Document:

exv10w1

 

Exhibit 10.1

EXECUTION VERSION

NuVasive, Inc.

2.25% Convertible Senior Notes Due 2013

Purchase Agreement

March 3, 2008

Goldman, Sachs & Co.,

J.P. Morgan Securities Inc.

     As representatives of the several Purchasers

     named in Schedule I hereto,

c/o Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

     and

c/o J.P. Morgan Securities Inc

277 Park Avenue

New York, New York 10172

Ladies and Gentlemen:

NuVasive, Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and
conditions stated herein, to issue and sell to the Purchasers named in Schedule I hereto (the
“Purchasers”), for whom you are acting as representatives (the “Representatives”), an aggregate of
$200,000,000 principal amount of the 2.25% Convertible Senior Notes due 2013 (the “Firm
Securities”), convertible into shares of common stock of the Company, par value $0.001 per share
(“Stock”), and, at the election of the Purchasers, up to an aggregate of $30,000,000 additional
principal amount of 2.25% Convertible Senior Notes due 2013 (the “Optional Securities”) (the Firm
Securities and the Optional Securities which the Purchasers elect to purchase pursuant to Section 2
hereof are herein collectively called the “Securities”).

	1.	 	The Company represents and warrants to, and agrees with, each of the Purchasers that:

	 	(a)	 	A preliminary offering memorandum, dated March 3, 2008 (the “Preliminary Offering
Memorandum”) and an offering memorandum, dated March 3, 2008 (the “Offering Memorandum”),
have been prepared in connection with the offering of the Securities and shares of the
Stock issuable upon conversion thereof. The Preliminary Offering Memorandum, as amended and
supplemented immediately prior to the Applicable Time (as defined in Section 1(b)), is
hereinafter referred to as the “Pricing Memorandum”. Any reference to the Preliminary
Offering

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	 	 	 	Memorandum, the Pricing Memorandum or the Offering Memorandum shall be deemed to refer to
and include the Company’s most recent Annual Report on Form 10-K and all subsequent
documents filed with the Securities and Exchange Commission (the “Commission”) pursuant to
Section 13(a), 13(c) or 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) on or prior to the date of such memorandum (to the extent incorporated by
reference therein) and any reference to the Preliminary Offering Memorandum or the
Offering Memorandum, as the case may be, as amended or supplemented, as of any specified
date, shall be deemed to include (i) any documents filed with the Commission pursuant to
Section 13(a), 13(c) or 15(d) of the Exchange Act after the date of the Preliminary
Offering Memorandum or the Offering Memorandum, as the case may be, and prior to such
specified date (to the extent incorporated by reference therein) and (ii) any Additional
Issuer Information (as defined in Section 5(f)) furnished by the Company prior to the
completion of the distribution of the Securities; and all documents filed under the
Exchange Act and so deemed to be included in the Preliminary Offering Memorandum, the
Pricing Memorandum or the Offering Memorandum, as the case may be, or any amendment or
supplement thereto are hereinafter called the “Exchange Act Reports”. The Exchange Act
Reports, when they were or are filed (or in the alternative, to the extent that such
documents were thereafter amended, when such amendment was filed) with the Commission,
conformed or will conform in all material respects to the applicable requirements of the
Exchange Act and the applicable rules and regulations of the Commission thereunder; and no
such documents were filed with the Commission since the Commission’s close of business on
the business day immediately prior to the date of this Agreement and prior to the
execution of this Agreement, except as set forth on Schedule II(a) hereof. The Preliminary
Offering Memorandum and any amendments or supplements thereto or the Offering Memorandum
and any amendments or supplements thereto and the Exchange Act Reports when filed with the
Commission (or in the alternative, to the extent such documents were thereafter amended,
when such amendment was filed with the Commission) did not and will not, as of their
respective dates, contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that this
representation and warranty shall not apply to any statements or omissions made in
reliance upon and in conformity with information furnished in writing to the Company by a
Purchaser through the Representatives. expressly for use therein;
	 
	 	(b)	 	For the purposes of this Agreement, the “Applicable Time” is 4:00 pm (Eastern time) on
the date of this Agreement; the Pricing Memorandum as supplemented by the information set
forth in Schedule III hereto, taken together (collectively, the “Pricing Disclosure
Package”) as of the Applicable Time, did not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; and each
Company Supplemental Disclosure Document (as defined in Section 6(a)(ii)) listed on
Schedule II(b) hereto does not conflict with the information contained in the Pricing
Memorandum or the Offering Memorandum and each such Company Supplemental Disclosure
Document, as supplemented by and taken together with the Pricing Disclosure Package as of
the Applicable Time, did not include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading; provided, however, that this
representation and
warranty shall not apply to statements or omissions made in a Company

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	 	 	 	Supplemental
Disclosure Document in reliance upon and in conformity with information furnished in
writing to the Company by a Purchaser through the Representatives expressly for use
therein;
	 
	 	(c)	 	Neither the Company nor any of its subsidiaries has sustained since the date of the
latest audited financial statements included in the Pricing Memorandum any material loss or
interference with its business from fire, explosion, flood or other calamity, whether or
not covered by insurance, or from any labor dispute or court or governmental action, order
or decree, otherwise than as set forth or contemplated in the Pricing Memorandum; and,
since the respective dates as of which information is given in the Pricing Memorandum,
there has not been any change in the capital stock (except for changes made in the ordinary
course of business consistent with past practice pursuant to the Company’s equity plans in
existence prior to the date of this Agreement, and other than the exercise of options and
warrants outstanding prior to the date of this Agreement) or long-term debt of the Company
or any of its subsidiaries, or any change, or development involving a prospective change,
that has or would reasonably be expected to have a material adverse effect on the general
affairs, management, financial position, stockholders’ equity or results of operations of
the Company and its subsidiaries, taken together as a whole (a “Material Adverse Effect”),
otherwise than as set forth or contemplated in the Pricing Memorandum;
	 
	 	(d)	 	The Company and its subsidiaries have good and marketable title in fee simple to all
real property and good and marketable title to all personal property owned by them, in each
case free and clear of all liens, encumbrances and defects except such as are described in
the Pricing Memorandum or such as do not materially affect the value of such property and
do not materially interfere with the use made and proposed to be made of such property by
the Company and its subsidiaries; and any real property and buildings held under lease by
the Company and its subsidiaries are held by them under valid, subsisting and enforceable
leases with such exceptions as are not material and do not materially interfere with the
use made and proposed to be made of such property and buildings by the Company and its
subsidiaries;

	 	(e)	 	The Company has been duly incorporated and is validly existing as a corporation in good
standing under the laws of the State of Delaware, with power and authority (corporate and
other) to own its properties and conduct its business as described in the Pricing
Memorandum, and has been duly qualified as a foreign corporation for the transaction of
business and is in good standing under the laws of each other jurisdiction in which it owns
or leases properties or conducts any business so as to require such qualification, or is
subject to no material liability or disability by reason of the failure to be so qualified
in any such jurisdiction; and each subsidiary of the Company has been duly incorporated or
organized and is validly existing as a corporation in good standing under the laws of its
jurisdiction of incorporation;
	 
	 	(f)	 	The Company has an authorized capitalization as set forth in the Pricing Memorandum,
and all of the issued shares of capital stock of the Company have been duly and validly
authorized and issued and are fully paid and non-assessable; and all of the issued shares
of capital stock of each subsidiary of the Company have been duly and validly authorized
and issued, are fully paid and non-assessable and are owned directly or indirectly by the
Company, free and clear of all liens, encumbrances, equities or claims;

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	 	(g)	 	This Agreement has been duly authorized, executed and delivered by the Company;
	 
	 	(h)	 	The Securities have been duly authorized and, when issued and delivered pursuant to
this Agreement and authenticated by the Trustee (as defined below), will have been duly
executed, authenticated, issued and delivered and will constitute valid and legally binding
obligations of the Company entitled to the benefits provided by the indenture to be dated
as of March 7, 2008 (the “Indenture”) between the Company and U.S. Bank National
Association, as Trustee (the “Trustee”), under which they are to be issued, which will be
substantially in the form previously delivered to you; the Indenture has been duly
authorized and, when executed and delivered by the Company and the Trustee, the Indenture
will constitute a valid and legally binding instrument of the Company, enforceable against
the Company in accordance with its terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to or affecting
creditors’ rights and to general equity principles; and the Securities and the Indenture
will conform to the descriptions thereof in the Pricing Disclosure Package and the Offering
Memorandum and will be in substantially the form previously delivered to you;
	 
	 	(i)	 	The Registration Rights Agreement to be dated as of March 7, 2008 (the “Registration
Rights Agreement”), which will be substantially in the form previously delivered to you,
has been duly authorized, and as of the Time of Delivery (as defined herein), will have
been duly executed and delivered by the Company, and will constitute a valid and legally
binding instrument enforceable against the Company in accordance with its terms, subject,
as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and to general equity principles;
and the Registration Rights Agreement will conform to the descriptions thereof in the
Pricing Disclosure Package and the Offering Memorandum;
	 
	 	(j)	 	Upon issuance and delivery of the Securities in accordance with this Agreement and the
Indenture, the Securities will be convertible at the option of the holder thereof into shares of Stock in accordance the terms of the Securities; the Stock reserved for issuance
upon conversion of the Securities has been duly authorized and reserved and, when issued
upon conversion of the Securities in accordance with the terms of the Securities and the
Indenture, will be validly issued, fully paid and non assessable, and the issuance of such
Stock will not be subject to any preemptive or similar rights; and Stock issuable upon
conversion of the Securities will conform to the description of the Stock contained in the
Pricing Memorandum and the Offering Memorandum;
	 
	 	(k)	 	None of the transactions contemplated by this Agreement (including, without limitation,
the use of the proceeds from the sale of the Securities) will violate or result in a
violation of Section 7 of the Exchange Act, or any regulation promulgated thereunder,
including, without limitation, Regulations T, U, and X of the Board of Governors of the
Federal Reserve System;
	 
	 	(l)	 	Prior to the date hereof, neither the Company nor any of its affiliates has taken any
action which is designed to or which has constituted or which might have been expected to
cause or result in stabilization or manipulation of the price of any security of the
Company in connection with the offering of the Securities;

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	 	(m)	 	The issue and sale of the Securities and the compliance by the Company with all of the
provisions of the Securities, the Indenture, the Registration Rights Agreement and this
Agreement and the consummation of the transactions herein and therein contemplated will not
conflict with or result in a breach or violation of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which the Company or any of its subsidiaries is a party or by
which the Company or any of its subsidiaries is bound or to which any of the property or
assets of the Company or any of its subsidiaries is subject, other than any conflict,
breach violation or default that would not, individually or in the aggregate, have a
Material Adverse Effect, nor will such action result in any violation of the provisions of
the Certificate of Incorporation or By-laws, each as amended through the date of this
Agreement, of the Company or any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any of its subsidiaries
or any of their properties; and no consent, approval, authorization, order, registration or
qualification of or with any such court or governmental agency or body is required for the
issue and sale of the Securities or the consummation by the Company of the transactions
contemplated by this Agreement, the Indenture or the Registration Rights Agreement, except
for the filing of a registration statement by the Company with the Commission pursuant to
the Securities Act of 1933, as amended (the “Act”) pursuant to the Registration Rights
Agreement, the qualification of the Indenture under the Trust Indenture Act in connection
with the filing of such registration statement and such consents, approvals,
authorizations, registrations or qualifications as may be required under state securities
or Blue Sky laws in connection with the purchase and distribution of the Securities by the
Purchasers;
	 
	 	(n)	 	Neither the Company nor any of its subsidiaries is (i) in violation of its Certificate
of Incorporation or By-laws, each as amended through the date of this Agreement, or (ii) in
default in the performance or observance of any obligation, covenant or condition contained
in any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or
instrument to which it is a party or by which it or any of its properties may be bound,
other than, in the case of clause (ii) of this paragraph, any such default that would not
have a Material Adverse Effect;
	 
	 	(o)	 	The Company does not have any “significant subsidiaries” as such term is defined in
Rule 1-02 of Regulation S-X of the Act;
	 
	 	(p)	 	Neither the Company nor any of its affiliates does business with the government of Cuba
or with any person or affiliate located in Cuba within the meaning of Section 517.075,
Florida Statutes;
	 
	 	(q)	 	The Company and its subsidiaries are in compliance in all material respects with all
applicable rules, regulations and policies of the Food and Drug Administration of the U.S.
Department of Health and Human Services or any committee thereof (the “FDA”) and any other
U.S. or foreign government or drug or medical device regulatory agency which has authority
over the Company or any of its subsidiaries;
	 
	 	(r)	 	Neither the Company, nor any employee of the Company, nor, any person retained by and
acting on behalf of the Company, has made any false statements or material omissions in any
submission to the FDA or any analogous foreign governmental authority;

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	 	(s)	 	The Company has not received any written correspondence from the FDA, or any other
analogous foreign governmental authority indicating that its products are unsafe or
ineffective for their intended uses, or that the FDA or any analogous foreign governmental
authority will not grant clearance or approval to market its products and the Company is
not aware of any set of facts as of the date of this Agreement which would require the
Company to recall, to issue a safety alert or to take a repair/replace/refund action in the
U.S. or any similar action in a foreign jurisdiction with respect to any of its products or
to cease further distribution or marketing of commercially available products pending
further approval, clearance, or authorization from the FDA or an analogous foreign
governmental authority or to change the device classification or statutory product
categorization of any product or to terminate or suspend any clinical testing of any
product and the Company is not currently conducting any recall or repair/replace/refund
action and is not the subject of any warning letter or untitled letter or any criminal,
civil money penalty, injunction or seizure proceeding due to noncompliance with any FDA
requirement, or, to the knowledge of the Company, subject to any non-facility investigation
relating to its products by the FDA;
	 
	 	(t)	 	No employee or agent of the Company, nor any officer or director of the Company, nor
any other person acting on behalf of, nor any other person directly or indirectly owned or
controlled by, the Company, acting alone or together, has (i) received, directly or
indirectly, any rebates, payments, commissions, promotional allowances or other economic
benefits, regardless of their nature or type, from any customer, supplier, trading company,
shipping company, governmental employee or other person with whom the Company has done
business, directly or indirectly, or (ii) directly or indirectly, given or agreed to give
any gift or similar benefit to any customer, supplier, trading company, shipping company,
governmental employee or other person who is or may be in a position to help or hinder the
Company (or assist the Company in connection with any actual or proposed transaction)
which, in the case of clauses (i) or (ii), would subject the Company to any damage or
penalty in any civil, criminal or governmental litigation or proceeding;
	 
	 	(u)	 	The Company has not unlawfully disseminated information or engaged in any promotional
activities about the use of its products which deviates in any material respect from the
FDA-cleared or approved indications for use of such products;
	 
	 	(v)	 	The statements set forth in the Pricing Memorandum and the Offering Memorandum under
the caption “Description of Notes” and “Description of Capital Stock”, insofar as they
purport to constitute a summary of the terms of the Securities and the Stock, and under the
captions “Risk Factors—Risks Related to Our Business and Industry—If we fail to obtain,
or experience significant delays in obtaining, FDA clearances or approvals for our future
products or product enhancements, our ability to commercially distribute and market our
products could suffer”, “—If clinical trials of our current or future product candidates
do not produce results necessary to support regulatory approval in the United States or
elsewhere, we will be unable to commercialize these products” and “—Modifications to our
marketed products may require new 510(k) clearances or premarket approvals, or may require
us to cease marketing or recall the modified products until clearances are obtained”, and
under the captions “Material U.S. Federal Income Tax Considerations” and “Plan of
Distribution”, insofar as they purport to describe the provisions of the laws and documents
referred to therein, are accurate and fair summaries;

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	 	(w)	 	No forward-looking statement (within the meaning of Section 27A of the Act and Section
21E of the Exchange Act) contained in any of the Pricing Disclosure Package and the
Offering Memorandum has been made or reaffirmed without a reasonable basis or has been
disclosed other than in good faith;
	 
	 	(x)	 	Nothing has come to the attention of the Company that has caused the Company to believe
that the statistical and market-related data included or incorporated by reference in each
of the Pricing Disclosure Package and the Offering Memorandum is not based on or derived
from sources that are reliable and accurate in all material respects;
	 
	 	(y)	 	Other than as set forth in the Pricing Memorandum, there are no legal or governmental
proceedings pending to which the Company or any of its subsidiaries is a party or of which
any property of the Company or any of its subsidiaries is the subject which, if determined
adversely to the Company or any of its subsidiaries, would, individually or in the
aggregate have a Material Adverse Effect; and, to the best of the Company’s knowledge, no
such proceedings are threatened or contemplated by governmental authorities or threatened
by others;
	 
	 	(z)	 	When the Securities are issued and delivered pursuant to this Agreement, the Securities
will not be of the same class (within the meaning of Rule 144A under the Act) as securities
which are listed on a national securities exchange registered under Section 6 of the
Exchange Act or quoted in a U.S. automated inter-dealer quotation system;
	 
	 	(aa)	 	The Company is subject to Section 13 or 15(d) of the Exchange Act;
	 
	 	(bb)	 	The Company is not, and after giving effect to the issuance and sale of the Securities
and the application of the proceeds thereof, will not be an “investment company”, as such
term is defined in the United States Investment Company Act of 1940, as amended (the
“Investment Company Act”);
	 
	 	(cc)	 	Neither the Company nor any person acting on its or their behalf (other than the
Purchasers, as to which no representation or warranty is made) has offered or sold the
Securities by means of any general solicitation or general advertising within the meaning
of Rule 502(c) under the Act;
	 
	 	(dd)	 	Within the preceding six months, neither the Company nor any other person acting on
behalf of the Company has offered or sold to any person any Securities, or any securities
of the same or a similar class as the Securities, other than Securities offered or sold to
the Purchasers hereunder. The Company will take reasonable precautions designed to insure
that any offer or sale, direct or indirect, in the United States or to any U.S. person (as
defined in Rule 902 under the Act) of any Securities or any substantially similar security
issued by the Company, within six months subsequent to the date on which the distribution
of the Securities has been completed (as notified to the Company by the Representatives),
is made under restrictions and other circumstances reasonably designed not to affect the
status of the offer and sale of the Securities in the United States and to U.S. persons
contemplated by this Agreement as transactions exempt from the registration provisions of
the Act;

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	 	(ee)	 	Assuming the accuracy of the representations and warranties of the Purchasers contained
in Section 3 and their compliance with their agreements set forth therein, it is not
necessary, in connection with the issuance and sale of the Securities to the Purchasers and
the offer, resale and delivery of the Securities by the Purchasers in the manner
contemplated by this Agreement, the Pricing Disclosure Package and the Offering Memorandum,
to register the Securities under the Act or to qualify the Indenture under the Trust
Indenture Act;
	 
	 	(ff)	 	The Company maintains a system of internal control over financial reporting (as such
term is defined in Rule 13a-15(f) of the Exchange Act) that complies with the requirements
of the Exchange Act and has been designed by the Company’s principal executive officer and
principal financial officer, or under their supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting
principles. Except as disclosed in the Pricing Memorandum, the Company’s internal control
over financial reporting is effective and the Company is not aware of any material
weaknesses in its internal control over financial reporting;
	 
	 	(gg)	 	Since the date of the latest audited financial statements included or incorporated by
reference in the Pricing Memorandum, there has been no change in the Company’s internal
control over financial reporting that has materially affected, or is reasonably likely to
materially affect, the Company’s internal control over financial reporting;
	 
	 	(hh)	 	The Company maintains disclosure controls and procedures (as such term is defined in
Rule 13a-15(e) of the Exchange Act) that company with the requirements of the Exchange Act
and have been designed to ensure that material information relating to the Company and its
subsidiaries is made known to the Company’s principal executive officer and principal
financial officer by others within those entities; and such disclosure controls and
procedures are effective;
	 
	 	(ii)	 	Ernst & Young LLP, which has audited certain financial statements of the Company and
its subsidiaries is an independent registered public accounting firm as required by the Act
and the rules and regulations of the Commission thereunder;
	 
	 	(jj)	 	(i) The Company and its subsidiaries (x) are, and at all prior times were, in material
compliance with any and all applicable federal, state, local and foreign laws, rules,
regulations, requirements, decisions and orders relating to the protection of human health
or safety, the environment, natural resources, hazardous or toxic substances or wastes,
pollutants or contaminants (collectively, “Environmental Laws”), (y) have received and are
in material compliance with all permits, licenses, certificates or other authorizations or
approvals required of them under applicable Environmental Laws to conduct their respective
businesses, and (z) have not received notice of any actual or potential liability under or
relating to any Environmental Laws, including for the investigation or remediation of any
disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants,
and have no knowledge of any event or condition that would reasonably be expected to result
in any such notice, and (ii) there are no material costs or liabilities associated with
Environmental Laws of or relating to the Company or its subsidiaries; and (iii) except as
described in each of the Pricing Disclosure Package and the Offering Memorandum, (x) there
are no proceedings that are pending, or that are known to be contemplated, against

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	 	 	 	the
Company or any of its subsidiaries under any Environmental Laws in which a governmental
entity is also a party, other than such proceedings regarding which it is reasonably
believed no monetary sanctions of $100,000 or more will be imposed, (y) the Company and
its subsidiaries are not aware of any issues regarding compliance with Environmental Laws,
or liabilities or other obligations under Environmental Laws or concerning hazardous or
toxic substances or wastes, pollutants or contaminants, that could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, and (z) none of the
Company and its subsidiaries anticipates material capital expenditures relating to any
Environmental Laws;
	 
	 	(kk)	 	(i) The Company and its subsidiaries own or possess all patents, patent applications,
inventions, trademarks, service marks, trade names, trademark registrations, service mark
registrations, domain names, copyrights, licenses, know-how (including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information, systems or
procedures) and other intellectual property necessary for the conduct of their respective
businesses as currently being conducted or proposed to be conducted with respect to the
Company’s product in clinical trial as described in Part 1, Item 1 of the Company’s 2007
Form 10-K under the caption “Development Projects” (“Intellectual Property”); and to the
knowledge of the Company, the conduct of such business will not conflict in any material
respect with any valid and enforceable rights of others. None of the patents owned or
licensed by the Company that are material to the Company’s and its subsidiaries’ respective
businesses is invalid or unenforceable; and the Company is not aware of any basis for a
finding that any of the Intellectual Property is invalid or unenforceable. All
Intellectual Property owned by the Company or its subsidiaries is free and clear of all
liens, encumbrances, defects or other restrictions. The Company and its subsidiaries have
taken commercially reasonable actions to maintain and protect all registered Intellectual
Property owned or controlled by the Company or its subsidiaries, including payment of
applicable maintenance fees, filing of applicable statements of use, timely response to
office actions, and disclosure of any required information.

	 	(ii)	 	To the Company’s knowledge, the Company and its subsidiaries are in material
compliance with all applicable federal, state, local and foreign laws, rules, regulations,
requirements, decisions and orders relating to the Intellectual Property owned by the
Company and its subsidiaries.
	 
	 	(iii)	 	Neither the Company nor any of its subsidiaries is (A) subject to any judgment,
order, writ, injunction or decree of any court or any federal, state, local, foreign or
other governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, or any arbitrator, or (B) has entered into or is a party to any
contract, in each case, which materially restricts or impairs its use of any Intellectual
Property, except as set forth in the Offering Memorandum.
	 
	 	(iv)	 	The Company and its subsidiaries have taken all commercially reasonable actions to
protect their rights in confidential information and trade secrets, protect any
confidential information provided to them by any other person, and obtain ownership of all
works of authorship and inventions made by its employees, consultants and contractors and
which relate to the Company’s business. All founders, key employees and any other
employees
involved in the development of software for the Company have signed confidentiality and

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	 	 	 	invention assignment agreements with the Company, except for such failure as would not
have a Material Adverse Effect.
	 
	 	(ll)	 	The Company and its subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as, in the Company’s
reasonable judgment, are prudent and customary in the business in which they are engaged;
neither the Company nor any of its subsidiaries has been refused any insurance coverage
sought or applied for; and neither the Company nor any of its subsidiaries has any reason
to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be
necessary to continue its business;
	 
	 	(mm)	 	The Company and its subsidiaries possess all certificates, authorizations and permits
issued by the appropriate federal, state or foreign regulatory authorities necessary to
conduct their respective businesses, except for such failure as would not have a Material
Adverse Effect, and neither the Company nor any of its subsidiaries has received any notice
of proceedings relating to the revocation or modification of any such certificate,
authorization or permit;
	 
	 	(nn)	 	Except as described in each of the Pricing Disclosure Package and the Offering
Memorandum, with respect to the stock options (the “Stock Options”) granted pursuant to the
stock-based compensation plans of the Company and its subsidiaries (the “Company Stock
Plans”), (i) each Stock Option designated by the Company at the time of grant as an
“incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”) so qualifies, (ii) each grant of a Stock Option was duly authorized no later
than the date on which the grant of such Stock Option was by its terms to be effective (the
“Grant Date”) by all necessary corporate action, including, as applicable, approval by the
board of directors of the Company (or a duly constituted and authorized committee or
representative thereof) and any required stockholder approval by the necessary number of
votes or written consents, and the award agreement governing such grant (if any) was duly
executed and delivered by each party thereto, (iii) each such grant was made in accordance
with the material terms of the Company Stock Plans, the Exchange Act and all other
applicable laws and regulatory rules or requirements, including the rules of the NASDAQ
Global Select Market (“NASDAQ”) and any other exchange on which Company securities are
traded, (iv) the per share exercise price of each Stock Option was equal to or greater than
the fair market value of a share of Common Stock on the applicable Grant Date since the
date the Company became subject to Section 13 or 15(d) of the Exchange Act and (v) each
such grant was properly accounted for in accordance with GAAP in the financial statements
(including the related notes) of the Company and disclosed in the Company’s filings with
the Commission in accordance with the Exchange Act and all other applicable laws. The
Company has not knowingly granted, and there is no and has been no policy or practice of
the Company of granting, Stock Options prior to, or otherwise coordinating the grant of
Stock Options for purposes of improperly manipulating the grantee’s strike price in
connection with, the release or other public announcement of material information regarding
the Company or its subsidiaries or their results of operations or prospects;
	 
	 	(oo)	 	No relationship, direct or indirect, exists between or among the Company or any of its
subsidiaries, on the one hand, and the directors, officers, stockholders or other
affiliates of
the Company or any of its subsidiaries, on the other, that would be required by the Act to
be

10

 

	 	 	 	described in a registration statement to be filed with the Commission and that is not
so described in each of the Pricing Disclosure Package and the Offering Memorandum;
	 
	 	(pp)	 	The Company and its subsidiaries have paid all federal, state, local and foreign taxes
and filed all tax returns required to be filed through the date hereof, or filed extensions
as permitted by law with adequate reserves therefor on the Company’s balance sheet; and
except as otherwise disclosed in each of the Pricing Disclosure Package and the Offering
Memorandum, there is no tax deficiency that has been, or could reasonably be expected to
be, asserted against the Company or any of its subsidiaries or any of their respective
properties or assets;
	 
	 	(qq)	 	No labor disturbance by or dispute with employees of the Company or any of its
subsidiaries exists or, to the knowledge of the Company, is contemplated or threatened and
the Company is not aware of any existing or imminent labor disturbance by, or dispute with,
the employees of any of the Company’s or any of the Company’s subsidiaries’ principal
suppliers, contractors or customers;
	 
	 	(rr)	 	(i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), for which the Company or any
member of its “Controlled Group” (defined as any organization which is a member of a
controlled group of corporations within the meaning of Section 414 of the Internal Revenue
Code of 1986, as amended (the “Code”)) would have any liability (each, a “Plan”) has been
maintained in compliance with its terms and the requirements of any applicable statutes,
orders, rules and regulations, including but not limited to ERISA and the Code; (ii) no
prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the
Code, has occurred with respect to any Plan excluding transactions effected pursuant to a
statutory or administrative exemption; (iii) for each Plan that is subject to the funding
rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding
deficiency” as defined in Section 412 of the Code, whether or not waived, has occurred or
is reasonably expected to occur; (iv) the fair market value of the assets of each Plan
exceeds the present value of all benefits accrued under such Plan (determined based on
those assumptions used to fund such Plan); (v) no “reportable event” (within the meaning of
Section 4043(c) of ERISA) has occurred or is reasonably expected to occur; and (vi) neither
the Company nor any member of the Controlled Group has incurred, nor reasonably expects to
incur, any liability under Title IV of ERISA (other than contributions to the Plan or
premiums to the PBGC, in the ordinary course and without default) in respect of a Plan
(including a “multiemployer plan”, within the meaning of Section 4001(a)(3) of ERISA),
except for any failure, violation or default that would not, individually or in the
aggregate, have a Material Adverse Effect.
	 
	 	(ss)	 	Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company,
any director, officer, agent, employee or other person associated with or acting on behalf
of the Company or any of its subsidiaries has (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity;
(ii) made any direct or indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; (iii) violated or is in violation of any
provision of the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate,
payoff, influence payment, kickback or other unlawful payment;

11

 

	 	(tt)	 	The operations of the Company and its subsidiaries are and have been conducted at all
times in compliance with applicable financial recordkeeping and reporting requirements of
the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or enforced by
any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or
proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of its subsidiaries with respect to the Money
Laundering Laws is pending or, to the best knowledge of the Company, threatened;
	 
	 	(uu)	 	None of the Company, any of its subsidiaries or, to the knowledge of the Company, any
director, officer, agent, employee or affiliate of the Company or any of its subsidiaries
is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Department of the Treasury (“OFAC”); and the Company will not directly
or indirectly use the proceeds of the offering of the Securities hereunder, or lend,
contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other person or entity, for the purpose of financing the activities of any
person currently subject to any U.S. sanctions administered by OFAC;
	 
	 	(vv)	 	No subsidiary of the Company is currently prohibited, directly or indirectly, under any
agreement or other instrument to which it is a party or is subject, from paying any
dividends to the Company, from making any other distribution on such subsidiary’s capital
stock, from repaying to the Company any loans or advances to such subsidiary from the
Company or from transferring any of such subsidiary’s properties or assets to the Company
or any other subsidiary of the Company;
	 
	 	(ww)	 	Neither the Company nor any of its subsidiaries is a party to any contract, agreement
or understanding with any person (other than this Agreement) that would give rise to a
valid claim against any of them or any Purchaser for a brokerage commission, finder’s fee
or like payment in connection with the offering and sale of the Securities; and
	 
	 	(xx)	 	Except as described in the Pricing Memorandum, there is and has been no failure on the
part of the Company or any of the Company’s directors or officers, in their capacities as
such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the rules and
regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”), including
Section 402 related to loans and Sections 302 and 906 related to certifications.

	2.	 	Subject to the terms and conditions herein set forth, (a) the Company agrees to issue and
sell to each of the Purchasers, and each of the Purchasers agrees, severally and not jointly,
to purchase from the Company, at a purchase price of 97% of the principal amount thereof, plus
accrued interest from March 7, 2008 to the Time of Delivery hereunder, if any, the principal
amount of Securities set forth opposite the name of such Purchaser in Schedule I hereto, and
(b) in the event and to the extent that the Purchasers shall exercise the election to purchase
Optional Securities as provided below, the Company agrees to issue and sell to each of the
Purchasers, and each of the Purchasers agrees, severally and not jointly, to purchase from the
Company, at the same purchase price set forth in clause (a) of this Section 2, that portion of
the aggregate principal amount of the Optional Securities as to which such election shall have
been exercised (to be adjusted by you so
as to eliminate fractions of $1,000), determined by multiplying such aggregate

12

 

	 	 	principal amount
of Optional Securities by a fraction, the numerator of which is the maximum aggregate principal
amount of Optional Securities which such Purchaser is entitled to purchase as set forth opposite
the name of such Purchaser in Schedule I hereto and the denominator of which is the maximum
aggregate principal amount of Optional Securities which all of the Purchasers are entitled to
purchase hereunder.
	 
	 	 	The Company hereby grants to the Purchasers the right to purchase at their election up to
$30,000,000 aggregate principal amount of Optional Securities, at the purchase price set forth
in clause (a) of the first paragraph of this Section 2 for the sole purpose of covering sales of
securities in excess of the aggregate principal amount of Firm Securities. Any such election to
purchase Optional Securities may be exercised by written notice from the Representatives to the
Company, given within a period of 30 calendar days after the date of this Agreement, setting
forth the aggregate principal amount of Optional Securities to be purchased and the date on
which such Optional Securities are to be delivered, as determined by the Representatives but in
no event earlier than the First Time of Delivery (as defined in Section (4) hereof) or, unless
you and the Company otherwise agree in writing, earlier than one or later than 10 business days
after the date of such notice.
	 
	3.	 	Upon the authorization by you of the release of the Securities, the several Purchasers
propose to offer the Securities for sale upon the terms and conditions set forth in this
Agreement and the Offering Memorandum and each Purchaser hereby represents and warrants to,
and agrees with the Company that:

	 	(a)	 	It will offer and sell the Securities only to persons who it reasonably believes are
“qualified institutional buyers” (“QIBs”) within the meaning of Rule 144A under the Act in
transactions meeting the requirements of Rule 144A;
	 
	 	(b)	 	It is an Institutional Accredited Investor, within the meaning of Rule 501(a) under the
Act; and
	 
	 	(c)	 	It will not offer or sell the Securities by any form of general solicitation or general
advertising, including but not limited to the methods described in Rule 502(c) under the
Act.

	4.	 	(a) 	The Securities to be purchased by each Purchaser hereunder will be represented by one or
more definitive global Securities in book-entry form which will be deposited by or on behalf
of the Company with The Depository Trust Company (“DTC”) or its designated custodian. The
Company will deliver the Securities to Goldman, Sachs & Co., for the account of each
Purchaser, against payment by or on behalf of such Purchaser of the purchase price therefor by
wire transfer to the Company in Federal (same day) funds, by causing DTC to credit the
Securities to the account of Goldman, Sachs & Co. at DTC. The Company will cause the
certificates representing the Securities to be made available to the Representatives for
checking at least twenty-four hours prior to the Time of Delivery (as defined below) at the
office of Davis Polk & Wardwell, 1600 El Camino Real, Menlo Park, California 94025 (the
“Closing Location”). The time and date of such delivery and payment shall be, with respect to
the Firm Securities, 9:30 a.m., New York City time, on March 7, 2008 or such other time and
date as the Representatives and the Company may agree upon in writing, and with respect to the
Optional Securities, 9:30 a.m. New York City time, on the date specific by you in the written
notice given by you of the Purchasers’ election to purchase such Optional

13

 

	 	 	Securities, or such
other time and date as the Representatives and the Company may agree upon in writing. Such
time and date for
delivery of the Firm Securities are herein called the “First Time of Delivery”, such time
and date for delivery of the Optional Securities, if not the First Time of Delivery, are
herein called the “Second Time of Delivery”, and each such time and date for delivery are
herein called a “Time of Delivery”.

	 	(b)	 	The documents to be delivered at such Time of Delivery by or on behalf of the parties
hereto pursuant to Section 8 hereof, including the cross-receipt for the Securities and any
additional documents requested by the Purchasers pursuant to Section 8(l) hereof, will be
delivered at such time and date at the Closing Location, and the Securities will be
delivered at DTC (or its designated custodian), all at such Time of Delivery. A meeting
will be held at the Closing Location at 2:00 p.m., New York City time, on the New York
Business Day next preceding such Time of Delivery, at which meeting the final drafts of the
documents to be delivered pursuant to the preceding sentence will be available for review
by the parties hereto. For the purposes of this Section 4, “New York Business Day” shall
mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in New York are generally authorized or obligated by law or executive
order to close.

	5.	 	The Company agrees with each of the Purchasers:

	 	(a)	 	To prepare the Offering Memorandum in a form approved by you; to make no amendment or
any supplement to the Offering Memorandum which shall be disapproved by you promptly after
reasonable notice thereof; and to furnish you with copies thereof;
	 
	 	(b)	 	Promptly from time to time to take such action as you may reasonably request to qualify
the Securities and the shares of Stock issuable upon conversion of the Securities for
offering and sale under the securities laws of such jurisdictions as you may request and to
comply with such laws so as to permit the continuance of sales and dealings therein in such
jurisdictions for as long as may be necessary to complete the distribution of the
Securities, provided that in connection therewith the Company shall not be required to
qualify as a foreign corporation or to file a general consent to service of process in any
jurisdiction;
	 
	 	(c)	 	To furnish the Purchasers with written and electronic copies thereof in such quantities
as you may from time to time reasonably request, and if, at any time prior to the
expiration of nine months after the date of the Offering Memorandum, any event shall have
occurred as a result of which the Offering Memorandum as then amended or supplemented would
include an untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made when such Offering Memorandum is delivered, not misleading, or, if for any other
reason it shall be necessary or desirable during such same period to amend or supplement
the Offering Memorandum, to notify you and upon your request to prepare and furnish without
charge to each Purchaser and to any dealer in securities as many written and electronic
copies as you may from time to time reasonably request of an amended Offering Memorandum or
a supplement to the Offering Memorandum which will correct such statement or omission or
effect such compliance;
	 
	 	(d)	 	During the period beginning from the date hereof and continuing until the date 90 days
after the date of this Agreement, not to offer, sell contract to sell or otherwise dispose
of, except

14

 

	 	 	 	as provided hereunder, any securities of the Company that are substantially
similar to the
Securities or the Stock, including but not limited to any securities that are convertible
into or exchangeable for, or that represent the right to receive, Stock or any such
substantially similar securities (other than (i) pursuant to equity plans existing on, or
upon the conversion or exchange of convertible or exchangeable securities outstanding as
of, the date of this Agreement or (ii) the issuance of Stock having an aggregate value of
up to $50 million (valued at the time of entering into the definitive agreement) in
connection with the acquisition of a company, business or technology by the Company,
without the prior written consent of each of the Representatives;
	 
	 	(e)	 	The Company shall maintain a program under which its directors may sell shares of Stock
pursuant to the exemption under clause (iv) of the fourth paragraph of the lock-up letters
described in Section 8(l) hereof. Such program shall be reasonably designed and enforced
by the Company to ensure that such directors sell no more than an aggregated of 150,000
shares of Stock during the period that such lock-up letters are in effect. If at any time
the Company has knowledge that greater than 150,000 shares of Stock have been sold by such
directors in violation of such lock-up agreements or this Agreement, the Company shall
immediately notify the Representatives and take all reasonably necessary actions to prevent
any such further sales;
	 
	 	(f)	 	Not to be or become, at any time prior to the expiration of two years after the Time of
Delivery, an open-end investment company, unit investment trust, closed-end investment
company or face-amount certificate company that is or is required to be registered under
Section 8 of the Investment Company Act;
	 
	 	(g)	 	At any time during the two-year period after the Time of Delivery, when the Company is
not subject to Section 13 or 15(d) of the Exchange Act, for the benefit of holders from
time to time of Securities, to furnish at its expense, upon request, to holders of
Securities and prospective purchasers of securities information (the “Additional Issuer
Information”) satisfying the requirements of subsection (d)(4)(i) of Rule 144A under the
Act;
	 
	 	(h)	 	If requested by you, to use its best efforts to cause the Securities to be eligible for
the PORTAL trading system of the National Association of Securities Dealers, Inc.;
	 
	 	(i)	 	Except for such documents that are publicly available on EDGAR, to furnish to the
holders of the Securities as soon as practicable after the end of each fiscal year an
annual report (including a consolidated balance sheet and consolidated statements of
income, stockholders’ equity and cash flows of the Company and its consolidated
subsidiaries certified by independent public accountants) and, as soon as practicable after
the end of each of the first three quarters of each fiscal year (beginning with the fiscal
quarter ending after the date of the Offering Memorandum), to make available to its
stockholders consolidated summary financial information of the Company and its subsidiaries
for such quarter in reasonable detail;
	 
	 	(j)	 	During the period of one year after the First Time of Delivery, the Company will not,
and will not permit any of its “affiliates” (as defined in Rule 144 under the Act) to,
resell any of the Securities which constitute “restricted securities” under Rule 144 that
have been reacquired by any of them;

15

 

	 	(k)	 	To use the net proceeds received by it from the sale of the Securities pursuant to this
Agreement in the manner specified in the Pricing Memorandum under the caption “Use of
Proceeds”
	 
	 	(l)	 	To reserve and keep available at all times, free of preemptive rights, shares of Stock
for the purpose of enabling the Company to satisfy any obligations to issue shares of its
Stock upon conversion of the Securities; and
	 
	 	(m)	 	To use its best efforts to list, subject to notice of issuance, the shares of Stock
issuable upon conversion of the Securities on NASDAQ.

6.

	 	(a)	 	(i) The Company represents and agrees that, without the prior consent of each of the
Representatives, it has not made and will not make any offer relating to the Securities
that, if the offering of the Securities contemplated by this Agreement were conducted as a
public offering pursuant to a registration statement filed under the Act with the
Commission, would constitute an “issuer free writing prospectus,” as defined in Rule 433
under the Act (any such offer is hereinafter referred to as a “Company Supplemental
Disclosure Document”);

(ii) each Purchaser represents and agrees that, without the prior consent of the Company
and each of the Representatives, other than one or more term sheets relating to the
Securities containing customary information and conveyed to purchasers of securities, it
has not made and will not make any offer relating to the Securities that, if the offering
of the Securities contemplated by this Agreement were conducted as a public offering
pursuant to a registration statement filed under the Act with the Commission, would
constitute a “free writing prospectus,” as defined in Rule 405 under the Act (any such
offer (other than any such term sheets), is hereinafter referred to as a “Purchaser
Supplemental Disclosure Document”); and

(iii) any Company Supplemental Disclosure Document or Purchaser Supplemental Disclosure
Document the use of which has been consented to by the Company and each of the
Representatives is listed on Schedule II(b) hereto;

	 	7.	 	The Company covenants and agrees with the several Purchasers that the Company will pay
or cause to be paid the following: (i) the fees, disbursements and expenses of the
Company’s counsel and accountants in connection with the issue
of the Securities and the shares of Stock issuable upon conversion of the Securities and all other expenses in
connection with the preparation, printing, reproduction and filing of the Preliminary
Offering Memorandum and the Offering Memorandum and any amendments and supplements thereto
and the mailing and delivering of copies thereof to the Purchasers and dealers; (ii) the
cost of printing or producing any Agreement among Purchasers, this Agreement, the
Indenture, the Registration Rights Agreement, the Blue Sky Memorandum, closing documents
(including any compilations thereof) and any other documents in connection with the
offering, purchase, sale and delivery of the Securities; (iii) all expenses in connection
with the qualification of the Securities and the shares of Stock issuable upon conversion
of the Securities for offering and sale under state securities laws as provided in Section
5(b) hereof, including the fees and disbursements of counsel for the Purchasers in
connection

16

 

	 	 	 	with such
qualification and in
connection with the Blue Sky and legal investment surveys in an amount not to exceed
$10,000.00; (iv) any fees charged by securities rating services for rating the Securities;
(v) the cost of preparing the Securities; (vi) the fees and expenses of the Trustee and
any agent of the Trustee and the fees and disbursements of counsel for the Trustee in
connection with the Indenture and the Securities; (vii) any cost incurred in connection
with the designation of the Securities for trading in PORTAL and the listing of the shares
of Stock issuable upon conversion of the Securities; and (viii) all other costs and
expenses incident to the performance of its obligations hereunder which are not otherwise
specifically provided for in this Section. It is understood, however, that, except as
provided in this Section, and Sections 9 and 12 hereof, the Purchasers will pay all of
their own costs and expenses, including the fees of their counsel, transfer taxes on
resale of any of the Securities by them, and any advertising expenses connected with any
offers they may make.

	8.	 	The obligations of the Purchasers hereunder shall be subject, in their discretion, to the
condition that all representations and warranties and other statements of the Company herein
are, at and as of the Time of Delivery, true and correct, the condition that the Company shall
have performed all of its obligations hereunder theretofore to be performed, and the following
additional conditions:

	 	(a)	 	Davis Polk & Wardwell, counsel for the Purchasers, shall have furnished to you such
opinion or opinions, dated such Time of Delivery, with respect to the matters covered in
paragraphs (vii), (viii), (ix), (x), (xiv) (except as to “Material U.S. Federal Income Tax
Considerations”) and (xvi) of subsection (b) below, and a letter with respect to paragraph
(xviii) of subsection (b), as well as such other related matters as you may reasonably
request, and such counsel shall have received such papers and information as they may
reasonably request to enable them to pass upon such matters;
	 
	 	(b)	 	Heller Ehrman LLP, counsel for the Company, shall have furnished to you their written
opinion, dated such Time of Delivery, in form attached hereto as Exhibit B;
	 
	 	(c)	 	Jonathan D. Spangler, Vice President and Chief Patent Counsel for the Company, shall
have furnished to you, at the request of the Company, his written opinion dated the Time of
Delivery, in form and substance satisfactory to you, to the effect that:

	 	(i)	 	Nothing has come to his attention causing him to believe that the statements
relating to any intellectual property rights owned or licensed by the Company or its
subsidiaries included in Part I, Item 1 of the Company’s 2007 Form 10-K under the
caption “Business—Intellectual Property”, “—Patents” and “Trademarks”, and the
statements set forth in Part I, Item 1A of the Company’s 2007 Form 10-K and the
Offering Circular under the caption “Risk Factors—Risks Related to Our Intellectual
Property and Potential Litigation—Our ability to protect our intellectual property and
proprietary technology through patents and other means is uncertain” as of the date
hereof contain any untrue statement of material fact or fail to state any material fact
necessary to make the statements therein not misleading;
	 
	 	(ii)	 	To his knowledge, the Company owns or otherwise possesses sufficient rights
under all intellectual property rights that are currently employed by the Company in
connection with the business now operated by it, or that is necessary for the
manufacture, use or sale of its current products and the proposed product that is in
clinical trial as described

17

 

	 	 	 	in Part I, Item 1 of the Company’s 2007 Form 10-K under the
captions “Business—The NuVasive
Solution—Maximum Access Surgery (MAS)”, “—MAS—NeuroVision”, “MAS—MaXcess”,
“MAS—Specialized Implants”, and “—Classic Fusion” and “Development Projects”;
	 
	 	(iii)	 	To his knowledge, neither the Company nor its subsidiaries has received any
communication or notice alleging any act of infringement by the Company or any of its
subsidiaries of any intellectual property rights of any third party other than those
set forth in Part I, Item 1A of the Company’s 2007 Form 10-K and the Offering Circular
under the caption “Risk Factors—Risks Related to Our Intellectual Property and
Potential Litigation—Our ability to protect our intellectual property and proprietary
technology through patents and other means is uncertain”;
	 
	 	(iv)	 	To his knowledge, the claims of all issued, unexpired patents owned by or
exclusively licensed to the Company or any of its subsidiaries are valid and
enforceable under the U.S. patent laws ;
	 
	 	(vi)	 	The statements included in Part I, Item 1 of the Company’s 2007 Form 10-K under
the caption “Business—Intellectual Property”, “—Patents” and “Trademarks”, and the
statements set forth in Part I, Item 1A of the Company’s 2007 Form 10-K and the
Offering Circular under the caption “Risk Factors—Risks Related to Our Intellectual
Property and Potential Litigation—Our ability to protect our intellectual property and
proprietary technology through patents and other means is uncertain”, insofar as such
statements purport to summarize applicable provisions of United States patent law and
regulations promulgated thereunder, are accurate summaries in all material respects of
the provisions purported to be summarized therein.
	 
	 	(vii)	 	To his knowledge, no interference, reexamination, or other judicial or
administrative proceeding pertaining to the validity, enforceability, or scope of any
patents or other intellectual property rights owned by or exclusively licensed to the
Company has been threatened or declared; and
	 
	 	(viii)	 	To his knowledge, all material published literature, all material patent references,
and any other material pertinent information relating to the inventions claimed in any
patents or patent applications owned by the Company or any of its subsidiaries and
qualifying as prior art under United States patent law known to him has been disclosed
to the United States Patent and Trademark Office (USPTO) in accordance with 37 C.F.R.
Section 1.56. To his knowledge, all material information submitted to the USPTO in the
relevant applications, and in connection with the prosecution of the relevant
applications, was believed to be accurate at the time it was submitted. Neither he,
nor to his knowledge, the Company and its subsidiaries, have made any material
misrepresentation or concealed any material information from the USPTO in any patent or
patent application owned by the Company or any of its subsidiaries in violation of 37
C.F.R. Section 1.56.

	 	(d)	 	On the date of the Offering Memorandum prior to the execution of this Agreement and
also at the Time of Delivery, Ernst & Young LLP shall have furnished to you a letter or
letters, dated the respective dates of delivery thereof, in form attached hereto as Exhibit
C;

18

 

	 	(e)	 	(i) Neither the Company nor any of its subsidiaries shall have sustained since the date
of the latest audited financial statements included in the Pricing
Memorandum any loss or interference with its business from fire, explosion, flood or other calamity, whether or
not covered by insurance, or from any labor dispute or court or governmental action, order
or decree, otherwise than as set forth or contemplated in the Pricing Memorandum, and (ii)
since the respective dates as of which information is given in the Pricing Memorandum
there shall not have been any change in the capital stock (except for changes made in the
ordinary course of business consistent with past practice pursuant to the Company’s equity
plans in existence prior to the date of this Agreement, and other than the exercise of
options and warrants outstanding prior to the date of this Agreement) or long-term debt of
the Company or any of its subsidiaries or any change, or any development involving a
prospective change, in or affecting the general affairs, management, financial position,
stockholders’ equity or results of operations of the Company and its subsidiaries, taken
as a whole, otherwise than as set forth or contemplated in the Pricing Memorandum, the
effect of which, in any such case described in clause (i) or (ii), is in your judgment so
material and adverse as to make it impracticable or inadvisable to proceed with the
offering or the delivery of the Securities being issued at such Time of Delivery on the
terms and in the manner contemplated in this Agreement and in the Offering Memorandum;
	 
	 	(f)	 	On or after the Applicable Time (i) no downgrading shall have occurred in the rating
accorded the Company’s debt securities by any “nationally recognized statistical rating
organization”, as that term is defined by the Commission for purposes of Rule 436(g)(2)
under the Act, and (ii) no such organization shall have publicly announced that it has
under surveillance or review, with possible negative implications, its rating of any of the
Company’s debt securities;
	 
	 	(g)	 	On or after the Applicable Time there shall not have occurred any of the following: (i)
a suspension or material limitation in trading in securities generally on the New York
Stock Exchange; or on NASDAQ; (ii) a suspension or material limitation in trading in the
Company’s securities on NASDAQ; (iii) a general moratorium on commercial banking activities
declared by either Federal, New York or California State authorities or a material
disruption in commercial banking or securities settlement or clearance services in the
United States; (iv) the outbreak or escalation of hostilities involving the United States
or the declaration by the United States of a national emergency or war or (v) the
occurrence of any other calamity or crisis or any change in financial, political or
economic conditions in the United States or elsewhere, if the effect of any such event
specified in clause (iv) or (v) in your judgment makes it impracticable or inadvisable to
proceed with the offering or the delivery of the Securities being issued at such Time of
Delivery on the terms and in the manner contemplated in the Offering Memorandum;
	 
	 	(h)	 	The Securities have been designated for trading on PORTAL;
	 
	 	(i)	 	The shares of Stock issuable upon conversion of the Securities shall have been duly
listed, subject to notice of issuance, for quotation on NASDAQ;
	 
	 	(j)	 	The Purchasers shall have received a counterpart of the Registration Rights Agreement
that shall have been executed and delivered by a duly authorized officer of the Company;

19

 

	 	(k)	 	The Company shall have obtained and delivered to the Purchasers executed copies of a
lock-up agreement in the form attached hereto as Exhibit A from each of the executive
officers and directors of the Company; and
	 
	 	(l)	 	The Company shall have furnished or caused to be furnished to you at such Time of
Delivery certificates of officers of the Company satisfactory to you as to the accuracy of
the representations and warranties of the Company herein at and as of such Time of
Delivery, as to the performance by the Company of all of its obligations hereunder to be
performed at or prior to such Time of Delivery, as to the matters set forth in subsection
(e) of this Section and as to such other matters as you may reasonably request.

	9.	(a)	 	The Company will indemnify and hold harmless each Purchaser against any losses, claims,
damages or liabilities, joint or several, to which such Purchaser may become subject, under
the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in any Preliminary Offering Memorandum, the Pricing
Memorandum, the Offering Memorandum, or any amendment or supplement thereto, any Company
Supplemental Disclosure Document, or arise out of or are based upon the omission or alleged
omission to state therein a material fact necessary to make the statements therein not
misleading, and will reimburse each Purchaser for any legal or other expenses reasonably
incurred by such Purchaser in connection with investigating or defending any such action or
claim as such expenses are incurred; provided, however, that the Company shall not be liable
in any such case to the extent that any such loss, claim, damage or liability arises out of or
is based upon an untrue statement or alleged untrue statement or omission or alleged omission
made in any Preliminary Offering Memorandum, the Pricing Memorandum, the Offering Memorandum
or any such amendment or supplement, or any Company Supplemental Disclosure Document, in
reliance upon and in conformity with written information furnished to the Company by any
Purchaser through the Representatives expressly for use therein.
	 
	 	(b)	 	Each Purchaser will indemnify and hold harmless the Company against any losses, claims,
damages or liabilities to which the Company may become subject, under the Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Offering Memorandum, the Pricing Memorandum, the
Offering Memorandum, or any amendment or supplement thereto, or any Company Supplemental
Disclosure Document, or arise out of or are based upon the omission or alleged omission to
state therein a material fact or necessary to make the statements therein not misleading,
in each case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in any Preliminary Offering
Memorandum, the Pricing Memorandum, the Offering Memorandum or any such amendment or
supplement, or any Company Supplemental Disclosure Document in reliance upon and in
conformity with written information furnished to the Company by such Purchaser through the
Representatives expressly for use therein; and will reimburse the Company for any legal or
other expenses reasonably incurred by the Company in connection with investigating or
defending any such action or claim as such expenses are incurred.

20

 

	 	(c)	 	Promptly after receipt by an indemnified party under subsection (a) or (b) above of
notice of the commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under such subsection, notify
the indemnifying party in writing of the commencement thereof; but the omission so to
notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party
otherwise than under such subsection. In case any such action shall be brought against
any indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate therein and, to the
extent that it shall wish, jointly with any other indemnifying party similarly notified,
to assume the defense thereof, with counsel reasonably satisfactory to such indemnified
party (who shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such indemnified
party of its election so to assume the defense thereof, the indemnifying party shall not
be liable to such indemnified party under such subsection for any legal expenses of other
counsel or any other expenses, in each case subsequently incurred by such indemnified
party, in connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party shall, without the written consent of the
indemnified party, effect the settlement or compromise of, or consent to the entry of any
judgment with respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the indemnified
party is an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (i) includes an unconditional release of the indemnified party from
all liability arising out of such action or claim and (ii) does not include a statement as
to, or an admission of, fault, culpability or a failure to act, by or on behalf of any
indemnified party.
	 
	 	(d)	 	If the indemnification provided for in this Section 9 is unavailable to or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above in respect of any
losses, claims, damages or liabilities (or actions in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or actions in
respect thereof) in such proportion as is appropriate to reflect the relative benefits
received by the Company on the one hand and the Purchasers on the other from the offering
of the Securities. If, however, the allocation provided by the immediately preceding
sentence is not permitted by applicable law or if the indemnified party failed to give the
notice required under subsection (c) above, then each indemnifying party shall contribute
to such amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative fault of the
Company on the one hand and the Purchasers on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and the Purchasers on the other shall be
deemed to be in the same proportion as the total net proceeds from the offering (before
deducting expenses) received by the Company bear to the total underwriting discounts and
commissions received by the Purchasers, in each case as set forth in the Offering
Memorandum. The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company on
the one hand or the Purchasers on the other and the parties’ relative intent, knowledge,
access to information and opportunity to correct or

21

 

	 	 	 	prevent such statement or omission.
The Company and the Purchasers agree that it would not be just and equitable if
contribution pursuant to this subsection (d) were determined by pro rata allocation (even
if the Purchasers were treated as one entity for such purpose) or by
any other method of allocation which does not take account of the equitable considerations referred to above
in this subsection (d). The amount paid or payable by an indemnified party as a result of
the losses, claims, damages or liabilities (or actions in respect thereof) referred to
above in this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this subsection
(d), no Purchaser shall be required to contribute any amount in excess of the amount by
which the total price at which the Securities underwritten by it and distributed to
investors were offered to investors exceeds the amount of any damages which such Purchaser
has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. The Purchasers’ obligations in this subsection (d) to
contribute are several in proportion to their respective underwriting obligations and not
joint.
	 
	 	(e)	 	The obligations of the Company under this Section 9 shall be in addition to any
liability which the Company may otherwise have and shall extend, upon the same terms and
conditions, to any affiliate of each Purchaser and each person, if any, who controls any
Purchaser within the meaning of the Act; and the obligations of the Purchasers under this
Section 9 shall be in addition to any liability which the respective Purchasers may
otherwise have and shall extend, upon the same terms and conditions, to each officer and
director of the Company and to each person, if any, who controls the Company within the
meaning of the Act.

	10.	(a)	 	If any Purchaser shall default in its obligation to purchase the Securities which it has
agreed to purchase hereunder, you may in your discretion arrange for you or another party or
other parties to purchase such Securities on the terms contained herein at such Time of
Delivery. If within thirty-six hours after such default by any Purchaser you do not arrange
for the purchase of such Securities, then the Company shall be entitled to a further period of
thirty-six hours within which to procure another party or other parties satisfactory to you to
purchase such Securities on such terms. In the event that, within the respective prescribed
periods, you notify the Company that you have so arranged for the purchase of such Securities,
or the Company notifies you that it has so arranged for the purchase of such Securities, you
or the Company shall have the right to postpone the Time of Delivery for a period of not more
than seven days, in order to effect whatever changes may thereby be made necessary in the
Offering Memorandum, or in any other documents or arrangements, and the Company agrees to
prepare promptly any amendments to the Offering Memorandum which in your opinion may thereby
be made necessary. The term “Purchaser” as used in this Agreement shall include any person
substituted under this Section with like effect as if such person had originally been a party
to this Agreement with respect to such Securities.
	 
	 	(b)	 	If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Purchaser or Purchasers by you and the Company as provided in subsection (a)
above, the aggregate principal amount of such Securities which remains unpurchased does not
exceed one-eleventh of the aggregate principal amount of all the Securities to be purchased
at such Time of Delivery, then the Company shall have the right to require each
non-defaulting Purchaser to purchase the principal amount of Securities which such
Purchaser agreed to

22

 

	 	 	 	purchase hereunder at such Time of Delivery and, in addition, to
require each non-defaulting Purchaser to purchase its pro rata share (based on the
principal amount of Securities which such Purchaser agreed to purchase hereunder) of the
Securities of such defaulting
Purchaser or Purchasers for which such arrangements have not been made; but nothing herein
shall relieve a defaulting Purchaser from liability for its default.
	 
	 	(c)	 	If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Purchaser or Purchasers by you and the Company as provided in subsection (a)
above, the aggregate principal amount of Securities which remains unpurchased exceeds
one-eleventh of the aggregate principal amount of all the Securities to be purchased at
such Time of Delivery, or if the Company shall not exercise the right described in
subsection (b) above to require non-defaulting Purchasers to purchase Securities of a
defaulting Purchaser or Purchasers, then this Agreement (or, with respect to the Second
Time of Delivery, the obligation of the Purchasers to purchase and of the Company to sell
the Optional Securities) shall thereupon terminate, without liability on the part of any
non-defaulting Purchaser or the Company, except for the expenses to be borne by the Company
and the Purchasers as provided in Section 6 hereof and the indemnity and contribution
agreements in Section 9 hereof; but nothing herein shall relieve a defaulting Purchaser
from liability for its default.

	11.	 	The respective indemnities, agreements, representations, warranties and other statements of
the Company and the several Purchasers, as set forth in this Agreement or made by or on behalf
of them, respectively, pursuant to this Agreement, shall remain in full force and effect,
regardless of any investigation (or any statement as to the results thereof) made by or on
behalf of any Purchaser or any controlling person of any Purchaser, or the Company, or any
officer or director or controlling person of the Company, and shall survive delivery of and
payment for the Securities.
	 
	12.	 	If this Agreement shall be terminated pursuant to Section 10 hereof, the Company shall not
then be under any liability to any Purchaser except as provided in Sections 7 and 9 hereof;
but, if for any other reason, the Securities are not delivered by or on behalf of the Company
as provided herein, the Company will reimburse the Purchasers through you for all expenses
approved in writing by you, including fees and disbursements of counsel, reasonably incurred
by the Purchasers in making preparations for the purchase, sale and delivery of the
Securities, but the Company shall then be under no further liability to any Purchaser except
as provided in Sections 7 and 9 hereof.
	 
	13.	 	In all dealings hereunder, you shall act on behalf of each of the Purchasers, and the parties
hereto shall be entitled to act and rely upon any statement, request, notice or agreement on
behalf of any Purchaser made or given by you jointly.
	 
	 	 	All statements, requests, notices and agreements hereunder shall be in writing, and if to the
Purchasers shall be delivered or sent by mail, telex or facsimile transmission to you as the
Representatives in care of Goldman, Sachs & Co., One New York Plaza, 42nd Floor, New York, New
York 10004, Attention: Registration Department and in care of J.P. Morgan Securities Inc., 277
Park Avenue, New York, New York 10172, Attention: Syndicate Desk; and if to the Company shall be
delivered or sent by mail, telex or facsimile transmission to the address of the Company set
forth in the Offering Memorandum, Attention: Secretary; provided, however, that any notice to a
Purchaser pursuant to Section 8(I) hereof shall be delivered or sent by mail, telex or facsimile
transmission to such Purchaser at its address set forth in its Purchasers’ Questionnaire, or
telex

23

 

	 	 	constituting such Questionnaire, which address will be supplied to the Company by you upon
request. Any such statements, requests, notices or agreements shall take effect upon receipt
thereof.
	 
	 	 	In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)), the initial purchasers are required to obtain, verify and record
information that identifies their respective clients, including the Company, which information
may include the name and address of their respective clients, as well as other information that
will allow the initial purchasers to properly identify their respective clients.
	 
	14.	 	This Agreement shall be binding upon, and inure solely to the benefit of, the Purchasers, the
Company and, to the extent provided in Sections 9 and 11 hereof, the officers and directors of
the Company and each person who controls the Company or any Purchaser, and their respective
heirs, executors, administrators, successors and assigns, and no other person shall acquire or
have any right under or by virtue of this Agreement. No purchaser of any of the Securities
from any Purchaser shall be deemed a successor or assign by reason merely of such purchase.
	 
	15.	 	Time shall be of the essence of this Agreement.
	 
	16.	 	The Company acknowledges and agrees that (i) the purchase and sale of the Securities pursuant
to this Agreement is an arm’s-length commercial transaction between the Company, on the one
hand, and the several Purchasers, on the other, (ii) in connection therewith and with the
process leading to such transaction each Purchaser is acting solely as a principal and not the
agent or fiduciary of the Company, (iii) no Purchaser has assumed an advisory or fiduciary
responsibility in favor of the Company with respect to the offering contemplated hereby or the
process leading thereto (irrespective of whether such Purchaser has advised or is currently
advising the Company on other matters) or any other obligation to the Company except the
obligations expressly set forth in this Agreement and (iv) the Company has consulted its own
legal and financial advisors to the extent it deemed appropriate. The Company agrees that it
will not claim that the Purchaser, or any of them, has rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to the Company, in connection with such
transaction or the process leading thereto.
	 
	17.	 	This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company and the Purchasers, or any of them, with respect to the subject matter
hereof.
	 
	18.	 	This Agreement shall be governed by and construed in accordance with the laws of the State of
New York.
	 
	19.	 	The Company and each of the Purchasers hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.
	 
	20.	 	This Agreement may be executed by any one or more of the parties hereto in any number of
counterparts, each of which shall be deemed to be an original, but all such respective
counterparts shall together constitute one and the same instrument.
	 
	21.	 	Notwithstanding anything herein to the contrary, the Company (and the Company’s employees,
representatives, and other agents) are authorized to disclose to any and all persons, the tax
treatment and tax structure of the potential transaction and all materials of any kind
(including tax opinions and other tax analyses) provided to the Company relating to that
treatment and structure, without the Purchasers’ imposing any limitation of any kind. However,
any information relating to the
tax

24

 

	 	 	treatment and tax structure shall remain confidential (and the foregoing sentence shall not
apply) to the extent necessary to enable any person to comply with securities laws. For this
purpose, “tax treatment” means US federal and state income tax treatment, and “tax structure” is
limited to any facts that may be relevant to that treatment.

If the foregoing is in accordance with your understanding, please sign and return to us five
counterparts hereof, and upon the acceptance hereof by you, on behalf of each of the Purchasers,
this letter and such acceptance hereof shall constitute a binding agreement between each of the
Purchasers and the Company. It is understood that your acceptance of this letter on behalf of each
of the Purchasers is pursuant to the authority set forth in a form of Agreement among Purchasers,
the form of which shall be submitted to the Company for examination upon request, but without
warranty on your part as to the authority of the signers thereof.

[Signature Page Follows]

25

 

	 	 	 	 	 
	 	Very truly yours,

NuVasive, Inc.

 	 
	 	By:  	/s/ Alexis V. Lukianov
 	 
	 	 	Name:  	Alexis V. Lukianov 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 

Accepted as of the date hereof:

Goldman, Sachs & Co.

	 	 	 	 	 
	By:

	 	/s/ Authorized Signatory
 

	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	J.P. Morgan Securities Inc.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jason M. Wood
 

	 	 
	 

	 	Name: Jason M. Wood	 	 
	 

	 	Title: Executive Director	 	 

               On behalf of each of the Purchasers

[Signature Page to Purchase Agreement]

26

 

SCHEDULE I

	 	 	 	 	 
	 	 	Principal	 
	 	 	Amount of	 
	 	 	Securities	 
	 	 	to be	 
	Purchaser	 	Purchased	 
	Goldman, Sachs & Co.
	 	$	100,000,000	 
	J.P. Morgan Securities Inc.
	 	 	100,000,000	 
	 
	 	 	 
	Total
	 	$	200,000,000	 
	 
	 	 	 

27

 

SCHEDULE II

	 	(a)	 	Additional Documents Incorporated by Reference:
	 
	 	(b)	 	Approved Supplemental Disclosure Documents:

Investor road show slide presentation

28

 

SCHEDULE III

(pricing term sheet attached)

29

 

Exhibit A

Form of Lock-Up Agreement

Goldman, Sachs & Co.

J.P. Morgan Securities Inc.

     As representatives of the several Purchasers

     named in Schedule I to the Purchase Agreement

c/o Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

          Re: NuVasive, Inc. — Lock-Up Agreement

Ladies and Gentlemen:

The undersigned understands that you, as representatives (the “Representatives”), propose to enter
into a Purchase Agreement (the “Purchase Agreement”) on behalf of the several purchasers named in
Schedule I to such agreement (collectively, the “Purchasers”), with NuVasive, Inc., a Delaware
corporation (the “Company”), providing for the offering of the Company’s Convertible Senior Notes
due 2013 (the “Securities”). The Securities will be convertible into shares of common stock of the
Company, par value $0.001 per share (the “Common Stock”).

     In consideration of the agreement by the Purchasers to offer and sell the Securities, and of
other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged,
the undersigned agrees that, during the period beginning from the date hereof and continuing to and
including the date 90 days after the date of the Purchase Agreement, the undersigned will not
offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or
otherwise dispose of any shares of Common Stock, or any options or warrants to purchase any shares
of Common Stock, or any securities convertible into, exchangeable for or that represent the right
to receive shares of Common Stock, whether now owned or hereinafter acquired, owned directly by the
undersigned (including holding as a custodian) or with respect to which the undersigned has
beneficial ownership within the rules and regulations of the Securities Exchange Commission
(collectively the “Undersigned’s Shares”).

     The foregoing restriction is expressly agreed to preclude the undersigned from engaging in any
hedging or other transaction which is designed to or which reasonably could be expected to lead to
or result in a sale or disposition of the Undersigned’s Shares even if such shares would be
disposed of by someone other than the undersigned. Such prohibited hedging or other transactions
would include without limitation any short sale or any purchase, sale or grant of any right
(including without limitation any put or call option) with respect to any of the Undersigned’s
Shares or with respect to any security that includes, relates to, or derives any significant part
of its value from such shares.

A-1

 

     Notwithstanding the foregoing, the undersigned may transfer the Undersigned’s Shares (i) as a
bona fide gift or gifts, provided that the donee or donees thereof agree to be bound in writing by
the restrictions set forth herein, (ii) to any trust for the direct or indirect benefit of the
undersigned or the immediate family of the undersigned, provided that the trustee of the trust
agrees to be bound in writing by the restrictions set forth herein, and provided further that any
such transfer shall not involve a disposition for value, (iii) pursuant to any contract,
instruction or plan complying with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended,
that has been entered into by the undersigned prior to the date of this Lock-Up Agreement, (iv)
that are beneficially owned by the undersigned who are directors of the Company and that are
designated by the Company to part of an aggregate of up to 150,000 shares of Common Stock as set
forth in the Purchase Agreement or (v) with the prior written consent of each of Goldman, Sachs &
Co. and J.P. Morgan Securities Inc. on behalf of the Purchasers; provided, however,
in the case of clauses (i) and (ii), no party, including the undersigned, shall (a) be required to,
nor shall it voluntarily, file a report under the Securities Exchange Act of 1934, as amended, in
connection with such transfer (other than a filing on Form 5 made after the expiration of the
90-day restricted period referred to above) or (b) otherwise voluntarily effect any public filing,
report or announcement of such transfer.

     For purposes of this Lock-Up Agreement, “immediate family” shall mean any relationship by
blood, marriage or adoption, not more remote than first cousin. In addition, notwithstanding the
foregoing, if the undersigned is a corporation, the corporation may transfer the capital stock of
the Company to any wholly-owned subsidiary of such corporation; provided, however,
that in any such case, it shall be a condition to the transfer that the transferee execute an
agreement stating that the transferee is receiving and holding such capital stock subject to the
provisions of this Lock-up Agreement and there shall be no further transfer of such capital stock
except in accordance with this Lock-Up Agreement, and provided further that any such transfer shall
not involve a disposition for value. The undersigned now has, and, except as contemplated by
clause (i), (ii), (iii) or (iv) above, for the duration of this Lock-Up Agreement will have, good
and marketable title to the Undersigned’s Shares, free and clear of all liens, encumbrances, and
claims whatsoever.

     In addition, the undersigned agrees that, without the prior written consent of each of
Goldman, Sachs & Co. and J.P. Morgan Securities Inc. on behalf of the Purchasers, it will not,
during the period commencing on the date hereof and ending 90 days after the date of the Purchase
Agreement, make any demand for or exercise any right with respect to, the registration of any
shares of Common Stock or any security convertible into or exercisable or exchangeable for Common
Stock. The undersigned also agrees and consents to the entry of stop transfer instructions with
the Company’s transfer agent and registrar against the transfer of the Undersigned’s Shares except
in compliance with the foregoing restrictions.

     The undersigned understands that the Company and the Purchasers are relying upon this Lock-Up
Agreement in proceeding toward consummation of the offering. The undersigned further understands
that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned’s heirs, legal
representatives, successors, and assigns.

	 	 	 	 	 
	 

	 	Very truly yours,	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

A-2

 

	 	 	 	 	 
	 

	 	Exact Name of Shareholder	 	 
	 
	 	 	 	 
	 

	 	 

Authorized Signature
	 	 
	 
	 	 	 	 
	 

	 	 

Title
	 	 

A-3

 

Exhibit B

Form of Opinion of Outside Counsel

          (a) The Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Delaware, with full corporate power and
authority to own its properties and conduct its business as described in the Offering
Memorandum. The Company has been duly qualified as a foreign corporation for the
transaction of business and is in good standing under the laws of California and Tennessee.

          (b) The Company has an authorized capitalization as set forth in the Offering
Memorandum.

          (c) The Company has the corporate power and authority to execute and deliver each of
the Transaction Documents to which it is a party and to perform its obligations thereunder.

          (d) The Indenture has been duly authorized, executed and delivered by the Company and,
assuming due execution and delivery thereof by the Trustee, constitutes a valid and legally
binding instrument, enforceable against the Company in accordance with its terms.

          (e) The Securities have been duly authorized, executed, authenticated, issued and
delivered and constitute valid and legally binding obligations of the Company entitled to
the benefits provided by the Indenture; and the Securities and the Indenture conform to the
summary descriptions thereof in the Offering Memorandum.

          (f) The shares of Stock initially issuable upon conversion of the Securities have been
duly and validly authorized and reserved for issuance and, when issued and delivered in
accordance with the provisions of the Securities and the Indenture, will be duly and validly
issued and fully paid and non assessable, and will conform to the description of the Stock
contained in the Offering Memorandum.

          (g) The Purchase Agreement has been duly authorized, executed and delivered by the
Company. The Registration Rights Agreement has been duly authorized, executed and delivered
by the Company, and when duly executed and delivered by the other parties thereto,
constitutes a valid and legally binding instrument enforceable against the Company in
accordance with its terms.

          (h) The issue and sale of the Securities and the compliance by the Company with all of
the provisions of the Securities, the Indenture, the Registration Rights Agreement and the
Purchase Agreement and the consummation of the transactions herein and therein contemplated
will not: (i) conflict with or result in a breach or violation by the Company of any of the
terms or provisions of, or constitute a default under, any material contract or other
agreement or instrument: (a) filed as an exhibit to the Company’s Annual Report on Form 10-K
for the year ended December 31, 2007, or (b) to our knowledge, entered into after December
31, 2007 (collectively, the “Material Contracts”), except for such conflicts or breaches as
would not, individually or in the aggregate, have a material adverse effect on the Company
and its subsidiaries, taken as a whole, (ii) result in any violation of the provisions of
the Certificate of

B-1

 

Incorporation or By laws of the Company or (iii) result in the violation of any
federal, Delaware corporate, California or New York statute or any order, rule or regulation
known to us of any federal, California or New York court, governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their properties.

          (i) No consent, approval, authorization, order, registration or qualification of or
with any such court or governmental agency or body is required for the issue and sale of the
Securities or the consummation by the Company of the transactions contemplated by the
Purchase Agreement, the Indenture or the Registration Rights Agreement, except: (i) the
potential filing of a registration statement by the Company with the Commission pursuant to
the Act pursuant to the Registration Rights Agreement, such as may be required under the Act
in connection with the shares of Stock issuable upon conversion of the Securities, and the
subsequent declaration of effectiveness thereof by the Commission, (ii) for a Nasdaq
Notification Form for listing of additional shares, (iii) for a filing under Regulation D as
promulgated under the Securities Act of 1933, as amended, (iv) such consents, approvals,
authorizations, registrations or qualifications as may be required under federal or state
securities or Blue Sky laws in connection with the purchase and distribution of the
Securities by the Purchasers and (v) the rules and regulations of the FINRA.

          (j) To the best of our knowledge and other than as set forth in the Offering
Memorandum, there are no legal or governmental proceedings pending to which the Company or
any of its subsidiaries is a party or of which any property of the Company or any of its
subsidiaries is the subject which, if determined adversely to the Company or any of its
subsidiaries, would reasonably be expected to,individually or in the aggregate, have a
material adverse effect on the current or future consolidated financial position,
stockholders’ equity or results of operations of the Company and its subsidiaries; and, to
the best of our knowledge, no such proceedings are overtly threatened or overtly
contemplated by governmental authorities or overtly threatened by others.

          (k) The statements set forth in the Offering Memorandum under the caption “Description
of Notes” and “Description of Capital Stock”, insofar as they purport to constitute a
summary of the terms of the Securities and the Stock, and under the captions “Material U.S.
Federal Income Tax Considerations”, “Plan of Distribution” and “Transfer Restrictions”,
insofar as they purport to describe the provisions of the laws and documents referred to
therein, fairly present and summarize such matters in all material respects.

          (l) Based solely on our participation in conferences with certain officers and other
representatives of the Company, you, your counsel and the independent registered public
accounting firm of the Company, at which such conferences the contents of the Pricing
Disclosure Package (which does not include electronic road shows for purposes of this
opinion), the Offering Memorandum and related matters were discussed, nothing has come to
our attention which leads us to believe that, as of the date of the Offering Memorandum, and
at all times subsequent thereto up to and on the date hereof, each of the documents
incorporated by reference on page ___of the Offering Memorandum (collectively, the
“Incorporated Documents”) did not comply as to form with the Exchange Act and the rules and
regulations of the
Commission thereunder in all material respects at such time as they were

B-2

 

filed with the
Commission (it being understood that we have not verified the accuracy or completeness of
the statements contained in the Pricing Disclosure Package, the Offering Memorandum or the
Incorporated Documents (except as expressly provided in this opinion), nor do we express any
opinion or belief as to the financial statements and schedules or other financial and
statistical data derived therefrom, included or incorporated by reference therein.

          (m) The Company is not, and after giving effect to the offering and sale of the
Securities to be issued and sold by the Company under the Purchase Agreement and the
Indenture and the application of the net proceeds from such sale as described in the
Offering Memorandum under the caption “Use of Proceeds,” will not be required to register as
an “investment company,” as such term is defined in the Investment Company Act.

          (n) Assuming the accuracy of the representation, warranties and agreements of the
Company and the Purchasers contained in the Purchase Agreement, no registration of the
Securities under the Act, and no qualification of an indenture under the Trust Indenture Act
of 1939 with respect thereto, is required for the offer, sale and initial resale of the
Securities by the Purchasers in the manner contemplated by the Purchase Agreement.

          Based solely on our participation in the preparation of the Offering Memorandum,
Pricing Disclosure Package and conferences with certain officers and other representatives
of the Company, you, your counsel and the independent registered public accounting firm of
the Company, at which such conferences the contents of the Pricing Disclosure Package (which
does not include electronic road shows for purposes of this paragraph), the Offering
Memorandum and related matters were discussed, and although we assume no responsibility for
the accuracy, completeness or fairness of the Pricing Disclosure Package or the Offering
Memorandum or any amendment or supplement thereto (except as previously provided in the
opinion), on the basis of such participation, nothing has come to our attention to cause us
to believe that (A) the Pricing Disclosure Package, as of the Applicable Time (other than
the financial statements and schedules or other Financial and statistical data derived
therefrom, included or incorporated by reference therein, as to which we express no
statement of belief or opinion), contained any untrue statement of a material fact or
omitted to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; or (B) the Offering
Memorandum and any further amendments or supplements thereto made by the Company prior to
each Time of Delivery (other than the financial statements therein, as to which we express
no statement of belief or opinion) contained as of its date or contains as of each Time of
Delivery an untrue statement of a material fact or omitted or omits, as the case may be, to
state any material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

B-3

 

Exhibit C

Form of Comfort Letter

     1. We are an independent registered public accounting firm with respect to the Company
within the meaning of the Act and the applicable rules and regulations thereunder adopted by
the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight
Board (United States) (PCAOB).

     2. In our opinion, the consolidated financial statements audited by us and included in
the Company’s Annual Report on Form 10-K for the year ended December 31, 2007 and
incorporated by reference in the Offering Memorandum comply as to form in all material
respects with the applicable accounting requirements of the Act and the Securities Exchange
Act of 1934 (the “Exchange Act”) and the related rules and regulations adopted by the SEC.

     3. We have not audited any financial statements of the Company as of any date or for
any period subsequent to December 31, 2007. We also have not audited the effectiveness of
the Company’s internal control over financial reporting as of any date subsequent to
December 31, 2007. The purpose (and therefore the scope) of our audit for the year ended
December 31, 2007 was to enable us to express our opinion on (i) the consolidated financial
statements at December 31, 2007 and for the year then ended, but not on the financial
statements for any interim period within that year, and (ii) the effectiveness of the
Company’s internal control over financial reporting, as of December 31, 2007, but not on the
effectiveness of the Company’s internal control over financial reporting as of any date or
for any period within the year ended December 31, 2007. Therefore, we are unable to and do
not express any opinion on the financial position, results of operations or cash flows as of
any other date or for any period subsequent to December 31, 2007; or on the effectiveness of
the Company’s internal control over financial reporting as of any other date or for any
period subsequent to December 31, 2007.

     4. For purposes of this letter, we have read the 2008 minutes of the meetings of the
Board of Directors, Audit Committee and Compensation Committee of the Board of Directors of
the Company as set forth in the minutes books through February 29, 2008, officials of the
Company having advised us that the minutes of all such meetings through that date were set
forth therein, except for the meetings of the Board of Directors on February 13, 2008;
Compensation Committee on February 12, 2008; the Unanimous Written Consent of the
Compensation Committee effective February 26, 2008; the Audit Committee on February 12,
2008, and February 27, 2008; and the Nominating and Corporate Governance Committee on
February 12, 2008, for which minutes have not been approved. We also have carried out other
procedures to February 29, 2008 as follows (our work did not extend to the period from March
1, 2008 to March 3, 2008, inclusive):

     a. With respect to the period from January 1, 2008 to January 31, 2008, we have:

     (1) read the consolidated unaudited financial statements for the one month period ended
January 31st of both 2008 and 2007 furnished to us by the Company. The financial

C-1

 

information
is incomplete in that it omits the statements of stockholders’ equity and cash flows and
other
footnote disclosures. Company officials have advised us that no such financial
statements as of any date or for any period subsequent to January 31, 2008 were available;
and

     (2) inquired of Company officials who have responsibility for financial and accounting
matters as to whether the unaudited condensed consolidated financial statements referred to
under 4.a.(1) are stated on a basis substantially consistent with that of the audited
financial statements incorporated by reference in the Offering Memorandum.

     The foregoing procedures do not constitute an audit conducted in accordance with the
standards of the PCAOB. Also, they would not necessarily reveal matters of significance with
respect to comments in the following paragraphs. Accordingly, we make no representation as
to the sufficiency of the foregoing procedures for your purposes.

     5. Nothing came to our attention as a result of the foregoing procedures that caused us
to believe that at January 31, 2008 there was any change in capital stock (other than
activity under the Company’s employee and director stock purchase and option plans),
increase in long-term debt or any decrease in consolidated assets or stockholders’ equity of
the company as compared with amounts shown in the December 31, 2007 audited consolidated
balance sheet, incorporated by reference in the Offering Memorandum, or for the period from
January 1, 2008 to January 31, 2008, there were any decreases, as compared with the
corresponding period in the preceding year in consolidated revenues or increases, as
compared with the corresponding period in the preceding year, in the consolidated loss from
operations or the total or per-share amounts of consolidated net loss, except in all
instances for increases or decreases that the Offering Memorandum discloses have occurred or
may occur.

     6. As mentioned under 4.a. above, Company officials have advised us that no financial
statements as of any date or for any period subsequent to January 31, 2008 are available;
accordingly, the procedures carried out by us with respect to changes in financial statement
items after January 31, 2008 have, of necessity, been even more limited than those with
respect to the periods referred to in 4. above. We have inquired of Company officials who
have responsibility for financial and accounting matters as to whether: (i) at February 29,
2008, there was no change in capital stock (other than activity under the Company’s employee
and director stock purchase and option plans), increase in long-term debt or any decrease in
consolidated assets or stockholders’ equity of the Company as compared with the amounts
shown on the December 31, 2007 audited consolidated balance sheet incorporated by reference
in the Offering Memorandum, or (ii) for the period from January 1, 2008 to February 29,
2008, there was any decrease, as compared with the corresponding period in the preceding
year, in consolidated revenues or increases, as compared with the corresponding period in
the preceding year, in the consolidated loss from operations or the total or per-share
amounts of consolidated net loss. On the basis of these inquiries and our reading of the
minutes as described in 4. above, nothing came to our attention that caused us to believe
that there was any such increase or decrease, except in all instances for changes, increases
or decreases which the Offering Memorandum discloses have occurred or may occur.

C-2exv10w2

 

Exhibit 10.2

GOLDMAN, SACHS & CO. | ONE NEW YORK PLAZA | NEW YORK, NEW YORK 10004 | TEL: (212) 902-1000

EXECUTION COPY

March 3, 2008

To: NuVasive, Inc.

4545 Towne Centre Court

San Diego, CA 92121

Attention: Treasurer

Telephone No.: 858-909-1800

Facsimile No.: 858-909-2000

Re: Call Option Transaction (Reference No. 1626958620)

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the call option transaction entered into between Goldman, Sachs & Co. (“Bank”) and
NuVasive, Inc. (“Counterparty”) on the Trade Date specified below (the “Transaction”). This letter
agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.
This Confirmation shall replace any previous agreements and serve as the final documentation for
this Transaction.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”) are incorporated into this Confirmation. In the event of any inconsistency between the
Equity Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms
used herein have the meanings assigned to them in the Offering Memorandum dated March 3, 2008 (the “Offering Memorandum”) relating to the USD 200,000,000 principal amount of Senior Convertible Notes
due March 15, 2013 (the “Convertible Notes” and each USD 1,000 principal amount of Convertible
Notes, a “Convertible Note”) issued by Counterparty pursuant to an Indenture to be dated March 7,
2008 between Counterparty and U.S. Bank National Association, as trustee (the “Indenture"). In the
event of any inconsistency between the terms defined in the Offering Memorandum, the Indenture and
this Confirmation, this Confirmation shall govern. The parties acknowledge that this Confirmation
is entered into on the date hereof with the understanding that (i) definitions set forth in the
Indenture which are also defined herein by reference to the Indenture and (ii) sections of the
Indenture that are referred to herein will conform to the descriptions thereof in the Offering
Memorandum. If any such definitions in the Indenture or any such sections of the Indenture differ
from the descriptions thereof in the Offering Memorandum, the descriptions thereof in the Offering
Memorandum will govern for purposes of this Confirmation. The parties further acknowledge that the
Indenture section numbers used herein are based on the draft of the Indenture last reviewed by Bank
as of the date of this Confirmation, and if any such section numbers are changed in the Indenture
as executed, the parties will amend this Confirmation in good faith to preserve the intent of the
parties. For the avoidance of doubt, references to the Indenture herein are references to the
Indenture as in effect on the date of its execution and if the Indenture is amended following its
execution, any such amendment will be disregarded for purposes of this Confirmation unless the
parties agree otherwise in writing.

     Each party is hereby advised, and each such party acknowledges, that the other party has
engaged in, or refrained from engaging in, substantial financial transactions and has taken other
material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.

1. This Confirmation evidences a complete and binding agreement between Bank and Counterparty as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master
Agreement (the “Agreement”) as if Bank and Counterparty had executed an agreement in such form (but
without any Schedule except for the election of the laws of the State of New York as the governing
law) on the Trade Date. In the event of any inconsistency between provisions of that Agreement and
this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this
Confirmation relates. The parties hereby agree that no Transaction other than the Transaction to
which this Confirmation relates shall be governed by the Agreement.

 

 

	 	 	 	 	 
	2. The terms of the particular Transaction to which this Confirmation relates are as follows:
	 
	 	 	 	 
	General Terms:
	 
	 	 	 	 
	 

	 	Trade Date:
	 	March 3, 2008
	 
	 	 	 	 
	 

	 	Option Style:
	 	“Modified American”, as described under “Procedures for Exercise” below
	 
	 	 	 	 
	 

	 	Option Type:
	 	Call
	 
	 	 	 	 
	 

	 	Buyer:
	 	Counterparty
	 
	 	 	 	 
	 

	 	Seller:
	 	Bank
	 
	 	 	 	 
	 

	 	Shares:
	 	The common stock of Counterparty, par value USD 0.001 per Share (Exchange symbol
“NUVA”)
	 
	 	 	 	 
	 

	 	Number of Options:
	 	 200,000. For the avoidance of doubt, the Number of Options shall be reduced by
any Options exercised by Counterparty. In no event will the Number of Options be
less than zero.
	 
	 	 	 	 
	 

	 	Applicable Percentage:
	 	 50%
	 
	 	 	 	 
	 

	 	Option Entitlement:
	 	As of any date, a number equal to the product of the Applicable Percentage and the
Conversion Rate as of such date (as defined in the Indenture, but without regard to
any adjustments to the Conversion Rate pursuant to Section 12.05(f) or to Section
12.02 (b) of the Indenture), for each Convertible Note.
	 
	 	 	 	 
	 

	 	Strike Price:
	 	USD 44.7397
	 
	 	 	 	 
	 

	 	Premium:
	 	USD 19,895,000.00
	 
	 	 	 	 
	 

	 	Premium Payment Date:
	 	March 7, 2008
	 
	 	 	 	 
	 

	 	Exchange:
	 	The NASDAQ Global Select Market
	 
	 	 	 	 
	 

	 	Related Exchange(s):
	 	All Exchanges
	 
	 	 	 	 
	Procedures for Exercise:
	 
	 	 	 	 
	 

	 	Exercise Period(s):
	 	Notwithstanding anything to the contrary in the Equity Definitions, an Exercise
Period shall occur with respect to an Option hereunder only if such Option is an
Exercisable Option (as defined below) and the Exercise Period shall be, in
respect of any Exercisable Option, the period commencing on, and including, the
relevant Conversion Date and ending on, and including, the Scheduled Valid Day
immediately preceding the first day of the relevant Settlement Averaging Period
in respect of such Conversion Date; provided that in respect of Exercisable
Options relating to Convertible Notes for which the relevant Conversion Date
occurs on

2

 

	 	 	 	 	 
	 

	 	 	 	or after the 84th Scheduled Valid Day preceding the Expiration Date,
the final day of the Exercise Period shall be the Scheduled Valid Day immediately
preceding the Expiration Date.
	 
	 	 	 	 
	 

	 	Conversion Date:
	 	With respect to any conversion of Convertible Notes, the date on which the Holder
(as such term is defined in the Indenture) of such Convertible Notes satisfies
all of the requirements for conversion thereof as set forth in Section 12.03(b)
of the Indenture.
	 
	 	 	 	 
	 

	 	Exercisable Options:
	 	Upon occurrence of a Conversion Date, a number of Options equal to the number of
Convertible Notes surrendered to Counterparty for conversion with respect to such
Conversion Date but no greater than the Number of Options.
	 
	 	 	 	 
	 

	 	Expiration Time:
	 	The Valuation Time
	 
	 	 	 	 
	 

	 	Expiration Date:
	 	March 15, 2013, subject to earlier exercise.
	 
	 	 	 	 
	 

	 	Multiple Exercise:
	 	Applicable, as described under Exercisable Options above.
	 
	 	 	 	 
	 

	 	Automatic Exercise:
	 	Applicable; and means that in respect of an Exercise Period, a number of Options
not previously exercised hereunder equal to the number of Exercisable Options
shall be deemed to be exercised on the final day of such Exercise Period for such
Exercisable Options; provided that such Options shall be deemed exercised only to
the extent that Counterparty has provided a Notice of Exercise to Bank.
	 
	 	 	 	 
	 

	 	Notice of Exercise:
	 	Notwithstanding anything to the contrary in the Equity Definitions, in order to
exercise any Exercisable Options, Counterparty must notify Bank in writing before 5:00 p.m. (New York City time) on the Scheduled Valid Day prior to the scheduled
first day of the Settlement Averaging Period for the Exercisable Options being
exercised of (i) the number of such Options and (ii) the scheduled first day of
the Settlement Averaging Period and the scheduled Settlement Date; provided that
in respect of Exercisable Options relating to Convertible Notes with a Conversion
Date occurring on or after the 84th Scheduled Valid Day preceding the Expiration
Date, such notice may be given on or prior to the second Scheduled Valid Day
immediately preceding the Expiration Date and need only specify the number of
such Exercisable Options.
	 
	 	 	 	 
	 

	 	Valuation Time:
	 	At the close of trading of the regular trading session on the Exchange; provided
that if the principal trading session is extended, the Calculation Agent shall
determine the Valuation Time in its reasonable discretion.

3

 

	 	 	 	 	 
	 

	 	Market Disruption Event:
	 	Section 6.3(a)(ii) of the Equity Definitions is hereby amended by replacing
clause (ii) in its entirety with “(ii) an Exchange Disruption, or” and inserting
immediately following clause (iii) the phrase “; in each case that the
Calculation Agent determine is material.”
	 
	 	 	 	 
	 

	 	 	 	Section 6.3(d) of the Equity Definitions is hereby amended by deleting the
remainder of the provision following the term “Scheduled Closing Time” in the
fourth line thereof.
	 
	 	 	 	 
	Settlement Terms:
	 
	 	 	 	 
	 

	 	Settlement Method:
	 	Net Share Settlement
	 
	 	 	 	 
	 

	 	Net Share Settlement:
	 	Bank will deliver to Counterparty, on the relevant Settlement Date, a number of
Shares equal to the Net Shares in respect of any Exercisable Option exercised or
deemed exercised hereunder. In no event will the Net Shares be less than zero.
	 
	 	 	 	 
	 

	 	 	 	Bank will deliver cash in lieu of any fractional Shares to be delivered with
respect to any Net Shares valued at the Relevant Price for the last Valid Day of
the Settlement Averaging Period.
	 
	 	 	 	 
	 

	 	Net Shares:
	 	In respect of any Exercisable Option exercised or deemed exercised, a number of
Shares equal to the lesser of (i) (A) the Option Entitlement multiplied by (B)
the sum of the quotients, for each Valid Day during the Settlement Averaging
Period for such Exercisable Option, of (x) the Relevant Price on such Valid Day
less the Strike Price, divided by (y) such Relevant Price, divided by (C) the
number of Valid Days in the Settlement Averaging Period; provided, however, that
if the calculation contained in clause (x) above results in a negative number,
such number shall be replaced with the number “zero” and (ii) a number of Shares
equal to the product of (A) the Applicable Percentage and (B) Net Convertible
Obligation for such Exercisable Option divided by the Obligation Value Price.
	 
	 	 	 	 
	 

	 	Net Convertible Obligation:
	 	With respect to an Exercisable Option, (i) the Total Convertible Obligation for
such Exercisable Option minus (ii) USD 1,000.
	 
	 	 	 	 
	 

	 	Total Convertible Obligation:
	 	With respect to an Exercisable Option, (i) the Conversion Rate multiplied by (ii)
the Obligation Value Price.
	 
	 	 	 	 
	 

	 	Obligation Value Price:
	 	The opening price as displayed under the heading “Op” on Bloomberg page NUVA.UQ
<equity> (or any successor thereto) on the Settlement Date.
	 
	 	 	 	 
	 

	 	Valid Day:
	 	A day on which (i) trading in the Shares generally occurs on the Exchange or, if
the Shares are not then listed on the Exchange, on the principal other U.S.
national or

4

 

	 	 	 	 	 
	 

	 	 	 	regional securities exchange on which the Shares are then listed or,
if the Shares are not then listed on a U.S. national or regional securities
exchange, on the principal other market on which the Shares are then traded and
(ii) there is no Market Disruption Event.
	 
	 	 	 	 
	 

	 	Scheduled Valid Day:
	 	A day on which trading in the Shares is scheduled to occur on the principal U.S.
national or regional securities exchange or market on which the Shares are listed
or admitted for trading.
	 
	 	 	 	 
	 

	 	Relevant Price:
	 	On any Valid Day, the per Share volume-weighted average price as displayed under
the heading “Bloomberg VWAP” on Bloomberg page NUVA.UQ <equity> AQR (or any
successor thereto) in respect of the period from the scheduled opening time of
the Exchange to the Scheduled Closing Time of the Exchange on such Valid Day (or
if such volume-weighted average price is unavailable, the market value of one
Share on such Valid Day, as determined by the Calculation Agent using a
volume-weighted method).
	 
	 	 	 	 
	 

	 	Settlement Averaging Period:
	 	For any Exercisable Option, (x) if Counterparty has delivered a Notice of
Exercise to Bank with respect to such Exercisable Option with a Conversion Date
occurring prior to the 84th Scheduled Valid Day preceding the Expiration Date,
the eighty (80) consecutive Valid Days commencing on and including the third
Scheduled Valid Day following such Conversion Date, or (y) if Counterparty has,
on or following the 84th Scheduled Valid Day preceding the Expiration Date,
delivered a Notice of Exercise to Bank with respect to such Exercisable Option
with a Conversion Date occurring on or following the 84th Scheduled Valid Day
preceding the Expiration Date, the eighty (80) consecutive Valid Days commencing
on, and including, the eighty-second (82nd) Scheduled Valid Day immediately prior
to the Expiration Date.
	 
	 	 	 	 
	 

	 	Settlement Date:
	 	For any Exercisable Option, the third Valid Day immediately following the final
Valid Day of the Settlement Averaging Period with respect to such Exercisable
Options.
	 
	 	 	 	 
	 

	 	Settlement Currency:
	 	USD
	 
	 	 	 	 
	 

	 	Other Applicable Provisions:
	 	The provisions of Sections 9.1(c), 9.8, 9.9, 9.11 and 10.5 of the Equity
Definitions will be applicable, except that all references in such provisions to
“Physically-settled” shall be read as references to “Net Share Settled”. “Net
Share Settled” in relation to any Option means that Net Share Settlement is
applicable to that Option.
	 
	 	 	 	 
	 

	 	Restricted Certificated Shares:
	 	Notwithstanding anything to the contrary in the Equity Definitions, Bank may, in
whole or in part, deliver Shares in certificated form representing the Number of
Shares to be Delivered or the Payment Obligation to

5

 

	 	 	 	 	 
	 

	 	 	 	Counterparty in lieu of
delivery through the Clearance System.
	 
	 	 	 	 
	 

	 	Representation and Agreement:
	 	Notwithstanding Section 9.11 of the Equity Definitions, the parties acknowledge
that any Shares delivered to Counterparty shall be, upon delivery, subject to
restrictions and limitations arising from Counterparty’s status as issuer of the
Shares under applicable securities laws.
	 
	 	 	 	 
	3. Additional Terms applicable to the Transaction:
	 
	 	 	 	 
	 

	 	Adjustments applicable to the Transaction:	 	 
	 
	 	 	 	 
	 

	 	Potential Adjustment Events:
	 	Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential Adjustment
Event” means an occurrence of any event or condition, as set forth in Section 12.05
of the Indenture that would result in an adjustment to the Conversion Rate of the
Convertible Notes; provided that in no event shall there be any adjustment hereunder
as a result of an adjustment to the Conversion Rate pursuant to Section 12.05(f) or
Section 12.02(b) of the Indenture.
	 
	 	 	 	 
	 

	 	Method of Adjustment:
	 	Calculation Agent Adjustment, and means that, notwithstanding Section 11.2(c) of the
Equity Definitions, upon any adjustment to the Conversion Rate of the Convertible
Notes pursuant to the Indenture (other than Section 12.05(f) and Section 12.02(b) of
the Indenture), the Calculation Agent will make a corresponding adjustment to any
one or more of the Strike Price, Number of Options, the Option Entitlement and any
other variable relevant to the exercise, settlement or payment for the Transaction.
	 
	 	 	 	 
	Extraordinary Events applicable to the Transaction:
	 
	 	 	 	 
	 

	 	Merger Events:
	 	Applicable; provided that notwithstanding Section 12.1(b) of the Equity Definitions,
a “Merger Event” means the occurrence of any event or condition set forth in Section 12.11 of the Indenture.
	 
	 	 	 	 
	 

	 	Tender Offers:
	 	Applicable; provided that notwithstanding Section 12.1(d) of the Equity Definitions,
a “Tender Offer” means the occurrence of any event or condition set forth in Section 12.05(e) of the Indenture.
	 
	 	 	 	 
	 

	 	Consequence of Merger Events/Tender
Offers:
	 	Notwithstanding Section 12.2 and Section 12.3 of the Equity Definitions, upon the
occurrence of a Merger Event or a Tender Offer, the Calculation Agent shall make a
corresponding adjustment in respect of any adjustment under the Indenture to any one
or more of the nature of the Shares, Strike Price, Number of Options, the Option
Entitlement and any other variable relevant to the exercise, settlement or payment
for the Transaction; provided, however, that such adjustment shall be made without
regard to any adjustment to the Conversion Rate for the issuance of additional
shares as set forth in Section 12.02(b) of the

6

 

	 	 	 	 	 
	 

	 	 	 	Indenture; provided further that if,
with respect to a Merger Event or a Tender Offer, the consideration for the Shares
includes (or, at the option of a holder of Shares, may include) shares of an entity
or person not organized under the laws of the United States, any State thereof or
the District of Columbia,” Cancellation and Payment shall apply.
	 
	 	 	 	 
	 

	 	Nationalization, Insolvency or Delisting:
	 	Cancellation and Payment (Calculation Agent Determination); provided that, in
addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it
will also constitute a Delisting if the Exchange is located in the United States and
the Shares are not immediately re-listed, re-traded or re-quoted on any of the New
York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market or
The NASDAQ Global Market (or their respective successors); if the Shares are
immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange,
the American Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global
Market (or their respective successors), such exchange or quotation system shall
thereafter be deemed to be the Exchange.
	 
	 	 	 	 
	 

	 	Additional Disruption Events:	 	 
	 
	 	 	 	 
	 

	 	Change in Law:
	 	Applicable
	 
	 	 	 	 
	 

	 	Failure to Deliver:
	 	Applicable
	 
	 	 	 	 
	 

	 	Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	Hedging Disruption:
	 	Applicable
	 
	 	 	 	 
	 

	 	Increased Cost of Hedging:
	 	Applicable
	 
	 	 	 	 
	 

	 	Determining Party:
	 	For all applicable Extraordinary Events, Bank; provided that Bank shall make all
determinations required pursuant to this Transaction, in a commercially
reasonable manner, and such determinations shall be binding absent manifest error.
	 
	 	 	 	 
	Non-Reliance:	 	Applicable
	 
	 	 	 	 
	Agreements and Acknowledgements
Regarding Hedging Activities:	 	Applicable
	 
	 	 	 	 
	Additional Acknowledgments:	 	Applicable
	 
	 	 	 	 
	4. Calculation Agent:	 	Bank; provided that Bank shall make all calculations, adjustments and
determinations required pursuant to this Transaction, in a commercially
reasonable manner, and such calculations, adjustments and determinations shall be
binding absent manifest error.

7

 

5. Account Details:

	 	(a)	 	Account for payments to Counterparty:
	 
	 	 	 	  To be provided by Counterparty
	 
	 	 	 	Account for delivery of Shares to Counterparty:
	 
	 	 	 	  To be provided by Counterparty.

	 	(b)	 	Account for payments to Bank:
	 
	 	 	 	  Chase Manhattan Bank New York

  For A/C Goldman, Sachs & Co.

  A/C #930-1-011483

  ABA: 021-000021
	 
	 	 	 	Account for delivery of Shares from Bank:
	 
	 	 	 	  To be provided by Bank.

6. Offices:

The Office of Counterparty for the Transaction is: Inapplicable, Counterparty is not a Multibranch
Party.

The Office of Bank for the Transaction is: One New York Plaza, New York, New York 10004

7. Notices: For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Counterparty:
	 
	 	 	 	NuVasive, Inc.

4545 Towne Centre Court

San Diego, CA 92121

Attention: Treasurer

Telephone No.: 858-909-1800

Facsimile No.: 858-909-2000

	 	(b)	 	Address for notices or communications to Bank:
	 
	 	 	 	Goldman, Sachs & Co.

One New York Plaza

New York, NY 10004

Attn: Equity Operations: Options and Derivatives

Telephone: (212) 902-1981

Facsimile: (212) 428-1980/1983

	 
	 	 	 	With a copy to:
	 
	 	 	 	Attn: Tracey McCabe

          Equity Capital Markets

Telephone: (212) 357-0428

Facsimile: (212) 902-3000

8. Representations, Warranties and Agreements of Counterparty and Bank

	 	(a)	 	The representations and warranties of Counterparty set forth in Section 1 of
the Purchase Agreement (the “Purchase Agreement”) dated as of March 3, 2008 between

8

 

Counterparty and Goldman, Sachs & Co. and J.P. Morgan Securities Inc., as the
Initial Purchasers are true and correct and are hereby deemed to be repeated to
Bank as if set forth herein. Counterparty hereby further represents and warrants
to Bank that on the Trade Date and the Premium Payment Date:

	 	(i)	 	Counterparty has all necessary corporate power and
authority to execute, deliver and perform its obligations in respect of
this Transaction; such execution, delivery and performance have been duly
authorized by all necessary corporate action on Counterparty’s part; and
this Confirmation has been duly and validly executed and delivered by
Counterparty and constitutes its valid and binding obligation, enforceable
against Counterparty in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
and similar laws affecting creditors’ rights and remedies generally, and
subject, as to enforceability, to general principles of equity, including
principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in
equity) and except that rights to indemnification and contribution
hereunder may be limited by federal or state securities laws or public
policy relating thereto.
	 
	 	(ii)	 	Neither the execution and delivery of this
Confirmation nor the incurrence or performance of obligations of
Counterparty hereunder will conflict with or result in a breach of the
certificate of incorporation or by-laws (or any equivalent documents) of
Counterparty, or any applicable law or regulation, or any order, writ,
injunction or decree of any court or governmental authority or agency
applicable to Counterparty, or any agreement or instrument to which
Counterparty or any of its subsidiaries is a party or by which
Counterparty or any of its subsidiaries is bound or to which Counterparty
or any of its subsidiaries is subject, or constitute a default under, or
result in the creation of any lien under, any such agreement or
instrument.
	 
	 	(iii)	 	No consent, approval, authorization, or order of, or
filing with, any governmental agency or body or any court is required in
connection with the execution, delivery or performance by Counterparty of
this Confirmation, except such as have been obtained or made and such as
may be required under the Securities Act of 1933, as amended (the
“Securities Act”) or state securities laws.
	 
	 	(iv)	 	Counterparty is not and will not be required to
register as an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.
	 
	 	(v)	 	It is an “eligible contract participant” (as such
term is defined in Section 1a(12) of the Commodity Exchange Act, as
amended).
	 
	 	(vi)	 	Neither Counterparty nor any “affiliate” or
“affiliated purchaser” (each as defined in Rule 10b-18 of the Exchange Act
(“Rule 10b-18”)) shall directly or indirectly (including, without
limitation, by means of any cash-settled or other derivative instrument
other than the Transaction) purchase, offer to purchase, place any bid or
limit order that would effect a purchase of, or commence any tender offer
relating to, any Shares (or an equivalent interest, including a unit of
beneficial interest in a trust or limited partnership or a depository
share) or any security convertible into or exchangeable or exercisable for
Shares.
	 
	 	(vii)	 	Without limiting the generality of Section 13.1 of
the Equity Definitions, Counterparty acknowledges that Bank is not making
any representations or warranties with respect to the treatment of the
Transaction under any accounting

9

 

	 	 	 	standards including FASB Statements 128, 133 ( as amended), 149 or 150,
EITF Issue No. 00-19, 01-6 or 03-6 (or any successor issue statements) or
under FASB’s Liabilities & Equity Project.
	 
	 	(viii)	 	Without limiting the generality of Section 3(a)(iii) of the Agreement,
the Transaction will not violate Rule 13e-1 or Rule 13e-4 under the
Exchange Act.
	 
	 	(ix)	 	Prior to the Trade Date, Counterparty shall deliver
to Bank a resolution of Counterparty’s board of directors authorizing the
Transaction and such other certificate or certificates as Bank shall
reasonably request.
	 
	 	(x)	 	Counterparty is not “insolvent” (as such term is
defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the
United States Code) (the “Bankruptcy Code”)) and Counterparty would be
able to purchase the Shares hereunder in compliance with the laws of the
jurisdiction of Counterparty’s incorporation.
	 
	 	(xi)	 	Counterparty understands no obligations of Bank to it
hereunder will be entitled to the benefit of deposit insurance and that
such obligations will not be guaranteed by any affiliate of Bank or any
governmental agency.

	 	(b)	 	Each of Bank and Counterparty acknowledges that the offer and sale of the
Transaction to it is intended to be exempt from registration under the Securities Act,
by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and warrants
to Bank that (i) it has the financial ability to bear the economic risk of its
investment in the Transaction and is able to bear a total loss of its investment and
its investments in and liabilities in respect of the Transaction, which it understands
are not readily marketable, are not disproportionate to its net worth, and it is able
to bear any loss in connection with the Transaction, including the loss of its entire
investment in the Transaction, (ii) it is an “accredited investor” as that term is
defined in Regulation D as promulgated under the Securities Act, (iii) it is entering
into the Transaction for its own account and without a view to the distribution or
resale thereof, (iv) the assignment, transfer or other disposition of the Transaction
has not been and will not be registered under the Securities Act and is restricted
under this Confirmation, the Securities Act and state securities laws, and (v) its
financial condition is such that it has no need for liquidity with respect to its
investment in the Transaction and no need to dispose of any portion thereof to satisfy
any existing or contemplated undertaking or indebtedness and is capable of assessing
the merits of and understanding (on its own behalf or through independent professional
advice), and understands and accepts, the terms, conditions and risks of the
Transaction.
	 
	 	(c)	 	Each party acknowledges and agrees to be bound by the Conduct Rules of the
National Association of Securities Dealers, Inc. applicable to transactions in
options, and further agrees not to violate the position and exercise limits set forth
therein.
	 
	 	(d)	 	Counterparty represents and warrants that it has received, read and
understands the OTC Options Risk Disclosure Statement and a copy of the most recent
disclosure pamphlet prepared by The Options Clearing Corporation entitled
“Characteristics and Risks of Standardized Options".

9. Other Provisions:

	 	(a)	 	Opinions. Counterparty shall deliver to Bank an opinion of counsel,
dated as of the Trade Date, with respect to the matters set forth in Sections 8(a)(i)
through (iii) of this Confirmation; provided with respect to “any agreement or
instrument” referred to in Section 8(a)(ii), such opinion shall only refer to
agreements and instruments filed as exhibits to Counterparty’s Annual Report on Form
10-K for the fiscal year ended

10

 

	 	 	 	December 31, 2007, as updated by any exhibits to Current Reports on Form 8-K filed
on January 11, 2008, January 31, 2008 and February 29, 2008.
	 
	 	(b)	 	Repurchase Notices. Counterparty shall, on any day on which
Counterparty effects any repurchase of Shares, promptly give Bank a written notice of
such repurchase (a “Repurchase Notice”) on such day if following such repurchase, the
quotient of (x) the product of (a) the Number of Options and (b) the Option
Entitlement divided by (y) the number of Counterparty’s outstanding Shares (such
quotient expressed as a percentage, the “Option Equity Percentage”) would be (i)
greater than 7.5% or (ii) 0.5% greater than the Option Equity Percentage included in
the immediately preceding Repurchase Notice. Counterparty agrees to indemnify and
hold harmless Bank and its affiliates and their respective officers, directors,
employees, affiliates, advisors, agents and controlling persons (each, an “Indemnified
Person”) from and against any and all losses (including losses relating to Bank’s
hedging activities as a consequence of becoming, or of the risk of becoming, a Section
16 “insider”, including without limitation, any forbearance from hedging activities or
cessation of hedging activities and any losses in connection therewith with respect to
this Transaction), claims, damages, judgments, liabilities and expenses (including
reasonable attorney’s fees), joint or several, which an Indemnified Person may become
subject to, as a result of Counterparty’s failure to provide Bank with a Repurchase
Notice on the day and in the manner specified in this paragraph, and to reimburse,
within 30 days, upon written request, each of such Indemnified Persons for any
reasonable legal or other expenses incurred in connection with investigating,
preparing for, providing testimony or other evidence in connection with or defending
any of the foregoing. If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against the
Indemnified Person as a result of Counterparty’s failure to provide Bank with a
Repurchase Notice in accordance with this paragraph, such Indemnified Person shall
promptly notify Counterparty in writing, and Counterparty, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified
Person to represent the Indemnified Person and any others Counterparty may designate
in such proceeding and shall pay the fees and expenses of such counsel related to such
proceeding. Counterparty shall not be liable for any settlement of any proceeding
contemplated by this paragraph that is effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff,
Counterparty agrees to indemnify any Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. Counterparty shall not, without
the prior written consent of the Indemnified Person, effect any settlement of any
pending or threatened proceeding contemplated by this paragraph that is in respect of
which any Indemnified Person is or could have been a party and indemnity could have
been sought hereunder by such Indemnified Person, unless such settlement includes an
unconditional release of such Indemnified Person from all liability on claims that are
the subject matter of such proceeding on terms reasonably satisfactory to such
Indemnified Person. If the indemnification provided for in this paragraph is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then Counterparty hereunder, in lieu of
indemnifying such Indemnified Person thereunder, shall contribute to the amount paid
or payable by such Indemnified Person as a result of such losses, claims, damages or
liabilities. The remedies provided for in this paragraph (c) are not exclusive and
shall not limit any rights or remedies which may otherwise be available to any
Indemnified Party at law or in equity. The indemnity and contribution agreements
contained in this paragraph shall remain operative and in full force and effect
regardless of the termination of this Transaction.
	 
	 	(c)	 	Regulation M. Counterparty is not on the date hereof engaged in a
distribution, as such term is used in Regulation M under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), of any securities of Counterparty, other
than a distribution meeting the requirements of the exception set forth in Rules
101(b)(10) and 102(b)(7) of

11

 

	 	 	 	Regulation M. Counterparty shall not, until the second Scheduled Trading Day
immediately following the Trade Date, engage in any such distribution.
	 
	 	(d)	 	No Manipulation. Counterparty is not entering into this Transaction
(i) on the basis of, and it is not aware of, any material non-public information with
respect to itself or the Shares (ii) in anticipation of, in connection with, or to
facilitate, a distribution of its securities, a self tender offer or a third-party
tender offer or (iii) to create actual or apparent trading activity in the Shares (or
any security convertible into or exchangeable for the Shares) or to raise or depress
or otherwise manipulate the price of the Shares (or any security convertible into or
exchangeable for the Shares) or otherwise in violation of the Exchange Act.
	 
	 	(e)	 	Transfer or Assignment. (i) Counterparty shall have the right to
transfer or assign its rights and obligations hereunder with respect to all, but not
less than all, of the Options hereunder (such Options, the “Transfer Options”);
provided that such transfer or assignment shall be subject to reasonable conditions
that Bank may impose, including but not limited, to the following conditions:

(A) With respect to any Transfer Options, Counterparty shall not be released
from its notice and indemnification obligations pursuant to Section 9(b) or any
obligations under Section 9(o) or 9(t) of this Confirmation;

(B) Any Transfer Options shall only be transferred or assigned to a third party
that is a U.S. person (as defined in the Internal Revenue Code of 1986, as
amended);

(C) Such transfer or assignment shall be effected on terms, including any
reasonable undertakings by such third party (including, but not limited to, an
undertaking with respect to compliance with applicable securities laws in a
manner that, in the reasonable judgment of Bank, will not expose Bank to
material risks under applicable securities laws) and execution of any
documentation and delivery of legal opinions with respect to securities laws
and other matters by such third party and Counterparty, as are requested and
reasonably satisfactory to Bank;

(D) Bank will not, as a result of such transfer and assignment, be required to
pay the transferee on any payment date an amount under Section 2(d)(i)(4) of
the Agreement greater than an amount that Bank would have been required to pay
to Counterparty in the absence of such transfer and assignment;

(E) An Event of Default, Potential Event of Default or Termination Event will
not occur as a result of such transfer and assignment;

(F) Without limiting the generality of clause (B), Counterparty shall cause the
transferee to make such Payee Tax Representations and to provide such tax
documentation as may be reasonably requested by Bank to permit Bank to
determine that results described in clauses (D) and (E) will not occur upon or
after such transfer and assignment; and

(G) Counterparty shall be responsible for all reasonable costs and expenses,
including reasonable counsel fees, incurred by Bank in connection with such
transfer or assignment.

(ii) Bank may, without Counterparty’s consent, transfer or assign all or any part
of its rights or obligations under the Transaction to any third party with a rating
for its long term, unsecured and unsubordinated indebtedness equal to or better
than the lesser of (1) the credit rating of The Goldman Sachs Group, Inc at the
time of the transfer and (2) A- by Standard and Poor’s Rating Group, Inc. or its
successor (“S&P”), or A3 by Moody’s Investor Service, Inc. (“Moody’s”) or, if
either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or
better by a substitute agency rating mutually agreed by Counterparty and Bank, or
to any of its affiliates whose obligations hereunder would be guaranteed by The
Goldman Sachs Group, Inc. If after Bank’s commercially reasonable efforts, Bank is
unable to effect such a transfer or assignment on pricing terms reasonably

12

 

acceptable to Bank and within a time period reasonably acceptable to Bank of a
sufficient number of Options to reduce (1) Bank Group’s “beneficial ownership”
(within the meaning of Section 13 of the Exchange Act and rules promulgated
thereunder) to 8.0% of Counterparty’s outstanding Shares or less or (2) the Option
Equity Percentage to 14.5% or less, Bank may designate any Exchange Business Day as
an Early Termination Date with respect to a portion (the “Terminated Portion”) of
this Transaction, such that (1) Bank Group’s “beneficial ownership” following such
partial termination will be equal to or less than 8.0% or (2) the Option Equity
Percentage following such partial termination will be equal to or less than 14.5%.
In the event that Bank so designates an Early Termination Date with respect to a
portion of this Transaction, a payment shall be made pursuant to Section 6 of the
Agreement as if (1) an Early Termination Date had been designated in respect of a
Transaction having terms identical to this Transaction and a Number of Options
equal to the Terminated Portion, (2) Counterparty shall be the sole Affected Party
with respect to such partial termination and (3) such Transaction shall be the only
Terminated Transaction (and, for the avoidance of doubt, the provisions of Section
9(l) shall apply to any amount that is payable by Bank to Counterparty pursuant to
this sentence as if Counterparty was not the Affected Party). “Bank Group” means
Bank or any affiliate of Bank subject to aggregation with Bank under such Section
13 of the Exchange Act and rules promulgated thereunder and all persons who may
form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with
Bank. Bank shall provide Counterparty with prompt written notice of assignment made
pursuant to this Section 9(e)(ii), including the identity of the third party to
whom such assignment is made.

	 	(f)	 	Staggered Settlement. Bank may, by notice to Counterparty on or
prior to any Settlement Date (a “Nominal Settlement Date”), in a commercially
reasonable manner, elect to deliver the Shares on two or more dates (each, a
“Staggered Settlement Date”) as follows:

	 	(a)	 	in such notice, Bank will specify to Counterparty the related
Staggered Settlement Dates (which it shall choose in a commercially reasonable
manner, the last of which will be no later than the twentieth (20th) Exchange
Business Day following such Nominal Settlement Date) and the number of Shares
that it will deliver on each Staggered Settlement Date;
	 
	 	(b)	 	the aggregate number of Shares that Bank will deliver to
Counterparty hereunder on all such Staggered Settlement Dates will equal the
number of Shares that Bank would otherwise be required to deliver on such
Nominal Settlement Date; and
	 
	 	(c)	 	if the Net Share Settlement terms set forth above were to
apply on the Nominal Settlement Date, then the Net Share Settlement terms will
apply on each Staggered Settlement Date, except that the Net Shares will be
allocated among such Staggered Settlement Dates as specified by Bank in the
notice referred to in clause (a) above.

	 	(g)	 	[Reserved.]
	 
	 	(h)	 	[Reserved.]
	 
	 	(i)	 	Additional Termination Events. (i) Notwithstanding anything to the
contrary in this Confirmation if an event of default with respect to Counterparty
shall occur under the terms of the Convertible Notes as set forth in Section 5.01 of
the Indenture, then such event of default shall constitute an Additional Termination
Event applicable to the Transaction and, with respect to such event of default (A)
Counterparty shall be deemed to be the sole Affected Party and the Transaction shall
be the sole Affected Transaction

13

 

and (B) Bank shall be the party entitled to designate an Early Termination Date
pursuant to Section 6(b) of the Agreement.

(ii) Notwithstanding anything to the contrary in this Confirmation, the giving of
any Notice of Exercise shall constitute an Additional Termination Event hereunder
with respect to the number, if any, of Exercisable Options specified in such
Notice of Exercise as corresponding to a conversion of Convertible Notes in
compliance with Section 12.02(b) of the Indenture. Upon receipt of any such
Notice, Bank shall designate an Exchange Business Day as an Early Termination Date
(such day to occur as close as practicable, in Bank’s commercially reasonable
judgment, to the settlement date of the relevant Convertible Notes), with respect
to the portion of this Transaction corresponding to number of such Exercisable
Options so specified. Any payment hereunder with respect to such termination
shall be calculated pursuant to Section 6 of the Agreement; provided that for the
purposes of such calculation, (A) Counterparty shall be the sole Affected Party
with respect to such Additional Termination Event, (B) Bank shall be the party
entitled to designate an Early Termination Date pursuant to Section 6(b) of the
Agreement; and (C) for the avoidance of doubt, in determining the amount payable
pursuant to Section 6 of the Agreement, the Calculation Agent (i) shall take into
account the time value of this Transaction with respect to the Expiration Date and
(ii) shall not take into account any adjustments to the Option Entitlement that
result from corresponding adjustments to the Conversion Rate pursuant to Section
12.02(b) of the Indenture; provided further that (A) in case of a partial
termination, an Early Termination Date shall be designated in respect of a
Transaction having terms identical to this Transaction and a Number of Options
equal to the terminated portion and such Transaction shall be the only Terminated
Transaction; (B) any amount payable by Bank to Counterparty shall be satisfied
solely by delivery by Bank to Counterparty of a number of Shares and cash in lieu
of a fractional share equal to such amount calculated pursuant to Section 6
divided by a price per Share determined by the Calculation Agent; and (C) the
number of Shares deliverable in respect of such early termination by Bank to
Counterparty shall not be greater than the product of (x) the Applicable
Percentage and (y) the excess of (a) the total number of Shares underlying the
corresponding Convertible Notes (including the number of Additional Shares (as
defined in the Indenture) resulting from any adjustment set forth in Section
12.02(b) of the Indenture) deliverable with respect to such Convertible Notes over
(b) the number of Shares equal in value to the aggregate principal amount of the
corresponding Convertible Notes, as determined by the Calculation Agent in its
sole reasonable discretion.

	 	(j)	 	Amendments to Equity Definitions. (i) Section 12.6(a)(ii) of the
Equity Definitions is hereby amended by (1) deleting from the fourth line thereof the
word “or” after the word “official” and inserting a comma therefor, and (2) deleting
the semi-colon at the end of subsection (B) thereof and inserting the following words
therefor “or (C) at Bank’s option, the occurrence of any of the events specified in
Section 5(a)(vii)(1) through (9) of the ISDA Master Agreement with respect to that
Issuer.”

(ii) Section 12.9(b)(i) of the Equity Definitions is hereby amended by (1)
replacing “either party may elect” with “Bank may elect” and (2) replacing “notice
to the other party” with “notice to Counterparty” in the first sentence of such
section.

	 	(k)	 	Setoff and No Collateral. Notwithstanding any provision of the
Agreement, the Confirmation or the Equity Definitions or any other agreement between
the parties to the contrary, the obligations of Company hereunder are not secured by
any collateral. In addition to and without limiting any rights of set-off that a party
hereto may have as a matter of law, pursuant to contract or otherwise, upon the
occurrence of an Early Termination Date, Bank (and only Bank) shall have the right to
set off any obligation that it may have to Counterparty under this Confirmation,
including without limitation any obligation to make any payment of cash or delivery of
Shares to Counterparty, against any obligation Counterparty may have to Bank under any
other agreement

14

 

between Bank and Counterparty relating to Shares (each such contract or agreement,
a “Separate Agreement”), including without limitation any obligation to make a
payment of cash or a delivery of Shares or any other property or securities. For
this purpose, Bank shall be entitled to convert any obligation (or the relevant
portion of such obligation) denominated in one currency into another currency at
the rate of exchange at which it would be able to purchase the relevant amount of
such currency, and to convert any obligation to deliver any non-cash property into
an obligation to deliver cash in an amount calculated by reference to the market
value of such property as of the Early Termination Date, as determined by the
Calculation Agent in its sole discretion; provided that in the case of a set-off of
any obligation to release or deliver assets against any right to receive fungible
assets, such obligation and right shall be set off in kind and; provided further
that in determining the value of any obligation to deliver Shares, the value at any
time of such obligation shall be determined by reference to the market value of the
Shares at such time, as determined in good faith by the Calculation Agent. If an
obligation is unascertained at the time of any such set-off, the Calculation Agent
may in good faith estimate the amount or value of such obligation, in which case
set-off will be effected in respect of that estimate, and the relevant party shall
account to the other party at the time such obligation or right is ascertained. For
the avoidance of doubt and notwithstanding anything to the contrary provided in
this Section 9(k), in the event of bankruptcy or liquidation of Counterparty
neither party shall have the right to set off any obligation that it may have to
the other party under this Transaction against any obligation such other party may
have to it, whether arising under the Agreement, this Confirmation or any other
agreement between the parties hereto, by operation of law or otherwise.

	 	(l)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events. If in respect of this Transaction, an amount is payable by
Bank to Counterparty (i) pursuant to Section 12.2, 12.3, 12.6, 12.7 or Section 12.9 of
the Equity Definitions or (ii) pursuant to Sections 6(d) and 6(e) of the Agreement (a
“Payment Obligation”), Counterparty may request Bank to satisfy any such Payment
Obligation by the Share Termination Alternative (as defined below) (except that
Counterparty shall not make such an election in the event of a Nationalization,
Insolvency, a Merger Event or Tender Offer, in each case, in which the consideration
to be paid to holders of Shares consists solely of cash, or an Event of Default in
which Counterparty is the Defaulting Party or a Termination Event in which
Counterparty is the Affected Party, other than an Event of Default of the type
described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a
Termination Event of the type described in Section 5(b) of the Agreement in each case
that resulted from an event or events outside Counterparty’s control) and shall give
irrevocable telephonic notice to Bank, confirmed in writing within one Currency
Business Day, no later than 12:00 p.m. New York local time on the Merger Date, the
Announcement Date (in the case of Nationalization, Insolvency or Delisting), the Early
Termination Date or, in the case of an Additional Disruption Event, the date of
cancellation, as applicable; provided that if Counterparty does not validly request
Bank to satisfy its Payment Obligation by the Share Termination Alternative, Bank
shall have the right, in its sole discretion, to satisfy its Payment Obligation by the
Share Termination Alternative, notwithstanding Counterparty’s election to the
contrary.

	 	 	 	 	 
	 

	 	Share Termination Alternative:
	 	Applicable and means that Bank
shall deliver to Counterparty the Share Termination Delivery Property on, or
within a commercially reasonable period of time after, the date when the
Payment Obligation would otherwise be due pursuant to Section 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions or Sections 6(d) and 6(e) of the
Agreement, as applicable (the “Share Termination Payment Date”), in
satisfaction of the Payment Obligation in the
manner reasonably requested by
Counterparty free of payment.

15

 

	 	 	 	 	 
	 

	 	Share Termination Delivery Property:
	 	A number of Share Termination
Delivery Units, as calculated by the Calculation Agent, equal to the Payment
Obligation divided by the Share Termination Unit Price. The Calculation Agent
shall adjust the Share Termination Delivery Property by replacing any
fractional portion of a security therein with an amount of cash equal to the
value of such fractional security based on the values used to calculate the
Share Termination Unit Price.
	 
	 	 	 	 
	 

	 	Share Termination Unit Price:
	 	The value to Bank of property
contained in one Share Termination Delivery Unit, as determined by the
Calculation Agent in its discretion by commercially reasonable means and
notified by the Calculation Agent to Bank at the time of notification of the
Payment Obligation. For the avoidance of doubt, the parties agree that in
determining the Share Termination Delivery Unit Price the Calculation Agent
may consider the purchase price paid in connection with the purchase of Share
Termination Delivery Property.
	 
	 	 	 	 
	 

	 	Share Termination Delivery Unit:
	 	One Share or, if a Merger Event
has occurred and a corresponding adjustment to this Transaction has been made,
a unit consisting of the number or amount of each type of property received by
a holder of one Share (without consideration of any requirement to pay cash or
other consideration in lieu of fractional amounts of any securities) in such
Merger Event, as determined by the Calculation Agent.
	 
	 	 	 	 
	 

	 	Failure to Deliver:
	 	Applicable
	 
	 	 	 	 
	 

	 	Other applicable provisions:
	 	If Share Termination Alternative is
applicable, the provisions of Sections 9.8, 9.9, 9.11 and 10.5 (as modified
above) of the Equity Definitions will be applicable, except that all
references in such provisions to “Physically-settled” shall be read as
references to “Share Termination Settled” and all references to “Shares” shall
be read as references to “Share Termination Delivery Units”. “Share
Termination Settled” in relation to this Transaction means that Share
Termination Alternative is applicable to this Transaction.

16

 

	 	(m)	 	Governing Law. New York law (without reference to choice of law
doctrine other than Title 14 of Article 5 of the New York General Obligations Law).
	 
	 	(n)	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in respect of
any suit, action or proceeding relating to this Transaction. Each party (i) certifies
that no representative, agent or attorney of either party has represented, expressly
or otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other party have been induced to enter into this Transaction, as applicable, by, among
other things, the mutual waivers and certifications provided herein.
	 
	 	(o)	 	Registration. Counterparty hereby agrees that if, in the good faith
reasonable judgment of Bank, the Shares (“Hedge Shares”) acquired by Bank for the
purpose of hedging its obligations pursuant to this Transaction cannot be sold in the
public market by Bank without registration under the Securities Act, Counterparty
shall, at its election, either (i) in order to allow Bank to sell the Hedge Shares in
a registered offering, make available to Bank an effective registration statement
under the Securities Act and enter into an agreement, in form and substance
satisfactory to Bank, substantially in the form of an underwriting agreement for a
registered secondary offering; provided, however, that if Bank, in its sole reasonable
discretion, is not satisfied with access to due diligence materials, the results of
its due diligence investigation, or the procedures and documentation for the
registered offering referred to above, then clause (ii) or clause (iii) of this
paragraph shall apply at the election of Counterparty, (ii) in order to allow Bank to
sell the Hedge Shares in a private placement, enter into a private placement agreement
substantially similar to private placement purchase agreements customary for private
placements of equity securities, in form and substance satisfactory to Bank (in which
case, the Calculation Agent shall make any adjustments to the terms of this
Transaction that are necessary, in its reasonable judgment, to compensate Bank for any
discount from the public market price of the Shares incurred on the sale of Hedge
Shares in a private placement), or (iii) purchase the Hedge Shares from Bank at the
Reference Price on such Exchange Business Days, and in the amounts, requested by Bank.
	 
	 	(p)	 	Tax Disclosure. Effective from the date of commencement of
discussions concerning the Transaction, Counterparty and each of its employees,
representatives, or other agents may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the Transaction and all
materials of any kind (including opinions or other tax analyses) that are provided to
Counterparty relating to such tax treatment and tax structure.
	 
	 	(q)	 	Right to Extend. Bank may delay any Settlement Date or any other
date of delivery by Bank, with respect to some or all of the Options hereunder, if
Bank reasonably determines, in its discretion, that such extension is reasonably
necessary to enable Bank to effect purchases of Shares in connection with its hedging
activity or settlement activity hereunder in a manner that would, if Bank were
Counterparty or an affiliated purchaser of Counterparty, be in compliance with
applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Bank.
	 
	 	(r)	 	Status of Claims in Bankruptcy. Bank acknowledges and agrees that
this Confirmation is not intended to convey to Bank rights against Counterparty with
respect to the Transaction that are senior to the claims of common stockholders of
Counterparty in any U.S. bankruptcy proceedings of Counterparty; provided that nothing
herein shall limit or shall be deemed to limit Bank’s right to pursue remedies in the
event of a breach by Counterparty of its obligations and agreements with respect to
the Transaction; provided, further, that nothing herein shall limit or shall be deemed
to limit Bank’s rights in respect of any transactions other than the Transaction.

17

 

	 	(s)	 	Securities Contract; Swap Agreement. Each of Bank and Counterparty
agrees and acknowledges that Bank is a “financial institution,” “swap participant”
and/or “financial participant” within the meaning of Sections 101(22), 101(53C) and
101(22A) of the Bankruptcy Code. The parties hereto further agree and acknowledge (A)
that this Confirmation is (i) a “securities contract,” as such term is defined in
Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery
hereunder is a “settlement payment,” as such term is defined in Section 741(8) of the
Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section
101(53B) of the Bankruptcy Code, with respect to which each payment and delivery
hereunder is a “transfer,” as such term is defined in Section 101(54) of the
Bankruptcy Code, and (B) that Bank is entitled to the protections afforded by, among
other sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the
Bankruptcy Code.
	 
	 	(t)	 	Additional Provisions. Counterparty covenants and agrees that, as
promptly as practicable following the public announcement of any consolidation, merger
and binding share exchange to which Counterparty is a party, or any sale of all or
substantially all of Counterparty’s assets, in each case pursuant to which the Shares
will be converted into cash, securities or other property, Counterparty shall notify
Bank in writing of the types and amounts of consideration that holders of Shares have
elected to receive upon consummation of such transaction or event (the date of such
notification, the “Consideration Notification Date”); provided that in no event shall
the Consideration Notification Date be later than the date on which such transaction
or event is consummated.
	 
	 	(u)	 	Receipt or Delivery of Cash. For the avoidance of doubt, other than
payment of the Premium by Counterparty, nothing in this Confirmation shall be
interpreted as requiring Counterparty to receive or deliver cash in respect of the
settlement of the Transactions contemplated by this Confirmation, except in
circumstances where the cash settlement thereof is within Counterparty’s control
(including, without limitation, where Counterparty elects to receive or deliver cash
or fails timely to elect to receive or deliver Share Termination Delivery Property in
respect of the settlement of such Transactions or in those circumstances in which
holders of the Shares would also receive cash).
	 
	 	(v)	 	Payment by Counterparty. In the event that (a) an Early Termination
Date occurs or is designated with respect to the Transaction as a result of a
Termination Event or an Event of Default (other than an Event of Default arising under
Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Counterparty owes to
Bank an amount calculated under Section 6(e) of the Agreement, or (b) Counterparty
owes to Bank, pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an
amount calculated under Section 12.8 of the Equity Definitions, such amount shall be
deemed to be zero.

18

 

     Counterparty hereby agrees (a) to check this Confirmation carefully and immediately upon
receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by Bank) correctly sets forth the terms of the
agreement between Bank and Counterparty with respect to the Transaction, by manually signing this
Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to Equity Derivatives
Documentation Department, Facsimile No. (212) 428-1980/83.

Very truly yours,

	 	 	 	 	 	 	 
	 	 	Goldman, Sachs & Co.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	David G. Goldenberg	 	 
	 

	 	 	 	 	 	 
	 	 	Authorized Signatory	 	 
	 	 	Name: David G. Goldenberg	 	 

Accepted and confirmed

as of the Trade Date:

NuVasive, Inc.

	 	 	 	 	 
	By:

	 	/s/ Alexis V. Lukianov
	 	 
	 

	 	 	 	 
	Authorized Signatory	 	 
	Name: Alexis V. Lukianov	 	 

19

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