Document:

Exhibit 10.16

 

 

DATED
29 FEBRUARY 2008

 

 

TORNIER
B.V.

 

as
the Issuer

 

 

 

WARRANT
AGREEMENT

 

 

 

 

 

TABLE
OF CONTENTS

 

	
  Clause

  	
   

  	
  Headings

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  ISSUE OF WARRANTS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  TRANSFERS AND EXCHANGES

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  EXERCISE OF WARRANTS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  ADJUSTMENTS

  	
   

  	
  4

  
	
   

  	
   

  	
  5.1.  

  	
  Adjustment for stock splits, dividends and combinations

  	
   

  	
  4

  
	
   

  	
   

  	
  5.2.  

  	
  Adjustment for rights issues

  	
   

  	
  5

  
	
   

  	
   

  	
  5.3.  

  	
  Adjustment for Equity Shares issue

  	
   

  	
  6

  
	
   

  	
   

  	
  5.4.  

  	
  Notice of adjustment and certain transactions

  	
   

  	
  6

  
	
   

  	
   

  	
  5.5.  

  	
  Determination

  	
   

  	
  7

  
	
   

  	
   

  	
  5.6.  

  	
  Adjustment in number of shares

  	
   

  	
  7

  
	
   

  	
   

  	
  5.7.  

  	
  Undertaking to issue additional Warrant Shares

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  NO DILUTION OR IMPAIRMENT

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  COVENANTS OF THE ISSUER

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  MISCELLANEOUS PROVISIONS

  	
   

  	
  8

  
	
   

  	
   

  	
  8.1.  

  	
  Winding up of the Issuer

  	
   

  	
  8

  
	
   

  	
   

  	
  8.2.  

  	
  Fractional interests

  	
   

  	
  8

  
	
   

  	
   

  	
  8.3.  

  	
  Notices

  	
   

  	
  8

  
	
   

  	
   

  	
  8.4.  

  	
  Expenses

  	
   

  	
  10

  
	
   

  	
   

  	
  8.5.  

  	
  Entire agreement

  	
   

  	
  10

  
	
   

  	
   

  	
  8.6.  

  	
  Amendment

  	
   

  	
  11

  
	
   

  	
   

  	
  8.7.  

  	
  Partial invalidity

  	
   

  	
  11

  
	
   

  	
   

  	
  8.8.  

  	
  Copies

  	
   

  	
  11

  
	
   

  	
   

  	
  8.9.  

  	
  Governing law

  	
   

  	
  11

  
	
   

  	
   

  	
  8.10.  

  	
  Jurisdiction

  	
   

  	
  11

  

 

	
  SCHEDULE 1 — FORM OF
  DEED OF ISSUE

  
	
   

  
	
  SCHEDULE 2 — FORM OF
  EXERCISE NOTICE

  
	
   

  
	
  SCHEDULE 3 - WARRANT REGISTER

  
	
   

  
	
  SCHEDULE 4 - FORM OF
  TRANSFER INSTRUMENT

  

 

i

 

THIS WARRANT AGREEMENT is made on 29 February 2008

 

BETWEEN:

 

(1)                                 Tornier B.V., a company incorporated under the laws of
the Netherlands (the “Issuer”);

 

(2)                                 Warburg Pincus (Bermuda) Private Equity IX, L.P., a
company organised under the laws of Bermuda (“WP”);
and

 

(3)                                 Vertical Fund I, L.P., Vertical Fund II, L.P., Mr. Douglas
Kohrs, Split Rock Partners, LP, KCH Stockholm AB, Mr. Rod Mayer, Ms. Diane
Doty, Mr. Robert Anderson, Mr. Ralph Barisano, Mr. Jamal Rushdy,
Mr. James Christopher Harber, Mr. Jean-Marc Idier and Mr. Jim
Kwan.

 

The parties to this Warrant Agreement are
hereinafter collectively referred to as the “Parties”
and individually as a “Party”. The
parties listed under (2) to (3) above are hereinafter collectively
referred to as the “Original Warrantholders”
and individually as an “Original Warrantholder”.

 

RECITALS:

 

(1)                                 TMG Holdings Coöperatief U.A. (The Netherlands), TMG
Partners U.S., LLC, Vertical Fund I, L.P., Vertical Fund II, L.P., TMG Partners
II LLC, DVO TH, LLC and Mr. Douglas Kohrs (the “Shareholders”)
hold all of the issued shares in the Issuer.

 

(2)                                 The Issuer has issued EUR 34,500,000 aggregate nominal
amount of promissory notes due 28 February 2013 under an instrument dated
29 February 2008 (the “Instrument”).

 

(3)                                 The Issuer’s current issued and outstanding share
capital consists of 61,337,120 ordinary shares with a par value of EUR 0.01
each and the Issuer’s authorised share capital consists of 300,000,000 ordinary
shares with a par value of EUR 0.01 each.

 

(4)                                 In consideration of the Lenders (as defined in the
Instrument) granting a loan to the Issuer under the Instrument, the Issuer has
agreed to issue a number of warrants giving the right to acquire 9,265,018
ordinary shares in the capital of the Issuer with a par value of EUR 0.01 each.

 

(5)                                 In accordance with clause 4.1 of the articles of
association of the Issuer, the Board has on 28 February 2008 resolved to
grant a right to acquire 9,265,018 ordinary shares in the capital of the Issuer
with a par value of EUR 0.01 each subject to the terms and conditions of this Warrant
Agreement (the “Resolution”) and the board of
supervisory directors of the Issuer has approved the Resolution.

 

IT IS AGREED as follows:

 

1

 

1.                                      DEFINITIONS

 

1.1.                             In this Warrant Agreement the following definitions
have the following meaning:

 

“Board” means
the board of managing directors of the Issuer;

 

“Business Day”
means a day (other than a Saturday or Sunday) on which banks are open for
general business in the Netherlands;

 

“Deed of Issue”
a notarial deed of issue of Shares pursuant to which such number of Shares are
issued as corresponds the number of Warrants that is exercised by a
Warrantholder substantially in the form as attached hereto as Schedule 1;

 

“Equity Shares”
means all issued shares and shares which are outstanding at any time in the
capital of the Issuer, for the avoidance of doubt, specifically including the
Shares;

 

“Exercise Notice”
means an exercise notice in relation to one or more Warrants in the form
attached hereto as Schedule 2;

 

“Exercise Price”
means the exercise price of the Warrants being an amount of USD 5.66 per
ordinary share in the capital of the Issuer (subject to any adjustments made
pursuant to clause 5 of this Warrant Agreement;

 

“Instrument” has
the meaning ascribed thereto in the recitals of this Warrant Agreement;

 

“Issuer” has the
meaning ascribed thereto in the opening of this Warrant Agreement;

 

“Original Warrantholder”
has the meaning ascribed thereto in the opening of this Warrant Agreement;

 

“Resolution” has
the meaning ascribed thereto in the recitals of this Warrant Agreement;

 

“Share” means an
ordinary share with a par value of EUR 0.01, in the capital of the Issuer;

 

“Shareholders”
has the meaning ascribed thereto in the recitals of this Warrant Agreement;

 

“Transfer Instrument”
has the meaning ascribed thereto in clause 3.1;

 

“Warrantholder”
means a person that holds one or more Warrants and is entered into the Register
as the holder of such Warrants (including any transferee who acquires any
Warrants in accordance with clause 3 of this Warrant Agreement);

 

“Warrantholder Majority”
means the Original Warrantholders who hold a majority of the Warrants
calculated solely as of the date of this Warrant Agreement;

 

“Warrant Period”
means the period starting on the date hereof and ending on 28 February 2018;

 

“Warrant” the
right to acquire a Warrant Share against delivery of an Exercise Notice and
payment of the Exercise Price;

 

“Warrant Shares”
means the Shares issuable on exercise of the Warrants;

 

“WP” has the
meaning ascribed thereto in the opening of this Warrant Agreement.

 

1.2.                             In this Warrant Agreement, unless otherwise specified:

 

2

 

1.2.1.                              the masculine gender shall
include the feminine and the neuter and vice versa;

 

1.2.2.                              references to a person shall
include a reference to any individual, Issuer, association, partnership or
joint venture;

 

1.2.3.                              unless the context requires
otherwise, words in the singular shall include the plural and vice versa;

 

1.2.4.                              the headings are for
identification only and shall not affect the interpretation of this Warrant
Agreement.

 

2.                                     ISSUE OF WARRANTS

 

2.1.                             In consideration of the Lenders (as defined in the
Instrument) providing a loan to the Issuer in accordance with the terms and
conditions of the Instrument and further in accordance with the Resolution, the
Issuer hereby grants the Warrants to the Original Warrantholders giving the
right to acquire an initial aggregate of 9,265,018 Shares.

 

2.2.                             Each Warrantholder shall have the number of Warrants
set forth opposite its name on Schedule 3 hereto (the “Warrant Register”) and the Issuer shall update Schedule 3
from time to time to reflect any Exercises and any transfers of the Warrants.
The Issuer may deem and treat the registered holder of a Warrant as the
absolute owner thereof (notwithstanding any notation of ownership or other
writing thereon made by anyone), for all purposes, and shall not be affected by
any notice to the contrary (except to the extent Warrants may have been
transferred in accordance with clause 3).

 

3.                                     TRANSFERS AND EXCHANGES

 

3.1.                             A Warrantholder may transfer the Warrants held by it
or any part thereof to a Shareholder by a transfer in writing substantially in
the form set forth in Schedule 4 attached hereto (a “Transfer Instrument”), provided, however, that no
Warrantholder may transfer any Warrants without the prior written consent of
the Board and the Warrantholder Majority and unless, upon receipt of the
necessary consents, the transferee agrees in writing (in a form satisfactory to
the Issuer and the Warrantholder Majority) to be bound by all of the terms and
conditions of this Agreement as if such transferee was an initial signatory
hereto.

 

3.2.                             The Issuer shall from time to time register the transfer
of any outstanding Warrants in the Warrant Register upon delivery of a validly
executed Transfer Instrument to the Issuer.

 

4.                                     EXERCISE OF WARRANTS

 

4.1.                             Subject to the terms of this Warrant Agreement, each
Warrantholder shall have the right, which may be exercised until the end of the
Warrant Period, to receive, upon payment of the Exercise Price to or for the
account of the Issuer, from the Issuer the number of fully paid Warrant Shares,
which the Warrantholder may at the time be entitled to receive on exercise of
such Warrants. Each Warrant not exercised prior to the end of the Warrant
Period shall become null and void and all rights thereunder and all rights in
respect thereof under this Warrant Agreement shall cease as of such time.

 

4.2.                             A Warrant is validly exercised upon:

 

4.2.1.                              payment of the Exercise
Price to or for the account of the Issuer; and

 

3

 

4.2.2.                              delivery of a properly
executed Exercise Notice to the Issuer.

 

4.3.                             The Issuer hereby in advance consents to the payment
of the Exercise Price in a currency other than Euro, in accordance with section
2:191a of the Dutch Civil Code.

 

4.4.                             The Issuer is obliged to procure the execution of the
relevant Deed of Issue within seven Business Days after receipt of an Exercise
Notice and payment of the Exercise Price.

 

4.5.                             The Issuer is obliged and permitted to act on behalf
of a Warrantholder in relation to the execution of a Deed of Issue, if such
Warrantholder has granted the Issuer a power of attorney in the Exercise Notice
authorising the Issuer to act on behalf of it in relation to the execution of
the Deed of Issue.

 

4.6.                             The Issuer hereby grants an irrevocable power of
attorney with full right of substitution to each Warrantholder to act on behalf
of the Issuer in relation to the execution of a Deed of Issue, to the extent
such Warrantholder has sent the Issuer an Exercise Notice and the Issuer has
failed to perform its obligations pursuant to clause 4.4 and 4.5 (this power of
attorney can also be exercised and is valid even if there is a conflict or
possible conflict of interest within the meaning of section 68 of book 3 of the
Dutch Civil Code (Selbsteintritt)). The Issuer is
obliged to grant a further power of attorney authorising a Warrantholder to act
on behalf of the Issuer in relation to the execution of a Deed of Issue, to the
extent such Warrantholder has sent the Issuer an Exercise Notice and requires
the Issuer to grant it such further power of attorney.

 

5.                                     ADJUSTMENTS

 

5.1.                             Adjustment
for stock splits, dividends and combinations

 

If the Issuer:

 

5.1.1.                              pays a dividend in Equity
Shares or makes a distribution in Equity Shares on the then outstanding Equity
Shares;

 

5.1.2.                              subdivides its outstanding
Equity Shares into a greater number of Equity Shares;

 

5.1.3.                              combines its outstanding
Equity Shares into a smaller number of Equity Shares;

 

5.1.4.                              makes a distribution to the
holders of its then outstanding Equity Shares in shares of its share capital
other than Equity Shares;

 

5.1.5.                              repurchases (inkopen) outstanding Equity Shares; or

 

5.1.6.                              issues any shares in its
share capital in connection with a recapitalisation or reclassification of its
then outstanding Equity Shares,

 

then the number of Shares to be acquired upon
exercise of a Warrant shall be proportionally adjusted so that each
Warrantholder will receive, upon exercise, the aggregate number and kind of
shares of capital stock which it would have owned immediately following such
action if such Warrantholder had exercised its Warrant in full immediately
prior to such action. Upon such adjustment of the number of Shares to be
acquired upon exercise of a Warrant, the Exercise Price shall be equitable and
proportionally adjusted so that the aggregate consideration payable by such
Warrantholder upon exercise of its Warrant remains the same.

 

4

 

An adjustment made pursuant to this clause 5.1
shall become effective immediately after the payment or distribution in the
case of a dividend or distribution and immediately after the effective date in
the case of a subdivision, combination, repurchase, recapitalisation or
reclassification.

 

If as a result of an adjustment made pursuant
to this clause 5.1 and 5.6, a Warrantholder upon exercise may receive shares of
two or more classes or series of shares in the capital of the Issuer, the Board
shall determine the allocation of the applicable adjusted Exercise Price
between the classes or series of shares. After such allocation, the exercise
privilege and the Exercise Price of each class or series of shares shall
thereafter be subject to further adjustment on terms comparable to those
applicable to Equity Shares in this clause 5.

 

Such adjustments shall be made successively
whenever any event listed above shall occur.

 

5.2.                             Adjustment
for rights issues

 

If the Issuer distributes any rights, options
or warrants to the holders of its Equity Shares to acquire or purchase Equity
Shares or securities convertible into, or exchangeable or exercisable for,
Equity Shares at a price per share (or with an initial conversion, exchange or
exercise price) less than the then current Exercise Price, the then current
Exercise Price shall be adjusted in accordance with the following formula:

 

	
  E’  =  E  x

  	
    O + N x P
             E       

  
	
   

  	
   

  
	
   

  	
  O + N

  

 

where:

 

E’ = the adjusted Exercise Price.

 

E = the Exercise Price.

 

O = the number of Equity Shares outstanding
immediately prior to the applicable dilutive issuance.

 

N = the number of additional Equity Shares
issued (or deemed to be issued) in the dilutive issuance.

 

P = the conversion, exchange or exercise price
per share of the additional Equity Shares issued (or deemed to be issued) in
the dilutive issuance.

 

The adjustment shall be made successively
whenever any such rights, options or warrants are issued and shall become
effective immediately after the record date for the determination of
stockholders entitled to receive the rights, options or warrants.  If at the end of the period during which such
rights, options or warrants are exercisable, not all rights, options or
warrants shall have been exercised, the Exercise Price shall be immediately
readjusted to what it would have been if “N” in the above formula had been the
number of shares actually issued.

 

5

 

5.3.                             Adjustment
for Equity Shares issue

 

If the Issuer issues Equity Shares or
securities convertible into, or exchangeable or exercisable for, Equity Shares
for a consideration per share less than the then current Exercise Price, the
then current Exercise Price shall be adjusted in accordance with the formula:

 

	
  E’  =  E  x

  	
    O + N x P
             E       

  
	
   

  	
   

  
	
   

  	
    O + N

  

 

where:

 

E’ = the adjusted Exercise Price.

 

E = the then current Exercise Price.

 

N = the number of additional Equity Shares
issued (or deemed to be issued) in the dilutive issuance.

 

O = the number of Equity Shares outstanding
immediately prior to the applicable dilutive issuance.

 

P = the consideration price per share received
for the issuance of such additional shares.

 

The adjustments shall be made successively
whenever any such issuance is made, and shall become effective immediately
after such issuance.

 

This clause 5.3 does not apply to:

 

5.3.1.                              any of the transactions
described in clauses 5.1 or 5.2;

 

5.3.2.                              the exercise of Warrants, or
the conversion or exchange of other securities convertible or exchangeable for
Equity Shares;

 

5.3.3.                              Equity Shares issued to the
Issuer’s employees, consultants or directors under bona fide benefit plans
validly adopted by the Board, if such Equity Shares would otherwise be covered
by this clause 5.3;

 

5.3.4.                              Equity Shares issuable upon
the exercise of rights or warrants issued to the holders of Equity Shares; or

 

5.3.5.                              Equity Shares issued to
shareholders of any person which merges with or into the Issuer, provided that
the applicable merger has been approved by the Board.

 

5.4.                             Notice
of adjustment and certain transactions

 

If:

 

5.4.1.                              the Issuer takes any action
that would require an adjustment to the Exercise Price 

 

6

 

pursuant to clauses 5.1, 5.2 or 5.3 or otherwise;

 

5.4.2.                              the Issuer is liquidated,
dissolved or merged; or

 

5.4.3.                              the Exercise Price is
adjusted,

 

the Issuer shall notify the Warrantholders in
accordance with clause 8.3, stating all relevant details of the notified event
and stating the envisaged date of the notified event. The Issuer shall send the
notice at least 15 Business Days prior to such envisaged date.

 

5.5.                             Determination

 

Any determination that the Issuer must make
pursuant to clauses 5.1, 5.2 or 5.3 shall be made in good faith and shall bear
in mind the interest of the Warrantholders. Any such determination shall only
become conclusive and binding on the Warrantholders if and to the extent the
Warrantholder Majority has agreed to the determination in writing.

 

5.6.                             Adjustment
in number of shares

 

In the event of any adjustment made pursuant to
clauses 5.2 or 5.3, the number of Warrant Shares issuable upon the Exercise of
any Warrant shall be increased or decreased, as applicable, so that it is equal
to the number of Warrant Shares in effect immediately prior to such adjustment
multiplied by a quotient, the numerator of which is the Exercise Price in
effect immediately prior to such adjustment, and the denominator of which is
the Exercise Price in effect immediately after such adjustment.

 

5.7.                             Undertaking
to issue additional Warrant Shares

 

If and to the extent that as a result of one or
more adjustments to the number of Shares to be issued upon exercise of the
Warrants in accordance with this clause 5, the Resolution does not authorise
the issuance of a sufficient number of Shares to settle the exercise of all
Warrants, the Issuer shall procure (i) that the Board shall adopt an
additional resolution to authorise the issuance of such number of Shares as
required as a result of such adjustments and (ii) that the board of
supervisory directors approves such additional resolution.

 

6.                                     NO DILUTION OR IMPAIRMENT

 

6.1.                             If any event shall occur as to which the provisions of
clause 5 are not strictly applicable but the failure to make any adjustment
would adversely affect the rights represented by the Warrants in accordance
with the essential intent and principles of clause 5, then, in each such case,
the Board may agree with the Warrantholder Majority to make such adjustments to
the Warrants, the Exercise Price and/or the number of Warrant Shares to be
obtained upon exercise of the Warrants on a basis consistent with the essential
intent and principles established in clause 5, necessary to preserve, without
dilution, the rights, represented by the Warrants. Upon reaching such
agreement, the Issuer will promptly make the agreed adjustments.

 

6.2.                             The Issuer will not, by amendment of its articles of
association or through any merger, demerger, reorganization, transfer of
assets, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of the
Warrants or this Warrant Agreement, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the holder of
the Warrants against dilution or 

 

7

 

other impairment.

 

7.                                     COVENANTS OF THE ISSUER

 

7.1.                             The Issuer undertakes that during the Warrant Period
(except with the prior written consent of the Warrantholders):

 

7.1.1.                              it will at all times keep
available for issue sufficient authorised share capital to satisfy in full the
exercise of all the unexercised Warrants;

 

7.1.2.                              it will not modify the
rights attached to any Shares in any way which could reasonably be expected to
affect adversely the rights of the Warrantholders; and

 

7.1.3.                              it will not amend its
articles of association in any way which would prevent any Warrantholder from
exercising its Warrants.

 

8.                                     MISCELLANEOUS PROVISIONS

 

8.1.                             Winding
up of the Issuer

 

If, prior to the end of the Warrant Period, an
order is made or an effective resolution is passed for winding up the Issuer,
each Warrantholder who pays the Exercise Price, will (at its election, in lieu
of payments which would otherwise have been due to it in respect of its Warrant
Shares) be treated as if, immediately before the date of such order or
resolution, all the Warrants had been exercised in full and shall be entitled
to receive out of the assets which would otherwise be available in the
liquidation such sum (if any) as it would have received had it been the holder
of the Shares to which it would have become entitled by virtue of such
exercise. For the purposes of this clause 8.1, the Warrantholders will be
regarded as creditors within the meaning of section 23b of Book 2 of the
Netherlands Civil Code.

 

8.2.                             Fractional
interests

 

The Issuer shall not be required to issue
fractional Warrant Shares on the exercise of Warrants. If more than one Warrant
shall be presented for exercise in full at the same time by the same holder,
the number of full Warrant Shares which shall be issuable upon the exercise
thereof shall be computed on the basis of the aggregate number of Warrant
Shares purchasable on exercise of the Warrants so presented. If any fraction of
a Warrant Share would, except for the provisions of this clause 8.2, be
issuable on the exercise of any Warrants (or specified portion thereof), the
Issuer shall pay to the Warrantholder an amount in cash equal to the Exercise
Price multiplied by such fraction.

 

8.3.                             Notices

 

All notices, consents, waivers and other
communications under this Warrant Agreement must be in writing in English and
delivered by hand or sent by registered mail, express courier, fax or e-mail to
the appropriate addresses and fax numbers set out below, or to such addresses
and facsimile numbers as a Party may notify to the other Parties from time to
time. A notice shall be effective upon receipt and shall be deemed to have been
received at the time of delivery, if delivered by hand, registered mail or
express courier or at the time of successful transmission, if delivered by fax
or e-mail.

 

To the Issuer:

 

8

 

Name: Tornier B.V.

Primary address: Fred. Roeskestraat 123, 1076
EE Amsterdam, the Netherlands

Phone: +31-20-577-1177

Fax number: +31-20-577-1188

Attention: Guido Nieuwenhuizen

 

Secondary address: 3601 West 76th Street, Suite 200,
Edina, MN 55435

United States of America

Phone: +1-952-426-7676

Fax number: +1-952-995-7446

E-mail: dkohrs@tornierhq.com

Attention: Douglas Kohrs

 

To WP:

 

Name: Warburg Pincus (Bermuda) Private Equity
IX, L.P.

Address: 466 Lexington Avenue, New York, NY,
10017

Phone: +1-212-878-6200

Fax number: +1-212-716-5040

E-mail: scarney@warburgpincus.com

Attention: Sean Carney

 

To Lenders:

 

Name: Vertical Fund I, L.P.

Address: 25 Deforest Avenue, Summit, NJ 07901, United States of America

Phone:
+1-908-277-3737

Email: remmitt@vertical-group.com

Attention: Dick Emmitt

 

Name: Vertical Fund II, L.P.

Address: 25 Deforest Avenue, Summit, NJ 07901,
United States of America

Phone: +1-908-277-3737

Email: remmitt@vertical-group.com

Attention: Dick Emmitt

 

Name: Split Rock Partners, LP

Address: 10400 Viking Drive, Suite 550,
Minneapolis, MN 55344, United States of America

Phone: +1-952-995-7492

Email: steve@splitrock.com

Attention: Steve Schwen

 

Name: KCH Stockholm AB

Address: Postfach 157 — Bahnhof Park 4,
CH-6341 BAAR, Switzerland

Phone: +41-41-76-82-121

Email: afs@databaar.ch 

Attention: Hans Jórin, AFS Atlas Finanz Services AG

 

Name: Douglas Kohrs

Address: 7444 Shannon Drive, Edina, MN 55439,
United States of America

Phone: +1-952-941-8515

Email: Dkohrs@tornierhq.com

 

9

 

Name: Rod Mayer

Address: 2607 Wildwood Lane, Winona, IN
46590, United States of America

Phone: +1-574-253-1594

E-mail: Rmayer@tornier.com

 

Name:
Diane Doty

Address: 27860 Brynmawr Place, Shorewood,
MN 55331, United States of America

Phone: +1-952-401-3660

Email: Mdoty1@msn.com

 

Robert Anderson

Address: 1960 Bechelli Lane, Redding,
CA 96002, United States of America

Phone: +1-530-221-0673

E-mail: rcaredding@aol.com

 

Ralph Barisano

Address: 29 Chicory Road, Westford, MA 01886,
United States of America

Phone: +1-978-392-0954

E-mail: Rbarisanojr@comcast.net;
Rbarisano@tornierhq.com

 

Jamal Rushdy

Address: 17151 Acorn Ridge, Eden Prairie, MN
55347, United States of America

Phone: +1-952-303-4382

E-mail: jrushdy@tornierhq.com

 

James Christopher Harber

Address: 12819 Briarcrest Place, San Diego, CA
92130, United States of America

Phone: +1-954-993-0646

Email: Charber@tornier.com

 

Jean-Marc Idier

Address: Chem Pinardes, 38330 Saint Nazaire
Les Eymes, France

Phone: +33 04 76 52 79 12

E-mail: jean-marc.idier@tornier.fr

 

Jim Kwan

Address: 2 W. Bay Lane, North Oaks, MN 55127,
United States of America

Phone: +1-651-486-2934

Email: Kwanj01@comcast.net;
Jkwan@tornierhq.com

 

8.4.                             Expenses

 

The Issuer shall pay all costs and expenses in
connection with this Warrant Agreement, the Warrants and the exercise and
execution thereof, to the extent the Issuer would have been obliged to do so,
if it had borrowed from a third party.

 

8.5.                             Entire
agreement

 

This Warrant Agreement constitutes the entire
agreement between the Parties relating to the Warrants. This Warrant Agreement
supersedes and terminates any earlier agreements, either verbally or in writing,
between the Parties and no Party shall have any right or remedy against any
other Party arising out of or in connection with any such earlier agreements
unless stated otherwise in this Warrant Agreement.

 

10

 

8.6.          Amendment

 

This Warrant Agreement may only be amended by
mutual agreement in writing between the Issuer and the Warrantholder Majority.

 

8.7.          Partial
invalidity

 

The invalidity or unenforceability of any
provision of this Warrant Agreement shall not affect the validity or
enforceability of any other provision of this Warrant Agreement. Any such
invalid or unenforceable provision shall be replaced or be deemed to be
replaced by a provision that is considered to be valid and enforceable. The
interpretation of the replacing provisions shall be as close as possible to the
intent of the invalid or unenforceable provision.

 

8.8.          Copies

 

The Issuer shall keep copies of this Warrant
Agreement and any notices given or received hereunder available for inspection
by the Warrantholders during normal business hours at its principal office.

 

8.9.          Governing
law

 

This Warrant Agreement is governed by the laws
of the Netherlands.

 

8.10.        Jurisdiction

 

The competent court in Amsterdam, the
Netherlands shall have exclusive jurisdiction to settle any dispute in
connection with this Warrant Agreement without prejudice to the right of appeal
and that of appeal to the Supreme Court.

 

11

 

EXECUTED ON 29 FEBRUARY
2008,

 

	
  Tornier B.V.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ G.F.X.M. Nieuwenhuizen

  	
   

  	
  /s/ Eric Liu

  
	
  By:     G.F.X.M.
  Nieuwenhuizen

  	
   

  	
  By:     Eric Liu

  
	
   

  	
   

  	
   

  
	
  Title: Managing Director A

  	
   

  	
  Title: Managing Director A

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Warburg Pincus (Bermuda)
  Private Equity IX, L.P.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:  Warburg
  Pincus (Bermuda) Private Equity Ltd., its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: Sean D. Carney

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: Authorised Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vertical Fund I, L.P.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ John E. Runnells

  	
   

  	
   

  
	
  By:     John E. Runnells

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vertical Fund II, L.P.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ John E. Runnells

  	
   

  	
   

  
	
  By:     John E. Runnells

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Douglas Kohrs

  	
   

  	
   

  
	
  Mr. Douglas Kohrs

  	
   

  	
   

  

 

12

 

	
  Split Rock Partners, LP

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: Split Rock Partners Management, LLC, its
  General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Steven L.P. Schwen

  	
   

  	
   

  
	
  By: Steven L.P. Schwen

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: Chief Financial Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KCH Stockholm AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Rod Mayer

  	
   

  	
   

  
	
  Mr. Rod Mayer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Diane Doty

  	
   

  	
   

  
	
  Ms. Diane Doty

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Robert Anderson

  	
   

  	
   

  
	
  Mr. Robert Anderson

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Ralph Barisano

  	
   

  	
   

  
	
  Mr. Ralph Barisano

  	
   

  	
   

  

 

13

 

	
   

  	
   

  	
   

  
	
  Mr. Jamal Rushdy

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ James Christopher Harber

  	
   

  	
   

  
	
  Mr. James Christopher
  Harber

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Jean-Marc Idier

  	
   

  	
   

  
	
  Mr. Jean-Marc Idier

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Jim Kwan

  	
   

  	
   

  
	
  Mr. Jim Kwan

  	
   

  	
   

  

 

14

 

SCHEDULE
1 — FORM OF DEED OF ISSUE

 

ISSUE OF SHARES SB/6005911/*.UVE

 

Tornier b.v. date

 

Today,

 

, appeared before me,

 

Paul Hubertus Nicolaas Quist, civil-law notary in Amsterdam:

 

acting as holder of a power
of attorney of:

 

the company with limited
liability (besloten vennootschap met beperkte
aansprakelijkheid) Tornier B.V.,
having its seat in Amsterdam, its address at 1076 EE Amsterdam, Fred.
Roeskestraat 123, filed at the Trade Register under number 34250781 and with
number B.V. 1383148 (the ‘Company’);

 

the [Warrant
holder] [details of warrant holder]

 

Powers of attorney

 

./.             The powers of attorney are evidenced by two (2) private deeds.

 

The appearing person
declared:

 

Warrant Agreement

 

./.             The Company has entered into a warrant agreement on
[*] 2008 (the ‘Agreement’), with the Original
Warrant Holders, as defined in the Agreement, among other things with respect
to rights to acquire [*] ordinary shares in the capital of the Company, each
with a par value of one cent (EUR 0.01), a copy of which Agreement will be
attached to this deed.

 

Resolution to grant rights
to acquire shares

 

On [*] 2008 the Management
Board of the Company, authorised to do so in accordance with the provisions of
the articles of association of the Company, resolved to grant a right to [Warrant holder] to acquire ordinary shares in the capital of
the Company, each with a par value of one cent (EUR 0.01), at par, under the
obligation to make the payment as provided hereinafter, pursuant to the
Agreement (the ‘Resolution’).

 

Article 6 of the
articles of association of the Company provides that upon the grant of a right
to shares the shareholders will not have a pre-emption right.

 

./.             Which resolutions are evidenced by minutes of the
Management Board Meeting, a copy of which will be attached to this deed.

 

./.             In accordance with article 4 paragraph 1 of the articles
of association of the Company, the Supervisory Board granted its approval to
the Resolution in its meeting held on [*] 2008, a copy of the minutes of this
meeting will be attached to this deed.

 

15

 

Exercise of warrant

 

./.             In accordance with the Agreement, the [Warrant holder] has validly exercised his warrant to acquire
[*] shares in the capital of the Company (the ‘Shares’),
by delivering a properly executed exercise notice to the Company in accordance
with clause 4 of the Agreement, and having paid the exercise price as described
in the Agreement, a copy of which notice will be attached to this deed.

 

Method of payment

 

[Warrant
holder] is to pay up on the Shares in a foreign currency, being [*]

 

Consent payment in a
foreign currency

 

The Management Board of the
Company, has approved in its meeting referred to above, the payment on the
Shares in a foreign currency, as referred to in article 2:191a paragraph 2
Dutch Civil Code.

 

Issue of Shares

 

To implement the Resolution
and the Agreement, and the exercise of the warrant by the [Warrant
holder], the Company herewith issues the Shares to [Warrant Holder] under the obligation to pay up the Shares in
the method referred above.

 

The Shares will be numbered
[*] to [*] inclusive.

 

[Warrant
Holder] herewith accepts the Shares under the obligation and terms
referred to above.

 

Payment

 

The total amount to be paid
on the Shares is [USD 5.66 x # of shares].

 

The Company confirms that
the amount of [*] has been paid in cash.

 

A bank has made a statement
concerning payment in a foreign currency as referred to in article 2:203a
paragraph 2 Dutch Civil Code, stating that the amount paid in a foreign
currency can be freely converted into [*], so that the payment in the foreign
currency at least equals the required amount to be paid up on the Shares, being
an amount of [*] (the ‘Bank statement’).

 

To the extent the amount
paid exceeds the amount of [*] the surplus will be considered to be share
premium (agio).

 

Costs, taxes

 

The costs of this deed and
the execution thereof will be for the account of the Company.

 

The Company is not a body as
referred to in article 4 Act on the taxes on legal transactions (Wet op belastingen van rechtsverkeer), as a result whereof
no taxes on legal transactions are due as a consequence of the present issue.

 

Shareholders’ register

 

The Company declared to make
the appropriate entry in the shareholders’ register concerning this issue.

 

16

 

Attached documents

 

./.             Furthermore, to this deed will be attached:

 

the powers of attorney;

 

a copy of the Agreement;

 

the Bank statement;

 

a copy of the minutes of the
meeting of the Management Board, evidencing the decisions indicated in this
deed;

 

a copy of the minutes of the
meeting of the Supervisory Board, evidencing the decisions indicated in this
deed;

 

This deed was executed today
in Amsterdam.

 

The substance of this deed
was stated and explained to the appearing person.

 

The appearing person declared
not to require a full reading of the deed, to have taken note of the contents
of this deed and to consent to it.

 

Subsequently, this deed was
read out in a limited form, and immediately thereafter signed by the appearing
person and myself, civil-law notary, at

 

17

 

SCHEDULE
2 — FORM OF EXERCISE NOTICE

 

EXERCISE
NOTICE

 

	
  To:

  	
  Tornier B.V.

  
	
   

  	
  Fred. Roeskestraat 123

  
	
   

  	
  1076 EE Amsterdam

  
	
   

  	
  The Netherlands

  

 

Dear Sirs,

 

We refer to a warrant agreement dated 29 February 2008
between, inter alios, yourselves and [insert name
Warrantholder] (the “Warrant Agreement”).

 

Capitalised terms shall be used herein as such
terms are defined in the Warrant Agreement, unless defined otherwise herein.

 

We
hold [insert number] Warrants, which gives us the right to acquire [insert
number] of Shares.

 

We
hereby notify you that we wish to exercise our Warrants / [insert number] of
our Warrant.

 

In
accordance with clause 4.3 of the Warrant Agreement you are obliged within seven Business Days after receipt of this
Exercise Notice to procure
the execution of the Deed of Issue providing for the issue of such number of
Shares that correspond with the number of Warrants exercised pursuant to this
Exercise Notice.

 

[We hereby authorise you to represent us in
relation to the execution of the Deed of Issue] [In accordance with clause 4.6
of the Warrant Agreement, we reserve the right to represent you in relation to
the execution of the Deed of Issue, notwithstanding your obligation under
clause of the Warrant agreement to grant further power of attorney authorising
us to represent you in relation to the execution of the Deed of Issue.]

 

Please notify us within two Business Days when
the Deed of Issue will be executed and which notary will execute the Deed of
Issue.

 

Sincerely,

 

[name]

 

18

 

SCHEDULE
3 - WARRANT REGISTER

 

	
   

  	
   

  	
  Warrantholders

  	
   

  	
  Warrants

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Warburg Pincus (Bermuda) Private Equity IX,
  L.P.

  	
   

  	
  6,633,216

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Vertical Fund I, L.P.

  	
   

  	
  846,742

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Vertical Fund II, L.P.

  	
   

  	
  249,484

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Douglas Kohrs

  	
   

  	
  150,926

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Split Rock Partners, LP

  	
   

  	
  311,251

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  KCH Stockholm AB

  	
   

  	
  939,929

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Rod Mayer

  	
   

  	
  44,580

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Diane Doty

  	
   

  	
  44,580

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Robert Anderson

  	
   

  	
  20,678

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Ralph Barisano

  	
   

  	
  6,982

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Jamal Rushdy

  	
   

  	
  6,982

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  James Christopher Harber

  	
   

  	
  5,102

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Jean-Marc Idier

  	
   

  	
  2,686

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Jim Kwan

  	
   

  	
  1,880

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  9,265,018

  	
   

  

 

19

 

SCHEDULE
4 - FORM OF TRANSFER INSTRUMENT

 

TRANSFER
INSTRUMENT

 

[date]

 

[·]
the “Transferee”

 

[·]
the “Transferor”

 

The Transferor is the holder of [·] Warrants under a warrant agreement dated 29 February 2008
between, inter alios, [insert name Warrantholder]
and Tornier B.V. (the “Warrant Agreement”).

 

Capitalised terms shall be used herein as such
terms are defined in the Warrant Agreement, unless defined otherwise herein.

 

The Transferee confirms and represents that (i) it
is a Shareholder, (ii) the Warrantholder Majority has given its written
consent to the transfer of Warrants pursuant to this Transfer Instrument and (iii) it  is bound by all of the terms and conditions
of the Warrant Agreement as from the moment of transfer of Warrants pursuant to
this Transfer Instrument, in accordance with clause 3.1.

 

The Transferor hereby transfers [·] of its Warrants to the Transferee in accordance with clause 3 of the
Warrant Agreement and the Transferee hereby accepts such Warrants from the
Transferor.

 

The Issuer acknowledges the transfer of
Warrants pursuant to this Transfer Instrument and undertakes to reflect such
transfer in the Warrant Register as soon as reasonable possible.

 

 

	
   

  	
   

  
	
  [·]
  the Transferor

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [·]
  the Transferee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Tornier B.V. the Issuer (for acknowledgment
  purposes)

  	
   

  

 

20Exhibit
10.17

 

 

DATED 29 FEBRUARY 2008

 

 

TORNIER B.V.

 

as the Issuer

 

 

 

EUR 34,500,000  LOAN NOTE

INSTRUMENT

 

 

 

 

 

TABLE OF CONTENTS

 

	
  Clause

  	
   

  	
  Headings

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  ISSUE OF NOTES

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  INTEREST

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  EARLY REPAYMENT

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  ENTITLEMENT TO CERTIFICATE AND NOTE REGISTER

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  TRANSFER OF NOTES

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  RANKING

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  NO LISTING

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  5

  
	
   

  	
   

  	
  10.1.

  	
  Binding obligations

  	
   

  	
  5

  
	
   

  	
   

  	
  10.2.

  	
  Non-conflict with other obligations

  	
   

  	
  5

  
	
   

  	
   

  	
  10.3.

  	
  Power and authority

  	
   

  	
  6

  
	
   

  	
   

  	
  10.4.

  	
  Validity and admissibility in evidence

  	
   

  	
  6

  
	
   

  	
   

  	
  10.5.

  	
  Governing law and enforcement

  	
   

  	
  6

  
	
   

  	
   

  	
  10.6.

  	
  No filing or stamp taxes

  	
   

  	
  6

  
	
   

  	
   

  	
  10.7.

  	
  No default

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  GENERAL PROVISIONS

  	
   

  	
  6

  
	
   

  	
   

  	
  11.1.

  	
  Notices

  	
   

  	
  6

  
	
   

  	
   

  	
  11.2.

  	
  Expenses

  	
   

  	
  8

  
	
   

  	
   

  	
  11.3.

  	
  Entire agreement

  	
   

  	
  9

  
	
   

  	
   

  	
  11.4.

  	
  Amendment

  	
   

  	
  9

  
	
   

  	
   

  	
  11.5.

  	
  Partial invalidity

  	
   

  	
  9

  
	
   

  	
   

  	
  11.6.

  	
  Copies

  	
   

  	
  9

  
	
   

  	
   

  	
  11.7.

  	
  Governing law

  	
   

  	
  9

  
	
   

  	
   

  	
  11.8.

  	
  Jurisdiction

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1 — FORM OF
  CERTIFICATE

  	
   

  	
   

  
	
  SCHEDULE 2 — REGISTER

  	
   

  	
   

  

 

i

 

THIS INSTRUMENT is made on 29 February 2008 by:

 

(1)                                  Tornier B.V., a Issuer incorporated under the laws of
The Netherlands (the “Issuer”); and

 

(2)                                  Warburg Pincus (Bermuda) Private Equity IX, L.P.,
Vertical Fund I, L.P., Vertical Fund II, L.P., Mr. Douglas Kohrs, Split
Rock Partners, LP, KCH Stockholm AB, Mr. Rod Mayer, Ms. Diane Doty, Mr. Robert
Anderson, Mr. Ralph Barisano, Mr. Jamal Rushdy, Mr. James
Christopher Harber, Mr. Jean-Marc Idier and Mr. Jim Kwan (the “Lenders”).

 

RECITALS:

 

(3)                                  TMG Holdings Coöperatief U.A. (The Netherlands), TMG
Partners U.S., LLC, Vertical Fund I L.P., Vertical Fund II L.P. TMG Partners II
LLC, DVO TH, LLC and Mr. Douglas Kohrs (the “Shareholders”)
hold all of the issued shares in the Issuer.

 

(4)                                  The Issuer has authorised the creation and issue of
EUR 34,500,000 promissory notes due 28 February 2013 (the “Notes”).

 

IT IS AGREED as follows:

 

1.                                      DEFINITIONS

 

1.1.                              In this Instrument the
following definitions have the following meaning:

 

“Board” means
the board of managing directors of the Issuer;

 

“Business Day”
means a day (other than a Saturday or Sunday) on which banks are open for
general business in The Netherlands;

 

“Certificate”
means a Note certificate substantially in the form set out in Schedule 1;

 

“Event of Default”
has the meaning ascribed thereto in clause 5.1;

 

“Lenders” has
the meaning ascribed thereto in the opening of this Instrument;

 

“Maturity Date”
means the earlier of 28 February 2013 and the date of any acceleration by
the Required Noteholders pursuant to clause 5.2;

 

“Noteholder”
means a person that holds one or more Notes and is entered into the Register as
the holder of such Notes;

 

“Notes” has the
meaning ascribed thereto in recital (2) above;

 

“Register” means
the Notes register referred to in clause 6;

 

“Required Noteholders”
means the Noteholders holding Notes in an aggregate principal amount in excess
of 50 percent of the aggregate principal amount of all outstanding Notes;

 

“Shareholders”
has the meaning ascribed thereto in recital (1) above;

 

“Tax” means all
forms of local and national taxes, duties, levies, social security
contributions or other imposts or withholdings imposed by or payable to any Tax
Authority whether direct or 

 

1

 

indirect, chargeable or attributable directly
or primarily to the Issuer or to any other person and irrespective of any such
taxes, duties, levies, social security contributions or other imposts or withholdings
being recoverable from any other person and including penalties, additions,
interest, costs and expenses and any payment obligation by way of
reimbursement, recharge, indemnity or damages relating to such taxes, duties,
levies, social security contributions or other imposts or withholdings;

 

“Tax Authority”
means any local or national authority in or outside The Netherlands having the
power to impose or collect Tax;

 

“WP”
means Warburg Pincus (Bermuda) Private Equity IX, L.P. and certain of its
affiliates.

 

1.2.                             In this Instrument, unless
otherwise specified:

 

1.2.1.                              the masculine gender shall
include the feminine and the neuter and vice versa;

 

1.2.2.                              references to a person shall
include a reference to any individual, Issuer, association, partnership or
joint venture;

 

1.2.3.                              unless the context requires
otherwise, words in the singular shall include the plural and vice versa;

 

1.2.4.                              the headings are for
identification only and shall not affect the interpretation of this Instrument.

 

2.                                     ISSUE OF NOTES

 

2.1.                             The Issuer hereby issues the Notes to the Lenders and
the Lenders hereby accept the issue of the Notes, subject to the terms and
conditions of this Instrument.

 

2.2.                             The Issuer shall apply all proceeds from the Notes
exclusively towards the development and operation of the Issuer or its direct
or indirect subsidiaries. For the avoidance of doubt, the proceeds from the
Notes shall not be used to (i) repurchase or pay any dividends on any of
the Issuer’s or of its direct or indirect subsidiaries’ existing outstanding
share capital or (ii) repay any of the Issuer’s or of its direct or
indirect subsidiaries’ existing indebtedness.

 

3.                                     INTEREST

 

3.1.                             Until the Notes are redeemed, paid-in-kind interest
(compounded) will accrue on the principal amount of the Notes (including any
interest accrued up to the date on which such principal amount is determined)
from time to time outstanding at the rate of 8.0 per cent. per annum, payable
on 30 June and on 31 December of each year. Following the occurrence
of an Event of Default, and so long as an Event of Default is continuing, upon
written notice from the Required Lenders, paid-in-kind interest (compounded)
will accrue on the principal amount of the Notes (including any interest
accrued up to the date on which such principal amount is determined) from time
to time outstanding at the rate of 10.0 per cent. per annum, payable on 30 June and
on 31 December of each year.

 

3.2.                             The first payment of interest shall be made on 30 June 2008
and shall be of an amount calculated on the basis of the number of days lapsed
in the period between the date of issue of the Notes and 30 June 2008 (on
a basis of 365 calendar days).

 

3.3.                             If any day on which interest hereunder is due to be
paid is not a Business Day, it shall be 

 

2

 

postponed to the next day which is a Business
Day.

 

3.4.                             Any principal, interest or other moneys payable on or
in respect of any Notes by the Issuer shall be paid by bank transfer to the
Noteholder’s bank account as specified in writing to the Issuer from time to
time by the relevant Noteholder in Euros and in immediately available
funds.  All payments hereunder shall be
made to the Noteholders pro rata in accordance with their percentage ownership
of the principal amount of all outstanding Notes. Any Noteholder who receives
more than his pro rata share of any payment made hereunder shall pay over such
portion of the amount received to the other Noteholders, pro rata, so that all
Noteholders have received their pro rata share of such payment.

 

4.                                     EARLY REPAYMENT

 

4.1.                             At any time on or after the date of issue of the
Notes, the Issuer shall be entitled to repay the whole or any part of the Notes
to the Noteholders, ratably as provided in clause 3.4 of which such Noteholders
are the registered holder, such Notes to be repaid at par together with
interest accrued in respect thereof to the date of repayment. The Issuer shall
send a notice stating that it intends to repay the whole or any part of the
Notes to each Noteholder at least 15 Business Days prior to the date of
repayment.

 

4.2.                             Save to the extent previously purchased by the Issuer
or repaid, Notes shall be repaid at par together with accrued interest thereon
as to the whole principal amount of the Notes on the Maturity Date.

 

4.3.                             On any repayment of the Notes in accordance with the
provisions hereof each relevant Noteholder shall be bound to deliver to the
Issuer the relevant Certificate. If any Certificate so to be delivered to the
Issuer includes any Notes not redeemable upon the expiration of any such notice
a new Certificate for the balance of the Notes not redeemable on that occasion
shall be issued to the Noteholder.

 

5.                                     EVENTS OF DEFAULT

 

5.1.                             Each of the following events or circumstances is an
Event of Default:

 

5.1.1.                              if the Issuer fails to pay
any principal which ought to be paid in accordance with this Instrument on the
date due;

 

5.1.2.                              any representation or
warranty contained herein shall prove to be false when made in any material
respect;

 

5.1.3.                              the Issuer or any of its
direct or indirect subsidiaries shall default under any indebtedness for
borrowed money or other indebtedness evidenced by notes, bonds or debentures
(collectively, “Indebtedness”) in an aggregate
outstanding principal amount of EUR 1,000,000 or more or in the payment of any
guarantee obligation in respect of such Indebtedness in an amount of EUR
1,000,000 or more, beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness or guarantee obligation
was created the effect of which default is to cause, or to permit the holder or
holders of such Indebtedness or beneficiary or beneficiaries of such guarantee
obligation (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required,
such Indebtedness to become due prior to its stated maturity or such guarantee
obligation to become payable or any such Indebtedness shall remain unpaid at
its stated maturity;

 

3

 

5.1.4.                              if an order is made or an
effective resolution passed for winding up the Issuer other than a winding-up
for the purposes of amalgamation or reconstruction approved in writing by the
Required Noteholders (such approval not to be unreasonably withheld or
delayed);

 

5.1.5.                              if any holder of security
granted by the Issuer (a “Security Holder”)
takes possession of or an administrative receiver, receiver or administrator is
appointed in respect of the Issuer or the whole or a substantial part of its
property or assets;

 

5.1.6.                              if the Issuer makes a
proposal to its creditors for a suspension of payment (surceance
van betaling);

 

5.1.7.                              if the Issuer or any of its
direct or indirect subsidiaries seeks protection (voluntarily or involuntarily)
under any insolvency or bankruptcy laws; and

 

5.1.8.                              if the Issuer does not
comply with any other provision of this Instrument and such default is not
remedied within 15 calendar days of written notice from the Required Noteholders
of such default.

 

5.2.                             On and at any time after the occurrence of an Event of
Default which is continuing the Required Noteholders may declare that all or
part of the Notes, together with accrued interest, and all other amounts
accrued or outstanding under this Instrument be immediately due and payable,
whereupon they shall become immediately due and payable.

 

5.3.                             Notwithstanding any other provision of this
Instrument, no individual Noteholder shall have the right to sue or otherwise
take any enforcement action with respect to this Instrument or the Notes. Only
the Required Noteholders may, collectively, act to enforce this Instrument or
any Note.

 

6.                                     ENTITLEMENT TO CERTIFICATE AND NOTE
REGISTER

 

6.1.                             Every Noteholder will be entitled to a Certificate stating
the amount of the Notes held by him being EUR 1,000 Notes or a multiple thereof
and every such Certificate shall refer to this Instrument constituting the
Notes. Every Certificate shall bear a denoting number.

 

6.2.                             A Register of the Notes will be kept by the Issuer as
attached as Schedule 2 hereto and there shall be entered in such
register:

 

6.2.1.                              the names and addresses of
the holder(s) for the time being of the Notes;

 

6.2.2.                              the amount of the Notes held
by every registered holder;

 

6.2.3.                              the date at which the name
of every such registered holder is entered in respect of the Notes standing in
his name;

 

6.2.4.                              the serial number of each
Certificate issued and the date of the issue thereof; and

 

6.2.5.                              particulars of all transfers
of Notes.

 

6.3.                             Notwithstanding the maintenance of the Register by the
Issuer, failure by the Issuer to accurately maintain the Register shall not
affect the liability of the Issuer to any Noteholder.

 

4

 

6.4.                             Any change of address on the part of any Noteholder
shall forthwith be notified to the Issuer and thereupon the Register shall be
amended accordingly. Failure to provide such notice shall not affect the
liability of the Issuer to any Noteholder. The Noteholders or any of them may
during normal office hours inspect the Register and upon request the Issuer
shall provide a Noteholder with a copy of the Register.

 

6.5.                             No more than one holder shall be registered in respect
of any Note.

 

7.                                     TRANSFER OF NOTES

 

7.1.                             Every Noteholder will be entitled to transfer the
Notes held by it or any part thereof to a Shareholder by a transfer in writing.
Every such transfer must be signed by the transferor(s), the transferee and
(for acknowledgment purposes) the Issuer. Where a Noteholder transfers part
only of the Notes comprised in a Certificate the old Certificate shall be
cancelled and a new Certificate for the balance of such Notes issued without
charge.

 

7.2.                             Every transfer of Notes must be left at the registered
office of the Issuer for the time being for registration accompanied by the
Certificate of the Notes to be transferred and such other evidence (if any) as
the Board may reasonably require to prove the title of the transferor or his
right to transfer the Notes. No transfer of Notes will be registered in respect
of which any notice of repayment or redemption has been given in accordance
with clause 4.1 or in the 30 calendar day period prior to the Maturity
Date.

 

8.                                     RANKING

 

8.1.                             The obligations of the Issuer under the Notes are subordinated
to all existing indebtedness of the Issuer and its direct and indirect
subsidiaries.

 

8.2.                             The obligations of the Issuer under the Notes rank
prior to existing Shares and trade receivables payable by the Issuer to its
direct and indirect subsidiaries.

 

9.                                     NO LISTING

 

The Notes shall not be offered to the public
for subscription or purchase and shall not be capable of being dealt in on any
stock exchange in The Netherlands or elsewhere and no application shall be made
to any stock exchange for permission to deal in or for an official or other
quotation for the Notes.

 

10.                         REPRESENTATIONS AND WARRANTIES

 

The Issuer makes the representations and
warranties set out in this Clause 10 to each Lender on the date of this
Instrument.

 

10.1.                       Binding
obligations

 

The obligations expressed to be assumed by it
in this Instrument are legal, valid, binding and enforceable obligations.

 

10.2.                       Non-conflict
with other obligations

 

The entry into and performance by it of, and
the transactions contemplated by, this Instrument do not and will not conflict
with:

 

5

 

10.2.1.                        any law or regulation
applicable to it;

 

10.2.2.                        its constitutional
documents; or

 

10.2.3.                        any agreement or instrument
binding upon it or any of its assets.

 

10.3.                       Power
and authority

 

It has the power to enter into, perform and
deliver, and has taken all necessary action to authorise its entry into,
performance and delivery of, this Instrument and the transactions contemplated
thereby.

 

10.4.                       Validity
and admissibility in evidence

 

All authorisations required or desirable:

 

10.4.1.                        to enable it lawfully to
enter into, exercise its rights and comply with its obligations in this
Instrument; and

 

10.4.2.                        to make the Instrument
admissible in evidence in its jurisdiction of incorporation,

 

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

 

10.5.                       Governing
law and enforcement

 

10.5.1.                        The choice of Dutch law as
the governing law of this Instrument will be recognised and enforced in its
jurisdiction of incorporation.

 

10.5.2.                        Any judgment obtained in The
Netherlands in relation to this Instrument will be recognised and enforced in
its jurisdiction of incorporation.

 

10.6.                       No
filing or stamp taxes

 

Under the law of The Netherlands it is not
necessary that this Instrument be filed, recorded or enrolled with any court or
other authority in that jurisdiction or that any stamp, registration or similar
tax be paid on or in relation to this Instrument or the transactions
contemplated thereby.

 

10.7.                       No
default

 

10.7.1.                        No Event of Default is
continuing or might reasonably be expected to result from the transactions
contemplated by this Instrument.

 

10.7.2.                        No other event or
circumstance is outstanding which constitutes a default under any other
agreement or instrument which is binding on it or to which its assets are
subject.

 

11.                              GENERAL PROVISIONS

 

11.1.                       Notices

 

All notices, consents, waivers and other
communications under this Instrument must be in writing in English and
delivered by hand or sent by registered mail, express courier, fax or

 

6

 

 

e-mail to the appropriate addresses and fax
numbers set out below, or to such addresses and facsimile numbers as a Party
may notify to the other Parties from time to time. A notice shall be effective
upon receipt and shall be deemed to have been received at the time of delivery,
if delivered by hand, registered mail or express courier or at the time of
successful transmission, if delivered by fax or e-mail.

 

To the Issuer:

 

Name: Tornier B.V.

Primary address: Fred. Roeskestraat 123, 1076
EE Amsterdam, the Netherlands

Phone: +31-20-577-1177

Fax number: +31-20-577-1188

Attention: Guido Nieuwenhuizen

 

Secondary address: 3601 West 76th Street, Suite 200,
Edina, MN 55435

United States of America

Phone: +1-952-426-7676

Fax number: +1-952-995-7446

E-mail: dkohrs@tornierhq.com

Attention: Douglas Kohrs

 

To WP:

 

Name: Warburg Pincus (Bermuda) Private Equity
IX, L.P.

Address: 466 Lexington Avenue, New York, NY,
10017

Fax number: +1-212-716-5040

Phone: +1-212-878-6200

E-mail: scarney@warburgpincus.com

Attention: Sean Carney

 

To Lenders:

 

Name: Vertical Fund I, L.P.

Address: 25 Deforest Avenue, Summit, NJ 07901, United States of America

Phone:
+1-908-277-3737

Email: remmitt@vertical-group.com

Attention: Dick Emmitt

 

Name: Vertical Fund II, L.P.

Address: 25 Deforest Avenue, Summit, NJ 07901,
United States of America

Phone:
+1-908-277-3737

Email: remmitt@vertical-group.com

Attention: Dick Emmitt

 

Name: Split Rock Partners

Address: 10400 Viking Drive, Suite 550,
Minneapolis, MN 55344, United States of America

Phone: +1-952-995-7492

Email: steve@splitrock.com

Attention: Steve Schwen

 

Name: KCH Stockholm AB

Address: Postfach 157 — Bahnhof Park 4, CH-6341 BAAR, Switzerland

Phone: +41-41-76-82-121

 

7

 

Email: afs@databaar.ch

Attention: Hans Jörin, AFS Atlas Finanz Services AG

 

Name: Douglas Kohrs

Address: 7444 Shannon Drive, Edina, MN 55439,
United States of America

Phone: +1-952-941-8515

Email: Dkohrs@tornierhq.com

 

Name: Rod Mayer

Address: 2607 Wildwood Lane, Winona, IN
46590, United States of America

Phone: +1-574-253-1594

E-mail: Rmayer@tornier.com

 

Name:
Diane Doty

Address: 27860 Brynmawr Place, Shorewood, MN
55331, United States of America

Phone: +1-952-401-3660

Email: Mdoty1@msn.com

 

Robert Anderson

Address: 1960 Bechelli Lane, Redding, CA 96002,
United States of America

Phone: +1-530-221-0673

E-mail: rcaredding@aol.com

 

Ralph Barisano

Address: 29 Chicory Road, Westford, MA 01886,
United States of America

Phone: +1-978-392-0954

E-mail: Rbarisanojr@comcast.net;
Rbarisano@tornierhq.com

 

Jamal Rushdy

Address: 17151 Acorn Ridge, Eden Prairie, MN
55347, United States of America

Phone: +1-952-303-4382

E-mail: jrushdy@tornierhq.com

 

James Christopher Harber

Address: 12819 Briarcrest Place, San Diego, CA
92130, United States of America

Phone: +1-954-993-0646

Email: Charber@tornier.com

 

Jean-Marc Idier

Address: Chem Pinardes, 38330 Saint Nazaire
Les Eymes, France

Phone: +33 04 76 52 79 12

E-mail: jean-marc.idier@tornier.fr

 

Jim Kwan

Address: 2 W. Bay Lane, North Oaks, MN 55127,
United States of America

Phone: +1-651-486-2934

Email: Kwanj01@comcast.net; Jkwan@tornierhq.com

 

11.2.                       Expenses

 

The Issuer shall pay all costs and expenses in
connection with the entry into, administration or, and enforcement of this
Instrument and the Notes issued hereunder, including the costs of counsel to
the Noteholders and reasonable out-of-pocket expenses, to the extent the Issuer
would have been obliged to do so, if it had borrowed from a third party.

 

8

 

11.3.                       Entire
agreement

 

This Instrument constitutes the entire
agreement between the Parties relating to the issue of the Notes. This
Instrument supersedes and terminates any earlier agreements, either verbally or
in writing, between the Parties and no Party shall have any right or remedy
against any other Party arising out of or in connection with any such earlier
agreements unless stated otherwise in this Instrument.

 

11.4.                       Amendment

 

This Instrument may only be amended, and the
provisions hereof may only be waived or otherwise modified, in a writing signed
by the Required Noteholders and the Issuer; provided, that no such amendment,
waiver or modification shall reduce the principal of, or interest on, any Note
or postpone or extend any date fixed for any payment of principal of, or
interest, any Note, in each case without the written consent of the Noteholder
of such Note, or amend the definition of “Required Noteholders” without the
written consent of all Noteholders.

 

11.5.                       Partial
invalidity

 

The invalidity or unenforceability of any
provision of this Instrument shall not affect the validity or enforceability of
any other provision of this Instrument. Any such invalid or unenforceable
provision shall be replaced or be deemed to be replaced by a provision that is
considered to be valid and enforceable. The interpretation of the replacing
provisions shall be as close as possible to the intent of the invalid or
unenforceable provision.

 

11.6.                       Copies

 

The
Issuer shall keep copies of this Instrument and any notices given or received
hereunder available for inspection by the Noteholders during normal business
hours at its principal office.

 

11.7.                       Governing
law

 

This Instrument is governed by the laws of the
Netherlands.

 

11.8.                       Jurisdiction

 

The competent court in Amsterdam, the
Netherlands shall have exclusive jurisdiction to settle any dispute in
connection with this Instrument without prejudice to the right of appeal and
that of appeal to the Supreme Court.

 

9

 

EXECUTED ON 29 February 2008,

 

	
  Tornier
  B.V.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/  G.F.X.M.
  Nieuwenhuizen

  	
   

  	
  /s/  Eric Liu

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  G.F.X.M. Nieuwenhuizen

  	
   

  	
  By:

  	
  Eric Liu

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Managing Director A

  	
   

  	
  Title:

  	
  Managing Director A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Warburg
  Pincus (Bermuda) Private Equity IX, L.P.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Warburg Pincus (Bermuda) Private Equity Ltd.,
  its General Partner

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Sean D. Carney

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Authorised Signatory

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Vertical
  Fund I, L.P.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  The Vertical Group, L.P.,

  	
   

  	
   

  	
   

  
	
   

  	
  General Partner

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  John
  E. Runnells

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  John E. Runnells

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  General Partner

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Vertical
  Fund II, L.P.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  The Vertical Group, L.P.,

  	
   

  	
   

  	
   

  
	
   

  	
  General Partner

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  John
  E. Runnells

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  John E. Runnells

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  General Partner

  	
   

  	
   

  	
   

  

 

10

 

	
  /s/  Douglas
  Kohrs

  	
   

  	
   

  	
   

  
	
  Mr. Douglas
  Kohrs

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Split
  Rock Partners

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Split Rock Partners Management, LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/  Steven
  L. P. Schwen

  	
   

  	
   

  	
   

  
	
  By:

  	
  Steven L. P. Schwen

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KCH
  Stockholm AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/  Knut
  Solvana

  	
   

  	
  /s/  Carl-Henry Salomonsson

  
	
  By:

  	
  Knut Solvana

  	
   

  	
  By:

  	
  Carl-Henry Salomonsson

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/  Rod
  Mayer

  	
   

  	
   

  	
   

  
	
  Mr. Rod
  Mayer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  Diane
  Doty

  	
   

  	
   

  	
   

  
	
  Ms. Diane
  Doty

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  Robert
  Anderson

  	
   

  	
   

  	
   

  
	
  Mr. Robert
  Anderson

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  Ralph
  Barisano

  	
   

  	
   

  	
   

  
	
  Mr. Ralph
  Barisano

  	
   

  	
   

  	
   

  

 

11

 

	
  /s/  Jamal
  Rushdy

  	
   

  	
   

  	
   

  
	
  Mr. Jamal
  Rushdy

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  James
  Christopher Harber

  	
   

  	
   

  	
   

  
	
  Mr. James
  Christopher Harber

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  Jean-Marc
  Idier

  	
   

  	
   

  	
   

  
	
  Mr. Jean-Marc
  Idier

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  Jim
  Kwan

  	
   

  	
   

  	
   

  
	
  Mr. Jim
  Kwan

  	
   

  	
   

  	
   

  

 

12

 

SCHEDULE
1 — FORM OF CERTIFICATE

 

Tornier B.V. (the “Issuer”)

 

Notes 2008

 

Certificate No.
                                                                                  
Amount of Notes: EUR

 

Issue of EUR
                                                                                                              
Notes (in units of EUR [·] each) created by a resolution of the board of
directors of the Company adopted on [·] 2008.

 

THIS IS TO CERTIFY THAT ........................... is the
registered holder of EUR
                         
of the above Notes (represented by units of EUR [·] each) fully paid. The holders of the above Notes are
and will be entitled pari passu and rateably to the benefit of and are and will
be subject to the provisions contained in an instrument entered into by the
Issues and dated 29 February 2008 (the “Instrument”).

 

Words and expressions defined in the Instrument
shall bear the same meaning in this Certificate.

 

Interest is payable on the Notes in accordance
with the terms and conditions of the Instrument.

 

[For managers:]

 

[The holder of these Notes shall offer the
Notes to the Issuer for repayment and the Issuer shall repay those Notes, if
its employment or management relation with the Issuer or the Issuer’s group
terminates.]

 

[The holder of these Notes will not transfer
these Notes to anyone other than a person that has an employment or management
relation with the Issuer or the Issuer’s group.]

 

[For other Lenders:]

 

[The holder of these Notes will not transfer
these Notes, unless the number of Notes to be transferred constitute a minimum
aggregate amount of EUR 50,000.]

 

	
  DATED

  	
   

  	
  2008

  

 

Tornier B.V.

 

13

 

SCHEDULE
2 — REGISTER

 

	
  Nr.

  	
   

  	
  Lenders

  	
   

  	
  Loan Amount

  	
   

  	
  Register Date

  	
   

  	
  Issue Date

  	
   

  
	
  1

  	
   

  	
  Warburg Pincus (Bermuda) Private Equity IX,
  L.P.

  	
   

  	
  €

  	
  24,700,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  2

  	
   

  	
  Vertical Fund I, L.P.

  	
   

  	
  €

  	
  3,153,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  3

  	
   

  	
  Vertical Fund II, L.P.

  	
   

  	
  €

  	
  929,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  4

  	
   

  	
  Douglas Kohrs

  	
   

  	
  €

  	
  562,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  5

  	
   

  	
  Split Rock Partners, LP

  	
   

  	
  €

  	
  1,159,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  6

  	
   

  	
  KCH Stockholm AB

  	
   

  	
  €

  	
  3,500,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  7

  	
   

  	
  Rod Mayer

  	
   

  	
  €

  	
  166,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  8

  	
   

  	
  Diane Doty

  	
   

  	
  €

  	
  166,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  9

  	
   

  	
  Robert Anderson

  	
   

  	
  €

  	
  77,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  10

  	
   

  	
  Ralph Barisano

  	
   

  	
  €

  	
  26,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  11

  	
   

  	
  Jamal Rushdy

  	
   

  	
  €

  	
  26,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  12

  	
   

  	
  James Christopher Harber

  	
   

  	
  €

  	
  19,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  13

  	
   

  	
  Jean-Marc Idier

  	
   

  	
  €

  	
  10,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
  14

  	
   

  	
  Jim Kwan

  	
   

  	
  €

  	
  7,000

  	
   

  	
  29 Feb 2008

  	
   

  	
  29 Feb 2008

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  €

  	
  34,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]