Document:

SALE AGREEMENT

 Exhibit 10.1 
  
 CONFORMED COPY 
  
 DATE 20th December, 2001 
  
 UNILEVER U.K. HOLDINGS LIMITED 
  
 AND 
  
 INVERNESS MEDICAL INNOVATIONS, INC. 
  

  
 SALE AGREEMENT 
  

  
 Slaughter and May 
 35 Basinghall Street 
 London EC2V 5DB 
 CFIS/RJYT/ADJ 
  

 CONTENTS 
  

					
	 	  	 	  	Page

			
	1.	  	 INTERPRETATION
	  	1
			
	2.	  	 SALE AND PURCHASE
	  	1
			
	3.	  	 CASH CONSIDERATION
	  	5
			
	4.	  	 FIXED INTRA-GROUP DEBT AMOUNTS
	  	6
			
	5.	  	 WORKING CAPITAL AND VARIABLE INTRA–GROUP DEBT ADJUSTMENTS
	  	6
			
	6.	  	 COMPLETION ACCOUNTS AND VARIABLE INTRA-GROUP DEBT STATEMENT
	  	9
			
	7.	  	 COMPLETION
	  	12
			
	8.	  	 THIRD PARTY CONSENTS FOR THE TRANSFER OF THE US BUSINESS ASSETS
	  	13
			
	9.	  	 TRANSFER OF US CONTRACTS AND IP LICENCES
	  	13
			
	10.	  	 ASSUMED LIABILITIES AND RETAINED LIABILITIES
	  	16
			
	11.	  	 INTRA-GROUP TRADING AND SERVICES
	  	21
			
	12.	  	 INTRA-GROUP GUARANTEES AND OTHER AGREEMENTS
	  	23
			
	13.	  	 EMPLOYEES
	  	24
			
	14.	  	 PENSIONS
	  	33
			
	15.	  	 RISK AND INSURANCE
	  	33
			
	16.	  	 DUTCH SALES STAFF
	  	39
			
	17.	  	 INTELLECTUAL PROPERTY
	  	41
			
	18.	  	 REORGANISATION INDEMNITY
	  	42
			
	19.	  	 VENDOR’S WARRANTIES AND UNDERTAKINGS AND PURCHASER’S REMEDIES
	  	44
			
	20.	  	 PURCHASER’S WARRANTIES
	  	51
			
	21.	  	 PURCHASER’S UNDERTAKINGS
	  	53

  

					
			
	22.	  	 RESTRICTIONS ON THE VENDOR
	  	55
			
	23.	  	 PROFIT AND LOSS EQUALISATION
	  	58
			
	24.	  	 BOOKS AND RECORDS
	  	59
			
	25.	  	 NO SET OFF
	  	60
			
	26.	  	 EFFECT OF COMPLETION
	  	60
			
	27.	  	 REMEDIES AND WAIVERS
	  	61
			
	28.	  	 NO ASSIGNMENT
	  	61
			
	29.	  	 FURTHER ASSURANCE
	  	62
			
	30.	  	 ENTIRE AGREEMENT
	  	63
			
	31.	  	 NOTICES
	  	64
			
	32.	  	 ANNOUNCEMENTS
	  	65
			
	33.	  	 CONFIDENTIALITY
	  	66
			
	34.	  	 COSTS AND EXPENSES
	  	68
			
	35.	  	 COUNTERPARTS
	  	68
			
	36.	  	 INVALIDITY
	  	69
			
	37.	  	 CAPACITY OF THE PARTIES AND GROUP COMPANY OBLIGATIONS
	  	69
			
	38.	  	 CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
	  	70
			
	39.	  	 GOVERNING LAW
	  	70
			
	40.	  	 JURISDICTION
	  	70
			
	41.	  	 AGENT FOR SERVICE OF PROCESS
	  	70
			
	42.	  	 LANGUAGE
	  	71

  

			
		
	 SCHEDULE 1 (Interpretation)
	  	72
		
	 SCHEDULE 2 (Information about the Vendor)
	  	94
		
	 SCHEDULE 3 (Information about the Companies)
	  	95
		
	 SCHEDULE 4 (Ownership of the Shares)
	  	97
		
	 SCHEDULE 5 (Completion Arrangements)
	  	98
		
	 SCHEDULE 6 (Warranties)
	  	103
		
	 SCHEDULE 7 (Limitations on Liability)
	  	129
		
	 SCHEDULE 8 (Pensions)
	  	143
		
	 SCHEDULE 9 (Properties)
	  	179
		
	 SCHEDULE 10 (Completion Accounts and Variable Intra-Group Debt Statement)
	  	187
		
	 SCHEDULE 11 (Employees)
	  	188
		
	 SCHEDULE 12 (Allocation of Cash Consideration)
	  	189
		
	 SCHEDULE 13 (Fixed Intra-Group Debt Amounts)
	  	190
		
	 SCHEDULE 14 (Domain Names)
	  	191
		
	 SCHEDULE 15 (Patent Cases)
	  	192
		
	 SCHEDULE 16 (Intellectual Property Licences)
	  	193

  

 LIST OF ATTACHMENTS 
  

	1.	Business Purchase Agreement dated 20th July, 2001 between Unipath Management Limited and Unipath Limited (then named, respectively, Unipath Limited and MW Grieg Limited).

  

	2.	Reorganisation Step Plan. 

  

	3.	Accounts of each of the Companies. 

  

	4.	Indirect Taxation. 

  

	5.	Management Accounts and October Management Accounts of the Transferring Business. 

  

	6.	Press Announcements (Vendor (x2) and Purchaser). 

  

	7.	List of Monoclonal Assets. 

  

	8.	Accounting Manual Extracts. 

  

	9.	Property Documents referred to in sub-clause 19(K). 

  

	10.	Agreement for the transfer of the Share in Unipath Diagnostics GmbH. 

  

	11.	Calculation of the aggregate working capital of the Companies and the US Business as at 30th June, 2001. 

  

	12.	Severance Provisions Applicable to US Employees. 

  

	13.	US Balance Sheet. 

  

	14.	Employee non-contractual benefits. 

  

	15.	Certain IP Licences. 

  

	16.	Directors and Company Secretaries to resign at Completion. 

  

 LIST OF AGREED FORM DOCUMENTS 
  
 Bedford Property Transfer. 
  
 Deed of Undertaking. 
  
 Antibody Patent Licence. 
  
 Intellectual Property
Assignments. 
  
 Tax Covenant. 
  
 Transitional Services Agreement. 
  
 US Transfer Agreement. 
  
 US Lease Assignments. 
  
 Power of Attorney (as referred to in sub-paragraphs 1(A)(xii) and 1(B)(ix) of Schedule 5 (Completion Arrangements)). 
  

 SALE AGREEMENT 
  
 DATED 20th December, 2001 
  
 BETWEEN 
  

	1.	UNILEVER U.K. HOLDINGS LIMITED (registered in England and Wales no. 17049) whose registered office is at Unilever House, Blackfriars, London EC4P 4BQ (the
“Vendor”); 

  
 AND 
  

	2.	INVERNESS MEDICAL INNOVATIONS, INC. (incorporated under the laws of the State of Delaware, United States of America) whose principal office is at Suite 200, 51 Sawyer Road,
Waltham, Massachusetts 02453, United States of America (the “Purchaser”). 

  
 WHEREAS: 
  

	(A)	The Vendor’s Group and the Companies carry on the Transferring Business (as defined in this Agreement). The Vendor is the beneficial owner of, or is able to procure the sale
of, the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets (each as defined in this Agreement) on the terms of this Agreement. 

  

	(B)	The Purchaser has agreed to purchase, or procure the purchase of, the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets for the
consideration, including the assumption of liabilities, provided for in this Agreement and on the terms of this Agreement. 

  
 IT IS AGREED as follows: 
  

	1.	INTERPRETATION 

  

	(A)	Certain words and expressions used in, and principles of interpretation applicable to, this Agreement are defined or, as the case may be, set out in Schedule 1
(Interpretation). 

  

	(B)	The Schedules form part of this Agreement and shall have the same force and effect as if set out in the body of this Agreement and any reference to this Agreement shall include the
Schedules. 

  

	2.	SALE AND PURCHASE 

  
 Share Sale 
  

	(A)	 On the terms set out in this Agreement, the Vendor shall sell, or procure the sale of, and the Purchaser shall purchase, or procure the purchase by the relevant
Designated Purchaser of, the full legal and beneficial interest in the Shares as at and with effect from Completion. The Shares shall be sold free from all liens, charges, equities, 

  

	 	 
encumbrances and other rights exercisable by third parties and together with all rights attached or accruing to them at Completion.

  

	(B)	Each relevant Designated Purchaser shall be entitled, with effect from Completion, to exercise all rights attaching to or accruing to the Shares to be acquired by it including,
without limitation, the right to receive all dividends, distributions or other returns of capital declared, paid or made by each relevant Company in respect of periods commencing on or after Completion. 

  

	(C)	The Vendor (for itself and on behalf of each other member of the Vendor’s Group) waives, and will procure the waiver prior to Completion of, all rights of pre-emption over any
of the Shares conferred upon it or any other member of the Vendor’s Group in any way. 

  
 Bedford Property Sale 
  

	(D)	On the terms set out in this Agreement (in particular, but without limitation, Part C of Schedule 9 (Properties)), the Vendor shall sell and the Purchaser shall purchase, or
procure the purchase by the relevant Designated Purchaser of, the Bedford Property. 

  
 US Business Sale 
  

	(E)	On the terms set out in this Agreement, the Vendor shall sell, or procure the sale of, and the Purchaser shall purchase, or procure the purchase by the relevant Designated Purchaser
of, the full legal and beneficial interest (subject as qualified in paragraph (vi)) in the US Business Assets listed below as at and with effect from Completion in each case free,with the exception of Permitted Encumbrances, from all
liens, charges, equities, encumbrances and other rights exercisable by third parties: 

  

	 	(i)	the US Goodwill; 

  

	 	(ii)	the US Properties; 

  

	 	(iii)	the US Plant and Machinery; 

  

	 	(iv)	the US Business Stocks; 

  

	 	(v)	the benefit of the US Contracts and US Claims; 

  

	 	(vi)	all right, title and interest of any member of the Vendor’s Group in: 

  

	 	(a)	the US Business Information; and 

  

	 	(b)	all US Business Records to the extent, but only to the extent, that they contain or relate to US Business Information or on which US Business Information is recorded;

  

 2 

	 	(vii) 	all rights of the Vendor or any other member of the Vendor’s Group to receive payment of Intra-Group Trading and Services Amounts in respect of the US Business;

  

	 	(viii) 	the US Receivables and amounts recoverable in respect of Indirect Taxation in respect of the US Business to the extent that such amounts are taken into account in the calculation of
the Working Capital Amount; and 

  

	 	(ix) 	all other property, assets and rights of the Vendor or any other member of the Vendor’s Group predominantly used in or for the purposes of the US Business at Completion;

  
 but excluding the following: 
  

	 	(x)	cash or cash equivalents, in hand or at the bank used in the US Business; 

  

	 	(xi)	save as set out in Clause 15 (Risk and Insurance), the benefit of any insurance policy relating to any of the US Business Assets; 

  

	 	(xii)	any rights of any member of the Vendor’s Group arising under this Agreement, any Specified Agreement or any other document required to be delivered or entered into at
Completion under the terms of Schedule 5 (Completion Arrangements); 

  

	 	(xiii)	any rights in relation to Intellectual Property used in the US Business; 

  

	 	(xiv)	without prejudice to the provisions of the Transitional Services Agreement, any rights of the US Business Seller or any other member of the Vendor’s Group to be provided with
goods, services or facilities in relation to the US Business by other members of the Vendor’s Group together with any assets employed by such other members of the Vendor’s Group in connection with the provision of such goods, services or
facilities in relation to the US Business; 

  

	 	(xv)	except in the case of amounts recoverable in respect of Indirect Taxation in respect of the US Business to the extent that such amounts are taken into account in the calculation of
the Working Capital Amount and with the exception of rights to receive payment of Intra-Group Trading and Services Amounts (which rights shall be sold pursuant to paragraph (vii)), any rights of the US Business Seller or any other member of
the Vendor’s Group to receive any indebtedness incurred in relation to the US Business and owing to it by other members of the Vendor’s Group; 

  

	 	(xvi)	all documents and other information prepared or obtained by members of the Vendor’s Group in connection with the sale of the US Business Assets or any other assets to be sold
pursuant to this Agreement (including, without limitation, details of offers received from parties other than the Purchaser); 

  

 3 

	 	(xvii) 	amounts recoverable in respect of Taxation (other than any amounts recoverable in respect of Indirect Taxation in respect of the US Business to the extent that such amounts are
taken into account in the calculation of the Working Capital Amount) relating to the US Business arising in respect of: 

  

	 	(a)	any period of account for Taxation purposes ending on or before Completion; or 

  

	 	(b)	in the case of a Straddle Period, the portion of that period ending on Completion; or 

  

	 	(c)	any acts, events or occurrences occurring on or before Completion, provided that the Taxation is properly attributable to a period specified in (a) or (b) above; and

  

	 	(xviii) 	any rights, claims and causes of action of any member of the Vendor’s Group relating to any of the assets described in paragraphs (x) to (xvii) above or, to the
extent relevant to the US Business, to any Retained Liabilities. 

  
 IP Assets 
  

	(F)	On the terms set out in this Agreement, the Vendor shall sell, or procure the sale of, and the Purchaser shall purchase, or procure the purchase by the relevant Designated Purchaser
of, the full legal and beneficial interest in the IP Assets as at and with effect from Completion free from all liens, charges, equities, encumbrances and other rights exercisable by third parties (other than (i) in the case of US IP Assets only,
encumbrances of the type within paragraph (i) of the definition of Permitted Encumbrances set out in Schedule 1 (Interpretation), and (ii) in the case of all IP Assets, the BD Licence and the rights of counterparties under the IP
Licences disclosed in the Disclosure Letter), provided that nothing in this Clause 2(F) shall be or shall be deemed to be a covenant, warranty, representation or undertaking as to validity or non-infringement of any of the IP Assets.

  

	(G)	Sub-clause 2(F) shall operate as an assignment of such of the Business IPR as is not the subject of a registration or an application for registration with effect from
Completion. Any Business IPR which is registered or which is the subject of an application for registration shall be assigned to the Purchaser or relevant Designated Purchaser pursuant to the Intellectual Property Assignments and any subsequent
assignments to be entered into following Completion pursuant to Clause 29(B). 

  
 Monoclonal Assets 
  

	(H)	On the terms set out in this Agreement, the Vendor shall sell, or procure the sale of, and the Purchaser shall purchase, or procure the purchase by the relevant Designated Purchaser
of, the full legal and beneficial interest in the Monoclonal Assets as at and with effect from Completion in each case free from all liens, charges, equities, encumbrances and other rights exercisable by third parties. 

  

 4 

 Generally 
  

	(I)	In consideration for the sale to it (or the relevant Designated Purchaser) of the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets, the
Purchaser shall or shall procure that the relevant Designated Purchaser shall: 

  

	 	(i)	pay to the Vendor (on behalf of itself, the Share Sellers, the US Business Seller, the IP Assets Sellers and the Monoclonal Assets Seller) the Cash Consideration in accordance with
the provisions of this Agreement; and 

  

	 	(ii)	discharge and indemnify each member of the Vendor’s Group in respect of the Assumed Liabilities in accordance with Clause 10 (Assumed Liabilities and Retained
Liabilities). 

  

	(J)	Any Transferring Business Plant and Machinery at a Property which is leasehold is sold subject to the rights of the relevant landlord arising under the law relating to tenant’s
fixtures and under the relevant lease. 

  

	(K)	For the avoidance of doubt, Part I of the Law of Property (Miscellaneous Provisions) Act 1994 shall not apply for the purpose of this Clause 2. 

  

	3.	CASH CONSIDERATION 

  

	(A)	The Cash Consideration payable at Completion for the sale of the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets shall be
£49,310,000, which amount shall be payable at Completion as to £37,565,613.13 in pounds sterling (the “Sterling Amount”) and US$17,000,000 in US dollars (the “Dollar Amount”).

  

	(B)	The Cash Consideration and the assumption by the Purchaser and the relevant Designated Purchasers of the Assumed Liabilities pursuant to Clause 10 (Assumed Liabilities and
Retained Liabilities) shall each be exclusive of any amount in respect of VAT. If the Cash Consideration or the assumption of the Assumed Liabilities is or is deemed to be the consideration for a taxable supply for VAT purposes, the Purchaser shall,
in addition to the Cash Consideration and assumption of the Assumed Liabilities, pay (on receipt of a VAT invoice and on behalf of itself and each relevant Designated Purchaser) an amount equal to any VAT which may from time to time be chargeable in
respect of such supply. 

  

	(C)	 The Cash Consideration shall be allocated between the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets and between the
categories of Shares, US Business Assets and Monoclonal Assets and between the IP Assets Sellers on the basis set out in Schedule 12 (Allocation of Cash Consideration) and such allocation shall be adopted by the Vendor and the Purchaser, each
relevant member of the Vendor’s Group and each Designated Purchaser for all purposes (including Tax). For US federal income Tax purposes such allocation shall be in accordance with section 1060 of the Code, and no party shall take any position,
in a Tax 

  

 5 

	 	 
return or otherwise, inconsistent with such allocation. For the avoidance of doubt, it is understood and agreed that the inclusion of valuations of the
Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets in Schedule 12 (Allocation of Cash Consideration) is not intended to be, and shall not be interpreted as, any Assurance by any party as to the
assets being transferred or as to the value thereof. The Assumed Liabilities which are attributable to the US Business shall be allocated to the US Business Assets. 

  

	(D)	The Cash Consideration may be adjusted in accordance with the terms of this Agreement and/or under the Tax Covenant. 

  

	4.	FIXED INTRA-GROUP DEBT AMOUNTS 

  

	(A)	The Purchaser undertakes that it will, on Completion, procure that each relevant Company pays to the relevant member or members of the Vendor’s Group (as specified in
Schedule 13 (Fixed Intra-Group Debt Amounts)) the Fixed Intra-Group Debt Amount(s) owing by that Company to such member or members of the Vendor’s Group. Each payment required by this sub-clause (A) shall be made:

  

	 	(i)	in the currency specified in Schedule 13 (Fixed Intra-Group Debt Amounts) in respect of the relevant Fixed Intra-Group Debt Amount; and 

  

	 	(ii)	by telegraphic transfer to the bank account specified by the relevant member of the Vendor’s Group. 

  

	(B)	The Vendor (on behalf of itself and each relevant member of the Vendor’s Group) undertakes to the Purchaser (on behalf of each of the Companies) that payment of the Fixed
Intra-Group Debt Amounts pursuant to sub-clause 4(A) shall satisfy and extinguish the liability of the Companies in respect of the Fixed Intra-Group Debt Amounts. The Vendor shall procure that each relevant member of the Vendor’s Group
delivers to the Purchaser a duly executed receipt in respect of such payment at Completion. 

  

	5.	WORKING CAPITAL AND VARIABLE INTRA-GROUP DEBT ADJUSTMENTS 

  

	(A)	Subject to sub-clauses (B)and (C), the Cash Consideration referred to in sub-clause 3(A) shall be: 

  

	 	(i)	increased by £1 for every £1 by which the Working Capital Amount exceeds the Working Capital Benchmark or, as the case may be, reduced by £1 for every £1 by
which the Working Capital Amount is less than the Working Capital Benchmark; and 

  

	 	(ii)	reduced by a sum equal to the Variable Intra-Group Debt if the Variable Intra-Group Debt reflects a net liability of the Companies or, as the case may be, increased by a sum equal
to the Variable Intra-Group Debt if the Variable Intra-Group Debt reflects a net asset of the Companies. 

  

 6 

 The Cash Consideration referred to in sub-clause 3(A) as so adjusted shall constitute the
“Adjusted Cash Consideration”. Any adjustments to the Cash Consideration required by this sub-clause (A) shall be allocated to the greatest extent possible to the particular Shares to which the adjustments relate.

  

	(B)	Sub-clause (A)(i) shall not operate to increase the Cash Consideration unless the Working Capital Amount exceeds the Working Capital Benchmark by an amount in excess of
£250,000 and shall not operate to reduce the Cash Consideration unless the Working Capital Amount is less than the Working Capital Benchmark by an amount in excess of £250,000. For the avoidance of doubt, in either such case the Cash
Consideration shall be increased or reduced (as appropriate) by the full amount of the difference between the Working Capital Amount and the Working Capital Benchmark and not merely by the excess of such difference over £250,000.

  

	(C)	The Vendor shall procure that any net liability of the Companies in respect of Variable Intra-Group Debt does not exceed the amount of the Cash Consideration attributable to the
Shares (following any adjustment required pursuant to sub-clause (A)(i) but before any adjustment is made pursuant to sub-clause (A)(ii)) and the Vendor shall procure that the indebtedness represented by any such excess shall be
capitalised by the issue of fully paid shares in the relevant Company as soon as reasonably practicable and forthwith thereafter the relevant member or members of the Vendor’s Group shall sell, and the Purchaser shall purchase, or procure the
purchase by the relevant Designated Purchaser of, the full legal and beneficial interest in the shares in the relevant Company arising from such capitalisation for a consideration of £1. Such shares shall be sold free from all liens, charges,
equities, encumbrances and other rights exercisable by third parties and together with all rights attaching or accruing to them as at the date of such transfer. 

  

	(D)	As soon as reasonably practicable after and, in any event, within 10 Business Days of the Completion Accounts, the Variable Intra-Group Debt Statement and the Working Capital
Benchmark being agreed by the Vendor and the Purchaser or (as the case may be) finalised pursuant to Clause 6 (Completion Accounts and Variable Intra-Group Debt Statement): 

  

	 	(i)	if the Adjusted Cash Consideration: 

  

	 	(a)	is less than the Cash Consideration referred to in sub-clause 3(A), an amount equal to the shortfall shall be repaid to the Purchaser (on behalf of the relevant Designated
Purchaser) by the Vendor (on behalf of the relevant members of the Vendor’s Group) by telegraphic transfer to an account notified to the Vendor by the Purchaser; or 

  

	 	(b)	is greater than the Cash Consideration referred to in sub-clause 3(A), an amount equal to the excess shall be paid to the Vendor (on behalf of the relevant members of the
Vendor’s Group) by the Purchaser (on behalf of the relevant Designated Purchaser) by telegraphic transfer to an account notified to the Purchaser by the Vendor; and 

  

 7 

	 	(ii)	if the Variable Intra-Group Debt: 

  

	 	(a)	reflects a net asset of the Companies, the Vendor shall procure that an amount equal to the Variable Intra-Group Debt shall be paid to the Purchaser by telegraphic transfer to an
account notified to the Vendor by the Purchaser; or 

  

	 	(b)	reflects a net liability of the Companies, the Purchaser shall procure that an amount equal to the Variable Intra-Group Debt shall be paid to the Vendor by telegraphic transfer to
an account notified to the Purchaser by the Vendor. 

  
 Any amount which a party is required to procure payment of under sub-clause (D)(ii) shall be set off against any amount owed to such party under sub-clause (D)(i) so that only a single payment is made by one party to the other
party in respect of all amounts due under sub-clauses (D)(i) and (D)(ii). As from the Completion Date, no payments (whether of interest or principal) shall be made by any member of the Vendor’s Group or the Purchaser’s Group
in respect of Variable Intra-Group Debt other than in accordance with this sub-clause (D) and sub-clause (E). 
  

	(E)	Any amount paid pursuant to sub-clause (D) shall be paid together with a supplementary amount computed as if it were interest calculated at (i) the Agreed Rate in respect of
the period from the Completion Date to the earlier of (a) the date of actual payment and (b) the date (the “Settlement Date”) falling 10 Business Days after the day upon which the Completion Accounts, the Variable Intra-Group
Debt Statement and the Working Capital Benchmark are agreed by the Vendor and the Purchaser or, as the case may be, determined by the Independent Accountants pursuant to Clause 6 (Completion Accounts and Variable Intra-Group Debt Statement)
and (ii) (if the date of actual payment falls after the Settlement Date) at the Default Rate in respect of the period from the Settlement Date to the date of actual payment. Any supplementary amount payable pursuant to this
sub-clause (E) shall be treated as a further adjustment to the Cash Consideration. 

  

	(F)	The Vendor (on behalf of each relevant member of the Vendor’s Group) and the Purchaser (on behalf of each relevant Company) undertake to each other that payment of the amounts
due under sub-clause (D)(ii) (including by way of set off) shall satisfy and extinguish all those liabilities of the Companies and of the Vendor’s Group in respect of the Variable Intra-Group Debt. The party receiving payment of such
amounts shall receive them on behalf of the relevant Companies (in the case of receipt by the Purchaser) or, as the case may be, on behalf of the relevant member(s) of the Vendor’s Group (in the case of receipt by the Vendor). The effect of
sub-clause (D)(ii) and this sub-clause (F) shall be that as from the date of payment under sub-clause (D)(ii): 

  

	 	(i)	 each member of the Vendor’s Group which owed to a Company an amount included within Variable Intra-Group Debt shall owe that amount instead to the Vendor
(which will have paid that amount on behalf of that member of the Vendor’s Group to the Purchaser on behalf of that Company) and, 

  

 8 

	 	 
correspondingly, the Purchaser shall owe that amount to the Company on whose behalf the Purchaser received it; and 

  

	 	(ii)	each Company which owed to a member of the Vendor’s Group an amount included within Variable Intra-Group Debt shall owe that amount instead to the Purchaser (which will have
paid that amount on behalf of that Company to the Vendor on behalf of that member of the Vendor’s Group) and, correspondingly, the Vendor shall owe that amount to the member of the Vendor’s Group on whose behalf the Vendor received it.

  

	6.	COMPLETION ACCOUNTS AND VARIABLE INTRA-GROUP DEBT STATEMENT 

  

	(A)	The Purchaser shall procure the preparation of the Completion Accounts and the Variable Intra-Group Debt Statement in compliance with the provisions of Schedule 10
(Completion Accounts and Variable Intra-Group Debt Statement). The Purchaser shall, subject to compliance by the Vendor with its obligations under sub-clause (F), procure that: 

  

	 	(i)	the Completion Accounts and the Variable Intra-Group Debt Statement; and 

  

	 	(ii)	a statement of any adjustments which the Purchaser considers should be made to the Working Capital Benchmark (the “Benchmark Statement”)

  
 are delivered to the Vendor within 40 Business
Days of Completion. The only grounds upon which the Purchaser shall be entitled to propose adjustments to the Working Capital Benchmark are mathematical errors in the computation of the Working Capital Benchmark (apparent from Part B of
Schedule 10 (Completion Accounts and Variable Intra-Group Debt Statement) or from Attachment 11) or inconsistency between the basis of preparation of the Working Capital Benchmark and the basis of preparation of the Completion Accounts
as provided for in Part A of Schedule 10 (Completion Accounts and Variable Intra-Group Debt Statement), for this purpose substituting 30th June 2001 for the Completion Date as the date at which the Working Capital Benchmark is
prepared. Any Benchmark Statement shall contain an explanation (supported, so far as reasonably practicable, by reasonable evidence) of the adjustments which the Purchaser considers should be made to the Working Capital Benchmark. 
  

	(B)	The Vendor shall be entitled at any time within the period expiring 30 Business Days after receipt of the Completion Accounts, the Variable Intra-Group Debt Statement and the
Benchmark Statement (if any) to dispute the Completion Accounts and/or the Variable Intra-Group Debt Statement and/or the proposed adjustments to the Working Capital Benchmark set out in the Benchmark Statement by notice in writing (a
“Dispute Notice”) to the Purchaser setting out, in reasonable detail, the grounds for dispute. The only grounds upon which the Vendor shall be entitled to dispute the Completion Accounts and/or the Variable Intra-Group Debt
Statement are mathematical errors in the computation of the Working Capital Amount or Variable Intra-Group Debt or a failure by the Purchaser to prepare the Completion Accounts and/or the Variable Intra-Group Debt Statement in compliance with
Schedule 10 (Completion Accounts and Variable Intra-Group Debt Statement). The only grounds on which the Vendor shall be entitled to 

  

 9 

 dispute the proposed adjustments to the Working Capital Benchmark set out in the Benchmark Statement are
that such proposed adjustments do not comply with the provisions of sub-clause (A). Any Dispute Notice shall be accompanied by a statement (supported, so far as reasonably practicable, by reasonable evidence) of the adjustments which the
Vendor considers should be made to (a) the Completion Accounts and/or the Variable Intra-Group Debt Statement, and/or (b) the adjustments to the Working Capital Benchmark set out in the Benchmark. If no Dispute Notice is given by the Vendor before
the expiry of the 30 Business Day period referred to above: 
  

	 	(i)	the Completion Accounts and the Variable Intra-Group Debt Statement shall be deemed to have been agreed by the Vendor and the Purchaser; and 

  

	 	(ii)	the Working Capital Benchmark shall be deemed to have been agreed between the Vendor and the Purchaser (on the basis that the proposed adjustments set out in the Benchmark Statement
are made) 

  
 and, in each case, shall be final and
binding on the Vendor and the Purchaser. The Vendor shall, if it has not served a Dispute Notice, be entitled to notify the Purchaser prior to the expiry of such 30 Business Day period that the Completion Accounts, the Variable Intra-Group Debt
Statement and, if applicable, the Working Capital Benchmark are agreed (in the case of the Working Capital Benchmark, on the basis that the proposed adjustments set out in the Benchmark Statement are made) and that the Vendor does not intend to
serve a Dispute Notice and following any such notification the Completion Accounts, the Variable Intra-Group Debt Statement and, if applicable, the Working Capital Benchmark shall be deemed to be agreed by the Vendor and the Purchaser and shall be
final and binding on the Vendor and the Purchaser. 
  

	(C)	The Vendor and the Purchaser shall use all reasonable endeavours to resolve any dispute(s) and agree the Completion Accounts, the Variable Intra-Group Debt Statement and the Working
Capital Benchmark within 30 Business Days of the date of receipt of a Dispute Notice by the Purchaser. If the Vendor and the Purchaser fail to agree the Completion Accounts, the Variable Intra-Group Debt Statement and the Working Capital Benchmark
by the expiry of the 30 Business Day period referred to above, any matter in dispute may be referred by the Vendor or the Purchaser to the Independent Accountants (acting as experts and not as arbitrators). For these purposes, the
“Independent Accountants” shall be an independent firm of chartered accountants of international repute appointed by the Vendor and the Purchaser or, in default of agreement as to such appointment within five Business Days of
one of them notifying the other of its wish to appoint Independent Accountants, by the President for the time being of the Institute of Chartered Accountants in England and Wales (or in his absence, any appropriate deputy) on the application of
either of them. 

  

	(D)    (i)	 The Independent Accountants shall determine the matters in dispute and, providing it is made in accordance with sub-clause (D)(ii), their decision shall
be final and binding on the Vendor and the Purchaser in the absence of manifest error (whereupon the relevant matter shall be referred back to the Independent Accountants to be redetermined). The Vendor and the Purchaser shall be 

  

 10 

	 	 
bound by the terms of reference and timetable agreed with or, in default of such agreement, imposed by the Independent Accountants.

  

	 	(ii)	The only adjustments which the Independent Accountants may determine should be made to the Completion Accounts and/or the Variable Intra-Group Debt Statement and/or the Working
Capital Benchmark are adjustments in relation to items to which the Vendor has proposed adjustments pursuant to sub-clause (B) (in the case of the Completion Accounts and the Variable Intra-Group Debt Statement) and adjustments proposed in
the Benchmark Statement (in the case of the Working Capital Benchmark) and any such adjustments shall be: 

  

	 	(a)	in the case of the Completion Accounts and/or the Variable Intra-Group Debt Statement, within the range delineated by the contents of the Completion Accounts and/or the Variable
Intra-Group Debt Statement delivered by the Purchaser to the Vendor pursuant to sub-clause (A) and the adjustments proposed by the Vendor pursuant to sub-clause (B); and 

  

	 	(b)	in the case of the Working Capital Benchmark, within the range delineated by the Working Capital Benchmark as calculated in accordance with paragraph 3 of Part B of
Schedule 10 (Completion Accounts and Variable Intra-Group Debt Statement) and the adjustments proposed in the Benchmark Statement. 

  

	(E)	Following settlement of any matter in dispute (whether settled under sub-clause (C) or (D) or otherwise by agreement between the Vendor and the Purchaser), the
Completion Accounts, the Variable Intra-Group Debt Statement and the Working Capital Benchmark as so settled shall constitute the Completion Accounts, the Variable Intra-Group Debt Statement and the Working Capital Benchmark for the purposes of this
Agreement and shall be final and binding on the Vendor and the Purchaser. 

  

	(F)	The Vendor shall give the Purchaser and the Purchaser’s Accountants, and the Vendor shall procure that the members of the Vendor’s Group shall give the Purchaser and the
Purchaser’s Accountants, such access to those books, records, working papers and employees at the relevant premises of the Vendor’s Group (or under the control of the Vendor’s Group) which the Purchaser or the Purchaser’s
Accountants may reasonably require in connection with the preparation and review of the Completion Accounts, the Variable Intra-Group Debt Statement and the Benchmark Statement (if any) or with the review of any Dispute Notice. Such employees as to
whom the Purchaser or the Purchaser’s Accountants may reasonably require to have access shall be instructed to give promptly all such information and explanations as the Purchaser or the Purchaser’s Accountants may reasonably require for
these purposes and the Purchaser and the Purchaser’s Accountants shall be entitled to take photocopies of relevant documentation. 

  

	(G)	 The Purchaser shall give the Vendor and the Vendor’s Accountants, and the Purchaser shall procure that the members of the Purchaser’s Group shall give the
Vendor and the 

  

 11 

	 	 
Vendor’s Accountants, such access to those books, records, working papers and employees at the relevant premises of the Purchaser’s Group (or under
the control of the Purchaser’s Group) which the Vendor or the Vendor’s Accountants may reasonably require to review the Completion Accounts, the Variable Intra-Group Debt Statement and the Benchmark Statement (if any) and to determine
whether the Completion Accounts, the Variable Intra-Group Debt Statement and the Benchmark Statement (if any) have been prepared in accordance with Schedule 10 (Completion Accounts and Variable Intra-Group Debt Statement). Such employees as
to whom the Vendor or the Vendor’s Accountants may reasonably require to have access shall be instructed to give promptly all such information and explanations as the Vendor or the Vendor’s Accountants may reasonably require for these
purposes and the Vendor and the Vendor’s Accountants shall be entitled to take photocopies of relevant documentation. 

  

	(H)	Without limiting any other provision of this Agreement, until the Completion Accounts, the Variable Intra-Group Debt Statement and the Working Capital Benchmark shall have been
agreed by the Vendor and the Purchaser or determined by the Independent Accountants, the Vendor and the Purchaser shall each keep or cause to be kept proper and accurate records of all assets, rights and liabilities which are the subject of the
Completion Accounts, the Variable Intra-Group Debt Statement and the Working Capital Benchmark and each shall allow the Independent Accountants, and shall procure that the Independent Accountants are allowed, access to books, records, working papers
and employees on the basis set out in sub-clause (F) or (G) (as appropriate). This sub-clause (H) does not impose on the Purchaser any obligation to create or cause to be created any record of the Transferring Business to the
extent not in existence at Completion and either owned or under the control of a Company or purchased by the Purchaser or a Designated Purchaser under this Agreement. 

  

	(I)	Each party shall bear its own costs in relation to the preparation, determination and review of the Completion Accounts, the Variable Intra-Group Debt Statement and (if any) the
Benchmark Statement. The Vendor shall be responsible for the charges of the Vendor’s Accountants and the Purchaser shall be responsible for the charges of the Purchaser’s Accountants. The charges of the Independent Accountants shall be
shared equally by the Vendor and the Purchaser unless the Independent Accountants determine otherwise. 

  

	7.	COMPLETION 

  

	(A)	Completion of the sale and purchase of the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets shall take place (subject, in the case of
the Bedford Property, to the provision of Part C of Schedule 9 (Properties)) immediately following the execution of this Agreement at the offices of Slaughter and May at 4 Coleman Street, London EC2 and at such overseas locations as
may be agreed between the Vendor and the Purchaser. 

  

	(B)	At Completion, each of the Vendor and the Purchaser shall do or procure the carrying out of all those things listed in respect of it in Schedule 5 (Completion Arrangements).

  

 12 

	(C)	Neither the Vendor nor the Purchaser shall be obliged to complete the sale and purchase of any of the Shares, the Bedford Property, the US Business Assets, the IP Assets or the
Monoclonal Assets unless the other (the Vendor or the Purchaser as the case may be) shall have complied with its obligations under sub-clause (B) and Schedule 5 (Completion Arrangements) but this sub-clause (C) shall not
prejudice any other rights or remedies available to either party in respect of any default of the other party. 

  

	8.	THIRD PARTY CONSENTS FOR THE TRANSFER OF THE US BUSINESS ASSETS 

  

	(A)	Where any consent or agreement of any third party is required to the transfer of any US Business Asset (other than the benefit of a US Contract) and such consent or agreement has
not been obtained at or before Completion, the transfer of the relevant US Business Asset shall not take effect, notwithstanding Completion, until that consent or agreement has been obtained and the Vendor and the relevant Designated Purchaser shall
use their respective reasonable endeavours after Completion to obtain it as soon as possible. 

  

	(B)	No failure to obtain any consent or agreement referred to in sub-clause (A) and specifically referenced to the Warranty set out in paragraph 8(E) of Schedule 6
(Warranties) as a required consent or agreement in the Disclosure Letter shall constitute a breach of any of the Warranties. With the exception of the foregoing, the obligations and indemnities set out in this Clause 8, section 4(ii) of the
US Transfer Agreement and section 2 of the US Lease Assignments shall not preclude the Purchaser from making any claim and recovery (subject to the provisions of Schedule 7 (Limitation on Liability)) under any of the Warranties in respect of
any matter relating to any of the US Business Assets to the extent that such matter comprises a breach, or breaches, of any of the Warranties. 

  

	(C)	After Completion, and until such time as any consent or agreement referred to in sub-clause (A) is obtained, the Vendor shall, or shall procure that the relevant member of
the Vendor’s Group shall: 

  

	 	(i)	hold the benefit of the relevant US Business Asset referred to in sub-clause (A) on trust for the relevant Designated Purchaser; and 

  

	 	(ii)	so far as it lawfully may and subject to (except in respect of any Retained Liabilities) the relevant Designated Purchaser indemnifying it in respect of any liability, cost, damage
or expense which it may thereby incur, give all reasonable assistance to the relevant Designated Purchaser to enable it to enforce its rights in respect of the US Business Asset referred to in sub-clause (A). 

  

	9.	TRANSFER OF US CONTRACTS AND IP LICENCES 

  

	(A)	Subject to sub-clauses (B) and (C), the relevant Designated Purchaser shall become entitled to the benefits of the relevant members of the Vendor’s Group under
the US Contracts and the IP Licences with effect from Completion and this Agreement shall constitute: 

  

	 	(i)	an assignment by the Vendor (for itself and on behalf of the relevant members of the Vendor’s Group) of the benefit, subject to the burden, of all the IP Licences to the
relevant Designated Purchaser with effect from Completion; and 

  

 13 

	 	(ii)	an agreement by the Vendor (for itself and on behalf of the relevant members of the Vendor’s Group) to assign the benefit, subject to the burden, of all the US Contracts to the
relevant Designated Purchaser with effect from Completion. Such assignment of the US Contracts shall, subject to sub-clauses (B) and (C), be effected (in each case without prejudice to the obligations of the Vendor set out in this
sub-clause (A)(ii) and the procurement obligation of the Vendor set out in sub-clause 2(E)) by the US Transfer Agreement or, in the case of the leases relating to the US Properties, by the US Lease Assignments.

  

	(B)	Where any consent or agreement of any third party is required to enable the relevant Designated Purchaser to perform any US Contract or IP Licence after Completion or to enable the
Vendor or any member of the Vendor’s Group to transfer, or to procure the transfer of, the benefit or burden of any US Contract or IP Licence to the relevant Designated Purchaser, then the following provisions shall apply:

  

	 	(i)	neither this Agreement nor, to the extent relevant, the US Transfer Agreement or the US Lease Assignments shall constitute an assignment or an attempted assignment of the relevant
US Contract or IP Licence if or to the extent that such an assignment or attempted assignment would constitute a breach of such US Contract or IP Licence; 

  

	 	(ii)	after Completion the parties shall use their respective reasonable endeavours including, in the case of the Purchaser and without limitation, procuring (to the extent permitted by
any banking covenant to which any member of the Purchaser’s Group is subject pursuant to the financing arrangements entered, or to be entered, into by members of the Purchaser’s Group at or about the date hereof in order to consummate the
transactions contemplated by this Agreement) the provision of a guarantee from a member of the Purchaser’s Group, to obtain the consent or agreement of the relevant third party to whatever assignment, transfer, novation or other arrangement is
necessary to enable the relevant Designated Purchaser to assume the burden of and perform any such US Contract or IP Licence after Completion and to transfer the benefit of any such US Contract or IP Licence to the relevant Designated Purchaser; and

  

	 	(iii)	 after Completion, until the consent or agreement referred to in sub-clause (B)(ii) is obtained, the relevant Designated Purchaser shall, except to the extent
that the relevant US Contract or IP Licence prohibits it, perform all the obligations of the Vendor or the relevant member of the Vendor’s Group under such US Contract or IP Licence as agent for or sub-contractor to the Vendor or such member of
the Vendor’s Group and shall indemnify each member of the Vendor’s Group in respect of such performance or, to the extent that the relevant US Contract or IP Licence prohibits the relevant Designated Purchaser from so acting as agent or
sub-contractor or the relevant Designated Purchaser 

  

 14 

	 	 
cannot be permitted to act as agent or sub-contractor because of confidentiality obligations, the Vendor shall or shall procure that a member of the
Vendor’s Group shall, at the cost of the relevant Designated Purchaser and to the extent that the Vendor or the relevant member of the Vendor’s Group is able, put in place such other suitable arrangements in relation to such US Contract or
IP Licence as the Purchaser may reasonably request or do all such acts and things as the relevant Designated Purchaser may reasonably require to enable the due performance of the US Contract or IP Licence and to provide for the relevant Designated
Purchaser the benefits (subject as aforesaid to the burdens) of the US Contract or IP Licence, and the relevant Designated Purchaser shall indemnify each member of the Vendor’s Group in respect of all such arrangements, acts and things.

  

	(C)	After Completion, and until such time as the consent or agreement referred to in sub-clause (B) is obtained, the Vendor or the relevant member of the Vendor’s Group
shall be deemed to hold the benefit of the relevant US Contract or IP Licence on trust for the relevant Designated Purchaser and, so far as it lawfully may and subject to the relevant Designated Purchaser indemnifying it in respect of any liability,
cost, damage or expense which it may thereby incur, shall give all reasonable assistance to the relevant Designated Purchaser to enable it to exercise the rights of the relevant member of the Vendor’s Group so held on trust under the relevant
US Contract or IP Licence. The foregoing provisions of this sub-clause (C) shall not apply in relation to any IP Licence if and to the extent they are not lawfully permitted in relation to, or not possible without incurring a breach of, any
term of that IP Licence and, in such circumstances, the Vendor shall, or shall procure that the relevant member of the Vendor’s Group shall, so far as it lawfully may and subject to the relevant Designated Purchaser indemnifying it in respect
of any liability, cost, damage or expense which it may thereby incur, give all reasonable assistance to the relevant Designated Purchaser to enable it to exercise the rights of the relevant members of the Vendor’s Group under that IP Licence
until such time as the consent or agreement referred to in sub-clause (B) is obtained. 

  

	(D)	Subject to the other provisions of this Clause 9 and to Clause 10 (Assumed Liabilities and Retained Liabilities), from the Completion Date the relevant Designated
Purchasers shall carry out, perform and complete all the obligations and liabilities to be performed under the US Contracts and the IP Licences. 

  

	(E)	As soon as reasonably practicable after the obtaining of the relevant third party consent to the transfer of a US Property, the relevant member of the Vendor’s Group and the
relevant Designated Purchaser shall execute the US Lease Assignment with respect to that US Property. 

  

	(F)	 No failure to obtain any consent or agreement referred to in sub-clause (B) and specifically referenced to the Warranty set out in paragraph 8(E) of
Schedule 6 (Warranties) as a required consent or agreement in the Disclosure Letter shall constitute a breach of any of the Warranties. With the exception of the foregoing, the obligations and indemnities set out in this Clause 9, in
section 4(ii) of the US Transfer Agreement and in section 2 of the US Lease Assignments shall not preclude the Purchaser from making any claim and recovery (subject to the provisions of Schedule 7 

  

 15 

	 	 
(Limitations on Liability)) under any of the Warranties in respect of any matter relating to any of the US Contracts or the IP Licences to the extent that
such matter comprises a breach, or breaches, of any of the Warranties. 

  

	(G)	The provisions of this Clause 9 shall be without prejudice to the provisions of Clause 10 (Assumed Liabilities and Retained Liabilities). 

  

	10.	ASSUMED LIABILITIES AND RETAINED LIABILITIES 

  

	(A)	The Purchaser (on behalf of the relevant Designated Purchasers) hereby agrees with the Vendor that it will (or will procure that the relevant Designated Purchasers will) duly and
properly perform, assume, pay and discharge when due and indemnify each member of the Vendor’s Group against all Assumed Liabilities. Without limiting the foregoing, such assumption of the Assumed Liabilities shall, insofar as they relate to
the US Business or the US Business Assets and subject to the remaining provisions of this Clause 10, be effected by the US Transfer Agreement and the US Lease Assignments. The obligations and indemnities set out in this sub-clause (A),
in section 4(ii) of the US Transfer Agreement and in section 2 of the US Lease Assignments shall not preclude the Purchaser from making any claim and recovery (subject to the provisions of Schedule 7 (Limitations on Liability)) under any of
the Warranties in respect of any matter which is the subject of the Assumed Liabilities to the extent that such matter comprises a breach, or breaches, of any of the Warranties. 

  

	(B)	In this Agreement “Assumed Liabilities” means, subject to sub-clauses (C), (D), (E) and (G), all past (except to the extent satisfied at or
prior to the signature of this Agreement), present and future liabilities and obligations (including, without limitation, contingent liabilities or obligations) of the Vendor and each member of the Vendor’s Group (including, without limitation,
for the purposes of sub-paragraph (iii) below, Unipath Diagnostics S.A. (France)) of whatsoever nature in respect of: 

  

	 	(i)	the IP Licences; 

  

	 	(ii)	(other than the marketing, sale or use of Persona products, which matters are the subject of (iii) below) the US Business, the US Business Assets and the US Contracts, to the extent
such liabilities and obligations are or have been incurred in the ordinary course of the US Business (which liabilities and obligations shall include, for the avoidance of doubt and without limitation, the US Assumed Litigation);

  

	 	(iii)	 (subject to the second sentence of Clause 15(F)) any marketing, sales or use of Persona products, except to the extent that such liabilities and obligations
are liabilities and obligations of a member of the Vendor’s Group domiciled in the United States of America. For the avoidance of doubt, nothing in this Agreement shall impair, or operate as a waiver of, any right of a member of the
Vendor’s Group (a) to defend any claim in respect of any marketing, sales or use of Persona products on the basis that such liabilities or obligations are liabilities or obligations of any of the Companies, or (b) to recover from any of the
Companies in respect of any such liabilities or obligations; provided that no 

  

 16 

	 	 
member of the Vendor’s Group domiciled in the United States of America shall recover from any of the Companies any exemplary or punitive damages in
respect of any marketing, sales or use of Persona products; and 

  

	 	(iv)	(save for any Indirect Taxation of the Companies) Indirect Taxation to the extent that it is taken into account in calculating the Working Capital Amount. 

 

	(C)	Notwithstanding sub-clauses (A) and (B) the Assumed Liabilities shall not include the following (the “Retained Liabilities”):

  

	 	(i)	any liability or obligation of the Vendor or any other member of the Vendor’s Group for or in respect of Taxation (other than in respect of Indirect Taxation to the extent that
it is taken into account in calculating the Working Capital Amount) (a) arising in respect of any period of account for Taxation purposes ending on or before Completion or, in the case of any Straddle Period, in respect of the portion of the
Straddle Period ending on Completion, or (b) arising in respect of any acts, event or occurrences occurring on or before Completion, provided that the Taxation is properly attributable to a period specified in (a)); 

  

	 	(ii)	any liability or obligation of the Vendor or any other member of the Vendor’s Group for or in respect of Intra-Group Trading and Services Amounts to the extent that such
amounts are US Business Assets or are owed by the Vendor or any member of the Vendor’s Group at Completion to any of the Companies; 

  

	 	(iii)	any liability or obligation of the Vendor or any other member of the Vendor’s Group for or in respect of any indebtedness (which, for the purposes of this sub-clause
(C)(iii)) shall exclude amounts which are Intra-Group Trading and Services Amounts) incurred in relation to the US Business and owing to another member of the Vendor’s Group; 

  

	 	(iv)	any exemplary or punitive damages awarded against any member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) in respect of marketing,
sales or use of Persona products sold prior to Completion. For the avoidance of doubt, nothing in this Agreement shall impair, or operate as a waiver of, any right of a member of the Vendor’s Group (including, without limitation, Unipath
Diagnostics S.A. (France)) domiciled outside the United States of America (a) to defend any claim in respect of any marketing, sales or use of Persona products on the basis that such liabilities or obligations are liabilities or obligations of any
of the Companies, or (b) to recover from any of the Companies in respect of any such liabilities or obligations; 

  

	 	(v)	 any liability or obligation of the Vendor or any other member of the Vendor’s Group in respect of the US Business, any of the US Business Assets and/or any of
the US Contracts to the extent that such liabilities and obligations have been incurred outside the ordinary course of the US Business prior to Completion, 

  

 17 

	 	 
other than any other Assumed Liabilities of the type referred to in sub-clause 10(B) (i), (iii) or (iv); 

  

	 	(vi)	any liability or obligation of the Vendor or any other member of the Vendor’s Group in respect of bodily injury to any former employee of any member of the Vendor’s Group
in respect of the US Business or any US Employee, in each case arising out of and in the course of his employment with the relevant member of the Vendor’s Group before Completion; and 

  

	 	(vii)	any liability or obligation of the Vendor or any of the member of the Vendor’s Group in respect of the US Retained Litigation, 

  
 and the Vendor hereby agrees with the Purchaser that it will, or will
procure that the appropriate member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) will, duly and properly perform, assume and pay and discharge when due, and the Vendor will indemnify the Purchaser and
the other members of the Purchaser’s Group (other than, save in relation to sub-clause (C)(ii), the Companies) against all Retained Liabilities. 
  

	(D)	Notwithstanding any of the other provisions of this Agreement, the Assumed Liabilities shall not include any liability or obligation of the Captive Insurer. Accordingly, the
provisions of this Clause 10 shall be without prejudice to, and neither the Purchaser nor any other member of the Purchaser’s Group shall assume, or indemnify the Captive Insurer or any guarantor of the Captive Insurer in respect of, any
liability or obligation of the Captive Insurer in relation to the Assumed Liabilities or the obligations of the Vendor pursuant to sub-clause 15(H)(iv). 

  

	(E)	To the extent that the provisions of this Clause 10 would otherwise relate to the Employees or the Dutch Sales Staff, the Assumed Liabilities shall not extend to or include
any liability or obligation of the Vendor or any other member of the Vendor’s Group in respect of the Employees or the Dutch Sales Staff (including, without limitation, in relation to pensions). This sub-clause (E) is, however,
without prejudice to the provisions of Clause 13 (Employees) and Schedule 8 (Pensions) which shall apply in accordance with their terms to the transfer or assumption of any such liability or obligation. 

  

	(F)	The Purchaser covenants that, at any time and from time to time on or after Completion, it will (or will procure that the relevant Designated Purchaser will) execute and deliver all
such further instruments of assumption and acknowledgements or take such other action as the Vendor may reasonably request in order to effect the release and discharge in full of any Assumed Liability and the assumption of the Assumed Liabilities
and the substitution of the Purchaser or the relevant Designated Purchaser as the primary obligor in respect of the Assumed Liabilities in each case on a non-recourse basis to any member of the Vendor’s Group other than, for the purposes of
applicable insurance claims, the Captive Insurer. 

  

	(G)	 The Vendor (on behalf of itself and each other member of the Vendor’s Group (including, if applicable and without limitation, Unipath Diagnostics S.A.
(France))) shall 

  

 18 

	 	 
use reasonable endeavours to mitigate the loss of any member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France))
arising from any of the Assumed Liabilities. 

  

	(H)    (i)	As soon as reasonably practicable after the Vendor or any member of the Vendor’s Group receives or otherwise becomes actually aware of any assessment, claim, action or demand
against it by a third party (not being the Purchaser or a member of the Purchaser’s Group) or any other matter which is reasonably likely to give rise to any claim by it under the indemnity set out in sub-clause (A) (the
“Assumed Liabilities Indemnity”), the Vendor shall notify the relevant Designated Purchaser in writing of such assessment, claim, action or demand. Such notice shall include such details of the assessment, claim, action or
demand of which the Vendor or any member of the Vendor’s Group is actually aware (including the quantum of such assessment, claim, action or demand, if known) and which the Vendor, acting reasonably, considers relevant in order for the relevant
Designated Purchaser to evaluate the assessment, claim, action or demand and whether such assessment, claim, action or demand prima facie gives rise to a liability of the Purchaser or the relevant Designated Purchaser under the Assumed Liabilities
Indemnity. Any failure by the Vendor to comply with this sub-paragraph (H)(i) shall not, for the avoidance of doubt, of itself prevent the Vendor or any member of the Vendor’s Group from making a claim under the Assumed Liabilities
Indemnity but neither the Purchaser nor the relevant Designated Purchaser shall be liable to the Vendor or the relevant member of the Vendor’s Group in respect of the Assumed Liabilities Indemnity to the extent that the amount of the relevant
assessment, claim, action or demand thereunder is increased, or not reduced, as a result of such failure. 

  

	 	(ii)	Save with respect to the Persona Litigation (in respect of which the provisions of sub-clause 15(H)(ii) shall apply) and any Indirect Taxation taken into account in
calculating the Working Capital Amount, at the request of the relevant Designated Purchaser and subject to: 

  

	 	(a)	the relevant Designated Purchaser first admitting irrevocably and unconditionally (subject to the provisions of sub-clauses 10(G) and 10(H)(i)) to the Vendor in
writing and in a legally binding manner its liability under the Assumed Liabilities Indemnity in relation thereto; and 

  

	 	(b)	the Purchaser first undertaking in a deed to the Vendor that it will indemnify the Vendor and each other member of the Vendor’s Group (other than the Captive Insurer) against
all liabilities, costs, damages or expenses incurred by any member of the Vendor’s Group (other than the Captive Insurer) whether prior to, on or after the date of such deed in respect of such conduct, 

  
 the Vendor shall allow the relevant Designated Purchaser to take conduct as
the relevant Designated Purchaser may deem appropriate in connection with any such third party assessment, claim, action or demand in the name of the 

  

 19 

 
Vendor or the appropriate member of the Vendor’s Group (other than the Captive Insurer) and in that connection (subject to the indemnification as
aforesaid) the Vendor: 
  

	 	(j)	shall give, or cause to be given by the relevant members of the Vendor’s Group (other than the Captive Insurer), to the relevant Designated Purchaser all such assistance as the
relevant Designated Purchaser may reasonably require in avoiding, disputing, resisting, settling, defending or appealing any such assessment, claim, action or demand including, without limitation, such access to the books and records of any member
of the Vendor’s Group, and to the premises and employees and professional advisors of the Vendor’s Group, during Working Hours and on reasonable advance notice, as the Purchaser may reasonably require with respect to such third party
assessment, claim, action or demand; 

  

	 	(k)	shall, and shall procure that each other member of the Vendor’s Group shall, pass to the relevant Designated Purchaser copies of all notices or other documents received by the
Vendor or any member of the Vendor’s Group in relation to the relevant third party assessment, claim, action or demand, in each case as soon as reasonably practicable after receipt by the Vendor or relevant member of the Vendor’s Group
thereof; and 

  

	 	(l)	shall instruct such legal counsel as the relevant Designated Purchaser may nominate to act on behalf of the Vendor or any relevant member of the Vendor’s Group (other than the
Captive Insurer), as appropriate, but to act in accordance with the relevant Designated Purchaser’s instructions, 

  
 provided that no member of the Vendor’s Group shall be required to commence any legal proceedings where either: 
  

	 	(y)	the Vendor or the relevant member of the Vendor’s Group has effected a valid legal assignment all of its or their rights in relation to the relevant claim to the relevant
Designated Purchaser; or 

  

	 	(z)	where sub-clause (H)(ii)(y) does not apply, the Purchaser or relevant Designated Purchaser has not as soon as reasonably practicable notified the relevant party against whom
such proceedings are brought that such proceedings are being brought at the instruction of the relevant Designated Purchaser. 

  

	 	(iii)	 The Vendor shall not make (and shall procure that no member of the Vendor’s Group shall make) any admission of liability, agreement or settlement with any
third party in relation to any third party assessment, claim, action or demand in respect of which the relevant Designated Purchaser has admitted its liability and the Purchaser has given an undertaking to indemnify the Vendor and the other 

  

 20 

	 	 
members of the Vendor’s Group (other than the Captive Insurer), in each case in accordance with sub-clause (H)(ii), without the prior written
consent of the relevant Designated Purchaser. 

  

	 	(iv)	The relevant Designated Purchaser shall be entitled at any stage and in its absolute discretion to settle any assessment, claim, action or demand in respect of which the relevant
Designated Purchaser has admitted its liability and the Purchaser has given an undertaking to indemnify the Vendor and the other members of the Vendor’s Group (other than the Captive Insurer), in each case in accordance with sub-clause
(H)(ii). 

  

	 	(v)	The provisions of sub-clauses (H) (ii) to (iv) are subject to (i) the provisions of any policy of insurance under which the Vendor and/or any other member of the
Vendor’s Group (including, if applicable and without limitation, Unipath Diagnostics S.A. (France)) and/or any of the Companies makes a claim with respect to the assessment, claim, action, demand or other matter giving rise to the claim under
the Assumed Liabilities Indemnity, and (ii) in such case, the directions of the relevant insurer under such insurance policy; provided that the Vendor shall, and shall procure that the other members of the Vendor’s Group shall, and the
Purchaser shall, and shall procure that the other members of the Purchaser’s Group shall, comply with the provisions of sub-clauses (H)(ii) to (iv) to such extent as is permitted under the relevant insurance policy under which
such a claim is made or as the relevant insurers thereunder may otherwise consent. 

  

	(I)	The provisions of sub-clause 10(H) shall be without prejudice to the provisions of Clause 15 (Risk and Insurance). 

  

	(J)	The Purchaser (on behalf of the relevant Designated Purchaser) hereby agrees with the Vendor that it will duly pay and discharge (or procure to be paid and discharged) and indemnify
each member of the Vendor’s Group against all Taxation in respect of or in relation to the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets (or their use) in respect of (a) any period of account for Taxation
purposes beginning after Completion or, in the case of any Straddle Period, in respect of the portion of the Straddle Period beginning after Completion, or (b) arising in respect of any acts, events or occurrences occurring after Completion,
provided that the Taxation is properly attributable to a period specified in (a) above. 

  

	11.	INTRA-GROUP TRADING AND SERVICES 

  

	(A)	The Purchaser shall procure that each of the Intra-Group Trading and Services Amounts which is either an Assumed Liability in respect of the US Business or is owed at Completion by
any of the Companies to any member of the Vendor’s Group (in either case, in respect of the period up to Completion), together with any interest thereon payable in accordance with sub-clause (C), is paid to the relevant member of the
Vendor’s Group to whom it is owed:- 

  

	 	(i)	if the relevant parties have agreed in writing a period (not being longer than 30 days following Completion) during which the amount shall be paid, on or before the end of such
period; and 

  

 21 

	 	(ii)	if the relevant parties have not made such an agreement, within 30 days following Completion. 

  

	(B)	The Vendor shall procure that each of the Intra-Group Trading and Services Amounts the right to payment of which is a US Business Asset or which is owed at Completion by any member
of the Vendor’s Group to any of the Companies (in either case, in respect of the period up to Completion), together with any interest thereon payable in accordance with sub-clause (C), is paid to the relevant Company or the relevant
Designated Purchaser to whom it is owed:- 

  

	 	(i)	if the relevant parties have agreed in writing a period (not being longer than 30 days following Completion) during which the amounts shall be paid, on or before the end of such
period; and 

  

	 	(ii)	if the relevant parties have not made such an agreement, within 30 days following Completion. 

  

	(C)	If a Company, a Designated Purchaser or, as the case may be, a member of the Vendor’s Group fails to pay any Intra-Group Trading and Services Amount within the time allowed for
payment under sub-clause (A) or sub-clause (B) (as the case may be) then interest shall be payable thereon by that Company, Designated Purchaser or member of the Vendor’s Group (as appropriate) at the Agreed Rate (accrued daily
and compounded monthly) from the date on which such amount should have been paid until the actual date of payment thereof. For the avoidance of doubt, any interest payable by a Company, a Designated Purchaser or, as the case may be, a member of the
Vendor’s Group pursuant to this sub-clause (C) shall be in addition to any interest included in any Intra-Group Trading and Services Amount. 

  

	(D)	All payments referred to in this Clause 11 shall be made in immediately available funds without any set-off, restriction or condition and without any deduction or withholding
(save only as required by law) in such manner as is the normal business practice of the relevant payee and in the local currency of the relevant payee. 

  

	(E)	For the avoidance of doubt: 

  

	 	(i)	the provisions of this Clause 11 are without prejudice to the provisions of Clause 5 (Working Capital and Variable Intra-Group Debt Adjustments); and

  

	 	(ii)	 without prejudice to the provisions of the Transitional Services Agreement and with the exception of the Dutch Sales Representation Agreement, all agreements and
arrangements between any of the Companies and members of the Vendor’s Group which are in force immediately prior to Completion and pursuant to which any of the Companies provides or receives services to or from members of the Vendor’s
Group or pursuant to which members of the 

  

 22 

	 	 
Vendor’s Group license Intellectual Property to any of the Companies shall be terminated with effect from Completion. 

  

	12.	INTRA-GROUP GUARANTEES AND OTHER AGREEMENTS 

  

	(A)	Subject to sub-clauses (B) and (C), the Purchaser covenants that, at any time and from time to time on or after Completion, it will use its reasonable endeavours as
the Vendor may reasonably request to effect the release and discharge in full of any Assurance given by any member of the Vendor’s Group to any person in respect of any Assumed Liability or any obligation or liability of any of the Companies
and shall procure the assumption of, and the substitution of an appropriate member of the Purchaser’s Group as the primary obligor in respect of, each such Assurance in each case on a non-recourse basis to the members of the Vendor’s
Group. Pending such release and discharge, the Purchaser hereby agrees with the Vendor that it will assume and pay and discharge when due, and indemnify each member of the Vendor’s Group against, all such Assurances. 

 

	(B)	The obligations of the Purchaser under sub-clause (A) will not apply in relation to Assurances which are not disclosed and specifically referenced to this clause in the
Disclosure Letter (“Undisclosed Assurances”). Subject to sub-clause (C) the Purchaser acknowledges (on behalf of the Designated Purchasers and the Companies) that this Clause 12 shall be without prejudice to any
rights of subrogation which are available to any member of the Vendor’s Group in connection with an Undisclosed Assurance. 

  

	(C)	The provisions of this Clause 12 shall not apply in respect of any Assurance given by the Captive Insurer whether disclosed or not. 

  

	(D)	Without prejudice to the generality of sub-clause (A), the Purchaser and the Vendor will, and the Vendor will procure that Unipath Management Limited will, at Completion,
enter into a deed of undertaking in the Agreed Form (the “Deed of Undertaking”) pursuant to which: 

  

	 	(i)	Unipath Management Limited will release the guarantee given by the Vendor of certain of the obligations assumed by Unipath Limited (“Unipath’s
Obligations”) under the Business Purchase Agreement dated 20th July, 2001 between Unipath Management Limited and Unipath Limited (then named, respectively, Unipath Limited and MW Grieg Limited) (a copy of which is set out in
Attachment 1); and 

  

	 	(ii)	the Purchaser will be substituted as the guarantor of Unipath’s Obligations. 

  

	(E)	 The Vendor covenants that, at any time and from time to time on or after Completion, it will execute and deliver all such instruments of assumption and
acknowledgements or take such other action as the Purchaser may reasonably request (as soon as reasonably practicable following such request) in order to effect the release and discharge in full of any Assurance given by a Company to any person in
respect of any obligation or liability of any member of the Vendor’s Group (other than an Assumed 

  

 23 

	 	 
Liability), and shall procure the assumption of, and the substitution of an appropriate member of the Vendor’s Group as the primary obligor in respect
of, each such Assurance on a non-recourse basis to the Purchaser’s Group. Pending such release and discharge, the Vendor hereby agrees with the Purchaser (on behalf of itself and as trustee for the Companies) that it will assume and pay and
discharge when due, and indemnify each Company against, all such Assurances. 

  

	13.	EMPLOYEES 

  
 All Employees 
  

	(A)	At the request of the Vendor, the Purchaser has provided or will provide (as the case may be) the Vendor with all reasonable information which the Purchaser has access to, in order
to enable the Vendor to comply with any obligations to inform, consult or notify any person about the matters contemplated by this Agreement in so far as it relates to any Employee to the extent required by local law (including, without limitation,
the Transfer Regulations) and within the relevant time limits imposed by local law. 

  

	(B)	The provisions of this Clause 13 shall apply to a relevant Employee only for so long as he/she continues in the employment of any member of the Purchaser’s Group, any
Company or any person to whom the whole or any relevant part of the Transferring Business is transferred. Accordingly, the Purchaser shall procure that the acquirer from it or another member of the Purchaser’s Group of the whole or any part of
the Transferring Business or, directly or indirectly, the whole or any part of the issued share capital of any Company shall honour the obligations of the Purchaser under this Clause 13 (including, for the avoidance of doubt, under this
sub-clause (B)) in respect of all Employees concerned in the relevant acquisition or transfer. 

  

	(C)	The Purchaser agrees with the Vendor that it will indemnify each member of the Vendor’s Group against any claim relating to the terms and conditions of employment or benefits
offered to or provided to the Employees in connection with their employment (including, without limitation, claims relating to the terms and conditions of such employment or benefits and termination of such employment or benefits) provided that any
such claim arises after Completion and is in respect of the period after Completion and that any such liability has not arisen due to a breach of this Agreement by the Vendor. 

  

	(D)    (i)	 If the employment of any Employee is terminated within three years of the Completion Date the Purchaser shall procure that there shall, subject to sub-clause
(F)(ii) and F(iii), be applied in respect of such Employee contractual terms and conditions and those non-contractual terms and benefits listed in Attachment 14 (the “Non-Contractual Benefits”) giving due
credit to the Employee for any additional service or earnings from the Completion Date onwards) in such a manner as to be no less favourable than those applicable in respect of the particular Employee at the Completion Date and, in the case of the
US Employees, those set out in Attachment 12. For the avoidance of doubt, nothing in this sub-clause (D)(i) shall oblige the Purchaser to maintain any contractual term or Non-Contractual Benefit applicable to an Employee after the

  

 24 

	 	 
date of termination of their employment in the event that the Purchaser terminates the employment of that Employee within 3 years of the Completion Date
other than applicable severance payments which may be payable on or after termination of employment. 

  

	 	(ii)	The Purchaser shall procure that, in respect of benefits which are provided on the death or disability of an Employee or his spouse, child or dependant within the period of three
years following the Completion Date (other than benefits provided under a Vendor’s Group Plan or benefits under the Unilever Superannuation Fund (for the purposes of this Clause 13, a “Group Plan Benefit”)),
equivalent benefits shall be provided on such events which are payable in circumstances and under conditions which are not materially less favourable to the beneficiary concerned as those which would have applied had the death or disability occurred
whilst the beneficiary was a beneficiary of the arrangement in question under the provisions of that arrangement in force immediately prior to the Completion Date. 

  

	(E)	Without prejudice to sub-clause (D), the Purchaser shall procure that for a period of three years following the Completion Date Employees who are employed shall be employed,
subject to sub-clauses (F)(ii) and (iii), on contractual terms and conditions (including, without limitation, any related to length of service but excluding any Group Plan Benefit) and shall be granted Non-Contractual Benefits which are no
less favourable taken as a whole in respect of each Employee than those which apply in respect of each Employee at Completion. This undertaking does not constitute a guarantee that the Employees will continue to be employed following Completion. In
addition, in respect of Stephen Pepper, Lisa Link and Patricia Nasshorn the Purchaser shall procure that for a period of three years following the Completion Date these Employees shall be considered for a grant of discretionary share options in the
same way as any other individual of equivalent seniority employed by the Purchaser or any other member of the Purchaser’s Group. Further the Purchaser shall, on 1st July, 2002 or as soon as reasonably practicable thereafter but in any event
before 31st December, 2002, procure that the Employees shall be entitled to join the Purchaser’s existing US employee stock purchase plan in place as at the date of this Agreement (and any replacement scheme) and that the Employees shall be
entitled to participate in such scheme for at least 3 years following the Completion Date. 

  

	(F)    (i)	The Purchaser’s agreement to the provisions of sub-clauses (D) and (E) is given by the Purchaser on the express understanding that, if the Purchaser is in breach
of any such provisions, the Vendor may, at its absolute discretion, and without limitation, seek to procure compliance with such provisions by the Purchaser by applying to the court for damages and/or specific performance. 

 

	 	(ii)	 Notwithstanding sub-clause (D)(i) and sub-clause (E), the Purchaser shall have no obligation in respect of the application of Non-Contractual Benefits
in connection with the termination of the employment of any Employee within three years of the Completion Date and shall have no obligation in respect of the Non-Contractual Benefits to which any Employee is entitled in the period of 

  

 25 

	 	 
three years following the Completion Date except to the extent that such Non-Contractual Benefits are disclosed as set out in Attachment 14.

  

	 	(iii)	For the avoidance of doubt, the Purchaser shall be entitled, so far as is lawful and/or with the consent of the relevant Employee or Employees, to vary contractual terms and the
Non-Contractual Benefits referred to in sub-clause (D)(i) or the contractual terms and the Non-Contractual Benefits referred to in sub-clause (E) provided that such variations result in contractual terms and non-contractual benefits
which are no less favourable, taken as a whole in respect of each Employee, than those applicable on the Completion Date. 

  

	(G)	Without prejudice to the parties’ obligations under sub-clauses (A) to (F), each of the parties shall comply with the requirements relating to that party set out
in Annex B of Part A of Schedule 8 (Pensions). 

  

	(H)	For the avoidance of doubt, the provisions of this Clause 13 are without prejudice to: 

  

	 	(i)	the operation of any rule of law in relation to, or contractual term of, the terms and conditions of employment of the Employees; and 

  

	 	(ii)	any provision of Schedule 8 (Pensions). 

  

	(I)	If any Employee requires a work permit or employment pass or other approval (in this sub-clause, “Permits”) for his employment to continue for the period of
three years after the Completion Date the Purchaser undertakes to procure that any necessary applications are promptly made and to use its reasonable efforts to secure the necessary Permits. 

  
 Seconded Employees 
  

	(J)	The Vendor shall procure that the relevant member of the Vendor’s Group shall use its reasonable endeavours to procure that each Seconded Employee continues to be employed by a
member of the Vendor’s Group and is, in the case of Peter Welch and Michael Joubert, for the period of 24 months following Completion and, in the case of Fiona Humberstone, for the period of 12 months following Completion, seconded to work in
the Transferring Business. For the avoidance of doubt, neither the Vendor nor any other member of the Vendor’s Group, shall be under any obligation to provide to the Purchaser or any member of the Purchaser’s Group any replacements for the
Seconded Employees if either Seconded Employee resigns during his period of secondment or upon the death of any Seconded Employee. The Vendor shall inform the Purchaser promptly if any Seconded Employee resigns their employment with the
Vendor’s Group during their period of secondment. The following additional provisions shall apply with respect to the Seconded Employees: 

  

	 	(i)	 Each Seconded Employee shall be paid, and employment benefits shall be provided to such Seconded Employee, by a member of the Vendor’s Group and the Purchaser
shall pay to the Vendor (on behalf of the relevant member of the Vendor’s Group) (in advance) on the twentieth Business Day of each calendar 

  

 26 

	 	 
month the direct and indirect cost of salary and other employment benefits for that Seconded Employee for such calendar month including relevant Taxes,
social security costs and any notional or unfunded costs or accruals in relation to post-Completion service (for example in relation to Group Plan Benefits) together with the cost of benefit accrual charge on a local funding basis but ignoring any
surplus or deficit in the Vendor’s Group Plan in question on such basis as the Vendor may reasonably determine and agree with the Purchaser. To the extent such agreement is not reached, the relevant provisions of paragraph 10 of Part
A of Schedule 8 (Pensions) shall apply. If any payment made pursuant to this sub-clause (J)(i) is or is deemed to be the consideration for a taxable supply for VAT purposes, the Purchaser shall, in addition to such payment, pay (on
receipt of a VAT invoice) an amount equal to any VAT which may from time to time be chargeable in respect of any such supply. 

  

	 	(ii)	The relevant member of the Vendor’s Group may from time to time increase the salary benefits of such Seconded Employees; provided that any such increases are in line
with increases for similar employees of the Vendor’s Group. 

  

	 	(iii)	The Purchaser shall indemnify each member of the Vendor’s Group against any claim by, or relating to, a Seconded Employee except to the extent that such claim arises as a
result of acts or omissions of the Vendor or any other member of the Vendor’s Group. There shall be no liability under this sub-clause J(iii) to the extent of any amount recovered by the Vendor or any other member of the Vendor’s
Group under any policy of employers’ liability insurance in respect of any such claim by, or relating to, a Seconded Employee and the Vendor shall (and shall procure that the other members of the Vendor’s Group shall) use reasonable
endeavours (other than with respect to an insurance claim with no reasonable prospect of success) to recover under any relevant employees’ liability insurance policy maintained by any member of the Vendor’s Group in respect of any such
claim by, or relating to, a Seconded Employee. 

  

	 	(iv)	The Purchaser shall request that each Seconded Employee enters into a reasonable standard form confidentiality agreement for the benefit of the Purchaser’s Group in relation to
the confidential information which they shall obtain while on secondment and, in the event that any Seconded Employee declines to enter into such confidentiality agreement, the Purchaser shall, notwithstanding the further provisions of this
sub-clause (J), be entitled to terminate (without liability to the Purchaser’s Group) the secondment arrangement with that Seconded Employee immediately upon written notice to the Vendor. 

  
 If, after Completion, the Purchaser does not require the Seconded Employees
then it shall give the Vendor 3 months’ written notice of its wish to terminate the arrangements and the Vendor will be responsible for the salary and other benefits from the expiry of such notice, and any applicable retirement or severance
benefits of the relevant Seconded Employees. 
  

 27 

	(K)	For the avoidance of doubt, the Seconded Employees shall continue to be employed by a member of the Vendor’s Group for the period of 24 months and 12 months (as the case may
be) following Completion and this Agreement shall not operate to transfer their employment to the Purchaser or any other member of the Purchaser’s Group during the period of secondment. The Vendor agrees that the Purchaser may offer the
Seconded Employees employment with the Purchaser’s Group during the period of secondment and that if such offer is accepted by any Seconded Employee the relevant member of the Vendor’s Group shall release them from their contract of
employment. 

  

	(L)	For the avoidance of doubt the Purchaser shall have no obligation to employ or have seconded to the Purchaser or any other member of the Purchaser’s Group, Robert Field,
Malcolm Smith or Frans van der Ouderaa (the “Excluded Employees”). Nothing in this agreement shall operate to transfer the employment of the Excluded Employees to the Purchaser or the Purchaser’s Group and the Purchaser
shall not be liable for any salary, benefits, retirement or severance benefits relating to these Excluded Employees. The Vendor shall indemnify each member of the Purchaser’s Group against any liabilities, costs, damages, claims, expenses
arising or incurred by any member of the Purchaser’s Group regarding the Excluded Employees. 

  
 Vendor’s Indemnity 
  

	(M)	The Vendor shall perform and discharge all of its obligations in respect of all Employees and Seconded Employees in respect of the period prior to the Completion Date and shall
indemnify each member of the Purchaser’s Group against any liabilities, costs, damages, claims or reasonable expenses arising or incurred by any member of the Purchaser’s Group arising out of or relating to any act or omission by any
member of the Vendor’s Group or any Company in respect of the period prior to the Completion Date in respect of any of its obligations or duties to or in relation to the employment of any of the Employees or any former employees of any members
of the Vendor’s Group or any Company in respect of the period prior to Completion; provided that this sub-clause (M) shall not apply in relation to any liabilities in respect of the provision of Group Plan Benefits or in relation
to any liabilities disclosed in the Disclosure Letter or taken into account in the Completion Accounts or, for the avoidance of doubt, with respect to any liability or obligation in respect of bodily injury to any Employee in respect of which the
provisions of sub-clauses 10(C)(vi), 15(I), 15(J) and 15(K) shall apply. Such liabilities shall include those incurred as a result of the termination of employment of an Employee where notice has been given to the Employee by a member
of the Vendor’s Group or a Company prior to Completion but where such notice has not expired by Completion provided that, in such a case, shall exclude any liabilities arising in respect of the period on and after Completion due to the acts or
omissions of a member of the Purchaser’s Group. 

  

	(N)	The Purchaser shall and shall procure that each relevant member of the Purchaser’s Group shall: 

  

	 	(i)	as soon as practicable after becoming aware of such a matter, notify the Vendor of any matter which may be likely give rise to a claim for indemnification under sub-clause
(M); 

  

 28 

	 	(ii)	give the Vendor or the relevant member of the Vendor’s Group all reasonable co-operation, assistance and information which may be reasonably requested to dispute, resist,
appeal, defend, remedy or mitigate the matter; 

  

	 	(iii)	not admit, defend, compromise, negotiate or settle any claim arising out of such matter without the consent of the Vendor or the relevant member of the Vendor’s Group in
writing, such consent not to be unreasonably withheld or delayed; and 

  

	 	(iv)	allow the Vendor or the relevant member of the Vendor’s Group to have conduct of any litigation and negotiations in connection with any claim arising out of such matter if so
requested by the Vendor, 

  
 provided that there
should be no rights under this sub-clause (N) unless the Vendor agrees to indemnify the Purchaser against any reasonable costs, liabilities, damages, claims or expenses in respect of sub-clauses (N)(ii), (iii) and (iv) above. The
Purchaser undertakes that it will not, and will procure that no member of the Purchaser’s Group will, suggest, promote, support or assist any claim which may give rise to a claim for indemnification under sub-clause (M). 
  
 French Employees 
  

	(O)	The Vendor and the Purchaser anticipate that, in relation to the French Employees, the Transfer Regulations will apply to the sale and purchase of the Transferring Business under
this Agreement so that the contracts of employment of the French Employees will have effect after Completion as if originally made between the relevant Designated Purchaser and the French Employees. 

  

	(P)	If the contract of employment of any person who is not a French Employee is found or alleged to have effect after Completion as if originally made with the Purchaser or another
member of the Purchaser’s Group as a consequence of the application of the Transfer Regulations to the sale and purchase of the Transferring Business under this Agreement, the Vendor agrees that: 

  

	 	(i)	in consultation with, and if so requested by, the Purchaser, it will, within seven Business Days after being so requested by the Purchaser (as long as the request is made no later
than fourteen Business Days after the Purchaser becomes aware of such finding or allegation), make to that person an offer in writing to employ him under a new contract of employment to take effect upon the termination referred to below; and

  

	 	(ii)	the offer to be made will be such that none of the terms and conditions of the new contract will differ from the corresponding provision of that person’s contract of employment
immediately before Completion. 

  
 Upon that offer
being made (or at any time after the expiry of the seven Business Days if the offer is not made as requested), the Purchaser shall terminate, or shall procure the termination of the employment of the person concerned. 
  

 29 

	(Q)	If the contract of employment of any French Employee is found or alleged not to have effect after Completion as if originally made with the relevant Designated Purchaser as a
consequence of the application of the Transfer Regulations to the sale and purchase of the Transferring Business under this Agreement, the Purchaser agrees that: 

  

	 	(i)	in consultation with the Vendor, it will, within seven days of being so requested by the Vendor (as long as the request is made no later than fourteen Business Days after the Vendor
becomes aware of such finding or allegation), procure that the relevant Designated Purchaser makes to the relevant Employee an offer in writing to employ him under a new contract of employment to take effect upon the termination referred to below;
and 

  

	 	(ii)	the offer to be made will be such that none of the terms and conditions of the new contract (other than the identity of the employer) will differ from the corresponding provisions
of the Employee’s contract of employment immediately before Completion. 

  
 Upon that offer being made (or after the expiry of the seven Business Days if the offer is not made as requested), the Vendor shall forthwith terminate, or procure the termination of, the employment of the Employee
concerned. The Vendor undertakes that before any termination of employment of this nature it will not make any change, and will procure that no change is made, to the terms and conditions of the relevant Employee’s contract of employment as
existing immediately before Completion. 
  

	(R)	The Purchaser (on behalf of the relevant Designated Purchaser) shall indemnify each member of the Vendor’s Group against any liability whatsoever in respect of the French
Employees arising out of or relating to any act or omission by any member of the Purchaser’s Group either before or after Completion including, without limitation, any breach of the relevant Designated Purchaser’s obligations or duties
under the Transfer Regulations and any breach of the Purchaser’s obligations under sub-clauses 13(P) and 13(Q). This indemnity shall not extend to acts or omissions of the Companies prior to Completion. 

 
 US Employees 
  

	(S)	The following provisions of this Clause 13 are without prejudice to the preceding provisions of this Clause 13. 

  

	(T)	 Immediately upon Completion the Vendor shall procure that the US Business Seller terminates the employment of all the US Employees and the relevant Designated
Purchaser shall hire all the US Employees, on terms and conditions complying with the Purchaser’s obligations under the preceding provisions of this Clause 13 (including, for the avoidance of doubt each US Employee’s entitlements to
payments in respect of the Long Term Incentive Plan and Short Term Incentive Plan), and the Purchaser (on behalf of the relevant Designated Purchaser) shall indemnify each member of the Vendor’s Group against all costs, liabilities, damages and
expenses incurred by each member of the Vendor’s Group (including, for the avoidance of doubt, the termination benefits referred to in the succeeding sentence) as a result of any breach by the Purchaser or 

  

 30 

	 	 
relevant Designated Purchaser of this sub-clause (T). If the relevant Designated Purchaser fails so to hire any US Employee, the termination benefits
set out in Attachment 12 shall be applied by the Vendor except where the failure so to hire such US Employee was due to such US Employee’s refusal to accept an offer of employment from the relevant Designated Purchaser for a reason other
than: 

  

	 	(i)	the failure of the Purchaser or the relevant Designated Purchaser to comply with its obligations under the preceding provisions of this Clause 13; or

  

	 	(ii)	a reason set out in points 2) or 3) of the third bullet point of Attachment 12. 

  

	(U)	With respect to the US Employees, the Vendor shall procure that the US Business Seller and any other relevant member of the Vendor’s Group retain liability under any of their
group life, accident, worker’s compensation, medical, hospitalisation, prescription drug, dental, reimbursement account or short-term or long-term disability plans, whether or not insured, for any claims arising prior to the Completion Date
except to the extent such liabilities are disclosed in the Disclosure Letter or are taken into account in the preparation of the Completion Accounts and the Purchaser (on behalf of the relevant Designated Purchaser) shall assume all liability for
claims arising on or after the Completion Date under the relevant Designated Purchaser’s group life, accident, worker’s compensation, medical, hospitalisation, prescription drug, dental, reimbursement account or short-term or long-term
disability plans. For the purposes of this sub-clause (U), claims shall be deemed to have arisen: 

  

	 	(i)	with respect to all death or dismemberment claims, on the actual date of death or dismemberment; 

  

	 	(ii)	with respect to disability claims, on the day the claimant makes a claim for the relevant benefit; 

  

	 	(iii)	with respect to claims under salary continuance plans, on an ongoing basis by reference to the period to which the payment of salary relates; 

  

	 	(iv)	with respect to all hospital, medical, drug or dental claims, on the date the service or supply was purchased or received by the claimant; and 

  

	 	(v)	with respect to worker’s compensation claims which are single-accident specific, on the date of the occurrence, and with respect to all other worker’s compensation claims,
on the date the award is made; provided that neither the Vendor nor any other member of the Vendor’s Group shall have any liability in respect of matters arising prior to Completion which form part of any claim brought by an Employee
more than 3 years after Completion. 

  

	(V)	 The Vendor shall procure that the US Business Seller and any other relevant member of the Vendor’s Group transfer as of the Completion Date the excess, if any,
of the accumulated contributions to their health and dependent care flexible spending account plans made by the US Employees over the pay-outs made from such accounts to such employees as of the Completion Date, to corresponding accounts set up in
the relevant 

  

 31 

	 	 
Designated Purchaser’s flexible spending account plans. The Purchaser (on behalf of the relevant Designated Purchaser) agrees to cause its flexible
spending account plans to honour and continue through the end of the calendar year in which the Completion Date occurs the elections as in effect immediately prior to the Completion Date made by US Employees in respect of which a transfer is made.
Following the transfer to the Purchaser’s flexible spending account plans, the relevant Designated Purchaser shall be responsible for such transferred excess amounts in its flexible spending account plans and all claims (without duplication of
claims reimbursed by the US Business Seller or any other member of the Vendor’s Group prior to such transfer) made by US Employees for reimbursement under such flexible spending account plans. 

  

	(W)	On and after the Completion Date the Purchaser shall, or shall procure that the relevant members of the Purchaser’s Group shall, give the US Employees full credit for all
purposes (including for purposes of eligibility to participate, early retirement eligibility and early retirement subsidies and vesting) under any employee benefit plans or arrangements maintained by the members of the Purchaser’s Group for the
US Employees’ service with the US Business Seller or any other member of the Vendor’s Group to the same extent recognised by the US Business Seller and other relevant members of the Vendor’s Group immediately prior to Completion.

  

	(X)	To the extent permitted by law, the Purchaser shall, or shall procure that the relevant member of the Purchaser’s Group shall, assume all US Employees’ accrued
compensation, bonus and vacation liabilities, regardless of whether such liabilities relate to events which occurred on or prior to Completion (except for the unfunded deferred compensation arrangements for which liability will be retained by the US
Business Seller and any other relevant member of the Vendor’s Group). 

  

	(Y)	As of the Completion Date, the Purchaser (or the relevant Designated Purchaser) shall be responsible for any legally mandated continuation of health care coverage under federal or
state law for all US Employees and/or their covered dependants who have a loss of health care coverage under health plans applicable to any US Employee with effect from the Completion Date due to a qualifying event (as defined in Section 4980B of
the US Internal Revenue Code of 1986, as amended (the “Code”)) that occurs on or after the Completion Date. The Vendor or relevant member of the Vendor’s Group shall be responsible for any legally mandated continuation
of health coverage for all US Employees and/or their covered dependants who have a loss of health care coverage under health plans of the Vendor’s Group due to a qualifying event that occurs prior to the Completion Date except to the extent
that any relevant liabilities are disclosed in the Disclosure Letter or taken into account in the preparation of the Completion Accounts. 

  

	(Z)	 The Purchaser shall procure that for a period of three years following the Completion Date, each US Employee who is employed by any member of the Purchaser’s
Group or any person to whom the whole or part of the US Business or the Purchaser’s Group is transferred shall be provided with coverage under a “group health plan” (within the meaning of Code Section 4980B(g)(2)) that is
substantially similar (taking into account both the services provided under such plan and the cost of such coverage that is borne by the US Employee (both as an absolute amount and in comparison to the cost of such coverage payable by the employer))
to the coverage under a group health plan 

  

 32 

	 	 
maintained by the Vendor’s Group provided to such US Employee immediately prior to the Completion Date. 

  

	14.	PENSIONS 

  
 Each of the parties shall comply with the requirements relating to that party set out in Schedule 8 (Pensions). 
  

	15.	RISK AND INSURANCE 

  
 General 
  

	(A)	Risk in the IP Assets, the US Business Assets and the Monoclonal Assets shall pass to the Purchaser and the other relevant Designated Purchasers on Completion.

  

	(B)	The Purchaser acknowledges and agrees (on behalf of itself and each other member of the Purchaser’s Group) that, following Completion, in respect of all insurance cover
provided in relation to the Transferring Business pursuant to policies maintained by the Vendor’s Group (whether such policies are maintained with third party insurers or with other members of the Vendor’s Group), no claim shall be made by
any of the Companies or in relation to the IP Assets, the US Business, the US Business Assets, the Bedford Property or the Monoclonal Assets other than the following which shall be permitted: 

  

	 	(i)	any claim in respect of any losses, events, circumstances or occurrences notified to the relevant insurer before Completion; or 

  

	 	(ii)	any claim in respect of any losses, events, circumstances or occurrences arising prior to Completion where such losses, events, circumstances or occurrences are, subject to
sub-clauses (D) and (I), notified to the relevant insurer within 90 days of Completion, 

  
 and sub-clause B(i) and (ii) shall include, but not be limited to, any losses, events, circumstances or occurrences arising prior to
Completion in respect of the marketing, sale or use of any Persona products sold by any Company or any member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) before Completion. (For the purposes of this
Clause 15, Persona products will be deemed to have been sold when title in the Persona product passed from the relevant Company or member of the Vendor’s Group to a third party). 
  

	(C)	Subject to sub-clauses 15(B), (E), (F) and (J) and sub-clause 13(J)(iii), the Purchaser acknowledges and agrees (on behalf of itself and each
other member of the Purchaser’s Group) that, upon Completion, the insurance cover provided in relation to the Transferring Business pursuant to policies maintained by members of the Vendor’s Group shall cease. 

  

 33 

 Persona Litigation 
  

	(D)	The 90 day time limit (set out in sub-clause (B)(ii)) for notification of losses, events, circumstances or occurrences arising prior to Completion shall not apply in relation
to losses, events, circumstances or occurrences arising in respect of the marketing, sale or use of any Persona products sold by any Company or any member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France))
before Completion. 

  

	(E)	The Vendor undertakes that from Completion the Companies shall (at no cost to themselves) be Insureds under, subject to and as defined in the Liability Insurance Policies for the
purposes of the entitlement in Clause 15(B) to make notifications and claims under those Liability Insurance Policies in respect of any occurrence (for the purposes of the entitlement in Clause 15(B)) which arose prior to Completion.
Any such notification and claim shall be subject to the terms, conditions and limits of those Liability Insurance Policies. 

  

	(F)	If, in respect of any matter which would give rise to a claim under Clause 10(A) arising from Assumed Liabilities falling within sub-clause 10(B)(iii), any member of
the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) is entitled to claim under any Liability Insurance Policy, then no such matter shall be the subject of a claim under Clause 10(A) unless and until the
appropriate member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) shall have made a claim against its insurers and used all reasonable endeavours to pursue such insurance claim including where
reasonable and appropriate commencing and prosecuting proceedings against insurers (and for the purposes of dealing with insurers in respect of such insurance claims the appropriate member of the Vendor’s Group (including, without limitation,
Unipath Diagnostics S.A. (France)) shall act in accordance with the reasonable guidance and direction of the Purchaser). There shall, moreover, be no liability under Clause 10(A) in respect of Assumed Liabilities falling within sub-clause
10(B)(iii) to the extent of the amount recovered under such insurance claim except to the extent: 

  

	 	(i)	of the reasonable costs and expenses and any Taxation incurred or suffered by any member of the Vendor’s Group in connection with the recovery; and/or 

 

	 	(ii)	that the future insurance costs of the Vendor or any other member of the Vendor’s Group are increased by the matter giving rise to the insurance claim or the claim itself.

  

	(G)	The Vendor warrants (for itself and on behalf of the Share Sellers) to the Purchaser (for itself and on behalf of the other Designated Purchasers and the Companies) as at the date
hereof that: 

  

	 	(i)	the facts set out in a letter from the Captive Insurer to Richard Hazell of Unilever PLC dated 18th December, 2001, included at tab 15 of the Disclosure Bundle, are true and
accurate in all material respects and are not misleading in any material respect; 

  

 34 

	 	(ii)	the aggregate limit of indemnity of all group liability insurance cover provided in relation to the Transferring Business pursuant to the Liability Insurance Policies maintained by
the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) in respect of each policy year beginning in or after 1996 is not less than the amount specified in the following table: 

  

				
	 Period of Insurance Policy

	  	Amount
(‘000s)

	 midnight 30th April 1996 - Midnight 30th April 1997
	  	£	175,000
	 midnight 30th April 1997 - midnight 30th April 1998
	  	£	200,000
	 midnight 30th April 1998 - midnight 30th April 1999
	  	£	200,000
	 midnight 30th April 1999 - midnight 30th April 2000
	  	€	304,368
	 midnight 30th April 2000 - midnight 30th April 2001
	  	€	304,368
	 midnight 30th April 2001 - midnight 30th April 2002
	  	€	350,000

  

	 	(iii)	so far as it is aware, the aggregate of the amounts paid and reserved by the relevant insurers under the Liability Insurance Policies in respect of each policy year beginning in or
after 1996 in respect of any losses, events or circumstances notified to those insurers before the date of this Agreement under those Liability Insurance Policies (excluding any amounts paid or reserved in respect of claims made with respect to the
United States) do not exceed the amount specified in the following: 

  

			
	 Period of Insurance Policy

	  	Amount (€)

	 midnight 30th April 1996 - midnight 30th April 1997
	  	2,300,000
	 midnight 30th April 1997 - midnight 30th April 1998
	  	950,000
	 midnight 30th April 1998 - midnight 30th April 1999
	  	750,000
	 midnight 30th April 1999 - midnight 30th April 2000
	  	1,500,000
	 midnight 30th April 2000 - midnight 30th April 2001
	  	1,500,000
	 midnight 30th April 2001 - midnight 30th April 2002
	  	950,000

  

 35 

 and the Vendor is not aware of any facts or circumstances which would render any reserves incurred in any
such amounts materially understated. 
  

	 	(iv)	details (including, without limitation, details of the appropriate limits, the names of the relevant insurers thereunder and the address to which claims thereunder should be
notified) of each Liability Insurance Policy for each policy year beginning in or after 1996 is included at tab 16 of the Disclosure Bundle (it being acknowledged by the parties that copies of the first commercial market layer Liability Insurance
Policy for the period midnight 30th April 2001 - midnight 30th April 2002 so attached is the latest draft of such policy and has not yet been finalised as regards the scope of coverage for liability arising in the USA between the relevant members of
the Vendor’s Group and the insurers thereunder); 

  

	 	(v)	insurance for the primary layer written by the Captive Insurer and by each excess layer for each policy period beginning in or after 1996 is placed on substantially the same terms
and conditions (other than limits of indemnity) as the Liability Insurance Policy applicable to that period attached to the Disclosure letter; 

  

	 	(vi)	neither the Vendor nor the Companies nor any member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) has (by act or omission) done
anything which would render any Liability Insurance Policy void or voidable, or entitle any relevant insurer to repudiate or rescind any such Liability Insurance Policy, in respect of any claim made or notifiable under it relating to any matters,
losses, events, circumstances or occurrences arising prior to Completion in respect of the marketing, sale or use of Persona products sold by any Company or any member of the Vendor’s Group (including, without limitation, Unipath Diagnostics
S.A. (France)) before Completion; and 

  

	 	(vii)	any claim or circumstance known to any Company or any member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) relating to the
Transferring Business arising out of the marketing, sales or use of Persona products sold before Completion which is notifiable to any insurer under any Liability Insurance Policy has been notified to such insurer in accordance with the conditions
set out in the relevant Liability Insurance Policy. 

  

 36 

	(H)	The Vendor undertakes to the Purchaser (for itself and on behalf of each other member of the Purchaser’s Group) that: 

  

	 	(i)	it shall not (and shall procure that each member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) shall not) take or omit to take any
action which shall have the effect of making any Liability Insurance Policy void or voidable, or entitle any relevant insurer to repudiate or rescind any such Liability Insurance Policy, in respect of any claim made or notifiable before Completion
under it relating to any losses, events, circumstances or occurrences arising prior to Completion in respect of the marketing, sale or use of Persona products sold by any Company or any member of the Vendor’s Group (including, without
limitation, Unipath Diagnostics S.A. (France)) before Completion; 

  

	 	(ii)	it shall procure that after the date of this Agreement the Captive Insurer shall exercise its rights in relation to the conduct of any Persona Litigation under any Liability
Insurance Policy in a manner substantially consistent with its usual practices in relation to claims under those Liability Insurance Policies prior to the date hereof; provided that if so requested by the Purchaser, the Vendor and each other
relevant member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) shall use their reasonable endeavours to procure that the leading insurer on the first commercial market insurance layer affected shall
give guidance and directions to the Captive Insurer as to the exercise of those rights, and the Vendor shall procure that the Captive Insurer shall, if the Purchaser so requests, act in accordance with such guidelines and instructions;

  

	 	(iii)	it will procure that the Captive Insurer treats as a single occurrence under the Liability Insurance Policy for the 1996/97 policy year all claims notified or threatened before the
date hereof in respect of the marketing, sale or use of Persona products sold before Completion and any future claim containing substantially similar allegations to those already notified as Generic Claims; provided that the Captive Insurer
shall be entitled to treat occurrences after 30th April, 2001 but before Completion as falling within the Liability Insurance Policy for the 2001/02 policy year; and provided further that it is acknowledged by the parties that the claim of
Mrs. Wooster and any claim of a like nature or which is alleged to arise from a separate and distinct defect in any Persona product, or in the manner in which it was marketed, sold or used, may not form part of the Generic Claims and may be treated
by the Captive Insurer otherwise than as part of the single occurrence under the Liability Insurance Policy for the 1996/7 policy year; and 

  

	 	(iv)	 it will indemnify the Companies for any loss suffered by any of them by reason of the failure of the Captive Insurer, as a result of its insolvency, to satisfy on a
reasonably timely basis any liability of the Captive Insurer to any of the Companies under the Liability Insurance Policies underwritten by the Captive Insurer in favour of the Companies in respect of any claim arising from the marketing, sale or
use of Persona products sold before Completion notified by 

  

 37 

	 	 
or on behalf of any of them to it on or prior to the date hereof or pursuant to Clause 15. 

  
 Employers’ Liability 
  

	(I)	The 90 day time limit (set out in sub-clause (B)(ii)) for notification of losses, events, circumstances or occurrences arising prior to Completion shall not apply in relation
to losses, events, circumstances or occurrences arising in respect of any claim by an Employee or any past employee (or their executors, personal representatives or dependants) of any of the relevant Companies as set out in (i) or (ii) as
appropriate below arising out of and in the course of his employment by any such Company prior to Completion: 

  

	 	(i)	against any Company incorporated in England and Wales if that Company is insured in respect of those claims under any policy of employers’ liability insurance maintained by any
relevant member of the Vendor’s Group on or before Completion; and 

  

	 	(ii)	against each of the Companies if that Company is insured in respect of those claims under the extension in the Liability Indemnity Policies referred to in the Liability Insurance
Policies as “Residual Employers Liability Insurance”. 

  

	(J)	The Vendor undertakes that from Completion any Company incorporated in England and Wales shall (at no cost to themselves) be Insureds under, subject to and as defined in any policy
of employers’ liability insurance maintained by any relevant member of the Vendor’s Group on or before the date of Completion for the purposes of the entitlement in Clause 15(B) to make notifications and claims to which
sub-clause (I)(i) refers. Any such notification and claim shall be subject to the terms, conditions and limits of the relevant policy of employers’ liability insurance. For the avoidance of doubt, pursuant to sub-clause (E) each
of the Companies shall (at no cost to themselves) be Insureds under, subject to and as defined in the Liability Insurance Policies in respect of the “Residual Employers’ Liability Insurance” coverage provided under those Liability
Insurance Policies in respect of any occurrence in respect of any claim by an Employee or any past employee (or their executors, personal representatives or dependants) of any of the relevant Companies which arose out of and in the course of his
employment by any such Company prior to Completion. 

  

	(K)	The Vendor acknowledges that neither the Vendor nor any other member of the Vendor’s Group (including, if applicable and without limitation, Unipath Diagnostics S.A. (France))
shall take any voluntary action (excluding any action taken to effect completion of the transactions contemplated by this Agreement) to terminate any employers’ liability insurance arrangements effected prior to Completion by those Companies
incorporated in France, Germany, the Netherlands and Sweden which are not policies maintained by the Vendor’s Group. 

  

	(L)    (i)	 In calculating the liability of the Vendor for any breach of the undertakings set out in sub-clauses (E) and/or (J) or any of the warranties set out
in sub-clause (G) there shall be taken into account any repayment in respect of Tax or 

  

 38 

	 	 
any Relief arising as a result of the matter giving rise to such liability which the Purchaser or any member of the Purchaser’s Group obtains and
utilises on or before the date of calculating such liability. 

  

	 	(ii)	To the extent that the Purchaser (or the relevant member of the Purchaser’s Group) obtains and utilises any repayment in respect of Tax or any Relief arising as a result of the
matter giving rise to the liability of the Vendor for any breach of the undertakings set out in sub-clauses (E) and/or (J) or any of the warranties set out in sub-clause (G), the Purchaser (or the relevant member of the
Purchaser’s Group) shall, except to the extent that such utilisation has been taken into account in calculating the liability of the Vendor pursuant to paragraph (i) of this sub-clause (L), remit to the Vendor, within 15 Business
Days of actual receipt, an amount equal to so much of the economic benefit from that repayment in respect of Tax or Relief which the Purchaser (or the relevant member of the Purchaser’s Group) has actually received; provided that nothing
in this paragraph (ii) shall restrict the ability or discretion of the Purchaser (or the relevant member of the Purchaser’s Group) to order its Tax affairs in any way which it sees fit and to keep its Tax affairs confidential. Any
question concerning whether the Purchaser (or the relevant member of the Purchaser’s Group) has actually realised any such economic benefit or the quantum and timing of such benefit shall be determined by the auditors for the time being of the
Purchaser (or the relevant member of the Purchaser’s Group). 

  

	(M)	Without prejudice to the provisions of sub-clause 15(L), any payment made by a member of the Vendor’s Group or any other person in respect of any breach of the
undertakings set out in sub-clauses (E) and/or (J) or any of the warranties set out in sub-clause (G) shall be deemed, so far as possible, to be a reduction of the Cash Consideration payable by the Purchaser (on behalf of the
relevant Designated Purchaser) and such reduction shall be allocated to the greatest extent possible to the particular Shares or US Business Assets to which the claim relates. Any such payment, to the extent not deemed to be such a reduction of the
Cash Consideration, shall be made on an after Tax basis. 

  

	16.	DUTCH SALES STAFF 

  

	(A)	The Vendor shall procure that, as soon as reasonably practicable following Completion, consultation shall commence with the Dutch Sales Staff in the manner prescribed by the law of
the Netherlands with a view to securing their consent to enter into new contracts of employment, as soon as reasonably practicable after Completion, with the relevant Designated Purchaser or such Company as the Purchaser may nominate. The Vendor
shall use its reasonable endeavours to finalise the consultation process with the Dutch Sales Staff in an efficient and timely manner. 

  

	(B)	 The Vendor and the Purchaser agree to do all that they are each reasonably capable of doing to enable compliance with the relevant obligations of the law of the
Netherlands (including, without limitation, the prompt provision to the Vendor of all information reasonably necessary to satisfy the obligations of the Vendor or any other member of 

  

 39 

	 	 
the Vendor’s Group to consult with the Dutch Sales Staff in accordance with local law) with respect to the Dutch Sales Staff and to enter into new
contracts of employment. 

  

	(C)	If all or any member of the Dutch Sales Staff does not agree to enter into new contracts of employment with the relevant Designated Purchaser or such company as the Purchaser may
nominate within six months of Completion, the Vendor and the Purchaser shall procure that the Dutch Sales Representation Agreement is terminated with respect to the Dutch Sales Staff, unless the termination of the Dutch Sales Representation
Agreement less than 6 months after Completion would prejudice the on-going consultation process with the remaining Dutch Sales Staff, in which case the parties agree to delay such termination (or to terminate in respect of the non-transferring Dutch
Sales Staff only) until up to a maximum of 6 months from Completion. The Vendor (on behalf of Lever Fabergé Nederland B.V.) and the Purchaser (on behalf of Unipath Limited) agree that if the Dutch Sales Representation Agreement is terminated
pursuant to this sub-clause (C) then paragraph 10 of that agreement shall not apply and the Vendor shall procure that Lever Fabergé Nederland B.V. shall bear the costs referred to therein. If some of the Dutch Sales Staff do not agree
to enter into new contracts of employment with the relevant Designated Purchaser or such company as the Purchaser may nominate within six months of Completion, the Vendor shall procure that Lever Fabergé Nederland B.V. shall bear the costs
related to such non-transferring Dutch Sales Staff. 

  

	(D)	In the event that any or all of the members of the Dutch Sales Staff do enter into an employment contract with the relevant Designated Purchaser or such company as the Purchaser may
nominate within six months of Completion, the Purchaser will observe the obligations set out in sub-clauses 13(B) to 13(I) (Employees) and Part B of Schedule 8 (Pensions) as if they applied to such member of the Dutch Sales
Staff. Following any such transfer of the employment of such member of the Dutch Sales Staff, the Vendor and the Purchaser shall procure that the Dutch Sales Representation Agreement is terminated with respect to such member of the Dutch Sales
Staff. The Vendor (on behalf of Lever Fabergé Nederland B.V.) and the Purchaser (on behalf of Unipath Limited) agree that if the Dutch Sales Representation Agreement is terminated pursuant to this sub-clause (D) then paragraph 10 of
that agreement shall not apply and each of Lever Fabergé Nederland B.V. and Unipath Limited shall bear its own costs (if any) in relation to such termination. 

  

	(E)	The Vendor shall procure that neither Lever Fabergé Nederland B.V. nor any other member of the Vendor’s Group shall terminate the Dutch Sales Representation Agreement
otherwise than pursuant to sub-clause (C) or (D). The Purchaser (on behalf of Unipath Limited) agrees with the Vendor (on behalf of Lever Fabergé Nederland B.V.) that, pending termination of the Dutch Sales Representation
Agreement, Lever Fabergé Nederland B.V. will have no obligation to replace any member of the Dutch Sales Staff who leaves the employment of Lever Fabergé Nederland B.V. and that such a departure shall not constitute a breach of the
Dutch Sales Representation Agreement. 

  

	(F)	 The Vendor (on behalf of Lever Fabergé Nederland B.V.) and the Purchaser (on behalf of Unipath Limited) agree that if the Dutch Sales Representation
Agreement is 

  

 40 

	 	 
terminated other than pursuant to sub-clause (C) or (D) then paragraph 10 of that agreement shall apply. 

  

	(G)	For the avoidance of doubt, the Dutch Sales Staff shall continue to be employed by Lever Fabergé Nederland B.V. following Completion and this Agreement shall not operate to
transfer their employment to the Purchaser or any other member of the Purchaser’s Group until such time as they agree to enter into an employment contract with a member of the Purchaser’s Group. 

  

	17.	INTELLECTUAL PROPERTY 

  
 “Wrong Pockets” 
  

	(A)	If either party discovers that any of the Business IPR or Company IPR has been used exclusively by a member of the Vendor’s Group in the twelve months prior to Completion other
than in connection with the Transferring Business, or has never been used prior to Completion in connection with the Transferring Business (and for these purposes use includes use for research, development or commercially or any of them), the
Purchaser agrees to procure, at the Vendor’s cost, that such Intellectual Property is transferred to the Vendor or a company nominated by the Vendor for nominal consideration as soon as reasonably practicable. 

  

	(B)	If either party discovers that any member of the Vendor’s Group owns any Intellectual Property or know-how which has been used exclusively in the Transferring Business in the
twelve months prior to Completion, or has never been used by a member of the Vendor’s Group prior to Completion other than in connection with the Transferring Business (and for these purposes use includes use for research, development,
commercially or any of them), the Vendor agrees to procure that such Intellectual Property or know-how (as applicable) is transferred to the Purchaser or a company nominated by the Purchaser for nominal consideration as soon as reasonably
practicable. 

  
 Shared Rights 
  

	(C)	Each party shall have the rights and obligations relating to that party as set out in Schedule 16 (Intellectual Property Licences). 

  
 BD Licence 
  

	(D)	The Purchaser acknowledges that following Completion it or a member of the Purchaser’s Group may receive sums from Becton Dickinson pursuant to the BD Licence. The Purchaser
undertakes that: 

  

	 	(i)	 it will pay to the Vendor all sums received by the Purchaser or members of the Purchaser’s Group pursuant to Clause 3.1 of the BD Licence;
provided that any sum payable by the Purchaser pursuant to this sub-clause 17(D)(i) shall be reduced by an amount corresponding to Taxation payable by the Purchaser (or the relevant member of the Purchaser’s Group) in respect of
such sum 

  

 41 

	 	 
received, except to the extent that the corresponding sum payable by the Purchaser is tax deductible for the Purchaser (or relevant member of the
Purchaser’s Group) for the purposes of calculating income, profits or gains; 

  

	 	(ii)	neither it nor any member of the Purchaser’s Group will within five years from the date of this Agreement: 

  

	 	(a)	directly or indirectly grant a licence to Becton Dickinson or any related company to use the Biosensors Patents; or 

  

	 	(b)	enter into any other agreement with Becton Dickinson or any other company pursuant to which Becton Dickinson acquires the right to use the Biosensors Patents,

  
 in relation to electrochemical biosensors for
markers for diabetes, including the analysis of glucose in blood, on whatever terms and whether for monetary consideration or otherwise; and 
  

	 	(iii)	it will observe all the rights of Becton Dickinson under the BD Licence. 

  
 Treatment of Patent Cases 
  

	(E)	The provisions of Part B of Schedule 15 (Patent Cases) shall apply in relation to the treatment of the Patent Cases by the parties following Completion.

  
 Audit rights 
  

	(F)	Each of the Vendor and the Purchaser shall give the other party such access to those books, records and employees of the members of the Vendor’s Group or the Purchaser’s
Group (as the case may be) which the other party may reasonably require to ascertain that the members of the Vendor’s Group or the Purchaser’s Group (as the case may be) are in compliance with their obligations under this Clause 17
and/or Part B of Schedule 15 (Patent Cases). Such employees to whom the requesting party may require access shall be instructed to give promptly all such information and explanations as the requesting party may reasonably require for this
purpose, and each party shall be entitled to take photocopies of relevant documentation. 

  
 Payments 
  

	(G)	Any payments made by the Purchaser pursuant to sub-clause (D) shall be received by the Vendor on behalf of the relevant IP Assets Sellers. 

  

	18.	REORGANISATION INDEMNITY 

  

	(A)	 Subject to the remaining provisions of this Clause 18, the Vendor agrees with the Purchaser that it will indemnify each member of the Purchaser’s Group
in respect of all liabilities, losses, charges, costs, claims or demands (“Indemnified Losses”) to the extent that such Indemnified Losses are incurred by any member of the Purchaser’s 

  

 42 

	 	 
Group as a consequence of, or which would not have occurred or arisen either directly or indirectly but for, the implementation of the Reorganisation. Any
payments made by the Vendor pursuant to this sub-clause (A) shall be by way of adjustment to the Cash Consideration paid in respect of the Shares of Unipath Limited. 

  

	(B)	The indemnity set out in sub-clause (A) does not apply to any Indemnified Losses relating to Tax or UK stamp duty and the only remedy in respect of such Indemnified Losses
shall be pursuant to the Tax Covenant. 

  

	(C)	Where the Purchaser or any member of the Purchaser’s Group becomes aware of any liability of the Subsidiary or Unipath Limited arising as a result of the failure to obtain the
consent of a third party creditor (in circumstances where such consent was required under contract or law and was not obtained), or of any matter likely to give rise to such a liability, in each case which gives or is likely to give rise to
Indemnified Losses arising out of the sale by the Subsidiary to Unipath Limited of substantially all of the business and assets of the Subsidiary (in accordance with Step 2 of the Reorganisation (as described in Attachment 2) (the
“Step Two Hive-Down”)) the Purchaser shall notify the Vendor of such liability, or such matter, as soon as reasonably practicable after becoming aware thereof and the Purchaser shall, and shall procure that each other member
of the Purchaser’s Group shall (i) co-operate with the Vendor with regard to such liability or matter to the extent reasonable; and (ii) take all reasonable steps to mitigate any Indemnified Losses arising from such liability or matter,
provided that, for the purposes of this sub-clause (ii), it shall not be considered reasonable for any member of the Purchaser’s Group to take any step to the extent that it would prejudice the operations of the Transferring
Business. 

  

	(D)	 The Purchaser undertakes to the Vendor (for itself and as trustee for each member of the Vendor’s Group and for all the past, present and future employees and
directors of each member of the Vendor’s Group and of the Subsidiary (together, “Protected Persons”)) that it will not, and will procure that no member of the Purchaser’s Group (subject to sub-clause 18(F),
while it remains such a member) will, except in the case of fraud, make any claim or bring any proceedings (whether pursuant to the indemnity set out in sub-clause (A) or otherwise) alleging that the sale by the Subsidiary to the Vendor of
the entire issued share capital of Unipath Limited (in accordance with step three of the Reorganisation (as described in Attachment 2) (the “Step Three Sale”)) involved an unlawful distribution or an unlawful reduction
of capital effected by the Subsidiary. The undertaking by the Purchaser set out in this sub-clause (D) shall not apply where any Tax Authority makes a claim or brings proceedings against a member of the Purchaser’s Group alleging that
the Step Three Sale involved an unlawful distribution or an unlawful reduction of capital effected by the Subsidiary or if the Vendor or any member of the Vendor’s Group makes a legal challenge (other than by reason of the failure of the
Purchaser or any Designated Purchaser to have legal capacity to enter into this Agreement and/or to purchase such Shares hereunder) to the rights of the Purchaser or the relevant Designated Purchaser as purchaser of the Shares in Unipath Limited in
accordance with the provisions of sub-clauses 2(A) - (C). Where the undertaking by the Purchaser in this sub-clause (D) applies and is breached, or is alleged by the Purchaser or any member of the Purchaser’s Group to be invalid,
the indemnity set out in sub-clause (A) shall not apply in respect of any unlawful distribution or unlawful reduction of 

  

 43 

	 	 
capital effected by the Subsidiary in respect of the Step Three Sale or in respect of any claims or proceedings alleging any such unlawful distribution or
unlawful reduction of capital. The penultimate sentence of this sub-clause (D) is without prejudice to the second sentence of this sub-clause (D). 

  

	(E)	If, as a result of breach or invalidity of the undertaking of the Purchaser set out in sub-clause (D), any Protected Person becomes liable to pay any sum to a member of the
Purchaser’s Group (whether by agreement or otherwise) as a result of a determination or allegation (howsoever arising) that the Step Three Sale involved an unlawful distribution or an unlawful reduction of capital effected by the Subsidiary the
Purchaser shall, within five Business Days of it being notified of such liability, pay to the Vendor an amount equal to such sum. This sub-clause (E) is without prejudice to the second sentence of sub-clause (D)

  

	(F)	The Purchaser shall procure that any person not being a member of the Purchaser’s Group (an “Acquiring Person”) who, following Completion, acquires
(directly or indirectly) all or part of the issued share capital of the Subsidiary from a member of the Purchaser’s Group shall enter into undertakings in favour of the Vendor in terms which are equivalent to those set out in sub-clauses
(D) and (E). Any undertakings with the Vendor entered into by an Acquiring Person pursuant to this sub-clause (F) shall also impose an obligation on that Acquiring Person in equivalent terms to that imposed on the Purchaser by this
sub-clause (F). 

  

	19.	VENDOR’S WARRANTIES AND UNDERTAKINGS AND PURCHASER’S REMEDIES 

  

	(A)	Subject as provided in this Agreement, the Vendor warrants (for itself and on behalf of the Share Sellers, the US Business Seller and the IP Assets Sellers) to the Purchaser (for
itself and on behalf of the other Designated Purchasers) as at the date hereof in the terms set out in the Warranties. 

  

	(B)	Without prejudice to the warranties set out in Clause 15 and the other warranties referred to in sub-clauses E(iii), (iv) and (v), the only Warranties given:

  

	 	(i)	in respect of the Properties are those contained in paragraphs 19 and 5(A) of Schedule 6 (Warranties) and each of the other Warranties shall be deemed not to be
given in relation to the Properties; 

  

	 	(ii)	in respect of Intellectual Property and know-how matters and agreements granting rights to the same are those contained in the following paragraphs of Schedule 6
(Warranties): 

  
 2 (Capacity), 5 (Accuracy of
Information), 6 (Accounts), 7 (Events Since 31st December 2000), 8 (B) (iii), 8 (D), 8 (E), 9 (Powers of Attorney), 10 (Grants and Allowances), 11 (Licences), 13 (Insolvency), 14 (A), 15 (Delinquent and Wrongful Acts) (provided always that paragraph
15(A) shall not apply to infringement of third party Intellectual Property rights except to the extent it constitutes criminal infringement), 17 (Book Debts), 21 (Intellectual Property and Information Technology), 22 

  

 44 

 
(Competition and Trade Regulation Law), 23 (Insurances), 24(A), (B), (D), (E), (H) and (J) (Employment), 26 (The Accounts and Tax), 27 (Tax Events Since the
Accounts Date), 28 (Tax Returns, Disputes, Records and Claims etc), 29 (Stamp Duty and Stamp Duty Reserve Tax), 30 (Value Added Tax), 31 (Duties), 32 (Deductions and Withholdings), 33 (Residence), 34 (Tax on Disposal of Assets or Debts), 35 (Group
Relief), 36 (Intra-Group Transactions), 37 (US Business Assets and Monoclonal Assets), 39 (Non -Deductible Revenue Outgoing), 40 (Non-Deductible Royalty Payments, and 41 (Rollover and Holdover Claims); 
  
 and each of the other Warranties shall be deemed not to be given in relation
to Intellectual Property or know-how matters or agreements to the extent such agreements grant rights to the same. 
  
 None of the Warranties referred to in sub-clause 19(B)(ii) shall constitute or be construed as giving any warranty as to or relating to validity of
Intellectual Property except for the Warranty set out in paragraph 21(H) of Schedule 6 (Warranties). 
  
 Except in relation to the Warranty set out in paragraph 15(A) of Schedule 6 (Warranties), in respect of criminal infringement only and the
Warranty set out in paragraph 21(F) of Schedule 6 (Warranties), none of the Warranties referred to in this sub-clause 19(B)(ii) shall constitute or be construed as giving any warranty as to or relating to the infringement of third
party Intellectual Property rights. 
  

	 	(iii)	in respect of competition laws, anti-restrictive trade practice laws or anti-trust laws are those contained in paragraph 22 of Schedule 6 (Warranties) and each of the
other Warranties shall be deemed not to be given in relation to competition laws, anti-restrictive trade practice laws or anti-trust laws; 

  

	 	(iv)	in respect of employment matters (save for matters relating to pensions) are those contained in paragraphs. 6, 7, 14, 15(A) and 24 of Schedule 6 (Warranties)
and the Tax Warranties and each of the other Warranties shall be deemed not to be given in relation to employment matters (save for matters relating to pensions);  

  

	 	(v)	in respect of environmental matters (including worker health and safety matters) are those contained in the Environmental Warranties and each of the other Warranties shall be deemed
not to be given in relation to environmental matters (including worker health and safety matters); 

  

	 	(vi)	in respect of Tax are those contained in the Tax Warranties and each of the other Warranties shall be deemed not to be given in relation to Tax; and 

  

	 	(vii)	 in respect of pensions matters are those contained in paragraph 18 of Part A and paragraph 5 of Part B of Schedule 8 (Pensions),
paragraphs 6, 7 and 9 of 

  

 45 

	 	 
Schedule 6 (Warranties) and the Tax Warranties and each of the other Warranties shall be deemed not to be given in relation to pensions matters.

  

	(C)	The liability of the Vendor, the Share Sellers, the US Business Seller and the IP Assets Sellers under or in relation to the Warranties (including without limitation the Warranties
set out in Schedule 8 (Pensions)) and the Tax Covenant (but without prejudice to the provisions of the Tax Covenant) shall be limited as set out in Schedule 7 (Limitations on Liability). 

  

	(D)	The Vendor accepts and acknowledges that the Purchaser (for itself and on behalf of the other Designated Purchasers) is entering into this Agreement and the Specified Agreements in
reliance upon (i) the Warranties, (ii) the warranties set out in Clause 15, (iii) the warranties set out in clause 11 of the Transitional Services Agreement, (iv) the warranties set out in clause 14 of the Tax Covenant and (v) any other
warranties expressly set out as such in any of the Relevant Agreements. 

  

	(E)	The Purchaser acknowledges that no representations or warranties, express or implied, have been or are given by the Vendor, the Share Sellers, the US Business Seller, the IP Assets
Sellers or any other member of the Vendor’s Group which is a party to any of the Specified Agreements other than (i) the Warranties, (ii) the warranties set out in Clause 15, (iii) the warranties set out in clause 14 of the Tax Covenant,
(iv) the warranties set out in clause 11 of the Transitional Services Agreement and (v) any other warranties expressly set out as such in any of the Relevant Agreements. 

  

	(F)	Except in respect of the Warranties set out in paragraphs 21(L) and (M) of Schedule 6 (Warranties), the only remedy of the Purchaser for breach of the
Warranties or any of the other warranties specified in sub-clause (E) shall be damages (subject, in the case of the Warranties, to Schedule 7 (Limitations on Liability)) and the Purchaser hereby agrees to waive any other right, power
or remedy it may have in relation to a breach of the Warranties or any of the other warranties specified in sub-clause (E). The only remedy of the Purchaser for breach of the Warranties set out in paragraphs 21(L) and (M) of
Schedule 6 (Warranties) shall be damages and specific performance (subject in each case to Schedule 7 (Limitations on Liability)); provided that where an order for specific performance results in any Intellectual Property being
assigned from the Vendor’s Group to the Purchaser or a member of the Purchaser’s Group, the Purchaser shall simultaneously grant or procure the grant to the Vendor for itself and on behalf of each member of the Vendor’s Group of a
non-exclusive, perpetual, worldwide, assignable, irrevocable, royalty-free licence in respect of such Intellectual Property to use, manufacture, research, develop and/or sell products outside the Defined Field and the field of human and animal in
vitro diagnostics (with the right to sub-licence to (i) sub-contractors for the purpose of that sub-contractor carrying out research, development, manufacturing or sale activities on behalf of the Vendor’s Group, (ii) customers of the
Vendor’s Group in respect of products supplied to such customers by the Vendor’s Group, and (iii) then current sub-licensees of the Vendor’s Group under any of that Intellectual Property outside the Defined Field and the field of
human and animal in vitro diagnostics). Notwithstanding the foregoing the remedy available to the Purchaser for a breach of the Warranties set out in paragraphs 21(L) and (M) of Schedule 6 (Warranties) shall be damages or
specific performance, but not both. 

  

 46 

	(G)	The Vendor agrees and undertakes with the Purchaser (for itself and as trustee for each Employee and member of the Dutch Sales Staff and each Company and its directors) to waive
(and shall procure that each member of the Vendor’s Group shall waive), in the absence of fraud, any rights or claims which they may have in respect of any misrepresentation, inaccuracy or omission in relation to any information or advice
supplied or given by any Employee, any member of the Dutch Sales Staff, any Company or any of its directors in connection with the giving of any of the Warranties and/or any warranty set out in Clause 15 and/or any other warranty referred to
in sub-clause (E) and/or any other undertaking on the part of any member of the Vendor’s Group in this Agreement or any of the Specified Agreements and/or in connection with the preparation of the Disclosure Letter.

  

	(H)	Each of the Warranties set out in the several paragraphs of Schedule 6 (Warranties) and Schedule 8 (Pensions), the warranties set out in Clause 15 and/or the
other warranties referred to in sub-clause (E) is separate and independent and, except as expressly provided to the contrary in this Agreement, is not limited: 

  

	 	(i)	by reference to any other paragraph of either such Schedule; or 

  

	 	(ii)	by anything in this Agreement or any other Specified Agreement. 

  

	(I)	The Purchaser and, as applicable, any Designated Purchaser shall be entitled to claim both before and after Completion that any of (i) the Warranties (subject to Schedule 7
(Limitations on Liability)), (ii) the warranties set out in Clause 15 and/or (iii) any other warranties referred to in sub-clause (E) has or had been breached and Completion shall not constitute a waiver of any of the rights of the
Purchaser or any such Designated Purchaser. 

  

	(J)	The Vendor agrees that it will, and will procure that each relevant member of the Vendor’s Group will, after the Completion Date: 

  

	 	(i)	promptly provide the Purchaser with such information and access to personnel, premises, chattels and documents belonging to, or under the control of, any members of the
Vendor’s Group as the Purchaser may reasonably consider necessary in connection with the Persona Litigation and any claim under any Liability Insurance Policy in connection with the marketing, sale or use of Persona products; and

  

	 	(ii)	promptly, and in any event within five Business Days of receipt of any written communication relating to the Persona Litigation, provide the Purchaser with a copy of such written
communication. 

  
 The obligations of the Vendor
and the relevant members of the Vendor’s Group pursuant to this sub-clause (J) are subject to the Purchaser promptly reimbursing the Vendor and such members of the Vendor’s Group for the reasonable out-of-pocket expenses incurred by
them in performing such obligations. 
  

 47 

	(K)	The Vendor will indemnify each member of the Purchaser’s Group against all liabilities, losses, charges, costs, claims or demands arising from: 

  

	 	(i)	the Lease dated 20th October, 1981 between Standard Life Assurance Company (1) and Thameside Properties Limited (2) of Unit 3, Bilton Road, Kingsland Industrial Park, Basingstoke,
Hampshire and all documents supplemental or ancillary thereto; 

  

	 	(ii)	the Lease dated 4th November, 1974 between Stan-Bilt Limited (1) Oxoid Limited (2) and Brooke Bond Leibig Limited (3) of Industrial Premises on the Kingsland Industrial Estate,
Basingstoke, Hants and all documents supplemental or ancillary thereto; and 

  

	 	(iii)	the two Agreements for Sale dated 13th December, 2001 between Unipath Management Limited (1) and Unilever U.K. Central Resources Limited (2); 

  
 (each of which documents is set out in Attachment 9), 
  
 Provided always that the Subsidiary uses reasonable endeavours to collect
sums owing to it in respect of any sub-letting of the properties referred to at (i) and (ii) above. 
  

	(L)	The Vendor agrees (for itself and on behalf of each other member of the Vendor’s Group) and undertakes with the Purchaser (for itself and on behalf of each other member of the
Purchaser’s Group) that from Completion, no member of the Vendor’s Group shall have any right, title or interest in, and no member of the Vendor’s Group (nor, so far as achievable using reasonable endeavours, any member of the
Vendor’s Group which ceases to be such a member before the third anniversary of the date of this Agreement) shall use, the word “Unipath” or any word similar thereto or any colourable imitation thereof or any name or mark which
includes or consists thereof, provided that nothing in this clause shall prevent members of the Vendor’s Group from using “Uni”, either on its own or as a prefix, provided such use does not cause confusion with any part of the
Transferring Business’ use of the word “Unipath”. 

  

	(M)	Subject to sub-clause 32(B) (Announcements) and sub-clause 33(B) (Confidentiality) and without prejudice to sub-clause 17(E) (Intellectual Property), the Vendor
undertakes on behalf of itself and each other member of the Vendor’s Group (and, so far as achievable using reasonable endeavours, any member of the Vendor’s Group which ceases to be such a member before the third anniversary of the date
of this Agreement) to treat as strictly confidential and not disclose to any person (other than other members of the Vendor’s Group on a confidential basis) any Purchaser Confidential Information. The Vendor acknowledges (for itself and on
behalf of each other member of the Vendor’s Group) that any future use of Purchaser Confidential Information is without representation, warranty or liability on the part of any member of the Purchaser’s Group. No updates of the Purchaser
Confidential Information will be provided by any member of the Purchaser’s Group to any member of the Vendor’s Group. 

  

	(N)	 The Vendor shall procure that, for a period of two years from the date of Completion, there shall be prepared in relation to the US Business, where reasonably
required by 

  

 48 

	 	 
the Purchaser and subject to reimbursement by the Purchaser of the reasonable out-of-pocket expenses of any relevant member of the Vendor’s Group:

  

	 	(i)	financial data required for the preparation of financial accounts, management accounts or statutory accounts for any member of the Purchaser’s Group which relate, in each case,
to a period of account which is closed or in progress at Completion; and 

  

	 	(ii)	any data required for compliance with any reporting requirements of any Stock Exchange or securities or other regulatory authority or under any applicable law, rule or regulation
(including, without limitation, the American Stock Exchange), 

  
 which shall each be delivered to the Purchaser as soon as reasonably practicable following receipt by the Vendor of a written request therefor by the Purchaser. 
  

	(O)	Subject to sub-clause 33(B) and save as expressly permitted by sub-clause 17(C) the Vendor undertakes, for itself and on behalf of each other member of the
Vendor’s Group (and, so far as achievable using reasonable endeavours, any member of the Vendor’s Group which ceases to be such a member before the third anniversary of the date of this Agreement) that it will not use or disclose any
confidential know-how of the Companies or any confidential know-how forming part of the US Business. 

  

	(P)    (i)	The Purchaser warrants to the Vendor that: 

  

	 	(a)	the common stock, par value $0.001 per share, of the Purchaser is listed on the American Stock Exchange and the Purchaser is a reporting company for purposes of the United States
securities laws; 

  

	 	(b)	the Purchaser is required to make certain periodic and other filings with the United States Securities and Exchange Commission (the “SEC”) under the United
States Securities Exchange Act of 1934, as amended (the “US 1934 Act”) and the rules and regulations promulgated thereunder; 

  

	 	(c)	the Purchaser will be required to file certain financial information pertaining to the Transferring Business with the SEC pursuant to Item 7 of the Current Report on Form 8-K
(“Form 8-K”) as contemplated by the US 1934 Act and the rules and regulations promulgated thereunder and may, if it registers any securities, be required to file certain similar financial information under the United States
Securities Act of 1933, as amended (together with the US 1934 Act, the “US Securities Laws”) and the rules and regulations promulgated thereunder (such required financial information, the “Required
Information”); 

  

	 	(d)	 the Required Information may include audited financial statements of the Transferring Business for the three most recent fiscal years, together with unaudited
financial statements of the Transferring Business for the interim period that ends within 135 days of the filing 

  

 49 

	 	 
date and a comparative interim period for the prior year, and certain pro-forma information; 

  

	 	(e)	the Form 8-K reporting the consummation of the transactions contemplated by this Agreement must be filed by the Purchaser with the SEC not more than 15 days after the consummation
of the transactions contemplated by this Agreement; and 

  

	 	(f)	the Required Information must be filed by the Purchaser with the SEC not more than 60 days after the due date for the filing of the Form 8-K referred to in sub-clause
(P)(i)(e). 

  

	 	(ii)	The Vendor agrees that it will, and will procure that each relevant member of the Vendor’s Group will, use its or their reasonable endeavours, having regard to the time periods
set out in sub-clause (P)(i), to assist the Purchaser and the Purchaser’s Accountants in the preparation of the Required Information and, upon reasonable notice in writing, the Vendor, or such other member of the Vendor’s Group,
will provide to the Purchaser or the Purchaser’s Accountants (subject to the execution of customary hold harmless letters between the Vendor and/or the Vendor’s Accountants, on the one hand, and the Purchaser and/or the Purchaser’s
Accountants, on the other) (a) such financial and other information, records and documents relating to the Transferring Business; (b) such access to the Vendor’s Accountants and the employees of the Vendor and the other members of the
Vendor’s Group; and (c) such access for the Purchaser’s Accountants but not the Purchaser to the working papers of the Vendor’s Accountants in relation to prior audit work which relate exclusively to the Transferring Business, in each
case as the Purchaser or the Purchaser’s Accountants may reasonably request in order to prepare and audit the Required Information (such audit to be performed in accordance with United States generally accepted auditing standards);
provided that in the case of access to working papers as referred to in (c) above, any information that relates to the procedures or processes used by the Vendor’s Group (or part thereof) generally and not exclusively relating to the
Transferring Business shall only be made available to the Purchaser’s Accountants subject to the execution of mutually satisfactory restricted access agreements between the Vendor and/or the Vendor’s Accountants, on the one hand, and the
Purchaser and/or the Purchaser’s Accountants, on the other. 

  

	 	(iii)	For the avoidance of doubt, neither the Vendor nor any other member of the Vendor’s Group nor any of its or their employees, the Vendor’s Accountants or any other
accountant retained by any member of the Vendor’s Group, shall, or shall be required pursuant to the provisions of this sub-clause (O) to, audit, review or perform any other procedures, or provide any opinion, report or letter, with
respect to the Required Information or any of the information provided by the Vendor, any other member of the Vendor’s Group or the Vendor’s Accountants to the Purchaser or the Purchaser’s Accountants under this sub-clause (P).

  

 50 

	 	(iv)	The obligations of the Vendor and the relevant members of the Vendor’s Group pursuant to this sub-clause (P) are subject to the Purchaser promptly reimbursing the Vendor
and such members of the Vendor’s Group for the reasonable out-of-pocket expenses incurred by them in performing such obligations. 

  

	20.	PURCHASER’S WARRANTIES 

  

	(A)	The Purchaser warrants to the Vendor that:- 

  

	 	(i)	the Purchaser has the corporate power and authority to enter into and perform this Agreement and each of the Purchaser and the other relevant members of the Purchaser’s Group
(other than the Companies) has the corporate power and authority to enter into and perform any other agreement required to be entered into by it under this Agreement; 

  

	 	(ii)	this Agreement constitutes and the other Specified Agreements to be executed by any member of the Purchaser’s Group (other than the Companies) which are to be delivered at
Completion will, when executed, constitute binding obligations of the relevant members of the Purchaser’s Group (other than the Companies) in accordance with their respective terms; 

  

	 	(iii)	the execution and delivery of this Agreement and the other Specified Agreements and the performance by each relevant member of the Purchaser’s Group (other than the Companies)
of its obligations hereunder and thereunder will not: 

  

	 	(a)	result in a breach of any provision of the memorandum or articles of association or by-laws or equivalent constitutional documents of that member of the Purchaser’s Group;

  

	 	(b)	result in a breach of, or constitute a default under, any instrument to which that member of the Purchaser’s Group is a party or is bound; 

  

	 	(c)	result in a breach of any order, judgment, award, injunction or decree of any court or governmental agency or of any other restriction of a similar nature to which that member of
the Purchaser’s Group is a party or is bound; 

  

	 	(d)	require the consent of its shareholders; or 

  

	 	(e)	require that member of the Purchaser’s Group to obtain any consent or approval of, or give any notice to or make any registration with, any governmental or other authority
which has not been obtained or made at the date of this Agreement and is in full force and effect where failure to obtain such consent or approval, give such notice or make such registration is material in the context of the transactions
contemplated by this Agreement; 

  

 51 

	 	(iv)	the Purchaser has immediately available on an unconditional basis (subject only to Completion) the necessary cash resources to meet its obligations under Clause 3 (Cash
Consideration), Clause 4 (Fixed Intra-Group Debt Amounts) and Clause 5 (Working Capital and Variable Intra-Group Debt Adjustments) of this Agreement; and 

  

	 	(v)	there are no: 

  

	 	(a)	outstanding judgments, orders, injunctions or decrees of any governmental or regulatory body or arbitration tribunal against or affecting any member of the Purchaser’s Group;

  

	 	(b)	lawsuits, actions or proceedings in being or, to the knowledge of the Purchaser, pending or threatened against or affecting any member of the Purchaser’s Group; or

  

	 	(c)	investigations by any governmental or regulatory body which are, to the knowledge of the Purchaser, pending or threatened against any member of the Purchaser’s Group,

  
 and which, in the case of each of
sub-paragraphs (v)(a), (b) and (c), have or would be likely to have a material adverse effect on the ability of the Purchaser or any other member of the Purchaser’s Group to execute and deliver, or perform its obligations under,
this Agreement and any other documents which are to be executed by the Purchaser or any other member of the Purchaser’s Group and which are to be delivered at Completion. 
  

	(B)	The Purchaser accepts and acknowledges that the Vendor is entering into this Agreement in reliance upon (i) the warranties set out in sub-clauses 20(A) and 19(P), and
(ii) any other warranties expressly set out as such in any of the Relevant Agreements. 

  

	(C)	The Vendor acknowledges that no representations, express or implied, have been or are given by the Purchaser, any Designated Purchaser or any other member of the Purchaser’s
Group which is a party to any of the Specified Agreements other than (i) the warranties set out in sub-clauses 20(A) and 19(P), and (ii) the other warranties expressly set out as such in any of the Relevant Agreements.

  

	(D)	The Vendor shall be entitled to claim both before and after Completion that any of (i) the warranties contained in sub-clauses 20(A) or 19(P), and/or (ii) any of the
other warranties referred to in sub-clause (C) has or had been breached and Completion shall not constitute a waiver of any of the Vendor’s rights. 

  

	(E)	The only remedy of the Vendor for breach of the warranties set out in sub-clauses 20(A) and 19(P) and any of the other warranties referred to in sub-clause (C)
shall be damages and the Vendor hereby agrees to waive any other right, power or remedy it may have in relation to a breach of such warranties. 

  

 52 

	21.	PURCHASER’S UNDERTAKINGS 

  

	(A)	The Purchaser agrees and undertakes on behalf of itself and each other member of the Purchaser’s Group that (in the absence of fraud) it has no rights in relation to the
matters contemplated by this sub-clause (A) against, and shall not make any claim against, any employee, director or agent of any member of the Vendor’s Group on whom the Vendor may have relied before agreeing to any term of this
Agreement or any other agreement or document referred to herein or entering into this Agreement or any other agreement or document referred to herein including, without prejudice to the generality of the foregoing, any such persons as are named in
the definition of “so far as the Vendor is aware”. The agreement and undertaking set out in this sub-clause 21(A) is without prejudice to any rights of any member of the Purchaser’s Group described in sub-clause 30(E).

  

	(B)	Subject to sub-clause 32(B) (Announcements) and sub-clause 33(B) (Confidentiality) and without prejudice to sub-clause 17(E) (Intellectual Property), the
Purchaser undertakes on behalf of itself and each other member of the Purchaser’s Group (and, so far as achievable using reasonable endeavours, any member of the Purchaser’s Group which ceases to be such a member before the third
anniversary of the date of this Agreement) to treat as strictly confidential and not disclose to any person (other than other members of the Purchaser’s Group on a confidential basis) any Vendor Confidential Information. The Purchaser
acknowledges (for itself and on behalf of each other member of the Purchaser’s Group) that any future use of Vendor Confidential Information is without representation, warranty or liability on the part of any member of the Vendor’s Group.
No updates of the Vendor Confidential Information will be provided by any member of the Vendor’s Group to any member of the Purchaser’s Group. 

  

	(C)	The Purchaser acknowledges and agrees on behalf of itself and each other member of the Purchaser’s Group that nothing in this Agreement shall operate as an agreement to
transfer (nor shall transfer) any right, title or interest in, and (subject to sub-clauses (D) and (E) and the provisions of the Transitional Services Agreement), from Completion, the Purchaser shall procure that no member of the
Purchaser’s Group (and, so far as achievable using reasonable endeavours, any member of the Purchaser’s Group which ceases to be such a member before the third anniversary of the date of this Agreement) shall use, the words
“Unilever”, “Lever” or “Conopco” or any of them or any letter combination or words similar thereto or any colourable imitation thereof or any name or mark which includes or consists thereof (the “Unilever
Marks”); provided that nothing in this clause shall prevent any member of the Purchaser’s Group from using “Unipath” or any trade mark forming part of the Business IPR or any trade mark owned by any of the Companies.

  

	(D)	The Vendor (on behalf of itself and as agent for the Vendor’s Group) grants to the Companies and, in relation to the US Business, the relevant Designated Purchaser, subject to
the terms of this sub-clause (D) an irrevocable, royalty-free, non-exclusive licence: 

  

	 	(i)	to continue to use and supply existing stocks, packaging, sales literature, stationery, marketing materials and similar materials bearing the Unilever Marks (or any of them) for a
period not to exceed 9 months from Completion; and 

  

 53 

	 	(ii)	to continue to apply the Unilever Marks in the same manner as applied at Completion to products, packaging, sales literature, stationery, marketing materials and similar materials
used or supplied by the Transferring Business for a period not to exceed 3 months from Completion and to use and supply any of the same for a period not to exceed 9 months from Completion; 

  
 provided that the Purchaser shall, and shall procure that the Companies and
each of the businesses within the Transferring Business shall, use all reasonable endeavours to cease all use of the Unilever Marks as soon as reasonably practicable after Completion. 
  

	(E)	The Purchaser shall, and shall procure that the Companies and each of the businesses within the Transferring Business shall, by the last day of the ninth month following the
Completion Date, destroy or delete from existing stocks, packaging, sales literature, stationery, marketing materials and similar materials, building, signage and vehicles, the Unilever Marks. 

  

	(F)	The Purchaser shall have exclusive control and undertakes with the Vendor (for itself and as trustee for each member of the Vendor’s Group) that it will (without prejudice to
the Transitional Services Agreement) take over all and any administrative functions relating to the Business IPR and Company IPR immediately following Completion and that it will be responsible for paying any filing, prosecution, maintenance and
renewal fees relating to such Business IPR and Company IPR which fall due for payment after Completion. 

  

	(G)	The Purchaser shall procure that, for a period of two years from the date of Completion, each Company shall prepare and there shall be prepared in relation to the US Business, where
reasonably requested by the Vendor and subject to reimbursement by the Vendor of the reasonable out-of-pocket expenses of the Company and/or any other relevant member of the Purchaser’s Group: 

  

	 	(i)	financial data required for the preparation of financial accounts, management accounts or statutory accounts for any member of the Vendor’s Group which relate, in each case, to
a period of account which is closed or in progress at Completion; and 

  

	 	(ii)	any data required for compliance with any reporting requirements of any stock exchange or securities or other regulatory authority or under any applicable law, rule or regulation,

  
 which shall each be delivered to the Vendor as
soon as reasonably practicable. 
  

	(H)	The Purchaser agrees that it will, and will procure that each relevant member of the Purchaser’s Group will, after the Completion Date: 

  

	 	(i)	promptly provide the Vendor with such information and access to personnel, premises, chattels and documents belonging to, or under the control of, any members of the
Purchaser’s Group as the Vendor may reasonably consider necessary in connection with the Persona Litigation and any claim under any Liability Insurance Policy in connection with the marketing, sale or use of Persona products; and

  

 54 

	 	(ii)	promptly, and in any event within five Business Days of receipt of any written communication relating to the Persona Litigation, provide the Vendor with a copy of such written
communication. 

  
 The obligations of the Purchaser
and the relevant members of the Purchaser’s Group pursuant to this sub-clause (H) are subject to the Vendor promptly reimbursing the Purchaser and such members of the Purchaser’s Group for the reasonable out-of-pocket expenses
incurred by them in performing such obligations. 
  

	(I)	The Purchaser undertakes that following Completion it shall, and shall procure that each member of the Purchaser’s Group shall (at the cost of the Vendor):

  

	 	(i)	provide to the Vendor, the other members of the Vendor’s Group and their respective professional advisers, during Working Hours and on reasonable advance notice being given,
access (a) to the Transferring Books and Records which are delivered to the Purchaser pursuant to Clause 24 to the extent such relate to the US Retained Litigation (which books and records the Purchaser shall retain, or cause to be retained
by the members of the Purchaser’s Group, until the US Retained Litigation has been finally compromised or settled), and (b) to the employees and counsel of the Purchaser and other members of the Purchaser’s Group for the purposes of the
Vendor’s conduct of the US Retained Litigation; and 

  

	 	(ii)	respond to the reasonable requests of the Vendor to assist in the prosecution or defence of the US Retained Litigation. 

  

	(J)	The Purchaser shall procure that Unipath Limited, or any other relevant Company or member of the Purchaser’s Group, within 20 Business Days of Completion, sells to the Vendor,
or such other member of the Vendor’s Group as the Vendor may designate in writing, at net book value as at the Completion Date the three motor cars owned by Unipath Limited (or such other Company or member of the Purchaser’s Group) and
used by Robert Field, Malcolm Smith and Frans van der Ouderaa as at the date of this Agreement. 

  

	22.	RESTRICTIONS ON THE VENDOR 

  

	(A)	The Vendor undertakes, subject to sub-clause (B), that it shall not, and shall procure that each other member of the Vendor’s Group shall not for as long as it remains
such a member, do any of the following things: 

  

	 	(i)	for a period of three years after the Completion Date, either alone or jointly with any other person, directly or indirectly carry on, be engaged in or control any business or hold
any securities or other participating financial interest (whether in the nature of debt or equity but excluding any interest as a trade creditor arising in the ordinary course of business) in any business which, in any such case, competes with the
Diagnostics Business as carried on at Completion in any part of the world in which it is so carried on (a “Restricted Business”); 

  

 55 

	 	(ii)	for a period of three years after the Completion Date, induce any supplier of the Transferring Business to cease to supply, or to restrict or vary the terms of supply to, the
Transferring Business (which shall not preclude any member of the Vendor’s Group entering into and/or performing agreements or arrangements on ordinary commercial terms in the ordinary course of business (at the relevant time) of that member
where carrying on such business does not amount to a breach of sub-clause (A)(i)); 

  

	 	(iii)	engage any Senior Employee for a period of six months from the Completion Date; 

  

	 	(iv)	without prejudice to sub-clause (A)(iii) and within two years from the Completion Date, solicit or entice away from or persuade to leave the employment of any member of the
Purchaser’s Group any Senior Employee other than:- 

  

	 	(a)	any Senior Employee who (prior to such solicitation, enticement or persuasion) has given or received notice terminating such employment; or 

  

	 	(b)	any Senior Employee who responds (prior to such solicitation, enticement or persuasion) to any public recruitment advertisement (not specifically directed at such Employee) by or on
behalf of any member of the Vendor’s Group; or 

  

	 	(v)	assist any person or attempt to do any of the foregoing things save, in the case of assistance to a third party where the activity of the third party who is so assisted would fall
under the provisions of sub-clause (A)(i) were such third party a member of the Vendor’s Group, where such assistance comprises any member of the Vendor’s Group entering into and/or performing agreements or arrangements on ordinary
commercial terms in the ordinary course of business (at the relevant time) of that member and where carrying on such business does not amount to a breach of sub-clause (A)(i). 

  

	(B)	Nothing in sub-clause (A) shall prevent any member of the Vendor’s Group: 

  

	 	(i)	being the holder of shares, debentures or other securities of a company which is engaged in any Restricted Business (in each case, conferring not more than 5 per cent. (when
aggregated with such holding of any other member of the Vendor’s Group) of the votes which would normally be cast at a general meeting of that company); or 

  

 56 

	 	(ii)	acquiring the whole or any part of a business that includes activities the carrying on of which would otherwise amount to a breach of the undertaking contained in sub-clause
(A)(i) if the turnover of such activities does not amount to more than 25 per cent. of the aggregate turnover of the business concerned; provided that in such case the Vendor shall, or shall cause the relevant member of the Vendor’s
Group, to (a) use its reasonable endeavours to sell such Restricted Business within 12 months of such acquisition, and (b) invite the Purchaser to participate in any sales process organised in relation thereto, subject to the Purchaser having
entered into a confidentiality agreement with, and upon terms reasonably acceptable to, the Vendor or such other member of the Vendor’s Group, on the basis that the Vendor or such other member of the Vendor’s Group shall allow the
Purchaser a period of 15 Business Days prior to the despatch thereof to third parties to review the information memorandum prepared in relation to such sale; or 

  

	 	(iii)	carrying on research and development into markers; or 

  

	 	(iv)	using markers in connection with the manufacture, development, marketing and/or sale of diagnostic products for, or which are sold in conjunction with or as part of, food, skin
products, hair products, oral hygiene products, deodorant products or household care products (excluding for the avoidance of doubt the products referred to in paragraph (i) of the definition of Diagnostics Business set out in Schedule 1
(Interpretation)); or 

  

	 	(v)	for the avoidance of doubt, carrying on research and development which is primarily directed at the manufacture, development, marketing and/or sale of any products other than in
vitro diagnostic products; or 

  

	 	(vi)	holding any securities or having any other ownership or partnership interest in any person (for the avoidance of doubt, not being a member of the Vendor’s Group) the purpose of
which is to make and hold investments in different start-up or other businesses; provided that: 

  

	 	(a)	no member of the Vendor’s Group is able to control or direct such person in any way with respect to the choice or the making of such investments; 

  

	 	(b)	no member of the Vendor’s Group influences any such person to make or hold investments in any Restricted Business; and 

  

	 	(c)	the scope of any marketing or selling memorandum in respect of the raising of capital for any such person to invest shall not be restricted but shall not expressly focus on any
business area which comprises all or any material part of the Restricted Business. 

  

	(C)	 The Vendor (for itself and on behalf of each other member of the Vendor’s Group) acknowledges that each restraint and undertaking contained in this Clause
22 is both fair and reasonable and the Vendor and Purchaser express their intention that the 

  

 57 

	 	 
restraints imposed by this Clause 22 be enforceable to the maximum extent permitted by law. 

  

	(D)	Each of the covenants, obligations and restrictions set out in this Clause 22 will be severable and independent such that if this Clause 22 or any part or provision of
this Clause 22 is held or found to be wholly or partly void, invalid, or otherwise unenforceable then such part or provision will be deemed eliminated to the extent to which it is necessary to make this Clause 22 or that part or
provision enforceable. 

  

	(E)	If a court of competent jurisdiction determines that the duration of any of the restrictions set out in this Clause 22 is unreasonably long but that a shorter period would be
lawful and reasonable, or that the territory is too wide but that a different territory would be lawful and reasonable, then such restrictions shall be read so as to refer to such shorter period and/or different territory, as the court considers
valid in respect of such restrictions. 

  

	23.	PROFIT AND LOSS EQUALISATION 

  

	(A)	The Vendor and the Purchaser shall procure that the Profit and Loss Equalisation Agreement between Unipath Diagnostics GmbH and Deutsche Unilever GmbH dated 12th August, 1992 (the
“Profit and Loss Equalisation Agreement”) is terminated by mutual agreement (Aufhebung) with effect from 31st December, 2001. 

  

	(B)	Immediately following 31st December, 2001 the Purchaser (at the cost and expense of the Vendor) shall procure the preparation of unaudited accounts of Unipath Diagnostics GmbH for
the fiscal year commencing on 1st January, 2001 and ending on 31st December, 2001. The Purchaser shall procure that such accounts are prepared on the same basis, and in accordance with the same accounting policies, as were employed in the
preparation of the Accounts of Unipath Diagnostics GmbH (except that, for the avoidance of doubt, there shall be no requirement for such accounts to be audited) and that such accounts are delivered to the Vendor within 3 months of Completion.

  

	(C)	If the accounts prepared in accordance with sub-clause (B) show Unipath Diagnostics GmbH to have made a loss (which, for this purpose, shall have the same meaning as in
Section 5 of the Profit and Loss Equalisation Agreement) for the period commencing on 1st January, 2001 and ending on 31st December, 2001 then: 

  

	 	(i)	the Vendor shall procure that Deutsche Unilever GmbH pays to Unipath Diagnostics GmbH an amount equal to that loss within 7 Business Days of the receipt by the Vendor of such
accounts; and 

  

	 	(ii)	subject to the payment specified in sub-clause (C)(i) being made, the Purchaser shall pay, or procure the payment of, an amount equal to such loss to the Vendor on behalf of
Deutsche Unilever GmbH within seven Business Days of the payment being made under sub-clause (C)(i). 

  

	(D)	 If the accounts prepared in accordance with sub-clause (B) show Unipath Diagnostics GmbH to have made a profit (which, for this purpose, shall have the same
meaning as 

  

 58 

	 	 
in Section 5 of the Profit and Loss Equalisation Agreement) for the period commencing on 1st January, 2001 and ending on 31st December, 2001 then:

  

	 	(i)	the Purchaser shall procure that Unipath Diagnostics GmbH pays to Deutsche Unilever GmbH an amount equal to that profit within 7 Business Days of the delivery of such accounts to
the Vendor; and 

  

	 	(ii)	subject to the payment specified in sub-clause (D)(i) being made, the Vendor shall pay, or procure the payment of, an amount equal to that profit to such member of the
Purchaser’s Group as the Purchaser shall nominate within 7 Business Days of the payment being made under sub-clause (D)(i). 

  

	(E)    (i)	All payments to be made pursuant to this Clause 23 shall be made free from all withholdings and deductions (save for those required to be made by law).

  

	 	(ii)	If any payment to be made pursuant to this Clause 23 is not made within the time specified for such payment then there shall be added to that payment interest at the Agreed
Rate. 

  

	(F)	The Purchaser shall procure that Unipath Diagnostics GmbH does not declare, make or pay any dividend (including, without limitation, any dividends satisfied in cash or in kind or
including a non-cash asset) after Completion and prior to 1st January, 2002. 

  

	24.	BOOKS AND RECORDS 

  

	(A)	The Vendor shall on Completion deliver to, or hold to the order of, the Purchaser originals of all the Transferring Business Books and Records relating exclusively to the
Transferring Business with the exception of any Transferring Business Books and Records (i) relating to Taxation or (ii) wholly or predominately relating to the US Retained Litigation. 

  

	(B)	For a period of eight years from Completion the Purchaser shall maintain and make available, as reasonably required by the Vendor, the Transferring Business Books and Records which
are delivered to the Purchaser under this Agreement for inspection and copying (at the cost and expense of the Vendor) by representatives of the Vendor and its professional advisers during Working Hours on reasonable advance notice being given and
on the basis that confidentiality is maintained in respect of such Transferring Business Books and Records save as provided in sub-clause 33(B) (Confidentiality). 

  

	(C)	 For a period of eight years from Completion, the Vendor shall, and shall procure that each member of the Vendor’s Group shall, maintain and make available, as
reasonably required by the Purchaser, any Transferring Business Books and Records which are not delivered to, or held to the order of, the Purchaser pursuant to sub-clause (A) (or, if practicable, the relevant parts thereof) and which contain
information which is required by any member of the Purchaser’s Group for the purpose of the Transferring Business and were in the possession of or under the control of the Vendor or any member of the Vendor’s Group immediately prior to
Completion for inspection and copying (at the cost and expense of the Purchaser) by representatives of any member of the Purchaser’s 

  

 59 

	 	 
Group during Working Hours on reasonable advance notice being given (and, if it is not practicable only to make available the relevant parts thereof, on the
basis that confidentiality is maintained in relation to such Transferring Business Books and Records save as provided in sub-clause 33(B) (Confidentiality)). 

  

	(D)	The Purchaser shall procure that if, following Completion, any member of the Vendor’s Group or any of the Companies discovers that any of the Company Books and Records in the
possession of a Company relate exclusively to the Retained Businesses that Company shall promptly deliver to the Vendor the originals (and any copies) of all such Company Books and Records. 

  

	(E)	For a period of eight years from Completion the Purchaser shall procure that the Companies shall maintain and make available to members of the Vendor’s Group any Company Books
and Records relating (but not exclusively relating) to the Retained Businesses (or, if practicable, the relevant parts thereof relating to the Retained Business) and which contain information which is required by any member of the Vendor’s
Group for the purposes of the Retained Businesses and were in the possession of or under the control of any of the Companies immediately prior to Completion for inspection and copying (at the cost and expense of the Vendor) by representatives of any
member of the Vendor’s Group during Working Hours on reasonable advance notice being given (and, if it is not practicable only to make available the relevant parts thereof, on the basis that confidentiality is maintained in relation to such
Company Books and Records save as provided in sub-clause 33(B) (Confidentiality)). 

  

	25.	NO SET OFF 

  

	(A)	Any payment to be made by any party under this Agreement shall be made in full without any set-off, restriction, condition or deduction for or on account of any counterclaim.

  

	(B)	All sums payable by any party under this Agreement shall be paid free and clear of all deductions or withholdings whatsoever, save only as may be required by law.

  

	(C)	If any deductions or withholdings are required by law to be made from any of the sums payable as mentioned in sub-clause (B) (except interest or amounts treated as interest),
the paying party shall be obliged to pay to the recipient such sum as will, after such deduction or withholding has been made, leave the recipient with the same amount as it would have been entitled to receive in the absence of any such requirement
to make such deduction or withholding. 

  

	26.	EFFECT OF COMPLETION 

  
 Save as otherwise provided herein or therein, any obligations and undertakings contained in this Agreement or in any other document referred to herein
which are capable of being performed after but which have not been performed at or before Completion and all Warranties shall (subject to Schedule 7 (Limitations on Liability)) remain in full force and effect notwithstanding Completion.

  

 60 

	27.	REMEDIES AND WAIVERS 

  

	(A)	No delay or omission on the part of any party to this Agreement in exercising any right, power or remedy provided under this Agreement or any other documents referred to in it shall
impair such right, power or remedy or operate as a waiver thereof except where expressly stated herein or therein. 

  

	(B)	The single or partial exercise of any right, power or remedy provided under this Agreement shall not preclude any other or further exercise thereof or the exercise of any other
right, power or remedy except where expressly stated herein. 

  

	28.	NO ASSIGNMENT 

  

	(A)	Neither the obligations nor the benefits under this Agreement shall be assignable except as set out in sub-clause (B) and as follows in this sub-clause (A). The
Purchaser or a Permitted Assignee (as defined below) may, upon giving written notice to the Vendor, assign the benefit of this Agreement in whole or in part (subject, for the avoidance of doubt, to all limitations contained herein including, without
limitation, limitations on claims under the Warranties) to one or more members of the Purchaser’s Group (a “Purchaser Permitted Assignee”) subject to the condition (a “Departure-from-Group
Condition”) that if such Permitted Assignee shall subsequently cease to be a member of the Purchaser’s Group, the Purchaser shall procure that prior to its ceasing to be a member of the Purchaser’s Group the Permitted Assignee
shall assign so much of the benefit of this Agreement as has been assigned to it to the Purchaser or (upon giving further written notice to the Vendor) to another member of the Purchaser’s Group. Subject to sub-clause (B) any purported
assignment in contravention of this sub-clause 28(A) shall be void. The Vendor may assign the benefit of this Agreement in whole or in part (subject, for the avoidance of doubt, to all limitations contained herein) to one or more other
members of the Vendor’s Group (a “Vendor Permitted Assignee”) from time to time subject to a Departure-from-Group Condition by reference to the Vendor’s Group. 

  

	(B)	The Purchaser shall be able, upon giving prior written notice to the Vendor, to assign all, but not part of, the benefit (but not the burden) of this Agreement (subject, for the
avoidance of doubt, to all limitations contained herein including, without limitation, limitations on claims under the Warranties) by way of security only to The Royal Bank of Scotland PLC, as facility agent and security trustee for the financial
institutions providing debt finance to the Purchaser’s Group for the purposes of completing the transactions contemplated by this Agreement (the “Financiers”), and the terms of such assignment shall provide that:

  

	 	(i)	such assignee may not assign the benefit of this Agreement to any other person except (i) by way of re-assignment to the Purchaser; or (ii) following enforcement of security by The
Royal Bank of Scotland PLC to any other person where it has received the prior written consent of the Vendor (such consent not to be unreasonably withheld or delayed); 

  

 61 

	 	(ii)	on the debt finance referred to above being repaid in full, the Purchaser and The Royal Bank of Scotland PLC shall procure that the security is released and that the benefit of this
Agreement is re-assigned to the Purchaser; and 

  

	 	(iii)	the liabilities of the Vendor and all other members of the Vendor’s Group under this Agreement shall be no greater than such liabilities would have been had the assignment (or
any subsequent assignment or re-assignment) not occurred. 

  

	(C)	The parties hereby agree that: 

  

	 	(i)	where the Purchaser or a Purchaser Permitted Assignee assigns the benefit of this Agreement in whole or in part to any other person the liabilities of the Vendor and all other
members of the Vendor’s Group under this Agreement to the Purchaser’s Group shall be no greater than such liabilities would have been had the assignment not occurred; and 

  

	 	(ii)	where the Vendor or a Vendor Permitted Assignee assigns the benefit of this Agreement in whole or in part to any other person the liabilities of the Purchaser and all other members
of the Purchaser’s Group under this Agreement to the Vendor’s Group shall be no greater than such liabilities would have been had the assignment not occurred. 

  

	29.	FURTHER ASSURANCE 

  

	(A)	Without prejudice to any restriction or limitation set out in this Agreement on the extent of any party’s obligations under this Agreement and except in relation to the
Business IPR and the Domain Names, each of the parties shall, from time to time and at its own cost and expense, do or procure the doing of all such acts and/or execute or procure the execution of all such documents in a form reasonably satisfactory
to the other party as may be reasonably necessary to transfer the Shares, the Bedford Property, the US Business Assets, the IP Licences and/or the Monoclonal Assets to the Purchaser or the relevant Designated Purchaser on the terms of this Agreement
and the Specified Agreements and otherwise to give any party the full benefit of this Agreement. 

  

	(B)	The Vendor undertakes, for a period of two years after Completion and at the request of the relevant Designated Purchaser (and at its own cost and expense), and thereafter as
reasonably requested by the Purchaser (at the Purchaser’s cost and expense), to execute or procure the execution of all such documents as may reasonably be necessary or desirable to secure the vesting in the relevant Designated Purchaser of the
Business IPR and the Domain Names provided however that the relevant Designated Purchaser undertakes with the Vendor that it will be responsible for preparing all such documents and provided that the relevant Designated Purchaser shall be
responsible for all costs and expenses of effecting and recording the Intellectual Property Assignments at the relevant Patent and Trade Mark offices. 

  

	(C)	 In relation to each Company, the Vendor has procured, or will as part of Completion procure, the convening of all meetings, the giving of all waivers and consents
and the 

  

 62 

	 	 
passing of all resolutions necessary to give effect to the transfer of the Shares in that Company. 

  

	30.	ENTIRE AGREEMENT 

  

	(A)	This Agreement, the Disclosure Letter and the Specified Agreements constitute the whole and only agreement between the parties relating to the sale and purchase of the Shares, the
Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets and, except to the extent expressly repeated in this Agreement, the Disclosure Letter or any of the Specified Agreements, any prior drafts, agreements, undertakings,
representations, warranties and arrangements of any nature whatsoever, whether or not in writing, relating thereto are superseded and extinguished. 

  

	(B)	The Purchaser acknowledges and agrees (for itself and on behalf of each other member of the Purchaser’s Group) with the Vendor (on behalf of itself and each other member of the
Vendor’s Group) that: 

  

	 	(i)	it does not rely on and has not been induced to enter into this Agreement, the Disclosure Letter or the Specified Agreements on the basis of any Assurance (express or implied) made
or given by or on behalf of the Vendor or any other member of the Vendor’s Group or any of their respective agents, directors, officers, employees or advisers other than those expressly set out in this Agreement, the Disclosure Letter or any of
the Specified Agreements or, to the extent that it has been, it has (in the absence of fraud) no rights or remedies in relation thereto and shall make no claim in relation thereto or against any such person and, without prejudice to the generality
of the foregoing (including, without limitation, the Warranties), it has not relied upon, and will have no action or remedy as a result of, the Information Memorandum except to the extent that any statement in the Information Memorandum is set out
as an Assurance in this Agreement, the Disclosure Letter or any of the Specified Agreements; 

  

	 	(ii)	any warranty or other rights which may be implied by law in any jurisdiction in relation to the sale of the Shares, the Bedford Property, the US Business Assets, the IP Assets or
the Monoclonal Assets in such jurisdiction (except to the extent specifically incorporated into this Agreement, the Disclosure Letter or any of the Specified Agreements) shall be excluded or, if incapable of exclusion, irrevocably waived; and

  

	 	(iii)	if any provision of this Agreement conflicts with any provision of any of the Transfer Documents, the provisions of this Agreement shall prevail. 

  

	(C)	 The Vendor acknowledges and agrees (for itself and on behalf of each other member of the Vendor’s Group) with the Purchaser (on behalf of itself and each other
member of the Purchaser’s Group) that it does not rely on and has not been induced to enter into this Agreement, the Disclosure Letter or any of the Specified Agreements on the basis of any Assurance (express or implied) made or given by or on
behalf of the Purchaser or any other member of the Purchaser’s Group or any of their respective agents, directors, officers, employees or advisers other than those expressly set out in this Agreement, 

  

 63 

	 	 
the Disclosure Letter or any of the Specified Agreements or, to the extent that it has been, it has (in the absence of fraud) no rights or remedies in
relation thereto and shall make no claim in relation thereto or against any such person. 

  

	(D)	This Agreement may only be varied by a document signed by each of the parties and expressed to be a variation to this Agreement. 

  

	(E)	The provisions of sub-clause 21(A) and the foregoing provisions of this Clause 30 shall be without prejudice to any rights which the Purchaser or any member of the
Purchaser’s Group may have under any arrangements which the Purchaser or any member of the Purchaser’s Group has entered, or may enter, into with the Vendor’s Accountants with respect to the PwC Due Diligence Report.

  

	31.	NOTICES 

  

	(A)	Any notice or other communication given or made under or in connection with the matters contemplated by this Agreement shall be in writing. Notices and communications transmitted by
e-mail shall not be considered to be in writing for the purposes of this Clause 31. 

  

	(B)	Any such notice or other communication shall be addressed as provided in sub-clause (C) and, if so addressed, shall be deemed to have been duly given or made as follows:

  

	 	(i)	if sent by personal delivery, upon delivery at the address of the relevant party; 

  

	 	(ii)	if sent by first-class post, two Business Days after the date of posting; 

  

	 	(iii)	if sent by airmail, five Business Days after the date of posting; 

  

	 	(iv)	if sent by facsimile, when received; 

  
 PROVIDED THAT if, in accordance with the above provisions, any such notice or other communication would otherwise be deemed to be given or made outside
Working Hours, such notice or other communication shall be deemed to be given or made at the start of Working Hours on the next Business Day. 
  

 64 

	(C)	The relevant addressee, address and facsimile number of each party for the purposes of this Agreement, subject to sub-clause (D), are: 

  

							
	 Name of party

	  	 Address

	  	Facsimile No.

	 	  
 For the attention of

	 Unilever U.K.
 Holdings Limited
 (Vendor)
	  	 Unilever House,
 Blackfriars,
 London
 EC4P 4BQ,
 United Kingdom
	  	(44) 207 822 6108	 	the Company Secretary
				
	 Inverness Medical
 Innovations, Inc.
 (Purchaser)
	  	 Suite 200,
 51 Sawyer Road,
 Waltham,
 Massachusetts,
 02453,
 United States of America
	  	001 781 647 3939	 	the General Counsel

  

	(D)	A party may notify the other party to this Agreement of a change to its name, relevant addressee, address or facsimile number for the purposes of sub-clause (C) PROVIDED THAT
such notification shall only be effective on: 

  

	 	(i)	the date specified in the notification as the date on which the change is to take place; or 

  

	 	(ii)	if no date is specified or the date specified is less than five Business Days after the date on which notice is given, the date falling five Business Days after notice of any such
change has been given. 

  

	(E)	For the avoidance of doubt, the parties agree that the provisions of this Clause 31 shall not apply in relation to the service of Service Documents. 

 

	32.	ANNOUNCEMENTS 

  

	(A)	Subject to sub-clause (B), no announcement concerning the sale or purchase of the Shares, the Bedford Property, the US Business Assets, the IP Assets and/or the Monoclonal
Assets or any ancillary matter (other than the Press Announcements), shall be made by any party without the prior written approval of the other, such approval not to be unreasonably withheld or delayed. 

  

	(B)	Any party may make an announcement concerning the sale or purchase of the Shares, the Bedford Property, the US Business Assets, the IP Assets and/or the Monoclonal Assets or any
ancillary matter if required by: 

  

	 	(i)	the law of any relevant jurisdiction; 

  

	 	(ii)	 any securities exchange or regulatory or governmental body to which any party or any holding company of it is subject or submits, wherever situated (including,
without limitation, the UK Listing Authority, the London Stock Exchange PLC, the American Stock Exchange, the Panel on Take-Overs and Mergers or the 

  

 65 

	 	 
Securities and Exchange Commission) whether or not the requirement has the force of law, 

  
 in which case the party concerned shall take all such steps as may be
reasonable and practicable in the circumstances to agree the contents of such announcement with the other party before making such announcement. 
  

	(C)	The restrictions contained in this Clause 32 shall continue to apply notwithstanding Completion without limit in time. 

  

	33.	CONFIDENTIALITY 

  

	(A)	Without prejudice to sub-clause 19(L) (Vendor’s Warranties and Undertakings and Purchaser’s Remedies) and sub-clause 21(B) (Purchaser’s Undertakings)
but subject to sub-clause (B), the Vendor (for itself and on behalf of each other member of the Vendor’s Group) and the Purchaser (for itself and on behalf of each other member of the Purchaser’s Group) undertake to treat as
strictly confidential: 

  

	 	(i)	the provisions or the subject matter of this Agreement or any document referred to herein; and 

  

	 	(ii)	the negotiations relating to this Agreement or any document referred to herein. 

  

	(B)	Any person subject to this Clause 33 may disclose information which would otherwise be confidential if and to the extent: 

  

	 	(i)	required by the law of any relevant jurisdiction or for the purpose of any judicial proceedings; 

  

	 	(ii)	required by any securities exchange or regulatory or governmental body to which such person or any holding company of it is subject or submits, wherever situated (including, without
limitation, the UK Listing Authority, the London Stock Exchange PLC, the American Stock Exchange, the Panel on Takeovers and Mergers or the Securities and Exchange Commission) whether or not the requirement for information has the force of law;
provided that in the case of any requirement to file a copy of this Agreement or any of the Specified Agreements with any such authority, exchange, commission or other body, the party to this Agreement which is under such filing obligation
shall use its reasonable endeavours to request that as many parts of this Agreement and the Specified Agreements as such authority, exchange, commission or other body will permit receive confidential treatment with respect to such filing;

  

	 	(iii)	that the information is disclosed on a strictly confidential basis to the professional advisers, auditors and bankers of such person; 

  

	 	(iv)	 that the relevant party (being the Vendor in the case of disclosure by a member of the Purchaser’s Group or the Purchaser in the case of disclosure by a

  

 66 

	 	 
member of the Vendor’s Group) has given prior written approval to the disclosure; 

  

	 	(v)	it is disclosure to Employees, or to those of the Dutch Sales Staff whose contracts of employment transfer to the relevant Designated Purchaser pursuant to the transactions
contemplated by this Agreement, on a confidential basis of information contained within Clause 13 (Employees), Clause 16 (Dutch Sales Staff), Schedule 8 (Pensions) or the Employee Disclosures for the purpose of clarifying their
employment terms or is disclosure to Employees or such Dutch Sales Staff of other information where such disclosure is necessary for the operation of the Transferring Business and is on a confidential and reasonable need to know basis;

  

	 	(vi)	required to enable any member of the Vendor’s Group or the Purchaser’s Group, as the case may be, to enforce its rights under this Agreement or any document referred to
herein or to vest the full benefit of this Agreement or such other document in that member; or 

  

	 	(vii)	where such person is a member of the Purchaser’s Group, such disclosure is made on a confidential and reasonable need to know basis and is required in connection with the
conduct of the business of the Purchaser’s Group; 

  
 PROVIDED THAT any such information disclosed pursuant to paragraphs (i) or (ii) (other than any disclosure to a Tax Authority) shall be disclosed only after notice to the relevant party (being the Vendor in the case of
disclosure by a member of the Purchaser’s Group or the Purchaser in the case of disclosure by a member of the Vendor’s Group). 
  

	(C)	The restrictions contained in this Clause 33 shall continue to apply after the termination of this Agreement without limit in time. 

  

	(D)	This Clause 33 shall be without prejudice to Clause 32 (Announcements). 

  

	(E)	With the exception of the obligation of the Purchaser set out in paragraph 12 of such agreement (to the extent that such obligation relates to directors, officers or employees who
are not engaged in the Transferring Business), the Confidentiality Agreement (and all rights and obligations under it) is hereby terminated with effect from the date of this Agreement. 

  

	(F)	 If, at any time after the Completion Date, the Purchaser notifies the Vendor in writing, (setting out in all reasonable detail the circumstances thereof, including
the name of the relevant third party) that it suspects that a third party attended the Data Room and is misusing any of the confidential information relating to the Transferring Business provided to it by or on behalf of any member of the
Vendor’s Group or the Companies prior to Completion in connection with the proposed sale of the Transferring Business, then, to the extent the Vendor, or any other member of the Vendor’s Group, has a right of action against such third
party under any of the Auction Confidentiality Agreements 

  

 67 

	 	 
(save where such right of action has no reasonable likelihood of success), the Vendor shall, or shall procure that such member of the Vendor’s Group
shall, either: 

  

	 	(i)	take all reasonable steps, at the Purchaser’s expense, to enforce its rights under the relevant Auction Confidentiality Agreement against such third party in order to prevent
and/or stop the use and/or disclosure of such confidential information by the third party; or 

  

	 	(ii)	transfer and assign the benefit of the relevant Auction Confidentiality Agreement to the Purchaser and, if requested by the Purchaser, and at the Purchaser’s expense, use its
reasonable endeavours to assist the Purchaser in the enforcement thereof. 

  

	34.	COSTS AND EXPENSES 

  

	(A)	Save as otherwise stated in any other provision of this Agreement, each party shall pay its own costs and expenses in relation to the negotiations leading up to the sale and
purchase of the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets and to the preparation, execution and carrying into effect of this Agreement and all other documents referred to in it.

  

	(B)	Without prejudice to sub-clause (A): 

  

	 	(i)	all stamp, transfer, registration, sales (including state and local sales Taxes) and other similar Taxes, duties and charges and all notarial fees (if any) (“Transfer
Taxes”) payable in connection with the sale, transfer or purchase of the Shares in Unipath Limited, Unipath B.V. and Unipath Diagnostics GmbH and the Bedford Property under or pursuant to this Agreement shall be paid by the Purchaser;
and 

  

	 	(ii)	all Transfer Taxes payable in connection with the sale, transfer or purchase of the Shares in Unipath Scandinavia A.B., the US Business Assets, the IP Assets and the Monoclonal
Assets under or pursuant to this Agreement shall be for the account of the Purchaser. 

  

	35.	COUNTERPARTS 

  

	(A)	This Agreement may be executed in any number of counterparts, and by the parties on separate counterparts, but shall not be effective until each party has executed at least one
counterpart. 

  

	(B)	Each counterpart shall constitute an original of this Agreement, but all the counterparts shall together constitute but one and the same instrument. 

  

 68 

	36.	INVALIDITY 

  
 If at any time any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, that
shall not affect or impair:- 
  

	 	(i)	the legality, validity or enforceability in that jurisdiction of any other provision of this Agreement; or 

  

	 	(ii)	the legality, validity or enforceability under the law of any other jurisdiction of that or any other provision of this Agreement. 

  

	37.	CAPACITY OF THE PARTIES AND GROUP COMPANY OBLIGATIONS 

  

	(A)	The undertakings given by the Purchaser to, and agreements made by the Purchaser with, the Vendor in this Agreement are given and made to and with the Vendor for itself and as
trustee for the Share Sellers, US Business Seller, the IP Assets Sellers and/or the Monoclonal Assets Seller (as appropriate in each case). 

  

	(B)	The undertakings given by the Vendor to, and agreements made by the Vendor with, the Purchaser in this Agreement are given and made to and with the Purchaser for itself and as
trustee for the relevant Designated Purchaser or Purchasers (as appropriate in each case). 

  

	(C)	The Purchaser shall procure that any obligation which is expressed under this Agreement to be an obligation of any member of the Purchaser’s Group (including, to the extent
expressly set out in this Agreement, a member of the Purchaser’s Group who ceases to be such a member) or of any Designated Purchaser (including any obligation expressed to be given, undertaken or assumed by the Purchaser on behalf of one or
more such persons) shall be performed and not breached and, in the event of breach or non-performance of any such obligation, the Vendor shall be entitled, subject to any express applicable limitations set out in this Agreement, to bring proceedings
and recover in full against the Purchaser without being obliged to do so first against such other persons. 

  

	(D)	The Vendor shall procure that any obligation which is expressed under this Agreement to be an obligation of any member of the Vendor’s Group (including, to the extent expressly
set out in this Agreement, a member of the Vendor’s Group who ceases to be such a member) or of the Share Sellers, the US Business Seller, the IP Assets Sellers, the Monoclonal Assets Seller or any of them (including any obligation expressed to
be given, undertaken or assumed by the Vendor on behalf of one or more such persons) shall be performed and not breached and, in the event of breach or non-performance of any such obligation, the Purchaser shall be entitled, subject to the
provisions of Schedule 7 (Limitations on Liability) (where applicable) and to any other express applicable limitations set out in this Agreement, to bring proceedings and recover in full against the Vendor without being obliged to do so first
against such other persons. 

  

 69 

	(E)	In sub-clauses 37(C) and 37(D), any reference to any obligation shall include, without limitation, the giving of any warranty or undertaking under this Agreement.

  

	38.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 

  

	(A)	The parties to this Agreement do not intend that any term of this Agreement should be enforceable, by virtue of the Contracts (Rights of Third Parties) Act 1999, by any person who
is not a party to this Agreement. 

  

	(B)	Notwithstanding sub-clause (A), the undertakings given by the Purchaser in, and the agreement of the Purchaser to, Clause 13 (Employees), paragraphs 4 and 5 of Part A
of Schedule 8 (Pensions), paragraph 2 of Part B of Schedule 8 (Pensions) and Annex B of Part A of Schedule 8 (Pensions) are given to and made with the Vendor as trustee for each of the Employees and, if he becomes employed
within six months of Completion by a member of the Purchaser’s Group, each member of the Dutch Sales Staff. 

  

	39.	GOVERNING LAW 

  
 This Agreement shall be governed by, and construed in accordance with, English law. 
  

	40.	JURISDICTION 

  

	(A)	Each of the parties to this Agreement irrevocably agrees that the courts of England are to have sole jurisdiction to settle any disputes which may arise out of or in connection with
this Agreement and that accordingly any Proceedings shall be brought in such courts. 

  

	(B)	Each party irrevocably waives (and irrevocably agrees not to raise) any objection which it may have now or hereafter to the laying of the venue of any Proceedings in any such court
as is referred to in sub-clause (A) and any claim of forum non conveniens and further irrevocably agrees that a judgment in any Proceedings brought in any court referred to in sub-clause (A) shall (subject to rights of appeal)
be conclusive and binding upon such party and may be enforced in the courts of any other jurisdiction. 

  

	41.	AGENT FOR SERVICE OF PROCESS 

  

	(A)	The Purchaser irrevocably appoints Unipath Limited of Priory Business Park, Bedford MK44 3UP (or such other address as may be notified to the Vendor) to be its agent for the receipt
of service of process in England. It agrees that any Service Document may be effectively served on it in connection with Proceedings in England and Wales by service on its agent. 

  

	(B)	If the agent at any time ceases for any reason to act as such, the Purchaser shall appoint a replacement agent having an address for service in England or Wales and shall notify the
Vendor of the name and address of the replacement agent. Failing such appointment and notification, the Vendor shall be entitled by notice to the Purchaser (notifying the name and address of the replacement agent) to appoint a replacement agent to
act on the Purchaser’s behalf. 

  

 70 

	(C)	A copy of any Service Document served on an agent shall be sent by post to the Purchaser. Failure or delay in so doing shall not prejudice the effectiveness of service of the
Service Document. 

  

	(D)	“Service Document” means a document relating to or in connection with any Proceedings. 

  

	42.	LANGUAGE 

  
 Each notice, demand, request, statement, instrument, certificate, or other communication given, delivered or made by any party to any other party under or
in connection with this Agreement shall be in English. 
  
 IN WITNESS whereof the
parties have entered into this Agreement the day and year first before written. 
  

 71 

 SCHEDULE 1 
 (Interpretation) 
  

	(A)	In this Agreement and the Schedules to it, unless otherwise specified: 

  

			
	“Accounts”	  	 means:
  
 (i)     in relation to all Companies other than Unipath B.V., the non-consolidated audited accounts
comprising a balance sheet, profit and loss account and notes of each such Company as at and for the year ended on the Accounts Date; and

		
	 	  	 (ii)    in relation to Unipath B.V., the non-consolidated unaudited accounts of that Company as at and for the year ended
on the Accounts Date, which accounts were compiled for the purpose of the preparation of the consolidated accounts of the Vendor’s Group,

		
	 	  	copies of all of which are set out in Attachment 3;
		
	“Accounting Manual Extracts”	  	means the extracts from the Unilever Accounting Manual set out in Attachment 8;
		
	“Accounts Date”	  	means 31st December, 2000;
		
	“Adjusted Cash Consideration”	  	has the meaning given in sub-clause 5(A) (Working Capital and Variable Intra-Group Debt Adjustments);
		
	“Agreed Form”	  	means, in relation to any document, such document in the form initialled for the purposes of identification only by or on behalf of the Purchaser and the Vendor (as amended by agreement or
pursuant to the terms of this Agreement);
		
	 “Agreed Rate”
	  	means 2 per cent. above the base rate of National Westminster Bank PLC from time to time;
		
	“Antibody Patent Licence”	  	means the licence and related side letter, in the Agreed Form, relating to certain technology to be entered into by Unilever PLC, Unilever N.V. and the Designated Purchaser of the IP Assets at
Completion;
		
	“Assumed Liabilities”	  	has the meaning given in sub-clause 10(B) (Assumed Liabilities and Retained Liabilities);
		
	“Assumed Liabilities Indemnity”	  	has the meaning given in sub-clause 10(G) (Assumed Liabilities and Retained Liabilities);

  

 72 

			
	“Assurance”	  	means any warranty, representation, assurance, covenant, agreement, undertaking, indemnity, guarantee or commitment of any nature whatsoever;
		
	“Auction Confidentiality Agreements”	  	means the four confidentiality agreements entered into in connection with the proposed sale of the Transferring Business between Unilever PLC and all those third parties (other than the
Purchaser and other members of the Purchaser’s Group) who have been given access to the Data Room prior to the date of this Agreement, each in substantially the same form, and dated on or around the same date, as the Confidentiality
Agreement;
		
	“BD Licence”	  	means the licence agreement dated 20th November, 2001 between Unilever PLC, Unilever N.V. and Becton Dickinson, a copy of which is attached to the Disclosure Letter, pursuant to which Becton
Dickinson has been granted a non-exclusive licence of patents owned by Unilever PLC and Unilever N.V.;
		
	“Bedford Property”	  	means the leasehold property at Priory Business Park, Bedford, details of which are set out in Part A of Schedule 9 (Properties);
		
	“Bedford Property Transfer”	  	means the transfer of the Bedford Property in the Agreed Form prepared in accordance with the provisions of Part C of Schedule 9 (Properties);
		
	“Benchmark Statement”	  	has the meaning given in sub-clause 6(A) (Completion Accounts and Variable Intra-Group Debt Statement);
		
	“Biosensors Patents”	  	means US patent number 5,141,868 and its equivalents in Australia, Canada, Japan and Europe and patents based on or claiming priority from any of those patent applications and patents, as well
as any substitution, division, continuation, continuation-in-past, re-examination or re-issue thereof;
		
	“Business Day”	  	means a day (other than a Saturday or a Sunday) on which banks generally are open in London for normal business (other than solely for settlement and trading in euros);
		
	“Business IPR”	  	means (i) the Intellectual Property licensed pursuant to the IP Licences listed in Attachment 15; (ii) any or all of the Intellectual Property owned by a member of the Vendor’s Group which
is used exclusively in the Transferring Business as at Completion; and (iii) any or all of the Intellectual Property owned by a member of the Vendor’s Group which has been used in the Transferring Business but has never been used in any other
business carried on by members of the Vendor’s Group. The Business IPR includes, without limitation, those patents, patent applications, trade marks and trade mark applications listed in the Disclosure Letter;

  

 73 

			
	“Captive Insurer”	  	means Verzekeringsmaatschappij Palma N.V., an insurance company which is a member of the Vendor’s Group;
		
	“Cash Consideration”	  	means the aggregate cash consideration payable for the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets as set out in sub-clause 3(A) (Cash
Consideration), as such consideration may be adjusted pursuant to the other provisions of this Agreement;
		
	“Code”	  	means the US Internal Revenue Code of 1986, as amended;
		
	“Companies”	  	means Unipath Limited, Unipath Management Limited, Unipath Diagnostics GmbH, Unipath Scandinavia A.B. and Unipath B.V.; and “Company” shall be construed
accordingly;
		
	“Company Books and Records”	  	means all books and records of the Companies containing information relating to the Retained Businesses or on which any information relating to the Retained Businesses is recorded including,
without limitation, all documents and other material (including, without limitation, all forms of computer or machine readable material);
		
	“Company IPR”	  	means Intellectual Property owned by any of the Companies;
		
	“Completion”	  	means completion of the sale and purchase of the Shares, the Bedford Property, the US Business Assets, the IP Assets and the Monoclonal Assets;
		
	“Completion Accounts”	  	means the aggregated working capital statement of the Companies and the US Business together with an individual working capital statement for each of the Companies and the US Business, in each
case as at the Completion Date, all of which are to be prepared in accordance with Clause 6 (Completion Accounts and Variable Intra-Group Debt Statement) and Schedule 10 (Completion Accounts and Variable Intra-Group Debt
Statement);
		
	“Completion Date”	  	means the date of this Agreement;
		
	“Confidentiality Agreement”	  	means the confidentiality agreement entered into between Unilever PLC and the Purchaser dated 21st August, 2001 (as amended);
		
	“Current Year Tax Liability”	  	has the meaning given in the Tax Covenant;

  

 74 

			
	“Data Room”	  	means those documents, including, without limitation, copies of documents, made available to the Purchaser prior to the date of this Agreement and listed in the Data Room Index;
		
	“Data Room Index”	  	has the meaning given in the Disclosure Letter;
		
	“Deed of Undertaking”	  	has the meaning given in sub-clause 12(D) (Intra-Group Guarantees and Other Arrangements);
		
	“Default Rate”	  	means 4 per cent. above the base rate of National Westminster Bank PLC from time to time;
		
	“Defined Field”	  	 means:
  
 (i)      the manufacture, distribution and sale of pregnancy testing kits, ovulation and fertility
monitoring systems, aids to contraception and other women’s reproductive health diagnostic products;
  
 (ii)     the manufacture, distribution and sale of certain in vitro diagnostic products; and

 
 (iii)   the carrying out of
research or development work in relation to products of the type referred to in (i) or (ii) above;
  
 in each case only as carried on at the date of this Agreement by the Companies and, in relation to the US Business, the US Business Seller;

		
	“Departure-from-Group-Condition”	  	has the meaning given in sub-clause 28(A) (No Assignment);
		
	“Designated Purchasers”	  	means the Purchaser and such other members of the Purchaser’s Group as may be nominated by the Purchaser to purchase any of the Shares, the Bedford Property, the US Business Assets, the IP
Assets and the Monoclonal Assets and “Designated Purchaser” means any one of them;
		
	“Diagnostics Business”	  	means the business of:
		
	 	  	 (i)      the manufacture, distribution and sale of pregnancy testing kits, ovulation and fertility monitoring
systems, aids to contraception and other women’s reproductive health diagnostic products;

		
	 	  	 (ii)     the manufacture, distribution and sale of certain in vitro diagnostic products;

  

 75 

			
	 	  	 (iii)   the carrying out of research and development work in relation to products of the type referred to in paragraphs
(i) and (ii); and

		
	 	  	 (iv)    the licensing of Intellectual Property for (i), (ii) or (iii)
above,
  
 in each case only as carried on at the date of this Agreement by (i)
the Companies (including through the occupation or use of the Bedford Property, the IP Assets and the Monoclonal Assets), and (ii) in relation to the US Business, by the US Business Seller;

		
	“Disclosure Bundle”	  	has the meaning given in the Disclosure Letter;
		
	“Disclosure Letter”	  	means the disclosure letter of the same date as this Agreement written by the Vendor to the Purchaser;
		
	“Dispute Notice”	  	has the meaning given in sub-clause 6(B) (Completion Accounts and Variable Intra-Group Debt Statement);
		
	“Domain Names”	  	means the internet domain names listed in Schedule 14 (Domain Names);
		
	“Dutch Sales Staff”	  	means Paul Heijstee, Nelleke Broekema, Joop Bergsma and Saskia van der Heijden each of whom is employed by Lever Fabergé Nederland B.V. (a member of the Vendor’s Group
incorporated in the Netherlands) and each of whom provides sales services to Unipath Limited pursuant to the Dutch Sales Representation Agreement;
		
	“Dutch Sales Representation Agreement”	  	means the Sales Representation Agreement with an effective date of 2nd July, 2001 between Unipath Limited and Lever Fabergé Nederland B.V.;
		
	“Employees”	  	means the French Employees, the German Employees, the Scandinavian Employees, the UK Employees and the US Employees;
		
	“Employee Disclosures”	  	means the disclosures relating to the Employees set out in paragraph 24 of the Disclosure Letter;
		
	“Environment”	  	has the meaning given in the Environmental Warranties;
		
	“Environmental Laws”	  	has the meaning given in the Environmental Warranties;

  

 76 

			
	“Environmental Matters”	  	has the meaning given in the Environmental Warranties;
		
	“Environmental Permits”	  	has the meaning given in the Environmental Warranties;
		
	“Environmental Warranties”	  	means the Warranties set out in paragraph 25 of Schedule 6 (Warranties);
		
	“Fixed Asset Register”	  	means the fixed asset register set out at tab 5 of the Disclosure Bundle which lists, inter alia, as at 1st December, 2001 those US Business Assets which are Material Fixed Assets and those
assets of the Companies which are Material Fixed Assets;
		
	“Fixed Intra-Group Debt Amounts”	  	means certain amounts in the nature of indebtedness owing by the Companies to members of the Vendor’s Group as at the date of this Agreement, details of which are set out
in Schedule 13 (Fixed Intra-Group Debt Amounts);
		
	“French Employees”	  	means those individuals whose names are set out in Part A of Schedule 11 (Employees) being the persons who are employed by Elida Fabergé SA and are engaged in the Transferring
Business;
		
	“Generic Claims”	  	means those claims notified or threatened against members of the Vendor’s Group or any of the Companies prior to the date hereof in respect of the marketing, sale and use of Persona
products in which it is asserted that the Persona product is defective, or that the Persona product is not suitable for its intended purpose, by virtue of any failure to warn an intended user of the Persona product that the Persona product is not
94% reliable when used in accordance with the instructions set out therewith and/or that the figure of 94% reliability should not have been used in respect of the Persona product, being the claims referred to as a single occurrence in the letter
from the Captive Insurer to Richard Hazell of Unilever PLC dated 18th December, 2001 included at tab 15 of the Disclosure Bundle;
		
	“German Employees”	  	means those individuals whose names are set out in Part B of Schedule 11 (Employees) being the persons who are employed by Unipath Diagnostics GmbH;
		
	“Hamers Agreement”	  	means the agreement dated 17th March, 1997 between Unilever Nederland BV and the Vrije Universiteit Brussel, a copy of which is attached to the Disclosure Letter;
		
	“Hazardous Substances”	  	has the meaning given in the Environmental Warranties;
		
	“Immovable Property”	  	means freehold and leasehold land and buildings, fixtures, or other immovable property;

  

 77 

			
	“Indemnified Losses”	  	has the meaning given in sub-clause 18(A) (Reorganisation Indemnity);
		
	“Indirect Taxation”	  	means those taxes listed in Attachment 4;
		
	“Information Memorandum”	  	means the information memorandum dated August, 2001 and prepared by Deutsche Bank AG on behalf of the Vendor’s Group in connection with the proposed sale of the Transferring
Business;
		
	“Intellectual Property”	  	means patents, trade marks, service marks, trade or business names, rights in designs, copyrights (including, without limitation, rights in computer software), rights in databases and topography
rights (whether or not any of those is registered and including, without limitation, applications and rights to apply for registration of any such thing) and all rights or forms of protection of a similar nature or having equivalent or similar
effect to any of these which may subsist anywhere in the world;
		
	“Intellectual Property Assignments”	  	means the assignments of registered Business IPR (and applications therefor) in the Agreed Form to be entered into at Completion between the IP Assets Sellers and the Designated Purchaser of the
IP Assets;
		
	“Intra-Group Trading and Services Amount”	  	 means:
  
 (i)      any amount owed by or to any member of the Vendor’s Group to or by any of the
Companies as at Completion; and
  
 (ii)     any amount owed by one member of the Vendor’s Group to another member of the Vendor’s Group in respect of the US Business as at Completion,

		
	 	  	in either case, in the ordinary course of the Transferring Business (including, without limitation, trade payables and receivables, amounts owed in respect of salaries or other employee
benefits, amounts in respect of VAT, insurance (including, without limitation, health and motor insurance), pension or retirement benefit payments, management training and car rental payments paid or management services provided by or to any member
of the Vendor’s Group);
		
	“IP Assets”	  	means the Business IPR, the Domain Names and the IP Licences;

  

 78 

			
	“IP Assets Sellers”	  	means Conopco, Inc., Hindustan Lever Limited, Unilever N.V., Unilever PLC and Unilever Patent Holdings B.V., each of which is a member of the Vendor’s Group;
		
	“IP Licences”	  	 means:
  
 (i)      the IP Licences listed in Attachment 15;
  
 (ii)     all agreements,
arrangements or understandings relating to the Transferring Business at Completion pursuant to which:
  
 (a)     any member of the Vendor’s Group has the right to use any Intellectual Property in the
Transferring Business but excluding any such agreements, arrangements or undertakings relating to computer software and excluding the Hamers Agreement and the BD Licence; or
  
 (b)    any third party has the right to use any Business IPR; and
  
 (iii)   all agreements, arrangements
and understandings either relating exclusively to the Transferring Business as at Completion or relating in part to the Transferring Business at Completion (but then only to the extent that they do so relate) to which any member of the Vendor’s
Group is a party and pursuant to which any of the Companies or, in relation to the US Business, any member of the Vendor’s Group has the right to use any computer software;

		
	“Lease”	  	means the lease under which any Property which is leasehold is held and all documents supplemental to the lease including any licence, consent or approval given under it;
		
	“Lettings”	  	means, in respect of a Property, the leases, tenancies and other rights of occupation affecting the relevant Property;
		
	“Liability Insurance Policies”	  	means all contracts of insurance entered into by the Companies and any member of the Vendor’s Group (including, without limitation, Unipath Diagnostics S.A. (France)) before Completion
(but except in relation to the 2001-2002 policy year, excluding any such contracts of insurance providing coverage for companies domiciled in the United States of America) under which any member of the Vendor’s Group and the Companies (or any
of them) are insured in respect of liability to third parties arising from or in connection with the carrying on of the

  

 79 

			
	 	  	manufacture, marketing, sale and use of Persona products including, for the avoidance of doubt, all such contracts of liability insurance effected with the Captive Insurer and all excess layer
contracts of liability insurance;
		
	“Litigation”	  	has the meaning given in paragraph 14 of Schedule 6 (Warranties);
		
	“Management Accounts”	  	means the management accounts of the Transferring Business for the year ended on the Accounts Date and for the period from 1st January, 2001 to 29th September, 2001, copies of which are set out
in Attachment 5;
		
	“Material Contract”	  	 means:
  
 (i)     any agreement, arrangement or understanding to which any of the Companies is a party or the
benefit of which is held in trust for or has been assigned to any Company; or
  
 (ii)    in relation to the US Business, a US Contract
  
 either (a) as a result of which such Company or, as the case may be, the member of the
Vendor’s Group which is party to the relevant US Contract is liable to pay £500,000 or more per annum and/or entitled to receive £500,000 or more per annum or (b) the absence or termination of which would have a material adverse
effect on the Transferring Business;

		
	“Material Fixed Asset”	  	means any fixed asset with a net book value of £100,000 or more;
		
	“Monoclonal Assets”	  	means the assets listed in (i) Part A of Attachment 7 (including, without limitation, those antibody clones identified as belonging to “Unipath” but excluding those identified
as belonging to “Unilever”), and (ii) Part B of Attachment 7 (non-clone assets);
		
	“Monoclonal Assets Seller”	  	means Unilever U.K. Central Resources Limited, a member of the Vendor’s Group incorporated in England and Wales, which company holds the Monoclonal Assets;
		
	“Non-UK Employees”	  	means the French Employees, the German Employees, the Scandinavian Employees and the US Employees;
		
	“October Management Accounts”	  	means the management accounts of the Transferring Business for the period from 1st January, 2001 to 3rd November, 2001, a copy of which is set out in Attachment 5;

  

 80 

			
	“Patent Cases”	  	means the patent litigation identified in Part A of Schedule 15 (Patent Cases);
		
	“Permits”	  	has the meaning given in sub-clause 13(I) (Employees);
		
	“Permitted Assignee”	  	has the meaning given in sub-clause 28(A) (No Assignment);
		
	“Permitted Encumbrances”	  	 means liens or security interests:
  
 (i)      arising by operation of law in the ordinary and usual course of business;
  
 (ii)     arising under
title retention provisions in sales contracts with third parties entered into in the ordinary and usual course of business;
  
 (iii)   arising under equipment leases with third parties entered into in the ordinary and usual course of
business (save for liens or security interests arising as a result of breach of any such equipment leases); or
  
 (iv)    for Taxes and other governmental charges which are not due and payable;

		
	“Persona Litigation”	  	means any third party complaint, claim, demand, proceeding, suit or action brought or to be brought whether before, on or after the Completion Date against any member of the Purchaser’s
Group or against any member of the Vendor’s Group (including, without limitation, the intimation of a claim or a letter before action) arising out of marketing, sales or use of any Persona product;
		
	“Persona product”	  	means any product marketed as “Persona” or “Persona test sticks” by any of the Companies or any member of the Vendor’s Group (including, without limitation, Unipath
Diagnostics S.A. (France)) prior to, or as at, the date of this Agreement;
		
	“Planning Acts”	  	means the enactments from time to time in force relating to town and country planning;
		
	“Press Announcements”	  	means the press announcements to be issued by Unilever PLC and/or Unilever N.V. and the Purchaser upon Completion each as substantially in the form set out in Attachment
6;
		
	“Proceedings”	  	means any proceeding, suit or action arising out of or in connection with this Agreement;
		
	“Profit and Loss Equalisation Agreement”	  	has the meaning given in sub-clause 23(A) (Profit and Loss Equalisation);

  

 81 

			
	“Profit and Loss Equalisation Agreement Tax Liability”	  	has the meaning given in the Tax Covenant;
		
	“Properties”	  	means the freehold, leasehold or other Immovable Property specified in Schedule 9 (Properties);
		
	“Property Approval”	  	means, in relation to any Property, the consent of any landlord or other third party required for the grant of an underlease of the whole or any part of the relevant Property to the
Purchaser;
		
	“Property Consent”	  	means, in relation to any Property, the consent of any landlord or other third party required for the transfer of the whole or any part of the relevant Property to the
Purchaser;
		
	“Protected Persons”	  	has the meaning given in sub-clause 18(D) (Reorganisation Indemnity);
		
	“Purchaser’s Accountants”	  	means Arthur Andersen of 180 Strand, London WC2R 1BL or such other accountants as may be notified to the Vendor from time to time;
		
	“Purchaser Confidential Information”	  	means all information which is not in the public domain in whatever form held:
		
	 	  	 (i)      relating to any member of the Purchaser’s Group or the business of any such
member;

		
	 	  	 (ii)     supplied by or on behalf of any member of the Purchaser’s Group to any member of the Vendor’s
Group relating to the business of the Purchaser’s Group;

		
	 	  	 (iii)   supplied in confidence to any member of the Vendor’s Group by any third party
and which relates to the business of the Purchaser’s Group; or
  
 (iv)    to the extent that it relates to the Transferring Business;

		
	“Purchaser’s Group”	  	means the Purchaser, its subsidiaries and subsidiary undertakings (including, without limitation, the Companies), each holding company of the Purchaser and all other subsidiaries and
subsidiary undertakings of any such holding company, in each case, at the relevant time;
		
	“Purchaser’s Solicitors”	  	means Allen & Overy of One New Change, London EC4M 9QQ;

  

 82 

			
	“PwC Due Diligence Report”	  	means the due diligence report on the Transferring Business dated 24th August, 2001 prepared on behalf of the Vendor by the Vendor’s Accountants;
		
	“Relevant Agreements”	  	means this Agreement, the Tax Covenant, the Intellectual Property Assignments, the Transitional Services Agreement, the Bedford Property Transfer, the Antibody Patent Licence, the Deed of
Undertaking, the US Transfer Agreement and the US Lease Assignments;
		
	“Relevant Period”	  	has the meaning given in the Environmental Warranties;
		
	“Relief”	  	has the meaning given in the Tax Covenant;
		
	“Reorganisation”	  	means the completed intra-group reorganisation involving the Vendor, Unipath Limited and the Subsidiary, details of which are set out in Attachment 2;
		
	“Reorganisation Tax Liability”	  	has the meaning given in the Tax Covenant;
		
	“Retained Businesses”	  	means all businesses carried on by the Vendor’s Group other than the Transferring Business;
		
	“Retained Liabilities”	  	has the meaning given in sub-clause 10(C) (Assumed Liabilities and Retained Liabilities);
		
	“Scandinavian Employees”	  	means those individuals whose names are set out in Part C of Schedule 11 (Employees) being the persons who are employed by Unipath Scandinavia A.B.;
		
	“Seconded Employees”	  	means Messrs. Peter Welch, Michael Joubert and Fiona Humberstone;
		
	“Senior Employees”	  	means Employees whose work level grading at any relevant time is, in accordance with the Vendor’s Group work grading policy, at level 3 or above;
		
	“Service Document”	  	has the meaning given in sub-clause 41(D) (Agent for Service);
		
	“Settlement Date”	  	has the meaning given in sub-clause 5(B) (Working Capital and Variable Intra-Group Debt Adjustments);
		
	“Share Sellers”	  	means the members of the Vendor’s Group whose names appear in Column 3 of Schedule 4 (Ownership of the Shares) which, in each case, hold the Shares set opposite their name
in Column 2 of Schedule 4 (Ownership of the Shares);

  

 83 

			
	“Shares”	  	means all the issued shares in the capital of the Companies (other than the Subsidiary) details of which are set out in the table in Schedule 4 (Ownership of the
Shares);
		
	“Shared IPR”	  	means any Intellectual Property (other than the Business IPR and excluding all trade marks) or know-how owned by the Vendor or any member of the Vendor’s Group as at the date of this
Agreement which:
		
	 	  	 (i)      has been used by the Transferring Business in relation to a commercialised product;
and/or

		
	 	  	 (ii)     is a material element of any research or development project carried on by the Transferring
Business,

		
	 	  	in each case, at any time in the three years prior to the date of this Agreement;
		
	“so far as the Vendor is aware”	  	means so far as is within the actual knowledge (after having made reasonable enquiries) of Robert Field or Peter Welch (in relation to any matters), Keith Goulborn (in relation to property
matters), Brian Chapman (in relation to Tax matters), Chris Tripp (in relation to UK pensions matters), Nigel Biggs or Peter Milner (in relation to non-UK pensions matters), Alain Hugot, Richard Heath or Caroline Boerma (in relation to Intellectual
Property matters), Frans van der Ouderaa (in relation to Intellectual Property matters, Monoclonal Assets matters and research and development matters), Richard Hazell, James Berkeley or Susie Franklin (in relation to legal matters), Malcolm Smith
(in relation to Employee matters), Stephen Pepper (in relation to Environmental matters), Patricia Nasshorn (in relation to the US Business) or Les Howcroft (in relation to insurance matters), and all other phrases in this Agreement relating to the
knowledge, information and belief or awareness of the Vendor shall be construed as a reference to “so far as the Vendor is aware” as so defined;
		
	“Specified Agreements”	  	means the Relevant Agreements and any other documents to be entered into at Completion in accordance with Schedule 5 (Completion Arrangements);
		
	“Step Three Sale”	  	has the meaning given in sub-clause 18(D) (Reorganisation Indemnity);
		
	“Straddle Period”	  	means any period of account for Taxation purposes which begins on or before and ends after Completion;

  

 84 

			
	“Step Two Hive-Down”	  	has the meaning given in sub-clause 18(C) (Reorganisation Indemnity);
		
	“Subsidiary”	  	means Unipath Management Limited of Priory Business Park, Bedford, Bedfordshire, MK44 3UP, details of which are set out in Schedule 3 (Information about the
Companies);
		
	“Tax” or “Taxation”	  	has the meaning given to “Tax” in the Tax Covenant;
		
	“Tax Authority”	  	means any taxing or other authority competent to impose any liability to Tax;
		
	“Tax Claim”	  	has the meaning given in paragraph 9(C) of Schedule 7 (Limitations on Liability);
		
	“Tax Covenant”	  	means the tax covenant in the Agreed Form to be entered into by the Vendor and the Purchaser at Completion;
		
	“Tax Warranties”	  	means the Warranties set out in paragraphs 6(H), 6(I), 7(iv) and 26 to 41 of Schedule 6 (Warranties);
		
	“Taxes Act”	  	means the Income and Corporation Taxes Act 1988;
		
	“Transfer Documents”	  	means the US Transfer Agreement, the US Lease Assignments, the Intellectually Property Assignments, the Bedford Property Transfer, the agreement for the transfer of the Share in Unipath
Diagnostics GmbH set out in Attachment 10, the notarial deed of transfer of the Shares in Unipath B.V. referred to in paragraph 5 of Schedule 5 and any other documents for the transfer of assets and/or shares to be entered into
at Completion in accordance with Schedule 5 (Completion Arrangements);
		
	“Transfer Regulations”	  	means the relevant legislation in France implementing the provisions of the EU Acquired Rights Directive (77/187/EEC) (as amended);
		
	“Transfer Taxes”	  	has the meaning given in sub-clause 34(B) (Costs and Expenses);
		
	“Transferring Business”	  	means:
		
	 	  	 (i)      the business as carried on at the date of this Agreement by the Companies (including through the
occupation or use of the Bedford Property, the IP Assets and the Monoclonal Assets);

		
	 	  	 (ii)     the US Business; and

  

 85 

					
		
	 	  	 (iii)   the licensing as carried on at the date of this Agreement by any member of the Vendor’s Group of the Intellectual
Property which is licensed pursuant to licences granted by any member of the Vendor’s Group and listed in the Data Room Index including, without limitation, that which is licensed pursuant to the licences in Attachment 15;

		
	“Transferring Business Books and Records”	  	means all books and records of the Vendor or of any member of the Vendor’s Group containing information relating to the Transferring Business or on which any information relating to the
Transferring Business is recorded including, without limitation, all documents and other material (including, without limitation, all forms of computer or machine readable material);
		
	“Transferring Business Plant and Machinery”	  	means all the plant, machinery and other equipment (including, without limitation, furniture, vehicles, spares, loose tools, fittings, partitioning and other items) owned or leased by (a) any
member of the Vendor’s Group and which are used wholly or predominantly in the Transferring Business or (b) a Company, in each case, at Completion;
		
	“Transitional Services Agreement”	  	means the agreement, in the Agreed Form, to be entered into by Unilever U.K. Central Resources Limited and Unipath Limited at Completion relating to the provision by Unilever U.K. Central
Resources Limited and other members of the Vendor’s Group to the Purchaser, the Companies and the US Business of certain services for a transitional period following Completion;
		
	“UK Employees”	  	means those individuals who are employed by Unipath Limited or Unipath Management Limited as at Completion;
		
	“Undisclosed Assurances”	  	has the meaning given in sub-clause 12(B) (Intra-Group Guarantees and Other Agreements);
		
	“Unilever Accounting Manual”	  	means the internal accounting manual adhered to by members of the Vendor’s Group, a copy of which has been included in the Data Room;
		
	“Unilever Marks”	  	has the meaning given in sub-clause 21(C) (Purchaser’s Undertakings);
		
	“Unipath’s Obligations”	  	has the meaning given in sub-clause 12(D) (Intra-Group Guarantees and Other Agreements);
		
	“US Assumed Litigation”	  	means the claims, actions and proceedings made or brought against the US Business Seller with respect to the US Business by Intervention, Inc., details of which are set out in part 14 of the
Disclosure Letter;

  

 86 

							
		
	“US Balance Sheet”	  	means the balance sheet of the US Business as at the Accounts Date, a copy of which is set
out in Attachment 13;
		
	“US Business”	  	 means the business of:
  
 (i)      the distribution and sale of pregnancy testing kits, ovulation and fertility monitoring
systems, aids to contraception and other women’s reproductive health diagnostic products; and
  
 (ii)     the distribution and sale of certain in vitro diagnostic products,
  
 in each case as carried on by the US Business Seller at the date of this
Agreement;

		
	“US Business Assets”	  	means the assets utilised by the US Business Seller wholly or predominantly in the US Business, as set out in sub-clauses 2(E)(i) to (ix) (inclusive) (Sale and
Purchase);
		
	“US Business Information”	  	 means all information, know-how and techniques (whether or not confidential and in whatever form held) including, without limitation,
all:
  
 (i)      formulae, designs, specifications, drawings, data, manuals and instructions;
  
 (ii)     customer lists, sales, marketing and promotional information;
  
 (iii)   business plans and
forecasts; and
  
 (iv)    technical or other expertise
  
 in each
case, relating wholly or predominantly to the US Business;

		
	“US Business Name”	  	means Unipath Diagnostics Co. or any name or sign including the words Unipath Diagnostics Co. or any name or sign confusingly similar to that name or sign or likely to be associated
with it;
		
	“US Business Records”	  	means all books and records containing or relating to any US Business Information or on which any US Business Information is recorded (including, without limitation, all documents
and other material (including, without limitation, all forms of computer or machine readable material)), excluding all such books and records to the extent relating to the US Retained Litigation;

  

 87 

					
		
	“US Business Seller”	  	means Conopco, Inc. (including as sometimes described as d/b/a Unipath Diagnostics Company), a member of the Vendor’s Group incorporated in the State of New York, United States of America,
which company carries on the US Business;
		
	“US Business Stocks”	  	means all stocks of raw materials, work-in-progress, finished goods or completed services and other stock-in-trade and packaging owned by a member of the Vendor’s Group and used wholly or
predominantly in the US Business at Completion;
		
	“US Claims”	  	means all rights and claims of any member of the Vendor’s Group subsisting at Completion under any warranty, term, condition, guarantee or indemnity, whether express or implied, in favour
of any member of the Vendor’s Group against any third party to the extent relating to the US Business Assets;
		
	“US Contracts”	  	means all the contracts (which include, amongst other things, all agreements, arrangements and commitments) relating wholly or predominantly to the US Business at Completion to which any member
of the Vendor’s Group is a party or the benefit of which is held in trust for or has been assigned to any such member but excluding (i) all licences of Intellectual Property, and (ii) any employment contracts or employment arrangements
(including, without limitation, pension arrangements) with US Employees;
		
	“US Employees”	  	means those individuals whose names are set out in Part D of Schedule 11 (Employees) being the persons who are employed by the US Business Seller and are engaged in the US
Business;
		
	“US Goodwill”	  	means all the goodwill of any member of the Vendor’s Group in relation to the US Business together with the exclusive right for the Designated Purchaser of the US Business and its assignees
to trade under the US Business Name and to represent itself as carrying on the US Business in succession to the US Business Seller or any other member of the Vendor’s Group;
		
	“US Lease Assignments”	  	means the three assignment and assumption agreements relating to the transfer of the US Properties in the Agreed Form;
		
	“US Plant and Machinery”	  	means all the plant, machinery and other equipment (including, without limitation, furniture, vehicles, spares, loose tools, fittings, partitioning and other items) owned by a member of the
Vendor’s Group and used wholly or predominantly by or in the US Business as at Completion;

  

 88 

			
	“US Properties”	  	means the Properties located in the United States, details of which are set out in Part B of Schedule 9 (Properties);
		
	“US Receivables”	  	 means:
  
 (i)      any debts or other sums other than Intra-Group Trading and Services Accounts due or
payable as at Completion to any member of the Vendor’s Group to the extent relating to the US Business;
  
 (ii)     any debts or other sums other than Intra-Group Trading and Services Accounts which become due
or payable to any member of the Vendor’s Group after Completion to the extent relating to goods supplied, services performed or rights licensed in respect of the US Business prior to Completion;
  
 (iii)   any interest payable on the
debts or other sums specified in sub-paragraphs (i) and (ii) above; and
  
 (iv)    the benefit of all securities, guarantees, indemnities and rights relating to the debts or other sums
specified in sub-paragraphs (i) and (ii) above;

		
	“US Retained Litigation”	  	means the claims, actions and proceedings made or brought against the US Business Seller with respect to the US Business by Profile Pursuit, Inc., details of which are set out in part 14 of the
Disclosure Letter;
		
	“US Transfer Agreement”	  	means the General Assignment and Assumption Agreement and Bill of Sale, in the Agreed Form, to be entered into by the US Business Seller and the Designated Purchaser of the US Business at
Completion relating to the transfer of the US Business Assets to that Designated Purchaser;
		
	“Variable Intra-Group Debt”	  	means, as at the Completion Date, the aggregate of the amounts owed by the Companies to members of the Vendor’s Group in respect of the period prior to Completion (other than the Fixed
Intra-Group Debt Amounts, Intra-Group Trading and Services Amounts and any amount to be paid by Unipath Diagnostics GmbH pursuant to sub-clause 23(D)(i) (Profit and Loss Equalisation)) after deducting the aggregate of the amounts (if any)
owed by members of the Vendor’s Group to the Companies in respect of the period prior to Completion (other than Intra-Group Trading and Services Amounts and any amount to be paid to Unipath Diagnostics GmbH pursuant to sub-clause
23(C)(i) (Profit and Loss Equalisation)), all as set out on the Variable Intra-Group Debt Statement. For the avoidance

  

 89 

			
	 	  	of doubt the Variable Intra-Group Debt can be a positive (representing a net liability of the Companies) or negative (representing a net asset of the Companies) amount, or zero;
		
	“Variable Intra-Group Debt Statement”	  	 means the statement of:
  
 (i)     Variable Intra-Group Debt; and
  
 (ii)    the individual amounts comprised within Variable Intra-Group
Debt,
  
 to be prepared in accordance with Clause 6 (Completion Accounts
and Variable Intra-Group Debt Statement) and Part C of Schedule 10 (Completion Accounts and Variable Intra-Group Debt Statement);

		
	“VAT”	  	means the tax imposed by the Sixth Council Directive of the European Community and any national legislation implementing such directive together with legislation supplemental thereto and, in
particular, means, in relation to the United Kingdom, the tax imposed by the VATA 1994 and legislation supplemental thereto;
		
	“VATA 1994”	  	means the Value Added Tax Act 1994 of the United Kingdom;
		
	“Vendor’s Accountants”	  	means PricewaterhouseCoopers of One Embankment Place, London WC2N 6RH;
		
	“Vendor’s Dollar Bank Account”	  	[intentionally omitted]
		
	“Vendor’s Sterling Bank Account”	  	[intentionally omitted]
		
	“Vendor Confidential Information”	  	 means all information which is not in the public domain in whatever form held:
  
 (i)      relating to any member of the Vendor’s Group or the
business of any such member;
  
 (ii)     supplied by or on behalf of any member of the Vendor’s Group to any member of the Purchaser’s Group (including at the time when any such member of the Purchaser’s Group was a member of the
Vendor’s Group) relating to the business of the Vendor’s Group; or

  

 90 

			
		
	 	  	 (iii)  supplied in confidence to any member of the Vendor’s Group by any third party and which relates to the business of the
Vendor’s Group, to the extent that it does not relate to the Transferring Business;

		
	“Vendor’s Group”	  	means the Vendor, Unilever N.V., Unilever PLC and their respective subsidiaries and subsidiary undertakings at the relevant time (but excluding the Companies);
		
	“Vendor’s Group Plan”	  	means any or all of the UPF, 1999 SERA and the Vendor’s Non-UK Group Plans (each as defined in Schedule 8 (Pensions));
		
	“Warranties”	  	means the warranties set out in Schedule 6 (Warranties) and paragraph 18 of Part A and paragraph 5 of Part B of Schedule 8 (Pensions);
		
	“Working Capital Amount”	  	means the amount of the aggregate working capital of the Companies and the US Business at the Completion Date as set out in the aggregate working capital statement included in the Completion
Accounts and calculated in accordance with Parts A and B of Schedule 10 (Completion Accounts);
		
	“Working Capital Benchmark”	  	means the sum calculated in accordance with paragraph 3 of Part B of Schedule 10 (Completion Accounts) as such sum may be adjusted in accordance with Clause 6
(Completion Accounts and Variable Intra-Group Debt Statement); and
		
	“Working Hours”	  	means 9.30 a.m. to 5.30 p.m. (local time) on a Business Day.

  

	(B)	In this Agreement and the Schedules to it, unless otherwise specified: 

  

	 	(i)	references to Clauses, Schedules and Attachments are to Clauses of, and Schedules and Attachments to, this Agreement; 

  

	 	(ii)	a reference to a sub-clause is to a sub-clause of the Clause in which such reference appears, to a paragraph is to a paragraph of the sub-clause or Schedule (as the case may be) in
which such reference appears and to a sub-paragraph is to a sub-paragraph of the paragraph in which such reference appears; 

  

	 	(iii)	a reference to any statute or statutory provision shall be construed as a reference to the same as it may have been, or may from time to time be, amended, modified or re-enacted
except to the extent that the Vendor’s or the Purchaser’s liability would be increased as a result of such amendment, modification or re-enactment; 

  

 91 

	 	(iv)	references to a “company” shall be construed so as to include any company, corporation or other body corporate, wherever and however incorporated or established;

  

	 	(v)	references to a “person” shall be construed so as to include any individual, firm, company, government, state or agency of a state or any joint venture, association,
partnership, works council or employee representative body (whether or not having separate legal personality); 

  

	 	(vi)	a company is a “subsidiary” of another company (its “holding company”) if that other company, directly or indirectly, through one or more subsidiaries:

  

	 	(a)	holds a majority of the voting rights in it; or 

  

	 	(b)	is a member or shareholder of it and has the right to appoint or remove a majority of its board of directors or other equivalent managing body; or 

  

	 	(c)	is a member or shareholder of it and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in it; 

  

	 	(vii)	references to writing shall include any mode of reproducing words in a legible and non-transitory form; 

  

	 	(viii)	references to times of the day are to London time; 

  

	 	(ix)	headings are for convenience only and do not affect the interpretation of this Agreement; 

  

	 	(x)	references to any English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal concept or thing shall in
respect of any jurisdiction other than England be deemed to include what most nearly approximates in that jurisdiction to the English legal term; 

  

	 	(xi)	references to “indemnify” and “indemnifying” any person against any circumstances include indemnifying and keeping that person harmless on an after Tax basis
from all actions, claims, demands and proceedings from time to time made against that person in connection with those circumstances and all liabilities, loss, damages and all reasonable payments, costs and expenses made or incurred by that person as
a consequence of or which would not have arisen but for those circumstances; 

  

	 	(xii)	 references to the Purchaser indemnifying any member of the Vendor’s Group shall constitute undertakings by the Purchaser to the Vendor for itself and on behalf
of each relevant member of the Vendor’s Group and references to the Vendor indemnifying any member of the Purchaser’s Group shall constitute 

  

 92 

	 	 
undertakings by the Vendor to the Purchaser for itself and on behalf of each relevant member of the Purchaser’s Group; 

  

	 	(xiii)	references to the singular shall include the plural and vice versa; 

  

	 	(xiv)	references to “£”, “pounds sterling” or “sterling” are to the lawful currency of the United Kingdom and references to “US$”, “US
dollars” or “dollars” are to the lawful currency of the United States of America; and 

  

	 	(xv)	each of the Attachments shall be in an Agreed Form. 

  

 93 

 SCHEDULE 2 
 (Information about the Vendor) 
  

			
	Name:	  	Unilever U.K. Holdings Limited
		
	Registered Number:	  	17049
		
	Place of Incorporation:	  	England and Wales
		
	Registered Office:	  	Unilever House, Blackfriars, London EC4P 4BQ

  

 94 

 SCHEDULE 3 
 (Information about the Companies) 
  

			
	Name:	  	Unipath Limited
		
	Registered Number:	  	417198
		
	Place of Incorporation:	  	England and Wales
		
	Registered Office:	  	Priory Business Park, Bedford MK44 3UP
		
	Tax Residence:	  	United Kingdom
		
	Name:	  	Unipath Management Limited
		
	Registered Number:	  	842528
		
	Place of Incorporation:	  	England and Wales
		
	Registered Office:	  	Priory Business Park, Bedford MK44 3UP
		
	Tax Residence:	  	United Kingdom
		
	Issued Share Capital:	  	300,000 Ordinary Shares of £1 each
		
	Name of Registered Holder:	  	Unipath Limited
		
	Name:	  	Unipath Diagnostics GmbH
		
	Registered Number:	  	HRB 29 443 AG Köln
		
	Place of Incorporation:	  	Germany
		
	Registered Office:	  	D-50676 Köln, An Lyskirchen 14
		
	Tax Residence:	  	Germany
		
	Name:	  	Unipath Scandinavia A.B.
		
	Registered Number:	  	556052 – 1410
		
	Place of Incorporation:	  	Sweden
		
	Registered Office:	  	Sankt Lars vag 45, SE 222 70 Lund, Sweden
		
	Tax Residence:	  	Sweden

  

 95 

			
	Name:	  	Unipath B.V.
		
	Registered Number:	  	30142693
		
	Place of Incorporation:	  	The Netherlands
		
	Registered Office:	  	Tolnasingel 1, 2411 PV Bodegraven, The Netherlands
		
	Tax Residence:	  	The Netherlands

  

 96 

 SCHEDULE 4 
 (Ownership of the Shares) 
  

							
	 (1)
 Name of Company

	 	 (2)
 Number and class of Shares

	 	 (3)
 Name of registered holder

	 	 (4)
 Address of registered holder

	Unipath Limited	 	2,100 ordinary shares of £1 each	 	Unilever U.K. Holdings Limited	 	 Unilever House
 Blackfriars
 London
 EC4P 4BQ
 England

				
	Unipath Diagnostics GmbH	 	One share of DM4,000,000	 	Gibbs Verwaltungs und Beteiligungs GmbH	 	 Dammtorwall 15
 D-20355 Hamburg
 Germany

				
	Unipath Scandinavia A.B.	 	7,000 shares of SEK100 each	 	Unilever Invest A.B.	 	 PO Box 621
 SE-251 06
 Helsingborg
 Sweden

				
	Unipath B.V.	 	50 shares of Fl.1,000 each	 	Unilever Nederland B.V.	 	 Weena 457
 3013 AL Rotterdam
 The Netherlands

  

 97 

 SCHEDULE 5 
 (Completion Arrangements) 
  

	1.	GENERAL 

  

	(A)	Vendor’s obligations 

  
 At Completion the Vendor shall: 
  

	 	(i)	deliver to the Purchaser a copy of an extract of the minutes of a duly held meeting of the directors of the Vendor (or a duly constituted committee thereof) authorising the
execution by the Vendor of this Agreement, the Disclosure Letter, the Tax Covenant, the Bedford Property Transfer, the Deed of Undertaking and any other document to be executed by the Vendor and referred to in this Schedule 5 and, in the case
where such execution is authorised by a committee of the board of directors of the Vendor, a copy of the minutes of a duly held meeting of the directors constituting such committee or the relevant extract thereof (in each case such copy minutes
being certified as correct by the secretary of the Vendor); 

  

	 	(ii)	deliver to the Purchaser all proxies or powers of attorney (where required, executed before and endorsed by a duly appointed public notary whose signature shall, where necessary, be
authenticated as required by the law of that jurisdiction) authorising the Vendor or the relevant member of the Vendor’s Group (or any person acting on their behalf) to enter into this Agreement or any document set out in this Schedule
5, together with (other than the case of any power of attorney executed by Unilever N.V.) a copy of an extract of the minutes of a duly held meeting of the directors of the relevant company (or a duly constituted committee thereof) authorising
the execution of such powers of attorney; 

  

	 	(iii)	deliver to the Purchaser the Tax Covenant, duly executed by the Vendor; 

  

	 	(iv)	deliver to the Purchaser the Transitional Services Agreement, duly executed by Unilever U.K. Central Resources Limited and Unipath Limited; 

  

	 	(v)	deliver to the Purchaser, pursuant to but subject to the provisions of Part C of Schedule 9 (Properties), the Bedford Property Transfer duly executed by the Vendor together
with all the title deeds and documents relating to the Bedford Property including, if already obtained, all consents necessary for its transfer to the Purchaser; 

  

	 	(vi)	deliver to the Purchaser the Deed of Undertaking, duly executed by the Vendor and Unipath Management Limited; 

  

	 	(vii)	deliver to the Purchaser the Antibody Patent Licence, duly executed by Unilever PLC and Unilever N.V.; 

  

 98 

	 	(viii)	deliver to the Purchaser the Intellectual Property Assignments, duly executed by the IP Assets Sellers; 

  

	 	(ix)	deliver to the Purchaser the US Transfer Agreement, duly executed by the US Business Seller; and 

  

	 	(x)	to the extent applicable in the relevant jurisdictions, procure that all land or title certificates, title deeds or other documents relating to each Property are held to the order
of the Purchaser. 

  

	 	(xi)	deliver to the Purchaser the receipts referred to in sub-clause 4(B) (Fixed Intra-Group Debt Amounts); and 

  

	 	(xii)	subject to the execution thereof by the Purchaser, deliver to the Purchaser a power of attorney in the Agreed Form, duly executed by the Vendor, in favour of the relevant Designated
Purchaser in respect of the Shares in Unipath Limited, 

  
 PROVIDED that the US Transfer Agreement and any power of attorney relating thereto shall be executed outside the United Kingdom and delivered to the Purchaser at the following address: Inverness Medical Innovations, Inc., Suite 200, 51
Sawyer Road, Waltham, Massachusetts, 02453, United States of America. 
  

	(B)	Purchaser’s obligations 

  
 At Completion the Purchaser shall: 
  

	 	(i)	deliver to the Vendor a copy of an extract of the minutes of a duly held meeting of the directors of the Purchaser (or a duly constituted committee thereof) authorising the
execution by the Purchaser of this Agreement, the Disclosure Letter, the Tax Covenant, the Deed of Undertaking, the US Transfer Agreement and any other document to be executed by the Purchaser and referred to in this Schedule 5 and, in the
case where such execution is authorised by a committee of the board of directors of the Purchaser, a copy of the minutes of a duly held meeting of the directors constituting such committee or the relevant extract thereof (in each case such copy
extract or minutes being certified as correct by the secretary of the Purchaser); 

  

	 	(ii)	deliver to the Vendor all proxies or powers of attorney (where necessary, executed before and endorsed by a duly appointed public notary whose signature shall, where necessary, be
authenticated as required by the law of that jurisdiction) authorising the Purchaser or the relevant member of the Purchaser’s Group (or any person acting on their behalf) to enter into this Agreement or any document set out in this Schedule
5, together with a copy of an extract of the minutes of a duly held meeting of the directors of the relevant company (or a duly constituted committee thereof) authorising the execution of such powers attorney; 

  

 99 

	 	(iii)	deliver to the Vendor the counterpart Tax Covenant, duly executed by the Purchaser; 

  

	 	(iv)	deliver to the Vendor, pursuant to but subject to the provisions of Part C of Schedule 9 (Properties), the counterpart Bedford Property Transfer duly executed by the relevant
Designated Purchaser; 

  

	 	(v)	deliver to the Vendor the counterpart Deed of Undertaking, duly executed by the Purchaser; 

  

	 	(vi)	deliver to the Vendor counterpart Intellectual Property Assignments, duly executed by the relevant Designated Purchaser; 

  

	 	(vii)	deliver to the Vendor the counterpart US Transfer Agreement, duly executed by the relevant Designated Purchaser; 

  

	 	(viii)	deliver to the Vendor the counterpart Antibody Patent Licence, duly executed by the relevant Designated Purchaser; 

  

	 	(ix)	deliver to the Vendor the counterpart power of attorney referred to at sub-paragraph (A)(xii) of this Schedule 5, duly executed by the Purchaser;

  

	 	(x)	pay the Sterling Amount in pounds sterling to the Vendor’s Sterling Bank Account; 

  

	 	(xi)	pay the Dollar Amount in US dollars to the Vendor’s Dollar Bank Account; and 

  

	 	(xii)	procure the payment of the Fixed Intra-Group Debt Amounts (in accordance with sub-clause 4(A)) to the bank accounts of the relevant members of the Vendor’s Group
notified by them to the Purchaser prior to Completion. 

  
 PROVIDED that the counterpart US Transfer Agreement and any power of attorney relating thereto shall be executed outside the United Kingdom and delivered to the Vendor at the following address: Conopco, Inc., Lever House, 390 Park Avenue,
New York, NY 10022-4698. 
  

	2.	GENERAL PROVISIONS IN RELATION TO THE US BUSINESS ASSETS AND THE MONOCLONAL ASSETS 

  
 At Completion the Vendor shall deliver, or procure the delivery of, to the relevant Designated Purchaser all the US Business
Assets which are capable of transfer by delivery and the Monoclonal Assets (other than any records or Transferring Business Books and Records which are to be retained by the Vendor in accordance with Clause 24 (Books and Records)), with the
intent that title in such US Business Assets and Monoclonal Assets shall pass by and upon such delivery. 
  

 100 

	3.	GENERAL PROVISIONS IN RELATION TO THE COMPANIES 

  
 At Completion: 
  

	 	(i)	the Vendor shall deliver (or procure the delivery of) to the relevant Designated Purchaser:- 

  

	 	(a)	other than with respect to the Shares of Unipath Scandinavia A.B., duly executed transfers in respect of the Shares duly completed by or on behalf of all persons required to execute
such transfers in favour of the Purchaser or such person as the Purchaser may nominate together with the certificates for such Shares (or an indemnity in lieu thereof) and any power of attorney under which any transfer is executed;

  

	 	(b)	the certificates for the Shares of Unipath Scandinavia A.B. duly endorsed by or on behalf of all persons required to endorse such certificates in favour of the Purchaser or such
person as the Purchaser may nominate and any power of attorney under which any certificate is so endorsed; 

  

	 	(c)	or hold to the order of the Purchaser or the relevant Designated Purchaser, the statutory books (which shall be written up to but not including the Completion Date), the certificate
of incorporation, any certificate of incorporation on change of name, corporate seal (if any) and other constitutional documents of each of the Companies (in the case of Unipath Diagnostics GmbH, Unipath Scandinavia A.B. and Unipath B.V., to the
extent applicable); 

  

	 	(d)	duly executed resignations in the Agreed Form of the directors and company secretaries of the Companies as listed in Attachment 16, such resignations to be expressed to take
effect on the Completion Date; 

  

	 	(e)	copies (signed by the auditors) of the letters from the auditors of each of the Companies referred to in paragraph (ii) below; 

  

	 	(ii)	the Vendor shall procure the present auditors of each of the Companies to resign their office as such, and to deposit at the registered or principal office address of the relevant
Company a letter notifying their resignation (which letters shall, in the case of Unipath Limited and the Subsidiary and in accordance with section 394 Companies Act 1985, acknowledge that these are no circumstances connected with their resignation
that should be brought to the attention of members or creditors of those Companies); 

  

	 	(iii)	the Vendor shall procure board meetings of each of the Companies to be held at which:- 

  

	 	(a)	 (in relation to Unipath Limited) it shall be resolved that each of the transfers relating to the Shares shall be approved for registration and 

  

 101 

	 	 
(subject only to the transfers being duly stamped) each transferee registered as the holder of the Shares concerned in the register of members;

  

	 	(b)	each of the persons nominated by the relevant Designated Purchaser shall be appointed directors and/or secretary and/or auditors, as the relevant Designated Purchaser shall direct
(such appointments to take effect on the Completion Date); and 

  

	 	(iv)	the Vendor shall procure that minutes of each board meeting held pursuant to sub-paragraph 3(iii), certified as correct by a director or the secretary of the relevant
Company, the relevant notices and the resignations and acknowledgements referred to are delivered to the relevant Designated Purchaser. 

  

	4.	SPECIFIC PROVISIONS IN RELATION TO UNIPATH DIAGNOSTICS GMBH 

  
 At Completion, the Vendor shall procure that Gibbs Verwaltungs und Beteiligungs GmbH enters into an agreement with the relevant Designated Purchaser
(notarised by a duly appointed public notary) effective to transfer the Share in Unipath Diagnostics GmbH to the relevant Designated Purchaser (such agreement being in the form set out in Attachment 10). 
  

	5.	SPECIFIC PROVISIONS IN RELATION TO UNIPATH B.V. 

  
 At Completion, the Vendor shall procure that Unilever Nederland B.V. and Unipath B.V. execute, and the Purchaser shall procure that the relevant
Designated Purchaser executes, a notarial deed of transfer of the Shares in Unipath B.V. from Unilever Nederland B.V. to the relevant Designated Purchaser. 
  

 102 

 SCHEDULE 6 
 (Warranties) 
  

	1.	OWNERSHIP OF THE SHARES 

  

	(A)	The Shares have been validly issued, are legally and beneficially owned by the relevant members of the Vendor’s Group as stated in Schedule 4 (Ownership of the Shares)
and such shares in aggregate constitute the entire issued and allotted share capital of each of the Companies other than the Subsidiary. Unipath Limited is the legal and beneficial owner of the entire issued and allotted share capital of the
Subsidiary, which share capital has been validly issued. 

  

	(B)	There is no option, right to acquire, mortgage, charge, pledge, lien or other form of security or encumbrance or equity on, over or affecting the Shares, the shares in the capital
of the Subsidiary or any of them and there is no agreement or commitment to give or create any of the foregoing and no claim has been made by any person to be entitled to any of the foregoing. 

  

	(C)	All unissued shares, debentures or other securities of each of the Companies are free from any option or right to acquire, right of pre-emption, lien, charge or other form of
agreement, rights, interest or encumbrance whatsoever. No loan or share capital of any nature has been issued or allotted by any of the Companies since the Accounts Date and there are in existence no rights or options to the issue or allotment of
any loan or share capital of any Company or to convert any loan or share capital of any Company into share capital or share capital of a different description. 

  

	(D)	None of the Companies has at any time in the 6 years immediately preceding the date of this Agreement repaid or redeemed or agreed to repay or redeem the capital on any shares of
its capital or in any way effected any reduction of its issued share capital. No Company has at any time in the 6 years immediately preceding the date of this Agreement purchased its own shares. 

  

	2.	CAPACITY OF THE VENDOR’S GROUP 

  

	(A)	The Vendor has the corporate power and authority to enter into and perform this Agreement and each of the Vendor and the other relevant members of the Vendor’s Group has the
corporate power and authority to enter into and perform any other Specified Agreement required to be entered into by it under this Agreement. 

  

	(B)	This Agreement constitutes, and the other Specified Agreements to be executed by any member of the Vendor’s Group which are to be delivered at Completion will, when executed,
constitute, binding obligations of the relevant members of the Vendor’s Group in accordance with their respective terms. 

  

	(C)	The execution and delivery of this Agreement and the other Specified Agreements and the performance by each relevant member of the Vendor’s Group of its obligations hereunder
and thereunder will not:- 

  

	 	(i)	result in a breach of any provision of the memorandum or articles of association of that member of the Vendor’s Group; 

  

 103 

	 	(ii)	result in a breach of, or constitute a default under, any agreement or instrument to which that member of the Vendor’s Group is a party or is bound; 

 

	 	(iii)	result in a breach of any order, judgment, award, injunction or decree of any court or governmental agency or of any other restriction of a similar nature to which that member of
the Vendor’s Group is a party or is bound; 

  

	 	(iv)	require the consent of its shareholders; 

  

	 	(v)	require that member of the Vendor’s Group to obtain any consent or approval of, or give any notice to or make any registration with, any governmental or other authority which
has not been obtained or made at the date of this Agreement and is in full force and effect where failure to obtain such consent or approval, give such notice or make such registration is material in the context of the transactions contemplated by
this Agreement; or 

  

	 	(vi)	result in the creation or imposition of any lien, charge or encumbrance of any nature on all or any part of the property or assets comprised in the Transferring Business other than
any such lien, charge or encumbrance which arises as a result of the execution and delivery of this Agreement and the other Specified Agreements by the relevant members of the Purchaser’s Group and the performance by each such member of the
Purchaser’s Group of its obligations hereunder and thereunder. 

  

	3.	GROUP STRUCTURE 

  

	(A)	The Shares and the shares in issue in the Subsidiary are all fully paid up. 

  

	(B)	There is no agreement or commitment outstanding which calls for the allotment, issue or transfer of, or accords to any person the right to call for the allotment, issue or transfer
of, any shares (including, without limitation, the Shares) or debentures in or securities of any of the Companies. No person has claimed to have any rights to any of the same. 

  

	(C)	No Company acts or carries on business in partnership with any other person or is a member of any corporate or unincorporated body, undertaking or association (other than the
Subsidiary) or holds or is liable on any share or security which is not fully paid up or which carries any liability. 

  

	(D)	No Company has any interest in or has agreed to acquire an interest in the share capital of any other body corporate or undertaking which is not one of the other Companies.

  

	(E)	 Each Company (i) is a limited company duly incorporated under the laws of the jurisdiction of its incorporation, (ii) possesses the capacity to sue and be sued in
its own 

  

 104 

	 	 
name and (iii) has the corporate power to carry on the business carried on by it and to own the property and other assets owned by it.

  

	4.	OWNERSHIP OF FIXED ASSETS (EXCLUDING PROPERTIES) 

  

	(A)	Each of the Material Fixed Assets listed in the Fixed Asset Register (excluding the Properties) is owned both legally and beneficially by the relevant Company or, in the case of
Material Fixed Assets used in the US Business, by a member of the Vendor’s Group. 

  

	(B)	The Fixed Asset Register sets out a record (complete in all material respects) of the Material Fixed Assets used in the Transferring Business (other than the Properties and fixed
assets held pursuant to leasing, hiring, hire purchase, credit sale or conditional sale agreements (“Leased Assets”)) as at 1st December, 2001 and, since that date, there have been no material acquisitions of fixed assets
(other than Leased Assets) used in the Transferring Business. There are no outstanding commitments to acquire any Material Fixed Asset. 

  

	(C)	All material leasing, hiring, hire purchase, credit sale or conditional sale agreements relating to the Transferring Business and to which any of the Companies or, in relation to
the US Business, a member of the Vendor’s Group is a party are listed on the Data Room Index. 

  

	(D)	With the exception of Permitted Encumbrances, there is no option, right of pre-emption, right to acquire, mortgage, charge, pledge, lien or other form of security or encumbrance or
equity on, over or affecting the whole or any part of the fixed assets of any of the Companies, the US Business or otherwise comprised within the Transferring Business (other than the Properties and any Leased Assets) and there is no agreement or
commitment to give or create any. 

  

	(E)	With the exception of the IP Assets and assets which will be employed by the Vendor or members of the Vendor’s Group in the provision of services pursuant to the Transitional
Services Agreement, the assets of the Companies, the Bedford Property, the US Business Assets and the Monoclonal Assets comprise all the assets used by one or more of the Companies and members of the Vendor’s Group to operate the Transferring
Business as carried on at the date of this Agreement. 

  

	(F)	Save for goods, services or facilities to be provided by the Vendor or any member of the Vendor’s Group pursuant to the Transitional Services Agreement, there were (immediately
prior to the execution of this Agreement) no goods, services or facilities provided by the Vendor or any other member of the Vendor’s Group to or for the benefit of the Transferring Business where the failure to provide such goods, services or
facilities would have a material adverse effect on the Transferring Business. 

  

	(G)	The loan between Unilever UK Central Resources Limited and the Subsidiary partially repaid as part of the Step Two Hive-Down and all Fixed Intra-Group Debt and Variable Intra-Group
Debt were, or are, made on an on demand basis. 

  

 105 

	5.	ACCURACY OF INFORMATION 

  

	(A)	The information given in Schedule 2 (Information about the Vendor), Schedule 3 (Information about the Companies), Schedule 4 (Ownership of Shares) and Parts A
and B of Schedule 9 (Properties) is true and accurate. 

  

	(B)	The copies of the memorandum and articles of association (or other equivalent constitutional documents) of each Company which have been annexed to the Disclosure Letter are complete
and accurate and have annexed to them copies of all documents required by law to be so annexed. 

  

	(C)	The statutory books (including all registers and minute books) of each Company have been properly kept and contain a materially accurate record of the matters which should be dealt
with in those books and no notice or allegation that any of them is incorrect or should be rectified has been received by the Vendor or any of the Companies. 

  

	(D)	All documents which should have been delivered by any of the Companies within the last two years to the Registrar of Companies or the equivalent thereof have been properly so
delivered. 

  

	6.	ACCOUNTS 

  

	(A)	The Accounts of each of the Companies (other than Unipath B.V.): 

  

	 	(i)	were prepared in accordance with accounting principles generally accepted in the jurisdiction of incorporation of the relevant Company at the time they were prepared and comply with
applicable local legal requirements; 

  

	 	(ii)	show a true and fair view (in accordance with the respective local accounting principles) of the state of affairs of the relevant Company as at, and of the results of the business
of such Company for the financial year ended on, the Accounts Date; and 

  

	 	(iii)	were prepared on bases and in accordance with policies substantially consistent with those applied by the relevant Company in respect of the two preceding financial years.

  

	(B)	The Accounts of Unipath B.V. were prepared (i) in all material respects in accordance with the accounting principles and practices set out in the Unilever Accounting Manual, and
(ii) on bases and in accordance with policies substantially consistent with those applied by Unipath B.V. in respect of the two preceding financial years. On that basis, the Accounts of Unipath B.V. fairly state, in all material respects, the assets
and liabilities of Unipath B.V. as at the Accounts Date and the results of its business for the year ended on the Accounts Date. 

  

	(C)	 The US Balance Sheet was prepared in all material respects in accordance with the accounting principles and practices set out in the Unilever Accounting Manual. On
that 

  

 106 

	 	 
basis, the US Balance Sheet fairly states, in all material respects, the assets and liabilities of the US Business as at the Accounts Date.

  

	(D)	The Management Accounts were prepared in all material respects in accordance with the management accounting principles and practices set out in the Unilever Accounting Manual. On
that basis, the Management Accounts fairly state, in all material respects, the total net proceeds of sale, gross profit, market development cost and trading result of the Transferring Business for the year ended on the Accounts Date and for the
period from 1st January, 2001 to 29th September, 2001. 

  

	(E)	The Management Accounts were: 

  

	 	(i)	extracted with due care and attention from the underlying books of account of the Transferring Business; and 

  

	 	(ii)	prepared on a basis substantially consistent with the respective management accounts prepared for the Transferring Business in respect of the two years preceding the year ended on
the Accounts Date. 

  

	(F)	The October Management Accounts were prepared in good faith and with reasonable care on a basis substantially consistent with the respective management accounts prepared for the
Transferring Business in respect of the two years preceding the year ended on the Accounts Date and in all material respects in accordance with the management accounting principles and practices set out in the Unilever Accounting Manual.

  

	(G)	The accounting records of the Companies and the US Business have been kept on a proper and consistent basis (no material change in the methods or bases of valuation or accountancy
treatment having been made for the two years prior to the Accounts Date or since), are up-to-date and contain all material matters required by law to be entered in them. 

  

	(H)	Each of the line items shown in columns 3 (FY00) and 4 (YTD FY01) of the table on page 49 of the PwC Due Diligence Report from “Trading Result before ei’s” to
“Total Adjustments” (inclusive) represents the complete and correct extraction for that line item from the management accounts of the Transferring Business for the year to 31st December, 2000 and the six months to 30th June, 2001.

  

	(I)	Without regard to the reasonableness or completeness of such items as adjustments to EBIT (earnings before interest and tax), each of the line items shown in columns 3 (Actual FY00)
and 4 (Actual Jun-01) of the “Quality of Earnings” table on page 48 of the PwC Due Diligence Report from the items “Persona provision” to “Bonus provision” (inclusive, but excluding, for the avoidance of doubt,
“Proforma pension adjustment” and “Proforma research cost adjustment”) has been correctly extracted from the management accounts (or supporting schedules of the management accounts) of the Transferring Business for the year to
31st December, 2000 and the six months to 30th June, 2001. 

  

 107 

	7.	EVENTS SINCE 31ST DECEMBER, 2000 

  
 Since 31st December, 2000:- 
  

	 	(i)	there has been no material adverse change in the overall financial or trading position of either the Transferring Business or the US Business; 

  

	 	(ii)	the Transferring Business has been carried on, in all material respects, in the ordinary and usual course so as to maintain it as a going concern and in substantially the same
manner (including nature and scope) as in the year to 31st December, 2000 including managing its working capital in all material respects consistently with past practice and not entering into material commitments or transactions other than in the
ordinary course of business; 

  

	 	(iii)	no part of the Transferring Business has been materially and adversely affected by the loss of any contract, customer or source of supply; 

  

	 	(iv)	no securities (within the meaning of Part VI of the Taxes Act) issued by any Company and remaining in issue at the date of this Agreement have been issued in such circumstances that
any interest or other distribution out of assets in respect thereof falls to be treated as a distribution under sections 209(2)(d), (da) or (e) Taxes Act, nor has any of the Companies agreed to issue securities (within that meaning) in such
circumstances; 

  

	 	(v)	there has been no material change in the policy (or application of any policy) regarding the collection or settlement of receivables or payables in respect of the US Business;

  

	 	(vi)	there has been no sale by or on behalf of the Transferring Business of any fixed asset with a market value in excess of £10,000 individually such that the aggregate of the
market value of all such fixed assets sold exceeds £250,000; 

  

	 	(vii)	there has been no payment by or on behalf of the Transferring Business in settlement of any third party claim or litigation of more than £150,000 in aggregate;

  

	 	(viii)	no agreement has been entered into by or on behalf of the Transferring Business to do anything referred to in sub-paragraph (vi) or (vii); and

  

	 	(ix)	no Company (or any relevant member of the Vendor’s Group in relation to the US Business) has entered into or agreed to enter into any capital commitment in excess of
£50,000 individually such that the aggregate of all such capital commitments exceeds £250,000. 

  

 108 

	8.	CONTRACTS AND COMMITMENTS 

  

	(A)	Each of the Material Contracts falling within limb (a) of the definition of such contracts as set out in Schedule 1 (Interpretation) is either listed in the Data Room Index
or a complete copy thereof is contained in the Disclosure Bundle. 

  

	(B)    (i)	No Company nor, in relation to the US Business, any member of the Vendor’s Group is in breach of a Material Contract where such breach is likely to give rise to a liability in
excess of £250,000 or would otherwise have a material adverse effect on the Transferring Business; 

  

	 	(ii)	the Vendor is not aware of any breach of a Material Contract by another party to such contract; and 

  

	 	(iii)	other than in relation to breach (where sub-paragraph (i) or (ii) applies) the Vendor is not aware of any invalidity or grounds for determination, rescission,
avoidance or repudiation of any Material Contract except for any Contract relating to IT Systems. 

  

	(C)	So far as it is material, no Company nor, in relation to the US Business, any member of the Vendor’s Group has since 31st December, 2000 manufactured, developed, sold or
provided any product (i) which does not comply with all applicable laws and regulations or (ii) which is defective or dangerous or not in accordance with any representations or warranties (express or implied) given in respect of it.

  

	(D)	No Company nor any member of the Vendor’s Group which is engaged in carrying on the Transferring Business is a party to any agreement which materially restricts its freedom to
carry on the Transferring Business in any part of the world in such manner as it thinks fit. 

  

	(E)	Save as set out in the Disclosure Letter and specifically referenced to this Warranty, no consent or agreement of any third party is required: 

  

	 	(i)	to effect the transfer of any US Business Asset (other than the benefit of a US Contract), any Business IPR or any domain name listed in Schedule 14 (Domain Names); or

  

	 	(ii)	to enable the relevant Designated Purchaser to perform any US Contract or IP Licence (excluding software licences) after Completion or to enable the Vendor or any member of the
Vendor’s Group to transfer, or to procure the transfer of, the benefit or burden of any US Contract or IP Licence (excluding software licences) to the relevant Designated Purchaser, 

  
 in either case, in accordance with the terms of this Agreement. 

 

	(F)	 The execution and delivery of this Agreement and the other Specified Agreements and the performance by each relevant member of the Vendor’s Group of its
obligations hereunder and thereunder will not relieve any other party to a Material Contract with a 

  

 109 

	 	 
Company of its obligations or enable the party to vary or terminate its rights or obligations under that Material Contract. 

  

	(G)	No member of the Vendor’s Group is in breach of any US Contract (excluding any US Contract relating to IT Systems). 

  

	9.	POWERS OF ATTORNEY 

  
 No Company nor any member of the Vendor’s Group (in relation to the Transferring Business) has given any power of attorney or other authority
(express, implied or ostensible) which is still outstanding or effective to any person to enter into any contract or commitment on its behalf other than any such other authority (not being a written power of attorney) to its Employees to enter into
routine trading contracts in the normal course of their duties. 
  

	10.	GRANTS AND ALLOWANCES 

  
 Details of all current governmental grants, allowances, aids and subsidies paid or made available in relation to the Transferring Business and of all
outstanding claims for any such grant, allowance, aid or subsidy from any supranational, national or local authority or government agency are set out in the Disclosure Letter. 
  

	11.	LICENCES 

  
 All governmental, statutory or regulatory licences, consents and other permissions and approvals required for or in connection with the carrying on of the
Transferring Business as carried on at the date of this Agreement the absence of which would have a material adverse effect on the Transferring Business are held by the Companies or, in relation to the US Business, by the US Business Seller and, so
far as the Vendor is aware, there is no circumstance which indicates that any such licence, consent, permission or approval is likely to be revoked, suspended, modified or not renewed. 
  

	12.	BANK ACCOUNTS AND BORROWINGS 

  

	(A)	Full details of all bank accounts maintained or used by each Company (including, in each case and, without limitation, the name and address of the bank with whom the account is kept
and the number and nature of the account) and statements on the accounts maintained by the Companies as at the close of business on 17th December, 2001 are included at tab 12 of the Disclosure Bundle. Since the date of each statement no payment out
of any of the accounts has been made, except for routine payments in the ordinary course of business. 

  

	(B)	 Full details of all overdraft, loan and other financial facilities available to any of the Companies or, in relation to the US Business, to any member of the
Vendor’s Group (other than overdraft, loan and other financial facilities made available by members of the Vendor’s Group) and the amounts outstanding under them as at the close of business on 17th December, 2001 are set out in or attached
to the Disclosure Letter. Since the close of business on 17th December, 2001 and other than in the ordinary 

  

 110 

	 	 
course of business there has been no material increase in the amounts outstanding under such overdraft, loan and other financial facilities.

  

	(C)	Except for the borrowings referred to in sub-paragraphs (A) and/or (B) and borrowings from members of the Vendor’s Group, no Company nor, in relation to the US
Business, any member of the Vendor’s Group has outstanding any loan capital or incurred or agreed to incur any borrowing which it has not repaid or satisfied, or has lent or agreed to lend any money which has not been repaid to it or is a party
to or has any obligation, under:- 

  

	 	(i)	any loan agreement, debenture, acceptance credit facility, bill of exchange, promissory note, finance lease, debt or inventory financing, discounting or factoring arrangement or
sale and lease back arrangement; or 

  

	 	(ii)	any other arrangement the purpose of which is to raise money or provide finance or credit. 

  

	(D)	No event which is:- 

  

	 	(i)	an event of default under; or 

  

	 	(ii)	a material breach by any of the Companies or, in relation to the US Business, by any member of the Vendor’s Group of, 

  
 any of the terms of any loan capital, borrowing, debenture or financial
facility of any of the Companies or, in relation to the US Business, any member of the Vendor’s Group has occurred and is continuing. 
  

	13.	INSOLVENCY 

  

	(A)	No order has been made and no resolution has been passed for the winding up of any Company or any relevant member of the Vendor’s Group or for a provisional liquidator to be
appointed in respect of any Company or any relevant member of the Vendor’s Group and no petition has been presented and no meeting has been convened for the purpose of winding up any Company or any relevant member of the Vendor’s Group.

  

	(B)	No administration order has been made and no petition for such an administration order has been presented in respect of any Company or any relevant member of the Vendor’s
Group. 

  

	(C)	No receiver (which expression shall include an administrative receiver) has been appointed in respect of any Company or any relevant member of the Vendor’s Group or in respect
of any part of the assets or undertaking of any Company or any relevant member of the Vendor’s Group. 

  

	(D)	No Company nor any relevant member of the Vendor’s Group is insolvent or unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 or has stopped
paying its debts as they fall due. 

  

 111 

	(E)	Neither in respect of any of the Companies nor in respect of any relevant member of the Vendor’s Group has: 

  

	 	(i)	any voluntary arrangement been proposed or implemented under section 1 of the Insolvency Act 1986; or 

  

	 	(ii)	any scheme of arrangement under section 425 of the Companies Act 1985 nor any scheme for the benefit of creditors generally been proposed or implemented, whether or not under the
protection of the Court and whether or not involving a reorganisation or a rescheduling of debt. 

  

	(F)	No event analogous to any of the foregoing has occurred in relation to any of the Companies or any relevant member of the Vendor’s Group incorporated outside England and Wales.

  

	(G)	No unsatisfied judgment, judicial order or judicial award is outstanding against any Company or any relevant member of the Vendor’s Group and no written demand under section
123(1)(a) of the Insolvency Act 1986 has been made against any Company or any relevant member of the Vendor’s Group, no distress or execution has been levied on any asset of any Company or any relevant member of the Vendor’s Group and no
event analogous to such events has occurred in relation to any of the Companies incorporated outside England and Wales. 

  
 For the purposes of this Warranty 13, a “relevant member of the Vendor’s Group” is a member of the Vendor’s Group which
is to transfer Shares, the Bedford Property, US Business Assets, IP Assets or Monoclonal Assets pursuant to this Agreement. 
  

	14.	LITIGATION 

  

	(A)	No Company nor any member of the Vendor’s Group (in relation to the Transferring Business) is engaged in any litigation, arbitration or administrative or criminal proceedings
(“Litigation”), whether as plaintiff, defendant or otherwise. 

  

	(B)	No Litigation by or against any of the Companies or any member of the Vendor’s Group (in relation to the Transferring Business) is, so far as the Vendor is aware, pending,
threatened or expected and, so far as the Vendor is aware, there is no fact or circumstance likely to give rise to any such Litigation, in each case where, if such Litigation were determined adversely to that Company or that member of the
Vendor’s Group, such determination would have a material adverse effect on the Transferring Business. 

  

	15.	DELINQUENT AND WRONGFUL ACTS 

  

	(A)	 No Company nor any member of the Vendor’s Group (in relation to the Transferring Business) nor any of their respective officers, agents or employees (in the
course of their duties) has done or omitted to do anything which is a contravention of any statute, law or regulation in any relevant jurisdiction which is likely to give rise to any fine, 

  

 112 

	 	 
penalty or other liability or sanction on any Company or any such member of the Vendor’s Group. 

  

	(B)	No notice has been received by any Company (or any member of the Vendor’s Group in relation to the Transferring Business), nor is any Company (or any member of the
Vendor’s Group in relation to the Transferring Business) otherwise aware, that an investigation, inquiry or enforcement process is being conducted or undertaken by any governmental, administrative, regulatory or other body in respect of the
Transferring Business and, so far as the Vendor is aware, there are no circumstances which are likely to give rise to any such investigation, inquiry or enforcement process. 

  

	(C)	Except for (i) the Reorganisation, (ii) Permitted Encumbrances and (iii) equipment or real property leases entered into by any of the Companies or, in respect of the Transferring
Business, any member of the Vendor’s Group, no Company nor any such member of the Vendor’s Group has been party to a transaction pursuant to, or as a result of, which an asset owned, purportedly owned or otherwise held by any Company or
comprised within the Transferring Business or any of the Shares or shares in the Subsidiary is liable pursuant to the law or regulation of any relevant jurisdiction to be transferred or re-transferred to another person (or which gives rise to a
right of compensation or other payment in favour of another person in lieu of such transfer or re-transfer) under the law or regulation of any relevant jurisdiction where such transfer or re-transfer (or right of compensation or other payment in
lieu of such transfer or re-transfer) would have a material adverse effect on the Transferring Business. 

  

	16.	PLANT AND MACHINERY IN WORKING ORDER 

  
 Each item of the Transferring Business Plant and Machinery in respect of which, if such item were to fail to function properly, such failure would have a
material adverse effect on the Transferring Business: 
  

	 	(i)	is in reasonable repair and condition; 

  

	 	(ii)	is in satisfactory working order; and 

  

	 	(iii)	has been properly serviced and maintained where applicable, 

  
 in each case, subject to fair wear and tear and age. 
  

	17.	BOOK DEBTS 

  

	(A)	The Vendor has no reason to believe that any debt in excess of £250,000 owing to any Company or, in relation to the US Business, to any member of the Vendor’s Group at
the date of this Agreement (other than the debts included in the Accounts) will not in the ordinary course of collection realise its nominal amount plus any accrued interest. 

  

	(B)	 Each debt in excess of £250,000 included in the Accounts has realised or, to the extent not realised at the Completion Date, the Vendor has no reason to
believe that any such debt will not realise, in the ordinary course of collection, its nominal amount plus any 

  

 113 

	 	 
accrued interest less any provisions for bad and doubtful debts included in the Accounts. 

  

	18.	DIVIDENDS 

  
 Except for the Reorganisation, all dividends (including, without limitation, dividends satisfied in kind or of or including a non-cash asset) declared,
made or paid by each Company since the date falling five years before the date of this Agreement have been declared, made and paid in accordance with law and its articles of association (or equivalent documents), and all other distributions
declared, made or paid by each Company in such period, the declaration, making or payment of which other than in compliance with law or the relevant Company’s articles of association (or equivalent documents) would have a material adverse
effect on the Transferring Business, have been declared, made and paid in accordance with law and its articles of association (or equivalent documents). 
  

	19.	OWNERSHIP OF PROPERTIES 

  

	(A)	The Properties are the only material Properties owned, used or occupied in relation to the Transferring Business or in which the Companies or, in relation to the US Business,
members of the Vendor’s Group have any estate, interest, right or liability. 

  

	(B)	In relation to each of the Properties:- 

  

	 	(i)	the company named in Schedule 9 (Properties) as its owner is solely legally and beneficially entitled to the Property and has good and marketable title to it;

  

	 	(ii)	the company named in Schedule 9 (Properties) as its owner has under its control all of the title deeds necessary to prove its title to the Property; 

 

	 	(iii)	the company named in Schedule 9 (Properties) as its owner holds the Property subject to the Lettings but is otherwise in physical possession and exclusive occupation of the
Property; 

  

	 	(iv)	there are no liens, mortgages, charges, encumbrances or third party rights of any kind whatsoever affecting the Property; 

  

	 	(v)	there are no agreements for sale, agreements for lease, estate contracts, options or rights of pre-emption affecting the Property; 

  

	 	(vi)	there is no outstanding written notice alleging breach of any covenants, restrictions and other encumbrances affecting the Property; 

  

	 	(vii)	the Property is not subject to the payment of any outgoings other than rates, water rates (and in the case of leasehold the rents and other sums reserved by the Lease) all of which
due to date have been paid; 

  

 114 

	 	(viii)	there is no action, claim, proceeding, demand or dispute in respect of the Property or its use; 

  

	 	(ix)	so far as the Vendor is aware, the current use of the Property is the permitted or lawful use under town and country planning, zoning or equivalent legislation and no material
breach of such legislation has been committed nor has any notice of breach of such legislation been received which remains undischarged; 

  

	 	(x)	the company named in Schedule 9 (Properties) as its owner has complied in all material respects with its repairing obligations under the Leases. 

  

	(C)	In relation to each of the Properties referred to in Schedule 9 (Properties) which is leasehold: 

  

	 	(i)	the Property is held under the terms of the lease briefly referred to in Schedule 9 (Properties) and no licences or collateral assurances, undertakings or concessions have
been granted outside the usual course of business; 

  

	 	(ii)	the owner referred to in Schedule 9 (Properties) has not defaulted in the payment of rent due and payable under the terms of the Lease. 

  

	(D)	The information provided by the Vendor in replies to enquiries relating to the Bedford Property (copies of which are annexed to the Disclosure Letter) is true and accurate in all
material respects. 

  

	20.	DATA PROTECTION 

  
 Each Company and, in relation to the US Business, each relevant member of the Vendor’s Group is in all material respects in compliance with all data
protection and all other requirements relating to privacy or to protection, use or processing of personal data which are applicable to it including, without limitation, the Data Protection Acts 1984 and 1998. 
  

	21.	INTELLECTUAL PROPERTY AND INFORMATION TECHNOLOGY 

  

	(A)	Details of all registered Company IPR (and all applications for registration comprising part of Company IPR) and all registered Business IPR (and all applications for registration
comprising part of Business IPR) are set out in the Disclosure Letter and such Intellectual Property is owned legally and beneficially and exclusively by the Company or member of the Vendor’s Group identified as owning it in the Disclosure
Letter and the Company IPR is free of all charges, options, liens, equities and encumbrances, save for any agreement disclosed against Warranty 21(C) and any non-exclusive, non-material IP Licences granted by the Companies in the ordinary course of
the Transferring Business. All material unregistered Business IPR and material unregistered Company IPR is owned legally and beneficially and exclusively by a member of the Vendor’s Group or a Company (as appropriate). 

 

 115 

	(B)	All renewal fees and other official registry fees due and payable at the date of Completion in respect of the rights referred to in the first sentence of sub-paragraph (A)
have been paid. All steps reasonably required to be taken before Completion for the prosecution and maintenance of patents and patent applications of such Company IPR and Business IPR have been taken. 

  

	(C)	Each of the material licences and other material agreements relating to Intellectual Property or know-how (excluding computer software) granted to or by any Company or to or by any
member of the Vendor’s Group in relation to the Transferring Business is either listed in the Data Room Index (with a complete copy contained in the Data Room) or a complete copy is contained in the Disclosure Bundle. 

 

	(D)	None of the Companies nor any member of the Vendor’s Group nor, so far as the Vendor is aware, any other party is in breach of any licence or other agreement relating to
Intellectual Property or know-how (excluding computer software) granted to or by any Company, or to or by any member of the Vendor’s Group in relation to the Transferring Business. 

  

	(E)	So far as the Vendor is aware, there is no unauthorised use or infringement by any person of the Company IPR, the Business IPR, or know-how proprietary to a member of the
Vendor’s Group which is used in the Transferring Business or know-how proprietary to any of the Companies, where the value of the claim in respect of such infringement or unauthorised use is material in monetary terms (having regard to the size
of the Transferring Business) or where such infringement or unauthorised use is, if continued, likely to have a material adverse effect on the Transferring Business. 

  

	(F)	So far as the Vendor is aware, the operations of the Transferring Business do not infringe or make unauthorised use of any Intellectual Property or know-how of any third party.

  

	(G)	No Company has disclosed any of its proprietary know-how (which at the time of disclosure was confidential and material to the Transferring Business) to a third party except under
an obligation of confidentiality and no member of the Vendor’s Group has disclosed any of its proprietary know-how relating to the Transferring Business (which at the time of disclosure was confidential and material to the Transferring
Business) to a third party except under an obligation of confidentiality. 

  

	(H)	No Company nor any member of the Vendor’s Group has received written notice of any, and so far as the Vendor is aware there are no, oppositions or actions in existence or
threatened for cancellation, revocation or challenging the validity or title in relation to any of the registered Intellectual Property referred to in the first sentence of sub-paragraph (A). 

  

	(I)	The Intellectual Property referred to in the first sentence of sub-paragraph (A) is subsisting and has not lapsed or been cancelled. 

  

	(J)	 The Business IPR, the Company IPR and the Shared IPR is all the Intellectual Property currently owned by members of the Vendor’s Group: (i) which has been used

  

 116 

	 	 
commercially by or for the Transferring Business; or (ii) which is material to any research or development program of the Transferring Business, in each
case, at or during the 36 months prior to the date of this Agreement 

  

	(K)	There are no orders, decrees, injunctions, judgments or other decisions by any court, arbitration, administrative or other tribunal of competent jurisdiction delivered prior to the
date of this Agreement and still in force, restricting the rights of the Companies or any member of the Vendor’s Group (as appropriate) in respect of the Company IPR or the Business IPR. 

  

	(L)	So far as the Vendor is aware, all know-how and Intellectual Property arising from the research and development carried on at the Bedford Property in the 36 months prior to
Completion is owned by the Companies except where otherwise provided for in agreements which are included in the Data Room. 

  

	(M)	The Business IPR includes (i) all trade marks owned by a member of the Vendor’s Group which are used in the Transferring Business (excluding the Unilever Marks); and (ii) all
Intellectual Property owned by a member of the Vendor’s Group which is material to any products sold by the Transferring Business at the date of this Agreement . 

  

	(N)	The Monoclonal Assets set out in Attachment 7 are all the antibody clones and other cell lines owned by a Company or owned by or licensed to any member of the Vendor’s Group
and (i) used commercially by or for the Transferring Business, or (ii) material to any research or development program material to the Transferring Business, in each case, at or during the 36 months prior to the date of this Agreement.

  

	(O)	There have been no downtimes, equipment breakdowns or malfunctions, data loss or failures or defects in the IT Systems in the 12 months prior to the date of this Agreement which
have had a material adverse effect upon the business of any Company or on the US Business. 

  

	(P)	Part 21 (P) of the Disclosure Letter contains a list of all the material licences to the Vendor’s Group of computer software which relate to the Transferring Business, and
correctly identifies those: (i) which will not be assigned to the Purchaser at Completion; and (ii) which will be assigned to the Purchaser but require a third party consent to such assignment. 

  

	(Q)	None of the Companies nor so far as the Vendor is aware any other party is in breach of any agreement relating to the IT Systems which is material to the Transferring Business and
to which a Company is a party and no such agreement is capable of termination (other than by the relevant Company) as a result of completion of the transaction contemplated by the Agreement. No member of the Vendor’s Group nor, so far as the
Vendor is aware, any other party, is in breach of any agreement relating to the IT Systems and to which a member of the Vendor’s Group is a party and no such agreement which is material to the Transferring Business is capable of termination
(other than by the relevant member of the Vendor’s Group) as a result of completion of the transaction contemplated by the Agreement (excluding any agreement set out in paragraph 21(S) of the Disclosure Letter). 

  

 117 

	(R)	The Domain Names comprise all domain names: (i) used in the Transferring Business; and (ii) the rights to which are held by any member of the Vendor’s Group and incorporating
any trade mark (other than the Unilever Marks) used in the Transferring Business. All fees and necessary administrative steps required before Completion to maintain such Domain Names have been paid or taken. 

  

	(S)	Part 21 (S) of the Disclosure Letter contains a list of assets and agreements (excluding licences of computer software) forming part of the IT Systems which are owned or held by a
member of the Vendor’s Group and which will not be sold or assigned (as appropriate) to the Purchaser. 

  

	(T)	The cash receipts (gross of any amounts due to Tax, including, without limitation, any withholding tax) from the licensing of Business IPR pursuant to the IP Licences listed in
Attachment 15 for the 11 month period to 1st December, 2001 is no less than the amount which is £50,000 less than £5,170,000 and such amount represents the full amount of the income received by the Companies or any member of the
Vendor’s Group pursuant to those licences of Business IPR for such period. 

  
 In this paragraph 21, “IT Systems” means the systems comprising all software, hardware, communications and network equipment and all associated items used by (i) any Company or (ii) any member
of the Vendor’s Group in relation to the Transferring Business. 
  

	22.	COMPETITION AND TRADE REGULATION LAW 

  

	(A)	So far as the Vendor is aware, no Company nor any member of the Vendor’s Group (in relation to the Transferring Business) is or has been a party to any agreement, arrangement,
concerted practice or course of conduct which infringes Article 81 or 82 (formerly Articles 85 and 86 respectively) of the Treaty Establishing the European Community or any other competition or similar legislation in any jurisdiction in which it
carries on business or has any assets or sales where such infringement is likely to cause a material loss or liability in respect of the Transferring Business; 

  

	(B)	No Company nor any member of the Vendor’s Group (in relation to the Transferring Business) is or has been a party to any agreement or arrangement or been involved in any
business practice in respect of which an undertaking has been given by or an order made against or in relation to it pursuant to any competition or similar legislation in any jurisdiction in which it carries on business or has any assets or sales
(including (without limitation) Article 81 or 82 (formerly Articles 85 and 86 respectively) of the Treaty Establishing the European Community) where such undertaking or order is likely to cause a material loss in respect of the Transferring
Business. 

  

	(C)	No Company nor any member of the Vendor’s Group (in relation to the Transferring Business) is or has been a party to any agreement or arrangement or been involved in any
business practice in respect of which: 

  

	 	(i)	any request for information, statement of objections or similar matter has been received from any court, tribunal, governmental, national or supra-national authority; or

  

 118 

	 	(ii)	an application for negative clearance or exemption has been made to the European Commission or any national competition authority. 

  

	(D)	No Company nor any member of the Vendor’s Group (in relation to the Transferring Business) is or has been within the five years preceding the date of this Agreement party to
any agreement, arrangement or concerted practice, or involved in any business practice or conduct, in respect of which early guidance, guidance, a decision, notice or direction has been sought, given or made pursuant to any competition or similar
legislation in any jurisdiction in which the Transferring Business is carried on. 

  

	23.	INSURANCES 

  
 Summary details of the insurance policies currently maintained by any of the Companies and/or any member of the Vendor’s Group in respect of the
Transferring Business are set out in the Disclosure Letter and, so far as the Vendor is aware, all such policies are in full force and effect, are not void or voidable (or subject to repudiation or rescission) and no claims are outstanding under
them in respect of the Transferring Business. 
  

	24.	EMPLOYMENT 

  

	(A)	A list as at 30th November, 2001 of the names, jobs, grades, salaries and other material emoluments of every Employee (with the exception of Senior Employees) and the date of
commencement of employment of every such Employee is set out at tab 17 of the Disclosure Bundle and neither the Companies nor any member of the Vendor’s Group have promised, proposed, assured or committed (in writing) to any Employee any
material change in such terms of employment or working conditions or regarding the continuance, introduction, increase or improvement of any benefit or discretionary practice and no negotiations have commenced in respect of any such matter.

  

	(B)	A list as at the date of this Agreement of the names, jobs and details of the terms of employment (including salary and other material emoluments and work level) of every Senior
Employee and the date of commencement of employment of every Senior Employee is set out at tab 17 of the Disclosure Bundle and neither the Companies nor any member of the Vendor’s Group have promised, proposed, assured or committed (in writing)
to any Senior Employee any material change in such terms of employment or working conditions or regarding the continuance, introduction, increase or improvement of any benefit or discretionary practice and no negotiations have commenced in respect
of any such matter. 

  

	(C)	With the exception of the Seconded Employees, the Employees appearing on the list referred to in sub-paragraphs (A) and (B) were all employed in the Transferring
Business on 30th November, 2001, there were no other persons so employed. 

  

 119 

	(D)	Short details of the terms of any consultancy agreements between each Company and any individual (whether or not an Employee) which have an outstanding term of six months or more
are contained in the Disclosure Letter. 

  

	(E)	So far as the Vendor is aware, no Senior Employee has given written notice terminating his contract of employment or is under notice of dismissal and no amount due to or in respect
of any such Senior Employee is in arrears and unpaid other than his salary for the month current at the date of this Agreement. 

  

	(F)	There is no material dispute and, during the period of two years prior to the date of this Agreement, there have been no material disputes, between any of the Companies or any
member of the Vendor’s Group and any trade union or other body representing the Employees or a substantial number of them existing, pending or threatened in writing. 

  

	(G)	There is no collective bargaining agreement (whether binding or not) to which any of the Companies or any member of the Vendor’s Group is a party in relation to the Employees.

  

	(H)	No material claims have been made during the period of two years prior to the date of this Agreement against any of the Companies or any member of the Vendor’s Group by or on
behalf of any Employee or any former employee of any of the Companies or the US Business, and the Vendor is not aware of any circumstances as a result of which such a material claim would be made. 

  

	(I)	The Data Room contains details of all share schemes (either contractual or discretionary) in which any of the Employees are entitled to participate. 

  

	(J)	All contractual terms and conditions and material, non-contractual policies, discretions and benefits applicable to the Employees have been disclosed. 

  

	(K)	The Vendor has complied with all obligations to inform and consult with or to notify any person or the Employees (to the extent required by local law) about the matters contemplated
by this Agreement, so far as it relates to any Employee, and within the relevant time limits imposed by local law. 

  

	(L)	Since 30th November, 2001 there has not been any change in the number of employees employed at each work level by the Companies or a member of the Vendor’s Group and engaged in
the Transferring Business (taken as a whole) such as would have a material adverse effect on the ability of the Purchaser and the other members of the Purchaser’s Group to operate the Transferring Business as carried on at the date of this
Agreement. 

  

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	25.	THE ENVIRONMENT 

  

	(A)	In this paragraph 25: 

  

			
	“Environment”	  	means all or any part of the air (including, without limitation, the air within buildings and the air within other natural or man-made structures above or below ground), water and land, and any
living organisms or systems supported by those media;
		
	“Environmental Laws”	  	means all applicable statutes and subordinate legislation and other national, federal, state and local laws, common laws and civil codes to the extent that they relate to Environmental Matters
and are in force and binding on the Companies or in respect of the US Business at or before the date of this Agreement;
		
	“Environmental Matters”	  	means all or any of the following:-
		
	 	  	 (i)     the release, spillage, deposit, escape, discharge, leak, emission, leaching, migration or presence of
Hazardous Substances; or

		
	 	  	 (ii)    the creation of or exposure to noise, vibration, odour, radiation or common law or statutory nuisance;
or

		
	 	  	 (iii)  worker health and safety; or

		
	 	  	 (iv)   other matters relating to the protection of the Environment which arise out of the generation, manufacturing, storage,
processing, treatment, keeping, handling, use, possession, supply, distribution, receipt, sale, purchase, import, export, removal, disposal or transportation of any Hazardous Substances;

		
	“Environmental Permits”	  	means any permit, licence, consent, authorisation, exemption or other approval required by Environmental Laws in relation to the operation as at the date of this Agreement of the Companies or
the US Business;
		
	“Hazardous Substances”	  	means anything which alone or in combination with other things is capable of causing harm to man or the Environment; and
		
	“Relevant Period”	  	means the period commencing 36 months before the date of this Agreement.

  

	(B)	The Companies and the US Business have all material Environmental Permits. The Companies comply, and the US Business is operated in compliance, in all material respects, with those
Environmental Permits. 

  

 121 

	(C)	The Companies have complied, and the US Business has been operated in compliance, in all material respects, for the duration of the Relevant Period, with Environmental Laws.

  

	(D)	There are no current or, so far as the Vendor is aware, pending or threatened, formal claims, investigations, litigation or other such proceedings by any relevant authority or other
third party against or involving any Company or the US Business which relate to Environmental Matters. 

  

	(E)	So far as the Vendor is aware, the execution or performance of this Agreement and all other documents contemplated herein will not, and change in control of the Companies and the US
Business will not, result in any Environmental Permits being revoked, suspended, cancelled, varied or renewed. 

  

	(F)	There have been no spills, leakages, escapes, or unlawful discharges or emissions of Hazardous Substances by the Companies or the US Business Seller at, in, under or from the
Properties or any property formerly owned by (i) the Companies, or (ii) the US Business Seller and used in the conduct or operation of the US Business (collectively referred to as “Relevant Releases”), which Relevant Releases
are likely to result in a material liability under Environmental Laws. 

  

	26.	THE ACCOUNTS AND TAX 

  

	(A)	No Company has any outstanding liability for Taxation (whether actual or contingent) assessable or payable by reference to profits, gains, income or distributions earned, received
or paid or arising or deemed to arise: 

  

	 	(i)	on or at any time prior to the date of this Agreement; or 

  

	 	(ii)	in respect of any period starting before the date of this Agreement, 

  
 that was shown to be due and payable on returns filed prior to the date of this Agreement. 
  

	(B)	The amount of the provision for deferred Taxation in respect of the Companies contained in the Accounts was, at the Accounts Date, adequate and in accordance with accountancy
practices generally accepted in the country in which the relevant Company was incorporated and commonly adopted by companies carrying on businesses similar to the business carried on by that Company. 

  

	(C)	If all facts and circumstances which are now known to each Company or the Vendor had been known at the time the Accounts were drawn up, the provisions for deferred Taxation that
would be contained in such Accounts would be no greater than the provision which is so contained. 

  

	27.	TAX EVENTS SINCE THE ACCOUNTS DATE 

  
 Since the Accounts Date: 
  

	 	(i)	no Company has declared, made or paid any Distribution (as defined in the Tax Covenant); 

  

 122 

	 	(ii)	no period of any Company by reference to which Tax is calculated has ended; 

  

	 	(iii)	there has been no disposal of any asset by any Company (including trading stock) or supply of any service or business facility of any kind (including a loan of money or the letting,
hiring or licensing of any property whether tangible or intangible) in circumstances where the consideration actually received or receivable for such disposal or supply was materially different to the consideration which could be deemed to have been
received for Tax purposes; 

  

	 	(iv)	no event has occurred which will give rise to a Tax liability on any of the Companies calculated by reference to deemed (as opposed to actual) income, profits or gains or which will
result in any of the Companies becoming liable to pay or bear Tax liability directly or primarily chargeable against or attributable to another person, firm or company other than any of the Companies; 

  

	 	(v)	no disposal has taken place or other event occurred which will or may have the effect of crystallising a liability to Taxation which should have been included in the provisions for
deferred Taxation contained in the Accounts if such disposal or other event had been planned or predicted at the Accounts Date; 

  

	 	(vi)	no Company has paid any interest or penalty in connection with any Tax, has otherwise paid any Tax after its due date for payment or owes any Tax the due date for payment of which
has passed or will arise in the thirty days after the date of this Agreement. 

  

	28.	TAX RETURNS, DISPUTES, RECORDS AND CLAIMS, ETC. 

  

	(A)	Each Company has duly and punctually made or caused to be made all proper returns required to be made prior to the date of this Agreement, and has duly and punctually supplied or
caused to be supplied all material information (including notices, statements, reports, computations, accounts and assessments) required to be supplied prior to the date of this Agreement, to any relevant Tax Authority within the last seven years
and has duly and punctually made all claims, disclaimers and elections which have been assumed to have been made for the purposes of the Accounts. 

  

	(B)	There is no material dispute or disagreement outstanding nor is any contemplated at the date of this Agreement between any Company and any Tax Authority regarding any matter falling
within paragraph 28(A) above or liability or potential liability to any Tax recoverable from each Company or regarding the availability of any relief from Tax to each Company. 

  

	(C)	 The amount of Tax chargeable on each Company during any accounting period ending on or within six years before the date of this Agreement has not, to any material
extent, depended on any concession, agreement or other formal or informal arrangement with any Tax Authority, including (but without limitation) the Inland Revenue or the Customs 

  

 123 

	 	 
and Excise and no Company has asked for any extensions of time for the filing of any tax returns or other documents relating to Tax.

  

	(D)	Each Company maintains complete and up to date information and records of all transactions and activities in which it has been involved up to and including the date of this
Agreement and of its Tax affairs up to and including the date of this Agreement which will be relevant for calculating any Tax liability of that Company: 

  

	 	(i)	for the first accounting period ending after Completion; and 

  

	 	(ii)	as required by law. 

  

	(E)	No Company has within the past six years paid or become liable to pay, nor, so far as the Vendor is aware are there any circumstances by reason of which it is likely to become
liable to pay any interest, penalty, surcharge or fine relating to Tax. 

  

	(F)	No Company has within the past twelve months been subject to or is currently subject to any non-routine investigation or audit by any Tax or excise authority, and the Vendor is not
aware of any such non-routine investigation or audit planned for the next twelve months. 

  

	(G)	The agreement dated 28th May, 1999 between, amongst others, the United Kingdom Inland Revenue, Unilever UK Central Resources Limited, Unipath Limited and Unipath Management Limited
is the only agreement entered into by any of the Companies pursuant to Section 36 Finance Act 1998. 

  

	29.	STAMP DUTY AND STAMP DUTY RESERVE TAX 

  

	(A)	All documents which are required to be stamped and by virtue of which any Company has any right have been duly stamped. 

  

	(B)	Since the Accounts Date no Company has incurred any liability to United Kingdom stamp duty reserve tax. 

  

	30.	VALUE ADDED TAX 

  

	(A)	Each Company is registered for the purposes of VAT and is not a member of a group of companies for VAT purposes. 

  

	(B)	Each Company has complied in all material respects with its obligations under any Tax legislation relating to VAT. 

  

	(C)	No Company owns any assets to which the provisions of Part XV Value Added Tax Regulations 1995 (the Capital Goods Scheme) apply. 

  

	(D)	 No Company nor any relevant associate of that Company (within the meaning of paragraph 3(7) of Schedule 10 to VATA 1994) has been a party to any arrangement 

  

 124 

	 	 
relating to an election in accordance with paragraphs 2 and 3 of Schedule 10 to VATA 1994. 

  

	(E)	No act or transaction has been effected in consequence of which any Company is or may be held liable for any VAT under section 47, section 48 or section 55 VATA 1994 (agents etc.,
tax representatives and customer accounting on supplies of gold) or section 29 VATA 1994 (self-billing) and no direction affecting any of the Companies has been given under paragraph 2 of Schedule 6 to VATA 1994. 

  

	(F)	No Company is or was partially exempt in its current or preceding VAT year and so far as the Vendor is aware there are no circumstances by reason of which any Company might not be
entitled to credit for all VAT chargeable on supplies received and imports and acquisitions made (or agreed or deemed to be received or made) by it since the beginning of its earliest VAT year to include a period since the Accounts Date and so far
as the Vendor is aware there are no circumstances by reason of which either regulation 107 or 108 Value Added Tax Regulations 1995 might apply (or have since the Accounts Date) applied to any Company. 

  

	(G)	No direction has been or could have been made to any Company under paragraph 1 of Schedule 6 or paragraph 1 of Schedule 7 to VATA 1994. 

  

	(H)	No Company has at any time been required to give security under paragraph 4 of Schedule 11 to VATA 1994. 

  

	(I)	The Disclosure Letter contains full particulars of all claims which have been or could be made by a Company under section 78 or section 79 VATA 1994. The Vendor is not aware of any
circumstances by reason of which an assessment under section 78A VATA 1994 has been or could be made on a Company. 

  

	(J)	The Disclosure Letter contains full particulars of all claims which have been made under section 36 VATA 1994 and the Vendor is not aware of any existing circumstances by virtue of
which any refund of VAT obtained or claimed may be required to be repaid. The Vendor is not aware of any circumstances by virtue of which there could be a clawback of input tax from any Company under section 36(4A) VATA 1994.

  

	31.	DUTIES ETC. 

  
 All VAT, import duty and other Taxes or charges payable to any Tax Authority (including, but without limitation, to H.M. Customs and Excise) upon the
importation of goods and all excise duties payable to any Tax Authority (including, but without limitation, to H.M. Customs and Excise) in respect of any assets (including trading stock) imported owned or used by each Company have been paid in full.

  

	32.	DEDUCTIONS AND WITHHOLDINGS 

  
 During the last six years, each Company has made all deductions (including amounts required to be withheld) in respect, or on account, of any Tax from any
payments made by it which it is obliged by law or entitled to make and has accounted in full to the 

  

 125 

 
appropriate Tax Authority for all amounts in respect of Taxation (other than amounts which have not yet become due to be paid) so deducted or withheld.

  

	33.	RESIDENCE 

  
 Each Company is solely resident for Tax purposes in the jurisdiction or jurisdictions specified in relation to it in Schedule 3 (Information about
the Companies) and has not since incorporation been resident in any other jurisdiction for such purposes. The US Business Seller is solely resident for tax purposes in the United States and has not since incorporation been resident in any other
jurisdiction for such purposes. 
  

	34.	TAX ON DISPOSAL OF ASSETS OR DEBTS 

  

	(A)	In respect of a disposal by any of the Companies of an asset which it owns at the date of this Agreement:- 

  

	 	(i)	for a consideration equal to the value attributable to that asset in preparing the Accounts (if it was owned by that Company on the Accounts Date) the Taxation liability of the
relevant Company thereby incurred will not exceed the amount taken into account in respect of that asset in computing the maximum liability for deferred Taxation as stated in the Accounts; and 

  

	 	(ii)	for a consideration equal to that for which the asset was acquired (if it was acquired after the Accounts Date) no liability to Taxation would be incurred by the relevant Company.

  

	(B)	So far as the Vendor is aware, no taxable profit or gain would accrue on the disposal or settlement of any debt owed by any Company at the value of that debt adopted for the
purposes of the Accounts. 

  

	35.	GROUP RELIEF 

  
 The Disclosure Letter details all relevant surrenders of or claims for group relief or advance corporation tax which affect any of the Companies for
accounting periods in respect of which no final agreement has been reached with the relevant Tax Authority as to its Tax affairs or which were made in the seven years ending with the date of this Agreement. 
  

	36.	INTRA-GROUP TRANSACTIONS 

  
 Save in respect of the Reorganisation, no Company owns any asset which it acquired within the period of six years ending on the date of this Agreement
from another company which was at the date of acquisition a member of the same group of companies as that Company. 
  

 126 

	37.	US BUSINESS ASSETS AND MONOCLONAL ASSETS 

  
 No liens for Taxes exist with respect to any of the US Business Assets or any of the Monoclonal Assets except for statutory liens for Taxes not yet due or
payable or liens for Taxes being contested in good faith by appropriate proceedings. 
  

	38.	LOAN RELATIONSHIPS 

  
 All interest, discounts or premiums paid by either Unipath Limited or Unipath Management Limited prior to the date of this Agreement in respect of its
loan relationships within the meaning of Chapter II of Part IV of the Finance Act 1996 are capable of being brought into account by that company as a debit for the purposes of that Chapter as and to the extent that they are from time to time
recognised in that Company’s accounts (assuming that the accounting policies and methods adopted for the purpose of the Accounts continue to be so adopted). 
  

	39.	NON-DEDUCTIBLE REVENUE OUTGOINGS 

  
 Without prejudice to paragraph 40 below, so far as the Vendor is aware, no Company has since the Accounts Date made a payment in excess of
£50,000 or is under any obligation to make any future payment in excess of £50,000, which in either case will be prevented (whether on the grounds of being a distribution or for any other reason) from being deductible for the purposes of
corporation tax or the corresponding Tax on profits in a relevant foreign jurisdiction, either in computing the profits of the relevant Company or in computing corporation tax or the corresponding Tax chargeable on such Company. 
  

	40.	NON-DEDUCTIBLE ROYALTY PAYMENTS 

  
 To the extent that any part of the £1,282,000 representing the accrual for the “Clearblue royalty” identified within the general provision
of £1,619,008 in the Tax return of the Subsidiary for the period ended on the Accounts Date are paid or are payable after 31st December, 2001, such amounts will be fully deductible for the purposes of corporation tax or the corresponding Tax
on income, profits and gains in a relevant foreign jurisdiction for the period in which the amounts are paid, in computing the profits of the Subsidiary (or any other Company that makes such payments) for that period. 
  

	41.	ROLL-OVER AND HOLD-OVER CLAIMS 

  
 No Company has since the Accounts Date made any hold-over or roll-over claims or elections under sections 23, 152-162, 165, 247, 247A or 248 of the
Taxation of Chargeable Gains Act 1992 (or the equivalent statutory provisions in any jurisdiction other than the United Kingdom). 
  

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 SCHEDULE 7 
 (Limitations on Liability) 
  

	1.	LIMITATION ON QUANTUM AND GENERAL 

  

	(A)	Neither the Purchaser nor any other Designated Purchaser shall be entitled in any event to damages or other payment in respect of any claim under any of the Warranties or the Tax
Covenant: 

  

	 	(i)	in respect of any individual substantiated claim for less than £50,000 (and for this purpose a series of claims with respect to related facts or circumstances shall be
aggregated and treated as an individual claim); and 

  

	 	(ii)	unless and until the aggregate amount of all substantiated claims (taking no account of those falling within (i) above) exceeds £1,000,000 (in which event the Purchaser shall
be entitled to recover the full amount in respect of all such claims and not merely the amount in excess of £1,000,000). 

  
 For the purposes of this sub-paragraph (A) a “substantiated claim” shall be a claim to the extent it is admitted, agreed or satisfied by
the Vendor, a Share Seller, the US Business Seller or an IP Asset Seller (as appropriate), is proven in a court of competent jurisdiction, is settled or is the subject of consent to the entry of judgment. 
  

	(B)	The total aggregate liability of the Vendor, the Share Sellers, the US Business Seller and the IP Assets Sellers under the Tax Covenant and the Warranties (including, without
limitation, any warranties implied by law to the extent not effectively excluded by this Agreement) shall not in any event exceed an amount equal to (i) £77,250,000, plus or minus (as the case may be) (ii) 75% of any adjustment
made to the Cash Consideration referred to in sub-clause 3(A) pursuant to the provisions of sub-clause 5(A)(i). 

  

	(C)	Each provision of this Schedule shall be read and construed without prejudice to each of the other provisions of this Schedule except to the extent specifically otherwise provided.

  

	(D)	As regards the Tax Covenant the provisions of this Schedule shall operate to limit the liability of the Vendor and the Share Sellers in so far as any provision in this Schedule is
expressed to be applicable thereto and the provisions of the Tax Covenant shall further operate to limit the liability of the Vendor and the Share Sellers in respect of any claim thereunder (provided that the effect of this paragraph (D) taken
together with the Tax Covenant shall not result in the double-counting of any limitation). 

  

	2.	TIME LIMITS FOR BRINGING CLAIMS 

  
 No claim shall be brought against the Vendor, the Share Sellers, the US Business Seller or the IP Assets Sellers in respect of any of the Warranties,
under the Tax Covenant or in respect of paragraph 16 of Schedule 8 unless the Purchaser shall have given to the Vendor written notice of such claim specifying (in reasonable detail (to the extent reasonably practicable)) the matter
which gives rise to the claim, the nature of the claim 

  

 129 

 
and the amount claimed in respect thereof (detailing (to the extent reasonably practicable) the Purchaser’s calculation of the loss thereby alleged to
have been suffered by it):- 
  

	 	(i)	subject to sub-paragraphs (ii) and (iii), on or before the second anniversary of the Completion Date; 

  

	 	(ii)	in respect of any claims under the Tax Warranties or the Tax Covenant on or before the seventh anniversary of the Completion Date; and 

  

	 	(iii)	in respect of any claims pursuant to paragraph 16 of Schedule 8, on or before the fifth anniversary of the Completion Date, 

  
 PROVIDED that, subject to sub-paragraphs 5(A) and (B), the
liability of the Vendor, the Share Sellers, the US Business Seller and the IP Assets Sellers in respect of such claim shall absolutely terminate (if such claim has not been previously satisfied, settled or withdrawn) if legal proceedings in respect
of such claim shall not have been commenced within 12 months of the service of such notice and for this purpose proceedings shall not be deemed to have been commenced unless they shall have been properly issued and validly served upon the Vendor,
the relevant Share Seller, the US Business Seller or the relevant IP Asset Seller (as the case may be). 
  

	3.	CONDUCT OF LITIGATION 

  

	(A)	As soon as reasonably practicable after the Purchaser or any member of the Purchaser’s Group receives or otherwise becomes actually aware of any assessment, claim, action or
demand by a third party (not being the Vendor or a member of the Vendor’s Group) (a “Third Party Claim”) which is reasonably likely to give rise to any claim in respect of any of the Warranties or pursuant to
paragraph 16 of Schedule 8, the Purchaser shall notify the Vendor in writing of such Third Party Claim. Such notice shall include such details of the Third Party Claim of which the Purchaser or any member of the Purchaser’s Group
is actually aware (including the quantum of the Third Party Claim, if known, and whether the Third Party Claim is (or is reasonably likely to be) an Insured Third Party Claim (as defined in sub-paragraph (G) below)) and which the Purchaser,
acting reasonably, considers relevant in order for the Vendor to evaluate the Third Party Claim and whether such Third Party Claim prima facie gives rise to a claim in respect of any of the Warranties or pursuant to paragraph 16 of Schedule 8.

  
 Any failure by the Purchaser to comply with
this sub-paragraph (A) shall not, for the avoidance of doubt, of itself prevent the Purchaser or the relevant Designated Purchaser from bringing a Warranty claim but none of the Vendor, the Share Sellers, the US Business Seller or the IP
Asset Sellers shall be liable to the Purchaser or the relevant Designated Purchaser in respect of such Warranty claim to the extent that the amount of it is increased, or not reduced, as a result of such failure. 
  

	(B)	 Subject to the provisions of paragraph (C) below, the Purchaser shall, and shall procure that any relevant member of the Purchaser’s Group shall, take
such action as is reasonable in order to avoid, dispute, resist, mitigate or defend the Third Party Claim 

  

 130 

	 	 
(and any related action) with reasonable diligence. With respect to the conduct of a Third Party Claim by the Purchaser, the Purchaser undertakes that:

  

	 	(i)	it shall notify the Vendor in writing of the legal counsel which the Purchaser or the relevant member of the Purchaser’s Group proposes to instruct with respect to the Third
Party Claim and such legal counsel shall be entitled to act in relation thereto (a) unless the Vendor reasonably objects in writing thereto within five Business Days of receipt by the Vendor of written notification of the identity of such legal
counsel from the Purchaser or the relevant member of the Purchaser’s Group and (b) if such legal counsel and the Purchaser or the relevant member of the Purchaser’s Group agree with the Vendor in writing that, if the Vendor exercises its
rights to assume conduct of the Third Party Claim under sub-paragraph (C) below, the legal counsel will (if so requested by the Vendor) continue to act in relation to the Third Party Claim on the instruction of the Vendor;

  

	 	(ii)	in response to reasonable requests from the Vendor from time to time, it or the relevant member of the Purchaser’s Group shall keep the Vendor informed of the progress of the
Third Party Claim; 

  

	 	(iii)	it or the relevant member of the Purchaser’s Group shall provide the Vendor with copies of such documentation relating to the Third Party Claim as the Vendor may reasonably
request at the cost of the Vendor; 

  

	 	(iv)	it or the relevant member of the Purchaser’s Group shall give the Vendor such opportunities as the Vendor may reasonably request to make written or reasonable oral
representations regarding the conduct of the Third Party Claim; 

  

	 	(v)	it or the relevant member of the Purchaser’s Group shall give the Vendor written notice, of such period as is reasonable in the context of the Third Party Claim, the proposal
and the circumstances in which it is made, of any proposal to settle or consent to the entry of any judgment in respect of the Third Party Claim, such notice to include reasonable details of the proposed settlement or consent to the entry of
judgment; and 

  

	 	(vi)	neither it nor the relevant member of the Purchaser’s Group shall settle or consent to the entry of any judgment in respect of the Third Party Claim during the period set out
in sub-paragraph (B)(v) without the prior written consent of the Vendor. 

  

	(C)	 At any time following the receipt by the Vendor of any notice of a Third Party Claim under sub-paragraph (A) above and prior to the settlement, consent to
the entry of judgment of, or non-appealable decision of a court of competent jurisdiction in respect of, such Third Party Claim, the Vendor shall be entitled, on written notice to the Purchaser and subject to the provisions of sub-paragraphs
(D) and (G) below, to assume conduct of the Third Party Claim in the name of the Purchaser or the appropriate member of the Purchaser’s Group; except that the Vendor shall not be entitled to assume conduct of any Third Party
Claim which is a criminal action or 

  

 131 

	 	 
proceeding. For the avoidance of doubt, the Vendor shall be entitled to assume conduct of any non-criminal action or proceeding (pursuant and subject to the
provisions of this sub-paragraph (C)) which arises out of the same facts and circumstances as a criminal action or proceeding. 

  

	(D)	The Vendor shall not be entitled to assume conduct of any Third Party Claim in the name of the Purchaser, any other member of the Purchaser’s Group or otherwise unless the
Vendor first (i) admits irrevocably and unconditionally (subject to the relevant provisions of Schedule 7 (Limitations on Liability)) to the Purchaser in writing and in a legally binding manner its liability under the Warranties in relation
thereto, and (ii) undertakes in a deed to the Purchaser that it will indemnify the Purchaser and each other member of the Purchaser’s Group against all liabilities, costs, damages or expenses incurred by any member of the Purchaser’s Group
(whether prior to, on or after the date of such deed) in respect of such Third Party Claim or the conduct thereof; provided that the limitations set out in sub-paragraphs 1(A) and 1(B) of this Schedule 7 and paragraph
6 of this Schedule 7 shall apply to any liability of the Vendor under this sub-paragraph (D)(ii) as if such liability were a Warranty claim for the purposes of those paragraphs. 

  

	(E)	Where the Vendor assumes the conduct of a Third Party Claim pursuant to the provisions of sub-paragraph (C) above: 

  

	 	(i)	the Purchaser undertakes that: 

  

	 	(a)	neither it nor any other member of the Purchaser’s Group shall make any admission of liability, agreement or settlement with any third party, or consent to the entry of
judgment, in relation to the Third Party Claim; 

  

	 	(b)	it shall give, or cause to be given by the relevant members of the Purchaser’s Group, to the Vendor all such assistance as the Vendor may reasonably require in avoiding,
disputing, resisting, mitigating or defending the Third Party Claim, including, without limitation, such access to the books and records of any member of the Purchaser’s Group, and to the premises and employees and professional advisors of the
Purchaser’s Group, during Working Hours and on reasonable advance notice, as the Vendor may reasonably require; and 

  

	 	(c)	it shall, and shall procure that each other member of the Purchaser’s Group shall, pass to the Vendor copies of all notices or other documents received by the Purchaser or any
member of the Purchaser’s Group in relation to the Third Party Claim, in each case as soon as reasonably practicable after receipt by the Purchaser or relevant member of the Purchasers’ Group thereof; 

  

	 	(ii)	the Vendor undertakes that: 

  

	 	(a)	 if it decides not to instruct the same legal counsel as instructed by the Purchaser with respect to the Third Party Claim (if any), it or the 

  

 132 

	 	 
relevant member of the Vendor’s Group shall notify the Purchaser in writing of the legal counsel which the Vendor proposes to instruct with respect to
the Third Party Claim and such legal counsel shall be entitled to act in relation thereto (x) unless the Purchaser reasonably objects in writing thereto within five Business Days of receipt by the Purchaser of written notification of the identity of
such legal counsel from the Vendor or the relevant member of the Vendor’s Group and (y) if such legal counsel and the Vendor or the relevant member of the Vendor’s Group agree with the Purchaser in writing that, if the Purchaser exercises
its rights under sub-paragraph (F) below, the legal counsel will (if so requested by the Purchaser) continue to act in relation to the Third Party Claim on the instruction of the Purchaser; 

  

	 	(b)	in response to reasonable requests from the Purchaser from time to time, it or the relevant member of the Vendor’s Group shall keep the Purchaser informed of the progress of
the Third Party Claim; 

  

	 	(c)	it or the relevant member of the Vendor’s Group shall provide the Purchaser with copies of such documentation relating to the Third Party Claim as the Purchaser may reasonably
request; 

  

	 	(d)	it or the relevant member of the Vendor’s Group shall give the Purchaser such opportunities as the Purchaser may reasonably request to make written or reasonable oral
representations regarding the conduct of the Third Party Claim; 

  

	 	(e)	neither it nor any relevant member of the Vendor’s Group shall take, permit or omit, or procure the taking, permitting or omission of, any step or action in relation to any
Third Party Claim to the extent that (i) the Vendor in good faith and acting reasonably considers, or (ii) the Purchaser can demonstrate to the Vendor (acting reasonably and in good faith), in each case, that the taking, permitting or omission of
the relevant step or action is reasonably likely to have an adverse effect on any trading relationship or the goodwill of any relevant member of the Purchaser’s Group or the US Business which would, in either case, be material to the
Transferring Business; 

  

	 	(f)	without prejudice to the provisions of sub-paragraph (E)(iii), it or the relevant member of the Vendor’s Group shall give the Purchaser written notice, of such period as
is reasonable in the context of the Third Party Claim, the proposal and the circumstances in which it is made, of any proposal to settle or consent to the entry of judgment in respect of the Third Party Claim, such notice to include reasonable
details of the proposed settlement or consent to the entry of judgment; and 

  

	 	(g)	 without prejudice to the provisions of sub-paragraph E (iii), neither it nor the relevant member of the Vendor’s Group shall settle or consent to the
entry of judgment in respect of the Third Party Claim during the 

  

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period set out in sub-paragraph (E)(ii)(f) without the prior written consent of the Purchaser. 

  

	 	(iii)	the Vendor shall not be entitled to settle or consent to the entry of any judgment in respect of the Third Party Claim unless: 

  

	 	(a)	such settlement or judgment provides for settlement or relief solely in the form of monetary payment; or 

  

	 	(b)	if the settlement or judgment is not of the type described in sub-paragraph (E)(iii)(a) above, without the prior written consent of the Purchaser (such consent not to be
unreasonably withheld or delayed) and, for the purposes of this paragraph E(iii)(b), it will be reasonable for the Purchaser to withhold or delay its consent to a settlement or judgment if such settlement or judgment is reasonably likely to
have an adverse effect on any trading relationship or the goodwill of the relevant member of the Purchaser’s Group or the US Business which adverse effect would be, in either case, material to the Transferring Business.

  

	(F)	Notwithstanding the provisions of sub-paragraphs (C), (D) and (E) above, the Purchaser shall be entitled to take control of any Third Party Claim the conduct of which
has been assumed by the Vendor in accordance with sub-paragraph (C) above at any time after such assumption and prior to the settlement, consent to the entry of judgment of, or non-appealable decision of a court of competent jurisdiction in
respect of, such Third Party Claim provided that the Purchaser: 

  

	 	(i)	first waives irrevocably and unconditionally in writing and in a legally binding manner any and all claims which it, or any other member of the Purchaser’s Group, may have
against the Vendor or any other member of the Vendor’s Group (other than, in respect of insurance matters, the Captive Insurer) in respect of such Third Party Claim under this Agreement or any of the Specified Agreements; and

  

	 	(ii)	undertakes in a deed that it will indemnify the Vendor and the relevant members of the Vendor’s Group (other than, in respect of insurance matters, the Captive Insurer) against
all liabilities, costs, damages or expenses incurred (whether prior to or after the date of such deed) by any member of the Vendor’s Group (other than, in respect of insurance matters, the Captive Insurer) in respect of such Third Party Claim
(including, for the avoidance of doubt, the costs and expenses incurred by the Vendor or any other member of the Vendor’s Group (other than, in respect of insurance matters, the Captive Insurer) in conducting the Third Party Claim pursuant to
the provisions of this paragraph 3). 

  

	(G)	 If, in respect of a Third Party Claim, the Purchaser, or any other member of the Purchaser’s Group, is entitled to make a claim under any policy of insurance
(other than an insurance claim with no reasonable prospect of success) such that the provisions of sub-paragraph 5(A) apply to the matter giving rise to the Third Party Claim (an “Insured Third Party Claim”), the
provisions of sub-paragraphs (B) to (F) shall be subject to the 

  

 134 

	 	 
provisions of the relevant insurance policy or policies relating to such Insured Third Party Claim and the directions of the relevant insurer or insurers
thereunder; provided that the Purchaser shall, and shall procure that the other members of the Purchaser’s Group shall, and the Vendor shall, and shall procure that the other members of the Vendor’s Group shall, comply with the
provisions of sub-paragraphs (B) to (F) to such extent as is permitted under the relevant insurance policy or policies with respect to the Insured Third Party Claim or as the relevant insurer or insurers thereunder may otherwise
consent. 

  

	(H)	If, in relation to any claim for any breach of the Tax Warranties there is also a claim in respect of the same subject matter for a liability under the Tax Covenant, Clause 8 of the
Tax Covenant shall govern the conduct of the relevant litigation and/or claim for breach of such Tax Warranties in precedence to and notwithstanding the provisions of this paragraph 3. 

  

	4.	SINGLE RECOVERY 

  

	(A)	No liability shall attach to the Vendor, the Share Sellers, the US Business Seller, the IP Assets Sellers or any of them by reason of any breach of any of the Warranties or pursuant
to paragraph 16 of Schedule 8 to the extent that the same loss has been recovered by the Purchaser or any other Designated Purchaser under the Tax Covenant or any other Warranty or term of this Agreement or the Specified Agreements
and, accordingly, the Purchaser and any other Designated Purchaser may only be entitled to recover once in respect of the same loss. 

  

	(B)    (i)	In calculating the liability of the Vendor, the Share Sellers, the US Business Seller and the IP Assets Sellers for any breach of the Warranties or pursuant to paragraph 16
of Schedule 8 there shall be taken into account any repayment in respect of Tax or any Relief arising as a result of the matter giving rise to such liability which the Purchaser or any member of the Purchaser’s Group obtains and utilises
on or before the date of calculating such liability. 

  

	 	(ii)	 To the extent that the Purchaser (or the relevant member of the Purchaser’s Group) obtains and utilises any repayment in respect of Tax or any Relief arising
as a result of the matter giving rise to the liability of the Vendor, the Share Sellers, the US Business Seller or the IP Assets Sellers for any breach of the Warranties or pursuant to paragraph 16 of Schedule 8, the Purchaser (or the
relevant member of the Purchaser’s Group) shall, except to the extent that such utilisation has been taken into account in calculating the liability of the Vendor, the Share Sellers, the US Business Seller or the IP Assets Sellers pursuant to
paragraph (i) of this sub-paragraph (B), remit to the Vendor, within 15 Business Days of actual receipt, an amount equal to so much of the economic benefit from that repayment in respect of Tax or Relief which the Purchaser (or the
relevant member of the Purchaser’s Group) has actually received; provided that nothing in this sub-paragraph (B)(ii) shall restrict the ability or discretion of the Purchaser (or the relevant member of the Purchaser’s Group)
to order its Tax affairs in any way which it sees fit and to keep its Tax affairs confidential. Any question concerning whether the Purchaser (or the relevant member of the 

  

 135 

	 	 
Purchaser’s Group) has actually realised any such economic benefit or the quantum and timing of such benefit shall be determined by the auditors for the
time being of the Purchaser (or the relevant member of the Purchaser’s Group). 

  

	(C)	No liability shall attach to the Vendor, the Share Sellers, the US Business Seller, the IP Asset Sellers or any of them by reason of any breach of the Warranty set out in
paragraph 4(F) of Schedule 6 to the extent (and in respect of the period) that the Vendor or any other member of the Vendor’s Group provides to the relevant Company or Designated Purchaser such goods, services or facilities as
shall have given rise to the breach of such Warranty for the period of 6 months from the Completion Date (and, if the relevant Company or Companies or other member of the Purchasers’ Group, having unsuccessfully used all reasonable endeavours
to cease the use of such goods, services or facilities (as appropriate) by the end of such 6 month period, upon written notice from the Purchaser to the Vendor, a further 6 months following the expiry of such 6 month period), on the same basis as
such goods, services or facilities were provided to the relevant Company or Companies or to any other member of the Vendor’s Group in respect of the Transferring Business immediately prior to the Completion Date. 

  

	5.	RECOVERY FROM INSURERS AND OTHER THIRD PARTIES 

  

	(A)	If, in respect of any matter which would give rise to a claim under the Warranties any member of the Purchaser’s Group is entitled to claim under any policy of insurance (other
than an insurance claim with no reasonable prospect of success) then, having notified the Vendor of the claim in writing in accordance with paragraph 2, the Purchaser shall not further pursue that claim under the Warranties unless and until
the appropriate member of the Purchaser’s Group shall have made a claim against its insurers and used all reasonable endeavours to pursue such insurance claim including where reasonable and appropriate commencing and prosecuting proceedings
against insurers. There shall be no liability under the Warranties to the extent of the amount recovered under any such insurance claim except to the extent: 

  

	 	(i)	of the reasonable costs and expenses and any Taxation incurred or suffered by any member of the Purchaser’s Group in connection with the recovery; and/or

  

	 	(ii)	that the future insurance costs of the Purchaser or any other member of the Purchaser’s Group are increased by the matter giving rise to the insurance claim or the claim
itself. 

  

	(B)	 If having notified the Vendor of the relevant claim in writing in accordance with paragraph 2 and (a) having used all reasonable endeavours to pursue an
insurance claim as contemplated by sub-paragraph (A), or (b) by the second anniversary of the notification by the Purchaser to the Vendor in writing of the relevant Warranty claim, the Purchaser (or the relevant other member of the
Purchaser’s Group) shall not have recovered the full amount of its loss in respect of the relevant matter, the provisions of paragraph 2 and paragraph 5 shall not preclude it from pursuing any claim under the Warranties in respect
of such matter for the amount of the loss not recovered from insurers and the proviso to paragraph 2 shall not apply to such claim; provided that in the circumstances set out in (b) above, the provisions of this sub-paragraph
5(B) shall 

  

 136 

	 	 
not limit in any way the obligations of the Purchaser or any member of the Purchaser’s Group under sub-paragraph (A) to pursue such insurance
claim. The provisions of sub-paragraph (A) shall not prejudice the ability of the Purchaser to recover interest in respect of any claim under the Warranties. 

  

	(C)	Where the Purchaser or any member of the Purchaser’s Group is at any time entitled to recover from some third party, not being an insurer or the Vendor or any member of the
Vendor’s Group, any sum in respect of any matter giving rise to a claim under the Warranties, the Purchaser shall, and shall procure that the member of the Purchaser’s Group concerned shall, take all reasonable steps to make such recovery
and in the event that the Purchaser or any member of the Purchaser’s Group shall recover any amount from such third party prior to any member of the Vendor’s Group paying to the Purchaser or any member of the Purchaser’s Group any
amount pursuant to the relevant claim under the Warranties, the amount of the claim under the Warranties shall be reduced by the amount recovered (except to the extent that such recovery had been taken into account in the formulation of the claim
under the Warranties and except to the extent of the reasonable costs and expenses and any Taxation incurred or suffered by any member of the Purchaser’s Group in connection with the recovery), provided that the Purchaser shall not be required
to commence any legal proceedings where either: 

  

	 	(i)	the Purchaser has effected a valid legal assignment of all its rights in relation to the relevant claim to the Vendor; or 

  

	 	(ii)	where sub-paragraph (C)(i) does not apply, the Vendor has not as soon as is reasonably practicable notified the relevant party against whom such proceedings are brought that
such proceedings are being brought at the instruction of the Vendor. 

  
 For the avoidance of doubt, the provisions of this sub-paragraph (C) shall not require the Purchaser or any member of the Purchaser’s Group to take any steps to recover sums from a third party prior to
taking any action against the Vendor, the Share Seller, the US Business Seller, the IP Assets Sellers or any of them and shall not require the Purchaser or any member of the Purchaser’s Group to take, permit or omit from taking any step or
action to recover sums from a third party to the extent that the taking, permitting or omission of the relevant step or action would have an adverse effect on any trading relationship or the goodwill of any relevant member of the Purchaser’s
Group or the US Business which would, in either case, be material to the Transferring Business. 
  

	(D)	 If any member of the Vendor’s Group pays at any time to the Purchaser or any member of the Purchaser’s Group an amount pursuant to a claim in respect of
the Warranties and the Purchaser or relevant member of the Purchaser’s Group subsequently recovers from a third party (including, for the avoidance of doubt, any insurer, but excluding the Vendor or a member of the Vendor’s Group) any sum
in respect of any matter giving rise to such claim, the Purchaser shall, and shall procure that the relevant member of the Purchaser’s Group shall, repay to the relevant member of the Vendor’s Group the lesser of (i) the amount paid by the
relevant member of the Vendor’s Group to the Purchaser or other member of the Purchaser’s Group, and (ii) the sum (including 

  

 137 

	 	 
interest (if any)) recovered from such third party less (a) the reasonable costs and expenses and any Taxation incurred or suffered by the relevant
member of the Purchaser’s Group in connection with such recovery and (b) any amount (other than insurance premium) paid to any insurer pursuant to any rights of subrogation or otherwise under any relevant insurance policy or policies in
connection with such recovery. 

  

	6.	ACTS OF PURCHASER 

  

	(A)	No claim shall lie against the Vendor, the Share Sellers, the US Business Seller, the IP Assets Sellers or any of them under or in relation to the Warranties or pursuant to
paragraph 16 of Schedule 8 to the extent that such claim is attributable to: 

  

	 	(i)	any voluntary act, omission, transaction or arrangement carried out at the written request of or with the written consent of the Purchaser or by a member of the Purchaser’s
Group (other than the Companies) before Completion; 

  

	 	(ii)	any voluntary act or transaction carried out or entered into by the Purchaser or by a member of the Purchaser’s Group on (save for the taking of any steps set out in
Schedule 5 (Completion)) or after Completion unless such act or transaction (a) is carried out or entered into by the Purchaser or another member of the Purchaser’s Group in the ordinary course of business, (b) is required to be carried
out or entered into by law or regulation in any relevant jurisdiction, or (c) is carried out or entered into pursuant to a legally binding commitment entered into by a Company or a member of the Vendor’s Group in respect of the US Business
prior to Completion; or 

  

	 	(iii)	any failure by the Purchaser or any other member of the Purchaser’s Group to take, after Completion, an action which is required of it (a) by law or regulation in any relevant
jurisdiction, or (b) otherwise under any legally binding contract or agreement entered into by any Company or any member of the Vendor’s Group in respect of the US Business and (in the case of (b) only) listed in the Data Room Index or forming
part of the Disclosure Bundle. 

  

	(B)	Neither the Vendor, the Share Sellers, the US Business Seller, the IP Assets Sellers nor any of them shall be liable for any breach of any Warranty or pursuant to paragraph
16 of Schedule 8 which would not have arisen but for any change after Completion in any accounting basis on which any member of the Purchaser’s Group values its assets or in any accounting basis, method, policy or practice of any
member of the Purchaser’s Group. 

  

	7.	THE ACCOUNTS, THE MANAGEMENT ACCOUNTS AND THE COMPLETION ACCOUNTS 

  
 No matter shall be the subject of a claim under the Warranties or pursuant to paragraph 16 of Schedule 8 to the extent that allowance,
provision or reserve in respect of such matter shall have been specifically identified in the Accounts or the 

  

 138 

	 	 
Management Accounts or to the extent such matter is taken into account in the calculation of the Working Capital Amount. 

  

	8.	RETROSPECTIVE LEGISLATION 

  
 No liability shall arise in respect of any breach of any of the Warranties or pursuant to paragraph 16 of Schedule 8 to the extent that
liability for such breach occurs or is increased directly or indirectly as a result of (i) any legislation not in force on or prior to the date of this Agreement or (ii) the withdrawal of any published extra-statutory concession or other agreement
or (in relation only to the Tax Warranties) arrangement currently granted by or made with any governmental authority, or (iii) any change after the date of this Agreement of any published interpretation or (in relation only to the Tax Warranties)
published application of any legislation or (in relation only to the Tax Warranties) in the enforcement policy or practice of the relevant authorities, or (iv) the withdrawal of any published extra-statutory concession or any other agreement or (in
relation only to the Tax Warranties) arrangement with any Tax Authority (whether or not having the force of law) currently granted by or made with any Tax Authority. 
  

	9.	TAXATION 

  

	(A)	Without prejudice to the generality of paragraph 8 above, the Vendor, the Share Sellers, the US Business Seller and the IP Assets Sellers shall not be liable in any event in
respect of any breach of the Warranties if such breach or claim would not have occurred or arisen but for any change in the basis of, method of calculation of, or increase in the rate or rates of Taxation or changes in the practice of the Inland
Revenue or other Tax Authority announced (or if not so announced in advance, being made) after the date hereof or the withdrawal of any published extra-statutory concession currently granted by any Tax Authority. 

  

	(B)	None of the Vendor, the Share Sellers, the US Business Seller or the IP Assets Sellers shall be liable for any claim to the extent that it arises out of or is increased by virtue of
a voluntary disclaimer by any Company after Completion of any Relief available to any Company (other than any such disclaimer made at the request of or with the consent of the Vendor). 

  

	(C)	None of the Vendor, the Share Sellers, the US Business Seller or the IP Assets Sellers shall be liable in respect of any claims in respect of any breach of the Tax Warranties (a
“Tax Claim”) if and to the extent that any pre-Completion Relief not taken into account in computing the provision for Tax in the Accounts is available or is made available to relieve or otherwise mitigate the liability of
the Company for Tax which is the subject matter of such Tax Claim. 

  

	(D)	None of the Vendor, the Share Sellers, the US Business Seller or the IP Assets Sellers shall be liable in respect of any breach of the Tax Warranties if such liability would have
been excluded under the provisions of clause 3 of the Tax Covenant had the relevant liability been a Tax Liability for the purposes of the Tax Covenant. 

  

 139 

	10.	DISCLOSURE 

  
 The Purchaser shall not be entitled to claim that any fact, matter or circumstance causes any of the Warranties to be breached to the extent that such
fact, matter or circumstance is fairly disclosed in the Disclosure Letter or in any document contained in the Disclosure Bundle or listed in the Data Room Index; provided that the only disclosures that shall be relevant to the Warranty set
out in paragraph 8(E) of Schedule 6 (Warranties) are those specifically referenced to such Warranty in the Disclosure Letter. 
  

	11.	CLAIM TO BE REDUCTION OF CASH CONSIDERATION 

  
 Any payment made by a member of the Vendor’s Group or any other person in respect of any claim under the Warranties or pursuant to paragraph
16 of Schedule 8 shall be deemed to be a reduction of the Cash Consideration payable by the Purchaser (on behalf of the relevant Designated Purchaser) and such reduction shall be allocated to the greatest extent possible to the particular
Shares, US Business Assets or IP Assets to which the claim relates. 
  

	12.	FRAUD 

  
 None of the provisions of this Schedule 7 (other than paragraph 11) shall apply in respect of any claim under the Warranties or under the
Tax Covenant where the giving of the relevant Warranties or the relevant provision of the Tax Covenant or the preparation of the relevant provisions of the Disclosure Letter involve or involved fraud on the part of the Vendor or another member of
the Vendor’s Group. 
  

	13.	MITIGATION 

  
 Nothing in this Agreement shall affect the obligation of the Purchaser or any Designated Purchaser under the general law to mitigate the loss in respect
of which it may be entitled to make any claim under the Warranties. 
  

	14.	EXCLUSIONS 

  

	(A)	None of the limitations set out in this Schedule 7 (Limitations on Liability) shall apply to: 

  

	 	(i)	the Warranties set out in paragraph 2 (Capacity of the Vendor’s Group) of Schedule 6 (Warranties); or 

  

	 	(ii)	a claim under the Tax Covenant to the extent that the claim relates to a Reorganisation Tax Liability. 

  

	(B)	The limitations set out in paragraph 1 of this Schedule 7 (Limitations on Liability) shall not apply to a claim under the Tax Covenant to the extent that the claim
relates to a Current Year Tax Liability or a Profit and Loss Equalisation Agreement Tax Liability. 

  

 140 

	(C)	The limitations set out in paragraph 1 of this Schedule 7 (Limitations on Liability) shall not apply to a claim under paragraph 40 (Non Deductible Royalty
Payments) of Schedule 6 (Warranties). 

  

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 142 

 SCHEDULE 8 
 (Pensions) 
  
 Part A UK
PENSIONS 
  

	1.	DEFINITIONS 

  

	 	(i)	In this Part A of this Schedule the following expressions shall have the meanings respectively assigned to them: 

  

			
	 “an Actuary”
	  	means a Fellow of the Institute of Actuaries or a Fellow of the Faculty of Actuaries in Scotland, such actuary if appropriate to be employed by a company or firm making available the advice
of an actuary who is a director or employee of that company or an employee or partner of that firm.
		
	 “the Actuary”
	  	means an Actuary (if any) appointed for the purposes of paragraph 10(D).
		
	 “Article 141”
	  	means Article 141 of the Treaty of Rome or any current or future legislation which implements Article 141 or which implements any EC Directive relating to equal treatment. References to the
EC shall be taken to include the European Community (formerly the European Economic Community) and the European Union.
		
	 “Holding Period”
	  	means, subject to paragraph 6(B), the period commencing on and including the Completion Date and ending immediately before the Scheme Change Date.
		
	 “Net Relevant Contributions”
	  	means the monthly contributions to the UPF made in respect of the Transferring Members during the Holding Period in accordance with paragraph 3 less:
		
	 	  	 (a)    0.7% of Transferring Members’ Pensionable Pay payable in respect of the
Holding Period (for the annual cost of lump sum benefits payable in the event of death in service);
  
 (b)    1.6% of Transferring Members’ Pensionable Pay payable in respect of the Holding Period (for the
annual cost of benefits payable in the event of ill health retirement and benefits, other than lump sum benefits, payable in the event of death in service);
  
 (c)    1% of Transferring Members’ Pensionable Pay

  

 143 

			
	 	  	 payable in respect of the Holding Period (for the annual cost of administration).

		
	 “1999 SERA”
	  	means the arrangements constituted by a letter from Unilever UK Central Resources Limited to the Pensionable Employee in question, entitled “Senior Managers’ Pension Arrangements:
1999 SERA Letter”.
		
	 “the Payment Date”
	  	means either:
		
	 	  	 (a)    the later of:
  
 (i)     the first Business Day following 30 days after the agreement of
the Relevant Capital Sum under paragraph 10 or the certification of the Relevant Capital Sum by the Actuary in default of agreement, and

		
	 	  	 (ii)    the first Business Day following 30 days after the date by which the Relevant Conditions have been satisfied
and the Vendor has received written notice of that fact from the Purchaser (for the avoidance of doubt, such notice shall not of itself constitute conclusive evidence that the Relevant Conditions have been satisfied); or

		
	 	  	 (b)    such other date as may be agreed in writing between the Vendor and the Purchaser.

		
	 “Pensionable Pay”
	  	shall have the same meaning as set out in the Definitive Trust Deed and Rules of the UPF.
		
	 “Purchaser’s Actuary”
	  	means an Actuary appointed by the Purchaser to act on the Purchaser’s behalf for the purposes of this Part A of this Schedule.
		
	 “Purchaser’s Pension Scheme”
	  	shall mean the retirement benefits scheme providing death and retirement benefits for or in respect of the Relevant Employees to be established or nominated by the Purchaser pursuant to
paragraph 4 or, if the context so requires, the trustees of that scheme.
		
	 “Relevant Capital Sum”
	  	means such sum in cash as is certified by the Vendor’s Actuary and agreed with the Purchaser’s Actuary (or, in default of agreement, as determined by the Actuary
under

  

 144 

			
	 	  	paragraph 10) as being the transfer value at the Scheme Change Date attributable to the Transferring Members calculated in accordance with paragraph 8.
		
	 “Relevant Conditions”
	  	means the obligations to be performed by the Purchaser under paragraphs 3, 4, 5, 7 and 15 (insofar as those obligations have arisen by the time in question).
		
	 “Relevant Employees”
	  	means such of the UK Employees as are members of the UPF on the Completion Date and where the context requires, in relation to 1999 SERA, the Senior Managers.
		
	 “Scheme Change Date”
	  	means, subject to paragraph 6(B), the date 12 months after the Completion Date or such earlier date as the Purchaser may agree with the Vendor.
		
	 “Senior Managers”
	  	means Stephen Pepper and David Walton.
		
	 “Timing Adjustment”
	  	 means, in relation to a period and in respect of each sum to which this definition applies, the formula found by calculating:
  
 (i)     one-half of the
proportionate change during the period specified of the FT/S&P Actuaries World Ex UK Pound Sterling Index with 86 per cent. of the gross dividend income reinvested in the same index at the end of each calendar month; and
  
 (ii)    one-half of the
proportionate change during the period specified of the FTSE Actuaries All-Share Total Return Index.
  
 For the avoidance of doubt, if (for example), the change in each of the Indices in (i) and (ii) above during the period specified is an increase of 5 per cent., then the Timing Adjustment will be a multiplicative
factor of 1.05.
  
 The FTSE Actuaries All-Share Total Return Index or the
FT/S&P Actuaries World Ex UK Pound Sterling Index at a particular date is the Index for that date. The Index for that date shall be determined by the Vendor’s Actuary and agreed by the Purchaser’s Actuary. If the Vendor’s Actuary
and the Purchaser’s Actuary fail to reach agreement as to the Index or the calculation of the above formula, the provisions of paragraphs 10(C) to (F) inclusive shall apply with all necessary changes.

  

 145 

			
	 “Transferring Member”
	  	means a Relevant Employee who:
		
	 	  	 (a)    becomes a member of the Purchaser’s Pension Scheme on the Scheme Change Date and who immediately before
that date was a member of the UPF in pensionable service, and

		
	 	  	 (b)    (i)    who agrees in writing to a transfer payment to the Purchaser’s Pension Scheme
from the UPF in respect of his or her interest therein (such agreement in writing to include a discharge in the Agreed Form in favour of the UPF and the Vendor’s Group for any liability to or in respect of that Relevant Employee to provide any
further benefits under the UPF); and

		
	 	  	 (ii)    if he is a Senior Manager who also agrees in writing to a transfer of his benefits under 1999 SERA in respect
of his or her interest therein (such agreement in writing to include a discharge in the Agreed Form in favour of the Vendor’s Group for any liability to provide benefits under 1999 SERA), and

		
	 	  	 (iii)  who does not withdraw that agreement before such benefits are transferred to the Purchaser’s Pension
Scheme.

		
	 “UK Company”
	  	means either or both of Unipath Limited and Unipath Management Limited.
		
	 “UPF”
	  	means the Unilever Pension Fund, constituted by a definitive trust deed and rules dated 31st January, 2000 (as amended) or, if the context so requires, the trustee of the Unilever Pension
Fund.
		
	 “Vendor’s Actuary”
	  	means an Actuary appointed by or on behalf of the Vendor to act on the Vendor’s behalf for the purposes of this Part A of this Schedule.

  

 146 

			
	 “Voluntary Fund”
	  	means a fund comprising voluntary contributions paid by members and the investments and moneys representing those contributions and any income derived therefrom.

  

	 	(B)	References in this Part A of this Schedule to paragraphs are to paragraphs of this Part A of this Schedule. 

  

	 	(C)	Save where specifically defined or where the context otherwise requires, words and expressions used in Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 or in the
Pension Schemes Act 1993 (as amended) shall have the same meanings in this Part A. 

  

	2.	CONTINUATION OF PARTICIPATION IN THE UPF 

  
 Subject to obtaining all necessary consents and approvals from: 
  

	 	(i)	the Board of the Inland Revenue, and 

  

	 	(ii)	the National Insurance Contributions Office on behalf of the Inland Revenue, 

  

the Vendor shall use all reasonable endeavours to ensure that the UK Company may continue to participate in the UPF and 1999 SERA as a participating
employer in respect of the Relevant Employees and the Senior Managers respectively for the duration of the Holding Period. 
  

	3.	PURCHASER’S OBLIGATIONS IN RELATION TO THE UPF 

  

	 	(A)	In respect of the period in which the UK Company is a participating employer pursuant to paragraph 2 the Purchaser shall: 

  

	 	(i)	procure that the UK Company pays to the UPF contributions in respect of the Relevant Employees who remain active members of the UPF, at the rate of 16.7% of each Relevant
Employee’s Pensionable Pay in accordance with paragraph 3(C), less the amount of any employee contributions payable to the UPF by such Relevant Employees; and 

  

	 	(ii)	procure that the UK Company shall not permit any person other than a Relevant Employee to become a member of the UPF. 

  

	 	(B)	No contributions shall be payable during the Holding Period by Relevant Employees until such date (if any) on which all active members of the UPF are required to contribute to the
UPF under the provisions of the UPF except for any voluntary contributions or for any contributions due in respect of a service credit under the UPF. 

  

 147 

	 	(C)	Contributions under paragraph 3(A)(i) shall be paid on the 1st day of each month immediately following the month to which they relate (or such other date as Vendor and Purchaser
agree). 

  

	4.	PURCHASER TO PROVIDE BENEFITS FOR FUTURE SERVICE 

  

	 	(A)	No later than the Scheme Change Date the Purchaser shall procure that: 

  

	 	(i)	there shall have been established or nominated the Purchaser’s Pension Scheme which shall be contracted-out of the State earnings related pension scheme on the basis specified
in Section 9(2B) of the Pension Schemes Act 1993 (as amended by the Pensions Act 1995) and capable of approval under Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 by the Board of the Inland Revenue, and 

 

	 	(ii)	membership of the Purchaser’s Pension Scheme is offered to all Relevant Employees with effect from the Scheme Change Date who would have been in pensionable service on the
Scheme Change Date in the UPF but for the transaction provided for in this Agreement without imposing any condition as to the transfer of benefits in the UPF to the Purchaser’s Pension Scheme as a condition of membership of the Purchaser’s
Pension Scheme. 

  
 (B) 
  

	 	(i)	The Purchaser shall provide or procure to be provided in respect of service for the period of 3 years from and including the Completion Date, benefits payable as of right for and in
respect of each Transferring Member (such definition shall include, for the purposes of this paragraph 4, any Relevant Employee who joins the Purchaser’s Pension Scheme on the Scheme Change Date and who does not elect to transfer his benefits
under the UPF to the Purchaser’s Pension Scheme) and his dependants, which, taken as a whole in respect of such Transferring Member, shall be no less favourable overall (as agreed or determined in accordance with paragraph 4(D)) than the
benefits applicable to and in respect of that Transferring Member under the Rules of the UPF at the Completion Date except to the extent otherwise agreed with the Transferring Member. 

  

	 	(ii)	For the purpose of this paragraph 4 and paragraph 5, in determining whether benefits are “no less favourable” than benefits under the UPF, the following provisions shall
apply: 

  

	 	(a)	benefits in the UPF shall be deemed to include, and benefits to be provided or procured to be provided by the Purchaser shall include: 

  

	 	•	a right to receive benefits unreduced from age 60 except where, prior to the Scheme Change Date, Unilever PLC has withdrawn its consent under the UPF to members receiving benefits
unreduced from age 60, in which case, for the purposes of this paragraph 4 and paragraph 5, benefits in the UPF shall be deemed not to include a right to receive benefits unreduced from age 60 other than to the extent such a benefit is as of right
under the UPF as set out in the note below; and 

  

 148 

 Note: Pre-1st October, 1987 female members of the UPF have this benefit as of right under the UPF rules.
Pre-1st October, 1987 male members have this benefit as of right in respect of post-16th May, 1990 pensionable service. For other members (and for pre-17th May, 1990 pensionable service for pre-1st October, 1987 male members) due allowance for
unreduced benefits from age 60 is made in cash equivalent calculations and see also the allowance made in the statement from the Vendor’s Actuary comprised in Annex A to this Schedule. 
  

	 	•	where a Pensionable Employee has elected, at any time before the Scheme Change Date, under Rule C3 of the UPF to purchase a service credit and the period over which contributions
are payable in respect of the cost of that credit has not expired before the Scheme Change Date, a right, for so long as he remains in pensionable service by reference to the Purchaser’s Pension Scheme, to purchase over the period commencing on
the Scheme Change Date the balance of the service credit which he would have been entitled to purchase had he remained in pensionable service by reference to the UPF on the same terms and conditions as apply under the provisions of the UPF in force
immediately prior to the Completion Date. Notwithstanding paragraph 4(B)(i), once such an election has been made, this obligation of the Purchaser shall continue to apply until the expiry of the period over which contributions are payable in respect
of the cost of the service credit. 

  

	 	(b)	 where there is an established practice as to the exercise of discretions in relation to benefits, the Purchaser shall make an announcement to the Relevant Employees
which is in the Agreed Form that it will continue that practice; provided that the Purchaser shall, subject to applicable law, have the same rights of variation and discontinuance of that practice as the relevant 

  

 149 

	 	 
member of the Vendor’s Group has immediately prior to the Completion Date. 

  

	 	(c)	benefits in the UPF and benefits to be provided or procured to be provided by the Purchaser shall be valued on the basis of the same actuarial method and assumptions as are set out
in the statement from the Vendor’s Actuary referred to in paragraph 8, modified to such extent as may be agreed in writing by the Vendor’s Actuary and the Purchaser’s Actuary and the procedure referred to in paragraph 10(D) to (G)
inclusive shall apply if any such modification is not so agreed. 

  

	 	(d)	whether or not a transfer is made to the Purchaser’s Pension Scheme in respect of past service benefits, equivalent benefits in respect of the service of each Relevant Employee
for the period referred to in paragraph 4(B)(i) must vest on the same or shorter timescale and at least in the same circumstances as if the Relevant Employee concerned had continued to be an active member of the UPF for so long as he remains
employed by a member of the Purchaser’s Group (whether or not continuing to accrue benefits under the Purchaser’s Pension Scheme). 

  

	 	(e)	equivalent benefits in respect of service prior to and on and after the Completion Date must also be of a type and form approved by the Vendor. For this purpose, it is agreed that
it will be reasonable for the Vendor’s Actuary not to approve money purchase benefits in place of benefits under the UPF and 1999 SERA. 

  

	 	(f)	where benefits are provided under the UPF or 1999 SERA on the death or disability of a Relevant Employee or his spouse, child or dependant, equivalent benefits must be provided on
such events which are payable in circumstances and under conditions which are not materially less favourable to the beneficiary concerned as those which would have applied had the death or disability occurred whilst the beneficiary was a beneficiary
of the UPF or 1999 SERA under the provisions of the UPF or 1999 SERA in force immediately prior to the Completion Date. 

  

	 	(iii)	Except for any contributions due in respect of a service credit under the UPF, the Purchaser shall procure that, in the satisfaction of its obligation under paragraph 4(B)(i),
compulsory contributions shall not be payable by a Pensionable Employee, except to the extent otherwise expressly agreed in writing by that Pensionable Employee, at a rate greater than the rate (if any) at which: 

  

	 	(a)	he pays compulsory contributions at the Completion Date, for a period of 1 year from the Completion Date or, if shorter, the period expiring on the date on which he is required to
contribute to the UPF under the provisions of the UPF, if he is then an active member of the UPF, or on which he would have been required to contribute to the UPF under the provisions of the UPF, had he then been an active member of the UPF; and

  

 150 

	 	(b)	he could have been required to contribute to the UPF under the provisions of the UPF in force immediately prior to the Completion Date but for any surplus or deficit in the UPF, for
the remainder of the period referred to in paragraph 4(B)(i) after the expiry of the period in (a) above. 

  

	 	(C)	The obligations under paragraph 4(B) and paragraph 5(A) shall continue in force even if the Purchaser disposes of a member of the Purchaser’s Group or all or any part of the
business thereof and accordingly the Purchaser shall procure that the acquiror concerned honours the obligations under paragraph 4(B) and paragraph 5(A) in respect of each Transferring Member (as such definition is extended in paragraph 4(B)(i))
concerned in such a disposal. 

  
 (D) 

 

	 	(i)	The Purchaser shall procure that the Purchaser’s Actuary shall notify the Vendor’s Actuary in writing of the benefits which it is proposed the Purchaser will provide or
procure to be provided in accordance with paragraph 4(B). 

  

	 	(ii)	The Vendor’s Actuary, on receipt of notification in accordance with paragraph 4(D)(i), shall review the benefits to be provided and shall determine by notice in writing to the
Purchaser’s Actuary whether the benefits proposed to be provided comply with the requirements of paragraph 4(B). 

  

	 	(iii)	If the Purchaser’s Actuary does not agree with the Vendor’s Actuary’s determination referred to in paragraph 4(D)(ii), the disagreement shall be resolved in
accordance with the procedure referred to in paragraph 10(D) to (G) inclusive with all necessary changes. 

  

	 	(E)	Any announcement to be issued by the Vendor or a member of the Purchaser’s Group in relation to benefits the subject of this paragraph 4 or paragraph 5 must be consistent with
the terms of this paragraph 4 and paragraph 5 and, prior to the issue of any such announcement, the Vendor or, as the case may be, the Purchaser, shall provide to the other a copy of the intended announcement and shall not issue it without prior
consultation with the other. 

  

	 	(F)	 The Purchaser’s agreement to the provisions of this paragraph 4 and paragraph 5 is given by the Purchaser on the express understanding that, if the Purchaser

  

 151 

	 	 
is in breach of any of such provisions, the Vendor may, at its absolute discretion, and without limitation, seek to procure compliance with such provisions
by the Purchaser by applying to the court for damages and/or specific performance. 

  

	5.	PURCHASER TO OFFER BENEFITS FOR PAST SERVICE AND TO GIVE OTHER UNDERTAKINGS 

  

	 	(A)	The Purchaser shall procure that each Relevant Employee who has not immediately before the Scheme Change Date: 

  

	 	•	ceased to be in employment of the Purchaser, or 

  

	 	•	attained normal retirement age in the UPF, 

  
 shall, in respect of pensionable service up to the day before the Scheme Change Date, have the option of transferring, subject to: 
  

	 	(a)	the UPF agreeing to transfer the Relevant Capital Sum as adjusted in accordance with paragraph 11(A), or 

  

	 	(b)	a payment being made pursuant to paragraph 12(A), 

  
 the rights accrued to and in respect of that Relevant Employee in the UPF to the Purchaser’s Pension Scheme on the basis that the benefits to be
provided for and in respect of that Relevant Employee under the Purchaser’s Pension Scheme in respect of pensionable service up to the day before the Scheme Change Date will be no less favourable overall (as agreed or determined in accordance
with paragraph 4(D)) than the benefits for and in respect of that Relevant Employee until then provided under the UPF. 
  

	 	(B)	In determining, for the purpose of paragraph 5(A), whether benefits under the Purchaser’s Pension Scheme are “no less favourable” than benefits under the UPF, the
provisions of paragraph 4(B)(ii) shall apply with all necessary changes. 

  

	 	(C)	The Purchaser shall procure before the Payment Date that: 

  

	 	(i)	the Purchaser’s Pension Scheme delivers to the UPF an undertaking under which the Purchaser’s Pension Scheme agrees: 

  

	 	(a)	to accept any payment proposed to be made to the Purchaser’s Pension Scheme by the UPF in respect of the Transferring Members; 

  

	 	(b)	subject to receipt of the amount referred to in paragraph 11(A) or to a payment being made pursuant to paragraph 12(A) to provide benefits to the Transferring Members in
accordance with paragraph 5(A); and 

  

 152 

	 	(c)	to comply with the applicable requirements of Clause 19(b) (Bulk transfers-out) of the UPF Trust Deed, being: 

  

	 	•	any undertakings given by the UPF to the Board of Inland Revenue; 

  

	 	•	the preservation requirements of the Pension Schemes Act 1993 (and any regulations relating to the preservation requirements made under that Act); and 

  

	 	•	the contracting-out requirements of the Pension Schemes Act 1993 (and any regulations relating to the contracting-out requirements made under that or any other Act),

  
 in each case to the extent
applicable; 
  

	 	(ii)	the employer of the Transferring Members in question is named in a contracting-out certificate issued for contracting-out on the basis specified in Section 9(2B) of the Pension
Schemes Act 1993 (as amended by the Pensions Act 1995) in relation to the Purchaser’s Pension Scheme; and 

  

	 	(iii)	the Purchaser’s Actuary delivers a certificate to the Vendor and the UPF confirming that the Purchaser’s Pension Scheme has no liabilities as at the Scheme Change Date
(other than the liabilities in respect of the benefits of the Transferring Members until then provided under the UPF). 

  

	 	(D)	The Purchaser shall procure that the notices to be issued to Relevant Employees in respect of the option referred to in paragraph 5(A) are in terms which require consents to a
transfer to be given by a date agreed between the Vendor and the Purchaser. 

  

	6.	VENDOR’S OBLIGATIONS DURING THE HOLDING PERIOD 

  

	 	(A)	The Vendor shall use all reasonable endeavours to ensure that during or in respect of the Holding Period: 

  

	 	(i)	the UPF and 1999 SERA shall not be terminated, and 

  

	 	(ii)	no amendments to the UPF or 1999 SERA shall be made which will diminish or otherwise affect the benefits of the Relevant Employees, 

  
 without the prior written agreement of the Purchaser. 
  

	 	(B)	 The Purchaser’s agreement referred to in paragraph 6(A) shall not be unreasonably withheld or delayed and if withheld or delayed the Vendor shall be entitled
to specify by not less than one month’s written notice to the Purchaser 

  

 153 

	 	 
that the Holding Period shall terminate on such date as shall be specified in the said notice. 

  

	7.	RESTRICTION ON INCREASES TO PENSIONABLE PAY; PURCHASER TO COMPLY WITH CERTAIN OTHER CONDITIONS 

  

	 	(A)	The Purchaser undertakes that it shall procure that the UK Company will not increase the Pensionable Pay of any Relevant Employee during the Holding Period save that the annual
pensionable salary of any Relevant Employee may be increased by up to the percentage (pro-rated to reflect the length of the Holding Period) assumed for annual pensionable salary increases in the Statement from the Vendor’s Actuary comprised in
Annex A to this Schedule (such percentage being reduced by the percentage amount of any increase awarded since the last annual pensionable salary increase awarded prior to the Completion Date) or such greater percentage agreed in writing by the
Vendor and the Purchaser. 

  

	 	(B)	The Purchaser shall procure that the UK Company shall: 

  

	 	(i)	comply during the Holding Period in all respects with the provisions of the UPF; 

  

	 	(ii)	not do or omit to do during the Holding Period any act or thing whereby the approval of the UPF as an exempt approved scheme or as a contracted-out scheme would or might be
prejudiced; 

  

	 	(iii)	not exercise any power, right or discretion conferred on the UK Company by the UPF except on such terms (whether as to payment of additional contributions to the UPF or otherwise)
as the Vendor may agree; 

  

	 	(iv)	complete promptly all contracting-out elections and issue promptly all contracting-out notices which the Vendor may reasonably require to be completed or issued;

  

	 	(v)	supply to the Vendor and to the UPF copies of any notices to be issued to the Relevant Employees in connection with the matters contemplated by this Part A of this Schedule before
they are issued to the Relevant Employees; 

  

	 	(vi)	procure that no such notices as are referred to in paragraph 7(B)(v) are issued to the Relevant Employees until the benefits to be provided or procured to be provided by the
Purchaser in accordance with paragraphs 4 and 5 have been agreed or determined in accordance with those paragraphs; 

  

 154 

	 	(vii)	use its best endeavours to help the Vendor and the UPF meet any statutory obligations which relate to the Relevant Employees during the Holding Period; 

  

	 	(viii)	give the notice required under Clause 23(b)(i) of the Trust Deed of the UPF to terminate its participation in the UPF with effect from the day before the Scheme Change Date; and

  

	 	(ix)	return the forms of consent referred to in paragraph 5(D) to the UPF. 

  

	8.	METHOD OF CALCULATION OF THE RELEVANT CAPITAL SUM 

  

	 	(A)	The Relevant Capital Sum shall be calculated as the sum of: 

  

	 	(i)	the transfer payment in respect of the Transferring Members, which is: 

  

	 	(a)	the amount as at the Completion Date calculated in accordance with the basis set out in the Statement from the Vendor’s Actuary comprised in Annex A to this Schedule;

  

	 	(b)	adjusted in respect of the period from the Completion Date to 20th August, 2001 by reference to interest at the rate of 7.5 per cent. per annum to give its value as at 20th August,
2001; 

  

	 	(c)	multiplied by the Timing Adjustment for the period from and including 20th August, 2001 to and excluding the Scheme Change Date, and 

  

	 	(ii)	the Net Relevant Contributions paid to the UPF in respect of Transferring Members during the Holding Period, each such Net Relevant Contribution being multiplied by the Timing
Adjustment applicable to the period from and including the date of payment of the Net Relevant Contribution to and excluding the Scheme Change Date. 

  

	 	(B)	In calculating the Relevant Capital Sum it shall be assumed there is no obligation to equalise benefits (to the extent not already equalised under the UPF) under Article 141
including, without limitation, accrued rights to guaranteed minimum pensions. 

  

	9.	DATA TO BE PROVIDED 

  

	 	(A)	As soon as reasonably practicable following the Completion Date, the Vendor shall procure that there is provided promptly to the Vendor’s Actuary and the Purchaser’s
Actuary all necessary data within its possession or under its power or control for computation of the Relevant Capital Sum as at the Completion Date (ignoring any adjustments under paragraph 8(A)(i)(b) and (c) and 8(A)(ii) and assuming that all
Relevant Employees become Transferring Members) and that this data is in all material respects true, complete and accurate. 

  

 155 

	 	(B)	As soon as reasonably practicable following the Scheme Change Date, the Vendor shall procure that there is provided promptly to the Vendor’s Actuary and the Purchaser’s
Actuary all necessary data within its possession or under its power or control for computation of the Relevant Capital Sum and that this data is in all material respects true, complete and accurate. 

  

	 	(C)	As soon as reasonably practicable following the Completion Date, the Purchaser shall procure that there is provided promptly to the Vendor’s Actuary and the Purchaser’s
Actuary all the necessary data within its or the UK Company’s possession or under its or the UK Company’s power or control for computation of the Relevant Capital Sum as at the Completion Date (ignoring any adjustments under paragraph
8(A)(i)(b) and (c) and 8(A)(ii) and assuming that all Relevant Employees become Transferring Members) and that this data is in all material respects true, complete and accurate. 

  

	 	(D)	As soon as reasonably practicable following the Scheme Change Date, the Purchaser shall procure that there is provided promptly to the Vendor’s Actuary and the Purchaser’s
Actuary all the necessary data within its or the UK Company’s possession or under its or the UK Company’s power or control (including, for the avoidance of doubt, the identity of the Transferring Members) for computation of the Relevant
Capital Sum and that this data is in all material respects true, complete and accurate. 

  

	10.	DETERMINATION OF RELEVANT CAPITAL SUM 

  

	 	(A)	Subject to the Purchaser complying with its obligations under paragraph 9(C), the Vendor shall use all reasonable endeavours to cause the Vendor’s Actuary to compute and
certify to the Purchaser’s Actuary the Relevant Capital Sum as at the Completion Date (ignoring any adjustments under paragraph 8(A)(i)(b) and (c) and 8(A)(ii) and assuming that all Relevant Employees become Transferring Members) no later than
2 months after the data has been provided to Vendor’s Actuary by the Purchaser and the Vendor. 

  

	 	(B)	Subject to the Purchaser complying with its obligations under paragraph 9(D), the Vendor shall use all reasonable endeavours to cause the Vendor’s Actuary to compute and
certify to the Purchaser’s Actuary the Relevant Capital Sum no later than 2 months after the data has been provided to Vendor’s Actuary by the Purchaser and the Vendor. 

  
 (C) 
  

	 	(i)	The Purchaser’s Actuary shall review the computation referred to in paragraph 10(B). 

  

	 	(ii)	The Purchaser undertakes to the Vendor to use all reasonable endeavours to cause the Purchaser’s Actuary to conduct the review under (i) above promptly.

  

 156 

	 	(D)	If the Purchaser’s Actuary is not satisfied with the computation referred to in paragraph 10(B), the Purchaser’s Actuary and the Vendor’s Actuary shall jointly
appoint the Actuary to certify the Relevant Capital Sum. If they fail jointly to appoint the Actuary, the Actuary shall be appointed by the President for the time being of the Institute of Actuaries at the instance of the party first applying to
him. 

  

	 	(E)	A certificate given by the Actuary under this paragraph 10 shall be conclusive and binding on the parties hereto. 

  

	 	(F)	The Actuary shall act as an expert and not as an arbitrator. 

  

	 	(G)	The costs of the Actuary shall be borne by the Purchaser and the Vendor in equal amounts or in such other proportions as the Actuary shall determine to be fair and reasonable in the
circumstances. 

  

	11.	VENDOR TO USE REASONABLE ENDEAVOURS TO PROCURE PAYMENT OF RELEVANT CAPITAL SUM 

  

	 	(A)	The Vendor shall use its reasonable endeavours to procure that the UPF shall subject to: 

  

	 	(i)	the specific approval of the Board of the Inland Revenue, 

  

	 	(ii)	the UK Company being named in a contracting-out certificate issued for contracting-out on the basis specified in Section 9(2B) of the Pension Schemes Act 1993 (as amended by the
Pensions Act 1995) in relation to the Purchaser’s Pension Scheme, and 

  

	 	(iii)	the requirements of Clause 19(b) (Bulk transfers-out) of the UPF Trust Deed, 

  

pay the higher of: 
  

	 	•	105 per cent. of the Relevant Capital Sum adjusted by the Timing Adjustment for the period from and including the day before the Scheme Change Date to and including the day before
the Payment Date (or, if earlier, to and including the day before the date of actual payment); and 

  

	 	•	an amount calculated by the Vendor’s Actuary as representative of the aggregate of cash equivalents (as calculated under Regulation 7 and 8(2) of the Occupational Pension
Schemes (Transfer Value) Regulations 1996) of the Transferring Members suitable for payment on Payment Date, 

  
 to the Purchaser’s Pension Scheme on or before the Payment Date. 
  

	 	(B)	The payment of the amount referred to in paragraph 11(A) shall be satisfied by the transfer of cash in an amount equal to that amount. 

  

 157 

	12.	SHORTFALL 

  

	 	(A)	Subject to the conditions in paragraph 11(A) (i), (ii) and (iii) having been satisfied, if the UPF does not the full amount referred to in paragraph 11(A) to the Purchaser’s
Pension Scheme on or before the Payment Date, the Vendor shall, no later than 14 days after the Payment Date, pay to the Purchaser, so far as possible by way of repayment of the Cash Consideration payable in respect of the Shares of Unipath Limited,
an amount in cash (the “Shortfall Payment”) calculated according to the formula: 

  
 (A-B) + C 
  
 where 
  

	 	A =	the higher of: 

  

	 	•	105 per cent. of the Relevant Capital Sum (adjusted by the Timing Adjustment for the period from and including the day before the Scheme Change Date to and including the day before
the Payment Date); and 

  

	 	•	an amount calculated by the Vendor’s Actuary as representative of the aggregate of cash equivalents (as calculated under Regulation 7 and 8(2) of the Occupational Pension
Schemes (Transfer Value) Regulations 1996) of the Transferring Members suitable for payment on Payment Date, 

  

	 	B =	the value of the amount (if any) paid by the UPF to the Purchaser’s Pension Scheme (adjusted by the Timing Adjustment for the period from and including the date of actual
payment by the UPF to and including the day before the Payment Date); 

  

	 	C =	interest at the Agreed Rate on (A-B) in respect of the period from and including the Payment Date to and excluding the date of payment; 

  
 The amount of the Shortfall Payment shall be determined by the Vendor’s
Actuary and agreed by the Purchaser’s Actuary or, in default of agreement, be determined under paragraph 10. 
  
 (B) 
  

	 	(i)	On receipt of the Shortfall Payment, the Purchaser shall promptly pay an amount, or procure that the UK Company shall promptly pay an amount, equal to (A - B) + C (as defined above)
into the Purchaser’s Pension Scheme (the “Shortfall Contribution”). 

  

	 	(ii)	 If, in respect of the Shortfall Contribution, the Purchaser obtains (in whole or in part) for the accounting period for which a payment equal to 

  

 158 

	 	 
the Shortfall Contribution is paid into the Purchaser’s Pension Scheme (or for any future accounting period) a deduction for part (or the whole) of that
payment which results in a Reduction in Taxable Profits for the purposes of corporation tax: 

  

	 	•	in the accounting period (or accounting periods) in which that deduction is obtained or, 

  

	 	•	in a case where that deduction exceeds the available taxable profits for the said accounting period (or any of the said accounting periods) but gives rise to a tax loss or other tax
relief that is eligible to be carried forward for offset against future taxable profits, in any future accounting period (or future accounting periods) in which such offset is obtained, 

  
 the Purchaser shall pay to the Vendor so far as possible by way of
repayment of the Cash Consideration payable in respect of the Shares of Unipath Limited an amount equal to: 
  

	 	•	the aggregate amount by which the Shortfall Contribution reduces the said taxable profits in the accounting period (or accounting periods) in question, 

  
 multiplied by 
  

	 	•	the marginal rate of tax applicable to the Purchaser for the accounting period (or, as the case may be, for each of the accounting periods) in which the deduction is obtained or (as
the case may be) the tax loss or other tax relief arising from that deduction is utilised. 

  

	 	(iii)	The Purchaser shall procure that a Reduction in Taxable Profits in respect of the Shortfall Contribution is obtained in priority to any Reduction in Taxable Profits which could be
obtained in respect of any other matter with a view to ensuring that full payment is made under (ii) above to the Vendor as soon as practicable after the Shortfall Contribution is paid to the Purchaser’s Pension Scheme.

  

	 	(iv)	Any payment under (ii) above shall be made by the Purchaser forthwith upon the date on which tax would otherwise have been paid if it had not been for the said Reduction in Taxable
Profits (or, if there is more than one date on which the relevant amount of tax would otherwise have been paid, whether by instalments or otherwise, the earliest of such dates). 

  

	 	(v)	 For the purpose of this paragraph (B) a “Reduction in Taxable Profits” includes not only a reduction in the taxable profits of the Purchaser
but also a reduction in the taxable profits for any accounting period of any member of any group or consortium to which any tax loss or other tax relief arising from or attributable to the payment by the 

  

 159 

	 	 
Purchaser of an amount equal to the Shortfall Contribution is surrendered by way of group relief or consortium relief in accordance with the provisions of
ss.402-413, Income and Corporation Taxes Act 1988. 

  

	13.	VOLUNTARY CONTRIBUTIONS 

  
 Notwithstanding the foregoing, the Voluntary Fund within the UPF and the benefits payable or prospectively or contingently payable therefrom and the
contributions payable thereto shall be disregarded in determining the Relevant Capital Sum except that there shall be added to the Relevant Capital Sum that part of the Voluntary Fund which is attributable to those Transferring Members who join the
Purchaser’s Pension Scheme on the Scheme Change Date and who agree to the transfer of their Voluntary Fund. 
  

	14.	ADJUSTMENTS IN RESPECT OF SENIOR MANAGERS 

  
 The following amendments shall apply in respect of the Senior Managers: 
  

	 	(A)	in addition to the contributions required in paragraph 3, the Purchaser shall procure that the UK Company shall, whilst the UK Company remains a participating employer pursuant to
paragraph 2, pay to Unilever UK Central Resources Limited 7% of Senior Managers’ Pensionable Pay (as defined in the governing documentation of 1999 SERA) plus the amount of any VAT due thereon, as if that amount represented contributions in
respect of such Senior Managers, 

  

	 	(B)	the letter issued to Senior Managers providing supplementary retirement and death benefits shall be regarded as part of the UPF for the purpose of paragraphs 4,5,6,7 and 8 (and
therefore, for the avoidance of doubt, for the purpose of paragraph 12) which shall therefore be read as if reference to the UPF in those paragraphs were also references to 1999 SERA and the references to Net Relevant Contributions in paragraph
8(A)(ii) shall include any contributions referred to in (A) above paid in respect of a Transferring Member, 

  

	 	(C)	the Purchaser shall enter into an agreement with each Relevant Employee who is a Senior Manager in a form satisfactory to the Vendor to achieve the purposes of this paragraph 14,
and 

  

	 	(D)	the Purchaser must procure that the Purchaser’s Pension Scheme which provides benefits in respect of a transfer of benefits from 1999 SERA and in respect of service after the
Completion Date which are equivalent to benefits under 1999 SERA is, to the extent such benefits are capable of tax approval, funded. 

  

	15.	NO ASSISTANCE TO BE GIVEN BY THE PURCHASER 

  

	 	(A)	 The Purchaser undertakes to take no action and to give no assistance whether directly or indirectly to any person in any manner which would or might result in

  

 160 

	 	 
the UPF having to pay a larger amount than the amount payable under paragraph 11 to the Purchaser’s Pension Scheme (for this purpose, the words
“105 per cent.” in paragraph 11 being substituted by the words “100 per cent.”). The Purchaser agrees that this undertaking extends to the Purchaser and any other company directly or indirectly controlled or connected with the
Purchaser and applies both during and after the Holding Period. 

  

	 	(B)	The Purchaser undertakes to the Vendor that: 

  

	 	(i)	before and on and after the Payment Date the trust deed and rules of the Purchaser’s Pension Scheme will include a condition that the Purchaser’s approval is required to
the acceptance of any transfer payment to be made by the UPF to the Purchaser’s Pension Scheme, and 

  

	 	(ii)	it will not give such approval if the total payment proposed to be made to the Purchaser’s Pension Scheme by the UPF exceeds the amount payable under paragraph 11.

  

	16.	VENDOR’S UNDERTAKINGS 

  

	 	(A)	The Vendor agrees to indemnify and keep indemnified each of the Purchaser, the Purchaser’s Pension Scheme and the UK Company against any losses, liabilities, costs, damages or
expenses to make any payments to the UPF beyond the rate of 16.7% pursuant to paragraph 3(A)(i), including and pursuant to section 75 of the Pensions Act 1995. This indemnity shall not extend to any liability of the Purchaser to make contributions
to the UPF as a result of its breach of paragraph 7(A). 

  

	 	(B)	The Vendor will indemnify the Purchaser against any liability to provide retirement benefits on the grounds that a UK Employee or former employee of the UK Company was denied access
to the UPF or the Unilever Superannuation Fund in breach of Article 141 prior to the Completion Date to the extent such claim relates to the period prior to the Completion Date. 

  

	17.	AGREEMENT TO ACT PROMPTLY 

  
 The Purchaser and the Vendor will use their respective reasonable endeavours to ensure that they comply with all their obligations under this Schedule
promptly. 
  

	18.	PENSION WARRANTIES 

  

	 	(A)	Save in respect of: 

  

	 	•	the UPF; 

  

	 	•	the letters issued to Senior Managers referred to in paragraph 14; 

  

 161 

	 	•	the UK state scheme; 

  

	 	•	any arrangement the sole purpose of which is to provide benefits on injury or death; and 

  

	 	•	any arrangement which only provides death benefits secured by an insurance policy, 

  
 no member of the Vendor’s Group nor the UK Company (in this paragraph 18, the “Employer”): 

 

	 	(i)	has any obligation (whether legally binding or not) to:- 

  

	 	(a)	pay any pension; or 

  

	 	(b)	make any other payment on or after retirement or death; or 

  

	 	(c)	otherwise to provide “relevant benefits” (within the meaning of Section 612 of The Income and Corporation Taxes Act 1988) 

  
 to, or in respect of, any UK Employee (or spouse or dependant of any of
them) such UK Employee; and 
  

	 	(ii)	is a party to or obligated to contribute to any scheme or arrangement having as its purpose, or one of its purposes, the making of any such payments or the provision of any such
benefits to, or in respect of, any UK Employee (or spouse or dependant of any of them). 

  

	 	(B)	Full details of the UPF insofar as it relates to the Relevant Employees are comprised in the Data Room and up-to-date and complete copies of the following documents are comprised in
the Data Room: 

  

	 	•	the deeds, documents and announcements (to extent not already reflected in the trust deed) currently governing the UPF which contain particulars of benefits and entitlements and a
copy of the latest trustee report and accounts and actuarial valuation; and 

  

	 	•	a full list of Relevant Employees as at the 1st July, 2001. 

  

	 	(C)	The UPF is an “exempt approved scheme” (within the meaning of Chapter I of Part XIV of The Income and Corporation Taxes Act 1988) and has at all times complied with and
been administered in all material respects in accordance with all applicable laws, regulations and requirements, including the requirements of the Inland Revenue for continued approval as an exempt approved scheme or of the National Insurance
Contributions Office on behalf of the Inland Revenue for continued eligibility for contracting-out of the UK state scheme and of trust law. So far as the Vendor is aware, there is no reason why approval of the UPF by the Board of Inland Revenue
should be withdrawn. 

  

 162 

	 	(D)	The UK Company holds or is named in an appropriate contracting-out certificate as defined in the Pension Schemes Act 1993. 

  

	 	(E)	Contributions to the UPF payable by the UK Company are not paid in arrears and all contributions to, and expenses of, the UPF which have fallen due for payment by the UK Company
have been paid. 

  

	 	(F)	There is no established practice in relation to the exercise of discretion under the UPF to provide benefits to or in respect of the Relevant Employees other than in accordance with
the Relevant Employees’ or their dependants’ entitlements under the UPF. For the avoidance of doubt, the Purchaser is required, subject to the terms of paragraph 4(B) and 5(B), to maintain established practices as to the exercise of
discretions in relation to benefits notwithstanding any breach of this warranty (F) and that obligation shall be taken into account for the purpose of assessing damages for any breach of this warranty (F). 

  

	 	(G)	There is no dispute with regard to the benefits payable under the UPF to or in respect of any UK Employee which is material in the context of the total liabilities in respect of the
pre-Completion pensionable service of the UK Employees and no legal proceedings by or against the trustees of the UPF in their capacity as such in respect of such benefits are pending, threatened or expected and so far as the Vendor is aware there
is no fact or circumstance likely to give rise to such proceedings. 

  

 163 

 [Annexes Omitted] 
  

 164 

 Part B NON-UK PENSIONS 
  

	1.	DEFINITIONS 

  

	(A)	In this Part B of this Schedule the following expressions shall have the meanings respectively assigned to them: 

  

			
	“Benefits”	  	means any pension, lump sum, gratuity, payment after termination of employment of costs (including, without limitation, medical, dental or other healthcare costs), or other like benefit
provided or to be provided:
		
	 	  	 •      on or after retirement;

		
	 	  	 •      on death;

		
	 	  	 •      on or after termination of employment, except to the extent the benefits referred to above are
enhanced where such termination is on account of redundancy or at the request of the employer;

		
	 	  	 •      on or in connection with disability,

		
	 	  	but excluding:
		
	 	  	 •      any risk benefit the payment of which is insured with an external insurance company;
and

		
	 	  	 •      any benefit provided under an arrangement the sole purpose of which is to provide benefits on
death.

		
	“Non-UK Company”	  	means Unipath Diagnostics GmbH, Unipath Scandinavia A. B and Unipath B.V;
		
	“Purchaser’s Group Plan”	  	means any Plan of any member of the Purchaser’s Group under which Benefits are provided or, if the context so requires, the trustees or managers of any such Plan.
		
	“Purchaser’s Non-UK Actuary”	  	means such actuaries or firms of actuaries as the Purchaser may determine for the purpose of this Part B of this Schedule.

  

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	“Relevant Non-UK Employee”	  	means a Non-UK Employee and, if he becomes employed within 6 months of Completion by a member of the Purchaser’s Group, each member of the Dutch Sales Staff, with Benefits under any
Vendor’s Non-UK Pension Plan.
		
	“Retained Benefits”	  	means those Benefits under Vendor’s Non-UK Pension Plans which are listed as “Retained” in Annex A to this Part B.
		
	“Vendor’s Non-UK Actuary”	  	means such actuaries or firms of actuaries as the Vendor may determine for the purpose of this Part B of this Schedule.
		
	“Vendor’s Non-UK Pension Plans”	  	means those plans set out in Annex A to this Part B.

  

	(B)	References in this Part B of this Schedule to paragraphs are to paragraphs of this Part B of this Schedule. 

  

	2.	BENEFITS TO BE PROVIDED BY THE PURCHASER 

  

	(A)    (i)	In relation to each Relevant Non-UK Employee, the Purchaser will continue to provide or procure to be provided equivalent Benefits in respect of service: 

 

	 	(a)	prior to the Completion Date, and 

  

	 	(b)	for the period of 3 years on and after the Completion Date 

  
 to the Benefits of that Relevant Non-UK Employee immediately before the Completion Date and payable, subject in the case of the exercise of discretions to
paragraph 2(A)(iv), as of right. The obligation under (a) shall not apply to Benefits of a Relevant Non-UK Employee which remain to be provided by a funded Vendor’s Non-UK Pension Plan or to Retained Benefits. 
  

	 	(ii)	The Purchaser agrees that, where a Relevant Non-UK Employee has Benefits in respect of service prior to the Completion Date in a funded Vendor’s Non-UK Pension Plan (other than
Retained Benefits), it will establish or nominate an appropriate plan which, subject to applicable law, is capable of accepting a transfer of such Benefits, or in the case of the Unicare Savings Plan in the United States, to which an individual can
elect to rollover benefits from the relevant Vendor’s Non-UK Pension Plan and the Purchaser will, or will procure that, each Relevant Non-UK Employee is offered the opportunity to transfer or rollover such Benefits. 

  

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	 	(iii)	Any transfer payment from a funded Vendor’s Non-UK Pension Plan to any such plan established or nominated by the Purchaser shall be calculated by Vendor’s Non-UK Actuary
in accordance with applicable law and local practice in relation to the Plan in question. 

  

	 	(iv)	Where there is an established practice as to the exercise of discretions in relation to Benefits, the Purchaser shall continue that practice in relation to the Benefits at
(A)(i)(a) and (b) above. In relation to each of the practices as to the exercise of discretions referred to in Annex C to this Part B, the Purchaser shall make an announcement to the Relevant Non-UK Employees which is in
form and substance to the reasonable satisfaction of the Vendor that it will continue that practice in relation to the Benefits at (A)(i)(a) and (b) above. However the Purchaser shall have the same rights of variation and
discontinuance of that practice as the relevant member of the Vendor’s Group has at the date of this Agreement. 

  

	 	(v)	The obligations under (i) to (iv) above shall continue in force even if the Purchaser disposes of a member of the Purchaser’s Group or all or any part of the
business thereof and accordingly the Purchaser shall procure that the buyer concerned honours such obligations in respect of each Relevant Non-UK Employee concerned in such a disposal. 

  

	(B)	The Purchaser shall procure that, in the satisfaction of its obligation under paragraph 2(A), compulsory contributions shall not be payable by a Relevant Non-UK Employee,
except to the extent otherwise expressly agreed in writing by that Relevant Non-UK Employee, at a rate greater than the rate (if any) at which: 

  

	 	(i)	he pays compulsory contributions at the Completion Date, for a period of 1 year from the Completion Date or, if shorter, the period expiring on the date on which he is required to
contribute to the Vendor’s Non-UK Pension Plan of which he was a member immediately prior to the Completion Date under the provisions of that plan, if he is then an active member of that plan, or on which he would have been required to
contribute to the relevant Vendor’s Non-UK Pension Plan under the provisions of that plan, had he then been an active member of that plan; and 

  

	 	(ii)	he could have been required to contribute to the Vendor’s Non-UK Pension Plan in question under the provisions of that Plan in force immediately prior to the Completion Date
but for any surplus or deficit in that Plan, for the remainder of the period referred to in paragraph 2(A)(i)(b) after the expiry of the period in (i) above. 

  

	(C)	For the purpose of (A) above: 

  

	 	(i)	“equivalent” means with an equivalent or greater value and will be determined, in the case of defined benefit Benefits, using the following actuarial
valuation method and assumptions: 

  

	 	(a)	the same as those used in the most recent actuarial valuation of the plan published on or before the date of this Agreement to which the Benefits relate and, in the case of a funded
plan, also used for actually funding those benefits, modified to such extent as may be agreed in writing by the Vendor’s Non-UK Actuary and the Purchaser’s Non-UK Actuary and the procedure referred to in paragraph 3 shall apply if
any such modification is not so agreed, and 

  

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	 	(b)	if there is no such actuarial valuation, such reasonable actuarial method and assumptions as may be agreed between the Vendor and the Purchaser or, in default of agreement, as
determined under paragraph 3 

  
 provided that: 
  

	 	•	in the case of any Relevant Non-UK Employee with Benefits under the UVO in Germany, equivalent Benefits under the relevant Purchaser’s Group Plan will be identical to those
under the UVO; 

  

	 	•	in the case of any Relevant Non-UK Employee with Benefits under the Vendor’s Non-UK Pension Plan in France which provides a lump sum benefit (the “French Lump-Sum
Plan”), equivalent Benefits under the relevant Purchaser’s Group Plan will be identical to those under the French Lump Sum Plan; 

  

	 	•	this paragraph 2(C)(i) does not apply in relation to the Netherlands (see paragraph 2(D)); 

  

	 	•	this paragraph 2(C)(i) does not apply in relation to the US (see paragraph 2(F)). 

  

	 	(ii)	equivalent Benefits in respect of service prior to Completion Date must, in addition to satisfying (C)(i) above, also be of a type or form approved by the Vendor.

  

	 	(iii)	It is agreed that defined contribution or money purchase benefits (“DC Benefits”) in place of Benefits which are of a defined benefit type will not normally
be considered “equivalent” except where the equivalent Benefits are in respect of Employees in the Netherlands, France or the US. 

  

	 	(iv)	For the purpose of this paragraph 2, where the Purchaser is permitted to provide Benefits on a DC Benefit basis, “equivalent” shall relate to Benefits exclusive of
administration costs and the Vendor and the Purchaser agree to operate the provisions of this paragraph 2 in accordance with that principle. 

  

	(D)    (i)	This paragraph 2(D) applies in respect of any Relevant Non-UK Employee with Benefits under the Progress Pension Fund in the Netherlands. 

  

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	 	(ii)	In relation to each month of service on and after the Completion Date, the employer contribution paid in respect of each such Employee concerned for equivalent DC Benefits must not
be less than the aggregate of: 

  

	 	•	the Unilever Dutch Accounting Cost for the Employee in question in relation to the Progress Pension Fund; and 

  

	 	•	in relation to the period referred to in paragraph 2(B)(i), (A-B), where: 

  

	 	A	represents the amount of monthly contribution he could have been required to contribute to the Progress Pension Fund in question under the provisions of that Plan in force
immediately prior to the Completion Date but for any surplus or deficit in that Plan; and 

  

	 	B	represents the amount (if any) of monthly compulsory contribution he pays to the Progress Pension Fund at the Completion Date; 

  
 For this purpose, “Unilever Dutch Accounting Cost” means
the employer cost, expressed as a percentage of pensionable pay (over the period referred to below), less any allowance included for administration costs, calculated in accordance with the latest actuarial method and assumptions in relation to the
Progress Pension Fund used for Vendor’s Group accounting purposes prior to the Completion Date, in respect of the period of 12 months immediately prior to the Completion Date divided by 12 on the assumption that the Progress Pension Fund is
neither in surplus nor in deficit or calculated on such other basis as the Vendor and the Purchaser shall agree, provided that the provisions of paragraph 3 shall apply in the event that there is no such agreement. 
  

	 	(iii)	In relation to service prior to the Completion Date, the Vendor and the Purchaser shall use their respective reasonable endeavors to agree a treatment of the Benefits in respect of
each such Employee that provides compensation for the loss of continuous service under the Progress Pension Fund which shall be delivered through a combination of: 

  

	 	•	the deferred benefits of the Employee under the Progress Pension Fund (where these remain to be provided under the Progress Pension Fund) together with any improvement made to them
or, at the option of the Employee concerned, the transfer of his benefits under the Progress Pension Fund to the relevant Purchaser’s Group Plan; and 

  

	 	•	a lump sum addition to the opening balance credited to the Employee’s DC Benefit account in the relevant Purchaser’s Group Plan and/or extra employer contributions spread
over a future period; 

  
 with the objective that
the aggregate value as at the Completion Date of all such elements, to the extent applicable, in respect of each such Employee, 

  

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calculated on the basis of the actuarial method and assumptions in relation to the Progress Pension Fund used for Vendor’s Group accounting purposes
prior to the Completion Date, should be equivalent to the value as at Closing of that Employee’s benefits under the Progress Pension Fund on the basis of that actuarial method and assumptions. 
  

	 	(iv)  (a)	To the extent so agreed, the Vendor’s Non-UK Actuary shall determine the value in local currency as at the Completion Date of: 

  

	 	•	the part of such aggregate value referred to at (iii) above as at the Completion Date provided under the Purchaser’s Group Plan, using the actuarial method and assumptions used
in the latest actuarial valuation of the Progress Pension Fund used for Vendor’s Group accounting purposes before the date of this Agreement; less 

  

	 	•	the assets transferred from the Progress Pension Fund to the Purchaser’s Group Plan, adjusted in respect of the period from the date of transfer to the Completion Date using a
basis consistent with that adopted by the Progress Pension Fund for adjusting the value of assets transferred from the Completion Date to the date of transfer, 

  
 and shall provide such calculation and the amount of any resulting shortfall to the Purchaser’s Non-UK Actuary.

  

	 	(b)	Paragraph 9 of Part A of this Schedule shall apply mutatis mutandis. 

  

	 	(c)	Within 10 Business Days after the value referred to in (a) has been agreed or determined, the Vendor shall pay to the Purchaser, so far as possible by way of repayment of the Cash
Consideration payable in respect of the Shares of Unipath B.V., an amount in pounds sterling (converted from Euros at the closing mid-point exchange rates appearing in The Financial Times on the last Business Day prior to the date of payment) equal
to: 

  

	 	•	any shortfall referred to at (a) above multiplied by (1.0 less X), where X represents the standard maximum corporate tax rate for the Netherlands as at the Completion Date
(expressed as a percentage rate divided by 100); 

  

	 	•	adjusted by the discount rate used in the actuarial assumptions referred to in (a) above in respect of the period from the Completion Date to the day before the date of payment.

  

	(E)    (a)	This paragraph 2(E) shall apply in place of paragraph 2(C)(i) in respect of Vendor’s Non-UK Pension Plan in France which provides a pension benefit (the “French
Pension Plan”) in France. 

  

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	 	(b)	The French Pension Plan will be replaced with effect from 1st January, 2002 in relation to employees of the Vendor’s Group in France by a plan providing DC Benefits, summary
details of which are set out in the Data Room at France Part A Legal 1.10 and 1.11 (the “Replacement French DC Plan”). “Equivalent” Benefits in respect of each Relevant Non-UK Employee with Benefits
under such Plan shall mean that the employer contribution rate applicable in respect of him under the Purchaser’s Group Plan shall be equal to or greater than the employer contribution rate that would have applied to him under the Replacement
French DC Plan for the period referred to in (A)(i)(b) above had he remained an employee of the Vendor’s Group. 

  

	(F)    (a)	This paragraph 2(F) shall apply in place of paragraph 2(C)(i) in respect of the US. 

  

	 	(b)	In respect of the period referred to at 2(A)(i)(a) above: 

  

	 	(1)	no transfer of benefits shall be made from the Unicare Retirement Plan or the Unicare Retirement Preservation Plan; 

  

	 	(2)	In relation to the Unicare Retirement Plan and the Unicare Retirement Preservation Plan, the Vendor and the Purchaser agree that each US Employee who is a member of either such Plan
(or in a waiting period to become such a member) and who becomes employed by a member of the Purchaser’s Group with effect from the Completion Date (“Unicare Pension Plan Members”) shall be compensated, by the provision
of Benefits under a Purchaser’s Group Plan, in respect of the loss of salary linkage to the benefits accrued in respect of the service prior to the Completion Date and retained by the Unicare Retirement Plan and the Unicare Retirement
Preservation Plan. The Vendor and the Purchaser agree that such compensation shall be provided: 

  

	 	(aa)	through a Buyer Group Plan which is tax qualified in the US; and/or 

  

	 	(bb)	to the extent all or part of such compensation cannot in compliance with applicable law be provided under (aa) above, through a Purchaser’s Group Plan which is a preservation
plan; and/or 

  

	 	(cc)	to the extent such compensation cannot be provided under (aa) and/or (bb) above in compliance with applicable law, in cash. 

  

	 	(c)	 In relation to (b) above, the Vendor shall cause the Vendor’s Non-UK Actuary and the Purchaser shall cause the Purchaser’s Non-UK Actuary, using the
actuarial method and assumptions used in the latest actuarial valuation of the 

  

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applicable Plan used for Vendor’s Group accounting purposes before the date of this Agreement, to calculate in respect of each Unicare Pension Plan
Member the value in local currency as at the Completion Date of the compensation provided under (aa), (bb) and/or (cc) above. 

  

	 	(d)	In relation to the Unicare Retiree Medical Plan, the Vendor and the Purchaser agree that with respect to each U.S. Employee who becomes employed by a member of the Purchaser’s
Group with effect from the Completion Date and is in a class of employees eligible for coverage under the Unicare Retiree Medical Plan immediately prior to the Completion Date (“Unicare Medical Employee”), the Vendor shall
cause the Vendor’s Non-UK Actuary and the Purchaser shall cause the Purchaser’s Non-UK Actuary, using the actuarial method and assumptions used in the latest actuarial valuation of the Unicare Retiree Medical Plan used for Vendor’s
Group accounting purposes before the date of this Agreement, to calculate in respect of each Unicare Medical Employee the accumulated postretirement benefit obligation within the meaning of FAS 106 (“APBO”) in local currency
as at the Completion Date under the Unicare Retiree Medical Plan and convert such amount into equivalent service for retirement eligibility purposes for retiree medical benefits under a retiree medical plan to be established or maintained by the
Purchaser or a member of the Purchaser’s Group. The Purchaser shall also permit the Unicare Medical Employees to participate in such retiree medical plan in respect of service after the Completion Date. 

  

	 	(e)	To the extent the value as at the Completion Date of the credit in respect of past service referred to in (d) above in respect of any U.S. Medical Employee, calculated on the basis
of the actuarial method and assumptions referred to in (c) above, is less than the APBO in respect of that Unicare Medical Employee, the Purchaser shall provide compensation of an amount equal to that loss of value to that Unicare Medical Employee
in the same manner as set out in (F)(b)(2) above. 

  

	 	(f)	Paragraph 9 of Part A of this Schedule shall apply mutatis mutandis. 

  

	 	(g)	Within 10 Business Days after the value referred to in (c) above has been agreed or determined, the Vendor shall pay to the Purchaser, so far as possible by way of repayment of the
Cash Consideration payable in respect of the U.S. Business, an amount in pounds sterling (converted from US dollars at the closing mid-point exchange rates appearing in The Financial Times on the last Business Day prior to the date of payment)equal
to: 

  

	 	•	that value multiplied by (1.0 less X), where X represents the standard maximum corporate tax rate for the U.S. as at the Completion Date (expressed as a percentage rate divided by
100); and 

  

	 	•	adjusted by the discount rate used in the actuarial assumptions referred to in (c) above in respect of the period from the Completion Date to the day before the date of payment.

  

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	 	(h)	In relation to each month of service on and after the Completion Date, or, for those Unicare Pension Plan Members who are at Completion in a waiting period before they become
eligible to become a member, on and after the day immediately following the expiry of such waiting period, the employer contribution paid in respect of each Unicare Pension Plan Member concerned for equivalent DC Benefits must not be less than the
Unilever US Pension Accounting Cost for the Unicare Pension Plan Member in question in relation to the relevant Vendor’s Non-UK Pension Plan. 

  
 For this purpose, “Unilever US Pension Accounting Cost” means the FAS 87 service cost, expressed as a
percentage of pensionable pay (over the period referred to below),less any allowance included for administration costs, calculated in accordance with the latest actuarial method and assumptions used in relation to the relevant Vendor’s Non-UK
Plan for Vendor’s Group accounting purposes prior to the Completion Date, in respect of the period of 12 months immediately following the Completion Date divided by 12 on the assumption that the Plan concerned is neither in surplus nor in
deficit or calculated on such other basis as the Vendor and the Purchaser shall agree, provided that the provisions of paragraph 3 shall apply in the event that there is no such agreement. For the purpose of this calculation, the one year waiting
period for eligibility for membership of the relevant Vendor’s Non-UK Plan shall be disregarded. 
  

	 	(i)	In relation to each month of service on and after the Completion Date, the employer cost under the relevant Purchaser’s Group Plan (calculated on a basis consistent with the
Unilever US Medical Accounting Cost) in respect of each Unicare Medical Employee concerned for equivalent retiree medical benefits must not be less than the Unilever US Medical Accounting Cost for the Unicare Medical Employee in question in relation
to the Unicare Retiree Medical Plan. 

  
 For this
purpose, “Unilever US Medical Accounting Cost” means the FAS 106 cost, expressed as a percentage of pensionable pay (over the period referred to below),less any allowance included for administration costs, calculated in accordance
with the latest actuarial method and assumptions used in relation to the Unicare Retiree Medical Plan for Vendor’s Group accounting purposes prior to the Completion Date, in respect of the period of 12 months immediately following the
Completion Date divided by 12 or calculated on such other basis as the Vendor and the Purchaser shall agree, provided that the provisions of paragraph 3 shall apply in the event that there is no such agreement. 
  

	 	(j)	Payments under (h) and (i) above shall be made by the Purchaser in accordance with the provisions of paragraph 2(F)(b)(2), mutatis mutandis. 

  

	 	(k)	the Purchaser must recognise or cause to be recognised each U.S. Employee’s service with a member of the Vendor’s Group prior to Completion for all purposes under the
Purchaser’s Group Plan which provides Benefits in respect of such U.S. Employees in replacement of those provided under the Unicare Health and Welfare Plan (post-retirement). 

  

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	(G)	whether or not a transfer is made to a member of the Purchaser’s Group or a Purchaser’s Group Plan in respect of past service benefits, the Purchaser must recognise or
cause to be recognised each Relevant Non-UK Employee’s service with a member of the Vendor’s Group prior to Completion for eligibility, vesting, retirement eligibility and (where related to length of service) benefit scales purposes and,
in particular, equivalent Benefits in respect of the service of each Relevant Non-UK Employee for the period referred to in paragraph 2(A)(i) must vest: 

  

	 	•	on the same or shorter timescale; and 

  

	 	•	at least in the same circumstances, 

  
 as if the Relevant Non-UK Employee concerned had continued to be an active member of the Vendor’s Non-UK Pension Plan in question for so long as he
remains employed by a member of the Purchaser’s Group or any buyer referred to in paragraph 2(A)(v) (whether or not continuing to accrue benefits under the Purchaser’s Group Plan in question). 
  

	(H)	The mechanics of achieving (A) above will be determined by the applicable laws of the jurisdiction in question and the legal provisions conferring and governing the Benefits.

  

	(I)	Where any transfer of Benefits or assets in respect of those Benefits requires the approval or consent of any regulatory body or any third party (including the Relevant Non-UK
Employees), the Vendor and the Purchaser shall use their respective reasonable endeavours to obtain such approvals and consents. 

  

	(J)	The Purchaser shall procure that admission of a Relevant Non-UK Employee to the applicable Purchaser’s Group Plan is not conditional on his consenting to the transfer of his
Benefits in any Vendor’s Non-UK Pension Plan in respect of his past service. 

  

	(K)	Where Benefits are provided under a Vendor’s Non-UK Pension Plan on the death or disability of a Relevant Non-UK Employee or his spouse, child or dependant, equivalent Benefits
must be provided on such events which are payable in circumstances and under conditions which are not materially less favourable to the beneficiary concerned as those which would have applied had the death or disability occurred whilst the
beneficiary was a beneficiary of the Vendor’s Non-UK Pension Plan in question under the provisions of that Plan in force immediately prior to the Completion Date. For the purpose of this paragraph 2(K), the benefit payable under the
applicable Purchaser’s Group Plan in the US may be reduced by the amount of any benefit payable on the same event in respect of the individual concerned by the relevant Vendor’s Non-UK Pension Plan in the US. 

  

	(L)	Any announcement to be issued by the Vendor or a member of the Purchaser’s Group in relation to Benefits the subject of this paragraph 2 must be consistent with the
terms of this paragraph 2 and, prior to the issue of any such announcement, the Vendor or, as the case may be, the Purchaser, shall provide to the other a copy of the intended announcement and shall not issue it without prior consultation
with the other. 

  

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	(M)	The Purchaser’s agreement to the provisions of this paragraph 2 is given by the Purchaser on the express understanding that, if the Purchaser is in breach of any of such
provisions, the Vendor may, at its absolute discretion, and without limitation, seek to procure compliance with such provisions by the Purchaser by applying to the court for damages and/or specific performance. 

  

	(N)	The Vendor shall use all reasonable endeavours to permit Unipath Diagnostics GmbH to participate in the Berolina Pensionskasse, in relation to those Relevant Non-UK Employees who
participate in the Berolina Pensionskasse immediately prior to the Completion Date, for a temporary period after the Completion Date not to exceed one year, subject to the obtaining of appropriate consents and approvals and on the basis that no
employer or employee contributions are payable in respect of that period. 

  

	(O)    (i)	In this paragraph 2(O), references to the “Chicogo Inactives” are references to those former employees of Unipath Diagnostics GmbH who have Benefits under
the UVO immediately prior to the Completion Date (“UVO Benefits”). 

  

	 	(ii)	The Vendor shall use all reasonable endeavours to procure that the consent of the Chicogo Inactives is obtained, prior to the expiry of the period of one year after the Completion
Date, to the transfer of the obligation to provide UVO Benefits in respect of them to a member of the Vendor’s Group. 

  

	 	(iii)	The following provisions of this paragraph 2(N) apply in respect of those Chicogo Inactives (if any) whose consent referred to in (ii) above is not obtained within the period
referred to at (ii) above (“Non-Consenting Chicogo Inactives”). 

  

	 	(iv)	As soon as reasonably practical after the expiry of the period of one year after the Completion Date, the Vendor’s Non-UK Actuary shall determine the value in Euros as at the
Completion Date of the UVO Benefits applicable in respect of the Non-Consenting Chicogo Inactives in accordance with the actuarial method and assumptions set out in Annex B to this Part B, together with an appropriate adjustment to reflect the value
as at the Completion Date of any payments made under (vii) below, and shall provide such calculation to the Purchaser’s Non-UK Actuary. 

  

	 	(v)	Paragraph 9 of Part A of this Schedule shall apply mutatis mutandis. 

  

	 	(vi)	Within 10 Business Days after the value referred to in (iv) has been agreed or determined, the Vendor shall pay to the Purchaser, so far as possible by way of repayment of the Cash
Consideration payable in respect of the Shares of Unipath Diagnostics GmbH, an amount in pounds sterling (converted from Euros at the closing mid-point exchange rates appearing in The Financial Times on the last Business Day prior to the date of
payment)equal to (A + B) adjusted by C, where: 

  

	 	A	represents the part of that value which has been recognised for tax purposes; 

  

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	 	B	represents the part of that value which has not been recognised for tax purposes, multiplied by (1.0 less X), where X represents the standard maximum corporate tax rate for Germany
as at the Completion Date (expressed as a percentage rate divided by 100); and 

  

	 	C	represents the discount rate referred to in Annex B to this Part B in respect of the period from the Completion Date to the day before the date of payment. 

 

	 	(vii)	The Vendor shall, at its cost, administer and procure the payment of any payment falling due to any Chicogo Inactive during the period from the Completion Date to the expiry of the
period of one year after the Completion Date. The Purchaser shall provide all reasonable assistance to the Vendor in connection with such payments, including the provision of any relevant data or information in the possession or control of the
Purchaser. 

  

	3.	DISPUTES 

  

	(A)	Any dispute between the Vendor and the Purchaser or between the Vendor’s Non-UK Actuary and the Purchaser’s Non-UK Actuary concerning the determination or valuation or
agreement of any matter to be specifically determined, valued or agreed under this Part B of this Schedule shall, in the absence of agreement between them, be referred to an independent actuary agreed by the Vendor and the Purchaser or,
failing such agreement, appointed by the President for the time being of the Institute of Actuaries in England at the request of the party first applying. 

  

	(B)	Such independent actuary shall act as an expert and not as an arbitrator. His decision shall be final and binding on the parties and his expenses shall be borne between the Vendor
of the one part and the Purchaser of the other part as the independent actuary may direct. 

  

	4.	EXPATRIATE EMPLOYEES 

  
 The general principles to be applied in relation to those Employees who are employed in the Transferring Business as at the Completion Date in a country
which is not their home country (“Expatriates”) are that: 
  

	(A)	the Purchaser shall provide or procure the provision of Benefits to Expatriates in accordance with the terms promised to those Expatriates by the relevant member of the
Vendor’s Group or any Company; and 

  

	(B)	the Vendor and the Purchaser shall, in relation to each such Expatriate, agree the most appropriate and cost effective way for those Benefits to be provided having regard to
applicable laws and tax regimes. 

  

	5.	PENSION WARRANTIES 

  

	(A)	Save in respect of: 

  

	 	•	the Vendor’s Non-UK Pension Plans; 

  

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	 	•	the relevant state scheme or any industry-wide scheme; 

  

	 	•	any arrangement the sole purpose of which is to provide benefits on injury or death; and 

  

	 	•	any arrangement which only provides death benefits secured by an insurance policy, 

  
 no member of the Vendor’s Group, nor any Non-UK Company (the “Employer”) 
  

	 	(i)	has any obligation to: 

  

	 	•	pay any pension; 

  

	 	•	make any other payment on or after retirement or death; or 

  

	 	•	otherwise to provide Benefits 

  
 to, or in respect of, any Relevant Non-UK Employee or spouse or dependant of such Relevant Non-UK Employee; and 
  

	 	(ii)	is a party to or obligated to contribute to any scheme or arrangement having as its purpose, or one of its purposes, the making of any such payments or the provision of any such
benefits to, or in respect of, any Relevant Non-UK Employee or spouse or dependant of such Relevant Non-UK Employee. 

  

	(B)	Up-to-date and complete copies of the governing documentation (including explanatory booklets and announcements to members to the extent applicable) of each Vendor’s Non-UK
Pension Plan (other then the ITP in Sweden) are comprised in the Data Room. 

  

	(C)	Each Vendor’s Non-UK Pension Plan has at all times complied with applicable law and its governing documentation in all material respects. 

  

	(D)	There is no dispute with regard to the Benefits of the Relevant Non-UK Employees in any country which is material in the context of the total liabilities in respect of the
pre-Completion pensionable service of such Relevant Non-UK Employees and no legal proceedings by or against the Employer in respect of such Benefits is pending, threatened or expected, and so far as the Vendor are aware there is no fact or
circumstance likely to give rise to such proceedings. 

  

 177 

	(E)	[Annexes Omitted] 

  

 178 

 SCHEDULE 9 
 (Properties) 
  
 [Parts A
and B Omitted] 
  

 179 

 Part C TERMS OF SALE OF THE BEDFORD PROPERTY 
  

	1.	MATTERS TO WHICH THE SALE IS SUBJECT 

  
 The Bedford Property is sold subject to and (where appropriate) with the benefit of the following matters: 
  

	 	(i)	all local land charges and all matters capable of registration as local land charges; 

  

	 	(ii)	all notices served and orders, demands, proposals or requirements made by any local or other competent authority; 

  

	 	(iii)	all exceptions and reservations of whatever nature, all rights of way, water, light, air or other rights, easements, quasi-easements, wayleaves (whether constituted in the title
deeds or otherwise) and third party rights of possession or occupation; and 

  

	 	(iv)	the covenants, obligations and conditions on the part of the lessee contained in the Lease. 

  

	2.	VACANT POSSESSION 

  
 The Bedford Property is sold with vacant possession. 
  

	3.	TITLE 

  

	(A)	The relevant Designated Purchaser shall be deemed to be purchasing with full knowledge of the contents of all deeds and other documents of title relating to the Bedford Property
disclosed to the Purchaser by the Vendor prior to the date of this Agreement and shall raise no requisition or objection in relation to any such title. 

  

	(B)	The Vendor sells and shall transfer the Bedford Property with full title guarantee. 

  

	4.	PROPERTY CONSENTS 

  

	(A)	This paragraph 4 and paragraph 5 below apply to the Bedford Property where a Property Consent is required for the transfer or assignment to the relevant Designated
Purchaser and remains to be obtained as at Completion. 

  

	(B)	The Vendor shall use its reasonable endeavours at its own expense to obtain the Property Consent as soon as possible. The relevant Designated Purchaser shall provide to the landlord
lawfully requiring the same a direct covenant by the relevant Designated Purchaser with the landlord to observe and perform the terms of the Lease together with a sufficient reasonable guarantee or other reasonable security for such obligation on
such terms and in such form as the landlord is lawfully entitled to require. 

  

	(C)	The relevant Designated Purchaser shall supply all references and other evidence and information reasonably required by the landlord or any other third party in order to obtain the
Property Consent. 

  

 180 

	(D)	The Vendor shall pay the professional fees of the landlord incurred in connection with all applications for the Property Consent. 

  

	(E)	If the Property Consent shall not have been obtained by nine months after Completion the Vendor shall: 

  

	 	(i)	at its own expense make and diligently pursue an application to a Court of competent jurisdiction for a declaration that the Property Consent is being withheld unreasonably (where
the landlord is not entitled to withhold consent in such a manner) and if necessary pursue an appeal on a decision that consent is not being withheld unreasonably unless either the Vendor and the relevant Designated Purchaser agree that such an
application or appeal as applicable has no realistic prospect of success or the Vendor obtains advice from leading counsel to the same effect; and 

  

	 	(ii)	at its own expense apply to the landlord for a Property Approval to an underlease to the relevant Designated Purchaser for a term equal to the residue of the term of the relevant
lease (less three days) and otherwise on the same terms of such lease. 

  

	5.	DELAYED LEGAL COMPLETION 

  

	(A)	If the Property Consent has not been obtained by Completion in relation to the Bedford Property then the date for legal completion of the sale and purchase of the Bedford Property
shall be postponed to the tenth Business Day after the earlier of: 

  

	 	(i)	the date on which the Property Consent is obtained; 

  

	 	(ii)	the expiration of the period for the lodging of an appeal against a decision of a Court of competent jurisdiction that the Property Consent is being unreasonably withheld without
such appeal being lodged; and 

  

	 	(iii)	the relevant Designated Purchaser (if it so elects) giving notice that it wishes to complete the Bedford Property Transfer notwithstanding the non-issue of the Property Consent.

  

	(B)	Pending legal completion and with effect from Completion the Vendor will procure that in relation to the Bedford Property: 

  

	 	(i)	the relevant Designated Purchaser is permitted (with all persons authorised by it) to have the unrestricted use and occupation of the whole of the Bedford Property;

  

	 	(ii)	no contract is entered into disposing of any interest in or granting any right over or varying or surrendering the lease of the Bedford Property; 

  

	 	(iii)	subject to being put in funds by the relevant Designated Purchaser, the rents, service charges, outgoings and other sums reserved by the Lease are paid; and

  

 181 

	 	(iv)	a copy of any notice received in respect of the Bedford Property is promptly produced to the relevant Designated Purchaser and the Vendor takes at the request and cost of the
relevant Designated Purchaser all such appropriate action in response to such notice as the relevant Designated Purchaser shall properly require. 

  

	(C)	Pending legal completion and with effect from Completion the relevant Designated Purchaser will, in relation to the Bedford Property: 

  

	 	(i)	put the Vendor in funds so as to enable it to pay when due all rents, service charges and other outgoings payable in respect of the Bedford Property; 

  

	 	(ii)	observe and perform the covenants and conditions contained in the title deeds and documents relating to the Bedford Property including the Lease; and 

  

	 	(iii)	indemnify the Vendor against the acts or omissions of the employees, servants, agents, licensees and invitees of the relevant Designated Purchaser in or about the Bedford Property.

  

	(D)	The Purchaser acknowledges that as against any person from whom a Property Consent is to be obtained in accordance with this Agreement it has no right to possession or occupation of
the Bedford Property. 

  

	(E)	The Vendor acknowledges that pending legal completion it holds the Bedford Property on trust for the Purchaser and, for the avoidance of doubt, this includes any insurance monies to
which the tenant is entitled under the terms of the Lease. 

  

	6.	UNDERLEASE 

  

	(A)	This paragraph shall apply to the Bedford Property where a Property Consent is required and: 

  

	 	(i)	the Vendor and the relevant Designated Purchaser agree that the Property Consent has been reasonably withheld; or 

  

	 	(ii)	the Vendor having complied with its obligations under sub-paragraph 4(E)(i) the Court has refused to grant a declaration; or 

  

	 	(iii)	the Property Consent has not been issued by the date nine months after the date of this Agreement unless an application has been made to the Court for a declaration that the
Property Consent has been unreasonably withheld and such application has not been determined. 

  

	(B)	The Vendor agrees to grant and the relevant Designated Purchaser agrees to take up an underlease of the Bedford Property. 

  

	(C)	 The Vendor shall apply for and use its reasonable endeavours to obtain Property Approval and the relevant Designated Purchaser shall support such application in
like manner as the applications pursuant to paragraph 4 above. The Vendor will make an application to a Court of competent jurisdiction for a declaration that the Property 

  

 182 

	 	 
Approval is being withheld unreasonably upon request by the relevant Designated Purchaser (acting reasonably) (even though nine months has not elapsed since
Completion) and at the relevant Designated Purchaser’s expense. 

  

	(D)	Such underlease shall be completed on the tenth Business Day after the earlier of: 

  

	 	(i)	the Property Approval being obtained; and 

  

	 	(ii)	the expiry of the period for the lodging of an appeal against a decision made by a Court of competent jurisdiction that the Property Approval has been unreasonably withheld without
such appeal being lodged. 

  

	(E)	The underlease of the Bedford Property will be for a term equal to the unexpired term of the Lease less three days and will be otherwise on the same terms as the Lease with
provision for the rent to be the same as the rent agreed or determined from time to time under the Lease, a covenant by the underlessee to observe and perform the terms of the Lease other than those relating to the payment of rent and a covenant by
the underlessor to pay the rent reserved by the Lease. 

  

	(F)	Where the Property Consent is obtained or a declaration is obtained that such Property Consent has been unreasonably withheld after completion of such underlease this Agreement
shall continue to take effect for the purpose of assigning or transferring the Lease to the relevant Designated Purchaser subject to and with the benefit of the Underlease. 

  

	(G)	If no such application to Court as is contemplated in sub-paragraph (C) above is made or after the expiry of the period for lodging an appeal against the decision of a Court
of competent jurisdiction that the Property Approval is being unreasonably withheld, then the relevant Designated Purchaser shall be entitled (but not obliged) by written notice to the Vendor to take an underlease on the terms of sub-paragraph
(E) above notwithstanding the fact that the Property Approval has not been obtained. 

  

	7.	THE BEDFORD PROPERTY TRANSFER AND UNDERLEASE 

  

	(A)	Subject to paragraph 5, legal completion of the transfer of the Bedford Property shall take place on Completion. 

  

	(B)	On legal completion the Vendor will deliver the Bedford Property Transfer duly signed or executed to the relevant Designated Purchaser. 

  

	(C)	If the Vendor has applied to the landlord for its consent to an underlease in accordance with paragraph 6 and the Vendor has obtained such consent (but has not obtained a
consent for a transfer or an assignment), on legal completion the Vendor will deliver a duly executed underlease of the Bedford Property to the relevant Designated Purchaser and the relevant Designated Purchaser will accept the underlease and
deliver a duly executed counterpart to the Vendor. 

  

	(D)	 The Vendor will not by reason of any covenants implied by law or statute or otherwise expressed in the Bedford Property Transfer be deemed to covenant expressly or
impliedly that the obligations contained in the Lease of the Bedford Property relating to 

  

 183 

	 	 
its state and condition have been complied with and the Bedford Property Transfer will contain a declaration to that effect. 

  

	8.	APPORTIONMENTS 

  

	(A)	Subject to sub-paragraph (B), the income and outgoings of the Bedford Property shall be apportioned in accordance with the provisions of this paragraph.

  

	(B)	Before Completion the Vendor shall pay all outgoings payable in respect of the Bedford Property including all sums payable under the Lease which are due for payment on or before
Completion. 

  

	(C)	All rents, rent charges, rates, insurance premiums, gas, water, electricity and telephone charges, royalties and other outgoings relating to or payable or accruing in respect of the
Bedford Property down to Completion shall be borne by the Vendor and as from Completion shall be borne by the relevant Designated Purchaser and all rents, royalties and other periodical payments receivable or accruing in respect of the Bedford
Property down to and including Completion shall belong to the Vendor and as from Completion shall belong to the relevant Designated Purchaser. These outgoings and amounts receivable shall if necessary be apportioned accordingly provided that all
outgoings specifically referable to the extent of the use of any property or rights shall be apportioned according to the extent of such user. 

  

	(D)	Sums payable periodically shall be apportioned by charging or allowing: 

  

	 	(i)	for any payment period entirely attributable to one party, the whole of the instalment payable for that period; 

  

	 	(ii)	for any part of a payment period, a proportion on an annual basis. 

  

	(E)	If any sum payable in respect of any period falling wholly or partly prior to Completion has not been notified to the Vendor, a reasonable provisional apportionment shall be made on
the basis of the best estimate available. 

  

	(F)	Upon the amount referred to in sub-paragraph (E) being quantified or notified a final apportionment shall be made and the relevant party shall forthwith make an appropriate
balancing payment. 

  

	(G)	The relevant Designated Purchaser shall not be obliged to reimburse the Vendor in respect of any liability of the Vendor unless the Vendor has actually discharged the same.

  

	(H)	The net amount (if any) payable by or to the Vendor under this paragraph shall be agreed between the parties acting reasonably within 14 days after the date of this Agreement.

  

	9.	RENT REVIEWS 

  

	(A)	 This paragraph applies to any rent review under the Lease of the Bedford Property which is outstanding at the date of this Agreement or which commences between the

  

 184 

	 	 
date of this Agreement and legal completion (as the case may be). In this paragraph each such rent review is referred to as a “Review”.

  

	(B)	The Vendor shall conduct each Review in accordance with the instructions of the relevant Designated Purchaser, but the relevant Designated Purchaser shall not be entitled to give
the Vendor instructions which result in the Vendor being materially prejudiced in respect of any Review. No Review shall be agreed by the Vendor otherwise than on the basis that the reviewed rent shall be payable at a fixed rate from the review date
without further increase or decrease during the period for which the rent is being reviewed. 

  

	(C)	The Vendor shall take all such action as may be necessary to ensure that, in relation to every Review, the rights of the Vendor and those deriving title under it are preserved.

  

	(D)	The Vendor shall keep the relevant Designated Purchaser informed of the progress of every Review, shall provide the relevant Designated Purchaser with copies of all material written
documentation and correspondence and shall afford the relevant Designated Purchaser a reasonable opportunity to make representations. 

  

	(E)	The Vendor shall not agree a rent on a Review without the prior written consent of the relevant Designated Purchaser not to be unreasonably withheld. 

  

	(F)	On agreement or determination of the reviewed rent, the relevant Designated Purchaser shall pay to the Vendor the appropriate proportion of any decrease in rent under the Lease and
the Vendor shall pay to the relevant Designated Purchaser the appropriate proportion of any increase in rent under the Lease. Paragraph 8 shall apply for calculating that proportion. 

  

	10.	BREACH OF LEASE 

  

	(A)	This paragraph applies where, in relation to the Bedford Property, any of the following occurs on or after the date of this Agreement but before legal completion:

  

	 	(i)	a notice alleging a breach of the terms of the Lease (a “Default Notice”), whether in the form of a schedule of dilapidations or a notice under section 146
of the Law of Property Act 1925, is served; 

  

	 	(ii)	proceedings are commenced in respect of the breach, or alleged breach, of any of the tenant’s covenants in the Lease including, without limitation, proceedings for forfeiture
of the Lease, for damages or for an injunction; 

  

	 	(iii)	the landlord forfeits, or purports to forfeit, the Lease by peaceable re-entry. 

  

	(B)	The Vendor shall forthwith send a copy of the Default Notice or the proceedings to the relevant Designated Purchaser or shall inform the relevant Designated Purchaser forthwith of
the peaceable re-entry. 

  

	(C)	 The Vendor shall act in accordance with the relevant Designated Purchaser’s instructions in relation to the Default Notice, the proceedings or the peaceable
re-entry, but the relevant Designated Purchaser shall not be entitled to give the Vendor 

  

 185 

	 	 
instructions which result in the Vendor being materially prejudiced in respect of the Default Notice, the proceedings or the peaceable re-entry. In
particular, but without limitation, the Vendor shall: 

  

	 	(i)	take reasonable steps to remedy the breach complained of, if it is capable of remedy and where lawfully required in, or as a result of the Default Notice, make compensation in money
for the breach; 

  

	 	(ii)	contest the Default Notice if there are reasonable grounds for contesting it; 

  

	 	(iii)	where applicable, give a counter-notice claiming the benefit of the Leasehold Property (Repairs) Act 1938; and 

  

	 	(iv)	contest the proceedings and use all reasonable endeavours to obtain relief and against forfeiture. 

  

 186 

 SCHEDULE 10 
 (Completion Accounts and Variable Intra-Group Debt Statement) 
  
 [Intentionally Omitted] 
  

 187 

 SCHEDULE 11 
 (Employees) 
  
 [Intentionally Omitted] 
  

 188 

 SCHEDULE 12 
 (Allocation of Cash Consideration) 
  
 [Intentionally Omitted] 
  

 189 

 SCHEDULE 13 
 (Fixed Intra-Group Debt Amounts) 
  
 [Intentionally Omitted] 
  

 190 

 SCHEDULE 14 
 (Domain Names) 
  
 [Intentionally Omitted] 
  

 191 

 SCHEDULE 15 
 (Patent Cases) 
  
 [Intentionally Omitted] 
  

 192 

 SCHEDULE 16 
 (Intellectual Property Licences) 
  

	1.	SHARED RIGHTS 

  

	(A)	Subject to the provisions of sub-clauses 10(D) and 10(E) below, the Purchaser shall, with effect from Completion, procure the grant to the Vendor of a non-exclusive, perpetual,
worldwide, assignable, irrevocable, royalty-free licence (with the right to sub-license) in respect of any Company IPR (excluding all trade marks) and know-how owned by any of the Companies which has been used (but not exclusively used) in the
twelve months prior to Completion by a member of the Vendor’s Group or the Companies other than in connection with the Transferring Business to use, manufacture, research, develop and/or sell products outside the Defined Field and the field of
human and animal in vitro diagnostics, save that the Vendor shall have no right to grant sub-licences in respect of any patents or patent applications included within Company IPR except to members of the Vendor’s Group or for the purpose
of having products manufactured, researched and/or developed for it by third parties. 

  

	(B)	Subject to the provisions of sub-clauses (F) and (G) below, the Vendor shall, with effect from Completion, grant or procure the grant to the Purchaser of a non-exclusive, perpetual,
worldwide, assignable, irrevocable, royalty-free licence (with the right to sub-license) in respect of the Shared IPR to use, manufacture, research, develop and/or sell products in the Defined Field and in the fields of human and animal in
vitro and in vivo diagnostics only (save to the extent that the Shared IPR is licensed pursuant to the Antibody Patent Licence, in which case the terms of the Antibody Patent Licence shall apply), save that the Purchaser shall have no
right to grant sub-licences in respect of any patents or patent applications included within Shared IPR except to members of the Purchaser’s Group or for the purpose of having products manufactured, researched and/or developed for it by third
parties. 

  

	(C)	Neither party shall disclose (other than to permitted sub-licensees under obligations of confidentiality no less onerous than this sub-clause (C)) any know-how licensed to
such party pursuant to sub-clause (A) or, as the case may be, (B) to any third party except under an obligation of confidence, provided that this obligation shall not apply to know-how: 

  

	 	(i)	which was already available to the public before the date of this Agreement; 

  

	 	(ii)	which subsequently becomes available to the public through no fault of the receiving party; 

  

	 	(iii)	which is lawfully disclosed to the receiving party by a third party without obligation of confidence; or 

  

	 	(iv)	which the receiving party can prove was developed by that party wholly independently of the information received from the donor. 

  

	(D)	 The Vendor shall identify and provide the Purchaser with a list of all patents and patent applications (“Patents”), within eighteen months
from the date of this Agreement in respect of patent applications filed within (i) six months prior to the date of this 

  

 193 

	 	 
Agreement, or (ii) three months after the date of this Agreement, and within twelve months from the date of this Agreement in respect of all other Patents
(the “Identification Period”), which are Company IPR and which the Vendor claims are included within the licence granted pursuant to sub-clause (A), together with a brief description of the use of such Patents by the member
of the Vendor’s Group other than in connection with the Transferring Business. At the Vendor’s reasonable request, the Purchaser shall provide reasonable assistance to the Vendor in connection with such identification of Patents. If the
Purchaser disputes whether any Patent is included within that licence, the Parties agree to submit such dispute to a mutually acceptable, independent third party arbitrator for final binding arbitration and the Party whose assertion is not upheld in
relation to any Patent shall pay all the arbitration costs (including the other Party’s costs) in relation to the dispute in respect of that Patent. 

  

	(E)	After the Identification Period, the licence granted to the Vendor pursuant to sub-clause (A) shall terminate insofar only as it relates to Patents except for any Patent
which has been identified by the Vendor pursuant to Clause (D) and which the Vendor has agreed is included within that licence or which an arbitrator pursuant to sub-clause (D) has determined is included within that licence or which has been
submitted for resolution in accordance with sub-clause (H). 

  

	(F)	The Purchaser shall, within the Identification Period, identify and provide the Vendor with a list of all Patents owned by a member of the Vendor Group which the Purchaser claims
are included within the definition of Shared IPR together with a brief description of the use of such Patents by the Company or in the US Business. At the Purchaser’s reasonable request, the Vendor shall provide reasonable assistance to the
Purchaser in connection with such identification of Patents. If the Vendor disputes whether any Patent is included within the definition of Shared IPR the Parties agree to submit such dispute to a mutually acceptable, independent third party
arbitrator for final binding arbitration and the Party whose assertion is not upheld in relation to any Patent shall pay all the arbitration costs (including the other Party’s costs) in relation to the dispute in respect of that Patent.

  

	(G)	After the Identification Period, the licence granted to the Purchaser to use Shared IPR pursuant to sub-clause (B) shall terminate insofar only as it relates to Patents
except for any Patent which has been identified by the Purchaser pursuant to sub-clause (F) and which the Vendor has agreed is included within Shared IPR or which an arbitrator pursuant to sub-clause (F) has determined is included
within Shared IPR or which has been submitted for resolution in accordance with sub-clause (H). 

  

	(H)	If a dispute or difference arises in connection with this Schedule, the parties shall attempt to resolve such dispute or difference through the following procedure:

  

	 	(i)	at the written request of either party, the resolution of a dispute or difference shall be escalated for good faith consideration, and where possible, resolution by a senior patent
attorney of the Licensors’ Group and the Chief Scientific Officer of the Licensee; and 

  

	 	(ii)	 failing agreement by the persons in sub-clause (H)(i) above within 30 days of such written request such dispute or difference may be referred at the written
request of either party to the Head of Patents of the Licensors’ Group and the 

  

 194 

	 	 
Chief Executive Officer of the Licensee’s Group. If the dispute or difference is not resolved within 30 days of such request, either party may initiate
proceedings in accordance with sub-clause 1(D) or 1(F) as appropriate, 

  
 provided that nothing in this sub-clause (H) shall prevent or restrict either party’s right to seek injunctive relief for any actual or suspected
unauthorised use or other unlawful act in respect of its rights (and/or the rights of any member of its Group) in Intellectual Property or know-how. 
  

	2.	VITAMIN LICENCE AND ASSISTANCE 

  

	(A)	The Vendor hereby grants the Purchaser and the Purchaser’s Group a non-exclusive, royalty-free, perpetual, irrevocable, worldwide, assignable licence (including rights to grant
sub-licences) to use in the Defined Field and in the field of human and animal in vitro and in vivo diagnostics (i) any Intellectual Property or know-how owned by a member of the Vendor’s Group at the date of this Agreement
arising from the research on electrochemical detectors for the assessment of vitamins in food products and in blood carried out (a) at the Vendor’s Colworth laboratory by Robert Porter and/or (b) which is the subject of the IP assignment dated
18th December, 2001 between Unipath Limited and Unilever UK Central Resources Limited as disclosed to the Purchaser (the “Research Project”), and (ii) any patent or patent application whether existing now or after the date of this
Agreement, to the extent covering (a) any such know-how owned by a member of the Vendor’s Group as at the date of this Agreement and/or (b) any know-how received by the Unilever Group from Robert Porter pursuant to this paragraph (A), save that
the Purchaser shall have no right to grant sub-licences in respect of any patents or patent applications included within such licence except to members of the Purchaser’s Group or for the purpose of having products manufactured, researched
and/or developed for it by third parties. The Purchaser shall at the Vendor’s cost and request use reasonable endeavours to procure that, during the three months from Completion, Robert Porter, an employee of the Company, provides the Vendor or
a member of the Vendor’s Group with reasonable assistance in order for the Vendor or a member of the Vendor’s Group to prepare the documentation reasonably necessary for the filing of patent applications on the results of the Research
Project. The reasonable assistance to be provided by Robert Porter pursuant to this paragraph (A) shall extend only to matters within his actual knowledge and shall not include advising on the drafting of the relevant patent applications, but shall
include the provision of relevant scientific or research information within his actual knowledge for the relevant patent applications. The Vendor acknowledges and agrees that no member of the Purchaser’s Group or Robert Porter shall be liable
to any member of the Vendor’s Group in respect of any assistance given by Robert Porter in accordance with this paragraph (A). 

  

	(B)	The Vendor acknowledges and agrees on behalf of itself and every member of the Vendor’s Group that the Intellectual Property assigned to Unilever UK Central Resources Limited
(“Central Resources”) by Unipath Limited pursuant to (i) the assignment of affiniti solutions IPRs between Unipath Limited, Central Resources, Steven Howell and Simon Alaluf dated on or around the date of this Agreement; and (ii) the
assignment of electrochemical detectors IPRs between Central Resources and Unipath Limited dated 18th December, 2001, (in each case as disclosed to the Purchaser) shall be limited to such Intellectual Property and know-how as is owned by Unipath
Limited at the date of this Agreement. 

  

 195 

					
	 Signed by RICHARD HAZELL
	  	)	  	 
	 for and on behalf of
	  	)	  	R.C. Hazell
	UNILEVER U.K. HOLDINGS LIMITED	  	)	  	 
			
	 Signed by PAUL HEMPEL
	  	)	  	 
	 for and on behalf of
	  	)	  	Paul Hempel
	INVERNESS MEDICAL INNOVATIONS, INC.	  	)	  	 

  

 196Indenture dated May 27, 2004

Table of Contents

 Exhibit 4.1 
  

  
 LEINER MERGER CORPORATION 
 (to be assumed by LEINER HEALTH PRODUCTS INC.) 
 as Issuer, 
  
 the GUARANTORS named herein, 
 as Guarantors, 
  
 and 
  
 U.S. BANK NATIONAL ASSOCIATION, 
 as Trustee

  

  
 INDENTURE 
  

  
 Dated as of May 27, 2004 
  

  
 11% Senior Subordinated Notes due 2012 
  

  

Table of Contents

 CROSS-REFERENCE TABLE 
  

			
	 Trust Indenture Act

           Section

	  	 Indenture
 Section

	  
	 310(a)(1)
	  	7.10
	  (a)(2)
	  	7.10
	  (a)(3)
	  	N.A.
	  (a)(4)
	  	N.A.
	  (a)(5)
	  	7.08; 7.10
	  (b)
	  	7.08;7.10;12.02
	  (c)
	  	N.A.
	 311(a)
	  	7.11
	  (b)
	  	7.11
	  (c)
	  	N.A.
	 312(a)
	  	2.05
	  (b)
	  	12.03
	  (c)
	  	12.03
	 313(a)
	  	7.06
	  (b)(1)
	  	7.06
	  (b)(2)
	  	7.06
	  (c)
	  	7.06; 12.02
	  (d)
	  	7.06
	 314(a)
	  	4.06;4.18;12.02
	  (b)
	  	N.A.
	  (c)(1)
	  	7.02;12.04;12.05
	  (c)(2)
	  	7.02;12.04;12.05
	  (c)(3)
	  	N.A.
	  (d)
	  	N.A.
	  (e)
	  	12.05
	  (f)
	  	N.A.
	 315(a)
	  	7.01(b);7.02(a)
	  (b)
	  	7.05; 12.02
	  (c)
	  	7.01
	  (d)
	  	6.05; 7.01(c)
	  (e)
	  	6.11
	 316(a)(last sentence)
	  	2.09
	  (a)(1)(A)
	  	6.05
	  (a)(1)(B)
	  	6.04
	  (a)(2)
	  	9.02
	  (b)
	  	6.07
	  (c)
	  	9.05
	 317(a)(1)
	  	6.08
	  (a)(2)
	  	6.09
	  (b)
	  	2.04
	 318(a)
	  	12.01
	  (c)
	  	12.01

  

  
 N.A. means Not Applicable 
  

	Note:  	This Cross-Reference Table shall not, for any purpose, be deemed to be a part of this Indenture. 

  

Table of Contents

 
TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE ONE
	  	 
		
	 DEFINITIONS AND INCORPORATION BY REFERENCE
	  	 
			
	 SECTION 1.01.
	  	Definitions	  	1
			
	 SECTION 1.02.
	  	Other Definitions	  	32
			
	 SECTION 1.03.
	  	Incorporation by Reference of Trust Indenture Act	  	33
			
	 SECTION 1.04.
	  	Rules of Construction	  	33
		
	 ARTICLE TWO
	  	 
		
	 THE NOTES
	  	 
			
	 SECTION 2.01.
	  	Form and Dating	  	34
			
	 SECTION 2.02.
	  	Execution, Authentication and Denomination; Additional Notes; Exchange Notes	  	35
			
	 SECTION 2.03.
	  	Registrar and Paying Agent	  	36
			
	 SECTION 2.04.
	  	Paying Agent To Hold Money in Trust	  	37
			
	 SECTION 2.05.
	  	Holder Lists	  	37
			
	 SECTION 2.06.
	  	Transfer and Exchange	  	37
			
	 SECTION 2.07.
	  	Replacement Notes	  	38
			
	 SECTION 2.08.
	  	Outstanding Notes	  	38
			
	 SECTION 2.09.
	  	Treasury Notes	  	39
			
	 SECTION 2.10.
	  	Temporary Notes	  	39
			
	 SECTION 2.11.
	  	Cancellation	  	39
			
	 SECTION 2.12.
	  	Defaulted Interest	  	40
			
	 SECTION 2.13.
	  	CUSIP and ISIN Numbers	  	40
			
	 SECTION 2.14.
	  	Deposit of Moneys	  	40
			
	 SECTION 2.15.
	  	Book-Entry Provisions for Global Notes	  	40
			
	 SECTION 2.16.
	  	Special Transfer and Exchange Provisions	  	42
		
	 ARTICLE THREE
	  	 
		
	 REDEMPTION
	  	 
			
	 SECTION 3.01.
	  	Notices to Trustee	  	45
			
	 SECTION 3.02.
	  	Selection of Notes To Be Redeemed	  	46
			
	 SECTION 3.03.
	  	Notice of Redemption	  	46
			
	 SECTION 3.04.
	  	Effect of Notice of Redemption	  	47
			
	 SECTION 3.05.
	  	Deposit of Redemption Price	  	47
			
	 SECTION 3.06.
	  	Notes Redeemed in Part	  	48

  

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	 	  	 	  	Page

		
	 ARTICLE FOUR
	  	 
		
	 COVENANTS
	  	 
			
	 SECTION 4.01.
	  	Payment of Notes	  	48
			
	 SECTION 4.02.
	  	Maintenance of Office or Agency	  	48
			
	 SECTION 4.03.
	  	Corporate Existence	  	49
			
	 SECTION 4.04.
	  	Payment of Taxes	  	49
			
	 SECTION 4.05.
	  	Maintenance of Properties and Insurance	  	49
			
	 SECTION 4.06.
	  	Compliance Certificate; Notice of Default	  	50
			
	 SECTION 4.07.
	  	Compliance with Laws	  	50
			
	 SECTION 4.08.
	  	Waiver of Stay, Extension or Usury Laws	  	50
			
	 SECTION 4.09.
	  	Change of Control	  	51
			
	 SECTION 4.10.
	  	Limitations on Additional Indebtedness	  	52
			
	 SECTION 4.11.
	  	Limitations on Restricted Payments	  	55
			
	 SECTION 4.12.
	  	Limitations on Liens	  	58
			
	 SECTION 4.13.
	  	Limitations on Asset Sales	  	58
			
	 SECTION 4.14.
	  	Limitations on Transactions with Affiliates	  	62
			
	 SECTION 4.15.
	  	Limitations on Dividend and Other Restrictions Affecting Restricted Subsidiaries	  	64
			
	 SECTION 4.16.
	  	Additional Note Guarantees	  	65
			
	 SECTION 4.17.
	  	Limitations on Layering Indebtedness	  	66
			
	 SECTION 4.18.
	  	Reports to Holders	  	66
			
	 SECTION 4.19.
	  	Limitations on Designation of Unrestricted Subsidiaries	  	67
			
	 SECTION 4.20.
	  	Conduct of Business	  	68
			
	 SECTION 4.21.
	  	Limitation on Preferred Stock of Non-Guarantor Restricted Subsidiaries	  	69
		
	 ARTICLE FIVE
	  	 
		
	 SUCCESSOR CORPORATION
	  	 
			
	 SECTION 5.01.
	  	Mergers, Consolidations, Etc.	  	69
			
	 SECTION 5.02.
	  	Successor Corporation Substituted	  	71
		
	 ARTICLE SIX
	  	 
		
	 DEFAULT AND REMEDIES
	  	 
			
	 SECTION 6.01.
	  	Events of Default	  	71
			
	 SECTION 6.02.
	  	Acceleration	  	73
			
	 SECTION 6.03.
	  	Other Remedies	  	74
			
	 SECTION 6.04.
	  	Waiver of Past Defaults	  	74
			
	 SECTION 6.05.
	  	Control by Majority	  	74
			
	 SECTION 6.06.
	  	Limitation on Suits	  	75
			
	 SECTION 6.07.
	  	Rights of Holders To Receive Payment	  	75

  

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	 	  	 	  	Page

			
	 SECTION 6.08.
	  	Collection Suit by Trustee	  	75
			
	 SECTION 6.09.
	  	Trustee May File Proofs of Claim	  	75
			
	 SECTION 6.10.
	  	Priorities	  	76
			
	 SECTION 6.11.
	  	Undertaking for Costs	  	76
		
	 ARTICLE SEVEN
	  	 
		
	 TRUSTEE
	  	 
			
	 SECTION 7.01.
	  	Duties of Trustee	  	77
			
	 SECTION 7.02.
	  	Rights of Trustee	  	78
			
	 SECTION 7.03.
	  	Individual Rights of Trustee	  	79
			
	 SECTION 7.04.
	  	Trustee’s Disclaimer	  	79
			
	 SECTION 7.05.
	  	Notice of Default	  	80
			
	 SECTION 7.06.
	  	Reports by Trustee to Holders	  	80
			
	 SECTION 7.07.
	  	Compensation and Indemnity	  	80
			
	 SECTION 7.08.
	  	Replacement of Trustee	  	81
			
	 SECTION 7.09.
	  	Successor Trustee by Merger, Etc.	  	82
			
	 SECTION 7.10.
	  	Eligibility; Disqualification	  	82
			
	 SECTION 7.11.
	  	Preferential Collection of Claims Against the Issuer	  	83
		
	 ARTICLE EIGHT
	  	 
		
	 DISCHARGE OF INDENTURE; DEFEASANCE
	  	 
			
	 SECTION 8.01.
	  	Termination of the Issuer’s Obligations	  	83
			
	 SECTION 8.02.
	  	Legal Defeasance and Covenant Defeasance	  	84
			
	 SECTION 8.03.
	  	Conditions to Legal Defeasance or Covenant Defeasance	  	85
			
	 SECTION 8.04.
	  	Application of Trust Money	  	86
			
	 SECTION 8.05.
	  	Repayment to the Issuer	  	87
			
	 SECTION 8.06.
	  	Reinstatement	  	87
		
	 ARTICLE NINE
	  	 
		
	 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	  	 
			
	 SECTION 9.01.
	  	Without Consent of Holders	  	87
			
	 SECTION 9.02.
	  	With Consent of Holders	  	88
			
	 SECTION 9.03.
	  	Effect on Senior Debt	  	90
			
	 SECTION 9.04.
	  	Compliance with the Trust Indenture Act	  	90
			
	 SECTION 9.05.
	  	Revocation and Effect of Consents	  	90
			
	 SECTION 9.06.
	  	Notation on or Exchange of Notes	  	91
			
	 SECTION 9.07.
	  	Trustee To Sign Amendments, Etc.	  	91

  

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	 	  	 	  	Page

		
	 ARTICLE TEN
	  	 
		
	 SUBORDINATION OF NOTES
	  	 
			
	 SECTION 10.01.
	  	Notes Subordinated to Senior Debt	  	91
			
	 SECTION 10.02.
	  	Suspension of Payment When Senior Debt Is in Default	  	92
			
	 SECTION 10.03.
	  	Notes Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation or Reorganization of the Issuer	  	93
			
	 SECTION 10.04.
	  	Payments May Be Made on Notes	  	94
			
	 SECTION 10.05.
	  	Holders To Be Subrogated to Rights of Holders of Senior Debt	  	95
			
	 SECTION 10.06.
	  	Obligations of the Issuer Unconditional	  	95
			
	 SECTION 10.07.
	  	Notice to Trustee	  	95
			
	 SECTION 10.08.
	  	Reliance on Judicial Order or Certificate of Liquidating Agent	  	96
			
	 SECTION 10.09.
	  	Trustee’s Relation to Senior Debt	  	96
			
	 SECTION 10.10.
	  	Subordination Rights Not Impaired by Acts or Omissions of the Issuer or Holders of Senior Debt	  	97
			
	 SECTION 10.11.
	  	Holders Authorize Trustee To Effectuate Subordination of Notes	  	97
			
	 SECTION 10.12.
	  	This Article Ten Not To Prevent Events of Default	  	98
			
	 SECTION 10.13.
	  	Trustee’s Compensation Not Prejudiced	  	98
		
	 ARTICLE ELEVEN
	  	 
		
	 NOTE GUARANTEE
	  	 
			
	 SECTION 11.01.
	  	Unconditional Guarantee	  	98
			
	 SECTION 11.02.
	  	Subordination of Note Guarantee	  	99
			
	 SECTION 11.03.
	  	Limitation on Guarantor Liability	  	99
			
	 SECTION 11.04.
	  	Execution and Delivery of Note Guarantee	  	100
			
	 SECTION 11.05.
	  	Release of a Subsidiary Guarantor	  	100
			
	 SECTION 11.06.
	  	Waiver of Subrogation	  	101
			
	 SECTION 11.07.
	  	Immediate Payment	  	102
			
	 SECTION 11.08.
	  	No Set-Off	  	102
			
	 SECTION 11.09.
	  	Guarantee Obligations Absolute	  	102
			
	 SECTION 11.10.
	  	Note Guarantee Obligations Continuing	  	102
			
	 SECTION 11.11.
	  	Note Guarantee Obligations Not Reduced	  	102
			
	 SECTION 11.12.
	  	Note Guarantee Obligations Reinstated	  	102
			
	 SECTION 11.13.
	  	Note Guarantee Obligations Not Affected	  	103
			
	 SECTION 11.14.
	  	Waiver	  	104
			
	 SECTION 11.15.
	  	No Obligation to Take Action Against the Issuers	  	104
			
	 SECTION 11.16.
	  	Dealing with the Issuers and Others	  	104
			
	 SECTION 11.17.
	  	Default and Enforcement	  	105
			
	 SECTION 11.18.
	  	Amendment, Etc.	  	105
			
	 SECTION 11.19.
	  	Acknowledgment	  	105
			
	 SECTION 11.20.
	  	Costs and Expenses	  	105
			
	 SECTION 11.21.
	  	No Merger or Waiver; Cumulative Remedies	  	105
			
	 SECTION 11.22.
	  	Survival of Note Guarantee Obligations	  	106

  

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	 	  	 	  	Page

			
	 SECTION 11.23.
	  	Note Guarantee in Addition to Other Guarantee Obligations	  	106
			
	 SECTION 11.24.
	  	Severability	  	106
			
	 SECTION 11.25.
	  	Successors and Assigns	  	106
		
	 ARTICLE TWELVE
	  	 
		
	 MISCELLANEOUS
	  	 
			
	 SECTION 12.01.
	  	Trust Indenture Act Controls	  	107
			
	 SECTION 12.02.
	  	Notices	  	107
			
	 SECTION 12.03.
	  	Communications by Holders with Other Holders	  	108
			
	 SECTION 12.04.
	  	Certificate and Opinion as to Conditions Precedent	  	108
			
	 SECTION 12.05.
	  	Statements Required in Certificate or Opinion	  	108
			
	 SECTION 12.06.
	  	Rules by Paying Agent or Registrar	  	109
			
	 SECTION 12.07.
	  	Legal Holidays	  	109
			
	 SECTION 12.08.
	  	Governing Law	  	109
			
	 SECTION 12.09.
	  	No Adverse Interpretation of Other Agreements	  	109
			
	 SECTION 12.10.
	  	No Recourse Against Others	  	109
			
	 SECTION 12.11.
	  	Successors	  	109
			
	 SECTION 12.12.
	  	Duplicate Originals	  	109
			
	 SECTION 12.13.
	  	Severability	  	110
		
	 Signatures
	  	S-1

  

					
			
	Exhibit A	  	-	  	Form of Note
	Exhibit B	  	-	  	Form of Legends
	Exhibit C	  	-	  	Form of Certificate To Be Delivered in Connection with Transfers to Non-QIB Accredited Investors
	Exhibit D	  	-	  	Form of Certificate To Be Delivered in Connection with Transfers Pursuant to Regulation S
	Exhibit E	  	-	  	Form of Certificate To Be Delivered in Connection with Transfers of Temporary Regulation S Global Note
	Exhibit F	  	-	  	Form of Notation of Subsidiary Guarantee

  

	Note:  	This Table of Contents shall not, for any purpose, be deemed to be part of this Indenture. 

  

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 INDENTURE dated as of May 27, 2004 among Leiner Merger Corporation, a Delaware corporation (the
“Issuer”) and U.S. Bank National Association, a national banking association, as Trustee (the “Trustee”), and from and after the consummation of the Merger (as defined herein), each of the Guarantors named herein,
as Guarantors. 
  
 Effective as of the date hereof, the Issuer
will be merged with and into Leiner Health Products Inc., a Delaware corporation (the “Company”) pursuant to the Recapitalization (as defined herein), with the Company as the surviving corporation (the “Merger”).
Effective upon effectiveness of the Merger, the Company will assume the Issuer’s obligations under this Indenture and will cause its subsidiaries to become Guarantors to the extent required by this Indenture. 
  
 The Issuer has duly authorized the creation of an issue of 11% Senior
Subordinated Notes due 2012 and, to provide therefor, the Issuer has duly authorized the execution and delivery of this Indenture. All things necessary to make the Notes, when duly issued and executed by the Issuer and authenticated and delivered
hereunder, the valid and binding obligations of the Issuer and to make this Indenture a valid and binding agreement of the Issuer has been done. 
  
 For and in consideration of the premises and the purchase of the Notes by the Holders thereof, the parties hereto covenant and agree, for the equal and
proportionate benefit of all Holders, as follows: 
  
 ARTICLE ONE

  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION 1.01. Definitions. 
  
 Set forth below are certain defined terms used in this Indenture. 

 
 “144A Global Note” has the meaning given to such term in
Section 2.01. 
  
 “Acquired Indebtedness” means
(1) with respect to any Person that becomes a Restricted Subsidiary after the Issue Date, Indebtedness of such Person and its Subsidiaries existing at the time such Person becomes a Restricted Subsidiary that was not incurred in connection with, or
in contemplation of, such Person becoming a Restricted Subsidiary and (2) with respect to the Issuer or any Restricted Subsidiary, any Indebtedness of a Person (other than the Issuer or a Restricted Subsidiary) existing at the time such Person is
merged with or into the Issuer or a Restricted Subsidiary, or Indebtedness expressly assumed by the Issuer or any Restricted Subsidiary in connection with the acquisition of an asset or assets from another Person, which Indebtedness was not, in any
case, incurred by such other Person in connection with, or in contemplation of, such merger or acquisition. 
  
 “Additional Interest” has the meaning set forth in the Registration Rights Agreement. 
  

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 “Affiliate” of any Person means any other Person which directly or indirectly controls
or is controlled by, or is under direct or indirect common control with, the referent Person. For purposes of Section 4.14 only, Affiliates shall be deemed to include, with respect to any Person, any other Person (1) which beneficially owns or
holds, directly or indirectly, 10% or more of any class of the Voting Stock of the referent Person, (2) of which 10% or more of the Voting Stock is beneficially owned or held, directly or indirectly, by the referenced Person or (3) with respect to
an individual, any immediate family member of such Person. For purposes of this definition, “control” of a Person shall mean the power to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise. 
  
 “Agent” means any Registrar or Paying Agent. 
  
 “amend” means to amend, supplement, restate, amend and restate or otherwise modify, including successively, and “amendment” shall have a correlative meaning. 
  
 “Applicable Premium” means, with respect to any Note on any
applicable Redemption Date, the greater of: 
  
 (1) 1.0% of the then outstanding principal amount of the Notes; and 
  
 (2) the excess of: 
  
 (a) the present value at such Redemption Date of (i) the Redemption Price of the Note at June 1, 2008 (such Redemption Price being set forth in Section 5 of the Notes) plus (ii) all remaining required interest payments due on the Note
through June 1, 2008 (excluding accrued but unpaid interest), computed using a semi-annual discount rate equal to the Treasury Rate as of such Redemption Date plus 50 basis points; over 
  
 (b) the then outstanding principal amount of the Note. 
  
 Calculation of the Applicable Premium will be made by the Issuer or on behalf
of the Issuer by such Person as the Issuer shall designate; provided, however, that such calculation shall not be a duty or obligation of the Trustee. 
  
 “asset” means any asset or property. 
  
 “Asset Acquisition” means: 
  
 (1) an Investment by the Issuer or any Restricted Subsidiary of the Issuer in any other Person if, as a
result of such Investment, such Person shall become a Restricted Subsidiary of the Issuer, or shall be merged with or into the Issuer or any Restricted Subsidiary of the Issuer, or 
  

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 (2) the acquisition by the Issuer or any Restricted Subsidiary of the Issuer of all or
substantially all of the assets of any other Person or any division or line of business of any other Person. 
  
 “Asset Sale” means (i) any sale, issuance, conveyance, transfer, lease, assignment or other disposition by the Issuer or any Restricted
Subsidiary to any Person other than the Issuer or any Restricted Subsidiary (including by means of a Sale and Leaseback Transaction or a merger or consolidation) (collectively, for purposes of this definition, a “transfer”), in one
transaction or a series of related transactions, of any assets of the Issuer or any of its Restricted Subsidiaries other than in the ordinary course of business or (ii) the issuance of Equity Interests in any of the Issuer’s Restricted
Subsidiaries (other than director qualifying shares or shares required by applicable law to be held by a Person other than the Issuer or Restricted Subsidiary) to a Person other than the Issuer or a Restricted Subsidiary or the minority stockholders
of a Restricted Subsidiary on a pro rata basis. For purposes of this definition, the term “Asset Sale” shall not include: 
  
 (1) transfers of cash or Cash Equivalents; 
  
 (2) transfers between or among the Issuer, the Guarantors and Wholly-Owned Restricted Subsidiaries that are not Guarantors; 
  
 (3) transfers of assets (including Equity Interests) that
are governed by, and made in accordance with Section 5.01; 
  
 (4) Permitted Investments and Restricted Payments permitted under Section 4.11; 
  
 (5) the creation of or realization on any Lien permitted under this Indenture; 
  
 (6) transfers of damaged, worn-out or obsolete equipment or
assets that, in the Issuer’s reasonable judgment, are no longer used or useful in the business of the Issuer or its Restricted Subsidiaries; 
  
 (7) the sale of products, services or accounts receivable in the ordinary course of business; 
  
 (8) sales or grants of licenses or sublicenses to use the
patents, trade secrets, know-how and other intellectual property, and licenses, leases or subleases of other assets, of the Issuer or any Restricted Subsidiary to the extent not materially interfering with the business of Issuer and the Restricted
Subsidiaries; and 
  
 (9) any sale of Equity
Interests in, or Indebtedness or other securities of, an Unrestricted Subsidiary; and 
  
 (10) any transfer or series of related transfers that, but for this clause, would be Asset Sales, if after giving effect to such
transfers, the aggregate Fair Market Value of the 

  

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assets transferred in such transaction or any such series of related transactions does not exceed $1.0 million. 
  
 “Bankruptcy Law” means Title 11 of the United States Code,
as amended, or any similar federal or state law for the relief of debtors. 
  
 “Board of Directors” means, with respect to any Person, (i) in the case of any corporation, the board of directors of such Person, (ii) in the case of any limited liability company, the board of
managers of such Person, (iii) in the case of any partnership, the Board of Directors of the general partner of such Person and (iv) in any other case, the functional equivalent of the foregoing or, in each case, other than for purposes of the
definition of “Change of Control,” any duly authorized committee of such body. 
  
 “Business Day” means a day other than a Saturday, Sunday or other day on which banking institutions in New York are authorized or required by law to close. 
  
 “Capitalized Lease” means a lease required to be capitalized
for financial reporting purposes in accordance with GAAP. 
  
 “Capitalized Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under a Capitalized Lease, and the amount of such obligation shall be the capitalized amount thereof determined
in accordance with GAAP. 
  
 “Cash Equivalents”
means: 
  
 (1) marketable obligations issued or
directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof), maturing within 360
days of the date of acquisition thereof; 
  
 (2)
demand and time deposits and certificates of deposit or acceptances, maturing within 360 days of the date of acquisition thereof, of any financial institution that is a member of the Federal Reserve System having combined capital and surplus and
undivided profits of not less than $500 million; 
  
 (3) commercial paper maturing no more than 360 days from the date of creation thereof issued by a corporation that is not the Issuer or an Affiliate of the Issuer, and is organized under the laws of any State of the United States of America
or the District of Columbia and rated at least A-2 by S&P or at least P-2 by Moody’s; 
  
 (4) repurchase obligations with a term of not more than ten days for underlying securities of the types described in clause (1) above
entered into with any commercial bank meeting the specifications of clause (2) above; 
  
 (5) in the case of any Foreign Subsidiary, such local currencies held by it from time to time in the ordinary course of business;

  

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 (6) in the case of any Foreign Subsidiary, demand or time deposit accounts used in the
ordinary course of business with reputable commercial banks located in the jurisdiction of organization of such Foreign Subsidiary; and 
  
 (7) investments in money market or other mutual funds substantially all of whose assets comprise securities of the types described in
clauses (1) through (6) above. 
  
 “Change of
Control” means the occurrence of any of the following events: 
  
 (1) prior to a Public Equity Offering after the Issue Date, the Permitted Holders cease to own directly or indirectly, or to have the power directly or indirectly to vote or direct the voting of, Voting Stock
representing more than 50% of the voting power of the total outstanding Voting Stock of the Issuer; 
  
 (2) following a Public Equity Offering after the Issue Date, any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act, except that in no event shall the parties to the Stockholders’ Agreement be deemed a “group” solely by virtue of being parties to the Stockholders’ Agreement), other than one or more
Permitted Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause that person or group shall be deemed to have “beneficial ownership” of all
securities that any such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of Voting Stock representing more than 35% of the voting power of the total
outstanding Voting Stock of the Issuer; provided, however, that such event shall not be deemed to be a Change of Control so long as the Permitted Holders own Voting Stock representing in the aggregate a greater percentage of the total
voting power of the Voting Stock of the Issuer than such other person or group; 
  
 (3) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors
(together with any new directors whose election to such Board of Directors or whose nomination for election by the stockholders of the Issuer was approved by a vote of the majority of the directors of the Issuer then still in office who were either
directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors of the Issuer; or 
  
 (4) (a) all or substantially all of the assets of the Issuer
and the Restricted Subsidiaries are sold or otherwise transferred to any Person other than a Wholly-Owned Restricted Subsidiary or one or more Permitted Holders or (b) the Issuer consolidates or merges with or into another Person or any Person
consolidates or merges with or into the Issuer, in either case under this clause (4)(b), in one transaction or a series of related transactions in which immediately after the consummation thereof Persons beneficially owning (as defined in Rules
13d-3 and 13d-5 under the Exchange Act), directly or indirectly, Voting Stock representing in the aggregate a majority of the total voting power of the Voting Stock of the Issuer immediately prior to such consummation do not beneficially 

  

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own (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, Voting Stock representing a majority of the total voting power of
the Voting Stock of the Issuer or the surviving or transferee Person. 
  
 For
purposes of this definition, a Person shall not be deemed to have beneficial ownership of securities subject to a stock purchase agreement, merger agreement or similar agreement until the consummation of the transactions contemplated by such
agreement. 
  
 “Consolidated Amortization
Expense” for any period means the amortization expense of the Issuer and the Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Cash Flow” for any period means, without duplication, the sum of the amounts for such period
of 
  
 (1) Consolidated Net Income, plus

  
 (2) in each case only to the extent (and in
the same proportion) deducted in determining Consolidated Net Income and with respect to the portion of Consolidated Net Income attributable to any Restricted Subsidiary only if a corresponding amount would be permitted at the date of determination
to be distributed to the Issuer by such Restricted Subsidiary without prior approval (that has not been obtained), pursuant to the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to such Restricted Subsidiary or its stockholders, 
  
 (a) Consolidated Income Tax Expense, 
  
 (b) Consolidated Amortization Expense (but only to the extent not included in Consolidated Interest Expense), 
  
 (c) Consolidated Depreciation Expense, 
  
 (d) Consolidated Interest Expense, 
  
 (e) Consulting Fees paid or accrued during such period in an amount not to exceed $2.63 million in any fiscal year, and 
  
 (f) all other non-cash items reducing Consolidated Net
Income (excluding any non-cash charge that results in an accrual of a reserve for cash charges in any future period) for such period, 
  
 in each case determined on a consolidated basis in accordance with GAAP, minus 
  
 (3) the aggregate amount of all non-cash items, determined
on a consolidated basis, to the extent such items increased Consolidated Net Income for such period (other 

  

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than the reversal of a prior accrual or reserve for cash items previously excluded from Consolidated Cash Flow). 
  
 “Consolidated Depreciation Expense” for any period means the
depreciation expense of the Issuer and the Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Income Tax Expense” for any period means the provision for taxes of the Issuer and the Restricted Subsidiaries, determined
on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Interest Coverage Ratio” means the ratio of Consolidated Cash Flow during the most recent four consecutive full fiscal quarters for which financial statements are available (the “Four-Quarter
Period”) ending on or prior to the date of the transaction giving rise to the need to calculate the Consolidated Interest Coverage Ratio (the “Transaction Date”) to Consolidated Interest Expense for the Four-Quarter Period.
For purposes of this definition, Consolidated Cash Flow and Consolidated Interest Expense shall be calculated after giving effect on a pro forma basis for the period of such calculation to: 
  
 (1) the incurrence of any Indebtedness or the issuance of
any Preferred Stock of the Issuer or any Restricted Subsidiary (and the application of the proceeds thereof) and any repayment of other Indebtedness or redemption of other Preferred Stock (and the application of the proceeds therefrom) (other than
the incurrence or repayment of Indebtedness in the ordinary course of business for working capital purposes pursuant to any revolving credit arrangement) occurring during the Four-Quarter Period or at any time subsequent to the last day of the
Four-Quarter Period and on or prior to the Transaction Date, as if such incurrence, repayment, issuance or redemption, as the case may be (and the application of the proceeds thereof), occurred on the first day of the Four-Quarter Period;

  
 (2) any Asset Sale (without giving effect to
the $1.0 million threshold provided in the definition thereof) or Asset Acquisition (including, without limitation, any Asset Acquisition giving rise to the need to make such calculation as a result of the Issuer or any Restricted Subsidiary
(including any Person who becomes a Restricted Subsidiary as a result of such Asset Acquisition) incurring Acquired Indebtedness and also including any Consolidated Cash Flow (including any pro forma expense and cost reductions calculated on a basis
consistent with Regulation S-X under the Exchange Act) associated with any such Asset Acquisition) occurring during the Four-Quarter Period or at any time subsequent to the last day of the Four-Quarter Period and on or prior to the Transaction Date,
as if such Asset Sale or Asset Acquisition (including the incurrence of, or assumption or liability for, any such Indebtedness or Acquired Indebtedness) occurred on the first day of the Four-Quarter Period; and 
  
 (3) for any Four-Quarter Period that includes any period of
time prior to the consummation of the offering, pro forma effect shall be given for such period to the Transactions and the other adjustments that were added to pro forma EBITDA to calculate 

  

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Adjusted pro forma EBITDA calculated under GAAP as set forth in the Offering Memorandum, all as calculated in good faith by a responsible financial or
accounting officer of the Issuer, as if they had occurred on the first day of such Four-Quarter Period. 
  
 In calculating Consolidated Interest Expense for purposes of determining the denominator (but not the numerator) of this Consolidated Interest Coverage Ratio: 
  
 (1) interest on outstanding Indebtedness determined on a
fluctuating basis as of the Transaction Date and which will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on this Indebtedness in effect on the Transaction Date;

  
 (2) if interest on any Indebtedness actually
incurred on the Transaction Date may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on the Transaction Date will be
deemed to have been in effect during the Four-Quarter Period; and 
  
 (3) notwithstanding clause (1) or (2) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to Hedging Obligations, shall be deemed to accrue
at the rate per annum resulting after giving effect to the operation of these agreements. 
  
 “Consolidated Interest Expense” for any period means the sum, without duplication, of the total interest expense of the Issuer and the Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP and including without duplication, 
  
 (1) imputed interest on Capitalized Lease Obligations, 
  
 (2) commissions, discounts and other fees and charges owed with respect to letters of credit securing financial obligations, bankers’
acceptance financing and receivables financings, 
  
 (3) the net costs associated with Hedging Obligations, 
  
 (4) amortization of debt issuance costs, debt discount or premium and other financing fees and expenses (excluding amortization of or write-off of debt issuance costs with respect to the Transactions), 
  
 (5) the interest portion of any deferred payment
obligations, 
  
 (6) all other non-cash interest
expense, 
  
 (7) capitalized interest,

  
 (8) the product of (a) all dividend payments
on any series of Disqualified Equity Interests of the Issuer or any Preferred Stock of any Restricted Subsidiary (other than 

  

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any such Disqualified Equity Interests or any Preferred Stock held by the Issuer or a Wholly-Owned Restricted Subsidiary or to the extent paid in Qualified
Equity Interests), multiplied by (b) a fraction, the numerator of which is one and the denominator of which is one minus the then current effective combined federal, state and local statutory tax rate of the Issuer and the Restricted
Subsidiaries, expressed as a decimal, and 
  
 (10) all interest on any Indebtedness described in clause (7) or (8) of the definition of Indebtedness. 
  
 Consolidated Interest Expense shall be calculated excluding unrealized gains and losses with respect to Hedging Obligations. 

 
 “Consolidated Net Income” for any period means the net
income (or loss) of the Issuer and the Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP and prior to preferred stock dividends but after giving effect to dividends on Disqualified Equity Interests
paid pursuant to clause (6) of the second paragraph of Section 4.11; provided that there shall be excluded from such net income (to the extent otherwise included therein), without duplication: 
  
 (1) the net income of any Person (other than a Restricted
Subsidiary) in which any Person other than the Issuer and the Restricted Subsidiaries has an ownership interest, except to the extent of cash amounts that have actually been received by the Issuer or any of its Restricted Subsidiaries during such
period from such Person; 
  
 (2) except to the
extent includible in the consolidated net income of the Issuer pursuant to the foregoing clause (1), the net income (or loss) of any Person that accrued prior to the date that (a) such Person becomes a Restricted Subsidiary or is merged into or
consolidated with the Issuer or any Restricted Subsidiary or (b) the assets of such Person are acquired by the Issuer or any Restricted Subsidiary; 
  
 (3) the net income of any Restricted Subsidiary during such period to the extent that the declaration or payment of dividends or similar
distributions by such Restricted Subsidiary of that income is not permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary during
such period (except to the extent of the amount of dividends or distributions that have been paid to the Issuer or one or more Restricted Subsidiaries not subject to any such restrictions during the relevant period); 
  
 (4) for the purposes of calculating the Restricted Payments
Basket only, in the case of a successor to the Issuer by consolidation, merger or transfer of its assets, any income (or loss) of the successor prior to such merger, consolidation or transfer of assets; 
  
 (5) other than for purposes of calculating the Restricted
Payments Basket, any gain (or loss), together with any related provisions for taxes on any such gain (or the tax effect of any such loss), realized during such period by the Issuer or any Restricted Subsidiary upon (a) the acquisition of any
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of the Issuer or any Restricted Subsidiary or (b) any Asset Sale (without giving effect to the $1.0 million threshold provided in the definition thereof) by
the Issuer or any Restricted Subsidiary; 
  
 (6)
gains and losses due solely to fluctuations in currency values and the related tax effects according to GAAP; 
  
 (7) unrealized gains and losses with respect to Hedging Obligations; 
  
 (8) the cumulative effect of any change in accounting principles; and 
  
 (9) any non-cash goodwill or other asset impairment charges
incurred subsequent to the date of this Indenture, including charges resulting from the application of Statement of Financial Accounting Standards 142; 
  
 (10) the net loss of any Person other than a Restricted Subsidiary; 
  
 (11) non-cash compensation charges, including any such charges resulting from stock options, restricted
stock grants or other equity incentive programs; 
  
 (12) any non-recurring costs and expenses incurred in connection with the Transactions; 
  
 (13) any extraordinary or nonrecurring gain (or extraordinary or nonrecurring loss), together with any related provision for taxes on any
such extraordinary or nonrecurring gain (or the tax effect of any such extraordinary or nonrecurring loss), realized by the Issuer or any Restricted Subsidiary during such period. 
  
 In addition, any return of capital with respect to an Investment that increased the Restricted Payments Basket pursuant to
clause (3)(d) of the first paragraph of Section 4.11 or decreased the amount of Investments outstanding pursuant to clause (12) of the definition of “Permitted Investments” shall be excluded from Consolidated Net Income for purposes of
calculating the Restricted Payments Basket. 
  
 “Consolidated Tangible Assets” means, at any date of determination, the total amount of assets after deducting therefrom the value (net of any applicable reserves) of all goodwill, trade names, trademarks, patents and other
like intangible assets, all as set forth on the consolidated balance sheet of us and our consolidated subsidiaries for our most recently completed fiscal quarter, prepared in accordance with GAAP. 
  
 “Consulting Agreement” means the Consulting Agreement to be
dated as of the Issue Date by and among the Issuer, Leiner Health Products, LLC, North Castle Partners, L.L.C. and GGC Administration, LLC, without giving effect to any amendment thereto or waiver thereof unless such amendment or waiver is not
materially adverse to Holders of Notes. 
  

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 “Consulting Fees” means payments to North Castle Partners, L.L.C. or GGC Administration,
LLC or their respective assignees pursuant to the Consulting Agreement. 
  
 “Corporate Trust Office” means the corporate trust office of the Trustee located at 60 Livingston Avenue, St. Paul, MN 55107-2292, Attention: Corporate Trust Department, or such other office, designated by the Trustee by
written notice to the Issuer, at which at any particular time its corporate trust business shall be administered. 
  
 “Coverage Ratio Exception” has the meaning set forth in the proviso in the first paragraph of Section 4.10.” 
  
 “Credit Agreement” means the Credit Agreement dated the
Issue Date by and among the Issuer, as Borrower, UBS AG, Stamford Branch, as administrative agent, UBS Securities LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers, Morgan Stanley Senior Funding, Inc. as syndication agent, and the
other lenders named therein, including any notes, guarantees, collateral and security documents, instruments and agreements executed in connection therewith (including Hedging Obligations related to the Indebtedness incurred thereunder), and in each
case as amended or refinanced from time to time. 
  
 “Credit Facilities” means one or more (i) debt facilities (which may be outstanding at the same time and including, without limitation, the Credit Agreement) providing for revolving credit loans, term loans or letters of
credit, or (ii) indentures relating to debt securities sold to institutional investors and, in each case, as such agreements may be amended, refinanced or otherwise restructured, in whole or in part from time to time (including increasing the amount
of available borrowings thereunder or adding Subsidiaries of the Issuer as additional borrowers or guarantors thereunder) with respect to all or any portion of the Indebtedness under such agreement or agreements or any successor or replacement
agreement or agreements and whether by the same or any other agent, lender or group of lenders. 
  
 “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 
  
 “Default” means (1) any Event of Default or (2) any event,
act or condition that, after notice or the passage of time or both, would be an Event of Default. 
  
 “Depository” means The Depository Trust Company, New York, New York, or a successor thereto registered under the Exchange Act or other
applicable statute or regulation. 
  
 “Designated Noncash
Consideration” means the Fair Market Value of noncash consideration received by the Issuer or one of its Restricted Subsidiaries in connection with an Asset Sale that is so designated as Designated Noncash Consideration pursuant to an
Officers’ Certificate setting forth the basis of such valuation, less the amount of cash or Cash Equivalents received in connection with a subsequent sale of such Designated Noncash Consideration. 
  
 “Designated Senior Debt” means (1) Senior Debt and Guarantor
Senior Debt under or in respect of the Credit Facilities and (2) any other Indebtedness constituting Senior 

  

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Debt or Guarantor Senior Debt which, at the time of determination, has an aggregate principal amount of at least $25.0 million and is specifically designated
in the instrument evidencing such Senior Debt as “Designated Senior Debt.” 
  
 “Designation” has the meaning given to this term in Section 4.19. 
  
 “Designation Amount” has the meaning given to this term in Section 4.19. 
  
 “Disqualified Equity Interests” of any Person means any class of Equity Interests of such Person that, by
its terms, or by the terms of any related agreement or of any security into which it is convertible, puttable or exchangeable, is, or upon the happening of any event or the passage of time would be, required to be redeemed by such Person, whether or
not at the option of the holder thereof, or matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, in whole or in part, on or prior to the date which is 91 days after the final maturity date of the Notes;
provided, however, that any class of Equity Interests of such Person that, by its terms, authorizes such Person to satisfy in full its obligations with respect to the payment of dividends or upon maturity, redemption (pursuant to a
sinking fund or otherwise) or repurchase thereof or otherwise by the delivery of Equity Interests that are not Disqualified Equity Interests, and that is not convertible, puttable or exchangeable for Disqualified Equity Interests or Indebtedness,
will not be deemed to be Disqualified Equity Interests so long as such Person satisfies its obligations with respect thereto solely by the delivery of Equity Interests that are not Disqualified Equity Interests; provided, further,
however, that any Equity Interests that would not constitute Disqualified Equity Interests but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests is convertible, exchangeable or
exercisable) the right to require the Issuer to redeem such Equity Interests upon the occurrence of a change in control or an asset sale occurring prior to the 91st day after the final maturity date of the Notes shall not constitute Disqualified
Equity Interests if the change in control or asset sale provisions applicable to such Equity Interests are no more favorable to such holders than the provisions set forth in Section 4.09 and Section 4.13, respectively, and such Equity Interests
specifically provide that the Issuer will not redeem any such Equity Interests pursuant to such provisions prior to the Issuer’s purchase of the Notes as required pursuant to the provisions set forth in Section 4.09 and Section 4.13,
respectively. 
  
 “Equity Interests” of any
Person means (1) any and all shares or other equity interests (including common stock, preferred stock, limited liability company interests and partnership interests) in such Person and (2) all rights to purchase, warrants or options (whether or not
currently exercisable), participations or other equivalents of or interests in (however designated) such shares or other interests in such Person. 
  
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 
  
 “Exchange Notes” has the meaning set forth in the Registration Rights Agreement. 
  

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 “Exchange Offer” means the offer that may be made by the Issuer pursuant to the
Registration Rights Agreement to exchange Notes bearing the Private Placement Legend for the Exchange Notes. 
  
 “Exchange Offer Registration Statement” has the meaning given to such term in the Registration Rights Agreement. 
  
 “Excluded Contribution” means the net cash proceeds or
marketable securities received by the Issuer and its Restricted Subsidiaries from: 
  
 (1) contributions to its equity capital; and 
  
 (2) the sale (other than to a Subsidiary or to any management equity plan or stock option plan or any other management or employee benefit
plan or agreement of the Issuer or any Subsidiary) of Qualified Equity Interests, 
  
 in each case designated within 60 days of receipt of such net cash proceeds as Excluded Contributions pursuant to an Officers’ Certificate, the cash proceeds of which are excluded from clause 3(b) of Section 4.11. 
  
 “Fair Market Value” means, with respect to any asset, the
price (after taking into account any liabilities relating to such assets) that would be negotiated in an arm’s-length transaction for cash between a willing seller and a willing and able buyer, neither of which is under any compulsion to
complete the transaction, with respect to any amounts in excess of $5.0 million, as such price is determined in good faith by the Board of Directors of the Issuer or a duly authorized committee thereof, as evidenced by a resolution of such Board or
committee. 
  
 “Foreign Subsidiary” means any
Restricted Subsidiary of the Issuer which is not organized under the laws of (x) the United States or any state thereof or (y) the District of Columbia. 
  
 “Four-Quarter Period” has the meaning given to such term in the definition of “Consolidated Interest Coverage Ratio.”

  
 “GAAP” means generally accepted accounting
principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of the accounting profession of the United States, as in effect on the Issue Date. 
  

“guarantee” means a direct or indirect guarantee by any Person of any Indebtedness of any other Person and includes any obligation,
direct or indirect, contingent or otherwise, of such Person: (1) to purchase or pay (or advance or supply funds for the purchase or payment of) Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services (unless such purchase arrangements are on arm’s-length terms and are entered into in the ordinary course of 

  

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business), to take-or-pay, or to maintain financial statement conditions or otherwise); or (2) entered into for purposes of assuring in any other manner the
obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); “guarantee,” when used as a verb, and “guaranteed” have correlative meanings.

  
 “Guarantor Senior Debt” means, with respect
to any Guarantor, the principal of, premium, if any, and interest (including any interest accruing subsequent to the filing of a petition of bankruptcy at the rate provided for in the documentation with respect thereto, whether or not such interest
is an allowed claim under applicable law) on any Indebtedness of such Guarantor, whether outstanding on the Issue Date or thereafter created, incurred or assumed, unless, in the case of any particular Indebtedness, the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly provides that such Indebtedness shall not be senior in right of payment to the Notes. 
  

Without limiting the generality of the foregoing, “Guarantor Senior Debt” shall also include the principal of, premium, if any, interest
(including any interest accruing subsequent to the filing of a petition of bankruptcy at the rate provided for in the documentation with respect thereto, whether or not such interest is an allowed claim under applicable law) on, and all other
amounts owing in respect of: 
  
 (1) all monetary
obligations of every nature of such Guarantor under, or with respect to, the Credit Facilities, including, without limitation, obligations to pay principal and interest, reimbursement obligations under letters of credit, fees, expenses and
indemnities (and guarantees thereof); and 
  
 (2)
all Hedging Obligations in respect of the Credit Facilities; 
  
 in each case
whether outstanding on the Issue Date or thereafter incurred. 
  
 Notwithstanding the foregoing, “Guarantor Senior Debt” shall not include: 
  
 (1) any Indebtedness of such Guarantor to the Issuer or any of its Subsidiaries; 
  
 (2) Indebtedness to, or guaranteed on behalf of, any
director, officer or employee of the Issuer or any of its other Subsidiaries (including, without limitation, amounts owed for compensation); 
  
 (3) obligations to trade creditors and other amounts incurred (but not under the Credit Facilities) in connection with obtaining goods,
materials or services; 
  
 (4) Indebtedness
represented by Disqualified Equity Interests; 
  
 (5) any liability for taxes owed or owing by such Guarantor; 
  
 (6) that portion of any Indebtedness incurred in violation of Section 4.10 (but, as to any such obligation, no such violation shall be deemed to exist for purposes of this 

  

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clause (6) if the holder(s) of such obligation or their representative shall have received an officers’ certificate of such Guarantor to the effect that
the incurrence of such Indebtedness does not (or, in the case of revolving credit indebtedness, that the incurrence of the entire committed amount thereof at the date on which the initial borrowing thereunder is made would not) violate such
provisions of this Indenture); 
  
 (7)
Indebtedness which, when incurred and without respect to any election under Section 1111(b) of Title 11, United States Code, is without recourse to such Guarantor; and 
  
 (8) any Indebtedness which is, by its express terms, subordinated in right of payment to any other
Indebtedness of such Guarantor. 
  
 “Guarantors”
means each of the Company’s Restricted Subsidiaries on the Issue Date (other than any Foreign Subsidiary), and each other Person that is required to, or at the election of the Company does, become a guarantor by the terms of this Indenture
after the Issue Date, in each case until such Person is released from its Note Guarantee in accordance with the terms of this Indenture. 
  
 “Hedging Obligations” of any Person means the obligations of such Person under swap, cap, collar, forward purchase or similar agreements
or arrangements dealing with interest rates, currency exchange rates or commodity prices, either generally or under specific contingencies. 
  
 “Holder” means any registered holder, from time to time, of the Notes. 
  
 “Holdings” means LHP Holding Corp., a Delaware corporation, and its successors and assigns. 
  
 “incur” means, with respect to any Indebtedness or
Obligation, incur, create, issue, assume, guarantee or otherwise become directly or, indirectly liable, contingently or otherwise, with respect to such Indebtedness or Obligation; provided that (1) the Indebtedness of a Person existing at the
time such Person became a Restricted Subsidiary shall be deemed to have been incurred by such Restricted Subsidiary and (2) neither the accrual of interest nor the accretion of original issue discount or the accretion or accumulation of dividends on
any Equity Interests shall be deemed to be an incurrence of Indebtedness. 
  
 “Indebtedness” of any Person at any date means, without duplication: 
  
 (1) all liabilities, contingent or otherwise, of such Person for borrowed money (whether or not the recourse of the lender is to the whole
of the assets of such Person or only to a portion thereof); 
  
 (2) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; 
  

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 (3) all reimbursement obligations of such Person in respect of letters of credit, letters
of guaranty, bankers’ acceptances and similar credit transactions; 
  
 (4) all obligations of such Person to pay the deferred and unpaid purchase price of property or services, except trade payables and accrued expenses incurred by such Person in the ordinary course of business in
connection with obtaining goods, materials or services; 
  
 (5) the maximum fixed redemption or repurchase price of all Disqualified Equity Interests of such Person; 
  
 (6) all Capitalized Lease Obligations of such Person; 
  
 (7) all Indebtedness of others secured by a Lien on any asset of such Person, whether or not such
Indebtedness is assumed by such Person; 
  
 (8)
all Indebtedness of others guaranteed by such Person to the extent of such guarantee; provided that Indebtedness of the Issuer or its Subsidiaries that is guaranteed by the Issuer or the Issuer’s Subsidiaries shall only be counted once
in the calculation of the amount of Indebtedness of the Issuer and its Subsidiaries on a consolidated basis; 
  
 (9) to the extent not otherwise included in this definition, all net amounts owing under any Hedging Obligations with respect to
Indebtedness of such Person; and 
  
 (10) all
obligations of such Person under conditional sale or other title retention agreements relating to assets purchased by such Person. 
  
 The amount of any Indebtedness which is incurred at a discount to the principal amount at maturity thereof as of any date shall be deemed to have been
incurred at the accreted value thereof as of such date. The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations as described above, the maximum liability of such Person for
any such contingent obligations at such date and, in the case of clause (7), the lesser of (a) the Fair Market Value of any asset subject to a Lien securing the Indebtedness of others on the date that the Lien attaches and (b) the amount of the
Indebtedness secured. For purposes of clause (5), the “maximum fixed redemption or repurchase price” of any Disqualified Equity Interests that do not have a fixed redemption or repurchase price shall be calculated in accordance with the
terms of such Disqualified Equity Interests as if such Disqualified Equity Interests were redeemed or repurchased on any date on which an amount of Indebtedness outstanding shall be required to be determined pursuant to this Indenture. 

 
 “Indenture” means this Indenture, as amended or
supplemented from time to time in accordance with the terms hereof. 
  
 “Independent Financial Advisor” means an accounting, appraisal or investment banking firm of nationally recognized standing that is, in the reasonable judgment of the Issuer’s 

  

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Board of Directors, qualified to perform the task for which it has been engaged and disinterested and independent with respect to the Issuer and its
Affiliates. 
  
 “Initial Global Notes” has the
meaning given to such term in Section 2.01. 
  
 “Initial
Notes” has the meaning given to such term in Section 2.01. 
  
 “Initial Purchasers” means UBS Securities LLC, Credit Suisse First Boston LLC and Morgan Stanley & Co. Incorporated. 
  
 “Institutional Accredited Investor” or “IAI” means an “accredited investor” with the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act. 
  
 “interest” means, with respect to the Notes, interest and Additional Interest, if any, on the Notes. 
  
 “Interest Payment Date” means the Stated Maturity of an installment of interest on the Notes. 
  
 “Investments” of any Person means: 
  
 (1) all direct or indirect investments by such Person in any
other Person in the form of loans, advances or capital contributions or other credit extensions constituting Indebtedness of such other Person, and any guarantee of Indebtedness of any other Person (for purposes of clarification, and not in
limitation, payments made in respect of capitalized research and development costs shall not be deemed Investments); 
  
 (2) all purchases (or other acquisitions for consideration) by such Person of Indebtedness, Equity Interests or other securities of any
other Person (other than any such purchase that constitutes a Restricted Payment of the type described in clause (2) of the definition thereof); 
  
 (3) all other items that would be classified as investments on a balance sheet (excluding the footnotes thereto) of such Person prepared
in accordance with GAAP (including, if required by GAAP, purchases of assets outside the ordinary course of business); and 
  
 (4) the Designation of any Subsidiary as an Unrestricted Subsidiary. 
  
 Except as otherwise expressly specified in this definition, the amount of any Investment (other than an Investment made in
cash) shall be the Fair Market Value thereof on the date such Investment is made. The amount of Investment pursuant to clause (4) shall be the Designation Amount determined in accordance with Section 4.19. If the Issuer or any Restricted Subsidiary
sells or otherwise disposes of any Equity Interests of any Restricted Subsidiary, or any Restricted Subsidiary issues any Equity Interests, in either case, such that, after giving effect to any such sale or disposition, such Person is no longer a
Subsidiary, the Issuer shall be deemed 

  

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to have made an Investment on the date of any such sale or other disposition equal to the Fair Market Value of the Equity Interests of and all other
Investments in such Restricted Subsidiary retained. Notwithstanding the foregoing, purchases or redemptions of Equity Interests of the Issuer shall be deemed not to be Investments. 
  
 “Issue Date” means May 27, 2004, the date on which the Notes are originally issued. 
  
 “Lien” means, with respect to any asset, any mortgage, deed
of trust, lien (statutory or other), pledge, lease, easement, restriction, covenant, charge, security interest or other encumbrance of any kind or nature in respect of such asset, whether or not filed, recorded or otherwise perfected under
applicable law, including any conditional sale or other title retention agreement. 
  
 “Maturity Date” means June 1, 2012. 
  
 “Moody’s” means Moody’s Investors Service, Inc. and its successors. 
  
 “Net Available Proceeds” means, with respect to any Asset Sale, the proceeds thereof in the form of cash or Cash Equivalents, net of:

  
 (1) brokerage commissions and other fees and
expenses (including fees, discounts and expenses of legal counsel, accountants and investment banks, consultants and placement agents) of such Asset Sale; 
  
 (2) provisions for taxes payable as a result of such Asset Sale (after taking into account any available tax credits or deductions and any
tax sharing arrangements); 
  
 (3) amounts
required to be paid to any Person (other than the Issuer or any Restricted Subsidiary and other than under a Credit Facility) owning a beneficial interest in the assets subject to the Asset Sale or having a Lien thereon; 
  
 (4) payments of unassumed liabilities (not constituting
Indebtedness) relating to the assets sold at the time of, or within 30 days after the date of, such Asset Sale; and 
  
 (5) appropriate amounts to be provided by the Issuer or any Restricted Subsidiary, as the case may be, as a reserve required in accordance
with GAAP against any adjustment in the sale price of such asset or assets or liabilities associated with such Asset Sale and retained by the Issuer or any Restricted Subsidiary, as the case may be, after such Asset Sale, including pensions and
other postemployment benefit liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale, all as reflected in an Officers’ Certificate delivered to the Trustee;
provided, however, that any amounts remaining after adjustments, revaluations or liquidations of such reserves shall constitute Net Available Proceeds. 
  

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 “Non-Recourse Debt” means Indebtedness of an Unrestricted Subsidiary: 
  
 (1) as to which neither the Issuer nor any Restricted
Subsidiary (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise, or (c) constitutes the lender; and

  
 (2) no default with respect to which
(including any rights that the holders thereof may have to take enforcement action against an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of any other Indebtedness (other than the Credit Agreement or Notes) of
the Issuer or any Restricted Subsidiary to declare a default on the other Indebtedness or cause the payment thereof to be accelerated or payable prior to its Stated Maturity. 
  
 “Non-U.S. Person” has the meaning assigned to such term in Regulation S. 
  
 “Note Guarantee” means the guarantee by each Guarantor of
the Issuer’s payment obligations under this Indenture and the Notes, executed pursuant to this Indenture. 
  
 “Notes” means, collectively, the Issuer’s 11% Senior Subordinated Notes due 2012 issued in accordance with Section 2.02 (whether
issued on the Issue Date, issued as Additional Notes, issued as Exchange Notes or Private Exchange Notes, or otherwise issued after the Issue Date) treated as a single class of securities under this Indenture, as amended or supplemented from time to
time in accordance with the terms of this Indenture. 
  
 “Obligation” means any principal, interest, penalties, fees, indemnification, reimbursements, costs, expenses, damages and other liabilities payable under the documentation governing any Indebtedness. 
  
 “Offering” means the offering of the Notes by the Issuer
pursuant to the Offering Memorandum in connection with the funding of the Recapitalization. 
  
 “Offering Memorandum” means the offering memorandum of the Issuer relating to the Notes dated May 24, 2004. 
  
 “Officer” means any of the following of the Issuer: the Chairman of the Board of Directors, the Chief Executive Officer, the Chief
Financial Officer, the President, any Vice President, the Treasurer or the Secretary. 
  
 “Officers’ Certificate” means a certificate signed by two Officers. 
  
 “Pari Passu Indebtedness” means any Indebtedness of the Issuer or any Guarantor that ranks pari passu in right of payment
with the Notes or the Note Guarantees, as applicable. 
  
 “Permanent Regulation S Global Note” has the meaning given to such term in Section 2.01. 
  

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 “Permitted Business” means the businesses engaged in by the Issuer and its Subsidiaries
on the Issue Date as described in this offering memorandum and businesses that are reasonably related thereto or reasonable extensions thereof. 
  
 “Permitted Holders” means (i) Golden Gate Private Equity, Inc., (ii) North Castle Partners, L.L.C. and (iii) any Related Party of a
Person referred to in clauses (i) and (ii). 
  
 “Permitted
Investment” means: 
  
 (1) Investments
by the Issuer or any Restricted Subsidiary of the Issuer in any Person that is or will become immediately after such Investment a Guarantor or a Wholly Owned Restricted Subsidiary of the Issuer or that will merge or consolidate into the Issuer or a
Guarantor or a Wholly Owned Restricted Subsidiary of the Issuer; 
  
 (2) Investments in the Issuer by any Restricted Subsidiary of the Issuer or Investments in any Restricted Subsidiary of the Issuer by another Restricted Subsidiary of the Issuer; provided that any Indebtedness
evidencing such Investment and held by a Restricted Subsidiary that is not a Guarantor is unsecured and subordinated, pursuant to a written agreement, to the Issuer’s obligations under the Notes and this Indenture or, if applicable, to such
Guarantors’ obligations under its Guarantee; 
  
 (3) loans and advances to directors, employees and officers of the Issuer and the Restricted Subsidiaries for bona fide business purposes and to purchase Equity Interests of the Issuer not in excess of $2.0 million at any one time
outstanding; 
  
 (4) Hedging Obligations incurred
pursuant to clause (4) of the second paragraph of Section 4.10; 
  
 (5) cash and Cash Equivalents; 
  
 (6) receivables owing to the Issuer or any Restricted Subsidiary if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms; provided,
however, that such trade terms may include such concessionary trade terms as the Issuer or any such Restricted Subsidiary deems reasonable under the circumstances; 
  
 (7) Investments in securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency, reorganization, workout or recapitalization of such trade creditors or customers or in connection with settlement or compromise of obligations; 
  
 (8) Investments made by the Issuer or any Restricted
Subsidiary as a result of consideration received in connection with an Asset Sale made in compliance with Section 4.13; 
  
 (9) lease, utility and other similar deposits in the ordinary course of business; 
  

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 (10) Investments made by the Issuer or a Restricted Subsidiary for consideration
consisting only of Qualified Equity Interests of the Issuer; 
  
 (11) stock, obligations or securities received in settlement of debts created in the ordinary course of business and owing to the Issuer or any Restricted Subsidiary or in satisfaction of judgments; 
  
 (12) Investments existing on the date of this Indenture
(including Investments of the Company and its Subsidiaries); 
  
 (13) Investments resulting from the acquisition of a Person that at the time of such acquisition held instruments constituting Investments that were not acquired in contemplation of the acquisition of such Person;

  
 (14) guarantees otherwise permitted to be
incurred under this Indenture; and 
  
 (15) other
Investments in an aggregate amount not to exceed $15.0 million at any one time outstanding (with each Investment being valued as of the date made and without regard to subsequent changes in value); provided, however, that if an Investment
pursuant to this clause (15) is made in any Person that is not a Guarantor or a Wholly-Owned Restricted Subsidiary of the Issuer at the date of the making of the Investment and such Person becomes a Guarantor or a Wholly-Owned Restricted Subsidiary
after such date, such Investment shall thereafter be deemed to have been made pursuant to clause (1), above, and shall cease to have been made pursuant to this clause (15). 
  
 The amount of Investments outstanding at any time pursuant to clause (15) above shall be deemed to be reduced: 

 
 (a) upon the disposition or repayment of or return on any
Investment made pursuant to clause (15) above, by an amount equal to the return of capital with respect to such Investment to the Issuer or any Restricted Subsidiary (to the extent not included in the computation of Consolidated Net Income); and

  
 (b) upon a Redesignation of an Unrestricted
Subsidiary as a Restricted Subsidiary, by an amount equal to the lesser of (x) the Fair Market Value of the Issuer’s proportionate interest in such Subsidiary immediately following such Redesignation, and (y) the aggregate amount of Investments
in such Subsidiary that increased (and did not previously decrease) the amount of Investments outstanding pursuant to clause (15) above. 
  
 “Permitted Junior Securities” means: 
  
 (1) Equity Interests in the Issuer or any Guarantor; or 
  
 (2) debt securities issued pursuant to a confirmed plan of reorganization that are subordinated in right of
payment to (a) all Senior Debt and Guarantor Senior Debt and (b) any debt securities issued in exchange for Senior Debt to substantially the same 

  

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extent as, or to a greater extent than, the Notes and the Note Guarantees are subordinated to Senior Debt and Guarantor Senior Debt under this Indenture.

  
 “Permitted Liens” means the following types
of Liens: 
  
 (1) Liens for taxes, assessments or
governmental charges or claims either (a) not delinquent or (b) contested in good faith by appropriate proceedings and as to which the Issuer or the Restricted Subsidiaries shall have set aside on its books such reserves, if any, as may be required
pursuant to GAAP; 
  
 (2) statutory Liens of
landlords and Liens of carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and other Liens imposed by law incurred in the ordinary course of business for sums not more than 90 days delinquent or being contested in good faith, if
such reserve or other appropriate provision, if any, as shall be required by GAAP shall have been made in respect thereof; 
  
 (3) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment
insurance and other types of social security or insurance, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed money); 
  
 (4) Liens upon specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created for the account of such Person to
facilitate the purchase, shipment or storage of such inventory or other goods; 
  
 (5) judgment Liens not giving rise to a Default so long as such Liens are adequately bonded and any appropriate legal proceedings which
may have been duly initiated for the review of such judgment have not been finally terminated or the period within which the proceedings may be initiated has not expired; 
  
 (6) easements, rights-of-way, zoning restrictions and other similar charges, restrictions or encumbrances in
respect of real property or immaterial imperfections of title which do not, in the aggregate, impair in any material respect the ordinary conduct of the business of the Issuer and the Restricted Subsidiaries taken as a whole; 
  
 (7) Liens securing reimbursement obligations with respect to
commercial letters of credit which encumber documents and other assets relating to such letters of credit and products and proceeds thereof; 
  
 (8) Liens encumbering deposits made to secure obligations arising from statutory, regulatory, contractual or warranty requirements of the
Issuer or any Restricted Subsidiary, including rights of offset and setoff; 
  

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 (9) bankers’ Liens, rights of setoff and other similar Liens existing solely with
respect to cash and Cash Equivalents on deposit in one or more of accounts maintained by the Issuer or any Restricted Subsidiary, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are
maintained, securing amounts owing to such bank with respect to cash management and operating account arrangements, including those involving pooled accounts and netting arrangements; provided that in no case shall any such Liens secure
(either directly or indirectly) the repayment of any Indebtedness; 
  
 (10) leases, subleases, licenses or sublicenses granted to others that do not materially interfere with the ordinary course of business of the Issuer or any Restricted Subsidiary; 
  
 (11) Liens arising from filing Uniform Commercial Code
financing statements regarding leases; 
  
 (12)
Liens securing all of the Notes and Liens securing any Note Guarantee; 
  
 (13) Liens securing Senior Debt or Guarantor Senior Debt; 
  
 (14) Liens existing on the Issue Date (including Liens of the Company and its Subsidiaries); 
  
 (15) Liens in favor of the Issuer or a Guarantor;

  
 (16) Liens securing Indebtedness under the
Credit Facilities; 
  
 (17) Liens securing
Purchase Money Indebtedness; provided that such Liens shall not extend to any asset other than the specified asset being financed and additions and improvements thereon; 
  
 (18) Liens securing Acquired Indebtedness permitted to be incurred under this Indenture; provided
that the Liens do not extend to assets not subject to such Lien at the time of acquisition (other than improvements thereon) and are no more favorable to the lienholders than those securing such Acquired Indebtedness prior to the incurrence of such
Acquired Indebtedness by the Issuer or a Restricted Subsidiary; 
  
 (19) Liens on assets (including Equity Interests) of a Person existing at the time such Person is acquired or merged with or into or consolidated with the Issuer or any such Restricted Subsidiary (and not created in
anticipation or contemplation thereof); 
  
 (20)
Liens on assets of Foreign Subsidiaries securing Indebtedness of Foreign Subsidiaries; 
  

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 (21) Liens to secure Refinancing Indebtedness permitted to be incurred under this
Indenture; provided that such Liens do not extend to any additional assets (other than improvements thereon and replacements thereof); 
  
 (22) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with
the importation of goods; 
  
 (23) Liens incurred
in the ordinary course of business of the Issuer or any Restricted Subsidiary of the Issuer with respect to obligations that do not exceed $2.0 million at any one time outstanding; 
  
 (24) Liens securing Hedging Obligations permitted by clause (4) of the definition of “Permitted
Indebtedness,” that relate to Indebtedness otherwise permitted to be incurred pursuant to this Indenture; 
  
 (25) judgment liens in respect of judgments that do not constitute an Event of Default so long as such Liens are adequately bonded and any
appropriate legal proceedings that may have been duly initiated for the review of such judgment have not been finally terminated or the period within which such proceedings may be initiated has not expired; and 
  
 (26) Liens permitted under the Credit Agreement as in effect
on the Issue Date. 
  
 “Person” means any
individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association, joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof or
other entity of any kind. 
  
 “Plan of
Liquidation” with respect to any Person, means a plan that provides for, contemplates or the effectuation of which is preceded or accompanied by (whether or not substantially contemporaneously, in phases or otherwise): (1) the sale,
lease, conveyance or other disposition of all or substantially all of the assets of such Person otherwise than as an entirety or substantially as an entirety; and (2) the distribution of all or substantially all of the proceeds of such sale, lease,
conveyance or other disposition of all or substantially all of the remaining assets of such Person to holders of Equity Interests of such Person. 
  
 “Preferred Stock” means, with respect to any Person, any and all preferred or preference stock or other equity interests (however
designated) of such Person whether now outstanding or issued after the Issue Date. 
  
 “principal” means, with respect to the Notes, the principal of, and premium, if any, on the Notes. 
  
 “Private Exchange” has the meaning given to it in the Registration Rights Agreement. 
  

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 “Private Exchange Notes” has the meaning given to it in the Registration Rights
Agreement. 
  
 “Private Placement Legend” means
the legends initially set forth on the Notes in the form set forth in Exhibit B. 
  
 “Public Equity Offering” means an underwritten public offering of Qualified Equity Interests of the Issuer generating gross proceeds of at least $50.0 million in the aggregate since the Issue Date,
pursuant to an effective registration statement filed under the Securities Act. 
  
 “Purchase Money Indebtedness” means Indebtedness, including Capitalized Lease Obligations, of the Issuer or any Restricted Subsidiary incurred for the purpose of financing all or any part of the
purchase price of property, plant or equipment used in the business of the Issuer or any Restricted Subsidiary or the cost of design, installation, construction or improvement thereof; (whether through the direct acquisition of such assets or the
acquisition of Capital Stock of any Person owning such assets); provided, however, that (1) the amount of such Indebtedness shall not exceed such purchase price or cost and (2) such Indebtedness shall be incurred within 120 days after such
acquisition or lease of such asset by the Issuer or such Restricted Subsidiary or such installation, construction or improvement. 
  
 “Qualified Equity Interests” means Equity Interests of the Issuer other than Disqualified Equity Interests; provided that such
Equity Interests shall not be deemed Qualified Equity Interests to the extent sold or owed to a Subsidiary of the Issuer or financed, directly or indirectly, using funds (1) borrowed from the Issuer or any Subsidiary of the Issuer until and to the
extent such borrowing is repaid or (2) contributed, extended, guaranteed or advanced by the Issuer or any Subsidiary of the Issuer (including, without limitation, in respect of any employee stock ownership or benefit plan). 
  
 “Qualified Equity Offering” means the issuance and sale of
Qualified Equity Interests of the Issuer. 
  
 “Qualified
Institutional Buyer” or “QIB” shall have the meaning specified in Rule 144A under the Securities Act. 
  
 “Recapitalization” means the recapitalization of the Company pursuant to the Recapitalization Agreement and Plan of Merger, dated as of
April 15, 2004, among the Company and the Issuer. 
  
 “Record Date” means the applicable Record Date specified in the Notes; provided that if any such date is not a Business Day, the Record Date shall be the first day immediately succeeding such specified day that is a
Business Day. 
  
 “redeem” means to redeem,
repurchase, purchase, defease, retire, discharge or otherwise acquire or retire for value; and “redemption” shall have a correlative meaning; provided that this definition shall not apply for purposes of Section 5 or Section 6 of
the Notes or Article Three. 
  

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 “Redemption Date,” when used with respect to any Note to be redeemed, means the date
fixed for such redemption pursuant to this Indenture and the Notes. 
  
 “Redemption Price,” when used with respect to any Note to be redeemed, means the price fixed for such redemption, payable in immediately available funds, pursuant to this Indenture and the Notes. 
  
 “Redesignation” has the meaning given to such term in
Section 4.19. 
  
 “refinance” means to refinance,
repay, prepay, replace, renew or refund. 
  
 “Refinancing
Indebtedness” means Indebtedness of the Issuer or a Restricted Subsidiary issued in exchange for, or the proceeds of which are used, within 90 days of such issuance or receipt of such proceeds, to redeem or refinance in whole or in part,
any Indebtedness of the Issuer or any Restricted Subsidiary (the “Refinanced Indebtedness”); provided that: 
  
 (1) the principal amount (or accreted value, in the case of Indebtedness issued at a discount) of the Refinancing Indebtedness does not
exceed the principal amount (or accreted value, as the case may be) of the Refinanced Indebtedness plus the amount of accrued and unpaid interest on the Refinanced Indebtedness, any premium paid to the holders of the Refinanced Indebtedness and
reasonable expenses incurred in connection with the incurrence of the Refinancing Indebtedness; 
  
 (2) the obligor of Refinancing Indebtedness does not include any Person (other than the Issuer or any Guarantor) that is not an obligor of
the Refinanced Indebtedness; 
  
 (3) if the
Refinanced Indebtedness was subordinated in right of payment to the Notes or the Note Guarantees, as the case may be, then such Refinancing Indebtedness, by its terms, is subordinate in right of payment to the Notes or the Note Guarantees, as the
case may be, at least to the same extent as the Refinanced Indebtedness, and if the Refinanced Indebtedness was pari passu with the Notes or the Note Guarantees, as the case may be, then the Refinancing Indebtedness ranks pari passu
with, or is subordinated in right of payment to, the Notes or the Note Guarantees, as the case may be; 
  
 (4) the Refinancing Indebtedness has a final Stated Maturity either (a) no earlier than the Refinanced Indebtedness being repaid or
amended or (b) after the maturity date of the Notes; and 
  
 (5) the portion, if any, of the Refinancing Indebtedness that is scheduled to mature on or prior to the maturity date of the Notes has a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is
incurred that is equal to or greater than the Weighted Average Life to Maturity of the portion of the Refinanced Indebtedness being repaid that is scheduled to mature on or prior to the maturity date of the Notes. 
  

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 “Registration Rights Agreement” means (i) the Registration Rights Agreement dated as of
the Issue Date among the Issuer, the Initial Purchasers and, pursuant to a joinder agreement, the Guarantors and (ii) any other registration rights agreement entered into in connection with an issuance of Additional Notes in a private offering after
the Issue Date. 
  
 “Regulation S” means
Regulation S under the Securities Act. 
  
 “Related
Party” means (i) any investment fund controlled by, or under common control with, such Person, and any officer, director or employee of such Person or any entity controlled by, or under common control with such Person, (ii) any spouse or
lineal descendant (including by adoption and stepchildren) of the officers, directors and employees referred to in clause (a)(i) above, and (iii) any trust, corporation or partnership or other entity, of which 80% in interest is held by
beneficiaries, stockholders, partners or owners who are one or more of the persons described in clause (a)(i) or (ii) above. 
  
 “Representative” means any agent or representative in respect of any Designated Senior Debt; provided that if, and for so long as,
any Designated Senior Debt lacks such representative, then the Representative for such Designated Senior Debt shall at all times constitute the holders of a majority in outstanding principal amount of such Designated Senior Debt. 
  
 “Responsible Officer” means, when used with respect to the
Trustee, any officer in the Corporate Trust Office of the Trustee to whom any corporate trust matter is referred because of such officer’s knowledge of and familiarity with the particular subject and shall also mean any officer who shall have
direct responsibility for the administration of this Indenture. 
  
 “Restricted Investment” means any Investment other than a Permitted Investment. 
  
 “Restricted Payment” means any of the following: 
  
 (1) the declaration or payment of any dividend or any other distribution on Equity Interests of the Issuer
or any Restricted Subsidiary or any payment made to the direct or indirect holders (in their capacities as such) of Equity Interests of the Issuer or any Restricted Subsidiary, including, without limitation, any payment in connection with any merger
or consolidation involving the Issuer but excluding (a) dividends or distributions payable solely in Qualified Equity Interests or through accretion or accumulation of such dividends on such Equity Interests and (b) in the case of Restricted
Subsidiaries, dividends or distributions payable to the Issuer or to a Restricted Subsidiary and pro rata dividends or distributions payable to minority stockholders of any Restricted Subsidiary; 
  
 (2) the redemption of any Equity Interests of the Issuer,
including, without limitation, any payment in connection with any merger or consolidation involving the Issuer but excluding any such Equity Interests held by the Issuer or any Restricted Subsidiary; 
  
 (3) any Restricted Investment; or 
  

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 (4) any payment or redemption prior to the scheduled maturity or prior to any scheduled
repayment of principal or sinking fund payment, as the case may be, in respect of Subordinated Indebtedness (other than any Subordinated Indebtedness owed to and held by the Issuer or any Restricted Subsidiary). 
  
 “Restricted Payments Basket” has the meaning
given to such term in the first paragraph of Section 4.11. 
  
 “Restricted Security” means a Note that constitutes a “Restricted Security” within the meaning of Rule 144(a)(3) under the Securities Act; provided, however, that the Trustee shall be
entitled to request and conclusively rely on an Opinion of Counsel with respect to whether any Note constitutes a Restricted Security. 
  
 “Restricted Subsidiary” means any Subsidiary of the Issuer other than an Unrestricted Subsidiary. 
  
 “Rule 144A” means Rule 144A under the
Securities Act. 
  
 “S&P” means
Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc., and its successors. 
  
 “Sale and Leaseback Transactions” means with respect to any Person an arrangement with any bank, insurance company or other
lender or investor or to which such lender or investor is a party, providing for the leasing by such Person of any asset of such Person which has been or is being sold or transferred by such Person to such lender or investor or to any Person to whom
funds have been or are to be advanced by such lender or investor on the security of such asset. 
  
 “SEC” means the U.S. Securities and Exchange Commission. 
  
 “Secretary’s Certificate” means a certificate signed by the Secretary of the Issuer.

  
 “Securities Act” means the U.S.
Securities Act of 1933, as amended. 
  
 “Senior
Debt” means the principal of, premium, if any, and interest (including any interest accruing subsequent to the filing of a petition of bankruptcy at the rate provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable law) on any Indebtedness of the Issuer, whether outstanding on the Issue Date or thereafter created, incurred or assumed, unless, in the case of any particular Indebtedness, the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly provides that such Indebtedness shall not be senior in right of payment to the Notes. 
  

Without limiting the generality of the foregoing, “Senior Debt” shall include the principal of, premium, if any, interest (including any
interest accruing subsequent to the filing of a petition of bankruptcy at the rate provided for in the documentation with respect thereto, 

  

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whether or not such interest is an allowed claim under applicable law) on, and all other amounts owing in respect of: 
  
 (1) all monetary obligations of every nature under, or with
respect to, the Credit Facilities, including, without limitation, obligations to pay principal and interest, reimbursement obligations under letters of credit, fees, expenses and indemnities (and guarantees thereof); and 
  
 (2) all Hedging Obligations in respect of the Credit
Facilities; 
  
 in each case whether outstanding
on the Issue Date or thereafter incurred. 
  
 Notwithstanding the
foregoing, “Senior Debt” shall not include: 
  
 (1) any Indebtedness of the Issuer to a direct or indirect parent company of the Issuer or any of its Subsidiaries; 
  
 (2) Indebtedness to, or guaranteed on behalf of, any director, officer or employee of the Issuer or any of its Subsidiaries (including,
without limitation, amounts owed for compensation); 
  
 (3) obligations to trade creditors and other amounts incurred (but not under the Credit Facilities) in connection with obtaining goods, materials or services; 
  
 (4) Indebtedness represented by Disqualified Equity Interests; 
  
 (5) any liability for taxes owed or owing by the Issuer;

  
 (6) that portion of any Indebtedness incurred
in violation of Section 4.10 (but, as to any such obligation, no such violation shall be deemed to exist for purposes of this clause (6) if the holder(s) of such obligation or their representative shall have received an Officers’ Certificate of
the Issuer to the effect that the incurrence of such Indebtedness does not (or, in the case of revolving credit indebtedness, that the incurrence of the entire committed amount thereof at the date on which the initial borrowing thereunder is made
would not) violate such provisions of this Indenture); 
  
 (7) Indebtedness which, when incurred and without respect to any election under Section 1111(b) of Title 11, United States Code, is without recourse to the Issuer; and 
  
 (8) any Indebtedness which is, by its express terms, subordinated in right of payment to any other
Indebtedness of the Issuer. 
  
 “Significant
Subsidiary” means (1) any Restricted Subsidiary that would be a “significant subsidiary” as defined in Regulation S-X promulgated pursuant to the Securities Act as such Regulation is in effect on the Issue Date and (2) any
Restricted Subsidiary that, when aggregated with all other Restricted Subsidiaries that are not otherwise Significant Subsidiaries and 

  

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as to which any event described in clause (7) or (8) under Section 6.01 has occurred and is continuing, or which are being released from their Guarantees (in
the case of clause (9) of Section 9.02(b), would constitute a Significant Subsidiary under clause (1) of this definition. 
  
 “Stockholders’ Agreement” means the stockholders’ agreement dated on or about the Issue Date among Holdings and its
stockholders. 
  
 “Stated Maturity” means, with
respect to any installment of interest or principal on any Indebtedness, the date on which such payment of interest or principal is scheduled to be paid in the documentation governing such Indebtedness, and shall not include any contingent
obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 
  
 “Subordinated Indebtedness” means Indebtedness of the Issuer or any Restricted Subsidiary that is expressly subordinated in right of
payment to the Notes or the Note Guarantees, respectively. 
  
 “Subsidiary” means, with respect to any Person: 
  
 (1) any corporation, limited liability company, association or other business entity of which more than 50% of the total voting power of the Equity Interests entitled (without regard to the occurrence of any
contingency) to vote in the election of the Board of Directors thereof are at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and 
  
 (2) any partnership (a) the sole general partner or the
managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are such Person or of one or more Subsidiaries of such Person (or any combination thereof). 
  
 Unless otherwise specified, “Subsidiary” refers to a Subsidiary of the Issuer.

  
 “Temporary Regulation S Global Note” has the
meaning given to such term in Section 2.01. 
  
 “Transactions” has the meaning set forth in the Offering Memorandum. 
  
 “Treasury Rate” means, as of the applicable Redemption Date, the yield to maturity as of such Redemption Date of United States Treasury securities with a constant maturity (as compiled and published
in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least three business days prior to such Redemption Date (or, if such Statistical Release is no longer published, any publicly available source of
similar market data)) most nearly equal to the period from such Redemption Date to June 1, 2008; provided, however, that if the period from such Redemption Date to June 1, 2008 is less than one 

  

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year, the weekly average yield on actually traded United States treasury securities adjusted to a constant maturity of one year will be used. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939,
as amended. 
  
 “Trustee” means the party named
as such in this Indenture until a successor replaces it in accordance with the provisions of this Indenture and thereafter means such successor. 
  
 “Unrestricted Subsidiary” means (1) any Subsidiary that at the time of determination shall be designated an Unrestricted Subsidiary by
the Board of Directors of the Issuer in accordance with Section 4.19 and (2) any Subsidiary of an Unrestricted Subsidiary. 
  
 “U.S. Government Obligations” means direct non-callable obligations of, or obligations guaranteed by, the United States of America for
the payment of which guarantee or obligations the full faith and credit of the United States is pledged. 
  
 “U.S. Legal Tender” means such coin or currency of the United States of America that at the time of payment shall be legal
tender for the payment of public and private debts. 
  
 “Voting Stock” with respect to any Person, means securities of any class of Equity Interests of such Person entitling the holders thereof (whether at all times or only so long as no senior class of stock or other relevant
equity interest has voting power by reason of any contingency) to vote in the election of members of the Board of Directors of such Person. 
  
 “Weighted Average Life to Maturity” when applied to any Indebtedness at any date, means the number of years obtained by dividing (1) the
sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal, including payment at final maturity, in respect thereof by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment by (2) the then outstanding principal amount of such Indebtedness. 
  
 “Wholly-Owned Restricted Subsidiary” means a Restricted Subsidiary of which 100% of the Equity Interests
(except for directors’ qualifying shares or certain minority interests owned by other Persons solely due to local law requirements that there be more than one stockholder, but which interest is not in excess of what is required for such
purpose) are owned directly by the Issuer or through one or more Wholly-Owned Restricted Subsidiaries. 
  

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 SECTION 1.02. Other Definitions. 
  

			
	 Term

	  	Defined in Section

	 “Additional Notes”
	  	2.02
	 “Affiliate Transaction”
	  	4.14
	 “Authentication Order”
	  	2.02
	 “Change of Control Offer”
	  	4.09
	 “Change of Control Payment Date”
	  	4.09
	 “Change of Control Purchase Price”
	  	4.09
	 “Covenant Defeasance”
	  	8.02
	 “Coverage Ratio Exception”
	  	4.10
	 “Designation”
	  	4.19
	 “Designation Amount”
	  	4.19
	 “Event of Default”
	  	6.01
	 “Excess Proceeds”
	  	4.13
	 “Four-Quarter Period”
	  	1.01
	 “Global Note”
	  	2.01
	 “Guarantee Obligations”
	  	11.01
	 “IAI Global Note”
	  	2.01
	 “Legal Defeasance”
	  	8.02
	 “Net Proceeds Deficiency”
	  	4.13
	 “Net Proceeds Offer”
	  	4.13
	 “Net Proceeds Payment Date”
	  	4.13
	 “Non-Payment Default”
	  	10.02
	 “Offered Price”
	  	4.13
	 “Pari Passu Indebtedness Price”
	  	4.13
	 “Participants”
	  	2.15
	 “Paying Agent”
	  	2.03
	 “Payment Amount”
	  	4.13
	 “Payment Blockage Notice”
	  	10.02
	 “Payment Blockage Period”
	  	10.02
	 “Payment Default”
	  	10.02
	 “Permitted Indebtedness”
	  	4.10
	 “Physical Notes”
	  	2.01
	 “Redesignation”
	  	4.19
	 “Registrar”
	  	2.03
	 “Regulation S Global Note”
	  	2.01
	 “Restricted Payments Basket”
	  	4.11
	 “Successor”
	  	5.01
	 “Transaction Date”
	  	1.01

  

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 SECTION 1.03. Incorporation by Reference of Trust Indenture Act. 
  
 Whenever this Indenture refers to a provision of the Trust Indenture Act,
such provision is incorporated by reference in, and made a part of, this Indenture. The following Trust Indenture Act terms used in this Indenture have the following meanings: 
  
 “indenture securities” means the Notes. 
  
 “indenture security holder” means a Holder. 
  
 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional
trustee” means the Trustee. 
  
 “obligor” on the indenture securities means the Issuer, any Guarantor or any other obligor on the Notes. 
  
 All other Trust Indenture Act terms used in this Indenture that are defined by the Trust Indenture Act, defined by Trust Indenture Act reference to
another statute or defined by SEC rule and not otherwise defined herein have the meanings assigned to them therein. 
  
 SECTION 1.04. Rules of Construction. 
  
 Unless the context otherwise requires: 
  
 (1) a term has the meaning assigned to it; 
  
 (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 
  
 (3) “or” is not exclusive; 
  
 (4) words in the singular include the plural, and words in
the plural include the singular; 
  
 (5)
provisions apply to successive events and transactions; 
  
 (6) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; and 
  
 (7) the words “including,” “includes”
and similar words shall be deemed to be followed by “without limitation.” 
  

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 ARTICLE TWO 
  
 THE NOTES 
  
 SECTION 2.01. Form and Dating. 
  
 The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. The Issuer
shall approve the form of the Notes and any notation, legend or endorsement on them. Each Note shall be dated the date of its issuance and show the date of its authentication. Each Note shall have an executed Note Guarantee from each of the
Guarantors existing on the Issue Date endorsed thereon substantially in the form of Exhibit F. 
  
 The terms and provisions contained in the Notes and the Note Guarantees shall constitute, and are hereby expressly made, a part of this Indenture and, to
the extent applicable, the Issuer, the Guarantors and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 
  
 Notes offered and sold in reliance on Rule 144A shall be issued initially in the form of a single permanent global Note in
registered form, substantially in the form set forth in Exhibit A (the “144A Global Note”), deposited with the Trustee, as custodian for the Depository, duly executed by the Issuer (and having an executed Note Guarantee from
each of the Guarantors endorsed thereon) and authenticated by the Trustee as hereinafter provided and shall bear the legends set forth in Exhibit B. 
  
 Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued initially in the form of a single temporary global Note in
registered form, substantially in the form of Exhibit A (the “Temporary Regulation S Global Note”), deposited with the Trustee, as custodian for the Depository, duly executed by the Issuer (and having an executed Note
Guarantee from each of the Guarantors endorsed thereon) and authenticated by the Trustee as hereinafter provided and shall bear the legends set forth in Exhibit B. Reasonably promptly following the date that is 40 days after the later of the
commencement of the offering of the Notes in reliance on Regulation S and the Issue Date, upon receipt by the Trustee and the Issuer of a duly executed certificate certifying that the Holder of the beneficial interest in the Temporary Regulation S
Global Note is a Non-U.S. Person, substantially in the form of Exhibit E from the Depository, a single permanent global Note in registered form substantially in the form of Exhibit A (the “Permanent Regulation S Global
Note,” and together with the Temporary Regulation S Global Note, the “Regulation S Global Note”) duly executed by the Issuer (and having an executed Note Guarantee from each of the Guarantors endorsed thereon) and
authenticated by the Trustee as hereinafter provided shall be deposited with the Trustee, as custodian for the Depository, and the Registrar shall reflect on its books and records the cancellation of the Temporary Regulation S Global Note and the
issuance of the Permanent Regulation S Global Note. 
  

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 The initial offer and resale of the Notes shall not be to an Institutional Accredited Investor. The Notes
resold to Institutional Accredited Investors in connection with the first transfer made pursuant to Section 2.16(a) shall be issued initially in the form of a single permanent Global Note in registered form, substantially in the form set forth in
Exhibit A (the “IAI Global Note,” and, together with the 144A Global Note and the Regulation S Global Note, the “Initial Global Notes”), deposited with the Trustee, as custodian for the Depository, duly
executed by the Issuer (and having an executed Note Guarantee from each of the Guarantors endorsed thereon) and authenticated by the Trustee as hereinafter provided and shall bear the legend set forth in Exhibit B. 
  
 Notes issued after the Issue Date shall be issued initially in the form of
one or more global Notes in registered form, substantially in the form set forth in Exhibit A, deposited with the Trustee, as custodian for the Depository, duly executed by the Issuer (and having an executed Note Guarantee from each of the
Guarantors endorsed thereon) and authenticated by the Trustee as hereinafter provided and shall bear any legends required by applicable law (together with the Initial Global Notes, the “Global Notes”) or as Physical Notes.

  
 The aggregate principal amount of the Global Notes may from
time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depository, as hereinafter provided. Notes issued in exchange for interests in a Global Note pursuant to Section 2.16 may be issued in the
form of permanent certificated Notes in registered form in substantially the form set forth in Exhibit A and bearing the applicable legends, if any, (the “Physical Notes”). 
  
 SECTION 2.02. Execution, Authentication and Denomination; Additional Notes; Exchange
Notes. 
  
 One Officer of the Issuer (who shall have been duly
authorized by all requisite corporate actions) shall sign the Notes for such Issuer by manual or facsimile signature. One Officer of a Guarantor (who shall have been duly authorized by all requisite corporate actions) shall sign the Note Guarantee
for such Guarantor by manual or facsimile signature. 
  
 If an
Officer whose signature is on a Note or Note Guarantee, as the case may be, was an Officer at the time of such execution but no longer holds that office at the time the Trustee authenticates the Note, the Note shall nevertheless be valid.

  
 A Note (and the Note Guarantees in respect thereof) shall not
be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Note. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture. 
  
 The Trustee shall authenticate (i) on the Issue Date, Notes for original
issue in the aggregate principal amount not to exceed $150,000,000 (the “Initial Notes”), (ii) additional Notes (the “Additional Notes”) having identical terms and conditions to the Initial Notes, except for issue
date, issue price and first interest payment date, in an unlimited amount (so long as not otherwise prohibited by the terms of this Indenture, including, without limitation, Section 4.10) 

  

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and (iii) Exchange Notes or Private Exchange Notes (x) in exchange for a like principal amount of Initial Notes or (y) in exchange for a like principal
amount of Additional Notes in each case upon a written order of the Company in the form of a certificate of an Officer of the Company (an “Authentication Order”). Each such Authentication Order shall specify the amount of Notes to
be authenticated and the date on which the Notes are to be authenticated, whether the Notes are to be Initial Notes, Exchange Notes, Private Exchange Notes or Additional Notes and whether the Notes are to be issued as certificated Notes or Global
Notes or such other information as the Trustee may reasonably request. In addition, with respect to authentication pursuant to clause (ii) or (iii) of the first sentence of this paragraph, the first such Authentication Order from the Company shall
be accompanied by an Opinion of Counsel of the Company in a form reasonably satisfactory to the Trustee. 
  
 All Notes issued under this Indenture shall be treated as a single class for all purposes under this Indenture. The Additional Notes and the Private
Exchange Notes shall bear any legend required by applicable law. 
  
 The Trustee may appoint an authenticating agent reasonably acceptable to the Issuer to authenticate Notes. Unless otherwise provided in the appointment, an authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Issuer and Affiliates of the Issuer. The Trustee shall have the right to
decline to authenticate and deliver any Notes under this Indenture if the Trustee, being advised by counsel, determines that such action may not lawfully be taken or if the Trustee in good faith shall determine that such action would expose the
Trustee to personal liability. 
  
 The Notes shall be issuable
only in registered form without coupons in denominations of $1,000 and integral multiples thereof. 
  
 SECTION 2.03. Registrar and Paying Agent. 
  
 The Issuer shall maintain or cause to be maintained an office or agency in the Borough of Manhattan, The City of New York, where (a) Notes may be presented or surrendered for registration of transfer or for exchange
(“Registrar”), (b) Notes may, subject to Section 2 of the Notes, be presented or surrendered for payment (“Paying Agent”) and (c) notices and demands to or upon the Issuer in respect of the Notes and this Indenture
may be served. The Issuer may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the Issuer of its obligation to maintain or cause to be maintained an office or agency in the Borough of Manhattan, The City of New York, for such purposes. The
Issuer may act as Registrar or Paying Agent, except that for the purposes of Articles Three and Eight and Sections 4.09 and 4.13, neither the Issuer nor any Affiliate of the Issuer shall act as Paying Agent. The Registrar shall keep a register of
the Notes and of their transfer and exchange. The Issuer, upon notice to the Trustee, may have one or more co-registrars and one or more additional paying agents reasonably acceptable to the Trustee. The term “Registrar” includes any
co-registrar and the term 

  

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“Paying Agent” includes any additional paying agent. The Issuer initially appoints the Trustee as Registrar and Paying Agent until such time as the
Trustee has resigned or a successor has been appointed. 
  
 The
Issuer shall enter into an appropriate agency agreement with any Agent not a party to this Indenture, which agreement shall implement the provisions of this Indenture that relate to such Agent. The Issuer shall notify the Trustee, in advance, of the
name and address of any such Agent. If the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act as such. 
  
 SECTION 2.04. Paying Agent To Hold Money in Trust. 
  
 The Issuer shall require each Paying Agent other than the Trustee or the Issuer or any Subsidiary to agree in writing that, subject to Article Ten and
Section 11.02, each Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal of, or interest on, the Notes (whether such money has been distributed to it by the Issuer
or any other obligor on the Notes), and shall notify the Trustee of any Default by the Issuer (or any other obligor on the Notes) in making any such payment. The Issuer at any time may require a Paying Agent to distribute all money held by it to the
Trustee and account for any money disbursed and the Trustee may at any time during the continuance of any payment Default, upon written request to a Paying Agent, require such Paying Agent to distribute all money held by it to the Trustee and to
account for any money distributed. Upon distribution to the Trustee of all money that shall have been delivered by the Issuer to the Paying Agent, the Paying Agent shall have no further liability for such money. 
  
 SECTION 2.05. Holder Lists. 
  
 The Trustee shall preserve in as current a form as is reasonably practicable
the most recent list available to it of the names and addresses of Holders. If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee at least seven (7) Business Days prior to each Interest Payment Date and at such other times as
the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Holders, which list may be conclusively relied upon by the Trustee. 
  
 SECTION 2.06. Transfer and Exchange. 
  
 Subject to Sections 2.15 and 2.16, when Notes are presented to the Registrar
with a request to register the transfer of such Notes or to exchange such Notes for an equal principal amount of Notes of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its requirements
for such transaction are met; provided, however, that the Notes surrendered for transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Registrar, duly
executed by the Holder thereof or his or her attorney duly authorized in writing. To permit registrations of transfers and exchanges, the Issuer shall execute and the Trustee shall authenticate Notes at the Registrar’s request. No service
charge shall be made for any registration of transfer or exchange, 

  

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but the Issuer may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith. 

 
 Without the prior written consent of the Issuer, the Registrar shall not
be required to register the transfer of or exchange of any Note (i) during a period beginning at the opening of business 15 days before the mailing of a notice of redemption of Notes and ending at the close of business on the day of such mailing,
(ii) selected for redemption in whole or in part pursuant to Article Three, except the unredeemed portion of any Note being redeemed in part, and (iii) beginning at the opening of business on any Record Date and ending on the close of business on
the related Interest Payment Date. 
  
 Any Holder of a beneficial
interest in a Global Note shall, by acceptance of such beneficial interest, agree that transfers of beneficial interests in such Global Notes may be effected only through a book-entry system maintained by the Holder of such Global Note (or its
agent) in accordance with the applicable legends thereon, and that ownership of a beneficial interest in the Note shall be required to be reflected in a book-entry system. 
  
 SECTION 2.07. Replacement Notes. 
  
 If a mutilated Note is surrendered to the Trustee or if the Holder of a Note claims that the Note has been lost, destroyed or wrongfully taken, the Issuer
shall issue and the Trustee shall authenticate a replacement Note if the Trustee’s requirements are met. Such Holder must provide an indemnity bond or other indemnity, sufficient in the judgment of both the Issuer and the Trustee, to protect
the Issuer, the Trustee or any Agent from any loss which any of them may suffer if a Note is replaced. The Issuer may charge such Holder for its reasonable out-of-pocket expenses in replacing a Note pursuant to this Section 2.07, including
reasonable fees and expenses of counsel and of the Trustee. 
  
 Every replacement Note is an additional obligation of the Issuer and every replacement Note Guarantee shall constitute an additional obligation of the Guarantor thereof. 
  
 The provisions of this Section 2.07 are exclusive and shall preclude (to the extent lawful) all other rights and remedies
with respect to the replacement or payment of lost, destroyed or wrongfully taken Notes. 
  
 SECTION 2.08. Outstanding Notes. 
  
 Notes outstanding at any time are all the Notes that have been authenticated by the Trustee except those cancelled by it, those delivered to it for cancellation and those described in this Section as not outstanding. A Note does not cease
to be outstanding because the Issuer, the Guarantors or any of their respective Affiliates hold the Note (subject to the provisions of Section 2.09). 
  
 If a Note is replaced pursuant to Section 2.07 (other than a mutilated Note surrendered for replacement), it ceases to be outstanding unless a Responsible
Officer of the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser. A mutilated 

  

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Note ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to Section 2.07. 
  
 If the principal amount of any Note is considered paid under Section 4.01, it
ceases to be outstanding and interest ceases to accrue. If on a Redemption Date or the Maturity Date the Trustee or Paying Agent (other than the Issuer or an Affiliate thereof) holds U.S. Legal Tender or U.S. Government Obligations sufficient to pay
all of the principal and interest due on the Notes payable on that date, then on and after that date such Notes cease to be outstanding and interest on them ceases to accrue. 
  
 SECTION 2.09. Treasury Notes. 
  
 In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Issuer
or any of its Affiliates shall be disregarded, except that, for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that a Responsible Officer of the Trustee actually
knows are so owned shall be disregarded. 
  
 SECTION 2.10. Temporary Notes.

  
 Until definitive Notes are ready for delivery, the Issuer may
prepare and the Trustee shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of definitive Notes but may have variations that the Issuer considers appropriate for temporary Notes. Without unreasonable delay, the
Issuer shall prepare and the Trustee shall authenticate definitive Notes in exchange for temporary Notes. Until such exchange, temporary Notes shall be entitled to the same rights, benefits and privileges as definitive Notes. Notwithstanding the
foregoing, so long as the Notes are represented by a Global Note, such Global Note may be in typewritten form. 
  
 SECTION 2.11. Cancellation. 
  
 The Issuer at any time may deliver Notes to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes surrendered to them for transfer, exchange or payment. The Trustee, or at the direction of
the Trustee, the Registrar or the Paying Agent (other than the Issuer or a Subsidiary), and no one else, shall cancel and, at the written direction of the Issuer, shall dispose of all Notes surrendered for transfer, exchange, payment or cancellation
in accordance with its customary procedures. Subject to Section 2.07, the Issuer may not issue new Notes to replace Notes that it has paid or delivered to the Trustee for cancellation. If the Issuer or any Guarantor shall acquire any of the Notes,
such acquisition shall not operate as a redemption or satisfaction of the Indebtedness represented by such Notes unless and until the same are surrendered to the Trustee for cancellation pursuant to this Section 2.11. 
  

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 SECTION 2.12. Defaulted Interest. 
  
 If the Issuer defaults in a payment of interest on the Notes, it shall pay the defaulted interest, plus (to the extent
lawful) any interest payable on the defaulted interest, in any lawful manner. The Issuer may pay the defaulted interest to the persons who are Holders on a subsequent special record date, which date shall be the fifteenth day next preceding the date
fixed by the Issuer for the payment of defaulted interest or the next succeeding Business Day if such date is not a Business Day. At least 15 days before any such subsequent special record date, the Issuer shall mail to each Holder, with a copy to
the Trustee, a notice that states the subsequent special record date, the payment date and the amount of defaulted interest, and interest payable on such defaulted interest, if any, to be paid. 
  
 SECTION 2.13. CUSIP and ISIN Numbers. 
  
 The Issuer in issuing the Notes may use “CUSIP” or “ISIN”
numbers, and if so, the Trustee shall use the “CUSIP” or “ISIN” numbers in notices of redemption or exchange as a convenience to Holders; provided, however, that any such notice may state that no representation is
made as to the correctness or accuracy of the “CUSIP” or “ISIN” numbers printed in the notice or on the Notes, and that reliance may be placed only on the other identification numbers printed on the Notes. The Issuer will
promptly notify the Trustee of any change in the “CUSIP” or “ISIN” numbers. 
  
 SECTION 2.14. Deposit of Moneys. 
  
 Subject to Section 2 of the Notes, prior to 10:00 a.m. New York City time on each Interest Payment Date, Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds Payment Date, the Issuer shall have deposited with the
Paying Agent in immediately available funds money sufficient to make cash payments, if any, due on such Interest Payment Date, Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds Payment Date, as the case may be, in a
timely manner which permits the Paying Agent to remit payment to the Holders on such Interest Payment Date, Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds Payment Date, as the case may be. 
  
 SECTION 2.15. Book-Entry Provisions for Global Notes. 
  
 (a) The Global Notes initially shall (i) be registered in
the name of the Depository or the nominee of such Depository, (ii) be delivered to the Trustee as custodian for such Depository and (iii) bear legends as set forth in Exhibit B, as applicable. 
  
 Members of, or participants in, the Depository
(“Participants”) shall have no rights under this Indenture with respect to any Global Note held on their behalf by the Depository, or the Trustee as its custodian, or under the Global Note, and the Depository may be treated by the
Issuer, the Trustee and any agent of the Issuer or the Trustee as the absolute owner of the Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Issuer, the Trustee or any agent of the Issuer or
the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depository or impair, as between 

  

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the Depository and Participants, the operation of customary practices governing the exercise of the rights of a Holder of any Note. 
  
 (b) Transfers of Global Notes shall be limited to transfers
in whole, but not in part, to the Depository, its successors or their respective nominees. Interests of beneficial owners in the Global Notes may be transferred or exchanged for Physical Notes in accordance with the rules and procedures of the
Depository and the provisions of Section 2.16. In addition, Physical Notes shall be transferred to all beneficial owners in exchange for their beneficial interests in Global Notes if (i) the Depository notifies the Issuer that it is unwilling or
unable to act as Depository for any Global Note, the Issuer so notifies the Trustee in writing and a successor Depository is not appointed by the Issuer within 90 days of such notice, (ii) the Issuer, at its option, notifies the Trustee in writing
that it elects to cause the issuance of the Notes in the form of Physical Notes under this Indenture, or (iii) a Default or Event of Default has occurred and is continuing and the Registrar has received a written request from any owner of a
beneficial interest in a Global Note to issue Physical Notes. Upon any issuance of a Physical Note in accordance with this Section 2.15(b) the Trustee is required to register such Physical Note in the name of, and cause the same to be delivered to,
such person or persons (or the nominee of any thereof). All such Physical Notes shall bear the applicable legends, if any. 
  
 (c) In connection with any transfer or exchange of a portion of the beneficial interest in a Global Note to beneficial owners pursuant to
paragraph (b) of this Section 2.15, the Registrar shall (if one or more Physical Notes are to be issued) reflect on its books and records the date and a decrease in the principal amount of such Global Note in an amount equal to the principal amount
of the beneficial interest in the Global Note to be transferred, and the Issuer shall execute, and the Trustee shall authenticate and deliver, one or more Physical Notes of authorized denominations in an aggregate principal amount equal to the
principal amount of the beneficial interest in the Global Note so transferred. 
  
 (d) In connection with the transfer of a Global Note as an entirety to beneficial owners pursuant to paragraph (b) of this Section 2.15,
such Global Note shall be deemed to be surrendered to the Trustee for cancellation, and (i) the Issuer shall execute, (ii) the Guarantors shall execute notations of Note Guarantees on and (iii) the Trustee shall upon written instructions from the
Issuer authenticate and deliver, to each beneficial owner identified by the Depository in exchange for its beneficial interest in such Global Note, an equal aggregate principal amount of Physical Notes of authorized denominations. 
  
 (e) Any Physical Note constituting a Restricted Security
delivered in exchange for an interest in a Global Note pursuant to paragraph (b) or (c) of this Section 2.15 shall, except as otherwise provided by Section 2.16, bear the Private Placement Legend. 
  
 (f) The Holder of any Global Note may grant proxies and
otherwise authorize any Person, including Participants and Persons that may hold interests through Participants, to take any action which a Holder is entitled to take under this Indenture or the Notes. 
  

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 SECTION 2.16. Special Transfer and Exchange Provisions. 
  
 (a) Transfers to Non-QIB Institutional Accredited
Investors. The following provisions shall apply with respect to the registration of any proposed transfer of a Restricted Security to any Institutional Accredited Investor which is not a QIB: 
  
 (i) the Registrar shall register the transfer of any
Restricted Security, whether or not such Note bears the Private Placement Legend, if (x) the requested transfer is after the second anniversary of the Issue Date; provided, however, that neither the Issuer nor any Affiliate of the
Issuer has held any beneficial interest in such Note, or portion thereof, at any time on or prior to the second anniversary of the Issue Date or (y) the proposed transferee has delivered to the Registrar a certificate substantially in the form of
Exhibit C hereto and any legal opinions and certifications as may be reasonably requested by the Trustee and the Issuer; 
  
 (ii) if the proposed transferee is a Participant and the Notes to be transferred consist of Physical Notes which after transfer are to be
evidenced by an interest in the IAI Global Note, upon receipt by the Registrar of the Physical Note and (x) written instructions given in accordance with the Depository’s and the Registrar’s procedures and (y) the certificate, if required,
referred to in clause (y) of paragraph (i) above (and any legal opinion or other certifications), the Registrar shall register the transfer and reflect on its books and records the date and an increase in the principal amount of the IAI Global Note
in an amount equal to the principal amount of Physical Notes to be transferred, and the Registrar shall cancel the Physical Notes so transferred; and 
  
 (iii) if the proposed transferor is a Participant seeking to transfer an interest in a Global Note, upon receipt by the Registrar of (x)
written instructions given in accordance with the Depository’s and the Registrar’s procedures and (y) the certificate, if required, referred to in clause (y) of paragraph (i) above, the Registrar shall register the transfer and reflect on
its books and records the date and (A) a decrease in the principal amount of the Global Note from which such interests are to be transferred in an amount equal to the principal amount of the Notes to be transferred and (B) an increase in the
principal amount of the IAI Global Note in an amount equal to the principal amount of the Notes to be transferred. 
  
 (b) Transfers to QIBs. The following provisions shall apply with respect to the registration of any proposed transfer of a
Restricted Security to a QIB: 
  
 (i) the
Registrar shall register the transfer of any Restricted Security, whether or not such Note bears the Private Placement Legend, if (x) the requested transfer is after the second anniversary of the Issue Date; provided, however, that
neither the Issuer nor any Affiliate of the Issuer has held any beneficial interest in such Note, or portion thereof, at any time on or prior to the second anniversary of the Issue Date or (y) such transfer is being made by a proposed transferor who
has checked the box provided for on the applicable Global Note stating, or has otherwise advised the Issuer and the Registrar in writing, that the sale has been made in compliance with the provisions of Rule 144A to 

  

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a transferee who has signed the certification provided for on the applicable Global Note stating, or has otherwise advised the Issuer and the Registrar in
writing, that it is purchasing the Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a QIB within the meaning of Rule 144A, and is aware that the sale to it is
being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Issuer as it has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A; 
  
 (ii) if the proposed transferee is a Participant and the Notes to be transferred consist of Physical Notes which after transfer are to be
evidenced by an interest in the 144A Global Note, upon receipt by the Registrar of the Physical Note and written instructions given in accordance with the Depository’s and the Registrar’s procedures, the Registrar shall register the
transfer and reflect on its book and records the date and an increase in the principal amount of the 144A Global Note in an amount equal to the principal amount of Physical Notes to be transferred, and the Registrar shall cancel the Physical Notes
so transferred; and 
  
 (iii) if the proposed
transferor is a Participant seeking to transfer an interest in the IAI Global Note or the Regulation S Global Note, upon receipt by the Registrar of written instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall register the transfer and reflect on its books and records the date and (A) a decrease in the principal amount of the IAI Global Note or the Regulation S Global Note, as the case may be, in an amount equal to the
principal amount of the Notes to be transferred and (B) an increase in the principal amount of the 144A Global Note in an amount equal to the principal amount of the Notes to be transferred. 
  
 (c) Transfers of Interests in the Temporary Regulation S
Global Note. The following provisions shall apply with respect to the registration of any proposed transfer of interests in the Temporary Regulation S Global Note: 
  
 (i) the Registrar shall register the transfer of an interest in the Temporary Regulation S Global Note,
whether or not such Global Note bears the Private Placement Legend if the proposed transferor has delivered to the Registrar a certificate substantially in the form of Exhibit E stating, among other things, that the proposed transferee is a
Non-U.S. Person (except for a transfer to an Initial Purchaser); 
  
 (ii) if the proposed transferee is a Participant, upon receipt by the Registrar of the documents referred to in clause (i)(x) above, if required, and instructions given in accordance with the Depository’s and the
Registrar’s procedures, the Registrar shall reflect on its books and records the date and amount of such transfer of an interest in the Temporary Regulation S Global Note. 
  
 (d) Transfers to Non-U.S. Persons. The following provisions shall apply with respect to any transfer
of a Restricted Security to a Non-U.S. Person under Regulation S: 
  
 (i) the Registrar shall register any proposed transfer of a Restricted Security to a Non-U.S. Person upon receipt of a certificate substantially in the form of Exhibit D from the proposed transferor and such
certifications, legal opinions and other information as the Trustee or the Issuer may reasonably request; and 
  

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 (ii) (a) if the proposed transferor is a Participant holding a beneficial interest in the
Rule 144A Global Note or the IAI Global Note or the Note to be transferred consists of Physical Notes, upon receipt by the Registrar of (x) the documents required by paragraph (i) and (y) instructions in accordance with the Depository’s and the
Registrar’s procedures, the Registrar shall reflect on its books and records the date and a decrease in the principal amount of the Rule 144A Global Note or the IAI Global Note, as the case may be, in an amount equal to the principal amount of
the beneficial interest in the Rule 144A Global Note or the IAI Global Note, as the case may be, to be transferred or cancel the Physical Notes to be transferred, and (b) if the proposed transferee is a Participant, upon receipt by the Registrar of
instructions given in accordance with the Depository’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the date and an increase in the principal amount of the Permanent Regulation S Global Note in an
amount equal to the principal amount of the Rule 144A Global Note, the IAI Global Note or the Physical Notes, as the case may be, to be transferred. 
  
 (e) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with the Registration Rights Agreement, the Company
shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02, the Trustee shall authenticate one or more Global Notes and/or Physical Notes not bearing the Private Placement Legend in an aggregate principal amount equal
to the principal amount of the beneficial interests in the Initial Global Notes or Physical Notes, as the case may be, tendered for acceptance in accordance with the Exchange Offer and accepted for exchange in the Exchange Offer. 
  
 (f) Restrictions on Transfer and Exchange of Global
Notes. Notwithstanding any other provisions of this Indenture, a Global Note may not be transferred as a whole except by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the
Depository or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository. 
  
 (g) Private Placement Legend. Upon the transfer, exchange or replacement of Notes not bearing the Private Placement Legend unless
otherwise required by applicable law, the Registrar shall deliver Notes that do not bear the Private Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the Private Placement Legend, the Registrar shall deliver only Notes
that bear the Private Placement Legend unless (i) there is delivered to the Trustee an Opinion of Counsel reasonably satisfactory to the Issuer and the Trustee to the effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with the provisions of the Securities Act or (ii) such Note has been offered and sold (including pursuant to the Exchange Offer) pursuant to an effective registration statement under the Securities Act.

  

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 (h) General. By its acceptance of any Note bearing the Private Placement Legend,
each Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as provided in this Indenture. 
  
 The Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 2.15 or Section 2.16. The Issuer shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable written
notice to the Registrar. 
  
 The Trustee shall have no obligation
or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among
Depository Participants or beneficial owners of interests in any Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the
terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof. 
  
 The Trustee shall have no responsibility for the actions or omissions of the Depository, or the accuracy of the books and records of the Depository.

  
 (i) Cancellation and/or Adjustment of
Global Note. At such time as all beneficial interests in a particular Global Note have been exchanged for Physical Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall
be returned to or retained and canceled by the Trustee in accordance with Section 2.11 hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note or for Physical Notes, the principal amount of Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global
Note, such other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 
  
 ARTICLE THREE 
  
 REDEMPTION 
  
 SECTION 3.01. Notices to Trustee. 
  
 If the Issuer elects to redeem Notes pursuant to Section 5 or Section 6 of the Notes, it shall notify the Trustee in writing of the Redemption Date, the
Redemption Price and the principal amount of Notes to be redeemed. The Issuer shall give notice of redemption to the 

  

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Trustee at least 45 days but not more than 60 days before the Redemption Date (unless a shorter notice shall be agreed to by the Trustee in writing),
together with such documentation and records as shall enable the Trustee to select the Notes to be redeemed. 
  
 SECTION 3.02. Selection of Notes To Be Redeemed. 
  
 If less than all of the Notes are to be redeemed at any time pursuant to Sections 5 and 6 of the Notes, the Trustee will select Notes for redemption as follows: 
  

	 	(x)	if the Notes are listed on a national securities exchange, in compliance with the requirements of the principal national securities exchange on which the Notes are listed; or

  

	 	(y)	if the Notes are not so listed, on a pro rata basis, by lot or by such method as the Trustee shall deem fair and appropriate; 

  
 provided that, in the case of such redemption pursuant to Section 6 of the Notes, the
Trustee will select the Notes on a pro rata basis or on as nearly a pro rata basis as practicable (subject to the procedures of the Depository) unless that method is otherwise prohibited. 
  
 No Notes of $1,000 or less shall be redeemed in part. 
  
 SECTION 3.03. Notice of Redemption. 
  
 At least 30 days but not more than 60 days before a Redemption Date, the
Issuer shall mail a notice of redemption by first class mail, postage prepaid, to each Holder whose Notes are to be redeemed at its registered address (except that a notice issued in connection with a redemption referred to in Section 8.01 may be
more than 60 days before such Redemption Date). At the Issuer’s request, the Trustee shall forward the notice of redemption in the Issuer’s name and at the Issuer’s expense. Each notice for redemption shall identify the Notes
(including the CUSIP or ISIN number) to be redeemed and shall state: 
  
 (1) the Redemption Date; 
  
 (2) the Redemption Price and the amount of accrued interest, if any, to be paid; 
  
 (3) the name and address of the Paying Agent; 
  
 (4) that Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption Price plus accrued interest, if
any; 
  
 (5) that, unless the Issuer defaults in
making the redemption payment, interest on Notes called for redemption ceases to accrue on and after the Redemption Date, and the only remaining right of the Holders of such Notes is to receive payment of the Redemption Price upon surrender to the
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 (6) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the Redemption Date, and upon surrender and cancellation of such Note, a new Note or Notes in aggregate principal amount equal to the unredeemed portion thereof will be issued; 
  
 (7) if fewer than all the Notes are to be redeemed, the
identification of the particular Notes (or portion thereof) to be redeemed, as well as the aggregate principal amount of Notes to be redeemed and the aggregate principal amount of Notes to be outstanding after such partial redemption; and

  
 (8) the Section of the Notes or this
Indenture, as applicable, pursuant to which the Notes are to be redeemed. 
  
 The notice, if mailed in a manner herein provided, shall be conclusively presumed to have been given, whether or not the Holder receives such notice. In any case, failure to give such notice by mail or any defect in
the notice to the Holder of any Note designated for redemption in whole or in part shall not affect the validity of the proceedings for the redemption of any other Note. Except with respect to redemption pursuant to Section 6(b) of the Notes,
notices of redemption may not be conditional. 
  
 SECTION 3.04. Effect of
Notice of Redemption. 
  
 Once notice of redemption is mailed
in accordance with Section 3.03, Notes called for redemption become due and payable on the Redemption Date and at the Redemption Price plus accrued interest, if any. Upon surrender to the Trustee or Paying Agent, such Notes called for redemption
shall be paid at the Redemption Price (which shall include accrued interest thereon to, but not including, the Redemption Date), but installments of interest, the maturity of which is on or prior to the Redemption Date, shall be payable to Holders
of record at the close of business on the relevant Record Dates. On and after the Redemption Date interest shall cease to accrue on Notes or portions thereof called for redemption unless the Issuer shall have not complied with its obligations
pursuant to Section 3.05. 
  
 SECTION 3.05. Deposit of Redemption Price.

  
 On or before 10:00 a.m. New York time on the Redemption Date,
the Issuer shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay the Redemption Price plus accrued and unpaid interest, if any, of all Notes to be redeemed on that date. 
  
 If the Issuer complies with the preceding paragraph, then, unless the Issuer defaults in the payment of such Redemption
Price plus accrued interest, if any, interest on the Notes to be redeemed will cease to accrue on and after the applicable Redemption Date, whether or not such Notes are presented for payment. 
  

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 SECTION 3.06. Notes Redeemed in Part. 
  
 If any Note is to be redeemed in part only, the notice of redemption that relates to such Note shall state the portion of
the principal amount thereof to be redeemed. A new Note or Notes in principal amount equal to the unredeemed portion of the original Note or Notes shall be issued in the name of the Holder thereof upon surrender and cancellation of the original Note
or Notes. 
  
 ARTICLE FOUR 
  
 COVENANTS 
  

	SECTION	4.01. Payment of Notes. 

  
 The Issuer shall pay the principal of (and premium, if any) and interest on the Notes in the manner provided in the Notes, the Registration Rights
Agreement and this Indenture. An installment of principal of, or interest on, the Notes shall be considered paid on the date it is due if the Trustee or Paying Agent (other than the Issuer or an Affiliate thereof) holds on that date U.S. Legal
Tender designated for and sufficient to pay the installment. Interest on the Notes will be computed on the basis of a 360-day year comprised of twelve 30-day months. 
  
 The Issuer shall pay interest on overdue principal (including, without limitation, post petition interest in a proceeding
under any Bankruptcy Law), and overdue interest, to the extent lawful, at the same rate per annum borne by the Notes. 
  
 SECTION 4.02. Maintenance of Office or Agency. 
  
 The Issuer shall maintain in the Borough of Manhattan, The City of New York, the office or agency required under Section 2.03 (which may be an office of
the Trustee or an affiliate of the Trustee or Registrar). The Issuer shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Issuer shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the address of the Trustee set forth in Section 12.02. 
  
 The Issuer may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations. The Issuer will give prompt written notice to the Trustee of any such designation or rescission and of any
change in the location of any such other office or agency. 
  
 The
Issuer hereby initially designates U.S. Bank National Association, located at 100 Wall Street, New York, New York 10286, Lobby Level, Attn: Corporate Trust, as such office of the Issuer in accordance with Section 2.03. 
  

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 SECTION 4.03. Corporate Existence. 
  
 Except as otherwise permitted by Article Five, the Issuer shall do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence and the corporate, partnership, limited liability or other existence of each of its Restricted Subsidiaries in accordance with the respective organizational documents of each such Restricted
Subsidiary and the material rights (charter and statutory) and material franchises of the Issuer and each of its Restricted Subsidiaries; provided, however, that the Issuer shall not be required to preserve any such right, franchise or
corporate existence with respect to itself or any Restricted Subsidiary if the loss thereof would not in the aggregate, have a material adverse effect on the Issuer and the Guarantors, taken as a whole. 
  
 SECTION 4.04. Payment of Taxes. 
  
 The Issuer and the Guarantors shall, and shall cause each of the Restricted
Subsidiaries to, pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all material taxes, assessments and governmental charges levied or imposed upon it or any of the Restricted Subsidiaries or upon the
income, profits or property of it or any of the Restricted Subsidiaries; provided, however, that the Issuer and the Guarantors shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge
or claim whose amount the applicability or validity is being contested in good faith by appropriate actions and for which appropriate provision has been made. 
  

SECTION 4.05. Maintenance of Properties and Insurance. 
  
 (a) The Issuer shall cause all material properties owned by or leased by it or any of its Restricted Subsidiaries used or useful to the
conduct of its business or the business of any of its Restricted Subsidiaries to be maintained and kept in normal condition, repair and working order and supplied with all necessary equipment and shall cause to be made all necessary repairs,
renewals, replacements, and betterments thereof, all as in its judgment may be necessary, so that the business carried on in connection therewith may be properly conducted at all times; provided, however, that nothing in this Section
4.05 shall prevent the Issuer or any of its Restricted Subsidiaries from discontinuing the use, operation or maintenance of any of such properties, or disposing of any of them, if such discontinuance or disposal is, in the judgment of the Board of
Directors of the Issuer or any such Restricted Subsidiary desirable in the conduct of the business of the Issuer or any such Restricted Subsidiary, and if such discontinuance or disposal would not in the aggregate have a material adverse effect on
the ability of the Issuer or the Guarantors to perform each of their respective obligations hereunder; provided, further, that nothing in this Section 4.05 shall prevent the Issuer or any of its Restricted Subsidiaries from
discontinuing or disposing of any properties to the extent otherwise permitted by this Indenture. 
  
 (b) To the extent available at commercially reasonable rates, the Issuer shall maintain, and shall cause its Restricted Subsidiaries to
maintain, insurance with responsible carriers against such risks and in such amounts, and with such deductibles, retentions, 

  

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self-insured amounts and co-insurance provisions, as are customarily carried by similar businesses of similar size. 
  
 SECTION 4.06. Compliance Certificate; Notice of Default. 
  
 (a) The Issuer shall deliver to the Trustee, within 120 days
after the close of each fiscal year, an Officers’ Certificate stating that a review of the activities of the Issuer and its Subsidiaries has been made under the supervision of the signing Officers with a view to determining whether the Issuer
and the Guarantors have kept, observed, performed and fulfilled their obligations under this Indenture and further stating, as to each such Officer signing such certificate, that to the best of such Officer’s knowledge, the Issuer and the
Guarantors during such preceding fiscal year has kept, observed, performed and fulfilled each and every such covenant and no Default occurred during such year and at the date of such certificate there is no Default that has occurred and is
continuing or, if such signers do know of such Default, the certificate shall specify such Default and what action, if any, the Issuer is taking or proposes to take with respect thereto. The Officers’ Certificate shall also notify the Trustee
should the Issuer elect to change the manner in which it fixes the fiscal year end. 
  
 (b) The Issuer shall deliver to the Trustee promptly and in any event within five Business Days after the Issuer becomes aware of the
occurrence of any Default an Officers’ Certificate specifying the Default and what action, if any, the Issuer is taking or proposes to take with respect thereto. 
  
 SECTION 4.07. Compliance with Laws. 
  
 The Issuer shall comply, and shall cause each of its Restricted Subsidiaries to comply, with all applicable statutes, rules, regulations, orders and
restrictions of the United States, all states and municipalities thereof, and of any governmental department, commission, board, regulatory authority, bureau, agency and instrumentality of the foregoing, in respect of the conduct of their respective
businesses and the ownership of their respective properties, except, in any such case, to the extent the failure to so comply would not in the aggregate, have a material adverse effect on the financial condition or results of operations of the
Issuer and its Restricted Subsidiaries taken as a whole. 
  
 SECTION 4.08.
Waiver of Stay, Extension or Usury Laws. 
  
 The Issuer and
each Guarantor covenants (to the extent permitted by applicable law) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that
would prohibit or forgive such Issuer or such Guarantor from paying all or any portion of the principal of and/or interest on the Notes or the Note Guarantee of any such Guarantor as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this Indenture, and (to the extent permitted by applicable law) each hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  

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 SECTION 4.09. Change of Control. 
  
 Upon the occurrence of any Change of Control, each Holder of Notes will have the right to require that the Issuer purchase
that Holder’s Notes pursuant to a Change of Control Offer (the “Change of Control Offer”). In the Change of Control Offer, the Issuer will offer to pay an amount in cash (the “Change of Control
Purchase Price”) equal to 101% of the principal amount of Notes to be purchased, plus accrued and unpaid interest thereon, if any, to the date of purchase. Within 30 days following any Change of Control, the Issuer will mail, or
cause to be mailed, a notice to each Holder describing the transaction or transactions that constitute the Change of Control and offering to purchase Notes on the date (the “Change of Control Payment Date”) specified
in such notice, which date shall be a Business Day no earlier than 30 days and no later than 60 days from the date such notice is mailed, pursuant to the procedures described below. Such notice shall state: 
  
 (1) that the Change of Control Offer is being made pursuant
to this Section 4.09 and that all Notes tendered and not withdrawn will be accepted for payment; 
  
 (2) the purchase price (including the amount of accrued interest) and the Change of Control Payment Date; 
  
 (3) that any Note not tendered will continue to accrue
interest; 
  
 (4) that, unless the Issuer
defaults in making payment therefor, any Note accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest after the Change of Control Payment Date; 
  
 (5) that Holders electing to have a Note purchased pursuant to a Change of Control Offer will be required to
surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day prior
to the Change of Control Payment Date; 
  
 (6)
that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the second Business Day prior to the Change of Control Payment Date, a telegram, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Notes the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have such Note purchased; 
  
 (7) that Holders whose Notes are purchased only in part will be issued new Notes in a principal amount equal
to the unpurchased portion of the Notes surrendered (equal to $1,000 or an integral multiple thereof); and 
  
 (8) the circumstances and relevant facts regarding such Change of Control. 
  

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 On or before the Change of Control Payment Date, the Issuer will, to the extent lawful: 
  
 (i) accept for payment all Notes or portions thereof
properly tendered pursuant to the Change of Control Offer; 
  
 (ii) deposit with the Paying Agent U.S. Legal Tender sufficient to pay the Change of Control Purchase Price in respect of all Notes or portions thereof so tendered; and 
  
 (iii) deliver or cause to be delivered to the Trustee the
Notes so accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions thereof being purchased by the Issuer. 
  

The Paying Agent will promptly mail to each Holder of Notes so tendered the Change of Control Purchase Price for such Notes, and the Trustee will
promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note will be in a principal
amount of $1,000 or an integral multiple thereof. 
  
 The Issuer
will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. 
  
 The Issuer’s obligation to make a Change of Control Offer will be satisfied if a third party makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by the Issuer and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer or if a
notice of redemption has been given pursuant to Section 5 of the Notes. A Change of Control Offer may be made in advance of a Change of Control, conditioned upon the Change of Control, if a definitive agreement relating to such Change of Control is
entered into prior to the time of making the Change of Control Offer . 
  
 The Issuer shall cause the Change of Control Offer to remain open for at least 20 Business Days or for such longer period as may be required by law. The Issuer will comply, and will cause any third party making a Change of Control Offer to
comply, with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with a Change of Control Offer. To the extent the
provisions of any applicable securities laws or regulations conflict with the provisions of this Section 4.09, the Issuer will not be deemed to have breached their obligations under this Section 4.09 by virtue of complying with such laws or
regulations. 
  
 SECTION 4.10. Limitations on Additional Indebtedness.

  
 (a) The Issuer will not, and will not permit
any Restricted Subsidiary to, directly or indirectly, incur any Indebtedness; provided that the Issuer or any Guarantor may incur additional Indebtedness (including Acquired Indebtedness) and any Restricted Subsidiary 

  

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may incur Acquired Indebtedness, in each case, if, after giving effect thereto, the Consolidated Interest Coverage Ratio would be at least 2.25 to 1.00
(the “Coverage Ratio Exception”). 
  
 (b) Notwithstanding Section 4.10(a), each of the following shall be permitted (the “Permitted Indebtedness”): 
  
 (1) Indebtedness of the Issuer and any Restricted Subsidiary under the Credit Facilities in an aggregate
amount at any time outstanding not to exceed $290.0 million, less, the aggregate amount of Net Available Proceeds applied to repayments under the Credit Facilities in accordance with Section 4.13 to the extent a permanent repayment and/or
commitment reduction is required pursuant to the second clause (1) thereof as a result of such application; 
  
 (2) the Notes issued on the Issue Date and the Note Guarantees and the Exchange Notes and the Note Guarantees in respect thereof to be
issued pursuant to the Registration Rights Agreement; 
  
 (3) Indebtedness of the Issuer and the Restricted Subsidiaries to the extent outstanding on the Issue Date (including Indebtedness of the Company and its Subsidiaries) after giving effect to the intended use of proceeds of the Notes (other
than Indebtedness referred to in clause (1), (2) or (5)); 
  
 (4) Indebtedness under Hedging Obligations for bona fide hedging purposes of the Issuer or any Restricted Subsidiary not for the purpose of speculation; 
  
 (5) Indebtedness of the Issuer owed to a Restricted
Subsidiary and Indebtedness of any Restricted Subsidiary owed to the Issuer or any other Restricted Subsidiary; provided, however, that upon any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or such Indebtedness
being owed to any Person other than the Issuer or a Restricted Subsidiary, the Issuer or such Restricted Subsidiary, as applicable, shall be deemed to have incurred Indebtedness not permitted by this clause (5); 
  
 (6) Indebtedness in respect of payment, bid, appeal,
performance or surety or other similar bonds, completion guarantees, export or import indemnities or similar instruments issued for the account of the Issuer or any Restricted Subsidiary in the ordinary course of business, including guarantees or
obligations of the Issuer or any Restricted Subsidiary with respect to letters of credit supporting such payment, bid, performance or surety obligations (in each case other than for an obligation for money borrowed); 
  
 (7) Indebtedness incurred by the Issuer or any Restricted
Subsidiary constituting reimbursement obligations with respect to letters of credit issued in the ordinary course of business, including, without limitation, in respect of workers’ compensation claims or self-insurance, or other Indebtedness
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 (8) Purchase Money Indebtedness incurred by the Issuer or any Restricted Subsidiary, and
Refinancing Indebtedness thereof, in an aggregate amount not to exceed at any time outstanding the greater of (i) $25.0 million or (ii) 5.0% of Consolidated Tangible Assets; 
  
 (9) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or
similar instrument inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within five Business Days of
incurrence; 
  
 (10) Indebtedness arising in
connection with endorsement of instruments for deposit in the ordinary course of business; 
  
 (11) indemnification, adjustment of purchase price, earn-out or similar obligations, in each case, incurred or assumed in connection with
the acquisition or disposition of any business or assets of the Issuer or any Restricted Subsidiary or Equity Interests of a Restricted Subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such
business, assets or Capital Stock for the purpose of financing or in contemplation of any such acquisition; provided that (a) any amount of such obligations included on the face of the balance sheet of the Issuer or any Restricted Subsidiary
shall not be permitted under this clause (11) and (b) in the case of a disposition, the maximum aggregate liability in respect of all such obligations outstanding under this clause (11) shall at no time exceed the gross proceeds actually received by
the Issuer and the Restricted Subsidiaries in connection with such disposition; 
  
 (12) Indebtedness of Foreign Subsidiaries in an aggregate amount not to exceed $5.0 million at any time outstanding; 
  
 (13) Indebtedness of the Issuer or any Restricted Subsidiary
in an aggregate amount not to exceed $20.0 million at any time outstanding; and 
  
 (14) Refinancing Indebtedness with respect to Indebtedness incurred pursuant to the Coverage Ratio Exception or clauses (2) or (3) above
or this clause (14). 
  
 (c) For purposes of
determining compliance with this Section 4.10, in the event that an item of Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness described in clauses (1) through (14) above or is entitled to be incurred
pursuant to the Coverage Ratio Exception, the Issuer shall, in its sole discretion, classify such item of Indebtedness and may divide and classify such Indebtedness in more than one of the types of Indebtedness described, except that Indebtedness
incurred under the Credit Facilities on the Issue Date shall be deemed to have been incurred under clause (1) above, and may later reclassify any item of Indebtedness described in clauses (1) through (14) above (provided that at the time of
reclassification it meets the criteria in such category or categories). In addition, for purposes of determining any particular amount of Indebtedness under this Section 4.10, guarantees, Liens or letter of credit obligations supporting Indebtedness
otherwise included in the determination of such particular amount shall not be included so long as incurred by a Person 

  

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that could have incurred such Indebtedness. Accrual of interest, accretion or amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, and the payment of dividends on any Disqualified Stock in the form of additional shares of the same class of Disqualified Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Stock for purposes of this Section 4.10. Notwithstanding any other provision of this Section 4.10, the maximum amount of Indebtedness that the Issuer or any Restricted Subsidiary may incur pursuant to this
Section 4.10 shall not be deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values. 
  
 SECTION 4.11. Limitations on Restricted Payments. 
  
 (a) The Issuer will not, and will not permit any Restricted Subsidiary to, directly or indirectly, make any Restricted Payment if at the
time of such Restricted Payment: 
  
 (1) a
Default shall have occurred and be continuing or shall occur as a consequence thereof; 
  
 (2) the Issuer cannot incur $1.00 of additional Indebtedness pursuant to the Coverage Ratio Exception; or 
  
 (3) the amount of such Restricted Payment, when added to the
aggregate amount of all other Restricted Payments made after the Issue Date (other than Restricted Payments made pursuant to clause (2), (3), (4), (5), (6), (7), (8), (9), (10) or (11) of the next paragraph), exceeds the sum (the
“Restricted Payments Basket”) of (without duplication): 
  
 (a) 50% of Consolidated Net Income for the period (taken as one accounting period) commencing on the first day of the fiscal quarter
during which the Issue Date occurs to and including the last day of the fiscal quarter ended immediately prior to the date of such calculation for which consolidated financial statements are available (or, if such Consolidated Net Income shall be a
deficit, minus 100% of such aggregate deficit), plus 
  
 (b) 100% of the aggregate net cash proceeds received by the Issuer either (x) as contributions to the common equity of the Issuer after the Issue Date or (y) from the issuance and sale of Qualified Equity Interests
after the Issue Date, other than (A) any such proceeds which are used to redeem Notes in accordance with Section 6 of the Notes or (B) any such proceeds or assets received from a Subsidiary of the Issuer, plus 
  
 (c) the aggregate amount by which Indebtedness (other than
any Subordinated Indebtedness) incurred by the Issuer or any Restricted Subsidiary subsequent to the Issue Date is reduced on the Issuer’s balance sheet upon the conversion or exchange (other than by a Subsidiary of the Issuer) into Qualified
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by the Issuer or any Restricted Subsidiary upon such conversion or exchange), plus 
  
 (d) the sum of (1) 100% of the aggregate amount received in cash and the Fair Market Value of
property and marketable securities received by means of (A) the sale or other disposition (other than to the Issuer or a Restricted Subsidiary) of Restricted Investments made by the Issuer or its Restricted Subsidiaries after the Issue Date and
repurchases and redemptions of such Restricted Investments from the Issuer or its Restricted Subsidiaries and repayments of loans or advances which constitute Restricted Investments made by the Issuer or its Restricted Subsidiaries after the Issue
Date or (B) the sale (other than to the Issuer or a Restricted Subsidiary) of the Equity Interests of an Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary or a dividend from an Unrestricted Subsidiary, and (2) in the case of
the redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, or the merger or consolidation of an Unrestricted Subsidiary with and into the Issuer or a Restricted Subsidiary or the transfer of assets of an Unrestricted Subsidiary to
the Issuer or a Restricted Subsidiary, the Fair Market Value of the Investment in such Unrestricted Subsidiary at the time of such merger, consolidation or transfer of assets; provided, however, that the amount under this clause (d) shall not
exceed the amount by which such Investments reduced the Restricted Payments Basket. 
  
 (b) The foregoing provisions will not prohibit: 
  

(1) the payment by the Issuer or any Restricted Subsidiary of any dividend or other distribution within 60 days after the date of
declaration thereof, if on the date of declaration the payment would have complied with the provisions of this Indenture; 
  
 (2) the redemption of any Equity Interests of the Issuer in exchange for, or out of the proceeds of the issuance and sale within 30 days
of, Qualified Equity Interests; 
  
 (3) the
redemption of Subordinated Indebtedness of the Issuer or any Restricted Subsidiary (a) in exchange for, or out of the proceeds of the issuance and sale within 30 days of, Qualified Equity Interests or (b) in exchange for, or out of the proceeds of
the incurrence within 30 days of, Refinancing Indebtedness permitted to be incurred under Section 4.10 and the other terms of this Indenture or (c) upon a Change of Control or in connection with an Asset Sale to the extent required by the agreement
governing such Subordinated Indebtedness but only if the Issuer shall have complied with Section 4.09 and 4.13 and purchased all Notes validly tendered pursuant to the relevant offer prior to redeeming such Subordinated Indebtedness; 
  
 (4) the redemption of Equity Interests of the Issuer or any
direct or indirect parent company of the Issuer held by officers, directors, employees or consultants or former officers, directors, employees or consultants (or their transferees, estates or beneficiaries under their estates), upon their death,
disability, retirement, severance or termination of employment or service; provided that the aggregate cash consideration paid for 

  

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all such redemptions shall not exceed $2.0 million during any calendar year (with unused amounts being available to be used in succeeding calendar years
subject to a maximum of $5.0 million in any calendar year (without giving effect to clauses (B) and (C),)) plus (B) the amount of any net cash proceeds received by or contributed to the Issuer from the issuance and sale after the Issue Date of
Qualified Equity Interests of the Issuer or any direct or indirect parent company of the Issuer to officers, directors or employees, plus (C) the net cash proceeds of any “key-man” life insurance policies; 
  
 (5) repurchases of Equity Interests deemed to occur upon the
exercise of stock options if the Equity Interests represents a portion of the exercise price thereof; or 
  
 (6) the declaration and payment of regularly scheduled or accrued dividends to the holders of any class or series of Disqualified Equity
Interests of the Issuer issued on or after the date of this Indenture; provided that at the time of such issuance and after giving pro forma effect thereto, the Issuer would have been able to incur at least $1.00 of additional Indebtedness
pursuant to the Consolidated Ratio Exception described in Section 4.10; 
  
 (7) any payments made by the Issuer (including any payments made by the Issuer to any direct or indirect parent company of the Issuer) in connection with the Transactions; 
  
 (8) Investments that are made with Excluded Contributions;

  
 (9) cash payments, advances, loans or expense
reimbursements made to any direct or indirect parent corporation of the Issuer to permit the payment by such entity of (i) general operating expenses, accounting, legal, corporate reporting and administrative expenses incurred in the ordinary course
of its business not to exceed $1.0 million in any fiscal year ($2.0 million after the consummation of a Public Equity Offering) and (ii) any taxes, duties or similar governmental fees to the extent such tax obligations are directly attributable to
its ownership of the Issuer and its Restricted Subsidiaries, including Permitted Tax Payments; 
  
 (10) the repurchase, redemption or other acquisition for value of Equity Interests of the Issuer or dividends or distributions to any
direct or indirect parent company of the Issuer to permit it to repurchase, redeem or acquire such parent company’s Equity Interests representing fractional shares of such Equity Interests in connection with a merger, consolidation,
amalgamation or other combination involving the Issuer or any direct or indirect parent company of the Issuer, and 
  
 (11) additional Restricted Payments in an amount not to exceed $15.0 million. 
  
 provided that (a) in the case of any Restricted Payment pursuant to clause (3), (4),
(6) or (11) above, no Default shall have occurred and be continuing or occur as a consequence thereof and (b) no issuance and sale of Qualified Equity Interests that are used to make a payment pursuant to clause (2), (3) or (4)(B) above shall
increase the Restricted Payments Basket. 
  

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 SECTION 4.12. Limitations on Liens. 
  
 The Issuer shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, create, incur, assume or
permit or suffer to exist any Lien of any nature whatsoever against any assets of the Issuer or any Restricted Subsidiary (including Equity Interests of a Restricted Subsidiary), whether owned at the Issue Date or thereafter acquired, or any
proceeds therefrom, or assign or otherwise convey any right to receive income or profits therefrom (other than Permitted Liens), unless contemporaneously therewith: 
  
 (1) in the case of any Lien securing an obligation that ranks pari passu with the Notes or a Note
Guarantee, effective provision is made to secure the Notes or such Note Guarantee, as the case may be, at least equally and ratably with or prior to such obligation with a Lien on the same collateral; and 
  
 (2) in the case of any Lien securing an obligation that is
subordinated in right of payment to the Notes or a Note Guarantee, effective provision is made to secure the Notes or such Note Guarantee, as the case may be, with a Lien on the same collateral that is prior to the Lien securing such subordinated
obligation, 
  
 in each case, for so long as such obligation is secured by such
Lien. 
  
 SECTION 4.13. Limitations on Asset Sales. 
  
 (a) The Issuer will not, and will not permit any Restricted
Subsidiary to, directly or indirectly, consummate any Asset Sale unless: 
  
 (1) the Issuer or such Restricted Subsidiary receives consideration at the time of such Asset Sale at least equal to the Fair Market Value of the assets or Equity Interests included in such Asset Sale; and 

 
 (2) at least 75% of the total consideration received in
such Asset Sale consists of cash or Cash Equivalents. 
  
 (b) For purposes of clause (2) of Section 4.13(a), the following shall be deemed to be cash: 
  
 (1) the amount (without duplication) of any liabilities (other than contingent liabilities or Subordinated Indebtedness) of the Issuer or
such Restricted Subsidiary that is expressly assumed by the transferee in such Asset Sale and with respect to which the Issuer or such Restricted Subsidiary, as the case may be, is unconditionally released by the holder of such Indebtedness,

  
 (2) the amount of any securities, notes or
other obligations received from such transferee that are within 90 days converted by the Issuer or such Restricted Subsidiary to cash (to the extent of the cash actually so received), and 
  

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 (3) the Fair Market Value of (i) any assets (other than securities) received by the
Issuer or any Restricted Subsidiary to be used by it in a Permitted Business, (ii) Equity Interests in a Person that is a Restricted Subsidiary or in a Person engaged in a Permitted Business that shall become a Restricted Subsidiary immediately upon
the acquisition of such Person by the Issuer or (iii) a combination of (i) and (ii); and 
  
 (4) any Designated Noncash Consideration received by the Issuer or any of its Restricted Subsidiaries in such Asset Sale having an
aggregate Fair Market Value, taken together with all other Designated Noncash Consideration received since the date of this Indenture pursuant to this clause (d) that is at that time outstanding, not to exceed the greater of (i) $20.0 million and
(ii) 5.0% of Consolidated Tangible Assets at the time of the receipt of such Designated Noncash Consideration (with the Fair Market Value of each item of Designated Noncash Consideration being measured at the time received and without giving effect
to subsequent changes in value). 
  
 (c) If at
any time any non-cash consideration received by the Issuer or any Restricted Subsidiary, as the case may be, pursuant to clause (b) above in connection with any Asset Sale is repaid or converted into or sold or otherwise disposed of for cash (other
than interest received with respect to any such non-cash consideration), then the date of such repayment, conversion or disposition shall be deemed to constitute the date of an Asset Sale hereunder and the Net Available Proceeds thereof shall be
applied in accordance with this Section 4.13. 
  
 (d) If the Issuer or any Restricted Subsidiary engages in an Asset Sale, the Issuer or such Restricted Subsidiary shall, no later than 365 days following the consummation thereof, apply all or any of the Net Available Proceeds therefrom to:

  
 (1) repay Senior Debt or Guarantor Senior
Debt, and in the case of any such repayment under any revolving credit facility, effect a permanent reduction in the availability under such revolving credit facility; 
  
 (2) repay any Indebtedness which was secured by the assets sold in such Asset Sale; and/or 
  
 (3) (A) invest all or any part of the Net Available Proceeds
thereof in the purchase of assets (other than securities) to be used by the Issuer or any Restricted Subsidiary in the Permitted Business or the making of capital improvements to assets used in a Permitted Business, (B) acquire Qualified Equity
Interests in a Person that is a Restricted Subsidiary or in a Person engaged in a Permitted Business that shall become a Restricted Subsidiary immediately upon the consummation of such acquisition or (C) a combination of (A) and (B). 
  
 The amount of Net Available Proceeds not applied or invested as provided in
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 (e) When the aggregate amount of Excess Proceeds equals or exceeds $10.0 million, the
Issuer will be required to make an offer to purchase from all Holders and, if applicable, redeem (or make an offer to do so) any Pari Passu Indebtedness of the Issuer the provisions of which require the Issuer to redeem such Indebtedness with the
proceeds from any Asset Sales (or offer to do so), in an aggregate principal amount of Notes and such Pari Passu Indebtedness equal to the amount of such Excess Proceeds as follows: 
  
 (1) the Issuer will (a) make an offer to purchase (a “Net Proceeds Offer”) to
all Holders in accordance with the procedures set forth in this Indenture, and (b) redeem (or make an offer to do so) any such other Pari Passu Indebtedness, pro rata in proportion to the respective principal amounts of the Notes and such
other Indebtedness required to be redeemed, the maximum principal amount of Notes and Pari Passu Indebtedness that may be redeemed out of the amount (the “Payment Amount”) of such Excess Proceeds; 
  
 (2) the offer price for the Notes will be payable in cash in
an amount equal to 100% of the principal amount of the Notes tendered pursuant to a Net Proceeds Offer, plus accrued and unpaid interest thereon, if any, to the date such Net Proceeds Offer is consummated (the “Offered
Price”), in accordance with the procedures set forth in this Indenture and the Redemption Price for such Pari Passu Indebtedness (the “Pari Passu Indebtedness Price”) shall be as set forth in the
related documentation governing such Indebtedness; 
  
 (3) if the aggregate Offered Price of Notes validly tendered and not withdrawn by Holders thereof exceeds the pro rata portion of the Payment Amount allocable to the Notes, Notes to be purchased will be selected on a pro rata
basis; and 
  
 (4) upon completion of such Net
Proceeds Offer in accordance with the foregoing provisions, the amount of Excess Proceeds with respect to which such Net Proceeds Offer was made shall be deemed to be zero. 
  
 (f) To the extent that the sum of the aggregate Offered Price of Notes tendered pursuant to a Net Proceeds
Offer and the aggregate Pari Passu Indebtedness Price paid to the holders of such Pari Passu Indebtedness is less than the Payment Amount relating thereto (such shortfall constituting a “Net Proceeds Deficiency”), the
Issuer may use the Net Proceeds Deficiency, or a portion thereof, for general corporate purposes, subject to the provisions of this Indenture. 
  
 (g) In the event of the transfer of substantially all (but not all) of the assets of the Issuer and Restricted Subsidiaries as an entirety
to a Person in a transaction covered by and effected in accordance with Article Five, the successor shall be deemed to have sold for cash at Fair Market Value the assets of the Issuer and the Restricted Subsidiaries not so transferred for purposes
of this Section 4.13, and the successor shall comply with the provisions of this Section 4.13 with respect to such deemed sale as if it were an Asset Sale (with such Fair Market Value being deemed to be Net Available Proceeds for such purpose).

  

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 (h) Upon the commencement of a Net Proceeds Offer, the Issuer shall send, by first class
mail, a notice to the Trustee and to each Holder at its registered address. The notice shall contain all instructions and materials necessary to enable such Holder to tender Notes pursuant to the Net Proceeds Offer. Any Net Proceeds Offer shall be
made to all Holders. The notice, which shall govern the terms of the Net Proceeds Offer, shall state: 
  
 (1) that the Net Proceeds Offer is being made pursuant to this Section; 
  
 (2) the Payment Amount, the Offered Price, and the date on which Notes tendered and accepted for payment
shall be purchased, which date shall be at least 30 days and not later than 60 days from the date such notices is mailed (the “Net Proceeds Payment Date”); 
  
 (3) that any Notes not tendered or accepted for payment shall continue to accrue interest; 
  
 (4) that, unless the Issuer defaults in making such payment,
any Notes accepted for payment pursuant to the Net Proceeds Offer shall cease to accrue interest on and after the Net Proceeds Payment Date; 
  
 (5) that Holders electing to have any Notes purchased pursuant to any Net Proceeds Offer shall be required to surrender the Notes, with
the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, or transfer by book-entry transfer, to the Issuer, a depository, if appointed by the Issuer, or the Paying Agent at the address specified in the
notice at least three days before the Net Proceeds Payment Date; 
  
 (6) that Holders shall be entitled to withdraw their election if the Issuer, the Depository or the Paying Agent, as the case may be, receives, not later than the Net Proceeds Payment Date, a notice setting forth the
name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have such Note purchased; 
  
 (7) that if the aggregate principal amount of Notes surrendered by Holders exceeds the Payment Amount, the
Issuer shall select the Notes to be purchased on a pro rata basis (with such adjustments as may be deemed appropriate by the Issuer so that only Notes in denominations of $1,000, or integral multiples thereof, shall be purchased); and

  
 (8) that Holders whose Notes were purchased
only in part shall be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or transferred by book-entry). 
  
 (i) On the Net Proceeds Payment Date, the Issuer shall, to the extent lawful: (1) accept for payment all Notes or portions thereof
properly tendered pursuant to the Net Proceeds Offer, subject to pro ration if the aggregate Notes tendered exceed the Payment Amount allocable to the Notes; (2) deposit with the Paying Agent U.S. Legal Tender equal to 

  

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the lesser of the Payment Amount allocable to the Notes and the amount sufficient to pay the Offered Price in respect of all Notes or portions thereof so
tendered; and (3) deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions thereof being repurchased by the Issuer. The Issuer shall
publicly announce the results of the Net Proceeds Offer on the Net Proceeds Payment Date. 
  
 (j) The Paying Agent shall promptly mail to each Holder of Notes so tendered the Offered Price for such Notes, and the Trustee shall
promptly authenticate pursuant to an Authentication Order and mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unrepurchased portion of the Notes surrendered, if any; provided that
each such new Note shall be in principal amount of $1,000 or an integral multiple thereof. However, if the Net Proceeds Payment Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid
interest shall be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest shall be payable to Holders who tender Notes pursuant to the Net Proceeds Offer. 
  
 (k) The Issuer will comply with applicable tender offer
rules, including the requirements of Rule 14e-1 under the Exchange Act and any other applicable laws and regulations in connection with the purchase of Notes pursuant to a Net Proceeds Offer. To the extent that the provisions of any securities laws
or regulations conflict with this Section 4.13, the Issuer shall comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 4.13 by virtue of this compliance. 
  
 SECTION 4.14. Limitations on Transactions with Affiliates. 
  
 (a) The Issuer will not, and will not permit any Restricted
Subsidiary to, directly or indirectly, in one transaction or a series of related transactions, sell, lease, transfer or otherwise dispose of any of its assets to, or purchase any assets from, or enter into any contract, agreement, understanding,
loan, advance or guarantee with, or for the benefit of, any Affiliate (an “Affiliate Transaction”), unless: 
  
 (1) such Affiliate Transaction is on terms that are no less favorable to the Issuer or the relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction at such time on an arm’s-length basis by the Issuer or that Restricted Subsidiary from a Person that is not an Affiliate of the Issuer or that Restricted Subsidiary; and 
  
 (2) the Issuer delivers to the Trustee: 
  
 (x) with respect to any Affiliate Transaction involving
aggregate value in excess of $5.0 million, an Officers’ Certificate certifying that such Affiliate Transaction complies with clause (1) above and a Secretary’s Certificate which sets forth and authenticates a resolution that has been
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 (y) with respect to any Affiliate Transaction involving aggregate value of $7.5 million
or more, the certificates described in the preceding clause (a) and a written opinion as to the fairness of such Affiliate Transaction to the Issuer or such Restricted Subsidiary from a financial point of view issued by an Independent Financial
Advisor to the Board of Directors of the Issuer. 
  
 (b) The foregoing restrictions shall not apply to: 
  
 (1) transactions exclusively between or among (a) the Issuer and one or more Restricted Subsidiaries or (b) Restricted Subsidiaries or entities that become Restricted Subsidiaries as a result of such transaction;
provided, in each case, that no Affiliate of the Issuer (other than another Restricted Subsidiary) owns Equity Interests of any such Restricted Subsidiary; 
  
 (2) reasonable director, officer and employee compensation (including bonuses) and other benefits (including
retirement, health, stock option and other benefit plans) and indemnification arrangements, in each case approved by the Board of Directors in good faith; 
  
 (3) the entering into of a tax sharing agreement, or payments pursuant thereto, between the Issuer and/or one or more Subsidiaries, on the
one hand, and any other Person with which the Issuer or such Subsidiaries are required or permitted to file a consolidated tax return or with which the Issuer or such Subsidiaries are part of a consolidated group for tax purposes to be used by such
Person to pay taxes, and which payments by the Issuer and the Restricted Subsidiaries are not in excess of the tax liabilities that would have been payable by them on a stand-alone basis (“Permitted Tax Payments”);

  
 (4) loans and advances permitted by clause
(3) of the definition of “Permitted Investments”; 
  
 (5) (a) the Consulting Agreement and (b) payments of Consulting Fees pursuant to the Consulting Agreement; 
  
 (6) Restricted Payments made in accordance with Section 4.11 and Permitted Investments; 
  
 (7) (x) any agreement in effect on this Issue Date and
disclosed in this Offering Memorandum, as in effect on the Issue Date or as thereafter amended or replaced in any manner, that, taken as a whole, is not more disadvantageous to the Holders or the Issuer in any material respect than such agreement as
it was in effect on the Issue Date or (y) any transaction pursuant to any agreement referred to in the immediately preceding clause (x); 
  
 (8) any transaction with a Person which would constitute an Affiliate Transaction solely because the Issuer or a Restricted Subsidiary
owns an equity interest in or otherwise controls such Person; provided that no Affiliate of the Issuer or any of its Subsidiaries 

  

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other than the Issuer or a Restricted Subsidiary shall have a beneficial interest in such Person; and 
  
 (9) (a) any transaction with an Affiliate where the only
consideration paid by the Issuer or any Restricted Subsidiary is Qualified Equity Interests or (b) the issuance or sale of any Qualified Equity Interests. 
  
 SECTION 4.15. Limitations on Dividend and Other Restrictions Affecting Restricted Subsidiaries. 
  
 The Issuer will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create or otherwise cause or
permit to exist or become effective any consensual encumbrance or consensual restriction on the ability of any Restricted Subsidiary to: 
  
 (a) pay dividends or make any other distributions on or in respect of its Equity Interests; 
  
 (b) make loans or advances or pay any Indebtedness or other
obligation owed to the Issuer or any other Restricted Subsidiary; or 
  
 (c) transfer any of its assets to the Issuer or any other Restricted Subsidiary; except for: 
  
 (1) encumbrances or restrictions existing under or by reason of applicable law, regulation or order; 
  
 (2) encumbrances or restrictions existing under this
Indenture, the Notes and the Note Guarantees; 
  
 (3) non-assignment provisions of any contract or any lease entered into in the ordinary course of business; 
  
 (4) encumbrances or restrictions existing under agreements existing on the date of this Indenture (including, without limitation, the
Credit Facilities) as in effect on that date; 
  
 (5) restrictions relating to any Lien permitted under this Indenture imposed by the holder of such Lien; 
  
 (6) restrictions imposed under any agreement to sell assets permitted under this Indenture to any Person pending the closing of such sale;

  
 (7) any instrument governing Acquired
Indebtedness, which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person or the properties or assets of the Person so acquired; 
  

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 (8) any other agreement governing Indebtedness entered into after the Issue Date that
contains encumbrances and restrictions that are not materially more restrictive with respect to any Restricted Subsidiary (x) than those in effect on the Issue Date with respect to that Restricted Subsidiary pursuant to agreements in effect on the
Issue Date and (y) with respect to any Indebtedness incurred pursuant to clause (13) of the definition of Permitted Indebtedness, than those imposed pursuant to the Credit Agreement as in effect on the Issue Date (which may result in encumbrances
upon a Restricted Subsidiary so long as such encumbrances or restrictions are not materially more restrictive taken as a whole than the comparable restriction that is applicable to the Issuer); 
  
 (9) customary provisions in partnership agreements, limited
liability company organizational governance documents, joint venture agreements and other similar agreements entered into in the ordinary course of business that restrict the transfer of ownership interests in such partnership, limited liability
company, joint venture or similar Person; 
  
 (10) Purchase Money Indebtedness incurred in compliance with Section 4.10 that impose restrictions of the nature described in clause (c) above on the assets acquired; 
  
 (11) restrictions on cash or other deposits or net worth imposed by suppliers or landlords under contracts
entered into in the ordinary course of business; 
  
 (12) encumbrances or restrictions contained in Indebtedness of Foreign Subsidiaries permitted to be incurred under this Indenture; provided that any such encumbrances or restrictions are ordinary and customary with respect to the
type of Indebtedness being incurred under the relevant circumstances and do not, in the good faith judgment of the Board of Directors of the Issuer, materially impair the Issuer’s ability to make payment on the Notes when due; and 

 
 (13) any encumbrances or restrictions imposed by any
amendments or refinancings of the contracts, instruments or obligations referred to in clauses (1) through (12) above; provided that such amendments or refinancings are, in the good faith judgment of the Issuer’s Board of Directors, no
more materially restrictive with respect to such encumbrances and restrictions than those prior to such amendment or refinancing. 
  
 SECTION 4.16. Additional Note Guarantees. 
  
 (a) If, after the Issue Date, (a) any Subsidiary (including any newly formed, or newly acquired Subsidiary) guarantees any Indebtedness
under any Credit Facility (other than any Subsidiary designated an Unrestricted Subsidiary and other than any Foreign Subsidiary that guarantees Indebtedness of only other Foreign Subsidiaries under any such Credit Facility) or (b) the Issuer
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then, in each such case, the Issuer shall promptly (and in any event within 30 days thereafter) cause such Restricted Subsidiary to: 
  
 (1) execute and deliver to the Trustee (a) a supplemental
indenture in form and substance satisfactory to the Trustee pursuant to which such Restricted Subsidiary shall unconditionally guarantee all of the Issuer’s obligations under the Notes and this Indenture and (b) a notation of guarantee in
respect of its Note Guarantee; and 
  
 (2)
deliver to the Trustee one or more opinions of counsel that such supplemental indenture (a) has been duly authorized, executed and delivered by such Restricted Subsidiary and (b) constitutes a valid and legally binding obligation of such Restricted
Subsidiary in accordance with its terms. 
  
 Thereafter, such Subsidiary or
Restricted Subsidiary, as applicable, shall be a Guarantor for all purposes of this Indenture. 
  
 (b) Notwithstanding Section 4.16(a), a Subsidiary Guarantor will be automatically and unconditionally released and discharged from its
obligations under its Note Guarantee, this Indenture and the Registration Rights Agreement under the circumstances set forth in Section 11.05. The form of the Note Guarantee is attached hereto as Exhibit F. 
  
 SECTION 4.17. Limitations on Layering Indebtedness. 
  
 The Issuer will not, and will not permit any Restricted Subsidiary to,
directly or indirectly, incur or suffer to exist any Indebtedness that is or purports to be by its terms (or by the terms of any agreement governing such Indebtedness) senior in right of payment to the Notes or the Note Guarantee of such Restricted
Subsidiary and subordinated in right of payment to any other Indebtedness of the Issuer or of such Restricted Subsidiary, as the case may be. 
  
 For purposes of the foregoing, no Indebtedness will be deemed to be subordinated in right of payment to any other Indebtedness of the Issuer or any
Restricted Subsidiary solely by virtue of being unsecured or secured by a junior priority lien or by virtue of the fact that the holders of such Indebtedness have entered into intercreditor agreements or other arrangements giving one or more of such
holders priority over the other holders in the collateral held by them. 
  
 SECTION 4.18. Reports to Holders. 
  
 Whether or
not required by the SEC, so long as any Notes are outstanding, the Issuer will furnish to the Holders of Notes, or file electronically with the SEC through the SEC’s Electronic Data Gathering, Analysis and Retrieval System (or any successor
system), within the time periods that would be applicable to the Issuer if it were subject to Section 13(a) or 15(d) of the Exchange Act: 
  
 (1) all quarterly and annual financial information that would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K
if the Issuer were required to file these Forms, including a “Management’s Discussion and Analysis of Financial Condition 

  

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and Results of Operations” and, with respect to the annual information only, a report on the annual financial statements by the Issuer’s certified
independent accountants; and 
  
 (2) all current
reports that would be required to be filed with the SEC on Form 8-K if the Issuer were required to file these reports. 
  
 In addition, following the consummation of the Exchange Offer, whether or not required by the SEC, the Issuer will file a copy of all of the information
and reports referred to in clauses (1) and (2) above with the SEC for public availability within the time periods specified in the SEC’s rules and regulations (unless the SEC will not accept the filing) and make the information available to
securities analysts and prospective investors upon request. The Issuer and the Guarantors have agreed that, for so long as any Notes remain outstanding, the Issuer will furnish to the Holders and to securities analysts and prospective investors,
upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act 
  
 Notwithstanding anything to the contrary, the Issuer will be deemed to have complied with its obligations in the preceding two paragraphs following the
filing of the Exchange Offer Registration Statement and prior to the effectiveness thereof if the Exchange Offer Registration Statement includes the information specified in clause (1) above at the times it would otherwise be required to file such
Forms. 
  
 In addition, the Issuer shall use its reasonable best
efforts to (1) issue a quarterly public press release detailing summary financial performance for each fiscal quarter and (2) participate in quarterly conference calls to discuss the results of operations for each such fiscal quarter with Holders,
in each case prior to the time financial statements for such fiscal quarter or fiscal year end, as the case may be, are required to be filed with the SEC. 
  

	SECTION	4.19. Limitations on Designation of Unrestricted Subsidiaries. 

  
 (a) The Issuer may designate any Subsidiary (including any newly formed or newly acquired Subsidiary) of the Issuer as an
“Unrestricted Subsidiary” under this Indenture (a “Designation”) only if: 
  
 (1) no Default shall have occurred and be continuing at the time of or after giving effect to such Designation; and 
  
 (2) the Issuer would be permitted to make, at the time of
such Designation, (a) a Permitted Investment or (b) an Investment pursuant to the first paragraph of Section 4.11 above, in either case, in an amount (the “Designation Amount”) equal to the Fair Market Value of the
Issuer’s proportionate interest in such Subsidiary on such date. 
  
 (b) No Subsidiary shall be Designated as an “Unrestricted Subsidiary” unless such Subsidiary: 
  
 (1) has no Indebtedness other than Non-Recourse Debt; 
  

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 (2) is not party to any agreement, contract, arrangement or understanding with the Issuer
or any Restricted Subsidiary unless the terms of the agreement, contract, arrangement or understanding are no less favorable to the Issuer or the Restricted Subsidiary than those that might be obtained at the time from Persons who are not
Affiliates; 
  
 (3) is a Person with respect to
which neither the Issuer nor any Restricted Subsidiary has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve the Person’s financial condition or to cause the Person to achieve any
specified levels of operating results; and 
  
 (4) has not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Issuer or any Restricted Subsidiary, except for any guarantee given solely to support the pledge by the Issuer or any Restricted
Subsidiary of the Equity Interests of such Unrestricted Subsidiary, which guarantee is not recourse to the Issuer or any Restricted Subsidiary. 
  
 (c) If, at any time, any Unrestricted Subsidiary fails to meet the preceding requirements as an Unrestricted Subsidiary, it shall
thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of the Subsidiary and any Liens on assets of such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary at such time and, if the
Indebtedness is not permitted to be incurred under Section 4.10 or the Lien is not permitted under Section 4.12, the Issuer shall be in default of the applicable Section. 
  
 (d) The Issuer may redesignate an Unrestricted Subsidiary as a Restricted Subsidiary (a
“Redesignation”) only if: 
  
 (1) no Default shall have occurred and be continuing at the time of and after giving effect to such Redesignation; and 
  
 (2) all Liens, Indebtedness and Investments of such Unrestricted Subsidiary outstanding immediately following such Redesignation would, if
incurred or made at such time, have been permitted to be incurred or made for all purposes of this Indenture. 
  
 (e) All Designations and Redesignations must be evidenced by resolutions of the Board of Directors of the Issuer, delivered to the Trustee
certifying compliance with the foregoing provisions. 
  
 SECTION 4.20. Conduct
of Business. 
  
 The Issuer will not, and will not permit any
Restricted Subsidiary to, engage in any business other than the Permitted Business. 
  

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 SECTION 4.21. Limitation on Preferred Stock of Non-Guarantor Restricted Subsidiaries. 
  
 The Issuer will not permit any Restricted Subsidiary that is not a Guarantor
to issue any Preferred Stock (except to the Issuer or to a Wholly-Owned Restricted Subsidiary) or permit any Person (other than the Company or a Wholly-Owned Restricted Subsidiary) to hold any such Preferred Stock. 
  
 ARTICLE FIVE 
  
 SUCCESSOR CORPORATION 
  
 SECTION 5.01. Mergers, Consolidations, Etc. 
  
 (a) The Issuer will not, directly or indirectly, in a single transaction or a series of related transactions, (a) consolidate or merge
with or into another Person (other than a merger with an Affiliate solely for the purpose of and with the effect of changing the Issuer’s jurisdiction of incorporation to another State of the United States), or sell, lease, transfer, convey or
otherwise dispose of or assign all or substantially all of the assets of the Issuer or the Issuer and the Restricted Subsidiaries (taken as a whole) or (b) adopt a Plan of Liquidation unless, in either case: 
  
 (1) either: 
  
 (a) the Issuer will be the surviving or continuing Person;
or 
  
 (b) the Person formed by or surviving
such consolidation or merger or to which such sale, lease, conveyance or other disposition shall be made (or, in the case of a Plan of Liquidation, any Person to which assets are transferred) (collectively, the “Successor”)
is a corporation, limited liability company or limited partnership organized and existing under the laws of any State of the United States of America or the District of Columbia, and the Successor expressly assumes, by agreements in form and
substance reasonably satisfactory to the Trustee, all of the obligations of the Issuer under the Notes, this Indenture and the Registration Rights Agreement; provided that if the Person is a partnership or limited liability company, a
corporation wholly owned by such Person organized or existing under the laws of the United States of America, any state of the United States of America or the District of Columbia that does not and will not have any material assets or operations
becomes a co-issuer of the notes pursuant to a supplemental indenture substantially in the form set forth in this Indenture; 
  
 (2) immediately prior to and immediately after giving effect to such transaction and the assumption of the obligations as set forth in
clause (1)(b) above and the incurrence of any Indebtedness to be incurred in connection therewith, and the use of any net proceeds therefrom on a pro forma basis, no Default shall have occurred and be continuing; and 
  

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 (3) immediately after and giving effect to such transaction and the assumption of the
obligations set forth in clause (1)(b) above and the incurrence of any Indebtedness to be incurred in connection therewith, and the use of any net proceeds therefrom on a pro forma basis, the Issuer or the Successor, as the case may be, could incur
$1.00 of additional Indebtedness pursuant to the Coverage Ratio Exception. 
  
 For
purposes of this Section 5.01(a), any Indebtedness of the Successor which was not Indebtedness of the Issuer immediately prior to the transaction shall be deemed to have been incurred in connection with such transaction. 
  
 (b) Except as provided in Section 11.05, no Guarantor may
consolidate with or merge with or into (whether or not such Guarantor is the surviving Person) another Person, unless: 
  
 (1) either: 
  
 (a) such Guarantor will be the surviving or continuing Person; or 
  
 (b) the Person formed by or surviving any such consolidation or merger is another Guarantor or assumes, by
agreements in form and substance reasonably satisfactory to the Trustee, all of the obligations of such Guarantor under the Note Guarantee of such Guarantor, this Indenture and the Registration Rights Agreement; or 
  
 (c) in connection with the sale or disposition of a
Guarantor by means of a merger, the net proceeds of such sale or other disposition are applied in accordance with the applicable provisions of this Indenture; and 
  
 (2) immediately after giving effect to such transaction, no Default shall have occurred and be continuing.

  
 (c) For purposes of the foregoing, the
transfer (by lease, assignment, sale or otherwise, in a single transaction or series of transactions) of all or substantially all of the properties or assets of one or more Restricted Subsidiaries, the Equity Interests of which constitute all or
substantially all of the properties and assets of the Issuer, will be deemed to be the transfer of all or substantially all of the properties and assets of the Issuer. 
  
 (d) Notwithstanding the foregoing, any Restricted Subsidiary may consolidate with, merge with or into or
convey, transfer or lease, in one transaction or a series of transactions, all or substantially all of its assets to the Issuer or another Restricted Subsidiary. This Section 5.01 shall not apply to the merger in connection with the Transactions.

  
 (e) Upon the execution and delivery by the
Company to the Trustee of a supplemental indenture substantially in the form of Exhibit A to the Registration Rights Agreement and compliance with the provisions of Section 9.07 hereof, pursuant to which the Company assumes the Issuer’s
obligations under this Indenture and the Notes, the Company 

  

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shall be the successor to the Issuer under this Indenture and the Notes and shall succeed to, and be substituted for, and may exercise every right and power
of, the Issuer hereunder and thereunder and the Issuer shall be discharged from all obligations and covenants under this Indenture and the Notes. 
  
 SECTION 5.02. Successor Corporation Substituted. 
  
 Upon any consolidation, combination or merger of the Issuer or a Guarantor, or any transfer of all or substantially all of the assets of the Issuer in
accordance with the foregoing, in which the Issuer or such Guarantor is not the continuing obligor under the Notes or its Note Guarantee, the surviving entity formed by such consolidation or into which the Issuer or such Guarantor is merged or the
Person to which the conveyance, lease or transfer is made will succeed to, and be substituted for, and may exercise every right and power of, the Issuer or such Guarantor under this Indenture, the Notes and the Note Guarantees with the same effect
as if such surviving entity had been named therein as the Issuer or such Guarantor and, except in the case of a lease, the Issuer or such Guarantor, as the case may be, will be released from the obligation to pay the principal of and interest on the
Notes or in respect of its Note Guarantee, as the case may be, and all of the Issuer’s or such Guarantor’s other obligations and covenants under the Notes, this Indenture and its Note Guarantee, if applicable. 
  
 ARTICLE SIX 
  
 DEFAULT AND REMEDIES 
  

	SECTION	6.01. Events of Default. 

  
 Each of the following is an “Event of Default”: 
  
 (1) failure by the Issuer to pay interest on any of the Notes when it becomes due and payable and the
continuance of any such failure for 30 days (whether or not such payment is prohibited by the subordination provisions of this Indenture); 
  
 (2) failure by the Issuer to pay the principal on any of the Notes when it becomes due and payable, whether at Stated Maturity, upon
redemption, upon purchase, upon acceleration or otherwise (whether or not such payment is prohibited by the subordination provisions of this Indenture); 
  
 (3) failure by the Issuer to comply with Section 5.01 or in respect of its obligations to make a Change of Control Offer as described
under Section 4.09 (whether or not such compliance is prohibited by the subordination provisions of this Indenture); 
  
 (4) failure by the Issuer to comply with any other agreement or covenant in this Indenture and continuance of this failure for 60 days
after notice of the failure has been given to the Issuer by the Trustee or by the Holders of at least 25% of the aggregate principal amount of the Notes then outstanding; 
  

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 (5) default under any mortgage, indenture or other instrument or agreement under which
there may be issued or by which there may be secured or evidenced Indebtedness of the Issuer or any Restricted Subsidiary, whether such Indebtedness now exists or is incurred after the Issue Date, which default: 
  
 (a) is caused by a failure to pay at final maturity
principal on such Indebtedness within the applicable express grace period and any extensions thereof, 
  
 (b) results in the acceleration of such Indebtedness prior to its express final maturity or 
  
 (c) results in the commencement of judicial proceedings to
foreclose upon, or to exercise remedies under applicable law or applicable security documents to take ownership of, the assets securing such Indebtedness, and 
  

in each case, the principal amount of such Indebtedness, together with any other Indebtedness with respect to which an event described in clause (a),
(b) or (c) has occurred and is continuing, aggregates $15.0 million or more; 
  
 (6) one or more judgments or orders that exceed $15.0 million in the aggregate (net of amounts covered by insurance or bonded) for the payment of money have been entered by a court or courts of competent jurisdiction
against the Issuer or any Restricted Subsidiary and such judgment or judgments have not been satisfied, stayed, annulled or rescinded within 60 days of such judgment becoming final and non-appealable; 
  
 (7) the Issuer or any Significant Subsidiary pursuant to or
within the meaning of any Bankruptcy Law: 
  
 (a)
commences a voluntary case, 
  
 (b) consents to
the entry of an order for relief against it in an involuntary case, 
  
 (c) consents to the appointment of a Custodian of it or for all or substantially all of its assets, or 
  
 (d) makes a general assignment for the benefit of its creditors; 
  
 (8) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

 
 (a) is for relief against the Issuer or any Significant
Subsidiary as debtor in an involuntary case, 
  
 (b) appoints a Custodian of the Issuer or any Significant Subsidiary or a Custodian for all or substantially all of the assets of the Issuer or any Significant Subsidiary, or 
  

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 (c) orders the liquidation of the Issuer or any Significant Subsidiary, 
  
 and the order or decree remains unstayed and in effect for 60 days; or

  
 (9) any Note Guarantee of any Significant
Subsidiary ceases to be in full force and effect (other than in accordance with the terms of such Note Guarantee and this Indenture) or is declared null and void and unenforceable or found to be invalid or any Guarantor denies its liability under
its Note Guarantee (other than by reason of release of a Guarantor from its Note Guarantee in accordance with the terms of this Indenture and the Note Guarantee). 
  
 SECTION 6.02. Acceleration. 
  
 (a) If an Event of Default specified in clause (7) or (8) of Section 6.01 with respect to the Issuer occurs, all outstanding Notes shall
become due and payable without any further action or notice. If an Event of Default (other than an Event of Default specified in clause (7) or (8) of Section 6.01 with respect to the Issuer) shall have occurred and be continuing under this
Indenture, the Trustee, by written notice to the Issuer, or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, by written notice to the Issuer and the Trustee, may declare (an “acceleration
declaration”) all amounts owing under the Notes to be due and payable. Upon such declaration of acceleration, the aggregate principal of and accrued and unpaid interest on the outstanding Notes shall become due and payable (a) if there is
no Indebtedness outstanding under any Credit Facility at such time, immediately and (b) if otherwise, upon the earlier of (x) the final maturity (after giving effect to any applicable grace period or extensions thereof) or an acceleration of any
Indebtedness under any Credit Facility prior to the express final Stated Maturity thereof and (y) five business days after the Representative under each Credit Facility receives the acceleration declaration, but, in the case of this clause (b) only,
if such Event of Default is then continuing; provided, however, that after such acceleration, but before a judgment or decree based on acceleration, the Holders of a majority in aggregate principal amount of such outstanding Notes may
rescind and annul such acceleration: 
  
 (1) if
the rescission would not conflict with any judgment or decree; 
  
 (2) if all existing Defaults have been cured or waived except nonpayment of principal and interest that has become due solely because of this acceleration; 
  
 (3) to the extent the payment of such interest is lawful,
interest on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid; 
  
 (4) if the Issuer has paid to the Trustee its reasonable compensation and reimbursed the Trustee of its expenses, disbursements and
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 (5) in the event of a cure or waiver of an Event of Default of the type set forth in
Section 6.01(7) or (8), the Trustee shall have received an Officers’ Certificate and an Opinion of Counsel that such an Event of Default has been cured or waived. 
  
 No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
  
 (b) The Issuer shall provide prompt written notice to the
holders of Senior Debt and Guarantor Senior Debt of any acceleration pursuant to Section 6.02(a). 
  
 SECTION 6.03. Other Remedies. 
  
 If a Default occurs and is continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of principal of, or interest on, the Notes or to enforce the performance of any provision of the
Notes or this Indenture. 
  
 The Trustee may maintain a proceeding
even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon a Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Default. No remedy is exclusive of any other remedy. All available remedies are cumulative to the extent permitted by law. 
  
 SECTION 6.04. Waiver of Past Defaults. 
  
 Subject to Sections 2.09, 6.07 and 9.02, the Holders of a majority in principal amount of the outstanding Notes (which may include consents obtained in
connection with a tender offer or exchange offer of Notes) by notice to the Trustee may waive an existing Default and its consequences, except a Default in the payment of principal of, or interest on, any Note as specified in Section 6.01(1) or (2).
The Issuer shall deliver to the Trustee an Officers’ Certificate stating that the requisite percentage of Holders have consented to such waiver and attaching copies of such consents. When a Default is waived, it is cured and ceases. 

 
 SECTION 6.05. Control by Majority. 
  
 The Holders of not less than a majority in principal amount of the
outstanding Notes may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it. Subject to Section 7.01, however, the Trustee may refuse to follow any
direction that conflicts with any law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of another Holder, or that may involve the Trustee in personal liability; provided that the Trustee may take any
other action deemed proper by the Trustee which is not inconsistent with such direction. 
  
 In the event the Trustee takes any action or follows any direction pursuant to this Indenture, the Trustee shall be entitled to indemnification against any loss or expense caused by taking such action or following
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 SECTION 6.06. Limitation on Suits. 
  
 No Holder will have any right to institute any proceeding with respect to this Indenture or for any remedy thereunder,
unless the Trustee: 
  
 (1) has failed to act for
a period of 60 days after receiving written notice of a continuing Event of Default by such Holder and a request to act by Holders of at least 25% in aggregate principal amount of Notes outstanding; 
  
 (2) has been offered indemnity satisfactory to it in its
reasonable judgment; and 
  
 (3) has not received
from the Holders of a majority in aggregate principal amount of the outstanding Notes a direction inconsistent with such request. 
  
 However, such limitations do not apply to a suit instituted by a Holder of any Note for enforcement of payment of the principal of or interest on such Note on or after
the due date therefor (after giving effect to the grace period specified in Section 6.01(1)). 
  
 A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over such other Holder. 
  
 SECTION 6.07. Rights of Holders To Receive Payment. 
  
 Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of principal of, and
interest on, a Note, on or after the respective due dates therefor, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of the Holder. 
  
 SECTION 6.08. Collection Suit by Trustee. 
  
 If a Default in payment of principal or interest specified in Section 6.01(1)
or (2) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Issuer or any other obligor on the Notes for the whole amount of principal and accrued interest and fees remaining
unpaid, together with interest on overdue principal and, to the extent that payment of such interest is lawful, interest on overdue installments of interest, in each case at the rate per annum borne by the Notes and such further amount as
shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  
 SECTION 6.09. Trustee May File Proofs of Claim. 
  
 The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee (including any claim for the compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings relating to the Issuer, their creditors or their

  

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property and shall be entitled and empowered to collect and receive any monies or other property payable or deliverable on any such claims and to distribute
the same, and any Custodian in any such judicial proceedings is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agent and counsel, and any other amounts due the Trustee under Section 7.07. Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding. The Trustee shall be entitled to participate as a member of any official committee of creditors in the matters as it deems necessary or advisable. 
  
 SECTION 6.10. Priorities. 
  
 If the Trustee collects any money or property pursuant to this Article Six,
it shall pay out the money or property in the following order: 
  
 First: to the Trustee for amounts due under Section 7.07; 
  
 Second: to Holders for interest accrued on the Notes, ratably, without preference or priority of any kind, according to the amounts due
and payable on the Notes for interest; 
  
 Third:
to Holders for principal amounts due and unpaid on the Notes, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal; and 
  
 Fourth: to the Issuer or, if applicable, the Guarantors, as
their respective interests may appear. 
  
 The Trustee, upon prior
notice to the Issuer, may fix a record date and payment date for any payment to Holders pursuant to this Section 6.10. 
  
 SECTION 6.11. Undertaking for Costs. 
  
 In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section
6.07, or a suit by a Holder or Holders of more than 10% in principal amount of the outstanding Notes. 
  

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 ARTICLE SEVEN 
  
 TRUSTEE 
  
 SECTION 7.01. Duties of Trustee. 
  
 (a) If a Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person
would exercise or use under the circumstances in the conduct of his or her own affairs. 
  
 (b) Except during the continuance of a Default: 
  

(1) The Trustee need perform only those duties as are specifically set forth herein or in the Trust Indenture Act and no duties,
covenants, responsibilities or obligations shall be implied in this Indenture against the Trustee. 
  
 (2) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates (including Officers’ Certificates) or opinions (including Opinions of Counsel) furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of any such
certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture.

  
 (c) Notwithstanding anything to the contrary
herein, the Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 
  
 (1) This paragraph does not limit the effect of Section 7.01(b). 
  
 (2) The Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts. 
  
 (3) The Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.05. 
  
 (d)
No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or to take or omit to take any action under this Indenture or take
any action at the request or direction of Holders if it shall have reasonable grounds for believing that repayment of such funds is not assured to it. 
  

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 (e) Whether or not therein expressly so provided, every provision of this Indenture that
in any way relates to the Trustee is subject to this Section 7.01. 
  
 (f) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Issuer. Money held in trust by the Trustee need not be segregated from other funds
except to the extent required by law. 
  
 (g) In
the absence of bad faith, negligence or willful misconduct on the part of the Trustee, the Trustee shall not be responsible for the application of any money by any Paying Agent other than the Trustee. 
  
 SECTION 7.02. Rights of Trustee. 
  
 Subject to Section 7.01: 
  
 (a) The Trustee may rely conclusively on any resolution,
certificate (including any Officers’ Certificate), statement, instrument, opinion (including any Opinion of Counsel), notice, request, direction, consent, order, bond, debenture, or other paper or document believed by it to be genuine and to
have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document. 
  
 (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate and an Opinion of Counsel, which shall
conform to the provisions of Section 12.05. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. 
  
 (c) The Trustee may act through its attorneys and agents and
shall not be responsible for the misconduct or negligence of any agent (other than an agent who is an employee of the Trustee) appointed with due care. 
  
 (d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it reasonably believes to be authorized
or within its rights or powers under this Indenture. 
  
 (e) The Trustee may consult with counsel of its selection and the advice or opinion of such counsel as to matters of law shall be full and complete authorization and protection from liability in respect of any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel. 
  
 (f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order
or direction of any of the Holders pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which may be
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 (g) The Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate (including any Officers’ Certificate), statement, instrument, opinion (including any Opinion of Counsel), notice, request, direction, consent, order, bond, debenture, or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled, upon reasonable notice
to the Issuer, to examine the books, records, and premises of the Issuer, personally or by agent or attorney at the sole cost of the Issuer. 
  
 (h) The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

  
 (i) The permissive rights of the Trustee to
do things enumerated in this Indenture shall not be construed as duties. 
  
 (j) Except with respect to Section 4.01 and 4.06, the Trustee shall have no duty to inquire as to the performance of the Issuer with respect to the covenants contained in Article Four. In addition, the Trustee shall
not be deemed to have knowledge of an Event of Default except (i) any Default or Event of Default occurring pursuant to Sections 4.01, 6.01(1) or 6.01(2) or (ii) any Default or Event of Default of which the Trustee shall have received written
notification. 
  
 (k) The rights, privileges,
protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed to act hereunder. 
  
 SECTION 7.03. Individual Rights of
Trustee. 
  
 The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer, its Subsidiaries or its respective Affiliates with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee must comply with Sections 7.10 and 7.11. 
  
 SECTION 7.04.
Trustee’s Disclaimer. 
  
 The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be responsible for any statement of the
Issuer in this Indenture or any document issued in connection with the sale of Notes or any statement in the Notes other than the Trustee’s certificate of authentication. The Trustee makes no representations with respect to the effectiveness or
adequacy of this Indenture. 
  

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 SECTION 7.05. Notice of Default. 
  
 If a Default occurs and is continuing and the Trustee receives actual notice of such Default, the Trustee shall mail to each
Holder notice of the uncured Default within 30 days after such Default occurs. Except in the case of a Default in payment of principal of, or interest on, any Note, including an accelerated payment and the failure to make a payment on the Change of
Control Payment Date pursuant to a Change of Control Offer or the Net Proceeds Payment Date pursuant to a Net Proceeds Offer, or a Default in complying with the provisions of Article Five, the Trustee may withhold the notice if and so long as the
Board of Directors, the executive committee, or a trust committee of directors and/or Responsible Officers, of the Trustee in good faith determines that withholding the notice is in the interest of the Holders. 
  
 SECTION 7.06. Reports by Trustee to Holders. 
  
 Within 60 days after each May 15, beginning with May 15, 2005, the Trustee
shall, to the extent that any of the events described in Trust Indenture Act § 313(a) occurred within the previous twelve months, but not otherwise, mail to each Holder a brief report dated as of such date that complies with Trust Indenture Act
§ 313(a). The Trustee also shall comply with Trust Indenture Act §§ 313(b), 313(c) and 313(d). 
  
 A copy of each report at the time of its mailing to Holders shall be mailed to the Issuer and filed with the SEC and each securities exchange, if any, on
which the Notes are listed. 
  
 The Issuer shall notify the
Trustee if the Notes become listed on any securities exchange or of any delisting thereof and the Trustee shall comply with Trust Indenture Act § 313(d). 
  

SECTION 7.07. Compensation and Indemnity. 
  
 The Issuer shall pay to the Trustee from time to time such compensation as the Issuer and the Trustee shall from time to time agree in writing for its
services hereunder. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Issuer shall reimburse the Trustee upon request for all reasonable disbursements, expenses and advances
(including reasonable fees and expenses of counsel) incurred or made by it in addition to the compensation for its services, except any such disbursements, expenses and advances as may be attributable to the Trustee’s negligence, bad faith or
willful misconduct. Such expenses shall include the reasonable fees and expenses of the Trustee’s agents and counsel. 
  
 The Issuer shall indemnify each of the Trustee or any predecessor Trustee and its agents for, and hold them harmless against, any and all loss, damage,
claims including taxes (other than taxes based upon, measured by or determined by the income of the Trustee), liability or expense incurred by them except for such actions to the extent caused by any negligence, bad faith or willful misconduct on
their part, arising out of or in connection with the acceptance or administration of this trust including the reasonable costs and expenses of defending themselves against or investigating any claim or liability in connection with the exercise or
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any of the Trustee’s rights, powers or duties hereunder. The Trustee shall notify the Issuer promptly of any claim asserted against the Trustee or any
of its agents for which it may seek indemnity. The Issuer may, subject to the approval of the Trustee (which approval shall not be unreasonably withheld), defend the claim and the Trustee shall cooperate in the defense. The Trustee and its agents
subject to the claim may have separate counsel and the Issuer shall pay the reasonable fees and expenses of such counsel; provided, however, that the Issuer will not be required to pay such fees and expenses if, subject to the approval
of the Trustee (which approval shall not be unreasonably withheld), it assumes the Trustee’s defense and there is no conflict of interest between the Issuer and the Trustee and its agents subject to the claim in connection with such defense as
reasonably determined by the Trustee. The Issuer need not pay for any settlement made without its written consent. The Issuer need not reimburse any expense or indemnify against any loss or liability to the extent incurred by the Trustee through its
negligence, bad faith or willful misconduct. 
  
 To secure the
Issuer’s payment obligations in this Section 7.07, the Trustee shall have a Lien prior to the Notes against all money or property held or collected by the Trustee, in its capacity as Trustee, except money or property held in trust to pay
principal and interest on particular Notes. The obligations of the Issuer and the Guarantors under this Section shall not be subordinated to the payment of Senior Debt pursuant to Article Ten or Section 11.02 except assets or money held in trust to
pay principal of or interest on particular Notes. 
  
 When the
Trustee incurs expenses or renders services after a Default specified in Section 6.01(7) or (8) occurs, such expenses and the compensation for such services shall be paid to the extent allowed under any Bankruptcy Law. 
  
 Notwithstanding any other provision in this Indenture, the foregoing
provisions of this Section 7.07 shall survive the satisfaction and discharge of this Indenture or the appointment of a successor Trustee. 
  
 SECTION 7.08. Replacement of Trustee. 
  
 The Trustee may resign at any time by so notifying the Issuer in writing. The Holders of a majority in principal amount of the outstanding Notes may
remove the Trustee by so notifying the Issuer and the Trustee and may appoint a successor Trustee. The Issuer may remove the Trustee if: 
  
 (1) the Trustee fails to comply with Section 7.10; 
  
 (2) the Trustee is adjudged a bankrupt or an insolvent; 
  
 (3) a receiver or other public officer takes charge of the
Trustee or its property; or 
  
 (4) the Trustee
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 If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the
Issuer shall notify each Holder of such event and shall promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the Notes may appoint a successor Trustee to
replace the successor Trustee appointed by the Issuer. 
  
 A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuer. Immediately after that, the retiring Trustee shall transfer, after payment of all sums then owing to the Trustee pursuant to Section
7.07, all property held by it as Trustee to the successor Trustee, subject to the Lien provided in Section 7.07, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers
and duties of the Trustee under this Indenture. A successor Trustee shall mail notice of its succession to each Holder. 
  
 If a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Issuer or the
Holders of at least 10% in principal amount of the outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee at the expense of the Issuer. 
  
 If the Trustee fails to comply with Section 7.10, any Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Issuer’s obligations under Section 7.07 shall continue for the benefit
of the retiring Trustee. 
  
 SECTION 7.09. Successor Trustee by Merger,
Etc. 
  
 If the Trustee consolidates with, merges or converts
into, or transfers all or substantially all of its corporate trust business to, another corporation, the resulting, surviving or transferee corporation without any further act shall, if such resulting, surviving or transferee corporation is
otherwise eligible hereunder, be the successor Trustee; provided that such corporation shall be otherwise qualified and eligible under this Article Seven. 
  
 SECTION 7.10. Eligibility; Disqualification. 
  

This Indenture shall always have a Trustee who satisfies the requirement of Trust Indenture Act §§ 310(a)(1), 310(a)(2) and 310(a)(5). The
Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with Trust Indenture Act § 310(b); provided, however, that
there shall be excluded from the operation of Trust Indenture Act § 310(b)(1) any indenture or indentures under which other securities, or certificates of interest or participation in other securities, of the Issuer are outstanding, if the
requirements for such exclusion set forth in Trust Indenture Act § 310(b)(1) are met. The provisions of Trust Indenture Act § 310 shall apply to the Issuer and any other obligor of the Notes. 
  

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 SECTION 7.11. Preferential Collection of Claims Against the Issuer. 
  
 The Trustee, in its capacity as Trustee hereunder, shall comply with Trust
Indenture Act § 311(a), excluding any creditor relationship listed in Trust Indenture Act § 311(b). A Trustee who has resigned or been removed shall be subject to Trust Indenture Act § 311(a) to the extent indicated. 
  
 ARTICLE EIGHT 
  
 DISCHARGE OF INDENTURE; DEFEASANCE 
  

SECTION 8.01. Termination of the Issuer’s Obligations. 
  
 The Issuer may terminate its obligations under the Notes and this Indenture and the obligations of the Guarantors under the Note Guarantees and this
Indenture and this Indenture shall cease to be of further effect, except those obligations referred to in the penultimate paragraph of this Section 8.01, if: 
  

(1) all the Notes that have been authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or paid
and Notes for whose payment money has been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or discharged from this trust) have been delivered to the Trustee for cancellation, or 
  
 (2) (a) all Notes not delivered to the Trustee for
cancellation otherwise have become due and payable, will become due and payable, or may be called for redemption, within one year or have been called for redemption pursuant to Section 5 or Section 6 of the Notes and the Issuer has irrevocably
deposited or caused to be deposited with the Trustee funds in trust sufficient to pay and discharge the entire Indebtedness (including all principal and accrued interest) on the Notes not theretofore delivered to the Trustee for cancellation,

  
 (b) the Issuer has paid all sums payable by
it under this Indenture, and 
  
 (c) the Issuer
has delivered irrevocable instructions to the Trustee to apply the deposited money toward the payment of the Notes at maturity or on the Redemption Date, as the case may be. 
  
 In addition, the Issuer must deliver an Officers’ Certificate and an Opinion of Counsel stating that all conditions
precedent to satisfaction and discharge have been complied with. 
  
 In the case of clause (2) of this Section 8.01, and subject to the next sentence and notwithstanding the foregoing paragraph, the Issuer’s obligations in Sections 2.05, 2.06, 2.07, 2.08, 4.01, 4.02, 4.03 (as to legal existence of the
Issuer only), 7.07, 8.05 and 8.06 shall survive until the Notes are no longer outstanding pursuant to the last paragraph of Section 2.08. After 

  

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the Notes are no longer outstanding, the Issuer’s obligations in Sections 7.07, 8.05 and 8.06 shall survive. 
  
 After such delivery or irrevocable deposit, the Trustee upon request shall
acknowledge in writing the discharge of the Issuer’s obligations under the Notes and this Indenture except for those surviving obligations specified above. 
  

SECTION 8.02. Legal Defeasance and Covenant Defeasance. 
  
 (a) The Issuer may, at its option and at any time, elect to have either paragraph (b) or (c) below be applied to all outstanding Notes
upon compliance with the conditions set forth in Section 8.03. 
  
 (b) Upon the Issuer’s exercise under Section 8.02(a) hereof of the option applicable to this Section 8.02(b), the Issuer and the Guarantors shall, subject to the satisfaction of the conditions set forth in
Section 8.03, be deemed to have been discharged from their obligations with respect to all outstanding Notes on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal
Defeasance means that the Issuer and the Guarantors shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes and the Note Guarantees, which shall thereafter be deemed to be “outstanding” only
for the purposes of Section 8.04 hereof and the other Sections of this Indenture referred to in (i) and (ii) below, and to have satisfied all its other obligations under such Notes and this Indenture and the Guarantors shall be deemed to have
satisfied all of their obligations under the Note Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging the same), except for the following provisions which
shall survive until otherwise terminated or discharged hereunder: 
  
 (i) the rights of Holders of outstanding Notes to receive, solely from the trust fund described in Section 8.04 hereof, and as more fully set forth in such Section 8.04, payments in respect of the principal of,
premium, if any, and interest on such Notes when such payments are due; 
  
 (ii) the Issuer’s obligations with respect to such Notes under Article Two and Section 4.02 hereof; 
  
 (iii) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Issuer’s obligations in connection
therewith; and 
  
 (iv) the provisions of this
Article Eight applicable to Legal Defeasance. 
  
 Subject to
compliance with this Article Eight, the Issuer may exercise its option under this Section 8.02(b) notwithstanding the prior exercise of its option under Section 8.02(c) hereof. 
  

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 (c) Upon the Issuer’s exercise under paragraph (a) hereof of the option applicable
to this paragraph (c), the Issuer and the Guarantors shall, subject to the satisfaction of the conditions set forth in Section 8.03 hereof, be released from their respective obligations under the covenants contained in Sections 4.03 (other than with
respect to the legal existence of the Issuer), 4.04, 4.05, 4.07 and 4.09 through 4.21, clause (3) of Section 5.01(a) and Article Eleven hereof with respect to the outstanding Notes on and after the date the conditions set forth in Section 8.03 are
satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any
thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes). For this purpose,
Covenant Defeasance means that, with respect to the outstanding Notes, the Issuer and the Guarantors may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly
or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute an Event of
Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the Issuer’s exercise under paragraph (a) hereof of the option applicable to this
paragraph (c), subject to the satisfaction of the conditions set forth in Section 8.03 hereof, clauses (3), (4), (5), (6) and (9) of Section 6.01 hereof shall not constitute Events of Default. 
  
 SECTION 8.03. Conditions to Legal Defeasance or Covenant Defeasance. 
  
 The following shall be the conditions to the application of either Section
8.02(b) or 8.02(c) hereof to the outstanding Notes: 
  
 (1) the Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, U.S. Legal Tender, U.S. Government Obligations or a combination thereof, in such amounts as will be sufficient (without reinvestment) in the
opinion of a nationally recognized firm of independent public accountants selected by the Issuer, to pay the principal of and interest on the Notes on the stated date for payment or on the Redemption Date of the principal or installment of principal
of or interest on the Notes, 
  
 (2) in the case
of Legal Defeasance, the Issuer shall have delivered to the Trustee an Opinion of Counsel in the United States confirming that: 
  
 (a) the Issuer has received from, or there has been published by the Internal Revenue Service, a ruling, or 
  
 (b) since the date of this Indenture, there has been a
change in the applicable U.S. federal income tax law, 
  
 in
either case to the effect that, and based thereon this Opinion of Counsel shall confirm that, the Holders will not recognize income, gain or loss for U.S. federal income tax purposes 

  

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as a result of the Legal Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would
have been the case if such Legal Defeasance had not occurred, 
  
 (3) in the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that the Holders will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such Covenant Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if the
Covenant Defeasance had not occurred, 
  
 (4) no
Default shall have occurred and be continuing on the date of such deposit (other than a Default resulting from the borrowing of funds to be applied to such deposit), 
  
 (5) the Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute
a Default under this Indenture or a default under any other material agreement or instrument to which the Issuer or any of its Subsidiaries is a party or by which the Issuer or any of its Subsidiaries is bound (other than any such Default or default
resulting solely from the borrowing of funds to be applied to such deposit), 
  
 (6) the Issuer shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by it with the intent of preferring the Holders over any other of its creditors or with the intent
of defeating, hindering, delaying or defrauding any other of its creditors or others, and 
  
 (7) the Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that the
conditions provided for in, in the case of the Officers’ Certificate, clauses (1) through (6) and, in the case of the Opinion of Counsel, clauses (2) and/or (3) and (5) of this Section 8.03 have been complied with. 
  
 SECTION 8.04. Application of Trust Money. 
  
 The Trustee or Paying Agent shall hold in trust U.S. Legal Tender and U.S.
Government Obligations deposited with it pursuant to this Article Eight, and shall apply the deposited U.S. Legal Tender and the money from U.S. Government Obligations in accordance with this Indenture to the payment of the principal of and the
interest on the Notes. The Trustee shall be under no obligation to invest said U.S. Legal Tender and U.S. Government Obligations, except as it may agree with the Issuer. 
  
 The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S.
Legal Tender and U.S. Government Obligations deposited pursuant to Section 8.03 or the principal and interest received in respect thereof, other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding
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 Anything in this Article Eight to the contrary notwithstanding, the Trustee shall deliver or pay to the
Issuer from time to time upon the Issuer’s request any U.S. Legal Tender and U.S. Government Obligations held by it as provided in Section 8.03 which, in the opinion of a nationally recognized firm of independent public accountants expressed in
a written certification thereof delivered to the Trustee, are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 
  
 SECTION 8.05. Repayment to the Issuer. 
  
 The Trustee and the Paying Agent shall pay to the Issuer upon request any
money held by them for the payment of principal or interest that remains unclaimed for two years; provided that the Trustee or such Paying Agent, before being required to make any payment, may at the expense of the Issuer cause to be
published once in a newspaper of general circulation in the City of New York or mail to each Holder entitled to such money notice that such money remains unclaimed and that after a date specified therein which shall be at least 30 days from the date
of such publication or mailing any unclaimed balance of such money then remaining will be repaid to the Issuer. After payment to the Issuer, Holders entitled to such money must look to the Issuer for payment as general creditors unless an applicable
law designates another Person. 
  
 SECTION 8.06. Reinstatement. 

 
 If the Trustee or Paying Agent is unable to apply any U.S. Legal Tender
and U.S. Government Obligations in accordance with this Article Eight by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, or
if the funds deposited with the Trustee to effect Covenant Defeasance are insufficient to pay the principal of, and interest on, the Notes when due, the Issuer’s obligations under this Indenture, and the Notes shall be revived and reinstated as
though no deposit had occurred pursuant to this Article Eight until such time as the Trustee or Paying Agent is permitted to apply all such U.S. Legal Tender and U.S. Government Obligations in accordance with this Article Eight; provided that
if the Issuer has made any payment of interest on, or principal of, any Notes because of the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such Notes to receive such payment from the U.S. Legal
Tender and U.S. Government Obligations held by the Trustee or Paying Agent. 
  
 ARTICLE NINE 
  
 AMENDMENTS,
SUPPLEMENTS AND WAIVERS 
  
 SECTION 9.01. Without Consent of Holders.

  
 (a) Subject to Section 9.03, the Issuer and
the Trustee, together, may amend or supplement this Indenture, the Notes or the Note Guarantees without notice to or consent of any Holder: 
  
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 (2) to provide for uncertificated Notes in addition to or in place of certificated Notes;

  
 (3) to provide for the assumption of the
Issuer’s or a Guarantor’s obligations to the Holders in the case of a merger, consolidation or sale of all or substantially all of the assets, in accordance with Article Five; 
  
 (4) to release any Guarantor from any of its obligations under its Note Guarantee or this Indenture (to the
extent permitted by this Indenture); 
  
 (5) to
make any change that would not materially adversely affect the rights of any Holder; 
  
 (6) in the case of this Indenture, to comply with requirements of the SEC in order to effect or maintain the qualification of this
Indenture under the Trust Indenture Act; 
  
 (7)
to conform the text of this Indenture or the Notes to its description in the Offering Memorandum; or 
  
 (8) to provide for the issuance of Additional Notes in accordance with the provisions set forth herein. 
  
 provided that the Issuer has delivered to the Trustee an Opinion of Counsel and an
Officers’ Certificate, each stating that such amendment or supplement complies with the provisions of this Section 9.01. 
  
 SECTION 9.02. With Consent of Holders. 
  
 (a) Subject to Sections 6.07 and 9.03, the Issuer, the Guarantors and the Trustee, together, with the written consent (which may include
consents obtained in connection with a tender offer or exchange offer for Notes) of the Holder or Holders of at least a majority in aggregate principal amount of the Notes then outstanding, may amend or supplement this Indenture, the Notes or the
Note Guarantees, without notice to any other Holders. Subject to Sections 6.07 and 9.03, with the consent (which may include consents obtained in connection with a tender offer or exchange offer for Notes) of the Holder or Holders of a majority in
aggregate principal amount of the outstanding Notes, any existing Default under, or compliance with, any provision of this Indenture (other than any continuing Default in the payment of the principal or interest on the Notes), the Notes or the Note
Guarantees may be waived without notice to any other Holders; 
  
 (b) Notwithstanding Section 9.02(a), without the consent of each Holder affected, no amendment or waiver may: 
  
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 (2) reduce the rate of or extend the time for payment of interest on any Note;

  
 (3) reduce any premium payable upon optional
redemption of the Notes or change the date on which any Notes are subject to redemption (other than provisions of Section 4.09 and Section 4.13, except that if a Change of Control has occurred, no amendment or other modification of the obligation of
the Issuer to make a Change of Control Offer relating to such Change of Control shall be made without the consent of each Holder of the Notes affected); 
  
 (4) make any Note payable in money or currency other than that stated in the Notes; 
  
 (5) modify or change any provision of this Indenture or the
related definitions affecting the subordination of the Notes or any Note Guarantee in a manner that adversely affects the Holders; 
  
 (6) reduce the percentage of Holders necessary to consent to an amendment or waiver to this Indenture or the Notes; 
  
 (7) waive a default in the payment of principal of or
premium or interest on any Notes (except a rescission of acceleration of the Notes by the Holders thereof as provided in this Indenture and a waiver of the payment default that resulted from such acceleration); 
  
 (8) impair the rights of Holders to receive payments of
principal of or interest on the Notes on or after the due date therefore or to institute suit for the enforcement of any payment on the Notes; 
  
 (9) release any Guarantor that is a Significant Subsidiary from any of its obligations under its Note Guarantee or this Indenture, except
as permitted by this Indenture; or 
  
 (10) make
any change in this Section 9.02. 
  
 (c) It shall
not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed amendment, supplement or waiver but it shall be sufficient if such consent approves the substance thereof. 
  
 (d) A consent to any amendment, supplement or waiver under
this Indenture by any Holder given in connection with an exchange (in the case of an exchange offer) or a tender (in the case of a tender offer) of such Holder’s Notes will not be rendered invalid by such tender or exchange. 
  
 (e) After an amendment, supplement or waiver under this
Section 9.02 becomes effective, the Issuer shall mail to the Holders affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Issuer to mail such notice, or 

  

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any defect therein, shall not, however, in any way impair or affect the validity of any such amendment, supplement or waiver. 
  
 SECTION 9.03. Effect on Senior Debt. 
  
 No amendment of, or supplement or waiver to, this Indenture shall adversely
affect the rights of any holder of Senior Debt or Guarantor Senior Debt under Article Ten and Section 11.02 and the defined terms as used therein without the consent of such holder or its Representative or, in accordance with the terms of such
Senior Debt or Guarantor Senior Debt, the consent of the agent or representative of such holder or the requisite holders of such Senior Debt or Designated Senior Debt. 
  
 SECTION 9.04. Compliance with the Trust Indenture Act. 
  
 From the date on which this Indenture is qualified under the Trust Indenture Act, every amendment, waiver or supplement of
this Indenture, the Notes or the Note Guarantees shall comply with the Trust Indenture Act as then in effect. 
  
 SECTION 9.05. Revocation and Effect of Consents. 
  
 Until an amendment, waiver or supplement becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Note or portion of a Note that evidences the same debt as
the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder or subsequent Holder may revoke the consent as to his Note or portion of his Note by notice to the Trustee or the Issuer received
before the date on which the Trustee receives an Officers’ Certificate certifying that the Holders of the requisite principal amount of Notes have consented (and not theretofore revoked such consent) to the amendment, supplement or waiver.

  
 The Issuer may, but shall not be obligated to, fix a record
date for the purpose of determining the Holders entitled to consent to any amendment, supplement or waiver, which record date shall be at least 30 days prior to the first solicitation of such consent. If a record date is fixed, then notwithstanding
the last sentence of the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to revoke any consent previously given, whether or not such
Persons continue to be Holders after such record date. No such consent shall be valid or effective for more than 90 days after such record date. The Issuer shall inform the Trustee in writing of the fixed record date if applicable. 
  
 After an amendment, supplement or waiver becomes effective, it shall bind
every Holder, unless it makes a change described in any of clauses (1) through (10) of Section 9.02(b), in which case, the amendment, supplement or waiver shall bind only each Holder of a Note who has consented to it and every subsequent Holder of a
Note or portion of a Note that evidences the same debt as the consenting Holder’s Note; provided that any such waiver shall not impair or affect the right of any Holder to receive payment of principal of, and interest on, a Note, on or

  

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after the respective due dates therefor, or to bring suit for the enforcement of any such payment on or after such respective dates without the consent of
such Holder. 
  
 SECTION 9.06. Notation on or Exchange of Notes.

  
 If an amendment, supplement or waiver changes the terms of a
Note, the Issuer may require the Holder of the Note to deliver it to the Trustee. The Issuer shall provide the Trustee with an appropriate notation on the Note about the changed terms and cause the Trustee to return it to the Holder at the
Issuer’s expense. Alternatively, if the Issuer or the Trustee so determines, the Issuer in exchange for the Note shall issue, and the Trustee shall authenticate, a new Note that reflects the changed terms. Failure to make the appropriate
notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver. 
  
 SECTION 9.07. Trustee To Sign Amendments, Etc. 
  
 The Trustee shall execute any amendment, supplement or waiver authorized pursuant to this Article Nine; provided that the Trustee may, but shall not be obligated to, execute any such amendment, supplement or
waiver which affects the Trustee’s own rights, duties or immunities under this Indenture. The Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel and an Officers’ Certificate each
stating that the execution of any amendment, supplement or waiver authorized pursuant to this Article Nine is authorized or permitted by this Indenture and constitutes legal, valid and binding obligations of the Issuer enforceable in accordance with
its terms. Such Opinion of Counsel shall be at the expense of the Issuer. 
  
 ARTICLE TEN 
  
 SUBORDINATION OF
NOTES 
  
 SECTION 10.01. Notes Subordinated to Senior Debt. 
  
 Anything herein to the contrary notwithstanding, each of the Issuer, for
itself and its successors, and each Holder, by his or her acceptance of Notes, agrees that the payment of all Obligations owing to the Holders in respect of the Notes is subordinated, to the extent and in the manner provided in this Article Ten, to
the prior payment in full of all Senior Debt in cash or cash equivalents, whether outstanding on the Issue Date or thereafter incurred. Notwithstanding anything in this Article Ten to the contrary, payments and distributions (A) of Permitted Junior
Securities and (B) made relating to the Notes from the trust established pursuant to Article Eight shall not be so subordinated in right of payment, so long as, with respect to (B), (i) the conditions specified in Article Eight (without any waiver
or modification of the requirement that the deposits pursuant thereto do not conflict with the terms of the Credit Facilities or any other Senior Debt) are satisfied on the date of any deposit pursuant to said trust and (ii) such payments and
distributions did not violate the provisions of this Article Ten or Section 11.02 of this Indenture when made. 
  

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 This Article Ten shall constitute a continuing offer to all Persons who become holders of, or continue to
hold, Senior Debt, such provisions are made for the benefit of the holders of Senior Debt and such holders are made obligees hereunder and any one or more of them may enforce such provisions. 
  
 SECTION 10.02. Suspension of Payment When Senior Debt Is in Default. 
  
 (a) If any default occurs and is continuing in the payment
when due, whether at maturity, upon any redemption, by declaration or otherwise, of any principal of, interest on, unpaid drawings for letters of credit issued in respect of, or fees with respect to, any Senior Debt (a “Payment
Default”), then no payment or distribution of any kind or character shall be made by the Issuer with respect to any Obligations on or relating to the Notes or to acquire any of the Notes for cash or assets or otherwise until all such
Payment Defaults are cured or waived. 
  
 (b) If
any other event of default (other than a Payment Default) occurs and is continuing with respect to any Designated Senior Debt (as such event of default is defined in the instrument creating or evidencing such Designated Senior Debt) permitting the
holders of such Designated Senior Debt then outstanding to accelerate the maturity thereof (a “Non-Payment Default”) and if the Representative for the respective issue of Designated Senior Debt gives written notice of the
Non-Payment Default to the Trustee stating that such notice is a payment blockage notice (a “Payment Blockage Notice”), then during the period (the “Payment Blockage Period”) beginning upon the delivery of such
Payment Blockage Notice and ending on the earliest of (1) the date on which all such nonpayment defaults are cured or waived, (2) 179 days after the date on which the applicable Payment Blockage Notice is received or (3) the date on which the
Trustee receives notice from the Representative for such Designated Senior Debt rescinding the Payment Blockage Notice (unless the maturity of any Designated Senior Debt has been accelerated), the Issuer shall not (x) make any payment of any kind or
character with respect to any Obligations on or with respect to the Notes or (y) acquire any of the Notes for cash or assets or otherwise. Notwithstanding anything herein to the contrary, (x) in no event will a Payment Blockage Period extend beyond
179 days from the date the applicable Payment Blockage Notice is received by the Trustee and (y) no new Payment Blockage Notice may be delivered unless and until 360 days have elapsed since the effectiveness of the immediately prior Payment Blockage
Notice. For all purposes of this Section 10.02(b), no Non-Payment Default which existed or was continuing on the date of the commencement of any Payment Blockage Period with respect to the Designated Senior Debt shall be, or be made, the basis for
the commencement of a subsequent Payment Blockage Period by the Representative of such Designated Senior Debt whether or not within a period of 360 consecutive days, unless such Non-Payment Default shall have been cured or waived for a period of not
less than 90 consecutive days. Any subsequent action, or any breach of any financial covenants for a period ending after the date of delivery of such Payment Blockage Notice that, in either case, would give rise to a Non-Payment Default pursuant to
any provisions under which a Non-Payment Default previously existed or was continuing shall constitute a new Non-Payment Default for this purpose. 
  

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 (c) In the event that, notwithstanding the foregoing, any payment shall be received by
the Trustee or any Holder when such payment is prohibited by the foregoing provisions of this Section 10.02, such payment shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Debt (pro rata
to such holders on the basis of the respective amount of Senior Debt held by such holders) or their respective Representatives, as their respective interests may appear. The Trustee shall be entitled to rely on information regarding amounts
outstanding on the Senior Debt, if any, received from the holders of the Senior Debt (or their Representatives). 
  
 Nothing contained in this Article Ten shall limit the right of the Trustee or the Holders of the Notes to take any action to accelerate the maturity of
the Notes pursuant to Section 6.02 or to pursue any rights or remedies hereunder; provided that all Senior Debt thereafter due or declared to be due shall first be paid in full in cash or cash equivalents before the Holders are entitled to
receive any payment of any kind or character with respect to Obligations on the Notes. 
  
 SECTION 10.03. Notes Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation or Reorganization of the Issuer. 
  
 (a) Upon any payment or distribution of assets of the Issuer of any kind or character, whether in cash, assets or securities, to creditors
upon any total or partial liquidation, dissolution, winding-up, assignment for the benefit of creditors or marshaling of assets and liabilities of the Issuer or in a bankruptcy, reorganization, insolvency, receivership or other similar proceeding
relating to the Issuer or its assets, whether voluntary or involuntary, all Obligations due or to become due on all Senior Debt shall first be paid in full in cash or cash equivalents, or such payment duly provided for to the satisfaction of the
holders of Senior Debt, before any payment or distribution of any kind or character is made on account of any Obligations on or relating to the Notes, or for the acquisition of any of the Notes for cash or assets or otherwise. Upon any such
dissolution, winding-up, liquidation, reorganization, receivership or similar proceeding, any payment or distribution of assets of the Issuer of any kind or character, whether in cash, assets or securities, to which the Holders of the Notes or the
Trustee under this Indenture would be entitled, except for the provisions hereof, shall be paid by the Issuer or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the
Holders or by the Trustee under this Indenture if received by them, directly to the holders of Senior Debt (pro rata to such holders on the basis of the respective amounts of Senior Debt held by such holders) or their respective
Representatives, or to the trustee or trustees under any indenture pursuant to which any of such Senior Debt may have been issued, as their respective interests may appear, for application to the payment of Senior Debt remaining unpaid until all
such Senior Debt has been paid in full in cash or cash equivalents after giving effect to any concurrent payment, distribution or provision therefor to or for the holders of Senior Debt. 
  
 (b) To the extent any payment of Senior Debt (whether by or on behalf of the Issuer, as proceeds of security
or enforcement of any right of setoff or otherwise) is declared to be fraudulent or preferential, set aside or required to be paid to any receiver, trustee 

  

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in bankruptcy, liquidating trustee, agent or other similar Person under any bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then,
if such payment is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent or other similar Person, the Senior Debt or part thereof originally intended to be satisfied shall be for purpose of this Article Ten
deemed to be reinstated and outstanding as if such payment had not occurred. 
  
 It is further agreed that any diminution (whether pursuant to court decree or otherwise, including without limitation for any of the reasons described in the preceding sentence) of the Issuer’s obligation to make
any distribution or payment pursuant to any Senior Debt, except to the extent such diminution occurs by reason of the repayment (which has not been disgorged or returned) of such Senior Debt in cash or cash equivalents, shall have no force or effect
for purposes of the subordination provisions contained in this Article Ten, with any turnover of payments as otherwise calculated pursuant to this Article Ten to be made as if no such diminution had occurred. 
  
 (c) In the event that, notwithstanding the foregoing, any
payment or distribution of assets of the Issuer of any kind or character, whether in cash, assets or securities, shall be received by any Holder when such payment or distribution is prohibited by this Section 10.03, such payment or distribution
shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Debt (pro rata to such holders on the basis of the respective amount of Senior Debt held by such holders) or their respective
Representatives, or to the trustee or trustees under any indenture pursuant to which any of such Senior Debt may have been issued, as their respective interests may appear, for application to the payment of Senior Debt remaining unpaid until all
such Senior Debt has been paid in full in cash or cash equivalents, after giving effect to any concurrent payment, distribution or provision therefor to or for the holders of such Senior Debt. 
  
 (d) The consolidation of the Issuer with, or the merger of
the Issuer with or into, another Person or the liquidation or dissolution of the Issuer following the conveyance or transfer of all or substantially all of its assets, to another Person upon the terms and conditions provided in Article Five hereof
shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section if such other Person shall, as a part of such consolidation, merger, conveyance or transfer, assume the Issuer’s obligations hereunder
in accordance with Article Five hereof. 
  
 SECTION 10.04. Payments May Be Made
on Notes. 
  
 Nothing contained in this Article Ten or
elsewhere in this Indenture shall prevent (i) the Issuer, except under the conditions described in Sections 10.02 and 10.03, from making payments at any time for the purpose of making payments of principal of, and interest on, the Notes, or from
depositing with the Trustee any moneys for such payments, or (ii) in the absence of actual knowledge by the Trustee that a given payment would be prohibited by Section 10.02 or 10.03, the application by the Trustee of any moneys deposited with it
for the purpose of making such payments of principal of, and interest on, the Notes to the Holders entitled thereto unless at least two Business Days prior to the date upon which such payment would otherwise 

  

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become due and payable a Responsible Officer of the Trustee shall have actually received the written notice provided for in the first sentence of Section
10.02(b) or in Section 10.07 (provided that, notwithstanding the foregoing, the Holders receiving any payments made in contravention of Section 10.02 and/or 10.03 (and the respective such payments) shall otherwise be subject to the provisions
of Section 10.02 and Section 10.03). Notwithstanding anything to the contrary contained in this Article Ten or elsewhere in this Indenture, payments and distributions from the funds deposited pursuant to Article Eight will be permitted to be made
and will not be subject to the provisions of this Article Ten so long as such funds were deposited in accordance with the provisions of Article Eight and did not violate the provisions of this Article Ten when such funds were so deposited. The
Issuer shall give prompt written notice to the Trustee of any dissolution, winding-up, liquidation or reorganization of the Issuer, although any delay or failure to give any such notice shall have no effect on the subordination provisions contained
herein. 
  
 SECTION 10.05. Holders To Be Subrogated to Rights of Holders of
Senior Debt. 
  
 Subject to the payment in full of all Senior
Debt in cash or cash equivalents, the Holders of the Notes shall be subrogated to the rights of the holders of Senior Debt to receive payments or distributions of cash, assets or securities of the Issuer applicable to the Senior Debt until the Notes
shall be paid in full; and, for the purposes of such subrogation, no such payments or distributions to the holders of the Senior Debt by or on behalf of the Issuer, or by or on behalf of the Holders by virtue of this Article Ten, which otherwise
would have been made to the Holders shall, as between the Issuer and the Holders, be deemed to be a payment by the Issuer to or on account of the Senior Debt, it being understood that the provisions of this Article Ten are and are intended solely
for the purpose of defining the relative rights of the Holders, on the one hand, and the holders of Senior Debt, on the other hand. 
  
 SECTION 10.06. Obligations of the Issuer Unconditional. 
  
 Nothing contained in this Article Ten or elsewhere in this Indenture or in the Notes is intended to or shall impair, as between the Issuer, and the
Holders, the obligation of the Issuer, which is absolute and unconditional, to pay to the Holders the principal of, and any interest on, the Notes as and when the same shall become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders and creditors of the Issuer other than the holders of the Senior Debt, nor shall anything herein or therein prevent the Holder of any Note or the Trustee on its behalf from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, of the holders of Senior Debt in respect of cash, assets or securities of the Issuer received upon the exercise of any such remedy. 

 
 SECTION 10.07. Notice to Trustee. 
  
 The Issuer shall give prompt written notice to the Trustee of any fact known
to the Issuer which would prohibit the making of any payment to or by the Trustee in respect of the Notes pursuant to the provisions of this Article Ten, although any delay or failure to give any such notice shall have no effect on the subordination
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anything to the contrary contained in this Article Ten or elsewhere in this Indenture, the Trustee shall not be charged with knowledge of the existence of
any default or event of default with respect to any Senior Debt or of any other facts which would prohibit the making of any payment to or by the Trustee unless and until the Trustee shall have received notice in writing from the Issuer, or from a
holder of Senior Debt or a Representative therefor and, prior to the receipt of any such written notice, the Trustee shall be entitled to assume (in the absence of actual knowledge to the contrary) that no such facts exist. The Trustee shall be
entitled to rely on the delivery to it of any notice pursuant to this Section 10.07 to establish that such notice has been given by a holder of Senior Debt (or a Representative thereof). 
  
 In the event that the Trustee determines in good faith that any evidence is required with respect to the right of any Person
as a holder of Senior Debt to participate in any payment or distribution pursuant to this Article Ten, the Trustee may request such Person to furnish evidence to the satisfaction of the Trustee as to the amounts of Senior Debt held by such Person,
the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article Ten, and if such evidence is not furnished the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to receive such payment. 
  
 SECTION 10.08. Reliance on Judicial Order or Certificate of Liquidating Agent. 
  
 Upon any payment or distribution of assets of the Issuer referred to in this Article Ten, the Trustee, subject to the provisions of Article Seven hereof,
and the Holders of the Notes shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which any insolvency, bankruptcy, receivership, dissolution, winding-up, liquidation, reorganization or similar case or
proceeding is pending, or upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee, assignee for the benefit of creditors, agent or other person making such payment or distribution, delivered to the Trustee or the Holders of
the Notes, for the purpose of ascertaining the persons entitled to participate in such payment or distribution, the holders of the Senior Debt and other Indebtedness of the Issuer, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article Ten. 
  
 SECTION 10.09. Trustee’s Relation to Senior Debt. 
  
 The Trustee and any agent of the Issuer or the Trustee shall be entitled to all the rights set forth in this Article Ten with respect to any Senior Debt which may at any time be held by it in its individual or any other capacity to the same
extent as any other holder of Senior Debt and nothing in this Indenture shall deprive the Trustee or any such agent of any of its rights as such holder. 
  
 With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically
set forth in this Article Ten, and no implied covenants or obligations with respect to the holders of Senior Debt shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of
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 Whenever a distribution is to be made or a notice given to holders or owners of Senior Debt, the
distribution may be made and the notice may be given to their Representative, if any. 
  
 SECTION 10.10. Subordination Rights Not Impaired by Acts or Omissions of the Issuer or Holders of Senior Debt. 
  
 No right of any present or future holders of any Senior Debt to enforce subordination as provided herein shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Issuer or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Issuer with the terms of this Indenture, regardless of any knowledge thereof, which
any such holder may have or otherwise be charged with. 
  
 Without
in any way limiting the generality of the foregoing paragraph, the holders of Senior Debt may, at any time and from time to time, without the consent of or notice to the Trustee, without incurring responsibility to the Trustee or the Holders of the
Notes and without impairing or releasing the subordination provided in this Article Ten or the obligations hereunder of the Holders of the Notes to the holders of the Senior Debt, do any one or more of the following: (i) change the manner, place or
terms of payment or extend the time of payment of, or renew or alter, Senior Debt, or otherwise amend or supplement in any manner Senior Debt, or any instrument evidencing the same or any agreement under which Senior Debt is outstanding; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior Debt; (iii) release any Person liable in any manner for the payment or collection of Senior Debt; and (iv) exercise or refrain from exercising any
rights against the Issuer and any other Person. 
  
 SECTION 10.11. Holders
Authorize Trustee To Effectuate Subordination of Notes. 
  
 Each Holder of the Notes by its acceptance of them authorizes and expressly directs the Trustee on its behalf to take such action as may be necessary or appropriate to effectuate, as between the holders of Senior Debt and the Holders of the
Notes, the subordination provided in this Article Ten, and appoints the Trustee its attorney-in-fact for such purposes, including, in the event of any dissolution, winding-up, liquidation or reorganization of the Issuer (whether in bankruptcy,
insolvency, receivership, reorganization or similar proceedings or upon an assignment for the benefit of credits or otherwise) tending towards liquidation of the business and assets of the Issuer, the filing of a claim for the unpaid balance of its
Notes and accrued interest in the form required in those proceedings. 
  
 If the Trustee does not file a proper claim or proof of debt in the form required in such proceeding prior to 30 days before the expiration of the time to file such claim or claims, then the holders of the Senior Debt or their
Representative are or is hereby authorized to have the right to file and are or is hereby authorized to file an appropriate claim for and on behalf of the Holders of said Notes. Nothing herein contained shall be deemed to authorize the Trustee or
the holders of Senior Debt or their Representative to authorize, consent to, accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the 

  

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Notes or the rights of any Holder thereof, or to authorize the Trustee or the holders of Senior Debt or their Representative to vote in respect of the claim
of any Holder in any such proceeding. 
  
 SECTION 10.12. This Article Ten Not
To Prevent Events of Default. 
  
 The failure to make a
payment on account of principal of, or interest on, the Notes by reason of any provision of this Article Ten will not be construed as preventing the occurrence of an Event of Default. 
  
 SECTION 10.13. Trustee’s Compensation Not Prejudiced. 
  
 Nothing in this Article Ten will apply to amounts due to the Trustee (other than payments of Obligations owing to Holders in
respect of the Notes) pursuant to other Sections of this Indenture. 
  
 ARTICLE ELEVEN 
  
 NOTE GUARANTEE 
  
 SECTION 11.01. Unconditional Guarantee. 
  
 Subject to the provisions of this Article Eleven, each of the Guarantors
hereby, jointly and severally, unconditionally and irrevocably guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Notes or the obligations of the Issuers or any other Guarantors to the Holders or the Trustee hereunder or thereunder: (a) (x) the due and punctual payment of the principal of, premium, if any, and interest on the Notes when and as
the same shall become due and payable, whether at maturity, upon redemption or repurchase, by acceleration or otherwise, (y) the due and punctual payment of interest on the overdue principal and (to the extent permitted by law) interest, if any, on
the Notes and (z) the due and punctual payment and performance of all other obligations of the Issuers and all other obligations of the other Guarantors (including under the Note Guarantees), in each case, to the Holders or the Trustee hereunder or
thereunder (including amounts due the Trustee under Section 7.07 hereof), all in accordance with the terms hereof and thereof (collectively, the “Guarantee Obligations”); and (b) in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, the due and punctual payment and performance of Guarantee Obligations in accordance with the terms of the extension or renewal, whether at maturity, upon redemption or repurchase, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed, or failing performance of any other obligation of the Issuers to the Holders under this Indenture or under the Notes, for whatever reason, each Guarantor shall be
obligated to pay, or to perform or cause the performance of, the same immediately. A Default under this Indenture or the Notes shall constitute an event of default under the Note Guarantees, and shall entitle the Holders of Notes to accelerate the
obligations of the Guarantors thereunder in the same manner and to the same extent as the obligations of the Issuers. 
  

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 Each of the Guarantors hereby agrees that its obligations hereunder shall be unconditional, irrespective
of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, any release of any other
Guarantor, the recovery of any judgment against the Issuers, any action to enforce the same, whether or not a Note Guarantee is affixed to any particular Note, or any other circumstance which might otherwise constitute a legal or equitable discharge
or defense of a Guarantor. Each of the Guarantors hereby waives the benefit of diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Issuers, any right to require a proceeding first
against the Issuers, protest, notice and all demands whatsoever and covenants that its Note Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, this Indenture and this Note Guarantee. This Note
Guarantee is a guarantee of payment and not of collection. If any Holder or the Trustee is required by any court or otherwise to return to the Issuers or to any Guarantor, or any custodian, trustee, liquidator or other similar official acting in
relation to the Issuers or such Guarantor, any amount paid by the Issuers or such Guarantor to the Trustee or such Holder, this Note Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. Each Guarantor
further agrees that, as between it, on the one hand, and the Holders of Notes and the Trustee, on the other hand, (a) subject to this Article Eleven, the maturity of the obligations guaranteed hereby may be accelerated as provided in Article Six for
the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (b) in the event of any acceleration of such obligations as provided in
Article Six hereof, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of this Note Guarantee.  
  
 SECTION 11.02. Subordination of Note Guarantee. 
  
 The obligations of each Guarantor under its Note Guarantee pursuant to this Article Eleven shall be junior and subordinated
to the prior payment in full of the Guarantor Senior Debt of such Guarantor in cash, Cash Equivalents or other cash equivalents reasonably acceptable to the holders of such Guarantor Senior Debt of such Guarantor on the same basis as the Notes are
junior and subordinated to Senior Debt of the Issuer. For the purposes of the foregoing sentence, the Trustee and the Holders shall have the right to receive and/or retain payments by any of the Guarantors only at such times as they may receive
and/or retain payments in respect of the Notes pursuant to this Indenture, including Article Ten hereof. 
  
 SECTION 11.03. Limitation on Guarantor Liability. 
  
 Each Subsidiary Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal, foreign or state law to the extent applicable to any Note Guarantee. To effectuate the foregoing intention,
the Trustee, the Holders and the Subsidiary Guarantors hereby irrevocably agree that the obligations of such Guarantor under its Note Guarantee and this Article Eleven shall be limited 

  

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to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of such Guarantor (including any guarantee under the Credit
Agreement) that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Subsidiary Guarantor in respect of the obligations of such other
Guarantor under this Article Eleven, result in the obligations of such Guarantor under its Note Guarantee not constituting a fraudulent transfer or conveyance. Each Subsidiary Guarantor that makes a payment for distribution under its Note Guarantee
is entitled to a contribution from each other Subsidiary Guarantor in a pro rata amount based on the adjusted net assets of each Subsidiary Guarantor. 
  
 SECTION 11.04. Execution and Delivery of Note Guarantee. 
  
 To further evidence its Note Guarantee set forth in Section 11.01, each Guarantor hereby agrees that a notation of such Note Guarantee, substantially in
the form of Exhibit F hereto, shall be endorsed on each Note authenticated and delivered by the Trustee. Such Note Guarantee shall be executed on behalf of each Guarantor by either manual or facsimile signature of one Officer or other person
duly authorized by all necessary corporate action of each Guarantor who shall have been duly authorized to so execute by all requisite corporate action. The validity and enforceability of any Note Guarantee shall not be affected by the fact that it
is not affixed to any particular Note. 
  
 Each of the Guarantors
hereby agrees that its Note Guarantee set forth in Section 11.01 shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Note Guarantee. 
  
 If an Officer of a Guarantor whose signature is on this Indenture or a Note
Guarantee no longer holds that office at the time the Trustee authenticates the Note on which such Note Guarantee is endorsed or at any time thereafter, such Guarantor’s Note Guarantee of such Note shall nevertheless be valid. 
  
 The delivery of any Note by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of any Note Guarantee set forth in this Indenture on behalf of each Guarantor. 
  

	SECTION	11.05. Release of a Subsidiary Guarantor. 

  
 A Subsidiary Guarantor shall be released from its obligations under its Note Guarantee and its obligations under this Indenture and the Registration
Rights Agreement: 
  
 (1) in the event of a sale
or other disposition of all or substantially all of the assets of such Subsidiary Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the Equity Interests of such Subsidiary Guarantor then held by the
Issuer and the Restricted Subsidiaries; or 
  
 (2) if such Subsidiary Guarantor is designated as an Unrestricted Subsidiary or otherwise ceases to be a Restricted Subsidiary, in each case in accordance with the 

  

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provisions of this Indenture, upon effectiveness of such designation or when it first ceases to be a Restricted Subsidiary, respectively; or 
  
 (3) in the event of a Covenant Defeasance or Legal
Defeasance. 
  
 The Trustee shall execute an appropriate
instrument prepared by the Issuers evidencing the release of a Guarantor from its obligations under its Note Guarantee upon receipt of a request by the Issuers or such Guarantor accompanied by an Officers’ Certificate and an Opinion of Counsel
certifying as to the compliance with this Section 11.05; provided, however, that the legal counsel delivering such Opinion of Counsel may rely as to matters of fact on one or more Officers’ Certificates of the Issuers. 

 
 Except as set forth in Articles Four and Five and this Section 11.05,
nothing contained in this Indenture or in any of the Notes shall prevent any consolidation or merger of a Guarantor with or into the Issuers or another Guarantor or shall prevent any sale or conveyance of the property of a Guarantor as an entirety
or substantially as an entirety to the Issuers or another Guarantor. 
  
 SECTION
11.06. Waiver of Subrogation. 
  
 Until this Indenture is
discharged and all of the Notes are discharged and paid in full, each Guarantor hereby irrevocably waives and agrees not to exercise any claim or other rights which it may now or hereafter acquire against the Issuers that arise from the existence,
payment, performance or enforcement of the Issuers’ obligations under the Notes or this Indenture and such Guarantor’s obligations under this Note Guarantee and this Indenture, in any such instance including, without limitation, any right
of subrogation, reimbursement, exoneration, contribution, indemnification, and any right to participate in any claim or remedy of the Holders against the Issuers, whether or not such claim, remedy or right arises in equity, or under contract,
statute or common law, including, without limitation, the right to take or receive from the Issuers, directly or indirectly, in cash or other assets or by set-off or in any other manner, payment or security on account of such claim or other rights.
If any amount shall be paid to any Guarantor in violation of the preceding sentence and any amounts owing to the Trustee or the Holders of Notes under the Notes, this Indenture, or any other document or instrument delivered under or in connection
with such agreements or instruments, shall not have been paid in full, such amount shall have been deemed to have been paid to such Guarantor for the benefit of, and held in trust for the benefit of, the Trustee or the Holders and shall forthwith be
paid to the Trustee for the benefit of itself or such Holders to be credited and applied to the obligations in favor of the Trustee or the Holders, as the case may be, whether matured or unmatured, in accordance with the terms of this Indenture.
Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by this Indenture and that the waiver set forth in this Section 11.06 is knowingly made in contemplation of such benefits.

  

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 SECTION 11.07. Immediate Payment. 
  
 Each Guarantor agrees to make immediate payment to the Trustee on behalf of the Holders of all Guarantee Obligations owing
or payable to the respective Holders upon receipt of a demand for payment therefor by the Trustee to such Guarantor in writing. 
  
 SECTION 11.08. No Set-Off. 
  
 Each payment to be made by a Guarantor hereunder in respect of the Guarantee Obligations shall be payable in the currency or currencies in which such
Guarantee Obligations are denominated, and shall be made without set-off, counterclaim, reduction or diminution of any kind or nature. 
  
 SECTION 11.09. Guarantee Obligations Absolute. 
  
 The obligations of each Guarantor hereunder are and shall be absolute and unconditional and any monies or amounts expressed to be owing or payable by each
Guarantor hereunder which may not be recoverable from such Guarantor on the basis of a Note Guarantee shall be recoverable from such Guarantor as a primary obligor and principal debtor in respect thereof. 
  
 SECTION 11.10. Note Guarantee Obligations Continuing. 
  
 The obligations of each Guarantor hereunder shall be continuing and shall
remain in full force and effect until all such obligations have been paid and satisfied in full. Each Guarantor agrees with the Trustee that it will from time to time deliver to the Trustee suitable acknowledgments of this continued liability
hereunder and under any other instrument or instruments in such form as counsel to the Trustee may advise and as will prevent any action brought against it in respect of any default hereunder being barred by any statute of limitations now or
hereafter in force and, in the event of the failure of a Guarantor so to do, it hereby irrevocably appoints the Trustee the attorney and agent of such Guarantor to make, execute and deliver such written acknowledgment or acknowledgments or other
instruments as may from time to time become necessary or advisable, in the judgment of the Trustee on the advice of counsel, to fully maintain and keep in force the liability of such Guarantor hereunder. 
  
 SECTION 11.11. Note Guarantee Obligations Not Reduced. 
  
 The obligations of each Guarantor hereunder shall not be satisfied, reduced
or discharged solely by the payment of such principal, premium, if any, interest, fees and other monies or amounts as may at any time prior to discharge of this Indenture pursuant to Article Eight be or become owing or payable under or by virtue of
or otherwise in connection with the Notes or this Indenture. 
  
 SECTION 11.12.
Note Guarantee Obligations Reinstated. 
  
 The obligations
of each Guarantor hereunder shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment which would otherwise have reduced 

  

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the obligations of any Guarantor hereunder (whether such payment shall have been made by or on behalf of the Issuers or by or on behalf of a Guarantor) is
rescinded or reclaimed from any of the Holders upon the insolvency, bankruptcy, liquidation or reorganization of the Issuers or any Guarantor or otherwise, all as though such payment had not been made. If demand for, or acceleration of the time for,
payment by the Issuers or any other Guarantor is stayed upon the insolvency, bankruptcy, liquidation or reorganization of the Issuers or such Guarantor, all such Indebtedness otherwise subject to demand for payment or acceleration shall nonetheless
be payable by each Guarantor as provided herein. 
  
 SECTION 11.13. Note
Guarantee Obligations Not Affected. 
  
 The obligations of
each Guarantor hereunder shall not be affected, impaired or diminished in any way by any act, omission, matter or thing whatsoever, occurring before, upon or after any demand for payment hereunder (and whether or not known or consented to by any
Guarantor or any of the Holders) which, but for this provision, might constitute a whole or partial defense to a claim against any Guarantor hereunder or might operate to release or otherwise exonerate any Guarantor from any of its obligations
hereunder or otherwise affect such obligations, whether occasioned by default of any of the Holders or otherwise, including, without limitation: 
  
 (a) any limitation of status or power, disability, incapacity or other circumstance relating to the Issuers or any other Person, including
any insolvency, bankruptcy, liquidation, reorganization, readjustment, composition, dissolution, winding-up or other proceeding involving or affecting the Issuers or any other Person; 
  
 (b) any irregularity, defect, unenforceability or invalidity in respect of any indebtedness or other
obligation of the Issuers or any other Person under this Indenture, the Notes or any other document or instrument; 
  
 (c) any failure of the Issuers or any other Guarantor, whether or not without fault on its part, to perform or comply with any of the
provisions of this Indenture, the Notes or any Note Guarantee, or to give notice thereof to a Guarantor; 
  
 (d) the taking or enforcing or exercising or the refusal or neglect to take or enforce or exercise any right or remedy from or against the
Issuers or any other Person or their respective assets or the release or discharge of any such right or remedy; 
  
 (e) the granting of time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to the
Issuers or any other Person; 
  
 (f) any change
in the time, manner or place of payment of, or in any other term of, any of the Notes, or any other amendment, variation, supplement, replacement or waiver of, or any consent to departure from, any of the Notes or this Indenture, including, without
limitation, any increase or decrease in the principal amount of or premium, if any, or interest on any of the Notes; 
  

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 (g) any change in the ownership, control, name, objects, businesses, assets, capital
structure or constitution of the Issuers or a Guarantor; 
  
 (h) any merger or amalgamation of the Issuers or a Guarantor with any Person or Persons; 
  
 (i) the occurrence of any change in the laws, rules, regulations or ordinances of any jurisdiction by any present or future action of any
governmental authority or court amending, varying, reducing or otherwise affecting, or purporting to amend, vary, reduce or otherwise affect, any of the Guarantee Obligations or the obligations of a Guarantor under its Note Guarantee; and

  
 (j) any other circumstance, including release
of a Guarantor pursuant to Section 11.05 (other than by complete, irrevocable payment) that might otherwise constitute a legal or equitable discharge or defense of the Issuers under this Indenture or the Notes or of a Guarantor in respect of its
Note Guarantee hereunder. 
  
 SECTION 11.14. Waiver. 
  
 Without in any way limiting the provisions of Section 11.01, each Guarantor
hereby waives notice of acceptance hereof, notice of any liability of any Guarantor hereunder, notice or proof of reliance by the Holders upon the obligations of any Guarantor hereunder, and diligence, presentment, demand for payment on the Issuers,
protest, notice of dishonor or non-payment of any of the Guarantee Obligations, or other notice or formalities to the Issuers or any Guarantor of any kind whatsoever. 
  
 SECTION 11.15. No Obligation to Take Action Against the Issuers. 
  
 Neither the Trustee nor any other Person shall have any obligation to enforce or exhaust any rights or remedies against the
Issuers or any other Person or any property of the Issuers or any other Person before the Trustee is entitled to demand payment and performance by any or all Guarantors of their liabilities and obligations under their Note Guarantees or under this
Indenture. 
  
 SECTION 11.16. Dealing with the Issuers and Others.

  
 The Holders, without releasing, discharging, limiting or
otherwise affecting in whole or in part the obligations and liabilities of any Guarantor hereunder and without the consent of or notice to any Guarantor, may 
  

(a) grant time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to the Issuers or
any other Person; 
  
 (b) take or abstain from
taking security or collateral from the Issuers or from perfecting security or collateral of the Issuers; 
  

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 (c) release, discharge, compromise, realize, enforce or otherwise deal with or do any act
or thing in respect of (with or without consideration) any and all collateral, mortgages or other security given by the Issuers or any third party with respect to the obligations or matters contemplated by this Indenture or the Notes; 
  
 (d) accept compromises or arrangements from the Issuers;

  
 (e) apply all monies at any time received
from the Issuers or from any security upon such part of the Guarantee Obligations as the Holders may see fit or change any such application in whole or in part from time to time as the Holders may see fit; and 
  
 (f) otherwise deal with, or waive or modify their right to
deal with, the Issuers and all other Persons and any security as the Holders or the Trustee may see fit. 
  
 SECTION 11.17. Default and Enforcement. 
  
 If any Guarantor fails to pay in accordance with Section 11.07 hereof, the Trustee may proceed in its name as trustee hereunder in the enforcement of the Note Guarantee of any such Guarantor and such Guarantor’s
obligations thereunder and hereunder by any remedy provided by law, whether by legal proceedings or otherwise, and to recover from such Guarantor the obligations. 
  
 SECTION 11.18. Amendment, Etc. 
  
 Subject to Section 9.03 hereof, no amendment, modification or waiver of any provision of this Indenture relating to any Guarantor or consent to any
departure by any Guarantor or any other Person from any such provision will in any event be effective unless it is signed by such Guarantor and the Trustee. 
  
 SECTION 11.19. Acknowledgment. 
  
 Each Guarantor hereby acknowledges communication of the terms of this Indenture and the Notes and consents to and approves of the same. 
  
 SECTION 11.20. Costs and Expenses. 
  
 Each Guarantor shall pay on demand by the Trustee any and all costs, fees and
expenses (including, without limitation, legal fees on a solicitor and client basis) incurred by the Trustee, its agents, advisors and counsel or any of the Holders in enforcing any of their rights under any Note Guarantee. 
  
 SECTION 11.21. No Merger or Waiver; Cumulative Remedies. 
  
 No Note Guarantee shall operate by way of merger of any of the obligations of
a Guarantor under any other agreement, including, without limitation, this Indenture. No failure to exercise and no delay in exercising, on the part of the Trustee or the Holders, any right, remedy, power or privilege hereunder or under this
Indenture or the Notes, shall operate as a waiver 

  

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thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or under this Indenture or the Notes preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges in the Note Guarantee and under this Indenture, the Notes and any other document or instrument between a
Guarantor and/or the Issuers and the Trustee are cumulative and not exclusive of any rights, remedies, powers and privilege provided by law. 
  
 SECTION 11.22. Survival of Note Guarantee Obligations. 
  
 Without prejudice to the survival of any of the other obligations of each Guarantor hereunder, the obligations of each Guarantor under Section 11.01 shall
survive the payment in full of the Guarantee Obligations and shall be enforceable against such Guarantor without regard to and without giving effect to any defense, right of offset or counterclaim available to or which may be asserted by the Issuers
or any Guarantor. 
  
 SECTION 11.23. Note Guarantee in Addition to Other
Guarantee Obligations. 
  
 The obligations of each Guarantor
under its Note Guarantee and this Indenture are in addition to and not in substitution for any other obligations to the Trustee or to any of the Holders in relation to this Indenture or the Notes and any guarantees or security at any time held by or
for the benefit of any of them. 
  
 SECTION 11.24. Severability.

  
 Any provision of this Article Eleven which is prohibited or
unenforceable in any jurisdiction shall not invalidate the remaining provisions and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction unless its removal
would substantially defeat the basic intent, spirit and purpose of this Indenture and this Article Eleven. 
  
 SECTION 11.25. Successors and Assigns. 
  
 Each Note Guarantee shall be binding upon and inure to the benefit of each Guarantor and the Trustee and the other Holders and their respective successors and permitted assigns, except that no Guarantor may assign any
of its obligations hereunder or thereunder. 
  

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 ARTICLE TWELVE 
  
 MISCELLANEOUS 
  
 SECTION 12.01. Trust Indenture Act Controls. 
  
 If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the Trust Indenture Act, such required or deemed provision
shall control. 
  

	SECTION	12.02. Notices. 

  
 Any notices or other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if made by hand delivery, by
telex, by nationally recognized overnight courier service, by telecopier or registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 
  
 if to the Issuer or a Guarantor: 
  

c/o Leiner Health Products Inc. 
 901 East
233rd Street 
 Carson, CA 90745 
 Attention: Chief Finance Officer and Senior Company Counsel 
  
 Telephone: (310) 835-8400 
 Facsimile: (310) 952-7760 
  
 if to the Trustee: 
  
 U.S. Bank National Association 
 60 Livingston
Avenue 
 St. Paul, MN 55107-2292 
 Attention: Corporate Trust Department 
  
 Telephone:
(651) 495-3913 
 Facsimile: (651) 495-8097 
  
 Each of the Issuer and the Trustee by written notice to each other such Person may designate additional or different addresses for notices to such Person.
Any notice or communication to the Issuer and the Trustee, shall be deemed to have been given or made as of the date so delivered if personally delivered; when replied to; when receipt is acknowledged, if telecopied; five (5) calendar days after
mailing if sent by registered or certified mail, postage prepaid (except that a notice of change of address shall not be deemed to have been given until actually received by the addressee); and next Business Day if by nationally recognized overnight
courier service. 
  

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 Any notice or communication mailed to a Holder shall be mailed to him by first class mail or other
equivalent means at his address as it appears on the registration books of the Registrar and shall be sufficiently given to him if so mailed within the time prescribed. 
  
 Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
  
 SECTION 12.03. Communications by Holders with Other Holders. 
  
 Holders may communicate pursuant to Trust Indenture Act § 312(b) with other Holders with respect to their rights under this Indenture, the Notes or
the Note Guarantees. The Issuer, the Trustee, the Registrar and any other Person shall have the protection of Trust Indenture Act § 312(c). 
  
 SECTION 12.04. Certificate and Opinion as to Conditions Precedent. 
  
 Upon any request or application by the Issuer to the Trustee to take any action under this Indenture, the Issuer shall furnish to the Trustee at the
request of the Trustee: 
  
 (1) an Officers’
Certificate, in form and substance satisfactory to the Trustee, stating that, in the opinion of the signers, all conditions precedent to be performed or effected by the Issuer, if any, provided for in this Indenture relating to the proposed action
have been complied with; and 
  
 (2) an Opinion
of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 
  
 SECTION 12.05. Statements Required in Certificate or Opinion. 
  
 Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture, other than the Officers’
Certificate required by Section 4.06, shall include: 
  
 (1) a statement that the Person making such certificate or opinion has read such covenant or condition; 
  
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; 
  
 (3) a
statement that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with or satisfied; and

  
 (4) a statement as to whether or not, in the
opinion of each such Person, such condition or covenant has been complied with; provided, however, that with respect to 

  

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matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificates of public officials. 
  
 SECTION 12.06. Rules by Paying Agent or Registrar. 
  
 The Paying Agent or Registrar may make reasonable rules and set reasonable
requirements for their functions. 
  
 SECTION 12.07. Legal Holidays.

  
 If a payment date is not a Business Day, payment may be made
on the next succeeding day that is a Business Day. 
  
 SECTION 12.08. Governing
Law. 
  
 This Indenture, the Notes and the Note Guarantees
will be governed by and construed in accordance with the laws of the State of New York. 
  
 SECTION 12.09. No Adverse Interpretation of Other Agreements. 
  
 This Indenture may not be used to interpret another indenture, loan or debt agreement of any of the Issuer or any of its Subsidiaries. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture. 
  
 SECTION
12.10. No Recourse Against Others. 
  
 No director,
officer, employee, incorporator, stockholder, member or manager of the Issuer or any Guarantor shall have any liability for any obligations of the Issuer under the Notes or this Indenture or of any Guarantor under its Note Guarantee or this
Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. Such waiver and release are part of the consideration for
issuance of the Notes and the Note Guarantees. 
  
 SECTION 12.11.
Successors. 
  
 All agreements of the Issuer and the
Guarantors in this Indenture, the Notes and the Note Guarantees shall bind their respective successors. All agreements of the Trustee in this Indenture shall bind its successor. 
  
 SECTION 12.12. Duplicate Originals. 
  
 All parties may sign any number of copies of this Indenture. Each signed copy or counterpart shall be an original, but all of them together shall
represent the same agreement. 
  

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 SECTION 12.13. Severability. 
  
 To the extent permitted by applicable law, in case any one or more of the provisions in this Indenture, in the Notes or in
the Note Guarantees shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be
affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law. 
  

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 SIGNATURES 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as of the date first written above. 
  

			
	 LEINER MERGER CORPORATION, as Issuer

		
	By:	 	 /s/ Peter J. Shabecoff

	 	 	 Name: Peter J. Shabecoff

	 	 	 Title: President

  

			
	U.S. BANK NATIONAL ASSOCIATION,
as Trustee
		
	By:	 	 /s/ Frank Leslie

	 	 	 Name: Frank Leslie

	 	 	 Title: Vice-President

  

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 EXHIBIT A 
  

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture] 
  
 [Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture] 
  
 LEINER MERGER CORPORATION, 
 11% Senior Subordinated Notes 2012 
  

					
	 	 	 	 	 CUSIP No.

	 No.
	 	 	 	$

  
 LEINER MERGER
CORPORATION, a Delaware corporation (the “Issuer”), for value received promise to pay to CEDE & CO., or its registered assigns, the principal sum of [            ] on
June 1, 2012. 
  
 Interest Payment Dates: June 1 and December 1,
commencing December 1, 2004. 
  
 Record Dates: May 15 and November
15. 
  
 Reference is made to the further provisions of this Note
contained herein, which will for all purposes have the same effect as if set forth at this place. 
  

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 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by its duly
authorized officer. 
  
 Dated: 
  

			
	LEINER MERGER CORPORATION, as Issuer
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

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 FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the 11% Senior Subordinated Notes due 2012 described in the
within-mentioned Indenture. 
  
 Dated: 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,
as Trustee

		
	By:	 	 
	 	 	Authorized Signatory

  

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 (Reverse of Note) 
  

11% Senior Subordinated Notes due 2012 
  
 Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 SECTION 1. Interest. Leiner Merger Corporation, a Delaware corporation
(the “Issuer”) promises to pay interest on the principal amount of this Note at 11% per annum from [ ], [            ] until maturity. The Issuer will pay interest
semi-annually on June 1 and December 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”), commencing
[            ], [            ]. Interest on the Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from the date of original issuance. The Issuer shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand to
the extent lawful at the interest rate applicable to the Notes; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods)
from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  
 SECTION 2. Method of Payment. The Issuer will pay interest on the Notes to the Persons who are registered Holders of Notes at the close of business
on the May 15 or November 15 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with respect to defaulted
interest. The Notes will be issued in denominations of $1,000 and integral multiples thereof. The Issuer shall pay principal, premium, if any, and interest on the Notes in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). Principal, premium, if any, and interest on the Notes will be payable at the office or agency of the Issuer maintained for such purpose except
that, at the option of the Issuer, the payment of interest may be made by check mailed to the Holders of the Notes at their respective addresses set forth in the register of Holders of Notes; provided that for Holders that have given wire
transfer instructions to the Issuer at least ten Business Days prior to the applicable payment date, the Issuer will make all payments of principal, premium and interest by wire transfer of immediately available funds to the accounts specified by
the Holders thereof. Until otherwise designated by the Issuer, the Issuer’s office or agency in New York will be the office of the Trustee maintained for such purpose. 
  
 SECTION 3. Paying Agent and Registrar. Initially, U.S. Bank National Association, the Trustee under the Indenture,
will act as Paying Agent and Registrar. The Issuer may change any Paying Agent or Registrar without notice to any Holder. Except as provided in the Indenture, the Issuer or any of their Subsidiaries may act in any such capacity. 
  
 SECTION 4. Indenture and Subordination. The Issuer issued the Notes
under an Indenture dated as of May 27, 2004 (“Indenture”) by and among the Issuer, the Trustee and from and after the consummation of the Merger (as defined in the Indenture), each of the Guarantors 

  

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named therein, as Guarantors. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “Trust Indenture Act”). The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement
of such terms. The payment of the Notes will, to the extent set forth in the Indenture, be subordinated in right of payment to the prior payment in full in cash or cash equivalents of all Senior Debt. 
  
 SECTION 5. Optional Redemption. Except as set forth in Section 6
hereof, at any time or from time to time on or after June 1, 2008, the Issuer, at its option, may redeem the Notes, in whole or in part, at the redemption prices (expressed as percentages of principal amount) set forth below, together with accrued
and unpaid interest thereon, if any, to the redemption date, if redeemed during the 12-month period beginning June 1 of the years indicated: 
  

				
	 Year

	  	Percentage

	 
	 2008
	  	105.50	%
	 2009
	  	102.75	%
	 2010 and thereafter
	  	100	%

  
 The Notes may be redeemed, in whole or
in part, at any time prior to June 1, 2008, at the option of the Issuer, at a redemption price equal to 100% of the principal amount of the Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and additional interest, if
any, to, the applicable redemption date. 
  
 SECTION 6.
Redemption With Proceeds From Equity Offerings or Upon a Change of Control. At any time prior to June 1, 2007, the Issuer may redeem at its option on any one or more occasions up to 40% of the aggregate principal amount of the Notes issued
under the Indenture with the net cash proceeds of one or more Qualified Equity Offerings at a redemption price equal to 111% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest thereon, if any, to the date of
redemption; provided that (1) at least 60% of the aggregate principal amount of Notes issued under the Indenture remains outstanding immediately after the occurrence of such redemption and (2) the redemption occurs within 90 days of the date
of the closing of any such Qualified Equity Offering 
  
 SECTION
7. Notice of Redemption. Notice of redemption will be mailed by first class mail at least 30 days but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at its registered address, except that redemption
notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a satisfaction and discharge of the Indenture. Notes in denominations larger than $1,000 may be redeemed in part. If any Note is to be
redeemed in part only, the notice of redemption that relates to such Note shall state the portion of the principal amount thereof to be redeemed. A new Note in principal amount equal to the unredeemed portion thereof will be issued in the name of
the Holder thereof upon cancellation of the original Note. On and after the Redemption Date, interest will cease to accrue on Notes or portions thereof called for redemption so long as the Issuer 

  

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has deposited with the paying agent for the Notes funds in satisfaction of the redemption price (including accrued and unpaid interest on the Notes to be
redeemed) pursuant to the Indenture. 
  
 SECTION 8. Mandatory
Redemption. For the avoidance of doubt, an offer to purchase pursuant to Section 9 hereof shall not be deemed a redemption. The Issuer shall not be required to make mandatory redemption payments with respect to the Notes. 
  
 SECTION 9. Repurchase at Option of Holder. Upon the occurrence
of a Change of Control, and subject to certain conditions set forth in the Indenture, the Issuer will be required to offer to purchase all of the outstanding Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and
unpaid interest, if any, thereon to the date of repurchase. 
  
 The Issuer is, subject to certain conditions and exceptions, obligated to make an offer to purchase Notes at 100% of their principal amount, plus accrued and unpaid interest, if any, thereon to the date of repurchase, with certain net cash
proceeds of certain sales or other dispositions of assets in accordance with the Indenture. 
  
 SECTION 10. Denominations, Transfer, Exchange. The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered and Notes may
be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Issuer may require a Holder to pay any taxes and fees required by
law or permitted by the Indenture. The Issuer and the Registrar are not required to transfer or exchange any Note selected for redemption. Also, the Issuer and the Registrar are not required to transfer or exchange any Notes for a period of 15 days
before a selection of Notes to be redeemed. 
  
 SECTION 11.
Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for all purposes. 
  
 SECTION 12. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture and the Notes may be amended or supplemented with the
written consent of the Holders of at least a majority in aggregate principal amount of the Notes then outstanding, and any existing Default or compliance with any provision may be waived with the consent of the Holders of a majority in aggregate
principal amount of the Notes then outstanding. Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture and the Notes to, among other things, cure any ambiguity, defect or inconsistency in the Indenture,
provide for uncertificated Notes in addition to certificated Notes, comply with any requirements of the SEC in connection with the qualification of the Indenture under the Trust Indenture Act, or make any change that does not materially adversely
affect the rights of any Holder of a Note. 
  
 SECTION 13.
Defaults and Remedies. If a Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes generally may declare all the Notes to be due and payable immediately. Notwithstanding
the foregoing, in the case of a Default arising from certain events of bankruptcy or insolvency as set forth in the Indenture, with respect to the Issuer, all outstanding Notes will become due and payable 

  

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without further action or notice. Holders of the Notes may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing Default (except a Default
relating to the payment of principal or interest including an accelerated payment or the failure to make a payment on the Change of Control Payment Date or the Net Proceeds Payment Date pursuant to a Net Proceeds Offer) or a Default in complying
with the provisions of Article Five of the Indenture if it determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the
Holders of all of the Notes waive any existing Default and its consequences under the Indenture except a continuing Default in the payment of interest on, or the principal of, or the premium on, the Notes. 
  
 SECTION 14. Restrictive Covenants. The Indenture contains certain
covenants that, among other things, limit the ability of the Issuer and its Restricted Subsidiaries to make restricted payments, to incur indebtedness, to create liens, to sell assets, to permit restrictions on dividends and other payments by
Restricted Subsidiaries of the Issuer, to consolidate, merge or sell all or substantially all of its assets or to engage in transactions with affiliates. The limitations are subject to a number of important qualifications and exceptions. The Issuer
must annually report to the Trustee on compliance with such limitations and other provisions in the Indenture. 
  
 SECTION 15. No Recourse Against Others. No director, officer, employee, incorporator, stockholder, member or manager of the Issuer or any Guarantor
shall have any liability for any obligations of the Issuer under the Notes or the Indenture, or of any Guarantor under its Note Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.
Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 
  

SECTION 16. Note Guarantees. This Note will be entitled to the benefits of certain Note Guarantees made for the benefit of the Holders.
Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and obligations thereunder of the Guarantors, the Trustee and the Holders. 
  
 SECTION 17. Trustee Dealings with the Issuer. Subject to certain
terms, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Issuer, their Subsidiaries or their respective Affiliates as if it were not the Trustee.

  
 SECTION 18. Authentication. This Note shall not be
valid until authenticated by the manual signature of the Trustee or an authenticating agent. 
  
 SECTION 19. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with
right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
  

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 SECTION 20. Additional Rights of Holders of Restricted Global Notes and Restricted Definitive
Notes. Pursuant to, but subject to the exceptions in, the Registration Rights Agreement, the Issuer and the Guarantors will be obligated to consummate an exchange offer pursuant to which the Holder of this Note shall have the right to exchange
this Note for an 11% Senior Subordinated Note due 2012 of the Issuer which shall have been registered under the Securities Act, in like principal amount and having terms identical in all material respects to this Note (except that such note shall
not be entitled to Additional Interest and shall not contain terms with respect to transfer restrictions). The Holders shall be entitled to receive certain Additional Interest in the event such exchange offer is not consummated or the Notes are not
offered for resale and upon certain other conditions, all pursuant to and in accordance with the terms of the Registration Rights Agreement. a 
  
 SECTION 21. CUSIP and ISIN
Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may use CUSIP or ISIN numbers in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers
placed thereon. 
  
 SECTION 22. Governing Law. This Note
shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 The Issuer will furnish to any Holder upon written request and without charge a copy of the Indenture. 

	a	This Section not to appear on Exchange Notes or Private Exchange Notes or Additional Notes unless required by the terms of such Additional Notes.

  

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 ASSIGNMENT FORM 
  

I or we assign and transfer this Note to 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (Print or type name, address and zip
code of assignee or transferee) 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (Insert Social Security or other
identifying number of assignee or transferee) 
  
 and irrevocably appoint
                                        
                                 agent to transfer this Note on the books of the
Issuer. The agent may substitute another to act for him. 
  

									
					
	 Dated:
	 	 	 	 	 	 Signed:
	 	 
	 	 	 	 	 	 	 	 	(Sign exactly as name appears on the other side of this Note)

  

					
			
	 Signature Guarantee:
	 	 	 	  
	 	 	 	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the Trustee)

  
 In connection with any
transfer of this Note occurring prior to the date which is the date following the second anniversary of the original issuance of this Note, the undersigned confirms that it has not utilized any general solicitation or general advertising in
connection with the transfer and is making the transfer pursuant to one of the following: 
  
 [Check One] 
  

					
	 (1)
	  	 ̈	  	to the Issuer or a subsidiary thereof; or
			
	 (2)
	  	 ̈	  	to a person who the transferor reasonably believes is a “qualified institutional buyer” pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”); or
			
	 (3)
	  	 ̈	  	to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that has furnished to the Trustee a signed letter containing certain
representations and agreements (the form of which letter can be obtained from the Trustee); or
			
	 (4)
	  	 ̈	  	outside the United States to a non-”U.S. person” as defined in Rule 902 of Regulation S under the Securities Act in compliance with Rule 904 of Regulation S under the Securities Act;
or

  

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	 (5)
	  	 ̈	  	pursuant to the exemption from registration provided by Rule 144 under the Securities Act or pursuant to another exemption available under the Securities Act; or
			
	 (6)
	  	 ̈	  	pursuant to an effective registration statement under the Securities Act.

  
 and unless the box below is checked,
the undersigned confirms that such Note is not being transferred to an “affiliate” of the Issuer as defined in Rule 144 under the Securities Act (an “Affiliate”): 
  
  ̈ The transferee is
an Affiliate of the Issuer. 
  
 Unless one of the foregoing items
(1) through (6) is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the registered Holder thereof; provided, however, that if item (3), (4) or (5) is
checked, the Issuer or the Trustee may require, prior to registering any such transfer of the Notes, in their sole discretion, such written legal opinions, certifications (including an investment letter in the case of box (3) or (4)) and other
information as the Trustee or the Issuer has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. 
  
 If none of the foregoing items (1) through (6) are checked, the Trustee or
Registrar shall not be obligated to register this Note in the name of any person other than the Holder hereof unless and until the conditions to any such transfer of registration set forth herein and in Section 2.16 of the Indenture shall have been
satisfied. 
  

									
					
	 Dated:
	 	 	 	 	 	 Signed:
	 	 
	 	 	 	 	 	 	 	 	(Sign exactly as name appears on the other side of this Note)

  

									
					
	 Signature Guarantee:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the Trustee)

  
 TO BE
COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED 
  
 The undersigned
represents and warrants that it is purchasing this Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Issuer as the undersigned has requested pursuant to Rule 144A
or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

									
					
	 Dated:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 NOTICE:
	 	 To be executed by an executive officer

  

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 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.09 or Section 4.13 of the Indenture,
check the appropriate box: 
  
 Section 4.09  ̈ Section 4.13  ̈ 
  
 If you want to elect to have only part of this Note purchased by the Issuer
pursuant to Section 4.09 or Section 4.13 of the Indenture, state the amount (in denominations of $1,000 and integral multiples thereof):
$                     
  

									
					
	 Dated:
	 	 	 	 	 	 Signed:
	 	 
	 	 	 	 	 	 	 	 	 (Sign exactly as name
 appears on the other

side of this Note)

  

									
					
	 Signature Guarantee:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the Trustee)

  

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 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTEa 
  
 The following exchanges of a part of this Global Note for an interest in another Global Note or for a Physical Note, or exchanges of a part of another Global Note or Physical Note for an interest in this Global Note,
have been made: 
  

									
	 Date of Exchange

	 	 Amount of decrease in
 Principal Amount of
 this Global Note

	 	 Amount of increase in
 Principal Amount of
 this Global Note

	  	 Principal Amount of
 this Global Note
 following such decrease
 (or increase)

	  	 Signature of
 authorized officer of
 Trustee or Note
 Custodian

	 	 	 	 	 	  	 	  	 
	 	 	 	 	 	  	 	  	 

	a	This schedule should be included only if the Note is issued in global form. 

  

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 EXHIBIT B 
  

FORM OF LEGENDS 
  
 Each Global Note and Physical Note that constitutes a Restricted Security shall bear the following legend (the “Private Placement Legend”) on
the face thereof until after the second anniversary of the Issue Date, unless otherwise agreed by the Issuer and the Holder thereof or if such legend is no longer required by Section 2.16(g) of the Indenture: 
  
 THE SECURITY (OR ITS PREDECESSOR) EVIDENCED BY THIS
CERTIFICATE WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE U.S. SECURITIES ACT OF 1933, AND THE SECURITY EVIDENCED BY THIS CERTIFICATE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE SECURITIES ACT. EACH PURCHASER OF THE SECURITY EVIDENCED BY THIS CERTIFICATE (1) BY ITS ACQUISITION OF THE SECURITY REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THE SECURITY EVIDENCED BY THIS CERTIFICATE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, AND (2) IS HEREBY NOTIFIED THAT THE
SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A OR ANOTHER EXEMPTION UNDER THE SECURITIES ACT. THE HOLDER OF THE SECURITY EVIDENCED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE
ISSUER AND THE GUARANTORS THAT (X) THIS SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1)(A) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE, OR ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A PERSON
THAT IS NOT A U.S. PERSON (AS DEFINED IN RULE 902 UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT, (D) TO AN ACCREDITED INVESTOR (WITHIN THE MEANING OF RULE 501(a)(1), (2), (3), OR (7)
UNDER THE SECURITIES ACT) (AN “INSTITUTIONAL ACCREDITED INVESTOR”) THAT IS PURCHASING AT LEAST $100,000 OF NOTES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF AN INSTITUTIONAL ACCREDITED INVESTOR (AND BASED UPON AN OPINION OF COUNSEL IF THE
ISSUER SO REQUESTS), (2) TO THE ISSUER OR ANY OF ITS SUBSIDIARIES OR (3) UNDER AN EFFECTIVE REGISTRATION 

  

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STATEMENT AND, IN EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (Y)
THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED BY THIS CERTIFICATE OF THE RESALE RESTRICTIONS DESCRIBED IN (X) ABOVE. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO
YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY OR IF THE PROPOSED TRANSFEREE IS AN INSTITUTIONAL ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. 
  
 Each Global Note authenticated and delivered hereunder shall also bear the
following legend: 
  
 THIS NOTE IS A GLOBAL NOTE
WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN
THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A 

  

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SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN SECTION 2.16 OF THE INDENTURE. 
  
 Each
Temporary Regulation S Global Note shall also bear the following legend: 
  
 “THIS GLOBAL NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER THIS TEMPORARY GLOBAL NOTE NOR ANY
INTEREST HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW. 
  
 “NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED
CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS OF THE INDENTURE.” 
  

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 EXHIBIT C 
  

Form of Certificate To Be 
 Delivered in
Connection with  
 Transfers to Non-QIB Institutional Accredited Investors 
  
 [                ], [        ] 
  

U.S. Bank National Association 
 60 Livingston Avenue 
 St. Paul, MN 55107-2292 
 Phone (651) 495-3913 
 Fax (651) 495-8097 
 Attention: Corporate Trust Department 
 Ladies and Gentlemen: 
  
 In connection with our proposed purchase of 11% Senior Subordinated Corporation Notes due 2012 (the “Notes”) of LEINER MERGER
CORPORATION, a Delaware corporation (the “Issuer”), we confirm that: 
  
 1. We understand that any subsequent transfer of the Notes is subject to certain restrictions and conditions set forth in the Indenture
relating to the Notes (the “Indenture”) and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes except in compliance with, such restrictions and conditions and the Securities Act of 1933, as
amended (the “Securities Act”), and all applicable state securities laws. 
  
 2. We understand that the offer and sale of the Notes have not been registered under the Securities Act, and that the Notes may not be
offered, sold, pledged or otherwise transferred except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell, offer, pledge or
otherwise transfer any Notes, we will do so only (i) to the Issuer or any of its subsidiaries, (ii) inside the United States in a transaction meeting the requirements of Rule 144A under the Securities Act to a person who we reasonably believe to be
a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act), (iii) inside the United States to an institutional “accredited investor” (as defined below) that is purchasing at least $100,000 of Notes for
its own account or for the account of an institutional accredited investor and who, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to the Trustee (as defined in the Indenture) a signed letter containing
certain representations and agreements relating to the restrictions on transfer of the Notes (the form of which letter can be obtained from the Trustee), (iv) outside the United States to a person that is not a U.S. person (as defined in Rule 902
under the Securities Act) in accordance with Regulation S promulgated under the Securities Act, (v) pursuant to the exemption from registration provided by Rule 144 under the Securities Act (if available) or another available exemption under the
Securities 

  

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Act or (vi) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person purchasing any of the
Notes from us a notice advising such purchaser that resales of the Notes are restricted as stated herein. 
  
 3. We are not acquiring the Notes for or on behalf of, and will not transfer the Notes to, any pension or welfare plan (as defined in
Section 3 of the Employee Retirement Income Security Act of 1974, as amended) or plan (as defined in Section 4975 of the Internal Revenue Code of 1986, as amended), except as permitted in the section entitled “Notice to Investors” of the
Offering Memorandum. 
  
 4. We understand that,
on any proposed resale of any Notes, we will be required to furnish to the Trustee and the Issuer such certification, legal opinions and other information as the Trustee and the Issuer may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. We further understand that the Notes purchased by us will bear a legend to the foregoing effect. 
  
 5. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are acting are each able to bear the
economic risk of our or their investment, as the case may be. 
  
 6. We are acquiring the Notes purchased by us for our account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion.

  

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 You, as Trustee, the Issuer, counsel for the Issuer and others are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 
  

			
	 Very truly yours,

	
	[Name of Transferee]
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

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 EXHIBIT D 
  

Form of Certificate To Be Delivered 
 in
Connection with Transfers 
 Pursuant to Regulation S 
  

[            ], [        ] 
  
 U.S. Bank National Association 
 60 Livingston Avenue 
 St. Paul, MN 55107-2292 
 Phone (651) 495-3913 
 Fax (651) 495-8097 
 Attention: Corporate Trust Department 
  

	 	Re:	Leiner Merger Corporation (the “Issuer”)  

	 	    	11% Senior Subordinated Notes due 2012 (the “Notes”)  

  
 Ladies and Gentlemen: 
  
 In connection with our proposed sale of $[        ] aggregate principal amount of the Notes, we confirm that such
sale has been effected pursuant to and in accordance with Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent that: 
  
 (1) the offer of the Notes was not made to a person in the
United States; 
  
 (2) either (a) at the time the
buy offer was originated, the transferee was outside the United States or we and any person acting on our behalf reasonably believed that the transferee was outside the United States, or (b) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither we nor any person acting on our behalf knows that the transaction has been prearranged with a buyer in the United States; 
  
 (3) no directed selling efforts have been made in the United
States in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable; 
  
 (4) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; and 
  
 (5) we have advised the transferee of the transfer
restrictions applicable to the Notes. 
  
 You, as Trustee, the
Issuer, counsel for the Issuer and others are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested 

  

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party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the
meanings set forth in Regulation S. 
  

			
	Very truly yours,
	
	[Name of Transferor]
		
	By:	 	 
	 	 	Authorized Signatory

  

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 EXHIBIT E 
  

FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH 
 TRANSFERS OF TEMPORARY REGULATION S GLOBAL NOTE 
  
                             ,         
    
  
 U.S. Bank National
Association 
 60 Livingston Avenue 
 St. Paul, MN 55107-2292 
 Phone (651) 495-3913 
 Fax (651) 495-8097 
 Attention: Corporate Trust Department 
  

	 	Re:	Leiner Merger Corporation (the “Issuer”)  

	 	    	11% Senior Subordinated Notes due 2012 (the “Notes”) 

  
 Dear Sirs: 
  
 This letter relates to U.S. $
                     principal amount of Notes represented by a certificate (the “Legended Certificate”) which bears a legend
outlining restrictions upon transfer of such Legended Certificate. Pursuant to Section 2.16(c) of the Indenture (the “Indenture”) dated as of May 27, 2004 relating to the Notes, we hereby certify that we are (or we will hold such
securities on behalf of) a person outside the United States (or to an Initial Purchaser (as defined in the Indenture)) to whom the Notes could be transferred in accordance with Rule 904 of Regulation S promulgated under the U.S. Securities Act of
1933, as amended. 
  
 You, as Trustee, the Issuer, counsel for the
Issuer and others are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered
hereby. Terms used in this letter have the meanings set forth in Regulation S. 
  

			
	Very truly yours,
	
	[Name of Holder]
		
	By:	 	 
	 	 	Authorized Signature

  

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 EXHIBIT F 
  

NOTE GUARANTEE 
  
 For value received, each of the undersigned (including any successor Person under the Indenture) hereby unconditionally guarantees, jointly and severally,
to the extent set forth in the Indenture (as defined below) to the Holder of this Note the payment of principal, premium, if any, and interest on this Note in the amounts and at the times when due and interest on the overdue principal, premium, if
any, and interest, if any, of this Note when due, if lawful, and, to the extent permitted by law, the payment or performance of all other obligations of the Issuer under the Indenture or the Notes, to the Holder of this Note and the Trustee, all in
accordance with and subject to the terms and limitations of this Note, the Indenture, including Article Eleven thereof, and this Note Guarantee. This Note Guarantee will become effective in accordance with Article Eleven of the Indenture and its
terms shall be evidenced therein. The validity and enforceability of any Note Guarantee shall not be affected by the fact that it is not affixed to any particular Note. 
  
 Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Indenture dated as of May 27,
2004, among Leiner Merger Corporation, a Delaware corporation (the “Issuer”), the Guarantors named therein and U.S. Bank National Association, as trustee (the “Trustee”), as amended or supplemented (the “Indenture”).

  
 The obligations of the undersigned to the Holders of Notes and
to the Trustee pursuant to this Note Guarantee and the Indenture are expressly set forth in Article Eleven of the Indenture and reference is hereby made to the Indenture for the precise terms of the Note Guarantee and all of the other provisions of
the Indenture to which this Note Guarantee relates. 
  
 No
director, officer, employee, incorporator, stockholder, member or manager of any Guarantor, as such, shall have any liability for any obligations of such Guarantors under such Guarantors’ Note Guarantee or the Indenture or for any claim based
on, in respect of, or by reason of, such obligation or its creation. 
  
 This Note Guarantee is subordinated in right of payment, in the manner and to the extent set forth in Article Eleven of the Indenture, to the prior payment in full in cash or cash equivalents of all Guarantor Senior Debt of the Guarantors,
whether outstanding on the date of the Indenture or thereafter created, incurred, assumed or guaranteed. 
  
 This Note Guarantee shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 This Note Guarantee is subject to release upon the terms set forth in the
Indenture. 
  

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 IN WITNESS WHEREOF, each Guarantor has caused its Note Guarantee to be duly executed. 
  
 Date: 
  

			
	[                            ]
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 F-2

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