Document:

DOMESTIC SECURITY AGREEMENT, DATED APRIL 27, 2006

 Exhibit 10.5 
 EXECUTION COPY 
 DOMESTIC SECURITY AGREEMENT 
 Dated April 27, 2006 
 From 

The Grantors referred to herein 
 as Grantors 
 To 
 MORGAN STANLEY & CO. INCORPORATED 
 as Collateral Agent 
 Domestic Security Agreement 

 T A B L E O F C O N T
E N T S 
  

			
	 	  	Page
	 SECTION 1. Grant of Security
	  	2
		
	 SECTION 2. Security for Obligations
	  	6
		
	 SECTION 3. Grantors Remain Liable
	  	6
		
	 SECTION 4. Delivery and Control of Security Collateral
	  	6
		
	 SECTION 5. Maintaining the Collateral Account; Pledged Deposit Accounts
	  	8
		
	 SECTION 6. Investing of Amounts in the Collateral Account
	  	8
		
	 SECTION 7. Release of Amounts
	  	8
		
	 SECTION 8. Representations and Warranties
	  	8
		
	 SECTION 9. Further Assurances
	  	12
		
	 SECTION 10. As to Equipment and Inventory
	  	12
		
	 SECTION 11. Insurance
	  	12
		
	 SECTION 12. Post-Closing Changes
	  	13
		
	 SECTION 13. As to Intellectual Property Collateral
	  	13
		
	 SECTION 14. Voting Rights; Dividends; Etc.
	  	14
		
	 SECTION 15. As to the Assigned Agreements
	  	15
		
	 SECTION 16. As to Letter-of-Credit Rights
	  	16
		
	 SECTION 17. Commercial Tort Claims
	  	16
		
	 SECTION 18. Transfers and Other Liens; Additional Shares
	  	17
		
	 SECTION 19. Collateral Agent Appointed Attorney in Fact
	  	17
		
	 SECTION 20. Collateral Agent May Perform
	  	17
		
	 SECTION 21. The Collateral Agent’s Duties
	  	17
		
	 SECTION 22. Remedies
	  	18
		
	 SECTION 23. Indemnity and Expenses
	  	19
		
	 SECTION 24. Amendments; Waivers; Additional Grantors; Etc.
	  	20

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	 SECTION 25. Notices, Etc.
	  	20
		
	 SECTION 26. Continuing Security Interest; Assignments under the Credit Agreement
	  	21
		
	 SECTION 27. Release; Termination
	  	21
		
	 SECTION 28. Execution in Counterparts
	  	21
		
	 SECTION 29. Governing Law
	  	21

  

					
	 Schedules
	 		 	
			
	 Schedule I
	 	-	 	Investment Property
	 Schedule II
	 	-	 	Pledged Deposit Accounts
	 Schedule III
	 	-	 	Securities Accounts
	 Schedule IV
	 	-	 	Commodities Accounts
	 Schedule V
	 	-	 	Assigned Agreements
	 Schedule VI
	 	-	 	Intellectual Property
	 Schedule VII
	 	-	 	Commercial Tort Claims
	 Schedule VIII
	 	-	 	Location, Chief Executive Office, Type of Organization, Jurisdiction of Organization and Organizational Identification Number
	 Schedule IX
	 	-	 	Changes in Name, Location, Etc.
	 Schedule X
	 	-	 	Locations of Equipment and Inventory
	 Schedule XI
	 	-	 	Letters of Credit
	 Schedule XII
	 	-	 	Bilateral Obligations

  

					
	 Exhibits
	 		  	
			
	 Exhibit A
	 	-	  	Form of Consent and Agreement
	 Exhibit B
	 	-	  	Form of Copyright Security Agreement
	 Exhibit C
	 	-	  	Form of Patent Security Agreement
	 Exhibit D
	 	-	  	Form of Trademark Security Agreement
	 Exhibit E
	 	-	  	Form of Domestic Security Agreement Supplement

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 DOMESTIC SECURITY AGREEMENT 
 DOMESTIC SECURITY AGREEMENT dated April 27, 2006 (this “Agreement”) made by SENSATA TECHNOLOGIES FINANCE COMPANY, LLC, a Delaware
limited liability company (the “US Borrower”), and the other Persons listed on the signature pages hereof (together with the US Borrower, the “Grantors”), to Morgan Stanley & Co. Incorporated, as collateral
agent (together with any successor collateral agent appointed pursuant to Article 9 of the Credit Agreement referred to below, the “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred
to below). 
 PRELIMINARY STATEMENTS 
 The US Borrower, SENSATA TECHNOLOGIES B.V., a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands (the “BV
Borrower” and together with the US Borrower, the “Borrowers”), and SENSATA TECHNOLOGIES INTERMEDIATE HOLDING B.V., a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid)
incorporated under the laws of the Netherlands, have entered into a Credit Agreement dated as of April 27, 2006 (such agreement, as it may hereafter be amended, amended and restated, supplemented or otherwise modified from time to time,
being the “Credit Agreement”) with the Guarantors (as defined in the Credit Agreement), the Lenders (as defined in the Credit Agreement), the Initial L/C Issuer (as defined in the Credit Agreement), the Initial Swing Line Lender (as
defined in the Credit Agreement) and the Administrative Agent (as defined in the Credit Agreement). 
 The Borrowers and their
Subsidiaries have entered into or may from time to time enter into lines of credit (committed or uncommitted) and other similar arrangements (the “Bilateral Obligations”) with Lenders or their Affiliates and certain other financial
institutions as initially set forth on Schedule XII hereto and as such schedule may be amended from time to time upon written notice by the Borrowers to the applicable Lenders or Affiliates and certain other financial institutions (each, in such
capacity, a “Bilateral Provider”). 
 Each Grantor is the owner of the shares of stock or other Equity Interests (as
defined in the Credit Agreement) (the “Initial Pledged Equity”) set forth opposite such Grantor’s name on and as otherwise described in Part I of Schedule I hereto and issued by the Persons named therein and of the indebtedness
(the “Initial Pledged Debt”) set forth opposite such Grantor’s name on and as otherwise described in Part II of Schedule I hereto and issued by the obligors named therein. 
 Each Grantor is the owner of the deposit accounts (the “Pledged Deposit Accounts”) set forth opposite such Grantor’s name on
Schedule II hereto. 
 Each Grantor is the owner of the securities accounts (the “Securities Accounts”) set forth opposite
such Grantor’s name on Schedule III hereto. 
 Each Grantor has rights in and to all commodity contracts (the “Pledged Commodity
Contracts”) carried from time to time in each such Grantor’s commodities accounts (the “Commodities Accounts”) set forth opposite such Grantor’s name on Schedule IV hereto. 
 The US Borrower will be the owner of an account to be opened at the request of the Collateral Agent (the “Collateral Account”).

 It is a condition precedent to the making of Loans by the Lenders and the issuance of Letters of Credit by the L/C Issuer under the Credit
Agreement and the entry into Secured Hedge Agreements by the Hedge Banks from time to time that the Grantors shall have granted the security interest contemplated by this Agreement. Each Grantor will derive substantial direct and indirect benefit
from the transactions contemplated by the Loan Documents and from each Bilateral Provider’s Bilateral Obligations. 
 Domestic Security
Agreement 

 Terms defined in the Credit Agreement and not otherwise defined in this Agreement are used in this
Agreement as defined in the Credit Agreement. Further, unless otherwise defined in this Agreement or in the Credit Agreement, terms defined in Article 8 or 9 of the UCC (as defined below) are used in this Agreement as such terms are defined in such
Article 8 or 9. “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if perfection or the effect of perfection or non-perfection or the priority of the security interest in
any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for
purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority. 
 NOW, THEREFORE, in
consideration of the premises and in order to induce (i) the Lenders to make Loans and issue Letters of Credit under the Credit Agreement, (ii) each Bilateral Provider to provide or continue to provide Bilateral Obligations from time to
time and (iii) the Hedge Banks to enter into Secured Hedge Agreements from time to time, each Grantor hereby agrees with the Collateral Agent for the ratable benefit of the Secured Parties as follows: 
 SECTION 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security
interest in such Grantor’s right, title and interest in and to the following, in each case, as to each type of property described below, whether now owned or hereafter acquired by such Grantor, wherever located, and whether now or hereafter
existing or arising (collectively, the “Collateral”): 
 (a) all equipment in all of its forms, including, without
limitation, all machinery, tools, motor vehicles, vessels, aircraft, furniture and fixtures, and all parts thereof and all accessions thereto, including, without limitation, computer programs and supporting information that constitute equipment
within the meaning of the UCC (any and all such property being the “Equipment”); 
 (b) all inventory in all of its forms,
including, without limitation, (i) all raw materials, work in process, finished goods and materials used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor has an interest in mass
or a joint or other interest or right of any kind (including, without limitation, goods in which such Grantor has an interest or right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by such Grantor), and
all accessions thereto and products thereof and documents therefor, including, without limitation, computer programs and supporting information that constitute inventory within the meaning of the UCC (any and all such property being the
“Inventory”); 
 (c) all accounts (including, without limitation, health-care-insurance receivables), chattel paper
(including, without limitation, tangible chattel paper and electronic chattel paper), instruments (including, without limitation, promissory notes), deposit accounts, letter-of-credit rights, general intangibles (including, without limitation,
payment intangibles) and other obligations of any kind, whether or not arising out of or in connection with the sale or lease of goods or the rendering of services and whether or not earned by performance, and all rights now or hereafter existing in
and to all supporting obligations and in and to all security agreements, mortgages, Liens, leases, letters of credit and other contracts securing or otherwise relating to the foregoing property (any and all of such accounts, chattel paper,
instruments, deposit accounts, letter-of-credit rights, general intangibles and other obligations, to the extent not referred to in subsection (d), (e) or (f) below, being the “Receivables,” and any and all such supporting
obligations, security agreements, mortgages, Liens, leases, letters of credit and other contracts being the “Related Contracts”); 
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 (d) the following (collectively, the “Security Collateral”): 
 (i) the Initial Pledged Equity and the certificates, if any, representing the Initial Pledged Equity, and all dividends, distributions,
return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Equity and all warrants, rights or options issued thereon or
with respect thereto; 
 (ii) the Initial Pledged Debt and the instruments, if any, evidencing the Initial Pledged Debt, and
all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Debt; 
 (iii) all additional shares of stock and other Equity Interests from time to time acquired by such Grantor in any manner (such shares and
other Equity Interests, together with the Initial Pledged Equity, being the “Pledged Equity”), and the certificates, if any, representing such additional shares or other Equity Interests, and all dividends, distributions, return of
capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares or other Equity Interests and all warrants, rights or options issued thereon or
with respect thereto; provided, however, that Security Collateral shall not include any Equity Interest in any Foreign Subsidiary that is owned or otherwise held by any Grantor which, when aggregated with all of the other Equity Interests in
such Person pledged by such Grantor and the other Grantors, would result in more than 66% of the Equity Interests (on a fully diluted basis) in such Person entitled to vote (within the meaning of Treasury Regulation Section 1.956-2(c)(2)
promulgated under the Internal Revenue Code) being pledged to the Collateral Agent, on behalf of the Secured Parties, under this Agreement, the other Collateral Documents or otherwise (although Security Collateral shall include all of the Equity
Interests in such Person not entitled to vote (within the meaning of Treasury Regulation Section 1.956-2(c)(2) promulgated under the Internal Revenue Code)); provided that if, as a result of any change in the tax laws of the United
States of America after the date of this Agreement, the pledge by such Grantor of any additional Equity Interests in any such Person to the Collateral Agent, on behalf of the Secured Parties, under this Agreement or any of the other Collateral
Documents would not result in an increase in the net consolidated tax liabilities of any such Grantor, then, promptly after the change in such laws, all such additional Equity Interests shall be included in Security Collateral; 
 (iv) all additional indebtedness from time to time owed to such Grantor (such indebtedness, together with the Initial Pledged Debt, being
the “Pledged Debt”) and the instruments, if any, evidencing such indebtedness, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for
any or all of such indebtedness; 
 (v) the Securities Accounts, the Commodities Accounts, all Pledged Commodity Contracts
from time to time carried in the Commodities Accounts, all security entitlements with respect to all financial assets from time to time credited to the Securities Accounts or the Commodities Accounts, and all financial assets, and all dividends,
distributions, return of capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Pledged Commodity Contracts, security entitlements
or financial assets and all warrants, rights or options issued thereon or with respect thereto; and 
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 (vi) all other investment property (including, without limitation, all
(A) securities, whether certificated or uncertificated, (B) security entitlements, (C) securities accounts, (D) commodity contracts and (E) commodity accounts) in which such Grantor has now, or acquires from time to time
hereafter, any right, title or interest in any manner, and the certificates or instruments, if any, representing or evidencing such investment property, and all dividends, distributions, return of capital, interest, cash, instruments and other
property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such investment property and all warrants, rights or options issued thereon or with respect thereto; 
 (e) each of the agreements listed on Schedule V hereto and each Secured Hedge Agreement to which such Grantor is now or may hereafter become a party, in
each case as such agreements may be amended, amended and restated, supplemented or otherwise modified from time to time (collectively, the “Assigned Agreements”), including, without limitation, (i) all rights of such Grantor to
receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Assigned Agreements, (iii) claims
of such Grantor for damages arising out of or for breach of or default under the Assigned Agreements and (iv) the right of such Grantor to terminate the Assigned Agreements, to perform thereunder and to compel performance and otherwise exercise
all remedies thereunder (all such Collateral being the “Agreement Collateral”); 
 (f) the following (collectively, the
“Account Collateral”): 
 (i) the Pledged Deposit Accounts, the Collateral Account and all funds and
financial assets from time to time credited thereto (including, without limitation, all Cash Equivalents), and all certificates and instruments, if any, from time to time representing or evidencing the Pledged Deposit Accounts or the Collateral
Account; 
 (ii) all promissory notes, certificates of deposit, checks and other instruments from time to time delivered to or
otherwise possessed by the Collateral Agent for or on behalf of such Grantor in substitution for or in addition to any or all of the then existing Account Collateral; and 
 (iii) all interest, dividends, distributions, cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the then existing Account Collateral; and 
 (g) the following (collectively, the
“Intellectual Property Collateral”): 
 (i) all patents, patent applications, utility models and statutory
invention registrations, all inventions claimed or disclosed therein and all improvements thereto (“Patents”); 
 (ii) all trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and other source identifiers, whether registered or unregistered (provided that no security interest shall
be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark
applications under applicable federal law), together, in each case, with the goodwill symbolized thereby (“Trademarks”); 
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 (iii) all copyrights, including, without limitation, copyrights in Computer Software (as
hereinafter defined), internet web sites and the content thereof, whether registered or unregistered (“Copyrights”); 
 (iv) all computer software, programs and databases (including, without limitation, source code, object code and all related applications and data files), firmware and documentation and materials relating thereto,
together with any and all maintenance rights, service rights, programming rights, hosting rights, test rights, improvement rights, renewal rights and indemnification rights and any substitutions, replacements, improvements, error corrections,
updates and new versions of any of the foregoing (“Computer Software”); 
 (v) all confidential and
proprietary information, including, without limitation, know-how, trade secrets, manufacturing and production processes and techniques, inventions, research and development information, databases and data, including, without limitation, technical
data, financial, marketing and business data, pricing and cost information, business and marketing plans and customer and supplier lists and information (collectively, “Trade Secrets”), and all other intellectual, industrial and
intangible property of any type, including, without limitation, industrial designs and mask works; 
 (vi) all registrations
and applications for registration for any of the foregoing, including, without limitation, those registrations and applications for registration set forth in Schedule IV hereto, together with all reissues, divisions, continuations,
continuations-in-part, extensions, renewals and reexaminations thereof; 
 (vii) all tangible embodiments of the foregoing,
all rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto; 

(viii) all agreements, permits, consents, orders and franchises relating to the license, development, use or disclosure of any of the
foregoing to which such Grantor, now or hereafter, is a party or a beneficiary, including, without limitation, the agreements set forth in Schedule IV hereto (all of the foregoing collectively referred to as “IP Agreements”); and

 (ix) any and all claims for damages and injunctive relief for past, present and future infringement, dilution,
misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, such damages; 
 (h) the commercial tort claims described in Schedule VII hereto (together with any commercial tort claims as to which the Grantors have complied with the
requirements of Section 17, the “Commercial Tort Claims Collateral”); 
 (i) all books and records (including,
without limitation, customer lists, credit files, printouts and other computer output materials and records) of such Grantor pertaining to any of the Collateral; and 
 (j) all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the Collateral (including, without
limitation, proceeds, collateral and supporting obligations that constitute property of the types described in subsections (a) through (i) of this Section 1) and, to the extent not otherwise included, all (A) payments
under insurance (whether or not the Collateral Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, and (B) cash.

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 Notwithstanding anything herein to the contrary, this Agreement shall not constitute a grant of security
interest in (and the term “Collateral” shall be deemed not to include) (A) any joint venture, lease, license, contract, property rights or agreement to which any Grantor is a party or any of its rights or interests thereunder, to the
extent that and for so long as (but only for so long as), the grant of such security interest shall (1) constitute or result in the abandonment, invalidation or unenforceability under applicable law of any right, title or interest of any
Grantor therein or (2) constitute or result in a material breach or termination pursuant to the terms of, or a material default, under, any such joint venture, lease, license, contract, property rights or agreement (other than to the extent
that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions)); provided that such Grantor shall use commercially reasonable efforts to obtain consents
necessary for the granting of such Lien on such property hereunder; or (B) any Equipment owned by any Grantor that is subject to a purchase money Lien or a Capitalized Lease (as defined in the Credit Agreement) permitted pursuant to the Credit
Agreement if the contract or other agreement in which such Lien is granted (or in the documentation providing for such Capitalized Lease) prohibits the creation of any other Lien on such Equipment, but only, in each case, to the extent and for so
long as (but only for so long as), the Indebtedness (as defined in the Credit Agreement) secured by the applicable Lien or the applicable Capitalized Lease has not been repaid in full or the applicable prohibition has not otherwise been removed or
terminated; provided that any proceeds, substitutions or replacements of any property included in subclauses (A) and (B) above shall not be excluded (unless such proceeds, substitutions or replacements would itself constitute
property excluded under subclause (A) or (B)). 
 SECTION 2. Security for Obligations. This Agreement secures, in the case of
each Grantor, the payment of all Obligations, Cash Management Obligations and Bilateral Obligations of such Grantor now or hereafter existing under the Loan Documents, whether direct or indirect, absolute or contingent, and whether for principal,
reimbursement obligations, interest, fees, premiums, penalties, indemnifications, contract causes of action, costs, expenses or otherwise (all such Obligations being the “Secured Obligations”). Without limiting the generality of the
foregoing, this Agreement secures, as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by such Grantor to any Secured Party under the Loan Documents, but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. Notwithstanding anything in this Agreement or the Credit Agreement to the contrary, (i) the aggregate principal
amount of all Bilateral Obligations secured hereby shall not exceed $40,000,000 and (ii) to the extent that Bilateral Obligations are cash collateralized or otherwise secured (other than pursuant to this Agreement), such Bilateral Obligations
shall not be secured hereby. 
 SECTION 3. Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each
Grantor shall remain liable under the contracts and agreements included in such Grantor’s Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been
executed, (b) the exercise by the Collateral Agent of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) no Secured Party
shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any
Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. 
 SECTION 4. Delivery and
Control of Security Collateral. (a) All certificates or instruments representing or evidencing Security Collateral in excess of $2,500,000 in principal amount individually shall be delivered to and held by or on behalf of the Collateral
Agent pursuant hereto and shall be in 
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 suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in
blank, all in form and substance reasonably satisfactory to the Collateral Agent. Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent shall have the right, at any time, to (i) transfer to or to register
in the name of the Collateral Agent or any of its nominees any or all of the Security Collateral and (ii) exchange certificates or instruments representing or evidencing Security Collateral for certificates or instruments of smaller or larger
denominations; provided that the Collateral Agent provides written notice to the applicable Grantor. 
 (b) Upon the occurrence and
during the continuance of an Event of Default, promptly upon the request of the Collateral Agent, with respect to any Security Collateral that constitutes an uncertificated security, the relevant Grantor will use commercially reasonable efforts to
cause the issuer thereof either (i) to register the Collateral Agent as the registered owner of such security or (ii) to agree with such Grantor and the Collateral Agent that upon receipt of a notice of exclusive control following the
occurrence and during the continuance of an Event of Default, such issuer will comply with instructions with respect to such security originated by the Collateral Agent without further consent of such Grantor, such agreement to be in form and
substance reasonably satisfactory to the Collateral Agent (such agreement being an “Uncertificated Security Control Agreement”). 
 (c) Upon the occurrence and during the continuance of an Event of Default, promptly upon the request of the Collateral Agent, with respect to the Securities Accounts and any Security Collateral that constitutes a security entitlement with
an aggregate value in excess of $2,500,000 and as to which the financial institution acting as Collateral Agent hereunder is not the securities intermediary, the relevant Grantor will use commercially reasonable efforts to cause the securities
intermediary with respect to such Account or security entitlement either (i) to identify in its records the Collateral Agent as the entitlement holder thereof or (ii) to agree with such Grantor and the Collateral Agent that such securities
intermediary will comply with entitlement orders originated by the Collateral Agent without further consent of such Grantor, such agreement to be in form and substance reasonably satisfactory to the Collateral Agent (a “Securities Account
Control Agreement”). 
 (d) Upon the occurrence and during the continuance of an Event of Default, promptly upon the request of the
Collateral Agent, with respect to the Commodities Accounts and any Security Collateral that constitutes a commodity contract with an aggregate value in excess of $2,500,000 at any time, such Grantor will use commercially reasonable efforts to cause
the commodity intermediary with respect to such Account or commodity contract either (i) to identify in its records the Collateral Agent as the beneficiary thereof or (ii) to agree in an agreement with such Grantor and the Collateral Agent
that such commodity intermediary will apply any value distributed on account of such commodity contract as directed by the Collateral Agent without further consent of such Grantor, such authenticated record to be in form and substance reasonably
satisfactory to the Collateral Agent (such agreement being a “Commodity Account Control Agreement”). 
 (e) Upon the
occurrence and during the continuance of an Event of Default, the Collateral Agent shall have the right to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Security Collateral, subject only to
the revocable rights specified in Section 14(a). In addition, the Collateral Agent shall have the right upon the occurrence and during the continuance of an Event of Default to convert Security Collateral consisting of financial assets
held directly by the Collateral Agent to Security Collateral consisting of financial assets credited to one or more of the applicable Securities Accounts or the Collateral Account. 
 (f) Upon the request of the Collateral Agent upon the occurrence and during the continuance of an Event of Default, each Grantor will notify each issuer
of Security Collateral granted by it hereunder that such Security Collateral is subject to the security interest granted hereunder. 
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Security Agreement 
  

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 SECTION 5. Maintaining the Collateral Account; Pledged Deposit Accounts. So long as any Loan or
any other Obligation of any Loan Party under any Loan Document shall remain unpaid (other than contingent indemnification obligations not yet accrued and payable and which by their terms survive termination of the Loan Document), any Letter of
Credit shall be outstanding, or any Lender shall have any Commitment; provided that Letters of Credit shall be deemed no longer outstanding hereunder in accordance with the Cash Collateralization or back-to-back letter of credit provisions
set forth in Section 2.03(g) of the Credit Agreement: 
 (a) Each Grantor will maintain the Collateral Account and the Pledged
Deposit Accounts only with the financial institution acting as Collateral Agent hereunder or with a bank (a “Pledged Account Bank”) that has agreed with such Grantor and the Collateral Agent to comply, upon the occurrence and during
the continuance of an Event of Default, with instructions originated by the Collateral Agent directing the disposition of funds in such deposit account without the further consent of such Grantor, such agreement to be in form and substance
reasonably satisfactory to the Collateral Agent (a “Deposit Account Control Agreement”); provided, however, this Section 5(a) shall not apply to deposit accounts (i) to the extent the average daily balance,
measurable over a trailing 30-day period, on deposit in each such deposit account does not exceed $5,000,000 at any time or (ii) operated solely as a payroll account. Each Grantor agrees that at no time shall the average daily balance,
measurable over a trailing 30-day period, on deposit in all deposit accounts for which there is not in effect a Deposit Account Control Agreement exceed $15,000,000. 
 (b) The Collateral Agent may, at any time and without notice to, or consent from, the Grantor, transfer, or direct the transfer of, funds from the Pledged Deposit Accounts or the Collateral Account to satisfy the
Grantor’s Obligations under the Loan Documents if an Event of Default shall have occurred and be continuing. 
 SECTION 6. Investing
of Amounts in the Collateral Account. During periods when the Collateral Agent exercises sole control over the Collateral Account, the Collateral Agent shall, subject to the provisions of Sections 5, 7 and 22:
(a) from time to time, invest, or direct the applicable Pledged Account Bank to invest, amounts received with respect to the Collateral Account in such Cash Equivalents credited to the Collateral Account as the Borrower may select and the
Collateral Agent may approve, (b) from time to time, invest interest paid on the Cash Equivalents referred to in subsection (a) above and reinvest other proceeds of any such Cash Equivalents that may mature or be sold, in each case in such
Cash Equivalents credited in the same manner, (c) deposit interest and proceeds that are not invested or reinvested in Cash Equivalents as provided above in the Collateral Account and (d) have the right to exchange, or direct the
applicable Pledged Account Bank to exchange, such Cash Equivalents for similar Cash Equivalents of smaller or larger determinations, or for other Cash Equivalents, credited to the Collateral Account. 
 SECTION 7. Release of Amounts. To the extent that (i) any proceeds were deposited in the Collateral Account or a Pledged Deposit Account
during the continuance of an Event of Default and (ii) there are remaining proceeds in such Collateral Account or Pledged Deposit Account upon the termination of such Event of Default, so long as no Event of Default shall have occurred and be
continuing, the Collateral Agent will pay and release, or direct the applicable Pledged Account Bank to pay and release, to the applicable Grantor or at its order or, at the request of such Grantor, to the Collateral Agent to be applied to the
Obligations of the Grantors under the Loan Documents, such amount, if any, as is then on deposit in such Collateral Account or Pledged Deposit Account, in each case to the extent permitted to be released under the terms of the Credit Agreement.

 SECTION 8. Representations and Warranties. Each Grantor represents and warrants as follows: 
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 (a) Such Grantor’s exact legal name, as defined in Section 9-503(a) of the UCC, is correctly
set forth in Schedule VIII hereto. Such Grantor’s location, chief executive office, type of organization, jurisdiction of organization and organizational identification number, if any, is set forth in Schedule VIII hereto and is accurate in all
material respects. Within the five years preceding the date hereof, such Grantor has not changed its legal name, location (as defined in the UCC), chief executive office, type of organization, jurisdiction of organization or organizational
identification number, if any, from those set forth in Schedule VIII hereto except as set forth in Schedule IX hereto. 
 (b) Such
Grantor is the legal and beneficial owner of the Collateral granted or purported to be granted by it free and clear of any Lien, claim, option or right of others, except for the security interest created under this Agreement or otherwise permitted
under the Credit Agreement. No effective financing statement or other instrument similar in effect covering all or any part of the Collateral or listing such Grantor as debtor is on file in any relevant recording office, except such as may have been
filed in favor of the Collateral Agent relating to the Loan Documents or as otherwise permitted under the Credit Agreement. 
 (c) All of the
Equipment and Inventory (other than Equipment and Inventory that is (i) located at customer or supplier locations in the normal course of business or (ii) in transit or out for repair or further process) of such Grantor are located at the
places specified therefor in Schedule X hereto or at another location as to which such Grantor has complied with the requirements of Section 10(a) or otherwise have an aggregate book value of no more than $10,000,000. Within the five
years preceding the date hereof, such Grantor has not changed the location of its Equipment or Inventory except as set forth in Schedule X hereto. Such Grantor has exclusive possession and control of its Equipment and Inventory (other than Equipment
and Inventory that is located at customer or supplier locations in the normal course of business), other than Inventory stored at any leased premises or warehouse for which a landlord’s or warehouseman’s agreement, in form and substance
satisfactory to the Collateral Agent, is in effect. 
 (d) None of the Receivables or Agreement Collateral is evidenced by a promissory note
or other instrument in excess of (i) $5,000,000 individually and (ii) $10,000,000 in the aggregate, that has not been delivered to the Collateral Agent. 
 (e) If such Grantor is an issuer of Security Collateral, such Grantor confirms that it has received notice of the security interest granted hereunder. 
 (f) The Pledged Equity pledged by such Grantor hereunder has been duly authorized and validly issued and is fully paid and non-assessable (to the extent
such term is applicable). The Pledged Debt pledged by such Grantor hereunder has been duly authorized, authenticated or issued and delivered, is the legal, valid and binding obligation of the issuers thereof, is not in default and, to the extent
applicable, is evidenced by one or more promissory notes (which promissory notes have been delivered to the Collateral Agent). 
 (g) The
Initial Pledged Equity pledged by such Grantor constitutes the percentage of the issued and outstanding Equity Interests of the issuers thereof indicated on Schedule I hereto. The Initial Pledged Debt constitutes all of the outstanding indebtedness
in excess of (i) $2,500,000 individually and (ii) $5,000,000 in the aggregate, owed to such Grantor by the issuers thereof and is outstanding in the principal amount indicated on Schedule I hereto. 
 (h) Such Grantor has no material investment property, other than the material investment property listed on Schedule I hereto and additional investment
property as to which such Grantor has complied with the requirements of Section 4. 
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 (i) The Assigned Agreements to which such Grantor is a party, true and complete copies of which (other
than the Secured Hedge Agreements) have been furnished to the Collateral Agent, have been duly authorized, executed and delivered by all parties thereto, have not been amended, amended and restated, supplemented or otherwise modified, other than in
accordance with their terms, are in full force and effect and are binding upon and enforceable against all parties thereto in accordance with their terms. There exists no material default under any Assigned Agreement to which such Grantor is a party
by any party thereto. Each party to the Assigned Agreements listed on Schedule V hereto to which such Grantor is a party other than the Grantors has executed and delivered to such Grantor a consent, in substantially the form of Exhibit A hereto or
otherwise in form and substance reasonably satisfactory to the Collateral Agent, to the grant of a security interest in such Assigned Agreement to the Collateral Agent pursuant to this Agreement. 
 (j) Such Grantor has no deposit accounts to the extent that the average daily balance, measurable over a 30-day trailing period, on deposit in each such
deposit account does not exceed $5,000,000 other than the Collateral Account, Pledged Deposit Accounts listed on Schedule II hereto and additional Pledged Deposit Accounts as to which such Grantor has complied with the applicable requirements of
Section 5. 
 (k) Such Grantor is not a beneficiary or assignee under any letter of credit in a face amount greater than
$5,000,000 other than the letters of credit described in Schedule XI hereto and additional letters of credit as to which such Grantor has complied in all material respects with the requirements of Section 16. 
 (l) This Agreement creates in favor of the Collateral Agent for the benefit of the Secured Parties a valid first priority security interest, except as
otherwise provided for under the Loan Documents, in the Collateral granted by such Grantor, securing the payment of the Secured Obligations. Each Grantor has authorized the Collateral Agent to file financing and continuation statements under the UCC
and record Intellectual Property Security Agreements referred to in Section 13(f) with the U.S. Patent and Trademark Office and the U.S. Copyright Office necessary to perfect a first priority security interest in the respective
Collateral, as applicable, subject to certain exceptions contained herein and in the Credit Agreement. 
 (m) No authorization or approval or
other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required (other than as otherwise provided for under the Credit Agreement or this Agreement) for (i) the grant by such
Grantor of the security interest granted hereunder or for the execution, delivery or performance of this Agreement by such Grantor, (ii) the perfection (to the extent required hereunder and excluding any security interest in cash) or
maintenance of the security interest created hereunder (including the first priority nature of such security interest), except for the filing of financing and continuation statements under the UCC, which financing statements have been duly filed and
are in full force and effect, the recordation of the Intellectual Property Security Agreements referred to in Section 13(f) with the U.S. Patent and Trademark Office and the U.S. Copyright Office, any filings outside the United States
required to perfect a security interest in Intellectual Property Collateral, and the actions described in Section 4 with respect to the Security Collateral, which actions have been taken and are in full force and effect, or
(iii) the exercise by the Collateral Agent of its voting or other rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement, except as may be required in connection with the disposition of any
portion of the Security Collateral by laws affecting the offering and sale of securities generally. 
 (n) The Inventory that has been
produced or distributed by such Grantor has been produced in material compliance with all requirements of applicable Law, including, without limitation, the Fair Labor Standards Act. 
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 (o) As to itself and its Intellectual Property Collateral: 
 (i) Except as could not be reasonably expected to have a Material Adverse Effect, the operation of such Grantor’s business as
currently conducted and the use of the Material Intellectual Property Collateral (as defined below) in connection therewith do not infringe, misappropriate, dilute, misuse or otherwise violate the intellectual property rights of any third party.

 (ii) Such Grantor is the exclusive owner or joint owner of all right, title and interest in and to the Material
Intellectual Property Collateral, or is entitled to use all Material Intellectual Property Collateral subject only to the terms of the related IP Agreements. 
 (iii) The Intellectual Property Collateral set forth on Schedule VI hereto includes all patents, patent applications, domain names,
trademark registrations and applications, copyright registrations and applications that are material to the business of such Grantor and material IP Agreements owned by such Grantor as of the date hereof which are reasonably necessary to the
operation of such Grantor’s respective business. 
 (iv) The Material Intellectual Property Collateral is subsisting and
has not been adjudged invalid or unenforceable in whole or part, and to the best knowledge of such Grantor, is valid and enforceable. 
 (v) Except as set forth on Schedule VI hereto, such Grantor has not granted any material license, release, covenant not to sue, non-assertion assurance, or other material right to any Person with respect to any part
of the Material Intellectual Property Collateral (other than (A) licenses granted to such Grantor’s customers in the ordinary course of business and (B) patent cross-licenses entered into in the ordinary course of such Grantor’s
patent licensing business), the effect of which would create a material impairment of such Grantor’s use of such Material Intellectual Property Collateral as intended in the operation of its respective business. The consummation of the
transactions contemplated by the Transaction Documents will not result in the termination or impairment of any of the Material Intellectual Property Collateral. 
 (vi) With respect to each material IP Agreement set forth on Schedule VI hereto, except as could not be reasonably expected to have a
Material Adverse Effect: (A) such IP Agreement is valid and binding and in full force and effect and represents the entire agreement between the respective parties thereto with respect to the subject matter thereof; (B) such IP Agreement
will not cease to be valid and binding and in full force and effect on terms identical to those currently in effect as a result of the rights and interest granted herein, nor will the grant of such rights and interest constitute a material breach or
default under such IP Agreement or otherwise give any party thereto a right to terminate such IP Agreement; (C) such Grantor has not received any notice of termination or cancellation under such IP Agreement; (D) such Grantor has not
received any notice of a breach or default under such IP Agreement, which breach or default has not been cured; and (E) neither such Grantor nor any other party to such IP Agreement is in breach or default thereof in any material respect, and
no event has occurred that, with notice or lapse of time or both, would constitute such a breach or default or permit termination, modification or acceleration under such IP Agreement. 
 (p) Such Grantor has no commercial tort claims in excess of $5,000,000 other than those listed in Schedule VII hereto and additional commercial tort
claims as to which such Grantor has complied with the requirements of Section 17. 
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 SECTION 9. Further Assurances. (a) Each Grantor agrees that from time to time, at the expense
of such Grantor, such Grantor will promptly execute and deliver, or otherwise authenticate, all further instruments and documents, and take all further commercially reasonable action that is necessary, or that the Collateral Agent may reasonably
request, in order to perfect and protect any pledge or security interest granted or purported to be granted by such Grantor hereunder or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any
Collateral of such Grantor. Each Grantor further agrees that it shall, at the expense of such Grantor, take any and all commercially reasonable actions necessary to defend title to the Collateral against all Persons and to defend the security
interest created hereunder and the priority thereof against any Lien prohibited under the Credit Agreement. 
 (b) Each Grantor hereby
authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, including, without limitation, one or more financing statements indicating that such financing statements cover all assets or all
personal property (or words of similar effect) of such Grantor, regardless of whether any particular asset described in such financing statements falls within the scope of the UCC or the granting clause of this Agreement. A photocopy or other
reproduction of this Agreement shall be sufficient as a financing statement where permitted by law. 
 (c) Each Grantor will furnish to the
Collateral Agent from time to time statements and schedules further identifying and describing the Collateral of such Grantor and such other reports in connection with such Collateral as the Collateral Agent may reasonably request, all in reasonable
detail. 
 (d) Upon notice by the Collateral Agent, the Borrower will furnish to the Collateral Agent on or prior to the fifth anniversary of
the date hereof (but not more than six months prior thereto), an opinion of counsel, from outside counsel reasonably satisfactory to the Collateral Agent, to the effect that all financing or continuation statements have been filed, and all other
action has been taken to perfect continuously from the date hereof the security interest granted hereunder. 
 (e) Notwithstanding anything
to the contrary in this Agreement or any other Collateral Document, this Agreement shall be subject to the provisions of Sections 6.12(e) or 6.12(c) and 6.12(e), as applicable, of the Credit Agreement. 
 SECTION 10. As to Equipment and Inventory. Each Grantor will keep its Equipment (other than Equipment that is located at a customer or supplier
location in the ordinary course of business) and Inventory (other than Inventory on consignment or sold in the ordinary course of business) at the places therefor specified in Section 8(c) or, upon 30 days’ prior written notice to
the Collateral Agent, at such other places designated by such Grantor in such notice. 
 (a) Each Grantor will cause its Equipment to be
maintained and preserved in accordance with Section 6.06 of the Credit Agreement. 
 (b) Each Grantor will pay promptly when due
all property and other material taxes, assessments and governmental charges or levies imposed upon, and all claims (including, without limitation, claims for labor, materials and supplies) against, its Equipment and Inventory, except to the extent
payment thereof is not required by Section 6.04 of the Credit Agreement. In producing its Inventory, each Grantor will comply with all requirements of applicable Law, including, without limitation, the Fair Labor Standards Act.

 SECTION 11. Insurance. Each Grantor will, at its own expense, maintain insurance as required by the terms of the Credit Agreement.
Each such policy shall in addition (i) name the Collateral Agent as 
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 loss payee or additional insured party, as applicable, thereunder (without any representation or warranty by or
obligation upon the Collateral Agent) as their interests may appear, (ii) provide that there shall be no recourse against the Collateral Agent for payment of premiums or other amounts with respect thereto and (iii) provide that at least 10
days’ prior written notice of cancellation or of lapse shall be given to the Collateral Agent by the insurer. Each Grantor will, if so reasonably requested by the Collateral Agent, deliver to the Collateral Agent original or duplicate policies
of such insurance. Reimbursement under any liability insurance maintained by any Grantor pursuant to this Section 11 may be paid directly to the Person who shall have incurred liability covered by such insurance. Any insurance proceeds
related to a loss involving damage to Equipment or Inventory shall be applied as set forth in the Credit Agreement. 
 SECTION 12.
Post-Closing Changes. Each Grantor agrees to promptly notify the Collateral Agent in writing of any change to its legal name, type of organization, jurisdiction of organization, organizational identification number (if any) or location from
those set forth in Schedule VIII hereto and shall take all action reasonably required by the Collateral Agent for the purposes of perfecting or protecting the security interest granted by this Agreement. Each Grantor will hold and preserve its
records relating to the Collateral, including, without limitation, the Assigned Agreements and Related Contracts, and will permit representatives of the Collateral Agent at any reasonable time during normal business hours to inspect and make
abstracts from such records and other documents, upon reasonable advance notice to such Grantor; provided that, excluding any such visits and inspections during the continuance of an Event of Default, only the Collateral Agent may exercise
rights under this Section 12 and the Collateral Agent shall not exercise such rights more often than one (1) time during any calendar year absent the existence of an Event of Default; provided further that, upon the occurrence and
during the continuance of an Event of Default, the Collateral Agent or any Secured Party (or any respective representative or independent contractor) may do any of the foregoing at the reasonable expense of such Grantor at any time during normal
business hours and upon reasonable advance notice. If any Grantor does not have an organizational identification number and later obtains one, within thirty (30) days, it will notify the Collateral Agent of such organizational identification
number. 
 SECTION 13. As to Intellectual Property Collateral. (a) With respect to each item of its Intellectual Property
Collateral that is material to the business of any Grantor (any such item of Intellectual Property Collateral being “Material Intellectual Property Collateral”), except to the extent failure to act could not reasonably be expected
to have a Material Adverse Effect, with respect to each item of its Material Intellectual Property Collateral, each Grantor agrees to take, at its expense, commercially reasonable actions that it determines are necessary in accordance with the
exercise of its business discretion, including, without limitation, register in the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other governmental authority, to (i) maintain the validity and enforceability of such
Material Intellectual Property Collateral and maintain such Material Intellectual Property Collateral in full force and effect, and (ii) pursue the registration and maintenance of each patent, trademark, or copyright registration or
application, now or hereafter included in such Material Intellectual Property Collateral of such Grantor, including, without limitation, the payment of required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and
Trademark Office, the U.S. Copyright Office or other governmental authorities, the filing of applications for renewal or extension, the filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the filing of divisional, continuation,
continuation-in-part, reissue and renewal applications or extensions, the payment of maintenance fees and the participation in interference, reexamination, opposition, cancellation, infringement and misappropriation proceedings. 
 (b) Except as could not be reasonably expected to have a Material Adverse Effect, no Grantor shall do or permit any act or knowingly omit to do any act
whereby any of its Material Intellectual Property Collateral may lapse, be terminated or become invalid or unenforceable or placed in the public domain (or, in case of a trade secret, lose its competitive value). 
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 (c) Except when failure to do so could not reasonably be expected to cause a Material Adverse Effect,
each Grantor shall take commercially reasonable actions that it determines are necessary in accordance with the exercise of its business discretion to preserve and protect each item of its Material Intellectual Property Collateral. 
 (d) With respect to its Material Intellectual Property, on the Closing Date or such later date as provided under the terms of the Credit Agreement or
which the Collateral Agent consents to in writing, each Grantor agrees to execute and deliver to the Collateral Agent, with respect to all Material Intellectual Property that is registered or with respect to which registration is pending (i) an
agreement, in substantially the form set forth in Exhibit B hereto or otherwise in form and substance reasonably satisfactory to the Collateral Agent (a “Copyright Security Agreement”), (ii) an agreement, in substantially the
form set forth in Exhibit C hereto or otherwise in form and substance reasonably satisfactory to the Collateral Agent (a “Patent Security Agreement”) and (iii) an agreement, in substantially the form set forth in Exhibit D
hereto or otherwise in form and substance reasonably satisfactory to the Collateral Agent (a “Trademark Security Agreement” and, together with each Copyright Security Agreement and each Patent Security Agreement, the
“Intellectual Property Security Agreements”), in each case for recording the security interest granted hereunder to the Collateral Agent in such Intellectual Property Collateral with the U.S. Patent and Trademark Office or the U.S.
Copyright Office, as applicable. 
 (e) Each Grantor agrees that should it obtain an ownership interest in any item of the type set forth in
Section 1(g) that is not on the date hereof a part of the Material Intellectual Property Collateral (“After-Acquired Material Intellectual Property”) (i) the provisions of this Agreement shall automatically apply
thereto, and (ii) any such After-Acquired Material Intellectual Property and, in the case of trademarks, the goodwill symbolized thereby, shall automatically become part of the Material Intellectual Property Collateral subject to the terms and
conditions of this Agreement with respect thereto. After the end of each fiscal quarter of the Borrower, as set forth in Section 6.14(b) of the Credit Agreement, each Grantor shall provide written notice to the Collateral Agent
identifying the After-Acquired Material Intellectual Property consisting of patents, patent applications, trademark registrations, trademark applications, copyright registrations, and copyright applications acquired during such fiscal quarter, and
such Grantor shall execute and deliver to the Collateral Agent with such written notice, or otherwise authenticate, an agreement in form and substance reasonably satisfactory to the Collateral Agent (an “IP Domestic Security Agreement
Supplement”) covering such After-Acquired Material Intellectual Property, which IP Domestic Security Agreement Supplement shall be recorded with the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other governmental
authorities necessary to perfect the security interest hereunder in such After-Acquired Material Intellectual Property. 
 SECTION 14.
Voting Rights; Dividends; Etc. (a) So long as no Event of Default shall have occurred and be continuing and the Collateral Agent has not given notice to the Borrower: 
 (i) Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of
such Grantor or any part thereof for any purpose; provided, however, that such Grantor will not exercise or refrain from exercising any such right if such action would have a material adverse effect on the value of the Security
Collateral or any part thereof or on the rights and remedies of the Collateral Agent or the other Secured Parties under this Agreement or the ability of the Collateral Agent or the other Secured Parties to exercise the same. 
 (ii) Each Grantor shall be entitled to receive and retain any and all dividends, interest and other distributions paid in respect of the
Security Collateral of such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Loan Documents; 
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 provided, however, that any and all dividends, interest and other distributions paid or
payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Security Collateral shall be, and shall be forthwith delivered to the Collateral Agent
to hold as Security Collateral and shall, if received by such Grantor, be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of such Grantor and be forthwith delivered to the Collateral Agent as
Security Collateral in the same form as so received (with any necessary indorsement). 
 (iii) The Collateral Agent will
execute and deliver (or cause to be executed and delivered) to each Grantor all such proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is
entitled to exercise pursuant to paragraph (i) above and to receive the dividends or interest payments that it is authorized to receive and retain pursuant to paragraph (ii) above. 
 (b) Upon the occurrence and during the continuance of an Event of Default and following notice from the Collateral Agent to the Borrower: 
 (i) All rights of each Grantor (x) to exercise or refrain from exercising the voting and other consensual rights that it would
otherwise be entitled to exercise pursuant to Section 14(a)(i) shall, upon notice to such Grantor by the Collateral Agent, cease and (y) to receive the dividends, interest and other distributions that it would otherwise be
authorized to receive and retain pursuant to Section 14(a)(ii) shall automatically cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from
exercising such voting and other consensual rights and to receive and hold as Security Collateral such dividends, interest and other distributions. 
 (ii) All dividends, interest and other distributions that are received by any Grantor contrary to the provisions of paragraph (i) of this Section 14(b) shall be received in trust for the benefit of
the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent as Security Collateral in the same form as so received (with any necessary indorsement). 
 SECTION 15. As to the Assigned Agreements. (a) For each Assigned Agreement listed on Schedule V hereto, each Grantor party to such Assigned
Agreement will use commercially reasonable efforts to cause each party to such Assigned Agreements other than a Grantor to execute and deliver a consent, to the extent such consent is required pursuant to the terms of the UCC, and in substantially
the form of Exhibit A hereto or otherwise in form and substance reasonably satisfactory to the Collateral Agent, granting a security interest in such Assigned Agreement to the Collateral Agent pursuant to this Agreement. 
 (b) Each Grantor will at its expense: 
 (i) perform and observe all terms and provisions of the Assigned Agreements to be performed or observed by it, maintain the Assigned Agreements to which it is a party in full force and effect, enforce the Assigned
Agreements to which it is a party in accordance with the terms thereof and take all such commercially reasonable action to such end as may be reasonably requested from time to time by the Collateral Agent; and 
 (ii) furnish to the Collateral Agent promptly upon receipt thereof copies of all material notices, requests and other documents received
by such Grantor under or pursuant to the Assigned Agreements to which it is a party, and from time to time (A) furnish to the Collateral 
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 Agent such information and reports regarding the Assigned Agreements and such other Collateral of such
Grantor as the Collateral Agent may reasonably request and (B) upon reasonable request of the Collateral Agent, make to each other party to any Assigned Agreement to which it is a party such demands and requests for information and reports or
for action as such Grantor is entitled to make thereunder. 
 (c) Each Grantor agrees that it will not, to the extent prohibited by the
Credit Agreement: 
 (i) cancel or terminate any Assigned Agreement to which it is a party or consent to or accept any
cancellation or termination thereof; 
 (ii) amend, amend and restate, supplement or otherwise modify any such Assigned
Agreement or give any consent, waiver or approval thereunder; 
 (iii) waive any default under or material breach of any such
Assigned Agreement; or 
 (iv) take any other action in connection with any such Assigned Agreement that would impair the
value of the interests or rights of such Grantor thereunder or that would impair the interests or rights of any Secured Party. 
 (d) Each
Grantor hereby consents on its behalf and on behalf of its Subsidiaries to the assignment and pledge to the Collateral Agent for benefit of the Secured Parties of each Assigned Agreement to which it is a party by any other Grantor hereunder.

 (e) Upon the occurrence and during the continuance of an Event of Default and the written request of the Collateral Agent, each Grantor
shall instruct each other party to each Assigned Agreement to which it is a party, that all payments due or to become due under or in connection with such Assigned Agreement shall be made directly to the Collateral Account or a Pledged Deposit
Account subject to a Deposit Account Control Agreement in form and substance reasonably satisfactory to the Collateral Agent. 
 (f) All
moneys received or collected pursuant to subsection (e) above shall be (i) released to the applicable Grantor on the terms set forth in Section 7 so long as no Event of Default shall have occurred and be continuing or
(ii) if any Event of Default shall have occurred and be continuing, applied as provided in Section 22(b). 
 SECTION 16.
As to Letter-of-Credit Rights. Upon the occurrence and during the continuance of an Event of Default, if any Grantor is at any time a beneficiary under a letter of credit issued in favor of such Grantor, such Grantor shall promptly notify the
Collateral Agent thereof and, at the request and option of the Collateral Agent, such Grantor shall, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either (i) use commercially reasonable efforts
to arrange for the issuer and any confirmer of such letter of credit to consent to an assignment to the Collateral Agent of the proceeds of any drawing under the letter of credit or (ii) use commercially reasonable efforts to arrange for the
Collateral Agent to become the transferee beneficiary of the letter of credit, with the Collateral Agent agreeing, in each case, that the proceeds of any drawing under the letter of credit are to be paid to the applicable Grantor unless an Event of
Default has occurred or is continuing. 
 SECTION 17. Commercial Tort Claims. Each Grantor will promptly give notice to the Collateral
Agent of any commercial tort claim individually in excess of $5,000,000 that may arise after the date hereof and will immediately execute or otherwise authenticate a supplement to this Agreement, and otherwise take all necessary action, to subject
such commercial tort claim to the first priority security interest created under this Agreement. 
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 SECTION 18. Transfers and Other Liens; Additional Shares. (a) Each Grantor agrees that it
will not (i) sell, assign or otherwise dispose of, or grant any option with respect to, any of the Collateral, other than sales, assignments and other dispositions of Collateral and options relating to Collateral permitted under the terms of
the Credit Agreement or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral of such Grantor except for the pledge, assignment and security interest created under this Agreement and Liens permitted under the
Loan Documents. 
 (b) Each Grantor agrees that it will (i) cause each issuer of the Pledged Equity pledged by such Grantor not to issue
any Equity Interests or other securities in addition to or in substitution for the Pledged Equity issued by such issuer, except to such Grantor (except for director’s qualifying shares and shares issued to foreign nationals to the extent
required by applicable law, or as otherwise required by law), and (ii) pledge hereunder, immediately upon its acquisition (directly or indirectly) thereof, any and all additional Equity Interests or other securities (subject to
Section 1(d)(iii) with respect to any Equity Interest in any Foreign Subsidiary). 
 SECTION 19. Collateral Agent Appointed
Attorney in Fact. Each Grantor hereby irrevocably appoints the Collateral Agent such Grantor’s attorney in fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time,
upon the occurrence and during the continuance of an Event of Default, in the Collateral Agent’s reasonable discretion, to take any action and to execute any instrument that the Collateral Agent may deem necessary or advisable to effect the
provisions of this Agreement, including, without limitation: 
 (a) to obtain and adjust insurance required to be paid to the
Collateral Agent pursuant to Section 11, 
 (b) to ask for, demand, collect, sue for, recover, compromise, receive
and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral, 
 (c) to
receive, indorse and collect any drafts or other instruments, documents and chattel paper, in connection with subsection (a) or (b) above, and 
 (d) to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce compliance with the terms and conditions of any Assigned Agreement or the rights of the Collateral Agent with respect to any of the Collateral. 
 SECTION 20. Collateral Agent May Perform. If any Grantor fails to perform any agreement contained herein, the Collateral Agent may, but without
any obligation to do so, with notice (or upon the occurrence and during the continuance of an Event of Default, without notice), itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection
therewith shall be payable by such Grantor under Section 23. 
 SECTION 21. The Collateral Agent’s Duties. The powers
conferred on the Collateral Agent hereunder are solely to protect the Secured Parties’ interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession
and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty (other than as imposed by law, this Agreement or any other Loan Document) as to any Collateral, as to 
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 ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters
relative to any Collateral, whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The
Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which it accords its own property and will
not be liable or responsible for any loss or damage to any Collateral, or for any diminution in the value thereof, by reason of any act or omission of any sub-agent or bailee selected by the Collateral Agent in good faith, except to the extent that
such liability arises from the Collateral Agent’s gross negligence, bad faith or willful misconduct. 
 SECTION 22. Remedies.
Subject to Section 8.02 of the Credit Agreement, if any Event of Default shall have occurred and be continuing: 
 (a) The
Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC
applies to the affected Collateral) and also may: (i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by
the Collateral Agent and make it available to the Collateral Agent at a place and time to be designated by the Collateral Agent that is reasonably convenient to both parties; (ii) without notice except as specified below, sell the Collateral or
any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially
reasonable; (iii) occupy any premises owned or, to the extent lawful and permitted, leased by any of the Grantors where the Collateral or any part thereof is assembled or located for a reasonable period in order to effectuate its rights and
remedies hereunder or under law, without obligation to such Grantor in respect of such occupation; and (iv) exercise any and all rights and remedies of any of the Grantors under or in connection with the Collateral, or otherwise in respect of
the Collateral, including, without limitation, (A) any and all rights of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, the Assigned Agreements, the Receivables, the Related
Contracts and the other Collateral, (B) withdraw, or cause or direct the withdrawal, of all funds with respect to the Account Collateral and (C) exercise all other rights and remedies with respect to the Assigned Agreements, the
Receivables, the Related Contracts and the other Collateral, including, without limitation, those set forth in Section 9-607 of the UCC. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days’
notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of
notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which
it was so adjourned. Each Grantor recognizes that in light of such applicable restrictions and limitations arising under Federal and state securities laws, the Collateral Agent may, with respect to any sale of the Pledged Equity, limit the
purchasers to those who will agree, among other things, to acquire such Pledged Equity for their own account, for investment, and not with a view to the distribution or resale thereof. In the event of any such sale, the Collateral Agent shall incur
no responsibility or liability for selling all or any part of the Pledged Equity at a price that the Collateral Agent, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility
that a substantially higher price might have been realized if the sale were deferred until after registration as aforesaid or if more than a single purchaser were approached. 
 Domestic Security Agreement 
  

 18 

 (b) Any cash held by or on behalf of the Collateral Agent and all cash proceeds received by or on behalf
of the Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of the Collateral Agent, be held by the Collateral Agent as collateral for, or at any time
thereafter applied (after payment of any amounts payable to the Collateral Agent pursuant to Section 23) in whole or in part by the Collateral Agent for the ratable benefit of the Secured Parties against, all or any part of the Secured
Obligations, as set forth in Section 8.03 of the Credit Agreement. 
 (c) All payments received by any Grantor under or in
connection with any Assigned Agreement or otherwise in respect of the Collateral shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the
Collateral Agent in the same form as so received (with any necessary indorsement). 
 (d) The Collateral Agent may, without notice to any
Grantor except as required by law and at any time or from time to time, charge, set off and otherwise apply all or any part of the Secured Obligations against any funds held with respect to the Account Collateral or in any other deposit account.

 (e) The Collateral Agent may send to each bank, securities intermediary, commodity intermediary or issuer party to any Deposit Account
Control Agreement, Securities Account Control Agreement, Commodity Account Control Agreement or Uncertificated Security Control Agreement a “Notice of Exclusive Control” (or similar term) as defined in and under such Agreement. 

(f) In the event of any sale or other disposition of any of the Intellectual Property Collateral of any Grantor, the goodwill symbolized by any
Trademarks subject to such sale or other disposition shall be included therein, and such Grantor shall supply to the Collateral Agent or its designee such Grantor’s know-how and expertise, and documents and things relating to any Intellectual
Property Collateral subject to such sale or other disposition, and such Grantor’s customer lists and other records and documents relating to such Intellectual Property Collateral and to the manufacture, distribution, advertising and sale of
products and services of such Grantor. 
 (g) If the Collateral Agent shall determine to exercise its right to sell all or any of the
Security Collateral of any Grantor pursuant to this Section 22, each Grantor agrees that, upon request of the Collateral Agent, such Grantor will, at its own reasonable expense, do or cause to be done all such other commercially
reasonable acts and things as may be reasonably necessary to make such sale of such Security Collateral or any part thereof valid and binding and in compliance with applicable law. 
 (h) Notwithstanding anything to the contrary in this Agreement, the exercise of remedies by the Collateral Agent under this Agreement upon the occurrence
and during the continuance of an Event of Default shall be subject to Section 8.02 of the Credit Agreement. 
 SECTION 23.
Indemnity and Expenses. (a) Each Grantor agrees to indemnify, defend and save and hold harmless each Secured Party and each Representative Party (as defined below) of any of the foregoing Persons (each, an “Indemnified
Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against
any Indemnified Party, in each case arising out of or in connection with or resulting from this Agreement (including, without limitation, enforcement of this Agreement), provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final judgment to have resulted from the gross negligence, bad faith or willful misconduct of
such Indemnitee or such Indemnitee’s Representative Parties or (y) result from a claim brought by any Grantor against an Indemnitee for breach of such 
 Domestic Security Agreement 
  

 19 

 Indemnitee’s obligations under this Agreement, if such Grantor has obtained a final judgment in its favor on such
claim as determined by a court of competent jurisdiction. For purposes of this Section 23(a), “Representative Parties” means, as to any Person, (i) such Person’s officers, directors and employees and
(ii) such Person’s Affiliates, agents, advisers and other representatives, in each case to the extent acting at the direction of such Person. 
 (b) Each Grantor will within 30 days of written demand pay to the Collateral Agent the amount of any and all reasonable expenses, including, without limitation, the reasonable fees and reasonable out-of-pocket
expenses of its counsel and of any experts and agents, that the Collateral Agent may incur in connection with (i) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral
of such Grantor, (ii) the exercise or enforcement of any of the rights of the Collateral Agent or the other Secured Parties hereunder or (iii) the failure by such Grantor to perform or observe any of the provisions hereof. 
 SECTION 24. Amendments; Waivers; Additional Grantors; Etc. (a) No amendment or waiver of any provision of this Agreement, and no consent to any
departure by any Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Collateral Agent and the Grantors, and then such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. No failure on the part of the Collateral Agent or any other Secured Party to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of
any such right preclude any other or further exercise thereof or the exercise of any other right. 
 (b) Upon the execution and delivery by
any Person of a security agreement supplement in substantially the form of Exhibit E hereto (each a “Security Agreement Supplement”), such Person shall be referred to as an “Additional Grantor” and shall be and
become a Grantor hereunder, and each reference in this Agreement and the other Loan Documents to “Grantor” shall also mean and be a reference to such Additional Grantor, each reference in this Agreement and the other Loan Documents to the
“Collateral” shall also mean and be a reference to the Collateral granted by such Additional Grantor and each reference in this Agreement to a Schedule shall also mean and be a reference to the schedules attached to such Security
Agreement Supplement. 
 SECTION 25. Notices, Etc. All notices and other communications provided for hereunder shall be either
(i) in writing (including telegraphic, telecopier or telex communication) and mailed, telegraphed, telecopied, telexed or otherwise delivered or (ii) by electronic mail (if electronic mail addresses are designated as provided below)
confirmed immediately in writing, in the case of the US Borrower or the Collateral Agent (as provided for the Administrative Agent thereunder), addressed to it at its address specified in the Credit Agreement and, in the case of each Grantor other
than the US Borrower, addressed to it at its address set forth opposite such Grantor’s name on the signature pages hereto or on the signature page to the Security Agreement Supplement pursuant to which it became a party hereto; or, as to any
party, at such other address as shall be designated by such party in a written notice to the other parties. All such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the
relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, four (4) Business Days after deposit in the mails, postage prepaid;
(C) if delivered by facsimile, when sent and receipt has been confirmed; and (D) if delivered by electronic mail, when delivered. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this
Agreement or of any Security Agreement Supplement or Schedule hereto shall be effective as delivery of an original executed counterpart thereof. 
 Domestic Security Agreement 
  

 20 

 SECTION 26. Continuing Security Interest; Assignments under the Credit Agreement. This Agreement
shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the latest of (i) the payment in full in cash of the Secured Obligations (other than (x) obligations with respect to
Secured Hedge Agreements, (y) Cash Management Obligations not yet due and payable and (z) the contingent obligations not yet accrued and payable under the Loan Documents), (ii) the Maturity Date for the Revolving Credit Facility,
(iii) the Maturity Date for the Term Loan Facility and (iv) the termination or expiration of all Letters of Credit, (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the rights and remedies
of the Collateral Agent hereunder, to the benefit of the Secured Parties and their respective permitted successors, transferees and assigns. Without limiting the generality of the foregoing subsection (c), any Lender may assign or otherwise transfer
all or any portion of its rights and obligations under the Credit Agreement (including, without limitation, all or any portion of its Commitments, the Loans owing to it and the Note or Notes, if any, held by it) to any other Person, and such other
Person shall thereupon become vested with all the benefits in respect thereof granted to such Lender herein or otherwise, in each case as provided in Section 10.07 of the Credit Agreement. 
 SECTION 27. Release; Termination. (a) Upon any sale, lease, transfer or other disposition of any item of Collateral of any Grantor in
accordance with the terms of the Loan Documents (other than sales of Inventory in the ordinary course of business), the Collateral Agent will, at such Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted hereby; provided, however, that (i) such Grantor shall have delivered to the Collateral Agent a written
request for release describing the item of Collateral and the terms of the sale, lease, transfer or other disposition in reasonable detail, including, without limitation, the price thereof and any expenses in connection therewith, together with a
form of release for execution by the Collateral Agent and a certificate of such Grantor to the effect that the transaction is in compliance with the Loan Documents and as to such other matters as the Collateral Agent may reasonably request and
(ii) the proceeds of any such sale, lease, transfer or other disposition required to be applied, or any payment to be made in connection therewith, in accordance with Section 2.05 of the Credit Agreement shall, to the extent so
required, be paid or made to, or in accordance with the instructions of, the Collateral Agent when and as required under Section 2.05 of the Credit Agreement. 
 (b) Upon the latest of (i) the payment in full in cash of the Secured Obligations (other than (x) obligations with respect to Secured Hedge Agreements, (y) Cash Management Obligations not yet due and
payable and (z) contingent indemnification obligations not yet accrued and payable under the Loan Documents), (ii) the Maturity Date for the Revolving Credit Facility, (iii) the Maturity Date for the Term Loan Facility and
(iv) the cash collateralization, back-stop (on terms reasonably satisfactory to the Collateral Agent), termination or expiration of all Letters of Credit, the pledge and security interest granted hereby shall terminate and all rights to the
Collateral shall revert to the applicable Grantor. Upon any such termination, the Collateral Agent will, at the applicable Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to
evidence such termination. 
 SECTION 28. Execution in Counterparts. This Agreement may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be effective
as delivery of an original executed counterpart of this Agreement. 
 SECTION 29. Governing Law. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York. 
 Domestic Security Agreement 
  

 21 

 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.] 
 Domestic Security Agreement 
  

 22 

 IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above written. 
  

			
	SENSATA TECHNOLOGIES FINANCE     COMPANY, LLC
		
	By:	 	 /s/ Thomas Wroe, Jr.

	Name:	 	 Thomas Wroe, Jr.

	Title:	 	 Chief Executive Officer

		
		 	Address for Notices:
		
		 	    c/o Sensata Technologies
		 	    529 Pleasant Street
		 	    Attleboro, MA 02703
	
	SENSATA TECHNOLOGIES, INC.
		
	By:	 	 /s/ Thomas Wroe, Jr.

	Name:	 	 Thomas Wroe, Jr.

	Title:	 	 Chief Executive Officer

		
		 	Address for Notices:
		
		 	    529 Pleasant Street
		 	    Attleboro, MA 02703

 Domestic Security Agreement 

 Schedule I to the 
 Domestic Security Agreement 
 INVESTMENT PROPERTY 
 Part I 
 Initial Pledged Shares

  

													
	 Grantor
	 	 Issuer
	 	 Class of
Equity
Interest
	  	Par Value	  	Certificate
No(s)	  	Number of
Shares	  	Percentage of
Outstanding
Shares
		 		 		  		  		  		  	
		 		 		  		  		  		  	

 Part II 
 Initial Pledged Debt 
  

											
	 Grantor
	 	 Debt
Issuer
	 	 Description of
Debt
	  	Debt Certificate
No(s)	  	 Final
 Maturity
	  	Outstanding
Principal Amount
		 		 		  		  		  	
		 		 		  		  		  	

 Part III 
 Other Investment Property 
  

											
	 Grantor
	 	 Issuer
	 	 Name of
 Investment
	  	 Certificate
 No(s)
	  	Amount	  	 Other
 Identification

		 		 		  		  		  	
		 		 		  		  		  	

  

 Schedule II to the 
 Domestic Security Agreement 
 PLEDGED DEPOSIT ACCOUNTS 
  

							
	 Grantor
	 	 Type of Account
	 	 Name and Address of Bank
	  	Account Number
		 		 		  	
		 		 		  	
		 		 		  	

  

 Schedule III to the 
 Domestic Security Agreement 
 SECURITIES ACCOUNTS 
  

							
	 Grantor
	 	 Type of Account
	 	 Name and Address of
 Securities Intermediary
	  	Account Number
		 		 		  	
		 		 		  	

  

 Schedule IV to the 
 Domestic Security Agreement 
 COMMODITIES ACCOUNTS 
  

							
	 Grantor
	 	 Type of Account
	 	 Name and Address of
 Commodity Intermediary
	  	Account Number
		 		 		  	
		 		 		  	

  

 Schedule V to the 
 Domestic Security Agreement 
 ASSIGNED AGREEMENTS 
  

			
	 Grantor
	  	 Assigned Agreement

  

 Schedule VI to the 
 Domestic Security Agreement 
 INTELLECTUAL PROPERTY 
 I. Patents 
  

													
	 Grantor
	  	Patent Titles	  	Country	  	Patent No.	  	Application No.	  	Filing Date	  	Issue Date
		  		  		  		  		  		  	
		  		  		  		  		  		  	

 II. Domain Names and Trademarks 
  

															
	 Grantor
	  	Domain Name/Mark	  	Country	  	Mark	  	Reg. No.	  	Application No.	  	Filing Date	  	Issue Date
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	

 III. Trade Names 
  

			
	 Grantor
	 	 Names

		 	
		 	

 IV. Copyrights 
  

															
	 Grantor
	  	Title of Work	  	Country	  	Title	  	Reg. No.	  	Application No.	  	Filing Date	  	Issue Date
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	

 V. IP Agreements 
  

			
	 Grantor
	 	 IP Agreements

		 	
		 	

  

 Schedule VII to the 
 Domestic Security Agreement 
 COMMERCIAL TORT CLAIMS 

 Schedule VIII to the 
 Domestic Security Agreement 
 LOCATION, CHIEF EXECUTIVE OFFICE, TYPE OF ORGANIZATION, JURISDICTION
OF 
 ORGANIZATION AND ORGANIZATIONAL IDENTIFICATION NUMBER 
  

											
	 Grantor
	 	 Location
	 	 Chief Executive Office
	  	Type of
Organization	  	Jurisdiction of
Organization	  	 Organizational
 I.D. No.

  

 Schedule IX to the 
 Domestic Security Agreement 
 CHANGES IN NAME, LOCATION, ETC. 

 Schedule X to the 
 Domestic Security Agreement 
 LOCATION OF EQUIPMENT AND INVENTORY 
 [Name of Grantor] 
 Locations of Equipment:

 Locations of Inventory: 
 [Name of Grantor] 
 Locations of Equipment: 
 Locations of Inventory: 

 Schedule XI to the 
 Domestic Security Agreement 
 LETTERS OF CREDIT 
  

													
	 Beneficiary
(Grantor)
	  	Issuer	  	 Nominated Person
 (if any)
	  	Account Party	  	Number	  	Maximum Available
Amount	  	Date

 Exhibit A to the 
 Domestic Security Agreement 
 FORM OF CONSENT AND AGREEMENT 
 The undersigned hereby (a) acknowledges notice of, and consents to the terms and provisions of, the Domestic Security Agreement dated as of
April 27, 2006 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”; the terms defined therein being used herein as therein defined) from
                     (the “Grantor”) and certain other grantors from time to time party thereto to Morgan Stanley &
Co. Incorporated, as Collateral Agent (the “Collateral Agent”) for the Secured Parties referred to therein, (b) consents in all respects to the pledge and assignment to the Collateral Agent of all of the Grantor’s right,
title and interest in, to and under the Assigned Agreement (as defined below) pursuant to the Security Agreement, (c) acknowledges that the Grantor has provided it with notice of the right of the Collateral Agent in the exercise of its rights
and remedies under the Security Agreement to make all demands, give all notices, take all actions and exercise all rights of the Grantor under the Assigned Agreement (as defined below), and (d) agrees with the Collateral Agent that: 

(1) A true copy of the agreement between the undersigned and the Grantor dated as of
                    ,          (the “Assigned Agreement”), including, without
limitation, all amendments, modifications, restatements and supplements is attached hereto as Schedule I. The Assigned Agreement is in full force and effect, and the undersigned is not aware of any default under the Assigned Agreement or any event
that would give any party the right to terminate or rescind the Assigned Agreement. Other than as disclosed on Schedule II attached hereto, no prepayments have been made of any amounts to become due under the Assigned Agreement. 
 (2) Upon notice and as instructed by the Grantor, the undersigned shall make all payments to be made by the undersigned under or in
connection with the Assigned Agreement directly to the Collateral Account or a Pledged Deposit Account subject to a Deposit Account Control Agreement or otherwise in accordance with instructions of the Collateral Agent. 
 (3) Any payment made pursuant to paragraph 2 above shall be made by the undersigned irrespective of, and without deduction for, any
counterclaim, defense, recoupment or set off and shall be final, and the undersigned will not seek to recover from any Secured Party for any reason once any such payment is made. 
 (4) The Collateral Agent or its designee shall be entitled to exercise any and all rights and remedies of the Grantor under the Assigned
Agreement in accordance with the terms of the Security Agreement, and the undersigned shall comply in all respects with such exercise. 
 (5) The undersigned will not, to the extent prohibited by the Security Agreement, (i) cancel or terminate the Assigned Agreement or consent to or accept any cancellation or termination thereof, or
(ii) amend, amend and restate, supplement or otherwise modify the Assigned Agreement. 
 (6) In the event of a default by
the Grantor in the performance of any of its obligations under the Assigned Agreement, or upon the occurrence or non-occurrence of any event or condition under the Assigned Agreement which would immediately or with the passage of any applicable
grace period or the giving of notice, or both, enable the undersigned to terminate or suspend its obligations under the Assigned Agreement, the undersigned shall not terminate the Assigned Agreement until it first gives written notice thereof to the
Collateral Agent and permits the Grantor and the Collateral Agent the period of time afforded to the Grantor under the Assigned Agreement to cure such default. 

 (7) The undersigned shall deliver to the Collateral Agent, concurrently with the delivery
thereof to the Grantor, a copy of each notice, request or demand given by the undersigned pursuant to the Assigned Agreement. 
 (8) Except as specifically provided in this Consent and Agreement, neither the Collateral Agent nor any other Secured Party shall have any liability or obligation under the Assigned Agreement as a result of this Consent and Agreement, the
Security Agreement or otherwise. 
 (9) Upon the enforcement of the Security Agreement by the Collateral Agent and the
transfer of the Assigned Agreement to a transferee, the undersigned will not unreasonably withhold its consent to the recognition of the transferee as the counterparty to the Assigned Agreement in the place and stead of the Grantor. 
 This Consent and Agreement shall be binding upon the undersigned and its successors and assigns, and shall inure, together with the rights and remedies
of the Collateral Agent hereunder, to the benefit of the Secured Parties and their successors, transferees and assigns. This Consent and Agreement shall be governed by and construed in accordance with the laws of the State of New York. 

IN WITNESS WHEREOF, the undersigned has duly executed this Consent and Agreement as of the date set opposite its name below. 
  

					
	Dated:                     , 200    	 	[NAME OF OBLIGOR]
			
		 	By	  	  

		 	Title:	  	

  

 2 

 Exhibit B to the 
 Domestic Security Agreement 
 FORM OF COPYRIGHT SECURITY AGREEMENT 
 This Copyright Security Agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Copyright
Security Agreement”) dated                     , 20     is made by the Persons listed on the signature
pages hereof (collectively, the “Grantors”) in favor of Morgan Stanley & Co. Incorporated, as collateral agent (the “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred
to below). 
 WHEREAS, SENSATA TECHNOLOGIES B.V., a private limited liability company (besloten vennootschap met beperkte
aansprakelijkheid) incorporated under the laws of the Netherlands, SENSATA TECHNOLOGIES FINANCE COMPANY, LLC, a Delaware limited liability company, and SENSATA TECHNOLOGIES INTERMEDIATE HOLDING B.V., a private limited liability company
(besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands, have entered into a Credit Agreement dated as of April 27, 2006 (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) with the Lenders party thereto and MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent. 
 WHEREAS, as a condition precedent to (i) the making of the Loans, (ii) the issuance of Letters of Credit by the Lenders under the Credit Agreement, (iii) the Bilateral Obligations provided by the
Lenders or their Affiliates from time to time and (iv) the entry into Secured Hedge Agreements by the Hedge Banks from time to time, each Grantor has executed and delivered that certain Domestic Security Agreement dated as of April 27,
2006 made by the Grantors to the Collateral Agent (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”). Terms defined in the Security Agreement and not otherwise defined
herein are used herein as defined in the Security Agreement. 
 WHEREAS, under the terms of the Security Agreement, the Grantors have granted
to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in, among other property, certain Copyrights of the Grantors constituting Material Intellectual Property Collateral, and have agreed as a condition thereof
to execute this Copyright Security Agreement for recording with the U.S. Copyright Office and any other appropriate governmental authorities. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees as follows: 
 Section 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent for the ratable benefit of the Secured Parties a continuing security interest in all of such Grantor’s right, title and
interest in and to the following (all of the following items or types of property being herein collectively referred to as the “Copyright Collateral”), whether now owned or existing or hereafter acquired or arising: 
 (i) each Copyright constituting Material Intellectual Property Collateral owned by the Grantor, including, without limitation, each
Copyright registration and application therefor, referred to in Schedule 1 hereto; 
 (ii) all registrations and applications
for registration for any of the foregoing; 
  

 (iv) all rights in the foregoing provided by international treaties or conventions, all
rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto; and 
 (v) any and all Proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and
Supporting Obligations relating to, any and all of the foregoing, including, without limitation, all Proceeds of and revenues from any and all claims for damages and injunctive relief for past, present and future infringement, dilution,
misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, all proceeds and damages relating thereto. 
 Section 2. Recordation. Each Grantor authorizes and requests that the Register of Copyrights and any other applicable government officer
record this Copyright Security Agreement. 
 Section 3. Execution in Counterparts. This Copyright Security Agreement may be
executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 Section 4. Grants, Rights and Remedies. This Copyright Security Agreement has been executed and delivered by the Grantors for the purpose of
recording the grant of security interest herein with the U.S. Copyright Office. The security interest granted hereby has been granted to the Collateral Agent in connection with the Security Agreement and is expressly subject to the terms and
conditions thereof and does not modify its terms or conditions or create any additional rights or obligations for any party thereto or hereto. The Security Agreement (and all rights and remedies of the Collateral Agent thereunder) shall remain in
full force and effect in accordance with its terms. 
 Section 5 Governing Law. This Copyright Security Agreement shall be
governed by, and construed in accordance with, the laws of the State of New York. 
 IN WITNESS WHEREOF, each Grantor has caused this
Copyright Security Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written. 
  

			
	 [            ]

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 2 

 Schedule 1 
 to Copyright 
 Security Agreement 
 COPYRIGHTS 

 Exhibit C to the 
 Domestic Security Agreement 
 FORM OF PATENT SECURITY AGREEMENT 
 This Patent Security Agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Patent Security
Agreement”) dated                     , 20     in favor of Morgan Stanley & Co.
Incorporated, as collateral agent (the “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred to below). 
 WHEREAS, SENSATA TECHNOLOGIES B.V., a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands, SENSATA TECHNOLOGIES FINANCE
COMPANY, LLC, a Delaware limited liability company, and SENSATA TECHNOLOGIES INTERMEDIATE HOLDING B.V., a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands,
have entered into a Credit Agreement dated as of April 27, 2006 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) with the Lenders party thereto and MORGAN STANLEY
SENIOR FUNDING, INC., as administrative agent. 
 WHEREAS, as a condition precedent to (i) the making of the Loans, (ii) the
issuance of Letters of Credit by the Lenders under the Credit Agreement, (iii) the Bilateral Obligations provided by the Lenders or their Affiliates from time to time and (iv) the entry into Secured Hedge Agreements by the Hedge Banks from
time to time, each Grantor has executed and delivered that certain Domestic Security Agreement dated as of April 27, 2006 made by the Grantors to the Collateral Agent (as amended, amended and restated, supplemented or otherwise modified from
time to time, the “Security Agreement”). Terms defined in the Security Agreement and not otherwise defined herein are used herein as defined in the Security Agreement. 
 WHEREAS, under the terms of the Security Agreement, the Grantors have granted to the Collateral Agent, for the ratable benefit of the Secured Parties, a
security interest in, among other property, certain Patents of the Grantors constituting Material Intellectual Property Collateral, and have agreed as a condition thereof to execute this Patent Security Agreement for recording with the U.S. Patent
and Trademark Office and any other appropriate governmental authorities. 
 NOW, THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, each Grantor agrees as follows: 
 Section 1. Grant of Security. Each Grantor
hereby grants to the Collateral Agent for the ratable benefit of the Secured Parties a continuing security interest in all of such Grantor’s right, title and interest in and to the following (all of the following items or types of property
being herein collectively referred to as the “Patent Collateral”), whether now owned or existing or hereafter acquired or arising: 
 (i) each Patent constituting Material Intellectual Property Collateral owned by the Grantor, including, without limitation, each Patent referred to in Schedule 1 hereto; 
 (ii) all issuances and applications for registration for any of the foregoing, together with all reissues, divisions, continuations,
continuations-in-part, extensions and reexaminations thereof; 

 (iii) all rights in the foregoing provided by international treaties or conventions, all
rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto; and 
 (iv) any and all Proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and
Supporting Obligations relating to, any and all of the foregoing, including, without limitation, all Proceeds of and revenues from any and all claims for damages and injunctive relief for past, present and future infringement, dilution,
misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, all proceeds and damages relating thereto. 
 Section 2. Recordation. Each Grantor authorizes and requests that the Commissioner for Patents and any other applicable government officer
record this Patent Security Agreement. 
 Section 3. Execution in Counterparts. This Patent Security Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 Section 4. Grants, Rights and Remedies. This Patent Security Agreement has been executed and delivered by the Grantors for the purpose of recording the grant of security interest herein with the U.S.
Patent and Trademark Office. The security interest granted hereby has been granted to the Collateral Agent in connection with the Security Agreement and is expressly subject to the terms and conditions thereof and does not modify its terms or
conditions or create any additional rights or obligations for any party thereto or hereto. The Security Agreement (and all rights and remedies of the Collateral Agent thereunder) shall remain in full force and effect in accordance with its terms.

 Section 5. Governing Law. This Patent Security Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York. 
 IN WITNESS WHEREOF, each Grantor has caused this Patent Security Agreement to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above written. 
  

			
	 [                                      
                                        
      ]

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 2 

 Schedule 1 
 to Patent 
 Security Agreement 
 [NAME OF GRANTOR] 
 PATENTS AND DESIGN PATENTS 
  

									
	 Patent No.
	 	 Issued
	 	 Expiration
	  	Country	  	Title

 PATENT APPLICATIONS 
  

									
	 Case No.
	 	 Serial No.
	 	 Country
	  	Date	  	Filing Title

  

 Exhibit D to the 
 Security Agreement 
 FORM OF TRADEMARK SECURITY AGREEMENT 
 This Trademark Security Agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Trademark
Security Agreement”) dated                     , 20     is made by the Persons listed on the signature
pages hereof (collectively, the “Grantors”) in favor of Morgan Stanley & Co. Incorporated, as collateral agent (the “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred
to below). 
 WHEREAS, SENSATA TECHNOLOGIES B.V., a private limited liability company (besloten vennootschap met beperkte
aansprakelijkheid) incorporated under the laws of the Netherlands, SENSATA TECHNOLOGIES FINANCE COMPANY, LLC, a Delaware limited liability company, and SENSATA TECHNOLOGIES INTERMEDIATE HOLDING B.V., a private limited liability company
(besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands, have entered into a Credit Agreement dated as of April 27, 2006 (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) with the Lenders party thereto and MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent. 
 WHEREAS, as a condition precedent to (i) the making of the Loans, (ii) the issuance of Letters of Credit by the Lenders under the Credit Agreement, (iii) the Bilateral Obligations provided by the
Lenders or their Affiliates from time to time and (iv) the entry into Secured Hedge Agreements by the Hedge Banks from time to time, each Grantor has executed and delivered that certain Domestic Security Agreement dated as of April 27,
2006 made by the Grantors to the Collateral Agent (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”). Terms defined in the Security Agreement and not otherwise defined
herein are used herein as defined in the Security Agreement. 
 WHEREAS, under the terms of the Security Agreement, the Grantors have granted
to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in, among other property, certain Trademarks constituting Material Intellectual Property Collateral of the Grantors, and have agreed as a condition thereof
to execute this Trademark Security Agreement for recording with the U.S. Patent and Trademark Office and any other appropriate governmental authorities. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees as follows: 
 Section 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent for the ratable benefit of the Secured Parties a continuing
security interest in all of such Grantor’s right, title and interest in and to the following (all of the following items or types of property being herein collectively referred to as the “Trademark Collateral”), whether
now owned or existing or hereafter acquired or arising: 
 (i) each Trademark constituting Material Intellectual Property
Collateral owned by the Grantor (including, without limitation, each Trademark registration and application therefor, referred to in Schedule 1 hereto, and all of the goodwill of the business connected with the use of or symbolized by, each
Trademark); 
  

 (ii) all registrations and applications for registration for any of the foregoing,
together with all renewals thereof; 
 (iii) all rights in the foregoing provided by international treaties or conventions,
all rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto; and 
 (iv) any and all Proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and
Supporting Obligations relating to, any and all of the foregoing, including, without limitation, all Proceeds of and revenues from any and all claims for damages and injunctive relief for past, present and future infringement, dilution,
misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, all proceeds and damages relating thereto. 
 Section 2. Recordation. Each Grantor authorizes and requests that the Commissioner for Trademarks and any other applicable government officer
record this Trademark Security Agreement. 
 Section 3. Execution in Counterparts. This Trademark Security Agreement may be
executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 Section 4. Grants, Rights and Remedies. This Trademark Security Agreement has been executed and delivered by the Grantors for the purpose of
recording the grant of security interest herein with the U.S. Patent and Trademark Office. The security interest granted hereby has been granted to the Collateral Agent in connection with the Security Agreement and is expressly subject to the terms
and conditions thereof and does not modify its terms or conditions or create any additional rights or obligations for any party thereto or hereto. The Security Agreement (and all rights and remedies of the Collateral Agent thereunder) shall remain
in full force and effect in accordance with its terms. 
 Section 5. Governing Law. This Trademark Security Agreement shall be
governed by, and construed in accordance with, the laws of the State of New York. 
 IN WITNESS WHEREOF, each Grantor has caused this
Trademark Security Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written. 
  

			
	 [            ]

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 2 

 Schedule 1 
 to Trademark 
 Security Agreement 
 U.S. TRADEMARK REGISTRATIONS 
  

					
	 TRADEMARK
	 	 REG. NO.
	 	 REG. DATE

 U.S. TRADEMARK APPLICATIONS 
  

					
	 TRADEMARK
	 	 REG. NO.
	 	 REG. DATE

  

 Exhibit E to the 
 Domestic Security Agreement 
 FORM OF DOMESTIC SECURITY AGREEMENT SUPPLEMENT 
 [Date of Security Agreement Supplement] 
 Morgan
Stanley Senior Funding, Inc., as Administrative Agent 
 One Pierrepont Plaza, 7th Floor 
 300 Cadman Plaza West 
 Brooklyn, NY 11201 
 Attn: Larry Benison / Gerard Jordan 
 Phone: (718) 754-7299 / 7422 
 Fax: (718) 754-7249 / 7250 
 Ladies and Gentlemen: 
 Reference is made to (i) the Credit Agreement dated as of April 27, 2006 (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among SENSATA TECHNOLOGIES B.V., a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands, SENSATA
TECHNOLOGIES FINANCE COMPANY, LLC, a Delaware limited liability company, as the Borrowers, SENSATA TECHNOLOGIES INTERMEDIATE HOLDING B.V., a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) incorporated
under the laws of the Netherlands, the guarantors named therein, the Lenders party thereto, Morgan Stanley Senior Funding, Inc., as administrative agent for the Lenders (together with any successor administrative agent appointed pursuant to
Article 9 of the Credit Agreement, the “Administrative Agent”), and (ii) the Domestic Security Agreement dated as of April 27, 2006, (as amended, amended and restated, supplemented or otherwise modified from time to
time, the “Security Agreement”) made by the Grantors from time to time party thereto in favor of the Collateral Agent for the Secured Parties. Terms defined in the Credit Agreement or the Security Agreement and not otherwise defined
herein are used herein as defined in the Credit Agreement or the Security Agreement. 
 SECTION 1. Grant of Security. Subject to the
terms and conditions set forth in the Security Agreement, including provisions for the termination of security interests granted and the release of Liens thereunder, the undersigned hereby grants to the Collateral Agent, for the ratable benefit of
the Secured Parties, a security interest in all of its right, title and interest in and to the following, in each case whether now owned or hereafter acquired by the undersigned, wherever located and whether now or hereafter existing or arising
(collectively, the undersigned’s “Collateral”): all Equipment, Inventory, Receivables, Related Contracts, Security Collateral (including, without limitation, the shares of stock and other Equity Interests set forth on Part I of
Schedule I hereto, the indebtedness set forth on Part II of Schedule I hereto and the securities and Securities Accounts and Commodities Accounts set forth on Schedules III and IV hereto), Agreement Collateral (including, without limitation, each of
the agreements listed on Schedule V hereto), Account Collateral (including, without limitation, the deposit accounts set forth on Schedule II hereto), Intellectual Property Collateral, Commercial Tort Claims Collateral (including, without
limitation, the commercial tort claims described in Schedule VII hereto), all books and records (including, without limitation, customer lists, credit files, printouts and other computer output materials and records) of the undersigned pertaining to
any of the undersigned’s Collateral, and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with 
  

 2 

 respect to, and supporting obligations relating to, any and all of the undersigned’s Collateral (including, without
limitation, proceeds, collateral and supporting obligations that constitute property of the types described in this Section 1) and, to the extent not otherwise included, all (A) payments under insurance (whether or not the
Collateral Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, and (B) cash. 
 SECTION 2. Security for Obligations. The grant of a security interest in the Collateral by the undersigned under this Security Agreement
Supplement and the Security Agreement secures the payment of all Secured Obligations of the undersigned now or hereafter existing under the Loan Documents, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement
obligations, interest, fees, premiums, penalties, indemnifications, contract causes of action, costs, expenses or otherwise. Without limiting the generality of the foregoing, this Security Agreement Supplement and the Security Agreement secure the
payment of all amounts that constitute part of the Secured Obligations and would be owed by the undersigned to any Secured Party under the Loan Documents, but for the fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving a Loan Party. Notwithstanding anything in this Security Agreement Supplement, the Security Agreement or the Credit Agreement to the contrary, (i) the aggregate principal amount of all
Bilateral Obligations secured hereby shall not exceed $40,000,000 and (ii) to the extent that Bilateral Obligations are cash collateralized or otherwise secured (other than pursuant to the Security Agreement), such Bilateral Obligations shall
not be secured hereby. 
 SECTION 3. Representations and Warranties. (a) The undersigned’s exact legal name, as defined in
Section 9-503(a) of the UCC, is correctly set forth in Schedule VIII hereto. The undersigned’s location, chief executive office, type of organization, jurisdiction of organization and organizational identification number, if any, is set
forth in Schedule VIII hereto and is accurate in all material respects. Within the five years preceding the date hereof, the undersigned has not changed its legal name, location (as defined in the UCC), chief executive office, type of organization,
jurisdiction of organization or organizational identification number, if any, from those set forth in Schedule VIII hereto except as set forth in Schedule IX hereto 
 (b) Inventory (other than Equipment and Inventory that is (i) located at customer or supplier locations in the normal course of business or (ii) in transit or out for repair or further process) of such
Grantor are located at the places specified therefor in Schedule X hereto or at another location as to which such Grantor has complied with the requirements of Section 10(a) of the Security Agreement or otherwise have an aggregate book
value of no more than $10,000,000. Within the five years preceding the date hereof, the undersigned has not changed the location of its Equipment or Inventory except as set forth in Schedule IX hereto. 
 (c) The undersigned is not a beneficiary or assignee under any letter of credit in a face amount greater than $5,000,000 other than the letters of credit
described in Schedule XI hereto. 
 (d) The undersigned hereby makes each other representation and warranty set forth in
Section 8 of the Security Agreement with respect to itself and the Collateral granted by it. 
 SECTION 4. Obligations
Under the Security Agreement. The undersigned hereby agrees, as of the date first above written, to be bound as a Grantor by all of the terms and provisions of the Security Agreement to the same extent as each of the other Grantors. The
undersigned further agrees, as of the date first above written, that each reference in the Security Agreement to an “Additional Grantor” or a “Grantor” shall also mean and be a reference to the undersigned, that each reference to
the “Collateral” or any part thereof shall also mean and be a reference to the undersigned’s Collateral or part thereof, as the case may be, and that each reference in the Security Agreement to a Schedule shall also mean and be a
reference to the schedules attached hereto. 
  

 3 

 SECTION 5. Governing Law. This Security Agreement Supplement shall be governed by, and construed
in accordance with, the laws of the State of New York. 
  

			
	Very truly yours,
	
	[NAME OF ADDITIONAL GRANTOR]
		
	By	 	  

	Title:	 	
	
	Address for notices:
	  

	  
  

	  
  

  

 4ASSET & STOCK PURCHASE AGREEMENT

 Exhibit 10.6 
 ASSET AND STOCK PURCHASE AGREEMENT 
 dated as of 
 January 8, 2006 
 between 
 TEXAS INSTRUMENTS INCORPORATED 
 and

 S&C PURCHASE CORP. 

 TABLE OF CONTENTS 
  

			
	 	  	PAGE
	 ARTICLE 1

	 DEFINITIONS

		
	 Section 1.01. Definitions
	  	1
	 Section 1.02. Other Definitional and Interpretative Provisions
	  	13
	
	 ARTICLE 2

	 PURCHASE AND SALE

		
	 Section 2.01. Purchase and Sale of the Shares
	  	14
	 Section 2.02. Purchase and Sale of the Purchased Assets
	  	14
	 Section 2.03. Excluded Assets
	  	15
	 Section 2.04. Assumed Liabilities
	  	16
	 Section 2.05. Excluded Liabilities
	  	17
	 Section 2.06. Restructuring
	  	19
	 Section 2.07. Limitation on Assignment of Purchased Assets
	  	21
	 Section 2.08. Purchase Price; Allocation of Purchase Price
	  	21
	 Section 2.09. Closing
	  	23
	 Section 2.10. Closing Statement.
	  	24
	 Section 2.11. Adjustment of Purchase Price
	  	25
	
	 ARTICLE 3

	 REPRESENTATIONS AND WARRANTIES OF
SELLER

		
	 Section 3.01. Corporate Existence and Power
	  	26
	 Section 3.02. Corporate Authorization
	  	26
	 Section 3.03. Governmental Authorization
	  	27
	 Section 3.04. Noncontravention
	  	27
	 Section 3.05. Required Consents
	  	27
	 Section 3.06. Purchased Subsidiaries
	  	27
	 Section 3.07. Financial Statements
	  	28
	 Section 3.08. Absence of Certain Changes
	  	28
	 Section 3.09. No Undisclosed Material Liabilities
	  	30
	 Section 3.10. Material Contracts
	  	30
	 Section 3.11. Litigation
	  	32
	 Section 3.12. Compliance with Laws and Court Orders
	  	32
	 Section 3.13. Properties; Liens
	  	32
	 Section 3.14. Intellectual Property
	  	33
	 Section 3.15. Sufficiency of Purchased Assets
	  	34
	 Section 3.16. Permits
	  	34
	 Section 3.17. Finders’ Fees
	  	35

  

 i 

			
	 	  	PAGE
	 Section 3.18. Employee Benefit Plans
	  	35
	 Section 3.19. Employee and Labor Matters
	  	36
	 Section 3.20. Environmental Compliance
	  	36
	 Section 3.21. Insurance
	  	37
	 Section 3.22. Customer and Supplier Relationships
	  	37
	 Section 3.23. Product Warranty and Liability
	  	38
	
	 ARTICLE 4

	 REPRESENTATIONS AND WARRANTIES OF
BUYER

		
	 Section 4.01. Corporate Existence and Power
	  	38
	 Section 4.02. Corporate Authorization
	  	38
	 Section 4.03. Governmental Authorization
	  	39
	 Section 4.04. Noncontravention
	  	39
	 Section 4.05. Financing
	  	39
	 Section 4.06. Litigation
	  	40
	 Section 4.07. Finders’ Fees
	  	40
	 Section 4.08. Inspections; No Other Representations
	  	40
	
	 ARTICLE 5

	 COVENANTS OF SELLER

		
	 Section 5.01. Conduct of the Business
	  	41
	 Section 5.02. Access to Information
	  	41
	 Section 5.03. Non-compete
	  	43
	 Section 5.04. Confidentiality
	  	45
	 Section 5.05. Insurance.
	  	45
	 Section 5.06. Exclusivity
	  	46
	 Section 5.07. Intercompany Receivables and Payables
	  	47
	
	 ARTICLE 6

	 COVENANTS OF BUYER

		
	 Section 6.01. Confidentiality
	  	47
	 Section 6.02. Access
	  	47
	 Section 6.03. Financing Matters
	  	48
	 Section 6.04. 338(g) Election
	  	49
	
	 ARTICLE 7

	 COVENANTS OF BUYER AND
SELLER

		
	 Section 7.01. Reasonable Efforts; Further Assurance
	  	49
	 Section 7.02. Certain Filings; Consents
	  	50
	 Section 7.03. Public Announcements
	  	50
	 Section 7.04. Notices of Certain Events
	  	51

  

 ii 

			
	 	  	PAGE
	 Section 7.05. WARN Act
	  	51
	 Section 7.06. Non-solicit
	  	51
	 Section 7.07. Conflicts; Privileges
	  	52
	 Section 7.08. Commercial Arrangements
	  	53
	 Section 7.09. Accounts Receivable
	  	53
	 Section 7.10. Seller Trademarks and Tradenames
	  	53
	 Section 7.11. Certain Products
	  	55
	
	 ARTICLE 8

	 TAX MATTERS

		
	 Section 8.01. Tax Matters
	  	57
	 Section 8.02. Tax Cooperation; Allocation of Taxes
	  	57
	
	 ARTICLE 9

	 PERSONNEL MATTERS

		
	 Section 9.01. Business Employees
	  	60
	 Section 9.02. Maintenance of Compensation and Employee Benefits
	  	61
	 Section 9.03. Employee Communications
	  	71
	 Section 9.04. Acknowledgement
	  	71
	 Section 9.05. No Third-party Beneficiaries
	  	71
	
	 ARTICLE 10

	 CONDITIONS TO CLOSING

		
	 Section 10.01. Conditions to Obligations of Buyer and Seller
	  	72
	 Section 10.02. Conditions to Obligation of Buyer
	  	72
	 Section 10.03. Conditions to Obligation of Seller
	  	73
	
	 ARTICLE 11

	 SURVIVAL; INDEMNIFICATION

		
	 Section 11.01. Survival
	  	73
	 Section 11.02. Indemnification
	  	74
	 Section 11.03. Procedures
	  	76
	 Section 11.04. Calculation of Damages
	  	81
	 Section 11.05. Assignment of Claims
	  	82
	 Section 11.06. Exclusivity
	  	82
	
	 ARTICLE 12

	 TERMINATION

		
	 Section 12.01. Grounds for Termination
	  	82
	 Section 12.02. Effect of Termination
	  	83

  

 iii 

			
	 	  	PAGE
	 ARTICLE 13

	 MISCELLANEOUS

		
	 Section 13.01. Notices
	  	83
	 Section 13.02. Amendments and Waivers
	  	84
	 Section 13.03. Expenses
	  	85
	 Section 13.04. Successors and Assigns
	  	85
	 Section 13.05. Governing Law
	  	85
	 Section 13.06. Jurisdiction
	  	85
	 Section 13.07. Counterparts; Effectiveness; No Third Party Beneficiaries
	  	86
	 Section 13.08. Entire Agreement
	  	86
	 Section 13.09. Bulk Sales Laws
	  	86
	 Section 13.10. Severability
	  	86
	 Section 13.11. Specific Performance
	  	87
	 Section 13.12. Disclosure Schedule
	  	87

 DISCLOSURE SCHEDULE 
 SCHEDULE 4.05    Commitment Letters 
  

			
	EXHIBIT A	 	Form of Assignment and Assumption Agreement
	EXHIBIT B	 	Form of Cross License Agreement
	EXHIBIT C	 	Form of Transition Services Agreement
	EXHIBIT D	 	Form of Opinion Regarding Employee Benefit Plan Qualification (for Buyer and Seller)
	EXHIBIT E	 	Form of Certification Regarding VEBA (for Buyer and Seller)

  

 iv 

 ASSET AND STOCK PURCHASE AGREEMENT 
 AGREEMENT (this “Agreement”) dated as of January 8, 2006 between Texas Instruments Incorporated, a Delaware corporation
(“Seller”), and S&C Purchase Corp., a Delaware corporation (“Buyer”). 
 W I T N E S S E T H :

 WHEREAS, Buyer desires to purchase the Shares (as defined below) and the Purchased Assets (as defined below) and assume the Assumed
Liabilities (as defined below) from Seller and its Subsidiaries, and Seller and its Subsidiaries desire to sell the Shares and the Purchased Assets and transfer the Assumed Liabilities to Buyer, upon the terms and subject to the conditions
hereinafter set forth; 
 NOW, THEREFORE, the parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 Section 1.01. Definitions. (a) As used herein, the following terms have the following meanings: 
 “Accounting Policies” means GAAP, applied in a manner consistent with the accounting policies, principles, practices and methodologies
used in the preparation of the Audited Balance Sheet. 
 “Affiliate” means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control with such other Person. For purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have correlative meanings. 
 “Applicable Law” means, with respect to any Person, any federal, state, local or foreign law (statutory, common or otherwise),
constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, determination, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Authority that is binding upon or
applicable to such Person, as amended unless expressly specified otherwise. 
 “Assignment and Assumption Agreement” means
an Assignment and Assumption Agreement between Buyer and Seller in substantially the form 

 attached hereto as Exhibit A with such changes as Buyer and Seller may agree upon, together with any other documents of
conveyance entered into pursuant to Section 2.09(c)(vi). 
 “Audited Balance Sheet” means the audited balance sheet of
the Business as of December 31, 2004. 
 “Balance Sheet Date” means December 31, 2004. 
 “Base Working Capital” means $199,000,000. 
 “Business” means the Control Business and the Sensor Business. The Business does not include the RFID Business. 
 “Business Day” means a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York and London, England are authorized or required by Applicable Law to close.

 “Business Employee” means any employee of Seller or any of its Subsidiaries or Affiliates who is employed primarily in
connection with the Business, (i) including, for the avoidance of doubt, the individuals named in Section 1.01(a)(i) of the Disclosure Schedule, but (ii) excluding the individuals named in Section 1.01(a)(ii) of the Disclosure
Schedule, and such employees of the Retained Businesses as Seller and Buyer may agree to treat as Business Employees prior to the Closing. 
 “Business Intellectual Property Rights” means the Business Patents and the Other Business Intellectual Property Rights. 
 “Business Patents” means the Patents listed in Section 2.02(h) of the Disclosure Schedule. 
 “Closing
Date” means the date on which the Closing occurs. The Closing shall be deemed to occur at 12:01 a.m. on the date that is the Closing Date. 
 “Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder. 
 “Competition Laws” means statutes, rules, regulations, orders, decrees, administrative and judicial doctrines, and other laws that are designed or intended to prohibit, restrict or regulate actions having the purpose or
effect of monopolization, lessening of competition or restraint of trade. 
 “Consent” means any authorization, approval,
order, license, qualification, permit, franchise, certification, waiver or other consent of any third Person or any Governmental Authority. 
  

 2 

 “Control Business” means the business conducted by the Controls business unit of Seller
and Seller’s Subsidiaries involving the design, development, sale, manufacturing and marketing of Control Products. 
 “Control
Products” means (i) electromechanical products designed to control heat, current or arcing, including in commercial and residential heating and air conditioning systems, refrigeration appliances, lighting, aerospace or industrial
products, and also including motor protectors, circuit breakers, lighting protection, arc-fault circuit protectors, precision switches, thermostats or semiconductor burn-in test sockets, (ii) electronic control modules or board level solutions
in heating, ventilation, air conditioning or refrigeration systems, including for gas ignition, defrost control, electric heat, fan sequencing, system monitoring, or compressor control and protection or (iii) control products intended for
applications addressed by products that are currently marketed or under development by the Controls business unit of Seller and its Subsidiaries. 
 “Cross License Agreement” means a Cross License Agreement between Buyer and Seller in the form attached hereto as Exhibit B. 
 “Current Product” means any (i) Sensor Product or Control Product, or any component thereof, that was manufactured, marketed, sold, offered for sale, distributed or otherwise transferred by the
Business, or with respect to which the Business has substantially completed its development efforts, as of the Closing Date and (ii) future Sensor Product, Control Product or component that is an extension, modification, derivation, replacement
or successor of such Sensor Product, Control Product or component and does not infringe or misappropriate Intellectual Property Rights of a third party in a manner that is materially different from its predecessor. 
 “Disclosure Schedule” means the disclosure schedule delivered by Seller to Buyer concurrently with the execution and delivery of this
Agreement and attached hereto. 
 “Economic Detriment” means (i) any Tax, penalty, cost, expense or other adverse
economic impact on Buyer or its Affiliates (including the Purchased Subsidiaries), except to the extent of invoiced out-of-pocket expenses for which Buyer is reimbursed by Seller on an after-tax basis, (ii) any restriction, reduction or other
impairment of any Purchased Subsidiary’s ability after the Closing Date directly or indirectly to dividend, distribute or otherwise repatriate cash (other than by reductions (but in any event not below zero) of statutory retained earnings
accrued and available for distributions prior to the Closing Date) or (iii) prior to the Closing any change in current assets (except cash) or liabilities from those consistent with historical levels maintained in the ordinary course of
business. Notwithstanding the foregoing, in connection with any transfer of Purchased Subsidiary Pre-Closing Cash pursuant to Section 2.06(a)(i) or 2.06(b)(ii), the reduction in cash by the amount transferred shall not in and of itself be
deemed an Economic Detriment. 
  

 3 

 “Employee Plan” means any “employee benefit plan”, as defined in
Section 3(3) of ERISA, and any employment, severance or similar contract, plan, arrangement or policy and each other plan or arrangement providing for cash or equity compensation, profit-sharing, incentive or deferred compensation, vacation
benefits, insurance (including any self-insured arrangements), health or medical benefits, disability or sick leave benefits and post-employment or retirement, or other benefits, in each case which is maintained, sponsored, administered or
contributed to by Seller or any Subsidiary of Seller (or any ERISA Affiliate of Seller or any Subsidiary of Seller) and (i) covers any current or former Business Employee who is based primarily in the United States, (ii) with respect to
which any Purchased Subsidiary has any material current or future Liability or (iii) which would otherwise constitute an Assumed Liability. 
 “Environmental Laws” means any Applicable Law as in effect on or prior to the Closing Date relating to the environment, pollutants, contaminants, wastes or chemicals or any toxic, radioactive, ignitable, corrosive, reactive
or otherwise hazardous substances, wastes or materials or to public or workplace health or safety. 
 “Environmental
Liabilities” means any and all Liabilities or commitments primarily arising in connection with or relating to the Business (as currently or previously conducted), the Purchased Assets, the Purchased Subsidiaries or any activities or
operations occurring or conducted at the Real Property, which arise under or relate to any Environmental Law. 
 “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder. 
 “ERISA Affiliate” of any entity means any other entity which, together with such entity, would be treated as a single employer under Section 414 of the Code. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Excluded Environmental Liabilities” means any Environmental Liabilities attributable or relating to, resulting from, or caused by
(i) any real property or facility now or previously owned, leased or operated by the Purchased Subsidiaries or by Seller or any Affiliate of the Seller with respect to the Business (other than (A) the Real Property, (B) except as
otherwise provided in clause (ii), the Kuala Lumpur, Malaysia facility currently shared by a Retained Business and the Business, but only to the extent arising out of the operation of the Business or (C) any other Purchased Asset, but only to
the extent arising out of the operation 
  

 4 

 of the Business); (ii) any Retained Business (including the Known Kuala Lumpur Contamination and any other
Environmental Liabilities to the extent arising from the conduct of any Retained Business at any facility currently shared by such Retained Business and the Business); and (iii) the offsite treatment, storage, disposal or arrangement for
disposal of hazardous substances, wastes or materials by Seller or any Affiliate of Seller with respect to the Business (including any such hazardous substances, wastes or materials generated in connection with operations upon the Real Property) or
by any Purchased Subsidiary, in each case prior to the Closing. 
 “Excluded Representations” means, as to Seller or Buyer,
as applicable, the representations set forth in Section 3.01 (Corporate Existence and Power), Section 3.02 (Corporate Authorization), Section 3.17 (Finders’ Fees), Section 4.01 (Corporate Existence
and Power), Section 4.02 (Corporate Authorization), Section 4.07 (Finders’ Fees) and Section 8.01 (Tax Matters). 
 “GAAP” means generally accepted accounting principles in the United States. 
 “Governmental Authority” means any transnational, domestic or foreign federal, state or local, governmental authority, department, court, agency or official, including any political subdivision thereof and any arbitral body
the decrees of which have the force of law. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended. 
 “Identified Environmental Liability” means Environmental Liabilities arising out of those matters described in
Section 3.20(b) of the Disclosure Schedule. 
 “Indebtedness” means (i) all obligations for borrowed money,
(ii) all obligations evidenced by notes, bonds, debentures or other instruments, (iii) all obligations under any hedging or swap obligation or other similar arrangement, (iv) all obligations (other than operating leases) secured by a
Lien on Purchased Assets or Assets of a Purchased Subsidiary, other than a Lien described in clause (i), (iii) or (iv) of the definition of Permitted Liens, (v) all obligations for the deferred purchase price of property or services
(other than current liabilities incurred in the ordinary course of business), (vi) all commitments by which a Person assures a creditor against loss (including contingent reimbursement obligations regarding letters of credit), (vii) all
obligations under capitalized leases, (viii) all guarantees (other than product warranties made in the ordinary course of business), including guarantees of any items set forth in clauses (i) through (vii), and (ix) all outstanding
prepayment premiums, if any, and accrued interest, fees and expenses related to any of the items set forth in clauses (i) through (ix). 
  

 5 

 “Intellectual Property Right” means any Patent, trademark, service mark, all goodwill
associated with each of such marks, trade name, trade dress, internet domain name, mask work, trade secret, copyright, know-how, software (including any registrations or applications for registration of any of the foregoing) or any other similar
type of proprietary intellectual property right and the right to sue and recover for any past, present, or future infringements or misappropriations thereof. 
 “International Plan” means any employment, severance or similar contract, plan, arrangement or policy and each other plan or arrangement providing for cash or equity compensation, profit-sharing,
incentive or deferred compensation, vacation benefits, insurance (including any self-insured arrangements), health or medical benefits, disability or sick leave benefits and post-employment or retirement benefits, in each case which is maintained,
administered or contributed to by Seller or any Subsidiary of Seller (or any Affiliate of Seller or any Subsidiary of Seller) and (i) covers any current or former Business Employee who is based primarily in a country other than the United
States, (ii) with respect to which any Purchased Subsidiary has any material Liability or (iii) which would otherwise constitute an Assumed Liability, and in any event is not an Employee Plan. 
 “knowledge of Seller,” “Seller’s knowledge” or any other similar knowledge qualification in this Agreement means
to the actual knowledge, after reasonable inquiry of appropriate personnel (including members of the legal department), of Thomas Wroe, Jr., Gene A. Carlone, Martha N. Sullivan, Robert E. Kearney, Dick Dane, Jim Armstrong or Donna Kimmel.

 “Known Kuala Lumpur Contamination” means conditions of contamination in the soil and groundwater identified prior to the
date hereof at, on or under the Kuala Lumpur, Malaysia facility currently shared by a Retained Business and the Business. 
 “Latest
Balance Sheet” means the unaudited balance sheet of the Business as of September 30, 2005. 
 “Leased Real
Property” means all of Seller’s and its Subsidiaries’ right, title and interest in all leases, subleases, licenses, concessions and other agreements (the “Leases”), pursuant to which Seller or one of its
Subsidiaries holds a leasehold or subleasehold estate in, or is granted the right to use or occupy, any land, buildings, structures, improvements, fixtures or other interest in real property used or held for use primarily by the Business, including
the right to all security deposits and other amounts and instruments deposited by or on behalf of Seller or one of its Subsidiaries thereunder. 
  

 6 

 “Leasehold Improvements” means all buildings, structures, improvements and fixtures
located on any Leased Real Property which are owned by Seller or one of its Subsidiaries, regardless of whether title to such buildings, structures, improvements or fixtures are subject to reversion to the landlord or other third party upon the
expiration or termination of the Lease for such Leased Real Property. 
 “Liability” means any liability, debt or obligation
of any kind, character, or description, and whether known or unknown, accrued, absolute, contingent or otherwise, and regardless of when asserted or by whom. 
 “License Side Agreement” means the License Side Agreement dated the date hereof between Seller and Buyer. 
 “Lien” means, with respect to any property or asset, any mortgage, lien, pledge, charge, security interest, option, right of first refusal, right of first offer or encumbrance in respect of such
property or asset. 
 “Material Adverse Effect” means a material adverse effect on the business, financial condition or
results of operations of the Business, except for any such effect (i) to the extent relating to any Excluded Asset or Excluded Liability and for which Buyer, its Subsidiaries and the Purchased Subsidiaries will have no Liability following the
Closing in accordance with the terms of this Agreement or (ii) resulting from or arising in connection with (A) the announcement of this Agreement or the consummation of the transactions specifically contemplated hereby, (B) changes
or effects affecting generally the industries in which the Business operates, (C) changes in Applicable Laws or accounting standards, principles or interpretations of general application, (D) changes in economic, regulatory or political
conditions generally or (E) changes attributable to actions or omissions of Buyer or any of its Affiliates, other than any action or omission specifically contemplated by this Agreement; provided that the changes or effects described in
clauses (B) through (D) shall be disregarded only to the extent that the effect or change is not disproportionately adverse to the Business compared to other Persons operating in the industries in which the Business operates, taking into
account the market position and geographic scope of the Business. 
 “MEMS Product” means a product integrating
(i) sensors, actuators and/or micromechanical elements and (ii) electronics, on a common silicon substrate; wherein such product is fabricated using a combination of integrated circuit process sequences (e.g., CMOS, Bipolar, or
BICMOS processes), and at least one substantial “micromachining” process step (wherein such “micromachining” process step is not a Semiconductor Process step). 
  

 7 

 “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder. 
 “Other Business Intellectual Property Rights” means all Intellectual Property Rights
(other than Patents) owned by Seller or any of its Subsidiaries and developed by, or used or held for use exclusively in, the Control Business or the Sensor Business (including any invention disclosure which is not the subject of a filing with the
United States Patent and Trademark Office (or foreign equivalent) as of the Closing Date). 
 “Owned Real Property” means
all land, together with all buildings, structures, improvements and fixtures located thereon, and all easements and other rights and interests appurtenant thereto owned by Seller or one of its Subsidiaries and used or held for use primarily by the
Business. 
 “Patent” means any issued patent or pending patent application (including any provisional patent application),
and any and all divisionals, continuations, continuations-in-part, reissues, renewals, reexaminations, and extensions thereof, any counterparts claiming priority therefrom, utility models, patents of importation/confirmation, supplementary
protection certificates, certificates of invention and similar statutory rights. 
 “Person” means an individual,
corporation, partnership, limited liability company, association, joint venture, trust or other entity or organization, including a Governmental Authority. 
 “Portfolio Cross-License” means a non-exclusive Patent cross-license covering at least a majority of Seller’s Patent portfolio and entered into in the normal course of Seller’s Patent
licensing business. 
 “Pre-Closing Tax Period” means (i) any Tax period ending on or before the Closing Date and
(ii) with respect to a Tax period that commences before but ends after the Closing Date, the portion of such period up to and including the Closing Date. 
 “Purchased Subsidiaries” means Texas Instrumentos Eletronicos do Brasil Limitada; Texas Instruments (Changzhou) Co., Ltd.; Texas Instruments (China) Company Limited; Texas Instruments Korea Limited
(“TI Korea”) and Texas Instruments Italia S.p.A (“TI Italia”). 
  

 8 

 “Purchased Subsidiary Liability” means any Liability of any Purchased Subsidiary which
would fall within the definition of an Excluded Liability were it a Liability of the Seller or a Retained Subsidiary. 
 “Replacement
Guarantee” means the guarantee to be entered into by Seller or a Subsidiary of Seller prior to the Closing Date in connection with the sale by Engineered Materials Solutions, Inc. of its contacts business to a joint venture of Checon
Corporation and Shivalik Bimetal Controls Ltd., such guarantee to be fully secured by collateral of such joint venture (and include reasonable mechanics for the guarantor from time to time to verify the adequacy of the collateral securing its
guarantee), limit the liability of the guarantor to $5 million and otherwise be in form and substance reasonably acceptable to Buyer (it being understood that Buyer shall be entitled to participate in the discussions with respect to the form and
substance of such guarantee on and after the date hereof and prior to the execution thereof). 
 “Representative” means,
with respect to any Person, such Person’s directors, officers, employees, counsel, financial advisors, auditors, agents and other authorized representatives. 
 “Retained Businesses” means all businesses now, previously or hereafter conducted by Seller or any of its Subsidiaries other than the Business. The Retained Businesses include the RFID Business.

 “Retained Subsidiaries” means all of the Subsidiaries of Seller other than the Purchased Subsidiaries. 
 “RFID Business” means the business of designing, developing, licensing, manufacturing, marketing and selling radio frequency
identification systems as conducted by Seller and its Subsidiaries. 
 “Securities Act” means the Securities Act of 1933, as
amended. 
 “Semiconductor Activities” means the design, development, use and distribution of (i) design, automation,
application or other software embodied in or operating on or in any way relating to the manufacture, or use of, any Semiconductor Product and (ii) application notes, reference designs, emulators, evaluation modules (EVMs), and marketing
materials directly relating to the sales, marketing or use of any Semiconductor Product. 
 “Semiconductor Process” means
any system, method, process, software or hardware, material, structure, apparatus, device, composition, or improvement, for or relating to the manufacture, assembly or test of a semiconductor device. 
  

 9 

 “Semiconductor Product” means any semiconductor product or other product made using a
Semiconductor Process, such as discretes, integrated circuits, MEMS Products and radio frequency identification products. Semiconductor Product also means chipsets or combinations of discretes and/or integrated circuits which are incorporated in
board-level products, or in assemblies or systems, but in any event does not mean any portion of any such board-level product, assembly or system which is not a chipset, discrete or integrated circuit. Semiconductor Products includes any software
which is incorporated in, or specific to any of the foregoing which are Semiconductor Products. 
 “Sensor Business” means
the business conducted by the Sensor business unit of Seller and Seller’s Subsidiaries involving the design, development, sale, manufacturing and marketing of Sensor Products (excluding the Tire Pressure Sensor Products). 
 “Sensor Products” means (i) pressure, position, force, gas or acceleration sensors or pressure switches, in each case for
transportation, industrial or heating, ventilation, air conditioning or refrigeration applications or (ii) sensor products intended for applications that are addressed by products currently marketed or under development by the Sensors business
unit of Seller and its Subsidiaries. 
 “Shares” means all of the outstanding shares of capital stock of, or other equity
interests in, the Purchased Subsidiaries. 
 “Subsidiary” means, with respect to any Person, any entity of which, and only
for so long as, securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person. 

“Tax” means (i) any tax, governmental fee or other like assessment or charge of any kind whatsoever (including withholding on
amounts paid to or by any Person), together with any interest, penalty, addition to tax or additional amount imposed by any Governmental Authority (a “Taxing Authority”) responsible for the imposition of any such tax (domestic or
foreign), or (ii) Liability for the payment of any amounts of the type described in (i) as a result of being party to any agreement or any express or implied obligation to indemnify any other Person. 
 “Tax Return” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including
any schedule or attachment thereto, and including any amendment thereof. 
  

 10 

 “Transaction Documents” means this Agreement, the Assignment and Assumption Agreement,
the Cross License Agreement, the License Side Agreement and the Transition Services Agreement. 
 “Transferred Indebtedness”
means the Indebtedness listed in Section 1.01(b) of the Disclosure Schedule. 
 “Transition Services Agreement” means a
Transition Services Agreement between Buyer and Seller in substantially the form attached hereto as Exhibit C with such changes as Buyer and Seller may agree upon. 
 (b) Each of the following terms is defined in the Section set forth opposite such term: 
  

			
	 Term
	  	Section
	 Accounting Referee
	  	2.08
	 Agreement
	  	Preamble
	 Allocation Methodology
	  	2.08
	 Alternative Transaction
	  	5.06
	 Apportioned Obligations
	  	8.02
	 Apportioned Ad Valorem Obligations
	  	8.02
	 Assumed Liabilities
	  	2.04
	 Baskets
	  	11.03
	 Business Covered Employees
	  	7.06
	 Buyer
	  	Preamble
	 Buyer Basket
	  	11.02
	 Buyer Cap
	  	11.02
	 Buyer Indemnified Party
	  	11.02
	 Buyer International Retirement Plan
	  	9.02
	 Buyer Retiree Medical Plan
	  	9.02
	 Buyer DB Plan
	  	9.02
	 Buyer DC Plan
	  	9.02
	 Buyer FSA Plan
	  	9.02
	 Buyer Welfare Plan
	  	9.02
	 Caps
	  	11.03
	 Certifications
	  	9.02
	 Closing
	  	2.09
	 Closing Statement
	  	2.10
	 Closing Working Capital
	  	2.10
	 Competing Business
	  	5.03
	 Confidentiality Agreement
	  	6.01
	 Contracts
	  	2.01
	 Controlling Party
	  	11.03
	 Current Representation
	  	7.07
	 Damages
	  	11.02

  

 11 

			
	 Term
	  	Section
	 DB Participants
	  	9.02
	 Debt Commitment Letter
	  	4.05
	 Debt Financing
	  	4.05
	 Designated Representative
	  	7.07
	 Disputed Item
	  	2.10
	 Environmental Matters
	  	11.03
	 Equity Commitment Letters
	  	4.05
	 Equity Financing
	  	4.05
	 Estimated Working Capital
	  	2.09
	 EU Employment Regulations
	  	9.02
	 Excluded Assets
	  	2.03
	 Excluded Liabilities
	  	2.05
	 Final Pension Amount
	  	9.02
	 Final Working Capital
	  	2.11
	 Financing
	  	4.05
	 Have Made Costs
	  	7.11
	 Indemnified Party
	  	11.03
	 Indemnifying Party
	  	11.03
	 Initial Pension Amount
	  	9.02
	 International Transfer Amount
	  	9.02
	 Non-Controlling Party
	  	11.03
	 Other Apportioned Obligations
	  	8.02
	 Permitted Liens
	  	3.13
	 Post-Closing Tax Period
	  	8.02
	 Potential Contributor
	  	11.05
	 PBGC
	  	9.02
	 Purchase Price
	  	2.08
	 Purchased Assets
	  	2.01
	 Purchased Subsidiary Pre-Closing Cash
	  	2.06
	 Purchased Subsidiary Securities
	  	3.06
	 Real Property
	  	3.13
	 Registered Business Intellectual Property Rights
	  	3.14
	 Relevant Period
	  	9.02
	 Required Consents
	  	3.05
	 Restructuring
	  	2.06
	 Sample Working Capital Calculation
	  	2.10
	 Seller
	  	Preamble
	 Seller Cap
	  	11.02
	 Seller DB Plan
	  	9.02
	 Seller DC Plan
	  	9.02
	 Seller Environmental Basket
	  	11.02
	 Seller FSA Plan
	  	9.02
	 Seller General Basket
	  	11.02

  

 12 

			
	 Term
	  	Section
	 Seller Indemnified Party
	  	11.02
	 Seller International Retirement Plan
	  	9.02
	 Seller Retiree Medical Plan
	  	9.02
	 Seller Trademarks and Tradenames
	  	2.03
	 Seller Welfare Plan
	  	9.02
	 Specified Matters
	  	11.02
	 Specified Policy
	  	5.05
	 Supplemental Financial Statements
	  	5.02
	 Third Party Buyers
	  	11.03
	 Third Party Claim
	  	11.03
	 Tire Pressure Sensor Products
	  	5.03
	 Transfer Taxes
	  	8.02
	 Transferred Cash
	  	2.03
	 Transferred Employees
	  	9.01
	 Transferred Employees (Non-U.S.)
	  	9.01
	 Transferred Employees (U.S.)
	  	9.01
	 VEBA
	  	9.02
	 WARN Act
	  	7.05
	 Warranty Breach
	  	11.02

 Section 1.02. Other Definitional and Interpretative Provisions. The words
“hereof”, “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The captions herein are included for
convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified.
All Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the
meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular. Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not they are in fact followed by those words or words of like import. When the words “not to be unreasonably withheld” are used in this
Agreement, they shall be deemed to be followed by the phrase “, conditioned or delayed”, whether or not they are in fact followed by that phrase or a phrase of like import. “Writing”, “written” and comparable terms
refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in
accordance with the terms hereof and thereof. References to any Person include the successors and permitted assigns of that Person. 
  

 13 

 References from or through any date mean, unless otherwise specified, from and including or through and including,
respectively. References to “law” or “laws” shall be deemed to include any and all Applicable Law. 
 ARTICLE 2

 PURCHASE AND SALE 
 Section 2.01. Purchase and Sale of the Shares. Upon the terms and subject to the conditions of this Agreement, Seller agrees to, and to cause
its Subsidiaries to, sell to Buyer, and Buyer agrees to purchase from Seller and its Subsidiaries, the Shares at the Closing. 
 Section 2.02. Purchase and Sale of the Purchased Assets. Except as otherwise provided below, upon the terms and subject to the conditions of this Agreement, Buyer agrees to purchase from Seller and the Retained Subsidiaries and
Seller agrees to, and to cause the Retained Subsidiaries to, sell, convey, transfer, assign and deliver, or cause to be sold, conveyed, transferred, assigned and delivered, to Buyer at the Closing, free and clear of any Liens, other than Permitted
Liens, all of Seller’s and the Retained Subsidiaries’ right, title and interest in, to and under all of the assets, rights, properties and business, of every kind and description, owned, held or used primarily in the conduct of the
Business by Seller or any of the Retained Subsidiaries as the same shall exist on the Closing Date, except for the Excluded Assets (the “Purchased Assets”). The Purchased Assets include all right, title and interest of Seller and
the Retained Subsidiaries in, to and under the following that are owned, held or used primarily in the conduct of the Business: 
 (a) the Owned Real Property and the Leased Real Property (including all Leasehold Improvements thereon) listed in Section 3.13 of the Disclosure Schedule; 
 (b) all personal property and interests therein (including machinery, equipment, furniture, office furnishings and vehicles) located at
(i) the Owned Real Property and Leased Real Property described in clause (a) above or (ii) that portion of any facility used by the Business other than such Owned Real Property or Leased Real Property; 
 (c) all raw materials, work-in-process, finished goods, supplies, spare parts, packaging and other inventories, except for work-in-process
and finished goods produced by any Retained Business for which the Business has not yet taken ownership in accordance with the commercial arrangements relating thereto, but including work-in-process and finished goods produced by the Business for
which the Retained Businesses have not yet taken ownership in accordance with the commercial arrangements relating thereto; 
  

 14 

 (d) all rights (including rights in respect of non-performance or breach) under all
contracts, agreements, leases, licenses (excluding Portfolio Cross-Licenses), commitments, sales and purchase orders and other instruments, including all contracts listed in Section 3.10 of the Disclosure Schedule (collectively, the
“Contracts”), including the capital lease relating to the Attleboro, Massachusetts facility; 
 (e) all trade
accounts receivable and other receivables; 
 (f) all prepaid assets; 
 (g) all of the Shares; 
 (h) all Business Intellectual Property Rights; 
 (i) all licenses, permits, qualifications or
other governmental authorizations transferable without consent of any Governmental Authority and such other licenses, permits, qualifications, or other governmental authorizations for which consent to transfer is obtained on or prior to (or,
pursuant to Section 2.07, after) the Closing Date; 
 (j) all books, records, files and papers, whether in hard copy or
computer format, including any information relating to any Tax imposed on the Purchased Assets or a Purchased Subsidiary; 
 (k) sales and promotional literature, customer lists, and other sales and marketing-related materials; and 
 (l) all
claims, causes of action, judgments, reimbursements and demands. 
 Section 2.03. Excluded Assets. Buyer expressly understands
and agrees that the following assets and properties of Seller and the Retained Subsidiaries (the “Excluded Assets”) shall be excluded from the Purchased Assets: 
 (a) all of Seller’s and the Retained Subsidiaries’ cash and cash equivalents on hand and in banks (except for such amounts, if
any, as the parties may agree will be retained by the Purchased Subsidiaries and not constitute Purchased Subsidiary Pre-Closing Cash (the “Transferred Cash”)); 
  

 15 

 (b) insurance policies relating to the Business and all claims, credits, causes of action
or rights thereunder (except for Buyer’s rights under Section 5.05); 
 (c) all Intellectual Property Rights (other
than the Business Intellectual Property Rights), including the marks and names set forth in Section 2.03 of the Disclosure Schedule (the “Seller Trademarks and Tradenames”), and including all royalties and/or other license
payments under any Portfolio Cross-License; 
 (d) all books, records, files and papers, whether in hard copy or computer
format, prepared in connection with this Agreement or the transactions contemplated hereby (other than confidentiality agreements with any Person relating to the Business, copies of which will be made available to Buyer at the Closing (it being
understood that the portion of such copies not relating to the Business may be redacted)) and all minute books and corporate records of Seller and the Retained Subsidiaries; 
 (e) the property and assets described in Section 2.03 of the Disclosure Schedule; 
 (f) all rights of Seller or any of the Retained Subsidiaries arising under the Transaction Documents or the transactions contemplated
thereby; 
 (g) all Purchased Assets sold or otherwise disposed of in the ordinary course of business during the period from
the date hereof until the Closing Date in compliance with the terms hereof; and 
 (h) all of Seller’s and the Retained
Subsidiaries’ claims for and rights to receive Tax refunds relating to the Business arising on or prior to the Closing Date. 
 Section 2.04. Assumed Liabilities. Upon the terms and subject to the conditions of this Agreement, Buyer agrees, effective at the time of the Closing, to assume all contracts and Liabilities of Seller or any of the Retained
Subsidiaries of any kind, character or description (whether known or unknown, accrued, absolute, contingent or otherwise) primarily relating to or arising out of the Purchased Assets or the conduct of the Business, except for the Excluded
Liabilities (the “Assumed Liabilities”), including the following: 
 (a) all Liabilities set forth on the
Latest Balance Sheet to the extent not satisfied prior to the Closing Date; 
  

 16 

 (b) subject to Section 2.07, all Liabilities of Seller or any of the Retained
Subsidiaries arising under the Contracts; 
 (c) all Environmental Liabilities (other than the Excluded Environmental
Liabilities); 
 (d) all Liabilities arising out of any action, suit, investigation or proceeding before any arbitrator or any
Governmental Authority, including all actions, suits, investigations and proceedings listed in Section 3.11 of the Disclosure Schedule; 
 (e) all Liabilities relating to any products manufactured or sold on or prior to the Closing Date, including warranty obligations and product Liabilities; 
 (f) all Liabilities and commitments assumed by Buyer, or for which Buyer is otherwise responsible, pursuant to Section 8.02;

 (g) the Transferred Indebtedness; and 
 (h) all Liabilities and commitments relating to current or former Business Employees, other than any such Liabilities and commitments that
are expressly excluded pursuant to Section 2.05(d). 
 Buyer’s obligations under this Section 2.04 shall not be subject to
offset or reduction, whether by reason of any actual or alleged breach of any representation, warranty or covenant contained in the Transaction Documents or any other agreement or document delivered in connection herewith or therewith or any right
to indemnification hereunder or otherwise. 
 Section 2.05. Excluded Liabilities. Buyer is assuming only the Assumed Liabilities
from Seller and the Retained Subsidiaries and is not assuming any other Liability of Seller or any of the Retained Subsidiaries of whatever nature, whether presently in existence or arising hereafter. All such other Liabilities shall be retained by
and remain Liabilities of Seller or the Retained Subsidiaries, as applicable (all such Liabilities not being assumed being herein referred to as the “Excluded Liabilities”), including the following (which shall be Excluded
Liabilities): 
 (a) all Liabilities to the extent arising out of or relating to the operation or conduct by Seller or any of
its Subsidiaries of any Retained Business; 
 (b) all Liabilities to the extent arising out of or relating to any Excluded
Asset; 
  

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 (c) all Liabilities and commitments in respect of Taxes, other than those Liabilities and
commitments for which Buyer is responsible pursuant to Section 8.02; 
 (d) all Liabilities and commitments relating to
(i) current or former employees of Seller, any of the Purchased Subsidiaries or any of the Retained Subsidiaries other than, in each case, Business Employees, (ii) current or former Business Employees (A) that are expressly retained
by Seller pursuant to Article 9 or Section 2.05(d) of the Disclosure Schedule or (B) for which a specific prepaid asset (e.g., an insurance policy), if any, is not sold, conveyed, transferred, assigned or delivered to Buyer, subject
to the terms and conditions of the applicable Employee Plan or International Plan (in the case of a Liability or commitment relating to an Employee Plan or International Plan); (iii) Business Employees who, as of the Closing Date, are on a
leave of absence resulting from a reduction in force or a “bridging” of age and/or service credit for purposes of an Employee Plan; (iv) compensation deferred by Business Employees prior to the Closing Date; (v) in respect of
former Business Employees, the Seller Supplemental Pension Plan and (vi) stock option and other equity-based compensation plans of Seller; 
 (e) all Indebtedness (other than the Transferred Indebtedness) including all Liabilities arising out of or relating to any guarantee or consignment arrangements involving Seller and Engineered Materials Solutions,
Inc., other than the Replacement Guarantee; 
 (f) all obligations to any broker, finder or agent for any investment banking
or brokerage fees, finders fees or commission relating to the transactions contemplated by this Agreement and any other fees and expenses for which Seller is responsible pursuant to Section 13.03; 
 (g) all indemnification obligations owed to any Person who is or was an officer or director of Seller or any Subsidiary prior to the
Closing in respect of actions or omissions occurring prior to the Closing; 
 (h) all Liabilities incurred in connection with
effecting the Restructuring (including Transfer Taxes and the cost of obtaining required consents from third parties); 
 (i)
all Excluded Environmental Liabilities; 
 (j) all obligations under employee benefit arrangements, employment agreements or
other similar arrangements which come due as a result of the transactions contemplated hereby, including any stay or transaction bonus; and 
  

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 (k) all Liabilities arising out of intentional violations of Applicable Law that are
punishable by a material criminal fine or imprisonment. 
 Section 2.06. Restructuring. (a) Prior to the Closing, Seller
shall cause: 
 (i) each Purchased Subsidiary to convey, transfer, assign and deliver to Seller or a Retained Subsidiary all
of such Purchased Subsidiary’s right, title and interest in, to and under (A) the assets, properties and business, of every kind and description, that are not owned, held or used primarily in the conduct of the Business by such Purchased
Subsidiary, including all right, title and interest of such Purchased Subsidiary in, to and under the assets and properties listed in Section 2.06(a)(i) of the Disclosure Schedule and (B) all cash and cash equivalents on hand and in banks
as of the close of business on the Business Day immediately prior to the Closing Date except for any Transferred Cash (the “Purchased Subsidiary Pre-Closing Cash”). All such assets, properties and business shall be deemed to be
Excluded Assets for all purposes of this Agreement. Notwithstanding anything to the contrary in this Section or elsewhere in this Agreement, prior to the Closing Seller shall not, and shall cause its Subsidiaries not to, directly or indirectly
convey, transfer, assign or deliver, nor enter into any transaction or series of transactions having the purpose or effect of directly or indirectly transferring, dividending, distributing or otherwise repatriating, any Purchased Subsidiary
Pre-Closing Cash, in each case to the extent such action or transaction would have any Economic Detriment; 
 (ii) all
contracts and Liabilities of each Purchased Subsidiary of any kind, character or description (whether known or unknown, accrued, absolute, contingent or otherwise) that do not primarily relate to or arise out of the conduct of the Business or which
are Purchased Subsidiary Liabilities, including all contracts and Liabilities listed in Section 2.06(a)(ii) of the Disclosure Schedule, to be assumed by Seller or a Retained Subsidiary. All of such contracts and Liabilities shall be deemed to
be Excluded Liabilities for all purposes of this Agreement; and 
 (iii) each Purchased Subsidiary to transfer to Seller or a
Retained Subsidiary (or otherwise terminate the employment of) any employee who is not a Business Employee. For the avoidance of doubt, all Liabilities and commitments relating to such employees shall be deemed to be Excluded Liabilities for all
purposes of this Agreement. 
 (b) If the transactions contemplated by Section 2.06(a) (the “Restructuring”) are not
completed on or prior to the Closing Date, then 
  

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 (i) the Closing shall nonetheless be consummated (unless the Restructuring has not been
consummated with respect to TI Korea, in which case the Closing shall not be consummated until the Restructuring with respect to TI Korea has been completed) and the Shares transferred to Buyer, but if the Restructuring has not been completed with
respect to TI Italia, then the Shares of TI Italia shall be retained by Seller and shall not be transferred to Buyer at the Closing; 
 (ii) each of Buyer and Seller shall, and shall cause its Subsidiaries to, use its reasonable efforts (but without the payment of money by Buyer) to complete the Restructuring as soon as reasonably practicable following the Closing Date,
including Buyer causing the Purchased Subsidiaries to implement arrangements (such as, for example, payment of dividends or the making of intercompany loans) to facilitate the transfer of any remaining Purchased Subsidiary Pre-Closing Cash to
Seller; provided that Buyer and its Affiliates (including the Purchased Subsidiaries) will not be required to take any action that would have an Economic Detriment. In addition, following the Closing Buyer shall, and shall cause the Purchased
Subsidiaries to, hold all Purchased Subsidiary Pre-Closing Cash in segregated accounts (and provide Seller with monthly statements for such accounts promptly following receipt thereof) and take reasonable steps to ensure that other cash of the
Business will not be comingled with the Purchased Subsidiary Pre-Closing Cash; 
 (iii) Seller shall receive the benefits of
each Excluded Asset and bear the burdens of ownership of each Excluded Liability with respect to which the Restructuring has not been completed prior to the Closing from and including the Closing Date to and including the date on which the
Restructuring is completed thereto (with any costs or expense associated with such arrangements incremental to what Buyer would bear had the Restructuring occurred at Closing to be borne by Seller); 
 (iv) if the Shares of TI Italia are not transferred to Buyer at the Closing in accordance with clause (i) above, (A) Buyer shall
receive the benefits and bear the burdens of ownership of the Business to the extent conducted by TI Italia from and including the Closing Date to and including the date on which such Shares are so transferred to Buyer (with any costs or expense
associated with such arrangements incremental to what Buyer would bear had the Restructuring occurred at the Closing to be borne by Seller) and (B) Seller shall transfer such Shares to Buyer (in the manner contemplated by
Section 2.09(c)(v)) without the payment by Buyer of any additional consideration therefor promptly following the completion of the Restructuring with respect to TI Italia; and 
  

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 (v) Seller and Buyer shall cooperate in a mutually agreeable manner and enter into such
amendments to the Transaction Documents and additional agreements as may be reasonably necessary so as to implement the foregoing. 
 Section 2.07. Limitation on Assignment of Purchased Assets. Anything in this Agreement to the contrary notwithstanding, this Agreement shall not constitute an agreement to assign any Purchased Asset or any right thereunder as to
which the transfer or attempted assignment, without obtaining any Consent of, or other action by, any third party or any Governmental Authority, would constitute a breach or in any way adversely affect the rights of Buyer or Seller or any of their
respective Affiliates thereunder or subject any of the foregoing to civil or criminal liability. Seller and Buyer will use their reasonable efforts (but without any payment of money by Buyer) to obtain the Consent of the other parties to any such
Purchased Asset or any claim or right or any benefit arising thereunder for the assignment thereof to Buyer as Buyer may request. If such Consent is not obtained, or if an attempted assignment thereof would be ineffective or would adversely affect
the rights of Seller or its Affiliates thereunder so that Buyer would not in fact receive all such rights, Seller and Buyer will cooperate in an arrangement reasonably acceptable to both parties under which Buyer would obtain the benefits and assume
the obligations thereunder in accordance with this Agreement in the same manner as if such Purchased Asset were transferred to Buyer at the Closing, including sub-contracting, sub-licensing, or sub-leasing to Buyer, or under which Seller would
enforce for the benefit of Buyer, with Buyer assuming Seller’s obligations, any and all rights of Seller or its Affiliates against a third party thereto (with any out-of-pocket incremental costs or expenses associated with such arrangements to
be borne by Seller). Seller will promptly pay to Buyer when received all monies received by Seller under any Purchased Asset or any claim or right or any benefit arising thereunder, except to the extent the same represents an Excluded Asset. Seller
will continue to use its reasonable efforts to obtain any such required Consent or approval, and promptly upon receipt of such Consent will transfer and assign such Purchased Asset and such rights therein to Buyer without the payment by Buyer of any
additional consideration. 
 Section 2.08. Purchase Price; Allocation of Purchase Price. (a) The purchase price for the
Purchased Assets and the Shares (the “Purchase Price”) is $3,000,000,000 (three billion dollars) in cash. The Purchase Price shall be paid as provided in Section 2.09 and shall be subject to adjustment as provided in Sections
2.09 and 2.11. Seller shall be treated as receiving a portion of the Purchase Price as agent for its Affiliates actually selling the Purchased Assets and the Shares consistent with the allocation of the Purchase Price pursuant to the Allocation
Statement. 
  

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 (b) As soon as practicable after the Closing, Buyer shall deliver to Seller a statement (the
“Allocation Statement”), allocating the Purchase Price (plus Assumed Liabilities, to the extent properly taken into account under Section 1060 of the Code) among the Purchased Assets and the Shares in accordance with
Section 1060 of the Code and the principles and methodology set forth and illustrated in Section 2.08 of the Disclosure Schedule (the “Allocation Methodology”); provided that the parties may agree to amend or adjust
such methodology to the extent that the parties mutually determine necessary to properly reflect the fair market value of the Purchased Assets and the Shares. If within 10 days after the delivery of the Allocation Statement Seller notifies Buyer in
writing that Seller objects to the allocation set forth in the Allocation Statement because it is inconsistent with the Allocation Methodology, Buyer and Seller shall use their best efforts to revise the allocation specified in the Allocation
Statement to the mutual satisfaction of Buyer and Seller within 20 days. In the event that Buyer and Seller are unable to resolve such dispute within 20 days, Buyer and Seller shall jointly retain Deloitte & Touche LLP (the
“Accounting Referee”) to resolve the disputed items and the Accounting Referee shall determine an allocation that is most consistent with the Allocation Methodology. Upon resolution of the disputed items, the allocation reflected on
the Allocation Statement shall be adjusted to reflect such resolution. The costs, fees and expenses of such Accounting Referee shall be borne equally by Buyer and Seller. If any Taxing Authority or other Governmental Authority requires a third party
appraisal of all or part of the Purchased Assets or the Shares, Buyer shall bear the responsibility for obtaining such appraisal and the allocation set forth on the Allocation Statement shall be adjusted to the extent necessary to reflect the
results of such appraisal. 
 (c) Seller and Buyer agree to (i) be bound by the Allocation Statement (as it may be adjusted as provided
in Section 2.08(b)) and (ii) act in accordance with the allocation established pursuant to Section 2.08(b) in the preparation, filing and audit of any Tax return (including filing Form 8594 with its federal income Tax return for the
taxable year that includes the date of the Closing). 
 (d) If an adjustment is made with respect to the Purchase Price pursuant to
Section 2.11, the Allocation Statement shall be adjusted by mutual agreement of the parties in accordance with Section 1060 of the Code and the Allocation Methodology. In the event that an agreement is not reached within 20 days after the
determination of Final Working Capital, any disputed items shall be resolved in the manner described in Section 2.08(b). Buyer and Seller agree to file any additional information return required to be filed pursuant to Section 1060 of the
Code and to treat the Allocation Statement as adjusted in the manner described in Section 2.08(b). 
  

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 (e) Not later than 30 days prior to the filing of their respective Forms 8594 relating to this
transaction, each party shall deliver to the other party a copy of its Form 8594. 
 Section 2.09. Closing. (a) The closing
(the “Closing”) of the purchase and sale of the Shares and the Purchased Assets and the assumption of the Assumed Liabilities hereunder shall take place at the offices of Davis Polk & Wardwell, 450 Lexington Avenue, New
York, New York, as soon as possible, but in no event later than five Business Days, after satisfaction (or, to the extent permitted by Applicable Law, waiver) of the conditions set forth in Article 10 (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the fulfillment or, to the extent permitted by Applicable Law, waiver of those conditions), or at such other time or place as Buyer and Seller may agree. 
 (b) At least five Business Days prior to the Closing Date, Seller shall deliver to Buyer a certificate setting forth Seller’s good faith estimate of
Closing Working Capital (such estimate, the “Estimated Working Capital”); provided that Estimated Working Capital shall not in any event exceed $200,000,000. 
 (c) At the Closing: 
 (i)
Buyer shall deliver to Seller, in immediately available funds by wire transfer to an account or accounts designated by Seller by notice to Buyer not later than two Business Days prior to the Closing Date, an amount equal to the Purchase Price
(A) plus, as an adjustment to the Purchase Price, if Estimated Working Capital exceeds Base Working Capital, the amount of such excess or (B) minus, as an adjustment to the Purchase Price, if Base Working Capital exceeds
Estimated Working Capital, the amount of such excess; 
 (ii) Seller and Buyer shall enter into the Transaction Documents
(other than this Agreement and the License Side Agreement); 
 (iii) Seller shall, or shall cause its Subsidiaries to, deliver
to Buyer certificates for the Shares (to the extent that the Shares are represented by certificates) duly endorsed or accompanied by stock powers duly endorsed in blank, with any required transfer stamps affixed thereto; 
 (iv) Seller shall deliver certificates, in form and substance reasonably satisfactory to Buyer, from Seller and its relevant Subsidiaries,
duly executed and acknowledged, certifying that the transactions contemplated by this Agreement are exempt from withholding under Section 1445 of the Code; 
  

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 (v) Seller shall deliver an opinion of its internal counsel, which opinion shall be in
customary form, subject to customary assumptions and exceptions and otherwise reasonably acceptable to Buyer, with respect to the corporate existence of Seller and the corporate authorization of Seller and non-contravention of Seller’s
organizational documents with respect to the execution, delivery and performance by Seller of the Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby; and 
 (vi) Seller shall, or shall cause its Subsidiaries to, deliver to Buyer such deeds, bills of sale, endorsements, consents, assignments and
other good and sufficient instruments of conveyance and assignment as the parties and their respective counsel shall deem reasonably necessary to vest in Buyer all right, title and interest in, to and under the Purchased Assets and to evidence
Buyer’s assumption of the Assumed Liabilities. 
 Section 2.10. Closing Statement. (a) As promptly as practicable, but
no later than 75 days, after the Closing Date, Seller will cause to be prepared and delivered to Buyer a closing statement (the “Closing Statement”) prepared in accordance with the Accounting Policies, with such adjustments as are
set forth in Section 2.10(a) of the Disclosure Schedule, and setting forth the current portion of a balance sheet for the Business as of the Closing and Seller’s calculation of Closing Working Capital as of the close of business on the
date immediately preceding the Closing Date. “Closing Working Capital” means, with respect to the Business, the excess of (i) Transferred Cash, accounts receivable, inventory and prepaid expenses and other current assets of the
Business that constitute either Purchased Assets or assets of the Purchased Subsidiaries that are not Excluded Assets, less (ii) accounts payable, accrued expenses and other current liabilities of the Business that constitute
(A) Assumed Liabilities, (B) payables, expenses or liabilities of the Purchased Subsidiaries that are not Excluded Liabilities or Purchased Subsidiary Liabilities or (C) payables, expenses or Liabilities for social security and other
employee taxes and value added, sale and use taxes of the Purchased Subsidiaries, excluding the effect (including the Tax effect) of any act, event or transaction after the Closing not in the ordinary course of business of the Business and any
provision for deferred income Tax assets or liabilities. Section 2.10(a) of the Disclosure Schedule (the “Sample Working Capital Calculation”) sets forth, for illustrative purposes only, an example of the calculation of Closing
Working Capital as of December 31, 2004. 
 (b) If Buyer disagrees with Seller’s calculation of Closing Working Capital delivered
pursuant to Section 2.10(a), Buyer may, within 45 days after delivery of the documents referred to in Section 2.10(a), deliver a notice to Seller disagreeing with such calculation and which specifies Buyer’s calculation of such amount
and, in reasonable detail, Buyer’s grounds for such disagreement. Any such notice of disagreement shall specify those items or amounts as to which 
  

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 Buyer disagrees (each, a “Disputed Item”), and Buyer shall be deemed to have agreed with all other items
and amounts contained in the Closing Statement and the calculation of Closing Working Capital delivered pursuant to Section 2.10(a). 
 (c) If a notice of disagreement shall be duly delivered pursuant to Section 2.10(b), Buyer and Seller shall, during the 15 days following such delivery, use their reasonable efforts to reach agreement on the Disputed Items or amounts
in order to determine Closing Working Capital. If Buyer and Seller are unable to reach such agreement during such period, they shall promptly thereafter jointly retain the Accounting Referee and cause the Accounting Referee promptly to review this
Agreement and the Disputed Items for the purpose of calculating Closing Working Capital. In making such calculation, the Accounting Referee shall consider only the Disputed Items, and the determination of the Accounting Referee with respect to each
Disputed Item shall be an amount within the range established with respect to such Disputed Item by Seller’s calculation delivered pursuant to Section 2.10(a), on the one hand, and Buyer’s calculation delivered pursuant to
Section 2.10(b), on the other hand. The Accounting Referee shall deliver to Buyer and Seller, as promptly as practicable, a report setting forth such calculation. Such report shall be final and binding upon Buyer and Seller (absent manifest
error). The cost of such review and report shall be borne (i) by Seller if the difference between Final Working Capital and Closing Working Capital as set forth in Seller’s calculation of Closing Working Capital delivered pursuant to
Section 2.10(a) is greater than the difference between Final Working Capital and Closing Working Capital as set forth in Buyer’s calculation of Closing Working Capital delivered pursuant to Section 2.10(b), (ii) by Buyer if the
first such difference is less than the second such difference and (iii) otherwise equally by Buyer and Seller. 
 (d) Buyer and Seller
agree that they will cooperate and assist in the preparation of the Closing Statement and the calculation of Closing Working Capital and in the conduct of the reviews referred to in this Section 2.10, including by making available to the other
party and its Representatives, to the extent reasonably requested, reasonable access to books, records, work papers, personnel and Representatives in connection with such party’s review and preparation of the Closing Statement. If Seller fails
to substantially comply in a timely manner with requests made by Buyer pursuant to the immediately preceding sentence, the 45-day objection period referred to in Section 2.10(b) shall be extended for such period of time as is reasonably
necessary to enable Buyer to complete its review of the Closing Statement. 
 Section 2.11. Adjustment of Purchase Price.
(a) If Estimated Working Capital exceeds Final Working Capital, Seller shall pay to Buyer, as an adjustment to the Purchase Price, in the manner and with interest as provided in Section 2.11(b), the amount of such excess. If Final Working
Capital exceeds Estimated Working Capital, Buyer shall pay to Seller, in the manner and with 
  

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 interest as provided in Section 2.11(b), the amount of such excess. “Final Working Capital” means
Closing Working Capital (i) as shown in Seller’s calculation delivered pursuant to Section 2.10(a) if no notice of disagreement with respect thereto is duly delivered pursuant to Section 2.10(b); or (ii) if such a notice of
disagreement is delivered, (A) as agreed by Buyer and Seller pursuant to Section 2.10(c) or (B) in the absence of such agreement, as shown in the Accounting Referee’s calculation delivered pursuant to Section 2.10(c);
provided that in no event shall Final Working Capital be more than Seller’s calculation of Closing Working Capital delivered pursuant to Section 2.10(a) or less than Buyer’s calculation of Closing Working Capital delivered
pursuant to Section 2.10(b). 
 (b) Any payment pursuant to Section 2.11(a) shall be made at a mutually convenient time and place
within 10 days after Final Working Capital has been determined by delivery by Buyer or Seller, as the case may be, by wire transfer of immediately available funds to such account or accounts of such other party as may be designated by such other
party. The amount of any payment to be made pursuant to this Section 2.11 shall bear interest from and including the Closing Date to but excluding the date of payment at a rate per annum equal to the Prime Rate as published in The Wall
Street Journal in effect as of the Closing Date. Such interest shall be payable at the same time as the payment to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days elapsed. 
 ARTICLE 3 
 REPRESENTATIONS
AND WARRANTIES OF SELLER 
 Except as set forth in the Disclosure Schedule,
Seller represents and warrants to Buyer, as of the date hereof and as of the Closing, that: 
 Section 3.01. Corporate Existence and
Power. Seller is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all corporate powers and all material governmental licenses, authorizations, permits, consents
and approvals required to carry on the Business as now conducted. 
 Section 3.02. Corporate Authorization. The execution,
delivery and performance by Seller of the Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby are within Seller’s corporate powers and authority and have been duly authorized by all
necessary corporate action on the part of Seller. This Agreement has been duly and validly executed and delivered by Seller and constitutes a valid and binding agreement of Seller. Each other Transaction Document will be duly and validly executed by
Seller at or prior to the Closing and, upon such execution and delivery by Seller 
  

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 and the due and valid execution and delivery of such Transaction Document by each other party thereto, will constitute a
valid and binding agreement of Seller, enforceable against Seller in accordance with its terms. 
 Section 3.03. Governmental
Authorization. The execution, delivery and performance by Seller of the Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby require no action by or in respect of, or filing with, any
Governmental Authority other than (i) compliance with any applicable requirements of the HSR Act, any other Competition Laws and the 1934 Act and (ii) any such action or filing as to which the failure to make or obtain would not be
material to the Business. 
 Section 3.04. Noncontravention. The execution, delivery and performance by Seller of the Transaction
Documents to which it is a party and the consummation of the transactions contemplated thereby do not and will not (i) violate the certificate of incorporation or bylaws of Seller or any Subsidiary, (ii) assuming compliance with the
matters referred to in Section 3.03, violate any Applicable Law in any material respect, (iii) assuming the obtaining of all Required Consents, constitute a default under or give rise to any right of termination, cancellation or
acceleration of any right or obligation or to a loss of any benefit relating to the Business to which Seller or any of its Subsidiaries is entitled under any provision of any agreement or other instrument binding upon Seller or any of its
Subsidiaries, except for such matters as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or (iv) result in the creation or imposition of any Lien on any Purchased Asset, except for Permitted
Liens. 
 Section 3.05. Required Consents. Section 3.05 of the Disclosure Schedule sets forth each agreement required to be
set forth in Section 3.10(a) of the Disclosure Schedule requiring a consent or other action by any Person as a result of the execution, delivery and performance of this Agreement (the “Required Consents”). 
 Section 3.06. Purchased Subsidiaries. (a) Each Purchased Subsidiary is duly organized and validly existing under the laws of its
jurisdiction of organization and has all organizational powers and all material governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted. 
 (b) All of the Shares are owned beneficially and of record by Seller and its Subsidiaries, free and clear of any Lien, and Seller or its Subsidiaries, as
applicable, will transfer and deliver to Buyer at the Closing valid title to the Shares free and clear of any Lien. There are no outstanding (i) securities of Seller or any Subsidiary convertible into or exchangeable for shares of capital stock
or voting securities of any Purchased Subsidiary or (ii) options or other rights to 
  

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 acquire from Seller or any Purchased Subsidiary, or other obligation of Seller or any Subsidiary to issue, any capital
stock, voting securities or securities convertible into or exchangeable for capital stock or voting securities of any Purchased Subsidiary (the items in clauses 3.06(b)(i) and 3.06(b)(ii) being referred to collectively as the “Purchased
Subsidiary Securities”). There are no outstanding obligations of Seller or any Subsidiary to repurchase, redeem or otherwise acquire any outstanding Purchased Subsidiary Securities. No applicable securities law was violated in connection
with the offering, sale or issuance of the Shares to Seller or any of its Subsidiaries. None of the Shares have been issued in violation of, and none are subject to, any purchase option, call, right of first refusal, preemptive, subscription, or
other similar right. Neither the Seller nor any of its Subsidiaries is party to any arrangement granting to any Person any stock appreciation, phantom stock or other similar right with respect to the Shares or the Purchased Subsidiaries. 

Section 3.07. Financial Statements. The audited balance sheets as of December 31, 2003 and December 31, 2004 and the related
audited statements of income and cash flows for the years ended December 31, 2003 and December 31, 2004, and the unaudited interim balance sheet as of September 30, 2005 and the related unaudited interim statements of income and cash
flows for the nine months ended September 30, 2005 for the Business, true and complete copies of which are set forth in Section 3.07 of the Disclosure Schedule, together with the Supplemental Financial Statements delivered pursuant to
Section 5.02(a), fairly present, in conformity with GAAP applied on a consistent basis and the books and records of the Business (except as may be indicated in the notes thereto), the financial position of the Business as of the dates thereof
and its results of operations and cash flows for the periods then ended (subject to normal year-end adjustments and the absence of notes in the case of any unaudited interim financial statements, none of which would be, individually or in the
aggregate, material). 
 Section 3.08. Absence of Certain Changes. Since the Balance Sheet Date, the Business has been conducted
in the ordinary course consistent with past practices and there has not been: 
 (a) any event, occurrence or development
which, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect; 
 (b) any
incurrence, assumption or guarantee by Seller or any of its Subsidiaries of any Indebtedness with respect to the Business other than in the ordinary course of business consistent with past practices; 
  

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 (c) any creation or other incurrence of any Lien on any material Purchased Asset or any
material asset of any Purchased Subsidiary other than Permitted Liens; 
 (d) any transaction or commitment made, or any
contract or agreement entered into, by Seller or any of its Subsidiaries relating to and material to the Business, other than transactions and commitments in the ordinary course of business consistent with past practices and those contemplated by
the Transaction Documents; 
 (e) any material change in any method of accounting or accounting practice by Seller or any of
its Subsidiaries with respect to the Business except for any such change required by reason of a concurrent change in GAAP; 
 (f) any (i) employment, deferred compensation, severance, retirement or other similar agreement entered into with any (A) executive Business Employee or (B) any non-executive Business Employee whose annual base salary exceeds
$125,000 (or any amendment to any such existing agreement), (ii) grant of any severance or termination pay to any such Business Employee or (iii) increase in compensation payable to any such Business Employee, in each case for
non-executive Business Employees other than in the ordinary course of business consistent with past practices; 
 (g) any
material damage, casualty, or loss with respect to any of the Purchased Assets in excess of $3,000,000, other than those covered by insurance; 
 (h) any sale, transfer, lease, license, or other disposal of any assets of the Business or of any Purchased Subsidiary for an amount in excess of $3,000,000, other than the sale of inventory and obsolete equipment in
the ordinary course of business consistent with past practice; 
 (i) any material reduction in capital expenditures relative
to the capital expenditure budget in a manner inconsistent with past practices; 
 (j) any acceleration of collection of
accounts receivable or delaying of payment of accounts payable, in each case in any material respect and other than in the ordinary course of business consistent with past practice; 
  

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 (k) any extension of Indebtedness to any Person in connection with the Business in excess
of $5,000,000 in the aggregate other than the creation of accounts receivable in the ordinary course of Business; or 
 (l)
any amendment, termination, cancellation, or compromise or any material claims relating to the Business, or waiver of any right that is material to the Business. 
 Section 3.09. No Undisclosed Material Liabilities. There are no Liabilities of the Seller or its Subsidiaries (including the Purchased Subsidiaries) relating to or arising out of the Purchased Assets or
the conduct of the Business, that in each case would constitute Assumed Liabilities at the Closing or any Purchased Subsidiary Liability, of any kind, other than: 
 (a) Liabilities provided for in the Latest Balance Sheet or disclosed in the notes thereto; 
 (b) Liabilities disclosed in the Disclosure Schedule; 
 (c) Liabilities arising in the ordinary course of business in accordance with the terms of any contract or agreement binding upon the
Business; 
 (d) Liabilities (other than for tort) incurred in the ordinary course of business since the date of the Latest
Balance Sheet; and 
 (e) other undisclosed Liabilities which, individually or in the aggregate, are not material to the
Business; 
 provided that Seller shall have no liability under this Section 3.09 with respect to any subject matter as to which another Section
in this Article 3 (other than Section 3.11) contains a specific representation. 
 Section 3.10. Material Contracts.
(a) With respect to the Business, neither Seller nor any of its Subsidiaries is a party to or bound by: 
 (i) any lease
(whether of real or personal property) requiring (A) annual rentals of $5,000,000 or more or (B) aggregate payments by or to Seller and its Subsidiaries of $10,000,000 or more, in the case of each of clauses (A) and (B) that
cannot be terminated on not more than 120 days’ notice without payment by any of Seller or its Subsidiaries of any material penalty; 
 (ii) except for the agreements described in clause (iii) below, any agreement for the purchase of materials, supplies, goods, services, equipment or other assets, or any other agreement under which either
(A)
  

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 since January 1, 2005 there have been payments to or by Seller or any of its Subsidiaries of
$5,000,000 or more or (B) aggregate payments to or by Seller or any of its Subsidiaries of $10,000,000 or more are required, in each case that cannot be terminated on not more than 120 days’ notice without payment by Seller or any of its
Subsidiaries of any material penalty; 
 (iii) except for the agreements described in clause (ii) above, any sales,
distribution or other similar agreement providing for the sale to or by Seller or any of its Subsidiaries of materials, supplies, goods, services, equipment or other assets under which since January 1, 2005 there have been payments by or to
Seller or any of its Subsidiaries of $5,000,000 or more; 
 (iv) any material partnership, joint venture or other similar
agreement or arrangement; 
 (v) any agreement relating to the acquisition or disposition of any business (whether by merger,
sale of stock, sale of assets or otherwise) or any assets involving consideration in excess of $5,000,000, except for purchases of inventory, capital expenditures or sales of inventory or obsolete equipment, in each case in the ordinary course of
business consistent with past practices; 
 (vi) any agreement relating to the incurrence of Indebtedness, except any such
agreement (A) with an aggregate outstanding principal amount not exceeding $5,000,000 or (B) entered into subsequent to the date of, and not in violation of, this Agreement; 
 (vii) any material agreement between the Business on the one hand, and other business units of Seller or any Affiliate of Seller, on the
other hand, that will not be terminated at or prior to the Closing without creation of any liability that would be an Assumed Liability; 
 (viii) any employment, deferred compensation, severance, retirement or other similar agreement entered into with any executive Business Employee or any other Business Employee whose annual base salary exceeds
$125,000; 
 (ix) any agreement relating to the extension of Indebtedness to, or the making of an equity investment in, any
Person, in each case in excess of $5 million in the aggregate, other than the creation of accounts receivable in the ordinary course of business; 
  

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 (x) any agreement that limits in any material respect the freedom of the Business to
compete in any line of business or with any Person or in any area, other than confidentiality agreements entered into in the ordinary course of business consistent with past practice; or 
 (xi) any other agreement not required to be disclosed pursuant to clauses (i) through (x) above the termination or lapse of
which would reasonably be expected to have a Material Adverse Effect. 
 (b) Each Contract required to be set forth in Section 3.10 of
the Disclosure Schedule is a valid and binding agreement of Seller or its applicable Subsidiary, and, to the knowledge of Seller, the other parties thereto and is in full force and effect. None of Seller or any of its Subsidiaries or, to the
knowledge of Seller, any other party thereto is in default or breach in any respect under the terms of any such Contract, except for any such defaults or breaches which would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. 
 Section 3.11. Litigation. There is no action, suit, investigation or proceeding pending by or
against, or to the knowledge of Seller, threatened by or against or affecting, the Business or any Purchased Asset or asset of a Purchased Subsidiary before any arbitrator or any Governmental Authority, which would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, and neither Seller nor its Subsidiaries is bound by any outstanding material order, injunction, judgment, arbitration award, or ruling that is material to the Business. 
 Section 3.12. Compliance with Laws and Court Orders. Neither Seller nor any of its Subsidiaries is in, or has during the previous three years
been in, violation of any Applicable Law relating to the Purchased Assets, the Purchased Subsidiaries or the conduct of the Business, except for violations that have not had and would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. 
 Section 3.13. Properties; Liens. (a) Section 3.13 of the Disclosure Schedule
lists the street addresses of all Owned Real Property and all Leased Real Property (the “Real Property”). 
 (b) Seller or a
Subsidiary of Seller, as the case may be, has good and, subject to Permitted Liens, marketable title to all Owned Real Property and all Leasehold Improvements and a valid leasehold interest in all Leased Real Property. Seller or a Subsidiary of
Seller, as the case may be, has good and marketable title, or a valid leasehold interest in, all Purchased Assets and all assets of the Purchased Subsidiaries which constitute personal property, except for properties and assets sold since the
Balance Sheet Date in the ordinary course of business consistent with past practices or where the failure to have such good title or valid leasehold interests would not, be material to the Business. 
  

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 (c) No Purchased Asset or asset of a Purchased Subsidiary is subject to any Lien, except for: 

(i) Liens disclosed in Section 3.13 of the Disclosure Schedule; 
 (ii) Liens disclosed on the Latest Balance Sheet or notes thereto or securing liabilities reflected on the Latest Balance Sheet or notes
thereto; 
 (iii) Liens for Taxes, assessments and similar charges that are not yet due or are being contested in good faith;

 (iv) mechanic’s, materialman’s, carrier’s, repairer’s and other similar Liens arising or incurred in
the ordinary course of business for amounts that are not yet due and payable or are being contested in good faith; or 
 (v)
other Liens that do not materially interfere with the use of any Owned Real Property or any other asset that is material to the Business (clauses (i) - (v) of this Section 3.13(c) are, collectively, the “Permitted Liens”).

 (d) All of the Purchased Assets and all assets of the Purchased Subsidiaries are in good operating condition and repair, ordinary wear and
tear excepted, other than such states of disrepair which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 Section 3.14. Intellectual Property. (a) Section 3.14(a) of the Disclosure Schedule contains a list of all registrations and applications for registration included in the Business Intellectual
Property Rights (the “Registered Business Intellectual Property Rights”) and all material licenses (other than the Portfolio Cross-Licenses) or other material agreements relating to the Business Intellectual Property Rights that are
included in the Purchased Assets. 
 (b)(i) Seller or a Subsidiary of Seller owns or has a valid right to use the Business Intellectual
Property Rights, (ii) no proceedings have been instituted, are pending or, to the knowledge of Seller, threatened which challenge any rights in respect of any of the Business Intellectual Property Rights or the validity thereof or assert that
the operation of the Business infringes the Intellectual Property Rights of any other Person, and (iii) none of the Business Intellectual Property Rights, as used by Seller or its Subsidiaries, or the conduct of the Business as it is currently
conducted by Seller or its Subsidiaries infringes upon the Intellectual Property Rights (other than Patents) of others or, to the knowledge of Seller, the Patents of others. 
  

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 (c) No Business Intellectual Property Right is subject to any outstanding judgment, injunction, order,
decree or agreement restricting the use thereof by Seller (or Buyer, to Seller’s knowledge) with respect to the Business or restricting the licensing (except for such restrictions as exist by reason of the Portfolio Cross-Licenses and the
Cross-License Agreement) thereof by Seller (or Buyer, to Seller’s knowledge) to any third party. 
 (d) The Business Intellectual
Property Rights together with the Intellectual Property Rights licensed to Buyer pursuant to the Cross License Agreement constitute all of the Intellectual Property Rights other than Patents and, to the knowledge of Seller, all Patents, used by the
Business as currently conducted by Seller and its Subsidiaries and, together with those rights and services to be provided by Seller to Buyer pursuant to the Transition Services Agreement, are Intellectual Property Rights other than Patents and, to
the knowledge of Seller, Patents sufficient for Buyer to conduct the Business as currently conducted. 
 Section 3.15. Sufficiency of
Purchased Assets. The Purchased Assets together with the property and assets of the Purchased Subsidiaries (other than those that Seller contemplates transferring out of a Purchased Subsidiary pursuant to Section 2.06(a)(i)) constitute all
of the property and assets (tangible and intangible, but excluding all Intellectual Property Rights) used or held for use primarily in the conduct of the Business by Seller or any of its Subsidiaries as it is conducted as of the date hereof except
for the Excluded Assets, and, together with the services, occupancy and other rights to be provided to Buyer pursuant to the Transition Services Agreement, are adequate in all material respects for Buyer to conduct the Business as currently
conducted by Seller and its Subsidiaries. No representations or warranties are made under this Section 3.15 with respect to Intellectual Property Rights, which are exclusively the subject of Section 3.14. For purposes of Article 11, the
accuracy of the representations and warranties in Section 3.14(d) and this Section 3.15 shall be determined without exception or carve-out for the failure to obtain any Consent from any third party or Governmental Authority, whether or not
the requirement therefor is disclosed in the Disclosure Schedule; provided that Buyer shall have complied in all material respects with its obligations pursuant to Sections 2.07 and 7.01 with respect to the obtaining of such Consent.

 Section 3.16. Permits. Seller and its Subsidiaries possess all material permits, approvals, orders authorizations, consents,
licenses, certificates, franchises, exemption of, or filings or registrations with, or issued by, any Governmental Authority necessary for the operation of the Business as currently conducted. 
  

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 Section 3.17. Finders’ Fees. Except for Morgan Stanley & Co. Incorporated and
Lazard Frères & Co. LLC, each of whose fees will be paid by Seller, there is no investment banker, broker, finder or other intermediary which has been retained by or is authorized to act on behalf of Seller who might be entitled to
any fee or commission in connection with the transactions contemplated by the Transaction Documents for which Buyer or any of its Affiliates would be responsible. 
 Section 3.18. Employee Benefit Plans. (a) Seller has made available to Buyer copies of (i) each material Employee Plan together with the most recent annual report (Form 5500 including, if
applicable, Schedule B thereto) and Form 990, if applicable, prepared in connection with any such plan and (ii) each material International Plan. Section 3.18 of the Disclosure Schedule sets forth a list of all the material Employee
Plans and material International Plans. 
 (b) None of Seller, any Subsidiary of Seller, any of their ERISA Affiliates or any predecessor
thereof, maintains, administers or contributes to, or has in the past maintained, administered or contributed to, any Employee Plan subject to Title IV of ERISA. 
 (c) None of Seller, any Subsidiary of Seller, any of their ERISA Affiliates or any predecessor thereof contributes to, or has in the past contributed to, any multiemployer plan, as defined in Section 3(37) of
ERISA. 
 (d) Each Employee Plan which is intended to be qualified under Section 401(a) of the Code has received a favorable
determination letter, or has pending or has time remaining in which to file, an application for such determination from the Internal Revenue Service, and to the knowledge of Seller there is no reason why any such determination letter should be
revoked or not be reissued. Seller has made available to Buyer copies of the most recent Internal Revenue Service determination letters with respect to each such Employee Plan. Each Employee Plan has been maintained, funded and administered in
compliance with its terms and with any Applicable Law, except for instances of non-compliance as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. With respect to each Employee Plan, all
contributions and premium payments that are due have been made within the time periods prescribed by ERISA and the Code, except for any such contribution or payment which the failure to make would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. No events have occurred with respect to any Employee Plan that could result in payment or assessment by or against the Business, any Purchased Asset or any Purchased Subsidiary, or Buyer or any of its
Affiliates of any excise taxes under Sections 4972, 4975, 4976, 4977, 4979, 4980B, 4980D, 4980E or 5000 of the Code, except for excise taxes as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

  

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 (e) No Purchased Subsidiary has any material Liability under Section 302 or Title IV of ERISA or
Section 412 of the Code. None of Seller, any Retained Subsidiary or any of their ERISA Affiliates has any material Liability under Section 302 or Title IV of ERISA or Section 412 of the Code that could become a material Liability of
Buyer, any Purchased Subsidiary or any of their Affiliates. 
 (f) Seller has (or has caused its Subsidiaries to have) performed all
obligations required with respect to each International Plan, except for any such obligation as to which the failure to perform would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each International
Plan has been maintained in compliance with its terms and with any Applicable Law, except for instances of non-compliance as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. All payments
(including premiums due) and all employer and employee contributions required to have been collected in respect of each International Plan have been paid when due, or if applicable, accrued on the balance sheet of Seller and its Affiliates, except
for any such payment, contribution or accrual as to which the failure to make would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 Section 3.19. Employee and Labor Matters. (a) To the knowledge of Seller, no Business Employee whose annual base salary exceeds $125,000
(i) has any present intention to terminate his or her employment with the Business within 12 months of the Closing Date, or (ii) is a party to any confidentiality, non-competition, proprietary rights or other such agreement with any other
Person besides the Seller or any of its Subsidiaries, as applicable, that would be material to the performance of his or her employment duties. 
 (b)(i) Neither the Seller nor any of its Subsidiaries is party to any collective bargaining agreement with respect to the Business or any Business Employee; (ii) no union organizing efforts are underway or, to the knowledge of the
Seller, threatened, and no other question concerning labor representation exists with respect to the Business or any Business Employee; and (iii) no material labor dispute has occurred in the past three years, and no material labor dispute is
underway or, to the knowledge of the Seller, threatened, in each case with respect to the Business. 
 Section 3.20. Environmental
Compliance. Except as to matters that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect: 
 (a)(i) no written notice, order, request for information, complaint or penalty has been received by Seller or any of its Subsidiaries, and (ii) there are no judicial, administrative or other actions, suits or

  

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 proceedings pending or threatened, in the case of each of (i) and (ii), which allege a violation of
any Environmental Law or allege the existence of any Environmental Liabilities and relate to the Purchased Assets, the Business or the assets of the Purchased Subsidiaries; and 
 (b) Seller and its Subsidiaries have obtained or caused to be obtained all environmental permits necessary for the operation of the
Purchased Assets, the Business and the assets of the Purchased Subsidiaries to comply with all applicable Environmental Laws and Seller and its Subsidiaries are in compliance, and have for the previous three years been in compliance, with the terms
of such permits and, with respect to the operation of the Purchased Assets, the Business and the assets of the Purchased Subsidiaries, with all other applicable Environmental Laws; 
 (c) With respect to the Purchased Assets, the Business, or the assets of the Purchased Subsidiaries, none of Seller or its Subsidiaries
has at any time prior to the Closing treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled, released, or exposed any Person to, any hazardous substance, material or waste, and no hazardous substances, waste or
material at any time prior to the Closing has been released at, on, under or from any Real Property, in each case so as to give rise to any material Liability, including any such liability for response costs, corrective action costs, personal
injury, property damage, natural resources damages or attorney fees or material investigative, corrective or remedial obligations, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, or any other
Environmental Law; and 
 (d) Seller has furnished to Buyer all environmental audits and other written assessments and reports
bearing on material environmental liabilities, in each case relating to the current operations and facilities of the Business and which are in its or its Subsidiaries’ possession or under its or their reasonable control. 
 Section 3.21. Insurance. Section 3.21 of the Disclosure Schedule lists and briefly describes the material components of the insurance
coverage maintained and owned by Seller with respect to the Business. All of such insurance policies are in full force and effect, and the Seller and its Subsidiaries are not in default in any material respect with respect to their obligations under
any such insurance policies. 
 Section 3.22. Customer and Supplier Relationships. To Seller’s knowledge, Section 3.22
of the Disclosure Schedule contains a complete and accurate list of the top ten customers (by revenue) ranked by ability to ultimately direct the purchasing decision of the Control Business, the top ten customers (by 
  

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 revenue) ranked by ability to ultimately direct the purchasing decision of the Sensor Business, the top ten suppliers (by
purchases) of the Control Business, and the top ten suppliers (by purchases) of the Sensor Business, in each case for the period from January 1, 2005 to the date hereof. No such customer or supplier within the last twelve months has canceled or
otherwise terminated, or to the knowledge of the Seller, threatened to cancel or terminate, its relationship with the Business, and no such customer or supplier has during the last twelve months decreased materially or, to the knowledge of Seller,
threatened to decrease or limit materially its business with the Business, in each case whether as a result of the transactions contemplated hereby or otherwise. 
 Section 3.23. Product Warranty and Liability. All products made, assembled, or sold by the Business in the previous three years have been in conformity with all applicable contractual commitments,
Applicable Law, and all express and implied warranties, with only such exceptions as would not reasonably be expected to be material to the Business. Neither Seller nor any of its Subsidiaries has been notified of any claims for, and Seller has no
knowledge of any threatened claims for, any product returns, warranty obligations or product services that would reasonably be expected to be material to the Business. 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF
BUYER 
 Buyer represents and warrants to Seller, as of the date hereof and as of the Closing, that: 
 Section 4.01. Corporate Existence and Power. Buyer is a corporation duly incorporated, validly existing and in good standing under the laws of
Delaware and has all corporate powers and all material governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted. 
 Section 4.02. Corporate Authorization. The execution, delivery and performance by Buyer of the Transaction Documents to which it is a party
and the consummation of the transactions contemplated thereby are within the corporate powers and authority of Buyer and have been duly authorized by all necessary corporate action on the part of Buyer. This Agreement has been duly and validly
executed and delivered by Buyer and constitutes a valid and binding agreement of Buyer. Each other Transaction Document will be duly and validly executed by Buyer at or prior to the Closing and, upon such execution and delivery by Buyer and the due
and valid execution and delivery of such Transaction Document by each other party thereto, will constitute a valid and binding agreement of Buyer, enforceable against Buyer in accordance with its terms. 
  

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 Section 4.03. Governmental Authorization. The execution, delivery and performance by Buyer of
the Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby require no material action by or in respect of, or material filing with, any Governmental Authority other than compliance with any
applicable requirements of the HSR Act and other Competition Laws. 
 Section 4.04. Noncontravention. The execution, delivery and
performance by Buyer of the Transaction Documents to which it is a party and the consummation of the transactions contemplated thereby do not and will not (i) violate the certificate of incorporation or bylaws of Buyer, (ii) assuming
compliance with the matters referred to in Section 4.03, violate any Applicable Law, (iii) require any consent or other action by any Person under, constitute a default under or give rise to any right of termination, cancellation or
acceleration of any material right or obligation or to a loss of any material benefit to which Buyer is entitled under any provision of any agreement or other instrument binding upon Buyer or (iv) result in the creation or imposition of any
material Lien on any asset of Buyer. 
 Section 4.05. Financing. Schedule 4.05 hereto contains true and complete copies of
(a) an executed commitment letter (the “Equity Commitment Letters”) from Bain Capital Fund VIII, L.P. confirming its commitment to provide Buyer with equity financing in an aggregate amount of up to $975,000,000 (nine hundred
seventy-five million dollars) (the “Equity Financing”) and designating Seller as a third party beneficiary thereof (subject to the limitations set forth therein) and (b) an executed commitment letter (the “Debt
Commitment Letter”) from Morgan Stanley Senior Funding, Inc., Bank of America, N.A., Bank of America Bridge LLC, Banc of America Securities LLC and Goldman Sachs Credit Partners L.P. confirming their commitment to provide Buyer with up to
$2.125 billion in debt financing (the “Debt Financing” and together with the Equity Financing, the “Financing”). Except as previously disclosed to Seller in writing, Buyer has not entered into any agreement not set
forth in the Debt Commitment Letter pursuant to which any Person has the right to modify or amend the terms of the Debt Financing described in the Debt Commitment Letter. Each of the Equity Commitment Letters is in full force and effect, is a valid
and binding obligation of each of the parties thereto and has not been amended or modified in any respect. The Debt Commitment Letter is a valid and binding obligation of Buyer and, to the knowledge of Buyer, the other parties thereto and, as of the
date hereof, has not been amended or modified in any respect. No event has occurred which, with or without notice, lapse of time or both, would constitute a default or breach on the part of Buyer under any term or condition of the Equity Commitment
Letters or the Debt Commitment Letter, and Buyer has no reason to believe that it will be unable to satisfy on a timely basis any term or condition of closing to be satisfied by it pursuant to the Equity Commitments Letters or the Debt Commitment
Letter. Buyer has fully paid any 
  

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 and all commitment or other fees required by the Debt Commitment Letter to be paid on or before the date hereof. The
Financing, when funded in accordance with, and subject to the terms and conditions of, the Equity Commitment Letters and the Debt Commitment Letter will provide Buyer with funds sufficient to pay the Purchase Price and any other amounts to be paid
by it under the Transaction Documents. 
 Section 4.06. Litigation. There is no action, suit, investigation or proceeding pending
against, or to the knowledge of Buyer threatened against or affecting, Buyer before any arbitrator or any Governmental Authority, except for such actions, suits, investigations or proceedings as would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on the ability of Buyer to consummate the transactions contemplated by the Transaction Documents. 
 Section 4.07. Finders’ Fees. There is no investment banker, broker, finder or other intermediary which has been retained by or is authorized to act on behalf of Buyer who might be entitled to any fee
or commission in connection with the transactions contemplated by this Agreement for which Seller or any of its Affiliates would be responsible. 
 Section 4.08. Inspections; No Other Representations. Buyer is an informed and sophisticated purchaser, and has engaged expert advisors, experienced in the evaluation and purchase of property and assets such as the Purchased
Assets and the Shares as contemplated hereunder. Buyer has undertaken such investigation and has been provided with and has evaluated such documents and information as it has deemed necessary to enable it to make an informed decision with respect to
the execution, delivery and performance of this Agreement. Buyer acknowledges that Seller has given Buyer access to the key employees, documents and facilities of the Business. Buyer will undertake prior to Closing such further investigation and
request such additional documents and information as it deems necessary. Buyer agrees to accept the Purchased Assets and the Business in the condition they are in on the Closing Date based on its own inspection, examination and determination with
respect to all matters and without reliance upon any express or implied representations or warranties of any nature made by or on behalf of or imputed to Seller, except as expressly set forth in this Agreement. Nothing in this paragraph will in any
way affect Buyer’s ability to rely on the representations and warranties contained in Articles 3 and 8, nor affect Buyer’s rights to indemnification under Article 11. 
  

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 ARTICLE 5 
 COVENANTS OF SELLER 
 Seller agrees that: 
 Section 5.01. Conduct of the Business. From the date hereof until the Closing Date, except as set forth on Section 5.01 of the Disclosure
Schedule or as specifically contemplated by any of the Transaction Documents, Seller shall, and shall cause its Subsidiaries to, conduct the Business in the ordinary course consistent with past practice and shall use its reasonable efforts to
preserve intact the business organizations and relationships with third parties and to keep available the services of the current Business Employees. Without limiting the generality of the foregoing, from the date hereof until the Closing Date,
except as set forth in Section 5.01 of the Disclosure Schedule or as specifically contemplated by any of the Transaction Documents, with respect to the Business Seller will not and will cause its Subsidiaries not to: 
 (a) acquire assets from any other Person (including by merger or consolidation) for consideration in excess of $5,000,000 in the aggregate
except (i) pursuant to existing contracts or commitments disclosed to Buyer as of the date hereof or (ii) purchases of inventory or capital expenditures in the ordinary course of business consistent with past practice; 
 (b) sell, lease, license or otherwise dispose of any Purchased Assets or assets of the Purchased Subsidiaries (including by merger or
consolidation) except (i) pursuant to existing contracts or commitments disclosed to Buyer as of the date hereof or (ii) sales of inventory or obsolete equipment in the ordinary course of business consistent with past practice; 

(c) agree or commit to do any of the foregoing; 
 (d) take any action that would make any representation or warranty of Seller in Section 3.08 of this Agreement inaccurate in any
material respect at the Closing Date or which would require disclosure pursuant to Section 3.08 if taken after the Balance Sheet Date and prior to the date hereof; or 
 (e) with respect to the Purchased Subsidiaries, make or change any Tax election, change an annual accounting period, adopt or change any
accounting method, file any amended Tax Return, settle any Tax claim or assessment, or take any other similar action relating to the filing of any Tax Return or the payment of any Tax, if such election, adoption, change, amendment, settlement, or
other action would have the effect of increasing the liability for Taxes of any Purchased Subsidiary for any Tax period ending after the Closing Date. 
 Section 5.02. Access to Information. (a) From the date hereof until the Closing Date, Seller will, and will cause its Subsidiaries to, (i) give Buyer, its 
  

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 Representatives and financing sources reasonable access to the offices, properties, books and records of Seller and its
Subsidiaries relating to the Business, (ii) furnish to Buyer and its Representatives such financial and operating data (including (A) audited annual financial statements with respect to 2005, which shall be furnished as soon as available
but in any event no later than February 28, 2006, (B) unaudited quarterly financial statements with respect to the first quarter of 2006, which shall be furnished as soon as available but in any event no later than April 30, 2006
(such annual and quarterly financial statements, collectively, the “Supplemental Financial Statements”) and (C) monthly management reports in a form consistent with the monthly management reports customarily prepared by the
Business, each such monthly management report to be furnished as soon as available but in any event no later than 15 days after the end of the applicable month) and other information relating to the Business as such Persons may reasonably request
and (iii) instruct the employees, counsel, financial advisors and other Representatives of Seller and its Subsidiaries to cooperate with Buyer in its investigation of the Business. Any investigation pursuant to this Section shall be conducted
in such manner as not to interfere unreasonably with the conduct of the business of Seller. Notwithstanding the foregoing, (A) Buyer shall not have access (1) to personnel records of Seller or its Affiliates relating to individual
performance or evaluation records, medical histories or other information which in Seller’s good faith opinion is sensitive or the disclosure of which could subject Seller or its Affiliates to risk of liability, (2) for purposes of
conducting any environmental sampling or testing or (3) to any information to the extent relating to any Retained Business and (B) Seller may, unless Buyer cooperates in any reasonably satisfactory protective arrangement, withhold, as and
to the extent necessary to avoid contravention or waiver, any document or information the disclosure of which would violate any agreement or any Applicable Law or would result in the waiver of any legal privilege or work-product privilege.

 (b) Seller shall, and shall cause its Subsidiaries to, provide such cooperation as may be reasonably requested by Buyer in connection with
obtaining the financing contemplated by the Debt Commitment Letter (or any replacement thereof), including: (i) participation in meetings, drafting sessions, and due diligence sessions, and otherwise assisting Buyer in the preparation of
offering materials and materials for rating agency presentations; (ii) reasonably cooperating with the marketing efforts of Buyer, its Subsidiaries, and their financing sources for any of the financing contemplated by the Debt Commitment Letter
(or any replacement thereof), including participation in management presentation sessions, “road shows”, and sessions with rating agencies; (iii) furnishing Buyer, its Subsidiaries, and their financing sources with financial and other
pertinent information regarding the Business as may be reasonably requested by Buyer, including all financial statements (but excluding any pro forma financial statements, which shall be prepared by Buyer with the 
  

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 cooperation of Seller and its Subsidiaries), and assisting Buyer in the preparation of business projections and other
financial data of the type required by Regulation S-X and Regulation S-K under the Securities Act and of the type and form customarily included in offering memoranda, private placement memoranda, prospectuses and similar documents;
(iv) providing and executing documents as may be reasonably requested by Buyer, including a certificate of the chief financial officer of (or person performing equivalent function for) the Business with respect to solvency matters and consents
of accountants for use of their reports in any materials relating to the Debt Commitment Letter; (v) reasonably facilitating the pledging of collateral; and (vi) using reasonable efforts to obtain accountants’ comfort letters, legal
opinions, surveys and title insurance as reasonably requested by Buyer. All reasonable out-of-pocket expenses incurred by Seller or any of its Subsidiaries in connection with the foregoing sentence shall be paid, or reimbursed promptly following
demand therefor, by Buyer. 
 (c) On and after the Closing Date, Seller will, and will cause its Subsidiaries to, afford promptly to Buyer,
its Subsidiaries and their respective Representatives reasonable access to its books of account, financial and other records (including accountant’s work papers), information, employees and auditors to the extent necessary or useful for any
such Persons in connection with any audit, investigation, dispute or litigation or any other reasonable business purpose relating to the Business or the transactions contemplated hereby (including the preparation by Buyer of an initial filing under
the Securities Act with respect to the financing contemplated by the Debt Commitment Letter and periodic reports under the Exchange Act); provided that any such access by any such Persons shall not unreasonably interfere with the conduct of
the business of Seller. In addition, Seller will use reasonable efforts to provide, or to cause its accountants or other Representatives to provide, such consents, letters or other documents as Buyer may reasonably request in connection with the
preparation by Buyer of such filing under the Securities Act and such reports under the Exchange Act. Buyer shall bear all of the out-of-pocket costs and expenses (including attorneys’ fees, but excluding reimbursement for general overhead,
salaries and employee benefits) reasonably incurred in connection with the foregoing. 
 Section 5.03. Non-compete. (a) For
a period of six years following the Closing Date, Seller shall not, and shall not permit any of its Subsidiaries or Affiliates to, engage in or participate in any business which engages in, the design, development, manufacture, marketing, license or
sale of Sensor Products or Control Products; provided that for purposes of this Section 5.03(a), the phrases “or under development” in clause (iii) of the definition of Control Products and “or under development”
in clause (ii) of the definition of Sensor Products shall be disregarded. The term “participate in” shall mean, with respect to any Person, (i) owning, managing or having any direct or indirect interest in such Person, whether as
owner, stockholder, partner or joint venturer or (ii)
  

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 having any officer or other senior management employee, at the direction of Seller, act as a director, officer, employee,
agent, consultant or independent contractor of any Person. 
 (b) Notwithstanding the foregoing, nothing in this Agreement shall restrict in
any way: 
 (i) the right of Seller or any of its Subsidiaries to (A) design, develop, manufacture, market, license or
sell Semiconductor Products (including any Semiconductor Products which are designed to sense physical phenomena, condition signals from sensors or both), (B) engage in any Semiconductor Activities or (C) license any Intellectual Property
Rights (other than the Business Intellectual Property Rights, except as expressly described in the Cross License Agreement); 
 (ii) the right of Seller or any of its Subsidiaries to design, develop, manufacture, market, license or sell any tire pressure sensor application currently under development or manufactured or sold by Seller or any of the Retained
Subsidiaries and described in Section 5.03 of the Disclosure Schedule or any extension, modification, derivative, replacement or successor thereof (collectively, the “Tire Pressure Sensor Products”); 
 (iii) the acquisition or ownership by Seller or any of its Subsidiaries of up to 20% of the outstanding equity securities of any Person
whose revenues attributable to a business in which Seller or such Subsidiary would otherwise not be permitted to engage or participate pursuant to this Section 5.03 (a “Competing Business”) do not at any time exceed $50 million
(based on the last annual financial statements of such Person preceding the date of determination), so long as neither Seller nor any of its Subsidiaries has any active participation in the business or management of the business conducted by such
Person (which active participation would include appointing a representative to serve on the board of directors or equivalent governing body of such Person or having the right to effectively control or materially restrict, through veto rights or
otherwise, the management or policies of such Person other than with respect to customer supply or product development arrangements); or 
 (iv) the acquisition by Seller or any of its Subsidiaries of a majority interest in a Person who conducts a Competing Business; provided that if the Competing Business has annual revenues in excess of $5
million (based on the last annual financial statements of such Person preceding the date of determination) during the last full fiscal year preceding the consummation of such acquisition or any subsequent full fiscal year, then 
  

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 (A) Seller shall, or shall cause its relevant Subsidiary to, as soon as it may reasonably
do so on commercially reasonable terms and in any event within eighteen months following (1) if the Competing Business’ annual revenues exceeded such threshold for its last full fiscal year preceding the acquisition, the consummation of
such acquisition and (2) otherwise, the end of the first full fiscal year in which the Competing Business’ annual revenues exceed such threshold, divest such Person’s interest in the Competing Business or terminate such Competing
Business; and 
 (B) with respect to any such divestiture, Seller shall, or shall cause its relevant Subsidiary to, provide
Buyer with the exclusive opportunity to negotiate with Seller or such Subsidiary for a period of 60 days with respect to the possible acquisition by Buyer of the Competing Business prior to entering into negotiations with another Person with respect
to such divestiture. 
 Section 5.04. Confidentiality. Seller will not, and will cause its controlled Affiliates and
Representatives not to, for a period of three years after the Closing Date, directly or indirectly, without the prior written consent of Buyer, disclose to any third party (other than each other and their respective Representatives) any confidential
or proprietary information included in the Purchased Assets; provided that the foregoing restriction will not (a) apply to any information to the extent (i) relating to Intellectual Property Rights, the disclosure of which shall be
governed by the Cross-License Agreement, (ii) generally available to, or known by, the public (other than as a result of disclosure in violation of this Section 5.04), (iii) that such information relates to Semiconductor Products or
(iv) independently developed by Seller or any of its Affiliates (other than by the Business prior to the Closing) or (b) prohibit any disclosure (i) required by any applicable legal requirement or (ii) made to the extent
necessary, in the reasonable judgment of Seller, in connection with the enforcement of any right or remedy relating to any of the Transaction Documents or the transactions contemplated hereby or thereby, so long as, in the case of each of the
foregoing clauses (i) and (ii), to the extent legally permissible, Seller provides Buyer with reasonable prior notice of such disclosure and a reasonable opportunity to seek an appropriate protective order. 
 Section 5.05. Insurance. (a) Except as set forth in this Section 5.05, coverage of the Purchased Assets and Purchased Subsidiaries
under any insurance policy of Seller or its Affiliates shall cease as of the Closing Date. 
 (b) Seller shall and shall cause its Affiliates
to use reasonable efforts (including using reasonable efforts to cause Buyer and its Subsidiaries to be listed as “Additional Insureds”) to ensure that the Purchased Assets and Purchased 
  

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 Subsidiaries shall, to the extent covered as of the date hereof or the Closing Date, continue to have coverage under each
insurance policy in effect with respect thereto at any time prior to the Closing (each, a “Specified Policy”) in accordance with the terms and conditions thereof from and after the Closing Date for any loss, liability or damage
suffered with respect to any incident or event occurring prior to the Closing. Seller shall indemnify Buyer for the costs and expenses referred to in this Section 5.05(b) to the extent, if any, that Seller is required to do so pursuant to
Article 11. 
 (c) In the case of any Specified Policy that is a “claims made basis” policy, from the Closing Date until the policy
expiration date (including any renewal thereof) of such policy (if later than the Closing Date), and in the case of any Specified Policy that is an “occurrence basis” policy, after the Closing Date, the Seller shall, and shall cause its
Affiliates to, use their reasonable efforts to assist Buyer or its Subsidiaries in asserting claims for any loss, liability or damage suffered with respect to any Purchased Assets and Purchased Subsidiaries after the Closing with respect to any
incident or event occurring prior to the Closing, to the extent such loss, liability or damage is covered by the terms of such Specified Policy; provided that (i) all of the Seller’s and its Affiliates’ reasonable out-of-pocket
costs and expenses incurred in connection with the foregoing are promptly paid by Buyer or its Subsidiaries as directed by the Sellers, (ii) such claims will be subject to (and recovery thereon will be reduced by the amount of) any applicable
deductibles, retentions, gaps or self-insurance provisions, (iii) such claims will be subject to exhaustion of per claim and applicable limits, and (iv) in the event that any legal action, arbitration, negotiation or other proceedings are
required for coverage to be asserted against any insurer or a claim to be perfected, Buyer shall do so solely at its own expense. For the avoidance of doubt, in no event shall Buyer be entitled to assert any claim with respect to an occurrence with
a date of loss occurring after the Closing. None of the Seller or its Affiliates will bear any liability for the failure of an insurance carrier to pay any claim under any Specified Policy. This Section 5.05(c) shall not affect Seller’s
indemnification obligations pursuant to Article 11. 
 (d) Notwithstanding any provision of this Agreement, Seller shall not be required to
comply with this Section 5.05 or any portion thereof if so doing would (i) be materially adverse to Seller or its Subsidiaries or (ii) require Seller or its Subsidiaries to incur any significant costs not reimbursable by Buyer.

 Section 5.06. Exclusivity. Until the date upon which this Agreement is terminated, Seller shall not, and shall cause each of
its Subsidiaries, Affiliates and Representatives not to, directly or indirectly, solicit or initiate or enter into discussions or transactions with, or encourage, or provide any information to any Person or group of Persons (other than Buyer and its
Representatives) concerning, any sale, lease, or license of all or any portion of the Business or the Purchased Assets or Purchased Subsidiaries (other than sales of obsolete equipment or 
  

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 inventory in the ordinary course of business and sales expressly permitted by this Agreement or with respect to assets or
liabilities of the Purchased Subsidiaries that are deemed Excluded Assets or Excluded Liabilities pursuant to Section 2.06(a)) or any other alternative to the transactions contemplated by this Agreement (an “Alternative
Transaction”); provided that Seller shall be entitled, by notice to Buyer delivered not later than April 10, 2005, to terminate its obligations pursuant to this Section 5.06 if Buyer does not deliver to Seller on
March 31, 2005 a letter that describes in reasonable detail the status of Buyer’s efforts to consummate the Debt Financing and reasonably demonstrate that the Debt Financing is reasonably likely to be consummated, except that,
notwithstanding such termination, Seller shall not be permitted to enter into negotiations with respect to the terms of any Alternative Transaction until the date upon which this Agreement is terminated. 
 Section 5.07. Intercompany Receivables and Payables. At or prior to the Closing, Seller shall, and shall cause its Subsidiaries to, eliminate
all intercompany receivables and payables between the Business, on the one hand, and any Retained Business, on the other hand, incurred in the ordinary course of business. For the avoidance of doubt, any Taxes of the Purchased Subsidiaries arising
from such elimination shall be treated as a Purchased Subsidiary Liability for purposes of this Agreement. 
 ARTICLE 6 
 COVENANTS OF BUYER 
 Buyer agrees that: 
 Section 6.01. Confidentiality. All information provided or made available to
Buyer, its Affiliates or any of their respective Representatives or potential sources of financing (except for any such Representatives or financing sources who are party to a confidentiality agreement with Seller with respect to the transactions
contemplated hereby) pursuant to any of the Transaction Documents or in connection with the transactions contemplated thereby will be subject to the confidentiality agreement dated September 28, 2005 between Buyer and Seller (the
“Confidentiality Agreement”), which agreement shall remain in full force and effect for the benefit of Seller and shall survive the Closing (with respect to information concerning the Retained Businesses) or any termination of this
Agreement. 
 Section 6.02. Access. On and after the Closing Date, Buyer will afford promptly to Seller and its Representatives
reasonable access to its properties, books, records, employees and auditors to the extent necessary to permit Seller to determine any matter relating to its rights and obligations hereunder or to any period ending on or before the Closing Date;
provided that any such access by 
  

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 Seller shall not unreasonably interfere with the conduct of the business of Buyer. Seller shall bear all of the
out-of-pocket costs and expenses (including attorneys’ fees, but excluding reimbursement for general overhead, salaries and employee benefits) reasonably incurred in connection with the foregoing. 
 Section 6.03. Financing Matters. Buyer shall comply with its obligations under the Debt Commitment Letter and shall use its reasonable
efforts to consummate the Debt Financing on the terms and conditions described in the Debt Commitment Letter, including using its reasonable efforts to (i) negotiate definitive agreements with respect to the Financing on the terms and
conditions contained in the Debt Commitment Letter and (ii) satisfy all conditions to the Debt Financing to the extent the satisfaction of such conditions is within the control of Buyer. If any portion of the Debt Financing becomes unavailable
on the terms and conditions contemplated in the Debt Commitment Letter, Buyer will seek in good faith to arrange to obtain such portion from alternative sources on terms and conditions that are equivalent or more favorable to Buyer as promptly as
practicable. Subject to the satisfaction by Seller of its obligations pursuant to Section 5.02, the conditions set forth in Section 10.01 and 10.02 (other than Section 10.02(e)) and the conditions to funding set forth in the Debt
Commitment Letter (other than conditions the nonsatisfaction of which is solely the result of the failure of the Equity Financing to be consummated), Buyer will draw down on the Bridge Loans, the Senior Bridge Loans and the Senior Subordinated
Bridge Loans (in each case, as defined in the Debt Commitment Letter) if adequate funding has not been obtained through the issuance of the Subordinated Notes and the Notes (in each case, as defined in the Debt Commitment Letter) and the senior
secured portion of the Debt Financing, in each case, as necessary to enable the Debt Financing to be funded on or prior to the later of (A) May 31, 2006 and (B) the earlier of (1) June 30, 2006 and (2) the
30th day after the first date on which both (x) Seller shall have provided Buyer with all financial information
reasonably necessary to complete an offering memorandum for the Subordinated Notes and Notes financing (it being understood that such requirement shall not be satisfied if such information would go “stale” within such 30-day period) and
(y) the conditions set forth in Section 10.01(a), 10.01(b), 10.01(c), 10.02(b) and 10.02(c) have been satisfied and the parties reasonably expect that the condition set forth in Section 10.01(e) will be satisfied within 30 days. Buyer
will give Seller prompt notice of any material breach by any party of the Debt Commitment Letter or any termination of the Debt Commitment Letter. To the extent reasonably requested by Seller, Buyer will keep Seller informed on a current basis in
reasonable detail of the status of its efforts to consummate the Financing. Buyer will not agree to any material amendment or modification to, or grant or seek any waiver under, the Debt Commitment Letter without first consulting with Seller and, if
such amendment, modification or waiver would or would reasonably be expected to adversely affect or delay in any material respect Buyer’s ability to consummate the Debt Financing or the Closing, receiving Seller’s prior written consent.

  

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 Section 6.04. 338(g) Election. Buyer agrees to make, upon Seller’s written request
received by Buyer no later than 30 days after the Closing Date, an effective and irrevocable election under Section 338(g) of the Code with respect to each Purchased Subsidiary, to file each such election within the time limit set forth in
Treasury Regulation Section 1.338-2(d), and to provide Seller or its relevant Subsidiary with a notice of each such election pursuant to Treasury Regulation Section 1.338-2(e)(4). 
 ARTICLE 7 
 COVENANTS OF BUYER
AND SELLER 
 Buyer and Seller agree that: 
 Section 7.01. Reasonable Efforts; Further Assurance. (a) Subject to the terms and conditions of this Agreement, Buyer and Seller will use
their reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under Applicable Law to consummate the transactions contemplated by the Transaction Documents. Seller and Buyer
agree to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be reasonably necessary or desirable in order to consummate or implement expeditiously the transactions contemplated
by the Transaction Documents, to vest in Buyer or its Subsidiaries ownership of the Purchased Subsidiaries and good title to the Purchased Assets and to confirm the assumption by Buyer or its Subsidiaries of the Assumed Liabilities. 
 (b) In furtherance and not in limitation of the foregoing, each of Buyer and Seller shall make appropriate filings pursuant to applicable Competition
Laws, including an appropriate filing of a Notification and Report Form pursuant to the HSR Act and any applicable filings in the European Union, Korea and, to the extent required by Applicable Law, Brazil, China, Japan and Mexico, with respect to
the transactions contemplated by the Transaction Documents as promptly as reasonably practicable and, in the case of such Notification and Report Form pursuant to the HSR Act, in any event within 10 Business Days of the date hereof. Each of Buyer
and Seller shall supply as promptly as reasonably practicable any additional information and documentary material that may be requested pursuant to the HSR Act and any other Competition Laws and shall take all other actions reasonably necessary to
cause the expiration or termination of the applicable waiting periods under the HSR Act and any other Competition Laws as soon as practicable. 
  

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 (c) If any objections are asserted with respect to the transactions contemplated by any of the
Transaction Documents under any Competition Law or if any suit or proceeding is instituted or threatened by any Governmental Authority or any private party challenging any of the transactions contemplated by any of the Transaction Documents as
violative of any Competition Law, each of Buyer and Seller shall use its reasonable best efforts to promptly resolve such objections. In furtherance of the foregoing, Buyer shall, and shall cause its Subsidiaries and controlled Affiliates to, take
all actions, including agreeing to hold separate or to divest any of the businesses or properties or assets of Buyer or any of its Affiliates (including any Purchased Assets and any assets of any Purchased Subsidiary) and to terminate any existing
relationships and contractual rights and obligations, as may be required (i) by the applicable Governmental Authority in order to resolve such objections as such Governmental Authority may have to such transactions under any Competition Law or
(ii) by any domestic or foreign court or other tribunal, in any action or proceeding brought by a private party or Governmental Authority challenging such transactions as violative of any Competition Law, in order to avoid the entry of, or to
effect the dissolution, vacating, lifting, altering or reversal of, any order that has the effect of restricting, preventing or prohibiting the consummation of the transactions contemplated by the Transaction Documents; provided that Buyer
and its Subsidiaries and controlled Affiliates will not have any obligation to take any such action that has or would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of Buyer and
its Subsidiaries (including, after the Closing, the Business), taken as a whole, or of such controlled Affiliate. 
 Section 7.02.
Certain Filings; Consents. Seller and Buyer shall cooperate with one another (i) in determining whether any action by or in respect of, or filing with or Consent of, any Governmental Authority is required, or any actions or Consents are
required to be obtained from parties to any material contracts, in connection with the consummation of the transactions contemplated by the Transaction Documents and (ii) in taking such actions or making any such filings, furnishing information
required in connection therewith and seeking to obtain any such actions or Consents in a timely manner. Seller shall pay any commercially reasonable amounts required in order to obtain such actions or Consents; provided that the filing fees
required pursuant to the HSR Act or other Competition Laws will be borne by the party required to pay such fees under Applicable Laws. 
 Section 7.03. Public Announcements. The initial press release relating to the Transaction Documents and the transactions contemplated hereby or thereby will be a joint release agreed upon by the parties, except for any press
releases or public statements the making of which may be required by Applicable Law or any listing agreement with any national securities exchange (which, to the extent practicable, shall not be issued prior to the other party being given a
reasonable opportunity to review and comment). The parties agree to consult with each other 
  

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 before issuing any further press release or making any other public statement with respect to any Transaction Document or
the transactions contemplated hereby or thereby which differs substantially from previously agreed upon press releases or public statements and, except for any press releases and public statements the making of which may be required by Applicable
Law or any listing agreement with any national securities exchange, neither party will issue any such press release or make any such public statement unless the content of such press release or public statement shall have been agreed upon by the
parties. 
 Section 7.04. Notices of Certain Events. Each of Seller and Buyer shall promptly notify the other party of:

 (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in
connection with the transactions contemplated by the Transaction Documents; 
 (b) any notice or other communication from any
Governmental Authority in connection with the transactions contemplated by the Transaction Documents; and 
 (c) any actions,
suits, claims, investigations or proceedings commenced that, if pending on the date of this Agreement, would have been required to have been disclosed pursuant to, in the case of Seller, Section 3.11 or, in the case of Buyer, Section 4.06.

 Each of Seller and Buyer shall use reasonable efforts to notify the other party of any event or state of facts which makes the representations and
warranties of such party contained herein untrue in any material respect or which makes the satisfaction of any condition or performance of any obligation of such party contained herein impossible or reasonably unlikely. 
 Section 7.05. WARN Act. Buyer shall assume all obligations and Liabilities for the provision of notice or payment in lieu of notice or any
applicable penalties under the Worker Adjustment and Retraining Notification Act (the “WARN Act”) or any similar law arising as a result of the transactions contemplated by this Agreement. Buyer hereby indemnifies Seller and its
Affiliates against and agrees to hold each of them harmless from any and all Damages incurred or suffered by Seller or any of its Affiliates with respect to WARN or any similar law arising as a result of the transactions contemplated by the
Transaction Documents. 
 Section 7.06. Non-solicit. (a) For a period of three years following the Closing Date, Seller
shall not, and shall not permit any of its controlled Affiliates to, (i) directly solicit (or cause to be directly solicited) any of the individuals listed 
  

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 in Section 7.06(a) of the Disclosure Schedule or any individual that may be added thereto prior to the Closing
(A) to reflect new hires of officers, management employees, key technical employees or key sales employees and departures from the Business occurring after the date hereof or (B) by agreement of Seller and Buyer (the “Business
Covered Employees”), except pursuant to generalized solicitations by use of advertising or which are not specifically targeted at the Business Covered Employees, or (ii) hire any of the Business Covered Employees; provided that
the foregoing shall not restrict the solicitation or hiring of any Person who was not employed by Buyer for the six month period prior to such Person’s solicitation or hiring. 
 (b) Until the third anniversary of the last date on which services are provided by Seller pursuant to the Transition Services Agreement, Buyer shall not,
and shall not permit any of its controlled Affiliates (including, after the Closing, the Purchased Subsidiaries) to, (i) directly solicit (or cause to be directly solicited) any officer, management employee or other key employee of Seller or
any of Seller’s Subsidiaries who provided services to Buyer pursuant to the Transition Services Agreement, except pursuant to generalized solicitations by use of advertising or which are not specifically targeted at such employees, or
(ii) hire any such employee; provided that the foregoing shall not restrict the solicitation or hiring or any Person who was not employed by Seller or any of Seller’s Subsidiaries for the six month period prior to such Person’s
solicitation or hiring. 
 (c) For a period of six months following the Closing Date, neither Seller nor Buyer shall, nor shall either Seller
or Buyer permit any of its controlled Affiliates (including, with respect to Buyer after the Closing, the Purchased Subsidiaries) to, (i) directly solicit (or cause to be directly solicited) any employee of the other party who is employed by or
contracted to Texas Instruments Malaysia Sdn. Bhd., Texas Instruments de Mexico, S. de R.L. de C.V., Texas Instruments (China) Company Limited, Texas Instruments (Changzhou) Co., Ltd., Texas Instruments Hong Kong Limited or Texas Instruments
Semiconductor Technologies (Shanghai) Co., Ltd. as of the Closing Date, except pursuant to generalized solicitations by use of advertising or which are not specifically targeted at such employees, or (ii) hire any such employee. 
 Section 7.07. Conflicts; Privileges. (a) Buyer waives and will not assert, and agrees to cause its Subsidiaries (including, after the
Closing, the Purchased Subsidiaries) to waive and not to assert, any conflict of interest arising out of or relating to the representation after the Closing of Seller, any Retained Subsidiary or any shareholder, officer, employee or director of
Seller or any Retained Subsidiary in any matter involving any Transaction Document or the transactions contemplated thereby, by any legal counsel or accountant currently representing Seller, any Retained Subsidiary or any Purchased Subsidiary in
connection with the Transaction Documents or the transactions contemplated thereby (the “Current Representation”) and listed in Section 7.07 of the Disclosure Schedule (the “Designated Representatives”).

  

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 (b) It is the intent of Seller and Buyer that all rights to any evidentiary privilege, including any
attorney-client, work product or federally authorized tax practitioner privilege, with respect to any communication between any Designated Representative, on the one hand, and Seller, any Subsidiary of Seller (including any Purchased Subsidiary) or
any shareholder, officer, employee or director of Seller or any Subsidiary of Seller, on the other hand, relating to (i) the Current Representation or (ii) any Excluded Asset, Excluded Liability or Retained Subsidiary shall, in the case of
each of clauses (i) and (ii), be retained by Seller. Accordingly, Buyer waives and will not assert, and agrees to cause its Affiliates (including, after the Closing, the Purchased Subsidiaries) to waive and not to assert, including in
connection with any dispute with Seller, any evidentiary privilege with respect to any such communication. 
 (c) Seller and Buyer agree to
take, and to cause their respective Affiliates to take, all steps reasonably necessary to implement the intent of this Section 7.07. 
 Section 7.08. Commercial Arrangements. Buyer and Seller shall use their reasonable efforts in good faith to enter into written agreements prior to the Closing with respect to the purchase and supply of products that are the
subject of existing arrangements (whether written or oral) between the Business, on the one hand, and any Retained Business, on the other hand, such agreements to be on the standard terms and conditions used by the Business or the relevant Retained
Business, as applicable, in similar agreements with non-Affiliated third parties. 
 Section 7.09. Accounts Receivable. Following
the Closing, if Buyer or Seller (or their respective Affiliates) receives payment with respect to an account receivable that is owned by the other party pursuant to the terms of this Agreement, such party shall promptly (and in any event within ten
Business Days) remit such payment to the other party. 
 Section 7.10. Seller Trademarks and Tradenames. (a) Subject to the
terms and conditions of this Section 7.10, Seller grants to Buyer and its Subsidiaries a nonexclusive, worldwide, fully-paid and royalty-free license under any rights Seller may have in the Seller Trademarks and Tradenames, to reproduce and
affix: 
 (i) in perpetuity, the Seller Trademark and Tradename “TI bug” to the inventory included in the Purchased
Assets or manufactured in compliance with this Section 7.10; 
  

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 (ii) Sensor Products and Control Products manufactured within a period of twelve months
following the Closing Date using the molds in which the Seller Trademark and Tradename “TI bug” is embedded and exists as of the Closing Date, provided that Buyer’s manufacture of inventory using such molds during such twelve
month period shall be in amounts substantially consistent with past practices; 
 (iii) for a period of nine months following
the Closing Date, the Seller Trademark and Tradename “TI” in price lists, literature and advertising for Current Products; and 
 (iv) for a period of nine months following the Closing Date, the Seller Trademark and Tradename “TI” and “TI bug” on the device packaging (i.e., outer and inner carton) for the Current
Products. 
 Any such use of the Seller Trademarks and Tradenames will be in substantially the same manner of current use by Seller or its Subsidiaries,
unless otherwise agreed to by Seller in writing. 
 (b) Buyer agrees to cease using the Seller Trademarks “TI” and “TI
bug” logo and distributing Current Product units, literature and advertising for the Current Product that bear such “TI” and “TI bug” logo Seller Trademarks as soon as practicable, notwithstanding the specified time periods
set forth above. Buyer shall not, however, be required to recall or destroy price lists, literature or advertising for the Current Product bearing Seller Trademarks and Tradenames. 
 (c) If reasonably requested by Seller, at Seller’s cost, Buyer shall cooperate to enable Seller to register the Seller Trademarks and Tradenames, or
to register Buyer as a user of the Seller Trademarks and Tradenames, in countries where the Seller Trademarks and Tradenames are then currently used by Buyer. 
 (d) Buyer agrees that to the extent any Seller Trademarks and Tradenames are used on or in connection with Sensor Products and Control Products after Closing, such Sensor Products and Control Products shall be of a
quality commensurate in all material respects with specifications used by Seller, any of its Subsidiaries or any other Person currently manufacturing Sensor Products and Control Products for Seller or any of its Subsidiaries. If Seller notifies
Buyer in writing that such specifications are not being met with respect to any Sensor Products or Control Products that (i) were manufactured after the Closing Date and (ii) which use any Seller Trademark and Tradename in a manner not
substantially consistent with the manner in which such Seller Trademark and Tradename was used by the Business with respect to such Sensor Products or Control Products prior to the Closing Date, Buyer shall have 30 days after receipt of such notice
to implement measures to correct, or to take reasonable steps toward correcting, the nonconformance. If Buyer fails to correct 
  

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 the nonconformance within such 30-day period (or to take reasonable steps toward correcting the nonconformance within
such 30-day period and correct the nonconformance within 45 days after Buyer’s receipt of such notice), Buyer agrees to stop all use of the Seller Trademarks and Tradenames on such nonconforming Sensor Products and Control Products as soon as
reasonably possible after requested by Seller to do so. 
 (e) As soon as reasonably practicable following the Closing, Buyer shall change
the name of each Purchased Subsidiary so that it does not include any of the Seller Trademarks and Tradenames. 
 (f) Except as set forth in
this Section 7.10, after the Closing, Buyer shall not use any of the Seller Trademarks and Tradenames, except for a period of six months following the Closing Date to the extent necessary to communicate that the Business was formerly owned by
Seller. 
 Section 7.11. Certain Products. (a) If Buyer reasonably believes or receives written notice that the manufacture,
use, sale, offer for sale, or import of any Current Product infringes or is likely to infringe any claim of any Patent owned by any other Person anywhere in the world, then, as a condition to Seller’s obligations under Sections 11.02(a)(vi) and
11.02(a)(vii), Buyer shall use its reasonable efforts to obtain such Current Product from a Person (including Seller under subsection (b) below) that has sufficient ownership, rights or licenses to manufacture and sell such Current Product to
Buyer without infringing any claim of any Patent owned by any other Person anywhere in the world; provided that any royalty or other increase in the per unit price or cost paid or incurred by Buyer for such Current Product (relative to the
price or cost that Buyer demonstrates in reasonable detail it would have paid in the absence of such infringement, such price or cost to be based on the average price or cost per unit that Buyer paid or incurred during the preceding twelve month
period for such Current Product (if applicable)) shall be deemed Damages for purposes of Sections 11.02(a)(vi) and 11.02(a)(viii) to the extent that such Sections apply in accordance with Article 11. In addition, if Buyer arranges to obtain a
Current Product from a Person who does not provide such Current Product to the Business as of the Closing Date (including with respect to a Current Product that is not marketed or sold by the Business as of the Closing Date), then, as a condition to
Seller’s obligations under Sections 11.02(a)(vi) and 11.02(a)(vii), Buyer shall use its reasonable efforts to obtain such Current Product from a reputable and established source, including Seller under Section 7.11(b) (it being understood
that for this purpose current suppliers of Current Products shall be considered reputable and established sources) that Buyer reasonably believes has sufficient ownership, rights or licenses to manufacture and sell such Current Product to Buyer
without infringing any claim of any Patent owned by any other Person anywhere in the world. 
  

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 (b) Upon a request of Buyer made prior to the third anniversary of the Closing Date or if Seller makes
the election referred to in paragraph (C) of Section 11.02(a)(vii) of the Disclosure Schedule, Buyer and Seller shall enter into mutually agreeable, commercially reasonable arrangements pursuant to which Seller shall make, have made, sell,
offer for sale or import, in each case for Buyer, any Current Product that is alleged to infringe any Intellectual Property Rights of a third party, provided that Seller has the capability to do so and has sufficient ownership, rights or licenses to
do so without resulting in such infringement or breach of any applicable license agreement. The price paid by Buyer to Seller with respect to any such arrangement (the “Have Made Costs”) shall be: 
 (i) if such arrangement is entered into upon a request of Buyer made on or prior to April 30, 2007 or because Seller makes the
election referred to in paragraph (C) of Section 11.02(a)(vii) of the Disclosure Schedule, the greater of (A) the product of (1) the price or cost per unit that Buyer demonstrates in reasonable detail it would have paid in the
absence of such infringement, such price or cost to be based on the average price or cost per unit that Buyer paid or incurred during the preceding twelve month period for such Current Product, multiplied by (2) the number of units of
such Current Product manufactured by or for Seller and delivered to Buyer or Buyer’s designee, and (B) all of Seller’s reasonable manufacturing, selling and related costs and expenses (including appropriate allocations for overhead,
depreciation and amortization) associated with Seller’s performance under this Section 7.11(b) in respect of such Current Product, determined in accordance with generally accepted accounting principles in the United States, consistently
applied; or 
 (ii) if such arrangement is entered into upon a request of Buyer made after April 30, 2007 and prior to
the third anniversary of the Closing Date, a commercially reasonable amount. 
 Seller shall invoice Buyer within 60 days after each shipment of such Current
Product for the applicable Have Made Costs for the Current Products included in such shipment. Payment of such invoice shall be made within 30 days after delivery to Buyer of such invoice, except to the extent that Buyer may dispute any such Have
Made Costs in good faith. Within sixty days after the end of each calendar quarter, Seller shall, if applicable, provide Buyer with reasonable detail and documentation backup to support the calculation of and bases for Have Made Costs with respect
to Current Products shipped in such quarter. 
  

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 ARTICLE 8 
 TAX MATTERS 
 Section 8.01. Tax Matters. Except as set forth in
the Disclosure Schedule, Seller hereby represents and warrants, as of the date hereof and as of the Closing Date, to Buyer that: 
 (a) Seller and its Subsidiaries have timely paid all Taxes required to be paid, the non-payment of which would result in a Lien on any Purchased Asset or Share. 
 (b) Seller and its Subsidiaries have established, in accordance with GAAP applied on a consistent basis with that of preceding periods,
adequate reserves for the payment of, and will timely pay, all (i) Taxes due and payable (A) which arise from or with respect to the Purchased Assets, the Shares or the operation of the Business or (B) of the Purchased Subsidiaries,
in each case which are incurred in or attributable to the Pre-Closing Tax Period and (ii) all Taxes arising out of the Restructuring. 
 (c) Each Purchased Subsidiary has timely filed all material Tax Returns that it was required to file. All such Tax Returns were correct and complete in all material respects and were prepared in substantial compliance
with all applicable laws and regulations. All material Taxes owed and due by Purchased Subsidiaries have been paid. There are no Liens on any of the assets of the Purchased Subsidiaries that arose in connection with any failure (or alleged failure)
to pay any material Tax. 
 (d) There is no dispute or claim concerning any material Tax liability of any Purchased Subsidiary
either (i) claimed or raised by any authority in writing or (ii) as to which any directors and officers (and employees responsible for Tax matters) of Seller or any Purchased Subsidiary has knowledge based upon personal contact with any
agent of such authority. 
 (e) No Purchased Subsidiary has waived any statute of limitations in respect of any material Taxes
or agreed to any extension of time with respect to a material Tax assessment or deficiency. 
 Section 8.02. Tax Cooperation;
Allocation of Taxes. (a) Buyer and Seller agree to furnish or cause to be furnished to each other, upon request, as promptly as practicable, such information and assistance relating to the Business, the Purchased Assets and the Purchased
Subsidiaries (including access to books and records) as is reasonably necessary for the filing of all Tax returns, the making of any election relating to Taxes, the preparation for any audit by any Taxing Authority, and the prosecution or defense of
any claim, suit or proceeding relating 
  

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 to any Tax. Buyer and Seller shall retain all books and records with respect to Taxes pertaining to the Purchased Assets
or Purchased Subsidiaries for a period of at least seven years following the Closing Date. On or after the end of such period, each party shall provide the other with at least 10 days prior written notice before destroying any such books and
records, during which period the party receiving such notice can elect to take possession, at its own expense, of such books and records. Seller and Buyer shall cooperate with each other in the conduct of any audit or other proceeding relating to
Taxes involving the Purchased Assets, the Purchased Subsidiaries or the Business. 
 (b) All real property taxes, personal property taxes and
similar ad valorem obligations levied with respect to the Purchased Assets or the Purchased Subsidiaries for a taxable period which includes (but does not end on) the Closing Date (collectively, the “Apportioned Ad Valorem
Obligations”) shall be apportioned between Seller and Buyer based on the number of days of such taxable period included in the Pre-Closing Tax Period and the number of days of such taxable period after the Closing Date (any such portion of
such taxable period, the “Post-Closing Tax Period”). All other Taxes with respect to the Purchased Assets or the conduct of the Business (including Taxes of the Purchased Subsidiaries) for such a taxable period (the “Other
Apportioned Obligations”) shall be apportioned between Buyer and Seller as if such period ended on the Closing Date. Seller shall be liable for the proportionate amount of Apportioned Ad Valorem Obligations and Other Apportioned Obligations
(together, the “Apportioned Obligations”) that is attributable to the Pre-Closing Tax Period, except to the extent such Taxes were taken into account as a liability in calculating Final Working Capital, and Buyer (or its
Subsidiaries) shall be liable for the proportionate amount of such taxes that is attributable to the Post-Closing Tax Period. 
 (c) All
excise, sales, use, value added (except for value added taxes that will be recoverable by Buyer or its Subsidiaries after the Closing Date), registration stamp, recording, documentary, conveyancing, franchise, property, transfer, gains and similar
Taxes, levies, charges and fees (collectively, “Transfer Taxes”) incurred in connection with the transactions contemplated by this Agreement shall be shared equally by Buyer and Seller. Value added taxes incurred in connection with
the transactions contemplated by this Agreement that will be recoverable by Buyer or its Subsidiaries after the Closing Date shall be invoiced by Seller to Buyer, paid by Buyer to Seller and remitted by Seller to the relevant Taxing Authority in
accordance with Applicable Law; provided that Seller shall simultaneously with Buyer’s payment of such taxes to Seller advance to Buyer (i) 100% of the aggregate amount by which all such value added taxes exceed $5 million but are
less than or equal to $10 million and (ii) 50% of the aggregate amount of all such value added taxes in excess of $10 million and, in the case of each of clauses (i) and (ii), within 10 Business Days of Buyer’s recovery of such value
added taxes (or any portion thereof) from the applicable 
  

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 Taxing Authorities, Buyer shall reimburse Seller for Seller’s pro rata portion (determined based on the
proportion that the total amount advanced by Seller to Buyer under clauses (i) and (ii) bears to the total amount of such recoverable value added taxes paid by Buyer to Seller) of the amount so recovered. Buyer and Seller shall cooperate
in providing each other with any appropriate resale exemption certifications and other similar documentation. 
 (d) Apportioned Obligations
and Taxes described in Section 8.02(c) shall be timely paid, and all applicable filings, reports and returns shall be filed, as provided by Applicable Law. The paying party shall be entitled to reimbursement from the non-paying party in
accordance with Section 8.02(b) or (c), as the case may be. Upon payment of any such Apportioned Obligation or Tax, the paying party shall present a statement to the non-paying party setting forth the amount of reimbursement to which the paying
party is entitled under Section 8.02(b) or (c), as the case may be together with such supporting evidence as is reasonably necessary to calculate the amount to be reimbursed. Except with respect to Taxes of a Purchased Subsidiary that are being
paid by Seller to Buyer in accordance with Section 8.02(e), the non-paying party shall make such reimbursement promptly but in no event later than 10 days after the presentation of such statement. Any payment not made within such time shall
bear interest on a daily basis, at the rate per annum set forth in Section 2.11(b), for each day until paid. 
 (e) Buyer shall prepare,
or cause to be prepared, all Returns required to be filed by any Purchased Subsidiary after the Closing Date with respect to any Pre-Closing Tax Period. Buyer shall timely file, or cause to be timely filed, all such Returns. Any such Return shall be
prepared in a manner consistent with past practice and without a change of any election or any accounting method, except as otherwise required by law, and shall be submitted by Buyer to Seller (together with schedules, statements and, to the extent
reasonably requested by Seller, supporting documentation) at least 20 days prior to the due date (including extensions) of such Return. If Seller, within 10 Business Days after delivery of any such Return, notifies Buyer in writing that it objects
to any items in such Return, the disputed items shall be resolved by mutual agreement between Buyer and Seller. Seller will pay to Buyer the amount of Taxes shown on such Return no later than two days prior to the date such Return is required to be
filed, except to the extent such Taxes were taken into account as a liability in calculating Final Working Capital. 
 (f) Buyer shall
promptly pay or cause to be paid to Seller all refunds of Taxes and interest thereon received by any Purchased Subsidiary attributable to Taxes paid by any Purchased Subsidiary with respect to any Pre-Closing Tax Period, except to the extent such
refund is taken into account as an asset in calculating Final Working Capital or is attributable to the carryback of a Tax attribute arising in a Post-Closing Tax Period or a later Tax Period. If, in lieu of receiving such refund, any Purchased
Subsidiary reduces a Tax Liability or 
  

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 increases a tax asset relating to a taxable period (or portion thereof) ending after the Closing Date, Buyer shall
promptly pay or cause to be paid to Seller the amount of such reduction in Tax Liability or, when realized, the amount of any benefit resulting from such increase in tax assets, as the case may be. Any amount required to be paid by Buyer to Seller
pursuant to this Section 8.02(f) shall be reduced by the amount of any increase in Taxes of a Purchased Subsidiary as a result of the receipt of such refund, reduction in Tax Liability or increase in tax assets. 
 ARTICLE 9 
 PERSONNEL
MATTERS 
 Section 9.01. Business Employees. Buyer shall (or will cause one of its Subsidiaries to)
(i) continue the employment on and after the Closing Date of each Business Employee who is currently employed by a Purchased Subsidiary and (ii) on or prior to the Closing Date, make an offer of employment to each other current Business
Employee, in both cases on the terms set forth in this Section 9.01. For the avoidance of doubt, current Business Employees include any Business Employee who is, immediately prior to the Closing, absent from work on account of paid time-off,
vacation, sick or personal leave (but not short-term disability or long-term disability), worker’s compensation or leave of absence (other than a leave of absence resulting from a reduction in force or a “bridging” of age and/or
service credit for purposes of an Employee Plan) and any Business Employee for whom an obligation to recall, rehire or otherwise return to employment exists under a contractual obligation or law (such as, without limitation, the Family and Medical
Leave Act, the Uniformed Services Employment and Reemployment Rights Act and any Applicable Law that requires employers to permit the return of their employees following a leave of absence (e.g., maternity leave)). Any U.S. Business Employee
who is, immediately prior to the Closing, absent from work on account of short-term disability shall receive an offer of employment from Buyer (or one of its Subsidiaries) on the terms set forth in this Section 9.01 when he or she is able and
willing to return to active employment; provided that such individual so returns within six months following the Closing Date (in this regard, Buyer or such Subsidiary shall make any reasonable accommodation required under Applicable Law to
accommodate the disability that resulted in such individual being on such short-term disability). Unless a written acceptance of an offer of employment is required by Applicable Law, a Business Employee who continues employment or who has received
an offer shall be deemed to have accepted such continuance or offer, unless such Business Employee specifically declines such continuance or offer. Business Employees described in clause (i) who continue such employment and Business Employees
described in clause (ii) (including in each case any Business Employees returning from short-term disability) who accept such offer 
  

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 of employment shall collectively be the “Transferred Employees”. Transferred Employees who are based
primarily in the United States shall collectively be the “Transferred Employees (U.S.)”. Transferred Employees who are based primarily outside of the United States shall collectively be the “Transferred Employees
(Non-U.S.)”. Buyer and Seller agree to utilize, or cause their respective Affiliates to utilize, the standard procedure set forth in Revenue Procedure 2004-53 with respect to wage reporting for Transferred Employees (U.S.). 
 Section 9.02. Maintenance of Compensation and Employee Benefits. (a) Subject to the penultimate sentence of this Section 9.02(a),
Buyer agrees that for a period of 12 months after the Closing Date (the “Relevant Period”), it will provide (or will cause to be provided) each Transferred Employee with an annual base salary and non-equity based incentive
compensation opportunity that are at least equal to his or her annual base salary and non-equity based incentive compensation opportunity in effect immediately prior to the Closing. In addition, Buyer agrees that during the Relevant Period, it will
provide (or will cause to be provided) Transferred Employees with benefits that are, in the aggregate, substantially comparable to the benefits provided to Transferred Employees immediately prior to the Closing (other than any equity-based
benefits). Notwithstanding the foregoing, the parties acknowledge and agree that the transactions contemplated by this Agreement with respect to any Member State of the European Community is a “relevant transfer” within the meaning of the
Transfer of Undertakings (Protection of Employment) Regulations 1981, as amended from time to time and the regulations and/or laws implementing the European Council Directive of March 12, 2001 (2001/23/EC) relating to the safeguarding of
employees’ rights in the event of transfers of undertakings, businesses or parts of businesses and any country implementing legislation under such Directive as amended (“EU Employment Regulations”), and the parties shall
cooperate in good faith to (i) satisfy, or cause to be satisfied, the information and consultation requirements of the EU Employment Regulations as they apply to the transactions contemplated by this Agreement and (ii) to comply with, or
cause the compliance with, any other Applicable Law relating to the continuation of employment of employees or the offering of employment to individuals. Without limiting the generality of this Section 9.02(a), Section 9.02(b) through
Section 9.02(l) shall apply to Transferred Employees, to the extent described therein. 
 (b) Buyer agrees that during the Relevant
Period it will provide (or will cause to be provided) reasonable relocation benefits for any Transferred Employee (U.S.) whose principal location of employment is relocated to a location greater than 35 miles from his or her location of employment
immediately prior to the Closing. 
  

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 (c) With respect to each Employee Plan subject to Title IV of ERISA (each, a “Seller DB
Plan”): 
 (i) effective on the Closing Date, Seller shall take all necessary actions to cause such Seller DB Plan to
be amended (if required) to provide for the direct trust-to-trust transfer of assets and liabilities as contemplated in this Section 9.02(c); 
 (ii) as soon as reasonably practicable after the Closing Date, Buyer shall establish or designate, effective as of the Closing Date, a defined benefit pension plan and trust which shall be qualified under
Section 401(a) of the Code (the “Buyer DB Plan”) and shall cover Transferred Employees who are participants of the Seller DB Plan immediately prior to the Closing (“DB Participants”), and the parties shall
cooperate in good faith to effect such establishment or designation as soon as reasonably practicable after the Closing Date. As soon as practicable following the establishment of the Buyer DB Plan, Seller and Buyer, if necessary, shall file with
the Internal Revenue Service proper notice on IRS Form 5310A regarding the transfer of assets and liabilities from the Seller DB Plan to the Buyer DB Plan; 
 (iii) as soon as practicable after the date that is four months after the Closing Date (or if later, as soon after such date as the Certifications, as hereinafter defined, are received), Seller will cause the trustees
of the Seller DB Plan to transfer the Initial Pension Amount, as hereinafter defined, to the Buyer DB Plan. As soon as practicable after the date that is six months after the Closing Date (or if later, as soon after such date as the Certifications,
if not previously received, are received), the Seller will cause the trustees of the Seller DB Plan to transfer the Final Pension Amount, as hereinafter defined, to the Buyer DB Plan. 
 For purposes of this section, the “Final Pension Amount” shall mean (x) an amount of assets of the Seller DB Plan
that would be allocated to DB Participants if the Seller DB Plan were terminated on the Closing Date and assets were allocated to participants in accordance with Section 4044 of ERISA 
 (A) using the methodology of the Pension Benefit Guaranty Corporation (“PBGC”) for plan terminations, 
 (B) using the interest rate and mortality tables used by the PBGC and effective on the Closing Date for valuing annuities, 
 (C) assuming participants not in pay status will retire and elect a lump sum under the Seller DB Plan payable at expected retirement age,
as determined in accordance with Appendix D of PBGC Regulation Part 4044, 
  

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 (D) using for purposes of determining the lump-sum value the interest rate and mortality
table specified in the Seller DB Plan for valuing lump sums and effective for lump sums made on the Closing Date, 
 (E)
without regard to any assets or liabilities associated with any account under the Seller DB Plan maintained pursuant to Section 401(h) of the Code and 
 (F) without any provisions for expenses as defined under ERISA Regulation 4044.3(a) and Part 4044, Appendix C, 
 adjusted to reflect (y) earnings on the balance of the amount described in clause (x) above outstanding (i.e., not theretofore transferred in accordance with this section) from time to time at the rate of earnings on assets
of the Seller DB Plan during the period from the Closing Date to the last day of the month ending prior to the actual date(s) of transfer, minus a portion of expenses paid from the trust proportional to the amount of assets to be transferred
in relation to the total amount of assets of the Seller DB Plan prior to the transfer, and further reduced by any benefit payments made in respect of DB Participants (and their alternate payees, if any) prior to the actual date(s) of transfer,

 less (z) the Initial Pension Amount; 
 the “Initial Pension Amount” shall be 85% of the amount described in clause (x) of the definition of Final Pension Amount, as estimated in the reasonable discretion of the enrolled actuary for
the Seller DB Plan and agreed by the actuary for the Buyer DB Plan, such agreement not to be unreasonably withheld or delayed; and 
 the
“Certifications” shall mean Buyer’s certification to Seller, and Seller’s certification to Buyer, in substantially the form attached hereto as Exhibit D, that the Buyer DB Plan and Seller DB Plan are qualified under the
applicable provisions of the Code. 
 Notwithstanding the foregoing, the transfer of assets and liabilities from the Seller DB
Plan to the Buyer DB Plan shall be required to satisfy the requirements of Section 414(l) of the Code. Buyer and Seller shall each use reasonable efforts to effect the asset and liability transfers contemplated in this Section 9.02(c) as
soon as reasonably practicable; provided that the Initial Pension Amount and the Final Pension Amount shall be transferred no later than the date that is eight months following the Closing Date; 
  

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 (iv) all Liabilities associated with any participants of the Seller DB Plan (other than
Liabilities associated with DB Participants upon the asset and liability transfers contemplated in this Section 9.02(c)) shall remain the responsibility of Seller; 
 (v) Buyer shall cause the Buyer DB Plan to credit each DB Participant with full past service credit for eligibility, vesting, benefit
accrual and all other purposes from his or her date of employment (adjusted to reflect breaks in service in accordance with the provisions of the Seller DB Plan) with Seller and its Affiliates to the extent such service was credited on behalf of
such DB Participant under the Seller DB Plan; and 
 (vi) Seller shall provide Buyer with all information requested by Buyer
with respect to DB Participants and up to 10 other participants in the Seller DB Plan that is reasonably necessary to verify the calculation of the liabilities for such DB Participants used to determine the amount of assets transferred from the
Seller DB Plan to the Buyer DB Plan as contemplated in Section 9.02(c)(iii). 
 (d)(i) As soon as reasonably practicable after the
Closing Date, Buyer shall cover (or will cause to be covered), effective as of the Closing Date and for the Relevant Period, each Transferred Employee (U.S.) under one or more other defined contribution plans and trusts intended to qualify under
Section 401(a) of the Code (collectively, the “Buyer DC Plan”) on the same basis as similarly situated employees of Buyer and its Subsidiaries (provided that to the extent that Buyer and its Subsidiaries do not have
similarly situated employees, the basis on which Transferred Employees (U.S.) shall participate in the Buyer DC Plan as of the Closing Date shall be substantially comparable to the basis on which they participated in any defined contribution plan
and trust intended to qualify under Section 401(a) of the Code that is sponsored by Seller or any of its Affiliates as in effect immediately prior to the Closing (the “Seller DC Plan”)) and on terms that reflect the service
credit provisions of Section 9.02(f). Effective as of the Closing Date or any subsequent date reasonably requested by Buyer (no later than the 60th day following the Closing Date), Transferred Employees (U.S.) shall be eligible to effect a “direct rollover” (as described in Section 401(a)(31) of the Code) of their account balances
(including participant loans) under the Seller DC Plan to the Buyer DC Plan in the form of cash and participant loan notes; provided that any such direct rollover shall be subject to the terms and conditions of the Buyer DC Plan applicable to
rollover contributions. Prior to the Closing Date, Seller shall amend and take any other action, or cause to be amended or have any other action taken, including requesting the approval of the Board of Directors or a 
  

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 committee thereof, if necessary, to vest any account balances in respect of Transferred Employees (U.S.) in the Seller DC
Plan that are unvested as of the Closing Date and make to the Seller DC Plan the pro rata portion of employer contributions, if any, in respect of Transferred Employees (U.S.) through the date immediately prior to the Closing; and 

(ii) all Liabilities associated with any participants of the Seller DC Plan (other than Liabilities associated with Transferred
Employees (U.S.) who elect a direct rollover of account balances as contemplated in this Section 9.02(d) and for whom such direct rollover is effected) shall remain the responsibility of Seller. 
 (e) With respect to each International Plan which provides retirement benefits (each, a “Seller International Retirement Plan”):

 (i) effective on the Closing Date, each Transferred Employee (Non-U.S.) who is an active participant in a Seller
International Retirement Plan shall be vested in his or her accrued benefit earned through the Closing Date; 
 (ii) effective
on the Closing Date, each Transferred Employee (Non-U.S.) who is an active participant in a Seller International Retirement Plan shall cease to be an active participant under such International Retirement Plan and shall become a participant in one
or more retirement plans established or designated by Buyer (collectively, the “Buyer International Retirement Plan”); 
 (iii) as soon as practicable after the Closing, Seller shall cause the transfer from each Seller International Retirement Plan to the Buyer International Retirement Plan of assets and liabilities which are
attributable to the Transferred Employees (Non-U.S.) who are participants as of the Closing Date in a Seller International Retirement Plan, where permissible by Applicable Law. Subject to Section 9.02(e)(iv), the amount of assets to be
transferred (the “International Transfer Amount”) shall be the amount determined as of the Closing Date, using service and compensation as of the Closing Date, and on the basis of the actuarial assumptions and valuations most
recently used to determine employer contributions to such Seller International Retirement Plan. Such determination of the amount to be transferred shall be made by Seller’s actuary and verified by Buyer’s actuary (such verification not be
unreasonably withheld). Buyer’s actuary may comment with respect to the determination of the amount to be so transferred, and any such comments shall, in good faith, be taken into account by Seller’s actuary. Within a reasonable period of
time before the transfer, Seller’s actuary shall provide such other information as may be reasonably necessary to 
  

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 permit Buyer’s actuary to comment with respect to the determination of such amount. In the event
that the trustee of the Seller International Retirement Plan is precluded from Applicable Law from transferring an amount equal to the International Transfer Amount, the transfer from the Seller International Retirement Plan to the Buyer
International Retirement Plan shall be limited as required by Applicable Law, and Seller shall separately pay to Buyer any difference between the Transfer Amount and the maximum asset transfer as subsequently determined under Applicable Law;

 (iv) where the Seller International Retirement Plan is a defined contribution plan, the Transfer Amount shall be equal to
the account balances on the Closing Date of the Transferred Employees (Non-U.S.); 
 (v) Buyer agrees to enroll the
Transferred Employees (Non-U.S.) who are participants in a Seller International Retirement Plan in a Buyer International Retirement Plan, and the Buyer International Retirement Plan shall be liable for benefits with respect to such Transferred
Employees (Non-U.S.) accrued under the Seller International Retirement Plan prior to the Closing Date; and 
 (vi) if a
transfer in accordance with Section 9.02(e)(iii) is not permissible, and a Transferred Employee (Non-U.S.) transfers his or her pension rights to a Buyer International Retirement Plan following the Closing Date, the amount of assets to be
transferred (or any additional amount required to be transferred by Seller as a result of a shortfall) with respect to him or her shall be determined by this Section 9.02(e); provided that the amount so transferred shall not be less than
the amount required to be transferred under Applicable Law. 
 (f) Buyer shall grant (or will cause to be granted) each Transferred Employee
credit for years of prior service with the Seller or any of its Affiliates or their respective predecessors for all purposes (other than for any purpose under any equity-based plan or arrangement) to the extent and for the purposes credited under an
analogous Employee Plan or International Plan prior to the Closing Date; provided that no service credit shall be granted to the extent any duplication of benefits results. 
 (g) Effective as of the Closing Date (or such later date as may be provided pursuant to the Transition Services Agreement; provided that Buyer
cooperates in good faith with Seller in the establishment, effective as of the Closing Date, of mirror health and welfare benefit plans by Buyer and its Subsidiaries), each Transferred Employee shall cease participation in the health and welfare
benefit plans of Seller and any of its Affiliates (other than a Purchased Subsidiary and its Subsidiaries to the extent such health and welfare 
  

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 benefit plan is maintained solely for the employees of a Purchased Subsidiary or one of its Subsidiaries) (each, a
“Seller Welfare Plan”) and commence participation in the health and welfare benefit plans maintained, administered or contributed to by Buyer and its Subsidiaries (each, a “Buyer Welfare Plan”). Seller and its
Affiliates (other than the Purchased Subsidiaries and their Subsidiaries) shall be responsible for claims incurred under a Seller Welfare Plan for Transferred Employees prior to the Closing Date. All claims incurred under a Buyer Welfare Plan for
Transferred Employees on or after the Closing Date shall be the responsibility of Buyer and its Subsidiaries. For purposes of this Section 9.02(g), the following claims shall be deemed to be incurred as follows: (i) life, accidental death
and dismemberment and business travel accident insurance benefits, upon the death or accident giving rise to such benefits; (ii) health or medical, dental, vision care and/or prescription drug benefits, upon provision of such services,
materials or supplies; and (iii) short- and long-term disability benefits, upon the event that gives rise to the disability. Notwithstanding the foregoing and subject to the provisions of Section 9.01 pertaining to U.S. Business Employees
on short-term disability, Seller and Buyer hereby agree that (A) any Business Employee who as of the Closing Date is receiving short-term or long-term disability benefits (or who has satisfied the requirements for receiving such benefits),
shall become eligible or continue to be eligible, as applicable, to receive such benefits under Seller’s short-term or long-term disability plan, as applicable, unless and until such individual is no longer disabled, and (B) Seller shall
be solely liable for any other liabilities, obligations or commitments arising in connection with any Business Employee who is receiving long-term disability benefits (or who has satisfied the requirements for receiving such benefits) as of the
Closing Date. 
 (h) Buyer shall (or will cause one of its Subsidiaries to): 
 (i) where reasonably possible during the plan year in which the Closing Date occurs, waive all limitations as to pre-existing conditions,
exclusions and waiting periods with respect to participation and coverage requirements applicable to the Transferred Employees (U.S.) under any health and welfare plans in which such Transferred Employees (U.S.) are eligible to participate after the
Closing Date to the extent that such limitations were waived under the applicable Employee Plan; and 
 (ii) where reasonably
possible, provide each Transferred Employee (U.S.) with credit during the plan year in which the Closing Date occurs for any co-payments and deductibles paid prior to the Closing Date in satisfying any applicable deductible or out-of-pocket
requirements under any health and welfare plans that such Transferred Employees (U.S.) are eligible to participate in after the Closing Date. 
  

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 (i) As of the Closing Date, Seller shall transfer from medical and dependent care account plans of Seller
and any of its Affiliates (other than a Purchased Subsidiary and its Subsidiaries) (each, a “Seller FSA Plan”) to one or more medical and dependent care account plans established or designated by Buyer (collectively, the
“Buyer FSA Plan”) the account balances in respect of 2006 (provided that the Closing Date occurs in 2006) of Transferred Employees (U.S.), and Buyer shall be responsible for the obligations of the Seller FSA Plans to provide
benefits to Transferred Employees (U.S.) with respect to such transferred account balances on or after the Closing Date. Each Transferred Employee (U.S.) shall be permitted to continue to have payroll deductions made as most recently elected by him
or her under the applicable Seller FSA Plan. Buyer shall reimburse Seller for benefits paid by the Seller FSA Plans in respect of claims incurred in 2006 (provided that the Closing Date occurs in 2006) to any Transferred Employee (U.S.) prior
to the Closing Date to the extent in excess of the payroll deductions made in respect of such Transferred Employee (U.S.) on or prior to the Closing Date, but only to the extent of the amount that such Transferred Employee (U.S.) continues to
contribute to the Buyer FSA Plan. 
 (j) Any Transferred Employee (U.S.) who (A) is terminated other than for cause during the Relevant
Period, or (B) rejects an offer of employment from Buyer or one of its Affiliates at Closing (which offer of employment did not meet the requirements of Section 9.02(a) or required that the Transferred Employee (U.S.) relocate his or her
principal location of employment to a location greater than 35 miles from his or her location of employment immediately prior to the Closing) and does not otherwise accept another offer of employment from Buyer or one of its Affiliates at Closing,
shall be entitled to severance from Buyer in an amount equal to what he or she would have received under the severance plan of Seller or its Affiliates (as in effect on the date hereof, other than immaterial changes made to avoid or minimize the
effect of the application of Section 409A of the Code and the Treasury regulations and guidance promulgated thereunder) applicable to such Transferred Employee (U.S.) (taking into account any post-Closing service with Buyer or any of its
Subsidiaries), assuming for purposes of this Section 9.02(j) that such Transferred Employee (U.S.) had satisfied any requirements for the receipt of severance under such plan or policy; provided that in order to receive an enhanced
severance benefit such Transferred Employee (U.S.) executes, delivers and does not revoke a general release in favor of Seller, Buyer and their respective Affiliates. 
 (k) Any Transferred Employee (U.S.) shall carry over to Buyer or one of its Affiliates any “banked” time that he or she has accrued as of immediately prior to the Closing under the policy of Seller and its
Affiliates with respect to paid time-off. With respect to any such Transferred Employee (U.S.) whose accrued “banked” time at the end of the calendar year in which the Closing occurs is in excess of the amount of “banked” time
that such Transferred Employee (U.S.) would have been entitled to accrue during an 18-month period under the 
  

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 policy of Seller and its Affiliates with respect to paid time-off (as in effect immediately prior to the Closing), Buyer
may, at its election, pay (or may cause to be paid) cash to such Transferred Employee (U.S.) in lieu of such excess accrued “banked” time in accordance with the policy of Seller and its Affiliates with respect to the cash-out of excess
“banked” time (as in effect immediately prior to the Closing), and any such excess accrued “banked” time that is not so cashed out shall continue to be carried over. With respect to any such Transferred Employee (U.S.) whose
employment terminates for any reason, Buyer shall pay cash to such Transferred Employee (U.S.) in lieu of any accrued “banked” time that he or she has accrued as of the effective date of such termination in accordance with the policy of
Seller and its Affiliates with respect to the cash-out of accrued time “banked” by terminated employees (as in effect immediately prior to the Closing). The treatment of any accrued but unused vacation, sick or personal leave or time-off
in respect of any Transferred Employee (Non-U.S.) shall be in accordance with Applicable Law. 
 (l) With respect to each Employee Plan that
provides retiree medical benefits to Business Employees and that is funded through a voluntary employee’s beneficiary association (“VEBA”) and an account under Section 401(h) of the Code (collectively, the “Seller
Retiree Medical Plan”): 
 (i) effective as of the Closing Date, Seller shall take all necessary actions to cause the
appropriate plan and trust documents to be amended (if and to the extent necessary) to provide for the direct trust-to-trust transfer of assets and liabilities as contemplated in this Section 9.02(l), including requesting the approval of the
Board of Directors or a committee thereof, if necessary; 
 (ii) as soon as reasonably practicable after the Closing Date,
Buyer shall establish or designate, effective as of the Closing Date, a retiree medical plan and a VEBA or VEBAs which shall be qualified under Section 501(c)(9) of the Code (collectively, the “Buyer Retiree Medical Plan”) on
behalf of Transferred Employees (U.S.), and the parties shall cooperate in good faith to effect such establishment or designation as soon as reasonably practicable after the Closing Date; 
 (iii) as soon as practicable after the later of (x) four months after the Closing Date and (y) the dates of receipt by Buyer and
Seller of Buyer’s certification to Seller and Seller’s certification to Buyer, in substantially the form attached hereto as Exhibit E, that the Buyer’s VEBA(s) and Seller’s VEBA(s) are qualified under the applicable provisions of
the Code, the assets and liabilities associated with all Transferred Employees (U.S.) (and their spouses and other dependents, if any) shall be transferred from the Seller’s VEBA(s) to the Buyer’s VEBA(s). The amount of assets accumulated
to provide retiree medical 
  

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 benefits in the Seller’s account VEBA(s) that will be transferred shall be the aggregate amount of
assets in the Seller’s VEBA(s), multiplied by a fraction, the numerator of which is the accumulated postretirement benefit obligation (APBO) in the Seller Retiree Medical Plan for the Transferred Employees (U.S.) (and their spouses and
other dependents, if any) immediately prior to the Closing Date, and the denominator of which is the APBO for all participants and their spouses and other dependents (if any) in the Seller Retiree Medical Plan, including Transferred Employees (U.S.)
(and their spouses and other dependents, if any) at such date. The plan provisions, census data, valuation methods and actuarial assumptions used to determine the APBO shall be the same as those used by Seller to determine the SFAS 106 curtailment
charge for the transactions contemplated hereby. The assets to be transferred shall be credited with earnings on the balance outstanding from time to time at the rate of earnings of the entire trust on assets of the Seller’s VEBA(s) during the
period from the Closing Date to the last day of the month ending prior to the actual date(s) of transfer, minus a portion of expenses paid from the trust proportional to the amount of assets to be transferred in relation to the total amount
of assets of the Seller’s VEBA(s) prior to the transfer, and further reduced by any benefit payments made in respect of Transferred Employees (U.S.) (and their spouses and other dependents, if any) prior to the actual date(s) of transfer. Buyer
and Seller shall each use reasonable efforts to effect the asset and liability transfers contemplated in this Section 9.02(l) as soon as reasonably practicable; 
 (iv) all Liabilities associated with any participants of the Seller Retiree Medical Plan (other than Liabilities associated with
Transferred Employees (U.S.) and their spouses and other dependants, if any, upon the asset and liability transfers contemplated in this Section 9.02(l)) shall remain the responsibility of Seller; 
 (v) Buyer shall cause the Buyer Retiree Medical Plan to credit each Transferred Employee (U.S.) with full past service credit for
eligibility, vesting, benefit accrual and all other purposes from his or her date of employment (adjusted to reflect breaks in service in accordance with the provisions of the Seller Retiree Medical Plan) with Seller and its Affiliates to the extent
such service was credited on behalf of such Transferred Employee (U.S.) under the Seller Retiree Medical Plan. 
 (vi) Seller
shall provide Buyer with all information requested by Buyer with respect to Transferred Employees (U.S.) and up to 10 other participants in the Seller Retiree Medical Plan that is reasonably necessary to verify the calculation of the liabilities for
such Transferred Employees used to determine the amount of assets transferred from the Seller Retiree Medical Plan to the Buyer Retiree Medical Plan as contemplated by Section 9.02(l)(iii); 
  

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 (vii) the assets transferred pursuant to Section 9.02(l)(iii) plus all future
investment earnings thereon shall be exclusively used to pay for retiree medical benefits and related administration costs for Transferred Employees (U.S.) (and their spouses or other dependents, if any) and, for so long as the provisions of the
Buyer Retiree Medical Plan are substantially the same as those of the Seller Retiree Medical Plan (as of the Closing Date) for other employees (including spouses and other dependents thereof) of the Business to the extent permitted by Applicable
Law; and 
 (viii) for the avoidance of doubt, effective as of the Closing Date, Transferred Employees (U.S.) shall be
eligible to receive benefits under the Buyer Retiree Medical Plan and shall not be eligible to receive benefits under the Seller Retiree Medical Plan. 
 Section 9.03. Employee Communications. The initial communication with Business Employees relating to the transactions contemplated by the Transaction Documents shall be agreed upon by the parties.
Thereafter, until the Closing, the parties agree to consult with each other before making any further communication with Business Employees of a similar widely disseminated nature, and neither party shall make any such further communication that is
inconsistent with communications previously agreed upon unless the content thereof shall have been agreed upon by the other party (it being understood that Seller may respond to questions from Business Employees on matters within the scope of the
initial communication and not inconsistent therewith). 
 Section 9.04. Acknowledgement. Buyer and Seller acknowledge and agree
that nothing contained in this Article 9 shall be construed to limit in any way the ability of Buyer or its Affiliates to terminate the employment of any Transferred Employee from and after the Closing Date; provided that such termination is
in accordance with Applicable Law. 
 Section 9.05. No Third-party Beneficiaries. Without limiting the generality of
Section 13.07, nothing in this Article 9, express or implied, is intended to confer any rights, benefits, remedies, obligations or liabilities under this Agreement upon any Person, including any current or former Business Employee (including
any Transferred Employee), other than the parties to this Agreement and their respective successors and assigns. 
  

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 ARTICLE 10 
 CONDITIONS TO CLOSING 
 Section 10.01. Conditions to
Obligations of Buyer and Seller. The obligations of Buyer and Seller to consummate the Closing are subject to the satisfaction (or, to the extent permitted by Applicable Law, waiver by each party) of the following conditions: 
 (a) any applicable waiting period under the HSR Act relating to the transactions contemplated hereby shall have expired or been
terminated; 
 (b) all approvals pursuant to Competition Laws listed on Section 10.01(b) of the Disclosure Schedule shall
have been obtained; 
 (c) all approvals of Governmental Authorities listed on Section 10.01(c) of the Disclosure
Schedule shall have been obtained; 
 (d) no provision of any Applicable Law shall prohibit the consummation of the Closing or
subject the Buyer or Seller to any penalty or other condition that would reasonably be expected to have a Material Adverse Effect; and 
 (e) the Restructuring with respect to TI Korea shall have been completed. 
 Section 10.02.
Conditions to Obligation of Buyer. The obligation of Buyer to consummate the Closing is subject to the satisfaction (or, to the extent permitted by Applicable Law, waiver by Buyer) of the following further conditions: 
 (a)(i) Seller shall have performed in all material respects all of its obligations hereunder required to be performed by it on or prior to
the Closing Date, (ii) the representations and warranties of Seller contained in this Agreement (disregarding all materiality and Material Adverse Effect qualifications) shall be true when made and at and as of the Closing Date, as if made at
and as of such date, with only such exceptions as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect and (iii) Buyer shall have received a certificate signed by an officer of Seller to the
foregoing effect; 
 (b) all consents of third parties required by the agreements listed in Section 10.02(b) of the
Disclosure Schedule shall have been obtained; 
  

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 (c) all governmental licenses, authorizations, permits, consents and approvals required
to carry on the Business as now conducted shall have been transferred to or otherwise obtained by Buyer on or before the Closing Date, with only such exceptions as would not reasonably be expected to have a Material Adverse Effect; 
 (d) Buyer shall have received all documents it may reasonably request relating to (i) the existence of Seller and its Subsidiaries
(including the Purchased Subsidiaries) and (ii) the authority of Seller for this Agreement, all in form and substance reasonably satisfactory to Buyer; and 
 (e) The proceeds of the Debt Financing shall have been received by Buyer, or shall be fully available to Buyer, on substantially the terms
and conditions set forth in the Debt Commitment Letter (including after giving effect to any changes pursuant to the “market flex” provisions thereof); provided that Buyer shall not be entitled to assert the failure of the condition
set forth in this Section 10.02(e) if the failure of the Debt Financing to be consummated has resulted solely from the failure of the Equity Financing to be consummated. 
 Section 10.03. Conditions to Obligation of Seller. The obligation of Seller to consummate the Closing is subject to the satisfaction (or, to
the extent permitted by Applicable Law, waiver by Seller) of the following further conditions: 
 (a)(i) Buyer shall have
performed in all material respects all of its obligations hereunder required to be performed by it at or prior to the Closing Date, (ii) the representations and warranties of Buyer contained in this Agreement shall be true in all material
respects when made and at and as of the Closing Date, as if made at and as of such date and (iii) Seller shall have received a certificate signed by an officer of Buyer to the foregoing effect; and 
 (b) Seller shall have received all documents it may reasonably request relating to the existence of Buyer and the authority of Buyer for
this Agreement, all in form and substance reasonably satisfactory to Seller. 
 ARTICLE 11 
 SURVIVAL; INDEMNIFICATION 
 Section 11.01. Survival. The representations and warranties of the parties hereto contained in this Agreement shall survive the Closing until April 30, 2007; provided that (i) the
representations and warranties contained in Sections 3.17 
  

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 (Finders’ Fees) and 4.07 (Finders’ Fees) shall survive indefinitely or until the latest date
permitted by law, (ii) the representations and warranties contained in Section 3.20 (Environmental Compliance) shall survive until the fifth anniversary of the Closing Date and (iii) the representations and warranties contained
in Article 8 (Tax Matters) shall survive until 30 days after the expiration of the applicable statute of limitations (giving effect to any waiver, mitigation or extension thereof). The covenants and agreements of the parties hereto contained
in this Agreement shall survive the Closing indefinitely or for the shorter period explicitly specified therein, except that for such covenants and agreements that survive for such shorter period, breaches thereof shall survive indefinitely or until
the latest date permitted by law. Notwithstanding the preceding two sentences, any breach of covenant, agreement, representation or warranty in respect of which indemnity may be sought under this Agreement shall survive the time at which it would
otherwise terminate pursuant to the preceding two sentences, if notice of the inaccuracy thereof giving rise to such right of indemnity shall have been given to the party against whom such indemnity may be sought prior to such time. 
 Section 11.02. Indemnification. (a) Effective at and after the Closing, Seller indemnifies Buyer and its Subsidiaries (including the
Purchased Subsidiaries) and each of their respective Affiliates, officers, directors, employees, agents and Representatives (each, a “Buyer Indemnified Party”) against and agrees to hold each of them harmless from any and all
damage, loss, Liability and expense (including reasonable expenses of investigation and reasonable attorneys’ fees and expenses in connection with any action, suit or proceeding whether involving a third party claim or a claim solely between
the parties hereto) (“Damages”) incurred or suffered by a Buyer Indemnified Party arising out of: 
 (i)
subject to the terms of Section 11.03(g)(v), any misrepresentation or breach of warranty (each such misrepresentation and breach of warranty, a “Warranty Breach”) or breach of covenant or agreement made or to be performed by
Seller pursuant to this Agreement; 
 (ii) any Excluded Liability (other than an Identified Environmental Liability);

 (iii) any Purchased Subsidiary Liability; 
 (iv) the matters described in item 1 or 2 of Section 3.11 of the Disclosure Schedule (the “Specified Matters”);

 (v) any Identified Environmental Liability; 
 (vi) any of the matters described in Section 11.02(a)(vi) of the Disclosure Schedule; 
  

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 (vii) any of the matters described in Section 11.02(a)(vii) of the Disclosure
Schedule; or 
 (viii) the restructuring described in item 8 of Section 3.08(f) of the Disclosure Schedule and item 1 of
Section 3.09 of the Disclosure Schedule to the extent that the amount of such Damages exceeds the reserve reflected in Final Working Capital with respect to such restructuring; 
 provided that (A) Seller shall not be liable for Warranty Breaches, Specified Matters, Infringement Claims (as defined in Section 11.02(a)(vii) of the Disclosure Schedule) or TSA Consequential Damages
(as defined in the Transition Services Agreement) unless the aggregate amount of Damages with respect to all Warranty Breaches, the Specified Matters, Infringement Claims and TSA Consequential Damages exceeds $30,000,000 and then only to the extent
of such excess (the “Seller General Basket”), (B) Seller’s maximum aggregate liability for all Warranty Breaches, the Specified Matters, the Identified Environmental Liabilities, all Infringement Claims and all TSA
Consequential Damages shall not exceed $300,000,000 (the “Seller Cap”) and (C) with respect to Infringement Royalty/Cover Damages (as defined in Section 11.02(a)(vii) of the Disclosure Schedule) under clause
(vii) above that are indemnifiable after exhaustion of the Seller General Basket, Seller’s liability under this Agreement shall be limited to 80% of such Infringement Royalty/Cover Damages in excess of the Seller General Basket (and
subject, for the avoidance of doubt, to the Seller Cap); and provided further that (1) Seller shall not be liable with respect to any single claim or group of related claims with respect to a Warranty Breach or an Infringement Claim that
results in Damages of $100,000 or less (and such Damages shall not be applied to the Seller General Basket), (2) with respect to indemnification by Seller for Identified Environmental Liabilities, Seller shall not be liable unless the aggregate
amount of Damages with respect to all such Identified Environmental Liabilities exceeds $497,000 and then only to the extent of such excess (the “Seller Environmental Basket”) and (3) the Seller General Basket, the Seller Cap
and clause (1) of this proviso shall not apply with respect to Warranty Breaches related to the Excluded Representations. For the avoidance of doubt, Seller shall not be liable for any Damages relating to a Warranty Breach of Section 3.07
or 8.01(a) to the extent a Buyer Indemnified Party has been compensated for such Damages pursuant to Seller’s performance of its obligations to pay Taxes to the relevant Taxing Authority or reimburse Buyer pursuant to Article 8. 
 (b) Effective at and after the Closing, Buyer indemnifies Seller and its Subsidiaries and each of their respective Affiliates, officers, directors,
employees, agents and Representatives (each, a “Seller Indemnified Party”) against and agrees to hold each of them harmless from any and all Damages incurred or suffered by Seller or any of its Affiliates arising out of: 

(i) any Warranty Breach or breach of covenant or agreement made or to be performed by Buyer pursuant to this Agreement; or 

 

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 (ii) any Assumed Liability (except, with respect to the Specified Matters, any Identified
Environmental Liability, any Warranty Breach or any Infringement Claim, to the extent that Seller is required to indemnify the Buyer Indemnified Parties pursuant to Section 11.02(a)); 
 provided that (A) Buyer shall not be liable for Warranty Breaches or TSA Consequential Damages unless the aggregate amount of Damages with respect to all
Warranty Breaches and TSA Consequential Damages exceeds $30,000,000 and then only to the extent of such excess (the “Buyer Basket”) and (B) Buyer’s maximum liability for all such Warranty Breaches and TSA Consequential
Damages shall not exceed $300,000,000 (the “Buyer Cap”); and provided further that (1) Buyer shall not be liable with respect to any single claim or group of related claims with respect to a Warranty Breach that results
in Damages of $100,000 or less (and such Damages shall not be applied to the Buyer Basket) and (2) the Buyer Basket, the Buyer Cap and clause (1) of this proviso shall not apply with respect to Warranty Breaches related to the Excluded
Representations. 
 (c) All Warranty Breaches (except for Warranty Breaches with respect to Section 3.08(a) or Section 3.10(a)(xi))
shall, for purposes of Sections 11.02(a) and 11.02(b), be determined without giving effect to any qualification in the representations and warranties of Seller or Buyer as to materiality, in all material respects, Material Adverse Effect, material
adverse effect or words of similar effect. 
 Section 11.03. Procedures. (a) Any party(ies) entitled to indemnification
under Section 11.02 (the “Indemnified Party”) agrees to give prompt notice to the party from whom the Indemnified Party is entitled to seek indemnification (the “Indemnifying Party”) of the assertion of any
claim, or the commencement of any suit, action or proceeding in respect of which the Indemnified Party is entitled to seek indemnification under Section 11.02 (it being understood that a party’s entitlement to indemnification shall be
determined without regard to the application of (i) the Seller General Basket, Seller Environmental Basket and Buyer Basket (collectively, the “Baskets”) and (ii) the Seller Cap and Buyer Cap (collectively, the
“Caps”)) and will provide the Indemnifying Party such information with respect thereto that the Indemnifying Party may reasonably request. The failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party of
its obligations hereunder, except to the extent such failure shall have adversely prejudiced the Indemnifying Party. 
 (b) Seller shall
control and appoint lead counsel for the defense of any claim asserted by any third party (a “Third Party Claim”) that is an Excluded Liability. In addition, the Indemnifying Party shall be entitled to control and 
  

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 appoint lead counsel for the defense of any Third Party Claim or any Environmental Matter if (i) it is reasonably
expected that indemnification payments to be made by the Indemnifying Party in respect of such Third Party Claim or Environmental Matter in accordance with Section 11.02 (taking into account the Baskets and the Caps) will be greater than the
harm suffered by the Indemnified Party as a result of such Third Party Claim, including any injunctive, equitable or other non-monetary relief sought by such third party, (ii) the Indemnifying Party shall acknowledge in writing its obligation
to indemnify the Indemnified Party for any Damages relating to such Third Party Claim or Environmental Matter (subject to the limitations on indemnification set forth in this Article 11, including the Baskets and the Caps) and (iii) the
Indemnifying Party shall notify the Indemnified Party that it has elected to assume such defense promptly but in any event within 30 days after receipt of the notice with respect to such Third Party Claim referred to in Section 11.02(a) or,
with respect to Environmental Matters, in a timely manner given the facts and circumstances and changes thereto or development thereof over time (it being understood that the Indemnified Party shall be entitled to take such actions as may be
required to defend such Third Party Claim, including if necessary seeking extensions of time to respond to pleadings and the like, prior to the receipt of such acknowledgement within the 30-day period referred to above). The Indemnified Party shall
be entitled to control and appoint lead counsel for the defense of any Third Party Claim if the Indemnifying Party is not entitled to, or fails to, elect to assume the defense of such claim pursuant to the foregoing sentence, or thereafter if the
Indemnifying Party fails or ceases to prosecute such claim with reasonable diligence. 
 (c) The party controlling the defense of any Third
Party Claim or Environmental Matter in accordance with the provisions of this Section 11.03 (the “Controlling Party”) (i) shall pay all the costs of such defense (including attorneys’ fees), provided that if
the Indemnified Party is the Controlling Party, then such costs shall be considered Damages arising out of such Third Party Claim for purposes of Section 11.02, and (ii) shall obtain the prior written consent of the other party (the
“Non-Controlling Party”) before entering into any settlement of such Third Party Claim or Environmental Matter, such consent not to be unreasonably withheld (A) if the settlement does not impose injunctive or other equitable
relief against the Non-Controlling Party or (B) with respect to Environmental Matters, if the settlement is consistent with the terms of Section 11.03(g). The Non-Controlling Party shall be entitled to participate in the defense of such
Third Party Claim and to employ separate counsel of its choice for such purpose. The fees and expenses of such separate counsel shall be paid by the Non-Controlling Party, unless in the reasonable judgment of counsel to the Non-Controlling Party
there is a conflict of interest between the Controlling Party and the Non-Controlling Party, in which case such fees and expenses shall be paid by the Controlling Party (provided that if the Indemnified Party is the Controlling 
  

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 Party, then such fees and expenses shall be considered Damages arising out of such Third Party Claim for purposes of
Section 11.02). In any Third Party Claim where an Indemnified Party is the Non-Controlling Party and which involves any material customer or supplier of the Indemnified Party or its Affiliates, such participation shall in any event include the
right of the Non-Controlling Party to engage in direct discussions with the other parties to such Third Party Claim, including discussions concerning the claim and the potential resolution thereof; provided that (1) such participation
right shall not alter the rights of the Controlling Party to control and direct the defense of such Third Party Claim, including the right to reject or accept any resolution proposed by the Non-Controlling Party in such Controlling Party’s sole
discretion, and (2) the Non-Controlling Party shall disclose to such other parties that in conducting any such discussions, the Non-Controlling Party is acting on its own behalf and not as a Representative of the Controlling Party and the
Non-Controlling Party is not authorized to agree to any settlement with respect to such Third Party Claim. With respect to any Third Party Claim relating to the Specified Matters, the Controlling Party shall retain the legal counsel identified in
Section 11.03(c) of the Disclosure Schedule with respect thereto and shall not replace or discharge such counsel absent good cause. 
 (d) Each party shall cooperate, and cause their respective Affiliates to cooperate, in the defense or prosecution of any Third Party Claim and shall furnish or cause to be furnished such records, information and testimony, and attend such
conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested in connection therewith. In furtherance and not in limitation of the foregoing, in connection with the defense of any Infringement Claim, Buyer shall, to
the extent requested by Seller, assert (or, in Buyer’s sole discretion, allow Seller to assert on its behalf) against the Person making such Infringement Claim any claims for infringement or misappropriation of Business Intellectual Property
Rights for which there is a reasonable basis in law and fact. A Controlling Party shall, to the extent requested by the Non-Controlling Party, (i) keep the Non-Controlling Party reasonably informed relating to the progress of any significant
matter (including providing the Non-Controlling Party with periodic summaries of the status of such Third Party Claim and the amounts spent with respect thereto and copies of all material plans, reports and external correspondence and notifying the
Non-Controlling Party of, and giving the Non-Controlling Party the opportunity to attend, scheduled voice or in-person conferences with regulators or other third parties) and (ii) provide the Non-Controlling Party with a reasonable period of
time, given the specific circumstances, to permit such party to comment on any material proposed actions, and to consider in good faith any such comments. 
 (e) Each Indemnified Party must mitigate as required by Applicable Law any loss for which such Indemnified Party seeks indemnification under this Agreement. If such Indemnified Party mitigates its loss after the
Indemnifying 
  

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 Party has paid the Indemnified Party under any indemnification provision of this Agreement in respect of that loss, the
Indemnified Party must notify the Indemnifying Party and pay to the Indemnifying Party the extent of the value of the benefit to the Indemnified Party of that mitigation (less the Indemnified Party’s reasonable costs of mitigation) within two
Business Days after the benefit is received. 
 (f) Each Indemnified Party shall use its reasonable efforts to collect any amounts available
under insurance coverage, or from any other Person alleged to be responsible, for any Damages payable under Section 11.02. 
 (g) In
addition to the provisions set forth in Section 11.03(a), 11.03(b), 11.03(c), 11.03(e) and 11.03(f) above, with respect to any matter for which Buyer or its Affiliates seek indemnification relating to a Warranty Breach of Section 3.20, an
Excluded Environmental Liability, an Identified Environmental Liability or any other environmental matter otherwise subject to indemnification under the terms of this Agreement (“Environmental Matters”): 
 (i) Except as set forth in Section 11.03(b), Buyer will retain the defense, control and resolution of any Environmental Matters,
including disclosure, investigation, negotiation, performance and settlement of such matters. With respect to any Environmental Matters, the Controlling Party shall, to the extent requested by the Non-Controlling Party, (1) keep the other party
reasonably informed relating to the progress of any significant matter (including providing the Non-Controlling Party with copies of all material plans, reports and external correspondence and notifying the other party of, and giving the
Non-Controlling Party the opportunity to attend, scheduled voice or in-person conferences with regulators or other third parties), (2) provide the other party with a reasonable period of time, given the specific circumstances, to permit such
party to comment on any material proposed actions, and to consider in good faith any such comments and (3) not unreasonably interfere with the ordinary course operation of the business at any Real Property or with the continuing use of the Real
Property in the manner being used as of the Closing Date; 
 (ii) Buyer agrees to, and shall cause its Affiliates to,
cooperate with Seller in providing all necessary and reasonably requested access to properties, facilities, employees and records and timely providing Seller with copies of all communications relating to such matter received from any Governmental
Authority or third party; 
 (iii) Each party agrees to cooperate, and to cause their respective Affiliates to cooperate, in
the defense or prosecution of any Environmental Matter and shall provide to the other party with copies of 
  

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 any and all material environmental audits, studies, action plans, tests and communications with any
Governmental Agency or third party relating to investigatory, remedial or other activities with respect to any property which may be subject to a claim for indemnification for any Environmental Matters; 
 (iv) Seller’s obligation to indemnify Buyer or any of its Affiliates shall be limited to those Damages which must be incurred, based
upon (1) the use of a reasonable and cost-effective method available under the circumstances and (2) the industrial or commercial use of the property as of the Closing Date, to meet, in a reasonably cost-effective manner, the requirements
of any applicable Environmental Law or to meet the demands of any applicable Governmental Authority or as required by any judicial or administrative resolution, order or settlement agreement of a Third Party Claim otherwise complying with the terms
of this Agreement. To the extent necessary to achieve the purposes set forth in this Section, Buyer and its Affiliates agree that engineering or institutional controls and a deed or other restriction are each a reasonable cost-effective method, so
long as such control or restriction does not materially limit the industrial or commercial activities being performed on the applicable property as of the Closing Date. 
 (v) Seller shall have no liability under this Agreement for any Damages relating to Environmental Matters to the extent arising out of any
sampling of the soil or groundwater or any disclosure, report, or communication to any Governmental Authority or third party by Buyer or any of its Affiliates (or by a Third Party Buyer of any Real Property as described in clause (B) below), or
out of the initiation or encouragement by Buyer or any of its Affiliates of any action by any Governmental Authority or third party unless: 
 (A) Buyer or any of its Affiliates reasonably believes it must investigate, take action, initiate or encourage any such action due to (1) the requirements of any applicable law, including any Environmental Law,
(2) a need to respond to any Third Party Claim against Buyer or its Affiliates, (3) the discovery of a condition first identified as a result of construction activities which would have been undertaken in the ordinary course of operating
the site in the manner in which it is operating as of the Closing Date, in the absence of an indemnity or (4) the discovery of a condition in the ordinary course of operating the site in the manner in which it is operating as of the Closing
Date which condition, if unaddressed, would reasonably be expected to result in a material Third Party Claim or imminent and substantial risk to human health; 
  

 80 

 (B) Buyer or any of its Affiliates reasonably believes that it (or any Third Party Buyer)
must investigate, take action, initiate or encourage any such action to meet the demands of a reasonable third party buyer or its financing parties (collectively, “Third Party Buyers”) in connection with the sale of the applicable
Real Property to such third party or any other transaction involving the direct or indirect transfer of, or related encumbrance on, the applicable Real Property; provided that the liability of Seller under this Agreement for any Damages for
any Environmental Matters triggered by such Third Party Buyer requirement shall be limited to 50% of any Damages incurred by Buyer or its Affiliates, to be determined after the application of the Baskets and Caps; and 
 (C) Buyer or any of its Affiliates investigates, takes action, initiates or encourages any such action other than as described above, in
which case the liability of Seller under this Agreement for any Damages relating to Environmental Matters triggered by such investigation, action, initiation or encouragement shall be limited to 20% of any Damages incurred by Buyer or its
Affiliates, to be determined after the application of the Baskets and Caps. 
 Section 11.04. Calculation of Damages.
(a) The amount of any Damages payable under Section 11.03 by the Indemnifying Party shall be net of any (i) amounts actually recovered by the Indemnified Party under applicable insurance policies, or from any other Person alleged to
be responsible therefor and (ii) Tax benefit actually realized by the Indemnified Party arising from the incurrence or payment of any such Damages (taking into account any current or future Tax costs). In computing the amount of any such Tax
benefit, the Indemnified Party shall be deemed to fully utilize, at the highest applicable marginal tax rate then in effect, all Tax items arising from the incurrence or payment of any indemnified Damages, with such Tax items to be the last items
taken into account. If the Indemnified Party receives any amounts under applicable insurance policies, or from any other Person alleged to be responsible for any Damages, subsequent to an indemnification payment by the Indemnifying Party, then such
Indemnified Party shall promptly reimburse the Indemnifying Party for any payment made or expense incurred by such Indemnifying Party in connection with providing such indemnification payment up to the amount received by the Indemnified Party, net
of any expenses incurred by such Indemnified Party in collecting such amount. 
 (b) The Indemnifying Party shall not be liable under
Section 11.02 for any (i) Damages to the extent that the Liability relating thereto has been taken into account as a liability in calculating Final Working Capital pursuant to the Purchase Price adjustment under Section 2.11 or
(ii) punitive Damages (other than any punitive Damages payable to a third party). 
  

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 (c) Any indemnification payment made pursuant to this Agreement shall be treated by Buyer and Seller as
an adjustment to the Purchase Price for Tax purposes. 
 Section 11.05. Assignment of Claims. If the Indemnified Party receives
any payment from an Indemnifying Party in respect of any Damages pursuant to Section 11.02 and the Indemnified Party could have recovered all or a part of such Damages from a third party (a “Potential Contributor”) based on the
underlying Claim asserted against the Indemnifying Party, the Indemnified Party shall assign such of its rights to proceed against the Potential Contributor as are necessary to permit the Indemnifying Party to recover from the Potential Contributor
the amount of such payment; provided that the Indemnified Party shall not be required to assign any right to proceed against a Potential Contributor if the Indemnified Party determines in its reasonable discretion that such assignment would
be materially detrimental to its reputation, future business prospects or customer, supplier, or employee relationships. 
 Section 11.06. Exclusivity. Except as specifically set forth in this Agreement or any other Transaction Document, Buyer waives any rights and claims Buyer may have against Seller, whether in law or in equity, relating to the
pre-Closing conduct of the Business or the transactions contemplated hereby. The rights and claims waived by Buyer include claims for contribution or other rights of recovery arising out of or relating to any Environmental Law (whether now or
hereinafter in effect), claims for breach of contract, breach of representation or warranty, negligent misrepresentation and all other claims for breach of duty, but shall not include claims for fraud. After the Closing, Section 7.05, Article
11 and Section 13.11 will provide the exclusive remedy for any misrepresentation, breach of warranty, covenant or other agreement or other claim arising out of this Agreement or the transactions contemplated hereby. 
 ARTICLE 12 
 TERMINATION

 Section 12.01. Grounds for Termination. This Agreement may be terminated at any time prior to the Closing: 
 (a) by mutual written agreement of Seller and Buyer; 
 (b) by either Seller or Buyer if the Closing shall not have been consummated on or before June 30, 2006; provided that neither
Buyer nor Seller shall be able to terminate this Agreement pursuant to this clause (b) if the failure of the Closing to be consummated by such date is caused by its breach of its obligations hereunder; or 
  

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 (c) by either Seller or Buyer if consummation of the transactions contemplated hereby
would violate any nonappealable final order, decree or judgment of any Governmental Authority having competent jurisdiction. 
 The party desiring to
terminate this Agreement pursuant to clauses 12.01(b) or 12.01(c) shall give notice of such termination to the other party. 
 Section 12.02. Effect of Termination. If this Agreement is terminated as permitted by Section 12.01, such termination shall be without liability of either party (or any stockholder or Representative of such party) to the
other party to this Agreement; provided that if such termination shall result from the willful (i) failure of either party to fulfill a condition to the performance of the obligations of the other party, (ii) failure to perform a
covenant of this Agreement or (iii) breach by either party hereto of any representation or warranty or agreement contained herein, such party shall be fully liable for any and all Damages incurred or suffered by the other party as a result of
such failure or breach. The provisions of Sections 6.01, 13.02, 13.03, 13.04, 13.05, 13.06, 13.07, 13.08 and 13.10 shall survive any termination hereof pursuant to Section 12.01. 
 ARTICLE 13 
 MISCELLANEOUS 
 Section 13.01. Notices. All notices, requests and other communications to any party hereunder shall be in writing (including facsimile
transmission) and shall be given, 
 if to Buyer, to: 
  

					
		 	S&C Purchase Corp.
		 	c/o Bain Capital Partners, LLC
		 	745 Fifth Avenue
		 	New York, New York 10151
		 	Attention:	 	Ed Conard
		 		 	Paul Edgerley
		 		 	Stephen M. Zide
		 	Facsimile No.: (212) 421-2225

  

 83 

							
		 	with a copy to:
			
		 		 	Kirkland & Ellis LLP
		 		 	200 E. Randolph Drive
		 		 	Chicago, Illinois 60601
		 		 	Attention:	  	Jeffrey C. Hammes, P.C.
		 		 		  	Matthew E. Steinmetz, P.C.
		 		 		  	Jeffrey W. Richards
		 		 	Facsimile No.: (312) 861-2200
		
		 	if to Seller, to:
			
		 		 	Texas Instruments Incorporated
		 		 	12500 TI Boulevard
		 		 	Dallas, Texas 75266
		 		 	Attention: General Counsel
		 		 	Facsimile No.: (214) 480-5061
			
		 		 	and
			
		 		 	Texas Instruments Incorporated
		 		 	7839 Churchill Way MS 3995
		 		 	Dallas, Texas 75251
		 		 	Attention: Vice President of Corporate Development
		 		 	Facsimile No.: (972) 917-3804
		
		 	with a copy to:
			
		 		 	Davis Polk & Wardwell
		 		 	450 Lexington Avenue
		 		 	New York, New York 10017
		 		 	Attention: Paul R. Kingsley
		 		 	Facsimile No.: (212) 450-3800

 or such other address or facsimile number as such party may hereafter specify for the purpose by notice to the
other parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of
receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt. 
 Section 13.02. Amendments and Waivers. (a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment,
by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective. 
  

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 (b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive
of any rights or remedies provided by law. 
 Section 13.03. Expenses. Except as otherwise provided herein, all costs and
expenses incurred in connection with this Agreement (a) by Seller or any of its Subsidiaries (including, for costs incurred prior to the Closing, the Purchased Subsidiaries) shall be paid by Seller and (b) by Buyer or any of its Affiliates
(including, for costs incurred following the Closing, the Purchased Subsidiaries) shall be paid by Buyer. 
 Section 13.04.
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that no party may assign, delegate or otherwise
transfer any of its rights or obligations under this Agreement without the consent of each other party hereto. Notwithstanding the foregoing, Buyer shall have the right to assign all or certain provisions of this Agreement, or any interest herein,
and may delegate any duty or obligation hereunder, without the consent of Seller, to (i) any Affiliate of Buyer, (ii) any purchaser of any or all of the assets or equity interests (whether by merger, recapitalization, reorganization or
otherwise) of Buyer or the Business or (iii) any of Buyer’s financing sources as collateral; provided that, in the case of each of clauses (i)-(iii), no such assignment or delegation shall relieve Buyer of any of its obligations
hereunder; and provided further that between the date hereof and the Closing Date, Buyer intends to form or cause to be formed one or more Subsidiaries or Affiliates, and in connection therewith Buyer may on or prior to the Closing assign and
delegate any or all of its interest herein and duties and obligations hereunder (including to make payments, acquire assets, and assume Liabilities at the Closing) to and among such Subsidiaries and Affiliates, but no such assignment or delegation
shall relieve Buyer of any of its obligations hereunder (other than its obligation to assume an Assumed Liability relating to the operation of the Business to the extent such obligation was so assigned to a Subsidiary or Affiliate of Buyer).

 Section 13.05. Governing Law. This Agreement shall be governed by and construed in accordance with the law of the State
of New York, without regard to the conflicts of law rules of such state. 
 Section 13.06. Jurisdiction. The parties
hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated 
  

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 hereby shall be brought in the United States District Court for the Southern District of New York or any New York State
court sitting in New York City, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction
of business in the State of New York, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the
fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that
service of process on such party as provided in Section 13.01 shall be deemed effective service of process on such party. 
 Section 13.07. Counterparts; Effectiveness; No Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other party hereto. Until and unless each party has received a counterpart hereof signed by
the other party hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). Except as set forth in Section 11.02, no
provision of this Agreement is intended to confer any rights, benefits, remedies or Liabilities hereunder upon any Person other than the parties hereto and their respective successors and assigns. 
 Section 13.08. Entire Agreement. The Transaction Documents and the Confidentiality Agreement constitute the entire agreement between the
parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter hereof and thereof. 
 Section 13.09. Bulk Sales Laws. Buyer and Seller each hereby waive compliance by Seller with the provisions of the “bulk sales,”
“bulk transfer” or similar laws of any state in connection with the sale of the Purchased Assets. 
 Section 13.10.
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants
and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so 
  

 86 

 long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest extent possible. 
 Section 13.11. Specific Performance.
The parties hereto agree that irreparable damage would occur if any provision of this Agreement to be performed following the Closing were not performed in accordance with the terms thereof and that the parties shall be entitled to an injunction
or injunctions to prevent breaches of any such provision or to enforce specifically the performance of any such provision in the United States District Court for the Southern District of New York or any New York State court sitting in New York City,
in addition to any other remedy to which they are entitled at law or in equity. 
 Section 13.12. Disclosure Schedule. The
parties acknowledge and agree that (i) the inclusion of any items or information in the Disclosure Schedule that are not required by this Agreement to be so included is solely for the convenience of Buyer, (ii) the disclosure by Seller of
any matter in the Disclosure Schedule shall not be deemed to constitute an acknowledgement by Seller that the matter is required to be disclosed by the terms of this Agreement or that the matter is material, (iii) if any section of the
Disclosure Schedule lists an item or information in such a way as to make its relevance to the disclosure required by or provided in another section of the Disclosure Schedule or the statements contained in any Section of Article 3 reasonably
apparent, such information shall be deemed to have been disclosed in or with respect to such other section, notwithstanding the omission of an appropriate cross-reference to such other section or the omission of a reference in the particular
representation and warranty to such section of the Disclosure Schedule, (iv) except as provided in clause (iii) above, headings have been inserted in the Disclosure Schedule for convenience of reference only, (v) the Disclosure
Schedule is qualified in their entirety by reference to specific provisions of this Agreement and (vi) the Disclosure Schedule and the information and statements contained therein are not intended to constitute, and shall not be construed as
constituting, representations or warranties of Seller except as and to the extent provided in this Agreement. 
 [The remainder of this
page has been intentionally left blank; the next page is the signature page.] 
  

 87 

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

			
	TEXAS INSTRUMENTS INCORPORATED
		
	By:	 	 /s/ Kevin P. March

	Name:	 	Kevin P. March
	Title:	 	Senior Vice President and Chief Financial Officer
	
	S&C PURCHASE CORP.
		
	By:	 	 /s/ Edward Conard

	Name:	 	Edward Conard
	Title:	 	

 EXHIBIT A 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 ASSIGNMENT AND ASSUMPTION AGREEMENT (this
“Agreement”), dated as of [            ], 2006, between Texas Instruments Incorporated, a Delaware corporation (“Seller”), and S&C Purchase Corp., a
Delaware corporation (“Buyer”). 
 W I T N E S S E T H : 
 WHEREAS, Buyer and Seller have concurrently herewith consummated the purchase by Buyer of the Purchased Assets pursuant to the terms and conditions of
the Asset and Stock Purchase Agreement dated as of January 8, 2006 between Buyer and Seller (the “Asset and Stock Purchase Agreement”; terms defined in the Asset and Stock Purchase Agreement and not otherwise defined herein
being used herein as therein defined); and 
 WHEREAS, pursuant to the Asset and Stock Purchase Agreement, Buyer has agreed to assume certain
Liabilities of Seller and the Retained Subsidiaries with respect to the Purchased Assets and the Business; 
 NOW, THEREFORE, in
consideration of the sale of the Purchased Assets and in accordance with the terms of the Asset and Stock Purchase Agreement, Buyer and Seller agree as follows: 
 1.(a) Seller does hereby sell, transfer, assign and deliver to Buyer all of the right, title and interest of Seller and the Retained Subsidiaries in, to and under the Purchased Assets; provided that, subject to
Section 2.07 of the Asset and Stock Purchase Agreement, no sale, transfer, assignment or delivery shall be made of any or any material portion of any Purchased Asset if an attempted sale, assignment, transfer or delivery, without the consent of
a third party, would constitute a breach or other contravention thereof or in any way adversely affect the rights of Buyer, Seller or any of the Retained Subsidiaries thereunder. 
 (b) Buyer does hereby accept all the right, title and interest of Seller and the Retained Subsidiaries in, to and under all of the Purchased Assets
(except as aforesaid) and Buyer assumes and agrees to pay, perform and discharge promptly and fully when due all of the Assumed Liabilities and to perform all of the obligations of Seller and the Retained Subsidiaries to be performed under the
Purchased Assets except to the extent Liabilities thereunder constitute Excluded Liabilities. 
  

 A-1 

 2. This Agreement shall be governed by and construed in accordance with the law of the State of New York,
without regard to the conflicts of law rules of such state. 
 3. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
 [The remainder of this page
has been intentionally left blank; the next page is the signature page.] 
  

 A-2 

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

			
	TEXAS INSTRUMENTS INCORPORATED
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	S&C PURCHASE CORP.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 A-3 

 EXHIBIT D 
 FORM OF OPINION REGARDING EMPLOYEE BENEFIT PLAN QUALIFICATION (FOR BUYER AND SELLER) 
 [Date] 
 [Buyer/Seller Counsel] 
 [Address] 
 [Address] 
 Attn: 
  

	 	Re:	[Buyer/Seller Pension Plan] 

 Gentlemen: 
 Pursuant to the requirements of Section 9.02(c)(iii) of that certain Asset and Stock Purchase Agreement dated as of January 8, 2006 between
Texas Instruments Incorporated and S&C Purchase Corp., please be advised that we have acted as counsel to [Buyer/Seller] (the “Company”) in connection with the adoption of the “[Buyer/Seller Pension Plan]” (the
“Plan”) and the trust agreement that implements the provisions of the Plan (the “Trust”). We have reviewed the Plan and the Trust and such other documents as we have deemed necessary for our opinion expressed herein. Subject to
and contingent upon the occurrence of the actions required to be taken by the Company as set forth in the next paragraph, it is our opinion that the Plan and the Trust meet, in form, the qualifications under Section 401(a) of the Internal
Revenue Code of 1986, as amended (the “Code”) and, with respect to the Trust, the requirements for exemption from taxation pursuant to Section 501(a) of the Code. 
 The Company has represented to us that it will promptly (and in any event prior to the expiration of the applicable remedial amendment period) file the
Plan with the Internal Revenue Service (the “IRS”) for purposes of receiving a determination letter with respect to the qualified status of the Plan and the Trust under Sections 401(a) and 501(a) of the Code. The Company has further
represented to us that it will timely make all changes requested by the IRS as a condition to the issuance of a determination letter. 
  

	
	Sincerely,
	
	[Buyer/Seller Counsel]

  

 D-1 

 EXHIBIT E 
 FORM OF CERTIFICATION REGARDING VEBA (FOR BUYER AND SELLER) 
 [Insert Date] 
 [Buyer/Seller] 
 [Address] 
 [Address] 
 Attn: 
  

	 	Re:	[Buyer/Seller VEBA] 

 Gentlemen: 
 Pursuant to the requirements of Section 9.02(l) of that certain Asset and Stock Purchase Agreement dated as of January7, 2006 between Texas
Instruments Incorporated and S&C Purchase Corp., we hereby certify to [Buyer/Seller] that the voluntary employees’ beneficiary association adopted by us to provide for the payment of life, sick, accident or other benefits to the members of
such association or their dependents or designated beneficiaries within the meaning of Section 501(c)(9) of the Internal Revenue Code of 1986, as amended (the “Code”) (“VEBA”) meets, in form, the requirements of such section
of the Code, including the requirement that no part of the net earnings of such VEBA inures (other than through such payments) to the benefit of any private shareholder or individual. Therefore, Section 501(a) of the Code provides that the VEBA
is exempt from taxation under Subtitle A of the Code. 
 This certification shall, in all respects, be subject to and contingent upon the
receipt by us of a favorable determination letter from the Internal Revenue Service recognizing the exemption of the VEBA under Section 501(a) of the Code. In that regard, we will timely make all changes reasonably requested by the IRS as a
condition to the issuance of a favorable determination letter. 
  

	
	Sincerely,
	
	[Buyer/Seller]

  

 E-1

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