Document:

exv10w12

Exhibit 10.12

EXECUTION VERSION

Wells Fargo Bank, National Association

375 Park Avenue, NY 4073

New York, NY 10152

Telephone: 212-214-6101

Facsimile: 212-214-5913

June 14, 2011

			
	To:	 	Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention: Treasurer

Telephone No.: (609) 275-0500

Facsimile No.: (609) 750-4264

			
	Re:	 	Additional Call Option Transaction

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the call option transaction entered into between Wells Fargo Bank, National
Association (“Dealer”) and Integra LifeSciences Holdings Corporation (“Counterparty”) as of the
Trade Date specified below (the “Transaction”). This letter agreement constitutes a “Confirmation”
as referred to in the ISDA Master Agreement specified below. This Confirmation shall replace any
previous agreements and serve as the final documentation for the Transaction.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”), are incorporated into this Confirmation. In the event of any inconsistency between the
Equity Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms
used herein are based on terms that are defined in the Offering Memorandum dated June 9, 2011 (the
“Offering Memorandum”) relating to the 1.625% Convertible Senior Notes due 2016 (as originally
issued by Counterparty, the “Convertible Notes” and each USD 1,000 principal amount of Convertible
Notes, a “Convertible Note”) issued by Counterparty in an aggregate initial principal amount of USD
230,000,000 pursuant to an Indenture to be dated June 15, 2011 between Counterparty and Wells Fargo
Bank, National Association, as trustee (the “Indenture”). In the event of any inconsistency
between the terms defined in the Offering Memorandum, the Indenture and this Confirmation, this
Confirmation shall govern. The parties acknowledge that this Confirmation is entered into on the
date hereof with the understanding that (i) definitions set forth in the Indenture that are also
defined herein by reference to the Indenture and (ii) sections of the Indenture that are referred
to herein will conform to the descriptions thereof in the Offering Memorandum. For the avoidance
of doubt, references herein to sections of the Indenture are based on the draft of the Indenture
most recently reviewed by the parties at the time of execution of this Confirmation. If any
relevant sections of the Indenture are changed, added or renumbered following execution of this
Confirmation but prior to the execution of the Indenture, the parties will amend this Confirmation
in good faith to preserve the economic intent of the parties based on the draft of the Indenture so
reviewed. The parties further acknowledge that references to the Indenture herein are references to
the Indenture as in effect on the date of its execution and if the Indenture is amended following
its execution, any such amendment will be disregarded for purposes of this Confirmation unless the
parties agree otherwise in writing.

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

1. This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as
to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master
Agreement (the “Agreement”) as if Dealer and
Counterparty had executed an agreement in such form (but without any Schedule except for (i) the
election of the

 

 

laws of the State of New York as the governing law (without reference to choice of
law doctrine); (ii) the election that the “Cross Default” provisions of Section 5(a)(vi) of the
Agreement shall apply to both parties, provided that (a) the phrase “or becoming capable at such
time of being declared” shall be deleted from clause (1) of such Section 5(a)(vi); (b) the
following language shall be added to the end thereof: “Notwithstanding the foregoing, a default
under subsection (2) hereof shall not constitute an Event of Default if (i) the default was caused
solely by error or omission of an administrative or operational nature; (ii) funds were available
to enable the party to make the payment when due; and (iii) the payment is made within two Local
Business Days of such party’s receipt of written notice of its failure to pay.”; (c) “Specified
Indebtedness” will have the meaning specified in Section 14 of the Agreement, except that such term
shall not include obligations in respect of deposits received in the ordinary course of a party’s
banking business; and (d) “Threshold Amount” means in relation to Dealer, three percent (3%) of
shareholders’ equity of Wells Fargo & Company (the “Dealer Parent”) and in relation to
Counterparty, USD 25 million.)) on the Trade Date. In the event of any inconsistency between
provisions of the Agreement and this Confirmation, this Confirmation will prevail for the purpose
of the Transaction to which this Confirmation relates. The parties hereby agree that no
transaction other than the Transaction to which this Confirmation relates shall be governed by the
Agreement.

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

	 	 	 

	General Terms.
	 	 
	 
	 	 
	Trade Date:

	 	June 14, 2011
	 
	 	 
	Effective Date:

	 	The third Exchange Business Day immediately prior to the Premium Payment Date
	 
	 	 
	Option Style:

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

	 	Call
	 
	 	 
	Buyer:

	 	Counterparty
	 
	 	 
	Seller:

	 	Dealer
	 
	 	 
	Shares:

	 	The common stock of Counterparty, par value USD 0.01 per share (Exchange symbol “IART”).
	 
	 	 
	Number of Options:

	 	30,000. For the avoidance of doubt, the Number of Options shall be
reduced by any Options exercised by Counterparty. In no event will the Number of
Options be less than zero.
	 
	 	 
	Applicable Percentage:

	 	20% 
	 
	 	 
	Option Entitlement:

	 	A number equal to the product of the Applicable Percentage and 17.4092.
	 
	 	 
	Strike Price:

	 	USD 57.441 
	 
	 	 
	Premium:

	 	USD 1,119,000 
	 
	 	 
	Premium Payment Date:

	 	June 15, 2011
	 
	 	 
	Exchange:

	 	The NASDAQ Global Select Market
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Excluded Provisions:

	 	Section 14.03 and Section 14.04(g) of the Indenture.

2

 

	 	 	 

	Procedures for Exercise.
	 	 
	 
	 	 
	Conversion Date:

	 	With respect to any conversion of a Convertible Note, the date on which
the Holder (as such term is defined in the Indenture) of such Convertible Note
satisfies all of the requirements for conversion thereof as set forth in Sections
14.02(b) and (c) of the Indenture.
	 
	 	 
	Free Convertibility Date:

	 	June 15, 2016
	 
	 	 
	Expiration Time:

	 	The Valuation Time
	 
	 	 
	Expiration Date:

	 	December 15, 2016, subject to earlier exercise.
	 
	 	 
	Multiple Exercise:

	 	Applicable, as described under “Automatic Exercise” below.
	 
	 	 
	Automatic Exercise:

	 	Notwithstanding Section 3.4 of the Equity Definitions, on each
Conversion Date, a number of Options equal to (i) the number of Convertible Notes
in denominations of USD 1,000 as to which such Conversion Date has occurred minus
(ii) the number of Options that are or are deemed to be automatically exercised on
such Conversion Date under the Base Call Option Transaction Confirmation letter
agreement dated June 9, 2011 between Dealer and Counterparty (the “Base Call
Option Confirmation”) shall be deemed to be automatically exercised; provided that
such Options shall be exercised or deemed to be exercised only if Counterparty has
provided a Notice of Exercise to Dealer in accordance with “Notice of Exercise”
below.
	 
	 	 
	 

	 	Notwithstanding the foregoing, in no event shall
the number of Options that are exercised or
deemed exercised hereunder exceed the Number of
Options.
	 
	 	 
	Notice of Exercise:

	 	Notwithstanding anything to the contrary in the Equity Definitions
or under “Automatic Exercise” above, in order to exercise any Options, Counterparty
must notify Dealer in writing before (i) 5:00 p.m. (New York City time) on the
Scheduled Valid Day immediately preceding the scheduled first day of the Settlement
Averaging Period for the Options being exercised or (ii) 5:00 p.m. (New York City
time) on the fifth Scheduled Valid Day immediately following the scheduled first
day of the Settlement Averaging Period for the Options being exercised (in which
case the Calculation Agent will determine the adjustment to be made to any one or
more of the Strike Price, Number of Options, Option Entitlement and any other
variable relevant to the exercise, settlement or payment for the Transaction in a
commercially reasonable manner as appropriate to reflect the additional costs
(including, but not limited to, hedging mismatches and market losses) and
reasonable expenses incurred by Dealer in connection with its hedging activities
(including the unwinding of any hedge position) due to such notification occurring
after the time specified in the immediately preceding clause (i)) of (w) the

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	 	number of such Options (without regard to any
adjustments by the Calculation Agent in
accordance with the immediately preceding clause
(ii)) and (x) the scheduled first day of the
Settlement Averaging Period and the scheduled
Settlement Date, (y) the Relevant Settlement
Method for such Options, and (z) if the Relevant
Settlement Method for such Options is not Net
Share Settlement (as defined below), the
percentage of each Share issuable upon conversion
in excess of the principal portion of the
Convertible Notes being converted that will be
paid in cash (the “Cash Percentage”), and such
notice shall also include the information,
representations, acknowledgements and agreements
required pursuant to “Settlement Method Election
Conditions” below; provided that in respect of
any Options relating to Convertible Notes with a
Conversion Date occurring on or after the Free
Convertibility Date, (A) such notice may be given
on or prior to the second Scheduled Valid Day
immediately preceding the Expiration Date and
need only specify the information required in
clause (w) above, and (B) if the Relevant
Settlement Method for such Options is not Net
Share Settlement, Dealer shall have received a
separate notice (the “Notice of Final Settlement
Method”) in respect of all such Convertible Notes
before 5:00 p.m. (New York City time) on or prior
to the Free Convertibility Date specifying the
information required in clauses (y) and (z)
above, as well as the information,
representations, acknowledgements and agreements
required pursuant to “Settlement Method Election
Conditions” below.
	 
	 	 
	Valuation Time:

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

	 	Section 6.3(a) of the Equity Definitions is hereby replaced in its entirety by the following:
	 
	 	 
	 

	 	“‘Market Disruption Event’ means, in respect of a
Share, (i) a failure by the primary U.S. national
or regional securities exchange or market on
which the Shares are listed or admitted for
trading to open for trading during its regular
trading session or (ii) the occurrence or
existence prior to 1:00 p.m., New York City time,
on any Scheduled Valid Day for the Shares for
more than one half-hour period in the aggregate
during regular trading hours of any suspension or
limitation imposed on trading (by reason of
movements in price exceeding limits permitted by
the relevant stock exchange or otherwise) in the
Shares or in any options, contracts or future
contracts relating to the Shares.”
	 
	 	 
	Settlement Terms.
	 	 
	 
	 	 
	Settlement Method:

	 	For any Option, Net Share Settlement; provided that if the Relevant Settlement Method set forth below for such

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	 	Option is not Net Share Settlement, then the
Settlement Method for such Option shall be such
Relevant Settlement Method, but only if the
Settlement Method Election Conditions have been
satisfied and Counterparty shall have notified
Dealer of the Relevant Settlement Method in the
Notice of Exercise or Notice of Final Settlement
Method, as applicable, for such Option.
	 
	 	 
	Relevant Settlement Method:

	 	In respect of any Option, subject to the Settlement Method Election Conditions:
	 
	 	 
	 

	 	(i) if Counterparty has not specified a Cash
Percentage or has specified a Cash Percentage of
0% in respect of settling its conversion
obligations in respect of the related Convertible
Note pursuant to Section 14.02(a)(i) of the
Indenture, then, in either case, the Relevant
Settlement Method for such Option shall be Net
Share Settlement;
	 
	 	 
	 

	 	(ii) if Counterparty has specified a Cash
Percentage of between 0% and 100% in respect of
settling its conversion obligations in respect of
the related Convertible Note pursuant to Section
14.02(a)(i) of the Indenture, then the Relevant
Settlement Method for such Option shall be
Combination Settlement; and
	 
	 	 
	 

	 	(iii) if Counterparty has specified a Cash
Percentage of 100% in respect of settling its
conversion obligations in respect of the related
Convertible Note pursuant to Section 14.02(a)(i)
of the Indenture, then the Relevant Settlement
Method for such Option shall be Cash Settlement.
	 
	 	 
	Settlement Method Election Conditions:

	 	For any Relevant Settlement Method other than Net
Share Settlement, such Relevant Settlement Method shall apply to an Option only if
the Notice of Exercise or Notice of Final Settlement Method for such Option, as
applicable, contains:
	 
	 	 
	 

	 	(i)   a representation that, on the date of such
Notice of Exercise or Notice of Final
Settlement Method, as applicable,
Counterparty is not in possession of any
material non-public information with respect
to Counterparty or the Shares;

	 
	 	 
	 

	 	(ii)   a representation that Counterparty is
electing the settlement method for the
related Convertible Note and such Relevant
Settlement Method in good faith and not as
part of a plan or scheme to evade the
prohibitions of Rule 10b-5 under the
Securities Exchange Act of 1934, as amended
(the “Exchange Act”);

	 
	 	 
	 

	 	(iii)  a representation that Counterparty has not
entered into or altered any hedging
transaction relating to the Shares
corresponding to or offsetting the
Transaction;

5

 

	 	 	 

	 

	 	(iv)   a representation that Counterparty is not
electing the settlement method for the
related Convertible Note and such Relevant
Settlement Method to create actual or
apparent trading activity in the Shares (or
any security convertible into or
exchangeable for the Shares) or to raise or
depress or otherwise manipulate the price of
the Shares (or any security convertible into
or exchangeable for the Shares); and

	 
	 	 
	 

	 	(v)   an acknowledgment by Counterparty that (A)
any transaction by Dealer following
Counterparty’s election of the settlement
method for the related Convertible Note and
such Relevant Settlement Method shall be
made at Dealer’s sole discretion and for
Dealer’s own account and (B) Counterparty
does not have, and shall not attempt to
exercise, any influence over how, when,
whether or at what price to effect such
transactions, including, without limitation,
the price paid or received per Share
pursuant to such transactions, or whether
such transactions are made on any securities
exchange or privately.

	 
	 	 
	Net Share Settlement:

	 	If Net Share Settlement is applicable to any Option
exercised or deemed exercised hereunder, Dealer will deliver to Counterparty, on
the relevant Settlement Date for each such Option, a number of Shares (the “Net
Share Settlement Amount”) equal to the sum, for each Valid Day during the
Settlement Averaging Period for each such Option, of (i) the Daily Option Value for
such Valid Day, divided by (ii) the Relevant Price on such Valid Day, divided by
(iii) the number of Valid Days in the Settlement Averaging Period.
	 
	 	 
	 

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

	 	If Combination Settlement is applicable to any Option exercised
or deemed exercised hereunder, Dealer will pay or deliver, as the case may be, to
Counterparty, on the relevant Settlement Date for each such Option:
	 
	 	 
	 

	 	(i)   cash in an amount equal to the sum, for
each Valid Day during the Settlement
Averaging Period for such Option, of (i) the
Daily Option Value for such Valid Day,
divided by (ii) the number of Valid Days in
the Settlement Averaging Period, multiplied
by (iii) the Cash Percentage; and

	 
	 	 
	 

	 	(ii)   a number of Shares (the “Combination
Settlement Share Amount”) equal to the sum,
for each Valid Day during the Settlement
Averaging Period for such Option, of (i) the
Daily Option Value for such Valid Day,
divided by (ii) the Relevant Price on such
Valid Day, divided by (iii) the number of

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	 	      Valid Days in the Settlement Averaging
Period, multiplied by (iv) (A) 100% minus
(B) the Cash Percentage.

	 
	 	 
	 

	 	Dealer will deliver cash in lieu of any
fractional Shares to be delivered with respect to
any Combination Settlement Share Amount valued at
the Relevant Price for the last Valid Day of the
Settlement Averaging Period.
	 
	 	 
	Cash Settlement:

	 	If Cash Settlement is applicable to any Option exercised or
deemed exercised hereunder, in lieu of Section 8.1 of the Equity Definitions,
Dealer will pay to Counterparty, on the relevant Settlement Date for each such
Option, an amount of cash equal to the sum, for each Valid Day during the
Settlement Averaging Period for such Option, of (i) the Daily Option Value for such
Valid Day, divided by (ii) the number of Valid Days in the Settlement Averaging
Period.
	 
	 	 
	Daily Option Value:

	 	For any Valid Day, an amount equal to (i) the Option
Entitlement on such Valid Day, multiplied by (ii) the Relevant Price on such Valid
Day less the Strike Price on such Valid Day; provided that if the calculation
contained in clause (ii) above results in a negative number, the Daily Option Value
for such Valid Day shall be deemed to be zero. In no event will the Daily Option
Value be less than zero.
	 
	 	 
	Valid Day:

	 	A day on which (i) there is no Market Disruption Event and (ii)
trading in the Shares generally occurs on the Exchange or, if the Shares are not
then listed on the Exchange, on the principal other U.S. national or regional
securities exchange on which the Shares are then listed or, if the Shares are not
then listed on a U.S. national or regional securities exchange, on the principal
other market on which the Shares are then listed or admitted for trading. If the
Shares are not so listed or admitted for trading, “Valid Day” means a Business Day.
	 
	 	 
	Scheduled Valid Day:

	 	A day that is scheduled to be a Valid Day on the principal U.S.
national or regional securities exchange or market on which the Shares are listed
or admitted for trading. If the Shares are not so listed or admitted for trading,
“Scheduled Valid Day” means a Business Day.
	 
	 	 
	Business Day:

	 	Any day other than a Saturday, a Sunday or a day on which the Federal
Reserve Bank of New York is authorized or required by law or executive order to
close or be closed.
	 
	 	 
	Relevant Price:

	 	For each of the 50 consecutive Valid Days during the applicable
Settlement Averaging Period, the per Share volume-weighted average price as
displayed under the heading “Bloomberg VWAP” on Bloomberg page “IART <equity>
AQR” (or its equivalent successor if such page is not available) in respect of the
period from the scheduled open of trading until the scheduled clos of trading of
the primary trading session on such Valid Day

7

 

	 	 	 

	 

	 	(or if such volume-weighted average price is
unavailable, the market value of one Share on
such Valid Day determined, using a
volume-weighted average method, by the
Calculation Agent). The Relevant Price shall be
determined without regard to after hours trading
or any other trading outside of the regular
trading session trading hours.
	 
	 	 
	Settlement Averaging Period:

	 	For any Option and regardless of the Settlement Method
applicable to such Option:
	 
	 	 
	 

	 	(i)    if the relevant Conversion Date occurs
prior to the Free Convertibility Date, the
50 consecutive Valid-Day period beginning
on, and including, the second Valid Day
after such Conversion Date; and

	 
	 	 
	 

	 	(ii)   if the relevant Conversion Date occurs on
or following the Free Convertibility Date,
the 50 consecutive Valid Days beginning on,
and including, the 52nd Scheduled Valid Day
immediately preceding the Expiration Date.

	 
	 	 
	Settlement Date:

	 	For any Option, the date Shares and/or cash are delivered with respect
to the Convertible Note related to such Option pursuant to Section 14.02(a) of the
Indenture; provided that the Settlement Date will not be prior to the later of (i)
the third Business Day immediately following the final Valid Day of the Settlement
Averaging Period for such Option and (ii) the Exchange Business Day immediately
following the date Counterparty provides written notice to Dealer of such date of
delivery under the Indenture prior to 4:00 PM, New York City time.
	 
	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Other Applicable Provisions:

	 	The provisions of Sections 9.1(c), 9.8, 9.9 and
9.11 (as modified below) of the Equity Definitions will be applicable as if
Physical Settlement were applicable.
	 
	 	 
	Representation and Agreement:

	 	Notwithstanding anything to the contrary in Equity
Definitions (including, but not limited to, Section 9.11 thereof), the parties
acknowledge that (i) any Shares delivered to Counterparty shall be, upon delivery,
subject to restrictions and limitations arising from Counterparty’s status as
issuer of the Shares under applicable securities laws, (ii) Dealer may deliver any
Shares required to be delivered hereunder in certificated form in lieu of delivery
through the Clearance System and (iii) any Shares delivered to Counterparty may be
“restricted securities” (as defined in Rule 144 under the Securities Act of 1933,
as amended (the “Securities Act”)).

3.    Additional Terms applicable to the Transaction.

	 	 	 

	Adjustments applicable to the Transaction:
	 	 
	 
	 	 
	Potential Adjustment Events:

	 	Notwithstanding Section 11.2(e) of the Equity Definitions,
a “Potential Adjustment Event” means an

8

 

	 	 	 

	 

	 	occurrence of any event or condition, as set
forth in any Dilution Adjustment Provision, that
would result in an adjustment to the Conversion
Rate (as defined in the Indenture) of the
Convertible Notes.
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment, which means that, notwithstanding
Section 11.2(c) of the Equity Definitions, upon any Potential Adjustment Event, the
Calculation Agent shall make a corresponding adjustment to any one or more of the
Strike Price, Number of Options, Option Entitlement and any other variable relevant
to the exercise, settlement or payment for the Transaction; provided that,
notwithstanding the foregoing, if any Potential Adjustment Event occurs during the
Settlement Averaging Period but no adjustment was made to any Convertible Note
under the Indenture because the relevant Holder (as such term is defined in the
Indenture) was deemed to be a record owner of the underlying Shares on the related
Conversion Date, then the Calculation Agent shall make an adjustment, as determined
by it, to the terms hereof in order to account for such Potential Adjustment Event.
	 
	 	 
	Dilution Adjustment Provisions:

	 	Section 14.04(a), (b), (c), (d) and (e) and Section
14.05 of the Indenture.
	 
	 	 
	Extraordinary Events applicable to the Transaction:
	 	 
	 
	 	 
	Merger Events:

	 	Applicable; provided that notwithstanding Section 12.1(b) of the Equity
Definitions, a “Merger Event” means the occurrence of any event or condition set
forth in the definition of “Merger Event” in Section 14.07(a) of the Indenture.
	 
	 	 
	Tender Offers:

	 	Applicable; provided that notwithstanding Section 12.1(d) of the Equity
Definitions, a “Tender Offer” means the occurrence of any event or condition set
forth in Section 14.04(e) of the Indenture.
	 
	 	 
	Consequence of Merger Events / Tender
Offers:

	 	Notwithstanding Section 12.2 and Section 12.3 of the Equity Definitions,
upon the occurrence of a Merger Event or a Tender Offer, the Calculation Agent
shall make a corresponding adjustment in respect of any adjustment under the
Indenture to any one or more of the nature of the Shares (in the case of a Merger
Event), Strike Price, Number of Options, Option Entitlement and any other variable
relevant to the exercise, settlement or payment for the Transaction; provided,
however, that such adjustment shall be made without regard to any adjustment to the
Conversion Rate pursuant to any Excluded Provision; provided further that if, with
respect to a Merger Event or a Tender Offer, (i) the consideration for the Shares
includes (or, at the option of a holder of Shares, may include) shares of an entity
or person that is not a corporation or is not organized under the laws of the
United States, any State thereof or the District of Columbia or (ii) the
Counterparty to the Transaction

9

 

	 	 	 

	 

	 	following such Merger Event or Tender Offer, will
not be a corporation or will not be the Issuer
following such Merger Event or Tender Offer, then
Cancellation and Payment (Calculation Agent
Determination) shall apply.
	 
	 	 
	Nationalization, Insolvency or Delisting:

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

	 	Applicable; provided that (i) Section 12.9(a)(ii) of the Equity
Definitions is hereby amended by replacing the parenthetical beginning after
the word “regulation” in the second line thereof with the words “(including,
for the avoidance of doubt and without limitation, (x) any tax law or (y)
adoption or promulgation of new regulations authorized or mandated by existing
statute)” and (ii) Section 12.9(a)(ii)(X) of the Equity Definitions is hereby
amended by replacing the word “Shares” with the phrase “Hedge Positions.”
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Hedging Disruption:

	 	Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	Hedging Party:

	 	For all applicable Additional Disruption Events, Dealer.
	 
	 	 
	Determining Party:

	 	For all applicable Extraordinary Events, Dealer.
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgements
Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	4.    Calculation Agent.

	 	Dealer, whose judgments, determinations and calculations shall be made in good faith
and in a commercially reasonable manner. Following any determination or calculation
by the Calculation Agent hereunder, upon a written request by Counterparty, the
Calculation Agent will provide to Counterparty by e-mail to the e-mail address
provided by Counterparty in such written request a report (in a commonly used file
format for the storage and manipulation of financial data) displaying in reasonable

10

 

	 	 	 

	 

	 	detail the basis for such calculation, it being
understood that the Calculation Agent shall not be
obligated to disclose any proprietary models used
by it for such calculation.

	5.	 	Account Details.

	 	(a)	 	Account for payments to Counterparty:
	 
	 	 	 	Bank Name: Wells Fargo Bank

ABA #: 121000248

Beneficiary: First Clearing, LLC

Account #: 4122023377

FFC Account Name: Integra LifeSciences Holdings Corp

FFC Account Number: 8595-0713
	 
	 	 	 	Account for delivery of Shares to Counterparty:
	 
	 	 	 	American Stock Transfer & Trust Co LLC

Transfer Agent # 2941

Account # 10249
	 
	 	(b)	 	Account for payments to Dealer:
	 
	 	 	 	Bank: Wells Fargo Bank, N.A.

ABA#: 121-000-248

Internal acct no.: 01020300064228

A/C name: WFB Equity Derivatives
	 
	 	 	 	Account for delivery of Shares from Dealer:
	 
	 	 	 	DTC Number: 2072

Agent ID: 52196

Institution ID: 52196

	6.	 	Offices.

	 	(a)	 	The Office of Counterparty for the Transaction is: Inapplicable, Counterparty
is not a Multibranch Party.
	 
	 	(b)	 	The Office of Dealer for the Transaction is:
	 
	 	 	 	Wells Fargo Bank, National Association

375 Park Avenue

New York, NY 10152

	7.	 	Notices.

	 	(a)	 	Address for notices or communications to Counterparty:
	 
	 	 	 	Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention:           Treasurer

Telephone No.:   (609) 275-0500

Facsimile No.:     (609) 750-4264

11

 

	 
	 	(b)	 	Address for notices or communications to Dealer:

Wells Fargo Securities, LLC

Structured Derivatives Documentation Unit

375 Park Avenue

New York, NY 10152

Telephone: 212-214-6101

Facsimile: 212-214-5913

Email: sds@wachovia.com

With a copy to:

Mark Kohn or Head Trader

Telephone: 212-214-6089

Facsimile: 212-214-8914

	8.	 	Representations and Warranties of Counterparty.

	 	 	Each of the representations and warranties of Counterparty set forth in Section 3 of the
Purchase Agreement (the “Purchase Agreement”), dated as of June 9, 2011, between
Counterparty and the representatives of the Initial Purchasers party thereto (the
“Representatives”), is true and correct and is hereby deemed to be repeated to Dealer as if
set forth herein; provided that no such representation or warranty, other than the
representations and warranties set forth in Sections 3(a), (b), (d) and (e) of the Purchase
Agreement, may be the basis of an Event of Default under Section 5(a)(iv) of the Agreement.
Counterparty hereby further represents and warrants to Dealer on the date hereof and on and
as of the Premium Payment Date that:

	 	(a)	 	Counterparty has all necessary corporate power and authority to execute,
deliver and perform its obligations in respect of the Transaction; such execution,
delivery and performance have been duly authorized by all necessary corporate action on
Counterparty’s part; and this Confirmation has been duly and validly executed and
delivered by Counterparty and constitutes its valid and binding obligation, enforceable
against Counterparty in accordance with its terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies generally, and subject, as to enforceability,
to general principles of equity, including principles of commercial reasonableness,
good faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity) and except that rights to indemnification and
contribution hereunder may be limited by federal or state securities laws or public
policy relating thereto.
	 
	 	(b)	 	Neither the execution and delivery of this Confirmation nor the incurrence or
performance of obligations of Counterparty hereunder will conflict with or result in a
breach of the certificate of incorporation or by-laws (or any equivalent documents) of
Counterparty, or any applicable law or regulation, or any order, writ, injunction or
decree of any court or governmental authority or agency, or any agreement or instrument
to which Counterparty or any of its subsidiaries is a party or by which Counterparty or
any of its subsidiaries is bound or to which Counterparty or any of its subsidiaries is
subject, or constitute a default under, or result in the creation of any lien under,
any such agreement or instrument.
	 
	 	(c)	 	No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required in connection with the execution,
delivery or performance by Counterparty of this Confirmation, except such as have been
obtained or made and such as may be required under the Securities Act or state
securities laws.
	 
	 	(d)	 	Counterparty is not and will not be required to register as an “investment
company” as such term is defined in the Investment Company Act of 1940, as amended.
	 
	 	(e)	 	Counterparty is an “eligible contract participant” (as such term is defined in
Section 1a(12) of the Commodity Exchange Act, as amended, other than a person that is
an eligible contract participant under Section 1a(12)(C) of the Commodity Exchange
Act).

12

 

	 	(f)	 	Each of Counterparty and its officers and directors is not, on the date hereof,
in possession of any material non-public information with respect to Counterparty or
the Shares.

	9.	 	Other Provisions.

	 	(a)	 	Opinions. Counterparty shall deliver to Dealer an opinion of counsel,
dated as of the Trade Date, with respect to the matters set forth in Sections 8(a)
through (c) of this Confirmation. Delivery of such opinion to Dealer shall be a
condition precedent for the purpose of Section 2(a)(iii) of the Agreement with respect
to each obligation of Dealer under Section 2(a)(i) of the Agreement.
	 
	 	(b)	 	Repurchase Notices. Counterparty shall, on any day on which
Counterparty effects any repurchase of Shares or consummates or otherwise executes or
engages in any transaction or event (a “Conversion Rate Adjustment Event”) that would
lead to an increase in the Conversion Rate (as such term is defined in the Indenture),
promptly give Dealer a written notice of such repurchase or Conversion Rate Adjustment
Event (a “Repurchase Notice”) on such day if following such repurchase or Conversion
Rate Adjustment Event, the number of outstanding Shares as determined on such day is
(i) less than 24,264,547 (in the case of the first such notice) or (ii) thereafter more
than 3,192,382 less than the number of Shares included in the immediately preceding
Repurchase Notice. Counterparty agrees to indemnify and hold harmless Dealer and its
affiliates and their respective officers, directors, employees, affiliates, advisors,
agents and controlling persons (each, an “Indemnified Person”) from and against any and
all losses (including losses relating to Dealer’s hedging activities as a consequence
of becoming, or of the risk of becoming, a Section 16 “insider”, including without
limitation, any forbearance from hedging activities or cessation of hedging activities
and any losses in connection therewith with respect to the Transaction), claims,
damages, judgments, liabilities and expenses (including reasonable attorney’s fees),
joint or several, that an Indemnified Person may become subject to, as a result of
Counterparty’s failure to provide Dealer with a Repurchase Notice on the day and in the
manner specified in this paragraph, and to reimburse, within 30 days, upon written
request, each of such Indemnified Persons for any reasonable legal or other expenses
incurred in connection with investigating, preparing for, providing testimony or other
evidence in connection with or defending any of the foregoing. If any suit, action,
proceeding (including any governmental or regulatory investigation), claim or demand
shall be brought or asserted against the Indemnified Person as a result of
Counterparty’s failure to provide Dealer with a Repurchase Notice in accordance with
this paragraph, such Indemnified Person shall promptly notify Counterparty in writing,
and Counterparty, upon request of the Indemnified Person, shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified Person
and any others Counterparty may designate in such proceeding and shall pay the fees and
expenses of such counsel related to such proceeding. Counterparty shall not be liable
for any settlement of any proceeding contemplated by this paragraph that is effected
without its written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, Counterparty agrees to indemnify any Indemnified Person
from and against any loss or liability by reason of such settlement or judgment.
Counterparty shall not, without the prior written consent of the Indemnified Person,
effect any settlement of any pending or threatened proceeding contemplated by this
paragraph that is in respect of which any Indemnified Person is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Person, unless
such settlement includes an unconditional release of such Indemnified Person from all
liability on claims that are the subject matter of such proceeding on terms reasonably
satisfactory to such Indemnified Person. If the indemnification provided for in this
paragraph is unavailable to an Indemnified Person or insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then Counterparty
hereunder, in lieu of indemnifying such Indemnified Person thereunder, shall contribute
to the amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities. The remedies provided for in this paragraph (b) are
not exclusive and shall not limit any rights or remedies that may otherwise be
available to any Indemnified Person at law or in equity. The indemnity and
contribution agreements contained in this paragraph shall remain operative and in full
force and effect regardless of the termination of the Transaction.

13

 

	 	(c)	 	Regulation M. Counterparty is not on the Trade Date engaged in a
distribution, as such term is used in Regulation M under the Exchange Act, of any
securities of Counterparty, other than a distribution meeting the requirements of the
exception set forth in Rules 101(b)(10) and 102(b)(7)
of Regulation M. Counterparty shall not, until the second Scheduled Trading Day
immediately following the Effective Date, engage in any such distribution.
	 
	 	(d)	 	No Manipulation. Counterparty is not entering into the Transaction to
create actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares)
or otherwise in violation of the Exchange Act.
	 
	 	(e)	 	Transfer or Assignment.

	 	(i)	 	Counterparty shall have the right to transfer or assign its
rights and obligations hereunder with respect to all, but not less than all, of
the Options hereunder (such Options, the “Transfer Options”); provided that
such transfer or assignment shall be subject to reasonable conditions that
Dealer may impose, including, but not limited to, the following conditions:

	 	(A)	 	With respect to any Transfer Options,
Counterparty shall not be released from its notice and indemnification
obligations pursuant to Section 9(b) or any obligations under Section
9(m) or 9(r) of this Confirmation;
	 
	 	(B)	 	Any Transfer Options shall only be transferred
or assigned to a third party that is a United States person (as defined
in the Internal Revenue Code of 1986, as amended);
	 
	 	(C)	 	Such transfer or assignment shall be effected
on terms, including any reasonable undertakings by such third party
(including, but not limited to, an undertaking with respect to
compliance with applicable securities laws in a manner that, in the
reasonable judgment of Dealer, will not expose Dealer to material risks
under applicable securities laws) and execution of any documentation
and delivery of legal opinions with respect to securities laws and
other matters by such third party and Counterparty, as are requested
and reasonably satisfactory to Dealer;
	 
	 	(D)	 	Dealer will not, as a result of such transfer
and assignment, be required to pay the transferee on any payment date
an amount under Section 2(d)(i)(4) of the Agreement greater than an
amount that Dealer would have been required to pay to Counterparty in
the absence of such transfer and assignment;
	 
	 	(E)	 	An Event of Default, Potential Event of Default
or Termination Event will not occur as a result of such transfer and
assignment;
	 
	 	(F)	 	Without limiting the generality of clause (B),
Counterparty shall cause the transferee to make such Payee Tax
Representations and to provide such tax documentation as may be
reasonably requested by Dealer to permit Dealer to determine that
results described in clauses (D) and (E) will not occur upon or after
such transfer and assignment; and
	 
	 	(G)	 	Counterparty shall be responsible for all
reasonable costs and expenses, including reasonable counsel fees,
incurred by Dealer in connection with such transfer or assignment.

	 	(ii)	 	Dealer may not, without Counterparty’s consent, transfer or
assign all or any part of its rights or obligations under the Transaction
except to any affiliate of Dealer (A) that has a rating for its long term,
unsecured and unsubordinated indebtedness that is equal to or better than
Dealer’s credit rating at the time of such transfer or assignment, or (B) whose

14

 

	 	 	 	obligations hereunder will be guaranteed, pursuant to the terms of a customary
guarantee in a form used by Dealer generally for similar transactions, by
Dealer or the Dealer Parent. If at any time at which (A) the Section 16
Percentage exceeds 7.5%, (B) the
Option Equity Percentage exceeds 14.5%, or (C) the Share Amount exceeds the
Applicable Share Limit (if any applies) (any such condition described in
clauses (A), (B) or (C), an “Excess Ownership Position”), Dealer is unable
after using its commercially reasonable efforts to effect a transfer or
assignment of Options to a third party on pricing terms reasonably
acceptable to Dealer and within a time period reasonably acceptable to
Dealer such that no Excess Ownership Position exists, then Dealer may
designate any Exchange Business Day as an Early Termination Date with
respect to a portion of the Transaction (the “Terminated Portion”), such
that following such partial termination no Excess Ownership Position exists.
In the event that Dealer so designates an Early Termination Date with
respect to a portion of the Transaction, a payment shall be made pursuant to
Section 6 of the Agreement as if (1) an Early Termination Date had been
designated in respect of a Transaction having terms identical to the
Transaction and a Number of Options equal to the number of Options
underlying the Terminated Portion, (2) Counterparty were the sole Affected
Party with respect to such partial termination and (3) the Terminated
Portion were the sole Affected Transaction (and, for the avoidance of doubt,
the provisions of Section 9(k) shall apply to any amount that is payable by
Dealer to Counterparty pursuant to this sentence as if Counterparty was not
the Affected Party). The “Section 16 Percentage” as of any day is the
fraction, expressed as a percentage, (A) the numerator of which is the
number of Shares that Dealer and each person subject to aggregation of
Shares with Dealer under Section 13 or Section 16 of the Exchange Act and
rules promulgated thereunder directly or indirectly beneficially own (as
defined under Section 13 or Section 16 of the Exchange Act and rules
promulgated thereunder) and (B) the denominator of which is the number of
Shares outstanding. The “Option Equity Percentage” as of any day is the
fraction, expressed as a percentage, (A) the numerator of which is the sum
of (1) the product of the Number of Options and the Option Entitlement and
(2) the aggregate number of Shares underlying any other call option
transaction sold by Dealer to Counterparty, and (B) the denominator of which
is the number of Shares outstanding. The “Share Amount” as of any day is
the number of Shares that Dealer and any person whose ownership position
would be aggregated with that of Dealer (Dealer or any such person, a
“Dealer Person”) under any law, rule, regulation, regulatory order or
organizational documents or contracts of Counterparty that are, in each
case, applicable to ownership of Shares (“Applicable Restrictions”), owns,
beneficially owns, constructively owns, controls, holds the power to vote or
otherwise meets a relevant definition of ownership under any Applicable
Restriction, as determined by Dealer in its reasonable discretion. The
“Applicable Share Limit” means a number of Shares equal to (A) the minimum
number of Shares that could give rise to reporting or registration
obligations (except for any filings of Schedule 13D or Schedule 13G under
the Exchange Act or any other filing obligations applicable as of the date
hereof) or other requirements (including obtaining prior approval from any
person or entity) of a Dealer Person, or could result in an adverse effect
on a Dealer Person, under any Applicable Restriction, as determined by
Dealer in its reasonable discretion, minus (B) 1% of the number of Shares
outstanding.
	 
	 	(iii)	 	Notwithstanding any other provision in this Confirmation to
the contrary requiring or allowing Dealer to purchase, sell, receive or deliver
any Shares or other securities, or make or receive any payment in cash, to or
from Counterparty, Dealer may designate any of its affiliates to purchase,
sell, receive or deliver such Shares or other securities, or to make or receive
such payment in cash, and otherwise to perform Dealer’s obligations in respect
of the Transaction and any such designee may assume such obligations. Dealer
shall be discharged of its obligations to Counterparty to the extent of any
such performance.

	 	(f)	 	Staggered Settlement. If upon advice of counsel with respect to
applicable legal and regulatory requirements, including any requirements relating to
Dealer’s hedging activities hereunder, Dealer

15

 

	 	 	 	reasonably determines that it would not
be advisable to deliver, or to acquire Shares to deliver, any or all of the Shares to
be delivered by Dealer on the Settlement Date for the Transaction, Dealer may, by
notice to Counterparty on or prior to any Settlement Date (a “Nominal Settlement
Date”), elect to deliver the Shares on two or more dates (each, a “Staggered
Settlement Date”) as follows:

	 	(i)	 	in such notice, Dealer will specify to Counterparty the related
Staggered Settlement Dates (each of which will be on or prior to such Nominal
Settlement Date) and the number of Shares that it will deliver on each
Staggered Settlement Date;
	 
	 	(ii)	 	the aggregate number of Shares that Dealer will deliver to
Counterparty hereunder on all such Staggered Settlement Dates will equal the
number of Shares that Dealer would otherwise be required to deliver on such
Nominal Settlement Date; and
	 
	 	(iii)	 	if the Net Share Settlement terms set forth above were to
apply on the Nominal Settlement Date, then the Net Share Settlement terms will
apply on each Staggered Settlement Date, except that the Net Shares will be
allocated among such Staggered Settlement Dates as specified by Dealer in the
notice referred to in clause (i) above.

	 	(g)	 	Terms Relating to Wells Fargo Securities, LLC (the “Agent”).

	 	(i)	 	The Agent is registered as a broker-dealer with the U.S.
Securities and Exchange Commission and the Financial Industry Regulatory
Authority, is acting hereunder for and on behalf of Dealer solely in its
capacity as agent for Dealer pursuant to instructions from Dealer, and is not
and will not be acting as the Counterparty’s agent, broker, advisor or
fiduciary in any respect under or in connection with the Transaction.
	 
	 	(ii)	 	In addition to acting as Dealer’s agent in executing the
Transaction, the Agent is authorized from time to time to give written payment
and/or delivery instructions to Counterparty directing it to make its payments
and/or deliveries under the Transaction to an account of the Agent for
remittance to the Dealer (or its designee), and for that purpose any such
payment or delivery by Counterparty to the Agent shall be treated as a payment
or delivery to the Dealer.
	 
	 	(iii)	 	Except as otherwise provided herein, any and all notices,
demands, or communications of any kind transmitted in writing by either Dealer
or Counterparty under or in connection with the Transaction will be transmitted
exclusively by such party to the other party through the Agent at the following
address:

Wells Fargo Securities, LLC

201 South College Street, 6th Floor

Charlotte, NC 28288-0601

Facsimile No.: (704) 383-8425

Telephone No.: (704) 715-8086

Attention: Equity Derivatives

	 	(iv)	 	The Agent shall have no responsibility or liability to the
Dealer or Counterparty for or arising from (i) any failure by either Dealer or
Counterparty to perform any of their respective obligations under or in
connection with the Transaction, (ii) the collection or enforcement of any such
obligations, or (iii) the exercise of any of the rights and remedies of either
Dealer or Counterparty under or in connection with the Transaction. Each of
Dealer and Counterparty agrees to proceed solely against the other to collect
or enforce any such obligations, and the Agent shall have no liability in
respect of the Transaction except for its gross negligence or willful
misconduct in performing its duties as the agent of Dealer.

16

 

	 	(v)	 	Upon written request, the Agent will furnish to Dealer and
Counterparty the date and time of the execution of the Transaction and a
statement as to the source and amount of any remuneration received or to be
received by the Agent in connection with the Transaction.

	 	(h)	 	Additional Termination Events.

	 	(i)	 	Notwithstanding anything to the contrary in this Confirmation
if (i) an event of default with respect to Counterparty occurs under the terms
of the Convertible Notes as set forth in Section 6.01 of the Indenture or (ii)
Counterparty gives Dealer the notice required pursuant to the last sentence of
this paragraph, then such occurrence or the giving of such notice, as
applicable, shall constitute an Additional Termination Event applicable to the
Transaction and, with respect to such Additional Termination Event, (A)
Counterparty shall be deemed to be the sole Affected Party, (B) the Transaction
shall be the sole Affected Transaction and (C) Dealer shall be the party
entitled to designate an Early Termination Date pursuant to Section 6(b) of the
Agreement (which Early Termination Date shall correspond in the case of a
Repurchase Event (as defined below), if applicable, to a payment date under
Section 6(d)(ii) of the Agreement occurring within a commercially reasonable
period of time (as determined by Dealer in a commercially reasonable manner in
consultation with counsel with regard to legal, regulatory or commercial issues
arising in connection with any related hedging or hedge unwind activities)
after the date of payment with respect to the Convertible Notes, if applicable,
for such Repurchase Event) and determine the amount payable pursuant to Section
6(e) of the Agreement; provided that in the case of a Repurchase Event, the
Transaction shall be subject to termination only in respect of a number of
Options (the “Affected Number of Options”), equal to the lesser of (A) the
number of Convertible Notes that cease to be outstanding in connection with or
as a result of such Repurchase Event, as the case may be, minus the “Affected
Number of Options” (as defined in the Base Call Option Confirmation), if any,
that relate to such Repurchase Event, as the case may be (and, for the purposes
of determining whether any Options under this Confirmation or under the Base
Call Option Confirmation will be among the Affected Number of Options hereunder
or among the “Affected Number of Options” under, and as defined in, the Base
Call Option Confirmation, the Affected Number of Options shall be allocated
first to the Base Call Option Confirmation until all Options thereunder are
exercised or terminated), and (B) the number of Options then outstanding. For
the avoidance of doubt, in determining the amount payable in respect of such
Affected Transaction pursuant to Section 6 of the Agreement in connection with
a Repurchase Event, the Calculation Agent shall assume that the Convertible
Notes subject to such Repurchase Event shall not have been repurchased and
remain outstanding. Counterparty shall notify Dealer promptly following the
occurrence of any Repurchase Event; provided that Counterparty agrees to
initiate a Repurchase Event only if Counterparty represents to Dealer at the
time it takes action to so initiate such Repurchase Event that it is not in
possession of any material nonpublic information with respect to Counterparty
or the Shares.
	 
	 	 	 	“Repurchase Event” means that (i) any Convertible Notes are repurchased
(whether in connection with or as a result of a fundamental change,
howsoever defined, a tender offer or similar transaction or for any other
reason) by Counterparty, (ii) any Convertible Notes are delivered to
Counterparty in exchange for delivery of any property or assets of
Counterparty (howsoever described), (iii) any principal of any of the
Convertible Notes is repaid prior to the final maturity date of the
Convertible Notes (whether following acceleration of the Convertible Notes
or otherwise), or (iv) any Convertible Notes are exchanged by or for the
benefit of the holders thereof for any other securities of Counterparty (or
any other property, or any combination thereof) pursuant to any exchange
offer or similar transaction. For the avoidance of doubt, any conversion of
Convertible Notes pursuant to the terms of the Indenture shall not
constitute a Repurchase Event.
	 
	 	(ii)	 	Notwithstanding anything to the contrary in this Confirmation,
the receipt by Dealer from Counterparty, within the applicable time period set
forth under “Notice of Exercise”

17

 

	 	 	 	above, of any Notice of Exercise in respect of
Options that relate to Convertible Notes as to which additional Shares would be
added to the Conversion Rate pursuant to Section 14.03 of the Indenture in
connection with a “Make-Whole Fundamental Change” (as defined in the Indenture)
shall constitute an Additional Termination Event as provided in this Section
9(h)(ii). Upon receipt of any such Notice of Exercise, Dealer shall designate
an Exchange Business Day following such Additional Termination Event (which
Exchange Business Day shall in no event be earlier than the related
settlement date for such Convertible Notes) as an Early Termination Date
with respect to the portion of this Transaction corresponding to a number of
Options (the “Make-Whole Conversion Options”) equal to the lesser of (A) the
number of such Options specified in such Notice of Exercise minus the number
of “Make-Whole Conversion Options” (as defined in the Base Call Option
Confirmation), if any, that relate to such Convertible Notes and (B) the
Number of Options as of the date Dealer designates such Early Termination
Date and, as of such date, the Number of Options shall be reduced by the
number of Make-Whole Conversion Options. Any payment hereunder with respect
to such termination shall be calculated pursuant to Section 6 of the
Agreement as if (1) an Early Termination Date had been designated in respect
of a Transaction having terms identical to this Transaction and a Number of
Options equal to the number of Make-Whole Conversion Options, (2)
Counterparty were the sole Affected Party with respect to such Additional
Termination Event and (3) the terminated portion of the Transaction were the
sole Affected Transaction (and, for the avoidance of doubt, in determining
the amount payable pursuant to Section 6 of the Agreement, the Calculation
Agent shall not take into account any adjustments to the Option Entitlement
that result from corresponding adjustments to the Conversion Rate pursuant
to Section 14.03 of the Indenture); provided that the amount of cash
deliverable in respect of such early termination by Dealer to Counterparty
shall not be greater than the product of (x) the Applicable Percentage and
(y) the excess of (I) (1) the number of Make-Whole Conversion Options
multiplied by (2) the Conversion Rate (after taking into account any
applicable adjustments to the Conversion Rate pursuant to Section 14.03 of
the Indenture) multiplied by (3) a price per Share determined by the
Calculation Agent over (II) the aggregate principal amount of such
Convertible Notes, as determined by the Calculation Agent in a commercially
reasonable manner.

	 	(i)	 	Amendments to Equity Definitions.

	 	(i)	 	Section 12.6(a)(ii) of the Equity Definitions is hereby amended
by (1) deleting from the fourth line thereof the word “or” after the word
“official” and inserting a comma therefor, and (2) deleting the semi-colon at
the end of subsection (B) thereof and inserting the following words therefor
“or (C) at Dealer’s option, the occurrence of any of the events specified in
Section 5(a)(vii)(1) through (9) of the ISDA Master Agreement with respect to
that Issuer.”
	 
	 	(ii)	 	Section 12.9(b)(i) of the Equity Definitions is hereby amended
by (1) replacing “either party may elect” with “Dealer may elect” and (2)
replacing “notice to the other party” with “notice to Counterparty” in the
first sentence of such section.

	 	(j)	 	No Set-off. Each party waives any and all rights it may have to set
off obligations arising under the Agreement and the Transaction against other
obligations between the parties, whether arising under any other agreement, applicable
law or otherwise.
	 
	 	(k)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events. If in respect of the Transaction, an amount is payable by
Dealer to Counterparty (i) pursuant to Section 12.7 or Section 12.9 of the Equity
Definitions or (ii) pursuant to Section 6(d)(ii) of the Agreement (any such amount, a
“Payment Obligation”), Counterparty may request Dealer to satisfy the Payment
Obligation by the Share Termination Alternative (as defined below) (except that
Counterparty shall not have the right to make such an election in the event of (I) a
Nationalization, Insolvency, Merger Event or Tender Offer, in each case, in which the
consideration to be paid to holders of Shares consists solely of cash, (II) a Merger
Event or Tender Offer that is within Counterparty’s control, or (III) an Event of
Default in which Counterparty is

18

 

	 	 	 	 the Defaulting Party or a Termination Event in which
Counterparty is the Affected Party, other than an Event of Default of the type
described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a
Termination Event of the type described in Section 5(b) of the Agreement in each case
that resulted from an event or events outside Counterparty’s control) and shall give
irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled
Trading Day,
no later than 12:00 p.m. (New York City time) on the Merger Date, the Tender Offer
Date, the Announcement Date (in the case of Nationalization, Insolvency or
Delisting), the Early Termination Date or date of cancellation, as applicable;
provided that if Counterparty does not validly request Dealer to satisfy the Payment
Obligation by the Share Termination Alternative, Dealer shall have the right, in its
sole discretion, to satisfy its Payment Obligation by the Share Termination
Alternative, notwithstanding Counterparty’s election to the contrary.

	 	 	 

	Share
Termination
Alternative:

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

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

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

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

	 	Applicable
	 
	 	 
	Other
applicable
provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections 9.8, 9.9 and 9.11 (as modified

19

 

	 	 	 

	 

	 	above) of
the Equity Definitions and the provisions set forth opposite the caption
“Representation and Agreement” in Section 2 will be applicable as if Physical
Settlement were applicable.

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

20

 

	 	(q)	 	Securities Contract; Swap Agreement. The parties hereto intend for (i)
the Transaction to be a “securities contract” and a “swap agreement” as defined in the
Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the
parties hereto to be entitled to the protections afforded by, among other Sections,
Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code,
(ii) a party’s right to liquidate the Transaction and to exercise
any other remedies upon the occurrence of any Event of Default under the Agreement
with respect to the other party to constitute a “contractual right” as described in
the Bankruptcy Code, and (iii) each payment and delivery of cash, securities or
other property hereunder to constitute a “margin payment” or “settlement payment”
and a “transfer” as defined in the Bankruptcy Code.
	 
	 	(r)	 	Notice of Certain Other Events. Counterparty covenants and agrees that:

	 	(i)	 	promptly following the public announcement of the results of
any election by the holders of Shares with respect to the consideration due
upon consummation of any consolidation, merger and binding share exchange to
which Counterparty is a party, or any sale of all or substantially all of
Counterparty’s assets, in each case pursuant to which the Shares will be
converted into cash, securities or other property, Counterparty shall give
Dealer written notice of the types and amounts of consideration that holders of
Shares have elected to receive upon consummation of such transaction or event
(the date of such notification, the “Consideration Notification Date”);
provided that in no event shall the Consideration Notification Date be later
than the date on which such transaction or event is consummated; and
	 
	 	(ii)	 	promptly following any adjustment to the Convertible Notes in
connection with any Potential Adjustment Event, Merger Event or Tender Offer,
Counterparty shall give Dealer written notice of the details of such
adjustment.

	 	(s)	 	Wall Street Transparency and Accountability Act. In connection with
Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”),
the parties hereby agree that neither the enactment of WSTAA or any regulation under
the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, shall limit
or otherwise impair either party’s otherwise applicable rights to terminate,
renegotiate, modify, amend or supplement this Confirmation or the Agreement, as
applicable, arising from a termination event, force majeure, illegality, increased
costs, regulatory change or similar event under this Confirmation, the Equity
Definitions incorporated herein, or the Agreement (including, but not limited to,
rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, an
Excess Ownership Position, or Illegality (as defined in the Agreement)).
	 
	 	(t)	 	Early Unwind. In the event the sale of the “Option Securities” (as
defined in the Purchase Agreement) is not consummated with the Representatives for any
reason, or Counterparty fails to deliver to Dealer opinions of counsel as required
pursuant to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium
Payment Date, or such later date as agreed upon by the parties (the Premium Payment
Date or such later date, the “Early Unwind Date”), the Transaction shall automatically
terminate (the “Early Unwind”) on the Early Unwind Date and (i) the Transaction and all
of the respective rights and obligations of Dealer and Counterparty under the
Transaction shall be cancelled and terminated and (ii) each party shall be released and
discharged by the other party from and agrees not to make any claim against the other
party with respect to any obligations or liabilities of the other party arising out of
and to be performed in connection with the Transaction either prior to or after the
Early Unwind Date; provided that, other than in cases involving a breach of the
Purchase Agreement by Dealer, Counterparty shall purchase from Dealer on the Early
Unwind Date all Shares purchased by Dealer or one or more of its affiliates in
connection with the Transaction at the then prevailing market price. Each of Dealer
and Counterparty represents and acknowledges to the other that, subject to the proviso
included in this Section 9(r), upon an Early Unwind, all obligations with respect to
the Transaction shall be deemed fully and finally discharged.
	 
	 	(u)	 	Payment by Counterparty. In the event that (i) an Early Termination
Date occurs or is designated with respect to the Transaction as a result of a
Termination Event or an Event of Default (other

21

 

	 	 	 	than an Event of Default arising under
Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Counterparty owes to
Dealer an amount calculated under Section 6(e) of the Agreement, or (ii) Counterparty
owes to Dealer, pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an
amount calculated under Section 12.8 of the Equity Definitions, such amount shall be
deemed to be zero.

[Remainder of Page Intentionally Blank]

22

 

     Please confirm that the foregoing correctly sets forth the terms of our agreement by executing
this Confirmation and returning it to Wells Fargo Securities, LLC, 201 South College Street, 6th
Floor, Charlotte, NC 28288-0601, Facsimile No.: (704) 383-8425, Telephone No.: (704) 715-8086,
Attention: Equity Derivatives.

	 	 	 	 	 	 	 

	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	Wells Fargo Bank, National Association	 	 
	 	 	By Wells Fargo Securities, LLC,

acting solely in its capacity as its Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Cathleen Burke 	 	 
	 

	 	Name:
	 	 

Cathleen Burke 	 	 
	 

	 	Title:	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	Wells Fargo Securities, LLC

acting solely in its capacity as Agent of
Wells Fargo Bank, National Association	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Cathleen Burke 	 	 
	 

	 	Name:
	 	 

Cathleen Burke 	 	 
	 

	 	Title:	 	Managing Director	 	 

	 	 	 	 	 

	Accepted and confirmed
as of the Trade Date:	 	 
	 
	 	 	 	 
	Integra LifeSciences Holdings Corporation	 	 
	 
	 	 	 	 
	By:
	 	/s/ Nora Brennan	 	 
	 

	 	 	 	 
	Authorized Signatory	 	 
	Name:
	 	Nora Brennan	 	 

[WF Additional Bond Hedge Confirmation]exv10w13

Exhibit 10.13

EXECUTION VERSION

Deutsche Bank AG, London Branch

Winchester House

1 Great Winchester Street

London EC2N 2DB

Telephone: 44 20 7545 8000

c/o Deutsche Bank Securities Inc.

60 Wall Street

New York, NY 10005

Telephone: 1-212-250-2500

Internal Reference Nr.: 440024

                       June 14, 2011

			
	To:	 	Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention: Treasurer

Telephone No.: (609) 275-0500

Facsimile No.: (609) 750-4264

Re: Additional Warrants

     DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT
OF 1934. DEUTSCHE BANK SECURITIES INC. (“DBSI”) HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THIS
TRANSACTION AND HAS NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH
RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION. AS SUCH, ALL DELIVERY OF FUNDS,
ASSETS, NOTICES, DEMANDS AND COMMUNICATIONS OF ANY KIND RELATING TO THIS TRANSACTION BETWEEN
DEUTSCHE BANK AG AND COMPANY SHALL BE TRANSMITTED THROUGH DBSI. DEUTSCHE BANK AG ACTING THROUGH
ITS LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the Warrants issued by Integra LifeSciences Holdings Corporation (“Company”) to
Deutsche Bank AG, London Branch (“Dealer”) as of the Trade Date specified below (the
“Transaction”). This letter agreement constitutes a “Confirmation” as referred to in the ISDA
Master Agreement specified below. This Confirmation shall replace any previous agreements and
serve as the final documentation for the Transaction.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”), are incorporated into this Confirmation. In the event of any inconsistency between the
Equity Definitions and this Confirmation, this Confirmation shall govern. The Transaction shall be
deemed to be a Share Option Transaction within the meaning set forth in the Equity Definitions.

	 	 	 

	Chairman of the Supervisory Board: Clemens Börsig
Management Board: Josef Ackermann (Chairman), Hugo
Bänziger, Jürgen Fitschen, Anshuman Jain, Stefan
Krause, Hermann-Josef Lamberti, Rainer Neske

	 	Deutsche Bank AG is
authorized under German
Banking Law (competent
authority: BaFin — Federal
Financial Supervising
Authority) and regulated by
the Financial Services
Authority for the conduct of
UK business; a member of the
London Stock Exchange.
Deutsche Bank AG is a joint
stock corporation with
limited liability
incorporated in the Federal
Republic of Germany HRB No.
30 000 District Court of
Frankfurt am Main; Branch
Registration in England and
Wales BR000005; Registered
address: Winchester House, 1
Great Winchester Street,
London EC2N 2DB. Deutsche
Bank Group online:
	 

	 	http://www.deutsche-bank.com

 

 

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

1. This Confirmation evidences a complete and binding agreement between Dealer and Company as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master
Agreement (the “Agreement”) as if Dealer and Company had executed an agreement in such form (but
without any Schedule except for (i) the election of the laws of the State of New York as the
governing law (without reference to choice of law doctrine); (ii) the election that the “Cross
Default” provisions of Section 5(a)(vi) of the Agreement shall apply to both parties, provided that
(a) the phrase “or becoming capable at such time of being declared” shall be deleted from clause
(1) of such Section 5(a)(vi); (b) the following language shall be added to the end thereof:
“Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event
of Default if (i) the default was caused solely by error or omission of an administrative or
operational nature; (ii) funds were available to enable the party to make the payment when due; and
(iii) the payment is made within two Local Business Days of such party’s receipt of written notice
of its failure to pay.”; (c) “Specified Indebtedness” will have the meaning specified in Section
14 of the Agreement, except that such term shall not include obligations in respect of deposits
received in the ordinary course of a party’s banking business; and (d) “Threshold Amount” means
in relation to Dealer, three percent (3%) of shareholders’ equity of Deutsche Bank AG (the “Dealer
Parent”) and in relation to Company, USD 25 million.)) on the Trade Date. In the event of any
inconsistency between provisions of that Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby
agree that no Transaction other than the Transaction to which this Confirmation relates shall be
governed by the Agreement.

2. The Transaction is a Warrant Transaction, which shall be considered a Share Option Transaction
for purposes of the Equity Definitions. The terms of the particular Transaction to which this
Confirmation relates are as follows:

General Terms.

	 	 	 

	Trade Date:

	 	June 14, 2011
	 
	 	 
	Effective Date:

	 	The third Exchange Business Day immediately prior to the Premium Payment
Date
	 
	 	 
	Warrants:

	 	Equity call warrants, each giving the holder the right to purchase a number of
Shares equal to the Warrant Entitlement at a price per Share equal to the Strike
Price, subject to the terms set forth under the caption “Settlement Terms” below.
For the purposes of the Equity Definitions, each reference to a Warrant herein
shall be deemed to be a reference to a Call Option.
	 
	 	 
	Warrant Style:

	 	European
	 
	 	 
	Seller:

	 	Company
	 
	 	 
	Buyer:

	 	Dealer
	 
	 	 
	Shares:

	 	The common stock of Company, par value USD 0.01 per Share (Exchange symbol
“IART”)
	 
	 	 
	Number of Warrants:

	 	104,455. For the avoidance of doubt, the Number of Warrants shall
be reduced by any Warrants exercised or deemed exercised hereunder. In no event
will the Number of Warrants be less than zero.
	 
	 	 
	Warrant Entitlement:

	 	One Share per Warrant

2

 

	 	 	 

	Strike Price:

	 	USD 70.05.
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in the
Agreement, this Confirmation or the Equity
Definitions, in no event shall the Strike Price
be subject to adjustment to the extent that,
after giving effect to such adjustment, the
Strike Price would be less than USD 46.60, except for any adjustment
pursuant to the terms of this Confirmation and
the Equity Definitions in connection with stock
splits or similar changes to Company’s
capitalization.
	 
	 	 
	Premium:

	 	USD 742,200
	 
	 	 
	Premium Payment Date:

	 	June 15, 2011
	 
	 	 
	Exchange:

	 	The NASDAQ Global Select Market
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Procedures for Exercise.
	 	 
	 
	 	 
	Expiration Time:

	 	The Valuation Time
	 
	 	 
	Expiration Dates:

	 	Each Scheduled Trading Day during the period from, and including, the
First Expiration Date to, but excluding, the 100th Scheduled Trading Day following
the First Expiration Date shall be an “Expiration Date” for a number of Warrants
equal to the Daily Number of Warrants on such date; provided that, notwithstanding
anything to the contrary in the Equity Definitions, if any such date is a Disrupted
Day, the Calculation Agent shall (i) make adjustments, if applicable, to the Daily
Number of Warrants or shall reduce such Daily Number of Warrants to zero for which
such day shall be an Expiration Date and shall designate a Scheduled Trading Day or
a number of Scheduled Trading Days as the Expiration Date(s) for the remaining
Daily Number of Warrants or a portion thereof for the originally scheduled
Expiration Date and (ii) if the Daily Number of Warrants for such Disrupted Day is
not reduced to zero, determine the Settlement Price for such Disrupted Day based on
transactions in the Shares on such Disrupted Day taking into account the nature and
duration of such Market Disruption Event on such day; and provided
further that if such Expiration Date has not
occurred pursuant to this clause as of the eighth
Scheduled Trading Day following the last
scheduled Expiration Date under the Transaction,
the Calculation Agent shall have the right to
declare such Scheduled Trading Day to be the
final Expiration Date and the Calculation Agent
shall determine its good faith estimate of the
fair market value for the Shares as of the
Valuation Time on that eighth Scheduled Trading
Day or on any subsequent Scheduled Trading Day,
as the Calculation Agent shall determine using
commercially

3

 

	 	 	 

	 

	 	reasonable means. Any Scheduled Trading Day on which, as of the date hereof, the
Exchange is scheduled to close prior to its
normal close of trading shall be deemed not to be
a Scheduled Trading Day; if a closure of the
Exchange prior to its normal close of trading on
any Scheduled Trading Day is scheduled following
the date hereof, then such Scheduled Trading Day
shall be deemed to be a Disrupted Day in full.
	 
	 	 
	First Expiration Date:

	 	March 15, 2017 (or if such day is not a Scheduled
Trading Day, the next following Scheduled Trading Day), subject to Market
Disruption Event below.
	 
	 	 
	Daily Number of Warrants:

	 	For any Expiration Date, the Number of Warrants
that have not expired or been exercised as of such day, divided by the remaining
number of Expiration Dates (including such day), rounded down to the nearest whole
number, subject to adjustment pursuant to the provisos to “Expiration Dates”.
	 
	 	 
	Automatic Exercise:

	 	Applicable; and means that for each Expiration Date, a number of
Warrants equal to the Daily Number of Warrants (as adjusted pursuant to the terms
hereof) for such Expiration Date will be deemed to be automatically exercised at
the Expiration Time on such Expiration Date.
	 
	 	 
	Market Disruption Event:

	 	Section 6.3(a)(ii) of the Equity Definitions is hereby amended
by replacing clauses (ii) and (iii) in their entirety with “(ii) an Exchange
Disruption, (iii) an Early Closure or (iv) a Regulatory Disruption; in each case
that the Calculation Agent determines is material.”
	 
	 	 
	Regulatory Disruption:

	 	Any event that Dealer, in its discretion based on the advice of
counsel, determines makes it advisable with regard to any legal, regulatory or
self-regulatory requirements or related policies and procedures, for Dealer to
refrain from or decrease any market activity in connection with the Transaction.
Dealer shall notify Issuer as soon as reasonably practicable that a Regulatory
Disruption has occurred and the Expiration Dates affected by it.

Valuation Terms.

	 	 	 

	Valuation Time:

	 	Scheduled Closing Time; provided that if the principal trading session
is extended, the Calculation Agent shall determine the Valuation Time in its
reasonable discretion.
	 
	 	 
	Valuation Date:

	 	Each Exercise Date.

Settlement Terms.

	 	 	 

	Settlement Method Election:

	 	Applicable; provided that (i) references to “Physical
Settlement” in Section 7.1 of the Equity Definitions shall be replaced by
references to “Net Share Settlement”; (ii) the following is hereby inserted after
the words “apply to such Transaction” in the seventh line of Section 7.1 of the
Equity Definitions:

4

 

	 	 	 

	 

	 	“and, if Cash Settlement is elected, the
percentage of Company’s settlement obligations
with respect to such Transaction, which
percentage shall be greater than 0% and less than
or equal to 100%, that shall be settled in cash
(the “Cash Percentage”)”;
	 
	 	 
	 

	 	(iii) Company’s election of Cash Settlement shall
be deemed to be a representation and warranty by
Company that on the date of such election (A)
Company is not in possession of any material
non-public information regarding Company or the
Shares, (B) Company is electing Cash Settlement
in good faith and not as part of a plan or scheme
to evade compliance with the federal securities
laws, and (C) the assets of Company at their fair
valuation exceed the liabilities of Company
(including contingent liabilities), the capital
of Company is adequate to conduct the business of
Company, and Company has the ability to pay its
debts and obligations as such debts mature and
does not intend to, or does not believe that it
will, incur debt beyond its ability to pay as
such debts mature; (iv) the same election of
settlement method and Cash Percentage shall apply
to all Expiration Dates hereunder ;
(v) if Company elects Cash Settlement and
specifies a Cash Percentage that is less than or
equal to 0% or greater than 100%, then the notice
delivered by Company will be deemed to be
ineffective and the Default Settlement Method
will be deemed applicable to such Transaction and
(vi) Company may elect a Cash Percentage only if
no event of default has occurred and is
continuing under any indebtedness of Company or
its subsidiaries in an aggregate principal amount
of $100 million or more.
	 
	 	 
	Electing Party:

	 	Company
	 
	 	 
	Settlement Method Election Date:

	 	The third Scheduled Trading Day immediately preceding
the First Expiration Date.
	 
	 	 
	Default Settlement Method:

	 	Net Share Settlement
	 
	 	 
	Cash Percentage:

	 	0%; provided, however, that if Company (i) validly delivers
notice of Cash Settlement hereunder and (ii) in such notice validly elects a Cash
Percentage greater than 0% and less than or equal to 100%, the Cash Percentage
shall equal the percentage specified as such in such notice.
	 
	 	 
	Net Share Settlement:

	 	On the relevant Settlement Date, Company shall deliver to
Dealer a number of Shares equal to the Share Delivery Quantity for such Settlement
Date to the account specified hereto free of payment through the Clearance System
and pay to Dealer an amount of cash in USD the Fractional Share Amount for such
Settlement Date. For purposes of determining any dividends or distributions
payable in respect of such Shares, Dealer shall be treated as the holder of record
of such Shares at the time of delivery of such Shares or, if earlier, at 5:00 p.m.
(New York City time) on such Settlement Date.
	 
	 	 
	Share Delivery Quantity:

	 	For any Settlement Date, a number of Shares, as
calculated by the Calculation Agent, equal to the product of (i) one minus the Cash
Percentage, expressed as a

5

 

	 	 	 

	 

	 	fraction, and (ii) the Net Share Settlement Amount for
such Settlement Date divided by the Settlement Price on the Valuation Date for such
Settlement Date, rounded down to the nearest whole number (for any Settlement Date,
the fraction of a share eliminated by such rounding, the “Share Fraction” for such
Settlement Date).
	 
	 	 
	Fractional Share Amount:

	 	An amount of cash in USD equal to the product of (i) the Share
Fraction for such Settlement Date and (ii) the Settlement Price on the Valuation
Date for such Settlement Date.
	 
	 	 
	Net Share Settlement Amount:

	 	For any Settlement Date, an amount equal to
the product of (i) the Number of Warrants exercised or deemed exercised on the
relevant Exercise Date, (ii) the Strike Price Differential for the relevant
Valuation Date and (iii) the Warrant Entitlement.
	 
	 	 
	Cash Settlement:

	 	If Cash Settlement is applicable, then, on the relevant
Settlement Date, Company shall (i) pay to Dealer an amount of cash in USD equal to
sum of (A) the product of (x) the Cash Percentage and (y) the Net Share Settlement
Amount for such Settlement Date and (B) the Fractional Share Amount, if any, for
such Settlement Date and (ii) deliver to Dealer a number of Shares equal to the
Share Delivery Quantity for such Settlement Date to the account specified hereto
free of payment through the Clearance System. The provisions opposite Net Share
Settlement above shall apply to any Shares delivered pursuant to clause (ii) of the
immediately preceding sentence.
	 
	 	 
	Settlement Price:

	 	For any Valuation Date, the per Share volume-weighted average
price as displayed under the heading “Bloomberg VWAP” on Bloomberg page IART
<equity> AQR (or any successor thereto) in respect of the period from the
scheduled opening time of the Exchange to the Scheduled Closing Time on such
Valuation Date (or if such volume-weighted average price is unavailable, the market
value of one Share on such Valuation Date, as determined by the Calculation Agent).
Notwithstanding the foregoing, if (i) any Expiration Date is a Disrupted Day and
(ii) the Calculation Agent determines that such Expiration Date shall be an
Expiration Date for fewer than the Daily
Number of Warrants, as described above, then the
Settlement Price for the relevant Valuation Date
shall be the volume-weighted average price per
Share on such Valuation Date on the Exchange, as
determined by the Calculation Agent based on such
sources as it deems appropriate using a
volume-weighted methodology, for the portion of
such Valuation Date for which the Calculation
Agent determines there is no Market Disruption
Event.
	 
	 	 
	Settlement Dates:

	 	As determined pursuant to Section 9.4 of the Equity Definitions,
subject to Section 9(k)(i) hereof.
	 
	 	 
	Other Applicable Provisions:

	 	If Net Share Settlement is applicable, the
provisions of Sections 9.1(c), 9.8, 9.9, 9.11 (as modified below), 9.12 

6

 

	 	 	 	 	 

	 

	 	 	 	and 10.5 of the Equity Definitions will be applicable as if Physical
Settlement were applicable.
	 
	 	 	 	 
	 

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

	 	Adjustments applicable to
the Transaction:	 	 
	 
	 	 	 	 
	 

	 	     Method of Adjustment:
	 	Calculation Agent Adjustment. For the avoidance of
doubt, in making any adjustments under the Equity
Definitions, the Calculation Agent may make adjustments,
if any, to any one or more of the Strike Price, the
Number of Warrants, the Daily Number of Warrants and the
Warrant Entitlement. Notwithstanding the foregoing, any
cash dividends or distributions on the Shares, whether or
not extraordinary, shall be governed by Section 9(f) of
this Confirmation in lieu of Article 10 or Section
11.2(c) of the Equity Definitions.
	 
	 	 	 	 
	 

	 	Extraordinary Events
applicable to the
Transaction:	 	 
	 
	 	 	 	 
	 

	 	     New Shares:
	 	Section 12.1(i) of the Equity Definitions is hereby
amended (a) by deleting the text in clause (i) thereof in
its entirety (including the word “and” following clause
(i)) and replacing it with the phrase “publicly quoted,
traded or listed (or whose related depositary receipts
are publicly quoted, traded or listed) on any of the New
York Stock Exchange, The NASDAQ Global Select Market or
The NASDAQ Global Market (or their respective
successors)” and (b) by inserting immediately prior to
the period the phrase “and (iii) of an entity or person
organized under the laws of the United States, any State
thereof or the District of Columbia that also becomes
Company under the Transaction following such Merger Event
or Tender Offer”.
	 
	 	 	 	 
	 

	 	Consequence of Merger
Events:	 	 
	 
	 	 	 	 
	 

	 	     Merger Event:
	 	Applicable; provided that if an event occurs that
constitutes both a Merger Event under Section 12.1(b) of
the Equity Definitions and an Additional Termination
Event under Section 9(h)(ii)(B) of this Confirmation,
Dealer may elect, in its commercially reasonable
judgment, whether the provisions of Section 12.1(b) of
the Equity Definitions or Section 9(h)(ii)(B) will apply.
	 
	 	 	 	 
	 

	 	          Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	          Share-for-Other:
	 	Cancellation and Payment (Calculation Agent Determination)
	 
	 	 	 	 
	 

	 	          Share-for-Combined:
	 	Cancellation and Payment (Calculation Agent
Determination); provided that Dealer may elect, in its

7

 

	 	 	 	 	 

	 

	 	 	 	commercially reasonable judgment, Component Adjustment
(Calculation Agent Determination).
	 
	 	 	 	 
	 

	 	Consequence of
Tender Offers:	 	 
	 
	 	 	 	 
	 

	 	     Tender Offer:
	 	Applicable; provided that if an event occurs that
constitutes both a Tender Offer under Section 12.1(d) of
the Equity Definitions and Additional Termination Event
under Section 9(h)(ii)(A) of this Confirmation, Dealer
may elect, in its commercially reasonable judgment,
whether the provisions of Section 12.3 of the Equity
Definitions or Section 9(h)(ii)(A) will apply.
	 
	 	 	 	 
	 

	 	     Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	     Share-for-Other:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	     Share-for-Combined:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	Announcement Event:
	 	If an Announcement Date occurs in respect of a Merger
Event or Tender Offer (such occurrence or any subsequent
announcement relating to the same subject matter, an
“Announcement Event”), then on the earliest of the
Expiration Date, Early Termination Date or other date of
cancellation (the “Announcement Event Adjustment Date”)
in respect of each Warrant, the Calculation Agent will
determine the economic effect on such Warrant of the
Announcement Event (regardless of whether the
Announcement Event actually results in a Merger Event or
Tender Offer, and taking into account such factors as the
Calculation Agent may determine, including, without
limitation, changes in volatility, expected dividends,
stock loan rate or liquidity relevant to the Shares or
the Transaction whether prior to or after the
Announcement Event or for any period of time, including,
without limitation, the period from the Announcement
Event to the relevant Announcement Event Adjustment
Date). If the Calculation Agent determines that such
economic effect on any Warrant is material, then on the
Announcement Event Adjustment Date for such Warrant, the
Calculation Agent shall make such adjustment to the
exercise, settlement, payment or any other terms of such
Warrant as the Calculation Agent determines in its
reasonable discretion is appropriate to account for such
economic effect, which adjustment shall be effective
immediately prior to the exercise, termination or
cancellation of such Warrant, as the case may be. For
the avoidance of doubt, if more than one Announcement
Event occurs before the Announcement Event Adjustment
Date, such adjustment shall take into account each such
Announcement Event.
	 
	 	 	 	 
	 

	 	     Announcement Date:
	 	The definition of “Announcement Date” in Section 12.1 of
the Equity Definitions is hereby amended by (i) replacing
the words “a firm” with the word “any” in the second and
fourth lines thereof, (ii) replacing the word “leads to
the” with the words “, if completed, would lead

8

 

	 	 	 	 	 

	 

	 	 	 	to a” in the third and the fifth lines thereof, (iii)
replacing the words “voting shares” with the word
“Shares” in the fifth line thereof, and (iv) inserting
the words “by any entity” after the word “announcement”
in the second and the fourth lines thereof.
	 
	 	 	 	 
	 

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

	 	Additional Disruption
Events:	 	 
	 
	 	 	 	 
	 

	 	     Change in Law:
	 	Applicable; provided that (i) Section 12.9(a)(ii) of the
Equity Definitions is hereby amended by replacing the
parenthetical beginning after the word “regulation” in
the second line thereof with the words “(including, for
the avoidance of doubt and without limitation, (x) any
tax law or (y) adoption or promulgation of new
regulations authorized or mandated by existing statute)”
and (ii) Section 12.9(a)(ii)(X) of the Equity Definitions
is hereby amended by replacing the word “Shares” with the
phrase “Hedge Positions.”
	 
	 	 	 	 
	 

	 	          Failure to Deliver:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	          Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	          Hedging Disruption:
	 	Applicable; provided that:

	 	(i)	 	Section 12.9(a)(v) of the Equity Definitions is hereby amended
by inserting the following two phrases at the end of
such Section;
	 
	 	 	 	“For the avoidance of doubt, the term “equity price
risk” shall be deemed to include, but shall not be
limited to, stock price and volatility risk. And, for
the further avoidance of doubt, any such transactions
or assets referred to in phrases (A) or (B) above must
be available on commercially reasonable pricing
terms.”; and
	 
	 	(ii)	 	Section 12.9(b)(iii) of the Equity Definitions is hereby
amended by inserting in the third line thereof, after
the words “to terminate the Transaction”, the words “or
a portion of the Transaction affected by such Hedging
Disruption”.

9

 

	 	 	 	 	 

	 

	 	     Increased Cost of Hedging:
	 	Applicable
	 
	 	 	 	 
	 

	 	     Loss of Stock Borrow:
	 	Applicable
	 
	 	 	 	 
	 

	 	          Maximum Stock Loan Rate:
	 	200 basis points
	 
	 	 	 	 
	 

	 	     Increased Cost of Stock Borrow:
	 	Applicable
	 
	 	 	 	 
	 

	 	          Initial Stock Loan Rate:
	 	25 basis points
	 
	 	 	 	 
	 

	 	     Hedging Party:
	 	For all applicable Additional Disruption Events, Dealer.
	 
	 	 	 	 
	 

	 	Determining Party:
	 	For all applicable Extraordinary Events, Dealer.
	 
	 	 	 	 
	 

	 	Non-Reliance:
	 	Applicable
	 
	 	 	 	 
	 

	 	Agreements and Acknowledgments	 	 
	 

	 	Regarding Hedging Activities:
	 	Applicable
	 
	 	 	 	 
	 

	 	Additional Acknowledgments:
	 	Applicable
	 
	 	 	 	 
	4.

	 	Calculation Agent.
	 	Dealer, whose judgments, determinations and calculations shall be
made in good faith and in a commercially reasonable manner. Following any determination or
calculation by the Calculation Agent hereunder, upon a written request by Company, the
Calculation Agent will provide to Company by e-mail to the e-mail address provided by Company
in such written request a report (in a commonly used file format for the storage and
manipulation of financial data) displaying in reasonable detail the basis for such
calculation, it being understood that the Calculation Agent shall not be obligated to disclose
any proprietary models used by it for such calculation.

	5.	 	Account Details.

	 	(a)	 	Account for payments to Company:
	 
	 	 	 	Bank Name: Wells Fargo Bank

ABA #: 121000248

Beneficiary: First Clearing, LLC

Account #: 4122023377

FFC Account Name: Integra LifeSciences Holdings Corp

FFC Account Number: 8595-0713
	 
	 	 	 	Account for delivery of Shares from Company:
	 
	 	 	 	American Stock Transfer & Trust Co LLC

Transfer Agent # 2941

Account # 10249
	 
	 	(b)	 	Account for payments to Dealer:
	 
	 	 	 	To be provided by Dealer.
	 
	 	 	 	Account for delivery of Shares to Dealer:

10

 

	 	 	 	To be provided by Dealer.

	6.	 	Offices.

	 	(a)	 	The Office of Company for the Transaction is: Inapplicable, Company is not a
Multibranch Party.
	 
	 	(b)	 	The Office of Dealer for the Transaction is: London

	7.	 	Notices.

	 	(a)	 	Address for notices or communications to Company:
	 
	 	 	 	Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention:            Treasurer

Telephone No.:   (609) 275-0500

Facsimile No.:      (609) 750-4264

	 	(b)	 	Address for notices or communications to Dealer:

	 	 	 

	To:

	 	Deutsche Bank AG, London Branch
	 

	 	c/o Deutsche Bank Securities Inc.
	Attn:

	 	Faiz Khan / Andrew Yaeger
	Group:

	 	Equity-Linked Capital Markets
	 

	 	60 Wall Street, 4th Floor
	 

	 	New York, NY 10005
	Faiz Tel:

	 	212-250-0668
	Faiz Email:

	 	faiz.khan@db.com
	Andrew Tel:

	 	212-250-2717
	Andrew Email:

	 	Andrew.yaeger@db.com
	Facsimile:

	 	732-460-7499
	 
	 	 
	With a copy to:
	 	 
	 
	 	 
	Attn:

	 	Lars Kestner / Dushyant Chadha
	Group:

	 	Corporate Derivatives
	 

	 	60 Wall Street, 4th Floor
	 

	 	New York, NY 10005
	Lars Tel:

	 	212-250-6043
	Lars Email:

	 	lars.kestner@db.com
	Dushyant Tel:

	 	212-250-4980
	Dushyant Email:

	 	dushyant.chadha@db.com

	8.	 	Representations and Warranties of Company.
	 
	 	 	Each of the representations and warranties of Company set forth in Section 3 of the Purchase
Agreement (the “Purchase Agreement”), dated as of June 9, 2011, between Company and the
representatives of the Initial Purchasers party thereto (the “Representatives”), is true and
correct and is hereby deemed to be repeated to Dealer as if set forth herein; provided that
no such representation or warranty, other than the representations and warranties set forth
in Sections 3(a), (b), (d) and (e) of the Purchase Agreement, may be the basis of an Event
of Default under Section 5(a)(iv) of the Agreement. Company hereby further represents and
warrants to Dealer on the date hereof, on and as of the Premium Payment Date and, in the
case of the representations in Section 8(d), at all times until termination of the
Transaction, that:

	 	(a)	 	Company has all necessary corporate power and authority to execute, deliver and
perform its obligations in respect of the Transaction; such execution, delivery and
performance have been

11

 

	 	 	 	duly authorized by all necessary corporate action on Company’s part; and this
Confirmation has been duly and validly executed and delivered by Company and
constitutes its valid and binding obligation, enforceable against Company in
accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and similar laws affecting creditors’ rights
and remedies generally, and subject, as to enforceability, to general principles of
equity, including principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at law or in
equity) and except that rights to indemnification and contribution hereunder may be
limited by federal or state securities laws or public policy relating thereto.
	 
	 	(b)	 	Neither the execution and delivery of this Confirmation nor the incurrence or
performance of obligations of Company hereunder will conflict with or result in a
breach of the certificate of incorporation or by-laws (or any equivalent documents) of
Company, or any applicable law or regulation, or any order, writ, injunction or decree
of any court or governmental authority or agency, or any agreement or instrument to
which Company or any of its subsidiaries is a party or by which Company or any of its
subsidiaries is bound or to which Company or any of its subsidiaries is subject, or
constitute a default under, or result in the creation of any lien under, any such
agreement or instrument.
	 
	 	(c)	 	No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required in connection with the execution,
delivery or performance by Company of this Confirmation, except such as have been
obtained or made and such as may be required under the Securities Act of 1933, as
amended (the “Securities Act”) or state securities laws.
	 
	 	(d)	 	A number of Shares equal to the Maximum Number of Shares (as defined below)
(the “Warrant Shares”) have been reserved for issuance by all required corporate action
of Company. The Warrant Shares have been duly authorized and, when delivered against
payment therefor (which may include Net Share Settlement in lieu of cash) and otherwise
as contemplated by the terms of the Warrants following the exercise of the Warrants in
accordance with the terms and conditions of the Warrants, will be validly issued,
fully-paid and non-assessable, and the issuance of the Warrant Shares will not be
subject to any preemptive or similar rights.
	 
	 	(e)	 	Company is not and will not be required to register as an “investment company”
as such term is defined in the Investment Company Act of 1940, as amended.
	 
	 	(f)	 	Company is an “eligible contract participant” (as such term is defined in
Section 1a(12) of the Commodity Exchange Act, as amended, other than a person that is
an eligible contract participant under Section 1a(12)(C) of the Commodity Exchange
Act).
	 
	 	(g)	 	Each of Company and its officers and directors is not, on the date hereof, in
possession of any material non-public information with respect to Company or the
Shares.

	9.	 	Other Provisions.

	 	(a)	 	Opinions. Company shall deliver to Dealer an opinion of counsel, dated
as of the Trade Date, with respect to the matters set forth in Sections 8(a) through
(d) of this Confirmation. Delivery of such opinion to Dealer shall be a condition
precedent for the purpose of Section 2(a)(iii) of the Agreement with respect to each
obligation of Dealer under Section 2(a)(i) of the Agreement.
	 
	 	(b)	 	Repurchase Notices. Company shall, on any day on which Company effects
any repurchase of Shares, promptly give Dealer a written notice of such repurchase (a
“Repurchase Notice”) on such day if following such repurchase, the number of
outstanding Shares on such day, subject to any adjustments provided herein, is (i) less
than 26,749,873 (in the case of the first such notice) or (ii) thereafter more than
1,622,916 less than the number of Shares included in the immediately preceding
Repurchase Notice. Company agrees to indemnify and hold harmless Dealer and its
affiliates and their respective officers, directors, employees, affiliates, advisors,
agents and controlling persons (each, an “Indemnified Person”) from and against any and
all losses (including losses relating to Dealer’s hedging activities as a consequence
of becoming, or of the

12

 

	 	 	 	risk of becoming, a Section 16 “insider”, including without limitation, any
forbearance from hedging activities or cessation of hedging activities and any
losses in connection therewith with respect to the Transaction), claims, damages,
judgments, liabilities and expenses (including reasonable attorney’s fees), joint or
several, that an Indemnified Person actually may become subject to, as a result of
Company’s failure to provide Dealer with a Repurchase Notice on the day and in the
manner specified in this paragraph, and to reimburse, within 30 days, upon written
request, each of such Indemnified Persons for any reasonable legal or other expenses
incurred in connection with investigating, preparing for, providing testimony or
other evidence in connection with or defending any of the foregoing. If any suit,
action, proceeding (including any governmental or regulatory investigation), claim
or demand shall be brought or asserted against the Indemnified Person, such
Indemnified Person shall promptly notify Company in writing, and Company, upon
request of the Indemnified Person, shall retain counsel reasonably satisfactory to
the Indemnified Person to represent the Indemnified Person and any others Company
may designate in such proceeding and shall pay the fees and expenses of such counsel
related to such proceeding. Company shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or
if there be a final judgment for the plaintiff, Company agrees to indemnify any
Indemnified Person from and against any loss or liability by reason of such
settlement or judgment. Company shall not, without the prior written consent of the
Indemnified Person, effect any settlement of any pending or threatened proceeding in
respect of which any Indemnified Person is or could have been a party and indemnity
could have been sought hereunder by such Indemnified Person, unless such settlement
includes an unconditional release of such Indemnified Person from all liability on
claims that are the subject matter of such proceeding on terms reasonably
satisfactory to such Indemnified Person. If the indemnification provided for in
this paragraph is unavailable to an Indemnified Person or insufficient in respect of
any losses, claims, damages or liabilities referred to therein, then Company under
such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall
contribute to the amount paid or payable by such Indemnified Person as a result of
such losses, claims, damages or liabilities. The remedies provided for in this
paragraph are not exclusive and shall not limit any rights or remedies that may
otherwise be available to any Indemnified Person at law or in equity. The indemnity
and contribution agreements contained in this paragraph shall remain operative and
in full force and effect regardless of the termination of the Transaction.
	 
	 	(c)	 	Regulation M. Company is not on the Trade Date engaged in a
distribution, as such term is used in Regulation M under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), of any securities of Company, other than a
distribution meeting the requirements of the exception set forth in Rules 101(b)(10)
and 102(b)(7) of Regulation M. Company shall not, until the second Scheduled Trading
Day immediately following the Effective Date, engage in any such distribution.
	 
	 	(d)	 	No Manipulation. Company is not entering into the Transaction to
create actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares)
or otherwise in violation of the Exchange Act.
	 
	 	(e)	 	Transfer or Assignment. Company may not transfer any of its rights or
obligations under the Transaction without the prior written consent of Dealer. Dealer
may, without Company’s consent, transfer or assign all or any part of its rights or
obligations under the Transaction to any third party. If at any time at which (A) the
Section 16 Percentage exceeds 7.5%, (B) the Warrant Equity Percentage exceeds 14.5%, or
(C) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such
condition described in clauses (A), (B) or (C), an “Excess Ownership Position”), Dealer
is unable after using its commercially reasonable efforts to effect a transfer or
assignment of Warrants to a third party on pricing terms reasonably acceptable to
Dealer and within a time period reasonably acceptable to Dealer such that no Excess
Ownership Position exists, then Dealer may designate any Exchange Business Day as an
Early Termination Date with respect to a portion of the Transaction (the “Terminated
Portion”), such that following such partial termination no Excess Ownership Position
exists. In the event that Dealer so designates an Early Termination Date with respect
to a Terminated Portion, a payment shall be made pursuant to

13

 

	 	 	 	Section 6 of the Agreement as if (1) an Early Termination Date had been designated
in respect of a Transaction having terms identical to the Transaction and a Number
of Warrants equal to the number of Warrants underlying the Terminated Portion, (2)
Company were the sole Affected Party with respect to such partial termination and
(3) the Terminated Portion were the sole Affected Transaction (and, for the
avoidance of doubt, the provisions of Section 9(j) shall apply to any amount that is
payable by Company to Dealer pursuant to this sentence as if Company was not the
Affected Party). The “Section 16 Percentage” as of any day is the fraction,
expressed as a percentage, (A) the numerator of which is the number of Shares that
Dealer and each person subject to aggregation of Shares with Dealer under Section 13
or Section 16 of the Exchange Act and rules promulgated thereunder directly or
indirectly beneficially own (as defined under Section 13 or Section 16 of the
Exchange Act and rules promulgated thereunder) and (B) the denominator of which is
the number of Shares outstanding. The “Warrant Equity Percentage” as of any day is
the fraction, expressed as a percentage, (A) the numerator of which is the sum of
(1) the product of the Number of Warrants and the Warrant Entitlement and (2) the
aggregate number of Shares underlying any other warrants purchased by Dealer from
Company, and (B) the denominator of which is the number of Shares outstanding. The
“Share Amount” as of any day is the number of Shares that Dealer and any person
whose ownership position would be aggregated with that of Dealer (Dealer or any such
person, a “Dealer Person”) under any law, rule, regulation, regulatory order or
organizational documents or contracts of Company that are, in each case, applicable
to ownership of Shares (“Applicable Restrictions”), owns, beneficially owns,
constructively owns, controls, holds the power to vote or otherwise meets a relevant
definition of ownership under any Applicable Restriction, as determined by Dealer in
its reasonable discretion. The “Applicable Share Limit” means a number of Shares
equal to (A) the minimum number of Shares that could give rise to reporting or
registration obligations (except for any filings of Schedule 13D or Schedule 13G
under the Exchange Act or any other filing obligations applicable as of the date
hereof) or other requirements (including obtaining prior approval from any person or
entity) of a Dealer Person, or could result in an adverse effect on a Dealer Person,
under any Applicable Restriction, as determined by Dealer in its reasonable
discretion, minus (B) 1% of the number of Shares outstanding. Notwithstanding any
other provision in this Confirmation to the contrary requiring or allowing Dealer to
purchase, sell, receive or deliver any Shares or other securities, or make or
receive any payment in cash, to or from Company, Dealer may designate any of its
affiliates to purchase, sell, receive or deliver such Shares or other securities, or
make or receive such payment in cash, and otherwise to perform Dealer’s obligations
in respect of the Transaction and any such designee may assume such obligations.
Dealer shall be discharged of its obligations to Company to the extent of any such
performance.
	 
	 	(f)	 	Dividends. If at any time during the period from and including the
Effective Date, to and including the last Expiration Date, an ex-dividend date for a
cash dividend occurs with respect to the Shares (an “Ex-Dividend Date”), then the
Calculation Agent will adjust any of the Strike Price, Number of Warrants and/or Daily
Number of Warrants to preserve the fair value of the Warrants to Dealer after taking
into account such dividend.
	 
	 	(g)	 	Role of Agent. Whenever delivery of funds or other assets is required
hereunder by or to Company, such delivery shall be effected through DBSI. In addition,
all notices, demands and communications of any kind relating to the Transaction between
Dealer and Company shall be transmitted exclusively through DBSI.
	 
	 	(h)	 	Additional Provisions.

	 	(i)	 	Amendments to the Equity Definitions:

	 	(A)	 	Section 11.2(a) of the Equity Definitions is
hereby amended by deleting the words “a diluting or concentrative” and
replacing them with the words “an”; and adding the phrase “or Warrants”
at the end of the sentence.
	 
	 	(B)	 	Section 11.2(c) of the Equity Definitions is
hereby amended by (x) replacing the words “a diluting or concentrative”
with “an”, (y) adding the phrase “or

14

 

	 	 	 	Warrants” after the words “the relevant Shares” in the same sentence
and (z) deleting the phrase “(provided that no adjustments will be
made to account solely for changes in volatility, expected dividends,
stock loan rate or liquidity relative to the relevant Shares)” and
replacing it with the phrase “(and, for the avoidance of doubt,
adjustments may be made to account solely for changes in volatility,
expected dividends, stock loan rate or liquidity relative to the
relevant Shares).”
	 
	 	(C)	 	Section 11.2(e)(vii) of the Equity Definitions
is hereby amended by deleting the words “a diluting or concentrative”
and replacing them with the word “a material”; and adding the phrase
“or Warrants” at the end of the sentence.
	 
	 	(D)	 	Section 12.6(a)(ii) of the Equity Definitions
is hereby amended by (1) deleting from the fourth line thereof the word
“or” after the word “official” and inserting a comma therefor, and (2)
deleting the semi-colon at the end of subsection (B) thereof and
inserting the following words therefor “or (C) at Dealer’s option, the
occurrence of any of the events specified in Section 5(a)(vii) (1)
through (9) of the ISDA Master Agreement with respect to that Issuer.”
	 
	 	(E)	 	Section 12.9(b)(iv) of the Equity Definitions
is hereby amended by:

	 	(x)	 	deleting (1) subsection (A) in
its entirety, (2) the phrase “or (B)” following subsection (A)
and (3) the phrase “in each case” in subsection (B); and
	 
	 	(y)	 	deleting the phrase “neither the
Non-Hedging Party nor the Lending Party lends Shares in the
amount of the Hedging Shares or” in the penultimate sentence.

	 	(F)	 	Section 12.9(b)(v) of the Equity Definitions is
hereby amended by:

	 	(x)	 	adding the word “or” immediately
before subsection “(B)” and deleting the comma at the end of
subsection (A); and
	 
	 	(y)	 	(1) deleting subsection (C) in
its entirety, (2) deleting the word “or” immediately preceding
subsection (C) and (3) deleting the penultimate sentence in its
entirety and replacing it with the sentence “The Hedging Party
will determine the Cancellation Amount payable by one party to
the other.”

	 	(ii)	 	Notwithstanding anything to the contrary in this Confirmation,
upon the occurrence of one of the following events, with respect to the
Transaction, (1) Dealer shall have the right to designate such event an
Additional Termination Event and designate an Early Termination Date pursuant
to Section 6(b) of the Agreement, (2) Company shall be deemed the sole Affected
Party with respect to such Additional Termination Event and (3) the Transaction
shall be deemed the sole Affected Transaction:

	 	(A)	 	A “person” or “group” within the meaning of
Section 13(d) of the Exchange Act, other than Company, its subsidiaries
and its and their employee benefit plans, files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such
person or group has become the “beneficial owner,” as defined in Rule
13d-3 under the Exchange Act, of the common equity of Company
representing more than 50% of the voting power of such common equity.
	 
	 	(B)	 	The consummation of (I) any recapitalization,
reclassification or change of the Shares (other than changes resulting
from a subdivision or combination) as a result of which the Shares
would be converted into, or exchanged for, stock,

15

 

	 		 	other securities, other property or assets, (II) any share exchange,
consolidation or merger of Company pursuant to which the Shares will
be converted into cash, securities or other property, other than a
merger of Company solely for the purpose of changing Company’s
jurisdiction of incorporation, that results in a reclassification,
conversion or exchange of then outstanding Shares solely into shares
of common stock of the surviving entity, or (III) any sale, lease or
other transfer in one transaction or a series of transactions of all
or substantially all of the consolidated assets of Company and its
subsidiaries, taken as a whole, to any person other than one of
Company’s subsidiaries; provided, however, that a transaction
described in clause (II) pursuant to which one or more holders of
Company’s common equity entitled to vote generally in elections of
directors immediately prior to such transaction have the entitlement
to exercise, directly or indirectly, 50% or more of the total voting
power of all classes of Company’s common equity entitled to vote
generally in elections of directors of the continuing or surviving
person immediately after giving effect to such transaction shall not
constitute an Additional Termination Event pursuant to this clause
(B).
	 
	 	(C)	 	Default by Company or any subsidiary of Company
in the payment when due, after the expiration of any applicable grace
period, of principal of, or premium, if any, or interest on, recourse
indebtedness for money borrowed in the aggregate principal amount then
outstanding of $25.0 million or more, or acceleration of Company’s or
any subsidiary of Company’s recourse indebtedness for money borrowed in
the aggregate principal amount of $25.0 million or more so that it
becomes due and payable before the date on which it would otherwise
have become due and payable, if such default is not cured or waived, or
such acceleration is not rescinded, as the case may be.
	 
	 	(D)	 	A final judgment for the payment of $25.0
million or more (excluding any amounts covered by insurance) rendered
against Company or any of its subsidiaries, which judgment is not
discharged or stayed within 60 days after (I) the date on which the
right to appeal thereof has expired if no such appeal has commenced, or
(II) the date on which all rights to appeal have been extinguished.
	 
	 	(E)	 	Dealer, despite using commercially reasonable
efforts, is unable or reasonably determines that it is impractical or
illegal, to hedge its exposure with respect to the Transaction in the
public market without registration under the Securities Act or as a
result of any legal, regulatory or self-regulatory requirements or
related policies and procedures (whether or not such requirements,
policies or procedures are imposed by law or have been voluntarily
adopted by Dealer).

	 	 	 	Notwithstanding the foregoing, a transaction or transactions described in
clauses (A) or (B) above shall not constitute an Additional Termination
Event if at least 90% of the consideration received or to be received by the
holders of the Shares, excluding cash payments for fractional shares and
cash payments made in respect of dissenters’ appraisal rights, in connection
with such transaction or transactions consists of shares of common stock,
ordinary shares, American depositary receipts or American depositary shares
that are listed or quoted on any of The New York Stock Exchange, The NASDAQ
Global Select Market or The NASDAQ Global Market (or any of their respective
successors) or will be so listed or quoted when issued or exchanged in
connection with such transaction or transactions

	 	(i)	 	No Collateral or Set-off. Notwithstanding any provision of the
Agreement or any other agreement between the parties to the contrary, the obligations
of Company hereunder are not secured by any collateral. Each party waives any and all
rights it may have to set off obligations arising under the

16

 

	 	 	 	Agreement and the Transaction against other obligations between the parties, whether
arising under any other agreement, applicable law or otherwise.
	 
	 	(j)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events. If, in respect of the Transaction, an amount is payable by
Company to Dealer, (A) pursuant to Section 12.7 or Section 12.9 of the Equity
Definitions or (B) pursuant to Section 6(d)(ii) of the Agreement (any such amount, a
“Payment Obligation”), Company shall have the right, in its sole discretion, to satisfy
the Payment Obligation by the Share Termination Alternative (as defined below) (except
that Company shall not have the right to make such an election in the event of (I) a
Nationalization, Insolvency, Merger Event or Tender Offer in which the consideration to
be paid to holders of Shares consists solely of cash, (II) a Merger Event or Tender
Offer that is within Company’s control, or (III) an Event of Default in which Company
is the Defaulting Party or a Termination Event in which Company is the Affected Party,
other than an Event of Default of the type described in Section 5(a)(iii), (v), (vi),
(vii) or (viii) of the Agreement or a Termination Event of the type described in
Section 5(b) of the Agreement, in each case that resulted from an event or events
outside Company’s control) and shall give irrevocable telephonic notice to Dealer,
confirmed in writing within one Scheduled Trading Day, no later than 5:00 p.m. (New
York City time) on the Merger Date, Tender Offer Date, Announcement Date (in the case
of a Nationalization, Insolvency or Delisting), Early Termination Date or date of
cancellation, as applicable; provided that if Company does not validly elect to satisfy
the Payment Obligation by the Share Termination Alternative, Dealer shall have the
right to require Company to satisfy its Payment Obligation by the Share Termination
Alternative.

	 	 	 

	Share Termination Alternative:

	 	If applicable, Company shall deliver
to Dealer the Share Termination Delivery Property on the date (the “Share
Termination Payment Date”) on which the Payment Obligation would otherwise be
due pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or
Section 6(d)(ii) of the Agreement, as applicable, subject to Section 9(k)(i)
below, in satisfaction, subject to Section 9(k)(ii) below, of the relevant
Payment Obligation, in the manner reasonably requested by Dealer free of
payment.
	 
	 	 
	Share Termination Delivery
	 	 
	Property:

	 	A number of Share Termination Delivery Units, as calculated by the
Calculation Agent, equal to the relevant Payment Obligation divided by the
Share Termination Unit Price. The Calculation Agent shall adjust the amount of
Share Termination Delivery Property by replacing any fractional portion of a
security therein with an amount of cash equal to the value of such fractional
security based on the values used to calculate the Share Termination Unit Price
(without giving effect to any discount pursuant to Section 9(k)(i)).
	 
	 	 
	Share Termination Unit Price:

	 	The value to Dealer of property
contained in one Share Termination Delivery Unit on the date such Share
Termination Delivery Units are to be delivered as Share Termination Delivery
Property, as determined by the Calculation Agent in its discretion by
commercially reasonable means. In the case of a Private Placement of Share
Termination Delivery Units that are Restricted Shares (as defined below), as
set forth in Section 9(k)(i) below, the Share Termination Unit Price shall be
determined by the discounted price applicable to such Share Termination
Delivery Units. In the case of a Registration Settlement of Share Termination
Delivery Units that are Restricted Shares (as defined below) as set forth in
Section 9(k)(ii) below, the Share Termination Unit Price shall be the

17

 

	 	 	 

	 

	 	Settlement Price on the Merger Date, Tender Offer
Date, Announcement Date (in the case of a
Nationalization, Insolvency or Delisting), Early
Termination Date or date of cancellation, as
applicable. The Calculation Agent shall notify
Company of the Share Termination Unit Price at the
time of notification of such Payment Obligation to
Company or, if applicable, at the time the discounted
price applicable to the relevant Share Termination
Units is determined pursuant to Section 9(k)(i).
	 
	 	 
	Share Termination Delivery Unit:

	 	In the case of a Termination Event,
Event of Default Additional Disruption Event or Delisting, one Share or, in the
case of Nationalization, Insolvency, Tender Offer or Merger Event, a unit
consisting of the number or amount of each type of property received by a
holder of one Share (without consideration of any requirement to pay cash or
other consideration in lieu of fractional amounts of any securities) in such
Nationalization, Insolvency, Tender Offer or Merger Event. If such
Nationalization, Insolvency, Tender Offer or Merger Event involves a choice of
consideration to be received by holders, such holder shall be deemed to have
elected to receive the maximum possible amount of cash.
	 
	 	 
	Failure to Deliver:

	 	Inapplicable
	 
	 	 
	Other applicable provisions:

	 	If Share Alternative Termination is
applicable, the provisions of Sections 9.1(c), 9.8, 9.9, 9.11 (as modified
below), 9.12 and 10.5 of the Equity Definitions will be applicable as if
Physical Settlement were applicable.

	 	(k)	 	Registration/Private Placement Procedures. If, in the reasonable
judgment of Dealer based on the advice of counsel, following any delivery of Shares or
Share Termination Delivery Property to Dealer hereunder, such Shares or Share
Termination Delivery Property would be in the hands of Dealer subject to any applicable
restrictions with respect to any registration or qualification requirement or
prospectus delivery requirement for such Shares or Share Termination Delivery Property
pursuant to any applicable federal or state securities law (including, without
limitation, any such requirement arising under Section 5 of the Securities Act as a
result of such Shares or Share Termination Delivery Property being “restricted
securities”, as such term is defined in Rule 144 under the Securities Act, or as a
result of the sale of such Shares or Share Termination Delivery Property being subject
to paragraph (c) of Rule 145 under the Securities Act) (such Shares or Share
Termination Delivery Property, “Restricted Shares”), then delivery of such Restricted
Shares shall be effected pursuant to either clause (i) or (ii) below at the election of
Company, unless Dealer waives the need for registration/private placement procedures
set forth in (i) and (ii) below. Notwithstanding the foregoing, solely in respect of
any Daily Number of Warrants exercised or deemed exercised on any Expiration Date,
Company shall elect, prior to the first Settlement Date for the First Expiration Date,
a Private Placement Settlement or Registration Settlement for all deliveries of
Restricted Shares for all such Expiration Dates which election shall be applicable to
all Settlement Dates for such Warrants and the procedures in clause (i) or clause (ii)
below shall apply for all such delivered Restricted Shares on an aggregate basis
commencing after the final Settlement Date for such Warrants. The Calculation Agent
shall make reasonable adjustments to settlement terms and provisions under this
Confirmation to reflect a single Private Placement or Registration Settlement for such
aggregate Restricted Shares delivered hereunder.

	 	(i)	 	If Company elects to settle the Transaction pursuant to this
clause (i) (a “Private Placement Settlement”), then delivery of Restricted
Shares by Company shall be effected in accordance with customary private
placement procedures for placements of equity securities of substantially
similar size reasonably acceptable to Dealer; provided

18

 

	 	 	 	that Company may not elect a Private Placement Settlement if, on the date of
its election, it has taken, or caused to be taken, any action that would
make unavailable either the exemption pursuant to Section 4(2) of the
Securities Act for the sale by Company to Dealer (or any affiliate
designated by Dealer) of the Restricted Shares or the exemption pursuant to
Section 4(1) or Section 4(3) of the Securities Act for resales of the
Restricted Shares by Dealer (or any such affiliate of Dealer). The Private
Placement Settlement of such Restricted Shares shall include customary
representations, covenants, blue sky and other governmental filings and/or
registrations, indemnities to Dealer, due diligence rights (for Dealer or
any designated buyer of the Restricted Shares by Dealer), opinions and
certificates, and such other documentation as is customary for private
placements of equity securities of substantially similar size, all
reasonably acceptable to Dealer. In the case of a Private Placement
Settlement, Dealer shall determine the appropriate discount to the Share
Termination Unit Price (in the case of settlement of Share Termination
Delivery Units pursuant to Section 9(j) above) or any Settlement Price (in
the case of settlement of Shares pursuant to Section 2 above) applicable to
such Restricted Shares in a commercially reasonable manner and appropriately
adjust the number of such Restricted Shares to be delivered to Dealer
hereunder. Notwithstanding the Agreement or this Confirmation, the date of
delivery of such Restricted Shares shall be the Exchange Business Day
following notice by Dealer to Company, of such applicable discount and the
number of Restricted Shares to be delivered pursuant to this clause (i).
For the avoidance of doubt, delivery of Restricted Shares shall be due as
set forth in the previous sentence and not be due on the Share Termination
Payment Date (in the case of settlement of Share Termination Delivery Units
pursuant to Section 9(j) above) or on the Settlement Date for such
Restricted Shares (in the case of settlement in Shares pursuant to Section 2
above).
	 
	 	(ii)	 	If Company elects to settle the Transaction pursuant to this
clause (ii) (a “Registration Settlement”), then Company shall promptly (but in
any event no later than the beginning of the Resale Period) file and use its
reasonable best efforts to make effective under the Securities Act a
registration statement or supplement or amend an outstanding registration
statement in form and substance reasonably satisfactory to Dealer, to cover the
resale of such Restricted Shares in accordance with customary resale
registration procedures, including covenants, conditions, representations,
underwriting discounts (if applicable), commissions (if applicable),
indemnities due diligence rights, opinions and certificates, and such other
documentation as is customary in underwriting agreements for equity resales of
substantially similar size, all reasonably acceptable to Dealer. If Dealer, in
its reasonable discretion, is not satisfied with such procedures and
documentation Private Placement Settlement shall apply. If Dealer is satisfied
with such procedures and documentation, it shall sell the Restricted Shares
pursuant to such registration statement during a period (the “Resale Period”)
commencing on the Exchange Business Day following delivery of such Restricted
Shares (which, for the avoidance of doubt, shall be (x) the Share Termination
Payment Date in case of settlement in Share Termination Delivery Units pursuant
to Section 9(j) above or (y) the Settlement Date in respect of the final
Expiration Date for all Daily Number of Warrants) and ending on the earliest of
(i) the Exchange Business Day on which Dealer completes the sale of all
Restricted Shares or, in the case of settlement of Share Termination Delivery
Units, a sufficient number of Restricted Shares so that the realized net
proceeds of such sales equals or exceeds the Payment Obligation (as defined
above), (ii) the date upon which all Restricted Shares have been sold or
transferred pursuant to Rule 144 (or similar provisions then in force) or Rule
145(d)(2) (or any similar provision then in force) under the Securities Act and
(iii) the date upon which all Restricted Shares may be sold or transferred by a
non-affiliate pursuant to Rule 144 (or any similar provision then in force) or
Rule 145(d)(2) (or any similar provision then in force) under the Securities
Act. If the Payment Obligation exceeds the realized net proceeds from such
resale, Company shall transfer to Dealer by the open of the regular trading
session on the Exchange on the Exchange Trading Day immediately following the
last day of the Resale Period the amount of such excess (the

19

 

	 	 	 	“Additional Amount”) in cash or in a number of Shares (“Make-whole Shares”)
in an amount that, based on the Settlement Price on the last day of the
Resale Period (as if such day was the “Valuation Date” for purposes of
computing such Settlement Price), has a dollar value equal to the Additional
Amount. The Resale Period shall continue to enable the sale of the
Make-whole Shares. If Company elects to pay the Additional Amount in
Shares, the requirements and provisions for Registration Settlement shall
apply. This provision shall be applied successively until the Additional
Amount is equal to zero. In no event shall Company deliver a number of
Restricted Shares greater than the Maximum Number of Shares.
	 
	 	(iii)	 	Without limiting the generality of the foregoing, Company
agrees that any Restricted Shares delivered to Dealer, as purchaser of such
Restricted Shares, (A) may be transferred by and among Dealer and its
affiliates and Company shall effect such transfer without any further action by
Dealer and (B) after the period of 6 months from the Trade Date (or 1 year from
the Trade Date if, at such time, informational requirements of Rule 144(c)
under the Securities Act are not satisfied with respect to Company) has elapsed
after any Settlement Date or Share Termination Payment Date, as applicable, for
such Restricted Shares, Company shall promptly remove, or cause the transfer
agent for such Restricted Shares to remove, any legends referring to any such
restrictions or requirements from such Restricted Shares upon request by Dealer
(or such affiliate of Dealer) to Company or such transfer agent, without any
requirement for the delivery of any certificate, consent, agreement, opinion of
counsel, notice or any other document, any transfer tax stamps or payment of
any other amount or any other action by Dealer (or such affiliate of Dealer).
	 
	 	(iv)	 	If the Private Placement Settlement or the Registration
Settlement shall not be effected as set forth in clauses (i) or (ii), as
applicable, then failure to effect such Private Placement Settlement or such
Registration Settlement shall constitute an Event of Default with respect to
which Company shall be the Defaulting Party.

	 	(l)	 	Limit on Beneficial Ownership. Notwithstanding any other provisions
hereof, Dealer may not exercise any Warrant hereunder or be entitled to take delivery
of any Shares deliverable hereunder, and Automatic Exercise shall not apply with
respect to any Warrant hereunder, to the extent (but only to the extent) that, after
such receipt of any Shares upon the exercise of such Warrant or otherwise hereunder and
after taking into account any Shares deliverable to Dealer under the letter agreement
dated June 9, 2011 between Dealer and Company regarding Base Warrants (the “Base
Warrant Confirmation”), (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Applicable Share Limit. Any purported delivery hereunder
shall be void and have no effect to the extent (but only to the extent) that, after
such delivery and after taking into account any Shares deliverable to Dealer under the
Base Warrant Confirmation, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Applicable Share Limit. If any delivery owed to Dealer
hereunder is not made, in whole or in part, as a result of this provision, Company’s
obligation to make such delivery shall not be extinguished and Company shall make such
delivery as promptly as practicable after, but in no event later than one Business Day
after, Dealer gives notice to Company that, after such delivery, (i) the Section 16
Percentage would not exceed 7.5%, and (ii) the Share Amount would not exceed the
Applicable Share Limit.
	 
	 	(m)	 	Share Deliveries. Company acknowledges and agrees that, to the extent
the holder of this Warrant is not then an affiliate and has not been an affiliate for
90 days (it being understood that Dealer will not be considered an affiliate under this
paragraph solely by reason of its receipt of Shares pursuant to the Transaction), and
otherwise satisfies all holding period and other requirements of Rule 144 of the
Securities Act applicable to it, any delivery of Shares or Share Termination Delivery
Property hereunder at any time after 6 months from the Trade Date (or 1 year from the
Trade Date if, at such time, informational requirements of Rule 144(c) are not
satisfied with respect to Company) shall be eligible for resale under Rule 144 of the
Securities Act and Company agrees to promptly remove, or cause the transfer agent for
such Shares or Share

20

 

	 	 	 	Termination Delivery Property, to remove, any legends referring to any restrictions
on resale under the Securities Act from the Shares or Share Termination Delivery
Property. Company further agrees that any delivery of Shares or Share Termination
Delivery Property prior to the date that is 6 months from the Trade Date (or 1 year
from the Trade Date if, at such time, informational requirements of Rule 144(c) are
not satisfied with respect to Company), may be transferred by and among Dealer and
its affiliates and Company shall effect such transfer without any further action by
Dealer. Notwithstanding anything to the contrary herein, Company agrees that any
delivery of Shares or Share Termination Delivery Property shall be effected by
book-entry transfer through the facilities of DTC, or any successor depositary, if
at the time of delivery, such class of Shares or class of Share Termination Delivery
Property is in book-entry form at DTC or such successor depositary. Notwithstanding
anything to the contrary herein, to the extent the provisions of Rule 144 of the
Securities Act or any successor rule are amended, or the applicable interpretation
thereof by the Securities and Exchange Commission or any court change after the
Trade Date, the agreements of Company herein shall be deemed modified to the extent
necessary, in the opinion of outside counsel of Company, to comply with Rule 144 of
the Securities Act, as in effect at the time of delivery of the relevant Shares or
Share Termination Delivery Property.
	 
	 	(n)	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding relating to the Transaction. Each party (i) certifies that
no representative, agent or attorney of the other party has represented, expressly or
otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other party have been induced to enter into the Transaction, as applicable, by, among
other things, the mutual waivers and certifications provided herein.
	 
	 	(o)	 	Tax Disclosure. Effective from the date of commencement of discussions
concerning the Transaction, Company and each of its employees, representatives, or
other agents may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the Transaction and all materials of any kind
(including opinions or other tax analyses) that are provided to Company relating to
such tax treatment and tax structure.
	 
	 	(p)	 	Maximum Share Delivery.

	 	(i)	 	Notwithstanding any other provision of this Confirmation, the
Agreement or the Equity Definitions, in no event will Company at any time be
required to deliver a number of Shares greater than two times the Number of
Shares (the “Maximum Number of Shares”) to Dealer in connection with the
Transaction after taking into account any Shares deliverable to Dealer under
the Base Warrant Confirmation.
	 
	 	(ii)	 	In the event Company shall not have delivered to Dealer the
full number of Shares or Restricted Shares otherwise deliverable by Company to
Dealer pursuant to the terms of the Transaction because Company has
insufficient authorized but unissued Shares (such deficit, the “Deficit
Shares”), Company shall be continually obligated to deliver, from time to time,
Shares or Restricted Shares, as the case may be, to Dealer until the full
number of Deficit Shares have been delivered pursuant to this Section 9(p)(ii),
when, and to the extent that, (A) Shares are repurchased, acquired or otherwise
received by Company or any of its subsidiaries after the Trade Date (whether or
not in exchange for cash, fair value or any other consideration), (B)
authorized and unissued Shares reserved for issuance in respect of other
transactions prior to such date that prior to the relevant date become no
longer so reserved or (C) Company additionally authorizes any unissued Shares
that are not reserved for other transactions; provided that in no event shall
Company deliver any Shares or Restricted Shares to Dealer pursuant to this
Section 9(p)(ii) to the extent that such delivery would cause the aggregate
number of Shares and Restricted Shares delivered to Dealer to exceed the
Maximum Number of Shares. Company shall immediately notify Dealer of the
occurrence of any of the foregoing events (including the number of Shares
subject to clause (A), (B) or (C) and the corresponding number of Shares or
Restricted Shares, as the case may be, to be

21

 

	 	 	 	delivered) and promptly deliver such Shares or Restricted Shares, as the
case may be, thereafter.

	 	(q)	 	Right to Extend. Dealer may postpone, in whole or in part, any
Expiration Date or any other date of valuation or delivery with respect to some or all
of the relevant Warrants (in which event the Calculation Agent shall make appropriate
adjustments to the Daily Number of Warrants with respect to one or more Expiration
Dates) if Dealer determines, in its commercially reasonable judgment based on the
advice of counsel, that such extension is reasonably necessary or advisable to preserve
Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity
conditions or to enable Dealer to effect purchases of Shares in connection with its
hedging, hedge unwind or settlement activity hereunder in a manner that would, if
Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with
applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Dealer.
	 
	 	(r)	 	Status of Claims in Bankruptcy. Dealer acknowledges and agrees that
this Confirmation is not intended to convey to Dealer rights against Company with
respect to the Transaction that are senior to the claims of common stockholders of
Company in any United States bankruptcy proceedings of Company; provided that nothing
herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the
event of a breach by Company of its obligations and agreements with respect to the
Transaction; provided, further, that nothing herein shall limit or shall be deemed to
limit Dealer’s rights in respect of any transactions other than the Transaction.
	 
	 	(s)	 	Securities Contract; Swap Agreement. The parties hereto intend for (i)
the Transaction to be a “securities contract” and a “swap agreement” as defined in the
Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the
parties hereto to be entitled to the protections afforded by, among other Sections,
Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code,
(ii) a party’s right to liquidate the Transaction and to exercise any other remedies
upon the occurrence of any Event of Default under the Agreement with respect to the
other party to constitute a “contractual right” as described in the Bankruptcy Code,
and (iii) each payment and delivery of cash, securities or other property hereunder to
constitute a “margin payment” or “settlement payment” and a “transfer” as defined in
the Bankruptcy Code.
	 
	 	(t)	 	Wall Street Transparency and Accountability Act. In connection with
Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”),
the parties hereby agree that neither the enactment of WSTAA or any regulation under
the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, shall limit
or otherwise impair either party’s otherwise applicable rights to terminate,
renegotiate, modify, amend or supplement this Confirmation or the Agreement, as
applicable, arising from a termination event, force majeure, illegality, increased
costs, regulatory change or similar event under this Confirmation, the Equity
Definitions incorporated herein, or the Agreement (including, but not limited to,
rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, an
Excess Ownership Position, or Illegality (as defined in the Agreement)).
	 
	 	(u)	 	Early Unwind. In the event the sale of the “Option Securities” (as
defined in the Purchase Agreement) is not consummated with the Representatives for any
reason, or Company fails to deliver to Dealer opinions of counsel as required pursuant
to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium Payment
Date, or such later date as agreed upon by the parties (the Premium Payment Date or
such later date the “Early Unwind Date”), the Transaction shall automatically terminate
(the “Early Unwind”), on the Early Unwind Date and (i) the Transaction and all of the
respective rights and obligations of Dealer and Company under the Transaction shall be
cancelled and terminated and (ii) each party shall be released and discharged by the
other party from and agrees not to make any claim against the other party with respect
to any obligations or liabilities of the other party arising out of and to be performed
in connection with the Transaction either prior to or after the Early Unwind Date;
provided that, other than in cases involving a breach of the Purchase Agreement by
Dealer, Company shall purchase from Dealer on the Early Unwind Date all Shares
purchased by Dealer or one or more of its affiliates in connection with the Transaction
at the then prevailing market price. Each of Dealer

22

 

	 	 	 	and Company represents and acknowledges to the other that, subject to the proviso
included in this Section 9(u), upon an Early Unwind, all obligations with respect to
the Transaction shall be deemed fully and finally discharged.
	 
	 	(v)	 	Payment by Dealer. In the event that (i) an Early Termination Date
occurs or is designated with respect to the Transaction as a result of a Termination
Event or an Event of Default (other than an Event of Default arising under Section
5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Company an
amount calculated under Section 6(e) of the Agreement, or (ii) Dealer owes to Company,
pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount
calculated under Section 12.8 of the Equity Definitions, such amount shall be deemed to
be zero.

[Remainder of Page Intentionally Blank]

23

 

     Please confirm that the foregoing correctly sets forth the terms of our agreement by executing
this Confirmation and returning it to Deutsche Bank Securities Inc., 60 Wall Street, New York, NY
10005, or by fax to (212) 797 8974.

	 	 	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Deutsche Bank AG, London Branch	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Lars Kestner	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	Authorized Signatory	 	 
	 

	 	 	 	Name:	 	Lars Kestner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Natalie Heaton	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	Authorized Signatory	 	 
	 

	 	 	 	Name:	 	Natalie Heaton	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Deutsche Bank Securities Inc., acting solely as	 	 
	 	 	 	 	Agent in connection with the Transaction	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Lars Kestner	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	Authorized Signatory	 	 
	 

	 	 	 	Name:	 	Lars Kestner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Natalie Heaton	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	Authorized Signatory	 	 
	 

	 	 	 	Name:	 	Natalie Heaton	 	 

Accepted
and confirmed as of the Trade Date:

Integra LifeSciences Holdings Corporation

	 	 	 	 	 

	By:
	 	/s/ Nora Brennan	 	 
	 

	 	 

	 	 
	Authorized Signatory	 	 
	Name:
	 	Nora Brennan	 	 

[DB Additional Warrant Confirmation]

	 	 	 

	Chairman of the Supervisory Board: Clemens Börsig
Management Board: Josef Ackermann (Chairman), Hugo
Bänziger, Jürgen Fitschen, Anshuman Jain, Stefan
Krause, Hermann-Josef Lamberti, Rainer Neske

	 	Deutsche Bank AG is
authorized under German
Banking Law (competent
authority: BaFin — Federal
Financial Supervising
Authority) and regulated by
the Financial Services
Authority for the conduct of
UK business; a member of the
London Stock Exchange.
Deutsche Bank AG is a joint
stock corporation with
limited liability
incorporated in the Federal
Republic of Germany HRB No.
30 000 District Court of
Frankfurt am Main; Branch
Registration in England and
Wales BR000005; Registered
address: Winchester House, 1
Great Winchester Street,
London EC2N 2DB. Deutsche
Bank Group online:
	 

	 	http://www.deutsche-bank.com

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