Document:

exv10w3

Exhibit
10.3

	 	 	 	 	 

	To:	 	Teleflex Incorporated
	 	 	155 South Limerick Road
	 	 	Limerick, PA 19468
	 
	 	 	 	 
	From:	 	Bank of America, N.A.
	 	 	c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated
	 	 	One Bryant Park
	 	 	New York, NY 10036
	 
	 	Attn:	 	John Servidio
	 
	 	Telephone:	 	646-855-8900
	 
	 	Facsimile:	 	704-208-2869
	 
	 	 	 	 
	Re:	 	Issuer Warrant Transaction
	 
	 	 	 	 
	Ref. No:	 	108248236
	 
	 	 	 	 
	Date:	 	August 3, 2010

Dear Sir(s):

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below (the
“Transaction”) between Bank of America, N.A. (“Dealer”) and Teleflex Incorporated (“Issuer”). This
communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified
below.

     1. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. For purposes of the Equity Definitions,
each reference herein to a Warrant shall be deemed to be a reference to a Call Option or an Option,
as context requires.

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

     This Confirmation evidences a complete and binding agreement between Dealer and Issuer as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement, as
published by ISDA, as if Dealer and Issuer had executed an agreement in such form on the date
hereof (but without any Schedule except for (i) the election of US Dollars (“USD”) as the
Termination Currency and (ii) the election that the “Cross Default” provisions of Section 5(a)(vi)
of the Agreement shall apply to Issuer; provided that, (a) the words “, or becoming capable at such
time of being declared,” shall be deleted from clause (1) of Section 5(a)(vi); (b) the following
language shall be added to the end thereof: “Notwithstanding the foregoing, a default under
subsection (2) hereof shall not constitute an Event of Default if (i) the default was caused solely
by error or omission of an administrative or operational nature; (ii) funds were available to
enable Issuer to make the payment when due; and (iii) the payment is made within two Local Business
Days of Issuer’s receipt of written notice of its failure to pay.”; and (c) “Threshold Amount”
means USD 50 million).

 

 

     All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

     The Transaction hereunder shall be the sole Transaction under the Agreement. If there exists
any ISDA Master Agreement between Dealer and Issuer or any confirmation or other agreement between
Dealer and Issuer pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and
Issuer, then notwithstanding anything to the contrary in such ISDA Master Agreement, such
confirmation or agreement or any other agreement to which Dealer and Issuer are parties, the
Transaction shall not be considered a Transaction under, or otherwise governed by, such existing or
deemed ISDA Master Agreement.

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

General Terms:

	 	 	 	 	 

	 

	 	Trade Date:
	 	August 3, 2010
	 
	 	 	 	 
	 

	 	Effective Date:
	 	August 9, 2010 or such other date as agreed between
the parties, subject to Section 8(k) below
	 
	 	 	 	 
	 

	 	Components:
	 	The Transaction will be divided into individual
Components, each with the terms set forth in this
Confirmation, and, in particular, with the Number of
Warrants and Expiration Date set forth in this
Confirmation. The payments and deliveries to be made
upon settlement of the Transaction will be determined
separately for each Component as if each Component
were a separate Transaction under the Agreement.
	 
	 	 	 	 
	 

	 	Warrant Style:
	 	European
	 
	 	 	 	 
	 

	 	Warrant Type:
	 	Call
	 
	 	 	 	 
	 

	 	Seller:
	 	Issuer
	 
	 	 	 	 
	 

	 	Buyer:
	 	Dealer
	 
	 	 	 	 
	 

	 	Shares:
	 	The common stock of Issuer, par value USD 1.00 (Ticker
Symbol: “TFX”).
	 
	 	 	 	 
	 

	 	Number of Warrants:
	 	For each Component, as provided in Annex A to this
Confirmation; provided that, the Number of Warrants
for each Component shall be automatically increased as
of the date of exercise by Dealer, as one of the
Underwriters (as defined in the Underwriting
Agreement), of their option pursuant to Section 2 of
the Underwriting Agreement between Issuer and Goldman,
Sachs & Co., Jefferies & Company, Inc., Morgan Stanley
& Co. Incorporated, Merrill, Lynch, Pierce, Fenner &
Smith Incorporated and J.P. Morgan Securities Inc., as
representatives of the Underwriters (the “Underwriting
Agreement”), by a number of Warrants (the “Additional
Warrants”) equal to the product of (i) the Number of
Warrants for such Component as reflected in Annex A
hereto and (ii) a fraction (A) whose numerator is the

2

 

	 	 	 	 	 

	 

	 	 	 	aggregate principal amount of
Convertible Securities issued
pursuant to such exercise (such
Convertible Securities, the
“Additional Convertible
Securities”) and (B) whose
denominator is the aggregate
principal amount of Convertible
Securities issued prior to such
exercise (subject to a rounding
convention determined by the
Calculation Agent).
	 
	 	 	 	 
	 

	 	Warrant Entitlement:
	 	One Share per Warrant
	 
	 	 	 	 
	 

	 	Strike Price:
	 	USD 74.648
	 
	 	 	 	 
	 

	 	Premium:
	 	USD [ ] (Premium per Warrant: USD [ ]); provided that, if the
Number of Warrants is increased
pursuant to the proviso to the
definition of “Number of
Warrants” above, an additional
Premium equal to the product of
(i) the sum of the number of
Additional Warrants for all
Components and (ii) the Premium
per Warrant shall be paid on the
Additional Premium Payment Date.
	 
	 	 	 	 
	 

	 	Premium Payment Date:
	 	The Effective Date
	 
	 	 	 	 
	 

	 	Additional Premium Payment Date:
	 	The closing date for the purchase
and sale of the Additional
Convertible Securities.
	 
	 	 	 	 
	 

	 	Exchange:
	 	New York Stock Exchange
	 
	 	 	 	 
	 

	 	Related Exchange:
	 	All Exchanges
	 
	 	 	 	 
	Procedures for Exercise:	 	 
	 
	 	 	 	 
	  In respect of any Component:	 	 
	 
	 	 	 	 
	 

	 	Expiration Time:
	 	Valuation Time
	 
	 	 	 	 
	 

	 	Expiration Date:
	 	As provided in Annex A to this
Confirmation (or, if such date is
not a Scheduled Trading Day, the
next following Scheduled Trading
Day that is not already an
Expiration Date for another
Component);
	 
	 	 	 	 
	 

	 	 	 	provided that, if that date is a
Disrupted Day, the Expiration
Date for such Component shall be
the first succeeding Scheduled
Trading Day that is not a
Disrupted Day and is not or is
not deemed to be an Expiration
Date in respect of any other
Component of the Transaction
hereunder; and
	 
	 	 	 	 
	 

	 	 	 	provided further that, if the
Expiration Date has not occurred
pursuant to the preceding proviso
as of the Final Disruption Date,
the Calculation Agent shall have
the right to elect, in its sole
discretion, that the Final
Disruption Date shall be the
Expiration Date (irrespective of
whether such date is an
Expiration Date in respect of any
other Component for the
Transaction); in which case, the
Calculation Agent, in its good
faith and commercially reasonable
discretion, may determine the
VWAP Price for such Expiration
Date using its good faith
estimate of the value of the
Shares on such Expiration Date
based on the volume, historical
trading patterns and price of the
Shares and such other factors as
it deems

3

 

	 	 	 	 	 

	 

	 	 	 	appropriate. Notwithstanding the
foregoing and anything to the
contrary in the Equity Definitions,
if a Market Disruption Event occurs
on any Expiration Date, the
Calculation Agent may determine that
such Expiration Date is a Disrupted
Day only in part, in which case (i)
the Calculation Agent shall make
adjustments to the Number of
Warrants for the relevant Component
for which such day shall be the
Expiration Date and shall designate
the Scheduled Trading Day determined
in the manner described in the
immediately preceding sentence as
the Expiration Date for the
remaining Warrants for such
Component and (ii) the VWAP Price
for such Disrupted Day may be
adjusted by the Calculation Agent as
appropriate on the basis of the
nature and duration of the relevant
Market Disruption Event. Any
Scheduled Trading Day on which, as
of the date hereof, the Exchange is
scheduled to close prior to its
normal close of trading shall be
deemed not to be a Scheduled Trading
Day; if a closure of the Exchange
prior to its normal close of trading
on any Scheduled Trading Day is
scheduled following the date hereof
but prior to such Scheduled Trading
Day, then such Scheduled Trading Day
shall be deemed to be a Disrupted
Day in full. Section 6.6 of the
Equity Definitions shall not apply
to any Valuation Date occurring on
an Expiration Date. “Final
Disruption Date” means December 1,
2018.
	 
	 	 	 	 
	 

	 	Market Disruption Event:
	 	Section 6.3(a) of the Equity
Definitions is hereby amended by (A)
deleting the words “during the one
hour period that ends at the
relevant Valuation Time, Latest
Exercise Time, Knock-in Valuation
Time or Knock-out Valuation Time, as
the case may be,” in clause (ii)
thereof and (B) by replacing the
words “or (iii) an Early Closure.”
therein with “(iii) an Early
Closure, or (iv) a Regulatory
Disruption.”.
	 
	 	 	 	 
	 

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

	 	Regulatory Disruption:
	 	Any event determined by Dealer, in
its good faith and reasonable
discretion, based on the advice of
counsel, to be an event that makes
it reasonably necessary or advisable
with regard to any legal, regulatory
or self-regulatory requirements or
related policies and procedures, for
Dealer to refrain from or decrease
any market activity in connection
with the Transaction. Dealer will
notify Issuer promptly of any
determination that a Regulatory
Disruption has occurred.
	 
	 	 	 	 
	 

	 	Automatic Exercise:
	 	Applicable; and means that the
Number of Warrants for the
corresponding Expiration Date will
be deemed to be automatically
exercised at the Expiration Time on
such Expiration Date unless Dealer
notifies Seller

4

 

	 	 	 	 	 

	 

	 	 	 	(by telephone or in writing) prior to
the Expiration Time on such Expiration
Date that it does not wish Automatic
Exercise to occur, in which case
Automatic Exercise will not apply to
such Expiration Date.
	 
	 	 	 	 
	 

	 	Issuer’s Telephone Number	 	 
	 

	 	and Telex and/or Facsimile Number	 	 
	 

	 	and Contact Details for purpose of	 	 
	 

	 	Giving Notice:
	 	As provided in Section 6(a) below.
	 
	 	 	 	 
	Settlement Terms:	 	 
	 
	 	 	 	 
	  In respect of any Component:	 	 
	 
	 	 	 	 
	 

	 	Settlement Method Election:
	 	Applicable; provided that:
	 
	 	 	 	 
	 

	 	 	 	(i) Issuer may elect Cash Settlement
only if, on or prior to the Settlement
Method Election Date, Issuer delivers
written notice to Dealer stating that
Issuer has elected that Cash Settlement
apply to every Component of the
Transaction and Dealer delivers written
consent to such election by Issuer, by
the second (2nd) Scheduled
Trading Day immediately following the
day on which such notice is delivered
by Issuer; provided that, such consent
will not be unreasonably withheld;
	 
	 	 	 	 
	 

	 	 	 	(ii) on such notice delivery date,
Issuer shall represent and warrant to
Dealer in writing that, as of such
notice delivery date:

	 	 	 	 	 

	 

	 	 	 	(A) none of Issuer or any person that
exercises influence over Issuer’s
decision to elect Cash Settlement is
aware of any material nonpublic
information regarding Issuer or the
Shares;
	 
	 	 	 	 
	 

	 	 	 	(B) Issuer is electing Cash Settlement
in good faith and not as part of a plan
or scheme to evade compliance with
federal securities laws;
	 
	 	 	 	 
	 

	 	 	 	(C) the assets of Issuer at their fair
valuation exceed the liabilities of
Issuer, including contingent
liabilities;
	 
	 	 	 	 
	 

	 	 	 	(D) the capital of Issuer is adequate
to conduct the business of Issuer and
the capital of Issuer will continue to
be adequate at the time of, or as a
result of, Cash Settlement election by
Issuer;
	 
	 	 	 	 
	 

	 	 	 	(E) Issuer has the ability to pay its
debts and obligations as such debts
mature and does not intend to incur
debt beyond its ability to pay as such
debts mature;
	 
	 	 	 	 
	 

	 	 	 	(F) Issuer has the power to make such
election and to execute and deliver any
documentation relating to such election
that it is required by this
Confirmation to deliver and to perform
its obligations under this Confirmation
and has

5

 

	 	 	 	 	 

	 

	 	 	 	taken all necessary action to authorize
such election, execution, delivery and
performance;
	 
	 	 	 	 
	 

	 	 	 	(G) such election and performance of its
obligations under this Confirmation do
not violate or conflict with any law
applicable to it, any provision of its
constitutional documents, any order or
judgment of any court or other agency of
government applicable to it or any of its
assets or any contractual restriction
binding on or affecting it or any of its
assets; and
	 
	 	 	 	 
	 

	 	 	 	(H) Issuer does not have, and will not
attempt to exercise, any influence over
how, when, whether or at what price
Dealer effects any transaction that
Dealer makes with respect to the Shares
during the period beginning at the time
that Issuer delivers notice of its Cash
Settlement election and ending at the
close of business on the final day of the
Settlement Period, including, without
limitation, the prices paid or received
by Dealer per Share pursuant to such
transactions, or whether such
transactions are made on any securities
exchange or privately;

	 	 	 	 	 

	 

	 	 	 	(iii) such Settlement Method Election
shall apply to every Component; and
	 
	 	 	 	 
	 

	 	 	 	(iv) no event of default has occurred and
is continuing under any indebtedness of
the Issuer or its subsidiaries in an
aggregate principal amount of USD 10.0
million or more.
	 
	 	 	 	 
	 

	 	 	 	Notwithstanding the foregoing, Dealer may
refuse to give such consent with respect
to Issuer’s Cash Settlement election if
Dealer notifies Issuer that, in the
reasonable judgment of Dealer based upon
the advice of counsel, the election of
Cash Settlement or any purchases of
Shares that Dealer (or its affiliates)
might make in connection therewith, as a
result of events occurring after the
Trade Date, would raise material risks
under applicable securities laws.
	 
	 	 	 	 
	 

	 	Electing Party:
	 	Issuer
	 
	 	 	 	 
	 

	 	Settlement Method Election Date:
	 	The tenth (10th) Scheduled
Trading Day immediately preceding the
scheduled Expiration Date for the
Component with the earliest scheduled
Expiration Date.
	 
	 	 	 	 
	 

	 	Default Settlement Method:
	 	Net Share Settlement
	 
	 	 	 	 
	 

	 	Settlement Currency:
	 	USD
	 
	 	 	 	 
	 

	 	Net Share Settlement:
	 	If Net Share Settlement is applicable,
then on each Settlement Date, Issuer
shall deliver to Dealer a number of
Shares equal to the Number of Shares to
be Delivered for such Settlement Date to
the account specified by Dealer and cash
in lieu of any fractional Share valued at
the VWAP Price on the Valuation Date
corresponding to such Settlement Date.
If, in

6

 

	 	 	 	 	 

	 

	 	 	 	the reasonable opinion of Issuer or
Dealer, based on advice of counsel,
for any reason, the Shares
deliverable upon Net Share
Settlement would not be immediately
freely transferable by Dealer under
Rule 144 under the Securities Act of
1933, as amended (the “Securities
Act”), then Dealer may elect to
either (x) accept delivery of such
Shares notwithstanding any
restriction on transfer or (y) have
the provisions set forth in Section
8(b) below apply.
	 
	 	 	 	 
	 

	 	Number of Shares to be Delivered:
	 	In respect of any Settlement Date,
subject to the last sentence of
Section 9.5 of the Equity
Definitions, the product of (i) the
number of Warrants exercised or
deemed exercised on the related
Exercise Date, (ii) the Warrant
Entitlement and (iii) (A) the excess
of the VWAP Price on the Valuation
Date occurring in respect of such
Exercise Date over the Strike Price
(or, if there is no such excess,
zero) divided by (B) such VWAP
Price.
	 
	 	 	 	 
	 

	 	Settlement Price:
	 	VWAP Price
	 
	 	 	 	 
	 

	 	VWAP Price:
	 	For any Exchange Business Day, the
New York Volume Weighted Average
Price per Share for the regular
trading session (including any
extensions thereof) of the Exchange
on such Exchange Business Day
(without regard to pre-open or after
hours trading outside of such
regular trading session), as
published by Bloomberg at 4:15 P.M.,
New York City time (or 15 minutes
following the end of any extension
of the regular trading session), on
such Exchange Business Day, on
Bloomberg page “TFX.N <Equity>
AQR” (or any successor thereto) (or
if such published volume weighted
average price is unavailable or is
manifestly incorrect, the market
value of one Share on such Exchange
Business Day, as determined by the
Calculation Agent using a volume
weighted method).
	 
	 	 	 	 
	 

	 	Other Applicable Provisions:
	 	If Net Share Settlement is
applicable, the provisions of
Sections 9.1(c), 9.4, 9.8, 9.9,
9.10, 9.11 and 9.12 of the Equity
Definitions will be applicable as if
“Physical Settlement” applied to the
Transaction (and for the avoidance
of doubt, Section 9.1(a) of the
Equity Definitions shall not be
applicable); provided that, the
Representation and Agreement
contained in Section 9.11 of the
Equity Definitions shall be modified
by excluding any representations
therein relating to restrictions,
obligations, limitations or
requirements under applicable
securities laws that exist solely as
a result of the fact that Issuer is
the issuer of the Shares.

7

 

	 	 	 	 	 

	Adjustments:	 	 
	 
	 	 	 	 
	  In respect of any Component:	 	 
	 
	 	 	 	 
	 

	 	Method of Adjustment:
	 	Calculation Agent Adjustment. For the avoidance of doubt,
Calculation Agent Adjustment (including, without
limitation, in respect of Extraordinary Dividends) shall
continue to apply until the obligations of the parties
(including any obligations of Issuer pursuant to Section
8(e) below) under the Transaction have been satisfied in
full.
	 
	 	 	 	 
	 

	 	Extraordinary Dividend:
	 	Any Dividend with an ex-dividend date occurring on or
after the Trade Date and on or prior to the Expiration
Date (or, if any Deficit Shares are owed pursuant to
Section 8(e) below, such later date on which Issuer’s
obligations under this Transaction have been satisfied in
full) the amount of which differs from the Ordinary
Dividend Amount for such dividend or distribution. If no
such ex-dividend date occurs within a regular quarterly
dividend period, an ex-dividend date with a Dividend of
zero (0) shall be deemed to have occurred on the last
Scheduled Trading Day of such regular quarterly dividend
period.
	 
	 	 	 	 
	 

	 	Dividend:
	 	Any dividend or distribution on the Shares (other than
any dividend or distribution of the type described in
Sections 11.2(e)(i), 11.2(e)(ii)(A) or 11.2(e)(ii)(B) of
the Equity Definitions).
	 
	 	 	 	 
	 

	 	Ordinary Dividend Amount:
	 	For the first Dividend on the Shares for which the
ex-dividend date occurs during any regular quarterly
dividend period of Issuer, USD 0.34, and for any other
Dividend on the Shares for which the ex-dividend date
occurs during the same regular quarterly dividend period,
USD 0.00.
	 
	 	 	 	 
	Extraordinary Events:	 	 
	 
	 	 	 	 
	 

	 	New Shares:
	 	In the definition of New Shares in Section 12.1(i) of the
Equity Definitions, the text in clause (i) thereof shall
be deleted in its entirety and replaced with “publicly
quoted, traded or listed on any of the New York Stock
Exchange, The NASDAQ Global Market or The NASDAQ Global
Select Market (or their respective successors)”.
	 
	 	 	 	 
	 

	 	Consequences of Merger Events:	 	 
	 
	 	 	 	 
	 

	 	     (a) Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

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

	 	     (c) Share-for-Combined:
	 	Cancellation and Payment (Calculation Agent
Determination); provided that, the Calculation Agent may
elect Component Adjustment for all or part of the
Transaction.
	 
	 	 	 	 
	 

	 	Tender Offer:
	 	Applicable; provided however that, if an event occurs
that constitutes both a Tender Offer under Section
12.1(d) of the Equity Definitions and Additional

8

 

	 	 	 	 	 

	 

	 	 	 	Termination Event under this Confirmation,
Dealer may elect, in its commercially
reasonable judgment, whether the provisions
of Section 12.3 of the Equity Definitions
will apply.
	 
	 	 	 	 
	 

	 	Consequences of Tender Offers:	 	 
	 
	 	 	 	 
	 

	 	     (a) Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	     (b)Share-for-Other:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	     (c) Share-for-Combined:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	Modified Calculation	 	 
	 

	 	Agent Adjustment:
	 	If, in respect of any Merger Event to which
Modified Calculation Agent Adjustment
applies, the adjustments to be made in
accordance with Section 12.2(e)(i) of the
Equity Definitions would result in Issuer
being different from the issuer of the
Shares, then with respect to such Merger
Event, as a condition precedent to the
adjustments contemplated in Section
12.2(e)(i) of the Equity Definitions,
Issuer and the issuer of the Shares shall,
prior to the Merger Date, have entered into
such documentation containing
representations, warranties and agreements
relating to securities law and other issues
as requested by Dealer that Dealer has
determined based on the advice of counsel,
in its reasonable discretion, to be
reasonably necessary or advisable to allow
Dealer to continue as a party to the
Transaction, as adjusted under Section
12.2(e)(i) of the Equity Definitions, and
to preserve its hedging or hedge unwind
activities in connection with the
Transaction in a manner compliant with
applicable legal, regulatory or
self-regulatory requirements, or with
related policies and procedures applicable
to Dealer, and if such conditions are not
met or if the Calculation Agent determines
that no adjustment that it could make under
Section 12.2(e)(i) of the Equity
Definitions will produce a commercially
reasonable result, then the consequences
set forth in Section 12.2(e)(ii) of the
Equity Definitions shall apply.
	 
	 	 	 	 
	 

	 	 	 	For the avoidance of doubt, if Modified
Calculation Agent Adjustment applies as a
consequence of a Merger Event or Tender
Offer, and so long as Section 12.2(e)(ii)
or 12.3(d)(ii) does not apply, the
Calculation Agent shall make adjustments
pursuant to Section 12.2(e) or Section
12.3(d), as the case may be, of the Equity
Definitions, to preserve the fair value of
the relevant Transaction to the parties by
making adjustments to account for the net
economic gain obtained or loss suffered by
Dealer (taking into account any gain or
loss on Dealer’s Hedge Position in respect
of the relevant Transaction and in each
case applying consistent methodology
(which, for the avoidance of doubt, will
not be based on mid-market quotes but will
be based on Dealer’s side of the

9

 

	 	 	 	 	 

	 

	 	 	 	market)) as a result of the occurrence of such Merger Event or Tender Offer.
	 
	 	 	 	 
	 

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

	 	Additional Disruption Events:	 	 
	 
	 	 	 	 
	 

	 	     (a) Change in Law:
	 	Applicable; provided that, Section 12.9(a)(ii) shall be amended by
inserting, at the end thereof, the words “, after using commercially
reasonable efforts to avoid such increased cost”.
	 
	 	 	 	 
	 

	 	     (b) Failure to Deliver:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (c) Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (d) Hedging Disruption:
	 	Applicable; provided that, (i) Section 12.9(a)(v) of the Equity Definitions
is hereby modified by inserting the following two phrases at the end of
such Section:
	 
	 	 	 	 
	 

	 	 	 	“For the avoidance of doubt, the term “equity price risk” shall be deemed
to include, but shall not be limited to, stock price and volatility risk.
And, for the further avoidance of doubt, any such transactions or assets
referred to in phrases (A) or (B) above, must be available on commercially
reasonable pricing terms, as anticipated on the Trade Date; provided that,
the scheduled exercise or scheduled expiration of call options on the
Shares (with a Trade Date of even date herewith) sold by Dealer to Issuer
in accordance with the terms of such call options shall not provide the
sole basis for the occurrence of a Hedging Disruption.”
	 
	 	 	 	 
	 

	 	 	 	(ii) Section 12.9(b)(iii) of the Equity Definitions is hereby modified by
inserting in the third line thereof, after the words “to terminate the
Transaction”, the following words:
	 
	 	 	 	 
	 

	 	 	 	“or a portion of the Transaction affected by such Hedging Disruption”.
	 
	 	 	 	 
	 

	 	     (e) Increased Cost of
Hedging:
	 	Applicable; provided that, Section 12.9(a)(vi) shall be amended by
inserting, in the first line thereof after the word “incur”, the words “,
after using

10

 

	 	 	 	 	 

	 

	 	 	 	commercially reasonable efforts to avoid any increased
costs contemplated hereunder”.
	 
	 	 	 	 
	 

	 	     (f) Loss of Stock Borrow:
	 	Applicable
	 
	 	 	 	 
	 

	 	          Maximum Stock Loan Rate:
	 	[ ]% per annum
	 
	 	 	 	 
	 

	 	     (g) Increased Cost of Stock Borrow:
	 	Applicable
	 
	 	 	 	 
	 

	 	          Initial Stock Loan Rate:
	 	[ ]% per annum
	 
	 	 	 	 
	 

	 	Hedging Party:
	 	Dealer for all applicable Additional Disruption Events.
	 
	 	 	 	 
	 

	 	Determining Party:
	 	Dealer; provided that, upon receipt of written request
from Issuer, Determining Party shall promptly (but in
no event later than within seven (7) Scheduled Trading
Days from the receipt of such request) provide Issuer
with a written explanation describing in reasonable
detail any determination made by it (including any
quotations, market data or information from internal
sources used in making such calculations, but without
disclosing Dealer’s proprietary models).
	 
	 	 	 	 
	 

	 	Non-Reliance:
	 	Applicable
	 
	 	 	 	 
	 

	 	Agreements and Acknowledgments
Regarding Hedging Activities:
	 	Applicable
	 
	 	 	 	 
	 

	 	Additional Acknowledgments:
	 	Applicable
	 
	 	 	 	 
	 

	 	3. Calculation Agent:
	 	Dealer; provided that, upon receipt of written request
from Issuer, Calculation Agent shall promptly (but in
no event later than within seven (7) Scheduled Trading
Days from the receipt of such request) provide Issuer
with a written explanation describing in reasonable
detail any calculation, adjustment or determination
made by it (including any quotations, market data or
information from internal sources used in making such
calculations, but without disclosing Dealer’s
proprietary models).

	 	 	 	 	 	 	 

	 	 	4. Account Details:
	 
	 	 	 	 	 	 
	 	 	     Dealer Payment Instructions:
	 
	 	 	 	 	 	 
	 

	 	 	 	[ ]	 	 
	 

	 	 	 	ABA: No.:
	 	[ ]
	 

	 	 	 	Acct.:
	 	[ ]
	 

	 	 	 	Acct. No.
	 	[ ]
	 

	 	 	 	SWIFT:
	 	[ ]
	 
	 	 	 	 	 	 
	 	 	Account for delivery of Shares to Dealer: To be provided by Dealer
	 
	 	 	 	 	 	 
	 	 	Issuer Payment Instructions: To be provided by Issuer.
	 
	 	 	 	 	 	 
	 	 	5. Offices:	 	 
	 
	 	 	 	 	 	 
	 	 	The Office of Dealer for the Transaction is:
	 
	 	 	 	 	 	 
	 

	 	 	 	New York	 	 
	 
	 	 	 	 	 	 
	 	 	The Office of Issuer for the Transaction is:

11

 

	 	 	 	 	 	 	 	 	 

	 	 	 	 	155 South Limerick Road, Limerick, Pennsylvania 19468	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	6. Notices: For purposes of this Confirmation:
	 
	 	 	 	 	 	 	 	 
	 	 	(a)	 	Address for notices or communications to Issuer:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	To:
	 	Teleflex Incorporated	 	 
	 

	 	 	 	Attention:
	 	Richard A. Meier	 	 
	 

	 	 	 	 	 	155 South Limerick Road	 	 
	 

	 	 	 	 	 	Limerick, Pennsylvania 19468	 	 
	 

	 	 	 	Telephone No.:
	 	(610) 948-5100	 	 
	 

	 	 	 	Facsimile No.:
	 	(610) 948-5101	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	(b)	 	Address for notices or communications to Dealer:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Bank of America, N.A.	 	 
	 	 	 	 	c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated	 	 
	 	 	 	 	Bank of America Tower at One Bryant Park	 	 
	 	 	 	 	New York, New York 10036	 	 
	 

	 	 	 	Attention:
	 	John Servidio	 	 
	 

	 	 	 	Telephone No.:
	 	(646) 855-7127	 	 
	 

	 	 	 	Facsimile No.:
	 	(704) 208-2869	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	7. Representations, Warranties and Agreements:

     (a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Issuer represents and warrants to and for the benefit of, and agrees with, Dealer
as follows:

     (i) On the Trade Date and as of the date of any election by Issuer of the Share
Termination Alternative under (and as defined in) Section 8(a) below, (A) Issuer is not
aware of any material nonpublic information regarding Issuer or the Shares and (B) all
reports and other documents filed by Issuer with the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), when
considered as a whole (with the more recent such reports and documents deemed to amend
inconsistent statements contained in any earlier such reports and documents), do not
contain any untrue statement of a material fact or any omission of a material fact required
to be stated therein or necessary to make the statements therein, in the light of the
circumstances in which they were made, not misleading.

     (ii) Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer
acknowledges that neither Dealer nor any of its affiliates is making any representations or
warranties or taking any position or expressing any view with respect to the treatment of
the Transaction under any accounting standards including ASC Topic 260, Earnings Per Share,
ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from
Equity and ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity (or any
successor issue statements).

     (iii) Prior to the Trade Date, Issuer shall deliver to Dealer a resolution of Issuer’s
board of directors authorizing the Transaction and such other certificate or certificates
as Dealer shall reasonably request.

     (iv) Issuer is not entering into the Transaction to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or to
raise or depress the price of the Shares (or any security convertible into or exchangeable
for Shares) for the purposes of inducing the purchase or sale of the Shares by others.

     (v) Issuer is not, and after giving effect to the transactions contemplated hereby
will not be, required to register as an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.

12

 

     (vi) On the Trade Date, the Premium Payment Date and any Additional Premium Payment
Date (A) the assets of Issuer at their fair valuation exceed the liabilities of Issuer,
including contingent liabilities, (B) the capital of Issuer is adequate to conduct the
business of Issuer and (C) Issuer has the ability to pay its debts and obligations as such
debts mature and does not intend to, or does not believe that it will, incur debt beyond
its ability to pay as such debts mature.

     (vii) Issuer shall not take any action to decrease the number of Available Shares
below the Capped Number (each as defined below).

     (viii) The representations and warranties of Issuer set forth in Section 3 of the
Agreement and Section 1 of the Underwriting Agreement are true and correct as of the Trade
Date and the Effective Date and are hereby deemed to be repeated to Dealer as if set forth
herein.

     (ix) (A) During the period starting on the first Expiration Date and ending on the
last Expiration Date, but excluding any Open Trading Period, (the “Settlement Period”), the
Shares or securities that are convertible into, or exchangeable or exercisable for Shares
will not be subject to a “restricted period,” as defined in Regulation M under the Exchange
Act (“Regulation M”) and (B) Issuer shall not engage in any “distribution,” as such term is
defined in Regulation M until the second Exchange Business Day immediately following the
Settlement Period.

     “Open Trading Period” shall mean (i) a period commencing on March 5, 2018 and ending
on March 23, 2018 and (ii) a period commencing on April 27, 2018 and ending on May 17,
2018, each subject to extension for any Market Disruption Event as determined by Dealer.

     (x) During the Settlement Period and on any other Exercise Date, neither Issuer nor
any “affiliate” or “affiliated purchaser” (each as defined in Rule 10b-18 of the Exchange
Act (“Rule 10b-18”)) shall directly or indirectly (including, without limitation, by means
of any cash-settled or other derivative instrument) purchase, offer to purchase, place any
bid or limit order that would effect a purchase of, or commence any tender offer relating
to, any Shares (or an equivalent interest, including a unit of beneficial interest in a
trust or limited partnership or a depository share) or any security convertible into or
exchangeable or exercisable for Shares, except through Dealer.

     (xii) Issuer agrees that it (A) will not during the Settlement Period make, or permit
to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of
any Merger Transaction or potential Merger Transaction unless such public announcement is
made prior to the opening or after the close of the regular trading session on the Exchange
for the Shares; (B) shall promptly (but in any event prior to the next opening of the
regular trading session on the Exchange) notify Dealer following any such announcement that
such announcement has been made; and (C) shall promptly (but in any event prior to the next
opening of the regular trading session on the Exchange) provide Dealer with written notice
specifying (i) Issuer’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18)
during the three full calendar months immediately preceding the announcement date that were
not effected through Dealer or its affiliates and (ii) the number of Shares purchased
pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full
calendar months preceding the announcement date. Such written notice shall be deemed to be
a certification by Issuer to Dealer that such information is true and correct. In
addition, Issuer shall promptly notify Dealer of the earlier to occur of the completion of
such transaction and the completion of the vote by target shareholders. “Merger
Transaction” means any merger, acquisition or similar transaction involving a
recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

     (xiii) Any Shares issued or delivered in connection with the Transaction shall be duly
authorized and validly issued, fully paid and non-assessable, and the issuance or delivery
thereof shall not be subject to any preemptive or similar rights and shall, upon issuance,
be accepted for listing or quotation on the Exchange. The Shares of Issuer initially
issuable upon exercise of the Warrants have been reserved for issuance by all required
corporate action of the Issuer.

     (b) Each of Dealer and Issuer agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended, and is
entering into the

13

 

Transaction as principal (and not as agent or in any other capacity, fiduciary or otherwise)
and not for the benefit of any third party.

     (c) Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to
Dealer is intended to be exempt from registration under the Securities Act, by virtue of Section
4(2) thereof. Accordingly, Dealer represents and warrants to Issuer that (i) it has the financial
ability to bear the economic risk of its investment in the Transaction and is able to bear a total
loss of its investment and its investments in and liabilities in respect of the Transaction, which
it understands are not readily marketable, are not disproportionate to its net worth, and it is
able to bear any loss in connection with the Transaction, including the loss of its entire
investment in the Transaction, (ii) it is an “accredited investor” as that term is defined in
Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for
its own account and without a view to the distribution or resale thereof, (iv) the assignment,
transfer or other disposition of the Transaction has not been and will not be registered under the
Securities Act and is restricted under this Confirmation, the Securities Act and state securities
laws, and (v) its financial condition is such that it has no need for liquidity with respect to its
investment in the Transaction and no need to dispose of any portion thereof to satisfy any existing
or contemplated undertaking or indebtedness and is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and understands and
accepts, the terms, conditions and risks of the Transaction.

     (d) Dealer represents to Issuer that Dealer is a “financial institution,” “swap participant”
and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of Title
11 of the United States Code (the “Bankruptcy Code”). The parties hereto agree and acknowledge
that they intend for (A) this Confirmation to be (i) a “securities contract,” as such term is
defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery
hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer
obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment”
within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term
is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other
transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer”
within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer is entitled to the
protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(b)(27), 362(o),
546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

     (e) As a condition to the effectiveness of the Transaction, Issuer shall deliver to Dealer (A)
an incumbency certificate, dated as of the Trade Date, of Issuer in customary form and (B) an
opinion of counsel, dated as of the Effective Date (containing customary exceptions and
qualifications) and reasonably acceptable to Dealer in form and substance, with respect to the
matters set forth in Section 3(a) of the Agreement and Section 7(a)(v) and (xiii).

     8. Other Provisions:

     (a) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If Issuer shall owe Dealer any amount pursuant to Section 12.2, 12.3, 12.6, 12.7 or 12.9
of the Equity Definitions or pursuant to Section 6(d)(ii) of the Agreement (a “Payment
Obligation”), Issuer shall have the right, in its sole discretion, to satisfy any such Payment
Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic
notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M.,
New York City time, on the Merger Date, Tender Offer Date, Announcement Date, Early Termination
Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable
(“Notice of Share Termination”); provided that, if Issuer does not elect to satisfy its Payment
Obligation by the Share Termination Alternative, Dealer shall have the right, in its sole
discretion, to elect to require Issuer to satisfy its Payment Obligation by the Share Termination
Alternative, notwithstanding Issuer’s failure to elect or election to the contrary; and provided
further that, Issuer shall not have the right to so elect (but, for the avoidance of doubt, Dealer
shall have the right to so elect) in the event of (i) an Insolvency, a Nationalization, a Tender
Offer or a Merger Event, in each case, in which the consideration or proceeds to be paid to holders
of Shares consists solely of cash or (ii) an Event of Default in which Issuer is the Defaulting
Party or a Termination Event in which Issuer is the Affected Party, which Event of Default or
Termination Event resulted from an event or events within Issuer’s control. Upon such Notice of
Share Termination, the following provisions shall apply on

14

 

the Scheduled Trading Day immediately following the Merger Date, the Tender Offer Date,
Announcement Date, Early Termination Date or date of cancellation or termination in respect of an
Extraordinary Event, as applicable:

	 	 	 

	Share Termination Alternative:

	 	Applicable and means that
Issuer shall deliver to Dealer
the Share Termination Delivery
Property on the date on which
the Payment Obligation would
otherwise be due pursuant to
Section 12.2, 12.3, 12.6, 12.7
or 12.9 of the Equity
Definitions or Section 6(d)(ii)
of the Agreement, as applicable
(the “Share Termination Payment
Date”), in satisfaction of the
Payment Obligation.
	 
	 	 
	Share Termination Delivery Property:

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

	 	The value of property contained
in one Share Termination
Delivery Unit on the date such
Share Termination Delivery
Units are to be delivered as
Share Termination Delivery
Property, as determined by the
Calculation Agent in its
discretion by commercially
reasonable means and notified
by the Calculation Agent to
Issuer at the time of
notification of the Payment
Obligation.
	 
	 	 
	Share Termination Delivery Unit:

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

	 	Applicable
	 
	 	 
	Other Applicable Provisions:

	 	If Share Termination
Alternative is applicable, the
provisions of Sections 9.1(c),
9.8, 9.9, 9.10, 9.11 and 9.12
of the Equity Definitions will
be applicable as if “Physical
Settlement” applied to the
Transaction, except that all
references to “Shares” shall be
read as references to “Share
Termination Delivery Units”;
provided that, the
Representation and Agreement
contained in Section 9.11 of
the Equity Definitions shall be
modified by excluding any
representations therein
relating to restrictions,
obligations, limitations or
requirements under applicable
securities laws with respect to
securities comprising Share
Termination Delivery Units
solely as a result of the fact
that Issuer is the issuer of
any Share Termination Delivery
Units (or any security forming
a part thereof). If, in the
reasonable opinion of Issuer or
Dealer, based on advice of
counsel, for any reason, any
securities comprising the Share
Termination Delivery Units
deliverable pursuant to this
Section 8(a) would not be
immediately freely transferable
by Dealer under Rule 144 under
the Securities Act, then Dealer
may elect to either (x) permit
delivery of such securities
notwithstanding any

15

 

	 	 	 

	 

	 	restriction on transfer or (y) have the provisions set forth in
Section 8(b) below apply.

     (b) Registration/Private Placement Procedures. (i) With respect to the Transaction, the
following provisions shall apply to the extent provided for above opposite the caption “Net Share
Settlement” in Section 2 or in paragraph (a) of this Section 8. If so applicable, then, at the
election of Issuer (and for the avoidance of doubt Issuer must make an election described in
subclause (A) or (B) below) by notice to Dealer within two Exchange Business Days after the
relevant delivery obligation arises, but in any event at least one Exchange Business Day prior to
the date on which such delivery obligation is due, either (A) all Shares or Share Termination
Delivery Units, as the case may be, delivered by Issuer to Dealer shall be, at the time of such
delivery, covered by an effective registration statement of Issuer for immediate resale by Dealer
(such registration statement and the corresponding prospectus (the “Prospectus”) (including,
without limitation, any sections describing the plan of distribution) in form and content
commercially reasonably satisfactory to Dealer) or (B) Issuer shall deliver additional Shares or
Share Termination Delivery Units, as the case may be, so that the value of such Shares or Share
Termination Delivery Units, as determined by the Calculation Agent to reflect an appropriate
liquidity discount, equals the value of the number of Shares or Share Termination Delivery Units
that would otherwise be deliverable if such Shares or Share Termination Delivery Units were freely
tradeable (without prospectus delivery) upon receipt by Dealer (such value, the “Freely Tradeable
Value”); provided that, if requested by Dealer, Issuer shall make the election described in this
clause (B) with respect to Shares delivered on all Settlement Dates no later than one Exchange
Business Day prior to the first Exercise Date, and the applicable procedures described below shall
apply to all Shares delivered on the Settlement Dates on an aggregate basis. (For the avoidance of
doubt, as used in this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

     (ii) If Issuer makes the election described in clause (b)(i)(A) above:

     (A) Dealer (or an affiliate of Dealer designated by Dealer) shall be afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Issuer that
is customary in scope for underwritten offerings of equity securities and that yields
results that are commercially reasonably satisfactory to Dealer or such affiliate, as the
case may be; and

     (B) Dealer (or an affiliate of Dealer designated by Dealer) and Issuer shall enter
into an agreement (a “Registration Agreement”) on customary and commercially reasonable
terms in connection with the public resale of such Shares or Share Termination Delivery
Units, as the case may be, by Dealer or such affiliate substantially similar to
underwriting agreements customary for underwritten offerings of equity securities of
similar size, in form and substance commercially reasonably satisfactory to Dealer or such
affiliate and Issuer, which Registration Agreement shall include, without limitation,
provisions substantially similar to those contained in such underwriting agreements
relating to the indemnification of, and contribution in connection with the liability of,
Dealer and its affiliates and Issuer, shall provide for the payment by Issuer of all
expenses in connection with such resale, including all registration costs and all
reasonable fees and expenses of counsel for Dealer, and shall provide for the delivery of
customary accountants’ “comfort letters” to Dealer or such affiliate with respect to the
financial statements and certain financial information contained in or incorporated by
reference into the Prospectus.

     (iii) If Issuer makes the election described in clause (b)(i)(B) above:

     (A) Dealer (or an affiliate of Dealer designated by Dealer) and any potential
institutional purchaser of any such Shares or Share Termination Delivery Units, as the case
may be, from Dealer or such affiliate identified by Dealer shall be afforded a reasonable
opportunity to conduct a due diligence investigation in compliance with applicable law with
respect to Issuer customary in scope for private placements of equity securities
(including, without limitation, the right to have made available to them for inspection all
financial and other records, pertinent corporate documents and other information reasonably
requested by them), subject to execution by such recipients of customary confidentiality
agreements reasonably acceptable to Issuer;

     (B) Dealer (or an affiliate of Dealer designated by Dealer) and Issuer shall enter
into an agreement (a “Private Placement Agreement”) on commercially reasonable terms in

16

 

connection with the private placement of such Shares or Share Termination Delivery
Units, as the case may be, by Issuer to Dealer or such affiliate and the private resale of
such shares by Dealer or such affiliate, substantially similar to private placement
purchase agreements customary for private placements of equity securities of similar size,
in form and substance commercially reasonably satisfactory to Dealer and Issuer, which
Private Placement Agreement shall include, without limitation, provisions substantially
similar to those contained in such private placement purchase agreements relating to the
indemnification of, and contribution in connection with the liability of, Dealer and its
affiliates and Issuer, shall provide for the payment by Issuer of all reasonable expenses
in connection with such resale, including all fees and expenses of counsel for Dealer,
shall contain representations, warranties and agreements of Issuer reasonably necessary or
advisable to establish and maintain the availability of an exemption from the registration
requirements of the Securities Act for such resales, and shall use reasonable efforts to
provide for the delivery of customary accountants’ “comfort letters” to Dealer or such
affiliate with respect to the financial statements and certain financial information
contained in or incorporated by reference into the offering memorandum prepared for the
resale of such Shares;

     (C) Issuer agrees that any Shares or Share Termination Delivery Units so delivered to
Dealer, (i) may be transferred by and among Dealer and its affiliates, and Issuer shall
effect such transfer without any further action by Dealer and (ii) after the minimum
“holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed
with respect to such Shares or any securities issued by Issuer comprising such Share
Termination Delivery Units, Issuer shall promptly remove, or cause the transfer agent for
such Shares or securities to remove, any legends referring to any such restrictions or
requirements from such Shares or securities upon delivery by Dealer (or such affiliate of
Dealer) to Issuer or such transfer agent of any seller’s and broker’s representation
letters customarily delivered by Dealer in connection with resales of restricted securities
pursuant to Rule 144 under the Securities Act, without any further requirement for the
delivery of any certificate, consent, agreement, opinion of counsel, notice or any other
document, any transfer tax stamps or payment of any other amount or any other action by
Dealer (or such affiliate of Dealer); and

     (D) Issuer shall not take, or cause to be taken, any action that would make
unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the
sale by Issuer to Dealer (or any affiliate designated by Dealer) of the Shares or Share
Termination Delivery Units, as the case may be, or the exemption pursuant to Section 4(1)
or Section 4(3) of the Securities Act for resales of the Shares or Share Termination
Delivery Units, as the case may be, by Dealer (or any such affiliate of Dealer).

     (c) Make-whole Shares. If Issuer makes the election described in clause (i)(B) of paragraph
(b) of this Section 8, then Dealer or its affiliates may sell (which sale shall be made in a
commercially reasonable manner) such Shares or Share Termination Delivery Units, as the case may
be, during a period (the “Resale Period”) commencing on the Exchange Business Day following
delivery of such Shares or Share Termination Delivery Units, as the case may be, and ending on the
Exchange Business Day on which Dealer or its affiliates completes the sale of all such Shares or
Share Termination Delivery Units, as the case may be, or a sufficient number of Shares or Share
Termination Delivery Units, as the case may be, so that the realized net proceeds of such sales
exceed the Freely Tradeable Value. If any of such delivered Shares or Share Termination Delivery
Units remain after such realized net proceeds exceed the Freely Tradeable Value, Dealer shall
return such remaining Shares or Share Termination Delivery Units to Issuer. If the Freely
Tradeable Value exceeds the realized net proceeds from such resale, Issuer shall transfer to Dealer
by the open of the regular trading session on the Exchange on the Exchange Trading Day immediately
following the last day of the Resale Period the amount of such excess (the “Additional Amount”) in
cash or in a number of additional Shares or Share Termination Delivery Units, as the case may be,
(“Make-whole Shares”) in an amount that, based on the VWAP Price on the last day of the Resale
Period, has a dollar value equal to the Additional Amount. The Resale Period shall continue to
enable the sale of the Make-whole Shares in the manner contemplated by this Section 8(c). This
provision shall be applied successively until the Additional Amount is equal to zero, subject to
Section 8(e).

     (d) Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this
Confirmation, in no event shall Dealer be entitled to receive, or shall be deemed to receive, any
Shares if,

17

 

immediately upon giving effect to such receipt of such Shares, (i) the “beneficial ownership”
(within the meaning of Section 13 of the Exchange Act and the rules promulgated thereunder) of
Shares by Dealer, any of its affiliates subject to aggregation with Dealer for purposes of the
“beneficial ownership” test under Section 13 of the Exchange Act and all persons who may form a
“group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer with respect to
“beneficial ownership” of any Shares (collectively, “Dealer Group”) would be equal to or greater
than 9.0% or more of the outstanding Shares on the date of determination or (ii) Dealer, Dealer
Group or any person whose ownership position would be aggregated with that of Dealer or Dealer
Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under Section 203 of the
Delaware General Corporation Law or other federal, state or local regulations or regulatory orders
applicable to ownership of Shares (“Applicable Laws”), would own, beneficially own, constructively
own, control, hold the power to vote or otherwise meet a relevant definition of ownership in excess
of a number of Shares equal to (x) the number of Shares that would give rise to reporting or
registration obligations or other requirements (including obtaining prior approval by a state or
federal regulator) of a Dealer Person under Applicable Laws and with respect to which such
requirements have not been met or the relevant approval has not been received or that would subject
a Dealer Person to restrictions (including restrictions relating to business combinations and other
designated transactions) under Applicable Laws minus (y) 1.0% of the number of Shares outstanding
on the date of determination (either such condition described in clause (i) or (ii), an “Excess
Ownership Position”). If any delivery owed to Dealer hereunder is not made, in whole or in part,
as a result of this provision, Issuer’s obligation to make such delivery shall not be extinguished
and Issuer shall make such delivery as promptly as practicable after, but in no event later than
one Exchange Business Day after, Dealer gives notice to Issuer that such delivery would not result
in the existence of an Excess Ownership Position.

     (e) Limitations on Settlement by Issuer. Notwithstanding anything herein or in the Agreement
to the contrary, in no event shall Issuer be required to deliver Shares in connection with the
Transaction in excess of 3,990,711 Shares (as such number may be adjusted from time to time in
accordance with the provisions hereof) (the “Capped Number”). Issuer covenants to maintain a
number of authorized but unissued Shares that are not reserved for future issuance in connection
with transactions in the Shares (other than the Transaction) on the day the Capped Number is
determined and each day during the Transaction (such Shares, the “Available Shares”) equal to or
greater than the Capped Number. In the event Issuer shall not have delivered the full number of
Shares otherwise deliverable as a result of this Section 8(e) (the resulting deficit, the “Deficit
Shares”), Issuer shall be continually obligated to deliver Shares, from time to time until the full
number of Deficit Shares have been delivered pursuant to this paragraph, when, and to the extent,
that (A) Shares are repurchased, acquired or otherwise received by Issuer or any of its
subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other
consideration), (B) authorized and unissued Shares reserved for issuance in respect of other
transactions prior to such date which prior to the relevant date become no longer so reserved and
(C) Issuer additionally authorizes any unissued Shares that are not reserved for other transactions
(such events as set forth in clauses (A), (B) and (C) above, collectively, the “Share Issuance
Events”). To the extent and for so long as Deficit Shares exist, Issuer shall promptly notify
Dealer of the occurrence of any of the Share Issuance Events (including the number of Shares
subject to clause (A), (B) or (C) and the number of Shares to be delivered) and, as promptly as
reasonably practicable, deliver such Shares thereafter. Issuer shall not, until Issuer’s
obligations under the Transaction have been satisfied in full, use any Shares that become available
for potential delivery to Dealer as a result of any Share Issuance Event for the settlement or
satisfaction of any transaction or obligation other than the Transaction or reserve any such Shares
for future issuance for any purpose other than to satisfy Issuer’s obligations to Dealer under the
Transaction.

     (f) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Issuer’s bankruptcy. For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during Issuer’s bankruptcy to
any claim arising as a result of a breach by Issuer of any of its obligations under this
Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that the
obligations of Issuer under this Confirmation are not secured by any collateral that would
otherwise secure the obligations of Issuer herein under or pursuant to any other agreement.

18

 

     (g) Adjustments. Dealer acknowledges and agrees that any adjustment by the Calculation Agent
to the terms of the Transaction after the Trade Date that affects the Number of Shares to be
Delivered or the Option Cash Settlement Amount, as applicable, would be an adjustment that is based
on factors that would serve as an input to or theoretical modeling assumptions for the fair value
of a fixed-for-fixed option on equity shares. These factors may include Issuer’s stock price and
additional variables, including the strike price of the instrument, term of the instrument,
expected dividends or other dilutive activities, stock borrow cost, interest rates, stock price
volatility, Issuer’s credit spread or the ability to maintain a standard hedge position in the
underlying shares.

     (h) Amendments to Equity Definitions. The following amendments shall be made to the Equity
Definitions:

     (i) The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause
(A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent Adjustment”
is specified as the Method of Adjustment in the related Confirmation of a Share Option
Transaction, then following the announcement or occurrence of any Potential Adjustment
Event, the Calculation Agent will determine whether such Potential Adjustment Event has a
material effect on the theoretical value of the relevant Shares or options on the Shares
and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and,
the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by
deleting the words “diluting or concentrative” and the words “(provided that, no
adjustments will be made to account solely for changes in volatility, expected dividends,
stock loan rate or liquidity relative to the relevant Shares)” and replacing such latter
phrase with the words “(and, for the avoidance of doubt, adjustments may be made to account
solely for changes in volatility, expected dividends, stock loan rate or liquidity relative
to the relevant Shares resulting from such Potential Adjustment Event)” For the avoidance
of doubt, the Calculation Agent shall make adjustments pursuant to Section 11.2(c) of the
Definitions (as amended hereby) to preserve the fair value of the relevant Transaction to
the parties by making adjustments to account for the net economic gain obtained or loss
suffered by Dealer (taking into account any gain or loss on Dealer’s Hedge Position in
respect of the relevant Transaction and, in each case, applying consistent methodology
(which, for the avoidance of doubt, will not be based on mid-market quotes but will be
based on Dealer’s side of the market)) as a result of the occurrence of such Potential
Adjustment Event;

     (ii) Sections 11.2(a) and 11.2(e)(vii) of the Equity Definitions are hereby amended by
deleting the words “diluting or concentrative” and replacing them with “material” and
adding the phrase “or options on the Shares” at the end of the sentence;

     (iii) Section 12.1(l) of the Equity Definitions shall be amended (x) by deleting the
parenthetical phrase in both the third line thereof and the fifth line thereof and (y) by
replacing the word “that” in both the third line thereof and the fifth line thereof with
the words “whether or not such announcement”, (ii) Sections 12.2(b), 12.2(e), 12.3(a) and
12.3(d) of the Equity Definitions shall each be amended by replacing each occurrence of the
words “Merger Date” and “Tender Offer Date”, as the case may be, with the words
“Announcement Date”, and (iii) (A) Section 12.2(e) shall be amended by inserting, in the
first line thereof, after the newly inserted words “Announcement Date”, the words “(or, if
the Calculation Agent reasonably determines that such adjustment is appropriate, on the
relevant Merger Date or the date on which the Calculation Agent reasonably determines that
the Merger Event, with respect to which such Announcement Date has occurred, will not be
completed)” and (B) Section 12.3(d) shall be amended by inserting, in the first line
thereof, after the newly inserted words “Announcement Date”, the words “(or, if the
Calculation Agent reasonably determines that such adjustment is appropriate, on the
relevant Tender Offer Date or the date on which the Calculation Agent reasonably determines
that an event, with respect to which such Announcement Date has occurred, will not be
completed)”.

     (iv) Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) deleting
(1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and
(3) the phrase “in each case” in subsection (B); (B) replacing “will lend” with “lends” in
subsection (B); and (C) deleting the phrase “neither the Non-Hedging Party nor the Lending
Party lends Shares in the amount of the Hedging Shares or” in the penultimate sentence;

19

 

     (v) Section 12.9(b)(v) of the Equity Definitions is hereby amended by (A) adding the
word “or” immediately before subsection “(B)” and deleting the comma at the end of
subsection (A); and (B)(1) deleting subsection (C) in its entirety, (2) deleting the word
“or” immediately preceding subsection (C), (3) replacing in the penultimate sentence the
words “either party” with “the Hedging Party” and (4) deleting clause (X) in the final
sentence; provided, however that, such amendment to Section 12.9(b)(iv) shall be deemed
applicable to this Transaction solely until August 1, 2017 and shall deemed null and void
with respect to any date occurring after such date; and

     (vi) Section 12.7(b) of the Equity Definitions is hereby amended by deleting the words
“(and in any event within five Exchange Business Days) by the parties after” appearing
after the words “agreed promptly” and replacing with the words “by the parties on or prior
to”.

     (i) Transfer and Assignment. Dealer may transfer or assign its rights and obligations
hereunder and under the Agreement, in whole or in part, at any time without the consent of Issuer.
Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing
Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Issuer,
Dealer may designate any of its affiliates to purchase, sell, receive or deliver such shares or
other securities and otherwise to perform Dealer obligations in respect of the Transaction and any
such designee may assume such obligations. Dealer shall be discharged of its obligations to Issuer
to the extent of any such performance.

     (j) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Issuer and each of its employees, representatives, or other agents may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Issuer relating to such tax treatment and tax structure.

     (k) Additional Termination Events. The occurrence of any of the following shall constitute an
Additional Termination Event with respect to which the Transaction shall be the sole Affected
Transaction and Issuer shall be the sole Affected Party and Dealer shall be the party entitled to
designate an Early Termination Date pursuant to Section 6(b) of the Agreement and to determine the
amount payable pursuant to Section 6(e) of the Agreement; provided that, with respect to any
Additional Termination Event, Dealer may choose to treat part of the Transaction as the sole
Affected Transaction, and, upon the termination of the Affected Transaction, a Transaction with
terms identical to those set forth herein except with a Number of Warrants equal to the unaffected
number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full
force and effect:

     (i) Dealer reasonably determines based on the advice of counsel that it is advisable
to terminate a portion of the Transaction so that Dealer’s related hedging activities will
comply with applicable securities laws, rules or regulations or related policies and
procedures of Dealer (whether or not such requirements, policies or procedures are imposed
by law or have been voluntarily adopted by Dealer), or Dealer, despite using commercially
reasonable efforts, is unable or reasonably determines based on the advice of counsel that
it is impractical or illegal to hedge its obligations pursuant to this Transaction in the
public market without registration under the Securities Act or as a result of any legal,
regulatory or self-regulatory requirements;

     (ii) at any time at which any Excess Ownership Position occurs, Dealer, in its
discretion, is unable to effect a transfer or assignment to a third party of the
Transaction or any other transaction between the parties after using its commercially
reasonable efforts on pricing and terms and within a time period reasonably acceptable to
Dealer such that an Excess Ownership Position no longer exists; provided that, Dealer shall
treat only that portion of the Transaction as the Affected Transaction as necessary so that
such Excess Ownership Position no longer exists;

     (iii) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act,
other than the Issuer, its subsidiaries and its and their respective employee benefit
plans, files a Schedule TO or any schedule, form or report under the Exchange Act
disclosing that such person or group has become, or Issuer acquires knowledge based upon a
public announcement by such a person or group, that such a person or group has become, the
direct or indirect “beneficial owner,”

20

 

as defined in Rule 13d-3 under the Exchange Act, of the Issuer’s common equity
representing more than 50% of the voting power of the Issuer’s common equity;

     (iv) consummation of (x) any recapitalization, reclassification or change of Shares
(other than changes resulting from a subdivision or combination) as a result of which the
Shares would be converted into, or exchanged for, stock, other securities, other property
or assets or (y) any share exchange, consolidation or merger of Issuer pursuant to which
the Shares will be converted into cash, securities or other property or assets, or any
sale, conveyance, transfer, lease or other disposition, in one transaction or a series of
transactions, of all or substantially all of the consolidated assets of the Issuer and its
subsidiaries, taken as a whole, to any person other than the Issuer or one of its
subsidiaries; provided, however, that a transaction (A) as a result of which the holders of
all classes of the Issuer’s common equity immediately prior to such transaction will own,
directly or indirectly, more than 50% of all classes of common equity of the continuing or
surviving corporation or limited liability company (that is treated as a corporation for
U.S. federal income tax purposes) or transferee or a direct or indirect parent thereof
immediately after such transaction or (B) which is effected solely to change Issuer’s
jurisdiction of incorporation into a jurisdiction within the United States of America and
results in reclassification, conversion or exchange of outstanding Shares solely into
shares of common stock of the surviving entity or a direct or indirect parent thereof,
shall not be an Additional Termination Event; provided further, that, for the avoidance of
doubt, the sale, conveyance, transfer, lease or other disposition, in one transaction or a
series of transactions, of all or substantially all of the assets of Issuer’s Commercial
and/or Aerospace segments (as defined in Issuer’s condensed consolidated financial
statements for the six months ended June 27, 2010) shall not constitute an Additional
Termination Event; or

     (v) the Issuer’s stockholders approve any plan or proposal for the liquidation or
dissolution of the Issuer.

     Notwithstanding the foregoing, a transaction or transactions described in clause (iii)
or (iv) will not constitute an Additional Termination Event if at least 90% of the
consideration (excluding cash payments for fractional shares and cash payments made
pursuant to dissenters appraisal rights and cash dividends) received or to be received by
Issuer’s shareholders in connection with such transaction or transactions consists of
shares of common stock or equivalent common equity that are listed or quoted on any of the
New York Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or
any of their respective successors) or will be so listed or quoted when issued or exchanged
in connection with such transaction or transactions.

     (l) Effectiveness. If, on or prior to the Effective Date, Dealer reasonably determines based
in the advice of counsel that it is reasonably necessary or advisable to cancel the Transaction
because of concerns that Dealer’s related hedging activities could be viewed as not complying with
applicable securities laws, rules or regulations, the Transaction shall be cancelled and shall not
become effective, and neither party shall have any obligation to the other party in respect of the
Transaction.

     (m) Extension of Settlement. Dealer may divide any Component into additional Components and
designate the Expiration Date and the Number of Warrants for each such Component if Dealer
determines, in its reasonable discretion, that such further division is reasonably necessary or
advisable to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing
liquidity conditions in the cash market or stock loan market.

     (n) No Netting and Set-off. The provisions of Section 2(c) of the Agreement shall not apply
to the Transaction. Each party waives any and all rights it may have to set-off delivery or
payment obligations it owes to the other party under the Transaction against any delivery or
payment obligations owed to it by the other party, whether arising under the Agreement, under any
other agreement between parties hereto, by operation of law or otherwise.

     (o) Delivery of Cash. For the avoidance of doubt, nothing in this Confirmation shall be
interpreted as requiring the Issuer to deliver cash in respect of the settlement of the
Transaction, except in circumstances where the required cash settlement thereof is permitted for
classification of the contract as

21

 

equity by ASC 815-40 (formerly EITF 00-19) as in effect on the
relevant Trade Date (including, without limitation, where the Issuer so elects to deliver cash or fails timely to elect to deliver
Shares or Share Termination Delivery Property in respect of such settlement).

     (p) Governing Law. THE AGREEMENT, THIS CONFIRMATION AND ALL MATTERS ARISING IN CONNECTION
WITH THE AGREEMENT AND THIS CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW
DOCTRINE, OTHER THAN TITLE 14 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     (q) Amendment. This Confirmation and the Agreement may not be modified, amended or
supplemented, except in a written instrument signed by Issuer and Dealer.

     (r) Counterparts. This Confirmation may be executed in several counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

     9. Waiver of Jury Trial. Each party waives, to the fullest extent permitted by
applicable law, any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to the Transaction. Each party (i) certifies that no representative, agent or
attorney of the other party has represented, expressly or otherwise, that such other party would
not, in the event of such a suit, action or proceeding, seek to enforce the foregoing waiver and
(ii) acknowledges that it and the other party have been induced to enter into the Transaction by,
among other things, the mutual waivers and certifications provided herein.

     10. Submission to Jurisdiction. Section 13(b) of the Agreement is deleted in its
entirety and replaced by the following:

“Each party hereby irrevocably and unconditionally submits for itself and its property in
any suit, legal action or proceeding relating to the Agreement and/or the Transaction, or
for recognition and enforcement of any judgment in respect thereof, (each, “Proceedings”)
to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in New
York County, the courts of the United States of America for the Southern District of New
York and appellate courts from any thereof. Nothing in this Confirmation or the Agreement
precludes either party from bringing Proceedings in any other jurisdiction if (A) the
courts of the State of New York or the United States of America for the Southern District
of New York lack jurisdiction over the parties or the subject matter of the Proceedings or
decline to accept the Proceedings on the grounds of lacking such jurisdiction; (B) the
Proceedings are commenced by a party for the purpose of enforcing against the other party’s
property, assets or estate any decision or judgment rendered by any court in which
Proceedings may be brought as provided hereunder; (C) the Proceedings are commenced to
appeal any such court’s decision or judgment to any higher court with competent appellate
jurisdiction over that court’s decisions or judgments if that higher court is located
outside the State of New York or Borough of Manhattan, such as a federal court of appeals
or the U.S. Supreme Court; or (D) any suit, action or proceeding has been commenced in
another jurisdiction by or against the other party or against its property, assets or
estate and, in order to exercise or protect its rights, interests or remedies under the
Agreement or this Confirmation, the party (1) joins, files a claim, or takes any other
action, in any such suit, action or proceeding, or (2) otherwise commences any Proceeding
in that other jurisdiction as the result of that other suit, action or proceeding having
commenced in that other jurisdiction.”

22

 

     Issuer hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so
that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the
foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement
between Dealer and Issuer with respect to the Transaction, by manually signing this Confirmation or
this page hereof as evidence of agreement to such terms and providing the other information
requested herein and immediately returning an executed copy to John Servidio, Facsimile No.
704-208-2869.

	 	 	 	 	 
	 	

Yours faithfully,

BANK OF AMERICA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 

	Agreed and Accepted By:	 	 
	 
	 	 	 	 
	TELEFLEX INCORPORATED	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

Annex A

For each Component of the Transaction, the Number of Warrants and Expiration Date is set forth
below.

	 	 	 	 	 

	Component Number
	 	Number of Warrants
	 	Expiration Dateexv10w4

Exhibit
10.4

	 	 	 

	To:

	 	Teleflex Incorporated
	 

	 	155 South Limerick Road
	 

	 	Limerick, PA 19468
	 
	 	 
	From:

	 	JPMorgan Chase Bank, National Association
	 

	 	P.O. Box 161
	 

	 	60 Victoria Embankment
	 

	 	London EC4Y 0JP
	 

	 	England
	 
	 	 
	Re:

	 	Issuer Warrant Transaction
	 
	 	 
	Date:

	 	August 3, 2010

Dear Sir(s):

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below (the
“Transaction”) between JPMorgan Chase Bank, National Association, London Branch (“Dealer”) and
Teleflex Incorporated (“Issuer”). This communication constitutes a “Confirmation” as referred to
in the ISDA Master Agreement specified below.

     1. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. For purposes of the Equity Definitions,
each reference herein to a Warrant shall be deemed to be a reference to a Call Option or an Option,
as context requires.

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

     This Confirmation evidences a complete and binding agreement between Dealer and Issuer as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement, as
published by ISDA, as if Dealer and Issuer had executed an agreement in such form on the date
hereof (but without any Schedule except for (i) the election of US Dollars (“USD”) as the
Termination Currency and (ii) the election that the “Cross Default” provisions of Section 5(a)(vi)
of the Agreement shall apply to Issuer; provided that, (a) the words “, or becoming capable at such
time of being declared,” shall be deleted from clause (1) of Section 5(a)(vi); (b) the following
language shall be added to the end thereof: “Notwithstanding the foregoing, a default under
subsection (2) hereof shall not constitute an Event of Default if (i) the default was caused solely
by error or omission of an administrative or operational nature; (ii) funds were available to
enable Issuer to make the payment when due; and (iii) the payment is made within two Local Business
Days of Issuer’s receipt of written notice of its failure to pay.”; and (c) “Threshold Amount”
means USD 50 million).

JPMorgan Chase Bank, National Association

Organised under the laws of the United States as a National Banking Association

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

 

 

     All provisions contained in, or incorporated by reference to, the Agreement will govern
this Confirmation except as expressly modified herein. In the event of any inconsistency between
this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

     The Transaction hereunder shall be the sole Transaction under the Agreement. If there exists
any ISDA Master Agreement between Dealer and Issuer or any confirmation or other agreement between
Dealer and Issuer pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and
Issuer, then notwithstanding anything to the contrary in such ISDA Master Agreement, such
confirmation or agreement or any other agreement to which Dealer and Issuer are parties, the
Transaction shall not be considered a Transaction under, or otherwise governed by, such existing or
deemed ISDA Master Agreement.

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

	 	 	 

	General Terms:
	 	 
	 
	 	 
	Trade Date:

	 	August 3, 2010
	 
	 	 
	Effective Date:

	 	August 9, 2010 or such other date as
agreed between the parties, subject
to Section 8(k) below
	 
	 	 
	Components:

	 	The Transaction will be divided into
individual Components, each with the
terms set forth in this
Confirmation, and, in particular,
with the Number of Warrants and
Expiration Date set forth in this
Confirmation. The payments and
deliveries to be made upon
settlement of the Transaction will
be determined separately for each
Component as if each Component were
a separate Transaction under the
Agreement.
	 
	 	 
	Warrant Style:

	 	European
	 
	 	 
	Warrant Type:

	 	Call
	 
	 	 
	Seller:

	 	Issuer
	 
	 	 
	Buyer:

	 	Dealer
	 
	 	 
	Shares:

	 	The common stock of Issuer, par
value USD 1.00 (Ticker Symbol:
	 

	 	“TFX”).
	 
	 	 
	Number of Warrants:

	 	For each Component, as provided in
Annex A to this Confirmation;
provided that, the Number of
Warrants for each Component shall be
automatically increased as of the
date of exercise by Dealer, as one
of the Underwriters (as defined in
the Underwriting Agreement), of
their option pursuant to Section 2
of the Underwriting Agreement
between Issuer and Goldman, Sachs &
Co., Jefferies & Company, Inc.,
Morgan Stanley & Co. Incorporated,
Merrill, Lynch, Pierce, Fenner &
Smith Incorporated and J.P. Morgan
Securities Inc., as representatives
of the Underwriters (the
“Underwriting Agreement”), by a
number of Warrants (the “Additional
Warrants”) equal to the product of
(i) the Number of Warrants for such
Component as reflected in Annex A
hereto and (ii) a fraction (A) whose
numerator is the

2

 

	 	 	 

	 

	 	
aggregate principal
amount of Convertible Securities
issued pursuant to such exercise
(such Convertible Securities, the
“Additional Convertible Securities”)
and (B) whose denominator is the
aggregate principal amount of
Convertible Securities issued prior
to such exercise (subject to a
rounding convention determined by
the Calculation Agent).
	 
	 	 
	Warrant Entitlement:

	 	One Share per Warrant
	 
	 	 
	Strike Price:

	 	USD 74.648
	 
	 	 
	Premium:

	 	USD [ ] (Premium per Warrant: USD [
]); provided that, if the Number of
Warrants is increased pursuant to
the proviso to the definition of
“Number of Warrants” above, an
additional Premium equal to the
product of (i) the sum of the number
of Additional Warrants for all
Components and (ii) the Premium per
Warrant shall be paid on the
Additional Premium Payment Date.
	 
	 	 
	Premium Payment Date:

	 	The Effective Date
	 
	 	 
	Additional Premium Payment Date:

	 	The closing date for the purchase
and sale of the Additional
Convertible Securities.
	 
	 	 
	Exchange:

	 	New York Stock Exchange
	 
	 	 
	Related Exchange:

	 	All Exchanges
	 
	 	 
	Procedures for Exercise:
	 	 
	 
	 	 
	In respect of any Component:
	 	 
	 
	 	 
	Expiration Time:

	 	Valuation Time
	 
	 	 
	Expiration Date:

	 	As provided in Annex A to this
Confirmation (or, if such date is
not a Scheduled Trading Day, the
next following Scheduled Trading Day
that is not already an Expiration
Date for another Component);
	 
	 	 
	 

	 	provided that, if that date is a
Disrupted Day, the Expiration Date
for such Component shall be the
first succeeding Scheduled Trading
Day that is not a Disrupted Day and
is not or is not deemed to be an
Expiration Date in respect of any
other Component of the Transaction
hereunder; and
	 
	 	 
	 

	 	provided further that, if the
Expiration Date has not occurred
pursuant to the preceding proviso as
of the Final Disruption Date, the
Calculation Agent shall have the
right to elect, in its sole
discretion, that the Final
Disruption Date shall be the
Expiration Date (irrespective of
whether such date is an Expiration
Date in respect of any other
Component for the Transaction); in
which case, the Calculation Agent,
in its good faith and commercially
reasonable discretion, may determine
the VWAP Price for such Expiration
Date using its good faith estimate
of the value of the Shares on such
Expiration Date based on the volume,
historical trading patterns and
price of the Shares and such other
factors as it deems 

3

 

	 	 	 

	 

	 	appropriate.
Notwithstanding the foregoing and
anything to the contrary in the
Equity Definitions, if a Market
Disruption Event occurs on any
Expiration Date, the Calculation
Agent may determine that such
Expiration Date is a Disrupted Day
only in part, in which case (i) the
Calculation Agent shall make
adjustments to the Number of
Warrants for the relevant Component
for which such day shall be the
Expiration Date and shall designate
the Scheduled Trading Day determined
in the manner described in the
immediately preceding sentence as
the Expiration Date for the
remaining Warrants for such
Component and (ii) the VWAP Price
for such Disrupted Day may be
adjusted by the Calculation Agent as
appropriate on the basis of the
nature and duration of the relevant
Market Disruption Event. Any
Scheduled Trading Day on which, as
of the date hereof, the Exchange is
scheduled to close prior to its
normal close of trading shall be
deemed not to be a Scheduled Trading
Day; if a closure of the Exchange
prior to its normal close of trading
on any Scheduled Trading Day is
scheduled following the date hereof
but prior to such Scheduled Trading
Day, then such Scheduled Trading Day
shall be deemed to be a Disrupted
Day in full. Section 6.6 of the
Equity Definitions shall not apply
to any Valuation Date occurring on
an Expiration Date. “Final
Disruption Date” means December 1,
2018.
	 
	 	 
	Market Disruption Event:

	 	Section 6.3(a) of the Equity
Definitions is hereby amended by
(A) deleting the words “during the
one hour period that ends at the
relevant Valuation Time, Latest
Exercise Time, Knock-in Valuation
Time or Knock-out Valuation Time, as
the case may be,” in clause (ii)
thereof and (B) by replacing the
words “or (iii) an Early Closure.”
therein with “(iii) an Early
Closure, or (iv) a Regulatory
Disruption.”.
	 
	 	 
	 

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

	 	Any event determined by Dealer, in
its good faith and reasonable
discretion, based on the advice of
counsel, to be an event that makes
it reasonably necessary or advisable
with regard to any legal, regulatory
or self-regulatory requirements or
related policies and procedures, for
Dealer to refrain from or decrease
any market activity in connection
with the Transaction. Dealer will
notify Issuer promptly of any
determination that a Regulatory
Disruption has occurred.
	 
	 	 
	Automatic Exercise:

	 	Applicable; and means that the
Number of Warrants for the
corresponding Expiration Date will
be deemed to be automatically
exercised at the Expiration Time on
such Expiration Date unless Dealer
notifies Seller 

4

 

	 	 	 

	 

	 	(by telephone or in
writing) prior to the Expiration
Time on such Expiration Date that it
does not wish Automatic Exercise to
occur, in which case Automatic
Exercise will not apply to such
Expiration Date.
	 
	 	 
	Issuer’s Telephone Number
and Telex and/or Facsimile Number
and Contact Details for purpose of
Giving Notice:

	 	As provided in Section 6(a) below.
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	In respect of any Component:
	 	 
	 
	 	 
	Settlement Method Election:

	 	Applicable; provided that:
	 
	 	 
	 

	 	(i) Issuer may elect Cash Settlement
only if, on or prior to the
Settlement Method Election Date,
Issuer delivers written notice to
Dealer stating that Issuer has
elected that Cash Settlement apply
to every Component of the
Transaction and Dealer delivers
written consent to such election by
Issuer, by the second
(2nd) Scheduled Trading
Day immediately following the day on
which such notice is delivered by
Issuer; provided that, such consent
will not be unreasonably withheld;
	 
	 	 
	 

	 	(ii) on such notice delivery date,
Issuer shall represent and warrant
to Dealer in writing that, as of
such notice delivery date:
	 
	 	 
	 

	 	(A) none of Issuer or any person
that exercises influence over
Issuer’s decision to elect Cash
Settlement is aware of any material
nonpublic information regarding
Issuer or the Shares;

	 
	 	 
	 

	 	(B) Issuer is electing Cash
Settlement in good faith and not as
part of a plan or scheme to evade
compliance with federal securities
laws;

	 
	 	 
	 

	 	(C) the assets of Issuer at their
fair valuation exceed the
liabilities of Issuer, including
contingent liabilities;

	 
	 	 
	 

	 	(D) the capital of Issuer is
adequate to conduct the business of
Issuer and the capital of Issuer
will continue to be adequate at the
time of, or as a result of, Cash
Settlement election by Issuer;

	 
	 	 
	 

	 	(E) Issuer has the ability to pay
its debts and obligations as such
debts mature and does not intend to
incur debt beyond its ability to pay
as such debts mature;

	 
	 	 
	 

	 	(F) Issuer has the power to make
such election and to execute and
deliver any documentation relating
to such election that it is required
by this Confirmation to deliver and
to perform its obligations under
this Confirmation and has taken all
necessary action to authorize such
election, execution, delivery and
performance;

5

 

	 	 	 

	 

	 	(G) such election and performance of
its obligations under this
Confirmation do not violate or
conflict with any law applicable to
it, any provision of its
constitutional documents, any order
or judgment of any court or other
agency of government applicable to
it or any of its assets or any
contractual restriction binding on
or affecting it or any of its
assets; and

	 
	 	 
	 

	 	(H) Issuer does not have, and will
not attempt to exercise, any
influence over how, when, whether or
at what price Dealer effects any
transaction that Dealer makes with
respect to the Shares during the
period beginning at the time that
Issuer delivers notice of its Cash
Settlement election and ending at
the close of business on the final
day of the Settlement Period,
including, without limitation, the
prices paid or received by Dealer
per Share pursuant to such
transactions, or whether such
transactions are made on any
securities exchange or privately;

	 
	 	 
	 

	 	(iii) such Settlement Method
Election shall apply to every
Component; and
	 
	 	 
	 

	 	(iv) no event of default has
occurred and is continuing under any
indebtedness of the Issuer or its
subsidiaries in an aggregate
principal amount of USD 10.0 million
or more.
	 
	 	 
	 

	 	Notwithstanding the foregoing,
Dealer may refuse to give such
consent with respect to Issuer’s
Cash Settlement election if Dealer
notifies Issuer that, in the
reasonable judgment of Dealer based
upon the advice of counsel, the
election of Cash Settlement or any
purchases of Shares that Dealer (or
its affiliates) might make in
connection therewith, as a result of
events occurring after the Trade
Date, would raise material risks
under applicable securities laws.
	 
	 	 
	Electing Party:

	 	Issuer
	 
	 	 
	Settlement Method Election Date:

	 	The tenth (10th)
Scheduled Trading Day immediately
preceding the scheduled Expiration
Date for the Component with the
earliest scheduled Expiration Date.
	 
	 	 
	Default Settlement Method:

	 	Net Share Settlement
	 
	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Net Share Settlement:

	 	If Net Share Settlement is
applicable, then on each Settlement
Date, Issuer shall deliver to Dealer
a number of Shares equal to the
Number of Shares to be Delivered for
such Settlement Date to the account
specified by Dealer and cash in lieu
of any fractional Share valued at
the VWAP Price on the Valuation Date
corresponding to such Settlement
Date. If, in 

6

 

	 	 	 

	 

	 	the reasonable opinion
of Issuer or Dealer, based on advice
of counsel, for any reason, the
Shares deliverable upon Net Share
Settlement would not be immediately
freely transferable by Dealer under
Rule 144 under the Securities Act of
1933, as amended (the “Securities
Act”), then Dealer may elect to
either (x) accept delivery of such
Shares notwithstanding any
restriction on transfer or (y) have
the provisions set forth in Section
8(b) below apply.
	 
	 	 
	Number of Shares to be Delivered:

	 	In respect of any Settlement Date,
subject to the last sentence of
Section 9.5 of the Equity
Definitions, the product of (i) the
number of Warrants exercised or
deemed exercised on the related
Exercise Date, (ii) the Warrant
Entitlement and (iii) (A) the excess
of the VWAP Price on the Valuation
Date occurring in respect of such
Exercise Date over the Strike Price
(or, if there is no such excess,
zero) divided by (B) such VWAP
Price.
	 
	 	 
	Settlement Price:

	 	VWAP Price
	 
	 	 
	VWAP Price:

	 	For any Exchange Business Day, the
New York Volume Weighted Average
Price per Share for the regular
trading session (including any
extensions thereof) of the Exchange
on such Exchange Business Day
(without regard to pre-open or after
hours trading outside of such
regular trading session), as
published by Bloomberg at 4:15 P.M.,
New York City time (or 15 minutes
following the end of any extension
of the regular trading session), on
such Exchange Business Day, on
Bloomberg page “TFX.N <Equity>
AQR” (or any successor thereto) (or
if such published volume weighted
average price is unavailable or is
manifestly incorrect, the market
value of one Share on such Exchange
Business Day, as determined by the
Calculation Agent using a volume
weighted method).
	 
	 	 
	Other Applicable Provisions:

	 	If Net Share Settlement is
applicable, the provisions of
Sections 9.1(c), 9.4, 9.8, 9.9,
9.10, 9.11 and 9.12 of the Equity
Definitions will be applicable as if
“Physical Settlement” applied to the
Transaction (and for the avoidance
of doubt, Section 9.1(a) of the
Equity Definitions shall not be
applicable); provided that, the
Representation and Agreement
contained in Section 9.11 of the
Equity Definitions shall be modified
by excluding any representations
therein relating to restrictions,
obligations, limitations or
requirements under applicable
securities laws that exist solely as
a result of the fact that Issuer is
the issuer of the Shares.

7

 

	 	 	 

	Adjustments:
	 	 
	 
	 	 
	In respect of any Component:
	 	 
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment. For
the avoidance of doubt, Calculation
Agent Adjustment (including, without
limitation, in respect of
Extraordinary Dividends) shall
continue to apply until the
obligations of the parties
(including any obligations of Issuer
pursuant to Section 8(e) below)
under the Transaction have been
satisfied in full.
	 
	 	 
	Extraordinary Dividend:

	 	Any Dividend with an ex-dividend
date occurring on or after the Trade
Date and on or prior to the
Expiration Date (or, if any Deficit
Shares are owed pursuant to Section
8(e) below, such later date on which
Issuer’s obligations under this
Transaction have been satisfied in
full) the amount of which differs
from the Ordinary Dividend Amount
for such dividend or distribution.
If no such ex-dividend date occurs
within a regular quarterly dividend
period, an ex-dividend date with a
Dividend of zero (0) shall be deemed
to have occurred on the last
Scheduled Trading Day of such
regular quarterly dividend period.
	 
	 	 
	Dividend:

	 	Any dividend or distribution on the
Shares (other than any dividend or
distribution of the type described
in Sections 11.2(e)(i),
11.2(e)(ii)(A) or 11.2(e)(ii)(B) of
the Equity Definitions).
	 
	 	 
	Ordinary Dividend Amount:

	 	For the first Dividend on the Shares
for which the ex-dividend date
occurs during any regular quarterly
dividend period of Issuer, USD 0.34,
and for any other Dividend on the
Shares for which the ex-dividend
date occurs during the same regular
quarterly dividend period, USD 0.00.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	New Shares:

	 	In the definition of New Shares in
Section 12.1(i) of the Equity
Definitions, the text in clause (i)
thereof shall be deleted in its
entirety and replaced with “publicly
quoted, traded or listed on any of
the New York Stock Exchange, The
NASDAQ Global Market or The NASDAQ
Global Select Market (or their
respective successors)”.
	 
	 	 
	Consequences of Merger Events:
	 	 
	 
	 	 
	(a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	(b) Share-for-Other:

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

	 	Cancellation and Payment
(Calculation Agent Determination);
provided that, the Calculation Agent
may elect Component Adjustment for
all or part of the Transaction.
	 
	 	 
	Tender Offer:

	 	Applicable; provided however that,
if an event occurs that constitutes
both a Tender Offer under Section
12.1(d) of the Equity Definitions
and Additional

8

 

	 	 	 

	 

	 	Termination Event
under this Confirmation, Dealer may
elect, in its commercially
reasonable judgment, whether the
provisions of Section 12.3 of the
Equity Definitions will apply.
	 
	 	 
	Consequences of Tender Offers:
	 	 
	 
	 	 
	(a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	(b) Share-for-Other:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	(c) Share-for-Combined:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Modified Calculation Agent Adjustment:

	 	If, in respect of any Merger Event
to which Modified Calculation Agent
Adjustment applies, the adjustments
to be made in accordance with
Section 12.2(e)(i) of the Equity
Definitions would result in Issuer
being different from the issuer of
the Shares, then with respect to
such Merger Event, as a condition
precedent to the adjustments
contemplated in Section 12.2(e)(i)
of the Equity Definitions, Issuer
and the issuer of the Shares shall,
prior to the Merger Date, have
entered into such documentation
containing representations,
warranties and agreements relating
to securities law and other issues
as requested by Dealer that Dealer
has determined based on the advice
of counsel, in its reasonable
discretion, to be reasonably
necessary or advisable to allow
Dealer to continue as a party to the
Transaction, as adjusted under
Section 12.2(e)(i) of the Equity
Definitions, and to preserve its
hedging or hedge unwind activities
in connection with the Transaction
in a manner compliant with
applicable legal, regulatory or
self-regulatory requirements, or
with related policies and procedures
applicable to Dealer, and if such
conditions are not met or if the
Calculation Agent determines that no
adjustment that it could make under
Section 12.2(e)(i) of the Equity
Definitions will produce a
commercially reasonable result, then
the consequences set forth in
Section 12.2(e)(ii) of the Equity
Definitions shall apply.
	 
	 	 
	 

	 	For the avoidance of doubt, if
Modified Calculation Agent
Adjustment applies as a consequence
of a Merger Event or Tender Offer,
and so long as Section 12.2(e)(ii)
or 12.3(d)(ii) does not apply, the
Calculation Agent shall make
adjustments pursuant to Section
12.2(e) or Section 12.3(d), as the
case may be, of the Equity
Definitions, to preserve the fair
value of the relevant Transaction to
the parties by making adjustments to
account for the net economic gain
obtained or loss suffered by Dealer
(taking into account any gain or
loss on Dealer’s Hedge Position in
respect of the relevant Transaction
and in each case applying consistent
methodology (which, for the
avoidance of doubt, will not be
based on mid-market quotes but will
be based on Dealer’s side of the
market)) as a result of the
occurrence of such Merger Event or
Tender Offer.

9

 

	 	 	 

	Nationalization, Insolvency
or Delisting:

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

	 	Applicable; provided that, Section
12.9(a)(ii) shall be amended by
inserting, at the end thereof, the
words “, after using commercially
reasonable efforts to avoid such
increased cost”.
	 
	 	 
	(b) Failure to Deliver:

	 	Applicable
	 
	 	 
	(c) Insolvency Filing:

	 	Applicable
	 
	 	 
	(d) Hedging Disruption:

	 	Applicable; provided that, (i)
Section 12.9(a)(v) of the Equity
Definitions is hereby modified by
inserting the following two phrases
at the end of such Section:
	 
	 	 
	 

	 	“For the avoidance of doubt, the
term “equity price risk” shall be
deemed to include, but shall not be
limited to, stock price and
volatility risk. And, for the
further avoidance of doubt, any such
transactions or assets referred to
in phrases (A) or (B) above, must be
available on commercially reasonable
pricing terms, as anticipated on the
Trade Date; provided that, the
scheduled exercise or scheduled
expiration of call options on the
Shares (with a Trade Date of even
date herewith) sold by Dealer to
Issuer in accordance with the terms
of such call options shall not
provide the sole basis for the
occurrence of a Hedging Disruption.”
	 
	 	 
	 

	 	(ii) Section 12.9(b)(iii) of the
Equity Definitions is hereby
modified by inserting in the third
line thereof, after the words “to
terminate the Transaction”, the
following words:
	 
	 	 
	 

	 	“or a portion of the Transaction
affected by such Hedging
Disruption”.
	 
	 	 
	(e) Increased Cost of Hedging:

	 	Applicable; provided that, Section
12.9(a)(vi) shall be amended by
inserting, in the first line thereof
after the word “incur”, the words “,
after using commercially reasonable
efforts to avoid any increased costs
contemplated hereunder”.

10

 

	 	 	 

	(f) Loss of Stock Borrow:

	 	Applicable
	 
	 	 
	Maximum Stock Loan Rate:

	 	[ ]% per annum
	 
	 	 
	(g) Increased Cost of Stock Borrow:

	 	Applicable
	 
	 	 
	Initial Stock Loan Rate:

	 	[ ]% per annum
	 
	 	 
	Hedging Party:

	 	Dealer for all applicable Additional
Disruption Events.
	 
	 	 
	Determining Party:

	 	Dealer; provided that, upon receipt
of written request from Issuer,
Determining Party shall promptly
(but in no event later than within
seven (7) Scheduled Trading Days
from the receipt of such request)
provide Issuer with a written
explanation describing in reasonable
detail any determination made by it
(including any quotations, market
data or information from internal
sources used in making such
calculations, but without disclosing
Dealer’s proprietary models).
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments
Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	3.
Calculation Agent:

	 	Dealer; provided that, upon receipt
of written request from Issuer,
Calculation Agent shall promptly
(but in no event later than within
seven (7) Scheduled Trading Days
from the receipt of such request)
provide Issuer with a written
explanation describing in reasonable
detail any calculation, adjustment
or determination made by it
(including any quotations, market
data or information from internal
sources used in making such
calculations, but without disclosing
Dealer’s proprietary models).

       4. Account Details:

	 
	 	 	Dealer Payment Instructions:

	 	 	 

	[ ]
	 	 
	ABA No.:

	 	[ ]
	Acct.:

	 	[ ]
	Acct. No.:

	 	[ ]
	SWIFT:

	 	[ ]

	 	 	Account for delivery of Shares to Dealer: To be provided by Dealer
	 
	 	 	Issuer Payment Instructions: To be provided by Issuer.

       5. Offices:

	 
	 	 	The Office of Dealer for the Transaction is: London

JPMorgan Chase Bank, National Association

London Branch

P.O. Box 161

11

 

60 Victoria Embankment

London EC4Y 0JP

England

	 	 	The Office of Issuer for the Transaction is:

155 South Limerick Road, Limerick, Pennsylvania 19468

     6. Notices: For purposes of this Confirmation:

(a)       
Address for notices or communications to Issuer:

To: Teleflex Incorporated

Attn: Richard A. Meier

155 South Limerick Road

Limerick, Pennsylvania 19468

Telephone: (610) 948-5100

Facsimile: (610) 948-5101

(b)       
Address for notices or communications to Dealer:

To: JPMorgan Chase Bank, National Association

4 New York Plaza, Floor 18

New York, NY 10004-2413

Attention: Mariusz Kwasnik

Title: Operations Analyst, EDG Corporate Marketing

Telephone No.: (212) 623-7223

Facsimile No.: (212) 623-7719

     7. Representations, Warranties and Agreements:

     (a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Issuer represents and warrants to and for the benefit of, and agrees with, Dealer
as follows:

     (i) On the Trade Date and as of the date of any election by Issuer of the Share
Termination Alternative under (and as defined in) Section 8(a) below, (A) Issuer is not
aware of any material nonpublic information regarding Issuer or the Shares and (B) all
reports and other documents filed by Issuer with the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), when
considered as a whole (with the more recent such reports and documents deemed to amend
inconsistent statements contained in any earlier such reports and documents), do not
contain any untrue statement of a material fact or any omission of a material fact required
to be stated therein or necessary to make the statements therein, in the light of the
circumstances in which they were made, not misleading.

     (ii) Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer
acknowledges that neither Dealer nor any of its affiliates is making any representations or
warranties or taking any position or expressing any view with respect to the treatment of
the Transaction under any accounting standards including ASC Topic 260, Earnings Per Share,
ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from
Equity and ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity (or any
successor issue statements).

     (iii) Prior to the Trade Date, Issuer shall deliver to Dealer a resolution of Issuer’s
board of directors authorizing the Transaction and such other certificate or certificates
as Dealer shall reasonably request.

     (iv) Issuer is not entering into the Transaction to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or to
raise or depress the price of the Shares (or any security convertible into or exchangeable
for Shares) for the purposes of inducing the purchase or sale of the Shares by others.

12

 

     (v) Issuer is not, and after giving effect to the transactions contemplated hereby
will not be, required to register as an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.

     (vi) On the Trade Date, the Premium Payment Date and any Additional Premium Payment
Date (A) the assets of Issuer at their fair valuation exceed the liabilities of Issuer,
including contingent liabilities, (B) the capital of Issuer is adequate to conduct the
business of Issuer and (C) Issuer has the ability to pay its debts and obligations as such
debts mature and does not intend to, or does not believe that it will, incur debt beyond
its ability to pay as such debts mature.

     (vii) Issuer shall not take any action to decrease the number of Available Shares
below the Capped Number (each as defined below).

     (viii) The representations and warranties of Issuer set forth in Section 3 of the
Agreement and Section 1 of the Underwriting Agreement are true and correct as of the Trade
Date and the Effective Date and are hereby deemed to be repeated to Dealer as if set forth
herein.

     (ix) (A) During the period starting on the first Expiration Date and ending on the
last Expiration Date, but excluding any Open Trading Period, (the “Settlement Period”), the
Shares or securities that are convertible into, or exchangeable or exercisable for Shares
will not be subject to a “restricted period,” as defined in Regulation M under the Exchange
Act (“Regulation M”) and (B) Issuer shall not engage in any “distribution,” as such term is
defined in Regulation M until the second Exchange Business Day immediately following the
Settlement Period.

     “Open Trading Period” shall mean (i) a period commencing on March 5, 2018 and ending
on March 23, 2018 and (ii) a period commencing on April 27, 2018 and ending on May 17,
2018, each subject to extension for any Market Disruption Event as determined by Dealer.

     (x) During the Settlement Period and on any other Exercise Date, neither Issuer nor
any “affiliate” or “affiliated purchaser” (each as defined in Rule 10b-18 of the Exchange
Act (“Rule 10b-18”)) shall directly or indirectly (including, without limitation, by means
of any cash-settled or other derivative instrument) purchase, offer to purchase, place any
bid or limit order that would effect a purchase of, or commence any tender offer relating
to, any Shares (or an equivalent interest, including a unit of beneficial interest in a
trust or limited partnership or a depository share) or any security convertible into or
exchangeable or exercisable for Shares, except through Dealer.

     (xii) Issuer agrees that it (A) will not during the Settlement Period make, or permit
to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of
any Merger Transaction or potential Merger Transaction unless such public announcement is
made prior to the opening or after the close of the regular trading session on the Exchange
for the Shares; (B) shall promptly (but in any event prior to the next opening of the
regular trading session on the Exchange) notify Dealer following any such announcement that
such announcement has been made; and (C) shall promptly (but in any event prior to the next
opening of the regular trading session on the Exchange) provide Dealer with written notice
specifying (i) Issuer’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18)
during the three full calendar months immediately preceding the announcement date that were
not effected through Dealer or its affiliates and (ii) the number of Shares purchased
pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full
calendar months preceding the announcement date. Such written notice shall be deemed to be
a certification by Issuer to Dealer that such information is true and correct. In
addition, Issuer shall promptly notify Dealer of the earlier to occur of the completion of
such transaction and the completion of the vote by target shareholders. “Merger
Transaction” means any merger, acquisition or similar transaction involving a
recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

     (xiii) Any Shares issued or delivered in connection with the Transaction shall be duly
authorized and validly issued, fully paid and non-assessable, and the issuance or delivery
thereof shall not be subject to any preemptive or similar rights and shall, upon issuance,
be accepted for

13

 

listing or quotation on the Exchange. The Shares of Issuer initially issuable upon
exercise of the Warrants have been reserved for issuance by all required corporate action
of the Issuer.

     (b) Each of Dealer and Issuer agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended, and is
entering into the Transaction as principal (and not as agent or in any other capacity, fiduciary or
otherwise) and not for the benefit of any third party.

     (c) Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to
Dealer is intended to be exempt from registration under the Securities Act, by virtue of Section
4(2) thereof. Accordingly, Dealer represents and warrants to Issuer that (i) it has the financial
ability to bear the economic risk of its investment in the Transaction and is able to bear a total
loss of its investment and its investments in and liabilities in respect of the Transaction, which
it understands are not readily marketable, are not disproportionate to its net worth, and it is
able to bear any loss in connection with the Transaction, including the loss of its entire
investment in the Transaction, (ii) it is an “accredited investor” as that term is defined in
Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for
its own account and without a view to the distribution or resale thereof, (iv) the assignment,
transfer or other disposition of the Transaction has not been and will not be registered under the
Securities Act and is restricted under this Confirmation, the Securities Act and state securities
laws, and (v) its financial condition is such that it has no need for liquidity with respect to its
investment in the Transaction and no need to dispose of any portion thereof to satisfy any existing
or contemplated undertaking or indebtedness and is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and understands and
accepts, the terms, conditions and risks of the Transaction.

     (d) Dealer represents to Issuer that Dealer is a “financial institution,” “swap participant”
and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of Title
11 of the United States Code (the “Bankruptcy Code”). The parties hereto agree and acknowledge
that they intend for (A) this Confirmation to be (i) a “securities contract,” as such term is
defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery
hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer
obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment”
within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term
is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other
transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer”
within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer is entitled to the
protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(b)(27), 362(o),
546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

     (e) As a condition to the effectiveness of the Transaction, Issuer shall deliver to Dealer (A)
an incumbency certificate, dated as of the Trade Date, of Issuer in customary form and (B) an
opinion of counsel, dated as of the Effective Date (containing customary exceptions and
qualifications) and reasonably acceptable to Dealer in form and substance, with respect to the
matters set forth in Section 3(a) of the Agreement and Section 7(a)(v) and (xiii).

     8. Other Provisions:

     (a) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If Issuer shall owe Dealer any amount pursuant to Section 12.2, 12.3, 12.6, 12.7 or 12.9
of the Equity Definitions or pursuant to Section 6(d)(ii) of the Agreement (a “Payment
Obligation”), Issuer shall have the right, in its sole discretion, to satisfy any such Payment
Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic
notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M.,
New York City time, on the Merger Date, Tender Offer Date, Announcement Date, Early Termination
Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable
(“Notice of Share Termination”); provided that, if Issuer does not elect to satisfy its Payment
Obligation by the Share Termination Alternative, Dealer shall have the right, in its sole
discretion, to elect to require Issuer to satisfy its Payment Obligation by the Share Termination
Alternative, notwithstanding Issuer’s failure to elect or election to the contrary; and provided
further that, Issuer shall not have the right to so elect (but, for the avoidance of doubt, Dealer
shall have the right to so elect) in the event of (i) an Insolvency, a Nationalization, a Tender
Offer or a Merger

14

 

Event, in each case, in which the consideration or proceeds to be paid to holders of Shares
consists solely of cash or (ii) an Event of Default in which Issuer is the Defaulting Party or a
Termination Event in which Issuer is the Affected Party, which Event of Default or Termination
Event resulted from an event or events within Issuer’s control. Upon such Notice of Share
Termination, the following provisions shall apply on the Scheduled Trading Day immediately
following the Merger Date, the Tender Offer Date, Announcement Date, Early Termination Date or date
of cancellation or termination in respect of an Extraordinary Event, as applicable:

	 	 	 

	Share Termination Alternative:

	 	Applicable and means that Issuer shall
deliver to Dealer the Share Termination
Delivery Property on the date on which
the Payment Obligation would otherwise be
due pursuant to Section 12.2, 12.3, 12.6,
12.7 or 12.9 of the Equity Definitions or
Section 6(d)(ii) of the Agreement, as
applicable (the “Share Termination
Payment Date”), in satisfaction of the
Payment Obligation.
	 
	 	 
	Share Termination Delivery
Property:

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

	 	The value of property contained in one
Share Termination Delivery Unit on the
date such Share Termination Delivery
Units are to be delivered as Share
Termination Delivery Property, as
determined by the Calculation Agent in
its discretion by commercially reasonable
means and notified by the Calculation
Agent to Issuer at the time of
notification of the Payment Obligation.
	 
	 	 
	Share Termination Delivery Unit:

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

	 	Applicable
	 
	 	 
	Other Applicable Provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections
9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of
the Equity Definitions will be applicable
as if “Physical Settlement” applied to
the Transaction, except that all
references to “Shares” shall be read as
references to “Share Termination Delivery
Units”; provided that, the Representation
and Agreement contained in Section 9.11
of the Equity Definitions shall be
modified by excluding any representations
therein relating to restrictions,
obligations, limitations or requirements
under applicable securities laws with
respect to securities comprising Share
Termination Delivery Units solely as a
result of the fact that Issuer is the
issuer of any Share Termination Delivery
Units (or any security forming a part
thereof). If, in the reasonable opinion
of Issuer or Dealer, based on advice of
counsel, for any reason, any securities

15

 

	 	 	 

	 

	 	comprising the Share Termination Delivery Units deliverable
pursuant to this Section 8(a) would not be immediately freely
transferable by Dealer under Rule 144 under the Securities Act,
then Dealer may elect to either (x) permit delivery of such
securities notwithstanding any restriction on transfer or (y) have
the provisions set forth in Section 8(b) below apply.

     (b) Registration/Private Placement Procedures. (i) With respect to the Transaction, the
following provisions shall apply to the extent provided for above opposite the caption “Net Share
Settlement” in Section 2 or in paragraph (a) of this Section 8. If so applicable, then, at the
election of Issuer (and for the avoidance of doubt Issuer must make an election described in
subclause (A) or (B) below) by notice to Dealer within two Exchange Business Days after the
relevant delivery obligation arises, but in any event at least one Exchange Business Day prior to
the date on which such delivery obligation is due, either (A) all Shares or Share Termination
Delivery Units, as the case may be, delivered by Issuer to Dealer shall be, at the time of such
delivery, covered by an effective registration statement of Issuer for immediate resale by Dealer
(such registration statement and the corresponding prospectus (the “Prospectus”) (including,
without limitation, any sections describing the plan of distribution) in form and content
commercially reasonably satisfactory to Dealer) or (B) Issuer shall deliver additional Shares or
Share Termination Delivery Units, as the case may be, so that the value of such Shares or Share
Termination Delivery Units, as determined by the Calculation Agent to reflect an appropriate
liquidity discount, equals the value of the number of Shares or Share Termination Delivery Units
that would otherwise be deliverable if such Shares or Share Termination Delivery Units were freely
tradeable (without prospectus delivery) upon receipt by Dealer (such value, the “Freely Tradeable
Value”); provided that, if requested by Dealer, Issuer shall make the election described in this
clause (B) with respect to Shares delivered on all Settlement Dates no later than one Exchange
Business Day prior to the first Exercise Date, and the applicable procedures described below shall
apply to all Shares delivered on the Settlement Dates on an aggregate basis. (For the avoidance of
doubt, as used in this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

     (ii) If Issuer makes the election described in clause (b)(i)(A) above:

     (A) Dealer (or an affiliate of Dealer designated by Dealer) shall be afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Issuer that
is customary in scope for underwritten offerings of equity securities and that yields
results that are commercially reasonably satisfactory to Dealer or such affiliate, as the
case may be; and

     (B) Dealer (or an affiliate of Dealer designated by Dealer) and Issuer shall enter
into an agreement (a “Registration Agreement”) on customary and commercially reasonable
terms in connection with the public resale of such Shares or Share Termination Delivery
Units, as the case may be, by Dealer or such affiliate substantially similar to
underwriting agreements customary for underwritten offerings of equity securities of
similar size, in form and substance commercially reasonably satisfactory to Dealer or such
affiliate and Issuer, which Registration Agreement shall include, without limitation,
provisions substantially similar to those contained in such underwriting agreements
relating to the indemnification of, and contribution in connection with the liability of,
Dealer and its affiliates and Issuer, shall provide for the payment by Issuer of all
expenses in connection with such resale, including all registration costs and all
reasonable fees and expenses of counsel for Dealer, and shall provide for the delivery of
customary accountants’ “comfort letters” to Dealer or such affiliate with respect to the
financial statements and certain financial information contained in or incorporated by
reference into the Prospectus.

     (iii) If Issuer makes the election described in clause (b)(i)(B) above:

     (A) Dealer (or an affiliate of Dealer designated by Dealer) and any potential
institutional purchaser of any such Shares or Share Termination Delivery Units, as the case
may be, from Dealer or such affiliate identified by Dealer shall be afforded a reasonable
opportunity to conduct a due diligence investigation in compliance with applicable law with
respect to Issuer customary in scope for private placements of equity securities
(including, without limitation, the right to have made available to them for inspection all
financial and other records, pertinent

16

 

corporate documents and other information reasonably requested by them), subject to
execution by such recipients of customary confidentiality agreements reasonably acceptable
to Issuer;

     (B) Dealer (or an affiliate of Dealer designated by Dealer) and Issuer shall enter
into an agreement (a “Private Placement Agreement”) on commercially reasonable terms in
connection with the private placement of such Shares or Share Termination Delivery Units,
as the case may be, by Issuer to Dealer or such affiliate and the private resale of such
            shares by Dealer or such affiliate, substantially similar to private placement purchase
agreements customary for private placements of equity securities of similar size, in form
and substance commercially reasonably satisfactory to Dealer and Issuer, which Private
Placement Agreement shall include, without limitation, provisions substantially similar to
those contained in such private placement purchase agreements relating to the
indemnification of, and contribution in connection with the liability of, Dealer and its
affiliates and Issuer, shall provide for the payment by Issuer of all reasonable expenses
in connection with such resale, including all fees and expenses of counsel for Dealer,
shall contain representations, warranties and agreements of Issuer reasonably necessary or
advisable to establish and maintain the availability of an exemption from the registration
requirements of the Securities Act for such resales, and shall use reasonable efforts to
provide for the delivery of customary accountants’ “comfort letters” to Dealer or such
affiliate with respect to the financial statements and certain financial information
contained in or incorporated by reference into the offering memorandum prepared for the
resale of such Shares;

     (C) Issuer agrees that any Shares or Share Termination Delivery Units so delivered to
Dealer, (i) may be transferred by and among Dealer and its affiliates, and Issuer shall
effect such transfer without any further action by Dealer and (ii) after the minimum
“holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed
with respect to such Shares or any securities issued by Issuer comprising such Share
Termination Delivery Units, Issuer shall promptly remove, or cause the transfer agent for
such Shares or securities to remove, any legends referring to any such restrictions or
requirements from such Shares or securities upon delivery by Dealer (or such affiliate of
Dealer) to Issuer or such transfer agent of any seller’s and broker’s representation
letters customarily delivered by Dealer in connection with resales of restricted securities
pursuant to Rule 144 under the Securities Act, without any further requirement for the
delivery of any certificate, consent, agreement, opinion of counsel, notice or any other
document, any transfer tax stamps or payment of any other amount or any other action by
Dealer (or such affiliate of Dealer); and

     (D) Issuer shall not take, or cause to be taken, any action that would make
unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the
sale by Issuer to Dealer (or any affiliate designated by Dealer) of the Shares or Share
Termination Delivery Units, as the case may be, or the exemption pursuant to Section 4(1)
or Section 4(3) of the Securities Act for resales of the Shares or Share Termination
Delivery Units, as the case may be, by Dealer (or any such affiliate of Dealer).

     (c) Make-whole Shares. If Issuer makes the election described in clause (i)(B) of paragraph
(b) of this Section 8, then Dealer or its affiliates may sell (which sale shall be made in a
commercially reasonable manner) such Shares or Share Termination Delivery Units, as the case may
be, during a period (the “Resale Period”) commencing on the Exchange Business Day following
delivery of such Shares or Share Termination Delivery Units, as the case may be, and ending on the
Exchange Business Day on which Dealer or its affiliates completes the sale of all such Shares or
Share Termination Delivery Units, as the case may be, or a sufficient number of Shares or Share
Termination Delivery Units, as the case may be, so that the realized net proceeds of such sales
exceed the Freely Tradeable Value. If any of such delivered Shares or Share Termination Delivery
Units remain after such realized net proceeds exceed the Freely Tradeable Value, Dealer shall
return such remaining Shares or Share Termination Delivery Units to Issuer. If the Freely
Tradeable Value exceeds the realized net proceeds from such resale, Issuer shall transfer to Dealer
by the open of the regular trading session on the Exchange on the Exchange Trading Day immediately
following the last day of the Resale Period the amount of such excess (the “Additional Amount”) in
cash or in a number of additional Shares or Share Termination Delivery Units, as the case may be,
(“Make-whole Shares”) in an amount that, based on the VWAP Price on the last day of the Resale
Period, has a dollar value equal to the Additional Amount. The Resale Period shall continue to
enable the

17

 

sale of the Make-whole Shares in the manner contemplated by this Section 8(c). This provision
shall be applied successively until the Additional Amount is equal to zero, subject to Section
8(e).

     (d) Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this
Confirmation, in no event shall Dealer be entitled to receive, or shall be deemed to receive, any
Shares if, immediately upon giving effect to such receipt of such Shares, (i) the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated
thereunder) of Shares by Dealer, any of its affiliates subject to aggregation with Dealer for
purposes of the “beneficial ownership” test under Section 13 of the Exchange Act and all persons
who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer
with respect to “beneficial ownership” of any Shares (collectively, “Dealer Group”) would be equal
to or greater than 9.0% or more of the outstanding Shares on the date of determination (ii)
Warrant Equity Percentage exceeds 14.5% or (iii) Dealer, Dealer Group or any person whose ownership
position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such
person, a “Dealer Person”) under Section 203 of the Delaware General Corporation Law or other
federal, state or local regulations or regulatory orders applicable to ownership of Shares
(“Applicable Laws”), would own, beneficially own, constructively own, control, hold the power to
vote or otherwise meet a relevant definition of ownership in excess of a number of Shares equal to
(x) the number of Shares that would give rise to reporting or registration obligations or other
requirements (including obtaining prior approval by a state or federal regulator) of a Dealer
Person under Applicable Laws and with respect to which such requirements have not been met or the
relevant approval has not been received or that would subject a Dealer Person to restrictions
(including restrictions relating to business combinations and other designated transactions) under
Applicable Laws minus (y) 1.0% of the number of Shares outstanding on the date of determination
(either such condition described in clause (i), (ii) or (iii), an “Excess Ownership Position”).
The “Warrant Equity Percentage” as of any day is the fraction, expressed as a percentage, (i) the
numerator of which is the sum of (x) the sum of the products of the Number of Warrants and the
Warrant Entitlement for all Components and (y) the aggregate number of Shares underlying any other
warrants purchased by Dealer from Issuer, and (ii) the denominator of which is the number of Shares
outstanding. If any delivery owed to Dealer hereunder is not made, in whole or in part, as a
result of this provision, Issuer’s obligation to make such delivery shall not be extinguished and
Issuer shall make such delivery as promptly as practicable after, but in no event later than one
Exchange Business Day after, Dealer gives notice to Issuer that such delivery would not result in
the existence of an Excess Ownership Position.

     (e) Limitations on Settlement by Issuer. Notwithstanding anything herein or in the Agreement
to the contrary, in no event shall Issuer be required to deliver Shares in connection with the
Transaction in excess of 3,990,711 Shares (as such number may be adjusted from time to time in
accordance with the provisions hereof) (the “Capped Number”). Issuer covenants to maintain a
number of authorized but unissued Shares that are not reserved for future issuance in connection
with transactions in the Shares (other than the Transaction) on the day the Capped Number is
determined and each day during the Transaction (such Shares, the “Available Shares”) equal to or
greater than the Capped Number. In the event Issuer shall not have delivered the full number of
Shares otherwise deliverable as a result of this Section 8(e) (the resulting deficit, the “Deficit
Shares”), Issuer shall be continually obligated to deliver Shares, from time to time until the full
number of Deficit Shares have been delivered pursuant to this paragraph, when, and to the extent,
that (A) Shares are repurchased, acquired or otherwise received by Issuer or any of its
subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other
consideration), (B) authorized and unissued Shares reserved for issuance in respect of other
transactions prior to such date which prior to the relevant date become no longer so reserved and
(C) Issuer additionally authorizes any unissued Shares that are not reserved for other transactions
(such events as set forth in clauses (A), (B) and (C) above, collectively, the “Share Issuance
Events”). To the extent and for so long as Deficit Shares exist, Issuer shall promptly notify
Dealer of the occurrence of any of the Share Issuance Events (including the number of Shares
subject to clause (A), (B) or (C) and the number of Shares to be delivered) and, as promptly as
reasonably practicable, deliver such Shares thereafter. Issuer shall not, until Issuer’s
obligations under the Transaction have been satisfied in full, use any Shares that become available
for potential delivery to Dealer as a result of any Share Issuance Event for the settlement or
satisfaction of any transaction or obligation other than the Transaction or reserve any such Shares
for future issuance for any purpose other than to satisfy Issuer’s obligations to Dealer under the
Transaction.

18

 

     (f) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Issuer’s bankruptcy. For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during Issuer’s bankruptcy to
any claim arising as a result of a breach by Issuer of any of its obligations under this
Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that the
obligations of Issuer under this Confirmation are not secured by any collateral that would
otherwise secure the obligations of Issuer herein under or pursuant to any other agreement.

     (g) Adjustments. Dealer acknowledges and agrees that any adjustment by the Calculation Agent
to the terms of the Transaction after the Trade Date that affects the Number of Shares to be
Delivered or the Option Cash Settlement Amount, as applicable, would be an adjustment that is based
on factors that would serve as an input to or theoretical modeling assumptions for the fair value
of a fixed-for-fixed option on equity shares. These factors may include Issuer’s stock price and
additional variables, including the strike price of the instrument, term of the instrument,
expected dividends or other dilutive activities, stock borrow cost, interest rates, stock price
volatility, Issuer’s credit spread or the ability to maintain a standard hedge position in the
underlying shares.

     (h) Amendments to Equity Definitions. The following amendments shall be made to the Equity
Definitions:

     (i) The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause
(A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent Adjustment”
is specified as the Method of Adjustment in the related Confirmation of a Share Option
Transaction, then following the announcement or occurrence of any Potential Adjustment
Event, the Calculation Agent will determine whether such Potential Adjustment Event has a
material effect on the theoretical value of the relevant Shares or options on the Shares
and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and,
the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by
deleting the words “diluting or concentrative” and the words “(provided that, no
adjustments will be made to account solely for changes in volatility, expected dividends,
stock loan rate or liquidity relative to the relevant Shares)” and replacing such latter
phrase with the words “(and, for the avoidance of doubt, adjustments may be made to account
solely for changes in volatility, expected dividends, stock loan rate or liquidity relative
to the relevant Shares resulting from such Potential Adjustment Event)” For the avoidance
of doubt, the Calculation Agent shall make adjustments pursuant to Section 11.2(c) of the
Definitions (as amended hereby) to preserve the fair value of the relevant Transaction to
the parties by making adjustments to account for the net economic gain obtained or loss
suffered by Dealer (taking into account any gain or loss on Dealer’s Hedge Position in
respect of the relevant Transaction and, in each case, applying consistent methodology
(which, for the avoidance of doubt, will not be based on mid-market quotes but will be
based on Dealer’s side of the market)) as a result of the occurrence of such Potential
Adjustment Event;

     (ii) Sections 11.2(a) and 11.2(e)(vii) of the Equity Definitions are hereby amended by
deleting the words “diluting or concentrative” and replacing them with “material” and
adding the phrase “or options on the Shares” at the end of the sentence;

     (iii) Section 12.1(l) of the Equity Definitions shall be amended (x) by deleting the
parenthetical phrase in both the third line thereof and the fifth line thereof and (y) by
replacing the word “that” in both the third line thereof and the fifth line thereof with
the words “whether or not such announcement”, (ii) Sections 12.2(b), 12.2(e), 12.3(a) and
12.3(d) of the Equity Definitions shall each be amended by replacing each occurrence of the
words “Merger Date” and “Tender Offer Date”, as the case may be, with the words
“Announcement Date”, and (iii) (A) Section 12.2(e) shall be amended by inserting, in the
first line thereof, after the newly inserted words “Announcement Date”, the words “(or, if
the Calculation Agent reasonably determines that such adjustment is appropriate, on the
relevant Merger Date or the date on which the Calculation Agent reasonably determines that
the Merger Event, with respect to which such Announcement Date has occurred, will not be
completed)” and (B) Section 12.3(d) shall be amended by inserting, in the first line
thereof, after the newly inserted words “Announcement Date”, the words “(or, if the

19

 

Calculation Agent reasonably determines that such adjustment is appropriate, on the
relevant Tender Offer Date or the date on which the Calculation Agent reasonably determines
that an event, with respect to which such Announcement Date has occurred, will not be
completed)”.

     (iv) Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) deleting
(1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and
(3) the phrase “in each case” in subsection (B); (B) replacing “will lend” with “lends” in
subsection (B); and (C) deleting the phrase “neither the Non-Hedging Party nor the Lending
Party lends Shares in the amount of the Hedging Shares or” in the penultimate sentence;

     (v) Section 12.9(b)(v) of the Equity Definitions is hereby amended by (A) adding the
word “or” immediately before subsection “(B)” and deleting the comma at the end of
subsection (A); and (B)(1) deleting subsection (C) in its entirety, (2) deleting the word
“or” immediately preceding subsection (C), (3) replacing in the penultimate sentence the
words “either party” with “the Hedging Party” and (4) deleting clause (X) in the final
sentence; provided, however that, such amendment to Section 12.9(b)(iv) shall be deemed
applicable to this Transaction solely until August 1, 2017 and shall deemed null and void
with respect to any date occurring after such date; and

     (vi) Section 12.7(b) of the Equity Definitions is hereby amended by deleting the words
“(and in any event within five Exchange Business Days) by the parties after” appearing
after the words “agreed promptly” and replacing with the words “by the parties on or prior
to”.

     (i) Transfer and Assignment. Dealer may transfer or assign its rights and obligations
hereunder and under the Agreement, in whole or in part, at any time without the consent of Issuer.
Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing
Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Issuer,
Dealer may designate any of its affiliates to purchase, sell, receive or deliver such shares or
other securities and otherwise to perform Dealer obligations in respect of the Transaction and any
such designee may assume such obligations. Dealer shall be discharged of its obligations to Issuer
to the extent of any such performance.

     (j) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Issuer and each of its employees, representatives, or other agents may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Issuer relating to such tax treatment and tax structure.

     (k) Additional Termination Events. The occurrence of any of the following shall constitute an
Additional Termination Event with respect to which the Transaction shall be the sole Affected
Transaction and Issuer shall be the sole Affected Party and Dealer shall be the party entitled to
designate an Early Termination Date pursuant to Section 6(b) of the Agreement and to determine the
amount payable pursuant to Section 6(e) of the Agreement; provided that, with respect to any
Additional Termination Event, Dealer may choose to treat part of the Transaction as the sole
Affected Transaction, and, upon the termination of the Affected Transaction, a Transaction with
terms identical to those set forth herein except with a Number of Warrants equal to the unaffected
number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full
force and effect:

     (i) Dealer reasonably determines based on the advice of counsel that it is advisable
to terminate a portion of the Transaction so that Dealer’s related hedging activities will
comply with applicable securities laws, rules or regulations or related policies and
procedures of Dealer (whether or not such requirements, policies or procedures are imposed
by law or have been voluntarily adopted by Dealer), or Dealer, despite using commercially
reasonable efforts, is unable or reasonably determines based on the advice of counsel that
it is impractical or illegal to hedge its obligations pursuant to this Transaction in the
public market without registration under the Securities Act or as a result of any legal,
regulatory or self-regulatory requirements;

     (ii) at any time at which any Excess Ownership Position occurs, Dealer, in its
discretion, is unable to effect a transfer or assignment to a third party of the
Transaction or any other transaction between the parties after using its commercially
reasonable efforts on pricing and terms and within a time period reasonably acceptable to
Dealer such that an Excess Ownership

20

 

Position no longer exists; provided that, Dealer shall treat only that portion of the
Transaction as the Affected Transaction as necessary so that such Excess Ownership Position
no longer exists;

     (iii) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act,
other than the Issuer, its subsidiaries and its and their respective employee benefit
plans, files a Schedule TO or any schedule, form or report under the Exchange Act
disclosing that such person or group has become, or Issuer acquires knowledge based upon a
public announcement by such a person or group, that such a person or group has become, the
direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of
the Issuer’s common equity representing more than 50% of the voting power of the Issuer’s
common equity;

     (iv) consummation of (x) any recapitalization, reclassification or change of Shares
(other than changes resulting from a subdivision or combination) as a result of which the
Shares would be converted into, or exchanged for, stock, other securities, other property
or assets or (y) any share exchange, consolidation or merger of Issuer pursuant to which
the Shares will be converted into cash, securities or other property or assets, or any
sale, conveyance, transfer, lease or other disposition, in one transaction or a series of
transactions, of all or substantially all of the consolidated assets of the Issuer and its
subsidiaries, taken as a whole, to any person other than the Issuer or one of its
subsidiaries; provided, however, that a transaction (A) as a result of which the holders of
all classes of the Issuer’s common equity immediately prior to such transaction will own,
directly or indirectly, more than 50% of all classes of common equity of the continuing or
surviving corporation or limited liability company (that is treated as a corporation for
U.S. federal income tax purposes) or transferee or a direct or indirect parent thereof
immediately after such transaction or (B) which is effected solely to change Issuer’s
jurisdiction of incorporation into a jurisdiction within the United States of America and
results in reclassification, conversion or exchange of outstanding Shares solely into shares of common stock of the surviving entity or a direct or indirect parent thereof,
shall not be an Additional Termination Event; provided further, that, for the avoidance of
doubt, the sale, conveyance, transfer, lease or other disposition, in one transaction or a
series of transactions, of all or substantially all of the assets of Issuer’s Commercial
and/or Aerospace segments (as defined in Issuer’s condensed consolidated financial
statements for the six months ended June 27, 2010) shall not constitute an Additional
Termination Event; or

     (v) the Issuer’s stockholders approve any plan or proposal for the liquidation or
dissolution of the Issuer.

     Notwithstanding the foregoing, a transaction or transactions described in clause (iii)
or (iv) will not constitute an Additional Termination Event if at least 90% of the
consideration (excluding cash payments for fractional shares and cash payments made
pursuant to dissenters appraisal rights and cash dividends) received or to be received by
Issuer’s shareholders in connection with such transaction or transactions consists of
shares of common stock or equivalent common equity that are listed or quoted on any of the
New York Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or
any of their respective successors) or will be so listed or quoted when issued or exchanged
in connection with such transaction or transactions.

     (l) Effectiveness. If, on or prior to the Effective Date, Dealer reasonably determines based
in the advice of counsel that it is reasonably necessary or advisable to cancel the Transaction
because of concerns that Dealer’s related hedging activities could be viewed as not complying with
applicable securities laws, rules or regulations, the Transaction shall be cancelled and shall not
become effective, and neither party shall have any obligation to the other party in respect of the
Transaction.

     (m) Extension of Settlement. Dealer may divide any Component into additional Components and
designate the Expiration Date and the Number of Warrants for each such Component if Dealer
determines, in its reasonable discretion, that such further division is reasonably necessary or
advisable to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing
liquidity conditions in the cash market or stock loan market.

21

 

     (n) No Netting and Set-off. The provisions of Section 2(c) of the Agreement shall not apply
to the Transaction. Each party waives any and all rights it may have to set-off delivery or
payment obligations it owes to the other party under the Transaction against any delivery or
payment obligations owed to it by the other party, whether arising under the Agreement, under any
other agreement between parties hereto, by operation of law or otherwise.

     (o) Delivery of Cash. For the avoidance of doubt, nothing in this Confirmation shall be
interpreted as requiring the Issuer to deliver cash in respect of the settlement of the
Transaction, except in circumstances where the required cash settlement thereof is permitted for
classification of the contract as equity by ASC 815-40 (formerly EITF 00-19) as in effect on the
relevant Trade Date (including, without limitation, where the Issuer so elects to deliver cash or
fails timely to elect to deliver Shares or Share Termination Delivery Property in respect of such
settlement).

     (p) Governing Law. THE AGREEMENT, THIS CONFIRMATION AND ALL MATTERS ARISING IN CONNECTION
WITH THE AGREEMENT AND THIS CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW
DOCTRINE, OTHER THAN TITLE 14 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     (q) Amendment. This Confirmation and the Agreement may not be modified, amended or
supplemented, except in a written instrument signed by Issuer and Dealer.

     (r) Counterparts. This Confirmation may be executed in several counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

     9. Waiver of Jury Trial. Each party waives, to the fullest extent permitted by
applicable law, any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to the Transaction. Each party (i) certifies that no representative, agent or
attorney of the other party has represented, expressly or otherwise, that such other party would
not, in the event of such a suit, action or proceeding, seek to enforce the foregoing waiver and
(ii) acknowledges that it and the other party have been induced to enter into the Transaction by,
among other things, the mutual waivers and certifications provided herein.

     10. Submission to Jurisdiction. Section 13(b) of the Agreement is deleted in its
entirety and replaced by the following:

“Each party hereby irrevocably and unconditionally submits for itself and its property in
any suit, legal action or proceeding relating to the Agreement and/or the Transaction, or
for recognition and enforcement of any judgment in respect thereof, (each, “Proceedings”)
to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in New
York County, the courts of the United States of America for the Southern District of New
York and appellate courts from any thereof. Nothing in this Confirmation or the Agreement
precludes either party from bringing Proceedings in any other jurisdiction if (A) the
courts of the State of New York or the United States of America for the Southern District
of New York lack jurisdiction over the parties or the subject matter of the Proceedings or
decline to accept the Proceedings on the grounds of lacking such jurisdiction; (B) the
Proceedings are commenced by a party for the purpose of enforcing against the other party’s
property, assets or estate any decision or judgment rendered by any court in which
Proceedings may be brought as provided hereunder; (C) the Proceedings are commenced to
appeal any such court’s decision or judgment to any higher court with competent appellate
jurisdiction over that court’s decisions or judgments if that higher court is located
outside the State of New York or Borough of Manhattan, such as a federal court of appeals
or the U.S. Supreme Court; or (D) any suit, action or proceeding has been commenced in
another jurisdiction by or against the other party or against its property, assets or
estate and, in order to exercise or protect its rights, interests or remedies under the
Agreement or this Confirmation, the party (1) joins, files a claim, or takes any other
action, in any such suit, action or proceeding, or (2) otherwise commences any Proceeding
in that other jurisdiction as the result of that other suit, action or proceeding having
commenced in that other jurisdiction.”

22

 

     11. Role of Agent. Each party agrees and acknowledges that (i) J.P. Morgan
Securities Inc., an affiliate of Dealer (“JPMSI”), has acted solely as agent and not as principal
with respect to this Transaction and (ii) JPMSI has no obligation or liability, by way of guaranty,
endorsement or otherwise, in any manner in respect of this Transaction (including, if applicable,
in respect of the settlement thereof). Each party agrees it will look solely to the other party (or
any guarantor in respect thereof) for performance of such other party’s obligations under this
Transaction.

23

 

     Please confirm that the foregoing correctly sets forth the terms of our agreement by executing
this Confirmation and returning it to EDG Confirmation Group, J.P. Morgan Securities Inc., 277 Park
Avenue, 11th Floor, New York, NY 10172-3401, or by fax to (212) 622 8519.

	 	 	 	 	 
	 	Very truly yours,

J.P. Morgan Securities Inc., as agent for 

JPMorgan Chase Bank, National Association

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	Name: 	 
	 

Accepted and confirmed

as of the Trade Date:

	 	 	 	 	 
	TELEFLEX INCORPORATED

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

JPMorgan Chase Bank, National Association

Organised under the laws of the United States as a National Banking Association

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

 

Annex A

For each Component of the Transaction, the Number of Warrants and Expiration Date is set forth
below.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Component Number	 	Number of Warrants	 	Expiration Date

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