Document:

Credit Agreement

 Exhibit 10.1 
 CREDIT AGREEMENT 
 ($300,000,000 Revolving Credit Facility) 
 dated as of 
 November 2, 2007

 between 
 KYPHON INC.,

 as Borrower, 
 and 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. 
 as
Lender 

 TABLE OF CONTENTS 
  

					
	 ARTICLE 1 DEFINITIONS
	  	1
	 Section 1.01
	  	Defined Terms	  	1
	 Section 1.02
	  	Classification of Loans	  	10
	 Section 1.03
	  	Terms Generally	  	10
	 Section 1.04
	  	Accounting Terms; GAAP	  	11
		
	 ARTICLE 2 THE CREDITS
	  	11
	 Section 2.01
	  	Commitment	  	11
	 Section 2.02
	  	Revolving Loans	  	11
	 Section 2.03
	  	Requests for Revolving Loans	  	12
	 Section 2.04
	  	Funding of Revolving Loan	  	12
	 Section 2.05
	  	Interest Elections	  	13
	 Section 2.06
	  	Termination and Reduction of Commitment	  	14
	 Section 2.07
	  	Repayment of Loans; Evidence of Debt	  	14
	 Section 2.08
	  	Prepayment of Loans	  	15
	 Section 2.09
	  	Fees	  	15
	 Section 2.10
	  	Interest	  	15
	 Section 2.11
	  	Alternate Rate of Interest	  	16
	 Section 2.12
	  	Increased Costs	  	17
	 Section 2.13
	  	Break Funding Payments	  	18
	 Section 2.14
	  	Taxes	  	18
	 Section 2.15
	  	Payments Generally	  	19
	 Section 2.16
	  	Extension of Maturity Date	  	20
		
	 ARTICLE 3 REPRESENTATIONS AND WARRANTIES
	  	20
	 Section 3.01
	  	Organization; Powers	  	20
	 Section 3.02
	  	Authorization; Enforceability	  	20
	 Section 3.03
	  	Governmental Approvals; No Conflicts	  	20
	 Section 3.04
	  	Financial Condition; No Material Adverse Change	  	21
	 Section 3.05
	  	Properties	  	21
	 Section 3.06
	  	Litigation and Environmental Matters	  	21
	 Section 3.07
	  	Compliance with Laws and Agreements	  	22
	 Section 3.08
	  	Investment Company Status	  	22
	 Section 3.09
	  	Taxes	  	22
	 Section 3.10
	  	ERISA	  	22
	 Section 3.11
	  	Disclosure	  	23
	 Section 3.12
	  	Federal Regulations	  	23
	 Section 3.13
	  	Purpose of Loans	  	23
		
	 ARTICLE 4 CONDITIONS
	  	23
	 Section 4.01
	  	Closing Conditions	  	23
	 Section 4.02
	  	Each Credit Event	  	24

  

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	 ARTICLE 5 AFFIRMATIVE COVENANTS
	  	24
	 Section 5.01
	  	Financial Statements and Other Information	  	24
	 Section 5.02
	  	Notices of Material Events	  	25
	 Section 5.03
	  	Existence; Conduct of Business	  	25
	 Section 5.04
	  	Payment of Obligations	  	26
	 Section 5.05
	  	Maintenance of Properties; Insurance	  	26
	 Section 5.06
	  	Books and Records; Inspection Rights	  	26
	 Section 5.07
	  	Compliance with Laws	  	26
	 Section 5.08
	  	Use of Proceeds	  	26
	 Section 5.09
	  	Maintenance of Accreditation, Etc.	  	26
		
	 ARTICLE 6 EVENTS OF DEFAULT
	  	27
		
	 ARTICLE 7 MISCELLANEOUS
	  	29
	 Section 7.01
	  	Notices	  	29
	 Section 7.02
	  	Waivers; Amendments	  	30
	 Section 7.03
	  	Expenses; Indemnity; Damage Waiver	  	30
	 Section 7.04
	  	Successors and Assigns	  	31
	 Section 7.05
	  	Survival	  	33
	 Section 7.06
	  	Counterparts; Integration; Effectiveness	  	33
	 Section 7.07
	  	Severability	  	33
	 Section 7.08
	  	Right of Setoff	  	34
	 Section 7.09
	  	Governing Law; Jurisdiction; Consent to Service of Process	  	34
	 Section 7.10
	  	WAIVER OF JURY TRIAL	  	34
	 Section 7.11
	  	Headings	  	35
	 Section 7.12
	  	Confidentiality	  	35
	 Section 7.13
	  	Patriot Act Notice	  	35

 SCHEDULES: 
 Schedule 3.06 - Disclosed Matters 
 EXHIBITS: 
 Exhibit A - Form of Interest Election Request 
 Exhibit B - Form of Revolving Loan Request 
  

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 CREDIT AGREEMENT 
 Dated as of November 2, 2007 
 KYPHON INC., a Delaware corporation (the “Borrower”)
and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. (the “Lender”), hereby agree as follows: 
 ARTICLE 1 
 Definitions 
 Section 1.01
Defined Terms. As used in this Credit Agreement, the following terms have the meanings specified below: 
 “ABR”, when used in reference to any Loan, refers to whether such Loan is bearing interest at a rate determined by reference to the Alternate Base Rate. 
 “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 
 “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus  1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal
Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. 
 “Applicable Rate” means, for any day, with respect to the facility fees payable hereunder, as the case may be, .04%.

 “Approved Fund” means (if the Lender is a fund that invests in commercial loans), any other fund that
invests in commercial loans and is managed or advised by the same investment advisor as the Lender or by an Affiliate of such investment advisor. 
 “Availability Period” means the period from and including the Closing Date to but excluding the Maturity Date. 
 “Board” means the Board of Governors of the Federal Reserve System of the United States of America. 
 “Borrower” means Kyphon Inc., a Delaware corporation and its successors and permitted assigns. 
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York, New York
are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits
in the London interbank market. 
  

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 “Capital Lease Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a
balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
 “Capital Stock” means (i) in the case of a corporation, capital stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of capital stock, (iii) in the case of a partnership, partnership interests (whether general or limited), (iv) in the case of a limited liability company, membership interests and (v) any other
interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 
 “Cash Equivalents” shall mean (a) securities issued or directly and fully guaranteed or insured by the United States
of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof) having maturities of not more than twelve months from the date of acquisition
(“Government Obligations”), (b) U.S. dollar denominated (or foreign currency fully hedged) time deposits, certificates of deposit, Eurodollar time deposits and Eurodollar certificates of deposit of (y) any domestic
commercial bank of recognized standing having capital and surplus in excess of $250,000,000 or (z) any bank whose short-term commercial paper rating from S&P is at least A-1 or the equivalent thereof or from Moody’s is at least P-1 or
the equivalent thereof (any such bank being an “Approved Bank”), in each case with maturities of not more than 364 days from the date of acquisition, (c) commercial paper and variable or fixed rate notes issued by any Approved
Bank (or by the parent company thereof) or commercial paper or any variable rate notes issued by, or guaranteed by any domestic corporation rated A-2 (or the equivalent thereof) or better by S&P or P-2 (or the equivalent thereof) or better by
Moody’s and maturing within six months of the date of acquisition, (d) repurchase agreements with a bank or trust company (including the Lender) or a recognized securities dealer having capital and surplus in excess of $500,000,000 for
direct obligations issued by or fully guaranteed by the United States of America, (e) obligations of any state of the United States or any political subdivision thereof for the payment of the principal and redemption price of and interest on
which there shall have been irrevocably deposited Government Obligations maturing as to principal and interest at times and in amounts sufficient to provide such payment and (f) auction preferred stock rated in the highest short-term credit
rating category by S&P or Moody’s. 
 “Change in Control” means (a) the acquisition of
ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof) other than Parent or a subsidiary of
Parent of shares representing more than 

  

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25% of the aggregate ordinary voting power represented by the issued and outstanding Capital Stock of the Borrower; (b) occupation of a majority of the
seats (other than vacant seats) on the board of directors of the Borrower by Persons who were neither (i) nominated by the board of directors of the Borrower or elected by Parent or a subsidiary of Parent nor (ii) appointed by directors so
nominated or elected; or (c) the acquisition of direct or indirect Control of the Borrower by any Person or group other than Parent or a subsidiary of Parent. For the avoidance of doubt, a change in control, including a merger, consolidation,
liquidation, dissolution or stock or asset sale of the Borrower into or with Parent or a subsidiary of Parent shall not mean a “Change in Control”. 
 “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Credit Agreement,
(b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Credit Agreement or (c) compliance by the Lender (or, for purposes of Section 2.14(b),
by any lending office of the Lender or by the Lender’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Credit
Agreement. 
 “Closing Date” means the date hereof. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 “Commitment” means the commitment of the Lender to make Loans. The initial amount of the Lender’s Commitment is
$300,000,000. 
 “Commitment Letter” means the letter agreement dated October 30, 2007 addressed to the
Borrower from the Lender. 
 “Consolidated Assets” means the consolidated assets of the Borrower and its
Subsidiaries, determined in accordance with GAAP. 
 “Consolidated Tangible Assets” means the Consolidated
Assets less: (i) goodwill and (ii) other intangibles (other than patents, trademarks, licenses, copyrights and other intellectual property and prepaid assets). 
 “Consolidated Tangible Net Worth” means at any date, Consolidated Tangible Assets minus Consolidated Total
Liabilities, determined in accordance with GAAP. 
 “Consolidated Total Liabilities” means at any date, with
respect to the Borrower and its Subsidiaries on a consolidated basis, total liabilities, determined in accordance with GAAP. 
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or
otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
  

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 “Credit Documents” means a collective reference to this Credit
Agreement, the promissory notes, if any, and all other related agreements and documents issued or delivered hereunder or thereunder or pursuant hereto or thereto (in each case as the same may be amended, modified, restated, supplemented, extended,
renewed or replaced from time to time), and “Credit Document” means any one of them. 
 “Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 
 “Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in
Schedule 3.06. 
 “dollars” or “$” refers to lawful money of the United States of
America. 
 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources or the management, release or
threatened release of any Hazardous Material. 
 “Environmental Liability” means any liability, contingent or
otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated
as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code. 
 “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the
regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412
of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the 

  

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PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan;
(f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any
notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA. 
 “Eurodollar”, when used in reference to any
Loan, refers to whether such Loan bears interest at a rate determined by reference to the LIBO Rate. 
 “Event of
Default” has the meaning assigned to such term in Article VII. 
 “Excluded Taxes” means, with
respect to the Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by
the jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of the Lender, in which its lending office is located and (b) any branch profits taxes imposed by the United States
of America or any similar tax imposed by any other jurisdiction in which the Lender is located. 
 “Existing Credit
Agreement” means that Credit Agreement dated as of January 18, 2007 among the Borrower, certain of its Subsidiaries and the lenders party thereto. 
 “Extension Date” has the meaning specified in Section 2.16(b). 
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100
of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Lender from three Federal funds brokers of recognized
standing selected by it. 
 “Financial Officer” means the chief financial officer, principal accounting
officer, senior vice president of finance, treasurer, assistant treasurer, controller or assistant controller of a Person or any officer having substantially the same position for the Person. 
 “GAAP” means generally accepted accounting principles in the United States of America. 
 “Governmental Authority” means the government of the United States of America, any other nation or any political
subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government. 
  

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 “Guarantee” of or by any Person (the “guarantor”) means
any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply
funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, or (c) to
maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation; provided, that the term Guarantee shall
not include endorsements for collection or deposit in the ordinary course of business. 
 “Hazardous
Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
 “Hedging Agreement” means any interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement or other interest or currency exchange rate or commodity
price hedging arrangement. 
 “Indebtedness” of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to similar cash advances (including, without limitation, all obligations pursuant to any sale or financing of receivables, but excluding any premiums, fees and deposits received in the
ordinary course of business), (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable or other like obligations incurred in the ordinary course of business),
(e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (f) all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (i) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor. Notwithstanding the foregoing, Indebtedness shall exclude Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary. 
  

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 “Indemnified Liabilities” shall have the meaning assigned to such term
in Section 7.03(b). 
 “Indemnified Taxes” means Taxes other than Excluded Taxes. 
 “Interest Election Request” means a request by the Borrower to convert or continue a Revolving Loan in accordance with
Section 2.07, in substantially the form of Exhibit A. 
 “Interest Payment Date” means
(a) with respect to any ABR Loan, the last day of each March, June, September and December, and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Revolving Loan of which such Loan is a part and,
in the case of a Eurodollar Loan with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest
Period. 
 “Interest Period” means with respect to any Eurodollar Loan, the period commencing on the date of
such Eurodollar Loan and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower may elect; provided, that (i) if any Interest Period would end on a day
other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the immediately
preceding Business Day and (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on
the last Business Day of the last calendar month of such Interest Period. 
 “Lender” means The Bank of
Tokyo-Mitsubishi UFJ, Ltd. 
 “LIBO Rate” means, with respect to any Eurodollar Loan for any Interest Period,
the rate appearing on Page 3750 of the Moneyline Telerate Markets screen (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those currently provided on
such page of such Service, as determined by the Lender from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason, then the “LIBO
Rate” with respect to such Eurodollar Loan for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Lender in
immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 
  

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 “Lien” means, with respect to any asset (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. 
 “Loans” means the loans made by the Lender to the Borrower pursuant to Article II of this Credit Agreement. 

“Material Adverse Effect” means a material adverse effect on (a) the business, property, operations or financial
condition of the Borrower and the Subsidiaries taken as a whole, (b) the ability of the Borrower to perform any of its obligations under this Credit Agreement or (c) the legal rights of or benefits available to the Lender under this Credit
Agreement. A merger, consolidation, liquidation, dissolution or stock or asset sale of the Borrower into or with Parent or a subsidiary of Parent shall not mean a Material Adverse Effect. 
 “Material Indebtedness” means Indebtedness (other than the Loans), or obligations in respect of one or more Hedging
Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $100,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or
any Subsidiary in respect of any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Hedging Agreement were terminated at
such time. 
 “Maturity Date” means the earlier of (a) November 2, 2010, subject to the extension
thereof pursuant to Section 2.16 and (b) the date of termination in whole of the Commitments pursuant to Section 2.06 or Article VI. 
 “Moody’s” means Moody’s Investors Service, Inc. 
 “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 
 “Other Taxes” means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or
enforcement of, or otherwise with respect to, this Credit Agreement. 
 “Parent” means Medtronic, Inc., a
Minnesota corporation. 
  

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 “PBGC” means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions. 
 “Person” means any natural person,
corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and
in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
 “Prime Rate” means the rate of interest per annum publicly announced from time to time by the Lender as its base rate in
effect at its office in New York, New York, each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. 
 “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective
directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
 “Restricted
Payment” means (i) any dividend or other distribution, direct or indirect, on account of any shares of any class of capital stock of the Borrower or any of its Subsidiaries, now or hereafter outstanding (other than (A) dividends
payable solely in the same class of capital stock of such Person and (B) dividends or other distributions payable to the Borrower (directly or indirectly through Subsidiaries) and ratably to minority shareholders), (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of capital stock of the Borrower or any of its Subsidiaries, now or hereafter outstanding and (iii) any payment
made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of capital stock of the Borrower or any of its Subsidiaries, now or hereafter outstanding. 
 “Revolving Loan Request” means a request by the Borrower for a Revolving Loan in accordance with Section 2.03, in
substantially the form of Exhibit B. 
 “Revolving Credit Exposure” means the sum of the
outstanding principal amount of the Lender’s Loans at such time. 
 “Revolving Loan” means a Loan made
pursuant to Section 2.03. 
 “SEC” means the United States Securities and Exchange Commission.

 “S&P” means Standard & Poor’s Ratings Services. 
  

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 “Statutory Reserve Rate” means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by
the Board to which the Lender is subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such
Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to the
Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 
 “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited
liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with
GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the
ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, Controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more
subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. 
 “Subsidiary” means
any subsidiary of the Borrower. 
 “Taxes” means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental Authority. 
 “Transactions” means
the execution, delivery and performance by the Borrower of this Credit Agreement, the borrowing of Loans hereunder and the use of the proceeds thereof. 
 “Type”, when used in reference to any Loan refers to whether the rate of interest on such Loan is determined by reference to the LIBO Rate or the Alternate Base Rate. 
 “Used Commitment” means the aggregate outstanding principal amount of Loans. 
 “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
 Section 1.02
Classification of Loans. For purposes of this Agreement, Loans may be classified and referred to by Type (e.g., a “Eurodollar Loan”). 
 Section 1.03 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be
construed to have the same meaning and effect as the word 

  

 10 

 
“shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall
be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any
reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to
this Credit Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules
to, this Credit Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights. 
 Section 1.04 Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms
of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Lender that the Borrower requests an amendment to any provision hereof to eliminate
the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Lender notifies the Borrower that the Lender request an amendment to any provision hereof for such purpose),
regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 
 ARTICLE 2 
 The Credits 
 Section 2.01
Commitment. Subject to the terms and conditions set forth herein, the Lender agrees to make Loans to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in such aggregate
principal amount exceeding the Commitment. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Loans. 
 Section 2.02 Revolving Loans. 
 (a) Each Revolving Loan shall be made by the Lender. 
 (b) Subject to Section 2.11, each
Revolving Loan shall be an ABR Loans or a Eurodollar Loan as the Borrower may request in accordance herewith. The Lender at its option may make any Eurodollar Loan by causing a domestic or foreign branch or Affiliate of the Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Credit Agreement. 
  

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 (c) At the commencement of each Interest Period for any Eurodollar Loan or on the date of
any ABR Loan, such Revolving Loan shall be in a minimum aggregate amount of $5,000,000 and integral multiples of $500,000 in excess thereof; provided that an ABR Loan may be in the amount that is equal to the entire unused balance of the
Commitment. Revolving Loans of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than an aggregate total of ten Eurodollar Loans outstanding. 
 (d) Notwithstanding any other provision of this Credit Agreement, the Borrower shall not be entitled to request, or to elect to convert or
continue, any Revolving Loan if the Interest Period requested with respect thereto would end after the Maturity Date. 
 Section 2.03
Requests for Revolving Loans. To request a Revolving Loan, the Borrower shall notify the Lender of such request by telephone (a) in the case of a Eurodollar Loan, not later than 12:00 noon (New York City time), three Business
Days before the date of the proposed Revolving Loan or (b) in the case of an ABR Loan, not later than 12:00 noon (New York City time), on the date of the proposed Revolving Loan. Each such telephonic Revolving Loan Request shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Lender of a written Revolving Loan Request signed by a Financial Officer of the Borrower. Each such telephonic and written Revolving Loan Request shall specify the
following information in compliance with Section 2.02: 
 (i) the aggregate amount of the requested Revolving Loan;

 (ii) the date of such Revolving Loan, which shall be a Business Day; 
 (iii) whether such Revolving Loan is to be an ABR Loan or a Eurodollar Loan; 
 (iv) in the case of a Eurodollar Loan, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the
definition of the term “Interest Period”; and 
 (v) the location and number of the Borrower’s account to which
funds are to be disbursed, which shall comply with the requirements of Section 2.04. 
 If no election as to the Type of Revolving Loan
is specified, then the requested Revolving Loan shall be an ABR Loan. If no Interest Period is specified with respect to any requested Eurodollar Loan, then the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. 
 Section 2.04 Funding of Revolving Loan. The Lender shall make each Loan to be made by it hereunder on the proposed
date thereof by wire transfer of immediately available funds by 2:00 p.m. (New York City time), to the account of the Borrower most recently designated by it for such purpose by notice to the Lender. 
  

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 Section 2.05 Interest Elections. 
 (a) Each Revolving Loan initially shall be of the Type specified in the applicable Revolving Loan Request and, in the case of a Eurodollar
Loan, shall have an initial Interest Period as specified in such Revolving Loan Request. Thereafter, the Borrower may elect to convert such Revolving Loan to a different Type or to continue such Revolving Loan and, in the case of a Eurodollar Loan,
may elect Interest Periods therefore, all as provided in this Section. 
 (b) To make an election pursuant to this Section,
the Borrower shall notify the Lender of such election by telephone by the time that a Revolving Loan Request would be required under Section 2.03 if the Borrower were requesting a Revolving Loan of the Type resulting from such election to be
made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Lender of a written Interest Election Request signed by a Financial
Officer of the Borrower. 
 (c) Each telephonic and written Interest Election Request shall specify the following information
in compliance with Section 2.02: 
 (i) the Revolving Loan to which such Interest Election Request applies and, if
different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Revolving Loan (in which case the information to be specified pursuant to clauses (iii) and (iv) below
shall be specified for each resulting Revolving Loan); 
 (ii) the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day; 
 (iii) whether the resulting Revolving Loan is to be an ABR Loan
or a Eurodollar Loan; and 
 (iv) if the resulting Revolving Loan is a Eurodollar Loan, the Interest Period to be applicable
thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period.” 
 If any such Interest Election Request requests a Eurodollar Loan but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. 
 (d) If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Loan prior to the end of the Interest
Period applicable thereto, then, unless such Revolving Loan is repaid as provided herein, at the end of such Interest Period such Revolving Loan shall be continued as a Eurodollar Loan with an Interest Period of one month’s duration.
Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Lender so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Revolving Loan may be converted
to or continued as a Eurodollar Loan and (ii) unless repaid, each Eurodollar Loan shall be converted to an ABR Loan at the end of the Interest Period applicable thereto. 
  

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 Section 2.06 Termination and Reduction of Commitment. 
 (a) Unless previously terminated, the Commitment shall terminate on the Maturity Date. 
 (b) The Borrower may at any time terminate, or from time to time reduce, the Commitment in whole or in part; provided that
(i) each reduction of the Commitment shall be in an aggregate amount not less than $50,000,000 and integral multiples of $10,000,000 in excess thereof and (ii) the Borrower shall not terminate or reduce the Commitment if, after giving
effect to any concurrent prepayment of the Loans in accordance with Section 2.08, the Revolving Credit Exposures would exceed the Commitment. 
 (c) The Borrower shall notify the Lender of any election to terminate or reduce the Commitment under paragraph (b) of this Section at least three Business Days prior to the effective date of such termination
or reduction, specifying such election and the effective date thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitment delivered by the Borrower
may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Lender on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Commitment shall be permanent. 
 Section 2.07 Repayment of Loans; Evidence of
Debt. 
 (a) The Borrower hereby unconditionally promises to pay to the Lender the then unpaid principal amount of
each Revolving Loan and all interest, fees and other amounts payable hereunder on the Maturity Date. 
 (b) The Lender shall
maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to the Lender resulting from each Loan made by the Lender, including the amounts of principal and interest payable and paid to the
Lender from time to time hereunder. 
 (c) The entries made in the accounts maintained pursuant to paragraph (b) of this
Section shall be conclusive evidence (absent manifest error) of the existence and amounts of the obligations recorded therein; provided that the failure of the Lender to maintain such accounts or any error therein shall not in any manner
affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Credit Agreement. 
  

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 (d) The Lender may request that Loans made by it be evidenced by a promissory note. In
such event, the Borrower shall prepare, execute and deliver to the Lender a promissory note payable to the order of the Lender and in a form approved by the Lender and the Borrower. Thereafter, the Loans evidenced by such promissory note and
interest thereon shall at all times be represented by one or more promissory notes in such form payable to the order of the payee named therein. 
 Section 2.08 Prepayment of Loans. 
 (a) The Borrower shall have the right at any time and from time to
time to prepay any Loan in whole or in part, without premium or penalty, subject to Section 2.13 and subject to prior notice in accordance with paragraph (b) of this Section. 
 (b) The Borrower shall notify the Lender by telephone (confirmed by telecopy) of any prepayment hereunder (A) in the case of
prepayment of a Eurodollar Loan, not later than 12:00 noon (New York City time), three Business Days before the date of prepayment or (B) in the case of prepayment of an ABR Loan, not later than 12:00 noon (New York City time), on the
date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Loan or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a
conditional notice of termination of the Commitment as contemplated by Section 2.06, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.06. Each partial prepayment of any
Loan shall be in an amount that would be permitted in the case of an advance of a Loan of the same Type as provided in Section 2.02. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.10. 

Section 2.09 Fees. 
 (a) The Borrower agrees to pay to the Lender a facility fee, which shall accrue at the Applicable Rate on the daily amount of the Commitment (whether used or unused) during the period from and including the Closing Date to but excluding the
date on which such Commitment terminates. Accrued facility fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such
date to occur after the date hereof; provided that any facility fees accruing after the date on which the Commitments terminate shall be payable on demand. All facility fees shall be computed on the basis of a year of 360 days and shall be
payable for the actual number of days elapsed (including the first day but excluding the last day). 
 (b) All fees payable
hereunder shall be paid on the dates due, in immediately available funds, to the Lender. Fees paid shall not be refundable under any circumstances. 
 Section 2.10 Interest. 
 (a) Each ABR Loan shall bear interest at a rate per annum equal to the
Alternate Base Rate. 
 (b) Each Eurodollar Loan shall bear interest at a rate per annum equal to the LIBO Rate for the
Interest Period in effect for such Loan plus 0.185%. 
  

 15 

 (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee
or other amount payable by the Borrower hereunder is not paid when due (following the expiration of any grace period specified in Article VI), whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after
as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided above or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Loans as provided above. 
 (d) Accrued interest on each Loan shall be payable in arrears on each Interest
Payment Date for such Loan; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of
an ABR Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, (iii) in the event of any conversion of any Eurodollar Loan prior
to the end of the current Interest Period therefore, accrued interest on such Loan shall be payable on the effective date of such conversion and (iv) all accrued interest shall be payable upon termination of the Commitment. 
 (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the
Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). The applicable Alternate Base Rate or LIBO Rate shall be determined by the Lender, and such determination shall be conclusive absent manifest error. 
 (f) If the Lender shall be required under the regulations of the Board to maintain reserves with respect to liabilities or assets
consisting of, or including, Eurocurrency Liabilities (as defined in Regulation D of the Board), the Borrower shall pay to the Lender, additional interest on the unpaid principal amount of each Eurodollar Loan made to the Borrower by the
Lender, from the later of the date of such Loan or the date the Lender was required to maintain such reserves until such Loan is paid in full, at an interest rate per annum equal to the remainder obtained by subtracting (i) the LIBO Rate for
the Interest Period for such Loan from (ii) the rate obtained by multiplying LIBO Rate as referred to in clause (i) above by the Statutory Reserve Rate applicable to the Lender for such Interest Period. Such additional interest shall be
determined by the Lender and notified to the Borrower not later than five Business Days before the next Interest Payment Date for such Eurodollar Loan. 
 Section 2.11 Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Loan: 
 (a) the Lender reasonably determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do
not exist for ascertaining the LIBO Rate for such Interest Period; or 
  

 16 

 (b) the Lender, in its reasonable judgment believes that the LIBO Rate for such Interest
Period will not adequately and fairly reflect the cost to the Lender of making or maintaining its Revolving Loan for such Interest Period; 
 then the Lender shall give notice thereof to the Borrower by telephone or telecopy as promptly as practicable thereafter and, until the Lender notifies the Borrower that the circumstances giving rise to such notice no longer exist,
(i) any Interest Election Request that requests the conversion of any Revolving Loan to, or continuation of any Revolving Loan as, a Eurodollar Loan shall be ineffective, and (ii) if any Revolving Loan Request requests a Eurodollar Loan,
such Revolving Loan shall be made as an ABR Loan. 
 Section 2.12 Increased Costs. 
 (a) If any Change in Law shall: 
 (i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by the Lender (other than any reserves included in
the Statutory Reserve Rate); or 
 (ii) impose on the Lender or the London interbank market any other condition affecting this
Credit Agreement or Eurodollar Loans; 
 and the result of any of the foregoing shall be to increase the cost (except with respect to Excluded
Taxes) to the Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to increase the cost (except with respect to Excluded Taxes) by the Lender (whether of principal, interest or otherwise) by
an amount deemed by the Lender to be material, then the Borrower will pay to the Lender, such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered. 
 (b) If the Lender reasonably determines that any Change in Law regarding capital requirements has or would have the effect of reducing the
rate of return on the Lender’s capital or on the capital of the Lender’s holding company, if any, as a consequence of this Credit Agreement or the Loans made by the Lender, to a level below that which the Lender or the Lender’s
holding company could have achieved but for such Change in Law (taking into consideration the Lender’s policies and the policies of the Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will
pay to the Lender, such additional amount or amounts as will compensate the Lender or the Lender’s holding company for any such reduction suffered. 
 (c) A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender or its holding company, as specified in paragraph (a) or (b) of this Section and the method of
calculating such amounts, in reasonable detail, shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay the Lender the amount shown as due on any such certificate within 10 days after receipt
thereof. 
  

 17 

 (d) Failure or delay on the part of the Lender to demand compensation pursuant to this
Section shall not constitute a waiver of the Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate the Lender pursuant to this Section for any increased costs or reductions
incurred more than six months prior to the date that the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of the Lender’s intention to claim compensation therefore; provided further
that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof. 
 Section 2.13 Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last
day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice is permitted to be revocable under Section 2.08(b) if such notice is revoked in accordance herewith two
Business Days or less before the specified effective date), (d) the assignment of any Eurodollar Loan, then, in any such event, the Borrower shall compensate the Lender for the loss, cost and expense (but not loss of profit) attributable to
such event. In the case of a Eurodollar Loan, the loss to the Lender attributable to any such event shall be deemed to include an amount reasonably determined by the Lender to be equal to the excess, if any, of (i) the amount of interest that
the Lender would pay for a deposit equal to the principal amount of such Loan for the period from the date of such payment, conversion, failure or assignment to the last day of the then current Interest Period for such Loan (or, in the case of a
failure to borrow, convert or continue, the duration of the Interest Period that would have resulted from such borrowing, conversion or continuation) if the interest rate payable on such deposit were equal to the LIBO Rate for such Interest Period,
over (ii) the amount of interest that the Lender would earn on such principal amount for such period if the Lender were to invest such principal amount for such period at the interest rate that would be bid by the Lender (or an affiliate of the
Lender) for dollar deposits from other banks in the eurodollar market at the commencement of such period. A certificate of the Lender setting forth any amount or amounts that the Lender is entitled to receive pursuant to this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay the Lender the amount shown as due on any such certificate within 10 days after receipt thereof. 
 Section 2.14 Taxes. 
 (a) Any and all payments by or on account of any obligation of the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to
deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this
Section) the Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law. 
  

 18 

 (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law. 
 (c) The Borrower shall indemnify the Lender, within 10 days after written
demand therefore, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by the Lender and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such
payment or liability delivered to the Borrower by the Lender shall be conclusive absent manifest error. 
 (d) As soon as
practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Lender. 
 (e) If the Lender claims any additional amounts payable pursuant to this Section 2.14, it agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to select or change the jurisdiction
of its applicable lending office if the making of such a selection or change would avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue and would not, in the reasonable judgment of the Lender, be
otherwise disadvantageous to the Lender. 
 (f) If the Lender obtains a refund of any Tax for which payment has been made
pursuant to this Section 2.14, which refund in the good faith judgment of the Lender (and without any obligation to disclose its tax records) is allocable to such payment made under this Section 2.14, the amount of such refund (together
with any interest received thereon and reduced by reasonable costs incurred in obtaining such refund) promptly shall be paid to the Borrower to the extent payment has been made in full by the Borrower pursuant to this Section 2.14. 

Section 2.15 Payments Generally. The Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, or under Section 2.12, 2.13 or 2.14, or otherwise) prior to 1:00 P.M. (New York City time), on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date
may, in the discretion of the Lender, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Lender at its offices at 227 West Monroe Street, Suite
2300, Chicago, Illinois 60606, except that payments pursuant to Sections 2.12, 2.13, 2.14 and 7.03 shall be made directly to the Persons entitled thereto. If any payment hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars. 
  

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 Section 2.16 Extension of Maturity Date. 
 (a) At least 45 days but not more than 60 days prior to the first anniversary of the Closing Date, the Borrower, by written notice to the
Lender, may request an extension of the Maturity Date in effect at such time by one year from its then scheduled expiration. The Lender shall in its sole discretion, not later than 20 days prior to such anniversary date, notify the Borrower in
writing as to whether the Lender will consent to such extension. 
 (b) If the Lender consents in writing to any such request
in accordance with subsection (a) of this Section 2.16, the Maturity Date in effect at such time shall, effective as at the applicable anniversary date (the “Extension Date”), be extended for one year; provided that
on each Extension Date (x) the representations and warranties in Article III shall be true and correct and (y) no Default shall have occurred and be continuing. 
 ARTICLE 3 
 Representations and Warranties 
 The Borrower represents and warrants to the Lender that: 
 Section 3.01 Organization; Powers. The Borrower and its Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite
power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is
in good standing in, every jurisdiction where such qualification is required. 
 Section 3.02 Authorization; Enforceability.
The Transactions are within the Borrower’s corporate powers and have been duly authorized by all necessary corporate and, if required or applicable, shareholder or member actions. This Credit Agreement and each promissory note, if any, has been
duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
 Section 3.03 Governmental Approvals; No Conflicts. The Transactions (a) do not require any material consent or approval of, registration or filing with, or any other action by, any Governmental
Authority, except such as have been obtained or made and are in full force and effect, except for any filing of this Agreement with the SEC (which, if required, will be timely filed), (b) will not violate any applicable law or regulation or the
charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a default under any material indenture, agreement or other instrument
binding upon the Borrower or any of its Subsidiaries or any of their respective assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries, and (d) will not result in the creation or
imposition of any Lien on any asset of the Borrower or any of its Subsidiaries. 
  

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 Section 3.04 Financial Condition; No Material Adverse Change. 
 (a) The Borrower has heretofore furnished to the Lender (i) its consolidated balance sheet and statements of operations,
stockholders’ equity and cash flows as of and for the fiscal year ended December 31, 2006, reported on by PricewaterhouseCoopers LLP, independent public accountants, and (ii) its consolidated balance sheet and statements of
operations and cash flows as of and for the fiscal quarters ended March 31, 2007 and June 30, 2007, each as filed on the Borrower’s Form 10-Qs for the applicable period. Such financial statements present fairly, in all material
respects, the financial position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of
footnotes in the case of the statements referred to in clause (ii) above. 
 (b) There has been no material adverse
change in the business, assets, operations, or financial condition of the Borrower and its Subsidiaries, taken as a whole, from the Borrower’s Form 10-K for the fiscal year ended December 31, 2006, other than those disclosed in the
Borrower’s quarterly reports on Form 10-Q for its fiscal quarters ended on March 31, 2007 and June 30, 2007, and the Borrower’s Current Reports on Form 8-K dated August 23, 2007, September 11,
2007, September 19, 2007 and October 9, 2007. 
 Section 3.05 Properties. 
 (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property
material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes. 
 (b) Except for Disclosed Matters, each of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, patents and other intellectual property material to its business, and the use thereof by the Borrower and its Subsidiaries does not infringe upon the rights of any other Person, except for any such infringements that, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
 Section 3.06 Litigation and Environmental
Matters. 
 (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority
pending against or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could
reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) which in any manner draws into question the validity or enforceability of this Credit Agreement.

  

 21 

 (b) Except for the Disclosed Matters or except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows
of any basis for any Environmental Liability. 
 (c) Since the date of this Credit Agreement, there has been no change in the
status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in a Material Adverse Effect. 
 Section 3.07 Compliance with Laws and Agreements. 
 (a) Each of the Borrower
and its Subsidiaries is in compliance with all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect. No Default has occurred and is continuing. 
 (b) Neither the Borrower nor any Subsidiary is in
violation of any law, rule or regulation, or in default with respect to any judgment, writ, injunction or decree of any Governmental Authority, where such violation or default would reasonably be expected to result in a Material Adverse Effect.

 Section 3.08 Investment Company Status. Neither the Borrower nor any of its Subsidiaries is an “investment
company” as defined in, or subject to regulation under, the Investment Company Act of 1940. 
 Section 3.09 Taxes. Each of
the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed (taking into account any extensions granted by the applicable taxing authority) and has paid or caused to be paid all
Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to
the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect. 
 Section 3.10
ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material
Adverse Effect. The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $100,000,000 the fair market value of the assets of such Plan, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $100,000,000 the fair market value of the assets of all such underfunded Plans.

  

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 Section 3.11 Disclosure. The Borrower has disclosed (which disclosure includes all filings
by the Borrower pursuant to the Exchange Act of 1934) to the Lender all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the reports, financial statements, certificates or other information furnished in writing by or on behalf of the Borrower to the Lender for use specifically in
connection with the negotiation of this Credit Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith
based upon assumptions believed to be reasonable at the time. 
 Section 3.12 Federal Regulations. No part of the proceeds of
any Loans will be used in any transaction or for any purpose which violates the provisions of Regulation T, U or X of the Board of Governors of the Federal Reserve System, as now and from time to time hereafter in effect. If requested by the
Lender, the Borrower will furnish to the Lender a statement to the foregoing effect in conformity with the requirements of Form FR U-1 referred to in said Regulation U. 
 Section 3.13 Purpose of Loans. The proceeds of the Loans shall be used to (i) refinance the Existing Credit Agreement and
(ii) retire other debt obligations of the Borrower. 
 ARTICLE 4 
 Conditions 
 Section 4.01 Closing Conditions. This Credit
Agreement shall become effective on the date on which each of the following conditions is satisfied (or waived in accordance with Section 7.02): 
 (a) The Lender (or its counsel) shall have received (i) from the Borrower either (i) a counterpart of this Credit Agreement signed on behalf of the Borrower or (ii) written evidence satisfactory to the
Lender (which may include telecopy transmission of a signed signature page of this Credit Agreement) that the Borrower has signed a counterpart of this Credit Agreement and (ii) from Medtronic, Inc. (“Parent Company” or the
“Guarantor”) a guaranty of the Borrower’s obligations under this Credit Agreement in form and substance satisfactory to the Lender (the “Guaranty”) together with appropriate documentation of the due
authorization and execution of the Guaranty (including certification of the authority and signatures of officers executing the Guaranty) and an external legal opinion addressing, inter alia, due authorization, execution, etc. of the Guaranty and its
validity and enforceability. 
  

 23 

 (b) The Lender shall have received such documents and certificates as the Lender or its
counsel may reasonably request relating to the organization, existence and good standing of the Borrower, the authorization by the Borrower of the Transactions or this Agreement (including appropriate certification of the authority and signatures of
officers executing this Agreement on behalf of the Borrower), all in form and substance satisfactory to the Lender and its counsel. 
 (c) The Lender shall have received a certificate, dated the Closing Date and signed by the President, a Vice President or a Financial Officer of the Borrower, confirming compliance with the conditions set forth in paragraphs (a) and
(b) of Section 4.02. 
 (d) The Lender shall have received all fees and other amounts due and payable on or prior to
the Closing Date, including, without limitation the fees set forth in the Commitment Letter and, to the extent invoiced, the reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.

 Section 4.02 Each Credit Event. The obligation of the Lender to make a Loan on the occasion of any Revolving Loan is subject
to the satisfaction of the following conditions: 
 (a) The representations and warranties of the Borrower set forth in this
Credit Agreement shall be true and correct in all material respects on and as of the date of, and after giving effect to such Loan; provided, that, the representations and warranties contained in Sections 3.04(b), 3.06 (other than clause
(a)(ii) thereof), 3.07(a) and 3.10 shall be deemed made, and shall be required to be true and correct, only on the Closing Date. 
 (b) At the time of and immediately after giving effect to such Loan, no Default shall have occurred and be continuing. 
 Each Loan
shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section. 
 ARTICLE 5 
 Affirmative Covenants 
 Until the Commitment has expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in
full, the Borrower covenants and agrees with the Lender that: 
 Section 5.01 Financial Statements and Other Information. The
Borrower will furnish to the Lender: 
 (a) within 100 days after the end of each fiscal year of the Borrower, its
unaudited consolidated balance sheet and related statements of operations, shareholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year.

  

 24 

 (b) concurrently with any delivery of financial statements under paragraph (a)
above, a certificate of a Financial Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto and
(ii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in Section 3.04(a)(i) and, if any such change has occurred, specifying the effect of such
change on the financial statements accompanying such certificate; and 
 (c) promptly following any request therefor, such
other information regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary, or compliance with the terms of this Credit Agreement, as the Lender may reasonably request. 
 Section 5.02 Notices of Material Events. The Borrower will furnish to the Lender prompt written notice of, but in any event not later than
five Business Days after, the following: 
 (a) the occurrence of any Default; 
 (b) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected
to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $100,000,000; 
 (c) the
non-compliance with any contractual obligation or requirement of law that is not currently being contested in good faith by appropriate proceedings if all such non-compliance in the aggregate could reasonably be expected to have a Material Adverse
Effect; 
 (d) the revocation of any license, permit, authorization, certificate, qualification or accreditation of the
Borrower or any Subsidiary by any Governmental Authority if all such revocations in the aggregate could reasonably be expected to have a Material Adverse Effect; 
 (e) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect. 
 Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting
forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
 Section 5.03 Existence; Conduct of Business. The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence
and the rights, licenses, permits, privileges and franchises material to the conduct of its business; provided that the nothing in this Agreement or this Section 5.03 shall prohibit a merger, consolidation, liquidation, dissolution or
stock or asset sale of the Borrower into or with Parent or a subsidiary of Parent. 
  

 25 

 Section 5.04 Payment of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being
contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest
could not reasonably be expected to result in a Material Adverse Effect. 
 Section 5.05 Maintenance of Properties; Insurance.
The Borrower will, and will cause each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and (b) maintain, with
financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations or maintain a
system or systems of self-insurance or assumption of risk which accords with the practices of similar businesses. 
 Section 5.06 Books
and Records; Inspection Rights. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its
business and activities. The Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by the Lender, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its
books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested. 
 Section 5.07 Compliance with Laws. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations
and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
 Section 5.08 Use of Proceeds. The proceeds of the Loans will be used for the purposes described in Section 3.13. No part of the
proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations U and X. 
 Section 5.09 Maintenance of Accreditation, Etc. The Borrower will preserve and maintain, and cause each of its Subsidiaries to preserve and
maintain, all licenses, permits, authorizations, certifications and qualifications (including, without limitation, those qualifications with respect to solvency and capitalization) required, except where the failure to do so would not result in a
Material Adverse Effect. 
  

 26 

 ARTICLE 6 
 Events of Default 
 If any of the following events (“Events of Default”)
shall occur: 
 (a) the Borrower shall fail to pay any principal of any Loan when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; 
 (b) the Borrower shall
fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable under this Credit Agreement, when and as the same shall become due and payable; 
 (c) any representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in or in connection with this
Credit Agreement or any amendment or modification hereof, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Credit Agreement or any amendment or modification hereof, shall prove to
have been incorrect in any material respect when made or deemed made; 
 (d) the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in Section 5.02, 5.03 (with respect to the Borrower’s existence) or 5.08; 
 (e) the Borrower shall fail to observe or perform any covenant, condition or agreement contained in this Credit Agreement (other than those specified in clause (a), (b) or (d) of this Article); 
 (f) the Borrower, the Guarantor or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of
amount) in respect of any Material Indebtedness, when and as the same shall become due and payable (subject to any applicable grace periods or notice requirements); 
 (g) any event or condition occurs that results in any Material Indebtedness of the Borrower or the Guarantor (including that arising under
Guarantor’s Credit Agreement ($1,750,000,000 Five Year Revolving Credit Facility) dated as of December 20, 2006, among the Borrower and the lenders thereto) becoming due prior to its scheduled maturity or that enables or permits (with the
giving of notice if required) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance
thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to (i) secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness,
(ii) any Indebtedness that may be due to Disc-o-Tech, as disclosed in the Borrower’s Form 8-K dated October 5, 2007, or (iii) the Indebtedness under this Agreement; 
  

 27 

 (h) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or the Guarantor or such entity’s debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or the Guarantor or for a substantial part of such entity’s
assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered; 
 (i) the Borrower or the Guarantor shall (i) voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or the Guarantor or for a
substantial part of such entity’s assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any
action for the purpose of effecting any of the foregoing; 
 (j) the Borrower or the Guarantor shall become unable, admit in
writing its inability to pay, or fail generally to pay its debts as they become due, or the Guarantor shall disclaim or repudiate its obligations under the Guaranty; 
 (k) one or more judgments or decrees shall be rendered against the Borrower or the Guarantor and the same shall not have been paid,
vacated, discharged, stayed or bonded pending appeal within 75 days from the entry thereof that involves in the aggregate a liability (not paid or fully covered by insurance) of $100,000,000 or more; 
 (l) an ERISA Event shall have occurred that, in the opinion of the Lender, when taken together with all other ERISA Events that have
occurred, could reasonably be expected to result in a Material Adverse Effect; or 
 (m) a Change in Control of the Borrower
or the Guarantor (under subdivision (a) or (b) of the definition thereof, replacing “Borrower” with “Guarantor” in such definition) shall occur. 
 then, and in every such event (other than failure of the Borrower to pay any Loan on the Maturity Date and an event with respect to the Borrower or the
Guarantor described in clause (h) or (i) of this Article), if such default continues for a period of 10 days after receipt of notice (provided that no such notice will be required with respect to an event described in clause (a) of
this Article) thereof by the Borrower from the Lender, and at any time thereafter during the continuance of such event, the Lender may take either or both of the following actions, at the same or different times: (i) terminate the
Commitment, and thereupon the Commitment shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in 

  

 28 

 
which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately (and the Commitment shall terminate), without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (h) or (i) of this Article, the Commitment shall automatically terminate and the
principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower. 
 ARTICLE 7 
 Miscellaneous 
 Section 7.01 Notices. Except in the case of
notices and other communications expressly permitted to be given by telephone or as otherwise set forth in Section 7.01(b) below, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows: 
  

	 	(i)	if to the Borrower: 

 Kyphon Inc. 
 c/o Medtronic, Inc. 
 710 Medtronic Parkway

 Minneapolis, MN 55432-5604 
 Attention: Treasury Department, Mail Stop LC480 
 Telecopy No. (763) 505-2700 
 with copies to: 
 Kyphon Inc. 
 1221 Crossman Avenue 
 Sunnyvale, CA 94089

 Attention: General Counsel 
 Telecopy No. (408) 222-5908 
 Medtronic, Inc. 
 710 Medtronic Parkway 
 Minneapolis, MN 55432-5604 
 Attention: General Counsel, Mail Stop LC400 
 Telecopy No. (763) 572-5459 
  

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	 	(ii)	if to the Lender 

 The Bank of Tokyo-Mitsubishi UFJ, Ltd.

 227 West Monroe Street, Suite 2300 
 Chicago, IL 60606 
 Attention: U.S. Corporate Banking 
 Telecopy No. (312) 696-4535 
 Any party
hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Credit
Agreement shall be deemed to have been given on the date of receipt. 
 Section 7.02 Waivers; Amendments. 
 (a) No failure or delay by the Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Lender hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Credit Agreement or consent to any departure by the Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless of whether the Lender or may have had notice or knowledge of such Default at the time. 
 (b) Neither this Credit Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by the Borrower and the Lender. 
 Section 7.03 Expenses; Indemnity; Damage Waiver.

 (a) The Borrower shall pay all reasonable out-of-pocket expenses incurred by the Lender, including the reasonable fees,
charges and disbursements of outside counsel for the Lender, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of this Credit Agreement or any amendments, modifications or waivers of
the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated). 
 (b) The
Borrower shall indemnify the Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees and disbursements of any outside counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery
of this Credit Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto of 

  

 30 

 
their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iii) any actual
or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by the Borrower or any of their respective directors, shareholders or creditors, an
Indemnitee or any other Person, and regardless of whether any Indemnitee is a party thereto (all of the foregoing, collectively, the “Indemnified Liabilities”); provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnitee. 
 (c) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Credit Agreement or any agreement or instrument contemplated hereby,
the Transactions, any Loan or the use of the proceeds thereof. 
 (d) All amounts due under this Section shall be payable
promptly after written demand therefor. 
 Section 7.04 Successors and Assigns. 
 (a) The provisions of this Credit Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender (and any attempted assignment or transfer by the
Borrower without such consent shall be null and void). Nothing in this Credit Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and,
to the extent expressly contemplated hereby, the Related Parties of the Lender) any legal or equitable right, remedy or claim under or by reason of this Credit Agreement. 
 (b) The Lender may assign to one or more assignees all or a portion of its rights and obligations under this Credit Agreement;
provided that (i) except in the case of an assignment to an Approved Fund with respect thereto, each of the Borrower and the Lender must give their prior written consent to such assignment (which consent shall not be unreasonably
withheld), and (ii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Credit Agreement; provided further that any consent of the Borrower
otherwise required under this paragraph shall not be required if an Event of Default has occurred and is continuing. 
  

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 (c) The Lender may, without the consent of the Borrower, sell participations to one or
more banks or other entities (a “Participant”) in all or a portion of the Lender’s rights and obligations under this Credit Agreement; provided that (i) the Lender’s obligations under this Credit Agreement
shall remain unchanged, (ii) the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower shall continue to deal solely and directly with the Lender in connection
with the Lender’s rights and obligations under this Credit Agreement. Any agreement or instrument pursuant to which the Lender sells such a participation shall provide that the Lender shall retain the sole right to enforce this Credit Agreement
and to approve any amendment, modification or waiver of any provision of this Credit Agreement; provided that such agreement or instrument may provide that the Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 7.02(b) that affects such Participant. Subject to paragraph (f) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.12, 2.13 and 2.14 to the same extent as if it were the Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. 
 (d) A Participant shall not be entitled to receive any greater payment under Section 2.12 or 2.14 than the Lender would have been
entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. 
 (e) The Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Credit Agreement to
secure obligations of the Lender, including any such pledge or assignment to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of
a security interest shall release the Lender from any of its obligations hereunder or substitute any such assignee for the Lender as a party hereto. 
 (f) Notwithstanding anything to the contrary contained herein, the Lender may grant to a special purpose funding vehicle (an “SPC”) of the Lender, identified as such in writing from time to time by
the Lender to the Borrower, the option to provide to the Borrower all or any part of any Loan that the Lender would otherwise be obligated to make to the Borrower pursuant to Section 2.01; provided that (i) nothing herein shall
constitute a commitment to make any Loan by any SPC and (ii) if an SPC elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Lender shall be obligated to make such Loan pursuant to the terms hereof.
The making of a Loan by an SPC hereunder shall utilize the Commitment to the same extent, and as if, such Loan were made by the Lender. Each party hereto hereby agrees that no SPC shall be liable for any payment under this Credit Agreement for which
the Lender would otherwise be liable, for so long as, and to the extent, the Lender makes such payment. In furtherance of the foregoing, each party hereto hereby agrees that, prior to the date that is one year and one day after the payment in full
of all outstanding senior indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings 

  

 32 

 
or similar proceedings under the laws of the United States or any State thereof. In addition, notwithstanding anything to the contrary contained in this
Section 7.04 or in Section 7.12, any SPC may (i) with notice to, but without the prior written consent of, the Borrower and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the
Lender or to any financial institutions providing liquidity and/or credit facilities to or for the account of such SPC to fund the Loans made by such SPC or to support the securities (if any) issued by such SPC to fund such Loans and
(ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of a surety, guarantee or credit or liquidity enhancement to such SPC. 
 Section 7.05 Survival. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or
other instruments delivered in connection with or pursuant to this Credit Agreement shall be considered to have been relied upon by the Lender and shall survive the execution and delivery of this Credit Agreement and the making of any Loans,
regardless of any investigation made by the Lender on its behalf and notwithstanding that the Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall
continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Credit Agreement is outstanding and unpaid and so long as the Commitment have not expired or
terminated. The provisions of Sections 2.12, 2.13, 2.14 and 7.03 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination
of the Commitment or the termination of this Credit Agreement or any provision hereof. 
 Section 7.06 Counterparts; Integration;
Effectiveness. This Credit Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single
contract. This Credit Agreement and any separate letter agreements with respect to fees payable to the Lender constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Credit Agreement shall become effective when it shall have been executed by the Lender and when the Lender shall have received
counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Credit Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Credit Agreement. 
 Section 7.07 Severability. Any provision of this Credit Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision
in any other jurisdiction. 
  

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 Section 7.08 Right of Setoff. If an Event of Default shall have occurred and be continuing,
the Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness
at any time owing by the Lender to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing under this Credit Agreement held by the Lender, irrespective of whether or not the
Lender shall have made any demand under this Credit Agreement and although such obligations may be unmatured. The rights of the Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which the
Lender may have. 
 Section 7.09 Governing Law; Jurisdiction; Consent to Service of Process. 
 (a) This Credit Agreement shall be construed in accordance with and governed by the law of the State of New York. 
 (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Credit Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New
York State court or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Credit Agreement shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Credit Agreement against the Borrower or its properties in
the courts of any jurisdiction. 
 (c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Credit Agreement in any court referred to in paragraph (b) of this
Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 (d) Each party to this Credit Agreement irrevocably consents to service of process in the manner provided for notices in
Section 7.01. Nothing in this Credit Agreement will affect the right of any party to this Credit Agreement to serve process in any other manner permitted by law. 
 Section 7.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, 

  

 34 

 
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 Section 7.11 Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not part of this Credit Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Credit Agreement. 
 Section 7.12 Confidentiality. The Lender agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ and its Approved Funds’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority, (c) to the extent, and only to the extent,
required by applicable laws or regulations or by any subpoena or similar legal process, provided that the Person required to disclose such information shall take reasonable efforts (at Borrower’s expense) to ensure that any Information so
disclosed shall be afforded confidential treatment, (d) to any other party to this Credit Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Credit Agreement or the
enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or
obligations under this Credit Agreement, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available
to the Lender on a nonconfidential basis from a source other than the Borrower who is not, to the knowledge of the Lender, under an obligation of confidentiality to Borrower with respect to such Information. For the purposes of this Section,
“Information” means all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the Lender on a nonconfidential basis prior to disclosure by the Borrower;
provided that, in the case of information received from the Borrower after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own
confidential information. 
 Section 7.13 Patriot Act Notice. The Lender hereby notifies the Borrower that pursuant to the
requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Lender to identify the
Borrower in accordance with the Patriot Act. The Borrower shall provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Lender in order to assist the Lender in maintaining compliance
with the Patriot Act. 
  

 35 

 IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be duly executed by their
respective authorized officers as of the day and year first above written. 
  

									
	BORROWER:	 		 	KYPHON INC.,
		 		 	a Delaware corporation
					
		 		 		 	By:	 	/s/ Peter L. Wehrly
		 		 		 	Name:	 	Peter L. Wehrly
		 		 		 	Title:	 	President
					
		 		 		 	By:	 	/s/ Robert Jordheim
		 		 		 	Name:	 	Robert Jordheim
		 		 		 	Title:	 	Chief Financial Officer
			
	LENDER:	 		 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
					
		 		 		 	By:	 	/s/ Victor Pierzchalski
		 		 		 	Name:	 	Victor Pierzchalski
		 		 		 	Title:	 	Vice President & Manager

  

 36 

 Schedule 3.06 – Disclosed Matters 
 The Borrower hereby incorporates by reference those matters disclosed in reports filed by the Borrower with the United States Securities and Exchange
Commission: (a) on Form 10-K for the Borrower’s fiscal year ended December 31, 2006, (b) on Form 10-Q for the Borrower’s fiscal quarter ended March 31, 2007, (c) on Form 10-Q for the Borrower’s fiscal quarters
ended June 30, 2007, (d) on Form 8-K dated August 23, 2007, September 11, 2007, September 19, 2007 and October 9, 2007. 

 Exhibit A 
 FORM OF INTEREST ELECTION REQUEST 
 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 
 227 West Monroe Street, Suite 2300 
 Chicago, IL 60606 
 Attention: U.S. Corporate Banking 
 Ladies and Gentlemen: 
 The undersigned, KYPHON INC. (the “Borrower”), refers to the Credit Agreement dated as of November 2, 2007 (as amended, modified,
restated or supplemented from time to time, the “Credit Agreement”), between the Borrower and the Lender, The Bank of Tokyo-Mitsubishi UFJ, Ltd. Capitalized terms used herein and not otherwise defined herein shall have the means
assigned to such terms in the Credit Agreement. The Borrower hereby gives notice pursuant to Section 2.07 of the Credit Agreement that it requests an extension or conversion of a Revolving Loan outstanding under the Credit Agreement, and in
connection therewith sets forth below the terms on which such extension or conversion is requested to be made: 
  

					
	 (A)
	  	 Loan to which this Interest Election Requests applies
	  	 
			
	 (B)
	  	 Date of Extension or Conversion
	  	 
			
	 (C)
	  	 Interest rate basis of resulting Loan
	  	 
			
	 (D)
	  	 Interest Period
	  	 

  

			
	KYPHON INC.
		
	By:	 	 
		 	Name:
		 	Title:
		
	By:	 	 
		 	Name:
		 	Title:

 Exhibit B 
 FORM OF REVOLVING LOAN REQUEST 
 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 
 227 West Monroe Street, Suite 2300 
 Chicago, IL 60606 
 Attention: U.S. Corporate Banking 
 Ladies and Gentlemen: 
 The undersigned, KYPHON INC. (the “Borrower”), refers to the Credit Agreement dated as of November 2, 2007 (as amended, modified,
restated or supplemented from time to time, the “Credit Agreement”), between the Borrower and The Bank of Tokyo-Mitsubishi UFJ, Ltd. Capitalized terms used herein and not otherwise defined herein shall have the means assigned to
such terms in the Credit Agreement. The Borrower hereby gives notice pursuant to Section 2.03 of the Credit Agreement that it requests a Revolving Loan under the Credit Agreement, and in connection therewith sets forth below the terms on which
such Revolving Loan is requested to be made: 
  

					
	 (A)
	  	 Date of Loan (which is a Business Day)
	  	 
			
	 (B)
	  	 Principal Amount of Loan
	  	 
			
	 (C)
	  	 Interest rate basis
	  	 
			
	 (D)
	  	 Interest Period
	  	 
			
	 (E)
	  	 Account to which funds are to be disbursed
	  	 

 In accordance with the requirements of Section 4.02 of the Credit Agreement, the Borrower
hereby reaffirms the representations and warranties set forth in the Credit Agreement as provided in clause (a) of such Section, and confirms that the matter referenced in clause (b) of such Section is true and correct. 
  

			
	KYPHON INC.
		
	By:	 	 
		 	Name:
		 	Title:
		
	By:	 	 
		 	Name:
		 	Title:Letter Agreement with Morgan Stanley & Co. regarding Fixed Dollar Collar ASR.

 Exhibit 10.1 
  

			
	 Reference Number: [    ]
	  	Account Number: [    ]

  

			
	

	  	 MORGAN STANLEY & CO. INCORPORATED
 1585
BROADWAY
 NEW YORK, NY 10036-8293
 (212)
761-4000

 August 30, 2007 
 Fixed Dollar Collared Accelerated Share Repurchase Transaction 
 Applera Corporation 
 301 Merritt 7 
 Norwalk, Connecticut 06851-1070 
  

 Dear Sir/Madam: 
 The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the Transaction entered into between Morgan
Stanley & Co. Incorporated (“MSCO”) and Applera Corporation (the “Issuer”) on the Trade Date specified below (the “Transaction”). This confirmation constitutes a “Confirmation” as referred to in the
ISDA Master Agreement specified below. 
 The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (as published by the
International Swaps and Derivatives Association, Inc. (“ISDA”)) (the “Equity Definitions”) are incorporated into this Confirmation. In the event of any inconsistency between the Equity Definitions and this Confirmation, this
Confirmation will govern. Any reference to a currency shall have the meaning contained in Annex A to the 1998 ISDA FX and Currency Option Definitions, as published by ISDA. 
 1. This Confirmation evidences a complete and binding agreement between MSCO and Issuer as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall be subject to an agreement (the
“Agreement”) in the form of the 2002 ISDA Master Agreement (the “ISDA Form”) as if MSCO and Issuer had executed an agreement in such form without any Schedule. For the avoidance of doubt, the Transaction shall be
the only transaction under the Agreement. 
 2. The terms of the particular Transaction to which this Confirmation relates are as follows: 
 GENERAL TERMS: 
  

			
	Trade Date:	  	As specified in Schedule I
		
	Buyer:	  	Issuer
		
	Seller:	  	MSCO
		
	Shares:	  	Common Stock of Issuer (Ticker: ABI)
		
	Number of Shares:	  	The number of Shares delivered in accordance with Physical Settlement below.
		
	Forward Price:	  	A price per Share (as determined by the Calculation Agent) equal to (i) the sum of the 10b-18 VWAP for each Trading

 Page 2 
  

			
		  	Day during the Calculation Period divided by (ii) the number of Trading Days in the Calculation Period minus (iii) the Discount Percentage (as specified in Schedule I)
multiplied by the Initial Hedge Period Reference Price; provided, however, that if the Forward Price would otherwise be: (A) greater than the Forward Cap Price, the Forward Price shall equal the Forward Cap Price (as specified in Schedule I), or (B)
less than the Forward Floor Price, the Forward Price shall equal the Forward Floor Price (as specified in Schedule I)
		
	10b-18 VWAP:	  	For each Trading Day during the Calculation Period, a price per share (as determined by the Calculation Agent) equal to the volume-weighted average price of the Rule 10b-18 eligible trades in
the Shares for the entirety of such Trading Day as determined by reference to the screen entitled “ABI.N <Equity> AQR SEC” or any successor page as reported by Bloomberg L.P. (without regard to pre-open or after hours trading outside
of any regular trading session for such Trading Day or block trades (as defined in Rule 10b-18(b)(5) of the Securities Exchange Act of 1934 as amended (the “Exchange Act”)) on such Trading Day).)
		
	Calculation Period:	  	The period from and including the first Trading Day that occurs after the Initial Hedge Completion Date to but excluding the relevant Valuation Date.
		
	Trading Day:	  	Any Exchange Business Day that is not a Disrupted Day or an Excluded Day (as defined below)
		
	Initial Shares:	  	As specified in Schedule I
		
	Initial Share Delivery Date:	  	One Exchange Business Day following the Trade Date. On the Initial Share Delivery Date, Seller shall deliver a number of shares equal to the Initial Shares to Buyer in accordance with Section
9.4 of the Equity Definitions, with the Initial Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4.
		
	Initial Hedge Period:	  	The period from and including the first Trading Day that occurs after the Trade Date to and including the Initial Hedge Completion Date
		
	Initial Hedge Completion Date:	  	The date on which MSCO completes its initial hedge, as determined by MSCO in its sole discretion
		
	Initial Hedge Period Reference Price:	  	A price per share (as determined by the Calculation Agent) equal to the average price at which MSCO purchases the Shares constituting its initial hedge.
		
	Additional Shares:	  	A number of Shares equal to (i) the Prepayment Amount (as defined below) divided by (ii) the Forward Cap Price minus (iii) the Initial Shares

  

 Page 3 
  

			
	Additional Share Delivery Date:	  	One Exchange Business Day following the Initial Hedge Completion Date. On the Additional Share Delivery Date, Seller shall deliver a number of shares equal to the Additional Shares to Buyer in
accordance with Section 9.4 of the Equity Definitions, with the Additional Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4.
		
	Prepayment:	  	Applicable
		
	Prepayment Amount:	  	As specified in Schedule I
		
	Commission Amount:	  	As specified in Schedule I
		
	Adjustment Amount:	  	As specified in Schedule I
		
	Structuring Fee:	  	As specified in Schedule I
		
	Prepayment Date:	  	One Exchange Business Days following the Trade Date. On the Prepayment Date, Buyer shall pay to Seller the Prepayment Amount, the Commission Amount, the Adjustment Amount and the Structuring
Fee.
		
	Exchange:	  	The New York Stock Exchange
		
	Related Exchange:	  	The primary exchange on which options or futures on the relevant Shares are traded.
		
	Market Disruption Event:	  	 The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by inserting the words “at
any time on any Scheduled Trading Day during the Calculation Period or” after the word “material,” in the third line thereof.
  
 Notwithstanding anything to the contrary in the Equity Definitions, if any Scheduled Trading Day in the Calculation Period is a Disrupted Day, the Calculation Agent shall
have the option in its sole discretion either (i) to determine the weighting of each Rule 10b-18 eligible transaction in the Shares on the relevant Disrupted Day using its commercially reasonable judgment for purposes of calculating the Forward
Price, as applicable, (ii) to elect to extend the Calculation Period by a number of Scheduled Trading Days equal to the number of Disrupted Days during the Calculation Period or (iii) to suspend the Calculation Period, as appropriate, until the
circumstances giving rise to such suspension have ceased. For the avoidance of doubt, if Calculation Agent elects the

  

 Page 4 
  

			
		  	option described in clause (i) above, then such Disrupted Day shall be deemed to be a Trading Day for purposes of calculating the Forward Price.
		
	Excluded Day:	  	November 23, 2007
		
	VALUATION:	  	
		
	Valuation Time:	  	The Scheduled Closing Time on the relevant Exchange
		
	Valuation Date:	  	 The earlier of (i) the Scheduled Valuation Date (as specified in Schedule I) and (ii) any date after the Lock-Out Date (as specified in Schedule I)
specified by MSCO to Issuer by 9:00pm EST on such date as a Valuation Date, in each case, subject to extension in accordance with “Market Disruption Event” above or Section 9, Section 10 or Section 11(c) below; provided, however, that if a
Valuation Date occurs pursuant to clause (ii) above, then (A) the Calculation Period for this Transaction (or portion thereof) shall be deemed to end as of the Trading Day immediately preceding the relevant Valuation Date and (B) MSCO shall have the
right to specify a Valuation Date with respect to any portion of this Transaction as it selects (any such Valuation Date on a portion of this Transaction for less than the full Prepayment Amount, a “Partial Acceleration Date”); provided,
however, that MSCO can elect no more than four Partial Acceleration Dates during the term of this Transaction.
  
 In the case of a Partial Acceleration Date, MSCO shall specify in its notice to Issuer designating a Valuation Date in connection with a Partial Acceleration Date the percentage of the Prepayment Amount that is
subject to such Valuation Date and Calculation Agent shall adjust all terms of this Transaction as it deems reasonable in order to take into account the occurrence of any Partial Acceleration Date (including cumulative adjustments to take into
account all Partial Acceleration Dates that occur during the term of this Transaction).
  
 On each Valuation Date, Calculation Agent shall calculate the relevant Settlement Amount.

		
	SETTLEMENT TERMS:	  	
		
	Physical Settlement:	  	 Applicable.
  
 On the Settlement Date, Seller shall deliver to Buyer a number of Shares equal to (a) (i) the Prepayment Amount divided by (ii) the Forward Price as determined on the relevant Valuation Date, minus (b)
the Initial Shares minus (c) the Additional Shares, rounded to the nearest whole number of shares.

  

 Page 5 
  

			
	Settlement Currency:	  	USD
		
	Settlement Date:	  	Three Exchange Business Days after a Valuation Date, or if such date is not a Clearance System Business Day or if there is a Settlement Disruption Event on such day, the immediately
succeeding Clearance System Business Day on which there is no Settlement Disruption Event.

 PROCEDURE FOR SETTLEMENT: 
 Except for delivery of Shares made in connection with the delivery of Initial Shares, each delivery of the Shares shall be made through the relevant Clearance System at the accounts specified by the parties on a free
delivery basis, for settlement on the applicable Settlement Date in accordance with Article 9 of the Equity Definitions; provided, however, that in Section 9.2(a)(iii) of the Equity Definitions the words “the Excess
Dividend Amount, if any, and” shall be deleted. 
 Share Adjustments: 
  

			
	Potential Adjustment Event:	  	Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, an Extraordinary Dividend shall not constitute a Potential Adjustment Event
		
	Extraordinary Dividend:	  	For any fiscal quarter occurring (in whole or in part) during the period from and including the first day of the Hedge Period to and including the Termination Date, any dividend or
distribution on the Shares with an ex-dividend date occurring during such fiscal quarter (other than any dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) or (B) of the Equity Definitions) (a
“Dividend”) that is either (i) a non-regularly scheduled Divided or (ii) the amount or value of which (as determined by the Calculation Agent) exceeds the Ordinary Dividend Amount.
		
	Ordinary Dividend Amount:	  	For any calendar quarter, USD 0.0425
		
	Method of Adjustment:	  	Calculation Agent Adjustment; provided that if Seller suspends trading in the Shares for all or any portion of a Trading Day within the Calculation Period, the suspension shall be treated as
a Potential Adjustment Event subject to Calculation Agent Adjustment. In the case of a suspension pursuant to Section 10, the Calculation Agent shall make such adjustments prior to the period of suspension, if it is practical to do so. Otherwise,
and in all cases of a suspension as contemplated under “Market Disruption Event” above, the Calculation Agent shall make such adjustments promptly following the period of suspension.

 EXTRAORDINARY EVENTS: 
 Consequences of Merger Events: 
  

 Page 6 
  

			
	Share-for-Share:	  	Modified Calculation Agent Adjustment
		
	Share-for-Other:	  	Cancellation and Payment on that portion of the other Consideration that consists of cash; Modified Calculation Agent Adjustment on the remainder of the Other Consideration
		
	Share-for-Combined:	  	Component Adjustment
		
	Tender Offer:	  	Applicable
		
	Consequences of Tender Offers:	  	
		
	Share-for-Share:	  	Modified Calculation Agent Adjustment
		
	Share-for-Other:	  	Modified Calculation Agent Adjustment
		
	Share-for-Combined:	  	Modified Calculation Agent Adjustment

 For purposes of this Transaction, the definition of Merger Date in Section 12.1(c) shall be amended to read,
“Merger Date shall mean the Announcement Date.” For purposes of this Transaction, the definition of Tender Offer Date in Section 12.1(e) shall be amended to read, “Tender Offer Date shall mean the Announcement Date.”

  

			
	Composition of Combined Consideration:	  	Applicable
		
	Nationalization, Insolvency or Delisting:	  	Cancellation and Payment
		
	Additional Disruption Events:	  	
		
	Change in Law:	  	Applicable
		
	Failure to Deliver:	  	Applicable
		
	Insolvency Filing:	  	Applicable
		
	Hedging Disruption:	  	Applicable
		
	Increased Cost of Hedging:	  	Applicable
		
	 Loss of Stock Borrow:
 Maximum Stock Loan
Rate:
	  	 Applicable
 100bps

		
	 Increased Cost of Stock Borrow:
 Initial Stock Loan Rate:

	  	 Applicable
 25bps

		
	Determining Party:	  	For all Extraordinary Events, MSCO
		
	Hedging Party:	  	For all Additional Disruption Events, MSCO
		
	Non-Reliance:	  	Applicable

  

 Page 7 
  

 AGREEMENTS AND ACKNOWLEDGMENTS: 
  

			
	Regarding Hedging Activities:	  	Applicable
		
	Additional Acknowledgments:	  	Applicable
		
	3. Calculation Agent:	  	MSCO
		
	4. Account Details:	  	To be provided.

 5.      (a) Nationalization or Insolvency. The words “the Transaction will be
cancelled,” in the first line of Section 12.6(c)(ii) are replaced with the words “MSCO will have the right to cancel this Transaction,”. 
 (b) Additional Termination Event. The declaration of any Extraordinary Dividend by Issuer during the period from and including the Trade Date to but excluding the last Valuation Date to occur in connection with this
Transaction shall constitute an Additional Termination Event with this Transaction as the only “Affected Transaction” and Issuer as the sole “Affected Party”. 
 (c) For the avoidance of doubt, this Transaction shall be deemed to be a “Forward Transaction” for purposes of the Equity Definitions.

 6. Certain Payments and Deliveries by MSCO. Notwithstanding anything to the contrary herein, or in the Equity Definitions, if at any time (i) an
Early Termination Date occurs and MSCO would be required to make a payment pursuant to Sections 6(d) and 6(e) of the Agreement, (ii) a Tender Offer occurs and MSCO would be required to make a payment pursuant to Sections 12.3 and 12.7 of the
Equity Definitions, (iii) a Merger Event occurs and MSCO would be required to make a payment pursuant to Sections 12.2 and 12.7 of the Equity Definitions or (iv) an Additional Disruption Event occurs and MSCO would be required to make a
payment pursuant to Sections 12.8 and 12.9 of the Equity Definitions, then Issuer shall have the option to require MSCO to make such payment in cash or to settle such payment amount in Shares (any such payment described in Sections 6(i), (ii),
(iii), or (iv) above, an “MSCO Payment Amount”). If Issuer elects for MSCO to settle an MSCO Payment Amount in Shares, then on the date such MSCO Payment Amount is due, a Settlement Balance shall be established with an initial
balance equal to the MSCO Payment Amount. On such date, MSCO shall commence purchasing Shares for delivery to Issuer. At the end of each Trading Day on which MSCO purchases Shares pursuant to this Section 6, MSCO shall reduce the Settlement
Balance by the amount paid by MSCO to purchase the Shares purchased on such Trading Day. MSCO shall deliver any Shares purchased on a Trading Day to Issuer on the third Exchange Business Day following the relevant Trading Day. MSCO shall continue
purchasing Shares until the Settlement Balance has been reduced to zero. 
 7. Certain Payments and Deliveries by Issuer. Notwithstanding anything to the
contrary herein, or in the Equity Definitions, if at any time (i) an Early Termination Date occurs and Issuer would be required to make a payment pursuant to Sections 6(d) and 6(e) of the Agreement, (ii) a Tender Offer occurs and Issuer
would be required to make a payment pursuant to Sections 12.3 and 12.7 of the Equity Definitions, (iii) a Merger Event occurs and Issuer would be required to make a payment pursuant to Sections 12.2 and 12.7 of the Equity Definitions or
(iv) an Additional Disruption Event occurs and Issuer would be required to make a payment pursuant to Sections 12.8 and 12.9 of the Equity Definitions (any such payment described in Sections 7(i), (ii), (iii), or (iv) above, an
“Early Settlement Payment”), then Issuer shall have the option, in lieu of making such cash payment, to settle its payment obligations under Sections 7(i), (ii), (iii), or (iv) above in Shares (such Shares, the “Early
Settlement Shares”). In order to elect to deliver Early Settlement Shares, (i) Issuer must notify MSCO of its election by no later than 4 p.m. EST on the date that is three Exchange Business Days before the date that the Early
Settlement Payment is due, (ii) must specify whether such Early Settlement Shares are to be sold by means of a registered offering or by means of a private placement and (iii) the conditions described in Section 8 below must be
satisfied as if the Early Settlement Shares were “Payment Shares” and any additional Shares Issuer delivers to reduce the settlement balance to zero in connection with this Section 8 were “Make-Whole Payment Shares”.

 Page 8 
  

 8.     Conditions to Delivery of Early Settlement Shares. 
 Issuer may only deliver Early Settlement Shares and Make-Whole Shares (as defined below) subject to satisfaction of the following conditions: 
 (a) If Issuer timely elects to deliver Early Settlement Shares and Make-Whole Shares by means of a registered offering, the following provisions
shall apply: 
 (i) On the later of (A) the Trading Day following the Issuer’s election to deliver Early Settlement
Shares and any Make-Whole Shares by means of a registered offering (the “Registration Notice Date”), and (B) the date on which the Registration Statement is declared effective by the SEC or becomes effective (the
“Registered Share Delivery Date”), the Issuer shall deliver to MSCO a number of Early Settlement Shares equal to the quotient of (I) the relevant Early Settlement Payment divided by (II) a price per Share as reasonably
determined by the Calculation Agent. For the avoidance of doubt, the Registered Share Delivery Date shall be deemed to be the Settlement Date if this Section 8(a) shall apply. 
 (ii) Promptly following the Registration Notice Date, the Issuer shall file with the SEC a registration statement (“Registration
Statement”) covering the public resale by MSCO of the Early Settlement Shares and any Make-Whole Shares (collectively, the “Registered Securities”) on a continuous or delayed basis pursuant to Rule 415 (or any similar or
successor rule), if available, under the Securities Act; provided that no such filing shall be required pursuant to this paragraph (ii) if the Issuer shall have filed a similar registration statement with unused capacity at least equal
to the relevant Early Settlement Payment and such registration statement has become effective or been declared effective by the SEC on or prior to the Registration Notice Date and no stop order is in effect with respect to such registration
statement as of the Registration Notice Date. The Issuer shall use its best efforts to file an automatic shelf registration statement or have the Registration Statement declared effective by the SEC as promptly as possible. 
 (iii) Promptly following the Registration Notice Date, the Issuer shall afford MSCO a reasonable opportunity to conduct a due diligence
investigation with respect to the Issuer customary in scope for underwritten offerings of equity securities (including, without limitation, the availability of senior management to respond to questions regarding the business and financial condition
of the Issuer and the right to have made available to MSCO for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by MSCO), and MSCO shall be satisfied in all material respects with
the results of such due diligence investigation of the Issuer. For the avoidance of doubt, the Issuer shall not have the right to deliver Shares pursuant to this Section 8(a) (and the conditions to delivery of Early Settlement Shares specified
in this Section 8(a) shall not be satisfied) until MSCO is satisfied in all material respects with the results of such due diligence investigation of the Issuer. 
 (iv) From the effectiveness of the Registration Statement until all Registered Securities have been sold by MSCO, the Issuer shall, at the
request of MSCO, make available to MSCO a printed prospectus relating to the Registered Securities in form and substance (including, without limitation, any sections describing the plan of distribution) satisfactory to MSCO (a
“Prospectus”, which term shall include any prospectus supplement thereto), in such quantities as Morgan shall reasonably request. 
 (v) The Issuer shall use its best efforts to prevent the issuance of any stop order suspending the effectiveness of the Registration Statement or of any order preventing or suspending the use of any Prospectus and, if
any such order is issued, to obtain the lifting thereof as soon thereafter as is possible. If the Registration Statement, the Prospectus or any document incorporated therein by reference contains a misstatement of a material fact or omits to
state a material fact required to be 

 Page 9 
  

 
stated therein or necessary to make any statement therein not misleading, the Issuer shall as promptly as practicable file any required document and prepare
and furnish to MSCO a reasonable number of copies of such supplement or amendment thereto as may be necessary so that the Prospectus, as thereafter delivered to the purchasers of the Registered Securities will not contain a misstatement of a
material fact or omit to state a material fact required to be stated therein or necessary to make any statement therein not misleading. 
 (vi) On or prior to the Registered Share Delivery Date, the Issuer shall enter into an agreement (a “Transfer Agreement”) with MSCO (or any affiliate of MSCO designated by MSCO) in connection with the
public resale of the Registered Securities, substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance reasonably satisfactory to MSCO (or such affiliate), which Transfer
Agreement shall (without limitation of the foregoing): 
 (A) contain provisions substantially similar to those contained in
such underwriting agreements relating to the indemnification of, and contribution in connection with the liability of, MSCO and its affiliates, 
 (B) provide for delivery to MSCO (or such affiliate) of customary opinions (including, without limitation, accounting comfort letters, opinions relating to the due authorization, valid issuance and fully paid and
non-assessable nature of the Registered Securities and the lack of material misstatements and omissions in the Registration Statement, the Prospectus and the Issuer’s filings under the Exchange Act of 1934, as amended and modified (the
“Exchange Act”)); and 
 (C) provide for the payment by the Issuer of all fees and expenses in connection
with such resale, including all registration costs and all fees and expenses of counsel for MSCO (or such affiliate). 
 (vii)
On the Registered Share Delivery Date, a balance (the “Settlement Balance”) shall be established with an initial balance equal to the applicable amount of the relevant Early Settlement Payment. Following the delivery of Early
Settlement Shares or any Make-Whole Shares, Seller shall sell all such Early Settlement Shares or Make-Whole Shares in a commercially reasonable manner. 
 (viii) At the end of each day upon which sales have been made, the Settlement Balance shall be (A) reduced by an amount equal to the aggregate proceeds received by MSCO upon settlement of the sale of such Share,
and (B) increased by an amount (as reasonably determined by the Calculation Agent) equal to MSCO’s funding cost with respect to the then-current Settlement Balance as of the close of business on such day. 
 (ix) If, on any date, the Settlement Balance has been reduced to zero but not all of the Early Settlement Shares have been sold, no
additional Early Settlement Shares shall be sold and MSCO shall promptly deliver to the Issuer (A) any remaining Early Settlement Shares and (B) if the Settlement Balance has been reduced to an amount less than zero, an amount in cash
equal to the absolute value of the then-current Settlement Balance. 
 (x) If, on any date, all of the Early Settlement Shares
have been sold and the Settlement Balance has not been reduced to zero, the Issuer shall promptly deliver to MSCO an additional number of Shares (the “Make-Whole Shares”) equal to (A) the Settlement Balance as of such date
divided by (B) the price per Share as reasonably determined by the Calculation Agent. This clause (x) shall be applied successively until the Settlement Balance is reduced to zero. 
 (xi) If at any time the number of Shares covered by the Registration Statement is less than the number of Registered Securities required
to be delivered pursuant to this Section 8(a) and the 

 Page 10 
  

 
provisions of “Delivery of Early Settlement Shares” in Section 2 above, the Issuer shall, at the request of MSCO, file additional registration
statement(s) to register the sale of all Registered Securities required to be delivered to MSCO. 
 (xii) The Issuer shall
cooperate with MSCO and use its reasonable best efforts to take any other action necessary to effect the intent of the provisions set forth in this Section 8(a). 
 (b) If Issuer timely elects to deliver Early Settlement Shares and Make-Whole Shares by means of a private placement, the following provisions shall apply: 
 (i) all Early Settlement Shares and Make-Whole Shares shall be delivered to the Seller (or any affiliate of the Seller designated by the
Seller) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof; 
 (ii) Seller and any potential purchaser of any such shares from the Seller (or any affiliate of the Seller designated by the Seller) identified by Seller shall have been afforded a commercially reasonable opportunity
to conduct a due diligence investigation with respect to Issuer customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records,
pertinent corporate documents and other information reasonably requested by them) and Buyer shall not disclose material non-public information in connection with such due diligence investigation; provided, however, if Seller is not reasonably
satisfied with such due diligence investigation or no such investigation is afforded to Seller due to circumstances at Buyer that make such investigation impractical, then such dissatisfaction or the failure by Issuer to afford Seller with such
opportunity to conduct a due diligence investigation shall not provide a basis for Seller to refuse to accept the Early Settlement Shares and Make-Whole Shares by means of a private placement; provided, further, for the avoidance of doubt,
that Seller’s dissatisfaction with the due diligence investigation or the failure by Issuer to afford Seller with such opportunity to conduct a due diligence investigation may be used as a factor by MSCO in determining the per share value of
the Early Settlement Shares pursuant to Section 8(b)(v) below; and 
 (iii) an agreement (a “Private Placement
Agreement”) shall have been entered into between Issuer and the Seller (or any affiliate of the Seller designated by the Seller) in connection with the private placement of such shares by Issuer to the Seller (or any such affiliate) and the
private resale of such shares by the Seller (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to
the Seller and the Issuer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating to the indemnification of, and contribution in
connection with the liability of, the Seller and its affiliates, and shall provide for the payment by Issuer of all fees and expenses in connection with such resale, including all reasonable fees and expenses of one counsel for the Seller but not
including any underwriter or broker discounts and commissions, and shall contain representations, warranties and agreements of Issuer and Seller reasonably necessary or advisable to establish and maintain the availability of an exemption from the
registration requirements of the Securities Act for such resales. 
 (iv) If Issuer elects to deliver Early Settlement Shares
to satisfy its payment obligation of an Early Settlement Payment, neither Issuer nor Seller shall take or cause to be taken any action that would make unavailable either (i) the exemption set forth in Section 4(2) of the Securities
Act for the sale of any Early Settlement Shares or Make-Whole Shares by Issuer to the Seller or (ii) an exemption from the registration requirements of the Securities Act reasonably acceptable to the Seller for resales of Early Settlement
Shares and Make-Whole Shares by the Seller. 
  

 Page 11 
  

 (v) On the date requested by MSCO, (A) Issuer shall deliver a number of Early
Settlement Shares equal to the quotient of (I) the relevant Early Settlement Payment divided by (II) a per share value, determined by MSCO in a commercially reasonable manner and which may be based on indicative bids from institutional
“accredited investors” (as defined in Rule 501 under the Securities Act of 1933, as amended (the “Securities Act”)) and (B) the provisions of Sections 8(a)(vii) –(x) shall apply to the Early Settlement Shares delivered
pursuant to this Section 8(b)(v). For purposes of applying the foregoing, the Registered Share Delivery Date referred to in 8(a)(vii) shall be the date on which Issuer delivers the Early Settlement Shares. 
 (vi) For the avoidance of doubt nothing in this Section 8(b) shall be read as requiring the Company to deliver cash in respect of the
settlement of the transactions contemplated by the Agreement. 
 (c) The provisions of Section 8(b) shall apply to any then-current
Settlement Balance if (i) on any given day, Issuer cannot satisfy any of the conditions of Section 8(a) or (ii) for a period of at least ten (10) consecutive Exchange Business Days, MSCO has determined that it is inadvisable to
effect sales of Registered Securities. 
 (d) If Issuer elects to deliver Early Settlement Shares to satisfy its payment obligation of an
Early Settlement Payment, then, if necessary, Issuer shall use its best efforts to cause the number of authorized but unissued shares of Common Stock to be increased to an amount sufficient to permit Issuer to fulfill its obligations to satisfy its
payment obligation of an Early Settlement Payment by delivering Early Settlement Shares. 
 9. Special Provisions for Merger Events. Notwithstanding anything
to the contrary herein or in the Equity Definitions, to the extent that an Announcement Date for a potential Merger Transaction occurs during the term of this Transaction and such Announcement Date does not cause this Transaction to terminate in
whole under the provisions of “Extraordinary Event” in paragraph 2 above: 
 (a) As soon as practicable following the public
announcement of such potential Merger Transaction, Issuer shall provide MSCO with written notice of such announcement; 
 (b) Promptly after
request from MSCO, Issuer shall provide MSCO with written notice specifying (i) Issuer’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the Announcement Date that
were not effected through MSCO or its affiliates and (ii) the number of Shares purchased pursuant to the block purchase proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the Announcement Date. Such
written notice shall be deemed to be a certification by Issuer to MSCO that such information is true and correct. Issuer understands that MSCO will use this information in calculating the trading volume for purposes of Rule 10b-18; and 

(c) MSCO in its sole discretion may extend the Calculation Period to account for any reduction in the number of Shares that could be purchased on each
day during the Calculation Period in compliance with Rule 10b-18 following the Announcement Date. 
 “Merger Transaction”
means any merger, acquisition or similar transaction involving a recapitalization of Issuer as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act. 
 10. Seller Adjustments. In the event that Seller reasonably determines that it is appropriate with regard to 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 Seller, and including, without limitation, Rule 10b-18, Rule 10b-5, Regulation 13D-G and Regulation 14E, 

 Page 12 
  

 
“Requirements”), for Seller to refrain from purchasing Shares or to purchase fewer than the number of Shares Seller would otherwise purchase
on any Trading Day during the duration of this Transaction, then Seller may, in its discretion, elect that the Initial Hedge Period or the Calculation Period, as the case may be, be suspended and, if appropriate, extended with regard to any
Requirements. Seller shall notify the Issuer upon the exercise of Seller’s rights pursuant to this Section 10 and shall subsequently notify the Issuer on the day Seller believes that the circumstances giving rise to such exercise have
changed. If the Initial Hedge Period or the Calculation Period is suspended pursuant to this Section 10, at the end of such suspension Seller shall determine the number of Trading Days remaining in the Calculation Period, as appropriate, and
the terms of this Transaction shall be adjusted as set forth above under “Physical Settlement.” 
 11. Covenants. 
 (a) The Buyer covenants and agrees: 
 (i)(a)
that it will not treat this Transaction, any portion hereof, or any obligation hereunder as giving rise to any interest income or other inclusions of ordinary income; (b) it will not treat the delivery of any portion of the Shares or cash to be
delivered pursuant to this Transaction as the payment of interest or ordinary income; (c) it will treat this Transaction in its entirety as a forward contract for the delivery of such Shares or cash; and (d) it will not take any action
(including filing any tax return or form or taking any position in any tax proceeding) that is inconsistent with the obligations contained in (a) through (c). Notwithstanding the preceding sentence, Buyer may take any action or position
required by law, provided that Buyer delivers to Seller an unqualified opinion of counsel, nationally recognized as expert in Federal tax matters and acceptable to Buyer, to the effect that such action or position is required by a statutory change
or a Treasury regulation or applicable court decision published after the Trade Date; 
 (ii) that during the term of this
Agreement, neither it nor any of its affiliates shall directly or indirectly (which shall be deemed to include the writing or purchase of any cash-settled derivative instrument) purchase Shares (or any security convertible into or exchangeable for
Shares) without the prior written approval of Seller or take any other action that would cause the purchase by Seller of any Shares in connection with this Agreement not to comply with Rule 10b-18 under the Exchange Act (assuming for the purposes of
this paragraph that such Rule were otherwise applicable to such purchases); 
 (iii) to comply with all laws, rules and
regulations applicable to it (including, without limitation, the Securities Act of 1933, as amended (the “Securities Act”) and the Exchange Act) in connection with the transactions contemplated by this Confirmation; 
 (iv) that it is not relying, and has not relied, upon Seller or any of its representatives or advisors with respect to the legal,
accounting, tax or other implications of this Agreement and that it has conducted its own analyses of the legal, accounting, tax and other implications of this Agreement, and that Seller and its affiliates may from time to time effect transactions
for their own account or the account of customers and hold positions in securities or options on securities of the Buyer and that Seller and its affiliates may continue to conduct such transactions during the term of this Agreement; and 

(v) that neither it nor any affiliates shall take any action that would cause Regulation M under the Exchange Act (“Regulation
M”), to be applicable to any purchases of Shares, or any security for which Shares is a reference security (as defined in Regulation M), by Buyer or any affiliated purchasers (as defined in Regulation M) during the Calculation Period unless it
shall have provided notice thereof to Seller pursuant to Section 11(c) below. 
 (b) Seller covenants and agrees that with respect to the purchase of
any Shares in connection with this Agreement (except for any purchases made by Seller during the Calculation Period in connection with dynamic hedge adjustments of the Seller’s exposure to the Transaction as a result of any equity optionality
contained in such Transaction), Seller shall make any such purchase in a manner that Seller reasonably believes, based on the representations and warranties set forth herein and any other information provided to Seller by Buyer, 

 Page 13 
  

 
would meet the requirements of the safe harbor under the provisions of Rule 10b-18 as if such purchases were made by Buyer; provided, however,
that it is understood and agreed that Seller will not be obligated to comply with this paragraph upon the occurrence of a Valuation Date other than the Scheduled Valuation Date or if an Event of Default, Additional Disruption Event, Extraordinary
Event or Additional Termination Event occurs. 
 (c) If Buyer concludes that it will be engaged in a distribution of the Shares for purposes of Regulation M,
Buyer agrees that it will, on one Trading Day’s written notice, direct MSCO not to purchase Shares in connection with hedging the Transaction during the “restricted period” (as defined in Regulation M). If on any Trading Day Buyer
delivers written notice (and confirms by telephone) by 9:00 a.m. New York City Time (the “Notification Time”), then such notice shall be effective to suspend the Calculation Period as of such Notification Time. In the event that Buyer
delivers notice and/or confirms by telephone after the Notification Time, then the Calculation Period shall be suspended effective as of 9:00 a.m. New York City time on the following Trading Day or as otherwise required by law or agreed between
Buyer and Seller. If the Calculation Period is suspended pursuant to this Section 11(c), at the end of such suspension Seller shall determine the number of Trading Days remaining in the Calculation Period, as appropriate, and the terms of this
Transaction shall be adjusted as set forth above under “Physical Settlement.”. 
 12. Representations, Warranties and Acknowledgments. 

(a) The Buyer hereby represents and warrants to Seller that: 
 (i) as of the date hereof, the Buyer (A) is not in possession of any material, non-public information with respect to the Buyer or any of its securities, and is entering into this Agreement in good faith and not
as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 of the Exchange Act and (B) agrees not to alter or deviate from the terms of this Agreement or enter into or alter a corresponding or hedging transaction or position with
respect to the Shares (including, without limitation, with respect to any securities convertible or exchangeable into the Shares) during the term of this Agreement; 
 (ii) the transactions contemplated by this Confirmation have been authorized under Buyer’s publicly announced program to repurchase
Shares; 
 (iii) the Buyer is not entering into this Agreement to facilitate a distribution of the Shares (or any security
convertible into or exchangeable for Shares) or in connection with a future issuance of securities except pursuant to the Buyer’s employee benefit plans and dividend reinvestment plan or other publicly disclosed transaction; 
 (iv) the Buyer is not entering into this Agreement to create actual or apparent trading activity in the Shares (or any security
convertible into or exchangeable for Shares) or to raise or depress the price of the Shares (or any security convertible into or exchangeable for Shares); and 
 (v) the Buyer is as of the date hereof, and after giving effect to the transactions contemplated hereby will be, Solvent. As used in this paragraph, the term “Solvent” means, with respect to a particular
date, that on such date (A) the present fair market value (or present fair saleable value) of the assets of the Buyer is not less than the total amount required to pay the liabilities of the Buyer on its total existing debts and liabilities
(including contingent liabilities) as they become absolute and matured, (B) the Buyer is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal
course of business, (C) assuming consummation of the transactions as contemplated by this Agreement, the Buyer is not incurring debts or liabilities beyond its ability to pay as such debts and liabilities mature, (D) the Buyer is not
engaged in any business or transaction, and does not propose to engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in
which the Buyer is engaged and (E) the Buyer is 

 Page 14 
  

 
not a defendant in any civil action that could reasonably be expected to result in a judgment that the Company is or would become unable to satisfy.

 (b) Seller and the Buyer each hereby acknowledges that any transactions by Seller in the Shares will be undertaken by Seller, as the case may be, as
principal for its own account. All of the actions to be taken by Seller in connection with this Agreement, shall be taken by Seller independently and without any advance or subsequent consultation with the Buyer. 
 (c) It is the intent of the parties that this Confirmation and this Transaction comply with the requirements of Rule 10b5-1(c)(1)(i) (A) and (B) of the
Exchange Act. The parties agree that the Agreement shall be interpreted to comply with the requirements of Rule 10b5-1(c). 
 13. Acknowledgements of Buyer
Regarding Hedging and Market Activity. Buyer agrees, understands and acknowledges that: 
  

	 	(a)	during the period from (and including) the first trading day that occurs after the Trade Date to (and including) the Settlement Date, Seller and its affiliates may buy or sell
Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the transactions contemplated by this
Transaction;

  

	 	(b)	Seller and its affiliates also may be active in the market for the Shares other than in connection with hedging activities in relation to the transactions contemplated by this
Transaction;

  

	 	(c)	Seller shall make its own determination as to whether, when and in what manner any hedging or market activities in the Issuer’s securities shall be conducted and shall do so in
a manner that it deems appropriate to hedge its price and market risk with respect to 10b-18 VWAP; and 

  

	 	(d)	any market activities of Seller and its affiliates with respect to the Shares may affect the market price and volatility of the Shares, as well as the 10b-18 VWAP, each in a manner
that may be adverse to Buyer. 

 14. Indemnification. 
 (a) In the event that Seller becomes involved in any capacity in any action, proceeding or investigation brought by or against any person in connection with any matter referred to in this Agreement, the Buyer will
reimburse Seller for its reasonable legal and other expenses (including the cost of any investigation and preparation) incurred in connection therewith. The Buyer also will indemnify and hold Seller harmless against any losses, claims, damages or
liabilities to which it may become subject in connection with any matter referred to in this Agreement, except to the extent that any such loss, claim, damage or liability results from the gross negligence or bad faith of Seller in effecting the
transactions which are the subject of this Agreement; provided, however, that if it is determined by a court of competent jurisdiction in a final judgment that Seller is not entitled to be indemnified hereunder in connection with such matter,
then Seller shall reimburse the Buyer for any expenses paid pursuant to the first sentence of this Section 14. If for any reason the foregoing indemnification is unavailable to Seller or insufficient to hold it harmless, then the Buyer shall
contribute to the amount paid or payable by Seller as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the Buyer on one hand and Seller on the other hand with respect to such
loss, claim, damage, or liability and any other relevant equitable considerations. The reimbursement, indemnity and contribution obligations of the Buyer under this Section 14 shall be in addition to any liability which the Buyer may otherwise
have, shall extend upon the same terms and conditions to any affiliate of Seller and the partners, directors, officers, agents, employees and controlling persons (if any), as the case may be, of Seller and any such affiliate and shall be binding
upon and inure to the benefit of any successors, assigns, heirs 

 Page 15 
  

 
and personal representatives of the Buyer, Seller, any such affiliate and any such person. The Buyer also agrees that neither Seller nor any of such
affiliates, partners, directors, officers, agents, employees or controlling persons shall have any liability to the Buyer for or in connection with any matter referred to in this Agreement except to the extent that any losses, claims, damages,
liabilities or expenses incurred by the Buyer result from the gross negligence or bad faith of Seller in effecting the transactions that are the subject of this Agreement. The foregoing provisions shall survive any termination or completion of this
Agreement. For the purposes of this Section 14, the term “Seller” shall include MSCO and its affiliates. 
 (b) Subject to
Section 14(c), the reimbursement, indemnity and contribution obligations of the Buyer under Section 14(a) (each, an “Obligation”) shall be paid promptly in cash. 
 (c) In connection with any Obligation under Section 14(b) above, the Buyer, in lieu of making any cash payment as contemplated by that section, may
elect to satisfy such Obligation by delivering Shares to Seller (such Shares, the “Indemnity Shares”) by notifying Seller of such election within one Trading Day of being informed by Seller that such Obligation is due and payable.
The provisions of “Certain Payments and Deliveries by Issuer” in Section 7 above shall apply to such a share settlement of an Obligation as if the relevant Obligation was the “Early Settlement Payment” and the Indemnity
Shares were “Early Settlement Shares”. In order to elect to deliver Indemnity Shares, Issuer must (i) specify whether such Indemnity Shares are to be sold by means of a registered offering or by means of a private placement and
(ii) the conditions described in Section 8 above must be satisfied as if the Indemnity Shares were “Early Settlement Shares” and any additional Shares Issuer delivers to reduce the settlement balance to zero in connection with
this Section 14 were “Make-Whole Shares”. 
 15. The parties hereto agree and acknowledge that Seller is a “financial
participant” within the meaning of Section 101(22) of Title 11 of the United States Code (the “Bankruptcy Code”). The parties hereto further agree and acknowledge that this Transaction is either (i) a “securities
contract” as such term is defined in Section 741(7) of the Bankruptcy Code, in which case each payment and delivery made pursuant to this Transaction is a “settlement payment”, as such term is defined in Section 741(8) of
the Bankruptcy Code, and that Seller is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 546(e) and 555 of the Bankruptcy Code, or (ii) a “swap agreement”, as such term is defined in
Section 101(53B) of the Bankruptcy Code, in which case each party is a “swap participant”, as such term is defined in Section 101(53C) of the Bankruptcy Code, and that Seller is entitled to the protections afforded by, among
other sections, Sections 362(b)(17), 546(g) and 560 of the Bankruptcy Code. 
 16. Seller and Issuer hereby agree and acknowledge that Seller has authorized
the Issuer to disclose this Transaction to any and all persons, and there are no express or implied agreements, arrangements or understandings to the contrary, and authorizes the Issuer to use any information that the Issuer receives or has received
with respect to this Transaction in any manner. 
 17. Treatment in Bankruptcy; No Setoff; No Collateral. 
 (a) In the event the Buyer becomes the subject of proceedings (“Bankruptcy Proceedings”) under the U.S. Bankruptcy Code or any other applicable
bankruptcy or insolvency statute from time to time in effect, any rights or claims of Seller hereunder in respect of this transaction shall rank for all purposes no higher than, but on a parity with, the rights or claims of holders of Shares, and
Seller hereby agrees that its rights and claims hereunder shall be subordinated to those of all parties with claims or rights against the Buyer (other than common stockholders) to the extent necessary to assure such ranking. Without limiting the
generality of the foregoing, after the commencement of Bankruptcy Proceedings, the claims of Seller hereunder shall for all purposes have rights equivalent to the rights of a holder of a percentage of the Shares equal to the aggregate amount of such
claims (the “Claim Amount”) taken as a percentage of the sum of (i) the Claim Amount and (ii) the aggregate fair market value of all outstanding Shares on the record date for distributions made to the holders of such
Shares in the related Bankruptcy Proceedings. Notwithstanding any right it might otherwise have to assert a higher priority claim in any such Bankruptcy Proceedings, Seller shall be entitled to receive a 

 Page 16 
  

 
distribution solely to the extent and only in the form that a holder of such percentage of the Shares would be entitled to receive in such Bankruptcy
Proceedings, and, from and after the commencement of such Bankruptcy Proceedings, Seller expressly waives (i) any other rights or distributions to which it might otherwise be entitled in such Bankruptcy Proceedings in respect of its rights and
claims hereunder and (ii) any rights of setoff it might otherwise be entitled to assert in respect of such rights and claims. 
 (b)
Notwithstanding any provision of this Agreement or any other agreement between the parties to the contrary, neither the obligations of the Buyer nor the obligations of Seller hereunder are secured by any collateral, security interest, pledge or
lien. 
 18. Share Cap. Notwithstanding any other provision of this Agreement to the contrary, in no event shall the Buyer be required to deliver to Seller a
number of Shares that exceeds the Share Cap (as specified in Schedule I), subject to reduction by the number of Shares delivered hereunder by the Buyer on any prior date. 
 19. Account Details: 
  

			
	Account for Payments to MSCO:	  	To be provided separately
		
	Account for Payments to Issuer:	  	To be provided by Issuer

 20. Governing law: The laws of the State of New York. 
  
  

	
	Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this Confirmation and returning it to us by facsimile to the
number provided on the attached facsimile cover page.

 Confirmed as of the date first written above: 
  

							
	APPLERA CORPORATION	 	MORGAN STANLEY & CO. INCORPORATED
				
	By:	 	 /s/ John S. Ostaszewski
	 	By:	 	 /s/ Arunesh Hari

	Name:	 	John S. Ostaszewski	 	Name:	 	Arunesh Hari
	Title:	 	Vice President & Treasurer	 	Title:	 	M.D.

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