Document:

Exhibit 10.2

 

TRANSITION AGREEMENT

 

THIS TRANSITION AGREEMENT (the “Agreement”) is entered into as of November 30, 2011 (the “Effective Date”), by and among Radius Health, Inc., a Delaware corporation (together with any successor thereto, the “Company”), and C. Richard Lyttle, Ph.D.  (the “Executive”).

 

RECITALS

 

A.            The Executive currently serves as the President and Chief Executive Officer of the Company pursuant to that certain offer letter dated July 2, 2004 (the “Offer Letter”).

 

B.            The Executive and the Company mutually desire to transition the Executive from President and Chief Executive Officer of the Company to Chief Scientific Officer of the Company effective as of December 5, 2011 (the “Transition Date”).

 

C.            The Executive and the Company mutually desire that, effective as of the Effective Date, this Agreement will supersede the Offer Letter in its entirety, and the Company shall continue to employ the Executive, and the Executive shall accept such continued employment, on the terms and subject to the conditions set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Term; Employment.

 

(a)           The Company shall continue to employ the Executive as President and Chief Executive Officer from the Effective Date through the Transition Date.  On the Transition Date, the Executive shall transition to become the Chief Scientific Officer of the Company.  As Chief Scientific Officer, the Executive shall have such duties, responsibilities and authority as shall be assigned to the Executive from time to time by the Chief Executive Officer of the Company or the Board.  The Executive shall report directly to the Chief Executive Officer.  The Executive acknowledges and agrees that the transition to Chief Scientific Officer shall not constitute “Good Reason” under the Offer Letter.  Effective as of the Transition Date, the Executive resigns from his position as a director of the Company and shall cease to hold any position (whether as an officer, member of the Board, trustee, fiduciary, or otherwise) with, and shall cease to exercise or convey any authority (actual, apparent, or otherwise) on behalf of, the Company and its subsidiaries, except as otherwise specifically provided in this Agreement.

 

(b)           The Executive’s employment as Chief Scientific Officer hereunder shall be for a period (the “Employment Period”) commencing on the Transition Date and ending on June 1, 2012 (the “Six Month Anniversary”).  After March 1, 2012 (the “Three Month Anniversary”), either the Executive or the Company may terminate

 

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the Employment Period and Executive’s employment at any time and for any reason whatsoever (or for no reason) by providing at least two (2) weeks advance written notice (or such lesser period of time as may be mutually agreed to by the Company and the Executive).  Notwithstanding the foregoing, nothing in this Agreement shall restrict the Company from terminating the Employment Period and the Executive’s employment for Cause at any time (including without limitation prior to the Three Month Anniversary).

 

(c)           During the Employment Period, the Executive shall perform the services required by this Agreement primarily at the Executive’s principal residence, except for travel to the Company’s headquarters as may reasonably be necessary (any such travel to be reimbursed in accordance with the Company’s policies as in effect from time to time).

 

(d)           During the Employment Period, the Executive shall devote all necessary business time and attention to the business and affairs of the Company, and shall use his best efforts, skills, and abilities to promote its interests.  Notwithstanding the foregoing, the Company acknowledges that the Executive currently serves as the Executive Chairman of another business and that he may continue to perform in that role during and following the Employment Period.

 

2.             Compensation and Benefits.

 

(a)           During the Employment Period, the Executive shall continue to receive his base salary at the rate in effect as of immediately prior to the Effective Date (“Base Salary”), which shall be paid to the Executive in accordance with the Company’s standard payroll practices.

 

(b)           The Executive shall remain eligible to receive his annual bonus for calendar year 2011 at the levels previously established for such bonus by the Board and communicated to the Executive, subject to and in accordance with the applicable bonus plans and policies of the Company.

 

(c)           The Executive shall be eligible to earn for calendar year 2012 a discretionary cash performance bonus under the Company’s bonus plan or program applicable to senior executives (the “2012 Bonus”).  The Executive’s target 2012 Bonus shall be forty percent (40%) of the Executive’s Base Salary, but the actual amount of the 2012 Bonus shall be determined on the basis of the attainment of Company performance metrics and/or individual performance objectives, in each case, as established and approved by the Board or the Compensation Committee of the Board in its sole discretion.  Payment of the 2012 Bonus (if any) shall be contingent upon the Executive’s continued employment with the Company through the payment date (other than as provided in Section 3(c)).

 

(d)           During the Employment Period, the Executive shall continue to vest in any options to purchase Company common stock or other equity awards held by the Executive pursuant to the terms of such options and other equity awards.

 

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(e)           During the Employment Period, the Executive will be eligible to participate in all of the employee benefits and benefit plans that the Company generally makes available to its full-time regular employees, including group health plans, life, disability and AD&D insurances, a 401k plan, tuition reimbursement, parking or public transportation and various types of paid time off, subject to the terms and conditions of such benefits and plans, and the Executive will continue to accrue vacation at the same rate as in effect as of the Effective Date.  The Company reserves the right to terminate, modify or add to its benefits and benefit plans at any time.

 

3.             Termination.

 

(a)           Unless sooner terminated, the Executive’s employment with the Company shall automatically terminate on the Six Month Anniversary.

 

(b)           In the event of a termination of the Executive’s employment with the Company for any reason, the Company shall pay the Executive or the Executive’s estate or legal representative (as applicable), within thirty (30) days after the date of the Executive’s termination of employment (the “Date of Termination”), (i) any earned but unpaid Base Salary and accrued but unused vacation as of the Date of Termination and (ii) any unreimbursed business expenses incurred by the Executive prior the Date of Termination, subject to and in accordance with Company policy for senior executives, prior the date of termination.

 

(c)           In the event the Executive’s employment is terminated (i) due to the Executive’s death prior to the Three Month Anniversary or (ii) for any reason other than for Cause after the Three Month Anniversary (including without limitation an automatic termination upon the Six Month Anniversary), (A) the Executive shall be entitled to receive the 2012 Bonus, pro rated based on the number of days in the calendar year through the Date of Termination, payable within sixty (60) days after the Date of Termination and (B) any vested and outstanding options to purchase shares of the Company’s common stock held by the Executive on the Date of Termination shall remain exercisable until the later to occur of (1) the first anniversary of the Date of Termination or (2) the date that is 30 days after the date on which the Company’s common stock first becomes listed on a national stock exchange; provided, however, that in no event shall any stock option remain exercisable beyond the original expiration date of such option and provided, further, that each such option shall be terminable in accordance with the terms of the equity plan pursuant to which it was granted.  Notwithstanding the foregoing, it shall be a condition to the Executive’s right to receive the amounts provided in this Section 3(c) that the Executive execute and deliver to the Company an effective release of claims in substantially the form attached hereto as Exhibit A (the “Release”) within thirty (30) days following the Date of Termination.

 

(d)           The parties agree that, except as expressly set forth in this Agreement or as determined by the terms of any employee benefit plan in which the Executive was participating as of the Executive’s termination of employment, or as otherwise

 

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required by law, the Executive will not be entitled to receive any compensation or benefits after or in connection with the termination of the Executive’s employment with the Company for any reason.

 

4.             Additional Agreements.  The parties acknowledge and agree that they have entered into an Indemnification Agreement, and that such Indemnification Agreement shall remain in full force and effect in accordance with its terms.  As a condition to this Agreement, the Executive shall enter into a Confidentiality and Non-Competition Agreement with the Company substantially in the form set forth on Exhibit B (the “Noncompetition Agreement”).

 

5.             Release.  The Executive irrevocably waives, releases and discharges each of the Company and its respective affiliates, stockholders, partners, officers, directors, employees, agents, representatives, successors and assigns (collectively, the “Company Parties”) from any and all liabilities and obligations to the Executive of any kind or nature whatsoever (including in respect of any rights of contribution or indemnification) with respect to the Company’s employment of the Executive prior to the Effective Date and the transition of Executive’s employment with the Company as contemplated by this Agreement, in each case, whether absolute or contingent, liquidated or unliquidated, and whether arising under any agreement or understanding or otherwise at law or equity, and the Executive agrees not to seek to recover any amounts in connection therewith or thereunder from any of the Company Parties.  Notwithstanding the foregoing, this release shall not operate to release (a) any claims which the Executive may have under this Agreement and (b) the ability of the undersigned to assert any Claims that he cannot be required to release as a matter of law.

 

6.             Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

 

(a)           “Board” shall mean the Board of Directors of the Company or similar governing body of the Company.

 

(b)           “Cause” shall mean any one or more of the following: (i) the Executive’s willful and continuing failure to perform his substantial responsibilities to the Company as Chief Scientific Officer (other than any such failure resulting from incapacity due to physical or mental illness), for a period of thirty (30) days after receiving notice from the Board that sufficiently details the manner in which the Board believes that the Executive has not substantially performed these responsibilities; (ii) the Executive’s willful misconduct, fraud, or material dishonesty that results in material harm to the Company; (iii) the Executive’s breach of fiduciary duty to the Company; (iv) the Executive’s willful disregard of the rules or policies of the Company or directions from the Board that results in material harm to the Company; or (v) the Executive’s material breach of the Noncompetition Agreement or any other agreement executed by the Executive with the Company.

 

(c)           “Company Entity” shall mean the Company, any direct or indirect subsidiary of the Company or any successor or purchaser of any of the foregoing.

 

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7.             General Provisions.

 

(a)           Notices.  All notices and other communications required or permitted hereunder shall be in writing and shall be deemed given when (i) delivered personally, (ii) delivered by certified or registered mail, postage prepaid, return receipt requested, or (iii) delivered by overnight courier (provided that a written acknowledgment of receipt is obtained by the overnight courier) to the party concerned at the address indicated below or to such changed address as such party may subsequently give such notice of:

 

If to the Company:

 

Radius Health, Inc.

201 Broadway, 6th Floor

Cambridge, MA 02139

Attn: Chairman of the Board

Facsimile: (617) 551-4701

 

With a copy (which shall not constitute notice) to:

 

Latham & Watkins LLP

John Hancock Tower, 20th Floor

200 Clarendon Street

Boston, MA 02116

Attn:  Peter N. Handrinos, Esq.

Facsimile:  (617) 948-6001

 

If to the Executive:

 

at the last residential address known by the Company

 

or at any other address as any party shall have specified by notice in writing to the other party.

 

(b)           Successors and Binding Agreement.

 

(i)            This Agreement shall be binding upon and inure to the benefit of the Company and any successor of or to the Company, including, without limitation, any purchaser of all or substantially all of the assets of the Company.

 

(ii)           The Company will require any successor to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would have been required to perform it if no such succession had taken place.

 

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(iii)          For purposes of this Agreement, the “Company” shall mean both the Company, as defined in the Recitals, and any successor of or to the Company.

 

(iv)          This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, and/or legatees.  The Executive agrees that the Executive’s obligations under this Agreement are personal in nature and, without the consent of the Company, he may not assign, transfer, or delegate this Agreement or any rights or obligations hereunder, provided, that upon the Executive’s death, the Executive may assign the Executive’s rights hereunder to the Executive’s estate or heirs.

 

(c)           Complete and Final Agreement.  Effective as of the Effective Date, this Agreement, together with the Noncompetition Agreement and Indemnification Agreement, constitutes the complete and final agreement by and between the parties, and replaces, terminates and supersedes any and all prior and contemporaneous negotiations, representations, understandings or agreements between the Executive and the Company (or any predecessor thereof) relating to the matters herein (including without limitation the Offer Letter).  The Executive hereby agrees that as of the Effective Date any other such agreement or understanding is hereby terminated and shall be of no further force or effect.  The parties further intend that no extrinsic evidence whatsoever may be introduced in any judicial, administrative or other legal proceeding to vary the terms of this Agreement.  This Agreement may be modified only by a further writing that is duly executed by both parties.

 

(d)           Construction / Counsel.  This Agreement shall be deemed drafted equally by both the parties.  Its language shall be construed as a whole and according to its fair meaning, with no presumption that any language shall be construed against any party.  Paragraph headings used herein are for convenience and are not part of this Agreement and shall not be used in construing it.  The Executive acknowledges that he has had adequate opportunity to consult with legal or other counsel of the Executive’s choosing prior to execution of this Agreement.

 

(e)           Governing Law.  Any dispute, controversy, or claim of whatever nature arising out of or relating to this Agreement or breach thereof shall be governed by and interpreted under the laws of the Commonwealth of Massachusetts, without regard to conflict of law principles.

 

(f)            Validity.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall nevertheless remain in full force and effect.  Further, the parties agree that any invalid, illegal or unenforceable provision or restriction shall be deemed modified so that it shall be enforced to the greatest extent permissible under law.  To the extent that any court of competent jurisdiction determines any provision or restriction herein to be overly broad, or

 

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unenforceable, such court is hereby empowered and authorized to limit such provisions or restrictions so that it is enforceable for the longest duration of time, within the largest geographical area and with the broadest scope, as permitted by law.

 

(g)           Survival of Provisions.  Notwithstanding any other provision of this Agreement, the parties’ post-termination obligations and the parties’ other respective rights shall survive any termination or expiration of this Agreement or the termination of the Executive’s employment for any reason whatsoever.

 

(h)           Waiver.  No provision of this Agreement may be modified, waived, or discharged unless such modification, waiver, or discharge is agreed to in writing signed by the Executive and the Company.  No waiver by either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

 

(i)            Withholding.  All amounts payable under this Agreement shall be subject to reduction to reflect such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

(j)            Section 409A.

 

(i)            To the extent applicable, this Agreement shall be interpreted and applied consistent and in accordance with Section 409A of the Code.  If, however, the parties determine that any compensation or benefits payable under this Agreement may be or become subject to Section 409A of the Code, the Company and the Executive shall cooperate to adopt such amendments to this Agreement or to adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take such other actions, as the parties mutually determine to be necessary or appropriate to (A) exempt the compensation and benefits payable under this Agreement from Section 409A of the Code and/or preserve the intended tax treatment of such compensation and benefits, or (B) comply with the requirements of Section 409A of the Code.  For purposes of Section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment.

 

(ii)           Notwithstanding anything to the contrary in this Agreement, if at the time of the Executive’s termination of employment with the Company, the Executive is a “specified employee” as defined in Section 409A of the Code, as determined by the Company in accordance with Section 409A of the Code, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company will defer the

 

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commencement of the payment of any such payments or benefits hereunder (without any reduction in the payments or benefits ultimately paid or provided to the Executive) until the date that is at least six (6) months following the Executive’s termination of employment with the Company (or the earliest date permitted under Section 409A of the Code), whereupon the Company will pay the Executive a lump-sum amount equal to the cumulative amounts that would have otherwise been previously paid to the Executive under this Agreement during the period in which such payments or benefits were deferred.  Thereafter, payments will resume in accordance with this Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

 

 

	
 
    	
Radius   Health, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kurt C. Graves
    
	
 
    	
Name:   Kurt C. Graves
    
	
 
    	
Title:   Chairman of the Board of Directors
    
	
 
    	
 
    
	
 
    	
Date:   November 30, 2011
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   C. Richard Lyttle
    
	
 
    	
C.   Richard Lyttle, Ph.D.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date:   November 30, 2011
    

 

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Exhibit A

 

General Release and Waiver

 

The undersigned irrevocably waives, releases and discharges each of the Company and its respective affiliates, stockholders, partners, officers, directors, employees, agents, representatives, successors and assigns (collectively, the “Company Parties”) from any and all liabilities and obligations to the undersigned of any kind or nature whatsoever (including in respect of any rights of contribution or indemnification) with respect to the Company’s employment of the undersigned and the undersigned’s termination of employment with the Company, in each case, whether absolute or contingent, liquidated or unliquidated, and whether arising under any agreement or understanding or otherwise at law or equity, and the undersigned agrees not to seek to recover any amounts in connection therewith or thereunder from any of the Company Parties.  Notwithstanding the foregoing, this release shall not operate to release (a) any claims which the undersigned may have to payments or benefits under Section 3(c) of that certain Transition Agreement, dated as of November 30, 2011, between the Company and the undersigned and (b) the ability of the undersigned to assert any Claims that he cannot be required to release as a matter of law.

 

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
C.   Richard Lyttle, Ph.D.
    

 

 

Exhibit B

 

Form of Noncompetition Agreement

 

 

Confidentiality and Non-Competition Agreement

 

In consideration for the agreement of Radius Health Inc., its subsidiaries, affiliates, successors or assigns (together the “Company”) to employ me as an employee or consultant and my receipt of the compensation now and hereafter paid to me by the Company, I agree as follows:

 

1.   Definition of Confidential Information.  I acknowledge that I may be furnished or have access to confidential, proprietary or trade secret information relating to the Company’s past, present or future (i) products, processes, formulas, patterns, compositions, compounds, projects, specifications, know how, research data, clinical data, personnel data, compilations, programs, devices, methods, techniques, inventions, software code, developments, documentation, original works of authorship, designs and technical data, and improvements thereto (collectively, “Technology”); (ii) research and development activities, (iii) marketing, business or business development activities, including without limitation prospective or actual bids or proposals, pricing information and financial information; (iv) customers or suppliers; or (v) other administrative, management, planning, financial, marketing, purchasing or manufacturing activities.  All of this type of information, whether it belongs to the Company or was provided to the Company by a third party with the understanding that it be kept confidential, and any documents, diskettes or other storage media, or other materials or items containing this type of information, are proprietary and confidential to the Company (“Confidential Information”).

 

2.   Obligations.  I agree to preserve and protect the confidentiality of Confidential Information both during and after my employment with the Company.  In addition, I agree not to, at any time during the term of this Confidentiality and Non-Competition Agreement (this “Agreement”) or thereafter, (i) disclose or disseminate Confidential Information to any third party, including without limitation employees or consultants of the Company without a legitimate business need to know; (ii) remove Confidential Information from the Company’s premises or make copies of Confidential Information, except as required to perform my job; or (iii) use Confidential Information for my own benefit or for the benefit of any third party.  I also agree to take all actions necessary to avoid unauthorized disclosure and otherwise to maintain the confidential or proprietary nature of such Confidential Information.  If I am not certain whether or not information is confidential, I will treat that information as Confidential Information until I have verification from the Company’s Personnel Officer that the information is not Confidential Information.

 

3.   Exceptions.  The Company agrees that the obligations in Section 2 do not apply to any information that I can establish (i) has become publicly known without a breach of this Agreement by me or a third party’s breach of an agreement to maintain the confidentiality of the information; or (ii) was developed by me prior to the date this Agreement is signed, and prior to the date any earlier Confidentiality Agreement of the Company was signed, if the date of development can be established by documentary evidence.  For the purposes of clause (i) of the preceding sentence, Confidential Information will be deemed to have become publicly known only if I can establish that all material features comprising such information have become publicly known.

 

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4.   Former Employer Information.  I agree that I will not, during my employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former or current employer or any other person or entity and that I will not bring onto the premises of the Company any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.

 

5.   Inventions and Works Retained and Licensed.  I have attached hereto, as Exhibit A, a list describing all Technology which was created, made, conceived, developed or reduced to practice (collectively, “Developed”) by me, solely or jointly,  prior to my employment with the Company (collectively referred to as “Prior Works or Inventions”), which belong to me, which relate to the Company’s business, products, or research and development, and which are not assigned to the Company hereunder, or, if no such list is attached, I represent that there are no such Prior Works or Inventions.  If, in the course of my employment with the Company, I incorporate into a Company product, process or machine, or otherwise use for the benefit of the Company, a Prior Work or Invention, whether or not listed, owned by me or in which I have an interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, assignable, irrevocable, perpetual, worldwide license to make, have made, modify, reproduce, distribute, prepare derivative works of, use, import, offer to sell, sell and otherwise exploit such Prior Work or Invention, including without limitation as part of or in connection with such product, process or machine or other use of the same.

 

6.   Ownership of Work Product.

 

(a)  I agree that the Company owns all right, title and interest in, including without limitation all trade secrets, patent rights, copyrights, trademarks, and other intellectual property rights (collectively, “Intellectual Property Rights”) in the following works that I Develop, solely or jointly, during and for one (1) year after termination of my employment with the Company:  (i) Technology that is created using the Company’s facilities, supplies, information, trade secrets or time, (ii) Technology that relates directly or indirectly to or arises out of the actual or proposed business of the Company, including, without limitation the research and development activities of the Company, (iii) Technology that relates directly or indirectly to or arises out of any task assigned to me or work I perform for the Company  or (iv) Technology that is based on Confidential Information (collectively “Work Product”).  Because any Work Product will inevitably be based upon or somehow involve the Company’s business, products, services or methodologies, I agree that any Work Product will belong to the Company even if I Develop it on my own time, using my own equipment, whether on the Company’s premises or elsewhere.  I will promptly provide full written disclosure to an officer of the Company of any Work Product I Develop, solely or jointly, during the term and for a period of one (1) year thereafter.  I hereby irrevocably assign and agree to assign to the Company the ownership of, and all Intellectual Property Rights in, the Work Product.  The Company will have the right to hold in its own name all rights in the Work Product, including without limitation all Intellectual Property Rights therein.  I also waive all claims to moral rights in any Work Product.

 

(b)  I agree to cooperate fully with the Company, both during and after my employment with the Company, with respect to the procurement, maintenance and enforcement of copyrights, patents and other Intellectual Property Rights (both in the United States and foreign countries) relating to Work Product.  I agree to execute and deliver all papers, including, without limitation,

 

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copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers of attorney, which the Company may deem necessary or desirable to protect its rights and interests in any Work Product.  I further agree that if the Company is unable, after reasonable effort, to secure my signature on any such papers, any executive officer of the Company shall be entitled to execute any such papers as my agent and attorney-in-fact, and I hereby irrevocably designate and appoint each executive officer of the Company as my agent and attorney-in-fact to execute any such papers on my behalf, and to take any and all actions as the Company may deem necessary or desirable to protect its rights and interests in any Work Product, under the conditions described in this sentence.

 

7.   Maintenance of Records.  I agree to keep and maintain adequate and current written records of all Work Product made by me (solely or jointly with others) during the term of my employment with the Company.  The records will be in the form of notes, sketches, drawings, and any other format that may be specified by the Company.  The records will be available to and remain the sole property of the Company at all times.

 

8.   Return of Confidential Information.  I agree to return to the Company all Confidential Information in my possession, custody or control immediately upon my termination, or earlier, from the Company for any reason, if the Company requests.

 

9.   Notification of New Employer.  In the event I leave the employ of the Company for any reason, I hereby grant consent to notification by the Company to my new employer about my rights and obligations under this Agreement.

 

10.   Noncompetition; Nonsolicitation of Employees.  In order to protect the value of any Confidential Information, I agree to the following provisions against unfair competition, which I acknowledge represent a fair balance of the Company’s rights to protect its business and my right to pursue employment:

 

(i)  Except for the continuation of my current service as the Executive Chairman of another business, which, for the avoidance of doubt, I may continue during and after my employment or other service with the Company, while I am employed by the Company and for a period of one (1) year immediately following termination of such employment (for any reason whatsoever, whether voluntary or involuntarily), I agree that I will not, whether alone or as a partner, officer, director, consultant, agent, representative, employee or security holder of any company or their commercial enterprise, directly or indirectly engage in, have an equity interest in, interview for a potential employment or consulting relationship with or manage, provide services to or operate any person, firm, corporation, partnership, association, other entity or business or other activity anywhere in the world that engages in business that is competitive with or renders services to any firm or business organization which competes with the business of the Company, which business includes, without limitation, the research, discovery and/or development of therapeutics to treat osteoporosis or hot flashes, or any other therapeutics that the Company is actively engaged in at the time of termination of my employment (the “Company’s Business”); provided, that the Company’s Business shall not include any business that the Company has not taken more than de minimis steps to engage in at the time of the termination of my employment.  The foregoing prohibition shall not prevent my employment or engagement after termination if such employment or engagement, in any capacity, does not involve work or

 

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matters related to the Company’s Business as long as the entity (including its affiliates) that I become employed with or engaged by is primarily involved in businesses that are not related to the Company’s Business and so long as I do not work or have contact with, either directly or indirectly, any business unit of such an entity that is engaged in the Company’s Business.  I shall be permitted to own securities of a public company not in excess of five (5%) of any class of such securities and to own stock partnership interests or other securities of any entity not in excess of five (5%) of any class of such securities and such ownership shall not be considered to be competition with the Company.

 

(ii)  While I am employed at the Company and for a period of one (1) year immediately following termination of such employment (for any reason whatsoever, whether voluntary or involuntarily), I agree that I will not (A) directly or indirectly solicit, recruit or induce any employee, customer, subscriber, supplier, vendor or business affiliate of the Company to terminate its employment or other arrangement with the Company or otherwise alter its relationship with the Company or (B) directly or indirectly, for myself or any other person or entity, solicit or recruit any employee of the Company to work for a third party other than the Company or hire any such employee during the employee’s employment with the Company and for a period of twelve months following the employee’s employment with the Company or engage in any activity that would cause or encourage any employee to violate any agreement with the Company.

 

(iii) In the event the terms of this Section 10 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action.

 

11. Representations and Warranties.  I represent and warrant that (i) I am able to perform the duties of my position and that my ability to work for the Company is not limited or restricted by any agreements or understandings between me and other persons or companies; (ii) I will not disclose to the Company, its employees, consultants, clients, teaming partners or suppliers, or induce any of them to use or disclose, any confidential information or material belonging to others, except with the written permission of the owner of the information or material; and (iii) any information, material or product I create or develop for, or any advice I provide to, the Company, its employees, consultants, clients, teaming partners or suppliers, will not rely or be based on confidential information or trade secrets I obtained or derived from a source other than the Company.  I agree to indemnify and hold the Company harmless from damages, claims, costs and expenses based on or arising from the breach of any agreement or understanding between me and another person or company or from my use or disclosure of any confidential information or trade secrets I obtained from sources other than the Company.

 

12. Damages and Injunctive Relief.  I acknowledge and agree that:

 

(i)    My obligations under this Agreement have a unique and substantial value to the Company and I remain obligated even if I voluntarily or involuntarily leave the Company’s

 

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employment.  I understand that if I violate this Agreement during or after my employment, the Company may be able to recover monetary damages from me and/or the other relief described below.

 

(ii)   I agree that a violation or even a threatened violation of this Agreement  may result in irreparable harm to the Company and its goodwill, the exact amount of which may be difficult or impossible to ascertain, and monetary damages alone may not completely compensate the Company for the harm.  Accordingly, the Company may seek an injunction prohibiting me from violating this Agreement, an order requiring me to render specific performance of the Agreement, and/or any other remedy which may be available at law or in equity.

 

13. Miscellaneous Provisions.

 

(i)    No failure or delay to act by the Company will waive any right, remedy or power contained in this Agreement.  Any waiver by the Company must be in writing and signed by an officer of the Company to be effective.

 

(ii)   The provisions of this Agreement are applicable to Confidential Information and Work Product disclosed, developed or proprietary before or after I sign this Agreement.

 

(iii)  This Agreement is to be construed according to its fair meaning and not strictly for or against either party.

 

(iv)  This Agreement will be governed by the laws of the Commonwealth of Massachusetts without regard to its conflicts of laws provisions that would result in the application of the laws of any other jurisdiction.  Suit to enforce any provision of this Agreement or to obtain any remedy with respect hereto may be brought in a courts of the Commonwealth of Massachusetts and for this purpose I expressly consent to the jurisdiction of said courts.

 

(v)   If any provision of this Agreement conflicts with the law of the Commonwealth of Massachusetts or if any provision is held invalid by a court with jurisdiction over the parties to this Agreement, the provision will be deemed to be restated to reflect as nearly as possible the parties’ original intentions in accordance with applicable law, and the remainder of the Agreement will remain in full force and effect.  If it is not possible to restate the provision in a legal and valid manner, then the provision will be deemed not to be a part of the Agreement and the remaining provisions will remain in full force and effect.

 

(vi)  This document constitutes the entire agreement between the Company and me concerning the matters addressed in this Agreement and it supersedes any prior agreement concerning those matters.  This Agreement may not be changed in any respect except by a written agreement signed by both parties.  Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.

 

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(vii) All remedies provided in this Agreement are cumulative and in addition to all other remedies which may be available at law or in equity.

 

 

	
Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Print   Name:
    	
C.   Richard Lyttle, Ph.D.
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
THE   COMPANY
    	
RADIUS   HEALTH, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

17

 

Exhibit A

 

None.Exhibit 10.1

 

JPMORGAN CHASE BANK, N.A.

J.P. MORGAN SECURITIES LLC

383 Madison Avenue

New York, NY 10179

 

CONFIDENTIAL

 

November 29, 2011

 

TE Connectivity Ltd.

Tyco Electronics Group S.A.

17, bd Grande-Duchesse Charlotte
 L-1331 Luxembourg
 Attention: Thomas G. Ernst, Vice President & Assistant Treasurer

 

Project Burgundy
 US$700,000,000 Bridge Loan Facility

Commitment Letter

 

Ladies and Gentlemen:

 

TE Connectivity Ltd., a company organized under the laws of Switzerland (the “Guarantor”), and Tyco Electronics Group S.A., a company organized under the laws of the Grand Duchy of Luxembourg (the “Borrower” and, together with the Guarantor, “you”), have advised JPMorgan Chase Bank, N.A. (“JPMCB”) and J.P. Morgan Securities LLC (“JPMorgan” and, together with JPMCB, “we”, “us” or the “Commitment Parties”) that you intend to cause an indirect wholly owned subsidiary of the Borrower to acquire (the “Acquisition”) all the issued and outstanding equity interests of a company previously identified to us as “Burgundy” (the “Acquired Company”) and to consummate the other Transactions (such term and each other capitalized term used but not defined herein having the meaning assigned to it in the Summary of Principal Terms and Conditions attached as Exhibit A hereto (the “Term Sheet”)).  In that connection, you have requested that JPMorgan agree to structure and arrange a senior unsecured 364-day bridge loan facility in the principal amount of US$700,000,000 (as such amount may be reduced as provided under “Optional Commitment Reductions” and “Mandatory Commitment Reduction and Prepayment” sections of the Term Sheet) (the “Facility”) to finance the Acquisition and the other Transactions and that JPMCB commit to provide the entire amount of the Facility.

 

1.             Commitment.

 

In connection with the foregoing and subject to the terms and conditions set forth or referred to in this commitment letter (together with the Term Sheet (including the Annex thereto)), this “Commitment Letter”), JPMCB is pleased to advise you of its commitment to provide the entire principal amount of the Facility.  You acknowledge and agree that the amount of the Facility, and of JPMCB’s commitment hereunder, will be reduced as provided under

 

 

“Optional Commitment Reductions” and “Mandatory Commitment Reduction and Prepayment” sections of the Term Sheet upon the occurrence of any of the events described therein at any time after the date hereof.

 

2.             Titles and Roles.

 

JPMCB is pleased to inform you that it hereby agrees to act, and you hereby appoint JPMCB to act, as sole administrative agent for the Facility for a syndicate of lenders that will participate in the Facility (together with JPMCB, the “Lenders”).  In addition, JPMorgan is pleased to inform you that it hereby agrees to act, and you hereby appoint JPMorgan to act, as sole lead arranger and sole bookrunner for the Facility (in such capacities, the “Arranger”).  At the Arranger’s option (in consultation with the Borrower), JPMCB, JPMorgan and/or one or more of their respective affiliates may also be designated with such other titles in respect of the Facility as may be deemed appropriate or desirable by the Arranger (in consultation with the Borrower).  The Arranger will perform the duties, and exercise the authority, customarily performed by it in such role, including exclusive management of the syndication of the Facility.  In connection with the syndication of the Facility, the Arranger shall have the right to award one or more of the roles or titles described above, or such other titles as may be determined by the Arranger, to one or more other Lenders or affiliates thereof, in each case as determined by the Arranger (in consultation with the Borrower), it being understood that notwithstanding any such award, JPMorgan will have “left” placement in any and all marketing materials or other documentation used in connection with the Facility and shall hold the leading role and responsibilities conventionally associated with such “left” placement.  You agree that, except as contemplated above, no other agents, co-agents, arrangers or bookrunners will be appointed, no other titles will be awarded and no compensation (other than that expressly contemplated by this Commitment Letter and the Fee Letter referred to below) will be paid in connection with the Facility unless you and we shall so agree.

 

3.             Syndication.

 

JPMCB reserves the right, prior to or after the execution of definitive documentation for the Facility (the “Credit Documentation”), to syndicate all or a portion of its commitment hereunder to one or more Lenders (which shall be identified by the Arranger subject to your approval as set forth below) pursuant to a syndication to be managed exclusively by the Arranger.  JPMCB shall determine in consultation with you whether and when syndication of the Facility shall commence in light of the progress of the syndication of the New Credit Facility.  All aspects of the syndication of the Facility, including, without limitation, timing, potential syndicate members to be approached, titles, initial and final allocations and division of fees, shall be determined by the Arranger in consultation with you; provided that each potential syndicate member to be approached must be approved by you (such approval not to be unreasonably withheld, delayed or conditioned) (it being agreed that each person that is currently a “Lender”, or hereafter becomes a “Lender” with your consent, under the Existing Credit Agreement is hereby approved by you (each, a “Permitted Assignee”)).

 

In the event that JPMCB elects (in consultation with you) to commence syndication of the Facility, then until the earlier of (a) the completion of a successful syndication of the Facility, as mutually determined by the Arranger and the Borrower, and (b) the date that is 60 days following the Closing Date (such earlier date, the “Syndication End Date”), you agree to

 

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actively assist the Arranger in completing a syndication that is reasonably satisfactory to us, including, without limitation, by promptly preparing and providing the Arranger with such information with respect to the Guarantor and its subsidiaries, in each case including financial information, as the Arranger may reasonably deem necessary to complete a successful syndication of the Facility.  Such assistance shall include, (a) your using your commercially reasonable efforts to ensure that any syndication efforts benefit materially from your existing lending and investment banking relationships, (b) direct contact between senior management, representatives and advisors of you, on the one hand, and the proposed Lenders and rating agencies identified by the Arranger, on the other hand, at times and places reasonably requested by the Arranger and consented to by the Borrower (such consent not to be unreasonably withheld, delayed or conditioned), (c) assistance by you in the prompt preparation of a Confidential Information Memorandum for the Facility and other marketing materials and information reasonably deemed necessary by the Arranger to complete a successful syndication of the Facility for delivery to potential syndicate members and participants, in each case in form and substance customary for transactions of this type and otherwise reasonably satisfactory to the Arranger, including, without limitation, estimates, forecasts, projections and other forward-looking financial information prepared by the Guarantor regarding the future consolidated performance of the Guarantor and its subsidiaries (including projections for the fiscal years 2012 and 2013 that include the Acquired Company and its subsidiaries in the form of such projections delivered to and approved by the Arranger on or prior to the date hereof) (collectively, the “Projections”), and (d) the hosting, with the Arranger, of one or more meetings or conference calls with prospective Lenders at the request of the Arranger.  You further agree that prior to, or promptly after, the announcement of the Acquisition you will advise each of Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Group, a division of The McGraw Hill Corporation (“S&P”) of the Transactions, including the nature of the contemplated financing therefor.  You also agree that, until the Syndication End Date, you and your subsidiaries will not issue, sell, offer, place or arrange, or engage in any discussions with respect to any of the foregoing, any debt securities or commercial bank or other credit facilities of the Guarantor, the Borrower or their respective subsidiaries, other than (i) the Facility, (ii) the New Credit Facility and the New Notes (it being understood that the amount thereof may exceed the aggregate principal amount of the Facility), (iii) indebtedness under the existing commitments available under the Existing Credit Agreement, (iv) working capital and overdraft facilities provided to the Borrower and its subsidiaries in the ordinary course of business and (v) commercial paper financings in the ordinary course of business, without the prior written consent of the Arranger.  Without limiting your obligations to assist with the syndication efforts as set forth herein, JPMCB agrees that the completion of a successful syndication is not a condition to the initial funding under the Facility.

 

It is further agreed that, in the event that JPMCB elects (in consultation with you) to commence syndication of the Facility, you will, at the request of the Arranger and upon delivery by the Arranger to you of a draft credit agreement for the Facility prepared by our counsel, negotiate the definitive version of such credit agreement (consistent with this Commitment Letter, the Term Sheet and the Fee Letter) promptly and in good faith and execute and deliver the definitive credit agreement for the Facility (and such related documents as shall be required in connection with the execution thereof) at the earliest practicable date following delivery to you of such draft credit agreement.

 

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4.             Information.

 

You represent, warrant and covenant that (a) (i) no written information that has been or is hereafter furnished by you or on your behalf in connection with the transactions contemplated hereby (other than the Projections) and (ii) no other information given at any due diligence call or any information meetings for potential syndicate members and, in each case, supplied or approved by you or on your behalf (other than the Projections) (such written information and other information (other than the Projections) being referred to herein collectively as the “Information”) taken as a whole contained (or, in the case of Information furnished after the date hereof, will contain), as of the time it was (or hereafter is) furnished, any material misstatement of fact or omitted (or will omit) as of such time to state any material fact necessary to make the statements therein taken as a whole not misleading, in the light of the circumstances under which they were (or hereafter are) made, and (b) the Projections that have been or are hereafter furnished by you or on your behalf in connection with the transactions contemplated hereby have been (or, in the event Projections are furnished after the date hereof, will be) prepared in good faith based upon accounting principles consistent in all material respects with your historical audited financial statements (except as otherwise expressly disclosed in the Projections) and upon assumptions believed by you to be reasonable at the time made and at the time the Projections are so furnished (it being understood that projections by their nature are inherently uncertain and no assurances are being given that the results reflected in the Projections will be achieved); provided that, with respect to any Information or Projections prepared by or relating to the Acquired Company or its subsidiaries, the foregoing representations are made only to the best of your knowledge.  You agree that if at any time prior to the Syndication End Date any of the representations and warranties in the preceding sentence would be incorrect in any material respect if the Information and Projections were being furnished (and, in the case of Projections, the applicable assumptions were being made), and such representations and warranties were being made, at such time, then you will promptly supplement the Information and the Projections so that such representations or warranties will be correct in all material respects under those circumstances.  You understand that, in arranging and syndicating the Facility, the Arranger will be entitled to use and rely on the Information and the Projections without responsibility for independent verification thereof.  Before distribution of any Information or the Projections to prospective Lenders, you shall provide us with a customary letter authorizing the dissemination of such Information; provided that any such distribution shall be subject to the confidentiality provisions contained in clause (e) of the second paragraph of Section 9 hereof.

 

5.             Conditions Precedent.

 

The commitment of JPMCB and the agreements of JPMCB and JPMorgan hereunder are subject to only (a) the negotiation, execution and delivery of definitive documentation for the Facility consistent with this Commitment Letter, the Term Sheet and the Fee Letter, prepared by our counsel and satisfactory to us and you, (b) your performance of your obligations set forth in Sections 2, 3 and 4 of this Commitment Letter, except to the extent any nonperformance thereof has not adversely affected the syndication of the Facility, and (c) the other conditions set forth or referred to herein and in the Term Sheet.

 

Notwithstanding anything in this Commitment Letter, the Term Sheet or the Fee Letter to the contrary (but subject to the satisfaction of the conditions set forth or referred to

 

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herein), (a) the only representations relating to the Guarantor, the Borrower, the Acquired Company and their respective subsidiaries the making of which shall be a condition to availability of the Facility on the Funding Date shall be (i) the representations made by the Acquired Company in the Acquisition Agreement, but only to the extent that you (or any of your subsidiaries) have the right under the Acquisition Agreement not to consummate the Acquisition as a result of such representations in the Acquisition Agreement being inaccurate, and (ii) the Specified Representations (as defined below) and (b) the terms of the Credit Documentation shall be negotiated by the parties hereto in good faith not to be in a form such that the Facility is not available on the Funding Date even if the conditions set forth or referred to herein are satisfied.  For purposes hereof, “Specified Representations” means the representations and warranties set forth in the Credit Documentation with respect to organization and power, authorization, due execution and delivery and enforceability, no conflicts, Investment Company Act status and margin regulations.  The provisions of this paragraph are referred to as the “Certain Funds Provision”.

 

6.             Fees.

 

As consideration for JPMCB’s commitment hereunder and our agreements to perform the services described herein, you agree to pay to us the fees as set forth in the arranger fee letter dated the date hereof and delivered herewith (the “Fee Letter”).

 

7.             Expenses; Indemnification.

 

To induce the Commitment Parties to issue this Commitment Letter and to proceed with the Credit Documentation, you hereby agree that all reasonable, out-of-pocket fees and expenses (including the reasonable fees and expenses of counsel (but limited, in the case of fees and expenses of counsel, to one counsel for all the Commitment Parties and, if determined by the Commitment Parties to be reasonably necessary, of one local counsel in any relevant jurisdiction for all the Commitment Parties) of the Commitment Parties and their respective affiliates arising in connection with the Facility and the preparation, negotiation, execution, delivery and enforcement of this Commitment Letter, the Fee Letter and the Credit Documentation (including in connection with their due diligence and syndication efforts) shall be for your account (and that you shall from time to time upon request by any Commitment Party reimburse it and its affiliates for all such fees and expenses paid or incurred by them), whether or not the Transactions are consummated or the Facility is made available or the Credit Documentation is executed.  You further agree to indemnify and hold harmless each Commitment Party (whether in its capacity as an agent, arranger, Lender or otherwise) and each other agent or co-agent (if any) designated by the Arranger (as reasonably agreed by you) with respect to the Facility and their respective affiliates and each director, officer, employee, representative, member, partner, trustee and agent thereof (each, an “Indemnified Person”) from and against any and all actions, suits, proceedings (including any investigations or inquiries), claims, losses, damages, liabilities or expenses of any kind or nature whatsoever that may be incurred by or asserted against or involve any Indemnified Person as a result of or arising out of or in any way related to or resulting from the Transactions, this Commitment Letter or the Fee Letter, the Facility and the actual or proposed use of the proceeds thereof and any related transaction and, upon demand, to pay and reimburse each Indemnified Person for any reasonable legal or other out-of-pocket expenses (but limited, in the case of legal fees and expenses, to one counsel for such Indemnified Persons taken as a whole and, solely in the case of a conflict of

 

5

 

interest (as reasonably determined by the affected Indemnified Persons), one additional counsel for all affected Indemnified Persons (or similarly situated affected Indemnified Persons), in either case taken as a whole (and, if determined by us to be reasonably necessary, of one local counsel in any relevant jurisdiction for all such Indemnified Persons, taken as a whole, and, solely in the case of a conflict of interest (as reasonably determined by the affected Indemnified Persons), one additional local counsel for all affected Indemnified Persons (or similarly affected Indemnified Persons), in either case taken as a whole)) paid or incurred in connection with investigating, defending or preparing to defend any such action, suit, proceeding (including any inquiry or investigation) or claim (whether or not any Indemnified Person is a party to any action, suit or proceeding (including any inquiry or investigation) out of which any such expenses arise or such matter is initiated by a third party or by you or any of your affiliates); provided, however, that (i) you shall not have to indemnify any Indemnified Person against any loss, claim, damage, expense or liability to the extent same resulted from the gross negligence or willful misconduct of such Indemnified Person (as determined by a court of competent jurisdiction in a final and nonappealable judgment), (ii) each Indemnified Person shall consult with the Borrower from time to time at the reasonable request of the Borrower regarding the conduct of the defense in any such proceeding (other than in respect of proceedings in which the Borrower or any of its affiliates is a party adverse to such Indemnified Person), provided that the failure of any Indemnified Party to so consult with the Borrower shall not relieve you of your obligations under this Commitment Letter (including under this Section 7), and (iii) each Indemnified Person that proposes to settle or compromise any claim, litigation, investigation or proceeding for which you may be liable for payment of indemnity hereunder shall obtain the Borrower’s consent (not to be unreasonably withheld, delayed or conditioned) to such settlement or compromise.  Neither JPMCB, JPMorgan nor any other Indemnified Person shall be responsible or liable to you or any other person or entity for any damages arising from the use by others of information or other materials obtained through electronic, telecommunications or other information transmission systems.  Except to the extent you may be so responsible or liable pursuant to your obligations under this Section 7, no party hereto, nor any of their respective affiliates or their or their affiliates’ directors, officers, employees, representatives, members, partners, trustees or agents, shall be responsible or liable for any indirect, special, exemplary, incidental, punitive or consequential damages (including, without limitation, any loss of profits, business or anticipated savings) that may be alleged as a result of the Transactions, this Commitment Letter, the Fee Letter, the Facility and the actual or proposed use of the proceeds thereof and any related transaction.

 

8.             Sharing Information; Absence of Fiduciary Relationship; Affiliate Activities.

 

Each of us reserves the right to employ the services of our affiliates in providing services contemplated by this Commitment Letter and to allocate, in whole or in part, to our affiliates certain fees payable to us in such manner as we and our affiliates may agree in our sole discretion.  You acknowledge that (a) each of us may share with any of our affiliates, and such affiliates may share with us, any information related to the Transaction, the Guarantor and the Acquired Company, and their respective subsidiaries and other affiliates, or any of the matters contemplated hereby and (b) each of us and our affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which the Guarantor, the Acquired Company and their respective affiliates may have conflicting interests regarding the transactions described herein or otherwise.  Each of us agrees

 

6

 

to treat, and cause any such of our affiliates to treat, all non-public information provided to us by you and your subsidiaries (and clearly and conspicuously identified as such by you) as confidential information in accordance with the provisions hereof and customary banking industry practices. None of us will, however, furnish confidential information obtained from you by virtue of the transactions contemplated by this Commitment Letter or our other relationships with you to other persons (other than your affiliates).  You also acknowledge that none of us has any obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, confidential information obtained by us from other persons.

 

You further acknowledge and agree that (a) no fiduciary, advisory or agency relationship between you and us, or any other implied duty on our behalf, is intended to be or has been created in respect of any of the financing transactions contemplated by this Commitment Letter, including in connection with the process leading thereto or the communications pursuant hereto or otherwise, in each case irrespective of whether we or our affiliates have advised or are advising you on other matters, (b) we, on the one hand, and you, on the other hand, have an arms’-length business relationship that does not directly or indirectly give rise to, nor do you rely on, any fiduciary, advisory or agency duty on our part, (c) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter, (d) you have been advised that we and our affiliates are engaged in a broad range of transactions that may involve interests that differ from your interests and that we and our affiliates have no obligation to disclose such interests and transactions to you by virtue of any fiduciary, advisory or agency relationship, and (e) you waive, to the fullest extent permitted by law, any claims you may have against us or our affiliates for breach of fiduciary duty or alleged breach of fiduciary duty and agree that we and our affiliates shall have no liability (whether direct or indirect) to you in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of you, including your stockholders, employees or creditors.

 

You further acknowledge that JPMCB and JPMorgan, together with their affiliates, are a full service securities firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services.  In the ordinary course of business, JPMCB, JPMorgan and their affiliates may provide investment banking and other financial services to, and/or acquire, hold or sell, for their own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, the Guarantor, the Acquired Company and their respective subsidiaries and other companies with which you or your subsidiaries may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by any of us, any of our affiliates or any of our or their customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.

 

9.             Confidentiality.

 

This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter nor the Fee Letter nor any of their terms or substance shall be disclosed, directly or indirectly, by you to any other person or entity, except (a) to your and your affiliates’ respective officers, directors, employees, attorneys, accountants and advisors who have agreed to maintain the confidentiality of this Commitment Letter and the Fee Letter in accordance with the

 

7

 

terms hereof, and then only on a confidential and “need to know” basis in connection with the transactions contemplated hereby, (b) as required by applicable law, rule, regulation or stock exchange requirement (including filings with the Securities and Exchange Commission or any other regulatory authority or stock exchange) or compulsory legal process or in connection with any pending legal proceeding or regulatory review (provided that in each such case you agree, to the extent permitted by applicable law, to (i) inform us promptly thereof and (ii) furnish only that portion of this Commitment Letter, the Fee Letter or any of their terms or substance as you are required to disclose), (c) in the case of this Commitment Letter and the contents hereof (but not the Fee Letter or the contents thereof, except as part of generic disclosure of sources and uses with respect to the Transactions) (i) to any rating agencies on a confidential basis and (ii) in any prospectus, offering memorandum or confidential information memorandum relating to any Permanent Financing and (d) in the case of this Commitment Letter and the contents hereof (and a version of the Fee Letter redacted in the manner reasonably acceptable to JPMorgan), to the Acquired Company and its officers, directors, employees, attorneys, accountants and advisors who have agreed to maintain the confidentiality of this Commitment Letter and the Fee Letter in accordance with the terms hereof, and then only on a confidential and “need to know” basis in connection with the transactions contemplated hereby).

 

Each of us and our affiliates will use all confidential information provided to us or our affiliates by or on behalf of you hereunder solely for the purpose of providing the services that are the subject of this Commitment Letter and our other relationships with you and your affiliates and will treat confidentially all such information; provided that nothing herein shall prevent any of us or any of our affiliates from disclosing any such information (a) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process (in which case we (i) to the extent permitted by law, agree to inform you promptly thereof and (ii) shall furnish only that portion of such information which we or our affiliate is legally required to disclose), (b) upon the request or demand of any regulatory authority or self-regulatory body having jurisdiction or oversight over us or any of our affiliates (in which case, to the extent permissible, we (i) agree to inform you promptly thereof (except in connection with any ordinary course inquiry or audit) and (ii) shall furnish only that portion of such information which we or our affiliate is required (based on advice of counsel, which may be external counsel) to disclose), (c) to the extent that such information becomes publicly available other than by reason of improper disclosure by us or any of our affiliates, (d) to our respective affiliates and their respective employees, legal counsel, independent auditors and other experts or agents who need to know such information in connection with the Transaction (provided that such information is provided on a confidential basis and we shall be responsible for our affiliates’ compliance with this paragraph), (e) to potential Lenders, participants or assignees or any potential counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower or any of its affiliates or any of their respective obligations, in each case who agree to be bound by the terms of this paragraph (or, pursuant to any customary “click-through” confidentiality undertakings employed by Intralinks or a similar platform or any language substantially similar to this paragraph) or (f) for purposes of establishing a “due diligence” defense or in connection with any action or proceeding relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or the enforcement of any rights hereunder or thereunder (in which case we (i) to the extent permitted by law, agree to inform you promptly thereof and (ii) shall furnish only that portion of such information which is necessary or advisable (based on advice of counsel, which may be external

 

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counsel) to protect against the interest of us or our affiliate with respect to such proceeding).  Our obligations under this paragraph shall automatically, as applicable, (x) terminate upon the one year anniversary of the termination or expiration of the commitment hereunder or (y) terminate and be superseded by the confidentiality provisions in the Credit Documentation upon the closing of the Facility.

 

Notwithstanding anything herein to the contrary, any party to this Commitment Letter (and any employee, representative or other agent of such party) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Commitment Letter and the Fee Letter and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure, except that (a) tax treatment and tax structure shall not include the identity of any existing or future party (or any affiliate of such party) to this Commitment Letter or the Fee Letter, and (b) no party shall disclose any information relating to such tax treatment and tax structure to the extent nondisclosure is reasonably necessary in order to comply with applicable securities laws.  For this purpose, the tax treatment of the transactions contemplated by this Commitment Letter and the Fee Letter is the purported or claimed U.S. Federal income tax treatment of such transactions and the tax structure of such transactions is any fact that may be relevant to understanding the purported or claimed U.S. Federal income tax treatment of such transactions.

 

Additionally, you acknowledge and agree that none of us is advising you as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction.  You shall consult with your own advisors concerning such matters and shall be responsible for making your own independent investigation and appraisal of the transactions contemplated hereby, and we shall have no responsibility or liability to you with respect thereto.

 

10.           Assignments; Etc.

 

This Commitment Letter and the Fee Letter (and your rights and obligations hereunder and thereunder) shall not be assignable by you without the prior written consent of each of us (and any attempted assignment without such consent shall be null and void), are intended to be solely for the benefit of the parties hereto and thereto (and Indemnified Persons), are not intended to confer any benefits upon, or create any rights in favor of, or be enforceable by or at the request of any person other than the parties hereto and thereto (and Indemnified Persons) and may not be relied upon by any person or entity other than you.  JPMCB’s commitment hereunder shall be superseded by the commitments in respect of the Facility set forth in the definitive credit agreement for the Facility, and upon the execution and delivery of the definitive credit agreement for the Facility by the parties thereto, JPMCB shall be released from its commitment hereunder.  Any and all obligations of, and services to be provided by, JPMCB or JPMorgan hereunder (including, without limitation, the commitment of JPMCB) may be performed, and any and all rights of any of JPMCB and JPMorgan hereunder may be exercised, by or through any of its affiliates or branches; provided that neither JPMCB nor JPMorgan shall be relieved of any of its obligations hereunder in the event any such affiliate shall fail to perform such obligation in accordance with the terms hereof.

 

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11.           Amendments; Governing Law; Etc.

 

This Commitment Letter and the Fee Letter may not be amended or modified, or any provision hereof or thereof waived, except by an instrument in writing signed by each party hereto.  Each of this Commitment Letter and the Fee Letter may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement.  Delivery of an executed signature page of this Commitment Letter or the Fee Letter by facsimile (or other electronic) transmission shall be effective as delivery of a manually executed counterpart hereof or thereof, as the case may be.  Section headings used herein and in the Fee Letter are for convenience of reference only, are not part of this Commitment Letter or the Fee Letter, as the case may be, and are not to affect the construction of, or to be taken into consideration in interpreting, this Commitment Letter or the Fee Letter, as the case may be.  You acknowledge that information and documents relating to the Facility may be transmitted through Intralinks, the internet, email or similar electronic transmission systems, and that none of JPMCB, JPMorgan or the other Indemnified Persons shall be liable for any damages arising from the use by others of information or documents transmitted in such manner.  JPMCB and JPMorgan may (upon receipt of your written consent (which consent shall not be unreasonably withheld, delayed or conditioned) place customary advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of customary information on the Internet or worldwide web as it may choose, and circulate similar promotional materials, after the closing of the Transactions in the form of a “tombstone” or otherwise describing the names of the Borrower and its affiliates (or any of them), and the amount, type and closing date of the transactions contemplated hereby, all at the expense of JPMCB and JPMorgan.  This Commitment Letter and the Fee Letter set forth the entire agreement among the parties hereto as to the Facility and supersede all prior understandings, whether written or oral, among us and you with respect to the matters herein and therein.  Matters that are not covered or made clear in this Commitment Letter or in the Fee Letter are subject to mutual agreement of the parties hereto.  THIS COMMITMENT LETTER AND THE FEE LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF, TO THE EXTENT THAT THE SAME ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION).

 

12.           Jurisdiction, Etc.

 

Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the jurisdiction of any New York State court or Federal court of the United States of America in each case sitting in the County of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and each of the Guarantor and the Borrower hereby irrevocably and unconditionally agrees that all claims arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby brought by it or any of its affiliates shall be brought, and shall be heard and determined, exclusively in such New York State or, to the extent permitted by law, in such Federal court.  Each party hereto hereby irrevocably and unconditionally (a) waives, to the fullest extent it may legally and effectively do so, any

 

10

 

objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby in any New York State or Federal court, as the case may be, (b) 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 and (c) 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.  You agree to use commercially reasonable efforts to irrevocably designate and appoint CT Corporation, having an office on the date hereof at 111 Eighth Avenue, New York, New York 10011, as your authorized agent, to receive, accept and acknowledge on your behalf, or in respect of your property, service of any and all process that may be served in any suit, action or proceeding of the nature referred to in this Section 12 in any New York State or Federal court sitting in the County of New York.  Such service may be made by mailing or delivering a copy of such process to you in care of CT Corporation at its address set forth above.  Service of any process may also be served in any other manner permitted by law.

 

You represent and warrant that (a) you are subject, under the laws of the jurisdiction of your organization or existence, to civil and commercial laws with respect to your obligations under this Commitment Letter and the Fee Letter, and the execution, delivery and performance by you of this Commitment Letter and the Fee Letter constitute and will constitute private and commercial acts and not public or governmental acts and (b) none of your or any of your properties has any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) under the laws of the jurisdiction in which it is organized and existing in respect of its obligations under this Commitment Letter or the Fee Letter.  In the event you or any of your properties have or hereafter acquire, in any jurisdiction in which judicial proceedings may at any time be commenced with respect to this Commitment Letter, the Fee Letter or any transaction contemplated hereby any immunity from jurisdiction, legal proceedings, attachment (whether before or after judgment), execution, judgment or setoff, you hereby irrevocably agree not to claim, and hereby irrevocably and unconditionally waive, such immunity.

 

13.           Waiver of Jury Trial.

 

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, SUIT, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY HERETO RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER, THE FEE LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER OR THEREUNDER.

 

14.           Surviving Provisions.

 

The provisions of Sections 3, 4, 6, 7, 8, 9, 11, 12, 13 and 14 of this Commitment Letter and the provisions of the Fee Letter shall remain in full force and effect regardless of whether the Credit Documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the commitment of the Commitment Parties hereunder and our agreements to perform the services described herein; provided  that your obligations under Section 7 shall automatically terminate and be superseded by the Credit Documentation on the Closing Date, in each case, only to the extent a similar provision relating to expense

 

11

 

reimbursement and indemnification (covering the parties and matters covered by Section 7 hereof) is contained in the Credit Documentation.

 

15.           PATRIOT Act Notification.

 

Each of JPMCB and JPMorgan hereby notifies you that pursuant to the requirements of the USA PATRIOT ACT (Title III of Pub. L. 107-56 (signed into law October 26, 2001) (as amended from time to time, the “PATRIOT Act”)), it and the Lenders are required to obtain, verify and record information that identifies the Borrower and the Guarantor, which information includes the name, address, tax identification number and other information regarding the Borrower and the Guarantor that will allow JPMCB, JPMorgan and the Lenders to identify the Borrower and the Guarantor in accordance with the PATRIOT Act.  This notice is given in accordance with the requirements of the PATRIOT Act and is effective as to JPMCB, JPMorgan and each Lender.

 

16.           Termination and Acceptance.

 

JPMCB’s commitment hereunder, and JPMCB’s and JPMorgan’s agreements to perform the services described herein, will automatically terminate (without further action or notice and without further obligation to you) upon the first to occur (a) on 5:00 p.m., New York City time, on October 15, 2012, unless on or prior to such date a definitive credit agreement for the Facility, satisfactory in form and substance to us shall have been entered into and become effective pursuant to the terms thereof, (b) the consummation of the Acquisition, (c) the abandonment or termination of the Acquisition Agreement and (d) upon the effectiveness of the definitive documentation for the New Credit Facility.

 

If the foregoing correctly sets forth our agreement with you, please indicate your acceptance of the terms of this Commitment Letter and of the Fee Letter by returning to us executed counterparts hereof and of the Fee Letter not later than 11:59 p.m., New York City time, on November 29, 2011.  JPMCB’s commitment and the agreements of JPMCB and JPMorgan hereunder will expire at such time automatically (and without further action or notice and without further obligation to you) at such time in the event that we have not received such executed counterparts in accordance with the immediately preceding sentence.

 

[Remainder of this page intentionally left blank]

 

12

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
JPMORGAN   CHASE BANK, N.A.,
    
	
 
    	
 
    
	
 
    	
by
    	
/s/   ROBERT D. BRYANT
    
	
 
    	
 
    	
Name:   Robert D. Bryant
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
J.P.   MORGAN SECURITIES LLC,
    
	
 
    	
 
    	
 
    
	
 
    	
by
    	
/s/   THOMAS DELANEY
    
	
 
    	
 
    	
Name:   Thomas Delaney
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:   Executive Director
    
				

 

Accepted and agreed to as of

the date set forth above by:

 

 

	
TE   CONNECTIVITY LTD.,
    	
 
    
	
 
    	
 
    
	
by
    	
/s/   TERRENCE R. CURTIN
    	
 
    
	
 
    	
Name:   Terrence R. Curtin
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:   Executive Vice President and 
    	
 
    
	
 
    	
Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TYCO   ELECTRONICS GROUP S.A.,
    	
 
    
	
 
    	
 
    
	
by
    	
/s/   THOMAS G. ERNST
    	
 
    
	
 
    	
Name:   Thomas G. Ernst
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:   Director
    	
 
    

 

13

 

EXHIBIT A

CONFIDENTIAL

 

Project Burgundy
 US$700,000,000 Bridge Loan Facility
 Summary of Principal Terms and Conditions

 

Capitalized terms used but not defined in this Exhibit A shall have the meanings set forth in the commitment letter to which this Exhibit A is attached (the “Commitment Letter”).

 

	
Borrower:
    	
 
    	
Tyco   Electronics Group S.A., a company organized under the laws of the Grand Duchy   of Luxembourg  (the “Borrower”).
    
	
 
    	
 
    	
 
    
	
Administrative   Agent:
    	
 
    	
JPMorgan   Chase Bank, N.A. (“JPMCB”) will act as sole administrative agent (in   such capacity, the “Administrative Agent”) for a syndicate of banks,   financial institutions and other lenders (together with JPMCB, the “Lenders”)   and will perform the duties customarily associated with such role.
    
	
 
    	
 
    	
 
    
	
Sole   Lead Arranger and Sole Bookrunner:
    	
 
    	
J.P.   Morgan Securities LLC (in such capacity, the “Arranger”).
    
	
 
    	
 
    	
 
    
	
Transactions:
    	
 
    	
The   Borrower intends to acquire (the “Acquisition”) all the issued and   outstanding equity interests in the company previously identified to the   Arranger as “Burgundy” (the “Acquired Company”), pursuant to a Sale   and Purchase Agreement to be entered into by the Guarantor (as defined below)   and certain sellers party thereto (the “Acquisition Agreement”).  In connection with the foregoing, the   Borrower will (a) obtain the Facility, (b) repay any indebtedness   of the Acquired Company that would become due or otherwise default upon the   consummation of the Acquisition and (c) pay the fees and expenses   incurred in connection with the foregoing (the “Transaction Costs”).  It is anticipated that all or a portion of   the Facility will be replaced or refinanced by (i) the issuance of   senior unsecured notes of the Borrower in a public offering or in a   Rule 144A or other private placement (the “New Notes”) or   (ii) the proceeds of a new 364-day revolving credit facility of the   Borrower (the “New Credit Facility” and, together with the New Notes,   the “Permanent Financing”).  The   transactions described in this paragraph are collectively referred to as the   “Transactions”.
    
	
 
    	
 
    	
 
    
	
Facility:
    	
 
    	
(a)      Amount:  Senior unsecured 364-day bridge loan   facility in an aggregate principal amount of US$700,000,000 (the “Facility”).  Loans under the Facility will be available   in U.S. dollars.

 

(b)      Use of   Proceeds:  The   proceeds of loans under the Facility will be used by the Borrower on the   Funding Date (as defined below), together with cash on hand, to finance the   Acquisition and the other Transactions.
    

 

 

	
 
    	
 
    	
(c)      Maturity:  The Facility will mature on the day that is   364-days after the Funding Date and, prior to the final maturity thereof,   will not be subject to any scheduled amortization.

 

(d)      Availability:  From and after the date of the execution   and delivery of the definitive documentation for the Facility by the parties   thereto and the closing thereunder (the “Closing Date”), the Facility   will be available in a single drawing on the date on which the Acquisition is   consummated (the “Funding Date”), but in no event later than   October 15, 2012  Amounts borrowed   under the Facility that are repaid or prepaid may not be reborrowed.
    
	
 
    	
 
    	
 
    
	
Guaranties:
    	
 
    	
TE   Connectivity Ltd., a company organized under the law of Switzerland (the “Guarantor”),   shall be required to provide an unconditional guaranty (the “Guaranty”)   of all amounts owing under the Facility.    The Guaranty shall be in form and substance substantially similar to   the guaranty required and provided under the Existing Credit Agreement (as   defined below) and shall be a guaranty of payment and not of collection. In   addition, each subsidiary of the Guarantor that provides a guaranty in   respect of the Existing Credit Agreement or any other any material debt of   the Borrower for or in respect of borrowed money shall be obligated to   provide a guaranty of all amounts owing under the Facility in form and   substance substantially identical to the corresponding guaranty required   under the Existing Credit Agreement (and, to the extent not covered by the   form of such guaranties, the Borrower, the Guarantor and each such subsidiary   shall enter into customary indemnity, contribution and subrogation agreement   with respect thereto).
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Optional   Commitment Reductions:
    	
 
    	
The commitments under the Facility may, upon three   business days’ notice, be reduced or terminated by the Borrower without   penalty in minimum amounts and multiples to be mutually agreed.
    
	
 
    	
 
    	
 
    
	
Voluntary   Prepayments:
    	
 
    	
Voluntary prepayments of loans under the Facility   may be made at any time on three business days’ notice in the case of LIBOR   Loans, or one business day’s notice in the case of Base Rate Loans, without   premium or penalty, in minimum principal amounts and multiples to be mutually   agreed; provided that voluntary prepayments of LIBOR Loans made on a   date other than the last day of an interest period applicable thereto shall   be subject to customary breakage costs.
    
	
 
    	
 
    	
 
    
	
Mandatory Commitment   Reduction and Prepayment:
    	
 
    	
Commitments   will be reduced, and loans will be required to be prepaid, under the Facility   in an aggregate amount equal to:

 

(a)         100% of the net cash   proceeds received by the Guarantor or any of its subsidiaries from any Debt   Incurrence (as defined below) 
    

 

2

 

	
 
    	
 
    	
after the date of the Commitment Letter, whether before or after the   Closing Date;

 

(b)         100% of the net cash   proceeds received by the Guarantor from any Equity Issuance (as defined   below) after the date of the Commitment Letter, whether before or after the   Closing Date; and

 

(c)         100% of the net cash   proceeds received by the Guarantor or any of its subsidiaries from any sale   or other disposition of assets (including proceeds from the sale of equity   interest in any subsidiary of the Guarantor and insurance and condemnation   proceeds) consummated after the date of the Commitment Letter, whether before   or after the Closing Date, other than (i) dispositions in the ordinary   course of business and not as part of a financing, (ii) any disposition   that does not result in net cash proceeds exceeding US$50,000,000 for such   disposition and (iii) any disposition from or to an affiliate of the   Guarantor, and subject to the right to reinvest any such proceeds within   180-days of the receipt of such net cash proceeds.

 

“Debt   Incurrence” means any incurrence of debt for borrowed money by the   Guarantor, the Borrower or any of their subsidiaries, whether pursuant to a   public offering or in a Rule 144A or other private placement of debt   securities (including debt securities convertible into equity securities) or   incurrence of loans under any loan or credit facility, other than   (a) intercompany debt, (b) debt under the Existing Credit Agreement   (but not under any incremental commitments thereunder effected after the date   of the Commitment Letter) and any refinancing, amendment, amendment and   restatement or extension thereof that does not increase the aggregate   principal or committed amount thereof, (c) commercial paper financings   in the ordinary course of business and (d) working capital and overdraft   facilities provided to the Borrower and its subsidiaries in the ordinary   course of business.

 

“Equity   Issuance” means any issuance of equity or equity-linked securities by the   Guarantor, whether pursuant to a public offering or in a Rule 144A or   other private placement, other than (a) securities issued pursuant to   employee stock plans or employee compensation plans or contributed to pension   funds and (b) securities or interests issued or transferred as   consideration in connection with any acquisition, divestiture or joint   venture arrangements.

 

Mandatory   prepayments of loans under the Facility will be without premium or penalty; provided   that prepayments of LIBOR Loans made on a date other than the last day of an   interest period applicable thereto shall be subject to customary breakage   costs.
    

 

3

 

	
Documentation:
    	
 
    	
The   Facility will be documented under a credit agreement that will be based upon   the Borrower’s Five-Year Senior Credit Agreement dated as of June 24,   2011, as in effect on the date hereof (the “Existing Credit Agreement”),   with such changes thereto as are necessary or reasonably appropriate to   reflect the terms set forth in this Exhibit A, in the Commitment Letter   and in the Fee Letter or the nature of the transactions contemplated hereby   or as are otherwise agreed by the Borrower and the Arranger.  Without limiting the foregoing, the   definitive credit agreement for the Facility will contain representations and   warranties, affirmative covenants, negative covenants, financial covenants   and events of default that are identical (including as to exceptions,   qualifications and grace periods contained therein) to those set forth in the   Existing Credit Agreement, save for such changes thereto as are necessary or   reasonably appropriate to reflect the terms set forth in this Exhibit A,   in the Commitment Letter and in the Fee Letter or the nature of the   transactions contemplated hereby or as otherwise agreed by the Borrower and   the Arranger.
    
	
 
    	
 
    	
 
    
	
Commitment Fees:
    	
 
    	
Commitment   Fees will accrue and be payable to the Lenders at the rate per annum set   forth in the Fee Letter on the aggregate unused commitments under the   Facility, commencing on the date on which definitive credit agreement for the   Facility is executed and delivered and payable in arrears at the end of each   calendar quarter and upon any termination of the commitments.  Commitment fees will be calculated on the   basis of a 360-day year and actual days elapsed.
    
	
 
    	
 
    	
 
    
	
Duration   Fees:
    	
 
    	
The Borrower will pay to each Lender Duration Fees   on such dates, and in such amounts, as are set forth in the Fee Letter.
    
	
 
    	
 
    	
 
    
	
Interest   Rates:
    	
 
    	
At   the Borrower’s option, loans may be maintained from time to time as   (a) Base Rate Loans, which shall bear interest at the Base Rate in   effect from time to time plus the Applicable Margin (as defined   below), or (b) LIBOR Loans, which shall bear interest at LIBOR (adjusted   for maximum reserves) as determined by the Administrative Agent for the   respective interest period plus the Applicable Margin.

 

“Applicable   Margin” shall be determined based on the Pricing Grid set forth in the   Fee Letter.

 

“Base Rate” shall mean the highest of   (a) the rate that the Administrative Agent announces from time to time   as its prime lending rate, as in effect from time to time, (b) 1/2 of   1.00% in excess of the overnight Federal Funds Rate and (c) LIBOR for an   interest period of one month plus 1.00%.

 

“LIBOR” will be defined in a manner to be   agreed between JPMCB and the Borrower.
    

 

4

 

	
 
    	
 
    	
Interest periods of 1, 2 or 3 months shall be   available in the case of LIBOR Loans.

 

The   Credit Documentation shall include customary protective provisions for such   matters as capital adequacy and liquidity, increased costs (including   provisions for increased costs in the form of taxes (other than customary   excluded taxes) and customary Dodd-Frank Wall Street Reform and Consumer   Protection Act and Basel III yield protections), reserves, funding losses,   illegality and withholding, stamp and other similar excise or property taxes   and VAT.  The Borrower shall have the   right to replace any Lender that (a) charges a material amount in excess   of that being charged by the other Lenders with respect to contingencies   described in the immediately preceding sentence or (b) refuses to   consent to certain amendments to or waivers of the Credit Documentation that   expressly require the consent of such Lender and which have been approved by   the Required Lenders.

 

Interest   in respect of Base Rate Loans shall be payable quarterly in arrears on the   last business day of each calendar quarter.    Interest in respect of LIBOR Loans shall be payable in arrears at the   end of the applicable interest period.    Interest will also be payable at the time of repayment of any loans   and at maturity.  All interest on Base   Rate Loans and LIBOR Loans shall be based on a 360-day year and actual days   elapsed (or, in the case of Base Rate Loans determined by reference to the   prime lending rate, a 365 or 366-day year, as applicable, and actual days   elapsed).
    
	
 
    	
 
    	
 
    
	
Default   Interest:
    	
 
    	
Overdue   principal shall bear interest at a rate per annum equal to the rate which is   2% in excess of the rate then borne by the applicable borrowing.  Overdue interest and other amounts shall   bear interest at the rate which is 2% in excess of the rate otherwise   applicable to Base Rate Loans under the Facility from time to time.  Such interest shall be payable on demand.
    
	
 
    	
 
    	
 
    
	
Conditions   Precedent to Funding:
    	
 
    	
The borrowing under the Facility will be subject   to:

 

(a)   the receipt of a borrowing notice therefor,

 

(b)   all representations and warranties shall be true   and correct in all material respects on and as of the date of such borrowing   (although any representations and warranties which expressly relate to a   given date or period shall be required to be true and correct in all material   respects as of the respective date or for the respective period, as the case   may be), before and after giving effect to such borrowing and to the   application of the proceeds therefrom, as though made on and as of such date   (subject to the Certain Funds Provision),

 
    

 

5

 

	
 
    	
 
    	
(c)   no event of default under   the Facility, or event which with the giving of notice or lapse of time or   both would be an event of default under the Facility, shall have occurred and   be continuing, or would result from such borrowing (subject to, in the case   of any defaults or events of default relating to the accuracy of   representations and warranties, the Certain Funds Provision), and

 

(d)   the other conditions set   forth or referred to in Section 5 of the Commitment Letter or in Annex I   to this Exhibit A.
    
	
 
    	
 
    	
 
    
	
Representations   and Warranties:
    	
 
    	
Representations and warranties (applicable to the   Guarantor, the Borrower and, as applicable, certain of their respective   subsidiaries and made on the Closing Date and the Funding Date) will be   limited to the following: corporate status; power and authority; due   authorization, execution and delivery and enforceability; no violation or   conflicts with laws, contracts or charter documents; governmental and   third-party approvals; financial statements; absence of a Material Adverse   Effect (to be defined in a manner consistent with the Existing Credit   Agreement); absence of material litigation; true and complete disclosure;   compliance with Margin Regulations and inapplicability of Investment Company   Act; tax returns and payments; compliance with ERISA and environmental law;   and subsidiaries.  Any qualification   based on disclosure in the periodic reports filed by the Guarantor shall be   limited to disclosures in such reports filed prior to the date of the   Commitment Letter and shall exclude disclosures in the risk factors,   cautionary statements, forward-looking statements and the like.
    
	
 
    	
 
    	
 
    
	
Covenants:
    	
 
    	
Affirmative,   negative and financial covenants (applicable to the Guarantor, the Borrower   and, as applicable, certain of their respective subsidiaries from and after   the Closing Date) will be limited to the following:

 

(a)   Affirmative Covenants: compliance   with laws and regulations; maintenance of adequate insurance and properties;   preservation of corporate existence, rights, privileges and franchises and   nature and conduct of business; visitation and inspection rights; keeping of   proper books in accordance with US GAAP (or IFRS, if adopted by the   Guarantor); notice of defaults, material litigation and certain other   material events; financial and other reporting requirements (including,   without limitation, unaudited quarterly and audited annual financials for the   Guarantor and its subsidiaries (including the Borrower) on a consolidated   basis (in accordance with US GAAP (or IFRS, if adopted by the Guarantor));   use of proceeds; and subsidiary guaranties.

 

(b)   Negative Covenants:  restrictions on liens; incurrence of   subsidiary debt; fundamental changes (to include additional flexibility for   the Borrower and Guarantor to be organized in the United States or,
    

 

6

 

	
 
    	
 
    	
subject to the approval of the Administrative   Agent (such approval not to be unreasonably withheld, delayed or   conditioned), any of Denmark, Finland, Germany, Ireland, Luxembourg,   Netherlands, Sweden or the United Kingdom); transactions with affiliates; and   restrictions on distributions, advances and asset transfers by subsidiaries.

 

(c)   Financial Covenant.  The following financial covenant (the “Financial   Covenant”) (with financial definitions and covenant levels identical to   those contained in the Existing Credit Agreement unless otherwise agreed by   the Borrower and the Arranger):

 

·      Maintenance of a maximum ratio (the “Total   Leverage Ratio”) of Consolidated Total Debt to Consolidated EBITDA not to   exceed 3.50:1.00

 

The   Financial Covenant will be tested and calculated on a quarterly basis in the   same manner as under the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Events   of Default:
    	
 
    	
Events of Default (applicable to the Guarantor,   the Borrower and, as applicable, certain of their respective subsidiaries)   will be limited to the following:    nonpayment of principal when due or of interest, fees or other amounts   after a grace period of five business days; failure to perform or observe   covenants set forth in the Credit Documentation; any representation or   warranty proving to have been incorrect in any material respect when made or   deemed made; matured cross default and cross-acceleration to other material   indebtedness (in an aggregate principal amount outstanding exceeding   US$75,000,000); bankruptcy, insolvency proceedings, etc.; inability to   pay debts, attachment, etc.; monetary judgment defaults in an aggregate   amount in excess of US$55,000,000; customary ERISA defaults; actual or   asserted invalidity of Credit Documentation; and Change of Control (to be   defined and including the Borrower ceasing to be a wholly-owned consolidated   subsidiary of the Guarantor).
    
	
 
    	
 
    	
 
    
	
Defaulting Lenders:
    	
 
    	
The Credit Documentation will contain customary   “defaulting lender” provisions.
    
	
 
    	
 
    	
 
    
	
Assignments   and Participations:
    	
 
    	
Neither the Guarantor nor the Borrower may assign   its rights or obligations under the Facility without the prior written   consent of the Lenders.  Any Lender may   assign, and may sell participations in, its rights and obligations under the   Facility, subject (a) in the case of participations, to customary   restrictions on the voting rights of the participants and restrictions on   participations to the Guarantor, the Borrower and their respective affiliates   and (b) in the case of assignments, to such limitations as may be   established by the Administrative Agent (including (i) a minimum   assignment amount of
    

 

7

 

	
 
    	
 
    	
US$1,000,000 (or, if less, the entire amount of   such assignor’s commitments or outstanding loans at such time), (ii) an   assignment fee in the amount of $3,500 to be paid by the respective assignor   or assignee to the Administrative Agent, (iii) restrictions on   assignments to any entity that is not an Eligible Assignee (to be defined to   exclude the Guarantor, the Borrower and their respective affiliates), and   (iv) except in the case of an assignment to any Lender (or any Permitted   Assignee) or an affiliate or an “approved fund” of a Lender, the receipt of   the consent of the Administrative Agent and, so long as no event of default   exists under the Facility, the Borrower (such consent, in any such case, not   to be unreasonably withheld, delayed or conditioned and with the consent of   the Borrower to have been deemed granted if it has not objected to a proposed   assignment within 5 business days’ notice thereof)).  The Facility shall provide for a mechanism   which will allow for each assignee to become a direct signatory to the   Facility and will relieve the assigning Lender of its obligations with   respect to the assigned portion of its commitment and/or loans, as   applicable.  Participations will have   customary benefits with regard to yield protection and increased costs.
    
	
 
    	
 
    	
 
    
	
Waivers   and Amendments:
    	
 
    	
Amendments   and waivers of the provisions of the Credit Documentation will require the   approval of Lenders holding commitments or loans representing more than 50%   of the aggregate commitments or loans under the Facility (the “Required   Lenders”), except that (a) the consent of each Lender directly   affected thereby will be required with respect to customary matters to be   agreed by the Borrower and the Arranger, including (i) increases in   commitment amounts, (ii) reductions of principal, rate of interest or   fees, (iii) extensions of scheduled payments of any loans (including at   final maturity) or times for payment of interest or fees, and (iv) modifications   to the pro  rata sharing or payment provisions, assignment   provisions or the voting percentages, and (b) the consent of all of the   Lenders shall be required with respect to customary matters to be agreed by   the Borrower and the Arranger, including releases of all or substantially all   of the value of the Guaranty provided by the Guarantor and, if any, the other   guaranties in respect of the Facility, taken as a whole; provided that   if any of the matters described in clause (a) or (b) above is   agreed to by the Required Lenders, so long as no default or event of default   is continuing at such time, the Borrower shall have the right to either (i) substitute   any non-consenting Lender by having its commitment or loans, as applicable,   assigned, at par, to one or more other institutions, subject to the   assignment provisions described above, or (ii) with the express written   consent of the Required Lenders, terminate the commitment of any   non-consenting Lender, subject to repayment in full of all obligations of the   Borrower owed to such Lender relating to the Facility held by such Lender.
    

 

8

 

	
Expenses   and Indemnification:
    	
 
    	
The Credit Documentation will contain customary   indemnities for the Administrative Agent, the Arranger, the Lenders and their   respective affiliates’ employees, officers and agents, in each case other   than as a result of such person’s gross negligence or willful misconduct as   determined by a court of competent jurisdiction in a final and nonappealable   decision, and customary expense reimbursement agreements (including, without   limitation, for all reasonable out-of-pocket costs and expenses of the   Lenders incurred after the occurrence, and during the continuance of, a   default under the Facility).
    
	
 
    	
 
    	
 
    
	
Governing   Law and Forum:
    	
 
    	
New York.  The parties to the Credit Documentation will   submit to the New York jurisdiction, and the Guarantor and the Borrower shall   agree that any claim arising out of the Credit Documentation or the   transactions contemplated thereby brought by them or their affiliates shall   be brought exclusively in New York.    The Credit Documentation will contain provisions customary for U.S.   credit facilities provided to entities organized outside the United States,   including a requirement that the Guarantor and the Borrower appoint a U.S.   agent for the service of process and waive any immunity from jurisdiction or   legal proceeding.
    
	
 
    	
 
    	
 
    
	
Counsel   to Administrative Agent and Arranger:
    	
 
    	
Cravath, Swaine & Moore LLP.
    

 

9

 

ANNEX I

TO EXHIBIT A

 

Project Burgundy
 US$700,000,000 Bridge Loan Facility
 Summary of Additional Conditions Precedent

 

The borrowing under the Facility shall be subject to the following additional conditions precedent:

 

1.             The Arranger shall have received a copy of the definitive Acquisition Agreement (together with all the exhibits, schedules and other documents relating thereto) certified by the Guarantor as complete and correct and, unless approved by the Arranger, the terms and conditions thereof, and of all such exhibits, schedules and other documents relating thereto, shall not be different in any respect that is materially adverse to the Lenders than the terms and conditions of the draft of the Acquisition Agreement dated November 28, 2011, delivered to the Arranger’s counsel on November 28, 2011 at 6:29 p.m.  The Acquisition shall have been consummated, or substantially concurrently with the funding under the Facility shall be consummated, pursuant to and on the terms set forth in the Acquisition Agreement and all conditions precedent to the consummation of the Acquisition shall have been satisfied; provided that no conditions precedent or other terms of the Acquisition Agreement shall have been amended, waived or otherwise modified (and no consent thereunder shall have been granted) in a manner that is materially adverse to the Lenders unless approved by the Arranger.

 

2.             All indebtedness outstanding under the Acquired Company’s US$725,000,000 senior and second lien facilities agreement dated as of June 22, 2006 (as amended and restated on September 15, 2009 and April 30, 2010), and all other indebtedness of the Acquired Company and its subsidiaries contemplated by the Acquisition Agreement to be repaid upon the consummation of the Acquisition, shall have been repaid, or substantially concurrently with the funding under the Facility shall be repaid, all commitments thereunder shall have been, or substantially concurrently with the funding under the Facility shall be, terminated and all liens and guarantees created thereunder shall have been, or substantially concurrently with the funding under the Facility shall be, released and discharged (it being understood and agreed that certain documentation and filings with respect to the termination of such liens will not occur on the Funding Date, and that the Guarantor will use commercially reasonable efforts to cause such documentation and filings to occur as promptly as practicable following the Funding Date).

 

3.             The Lenders shall have received (a) U.S. GAAP audited consolidated balance sheets and related consolidated statements of income, stockholders’ equity and cash flows of the Guarantor for the three most recently completed fiscal years ended at least 90 days prior to the Funding Date, (b) U.S. GAAP unaudited consolidated balance sheets and related consolidated statements of income, stockholders’ equity and cash flows of the Guarantor for each subsequent fiscal quarter ended at least 45 days before the Funding Date (and comparable periods for the prior fiscal year) and (c) IFRS audited consolidated balance sheets of the Acquired Company for the fiscal year ended December 31, 2010 and any related consolidated statements of the Acquired Company in the possession of the Guarantor as of the Funding Date; provided that filing of the financial statements referred to in clause (a) or (b) above on Form 10-K and Form 10-Q by the Guarantor will satisfy the foregoing requirements.

 

A-1

 

4.             The Lenders shall have received (a) legal opinions reasonably satisfactory to the Administrative Agent from counsel (including, without limitation, New York counsel) covering matters reasonably acceptable to the Administrative Agent (including, without limitation, governmental approvals with respect to the Facility), (b) a solvency certificate in the form attached hereto as Schedule I, from the chief financial officer of the Borrower, and (c) other customary and reasonably satisfactory closing and corporate documents, resolutions, certificates (including a certificate as to the occurrence of any event referred to under “Mandatory Commitment Reduction and Prepayment” in the Term Sheet and any amendments, waivers or consents under the Acquisition Agreement), instruments, and deliverables.

 

5.             The Arranger shall have had a period of not less than 20 consecutive days after completion of a customary confidential information memorandum with respect to the Facility to market and syndicate the Facility; provided that such period shall not include any day from and including December 19, 2011 through and including January 3, 2012, and any day from and including August 13, 2012 through and including September 3, 2012.

 

6.             All costs, fees, and all reasonable and documented expenses (including, without limitation, legal fees and expenses) and other compensation contemplated hereby for which invoices have been presented no later than the second day preceding the Funding Date, payable to the Arranger, the Administrative Agent and the Lenders shall have been paid to the extent due.

 

7.             One or more investment banks reasonably satisfactory to the Arranger shall have been engaged to publicly sell or privately place the New Notes.

 

8.             The Lenders shall have received all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations (including without limitation the PATRIOT Act) and requested at least five business days prior to the Funding Date.

 

A-2

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