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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;13. Commitments and Contingent Liabilities&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;We are involved in a number of claims and lawsuits considered normal in our business, including
   product liability matters. While it is not possible to predict the outcome of legal actions, we
   believe that any liability resulting from the pending claims and suits that would potentially
   exceed existing accruals would not have a material, adverse effect on our financial position or on
   our results of operations or cash flows for any period.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;i&gt;Product Liability&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;On October&amp;#160;20, 2008, the U.S. Food and Drug Administration (FDA)&amp;#160;issued a public health notice
   regarding complications associated with transvaginal placement of surgical mesh to treat pelvic
   organ prolapse and stress urinary incontinence. Most of our female incontinence and prolapse
   products use surgical mesh. The notification provides recommendations and encourages physicians to
   seek specialized training in mesh procedures, advise their patients about the risks associated with
   these procedures and be diligent in diagnosing and reporting complications.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;During 2010, we experienced an increased level of lawsuits related to our products that use mesh.
   We believe these suits were brought in connection with the two year anniversary of the public
   health notification issued by the FDA and we plan to vigorously defend against these claims. We
   have recorded an accrual for probable legal costs, settlements and judgments for mesh litigation.
   Due to the early stages of the litigation and the lack of precedent for product liability cases
   involving mesh, we do not have sufficient data to quantify the maximum potential range to litigate
   or otherwise resolve these lawsuits, either individually or in the aggregate.
   &lt;/div&gt;
   &lt;/div&gt;
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