Document:

EX-10.33

 Exhibit 10.33 
  

			
	  
 Execution version
	  	

 SALE AND PURCHASE AGREEMENT 

relating to all issued and outstanding shares in the share capital of 

Nexperia Holdco Netherlands B.V. 

Between 
 NXP B.V.

 (as the Seller) 

And 
 Beijing
Jianguang asset Management Co., Ltd. 
 And 

Wise Road Capital LTD 

(as the Purchasers) 

Dated 14 June 2016 

 Contents 
  

									
	Clause	  	 	  	Page	 
			
	 1
	  	 DEFINITIONS AND INTERPRETATION
	  	 	3	 
			
	 2
	  	 SALE, PURCHASE AND TRANSFER
	  	 	3	 
				
		  	 2.1
	  	 Sale and purchase
	  	 	3	 
				
		  	 2.2
	  	 Transfer
	  	 	3	 
				
		  	 2.3
	  	 Directions of proportions and nomination other party
	  	 	3	 
				
		  	 2.4
	  	 Benefit and risk
	  	 	3	 
				
		  	 2.5
	  	 Transaction structure
	  	 	4	 
			
	 3
	  	 CONSIDERATION
	  	 	4	 
				
		  	 3.1
	  	 Purchase Price
	  	 	4	 
				
		  	 3.2
	  	 Payments at Completion
	  	 	5	 
				
		  	 3.3
	  	 Allocation
	  	 	5	 
			
	 4
	  	 COMPLETION CONDITIONS
	  	 	5	 
				
		  	 4.1
	  	 Conditions
	  	 	5	 
				
		  	 4.2
	  	 Responsibility for satisfaction
	  	 	7	 
				
		  	 4.3
	  	 Merger Clearance Filings
	  	 	7	 
				
		  	 4.4
	  	 Works Council
	  	 	9	 
				
		  	 4.5
	  	 CFIUS
	  	 	11	 
				
		  	 4.6
	  	 Cooperation to complete the Transaction
	  	 	13	 
				
		  	 4.7
	  	 Satisfaction and waiver of Completion Conditions
	  	 	14	 
				
		  	 4.8
	  	 Long stop date
	  	 	14	 
			
	 5
	  	 PRE-COMPLETION UNDERTAKINGS
	  	 	14	 
				
		  	 5.1
	  	 Operation of the Business prior to Completion
	  	 	14	 
				
		  	 5.2
	  	 Excused conduct
	  	 	16	 
				
		  	 5.3
	  	 Finalisation of Ancillary Agreements and Schedules
	  	 	17	 
				
		  	 5.4
	  	 Disentanglement
	  	 	17	 
				
		  	 5.5
	  	 Overseas Investment Filings
	  	 	18	 
				
		  	 5.6
	  	 Deposit Amount
	  	 	18	 
				
		  	 5.7
	  	 Late filing
	  	 	19	 
				
		  	 5.8
	  	 Intragroup transactions
	  	 	20	 
				
		  	 5.9
	  	 Estimated statements
	  	 	21	 
				
		  	 5.10
	  	 Funding of the Estimated Purchase Price
	  	 	21	 
				
		  	 5.11
	  	 Access to information
	  	 	21	 
				
		  	 5.12
	  	 Execution of the Notary Letter
	  	 	22	 
				
		  	 5.13
	  	 Termination of non-disclosure agreements with other
bidders
	  	 	22	 
			
	 6
	  	 COMPLETION
	  	 	22	 
				
		  	 6.1
	  	 Completion date and place
	  	 	22	 

  
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		  	 6.2
	  	 Completion actions
	  	 	23	 
				
		  	 6.3
	  	 Procurement of sale and transfer of Hamburg Site
	  	 	25	 
				
		  	 6.4
	  	 Breach of Completion obligations; Default Payment Fee
	  	 	25	 
				
		  	 6.5
	  	 Acknowledgement of Notary and bank
	  	 	26	 
			
	 7
	  	 COMPLETION ADJUSTMENTS
	  	 	27	 
				
		  	 7.1
	  	 The Statements
	  	 	27	 
				
		  	 7.2
	  	 Principles
	  	 	27	 
				
		  	 7.3
	  	 Determination of the Statements
	  	 	28	 
				
		  	 7.4
	  	 No forward looking valuations
	  	 	29	 
				
		  	 7.5
	  	 Adjustment of the Estimated Purchase Price
	  	 	29	 
				
		  	 7.6
	  	 Payment
	  	 	30	 
			
	 8
	  	 POST-COMPLETION OBLIGATIONS
	  	 	30	 
				
		  	 8.1
	  	 Pre-Completion Receivables and Pre-Completion Payables
	  	 	30	 
				
		  	 8.2
	  	 Retention of records
	  	 	30	 
				
		  	 8.3
	  	 Insurance
	  	 	31	 
				
		  	 8.4
	  	 Release of Guarantees
	  	 	32	 
				
		  	 8.5
	  	 Merger Philippines
	  	 	33	 
			
	 9
	  	 WARRANTIES
	  	 	33	 
				
		  	 9.1
	  	 Seller’s Warranties
	  	 	33	 
				
		  	 9.2
	  	 Purchasers’ Warranties
	  	 	34	 
				
		  	 9.3
	  	 Exclusion of certain BW provisions
	  	 	34	 
			
	 10
	  	 LIABILITY
	  	 	34	 
				
		  	 10.1
	  	 Liability of the Seller
	  	 	34	 
				
		  	 10.2
	  	 Time limitations
	  	 	35	 
				
		  	 10.3
	  	 Minimum claims
	  	 	35	 
				
		  	 10.4
	  	 Aggregate minimum claims
	  	 	36	 
				
		  	 10.5
	  	 Maximum liability
	  	 	36	 
				
		  	 10.6
	  	 Purchasers’ awareness
	  	 	36	 
				
		  	 10.7
	  	 Provisions
	  	 	36	 
				
		  	 10.8
	  	 Excluded matters
	  	 	37	 
				
		  	 10.9
	  	 Purchasers’ insurance
	  	 	38	 
				
		  	 10.10
	  	 Net financial benefit
	  	 	38	 
				
		  	 10.11
	  	 Breaches capable of remedy
	  	 	38	 
				
		  	 10.12
	  	 Mitigation of Losses
	  	 	38	 
				
		  	 10.13
	  	 Purchasers’ right to recover
	  	 	38	 
				
		  	 10.14
	  	 No double claims
	  	 	39	 
				
		  	 10.15
	  	 Contingent Liabilities
	  	 	40	 

  
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		  	 10.16
	  	 Liability of the Purchasers
	  	 	40	 
				
		  	 10.17
	  	 Third-party stipulation
	  	 	40	 
				
		  	 10.18
	  	 No recourse for Seller
	  	 	41	 
				
		  	 10.19
	  	 Fraud and gross negligence
	  	 	41	 
			
	 11
	  	 CLAIMS
	  	 	41	 
				
		  	 11.1
	  	 Notification of potential claims
	  	 	41	 
				
		  	 11.2
	  	 Notification of claims
	  	 	41	 
				
		  	 11.3
	  	 Commencement of proceedings
	  	 	42	 
				
		  	 11.4
	  	 Procedure for Third-Party Claims
	  	 	42	 
				
		  	 11.5
	  	 Third-party stipulation limitation
	  	 	43	 
				
	 12
	  	 TAX
	  		  	 	43	 
			
	 13
	  	 EMPLOYEES AND PENSION PLANS
	  	 	43	 
				
		  	 13.1
	  	 Employees
	  	 	43	 
				
		  	 13.2
	  	 Pension Plans
	  	 	43	 
			
	 14
	  	 RESTRICTIONS ON SELLER
	  	 	44	 
				
		  	 14.1
	  	 Non-solicit
	  	 	44	 
				
		  	 14.2
	  	 Ancillary restrictions
	  	 	44	 
			
	 15
	  	 CONFIDENTIALITY
	  	 	45	 
				
		  	 15.1
	  	 Public announcements
	  	 	45	 
				
		  	 15.2
	  	 Confidentiality undertaking
	  	 	45	 
			
	 16
	  	 MISCELLANEOUS
	  	 	46	 
				
		  	 16.1
	  	 Further assurances
	  	 	46	 
				
		  	 16.2
	  	 Entire agreement
	  	 	46	 
				
		  	 16.3
	  	 Assignment
	  	 	46	 
				
		  	 16.4
	  	 Invalidity
	  	 	46	 
				
		  	 16.5
	  	 Counterparts
	  	 	47	 
				
		  	 16.6
	  	 Waiver
	  	 	47	 
				
		  	 16.7
	  	 Amendment
	  	 	47	 
				
		  	 16.8
	  	 Third-party rights
	  	 	47	 
				
		  	 16.9
	  	 No rescission
	  	 	47	 
				
		  	 16.10
	  	 No withholding and gross up
	  	 	47	 
				
		  	 16.11
	  	 Method of payment
	  	 	48	 
				
		  	 16.12
	  	 Set-off
	  	 	48	 
				
		  	 16.13
	  	 Adjustment of the Purchase Price
	  	 	48	 
				
		  	 16.14
	  	 Costs
	  	 	48	 
				
		  	 16.15
	  	 Interest
	  	 	50	 
				
		  	 16.16
	  	 Notices
	  	 	50	 

  
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	 17
	  	 GOVERNING LAW AND DISPUTE RESOLUTION
	  	 	51	 
				
		  	 17.1
	  	 Governing law
	  	 	51	 
				
		  	 17.2
	  	 Dispute resolution
	  	 	51	 
				
		  	 17.3
	  	 Other disputes
	  	 	52	 

  
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 Schedules 
  

			
	Schedule 1	  	Definitions and interpretation
		
	Schedule 2	  	Dedicated Companies*
		
	Schedule 3	  	Completion Statements
		
	Schedule 4	  	Disentanglement Completion Actions
		
	Schedule 5	  	Reporting Accountants
		
	Schedule 6	  	Merger Clearance Filings
		
	Schedule 7	  	Seller’s Warranties
		
	Schedule 8	  	Purchasers’ Warranties
		
	Schedule 9	  	Tax
		
	Schedule 10	  	Disentanglement Plan
		
	Schedule 11	  	Transferred Property
		
	Schedule 12	  	Restricted Employees
		
	Schedule 13	  	Excluded Employees
		
	Schedule 14	  	Parties’ details for Notices
		
	Schedule 15	  	Seller’s Knowledge persons
		
	Schedule 16	  	Agreed Form Deed of Transfer
		
	Schedule 17	  	The Funds
		
	Schedule 18	  	Equity Commitment Letter
		
	Schedule 19	  	Escrow Agreement
		
	Schedule 20	  	Agreed Form Ancillary Agreements
		
	Schedule 21	  	Allocation of the Purchase Price
		
	Schedule 22	  	Data Room DVD
		
	Schedule 23	  	IT Separation and Hamburg Certified Area set up

  
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 SALE AND PURCHASE AGREEMENT 

THIS AGREEMENT IS DATED 14 JUNE 2016 AND MADE BETWEEN: 
  

	(1)	NXP B.V., a private limited liability company incorporated under the Laws of the Netherlands, with corporate seat in Eindhoven, the Netherlands, and address at High Tech Campus 60, 5656 AG Eindhoven, (the
“Seller”); 

  

	(2)	BEIJING JIANGUANG ASSET MANAGEMENT CO., LTD., a private limited liability company, incorporated under the Laws of the People’s Republic of China, with corporate seat in Beijing, trade register number
110107016735242, address at Beijing International Club Office Tower, Room 302, No. 21, Jian Guo Men Wai Street, Beijing, People’s Republic of China (“JAC Capital”); and 

 

	(3)	WISE ROAD CAPITAL LTD, an exempted limited company incorporated in and under the Laws of the Cayman Islands, with registered office at c/o Offshore Incorporations (Cayman) Limited, Floor Willow House,
Cricket Square, PO Box 2804, Grand Cayman KY1-1112 Cayman Islands, and company registration number 299533 (“Wise Road” and hereinafter jointly with JAC Capital referred to as the
“Purchasers” and each a “Purchaser”). 

 BACKGROUND: 

 

	(A)	The Seller’s Group is active in (a) the business of researching, designing, developing, testing, manufacturing, commercializing, packaging, marketing, distributing, selling and servicing discrete
semiconductor devices, low complexity ICs and integrated passives through the following NXP business lines: (i) BL GA Discretes, (ii) BL PowerMOS and (iii) BL Logic, a representative list of such products being included in Schedule 18
to the IP Transfer and License Agreement (the “Products”) and (b) the business of designing, developing, building, assembling, installing and maintaining high speed and high quality semiconductor assembly and test equipment for
die placement and taping, integrated circuit testing, molding, wire bonding, vision and data handling, and of developing process recipes and software related to the use and maintenance of said equipment through ITEC (the businesses under
(a) and (b) hereafter the “Business”). For the avoidance of doubt, any business (e.g. in respect of the small PowerMOS eSwitch discretes) historically conducted by Freescale Semiconductor does not form part of the Business;

  

	(B)	Prior to Completion, the Seller will incorporate a private company under the Laws of the Netherlands under the name of “Nexperia HoldCo Netherlands B.V.” (the “Company”), and will hold
all the issued and outstanding shares of the Company (the “Shares”). The Business will be conducted through the Target Group Companies ultimately as of Completion; 

  
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	(C)	The Seller has initiated a sale of the Business through a controlled auction process and the Purchasers have been selected as the purchasers of the Business; 

 

	(D)	The Seller and JAC Capital entered into a non-disclosure agreement dated 8 February 2016 (the “Non-Disclosure
Agreement”), pursuant to which certain confidential information relating to the Business was made available to the members of the Purchasers’ Group and their Representatives; 

 

	(E)	The Seller gave the Purchasers and their Representatives (i) access to the Data Room, (ii) the opportunity to attend and participate in meetings with the Business’ management and relevant experts,
and (iii) the opportunity to ask and to receive answers to questions the Purchasers deemed necessary in relation to the Business and the Transaction. On that basis, the Purchasers and their Representatives have completed a comprehensive due
diligence investigation with respect to the Business; 

  

	(F)	At or prior to Completion, the Seller will procure that the Company will directly or indirectly hold all of the issued shares in the Dedicated Companies and other Target Group Companies (free of Encumbrances) and
the Seller will procure the transfer of the assets (free of Encumbrances) and liabilities attributable to the Business to the Target Group Companies in accordance with Schedule 10 (Disentanglement Plan) and the other provisions of this
agreement (the “Disentanglement”), save for those assets and liabilities not to be transferred to the Target Group Companies as set out in this agreement; 

 

	(G)	The Seller has been provided with copies of the Equity Commitment Letters, executed by the Fund Investors and the Purchasers; 

 

	(H)	The Seller has been provided with evidence that the Purchasers have taken reasonable steps to ensure that they will have sufficient funds available outside the People’s Republic of China to be readily able
to pay the Completion Amount at Completion; 

  

	(I)	The Parties have entered into the Escrow Agreement and the Purchasers have procured the deposit of the Deposit Amount into the Escrow Account; and 

 

	(J)	Now, in consideration of the foregoing, the Seller wishes to sell and transfer the Shares to the Purchasers in portions to be determined by the Purchasers, and the Purchasers wish to acquire the Shares from the
Seller, on the terms and subject to the conditions set out in this agreement (the “Transaction’’). 

  
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 THE PARTIES AGREE AS FOLLOWS: 
  

	1	DEFINITIONS AND INTERPRETATION 

 In this agreement, unless the context otherwise
requires, the definitions and provisions of Schedule 1 (Definitions and interpretation) apply throughout. 
  

	2	SALE, PURCHASE AND TRANSFER 

  

	2.1	Sale and purchase 

 On the terms and subject to the conditions of this agreement, the
Seller hereby sells the Shares to the Purchasers, and the Purchasers hereby purchase the Shares from the Seller. 
  

	2.2	Transfer 

 At Completion, the Seller shall transfer the Shares to the Purchasers free
from any Encumbrances and together with all rights and obligations attached to the Shares. 
  

	2.3	Directions of proportions and nomination other party 

  

	2.3.1	Subject to the Purchasers being jointly and severally liable (hoofdelijk aansprakelijk) for all obligations of the Purchasers under this agreement, the Purchasers shall direct the proportions in which they are to
receive and accept the Shares and the Shareholder Loan (if applicable) at Completion no later than fifteen (15) Business Days prior to the Completion Date. 

  

	2.3.2	The Purchasers shall be entitled to nominate, to the extent permitted by Law, at their own cost, by notice to the Seller delivered no later than fifteen (15) Business Days prior to the Completion Date, an entity
incorporated, and (directly or indirectly) wholly owned jointly, by the Purchasers to which entity all of the Shares will be transferred and the Shareholder Loan will be assigned at Completion (if applicable), provided that such nomination shall not
(i) adversely impact the satisfaction of the Completion Conditions set out in Clause 4.1, or (ii) derogate from the Purchasers’ obligations towards the Seller under this agreement. 

 

	2.4	Benefit and risk 

 Subject to Completion, the Transaction will be effective as of the
Effective Time and consequently, subject to the other provisions of this agreement, the benefit and risk of the Shares, together with the benefit and risk of the Target Group, will be for the account of the Purchasers as of the Effective Time. 

  
 3 / 52 

	2.5	Transaction structure 

  

	2.5.1	Within a reasonable period after the Signing Date and prior to the Completion Date, the Purchasers may propose to the Seller their desired structure for the Transaction, including the funding of the Target Group and the
Disentanglement partly through the provision of a shareholder loan by the Seller to the Company or through the Company to any other Target Group Company pursuant to Paragraph 2.3(b) of Schedule 10 (Disentanglement Plan). To the extent
that such proposal is reasonable and possible, the Seller and the Purchasers shall discuss in good faith further details of the proposal, including the amount of the shareholder loan and applicable interest rate (the principal amount and all accrued
interest of the shareholder loan up to and including the Completion Date, the “Shareholder Loan”). 

  

	2.5.2	The Shareholder Loan shall be acquired by the Purchasers at Completion at its nominal value against payment of the Purchase Price. In this case, the purchase price for the Shares will be reduced accordingly so that the
total consideration for the Shares and Shareholder Loan remains the Purchase Price. The Parties will in good faith discuss and negotiate any amendments to this agreement reasonably required in relation to the further implications of the use and
assignment of the Shareholder Loan (it being understood that any net Tax disadvantage arising as a result of any interest payments on the Shareholder Loan as referred to in Clause 2.5.1 shall be for the account of the Purchasers). 

 

	3	CONSIDERATION 

  

	3.1	Purchase Price 

 The purchase price for the Shares and the Shareholder Loan (if
applicable) (the “Purchase Price”) is an amount equal to the aggregate of the following amounts: 
  

	 	(a)	an amount of USD 2,750,000,000 (two billion seven hundred fifty million US dollars) (the “Bid Value”); plus 

  

	 	(b)	the Working Capital Adjustment; minus  

  

	 	(c)	the Net Debt Adjustment; plus 

  

	 	(d)	the Late Filing Amounts (if any). 

  
 4 /
52 

	3.2	Payments at Completion 

  

	3.2.1	At Completion, the Purchasers shall pay an estimate of the Purchase Price (the “Estimated Purchase Price”) equal to the aggregate of the following amounts in accordance with Clause 6.2.1(c) and
6.2.1(d): 

  

	 	(a)	the Bid Value; plus 

  

	 	(b)	the Estimated Working Capital Adjustment; minus 

  

	 	(c)	the Estimated Net Debt Adjustment; plus 

  

	 	(d)	the Late Filing Amounts (if any). 

  

	3.2.2	Both the Estimated Purchase Price and adjustments of the Estimated Purchase Price in accordance with Clause 7.5 are payable only in cash except as explicitly set out in this agreement. The Purchasers do not have any
right of set-off against, deduction from or suspension of payment of the Estimated Purchase Price or the Purchase Price except as explicitly set out in this agreement. 

 

	3.3	Allocation 

 The Purchase Price will be allocated in accordance with Schedule 21
(Allocation of the Purchase Price) whereby the Duff & Phelps report is to be finalized in consultation with the Parties, and in accordance with Paragraphs 1.2 and 2 of Schedule 21 (Allocation of the Purchase Price), as
soon as possible after Completion and will be final and binding on the Parties for the purposes of such allocation except in the event of manifest error. The Seller’s Group and the Purchasers’ Group shall adopt such allocation for
all purposes, including in respect of Tax. 
  

	4	COMPLETION CONDITIONS 

  

	4.1	Conditions 

 The obligation of the Seller and the Purchasers to effect Completion is
conditional upon satisfaction or, to the extent permitted by Law, waiver of the following conditions precedent (the “Completion Conditions” and each a “Completion Condition”): 

 

	 	(a)	all obligatory notifications and filings with the Competition Authorities in connection with the Transaction as listed in Schedule 6 (Merger Clearance Filings) (the “Merger Clearance
Filings”) must have been made and each Competition Authority, to the extent required by Law before Completion, has: 

  

	 	(i)	given the approvals, consents or clearances required under relevant applicable Law for the completion of the Transaction; 

  
 5 /
52 

	 	(ii)	rendered a decision that no approval, consent or clearance is required under relevant applicable Law for the completion of the Transaction; 

 

	 	(iii)	failed to render a decision within the applicable waiting period under relevant applicable Law and that failure is considered under such Law to be a grant of all requisite consents or clearances under such Law; or

  

	 	(iv)	referred the Transaction or any part of the Transaction to another Competition Authority in accordance with relevant applicable Law, and one of the requirements listed in items (i) through (iii) above has been
fulfilled in respect of such other Competition Authority; 

  

	 	(b)	if and to the extent the Dutch Works Council has a right of advice pursuant to article 25 of the Dutch Works Councils Act (Wet op de Ondernemingsraden; “WOR”) with respect to the Transaction, the
consultation procedure with the Dutch Works Council in accordance with article 25 WOR has been complied with in accordance with Clause 4.4; 

  

	 	(c)	if and to the extent there is a requirement under applicable Law to consult with the relevant works council(s) (Betriebsrat/räte) of the Seller’s Group in Germany in compliance with
sections 111 et seq. of the German Works Constitution Act (Betriebsverfassungsgesetz), the consultation procedure has been complied with and completed in accordance with Clause 4.4; and 

 

	 	(d)	the Parties shall have received from the Committee on Foreign Investment in the United States (“CFIUS”) notice that: 

 

	 	(i)	review of the Transaction, including any subsequent investigation, under Section 721 of the U.S. Defense Production Act of 1950, as amended (“Section 721”), has been concluded and CFIUS has
determined that there are no unresolved national security concerns with respect to the Transaction; 

  

	 	(ii)	CFIUS has concluded that the Transaction is not a covered transaction and not subject to review under applicable Law; or 

  
 6 / 52 

	 	(iii)	CFIUS has sent a report to the President of the United States requesting the President’s decision on the CFIUS notice submitted by the Parties and: 

 

	 	(A)	the period under Section 721, during which the President may announce his decision to take action to suspend, prohibit or place any limitations on the transaction, shall have expired without any such action being
announced or taken; or 

  

	 	(B)	the President or his designee shall have announced (or otherwise communicated) a decision not to take any action to suspend, prohibit or place any limitations on the Transaction, 

(in each case, the “CFIUS Approval”). 
  

	4.2	Responsibility for satisfaction 

 Without prejudice to Clauses 4.3, 4.4 and 4.5, the
Seller and the Purchasers shall each use their respective reasonable efforts to ensure satisfaction of, and compliance with, all Completion Conditions as soon as reasonably possible, it being understood that: 

 

	 	(a)	the Purchasers have the primary responsibility for the satisfaction of, and compliance with, the Completion Conditions set out in Clauses 4.1(a) and 4.1(d); and 

 

	 	(b)	the Seller has the primary responsibility for the satisfaction of, and compliance with, the Completion Conditions set out in Clauses 4.1(b), and 4.1(c). 

 

	4.3	Merger Clearance Filings 

  

	4.3.1	The Purchasers shall: 

  

	 	(a)	 as soon as practicable after the Signing Date, prepare and file with the Competition Authorities the Merger
Clearance Filings, or a draft thereof, for jurisdictions where submission of a draft prior to formal notification is appropriate and as soon as practicable thereafter the Merger Clearance Filing, necessary to satisfy the Completion Condition set out
in Clause 4.1(a) provided that (i) for Singapore, this condition shall be satisfied by the Purchasers entering into informal discussions with the local Competition Authorities to discuss the possible Merger Clearance Filing there, and
(ii) the Seller and its legal counsel have 

  
 7 / 52 

	 	
reviewed and approved any Merger Clearance Filings or draft Merger Filings prior to such filing, whereby the Seller and its legal counsel shall respond to the draft or final Merger Clearance
Filings as soon as reasonably possible and shall not otherwise unreasonably withhold or delay approval; and 

  

	 	(b)	supply as promptly as practicable any additional information and documentation that may be requested by any Competition Authority in connection with the Merger Clearance Filings, provided that the Seller and its legal
counsel have reviewed and approved such information or documentation prior to its submission, which approval may not be unreasonably withheld or delayed. 

  

	4.3.2	The Seller shall use its commercially reasonable efforts to procure that the Purchasers swiftly receive all information and documentation available within the Seller’s Group in respect of the Business that is
reasonably necessary to make or supplement any Merger Clearance Filings. However, the Purchasers are responsible for drafting and submitting all Merger Clearance Filings. 

 

	4.3.3	The Purchasers shall provide the Seller and its legal counsel with drafts of all written filings and other communication intended to be submitted to any Competition Authority in respect of any Merger Clearance Filings,
provide the Seller and its legal counsel with a reasonable opportunity to comment on such filings and communication, not submit such filings or communication without the prior written approval of the Seller, such approval not to be unreasonably
withheld or delayed, and provide the Seller and its legal counsel with final copies of all such filings and communication. The Seller and its legal counsel may (to the extent permitted by Law and any Competition Authority) also, but are not obliged
to, participate in all meetings, phone calls, correspondence and discussions with any Competition Authority in connection with a Merger Clearance Filing. Business secrets and other confidential information in respect of any Party or the Target Group
Companies may be redacted by the Parties (and/or only provided to a Party’s legal counsel on a privileged basis) as long as the Seller and the Purchasers act reasonably in identifying such material for redaction. To the extent applicable merger
control regimes provide for such possibility, the Seller and its legal counsel may, but are not obliged to, make confidentiality claims with respect to any of the approvals, consents or clearances as referred to in Clause 4.1(a), to the extent
relating to the Seller’s Group, the Business or the market definitions used. 

  

	4.3.4	 The Purchasers shall bear all filing fees and other similar costs incurred by them in relation to any Merger
Clearance Filings, and shall also bear all costs, penalties and fines (including penalties and fines imposed on any member of the Seller’s Group) resulting from not making (timely or correct) Merger

  
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Clearance Filings in any jurisdiction where a Merger Clearance Filing should have taken place, unless failure to make a (timely or correct) Merger Clearance Filing is the result of a breach of an
obligation of the Seller set out in Clause 4.3.2 or Clause 4.3.3. 

  

	4.3.5	The Purchasers shall, and shall procure that their Affiliates will, refrain from carrying out any action (including making or agreeing to make any acquisition or investment) or omitting anything that could, directly or
indirectly, cause delay, hinder, impede or prejudice satisfaction of the Completion Condition set out in Clause 4.1(a). 

  

	4.3.6	The Purchasers shall, and shall cause each member of the Purchasers’ Group to, take any action reasonably required in order to obtain as promptly as practicable clearance for the Transaction from the Competition
Authorities pursuant to any Merger Clearance Filings, including by agreeing to perform or accept any disposal of assets or businesses of the Purchasers’ Group and to perform any behavioural remedies or conditions that may be necessary to obtain
clearance from the Competition Authorities (the “Merger Clearance Remedies”), whereby the Purchasers shall be entitled to engage in discussions and negotiations with any and all relevant Competition on the nature and scope of such
measures, to ensure that any Merger Clearance Remedies agreed upon are the narrowest possible measures with the least possible impact on the Business. For the avoidance of doubt, any such disposal of assets or businesses or behavioural remedies will
have no impact on the Purchase Price and any costs related to any disposal of assets or businesses or to any such other remedies, or both, will be for the Purchasers’ sole account. The Seller will provide reasonable cooperation in respect of
all Merger Clearance Remedies in relation to relevant access, disentanglement actions and other transitional service support actions. 

  

	4.4	Works Council 

  

	4.4.1	The Completion Condition set out in Clause 4.1(b) will be deemed to have been complied with: 

  

	 	(a)	upon receipt by the Seller or the relevant member of the Seller’s Group from the Dutch Works Council of: 

  

	 	(i)	an unconditional advice permitting the Parties to pursue the Transaction; 

  

	 	(ii)	an advice regarding the Transaction with conditions reasonably acceptable to the Seller and, to the extent those conditions may have a material impact on (the business of) the Target Group or any Target Group Company
after Completion, reasonably acceptable to the Purchasers; or 

  
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	 	(iii)	an unconditional and irrevocable waiver in writing of the Dutch Works Council’s right to render advice with respect to the Transaction, 

and the Seller or the relevant member of the Seller’s Group having adopted a resolution in respect of the Transaction that is compliant
with the Dutch Works Council’s advice; or 
  

	 	(b)	to the extent none of the situations described under Clause 4.4.1(a) occur, upon the Seller or the relevant member of the Seller’s Group adopting a resolution in respect of the Transaction that deviates from the
Dutch Works Council’s advice, and: 

  

	 	(i)	the subsequent receipt by the Seller or the relevant member of the Seller’s Group from the Dutch Works Council of an unconditional and irrevocable waiver in writing of: 

 

	 	(A)	the applicable waiting period in accordance with article 25(6) WOR; and 

  

	 	(B)	its right to initiate legal proceedings pursuant to article 26 WOR; or 

  

	 	(ii)	expiration of the applicable waiting period pursuant to article 25(6) WOR without the Dutch Works Council having initiated legal proceedings pursuant to article 26 WOR; or 

 

	 	(iii)	if the Dutch Works Council has initiated legal proceedings pursuant to article 26 WOR to appeal against the resolution referred to in Clause 4.4.1(b), the Enterprise Chamber of the Amsterdam Court of Appeal
(Ondernemingskamer Hof Amsterdam) has dismissed the appeal of the Dutch Works Council to the effect that no measures obstructing the Transaction are imposed and the dismissal of the Enterprise Chamber has immediate effect (uitvoerbaar bij
voorraad). 

  

	4.4.2	The Completion Condition set out in Clause 4.1(c) will be deemed to have been complied with upon: 

  

	 	(a)	the conclusion of a reconciliation agreement with the relevant German works council(s) (Betriebsrat/räte) or, in cases this condition (a) is not met, 

  
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	 	(b)	final failure to conclude a reconciliation agreement before an arbitration board (Einigungsstelle). 

  

	4.4.3	The Seller shall as soon as practicable and in any event no later than fifteen (15) Business Days after the Signing Date, provide the Purchasers and their legal counsel with the drafts of the request for advice and
other communication intended to be submitted to the relevant works council, provide the Purchasers and their legal counsel with a reasonable opportunity to comment on such drafts of the request for advice and other communication, take into account
any reasonable comments from the Purchasers, all with the aim to submit the request(s) for advice as soon as reasonably possible, and provide the Purchasers and their legal counsel with final copies of the final request for advice and other
communication submitted to the relevant works council. 

  

	4.4.4	The Purchasers shall use their commercially reasonable efforts to procure that the Seller receives all information and documentation available within the Purchasers’ Group that is reasonably necessary to make or
supplement the request for advice. 

  

	4.4.5	The Seller shall inform the Purchasers on at least a bi-weekly basis of the progress of the works council consultation procedure. 

 

	4.4.6	The Seller and the Purchasers shall use their respective reasonable efforts to: 

  

	 	(a)	take any action as may reasonably be required, including negotiating in good faith any changes to this agreement (bearing in mind the intent and purpose of the terms and conditions set forth in this agreement), that is
necessary to satisfy the Completion Condition set out in Clauses 4.1(b) and 4.1(c); 

  

	 	(b)	promptly cooperate with and as promptly as practicable provide all necessary information and assistance reasonably required by the relevant works council; and 

 

	 	(c)	discuss in good faith to expeditiously resolve any relevant issues raised by the relevant works council during the consultation procedure. 

 

	4.5	CFIUS 

  

	4.5.1	As further set out in this Clause 4.5, the Seller and the Purchasers shall work cooperatively to obtain the CFIUS Approval as promptly as practicable. The Seller and Purchasers shall provide to each other in advance,
any analyses, presentations, responses, information, opinions, arguments, or proposals to be made or submitted to CFIUS by or on behalf of any Party in connection with, and shall consult with each other on strategic matters related to, obtaining the
CFIUS Approval. 

  
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	4.5.2	The Seller and the Purchasers shall, as soon as practicable after the Signing Date submit a draft joint voluntary notice to CFIUS (including, for the avoidance of doubt, the personal identifier information), as
contemplated under 31 C.F.R. §800.401(f), with regard to the Transaction and provide any other appropriate information pursuant to the CFIUS regulations at 31 C.F.R. Part 800. 

 

	4.5.3	The Seller and the Purchasers shall also submit a final joint voluntary notice to CFIUS with regard to this agreement and other related information pursuant to Section 721 (the “CFIUS Notice”),
reasonably promptly upon learning from CFIUS that the draft joint voluntary notice, as supplemented with any additional information or documents as CFIUS reasonably requires, is complete. 

 

	4.5.4	Each Party will cooperate in the preparation and submission of additional information requested by CFIUS, and will promptly notify the other Parties upon receipt of: 

 

	 	(a)	any comments or questions from CFIUS or any other Governmental Authority in connection with the CFIUS Notice or other filings with CFIUS; and 

 

	 	(b)	any request by CFIUS or any other Governmental Authority for amendments or supplements to the CFIUS Notice or other filings with CFIUS or any other information in connection with obtaining the CFIUS Approval.

  

	4.5.5	The Seller and the Purchasers shall make every reasonable effort to respond to any request for information from CFIUS in the time frame set forth in 31 C.F.R. Part 800. 

 

	4.5.6	For purposes of satisfying the Completion Condition set out in Clause 4.1(d), the Purchasers and the Seller shall, and shall cause the Purchasers’ Group and the Seller’s Group respectively to, use reasonable
best efforts to take all such actions within their respective powers as may reasonably be necessary to obtain the CFIUS Approval, including proposing, negotiating, committing to and effecting, by mitigation agreement, letter of assurance, national
security agreement, or other form of agreement customarily used by CFIUS, any measures that CFIUS requires in accordance with Section 721(l) (the “Mitigation Measures”), but in all cases only to the extent relating to the equity
interests or other securities of the Target Group and any other assets of the Target Group as are subject to CFIUS jurisdiction (the “U.S. Business”). 

  
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	4.5.7	For purposes of Clause 4.5.6 only, the terms “reasonable best efforts to take all such actions as are reasonably necessary to obtain CFIUS Approval” shall be interpreted to: 

 

	 	(a)	include entering into hold separate or other passivity arrangements, the termination, assignment or modification of contracts or business relationships, the acceptance of restrictions on business operations, the
acceptance of requirements with respect to information sharing, and the Purchasers’ establishment of an irrevocable trust in which the U.S. Business will be held for the benefit of the Purchasers and appointment of independent trustees who are
citizens and residents of the United States of America and who will exercise all voting interests with respect to the U.S. Business, subject to the Purchasers enjoying reasonable investor protections under the trust; and 

 

	 	(b)	not include any commitment or obligation of Purchasers to divest the U.S. Business. 

  

	4.5.8	With respect to any Mitigation Measures, the Parties shall be entitled to a reasonable period of time to engage in discussions and negotiations with CFIUS and between themselves on the nature and scope of such measures,
to ensure that any Mitigation Measures agreed upon are the narrowest possible measures with the least possible impact on the Business and the U.S. Business, so long as CFIUS Approval remains obtainable prior to the date set out in Clause 4.8.1.

  

	4.5.9	To the extent that the Mitigation Measures would prevent the Seller from fulfilling its obligations related to the Disentanglement or under the Ancillary Agreements, the Parties shall use their reasonable efforts to
negotiate alternative arrangements, including costs relating to such alternative arrangements. 

  

	4.6	Cooperation to complete the Transaction 

 Subject to Clauses 4.3.6 and 4.5.6, if any
administrative or judicial action or proceeding is instituted (or threatened to be instituted) by a Governmental Authority or any other Person challenging (any part of) the Transaction prior to Completion, each Party shall cooperate in all respects
with the other Party and use its commercially reasonable efforts to defend, contest and resist any such action or proceeding and to have vacated, lifted, reversed or overturned any Governmental Order, whether temporary, preliminary or permanent,
that is in effect and that reasonably prohibits, prevents or restricts the consummation of the Transaction, taking into account the reasonable commercial interests of the Parties, the Target Group, and the Business. 

  
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	4.7	Satisfaction and waiver of Completion Conditions 

  

	4.7.1	A Party shall inform the other Party in writing within five (5) Business Days of becoming aware of: 

  

	 	(a)	the satisfaction of any Completion Condition, or 

  

	 	(b)	any circumstance that will or is likely to result in a failure to satisfy any Completion Condition. 

  

	4.7.2	The Completion Conditions set out in Clauses 4.1(a), 4.1(c) and 4.1(d) may be waived only by written agreement between the Parties and only to the extent permitted by Law. The Completion Condition set out in Clauses
4.1(b) may be waived only by the Seller in writing to the Purchasers. 

  

	4.8	Long stop date 

  

	4.8.1	If any Completion Condition set out in Clause 4.1(a) or 4.1(d) is not satisfied or waived ultimately on 31 March 2017, the Seller may, at its sole discretion, in addition to and without prejudice to all other
rights or remedies available under this agreement, terminate this agreement by notice to the Purchasers, provided that the Seller may not give such termination notice if it is in material default of its obligations set out in Clause 4.

  

	4.8.2	If the Completion Conditions are not satisfied or waived ultimately on 30 April 2017, either Party may, at its sole discretion, in addition to and without prejudice to all other rights or remedies available under
this agreement, terminate this agreement by notice to the other Parties, provided that a Party may not give such termination notice if it is in material default of its obligations set out in Clause 4. 

 

	4.8.3	Clauses 5.6, 15, 16 and 17 survive any termination of this agreement. 

  

	5	PRE-COMPLETION UNDERTAKINGS 

  

	5.1	Operation of the Business prior to Completion 

  

	5.1.1	The Seller shall use its commercially reasonable efforts to procure that between Signing and Completion the relevant members of the Seller’s Group carry on the Business as a going concern in the ordinary course of
business, consistent with past practice. For the avoidance of doubt, this includes in relation to the Business’ inventory and the timely making of capital expenditures in the ordinary course of business and materially in line with the relevant
capital expenditure programme as prepared by the Business. 

  
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	5.1.2	Without prejudice to the generality of Clause 5.1.1, except (i) in so far as contemplated in this agreement, (ii) as may be reasonably necessary in connection with the Disentanglement or the Transaction, as
set out in the Disclosed Information to the extent disclosed as set out in Clause 9.1.3, (iii) as may be necessary to comply with applicable Law, or (iv) as agreed or consented to by the Purchasers (such consent not to be unreasonably withheld
or delayed), the Seller shall procure that between Signing and Completion the relevant member of the Seller’s Group will not take any action or decision in respect of the Business or any Target Group Company to: 

 

	 	(a)	create, allot or issue, or allow to be created, allotted or issued, any share capital of any Target Group Company or issue any instruments to a Person other than a Target Group Company that give the right to obtain
shares in the relevant Target Group Company; 

  

	 	(b)	acquire or agree to acquire any share(s) or other interest, or make any capital contributions to or investments in any Person (other than a Target Group Company); 

 

	 	(c)	make any loan other than in the ordinary course of business to any Person (other than a Target Group Company); 

  

	 	(d)	incur any borrowings from Third Parties in excess of USD 2,500,000 (two million five hundred thousand US dollars) (or its equivalent in any other currency) other than in the ordinary course of business;

  

	 	(e)	enter into agreements in which the Target Group Companies provide a surety or undertake joint and several liability, or provide security for the debt of any Third Party or any member of the Seller’s Group
(excluding the Target Group Companies); 

  

	 	(f)	repay, redeem or repurchase, or allow to be repaid, redeemed or repurchased, any share capital of any Target Group Company to a Person other than the Target Group Companies; 

 

	 	(g)	create any Encumbrance (other than Permitted Encumbrances) over any material part of the Business; 

  

	 	(h)	enter into any Business Contracts outside the ordinary course of business; 

  

	 	(i)	terminate or amend any Business Contracts which, if terminated or amended, would have a material adverse effect on the Business; 

  
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	 	(j)	sell, transfer, let, lease, encumber, or license any material part of the Business Assets or the Transferred Properties other than in the ordinary course of business; 

 

	 	(k)	sell, transfer, let, license (other than in the ordinary course of business), lease or encumber the Business Intellectual Property; 

  

	 	(l)	materially amend the aggregate compensation (wages, salary, bonuses, incentives and any other form of compensation, taken as a whole) of the Employees except to the extent resulting from any change of employment terms
generally applicable to the relevant employees of the Seller’s Group (for example, any increases in accordance with applicable collective labour agreements or any periodic or other increases in the context of the existing remuneration policies)
in which event the Seller shall inform the Purchasers of such material amendment and the impact thereof on an annual basis; 

  

	 	(m)	make any material changes to employment terms and conditions (including compensation, fringe benefits or any other employment benefit plan or arrangement) of any Key Employee; 

 

	 	(n)	set up or materially amend any of the Pension Plans or set up or award material pension rights other than under the Pension Plans; 

  

	 	(o)	institute or settle any material legal proceedings (other than debt collection in the ordinary course of business) or any legal proceedings with a claimed amount in excess of USD 1,000,000 (one million US dollars) (or
its equivalent in any other currency); or 

  

	 	(p)	authorise or enter into any agreement or commitment with respect to any of the actions set out under (a) through (o) above. 

  

	5.1.3	The Purchasers’ response to a request for consent of any matter set forth in Clause 5.1.2 shall be provided by e-mail to the relevant Representative of the Seller within five
(5) Business Days after the time of sending of the request. In the event such response is not received within such five (5) Business Days, consent will be deemed to have been given by the Purchasers. 

 

	5.2	Excused conduct 

  

	5.2.1	The Purchasers shall not invoke the provisions of Clause 5.1 against the Seller or withhold or delay its consent if doing so can reasonably be foreseen to materially adversely affect the Business, and the Seller shall
request the Purchasers’ consent for any matter set forth in Clause 5.1.2 as much as reasonably possible in advance. 

  
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	5.2.2	In applying and enforcing Clause 5.1, the Seller and the Purchasers shall act vis-à-vis each other in accordance with the principles
of reasonableness and fairness giving due consideration to all relevant circumstances. 

  

	5.2.3	If circumstances require immediate action from the Seller or any member of the Seller’s Group and the Seller is not reasonably able to timely request the consent of the Purchasers or await a response from the
Purchasers to such request, no such consent will be required, provided that the Seller informs the Purchasers of any such situation as soon as reasonably practicable thereafter. 

 

	5.3	Finalisation of Ancillary Agreements and Schedules 

  

	5.3.1	Where any of the Ancillary Agreements, schedules or annexes to the Ancillary Agreements or any Schedule is not yet in agreed form at the Signing Date, the Seller and the Purchasers shall use their respective reasonable
and good faith efforts to finalise the same as soon as practicable after the Signing Date in accordance with the terms and principles (if any) of such Ancillary Agreement, schedule or annex to the Ancillary Agreement or Schedule established at or
prior to the Signing Date, and in any event prior to its execution (at Completion or thereafter). 

  

	5.3.2	The Seller and the Purchasers shall each use their respective reasonable efforts to mutually agree on documentation which describes the current practice with respect to the services as provided by the Target Group prior
to Completion with respect to ITEC Equipment in the field of (i) research and development services, (ii) equipment supply, and (iii) maintenance services. 

 

	5.4	Disentanglement 

  

	5.4.1	The Seller shall procure that immediately, or as soon as reasonably possible after the Signing Date, and ultimately at Completion, all necessary actions are taken in order to effect the Disentanglement as set forth in
Schedule 10 (Disentanglement Plan). To the extent that any actions are not completed on the Completion Date, the Seller and the Purchasers shall and shall procure that the relevant members of the Seller’s Group and the
Purchasers’ Group (for the avoidance of doubt including the Target Group Companies) respectively, shall undertake all steps necessary to complete these actions as soon as reasonably possible after Completion, it being understood that the Seller
is primarily responsible for completing the Disentanglement. The provisions of this Clause 5.4 are also for the benefit of, and are enforceable by, each relevant member of the Target Group, as third-party stipulations (onherroepelijk
derdenbeding). 

  

	5.4.2	 In order to facilitate and monitor the expedient implementation of the Disentanglement as set forth in
Schedule 10 (Disentanglement Plan), the Parties shall within one week after the Signing Date nominate a 

  
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Disentanglement taskforce consisting of senior management of the Purchasers, the Business and the Seller (and where useful their respective Representatives). The Disentanglement taskforce will
confer on a regular basis and stay in place until the completion of the Disentanglement. 

  

	5.5	Overseas Investment Filings 

  

	5.5.1	The Purchasers shall as soon as practicable after the Signing Date, make the necessary filings with the relevant Governmental Authorities of the People’s Republic of China, including filings with the National
Development and Reform Commission of the People’s Republic of China (“NDRC”), the Ministry of Commerce of the People’s Republic of China (“MOFCOM”) and as soon as practicable thereafter, the State
Administration of Foreign Exchange of the People’s Republic of China (“SAFE”) (together, the “Overseas Investment Filings”). 

 

	5.5.2	The Purchasers shall procure that the Overseas Investment Filing and any other applicable approvals from, or registrations with, the Governmental Authorities of the People’s Republic of China in relation to the
payment of the Completion Amount are completed as soon as possible after Signing, but in any event prior to the last of the Completion Conditions set out in Clause 4.1 has been satisfied or waived.  

 

	5.5.3	The Purchasers shall: 

  

	 	(a)	update the Seller on a regular basis, and at least bi-weekly, on the status of the Overseas Investment Filings; 

 

	 	(b)	provide the Seller (and/or its legal counsel on a privileged basis) with drafts of all formal filings, notices, applications and other material written communications submitted in connection with the Overseas Investment
Filings; and 

  

	 	(c)	provide the Seller with copies of the final confirmation letters and certificates received from NDRC, MOFCOM and SAFE upon receipt thereof. 

 

	5.6	Deposit Amount 

 Deposit Amount 

 

	5.6.1	Immediately prior to Signing, the Purchasers have procured the deposit of an amount of USD 200,000,000 (two hundred million US dollars) (the “Deposit Amount”) in cash into the Escrow Account as a
security deposit against: 

  

	 	(a)	satisfaction of the liabilities of the Purchasers under Clause 10.16, including the Default Payment Fee payable by the Purchasers to the Seller under this agreement; and 

  
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	 	(b)	payment of the Estimated Purchase Price at Completion of the Transaction, 

 and the Parties have
for this purpose entered into an escrow agreement with the Escrow Agent, which is attached hereto as Schedule 19 (Escrow Agreement) (the “Escrow Agreement”). 

Escrow Fee and interest 
  

	5.6.2	Any escrow fees related to the opening and keeping in place of the Escrow Account and payments to be made from the Escrow Account, shall be borne by the Purchasers. Any interest accrued on the Deposit Amount will be for
the Purchasers. 

  

	5.6.3	Subject to Clause 10.16.3, at Completion any Deposit Amount remaining in the Escrow Account may be used by the Purchasers for the purpose of payment of the Estimated Purchase Price in accordance with Clause 6.2.1(c).

  

	5.6.4	The Deposit Amount will, to the extent not paid out in accordance with the terms of this agreement, be held in the Escrow Account until fifteen (15) Business Days after the date of termination of this agreement for
whatever reason. Any Deposit Amount remaining in the Escrow Account as at the date fifteen (15) Business Days after the date of termination of this agreement shall be returned to the Purchasers pursuant to the Escrow Agreement, unless the
Seller notifies the Purchasers in writing within fifteen (15) Business Days after the date of the termination of this agreement that it claims payment of an amount pursuant to Clause 5.6.1(a), in which event only the amount of the Deposit
Amount in excess of such claimed amount will be returned to the Purchasers. 

  

	5.7	Late filing 

  

	5.7.1	In the event the Purchasers fail to submit (i) any of the Merger Clearance Filings pursuant to Clause 4.3.1(a), or (ii) the draft joint voluntary notice to CFIUS pursuant to Clause 4.5.2: 

 

	 	(a)	within twenty-five (25) Business Days after the Signing Date, the Purchase Price will be increased with USD 5,000,000 (five million US dollars); and 

  
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	 	(b)	within thirty-five (35) Business Days after the Signing Date, the Purchase Price will be increased with an additional USD 5,000,000 (five million US dollars), 

each a “Late Filing Amount” and any of them together “Late Filing Amounts”. It is agreed that the Late
Filing Amounts shall therefore not be more than USD 10,000,000 (ten million US dollars). 
  

	5.8	Intragroup transactions 

  

	5.8.1	Except as expressly set out in this agreement or in any other agreement, document or instrument entered into in connection with the Transaction or the Disentanglement, or otherwise agreed in writing between the Seller
and the Purchasers, all existing agreements and arrangements prior to the Effective Time between: 

  

	 	(a)	one or more members of the Seller’s Group (excluding the Target Group Companies) on the one hand and one or more Target Group Companies on the other hand, shall terminate and no longer be effective as of the
Effective Time, except for the Local Business Transfer Agreements and the Ancillary Agreements; and 

  

	 	(b)	one or more members of the Seller’s Group (excluding the Target Group Companies) on the one hand and Third Parties on the other hand, relating to services provided to the Business
(so-called “umbrella-agreements”) shall no longer be effective with respect to the Business as of the Effective Time, 

provided that such termination does not affect, waive, or release any party from, any rights or obligations accrued under such agreements up to
and including the Effective Time. 
  

	5.8.2	Except for the Shareholder Loan and the Promissory Note, prior to or at the Effective Time, the Seller shall procure that all Intragroup Receivables and Intragroup Payables will be settled as much as possible between
the relevant members of the Seller’s Group (excluding the Target Group Companies) and the relevant Target Group Companies. 

  

	5.8.3	Each Party shall procure that any Intragroup Receivables and Intragroup Payables owed between the Seller’s Group (excluding the Target Group Companies) on the one hand and the Target Group Companies on the other
hand, that remain outstanding at the Effective Time, will be settled in cash in accordance with the applicable payment terms set forth in the relevant agreement that is applicable between such entities or, if there are no such payment terms, within
sixty (60) days after the Completion Date. The payments to be made pursuant to this Clause 5.8.3 may not be set-off against any other claims or payments. 

  
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	5.9	Estimated statements 

  

	5.9.1	No later than ten (10) Business Days prior to the date set for Completion pursuant to Clause 6.1, the Seller shall deliver to the Purchasers the Estimated Working Capital Statement and the Estimated Net Debt
Statement. The Seller shall deliver to the Purchasers within fifteen (15) Business Days after the end of each reporting quarter of the Seller starting from 30 September 2016, the Seller’s good faith drafts of the Estimated Working
Capital Statement and the Estimated Net Debt Statement (under the assumption, for the purposes of such draft statements, that the Completion Date will be on the first (1st) Business Day of the
reporting month during which the draft statements are prepared). 

  

	5.9.2	The Seller shall draw up the Estimated Working Capital Statement and the Estimated Net Debt Statement in good faith in the form set out in Schedule 3 (Completion Statements) and in accordance with the
policies and principles set out in Clause 7.2. 

  

	5.9.3	Any amounts included in the determination of the Estimated Working Capital Statement or Estimated Net Debt Statement in currencies other than US dollar will be translated into US dollar based on the most recent monthly
exchange rates used by the Seller for the consolidation of its monthly financial statements. 

  

	5.9.4	For purposes of calculation of the Estimated Purchase Price, the Estimated Working Capital Statement and the Estimated Net Debt Statement as delivered by the Seller are final and binding on the Parties.

  

	5.10	Funding of the Estimated Purchase Price 

 The Purchasers shall not, without the
Seller’s written consent, such consent not to be unreasonably withheld or delayed with the understanding that the Seller may withhold its consent if any termination or amendment adversely affects the amount or quality of the funding
commitments, terminate or amend the terms of the Equity Commitment Letters or take any action which should reasonably be expected to make the timely availability of the Estimated Purchase Price uncertain, including any changes to, or the inclusion
of, any additional conditions precedent to, the utilisation of the funding at Completion. 
  

	5.11	Access to information 

  

	5.11.1	 Between the Signing Date and the earlier of (i) Completion or (ii) if applicable an earlier termination
of this agreement, the Seller shall, upon reasonable 

  
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advance notice provide the Purchasers and its Representatives reasonable access during normal business hours to the administration of the Business, the Business premises, and the Key Employees.
This access includes access to the historical financial data of the Business. To the extent reasonably requested by the Purchasers in view of the requests made by the Purchasers’ banks in relation to the provision of an acquisition facility to
the Purchasers, the Seller shall use reasonable efforts to support the Purchasers by timely gathering the relevant historical financial data with a view of preparing unaudited pro forma Business financials for the period 2013-2015, for the risk,
cost and account of the Purchasers. 

  

	5.11.2	The Seller may refuse access on the grounds that access: 

  

	 	(a)	would be contrary to any Law; or 

  

	 	(b)	would cause undue material disruption to the business activities of the Seller or its management. 

  

	5.11.3	The Purchasers shall only seek access in an efficient and timely manner without undue or unnecessary interference or interruption. 

  

	5.12	Execution of the Notary Letter 

 On or prior to the date falling one (1) Business
Day prior to the Completion Date, the Purchasers and the Seller shall sign the Notary Letter. 
  

	5.13	Termination of non-disclosure agreements with other bidders 

Immediately following the Signing Date, the Seller shall make a request to the other bidders in the controlled auction process for the sale of
the Business to return back or destroy any and all information provided to such bidders in relation to the Business and the controlled auction process. 
  

	6	COMPLETION 

  

	6.1	Completion date and place 

 Subject to the satisfaction (and where applicable continued
satisfaction) or waiver of the Completion Conditions, Completion will take place at the offices of Houthoff Buruma Coöperatief U.A., Gustav Mahlerplein 50, (1082 MA) Amsterdam, the Netherlands, commencing at 11:00 AM CET on the first (1st)
Business Day of the Seller’s monthly reporting period that is at least seven (7) Business Days plus such number of Business Days as the last of the filings referred to in Clauses 4.3.1(a) and 4.5.2 has been made earlier than thirty-five
(35) Business Days after Signing (such additional number of Business Days never to exceed twenty (20)) after the last of the Completion Conditions set out 

  
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in Clause 4.1 has been satisfied or waived, or at such other date, time or location as may be agreed in writing by the Seller and the Purchasers, provided that Completion may not take place
(i) earlier than 1 January 2017 or (ii) in the third (3rd) reporting month of the Seller in 2017. 

  

	6.2	Completion actions 

  

	6.2.1	At Completion, the Seller and the Purchasers (as applicable) shall procure that the following actions are taken in the following sequence: 

 

	 	(a)	the Seller shall deliver to the Purchasers written evidence that any and all (i) Encumbrances over the Shares and the shares in the share capital of the Target Group Companies and any of the Transferred Properties,
and (ii) right of pledge on the Business Intellectual Property have been finally and unconditionally released; 

  

	 	(b)	the Seller shall deliver to the Purchasers written evidence that it has completed the Disentanglement actions set out in Schedule 4 (Disentanglement Completion Actions); 

 

	 	(c)	the Parties will jointly procure the transfer of the remaining Deposit Amount (if any) in the Escrow Account (minus any fees payable to the Escrow Agent) to the Notary Account, with reference to “Project
Orange”, which amount must be credited to the Notary Account (without any deduction whatsoever, whether for bank transmission charges or otherwise) no later than 11:00 AM CET on the Completion Date and with value on the Completion Date;

  

	 	(d)	the Purchasers shall transfer, or procure the transfer of, an amount equal to (i) the Estimated Purchase Price plus (ii) any amounts owed by the Purchasers pursuant to Clause 16.14.5 of this agreement
or pursuant to Paragraph 10 of Schedule 9 (Tax), (such aggregate amount the “Completion Amount”) minus the remaining Deposit Amount transferred to the Notary Account pursuant to Clause 6.2.1(c) to the Notary
Account, with reference to “Project Orange”, which amount must be credited to the Notary Account (without any deduction whatsoever, whether for bank transmission charges or otherwise) no later than 11:00 AM CET on the Completion Date and
with value on the Completion Date. The Completion Amount shall be held by the Notary in accordance with the Notary Letter; 

  

	 	(e)	the Notary will confirm that an amount equal to the Completion Amount has been received in the Notary Account; 

  
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	 	(f)	the Seller (or a member of the Seller’s Group, as applicable) and the relevant Target Group Company shall deliver executed copies of, or execute, the following Ancillary Agreements: 

 

	 	(i)	the IP Transfer and License Agreement; 

  

	 	(ii)	the IP Sale and Purchase Agreement; 

  

	 	(iii)	the Trademarks And Domain Names Sale Agreement; 

  

	 	(iv)	the Manufacturing Services Agreement; 

  

	 	(v)	the ITEC Equipment Support Services Agreement; and 

  

	 	(vi)	the Transitional Services Agreement. 

  

	 	(g)	the Company delivers to the Notary the original and up-to-date shareholders register of the Company; 

 

	 	(h)	if applicable, the Seller shall assign to the Purchasers the Shareholder Loan, the Purchasers shall accept this assignment and the Seller and the Purchasers shall procure that the Company acknowledges this assignment,
the foregoing to be effected by execution of a deed of assignment by the Seller, the Purchasers and the Company; 

  

	 	(i)	the Seller, the Purchasers and the Company each deliver to the Notary an executed and, to the extent required by the Notary, apostilled, power of attorney to execute the Deed of Transfer; 

 

	 	(j)	the Seller, the Purchasers and the Company deliver to the Notary a written confirmation in the form reasonably requested by the Notary, instructing the Notary to transfer the Shares to the Purchasers; 

 

	 	(k)	the Seller transfers to the Purchasers the Shares, the Purchasers accept the transfer, and the Company acknowledges the transfer, the foregoing to be effected by execution of the Deed of Transfer by the Seller, the
Purchasers and the Company before the Notary; and 

  

	 	(l)	the Notary will give wire instruction for the transfer of the Completion Amount on the Completion Date to the Seller, in accordance with the Notary Letter. 

  
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	6.3	Procurement of sale and transfer of Hamburg Site 

  

	6.3.1	The Seller shall procure that immediately after the transfer of the Shares but before completion of Clause 6.2.1(l), NXP Semiconductors Germany GmbH (as the seller of the Hamburg Site) shall sell and transfer the
Hamburg Site to the Target Group Company in Germany (as the purchaser of the Hamburg Site), which is to be effected by NXP Semiconductors Germany GmbH and the Target Group Company in Germany (i) on the terms and conditions for the sale and
purchase of the Hamburg Site as set forth in a separate sale and purchase agreement (as a Schedule to be agreed between the Parties prior to Completion), and (ii) executing a deed of transfer before a German notary (Notar).

  

	6.3.2	Prior to the sale and transfer of the Hamburg Site referred to in Clause 6.3.1, the Seller and the Purchasers shall procure that NXP Semiconductors Germany GmbH (as the lessor of the Hamburg Site) and the Target Group
Company in Germany (as the lessee of the Hamburg Site) shall enter into a lease agreement as of completing the transfer of the Shares pursuant to Clause 6.2.1(k) with respect to the Hamburg Site (excluding the Hamburg Certified Area which will be
subject to Paragraph 2 of Schedule 23 (IT Separation and Hamburg Certified Area set up). This lease agreement will terminate upon completion of the sale and transfer of the Hamburg Site to the Target Group pursuant to Clause 6.3.1.

  

	6.4	Breach of Completion obligations; Default Payment Fee 

  

	6.4.1	If the Seller or any of the Purchasers breach any obligation under Clause 6.2, (such breaching Party, the “Defaulting Party” and the other Party, the
“Non-Defaulting Party”), the Non-Defaulting Party may choose not to proceed with Completion and set the first
(1st) Business Day of the Seller’s monthly reporting period of the immediately following month as the new date for Completion. If on the new date set for Completion in accordance with this
Clause 6.4.1, the Defaulting Party breaches any of its obligations under Clause 6.2, the Non-Defaulting Party may, but is not obliged to, without prejudice to any other rights and remedies available to it,
serve notice on the Defaulting Party to terminate this agreement. 

  

	6.4.2	If the Purchasers are unable to pay the Completion Amount on the Completion Date for any reason, the Default Payment Fee as set out in Clause 10.16.2 will apply. 

 

	6.4.3	No Party is obliged to proceed with a Completion action under Clause 6.2.1 until the immediately preceding Completion action has been completed, provided that if Completion occurs, all Completion Conditions will be
deemed to have been satisfied or waived as of Completion unless otherwise agreed upon in writing between the Seller and the Purchasers. 

  
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	6.4.4	For the purpose of Clause 6.4, a breach by the Company of Clause 6.2 will be deemed a breach by the Seller. 

  

	6.5	Acknowledgement of Notary and bank 

 The Parties acknowledge and agree that: 

 

	 	(a)	with reference to the Rules of Professional Conduct of the Royal Dutch Organisation of Civil Law Notaries, 

  

	 	(i)	Houthoff Buruma Coöperatief U.A. acts as counsel to the Purchasers in connection with, or acts as counsel for or on behalf of the Purchasers in the event of any dispute relating to, this agreement and any related
agreement; 

  

	 	(ii)	the Notary will execute the notarial deeds connected with this agreement; and 

  

	 	(iii)	the Notary is related to Houthoff Buruma Coöperatief U.A. as civil law notary, 

  

	 	(b)	they have engaged the Notary to effect the payments referred to in the Notary Letter and Clause 6.2; 

  

	 	(c)	each of the Seller and the Purchasers approve of ABN AMRO N.V. as the bank to hold the amounts to be transferred in accordance with this agreement on the Completion Date; and 

 

	 	(d)	in the event the wire instruction for the transfer of the funds by the Notary referred to in Clause 6.2.1(l) takes place on the Completion Date and not on a Business Day thereafter, the investigation by the Notary on
the Completion Date into the state of insolvency or other insolvency Laws with respect to the Seller and/or the Purchasers will only apply with respect to the period until (but not including) the Completion Date. The applicability of any insolvency
proceedings or other insolvency Laws with respect to the Seller and/or the Purchasers on the Completion Date could affect the validity, binding effect or enforceability of any act performed pursuant to this agreement or any other part of the
Transaction. The Parties accept that risk and will not hold the Notary nor Houthoff Buruma Coöperatief U.A. liable for the consequences of such effect. 

  
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	7	COMPLETION ADJUSTMENTS 

  

	7.1	The Statements 

  

	7.1.1	As soon as practicable, and in any event within sixty (60) Business Days after the Completion Date, the Seller shall prepare and deliver to the Purchasers: 

 

	 	(a)	an unaudited consolidated statement prepared in the form set out in Paragraph 1 of Schedule 3 (Completion Statements) setting forth the Working Capital at the Effective Time (the “Working Capital
Statement”); and 

  

	 	(b)	an unaudited consolidated statement prepared in the form set out in Paragraph 2 of Schedule 3 (Completion Statements) setting forth the Net Debt at the Effective Time (the “Net Debt
Statement”). 

  

	7.1.2	To enable the preparation and determination of the Statements, the Purchasers shall procure that all books and records relating to the Target Group are kept up-to-date and, subject to reasonable notice, are made available to the Seller’s Representatives during normal office hours, and shall cooperate with the Seller’s Representatives with regard to the
preparation and determination of the Statements. The Purchasers shall reasonably make available the services of the directors, employees and other Representatives of the Target Group to assist the Seller in the performance of the Seller’s
obligations and exercise of the Seller’s rights under this Clause 7.1 and Clause 7.3. 

  

	7.2	Principles 

 The Statements must be prepared in accordance with: 

 

	 	(a)	the specific principles, policies, procedures and practices set out in Paragraph 4 of Schedule 3 (Completion Statements);  

 

	 	(b)	the Accounting Principles as Consistently Applied, subject to Clause 7.2(a) above; and 

  

	 	(c)	US GAAP, to the extent not covered by the principles, policies, procedures and practices referred to in Clauses 7.2(a) and (b) above; 

provided that, in the case of a conflict or inconsistency between the various rules to which this Clause 7.2 refers, those referred to in
Clause 7.2(a) take precedence over those referred to in sub-clause (b) and (c), and those referred to in sub-clause (b) take precedence over those referred to
in sub-clause (c). 

  
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	7.3	Determination of the Statements 

 The Seller shall deliver the Working Capital Statement
and the Net Debt Statement to the Purchaser at the same time together with relevant supporting documentation and underlying calculations, and make available the services of the employees and other Representatives reasonably requested by the
Purchasers to enable the Purchasers to verify the Working Capital Statement and the Net Debt Statement, and: 
  

	 	(a)	if the Purchasers determine that the Statements have not been prepared by the Seller in accordance with Clause 7.2, the Purchasers shall within forty-five (45) Business Days after receipt of the Statements, deliver
a notice of such disagreement to the Seller (the “Notice of Disagreement”), such notice to specify (i) each line item in the Statements with which the Purchasers disagree, (ii) the amount of adjustment proposed by the
Purchasers, and (iii) in reasonable detail, the reason for the Purchasers’ disagreement in respect of each such line item; 

  

	 	(b)	if the Purchasers do not deliver the Notice of Disagreement in accordance with Clause 7.3(a), the Statements will be final and binding on the Seller and the Purchasers for all purposes; 

 

	 	(c)	if the Purchasers deliver the Notice of Disagreement in accordance with Clause 7.3(a), the Seller will have thirty (30) Business Days from its receipt of the Notice of Disagreement to review and respond to the
Notice of Disagreement: 

  

	 	(i)	all line items in the Working Capital Statement and the Net Debt Statement that are not included in the Notice of Disagreement will be final and binding on the Seller (and each relevant other member of the Seller’s
Group) and the Purchasers (and each relevant other member of the Purchaser’s Group) for all purposes; and 

  

	 	(ii)	the Seller and the Purchasers shall attempt in good faith to reach agreement in respect of those line items that are included in the Notice of Disagreement, provided that if the Seller and the Purchasers are unable to
reach such agreement within forty-five (45) Business Days following the Seller’s receipt of the Notice of Disagreement, the Seller or the Purchasers may by notice to the other Party require that those line items be referred to the
Reporting Accountants for resolution in accordance with Schedule 5 (Reporting Accountants); and 

  
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	 	(d)	no adjustment with respect to any line item included in the Statements may be made unless (i) the adjustment amount for such line item agreed or resolved in accordance with Clause 7.3(c) exceeds USD 250,000 (two
hundred fifty thousand US dollars), and (ii) the aggregate net adjustment amount for all line items referred to in the preceding sub-clause (i) exceeds USD 2,500,000 (two million five hundred
thousand US dollars), in which case the aggregate net adjustment amount and not just the excess over USD 2,500,000 (two million five hundred thousand US dollars), must be adjusted. 

 

	7.4	No forward looking valuations 

 The Purchasers shall not propose adjustments for the
Statements to the extent that these adjustments involve a judgement as to the future earnings potential, prospects or feasibility of the Target Group or other aspects of a forward looking nature except in accordance with the Accounting Principles.

  

	7.5	Adjustment of the Estimated Purchase Price 

  

	7.5.1	Working Capital Adjustment: 

  

	 	(a)	if the Working Capital exceeds the Estimated Working Capital, the Purchasers shall pay in cash on a dollar-for-dollar basis to the Seller
an amount equal to such excess; 

  

	 	(b)	if the Working Capital is less than the Estimated Working Capital, the Seller shall pay in cash on a dollar-for-dollar basis to the
Purchasers an amount equal to such deficit. 

  

	7.5.2	Net Debt Adjustment: 

  

	 	(a)	if the Net Debt exceeds the Estimated Net Debt, the Seller shall pay in cash on a dollar-for-dollar basis to the Purchasers an amount equal
to such excess; 

  

	 	(b)	if the Net Debt is less than the Estimated Net Debt, the Purchasers shall pay in cash on a dollar-for-dollar basis to the Seller an amount
equal to such deficit. 

  

	7.5.3	Any payment to be made under this Clause 7.5 will be increased with interest thereon calculated from the Completion Date (inclusive) to the date of payment (exclusive) at the Interest Rate. 

  
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52 

	7.6	Payment 

  

	7.6.1	The due date for any payment to be made under Clause 7.5 is the tenth (10th) Business Day after the Statements have been finally determined in accordance with Clause
7.3. 

  

	7.6.2	All payments made under Clause 7.5 must be made in US dollar and on account of the Purchase Price. 

  

	7.6.3	To the extent applicable, the payments to be made pursuant to Clause 7.5 must be aggregated and discharged by way of set-off against each other, but not against any other claims
or payments. 

  

	8	POST-COMPLETION OBLIGATIONS 

  

	8.1	Pre-Completion Receivables and Pre-Completion Payables 

 

	8.1.1	If at any time after Completion, any member of the Purchasers’ Group receives any amount in respect of the Pre-Completion Receivables, then the Purchasers shall procure that
the relevant member of the Purchasers’ Group pays the amount received (net of any associated costs and Tax consequences in respect of either the receipt or payment thereof) to the relevant member of the Seller’s Group, as soon as
reasonably practicable. If at any time after Completion, any member of the Purchasers’ Group receives a request for payment in respect of any Pre-Completion Payable, then the Seller shall procure that the
relevant member of the Seller’s Group, pays the amount requested (net of any associated costs and Tax consequences in respect of either the receipt or payment thereof) as soon as reasonably practicable following receipt of such request being
passed to it by the Purchasers. 

  

	8.1.2	If at any time after Completion, any member of the Seller’s group receives any amount in respect of the Business relating to the period after the Effective Time and which is not a
Pre-Completion Receivable, then the Seller shall procure that the relevant member of the Seller’s Group pays the amount received (net of any associated costs and Tax consequences in respect of either the
receipt or payment thereof) to the relevant member of the Target Group, as soon as reasonably practicable and in any event within three (3) Business Days of receipt of such amount. 

 

	8.2	Retention of records 

  

	8.2.1	 For a period of five (5) years after the Completion Date, or a longer period as may be prescribed by Law,
the Purchasers shall retain all books and records and, to the extent reasonably required by the Seller, the Purchasers shall allow the Seller access during normal office hours to these books and records,

  
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including the right to inspect and make copies (at the Seller’s expense), except where such access might result in a breach by the Purchasers of any applicable Law, or would cause undue
disruption to the business activities of the relevant Target Group Company or its management (but in such event as soon as reasonably possible thereafter). Clauses 5.11.2 and 5.11.3 will apply mutatis mutandis whereby a reference to
“Seller” will be deemed to be reference to “Purchasers”. 

  

	8.2.2	For a period of five (5) years after the Completion Date, or such longer period as may be prescribed by Law, the Seller’s Group shall retain any books and records and other written information relating to the
Target Group which is not delivered to the Target Group Companies by the Seller’s Group in the course of the Disentanglement and, to the extent reasonably required by the Purchasers, the Seller shall allow the Purchasers access during normal
office hours to such information relating to the Target Group, including the right to inspect and make copies (at the Purchasers’ expense), except where such access might result in the breach by the Seller of any applicable Law or would cause
material undue disruption to the business activities of the relevant Seller’s Group entity or its management (but in such event as soon as reasonably possible thereafter). Clauses 5.11.2 and 5.11.3 will apply mutatis mutandis. This
access includes access to the historical financial data of the Business. The Seller shall use reasonable efforts to support the Purchasers by gathering, for the risk, cost and account of the Purchasers, these historical financial data to the extent
reasonably requested by the Purchasers. 

  

	8.3	Insurance 

  

	8.3.1	The Parties acknowledge and agree that the Insurance Policies will be cancelled with respect to the Business on the Completion Date and coverage under the Insurance Policies for the Business will end immediately after
Completion for any event, occurrences or accidents occurring either prior to, on or after the Completion Date. Other than as set out in Clause 8.3.3, no member of the Purchasers’ Group, including the Target Group Companies after Completion,
will be entitled to report or claim any damage under any Insurance Policies irrespective of the terms of any Insurance Policies, after the Completion Date. 

  

	8.3.2	The Purchasers shall procure that, as from Completion, the Target Group Companies have insurance that gives cover, reasonably regarded as adequate, against fire, product liability and other risks which are normally
insured against by companies carrying on similar business activities or owning assets of a similar nature. 

  

	8.3.3	 If in the period as of the Completion Date up to 12:00 pm CET on the date which is twelve (12) months after
the Completion Date, the Purchasers become 

  
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aware of any events, occurrences or accidents that occurred prior to the Completion Date and pursuant to which any Target Group Company incurred damages that may be covered by any Insurance
Policy of the Seller’s Group, the Seller shall: 
  

	 	(a)	report such damages to the insurer and (subject to the insurer accepting to review the claim) use best efforts to seek compensation for such damages under such Insurance Policy, provided the Purchasers shall cooperate
with the Seller and shall procure that the relevant Group Companies make available to the Seller all information and documentation reasonably necessary to report and/or claim such damages; and 

 

	 	(b)	pay to the Purchasers any claim amounts it may receive from the insurer under such Insurance Policy, 

provided the Purchasers have notified the Seller as soon as reasonably practicable after becoming aware of any such event, occurrence or
accident. 
  

	8.4	Release of Guarantees 

  

	8.4.1	Subject to Completion, the Parties shall use reasonable efforts to procure, with effect from Completion or as soon as practicable thereafter, the release of the Seller and any other member of the Seller’s Group
from any Guarantees (whether or not joint or several, or both) given by, assumed by or binding upon the Seller or any other member of the Seller’s Group in relation to any Liability of the Target Group Companies. From and after Completion, the
Purchasers shall indemnify, defend and hold harmless the Seller and, as an irrevocable third-party stipulation (onherroepelijk derdenbeding), each other member of the Seller’s Group against all amounts paid by any of them after
Completion pursuant to any such Guarantees. 

  

	8.4.2	Subject to Completion, the Parties shall use reasonable efforts to procure, with effect from Completion or as soon as practicable thereafter, the release of each Target Group Company from any Guarantees (whether or not
joint or several, or both) given by, assumed by or binding upon that Target Group Company in relation to any Liability of the Seller or any other member of the Seller’s Group (excluding the Target Group Companies). From and after Completion,
the Seller shall indemnify, defend and hold harmless the Purchasers and, as an irrevocable third-party stipulation (onherroepelijk derdenbeding) each Target Group Company against all amounts paid by any of them after Completion pursuant to
any such Guarantees. 

  
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	8.5	Merger Philippines 

 The Purchasers shall procure, in relation to the merger between NXP
Semiconductors Philippines, Inc. and NXP Semiconductors Cabuyao Inc. (ATCB) as set out in the merger roadmap as included in the Data Room, that all documents, requests, endorsements, applications, declarations, filings, registrations, notices and
any other obligations or actions that are required to be made, lodged or performed in respect of this merger, are made, lodged or performed as soon as practicably possible after Completion, it being understood that to the extent such merger may
trigger any potential liability to Tax for any Target Group Company relating to a period on or after the Completion Date, the Parties agree that (i) they will cooperate to mitigate such potential liability to Tax, (ii) the Seller has the
right to decide to postpone or terminate the merger process and (iii) to the extent the Seller wishes the Purchasers to pursue with the merger, the Seller shall fully compensate the Purchasers for the amount of any liability to Tax arising as a
result of, or the reasonable out of pocket costs (as supported by valid invoices) relating to, the merger being finalised (it being understood that the Purchasers may not terminate or amend the merger process in the event of such full compensation
by the Seller). 
  

	9	WARRANTIES 

  

	9.1	Seller’s Warranties 

  

	9.1.1	Subject to Clause 9.1.3, the Seller represents and warrants to the Purchasers that the statements set out in Schedule 7 (Seller’s Warranties) (the “Seller’s Warranties”) are true
and accurate on the Signing Date, and will also be true and accurate on the Completion Date unless a Seller’s Warranty is given only on a specific date. 

  

	9.1.2	Each Purchaser agrees that no representations or warranties, express or implied, have been given or are given by or on behalf of the Seller or any member of the Seller’s Group to the Purchasers in connection with
the Disentanglement or the Transaction, under this agreement, the IP Transfer and License Agreement, or any Local Business Transfer Agreement, other than the Seller’s Warranties, except if and to the extent explicitly set out in such Ancillary
Agreement. For the avoidance of doubt and notwithstanding the generality of the foregoing, each Purchaser agrees that no representations or warranties, express or implied, have been given or are given by or on behalf of the Seller or any member of
the Seller’s Group to the Purchasers as to the accuracy of any forecasts, estimates, projections, statements of intent or statements of opinion howsoever provided to the Purchasers, any member of the Purchasers’ Group or any of their
respective Representatives. 

  
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	9.1.3	The Seller’s Warranties are limited by the Disclosed Information, and the Seller is not liable for any Seller’s Warranties being untrue or inaccurate in respect of any facts, matters or other information
included in the Disclosed Information, provided that such facts, matters or other information have or has been disclosed in such parts of the Disclosed Information where one would expect to find the relevant facts, matters or information, and
disclosed in such a manner and with such detail that the relevant facts, matters or information are clear from the face of the document and that a prudent individual who is knowledgeable in the relevant field reviewing the relevant information would
have reasonably assessed the financial, legal, commercial or other relevance and consequences thereof. 

  

	9.2	Purchasers’ Warranties 

 Each of the Purchasers severally and jointly represents and
warrants to the Seller that the statements set out in Schedule 8 (Purchasers’ Warranties) (the “Purchasers’ Warranties”) are true and accurate on the Signing Date and on Completion Date. 

 

	9.3	Exclusion of certain BW provisions 

 The applicability of articles 6:89, 7:17 and 7:20 to
7:23 BW inclusive is hereby excluded. 
  

	10	LIABILITY  

  

	10.1	Liability of the Seller 

  

	10.1.1	Subject to the provisions of this Clause 10 and any other applicable limitations of liability, the Seller shall be liable towards the Purchasers if any of the Seller’s Warranties is not true and accurate at the
date on which the Seller’s Warranty is given. 

  

	10.1.2	Subject to the provisions of this Clause 10 and without prejudice to Clauses 4.8 and 6.4.1, if the Seller is liable towards the Purchasers under Clause 10.1.1, the Purchasers as their sole and exclusive remedy may,
after Completion, claim the Losses suffered or incurred by the Purchasers as a result thereof, and may not terminate, nullify, or rescind this agreement, or claim specific performance (nakoming). 

 

	10.1.3	For the avoidance of doubt, Losses suffered by a Target Group Company will be deemed to be Losses suffered by the Purchasers. 

  

	10.1.4	Subject to Completion, the Parties agree that neither the Seller nor any member of the Seller’s Group shall be liable towards any Target Group Company or any other member of the Purchasers’ Group or vice versa
in connection with the Disentanglement, except for the obligations expressly set out in this agreement. 

  
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	10.1.5	Notwithstanding anything to the contrary in any Local Business Transfer Agreement, the Parties agree that the remedies provided for in this agreement, as limited by this Clause 10, Schedule 9 (Tax) or any
other limitations set out in this agreement, shall be the Purchasers’ Group’s and the Target Group’s sole and exclusive remedy for Losses suffered by the Purchasers, any other member of the Purchasers’ Group (including any Target
Group Company) in connection with the Disentanglement under, as a result of or in relation to this agreement or any of the Local Business Transfer Agreements. The Purchasers shall not, and shall procure that no other member of the Purchasers’
Group (including the Target Group Companies) will, bring any claim against the Seller or any other member of the Seller’s Group under any of the Local Business Transfer Agreements, without prejudice to the Purchasers’ right to bring any
claim against the Seller under this agreement. 

  

	10.2	Time limitations 

 The Seller is not liable for any claim in connection with the
Seller’s Warranties, unless the Purchasers notify the Seller of such claim specifying the matters set out in Clause 11.2: 
  

	 	(a)	in the case of any claim under the Fundamental Warranties within five (5) years after the Completion Date; 

  

	 	(b)	in the case of any Tax Claim, within ninety (90) days after expiry of the statutory limitation period applicable in the relevant jurisdiction for the Tax matter giving rise to such claims and any applicable term
during which additional assessments can be assessed under the relevant Law; and 

  

	 	(c)	in the case of any claim in relation to any other Seller’s Warranties, within eighteen (18) months after the Completion Date. 

 

	10.3	Minimum claims 

 Subject to any other applicable limitations of liability set out in this
agreement, the Seller is liable under the Seller’s Warranties in respect of any individual claim, or a series of claims arising from the same facts, only to the extent that the liability agreed or determined in respect of any such claim or
series of claims exceeds USD 1,400,000 (one million four hundred thousand US dollars), but then for the full amount and not only the excess. 

  
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	10.4	Aggregate minimum claims 

 Subject to any other applicable limitations of liability set
out in this agreement, the Seller is liable under the Seller’s Warranties in respect of any claim only to the extent that the aggregate amount of all claims for which the Seller would otherwise be liable under the Seller’s Warranties
exceeds USD 22,000,000 (twenty-two million US dollars), but then for the full amount and not only the excess. This limitation does not apply to claims in relation to the Fundamental Warranties and/or any
claims under the Tax Indemnity. 
  

	10.5	Maximum liability 

  

	10.5.1	The aggregate liability of the Seller in respect of any and all claims for the Losses for which the Seller becomes liable under the Seller’s Warranties, other than claims under the Fundamental Warranties, may not
exceed USD 275,000,000 (two hundred seventy-five million US dollars). 

  

	10.5.2	Without detracting from the limitation of liability set out in Clause 10.5.1, the aggregate liability of the Seller in respect of any and all claims for the Losses for which the Seller becomes liable under or in
connection with this agreement other than for a claim under the Fundamental Warranties and/or in relation to the Disentanglement, may not exceed USD 1,375,000,000 (one billion three hundred seventy-five million US dollars). 

 

	10.5.3	Without detracting from the limitation of liability set out in Clauses 10.5.1 and 10.5.2, the aggregate liability of the Seller in respect of any and all claims for the Losses for which the Seller becomes liable under
or in connection with this agreement, including claims under the Fundamental Warranties and/or in relation to the Disentanglement, may not exceed USD 2,750,000,000 (two billion seven hundred fifty million US dollars). 

 

	10.6	Purchasers’ awareness 

 The Seller is not liable for any Seller’s Warranty
being untrue or inaccurate if any member of the Purchaser’s Group or any of their respective Representatives is aware of such Seller’s Warranty being untrue or inaccurate or aware of any fact or circumstance which could reasonably render
such Seller’s Warranty being untrue or inaccurate on the Signing Date. 
  

	10.7	Provisions 

  

	10.7.1	 Subject to any other applicable limitations of liability set out in this agreement, the Seller is not liable
under or otherwise in connection with any breach of the Seller’s Warranties resulting from any fact, matter or claim for which any specific allowance, provision or reserve is made in the Accounts or the

  
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Statements, unless the Losses incurred in respect of such fact, matter or claim exceed the allowance, provision or reserve in respect thereof in the Accounts or the Statements, in which case the
Seller will only be liable for such excess. 

  

	10.7.2	For purposes of Clause 10.7.1, an allowance, provision or reserve is deemed to be specific if it can be reasonably evidenced on the basis of the financial administration of the Target Group that the allowance, provision
or reserve was intended by the management of the Target Group to relate fully or partly to the relevant fact, matter or claim. 

  

	10.8	Excluded matters 

 The Seller is not liable under or otherwise in connection with this
agreement in respect of any matter, act, omission or circumstance to the extent that the matter, act, omission or circumstance would not have occurred but for: 
  

	 	(a)	anything done or omitted to be done at the prior written request or with the prior written approval of the Purchasers or any Affiliate of the Purchasers; 

 

	 	(b)	anything done or omitted to be done at the request or with the prior written approval of any Target Group Company after the Completion Date; 

 

	 	(c)	any act or omission of the Purchasers, any Affiliate of the Purchasers or their respective Representatives after Signing, including any change in the nature or conduct of the Business as carried on by the Target Group
Companies after the Completion Date; 

  

	 	(d)	the passing of, or any change in, any Law or administrative practice of any Governmental Authority after Signing, including any increase in the rates of Taxation or any imposition of Taxation or any withdrawal of relief
from Taxation not actually in effect at the Completion Date; 

  

	 	(e)	any change after Signing of any generally accepted interpretation or application of any applicable Law; 

  

	 	(f)	any change after Signing of US GAAP or any generally accepted interpretation or application of US GAAP; or 

  

	 	(g)	any existing accounting or Taxation policy, basis or practice of the Purchasers or any Affiliate of the Purchasers as of Signing or any change in such accounting policy, basis or practice introduced or having effect
after Signing. 

  
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	10.9	Purchasers’ insurance 

 The Seller is not liable in respect of any claim made under
or otherwise in connection with this agreement to the extent that any Target Group Company or any member of the Purchasers’ Group has a right of recovery under a policy of insurance in respect of such claim. 

 

	10.10	Net financial benefit 

 The Seller is not liable in respect of any claim made under or
otherwise in connection with this agreement if any Target Group Company or any member of the Purchasers’ Group has any savings or net financial benefit, including any Tax Benefit, because of such claim or the facts giving rise to such claim,
but only to the extent of such savings or net financial benefit. 
  

	10.11	Breaches capable of remedy 

 Notwithstanding anything to the contrary in this agreement,
the Seller is not liable towards the Purchasers under or otherwise in connection with this agreement, other than in respect of a Tax Claim which will be subject to Schedule 9 (Tax), if and to the extent that (i) a claim is capable
of remedy and, (ii) after notice of such claim is delivered by the Purchasers to the Seller as contemplated by Clause 11.1 or Clause 11.2, such claim is remedied within a reasonable period (not to exceed twenty (20) Business Days) after
the date on which such notice is received by the Seller. 
  

	10.12	Mitigation of Losses 

 The Purchasers shall procure that all reasonable steps are taken
and all reasonable assistance is given by the Purchasers’ Group to avoid or mitigate any Losses suffered or incurred by any member of the Purchasers’ Group or any Target Group Company. 

 

	10.13	Purchasers’ right to recover 

  

	10.13.1	 If, before the Seller or any Affiliate of the Seller pays an amount in discharge of any claim under or otherwise
in connection with this agreement or any Ancillary Agreement , any member of the Purchasers’ Group is entitled to recover (whether by payment, set-off, discount, credit, relief, insurance or otherwise)
from a Third Party a sum which indemnifies or compensates any member of the Purchasers’ Group (in whole or in part) in respect of the Losses which are the 

  
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subject matter of the claim, then at the election and in the sole discretion of the Purchasers: 

  

	 	(a)	the Purchasers shall procure that, before steps are taken to enforce a claim against the Seller or any Affiliate of the Seller following notification under Clause 11.1 or Clause 11.2, all reasonable steps are taken to
enforce recovery against the Third Party (taking into account the reasonable commercial and other interests of the Purchasers’ Group), and any actual recovery (less any reasonable costs incurred in obtaining such recovery) shall reduce or
satisfy, as the case may be, such claim to the extent of such recovery; or 

  

	 	(b)	the Purchasers shall procure that all such rights of recovery of the relevant member of the Purchasers’ Group are assigned to the Seller, or an Affiliate of the Seller as designated by the Seller.

  

	10.13.2	If the Seller or an Affiliate of the Seller has paid an amount in discharge of any claim under or otherwise in connection with this agreement or any Ancillary Agreement and any member of the Purchasers’ Group is
subsequently entitled to recover (whether by payment, set-off, discount, credit, relief, insurance or otherwise) from a Third Party a sum which indemnifies or compensates any member of the Purchasers’
Group (in whole or in part) in respect of the Losses which are the subject matter of the claim, then at the election and in the sole discretion of the Purchasers: 

 

	 	(a)	the Purchasers shall procure that all reasonable steps are taken to enforce such recovery (taking into account the reasonable commercial and other interests of the Purchasers’ Group) and shall, or shall procure
that the relevant member of the Purchasers’ Group, pay to the Seller, as soon as practicable after receipt, an amount equal to the lesser of: 

  

	 	(i)	any sum recovered from the Third Party less any costs and expenses reasonably incurred in obtaining such recovery; and 

  

	 	(ii)	the amount previously paid by the Seller or an Affiliate of the Seller to the Purchasers or any member of the Purchasers’ Group in respect of such Losses; or 

 

	 	(b)	the Purchasers shall procure that all such rights of recovery of the relevant member of the Purchasers’ Group are assigned to the Seller, or an Affiliate of the Seller as designated by the Seller.

  

	10.14	No double claims 

 Neither the Seller nor any of the Seller’s Affiliates shall be
liable under or otherwise in connection with this agreement or any Ancillary Agreement more than once in respect of the same Loss. Neither the Purchasers nor any of the 

  
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Purchasers’ Affiliates nor any Target Group Company shall be liable under or otherwise in connection with this agreement or any Ancillary Agreement more than once in respect of the same
Loss. 
  

	10.15	Contingent Liabilities 

 Neither the Seller nor any of the Seller’s Affiliates shall
be obliged to make payment under or otherwise in connection with this agreement or any Ancillary Agreement in respect of any Liability which is contingent unless and until such contingent Liability ceases to be contingent. Nothing in this Clause
10.15 precludes the giving of notice of a claim which is contingent within the time limit set out in Clause 11.1 or 11.2. 
  

	10.16	Liability of the Purchasers 

  

	10.16.1	If a Purchasers’ Warranty is untrue or inaccurate on the date on which the Purchasers’ Warranty is given, or in the event of a breach of this agreement by the Purchasers, the Purchasers shall be liable to the
Seller for the Losses suffered or incurred by the Seller or any Affiliate of the Seller as a result of the Purchasers’ Warranty being untrue or inaccurate or as a result of the breach of this agreement, up to an amount equal to the Bid Value.

  

	10.16.2	Without limiting the generality of the preceding Clause 10.16.1, the Purchasers shall severally and jointly immediately owe and pay to the Seller an amount of USD 125,000,000 (one hundred and twenty-five million US
dollars) within five (5) Business Days after the first date set for Completion in accordance with Clause 6.1, if the Purchasers are unable to pay the Completion Amount on such Completion Date for any reason (the “Default Payment
Fee”). 

  

	10.16.3	If and when the Default Payment Fee is due and payable in accordance with Clause 10.16.2, the Seller and the Purchasers shall procure that an amount equal to the Default Payment Fee shall be paid to the Seller out of
the Deposit Amount and that prior to the payment of the Default Payment Fee to the Seller, an amount equal to the Default Payment Fee is blocked in the Escrow Account and cannot be used for purposes of payment of the Completion Amount at Completion.

  

	10.17	Third-party stipulation 

 The provisions of this Clause 10 are also for the benefit of,
and will be enforceable by, each relevant member of the Seller’s Group or its successors and permitted assigns, as third-party stipulations (onherroepelijk derdenbeding). 

  
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	10.18	No recourse for Seller 

 The Seller shall not make any claim against any Target Group
Company and any Representative of any Target Group Company which it may have in respect of a misrepresentation, inaccuracy or omission in or from information or advice provided by any such person for the purpose of assisting the Seller in relation
to the Seller’s Warranties or any other matter covered by this agreement. The provisions of this Clause 10.18 are also for the benefit of, and will be enforceable by, each relevant member of the Purchasers’ Group (for the avoidance of
doubt including the Target Group Companies as of the Completion Date) or its successors and permitted assigns, as third-party stipulations (onherroepelijk derdenbeding). 

 

	10.19	Fraud and gross negligence 

 The limitations of liability set out in this Clause 10 do
not apply in the event the liability of a Party for Losses suffered is attributable partly or wholly to fraud, wilful misconduct or gross negligence on behalf of that Party. 
  

	11	CLAIMS 

  

	11.1	Notification of potential claims 

  

	11.1.1	Without imposing additional time limits to those set out in Clause 11.2, if the Purchasers or any member of the Purchasers’ Group becomes aware of any matter or circumstance that may give rise to a claim against
the Seller under or otherwise in connection with this agreement, the Purchasers shall as soon as reasonably practicable after becoming aware of any such matter or circumstance, but in any event within twenty (20) Business Days of becoming aware
of such matter or circumstance, notify the Seller in writing setting out such information as is available to the Purchasers or any member of the Purchasers’ Group as is reasonably necessary to enable the Seller to assess the merits of the
claim, to act to preserve evidence and to take any other actions that the Seller may consider necessary. 

  

	11.1.2	Any failure of the Purchasers to give notice within the time limits referred to in Clause 11.1.1 does not release the Seller of its liability, except for the amount of Losses that is the result of such failure to give
notice within these time limits. 

  

	11.2	Notification of claims 

 Without prejudice to Clause 11.1, notices of claims by the
Purchasers under or otherwise in connection with this agreement must be given in writing by the Purchasers to the Seller within the time limits specified in Clause 10.2, specifying full information of the legal and factual basis of the claim and the

  
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information on which the Purchasers rely and, to the extent possible, an estimate of the amount of Losses which are, or will be, the subject of the claim (including any Losses which are
contingent on the occurrence of any future event). Any failure of the Purchasers to so give notice does not release the Seller of its liability, except for the amount of Losses that is the result of such failure to give proper notice. 

 

	11.3	Commencement of proceedings 

 Any claim notified to the Seller will be deemed, if it has
not been previously satisfied, settled or withdrawn, to be irrevocably withdrawn and after the Seller has given written notice to the Purchasers finally denying liability and requiring the Purchasers to commence proceedings: 

 

	 	(a)	six (6) months after the notice is given pursuant to Clause 11.2, unless legal proceedings in respect of that claim have been formally commenced; 

 

	 	(b)	if a claim is contingent or conditional, three (3) months after the claim for which the notice is given pursuant to Clause 11.2 ceases to be contingent or conditional, unless legal proceedings in respect of that
claim have been formally commenced; and 

  

	 	(c)	if legal proceedings commenced pursuant to (a) or (b) above are not being, and do not continue to be, pursued with reasonable diligence. 

 

	11.4	Procedure for Third-Party Claims 

 If any claim is brought by a Third Party (a
“Third-Party Claim”) against any member of the Purchasers’ Group or, as the case may be, any member of the Seller’s Group (the “Relevant Indemnified Party”), in respect of which indemnification may be
sought from the Seller or, as the case may be, from the Purchasers (the “Relevant Indemnifying Party”) pursuant to this agreement, the Purchasers or, as the case may be, the Seller shall procure that the Relevant Indemnified Party
notifies the Relevant Indemnifying Party of the Third-Party Claim in accordance with Clause 11.1 or 11.2, as applicable, and: 
  

	 	(a)	does not (i) make any admissions in relation to the Third-Party Claim, or (ii) compromise, dispose of or settle the Third-Party Claim without the prior written consent of the Relevant Indemnifying Party;

  

	 	(b)	 subject to the Relevant Indemnifying Party acknowledging the indemnity obligation towards the Relevant
Indemnified Party for the full amount of the Losses in connection with such Third-Party Claim, allows the Relevant Indemnifying Party to take such action as it deems 

  
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necessary to avoid, dispute, deny, defend, resist, appeal, compromise or contest the Third-Party Claim (including making counterclaims or claims against Third Parties) in the name of and on
behalf of the Relevant Indemnified Party and to control the conduct of any related proceedings, negotiations or appeals (but at all times taking into account the reasonable commercial and other interests of the Relevant Indemnified Party); and

  

	 	(c)	furnishes all such documents, books and records and other information, and gives all such assistance including access to premises and personnel, and the right to examine and copy or photograph any assets, accounts,
documents and records, as the Relevant Indemnifying Party may reasonably request for the purpose referred to in the preceding sub-clause (b), including instructing such professional or legal advisors as the
Relevant Indemnifying Party may nominate to act on behalf of the Relevant Indemnified Party, but in accordance with the Relevant Indemnifying Party’s instructions, it being agreed that the Relevant Indemnifying Party shall keep the Relevant
Indemnified Party informed of all relevant matters relating to the claim and shall forward or procure to be forwarded to the Relevant Indemnified Party copies of all material external correspondence relating to the claim other than such
correspondence that is subject to legal professional or litigation privilege of the Relevant Indemnifying Party. 

  

	11.5	Third-party stipulation limitation 

 The provisions of this Clause 11 apply mutatis
mutandis to any claim made under a third-party stipulation (derdenbeding) included in this agreement. 
  

	12	TAX 

 The provisions of Schedule 9 (Tax), apply in respect of Taxes. 

 

	13	EMPLOYEES AND PENSION PLANS 

  

	13.1	Employees 

 The provisions of Paragraph 8 of Schedule 10 (Disentanglement
Plan) apply in respect of Employees. 
  

	13.2	Pension Plans 

 The provisions of Paragraph 9 of Schedule 10 (Disentanglement
Plan) apply in respect of Pension Plans. 

  
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	14	RESTRICTIONS ON SELLER 

  

	14.1	Non-solicit 

 During the Restricted Period, the
Seller shall not and shall procure that none of its Affiliates shall, directly or indirectly, for its own account or on behalf of an Affiliate, induce any Restricted Employee to leave the employment of a Target Group Company and in no circumstances
shall the Seller or any of its Affiliates employ or attempt to employ any Restricted Employee, offer any contract for services to any Restricted Employee, or in any way have any Restricted Employee perform any activities, in each case except
pursuant to an agreement with the Purchasers or the Ancillary Agreements. 
  

	14.2	Ancillary restrictions 

  

	14.2.1	The Seller shall not, and shall procure that no member of the Seller’s Group will, undertake any Restricted Activity during the Restricted Period. 

 

	14.2.2	The restrictions in Clause 14.2 do not operate to prohibit any member of the Seller’s Group from: 

  

	 	(a)	fulfilling any obligation pursuant to this agreement and any agreement entered into pursuant to this agreement; 

  

	 	(b)	carrying on any businesses of the Seller’s Group at Completion (other than the Business) and any natural extensions or successors thereof; 

 

	 	(c)	acquiring the whole or part of any business if the turnover attributed to Restricted Activities of that business does not represent more than 25% (twenty-five per cent) of the aggregate annual turnover of that business;

  

	 	(d)	without detracting from sub-clause (c) of this Clause 14.2.2, holding an interest in a business which is engaged in a Restricted Activity in respect of which the
Seller’s Group does not have a majority shareholding or other controlling interest, or the right to nominate the majority of directors or representatives of similar standing to the board of directors or a governing body of similar standing,
provided that if the business is listed on any recognised stock exchange, a controlling interest will be deemed to exist if the interest held amounts to 10% (ten per cent) or more of the outstanding issued share capital of a company.

  
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	15	CONFIDENTIALITY 

  

	15.1	Public announcements 

  

	15.1.1	No public announcement, circular or other public communication in connection with the existence or the subject matter of this agreement or the Transaction may be made or issued by or on behalf of the Seller or the
Purchasers, or their respective Affiliates, without the prior written approval of the Purchasers (in the case of any public announcements, circulars or other public communications by the Seller or its Affiliates) or the Seller (in the case of any
public announcement, circular or other public communication by the Purchasers or its Affiliates), respectively, which approval may not be unreasonably withheld, delayed or given untimely to the extent the communication is required pursuant to
applicable Law, or a binding decision of a court or another Governmental Authority, provided that the Seller and its Affiliates may make such public announcement, circular or other public communication as they deem reasonably required or advisable
to comply with applicable Law or the rules of any officially recognised exchange on which the securities of the Seller or any of its Affiliates are listed. 

  

	15.1.2	The Seller and the Purchasers shall agree on the contents and the timing of any separate or joint press release to be issued in connection with the Transaction. 

 

	15.2	Confidentiality undertaking 

  

	15.2.1	The Non-Disclosure Agreement will continue to have force and effect up to Completion in accordance with its terms. 

 

	15.2.2	Without prejudice to the terms and conditions of the Non-Disclosure Agreement and subject to Clause 15.1, each Party shall treat as strictly confidential and not release, disclose
or use any information contained in, received or obtained as a result of entering into this agreement and any of the Ancillary Agreements which relates to: 

  

	 	(a)	the provisions of this agreement or any agreement entered into in connection with the Transaction; 

  

	 	(b)	the negotiations relating to this agreement or any such other agreement; or 

  

	 	(c)	the Seller or the Purchasers or the business activities carried on by them or any of their respective Affiliates; 

  
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unless the disclosure or use is reasonably required to vest the full benefit of this agreement in any Party or is required pursuant to applicable Law, the rules of any officially recognised
exchange or a binding decision of a court or another Governmental Authority. 
  

	16	MISCELLANEOUS 

  

	16.1	Further assurances 

 The Seller and the Purchasers shall at their own cost and expense
from time to time execute and procure to be executed such documents and perform and procure to be performed such acts and things as may be reasonably required by each of them to effect the Transaction and to give the Parties the full benefit of this
agreement. 
  

	16.2	Entire agreement 

 This agreement contains the entire agreement of the Parties in
relation to its subject matter. All previous agreements and arrangements made by the Parties in relation to that subject matter are hereby terminated. 
  

	16.3	Assignment 

 Other than as set out in Clause 2.3, no Party may, without the prior written
consent of the other Parties, assign or grant any security interest over or otherwise transfer, in whole or in part, any of its rights and obligations under this agreement, it being agreed that the Purchasers may create any Encumbrance effective as
of Completion on its rights under this agreement in favour of any party providing them with financing in relation to the Transaction. 
  

	16.4	Invalidity 

  

	16.4.1	In this Clause 16.4, “enforceable” includes legal, valid and binding (and derivative terms are to be construed accordingly). 

 

	16.4.2	If any provision in this agreement is held to be or becomes unenforceable, in whole or in part, under any applicable Law: 

  

	 	(a)	that provision or part of that provision will to the extent of its unenforceability be deemed not to form part of this agreement but, subject to the restrictions of article 3:41 BW, the enforceability of the remainder
of this agreement will not be affected; and 

  

	 	(b)	the Parties shall use commercially reasonable efforts to agree a replacement provision that is enforceable to achieve so far as possible the intended effect of the unenforceable provision. 

  
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	16.5	Counterparts 

 This agreement may be entered into in any number of counterparts, all of
which taken together will constitute one and the same instrument. The Parties may enter into this agreement by signing any such counterpart. 
  

	16.6	Waiver 

 No waiver of any provision of this agreement will be effective unless that
waiver is in writing and signed by or on behalf of the Party entitled to make the waiver. 
  

	16.7	Amendment 

 No amendment of this agreement will be effective unless that amendment is in
writing and signed by or on behalf of each Party. 
  

	16.8	Third-party rights 

 Except where this agreement expressly provides otherwise: 

 

	 	(a)	this agreement contains no stipulations for the benefit of a third party (derdenbedingen) which may be invoked by a third party against a Party; and 

 

	 	(b)	where this agreement contains a stipulation for the benefit of a third party, this agreement (including the relevant third-party’s rights under this agreement) may be terminated, amended, supplemented or waived (in
each case either in its entirety or in part) without that third-party’s consent. 

  

	16.9	No rescission 

 Without prejudice to Clauses 4.8 and 6.4.1, each Party waives its right
to rescind (ontbinden) this agreement, in whole or in part, on the basis of article 6:265 BW or to request a competent court to amend this agreement on the basis of article 6:230(2) BW. If a Party has made an error (heeft gedwaald) in
making this agreement, it shall bear the risk of that error. 
  

	16.10	No withholding and gross up 

 Any sum payable under this agreement must be paid free and
clear of all Tax Deductions except as required by Law. If any such sum is subject to a Tax Deduction required by Law, that payment will be increased to ensure that after the Tax Deduction, and taking into account any credit or refund relating to
such deduction or withholding at the level of the relevant recipient receiving the payment to the extent such credit or refund is actually available or can actually 

  
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be made available within a reasonable period to such relevant recipient, the relevant recipient receives a net amount equal to the amount it would have been entitled to if the sum payable under
this agreement had not been subject to that Tax Deduction. It is agreed and understood between the Parties that the Purchasers, each relevant Target Group Company or other member of Purchasers’ Group will not be obliged to pay any additional
amount in relation to any payment made in connection with the Disentanglement, except as otherwise provided under this agreement or any Ancillary Agreement. 
  

	16.11	Method of payment 

 Any payment under or otherwise in connection with this agreement must
be effected in US dollar unless otherwise agreed between the Parties by crediting the full amount of the payment (without any deduction whatsoever, whether for bank transmission charges or otherwise) for same day value to the bank account specified
by the Party entitled to the payment, reasonably in advance and in sufficient detail to enable payment by telegraphic or other electronic means to be effected, on or before the due date for payment. 

 

	16.12	Set-off 

 The Purchasers do not have any right of
set-off against, deduction from, or suspension of payment of the Estimated Purchase Price or the payments referred to in Clause 10.16.2, except that the Deposit Amount will be set off against the Estimated
Purchase Price. 
  

	16.13	Adjustment of the Purchase Price 

 Any payment made by the Seller to the Purchasers, or
by the Purchasers to the Seller, in each case pursuant to this agreement, other than the payment of the Estimated Purchase Price at Completion or any payment pursuant to Clause 7.5, will be an adjustment of the Purchase Price equal to any such
amount. 
  

	16.14	Costs 

  

	16.14.1	Except where this agreement provides otherwise, all costs which a Party has incurred or must incur in preparing, concluding or performing this agreement are for its own account. 

 

	16.14.2	Except where this agreement provides otherwise: 

  

	 	(a)	except as provided under (b) below, all stamp, real estate and other transfer, registration, sales and other similar Taxes, duties, fees, imposts, levies and charges in connection with the Disentanglement or the
Transaction shall be borne equally by the Seller on the one hand and the Purchasers on the other hand; 

  
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	 	(b)	any German real estate transfer tax due in connection with the transfer of the Hamburg Site shall be for the account of the Purchasers up to a maximum amount of the applicable German real estate transfer tax rate times
the fair market value allocated to such German real estate and any excess amount, including any interest and penalties relating thereto, shall be borne by the Seller; and 

 

	 	(c)	the Parties shall reasonably cooperate with analysing any obligations as set forth in items (a) and (b) above and reasonably consult each other before making any filings or taking any actions in this respect.

  

	16.14.3	For the avoidance of doubt, all income Tax payable (whether calculated on capital gains realised or otherwise) in connection with the Disentanglement shall remain for the account of the Seller. 

 

	16.14.4	Subject to Clauses 16.14.1 and 16.14.2 above and unless otherwise agreed in this agreement or any Ancillary Agreement, the costs and charges in connection with the Disentanglement will: 

 

	 	(a)	if relating to the period, or actions undertaken in the period, up to and including the Completion Date, be for the account of the Seller (whereby, for the avoidance of doubt, costs of the Germany notary (Notar)
relating to the transfer of the Hamburg Site, advisory fees, transaction bonuses, and any payment obligations towards Employees by the Target Group relating to any Transaction related stay-on scheme or other
incentive scheme initiated prior to Completion will be deemed to relate to the period before the Completion Date); and 

  

	 	(b)	if relating to the period after the Completion Date, be for the account of the Purchasers, 

provided, however, that: 
  

	 	(c)	the Purchasers shall be solely responsible and liable for the Employment Costs of the Disentanglement Hires; and 

  

	 	(d)	the Purchasers shall be solely responsible and liable for the costs of any programs primarily for the benefit of, or preparing, the Target Group for the period after Completion (such as corporate branding for the Target
Group), including costs of consultants or advisors engaged for such purpose and the costs of the Seller’s Group to implement such programs prior to Completion. 

  
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	16.14.5	To the extent that (a) any of the Taxes, duties, fees, imposts, levies or charges to be borne by the Purchasers in accordance with Clause 16.14.1 or Clause 16.14.2, or (b) any of the costs to be borne by the
Purchasers in accordance with Clause 16.14.3, have been paid by any member of the Seller’s Group (including, for the avoidance of doubt, the Target Group Companies) on or before Completion or are due by any member of the Seller’s Group
(excluding, for this purpose, the Target Group Companies), the Purchasers shall reimburse the amount of such Taxes, duties, fees, imposts, levies charges or costs, in addition to any amounts expressed in this agreement to be payable by the
Purchasers, to the Seller on the Completion Date. 

  

	16.14.6	To the extent that any of the costs to be borne by the Seller in accordance with Clauses 16.14.2 through 16.14.5, have been paid by any member of the Purchasers’ Group (excluding, for the avoidance of doubt, the
Target Group Companies) or are due by any member of the Purchasers’ Group (including, for this purpose, the Target Group Companies), the Seller shall reimburse the amount of such Taxes, duties, fees, imposts, levies charges or costs, in
addition to any amounts expressed in this agreement to be payable by the Seller, to the Purchasers on the Completion Date. 

  

	16.14.7	Notwithstanding the preceding Clauses, the Seller shall pay all fees of the Notary payable in connection with the Transaction. 

  

	16.14.8	For the avoidance of doubt, any Chinese capital gains Tax on indirect transfers in connection with the Transaction and/or the Disentanglement and any VAT in connection with the Disentanglement are arranged for
separately in Paragraphs 10 and 11 of Schedule 9 (Tax). 

  

	16.15	Interest 

 If any Party defaults in the payment when due of any amount payable under or
otherwise in connection with this agreement, the liability of that Party will be increased to include interest on that amount from the date when such payment is due (inclusive) under or otherwise in connection with this agreement until the date of
actual payment (exclusive) at the Interest Rate. 
  

	16.16	Notices 

  

	16.16.1	Any notice, request, consent, claim, demand and other communication between the Parties in connection with this agreement (a “Notice”) must be in writing and be given and be deemed to have been duly
given if written in the English language and: 

  

	 	(a)	delivered personally (Notice deemed given upon receipt); 

  
 50 / 52 

	 	(b)	delivered by registered post (Notice deemed given upon confirmation of receipt); 

  

	 	(c)	delivered by e-mail (Notice deemed given upon receipt by the e-mail server of the Seller); or 

 

	 	(d)	sent by an internationally recognised overnight courier service such as Federal Express (Notice deemed given upon receipt), with a copy by email. 

with a copy by email in case of Notice being given by way of the method under (a), (b) or (d) above. 

 

	16.16.2	All Notices must be sent to the Persons and at the addresses set out in Schedule 14 (Parties’ details for Notices), or such other Persons or addresses as notified to the other Party from time to time.

  

	17	GOVERNING LAW AND DISPUTE RESOLUTION 

  

	17.1	Governing law 

 This agreement (including Clause 17.2) and the documents to be entered
into pursuant to it, save as expressly otherwise provided therein, are governed by and to be construed in accordance with Dutch Law. 
  

	17.2	Dispute resolution 

  

	17.2.1	Parties shall attempt in good faith to resolve promptly any dispute arising out of or in connection with this agreement by negotiation. 

 

	17.2.2	All disputes arising out of or in connection with this agreement and the documents to be entered into pursuant to it, including disputes concerning the existence and validity thereof, will be finally and exclusively
resolved in accordance with the arbitration rules of the International Chamber of Commerce taking into account the following: 

  

	 	(a)	the arbitral tribunal will be composed of three (3) arbitrators and each of them appointed in accordance with the applicable arbitration rules; 

 

	 	(b)	the place of the arbitration will be Singapore; 

  

	 	(c)	the language of the arbitration will be English; 

  

	 	(d)	the arbitral tribunal shall decide in accordance with the rules of law (naar de regelen des rechts); and 

  
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	 	(e)	any dispute and the existence and content of any arbitral proceedings under this Clause 17.2 must be kept strictly confidential by the Seller and the Purchasers, the members of the arbitral tribunal and the
International Chamber of Commerce (including the ICC Internal Court of Arbitration), and no publication of any arbitral award, any other decision of the arbitral tribunal or any materials produced or exchanged in the course of such arbitral
proceedings is permitted, except: 

  

	 	(i)	to the extent that disclosure or publication is required to fulfil a legal duty, protect a legal right, or enforce or challenge an arbitral award in legal proceedings before a court or other judicial authority;

  

	 	(ii)	with the written consent of the Parties; 

  

	 	(iii)	where required for the preparation or presentation of a claim or defence in arbitral proceedings under this Clause 17.2; 

  

	 	(iv)	by order of the arbitral tribunal at the request of a Party; or 

  

	 	(v)	to the extent required pursuant to the Law or the rules of any officially recognised exchange on which the securities of the Party are listed. 

 

	17.3	Other disputes 

 This Clause 17 (Governing Law and Dispute Resolution) shall also
apply to disputes arising in connection with the Ancillary Agreements, unless the relevant agreement expressly provides otherwise. 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 52 / 52 

 THIS AGREEMENT HAS BEEN SIGNED ON THE DATE STATED AT THE BEGINNING OF THIS AGREEMENT BY: 

 

					
	NXP B.V.	 		 	
			
	 /s/ Charles Smit
	 		 	 /s/ Sean Pitonak

	Name: Charles Smit	 		 	Name: Sean Pitonak
	Title: SVP	 		 	Title: VP

  

	
	BEIJING JIANGUANG ASSET MANAGEMENT CO., LTD
	
	 /s/ Zhang Xinyu

	Name: Zhang Xinyu
	Title: Attorney-in-law
	
	WISE ROAD CAPITAL LTD
	
	 /s/ Zhang Yuanjie

	Name: Zhang Yuanjie
	Title: Attorney-in-law

  
 SALE AND PURCHASE AGREEMENT 

 Schedule 1     Definitions and interpretation 

1                Definitions 

Capitalised terms, including those used in the introduction and recitals of this agreement, have the following meaning: 

Accounts means the unaudited financials in respect of the Business as at, and for the twelve (12) month period ended on,
31 December 2015, as included in the Data Room; 
 Accounting Principles means the Seller’s Group’s accounting
principles; 
 Affiliate means with respect to any Person, another Person directly or indirectly Controlling, Controlled by, or under
common Control with the first Person as of the date on which, or at any time during the period for which, the determination of affiliation is being made; 

Agreed Form means, in relation to a document, that document in a form agreed between the Seller and the Purchasers at Signing with any
alterations as may be agreed in writing between the Seller and the Purchasers from time to time; 
 Allocated Employees means the
following employees of the Seller’s Group (other than the Dedicated Employees): 
  

	 	(a)	employees of the Seller’s Group who prior to Completion are primarily (i.e., at least 50% of their working time) engaged in the Business; and 

 

	 	(b)	such additional number of relevant employees of the Seller’s Group identified by the Seller and the Purchasers jointly in good faith prior to Completion so that the Employment Costs of the Allocated Employees
(taking into account their functions) correspond to the shared service costs allocated to the Business; 

 Ancillary
Agreements means the agreements set out in Clause 6.2.1 sub-clause (f), any other transitional services agreements or other agreements to be entered into by the Seller or a member of the Seller’s
Group on the one hand, and a Target Group Company on the other hand in connection with the Transaction, provided that the Ancillary Agreements shall not include any Local Business Transfer Agreement, and Ancillary Agreement means any one of
them; 
 ATCB means NXP Semiconductors Cabuyao, Inc; 

  
 SALE AND PURCHASE AGREEMENT 

 ATGD means NXP Semiconductors Guangdong Ltd.; 

ATSN means NXP Semiconductors Malaysia Sdn. Bhd.; 

Automatic Transfer Employees has the meaning set out in Paragraph 8.2 of Schedule 10 (Disentanglement Plan);  

Bid Value has the meaning set out in Clause 3.1(a); 

Business has the meaning set out in consideration (A) of this agreement; 

Business Assets has the meaning set out in Paragraph 3.1 of Schedule 10 (Disentanglement Plan), and Business Asset
means any one of them or the relevant one of them, as the context requires; 
 Business Contract means any written Contract to which
any member of the Seller’s Group is a party and which has been entered into in the course of conducting the Business to the extent in force and effect on the Signing Date (unless terminated thereafter in the ordinary course of business) and/or
the Completion Date, except for any (i) Non-Exclusive Contract, (ii) Contract predominantly relating to Intellectual Property Rights and Technology or to Intellectual Property Rights (which does not
comprise R&D Contracts or licenses in connection with the delivery of products by the Seller’s Group to the counterparty), or (iii) intragroup agreement or umbrella agreement as referred to in
sub-clause (b) of Clause 5.8.1; 
 Business Day means a day which is not a Saturday, a
Sunday or a public holiday in the Netherlands on which banks are generally open for normal business; 
 Business Intellectual Property
has the meaning set out in the IP Transfer and License Agreement; 
 Business Liabilities has the meaning set out in Paragraph 3.3
of Schedule 10 (Disentanglement Plan), and Business Liability means any one of them or the relevant one of them, as the context requires; 

BW means the Dutch Civil Code (Burgerlijk Wetboek); 

CFIUS means Committee on Foreign Investment in the United States 

CFIUS Approval has the meaning set out in Clause 4.1(d); 

CFIUS Notice has the meaning set out in Clause 4.5.3; 

Company has the meaning set out in recital (B) of this agreement. 

  
 SALE AND PURCHASE AGREEMENT 

 Company Intellectual Property has the meaning set out in the IP Transfer and License
Agreement; 
 Competition Authorities means the competition authorities in the countries as set out in Schedule 6 (Merger
Clearance Filings) or any other competition authority to which the Transaction was referred by any of the competition authorities set out in Schedule 6 (Merger Clearance Filings), and Competition Authority means any one of
them or the relevant one of them, as the context requires; 
 Completion means, subject to the satisfactory performance and completion
of all actions set out in Clause 6.2 the completion of the sale and transfer of the Shares to the Purchasers, provided that if the context otherwise requires, Completion may also mean the performance of the actions set out in Clause 6.2; 

Completion Amount has the meaning set out in Clause 6.2.1(d); 

Completion Conditions means the conditions set out in Clause 4.1, and Completion Condition means any one of them or the relevant
one of them, as the context requires; 
 Completion Date means, subject to the satisfactory performance of all Completion actions set
out in Clause 6.2, the date on which Completion commences; 
 Consistently Applied means consistent application to be measured on the
basis of the Accounting Principles incorporating the specific principles as applied in the Accounts, without taking into account any summary of uncorrected misstatements relating to the Accounts, if any; 

Contract means any contract, agreement, lease, licence, commitment, understanding, franchise, warranty, guarantee, mortgage, note, bond,
option, warrant, right or other instrument or consensual obligation, whether written or oral and whether express or implied; 

Control means, with respect to a Person, (i) the direct or indirect ownership of more than 50% (fifty per cent) of the outstanding
voting securities (or comparable voting interest or financial participation) of such Person, (ii) the ability to appoint more than one-half of the directors of the board of directors or equivalent
governing body of such Person, or (iii) the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person. The terms “Controlling,” “Controlled
by” and “under common Control” have the correlative meanings; 

  
 SALE AND PURCHASE AGREEMENT 

 Data Room means the virtual data room containing documents and information relating to the
Target Group, the contents of which are filed on the DVD enclosed as Schedule 22 (Data Room DVD); 
 Dedicated Companies
means the companies listed Schedule 2 (Dedicated Companies*), Dedicated Company means any one of them or the relevant one of them, as the context requires; 

Dedicated Employees means (i) the employees of the Dedicated Companies immediately prior to Completion, (ii) the employees of
the Seller’s Group (excluding the Dedicated Companies) who are fully dedicated to the Business immediately prior to Completion, and (iii) the employees of the Seller’s Group who are fully dedicated to ITEC immediately prior to
Completion, in each case excluding the Excluded Employees; 
 Deed of Transfer means the notarial deed of transfer of the Shares to be
finalised and attached in Agreed Form prior to Completion in Schedule 16 (Agreed Form Deed of Transfer); 
 Defaulting
Party has the meaning set out in Clause 6.4.1; 
 Default Payment Fee has the meaning set out in Clause 10.16.2;  

Deposit Amount has the meaning set out in Clause 5.6.1; 

Disclosed Information means any facts, matters or other information included or provided in (i) this agreement or any Ancillary
Agreement, (ii) the Due Diligence Information, or (iii) any written correspondence prior to 8 June 2016, 23:59 p.m. CET between the Seller, any of its Affiliates, or any of their respective Representatives on the one hand and the
Purchasers, any of its Affiliates or any of their respective Representatives on the other hand; 
 Disentanglement has the meaning set
out in consideration (F) of this agreement; 
 Disentanglement Hires has the meaning set out in Paragraph 1.5 of Schedule
10 (Disentanglement Plan); 
 Due Diligence Information means: 

 

	 	(a)	the information contained in the Data Room on 8 June 2016, 23:59 p.m. CET, including the questions raised and answers provided in the Data Room; 

  
 SALE AND PURCHASE AGREEMENT 

	 	(b)	the documentation received by any member of the Purchasers’ Group or its Representatives during and pursuant to: 

  

	 	(i)	the management presentations and expert sessions held in Eindhoven between 4 April and 7 April 2016; and 

  

	 	(ii)	site visits to the Hamburg Site on 7 April 2016, ATSN on 11 April 2016, ATGD on 12 April 2016 and the Manchester site on 28 April 2016; 

Dutch Works Council means the works council (ondernemingsraad) of NXP Semiconductors Netherlands B.V.; 

Effective Time means one (1) minute after 23:59 p.m. on the last day of the monthly reporting period of the Seller’s Group
immediately preceding the Completion Date; 
 Employees means the Dedicated Employees and the Allocated Employees collectively; 

Employment Costs means: 
  

	 	(a)	the amounts payable or paid to or in respect of the employment of the relevant Employee (including salary, wages, Tax and social security contributions, employer’s pension contributions, bonus, insurance premiums,
payments or allowances or any other consideration for employment); and 

  

	 	(b)	the costs of providing any non-cash benefits which the employer is required to provide by Law or contract or customarily provides in connection with such employment (including
other employee benefit provisions); 

 Employment Liabilities means any and all Losses, excluding Employment Costs,
directly arising out of or directly connected with employment or the employment relationship, or the initiation or the termination of employment, or of the employment relationship (including all Losses in connection with any claim, award, judgment
or agreement for redundancy pay, or damages or compensation for unfair or wrongful dismissal or breach of contract or discrimination); 

Encumbrance means any claim, charge, pledge, mortgage, lien, option, equity, power of sale, hypothecation, usufruct, retention of title,
right of pre-emption, right of first refusal or other third-party rights or security interest of any kind or an agreement to create any of the foregoing; 

  
 SALE AND PURCHASE AGREEMENT 

 Environment means any or all of the following media (alone or in combination): ground,
soil, ground water, surface water, air and any ecological systems and living organisms supported by these media; 
 Environmental
Authority means any Governmental Authority having jurisdiction to determine any matter arising under Environmental Law or relating to the Environment, or both; 

Environmental Condition means any contamination or pollution of, or the condition of, ground, soil, ground water, surface water or air
in breach of Environmental Law in the relevant jurisdiction caused by Hazardous Substances which have spread in the soil, air or water; 

Environmental Law means all Laws of any relevant jurisdiction in force at the Signing Date whose purpose is to protect or prevent
pollution of the Environment or to regulate emissions, discharges, or releases of Hazardous Substances into the Environment, or to regulate the use, treatment, storage, burial, disposal, transport or handling of Hazardous Substances; 

Environmental Permit means any license, permit, consent, authorisation, certificate, registration and exemption which is issued, granted
or required under Environmental Law which is material to the Business as on the Signing Date; 
 Equity Commitment Letters means the
binding and irrevocable equity commitment letters from the Fund Investors to the Purchasers and the Seller, confirming their irrevocable commitment to provide the Purchasers with the funding to complete the Transaction at Completion, executed copies
of which are attached as Schedule 18 (Equity Commitment Letter); 
 Escrow Account means the account with
the Escrow Agent, no. 0164000100000660346; 
 Escrow Agent means Industrial and Commercial Bank of China (Europe) S.A.; 

Escrow Agreement has the meaning set out in Clause 5.6.1; 

Estimated Net Debt means the Seller’s estimate of the Net Debt as at the Effective Time, as set out in the Estimated Net Debt
Statement; 
 Estimated Net Debt Adjustment means the amount by which the Estimated Net Debt is greater than the Reference Net Debt
(in which case that amount is expressed as a positive figure) or by which it is less than the Reference Net Debt (in which case that amount is expressed as a negative figure); 

  
 SALE AND PURCHASE AGREEMENT 

 Estimated Net Debt Statement means the statement to be prepared in accordance with Clause
5.9.1; 
 Estimated Purchase Price has the meaning set out in Clause 3.2.1; 

Estimated Statements means the Estimated Working Capital Statement and the Estimated Net Debt Statement; 

Estimated Working Capital means the Seller’s estimate of the Working Capital as at the Effective Time, as set out in the Estimated
Working Capital Statement; 
 Estimated Working Capital Adjustment means the amount by which the Estimated Working Capital is greater
than the Reference Working Capital (in which case that amount is expressed as a positive figure) or by which it is less than the Reference Working Capital (in which case that amount is expressed as a negative figure); 

Estimated Working Capital Statement means the statement to be prepared in accordance with Clause 5.9.1; 

Excluded Assets has the meaning set out in Paragraph 3.2 of Schedule 10 (Disentanglement Plan), and Excluded
Asset means any one of them or the relevant one of them, as the context requires; 
 Excluded Employees means: 

 

	 	(a)	certain engineers located at the Hamburg Site with in depth knowledge of special processes used for sensor wafer manufacturing; 

  

	 	(b)	certain engineers located at ATCB with in depth knowledge of assembly and test processes for sensor manufacturing; 

  

	 	(c)	certain employees of ATCB; and 

  

	 	(d)	certain employees of the Dedicated Companies primarily engaged in the businesses of the Seller’s Group other than the Business whom the Seller and the Purchasers jointly identify to be retained by the Seller’s
Group prior to Completion, 

 as listed in Schedule 13 (Excluded Employees). 

Excluded Liabilities has the meaning set out in Paragraph 3.4 of Schedule 10 (Disentanglement Plan), and
Excluded Liability means any one of them or the relevant one of them, as the context requires; 
 Funds means the parties
listed in the first column of Schedule 17 (The Funds); 

  
 SALE AND PURCHASE AGREEMENT 

 Fund Investors means the parties listed in the second column of Schedule 17 (The
Funds); 
 Fundamental Warranties means the warranties set forth in Paragraphs 2 and 3 of Schedule 7 (Seller’s
Warranties); 
 Governmental Authority means, to the extent it has jurisdiction in respect of the relevant matter, any judicial,
legislative, executive, regulatory or competition authority or any other governmental authority, of the Netherlands or any other jurisdiction, including of the European Union; 

Governmental Order means any final and non-appealable order, writ, judgment, injunction, decree,
declaration, stipulation, determination or award entered by or with any Governmental Authority; 
 Guarantee means any guarantee,
indemnity, surety, letter of comfort or other assurance, security, right of set-off, obligation to contribute (bijdrageplicht) or undertaking given by a Person to secure or support the obligations
(actual or contingent) of any other Person, whether given directly, by way of counter-indemnity or otherwise; 
 Hamburg Certified
Area has the meaning set out in Paragraph 2.1 of Schedule 23 (IT Separation and Hamburg Certified Area set up); 

Hamburg Certified Area Plan has the meaning set out in Paragraph 2.2 of Schedule 23 (IT Separation and Hamburg Certified Area
set up); 
 Hamburg Site means the real estate site located at Stresemannallee 101,
D-22529 Hamburg, Germany with deed numbers 4229 and 5142 and all buildings and fixtures located on this site, in each case owned by NXP Semiconductors Germany GmbH on the Signing Date; 

Hazardous Substances means, to the extent regulated by the applicable Environmental Authority, any wastes, pollutants, contaminants and
any other natural or artificial substance (whether in the form of a solid, liquid, gas or vapour) which is capable of causing harm or damage to the Environment; 

Insurance Policies means all insurance policies in effect at the Effective Time providing coverage to the Business maintained by any
member of the Seller’s Group, whether such policies are maintained with Third Party insurers or within the Seller’s Group, excluding any insurance policies maintained solely by any Target Group Company; 

Intellectual Property Rights has the meaning set out in the IP Transfer and License Agreement; 

  
 SALE AND PURCHASE AGREEMENT 

 Interest Rate means 4% (four percent) per annum compounded on a quarterly basis; 

Intragroup Payables means all amounts owed by a Target Group Company to any member of the Seller’s Group (excluding the Target
Group Companies) at the Effective Time, excluding the Promissory Note; 
 Intragroup Receivables means all amounts owed by any member
of the Seller’s Group (other than the Target Group Companies) to a Target Group Company at the Effective Time, excluding the Promissory Note; 

IP Sale and Purchase Agreement means the intellectual property sale and purchase agreement to be entered into between the Seller and the
Company prior to Completion, attached in Agreed Form in Schedule 20 (Agreed Form Ancillary Agreements); 
 IP Transfer and
License Agreement means the intellectual property transfer and license agreement to be entered into between the Seller and the Company prior to or at Completion, attached in Agreed Form in Schedule 20 (Agreed Form Ancillary
Agreements); 
 ITEC means the Industrial Technology & Engineering Center of the Seller’s Group located in Nijmegen,
the Netherlands and Hong Kong; 
 ITEC Equipment Support Services Agreement means the ITEC equipment support services agreement to be
entered into between the Seller and the Company prior to or at Completion, attached in Agreed Form in Schedule 20 (Agreed Form Ancillary Agreements); 

IT Milestones has the meaning set out in Paragraph 1.2 of Schedule 23 (IT Separation and Hamburg Certified Area set up);

 IT Separation has the meaning set out in Paragraph 6.6 of Schedule 10 (Disentanglement Plan); 

IT Separation Plan has the meaning set out in Paragraph 1.1 of Schedule 23 (IT Separation and Hamburg Certified Area set
up); 
 Key Employees means F. Scheper, E. Just, M. Roos, J. Lange, J. Humphreys, S. Hunkler, R. Buschke, G. Jansen, J. Zhao; 

Knowledge of the Seller or any similar expression means, with respect to any fact or matter, the actual knowledge of the Seller’s
transaction team comprising the persons listed Schedule 15 (Seller’s Knowledge persons) after having made due inquires with the management team of the Business and any other Key Employees; 

  
 SALE AND PURCHASE AGREEMENT 

 Late Filing Amounts has the meaning set out in Clause 5.7, and Late Filing Amount
means any one of them or the relevant one of them, as the context requires; 
 Law means any applicable statute, law, treaty,
ordinance, order, rule, directive, regulation, code, executive order, injunction, judgment, decree or other requirement of any Governmental Authority; 

Liabilities means all liabilities, duties and obligations of every description, whether deriving from Contract, common law, Law or
otherwise, whether known or unknown, present or future, actual or contingent, ascertained or unascertained, disputed or undisputed and whether owed or incurred severally or jointly or as principal or surety, and Liability means any one of
them or the relevant one of them, as the context requires; 
 Local Business Transfer Agreements means the local business transfer
agreements, local share transfer agreement, demerger, spin-off, contribution in kind and other similar agreements, documents or instruments to be entered into between a Target Group Company, on the one hand,
and a member of the Seller’s Group (excluding the Target Group Companies), on the other hand, pursuant to which the assets and liabilities attributable to the Business are to be transferred to the Target Group in order to effect the
Disentanglement, but excluding any Ancillary Agreement, and Local Business Transfer Agreement means any one of them or the relevant one of them, as the context requires; 

Losses means all damage, losses, Liabilities, costs (including reasonable legal costs and reasonable experts’ and consultants’
fees), charges, expenses, claims and demands assessed in accordance with 6:96 BW et seq.; 
 Manufacturing Services Agreement means
the manufacturing services agreement attached in Agreed Form in Schedule 20 (Agreed Form Ancillary Agreements); 
 Merger
Clearance Filings has the meaning set out in Clause 4.1(a); 
 Merger Clearance Remedies has the meaning set out in Clause 4.3.6;

 Mitigation Measures has the meaning set out in Clause 4.5.6; 

MOFCOM has the meaning set out in Clause 5.5.1; 

NDRC has the meaning set out in Clause 5.5.1; 

Net Debt means the amount of debt of the Target Group set out in the line items in Paragraph 2 of Schedule 3 (Completion
Statements) (expressed as a positive figure) less the amount of cash, cash equivalents and other financial 

  
 SALE AND PURCHASE AGREEMENT 

 
assets of the Target Group set out in the line items in Paragraph 2 of Schedule 3 (Completion Statements) as per the Effective Time, as finally agreed or determined between the
Seller and the Purchasers in accordance with Clause 7.3, excluding, for the avoidance of doubt, any item to be included in calculating the Working Capital and the Promissory Note; 

Net Debt Adjustment means the amount by which the Net Debt amount is greater than the Reference Net Debt amount (in which case
that amount is expressed as a positive figure) or by which it is less than the Reference Net Debt (in which case that amount is expressed as a negative figure); 

Net Debt Statement has the meaning set out in Clause 7.1.1(b); 

Non-Automatic Transfer Employees has the meaning set out in Paragraph 8.1 of Schedule 10
(Disentanglement Plan);  
 Non-Defaulting Party has the meaning set out in
Clause 6.4.1; 
 Non-Disclosure Agreement has the meaning set out in consideration (D) of
this agreement. 
 Non-Exclusive Contract means any Contract with Third Parties to which a
member of the Seller’s Group is a party and which relates in part to, or is used in part by, the Business to the extent in force and effect on the Completion Date; 

Non-Transferred Activities has the meaning set out in Paragraph 4.3 of Schedule 10
(Disentanglement Plan);  
 Notary means any civil law notary of Houthoff Buruma Coöperatief U.A., or such
notary’s substitute; 
 Notary Account means the third party notarial account of the Notary; 

Notary Letter means the notary letter to be agreed in good faith by and executed between the Notary, the Seller and the Purchasers in
accordance with Clause 5.12; 
 Notice has the meaning set out in Clause 16.16.1; 

Notice of Disagreement has the meaning set out in Clause 7.3(a); 

NXP Hong Kong means NXP Semiconductors Hong Kong Ltd; 

NXP Trademarks has the meaning set out in the IP Transfer and License Agreement; 

  
 SALE AND PURCHASE AGREEMENT 

 Orange Field of Business has the meaning set out in the IP Transfer and License Agreement;

 Out of Scope Activities has the meaning set out in Paragraph 4.3 of Schedule 10 (Disentanglement Plan); 

Overseas Investment Filings has the meaning set out in Clause 5.5.1; 

Parties means the Seller and the Purchasers, and Party means either of them or the relevant one of them, as the context requires;

 Pension Plans means the pension or retirement benefit plans of the Employees, excluding any mandatory plans, government plans or
statutory social security plans; 
 Pension Obligations means any pension, retirement benefits or similar benefits payable under the
Pension Plans on or following retirement, termination of employment, disability or death, for or in respect of any Employee or former employee of the Dedicated Companies, or their relevant spouse or dependants; 

Permitted Encumbrances means (a) Encumbrances for Taxes not due and payable (taking into account any extensions or other
arrangements with respect to payment that are permitted by applicable Governmental Authorities or contemplated under applicable Law) or for Taxes the validity of or amount of which is being contested by a members of the Seller’s Group in good
faith by appropriate actions, (b) Encumbrances of warehousemen, mechanics and materialmen and other similar statutory Encumbrances incurred in the ordinary course of business, (c) any Encumbrances that do not, individually or in the
aggregate, materially detract from the value of any of the applicable property, rights or assets of the businesses or materially interfere with the use thereof, and (d) zoning, entitlement, conservation, restriction or other land use regulation
by any Governmental Authority, and Permitted Encumbrance means any one of them or the relevant one of them, as the context requires; 

Person means an individual, a company or corporation, a partnership, a limited liability company, a trust, an association, a foundation
or other legal entity or unincorporated organisation, including a Governmental Authority; 

Pre-Completion Payables means all payables accrued or owed by any member of the Seller’s
Group (excluding the Target Group Companies) to suppliers in relation to ordinary course trading activities of the Business at or prior to the Effective Time; 

  
 SALE AND PURCHASE AGREEMENT 

 Pre-Completion Receivables means all receivables
accrued by, or prepaid or owed to, any member of the Seller’s Group (excluding the Target Group Companies) from customers in relation to ordinary course trading activities of the Business at or prior to the Effective Time; 

Products has the meaning set out in consideration (A); 

Promissory Note has the meaning set out in Paragraph 2.3(c) of Schedule 10 (Disentanglement Plan); 

Purchase Price has the meaning set out in Clause 3.1; 

Purchasers has the meaning set out in the recitals of this agreement; and Purchaser means any one of them or the relevant one of
them, as the context requires; 
 Purchasers’ Group means the Purchasers and if applicable the acquiring entity as referred to in
Clause 2.3.2 and their respective Affiliates from time to time; 
 Purchasers’ Warranties means the warranties provided by the
Purchasers to the Seller as included in Schedule 8 (Purchasers’ Warranties), and Purchasers’ Warranty means any one of them or the relevant one of them, as the context requires; 

Reference Net Debt means an amount of USD nil (zero US dollar); 

Reference Working Capital means an amount of USD 220,000,000 (two hundred and twenty million US dollars); 

Relevant Indemnified Party has the meaning set out in Clause 11.4; 

Relevant Indemnifying Party has the meaning set out in Clause 11.4; 

Relief means, unless the context otherwise requires, any allowance (including amortisation or depreciation), credit, deduction,
exemption or set-off in respect of any Tax or relevant to the computation of any income, profits or gains for the purposes of any Tax, or any right to repayment of or saving of Tax, and any reference to the
use or set off of Relief is to be construed accordingly; 
 Reporting Accountants means KPMG based in The Netherlands, or any other
firm of accountants to be agreed by the Seller and the Purchasers within five (5) Business Days of a Notice by the Seller to the Purchasers, or vice versa, requiring such agreement; 

  
 SALE AND PURCHASE AGREEMENT 

 Representative means any director, officer, employee, legal advisor, financial advisor,
accountant or other agent, of any Person concerned; 
 Restricted Activity means the business of researching, designing, developing,
testing, manufacturing, commercializing, packaging, marketing, distributing, selling and servicing discrete semiconductor devices, low complexity ICs and integrated passives as conducted immediately prior to the Completion Date by the following NXP
business lines: (i) BL GA Discretes, (ii) BL PowerMOS and (iii) BL Logic, a representative list of such products being included in Schedule 10 to the IP Transfer and License Agreement. For the avoidance of doubt, any business (e.g. in
respect of the small PowerMOS eSwitch discretes) historically conducted by Freescale Semiconductor does not form part of the Restricted Activity; 

Restricted Employees means the Key Employees and the employees set out in Schedule 12 (Restricted Employees); 

Restricted Period means three (3) years commencing on the Completion Date; 

Retained Intellectual Property has the meaning set out in the IP Transfer and License Agreement; 

SAFE has the meaning set out in Clause 5.5.1; 

Section 721 has the meaning set out in Clause 4.1(d)(i); 

Seller has the meaning set out in the recitals of this agreement; 

Seller’s Group means the Seller and its Affiliates collectively from time to time, excluding, from and after Completion, the Target
Group Companies; 
 Seller’s Warranties means the warranties provided by the Seller to the Purchasers as included in Schedule
7 (Seller’s Warranties), and Seller’s Warranty means any one of them or the relevant one of them, as the context requires; 

Shares has the meaning set out in recital (B) of this agreement; 

Shareholder Loan has the meaning set out in Clause 2.5.1; 

Signing means the signing by the Parties of this agreement; 

Signing Date means the day on which the last of the Parties has signed this agreement; 

Software has the meaning set out in the IP Transfer and License Agreement; 

  
 SALE AND PURCHASE AGREEMENT 

 Statements means the Working Capital Statement and the Net Debt Statement; 

Sub-Licensable Licensed-In Third Party IP has the
meaning set out in the IP Transfer and License Agreement; 
 Tangible Assets means the machinery, materials, prototypes, tools,
supplies, furniture, fixtures, improvements, vehicles, equipment and all other tangible assets, but excluding any real property, inventory and IT assets; 

Target Group or Target Group Companies means the Company and all Affiliates of the Company that are Controlled by the Company
from time to time, and includes, with respect to any period prior to Completion, the Dedicated Companies, and Target Group Company means any one of them or the relevant one of them, as the context requires; 

Taxation or Tax means all forms of taxation whether direct or indirect and whether levied by reference to income, profits, gains,
net wealth, asset values, turnover, added value or other reference and statutory, fiscal state aid, governmental, state, provincial, local governmental or municipal impositions, duties, contributions, rates and levies (including social security
contributions and any other payroll taxes), whenever and wherever imposed (whether imposed by way of a withholding or deduction or otherwise) and in respect of any Person as well as all interest and penalties relating thereto; 

Tax Audit means any audit, investigation, visit, inspection, assessment, discovery, access order, or other proceedings from any Tax
Authority with respect to any Tax matter of a Target Group Company; 
 Tax Authority means any taxing or other authority competent to
impose any liability in respect of Taxation or responsible for the administration or administration and collection of Taxation, or enforcement of any Law in relation to Taxation; 

Tax Benefit means: 
  

	 	(a)	any Tax Refund actually received by a Target Group Company or a member of the Purchasers’ Group; 

  

	 	(b)	any reduction of Tax due by a Target Group Company or a member of the Purchasers’ Group; and 

  

	 	(c)	 the net present value of any future Relief, including, but not limited, to a Relief in the form of additional
depreciation or amortisation allowances, at the level of any Target Group Company or member of Purchaser’s 

  
 SALE AND PURCHASE AGREEMENT 

	 	
Group. The net present value of a future Relief will be calculated (i) using a discount rate equal to the Interest Rate, (ii) as per the date any amount is due in respect of the
relevant claim, and (iii) on the basis of the then prevailing corporate income tax rates; 

 Tax Claim means any
claim under the Tax Indemnity or for breach of the Tax Warranties; 
 Tax Deduction means any deduction or withholding for or on
account of Tax; 
 Tax Indemnity means the indemnity relating to Taxation set out in Paragraph 2 of Schedule 9 (Tax);

 Tax Refund means a rebate, refund or repayment in respect of Tax; 

Tax Return means any return, declaration, report or information relating to Taxes, including any schedule or attachments thereto, and
including any amendment thereof; 
 Tax Warranties means the warranties set out in Paragraph 11 of Schedule 7 (Seller’s
Warranties); 
 Technology has the meaning set out in the IP Transfer and License Agreement; 

Third Party means any Person not being an Affiliate of either the Seller or the Purchasers; 

Third-Party Claim has the meaning set out in Clause 11.4; 

Third Party Consents means all consents, licences, approvals, permits, authorisations or waivers required from Third Parties in order to
complete the Disentanglement in all materials respects, and Third Party Consent means any one of them or the relevant one of them, as the context requires; 

Trademarks And Domain Names Sale Agreement means the Trademarks And Domain Names Sale Agreement attached in Agreed Form in Schedule
20 (Agreed Form Ancillary Agreements); 
 Transaction has the meaning set out in recital (J) of this agreement; 

Transferred Inventory means all raw materials, finished goods, dies, semi-finished goods, work in progress and goods in transit
attributable to the Business, net of obsolescence/other inventory related provisions, on the basis of the Seller’s internal reporting systems at the Effective Time, provided that inventory subject to the MSA will be allocated in accordance with
the supply model as set out in the MSA; 

  
 SALE AND PURCHASE AGREEMENT 

 Transferred IT Assets means (a) personal workplace hardware (e.g., laptops, desktops,
telephones and mobile phones) used by the Employees, (b) manufacturing IT equipment located on the Transferred Properties to the extent used exclusively to manage the manufacturing activities of the Business, (c) manufacturing datacentres
located on the Transferred Properties to the extent used exclusively for the applications and data storage of the Business, and (d) networking equipment and printers used exclusively by the Business, in each case to the extent owned or leased
by any member of the Seller’s Group at the Effective Time and subject to Paragraph 2 of Schedule 23 (IT Separation and Hamburg Certified Area set up); 

Transferred Trademarks has the meaning set out in the IP Transfer and License Agreement; 

Transferred Patents has the meaning set out in the IP Transfer and License Agreement; 

Transferred Properties means the property listed in Schedule 11 (Transferred Property), and Transferred Property
means any one of them or the relevant one of them, as the context requires; 
 USD or US dollar means the lawful currency of
the United States of America; 
 U.S. Business has the meaning set out in Clause 4.5.6; 

US GAAP means the generally accepted accounting principles adopted by the U.S. Securities and Exchange Commission;

 VAT means within the European Union any Tax as may be levied in accordance with (but subject to derogations from) the Directive
2006/112/EC and outside the European Union any Tax levied by reference to added value, sales or consumption; 
 WOR means Dutch Works
Council’s Act (Wet op de Ondernemingsraden); 
 Working Capital means the amount of the net working capital of the Target
Group as per the Effective Time based on the line items set out in Paragraph 1 of Schedule 3 (Completion Statements), as finally agreed or determined between the Seller and the Purchasers in accordance with Clause 7.3, excluding, for
the avoidance of doubt, any item to be included in calculating the Net Debt and the Promissory Note; 

  
 SALE AND PURCHASE AGREEMENT 

 Working Capital Adjustment means the amount by which the amount equal to the Working
Capital is greater than the Reference Working Capital (in which case that amount is expressed as a positive figure) or by which it is less than the Reference Working Capital (in which case that amount is expressed as a negative figure); and 

Working Capital Statement has the meaning set out in Clause 7.1.1(a). 

 

	2	Headings and references to Clauses, Schedules and Paragraphs 

  

	2.1	Headings have been inserted for convenience of reference only and do not affect the interpretation of any of the provisions of this agreement. 

 

	2.2	A reference in this agreement to: 

  

	 	(a)	a Clause is to the relevant clause of this agreement; 

  

	 	(b)	a Schedule is to the relevant schedule to this agreement; and 

  

	 	(c)	a Paragraph is to the relevant paragraph of the relevant Schedule. 

  

	3	References to rights, liabilities and obligations 

  

	3.1	Any reference in this agreement to a liability or obligation of (any member of) the Seller’s Group is deemed to incorporate references to obligations on the part of the Seller to procure that the relevant
liability is discharged or obligation is performed by the relevant member(s) of the Seller’s Group (including the Target Group Companies until Completion), on the terms of and subject to the conditions set out in this agreement.

  

	3.2	Any reference in this agreement to a liability or obligation of (any member of) the Purchasers’ Group or the Target Group post-Completion) is deemed to incorporate a reference to an obligation on the part of
the Purchasers to procure that the relevant liability is discharged or obligation is performed by the relevant member(s) of the Purchasers’ Group (including the Target Group Companies post-Completion), on the terms of and subject to the
conditions set out in this agreement. 

  

	3.3	The Purchasers are jointly and severally liable (hoofdelijk aansprakelijk) for all Purchasers’ obligations under this agreement. 

 

	3.4	Each of the Purchasers will be deemed to act on behalf of both Purchasers in the exercise of any rights that the Purchasers may have under this agreement, unless explicitly indicated otherwise. 

  
 SALE AND PURCHASE AGREEMENT 

	4	Information 

 References to books, records or other information include books, records or
other information stored in any form, including paper, magnetic media, films, microfilms, electronic storage devices and any other data carriers. 
  

	5	Legal terms 

 In respect of any jurisdiction other than the Netherlands, a reference to
any Netherlands legal term is to be construed as a reference to the term or concept which most nearly corresponds to it in that jurisdiction. 
  

	6	Other references 

  

	6.1	Whenever used in this agreement, the words “include”, “includes” and “including” are to be deemed to be followed by the phrase “without limitation”. 

 

	6.2	Whenever used in this agreement, the words “as of” include the day or moment in time specified thereafter. 

  

	6.3	Any reference in this agreement to any gender includes all genders, and words importing the singular shall include the plural and vice versa. 

 

	7	No presumption against drafting Party 

 The Parties agree that they have been represented
by counsel during the negotiation and execution of this agreement and, therefore, waive the application of any Law or rule of construction providing that ambiguities in an agreement or other document are to be construed against the party drafting
that agreement or document. 

  
 SALE AND PURCHASE AGREEMENTUse these links to rapidly review the document

  TABLE OF CONTENTS 

  TABLE OF CONTENTS

Table of Contents 

 
 

  Exhibit 4.7    
    

        Filed Pursuant to Rule 424(b)(5)

Registration No.: 333-211029  

 Prospectus Supplement

(To prospectus dated April 29, 2016)  

€500,000,000  

Avery Dennison Corporation  

1.250% Senior Notes due 2025

  

        We are offering €500,000,000 aggregate principal amount of 1.250% Senior Notes due 2025. Interest on the notes will be payable
annually in arrears on March 3 of each year, beginning March 3, 2018. The notes will mature on March 3, 2025 unless redeemed prior to that date. We may redeem all or part of the
notes at any time or from time to time prior to maturity at the redemption price specified in this prospectus supplement. In the event of a Change of Control Triggering Event as described herein, the
holders of the notes may require us to purchase all or part of their notes at the purchase price specified in this prospectus supplement. 

        The
notes will be our unsecured and unsubordinated obligations and will rank equally with all of our other unsecured and unsubordinated indebtedness and other liabilities from time to
time outstanding. The notes will be structurally subordinated to all indebtedness and other liabilities of our subsidiaries. 

  

        The
notes are new issues of securities with no established trading market. Currently, there is no public market for the notes. We intend to apply to list the notes on the New York Stock
Exchange, or the NYSE. The notes will be issued in minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof. 

        Investing in the notes involves risks that are described in the "Risk Factors" section of this prospectus supplement beginning on page S-7
of this prospectus supplement.  

 

 
							
	 
	 	 	 	 	 	 
	 
	 
	 	Public offering

price(1)
	 	Underwriting

discount
	 	Proceeds, before

expenses

	 
	 Per note
	 	99.917%	 	0.550%	 	99.367%
	 
	 Total
	 	€499,585,000	 	€2,750,000	 	€496,835,000
	  

	(1)
	Plus
accrued interest from March 3, 2017, if settlement occurs after that date.  

        Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined that this
prospectus supplement or the accompanying prospectus is accurate or complete. Any representation to the contrary is a criminal offense.

        Delivery
of the notes will be made in book-entry form only. The notes will be delivered on or about March 3, 2017 through the facilities of Clearstream Banking,
société anonyme, and Euroclear Bank S.A./N.V. against payment in New York, New York. 

  

Joint Book-Running Managers

 

 
 

					
	BofA Merrill Lynch	 	 HSBC	 	 J.P. Morgan

 

 Co-Managers  

 

 
 

			
	MUFG	 	Standard Chartered Bank

 

 

 
 

					
	
Mizuho Securities	
 	
SMBC Nikko	
 	
Wells Fargo Securities

 

   

   

  
The date of this prospectus supplement is February 24, 2017. 

 

Table of Contents 

 

 

        You should rely only on the information contained or incorporated or deemed to be incorporated by reference in this prospectus supplement,
the accompanying prospectus and any free writing prospectus that we may provide to you. Neither we nor the underwriters have authorized any other person to provide you with different information. If
anyone provides you with different or inconsistent information, you should not rely on it. Neither we nor the underwriters are making an offer to sell these securities in any jurisdiction where the
offer or sale is not permitted. You should assume that the information appearing in this prospectus supplement, the accompanying prospectus and any free writing prospectus is accurate as of the date
on its respective cover, and that any information incorporated by reference is accurate only as of the date of the document incorporated by reference, unless we indicate otherwise. Our business,
financial condition, results of operations, cash flows and prospects may have changed since those dates. 

 

  Table of Contents    
    

    Prospectus Supplement    
    

 

 

 
 

					
	 
	 	Page 	 
	 About this Prospectus Supplement
	 	 	S-ii	 
	 Forward-Looking Statements
	 	 	S-iv	 
	 Incorporation of Documents by Reference
	 	 	S-v	 
	 Summary
	 	 	S-1	 
	 The Offering
	 	 	S-2	 
	 Summary Financial Data
	 	 	S-6	 
	 Risk Factors
	 	 	S-7	 
	 Use of Proceeds
	 	 	S-12	 
	 Currency Conversion
	 	 	S-13	 
	 Capitalization
	 	 	S-14	 
	 Description of the Notes
	 	 	S-15	 
	 Certain ERISA Considerations
	 	 	S-36	 
	 Material U.S. Federal Income Tax Consequences
	 	 	S-38	 
	 Underwriting
	 	 	S-44	 
	 Legal Matters
	 	 	S-49	 
	 Experts
	 	 	S-49	 
	 Prospectus
	 
	 About this Prospectus
	 	 	

1	 
	 Risk Factors
	 	 	1	 
	 Where You Can Find More Information
	 	 	2	 
	 Incorporation of Certain Documents by Reference
	 	 	3	 
	 Forward-Looking Statements
	 	 	4	 
	 Avery Dennison Corporation
	 	 	5	 
	 Ratio of Earnings to Fixed Charges
	 	 	5	 
	 Use of Proceeds
	 	 	5	 
	 Description of Securities
	 	 	6	 
	 Description of Common Stock and Preferred Stock
	 	 	6	 
	 Validity of the Securities
	 	 	9	 
	 Experts
	 	 	9	 

 

 S-i

 

Table of Contents 

 
 

  About this Prospectus Supplement    
    

        This document is in two parts. The first part, which is the prospectus supplement, describes the specific terms of this offering and the notes
offered. The second part, which is the accompanying prospectus, gives more general information, some of which may not apply to this offering. If the description of the offering varies between this
prospectus supplement and the accompanying prospectus, you should rely on the information in this prospectus supplement. 

        Before
purchasing any of the notes, you should carefully read both this prospectus supplement and the accompanying prospectus, together with the additional information described in this
prospectus supplement under "Incorporation of Documents by Reference" and in the accompanying prospectus under "Where You Can Find More Information" and "Incorporation of Documents by Reference." 

        You
should rely only on the information we provide or incorporate by reference in this prospectus supplement and the accompanying prospectus. Neither we nor the underwriters have
authorized any other person to provide you with different information. We are offering to sell the notes offered by this prospectus supplement, and seeking offers to buy the notes, only in
jurisdictions where offers and sales are permitted. The information contained in this prospectus supplement is accurate only as of the date of this prospectus supplement, regardless of the time of
delivery of this prospectus supplement or any sales of the notes. The information contained in any document incorporated or deemed incorporated by reference is accurate as of the date of the
applicable document. 

        References
to the "Company", "we," "our" and "us" and similar terms mean Avery Dennison Corporation and its subsidiaries, unless the context otherwise requires. References to "Avery
Dennison" mean Avery Dennison Corporation, unless the context otherwise requires. 

        References
in this prospectus supplement and the accompanying prospectus to "$" and "U.S. dollars" are to the currency of the United States. References to "€" and "euros"
in this prospectus supplement are to the currency of the member states of the European Monetary Union that have adopted or that adopt the single currency in accordance with the treaty establishing the
European Community, as amended by the Treaty on European Union. No representation is made that any euro amounts converted into U.S. dollars as presented in this prospectus supplement could have been
or could be converted into U.S. dollars at any such exchange rate or at all. The financial information presented in this prospectus supplement and the accompanying prospectus has been prepared in
accordance with generally accepted accounting principles in the United States, or GAAP. 

        IN
CONNECTION WITH THE ISSUANCE OF THE NOTES, J.P. MORGAN SECURITIES PLC (IN THIS CAPACITY, THE "STABILIZING MANAGER") (OR ANY PERSON ACTING ON ITS BEHALF) MAY OVER-ALLOT NOTES OR
EFFECT TRANSACTIONS WITH A VIEW TO SUPPORTING THE MARKET PRICE OF THE NOTES AT A LEVEL HIGHER THAN THAT WHICH MIGHT OTHERWISE PREVAIL. HOWEVER, STABILIZATION MAY NOT NECESSARILY OCCUR. ANY
STABILIZATION ACTION MAY BEGIN ON OR AFTER THE DATE ON WHICH ADEQUATE PUBLIC DISCLOSURE OF THE FINAL TERMS OF THE OFFER OF THE NOTES IS MADE, AND, IF BEGUN, MAY CEASE AT ANY TIME, BUT IT MUST END NO
LATER THAN THE EARLIER OF 30 DAYS AFTER THE ISSUANCE OF THE NOTES AND 60 DAYS AFTER THE DATE OF THE ALLOTMENT OF THE NOTES. SEE "UNDERWRITING." ANY STABILIZATION ACTION COMMENCED MUST BE
CARRIED OUT IN ACCORDANCE WITH APPLICABLE LAWS AND REGULATIONS. 

        It
is expected that delivery of the notes will be made against payment therefor on or about March 3, 2017, which will be the fifth business day following the date of pricing of
the notes (such settlement cycle being herein referred to as T+5). Purchasers of notes should be aware that the ability to settle secondary market trades of the notes effected on the date of pricing
may be affected by the T+5 settlement. 

S-ii

 

Table of Contents

Notice to Prospective Investors in the European Economic Area  

        This prospectus supplement and the accompanying prospectus have been prepared on the basis that any offer of notes in any Member State of the
European Economic Area (the "EEA") that has implemented the Prospectus Directive (2003/71/EC) (and amendments thereto, including Directive 2010/73/EU) (the "Prospectus Directive") (each,
a "Relevant Member State") will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to produce a prospectus for offers
of notes. Accordingly, any person making or intending to make any offer in that Relevant Member State of notes which are the subject of the offering contemplated by this prospectus supplement and the
accompanying prospectus may only do so in circumstances in which no obligation arises for us or any of the underwriters to produce a prospectus pursuant to Article 3 of the Prospectus Directive
in relation to such offer. Neither we nor the underwriters have authorized, nor do we or they authorize, the making of any offer of notes in circumstances in which an obligation arises for us or the
underwriters to produce a prospectus for such offer. 

Notice to Prospective Investors in the United Kingdom  

        This prospectus supplement and accompanying prospectus are only being distributed to, and are only directed at, persons in the United Kingdom
that are (1) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (2) high net
worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (each such person being referred to as a "Relevant
Person"). This prospectus supplement and accompanying prospectus and their contents are confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed by
recipients to any other persons in the United Kingdom. Any person in the United Kingdom that is not a Relevant Person should not act or rely on this prospectus supplement and/or accompanying
prospectus or any of their contents. 

        This
prospectus supplement and the accompanying prospectus have not been approved for the purposes of section 21 of the UK Financial Services and Markets Act 2000 ("FSMA") by a
person authorized under FSMA. This prospectus supplement and the accompanying prospectus are being distributed and
communicated to persons in the United Kingdom only in circumstances in which section 21(1) of FSMA does not apply. 

S-iii

 

Table of Contents

 
 

  Forward-Looking Statements    
    

        This prospectus supplement and the accompanying prospectus and the information incorporated or deemed incorporated herein and therein by
reference may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which are not statements of historical fact, contain
estimates, assumptions, projections and/or expectations regarding future events, which may or may not occur. Words such as "aim," "anticipate," "assume," "believe," "continue," "could," "estimate,"
"expect," "foresee," "guidance," "intend," "may," "might," "objective," "plan," "potential," "project," "seek," "shall," "should," "target," "will," "would," or variations thereof, and other
expressions that refer to future events and trends, identify forward-looking statements. These forward-looking statements, and financial or other business targets, are subject to certain risks and
uncertainties, which could cause our actual results to differ materially from the expected results, performance or achievements expressed or implied by such forward-looking statements. 

        Certain
risks and uncertainties are discussed in more detail under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our
Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and include, but are not limited to, risks and uncertainties relating to the following: fluctuations in demand
affecting sales to customers; worldwide and local economic conditions; changes in political conditions; changes in governmental laws and regulations; fluctuations in currency exchange rates and other
risks associated with foreign operations, including in emerging markets; the financial condition and inventory strategies of customers; changes in customer preferences; fluctuations in cost and
availability of raw materials; our ability to generate sustained productivity improvement; our ability to achieve and sustain targeted cost reductions; the impact of competitive products and pricing;
loss of significant contracts or customers; collection of receivables from customers; selling prices; business mix shift; execution and integration of acquisitions and completion of potential
dispositions; timely development and market acceptance of new products, including sustainable or sustainably-sourced products; investment in development activities and new production facilities;
amounts of future dividends and share repurchases; customer and supplier concentrations; successful implementation of new manufacturing technologies and installation of manufacturing equipment;
disruptions in information technology systems including cyber-attacks or other intrusions to network security; successful installation of new or upgraded information technology systems; data security
breaches; volatility of financial markets; impairment of capitalized assets, including goodwill and other intangibles; credit risks; our ability to obtain adequate financing
arrangements and maintain access to capital; fluctuations in interest and tax rates; changes in tax laws and regulations, and uncertainties associated with interpretations of such laws and
regulations; outcome of tax audits; fluctuations in pension, insurance, and employee benefit costs; the impact of legal and regulatory proceedings, including with respect to environmental, health and
safety; protection and infringement of intellectual property; the impact of epidemiological events on the economy and our customers and suppliers; acts of war, terrorism, and natural disasters; and
other factors. 

        We
believe that the most significant risk factors that could affect our financial performance in the near-term include: (1) the impacts of global economic conditions and political
uncertainty on underlying demand for our products and foreign currency fluctuations; (2) competitors' actions, including pricing, expansion in key markets, and product offerings; (3) the
degree to which higher costs can be offset with productivity measures and/or passed on to customers through selling price increases, without a significant loss of volume; and (4) the execution
and integration of acquisitions. 

        The
forward-looking statements included in this prospectus supplement, the accompanying prospectus and the documents incorporated and deemed incorporated by reference herein and therein,
are made only as of their respective dates, and we assume no duty to update the forward-looking statements to reflect new, changed or unanticipated events or circumstances, other than as may be
required by law. 

S-iv

 

Table of Contents

 
 

  Incorporation of Documents by Reference    
    

        The rules of the U.S. Securities and Exchange Commission (the "SEC") allow us to "incorporate by reference" information into this prospectus
supplement, which means that we can disclose important information to you by referring you to another document filed separately with the SEC. The information incorporated by reference is deemed to be
part of this prospectus supplement, and later information that we file with the SEC will automatically update and supersede that information. Any statement contained in a previously filed document
incorporated by reference shall be deemed to be modified or superseded for purposes of this prospectus supplement to the extent that a statement contained in this prospectus supplement modifies or
replaces that statement. We incorporate by reference our documents listed below and any future filings made by us with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") between the date of this prospectus supplement and the termination of the offering of the notes described in this prospectus supplement. We are
not, however, incorporating by reference any
documents or portions thereof, whether specifically listed below or filed in the future, that are not deemed "filed" with the SEC:

	•
	 our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (including information specifically incorporated by
reference therein from our Annual Report to shareholders for the fiscal year ended December 31, 2016); 

	•
	 our Definitive Proxy Statement on Schedule 14A dated March 8, 2016 (but only with respect to information required by
Part III of our Annual Report on Form 10-K for the fiscal year ended January 2, 2016); and 

	•
	 our Current Report on Form 8-K filed with the SEC on February 3, 2017. 

        You
may request a free copy of any of the documents incorporated by reference in this prospectus supplement (other than exhibits, unless they are specifically incorporated by reference
in the documents) by writing or telephoning us at the following address: 

Corporate Secretary

Avery Dennison Corporation

207 Goode Avenue

Glendale, California 91203

(626) 304-2000  

S-v

 

Table of Contents 

 

  
 

  Summary    
    

        In this summary, we have highlighted certain information in this prospectus supplement and the accompanying prospectus.
This summary may not contain all of the information that is important to you. To understand the terms of the notes, as well as the considerations that are important to you in making your investment
decision, you should carefully read this entire prospectus supplement and the accompanying prospectus including the discussion under "Risk Factors" in this prospectus supplement and Part I,
Item IA. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, to determine whether an investment in the notes is appropriate for you. You
should also read the documents we referred to under "Incorporation of Documents by Reference" in this prospectus supplement.

 
 

  Avery Dennison Corporation    
    

        We are a recognized industry leader that develops innovative identification and decorative solutions for businesses and consumers worldwide.
Headquartered in Glendale, California, we are a FORTUNE 500 Company with net sales of approximately $6.1 billion for the fiscal year ended December 31, 2016. As of December 31,
2016, we had over 25,000 employees in over 50 countries who develop, manufacture and market a wide range of products for both consumer and industrial markets. Our businesses include the production of
pressure-sensitive materials and a variety of tickets, tags, labels and other converted products. Some pressure-sensitive materials are sold to label printers and converters that convert the materials
into labels and other products through embossing, printing, stamping and die-cutting. Some materials are sold by us in converted form as tapes and reflective sheeting. We also manufacture and sell a
variety of other converted products and items not involving pressure-sensitive components, such as fasteners, tickets, tags, radio-frequency identification inlays and tags, and imprinting equipment
and related services, which we market to retailers, apparel manufacturers and brand owners. 

        In
December 2016, we agreed to acquire Hanita Coatings, a pressure-sensitive materials manufacturer of specialty films and laminates from Kibbutz Hanita Coatings and Tene Investment
Funds for the purchase price of $75 million, subject to customary adjustments. This acquisition is expected to close in the first quarter of 2017, subject to customary closing conditions. 

        In
February 2017, we announced our agreement to acquire Yongle Tape Company Ltd. ("Yongle Tape Company"), a manufacturer of specialty tapes and related products used in a variety
of industrial markets from Yongle Tape Company's management and ShawKwei & Partners for the purchase price of $190 million, subject to customary adjustments, with additional earnouts of
up to $55 million to be paid based on the achievement of certain performance targets over the next two years. This acquisition is expected to close in mid-2017, subject to customary closing
conditions. 

        Avery
Dennison is a Delaware corporation whose principal executive offices are located at 207 Goode Avenue, Glendale, California 91203. Our main telephone number is
(626) 304-2000. Our website address is www.averydennison.com. The information on or accessible from our website is not and should not be
considered part of, nor is it incorporated by reference into, this prospectus supplement or the accompanying prospectus. 

 

 S-1

 

Table of Contents

 

 
 

  The Offering    
    

 

 
 

			
	Issuer	 	Avery Dennison Corporation, a Delaware corporation
	
Securities offered	
 	
€500,000,000 aggregate principal amount of 1.250% Senior Notes due 2025.
	
Maturity	
 	
The notes will mature on March 3, 2025.
	
Interest rate	
 	
The notes will bear interest at a rate of 1.250% per year.
	
Interest payment dates	
 	
Interest on the notes will be payable annually on March 3 of each year, commencing on March 3, 2018. Interest will accrue from the issue date of the notes.
	
Currency of Payment	
 	
All payments of interest, premium, if any, principal, including payments made upon any redemption of the notes, and additional amounts, if any, will be made in euros. If the euro is unavailable to us
due to the imposition of exchange controls or other circumstances beyond our control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of
transactions by public institutions of or within the international banking community, then all payments in respect of the notes will be made in U.S. dollars until the euro is again available to us or so used. The amount payable on any date in euros
will be converted into U.S. dollars on the basis of the most recently available market exchange rate for the euro. Any payments in respect of the notes so made in U.S. dollars will not constitute an event of default under the terms of the notes or
the indenture. See "Description of the Notes—Issuance in Euros; Payment on the Notes."
	
Optional redemption	
 	
At our option, we may redeem the notes, in whole or in part, at any time or from time to time at a redemption price equal to the greater of (a) 100% of the principal amount of the notes to be
redeemed and (b) a "make-whole" amount described elsewhere in this prospectus supplement, plus in either case accrued and unpaid interest to, but not including, the redemption date; provided, however, that if we redeem any notes on or after
December 3, 2024 (the date falling three months prior to the maturity date of the notes), the redemption price for the notes will be equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but not
including, the redemption date. See "Description of the Notes—Optional Redemption."
	
Change of control offer	
 	
In the event of a Change of Control Triggering Event as described herein, we will be required to offer to repurchase the notes at a price equal to 101% of the principal amount thereof, plus accrued and
unpaid interest to, but not including, the repurchase date. See "Description of the Notes—Change of Control Offer."

 

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	Additional Amounts	 	We will, subject to certain exceptions and limitations, pay additional amounts on the notes to holders who are not U.S. Persons (as defined under "Description of the Notes—Payment of Additional
Amounts") in respect of any required withholding or deduction for any present or future tax, assessment or other governmental charge imposed by the United States or any political subdivision or taxing authority of or in the United States, as will
result in receipt by holders of notes that are not U.S. Persons of such amounts as they would have received had no such withholding or deduction been required. See "Description of the Notes—Payment of Additional Amounts."
	
Redemption for Tax Reasons	
 	
We may redeem all but not part of the notes in the event of certain changes in the tax laws of the United States that would require us to pay additional amounts as described under "Description of the
Notes—Payment of Additional Amounts." This redemption would be at 100% of the principal amount, together with accrued and unpaid interest on the notes to, but not including, the date fixed for redemption. See "Description of the
Notes—Redemption for Tax Reasons."
	
Ranking	
 	
The notes will:
	 
	 	

    •
 rank equally and ratably
with all of our other existing and future unsecured and unsubordinated indebtedness and other liabilities;

	 
	 	

    •
 rank senior in right of
payment to all of our existing and future subordinated indebtedness, if any;

	 
	 	

    •
 be effectively junior to
all of our future secured indebtedness, if any, to the extent of the value of the assets securing such indebtedness; and

	 
	 	

    •
 be structurally
subordinated to all existing and future indebtedness and other liabilities of our subsidiaries.

	

 	
 	
As of December 31, 2016, our subsidiaries had approximately $556 million of indebtedness and capitalized lease obligations. As of December 31, 2016, as adjusted to give effect to this
offering and the repayment of approximately €200 million of commercial paper borrowings as described under "Use of Proceeds," we had indebtedness and capitalized lease obligations of approximately $1.6 billion and no outstanding
secured indebtedness.
	
Covenants	
 	
The indenture contains covenants that, among other things, restrict our ability to:
	 
	 	

    •
 incur debt secured by
liens; and

	 
	 	

    •
 enter into sale and
leaseback transactions.

	

 	
 	
These covenants are, however, subject to significant exceptions. See "Description of the Notes—Covenants."

 

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	 	 	The indenture governing the notes will otherwise permit us to incur additional indebtedness. In addition, our subsidiaries may also create and issue debt securities that will be structurally senior to the
notes.
	
Further issues	
 	
We may from time to time, without notice to or the consent of the holders of the notes, create and issue additional debt securities having the same terms as and ranking equally and ratably with the
notes in all respects, as described under "Description of the Notes—Further Issues," provided that if any such additional notes are not fungible with the notes offered hereby for U.S. federal income tax purposes, such additional notes will be
issued under a different CUSIP number.
	
Form and denomination	
 	
The notes will be issued in fully registered form in denominations of €100,000 and integral multiples of €1,000 in excess thereof.
	
Book-entry form	
 	
The notes will be issued in book-entry form and will be represented by permanent global certificates deposited with a common depositary on behalf of Clearstream Banking, société anonyme,
and Euroclear Bank S.A./N.V. and registered in the name of the common depositary or its nominee. Beneficial interests in the notes will be shown on, and transfers will be effected only through, records maintained by the common depositary or its
nominee; and these interests may not be exchanged for certificated notes, except in limited circumstances. See "Description of the Notes—Book-Entry Procedures."
	
Use of proceeds	
 	
We estimate that we will receive net proceeds from this offering of approximately €495.6 million, after deducting underwriting discounts and estimated offering expenses.
	

 	
 	
We intend to use approximately €200 million of the net proceeds of the offering to repay indebtedness incurred to finance a portion of our acquisition of the European business of Mactac in
August 2016. We intend to use the remainder of the net proceeds of the offering for general corporate purposes. These purposes may include the repayment of other indebtedness, including our 6.625% Guaranteed Notes due 2017, acquisitions, including
the acquisitions of Hanita Coatings and Yongle Tape Company, capital expenditures, working capital and any other corporate purpose.
	
Listing	
 	
We intend to apply to list the notes on the NYSE. The listing application will be subject to approval by the NYSE. We currently expect trading in the notes on the NYSE to begin within 30 days
after the original issue date. If such a listing is obtained, we have no obligation to maintain such listing and we may delist the notes at any time.
	
Paying Agent	
 	
The Bank of New York Mellon, London Branch

 

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	Trustee, Registrar and Transfer Agent	 	The Bank of New York Mellon Trust Company, N.A.
	
Governing Law	
 	
The notes and the indenture under which they will be issued will be governed by New York law.
	
CUSIP	
 	
053611 AH2
	
ISIN	
 	
153392226
	
Common Code	
 	
XS1533922263
	
Risk factors	
 	
You should carefully consider all of the information in this prospectus supplement and the accompanying prospectus. See "Risk Factors" in this prospectus supplement, and Part I, Item 1A.
"Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which is incorporated herein by reference. See also "Forward-Looking Statements."

 

         For
a complete description of the terms of the notes, see "Description of the Notes." 

 

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  Summary Financial Data    
    

        The following table presents our summary historical consolidated financial data as of the dates and for the periods indicated. The consolidated
balance sheet data as of December 31, 2016 and January 2, 2016, and statement of income data for each of the three fiscal years ended December 31, 2016, January 2, 2016 and
January 3, 2015 are derived from our audited consolidated financial statements incorporated by reference into this prospectus supplement, which have been audited by
PricewaterhouseCoopers LLP, independent registered public accounting firm. The consolidated balance sheet data as of January 3, 2015 are derived from our audited consolidated financial
statements not incorporated by reference into this prospectus supplement. You should read this information in conjunction with the consolidated financial statements and related notes and "Management's
Discussion and Analysis of Results of Operations and Financial Condition" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which is incorporated by
reference into this prospectus supplement. Our historical results of operations are not necessarily indicative of future results of operations. 

 

 
 

											
	 
	 	Fiscal Year Ended 	 
	(in millions, except ratio data)

 
	 	Dec. 31, 2016 	 	Jan. 2, 2016 	 	Jan. 3, 2015 	 
	 Consolidated Statement of Income Data:
	 	 	 	 	 	 	 	 	 	 
	 Net sales
	 	

$	6,086.5	 	

$	5,966.9	 	

$	6,330.3	 
	 Cost of products sold
	 	 	4,386.8	 	 	4,321.1	 	 	4,679.1	 
	 Gross profit
	 	 	1,699.7	 	 	1,645.8	 	 	1,651.2	 
	 Marketing general and administrative expense
	 	 	1,097.5	 	 	1,108.1	 	 	1,158.9	 
	 Interest expense
	 	 	59.9	 	 	60.5	 	 	63.3	 
	 Other expense, net
	 	 	65.2	 	 	68.3	 	 	68.2	 
	 Income from continuing operations before taxes
	 	 	477.1	 	 	408.9	 	 	360.8	 
	 Provision for income taxes
	 	 	156.4	 	 	134.5	 	 	113.5	 
	 Income from continuing operations
	 	 	320.7	 	 	274.4	 	 	247.3	 
	 Loss from discontinued operations, net of tax
	 	 	—	 	 	(0.1	)	 	(2.2	)
	 Net income
	 	 	320.7	 	 	274.3	 	 	245.1	 
	 Consolidated Balance Sheet Data (at period end):
	 	 	

 	 	 	

 	 	 	

 	 
	 Total assets
	 	

$	4,396.4	 	

$	4,133.7	 	

$	4,356.9	 
	 Short-term borrowings and current portion of long-term debt and capital leases
	 	 	579.1	 	 	95.3	 	 	204.3	 
	 Long-term debt and capital leases
	 	 	713.4	 	 	963.6	 	 	940.1	 
	 Total shareholders' equity
	 	 	925.5	 	 	965.7	 	 	1,047.7	 
	 Other Data:
	 	 	

 	 	 	

 	 	 	

 	 
	 Ratio of earnings to fixed charges(1)
	 	 	6.7	 	 	5.9	 	 	5.0	 

 

 	(1)
	The
ratios of earnings to fixed charges were computed by dividing earnings by fixed charges. For this purpose, "earnings" consist of income from continuing
operations before taxes plus fixed charges and amortization of capitalized interest, less capitalized interest. "Fixed charges" consist of interest expense, capitalized interest and the portion of
rent expense (estimated to be 35%) on operating leases deemed representative of interest.  

 

 

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  Risk Factors    
    

        An investment in the notes is subject to risk. Before you decide to invest in the notes, you should consider the risk
factors below as well as the risk factors discussed in Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which is incorporated herein by reference. 

Risk Related to the Notes  

The notes will be subject to prior claims of any of our secured creditors, if any, and your right to receive
payments on the notes will be structurally subordinated to our subsidiaries' existing and future liabilities.  

        The notes are our senior unsecured obligations. Holders of our secured indebtedness will have claims that are prior to your claims as holders of
the notes, to the extent of the value of the assets securing such indebtedness. The indenture governing the notes will permit us and our subsidiaries to incur additional secured indebtedness. In the
event of a bankruptcy, liquidation, dissolution, reorganization or similar proceeding, our pledged assets would be available to satisfy obligations of our secured indebtedness before any payment could
be made on the notes. To the extent that such assets could not satisfy in full our secured indebtedness, the holders of such indebtedness would have a claim for any shortfall that would rank equally
in right of payment with the notes. In any of the foregoing events, we cannot assure you that there will be sufficient assets to pay amounts due on the notes. As a result, holders of the notes may
receive less, ratably, than holders of our secured indebtedness. 

        In
addition, we currently conduct a substantial portion of our operations through our subsidiaries, and our subsidiaries have significant liabilities. We may, and in some cases have
plans to, conduct additional operations through our subsidiaries in the future and, accordingly, the obligations of our subsidiaries could increase. Our cash flow and our ability to service our debt,
including the notes, therefore partially depends upon the earnings of our subsidiaries, and we depend on the distribution of earnings, loans or other payments by those subsidiaries to us. 

        Our
subsidiaries are separate and distinct legal entities. Our subsidiaries will not guarantee the notes. Accordingly, our subsidiaries have no obligation to pay any amounts due on the
notes or, subject to existing or future contractual obligations between us and our subsidiaries, to provide us with funds to meet our payment obligations, whether by dividends, distributions, loans or
other payments. In addition, any payment of dividends, distributions, loans or advances by our subsidiaries to us could be subject to statutory or contractual restrictions and taxes. Payments to us by
our subsidiaries would also be contingent upon our subsidiaries' earnings and business considerations. 

        As
of December 31, 2016, our subsidiaries had approximately $556 million of indebtedness and capitalized lease obligations. As of December 31, 2016, as adjusted to
give effect to this offering and the repayment of approximately €200 million of commercial paper borrowings as
described under "Use of Proceeds," we had indebtedness and capitalized lease obligations of approximately $1.6 billion and no outstanding secured indebtedness. 

        Our
right to receive any assets of any of our subsidiaries upon liquidation or reorganization, and, as a result, the right of the holders of the notes to participate in those assets,
will be effectively subordinated to the claims of that subsidiary's creditors, including trade creditors and preferred stockholders, if any. The notes do not restrict the ability of our subsidiaries
to incur additional liabilities. In addition, even if we were a creditor of any of our subsidiaries, our rights as a creditor would be subordinate to any security interest of other creditors in the
assets of our subsidiaries and any indebtedness of our subsidiaries senior to indebtedness held by us. 

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The limited covenants applicable to the notes may not provide protection against some events or developments
that may affect our ability to repay the notes or the trading prices for the notes.  

        The indenture governing the notes, among other things, does not:

	•
	 require us to maintain any financial ratios or specific levels of net worth or liquidity and, accordingly, does not protect holders of the
notes in the event that we experience significant adverse changes in our financial condition or results of operations; 

	•
	 limit our ability to incur indebtedness, including secured indebtedness (subject to compliance with the lien covenant), that is equal in right
of payment to the notes; 

	•
	 limit our subsidiaries' ability to incur indebtedness that would be structurally senior to the notes;  

	•
	 restrict our ability to repurchase or prepay our securities; or 

	•
	 restrict our ability to make investments or to repurchase or pay dividends or make other payments in respect of our common stock or other
securities ranking junior to the notes. 

        For
these reasons, you should not consider the lien and sale-leaseback covenants in the indenture as a significant factor in evaluating whether to invest in the notes. In addition, we
are subject to periodic review by independent credit rating agencies. An increase in the level of our outstanding indebtedness, or other events that could have an adverse impact on our business,
properties, financial condition, results of operations or prospects, may cause the rating agencies to downgrade our debt credit rating generally, and the ratings on the notes, which could adversely
impact the trading prices for, or the liquidity of, the notes. Any such downgrade could also adversely affect our cost of borrowing, limit our access to the capital markets or result in more
restrictive covenants in future debt agreements. 

Our credit ratings may not reflect all risks of your investment in the notes.  

        The credit ratings assigned to the notes are limited in scope, and do not address all material risks relating to an investment in the notes, but
rather reflect only the view of each rating agency at the time the rating is issued. We cannot assure you that these credit ratings will remain in effect for any given period of time or that a rating
will not be lowered, suspended or withdrawn entirely by the applicable rating agency, if, in such rating agency's sole judgment, circumstances so warrant. Ratings are not a recommendation to buy, sell
or hold any security. Each agency's rating should be evaluated independently of any other agency's rating. Actual or anticipated changes or downgrades in our credit ratings, including any announcement
that our ratings are under further review for a downgrade, could affect the trading prices for, or liquidity of, the notes and increase our corporate borrowing costs. 

We may not be able to repurchase the notes upon a Change of Control Triggering Event.  

        Upon a Change of Control and a Ratings Event (in each case, as defined in the "Description of Notes") (a "Change of Control Triggering Event"),
we will be required to make an offer to each holder of notes to repurchase all or any part of such holder's notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest,
if any, to, but not including, the date of purchase. If we experience a Change of Control Triggering Event, we may not have sufficient financial resources available to satisfy our obligations to
repurchase the notes. In addition, our ability to repurchase the notes may be limited by law or the terms of other agreements relating to our indebtedness outstanding at the time. Any failure to
purchase the notes as required under the indenture governing the notes would result in a default under the indenture, which could have material adverse consequences for us and the holders of the
notes. 

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An active trading market may not develop for the notes. If an active trading market does develop, many
factors could adversely affect the market price of the notes.  

        The notes are a new issue of securities for which there is currently no established trading market. Although we intend to apply for listing of
the notes on the NYSE, no assurance can be given that the notes will become or will remain listed or that an active trading market for the notes will develop or, if developed, that it will continue.
If NYSE listing of the notes is obtained, we have no obligation to maintain such listing, and we may delist the notes at any time. Certain of the underwriters have informed us that they currently
intend to make a market in the notes after completion of the offering, but they have no obligation to do so and may discontinue making a market at any time without notice, in their sole discretion. If
an active trading market does not develop or is not sustained, the market price and liquidity of the notes may be adversely affected and you may be unable to resell your notes at a particular time, at
their fair market value or at all. 

        If
an active trading market does develop, many factors could adversely affect the market price of the notes. The market price of the notes will depend on many factors,
including:

	•
	 ratings on our debt securities assigned by credit rating agencies; 

	•
	 the market demand for securities similar to the notes and the interest of securities dealers in making a market for the notes;  

	•
	 the number of holders of the notes; 

	•
	 the prevailing interest rates being paid by other companies similar to us; 

	•
	 our financial condition, financial performance and future prospects; 

	•
	 the market price of our common stock; 

	•
	 the prospects for companies in our industry generally; and 

	•
	 the overall condition of the financial markets. 

        Historically,
the market for investment grade debt has been subject to disruptions that have caused volatility in prices of securities similar to the notes. It is possible that the
market for the notes will be
subject to disruptions. Any disruptions may have a negative effect on holders of the notes, regardless of our financial condition and performance and our prospects. 

An increase in market interest rates could result in a decrease in the value of the notes.  

        In general, as market interest rates rise, notes bearing interest at a fixed rate generally decline in value because the premium, if any, over
market interest rates declines. Consequently, if you purchase fixed rate notes and market interest rates increase, the market value of your fixed rate notes may decline. We cannot predict the future
level of market interest rates. 

We may redeem the notes at our option, which may adversely affect your return on the notes.  

        The notes are redeemable at our option, and we may, therefore, choose to redeem all or part of the notes at any time prior to the maturity date,
including at times when prevailing interest rates are relatively low. In the event that we redeem the notes prior to maturity, you may not be able to reinvest the proceeds you receive from the
redemption in a comparable security at an effective interest rate as high as the interest rate on your notes being redeemed. 

An investment in the notes by a purchaser whose home currency is not the euro entails significant risks.  

        All payments of interest on, premium, if any, and the principal of the notes and any redemption price for, or additional amounts with respect
to, the notes will be made in euros. An investment in the 

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notes
by a purchaser whose home currency is not the euro entails significant risks. These risks include the possibility of significant changes in the rates of exchange between the holder's home
currency and the euro and the possibility of the imposition or subsequent modification of foreign exchange controls with respect to the holder's home currency or the euro. These risks generally depend
on factors
affecting the notes and foreign exchange rates over which we have no control, such as economic, financial and political events and the supply of and demand for the relevant currencies. In the past,
rates of exchange between the euro and certain currencies have been highly volatile, and each holder should be aware that volatility may occur in the future. The exchange rates of a holder's home
currency for the euro and the fluctuations in those exchange rates that have occurred in the past are not necessarily indicative of fluctuations in the rate that may occur during the term of the
notes. Depreciation of the euro against the holder's home currency would result in a decrease in the effective yield of a note below its coupon rate and, in certain circumstances, could result in a
loss to the holder. 

The notes permit us to make payments in U.S. dollars if we are unable to obtain euros, and market perceptions
concerning the instability of the euro could materially adversely affect the value of the notes.  

        If the euro is unavailable to us due to the imposition of exchange controls or other circumstances beyond our control or if the euro is no
longer being used by the then member states of the European Monetary Union that have previously adopted the euro as their currency or for the settlement of transactions by public institutions of or
within the international banking community, then all payments in respect of the notes will be made in U.S. dollars until the euro is again available to us or so used. In such circumstances, the amount
payable on any date in euros will be converted into U.S. dollars on the basis of the then most recently available market exchange rate for the euro, as determined by us in our sole discretion. Any
payment in respect of the notes so made in U.S. dollars will not constitute an event of default under the notes or the indenture governing the notes. This exchange rate may be materially less
favorable than the rate in effect at the time the notes were issued or as would be determined by applicable law. Such developments, or market perceptions concerning these and related issues, could
materially adversely affect the value of the notes and you may lose a significant amount of your investment in the notes. 

In a lawsuit for payment on the notes, an investor may bear currency exchange risk.  

        The indenture is, and the notes will be, governed by the laws of the State of New York. Under New York law, a New York state court rendering a
judgment on the notes would be required to render the judgment in euros. However, the judgment would be converted into U.S. dollars at the exchange rate prevailing on the date of entry of the
judgment. Consequently, in a lawsuit for payment on the notes, investors would bear currency exchange risk until a New York state court judgment is entered, which could be a significant amount of
time. A federal court sitting in New York with diversity jurisdiction over a dispute arising in connection with the notes would apply New York law. 

        In
courts outside of New York, investors may not be able to obtain a judgment in a currency other than U.S. dollars. For example, a judgment for money in an action based on the notes in
many other U.S. federal or state courts ordinarily would be enforced in the United States only in U.S. dollars. The date
used to determine the rate of conversion of euros into U.S. dollars would depend upon various factors, including which court renders the judgment and when the judgment is rendered. 

Trading in the clearing systems is subject to minimum denomination requirements.  

        The terms of the notes provide that notes will be issued with a minimum denomination of €100,000 and multiples of
€1,000 in excess thereof. It is possible that the clearing systems may process trades which could result in amounts being held in denominations smaller than the minimum denominations.
If definitive notes are required to be issued in relation to such notes in accordance with the provisions of the relevant global notes, a holder who does not have the minimum denomination or 

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any
integral multiple of €1,000 in excess thereof in its account with the relevant clearing system at the relevant time may not receive all of its involvement in the form of definitive
notes unless and until such time as its holding satisfies the minimum denomination requirement. 

The European Commission has proposed a financial transaction tax in certain member states of the European
Union which, if adopted, could apply in certain circumstances to secondary market trades of the notes both within and outside of those participating member states.  

        On February 14, 2013, the European Commission published a proposal (the "Commission's Proposal") for a directive for a common financial
transaction tax (the "FTT") in Belgium, Germany, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia (the "participating Member States") and Estonia. However, Estonia has since
stated that it will not participate. 

        The
Commission's Proposal has very broad scope and could, if introduced in its published form, apply to certain dealings in the notes (including secondary market transactions) in certain
circumstances. 

        Under
the Commission's Proposal, the FTT could apply in certain circumstances to persons both within and outside of the participating Member States. Generally, it would apply to certain
dealings in the notes where at least one party is a financial institution, and at least one party is established in a participating Member State. A financial institution may be, or be deemed to be,
"established" in a participating Member State in a broad range of circumstances, including (a) by transacting with a person established in a participating Member State or (b) where the
financial instrument which is subject to the dealings is issued in a participating Member State. 

        The
FTT proposal remains subject to negotiation between participating Member States. It may therefore be altered prior to any implementation, the timing of which remains unclear.
Additional EU Member States may decide to participate. 

        Prospective
holders of the Notes are advised to seek their own professional advice in relation to the FTT. 

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  Use of Proceeds    
    

        We estimate that we will receive net proceeds from the offering of approximately €495.6 million, after deducting
underwriting discounts and estimated offering expenses. 

        We
intend to use approximately €200 million of the net proceeds of the offering to repay commercial paper borrowings with maturities under 180 days that we
used to finance a portion of our acquisition of the European business of Mactac in August 2016. We intend to use the remainder of the net proceeds of the offering for general corporate purposes. These
purposes may include the repayment of other indebtedness, including our 6.625% Guaranteed Notes due 2017, which mature on October 1, 2017, acquisitions, including the acquisitions of Hanita
Coatings and Yongle Tape Company, capital expenditures, working capital and any other corporate purpose. 

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  Currency Conversion    
    

        Unless otherwise specified, the euro/U.S. dollar exchange rate used in this prospectus supplement is €1.00 = $1.0614, as
announced by the U.S. Federal Reserve Board on February 17, 2017. 

        Investors
will be subject to foreign exchange risk as to payments of principal, premium, if any, interest and additional amounts, if any, which may have important economic and tax
consequences to them. See "Risk Factors." You should consult your own financial and legal advisors about the risks involved in an investment in the notes. 

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  Capitalization    
    

        The following table sets forth, as of December 31, 2016, our cash and cash equivalents and our consolidated capitalization on 

	•
	 an actual basis; and 

	•
	 an as adjusted basis to give effect to the offering of the notes offered hereby and the repayment of approximately
€200 million of commercial paper borrowings as described under "Use of Proceeds" in this prospectus supplement. 

        You
should read the following table together with the information set forth under "Summary—Summary Financial Data" in this prospectus supplement and the consolidated
financial statements and related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2016, which is incorporated by reference in this prospectus supplement. 

 

 
 

								
	 
	 	December 31, 2016 	 
	(in millions)

 
	 	Actual 	 	As adjusted 	 
	 Cash and cash equivalents
	 	

$	195.1	 	

$	508.9 	 
	

 ​	​	​

 	​

 	​	​

 	​

 	​
	

 ​	​	​	​	​	​	​	​
	

 ​	​	​

 	​

 	​	​

 	​

 	​ 
	 Short-term borrowings and current portion of long-term debt and capital leases:
	 	 	

 	 	 	

 	 
	 Short-term borrowings, including commercial paper borrowings
	 	

$	326.4	 	

$	114.1	 
	 6.625% Guaranteed Notes due 2017
	 	 	249.7	 	 	249.7	 
	 Capital lease obligations
	 	 	3.0	 	 	3.0 	 
	

 ​	​	​

 	​

 	​	​

 	​

 	​
	 Short-term borrowings and current portion of long-term debt and capital leases
	 	

$	579.1	 	

$	366.8 	 
	

 ​	​	​

 	​

 	​	​

 	​

 	​
	 Long-term debt and capital leases:
	 	 	 	 	 	 	 
	 Medium-term notes due 2020 through 2025
	 	

$	44.9	 	

$	44.9	 
	 5.375% Senior notes due 2020
	 	 	249.3	 	 	249.3	 
	 3.35% Senior notes due 2023
	 	 	248.4	 	 	248.4	 
	 6.000% Senior notes due 2033
	 	 	148.6	 	 	148.6	 
	 1.250% Senior notes offered hereby
	 	 	—	 	 	526.3	 
	 Capital lease obligations
	 	 	22.2	 	 	22.2 	 
	

 ​	​	​

 	​

 	​	​

 	​

 	​
	 Total long-term debt and capital leases
	 	

$	713.4	 	

$	1,239.7 	 
	

 ​	​	​

 	​

 	​	​

 	​

 	​
	 Shareholders' equity
	 	

$	925.5	 	

$	925.5 	 
	

 ​	​	​

 	​

 	​	​

 	​

 	​
	 Total capitalization
	 	

$	2,218.0	 	

$	2,532.0 	 
	

 ​	​	​

 	​

 	​	​

 	​

 	​
	

 ​	​	​	​	​	​	​	​
	

 ​	​	​

 	​

 	​	​

 	​

 	​ 

 

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  Description of the Notes    
    

        The following description is a summary of the material provisions of the notes and the indenture (as defined below)
under which the notes will be issued. This description does not describe every provision of the notes or the indenture. You should review the indenture for a complete description of what we describe
in summary form in this prospectus supplement. We urge you to read the indenture because it, and not this description, defines your rights as holders of the notes. The indenture has been filed as an
exhibit to the registration statement of which this prospectus supplement and the accompanying prospectus are deemed a part and is available as indicated in the accompanying prospectus under "Where
You Can Find More Information." Capitalized terms used but not defined in this description have the meanings specified in the indenture. In this section of this prospectus supplement, references to
"we", "our", "us" and the "Company" are to Avery Dennison Corporation and not its subsidiaries. 

General  

        The notes will constitute a series of debt securities to be issued under the Indenture, dated November 20, 2007, between Avery Dennison
Corporation and The Bank of New York Mellon Trust Company, N.A., as trustee (the "trustee"), as supplemented by a Supplemental Indenture to be entered into between us and the trustee (together, the
"indenture"). Under the agency agreement that we will enter into in connection with this offering, we have initially appointed The Bank of New York Mellon, London Branch to act as paying agent solely
with respect to the notes. We have also appointed The Bank of New York Mellon Trust Company, N.A. to act as transfer agent and registrar. 

        The
aggregate principal amount of the notes initially will be €500,000,000. The notes will mature and become due and payable, together with any accrued and unpaid
interest thereon, on March 3, 2025. The notes will bear interest at the rate of 1.250% per annum from March 3, 2017. 

        Interest
on the notes will be payable annually in arrears on March 3 of each year, beginning on March 3, 2018 to the persons in whose names the respective notes are
registered at the close of business on the February 16 preceding the respective interest payment dates. If any payment date is not a business day, then payment will be made on the next
succeeding business day, but without any additional interest or other amount. 

        Interest
on the notes will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the
last date on which interest was paid on the notes (or March 3, 2017 if no interest has been paid on the notes), to but excluding the next scheduled interest payment date. This payment
convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association. 

        The
notes will not have the benefit of any sinking fund. 

        The
notes will initially be represented by one or more registered notes in global form, but in certain limited circumstances may be represented by notes in definitive registered form.
See "—Book-Entry Procedures." The notes will be issued in euros and only in minimum denominations of €100,000 and integral multiples of €1,000 in excess
thereof. 

Listing  

        We intend to apply to list the notes on the New York Stock Exchange (the "NYSE"). The listing application will be subject to approval by the
NYSE. If such a listing is obtained, we have no obligation to maintain such listing, and we may delist the notes at any time. We currently expect trading in the notes on the NYSE to begin within
30 days after the original issue date. There is currently no public market for the notes. 

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Further Issues  

        We may, from time to time, without notice to or consent of the holders of the notes, create and issue additional notes ranking equally and
ratably with the notes in all respects (or in all respects except for the payment of interest accruing prior to the issue date of such additional notes or except, in some cases, for the first payment
of interest following the issue date of such additional notes). Any such additional notes may be consolidated and form a single series with the notes and will have the same terms as to status,
redemption or otherwise as the notes; provided, that if any such additional notes are not fungible with the notes offered hereby for U.S. federal income tax purposes, such additional notes will be
issued under a different CUSIP number. 

Ranking  

        The notes will be our senior unsecured obligations and will:

	•
	 rank equally and ratably with all of our other existing and future unsecured and unsubordinated indebtedness and other liabilities;  

	•
	 rank senior in right of payment to all of our existing and future subordinated indebtedness, if any;  

	•
	 be effectively junior to all of our future secured indebtedness, if any, to the extent of the value of the assets securing such indebtedness;
and 

	•
	 be structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries. 

        The
indenture does not limit the aggregate principal amount of debt securities that the Company may issue. The indenture does not contain any provisions that would limit the ability of
the Company or its Subsidiaries to incur additional unsecured indebtedness. As of December 31, 2016, our subsidiaries had approximately $556 million of indebtedness and capitalized lease obligations.
As of December 31, 2016, as adjusted to give effect to this offering and the repayment of approximately €200 million of commercial paper borrowings as described under "Use of
Proceeds," we had indebtedness and capitalized lease obligations of approximately $1.6 billion and no outstanding secured indebtedness. 

        The
Company conducts a substantial portion of its operations through its Subsidiaries. As a result, the Company is dependent on the cash flow of its Subsidiaries to meet its debt
obligations, including its obligations under the notes. In addition, the rights of the Company and its creditors, including the holders of the notes, to participate in the assets of any Subsidiary
upon the Subsidiary's liquidation or reorganization will be subject to the prior claims of its creditors except to the extent that the Company may itself be a creditor with recognized claims against
such Subsidiary. 

Issuance in Euros; Payment on the Notes  

        Initial holders will be required to pay for the notes in euros, and all payments on the notes will be payable in euros; provided that if on or
after the date of this prospectus supplement the euro is unavailable to us due to the imposition of exchange controls or other circumstances beyond our control or if the euro is no longer being used
by the then member states of the European Monetary Union that have previously adopted the euro as their currency or for the settlement of
transactions by public institutions of or within the international banking community, then all payments in respect of the notes will be made in U.S. dollars until the euro is again available to us or
so used. The amount payable on any date in euros will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second business day prior
to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the most recent U.S. dollar/euro exchange rate published in  The Wall Street
Journal on or prior to the 

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second
business day prior to the relevant payment date, or in the event The Wall Street Journal has not published such exchange rate, such rate as
determined in our sole discretion on the basis of the most recently available market exchange rate for the euro. Any payment in respect of the notes so made in U.S. dollars will not constitute an
event of default under the notes or the indenture. Neither the trustee nor the paying agent will have any responsibility for obtaining exchange rates, effecting conversions or otherwise handling
redenominations in connection with the foregoing. Investors will be subject to foreign exchange risks as to payments on the notes, which may have important economic consequences to them. See "Risk
Factors" in this prospectus supplement. 

Payments and Paying Agents  

        We will pay principal, premium, if any, interest, additional amounts, if any, and any other amounts due on the notes in euros and to the paying
agent at the corporate trust office of the trustee. We may also choose to pay interest by mailing checks or making wire transfers. We may also arrange for additional paying agent offices, and may
change these offices, including our use of the trustee's corporate trust office. 

        We
have initially appointed The Bank of New York Mellon, London Branch to act as paying agent in connection with the notes, and we have appointed The Bank of New York Mellon Trust
Company, N.A. to act as transfer agent and registrar. We may also choose to act as our own paying agent. We will notify you of changes in identities of the paying agents for the notes. 

        As
used in this prospectus supplement, "business day" means each day which is not a Saturday, Sunday or other day on which the trustee, paying agent, transfer agent and registrar or
banking institutions are not required by law or regulation to be open in the State of New York or London. 

Optional Redemption  

        The notes will be redeemable in whole or in part, at our option, at any time or from time to time at a redemption price equal to the greater of
(a) 100% of the principal amount of the notes to be redeemed and (b) the sum of the present values of the Remaining Scheduled Payments discounted to the redemption date, not including
any portion of any payments of interest accrued to the redemption date, on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate (as defined below), plus
25 basis points, plus accrued and unpaid interest thereon to, but not including, the date of redemption; provided, however, that if we redeem any notes on or after December 3, 2024 (the
date falling three months prior to the maturity date of the notes), the redemption price for the notes will be equal to 100% of the principal amount of the notes to be redeemed, plus accrued and
unpaid interest thereon to, but not including, the redemption date. 

        Notice
of any redemption will be transmitted not less than 30 days and not more than 60 days prior to the redemption date to each holder of notes to be redeemed. In
connection with any redemption of notes, any such redemption may, at our discretion, be subject to one or more conditions precedent. In addition, if such redemption or notice is subject to
satisfaction of one or more conditions precedent, such notice will state that, in our discretion, the redemption date may be delayed until the time that any or all such conditions shall be satisfied
(or waived by us in our sole discretion), or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions have not been satisfied (or waived by us in our
sole discretion) by the redemption date (whether the original redemption date or the redemption date so delayed). In addition, we may provide in such notice that payment of the redemption price and
performance of our obligations with respect to such redemption may be performed by another person. 

        Unless
we default in payment of the redemption price, from and after the redemption date, interest will cease to accrue on the notes or portions thereof called for redemption. If less
than all of the notes are to be redeemed, the notes to be redeemed will be selected by lot and may provide for the 

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selection
for redemption of a portion of the principal amount of notes held by a holder equal to an authorized denomination. If the Company redeems less than all of the notes and the notes are then
held in book-entry form, the redemption will be made in accordance with the depositary's customary procedures. 

        For
purposes of the optional redemption provisions of the notes, the following definitions will be applicable: 

        "Comparable
Government Bond" means, in relation to any Comparable Government Bond Rate calculation a German government bond
(Bundesanleihe) whose maturity is closest to the maturity of the notes, or if an independent investment bank selected by the Company in its discretion
determines that such similar bond is not in issue, such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German
government bonds selected by such independent investment bank, determine to be appropriate for determining the Comparable Government Bond Rate. 

        "Comparable
Government Bond Rate" means, with respect to any redemption date, the price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards),
at which the gross redemption yield on the notes, if they were to be purchased at such price on the third business day prior to the date fixed for redemption, would be equal to the gross redemption
yield on such business day of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such business
day as determined by an independent investment bank selected by the Company. 

        "Remaining
Scheduled Payments" means the remaining scheduled payments of the principal and interest on the notes to be redeemed that would be due after the related redemption date but
for such redemption; provided, however, that if such redemption date is not an interest payment date, the amount of the next scheduled interest payment
thereon will be reduced by the amount of interest accrued thereon to, but not including, such redemption date. 

Change of Control Offer  

        If a Change of Control Triggering Event occurs, unless we have exercised our option to redeem the notes as described above, we will be required
to make an offer (a "Change of Control Offer") to each holder of the notes to repurchase all or any part (equal to €100,000 or an integral multiple of €1,000 in excess
thereof) of that holder's notes on the terms set forth in the notes. In a Change of Control Offer, we will be required to offer payment in cash equal to 101% of the aggregate principal amount of notes
repurchased, plus accrued and unpaid interest, if any, on the notes repurchased to, but not including, the repurchase date (a "Change of Control Payment"). Within 30 days following any Change
of Control Triggering Event or, at our option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice will
be mailed to holders of the notes describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such notes on the repurchase date
specified in the applicable notice, which date will be no earlier than 30 days and no later than 60 days from the date on which such notice is mailed (a "Change of Control Payment
Date"). 

        The
notice will, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event
occurring prior to or on the applicable Change of Control Payment Date specified in the notice. 

        On
each Change of Control Payment Date, we will, to the extent lawful:

	•
	 accept for payment all notes or portions of notes properly tendered pursuant to the applicable Change of Control Offer; 

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	•
	 deposit with the paying agent an amount equal to the Change of Control Payment in respect of all notes or portions of notes properly tendered
pursuant to the applicable Change of Control Offer; and 

	•
	 deliver or cause to be delivered to the trustee the notes properly accepted together with an officer's certificate stating the aggregate
principal amount of notes or portions of notes being repurchased. 

        We
will not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for an offer made by us, and the third party repurchases all notes properly tendered and not withdrawn under its offer. In addition, we will not
repurchase any notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the indenture, other than a default in the payment of the Change of Control
Payment upon a Change of Control Triggering Event. 

        We
will comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the notes as a result of a Change of Control Triggering Event. To the extent that the provisions
of any such securities laws or regulations conflict with the Change of Control Offer provisions of the notes, we will comply with those securities laws and regulations and will not be deemed to have
breached our obligations under the Change of Control Offer provisions of the notes by virtue of any such conflict. 

        For
purposes of the Change of Control Offer provisions of the notes, the following definitions will be applicable: 

        "Change
of Control" means the occurrence of any of the following: 

	A.
	the
direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions,
of all or substantially all of our assets and our Subsidiaries' assets, taken as a whole, to any person, other than us or one of our Subsidiaries;

	B.
	the
consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any person becomes the beneficial owner
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of our outstanding Voting Stock or other Voting Stock into which the Company's Voting
Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; or

	C.
	the
adoption of a plan relating to our liquidation or dissolution. 

        Notwithstanding
the foregoing, a transaction will not be deemed to involve a Change of Control if (a) we become a direct or indirect wholly-owned Subsidiary of a holding company
and (b)(1) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of our Voting Stock immediately
prior to that transaction or (2) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly
or indirectly, of more than 50% of the Voting Stock of such holding company. The term "person," as used in this definition, has the meaning given thereto in Section 13(d)(3) of the Exchange
Act. 

        "Change
of Control Triggering Event" means the occurrence of both a Change of Control and a Rating Event. 

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        "Investment
Grade" means a rating equal to or higher than Baa3 (or the equivalent) by Moody's and BBB– (or the equivalent) by S&P, and the equivalent Investment Grade
credit rating from any replacement Rating Agency or Rating Agencies selected by us. 

        "Moody's"
means Moody's Investors Service, Inc., and its successors. 

        "Rating
Agencies" means (a) each of Moody's and S&P; and (b) if either Moody's or S&P ceases to rate the notes or fails to make a rating of the notes publicly available for
reasons outside of our control, a "nationally recognized statistical rating organization" within the meaning of Section 3(a)(62) of the Exchange Act selected by us (as certified by a resolution
of the Company's Board of Directors) as a replacement agency for Moody's or S&P, or each of them, as the case may be. 

        "Rating
Event" means the rating on the notes is lowered by each of the Rating Agencies and the notes are rated below Investment Grade by each of the Rating Agencies on any day within the
60-day period (which 60-day period will be extended so long as the rating of the notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) after the
earlier of (1) the occurrence of a Change of Control and (2) public notice of the occurrence of a Change of Control or our intention to effect a Change of Control;  provided, however, that a Rating Event otherwise arising by virtue of a particular reduction in rating
will not be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Rating Event for purposes of the definition of Change of Control Triggering Event) if
the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform us in writing that the reduction was the result, in
whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control has occurred
at the time of the Rating Event). 

        "S&P"
means Standard & Poor's Rating Services, a division of The McGraw Hill Companies, Inc., and its successors. 

        "Voting
Stock" means, with respect to any specified "person" (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that
is at the time entitled to vote generally in the election of the board of directors of such person. 

        The
definition of Change of Control includes a phrase relating to the direct or indirect sale, transfer, conveyance or other disposition of "all or substantially all" of our assets and
the assets of our Subsidiaries, taken as a whole. Although there is a limited body of case law interpreting the phrase "substantially all," there is no precise definition of the phrase under
applicable law. Accordingly, the ability of a holder of notes to require us to repurchase such holder's notes as a result of a sale, transfer, conveyance of other disposition of less than all of our
and our Subsidiaries' assets, taken as a whole, to any person or group or persons may be uncertain. 

Redemption for Tax Reasons  

        If, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or
any political subdivision of or taxing authority in the United States), or any change in, or amendment to, an official position regarding the application or interpretation of such laws, regulations or
rulings, which change or amendment is announced or becomes effective on or after the date of this prospectus supplement, we become or, based upon a written opinion of independent counsel selected by
us, there is a substantial probability that we will become, obligated to pay additional amounts as described under the heading "—Payment of Additional Amounts" with respect to the notes,
then we may at any time at our option redeem, in whole, but not in part, the notes on not less than 30 nor more than 60 days' prior notice, at a redemption price equal to 100% of their
principal amount, together with accrued and unpaid interest on the notes to, but not including, the date fixed for redemption. 

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Payment of Additional Amounts  

        All payments of principal and interest in respect of the notes will be made free and clear of, and without deduction or withholding for or on
account of, any present or future taxes, duties, assessments or other governmental charges of whatsoever nature required to be deducted or withheld by the United States or any political subdivision or
taxing authority of or in the United States, unless such withholding or deduction is required by law or the official interpretation or administration thereof. 

        In
the event any withholding or deduction on payments in respect of the notes for or on account of any present or future tax, assessment or other governmental charge is required to be
deducted or withheld by the United States or any political subdivision or taxing authority thereof or therein, we will pay such additional amounts on the notes as will result in receipt by each holder
of a note that is not a U.S. Person (as defined below) of such amounts (after all such withholding or deduction, including on any additional amounts) as would have been received by such holder had no
such withholding or deduction been required. We will not be required, however, to make any payment of additional amounts for or on account of: 

        (a)   any
tax, assessment or other governmental charge that would not have been imposed but for (1) the existence of any present or former connection (other than a
connection arising solely from the ownership of those notes or the receipt of payments in respect of those notes) between a holder of a note (or the beneficial owner for whose benefit such holder
holds such note), or between a fiduciary, settlor, beneficiary of, member or shareholder of, or possessor of a power over, that holder or beneficial owner (if that holder or beneficial owner is an
estate, trust, partnership or corporation) and the United States, including that holder or beneficial owner, or that fiduciary, settlor, beneficiary, member, shareholder or possessor, being or having
been a citizen or resident or treated as a resident of the United States or being or having been engaged in a trade or business or present in the United States or having had a permanent establishment
in the United States or (2) the presentation of a note for payment on a date more than 30 days after the later of the date on which that payment becomes due and payable and the date on
which payment is duly provided for; 

        (b)   any
estate, inheritance, gift, sales, transfer, capital gains, excise, personal property, wealth or similar tax, assessment or other governmental charge; 

        (c)   any
tax, assessment, or other governmental charge imposed by reason of the holder's or beneficial owner's past or present status as a passive foreign investment company,
a controlled foreign corporation, a foreign tax exempt organization or a personal holding company with respect to the United States or as a corporation that accumulates earnings to avoid U.S. federal
income tax; 

        (d)   any
tax, assessment or other governmental charge which is payable otherwise than by withholding or deducting from payment of principal of or premium, if any, or interest
on such notes; 

        (e)   any
tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of and premium, if any, or interest on any
note if that payment can be made without withholding by at least one other paying agent; 

        (f)    any
tax, assessment or other governmental charge which would not have been imposed but for the failure of a beneficial owner or any holder of notes to comply with a
request to satisfy certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United States of the beneficial
owner or any holder of the notes
(including, but not limited to, the requirement to provide Internal Revenue Service Forms W-8BEN, W-8BEN-E, W-8ECI, or any subsequent versions thereof or successor thereto, and including,
without limitation, any documentation requirement under an applicable 

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income
tax treaty), provided such beneficial owner or holder is legally able to so comply and compliance is a precondition to exemption from such tax, assessment or other governmental charge; 

        (g)   any
tax, assessment or other governmental charge imposed on interest received by or on behalf of (1) a 10-percent shareholder (as defined in
Section 871(h)(3)(B) of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), and the regulations that may be promulgated thereunder of us, (2) a controlled foreign
corporation that is related to us within the meaning of Section 864(d)(4) of the Code, or (3) a bank receiving interest described in Section 881(c)(3)(A) of the Code, to the
extent such tax, assessment or other governmental charge would not have been imposed but for the holder's or beneficial owner's status as described in clauses (1) through (3) of this
paragraph (g); 

        (h)   any
tax, assessment or other governmental charge required to be withheld or deducted under Sections 1471 through 1474 of the Code (or any amended or successor
version of such Sections that is substantively comparable) ("FATCA"), any regulations or other guidance thereunder, or any agreement (including any intergovernmental agreement) entered into in
connection therewith; or any law, regulation or other official guidance enacted in any jurisdiction implementing FATCA or an intergovernmental agreement in respect of FATCA; or 

        (i)    any
combination of items (a), (b), (c), (d), (e), (f), (g) and (h); 

nor
will we pay any additional amounts any holder that is not the sole beneficial owner of such notes, or a portion of such notes, or that is a fiduciary or partnership or a limited liability company,
to the extent that a beneficiary or settlor with respect to that fiduciary or a member of that partnership or limited liability company or a beneficial owner thereof would not have been entitled to
the payment of those additional amounts had that beneficiary, settlor, member or beneficial owner been the holder of those notes. 

        The
notes are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to the notes. Except as specifically provided
under this heading "—Payment of Additional Amounts," we will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a
political subdivision or taxing authority of or in any government or political subdivision. 

        As
used under this heading "—Payment of Additional Amounts" and under the heading "—Redemption for Tax Reasons," the term "United States" means the United States
of America, the states of the United States, and the District of Columbia, and the term "U.S. Person" means any individual who is a citizen or resident of the United States for U.S. federal income tax
purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia (other than a
partnership that is not treated as a United States person under any applicable U.S. Treasury regulations), or any estate or trust the income of which is subject to United States federal income
taxation regardless of its source. 

        Any
reference in the terms of the notes to any amounts in respect of the notes shall be deemed also to refer to any additional amounts which may be payable under this provision. 

Covenants  

        We will not be restricted by the indenture from incurring unsecured indebtedness or other obligations. We will also not be restricted by the
indenture from paying dividends or making distributions on our capital stock, or purchasing or redeeming our capital stock. The indenture also will not require the maintenance of any financial ratios
or specified levels of net worth or liquidity. 

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Restriction on Secured Debt  

        The Company will not, nor will it permit any of its Subsidiaries to, incur, issue, assume or guarantee any Debt secured by a Lien on any of its
or any Subsidiary's Principal Property, or on any share of capital stock or Debt of any Subsidiary, unless the Company secures or causes such Subsidiary to secure the notes equally and ratably with
(or, at the Company's option, prior to) such secured Debt, for so long as such secured Debt is so secured; provided,  however, that the foregoing
restrictions will not apply to Debt secured by the following: 

	1.
	any
Lien existing on the date of this prospectus supplement;

	2.
	Liens
on property of, or on any shares of capital stock of or Debt of, any Person existing at the time such Person is merged with or into or consolidated with the
Company or any Subsidiary or otherwise becomes a Subsidiary;

	3.
	Liens
in the Company's favor or in favor of any Subsidiary;

	4.
	Liens
in favor of governmental bodies to secure progress, advance or other payments pursuant to any contract or provision of any statute;

	5.
	Liens
on property existing at the time of acquisition thereof by the Company or any Subsidiary;

	6.
	any
Lien securing indebtedness incurred to finance the purchase price or cost of construction of property (or additions, substantial repairs, alterations or
substantial improvements thereto), provided that such Lien and the indebtedness secured thereby are incurred within twelve months of the later of acquisition or completion of construction (or
addition, repair, alteration or improvement) and full operation thereof;

	7.
	Liens
securing industrial revenue bonds, pollution control bonds or similar types of bonds;

	8.
	mechanics
and similar Liens arising in the ordinary course of business in respect of obligations not due or being contested in good faith;

	9.
	Liens
arising from deposits with, or the giving of any form of security to, any governmental agency required as a condition to the transaction of business or exercise
of any privilege, franchise or license;

	10.
	Liens
for taxes, assessments or governmental charges or levies which are not then delinquent or are being contested in good faith;

	11.
	Liens
put on any property in contemplation of its disposition, provided the Company has a binding agreement to sell at the time the Lien is imposed and the Company
disposes of the property within one year after the creation of the Liens and that any indebtedness secured by the Liens is without recourse to the Company or any of its Subsidiaries;

	12.
	Liens
(including judgment liens) arising from legal proceedings being contested in good faith (and, in the case of judgment liens, execution thereof is stayed); and

	13.
	any
amendment, extension, renewal or replacement of any Liens referred to in the foregoing clauses (1) through (12) inclusive or any Debt secured
thereby, provided that such extension, renewal or replacement will be limited to all or part of the same property, shares of capital stock or Debt that secured the Lien extended, renewed or replaced. 

        Notwithstanding
the foregoing, the Company and its Subsidiaries may issue, assume or guarantee Debt secured by a Lien which would otherwise be subject to the restrictions described
above, provided that the aggregate amount of all such secured Debt, together with all the Company and its Subsidiaries' Attributable Debt with respect to sale and leaseback transactions involving
Principal Properties (with 

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the
exception of such transactions which are excluded as described in "—Restriction on Sale and Leaseback Transactions"), may not exceed 15% of Consolidated Net Tangible Assets. 

Restriction on Sale and Leaseback Transactions  

        The Company will not, nor will it permit any of its Subsidiaries to, enter into any sale and leaseback transaction involving any Principal
Property, provided, however, the Company or any of its Subsidiaries may enter into a sale and leaseback
transaction if any of the following occurs: 

	1.
	the
lease is for a period, including renewal rights, of not in excess of three years;

	2.
	the
sale or transfer of the Principal Property is made within a specified period after its acquisition or construction;

	3.
	the
lease secures or relates to industrial revenue bonds, pollution control bonds or other similar types of bonds;

	4.
	the
transaction is between the Company and a Subsidiary or between Subsidiaries;

	5.
	the
Company or a Subsidiary, within 360 days after the Company or a Subsidiary makes a sale or transfer, applies an amount equal to the greater of the net
proceeds of the sale of the Principal Property leased pursuant to such arrangement or the fair market value of the Principal Property so leased at the time of entering into such arrangement (as
determined in any manner approved by the Company's Board of Directors) to:

	a.
	the
retirement of the notes or the Company's other Funded Debt ranking on a parity with or senior to the notes, or the retirement of the securities or other Funded
Debt of a Subsidiary; provided, however, that the amount to be applied to the retirement of the Company's Funded Debt or a Subsidiary's Funded Debt shall be reduced by (x) the principal amount
of any notes (or other notes or debentures constituting such Funded Debt) delivered within such 360-day period to the trustee for retirement and cancellation and (y) the principal amount of
such Funded Debt, other than items referred to in the preceding clause (x), voluntarily retired by the Company or a Subsidiary within 360 days after such sale; and provided further, that
notwithstanding the foregoing, no retirement referred to in this subclause (a) may be effected by payment at maturity or pursuant to any mandatory sinking fund payment or any mandatory
prepayment provision, or

	b.
	the
purchase of other property which will constitute a Principal Property having a fair market value, in the Company's determination, at least equal to the fair
market value of the Principal Property leased in such sale and leaseback transaction; or

	6.
	after
giving effect to the transaction, the aggregate amount of all Attributable Debt with respect to such transactions plus all Debt secured by Liens on Principal
Properties, or on shares of capital stock or Debt of Subsidiaries (with the exception of secured Debt which is excluded as described in "—Restrictions on Secured Debt"), would not exceed
15% of Consolidated Net Tangible Assets. 

Certain Definitions  

        The terms set forth below are defined in the indenture as follows: 

        "Attributable
Debt" means, as to any particular lease under which any Person is at the time liable and at any date as of which the amount thereof is to be determined, the total net
amount of rent required to be paid by such Person under such lease during the remaining primary term thereof, discounted from the respective due dates to such date at the actual percentage rate
inherent in such arrangement as the Company has determined in good faith. The net amount of rent required to be 

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paid
under any such lease for any such period shall be the aggregate amount of the rent payable by the lessee with respect to such period after excluding amounts required to be paid on account of
maintenance and repairs, insurance, taxes, assessments, water rates and similar charges. In the case of any lease which is terminable by the lessee upon the payment of a penalty, such net amount shall
also include the amount of such penalty, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated. 

        "Consolidated
Net Tangible Assets" means the aggregate amount of assets (less applicable reserves and other properly deductible items) less (i) all liabilities, other than
deferred income taxes and Funded Debt, and (ii) goodwill, trade names, trademarks, patents, organizational expenses and other like intangibles owned by the Company as well as the Company's
consolidated Subsidiaries and computed in accordance with generally accepted accounting principles. 

        "Debt"
means debt issued, assumed or guaranteed by the Company or a Subsidiary for money borrowed. 

        "Funded
Debt" means (i) all indebtedness for money borrowed having a maturity of more than 12 months from the date as of which the determination is made or having a
maturity of 12 months or less but by its terms being renewable or extendible beyond 12 months from such date at the option of the borrower and (ii) rental obligations payable more
than 12 months from such date under leases which are capitalized in accordance with generally accepted accounting principles (such rental obligations to be included as Funded Debt at the amount
so capitalized and to be included for the purposes of the definition of Consolidated Net Tangible Assets both as an asset and as Funded Debt at the amount so capitalized). 

        "GAAP"
means, with respect to any computation required or permitted under the indenture, generally accepted accounting principles in effect in the United States of America which are
applicable at the date of such computation and which are consistently applies for all applicable periods. 

        "Lien"
means any lien, mortgage or pledge. 

        "Person"
means an individual, a corporation, a limited liability company, a partnership, a joint-stock company, a trust, an unincorporated organization or a government or an agency or
political subdivision thereof. 

        "Principal
Property" means any real property the Company or any Subsidiaries own or hereafter acquire (including related land and improvements thereon and all machinery and equipment
included therein without deduction of any depreciation reserves) of which on the date as of which the determination is being made exceeds 2% of Consolidated Net Tangible Assets other than
(i) any property which in the Company's determination is not of material importance to the total business conducted by the Company and its Subsidiaries as an entirety or (ii) any portion
of a particular property which is similarly found not to be of material importance to the use or operation of such property. 

        "Subsidiary"
means, when used with respect to any Person, any corporation or other entity of which a majority of (a) the voting power of the voting equity securities or
(b) in the case of a partnership of any other entity other than a corporation, the outstanding equity interests of which are owned, directly or indirectly, by such Person. For the purposes of
this definition, "voting equity securities" means equity securities having voting power for the election of directors, whether at all times or only so long as no senior class of securities has such
voting power by reason of any contingency. 

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Merger, Consolidation or Sale of Assets  

        The Company shall not consolidate with or merge with or into any other Person or convey, transfer or lease all or substantially all of its
properties and assets to any Person, unless: 

	1.
	either
the Company shall be the continuing entity or the entity (if other than the Company) formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance, lease or transfer all or substantially all of the assets of the Company shall be an entity organized and existing under the laws of the United States of America,
any State thereof or the District of Columbia, and shall expressly assume the Company's obligations under the indenture and the performance of every covenant and condition of the indenture on the part
of the Company to be performed or observed;

	2.
	immediately
after giving effect to such transaction, no default has occurred and is continuing under the indenture; and 

the
Company has delivered to the trustee an officer's certificate and an opinion of counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction, such supplemental indenture complies with this covenant and that all conditions precedent provided for in the indenture relating to such
transaction have been complied with. 

        Upon
any consolidation of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or lease of all or substantially all of the properties and assets
of the Company in accordance with this covenant, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company under the indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under the indenture and the notes. 

Events of Default  

        An "Event of Default" means one of the following events: 

	1.
	default
in any payment of interest on the notes when due and payable and the default continues for a period of 30 days;

	2.
	default
in the payment of principal of, and premium, if any, on the notes when due and payable at maturity, upon required repurchase, upon acceleration, by call for
redemption or otherwise;

	3.
	the
failure of the Company for 90 days (or 120 days in the case of a breach of the reporting covenant contained in the indenture) to comply with any of
its other agreements contained in the indenture or the notes after written notice of such default from the trustee or holders of at least 25% in principal amount of the outstanding notes has been
received by the Company;

	4.
	the
Company fails to pay at maturity or the acceleration of any of its or its Subsidiaries' indebtedness, other than non-recourse indebtedness, at any one time in an
amount in excess of $100 million, if the indebtedness is not discharged or the acceleration is not annulled within 30 days after written notice to the Company by the trustee or the
holders of at least 25% in principal amount of the outstanding notes; or

	5.
	the
Company files for bankruptcy or other specified events in bankruptcy, insolvency, receivership or reorganization occur. 

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        If
any one or more of the above-described Events of Default shall happen (other than an Event of Default specified in paragraph (5) above), then, and in each and every such case,
during the continuance of any such Event of Default, the trustee or the holders of 25% or more in principal amount of the notes then outstanding may (and upon the written request of the holders of a
majority in principal amount of the notes than outstanding, the trustee shall) declare the principal of and all accrued but unpaid interest on all the notes then outstanding, if not then due and
payable, to be due and payable, and upon any such declaration the same shall become and be immediately due and payable, anything in the indenture or in the notes contained to the contrary
notwithstanding. If an Event of Default specified in paragraph (5) above occurs, then the principal of and all accrued but unpaid interest on all the notes then outstanding will  ipso facto become
and be immediately due and payable without any declaration or other act on the part of the trustee or any holder. Upon payment of such
amounts, all obligations of the Company in respect of the payment of principal of and interest on the notes shall terminate. 

        If
at any time after the principal of all the notes shall have been so declared to be due and payable, and before a judgment or decree for payment of the money due has been obtained by
the trustee provided in the indenture: 

	1.
	the
Company has paid or deposited with the trustee a sum sufficient to pay:

	a.
	all
amounts owing the trustee and any predecessor trustee under the indenture;

	b.
	all
arrears of interest, if any, upon the notes (with interest, to the extent that interest thereon shall be legally enforceable, on any overdue installment of
interest at the rate borne by the notes);

	c.
	the
principal of and premium, if any, on the notes that have become due otherwise than by such declaration of acceleration and interest thereon; and

	d.
	all
other sums payable under the indenture (except the principal of the notes which would not be due and payable were it not for such declaration); and

	2.
	every
other default and Event of Default under the indenture shall have been resolved so that the conditions that caused such default or Event of Default are no
longer outstanding or have otherwise been remedied to the reasonable satisfaction of the trustee or of the holders of a majority in principal amount of the notes then outstanding, or provision deemed
by the trustee or by such holders to be adequate therefor shall have been made, then and in every such case the holders of a majority in principal amount of the notes then outstanding may, by written
notice to the Company and the trustee, on behalf of the holders of all the notes, waive the Event of Default by reason of which the principal of the notes shall have been so declared to be due and
payable and may rescind and annul such declaration and its consequences; provided, however, that no such waiver, rescission or annulment shall extend to or affect any subsequent default or Event of
Default or impair any right consequent thereon. 

Modification of Indenture  

Changes Not Requiring Approval of Holders of the Notes  

        The Company (when authorized by a Board Resolution) and the trustee, at any time and from time to time, may enter into one or more supplemental
indentures, in form satisfactory to the trustee, for any one or more of or all the following purposes: 

	1.
	to
add to the covenants and agreements of the Company to be observed thereafter and during the period, if any, in such supplemental indenture or indentures expressed,
and to add Events of Default, in each case for the protection or benefit of the holders of the notes, or to surrender any right or power herein conferred upon the Company; 

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	2.
	to
add to or change any of the provisions of the indenture to change or eliminate any restrictions on the payment of principal of or premium, if any, on the notes;
provided that any such action shall not adversely affect the interests of the holders of the notes in any material respect, or to permit or facilitate the issue of the notes in uncertificated form;

	3.
	to
change or eliminate any of the provisions of the indenture; provided that any such change or elimination shall become effective only when there are no outstanding
notes created prior to the execution of such supplemental indenture that are entitled to the benefit of such provision and as to which such supplemental indenture would apply;

	4.
	to
evidence the succession of another corporation to the Company, or successive successions, and the assumption by such successor of the covenants and obligations of
the Company contained in the notes and in the indenture or any supplemental indenture;

	5.
	to
evidence and provide for the acceptance of appointment hereunder by a successor trustee with respect to the notes and to add to or change any of the provisions of
the indenture as shall be necessary for or facilitate the administration of the trusts hereunder by more than one trustee;

	6.
	to
secure the notes;

	7.
	to
cure any ambiguity or to correct or supplement any provision contained herein or in any indenture supplemental hereto which may be defective or inconsistent with
any other provision contained herein or in any supplemental indenture;

	8.
	to
comply with the requirements of the Trust Indenture Act or the rules and regulations of the SEC thereunder in order to effect or maintain the qualification of the
indenture under the Trust Indenture Act, as contemplated by the indenture or otherwise;

	9.
	to
add guarantors or co-obligors with respect to the notes;

	10.
	to
make any change in the notes that does not adversely affect in any material respect the interests of the holders of the notes; provided that no such change shall
be deemed to adversely affect the holders of the notes if such change is made to conform the terms of the notes to the terms described in the prospectus supplement;

	11.
	to
prohibit the authentication and delivery of additional series of notes; or

	12.
	to
establish the form and terms of the notes as permitted in the indenture or to authorize the issuance of additional debt securities previously authorized or to add
to the conditions, limitations or restrictions on the authorized amount, terms or purposes of issue, authentication or delivery of the notes, as set forth in the indenture, or other conditions,
limitations or restrictions thereafter to be observed. 

Changes Requiring Approval of Holders of the Notes  

        With the consent of the holders of a majority in aggregate principal amount of the notes outstanding, the Company (when authorized by a Board
Resolution) and the trustee may, from time to time and at any time, enter into an indenture or supplemental indenture for the purpose of adding any provisions to or changing in any manner or
eliminating any provisions of the indenture or of modifying in any manner the rights of the holders of the notes; provided,  however, that no such
supplemental indenture shall, without the consent of the holder of each notes affected thereby,
 

	1.
	extend
the stated maturity of the principal of, or any installment of interest on, the notes, or reduce the principal amount thereof or the interest thereon or any
premium payable upon redemption thereof, or extend the stated maturity of, or change the currency in which the principal of, premium, if any, or interest on the notes are denominated or payable, or
impair 

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the
right to institute suit for the enforcement of any payment on or after the stated maturity thereof (or, in the case of redemption, on or after the redemption date); or  

	2.
	reduce
the percentage in principal amount of the outstanding notes, the consent of whose holders is required for any supplemental indenture, or the consent of whose
holders is required for any waiver of compliance with certain provisions of the indenture or certain defaults under the indenture and their consequences provided for in the indenture; or

	3.
	modify
any of the provisions of the indenture relating to supplemental indentures and waivers of certain covenants and past defaults, except to increase any of the
respective percentages referred to therein or to provide that certain other provisions of the indenture cannot be modified or waived without the consent of the holder of each notes affected thereby;
or

	4.
	modify,
without the written consent of the trustee, the rights, duties or immunities of the trustee. 

        It
will not be necessary for any act of holders under the preceding paragraph to approve the particular form of any proposed supplemental indenture, but it will be sufficient if such act
will approve the substance thereof. 

Effect of Supplemental Indenture  

        A supplemental indenture which changes or eliminates any covenant or other provision of the indenture with respect to the notes or which
modifies the rights of the holders of the notes with respect to such covenant or other provision, will be deemed not to affect the rights under the indenture of holders of other series of debt
securities. Similarly, a supplemental indenture which changes or eliminates any covenant or other provision of the indenture with respect to debt securities of any other series or which modifies the
rights of the holders of debt securities of any other series with respect to such covenant or other provision, will be deemed not to affect the rights under the indenture of holders of the notes. 

Defeasance and Discharge  

        The indenture shall, at the Company's option, cease to be of further effect and the trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of the indenture, when,  

	1.
	either:

	a.
	all
notes theretofore authenticated and delivered (other than (i) notes that have been destroyed, lost or stolen and that have been replaced or paid and
(ii) notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust)
have been delivered to the trustee for cancellation; or

	b.
	all
notes not theretofore delivered to the trustee for cancellation,

	(1)
	have
become due and payable, or

	(2)
	will
become due and payable at maturity within one year, or

	(3)
	are
to be called for redemption within one year under arrangements satisfactory to the trustee for the giving of notice by the trustee in the name, and at the
expense, of the Company, and the Company has irrevocably deposited or caused to be deposited with the trustee as trust funds in trust for the purpose an amount sufficient to pay and discharge the
entire indebtedness on the notes for principal, premium, if any, and interest to the date of such deposit or to the stated maturity or redemption date, 

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as
the case may be; provided, however, in the event a petition for relief under federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy,
insolvency or other similar law, is filed with respect to the Company within 91 days after the deposit and the trustee is required to return the moneys then on deposit with the trustee to the
Company, the obligations of the Company under the indenture shall not be deemed terminated or discharged;  

	2.
	the
Company has paid or caused to be paid all other sums payable hereunder by the Company; and

	3.
	the
Company has delivered to the trustee an officer's certificate and an opinion of counsel each stating that all conditions precedent provided for in the indenture
relating to the satisfaction and discharge of the indenture have been complied with. 

        At
the Company's option, either (a) the Company shall be deemed to have been Discharged from its obligations with respect to the notes on the first day after the applicable
conditions set forth below have been satisfied or (b) the Company shall cease to be under any obligation to comply with any term, provision or condition set forth in "—Covenants"
above at any time after the applicable conditions set forth below have been satisfied: 

	1.
	the
Company shall have deposited or caused to be deposited irrevocably with the trustee as trust funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the holders of the notes (A) money in an amount, or (B) U.S. Government Obligations that through the payment of interest and principal in respect thereof in
accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount or (C) a combination of (A) and (B), sufficient to pay and
discharge each installment of principal of, premium, if any, and interest on, the notes on the dates such installments of principal, premium, if any, and interest are due;

	2.
	no
Event of Default or event (including such deposit) that, with notice or lapse of time, or both, would become an Event of Default with respect to the notes shall
have occurred and be continuing on the date of such deposit; and

	3.
	the
Company shall have delivered to the trustee an opinion of counsel to the effect that holders and beneficial owners of the notes will not recognize income, gain or
loss for U.S. federal income tax purposes as a result of the Company's exercise of its option under this paragraph and will be subject to U.S. federal income tax on the same amounts and in the same
manner and at the same times as would have been the case if such action had not been exercised and, in the case of the notes being Discharged, such opinion shall be based on either a change in
applicable U.S. federal income tax law since the date of the indenture or a ruling received by the Company from, or that is published by, the U.S. Internal Revenue Service. 

        "Discharged"
means that the Company will be deemed to have paid and discharged the entire indebtedness represented by, and obligations under, the notes and to have satisfied all the
obligations under the indenture relating to the notes (and the trustee, at the expense of the Company, will have executed proper instruments acknowledging the same), except (a) the rights of
holders of the notes to receive, from the trust fund described in paragraph (1) above, payment of the principal of, premium, if any, and interest on such notes when such payments are due,
(b) the Company's obligations with respect to the notes under the indenture and (c) the rights, powers, trusts, duties and immunities of the trustee under the indenture. 

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        "U.S. Government Obligations" means securities that are (a) direct obligations of the United States for the payment of which its full faith and credit is
pledged, or (b) obligations of a person controlled or supervised by and acting as an agency or instrumentality of the United States the payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States, which, in the case of clause (a) or (b) above, are not callable or redeemable at the option of the issuer thereof, and will also include
a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of a depository receipt; provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific
payment of interest on or principal of the U.S. Government Obligation evidenced by such depository receipt. 

Liability for Notes  

        No recourse shall be had for the payment of the principal of, premium, if any, or interest on, the notes or for any claim based thereon or
otherwise in respect thereof or of the indebtedness represented thereby, or upon any obligation, covenant or agreement of the indenture, against any incorporator, stockholder, officer or director, as
such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitutional provision,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the indenture and the notes are solely corporate obligations, and
that no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor corporation, because of the incurring of the indebtedness hereby authorized or under or by reason of any of the obligations,
covenants, promises or agreements contained in the indenture or in the notes, or to be implied herefrom or therefrom, and that all liability, if any, of that character against every such incorporator,
stockholder, officer and director is, by the acceptance of the notes and as a condition of, and as part of the consideration for, the execution of the indenture and the issue of the notes expressly
waived and released. 

Book-Entry Procedures  

Global Clearance and Settlement  

        The notes will be issued in the form of one or more global notes (each a "global note") in fully registered form, without coupons, and will be
deposited on the closing date with, or on behalf of, a common depositary, and registered in the name of the nominee of the common depositary, for, and in respect of interests held through, Euroclear
Bank S.A./N.V. ("Euroclear") and Clearstream Banking, société anonyme ("Clearstream"). Except as described herein, certificates will not be issued in exchange for
beneficial interests in the global notes. 

        Except
as set forth below, the global notes may be transferred, in whole and not in part, only to a common depositary for Euroclear or Clearstream or their nominee. 

        Beneficial
interests in the global notes will be represented, and transfers of such beneficial interests will be effected, through accounts of financial institutions acting on behalf of
beneficial owners as direct or indirect participants in Euroclear or Clearstream. Those beneficial interests will be in denominations of €100,000 and integral multiples of
€1,000 in excess thereof. Investors may hold notes directly through Euroclear or Clearstream, if they are participants in such systems, or indirectly through organizations that are
participants in such systems. It is possible that the clearing systems may process trades that could result in amounts being held in denominations smaller than the minimum 

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denominations.
If definitive notes are required to be issued in relation to such notes in accordance with the provisions of the relevant global notes, a holder who does not have the minimum
denomination or a multiple of €1,000 in excess thereof in its account with the relevant clearing system at the relevant time may not receive all of its entitlement in the form of
definitive notes unless and until such time as its holding satisfies the minimum denomination requirement. 

        Owners
of beneficial interests in the global notes will not be entitled to have notes registered in their names, and will not receive or be entitled to receive physical delivery of notes
in definitive form. Except as provided below, beneficial owners will not be considered the owners or holders of the notes under the indenture, including for purposes of receiving any reports delivered
by us or the trustee pursuant to the indenture. Accordingly, each beneficial owner must rely on the procedures of the clearing systems and, if such person is not a participant of the clearing systems,
on the procedures of the participant through which such person owns its interest, to exercise any rights of a holder under the indenture. Under existing industry practices, if we request any action of
holders or a beneficial owner desires to give or take any action which a holder is entitled to give or take under the indenture, the clearing systems would authorize their participants holding the
relevant beneficial interests to give or take action and the participants would authorize beneficial owners owning through the participants to give or take such action or would otherwise act upon the
instructions of beneficial owners. Conveyance of notices and other communications by the clearing systems to their participants, by the participants to indirect participants and by the participants
and indirect participants to beneficial owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. The laws of some
jurisdictions require that certain purchasers of securities take physical delivery of such securities in certificated form. These limits and laws may impair the ability to transfer beneficial
interests in global notes. 

        Persons
who are not Euroclear or Clearstream participants may beneficially own notes held by the common depositary for Euroclear and Clearstream only through direct or indirect
participants in Euroclear and Clearstream. So long as the common depositary for Euroclear and Clearstream is the registered owner of the global note, the common depositary for all purposes will be
considered the sole holder of the notes represented by the global note under the indenture and the global notes. 

Certificated Notes  

        If the applicable depositary is at any time unwilling or unable to continue as depositary for any of the global notes and a successor depositary
is not appointed by us within 90 days, or if we have been notified that both Clearstream and Euroclear have been closed for business for a continuous period of 14 days (other than by
reason of holiday, statutory or otherwise) or have announced an intention permanently to cease business or have in fact done so and no successor clearing system is available, we will issue the notes
in definitive registered form in exchange for the applicable global notes. We will also issue the notes in definitive registered form in exchange for the global notes if an event of default has
occurred with regard to the notes represented by the global notes and has not been cured or waived. In addition, we may at any time and in our sole discretion determine not to have the notes
represented by the global notes and, in that event, will issue the notes in definitive registered form in exchange for the global notes. In any such instance, an owner of a beneficial interest in the
global notes will be entitled to physical delivery in definitive registered form of the notes represented by the global notes equal in principal amount to such beneficial interest and to have such
notes registered in its name. The notes so issued in definitive form will be issued as registered in minimum denominations of €100,000 and integral multiples of €1,000
thereafter, unless otherwise specified by us. The notes in definitive form can be transferred by presentation for registration to the registrar at our office or agency for such purpose and must be
duly endorsed by the holder or his attorney duly authorized in writing, or accompanied by a written instrument or instruments of transfer in form satisfactory to us or the registrar duly executed by
the holder or his attorney duly authorized in writing. We may require 

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payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer of definitive notes. 

Clearing Systems  

        We have been advised by Euroclear and Clearstream, respectively, as follows: 

        Euroclear.    Euroclear advises that it was created in 1968 to hold securities for its participants and to clear and settle transactions
between
Euroclear participants through simultaneous electronic book-entry delivery against payment, thereby eliminating the need for physical movement of certificates and any risk from lack of simultaneous
transfers of securities and cash. Euroclear provides various other services, including securities lending and borrowing, and interfaces with domestic markets in several countries. All operations are
conducted by Euroclear Bank, S.A./N.V. and all Euroclear securities clearance accounts and Euroclear cash accounts are accounts with Euroclear Bank, not the cooperative. The cooperative
establishes policy for Euroclear on behalf of Euroclear participants. Euroclear participants include banks (including central banks), securities brokers and dealers and other professional financial
intermediaries and may include the underwriters ("Euroclear participants"). Indirect access to Euroclear is also available to other firms that clear through or maintain a custodial relationship with a
Euroclear participant, either directly or indirectly. 

        Securities
clearance accounts and cash accounts with the Euroclear Bank are governed by the Terms and Conditions Governing Use of Euroclear and the related Operating Procedures of the
Euroclear System, and applicable Belgian law (collectively, the "Euroclear terms and conditions"). The Euroclear terms and conditions govern transfers of securities and cash within Euroclear,
withdrawals of securities and cash from Euroclear, and receipts of payment with respect to securities in Euroclear. All securities in Euroclear are held on a fungible basis without attribution of
specific certificates to specific securities clearance accounts. The Euroclear Bank acts under the Euroclear terms and conditions only on behalf of Euroclear participants, and has no record of or
relationship with persons holding through Euroclear participants. 

        Distributions
with respect to notes held beneficially through Euroclear will be credited to the cash accounts of Euroclear participants in accordance with the Euroclear terms and
conditions, to the extent received by the Euroclear Bank and by Euroclear. 

        Clearstream.    Clearstream is incorporated under the laws of Luxembourg as a professional depositary. Clearstream holds securities for
Clearstream
participants, and facilitates the clearance and settlement of securities transactions between Clearstream participants through electronic book-entry changes in accounts of Clearstream participants,
thereby eliminating the need for physical movement of certificates. Clearstream provides to its participants, among other things, services for safekeeping, administration, clearance and settlement of
internationally traded securities and securities lending and borrowing. Clearstream also deals with domestic securities markets in several countries. As a professional depositary, Clearstream is
subject to regulation by the Luxembourg Monetary Institute. Clearstream participants are financial institutions around the world, including securities brokers and dealers, banks, trust companies,
clearing corporations and certain other organizations and may include the underwriters. Indirect access to Clearstream is also available to others, such as banks, brokers, dealers and trust companies
that clear through, or maintain a custodial relationship with, a Clearstream participant either directly or indirectly. 

        Distributions
with respect to the notes held beneficially through Clearstream will be credited to cash accounts of Clearstream participants in accordance with its rules and procedures,
to the extent received by Clearstream. 

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Euroclear and Clearstream Arrangements  

        So long as Euroclear or Clearstream or their nominee or their common depositary is the registered holder of the global notes, Euroclear,
Clearstream or their nominee or their common depositary is the registered holder of the global notes, Euroclear, Clearstream or such nominee, as the case may be, will be considered the sole owner or
holder of the notes represented by such notes for all purposes under the indenture and the notes. Payments of principal, interest and premium, if any, in respect of the global notes will be made to
Euroclear, Clearstream, such nominee or such common depositary, as the case may be, as registered holder thereof. None of us, the trustee, the paying agent, any underwriter and any affiliate of any of
the above or any person by whom any of the above is controlled (as such term is defined in the U.S. Securities Act of 1933, as amended (the "Securities Act")) will have any responsibility or liability
for any records relating to or payments made on account of beneficial ownership interests in the global notes or for maintaining, supervising or reviewing any records relating to such beneficial
ownership interests. 

        Distributions
of principal, premium, if any, and interest with respect to the global note will be credited in euros to the extent received by Euroclear or Clearstream from the trustee or
the paying agent, as applicable, to the cash accounts of Euroclear or Clearstream customers in accordance with the relevant system's rules and procedures. 

        Because
Euroclear and Clearstream can only act on behalf of participants, who in turn act on behalf of indirect participants, the ability of a person having an interest in the global
notes to pledge such interest to persons or entities which do not participate in the relevant clearing system, or otherwise take actions in respect of such interest, may be affected by the lack of a
physical certificate in respect of such interest. 

        The
holdings of book-entry interests in the global notes through Euroclear and Clearstream will be reflected in the book-entry accounts of each such institution. As necessary, the
registrar will adjust the amounts of the global notes on the register for the accounts of the common depositary to reflect the amounts of notes held through Euroclear and Clearstream, respectively. 

Initial Settlement  

        Investors holding their notes through Euroclear or Clearstream accounts will follow the settlement procedures applicable to conventional
eurobonds in registered form. Subject to applicable procedures of Clearstream and Euroclear, notes will be credited to the securities custody accounts of Euroclear and Clearstream holders on the
settlement date against payment for value on the settlement date. 

Secondary Market Trading  

        Because the purchaser determines the place of delivery, it is important to establish at the time of trading of any notes where both the
purchaser's and seller's accounts are located to ensure that settlement can be made on the desired value date. 

        Secondary
market sales of book-entry interests in the notes held through Euroclear or Clearstream to purchasers of book-entry interests in the global notes through Euroclear or
Clearstream will be conducted in accordance with the normal rules and operating procedures of Euroclear and Clearstream and will be settled using the procedures applicable to conventional eurobonds in
same-day funds. 

        You
should be aware that investors will only be able to make and receive deliveries, payments and other communications involving the notes through Euroclear and Clearstream on days when
those systems are open for business. Those systems may not be open for business on days when banks, brokers and other institutions are open for business in the United States. 

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        In
addition, because of time-zone differences there may be problems with completing transactions involving Euroclear and Clearstream on the same business day as in the United States.
U.S. investors who wish to transfer their interests in the notes, or to make or receive a payment or delivery of the
notes, on a particular day, may find that the transactions will not be performed until the next business day in Luxembourg or Brussels, depending on whether Euroclear or Clearstream is used. 

        Euroclear
and Clearstream will credit payments to the cash accounts of Euroclear participants or Clearstream customers in accordance with the relevant system's rules and procedures, to
the extent received by its depositary. Clearstream or the Euroclear Operator, as the case may be, will take any other action permitted to be taken by a holder under the indenture on behalf of a
Euroclear participant or Clearstream customer only in accordance with its relevant rules and procedures. 

        Euroclear
and Clearstream have agreed to the foregoing procedures in order to facilitate transfers of the notes among participants of Euroclear and Clearstream. However, they are under
no obligation to perform or continue to perform those procedures, and they may discontinue those procedures at any time. 

        The
information in this section concerning Euroclear and Clearstream and their book-entry systems has been obtained from sources that we believe to be reliable, but we take no
responsibility for the accuracy of that information. In addition, the description of the clearing systems in this section reflects our understanding of the rules and procedures of Clearstream and
Euroclear as they are currently in effect. Those clearing systems could change their rules and procedures at any time. 

        None
of the Company, the underwriters or the trustee will have any responsibility or liability for any aspect of the records relating to or payments made on account of the beneficial
interests in a global note, or for maintaining, supervising or reviewing any records relating to such beneficial interests. 

Governing Law  

        The indenture and the notes will be governed by and construed in accordance with the laws of the State of New York. 

Concerning the Trustee  

        The trustee has provided various services to us in the past and may do so in the future in the ordinary course of its regular business. 

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  Certain ERISA Considerations    
    

        The following is a summary of certain considerations associated with the purchase and holding of the notes by an employee benefit plan subject
to Title I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a plan described in Section 4975 of the Code which is subject to Section 4975 of the Code
(including an individual retirement account ("IRA") and a Keogh plan) or provisions under other federal, state, local, non-U.S. or other laws or regulations that are similar to one or more provisions
of Title I of ERISA or Section 4975 of the Code (collectively, "Similar Laws"), and any entity whose underlying assets are considered to include "plan assets" (within the meaning of ERISA and
any Similar Laws) of any such plan, account or arrangement (each, a "Plan"). 

General fiduciary matters  

        ERISA and the Code impose certain duties on persons who are fiduciaries of a Plan subject to Title I of ERISA or Section 4975 of the Code
(each, an "ERISA Plan") and prohibit certain transactions involving the assets of an ERISA Plan and its fiduciaries or other interested parties. Under ERISA and the Code, any person who exercises any
discretionary authority or control over the administration of an ERISA Plan or the management or disposition of the assets of an ERISA Plan, or who renders investment advice for a fee or other
compensation to an ERISA Plan (an "investment advice fiduciary"), is generally considered to be a fiduciary of the ERISA Plan. 

        When
considering an investment in the notes with the assets of any Plan, a fiduciary should determine whether the investment is in accordance with the documents and instruments governing
the Plan and the applicable provisions of ERISA, the Code or any Similar Laws relating to a fiduciary's duties to the Plan including, without limitation, the prudence, diversification, delegation of
control and prohibited transaction provisions of ERISA, the Code and any applicable Similar Laws. 

Prohibited transaction issues  

        Section 406 of ERISA and Section 4975 of the Code prohibit ERISA Plans from engaging in specified transactions involving plan
assets with persons or entities who are "parties in interest," within the meaning of ERISA, or "disqualified persons," within the meaning of Section 4975 of the Code, unless an exemption is
available. A party in interest or disqualified person, including a fiduciary, of an ERISA Plan who engages in a non-exempt prohibited transaction may be subject to excise taxes and other penalties and
liabilities under ERISA and the Code. 

        The
acquisition and/or holding of notes by an ERISA Plan with respect to which the issuer, an underwriter or certain of the issuer's or underwriter's affiliates or the initial purchaser
is considered a party in interest or a disqualified person may constitute or result in a direct or indirect prohibited transaction under Section 406 of ERISA and/or Section 4975 of the
Code, unless the investment is acquired and is held in accordance with an applicable statutory, class or individual prohibited transaction exemption. Included among these statutory exemptions are
Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code, which exempt certain transactions (including, without limitation, a sale and purchase of securities) between a Plan and a
party in interest so long as (i) such party in interest is treated as such solely by reason of providing services to the Plan, (ii) such party in interest is not a fiduciary which
renders investment advice, or has or exercises discretionary authority or control, with respect to the plan assets involved in such transaction, or an affiliate of any such person and (iii) the
Plan neither receives less than nor pays more than "adequate consideration" (as defined in such Sections) in connection with such transaction. In addition, the U.S. Department of Labor (the
"DOL")
has issued prohibited transaction class exemptions ("PTCEs") that may apply to the acquisition and holding of the notes. These class exemptions include, without limitation, PTCE 84-14 respecting
transactions determined by independent qualified professional asset managers, PTCE 90-1 respecting insurance company pooled separate accounts, PTCE 91-38 respecting bank collective 

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investment
funds, PTCE 95-60 respecting life insurance company general accounts and PTCE 96-23 respecting transactions determined by in-house asset managers. Furthermore, newly issued class
exemptions, such as the "Best Interests Contract Exemption" (PTCE 2016-01) and the "Principal Transaction Exemption" (PTCE 2016-02), once they become effective, may provide relief for certain
transactions involving investment advice fiduciaries. There can be no assurance that all of the conditions of any such exemptions will be satisfied. 

        Because
of the foregoing, the notes may not be acquired or held by any person investing "plan assets" of any Plan, unless such acquisition and holding will not constitute a non-exempt
prohibited transaction under ERISA and the Code or violate any applicable Similar Laws. 

Representation  

        Accordingly, by its acceptance of a note, each purchaser and holder of notes, and subsequent transferee will be deemed to have represented and
warranted that either (i) it is not a Plan and no portion of the assets used to acquire or hold the notes constitutes assets of any Plan or (ii) the acquisition and holding of the notes
by such purchaser or transferee will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation under any
applicable Similar Laws. 

        The
foregoing discussion is general in nature and is not intended to be all inclusive. Due to the complexity of these rules and the penalties that may be imposed upon persons involved in
non-exempt prohibited transactions, it is particularly important that fiduciaries or other persons considering purchasing notes on behalf of, or with the assets of, any Plan, consult with their
counsel regarding the potential applicability of ERISA, Section 4975 of the Code and any Similar Laws to such investment and whether an exemption would be applicable. The acquisition, holding
and, to the extent relevant, disposition of notes by or to any Plan is in no respect a representation by us or any of our affiliates or representatives that such an investment meets all relevant legal
requirements with respect to investments by such Plans generally or any particular Plan, or that such an investment is appropriate for Plans generally or any particular Plan. 

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  Material U.S. Federal Income Tax Consequences    
    

        The following is a discussion of the material U.S. federal income tax consequences relevant to the purchase, ownership and disposition of the
notes, but does not purport to be a complete analysis of all potential tax effects. The discussion is based upon the Code, United States Treasury Regulations issued thereunder, United States Internal
Revenue Service ("IRS") rulings and pronouncements, and judicial decisions, all as of the date hereof and all of which are subject to change at any time and differing interpretations. Any such change
may be applied retroactively in a manner that could adversely affect a holder of the notes. We have not sought and will not seek any ruling from the IRS with respect to the statements made and the
conclusions reached in the following discussion, and there can be no assurance that the IRS or a court will agree with such statements and conclusions. 

        This
discussion does not address all of the U.S. federal income tax consequences that may be relevant to a holder in light of such holder's particular circumstances or to holders subject
to special rules, including, without limitation:

	•
	 banks, insurance companies and other financial institutions; 

	•
	 United States expatriates and former citizens or long-term residents of the United States; 

	•
	 holders subject to the alternative minimum tax; 

	•
	 dealers in securities or currencies; 

	•
	 traders in securities; 

	•
	 partnerships, S corporations and other pass-through entities for U.S. federal income tax purposes (and investors in such entities);  

	•
	 controlled foreign corporations; 

	•
	 passive foreign investment companies; 

	•
	 tax-exempt organizations; 

	•
	 U.S. Holders (as defined below) whose functional currency is not the U.S. dollar; 

	•
	 real estate investment trusts and regulated investment companies; 

	•
	 persons holding the notes as part of a "straddle," "hedge," "conversion transaction" or other risk reduction transaction or integrated
investment; and 

	•
	 persons deemed to sell the notes under the constructive sale provisions of the Code. 

        In
addition, this discussion is limited to persons purchasing the notes for cash at original issue and at their "issue price" within the meaning of Section 1273 of the Code
(i.e., the first price at which a substantial amount of the notes is sold to the public for cash). Moreover, the effects of Medicare contribution tax and other U.S. federal tax laws (such as
estate and gift tax laws) and any applicable state, local or foreign tax laws are not discussed. The discussion deals only with notes held as "capital assets" within the meaning of Section 1221
of the Code. 

        If
an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds the notes, the tax treatment of the partners in the partnership will generally depend on
the status of the particular partner in question and the activities of the partnership. Such partners should consult their own tax advisors as to the specific tax consequences to them of holding the
notes indirectly through ownership of their partnership interests. 

        YOU
ARE URGED TO CONSULT YOUR TAX ADVISOR WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO YOUR PARTICULAR SITUATION AS WELL AS ANY TAX CONSEQUENCES OF THE
PURCHASE, OWNERSHIP 

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AND
DISPOSITION OF THE NOTES ARISING UNDER THE FEDERAL ESTATE, GIFT OR MEDICARE CONTRIBUTION TAX RULES OR UNDER THE LAWS OF ANY STATE, LOCAL, NON-U.S. OR OTHER TAXING JURISDICTION OR UNDER ANY
APPLICABLE TAX TREATY. 

Tax Consequences Applicable to U.S. Holders  

Definition of a U.S. Holder  

        For purposes of this discussion, a "U.S. Holder" is a beneficial owner of a note that is for U.S. federal income tax
purposes:

	•
	 an individual who is a citizen or resident of the United States; 

	•
	 a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized under the laws of the United
States, any state thereof, or the District of Columbia; 

	•
	 an estate, the income of which is subject to U.S. federal income tax regardless of its source; or 

	•
	 a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more United States persons (within the
meaning of Section 7701(a)(30) of the Code), or (2) has made a valid election under applicable Treasury Regulations to continue to be treated as a United States person. 

Payments of Stated Interest  

        Stated interest on a note generally will be taxable to a U.S. Holder as U.S. source ordinary income at the time such interest is received or
accrued, in accordance with such U.S. Holder's method of accounting for U.S. federal income tax purposes. It is expected, and this summary assumes, that the notes will not be treated as issued with
"original issue discount" for U.S. federal income tax purposes. 

        A
U.S. Holder that uses the cash method of accounting for U.S. federal income tax purposes and that receives a payment of stated interest on the notes will be required to include in
income (as U.S. source ordinary income) the U.S. dollar value of the euro interest payment (determined based on the spot rate of exchange on the date such payment is received) regardless of whether
the payment is in fact converted to U.S. dollars at such time. A cash method U.S. Holder will not recognize exchange gain or loss with respect to the receipt of such stated interest, but may have
exchange gain or loss attributable to the actual disposition of the euro so received. 

        A
U.S. Holder that uses the accrual method of accounting for U.S. federal income tax purposes will be required to include in income (as U.S. source ordinary income) the U.S. dollar value
of the stated interest in euros that has accrued with respect to the notes during an accrual period. The U.S. dollar value of such accrued stated interest will be determined by translating such
interest at the average spot rate of exchange for the accrual period or, with respect to an accrual period that spans two taxable years, at the average spot rate of exchange for the partial period
within each taxable year. An accrual basis U.S. Holder may elect, however, to translate such accrued stated interest into U.S. dollars using the spot rate of exchange on the last day of the accrual
period or, with respect to an accrual period that spans two taxable years, using the spot rate of exchange on the last day of the of the portion of the accrual period within each taxable year.
Alternatively, if the last day of an accrual period is within five business days of the date of receipt of the accrued stated interest, a U.S. Holder that has made the election described in the prior
sentence may translate such interest using the spot rate of exchange on the date of receipt. The above election will apply to other debt instruments held by an electing U.S. Holder and may not be
changed without the consent of the IRS. 

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        A
U.S. Holder that uses the accrual method of accounting for U.S. federal income tax purposes will recognize exchange gain or loss with respect to accrued stated interest on the date
such interest is received. The amount of exchange gain or loss recognized will equal the difference, if any, between the U.S. dollar value of the euro payment received (determined based on the spot
rate of exchange on the date such interest is received) in respect of the relevant accrual period and the U.S. dollar value of the
stated interest income that has accrued during such accrual period (as determined above), regardless of whether the payment is in fact converted to U.S. dollars at such time. Any such exchange gain or
loss generally will constitute U.S. source ordinary income or loss. 

Sale, Exchange, Redemption, Retirement, or Other Taxable Disposition of Notes  

        Upon the sale, exchange, redemption, retirement or other taxable disposition of a note, a U.S. Holder generally will recognize gain or loss
equal to the difference, if any, between the amount realized upon such disposition (less any amount equal to any accrued but unpaid stated interest, which will be taxable as stated interest income as
discussed above to the extent not previously included in income by the U.S. Holder) and such U.S. Holder's adjusted tax basis in the note. 

        If
a U.S. Holder receives foreign currency on such a sale, exchange, redemption, retirement or other taxable disposition of a note, the amount realized generally will be based on the
U.S. dollar value of such foreign currency translated at the spot rate of exchange on the date of the taxable disposition. In the case of a note that is traded on an established securities market, a
cash basis U.S. Holder and, if it so elects, an accrual basis U.S. Holder, will determine the U.S. dollar value of such foreign currency by translating such amount at the spot rate of exchange on the
settlement date of the disposition. The special election available to accrual basis U.S. Holders in regard to the sale or other disposition of notes traded on an established securities market must be
applied consistently to all debt instruments held by the U.S. Holder and cannot be changed without the consent of the IRS. If a note is traded on an established securities market, but the relevant
U.S. Holder is an accrual basis taxpayer that has not made the settlement date election, the U.S. Holder will recognize exchange gain or loss (generally taxable as U.S. source ordinary income or loss)
to the extent that there are exchange rate fluctuations between the trade date and the settlement date. In the event the note is not traded on an established securities market, U.S. Holders who are
cash basis taxpayers should consult their tax advisors regarding the foreign currency tax consequences of a disposition (including whether the U.S. dollar value of the amount realized should be
determined on the trade date or the settlement date). 

        A
U.S. Holder's adjusted tax basis in a note will, in general, be the cost of such note to such U.S. Holder. If a U.S. Holder uses foreign currency to purchase a note, the cost of the
note generally will be the U.S. dollar value of the foreign currency purchase price determined at the spot rate of exchange on the date of purchase. The conversion of U.S. dollars to a foreign
currency and the immediate use of that currency to purchase a note generally will not result in taxable gain or loss for a U.S. Holder. 

        Any
gain or loss recognized upon the sale, exchange, redemption, retirement or other taxable disposition of a note generally will be U.S. source gain or loss and, except as discussed
below with respect to exchange gain or loss, generally will be capital gain or loss. Capital gains of non-corporate U.S. Holders (including individuals) derived in respect of capital assets held for
more than one year are generally eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations. 

        Upon
the sale, exchange, redemption, retirement or other taxable disposition of a note, U.S. Holders may recognize exchange gain or loss that is attributable to fluctuations in currency
exchange rates with respect to the principal amount of such note. Exchange gain or loss attributable to fluctuations in currency exchange rates with respect to the principal amount of a note generally
will equal the difference, if any, between (i) the U.S. dollar value of the U.S. Holder's foreign currency purchase price for the note, determined at the spot rate of exchange on the date the
U.S. Holder 

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disposes
of the note and (ii) the U.S. dollar value of the U.S. Holder's foreign currency purchase price for the note, determined at the spot rate of exchange on the date the U.S. Holder
purchased such note (or, possibly, in the case of cash basis or electing accrual basis U.S. Holders, the settlement date of any such disposition, provided the note is traded on an established
securities market). Any such exchange gain or loss generally will constitute U.S. source ordinary income or loss. In addition, upon the sale, exchange, redemption, retirement or other taxable
disposition of a note, a U.S. Holder may realize exchange gain or loss attributable to amounts received with respect to accrued and unpaid stated interest , which will be treated as discussed above
under "—Payments of Stated Interest.". However, upon such a sale, exchange, redemption, retirement or other taxable disposition of a note, a U.S. Holder will realize any exchange gain or
loss (including with respect to principal and accrued interest) only to the extent of total gain or loss realized by such U.S. Holder on such disposition. 

Tax Return Disclosure Requirements  

        United States Treasury Regulations meant to require the reporting of certain tax shelter transactions cover certain transactions generally not
regarded as tax shelters, including certain foreign currency transactions giving rise to losses in excess of certain thresholds. U.S. Holders should consult their tax advisors to determine the tax
return disclosure obligations, if any, with respect to an investment in the notes, including any requirement to file IRS Form 8886 (Reportable Transaction Disclosure Statement). 

Information Reporting and Backup Withholding  

        In general, information reporting requirements will apply to payments of stated interest on the notes and to the proceeds of the sale or other
disposition (including a retirement or redemption) of a note paid to a U.S. Holder unless such U.S. Holder is an exempt recipient, and, when required, provides evidence of such exemption. Backup
withholding may apply to such payments if the U.S. Holder fails to provide a taxpayer identification number or a certification that it is not subject to backup withholding. 

        Backup
withholding is not an additional tax and any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a U.S. Holder's U.S. federal income
tax liability provided the required information is timely furnished to the IRS. 

Tax Consequences Applicable to Non-U.S. Holders  

Definition of a Non-U.S. Holder  

        For purposes of this discussion, a "non-U.S. Holder" is a beneficial owner of a note that is an individual, corporation, estate or trust for
U.S. federal income tax purposes and is not a U.S. Holder. 

Payments of Interest  

        Subject to the discussion below of backup withholding and FATCA, interest on a note that is not effectively connected with the non-U.S. Holder's
conduct of a U.S. trade or business generally will not be subject to U.S. federal withholding tax provided that:

	•
	 the non-U.S. Holder does not directly or indirectly, actually or constructively, own 10% or more of the total combined voting power of all
classes of our voting stock; 

	•
	 the non-U.S. Holder is not a controlled foreign corporation that is related to us through actual or constructive stock ownership and is not a
bank that received such note on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business; and 

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	•
	 either (1) the non-U.S. Holder certifies in a statement provided to us or the applicable withholding agent, under penalties of perjury,
that it is not a "United States person" within the meaning of Section 7701(a)(30) of the Code and provides its name and address, (2) a securities clearing organization, bank or other
financial institution that holds customers' securities in the ordinary course of its trade or business and holds the note on behalf of the non-U.S. Holder certifies to us or the applicable withholding
agent under penalties of perjury that it, or the financial institution between it and the non-U.S. Holder, has received from the non-U.S. Holder a statement, under penalties of perjury, that such
holder is not a United States person and provides us or the applicable withholding agent with a copy of such statement or (3) the non-U.S. Holder holds its note directly through a "qualified
intermediary" and certain conditions are satisfied. 

        If
a non-U.S. Holder cannot satisfy the requirements described above, payments of interest will generally be subject to a 30% U.S. federal withholding tax. Even if the above conditions
are not met, however, a non-U.S. Holder may be entitled to a reduction in or an exemption from withholding tax on interest if the non-U.S. Holder provides us or the applicable withholding agent with a
properly executed (1) IRS Form W-8BEN or W-8BEN-E, as applicable, claiming an exemption from or reduction of the withholding tax under the benefit of a tax treaty between the United
States and the non-U.S. Holder's country of residence or (2) IRS Form W-8ECI stating that interest paid on the note is not subject to withholding tax because it is effectively connected
with the conduct by the non-U.S. Holder of a trade or business in the United States. 

        If
interest paid to a non-U.S. Holder is effectively connected with the non-U.S. Holder's conduct of a U.S. trade or business (and, if required by an applicable income tax treaty, the
non-U.S. Holder maintains a United States permanent establishment to which such interest is attributable), then, although exempt from U.S. federal withholding tax (provided the non-U.S. Holder
provides appropriate certification), the non-U.S. Holder generally will be subject to U.S. federal income tax on such interest in the same manner as if such non-U.S. Holder were a U.S. Holder. In
addition, if the non-U.S. Holder is a foreign corporation, any effectively connected earnings and profits may be subject to a branch profits tax at a rate of 30% or lower applicable treaty rate. 

Sale, Exchange, Redemption, Retirement, or Other Taxable Disposition of Notes  

        Subject to the discussion below of backup withholding and FATCA, any gain realized by a non-U.S. Holder on the sale, exchange, redemption,
retirement or other taxable disposition of a note (other than any amount allocable to accrued and unpaid interest, which is taxable as interest and may be subject to the rules discussed above in
"—Payments of Interest") generally will not be subject to U.S. federal income tax unless:

	•
	 the gain is effectively connected with the non-U.S. Holder's conduct of a trade or business in the United States (and, if required by an
applicable income tax treaty, the non-U.S. Holder maintains a United States permanent establishment to which such gain is attributable); or 

	•
	 the non-U.S. Holder is an individual who is present in the United States for 183 days or more in the taxable year of the sale, exchange
or other disposition, and certain conditions are met. 

        A
non-U.S. Holder described in the first bullet point above will be required to pay U.S. federal income tax on the net gain derived from the disposition generally in the same manner as
if such non-U.S. Holder were a U.S. Holder, and if such non-U.S. Holder is a foreign corporation, an additional branch profits tax at a 30% rate (or a lower rate if so specified by an applicable
income tax treaty) may apply to any effectively connected earnings and profits. A non-U.S. Holder described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30%
(or, if applicable, a lower treaty rate) on the gain derived from the disposition, which may be offset by certain U.S. 

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source
capital losses, even though the non-U.S. Holder is not considered a resident of the United States. 

Information Reporting and Backup Withholding  

        A non-U.S. Holder generally will not be subject to backup withholding and information reporting with respect to payments that are made to the
non-U.S. Holder under the notes, provided that the payor does not have actual knowledge or reason to know that such holder is a "United States person," within the meaning of Section 7701(a)(30)
of the Code, and the holder has provided the statement described above under "—Payments of Interest." In addition, a non-U.S. Holder will not be subject to backup withholding or
information reporting with respect to the proceeds of the sale of a note within the United States or conducted through certain U.S.-related brokers if the payor receives the statement described above
and does not have actual knowledge or reason to know that such holder is a United States person or the holder otherwise establishes an exemption. However, we or the applicable withholding agent
may be required to report annually to the IRS and to the non-U.S. Holder the amount of interest paid to the non-U.S. Holder and any tax withheld with respect to such interest, regardless of whether
any tax was actually withheld. Copies of these information returns may also be made available under the provisions of a specific treaty or agreement to the tax authorities of the country in which the
non-U.S. Holder resides. 

        Backup
withholding is not an additional tax and any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a non-U.S. Holder's U.S. federal
income tax liability provided the required information is timely furnished to the IRS. 

Additional Withholding Tax on Payments Made to Foreign Accounts  

        Withholding taxes may be imposed under the Foreign Account Tax Compliance Act ("FATCA") on certain types of payments made to non-U.S. financial
institutions and certain other non-U.S. entities. Specifically, a 30% U.S. federal withholding tax may be imposed on interest on, or gross proceeds from the sale or other disposition of, debt
instruments paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), unless (1) the foreign financial institution undertakes certain
diligence and reporting obligations, (2) the non-financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes
identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these
rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in (1) above, it must enter into an agreement with the U.S. Department of the
Treasury requiring, among other things, that it undertake to identify accounts held by certain "specified United States persons" or "United States owned foreign entities" (each as defined in the
Code), annually report certain information about such accounts, and withhold 30% on payments to non-compliant foreign financial institutions and certain other account holders. 

        Withholding
under FATCA will apply to payments of interest on the notes regardless of when made and to payments of gross proceeds from the sale or other disposition of the notes on or
after January 1, 2019. 

        Non-U.S.
governments have entered into agreements with the United States (and additional non-U.S. governments are expected to enter into such agreements) to implement FATCA in a manner
that alters the rules described herein. Holders should consult their own tax advisors on how these rules may apply to their investment in the notes. In the event any withholding under FATCA is
required or advisable with respect to any payments on the notes, there will be no additional amounts payable to compensate for the withheld amount. 

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  Underwriting    
    

        Under the terms and subject to the conditions contained in an underwriting agreement, the underwriters named below (the "underwriters"), for
whom HSBC Bank plc, J.P. Morgan Securities plc and Merrill Lynch International are acting as representatives (the "representatives"), have each severally but not jointly agreed to
purchase, and we have agreed to sell to them the respective principal amount of notes set forth opposite their names below: 

 

 
 

					
	Underwriter

 
	 	Principal amount

of notes 	 
	 HSBC Bank plc
	 	

€	133,330,000	 
	 J.P. Morgan Securities plc
	 	

€	133,330,000	 
	 Merrill Lynch International
	 	

€	133,330,000	 
	 MUFG Securities EMEA plc
	 	

€	24,150,000	 
	 Standard Chartered Bank
	 	

€	24,150,000	 
	 Mizuho International plc
	 	

€	17,210,000	 
	 SMBC Nikko Capital Markets Limited
	 	

€	17,250,000	 
	 Wells Fargo Securities International Limited
	 	

€	17,250,000	 
	 Total
	 	

€	500,000,000 	 
	

 ​	​	​

 	​

 	​
	

 ​	​	​	​	​
	

 ​	​	​

 	​

 	​ 

 

         The
underwriting agreement provides that the underwriters are obligated to purchase all of the notes if any are purchased. 

        The
underwriters initially propose to offer the notes to the public at the public offering price that appears on the cover page of this prospectus supplement. After the initial offering,
the underwriters may change the public offering price and other selling terms. The underwriters may offer and sell notes through certain of their affiliates. 

        We
have agreed to indemnify the several underwriters against certain liabilities, including liabilities under the Securities Act, or to contribute to payments that the underwriters may
be required to make in respect thereof. 

        The
following table shows the underwriting discounts that we will pay to the underwriters in connection with this offering of notes (expressed as a percentage of the principal amount of
the notes and in the aggregate): 

 

 
 

					
	 
	 	Paid by Avery

Dennison Corporation 	 
	 Per 1.250% note due 2025
	 	 	0.550	% 
	

 ​	​	​

 	​

 	​
	 Total
	 	

€	2,750,000 	 
	

 ​	​	​

 	​

 	​
	

 ​	​	​	​	​
	

 ​	​	​

 	​

 	​ 

 

         The
aggregate proceeds to us are set forth on the cover page of this prospectus supplement before deducting our expenses in offering the notes. We estimate that we will pay approximately
€1.2 million for expenses, excluding underwriting discounts, allocable to the offering. 

        We
have agreed for a period from the date of this prospectus supplement through and including the issue date of the notes, without the prior written consent of the representatives, not
to offer, sell, contract to sell or otherwise dispose of any debt securities that are issued or guaranteed by us and that have a tenor of more than one year. 

        The
notes are new issues of securities with no established trading market. The underwriters have informed us that they intend to make a secondary market in the notes. However, they are
not obligated to do so, and they may discontinue any such market making activity at any time without notice. No assurance can be given as to how liquid the trading market for the notes will be. 

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        In
connection with the issue of the notes, J.P. Morgan Securities plc (in this capacity, the "Stabilizing Manager") (or any person acting on behalf of the Stabilizing Manager) may
over-allot notes or effect transactions with a view to supporting the market price of the notes at a level higher than that which might otherwise prevail. However, stabilization may not necessarily
occur. Any stabilization action may begin on or after the date on which adequate public disclosure of the final terms of the offer of the notes is made, and, if begun, may cease at any time, but it
must end no later than the earlier of 30 days after the issue of the notes and 60 days after the date of the allotment of the notes. Such stabilization shall be carried out in accordance
with applicable laws and regulations. Any loss or profit sustained as a consequence of any such over-allotment or stabilization shall be for the account of the Stabilizing Manager. 

        The
underwriters also may impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the
representatives have repurchased notes sold by or for the account of such underwriter in stabilizing or short covering transactions. 

        Any
of these activities may have the effect of preventing or lessening a decline in the market prices of the notes. They may also cause the price of the notes to be higher than the price
that otherwise would exist in the open market in the absence of these transactions. The Stabilizing Manager may conduct these transactions in the over-the-counter market or otherwise. If the
Stabilizing Manager commences any of these transactions, it may discontinue them at any time. 

        Neither
we nor the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of the
notes. In addition, neither we nor the underwriters make any representation that the underwriters will engage in these transactions or that these transactions, once commenced, will not be discontinued
without notice. 

        In
the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and
equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers. Such investment and securities
activities may involve our securities and instruments. If any of the underwriters or their affiliates have a lending relationship with us, certain of those underwriters or their affiliates routinely
hedge, and certain other of those underwriters or their affiliates may hedge, their credit exposure to us consistent with their customary risk management policies. Typically, these underwriters and
their affiliates would hedge such exposure by entering into transactions that consist of either the purchase of credit default swaps or the creation of short positions in our securities, including
potentially the notes offered hereby. Any such credit default swaps or short positions could adversely affect future trading prices of the notes offered hereby. The underwriters and their affiliates
may also make investment recommendations and/or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients that they
acquire, long and/or short positions in such securities and instruments. 

        Some
of the underwriters and their affiliates have engaged in, and may in the future engage in, investment banking and other commercial dealings in the ordinary course of business with
us. They
have received customary fees and commissions for these transactions. Affiliates of the underwriters serve various roles under our existing revolving credit agreement. JPMorgan Chase Bank, N.A., an
affiliate of J.P. Morgan Securities plc, serves as documentation agent and a lender under our existing revolving credit agreement, and Bank of America, N.A., an affiliate of Merrill Lynch
International, serves as administrative agent and a lender under our existing revolving credit agreement. In addition, HSBC Bank plc, MUFG Securities EMEA plc, Standard Chartered Bank, Mizuho
International plc, SMBC Nikko Capital Markets Limited and Wells Fargo Securities International Limited or their respective affiliates are lenders under our existing revolving credit agreement. 

S-45

 

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        Certain
of the underwriters are not United States registered broker-dealers and, therefore, to the extent that they intend to transact any sales of the notes in the United States, they
will do so through one or more United States registered broker-dealers as permitted by Financial Industry Regulatory Authority regulations. 

        It
is expected that delivery of the notes will be made against payment therefor on or about March 3, 2017, which will be the fifth business day following the date of pricing of
the notes (such settlement period being herein referred to as T+5). Purchasers of notes should be aware that the ability to settle secondary market trades of the notes effected on the date of pricing
may be affected by the T+5 settlement. 

Selling restrictions  

Notice to Prospective Investors in the European Economic Area  

        In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a "Relevant Member State"),
each underwriter has represented and agreed that with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State (the "Relevant Implementation
Date") it has not made
and will not make an offer of notes to the public which are the subject of the offering contemplated by this prospectus supplement in that Relevant Member State other than: 

	(a)
	to
any legal entity which is a qualified investor as defined in the Prospectus Directive;

	(b)
	to
fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Directive), subject to obtaining the prior consent of the
dealer or dealers nominated by us for any such offer; or

	(c)
	in
any other circumstances falling within Article 3(2) of the Prospectus Directive, 

provided
that no such offer of notes shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to
Article 16 of the Prospectus Directive. 

        For
the purposes of this provision, the expression "an offer of notes to the public" in relation to any notes in any Relevant Member State means the communication in any form and by any
means of sufficient information on the terms of the offer and the notes to be offered so as to enable an investor to decide to purchase or subscribe for the notes, as the same may be varied in that
Member State by any measure implementing the Prospectus Directive in that Relevant Member State, the expression "Prospectus Directive" means Directive 2003/71/EC (as amended, including by Directive
2010/73/EU), and includes any relevant implementing measure in the Relevant Member State. 

Notice to Prospective Investors in the United Kingdom  

        Each underwriter has represented and agreed that: 

	(a)
	it
has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment
activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of the notes in circumstances in which Section 21(1) of the FSMA does not
apply to the Issuer; and

	(b)
	it
has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the notes in, from or otherwise
involving the United Kingdom. 

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Notice to Prospective Investors in Japan  

        The notes have not been and will not be registered pursuant to Article 4, Paragraph 1 of the Financial Instruments and Exchange
Act. Accordingly, none of the notes nor any interest therein may be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any "resident" of Japan (which term as used herein
means any person resident in Japan, including any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to or for
the benefit of a resident of Japan, except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the Financial Instruments and Exchange Act and any other
applicable laws, regulations and ministerial guidelines of Japan in effect at the relevant time. 

Notice to Prospective Investors in Hong Kong  

        Each underwriter (i) has not offered or sold and will not offer or sell in Hong Kong, by means of any document, any notes other than
(a) to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong (the "SFO") and any rules made under that Ordinance; or (b) in other
circumstances which do not result in the document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong or which do not
constitute an offer to the public within the meaning of that Ordinance; and
(ii) has not issued or had in its possession for the purposes of issue, and will not issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any
advertisement, invitation or document relating to the notes, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so
under the securities laws of Hong Kong) other than with respect to the notes which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as
defined in the SFO and any rules made under that Ordinance. 

Notice to Prospective Investors in Singapore  

        This prospectus supplement has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, each underwriter has
not offered or sold any notes or caused such notes to be made the subject of an invitation for subscription or purchase and will not offer or sell such notes or cause such notes to be made the subject
of an invitation for subscription or purchase, and has not circulated or distributed, nor will it circulate or distribute, this prospectus supplement or any other document or material in connection
with the offer or sale, or invitation for subscription or purchase, of such notes, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under
Section 274 of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA"), (ii) to a relevant person pursuant to Section 275(1), or any person pursuant to
Section 275(1A), and in accordance with the conditions specified in Section 275, of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other
applicable provision of the SFA. 

        Where
the notes are subscribed or purchased under Section 275 of the SFA by a relevant person which is: (a) a corporation (which is not an accredited investor (as defined
in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor;
or (b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor,
securities (as defined in Section 239(1) of the SFA) of that corporation or the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferred within six months
after that corporation or that trust has acquired the notes pursuant to an offer made under Section 275 of the SFA, except: (i) to an institutional investor under Section 274 of
the SFA or to a relevant person (as defined in Section 275(2) of the SFA), or to any person arising from an offer referred to in Section 275(1A), or Section 276(4)(i)(B) of the
SFA; (ii) where no 

S-47

 

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consideration
is or will be given for the transfer; (iii) where the transfer is by operation of law; (iv) as specified in Section 276(7) of the SFA; or (v) as specified in
Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore. 

Notice to Prospective Investors in Switzerland  

        This document is not intended to constitute an offer or solicitation to purchase or invest in the notes described herein. The notes may not be
publicly offered, sold or advertised, directly or indirectly, in, into or from Switzerland and will not be listed on the SIX Swiss Exchange or on any other exchange or regulated trading facility in
Switzerland. Neither this document nor any other offering or marketing material relating to the notes constitutes a prospectus as such term is understood pursuant to article 652a or
article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange or any other regulated trading facility in Switzerland,
and neither this document nor any other offering or marketing material relating to the notes may be publicly distributed or otherwise made publicly available in Switzerland. 

S-48

 

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  Legal Matters    
    

        The validity of the notes will be passed upon for us by Latham & Watkins LLP, Los Angeles, California, and for the underwriters by
Simpson Thacher & Bartlett LLP, New York, New York. 

 
 

  Experts    
    

        The financial statements and management's assessment of the effectiveness of internal control over financial reporting (which is included in
Management's Report on Internal Control over Financial Reporting) incorporated in this prospectus supplement and the accompanying prospectus by reference to the Annual Report on Form 10-K for
the year ended December 31, 2016 have been so incorporated in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the
authority of said firm as experts in auditing and accounting. 

S-49

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PROSPECTUS 

AVERY DENNISON CORPORATION  

Common Stock  

 Preferred Stock  

 Depositary Shares  

 Debt Securities  

 Warrants  

 Purchase Contracts  

 Units  

              We may offer and sell the securities in any combination from time to time in one or more offerings. The preferred stock, depositary shares, debt
securities, warrants, purchase contracts and units may be convertible into or exercisable or exchangeable for our common stock, our preferred stock or our other securities. This prospectus provides
you with a general description of the securities we may offer. 

              Each
time we sell securities we will provide a supplement to this prospectus that contains specific information about the offering and the terms of the securities. The supplement may
also add, update or change information contained in this prospectus. You should carefully read this prospectus and any supplement before you invest in any of our securities. 

              We
may sell the securities described in this prospectus and any prospectus supplement to or through one or more underwriters, dealers and agents, or directly to purchasers, or through a
combination of these methods, on a continuous or delayed basis. The names of any underwriters will be included in the applicable prospectus supplement. 

              Our
common stock trades on the New York Stock Exchange under the symbol "AVY." Our principal executive offices are located at 207 Goode Avenue, Glendale, California 91203.
Our main telephone number is (626) 304-2000. 

              Investing in our securities involves risks. See "Risk Factors" on page 1 of this prospectus and any similar section contained in the applicable prospectus
supplement and in the documents we incorporate by reference in this prospectus to read about factors you should consider before investing in our securities.

              Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or
accuracy of this prospectus. Any representation to the contrary is a criminal offense.

The
date of this prospectus is April 29, 2016. 

Table of Contents 

 

 

  TABLE OF CONTENTS    
    

 

 

 
 

			
	 
	 	Page 
	 ABOUT THIS PROSPECTUS
	 	1
	 RISK FACTORS
	 	1
	 WHERE YOU CAN FIND MORE INFORMATION
	 	2
	 INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
	 	3
	 FORWARD-LOOKING STATEMENTS
	 	4
	 AVERY DENNISON CORPORATION
	 	5
	 RATIO OF EARNINGS TO FIXED CHARGES
	 	5
	 USE OF PROCEEDS
	 	5
	 DESCRIPTION OF SECURITIES
	 	6
	 DESCRIPTION OF COMMON STOCK AND PREFERRED STOCK
	 	6
	 VALIDITY OF THE SECURITIES
	 	9
	 EXPERTS
	 	9

 

 

 

 

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  ABOUT THIS PROSPECTUS    
    

              This prospectus is part of an "automatic shelf" registration statement that we filed with the United States Securities and Exchange
Commission, or the SEC, as a "well-known seasoned issuer" as defined in Rule 405 under the Securities Act of 1933, as amended, or the Securities Act, using a "shelf" registration process. By
using a shelf registration statement, we may sell any combination of our common stock, preferred stock, depositary shares, debt securities, warrants, purchase contracts and units from time to time and
in one or more offerings. Each time we sell securities, we will provide a supplement to this prospectus that contains specific information about the securities being offered and the specific terms of
that offering. That prospectus supplement may include a discussion of risk factors or other special considerations that apply to those securities. The
supplement may also add, update or change information contained in this prospectus. If there is any inconsistency between the information in this prospectus and any prospectus supplement, you should
rely on the prospectus supplement. Before purchasing any securities, you should carefully read both this prospectus and any prospectus supplement, together with the additional information described
under the heading "Where You Can Find More Information" and "Incorporation of Certain Documents by Reference." 

              You
should rely only on the information contained or incorporated by reference in this prospectus and in any prospectus supplement. We have not authorized any other person to provide
you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. We will not make an offer to sell these securities in any jurisdiction
where the offer or sale is not permitted. You should not assume that the information in this prospectus, any prospectus supplement or any document incorporated by reference is accurate or complete for
any date other than the date indicated on the cover page of such document. Our business, financial condition, results of operations and prospects may have changed since any such date. 

              When
we refer to "we," "our" and "us" in this prospectus, we mean Avery Dennison Corporation and its subsidiaries, unless the context otherwise requires or as otherwise expressly
stated. When we refer to "you" or "yours," we mean the holders of the applicable series of securities. 

 
 

  RISK FACTORS    
    

              Investment in any securities offered pursuant to this prospectus involves risks and uncertainties. You should carefully consider the risk
factors incorporated herein by reference to our most recent Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q, along with the other information
contained in this prospectus, as updated by our subsequent filings under the Securities Exchange Act of 1934, as amended, or the Exchange Act, and the risk factors and other information contained in
the applicable prospectus supplement, before acquiring any of our securities. If one or more of the events discussed in these risk factors were to occur, our business, financial condition, results of
operations or liquidity, as well as the value of an investment in our securities, could be materially adversely affected. 

1

 

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  WHERE YOU CAN FIND MORE INFORMATION    
    

              We file reports, proxy statements and other information with the SEC. Information we file with the SEC can be inspected and copied at the
Public Reference Room maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. You may also obtain copies of this information by mail from the Public Reference Section
of the SEC at prescribed rates. Further information on the operation of the SEC's Public Reference Room in Washington, D.C. can be obtained by calling the SEC at 1-800-SEC-0330. 

              The
SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements and other information about issuers, including us, who file electronically with
the SEC. Our website address is www.averydennison.com. The information on our website, however, is not, and should not be deemed to be, a part of this prospectus. 

              This
prospectus and any prospectus supplement are part of a registration statement that we filed with the SEC and do not contain all of the information in the registration statement.
The full registration statement may be obtained from the SEC, as indicated below, or us, as indicated under the heading "Incorporation of Certain Documents by Reference." Forms of the indenture and
other documents establishing the terms of the offered securities are filed as exhibits to the registration statement. Statements in this prospectus or any prospectus supplement about these documents
are summaries and each statement is qualified in all respects by reference to the document to which it refers. You should refer to the actual documents for a more complete description of the relevant
matters. You may inspect a copy of the registration statement at the SEC's Public Reference Room in Washington, D.C., obtain a copy of the registration statement by mail from the Public
Reference Section of the SEC at prescribed rates or view it on the SEC's website. 

2

 

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  INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE    
    

              The rules of the SEC allow us to "incorporate by reference" information into this prospectus, which means that we can disclose important
information to you by referring you to another document filed separately with the SEC. The information incorporated by reference is deemed to be part of this prospectus, and later information that we
file with the SEC will automatically update and supersede that information. Any statement contained in a previously filed document incorporated by reference shall be deemed to be modified or
superseded for purposes of this prospectus to the extent that a statement contained in this prospectus modifies or replaces that statement. We incorporate by reference our documents listed below and
any future filings made by us with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act between the date of this prospectus and the termination of the offering of the
securities described in this prospectus. We are not, however, incorporating by reference any documents or portions thereof, whether specifically listed below or filed in the future, that are not
deemed "filed" with the SEC. 

	•
	 our Annual Report on Form 10-K for the fiscal year ended January 2, 2016 (filed with the SEC on February 24, 2016),
including information specifically incorporated by reference therein from our Definitive Proxy Statement on Schedule 14A relating to our 2016 Annual Meeting of Stockholders (filed with the SEC
on March 8, 2016); 

	•
	 our Current Reports on Form 8-K filed with the SEC on February 26, 2016 and April 29, 2016;  

	•
	 the description of our common stock, par value $1.00 per share, set forth in our Current Report on Form 8-K filed with the SEC on
September 18, 2013 and any amendments or reports filed for the purpose of updating such description; and 

	•
	 the description of Preferred Share Purchase Rights set forth in our Form 8-A filed with the SEC on December 16, 1997 and any
amendments or reports filed for the purpose of updating such description. 

              You
may request a free copy of any of the documents incorporated by reference in this prospectus by writing or telephoning us at the following address: 

Corporate
Secretary

Avery Dennison Corporation

207 Goode Avenue

Glendale, California 91203

(626) 304-2000 

              Exhibits
to the filings will not be sent, however, unless those exhibits have specifically been incorporated by reference into this prospectus and any accompanying prospectus
supplement. 

3

 

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  FORWARD-LOOKING STATEMENTS    
    

              This prospectus, any accompanying prospectus supplement and the information incorporated herein and therein by reference may contain certain
"forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These statements, which are not statements of
historical fact, may contain estimates, assumptions, projections and/or expectations regarding future events, which may or may not occur. Words such as "aim," "anticipate," "assume," "believe,"
"continue," "could," "estimate," "expect," "foresee," "guidance," "intend," "may," "might," "objective," "plan," "potential," "project," "seek," "shall," "should," "target," "will," "would," or
variations thereof and other expressions, which refer to future events and trends, identify forward-looking statements. These forward-looking statements, and financial or other business targets, are
subject to certain risks and uncertainties, which could cause our actual results to differ materially from expected results, performance or achievements of the Company expressed or implied by such
forward-looking statements. 

              Certain
risks and uncertainties are discussed in more detail in Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of
Results of Operations and Financial Condition" in our Annual Report on Form 10-K for the fiscal year ended January 2, 2016 and elsewhere in other
reports and documents we file with the SEC that are incorporated by reference herein and include, but are not limited to, risks and uncertainties relating to the following: fluctuations in demand
affecting sales to customers; worldwide and local economic conditions; fluctuations in currency exchange rates and other risks associated with foreign operations, including in emerging markets; the
financial condition and inventory strategies of customers; changes in customer preferences; fluctuations in cost and availability of raw materials; our ability to generate sustained productivity
improvement; our ability to achieve and sustain targeted cost reductions; the impact of competitive products and pricing; loss of significant contracts or customers; collection of receivables from
customers; selling prices; business mix shift; timely development and market acceptance of new products, including sustainable or sustainably-sourced products; investment in development activities and
new production facilities; integration of acquisitions and completion of potential dispositions; amounts of future dividends and share repurchases; customer and supplier concentrations; successful
implementation of new manufacturing technologies and installation of manufacturing equipment; disruptions in information technology systems, including cyber-attacks or other intrusions to network
security; successful installation of new or upgraded information technology systems; data security breaches; volatility of financial markets; impairment of capitalized assets, including goodwill and
other intangibles; credit risks; our ability to obtain adequate financing arrangements and maintain access to capital; fluctuations in interest and tax rates; changes in tax laws and regulations, and
uncertainties associated with interpretations of such laws and regulations; outcome of tax audits; fluctuations in pension, insurance, and employee benefit costs; the impact of legal and regulatory
proceedings, including with respect to environmental, health and safety; changes in governmental laws and regulations; protection and infringement of intellectual property; changes in political
conditions; the impact of epidemiological events on the economy and our customers and suppliers; acts of war, terrorism, and natural disasters; and other factors. 

              We
believe that the most significant risk factors that could affect our financial performance in the near-term include: (1) the impacts of economic conditions on underlying
demand for our products and foreign currency fluctuations; (2) competitors' actions, including pricing, expansion in key markets, and product offerings; and (3) the degree to which
higher costs can be offset with productivity measures and/or passed on to customers through selling price increases, without a significant loss of volume. 

              The
forward-looking statements included in this prospectus and any accompanying prospectus supplement and the reports and documents that we incorporate by reference herein and therein
are made only as of their respective dates, and we assume no duty to update the forward-looking statements to reflect new, changed or unanticipated events or circumstances, other than as may be
required by law. 

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  AVERY DENNISON CORPORATION    
    

              We are a recognized industry leader in pressure-sensitive technology and materials, retail branding and information solutions, and
identification products for businesses and consumers worldwide. Headquartered in Glendale, California, we had net sales of $6.0 billion from continuing operations for 2015. Our products include
pressure-sensitive labeling materials; graphics and reflective solutions; retail apparel ticketing and branding systems; radio-frequency identification inlays and tags; and specialty tapes. 

              Avery
Dennison is a Delaware corporation. Our principal executive offices are located at 207 Goode Avenue, Glendale, California 91203. Our main telephone number is
(626) 304-2000. 

 
 

  RATIO OF EARNINGS TO FIXED CHARGES    
    

              Our ratios of earnings to fixed charges are as follows for the periods indicated: 

 

 
 

													
	 
	 	Fiscal Year
	 	2015
	 	2014
	 	2013
	 	2012
	 	2011 

	

 ​	​	​

 	​

	​

 	​

 	​

 	​

	​

 	​

 	​

 	​

	​

 
	 Ratio of Earnings to Fixed Charges(1)(2)
	 	 	 	5.9	 	5.0	 	5.1	 	3.2	 	2.9

 

 	(1)
	The
ratios of earnings to fixed charges were computed by dividing earnings by fixed charges. For this purpose, "earnings" consist of income from
continuing operations before taxes plus fixed charges and amortization of capitalized interest, less capitalized interest. "Fixed charges" consist of interest expense, capitalized interest and the
portion of rent expense (estimated to be 35%) on operating leases deemed representative of interest.

	(2)
	Certain
prior period amounts have been revised to reflect the impact of certain adjustments and to correct the timing of previously recorded
out-of-period adjustments.  

 

  
 

  USE OF PROCEEDS    
    

              We intend to use the net proceeds from the sale of the securities as set forth in the applicable prospectus supplement. We may invest funds not
required immediately for those purposes in short-term investment grade securities. 

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  DESCRIPTION OF SECURITIES    
    

              We may issue from time to time, in one or more offerings, the following securities:

	•
	 common stock; 

	•
	 preferred stock; 

	•
	 depositary shares; 

	•
	 debt securities; 

	•
	 warrants to purchase debt securities, common stock, preferred stock or depositary shares; 

	•
	 purchase contracts to purchase common stock, preferred stock or depositary shares; and 

	•
	 units. 

              We
will set forth in the applicable prospectus supplement a description of the common stock, preferred stock, depositary shares, debt securities, warrants, purchase contracts and units
that may be offered under this prospectus. The terms of the offering of securities, the initial offering price and the net proceeds to us will be contained in the prospectus supplement, and other
offering material, relating to the offer. The supplement may also add, update or change information contained in this prospectus. You should carefully read this prospectus and any supplement before
you invest in any of our securities. 

 
 

  DESCRIPTION OF
  COMMON STOCK AND PREFERRED STOCK    
    

              The following description of our common stock and preferred stock is only a summary and is qualified in its entirety by reference to our
certificate of incorporation and bylaws. Therefore, you should read carefully our Amended and Restated Certificate of Incorporation, as amended, or the Amended and Restated Certificate, and our
bylaws, as amended and restated, copies of which are incorporated by reference as exhibits to the registration statement of which this prospectus is a part. 

General  

              This prospectus describes certain general terms of our capital stock. For a more detailed description of these securities, we refer you to the
applicable provisions of the Delaware General Corporation Law, or DGCL, and our Amended and Restated Certificate. When we offer to sell a particular series of our preferred stock, we will describe the
specific terms of the series in a supplement to this prospectus. Accordingly, for a description of the terms of any series of our preferred stock, you must refer to both the prospectus supplement
relating to that series and the description of our preferred stock set forth in this prospectus. 

              Pursuant
to our Amended and Restated Certificate, our authorized capital stock consists of 400,000,000 shares of common stock, par value $1.00 per share, and
5,000,000 shares of preferred stock, par value $1.00 per share. As of January 30, 2016, we had 89,430,815 shares of common stock outstanding and no shares of preferred stock
outstanding. 

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Common Stock  

Voting Rights  

              Unless otherwise provided in our Amended and Restated Certificate, the DGCL, or other applicable law, the holders of our common stock are
entitled to one vote per share on all matters voted upon by the stockholders, subject to any preferential rights that our board of directors may grant in connection with the future issuance of
preferred stock. Shares of our common stock do not have cumulative voting rights. If a quorum is present, the affirmative vote of a majority in voting power of the shares represented at the meeting
and entitled to vote on any matter shall be the act of the stockholders, unless otherwise provided by the DGCL, the Amended and Restated Certificate (including the certificate of designations of
preferences as to any preferred stock), or the rules and regulations of any stock exchange applicable to us or any other applicable law. 

Dividend and Liquidation Rights  

              Each holder of common stock is entitled to receive ratably any dividends declared on the common stock by our board of directors from funds
legally available for distribution. In the event of our liquidation, dissolution or winding up, after we pay all debts and other liabilities and any liquidation preference on the preferred stock, each
holder of common stock would be entitled to share ratably in all of our remaining assets. The common stock has no subscription, redemption, conversion or preemptive rights. All shares of common stock
are fully paid and nonassessable. 

Preferred Stock  

              Under the Amended and Restated Certificate, our board of directors is authorized generally without stockholder approval to issue shares of
preferred stock from time to time,
in one or more series. Prior to the issuance of shares of each series, the board of directors is required by the DGCL and the Amended and Restated Certificate to adopt resolutions and file a
certificate of designation with the Secretary of State of the State of Delaware. The certificate of designation fixes for each series the designations, powers, preferences, rights, qualifications,
limitations and restrictions, including, but not limited to, the following:

	•
	 the number of shares constituting each series; 

	•
	 voting rights; 

	•
	 rights and terms of redemption (including sinking fund provisions); 

	•
	 dividend rights and rates; 

	•
	 conversion rights; 

	•
	 redemption prices; and 

	•
	 liquidation preferences. 

              All
shares of preferred stock will, when issued, be fully paid and nonassessable and not have any preemptive or similar rights. Our board of directors could authorize the issuance of
shares of preferred stock with terms and conditions that could have the effect of discouraging a takeover or other transaction that might involve a premium price for holders of the shares or that
holders might believe to be in their best interests. 

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Table of Contents

              We
will set forth in a prospectus supplement relating to the series of preferred stock being offered the specific terms of each series of our preferred stock. 

Certain Anti-Takeover Matters  

              Certain provisions of our organizational documents and the DGCL may have the effect of delaying, deferring or preventing a change in control.
The provisions described below may also reduce our vulnerability to an unsolicited takeover attempt. The summary of the provisions set forth below does not purport to be complete and is qualified in
its entirety by reference to our Amended and Restated Certificate, bylaws and the DGCL. 

No Written Consent of Stockholders  

              Our bylaws provide that stockholders are not entitled to act by written consent in lieu of a meeting. This provision could discourage potential
acquisition proposals and could delay or prevent a change of control. 

No Ability of Stockholders to Call Special Meetings  

              Our Amended and Restated Certificate and bylaws do not provide stockholders with the right to call a special meeting of stockholders. 

Advance Notice Requirements  

              Our bylaws establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as
directors or new business to be brought before meetings of stockholders. These procedures provide that notice of such stockholder proposals must be timely given in writing to the Secretary of Avery
Dennison Corporation prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive offices not less than 90 days nor more
than 120 days prior to the anniversary date of the annual meeting for the preceding year. The notice must contain certain information specified in our bylaws. 

Delaware General Corporation Law Section 203  

              As a corporation organized under the laws of the State of Delaware, we are subject to Section 203 of the DGCL which restricts certain
business combinations between us and an "interested stockholder" (in general, a stockholder owning 15% or more of our outstanding voting stock) or that stockholder's affiliates or associates
for a period of three years following the date on which the stockholder becomes an "interested stockholder." The restrictions do not apply if:

	•
	 prior to an interested stockholder becoming such, our board of directors approves either the business combination or the transaction in which
the stockholder becomes an interested stockholder; 

	•
	 upon consummation of the transaction in which the stockholder becomes an interested stockholder, the interested stockholder owns at least 85%
of our voting stock outstanding at the time the transaction commenced, subject to certain exceptions; or 

	•
	 on or after the date an interested stockholder becomes such, the business combination is both approved by our board of directors and authorized
at an annual or special meeting of our stockholders (and not by written consent) by the affirmative vote of at least 662/3% of the outstanding voting stock not owned by the
interested stockholder. 

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Blank Check Preferred Stock  

              Our Amended and Restated Certificate provides for 5,000,000 authorized shares of "blank check" preferred stock, the terms of which may
be determined by our board of directors without obtaining stockholder approval. Undesignated or "blank check" preferred stock may enable our board of directors to render more difficult or to
discourage an attempt to obtain control of us by means of a tender offer, proxy contest, merger or otherwise, and to thereby protect the continuity of our management. 

              On
October 23, 1997, our board of directors adopted a Rights Agreement and declared a dividend distribution of one preferred share purchase right, or a Right, on each outstanding
share of our common stock. The Rights expired on October 31, 2007. We have not yet redesignated the Series A Junior Participating preferred stock underlying the Rights. 

              Our
board of directors has no present intention to introduce additional measures that might have an anti-takeover effect; however, our board of directors expressly reserves the right to
introduce these measures in the future, including, for example, by renewing the Rights, if our board determines in the exercise of its fiduciary duties that the adoption of such measure would be in
the best interests of our company and stockholders. 

Listing Exchange; Transfer Agent and Registrar  

              Our common stock is listed on the New York Stock Exchange. The transfer agent and registrar for our common stock is Broadridge Corporate
Issuer Solutions, Inc. 

 
 

  VALIDITY OF THE SECURITIES    
    

              Sheppard, Mullin, Richter & Hampton LLP, Costa Mesa, California, will pass upon the validity of the securities offered hereby
for us. 

 
 

  EXPERTS    
    

              The financial statements and management's assessment of the effectiveness of internal control over financial reporting (which is included in
Management's Report on Internal Control over Financial Reporting) incorporated in this prospectus by reference to the Annual Report on Form 10-K for the fiscal year ended January 2, 2016
have been so incorporated in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing
and accounting. 

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