Document:

EX-4(a)(v)

 Exhibit 4(a)(v) 

DATED 3 FEBRUARY 2014 

SMITH & NEPHEW PLC 

Arranged by 
 BARCLAYS
BANK PLC 
 and J.P. MORGAN LIMITED 

With 
 J.P. MORGAN
EUROPE LIMITED 
 (as Facility Agent) 

 
  

FACILITY AGREEMENT 
 U.S.
$1,400,000,000 
  
  

 
 

 
 Freshfields Bruckhaus Deringer LLP 

65 Fleet Street 
 London EC4Y 1HS

 Facility Agreement 

CONFORMED COPY 
 CONTENTS

  

							
	CLAUSE	  	 	  	PAGE	 
			
	 1.
	  	 INTERPRETATION
	  	 	1	  
			
	 2.
	  	 FACILITIES
	  	 	15	  
			
	 3.
	  	 PURPOSE
	  	 	17	  
			
	 4.
	  	 CONDITIONS PRECEDENT
	  	 	18	  
			
	 5.
	  	 UTILISATION
	  	 	18	  
			
	 6.
	  	 REPAYMENT
	  	 	19	  
			
	 7.
	  	 PREPAYMENT AND CANCELLATION
	  	 	19	  
			
	 8.
	  	 INTEREST
	  	 	23	  
			
	 9.
	  	 TERMS
	  	 	25	  
			
	 10.
	  	 MARKET DISRUPTION
	  	 	25	  
			
	 11.
	  	 TAXES
	  	 	27	  
			
	 12.
	  	 INCREASED COSTS
	  	 	36	  
			
	 13.
	  	 MITIGATION
	  	 	37	  
			
	 14.
	  	 PAYMENTS
	  	 	38	  
			
	 15.
	  	 GUARANTEE AND INDEMNITY
	  	 	40	  
			
	 16.
	  	 REPRESENTATIONS
	  	 	43	  
			
	 17.
	  	 INFORMATION COVENANTS
	  	 	45	  
			
	 18.
	  	 FINANCIAL COVENANTS
	  	 	47	  
			
	 19.
	  	 GENERAL COVENANTS
	  	 	51	  
			
	 20.
	  	 DEFAULT
	  	 	54	  
			
	 21.
	  	 THE ADMINISTRATIVE PARTIES
	  	 	58	  
			
	 22.
	  	 EVIDENCE AND CALCULATIONS
	  	 	64	  
			
	 23.
	  	 FEES
	  	 	64	  
			
	 24.
	  	 INDEMNITIES AND BREAK COSTS
	  	 	65	  
			
	 25.
	  	 EXPENSES
	  	 	66	  
			
	 26.
	  	 AMENDMENTS AND WAIVERS
	  	 	67	  
			
	 27.
	  	 CHANGES TO THE PARTIES
	  	 	69	  
			
	 28.
	  	 CONFIDENTIALITY
	  	 	75	  
			
	 29.
	  	 SET OFF
	  	 	78	  
			
	 30.
	  	 PRO RATA SHARING
	  	 	78	  
			
	 31.
	  	 SEVERABILITY
	  	 	79	  
			
	 32.
	  	 COUNTERPARTS
	  	 	79	  
			
	 33.
	  	 NOTICES
	  	 	80	  

  
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	 34.
	  	 LANGUAGE
	  	 	82	  
			
	 35.
	  	 GOVERNING LAW
	  	 	82	  
			
	 36.
	  	 ENFORCEMENT
	  	 	82	  
		
	 SCHEDULE 1 ORIGINAL LENDERS
	  	 	84	  
		
	 SCHEDULE 2 CONDITIONS PRECEDENT DOCUMENTS
	  	 	85	  
		
	 PART A TO BE DELIVERED BEFORE
THE FIRST REQUEST
	  	 	85	  
		
	 PART B FOR AN ADDITIONAL GUARANTOR
	  	 	86	  
		
	 SCHEDULE 3 REQUESTS
	  	 	88	  
		
	 PART A FORM OF REQUEST
	  	 	88	  
		
	 PART B FORM OF SELECTION NOTICE
	  	 	89	  
		
	 SCHEDULE 4 FORM OF TRANSFER CERTIFICATE
	  	 	90	  
		
	 SCHEDULE 5 FORM OF ACCESSION AGREEMENT
	  	 	93	  
		
	 SCHEDULE 6 FORM OF RESIGNATION REQUEST
	  	 	94	  
		
	 SCHEDULE 7 FORM OF COMPLIANCE CERTIFICATE
	  	 	95	  
		
	 SCHEDULE 8 FORM OF INCREASE CONFIRMATION
	  	 	96	  
		
	 SCHEDULE 9 TIMETABLE
	  	 	99	  

  
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 THIS AGREEMENT is
dated 3 February 2014 
 BETWEEN: 
  

	(1)	SMITH & NEPHEW PLC (the Company); 

  

	(2)	BARCLAYS BANK PLC and J.P. MORGAN LIMITED as bookrunners and arrangers (whether acting individually or together the Mandated Lead Arrangers); 

 

	(3)	THE FINANCIAL INSTITUTIONS listed in Schedule 1 (Original Lenders) as original lenders (the Original Lenders); 

 

	(4)	BARCLAYS BANK PLC and JPMORGAN CHASE BANK, N.A. as underwriters (in this capacity, whether acting individually or together, the Underwriters); and 

 

	(5)	J.P. MORGAN EUROPE LIMITED as facility agent (in this capacity the Facility Agent). 

IT IS AGREED as follows: 
  

	1.	INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement: 

Acceptable Bank means a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced debt obligations of
A- or higher by Standard & Poor’s or Fitch or A3 or higher by Moody’s or a comparable rating from an internationally recognised credit rating agency. 

Accession Agreement means a letter, substantially in the form of Schedule 5 (Form of Accession Agreement), with such amendments as
the Facility Agent and the Company may agree. 
 Acquisition means the acquisition effected by merger of the Target pursuant to the Merger
Agreement. 
 Additional Guarantor means a member of the Group which becomes a Guarantor after the date of this Agreement in accordance with
Clause 27 (Changes to the Parties). 
 Administrative Party means a Mandated Lead Arranger or the Facility Agent. 

Affiliate means a Subsidiary or a Holding Company of a person or any other Subsidiary of that Holding Company. 

Agent’s Dollar Rate of Exchange means the Facility Agent’s spot rate of exchange for the purchase of the relevant currency in the
London foreign exchange market with U.S. Dollars at or about 11.00 a.m. on a particular day. 
 Anti-Corruption Laws means all laws, rules and
regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption. 

Availability Period means the period from and including the date of this Agreement to and including the earlier of: 

 

	(a)	the date falling nine months after the date of this Agreement; 

  

	(b)	the date upon which the Company notifies the Facility Agent in writing that it has decided not to pursue the Acquisition; and 

  
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	(c)	the date upon which the Merger Agreement expires without the Acquisition having taken place. 

 Available
Commitment means a Lender’s Commitment minus: 
  

	(a)	the Dollar Amount of its participation in any outstanding Loans; and 

  

	(b)	in relation to any proposed Utilisation, the Dollar Amount of its participation in any Loans that are due to be made on or before the proposed Utilisation Date, 

other than that Lender’s participation in any other Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date. 

Available Facility means the aggregate for the time being of each Lender’s Available Commitment. 

Borrower means the Company. 
 Break
Costs means the amount (if any) which a Lender is entitled to receive under this Agreement as compensation if any part of a Loan or overdue amount is prepaid as calculated pursuant to the terms of Clause 24.3 (Break Costs). 

Business Day means a day (other than a Saturday or a Sunday) on which banks are open for general business in London and New York. 

Clean-Up Date means the date falling three months after the Closing Date. 

Clean-Up Default means an Event of Default to the extent it relates to members of the Target Group. 

Clean-Up Representation means any of the representations and warranties under Clause 16 (Representations) to the extent they relate to
members of the Target Group. 
 Clean-Up Undertaking means any of the undertakings specified in Clauses 17 (Information Covenants) and
19 (General Covenants) to the extent they relate to members of the Target Group. 
 Closing Date means the date upon which the
Acquisition is consummated pursuant to the terms of the Merger Agreement. 
 Code means the United States Internal Revenue Code of 1986 (or
any successor legislation thereto), as amended from time to time, and the regulations promulgated and the rulings issued thereunder, all as the same may be in effect at such date. 

Commitment means: 
  

	(a)	for an Original Lender, the amount set opposite its name in Schedule 1 (Original Lenders) under the heading Commitment and the amount of any other Commitment transferred to it in accordance with this
Agreement or assumed by it in accordance with Clause 2.2 (Increase); and 

  

	(b)	for any other Lender, the amount of any Commitment transferred to it in accordance with this Agreement or assumed by it in accordance with Clause 2.2 (Increase), 

to the extent not cancelled, transferred or reduced under this Agreement. 

Compliance Certificate has the meaning given to it in Clause 17.2 (Compliance Certificate). 

  
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 Confidential Information means all information relating to the Company, any Obligor, the Group,
the Finance Documents or the Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party
under, the Finance Documents or a Facility from either: 
  

	(a)	any member of the Group or any of its advisers; or 

  

	(b)	another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any member of the Group or any of its advisers, 

in whatever form, and includes information given orally, any document, electronic file or any other way of representing or recording information which
contains or is derived or copied from such information, any Funding Rate or Reference Bank Quotation but excludes information that: 
  

	 	(i)	is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 28 (Confidentiality); or 

 

	 	(ii)	is identified in writing at the time of delivery as non-confidential by any member of the Group or any of its advisers; or 

  

	 	(iii)	is known by that Finance Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source
which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality.

 Confidentiality Undertaking means a confidentiality undertaking substantially in the recommended form of the LMA or in any
other form agreed between the Company and the Facility Agent. 
 Default means: 

 

	(a)	an Event of Default; or 

  

	(b)	an event referred to in Clause 20 (Default) which would be (with the expiry of a grace period or the giving of notice under the Finance Documents or any combination of them) an Event of Default.

 Defaulting Lender means any Lender: 
  

	(a)	which has failed to make its participation in a Loan available or has notified the Facility Agent that it will not make its participation in a Loan available by the Utilisation Date of that Loan in accordance with
Clause 5.4 (Advance of Loan); 

  

	(b)	which has otherwise rescinded or repudiated a Finance Document; or 

  

	(c)	with respect to which an Insolvency Event has occurred and is continuing, 

 unless, in the case of paragraph
(a) above: 
  

	 	(i)	its failure to pay is caused by: 

  

	 	(A)	administrative or technical error; or 

  

	 	(B)	a Disruption Event; and, 

 payment is made within three Business Days of its due date; or 

  
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	 	(ii)	the Facility Agent is an Impaired Agent and the Company has failed to notify the Lenders by giving not less than three Business Days’ prior notice of alternative arrangements for that payment; or 

 

	 	(iii)	the Lender is disputing in good faith whether it is contractually obliged to make the payment in question. 

Disruption Event means either or both of: 
  

	(a)	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise
in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or 

 

	(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party: 

 

	 	(i)	from performing its payment obligations under the Finance Documents; or 

  

	 	(ii)	from communicating with other Parties in accordance with the terms of the Finance Documents, 

 and which (in
either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted. 
 Dollar Amount means the amount
in U.S. Dollars of a relevant Loan. 
 ERISA means, at any date, the United States Employee Retirement Income Security Act of 1974 (or any
successor legislation thereto), as amended from time to time, and the regulations promulgated and the rulings issued thereunder, all as the same may be in effect at such date. 

ERISA Affiliate means any person that for the purposes of Title IV of ERISA and Section 412 of the Code would be deemed at any relevant
time to be a single employer with an Obligor, pursuant to Section 414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA. 

ERISA Event means: 
  

	(a)	any reportable event, as defined in Section 4043(c) of ERISA, with respect to a Plan, as to which PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified of such
event; 

  

	(b)	the filing of a notice of intent to terminate any Plan, if such termination would require material additional contributions in order to be considered a standard termination within the meaning of Section 4041(b) of
ERISA, the filing under Section 4041(c) of ERISA of a notice of intent to terminate any Plan or the termination of any Plan under Section 4041(c) of ERISA; 

 

	(c)	the institution of proceedings under Section 4042 of ERISA by PBGC for the termination of, or the appointment of a trustee to administer, any Plan; 

 

	(d)	any failure by any Plan to satisfy the minimum funding requirements of Section 412 and 430 of the Code or Section 302 of ERISA applicable to such Plan, in each case whether or not waived; 

  
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	(e)	the failure to make a required contribution to any Plan that would result in the imposition of an encumbrance under Section 412 or 430 of the Code, or at any time prior to the date hereof, a filing under
Section 412 of the Code or Section 302 of ERISA of any request for a minimum funding variance with respect to any Plan; 

  

	(f)	an engagement in a non-exempt prohibited transaction within the meaning of Section 4975 of the Code or Section 406 of ERISA; 

 

	(g)	the complete or partial withdrawal of any Obligor or any ERISA Affiliate from a Multiemployer Plan; and 

  

	(h)	a determination that any Plan is, or is reasonably expected to be, in “at risk” status (as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code). 

Event of Default means an event specified as such in this Agreement. 

Existing Facility Agreement means the U.S.$1,000,000,000 revolving credit facility entered into by the Company as borrower and, amongst others,
The Royal Bank of Scotland PLC as facility agent on 9 December 2010. 
 Facility means the term loan facility referred to in Clause 2.1
(The Facility). 
 Facility Office means the office(s) notified by a Lender to the Facility Agent: 

 

	(a)	on or before the date it becomes a Lender; or 

  

	(b)	by not less than five Business Days’ written notice, 

 as the office(s) through which it will perform its
obligations under this Agreement. 
 FATCA means: 
  

	(a)	sections 1471 to 1474 of the Code or any associated regulations or other official guidance; 

  

	(b)	any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the
implementation of paragraph (a); or 

  

	(c)	any agreement pursuant to the implementation of paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

 FATCA Application Date means: 
  

	(a)	in relation to a withholdable payment described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014; 

 

	(b)	in relation to a withholdable payment described in section 1473(1)(A)(ii) of the Code (which relates to gross proceeds from the disposition of property of a type that can produce interest from sources within the US),
1 January 2017; or 

  

	(c)	 in relation to a passthru payment described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January
2017, 

  
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or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this Agreement.

 FATCA Deduction means a deduction or withholding from a payment under a Finance Document required by FATCA. 

FATCA Exempt Party means a Party that is entitled to receive payments free from any FATCA Deduction. 

Fee Letter means any letter entered into by reference to this Agreement between one or more Administrative Parties and the Company setting out
the amount of certain fees referred to in this Agreement. 
 Final Maturity Date means the date falling 24 months after the Signing Date. 

Finance Document means: 
  

	(a)	this Agreement; 

  

	(b)	any Fee Letter; 

  

	(c)	the Mandate Letter; 

  

	(d)	any Transfer Certificate; 

  

	(e)	any Accession Agreement; 

  

	(f)	any Resignation Request; 

  

	(g)	any Increase Confirmation; and 

  

	(h)	any other document designated as such by the Facility Agent and the Company. 

 Finance Party
means a Lender, an Underwriter or an Administrative Party. 
 Financial Indebtedness means any indebtedness (without double counting) for or
in respect of: 
  

	(a)	moneys borrowed; 

  

	(b)	any amount raised by acceptance under any acceptance credit facility (or dematerialised equivalent); 

  

	(c)	any bond, note, debenture, loan stock or other similar instrument; 

  

	(d)	any finance or capital lease as defined in accordance with the accounting principles applied in connection with the Original Financial Statements; 

 

	(e)	receivables sold or discounted (otherwise than on a non recourse basis); 

  

	(f)	the acquisition cost of any asset to the extent payable after its acquisition or possession by the party liable where the deferred payment is arranged primarily as a method of raising finance or financing the
acquisition of that asset; 

  

	(g)	 any derivative transaction protecting against or benefiting from fluctuations in any rate or price (and at any time the then marked to market value of
the derivative transaction will be 

  
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used to calculate its amount, such marked to market value being determined by reference to the documentation of that transaction or, if there is no such provision in the documentation, determined
by the Company acting reasonably and on the basis of quotations from the relevant counterparty); 

  

	(h)	any other transaction (including any forward sale or purchase agreement) which has the commercial effect of a borrowing; 

  

	(i)	any counter indemnity obligation in respect of any guarantee, indemnity, bond, letter of credit or any other instrument issued by a bank or financial institution; or 

 

	(j)	any guarantee, indemnity or similar assurance against financial loss of any person in respect of any item referred to in paragraphs (a) to (i) above, 

provided that the definition of Financial Indebtedness does not include any indebtedness owing from a member of the Group to another member of the Group. 

Fitch means Fitch Ratings Limited or Fitch Ratings Inc. (as appropriate), or any successor to its ratings business. 

Fund Raising Proceeds means the cash proceeds received by the Group following a Relevant Fund Raising, net of Tax and less any costs and
expenses reasonably incurred in connection with the Relevant Fund Raising. 
 Funding Rate means any rate notified to the Facility Agent by a
Lender pursuant to paragraph (c)(ii) of Clause 10.2 (Market disruption). 
 Group means the Company and its Subsidiaries. 

Guarantor means the Company or an Additional Guarantor. 

Holding Company means a holding company within the meaning of section 1159 of the Companies Act 2006. 

Impaired Agent means the Facility Agent at any time when: 
  

	(a)	it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment; 

 

	(b)	the Facility Agent otherwise rescinds or repudiates a Finance Document; 

  

	(c)	(if the Facility Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of Defaulting Lender; or 

 

	(d)	an Insolvency Event has occurred and is continuing with respect to the Facility Agent; 

 unless, in the case of
paragraph (a) above: 
  

	 	(i)	its failure to pay is caused by: 

  

	 	(A)	administrative or technical error; or 

  

	 	(B)	a Disruption Event; and 

 payment is made within three Business Days of its due date; or 

  
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	 	(ii)	the Facility Agent is disputing in good faith whether it is contractually obliged to make the payment in question. 

Increase Confirmation means a confirmation substantially in the form set out in Schedule 8 (Form of Increase Confirmation). 

Increase Lender has the meaning given to that term in Clause 2.2 (Increase). 

Increased Cost means: 
  

	(a)	an additional or increased cost; 

  

	(b)	a reduction in the rate of return under a Finance Document or on the overall capital of a Finance Party or any of its Affiliates; or 

 

	(c)	a reduction of an amount due and payable under any Finance Document, 

 which is incurred or suffered by a
Finance Party or any of its Affiliates but only to the extent attributable to that Finance Party having entered into any Finance Document or funding or performing its obligations under any Finance Document. 

Insolvency Event in relation to a Finance Party means that the Finance Party: 

 

	(a)	is dissolved (other than pursuant to a consolidation, amalgamation or merger); 

  

	(b)	becomes insolvent or is unable to pay its debts in each case, under the laws of any relevant jurisdiction applicable to that Finance Party or fails or admits in writing its inability generally to pay its debts as they
become due; 

  

	(c)	has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); 

 

	(d)	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets;

  

	(e)	has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all
its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; or 

 

	(f)	causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (e) above.

 Interpolated Screen Rate means, in relation to LIBOR for any Loan, the rate (rounded to the same number of decimal places as
the two relevant Screen Rates) which results from interpolating on a linear basis between: 
  

	(a)	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Term of that Loan; and 

 

	(b)	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Term of that Loan, 

  
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 each as of the Specified Time on the Rate Fixing Day for that Loan. 

Lender means: 
  

	(a)	an Original Lender; or 

  

	(b)	any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 2.2 (Increase) or Clause 27 (Changes to the Parties). 

LIBOR means for a Term of any Loan: 
  

	(a)	the applicable Screen Rate; 

  

	(b)	(if no Screen Rate is available for the Term of that Loan) the Interpolated Screen Rate for that Loan; or 

  

	(c)	if: 

  

	 	(i)	no Screen Rate is available for that Term of that Loan; and 

  

	 	(ii)	it is not possible to calculate an Interpolated Screen Rate for that Loan, 

 the Reference Bank
Rate, 
 as of, in the case of paragraphs (a) and (c) above, the Specified Time on the Rate Fixing Day for the currency of that Loan and for a
period equal in length to the Term of that Loan. 
 Loan means, unless otherwise stated in this Agreement, the principal amount of each
borrowing under this Agreement or the principal amount outstanding of that borrowing. 
 Majority Lenders means, at any time, Lenders: 

 

	(a)	whose share in the outstanding Loans and whose undrawn Commitments then aggregate 60 per cent. or more of the aggregate of all the Loans and the undrawn Commitments of all the Lenders; 

 

	(b)	if there is no Loan then outstanding, whose undrawn Commitments then aggregate 60 per cent. or more of the Total Commitments; or 

 

	(c)	if there is no Loan then outstanding and the Total Commitments have been reduced to zero, whose Commitments aggregated 60 per cent. or more of the Total Commitments immediately before the reduction.

 Mandate Letter means the mandate letter dated on or about the date of this Agreement between, among others, the Mandated Lead
Arrangers, the Underwriters and the Company. 
 Margin has the meaning set out in Clause 8.3 (Margin adjustments). 

Margin Regulations means Regulations T, U and X issued by the Board of Governors of the United States Federal Reserve System. 

Margin Stock means “margin stock” or “margin securities” as defined in the Margin Regulations. 

Material Adverse Effect means a material adverse effect on the ability of an Obligor to comply with its payment obligations under this Agreement
or the ability of the Company to comply with its obligations under Clause 18.3 (Gearing) or Clause 18.4 (Interest cover). 

  
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 Material Subsidiary means, at any time, a Subsidiary of the Company: 

 

	(a)	whose gross assets (excluding intra Group items) then equal or exceed 15 per cent. of the gross assets of the Group; or 

  

	(b)	whose earnings before interest and tax (excluding intra Group items) then equal or exceed 15 per cent. of the earnings before interest and tax of the Group. 

For this purpose: 
  

	 	(i)	the gross assets or earnings before interest and tax of a Subsidiary of the Company will be determined from its financial statements (consolidated if it has Subsidiaries) upon which the latest audited financial
statements of the Group have been based; 

  

	 	(ii)	if a Subsidiary of the Company becomes a member of the Group after the date on which the latest audited financial statements of the Group have been prepared, the gross assets or earnings before interest and tax of that
Subsidiary will be determined from its latest financial statements; 

  

	 	(iii)	the gross assets or earnings before interest and tax of the Group will be determined from its latest audited financial statements, adjusted (where appropriate) to reflect the gross assets or earnings before interest and
tax of any company or business subsequently acquired or disposed of; and 

  

	 	(iv)	if a Material Subsidiary disposes of all or substantially all of its assets to another Subsidiary of the Company, it will immediately cease to be a Material Subsidiary and the other Subsidiary (if it is not already)
will immediately become a Material Subsidiary; the subsequent financial statements of those Subsidiaries and the Group will be used to determine whether those Subsidiaries are Material Subsidiaries or not. 

If there is a dispute as to whether or not a member of the Group is a Material Subsidiary, a certificate of the auditors of the Company will be, in the
absence of manifest error, conclusive. 
 Merger Agreement means an agreement and plan of merger pursuant to which the Acquisition will be
effected. 
 Moody’s means Moody’s Investors Service Limited or any successor to its ratings business. 

Multiemployer Plan means a “multiemployer plan” (as defined in Section 3(37) of ERISA) that is subject to Title IV of ERISA to
which an Obligor or any ERISA Affiliate is required to contribute. 
 New Lender has the meaning given to that term in Clause 27 (Changes
to the Parties). 
 Obligor means a Borrower or a Guarantor. 

Original Financial Statements means the audited consolidated financial statements of the Company for the year ended 31 December 2012. 

Party means a party to this Agreement. 

PBGC means the United States Pension Benefit Guaranty Corporation referred to and defined in ERISA. 

Plan means an employee benefit plan as defined in Section 3(3) of ERISA that is subject to Title IV of ERISA (other than a Multiemployer
Plan): 

  
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	(a)	maintained by any Obligor or any ERISA Affiliate; or 

  

	(b)	to which any Obligor or any ERISA Affiliate is required to make any payment or contribution. 

 Pro Rata
Share means: 
  

	(a)	for the purpose of determining a Lender’s participation in a Utilisation, the proportion which its Available Commitment bears to the Available Facility; and 

 

	(b)	for any other purpose at any time: 

  

	 	(i)	the proportion which a Lender’s share of the Loans (if any) bears to all the Loans; 

  

	 	(ii)	if there is no Loan outstanding at the relevant time, the proportion which its Commitment bears to the Total Commitments at that time; or 

 

	 	(iii)	if there is no Loan outstanding and the Total Commitments have been cancelled at the relevant time, the proportion which its Commitments bore to the Total Commitments immediately before being cancelled.

 Rate Fixing Day means the second Business Day before the first day of a Term for a Loan, unless market practice differs in
the London interbank market for U.S. Dollars, in which case the Rate Fixing Day will be determined by the Facility Agent in accordance with market practice in the London interbank market (and if quotations would normally be given by leading banks in
the London interbank market on more than one day, the Rate Fixing Day will be the last of those days). 
 Reference Bank Quotation means any
quotation supplied to the Facility Agent by a Reference Bank. 
 Reference Bank Rate means the arithmetic mean of the rates (rounded upwards
to four decimal places) as supplied to the Facility Agent at its request by the Reference Banks as the rate at which the relevant Reference Bank could borrow funds in the London interbank market for the relevant period, were it to do so by asking
for and then accepting interbank offers for deposits in reasonable market size for that period. 
 Reference Banks means JPMorgan Chase Bank,
N.A. and any other bank or financial institution agreed by the Facility Agent and the Company under this Agreement. 
 Relevant Fund Raising
means a fund raising conducted after the date of this Agreement: (i) by any member of the Group by way of a bond issuance or U.S. private placement raised in the international capital markets or (ii) by the Company by way of term debt from
banks or financial institutions. 
 Repeating Representations means the representations that are deemed to be repeated under this Agreement.

 Representative means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian. 

Request means a request for a Loan, substantially in the form of Part A of Schedule 3 (Form of Request). 

Resignation Request has the meaning given to that term in Clause 27.7 (Resignation of an Obligor (other than the Company)). 

  
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 Sanctioned Country means, at any time, a country or territory which is itself subject to a
general export, import, financial or investment embargo under any Sanctions (at the time of this Agreement, Cuba, Iran, North Korea, Sudan and Syria). 

Sanctioned Person means, at any time: 
  

	(a)	any person listed in any Sanctions-related list of designated persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S Department of State, or by the United Nations
Security Council, the European Union or any EU member state; 

  

	(b)	any person owned or controlled by any such person or persons; or 

  

	(c)	any person operating, organised or located in a Sanctioned Country. 

 Sanctions means economic or
financial sanctions or trade embargoes imposed, administered or enforced from time to time by: 
  

	(a)	the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State; or 

 

	(b)	by the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom. 

Screen Rate means the London interbank offered rate administered by the British Bankers’ Association or ICE Benchmark Administration
Limited (or any other person which takes over the administration of that rate) for U.S. Dollars and for the relevant period displayed either (a) on pages LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays
that rate); or (b) on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters. If such page or service ceases to be available, the Facility Agent may specify another page or service
displaying the London interbank rate after consultation with the Company. 
 Security Interest means any mortgage, pledge, lien, charge,
assignment, hypothecation or security interest. 
 Selection Notice means a notice substantially in the form set out in Part B of
Schedule 3 (Form of Selection Notice). 
 Signing Date means the date of this Agreement. 

Specified Time means a time determined in accordance with Schedule 9 (Timetable). 

Standard & Poor’s means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies Inc., or any
successor to its ratings business. 
 Subsidiary means: 
  

	(a)	a subsidiary within the meaning of section 1159 of the Companies Act 2006; and 

  

	(b)	for the purposes of Clause 18 (Financial covenants), unless the context otherwise requires, a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006. 

TARGET2 means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilises a single shared platform
and which was launched on 19 November 2007. 

  
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 TARGET Day means any day on which TARGET2 is open for the settlement of payments in euro. 

Target means ArthroCare Corporation, a corporation incorporated in Delaware. 

Target Group means the Target and its Subsidiaries. 

Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in
connection with any failure to pay or any delay in paying any of the same). 
 Tax Payment means a payment made by an Obligor to a Finance
Party in any way relating to a Tax Deduction, including an increase in a payment made by an Obligor to a Finance Party under Clause 11.2 (Tax Gross-up) or a payment under Clause 11.3 (Tax indemnity). 

Term means each period determined under this Agreement by reference to which interest on a Loan or an overdue amount is calculated. 

Total Commitments means the aggregate of the Commitments, being U.S.$1,400,000,000 at the Signing Date. 

Transfer Certificate means a certificate in the form of Schedule 4 (Form of Transfer Certificate) with such amendments as the
Facility Agent may approve or reasonably require or any other form agreed between the Facility Agent and the Company. 
 Transfer Date means,
in relation to an assignment or a transfer, the later of: 
  

	(a)	the proposed Transfer Date specified in the relevant Transfer Certificate; and 

  

	(b)	the date on which the Facility Agent executes the relevant Transfer Certificate. 

 U.K. means the
United Kingdom of Great Britain and Northern Ireland. 
 U.K. Tax means any Tax imposed under the laws of the U.K. 

U.S. means the United States of America including any state of the United States of America and the District of Colombia. 

U.S. Dollars or U.S.$ means the lawful currency for the time being of the United States of America. 

Utilisation means a utilisation of the Facility. 

Utilisation Date means the date on which the Facility is utilised. 

VAT means: 
  

	(a)	any Tax imposed in compliance with Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and 

 

	(b)	any other Tax of a similar nature whether imposed in a member state of the European Union in substitution for, or levied in addition to, any Tax referred to in paragraph (a) above, or imposed elsewhere.

  

	1.2	Construction 

  

	(a)	The following definitions have the meanings given to them in Clause 18 (Financial covenants): 

  
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	 	(i)	Consolidated Total Net Borrowings; 

  

	 	(ii)	Consolidated EBITDA; and 

  

	 	(iii)	Consolidated Net Interest Payable. 

  

	(b)	In this Agreement, unless the contrary intention appears, a reference to: 

  

	 	(i)	an amendment includes a supplement, novation, extension, (whether of maturity or otherwise), restatement, re-enactment or replacement (however fundamental and whether or not more onerous) and amended is to
be construed accordingly; 

  

	 	(ii)	assets includes present and future properties, revenues and rights of every description; 

  

	 	(iii)	an authorisation includes an authorisation, consent, approval, resolution, permit, licence, exemption, filing, registration or notarisation; 

 

	 	(iv)	the Facility Agent, the Arranger, any Finance Party, any Lender, any Obligor or any Party shall be construed so as to include its successors in title, permitted assigns and
permitted transferees; 

  

	 	(v)	indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent; 

 

	 	(vi)	“know your customer” checks are to the identification checks that a Finance Party requests to meet its obligations under any applicable law or regulation to identify a person who is (or is to become)
its customer; 

  

	 	(vii)	a person includes any individual, firm, company, corporation, government, state or agency of a state or any unincorporated association or body (including a partnership, trust, joint venture or consortium),
agency, organisation or other entity (whether or not having separate legal personality); 

  

	 	(viii)	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but, if not having the force of law, being of a type with which any person to which it
applies is accustomed to comply) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation; 

 

	 	(ix)	a currency is a reference to the lawful currency for the time being of the relevant country; 

  

	 	(x)	a Default being outstanding means that it has not been remedied or waived; 

  

	 	(xi)	a provision of law is a reference to that provision as extended, applied, amended or re enacted and includes any subordinate legislation; 

 

	 	(xii)	a Clause or a Schedule is a reference to a clause of, or a schedule to, this Agreement; 

  

	 	(xiii)	a person includes its successors in title, permitted assigns and permitted transferees; 

  

	 	(xiv)	a Finance Document or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated; and 

  
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	 	(xv)	a time of day is a reference to London time. 

  

	(c)	Unless the contrary intention appears, a reference to a month or months is a reference to a period starting on one day in a calendar month and ending on the numerically corresponding day in the next
calendar month or the calendar month in which it is to end, except that (in relation only to the last month of any period): 

  

	 	(i)	if the numerically corresponding day is not a Business Day, the period will end on the next Business Day in that month (if there is one) or the preceding Business Day (if there is not); 

 

	 	(ii)	if there is no numerically corresponding day in that month, that period will end on the last Business Day in that month; and 

  

	 	(iii)	notwithstanding sub paragraph (i) above, a period which commences on the last Business Day of a month will end on the last Business Day in the calendar month in which it is to end. 

 

	(d)	     

  

	 	(i)	Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit
of any term of that Finance Document. 

  

	 	(ii)	Notwithstanding any term of any Finance Document, the consent of any person who is not a party to a Finance Document is not required to rescind, vary (including release or compromise any liability under) or terminate of
that Finance Document at any time. 

  

	(e)	A reference to a Party will not include that Party if it has ceased to be a Party under this Agreement. 

  

	(f)	Unless the contrary intention appears: 

  

	 	(i)	a term used in any other Finance Document or in any notice given in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement; 

 

	 	(ii)	any non-payment obligation of an Obligor under the Finance Documents remains in force for so long as any payment obligation is or may be outstanding or any Commitment is in force under the Finance Documents; and

  

	 	(iii)	the headings in this Agreement do not affect its interpretation. 

  

	2.	FACILITIES 

  

	2.1	The Facility 

 Subject to the terms of this Agreement, the Lenders make available to the Borrower a
U.S. Dollar term loan facility in an aggregate amount equal to the Total Commitments. 
  

	2.2	Increase 

  

	(a)	The Company may by giving prior notice to the Facility Agent no later than 30 Business Days after the effective date of a cancellation of: 

  
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	 	(i)	the Available Commitments of a Defaulting Lender in accordance with Clause 7.10 (Right of cancellation in relation to a Defaulting Lender); or 

 

	 	(ii)	the Commitments of a Lender in accordance with 

  

	 	(A)	Clause 7.1 (Mandatory prepayment - illegality); or 

  

	 	(B)	Clause 7.9 (Right of replacement or repayment and cancellation in relation to a single Lender), 

request that the Total Commitments be increased (and the Total Commitments shall be so increased) in an aggregate amount in U.S. Dollars of up
to the amount of the Available Commitments or Commitments so cancelled as follows: 
  

	 	(iii)	the increased Commitments will be assumed by one or more Lenders or other banks, financial institutions, trusts, funds or other entities (each an Increase Lender) selected by the Company (each of which
shall not be a member of the Group and which is further acceptable to the Facility Agent (acting reasonably)) and each of which confirms its willingness to assume and does assume all the obligations of a Lender corresponding to that part of the
increased Commitments which it is to assume, as if it had been an Original Lender; 

  

	 	(iv)	each of the Obligors and any Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Obligors and the Increase Lender would have assumed and/or acquired had the
Increase Lender been an Original Lender; 

  

	 	(v)	each Increase Lender shall become a Party as a Lender and any Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase
Lender and those Finance Parties would have assumed and/or acquired had the Increase Lender been an Original Lender; 

  

	 	(vi)	the Commitments of the other Lenders shall continue in full force and effect; and 

  

	 	(vii)	any increase in the Total Commitments shall take effect on the date specified by the Company in the notice referred to above or any later date on which the conditions set out in paragraph (b) below are satisfied.

  

	(b)	An increase in the Total Commitments will only be effective on: 

  

	 	(i)	the execution by the Facility Agent of an Increase Confirmation from the relevant Increase Lender; and 

  

	 	(ii)	in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase the performance by the Facility Agent of all necessary “know your customer” or other similar checks under all
applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender, the completion of which the Facility Agent shall promptly notify to the Company and the Increase Lender. The Facility Agent shall
promptly notify the Company and the Increase Lender upon being so satisfied. 

  

	(c)	 Each Increase Lender, by executing the Increase Confirmation, confirms (for the avoidance of doubt) that the Facility Agent has authority to execute
on its behalf any amendment or waiver 

  
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that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the increase becomes effective. 

 

	(d)	Unless the Facility Agent otherwise agrees or the increased Commitment is assumed by an existing Lender, the Company shall, on the date upon which the increase takes effect, pay to the Facility Agent (for its own
account) a fee of U.S. $2,000 and the Company shall promptly on demand pay the Facility Agent the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with any increase in Commitments under this Clause.

  

	(e)	The Company may pay to the Increase Lender a fee in the amount and at the times agreed between the Company and the Increase Lender in a letter between the Company and the Increase Lender setting out that fee. A
reference in this Agreement to a Fee Letter shall include any letter referred to in this paragraph. 

  

	(f)	Clause 27.4 (Limitation of responsibility of Existing Lender) shall apply mutatis mutandis in this Clause in relation to an Increase Lender as if references in that Clause to: 

 

	 	(i)	an Existing Lender were references to all the Lenders immediately prior to the relevant increase; 

  

	 	(ii)	the New Lender were references to that Increase Lender; and 

  

	 	(iii)	a re-transfer and re-assignment were references to respectively a transfer and assignment. 

 

	2.3	Nature of a Finance Party’s rights and obligations 

 Unless otherwise agreed by all the Finance
Parties: 
  

	(a)	the obligations of a Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations does not affect the obligations of any other Party under the Finance Documents; no
Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents; and 

  

	(b)	the rights of a Finance Party under the Finance Documents are separate and independent rights, and a debt arising under the Finance Documents to a Finance Party is a separate and independent debt; a Finance Party may,
except as otherwise stated in the Finance Documents, separately enforce those rights. 

  

	3.	PURPOSE 

  

	3.1	Loan 

 The Borrower shall apply all amounts borrowed under the Facility towards: 

 

	(a)	funding the cash consideration payable by the Company under the Acquisition; 

  

	(b)	funding the payment of any costs and expenses incurred by the Company or a member of the Group in connection with the Acquisition; and 

 

	(c)	the refinancing of certain existing indebtedness of the Target Group. 

  

	3.2	No obligation to monitor 

 No Finance Party is bound to monitor or verify the utilisation of the
Facility. 

  
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	4.	CONDITIONS PRECEDENT 

  

	4.1	Conditions precedent documents 

 A Request may not be given until the Facility Agent has notified the
Company and the Lenders that it has received all of the documents and evidence set out in Part A of Schedule 2 (Conditions precedent documents) in form and substance satisfactory to the Facility Agent. The Facility Agent must give
this notification as soon as reasonably practicable. 
  

	4.2	Further conditions precedent 

 Subject to Clause 20.14 (Clean-Up Period), the obligations of each
Lender to participate in any Loan are subject to the further conditions precedent that on both the date of the Request and the Utilisation Date for that Loan: 
  

	(a)	the Repeating Representations are correct in all material respects; and 

  

	(b)	no Event of Default is outstanding or would result from the Loan. 

  

	4.3	Maximum number 

 Unless the Facility Agent agrees, a Request may not be given if, as a result, there
would be more than 10 Loans outstanding. 
  

	5.	UTILISATION 

  

	5.1	Giving of Requests 

  

	(a)	The Borrower may borrow a Loan by giving to the Facility Agent a duly completed Request not later than the Specified Time. 

  

	(b)	Each Request is irrevocable. 

  

	5.2	Completion of Requests 

 A Request will not be regarded as having been duly completed unless: 

 

	(a)	it identifies the Borrower; 

  

	(b)	the Utilisation Date is a Business Day falling within the Availability Period; and 

  

	(c)	the proposed amount and Term comply with this Agreement. 

 Up to 10 Loans may be requested in a Request. 

 

	5.3	Amount of Loan 

  

	(a)	Unless agreed otherwise by the Facility Agent and except as provided below, the amount of the Loan must be a minimum of U.S.$5,000,000 and an integral multiple of U.S.$1,000,000. 

 

	(b)	The amount of the Loan may also be the balance of the relevant undrawn Commitments in respect of the Facility or such other amount as the Facility Agent or the Lenders may agree. 

 

	(c)	The amount of each Lender’s share of the Loan will be its Pro Rata Share on the proposed Utilisation Date. 

  
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	5.4	Advance of Loan 

  

	(a)	The Facility Agent must promptly on the date that it receives a Request notify each Lender of the details of the requested Loan and the amount of its share in that Loan. 

 

	(b)	No Lender is obliged to participate in a Loan if as a result: 

  

	 	(i)	its share in the Loans under the Facility would exceed its Commitment for the Facility; or 

  

	 	(ii)	the Loans would exceed the Total Commitments. 

  

	(c)	If the conditions set out in this Agreement have been met, each Lender must make its share in the Loan available to the Facility Agent for the Borrower on the Utilisation Date. 

 

	6.	REPAYMENT 

  

	(a)	The Borrower must repay each Loan made to it in full on the Final Maturity Date. 

  

	(b)	The Borrower may not reborrow any part of the Facility which is repaid. 

  

	7.	PREPAYMENT AND CANCELLATION 

  

	7.1	Mandatory prepayment - illegality 

  

	(a)	A Lender must notify the Company promptly if it becomes aware that it is unlawful in any jurisdiction for that Lender to perform any of its obligations under a Finance Document or to fund or maintain its share in any
Loan. 

  

	(b)	After notification under paragraph (a) above: 

  

	 	(i)	the Borrower must repay or prepay the share of that Lender in each Loan utilised by it on the date specified in paragraph (c) below; and 

 

	 	(ii)	the Commitments of that Lender will be immediately cancelled. 

  

	(c)	The date for repayment or prepayment of a Lender’s share in a Loan will be the earlier of: 

  

	 	(i)	the latest date allowed by law; and 

  

	 	(ii)	the last day of the current Term of that Loan. 

  

	7.2	Mandatory prepayment - change of control 

  

	(a)	The Company must promptly notify the Facility Agent if it becomes aware of any person or group of persons acting in concert which acquires control of the Company. 

 

	(b)	After notification under paragraph (a) above, each Lender may by notice to the Company: 

  

	 	(i)	cancel its Commitments; and 

  

	 	(ii)	demand that its participation in all outstanding Loans, together with accrued interest and all other amounts accrued under the Finance Documents be immediately due and payable. 

Any such notice will take effect in accordance with its terms. 

  
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	(c)	In paragraph (a) above: 

  

	 	(i)	control has the meaning given to it in sections 450 and 451 of the Corporation Tax Act 2010; and 

  

	 	(ii)	acting in concert has the meaning given to it in the City Code on Takeovers and Mergers. 

  

	7.3	Mandatory prepayment – effectiveness of Finance Documents 

  

	(a)	Unless the Facility Agent has already been so notified by another Obligor, each Obligor must notify the Facility Agent promptly if either: 

 

	 	(i)	it is or becomes unlawful for any Obligor (other than the Company) to perform any of its obligations under the Finance Documents; or 

 

	 	(ii)	any Obligor (other than the Company) repudiates a Finance Document or purports to repudiate a Finance Document. 

  

	(b)	After notification under paragraph (a) above: 

  

	 	(i)	the Obligors must repay or prepay each Loan on the date specified in paragraph (c) below; and 

  

	 	(ii)	the Commitments will be immediately cancelled. 

  

	(c)	The date for repayment or prepayment of a Lender’s share in a Loan will be: 

  

	 	(i)	within three Business Days following receipt by the Company of notice from the Facility Agent; or 

  

	 	(ii)	if allowed by the relevant law, the last day of the current Term of that Loan. 

  

	7.4	Mandatory prepayment – Class 1 disposals 

  

	(a)	The Company must promptly notify the Facility Agent if it (or a member of its Group) makes a disposal which would be deemed to be a class 1 transaction under the Listing Rules of the Financial Conduct Authority.

  

	(b)	After notification of a disposal under paragraph (a) above, the Borrower must apply the proceeds of any such disposal (net of Tax and less any costs and expenses reasonably incurred) in prepayment pro rata of each
outstanding Loan on the last day of the then current Term. 

  

	7.5	Mandatory prepayment – Fund Raising 

  

	(a)	The Company must promptly notify the Facility Agent if it (or a member of its Group) undertakes a Relevant Fund Raising. 

  

	(b)	After notification under paragraph (a) above, the Borrower must apply the Fund Raising Proceeds in prepayment pro rata of each outstanding Loan on the last day of the then current Term. 

  
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	7.6	Voluntary prepayment 

  

	(a)	The Company may, by giving not less than five Business Days’ prior notice to the Facility Agent, prepay (or ensure that the Borrower prepays) any Loan made to the relevant Obligor at any time in whole or in part.

  

	(b)	A Loan may only be prepaid after the last day of the Availability Period (or, if earlier, the day on which the Available Commitment is zero). 

 

	(c)	A prepayment of part of a Loan must be in a minimum amount of U.S.$5,000,000 and an integral multiple of U.S.$1,000,000. 

  

	7.7	Automatic cancellation 

 The Commitment of each Lender will be automatically cancelled in full: 

 

	(a)	at the close of business on the last day of the Availability Period; and 

  

	(b)	on the date on which the Syndication Lenders (as defined in the Mandate Letter) become party to the agreement pursuant to which the Refinancing Facilities (as defined in the Mandate Letter) are provided.

  

	7.8	Voluntary cancellation 

  

	(a)	The Company may, by giving not less than five Business Days’ prior notice to the Facility Agent, cancel the unutilised amount of the Commitments in whole or in part. 

 

	(b)	Partial cancellation of the Commitments must be in a minimum amount of U.S.$5,000,000 and an integral multiple of U.S.$1,000,000. 

  

	(c)	Any cancellation in part will be applied against the Commitment of each Lender pro rata. 

  

	7.9	Right of replacement or repayment and cancellation in relation to a single Lender 

  

	(a)	If: 

  

	 	(i)	any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 11.2 (Tax gross-up); or 

 

	 	(ii)	any Lender claims indemnification from the Company under Clause 11.3 (Tax Indemnity) or 12.1 (Increased costs), 

the Company may, while the circumstance giving rise to the requirement for that increase or indemnification continues, give notice to the
Facility Agent requesting prepayment and cancellation in respect of that Lender or give the Facility Agent notice of its intention to replace that Lender in accordance with paragraph (d) below. 

 

	(b)	After notification under paragraph (a) above: 

  

	 	(i)	the Borrower must repay or prepay that Lender’s share in each Loan drawn by it on the date specified in paragraph (c) below; and 

 

	 	(ii)	the Commitments of that Lender will be immediately cancelled and reduced to zero. 

  

	(c)	The date for repayment or prepayment of a Lender’s share in a Loan will be the last day of the current Term for that Loan or, if earlier, the date specified by the Company in its notification. 

  
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	(d)	The Company may, in the circumstances set out in paragraph (a) above, on five Business Days’ prior notice to the Facility Agent and that Lender, replace that Lender by requiring that Lender to (and, to the
extent permitted by law, that Lender shall) transfer pursuant to Clause 27 (Changes to the Parties) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or
other entity selected by the Company which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 27 (Changes to the Parties) for a purchase price in cash payable at the
time of the transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding Loans and all accrued interest (to the extent that the Facility Agent has not given a notification under Clause 27.13 (Pro rata
interest settlement)), Break Costs and other amounts payable in relation thereto under the Finance Documents. 

  

	(e)	The replacement of a Lender pursuant to paragraph (d) above shall be subject to the following conditions: 

  

	 	(i)	the Company shall have no right to replace the Facility Agent; 

  

	 	(ii)	neither the Facility Agent nor any Lender shall have any obligation to find a replacement Lender; and 

  

	 	(iii)	in no event shall the Lender replaced under paragraph (d) above be required to pay or surrender any of the fees received by such Lender pursuant to the Finance Documents; and 

 

	 	(iv)	the Lender shall only be obliged to transfer it rights and obligations pursuant to paragraph (d) above once it is satisfied that it has complied with all necessary know your customer or other similar checks
under all applicable laws and regulations in relation to that transfer. 

  

	7.10	Right of cancellation in relation to a Defaulting Lender 

  

	(a)	If any Lender becomes a Defaulting Lender, the Company may, at any time whilst the Lender continues to be a Defaulting Lender, give the Facility Agent ten Business Days’ notice of cancellation of the Available
Commitment of that Lender. 

  

	(b)	On the notice referred to in paragraph (a) above becoming effective, the Available Commitment of the Defaulting Lender shall immediately be reduced to zero. 

 

	(c)	The Facility Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a) above, notify all the Lenders. 

 

	7.11	Reborrowing of Loans 

 The Borrower may not reborrow any part of the Facility which is prepaid. 

 

	7.12	Miscellaneous provisions 

  

	(a)	Any notice of prepayment and/or cancellation under this Agreement is irrevocable and must specify the relevant date(s) and the affected Loans and Commitments. The Facility Agent must notify the Lenders promptly of
receipt of any such notice. 

  

	(b)	All prepayments under this Agreement must be made with accrued interest on the amount prepaid. No premium or penalty is payable in respect of any prepayment except for Break Costs. 

  
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	(c)	The Facility Agent may agree a shorter notice period for a voluntary prepayment or a voluntary cancellation. 

  

	(d)	No prepayment or cancellation is permitted except in accordance with the express terms of this Agreement. 

  

	(e)	Subject to Clause 2.2 (Increase), no amount of the Total Commitments cancelled under this Agreement may subsequently be reinstated. 

 

	(f)	If all or part of a Loan is repaid or prepaid, an amount of the Commitments (equal to the Dollar Amount of the amount of the Loan which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or
prepayment. Any cancellation under this paragraph (f) shall reduce the Commitments of the Lenders rateably. 

  

	8.	INTEREST 

  

	8.1	Calculation of interest 

 The rate of interest on each Loan for each Term is the percentage rate per
annum equal to the aggregate of the applicable: 
  

	(a)	Margin; and 

  

	(b)	LIBOR. 

  

	8.2	Payment of interest 

 Except where it is provided to the contrary in this Agreement, the Borrower must
pay accrued interest on each Loan made to it on the last day of each Term and also, if the Term is longer than six months, on the dates falling at six monthly intervals after the first day of that Term. 

 

	8.3	Margin adjustments 

  

	(a)	Subject to any applicable calculation of the Margin carried out in accordance with paragraph (b), the Margin shall be as follows: 

  

	 	(i)	until the date falling six months after the first Utilisation Date, 0.50 per cent. per annum; 

  

	 	(ii)	from the date falling six months after the first Utilisation Date until the date falling 12 months after the first Utilisation Date, 0.60 per cent. per annum; 

 

	 	(iii)	from the date falling 12 months after the first Utilisation Date until the date falling 18 months after the first Utilisation Date, 0.70 per cent. per annum; and 

 

	 	(iv)	from the date falling 18 months after the first Utilisation Date until the Final Maturity Date, 0.85 per cent. per annum. 

  

	(b)	Provided that there is no Event of Default outstanding, the Margin will, from the delivery of a Compliance Certificate pursuant to Clause 17.2 (Compliance Certificate), be increased above the relevant rate set
out in paragraph (a) above by the percentage rate per annum set out in the relevant row of column 2 in the table below: 

  
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	 Column 1

Ratio of Consolidated Total Net Borrowings to Consolidated EBITDA
	  	Column 2
per cent. per annum	 
	 Greater than 2.25:1
	  	 	0.30	  
	 Less than or equal to 2.25:1 but greater than 1.50:1
	  	 	0.15	  
	 Less than or equal to 1.50:1
	  	 	0.00	  

  

	(c)	For so long as: 

  

	 	(i)	the Company is in default of its obligation under this Agreement to provide a Compliance Certificate; or 

  

	 	(ii)	an Event of Default is outstanding, 

 the Margin will be increased by 0.30 per cent. per
annum above the relevant rate set out in paragraph (a) above, (for the avoidance of doubt not above the relevant rate set out in column 2 in the table above in paragraph (b) above). 

 

	(d)	Any change to the Margin under this Clause will take effect in relation to a Loan on the second Business Day after delivery of the relevant Compliance Certificate. 

 

	8.4	Interest on overdue amounts 

  

	(a)	If an Obligor fails to pay any amount payable by it under the Finance Documents, it must immediately on demand by the Facility Agent pay interest on the overdue amount from its due date up to the date of actual payment,
both before and after judgment. 

  

	(b)	Interest on an overdue amount is payable in U.S. Dollars at a rate determined by the Facility Agent to be 1 per cent. per annum above the rate which would have been payable if the overdue amount had, during the
period of non payment, constituted a Loan under the Facility to which the overdue amount relates. For this purpose, the Facility Agent may (acting reasonably): 

  

	 	(i)	select successive Terms of any duration of up to three months; and 

  

	 	(ii)	determine the appropriate Rate Fixing Day for that Term. 

  

	(c)	Notwithstanding paragraph (b) above, if the overdue amount is a principal amount of a Loan and becomes due and payable prior to the last day of its current Term, then: 

 

	 	(i)	the first Term for that overdue amount will be the unexpired portion of that Term; and 

  

	 	(ii)	the rate of interest on the overdue amount for that first Term will be 1 per cent. per annum above the rate then payable on that Loan. 

After the expiry of the first Term for that overdue amount, the rate on the overdue amount will be calculated in accordance with paragraph
(b) above. 
  

	(d)	Default interest (if unpaid) on an overdue amount will be compounded with that overdue amount at the end of each of its Terms but will remain immediately due and payable. 

  
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	8.5	Notification of rates of interest 

 The Facility Agent must promptly on the date determined notify each
relevant Party of the determination of a rate of interest under this Agreement. 
  

	9.	TERMS 

  

	9.1	Selection of Terms 

  

	(a)	The Borrower may select the Term for a Loan in the relevant Request for that Loan or (if the Loan has already been borrowed) in a Selection Notice. 

 

	(b)	Each Selection Notice for a Loan is irrevocable and must be delivered to the Facility Agent by the Borrower not later than the Specified Time. 

 

	(c)	If the Borrower fails to deliver a Selection Notice to the Facility Agent in accordance with paragraph (b) above, the relevant Term will be one month. 

 

	(d)	Subject to the other provisions of this Clause 9, three Business Days prior to the expiry of any Term the Borrower may select the next Term for that Loan which shall be of one, two, three or six months or any other
period agreed by the Borrower (or the Company on its behalf) and the Lenders. 

  

	9.2	No overrunning the Final Maturity Date 

 If a Term would otherwise overrun the Final Maturity Date, it
will be shortened so that it ends on the Final Maturity Date. 
  

	9.3	Other adjustments 

 The Facility Agent and the Company may enter into such other arrangements as they may
agree for the adjustment of Terms and the consolidation and/or splitting of Loans. 
  

	9.4	Notification 

 The Facility Agent must notify each relevant Party of the duration of each Term promptly
after ascertaining it. 
  

	10.	MARKET DISRUPTION 

  

	10.1	Failure of a Reference Bank to supply a rate 

 If LIBOR is to be calculated by reference to the Reference
Banks but a Reference Bank does not supply a rate by the Specified Time on a Rate Fixing Day, LIBOR will, subject as provided below, be calculated on the basis of the rates of the remaining Reference Banks. 

 

	10.2	Market disruption 

  

	(a)	In this Clause, each of the following events is a market disruption event: 

  

	 	(i)	LIBOR is to be calculated by reference to the Reference Banks but no, or only one, Reference Bank supplies a rate by 12.00 noon (local time) on the Rate Fixing Day; or 

 

	 	(ii)	 the Facility Agent receives by close of business on the Rate Fixing Day notification from Lenders whose shares in the relevant Loan exceed 40 per
cent. of that Loan that 

  
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the cost to them of obtaining matching deposits in the relevant interbank market is in excess of LIBOR for the relevant Term. 

 

	(b)	The Facility Agent must promptly notify the Company and the Lenders of a market disruption event. 

  

	(c)	After notification under paragraph (b) above, the rate of interest on each Lender’s share in the affected Loan for the relevant Term will be the aggregate of the applicable: 

 

	 	(i)	Margin; and 

  

	 	(ii)	rate notified to the Facility Agent by that Lender as soon as practicable to be that which expresses as a percentage rate per annum the cost to that Lender of funding its share in that Loan from whatever source it may
reasonably select. 

  

	10.3	Confidentiality of Funding Rates and Reference Bank Quotations 

  

	(a)	The Facility Agent and each Obligor agree to keep each Funding Rate (and, in the case of the Facility Agent, each Reference Bank Quotation) confidential and not to disclose it to anyone, save to the extent permitted by
paragraphs (b), (c) and (d) below. 

  

	(b)	The Facility Agent may disclose: 

  

	 	(i)	any Funding Rate (but not, for the avoidance of doubt, any Reference Bank Quotation) to the Company pursuant to Clause 8.5 (Notification of rates of interest); and 

 

	 	(ii)	any Funding Rate or any Reference Bank Quotation to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service
provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With
Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Facility Agent and the relevant Lender or Reference Bank, as the case may be. 

 

	(c)	The Facility Agent may disclose any Funding Rate or any Reference Bank Quotation, and each Obligor may disclose any Funding Rate, to: 

 

	 	(i)	any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives if any person to whom that Funding Rate or Reference Bank Quotation is to be
given pursuant to this paragraph (i) is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional
obligations to maintain the confidentiality of that Funding Rate or Reference Bank Quotation or is otherwise bound by requirements of confidentiality in relation to it; 

 

	 	(ii)	 any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation
or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its
confidential nature and that it may be price-sensitive information except that there shall be no requirement to so 

  
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inform if, in the opinion of the Facility Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; 

 

	 	(iii)	any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom
that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Facility
Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; and 

  

	 	(iv)	any person with the consent of the relevant Lender or Reference Bank, as the case may be. 

  

	(d)	The Facility Agent’s obligations in this Clause 10.3 relating to Reference Bank Quotations are without prejudice to its obligations to make notifications under Clause 8.5 (Notification of rates of interest)
provided that (other than pursuant to paragraph (b)(i) above) the Facility Agent shall not include the details of any individual Reference Bank Quotation as part of any such notification. 

 

	(e)	The Facility Agent and each Obligor acknowledge that each Funding Rate (and, in the case of the Facility Agent, each Reference Bank Quotation) is or may be price-sensitive information and that its use may be regulated
or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Facility Agent and each Obligor undertake not to use any Funding Rate or, in the case of the Facility Agent, any Reference Bank
Quotation for any unlawful purpose. 

  

	(f)	The Facility Agent and each Obligor agree (to the extent permitted by law and regulation) to inform the relevant Lender or Reference Bank, as the case may be: 

 

	 	(i)	of the circumstances of any disclosure made pursuant to paragraph (c)(ii) above except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or
regulatory function; and 

  

	 	(ii)	upon becoming aware that any information has been disclosed in breach of this Clause 10.3. 

  

	10.4	Alternative basis of interest or funding 

  

	(a)	If a market disruption event occurs and the Facility Agent or the Company so requires, the Company and the Facility Agent must enter into negotiations in good faith for a period of not more than thirty (30) days
with a view to agreeing an alternative basis for determining the rate of interest and/or funding for the affected Loan and any future Loan. 

  

	(b)	Any alternative basis agreed will be, with the prior consent of all the Lenders, binding on all the Parties. 

  

	11.	TAXES 

  

	11.1	General 

 In this Clause: 

Borrower DTTP Filing means an HMRC Form DTTP2 duly completed and filed by the Borrower, which: 

  
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	(a)	where it relates to a Treaty Lender that is an Original Lender, contains the scheme reference number and jurisdiction of tax residence stated opposite that Lender’s name in Schedule 1 (The Original
Lenders), and is filed with HMRC within 30 days of the date of this Agreement; or 

  

	(b)	where it relates to a Treaty Lender that is a New Lender or an Increase Lender, contains the scheme reference number and jurisdiction of tax residence stated in respect of that Lender in the relevant Transfer
Certificate or Increase Confirmation, and is filed with HMRC within 30 days of that Transfer Date or the Relevant Increase Date. 

 CTA
means the Corporation Tax Act 2009. 
 HMRC means Her Majesty’s Revenue & Customs. 

ITA means the Income Tax Act 2007. 

Qualifying Lender means: 
  

	(a)	a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is: 

 

	 	(i)	a Lender: 

  

	 	(A)	which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Finance Document and is within the charge to U.K. corporation tax as respects any payments of interest made in respect of
that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or 

  

	 	(B)	in respect of an advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 879 of the ITA) at the time that that advance was made and within the charge to U.K. corporation
tax as respects any payments of interest made in respect of that advance; or 

  

	 	(ii)	a Lender which is: 

  

	 	(A)	a company resident in the U.K. for U.K. tax purposes; 

  

	 	(B)	a partnership each member of which is: 

  

	 	(I)	a company so resident in the U.K.; or 

  

	 	(II)	a company not so resident in the U.K. which carries on a trade in the U.K. through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the
CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or 

  

	 	(C)	a company not so resident in the U.K. which carries on a trade in the U.K. through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits
(within the meaning of section 19 of the CTA) of that company; or 

  

	 	(iii)	a Treaty Lender; or 

  
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	(b)	a Lender which is a building society (as defined for the purpose of section 880 of the ITA) making an advance under a Finance Document. 

Relevant Increase Date means the date on which the increase in Total Commitments described in the relevant Increase Confirmation takes effect.

 Tax Confirmation means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an
advance under a Finance Document is either: 
  

	(a)	a company resident in the U.K. for U.K. tax purposes; 

  

	(b)	a partnership each member of which is: 

  

	 	(i)	a company so resident in the U.K.; or 

  

	 	(ii)	a company not so resident in the U.K. which carries on a trade in the U.K. through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the
CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or 

  

	(c)	a company not so resident in the U.K. which carries on a trade in the U.K. through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits
(within the meaning of section 19 of the CTA) of that company. 

 Tax Credit means a credit against any Tax or any relief or
remission for, or repayment of, any Tax. 
 Tax Deduction means a deduction or withholding for or on account of Tax from a payment under a
Finance Document, other than a FATCA Deduction. 
 Transfer Date has the meaning given to that term in Clause 1.1 (Definitions). 

Treaty Lender means a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document
and which: 
  

	(a)	is treated as a resident of a Treaty State for the purposes of the Treaty; 

  

	(b)	does not carry on a business in the U.K. through a permanent establishment with which that Lender’s participation in the Loan is effectively connected; and 

 

	(c)	meets all other conditions in the relevant Treaty for full exemption from Tax imposed by the U.K. on interest, except that for this purpose it shall be assumed that the following are satisfied: 

 

	 	(i)	any condition which relates (expressly or by implication) to there not being a special relationship between the Borrower and a Lender or between both of them and another person, or to the amounts or terms of any Loan or
the Finance Documents; and 

  

	 	(ii)	any necessary procedural formalities. 

 Treaty State means a jurisdiction having a double
taxation agreement (a Treaty) with the U.K. which makes provision for full exemption from tax imposed by the U.K. on interest. 

  
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 U.K. Non-Bank Lender means, where a Lender becomes a Party after the day on which this
Agreement is entered into, a Lender which gives a Tax Confirmation in the Transfer Certificate which it executes on becoming a Party. 
  

	11.2	Tax gross up 

  

	(a)	Each Obligor must make all payments to be made by it under the Finance Documents without any Tax Deduction, unless a Tax Deduction is required by law. 

 

	(b)	If: 

  

	 	(i)	a Lender is not, or ceases to be, a Qualifying Lender; or 

  

	 	(ii)	an Obligor or a Lender is aware that an Obligor must make a Tax Deduction (or that there is a change in the rate or the basis of a Tax Deduction), 

it must promptly notify the Facility Agent. The Facility Agent must then promptly notify the affected Parties. 

 

	(c)	Except as provided below, if a Tax Deduction is required by law to be made by an Obligor or the Facility Agent, the amount of the payment due from the Obligor will be increased to an amount which (after making the Tax
Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required. 

  

	(d)	An Obligor is not required to make an increased payment under paragraph (c) above by reason of a Tax Deduction if on the date on which the payment falls due: 

 

	 	(i)	the payment could have been made to the relevant Lender without a Tax Deduction if it was a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender in respect of that payment,
unless the altered status results from any change after the later of the date of this Agreement or the date that such Lender becomes a party to this Agreement in (or in the interpretation, administration, or application of) any law or Treaty
agreement or any published practice or concession of any relevant taxing authority; or 

  

	 	(ii)	the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii) of the definition of Qualifying Lender; and 

  

	 	(A)	an officer of HMRC has given (and not revoked) a direction (a Direction) under section 931 of the ITA which relates to the payment and that Lender has received from the Obligor making the payment or from
the Company a certified copy of that Direction; and 

  

	 	(B)	the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made; or 

  

	 	(iii)	the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii) of the definition of Qualifying Lender and: 

  

	 	(A)	the relevant Lender has not given a Tax Confirmation to the Company; and 

  

	 	(B)	 the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Company, on the basis that
the Tax Confirmation would have enabled the Company to have formed a 

  
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reasonable belief that the payment was an “excepted payment” for the purpose of section 930 of the ITA; or 

 

	 	(iv)	the Obligor is able to demonstrate that (subject to completion of any necessary formalities by the Borrower) the Tax Deduction would not have been made if the Lender had complied with its obligations under paragraph
(g) or (h) (as applicable) below. 

  

	(e)	If an Obligor is required to make a Tax Deduction, it must make the minimum Tax Deduction and must make any payment required in connection with that Tax Deduction within the time allowed by law. 

 

	(f)	Within thirty (30) days of making either a Tax Deduction or a payment required in connection with a Tax Deduction, the Obligor must deliver to the Facility Agent for the relevant Finance Party entitled to the
payment a statement under section 975 of the ITA or other evidence satisfactory to that Finance Party (acting reasonably) that the Tax Deduction has been made or (as applicable) the appropriate payment has been paid to the relevant taxing authority.

  

	(g)	     

  

	 	(i)	Subject to paragraph (ii) below, a Lender must co-operate with each Obligor in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction.

  

	 	(ii)	     

  

	 	(A)	A Treaty Lender which becomes a Party on the day on which this Agreement is entered into that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall
confirm its scheme reference number and its jurisdiction of tax residence opposite its name in Schedule 1 (Original Lenders); and 

  

	 	(B)	a New Lender or Increase Lender that is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number
and its jurisdiction of tax residence in the Transfer Certificate or Increase Confirmation which it executes, 

 and, having
done so, that Lender shall be under no obligation pursuant to paragraph (i) above. 
  

	(h)	If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (g)(ii) above and: 

 

	 	(i)	the Borrower making a payment to that Lender has not made a Borrower DTTP Filing in respect of that Lender; or 

  

	 	(ii)	the Borrower making a payment to that Lender has made a Borrower DTTP Filing in respect of that Lender but: 

  

	 	(A)	that Borrower DTTP Filing has been rejected by HMRC; or 

  

	 	(B)	HMRC has not given the Borrower authority to make payments to that Lender without a Tax Deduction within 60 days of the date of the Borrower DTTP Filing, 

  
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 and in each case, the Borrower has notified that Lender in writing, that Lender and the
Borrower shall co-operate in completing any additional procedural formalities necessary for the Borrower to obtain authorisation to make that payment without a Tax Deduction. 
  

	(i)	If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (g)(ii) above, no Obligor shall make a Borrower DTTP Filing or file any other form relating to the
HMRC DT Treaty Passport scheme in respect of that Lender’s Commitment or its participation in any Loan unless the Lender otherwise agrees. 

  

	(j)	The Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower DTTP Filing to the Facility Agent for delivery to the relevant Lender. 

 

	(k)	A UK Non-Bank Lender which becomes a Party on the day on which this Agreement is entered into gives a Tax Confirmation to the Company by entering into this Agreement. 

 

	(l)	A UK Non-Bank Lender shall promptly notify the Company and the Facility Agent if there is any change in the position from that set out in the Tax Confirmation. 

 

	11.3	Tax indemnity 

  

	(a)	Except as provided below, the Company must indemnify a Finance Party against any loss, liability or cost which that Finance Party suffers, or has suffered, directly for or on account of Tax by that Finance Party in
respect of a Finance Document. 

  

	(b)	Paragraph (a) above does not apply to: 

  

	 	(i)	any Tax assessed on a Finance Party if that Tax is imposed on or calculated by reference to the net income received or receivable by that Finance Party. However, any payment deemed to be received or receivable,
including any amount treated as income but not actually received by the Finance Party, such as a Tax Deduction, will not be treated as net income received or receivable for this purpose; 

 

	 	(ii)	any Tax arising under, or attributable to the implementation or application of, or compliance with, the bank levy imposed by the UK Government as set out in the Finance Act 2011 as amended from time to time, or any levy
or Tax of a similar nature imposed in, or by the government of, any jurisdiction, or any other law or regulation which implements such bank levy or any levy or Tax of a similar nature imposed in, or by the government of, any jurisdiction, or any Tax
imposed on a Finance Party by virtue of its status as a bank; 

  

	 	(iii)	any amount compensated for under Clause 11.2 (Tax gross-up) above, or which would have been compensated for under Clause 11.2 (Tax gross-up) above but for an exception to that Clause; or 

 

	 	(iv)	any loss, liability or cost that relates to a FATCA Deduction required to be made by a party. 

  

	(c)	A Finance Party making, or intending to make, a claim under paragraph (a) above must promptly notify the Company of the event which gives, or has given, rise to the claim. 

 

	(d)	A Finance Party shall, on receiving payment from the Company under this Clause 11.3, notify the Facility Agent. 

  
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	11.4	Tax Credit 

  

	(a)	If an Obligor makes a Tax Payment and the relevant Finance Party determines that: 

  

	 	(i)	a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and 

 

	 	(ii)	the relevant Finance Party has used that Tax Credit, 

 the Finance Party must pay an amount to
the Obligor which that Finance Party determines will leave it (after that payment) in the same after tax position as it would have been in if the Tax Payment had not been required to be made by the Obligor. 

 

	(b)	If an Obligor makes a Tax Payment and the relevant Finance Party is a Treaty Lender, that Finance Party shall, in the ordinary course of its dealings with HMRC, take reasonable steps to obtain from HMRC payment of any
amounts to which it may be entitled under the terms of any applicable Treaty in respect of any Tax Deduction from payments to it under any Finance Document and that Finance Party shall pay to the Obligor an amount equal to any such payment received
from HMRC (after deducting any reasonable expenses incurred in obtaining it). 

  

	(c)	No Finance Party shall be obliged to take any such steps as a referred to in paragraph (b) above which may prejudice its right to obtain any other relief or allowance otherwise available to it or to disclose to any
party to a Finance Document any information regarding its Tax affairs and computations. 

  

	11.5	Lender Status Confirmation 

 Each Lender which becomes a Party to this Agreement after the date of this
Agreement shall indicate, in the Transfer Certificate or Increase Confirmation which it executes on becoming a Party, which of the following categories it falls in: 
  

	(a)	not a Qualifying Lender; 

  

	(b)	a Qualifying Lender (other than a Treaty Lender); or 

  

	(c)	a Treaty Lender. 

 If a New Lender fails to indicate its status in accordance with this Clause 11.5 then such
New Lender shall be treated for the purposes of this Agreement (including by each Obligor) as if it is not a Qualifying Lender until such time as it notifies the Facility Agent which category applies (and the Facility Agent, upon receipt of such
notification, shall inform the Company). For the avoidance of doubt, a Transfer Certificate shall not be invalidated by any failure of a Lender to comply with this Clause 11.5. 

 

	11.6	Stamp taxes 

 The Company must pay and indemnify each Finance Party against any U.K. stamp duty, U.K.
registration Tax or other similar U.K. Tax payable in connection with the entry into, performance or enforcement of any Finance Document, except for any such U.K. Tax payable in connection with the entry into of a Transfer Certificate by a Lender.

  
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	11.7	Value added taxes 

  

	(a)	All amounts expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT
which is chargeable on that supply and, accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document and such Finance Party is required to account to
the relevant tax authority for the VAT, that Party must pay to such Finance Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Finance Party must promptly
provide an appropriate VAT invoice to that Party). 

  

	(b)	If VAT is or becomes chargeable on any supply made by any Finance Party (the Supplier) to any other Finance Party (the Recipient) under a Finance Document, and any Party other than the
Recipient (the Relevant Party) is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect
of that consideration): 

  

	 	(i)	(where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to
the amount of the VAT. The Recipient must (where this paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably
determines relates to the VAT chargeable on that supply; and 

  

	 	(ii)	(where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT
chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT. 

 

	(c)	Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such
cost or expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority. 

 

	(d)	Any reference in this Clause 11.7 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to
the representative member of such group at such time (the term “representative member” to have the same meaning as in the Value Added Tax Act 1994). 

  

	(e)	In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must promptly provide such Finance Party with details of that
Party’s VAT registration and such other information as is reasonably requested in connection with such Party’s VAT reporting requirements in relation to such supply. 

 

	11.8	FATCA Information 

  

	(a)	Subject to paragraph (c) below, each Finance Party shall, within ten Business Days of a reasonable request by another Party: 

  
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	 	(i)	confirm to that other Party and the Facility Agent whether it is: 

  

	 	(A)	a FATCA Exempt Party; or 

  

	 	(B)	not a FATCA Exempt Party; and 

  

	 	(ii)	supply to that other Party and the Facility Agent such forms, documentation and other information relating to its status under FATCA (including its applicable passthru payment percentage or other information required
under the US Treasury Regulations or other official guidance including intergovernmental agreements) as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA. 

 

	(b)	If a Finance Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that Finance
Party shall notify that other Party and the Facility Agent reasonably promptly. 

  

	(c)	Paragraph (a) above shall not oblige any Finance Party to do anything which would or might in its reasonable opinion constitute a breach of: 

 

	 	(i)	any law or regulation; 

  

	 	(ii)	any fiduciary duty; or 

  

	 	(iii)	any duty of confidentiality. 

  

	(d)	If a Finance Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with paragraph (a) above (including, for the avoidance of doubt, where paragraph
(c) above applies), then: 

  

	 	(i)	if that Finance Party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such Finance Party shall be treated for the purposes of the Finance Documents as if it is not a FATCA Exempt Party; and

  

	 	(ii)	if that Finance Party failed to confirm its applicable passthru payment percentage then such Finance Party shall be treated for the purposes of the Finance Documents (and payments made thereunder) as if its applicable
passthru payment percentage is 100%, 

 until (in each case) such time as the Finance Party in question provides the requested
confirmation, forms, documentation or other information. 
  

	11.9	FATCA Deduction 

  

	(a)	Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it
makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. 

  

	(b)	Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the Party to whom it is making the payment and, in
addition, shall notify the Company, the Facility Agent and the other Finance Parties. 

  
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	12.	INCREASED COSTS 

  

	12.1	Increased Costs 

 Except as provided below in this Clause, the Company must pay to a Finance Party the
amount of any Increased Cost incurred by that Finance Party or any of its Affiliates as a result of: 
  

	(a)	the introduction of, or any change in, or any change in the interpretation, administration or application of, any law or regulation; or 

 

	(b)	compliance with any law or regulation, 

 in each case made after the date of this Agreement; or 

 

	(c)	the implementation or application of or compliance with Basel III or any other law or regulation which implements Basel III (whether such implementation, application or compliance is by a government, regulator, Finance
Party or any of its Affiliates). 

  

	12.2	Exceptions 

 The Company need not make any payment for an Increased Cost to the extent that the Increased
Cost is: 
  

	(a)	attributable to a Tax Deduction required by law to be made by an Obligor; 

  

	(b)	attributable to a FATCA Deduction required to be made by a Party; 

  

	(c)	compensated for under another Clause, or would have been but for an exception to that Clause; 

  

	(d)	a tax on the overall net income of a Finance Party or any of its Affiliates; 

  

	(e)	attributable to a Finance Party or its Affiliates wilfully or grossly negligently failing to comply with any law or regulation; 

  

	(f)	not claimed in the manner set out in Clause 12.3 (Claims) below; or 

  

	(g)	attributable to the implementation or application of or compliance with the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on
Banking Supervision in June 2004 in the form existing on the date of this Agreement (but excluding any amendment arising out of Basel III (other than as excluded under Clause 12.4 (Basel III Costs) below) (Basel II).

  

	12.3	Claims 

 A Finance Party intending to make a claim for an Increased Cost must, within 180 days of
becoming aware of the circumstances giving rise to such a claim, notify the Company in writing of such circumstances setting out in detail the basis of calculation of such a claim. 

 

	12.4	Basel III Costs 

 The Company need not make any payment for a Basel III Cost unless the claiming Finance
Party: 
  

	(a)	 provides reasonable detail of the basis of calculation of such Basel III Costs provided that this obligation to provide reasonable detail does not
extend to information and detail that a Finance Party is not legally allowed to disclose, is confidential to third parties (including any 

  
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information that is confidential to a Finance Party’s organisation or affairs) or price-sensitive in relation to listed shares or other instruments issued by that Finance Party or any of its
Affiliates; 

  

	(b)	confirms to the Company that it is the Finance Party’s policy to claim Basel III Costs to a similar extent from similar borrowers in relation to similar facilities; and 

 

	(c)	confirms to the Company that it is making a claim for Basel III Costs within 180 days of incurring them. 

 For
the purpose of this Clause 12: 
 Basel III means: 
  

	(a)	the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III:
International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December
2010, each as amended, supplemented or restated; 

  

	(b)	the rules for global systemically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirement – Rules text” published by the
Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and 

  

	(c)	any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”. 

Basel III Cost means any Increased Cost attributable to the implementation or application of or compliance with Basel III. 

 

	13.	MITIGATION 

  

	13.1	Mitigation 

  

	(a)	Each Finance Party must, in agreement with the Company, take all reasonable steps to mitigate any circumstances which arise and which result or would result in: 

 

	 	(i)	any Tax Payment or any claim under Clause 12.1 (Increased Costs) being payable to that Finance Party; or 

  

	 	(ii)	that Finance Party being able to exercise any right of prepayment and/or cancellation under this Agreement by reason of any illegality, 

including transferring its rights and obligations under the Finance Documents to an Affiliate or changing its Facility Office. 

 

	(b)	The Company must indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of any step taken by it under this Clause. 

 

	(c)	A Finance Party is not obliged to take any step under this Clause if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it. 

  
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	13.2	Conduct of business by a Finance Party 

 No term of this Agreement will: 

 

	(a)	interfere with the right of any Finance Party to arrange its affairs (Tax or otherwise) in whatever manner it thinks fit; 

  

	(b)	subject to Clause 11.4(b) (Tax Credit), oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it in respect of Tax or the extent, order and manner of any claim;
or 

  

	(c)	oblige any Finance Party to disclose any information relating to its affairs (Tax or otherwise) or any computation in respect of Tax. 

 

	14.	PAYMENTS 

  

	14.1	Place 

 Unless a Finance Document specifies that payments under it are to be made in another manner, all
payments by a Party (other than the Facility Agent) under the Finance Documents must be made to the Facility Agent to its account at such office or bank in the principal financial centre of the U.S. as it may notify to that Party for this purpose by
not less than five Business Days’ prior notice. 
  

	14.2	Funds 

 Payments under the Finance Documents to the Facility Agent must be made for value on the due date
at such times and in such funds as the Facility Agent may specify to the Party concerned as being customary at the time for the settlement of transactions in U.S. Dollars in the place for payment. 

 

	14.3	Currency 

 Unless a Finance Document specifies that payments under it are to be made in a different
manner, the currency of each amount payable under the Finance Documents shall be U.S. Dollars. 
  

	14.4	Distribution 

  

	(a)	Each payment received by the Facility Agent under the Finance Documents for another Party must, except as provided below, be made available by the Facility Agent to that Party by payment (as soon as practicable after
receipt) to its account with an office or bank in New York. 

  

	(b)	The Facility Agent may (with the consent and at the expense of the relevant Obligor) apply any amount received by it for an Obligor in or towards payment (as soon as practicable after receipt) of any amount due from
that Obligor under the Finance Documents. 

  

	(c)	Where a sum is paid to the Facility Agent under this Agreement for another Party, the Facility Agent is not obliged to pay that sum to that Party until it has established that it has actually received it. However, the
Facility Agent may assume that the sum has been paid to it, and, in reliance on that assumption, make available to that Party a corresponding amount. If it transpires that the sum had not been made available, that Party must immediately on demand by
the Facility Agent refund any corresponding amount made available to it together with interest on that amount from the date of payment to the date of receipt by the Facility Agent at a rate calculated by the Facility Agent to reflect its cost of
funds. 

  
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	14.5	No set off or counterclaim 

 All payments made by an Obligor under the Finance Documents must be made
without set off or counterclaim. 
  

	14.6	Business Days 

  

	(a)	If a payment under the Finance Documents is due on a day which is not a Business Day, the due date for that payment will instead be the next Business Day in the same calendar month (if there is one) or the preceding
Business Day (if there is not). 

  

	(b)	During any extension of the due date for payment of any principal under this Agreement interest is payable on that principal at the rate payable on the original due date. 

 

	14.7	Impaired Agent 

  

	(a)	If, at any time, the Facility Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Facility Agent in accordance with Clause 14.1 (Place)
may instead either pay that amount direct to the required recipient or pay that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the
Obligor or the Lender making the payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents. In each case such payments must be made on the due date for payment
under the Finance Documents. 

  

	(b)	All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the beneficiaries of that trust account pro rata to their respective entitlements. 

 

	(c)	A Party which has made a payment in accordance with this Clause shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing
to the credit of the trust account. 

  

	(d)	Promptly upon the appointment of a successor Facility Agent in accordance with Clause 21.14 (Replacement of the Facility Agent), each Party which has made a payment to a trust account in accordance with this
Clause shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Facility Agent for distribution in accordance with Clause 14.4
(Distribution). 

  

	14.8	Partial payments 

  

	(a)	If the Facility Agent receives a payment insufficient to discharge all the amounts then due and payable by the Obligors under the Finance Documents, the Facility Agent must apply that payment towards the obligations of
the Obligors under the Finance Documents in the following order: 

  

	 	(i)	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Facility Agent under the Finance Documents; 

  

	 	(ii)	secondly, in or towards payment pro rata of any accrued interest or fee due but unpaid under this Agreement; 

  

	 	(iii)	thirdly, in or towards payment pro rata of any principal amount due but unpaid under this Agreement; and 

  
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	 	(iv)	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

  

	(b)	The Facility Agent must, if so directed by all the Lenders, vary the order set out in sub paragraphs (a)(ii) to (iv) above. 

  

	(c)	This Clause will override any appropriation made by an Obligor. 

  

	14.9	Timing of payments 

 If a Finance Document does not provide for when a particular payment is due, that
payment will be due within three Business Days of demand by the relevant Finance Party. 
  

	15.	GUARANTEE AND INDEMNITY 

  

	15.1	Guarantee and indemnity 

 Each Guarantor jointly and severally (if there is more than one Guarantor) and
irrevocably and unconditionally: 
  

	(a)	guarantees to each Finance Party punctual performance by each Obligor of all its payment obligations under the Finance Documents; 

  

	(b)	undertakes with each Finance Party that, whenever an Obligor does not pay any amount when due under any Finance Document, that Guarantor must immediately on demand by the Facility Agent pay that amount as if it were the
principal obligor; 

  

	(c)	agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on
demand against any cost, loss or liability it incurs as a result of an Obligor not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would
have been due. The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 15 if the amount claimed had been recoverable on the basis of a guarantee; and 

 

	(d)	agrees that: 

  

	 	(i)	this is a guarantee of payment and not a guarantee of collection; 

  

	 	(ii)	its obligations under this guarantee are independent of the validity or enforceability of any or all of the obligations of any or all of the Obligors; and 

 

	 	(iii)	a separate action may be brought and prosecuted against that Guarantor whether or not any action is brought against any or all of the Obligors. 

 

	15.2	Continuing guarantee 

 This guarantee is a continuing guarantee and will extend to the ultimate balance
of all sums payable by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part. This guarantee will enure to the benefit of any New Lender (as defined in Clause 27 (Changes to the
Parties)) to which has been assigned or transferred (including by way of novation) any or all of the rights and/or obligation of a Lender under this Agreement. 

  
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	15.3	Reinstatement 

 If any discharge, release or arrangement (whether in respect of the obligations of any
Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored on insolvency, liquidation, administration or
otherwise, without limitation, then the liability of each Guarantor under this Clause 15 will continue or be reinstated as if the discharge, release or arrangement had not occurred. 

 

	15.4	Waiver of defences 

 The obligations of each Guarantor under this Clause will not be affected by any act,
omission or thing which, but for this provision, would reduce, release or prejudice any of its obligations under this Clause (whether or not known to it or any Finance Party). This includes: 

 

	(a)	any time or waiver granted to, or composition with, any person; 

  

	(b)	any release of any person under the terms of any composition or arrangement; 

  

	(c)	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any person; 

 

	(d)	any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; 

 

	(e)	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of any person; 

  

	(f)	any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of a Finance Document or any other document or security, including without limitation, any
change in the purpose of, any extension of or increase in any facility or the addition of any new facility under any Finance Document or other document or security; 

 

	(g)	any unenforceability, illegality, invalidity or non-provability of any obligation of any person under any Finance Document or any other document or security; or 

 

	(h)	any insolvency or similar proceeding relating to any Obligor. 

  

	15.5	Guarantor intent 

 Without prejudice to the generality of Clause 15.4 (Waiver of defences), each
Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made
available under any of the Finance Documents for the purposes of or in connection with any of the following: business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings;
refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and
any fees, costs and/or expenses associated with any of the foregoing. 

  
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	15.6	Immediate recourse 

 Each Guarantor waives any right it may have of first requiring any Finance Party (or
any trustee or agent on its behalf) to proceed against or enforce any other right or security or claim payment from any person before claiming from that Guarantor under this Clause. 

 

	15.7	Appropriations 

 Until all amounts which may be or become payable by the Obligors under the Finance
Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may without affecting the liability of any Guarantor under this Clause: 

 

	(a)	refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts; or 

 

	(b)	apply and enforce them in such manner and order as it sees fit (whether against those amounts or otherwise); and 

  

	(c)	hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of that Guarantor’s liability under this Clause. 

 

	15.8	Non-competition 

 Unless: 
  

	(a)	all amounts which may be or become payable by the Obligors under the Finance Documents have been irrevocably paid in full; or 

  

	(b)	the Facility Agent otherwise directs, 

 no Guarantor will, after a claim has been made or by virtue of any
payment or performance by it under this Clause: 
  

	 	(i)	be subrogated to any rights, security or moneys held, received or receivable by any Finance Party (or any trustee or agent on its behalf); 

 

	 	(ii)	be entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of that Guarantor’s liability under this Clause; 

 

	 	(iii)	claim, rank, prove or vote as a creditor of any Obligor or its estate in competition with any Finance Party (or any trustee or agent on its behalf); or 

 

	 	(iv)	receive, claim or have the benefit of any payment, distribution or security from or on account of any Obligor, or exercise any right of set-off as against any Obligor. 

Each Guarantor must hold in trust for and immediately pay or transfer to the Facility Agent for the Finance Parties any payment or distribution
or benefit of security received by it contrary to this Clause or in accordance with any directions given by the Facility Agent under this Clause. 
  

	15.9	Additional security 

 This guarantee is in addition to and is not in any way prejudiced by any other
security now or subsequently held by any Finance Party. 

  
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	16.	REPRESENTATIONS 

  

	16.1	Representations 

 The representations set out in Clauses 16.2 (Status) to 16.14 (Sanctions) are
made by each Obligor or (if it so states) the Company to each Finance Party. 
  

	16.2	Status 

  

	(a)	It is a limited liability company, duly incorporated and validly existing under the laws of its jurisdiction of incorporation. 

  

	(b)	It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted. 

  

	16.3	Powers and authority 

 It has the power to enter into and perform, and has taken all necessary corporate
action to authorise the entry into and performance of, the Finance Documents to which it is or will be a party. 
  

	16.4	Legal validity 

 Subject to any general principles of law limiting its obligations and referred to in any
legal opinion required under this Agreement, each Finance Document to which it is a party is its legally binding, valid and enforceable obligation. 
  

	16.5	Non conflict 

 The entry into and performance by it of the Finance Documents do not conflict with: 

 

	(a)	any law or regulation applicable to it; or 

  

	(b)	its constitutional documents; or 

  

	(c)	at the date of this Agreement, any document which is binding upon it or any of its Material Subsidiaries or any of its or its Material Subsidiaries’ assets. 

 

	16.6	No default 

  

	(a)	No Event of Default is outstanding or will result from the execution of, or the performance of any transaction contemplated by, any Finance Document; and 

 

	(b)	no other event is outstanding which constitutes a default under any document which is binding on it or any of its Subsidiaries or any of its or its Subsidiaries’ assets to an extent or in a manner which is
reasonably likely to have a Material Adverse Effect. 

  

	16.7	Authorisations 

 All authorisations required by it in connection with the entry into, performance,
validity and enforceability of, and the transactions contemplated by, the Finance Documents have been or will have been by the date of delivery of the first Request, obtained or effected (as appropriate) and are, or will be by the date of delivery
of the first Request, in full force and effect. 

  
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	16.8	Financial statements 

 In the case of each Obligor which has provided audited consolidated financial
statements pursuant to Clause 17.1 (Financial statements), those financial statements most recently delivered to the Facility Agent (which, at the date of this Agreement, are the Original Financial Statements): 

 

	(a)	have been prepared in accordance with accounting principles and practices generally accepted in its jurisdiction of incorporation, consistently applied; and 

 

	(b)	give a true and fair view of its consolidated financial condition as at the date to which they were drawn up, 

except, in each case, as disclosed to the contrary in those financial statements. 
  

	16.9	No material adverse change 

 In the case of the Company only, as at the date of this Agreement, there has
been no material adverse change in its consolidated financial condition since the date to which the Original Financial Statements were drawn up which is likely to have a Material Adverse Effect. 

 

	16.10	Litigation 

 No litigation, arbitration or administrative proceedings are current or, to its knowledge,
pending or threatened in writing, which are reasonably likely to have a Material Adverse Effect. 
  

	16.11	Information 

  

	(a)	All material factual information supplied by the Company to any Finance Party in writing was accurate in all material respects as at the date to which it was prepared; 

 

	(b)	as at its date and to the best of its knowledge, the opinions, projections and forecasts supplied by the Company to any Finance Party and the assumptions on which they were based were arrived at after due and careful
consideration and genuinely represented its views; and 

  

	(c)	to the best of its knowledge there are no material facts or circumstances which have not been disclosed to the parties to this Agreement by the Company prior to the date of this Agreement and which would make any of the
information, opinions, projections, forecasts or assumptions supplied by the Company inaccurate or misleading in any material respect. 

  

	16.12	ERISA 

 No ERISA Events have occurred with respect to any Obligor or any of its ERISA Affiliates, except
as would not reasonably be likely to have a Material Adverse Effect. 
  

	16.13	Margin Stock 

  

	(a)	No part of the Loan, or any proceeds of any extension of credit hereunder, will be used immediately, directly, indirectly, incidentally or ultimately for any purpose that entails a violation (including on the part of
any Finance Party) of, or that is inconsistent with, the provisions of the Margin Regulations. 

  

	(b)	 After applying the proceeds of any Loan or other extension of credit hereunder, not more than 25 per cent. of the value of the assets (as
determined by the Company using reasonable methods within the purview of the Margin Regulations) of the Company and its Subsidiaries that are subject to the provisions of Clause 7.4 (Mandatory prepayment – Class 1 disposals), Clause 19.7
(Negative pledge) or Clause 19.8 (Disposals), or otherwise subject to any similar 

  
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restriction contained in any agreement or instrument between the Borrower and a Lender, or any Affiliate of any Lender relating to Financial Indebtedness, consists of Margin Stock.

  

	16.14	Sanctions 

 None of the Obligors, any Subsidiary thereof or any of their respective directors or officers
is a Sanctioned Person. 
  

	16.15	Times for making representations 

  

	(a)	The representations set out in this Clause are made on the date of this Agreement. 

  

	(b)	The representations in Clauses 16.2 (Status) to 16.5(b) (Non-conflict) (inclusive), 16.6 (No default) to 16.8 (Financial Statements) (inclusive) and 16.12 (ERISA) (together, the
Term Representations) and Clause 16.13 (the Margin Stock Representation) are deemed to be repeated by: 

  

	 	(i)	each Additional Guarantor and the Company on the date that Additional Guarantor becomes an Obligor; and 

  

	 	(ii)	each Obligor on the date of each Request and: 

  

	 	(A)	in respect of the Term Representations, on the first day of each Term of a Loan; and 

  

	 	(B)	in respect of the Margin Stock Representation, on the Utilisation Date. 

  

	(c)	When a representation is repeated, it is applied to the circumstances existing at the time of repetition. 

  

	17.	INFORMATION COVENANTS 

  

	17.1	Financial statements 

  

	(a)	The Company must supply to the Facility Agent in sufficient copies for all the Lenders: 

  

	 	(i)	its audited consolidated financial statements for each of its financial years; 

  

	 	(ii)	if required to be produced by applicable law, the audited financial statements of each Obligor for each of its financial years; and 

  

	 	(iii)	its interim consolidated financial statements for the first half year of each of its financial years. 

  

	(b)	All financial statements must be supplied to the Facility Agent at the same time as they are dispatched by the Company to its shareholders following the end of the relevant financial period. 

 

	17.2	Compliance Certificate 

  

	(a)	The Company must supply to the Facility Agent a Compliance Certificate: 

  

	 	(i)	in the case of the Company’s audited consolidated financial statements, within 180 days; and 

  
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	 	(ii)	in the case of the Company’s interim consolidated financial statements, within 120 days 

of the end of the relevant financial period. 
  

	(b)	A Compliance Certificate is a certificate substantially in the form of Schedule 7 (Form of Compliance Certificate) setting out, among other things, calculations of the financial covenants. 

 

	(c)	A Compliance Certificate must be signed by two authorised signatories of the Company. 

  

	17.3	Form of financial statements 

  

	(a)	The Company must ensure that each set of financial statements supplied under this Agreement fairly represents the relevant Obligor’s financial condition (consolidated or otherwise) as at the date to which those
financial statements were drawn up. 

  

	(b)	The Company must notify the Facility Agent of any material change to the basis on which its audited consolidated financial statements are prepared. 

 

	(c)	If requested by the Facility Agent, the Company must supply to the Facility Agent: 

  

	 	(i)	a full description of any change notified under paragraph (b) above; and 

  

	 	(ii)	sufficient information to enable the Finance Parties to make a proper comparison between the financial position shown by the set of financial statements prepared on the changed basis and its most recent audited
consolidated financial statements delivered to the Facility Agent under this Agreement in so far as it impacts the financial covenants under Clause 18 (Financial Covenants). 

 

	(d)	If requested by the Facility Agent, the Company must enter into discussions for a period of not more than 30 days with a view to agreeing any amendments required to be made to this Agreement to place the Company and the
Lenders in the same position as they would have been in if the change had not happened. Any agreement between the Company and the Facility Agent will be, with the prior consent of the Majority Lenders, binding on all the Parties. 

 

	(e)	If no agreement is reached under paragraph (d) above on the required amendments to this Agreement, the Company must ensure that its auditors certify those amendments which would be necessary to place the Company
and the Lenders in the same position as they would have been in if the change had not happened; the certificate of the auditors will be, in the absence of manifest error, binding on all the Parties and the certified amendments shall be deemed to be
incorporated into this Agreement. 

  

	17.4	Information – miscellaneous 

 The Company must supply to the Facility Agent: 

 

	(a)	copies of all documents despatched by the Company to its shareholders (or any class of them) or its creditors generally at the same time as they are despatched; 

 

	(b)	promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which: 

  

	 	(i)	are current, threatened in writing or pending; 

  
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	 	(ii)	are reasonably likely to be adversely determined; and 

  

	 	(iii)	would, if adversely determined, have a Material Adverse Effect; 

  

	(c)	promptly on request, a list of the then current Material Subsidiaries; and 

  

	(d)	as soon as reasonably practicable (but in any case by no later than two Business Days) after the Closing Date, a written notice that the Closing Date has occurred. 

 

	17.5	“Know Your Customer” checks 

  

	(a)	The Company shall promptly upon the request of the Facility Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on
behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Facility Agent, such Lender or any prospective new Lender to carry out and be satisfied with the results of all necessary “know your
customer” or other checks in relation to any person that it is required to carry out pursuant to the transactions contemplated in the Finance Documents. 

  

	(b)	Each Lender shall promptly upon the request of the Facility Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself) in order for the
Facility Agent to carry out and be satisfied with the result of all necessary “know your customer” or other checks in relation to any person that it is required to carry out pursuant to the transactions contemplated in the Finance
Documents. 

  

	17.6	Notification of Default 

 Unless the Facility Agent has already been so notified by another Obligor, each
Obligor must notify the Facility Agent of any Event of Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence. 
  

	18.	FINANCIAL COVENANTS 

  

	18.1	Definitions 

 In this Clause: 

Consolidated Cash and Cash Equivalents means, at any time, the aggregate of the following: 

 

	(a)	cash in hand or on deposit with any Acceptable Bank, which, in either case, is not subject to any security interest and is readily remittable to the U.K or capable of being applied against Consolidated Total Borrowings;

  

	(b)	certificates of deposit, maturing within one year after the relevant date of calculation, issued by an Acceptable Bank; 

  

	(c)	any investment in marketable obligations issued or guaranteed by the government of the United States of America or the U.K. or by an instrumentality or agency of the government of the United States of America or the
U.K. having an equivalent credit rating; 

  

	(d)	any investment in debt instruments permitting cash withdrawals on not more than one month’s notice and which have a rating of A or higher by Standard and Poor’s or Fitch or A2 or higher by Moody’s;

  

	(e)	open market commercial paper: 

  
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	 	(i)	for which a recognised trading market exists; 

  

	 	(ii)	issued in the United States of America or the U.K.; 

  

	 	(iii)	which matures within one year after the relevant date of calculation; and 

  

	 	(iv)	which has a credit rating of either A-1 by Standard & Poor’s or Fitch or P-1 by Moody’s, or, if no rating is available in respect of the commercial paper or indebtedness, the issuer of which has, in
respect of its long term debt obligations, an equivalent rating; 

  

	(f)	debt securities eligible for rediscount at the Bank of England and accepted by an Acceptable Bank; 

  

	(g)	any cash deposited as collateral against any Consolidated Total Borrowings up to the maximum amount of those Consolidated Total Borrowings; or 

 

	(h)	any other instrument, security or investment approved by the Majority Lenders, 

 in each case, to which any
member of the Group is beneficially entitled at that time and which is capable of being applied against Consolidated Total Borrowings. 
 Any amount
outstanding in a currency other than U.S. Dollars is to be taken into account at its Dollar equivalent calculated on the basis of: 
  

	 	(i)	the Agent’s Dollar Rate of Exchange; or 

  

	 	(ii)	if the amount is to be calculated on the last day of a financial period of the Company, the rate of exchange used by the Company in its financial statements for that last day of the financial period. However, if by
using this rate the Company does not comply with any term of this Clause 18, the Company may apply the average rate of exchange used by the Company in its financial statements for that period instead. 

Consolidated EBITA means Consolidated EBITDA for a Measurement Period adjusted by deducting depreciation. 

Consolidated EBITDA means the consolidated net pre-taxation profits of the Group for a Measurement Period, adjusted by: 

 

	(a)	adding back Consolidated Net Interest Payable; 

  

	(b)	adding back any other finance costs included in consolidated net pre-taxation profits; 

  

	(c)	taking no account of any exceptional or extraordinary item; 

  

	(d)	adding back the profit and loss effect of any adjustment to the carrying value of inventory or any other asset or liability arising from purchase accounting adjustments, to the extent that any such adjustment (in whole
or part) is included in consolidated net pre-taxation profits; 

  

	(e)	adding back depreciation and amortisation; 

  

	(f)	adding back any charges in respect of share based payments; and 

  

	(g)	including the EBITDA (calculated on the same basis as Consolidated EBITDA, mutatis mutandis) of any member of the Group treated as held for sale. 

  
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 Consolidated Interest Payable means all interest and recurring financing charges including
acceptance commission, commitment fees (but excluding for the avoidance of doubt any one-off or up-front fees), the interest element of rental payments on finance or capital leases (whether, in each case, paid or payable) and any other finance costs
having the nature of interest included in consolidated pre-taxation profits, incurred by the Group in effecting, servicing or maintaining Consolidated Total Borrowings during a Measurement Period, after taking into account any amount relating to the
current Measurement Period in respect of any interest rate hedging transactions in respect of the Consolidated Total Borrowings whether or not designated as IAS 39 hedges. 

Consolidated Net Interest Payable means Consolidated Interest Payable less all interest and financing charges received or receivable by the
Group during the relevant Measurement Period. 
 Consolidated Total Borrowings means, in respect of the Group, at any time the aggregate of
the following: 
  

	(a)	the outstanding principal amount of any moneys borrowed; 

  

	(b)	the outstanding principal amount of any acceptance under any acceptance credit; 

  

	(c)	the outstanding principal amount of any bond, note, debenture, loan stock or other similar instrument; 

  

	(d)	the capitalised element of indebtedness under a finance or capital lease as defined in accordance with accounting principles applied in preparation of the Original Financial Statements; 

 

	(e)	the outstanding principal amount of all moneys owing in connection with the sale or discounting of receivables (otherwise than on a non recourse basis); 

 

	(f)	the outstanding principal amount of any indebtedness arising from any deferred payment agreements arranged primarily as a method of raising finance or financing the acquisition of an asset; 

 

	(g)	any fixed or minimum premium due and payable on the repayment or redemption of any instrument referred to in paragraph (c) above; 

 

	(h)	the outstanding principal amount of any indebtedness arising in connection with any other transaction (including any forward sale or purchase agreement) which has the commercial effect of a borrowing; 

 

	(i)	the outstanding principal amount of any indebtedness of any person who is not a member of the Group of a type referred to in paragraphs (a) to (h) above which is the subject of a guarantee, indemnity or
similar assurances against financial loss provided by a member of the Group; and 

  

	(j)	the value of any assets or liabilities arising from the mark-to-market valuation of any derivative financial instruments in respect of currency hedging on Consolidated Total Borrowings which gives rise to balance sheet
assets or liabilities. 

 Any amount outstanding in a currency other than U.S. Dollars is to be taken into account at its Dollar equivalent
calculated on the basis of: 
  

	 	(i)	the Agent’s Dollar Rate of Exchange; or 

  
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	 	(ii)	if the amount is to be calculated on the last day of a financial period of the Company, the rate of exchange used by the Company in its financial statements for that last day of the financial period. However, if by
using this rate the Company does not comply with any term of this Clause 18, the Company may apply the average rate of exchange used by the Company in its financial statements for that period instead. 

Consolidated Total Net Borrowings means at any time Consolidated Total Borrowings less Consolidated Cash and Cash Equivalents. 

Measurement Period means a period of 12 months ending on a Testing Date. 

Testing Date means the last day of a financial year or financial half year of the Company. 

 

	18.2	Interpretation 

  

	(a)	Except as provided to the contrary in this Agreement, an accounting definition used in this Clause is to be construed in accordance with the accounting principles applied in accordance with the Original Financial
Statements. 

  

	(b)	No item shall be credited or deducted more than once in any calculation under this Clause. 

  

	(c)	For the purpose of calculation of ‘Gearing’ pursuant to Clause 18.3 (Gearing) only: 

  

	 	(i)	there shall be included in determining Consolidated EBITDA for any Measurement Period (including that portion thereof occurring prior to the relevant acquisition) the EBITDA (calculated on the same basis as Consolidated
EBITDA, mutatis mutandis) of any material person, property, business or fixed asset acquired by any member of the Group during such Measurement Period as if they were acquired as of the first day of that Measurement Period; and

  

	 	(ii)	there shall be excluded in determining Consolidated EBITDA for any Measurement Period the EBITDA (calculated on the same basis as Consolidated EBITDA, mutatis mutandis) of any material person, property, business
or fixed asset sold by any member of the Group during such Measurement Period (including that portion thereof occurring prior to the relevant disposal) as if they were disposed of as of the first day of that Measurement Period. 

For the avoidance of doubt, there shall be no corresponding adjustments to Consolidated EBITA for the purposes of calculating ‘Interest
Cover’ pursuant to Clause 18.4 (Interest Cover). 
  

	18.3	Gearing 

 The Company must ensure that the ratio of Consolidated Total Net Borrowings (as at each Testing
Date) to Consolidated EBITDA (for the Measurement Period ending on that Testing Date) is not more than 3:1. 
  

	18.4	Interest cover 

 The Company must ensure that on each Testing Date the ratio of Consolidated EBITA to
Consolidated Net Interest Payable for the Measurement Period ending on that Testing Date is not less than 3:1. 

  
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	19.	GENERAL COVENANTS 

  

	19.1	General 

 Each Obligor agrees to be bound by the covenants set out in this Clause relating to it and,
where the covenant is expressed to apply to each member or to specified members of the Group, each Obligor must ensure that each of its Subsidiaries to which the covenant relates performs that covenant. 

 

	19.2	Authorisations 

 Each Obligor must promptly obtain, maintain and comply with the terms of any
authorisation required under any law or regulation to enable it to perform its obligations under, or for the validity or (subject to any general principles of law limiting its obligations and referred to in any legal opinion required under this
Agreement) enforceability of, any Finance Document. 
  

	19.3	Compliance with laws 

 Each member of the Group must comply in all respects with all laws and regulations
to which it is subject where failure to do so is reasonably likely to have a Material Adverse Effect. 
  

	19.4	Compliance with ERISA 

 No Obligor shall allow, or permit any of its ERISA Affiliates to allow, any ERISA
Event to occur with respect to any Plan to the extent that any ERISA Event, individually or when aggregated with all other ERISA Events, is reasonably likely to have a Material Adverse Effect. 

 

	19.5	Use of proceeds 

 No Obligor will request any Utilisation, and no Obligor shall use, and shall procure
that its Subsidiaries shall not use, the proceeds of any Utilisation: 
  

	(a)	in furtherance of an offer, payment, promise to pay, or authorisation of the payment or giving of money, or anything else of value, to any person in violation of any Anti-Corruption Laws; 

 

	(b)	for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country; or 

 

	(c)	in any manner that would result in the violation of any Sanctions applicable to any Party. 

  

	19.6	Pari passu ranking 

 Each Obligor must ensure that its payment obligations under the Finance Documents
rank at least pari passu with all its other present and future unsecured payment obligations, except for obligations mandatorily preferred by law applying to companies generally. 

 

	19.7	Negative pledge 

  

	(a)	In this Clause, Security Interest means any mortgage, pledge, lien, charge, assignment, hypothecation or security interest. 

 

	(b)	Except as provided below, no member of the Group may create or allow to exist any Security Interest on any of its assets. 

  

	(c)	Paragraph (b) does not apply to: 

  
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	 	(i)	any Security Interest comprising a netting, set off or lien arrangement entered into by a member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

  

	 	(ii)	any lien arising by operation of law and in the ordinary course of business; 

  

	 	(iii)	any Security Interest on an asset, or an asset of any person, acquired by a member of the Group after the date of this Agreement to the extent that the principal amount secured by that Security Interest has not been
incurred or increased in contemplation of, or since, the acquisition; 

  

	 	(iv)	any Security Interest arising under any contract for the purchase of goods entered into in the normal course of trading; 

  

	 	(v)	any Security Interest over goods and products or over the documents of title or insurance policies relating to such goods and products, arising in the ordinary course of trading in connection with letters of credit and
similar transactions, provided such Security Interest secures only so much of the acquisition cost or selling price (and amounts incidental thereto) of these goods and products which is required to be paid within 6 months after the date upon which
the same was first incurred; 

  

	 	(vi)	set-off rights on market standard terms contained in any hedging agreement; 

  

	 	(vii)	set-off rights in the ordinary course of trading; 

  

	 	(viii)	any Security Interest created in substitution for any of the above Security Interests but only: 

  

	 	(A)	if the Security Interest is over the same asset; 

  

	 	(B)	if the principal amount secured by that Security Interest does not exceed the principal amount secured by the Security Interest which is replaced; and 

 

	 	(C)	if the Security Interest which is replaced was only permitted to be outstanding for a certain period of time, to the extent the new Security Interest is not outstanding for any greater period; and 

 

	 	(ix)	any Security Interest securing indebtedness the amount of which (when aggregated with the amount of assets or receivables sold, transferred or disposed of under paragraph (d) below) does not exceed 10 per
cent. of the consolidated gross assets of the Group as shown in the most recent audited consolidated financial statements of the Company delivered to the Facility Agent pursuant to Clause 17.1 (Financial statements) (being as at the date of
this Agreement the Original Financial Statements). 

  

	(d)	No member of the Group may sell, transfer or otherwise dispose of any of its receivables on recourse terms, in circumstances where the transaction is entered into primarily as a method of raising Financial Indebtedness
or of financing the acquisition of an asset unless the amount of assets or receivables sold, transferred or disposed of under this paragraph (including any assets the subject of any such arrangement on the date of this Agreement) (when aggregated
with the amount of indebtedness secured under Clause 19.7(c)(ix) above) does not exceed 10 per cent. of the consolidated gross assets of the Group as shown in the most recent audited consolidated financial statements of the Company delivered to
the Facility Agent pursuant to Clause 17.1 (Financial statements) (being as at the date of this Agreement the Original Financial Statements). 

  
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	19.8	Disposals 

  

	(a)	In this Clause, disposal means a sale, transfer, grant, lease or other disposal, whether voluntary or involuntary, and dispose will be construed accordingly. 

 

	(b)	Except as provided below, the Company will not, and will procure that no Subsidiary will, either in a single transaction or in a series of transactions and whether related or not, dispose of all or any part of its
assets. 

  

	(c)	Paragraph (b) does not apply to any disposal: 

  

	 	(i)	made in the ordinary course of business of the disposing entity; 

  

	 	(ii)	of assets which are exchanged within 180 days for other assets comparable or superior as to type, value and quality; 

  

	 	(iii)	by one company in the Group to another company in the Group; 

  

	 	(iv)	of machinery or plant at or nearly at the end of their useful life or period of depreciation; 

  

	 	(v)	of obsolete equipment owned by a member of the Group no longer required for the purposes of the business carried on by that member of the Group; 

 

	 	(vi)	which would not be deemed to be a class 1 transaction under the Listing Rules of the Financial Conduct Authority or which would not require the approval of the shareholders of the Company in general meeting; or

  

	 	(vii)	the net proceeds of which are applied in permanent prepayment and cancellation of Loans. 

  

	19.9	Financial Indebtedness 

  

	(a)	Except as provided below no member of the Group (other than the Company) may incur any Financial Indebtedness. 

  

	(b)	Paragraph (a) does not apply to: 

  

	 	(i)	any Financial Indebtedness of any person acquired by a member of the Group which is incurred under arrangements in existence at the date of acquisition, but only for a period of six months from the date of acquisition;

  

	 	(ii)	any derivative transaction protecting against or benefiting from fluctuations in any rate or price entered into in the ordinary course of business; 

 

	 	(iii)	the capital element of any liability under finance or capital leases up to a maximum amount not exceeding U.S.$50,000,000 (or the equivalent in any other currency) or any higher amount which is approved in writing by
the Facility Agent acting on the instructions of the Majority Lenders; 

  

	 	(iv)	foreign exchange, interest rate or similar hedging arrangements entered into only for the purposes of managing the interest rate and foreign exchange rates of the Group and not for any speculative purpose or pursuant to
any financial trading; 

  

	 	(v)	 Financial Indebtedness incurred in favour of banks or other financial institutions as a result of netting or set off arrangements entered into by a
member of the Group in the 

  
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ordinary course of its banking arrangements for the purpose of netting debit and credit balances on accounts maintained with such banks or financial institutions but only to the extent that such
Financial Indebtedness does not exceed the amount of such credit balances; 

  

	 	(vi)	any Financial Indebtedness due under any Finance Document; or 

  

	 	(vii)	any other Financial Indebtedness which in aggregate does not exceed 5 per cent. of consolidated gross assets as shown in the most recent audited consolidated financial statements of the Company. 

 

	19.10	Change of business 

 The Company must ensure that there are no substantial changes made to the general
nature of the business of the Group, taken as a whole, as exists at the date of this Agreement such that the principal activities of the Group, taken as a whole, are no longer consistent with such business. 

 

	19.11	Mergers 

 No Obligor may enter into any amalgamation, demerger, merger or reconstruction otherwise than
under an intra Group reorganisation on a solvent basis or other transaction agreed by the Majority Lenders. 
  

	20.	DEFAULT 

  

	20.1	Events of Default 

  

	(a)	Save for Clause 20.13 (Acceleration) and Clause 20.14 (Clean-Up Period), each of the events set out in this Clause 20 is an Event of Default. 

 

	(b)	In this Clause 20: 

 Material Group Member means an Obligor or a Material Subsidiary; and 

Permitted Transaction means: 
  

	 	(i)	an intra Group reorganisation of a Material Subsidiary on a solvent basis; or 

  

	 	(ii)	any other transaction agreed by the Majority Lenders. 

  

	20.2	Non payment 

 An Obligor does not pay on the due date any amount payable by it under the Finance
Documents in the manner required under the Finance Documents, unless the non payment: 
  

	(a)	is caused by administrative or technical error; and 

  

	(b)	is remedied within three Business Days (in the case of principal amounts due under this Agreement) and within five Business Days (in the case of any other amount due under this Agreement) of its due date.

  

	20.3	Breach of other obligations 

  

	(a)	The Company does not comply with any term of Clause 18 (Financial covenants) or Clause 19.5 (Use of proceeds); or 

  
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	(b)	an Obligor does not comply with any other term of the Finance Documents not already referred to in this Clause, unless the non compliance: 

 

	 	(i)	is capable of remedy; and 

  

	 	(ii)	is remedied within twenty Business Days of the earlier of the Facility Agent giving notice and the Obligor becoming aware of the non compliance. 

 

	20.4	Misrepresentation 

 A representation made or repeated by an Obligor in any Finance Document or in any
document delivered by or on behalf of an Obligor under any Finance Document is incorrect in any material respect when made or deemed to be repeated unless the circumstances giving rise to the misrepresentation: 

 

	(a)	are capable of remedy; and 

  

	(b)	are remedied within twenty Business Days of the earlier of the Facility Agent giving notice and the relevant Obligor becoming aware of the misrepresentation. 

 

	20.5	Cross default 

 Any of the following occurs in respect of a member of the Group: 

 

	(a)	any of its Financial Indebtedness is not paid when due (after the expiry of any originally applicable grace period); 

  

	(b)	any of its Financial Indebtedness: 

  

	 	(i)	becomes prematurely due and payable; or 

  

	 	(ii)	is placed on demand, 

 in each case, as a result of an event of default; or 

 

	(c)	any commitment for its Financial Indebtedness is cancelled or suspended as a result of an event of default; 

  

	(d)	No Event of Default will occur under this Clause 20.5 if: 

  

	 	(i)	the Financial Indebtedness is of any person acquired by a member of the Group which is: 

  

	 	(A)	incurred under the arrangements in existence at the date of acquisition; and 

  

	 	(B)	the event of default in respect thereof is no longer outstanding after one month from the date of acquisition; 

or 
  

	 	(ii)	the aggregate amount of Financial Indebtedness falling within paragraphs (a) to (c) above is at the time of any determination less than U.S.$30,000,000 or its equivalent. 

 

	20.6	Insolvency 

 Any of the following occurs in respect of a Material Group Member: 

  
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	(a)	it is or is deemed for the purposes of Section 123 of the Insolvency Act 1986 (but as if the figure of £750 in paragraph (a) was replaced with the figure of U.S.$10,000,000 (or its equivalent)) to be
unable to pay its debts as they fall due; 

  

	(b)	it admits its inability to pay its debts as they fall due; 

  

	(c)	it suspends making payments on its debts generally or announces an intention to do so; 

  

	(d)	by reason of actual or anticipated financial difficulties, it begins negotiations with creditors generally or any class of them for the rescheduling of any of its indebtedness; 

 

	(e)	a moratorium is declared in respect of its indebtedness generally. 

  

	20.7	Insolvency proceedings 

  

	(a)	Except as provided in paragraph (b) below, any of the following occurs in respect of a Material Group Member: 

  

	 	(i)	any step is taken with a view to a composition, assignment or similar arrangement with its creditors generally; 

  

	 	(ii)	a meeting of it is convened for the purpose of considering any resolution for or to petition for its winding up, administration or dissolution or any such resolution is passed; 

 

	 	(iii)	any person presents a petition for its bankruptcy, winding up, administration or dissolution; 

  

	 	(iv)	an order for its winding up, administration or dissolution is made; 

  

	 	(v)	any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer is appointed in respect of it; 

 

	 	(vi)	its directors or other officers request the appointment of a liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer; or

  

	 	(vii)	any other analogous step or procedure is taken in any jurisdiction. 

  

	(b)	Paragraph (a) does not apply to: 

  

	 	(i)	any step or procedure which is part of a Permitted Transaction; or 

  

	 	(ii)	a petition for winding-up presented by a creditor which is being contested in good faith and with due diligence and is discharged or struck out within fourteen days. 

 

	20.8	Creditors’ process 

 Any attachment, sequestration, distress, execution or analogous event affects
any asset(s) of a Material Group Member, having an aggregate value of U.S.$10,000,000 (or its equivalent), and is not discharged within 21 days or is being contested in good faith to the satisfaction of the Facility Agent acting reasonably. 

  
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	20.9	Cessation of business 

 A Material Group Member ceases, or threatens to cease, to carry on business
except: 
  

	(a)	as part of a Permitted Transaction; or 

  

	(b)	as a result of any disposal allowed under this Agreement. 

  

	20.10	Ownership 

 Any Obligor (other than the Company) is not or ceases to be a wholly owned Subsidiary of the
Company. 
  

	20.11	Unlawfulness 

 It is or becomes unlawful for an Obligor to perform any of its obligations under the
Finance Documents. 
  

	20.12	Repudiation 

 An Obligor repudiates a Finance Document or purports to repudiate a Finance Document. 

 

	20.13	Acceleration 

 If an Event of Default is outstanding, the Facility Agent may, and must if so directed by
the Majority Lenders, by notice to the Company: 
  

	(a)	cancel the Total Commitments; and/or 

  

	(b)	declare that all or part of any amounts outstanding under the Finance Documents are: 

  

	 	(i)	immediately due and payable; and/or 

  

	 	(ii)	payable on demand by the Facility Agent acting on the instructions of the Majority Lenders. 

 Any notice given
under this Clause will take effect in accordance with its terms. 
  

	20.14	Clean-Up Period 

 Notwithstanding any other provision of any Finance Documents: 

 

	(a)	any breach of a Clean-Up Representation or a Clean-Up Undertaking; or 

  

	(b)	any Event of Default constituting a Clean-Up Default, 

 will be deemed not to be a breach of a representation
or warranty, a breach of covenant or an Event of Default (as the case may be) for the purposes of this Agreement including, without limitation, Clause 4.2 (Further conditions precedent), if: 

 

	 	(i)	it would have been (if it were not for this provision) a breach of representation or warranty, or a breach of covenant or an Event of Default only by reason of circumstances relating exclusively to any member of the
Target Group (or any obligation to procure or ensure in relation to a member of the Target Group); 

  

	 	(ii)	it is capable of remedy and reasonable steps are being taken to remedy it; 

  
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	 	(iii)	the circumstances giving rise to it have not been procured by or approved by any Obligor that is an Obligor at the date of this Agreement; and 

 

	 	(iv)	it is not reasonably likely to have a Material Adverse Effect. 

 If the relevant circumstances are continuing
on or after the Clean-Up Date, there shall be a breach of representation or warranty, breach of covenant or Event of Default, as the case may be, notwithstanding the above (and without prejudice to the rights and remedies of the Finance Parties).

  

	21.	THE ADMINISTRATIVE PARTIES 

  

	21.1	Appointment and duties of the Facility Agent 

  

	(a)	Each Finance Party (other than the Facility Agent) irrevocably appoints the Facility Agent to act as its agent under the Finance Documents. 

 

	(b)	Each Finance Party irrevocably authorises the Facility Agent to: 

  

	 	(i)	perform the duties and to exercise the rights, powers and discretions that are specifically given to it under the Finance Documents, together with any other incidental rights, powers and discretions; and

  

	 	(ii)	execute each Finance Document expressed to be executed by the Facility Agent. 

  

	(c)	The Facility Agent has only those duties which are expressly specified in the Finance Documents. Those duties are solely of a mechanical and administrative nature. 

 

	21.2	Role of the Mandated Lead Arrangers 

 Except as specifically provided in the Finance Documents, no
Mandated Lead Arranger has any obligations of any kind to any other Party in connection with any Finance Document. 
  

	21.3	No fiduciary duties 

 Except as specifically provided in a Finance Document, nothing in the Finance
Documents makes an Administrative Party a trustee or fiduciary for any other Party or any other person. No Administrative Party need hold in trust any moneys paid to it for a Party or be liable to account for interest on those moneys received by it
for its own account. 
  

	21.4	Individual position of an Administrative Party 

  

	(a)	If it is also a Lender, each Administrative Party has the same rights and powers under the Finance Documents as any other Lender and may exercise those rights and powers as though it were not an Administrative Party.

  

	(b)	Each Administrative Party may: 

  

	 	(i)	carry on any business with any Obligor or its related entities (including acting as an agent or a trustee for any other financing); and 

 

	 	(ii)	retain any profits or remuneration it receives under the Finance Documents or in relation to any other business it carries on with any Obligor or its related entities. 

 

	21.5	Reliance, rights and discretions of the Facility Agent 

  

	(a)	The Facility Agent may: 

  
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	 	(i)	rely on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person; 

 

	 	(ii)	rely on any statement made by any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify; 

 

	 	(iii)	engage, pay for and rely on professional advisers selected by it (including those representing a Party other than the Facility Agent); 

 

	 	(iv)	act under the Finance Documents through its personnel and agents; 

  

	 	(v)	disclose to any other Party information it reasonably believes it has received as agent under this Agreement; 

  

	 	(vi)	disclose the identity of a Defaulting Lender to the other Finance Parties and the Company and shall disclose the same upon the written request of the Company or the Majority Lenders; and 

 

	 	(vii)	not disclose to any Finance Party any details of the rate notified to the Facility Agent by any Lender or the identity of any such Lender for the purpose of paragraph (a)(ii) of Clause 10.2 (Market disruption).

  

	(b)	Notwithstanding any other provision of any Finance Document to the contrary, neither the Facility Agent nor the Mandated Lead Arrangers are obliged to do or omit to do anything if it would or might in their reasonable
opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality. 

  

	21.6	Majority Lenders’ instructions 

  

	(a)	The Facility Agent is fully protected if it acts on the instructions of the Majority Lenders in the exercise of any right, power or discretion or any matter not expressly provided for in the Finance Documents. Any such
instructions given by the Majority Lenders will be binding on all the Lenders. In the absence of instructions, the Facility Agent may act as it considers to be in the best interests of all the Lenders. 

 

	(b)	The Facility Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings in connection with any Finance Document. 

 

	(c)	The Facility Agent may require the receipt of security satisfactory to it, whether by way of payment in advance or otherwise, against any liability or loss which it may incur in complying with the instructions of the
Majority Lenders. 

  

	21.7	Responsibility 

  

	(a)	No Administrative Party is responsible to any other Finance Party for the adequacy, accuracy or completeness of: 

  

	 	(i)	any Finance Document or any other document; or 

  

	 	(ii)	any statement or information (whether written or oral) made in or supplied in connection with any Finance Document. 

  

	(b)	 No Administrative Party is responsible for any determination as to whether any information provided or to be provided to any Finance Party is
non-public information the use of which 

  
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may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise. 

  

	(c)	Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms that it: 

 

	 	(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial condition and affairs of each Obligor and its related
entities and the nature and extent of any recourse against any Party or its assets); and 

  

	 	(ii)	has not relied exclusively on any information provided to it by any Administrative Party in connection with any Finance Document. 

  

	21.8	Exclusion of liability 

  

	(a)	The Facility Agent is not liable to any other Finance Party for any action taken or not taken by it in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct.

  

	(b)	No Party (other than the Facility Agent) may take any proceedings against any officer, employee or agent of the Facility Agent in respect of any claim it might have against the Facility Agent or in respect of any act or
omission of any kind by that officer, employee or agent in connection with any Finance Document. Any officer, employee or agent of the Facility Agent may rely on this Clause and enforce its terms under the Contracts (Rights of Third Parties) Act
1999. 

  

	21.9	Default 

  

	(a)	The Facility Agent is not obliged to monitor or enquire whether a Default has occurred. The Facility Agent is not deemed to have knowledge of the occurrence of a Default. 

 

	(b)	If the Facility Agent: 

  

	 	(i)	receives notice from a Party referring to this Agreement, describing a Default and stating that the event is a Default; or 

  

	 	(ii)	is aware of the non payment of any principal or interest or any fee payable to a Lender under this Agreement, 

it must promptly notify the Lenders. 
  

	21.10	Information 

  

	(a)	Subject to paragraph (b) below, the Facility Agent must promptly forward to the person concerned the original or a copy of any document which is delivered to the Facility Agent by a Party for that person.

  

	(b)	Without prejudice to Clause 27.11 (Copy of Transfer Certificate or Increase Confirmation to the Company), paragraph (a) above shall not apply to any Transfer Certificate or Increase Confirmation.

  

	(c)	Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

  
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	(d)	Except as provided above, the Facility Agent has no duty: 

  

	 	(i)	either initially or on a continuing basis to provide any Lender with any credit or other information concerning the risks arising under or in connection with the Finance Documents (including any information relating to
the financial condition or affairs of any Obligor or its related entities or the nature or extent of recourse against any Party or its assets) whether coming into its possession before, on or after the date of this Agreement; or 

 

	 	(ii)	unless specifically requested to do so by a Lender in accordance with a Finance Document, to request any certificate or other document from any Obligor. 

 

	(e)	In acting as the Facility Agent, the agency division of the Facility Agent is treated as a separate entity from its other divisions and departments. Any information acquired by the Facility Agent which, in its opinion,
is acquired by it otherwise than in its capacity as the Facility Agent may be treated as confidential by the Facility Agent and will not be treated as information possessed by the Facility Agent in its capacity as such. 

 

	(f)	Each Obligor irrevocably authorises the Facility Agent to disclose to the other Finance Parties any information which, in its opinion, is received by it in its capacity as the Facility Agent. 

 

	21.11	Indemnities 

  

	(a)	Without limiting the liability of any Obligor under the Finance Documents, each Lender must indemnify the Facility Agent for that Lender’s Pro Rata Share of any loss or liability incurred by the Facility Agent in
acting as the Facility Agent, except to the extent that the loss or liability is caused by the Facility Agent’s gross negligence or wilful misconduct. 

  

	(b)	The Facility Agent may deduct from any amount received by it for a Lender any amount due to the Facility Agent from that Lender under a Finance Document but unpaid. 

 

	21.12	Compliance 

 The Facility Agent may refrain from doing anything (including the disclosure of any
information) which might, in its opinion, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do anything which, in its opinion, is necessary or desirable to comply with any law or regulation.

  

	21.13	Resignation of the Facility Agent 

  

	(a)	The Facility Agent may resign and appoint any of its Affiliates as successor Facility Agent by giving notice to the Lenders and the Company. 

 

	(b)	Alternatively, the Facility Agent may resign by giving notice to the Lenders and the Company, in which case the Majority Lenders may appoint a successor Facility Agent. 

 

	(c)	If no successor Facility Agent has been appointed under paragraph (b) above within 30 days after notice of resignation was given, the Facility Agent may appoint a successor Facility Agent. 

 

	(d)	The person(s) appointing a successor Facility Agent must, if practicable, consult with the Company prior to the appointment for a period of not less than 30 days. Any successor Facility Agent must have an office in the
U.K. 

  
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	(e)	The resignation of the Facility Agent and the appointment of any successor Facility Agent will both become effective only when the successor Facility Agent notifies all the Parties that it accepts its appointment. On
giving the notification, the successor Facility Agent will succeed to the position of the Facility Agent and the term Facility Agent will mean the successor Facility Agent. 

 

	(f)	The retiring Facility Agent must, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility Agent may reasonably request for the
purposes of performing its functions as the Facility Agent under the Finance Documents. 

  

	(g)	Upon its resignation becoming effective, this Clause will continue to benefit the retiring Facility Agent in respect of any action taken or not taken by it in connection with the Finance Documents while it was the
Facility Agent, and, subject to paragraph (f) above, it will have no further obligations under any Finance Document. 

  

	(h)	The Majority Lenders may, by notice to the Facility Agent, require it to resign under paragraph (b) above. 

  

	(i)	The Facility Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Facility Agent pursuant to paragraph (c) above) if
on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Facility Agent under the Finance Documents, either: 

 

	 	(i)	the Facility Agent fails to respond to a request under Clause 11.8 (FATCA Information) and the Company or a Lender reasonably believes that the Facility Agent will not be (or will have ceased to be) a FATCA
Exempt Party on or after that FATCA Application Date; 

  

	 	(ii)	the information supplied by the Facility Agent pursuant to Clause 11.8 (FATCA Information) indicates that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA
Application Date; or 

  

	 	(iii)	the Facility Agent notifies the Company and the Lenders that the Facility Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; 

and (in each case) the Company or a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be
required if the Facility Agent were a FATCA Exempt Party, and the Company or that Lender, by notice to the Facility Agent, requires it to resign. 
  

	21.14	Replacement of the Facility Agent 

  

	(a)	After consultation with the Company, the Majority Lenders may, by giving 30 days’ notice to the Facility Agent (or, at any time the Facility Agent is an Impaired Agent, by giving any shorter notice determined by
the Majority Lenders) replace the Facility Agent by appointing a successor Facility Agent (acting through an office in the United Kingdom). 

  

	(b)	The retiring Facility Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor Facility Agent such documents and records and provide such
assistance as the successor Facility Agent may reasonably request for the purposes of performing its functions as Facility Agent under the Finance Documents. 

  
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	(c)	The appointment of the successor Facility Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Facility Agent. As from this date, the retiring Facility Agent shall be
discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause (and any agency fees for the account of the retiring Facility Agent shall cease to accrue from (and shall be payable
on) that date). 

  

	(d)	Any successor Facility Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party. 

 

	21.15	Relationship with Lenders 

  

	(a)	Subject to Clause 27.13 (Pro rata Interest Settlement), the Facility Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Facility Agent’s principal
office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office: 

  

	 	(i)	entitled to or liable for any payment due under any Finance Document on that day; and 

  

	 	(ii)	entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day, 

unless it has received not less than five Business Days’ prior notice from that Lender to the contrary in accordance with the terms of
this Agreement. 
  

	(b)	The Facility Agent may at any time, and must if requested to do so by the Majority Lenders, convene a meeting of the Lenders. 

  

	(c)	The Facility Agent, acting for this purpose solely as an agent of the Company, must keep a register (the Register) of all the Parties and supply the Company with a copy of the Register on request. The
Register will include each Lender’s Facility Office(s) and contact details for the purposes of this Agreement. The Register shall be available for inspection by the Borrower, at any reasonable time and from time to time upon reasonable prior
notice. The right to the principal of, and interest on, the Loans may be transferred or assigned only if such transfer or assignment is recorded in the Register. 

  

	(d)	Any Lender may by notice to the Facility Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents. Such
notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 33.5 (Electronic communication)) electronic mail address and/or any other information required to
enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail
address, department and officer by that Lender for the purposes of Clause 33.2 (Contact details) and paragraph (a)(iii) of Clause 33.5 (Electronic communication) and the Facility Agent shall be entitled to treat such person as the
person entitled to receive all such notices, communications, information and documents as though that person were that Lender. 

  
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	21.16	Notice period 

 Where this Agreement specifies a minimum period of notice to be given to the Facility
Agent, the Facility Agent may, at its discretion, accept a shorter notice period. 
  

	22.	EVIDENCE AND CALCULATIONS 

  

	22.1	Accounts 

 Accounts maintained by a Finance Party in connection with this Agreement are prima facie
evidence of the matters to which they relate for the purpose of any litigation or arbitration proceedings. 
  

	22.2	Certificates and determinations 

 Any certification or determination by a Finance Party of a rate or
amount under the Finance Documents will be, in the absence of manifest error, conclusive evidence of the matters to which it relates. 
  

	22.3	Calculations 

 Any interest or fee accruing under a Finance Document accrues from day to day and is
calculated on the basis of the actual number of days elapsed and a year of 360 or 365 days or otherwise, depending on what the Facility Agent determines is market practice. 
  

	23.	FEES 

  

	23.1	Facility Agent’s fee 

 The Company must pay to the Facility Agent for its own account an agency fee
in the manner agreed in the Fee Letter between the Facility Agent and the Company. If the Commitment of each Lender has not been automatically cancelled pursuant to Clause 7.7(b) (Automatic cancellation) by 15 April 2014, the Company
must enter into a Fee Letter with the Facility Agent by no later than 22 April 2014. 
  

	23.2	Arrangement fee and participation fee 

 The Company must pay: 

 

	(a)	to the Mandated Lead Arrangers, an arrangement fee; and 

  

	(b)	to the Original Lenders, a participation fee, 

 in each case, for their own account in the manner agreed in:

  

	 	(i)	in respect of the arrangement fee, the Fee Letter between the Mandated Lead Arrangers and the Company; and 

  

	 	(ii)	in respect of the participation fee, the Fee Letter between the Facility Agent (for the account of the Lenders) and the Company. 

  

	23.3	Commitment fee 

  

	(a)	The Company must pay to the Facility Agent (for the account of each Lender) a commitment fee computed at the rate of: 

  
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	 	(i)	from the date of this Agreement to the date falling two months after the Signing Date, 25 per cent. of the applicable Margin on that Lender’s Available Commitment; and 

 

	 	(ii)	thereafter to the end of the Availability Period, 35 per cent. of the applicable Margin on that Lender’s Available Commitment. 

 

	(b)	Accrued commitment fee is payable quarterly in arrear. Accrued commitment fee is also payable to the Facility Agent for the account of the Lenders on: 

 

	 	(i)	the first Utilisation Date; 

  

	 	(ii)	the last date of the Availability Period; and 

  

	 	(iii)	(for the account of the relevant Lenders only) the date a relevant Lender’s Commitment is cancelled in full. 

  

	(c)	No commitment fee is payable to the Facility Agent (for the account of a Lender) on any Available Commitment of that Lender for any day on which that Lender is a Defaulting Lender. 

 

	24.	INDEMNITIES AND BREAK COSTS 

  

	24.1	Currency indemnity 

  

	(a)	The Company shall, as an independent obligation, indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of: 

 

	 	(i)	that Finance Party receiving an amount in respect of an Obligor’s liability under the Finance Documents; or 

  

	 	(ii)	that liability being converted into a claim, proof, judgment or order, 

 in a currency other
than the currency in which the amount is expressed to be payable under the relevant Finance Document. 
  

	(b)	Unless otherwise required by law, each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable.

  

	24.2	Other indemnities 

  

	(a)	The Company must indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of: 

  

	 	(i)	the occurrence of any Event of Default; 

  

	 	(ii)	any failure by an Obligor to pay any amount due under a Finance Document on its due date, including any resulting from any distribution or redistribution of any amount among the Lenders under this Agreement;

  

	 	(iii)	(other than by reason of negligence or default by that Finance Party) a Loan not being made after a Request has been delivered for that Loan; or 

 

	 	(iv)	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment. 

  
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 The Company’s liability in each case includes any loss or expense on account of funds
borrowed, contracted for or utilised to fund any amount payable under any Finance Document, any amount repaid or prepaid or any Loan. 
  

	(b)	The Company must indemnify the Facility Agent against any loss or liability incurred by the Facility Agent as a result of: 

  

	 	(i)	investigating any event which the Facility Agent reasonably believes to be a Default; or 

  

	 	(ii)	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised. 

 

	24.3	Break Costs 

  

	(a)	The Borrower must pay to each Lender its Break Costs. 

  

	(b)	Break Costs are the amount (if any) determined by the relevant Lender by which: 

  

	 	(i)	the interest which that Lender would have received for the period from the date of receipt of any part of its share in a Loan or an overdue amount to the last day of the applicable Term for that Loan or overdue amount
if the principal or overdue amount received had been paid on the last day of that Term; 

 exceeds 

 

	 	(ii)	the amount which that Lender would be able to obtain by placing an amount equal to the amount received by it on deposit with a leading bank in the appropriate interbank market for a period starting on the Business Day
following receipt and ending on the last day of the applicable Term. 

  

	(c)	Each Lender must supply to the Facility Agent for the Borrower details of the amount of any Break Costs claimed by it under this Clause. 

 

	25.	EXPENSES 

  

	25.1	Subsequent costs 

 The Company must pay to the Facility Agent the amount of all costs and expenses
(including legal fees) reasonably incurred by it in connection with: 
  

	(a)	the negotiation, preparation, printing and execution of any Finance Document (other than a Transfer Certificate) executed after the date of this Agreement; and 

 

	(b)	any amendment, waiver or consent requested by or on behalf of any Obligor or specifically allowed by this Agreement. 

  

	25.2	Enforcement costs 

 The Company must pay to each Finance Party the amount of all costs and expenses
(including legal fees) incurred by it in connection with the enforcement of, or the preservation of any rights under, any Finance Document. 

  
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	26.	AMENDMENTS AND WAIVERS 

  

	26.1	Procedure 

  

	(a)	Except as provided in this Clause, any term of the Finance Documents may be amended or waived with the agreement of the Company and the Majority Lenders. The Facility Agent may effect, on behalf of any Finance Party, an
amendment or waiver allowed under this Clause. 

  

	(b)	The Facility Agent must promptly notify the other Parties of any amendment or waiver effected by it under paragraph (a) above. Any such amendment or waiver is binding on all the Parties. 

 

	26.2	Exceptions 

  

	(a)	An amendment or waiver which relates to: 

  

	 	(i)	the definition of “Majority Lenders” in Clause 1.1 (Definitions); 

  

	 	(ii)	an extension of the date of payment of any amount to a Lender under the Finance Documents; 

  

	 	(iii)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fee or other amount payable to a Lender under the Finance Documents; 

 

	 	(iv)	an increase in, or an extension of, a Commitment; 

  

	 	(v)	a release of an Obligor otherwise than in accordance with Clause 27.7 (Resignation of an Obligor (other than the Company)) or as a result of a disposal permitted under Clause 19.8 (Disposals);

  

	 	(vi)	a term of a Finance Document which expressly requires the consent of each Lender; 

  

	 	(vii)	the right of a Lender to assign or transfer its rights or obligations under the Finance Documents; or 

  

	 	(viii)	this Clause, 

 may only be made with the consent of all the Lenders. 

 

	(b)	An amendment or waiver which relates to the rights or obligations of an Administrative Party may only be made with the consent of that Administrative Party. 

 

	26.3	Disenfranchisement of Defaulting Lenders 

  

	(a)	For so long as a Defaulting Lender has any Available Commitment, in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments has been
obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, that Defaulting Lender’s Commitments will be reduced by the amount of its Available Commitments and, to the extent that reduction
results in that Defaulting Lender’s Total Commitments being zero, that Defaulting Lender shall be deemed not to be a Lender for the purpose of this paragraph (a). 

 

	(b)	 If a Defaulting Lender fails to respond to a request for a consent, waiver, amendment or other vote under the Finance Documents or any other vote of
the Lenders under the terms of this Agreement within ten Business Days in relation to consents, waivers, amendments or votes 

  
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which require Majority Lender consent, and within fifteen Business Days in relation to consents, waivers, amendments or votes which require all Lender consent (unless the Company and the Facility
Agent agree to a longer time period) of that request being made, its Commitment and/or participation shall not be included for the purpose of calculating the Total Commitments or participations under the Facility when ascertaining whether any
relevant percentage of Total Commitments and/or participations has been obtained to approve that request. 

  

	(c)	For the purposes of this Clause, the Facility Agent may assume that the following Lenders are Defaulting Lenders: 

  

	 	(i)	any Lender which has notified the Facility Agent that it has become a Defaulting Lender; 

  

	 	(ii)	any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of Defaulting Lender has occurred, 

unless it has received notice to the contrary from the Lender concerned or the Facility Agent is otherwise aware that the Lender has ceased to
be a Defaulting Lender. 
  

	26.4	Replacement of a Defaulting Lender 

  

	(a)	The Company may, at any time a Lender has become and continues to be a Defaulting Lender, by giving five Business Days’ prior written notice to the Facility Agent and such Lender: 

 

	 	(i)	replace such Lender by requiring such Lender to (and to the extent permitted by law such Lender shall) transfer pursuant to Clause 27 (Changes to the Parties) all (and not part only) of its rights and obligations
under this Agreement; or 

  

	 	(ii)	require such Lender to (and to the extent permitted by law such Lender shall) transfer pursuant to Clause 27 (Changes to the Parties) all (and not part only) of the undrawn Commitment of the Lender,

 to a Lender or other bank, financial institution, trust, fund or other entity (a Replacement Lender) selected
by the Company, and which (unless the Facility Agent is an Impaired Agent) is acceptable to the Facility Agent (acting reasonably) and which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of
the transferring Lender (including the assumption of the transferring Lender’s participations or unfunded participations (as the case may be) on the same basis as the transferring Lender) for a purchase price in cash payable at the time of
transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding Utilisations and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents. 

 

	(b)	Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause shall be subject to the following conditions: 

  

	 	(i)	the Company shall have no right to replace the Facility Agent; 

  

	 	(ii)	neither the Facility Agent nor the Defaulting Lender shall have any obligation to the Company to find a Replacement Lender; 

  

	 	(iii)	the transfer must take place no later than 30 days after the notice referred to in paragraph (a) above; and 

  
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	 	(iv)	in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents. 

 

	26.5	Change of currency 

 If a change in any currency of a country occurs (including where there is more than
one currency or currency unit recognised at the same time as the lawful currency of a country), this Agreement will be amended to the extent the Facility Agent (acting reasonably and after consultation with the Company) determines is necessary to
reflect the change. 
  

	26.6	Waivers and remedies cumulative 

 The rights of each Finance Party under the Finance Documents: 

 

	(a)	may be exercised as often as necessary; 

  

	(b)	are cumulative and not exclusive of its rights under the general law; and 

  

	(c)	may be waived only in writing and specifically. 

 Delay in exercising or non exercise of any right is not a
waiver of that right. 
  

	27.	CHANGES TO THE PARTIES 

  

	27.1	Assignments and transfers by Obligors 

 No Obligor may assign or transfer any of its rights and
obligations under the Finance Documents without the prior consent of all the Lenders. 
  

	27.2	Assignments and transfers by Lenders 

  

	(a)	A Lender (the Existing Lender) may, subject to the following provisions of this Clause, at any time assign or transfer (including by way of novation) any of its rights and obligations under this Agreement
to another bank or financial institution or to a trust, fund or other entity regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets which: 

 

	 	(i)	is a Qualifying Lender, as defined in Clause 11.1 (General); and 

  

	 	(ii)	has a minimum of two credit ratings of either ‘A-’ or higher by Standard & Poor’s, A3 or higher by Moody’s or a comparable rating from a nationally recognised credit rating agency for its
longer term debt obligations, 

 (the New Lender). 

 

	(b)	A transfer of part of a Commitment must be in a minimum amount of at least U.S.$20,000,000 and an integral multiple of U.S.$5,000,000. 

 

	(c)	Unless: 

  

	 	(i)	an Event of Default has occurred which is outstanding; 

  

	 	(ii)	the assignment or transfer is to a lender which is a lender to the Company under the Existing Facility Agreement on the date of this Agreement; or 

  
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	 	(iii)	the assignment or transfer: 

  

	 	(A)	is to take place during primary syndication; 

  

	 	(B)	is to another Lender; or 

  

	 	(C)	is to an Affiliate of a Lender, 

 provided that, if such transfer or assignment under paragraph
(A), (B) or (C) is to take place prior to the first Utilisation Date, such transferee or assignee has a rating that complies with paragraph (a)(ii) above, 

the consent of the Company is required for any assignment or transfer to a New Lender. 

 

	(d)	The consent of the Company given pursuant to paragraph (c) must not be unreasonably withheld or delayed. The Company will be deemed to have given its consent ten Business Days after the Company is given notice of
the request unless it is expressly refused by the Company within that time. 

  

	(e)	A transfer of obligations will be effective only if either: 

  

	 	(i)	the obligations are novated in accordance with the following provisions of this Clause; or 

  

	 	(ii)	the New Lender confirms to the Facility Agent and the Company in form and substance satisfactory to the Facility Agent that it is bound by the terms of this Agreement as a Lender. On the transfer becoming effective in
this manner the Existing Lender will be released from its obligations under this Agreement to the extent that they are transferred to the New Lender. 

  

	(f)	Unless the Facility Agent otherwise agrees, the New Lender must pay to the Facility Agent for its own account, on or before the date any assignment or transfer occurs, a fee of U.S.$4,000. 

 

	(g)	Any reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement. 

 

	(h)	Each New Lender, by executing the relevant Transfer Certificate, confirms, for the avoidance of doubt, that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been approved by or
on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent
as the Existing Lender would have been had it remained a Lender. 

  

	27.3	Procedure for transfer by way of novations 

  

	(a)	A novation is effected if the Existing Lender and the New Lender deliver to the Facility Agent a duly completed Transfer Certificate and the Facility Agent executes it. 

 

	(b)	The Facility Agent must execute as soon as reasonably practicable a Transfer Certificate delivered to it and which appears on its face to be in order. 

 

	(c)	Each Party (other than the Existing Lender and the New Lender) irrevocably authorises the Facility Agent to execute any duly completed Transfer Certificate on its behalf. 

 

	(d)	Subject to Clause 27.13 (Pro rata interest settlement), on the Transfer Date: 

  
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	 	(i)	the New Lender will assume the rights and obligations of the Existing Lender expressed to be the subject of the novation in the Transfer Certificate in substitution for the Existing Lender; and 

 

	 	(ii)	the Existing Lender will be released from those obligations and cease to have those rights. 

  

	27.4	Limitation of responsibility of Existing Lender 

  

	(a)	Unless expressly agreed to the contrary, an Existing Lender is not responsible to a New Lender for the legality, validity, adequacy, accuracy, completeness or performance of: 

 

	 	(i)	any Finance Document or any other document; or 

  

	 	(ii)	any statement or information (whether written or oral) made in or supplied in connection with any Finance Document, 

and any representations or warranties implied by law are excluded. 
  

	(b)	Each New Lender confirms to the Existing Lender and the other Finance Parties that it: 

  

	 	(i)	has made, and will continue to make, its own independent appraisal of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement; and

  

	 	(ii)	has not relied exclusively on any information supplied to it by the Existing Lender in connection with any Finance Document. 

  

	(c)	Nothing in any Finance Document requires an Existing Lender to: 

  

	 	(i)	accept a re transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause; or 

  

	 	(ii)	support any losses incurred by the New Lender by reason of the non performance by any Obligor of its obligations under any Finance Document or otherwise. 

 

	27.5	Costs resulting from change of Lender or Facility Office 

 If: 

 

	(a)	a Lender assigns or transfers any of its rights and obligations under the Finance Documents or changes its Facility Office; and 

  

	(b)	as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to pay a Tax Payment or an Increased Cost, 

then the Obligor need only pay that Tax Payment or Increased Cost to the same extent that it would have been obliged to if no assignment, transfer or change
had occurred, except that this paragraph shall not apply: 
  

	 	(i)	if the assignment, transfer or change is made by a Lender to mitigate any circumstances giving rise to the Tax Payment, Increased Cost or right to be prepaid and/or cancelled by reason of illegality; or

  

	 	(ii)	 in respect of a Tax Payment, if a Treaty Lender has included a confirmation that it wished the HMRC DT Treaty Passport scheme to apply to this
Agreement in 

  
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accordance with Clause 11.2(g)(ii)(B) and the Obligor making the Tax Payment has not made a Borrower DTTP Filing. 

 

	27.6	Additional Guarantors 

  

	(a)	     

  

	 	(i)	Subject to sub-paragraph (ii) below and compliance with Clause 17.5 (“Know Your Customer” checks), the Company may elect for any of its wholly owned Subsidiaries to become an Additional Guarantor.

  

	 	(ii)	If the Additional Guarantor is incorporated in a jurisdiction other than the U.K. the prior consent of all the Lenders is required, which shall be conditional upon, but not limited to, the agreement of appropriate
amendments to Clause 11 (Taxes) to take into account the jurisdiction of incorporation of that Additional Guarantor. 

  

	(b)	If one of the Subsidiaries of the Company is to become an Additional Guarantor, then the Company must (following consultation with the Facility Agent) deliver to the Facility Agent the relevant documents and evidence
listed in Part B of Schedule 2 (Conditions precedent documents). 

  

	(c)	The relevant Subsidiary will become an Additional Guarantor when the Facility Agent notifies the other Finance Parties and the Company that it has received (or waived receipt of) all of the documents and evidence
referred to in paragraph (b) above in form and substance satisfactory to it. The Facility Agent must give this notification as soon as reasonably practicable. 

 

	(d)	Delivery of an Accession Agreement, executed by the relevant Subsidiary and the Company, to the Facility Agent constitutes confirmation by that Subsidiary and the Company that the Repeating Representations are then
correct. 

  

	(e)	Clause 15 (Guarantee and Indemnity) will be amended to the extent the Facility Agent (acting reasonably and after consultation with the Company) determines is necessary to reflect any requirement under the law of
the jurisdiction of any Additional Guarantor to limit the guarantee to be provided by that Additional Guarantor. 

  

	27.7	Resignation of an Obligor (other than the Company) 

  

	(a)	In this Clause, Resignation Request means a letter in the form of Schedule 6 (Form of Resignation Request), with such amendments as the Facility Agent may approve or reasonably require.

  

	(b)	The Company may request that an Obligor (other than the Company) ceases to be an Obligor by giving to the Facility Agent a duly completed Resignation Request. 

 

	(c)	The Facility Agent must accept a Resignation Request and notify the Company and the Lenders of its acceptance if: 

  

	 	(i)	no Default is outstanding or would result from the acceptance of the Resignation Request and the Company confirms this; and 

  

	 	(ii)	no amount owed by that Obligor under this Agreement is still outstanding. 

  

	(d)	The Obligor will cease to be a Guarantor when the Facility Agent gives the notification referred to in paragraph (c) above. 

  
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	27.8	Affiliates of Lenders 

  

	(a)	Each Lender may fulfil its obligations in respect of any Loan through an Affiliate if: 

  

	 	(i)	the relevant Affiliate is specified in this Agreement as a Lender or becomes a Lender by means of a Transfer Certificate in accordance with this Agreement; and 

 

	 	(ii)	the Loans in which that Affiliate will participate are specified in this Agreement, a Transfer Certificate or in a notice given by that Lender to the Facility Agent and the Company. 

In this event, the Lender and the Affiliate will participate in Loans in the manner provided for in sub-paragraph (ii) above. 

 

	(b)	If paragraph (a) above applies, the Lender and its Affiliate will be treated as having a single Commitment and a single vote, but, for all other purposes, will be treated as separate Lenders. 

 

	27.9	Changes to the Reference Banks 

 If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender
of which it is an Affiliate) ceases to be a Lender, the Facility Agent must (with the agreement of the Company) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank. 

 

	27.10	Replacement of a Lender 

  

	(a)	For the purposes of this Clause, Non-Consenting Lender means a Lender who does not agree to a consent or amendment or who fails to respond to a request for a consent or amendment where: 

 

	 	(i)	the Company or the Facility Agent has requested the Lenders to consent to a departure from or waiver of any provision of the Finance Documents or to agree to any amendment to the Finance Documents; 

 

	 	(ii)	the relevant consent or amendment requires the agreement of all Lenders; 

  

	 	(iii)	a period of not less than 15 Business Days (or such longer period as the Company and the Facility Agent may agree) has elapsed from the date the consent or amendment was requested; 

 

	 	(iv)	the Majority Lenders have agreed to that consent or amendment; and 

  

	 	(v)	the Company has notified the Lender it will treat it as a Non Consenting Lender. 

  

	(b)	If at any time any Lender becomes a Non-Consenting Lender, then the Company may, on ten Business Days’ prior notice to the Facility Agent and that Lender, replace that Lender by causing it to (and that Lender
shall) transfer in accordance with this Clause 27 all of its rights and obligations under this Agreement to a Lender or other person selected by the Company and acceptable to the Facility Agent (acting reasonably) for a purchase price equal to the
outstanding principal amount of that Lender’s participation in the outstanding Loans and all accrued interest and fees and other amounts payable to that Lender under this Agreement. 

 

	(c)	The Company shall have no right to replace the Facility Agent and neither the Facility Agent nor any Lender shall have any obligation to the Company to find a replacement Lender or other such entity. 

  
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	(d)	The Company may only replace a Non-Consenting Lender if that replacement takes place no later than 180 days after the date the Non-Consenting Lender becomes a Non-Consenting Lender. 

 

	(e)	No Lender replaced under this Clause may be required to pay or surrender to that replacement Lender or other entity any of the fees received by it. 

 

	(f)	The Company’s right to replace a Non-Consenting Lender under this Clause is, and shall be, in addition to, and not in lieu of, all other rights and remedies available to the Company against that Non-Consenting
Lender under this Agreement, at law, in equity, or by statute. 

  

	27.11	Copy of Transfer Certificate or Increase Confirmation to the Company 

 The Facility Agent shall, as soon
as reasonably practicable after it has executed a Transfer Certificate or Increase Confirmation, send to the Company a copy of that Transfer Certificate or Increase Confirmation. 

 

	27.12	Security over Lenders’ rights 

 In addition to the other rights provided to Lenders under this
Clause 27, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create any Security Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any
Finance Document to secure obligations of that Lender including without limitation: 
  

	(a)	any charge, assignment or other Security Interest to secure obligations to a federal reserve or central bank or to governmental authorities, agencies or departments including HM Treasury; and 

 

	(b)	in the case of any Lender which is a fund, any charge, assignment or other Security Interest granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued by that Lender as
security for those obligations or securities, 

 except that no such charge, assignment or Security Interest shall: 

 

	 	(i)	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security Interest for the Lender as a party to any of the Finance Documents;
or 

  

	 	(ii)	require any payments to be made by an Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

  

	27.13	Pro rata interest settlement 

 If the Facility Agent has notified the Lenders that it is able to
distribute interest payments on a pro rata basis to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 27.3 (Procedure for transfer by way of novations) the Transfer Date of which, in each case, is after the
date of such notification and is not on the last day of a Term): 
  

	(a)	any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer
Date (Accrued Amounts) and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Term (or, if the Term is longer than six months, on the next of the dates which
falls at six monthly intervals after the first day of that Term); and 

  
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	(b)	the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that, for the avoidance of doubt: 

 

	 	(i)	when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and 

  

	 	(ii)	the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause, have been payable to it on that date, but after deduction of the Accrued Amounts.

  

	28.	CONFIDENTIALITY 

  

	28.1	Confidential Information 

 Each Finance Party agrees to keep all Confidential Information confidential
and not to disclose it to anyone, save to the extent permitted by Clause 28.2 (Disclosure of Confidential Information) and Clause 28.3 (Disclosure to numbering service providers), and to ensure that all Confidential Information is
protected with security measures and a degree of care that would apply to its own confidential information. 
  

	28.2	Disclosure of Confidential Information 

 Any Finance Party may disclose: 

 

	(a)	to any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider
appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive
information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation
to the Confidential Information; 

  

	(b)	to any person: 

  

	 	(i)	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents and to any of that person’s Affiliates,
Representatives and professional advisers; 

  

	 	(ii)	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by
reference to, one or more Finance Documents and/or one or more Obligors and to any of that person’s Affiliates, Representatives and professional advisers; 

  

	 	(iii)	appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf
(including, without limitation, any person appointed under paragraph (c) of Clause 21.15 (Relationship with the Lenders)); 

  

	 	(iv)	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above; 

  
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	 	(v)	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock
exchange or pursuant to any applicable law or regulation; 

  

	 	(vi)	to whom or for whose benefit that Finance Party charges, assigns or otherwise creates a Security Interest (or may do so) pursuant to Clause 27.12 (Security over Lenders’ rights); 

 

	 	(vii)	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes; 

 

	 	(viii)	who is a Party; or 

  

	 	(ix)	with the consent of the Company; 

 in each case, such Confidential Information as that Finance
Party shall consider appropriate if: 
  

	 	(A)	in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a
Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information; 

 

	 	(B)	in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation
to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information; 

  

	 	(C)	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information
may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances; 

 

	(c)	to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents
including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred
to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With
Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Company and the relevant Finance Party; and 

  

	(d)	 to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating
agency to carry out its normal rating activities in relation to the Finance Documents and/or the Obligors if the rating agency to 

  
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whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information.

  

	28.3	Disclosure to numbering service providers 

  

	(a)	Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or
one or more Obligors the following information: 

  

	 	(i)	names of Obligors; 

  

	 	(ii)	country of domicile of Obligors; 

  

	 	(iii)	place of incorporation of Obligors; 

  

	 	(iv)	date of this Agreement; 

  

	 	(v)	the names of the Facility Agent and the Mandated Lead Arrangers; 

  

	 	(vi)	date of each amendment and restatement of this Agreement; 

  

	 	(vii)	amount of Total Commitments; 

  

	 	(viii)	currency of Facility; 

  

	 	(ix)	type of Facility; 

  

	 	(x)	ranking of Facility; 

  

	 	(xi)	Final Maturity Date of Facility; 

  

	 	(xii)	changes to any of the information previously supplied pursuant to paragraphs (i) to (xi) above; and 

  

	 	(xiii)	such other information agreed between such Finance Party and the Company, 

 to enable such
numbering service provider to provide its usual syndicated loan numbering identification services. 
  

	(b)	The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Obligors by a numbering service provider and the information associated with each such number
may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider. 

  

	28.4	Entire agreement 

 This Clause 28 constitutes the entire agreement between the Parties in relation to the
obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information. 

 

	28.5	Inside information 

 Each of the Finance Parties acknowledges that some or all of the Confidential
Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties
undertakes not to use any Confidential Information for any unlawful purpose. 

  
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	28.6	Notification of disclosure 

 Each of the Finance Parties agrees (to the extent permitted by law and
regulation) to inform the Company: 
  

	(a)	of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause 28.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the
persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and 

  

	(b)	upon becoming aware that Confidential Information has been disclosed in breach of this Clause 28. 

  

	28.7	Continuing obligations 

 The obligations in this Clause 28 are continuing and, in particular, shall
survive and remain binding on each Finance Party for a period of twelve months from the earlier of: 
  

	(a)	the date on which all amounts payable by the Obligors under or in connection with this Agreement have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and 

 

	(b)	the date on which such Finance Party otherwise ceases to be a Finance Party. 

  

	29.	SET OFF 

 Following an Event of Default, a Finance Party may set off any matured obligation owed to it by
an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any obligation (whether or not matured) owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or
currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set off. 

 

	30.	PRO RATA SHARING 

  

	30.1	Redistribution 

 If any amount owing by an Obligor under this Agreement to a Lender (the recovering
Lender) is discharged by payment, set off or any other manner other than through the Facility Agent under this Agreement (a recovery), then: 
  

	(a)	the recovering Lender must, within three Business Days, supply details of the recovery to the Facility Agent; 

  

	(b)	the Facility Agent must calculate whether the recovery is in excess of the amount which the recovering Lender would have received if the recovery had been received by the Facility Agent under this Agreement; and

  

	(c)	the recovering Lender must pay to the Facility Agent an amount equal to the excess (the redistribution). 

  

	30.2	Effect of redistribution 

  

	(a)	The Facility Agent must treat a redistribution as if it were a payment by the relevant Obligor under this Agreement and distribute it among the Lenders accordingly. 

  
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	(b)	When the Facility Agent makes a distribution under paragraph (a) above, the recovering Lender will be subrogated to the rights of the Finance Parties which have shared in that redistribution. 

 

	(c)	If and to the extent that the recovering Lender is not able to rely on any rights of subrogation under paragraph (b) above, the relevant Obligor will owe the recovering Lender a debt which is equal to the
redistribution, immediately payable and of the type originally discharged. 

  

	(d)	If: 

  

	 	(i)	a recovering Lender must subsequently return a recovery, or an amount measured by reference to a recovery, to an Obligor; and 

  

	 	(ii)	the recovering Lender has paid a redistribution in relation to that recovery, 

 each Finance
Party must reimburse the recovering Lender all or the appropriate portion of the redistribution paid to that Finance Party, together with interest for the period while it held the re distribution. In this event, the subrogation in paragraph
(b) above will operate in reverse to the extent of the reimbursement. 
  

	30.3	Exceptions 

 Notwithstanding any other term of this Clause, a recovering Lender need not pay a
redistribution to the extent that: 
  

	(a)	it would not, after the payment, have a valid claim against the relevant Obligor in the amount of the redistribution; or 

  

	(b)	it would be sharing with another Finance Party any amount which the recovering Lender has received or recovered as a result of legal or arbitration proceedings, where: 

 

	 	(i)	the recovering Lender notified the Facility Agent of those proceedings; and 

  

	 	(ii)	the other Finance Party had an opportunity to participate in those proceedings but did not do so or did not take separate legal or arbitration proceedings as soon as reasonably practicable after receiving notice of
them. 

  

	31.	SEVERABILITY 

 If a term of a Finance Document is or becomes illegal, invalid or unenforceable in any
jurisdiction, that shall not affect: 
  

	(a)	the legality, validity or enforceability in that jurisdiction of any other term of the Finance Documents; or 

  

	(b)	the legality, validity or enforceability in other jurisdictions of that or any other term of the Finance Documents. 

  

	32.	COUNTERPARTS 

 Each Finance Document may be executed in any number of counterparts. This has the same
effect as if the signatures on the counterparts were on a single copy of the Finance Document. Delivery of a counterpart of a Finance Document by email attachment or telecopy shall be an effective mode of delivery. 

  
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	33.	NOTICES 

  

	33.1	In writing 

  

	(a)	Any formal communication in connection with a Finance Document must be in writing and, unless otherwise stated, may be given in person, by post or fax approved by the Facility Agent. 

 

	(b)	Unless it is agreed to the contrary, any consent or agreement required under a Finance Document must be given in writing. 

  

	33.2	Contact details 

  

	(a)	Except as provided below, the contact details of each Party for all communications in connection with the Finance Documents are those notified by that Party for this purpose to the Facility Agent on or before the date
it becomes a Party. 

  

	(b)	The contact details of the Company for this purpose are: 

 Smith & Nephew plc 

15 Adam Street 
 London WC2N 6LA

  

					
	Tel:	  	0207 401 7646	  	
	Fax:	  	0207 930 3353	  	
	For the attention of:	  	The Company Secretary

  

	(c)	The contact details of the Facility Agent for operational duties as Facility Agent (such as drawdowns, interest rate fixing, interest/fee calculations and payments) are: 

J.P. Morgan Europe Limited 
 Loans
Agency 6th floor 
 25 Bank Street, Canary Wharf 

London E14 5JP 
 United Kingdom

  

			
	Attention:	  	Loans Agency
	Facsimile:	  	+44 20 7777 2360
	Email:	  	loan_and_agency_london@jpmorgan.com

 For non operational matters as Facility Agent (such as documentation; compliance with covenants; amendments and
waivers etc): 
 J.P. Morgan Europe Limited 

25 Bank Street, Canary Wharf 

London, E14 5JP 
  

					
	Tel:	  	020 7134 5712	  	
	Fax:	  	020 3493 0074	  	
	For the attention of:	  	Jonathan Richards

  

	(d)	Any Party may change its contact details by giving five Business Days’ notice to the Facility Agent or (in the case of the Facility Agent) to the other Parties. 

 

	(e)	Where a Party nominates a particular department or officer to receive a communication, a communication will not be effective if it fails to specify that department or officer. 

  
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	33.3	Effectiveness 

  

	(a)	Except as provided below, any communication in connection with a Finance Document will be deemed to be given as follows: 

  

	 	(i)	if delivered in person, at the time of delivery; 

  

	 	(ii)	if posted, five days after being deposited in the post, postage prepaid, in a correctly addressed envelope; 

  

	 	(iii)	if by fax, when received in legible form. 

  

	(b)	A communication given under paragraph (a) above but received on a non working day or after business hours in the place of receipt will only be deemed to be given on the next working day in that place.

  

	(c)	A communication to the Facility Agent will only be effective on actual receipt by it. 

  

	33.4	Communication when Facility Agent is Impaired Agent 

 If the Facility Agent is an Impaired Agent the
Parties may, instead of communicating with each other through the Facility Agent, communicate with each other directly and (while the Facility Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be
made or notices to be given to or by the Facility Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly. This provision shall not operate after a replacement Facility Agent has been
appointed unless such replacement Facility Agent becomes an Impaired Agent. 
  

	33.5	Electronic communication 

  

	(a)	Any communication to be made between the Facility Agent and a Lender under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Facility Agent and the relevant
Lender: 

  

	 	(i)	agree that, unless and until notified to the contrary, this is to be an accepted form of communication; 

  

	 	(ii)	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and 

 

	 	(iii)	notify each other of any change to their address or any other such information supplied by them. 

  

	(b)	Any electronic communication made between the Facility Agent and a Lender will be effective only when actually received in readable form and in the case of any electronic communication made by a Lender to the Facility
Agent only if it is addressed in such a manner as the Facility Agent shall specify for this purpose. 

  

	33.6	Obligors 

  

	(a)	All communications under the Finance Documents to or from an Obligor must be sent through the Facility Agent. 

  

	(b)	All communications under the Finance Documents to or from an Obligor (other than the Company) must be sent through the Company. 

  
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	(c)	Each Obligor (other than the Company) irrevocably appoints the Company to act as its agent: 

  

	 	(i)	to give and receive all communications under the Finance Documents; 

  

	 	(ii)	to supply all information concerning itself to any Finance Party; and 

  

	 	(iii)	to sign all documents under or in connection with the Finance Documents including, without limitation and for the avoidance of doubt, any amendments to the Finance Documents, any Request, or notice of a prepayment.

  

	(d)	Any communication given to the Company in connection with a Finance Document will be deemed to have been given also to the other Obligors. 

 

	(e)	The Facility Agent may assume that any communication made by the Company is made with the consent of each other Obligor. 

  

	34.	LANGUAGE 

  

	(a)	Any notice given in connection with a Finance Document must be in English. 

  

	(b)	Any other document provided in connection with a Finance Document must be: 

  

	 	(i)	in English; or 

  

	 	(ii)	(unless the Facility Agent otherwise agrees) accompanied by a certified English translation. In this case, the English translation prevails unless the document is a statutory or other official document.

  

	35.	GOVERNING LAW 

 This Agreement and any non-contractual obligations arising out of or in connection with
this Agreement are governed by English law. 
  

	36.	ENFORCEMENT 

  

	36.1	Jurisdiction 

  

	(a)	The English courts have exclusive jurisdiction to settle any dispute in connection with any Finance Document or any non-contractual obligations arising out of or in connection
with any Finance Document. 

  

	(b)	The English courts are the most appropriate and convenient courts to settle any such dispute and each Obligor waives objection to those courts on the grounds of inconvenient forum or otherwise in relation to proceedings
in connection with any Finance Documents. 

  

	(c)	This Clause is for the benefit of the Finance Parties only. To the extent allowed by law, a Finance Party may take: 

  

	 	(i)	proceedings in any other court; and 

  

	 	(ii)	concurrent proceedings in any number of jurisdictions. 

  

	36.2	Service of process 

  

	(a)	 Each Obligor (including, for the avoidance of doubt, each Additional Guarantor) not incorporated in England and Wales irrevocably appoints the Company
as its agent under the 

  
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Finance Documents for service of process in any proceedings before the English courts (which appointment the Company hereby accepts). 

 

	(b)	If any person appointed as process agent is unable for any reason to act as agent for service of process, the Company (on behalf of all the Obligors) must immediately appoint another agent on terms acceptable to the
Facility Agent. Failing this, the Facility Agent may appoint another agent for this purpose. 

  

	(c)	Each Obligor agrees that failure by a process agent to notify it of any process will not invalidate the relevant proceedings. 

  

	(d)	This Clause does not affect any other method of service allowed by law. 

 THIS AGREEMENT has been
entered into on the date stated at the beginning of this Agreement. 

  
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 SCHEDULE 1 

ORIGINAL LENDERS 
  

											
	Name of Original Lender	  	Commitment
(U.S.$)	 	  	Facility Office	  	Qualifying Lender status	  	 HMRC Double Taxation

Treaty Passport scheme
reference number and
jurisdiction of tax residence
(if
applicable)

					
	 Barclays Bank PLC
	  	 	700,000,000.00	  	  	Barclays Bank PLC	  	Qualifying Lender (other than a Treaty Lender)	  	
					
	 JPMorgan Chase Bank, N.A.
	  	 	700,000,000.00	  	  	JPMorgan Chase Bank, N.A.	  	Qualifying Lender (other than a Treaty Lender)	  	

  
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 SCHEDULE 2 

CONDITIONS PRECEDENT DOCUMENTS 

Part A 
 To Be
Delivered Before The First Request 
 Company 
 1. A
copy of the constitutional documents of the Company. 
 2. A copy of a resolution of the board of directors (or a committee of the board of directors) of
the Company approving the terms of, and the transactions contemplated by, this Agreement. 
 3. If applicable, a copy of a resolution of the board of
directors of the Company establishing the committee referred to in paragraph 2 above. 
 4. A specimen of the signature of each person authorised on behalf
of the Company to execute or witness the execution of any Finance Document or to sign or send any document or notice in connection with any Finance Document. 

5. A certificate of an authorised signatory of the Company: 
  

	(a)	confirming that utilising the Total Commitments in full would not breach any borrowing or guaranteeing limit binding on it; and 

  

	(b)	certifying that each copy document specified in Part A of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement. 

6. A Group structure chart. 
 Legal opinions 

7. A legal opinion of Allen & Overy LLP (legal advisers to the Mandated Lead Arrangers) as to matters of English law, in form and substance
satisfactory to the Mandated Lead Arrangers. 
 8. A customary legal opinion of Davis Polk & Wardwell LLP (legal advisers to the Company on matters
of U.S. law) in form and substance satisfactory to the Mandated Lead Arrangers, with respect to no violation of the Margin Regulations. 
 Other
documents and evidence 
 9. Duly executed copies of each Fee Letter. 

10. Original Financial Statements. 
 Completion 

11. A duly executed copy of the Merger Agreement. 
 12. A
certificate of the Company (signed by an authorised signatory) that: 
  

	(a)	all conditions to the consummation of the Acquisition under the Merger Agreement shall have been, or shall be, satisfied or waived prior to or concurrently with the utilisation of the Facility; and 

  
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	(b)	the payment of the Merger Consideration (as such term is defined in the Merger Agreement) will be payable in accordance with the terms of the Merger Agreement within five Business Days. 

Part B 
 For An
Additional Guarantor 
 Additional Guarantors 
 1.
An Accession Agreement, duly executed by the Company and the Additional Guarantor. 
 2. A copy of the constitutional documents of the Additional Guarantor.

 3. A copy of a resolution of the board of directors of the Additional Guarantor approving the terms of, and the transactions contemplated by, the
Accession Agreement and the Finance Documents. 
 4. A specimen of the signature of each person authorised on behalf of the Additional Guarantor to execute
or witness the execution of any Finance Document or to sign or send any document or notice in connection with any Finance Document. 
 5. In the case of an
Additional Guarantor incorporated in the U.K., a copy of a resolution, signed by all (or any lower percentage agreed by the Facility Agent) of the holders of its issued or allotted shares, approving the terms of, and the transactions contemplated
by, the Accession Agreement. 
 6. If applicable, a copy of a resolution of the board of directors of each corporate shareholder in the Additional Guarantor
approving the resolution referred to in paragraph 5 above. 
 7. In the case of an Additional Guarantor incorporated in any jurisdiction other than the
U.K., a copy of a resolution of the shareholders of that Additional Guarantor approving the terms of, and the transactions contemplated by, the Accession Agreement and the Finance Documents. 

8. A certificate of an authorised signatory of the Additional Guarantor: 
  

	(a)	confirming that utilising and/or guaranteeing (as applicable) the Total Commitments in full would not breach any limit binding on it; and 

 

	(b)	certifying that each copy document specified in Part B of this Schedule is correct, complete and in full force and effect as at a date no earlier than the date of the Accession Agreement. 

9. If available, a copy of the latest audited accounts of the Additional Guarantor. 

10. Compliance with Clause 17.5 (“Know Your Customer” checks) 

Legal opinions 
 11. A legal opinion of Allen &
Overy LLP, legal advisers to the Facility Agent, addressed to the Finance Parties. 
 12. If the Additional Guarantor is incorporated in a jurisdiction
other than England or the United States of America (or any state thereof, including the District of Columbia), a legal opinion from legal advisers to the Facility Agent in that jurisdiction, addressed to the Finance Parties. 

13. If the Additional Guarantor is incorporated or formed in the United States of America (or any state thereof, including the District of Columbia), a legal
opinion from legal advisers to the Additional Guarantor in that jurisdiction, addressed to the Finance Parties. 

  
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 Other documents and evidence 

14. A copy of any other authorisation or other document, opinion or assurance which the Facility Agent has notified the Company is necessary in connection with
the entry into and performance of, and the transactions contemplated by, the Accession Agreement or for the validity and enforceability of any Finance Document. 

  
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 SCHEDULE 3 

REQUESTS 
 Part A

 Form of Request 
  

			
	To:	  	[                    ] as Facility Agent
		
	From:	  	[BORROWER]
		
	Date:	  	[            ], 201[—]

 Smith & Nephew PLC – U.S.$1,400,000,000 Facility Agreement dated
[—], 2014 (the Agreement) 
 1. We refer to the Agreement. This is
a Request. 
 2. We wish to borrow a Loan on the following terms: 
  

	(a)	Utilisation Date: [                    ] 

 

	(b)	Amount: [            ] 

  

	(c)	Term: [        ]. 

 3. Our payment instructions are:
[                    ]. 
 4. We confirm that each
condition precedent under the Agreement which must be satisfied on the date of this Request is so satisfied. 
 5. This Request is irrevocable. 

 

			
	By:	 	
	
	[BORROWER]

  
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 Part B 

Form of Selection Notice 
  

			
	From:	  	[Borrower]
		
	To:	  	[Facility Agent]
		
	Dated:	  	

 Dear Sirs 
 Smith &
Nephew PLC – U.S.$1,400,000,000 Facility Agreement dated [—], 2014 (the Agreement) 

1. We refer to the Agreement. This is a Selection Notice. Terms defined in the Agreement have the same meaning in this Selection Notice unless given a
different meaning in this Selection Notice. 
 2. We refer to the following Loan[s] with a Term ending on
[                    ].* 
 3. [We request that the
above Loan[s] be divided into [        ] Loans with the following amounts and Terms:]** 
 or 

[We request that the next Term for the above Loan[s] is [        ]].*** 

4. This Selection Notice is irrevocable. 
  

	
	Yours faithfully
	
	  

	 authorised signatory for

[BORROWER]

  

	*	Insert details of all Loans which have a Term ending on the same date. 

	**	Use this option if division of Loans is requested. 

	***	Use this option if sub-division is not required. 

  
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 SCHEDULE 4 

FORM OF TRANSFER CERTIFICATE 
  

			
	To:	  	[                    ] as Facility Agent and Smith & Nephew plc as the Company, for and on behalf of each Obligor
		
	From:	  	[THE EXISTING LENDER] (the Existing Lender) and [THE NEW LENDER] (the New Lender)
		
	Date:	  	[                    ]

 Smith & Nephew PLC – U.S.$1,400,000,000 Facility Agreement dated [•], 2014 (the
Agreement) 
 We refer to the Agreement. This is a Transfer Certificate. 

1. The Existing Lender transfers by novation to the New Lender the Existing Lender’s rights and obligations referred to in the Schedule below in
accordance with the terms of the Agreement. 
 2. The proposed Transfer Date is
[                    ]. 
 3. [The New Lender confirms
that it is: 
  

	(a)	[not a Qualifying Lender; 

  

	(b)	a Qualifying Lender (other than a Treaty Lender); or 

  

	(c)	a Treaty Lender.]1 

 4. [The New Lender confirms that the
person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either: 
  

	(a)	a company resident in the United Kingdom for United Kingdom tax purposes; 

  

	(b)	a partnership each member of which is: 

  

	 	(i)	a company so resident in the United Kingdom; or 

  

	 	(ii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of
section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or 

  

	(c)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the
chargeable profits (within the meaning of section 19 of the CTA) of that company.]2 

 5.
[The New Lender hereby confirms that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, that its reference number is [    ], that it is tax resident in
[        ], and notifies the Company that the Borrower must make an application to HMRC under form DTTP2 within 30 days of the Transfer Date. 

	 	

  

	1 	Delete as applicable – each New Lender is required to confirm which of these three categories it falls within. 

	2 	Include if New Lender comes within paragraph (i)(B) of the definition of Qualifying Lender in clause 12.1. 

  
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 6. The administrative details of the New Lender for the purposes of the Agreement are set out in the
Schedule. 
 7. This Transfer Certificate and any non-contractual obligations arising out of or in connection with this Transfer Certificate are governed by
English law. 

  
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 THE SCHEDULE 

Rights and obligations to be transferred by novation 

[insert relevant details, including applicable Commitment (or part)] 

Administrative details of the New Lender 

[insert details of Facility Office, address for notices and payment details etc.] 

 

									
	[EXISTING LENDER]	 		 	[NEW LENDER]
					
	By:	 		 		 	By:	 	

  

			
	The Transfer Date is confirmed by the Facility Agent as [                    ].
		
	[FACILITY AGENT]	  	

  

			
	By:	 	

  
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 SCHEDULE 5 

FORM OF ACCESSION AGREEMENT 
  

			
	To:	  	[                    ] as Facility Agent
		
	From:	  	Smith & Nephew plc and [Proposed Guarantor]
		
	Date:	  	[                    ]

 Smith & Nephew PLC – U.S.$1,400,000,000 Facility Agreement dated
[—], 2014 (the Agreement) 
 We refer to the Agreement. This is
an Accession Agreement. 
 [Name of company] of [address/registered office] agrees to become an Additional Guarantor and to be bound by the terms of the
Agreement as an Additional Guarantor. 
 Jurisdiction of incorporation of new Obligor; registered number of new Obligor; and administrative details of new
Obligor. 
 This Accession Agreement and any non-contractual obligations arising out of or in connection with this Accession Agreement are governed by
English law. 
  

			
	Smith & Nephew plc
		
	By:	 	

 [EXECUTED AND DELIVERED AS A DEED BY PROPOSED GUARANTOR] 

 

			
	[By:]	 	

  
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 SCHEDULE 6 

FORM OF RESIGNATION REQUEST 
  

			
	To:	  	[                    ] as Facility Agent
		
	From:	  	Smith & Nephew plc and [relevant Obligor]
		
	Date:	  	[                    ]

 Smith & Nephew PLC – U.S.$1,400,000,000 Facility Agreement dated
[—], 2014 (the Agreement) 
 We refer to the Agreement. This is a
Resignation Request. 
 1. We request that [resigning Obligor] be released from its obligations as a Guarantor under the Agreement. 

2. We confirm that no Default is outstanding or would result from the acceptance of this Resignation Request. 

3. We confirm that as at the date of this Resignation Request no amount owed by [resigning Obligor] under the Agreement is outstanding. 

4. This Resignation Request and any non-contractual obligations arising out of or in connection with this Resignation Request are governed by English law.

  

									
	Smith & Nephew plc	 		 	[Relevant Obligor]
					
	By:	 		 		 	By:	 	

 The Facility Agent confirms that this resignation takes effect on
[                    ]. 
 [FACILITY AGENT] 

 

			
	By:	 	

  
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 SCHEDULE 7 

FORM OF COMPLIANCE CERTIFICATE 
  

			
	To:	  	[                    ] as Facility Agent
		
	From:	  	Smith & Nephew plc
		
	Date:	  	[                    ]

 Smith & Nephew PLC – U.S.$1,400,000,000 Facility Agreement dated
[—], 2014 (the Agreement) 
  

	1.	We refer to the Agreement. This is a Compliance Certificate. 

  

	2.	We confirm that as at [relevant testing date]: 

  

	(a)	Consolidated EBITDA for the Measurement period then ending was [                    ]; and Consolidated Total Net
Borrowings are [        ]; therefore, Consolidated Total Net Borrowings are [        ] x Consolidated EBITDA; and 

 

	(b)	Consolidated EBITA for the Measurement period then ending was [                    ] and Consolidated Net Interest
Payable was [        ]; therefore, the ratio of Consolidated EBITA to Consolidated Net Interest Payable was [    ] to 1. 

 

	3.	We set out below calculations establishing the figures in paragraph 2 above: 

[            ]. 

 

	4.	[We confirm that no Default is outstanding as at [relevant testing date]* 

 Smith & Nephew plc

  

			
	By:	 	

 [insert applicable certification language] 

 

	*	If this statement cannot be made, the certificate should identify any Default that is outstanding and the steps, if any, being taken to remedy it. 

  
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 SCHEDULE 8 

FORM OF INCREASE CONFIRMATION 
 To: [—] as Facility Agent and Smith & Nephew plc as the Company, for and on behalf of each Obligor 

From: [the Increase Lender] (the Increase Lender) 

Dated: 
 Smith & Nephew PLC –
U.S.$1,400,000,000 Facility Agreement dated [—], 2014 (the Agreement) 

1. We refer to the Agreement. This is an Increase Confirmation. [Terms] defined in the Agreement have the same meaning in this Increase Confirmation unless
given a different meaning in this Increase Confirmation. 
 2. We refer to Clause 2.2 (Increase). 

3. The Increase Lender agrees to assume and will assume all of the obligations corresponding to the Commitment specified in the Schedule (the Relevant
Commitment) as if it was an Original Lender under the Agreement. 
 4. The proposed date on which the increase in relation to the Increase Lender
and the Relevant Commitment is to take effect (the Increase Date) is [—]. 
 5. On the
Increase Date, the Increase Lender becomes party to the Finance Documents as a Lender. 
 6. The Facility Office and address, fax number and attention
details for notices to the Increase Lender for the purposes of Clause 33.2 (Contact details) are set out in the Schedule. 
 7. The Increase Lender
expressly acknowledges the limitations on the Lenders’ obligations referred to in paragraph (f) of Clause 2.2 (Increase). 
 8. [The
Increase Lender confirms that it is: 
  

	 	(a)	[not a Qualifying Lender] 

  

	 	(b)	[a Qualifying Lender (other than a Treaty Lender);] 

  

	 	(c)	[a Treaty Lender;] 3 

 9. [The Increase Lender confirms
that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either: 
  

	(a)	a company resident in the United Kingdom for United Kingdom tax purposes; 

  

	(b)	a partnership each member of which is: 

  

	 	(i)	a company so resident in the United Kingdom; or 

  

	3 	Delete as applicable — each Increase Lender is required to confirm which of these three categories it falls within. 

  
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	 	(ii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of
section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or 

  

	(c)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the
chargeable profits (within the meaning of section 19 of the CTA) of that company.]4 

10. [The Increase Lender hereby confirms that it is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, that its reference number
is [    ], that it is tax resident in [    ], and notifies the Company that the Borrower must make an application to HMRC under form DTTP2 within 30 days of the Relevant Increase Date. 

11. Each Finance Document may be executed in any number of counterparts, and by each party on separate counterparts. Each counterpart is an original, but all
counterparts shall together constitute one and the same instrument. Delivery of a counterpart of a Finance Document by e-mail attachment or telecopy shall be an effective mode of delivery. 

12. This Increase Confirmation and any non contractual obligations arising out of or in connection with this Increase Confirmation are governed by English
law. 
 This Increase Confirmation has been entered into on the date stated at the beginning of this Increase Confirmation. 

 

	4 	Include if Increase Lender comes within paragraph (i)(B) of the definition of Qualifying Lender in clause 12.1. 

  
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 THE SCHEDULE 

Relevant Commitment/rights and obligations to be assumed by the Increase Lender 

[insert relevant details] 

[Facility office address, fax number and attention details for notices and account details for payments] 

[Increase Lender] 
 By: 

This Increase Confirmation is accepted as an Increase Confirmation for the purposes of the Agreement by the Facility Agent and the Increase Date is confirmed
as [—]. 
 [FACILITY AGENT] 

By: 

  
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 SCHEDULE 9 

TIMETABLE 
  

			
	Delivery of a duly completed Utilisation Request (Clause 5.1 (Giving of Requests) or Selection Notice (Clause 9.1 (Selection of Terms))	  	Noon three Business Days before the Utilisation Date
		
	Facility Agent notifies the Lenders of the Loan in accordance with Clause 5.4 (Advance of Loan).	  	 Close of business in London on the later of:
  

(a)    the date which is three Business Days before the Utilisation Date; and

 
 (b)    the date on which the
Facility Agent receives the Request.

		
	LIBOR is fixed	  	Rate Fixing Day as of 11:00 a.m.
		
	A Reference Bank fails to supply a quotation under Clause 10.1 (Failure of a Reference Bank to supply a rate)	  	Noon on the Rate Fixing Day

  
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 SIGNATORIES 
  

							
	The Company
	
	SMITH & NEPHEW PLC
				
		 	/s/ Julie Brown	 		 	/s/ Susan Swabey
				
	By:	 	JULIE BROWN	 	By:	 	SUSAN MARGARET SWABEY
				
	Title:	 	Director	 	Title:	 	Company Secretary

 Facility Agreement 

CONFORMED COPY 
  

			
	The Mandated Lead Arrangers
	
	BARCLAYS BANK PLC
		
		 	/s/ John Hogarth
		
	By:	 	JOHN HOGARTH
		
	Title:	 	Director
	
	J.P. MORGAN LIMITED
		
		 	/s/ Jonathan Richards
		
	By:	 	JONATHAN RICHARDS
		
	Title:	 	Executive Director
	
	The Original Lenders
	
	BARCLAYS BANK PLC
		
		 	/s/ John Hogarth
		
	By:	 	JOHN HOGARTH
		
	Title:	 	Director
	
	JPMORGAN CHASE BANK, N.A.
		
		 	/s/ Jonathan Richards
		
	By:	 	JONATHAN RICHARDS
		
	Title:	 	Executive Director
	
	The Underwriters
	
	BARCLAYS BANK PLC
		
		 	/s/ John Hogarth
		
	By:	 	JOHN HOGARTH
		
	Title:	 	Director
	
	JPMORGAN CHASE BANK, N.A.
		
		 	/s/ Jonathan Richards
		
	By:	 	JONATHAN RICHARDS
		
	Title:	 	Executive Director
	
	The Facility Agent
	
	J.P. MORGAN EUROPE LIMITED
		
		 	/s/ Jonathan Richards
		
	By:	 	JONATHAN RICHARDS
		
	Title:	 	Executive DirectorEX-4(a)(vi)

 Exhibit 4(a)(vi) 

EXECUTION VERSION 

AGREEMENT AND PLAN OF MERGER 

dated as of
 February 2, 2014

among
 ARTHROCARE CORPORATION,

 SMITH & NEPHEW, INC. 

ROSEBUD ACQUISITION CORPORATION

and
 SMITH & NEPHEW
PLC 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	PAGE	 
	
	ARTICLE 1	  
	DEFINITIONS	  
			
	 Section 1.01.
	  	 Definitions
	  	 	1	  
	 Section 1.02.
	  	 Other Definitional and Interpretative Provisions
	  	 	12	  
	
	ARTICLE 2	  
	THE MERGER	  
			
	 Section 2.01.
	  	 The Merger
	  	 	13	  
	 Section 2.02.
	  	 Conversion of Shares
	  	 	13	  
	 Section 2.03.
	  	 Surrender and Payment
	  	 	14	  
	 Section 2.04.
	  	 Dissenting Shares
	  	 	16	  
	 Section 2.05.
	  	 Equity Awards
	  	 	17	  
	 Section 2.06.
	  	 Adjustments
	  	 	18	  
	 Section 2.07.
	  	 Withholding Rights
	  	 	19	  
	 Section 2.08.
	  	 Lost Certificates
	  	 	19	  
	
	ARTICLE 3	  
	THE SURVIVING CORPORATION	  
			
	 Section 3.01.
	  	 Certificate of Incorporation
	  	 	19	  
	 Section 3.02.
	  	 Bylaws
	  	 	19	  
	 Section 3.03.
	  	 Directors and Officers
	  	 	20	  
	
	ARTICLE 4	  
	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  
			
	 Section 4.01.
	  	 Corporate Existence and Power
	  	 	20	  
	 Section 4.02.
	  	 Corporate Authorization
	  	 	20	  
	 Section 4.03.
	  	 Governmental Authorization
	  	 	21	  
	 Section 4.04.
	  	 Non-contravention
	  	 	21	  
	 Section 4.05.
	  	 Capitalization
	  	 	22	  
	 Section 4.06.
	  	 Subsidiaries
	  	 	23	  
	 Section 4.07.
	  	 SEC Filings and the Sarbanes-Oxley Act
	  	 	24	  
	 Section 4.08.
	  	 Financial Statements
	  	 	25	  
	 Section 4.09.
	  	 Disclosure Documents
	  	 	26	  
	 Section 4.10.
	  	 Absence of Certain Changes
	  	 	26	  
	 Section 4.11.
	  	 No Undisclosed Material Liabilities
	  	 	26	  
	 Section 4.12.
	  	 Compliance with Applicable Laws
	  	 	27	  
	 Section 4.13.
	  	 Litigation
	  	 	31	  

  
 i 

							
	Section 4.14.	  	Properties	  	 	31	  
	Section 4.15.	  	Intellectual Property	  	 	32	  
	Section 4.16.	  	Taxes	  	 	35	  
	Section 4.17.	  	Employees and Employee Benefit Plans	  	 	36	  
	Section 4.18.	  	Environmental Matters	  	 	40	  
	Section 4.19.	  	Material Contracts	  	 	40	  
	Section 4.20.	  	Insurance	  	 	43	  
	Section 4.21.	  	Finders’ Fees	  	 	44	  
	Section 4.22.	  	Opinion of Financial Advisor	  	 	44	  
	Section 4.23.	  	Antitakeover Statutes	  	 	44	  
	
	ARTICLE 5	  
	REPRESENTATIONS AND WARRANTIES OF PARENT	  
			
	Section 5.01.	  	Corporate Existence and Power	  	 	44	  
	Section 5.02.	  	Corporate Authorization	  	 	45	  
	Section 5.03.	  	Governmental Authorization	  	 	45	  
	Section 5.04.	  	Non-contravention	  	 	45	  
	Section 5.05.	  	Disclosure Documents	  	 	46	  
	Section 5.06.	  	Finders’ Fees	  	 	46	  
	Section 5.07.	  	Financing	  	 	46	  
	Section 5.08.	  	No Interested Stockholder	  	 	46	  
	Section 5.09.	  	Ownership of Merger Subsidiary; No Prior Activities	  	 	47	  
	Section 5.10.	  	Litigation	  	 	47	  
	Section 5.11.	  	Management Agreements	  	 	47	  
	Section 5.12.	  	Disclaimer of Other Representations and Warranties	  	 	47	  
	
	ARTICLE 6	  
	COVENANTS OF THE COMPANY	  
			
	Section 6.01.	  	Conduct of the Company	  	 	48	  
	Section 6.02.	  	Company Stockholder Meeting; Company Proxy Statement	  	 	52	  
	Section 6.03.	  	No Solicitation; Other Offers	  	 	53	  
	Section 6.04.	  	Access to Information	  	 	57	  
	Section 6.05.	  	Compensation Arrangements	  	 	58	  
	Section 6.06.	  	Certain Litigation	  	 	58	  
	Section 6.07.	  	Company Series A Preferred Stock	  	 	58	  
	
	ARTICLE 7	  
	COVENANTS OF PARENT	  
			
	Section 7.01.	  	Obligations of Merger Subsidiary	  	 	58	  
	Section 7.02.	  	Director and Officer Liability	  	 	59	  
	Section 7.03.	  	Employee Matters	  	 	60	  

  
 ii 

							
	ARTICLE 8	  
	COVENANTS OF PARENT AND THE COMPANY	  
			
	Section 8.01.	  	Reasonable Best Efforts	  	 	63	  
	Section 8.02.	  	Certain Filings	  	 	68	  
	Section 8.03.	  	Public Announcements	  	 	69	  
	Section 8.04.	  	Further Assurances	  	 	69	  
	Section 8.05.	  	Notices of Certain Events	  	 	69	  
	Section 8.06.	  	De-listing; Deregistration	  	 	70	  
	Section 8.07.	  	Takeover Statutes	  	 	70	  
	
	ARTICLE 9	  
	CONDITIONS TO THE MERGER	  
			
	Section 9.01.	  	Conditions to the Obligations of Each Party	  	 	70	  
	Section 9.02.	  	Conditions to the Obligations of Parent and Merger Subsidiary	  	 	71	  
	Section 9.03.	  	Conditions to the Obligations of the Company	  	 	72	  
	
	ARTICLE 10	  
	TERMINATION	  
			
	Section 10.01.	  	Termination	  	 	73	  
	Section 10.02.	  	Effect of Termination	  	 	75	  
	
	ARTICLE 11	  
	MISCELLANEOUS	  
			
	Section 11.01.	  	Notices	  	 	75	  
	Section 11.02.	  	Survival of Representations and Warranties	  	 	77	  
	Section 11.03.	  	Amendments and Waivers	  	 	77	  
	Section 11.04.	  	Expenses	  	 	78	  
	Section 11.05.	  	Disclosure Schedule and SEC Document References	  	 	79	  
	Section 11.06.	  	Binding Effect; Benefit; Assignment	  	 	80	  
	Section 11.07.	  	Governing Law	  	 	80	  
	Section 11.08.	  	Jurisdiction	  	 	80	  
	Section 11.09.	  	WAIVER OF JURY TRIAL	  	 	81	  
	Section 11.10.	  	Counterparts; Effectiveness	  	 	81	  
	Section 11.11.	  	Entire Agreement	  	 	81	  
	Section 11.12.	  	Severability	  	 	81	  
	Section 11.13.	  	Guarantee	  	 	81	  
	Section 11.14.	  	Specific Performance	  	 	82	  

  
 iii 

 AGREEMENT AND PLAN OF MERGER 

AGREEMENT AND PLAN OF MERGER (this “Agreement”) dated as of February 2, 2014, among ArthroCare Corporation, a Delaware
corporation (the “Company”), Smith & Nephew, Inc., a Delaware corporation (“Parent”), and Rosebud Acquisition Corporation, a Delaware corporation and a wholly owned subsidiary of Parent (“Merger
Subsidiary”), and, solely for purposes of Section 8.01, Section 11.04(b) and Section 11.13, Smith & Nephew plc, an English public limited company (“Parent Holdco”). 

W I T N E S S E T H : 

WHEREAS, the respective Boards of Directors of the Company, Parent and Merger Subsidiary have approved this Agreement, and the respective
Boards of Directors of the Company and Merger Subsidiary deemed it advisable that the respective stockholders of the Company and Merger Subsidiary approve and adopt this Agreement pursuant to which, among other things, Parent would acquire the
Company by means of a merger of Merger Subsidiary with and into the Company on the terms and subject to the conditions set forth in this Agreement; 

WHEREAS, Parent has required, as a condition and inducement to its willingness to enter into this Agreement, that the Persons listed on
Section 1.01(a)(i) of the Parent Disclosure Schedule each simultaneously herewith enter into a voting agreement (the “Voting Agreements”) dated as of the date hereof, providing that each such Person shall vote in favor of and
support the Merger and the other transactions contemplated hereby; and 
 WHEREAS, prior to the Effective Time, the Company shall cause each
outstanding share of Company Series A Preferred Stock to be converted into shares of Company Common Stock in accordance with the terms of the Certificate of Designations and, as of the Effective Time, no shares of Company Series A Preferred Stock
shall be issued or outstanding. 
 NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and
agreements contained herein, the parties hereto agree as follows: 
 ARTICLE 1 

DEFINITIONS 

Section 1.01. Definitions. (a) As used herein, the following terms have the following meanings: 

“1933 Act” means the Securities Act of 1933. 

 “1934 Act” means the Securities Exchange Act of 1934. 

“Acquisition Proposal” means, other than the transactions contemplated by this Agreement, any Third Party offer, proposal or
inquiry relating to, or any Third Party indication of interest in, (i) any acquisition or purchase, direct or indirect, of 15% or more of the consolidated assets of the Company and its Subsidiaries or 15% or more of any class of equity or
voting securities of the Company or any of its Subsidiaries whose assets, individually or in the aggregate, constitute 15% or more of the consolidated assets of the Company and its Subsidiaries, (ii) any tender offer (including a self-tender
offer) or exchange offer that, if consummated, would result in such Third Party beneficially owning 15% or more of any class of equity or voting securities of the Company or any of its Subsidiaries whose assets, individually or in the aggregate,
constitute 15% or more of the consolidated assets of the Company and its Subsidiaries or (iii) a merger, consolidation, share exchange, business combination, sale of substantially all the assets, reorganization, recapitalization, liquidation,
dissolution or other similar transaction involving the Company or any of its Subsidiaries whose assets, individually or in the aggregate, constitute 15% or more of the consolidated assets of the Company and its Subsidiaries. 

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under
common control with such Person. 
 “Anti-Corruption Laws” means (i) the U.S. Foreign Corrupt Practices Act of 1977
and (ii) any similar Applicable Law of any other jurisdiction. 
 “Antitrust Laws” means the HSR Act and any other
Applicable Law that is designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade or lessening of competition through merger or acquisition. 

“Applicable Law” means, with respect to any Person, any transnational, domestic or foreign federal, state or local law
(statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Authority
(including Health Care Laws) that is binding upon or applicable to such Person, as amended unless expressly specified otherwise. 

“Business Day” means a day, other than Saturday, Sunday or any other day on which commercial banks in New York, New York or
the City of London are authorized or required by Applicable Law to close. 
 “Certificate of Designations” means the
certificate of designations of the Company Series A Preferred Stock. 

  
 2 

 “CMS” means Centers for Medicare and Medicaid Services. 

“Code” means the Internal Revenue Code of 1986. 

“Collective Bargaining Agreement” means any written or oral agreement, memorandum of understanding or other contractual
obligation between the Company or any of its Subsidiaries and any labor organization or other authorized employee representative representing Service Providers. 

“Company 10-K” means the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2012. 

“Company Balance Sheet” means the consolidated balance sheet of the Company and its Subsidiaries as of September 30,
2013 and the footnotes thereto set forth in the Company’s quarterly report on Form 10-Q for the quarterly period then ended. 

“Company Balance Sheet Date” means September 30, 2013. 

“Company Common Stock” means the common stock, $0.001 par value, of the Company. 

“Company Disclosure Schedule” means the disclosure schedule dated the date hereof regarding this Agreement that has been
provided by the Company to Parent and Merger Subsidiary. 
 “Company Material Adverse Effect” means a material adverse
effect on (i) the financial condition, business or results of operations of the Company and its Subsidiaries, taken as a whole, excluding any effect resulting from or arising out of (A) changes in the financial or securities markets or
general economic or political conditions in the United States or elsewhere in the world, (B) changes in GAAP or in Applicable Law, or any interpretation thereof, (C) changes or conditions generally affecting the industry in which the
Company and its Subsidiaries operate, (D) acts of war, sabotage or terrorism or any escalation or worsening thereof or any natural disasters, (E) the announcement, pendency or consummation of the transactions contemplated by this Agreement
(it being understood that this clause (E) shall not apply to any representation or warranty of the Company in Section 4.03, Section 4.04, Section 4.12(b), Section 4.12(e), Section 4.15(c)(ii), Section 4.17(g) or
Section 4.17(j) that is intended to address the consequences of the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby), (F) any failure, in and of itself, by the Company and
its Subsidiaries to meet any internal or third party budgets, projections, forecasts or predictions of financial performance for any period, (G) any change, in and of itself, in the trading price or trading volume of Company Common Stock on the
NASDAQ, (H) events relating to the 

  
 3 

 
Products, including Product candidates and Products in development, of any Person (other than, in each case, Products of the Company or any of its Subsidiaries) or (I) the pending actions,
suits, investigations or proceedings involving the Company’s former chief executive officer and chief financial officer and any other former officers of the Company related to the Company’s previously publicly disclosed revenue
restatements (but only to the extent publicly disclosed by the Company in filings with the SEC prior to the date hereof), including any obligation of the Company to indemnify such former offers and advance expenses in connection with such actions;
provided, however, that the changes, events, circumstances or occurrences set forth in clauses (A), (B), (C) and (D) above may be taken into account in determining whether a “Company Material Adverse Effect” has
occurred or would reasonably be expected to occur to the extent that such changes, events, circumstances or occurrences have a disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to the other participants in the
principal industry in which the Company and its Subsidiaries conduct their businesses, and then only to the extent of such disproportionality; provided, further, that the underlying causes of any events set forth in clauses
(F) and (G) that are not otherwise excluded from the definition of a “Company Material Adverse Effect” may be taken into account in determining whether a “Company Material Adverse Effect” has occurred or would
reasonably be expected to occur; or (ii) the Company’s ability to consummate the Merger or the other transactions contemplated by this Agreement. 

“Company Performance Share” means an award granted pursuant to any Equity Plan of performances shares with respect to shares
of Company Common Stock. 
 “Company Restricted Stock Unit” means an award granted pursuant to any Equity Plan of
restricted stock units, including any such award that may be settled in cash, with respect to shares of Company Common Stock. 

“Company Series A Preferred Stock” means the Series A 3.00% Convertible Preferred Stock, $0.001 par value, of the Company.

 “Company Stock Appreciation Right” means any stock appreciation right with respect to shares of Company Common Stock,
including any such award that may be settled in cash, granted pursuant to any Equity Plan. 
 “Company Stock Option” means
any option to purchase shares of Company Common Stock, including any such option that may be settled in cash, granted pursuant to any Equity Plan. 

“Company Transition Incentive Plan” means the Transition Incentive Plan set forth on Section 4.17(a) of the Company
Disclosure Schedule. 

  
 4 

 “Contract” or “contract” means any written contract, agreement,
obligation, commitment, arrangement, understanding, instrument, permit, lease or license. 
 “Delaware Law” means the
General Corporation Law of the State of Delaware. 
 “Employee Plan” means any (i) “employee benefit plan”
as defined in Section 3(3) of ERISA, (ii) compensation, employment, consulting, severance, termination protection, change in control, transaction bonus, retention or similar plan, agreement, arrangement, program or policy or
(iii) other plan, agreement, arrangement, program or policy providing for compensation, bonuses, profit-sharing, equity or equity-based compensation or other forms of incentive or deferred compensation, vacation benefits, insurance (including
any self-insured arrangement), medical, dental, vision, prescription or fringe benefits, life insurance, relocation or expatriate benefits, perquisites, disability or sick leave benefits, employee assistance program, supplemental unemployment
benefits or post-employment or retirement benefits (including compensation, pension, health, medical or insurance benefits), in each case whether or not written (x) that is sponsored, maintained, administered, contributed to or entered into by
the Company or any of its Affiliates for the current or future benefit of any current or former Service Provider or (y) for which the Company or any of its Subsidiaries has any direct or indirect liability. For the avoidance of doubt, a
Collective Bargaining Agreement shall constitute an agreement for purposes of clauses (ii) and (iii). 
 “Environmental
Laws” means any Applicable Law or any Contract with a Governmental Authority relating to the environment, health and safety or any pollutant, contaminant, chemical or toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous
substance, waste or material. 
 “Environmental Permits” means all permits, licenses, consents, variances, orders,
exemptions, franchises, certificates, approvals and other similar authorizations of Governmental Authorities required by Environmental Laws and affecting, or relating to, the Company or any of its Subsidiaries. 

“Equity Plan” means any equity compensation plan or arrangement of the Company. 

“ERISA” means the Employee Retirement Income Security Act of 1974. 

“ERISA Affiliate” of any entity means any other entity that, together with such entity, would be treated as a single employer
under Section 414 of the Code. 
 “FDA” means the United States Food and Drug Administration. 

  
 5 

 “Federal Health Care Program” means each of the health care programs defined at
42 U.S.C. § 1320a-7b(f). 
 “GAAP” means generally accepted accounting principles in the United States. 

“Governmental Authority” means any transnational, domestic or foreign federal, state or local governmental, regulatory or
administrative authority, department, court, agency, commission or official, including any political subdivision thereof, or any non-governmental self-regulatory agency, commission or authority, in each case of competent jurisdiction and with
authority to act with respect to the matter in question. 
 “Hazardous Substance” means any substance defined as or
regulated as a “pollutant,” a “contaminant”, a “hazardous substance,” a “hazardous material,” or a “toxic chemical” under any Environmental Law or any substance, waste or material that is or has the
characteristics of being toxic, hazardous, radioactive, ignitable, corrosive or reactive, including any substance, waste or material regulated under any Environmental Law. 

“Health Care Laws” means any and all Applicable Laws relating to the regulation of the health care and medical device
industry or to payment for items or services rendered, provided, dispensed or furnished by health care providers or suppliers, including, without limitation, the following laws: (i) the federal Medicare and Medicaid statutes (which include, but
are not limited to, 42 U.S.C. §§ 1320a-7, 1320a-7a, 1320a-7b and 1320a-7h), the federal TRICARE statute, the Federal False Claims Act (31 U.S.C. § 3729-33), 18 U.S.C. §§ 286 and, with respect to each of the above, any
ordinance, rule, regulation or order issued thereunder or with respect thereto; (ii) all international, multinational, foreign, federal or state laws or regulations applicable to medical device manufacture, registration, approval, importation,
sale, use, distribution, dispensing, marketing and security, (iii) any prohibition on the defrauding of or making any false claim, false statement or misrepresentation of material facts to any third-party payer (including commercial and private
payers) or any Governmental Authority that administers a Federal Health Care Program or state health care program (including, but not limited to, Medicare, Medicaid and state Medicaid Waiver Programs and TRICARE); (iv) the licensure,
certification or registration requirements of health care facilities, services, equipment or health care providers, suppliers of device manufacturers; (v) all state anti-kickback and illegal remuneration laws; (vi) all federal or state
laws pertaining to patient confidentiality and privacy and the confidentiality, privacy or security of Protected Health Information or Personal Data, including, but not limited to, the Health Insurance Portability and Accountability Act of 1996 as
amended by the Health Information Technology for Economic and Clinical Health Act of 2009 

  
 6 

 
and (vii) The Federal Food Drug, and Cosmetic Act, 21 U.S.C. § 321 et seq., and its implementing regulations. 

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976. 

“Intellectual Property Rights” means any and all intellectual property rights or similar proprietary rights throughout the
world, including all (i) national and multinational statutory invention registrations, patents and patent applications of any type issued or applied for in any jurisdiction, including all provisionals, nonprovisionals, divisions, continuations,
continuations-in-part, reissues, extensions, supplementary protection certificates, reexaminations and the equivalents of any of the foregoing in any jurisdiction, and all inventions disclosed in each such registration, patent or patent application
(collectively “Patents”), (ii) trademarks, service marks, trade dress, logos, brand names, certification marks, domain names, trade names, corporate names and other indications of origin, whether or not registered, in any
jurisdiction, and all registrations and applications for registration of the foregoing in any jurisdiction, and all goodwill associated with the foregoing (collectively, “Trademarks”), (iii) copyrights (whether or not
registered) and registrations and applications for registration thereof in any jurisdiction, including all derivative works, moral rights, renewals, extensions, reversions or restorations associated with such copyrights, regardless of the medium of
fixation or means of expression (collectively, “Copyrights”), (iv) trade secrets, know-how, information, data, specifications, processes, methods, knowledge, experience, formulae, skills, techniques, schematics, drawings, blue
prints, utility models, designs, technology, software, inventions, discoveries, ideas and improvements, including manufacturing information and processes, assays, engineering and other manuals and drawings, standard operating procedures, flow
diagrams, regulatory, chemical, pharmacological, toxicological, pharmaceutical, physical and analytical, safety, quality assurance, quality control and clinical data, technical information, research records and similar data and information,
(v) database rights, industrial designs, industrial property rights, publicity rights and privacy rights and (vi) the right to assert, claim or sue and collect damages for the past, present or future infringement, misappropriation or other
violation of any of the foregoing. 
 “International Plan” means any Employee Plan that is not a US Plan. 

“IRS” means the Internal Revenue Service. 

“IT Assets” means computers, computer software, firmware, middleware, servers, workstations, routers, hubs, switches, data
communications lines and all other information technology equipment, and all associated documentation owned 

  
 7 

 
by the Company or its Subsidiaries or licensed or leased by the Company or its Subsidiaries pursuant to written agreement (excluding any public networks). 

“Key Employee” means David Fitzgerald, Todd Newton and each employee of the Company or any of its Subsidiaries who is party
to a continuity agreement. 
 “knowledge of the Company” or “Company’s knowledge” means the actual
knowledge of the individuals listed in Section 1.01(a) of the Company Disclosure Schedule after reasonable inquiry. 

“Licensed Intellectual Property” means any and all Intellectual Property Rights owned by a Third Party and licensed or
sublicensed to the Company or any of its Subsidiaries or for which the Company or any of its Subsidiaries has obtained a covenant not to be sued. 

“Lien” means, with respect to any property or asset, any mortgage, lien, pledge, charge, security interest or encumbrance of
any kind in respect of such property or asset. For purposes of this Agreement, a Person shall be deemed to own subject to a Lien any property or asset that it has acquired or holds subject to the interest of a vendor or lessor under any conditional
sale agreement, capital lease or other title retention agreement relating to such property or asset. 
 “NASDAQ” means the
NASDAQ Stock Market LLC. 
 “OIG” means the United States Department of Health and Human Services Office of the Inspector
General. 
 “Owned Intellectual Property Rights” means any and all Intellectual Property Rights owned or purported to be
owned by the Company or any of its Subsidiaries. 
 “Parent Disclosure Schedule” means the disclosure schedule dated the
date hereof regarding this Agreement that has been provided by Parent to the Company. 
 “Parent Material Adverse Effect”
means a material adverse effect on Parent’s or Merger Subsidiary’s ability to consummate the transactions contemplated by this Agreement. 

“Permitted Liens” means any (i) mechanics Liens and similar Liens for labor, materials or supplies provided with respect
to real property incurred in the ordinary course of business for amounts which are not due and payable or are being contested in good faith, (ii) Liens that do not materially detract from the value of the specific asset affected or the present
use of such asset; (iii) Liens 

  
 8 

 
disclosed on the Company Balance Sheet, (iv) Liens arising by virtue of the transactions contemplated under this Agreement, (v) Liens for Taxes not yet due and payable (or those Taxes
that are being contested in good faith by appropriate proceedings), (vi) zoning, building codes and other land use Applicable Laws regulating the use or occupancy of real property or the activities conducted thereon which are imposed by any
Governmental Authority having jurisdiction over such real property, (vii) easements, covenants, conditions, restrictions, encroachments and other similar matters affecting title to real property which do not materially impair the use of such
real property in the operation of the business conducted thereon, (viii) Liens with respect to leased equipment and (ix) landlord’s Liens. 

“Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Personal Data”
means a natural person’s name, street address, telephone number, e-mail address, photograph, social security number, driver’s license number, passport number, or customer or account number, or any other piece of information that alone or
together with other information allows the identification of a natural person. 
 “Products” with respect to any Person
means medical device products being researched, developed, manufactured, supplied, promoted, tested, distributed, marketed, licensed, commercialized or sold by such Person. 

“Protected Health Information” means individually identifiable health information as defined at 45 C.F.R. §160.103. 

“Restricted Share” means a share of Common Stock that was granted under any Equity Plan and that as of immediately prior to
the Effective Time is subject to forfeiture restrictions. 
 “Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002.

 “SEC” means the Securities and Exchange Commission. 

“Service Provider” means any director, officer, employee or individual independent contractor of the Company or any of its
Subsidiaries. 
 “Subsidiary” means, with respect to any Person, any entity of which securities or other ownership
interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at any time directly or indirectly owned by such Person. 

  
 9 

 “Tax” means any tax, governmental fee or other like assessment or charge in the
nature of a tax (including withholding on amounts paid to or by any Person), together with any interest, penalty, addition to tax or additional amount imposed by any Governmental Authority (a “Taxing Authority”) responsible for the
imposition of any such tax (domestic or foreign). 
 “Tax Grant” means any Tax exemption, Tax holiday or reduced Tax rate
granted by a Costa Rican Taxing Authority with respect to the Company or any of its Subsidiaries that is not generally available to Persons without specific application therefor. 

“Tax Return” means any report, filing, election or return (including any information return) required to be filed with any
Taxing Authority with respect to Taxes, including any schedules, attachments or amendments thereto. 
 “Tax Sharing
Agreements” means all existing agreements or arrangements (whether or not written) binding the Company or any of its Subsidiaries that provide for the allocation, apportionment, sharing or assignment of any Tax liability or benefit, or the
transfer or assignment of income, revenues, receipts, or gains for the purpose of determining any Person’s Tax liability and excluding any indemnification agreement or arrangement pertaining to the sale or lease of assets or subsidiaries or
contained in credit agreements or other commercial agreements the primary purposes of which do not relate to Taxes. 
 “Third
Party” means any Person, including as defined in Section 13(d) of the 1934 Act, other than Parent or any of its Affiliates. 

“Trade Secrets” means trade secrets and confidential information and rights in any jurisdiction to limit the use or
disclosure thereof by any Person. 
 “US Plan” means any Employee Plan that covers Service Providers located primarily
within the United States. 
 “WARN” means the Worker Adjustment and Retraining Notification Act and any comparable foreign,
state or local law. 
 (b) Each of the following terms is defined in the Section set forth opposite such term: 

 

			
	 Term
	  	 Section

	Adverse Recommendation Change	  	6.03(a)
	Agreed Actions	  	8.01(a)
	Agreement	  	Preamble
	Board of Directors	  	4.02(b)
	Burdensome Condition	  	8.01(a)

  
 10 

			
	 Term
	  	Section
	Certificates	  	2.03(a)
	Closing	  	2.01(b)
	Company	  	Preamble
	Company Board Recommendation	  	4.02(b)
	Company Filings	  	4.07(a)
	Company Permits	  	4.12(b)
	Company Proxy Statement	  	4.09
	Company Real Property	  	4.14(c)
	Company SEC Documents	  	Article 4
	Company Securities	  	4.05(b)
	Company Submissions	  	4.12(g)(i)
	Company Subsidiary Securities	  	4.06(b)
	Company Stockholder Approval	  	4.02(a)
	Company Stockholder Meeting	  	6.02(a)
	Confidentiality Agreement	  	6.03(b)(i)
	Covered Employee	  	7.03(a)
	Covered Products	  	8.01(a)
	D&O Insurance	  	7.02(c)
	Effective Time	  	2.01(c)
	e-mail	  	11.01
	End Date	  	10.01(b)(i)
	ESPP	  	7.03(f)
	Excluded Products	  	8.01(a)
	Government Funded IP	  	4.15(i)
	Guaranteed Obligations	  	11.13(a)
	HC Company Permits	  	4.12(e)
	Indemnified Person	  	7.02(a)
	Intervening Event	  	6.03(b)(ii)
	Lease	  	4.14(c)
	Leased Real Property	  	4.14(c)
	Material Contract	  	4.19(b)
	Merger	  	2.01(a)
	Merger Consideration	  	2.02(a)
	Merger Subsidiary	  	Preamble
	Non-Employee Holder	  	2.05(d)
	Owned Real Property	  	4.14(b)
	Parent	  	Preamble
	Parent Holdco	  	Preamble
	Parent Plan	  	7.03(c)
	Paying Agent	  	2.03(a)
	Payment Fund	  	2.03(a)
	Registered IP	  	4.15(e)
	Representatives	  	6.03(a)

  
 11 

			
	 Term
	  	Section
	Sanctions	  	4.12(d)
	Superior Proposal	  	6.03(e)
	Surviving Corporation	  	2.01(a)
	Tail Period	  	7.02(c)
	Termination Fee	  	11.04(b)(i)
	Uncertificated Shares	  	2.03(a)

 Section 1.02. Other Definitional and Interpretative Provisions. The words “hereof,”
“herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The table of contents and captions herein are included for
convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified.
All Exhibits and Schedules annexed hereto or referred to herein, including the Company Disclosure Schedule and the Parent Disclosure Schedule, are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any
capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular.
Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they are in fact followed by those
words or words of like import. “Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any statute shall be deemed to
refer to such statute as amended from time to time and to any rules, regulations or interpretations promulgated thereunder. References to any Contract are to such Contract as amended, modified or supplemented from time to time in accordance with the
terms hereof and thereof, but only to the extent, with respect to any Contract listed on any Schedules hereto, that such amendments, modifications or supplements have been listed in the appropriate schedule or provided to Parent prior to the date
hereof. References to any Person include the successors and permitted assigns of that Person. References from or through any date mean, unless otherwise specified, from and including or through and including, respectively. References to
“law,” “laws” or to a particular statute or law shall be deemed also to include any Applicable Law. 

  
 12 

 ARTICLE 2 

THE MERGER 

Section 2.01. The Merger. (a) At the Effective Time, Merger Subsidiary shall be merged (the “Merger”) with
and into the Company in accordance with Delaware Law, whereupon the separate existence of Merger Subsidiary shall cease, and the Company shall be the surviving corporation (the “Surviving Corporation”). 

(b) Subject to the provisions of Article 9, the closing of the Merger (the “Closing”) shall take place in New York City at
the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, New York, 10017 as soon as possible, but in any event no later than five Business Days after the date the conditions set forth in Article 9 (other than conditions
that by their nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permitted by Applicable Law, waiver of such conditions by the party or parties entitled to the benefit thereof at the Closing) have been
satisfied or, to the extent permitted by Applicable Law, waived by the party or parties entitled to the benefit of such conditions, or at such other place, at such other time or on such other date as Parent and the Company may mutually agree. 

(c) At the Closing, the Company and Merger Subsidiary shall file a certificate of merger with the Delaware Secretary of State and make all
other filings or recordings required by Delaware Law in connection with the Merger. The Merger shall become effective at such time (the “Effective Time”) as the certificate of merger is duly filed with the Delaware Secretary of
State (or at such later time as may be agreed by Parent and the Company and specified in the certificate of merger). 
 (d) From and after
the Effective Time, the Surviving Corporation shall possess all the rights, powers, privileges and franchises and be subject to all of the obligations, liabilities, restrictions and disabilities of the Company and Merger Subsidiary, all as provided
under Delaware Law. 
 Section 2.02. Conversion of Shares. At the Effective Time: 

(a) Except as otherwise provided in Section 2.02(b), Section 2.02(c) or Section 2.04, each share of Company Common Stock
outstanding immediately prior to the Effective Time shall be converted into the right to receive $48.25 in cash, without interest (such per share of Company Common Stock amount, the “Merger Consideration”). As of the Effective Time,
all such shares of Company Common Stock shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and shall thereafter represent only 

  
 13 

 
the right to receive the Merger Consideration to be paid in accordance with Section 2.03, without interest. 

(b) Each share of Company Common Stock held by the Company as treasury stock or owned by Parent or Merger Subsidiary or any other direct or
indirect wholly-owned Subsidiary of Parent immediately prior to the Effective Time (other than shares held for the account of clients, customers or other Persons) shall be canceled, and no payment shall be made with respect thereto. 

(c) Each share of Company Common Stock held by any Subsidiary of the Company immediately prior to the Effective Time shall be converted into
such number of shares of stock of the Surviving Corporation such that each such Subsidiary owns the same percentage of the outstanding capital stock of the Surviving Corporation immediately following the Effective Time as such Subsidiary owned in
the Company immediately prior to the Effective Time. 
 (d) Each share of common stock of Merger Subsidiary outstanding immediately prior to
the Effective Time shall be converted into and become one share of common stock of the Surviving Corporation with the same rights, powers and privileges as the shares so converted, and, except as provided in Section 2.02(c), shall constitute
the only outstanding shares of capital stock of the Surviving Corporation. 
 Section 2.03. Surrender and Payment.
(a) Prior to the Effective Time, Parent shall appoint a bank or trust company reasonably acceptable to the Company (the “Paying Agent”) for the purpose of exchanging for the Merger Consideration (or, in the case of Company
Stock Options, an amount based thereon) (i) certificates representing shares of Company Common Stock (the “Certificates”), (ii) subject to Section 2.05, uncertificated shares of Company Common Stock (the
“Uncertificated Shares”) or (iii) Company Stock Options, or Company Restricted Stock Units held by Non-Employee Holders. At or prior to the Effective Time, Parent shall deposit, or cause to be deposited, with the Paying Agent,
in trust for the benefit of the holders of shares of Company Common Stock, cash in U.S. dollars in an amount sufficient to pay the aggregate amount of the Merger Consideration (or, in the case of Company Stock Options, the aggregate amount based
thereon) to be paid in respect of the Certificates, the Uncertificated Shares, and Company Stock Options, Company Stock Appreciation Rights, Company Performance Shares or Company Restricted Stock Units held by Non-Employee Holders (any funds
deposited with the Paying Agent, the “Payment Fund”). The Payment Fund shall not be used for any other purpose. Promptly after the Effective Time, Parent shall send, or shall cause the Paying Agent to send, to each holder of shares
of Company Common Stock or each Non-Employee Holder who holds Company Stock Options, Company Stock Appreciation Rights, Company Performance Shares or Company Restricted Stock 

  
 14 

 
Units at the Effective Time a letter of transmittal and instructions in customary form (which shall specify that the delivery shall be effected, and risk of loss and title shall pass, only upon
proper delivery of the Certificates or transfer of the Uncertificated Shares to the Paying Agent and which shall include customary provisions with respect to delivery of an “agent’s message” with respect to shares of Company Common
Stock held in book-entry form) for use in such exchange. 
 (b) Each holder of shares of Company Common Stock that have been converted into
the right to receive the Merger Consideration shall be entitled to receive, upon (i) surrender to the Paying Agent of a Certificate, together with a properly completed letter of transmittal, or (ii) receipt of an “agent’s
message” by the Paying Agent (or such other evidence, if any, of transfer as the Paying Agent may reasonably request) in the case of a book-entry transfer of Uncertificated Shares, the Merger Consideration in respect of the Company Common Stock
represented by a Certificate or Uncertificated Share. Until so surrendered or transferred, as the case may be, each such Certificate or Uncertificated Share shall represent after the Effective Time for all purposes only the right to receive such
Merger Consideration. Upon such surrender, Parent shall pay, or cause the Paying Agent to pay from the Payment Fund, the Merger Consideration payable to each such holder pursuant to this Article 2. Each Non-Employee Holder of Company Stock Options
that have been converted into the right to receive a cash amount in accordance with Section 2.05 shall be entitled to receive such cash amount upon delivery of a properly completed letter of transmittal. 

(c) If any portion of the Merger Consideration is to be paid to a Person other than the Person in whose name the surrendered Certificate or
the transferred Uncertificated Share is registered, it shall be a condition to such payment that (i) either such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer or such Uncertificated Share shall be
properly transferred and (ii) the Person requesting such payment shall pay to the Paying Agent any transfer or other Taxes required as a result of such payment to a Person other than the registered holder of such Certificate or Uncertificated
Share or establish to the satisfaction of the Paying Agent that such Tax has been paid or is not payable. 
 (d) After the Effective Time,
there shall be no further registration of transfers of shares of Company Common Stock. If, after the Effective Time, Certificates or Uncertificated Shares are presented to the Surviving Corporation or the Paying Agent, they shall be canceled and
exchanged for the Merger Consideration provided for, and in accordance with the procedures set forth, in this Article 2. 
 (e) Any portion
of the Merger Consideration (or, in the case of Company Stock Options, an amount based thereon) deposited with the Paying Agent pursuant to Section 2.03(a) that remains unclaimed by the holders of shares

  
 15 

 
of Company Common Stock or Non-Employee Holders twelve months after the Effective Time shall be returned to Parent, upon demand, and any such holder who has not exchanged shares of Company Common
Stock or Company Stock Options for the Merger Consideration (or, in the case of Company Stock Options, an amount based thereon) in accordance with this Section 2.03 prior to that time shall thereafter look only to Parent for payment of the
Merger Consideration in respect of such shares without any interest thereon. Notwithstanding the foregoing, Parent shall not be liable to any holder of shares of Company Common Stock or any Non-Employee Holder for any amounts properly paid to a
public official pursuant to applicable abandoned property, escheat or similar laws. Any amounts remaining unclaimed by holders of shares of Company Stock that, pursuant to Applicable Law, would otherwise escheat to or become property of any
Governmental Authority shall become, to the extent permitted by Applicable Law, the property of Parent free and clear of any claims or interest of any Person previously entitled thereto. 

(f) Any portion of the Merger Consideration made available to the Paying Agent pursuant to Section 2.03(a) to pay for shares of Company
Common Stock for which appraisal rights have been perfected shall be returned to Parent, upon demand. 
 (g) The Paying Agent shall invest
any cash in the Payment Fund as directed by Parent; provided that Parent shall not direct the Paying Agent to invest any cash in the Payment Fund in any investment if such investment would, or would reasonably be expected to, prevent or delay
timely payment of the Merger Consideration pursuant to this Agreement. Any interest and other income resulting from such investments shall be paid to Parent. In the event the Payment Fund shall be insufficient to pay the aggregate Merger
Consideration (or, in the case of Company Stock Options, the aggregate amount based thereon) payable in connection with the Merger, Parent shall, or shall cause the Surviving Corporation to, promptly deposit additional funds with the Paying Agent in
an amount which is equal to the deficiency in the amount required to make such payment. 
 Section 2.04. Dissenting Shares.
Notwithstanding Section 2.02, shares of Company Common Stock outstanding immediately prior to the Effective Time and held by a holder who has not voted in favor of the Merger or consented thereto in writing and who has demanded appraisal for
such shares in accordance with Delaware Law shall not be converted into the right to receive the Merger Consideration, unless such holder fails to perfect, withdraws or otherwise loses the right to appraisal. If, after the Effective Time, such
holder fails to perfect, withdraws or otherwise loses the right to appraisal, such shares shall be treated as if they had been converted as of the Effective Time into the right to receive the Merger Consideration. The Company shall give Parent
prompt notice of any demands received prior to the Effective Time by the Company for appraisal of 

  
 16 

 
shares of Company Common Stock, and Parent shall have the right to direct all negotiations and proceedings with respect to all such demands. Except with the prior written consent of Parent, the
Company shall not make any payment with respect to, or offer to settle or settle, any such demands. 
 Section 2.05. Equity
Awards. (a) Company Stock Options and Company Stock Appreciation Rights. At the Effective Time, each outstanding Company Stock Option and Company Stock Appreciation Right, whether vested or unvested, shall be cancelled and, in
exchange therefor, Parent shall cause the Surviving Corporation to pay to each former holder of any such cancelled Company Stock Option or Company Stock Appreciation Right a cash amount, if any, equal to the product of (i) the Merger
Consideration less any applicable exercise price per share, and (ii) the number of shares of Company Common Stock covered by such Company Stock Option or Company Stock Appreciation Right, subject to reduction for any Taxes withheld pursuant to
Section 2.07. Each such holder will be given the opportunity to exercise his or her outstanding Company Stock Options or Company Stock Appreciation Rights, as applicable, immediately prior to the Effective Time. In the event that such Company
Stock Options or Company Stock Appreciation Rights, as applicable, are not exercised prior to the Effective Time, such Company Stock Options or Company Stock Appreciation Rights, as applicable, will be cancelled in exchange for a cash payment or for
no consideration, as applicable, in accordance with this Section 2.05. 
 (b) Company Restricted Stock Units. At the Effective Time,
each outstanding Company Restricted Stock Unit, whether or not then exercisable or vested, shall be cancelled and, in exchange therefor, Parent shall cause the Surviving Corporation to pay to each former holder of any such cancelled Company
Restricted Stock Unit a cash amount equal to the product of (i) the Merger Consideration, and (ii) the number of shares of Company Common Stock covered by such Company Restricted Stock Unit, subject to reduction for any Taxes withheld
pursuant to Section 2.07. 
 (c) Company Performance Shares. The performance period for each Company Performance Share shall
terminate as of (i) the date such performance period ends in accordance with the terms of the Company Performance Share if such date is on or earlier than the Effective Time or (ii) if such performance period is scheduled to end after the
Effective Time in accordance with the terms of the Company Performance Share, the last business day of the completed fiscal quarter that immediately precedes the Effective Time, and the performance achievement for such performance period shall be
determined by the Company in accordance with Article VIII of the Company’s Long Term Incentive Program. At the Effective Time, each award of Company Performance Shares shall be cancelled and, in exchange therefor, Parent shall cause the
Surviving Corporation 

  
 17 

 
to pay to each former holder of each award of Company Performance Shares a cash amount with respect to such award equal to the product of (i) the Merger Consideration and (ii) the
greater of (A) the number of Company Performance Shares (rounded down to the nearest whole number) such holder would have been entitled to receive based on the performance determined in accordance with the preceding sentence for the performance
period applicable to such award, and (B) the number of Company Performance Shares (rounded down to the nearest whole number) equal to one-third (1/3rd) of the target number of Company
Performance Shares for such award, subject to reduction for any Taxes withheld pursuant to Section 2.07. 
 (d) Payments through
Payroll. Any payment to which a current or former employee of the Company or any Subsidiary of the Company becomes entitled pursuant Section 2.05, Section 2.05(b) or Section 2.05(c) shall be made through the Surviving
Corporation’s payroll as promptly as practicable following the Effective Time. Parent shall cause the Paying Agent to pay the payments under Section 2.05, Section 2.05(b) or Section 2.05(c) payable to holders who are not current
or former employees of the Company or any Subsidiary of the Company (“Non-Employee Holders”) in accordance with Section 2.03. Notwithstanding the foregoing, for any Company Restricted Stock Unit or Company Performance Share
that constitutes deferred compensation within the meaning of Section 409A of the Code, if making the payment as promptly as practicable following the Effective Time would subject the holder of such Company Restricted Stock Unit or Company
Performance Share to additional tax under Section 409A of the Code, such payment shall be made on the date that it would be made under the applicable Equity Plan absent the application of this Section 2.05. 

(e) At or prior to the Effective Time, the Company, the Board of Directors or the compensation committee of the Board of Directors, as
applicable, shall adopt any resolutions and take any actions which are reasonably necessary to effectuate the provisions of this Section 2.05. 

Section 2.06. Adjustments. If, during the period between the date of this Agreement and the Effective Time, any change in the
outstanding shares of capital stock of the Company shall occur by reason of any reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, subdivision or other similar transaction, or any stock dividend
thereon (excluding, for the avoidance of doubt, any conversion of the Company Series A Preferred Stock and any dividend or distribution of Company Series A Preferred Stock required to be made after the date hereof with respect to the outstanding
shares of Company Series A Preferred Stock pursuant to the Company Certificate of Designations, including any Make Whole Amount (as defined in the Company Certificate of Designations) thereunder) with a record date during such period, the

  
 18 

 
Merger Consideration and any other amounts payable pursuant to this Agreement shall be appropriately and proportionately adjusted to eliminate the effect of such event on the Merger Consideration
or any such other amounts payable pursuant to this Agreement, and such adjustment to the Merger Consideration shall provide to the Company’s stockholders the same economic effect as contemplated by this Agreement prior to such action. 

Section 2.07. Withholding Rights. Notwithstanding any provision contained herein to the contrary, each of the Paying Agent, the
Company, the Surviving Corporation and Parent shall be entitled to deduct and withhold from the consideration otherwise payable to any Person pursuant to this Article 2 such amounts as it is required to deduct and withhold with respect to the making
of such payment under the Code, or any applicable provision of state, local or foreign Tax law. If the Paying Agent, the Company, the Surviving Corporation or Parent, as the case may be, so withholds amounts and such amounts are paid to the
appropriate Governmental Authority in accordance with Applicable Law, such amounts shall be treated for all purposes of this Agreement as having been paid to the holder of the shares of Company Common Stock in respect of whom the Paying Agent, the
Company, the Surviving Corporation or Parent, as the case may be, made such deduction and withholding. 
 Section 2.08. Lost
Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by the Surviving Corporation, the
posting by such Person of a bond, in such reasonable and customary amount as the Surviving Corporation may direct, as indemnity against any claim that may be made against it with respect to such Certificate, the Paying Agent will issue, in exchange
for such lost, stolen or destroyed Certificate, the Merger Consideration to be paid in respect of the shares of Company Common Stock represented by such Certificate, as contemplated by this Article 2. 

ARTICLE 3 
 THE
SURVIVING CORPORATION 
 Section 3.01. Certificate of Incorporation. The certificate of
incorporation of the Company in effect at the Effective Time shall be the certificate of incorporation of the Surviving Corporation until amended in accordance with Applicable Law. 

Section 3.02. Bylaws. The bylaws of Merger Subsidiary in effect at the Effective Time shall be the bylaws of the Surviving
Corporation until amended in accordance with Applicable Law. 

  
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 Section 3.03. Directors and Officers. From and after the Effective Time, until
successors are duly elected or appointed and qualified in accordance with Applicable Law, (i) the directors of Merger Subsidiary at the Effective Time shall be the directors of the Surviving Corporation and (ii) the officers of the Company
at the Effective Time shall be the officers of the Surviving Corporation. 
 ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Subject to Section 11.05, except (x) as disclosed in (i) the Company 10-K, the Company’s quarterly reports on Form 10-Q
for the quarterly periods ended March 31, 2013, June 30, 2013 and September 30, 2013, (iii) each of the Company’s current reports on Form 8-K filed with or furnished to the SEC since the date of the filing of the
Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2013 and prior to the date hereof or (iv) the Company’s proxy statement relating to its 2013 annual meeting of stockholders, in each case, without giving
effect to any amendment thereto filed on or after the date hereof (the documents referred to in the foregoing clauses (i) through (iv), collectively, the “Company SEC Documents”), or (y) as set forth in the Company
Disclosure Schedule, the Company represents and warrants to Parent that: 
 Section 4.01. Corporate Existence and Power. The
Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all corporate power and authority necessary to carry on its business as now conducted. The Company is duly qualified to
do business as a foreign corporation and is in good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified or in good standing would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse Effect. The Company has heretofore made available to Parent true and complete copies of the certificate of incorporation and bylaws of the Company as currently in effect. 

Section 4.02. Corporate Authorization. (a) The execution, delivery and performance by the Company of this Agreement and the
consummation by the Company of the transactions contemplated hereby are within the Company’s corporate powers and, except for the required approval of the Company’s stockholders in connection with the consummation of the Merger, have been
duly authorized by all necessary corporate action on the part of the Company. Assuming the accuracy of the representations and warranties of Parent and Merger Subsidiary set forth in the first sentence of Section 5.08, the affirmative vote of
the holders of a majority of the outstanding shares of Company Common Stock (following the conversion of the outstanding Company Series A Preferred Stock) (the “Company Stockholder Approval”) and a vote with respect to a

  
 20 

 
non-binding advisory proposal to approve the “golden parachute compensation” payable to the Company’s named executive officers in connection with the Merger, are the only votes of
the holders of any of the Company’s capital stock necessary in connection with the consummation of the Merger. This Agreement has been duly executed and delivered by the Company and, assuming this Agreement is a valid and binding obligation of
Parent and Merger Subsidiary, constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
other laws affecting creditors’ rights generally and general principles of equity). 
 (b) At a meeting duly called and held, the
Company’s Board of Directors (the “Board of Directors”) has (i) determined that this Agreement and the transactions contemplated hereby are fair to and in the best interests of the Company’s stockholders,
(ii) approved, adopted and declared advisable this Agreement and the transactions contemplated hereby, including the Merger and (iii) directed that the approval and adoption of this Agreement be submitted to a vote at a meeting of the
Company’s stockholders and (iv) resolved, subject to Section 6.03(b), to recommend approval and adoption of this Agreement by the stockholders of the Company (such recommendation, the “Company Board Recommendation”).

 Section 4.03. Governmental Authorization. The execution, delivery and performance by the Company of this Agreement and the
consummation by the Company of the transactions contemplated hereby require no action by or in respect of, or filing with, any Governmental Authority other than (i) the filing of a certificate of merger with respect to the Merger with the
Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which the Company is qualified to do business, (ii) compliance with any applicable requirements of the HSR Act and the Antitrust Laws
applicable to the Merger in the jurisdictions set forth in Section 4.03 of the Company Disclosure Schedule, (iii) compliance with any applicable requirements of the 1934 Act and any other applicable U.S. state or federal securities laws,
(iv) compliance with the requirements of NASDAQ and (v) any actions or filings the absence of which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. 

Section 4.04. Non-contravention. The execution, delivery and performance by the Company of this Agreement and the consummation of
the transactions contemplated hereby do not and will not (a) assuming the Company Stockholder Approval is obtained, contravene, conflict with, or result in any violation or breach of any provision of the certificate of incorporation or bylaws
of the Company, (b) assuming compliance with the matters referred to in Section 5.03 and receipt of the Company Stockholder Approval, contravene, conflict with 

  
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or result in a violation or breach of any provision of any Applicable Law, (c) assuming compliance with the matters referred to in Section 5.03, require any consent or other action by
any Person under, constitute a default, or an event that, with or without notice or lapse of time or both, would constitute a default, under, or cause or permit the termination, cancellation, acceleration or other change of any right or obligation
or the loss of any benefit to which the Company or any of its Subsidiaries is entitled under any provision of any Material Contract binding upon the Company or any of its Subsidiaries or (d) result in the creation or imposition of any Lien
(other than Permitted Liens) on any asset of the Company or any of its Subsidiaries, with only such exceptions, in the case of each of clauses (b) through (d), as would not reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect. 
 Section 4.05. Capitalization. (a) The authorized capital stock of the Company consists
of (x) 75,000,000 shares of Company Common Stock and (y) 5,000,000 shares of preferred stock, 100,000 shares of which have been designated as Company Series A Preferred Stock. As of January 29, 2014, there were issued and outstanding
(i) 28,566,029 shares of Company Common Stock, including an aggregate of 0 Restricted Shares, (ii) 75,000 shares of Company Series A Preferred Stock (which are convertible pursuant to the Certificate of Designations into a maximum of
5,805,921 shares of Company Common Stock (including, for the avoidance of doubt, the Make-Whole Amount (as defined in the Certificate of Designations), (iii) Company Stock Options to purchase an aggregate of 1,347,462 shares of Company Common
Stock, (iv) Company Stock Appreciation Rights with respect to an aggregate of 120,954 shares of Company Common Stock, (v) Company Restricted Stock Units relating to an aggregate of 502,817 shares of Company Common Stock, and
(vi) Company Performance Shares relating to an aggregate of 399,994 shares of Company Common Stock based on target achievement of performance goals. The weighted average exercise price of the Company Stock Options and Company Stock Appreciation
Rights that were issued and outstanding as of January 29, 2014 was $29.79. All outstanding shares of capital stock of the Company have been, and all shares that may be issued pursuant to any employee stock option or other compensation plan or
arrangement will be, when issued in accordance with the respective terms thereof, duly authorized and validly issued, fully paid and nonassessable and free of preemptive rights. Section 4.05 of the Company Disclosure Schedule contains a true
and complete list as of January 29, 2014 of all outstanding Restricted Shares, Company Stock Options, Company Stock Appreciation Rights, Company Restricted Stock Units and Company Performance Shares, including with respect to each such award
the holder, exercise price (if applicable) and number of shares of Company Common Stock subject thereto (at target, for Company Performance Shares). 

  
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 (b) There are no outstanding bonds, debentures, notes or other indebtedness of the Company having
the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which stockholders of the Company may vote. Except as set forth in Section 4.05(a) and for changes since January 29, 2014
resulting from (x) the exercise of Company Stock Options or Company Stock Appreciation Rights outstanding on such date or issued after such date, (y) the vesting and settlement of Company Restricted Stock Units, Company Performance Shares
and Restricted Shares outstanding on such date or issued after such date and (z) the issuance of shares of Company Common Stock pursuant to the ESPP in compliance with Section 7.03(e), there are no issued, reserved for issuance or
outstanding (i) shares of capital stock or other voting securities of, or other ownership interests in, the Company, (ii) securities of the Company convertible into or exchangeable for shares of capital stock or other voting securities of,
or other ownership interests in, the Company, (iii) warrants, calls, options or other rights to acquire from the Company, or other obligations of the Company to issue, any shares of capital stock or other voting securities of, or other
ownership interests in, or securities convertible into or exchangeable for capital stock or other voting securities of, or other ownership interests in, the Company or (iv) restricted shares, stock appreciation rights, performance units,
contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or voting securities of, or other
ownership interests in, the Company (the items in clauses (i) through (iv) being referred to collectively as the “Company Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to
repurchase, redeem or otherwise acquire any Company Securities. Neither the Company nor any of its Subsidiaries is a party to any agreement with respect to the voting of any Company Securities. 

(c) No Subsidiary or controlled Affiliate of the Company owns any Company Securities. 

Section 4.06. Subsidiaries. (a) Each Subsidiary of the Company is duly organized, validly existing and (where applicable) in
good standing under the laws of its jurisdiction of organization, has all organizational power and authority necessary to carry on its business as now conducted. Each such Subsidiary is duly qualified to do business as a foreign entity and is in
good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.
All Subsidiaries of the Company and their respective jurisdictions of organization are identified in the Company 10-K. 

  
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 (b) All of the outstanding capital stock or other voting securities of, or other ownership
interests in, each Subsidiary of the Company is owned by the Company, directly or indirectly, free and clear of any Lien (except for Permitted Liens) and free of any other limitation or restriction other than transfer restrictions under federal and
state securities laws. There are no issued, reserved for issuance or outstanding (i) securities of the Company or any of its Subsidiaries convertible into, or exchangeable for, shares of capital stock or other voting securities of, or other
ownership interests in, any Subsidiary of the Company, (ii) warrants, calls, options or other rights to acquire from the Company or any of its Subsidiaries, or other obligations of the Company or any of its Subsidiaries to issue, any capital
stock or other voting securities of, or other ownership interests in, or any securities convertible into, or exchangeable for, any capital stock or other voting securities of, or other ownership interests in, any Subsidiary of the Company or
(iii) restricted shares, stock appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the
value or price of, any capital stock or other voting securities of, or ownership interests in, any Subsidiary of the Company (the items in clauses (i) through (iii) being referred to collectively as the “Company Subsidiary
Securities”). There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any Company Subsidiary Securities. Except for the capital stock or other voting securities of, or other
ownership interests in, its Subsidiaries, the Company does not own, directly or indirectly, any capital stock or other voting securities of, or other ownership interests in, any Person. 

Section 4.07. SEC Filings and the Sarbanes-Oxley Act. (a) The Company and its Subsidiaries have filed with or furnished to
the SEC all reports, schedules, forms, statements, prospectuses, registration statements and other documents required to be filed or furnished since January 1, 2012 (collectively, together with any exhibits and schedules thereto and other
information incorporated therein, the “Company Filings”). 
 (b) As of its filing date (and as of the date of any
amendment), each Company Filing complied as to form in all material respects with the applicable requirements of the 1933 Act and the 1934 Act, as the case may be. 

(c) As of its filing date (or, if amended or superseded by a filing prior to the date hereof, on the date of such filing), each Company Filing
filed pursuant to the 1934 Act did not, as of the date it was filed, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading. 

  
 24 

 (d) Each Company Filing that is a registration statement, as amended or supplemented, if
applicable, filed pursuant to the 1933 Act, as of the date such registration statement or amendment or supplement became effective, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading. 
 (e) The Company has established and maintains disclosure controls and
procedures (as defined in Rule 13a-15 under the 1934 Act). Such disclosure controls and procedures are designed to ensure, and the Company has no reasonable basis to believe such controls and procedures are not effective to ensure, that all material
information relating to the Company required to be included in reports filed by the Company under the 1934 Act is accumulated and communicated to the Company’s management, including its principal executive officer and its principal financial
officer as appropriate to allow timely decisions regarding required disclosure. 
 (f) Since January 1, 2012, the Company has
established and maintains a system of internal controls over financial reporting (as defined in Rule 13a-15 under the 1934 Act) sufficient to provide reasonable assurance regarding the reliability of the Company’s financial reporting and the
preparation of Company financial statements for external purposes in accordance with GAAP. Since January 1, 2012, the Company’s principal executive officer and its principal financial officer have disclosed, based on its most recent
evaluation of internal controls over financial reporting prior to the date hereof, to the Company’s auditors and audit committee (i) any significant deficiencies and material weaknesses in the design or operation of internal controls over
financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information and (ii) any fraud, whether or not material, that involves management or other
employees who have a significant role in internal controls over financial reporting. 
 (g) Since January 1, 2012, there has been no
transaction, or series of similar transactions, agreements, arrangements or understandings, nor is there any proposed transaction as of the date of this Agreement, or series of similar transactions, agreements, arrangements or understandings to
which the Company or any of its Subsidiaries was or is to be a party, that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the 1933 Act. 

Section 4.08. Financial Statements. The audited consolidated financial statements and unaudited consolidated interim financial
statements of the Company included or incorporated by reference in the Company Filings fairly present in all material respects, in conformity with GAAP applied on a consistent basis (except as may be indicated in the notes thereto and, in the case
of unaudited 

  
 25 

 
quarterly financial statements, as permitted by Form 10-Q under the 1934 Act), the consolidated financial position of the Company and its Subsidiaries as of the dates thereof and their
consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments in the case of any unaudited interim financial statements). 

Section 4.09. Disclosure Documents. The proxy statement of the Company to be filed with the SEC in connection with the Merger (the
“Company Proxy Statement”) and any amendment or supplement thereto will, when filed, comply as to form in all material respects, with the applicable requirements of the 1934 Act. At the time the Company Proxy Statement and any
amendments or supplements thereto are first mailed to the stockholders of the Company and at the time such stockholders vote on approval and adoption of this Agreement, the Company Proxy Statement, as supplemented or amended, if applicable, will not
contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The
representations and warranties contained in this Section 4.09 will not apply to statements or omissions included or incorporated by reference in the Company Proxy Statement based upon information supplied by Parent, Merger Subsidiary or any of
their respective representatives or advisors specifically for use or incorporation by reference therein. 
 Section 4.10. Absence of
Certain Changes. (a) From the Company Balance Sheet Date until the date hereof, (i) the business of the Company and its Subsidiaries has been conducted in the ordinary course consistent with past practices and (ii) there has not
been any event, occurrence, development, change or state of circumstances or facts that has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. 

(b) From the Company Balance Sheet Date until the date hereof, there has not been any action taken by the Company or any of its Subsidiaries
that, if taken during the period from the date of this Agreement through the Effective Time without Parent’s consent, would constitute a breach of Section 6.01(a), (b), (c), (f), (g), (j), (l), (m) and (o). 

Section 4.11. No Undisclosed Material Liabilities. There are no liabilities or obligations of the Company or any of its
Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute or otherwise other than: (i) liabilities or obligations disclosed and provided for in the Company Balance Sheet or in the notes thereto; (ii) liabilities or
obligations incurred in the ordinary course of business consistent with past practices since the Company Balance Sheet Date; (iii) liabilities that were incurred under this Agreement or in connection with the transactions contemplated hereby;
and (iv) liabilities or obligations that would not 

  
 26 

 
reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. 

Section 4.12. Compliance with Applicable Laws. Except with respect to the matters specifically addressed in clause (d) below
(which are addressed exclusively in clause (d) below), matters relating to compliance with Health Care Laws (which are addressed exclusively in clauses (e) through (h) below), infringement or misappropriation of any Intellectual
Property Rights (which are addressed exclusively in Section 4.15), Tax compliance matters (which are addressed exclusively in Section 4.16 and Section 4.17), and environmental compliance matters (which are addressed exclusively in
Section 4.18(ii)): 
 (a) the Company and each of its Subsidiaries is and since January 1, 2012, has been in compliance with, and to
the knowledge of the Company is not under investigation with respect to and has not been threatened to be charged with or given notice of any violation of, any Applicable Law, except for failures to comply or violations that have not had and would
not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. There is no judgment, decree, injunction, rule or order of any arbitrator or Governmental Authority outstanding against the Company or any of
its Subsidiaries that has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect or that in any manner seeks to prevent, enjoin, alter or materially delay the Merger or any of the other
transactions contemplated hereby. 
 (b) Except as would not reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect, the Company and its Subsidiaries hold all governmental licenses, authorizations, permits, consents, approvals, variances, exemptions and orders necessary for the operation of the businesses of the Company and its
Subsidiaries as currently conducted (the “Company Permits”). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect: (i) the Company and its Subsidiaries are in
compliance with the terms of the Company Permits, and (ii) since January 1, 2012, there has occurred no violation of, default (with or without notice or lapse of time or both) under, or event to allow termination or cancellation of, with
or without notice or lapse of time or both, any such Company Permit. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Merger, in and of itself, will not cause the
revocation, cancellation, non-renewal, adverse modification or termination of any such Company Permit. 
 (c) Except as would not reasonably
be expected to have, individually or in the aggregate, a Company Material Adverse Effect, since January 1, 2012, none of the Company, any of its Subsidiaries or any of their respective directors,

  
 27 

 
officers or employees, or, to the Company’s knowledge, any agent or representative of the Company or any of its Subsidiaries, has, in the course of his, her or its actions for, or on behalf
of, any of them (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic
government official or employee; (iii) violated any provision of any Anti-Corruption Law; or (iv) directly or indirectly made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or
domestic government official or employee. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, since January 1, 2012, neither the Company nor any of its Subsidiaries has
received any communication that alleges that the Company or any of its Subsidiaries, or any of their respective Representatives, is, or may be, in violation of, or has, or may have, any liability under, any Anti-Corruption Law. Except as would not
reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries have instituted and maintain policies and procedures designed to promote and achieve compliance with such laws and
the matters referred to in this Section 4.12(c). 
 (d) Except as would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect, none of the Company, any of its Subsidiaries or any of their respective directors, officers or employees, or, to the Company’s knowledge, any agents or representatives of the Company or any of its
Subsidiaries, is, or is owned or controlled by a Person that is: (i) the subject of any sanctions administered by the U.S. Department of Treasury’s Office of Foreign Assets Control, the U.S. Department of State, the United Nations Security
Council, the European Union or any other relevant sanctions authority (collectively, “Sanctions”), or (ii) located, organized or resident in a country or territory that is the subject of Sanctions (currently, Cuba, Iran, North
Korea, Sudan and Syria). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, since January 1, 2012, (A) neither the Company nor any of its Subsidiaries has engaged in,
directly or indirectly, any dealings or transactions with any Person, or in any country or territory, that, at the time of the dealing or transaction, was the subject of Sanctions, and (B) the Company and each of its Subsidiaries has been in
compliance in all material respects with, and has not been penalized for or, to the Company’s knowledge, under investigation with respect to, and has not been threatened to be charged with or given notice of any violation of, any applicable
Sanctions or export controls laws. 
 (e) Except as would not reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect, the Company and its Subsidiaries are not in violation of, and since January 1, 2012 have not violated, 

  
 28 

 
any Health Care Laws which regulate their operations, activities, products or services or any assets owned or used by any of them. Except as would not reasonably be expected to have, individually
or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries hold all governmental licenses, authorizations, permits, consents, approvals, variances, exemptions and orders required by any Health Care Laws for the
operation of the businesses of the Company and its Subsidiaries as currently conducted (the “HC Company Permits”). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse
Effect: (i) the Company and its Subsidiaries are in compliance with the terms of the HC Company Permits, and (ii) since January 1, 2012, there has occurred no violation of, default (with or without notice or lapse of time or both)
under, or event to allow termination or cancellation of, with or without notice or lapse of time or both, any such HC Company Permit. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse
Effect, the Merger, in and of itself, will not cause the revocation, cancellation, non-renewal, adverse modification or termination of any such HC Company Permit. 

(f) None of the Company, any of its Subsidiaries, or their respective employees, officers, or directors, or, to the Company’s knowledge,
individuals with direct or indirect ownership interests of five (5) percent or more in the Company or its Subsidiaries, agents or contractors, have been, since January 1, 2012, or is currently debarred by the FDA under 21 U.S.C. §
335a, or suspended, excluded or debarred from contracting with the federal or any state government or from participation in any Federal Health Care Program nor, to the Company’s knowledge, has the Company, any Subsidiary of the Company or any
of their respective employees, officers, directors, individuals with direct or indirect ownership interests of five (5) percent or more in the Company or its Subsidiaries, or agents or contractors engaged in conduct which could result in a
suspension, debarment, exclusion or disqualification by any Governmental Authority. Except as described in Section 4.12(f) of the Company Disclosure Schedule, there are no proceedings pending or, to the Company’s knowledge, threatened that
could result in criminal liability or suspension, exclusion, debarment or disqualification by any Governmental Authority. 
 (g) Except as
would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect: 
 (i) since
January 1, 2012, the Company and each of its Subsidiaries has timely filed any and all material notifications, filings and reports utilized as the basis for or submitted in connection with a request for a Company Permit from any Governmental
Authority, including premarket notifications to the FDA, and any written contract or other document with respect to the purchase or reimbursement of items, 

  
 29 

 
products and/or services from the Company by third-party payors, including, but not limited to, Federal Health Care Programs and licensing agencies, insurers and carriers (collectively,
“Company Submissions”). To the Company’s knowledge, the Company Submissions were true, complete and correct in all material respects as of the date of submission and any necessary or required updates, changes, corrections or
modifications to such Company Submissions have been submitted to the applicable Governmental Authority; 
 (ii) neither the
FDA nor any other comparable Governmental Authority has withdrawn or suspended the approval or clearance of, requested or ordered the recall of, ordered the seizure of, or ordered or requested the discontinuation of advertising and promotional
materials of any of the products of the Company or any of its Subsidiaries; and 
 (iii) neither the Company nor any
Subsidiary of Company has, since January 1, 2012, received (A) any warning or untitled letter, report of inspection observations (including FDA Form 483s), establishment inspection report, notice of violation, clinical hold, or other
written documents or other communications from the FDA, any other Governmental Authority or any Institutional Review Board alleging material non-compliance by the Company or such Subsidiary with any Applicable Law or regulatory requirements
(including those of the FDA), (B) any written notice from FDA that FDA intends to invoke its policy with respect to Fraud, Untrue Statements of Material Facts, Bribery and Illegal Gratuities, 56 Fed. Reg. 46191 (September 10, 1991) or
(C) any written notice or communication from the FDA or any other Governmental Authority which enjoins production at any facility of the Company or any of its Subsidiaries. 

(h) To the knowledge of the Company, except as would not reasonably be expected to have, individually or in the aggregate, a Company Material
Adverse Effect, since January 1, 2012, and except as set forth on Section 4.12(h) of the Company Disclosure Schedule: (i) neither the Company nor any of its Subsidiaries has(A) received or been subject to any notice, citation,
suspension, revocation, warning, request of payment or refund, investigation, request for information or administrative proceeding or review by a Governmental Authority which alleges or asserts that the Company or any of its Subsidiaries has
violated any Health Care Laws or which requires or seeks any adjustment, modification or alteration in the Company’s or any of its Subsidiary’s operations, activities, products, services or financial condition that has not been resolved,
including but not limited to any qui tam lawsuits, or U.S. Department of Justice, OIG, State Attorney General or State Medicaid Agency investigations or audits or(B) been subject to a corporate integrity agreement, deferred prosecution agreement,

  
 30 

 
consent decree, settlement agreement or other similar agreements or orders mandating or prohibiting future or past activities and (ii) neither the Company nor any of its Subsidiaries has
settled, or agreed to settle, any actions brought by any Governmental Authority for a violation of any Health Care Laws. To the knowledge of the Company, there are no restrictions imposed by any Governmental Authority upon the business, activities,
products or services of the Company or any of its Subsidiaries which would restrict or prevent the Company or such Subsidiary from operating as it currently operates, except as would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect. 
 Section 4.13. Litigation. There is no action, suit, investigation or proceeding
pending against, or, to the knowledge of the Company, threatened against or affecting, the Company, any of its Subsidiaries, any present or former officer, director or employee of the Company or any of its Subsidiaries or any Person for whom the
Company or any of its Subsidiaries may be liable or any of their respective properties before (or, in the case of threatened actions, suits, investigations or proceedings, would be before) or by any Governmental Authority or arbitrator, that, if
determined or resolved adversely in accordance with the plaintiff’s demands, would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. 

Section 4.14. Properties. (a) Except as would not reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect, the Company and its Subsidiaries have good and marketable title to, or in the case of leased property and assets have valid leasehold interests in, all property and assets (whether real, personal, tangible or intangible)
reflected on the Company Balance Sheet or acquired after the Company Balance Sheet Date, except as have been disposed of since the Company Balance Sheet Date in the ordinary course of business consistent with past practice. 

(b) Section 4.14(b) of the Company Disclosure Schedule contains a true and complete list, as of the date hereof, of all real property
owned by the Company and its Subsidiaries (the “Owned Real Property”). 
 (c) Section 4.14(c) of the Company
Disclosure Schedule contains a true and complete list, as of the date hereof, or each material lease, sublease or license (each, a “Lease”) under which the Company or any of its Subsidiaries leases, subleases or licenses any real
property (the “Leased Real Property” and together with the Owned Real Property, the “Company Real Property”). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material
Adverse Effect, (i) each Lease is valid and in full force and effect and (ii) neither the Company nor any of its Subsidiaries, nor to the Company’s knowledge any other party to a Lease, has violated any provision of,

  
 31 

 
or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a default under the provisions of such Lease, and neither the Company nor any of its
Subsidiaries has received notice that it has breached, violated or defaulted under any Lease. 
 (d) Except as would not reasonably be
expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company Real Property and any plants, buildings, structures and equipment thereon owned or leased by the Company and its Subsidiaries have no defects, are in
good operating condition and repair and have been maintained consistent with standards generally followed in the industry (given due account to the age and length of use of same, ordinary wear and tear excepted), are adequate and suitable for their
present and intended uses and, to the Company’s knowledge, in the case of buildings (including the roofs thereof), are structurally sound. 

Section 4.15. Intellectual Property. (a) Section 4.15(a) of the Company Disclosure Schedule contains a true and complete
list of each of the issuances, registrations and applications for issuance or registration included in the Owned Intellectual Property Rights, specifying as to each such item, as applicable (i) the owner of such item, (ii) each
jurisdiction in which such item is issued or registered or in which any application for issuance or registration has been filed, (iii) the respective issuance, registration, or application number of such item and (iv) the date of
application and issuance or registration of such item. 
 (b) Except as would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect, (i) the Company or one of its Subsidiaries is the sole and exclusive owner of the Owned Intellectual Property Rights and holds all right, title and interest in and to all Owned Intellectual Property
Rights, in each case free and clear of any Lien (excluding Permitted Liens) and (ii) to the knowledge of the Company, the Company and its Subsidiaries own or have a valid and enforceable license to use all Intellectual Property Rights necessary
to, or used or held for use in, the conduct of the business of the Company and its Subsidiaries as currently conducted. 
 (c) Except as
would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) there exist no restrictions on the disclosure, use, license or transfer of the Owned Intellectual Property Rights, and
(ii) the consummation of the transactions contemplated by this Agreement will not result in (A) the imposition of a Lien on, or extinguish or impair the Company’s or its applicable Subsidiary’s rights in, any Owned Intellectual
Property Rights or (B) result in any breach of or any loss of any benefit or right under, constitute a default under, or give to any third party any right of termination, vesting, amendment, acceleration or cancellation under, any

  
 32 

 
Contract pursuant to which the Company or its applicable Subsidiary obtains any rights to any Licensed Intellectual Property Right. 

(d) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) to the
knowledge of the Company, neither the Company nor any of its Subsidiaries is infringing, inducing or contributing to the infringement of, misappropriating or otherwise violating any Intellectual Property Right of any Person, (ii) to the
knowledge of the Company, during the six (6) years immediately preceding the date of this Agreement, neither the Company nor any of its Subsidiaries has infringed, induced or contributed to the infringement of, misappropriated or otherwise
violated any such Third Party’s Intellectual Property Rights, and (iii) there is no claim, action, suit, investigation or proceeding pending against, or, to the knowledge of the Company, threatened during the six (6) years immediately
preceding the date of this Agreement against the Company or any of its Subsidiaries or any of their respective present or former officers, directors or employees (A) based upon, or challenging or seeking to deny or restrict, the rights of the
Company or any of its Subsidiaries in any of the Owned Intellectual Property Rights or Licensed Intellectual Property Rights, (B) alleging that any Owned Intellectual Property Right or Licensed Intellectual Property Right is invalid or
unenforceable, (C) alleging that the use of any of the Owned Intellectual Property Rights or Licensed Intellectual Property Rights or any services provided, processes used or products manufactured, used, imported or sold by the Company or any
of its Subsidiaries do or may conflict with, misappropriate, infringe or otherwise violate any Intellectual Property Right of any Person or (D) otherwise alleging that the Company or any of its Subsidiaries has infringed, misappropriated or
otherwise violated any Intellectual Property Right of any Person. 
 (e) Except as would not reasonably be expected to have, individually or
in the aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries have taken any and all actions reasonably necessary to maintain, enforce and protect the Owned Intellectual Property Rights and the Company’s or its
applicable Subsidiary’s interest in any Licensed Intellectual Property Rights, (ii) none of the Owned Intellectual Property Rights have been adjudged invalid or unenforceable in whole or part, (iii) all issued Patents, registered
Trademarks and registered Copyrights included in the Owned Intellectual Property Rights (“Registered IP”) are, to the knowledge of the Company, valid, enforceable, in full force and effect and subsisting in all material respects,
(iv) all registration, maintenance and renewal fees applicable to the Registered IP that are currently due have been paid and all documents and certificates related to such items have been filed with the relevant Governmental Authority or other
authorities in the applicable jurisdictions for the purposes of maintaining such items (excluding the abandonment or other allowance of the expiration or lapse of Registered IP in the 

  
 33 

 
ordinary course of business), and (v) effective written assignments constituting an unbroken, complete chain-of-title from each original owner or inventor to the Company or its applicable
Subsidiary have been obtained with respect to all material Owned Intellectual Property Rights, and as to Registered IP, have been duly recorded with the appropriate Governmental Authorities, and (vi) the Company’s and its
Subsidiaries’ prosecution of any and all Patents included in the Owned Intellectual Property Rights has been conducted in compliance with Applicable Law and the applicable rules of the U.S. Patent and Trademark Office. 

(f) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) in the
five (5) years immediately preceding the date of this Agreement, neither the Company nor any Company Subsidiary has sent a written notice to any Third Party alleging that such Third Party has infringed, misappropriated or otherwise violated any
Owned Intellectual Property Right, and (ii) the Company has taken reasonable steps in accordance with normal industry practice to maintain the confidentiality of all Intellectual Property Rights of the Company the value of which to the Company
is contingent upon maintaining the confidentiality thereof. 
 (g) Except as would not reasonably be expected to have, individually or in
the aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries have appropriate procedures in place designed to provide that all Intellectual Property Rights conceived or developed by employees performing product
development duties for the Company and its Subsidiaries, and by third parties performing research and development with respect to products for the Company or its Subsidiaries, have been assigned to the Company or its Subsidiary, as applicable,
(ii) to the extent that any Intellectual Property Right has been generated by any Third Party (including any current or former employee) engaged in research and development activities reasonably anticipated to generate material Intellectual
Property Rights, the Company or one of its Subsidiaries has a written agreement with such Third Party with respect thereto, which provides that the Company or its applicable Subsidiary either (A) has obtained ownership of or (B) has
obtained the rights necessary to exploit, sufficient for the conduct of its business as currently conducted, such Intellectual Property Right. 

(h) Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) the IT
Assets operate and perform in a manner that permits the Company and its Subsidiaries to conduct its and their business as currently conducted, and (ii) the Company and its Subsidiaries have taken commercially reasonable actions, consistent with
current industry standards, to protect the confidentiality, integrity and security of the IT Assets (and all information and transactions stored or contained therein or transmitted thereby) against any unauthorized use, access, interruption,
modification or corruption, including the implementation of commercially 

  
 34 

 
reasonable (A) data backup, (B) disaster avoidance and recovery procedures and (C) business continuity procedures. 

(i) Section 4.15(i) of the Company Disclosure Schedule contains a true and complete list of any and all Owned Intellectual Property
Rights that were created, developed or reduced to practice, or are being created, developed or reduced to practice, (i) pursuant to, or in connection with, any Contract between the Company or any of its Subsidiaries and any Governmental
Authority or Governmental Authority-affiliated entity, or university, college or other educational institution, or (ii) using any funding or facilities of any Governmental Authority or Governmental Authority-affiliated university, college or
other educational institution (collectively, “Government Funded IP”). Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries have
taken any and all actions necessary to obtain, secure, maintain, enforce and protect the Company’s or its applicable Subsidiary’s right, title and interest in, to and under all Government Funded IP, and the Company and its Subsidiaries
have complied with any and all any Intellectual Property Right disclosure and/or licensing obligations under any applicable contract referenced in clause (i) above. 

Section 4.16. Taxes. (a) All material Tax Returns required by Applicable Law to be filed with any Taxing Authority by, or on
behalf of, the Company or any of its Subsidiaries have been filed when due and all such material Tax Returns are, or shall be at the time of filing, true and complete in all material respects. 

(b) Subject to exceptions as would not be material, the Company and each of its Subsidiaries has paid (or has had paid on its behalf) or has
withheld and remitted to the appropriate Taxing Authority all Taxes due and payable. 
 (c) Neither the Company nor any of its Subsidiaries
has granted an extension or waiver of the limitation period for the assessment or collection of any material Tax that remains in effect. 

(d) The Company, and each Subsidiary, has complied in all material respects with the conditions stipulated in each Tax Grant, no submissions
made to any Taxing Authority in connection with obtaining any Tax Grant contained any material misstatement or omission and, to the knowledge of the Company, the transactions expressly contemplated by this Agreement will not adversely affect the
status of any existing Tax Grant. 
 (e) There is no claim, audit, action, suit, proceeding or investigation now pending or, to the
Company’s knowledge, threatened against or with respect 

  
 35 

 
to the Company or its Subsidiaries in respect of any material Tax or material Tax asset. 

(f) There are no material Liens for Taxes (other than statutory liens for taxes not yet due and payable or being contested in good faith) upon
any of the assets of the Company or any of its Subsidiaries. 
 (g) (i) Neither the Company nor any of its Subsidiaries is a party to or is
bound by any Tax Sharing Agreement (other than such an agreement or arrangement between or among (A) the Company (or its Subsidiaries) and Parent (or its Subsidiaries) or (B) the Company and its Subsidiaries exclusively), (ii) neither
the Company nor any of its Subsidiaries has liability for the payment of any amount as a result of being party to any Tax Sharing Agreement (other than such agreement or arrangement between or among (X) the Company (or its Subsidiaries) and
Parent (or its Subsidiaries) or (Y) the Company and its Subsidiaries exclusively); and (iii) neither the Company nor any of its Subsidiaries has been a member of an affiliated group filing a consolidated federal income Tax Return (other
than a group the common parent of which was the Company or Parent). 
 (h) Neither the Company nor any of its Subsidiaries has been a party
to any “listed transaction” within the meaning of Section 6011 of the Code (including the Treasury Regulations promulgated thereunder). 

(i) None of the Subsidiaries of the Company owns any Company Common Stock. 

(j) During the two-year period ending on the date hereof, neither the Company nor any of its Subsidiaries was a distributing corporation or a
controlled corporation in a transaction intended to be governed by Section 355 of the Code. 
 (k) No claim has been made in writing in
the last three (3) years by any Taxing Authority in a jurisdiction where the Company or a Subsidiary does not file Tax Returns that the Company or a Subsidiary is or may be subject to taxation by, or required to file any Tax Return in, that
jurisdiction. 
 Section 4.17. Employees and Employee Benefit Plans. (a) Section 4.17(a) of the Company Disclosure
Schedule contains a correct and complete list identifying each material Employee Plan and specifies whether such plan is a US Plan or an International Plan. For each material Employee Plan, the Company has provided to Parent a copy of such plan (or
a description, if such plan is not written) and all amendments thereto and, as applicable (i) all trust agreements, insurance contracts or other funding arrangements and amendments thereto, (ii) the current prospectus or summary plan
description and all summaries of material modifications, (iii) the most recent favorable determination or opinion letter from 

  
 36 

 
the IRS, (iv) the most recently filed annual return/report (Form 5500) and accompanying schedules and attachments thereto, (v) the most recently prepared actuarial report and financial
statements and (vi) if such plan is an International Plan, documents that are substantially comparable (taking into account differences in Applicable Law and practices) to the documents required to be provided in clauses (i) through (v).
The Company’s failure to provide to Parent any of the documents referenced in the preceding sentence as the date hereof would not, individually or in the aggregate, result in a Company Material Adverse Effect, and the Company will provide such
documents to Parent not later than ten Business Days after the date hereof. 
 (b) As of the date hereof, no Key Employee has provided
written notice to any executive officer of the Company that he or she presently intends to resign or retire as a result of the transactions contemplated by this Agreement or otherwise within one year after the Effective Time. 

(c) With respect to any Employee Plan covered by Subtitle B, Part 4 of Title I of ERISA or Section 4975 of the Code, no non-exempt
prohibited transaction has occurred that has caused or would reasonably be expected to cause the Company or any of its Subsidiaries to incur any material liability under ERISA or the Code. Neither the Company nor any of its ERISA Affiliates (nor any
predecessor of any such entity) sponsors, maintains, administers or contributes to (or has any obligation to contribute to), or has in the past six years sponsored, maintained, administered or contributed to (or had any obligation to contribute to),
or has or is reasonably expected to have any direct or indirect liability with respect to, any plan that is (i) subject to Title IV of ERISA or (ii) a “multiemployer plan” (as defined in Section 3(37) of ERISA). 

(d) Each Employee Plan, and any award thereunder, that is or forms part of a “nonqualified deferred compensation plan” within the
meaning of Section 409A or 457A of the Code has been timely amended (if applicable) to comply and has been operated in material compliance with, and the Company and its Subsidiaries have materially complied in practice and operation with, all
applicable requirements of Section 409A and 457A of the Code, and no amounts currently deferred or to be deferred under any such plan would be not determinable when otherwise includible in income under Section 457A of the Code. Neither the
Company nor any of its Subsidiaries has any obligation to gross-up, indemnify or otherwise reimburse any current or former Service Provider for any Tax incurred by such Service Provider, including under Section 409A, 457A or 4999 of the Code.

 (e) Each Employee Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination or
opinion letter, or has pending or has time remaining in which to file, an application for such 

  
 37 

 
determination from the IRS, and no circumstances exist that would reasonably be expected to result in any such determination or opinion letter being revoked or not being reissued or a penalty
under the IRS Closing Agreement Program if discovered during an IRS audit or investigation. Each trust created under any such Employee Plan is exempt from Tax under Section 501(a) of the Code and has been so exempt since its creation. Each
Employee Plan has been maintained in compliance with its terms and with the requirements of Applicable Law, including ERISA and the Code, except for failures to comply or violations that have not had and would not reasonably be expected have,
individually or in the aggregate, a Company Material Adverse Effect. No events have occurred with respect to any Employee Plan that could result in payment or assessment by or against the Company of any material excise taxes under ERISA or the Code.

 (f) Except as would not, individually or in the aggregate, reasonably be expected to result in a Company Material Adverse Effect, all
contributions, premiums and payments that are due have been made for each Employee Plan within the time periods prescribed by the terms of such plan and Applicable Law, and all contributions, premiums and payments for any period ending at or prior
to the Effective Time that are not due are properly accrued to the extent required to be accrued under applicable accounting principles. There has been no amendment to, written interpretation of or announcement (whether or not written) by the
Company or any of its Subsidiaries relating to, or change in employee participation or coverage under, any Employee Plan that would materially increase the expense of maintaining such plan above the level of expense incurred in respect thereof for
the most recently completed fiscal year. 
 (g) Neither the execution of this Agreement nor the consummation of the transactions
contemplated by this Agreement (either alone or together with any other event) will (i) entitle any current or former Service Provider to any material payment or benefit, including any bonus, retention, severance, retirement or job security
payment or benefit, (ii) materially enhance any benefits or accelerate the time of payment or vesting or trigger any payment of funding (through a grantor trust or otherwise) of compensation or benefits under, or materially increase the amount
payable or trigger any other obligation under, any Employee Plan or otherwise, or (iii) limit or restrict the right of the Company or any of its Subsidiaries or, after Closing, Parent, to merge, amend or terminate any Employee Plan. There is no
contract, plan or arrangement (written or otherwise) covering any current or former Service Provider that, individually or collectively, could give rise to the payment of any amount that would not be deductible due to the application of
Section 280G or 162(m) of the Code. 
 (h) Neither the Company nor any of its Subsidiaries has any current or projected liability for,
and no Employee Plan provides or promises, any post-employment or post-retirement medical, dental, disability, hospitalization or life 

  
 38 

 
benefits (whether insured or self-insured) to any current or former Service Provider (other than coverage mandated by Applicable Law, including the Consolidated Omnibus Budget Reconciliation Act
of 1985 (or COBRA)). 
 (i) There is no action, suit, investigation, audit, proceeding or claim (other than routine claims for benefits)
pending against or involving, or, to the Company’s knowledge, threatened against or involving any Employee Plan before any arbitrator or any Governmental Authority, including the IRS or the Department of Labor that, if determined or resolved
adversely in accordance with the plaintiff’s demands, would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company and its Subsidiaries are, and have been since January 1, 2011, in
compliance with all Applicable Laws with respect to labor relations, employment and employment practices, including those relating to labor management relations, wages, hours, overtime, employee classification, discrimination, sexual harassment,
civil rights, affirmative action, work authorization, immigration, safety and health, information privacy and security, workers compensation, continuation coverage under group health plans, wage payment and the payment and withholding of Taxes,
except for failures to comply or violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. 

(j) Each International Plan (i) has been maintained in compliance with its terms and Applicable Law, except for failures to comply or
violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (ii) if intended to qualify for special tax treatment, meets in all material respects all the
requirements for such treatment, and (iii) if required, to any extent, to be funded, book-reserved or secured by an insurance policy, is fully funded, book-reserved or secured by an insurance policy, as applicable, based on reasonable actuarial
assumptions in accordance with applicable accounting principles. To the Company’s knowledge as of the date of this Agreement, the consent or consultation of, or the rendering of formal advice by, any labor or trade union, works council or other
employee representative body is not required for the Company to consummate any of the transactions contemplated hereby. 
 (k) Neither the
Company nor any of its Subsidiaries is or has been party to or subject to, or is currently negotiating in connection with entering into, any Collective Bargaining Agreement. There has not been any organizational campaign, petition or other
unionization activity seeking recognition of a collective bargaining unit relating to any Service Provider. There are currently no, and since January 1, 2011 there have not been any, labor strikes, slowdowns, stoppages, picketings,
interruptions of work or lockouts pending or, to the Company’s knowledge, threatened against or affecting the Company or any of its 

  
 39 

 
Subsidiaries. There are no material unfair labor practice complaints pending or, to the Company’s knowledge, threatened against the Company or any of its Subsidiaries before the National
Labor Relations Board or any other Governmental Authority or any current union representation questions involving Service Providers. 
 (l)
The Company and each of its Subsidiaries is, and has been since January 1, 2011, in material compliance with WARN and has no material liabilities or other obligations thereunder. Neither the Company nor any of its Subsidiaries has taken any
action that would reasonably be expected to cause Parent or any of its Affiliates to have any material liability or other obligation following the Effective Time under WARN. 

Section 4.18. Environmental Matters. Except as would not reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect: (i) since January 1, 2012, the Company has not received any written notice, demand, request for information, citation, summons or complaint from a Governmental Authority alleging that the Company is in
violation of any Environmental Laws, and no order is outstanding or otherwise in effect, no penalty has been assessed and no action, suit, investigation or proceeding is pending or, to the knowledge of the Company, threatened with respect to the
Company or any of its Subsidiaries (or, to the knowledge of the Company, any of their respective predecessors) that relates to or arises out of any Environmental Law, Environmental Permit or Hazardous Substance; (ii) the Company and its
Subsidiaries (and, to the knowledge of the Company, their respective predecessors) are and, since January 1, 2012, have been in compliance with all Environmental Laws and Environmental Permits; (iii), to the knowledge of the Company, since,
January 1, 2012, no Hazardous Substance has been discharged, disposed of, dumped, injected, pumped, deposited, spilled, leaked, emitted or released at, on, under, to or from (x) any location by or on behalf of, (y) any property or
facility now or previously owned, leased or operated by, or (z) any property or facility to which any Hazardous Substance has been transported for disposal or treatment by or on behalf of, the Company or any of its Subsidiaries (or, to the
knowledge of the Company, any of their respective predecessors). 
 Section 4.19. Material Contracts. (a) Except as
disclosed in Section 4.19(a) of the Company Disclosure Schedule, neither the Company nor any of its Subsidiaries is a party to or bound by any of the following Contracts as of the date hereof: 

(i) any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC); 

  
 40 

 (ii) any partnership, joint venture, strategic alliance, collaboration,
co-promotion, research and development project or other similar Contract (but excluding, for the avoidance of doubt, any distribution, agency or clinical agreements entered into in the ordinary course of business); 

(iii) any Contract (but excluding any distribution or agency agreements containing the Company’s standard terms and
conditions and entered into in the ordinary course of business) that limits in any material respect the freedom of the Company or any of its Affiliates to compete in any line of business, therapeutic area or geographic region, or with any Person, or
otherwise materially restricts the research, development, manufacture, marketing, distribution or sale of any product or service by the Company or any of its Affiliates; 

(iv) any Contract (but excluding any distribution or agency agreements containing the Company’s standard terms and
conditions and entered into in the ordinary course of business) that contains exclusivity or “most favored nation” provisions, or any Contract that grants any right of first refusal or right of first offer to any Person relating to any
Product or Product candidate; 
 (v) any Contract (but excluding any distribution or agency agreements containing the
Company’s standard terms and conditions and entered into in the ordinary course of business) that requires the Company or any of its Subsidiaries to (A) purchase or sell a minimum quantity of goods relating to any product or product
candidate and that involves expenditures or receipts in excess of $1,000,000 in any calendar year remaining in its term, or (B) purchase or sell goods relating to any product or product candidate exclusively, in each case from or to any Person;

 (vi) any employment Contract applicable to any Key Employee which the Company has or could be reasonably expected to have
any material Liability; 
 (vii) any Contract relating to indebtedness for borrowed money or any financial guarantee (whether
incurred, assumed, guaranteed or secured by any asset), other than Contracts solely among the Company and its wholly owned Subsidiaries; 

(viii) any Contract relating to any loan or other extension of credit made by the Company or any of its Subsidiaries, other
than (A) Contracts solely among the Company and its wholly owned Subsidiaries 

  
 41 

 
and (B) accounts receivable in the ordinary course of business of the Company and its Subsidiaries consistent with past practice; 

(ix) any Contract relating to any swap, forward, futures, warrant, option or other derivative transaction; 

(x) any Contract (but excluding any distribution or agency agreements containing the Company’s standard terms and
conditions and entered into in the ordinary course of business) that (A) involves future expenditures or receipts by the Company or any of its Subsidiaries of more than $1,000,000 in any calendar year remaining in its term and (B) cannot
be terminated by the Company or the applicable Subsidiary(ies) on less than 90 days’ notice without material payment or penalty; 

(xi) any Contract pursuant to which the Company or any of its Subsidiaries has continuing obligations or interests involving
(A) “milestone” or other contingent payments, including upon the achievement of regulatory or commercial milestones, which “milestone” or other contingent payments could exceed $1,000,000 in the aggregate, or
(B) payment of royalties or other amounts calculated based upon any revenues or income of the Company or any of its Subsidiaries which royalties or other amounts are reasonably expected to exceed $1,000,000 in any calendar year remaining in its
term, in each case that cannot be terminated by the Company or its Subsidiaries without penalty without more than 90 days’ notice without material payment or penalty; 

(xii) any Contract relating to the acquisition or disposition of any business for aggregate maximum consideration (including
“earn-outs”) in excess of $1,000,000 (whether by merger, sale of stock, sale of assets or otherwise) pursuant to which the Company or any of its Subsidiaries has material continuing obligations, including “earn-outs” and
indemnities; 
 (xiii) any Contract not described in any other subsection of this Section 4.19 that relates to the
research, development, distribution, marketing, supply, license, collaboration, co-promotion or manufacturing of any material product, which, if terminated or not renewed, would reasonably be expected to have a Company Material Adverse Effect; 

(xiv) any Contract with any sole-source supplier of material tangible products or services relating to any material product of
the Company or its Subsidiaries; 
 (xv) any Contract between the Company or any of its Subsidiaries, on the one hand, and
any officer, director or Affiliate (other 

  
 42 

 
than a wholly owned Subsidiary) of the Company or any of its Subsidiaries or any of their respective “associates” or “immediate family” members (as such terms are defined in
Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any of its Subsidiaries has an obligation to indemnify such officer, director, Affiliate, associate or immediate family
member, except for any Contract involving employment, change in control, indemnification, stock option or similar Contracts entered into in the ordinary course of business; 

(xvi) any agreement with a Governmental Authority that provides for payments of $1,000,000 in any calendar year remaining in
its term; 
 (xvii) any agreement with any surgeon, physician or other health care professional that that provides for
$250,000 in any calendar year remaining in its term; or 
 (xviii) any stockholders, investors rights, registration rights or
similar agreement or arrangement. 
 (b) The Company has made available to Parent a true and complete copy of each agreement, contract,
plan, arrangement or commitment required to be disclosed pursuant to Section 4.19 (each, a “Material Contract”). Except for breaches, violations or defaults which would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect, (i) each of the Material Contracts is in full force and effect, and is a valid and binding Contract of the Company or its Subsidiaries, as applicable, and, to the Company’s knowledge, of each
other party thereto, enforceable against the Company or such Subsidiary, as applicable, and, to the Company’s knowledge, each other party thereto, in accordance with its terms, and (ii) neither the Company nor any of its Subsidiaries, nor
to the Company’s knowledge any other party to a Material Contract, has violated any provision of, or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a default under the provisions of, such
Material Contract, and neither the Company nor any of its Subsidiaries has received notice that it has breached, violated or defaulted under any Material Contract. 

Section 4.20. Insurance. Except as had not had and would not reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect, the Company and its Subsidiaries maintain reasonable insurance for their business. 

  
 43 

 Section 4.21. Finders’ Fees. Except for Piper Jaffray & Co., a copy of
whose engagement agreement has been provided to Parent prior to the date hereof, there is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of the Company or any of its
Subsidiaries who might be entitled to any fee or commission from the Company or any of its Affiliates in connection with the transactions contemplated by this Agreement. 

Section 4.22. Opinion of Financial Advisor. The Company has received the opinion of Piper Jaffray & Co., financial
advisor to the Company, to the effect that, as of the date of this Agreement, the Merger Consideration is fair to the Company’s stockholders from a financial point of view. A written copy of such opinion will be delivered promptly after the
date hereof to Parent for informational purposes only. 
 Section 4.23. Antitakeover Statutes. The Company has no “rights
plan,” rights agreement,” or “poison pill” in effect. The Company has taken all action necessary to exempt the Merger, this Agreement, the Voting Agreements and the transactions contemplated hereby and thereby from
Section 203 of Delaware Law, and, accordingly, neither such Section nor any other antitakeover or similar statute or regulation applies to any such transactions. No other “control share acquisition,” “fair price,”
“moratorium” or other antitakeover laws enacted under U.S. state or federal laws apply to this Agreement, the Voting Agreements or any of the transactions contemplated hereby and thereby. 

ARTICLE 5 

REPRESENTATIONS AND WARRANTIES OF PARENT 

Subject to Section 11.05, except as set forth in the Parent Disclosure Schedule, Parent represents and warrants to the Company that: 

Section 5.01. Corporate Existence and Power. Each of Parent and Merger Subsidiary is a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of incorporation and has all corporate powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except
for those licenses, authorizations, permits, consents and approvals the absence of which would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect. Each of Parent and Merger Subsidiary is duly
qualified to do business as a foreign corporation and is in good standing in each jurisdiction where such qualification is necessary in connection with the transactions contemplated by this Agreement, except for those jurisdictions where failure to
be so qualified or in good standing would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect. Since 

  
 44 

 
the date of its incorporation, Merger Subsidiary has not engaged in any activities other than in connection with or as contemplated by this Agreement. Parent has heretofore made available to the
Company true and complete copies of the certificate of incorporation and bylaws of Parent and Merger Subsidiary. 
 Section 5.02.
Corporate Authorization. The execution, delivery and performance by Parent and Merger Subsidiary of this Agreement and the consummation by Parent and Merger Subsidiary of the transactions contemplated hereby are within the corporate powers of
Parent and Merger Subsidiary and have been duly authorized by all necessary corporate action. This Agreement has been duly executed and delivered by Parent and Merger Subsidiary and constitutes a valid and binding agreement of each of Parent and
Merger Subsidiary enforceable against Parent and Merger Subsidiary in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws affecting creditors’ rights generally
and general principles of equity). This Agreement has been duly adopted immediately following its execution by Parent as the sole stockholder of Merger Subsidiary in accordance with Delaware Law. 

Section 5.03. Governmental Authorization. The execution, delivery and performance by Parent and Merger Subsidiary of this
Agreement and the consummation by Parent and Merger Subsidiary of the transactions contemplated hereby require no action by or in respect of, or filing with, any Governmental Authority, other than (i) the filing of a certificate of merger with
respect to the Merger with the Delaware Secretary of State and appropriate documents with the relevant authorities of other states in which Parent is qualified to do business, (ii) compliance with any applicable requirements of the HSR Act and
the Antitrust Laws applicable to the Merger in the jurisdictions set forth in Section 4.03 of the Company Disclosure Schedule, (iii) compliance with any applicable requirements of the 1934 Act and any other applicable U.S. state or federal
securities laws, (iv) compliance with the requirements of NASDAQ and the UK Financial Conduct Authority Listing Rules and (v) any actions or filings the absence of which would not reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect. 
 Section 5.04. Non-contravention. The execution, delivery and performance by
Parent and Merger Subsidiary of this Agreement and the consummation by Parent and Merger Subsidiary of the transactions contemplated hereby do not and will not (i) contravene, conflict with, or result in any violation or breach of any provision
of the certificate of incorporation or bylaws of Parent or Merger Subsidiary, (ii) assuming compliance with the matters referred to in Section 5.03, contravene, conflict with or result in a violation or breach of any provision of any
Applicable Law, (iii) assuming compliance with the matters referred to in Section 5.03, require any consent or other action by any Person 

  
 45 

 
under, constitute a default, or an event that, with or without notice or lapse of time or both, would constitute a default, under, or cause or permit the termination, cancellation, acceleration
or other change of any right or obligation or the loss of any benefit to which Parent or any of its Subsidiaries is entitled under any provision of any Contract binding upon Parent or any of its Subsidiaries or (iv) result in the creation or
imposition of any Lien on any asset of Parent or any of its Subsidiaries, with only such exceptions, in the case of each of clauses (ii) through (iv), as would not reasonably be expected to have, individually or in the aggregate, a Parent
Material Adverse Effect. 
 Section 5.05. Disclosure Documents. The information supplied in writing by Parent for inclusion in
the Company Proxy Statement will not, at the time the Company Proxy Statement and any amendments or supplements thereto is first mailed to the stockholders of the Company and at the time of the Company Stockholder Approval, contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The representations and
warranties in this Section 5.05 will not apply to statements or omissions included or incorporated by reference in the Company Proxy Statement based upon information supplied by the Company or any of its representatives or advisors specifically
for use or incorporation by reference therein. 
 Section 5.06. Finders’ Fees. Except for Centerview Partners LLC and J.P.
Morgan Securities LLC, whose fees will be paid by Parent, there is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of Parent who might be entitled to any fee or commission in
connection with the transactions contemplated by this Agreement. 
 Section 5.07. Financing. Parent has, or will have prior to
and at the Closing, sufficient cash, available lines of credit or other sources of immediately available funds to enable it to comply with its obligations under this Agreement, to consummate the Merger and the other transactions contemplated hereby,
to refinance any indebtedness required to be refinanced in connection therewith and to pay any related fees and expenses. Parent understands and acknowledges that under the terms of this Agreement, Parent’s and Merger Subsidiary’s
obligation to consummate the Merger is not in any way contingent upon or otherwise subject to Parent’s or Merger Subsidiary’s consummation of any financing arrangements, Parent’s or Merger Subsidiary’s obtaining of any financing
or the availability, grant, provision or extension of any financing to Parent or Merger Subsidiary. 
 Section 5.08. No Interested
Stockholder. As of the time the Company Board Recommendation was adopted by the Board of Directors, none of Parent, Merger Subsidiary or any of their “affiliates” and “associates” were, or have been

  
 46 

 
within the three years preceding such date, an “interested stockholder” of the Company, as those terms are defined in Section 203 of Delaware Law. Neither Parent nor any of its
Subsidiaries owns (beneficially or otherwise) any Company Securities or Company Subsidiary Securities or any options, warrants or other rights to acquire any Company Securities or Company Subsidiary Securities (or any other economic interest through
derivative securities or otherwise in the Company or any of its Subsidiaries). 
 Section 5.09. Ownership of Merger Subsidiary; No
Prior Activities. Parent owns one hundred percent (100%) of the issued and outstanding capital stock of Merger Subsidiary. Except for obligations or liabilities incurred in connection with its formation and the transactions contemplated by
this Agreement, Merger Subsidiary has not and will not, prior to the Effective Time, have incurred, directly or indirectly, through any Subsidiary or Affiliate or otherwise, any obligations or liabilities or engaged in any business activities of any
type or kind whatsoever or entered into any agreements or arrangements with any Person. 
 Section 5.10. Litigation. As of the
date of this Agreement, there is no action, suit, investigation or proceeding pending against, or, to the knowledge of Parent or Merger Subsidiary, threatened against or affecting, the Parent, any of its Subsidiaries, any present or former officer,
director or employee of Parent or any of its Subsidiaries or any Person for whom Parent or any of its Subsidiaries may be liable or any of their respective properties before (or, in the case of threatened actions, suits, investigations or
proceedings, would be before) or by any Governmental Authority or arbitrator, that, if determined or resolved adversely in accordance with the plaintiff’s demands, would reasonably be expected to have, individually or in the aggregate, a Parent
Material Adverse Effect. 
 Section 5.11. Management Agreements. As of the date hereof, other than this Agreement and the Voting
Agreements, there are no Contracts, undertakings, commitments, or obligations or understandings between Parent or Merger Subsidiary or any of their Affiliates, on the one hand, and any member of the Company’s management or the Board of
Directors or any of the Affiliates of the Company, on the other hand, relating to the transactions contemplated by this Agreement or the operations of the Company after the Effective Time. 

Section 5.12. Disclaimer of Other Representations and Warranties. Parent and Merger Subsidiary acknowledge that they their
Representatives have received access to such books and records, facilities, equipment, Contracts, information, data and other assets of the Company and its Subsidiaries which they and their Representatives have requested to review, and have had full
opportunity to meet with the management of the Company and its Subsidiaries and to discuss the business and assets of the Company. Parent and Merger Subsidiary each 

  
 47 

 
acknowledges and agrees that, except for the representations and warranties expressly set forth in Article 4 of this Agreement neither the Company nor any of its Subsidiary, Representative of the
Company or Affiliate of the Company or any of the Company’s Subsidiaries makes, or has made, any representation or warranty relating to the Company or any of its Subsidiaries or the business of the Company and its Subsidiaries in connection
with this Agreement, the Merger or the other transactions contemplated hereby, and Parent and Merger Subsidiary are not relying on any representation or warranty except for those expressly set forth in Article 4 of this Agreement. 

ARTICLE 6 

COVENANTS OF THE COMPANY 

The Company agrees that: 

Section 6.01. Conduct of the Company. From the date hereof until the earlier of the termination of this Agreement and the
Effective Time, except as expressly permitted or contemplated by this Agreement or set forth in Section 6.01 of the Company Disclosure Schedule, as required by applicable Law or as consented to in writing by Parent (such consent not to be
unreasonably withheld, conditioned or delayed), the Company shall, and shall cause each of its Subsidiaries to, conduct its business in the ordinary course consistent with past practice in all material respects, and use its reasonable best efforts
to (i) preserve intact its present business organization, (ii) maintain in effect all material foreign, federal, state and local licenses, permits, consents, franchises, approvals and authorizations, (iii) keep available the services
of its directors, officers and key employees and (iv) maintain satisfactory relationships with its key customers, lenders, suppliers, licensors, licensees, distributors and others having material business relationships with it. Without limiting
the generality of the foregoing, from the date hereof until the earlier of the termination of this Agreement and the Effective Time, except (i) as expressly permitted or contemplated by this Agreement or set forth in Section 6.01 of the
Company Disclosure Schedule, (ii) as required by applicable Law, or (iii) as consented to in writing by Parent (such consent not to be unreasonably withheld, conditioned or delayed), the Company shall not, nor shall it permit any of its
Subsidiaries to: 
 (a) amend its certificate of incorporation, bylaws or other similar organizational documents (whether by merger,
consolidation or otherwise); 
 (b) adopt a plan of or effect a complete or partial liquidation, dissolution, merger, consolidation,
restructuring, conversion, recapitalization or other reorganization (other than with respect to dormant Subsidiaries); 

  
 48 

 (c) (i) split, combine or reclassify any Company Securities or Company Subsidiary Securities,
(ii) declare, set aside or pay any dividend or other distribution (whether in cash, stock or property or any combination thereof) in respect of any Company Securities or Company Subsidiary Securities, or engage in any intercompany transactions
between or among the Company and its Subsidiaries, in each case other than any dividends or other intercompany transactions solely between or among the Company and its wholly owned Subsidiaries, or (iii) redeem, repurchase or otherwise acquire
or offer to redeem, repurchase, or otherwise acquire any Company Securities or Company Subsidiary Securities; except (A) pursuant to the exercise of Company Stock Options or Company Stock Appreciation Rights or the settlement of Company
Restricted Stock Units or Company Performance Shares, in each case that are outstanding on the date of this Agreement and as required pursuant to the terms of the Equity Plans governing such awards as in effect on the date of this Agreement, or
(B) conversion of the Series A Preferred Stock in accordance with the terms of the Company Certificate of Designation or payment of dividends with respect to or redemption of the Series A Preferred Stock as required by the terms of the Company
Certificate of Designation; 
 (d) (i) issue, deliver or sell, or authorize the issuance, delivery or sale of, any Company Securities or
Company Subsidiary Securities, other than the issuance of (A) any shares of Company Common Stock upon the exercise of Company Stock Options or Company Stock Appreciation Rights or the settlement of Company Restricted Stock Units, Company
Performance Shares or Restricted Shares that in each case are outstanding on the date of this Agreement, and as required pursuant to the terms of the Equity Plans governing such awards as in effect on the date of this Agreement, (B) any shares
of Company Common Stock pursuant to the ESPP in compliance with Section 7.03(e), (C) any Company Subsidiary Securities to the Company or any other wholly owned Subsidiary of the Company and (D) upon conversion of the Series A
Preferred Stock in accordance with the terms of the Company Certificate of Designation or payment of dividends with respect to or redemption of the Series A Preferred Stock as required by the terms of the Company Certificate of Designation or
(ii) amend any term of any Company Security or any Company Subsidiary Security (in each case, whether by merger, consolidation or otherwise); 

(e) incur any capital expenditures or any obligations or liabilities in respect thereof, except for (i) those contemplated by the capital
expenditure budgets for the projects set forth on Section 6.01(e) of the Company Disclosure Schedule and (ii) any unbudgeted capital expenditures not to exceed $2,000,000 individually or $6,000,000 in the aggregate; 

(f) acquire (by merger, consolidation, acquisition of stock or assets or otherwise), directly or indirectly, any assets, securities,
properties, interests or 

  
 49 

 
businesses, other than (i) raw materials, supplies and goods acquired in the ordinary course of business of the Company and its Subsidiaries in a manner that is consistent with past practice
and (ii) acquisitions with a purchase price (including assumed indebtedness and the present value of all contingent future payments) that does not exceed $5,000,000 in the aggregate; 

(g) sell, lease, license or otherwise transfer or dispose of, abandon or permit to lapse, or create or incur any Lien on, any of the
Company’s or its Subsidiaries’ assets, securities, properties, interests or businesses, other than (i) sales, leases or licenses of products, inventory or equipment in the ordinary course of business consistent with past practice and
(ii) sales, leases or licenses of assets, securities, properties, interests or businesses with a sale price (including any related assumed indebtedness and the present value of any contingent future payments) that does not exceed $5,000,000 in
the aggregate; 
 (h) sell, lease, license or otherwise transfer or dispose of, abandon or permit to lapse, fail to take any action
necessary to maintain, protect, or create or incur any Lien (other than Permitted Liens) on, any material Owned Intellectual Property Right or material Licensed Intellectual Property Right (other than non-exclusive licenses granted in the ordinary
course of business); 
 (i) other than in connection with actions permitted by Section 6.01(e) or Section 6.01(f), make any loans,
advances or capital contributions to, or investments in, any other Person, other than in the ordinary course of business consistent with past practice or to wholly owned Subsidiaries of the Company; 

(j) create, incur, assume, or otherwise become liable with respect to any indebtedness for borrowed money or guarantees thereof (whether
evidenced by a note or other instrument, pursuant to an issuance of debt securities, financing lease or otherwise) other than (i) indebtedness in amounts not to exceed $5,000,000 in the aggregate, (ii) indebtedness solely between the
Company and a wholly owned Subsidiary of the Company or between wholly owned Subsidiaries of the Company, (iii) guarantees by the Company of any indebtedness of any wholly-owned Subsidiary that is otherwise permitted to be incurred under this
Section 6.01(j) or (iv) guarantees by any Subsidiary of the Company of any indebtedness of the Company; 
 (k) amend or modify in
any material respect, or terminate, cancel, renew or extend, any Material Contract (other than distribution agreements that incorporate the Company’s standard terms and conditions and agency agreements) or Lease, or enter into any contract that
would have constituted such a Material Contract or Lease had it been in effect as of the date hereof (including by amendment of any contract that is not a Material Contract or Lease so that such contract becomes a contract that would have been a
Material Contract or 

  
 50 

 
Lease had it been in effect as of the date hereof), or waive, release, assign or fail to exercise or pursue any material right, claim or benefit of the Company or any of its Subsidiaries under
any such contract, in each case, other than in the ordinary course of business consistent with past practice; 
 (l) except as required by
Applicable Law or the terms of an Employee Plan as in effect on the date hereof, (i) implement any new severance plans or retention plans, modify the Company Transition Incentive Plan, modify any existing, or enter into any new, continuity,
retention or similar agreement (other than in a manner that will not increase the cost of such agreements by an amount equal to $15 million less the value of payments to be made under the Company Transition Incentive Plan), in each case with
existing or new Service Providers, (ii) increase the compensation or benefits provided to any current or former Service Provider, other than base salary increases of not more than 4% on average in the ordinary course of business consistent with
past practice, (iii) grant any equity, equity-based or other incentive awards to, or discretionarily accelerate the vesting or payment of any such awards held by, any current or former Service Provider or (iv) except as permitted pursuant
to clause (i), establish, adopt, enter into or amend any Employee Plan or Collective Bargaining Agreement; 
 (m) change the Company’s
methods of accounting, except as required by concurrent changes in GAAP or Applicable Law, including Regulation S-X of the 1934 Act, as agreed to by its independent public accountants; 

(n) settle, or offer to settle, (i) any material litigation, investigation, arbitration, proceeding or other claim or dispute involving
or against the Company or any of its Subsidiaries, (ii) any stockholder litigation, demand or dispute against the Company, any of its Subsidiaries or any of their respective officers or directors or (iii) any litigation, arbitration,
proceeding or other claim or dispute that relates to the transactions contemplated hereby, in each case other than the settlement of any litigation, investigation, arbitration, proceeding or other claim or dispute solely for monetary damages
(without any admission of wrongdoing, liability or other adverse consequences or restrictions on the Company, Parent, Merger Subsidiary or the Surviving Corporation) not in excess of $500,000 individually or $3,000,000 in the aggregate;
provided that the foregoing exception shall not apply to any matters covered by Section 6.06; 
 (o) except as may be required
by Applicable Law, make or change any material Tax election, change any annual tax accounting period for any material Taxes, adopt or change any method of tax accounting for any material Taxes, amend any material Tax Returns, enter into any closing
agreement in respect of material Taxes, settle any claim, audit or assessment in respect of material Taxes, or surrender any right to claim a material Tax refund, offset or other reduction in Tax liability; 

  
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 (p) fail to maintain existing material insurance policies or comparable replacement policies; or

 (q) agree, resolve or commit to do any of the foregoing. 

Section 6.02. Company Stockholder Meeting; Company Proxy Statement. (a) The Company shall use its reasonable best efforts to
cause a meeting of its stockholders (the “Company Stockholder Meeting”) to be duly called and held as soon as reasonably practicable (and in any event will use reasonable best efforts to cause the meeting to be held no later than 50
days after (i) the tenth calendar day after the preliminary Company Proxy Statement therefor has been filed with the SEC if by such date the SEC has not informed the Company that it intends to review the Company Proxy Statement or (ii) if
the SEC has by such date informed the Company that it intends to review the Company Proxy Statement, the date on which the SEC confirms that it has no further comments on the Company Proxy Statement) for the purpose of voting on the approval and
adoption of this Agreement, which may be the Company’s annual meeting of stockholders. The Company shall not, without the consent of Parent, adjourn or postpone the Company Stockholder Meeting; provided that the Company may, without the
consent of Parent, adjourn or postpone the Company Stockholder Meeting (A) if as of the time for which the Company Stockholder Meeting is originally scheduled (as set forth in the Company Proxy Statement) there are insufficient shares of
Company Common Stock represented (either in person or by proxy) to constitute a quorum necessary to conduct the business of the Company Stockholder Meeting, (B) if the failure to adjourn or postpone the Company Stockholder Meeting would
reasonably be expected to be a violation of Applicable Law or for the distribution of any required supplement or amendment to the Company Proxy Statement or (C) for up to three periods, neither of which shall exceed ten Business Days, to
solicit additional proxies if the Company reasonably determines that it is advisable or necessary to do so in order to obtain the Company Stockholder Approval. 

(b) In connection with the Company Stockholder Meeting, the Company shall use its reasonable best efforts to (i) prepare and file with
the SEC the preliminary Company Proxy Statement as soon as reasonably practicable (and in any event will use reasonable best efforts to file the preliminary Company Proxy Statement no later than 30 days from the date hereof), (ii) cause the
Company Proxy Statement and any amendments or supplements thereto, when filed, to comply in all material respects with all legal requirements applicable thereto, (iii) respond as promptly as reasonably practicable to and resolve all comments
received from the SEC or its staff concerning the Company Proxy Statement and all other proxy materials and (iv) cause the Company Proxy Statement to be mailed to its stockholders as promptly as reasonably practicable after resolution of all
such comments. Subject to Section 6.03(b), the Board of 

  
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Directors shall (A) recommend approval and adoption of this Agreement by the Company’s stockholders, (B) use its reasonable best efforts to obtain the Company Stockholder Approval,
(C) not effect an Adverse Recommendation Change and (D) use its reasonable best efforts to otherwise comply in all material respects with all legal requirements applicable to such meeting. Without limiting the generality of the foregoing,
unless this Agreement has been terminated in accordance with its terms, this Agreement and the Merger shall be submitted to the Company’s stockholders at the Company Stockholder Meeting whether or not an Adverse Recommendation Change shall have
occurred. 
 Section 6.03. No Solicitation; Other Offers. (a) General Prohibitions. Neither the Company nor any of
its Subsidiaries shall, nor shall the Company or any of its Subsidiaries authorize or permit any of its or their officers, directors, employees, investment bankers, attorneys, accountants, consultants or other agents or advisors
(“Representatives”) to, directly or indirectly, (i) solicit, initiate or knowingly take any action to facilitate or encourage the submission of any Acquisition Proposal, (ii) enter into or participate in any discussions or
negotiations with, furnish any nonpublic information relating to the Company or any of its Subsidiaries or afford access to the business, properties, assets, books or records of the Company or any of its Subsidiaries to, otherwise knowingly
cooperate in any way with, or knowingly assist, participate in, facilitate or encourage any effort by any Third Party that, to the knowledge of the Company, is seeking to make, or has made, an Acquisition Proposal, (iii) fail to include in the
Proxy Statement, or withdraw or modify in a manner adverse to Parent the Company Board Recommendation (or recommend an Acquisition Proposal or make any public statement that contradicts the Company Board Recommendation) (any of the foregoing in this
clause (iii), an “Adverse Recommendation Change”), (iv) approve any transaction under, or any Person becoming an “interested stockholder” under, Section 203 of Delaware Law or (v) enter into any agreement in
principle, letter of intent, term sheet, merger agreement, acquisition agreement, option agreement or other similar instrument relating to an Acquisition Proposal. It is agreed that any violation of the restrictions on the Company set forth in this
Section by any Representative of the Company or any of its Subsidiaries shall be a breach of this Section by the Company. 
 (b)
Exceptions. Notwithstanding Section 6.03(a), but subject to compliance in all material respects with this Section 6.03(b) and Sections 6.03(c) and (d), at any time prior to the adoption of this Agreement by the Company’s
stockholders: 
 (i) the Company, directly or indirectly through advisors, agents or other intermediaries or Representatives,
may (A) engage in negotiations or discussions with any Third Party and its Representatives 

  
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that, subject to the Company’s compliance with Section 6.03(a) in all material respects, has made after the date of this Agreement a bona fide, written Acquisition Proposal that
the Board of Directors reasonably believes will or would reasonably be expected to lead to a Superior Proposal, and waive such Third Party’s noncompliance with the provisions of any standstill agreement to the extent necessary to permit such
negotiations or discussions and (B) furnish to such Third Party or its Representatives non-public information relating to the Company or any of its Subsidiaries pursuant to a confidentiality agreement (a
copy of which shall be provided for informational purposes only to Parent) with such Third Party on substantially the same terms (other than standstill obligations) or terms more favorable to the Company than those contained in the confidentiality
agreement dated November 11, 2013 between the Company and Parent (the “Confidentiality Agreement”); provided that all such information (to the extent that such information has not been previously provided or made
available to Parent) is provided or made available to Parent, as the case may be, prior to or substantially concurrently with the time it is provided or made available to such Third Party); and 

(ii) subject to compliance with Section 6.03(d), the Board of Directors may make an Adverse Recommendation Change
(A) following receipt of a bona fide written Acquisition Proposal that the Board of Directors has determined constitutes a Superior Proposal or (B) in response to material events or changes in circumstances arising after the date
hereof that were neither known to nor reasonably foreseeable by the Board of Directors as of or prior to the date hereof (an “Intervening Event”), in each case referred to in the foregoing clauses (A) and (B) only if the
Board of Directors determines in good faith, after consultation with outside legal counsel, that the failure to take such action would be inconsistent with its fiduciary duties under Delaware Law. For the avoidance of doubt, notwithstanding any
Adverse Recommendation Change, until the termination of this Agreement in accordance with its terms (x) in no event may the Company (A) enter into any agreement in principle, letter of intent, term sheet, merger agreement, acquisition
agreement, option agreement or other similar instrument relating to an Acquisition Proposal (other than a confidentiality agreement permitted under Section 6.03(b)(i) above), or (B) without limitation of Section 6.03(b)(i) above,
make, facilitate or provide information for use by any Third Party in any SEC or other regulatory filings in connection with the transactions contemplated by any Acquisition Proposal, and (y) the Company shall otherwise remain subject to all of
its obligations under this Agreement. 

  
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 In addition, nothing contained herein shall prevent the Board of Directors from
(1) complying with Rule 14e-2(a) under the 1934 Act with regard to an Acquisition Proposal (including any disclosure to stockholders) so long as any action taken or statement made to so comply is consistent with this Section 6.03;
provided that any such action taken or statement made that relates to an Acquisition Proposal shall be deemed to be an Adverse Recommendation Change unless the Board of Directors reaffirms the Company Board Recommendation in such statement or
in connection with such action, (2) making any disclosure to the Company’s stockholders if the Company Board has determined in good faith, after consultation with its legal advisors, that the failure to do so would be inconsistent with the
directors’ fiduciary obligations under Delaware Law, including with respect to the fact that an Acquisition Proposal has been made, the identity of the party making such Acquisition Proposal or the material terms of such Acquisition Proposal
(and no such disclosure shall, taken by itself, be deemed to be an Adverse Recommendation Change); provided that any such disclosure that relates to an Acquisition Proposal shall be deemed to be an Adverse Recommendation Change unless the
Board of Directors reaffirms the Company Board Recommendation in such disclosure or in connection therewith, or (3) issuing a “stop, look and listen” disclosure or similar communication of the type contemplated by Rule 14d-9(f) under
the 1934 Act. 
 (c) Required Notices. The Company shall notify Parent promptly (but in no event later than 24 hours or, if received
on a day that is not a Business Day, the following Business Day) after receipt by the Company (or any of its Representatives) of any Acquisition Proposal, any indication that a Third Party is considering making an Acquisition Proposal or any request
for information relating to the Company or any of its Subsidiaries or for access to the business, properties, assets, books or records of the Company or any of its Subsidiaries by any Third Party that, to the knowledge of the Company, may be
considering making, or has made, an Acquisition Proposal. The Company shall provide such notice orally and in writing and shall identify the Third Party making, and the material terms and conditions of, any such Acquisition Proposal, indication or
request, subject to such restrictions as may exist under confidentiality agreements as in effect on the date hereof. The Company shall keep Parent fully informed, on a prompt basis, of any material changes to the status, terms or conditions of any
such Acquisition Proposal, indication or request and shall promptly (but in no event later than 24 hours after receipt or, if received on a day that is not a Business Day, the following Business Day) provide to Parent copies of all correspondence
and written materials sent or provided to the Company or any of its Subsidiaries that describes any material terms or conditions of any Acquisition Proposal. 

(d) “Last Look.” Further, the Board of Directors shall not make an Adverse Recommendation Change pursuant to
Section 6.03(b)(ii) (or terminate 

  
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this Agreement pursuant to Section 10.01(d)(i)), unless (i) the Company promptly provides written notice to Parent, in writing at least three Business Days before taking such action, of
its intention to do so (which notice shall not constitute an Adverse Recommendation Change), attaching (A) in the case of an Adverse Recommendation Change to be made following receipt of an Acquisition Proposal that the Board of Directors has
determined constitutes a Superior Proposal, the most current version of the proposed agreement under which such Superior Proposal is proposed to be consummated and the identity of the Third Party making the Acquisition Proposal, or (B) in the
case of an Adverse Recommendation Change to be made pursuant to an Intervening Event, a reasonably detailed description of the underlying facts giving rise to, and the reasons for making, such Adverse Recommendation Change, and (ii) Parent does
not make, within three Business Days after its receipt of that written notification, a binding and irrevocable written offer that (1) in the case of any Adverse Recommendation Change to be made following receipt of a Superior Proposal, is at
least as favorable to the stockholders of the Company as such Superior Proposal (it being understood and agreed that any amendment to the financial terms or other material terms of such Superior Proposal shall require a new written notification from
the Company and a new three Business Day period under this Section 6.03(d)) or (2) in the case of an Adverse Recommendation Change to be made pursuant to an Intervening Event, obviates the need for such Adverse Recommendation Change. The
Company agrees that, during any applicable three Business Day period referred to in this Section 6.03(d), the Company shall negotiate in good faith with Parent regarding any revisions to the terms of this Agreement proposed by Parent. 

(e) Definition of Superior Proposal. For purposes of this Agreement, “Superior Proposal” means a bona fide
written Acquisition Proposal for at least a majority of the equity or voting securities of the Company and its Subsidiaries or assets representing at least a majority of the consolidated revenues of the Company and its Subsidiaries, that was not
solicited in violation of Section 6.03(a) in all material respects and which is on terms that the Board of Directors determines in good faith by a majority vote, after considering the advice of a financial advisor of nationally recognized
reputation and outside legal counsel and taking into account all the terms and conditions of the Acquisition Proposal, including any break-up fees, expense reimbursement provisions, the availability of any financing (if a cash transaction) and
conditions to consummation, are more favorable from a financial point of view to the Company’s stockholders than as provided hereunder (taking into account any proposal by Parent to amend the terms of this Agreement pursuant to
Section 6.03(d)). 
 (f) Obligation of the Company to Terminate Existing Discussions. The Company shall, and shall cause its
Subsidiaries and its and their Representatives to, cease immediately and cause to be terminated any and all existing activities, 

  
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discussions or negotiations, if any, with any Third Party and its Representatives conducted prior to the date hereof with respect to any Acquisition Proposal. The Company shall promptly request
that each Third Party, if any, that has executed a confidentiality agreement within the 24-month period prior to the date hereof in connection with its consideration of any Acquisition Proposal return or destroy all confidential information
heretofore furnished to such Person by or on behalf of the Company or any of its Subsidiaries (and all analyses and other materials prepared by or on behalf of such Person that contains, reflects or analyzes that information) as promptly as
practicable, in accordance with, and to the extent provided for in, any applicable confidentiality agreement and subject to any contractual retention rights of any such Third Party. 

Section 6.04. Access to Information. From the date hereof until the Effective Time and subject to Applicable Law and the
Confidentiality Agreement, the Company shall (i) give to Parent, its counsel, financial advisors, auditors and other authorized representatives reasonable access (during regular business hours upon reasonable notice) to the offices, properties,
books and records of the Company and its Subsidiaries, (ii) furnish to Parent, its counsel, financial advisors, auditors and other authorized representatives such financial and operating data and other information as such Persons may reasonably
request and (iii) instruct its employees, counsel, financial advisors, auditors and other authorized representatives to cooperate with Parent in its investigation of the Company and its Subsidiaries. Any investigation pursuant to this Section
shall be conducted in such manner as not to interfere unreasonably with the conduct of the business of the Company and its Subsidiaries. No information or knowledge obtained by Parent in any investigation pursuant to this Section shall affect or be
deemed to modify any representation or warranty made by the Company hereunder. Notwithstanding the foregoing, the Company shall not be required to (A) furnish, or provide any access to, any information to any Person not a party to, or otherwise
covered by, the Confidentiality Agreement or a similar agreement with the Company with respect to such information or (B) provide access to or furnish any information if doing so would violate any Contract, or where such access to information
would involve the waiver or loss of an attorney-client or work product privilege so long as the Company has reasonably cooperated with Parent to permit such inspection of, or to disclose such, information on a basis that does not violate such
Contract or compromise or waive such privilege with respect thereto; provided, however, that such access and information shall be disclosed or granted, as applicable, to external counsel for Parent to the extent reasonably required for
the purpose of complying with applicable Antitrust Laws. With respect to any information disclosed pursuant to this Section 6.04, Parent and Merger Subsidiary shall comply with, and shall instruct their respective Representatives to comply
with, all of their respective obligations under the Confidentiality Agreement or any similar agreement entered into between the Company and any Person to whom the Company or any of is Representative 

  
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provides information pursuant to this Section 6.04, and all information disclosed to Parent, Merger Subsidiary or any of their respective Representatives pursuant to this Section 6.04
shall be subject to the terms of the Confidentiality Agreement. The confidentiality obligations set forth in the Confidentiality Agreement shall continue in full force and effect in accordance with its terms until the earlier of the Effective Time
or the expiration of the Confidentiality Agreement according to its terms. 
 Section 6.05. Compensation Arrangements. Prior to
the Effective Time, the Company shall take all such steps as may be required to cause any dispositions or other transactions in Company Common Stock (including derivative securities with respect to Company Common Stock) resulting from the
transactions contemplated by Article 2 of this Agreement by each individual who is subject to the reporting requirements of Section 16(a) of the 1934 Act with respect to the Company to be exempt under Rule 16b-3 promulgated under the 1934 Act.

 Section 6.06. Certain Litigation. The Company shall give Parent notice of and the opportunity to participate in the defense
or settlement of any litigation (including derivative claims) against the Company and/or its directors or executive officers relating to the transactions contemplated by this Agreement. The Company agrees that it shall not settle or offer to settle
any litigation commenced on or after the date of this Agreement against it or any of its directors or executive officers relating to this Agreement, the Merger or any other transaction contemplated hereby or otherwise, without the prior written
consent of Parent (not to be unreasonably withheld, conditioned or delayed). 
 Section 6.07. Company Series A Preferred Stock.
Prior to the Effective Time, the Company shall cause each outstanding share of Company Series A Preferred Stock to be converted into shares of Company Common Stock in accordance with the terms of the Company Certificate of Designation and, as of the
Effective Time, no shares of Company Series A Preferred Stock shall be issued or outstanding. 
 ARTICLE 7 

COVENANTS OF PARENT 

Parent agrees that: 

Section 7.01. Obligations of Merger Subsidiary. Parent shall take all action necessary to cause Merger Subsidiary to perform its
obligations under this Agreement and to consummate the Merger on the terms and conditions set forth in this Agreement. 

  
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 Section 7.02. Director and Officer Liability. Parent shall cause the Surviving
Corporation, and the Surviving Corporation hereby agrees, to do the following: 
 (a) For six years after the Effective Time, the Surviving
Corporation shall indemnify and hold harmless the present and former officers and directors of the Company (each, an “Indemnified Person”) in respect of acts or omissions occurring at or prior to the Effective Time to the fullest
extent provided under the Company’s certificate of incorporation and bylaws in effect on the date hereof or any indemnity agreements between the Company and its present and former officers in effect as of the date hereof, and, with respect to
any currently serving directors and officers of the Company, Parent and the Surviving Corporation shall be jointly and severally liable to pay and perform in a timely manner such obligations; provided that such indemnification shall be
subject to any limitation imposed from time to time under Applicable Law and such indemnity agreements. 
 (b) For six years after the
Effective Time, Parent shall cause to be maintained in effect provisions in the Surviving Corporation’s certificate of incorporation and bylaws (or in such documents of any successor to the business of the Surviving Corporation) regarding
elimination of liability of directors, indemnification of officers, directors and employees and advancement of expenses that are no less advantageous to the intended beneficiaries than the corresponding provisions in the Company’s certificate
of incorporation and bylaws in existence on the date of this Agreement. 
 (c) Prior to the Effective Time, the Company shall or, if the
Company is unable to, Parent shall cause the Surviving Corporation as of the Effective Time to obtain and fully pay the premium for a non-cancellable extension (or “tail”) of the Company’s directors’ and officers’ insurance
policies and fiduciary liability insurance policies (collectively, the “D&O Insurance”) in place as of the date hereof, in each case for a claims reporting or discovery period of at least six years from and after the Effective
Time (such period, the “Tail Period”), with terms, conditions, retentions and limits of liability that are at least as favorable as those contained in the Company’s D&O Insurance policies in effect as of the date hereof.
Parent shall, and shall cause the Surviving Corporation to, maintain such “tail” policies in full force and effect through such six year period. If the Company or the Surviving Corporation for any reason fails to obtain such
“tail” insurance policies as of the Effective Time, then from the Effective Time through the end of the Tail Period, Parent shall, or shall cause the Surviving Corporation to, maintain in effect the Company’s current D&O Insurance
covering each Person currently covered by the Company’s D&O Insurance for acts or omissions occurring prior to the Effective Time with respect to any matter claimed against such Person by reason of him or her serving in the applicable
capacity on terms with respect to such coverage and amounts no less favorable than those of such 

  
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D&O Insurance policies in effect on the date of this Agreement; provided that if the aggregate cost for such insurance coverage exceeds 200% of the current annual premium paid by the
Company (which amount is set forth in Section 7.02(c) of the Company Disclosure Schedule), the Surviving Corporation shall instead be obligated to obtain D&O Insurance with the best available coverage with respect to matters occurring at or
prior to the Effective Time for an aggregate cost of 200% of the current annual premium. 
 (d) If Parent, the Surviving Corporation or any
of its successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of
its properties and assets to any Person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of Parent or the Surviving Corporation, as the case may be, shall assume the obligations
set forth in this Section 7.02. 
 (e) The rights of each Indemnified Person under this Section 7.02 shall be in addition to any
rights such Person may have under the certificate of incorporation or bylaws of the Company or any of its Subsidiaries, under Delaware Law or any other Applicable Law or under any agreement of any Indemnified Person with the Company or any of its
Subsidiaries. These rights shall survive consummation of the Merger and are intended to benefit, and shall be enforceable by, each Indemnified Person. 

Section 7.03. Employee Matters. (a) During the period beginning at the Effective Time and ending on the first anniversary
thereof, Parent shall, or shall cause its Subsidiaries to, provide to each employee who is actively employed by the Company or its Subsidiaries at the Effective Time (each, a “Covered Employee”) and who is located primarily
(i) in the United States, compensation and benefits that are substantially comparable in the aggregate to the compensation and benefits (other than equity compensation and other long-term incentives, change in control, retention, transition,
stay or similar arrangements) that were provided to such Covered Employee under the Employee Plans set forth on Section 4.17(a) of the Company Disclosure Schedule immediately prior to the Effective Time and (ii) outside the United States,
compensation and benefits that, as determined by Parent in its sole discretion, either (x) were provided to such Covered Employee under the Employee Plans set forth on Section 4.17(a) of the Company Disclosure Schedule immediately prior to
the Effective Time or (y) are provided to similarly situated employees of Parent and its Subsidiaries (other than the Company and its Subsidiaries). 

(b) Without limiting paragraph (a) of this Section 7.03, during the period beginning at the Effective Time and ending on
June 30, 2014, Parent shall cause the Company to continue to perform the Company’s obligations with 

  
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respect to any Covered Employee who is covered by the ENTrigue severance policy in accordance with the terms of such policy, as such terms are set forth on Section 7.03(b) of the Company
Disclosure Schedule. 
 (c) Crediting of Payments. In the event any Covered Employee first becomes eligible to participate under any
employee benefit plan, program, policy or arrangement of Parent or any of its Subsidiaries (each, a “Parent Plan”) following the Effective Time, Parent shall, or shall cause its Subsidiaries to, use reasonable best efforts to:
(i) waive any preexisting condition exclusions and waiting periods with respect to participation and coverage requirements applicable to such Covered Employee under any Parent Plan providing medical, dental or vision benefits to the same extent
such limitation would have been waived or satisfied under the Employee Plan such Covered Employee participated in immediately prior to coverage under such Parent Plan and (ii) provide such Covered Employee with credit for any copayments and
deductibles paid under an Employee Plan prior to such Covered Employee’s coverage under any Parent Plan during the calendar year in which such amount was paid, to the same extent such credit was given under the Employee Plan such Covered
Employee participated in immediately prior to coverage under such Parent Plan in satisfying any applicable deductible or out-of-pocket requirements under such Parent Plan. 

(d) Service Crediting. As of the Effective Time, Parent shall, or shall cause its Subsidiaries to, recognize all service of each
Covered Employee prior to the Effective Time, with the Company and its Subsidiaries for vesting and eligibility purposes (but not for benefit accrual purposes, except for vacation and severance, as applicable). In no event shall anything contained
in this Section 7.03 result in any duplication of benefits for the same period of service. 
 (e) Company 401(k) Plan. Effective
as of immediately prior to the Effective Time, unless otherwise directed in writing by Parent at least five Business Days prior to the Effective Time, the Company shall terminate the Company’s Retirement Savings and Investment Plan, pursuant to
resolutions of the Board of Directors that are reasonably satisfactory to Parent. In connection with the termination of such plan, Parent shall permit each Covered Employee to make rollover contributions of “eligible rollover
distributions” (within the meaning of Section 401(a)(31) of the Code, but excluding all participant loans) in cash in an amount equal to the eligible rollover distribution portion of the account balance distributed to each such Covered
Employee from such plan to an “eligible retirement plan” (within the meaning of Section 401(a)(31) of the Code) of Parent or any of its Subsidiaries. 

(f) ESPP. Prior to the Effective Time, the Board of Directors or the appropriate committee thereof shall take all actions, including
adopting any resolutions or amendments, with respect to the Company’s Employee Stock 

  
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Purchase Plan (the “ESPP”) to: (i) cause the “Offering Period” (as defined in the ESPP) ongoing as of the date of this Agreement to be the final Offering Period
under the ESPP and the options under the ESPP to be exercised on the earlier of (x) the scheduled purchase date for such Offering Period and (y) the date that is seven Business Days prior to the Effective Time (with any participant payroll
deductions not applied to the purchase of shares returned to the participant), (ii) prohibit participants in the ESPP from increasing their payroll deductions from those in effect on the date of this Agreement and (iii) terminate the ESPP
effective immediately prior to the Effective Time. 
 (g) Employee Data. Not later than ten Business Days after the date hereof and
to the extent permitted by Applicable Law, the Company will provide Parent with a schedule that sets forth, for each employee of the Company or any of its Subsidiaries, his or her name, title, annual base salary, most recent annual bonus received,
current annual bonus opportunity, employer, hire date, location, whether full- or part-time and whether active or on leave (and, if on leave, the nature of the leave and the expected return date). Five Business Days prior to the Effective Time and
to the extent permitted by Applicable Law, the Company will provide Parent with a revised version of the schedule described in the immediately preceding sentence, updated as of ten Business Days prior to the Effective Time. 

(h) Labor Groups. The parties agree to work together in good faith to consult with or obtain the consent of any labor or trade union,
works council or other employee representative body as may be required to consummate the transactions contemplated hereby. 
 (i) Without
limiting the generality of Section 11.06, nothing in this Section 7.03, express or implied, (i) is intended to or shall confer upon any Person other than the parties hereto, including any Covered Employee or any former employee,
director, officer or individual independent contract of the Company or any of its Subsidiaries, any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, (ii) shall establish, or constitute an amendment,
termination or modification of, or an undertaking to amend, establish, terminate or modify, any benefit plan, program, agreement or arrangement, (iii) shall alter or limit the ability of Parent or any of its Subsidiaries (or, following the
Effective Time, the Company or any of its Subsidiaries) to amend, modify or terminate any benefit plan, program, agreement or arrangement at any time assumed, established, sponsored or maintained by any of them or (iv) shall create any
obligation on the part of Parent or its Subsidiaries (or, following the Effective Time, the Company or any of its Subsidiaries) to employ any Covered Employee for any period following the Effective Time. 

  
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 ARTICLE 8 

COVENANTS OF PARENT AND THE COMPANY 

The parties hereto agree that: 

Section 8.01. Reasonable Best Efforts. (a) Subject to the terms and conditions of this Agreement, the Company, Parent Holdco
and Parent shall use their reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under Applicable Law to consummate the transactions contemplated by this
Agreement as promptly as practicable and no later than the End Date, including (i) preparing and filing as promptly as practicable with any Governmental Authority or other Third Party all documentation to effect all necessary filings, notices,
petitions, statements, registrations, submissions of information, applications and other documents and (ii) obtaining and maintaining all approvals, consents, registrations, permits, authorizations and other confirmations required to be
obtained from any Governmental Authority or other Third Party that are necessary, proper or advisable to consummate the transactions contemplated by this Agreement, including by defending, contesting and resisting any actual or threatened claim,
suit, action, objection or other proceeding brought by a Governmental Authority or other Third Party challenging any transaction contemplated by this Agreement as violative of any Applicable Law, including Antitrust Laws, and seeking to have
vacated, lifted, reversed or overturned any decree, judgment, injunction or other order, whether temporary, preliminary or permanent, that prohibits, prevents or restricts consummation of the transactions contemplated by this Agreement by the End
Date or which would materially impair or materially delay the consummation of the transactions contemplated by this Agreement; provided that the parties hereto understand and agree that the reasonable best efforts of any party hereto shall not be
deemed to include (A) entering into any settlement, undertaking, consent decree, stipulation or agreement with any Governmental Authority in connection with the transactions contemplated hereby, or (B) divesting or otherwise holding
separate (including by establishing a trust or otherwise), or taking any other action (or otherwise agreeing to do any of the foregoing) with respect to any of its or the Surviving Corporation’s Subsidiaries or any of their respective
Affiliates’ businesses, assets or properties (any such action in the foregoing clause (A) or (B), a “Burdensome Condition”), other than the Agreed Actions. For the avoidance of doubt, without the prior written consent of
Parent, the Company shall not offer, propose or agree to any Burdensome Condition, including any Agreed Action. “Agreed Actions” means negotiation of and entry into a non-exclusive license on a worldwide basis with one or two third
parties (in no case shall this provision require licenses that would allow more than one third party to manufacture or have manufactured, or sell or have sold, products in overlapping fields of use), for use solely in the field of radiofrequency
energy in the sports medicine field of use, with respect to any or all of the following: (i) all 

  
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of the “Coblation” patents licensed by the Company or its Affiliates to Parent or its Affiliates enabling a third party to have manufactured or supplied, under commercially reasonable
terms, the same products that Parent or its Affiliates have manufactured or supplied as of the Effective Time, and improvements thereto by the third party, under existing agreements with the Company or its Affiliates, and any other patents of Parent
or its Affiliates, in each case to the extent embodied in Parent’s or its Affiliates’ “DYONICS RF” products as of the Effective Time, (ii) all patents owned or licensed by Parent and its Affiliates to the extent embodied in
their “E-FLEX” products at the Effective Time, and improvements thereto by the third party, (iii) intellectual property (excluding trademarks, trade names, brand names and domain names) and technical, development and other related
information and files, in each case to the extent related to any research and development efforts by Parent and its Affiliates that exist prior to the Effective Time with respect to new products or technology of Parent and its Affiliates using
radiofrequency energy in the sports medicine field of use, and (iv) all patents owned or licensed by Parent and its Affiliates as of the Effective Time to the extent embodied in other products, and improvements thereto by the third party,
(i.e., other than those covered in clauses (i) and (ii) but not the Excluded Products) of Parent and its Affiliates using radiofrequency energy in the sports medicine field of use; provided that in no event shall Parent or
its Affiliates be required to license patents embodied in any such other product under this clause (iv) to the extent that the product associated with such patents, individually or taken together with all other products associated with patents
licensed pursuant to this clause (iv), represented more than US $40 million of aggregate consolidated revenues of Parent Holdco for the twelve months ended November 30, 2013 (for the avoidance of doubt, revenues associated with products
incorporating “Coblation” intellectual property and with “DYONICS RF” products shall not be included for purposes of calculating the aggregate consolidated revenues in this clause (iv)) (all of the products described in clauses
(i), (ii), (iii) and (iv) above, including, for the avoidance of doubt, the DYONICS RF, E-FLEX, SCULPTOR and SAPHYRE product lines and Parent’s and its Affiliates’ RF consumables, the “Covered Products”), and
(v) know-how, design history files, technical information and related documentation and intellectual property owned or licensed by Parent and its Affiliates as of the Effective Time related to the Covered Products which are reasonably necessary
to allow a licensee to register, make, use and sell Covered Products, and to make improvements to the Covered Products, on a worldwide basis. Notwithstanding the foregoing, (A) in no event shall the Covered Products include (x) the
Company’s or its Affiliates’ products utilizing temperature sensing technology or (y) “ELECTROBLADE” (the products described in (x) and (y) collectively, the “Excluded Products”) and (B) to
the extent that any third party’s consent is required in connection with the Agreed Actions the parties shall only be required to take commercially reasonable efforts to obtain such consents. “Agreed Actions” shall also include
negotiation of and entry into transitional technical 

  
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support agreements, transitional manufacturing or interim supply agreements and other ancillary agreements that Governmental Authorities customarily require in connection with settlements,
undertakings, consent decrees, stipulations and other agreements related to Antitrust Laws that involve licenses of intellectual property, to the extent reasonably necessary to permit a licensee to enter into the manufacture and sale of Covered
Products on a worldwide basis. For the avoidance of doubt, as used in the definition of “Agreed Actions,” Parent and its Affiliates excludes the Company and its Affiliates. 

(b) In furtherance and not in limitation of the foregoing, each of Parent and the Company shall make an appropriate filing of a Notification
and Report Form pursuant to the HSR Act with respect to the transactions contemplated hereby as promptly as practicable after the date of this Agreement and shall make such other filings or submissions with Governmental Authorities in the
jurisdictions set forth in Section 9.01(b) of the Company Disclosure Schedule as promptly as practicable, and supply as promptly as practicable any additional information and documentary material that may be requested pursuant to the HSR Act or
such other Antitrust Laws and shall use their reasonable best efforts to take all other actions necessary to cause the expiration or termination of the applicable waiting periods under the HSR Act and the receipt or occurrence of approvals,
consents, registrations, permits, authorizations, clearances, non-actions, investigation closures and conclusions and other confirmations in the jurisdictions set forth in Section 9.01(b) of the Company Disclosure Schedule (if filings or
submissions are made in such jurisdictions) as soon as practicable and no later than the End Date. In furtherance of and without limiting the foregoing, (i) to the extent permitted by applicable Law, Parent shall, on behalf of the parties,
control and lead all joint filings, communications, defense, litigation, negotiations and strategy relating to the HSR Act or any other Competition Law regarding any of the transactions contemplated hereby; provided that each party shall
consult, and share drafts of any filings or communications, a reasonable period of time in advance with respect to and consider in good faith the comments and views of the other party in connection with any filing, communication, defense,
litigation, negotiation or strategy and any final decisions with respect thereto in each case relating to the HSR Act or any other Competition Law regarding any of the transactions contemplated hereby, to the extent reasonably practicable and to the
extent permitted by applicable Law, and shall give the other party and its Representatives a reasonable advance opportunity to attend and participate in any in-person or telephonic meeting or conference with any Governmental Authority or, in
connection with any litigation by a private party, relating to the HSR Act or any other Competition Law regarding any of the transactions contemplated hereby, and shall provide concurrent copies to the other party of any material written
communications or filings with respect thereto, and (ii) notwithstanding the foregoing, neither Parent nor the Company shall without the consent of the other party (not to be unreasonably withheld, delayed or conditioned) (A) consent

  
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to any voluntary extension of any statutory deadline or waiting period or to any voluntary delay of the consummation of the transactions contemplated by this Agreement at the behest of any
Governmental Authority acting pursuant to the HSR Act or any other Competition Law or (B) withdraw any Notification and Report Form filed pursuant to the HSR Act. Parent shall control negotiations with respect to Agreed Actions; provided
that Parent and its Representatives shall keep the Company and its Representatives informed on a current and regular basis and consult and consider in good faith the comments and views of the Company in connection with (i) the timing and terms
of any solicitation or proposal process undertaken in connection with any Agreed Actions and (ii) the status and terms of offers and negotiations with any third party with respect to any Agreed Actions, including in each case providing copies
of any material proposals, counterproposals or agreements. 
 (c) Prior to the Closing, each party hereto shall (i) consult with the
other parties hereto with respect to, and shall provide any necessary or appropriate information with respect to (and, in the case of correspondence, provide the other parties (or their counsel) copies of), all filings made by such party with any
Governmental Authority or any other information supplied by such party to, or meetings, conferences or correspondence with, any Governmental Authority in connection with this Agreement, the Merger or the other transactions contemplated by this
Agreement, (ii) permit the other parties or their counsel to review in advance, where appropriate, any information, correspondence or filing (and the documents submitted therewith) intended to be given by it to any Governmental Authority;
provided that such materials may be supplied on an outside counsel only basis where they include competitively sensitive information, (iii) to the extent permitted by the applicable Governmental Authority, give the other parties or their
counsel the opportunity to attend and participate in any meetings or conferences with such Governmental Authority and (iv) if such party receives a request for additional information or documentary material from any Governmental Authority with
respect to the Merger or any of the other transactions contemplated by this Agreement, use reasonable best efforts to provide, or cause to be provided, after consultation with the other parties hereto, such additional information or material as
promptly as practicable. Subject to Applicable Laws and the instructions of any Governmental Authority, the Company and Parent each shall keep the other apprised of the status of matters relating to the obtaining of any consents, approvals,
registrations, authorizations, waivers, permits and orders contemplated by this Section 8.01 and Section 8.02. 
 (d) At
Parent’s sole cost and expense, the Company shall, and shall cause its Subsidiaries and its and their respective officers, directors, employees, financial advisors, attorneys, accountants and other advisors, investment bankers and other
Representatives to, use its commercially reasonable efforts to cooperate with Parent in its efforts to consummate the financing transactions that Parent or 

  
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Merger Subsidiary may undertake to finance the Merger and the other transactions contemplated by this Agreement; provided that Parent shall indemnify and hold harmless the Company and its
Subsidiaries and its and their respective officers, directors, employees, financial advisors, attorneys, accountants and other advisors, investment bankers and other Representatives from and against any and all liabilities, losses, damages, claims,
costs, expenses, interest, awards, judgments and penalties suffered or incurred in connection with such financing or any assistance or activities provided in connection therewith except that the foregoing shall not apply in the willful misconduct or
gross negligence of the Company or its Subsidiaries and its and their respective officers, directors, employees, financial advisors, attorneys, accountants and other advisors, investment bankers and other Representatives. Such commercially
reasonable efforts shall include, to the extent reasonably requested by Parent, (i) providing direct contact between prospective financing sources and the senior management of the Company (including participation in due diligence sessions),
(ii) providing assistance in preparation of confidential information memoranda, preliminary offering memoranda, financial information and other materials to be used in connection with obtaining such financing (including the provision of due
diligence materials); provided that the Company shall have the right to review and comment on such materials prior to their dissemination to potential lenders or other counterparties to any proposed financing transaction,
(iii) cooperation with the marketing efforts of Parent and its financing sources for such financing, including use of the Company’s logos and participation in a reasonable number of management presentation sessions, “road shows”
and sessions with rating agencies, (iv) providing assistance in obtaining any consents of third parties necessary in connection with such financing, (v) providing assistance in extinguishing existing indebtedness of the Company and its
Subsidiaries and releasing the Liens securing such indebtedness, in each case to take effect at the Effective Time; provided that such assistance shall not require the Company or any of its Affiliates to agree to any contractual obligation
relating to the financing that is not conditioned upon the Closing and that does not terminate without liability to the Company or any of its Affiliates upon the termination of this Agreement, (vi) cooperation with respect to matters relating
to pledges of collateral to take effect at the Effective Time in connection with such financing, (vii) assisting Parent in obtaining legal opinions to be delivered in connection with such financing and (viii) assisting Parent in securing
the cooperation of the independent accountants of the Company, including with respect to the delivery of accountants’ comfort letters. 

(e) Parent shall use its reasonable best efforts to take, or cause to be taken, all actions and do, or cause to be done, all things reasonably
necessary or advisable to arrange and consummate any financing necessary for it to consummate the Merger and the transactions contemplated by this Agreement as promptly as practicable following the date of this Agreement and prior to the End

  
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Date. Parent shall consult with and keep the Company informed in reasonable detail of the status of its efforts to arrange such financing. 

Section 8.02. Certain Filings. (a) The Company and Parent shall cooperate with one another (i) in connection with the
preparation of the Company Proxy Statement, (ii) in determining whether any action by or in respect of, or filing with, any Governmental Authority is required, or any actions, consents, approvals or waivers are required to be obtained from
parties to any material contracts, in connection with the consummation of the transactions contemplated by this Agreement and (iii) in taking such actions or making any such filings, furnishing information required in connection therewith or
with the Company Proxy Statement and seeking timely to obtain any such actions, consents, approvals or waivers. Subject to Section 6.04 and Applicable Law, each of Parent and the Company shall, upon request by the other, furnish the other with
all information concerning itself, its Subsidiaries, directors, officers and equityholders and such other matters as may be reasonably necessary, proper or advisable in connection with any statement, filing, notice, or application, submission or
response required to be made by or on behalf of Parent, the Company or any of their respective Subsidiaries to any Third Party or any Governmental Authority in connection with the Merger and the other transactions contemplated by this Agreement. In
exercising the foregoing rights, each of Parent and the Company shall act reasonably and as promptly as reasonably practicable. With respect to any non-public information provided by or on behalf of Parent pursuant to this Section 8.02 or
otherwise pursuant to this Agreement that is not intended for use in the Company Proxy Statement or related filings, the Company shall be bound by the confidentiality obligations (but not the other obligations) set forth in the Confidentiality
Agreement as though the Company was “you” and Parent Holdco was (collectively with its Subsidiaries) the “Company” under the Confidentiality Agreement, subject to any exceptions set forth therein. 

(b) Parent and its counsel shall be given a reasonable opportunity to review and comment on the Company Proxy Statement each time before it is
filed with the SEC, and the Company shall give reasonable and good faith consideration to any comments made by Parent and its counsel. The Company shall provide Parent and its counsel with (i) any comments or other communications, whether
written or oral, that the Company or its counsel may receive from time to time from the SEC or its staff with respect to the Company Proxy Statement promptly after receipt of those comments or other communications and (ii) a reasonable
opportunity to participate in the Company’s response to those comments and to provide comments on that response (to which reasonable and good faith consideration shall be given), including by participating with the Company or its counsel in any
discussions or meetings with the SEC. 

  
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 Section 8.03. Public Announcements. The initial press release regarding the execution
of this Agreement and the transactions contemplated hereby shall be a joint press release by the Company and Parent in a mutually agreed upon form and thereafter, to the extent permitted by Applicable Law, Parent and the Company shall consult with
each other before, directly or indirectly through any Representatives, issuing any press release, having any communication with the press (whether or not for attribution), making any other public statement (which, for the avoidance of doubt, shall
not include private communications with investors or analysts), press release or scheduling or participating in any press conference or conference call with investors or analysts with respect to this Agreement or the transactions contemplated
hereby, and, except in respect of any press release or other communication as may be required by Applicable Law or any listing agreement with or rule of any national securities exchange or association, shall not issue any such press release, have
any such communication with the press or make any such other public statement or schedule or participate in any such press conference or scheduled conference call without the consent of the other party. Notwithstanding the foregoing, in connection
with any action by the Company or the Board of Directors contemplated by Section 6.03(b), the Company shall not be required to consult with or obtain the consent of Parent prior to issuing any press release or otherwise making public
announcements in compliance with Section 6.03(b). 
 Section 8.04. Further Assurances. At and after the Effective Time, the
officers and directors of the Surviving Corporation shall be authorized to execute and deliver, in the name and on behalf of the Company or Merger Subsidiary, any deeds, bills of sale, assignments or assurances and to take and do, in the name and on
behalf of the Company or Merger Subsidiary, any other actions and things to vest, perfect or confirm of record or otherwise in the Surviving Corporation any and all right, title and interest in, to and under any of the rights, properties or assets
of the Company acquired or to be acquired by the Surviving Corporation as a result of, or in connection with, the Merger. 

Section 8.05. Notices of Certain Events. Each of the Company and Parent shall promptly notify the other of: 

(a) any material notice or other material communication from any Person alleging that the consent of such Person is or may be required in
connection with the transactions contemplated by this Agreement; 
 (b) any material notice or other material communication from any
Governmental Authority in connection with the transactions contemplated by this Agreement; 

  
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 (c) any actions, suits, claims, investigations or proceedings commenced or, to its knowledge,
threatened against, relating to or involving or otherwise affecting the Company or any of its Subsidiaries, or Parent or any of its Subsidiaries, as the case may be, that, if pending on the date of this Agreement, would have been required to have
been disclosed pursuant to any Section of this Agreement or that relate to the consummation of the transactions contemplated by this Agreement; and 

(d) upon the senior executives of such party becoming aware of the occurrence, or non-occurrence, of any event that, individually or in the
aggregate, would reasonably be expected to cause any condition to the obligations of any party to effect the Merger set forth in Article 9 not to be satisfied. 

Section 8.06. De-listing; Deregistration. Prior to the Effective Time, the Company shall cooperate with Parent and use its
reasonable best efforts to take, or cause to be taken, all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under Applicable Laws and rules and policies of NASDAQ to enable the de-listing by the
Surviving Corporation of the Company Common Stock from NASDAQ and the deregistration of the Company Common Stock under the 1934 Act as promptly as practicable after the Effective Time. 

Section 8.07. Takeover Statutes. If any “control share acquisition,” “fair price,” “moratorium” or
other antitakeover or similar statute or regulation shall become applicable to the transactions contemplated by this Agreement, each of the Company, Parent and Merger Subsidiary and the respective members of their boards of directors shall, to the
extent permitted by Applicable Law, use reasonable best efforts to grant such approvals and to take such actions as are reasonably necessary so that the transactions contemplated by this Agreement may be consummated as promptly as practicable on the
terms contemplated herein and otherwise to take all such other actions as are reasonably necessary to eliminate or minimize the effects of any such statute or regulation on the transactions contemplated hereby. 

ARTICLE 9 

CONDITIONS TO THE MERGER 

Section 9.01. Conditions to the Obligations of Each Party. The obligations of the Company, Parent and Merger Subsidiary to
consummate the Merger are subject to the satisfaction of the following conditions: 
 (a) the Company Stockholder Approval shall have been
obtained in accordance with Delaware Law; 

  
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 (b) all applicable waiting periods (and any extensions thereof) under the HSR Act shall have
expired or been terminated, and all consents, approvals, authorizations, clearances, non-actions or investigation closures or conclusions under the Antitrust Laws of the jurisdictions set forth in Section 9.01(b) of the Company Disclosure
Schedule shall have been made, obtained or taken, and any applicable waiting periods or periods to apply for a review of any decision thereunder shall have expired or been terminated; provided that no such waiting period or review period
shall have terminated or expired, and no such approval shall have been obtained, subject to or conditioned upon the imposition of a Burdensome Condition, other than the Agreed Actions; and 

(c) no provision of any Applicable Law shall enjoin, prohibit or otherwise make illegal the consummation of the Merger. 

Section 9.02. Conditions to the Obligations of Parent and Merger Subsidiary. The obligations of Parent and Merger Subsidiary to
consummate the Merger are subject to the satisfaction (or, to the extent permitted by Applicable Law, waiver) of the following further conditions: 

(a) (i) the Company shall have performed in all material respects all of its obligations hereunder required to be performed by it at or prior
to the Effective Time; (ii) (A) the representations and warranties of the Company contained in Section 4.05(a) and (b) shall be true and correct at and as of the date of this Agreement and at and as of the Effective Time as if
made at and as of such time (other than any such representations and warranties that by their terms address matters only at and as of another specified time, which shall be true and correct, only at and as of such time), in each case, subject to
such exceptions as would not, individually or in the aggregate, reasonably be expected to cause the aggregate consideration to be paid by Parent and Merger Subsidiary to holders of Company Securities under this Agreement to increase by $7,500,000 or
more, (B) the representation and warranty of the Company contained in Section 4.10(a)(ii) shall be true and correct at and as of the times specified therein, (C) the representations and warranties of the Company contained in
Section 4.21 shall be true and correct in all material respects at and as of the date of this Agreement and at and as of the Effective Time as if made at and as of such time, and (D) all other representations and warranties of the Company
contained in this Agreement or in any certificate or other writing delivered by the Company pursuant hereto shall be true and correct (disregarding all materiality and Company Material Adverse Effect qualifications contained therein) at and as of
the date of this Agreement and at and as of the Effective Time as if made at and as of such time (other than any such representations and warranties that by their terms address matters only as of another specified time, which shall be true and
correct (disregarding all materiality and Company Material Adverse Effect qualifications contained therein) only as of such time), with, in the case of this clause (D) only, only such 

  
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exceptions as have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect; and (iii) Parent shall have received a
certificate signed by an executive officer of the Company to the foregoing effect; 
 (b) no event, occurrence, revelation, development,
change or state of circumstances or facts which, individually or in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect shall have occurred since the date of this Agreement and be continuing; 

(c) there shall not have been instituted and remain pending any unresolved action or proceeding by any Governmental Authority
(i) challenging or seeking to make illegal, enjoin or otherwise to restrain or prohibit the consummation of the Merger, (ii) seeking to restrain or prohibit the ownership or operation by Parent, the Company or any of their respective
Affiliates of all or any portion of the businesses or assets of any of Parent, the Company or any of their respective Affiliates following the Closing, except in any such case in so far as such restraint or prohibition would constitute an Agreed
Action, or (iii) seeking to compel Parent, the Company or any of their respective Affiliates to take or accept any Burdensome Condition, other than an Agreed Action; and 

(d) no Applicable Law shall have been enacted, enforced, promulgated or issued that has or would result in a Burdensome Condition, other than
an Agreed Action. 
 Section 9.03. Conditions to the Obligations of the Company. The obligations of the Company to consummate
the Merger are subject to the satisfaction (or, to the extent permitted by Applicable Law, waiver) of the following further conditions: 

(a) (i) each of Parent and Merger Subsidiary shall have performed in all material respects all of its obligations hereunder required to be
performed by it at or prior to the Effective Time; (ii) (A) the representations and warranties of Parent and Merger Subsidiary that are qualified by reference to Parent Material Adverse Effect shall be true and correct at and as of the
date of this Agreement and at and as of the Effective Time as if made at and as of such time (other than any such representations and warranties that by their terms address matters only at and as of another specified time, which shall be true and
correct only at and as of such time), (B) the representations and warranties of Parent and Merger Subsidiary contained in Section 5.07 shall be true and correct in all material respects at and as of the date of this Agreement and at and as
of the Effective Time as if made at and as of such time (other than any such representations and warranties that by their terms address matters only at and as of another specified time, which shall be true and correct in all material respects only
at and as of such time) and (C) all 

  
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other representations and warranties of Parent and Merger Subsidiary contained in this Agreement or in any certificate or other writing delivered by Parent or Merger Subsidiary pursuant hereto
shall be true and correct (disregarding all materiality qualifications contained therein) at and as of the date of this Agreement and at and as of the Effective Time as if made at and as of such time (other than any such representations and
warranties that by their terms address matters only as of another specified time, which shall be true and correct (disregarding all materiality qualifications contained therein) only at and as of such time), with, in the case of this clause
(C) only, only such exceptions as have not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect; and (iii) the Company shall have received a certificate signed by an executive
officer of Parent to the foregoing effect; and 
 (b) there shall not have been instituted and remain pending any unresolved action or
proceeding by any Governmental Authority seeking to make illegal, enjoin or otherwise to restrain or prohibit the consummation of the Merger. 

ARTICLE 10 

TERMINATION 

Section 10.01. Termination. This Agreement may be terminated and the Merger may be abandoned at any time prior to the Effective
Time (notwithstanding any approval of this Agreement by the stockholders of the Company): 
 (a) by mutual written agreement of the Company
and Parent; 
 (b) by either the Company or Parent, if: 

(i) the Merger has not been consummated on or before July 2, 2014 (the “End Date”); provided that
if, as of the End Date, the conditions set forth in Section 9.01(b), Section 9.01(c), Section 9.02(c) or Section 9.02(d) shall not have been satisfied or waived then, upon notice given by Parent or the Company to the other party
not later than 6:00 p.m., Eastern Time, on the End Date, the End Date shall be extended to and including September 2, 2014, which date shall thereupon constitute the End Date of all purposes of this Agreement ; provided, further,
that, if Parent and the Company mutually agree to extend the End Date not later than (A) September 2, 2014 they may extend the End Date to October 2, 2014 and (B) October 2, 2014 they may extend the End Date to
November 3, 2014; provided, further, that the right to terminate this Agreement pursuant to this Section 10.01(b)(i) shall not be available to any party 

  
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whose breach of any provision of this Agreement is the proximate cause of the failure of the Merger to be consummated by such time; 

(ii) there shall be any Applicable Law that (A) makes consummation of the Merger illegal or otherwise prohibited,
(B) restrains or enjoins the Company or Parent from consummating the Merger and has become final and nonappealable or (C) conditions the consummation of the Merger on the acceptance of, or the taking of any action that constitutes, a
Burdensome Condition (other than an Agreed Action) and has become final and nonappealable; or 
 (iii) at the Company
Stockholder Meeting (including any adjournment or postponement thereof), the Company Stockholder Approval shall not have been obtained; 

(c) by Parent, if: 

(i) an Adverse Recommendation Change shall have occurred or at any time after receipt or public announcement of an Acquisition
Proposal, the Board of Directors shall have failed to reaffirm the Company Board Recommendation as promptly as practicable (but in any event within ten Business Days) after receipt of any written request to do so from Parent; 

(ii) there shall have been a material breach of Section 6.03 on the part of the Company; or 

(iii) a breach of any representation or warranty or failure to perform any covenant or agreement on the part of the Company set
forth in this Agreement shall have occurred that would cause the conditions set forth in Section 9.02(a) not to be satisfied and such breach or failure to perform (A) is incapable of being cured by the End Date or (B) has not been
cured by the Company within 30 days following notice to the Company from Parent or Merger Subsidiary of such breach or failure to perform; 

(d) by the Company if: 

(i) prior to the Company Stockholder Meeting, if the Board of Directors shall have made an Adverse Recommendation Change in
compliance in all material respects with the terms of Section 6.03, in order to enter into a definitive, written agreement concerning a Superior Proposal; provided that the Company shall have paid any amount due pursuant to
Section 11.04(b) in accordance therewith; or 

  
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 (ii) a breach in any material respect of any representation or warranty or
failure to perform any covenant or agreement on the part of Parent or Merger Subsidiary set forth in this Agreement shall have occurred that would cause the conditions set forth in Section 9.03(a) not to be satisfied and such breach or failure
to perform (A) is incapable of being cured by the End Date or (B) has not been cured by Parent or Merger Subsidiary, as applicable, within 30 days following notice to Parent or Merger Subsidiary from the Company of such breach or failure
to perform. 
 The party desiring to terminate this Agreement pursuant to this Section 10.01 (other than pursuant to Section 10.01(a)) shall give
notice of such termination to the other party. 
 Section 10.02. Effect of Termination. If this Agreement is terminated pursuant
to Section 10.01, this Agreement shall become void and of no effect without liability of any party (or any stockholder, director, officer, employee, agent, consultant or representative of such party) to any other party hereto; provided
that, if such termination shall result from the intentional (i) failure of either party to fulfill a condition to the performance of the obligations of the other party, (ii) failure of either party to perform a covenant hereof or
(iii) breach by either party of any representation or warranty herein, such party shall be fully liable for any and all liabilities and damages incurred or suffered by the other party as a result of such failure. The provisions of this
Section 10.02 and Sections 11.01, 11.04, 11.07, 11.08 and 11.09 shall survive any termination hereof pursuant to Section 10.01. For purposes of this Section 10.02, “intentional breach” or “intentional failure”
means a material breach of any representation or warranty or a material failure to fulfill a condition or perform a covenant that, in any such case, is a consequence of an act or omission undertaken by the party breaching or failing to perform with
the knowledge that the taking of, or failure to take, such act would, or would reasonably be expected to, cause a breach of this Agreement, and with the intent that that such act or omission actually breach this agreement. 

ARTICLE 11 

MISCELLANEOUS 

Section 11.01. Notices. All notices, requests and other communications to any party hereunder shall be in writing (including
facsimile transmission and electronic mail (“e-mail”) transmission, so long as such e-mail is actually received) and shall be given, 

  
 75 

 if to Parent or Merger Subsidiary, to: 

 

			
	 Smith & Nephew, Inc.
 150
Minuteman Road
 Andover, MA 01810
 Attention: General
Counsel
 Facsimile No.: (978) 749 1599
 E-mail:
Company.Secretary@smith-nephew.com

 with a copy to: 
  

			
	 Davis Polk & Wardwell LLP

450 Lexington Avenue
 New York, New York 10017

	Attention:	  	 George R. Bason, Jr.
 Michael
Davis

	Facsimile No.:	  	(212) 701-5800
	E-mail:	  	 george.bason@davispolk.com

michael.davis@davispolk.com

 if to Parent Holdco, to: 
  

			
	 Smith & Nephew plc
 15 Adam
Street
 London
 WC2N 6LA

United Kingdom
 Attention: Chief Legal Officer

Facsimile No.: +44 (0)20 7930 3353
 Attention: Company
Secretary
 E-mail: Company.Secretary@smith-nephew.com

 with a copy to: 
  

			
	 Davis Polk & Wardwell LLP

450 Lexington Avenue
 New York, New York 10017

	Attention:	  	 George R. Bason, Jr.
 Michael
Davis

	Facsimile No.:	  	(212) 701-5800
	E-mail:	  	 george.bason@davispolk.com

michael.davis@davispolk.com

  
 76 

 if to the Company, to: 
  

			
	 ArthroCare Corporation
 7000 West
William Cannon
 Building 1
 Austin, TX 78735

	Attention:	  	Richard Rew, General Counsel
	Facsimile No.:	  	(512) 391-3901
	E-mail:	  	richard.rew@arthrocare.com

 with a copy to: 
  

			
	 Latham & Watkins LLP
 885
Third Avenue
 New York, NY 10022
 Attention: Charles K. Ruck
and Josh Dubofsky
 Facsimile No.: (212) 751-4864
 E-mail:
charles.ruck@lw.com, josh.dubofsky@lw.com

 or to such other address or facsimile number as such party may hereafter specify for the purpose by notice to the other
parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. New York time. Otherwise, any such notice, request or communication shall be
deemed to have been received on the next succeeding day. 
 Section 11.02. Survival of Representations and Warranties. The
representations and warranties contained herein and in any certificate or other writing delivered pursuant hereto shall not survive the Effective Time. 

Section 11.03. Amendments and Waivers. (a) Any provision of this Agreement may be amended or waived prior to the Effective
Time if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement or, in the case of a waiver, by each party against whom the waiver is to be effective; provided that
after the Company Stockholder Approval has been obtained there shall be no amendment or waiver that would require the further approval of the stockholders of the Company under Delaware Law without such approval having first been obtained. 

(b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies
provided by Applicable Law. 

  
 77 

 Section 11.04. Expenses. (a) General. Except as otherwise provided
herein, all costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense; provided, however, that the Surviving Corporation shall pay all transfer, documentary, sales, use, stamp,
registration and other similar such Taxes and fees (including penalties and interest) incurred in connection with the transactions contemplated by Article 2. 

(b) Termination Fee. 

(i) If this Agreement is terminated by Parent pursuant to Section 10.01(c)(i) or Section 10.01(c)(ii), or by the
Company pursuant to Section 10.01(d)(i), then the Company shall pay to Parent Holdco in immediately available funds $54,900,000 (the “Termination Fee”) in order to compensate Parent Holdco for the loss of opportunity or rights
under this Agreement and expenses incurred in furtherance of the transactions contemplated by this Agreement by Parent Holdco after the date hereof. Such payment shall be made, in the case of a termination by Parent, within one Business Day after
such termination and, in the case of a termination by the Company, immediately before and as a condition to such termination (provided that Parent has provided wire instructions with respect to such payment and otherwise promptly following
receipt of such wire instructions). 
 (ii) If (A) this Agreement is terminated by Parent or the Company pursuant to
Section 10.01(b)(i) or Section 10.01(b)(iii), (B) after the date of this Agreement and prior to such termination, an Acquisition Proposal shall have been publicly announced and not publicly and unconditionally withdrawn at least five
(5) Business Days prior to (x) the date of termination, in the case of a termination pursuant to Section 10.01(b)(i) or (y) the Company Stockholder Meeting, in the case of a termination pursuant to Section 10.01(b)(iii),
(C) in the case of a termination pursuant to Section 10.01(b)(i), at the time of such termination the condition set forth in Section 9.01(a) shall not have been satisfied, and (D) within nine (9) months following the date of
such termination, the Company shall have entered into a definitive agreement with respect to or recommended to its stockholders an Acquisition Proposal or an Acquisition Proposal shall have been consummated (provided that for purposes of this
clause (ii), each reference to “15%” in the definition of Acquisition Proposal shall be deemed to be a reference to “50%”), then the Company shall pay to Parent Holdco in immediately available funds, concurrently with the
occurrence of the applicable event described in clause (D), the Termination Fee in order to compensate Parent Holdco for the loss of opportunity or rights under this Agreement and expenses 

  
 78 

 
incurred in furtherance of the transactions contemplated by this Agreement by Parent Holdco after the date hereof. 

(iii) For the avoidance of doubt, in no event shall the Company be obligated to pay, or cause to be paid, the Termination Fee
on more than one (1) occasion. 
 (c) Other Costs and Expenses. Each party acknowledges that (i) the agreements contained
in Section 11.04(b) are an integral part of the transactions contemplated by this Agreement, (ii) the amounts payable pursuant to Section 11.04(b) are not a penalty or liquidated damages, (iii) notwithstanding anything to the
contrary in this Agreement, except as set forth in the last sentence of this Section 11.04(c), in the event that any Termination Fee is paid or payable pursuant to Section 11.04(b), Parent’s right to receive payment of the Termination
Fee shall be the sole and exclusive remedy of Parent and its Affiliates and Representatives against the Company and its Affiliates and Representatives under this Agreement or arising out of or related to this Agreement or the transactions
contemplated hereby, and upon payment of such amount, none of the Company or any of its Affiliates or Representatives shall have any liability or obligation relating to or arising out of this Agreement or the transactions contemplated hereby, in
each case whether based on contract, tort or strict liability, by the enforcement of any assessment, by any legal or equitable proceeding, by virtue of any statute, regulation or applicable Laws or otherwise and (iv) without the agreements
contained in Section 11.04(b) and this Section 11.04(c), Parent and the Company would not have entered into this Agreement. Accordingly, (A) if the Company fails to promptly pay the Company Termination Fee when due pursuant to
Section 11.04(b) and, in order to obtain such payment, Parent commences a suit that results in a judgment against the Company for the amount set forth in Section 11.04(b), the Company shall pay to Parent reasonable costs and expenses
(including reasonable attorneys’ fees) incurred by Parent in connection with such suit, together with interest on such amount or portion thereof at the prime rate of Citibank N.A. in effect on the date such payment was required to be made
through the date of payment. 
 Section 11.05. Disclosure Schedule and SEC Document References. (a) The parties hereto
agree that any reference in a particular Section of either the Company Disclosure Schedule or the Parent Disclosure Schedule shall only be deemed to be an exception to (or, as applicable, a disclosure for purposes of) (i)the representations and
warranties (or covenants, as applicable) of the relevant party that are contained in the corresponding Section of this Agreement and (ii) any other representations and warranties (or covenants, as applicable) of such party that is contained in
this Agreement, but only if the relevance of that reference as an exception to (or a disclosure for purposes of) such representations 

  
 79 

 
and warranties (or covenants, as applicable) would be reasonably apparent to a reasonable person who has read that reference. 

(b) In no event shall any predictive, cautionary or forward-looking statements contained in any part of any Company SEC Document entitled
“Risk Factors” or containing a description or explanation of “Forward-Looking Statements” be deemed to be an exception to (or a disclosure for purposes of) any representations and warranties of the Company contained in this
Agreement. 
 Section 11.06. Binding Effect; Benefit; Assignment. (a) The provisions of this Agreement shall be binding
upon and, except as provided in Section 7.02, shall inure to the benefit of the parties hereto and their respective successors and assigns. No provision of this Agreement is intended to confer any rights, benefits, remedies, obligations or
liabilities hereunder upon any Person other than the parties hereto and their respective successors and assigns, other than (i) as provided in Section 7.02 and (ii) at and after the Effective Time, the rights of the holders of shares
of Company Common Stock to receive the Merger Consideration in accordance with the terms and conditions of this Agreement. 
 (b) No party
may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of each other party hereto, except that Parent or Merger Subsidiary may transfer or assign its rights and obligations under this
Agreement, in whole or from time to time in part, to (i) one or more of its Affiliates at any time and (ii) after the Effective Time, to any Person; provided that such transfer or assignment (x) shall not relieve Parent or Merger
Subsidiary of its obligations hereunder, alter or change any obligation of any other party hereto or due to Parent or Merger Subsidiary and (y) shall not be permitted if it would result in any increase in withholding under Section 2.07.

 Section 11.07. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware, without regard to the conflicts of law rules of such state. 
 Section 11.08. Jurisdiction. The parties hereto agree
that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby (whether brought by any party or any of its controlled
Affiliates or against any party or any of its controlled Affiliates) shall be brought in the Delaware Chancery Court or, if such court shall not have jurisdiction, any federal court located in the State of Delaware or other Delaware state court, and
each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any
objection that it may now or hereafter have to the laying of the venue of any such suit, action or 

  
 80 

 
proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be
served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 11.01 shall be deemed
effective service of process on such party. 
 Section 11.09. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

Section 11.10. Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and may be signed electronically by delivery of signatures in .pdf or similar format. This Agreement shall become effective when each party hereto
shall have received a counterpart hereof signed by all of the other parties hereto. Until and unless each party has received a counterpart hereof signed by all of the other parties hereto, this Agreement shall have no effect and no party shall have
any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). 
 Section 11.11.
Entire Agreement. This Agreement and the Confidentiality Agreement constitute the entire agreement between the parties with respect to the subject matter thereof and supersede all prior agreements and understandings, both oral and written,
between the parties with respect to the subject matter thereof. 
 Section 11.12. Severability. If any term, provision, covenant
or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a
determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as
originally contemplated to the fullest extent possible. 
 Section 11.13. Guarantee. (a) Parent Holdco irrevocably and
unconditionally guarantees the due and punctual performance of the obligations of 

  
 81 

 
Parent, Merger Subsidiary, the Surviving Corporation and their permitted assigns hereunder (the “Guaranteed Obligations”) subject to the conditions hereunder. If, for any reason
whatsoever, Parent, Merger Subsidiary the Surviving Corporation or any of their permitted assigns shall fail or be unable to duly, punctually and fully pay or perform the Guaranteed Obligations, Parent Holdco will forthwith pay or perform, or cause
to be paid or performed, the Guaranteed Obligations. Parent Holdco hereby waives diligence, presentment, demand of payment, filing objections with a court, any right to require proceeding first against Parent, Merger Subsidiary the Surviving
Corporation or any such permitted assign, any right to require the prior disposition of the assets of Parent, Merger Subsidiary or any such permitted assign to meet their respective obligations, notice, protest and all demands whatsoever. This is a
guarantee of payment and performance and not collectability. 
 (b) Parent Holdco is a legal entity duly organized, validly existing and (to
the extent applicable) in good standing under the laws of its jurisdiction of organization. Parent Holdco has all requisite corporate power and authority and has taken all corporate action necessary in order to execute, deliver and perform its
obligations under this Agreement. This Agreement has been duly approved, executed and delivered by Parent Holdco and is a valid and binding agreement of Parent Holdco, enforceable against it in accordance with its terms, except as such enforcement
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally or by principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).
Parent Holdco owns directly one hundred percent (100%) of the issued and outstanding capital stock of Parent. 
 (c) Parent Holdco
shall not transfer or assign, in whole or in part, any of its obligations under this Section 11.13. 
 Section 11.14. Specific
Performance. The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that, prior to the termination hereof in accordance with Article 10, the
parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in any federal court located in the State of Delaware or any Delaware state
court, in addition to any other remedy to which they are entitled at law or in equity. 
 [The remainder of this page has been
intentionally left blank] 

  
 82 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the date set forth on the cover page of this Agreement. 
  

			
	ARTHROCARE CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:
	
	SMITH & NEPHEW, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	ROSEBUD ACQUISITION CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:
	
	SMITH & NEPHEW PLC
		
	By:	 	  

		 	Name:
		 	Title:

  
 83

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