Document:

exv10w3

Exhibit 10.3

Deferred Prosecution Agreement

     1. Wright Medical Technology, Inc. (the “Company”), by its undersigned attorneys,
pursuant to authority granted by its Board of Directors, and the United States Attorney’s
Office for the District of New Jersey (the “Office”), enter into this Deferred Prosecution
Agreement (the “DPA”). Except as specifically provided below, the DPA shall be in effect
for a period of twelve (12) months from the date on which it is fully executed (the
“Effective Date”).

     2. The Office has informed the Company that it will file, on or shortly after the Effective
Date of this DPA, a criminal complaint in the United States District Court for the District of New
Jersey charging the Company with conspiracy to commit violations of the Federal Anti-Kickback
Statute, contrary to Title 42, United States Code, Section 1320a - 7b(b), in violation of Title 18,
United States Code, Section 371, during the years 2002 through 2007 (the “Criminal Complaint”).
This Office acknowledges that neither this DPA nor the Criminal Complaint alleges the Company’s
conduct adversely affected patient health or patient care.

     3. The Company and the Office agree that, upon filing of the Criminal Complaint in
accordance with the preceding paragraph, this DPA shall be publicly filed in the United
States District Court for the District of New Jersey, and the Company agrees to post the DPA
prominently on the Company website for the duration of the DPA.

     4. In light of the Company’s remedial actions to date and its willingness to (a)
undertake additional remediation as necessary; (b) acknowledge responsibility for its
behavior; (c) continue its cooperation with the Office and other government agencies; and
(d) demonstrate its good faith and commitment to full compliance with federal health care
laws, the Office shall recommend to the Court that prosecution of the Company on the
Criminal Complaint be deferred for a period of twelve (12) months from the filing date of
such Criminal Complaint. If the Court declines to defer prosecution for any reason, this
DPA shall be null and void, and the parties will revert to their pre-DPA positions.

     5. In 2004, the Company incorporated the provisions of the newly promulgated AdvaMed Code of
Ethics on Interactions with Health Care Professionals (“AdvaMed Code”) into its Code of Business
Conduct, which the Company first issued in 1994. More recently, the Company has undertaken a
Compliance Initiative designed to strengthen its compliance processes, procedures and controls,
with a particular focus on those concerning consulting arrangements with customers or potential
customers of the Company’s hip and knee reconstruction and replacement products. In that respect,
the Company has separated the roles of General Counsel and Chief Compliance Officer, appointed a
new Chief Compliance Officer, expanded the obligations of its Nominating, Compliance and Governance
Committee, undertaken a review of its existing consulting agreements with respect to hip and knee
reconstruction and replacement products, and developed a comprehensive needs assessment process for
such consulting services. The Company also has developed additional policies and standard operating
procedures regarding, among other things, educational grants and charitable donations, product
development consultants, research consultants, training and education consultants, and employee and
distributor compliance training programs.

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General Commitment to Compliance and Remedial Actions

     6. The Company commits itself to exemplary corporate citizenship, the best practices of
effective corporate governance, the highest principles of honesty and professionalism, the
integrity of the operation of federal health care programs including
Medicare and Medicaid, the sanctity of the doctor-patient relationship, and a culture of openness,
accountability, and compliance throughout the Company. The Company also commits not to attempt to
influence medical practitioners and institutions to use the Company’s products through the use of
unlawful inducements. To advance and underscore this commitment, the Company agrees to take, or
has acknowledged that it has taken, the remedial and compliance measures set forth herein.

     7. In matters relating to federal health care laws, the Company will cooperate fully with all
federal law enforcement and regulatory agencies, including but not limited to: the Criminal and
Civil Divisions of the Office; the United States Department of Justice, Criminal and Civil
Divisions; the United States Department of Health and Human Services, Office of Inspector General
(“HHS-OIG”); the Federal Bureau of Investigation (“FBI”); and the United States Postal Inspection
Service (“USPIS”); provided, however, that such cooperation shall not require the Company’s waiver
of attorney-client and work product protections or any other applicable legal privileges. Nothing
in this DPA shall be construed as a waiver of any applicable attorney-client or work product
privileges (hereafter “privilege”).

     8. The Company shall communicate to its employees and distributors that Company personnel and
agents are required to report to the Company any suspected violations of any federal laws,
regulations, federal health care program requirements, or internal policies and procedures.

     9. The Company shall implement or continue its operation of an effective corporate compliance
program and function to ensure that internal controls are in place to prevent recurrence of the
activities that resulted in this DPA. The Company shall also develop and implement policies,
procedures, and practices designed to ensure compliance with federal health care program
requirements, including the Anti-Kickback Statute, with respect to all its dealings with
Consultants, as defined herein, and others who cause the purchase of Company hip and knee
reconstruction and replacement products in the United States.

     10. The Company shall adhere to the Revised and Restated AdvaMed Code of Ethics on
Interactions with Health Care Professionals. The Revised and Restated AdvaMed Code, which became
effective on July 1, 2009, can be found at www.advamed.org. The principles set forth in the
AdvaMed Code are expressly incorporated as compliance requirements under this DPA.

     11. The Company agrees that its President and Chief Executive Officer, Vice President, General
Counsel and Secretary, Vice President, Chief Compliance Officer (“Compliance Officer”), and
appropriate Company executives will meet quarterly with representatives of the Office and with the
Monitor, in conjunction with the Monitor’s quarterly reports described in paragraph 19(c) herein.

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Definitions

     12. “Consultant” is defined as any United States-based orthopaedic surgeon, PhD, health care
professional, non-physician practitioner, medical fellow, resident or student, hospital, medical
institution, or any employee or agent of any educational or health care organization the Company
retains for any personal or professional services or compensates or remunerates in any way,
directly or indirectly, for or in anticipation of personal or professional services relating to hip
and knee reconstruction and replacement in the United States. The term “Consultant” shall not
include accountants, auditors, attorneys, fair market value specialists, CME providers,
reimbursement specialists, any non-physician engineering or marketing consultants, or any other
types of non-physician professionals or entities excluded from this definition by the Monitor upon
recommendation by the Company.

     13. “Consulting Agreement” includes all contracts with Consultants for services to be performed
on behalf of the Company relating to hip and knee reconstruction and replacement in the United
States. This includes, but is not limited to, agreements for compensation, payments, remuneration,
honoraria, fellowships, professional meetings, speaking engagements, teaching, publications,
clinical studies, fee-for-service consulting, product development and license agreements, research,
and professional services agreements. The term “Consulting Agreement” also includes agreements to
provide grants, donations, sponsorships and other forms of payment to medical educational
organizations, medical societies and training institutions.

     14. “Consulting Services” or “Services” include any and all professional services provided by
a Consultant to or on behalf of the Company relating to hip and knee reconstruction and replacement
in the United States.

     15. “Payment” shall include any and all compensation or remuneration paid to or for the
benefit of Consultants, including but not limited to payments and reimbursements for personal or
professional services, any type of securities, registered or unregistered, meals, entertainment,
travel, gifts, grants, honoraria, charitable contributions, donations, sponsorships, research
grants, clinical studies, professional meetings, product training, medical education, research
funding, product development services, in-kind services (e.g., use of aircraft), advertising,
promotion, and marketing expenses or support, and royalties or other payments for transfer of
documented intellectual property. Unless otherwise approved by the Monitor, the Company shall only
compensate or remunerate Consultants through direct Payments made pursuant to a Consulting
Agreement. The Company shall not knowingly make any Payments to Consultants indirectly, such as
through distributors. Subject to Monitor approval, payments may be made to Consultants through
consulting entities provided that (1) the Consultant is named in the corresponding Consulting
Agreement, and (2) the Consultant is named on any and all payment documents.

Retention and Obligations of a Monitor

     16. The Company agrees that until the expiration of this DPA, it will retain an outside,
independent individual (the “Monitor”) selected by the Office consistent with United

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States Department of Justice guidelines and after consultation with the Company, to evaluate and
monitor the Company’s compliance with this DPA. The Monitor is an independent third party, and not
an employee or agent of the Company, and no attorney-client relationship shall be formed between
the Monitor and the Company. The Company agrees that it will not employ or be affiliated with any
selected Monitor for a period of not less than one year from the date the monitorship is
terminated.

     17. The Monitor shall have access to all non-privileged Company documents and information the
Monitor determines are reasonably necessary to assist in the execution of his or her duties. The
Monitor shall have the authority to meet with any officer, employee, or agent of the Company. The
Company shall use its best efforts to have its independent distributors for hip and knee
reconstruction and replacement products in the United States and their employees and agents fully
cooperate and meet with the Monitor as requested. For all distributor agreements for hip and knee
reconstruction and replacement products and renewals in the United States executed after the
Effective Date, the Company shall require provisions allowing the Monitor access to non-privileged
relevant documents and information relating to Consulting Agreements and Services, and compliance
with all applicable provisions of the DPA.

     18. The Monitor shall conduct a review and evaluation of all Company policies, practices, and
procedures relating to compliance with the DPA and the following subjects, and shall report and
make written recommendations as necessary (“Recommendations”) to the Company and the Office
concerning:

	 	a.	 	The corporate structure and governance of the Company relative to selecting, engaging, and
paying Consultants;
	 
	 	b.	 	The effectiveness of the procedures and practices at the Company to select, engage, and pay
Consultants in exchange for the provision of Services to the Company, as well as the related legal,
compliance, research and development, marketing, sales, internal controls, and finance functions;
	 
	 	c.	 	The effectiveness of the training and education programs in the following areas: federal
health care laws concerning relationships between the Company and Consultants; Medicare, Medicaid
and other health care benefit programs; ethics; and compliance and corporate governance issues
relating to federal health care laws;
	 
	 	d.	 	The structure and content of agreements memorializing arrangements to engage and pay
Consultants in exchange for the provision of Services to the Company and the Company’s payments to
Consultants made thereunder. The Monitor shall have access to and may review all previously
entered agreements to the extent he or she reasonably deems necessary; and

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	 	e.	 	The influence, actual or potential, over Consultants’ selection of Company products as a
result of the financial relationships between the Company and those Consultants.

     19. The Monitor shall, inter alia:

	 	a.	 	Monitor and review the Company’s compliance with this DPA and all applicable federal health care
laws, statutes, regulations, and programs, including the Anti-Kickback Statute and regulations
promulgated thereunder in connection with the sale and marketing by the Company of the Company’s
hip and knee reconstruction and replacement products in the United States;
	 
	 	b.	 	As requested by the Office, cooperate with the Criminal and Civil Divisions of the Office,
the United States Department of Justice, Criminal and Civil Divisions, HHS-OIG, the FBI and the
USPIS, and, as requested by the Office, provide information about the Company’s compliance with the
terms of this DPA;
	 
	 	c.	 	Provide written reports to the Office, on at least a quarterly basis, concerning the
Company’s compliance with this DPA. In these reports or at other times the Monitor deems
appropriate, the Monitor shall make Recommendations to the Company to take any steps he or she
reasonably believes are necessary for the Company to comply with the terms of this DPA and enhance
future compliance with federal health care laws in connection with the sale and marketing by the
Company of the Company’s hip and knee reconstruction and replacement products in the United States,
and, as agreed by the Company or mandated by the Office pursuant to paragraph 46, require the
Company to take such steps when it is agreed that such steps are reasonable and necessary for
compliance with the DPA. The first report to the Office shall be due three (3) months after the
Effective Date, and subsequent reports shall be made quarterly thereafter;
	 
	 	d.	 	After consultation with the Company and the Office, and allowing
reasonable time for the Company or the Office to object, the Monitor may
retain, at the Company’s expense, consultants, accountants or other
professionals the Monitor reasonably deems necessary to assist the Monitor
in the execution of the Monitor’s duties. Before retention, these
consultants, accountants or other professionals shall provide to the Monitor
and the Company a proposed budget. If the Company believes the costs to be
unreasonable, the Company may bring the matter to the Office’s attention for
dispute resolution by the Office;
	 
	 	e.	 	Monitor the preparation of and approve the Needs Assessment and any
Modifications thereto described in paragraphs 27-30 herein;

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	 	f.	 	Review and approve all new or renewed Consulting Agreements executed between the Effective
Date and the date the Needs Assessment is approved;
	 
	 	g.	 	Review in his or her discretion any requests for Consulting Services made between the
Effective Date and the date the Needs Assessment is approved;
	 
	 	h.	 	Review in his or her discretion any Payments made to Consultants between the
Effective Date and the date the Needs Assessment is approved;
	 
	 	i.	 	Review and approve in his or her discretion all Consulting Agreements with new
Consultants executed after the Needs Assessment is approved;
	 
	 	j.	 	Review in his or her discretion any Consulting Agreement renewals executed after the
Needs Assessment is approved;
	 
	 	k.	 	Review in his or her discretion any requests for Consulting Services made after the Needs
Assessment is approved;
	 
	 	l.	 	Review in his or her discretion any Payments made to Consultants after the Needs
Assessment is approved;
	 
	 	m.	 	Review in his or her discretion any payments made to CME providers, reimbursement
specialists, any non-physician engineering or marketing consultants, or other excluded
consultants as described in paragraph 12, for personal or professional services relating to hip
and knee reconstruction and replacement in the United States;
	 
	 	n.	 	Review in his or her discretion any payments made to Consultants as honoraria,
fellowships, gifts, donations, charitable contributions and other non-Service payments as
described in paragraph 27;
	 
	 	o.	 	Review and approve any new or substitute Consultants as described in paragraphs 33 and
34 herein;
	 
	 	p.	 	Approve any changes to the Hourly Rate or any Payments made at a rate other than the Hourly
Rate, as described in paragraphs 36-37 herein;
	 
	 	q.	 	Monitor the Company’s compliance with its
Consultant disclosure obligations as described in paragraphs 40-41 herein; and
	 
	 	r.	 	Monitor the information received by the confidential hotline and e-mail address as
described in paragraph 43 herein.

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     In the event the Monitor opposes any Consulting Agreement, request for Consulting Services, or
request for Payment, the Monitor will promptly meet with the Company to discuss his or her
concerns. The Consulting Agreement shall not be executed, the Consulting Services shall not be
rendered, or the Payment shall not be made unless and until the Monitor’s objections are remedied.
All actions of the Monitor in this regard shall be subject to review by the Office and shall not
require the Company to breach any existing contractual requirements so long as those requirements
comply with all applicable laws. The Office will act promptly to resolve any issues on a good
faith and reasonable basis.

     20. The Company shall promptly notify the Monitor and the Office in writing of any credible
evidence of criminal corporate conduct as well as of any known criminal investigations of any type
of the corporation or any of its officers or directors that becomes known to the Company after the
Effective Date. In addition, the Company shall promptly notify the Monitor and the Office in
writing of any credible evidence of criminal conduct or serious wrongdoing relating to federal
health care laws by the Company, its officers, employees and agents. The Company shall provide the
Monitor and the Office with all relevant non-privileged documents and information concerning such
allegations, including but not limited to internal audit reports, letters threatening litigation,
“whistleblower” complaints, civil complaints, and documents produced in civil litigation. In
addition, the Company shall report to the Monitor and the Office concerning its planned
investigative measures and any resulting remedial measures, internal and external. The Monitor in
his or her discretion may conduct an investigation into any such matters, and nothing in this
paragraph shall be construed as limiting the ability of the Monitor to investigate and report to
the Company and the Office concerning such matters.

Remedial Measures

     Responsibilities of Compliance Officer

     21. The Compliance Officer shall be responsible for monitoring the day-to-day compliance
activities of the Company. The Compliance Officer shall be a member of senior management of the
Company who reports directly to the Nominating, Compliance and Governance Committee of the Board of
Directors and indirectly to the President and Chief Executive Officer, and shall not be a
subordinate to the General Counsel, the Chief Financial Officer, or any sales or marketing
officers. The Compliance Officer shall make periodic (at least quarterly) reports regarding
compliance matters to the Company Board of Directors and is authorized to report on such matters
directly to the Company Board of Directors at any time.

     22. The Compliance Officer shall have the authority to meet with, and require reports and
certifications on any subject from, any officer or employee of the Company and any distributor and
its employees.

     23. The Compliance Officer shall be responsible for oversight, evaluation, and approval of the
Company’s Needs Assessments (described more fully at paragraphs 27-30), and shall evaluate and
approve requests for Consulting Agreements, Services, and Payments, subject to review and approval
by the Monitor as set forth in paragraph 19.

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     24. The Compliance Officer shall be responsible for approving the Consulting Services budget.
All requests for Consulting Services and Payments must be made to and approved by the Compliance
Officer. Any Payments to or for the benefit of a Consultant must be approved by the Compliance
Officer, subject to review of the Monitor as set forth in paragraph 19.

     25. Consulting Agreements shall be managed by Company employees who have no sales
responsibilities and who report to the Compliance Officer on issues relating to Consulting
Services. These employees shall interface directly with the Consultants on the terms of their
Consulting Agreements and on issues relating to Payments.

     26. From the Effective Date until the Needs Assessment is approved, all requests for
Consulting Services and Payments shall be pre-approved by the Compliance Officer. In considering
these requests, the Compliance Officer and any other Company personnel with knowledge of the
request shall evaluate the bona fides of the activity for which the Services or Payments are
requested, subject to review of the Monitor. No Consulting Services may be approved unless the
Compliance Officer verifies that the Company has a bona fide commercial need for such services.
No Payments may be made without appropriate documentation and verification of services rendered on
a standard form to be developed by the Compliance Officer and approved by the Monitor.

Needs Assessment

     27. The Company shall complete a Needs Assessment no later than December 31, 2010, and
annually thereafter. The Needs Assessment may be modified if bona fide, commercially reasonable,
unexpected business needs arise (“Modification”). The Needs Assessment must reflect the Company’s
expected, commercially reasonable needs for all Consulting Services to fulfill its medical,
clinical, training, educational, and research and development needs for its hip and knee
reconstruction and replacement products in the United States. The Needs Assessment shall also
contain a budget for the total amount of honoraria, fellowships, gifts, donations, charitable
contributions, and any other payments contemplated to be made to Consultants for which no
Consulting Services are provided. The Needs Assessment and any Modifications shall be prepared in
consultation with those areas of the Company that have bona fide needs for the services to be
performed. The Needs Assessment and any Modifications must be approved by the Compliance Officer
and the Monitor before they are finalized. As of January 1, 2011, the Needs Assessment and any
Modifications shall be used as a basis for Consultant selection and all Consulting Agreements,
Services and Payments. The Compliance Officer shall attest to the best of his or her knowledge,
after conducting reasonable due diligence, that the Needs Assessment and any Modifications reflect
the bona fide, commercially reasonable consulting needs of the Company.

     28. The Needs Assessment shall establish or incorporate by reference detailed protocols or
procedures that must be followed before a Consulting Agreement will be authorized. The Needs
Assessment must identify and quantify the services needed within each discrete service category
(e.g., operating room training, speaking engagements, clinical studies, product development
groups), and provide written support for the needs. The Needs Assessment must set

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forth the nature of the services needed, the range of hours or other quantitative measure needed to
complete the services, the number of Consultants needed, and the maximum fair market value
compensation to be paid for each consulting service. The Needs Assessment shall also identify the
qualifications and expertise required to perform the services. The Needs Assessment shall ensure
that Services are distributed appropriately to all regions of the country.

     29. The Needs Assessment and any approved Modifications shall be used to define and limit all
Consulting Services performed for the Company for the ensuing year. All Consulting Agreements
entered into by the Company shall be for services specified and enumerated by the Needs Assessment
and any approved Modifications. No Consulting Agreement shall be entered into with any Consultant
for services outside those specified in the Needs Assessment and any approved Modifications, or for
services exceeding the number of services specified in the Needs Assessment and any approved
Modifications. For example, if the Needs Assessment specifies that the Company will require
Consultants to conduct 50 speaking engagements on a particular topic, once the total number of
contracted-for speaking engagements reaches 50, the Company may not engage any additional
Consultants for such speaking engagements unless it obtains an approved Modification.

     30. The Company shall maintain a record of all Consulting Services provided under the Needs
Assessment and any Modifications. Monthly reports will be issued by the Compliance Officer to the
Monitor and to senior executives in the areas in which services are provided summarizing the
Consulting Services provided or submitted for Payment, by Consultant, by region, and by total, with
a list of services left to be provided during the calendar year in fulfillment of the Needs
Assessment.

     Consulting Agreements

     31. All Consulting Agreements shall be in writing and executed by the Compliance Officer, the
President and Chief Executive Officer, and the Vice President, General Counsel and Secretary. For
product development and research agreements, the Senior Vice President, Research and Development
also shall sign. For research and clinical services agreements (such as clinical trials, clinical
studies, and follow-up visits), the Vice President, Clinical and Regulatory Affairs also shall
sign. On an annual basis, the Compliance Officer, the Senior Vice President, Research and
Development, for product development and research agreements, the Vice President, Clinical and
Regulatory Affairs, for clinical services agreements, shall attest and certify in writing that,
based on their reasonable inquiry and knowledge, all Consulting Agreements and all Consulting
Services performed thereunder were bona fide, commercially reasonable, and compliant with all
federal health care programs. The Company shall not enter into Consulting Agreements with
Consultants through any third parties, including distributors. Subject to Monitor approval,
payments may be made to Consultants through consulting entities provided that (1) the Consultant is
named in the corresponding Consulting Agreement, and (2) the Consultant is named on any and all
payment documents.

     32. All Consulting Agreements for Consulting Services to be rendered in 2011 and thereafter
shall be for a term of the calendar year, with the exception of product development agreements that
could result in the payment of royalties, clinical agreements, external research

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agreements, or other agreements which may be for a length appropriate to the type of Service being
rendered, upon approval of the Monitor. All Consulting Agreements shall identify the specific
Services to be provided as defined by the Needs Assessment and any Modification thereto, and
specify the rate to be paid for each Service. The Company may not enter into Consulting Agreements
for Services exceeding the total number of Services set forth in the Needs Assessment and any
Modification thereto. Consultants shall be paid only for the actual time expended in providing
Consulting Services, in hourly billing increments or other reasonable quantitative measure as
identified in the Needs Assessment, without regard to the total amount of consulting services
permissible under their Consulting Agreements.

     New and Substitute Consultants

     33. The Compliance Officer, in consultation with the Monitor and appropriate Company
employees, shall conduct an evaluation of each new Consultant to be considered for a Consulting
Agreement. This evaluation shall ensure that the proposed Consultant’s qualifications and
experience are commensurate with those required by the Needs Assessment and any Modification
thereto, and that any new relationship meets an unfilled bona fide commercial need of the Company.

     34. In the event a Consultant is unable to provide services to the Company under a Consulting
Agreement in any given year, the Company may substitute another Consultant or retain a new
Consultant to perform the specified yet unfulfilled Consulting Services of the Consulting
Agreement. The substitute Consultant must be authorized by the Compliance Officer and approved by
the Monitor after conducting a substantive review of the Consultant’s qualifications and expertise.

     Payments to Consultants

     35. A Company employee or representative must be present for every Consulting Service, except
that the Monitor, upon application by the Compliance Officer, may exempt certain Services from this
requirement (such as collection of clinical study data, travel or preparation time). Upon
completion of the Consulting Service, both the Company employee (or representative) in attendance
and the Consultant must independently verify in writing that the Service took place, identify the
participants present and length of service, and summarize the Service provided. These
verifications must be certified, made under penalty of perjury, and submitted to the Compliance
Officer within ninety (90) calendar days of the date of the Service and as a condition precedent to
any Payments being issued under a Consulting Agreement.

     36. For all Consulting Agreements entered into after the Effective Date of this DPA, the
Company agrees to make Payments to Consultants at a fair market value hourly rate (“Hourly Rate”)
of no more than $500 per hour for time actually expended by a Consultant performing Consulting
Services. In the event the Company wishes to make Payments to a Consultant at a higher Hourly Rate
or at a different rate because of the Consultant’s special expertise or the nature of the service
(such as a per patient rate for clinical studies), the Company must obtain or have obtained a fair
market value analysis conducted by an independent organization with

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expertise in valuation as approved or accepted by the Monitor. Any changes to the Hourly Rate or
Payments at other than the Hourly Rate must be approved by the Monitor.

     37. With respect to product development agreements and renewals entered into after the
Effective Date and for all Services to be rendered after January 1, 2011, the Company shall pay a
Consultant on a product development team for the actual time spent providing Services to the
Company, at no more than the Hourly Rate. In addition to the Hourly Rate payments, the Company may
pay each member of a product development team royalties on any product the team may develop. The
number of Consultants serving on a product development team must not exceed the number reasonably
necessary to achieve the identified design and development needs of the project. The aggregate
royalties paid per project to all Consultants shall not exceed fair market value expressed as a
certain percentage of all domestic and international product sales of the product or products that
are the subject of the product development agreement as proposed by the Company and approved by the
Monitor. These royalty payments and Hourly Rate payments shall be the only compensation a
Consultant may receive for participation on a product design team; that is, the Company shall not
make any flat rate payments or minimum guaranteed payments in lieu of or in addition to Hourly Rate
payments and royalty payments. The Company may offset royalty payments to a Consultant with Hourly
Rate payments for Services the Consultant appropriately performed. The Company may pay royalties
to a Consultant only for Intellectual Property received by the Company for products that have
actually been sold. (Products may be considered to have been sold when the products are
transferred to an unrelated third-party or to a Company affiliate located outside the United
States.) If the Intellectual Property has been patented in the United States, royalty payments may
not extend beyond the life of the U.S. patent. If the Intellectual Property has not been patented,
royalties may not extend beyond a reasonable period (in light of factors such as the life cycle and
commercial advantages of the products and Intellectual Property and the burden of administering the
royalty arrangement). As used herein, “Intellectual Property” includes patents, trade secrets and
knowhow received by the Company from the Consultant or product development team under a product
development agreement. The Company shall establish processes for reviewing individual Consultant
contributions to determine whether Intellectual Property has been provided to the Company, and such
processes shall be approved by the Monitor. The persons responsible for deciding whether
Intellectual Property has been provided shall not be involved in sales functions, and their
decision is subject to Monitor approval. The identity of royalty-bearing products must be
reasonable (in light of factors such as the scope of Intellectual Property transferred, the
relationship of the Intellectual Property to the products and the burden of administering the
royalty arrangement) and is subject to Monitor approval. Royalties must not be paid in advance or
in anticipation of product development that might result in a royalty. No royalty may be paid to a
Consultant that is earned by virtue of the use of the product in question by the Consultant or by
any hospital or medical institution with which the Consultant is affiliated. In lieu of royalties,
a fixed amount may be paid for Intellectual Property provided to the Company, provided the amount
is commercially reasonable; such fixed amounts are subject to Monitor approval. For patents and
patent applications that are not assigned or licensed to the Company under a product development
agreement, royalties, patent fees, patent costs, and/or a fixed amount may be paid for the
acquisition or licensing of such patents and patent applications, subject to Monitor approval.

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     38. All Consultants on product design teams shall submit invoices, at least quarterly, and
supporting documentation for services rendered to the Company’s design team project manager for
approval, prior to any Payments being made. A Company employee shall be present at all meetings of
product development teams. That employee shall report the date, the participants, and a summary of
the meeting to the project manager. The project manager must certify in writing that the invoices
reflect bona fide services provided by the Consultant. These invoices, supporting documentation,
and certification must be submitted to the Compliance Officer for Payment.

     39. In addition, the following practices have been or shall be implemented no later than sixty
(60) calendar days after the Effective Date:

	 	a.	 	The Company may not make Payments to Consultants for collection of clinical data unless
there is a written agreement defining the required procedures and protocol and the amount of
clinical data to be collected by the Consultant, pre-approved by the Vice President, Clinical and
Regulatory Affairs.
	 
	 	b.	 	The Company may not make Payments to Consultants for research unless there is a written
agreement defining the required procedures and protocol, pre-approved by the Senior Vice President,
Research and Development. The Company may not provide unrestricted grants to Consultants.
	 
	 	c.	 	The Company may not fund any fellowships for fellows who work with any Consultant, with the
exception of fellowship funding to legitimate medical education foundations or institutions so long
as that funding is approved in advance by the Compliance Officer and the Monitor.
	 
	 	d.	 	The Company may not make charitable contributions to 501(c)(3) organizations that are, to
the best of the Company’s knowledge after reasonable due diligence is conducted, controlled by a
Consultant or an immediate family member of a Consultant, or at which an immediate family member of
a Consultant is employed. All charitable contributions must be approved in advance by the
Compliance Officer in consultation with the Monitor, and the Monitor has the discretion to make
exceptions to the above standard.
	 
	 	e.	 	Other than Consulting Agreements, the sale of products and associated equipment and
instruments and the purchase of Intellectual Property, the Company may have no commercial dealings
with any Consultant or any entity or organization that the Company has reason to believe, after
reasonable due diligence is conducted, is controlled by the Consultant or an immediate family
member of the Consultant. The Monitor has the discretion to make exceptions to the above standard.

12

 

	 	f.	 	The Company shall not hire or engage as an agent or distributor anyone in order to induce a
specific Consultant to use or purchase Company products.
	 
	 	g.	 	The Compliance Officer shall notify the Monitor of any employees or independent
distributors who are known to bear an immediate family relationship to any Consultant. In such
cases, the Monitor may recommend changes in assignment or case coverage to avoid actual or
perceived conflicts of interest.

Disclosure

     40. All new Consulting Agreements and renewals shall require Consultants to disclose their
financial engagement with the Company to their patients, as well as to their affiliated hospitals.

     41. Within thirty (30) calendar days of the Effective Date of this DPA, the Company shall
prominently feature on its web site the name, city, and state of residence for each of the
Company’s Consultants who were retained at any time in 2010, who provided Consulting Services to
the Company at any time in 2010, or who received any Payments from the Company in 2010. The
Company shall also there disclose the Payments made to each Consultant to date in 2010 within
$25,000 increments, and all other Payments made in other than dollar form. Within ten (10)
calendar days after a new Consulting Agreement or renewal is executed, the Company shall post the
name of the Consultant on its web site. If the Company has or does enter into a Consulting
Agreement with an entity rather than an individual, the Company shall post both the name of the
entity and the individual providing Services to the Company under the Consulting Agreement.
Payment information shall be updated quarterly during the term of this DPA to reflect the total
Payments made to each Consultant within $25,000 increments, and all other Payments made in other
than dollar form. The Company must also disclose this information to the Consultant’s affiliated
hospitals.

Compliance, Training, Hotline

     42. The Company agrees to enhance, support, and maintain its existing training and education
programs, including any programs recommended by the Monitor pursuant to paragraph 18, above. The
programs, which shall be reviewed and approved by the Company President and Chief Executive
Officer, Board of Directors, Vice President, General Counsel and Secretary, Compliance Officer, and
the Monitor, shall be designed to advance and underscore the Company’s commitment to exemplary
corporate citizenship, to best practices of effective corporate governance and the highest
principles of integrity and professionalism, and to fostering a culture of openness, accountability
and compliance with federal health care laws throughout the Company. Completion of such training
shall be mandatory for all Company officers, executives, and employees who are involved in Sales,
Marketing, Legal, Compliance, and other senior executives at the Company as proposed by the
Compliance Officer and approved by the Monitor (collectively the “Mandatory Participants”). Such
training and education shall cover, at a minimum, all relevant federal health care laws and
regulations, internal controls in place concerning Consultants and their Consulting Agreements with
the Company, and the obligations

13

 

assumed by, and responses expected of, the Mandatory Participants upon learning of improper,
illegal, or potentially illegal acts relating to the Company’s sales and marketing practices. The
Company Chief Executive Officer and Board of Directors shall communicate to the Mandatory
Participants, in writing or by video, their review and endorsement of the training and education
programs. The Company shall commence providing this training within ninety (90) calendar days
after the Effective Date of this DPA.

     43. The Company agrees to maintain its confidential hotline and e-mail address, of which
Company employees, agents, and customers are informed and which they can use to notify the Company
of any concerns about unlawful conduct, other wrongdoing, or evidence that Company practices do not
conform to the requirements of this Agreement. Subject to Monitor approval, the Company may retain
a vendor to assist in the maintenance of the Company’s confidential hotline and e-mail address.
This hotline and e-mail address shall be reviewed by the Monitor. The Company shall post
information about this hotline on its website and shall inform all those who avail themselves of
the hotline of the Company’s commitment to non-retaliation and to maintain confidentiality and
anonymity with respect to such reports.

Disclosure of Monitor Reports

     44. The Company agrees that the Monitor may disclose his or her written reports, as directed
by the Office, to any other federal law enforcement or regulatory agency in furtherance of an
investigation of any other matters discovered by, or brought to the attention of, the Office in
connection with the Office’s investigation of the Company or the implementation of this DPA. The
Company may identify any trade secret or proprietary information contained in any report, and
request that the Monitor redact such information prior to disclosure.

Replacement of Monitor

     45. The Company agrees that if the Monitor resigns or is unable to serve the balance of his
or her term, a successor shall be selected by the Office consistent with United States Department
of Justice guidelines and after consultation with the Company, within forty-five (45) calendar
days. The Company agrees that all provisions in this DPA that apply to the Monitor shall apply to
any successor Monitor.

Adopting Recommendations of Monitor

     46. The Company shall adopt all Recommendations contained in each report submitted by the
Monitor to the Office, unless the Company objects to the Recommendation and the Office agrees that
adoption of the Recommendation shall not be required. The Monitor’s reports to the Office shall
not be received or reviewed by the Company prior to submission to the Office; such reports will be
preliminary until the Company is given the opportunity, within fifteen (15) calendar days after the
submission of the report to the Office, to comment to the Monitor and the Office in writing upon
such reports, and the Monitor has reviewed and provided to the Office responses to such comments,
upon which such reports shall be considered final. In the event the Company disagrees with any
Recommendation of the Monitor, the Company and the Monitor may present the issue to the United
States Attorney for his consideration and final decision, which is non-appealable.

14

 

Meeting with the U.S. Attorney

     47. Within thirty (30) calendar days of the Effective Date of this DPA, the Company agrees to
call a meeting, on a date mutually agreed upon by the Company and the Office, of Company senior
compliance, sales, and marketing executives, and any other Company employees whom the Company
desires to attend, such meeting to be attended by the United States Attorney, his designee, and/or
other representatives of the Office for the purpose of communicating the goals and expected effect
of this DPA.

Cooperation

     48. The Company agrees that its continuing cooperation during the term of this DPA shall
include, but shall not be limited to, the following:

	 	a.	 	Not engaging in or attempting to engage in any criminal conduct;
	 
	 	b.	 	Completely, truthfully and promptly disclosing all non-privileged information concerning all
matters about which the Office and other government agencies designated by the Office may
inquire with respect to the Company’s compliance with health care laws, and continuing to
provide the Office, upon request, all non-privileged documents and other materials relating to
such inquiries;
	 
	 	c.	 	Consenting to any order sought by the Office permitting disclosure to the Civil Division of
the United States Department of Justice of any materials relating to compliance with federal
health care laws that constitute “matters occurring before the grand jury” within the meaning of
Rule 6(e) of the Federal Rules of Criminal Procedure. If the Company asserts that any such any
material contains trade secrets or other proprietary information, the Company shall propose
redactions to the Office prior to disclosure to any other governmental entity, or the material
shall be accompanied by a prominent warning notifying the agency of the protected status of the
material;
	 
	 	d.	 	Making available current Company officers and employees and using its best efforts to make
available former Company officers and employees to provide information and/or testimony at all
reasonable times as requested by the Office, including sworn testimony before a federal grand
jury or in federal trials, as well as interviews with federal law enforcement authorities as may
relate to matters involving compliance with health care laws. The Company is not required to
request of its current or former officers and employees that they forego seeking the advice of an
attorney nor that they act contrary to that advice. Cooperation under this paragraph shall
include, upon request, identification of witnesses who, to the Company’s knowledge, may have
material non-privileged information regarding the matters under investigation;
	 
	 	e.	 	Providing testimony, certifications, and other non-privileged information deemed necessary by
the Office or a court to identify or establish the original location, authenticity, or other
evidentiary foundation necessary to admit into evidence

15

 

	 	 	 	documents in any criminal or other proceeding relating to compliance with health care laws
as requested by the Office;

	 	f.	 	The Company acknowledges and understands that its future cooperation is an important factor
in the decision of the Office to enter into this DPA, and the Company agrees to continue to
cooperate fully with the Office, and with any other government agency designated by the Office,
regarding any issue about which the Company has knowledge or information with respect to
compliance with health care laws;
	 
	 	g.	 	This agreement to cooperate does not apply to any information provided by the Company to
legal counsel in connection with the provision of legal advice and the legal advice itself, or
to information or documents prepared in anticipation of litigation, and nothing in this DPA
shall be construed to require the Company to provide any such information or advice to the
Office or any other government agency; and
	 
	 	h.	 	The cooperation provisions in this paragraph shall not apply in the event that the
Office pursues a criminal prosecution against the Company.

Breach of Agreement

     49. Should the Office determine, in good faith and in its sole discretion, during the term of
this DPA that the Company has committed any criminal conduct relating to compliance with health
care laws subsequent to the Effective Date of this DPA, the Company shall, in the discretion of the
Office, thereafter be subject to prosecution for any federal crimes of which the Office has
knowledge.

     50. Should the Office determine in good faith and in its sole discretion that the Company has
knowingly and willfully breached any material provision of this DPA, the Office shall provide
written notice to the Company of the alleged breach and provide the Company with a three-week
period from receipt of such notice in which to make a presentation to the Office to demonstrate
that no breach occurred, or, to the extent applicable, that the breach was not material or
knowingly and willfully committed or has been cured. The parties understand and agree that should
the Company fail to make a presentation to the Office within the three-week period after receiving
written notice of an alleged breach, it shall be conclusively presumed that the Company is in
breach of this DPA. In the event the Office determines, in good faith and in its sole discretion,
that a second material breach has occurred, or that the first material breach has not been
adequately cured, the Office shall provide written notice to the Company of the breach, and the
breach may result, in the sole discretion of the Office, in the prosecution of the Company relating
to the allegations set forth in the criminal complaint described in paragraph 2 above. In the
event of any breach of this DPA that results in a prosecution of the Company, such prosecution may
be premised upon any information provided by or on behalf of the Company to the Office at any time,
unless otherwise agreed at the time the information was provided. The parties further understand
and agree that the determination whether the Company has breached this DPA rests solely in the
discretion of the Office, and the exercise of discretion by the Office

16

 

under this paragraph is not subject to review in any court or tribunal outside the United States
Department of Justice.

     51. In the event of breach of this DPA as defined in paragraph 49 or 50 above, the Company may
be subject to exclusion by HHS-OIG from participation in all federal health care programs. Such
exclusion shall have national effect and shall also apply to all other federal procurement and
non-procurement programs. Federal health care programs shall not pay anyone for services or items
manufactured, furnished, or distributed by the Company in any capacity while the Company is
excluded. This payment prohibition applies to the Company and all other individuals and entities
(including, for example, anyone who employs or contracts with the Company, and any hospital or
other provider where the Company provides services). The exclusion applies regardless of who
submits the claim or other request for payment. The Company shall not submit or cause to be
submitted to any federal health care program any claim or request for payment for services or items
manufactured, furnished, or distributed by the Company during the exclusion. Violation of the
conditions of the exclusion may result in criminal prosecution, the imposition of civil monetary
penalties and assessments, and an additional period of exclusion. The Company further agrees to
hold the federal health care programs, and all federal beneficiaries and/or sponsors, harmless from
any financial responsibility for services or items manufactured, furnished or distributed to such
providers, beneficiaries or sponsors after the effective date of the exclusion. The Company waives
any further notice of the exclusion under 42 U.S.C. § 1320a-7(b)(7), and agrees not to contest such
exclusion either administratively or in any state or federal court. Reinstatement to program
participation is not automatic. If at the end of the period of exclusion the Company wishes to
apply for reinstatement, the Company must submit a written request for reinstatement to the OIG in
accordance with the provisions of 42 C.F.R. §§ 1001.3001-.3005. The Company will not be reinstated
unless and until the OIG approves such request for reinstatement.

     52. In the event of breach of this DPA as defined in paragraph 49 and 50 above, the Office
shall have discretion to extend the term of the Monitor by a period of up to 6 months, with a total
term not to exceed 18 months, in lieu of prosecuting or subjecting the Company to exclusion.

     53. In the event that the Company can demonstrate to the Office that there exists a change in
circumstances sufficient to eliminate the need for a Monitor, the Office may exercise its
discretion, consistent with United States Department of Justice policy, to terminate the
monitorship.

Waivers and Limitations

     54. The Company shall expressly waive all rights to a speedy trial pursuant to the Sixth
Amendment of the United States Constitution, Title 18, United States Code, Section 3161, Federal
Rule of Criminal Procedure 48(b), and any applicable Local Rules of the United States District
Court for the District of New Jersey, for the period that this DPA is in effect for any prosecution
of the Company relating to the allegations set forth in the criminal complaint described in
paragraph 2 above.

17

 

     55. In case of a knowing and willful material breach of this DPA, any prosecution of the
Company relating to the allegations set forth in the criminal complaint described in paragraph 2
above that is not time-barred by the applicable statute of limitations as of the Effective Date of
this DPA may be commenced against the Company notwithstanding the expiration of any applicable
statute of limitations during the term of the DPA. The Company agrees to waive any claims of
improper venue with respect to any prosecution of the Company relating to the allegations set forth
in the criminal complaint described in paragraph 2 above. This waiver is knowing and voluntary and
in express reliance on the advice of counsel. Any such waiver shall terminate upon final
expiration of this DPA.

     56. Absent the express written consent of the Office to conduct itself otherwise, and
consistent with United States Department of Justice policy, the Company agrees that if, after the
Effective Date of this Agreement, the Company sells all or substantially all of its business
operations as they exist as of the Effective Date of this Agreement to a single purchaser or group
of affiliated purchasers during the term of this Agreement, or merges with a third party in a
transaction in which the Company is not the surviving entity, the Company shall include in any
contract for such sale or merger a provision binding the purchaser, successor, or surviving entity
to continue to comply with the Company’s obligations as contained in this DPA.

     57. The Company is simultaneously entering into an agreement with the Office’s Civil Division
(the “Civil Settlement Agreement’) regarding the payment of money to settle certain civil claims.
The Company is also simultaneously entering into a Corporate Integrity Agreement (“CIA”) with
HHS-OIG to implement certain specified compliance measures. Failure by the Company to comply fully
with those material terms of the Civil Settlement Agreement scheduled to occur during the Effective
Period of this DPA may constitute a breach of this DPA; provided, however, that a breach of the CIA
referenced in the Civil Settlement Agreement does not constitute a breach of this DPA. Any
disputes arising under the CIA shall be resolved exclusively through the dispute resolution
provisions of the CIA.

     58. Nothing in this DPA restricts in any way the ability of the Office to investigate and
prosecute any current or former Company officer, employee, agent or attorney.

     59. It is understood that this DPA is limited to the Company and the Office, and it cannot
bind other federal, state or local authorities. However, the Office will bring this DPA, the
United States Department of Justice Petite Policy and the cooperation of the Company and its
compliance with its other obligations under this DPA to the attention of other prosecuting offices,
if requested to do so.

Dismissal of Complaint

     60. The Office agrees that if the Company is in full compliance with all of its obligations
under this DPA, the Office, within ten (10) calendar days of the expiration of the term of this
DPA, will seek dismissal with prejudice of the criminal complaint described in paragraph 2 above.
Except as otherwise provided herein, during and upon the conclusion of the term of this DPA, the
Office agrees that it will not prosecute the Company further for the matters

18

 

that have been the subject of the Office’s investigation relating to this DPA, including but not
limited to Payments that the Company made to Consultants between 2002 and 2007.

The Full Agreement

     61. This DPA constitutes the full and complete agreement between the Company and the Office
and supersedes any previous agreement between them. No additional promises, agreements, or
conditions have been entered into other than those set forth in this DPA, and none will be entered
into unless in writing and signed by the Office, Company counsel, and a duly authorized
representative of the Company. It is understood that the Office may permit exceptions to or excuse
particular requirements set forth in this DPA at the written request of the Company or the Monitor,
but any such permission shall be in writing.

     62. This DPA may be executed in counterparts, each of which shall be deemed an original but
all of which taken together shall constitute one and the same agreement. The exchange of copies of
this DPA and of signature pages by facsimile or electronic transmission shall constitute effective
execution and delivery of this DPA as to the parties and may be used in lieu of the original DPA
for all purposes. Signatures of the parties transmitted by facsimile or electronic transmission
shall be deemed to be their original signatures for all purposes.

AGREED TO:

	 	 	 

	/s/: Gary D. Henley

	 	/s/: J. Gilmore Childers
	 	 	 
	Gary D. Henley

	 	J. Gilmore Childers
	President and Chief Executive Officer

	 	Attorney for the United States, Acting Under
	Wright Medical Technology, Inc.

	 	Authority Conferred by 28 U.S.C. § 515
	 
	 	 
	 	 	 
	9/22/10

Date

	 	9/29/10
Date

19

 

DIRECTOR’S CERTIFICATE

     I have read this agreement and carefully reviewed every part of it with counsel for Wright
Medical Technology, Inc. (the “Company”). I understand the terms of this Deferred Prosecution
Agreement and voluntarily agree, on behalf of the Company, to each of the terms. Before signing
this Deferred Prosecution Agreement, I consulted with the attorney for the Company. The attorney
fully advised me of the Company’s rights, of possible defenses, of the Sentencing Guidelines’
provisions, and of the consequences of entering into this Deferred Prosecution Agreement. No
promises or inducements have been made other than those contained in this Deferred Prosecution
Agreement. Furthermore, no one has threatened or forced me, or to my knowledge any person
authorizing this Deferred Prosecution Agreement on behalf of the Company, in any way to enter into
this Deferred Prosecution Agreement. I am also satisfied with the attorney’s representation in
this matter. I certify that I am a director of the Company, and that I have been duly authorized
by the Board of Directors of the Company to execute this certificate on behalf of the Company.

	 	 	 

	/s/: Gary D. Henley

	 	9/22/10
	 	 	 
	Wright Medical Technology, Inc.

	 	
Date
	 
	 	 
	By: Gary D. Henley
	 	 

20

 

CERTIFICATE OF COUNSEL

     I am counsel for Wright Medical Technology, Inc. (the “Company”). In connection with such
representation, I have examined relevant Company documents, and have discussed this Deferred
Prosecution Agreement with the authorized representative of the Company. Based on my review of the
foregoing materials and discussions, I am of the opinion that:

     1. Gary D. Henley, President, Chief Executive Officer and a Director of the Company, is duly
authorized to enter into this Deferred Prosecution Agreement on behalf of the Company; and

     2. This Deferred Prosecution Agreement has been duly and validly authorized, executed and
delivered on behalf of the Company, and is a valid and binding obligation of the Company.

     Further, I have carefully reviewed every part of this Deferred Prosecution Agreement with
directors of the Company. I have fully advised these directors of the Company’s rights, of
possible defenses, of the Sentencing Guidelines’ provisions, and of the consequences of entering
into this Agreement. To my knowledge, the Company’s decision to enter into this Agreement is an
informed and voluntary one.

	 	 	 

	/s/: Karen F. Green, Esq.

	 	9/23/10
	 	 	 
	Karen F. Green, Esq.

	 	Date
	Wilmer Cutler Pickering Hale and Dorr LLP
	 	 

21

 

CERTIFIED COPY OF RESOLUTION

     Upon motion duly made, seconded, and unanimously carried by the affirmative vote of all the
Directors present, the following resolutions were adopted:

     WHEREAS, Wright Medical Technology, Inc.
(the “Company”) has been engaged in discussions with the United States Attorney’s Office for the
District of New Jersey (the “Office”) in connection with an investigation being conducted by that
Office;

     WHEREAS, the Board of the Company consents to resolution of these discussions by entering
into a deferred prosecution agreement that the Company Board of Directors has reviewed with outside
counsel representing the Company, relating to a criminal complaint to be filed in the U.S. District
Court for the District of New Jersey charging the Company with conspiracy to commit violations of
the federal anti-kickback statute;

     NOW THEREFORE, BE IT RESOLVED that Gary D. Henley, the Company’s President, Chief Executive
Officer and a Director, be, and hereby is authorized to execute the Deferred Prosecution Agreement
on behalf of the Company substantially in the same form as reviewed by the Company Board of
Directors at this meeting and as attached hereto as Exhibit A, and is authorized to execute the
Director’s Certificate attached thereto.

22

 

SECRETARY’S CERTIFICATION

     I, Raymond C. Kolls, the duly elected Secretary of Wright Medical Technology, Inc. (the
“Company”) a corporation duly organized under the laws of the State of Delaware, hereby certify
that the following is a true and exact copy of a resolution approved by the Board of Directors of
the Company at its telephonic meeting held on the 21st day of September, 2010;

     WHEREAS, Wright
Medical Technology, Inc. has been engaged in discussions with the United States Attorney’s Office
for the District of New Jersey (the “Office”) in connection with an investigation being conducted
by the Office into activities of the Company relating to certain payments to Consultants who have
selected orthopaedic hip and knee replacement products manufactured by the Company in surgeries
performed by them;

     WHEREAS, the Board of Directors of the Company consents to resolution of these
discussions on behalf of the Company by entering into a deferred prosecution agreement that the
Board of Directors has reviewed with outside counsel representing the Company, relating to a
criminal complaint to be filed in the U.S. District Court for the District of New Jersey charging
the Company with conspiracy to commit violations of the federal anti-kickback statute;

     NOW
THEREFORE, BE IT RESOLVED that Gary D. Henley, the Company’s President, Chief Executive Officer and
a Director be, and hereby is authorized to execute the Deferred Prosecution Agreement on behalf of
the Company substantially in the same form as reviewed by the Board of Directors at this meeting
and as attached hereto as Exhibit A, and is authorized to execute the Director’s Certificate
attached thereto.

     IN WITNESS WHEREOF, I have hereunto signed my name as Secretary and affixed the Seal of said
Corporation this 21st day of September, 2010.

	 	 	 

	 

	 	/s/: Raymond C. Kolls
	 	 	 
	 

	 	Raymond C. Kolls, Secretary

23exv10w1

EXHIBIT 10.1

 

 

FORM OF

WARRANT AGREEMENT

by and between

VISTEON CORPORATION

and

MELLON INVESTOR SERVICES LLC,

as Warrant Agent

Dated as of October 1, 2010

 

 

 

 

FORM OF

WARRANT AGREEMENT

     This WARRANT AGREEMENT (as amended, supplemented, amended and restated or otherwise modified
from time to time, this “Warrant Agreement”), is entered into as of October 1, 2010, by and
between VISTEON CORPORATION, a Delaware corporation (the “Company”), and Mellon Investor
Services LLC, a New Jersey limited liability company (operating with the service name BNY Mellon
Shareowner Services), as warrant agent (together with any successor appointed pursuant to
Section 20 hereof, the “Warrant Agent”).

     WHEREAS, pursuant to the terms and conditions of the Fifth Amended Joint Plan of
Reorganization of Visteon Corporation and its debtor affiliates pursuant to chapter 11 of title 11
of the United States Code (the “Bankruptcy Code”) filed on August 31, 2010 in the United
States Bankruptcy Court for the District of Delaware, Case No. 09-11786 (CSS) (as may be amended,
supplemented or otherwise modified from time to time, the “Plan”), the Company proposes to
issue Warrants (the “Warrants”) entitling the holders thereof to purchase up to 1,577,951
shares of common stock, par value $0.01 per share, of the Company (“Common Stock”) together
with any other securities, cash or other property that may be issuable upon exercise of a Warrant
as shall result from the adjustments specified in Section 12 hereof at an exercise price of
$58.80 per share of Common Stock, as may be adjusted pursuant to Section 12 hereof (the
“Exercise Price”);

     WHEREAS, the Warrants are being issued pursuant to, and upon the terms and conditions set
forth in, the Plan in an offering in reliance on the exemption from the registration requirements
of the Securities Act of 1933, as amended (the “Securities Act”) afforded by section 1145
of the Bankruptcy Code or Section 4(2) of the Securities Act, and of any applicable state
securities or “blue sky” laws;

     WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing so to act, in connection with the issuance of Warrants and other matters
as expressly provided herein; and

     WHEREAS, for purposes of this Warrant Agreement, “person” shall be interpreted broadly to
include an individual, firm, corporation, partnership, joint venture, association, joint stock
company, limited liability company, limited liability partnership, national banking association,
trust, trustee, estate, unincorporated organization, government, governmental unit, agency, or
political subdivision thereof, or other entity and shall include any successor (by merger or
otherwise) of such person.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth,
the parties hereto agree as follows:

     SECTION 1 Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent
to act as warrant agent for the Company in respect of the Warrants upon the express terms and
subject to the express conditions herein set forth (and no implied terms or conditions), and the
Warrant Agent hereby accepts such appointment, upon the express terms and express conditions
hereinafter set forth.

     SECTION 2 Issuance of Warrants. In accordance with Section 5 hereof and the
Plan and subject to the next sentence, the Company will cause to be issued to the Depository (as
defined below), one or more Global Warrant Certificates (as defined below) evidencing the Warrants.
At the election of a holder of Warrants and in lieu of holding Warrants through the Depository,
such holder may elect to be issued Warrants by book-entry registration on the books and records of
the Warrant Agent (“Book-Entry Warrants”) and such Warrants shall be evidenced by
statements issued by the Warrant Agent from time to time to the registered holder of book-entry
Warrants reflecting such book-entry position (the “Warrant Statement”). Each Warrant
entitles the holder, upon proper exercise and payment of the applicable Exercise Price, to receive
from the Company, one share of Common Stock (as may be adjusted pursuant to Section 12
hereof). The shares of Common Stock or (as provided pursuant to Section 12 hereof) other

 

 

shares of capital stock deliverable upon proper exercise of the Warrants are referred to
herein as the “Warrant Shares.” The words “holder” or “holders” as used
herein in respect of any Warrants or Warrant Shares, shall mean the registered holder or registered
holders thereof.

     SECTION 3 Warrant Certificates. Subject to Section 6 hereof, the Warrants
shall be issued (1) via book-entry registration on the books and records of the Warrant Agent and
evidenced by a Warrant Statement, and/or (2) in the form of one or more global certificates (the
“Global Warrant Certificates”), the forms of election to exercise and of assignment to be
printed on the reverse thereof, in substantially the form set forth in Exhibit A attached
hereto. The Warrant Statements and Global Warrant Certificates may bear such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Warrant Agreement, and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with the rules and regulations
of the Depository (as hereinafter defined), any law or with any rules made pursuant thereto or with
any rules of any securities exchange or as may, consistently herewith, be determined by (i) in the
case of Global Warrant Certificates, the Appropriate Officers (as hereinafter defined) executing
such Global Warrant Certificates, as evidenced by their execution of the Global Warrant
Certificates, or (ii) in the case of a Warrant Statement, any Appropriate Officer, and all of which
shall be reasonably acceptable to the Warrant Agent. The Global Warrant Certificates shall be
deposited on or after the date hereof with, or, so long as the Warrant Agent is Mellon Investor
Services LLC, with The Bank of New York Mellon as custodian for, The Depository Trust Company (the
“Depository”) and registered in the name of Cede & Co., as the Depository’s nominee. Each
Global Warrant Certificate shall represent such number of the outstanding Warrants as specified
therein, and each shall provide that it shall represent the aggregate amount of outstanding
Warrants from time to time endorsed thereon and that the aggregate amount of outstanding Warrants
represented thereby may from time to time be reduced or increased, as appropriate, in accordance
with the terms of this Warrant Agreement.

     SECTION 4 Execution of Warrant Certificates. Global Warrant Certificates shall be
signed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, any Vice
President, its Secretary or any Assistant Secretary (each, an “Appropriate Officer”). Each
such signature upon the Global Warrant Certificates may be in the form of a facsimile or other
electronically transmitted signature (including, without limitation, electronic transmission in
portable document format (.pdf)) of any such Appropriate Officer and may be imprinted or otherwise
reproduced on the Global Warrant Certificates and for that purpose the Company may adopt and use
the facsimile or other electronically transmitted signature of any Appropriate Officer who shall
have been an Appropriate Officer at the time of entering into this Warrant Agreement. If any
Appropriate Officer who shall have signed any of the Global Warrant Certificates shall cease to be
such Appropriate Officer before the Global Warrant Certificates so signed shall have been
countersigned by the Warrant Agent or delivered by the Company, such Global Warrant Certificates
nevertheless may be countersigned and delivered as though such Appropriate Officer had not ceased
to be such Appropriate Officer of the Company; and any Global Warrant Certificate may be signed on
behalf of the Company by any person who, at the actual date of the execution of such Global Warrant
Certificate, shall be a proper Appropriate Officer of the Company to sign such Global Warrant
Certificate, although at the date of the execution of this Warrant Agreement any such person was
not such Appropriate Officer.

     Global Warrant Certificates shall be dated the date of countersignature by the Warrant Agent
and shall represent one or more whole Warrants.

     SECTION 5 Registration and Countersignature. Upon receipt of a written order of the
Company, the Warrant Agent, on behalf of the Company, shall (i) register in the Warrant Register
(as defined below) the Book-Entry Warrants as well as any Global Warrant Certificates and exchanges
and transfers of outstanding Warrants in accordance with the procedures set forth in this Warrant
Agreement and (ii) upon receipt of the Global Warrant Certificates duly executed on behalf of the
Company, countersign one or more Global Warrant Certificates evidencing Warrants and shall deliver
such Global Warrant Certificates

2

 

to or upon the written order of the Company. Such written order of the Company shall
specifically state the number of Warrants that are to be issued as Book-Entry Warrants and the
number of Warrants that are to be issued as one or more Global Warrant Certificates. Each Warrant
(including the Book Entry Warrants and each Global Warrant Certificate) shall be, and shall remain,
subject to the provisions of this Warrant Agreement until such time as all of the Warrants
evidenced thereby shall have been duly exercised or shall have expired or been canceled in
accordance with the terms hereof. Each holder of Warrants shall be bound by all of the terms and
provisions of this Warrant Agreement (a copy of which is available on request to the Secretary of
the Company) as fully and effectively as if such holder had signed the same.

     No Global Warrant Certificate shall be valid for any purpose, and no Warrant evidenced thereby
shall be exercisable, until such Global Warrant Certificate has been countersigned by the manual or
facsimile signature of the Warrant Agent. Such signature by the Warrant Agent upon any Global
Warrant Certificate executed by the Company shall be conclusive evidence that such Global Warrant
Certificate so countersigned has been duly issued hereunder.

     The Warrant Agent shall keep, at an office designated for such purpose, books (the
“Warrant Register”) in which, subject to such reasonable regulations as it may prescribe,
it shall register the Book-Entry Warrants as well as any Global Warrant Certificates and exchanges
and transfers of outstanding Warrants in accordance with the procedures set forth in Section
6 hereof, all in form satisfactory to the Company and the Warrant Agent. The Company may
require payment of a sum sufficient to cover any stamp or other tax or charge that may be imposed
on the holder of a Warrant in connection with any such exchange or registration of transfer. The
Warrant Agent shall have no obligation to effect an exchange or register a transfer unless and
until any payments required by the immediately preceding sentence have been made.

     Prior to due presentment for registration of transfer or exchange of any Warrant in accordance
with the procedures set forth in this Warrant Agreement, the Warrant Agent and the Company may deem
and treat the person in whose name any Warrant is registered as the absolute owner of such Warrant
(notwithstanding any notation of ownership or other writing made in a Global Warrant Certificate by
anyone), for the purpose of any exercise thereof, any distribution to the holder of the Warrant
thereof and for all other purposes, and neither the Warrant Agent nor the Company shall be affected
by notice to the contrary.

     SECTION 6 Registration of Transfers and Exchanges.

          (a) Transfer and Exchange of Global Warrant Certificates or Beneficial Interests
Therein. The transfer and exchange of Global Warrant Certificates or beneficial interests
therein shall be effected through the Depository, in accordance with this Warrant Agreement and the
procedures of the Depository therefor.

          (b) Exchange of a Beneficial Interest in a Global Warrant Certificate for a Book-Entry
Warrant.

               (i) Any holder of a beneficial interest in a Global Warrant Certificate may, upon request,
exchange such beneficial interest for a Book-Entry Warrant. Upon receipt by the Warrant Agent from
the Depository or its nominee of written instructions or such other form of instructions as is
customary for the Depository on behalf of any person having a beneficial interest in a Global
Warrant Certificate, the Warrant Agent shall cause, in accordance with the standing instructions
and procedures existing between the Depository and the Warrant Agent, the number of Warrants
represented by the Global Warrant Certificate to be reduced by the number of Warrants to be
represented by the Book-Entry Warrants to be issued in exchange for the beneficial interest of such
person in the Global Warrant Certificate and, following such reduction, the Warrant Agent shall
register in the name of the holder a Book-Entry Warrant and deliver to said Warrant holder a
Warrant Statement.

3

 

               (ii) Book-Entry Warrants issued in exchange for a beneficial interest in a Global Warrant
Certificate pursuant to this Section 6(b) shall be registered in such names as the
Depository, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Warrant Agent. The Warrant Agent shall deliver such Warrant Statements to the persons
in whose names such Warrants are so registered.

          (c) Transfer and Exchange of Book-Entry Warrants. Book-Entry Warrants surrendered for
exchange or for registration of transfer shall be cancelled by the Warrant Agent. Such cancelled
Book-Entry Warrants shall then be disposed of by or at the direction of the Company in accordance
with applicable law. When Book-Entry Warrants are presented to or deposited with the Warrant Agent
with a written request:

               (i) to register the transfer of the Book-Entry Warrants; or

               (ii) to exchange such Book-Entry Warrants for an equal number of Book-Entry Warrants of other
authorized denominations,

then in each case the Warrant Agent shall register the transfer or make the exchange as requested
if its requirements for such transactions are met; provided, however, that the Warrant Agent has
received a written instruction of transfer in form satisfactory to the Warrant Agent, duly executed
by the holder thereof or by the duly appointed legal representative thereof or by his attorney,
duly authorized in writing.

          (d) Exchange or Transfer of a Book-Entry Warrant for a Beneficial Interest in a Global
Warrant Certificate. Upon receipt by the Warrant Agent of appropriate written instruments of
transfer with respect to a Book-Entry Warrant, in form satisfactory to the Warrant Agent, together
with written instructions directing the Warrant Agent to make, or to direct the Depository to make,
an endorsement on the Global Warrant Certificate to reflect an increase in the number of Warrants
represented by the Global Warrant Certificate equal to the number of Warrants represented by such
Book-Entry Warrant (such instruments of transfer and instructions to be duly executed by the holder
thereof or the duly appointed legal representative thereof or by his attorney, duly authorized in
writing, such signatures to be guaranteed by an eligible guarantor institution to the extent
required by the Warrant Agent or the Depositary), then the Warrant Agent shall cancel such
Book-Entry Warrant on the Warrant Register and cause, or direct the Depository to cause, in
accordance with the standing instructions and procedures existing between the Depository and the
Warrant Agent, the number of Warrants represented by the Global Warrant Certificate to be increased
accordingly. If no Global Warrant Certificates are then outstanding, the Company shall issue, and
the Warrant Agent shall countersign, a new Global Warrant Certificate representing the appropriate
number of Warrants.

          (e) Restrictions on Transfer and Exchange of Global Warrant Certificates.
Notwithstanding any other provisions of this Warrant Agreement (other than the provisions set forth
in Section 6(f) hereof), unless and until it is exchanged in whole for a Book-Entry
Warrant, a Global Warrant Certificate may not be transferred as a whole except by the Depository to
a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee
of the Depository or by the Depository or any such nominee to a successor Depository or a nominee
of such successor Depository.

          (f) Book-Entry Warrants. If at any time:

               (i) the Depository for the Global Warrant Certificates notifies the Company that the
Depository is unwilling or unable to continue as Depository for the Global Warrant Certificates and
a successor Depository for the Global Warrant Certificates is not appointed by the Company within
90 days after delivery of such notice; or

               (ii) the Company, in its sole discretion, notifies the Warrant Agent in writing that all
Warrants shall be exclusively in the form of Book-Entry Warrants, then the Warrant Agent, upon
receipt of written instructions signed by an Appropriate Officer of the Company and all other
necessary information, shall

4

 

register Book-Entry Warrants, in an aggregate number equal to the number of Warrants
represented by the Global Warrant Certificates, in exchange for such Global Warrant Certificates,
in such names and in such amounts as directed by the Depository or, in the absence of instructions
from the Depository, the Company.

          (g) Cancellation of Global Warrant Certificate. At such time as all beneficial
interests in Global Warrant Certificates have either been exchanged for Book-Entry Warrants,
redeemed, exercised, repurchased or cancelled, all Global Warrant Certificates shall be returned
to, or cancelled and retained pursuant to applicable law by, the Warrant Agent, upon written
instructions from the Company reasonably satisfactory to the Warrant Agent.

          (h) Obligations with Respect to Transfers and Exchanges of Warrants.

               (i) To permit registrations of transfers and exchanges, the Company shall execute and the
Warrant Agent is hereby authorized to countersign Global Warrant Certificates and the Warrant Agent
is hereby authorized to register Book-Entry Warrants, in accordance with the provisions of
Sections 3 and 4 hereof and this Section 6 and for the purpose of any
distribution of additional Global Warrant Certificates contemplated by Section 12 hereof.

               (ii) All Book-Entry Warrants and Global Warrant Certificates issued upon any registration of
transfer or exchange of Book-Entry Warrants or Global Warrant Certificates shall be the valid
obligations of the Company, entitled to the same benefits under this Warrant Agreement as the
Book-Entry Warrants or Global Warrant Certificates surrendered upon such registration of transfer
or exchange.

               (iii) So long as the Depository, or its nominee, is the registered owner of a Global Warrant
Certificate, the Depository or such nominee, as the case may be, may be treated by the Company, the
Warrant Agent and any agent of the Company or the Warrant Agent as the sole owner or holder of the
Warrants represented by such Global Warrant Certificate for all purposes under this Warrant
Agreement. Except as provided in Sections 6(b) and 6(f) hereof upon the exchange of
a beneficial interest in a Global Warrant Certificate for a Book-Entry Warrant, owners of
beneficial interests in a Global Warrant Certificate will not be entitled to have any Warrants
registered in their names, and will not receive or be entitled to receive physical delivery of any
such Warrants and will not be considered the owners or holders thereof under the Warrants or this
Warrant Agreement. Neither the Company nor the Warrant Agent, in its capacity as registrar for such
Warrants, will have any responsibility or liability for any aspect of the records relating to
beneficial interests in a Global Warrant Certificate or for maintaining, supervising or reviewing
any records relating to such beneficial interests. Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from
giving effect to any written certification, proxy or other authorization furnished by the
Depository or impair the operation of customary practices of the Depository governing the exercise
of the rights of a holder of a beneficial interest in a Global Warrant Certificate.

               (iv) Subject to Sections 6(b), (c) and (d) hereof and this Section
6(h), the Warrant Agent shall, upon receipt of all information required to be delivered
hereunder, from time to time register the transfer of any Book-Entry Warrants in the Warrant
Register and the transfer of any Global Warrant Certificates in the Warrant Register, upon
surrender of the Global Warrant Certificates representing such Warrants at the Warrant Agent office
designated for such purpose, which shall be located at 480 Washington Boulevard, 29th
Floor, Jersey City, NJ 07310 or such other location in the United States as the Warrant Agent shall
determine; provided that the Warrant Agent provides written notice of such determination to the
Company and the Warrant holders (the “Warrant Agent Office”), duly endorsed, and
accompanied by a completed form of assignment (or with respect to a Book-Entry Warrant, only such
completed form of assignment), duly signed by the holder thereof or by the duly appointed legal
representative thereof or by a duly authorized attorney, such signature to be guaranteed by an
eligible guarantor institution to the extent required by the Warrant Agent or the Depositary.

5

 

     Upon any such registration of transfer, a new Global Warrant Certificate or a Warrant
Statement, as the case may be, shall be issued to the transferee.

     SECTION 7 Acknowledgment; Securities Law Compliance. Each Warrant holder, by
its acceptance of any Warrant under this Warrant Agreement, acknowledges and agrees that the
Warrants were issued, and the Warrant Shares issuable upon exercise thereof shall be issued,
pursuant to an exemption from the registration requirement of Section 5 of the Securities Act
provided by Section 1145 of the Bankruptcy Code, and to the extent that a Warrant holder (or holder
of Warrant Shares) is an “underwriter” as defined in Section 1145(b)(1) of the Bankruptcy Code,
such holder may not be able to sell or transfer any Warrants or Warrant Shares in the absence of an
effective registration statement under the Securities Act or an exemption from registration
thereunder. Notwithstanding anything contained herein (but without limiting or modifying any
express obligation of the Warrant Agent hereunder), the Warrant Agent shall not be under any duty
or responsibility to ensure compliance by the Company, any Warrant holder (or holder of Warrant
Shares) or any other person with any applicable federal or state securities or bankruptcy laws.

     SECTION 8 Terms of Warrants; Exercise of Warrants.

          (a) Subject to the terms of this Warrant Agreement, each Warrant holder shall have the right,
which may be exercised at any time, and from time to time, in whole or in part, during the period
commencing on the date of original issuance of the Warrant Certificates pursuant to the terms of
this Warrant Agreement and ending at 5:00 p.m. New York City time, on October 1, 2015 (the
“Expiration Date”), to exercise each Warrant and receive from the Company the number of
fully paid and nonassessable Warrant Shares which the holder may at the time be entitled to receive
on exercise of such Warrants and payment of the aggregate Exercise Price then in effect for such
Warrant Shares. The Company shall, promptly after the Expiration Date, provide the Warrant Agent
with written notice of the Expiration Date. In addition, prior to the delivery of any Warrant
Shares that the Company shall be obligated to deliver upon proper exercise of the Warrants, the
Company shall comply with all applicable federal and state laws, rules and regulations which
require action to be taken by the Company.

          (b) Subject to the adjustments set forth in Section 12, each Warrant, when exercised,
will entitle the holder thereof to purchase one share of Common Stock at the Exercise Price then in
effect for such share of Common Stock. Each Warrant not exercised pursuant to this Warrant
Agreement prior to the Expiration Date shall become void and all rights thereunder and all rights
in respect thereof under this Warrant Agreement shall cease as of 5:00 p.m., New York City time, on
the Expiration Date.

          (c) Subject to the terms and conditions set forth herein, the holder of Warrants may, until
5:00 p.m. New York City time, on the Expiration Date, exercise, in whole or in part, at any time
or from time to time, such holder’s right to purchase Warrant Shares by:

               (i) providing written notice of such election (a “Warrant Exercise Notice”) to
exercise the Warrants to the Company and Warrant Agent at the Warrant Agent Office, by overnight
courier no later than 5:00 p.m. New York City time, on the Expiration Date, which Warrant Exercise
Notice shall be in the form of an election to purchase Warrant Shares substantially in the form set
forth either (x) in Exhibit B-1 hereto, properly completed and duly executed by the holder,
provided that such written notice may only be submitted by a holder with respect to Book-Entry
Warrants; or (y) in Exhibit B-2 hereto, properly completed and duly executed by the holder,
provided that such written notice may only be submitted with respect to Warrants held through the
book-entry facilities of the Depositary, by or through persons that are direct participants in the
Depositary;

               (ii) delivering no later than 5:00 p.m., New York City time, on the business day immediately
prior to the applicable Settlement Date (as defined below), such Warrants to the Warrant Agent by
book-entry transfer through the facilities of the Depository, if such Warrants are represented by a
Global Warrant Certificate; and

6

 

               (iii) subject to Section 8(h) below, paying the applicable aggregate Exercise Price
for all Warrants being exercised (the “Exercise Amount”), together with all applicable
taxes and charges. The date three business days after a Warrant Exercise Notice is delivered is
referred to for all purposes under this Warrant Agreement as the “Settlement Date”.

          (d) For purposes of this Section 8, the following terms shall have the meanings set
forth below:

          “Closing Price” means on any particular date (a) if the Warrant Shares are then listed
or quoted on a Trading Market, (i) the closing price per share of Warrant Shares on such date on
the principal Trading Market (as reported by Bloomberg L.P. or a similar organization or agency
succeeding to its functions of reporting prices) or (ii) if there shall have been no sales of
Warrant Shares on such principal Trading Market on such day, the average of the reported closing
bid and asked prices per share of Warrant Shares on such principal Trading Market (as reported by
Bloomberg L.P. or a similar organization or agency succeeding to its functions of reporting
prices), (b) if the Warrant Shares are not then listed or quoted on a Trading Market and if prices
for the Warrant Shares are then reported in the “pink sheets” published by Pink OTC Markets, Inc.
(or a similar organization or agency succeeding to its functions of reporting prices), the average
of the reported closing bid and asked prices per share of Warrant Shares so reported or (c) if the
shares of Warrant Shares are not then publicly traded the fair market value as of such date of a
share of Warrant Shares as reasonably determined in good faith by the Board of Directors of the
Company.

          “Trading Day” means (a) if the Warrant Shares are listed or quoted on a Trading
Market, a day on which the principal Trading Market is open for business or (b) if the Warrant
Shares are not listed or quoted on a Trading Market, a business day.

          “Trading Market” means any of the following markets or exchanges on which the Warrant
Shares are listed or quoted for trading on the date in question: the NYSE Amex Equities, the Nasdaq
Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock
Exchange or the OTC Bulletin Board.

          (e) To the extent a Warrant Exercise Notice is delivered in respect of a Warrant prior to 5:00
p.m., New York City time, on the Expiration Date, but the deliveries and payments specified in
Sections 8(a)(ii) and 8(a)(iii) above are effected thereafter but no later than
5:00 p.m., New York City time, on the Settlement Date, the Warrants shall be nonetheless deemed
exercised prior to the Expiration Date for the purposes of this Warrant Agreement.

          (f) Subject to the adjustments set forth in Section 12 hereof, each Warrant, when
exercised, will entitle the holder thereof to purchase one share of Common Stock at the Exercise
Price then in effect. Each Warrant not exercised pursuant to this Warrant Agreement prior to 5:00
p.m., New York City time, on the Expiration Date shall become void and all rights thereunder and
all rights in respect thereof under this Warrant Agreement shall cease as of such time.

          (g) Subject to Section 8(h), the Exercise Amount shall be payable in lawful
money of the United States of America either (i) by certified or official bank check made payable
to the order of the Company or (ii) by wire transfer in immediately available funds to an account
arranged with the Company prior to exercise.

          (h) In connection with the exercise of Warrants by the holder thereof, such holder shall have
the right, in lieu of paying the Exercise Amount for such Warrants in cash (a “Cashless
Exercise”), subject to the provisions of this Warrant Agreement, to instruct the Company to
reduce the number of Warrant Shares issuable to such holder upon exercise of such Warrants by
delivering to such holder a number of Warrant Shares determined in accordance with the following
formula:

	 	 	 	 	 	 	 	 	 

	Warrant Shares

	 	=
	 	(C – P)
	 	x
	 	W
	 

	 	 	 	 	 	 	 	 
	Issuable Following a 

Cashless Exercise

	 	 	 	C	 	 	 	 

7

 

          For purposes this Section 8(h), the above symbols shall have the following meanings
with respect to an exercise of Warrants by a holder thereof:

          “W” means the aggregate number of Warrant Shares issuable to such holder upon exercise of such
Warrants prior to any reduction pursuant to this Section 8(h);

          “P” means the Exercise Price applicable to the exercise of such Warrants; and

          “C” means the Closing Price on the date of exercise of such Warrants.

          For purposes of Rule 144 under the Securities Act (17 CFR §230.144), the Company agrees that
the exercise of Warrants in accordance with the Cashless Exercise option shall be deemed to be a
conversion of such Warrants, pursuant to the terms hereof, into Warrant Shares.

          (i) Any exercise of a Warrant pursuant to the terms of this Warrant Agreement shall be
irrevocable and shall constitute a binding agreement between the holder and the Company,
enforceable in accordance with its terms; provided that a holder may condition its exercise of a
Warrant on the consummation of a Reorganization Event (as defined below).

          (j) The Warrant Agent shall:

               (i) Examine all Warrant Exercise Notices and all other documents delivered to it by or on
behalf of holders as contemplated hereunder to ascertain whether, on their face, such Warrant
Exercise Notices and any such other documents have been executed and completed in accordance with
their terms;

               (ii) where a Warrant Exercise Notice or other document appears on its face, in the Warrant
Agent’s reasonable judgment, to have been improperly completed or executed or some other
irregularity in connection with the exercise of the Warrant exists, the Warrant Agent shall
endeavor to inform the appropriate parties (including the person submitting such instrument) of the
need for fulfillment of all requirements, specifying those requirements which appear to be
unfulfilled;

               (iii) inform the Company of and cooperate with and assist the Company in resolving any
reconciliation problems relating to the Warrant Exercise Notices received and delivery of Warrants
to the Warrant Agent’s account;

               (iv) advise the Company, no later than three business days after receipt of a Warrant Exercise
Notice, of (x) the receipt of such Warrant Exercise Notice and the number of Warrants exercised in
accordance with the terms and conditions of this Warrant Agreement, (y) the instructions with
respect to delivery of the Warrant Shares, subject to the timely receipt from the Depository of the
necessary information, and (z) such other information as the Company shall reasonably require; and

               (v) subject to the Warrant Shares being made available to the Warrant Agent by or on behalf of
the Company for delivery to the Depository, liaise with the Depository and endeavor to effect such
delivery to the relevant accounts at the Depository in accordance with its requirements.

          (k) All questions as to the validity, form and sufficiency (including time of receipt) of a
Warrant exercise shall be reasonably determined by the Company in good faith, which determination
shall be final and binding. The Warrant Agent shall incur no liability for or in respect of and,
except to the extent such liability arises from the Warrant Agent’s gross negligence, willful
misconduct or bad faith (each as determined by a final, non appealable order of a court of
competent jurisdiction), shall be indemnified and held harmless by the Company for acting or
refraining from acting upon, or as a result of such determination by the Company. The Company
reserves the right to reject any and all Warrant Exercise Notices not in proper form. Such
determination by the Company shall be final and binding on the holders,

8

 

absent manifest error. Moreover, the Company reserves the absolute right to waive any of the
conditions to the exercise of Warrants or defects in Warrant Exercise Notices with regard to any
particular exercise of Warrants. Neither the Company nor, subject to Section 8(j) above,
the Warrant Agent shall be under any duty to give notice to the holders of the Warrants of any
irregularities in any exercise of Warrants, nor shall it incur any liability for the failure to
give such notice.

          (l) As soon as reasonably practicable after the exercise of any Warrant, the Company shall
issue, or otherwise deliver, in authorized denominations to or upon the order of the holder of such
Warrant either:

               (i) if such holder holds the Warrants being exercised through the Depository’s book-entry
transfer facilities, by same-day or next-day credit to the Depository for the account of such
holder or for the account of a participant in the Depository the number of Warrant Shares to which
such holder is entitled, in each case registered in such name and delivered to such account as
directed in the Warrant Exercise Notice by such holder or by the direct participant in the
Depository through which such holder is acting; or

               (ii) if such holder holds the Warrants being exercised in the form of Book-Entry Warrants, a
book-entry interest in the Warrant Shares registered on the books of the transfer agent for the
Company’s Common Stock (such agent, in such capacity, as may from time to time be appointed by the
Company, the “Transfer Agent”) or, at the Company’s option, by delivery to the address
designated by such holder in its Warrant Exercise Notice of a physical certificate or certificates
representing the number of Warrant Shares to which such holder is entitled, in fully registered
form, registered in such name or names as may be directed by such holder. Such Warrant Shares shall
be deemed to have been issued and any person so designated to be named therein shall be deemed to
have become a holder of record of such Warrant Shares as of the close of business on the date of
the delivery thereof.

     Warrants shall be exercisable during the period provided for in Section 8(a) at the
election of the holder thereof, either as an entirety or from time to time for a portion of the
number of Warrant Shares issuable upon exercise of such Warrants. If less than all of the Warrants
evidenced by a Global Warrant Certificate surrendered upon the exercise of Warrants are exercised
at any time prior to 5:00 p.m., New York City time, on the Expiration Date, a new Global Warrant
Certificate or Certificates shall be issued for the remaining number of Warrants evidenced by the
Global Warrant Certificate so surrendered, and the Warrant Agent is hereby authorized to
countersign the new Global Warrant Certificate(s) pursuant to the provisions of Section 5
hereof and this Section 8. The person in whose name any certificate or certificates for the
Warrant Shares are to be issued (or such Warrant Shares are to be registered, in the case of a
book-entry transfer) upon exercise of a Warrant shall be deemed to have become the holder of record
of such Warrant Shares on the date such Warrant Exercise Notice is delivered.

          (m) For purposes of this Warrant Agreement, a “business day” means any day other than
a Saturday, Sunday or a day on which banking institutions in the State of New York or New Jersey
are authorized or obligated by law, regulation or executive order to close or remain closed. In
accordance with Section 14 hereof, no fractional shares shall be issued upon exercise of
any Warrants.

          (n) All Global Warrant Certificates surrendered upon exercise of Warrants shall be cancelled
by the Warrant Agent. Such cancelled Global Warrant Certificates shall then be disposed of by or at
the direction of the Company in accordance with applicable law. The Warrant Agent shall (x) advise
an authorized representative of the Company as directed by the Company by the end of each day or on
the next business day following each day on which Warrants were exercised, of (i) the number of
shares of Warrant Shares issued upon exercise of a Warrant, (ii) the delivery of Global Warrant
Certificates evidencing the balance, if any, of the shares of Common Stock issuable after such
exercise of the Warrant and (iii) such other information as the Company shall reasonably require
and (y) concurrently pay to the Company all funds received by the Warrant Agent in payment of the
aggregate Exercise Price. The Warrant Agent shall confirm such information to the Company in
writing.

9

 

          (o) The Warrant Agent shall keep copies of this Warrant Agreement and any notices given or
received hereunder, and, if requested, provide, at the Company’s expense, copies thereof to any
registered holder of the Warrants requesting, in writing, such copy prior to 5:00 p.m., New York
City time, on the Expiration Date. The Company shall supply the Warrant Agent from time to time
with such numbers of copies of this Warrant Agreement as the Warrant Agent may reasonably request.

     SECTION 9 Payment of Taxes. No service charge shall be made to any holder of a Warrant
for any exercise, exchange or registration of transfer of Warrants, and the Company will pay all
documentary stamp taxes attributable to the initial issuance of Warrant Shares upon the exercise of
Warrants; provided, however, that neither the Company nor the Warrant Agent shall be required to
pay any tax or taxes which may be payable in respect of any transfer involved in the issuance of
Warrant Shares or any certificates for Warrant Shares in a name other than that of the registered
holder of a Warrant surrendered upon the exercise of a Warrant, and the Company and the Warrant
Agent shall not be required to issue or deliver such Warrant Shares or the certificates
representing the Warrant Shares unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company and the Warrant Agent that such tax has been paid. The Warrant Agent
shall have no duty to deliver such Warrants Shares or the certificates representing such Warrant
Shares unless and until the Warrant Agent is reasonably satisfied that all such taxes and charges
have been paid.

     SECTION 10 Mutilated or Missing Warrant Certificates. The Company may issue and the
Warrant Agent shall countersign, upon receipt of evidence satisfactory to the Company and the
Warrant Agent of the loss, theft, mutilation or destruction of the Global Warrant Certificate in
lieu of the Global Warrant Certificate, a new warrant certificate of like tenor and amount in the
place of any Global Warrant Certificate theretofore issued by it, alleged to have been lost,
stolen, mutilated or destroyed, and the Company and the Warrant Agent may require the owner of the
lost, stolen, mutilated or destroyed certificate, or such owner’s legal representative, to give the
Company and the Warrant Agent an executed affidavit or indemnity agreement reasonably satisfactory
in form and substance to the Company and the Warrant Agent and a bond sufficient to indemnify them
against any claim that may be made against it on account of the alleged loss, theft or destruction
of any such Global Warrant Certificate or the issuance of such new certificate.

     SECTION 11 Reservation of Shares of Common Stock.

          (a) The Company will at all times reserve and keep available out of the aggregate of its
authorized but unissued shares of Common Stock, for the purpose of enabling it to satisfy any
obligation to issue shares of Common Stock upon exercise of Warrants, the maximum number of shares
of Common Stock that may then be deliverable upon the exercise of all outstanding Warrants, and the
Transfer Agent is hereby irrevocably authorized and directed at all times to reserve such number of
authorized and unissued or treasury shares of Common Stock as shall be required for such purpose.
The Company will keep a copy of this Warrant Agreement on file with the Transfer Agent and with
every transfer agent for any securities issuable upon exercise of Warrants. The Warrant Agent is
hereby irrevocably authorized and directed to requisition from time to time from the Transfer Agent
stock certificates issuable upon exercise of outstanding Warrants. The Company will supply the
Transfer Agent with duly executed stock certificates for such purpose and will, when necessary to
comply with this Warrant Agreement, upon request, provide or otherwise make available any cash that
may be payable as provided in Section 14. The Company will furnish the Transfer Agent with
a copy of all notices of adjustments and certificates related thereto, transmitted by the Company
to the Warrant Agent and each holder. The Warrant Agent shall have no duty or obligation to
investigate or confirm the accuracy of the information or the genuineness of the signatures
contained in such notices or certificates.

          (b) The Company covenants that all shares of Common Stock that may be issued upon exercise of
Warrants will be, upon payment of the aggregate Exercise Price and issuance thereof, duly
authorized,

10

 

validly issued, fully paid, nonassessable, free of preemptive rights and free from all taxes,
liens, charges and security interests with respect to the issue thereof (other than any liens,
charges and security interests created by the Warrant holder or the person to which the shares of
Common Stock are to be issued).

     SECTION 12 Adjustments. The number of shares of Common Stock for which a Warrant is
exercisable and the Exercise Price shall be subject to adjustment from time to time as set forth in
this Section 12.

          (a) Stock Dividends, Subdivisions, Combinations, Recapitalizations and
Reclassification.

               (i) If at any time the Company shall: (A) pay a dividend on its Common Stock (or make some
other distribution on its Common Stock) consisting of shares of Common Stock, (B) subdivide its
outstanding shares of Common Stock into a larger number of shares of Common Stock, or (C) combine
its outstanding shares of Common Stock into a smaller number of shares of Common Stock, then the
number of shares of Common Stock or other shares of capital stock for which a Warrant is
exercisable shall be adjusted so that the holder of each Warrant shall be entitled upon exercise to
receive the number of shares of Common Stock or other shares of capital stock that such Warrant
holder would have owned or have been entitled to receive after the happening of any of the events
described above, had such Warrant been exercised immediately prior to the happening of such event
(or, in the case of a dividend or distribution of Common Stock, immediately prior to the record
date therefor). An adjustment made pursuant to this Section 12(a) shall become effective
immediately upon and contemporaneously with the effectiveness of such event.

               (ii) Whenever the number of shares of Common Stock purchasable upon the exercise of any
Warrant is adjusted as herein provided in Section 12(a), the Exercise Price shall
be adjusted to equal (A) the Exercise Price immediately prior to such adjustment multiplied by the
number of shares of Common Stock for which a Warrant is exercisable immediately prior to such
adjustment divided by (B) the number of shares of Common Stock for which a Warrant is exercisable
immediately after such adjustment.

          (b) Extraordinary Dividends or Distributions. If the Company, at any time after the
date of this Warrant Agreement, pays a dividend or makes a distribution in securities or other
non-cash assets to the holders of Common Stock (in their capacity as such) or other shares of
capital stock into which the Warrants are convertible, other than (i) a dividend or distribution
described in Section 12(a)(i)(A), or (ii) distributions made to the holders
of Common Stock upon the consummation of a Reorganization Event (any such non-excluded dividends or
distributions, an “Extraordinary Dividend”), then the Exercise Price shall be decreased,
effective immediately after the effective date of such Extraordinary Dividend, dollar-for-dollar by
the fair market value (as reasonably determined in good faith by the Board of Directors of the
Company, without regard to any illiquidity or minority discounts) of any securities or other assets
paid or distributed on each share of Common Stock in respect of such Extraordinary Dividend.

          (c) Other Provisions Applicable to Adjustments under this Section. The following
provisions shall be applicable to the making of adjustments of the number of shares of Warrant
Shares for which a Warrant is exercisable and the Exercise Price provided for in this Section
12:

               (i) When Adjustments to Be Made. The adjustments required by this Section 12
shall be made whenever and as often as any specified event requiring an adjustment shall occur. For
the purpose of any adjustment, any specified event shall be deemed to have occurred at the close of
business on the date of its occurrence. All calculations shall be made to the nearest cent and to
the nearest one-thousandth of a share, as the case may be.

               (ii) Fractional Interests. In computing adjustments pursuant to this Section
12 (but subject to Section 14), fractional interests in Common Stock shall be
taken into account to the nearest 1/1000th of a share.

11

 

               (iii) Adjustments Not Made as of Settlement Date. If the adjustments required by this
Section 12 have not been made by the Settlement Date, and the shares to be received by a
Warrant holder on settlement are not entitled to participate in the relevant distribution or
transaction (because they were not held on a related record date or otherwise), then the Company
will adjust the number of shares that the Company will deliver to such Warrant holder in respect of
the relevant Trading Day to reflect the relevant distribution or transaction.

               (iv) When No Adjustment Required. No adjustment need be made under this Section
12 for any issuance of options, equity or equity-based grants or other securities pursuant to
the Company’s Management Equity Incentive Program (as defined in the Plan).

          (d) Reorganization, Reclassification, Merger or Consolidation of the Company.

               (i) If a Reorganization Event shall occur, as a condition to the consummation of such
Reorganization Event, effective provisions shall be made in the certificate of incorporation or
articles of incorporation of the continuing or surviving or acquiring or resulting entity, or in
any contract or agreement providing for such Reorganization Event, so that so long as any Warrant
remains outstanding, each Warrant, upon the exercise thereof at any time after the consummation of
such Reorganization Event, shall be exercisable into (at an initial Exercise Price equal to the
Exercise Price in effect immediately prior to such Reorganization Event), in lieu of the Warrant
Shares issuable upon such exercise prior to such consummation, solely the amount of cash,
securities or other property (“Substituted Property”) receivable pursuant to such
Reorganization Event by a holder of the number of shares of Warrant Shares for which a Warrant is
exercisable immediately prior to the effective time of such Reorganization Event assuming such
holder of Warrant Shares did not exercise its rights of election, if any, as to the kind or amount
of Substituted Property receivable upon such Reorganization Event (provided that, if the kind or
amount of Substituted Property receivable upon such Reorganization Event is not the same for each
share of Warrant Shares in respect of which such rights of election shall not have been exercised
(“nonelecting share”), then for the purposes of this Section 12(d)(i) the kind and
amount of Substituted Property receivable upon such Reorganization Event for each nonelecting share
shall be deemed to be the kind and amount so receivable per share by a plurality of the electing
shares). The provisions set forth herein providing for adjustments and otherwise for the protection
of the holders of Warrants shall thereafter continue to be applicable on an as nearly equivalent
basis as may be practicable and any such continuing or surviving or acquiring or resulting entity
shall expressly assume all of the obligations of the Company set forth herein to the extent
applicable.

               (ii) For purposes hereof, a “Reorganization Event” shall mean any transaction which
the Company enters into constituting (i) a consolidation, merger, share exchange or similar
transaction of the Company with or into another person pursuant to which the Common Stock is
changed into, converted into or exchanged for cash, securities or other property (whether of the
Company or another person); (ii) a reorganization, recapitalization or reclassification or similar
transaction in which the Common Stock is exchanged for securities other than Common Stock (other
than in circumstances covered by Section 12(a)); or (iii) a statutory exchange of the
outstanding shares of Common Stock for securities of another person (other than in connection with
a consolidation, merger, share exchange or other similar transaction).

          (e) Certain Limitations. Notwithstanding anything herein to the contrary, the Company
agrees not to enter into any transaction which, by reason of any adjustment hereunder, would cause
the Exercise Price to be less than the par value per share of Common Stock (if any) unless the
Company shall take such corporate action in order that the Company may validly and legally issue
fully paid and nonassessable shares of such Common Stock at such adjusted Exercise Price.

          (f) Notice to Warrant Agent. All adjustments made pursuant to this Section 12 shall
be made solely by the Company, and the Company shall promptly provide the Warrant Agent with
written notice of any such adjustment. The Warrant Agent shall be fully protected in relying on
such written notice and

12

 

on any adjustment or statement contained therein. The Warrant Agent has no duty to determine
when an adjustment under this Section 12 should be made (if at all) or how any such adjustment
should be made. The Warrant Agent makes no representation as to the validity or value of any
securities or assets issued upon exercise of Warrants. The Warrant Agent shall not be responsible
for any failure by the Company to comply with this Section 12. The Warrant Agent shall have no
duty or liability with respect to, and shall not be deemed to have knowledge of, any adjustment
under this Section 12 until it has received written notice thereof from the Company.

     SECTION 13 Priority Adjustments, Further Actions. If any single action would require
adjustment of the Exercise Price pursuant to more than one subsection of Section 12 hereof,
only one adjustment shall be made and such adjustment shall be the amount of adjustment that has
the highest, relative to the rights and interests of the holders of the Warrants then outstanding,
absolute value.

     SECTION 14 Fractional Shares. The Company shall not be required to issue fractional
shares of Common Stock upon the exercise of the Warrants if it elects, if otherwise permitted, to
make a cash payment in respect of any final fraction of a share upon such exercise (after
aggregating all fractional shares of each holder). If more than one Warrant shall be presented for
exercise at the same time by the same holder, the number of full shares of Common Stock that shall
be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of
shares of Common Stock purchasable on exercise of all of the Warrants so presented. If any fraction
of a share of Common Stock would, except for the provisions of this Section 14, be issuable
on the exercise of any Warrants (or specified portion thereof), the Company shall notify the
Warrant Agent in writing of the amount to be paid in lieu of the fraction of a share of Common
Stock and concurrently pay or provide to the Warrant Agent for payment to the Warrant holder an
amount in cash equal to the product of (i) such fraction of a share of Common Stock and (ii) the
Closing Price of a share of Common Stock for the Trading Day immediately preceding the date the
Warrant was presented for exercise pursuant to Section 8 hereof. The Warrant Agent shall be
fully protected in relying on such notice and shall have no duty with respect to, and shall not be
deemed to have knowledge of, any payment for Warrant Shares under any Section of this Warrant
Agreement relating to the payment of fractional Warrant Shares unless and until the Warrant Agent
shall have received such notice and sufficient monies.

     SECTION 15 Warrant Holders not Stockholders. Nothing contained in this Warrant
Agreement or in any of the Global Warrant Certificates shall be construed as conferring upon the
holders of any Warrant (solely in its capacity as a holder of a Warrant) (i) the right to vote or
to consent or to receive notice as stockholders in respect of the meetings of stockholders or the
election of directors of the Company or any other matter for which stockholders are entitled to
vote or to attend any such meetings or any other proceedings of the holders of Common Stock; (ii)
without limiting the provisions of Section 12 hereof, the right to receive any cash
dividends, stock dividends, allotments or rights or other distributions paid, allotted or
distributed or distributable to the holders of Common Stock prior to, or for which the relevant
record date precedes, the date of the exercise of such Warrant; or (iii) any other rights
whatsoever as stockholders of the Company. The Warrant Agent shall have no duty to monitor or
enforce compliance with this provision.

     SECTION 16 No Redemption. The Company shall not have any right to redeem any of the
Warrants evidenced hereby.

     SECTION 17 Merger, Consolidation or Change of Name of Warrant Agent. Any person into
which the Warrant Agent may be merged or converted or with which it may be consolidated, or any
person resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a
party, or any person succeeding to all or substantially all of the shareowner services, corporate
trust or agency business of the Warrant Agent, shall be the successor to the Warrant Agent
hereunder without the execution or filing of any paper or any further act on the part of any of the
parties hereto. If, at the time such successor to the Warrant Agent by merger or consolidation
succeeds to the agency created by this

13

 

Warrant Agreement, any of the Global Warrant Certificates shall have been countersigned but
not delivered, any such successor to the Warrant Agent may adopt the countersignature of the
original Warrant Agent; and if, at that time any of the Global Warrant Certificates shall not have
been countersigned, any such successor to the Warrant Agent may countersign such Global Warrant
Certificates either in the name of the predecessor Warrant Agent or in the name of the successor
Warrant Agent; and in all such cases such Global Warrant Certificates shall have the full force and
effect provided in the Global Warrant Certificates in this Warrant Agreement. If at any time the
name of the Warrant Agent shall be changed and at such time any of the Global Warrant Certificates
shall have been countersigned but not delivered, the Warrant Agent whose name has changed may adopt
the countersignature under its prior name; and if at that time any of the Global Warrant
Certificates shall not have been countersigned, the Warrant Agent may countersign such Global
Warrant Certificates either in its prior name or in its changed name; and in all such cases such
Global Warrant Certificates shall have the full force provided in the Global Warrant Certificates
and in this Warrant Agreement.

     SECTION 18 Warrant Agent. The Warrant Agent undertakes only the duties and obligations
expressly imposed by this Warrant Agreement upon the following terms and conditions, by all of
which the Company and the holders of Warrants, by their acceptance thereof, shall be bound:

          (a) The Warrant Agent may rely conclusively and shall be protected in acting upon any order,
judgment, instruction, notice, demand, certificate, opinion or advice of counsel (including counsel
chosen by or who may be an employee of the Warrant Agent or one of its affiliates), statement,
instrument, report or other paper or document (not only as to its due execution and the validity
and effectiveness of its provisions, but also as to the truth and acceptability and of information
therein contained) which is believed by the Warrant Agent, in the absence of bad faith, to be
genuine and to be signed or presented by the proper person or persons as set forth in Section
18(d).

          (b) The Warrant Agent shall have no duties, responsibilities or obligations as the Warrant
Agent except those which are expressly set forth herein, and in any modification or amendment
hereof to which the Warrant Agent has consented in writing, and no duties, responsibilities or
obligations shall be implied or inferred. Without limiting the foregoing, unless otherwise
expressly provided in this Warrant Agreement, the Warrant Agent shall not be subject to, nor be
required to comply with, or determine if any Person has complied with, the Warrants or any other
agreement between or among the parties hereto, even though reference thereto may be made in this
Warrant Agreement, or to comply with any notice, instruction, direction, request or other
communication, paper or document other than as expressly set forth in this Warrant Agreement.

          (c) The statements contained herein and in the Global Warrant Certificates shall be deemed to
be statements of the Company only. The Warrant Agent assumes no responsibility for the accuracy or
correctness of any of the same and shall not be required to verify the same.

          (d) Whenever in the performance of its duties under this Warrant Agreement the Warrant Agent
deems it necessary or desirable that any fact or matter be proved or established by the Company
prior to taking, suffering or omitting to take any action hereunder, the Warrant Agent is hereby
authorized and directed to accept written instructions with respect to the performance of its
duties hereunder from an Appropriate Officer and to apply to the Appropriate Officers for advice or
instructions in connection with its duties, and such instructions shall be full authorization to
the Warrant Agent and, absent gross negligence, bad faith or willful misconduct (each as determined
by a final, non-appealable judgment of a court of competent jurisdiction), the Warrant Agent shall
not be liable for any action taken, suffered, or omitted to be taken by it in accordance with the
instructions of any such Appropriate Officer or in reliance upon any statement signed by any one of
such Appropriate Officers with respect to any fact or matter which may be deemed to be conclusively
proved and established by such signed statement. In the event the Warrant Agent reasonably
believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction,
request or other communication, paper or document received by the Warrant Agent

14

 

hereunder, or is uncertain of any action to take hereunder, the Warrant Agent, may,
following prior written notice to the Company, in its discretion, refrain from taking any action,
and shall be fully protected and shall not be liable in any way to the Company or any other person
or entity for refraining from taking such action, unless the Warrant Agent receives written
instructions signed by the Company which eliminates such ambiguity or uncertainty to the reasonable
satisfaction of the Warrant Agent.

          (e) The Warrant Agent shall not be responsible for any failure of the Company to comply with
any of the covenants contained in this Warrant Agreement (including, without limitation, any
adjustment of the Exercise Price pursuant to Section 12 hereof, the authorization or
reservation of shares of Common Stock pursuant to Section 11 hereof, and the due execution
and delivery by the Company of this Warrant Agreement or any Global Warrant Certificate) or in the
Global Warrant Certificates to be complied with by the Company.

          (f) The Warrant Agent may consult at any time with counsel satisfactory to it (who may be
counsel for the Company or an employee of the Warrant Agent), and the advice and opinion of such
counsel will be, when relied upon without bad faith by the Warrant Agent, full and complete
authorization to the Warrant Agent as to, and the Warrant Agent shall incur no liability or
responsibility to the Company or to any holder of any Warrant in respect of, any action taken,
suffered or omitted by it hereunder and in accordance with such opinion or the advice of such
counsel and in the absence of bad faith.

          (g) The Warrant Agent shall incur no liability or responsibility to the Company or to any
holder of any Warrant or to any other person for any action taken in reliance on any Global Warrant
Certificate, Warrant Statement, certificate representing shares of Common Stock, notice,
resolution, waiver, consent, order, certificate, or other paper, document or instrument believed by
it to be genuine and to have been signed, sent or presented by the proper party or parties. The
Warrant Agent shall not be bound by any notice or demand, or any waiver, modification, termination
or revision of this Warrant Agreement or any of the terms hereof, unless evidenced by a writing
between and signed by, the Company and the Warrant Agent. The Warrant Agent shall not be required
to take instructions or directions except those given in accordance with this Warrant Agreement.

          (h) The Warrant Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself or by or through its attorneys, accountants, agents or
other experts, and the Warrant Agent will not be answerable or accountable for any act, default,
neglect or unintentional misconduct of any such attorneys or agents or for any loss to the Company
or the holders of the Warrants resulting from any such act, default, neglect or unintentional
misconduct, absent gross negligence, willful misconduct or bad faith (as each is determined by a
final non-appealable order of a court of competent jurisdiction) in the selection and continued
employment or engagement thereof.

          (i) The Warrant Agent will not be under any duty or responsibility to insure compliance with
any applicable federal or state securities laws in connection with the issuance, transfer or
exchange of Global Warrant Certificates.

          (j) Notwithstanding anything to the contrary contained herein, the Warrant Agent shall not
incur any liability for not performing, or a delay in the performance of, any act, duty, obligation
or responsibility by reason of any occurrence beyond the control of the Warrant Agent (including,
without limitation, any act or provision of any present or future law or regulation or governmental
authority, any act of God, war, civil or military disobedience or disorder, riot, rebellion,
terrorism, insurrection, fire, earthquake, storm, flood, strike, work stoppage, labor dispute or
failure of any utilities or means of communication or computer (software or hardware) services).

          (k) The Company agrees to pay to the Warrant Agent reasonable compensation for all services
rendered by the Warrant Agent in the negotiation, preparation, delivery, administration, amendment
and execution of this Warrant Agreement and the exercise and performance of its duties hereunder,
to reimburse the Warrant Agent for all reasonable expenses (including reasonable counsel fees and

15

 

disbursements), taxes (including withholding taxes) and charges and other charges of any kind
and nature actually incurred by the Warrant Agent in the negotiation, preparation, administration,
amendment, execution, delivery and performance of its duties and responsibilities under this
Warrant Agreement, in each case in accordance with and subject to that certain schedule of fees,
dated August 30, 2010, delivered by the Warrant Agent to the Company, and to indemnify the Warrant
Agent and save it harmless against any and all losses, liabilities and expenses, including
judgments, damages, fines, penalties, claims, demands, costs and counsel fees and expenses, for any
action taken or omitted to be taken by the Warrant Agent, or any person acting on behalf of the
Warrant Agent, arising out of or in connection with this Warrant Agreement except as a result of
its gross negligence, bad faith or willful misconduct (each as determined by a final,
non-appealable order of a court of competent jurisdiction). The costs and expenses incurred by the
Warrant Agent in successfully enforcing this right to indemnification shall be paid by the Company
except to the extent that it is determined by a final, non-appealable order of a court of competent
jurisdiction that the Warrant Agent is not entitled to indemnification hereunder.

          (l) The Warrant Agent, shall be under no obligation to institute any action, suit or legal
proceeding or to take any other action likely to involve expense or liability unless the Company or
one or more holders of Global Warrant Certificates shall furnish the Warrant Agent with reasonable
security and indemnity for any costs and expenses which may be incurred, but this provision shall
not affect the power of the Warrant Agent to take such action as it may consider proper, whether
with or without any such security or indemnity. All rights of action under this Warrant Agreement
or under any of the Warrants may be enforced by the Warrant Agent without the possession of any of
the Warrants or the production thereof at any trial or other proceeding relative thereto, and any
such action, suit or proceeding instituted by the Warrant Agent shall be brought in its name as
Warrant Agent and any recovery of judgment shall be for the ratable benefit of the holders of the
Warrants, as their respective rights or interests may appear.

          (m) Except as otherwise prohibited by applicable law, the Warrant Agent, and any member,
stockholder, affiliate, director, officer or employee of the Warrant Agent, may buy, sell or deal
in any of the Warrants or other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend money to the Company
or otherwise act as fully and freely as though it were not Warrant Agent under this Warrant
Agreement, or a member, stockholder, affiliate, director, officer or employee of the Warrant Agent,
as the case may be. Nothing herein shall preclude the Warrant Agent from acting in any other
capacity for the Company or for any other legal entity.

          (n) The Warrant Agent shall act hereunder solely as agent for the Company, and its duties
shall be determined solely by the express provisions hereof. The Warrant Agent shall not be liable
for anything which it may do or refrain from doing in connection with this Warrant Agreement,
except for its own gross negligence, bad faith or willful misconduct (each as determined by a
final, non-appealable order of a court of competent jurisdiction); provided that notwithstanding
anything in this Warrant Agreement to the contrary, in no event shall the Warrant Agent be liable
for special, incidental, punitive, indirect or consequential loss or damage of any kind whatsoever
(including, without limitation, lost profits). Notwithstanding anything contained herein to the
contrary, the Warrant Agent’s aggregate liability during any term of this Warrant Agreement with
respect to, arising from, or arising in connection with this Warrant Agreement, or from all
services provided or omitted to be provided under this Warrant Agreement, whether in contract, or
in tort, or otherwise (in each case, other than any liability arising from or arising in connection
with willful misconduct (as determined by a final, non appealable order of a court of competent
jurisdiction) on the part of the Warrant Agent), is limited to, and shall not exceed, an amount
equal to 3x the amounts paid hereunder by the Company to the Warrant Agent as fees and charges, but
not including reimbursable expenses.

          (o) The Warrant Agent shall not at any time be under any duty or responsibility to any holder
of any Warrant to make or cause to be made any adjustment of the Exercise Price or number of the
shares of

16

 

Common Stock or other securities or property deliverable as provided in this Warrant
Agreement, or to determine whether any facts exist which may require any of such adjustments, or
with respect to the nature or extent of any such adjustments, when made, or with respect to the
method employed in making the same. The Warrant Agent shall not be accountable with respect to the
validity or value or the kind or amount of any shares of Common Stock or of any securities or
property which may at any time be issued or delivered upon the exercise of any Warrant or with
respect to whether any such shares of Common Stock or other securities will when issued be validly
issued and fully paid and nonassessable, and makes no representation with respect thereto. The
Warrant Agent shall not be accountable to confirm or verify the accuracy or necessity of any
calculation.

          (p) The Company agrees to perform, execute and acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other acts, instruments, and
assurances as may reasonably be required by the Warrant Agent for the carrying out or performing of
the provisions of this Warrant Agreement.

          (q) The Warrant Agent shall have no responsibility or liability with respect to the validity
of this Warrant Agreement or the execution and delivery hereof (except its countersignature hereof)
or with respect to the validity or execution of any Warrant (except its countersignature thereof);
nor shall it be responsible for any breach by the Company of any covenant or condition contained in
this Warrant Agreement or in any Warrant; nor shall it be responsible to make or be liable for any
adjustments required under any provision hereof, including but not limited to Section 11
hereof, or responsible for the manner, method or amount of any such adjustment or the ascertaining
of the existence of facts that would require any such adjustment; nor shall it by any act hereunder
be deemed to make any representation or warranty as to the authorization or reservation of any
shares of Common Stock to be issued pursuant to this Warrant Agreement or any Warrant or as to
whether any shares of Common Stock will, when issued, be validly issued and fully paid and
nonassessable or as to the Exercise Price or the number of Warrant Shares issuable upon exercise of
any warrant.

          (r) Notwithstanding anything to the contrary contained herein, the Company shall make all
determinations with respect to Cashless Exercises, and the Warrant Agent shall have no duty or
obligation to investigate or confirm whether the Company’s determination regarding the number of
Shares to be issued in the event of a Cashless Exercise is accurate or correct. Notwithstanding
anything to the contrary contained herein, the Warrant Agent shall also have no duty or obligation
to investigate or confirm whether any determination of the Exercise Amount under Section 8
is correct or accurate.

          (s) No provision of this Warrant Agreement shall require the Warrant Agent to expend or risk
its own funds or otherwise incur any financial liability in the performance of any of its duties
hereunder or in the exercise of its rights.

          (t) All rights and obligations contained in this Section 18 and Section 19
hereof shall survive the termination of this Warrant Agreement and the resignation, replacement or
removal of the Warrant Agent.

     SECTION 19 Expenses. All expenses incident to the Company’s performance of or
compliance with this Warrant Agreement will be borne by the Company, including, without limitation:
(i) all expenses of printing Global Warrant Certificates; (ii) messenger and delivery services and
telephone calls; (iii) all fees and disbursements of counsel for the Company; (iv) all fees and
disbursements of independent certified public accountants or knowledgeable experts selected by the
Company; and (v) the Company’s internal expenses (including, without limitation, all salaries and
expenses of their officers and employees performing legal or accounting duties).

     SECTION 20 Change of Warrant Agent.

          (a) If the Company terminates the Warrant Agent or the Warrant Agent shall become incapable of
acting as Warrant Agent or shall resign as provided below, the Company shall appoint a successor to
such Warrant Agent. If the Company shall fail to make such appointment within a period of thirty
(30) days

17

 

after it has terminated the Warrant Agent or it has been notified in writing of a resignation
or incapacity by the Warrant Agent, then any holder of a Warrant may apply to any court of
competent jurisdiction for the appointment of a successor to the Warrant Agent. Pending appointment
of a successor to the Warrant Agent, either by the Company or by such a court, the duties of the
Warrant Agent shall be carried out by the Company. Any successor Warrant Agent, whether appointed
by the Company or by such a court, shall be in good standing, incorporated under the laws of any
state or of the United States of America. As soon as practicable after appointment of the successor
Warrant Agent, the Company shall cause written notice of the change in the Warrant Agent to be
given to each of the holders of the Warrants at such holder’s address appearing on the Warrant
Register. After appointment, the successor to the Warrant Agent shall be vested with the same
powers, rights, duties and responsibilities as if it had been originally named as Warrant Agent
without further act or deed. The former Warrant Agent shall deliver and transfer to the successor
to the Warrant Agent any property at the time held by it hereunder and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Failure to give any notice
provided for in this Section 20, however, or any defect therein, shall not affect the
legality or validity of the appointment of a successor to the Warrant Agent.

          (b) The Warrant Agent may resign at any time and be discharged from the obligations hereby
created by so notifying the Company in writing at least thirty (30) days in advance of the proposed
effective date of its resignation. If no successor Warrant Agent accepts the engagement hereunder
by such time, the Company shall act as Warrant Agent.

     SECTION 21 Notices to the Company and Warrant Agent. Any notice or demand authorized or
permitted by this Warrant Agreement to be given or made by the Warrant Agent or by any holder of
the Warrants to or on the Company to be effective shall be in writing (including by facsimile), and
shall be deemed to have been duly given or made when delivered by hand, or two (2) business days
after being delivered to a recognized courier (whose stated terms of delivery are two (2) business
days or less to the destination of such notice), or five (5) days after being deposited in the
mail, first class and postage prepaid or, in the case of facsimile notice, when received, addressed
as follows (until another address or facsimile number is filed in writing by the Company with the
Warrant Agent):

Visteon Corporation

One Village Center Drive

Van Buren Township, Michigan 48111

Facsimile: (734) 710-7112

Attention: Chief Financial Officer

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

Pachulski Stang Ziehl & Jones LLP

919 North Market Street, 17th Floor

Wilmington, Delaware 19899-8705

Facsimile: (302) 652-4400

Attention: Laura Davis Jones

James E. O’Neill

Mark M. Billion

and

Kirkland & Ellis LLP

300 North LaSalle

Chicago, Illinois 60654

Facsimile: (312) 862-2200

Attention: James H. M. Sprayregen, P.C.

18

 

James J. Mazza, Jr.

Gerald T. Nowak, P.C.

Howard Norber

and

Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022

Facsimile: (212) 446-4900

Attention: Marc Kieselstein, P.C.

Brian S. Lennon

Any notice or demand pursuant to this Warrant Agreement to be given by the Company or by any
holder(s) of the Warrants to the Warrant Agent shall be sufficiently given if sent in the same
manner as notices or demands are to be given or made to or on the Company (as set forth above) to
the Warrant Agent as follows (until another address is filed in writing by the Warrant Agent with
the Company):

Mellon Investor Services LLC

200 W. Monroe Street, Suite 1590

Chicago, IL 60606

Attention: Peter Sablich, Vice President

with a copy to:

Mellon Investor Services LLC

480 Washington Boulevard — 29th Floor

Jersey City, NJ 07310

Attention: Legal Department

     SECTION 22 Supplements and Amendments. The Company and the Warrant Agent may from time
to time supplement or amend this Warrant Agreement (a) without the approval of any holders of
Warrants in order to cure any ambiguity, manifest error or other mistake in this Warrant Agreement
or to correct or supplement any provision contained herein that may be defective or inconsistent
with any other provision herein, or to make any other provisions in regard to matters or questions
arising hereunder that the Company may deem necessary or desirable and that shall not adversely
affect the rights or interests of the holders of Warrants or (b) with the prior written consent of
holders of the Warrants exercisable for a majority of the shares of Common Stock then issuable upon
exercise of the Warrants then outstanding; provided, however, that the consent of each holder of a
Warrant affected shall be required for any amendment of this Warrant Agreement that would (i)
increase the Exercise Price or decrease the number of shares of Common Stock purchasable upon
exercise of the Warrants, except that such consent shall not be required for any adjustment to the
Exercise Price or the number of shares of Common Stock purchasable if made pursuant to the
provisions of Section 12 hereof, (ii) alter the Company’s obligation to issue Warrant
Shares upon exercise of the underlying Warrant (other than pursuant to adjustments otherwise
provided for in this Warrant Agreement, including the adjustments provided for in Section
12 hereof), (iii) change the Expiration Date of the Warrants to an earlier date, (iv) waive the
application of the adjustment provisions contained in Section 12 in connection with any
events to which such provisions apply or otherwise modify the adjustment provisions contained in
Section 12 in a manner that would have an adverse economic impact on the holders of
Warrants, or (v) treat such holder differently in an adverse way from any other holder of Warrants.
The Warrant Agent may, but shall not be obligated to, execute

19

 

any amendment or supplement which affects the rights or changes or increases the duties or
obligations of the Warrant Agent.

     SECTION 23 Successors. All the covenants and provisions of this Warrant Agreement by or
for the benefit of the Company, the holders of the Warrants or the Warrant Agent shall bind and
inure to the benefit of their respective successors and assigns hereunder.

     SECTION 24 Termination. This Warrant Agreement shall terminate at 5:00 p.m., New York
City time, on the Expiration Date (or, at 5:00 p.m., New York City time, on the Settlement Date
with respect to any Warrant Exercise Notice delivered prior to 5:00 p.m., New York City time, on
the Expiration Date). Notwithstanding the foregoing, this Warrant Agreement will terminate on such
earlier date on which all outstanding Warrants have been exercised. The provisions of Section 18
and Section 19 shall survive such termination and the resignation or removal of the Warrant Agent.
Termination of this Warrant Agreement shall not relieve the Company or the Warrant Agent of any of
their obligations arising prior to the date of such termination or in connection with the
settlement of any Warrant exercised prior to 5:00 p.m., New York City time, on the Expiration Date.

     SECTION 25 Governing Law. This Warrant Agreement and each Warrant issued hereunder
shall be deemed to be a contract made under the laws of the State of New York and for all purposes
shall be governed by and construed in accordance with the laws of the State of New York without
giving effect to conflict of laws principles. The parties hereto irrevocably consent to the
jurisdiction of the courts of the State of New York and any federal court located in such state in
connection with any action, suit or proceeding arising out of or relating to this Warrant
Agreement.

     SECTION 26 Benefits of this Warrant Agreement. This Warrant Agreement shall be for the
sole and exclusive benefit of the Company, the Warrant Agent and the holders of the Warrants, and
nothing in this Warrant Agreement shall be construed to give to any person other than the Company,
the Warrant Agent and the holders of the Warrants any legal or equitable right, remedy or claim
under this Warrant Agreement. Each holder, by acceptance of a Warrant, agrees to all of the terms
and provisions of this Warrant Agreement applicable thereto.

     SECTION 27 Counterparts. This Warrant Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and
all such counterparts shall together constitute but one and the same instrument.

     SECTION 28 Further Assurances. From time to time on and after the date hereof, the
Company shall deliver or cause to be delivered to the Warrant Agent such further documents and
instruments and shall do and cause to be done such further acts as the Warrant Agent shall
reasonably request (it being understood that the Warrant Agent shall have no obligation to make
such request) to carry out more effectively the provisions and purposes of this Warrant Agreement,
to evidence compliance herewith or to assure itself that it is protected hereunder.

     SECTION 29 Entire Agreement. This Warrant Agreement and the Global Warrant
Certificates constitute the entire agreement of the Company, the Warrant Agent and the holders of
the Warrants with respect to the subject matter hereof and supersede all prior agreements and
undertakings, both written and oral, among the Company, the Warrant Agent and the holders of the
Warrants with respect to the subject matter hereof. Except as expressly made herein, the Company
makes no representation, warranty, covenant or agreement with respect to the Warrants.

     SECTION 30 Severability. Wherever possible, each provision of this Warrant Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Warrant Agreement;
provided, however, that if such excluded or added provision shall affect the rights, immunities,
duties or obligations of the Warrant

20

 

Agent, the Warrant Agent shall be entitled to resign immediately upon notification in writing
to the Company.

     SECTION 31 Force Majeure. In no event shall the Warrant Agent be responsible or liable
for any failure or delay in the performance of its obligations under this Warrant Agreement arising
out of or caused by, directly or indirectly, forces beyond its reasonable control, including
without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software or hardware) services.

     SECTION 32 Customer Identification Program. Each person that is a party hereto
acknowledges that the Warrant Agent is subject to the customer identification program (“Customer
Identification Program”) requirements under the USA PATRIOT Act and its implementing regulations
(collectively, the “Patriot Act”), and that the Warrant Agent must, whenever required under
the Patriot Act, obtain, verify and record information that allows the Warrant Agent to identify
each such person. Accordingly, the Warrant Agent may request information from any such person that
will help the Warrant Agent to identify such person, including without limitation, as applicable,
such person’s physical address, tax identification number, organizational documents, certificate of
good standing or license to do business. Each person that is a party hereto agrees that, to the
extent required under the Patriot Act, the Warrant Agent cannot take certain actions under this
Warrant Agreement until the Warrant Agent verifies each such person’s identity in accordance with
the Customer Identification Program requirements (it being understood that the Warrant Agent will
use its reasonable best efforts to complete such verification as promptly as practicable).

     SECTION 33 Disclosure Regarding Incentive Compensation Program. The Company
acknowledges that The Bank of New York Mellon Corporation (“BNYM”) has adopted an incentive
compensation program designed (i) to facilitate clients gaining access to and being provided with
explanations about the full range of products and services offered by BNYM and its subsidiaries and
(ii) to expand and develop client relationships. This program may lead to the payment of referral
fees and/or bonuses by BNYM or it affiliates to employees of BNYM or its subsidiaries who may have
been involved in a referral that resulted in the execution of this Warrant Agreement, obtaining
products or services covered by this Warrant Agreement or products or services that may be
ancillary or supplemental to such products or services. Any such referral fees or bonuses are
funded solely out of fees and commissions paid under this Warrant Agreement or with respect to such
ancillary or supplemental products or services. For the avoidance of doubt, this Section 33 is
solely for disclosure purposes, and nothing contained in this Section 33 shall or shall be
deemed to require the payment of any amounts by the Company and neither the Company nor any other
person (other than BNYM and its affiliates) shall have any obligations or liabilities under or in
connection with this Section 33 or the incentive compensation program described herein.

* * * * *

21

 

     IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement to be duly executed,
as of the day and year first above written.

	 	 	 	 	 
	 	VISTEON CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MELLON INVESTOR SERVICES LLC,

as Warrant Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

22

 

	 	 	 	 	 

EXHIBIT A

FORM OF GLOBAL WARRANT CERTIFICATE

FORM OF FACE OF GLOBAL WARRANT CERTIFICATE

VOID AFTER 5:00 P.M., NEW YORK CITY TIME, ON OCTOBER 1, 2015

THE SALE, ASSIGNMENT, PLEDGE, ENCUMBRANCE, EXCHANGE OR OTHER TRANSFER OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE IS SUBJECT TO THE TERMS OF THE WARRANT AGREEMENT, DATED AS OF OCTOBER 1, 2010
(THE “WARRANT AGREEMENT”), BETWEEN THE ISSUER OF THIS CERTIFICATE AND THE WARRANT AGENT
NAMED THEREIN. BY ACCEPTING ANY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE, THE
RECIPIENT OF SUCH SECURITIES SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL OF THE
PROVISIONS OF THE WARRANT AGREEMENT. A COPY OF THE WARRANT AGREEMENT MAY BE OBTAINED UPON WRITTEN
REQUEST TO THE CORPORATE SECRETARY OF THE ISSUER OF THIS CERTIFICATE.

	 	 	 

	NO. W-1
	 	WARRANT TO PURCHASE
	 
	 	___SHARES OF COMMON
	 
	 	STOCK

VISTEON CORPORATION

WARRANT TO PURCHASE COMMON STOCK, PAR VALUE $0.01 PER SHARE

CUSIP # [_____]

DISTRIBUTION DATE: [_____], 2010

     This Global Warrant Certificate certifies that Cede & Co., or its registered assigns, is the
registered holder of a Warrant (this “Warrant”) of VISTEON CORPORATION, a Delaware
corporation (the “Company”), to purchase the number of shares of common stock, par value
$0.01 per share (“Common Stock”), of the Company set forth above (as adjusted from time to
time in accordance with the terms of the Warrant Agreement). This Global Warrant expires at 5:00
p.m., New York City time on October 1, 2015 (the “Expiration Date”) and entitles the holder
upon exercise at any time, and from time to time, in whole or in part, on or after the date of this
Warrant Certificate and prior to the Expiration Date to purchase from the Company up to the number
of fully paid and nonassessable shares of Common Stock set forth above at an exercise price of
$58.80 per share of Common Stock (as adjusted from time to time in accordance with the terms of the
Warrant Agreement, the “Exercise Price”). The Exercise Price and the number of shares of
Common Stock purchasable upon exercise of this Warrant are subject to adjustment upon the
occurrence of certain events as set forth in the Warrant Agreement.

     REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS GLOBAL WARRANT CERTIFICATE SET
FORTH ON THE REVERSE HEREOF. SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS
THOUGH FULLY SET FORTH AT THIS PLACE.

     This Global Warrant Certificate shall not be valid unless countersigned by the Warrant Agent.

     All capitalized terms used herein and not defined herein shall have the meanings assigned to
them in the Warrant Agreement.

 

 

     IN WITNESS WHEREOF, the Company has caused this Global Warrant Certificate to be executed by
its duly authorized officers as of the date below set forth.

Dated: _____ , 2010

	 	 	 	 	 
	VISTEON CORPORATION

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Countersigned:

	 	 	 	 	 
	MELLON INVESTOR SERVICES LLC,

as Warrant Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Address of Registered Holder for Notices (until changed in accordance with the Warrant Agreement):

	 	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

[Signature Page to Global Warrant Certificate]

 

 

FORM OF REVERSE OF GLOBAL WARRANT CERTIFICATE

     The Warrant evidenced by this Global Warrant Certificate is a part of a duly authorized issue
of Warrants to purchase up to                    shares of Common Stock issued pursuant to the Warrant Agreement. The
Warrant Agreement is hereby incorporated by reference herein and made a part of this instrument and
is hereby referred to for a description of the rights, limitation of rights, obligations, duties
and immunities thereunder of the Warrant Agent, the Company and the registered holders of the
Warrants. All capitalized terms used but not defined herein shall have the meanings assigned to
them in the Warrant Agreement.

     Upon due presentment for registration of transfer of the Warrant and surrender of this Global
Warrant Certificate at the office of the Warrant Agent designated for such purpose, a new Global
Warrant Certificate or Global Warrant Certificates of like tenor and evidencing in the aggregate a
like number of Warrants shall be issued to the transferee in exchange for this Global Warrant
Certificate, subject to the limitations set forth in the Warrant Agreement, without charge except
for any applicable tax or other charge.

     Subject to Section 14 of the Warrant Agreement, the Company shall not be required to issue
fractional shares of Common Stock.

     No Warrants may be sold, exchanged or otherwise transferred in violation of the Securities Act
state securities laws or other applicable law. The Warrant does not entitle the registered holder
thereof to any of the rights of a stockholder of the Company.

     The Company and Warrant Agent may deem and treat the registered holder hereof as the absolute
owner of this Global Warrant Certificate (notwithstanding any notation of ownership or other
writing hereon made by anyone other than the Company or the Warrant Agent) for the purpose of any
exercise hereof and for all other purposes, and neither the Company nor the Warrant Agent shall be
affected by any notice to the contrary.

     This Global Warrant Certificate is held by The Depository Trust Company (the
“Depository”) or its nominee in custody for the benefit of the beneficial owners hereof,
and is not transferable to any Person under any circumstances except that (i) this Global Warrant
Certificate may be transferred in whole pursuant to Section 6(e) of the Warrant Agreement (as
hereinafter defined) and (ii) this Global Warrant Certificate may be delivered to the Warrant Agent
for cancellation pursuant to Sections 6(g) and 8(n) of the Warrant Agreement.

     Unless this Global Warrant Certificate is presented by an authorized representative of the
Depository to the Company or the Warrant Agent for registration of transfer, exchange or payment
and any certificate issued is registered in the name of Cede & Co., or such other entity as is
requested by an authorized representative of the Depository (and any payment hereon is made to Cede
& Co. or to such other entity as is requested by an authorized representative of the Depository),
any transfer, pledge or other use hereof for value or otherwise by or to any Person is wrongful
because the registered owner hereof, Cede & Co., has an interest herein.

     No registration or transfer of the securities issuable pursuant to the Warrant will be
recorded on the books and records of the Company or the Warrant Agent until the provisions set
forth in the Warrant Agreement have been complied with.

     In the event of any conflict or inconsistency between this Global Warrant Certificate and the
Warrant Agreement, the Warrant Agreement shall control.

 

 

EXHIBIT B-1

EXERCISE FORM FOR HOLDERS

HOLDING BOOK-ENTRY WARRANTS

(To be executed upon exercise of the Warrant(s))

The undersigned hereby irrevocably elects to exercise the right, represented by the Book-Entry
Warrant(s), to purchase shares of Common Stock of Visteon Corporation and (check one or both):

	 	 ̈  	 	herewith tenders in payment for                    shares of Common Stock an amount
of $                   by certified or official bank check made payable to the order
of Visteon Corporation or by wire transfer in immediately
available funds to an account arranged with Visteon Corporation;
and/or
	 
	 	 ̈  	 	herewith tenders the Warrant(s) for                    shares of Common Stock
pursuant to the cashless exercise provision of Section 8 (h) of
the Warrant Agreement.

Please check below if this exercise is contingent upon the consummation of a Reorganization Event
as provided in Sections 8(i) and 12(d) of the Warrant Agreement:

	 	 ̈  	 	This exercise is being made in connection with a Reorganization
Event; provided, that in the event the Reorganization Event shall
not be consummated, then this exercise shall be deemed to be
revoked.

The undersigned requests that a statement representing the shares of Common Stock issued upon
exercise of the Warrant(s) be delivered in accordance with the instructions set forth below.

Dated: ________, 20____

THIS EXERCISE NOTICE MUST BE DELIVERED TO THE WARRANT AGENT, PRIOR TO 5:00 P.M., NEW YORK CITY
TIME, ON THE EXPIRATION DATE.

ALL CAPITALIZED TERMS USED HEREIN BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASSIGNED TO THEM
IN THE WARRANT AGREEMENT.

THE UNDERSIGNED REQUESTS THAT A STATEMENT REPRESENTING THE SHARES OF COMMON STOCK BE DELIVERED AS
FOLLOWS:

	 	 	 	 	 

	Name:

	 	 	 	 
	 

	 	 	 	 
	 

	 	(Please Print)	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Telephone:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Fax:
	 	 	 	 
	 

	 	 	 	 

Social Security Number or Other Taxpayer Identification Number (if applicable):

________

 

 

IF SAID NUMBER OF SHARES SHALL NOT BE ALL THE SHARES PURCHASABLE UNDER THE WARRANT(S), THE
UNDERSIGNED REQUESTS THAT NEW BOOK-ENTRY WARRANT(S) REPRESENTING THE BALANCE OF SUCH WARRANT(S)
SHALL BE REGISTERED AS FOLLOWS:

	 	 	 	 	 

	Name:

	 	 	 	 
	 

	 	 	 	 
	 

	 	(Please Print)	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Telephone:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Fax:
	 	 	 	 

Social Security Number or Other Taxpayer Identification Number (if applicable):
                        

	 	 	 	 	 

	Signature:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 

	Capacity in which Signing:

	 	 	 	 
	 

	 	 	 	 
	 
	SIGNATURE GUARANTEED BY:
	 	 	 	 
	 

	 	 	 	 

     Signatures must be guaranteed by a participant in a Medallion Signature Guarantee Program at a
guarantee level acceptable to the Company’s Rights Agent.

 

 

EXHIBIT B-2

EXERCISE FORM FOR HOLDERS

HOLDING WARRANTS THROUGH THE DEPOSITORY TRUST COMPANY

TO BE COMPLETED BY DIRECT PARTICIPANT

IN THE DEPOSITORY TRUST COMPANY

(To be executed upon exercise of the Warrant(s))

The undersigned hereby irrevocably elects to exercise the right, represented by Global Warrant
Certificate No. ___ held for its benefit through the book-entry facilities of The Depository Trust
Company (the “Depository”), to purchase                  shares of Common Stock of Visteon Corporation and (check
one or both):

	 	 ̈ 	 	herewith tenders in payment for such shares an amount of $                 by
certified or official bank check made payable to the order of
Visteon Corporation or by wire transfer in immediately available
funds to an account arranged with Visteon Corporation; and/or
	 
	 	 ̈ 	 	herewith tenders the Warrant(s) for                  shares of Common Stock
pursuant to the cashless exercise provision of Section 8 (h) of
the Warrant Agreement.

Please check below if this exercise is contingent upon the consummation of a Reorganization Event
as provided in Sections 8(i) and 12(d) of the Warrant Agreement:

	 	 ̈ 	 	This exercise is being made in connection with a Reorganization
Event; provided, that in the event the Reorganization Event shall
not be consummated, then this exercise shall be deemed to be
revoked.

The undersigned requests that the shares of Common Stock issuable upon exercise of the Warrant(s)
be in registered form in the authorized denominations, registered in such names and delivered, all
as specified in accordance with the instructions set forth below; provided, that if the
shares of Common Stock are evidenced by global securities, the shares of Common Stock shall be
registered in the name of the Depository or its nominee.

     Dated: _________, 20___

THIS EXERCISE NOTICE MUST BE DELIVERED TO THE WARRANT AGENT, PRIOR TO 5:00 P.M., NEW YORK CITY
TIME, ON THE EXPIRATION DATE. THE WARRANT AGENT SHALL NOTIFY YOU OF (1) THE WARRANT AGENT’S ACCOUNT
AT THE DEPOSITORY TO WHICH YOU MUST DELIVER YOUR WARRANT(S) ON THE EXERCISE DATE AND (2) THE
ADDRESS, PHONE NUMBER AND FACSIMILE NUMBER WHERE YOU CAN CONTACT THE WARRANT AGENT AND TO WHICH
WARRANT EXERCISE NOTICES ARE TO BE SUBMITTED.

ALL CAPITALIZED TERMS USED HEREIN BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASSIGNED TO THEM
IN THE WARRANT AGREEMENT.

 

 

NAME OF DIRECT PARTICIPANT IN THE DEPOSITORY:

	 	 	 	 	 

	Account Name
	 	 	 	 
	 
	 	 	 	 
	 
	 	(Please Print)	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Contact Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Telephone:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Fax:
	 	 	 	 
	 

	 	 	 	 

Social Security Number or Other Taxpayer Identification Number (if applicable): ___________________

Account from which Warrant(s) are Being Delivered: ___________________

Depository Account Number: ___________________

WARRANT HOLDER DELIVERING WARRANT(S), IF OTHER THAN THE DIRECT PARTICIPANT: Name:

	 	 	 	 	 

	Name
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Contact Name::
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Telephone:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Fax:
	 	 	 	 
	 

	 	 	 	 

Account from which the Shares of Common Stock are to be Credited: ___________________

Depository Account Number:
___________________

 

 

FILL IN FOR DELIVERY OF THE COMMON STOCK, IF OTHER THAN TO THE PERSON DELIVERING THIS WARRANT
EXERCISE NOTICE:

	 	 	 	 	 

	Name:
	 	 	 	 
	 
	 	 	 	 
	 
	 	(Please Print)	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Contact Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Telephone:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Fax:
	 	 	 	 
	 

	 	 	 	 

Social Security Number or Other Taxpayer Identification Number (if applicable):
___________________

	 	 	 	 	 

	Signature:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 

	Capacity in which Signing:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Signature Guaranteed By:

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