Document:

Exhibit 10.6

 

EXECUTION VERSION

 

 

JPMorgan Chase Bank, National Association

London Branch
 25 Bank Street
 Canary Wharf
 London E14 5JP
 England

 

                                                                                                March 14, 2018

 

To:                                                                             Supernus Pharmaceuticals, Inc.

1550 East Gude Drive

Rockville, Maryland 20850

Attn: Gregory S. Patrick

Telephone: 301-838-2522

 

From:                                                               JPMorgan Chase Bank, National Association, London Branch

 

Re:                                                                             Base Issuer Warrant Transaction

 

Ladies and Gentlemen:

 

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

 

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

 

This Confirmation evidences a complete and binding agreement between Dealer and Issuer as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement as if Dealer and Issuer had executed an agreement in such form (without any Schedule but with the elections set forth in this Confirmation and the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Issuer with a “Threshold Amount” of USD 35 million and to Dealer with a “Threshold Amount” equal to 3% of the shareholders’ equity of JPMorgan Chase & Co. as of the Trade Date; provided that (i) the words “, or becoming capable at such time of being declared,” shall be deleted from such Section 5(a)(vi), (ii) the following language shall be added to the end of such Section 5(a)(vi): “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (1) the default was caused solely by error or omission of an administrative or operational nature; (2) funds were available to enable the party to make the payment when due; and (3) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.” and (iii) the term “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement, except that such term shall not include obligations in respect of deposits received in the ordinary course of a party’s banking business).  For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

 

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

 

 

Definitions or the Agreement, this Confirmation shall govern.  For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of this Confirmation, the Agreement or the Equity Definitions shall not be construed to exclude or limit the application of any other provision of this Confirmation, the Agreement or the Equity Definitions.

 

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

 

	
General Terms:
    	
 
    
	
 
    	
 
    
	
Trade Date:
    	
March 14,   2018
    
	
 
    	
 
    
	
Effective Date:
    	
March 19, 2018, or   such other date as agreed between the parties, subject to   Section 8(n) below.
    
	
 
    	
 
    
	
Components:
    	
The Transaction will be   divided into individual Components, each with the terms set forth in this   Confirmation, and, in particular, with the Number of Warrants and Expiration   Date set forth in this Confirmation. The payments and deliveries to be made   upon settlement of the Transaction will be determined separately for each   Component as if each Component were a separate Transaction under the   Agreement.
    
	
 
    	
 
    
	
Warrant Style:
    	
European
    
	
 
    	
 
    
	
Warrant Type:
    	
Call
    
	
 
    	
 
    
	
Seller:
    	
Issuer
    
	
 
    	
 
    
	
Buyer:
    	
Dealer
    
	
 
    	
 
    
	
Shares:
    	
The common stock of   Issuer, par value USD 0.001 per share (Ticker Symbol: “SUPN”).
    
	
 
    	
 
    
	
Number of Warrants:
    	
For each Component, as   provided in Annex A to this Confirmation.
    
	
 
    	
 
    
	
Warrant Entitlement:
    	
One Share per Warrant
    
	
 
    	
 
    
	
Strike Price:
    	
As provided in Annex   A to this Confirmation.   Notwithstanding anything to the contrary in the Agreement, this Confirmation   or the Equity Definitions, in no event shall the Strike Price be subject to   adjustment to the extent that, after giving effect to such adjustment, the   Strike Price would be less than USD 43.15, except for any adjustment pursuant   to the terms of this Confirmation and the Equity Definitions in connection   with stock splits or similar changes to Issuer’s capitalization.
    
	
 
    	
 
    
	
Premium:
    	
As provided in Annex   A to this Confirmation.
    
	
 
    	
 
    
	
Premium Payment Date:
    	
The Effective Date
    
	
 
    	
 
    
	
Exchange:
    	
The NASDAQ Global   Market
    
	
 
    	
 
    
	
Related Exchange:
    	
All Exchanges
    
	
 
    	
 
    
	
Procedures for   Exercise:
    	
 
    
	
 
    	
 
    
	
In respect of any Component:
    	
 
    
	
 
    	
 
    
	
Expiration Time:
    	
Valuation Time
    

 

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Expiration Date:
    	
As provided in Annex   A to this Confirmation (or, if such date is not a Scheduled Trading Day,   the next following Scheduled Trading Day that is not already an Expiration   Date for another Component); provided   that if that date is a Disrupted Day, the Expiration Date for such Component   shall be the first succeeding Scheduled Trading Day that is not a Disrupted   Day and is not or is not already deemed to be an Expiration Date in respect   of any other Component of the Transaction hereunder; and provided further that if the Expiration   Date has not occurred pursuant to the preceding proviso as of the Final   Disruption Date, the Final Disruption Date shall be the Expiration Date   (irrespective of whether such date is an Expiration Date in respect of any   other Component for the Transaction), and, notwithstanding anything to the   contrary in this Confirmation or the Definitions, the VWAP Price for such   Expiration Date shall be the prevailing market value per Share determined by   the Calculation Agent in a commercially reasonable manner using, if practicable,   a volume-weighted method. “Final Disruption Date” has the meaning provided in Annex A to this Confirmation.   Notwithstanding the foregoing and anything to the contrary in the Equity   Definitions, if a Market Disruption Event occurs on any Expiration Date, the   Calculation Agent may, except in the case of a Regulatory Disruption   occurring solely under clause (y) of the definition thereof solely with   respect to voluntarily adopted policies and procedures, determine that such   Expiration Date is a Disrupted Day only in part, in which case (i) the   Calculation Agent shall make adjustments to the Number of Warrants for the   relevant Component for which such day shall be the Expiration Date and shall   designate the Scheduled Trading Day determined in the manner described in the   second preceding sentence as the Expiration Date for the remaining Warrants   for such Component, and (ii) the VWAP Price for such Disrupted   Day shall be determined by the Calculation Agent, using if practicable a   volume-weighted method, based on transactions in the Shares on such Disrupted   Day taking into account the nature and duration of such Market Disruption   Event on such day. Any Scheduled   Trading Day on which, as of the date hereof, the Exchange is scheduled to   close prior to its normal close of trading shall be deemed not to be a   Scheduled Trading Day; if a closure of the Exchange prior to its normal close   of trading on any Scheduled Trading Day is scheduled following the date   hereof, but prior to the open of the regular trading session of the Exchange   on such day, then such Scheduled Trading Day shall be deemed to be a   Disrupted Day in full. Section 6.6 of the Equity Definitions shall not   apply to any Valuation Date occurring in respect of an Expiration Date.
    
	
 
    	
 
    
	
Market Disruption Event:
    	
Section 6.3(a) of   the Equity Definitions is hereby amended (A) by deleting the words   “during the one hour period that ends at the relevant Valuation Time, Latest   Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case   may be,” in clause (ii) thereof and (B) by replacing the words “or   (iii) an Early Closure.” therein with “(iii) an Early Closure, or   (iv) a Regulatory Disruption.”
    

 

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Section 6.3(d) of   the Equity Definitions is hereby amended by deleting the remainder of the   provision following the term “Scheduled Closing Time” in the fourth line   thereof.
    
	
 
    	
 
    
	
Regulatory Disruption:
    	
Any event that Dealer,   in its reasonable discretion, determines, based on the advice of counsel,   makes it appropriate with regard to (x) any legal, regulatory or   self-regulatory requirements or (y) related policies and procedures   (whether or not such requirements, policies or procedures are imposed by law   or have been voluntarily adopted by Dealer), provided that such policies and   procedures have been adopted by Dealer in good faith and are generally   applicable in similar situations and applied in a non-discriminatory manner,   in either case, for Dealer to refrain from or decrease any market activity in   connection with maintaining, establishing or unwinding a commercially   reasonable Hedge Position in connection with the Transaction. If Dealer   determines in good faith that a Market Disruption Event has occurred on any   Scheduled Trading Day solely pursuant to clause (y) above and solely   with respect to voluntarily adopted policies and procedures, such Scheduled   Trading Day will be a Disrupted Day in full. Dealer shall notify Issuer as   soon as reasonably practicable that a Regulatory Disruption has occurred and   the Expiration Dates affected by it.
    
	
 
    	
 
    
	
Automatic Exercise:
    	
Applicable; and means   that the Number of Warrants for each Component will be deemed to be   automatically exercised at the   Expiration Time on the Expiration Date for such Component unless Dealer   notifies Seller (by telephone or in writing) prior to the Expiration Time on   the Expiration Date that it does not wish Automatic Exercise to occur, in   which case Automatic Exercise will not apply.
    
	
 
    	
 
    
	
Settlement Terms:
    	
 
    
	
 
    	
 
    
	
In respect of any Component:
    	
 
    
	
 
    	
 
    
	
Settlement Currency:
    	
USD
    
	
 
    	
 
    
	
Settlement Method Election:
    	
Applicable; provided that:
    
	
 
    	
 
    
	
 
    	
(i) Issuer may elect Cash Settlement only if, on or prior to the   Settlement Method Election Date, Issuer delivers written notice to   Dealer stating that Issuer has elected that Cash Settlement apply with   respect to every Component of the Transaction, and Dealer does not deliver   written notice in accordance with the last paragraph below in this   “Settlement Method Election” provision;
    
	
 
    	
 
    
	
 
    	
(ii) on such notice delivery date, Issuer shall represent and   warrant to Dealer in writing that, as of such notice delivery date:
    
	
 
    	
 
    
	
 
    	
(A) Issuer is not aware of any material nonpublic information   regarding Issuer or the Shares;
    
	
 
    	
 
    
	
 
    	
(B) Issuer is electing Cash Settlement in good faith and not as   part of a plan or scheme to evade compliance with the federal securities   laws;
    
	
 
    	
 
    
	
 
    	
(C) the assets of Issuer at their fair valuation exceed the   liabilities of Issuer, including contingent liabilities;
    

 

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(D) the capital of Issuer is adequate to conduct the business of   Issuer;
    
	
 
    	
 
    
	
 
    	
(E) Issuer has the ability to pay its debts and obligations as   such debts mature and does not intend to, or does not believe that it will,   incur debt beyond its ability to pay as such debts mature;
    
	
 
    	
 
    
	
 
    	
(F) Issuer would be able to purchase the Number of Shares in   compliance with the laws of Issuer’s jurisdiction or organization;
    
	
 
    	
 
    
	
 
    	
(G) Issuer has the power to make such election and to execute and   deliver any documentation relating to such election that it is required by   this Confirmation to deliver and to perform its obligations under this   Confirmation and has taken all necessary action to authorize such election,   execution, delivery and performance;
    
	
 
    	
 
    
	
 
    	
(H) such election and performance of its obligations under this   Confirmation do not violate or conflict with any law applicable to it, any   provision of its constitutional documents, any order or judgment of any court   or other agency of government applicable to it or any of its assets or any   contractual restriction binding on or affecting it or any of its assets; and
    
	
 
    	
 
    
	
 
    	
(I) it acknowledges and agrees that any transaction that Dealer   makes with respect to the Shares during the period beginning at the time that   Issuer delivers notice of its Cash Settlement election and ending at the   close of business on the final day of the Settlement Period shall be made by   Dealer at Dealer’s sole discretion for Dealer’s own account and Issuer shall   not have, and shall not attempt to exercise, any influence over how, when,   whether or at what price Dealer effects such transactions, including, without   limitation, the prices paid or received by Dealer per Share pursuant to such transactions,   or whether such transactions are made on any securities exchange or   privately.
    
	
 
    	
 
    
	
 
    	
(iii) such Settlement Method Election shall apply to every   Component; and
    
	
 
    	
 
    
	
 
    	
(iv) no event of default has occurred and is continuing under any   indebtedness of the Issuer or its subsidiaries in an aggregate principal   amount of USD 35 million or more.
    
	
 
    	
 
    
	
 
    	
At any time prior to making a Settlement Method Election, Issuer   may, without the consent of Dealer, amend this Confirmation by notice to   Dealer to eliminate Issuer’s right to elect Cash Settlement.
    
	
 
    	
 
    
	
 
    	
Dealer may refuse to grant its consent with respect to Issuer’s Cash   Settlement election if (A) in the reasonable judgment of Dealer, the   election of Cash Settlement or any purchases of Shares that Dealer (or its   affiliates) might make in connection therewith, based upon the advice of   counsel and as a result of events occurring after the
    

 

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Trade Date, would raise material risks under applicable securities laws   and (B) Dealer notifies its refusal to Issuer in writing within two   Scheduled Trading Days following receipt of the election notice from Issuer.
    
	
 
    	
 
    
	
Electing Party:
    	
Issuer
    
	
 
    	
 
    
	
Settlement Method Election Date:
    	
The tenth (10th) Scheduled Trading Day immediately preceding the   scheduled Expiration Date for the Component with the earliest scheduled   Expiration Date.
    
	
 
    	
 
    
	
Default Settlement Method:
    	
Net Share Settlement
    
	
 
    	
 
    
	
Net Share Settlement:
    	
If applicable, on each   Settlement Date, Issuer shall deliver to Dealer a number of Shares equal   to the Number of Shares to be Delivered for such Settlement Date to the   account specified by Dealer and cash in lieu of any fractional shares valued   at the VWAP Price on the Valuation Date corresponding to such Settlement   Date.
    
	
 
    	
 
    
	
Number of Shares to be   Delivered:
    	
In respect of any   Exercise Date, the product of (i) the number of Warrants exercised or   deemed exercised on such Exercise Date, (ii) the Warrant Entitlement and   (iii) (A) the excess, if any, of the VWAP Price on the Valuation   Date occurring in respect of such Exercise Date over the Strike Price divided by (B) such VWAP Price.
    
	
 
    	
 
    
	
 
    	
The Number of Shares to   be Delivered shall be delivered by Issuer to Dealer no later than noon (local   time in New York City) on the relevant Settlement Date.
    
	
 
    	
 
    
	
VWAP Price:
    	
For any Valuation Date,   the Rule 10b-18 dollar volume weighted average price per Share for such   Valuation Date based on transactions executed during such Valuation Date, as   reported on Bloomberg Page “SUPN <Equity> AQR SEC” (or any   successor thereto) or, in the event such price is not so reported on such   Valuation Date for any reason or is manifestly incorrect, as reasonably   determined by the Calculation Agent using a volume weighted method.
    
	
 
    	
 
    
	
Other Applicable   Provisions:
    	
The provisions of   Sections 1.27, 9.1(c), 9.8, 9.9, 9.11 (except that the Representation and   Agreement contained in Section 9.11 of the Equity Definitions shall be   modified by excluding any representations therein relating to restrictions,   obligations, limitations or requirements under applicable securities laws   arising as a result of the fact that Seller is the Issuer of the Shares),   9.12 and 10.5 of the Equity Definitions will be applicable as if “Physical   Settlement” applied to the Transaction.
    
	
 
    	
 
    
	
Option Cash Settlement Amount:
    	
For any Exercise Date, the product of (i) the number of Warrants   exercised or deemed exercised on such Exercise Date, (ii) the Warrant   Entitlement and (iii) the excess of the VWAP Price on the Valuation Date   occurring in respect of such Exercise Date over the Strike Price (or, if   there is no such excess, zero).
    
	
 
    	
 
    
	
Adjustments:
    	
 
    
	
 
    	
 
    
	
In respect of any Component:
    	
 
    
	
 
    	
 
    
	
Method of Adjustment:
    	
Calculation Agent Adjustment
    

 

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Extraordinary Dividend:
    	
Any Dividend that has   an ex-dividend date occurring on or after the Trade Date and on or prior to   the date on which Issuer satisfies all of its delivery obligations hereunder.
    
	
 
    	
 
    
	
Dividend:
    	
Any dividend or   distribution on the Shares (other than any dividend or distribution of the   type described in Sections 11.2(e)(i), 11.2(e)(ii)(A) or   11.2(e)(ii)(B) of the Equity Definitions).
    
	
 
    	
 
    
	
Extraordinary Events:
    	
 
    
	
 
    	
 
    
	
Merger Event:
    	
Applicable; provided   that if an event occurs that constitutes both a Merger Event under   Section 12.1(b) of the Equity Definitions and an Additional   Termination Event under Section 8(l)(iii) of this Confirmation, the   provisions of Section 8(l) of this Confirmation shall apply
    
	
 
    	
 
    
	
Consequences of Merger   Events:
    	
 
    
	
 
    	
 
    
	
(a)    Share-for-Share: 
    	
Modified Calculation Agent Adjustment
    
	
 
    	
 
    
	
(b)    Share-for-Other: 
    	
Cancellation and Payment (Calculation Agent   Determination)
    
	
 
    	
 
    
	
(c)    Share-for-Combined: 
    	
Modified Calculation Agent Adjustment; provided that Dealer may elect Cancellation and Payment   (Calculation Agent Determination) for any portion of the Transaction in its   commercially reasonable discretion.
    
	
 
    	
 
    
	
Tender Offer:
    	
Applicable; provided that the definition of “Tender   Offer” in Section 12.1(d) of the Equity Definitions shall be   amended by replacing ‘10%” in the third line thereof with “20%”; and   provided, further, that if an event occurs that constitutes both a Tender   Offer under Section 12.1(d) of the Equity Definitions and an   Additional Termination Event under Section 8(l)(ii) of this   Confirmation, the provisions of Section 8(l) of this Confirmation   shall apply.
    
	
 
    	
 
    
	
Consequences of Tender   Offers:
    	
 
    
	
 
    	
 
    
	
(a)    Share-for-Share: 
    	
Modified Calculation Agent Adjustment
    
	
 
    	
 
    
	
(b)    Share-for-Other: 
    	
Modified Calculation Agent Adjustment
    
	
 
    	
 
    
	
(c)    Share-for-Combined: 
    	
Modified Calculation Agent Adjustment; provided that Dealer may elect Cancellation and Payment   (Calculation Agent Determination) for any portion of the Transaction in its   commercially reasonable discretion.
    
	
 
    	
 
    
	
Composition of Combined   Consideration:
    	
Not Applicable; provided that,   notwithstanding Sections 12.1(f) and 12.5(b) of the Equity   Definitions, to the extent that the composition of the consideration for the   relevant Shares pursuant to a Tender Offer or Merger Event could be elected   by a holder of the Shares, the Calculation Agent will determine such   composition.
    
	
 
    	
 
    
	
Modified Calculation Agent   Adjustment:
    	
If, in respect of any Merger Event to which Modified   Calculation Agent Adjustment applies, the adjustments to be made in   accordance with Section 12.2(e)(i) of the Equity Definitions would result   in Issuer being different from the issuer of the Shares, then with respect to   such Merger Event, as a condition precedent to the adjustments contemplated   in Section 12.2(e)(i) of the Equity Definitions, Dealer, the Issuer   of the Affected Shares and the entity
    

 

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that will be the Issuer of the New Shares shall,   prior to the Merger Date, shall have entered into such documentation   containing representations, warranties and agreements relating to securities   law and other issues as requested by Dealer that Dealer has determined, in   its good-faith and reasonable discretion, to be reasonably necessary or   appropriate to allow Dealer to continue as a party to the Transaction, as   adjusted under Section 12.2(e)(i) of the Equity Definitions, and to   preserve its commercially reasonable hedging or hedge unwind activities in   connection with the Transaction in a manner compliant with applicable legal,   regulatory or self-regulatory requirements, or with related policies and   procedures applicable to Dealer (whether or not such requirements, policies   or procedures are imposed by law or have been voluntarily adopted by Dealer),   provided that such policies and procedures have been adopted by Dealer in good   faith and are generally applicable in similar situations and applied in a   non-discriminatory manner, and if such conditions are not met or if the   Calculation Agent determines that no adjustment that it could make under   Section 12.2(e)(i) of the Equity Definitions will produce a   commercially reasonable result, then the consequences set forth in   Section 12.2(e)(ii) of the Equity Definitions shall apply. For the   avoidance of doubt, such adjustments will be made taking into account the   requirements under “Calculation Agent” below.
    
	
 
    	
 
    
	
Consequences of Announcement Events:
    	
With respect to any Component, if an Announcement   Event occurs, the Calculation Agent will determine the economic effect of   such Announcement Event on the theoretical value of such Component (i) on   or a commercially reasonable period of time after the relevant Announcement   Event and (ii) on the earliest to occur of the date on which the   transaction described in such Announcement Event (as amended or modified) is   consummated or otherwise results in a Merger Date or a Tender Offer Date, as   applicable, or the Valuation Date or any earlier date of termination or   cancellation for such Component (in the case of clause (i) and (ii),   taking into account such variables as the Calculation Agent may commercially   reasonably determine, including, without limitation, any actual or expected   change in volatility, dividends, correlation, stock loan rate or liquidity   relevant to the Shares or to such Component whether within a commercially   reasonable period of time prior to or after the Announcement Event or for any   commercially reasonable period of time such changes are in effect including,   without limitation, if applicable, the period from the Announcement Event to   the date of the relevant adjustment), and if, in the case of clause   (i) or (ii), the Calculation Agent determines that such economic effect   is material and that making the relevant adjustment would be commercially   reasonable, the Calculation Agent will (x) adjust the terms of such   Component to reflect such economic effect (but, for the avoidance of doubt,   taking into account, and without duplication of, any other adjustment made   pursuant to this “Consequences of Announcement Events” provision or pursuant   to the provisions opposite the captions “Method of Adjustment”, “Consequences   of Merger Events” or “Consequences of Tender Offers” above in respect of the   transaction or intention giving rise to such Announcement Event
    

 

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and taking into account Dealer’s commercially   reasonable Hedge Positions) and (y) determine the effective date of such   adjustment.
    
	
 
    	
 
    
	
Announcement Event:
    	
(i) The public announcement by Issuer or any of   its affiliates or by a party to the relevant proposed transaction or any of   its affiliates of (x) any transaction or event that, if completed, would   constitute a Merger Event or Tender Offer or (y) the intention to enter   into a Merger Event or Tender Offer, provided that, in the case of a public   announcement under clauses (x) or (y) above by any entity other   than the Issuer or its affiliates, such public announcement will constitute   an Announcement Event if, in the commercially reasonable judgment of the   Calculation Agent, such announcement is likely to lead to a Merger Event or   Tender Offer (it being understood that the Calculation Agent may make such   determination by reference to the impact of such announcement on the market   for the Shares or options relating to the Shares and such other factors as the   Calculation Agent deems relevant in its commercially reasonable judgment),   (ii) the public announcement by Issuer of an intention to solicit or   enter into, or to explore strategic alternatives or other similar undertaking   that may include, a Merger Event or Tender Offer or (iii) any subsequent   public announcement by any such entity of a withdrawal, discontinuation,   termination or other change to a transaction or intention that is the subject   of an announcement of the type described in clause (i) or (ii) of   this sentence, as determined, in each case, by the Calculation Agent. For   purposes of this definition of “Announcement Event,” the remainder of the   definition of “Merger Event” in Section 12.1(b) of the Equity   Definitions following the definition of “Reverse Merger” therein shall be   disregarded. For the avoidance of doubt, the occurrence of an Announcement   Event with respect to any transaction or intention shall not preclude the   occurrence of a later Announcement Event with respect to such transaction or   intention.
    
	
 
    	
 
    
	
New Shares:
    	
In the definition of New Shares in   Section 12.1(i) of the Equity Definitions, (a) the text in   clause (i) thereof shall be deleted in its entirety (including the word   “and” following such clause (i)) and replaced with “publicly quoted, traded   or listed on any of the New York Stock Exchange, The NASDAQ Global Select   Market or The NASDAQ Global Market (or their respective successors),” and   (b) the phrase “and (iii) issued by a corporation organized under   the laws of the United States, any State thereof or the District of Columbia”   shall be inserted immediately prior to the period.
    
	
 
    	
 
    
	
Nationalization, Insolvency or Delisting:
    	
Cancellation and Payment (Calculation Agent   Determination); provided that,   in addition to the provisions of Section 12.6(a)(iii) of the Equity   Definitions, it shall also constitute a Delisting if the Exchange is located   in the United States and the Shares are not immediately re-listed, re-traded   or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select   Market or The NASDAQ Global Market (or their respective successors); if the   Shares are immediately re-listed, re-traded or re-quoted on any such exchange   or quotation system, such exchange or quotation system shall thereafter be   deemed to be the Exchange.
    

 

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Additional Disruption Events:
    	
 
    
	
 
    	
 
    
	
(a)  Change in   Law: 
    	
Applicable; provided that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended by   (x) adding the words “(including, for the avoidance of doubt and without   limitation, adoption or promulgation of new regulations authorized or   mandated by existing statute)” after the word “regulation” in the second line   thereof, (y) adding the words “or any Hedge Positions” after the word   “Shares” in the clause (X) thereof and (z) adding the words “, or   holding, acquiring or disposing of Shares or any Hedge Positions relating   to,” after the words “obligations under” in clause (Y) thereof.
    
	
 
    	
 
    
	
(b)  Failure   to Deliver: 
    	
Applicable
    
	
 
    	
 
    
	
(c)  Insolvency   Filing: 
    	
Applicable
    
	
 
    	
 
    
	
(d)  Hedging   Disruption: 
    	
Applicable; provided that:
    
	
 
    	
 
    
	
 
    	
(i)    Section 12.9(a)(v) of the Equity Definitions is hereby amended by   (a) inserting the following words at the end of clause (A) thereof:   “in the manner contemplated by the Hedging Party on the Trade Date” and   (b) inserting the following two phrases at the end of such Section:
    
	
 
    	
 
    
	
 
    	
“For the avoidance of doubt,   the term “equity price risk” shall be deemed to include, but shall not be   limited to, stock price and volatility risk. And, for the further avoidance   of doubt, any such transactions or assets referred to in phrases (A) or   (B) above must be available on commercially reasonable pricing terms”;   and
    
	
 
    	
 
    
	
 
    	
(ii) Section 12.9(b)(iii) of   the Equity Definitions is hereby amended by inserting in the third line   thereof, after the words “to terminate the Transaction”, the words “or a   portion of the Transaction affected by such Hedging Disruption”.
    
	
 
    	
 
    
	
(e)  Increased   Cost of Hedging: 
    	
Applicable
    
	
 
    	
 
    
	
(f)  Loss of   Stock Borrow: 
    	
Applicable
    
	
 
    	
 
    
	
Maximum Stock Loan Rate:
    	
As provided in Annex A to this Confirmation.
    
	
 
    	
 
    
	
(g)  Increased   Cost of Stock Borrow: 
    	
Applicable
    
	
 
    	
 
    
	
Initial Stock Loan Rate:
    	
As provided in Annex A to this Confirmation.
    
	
 
    	
 
    
	
Hedging Party:
    	
Dealer for all applicable Potential Adjustment   Events and Extraordinary Events
    
	
 
    	
 
    
	
Determining Party:
    	
Dealer for all applicable Extraordinary Events
    
	
 
    	
 
    
	
Non-Reliance:
    	
Applicable
    
	
 
    	
 
    
	
Agreements and Acknowledgments Regarding Hedging   Activities:
    	
Applicable
    
	
 
    	
 
    
	
Additional Acknowledgments:
    	
Applicable
    

 

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3.  Calculation Agent:                          Dealer; provided that, notwithstanding anything to the contrary, all determinations, adjustments and calculations performed by Dealer in its capacity as Calculation Agent, as well as any determinations, adjustments or calculations by Dealer in any other capacity, pursuant to this Confirmation, the Agreement and the Equity Definitions shall be made in good faith and in a commercially reasonable manner based on commercially reasonable inputs.  In the event the Calculation Agent or Dealer makes any calculation, adjustment or determination pursuant to this Confirmation, the Agreement or the Equity Definitions, the Calculation Agent or Dealer shall, upon written request from Issuer, commercially reasonably promptly provide an explanation in reasonable detail of the basis for any such determination, adjustment or calculation (including any quotations, market data or information from external sources used in making such calculation, adjustment or determination, as the case may be, but without disclosing Calculation Agent’s or Dealer’s proprietary models or other information that is subject to contractual, legal or regulatory obligations to not disclose such information); provided that following the occurrence of an event described under Section 5(a)(vii) of the Agreement with respect to which Dealer is the Defaulting Party, if the Calculation Agent fails to timely make any calculation, adjustment or determination required to be made by the Calculation Agent hereunder or to perform any obligation of the Calculation Agent hereunder and such failure continues for five (5) Exchange Business Days following notice to the Calculation Agent by Issuer of such failure, Issuer shall have the right to designate an independent, nationally recognized third-party dealer in the over-the-counter corporate equity derivatives to act as the Calculation Agent over the period during which such Event of Default has occurred and is continuing, and the parties hereto shall work in good faith to execute any appropriate documentation required by such replacement Calculation Agent.  For the avoidance of doubt, to the extent of any such adjustments or amendments to the terms of this Confirmation or the Transaction, the Confirmation and Transaction shall retain (i) contingencies to exercise that are not an observable market, other than the market for the Issuer’s stock (or the Share Termination Delivery Units, as applicable) or an observable index, other than an index calculated or measured solely by reference to the Issuer’s own operations (or the issuer of the Share Termination Delivery Units’ own operations, as applicable), (ii) the commercially reasonable nature of adjustments permitted to the Transaction (such as to consider changes in volatility, expected dividends, stock price, strike price, stock loan rate or liquidity relevant to the Shares (or the Share Termination Delivery Units, as applicable), other commercially reasonable option pricing inputs and the ability to maintain a commercially reasonable hedge position relating to the underlying shares) and (iii) settlement in Shares (or the Share Termination Delivery Units, as applicable) as the default settlement method (subject to Issuer’s ability to elect otherwise subject to certain conditions) or as a settlement method that may be elected subject to certain conditions, as applicable, pursuant to “Settlement Terms” above and Section 8(a) below.

 

	
4.  Account   Details:
    
	
 
    
	
Dealer Payment   Instructions:
    	
Bank:
    	
JPMorgan Chase Bank,   N.A.
    
	
 
    	
ABA#:
    	
021000021
    
	
 
    	
Acct No.:
    	
099997979
    
	
 
    	
Beneficiary:
    	
JPMorgan Chase Bank,   N.A. New York
    
	
 
    	
Ref:
    	
Derivatives
    
	
 
    	
 
    	
 
    
	
Issuer Payment   Instructions:
    	
To be provided by Issuer.
    
	
 
    
	
5.  Offices:
    
	
 
    
	
The Office of Dealer   for the Transaction is: London
    
	
 
    
	
JPMorgan Chase   Bank, National Association
    
	
London Branch
    
	
25 Bank Street
    
	
Canary Wharf
    
	
London E14 5JP
    
	
England
    
	
 
    
	
The Office of   Issuer for the Transaction is: Not applicable
    
	
 
    
	
6.  Notices:   For purposes of this Confirmation:
    
	
 
    
	
Address for   notices or communications to Issuer:
    
				

 

11

 

	
To:
    	
Supernus Pharmaceuticals, Inc.
    
	
 
    	
1550 East Gude Drive
    
	
 
    	
Rockville, Maryland   20850
    
	
Attn:
    	
Gregory S. Patrick
    
	
Telephone:
    	
301-838-2522
    
	
Facsimile:
    	
gpatrick@supernus.com
    
	
 
    	
 
    
	
Address for   notices or communications to Dealer:
    
	
 
    
	
JPMorgan Chase Bank,   National Association
    
	
EDG Marketing Support
    
	
Email:
    	
edg_notices@jpmorgan.com
    
	
 
    	
edg.us.flow.corporates.mo@jpmorgan.com
    
	
Facsimile No:
    	
1-866-886-4506
    

 

7.  Representations, Warranties and Agreements:

 

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

 

(i)                                     On the Trade Date and any date on which Issuer makes an election hereunder, (A) Issuer is not aware of any material nonpublic information regarding Issuer or the Shares and (B) Issuer’s most recent Annual Report on Form 10-K, taken together with all reports and other documents subsequently filed by Issuer with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.

 

(ii)                                  Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer acknowledges that Dealer is not making any representations or warranties or taking any position or expressing any view with respect to the treatment of the Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity (or any successor issue statements) or under FASB’s Liabilities & Equity Project.

 

(iii)                               On or prior to the Trade Date, Issuer shall deliver to Dealer a resolution of Issuer’s board of directors or a duly authorized committee thereof authorizing the Transaction.

 

(iv)                              Issuer is not entering into this Confirmation nor making any election hereunder to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

 

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

 

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

 

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

 

(viii)                        [RESERVED].

 

(ix)                              Issuer understands no obligations of Dealer to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any Affiliate of Dealer or any governmental agency.

 

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(x)                                 During the period starting on the first Expiration Date and ending on the last Expiration Date (the “Settlement Period”), the Shares and any securities that are convertible into, or exchangeable or exercisable for, Shares will not be subject to a “restricted period,” as such term is defined in Regulation M under the Exchange Act.

 

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

 

(xii)                           On the Trade Date and at all times until termination or earlier expiration of the Transaction, (A) a number of Shares equal to the Capped Number have been reserved for issuance by all required corporate action of Issuer, (B) the Shares issuable upon exercise of the Warrants (the “Warrant Shares”) have been duly authorized and, when delivered against payment therefor (which may include Net Share Settlement in lieu of cash) and otherwise as contemplated by the terms of the Warrant following the exercise of the Warrant in accordance with the terms and conditions of the Warrant, will be validly issued, fully-paid and non-assessable and (C) the issuance of the Warrant Shares will not be subject to any preemptive or similar rights and shall upon issuance be accepted for listing or quotation on the Exchange.

 

(xiii)                        To Issuer’s knowledge, other than general provisions of the Delaware General Corporation Law, no state or local (including non-U.S. jurisdictions) or non-U.S. federal law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares.

 

(b)                                 Each of Dealer and Issuer agrees and represents that it is an “eligible contract participant” as defined in Section 1a(18) of the U.S. Commodity Exchange Act, as amended.

 

(c)                                  Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof.  Accordingly, Dealer represents and warrants to Issuer that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own account and without a view to the distribution or resale thereof and (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws.

 

(d)                                 Issuer agrees and acknowledges that Dealer is a “financial institution” and “financial participant” within the meaning of Sections 101(22) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”).  The parties hereto further agree and acknowledge that it is the intent of the parties that (A) this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment,” within the meaning of Section 546 of the Bankruptcy Code and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code and a “termination value, payment amount, or other transfer obligation” within the meaning of Sections 362 and 546 of the Bankruptcy Code, and (B) Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 548(d)(2), 555 and 561 of the Bankruptcy Code.

 

(e)                                  Issuer shall deliver to Dealer an opinion of counsel, dated as of the Effective Date and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement, Section 7(a)(v) and Section 7(a)(xii) of this Confirmation (replacing, solely for these purposes, the words “On the Trade Date and at all times until termination or earlier expiration of the Transaction” with the words “On the Effective Date”).

 

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8.  Other Provisions:

 

(a)                                 Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.  If Issuer shall owe Dealer any amount pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions or pursuant to Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Issuer shall have the right, in its sole discretion, to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M. New York City time on the Merger Date, Tender Offer Date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of another Extraordinary Event, as applicable (“Notice of Share Termination”); provided that if Issuer does not elect to satisfy its Payment Obligation by the Share Termination Alternative, Dealer shall have the right, in its sole discretion, to elect to require Issuer to satisfy its Payment Obligation by the Share Termination Alternative, notwithstanding Issuer’s failure to elect or election to the contrary; and provided further that Issuer shall not have the right to so elect (but, for the avoidance of doubt, Dealer shall have the right to so elect) in the event (i) of an Insolvency, a Nationalization, a Tender Offer or a Merger Event, in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash or (ii) of an Event of Default in which Issuer is the Defaulting Party or a Termination Event in which Issuer is the Affected Party or an Extraordinary Event, which Event of Default, Termination Event or Extraordinary Event resulted from an event or events within Issuer’s control. Issuer shall be deemed to remake the representation set forth in Section 7(a)(i) as of the date of such election.  Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the Merger Date, the Tender Offer Date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of another Extraordinary Event, as applicable:

 

	
Share Termination   Alternative:
    	
If applicable, means   that Issuer shall deliver to Dealer the Share Termination Delivery Property   on the date on which the Payment Obligation would otherwise be due pursuant   to Section 12.7 or 12.9 of the Equity Definitions or   Section 6(d)(ii) of the Agreement, as applicable, or such later   date or dates as the Calculation Agent may reasonably determine (the “Share Termination Payment Date”), in satisfaction of the   Payment Obligation.
    
	
 
    	
 
    
	
Share Termination   Delivery Property:
    	
A number of Share   Termination Delivery Units, as calculated by the Calculation Agent, equal to   the Payment Obligation divided by the Share Termination Unit Price. The   Calculation Agent shall adjust the Share Termination Delivery Property by   replacing any fractional portion of the aggregate amount of a security   therein with an amount of cash equal to the value of such fractional security   based on the values used to calculate the Share Termination Unit Price.
    
	
 
    	
 
    
	
Share Termination Unit   Price:
    	
The value of property   contained in one Share Termination Delivery Unit on the date such Share   Termination Delivery Units are to be delivered as Share Termination Delivery   Property, as determined by the Calculation Agent in its discretion by   commercially reasonable means and notified by the Calculation Agent to   Issuer.
    
	
 
    	
 
    
	
Share Termination   Delivery Unit:
    	
In the case of a   Termination Event, Event of Default, Delisting, Additional Disruption Event   or Announcement Event, one Share or, in the case of an Insolvency,   Nationalization, Merger Event or Tender Offer, one Share or a unit consisting   of the number or amount of each type of property received by a holder of one   Share (without consideration of any requirement to pay cash or other   consideration in lieu of fractional amounts of any securities) in such   Insolvency, Nationalization, Merger Event or Tender Offer, as applicable. If   such Insolvency, Nationalization, Merger Event or Tender Offer involves a   choice of consideration to be received by holders, such holder shall be   deemed to have elected to receive the maximum possible amount of cash.
    
	
 
    	
 
    
	
Failure to Deliver:
    	
Applicable
    
	
 
    	
 
    
	
Other applicable   provisions:
    	
If Share Termination   Alternative is applicable, the provisions of Sections 1.27, 9.8, 9.9 and 9.11   (except that the Representation and Agreement contained in Section 9.11   of the Equity Definitions shall be modified by excluding any representations   therein relating to restrictions, obligations, limitations or requirements   under applicable securities laws arising as a result of the fact that Seller   is the issuer of the Shares or any portion of the Share Termination Delivery   Units), 9.12 and 10.5 of the
    

 

14

 

	
 
    	
Equity Definitions will   be applicable as if “Physical Settlement” applied to the Transaction, except   that all references to “Shares” shall be read as references to “Share   Termination Delivery Units”.
    

 

(b)                                 Registration/Private Placement Procedures.  (i)  If, in the good faith and reasonable judgment of Dealer based on the advice of counsel, for any reason, any Shares or any securities of Issuer or its affiliates comprising any Share Termination Delivery Units deliverable to Dealer hereunder (any such Shares or securities, “Delivered Securities”) would not be immediately freely transferable by Dealer under Rule 144 under the Securities Act, then the provisions set forth in this Section 8(b) shall apply.  At the election of Issuer by notice to Dealer within one Scheduled Trading Day after the relevant delivery obligation arises, but in any event at least one Scheduled Trading Day prior to the date on which such delivery obligation is due, either (A) all Delivered Securities delivered by Issuer to Dealer shall be, at the time of such delivery, covered by an effective registration statement of Issuer for immediate resale by Dealer (such registration statement and the corresponding prospectus (the “Prospectus”) (including, without limitation, any sections describing the plan of distribution) in form and content commercially reasonably satisfactory to Dealer) or (B) Issuer shall deliver additional Delivered Securities so that the value of such Delivered Securities, as determined by the Calculation Agent to reflect an appropriate liquidity discount, equals the value of the number of Delivered Securities that would otherwise be deliverable if such Delivered Securities were freely tradeable (without prospectus delivery) upon receipt by Dealer (such value, the “Freely Tradeable Value”); provided that, for the avoidance of doubt, Issuer may not make the election described in this clause (B) if, as of the date of its election, it has not complied with the requirements of Section 8(b)(iv) below. (For the avoidance of doubt, as used in this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant securities, as the context shall require.)

 

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

 

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

 

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

 

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

 

(A)                               Dealer (or an Affiliate of Dealer designated by Dealer) and any potential institutional purchaser of any such Delivered Securities from Dealer or such Affiliate identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation in compliance with applicable law with respect to Issuer customary in scope for private placements of equity securities of similar size (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them);

 

(B)                               Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into an agreement (a “Private Placement Agreement”) on commercially reasonable terms in connection with the private placement of such Delivered Securities by Issuer to Dealer or such Affiliate and the private resale of such Delivered Securities by Dealer or such Affiliate, substantially similar to private placement purchase agreements customary for private placements of equity securities of similar size, in form and substance commercially reasonably satisfactory to Dealer and Issuer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase

 

15

 

agreements for private placements of similar size relating to the indemnification of, and contribution in connection with the liability of, Dealer and its Affiliates and Issuer, shall provide for the payment by Issuer of all reasonable expenses in connection with such resale, including all reasonable fees and expenses of counsel for Dealer, shall contain representations, warranties and agreements of Issuer reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resale, and shall use best efforts to provide for the delivery of accountants’ “comfort letters” to Dealer or such Affiliate with respect to the financial statements and certain financial information contained in or incorporated by reference into the offering memorandum prepared for the resale of such Delivered Securities; and

 

(C)                               Issuer agrees that (i) any Delivered Securities so delivered to Dealer may be transferred by and among Dealer and its Affiliates, and Issuer shall effect such transfer without any further action by Dealer and (ii) after the minimum “holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed with respect to such Delivered Securities, Issuer shall promptly remove, or cause the transfer agent for such Delivered Securities to remove, any legends referring to any such restrictions or requirements from any Delivered Securities, without any further requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Dealer (or such affiliate of Dealer).

 

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

 

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

 

(c)                                  Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this Confirmation, in no event shall Dealer be entitled to receive, or shall be deemed to receive, any Shares in connection with this Transaction if, immediately upon giving effect to such receipt of such Shares, (i) Dealer’s Beneficial Ownership would be equal to or greater than 8.0 % of the outstanding Shares, (ii) Dealer, or any “affiliate” or “associate” of Dealer, would be an “interested stockholder” of Issuer, as all such terms are defined in Section 203 of the Delaware General Corporation Law or (iii) Dealer, Dealer Group (as defined below) or any person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under any federal, state or local (including non-U.S.) laws, regulations, regulatory orders or organizational documents or contracts of Issuer that are, in each case, applicable to ownership of Shares (“Applicable Laws”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval by a local, state, federal or non-U.S. regulator) of a Dealer Person, or could result in an adverse effect on a Dealer Person, under Applicable Laws, as determined by Dealer in its reasonable discretion, and with respect to which such requirements have not been met or the relevant approval has not been received or that would give rise to any consequences under the constitutive documents of Issuer or any contract

 

16

 

or agreement to which Issuer is a party, in each case minus (y) 1% of the number of Shares outstanding on the date of determination (each of clause (i), (ii) and (iii) above, an “Ownership Limitation”). If any delivery owed to Dealer hereunder is not made, in whole or in part, as a result of an Ownership Limitation, Dealer’s right to receive such delivery shall not be extinguished and Issuer shall make such delivery as promptly as practicable after, but in no event later than one Scheduled Trading Day after, Dealer gives notice to Issuer that such delivery would not result in any of such Ownership Limitations being breached.  “Dealer’s Beneficial Ownership” means the “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated thereunder (collectively, “Section 13”)) of Shares, without duplication, by Dealer, together with any of its affiliates or other person subject to aggregation with Dealer under Section 13 for purposes of “beneficial ownership”, or by any “group” (within the meaning of Section 13) of which Dealer is or may be deemed to be a part (Dealer and any such affiliates, persons and groups, collectively, “Dealer Group”) (or, to the extent that, as a result of a change in law, regulation or interpretation after the date hereof, the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such number).  Notwithstanding anything in the Agreement or this Confirmation to the contrary, Dealer (or the affiliate designated by Dealer pursuant to Section 8(k) below) shall not become the record or beneficial owner, or otherwise have any rights as a holder, of any Shares that Dealer (or such affiliate) is not entitled to receive at any time pursuant to this Section 8(c), until such time as such Shares are delivered pursuant to this Section 8(c).

 

(d)                                 Limitations on Settlement by Issuer.  Notwithstanding anything herein or in the Agreement to the contrary, in no event shall Issuer be required to deliver Shares in connection with the Transaction in excess of the Capped Number of Shares (as provided in Annex A to this Confirmation), subject to adjustment from time to time in accordance with the provisions of this Confirmation or the Definitions; provided that no such adjustment shall cause the Capped Number to exceed the Available Shares, other than an adjustment resulting from actions of Issuer or events within Issuer’s control (the “Capped Number”).  Issuer represents and warrants to Dealer (which representation and warranty shall be deemed to be repeated on each day that the Transaction is outstanding) that the Capped Number is equal to or less than the number of authorized but unissued Shares of the Issuer that are not reserved for future issuance in connection with transactions in the Shares (other than the Transaction) on the date of the determination of the Capped Number (such Shares, the “Available Shares”).  In the event Issuer shall not have delivered the full number of Shares otherwise deliverable as a result of this Section 8(d) (the resulting deficit, the “Deficit Shares”), Issuer shall be continually obligated to deliver, from time to time until the full number of Deficit Shares have been delivered pursuant to this paragraph, Shares when, and to the extent, that (i) Shares are repurchased, acquired or otherwise received by Issuer or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (ii) authorized and unissued Shares previously reserved for issuance in respect of other transactions become no longer so reserved or (iii) Issuer additionally authorizes any unissued Shares that are not reserved for other transactions.  Issuer shall promptly  notify Dealer of the occurrence of any of the foregoing events (including the number of Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be delivered) and promptly deliver such Shares thereafter.

 

(e)                                  Right to Extend.  Dealer may postpone or add, in whole or, other than in the event Dealer determines in good faith that such extension or addition resulted solely pursuant to the circumstances set forth in clause (ii)(y) below and solely with respect to voluntarily adopted policies and procedures, in part, any Exercise Date or Settlement Date or any other date of valuation or delivery, with respect to some or all of the relevant Warrants (in which event the Calculation Agent shall make appropriate adjustments in a commercially reasonable manner to the Number of Shares to be Delivered with respect to one or more Components), if Dealer determines, in its good faith, reasonable discretion (based, in the case of clause (ii) below, on the advice of counsel), that such extension is reasonably necessary or appropriate (i) to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions in the cash market, the stock loan market or any other relevant market (but only if Dealer determines that there is a material decrease in liquidity relative to Dealer’s expectations as of the Trade Date) or (ii) to enable Dealer to effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity hereunder in order to maintain, establish or unwind a commercially reasonable Hedge Position in connection with the Transaction, in a manner that would, if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance (x) with applicable legal, regulatory or self-regulatory requirements, or (y) with related policies and procedures applicable to Dealer (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer) provided that such policies and procedures have been adopted by Dealer in good faith and are generally applicable in similar situations and applied in a non-discriminatory manner.

 

(f)                                   Equity Rights.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders in the event of Issuer’s

 

17

 

bankruptcy.  For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during Issuer’s bankruptcy to any claim arising as a result of a breach by Issuer of any of its obligations under this Confirmation or the Agreement.  For the avoidance of doubt, the parties acknowledge that this Confirmation is not secured by any collateral that would otherwise secure the obligations of Issuer herein under or pursuant to any other agreement.

 

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

 

(i)                                     Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the words “a material”; and adding the phrase “or Warrants” at the end of the sentence.

 

(ii)                                  The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause (A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent Adjustment” is specified as the Method of Adjustment in the related Confirmation of a Share Option Transaction, then following the announcement or occurrence of any Potential Adjustment Event, the Calculation Agent will determine whether such Potential Adjustment Event has a material effect on the theoretical value of the relevant Shares or options on the Shares and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and, the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by deleting the words “diluting or concentrative” and the words “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)” and replacing such latter phrase with the words “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)”;

 

(iii)                               Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “that may have a diluting or concentrative” and replacing them with “that is the result of a corporate action of the Issuer or any of its affiliates” and adding the phrase “or Warrants” at the end of the sentence;

 

(iv)                              Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from the fourth line thereof the word “or” after the word “official” and inserting a comma therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events specified in Section 5(a)(vii) (1) through (9) of  the ISDA 2002 Master Agreement with respect to that Issuer.”;

 

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

 

(vi)                              Section 12.9(b)(v) of the Equity Definitions is hereby amended by (A) adding the word “or” immediately before subsection “(B)” and deleting the comma at the end of subsection (A); and (B)(1) deleting subsection (C) in its entirety, (2) deleting the word “or” immediately preceding subsection (C) and (3) replacing in the penultimate sentence the words “either party” with “the Hedging Party” and (4) deleting clause (X) in the final sentence.

 

(h)                                 Transfer and Assignment.  Dealer may transfer or assign its rights and obligations hereunder and under the Agreement, in whole or in part, at any time to (x) any affiliate of Dealer or (y) any third party that is a financial institution (or affiliate thereof) in connection with its corporate equity derivatives business, in either case, without the consent of the Issuer.  At any time at which any Ownership Limitation or a Hedging Disruption exists, if Dealer, in its discretion, is unable to effect a transfer or assignment to a third party after using its commercially reasonable efforts on pricing terms and within a time period reasonably acceptable to Dealer such that an Ownership Limitation or a Hedging Disruption, as the case may be, no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that such Ownership Limitation or Hedging Disruption, as the case may be, no longer exists.  In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section 8(b) of this Confirmation as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Issuer shall be the sole

 

18

 

Affected Party with respect to such partial termination and (iii) such portion of the Transaction shall be the only Terminated Transaction.

 

(i)                                     Adjustments.  For the avoidance of doubt, whenever the Calculation Agent is called upon to make an adjustment pursuant to the terms of this Confirmation or the Definitions to take into account the effect of an event, the Calculation Agent shall make such adjustment by reference to the effect of such event on the Hedging Party, assuming that the Hedging Party maintains a commercially reasonable hedge position, and taking into account the requirements under “Calculation Agent” above.

 

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

 

(k)                                 Designation by Dealer.  Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Issuer, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations.  Dealer shall be discharged of its obligations to Issuer solely to the extent of any such performance.

 

(l)                                     Additional Termination Events.  The occurrence of any of the following shall constitute an Additional Termination Event with respect to which the Transaction shall be the sole Affected Transaction and Issuer shall be the sole Affected Party; provided that with respect to any Additional Termination Event, Dealer may choose to treat part of the Transaction as the sole Affected Transaction, and, upon the termination of the Affected Transaction, a Transaction with terms identical to those set forth herein except with a Number of Warrants equal to the unaffected number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full force and effect:

 

(i)                                      Dealer reasonably determines, based on the advice of counsel, that it is advisable to terminate a portion of the Transaction so that Dealer’s related hedging activities will comply with applicable securities laws, rules or regulations or related policies and procedures of Dealer (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer), provided that such policies and procedures have been adopted by Dealer in good faith and are generally applicable in similar situations and applied in a non-discriminatory manner, for Dealer to refrain from or decrease any market activity in connection with the Transaction;

 

(ii)                                   a “person” or “group” (within the meaning of Section 13(d)(3) of the Exchange Act), other than Issuer or its wholly owned subsidiaries, has filed a Schedule TO or any schedule, form or other report under the Exchange Act disclosing that such person or group has become the direct or indirect “beneficial owner” (as determined in accordance with Rule 13d-3 under the Exchange Act) of Issuer’s shares of its common equity representing more than 50% of the voting power of all of its then-outstanding common equity;

 

(iii)                                the consummation of: (1) any sale, lease or other transfer, in one transaction or a series of transactions, of all or substantially all of the assets of Issuer and its subsidiaries, taken as a whole, to any person (other than any subsidiary of such person all of the outstanding capital stock or other ownership interests of which (other than directors’ qualifying shares) are owned by such person (a “wholly owned subsidiary”) or one or more wholly owned subsidiaries of such person); or (2) any transaction or series of related transactions in connection with which (whether by means of merger, consolidation, share exchange, combination, reclassification, recapitalization, acquisition, liquidation or otherwise) all of Issuer’s common stock is exchanged for, converted into, acquired for, or constitutes solely the right to receive, other securities, cash or other property;

 

(iv)                               the Issuer’s stockholders approve any plan or proposal for the Issuer’s liquidation or dissolution; or

 

(v)                                  the Shares cease to be listed on any of The New York Stock Exchange, The NASDAQ Global Market or The NASDAQ Global Select Market (or any of their respective successors).

 

19

 

Notwithstanding the foregoing, a transaction set forth in clause (ii) or (iii) above will not constitute an Additional Termination Event if at least 90% of the consideration received or to be received by the holders of the Shares (excluding cash payments for fractional shares or pursuant to dissenters’ rights) in connection with such transaction or event or such other transaction otherwise constituting an Additional Termination Event under clause (iii) above consists of shares of common stock listed (or depository receipts representing shares of common stock, which depository receipts are listed) on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors), or will be so listed when issued or exchanged in connection with such transaction or event.

 

(m)                             No Netting and Set-off.  Each party waives any and all rights it may have to set off obligations arising under the Agreement and the Transaction against other obligations between the parties, whether arising under any other agreement, applicable law or otherwise.

 

(n)                                 Early Unwind.  In the event the sale by Issuer of the “Initial Securities” (as defined under the Purchase Agreement) is not consummated with the Initial Purchasers (as defined in the Purchase Agreement) pursuant to the Purchase Agreement (the “Purchase Agreement”) dated as of March 14, 2018 between Issuer and Dealer, as representative of the Initial Purchasers party thereto for any reason by 9:00 A.M. (New York City time) on the third business day after the Trade Date (or such later date as agreed upon by the parties, which in no event shall be later than ten business days after such third business day) (such third business day or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”), on the Early Unwind Date, and the Transaction and all of the respective rights and obligations of Dealer and Issuer thereunder shall be cancelled and terminated.  Following such termination and cancellation, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of either party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date.  Dealer and Issuer represent and acknowledge to the other that upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.

 

(o)                                 Wall Street Transparency and Accountability Act of 2010.  The parties hereby agree that none of (v) Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), (w) any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, (x) the enactment of WSTAA or any regulation under the WSTAA, (y) any requirement under WSTAA nor (z) an amendment made by WSTAA, shall limit or otherwise impair either party’s rights to terminate, renegotiate, modify, amend or supplement this Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under this Confirmation, the Equity Definitions incorporated herein, or the Agreement (including, but not limited to, rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, Loss of Stock Borrow, Increased Cost of Stock Borrow, an Excess Ownership Position or Illegality (as defined in the Agreement)).

 

(p)                                 Tax Matters.

 

(i)                                     Withholding Tax imposed on payments to non-US counterparties under the United States Foreign Account Tax Compliance Act.  “Tax” and “Indemnifiable Tax”, each as defined in Section 14 of the Agreement, shall not include any U.S. federal withholding tax imposed or collected pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (a “FATCA Withholding Tax”). For the avoidance of doubt, a FATCA Withholding Tax is a Tax the deduction or withholding of which is required by applicable law for the purposes of Section 2(d) of the Agreement.

 

(ii)                                  HIRE Act.  “Tax” and “Indemnifiable Tax”, each as defined in Section 14 of the Agreement, shall not include any tax imposed on payments treated as dividends from sources within the United States under Section 871(m) of the Code or any regulations issued thereunder.

 

(iii)                               Tax documentation. Issuer shall provide to Dealer a valid U.S. Internal Revenue Service Form W-9, or any successor thereto, (i) on or before the date of execution of this Confirmation and (ii) promptly upon learning that any such tax form previously provided by Issuer has become obsolete or incorrect.  Additionally,

 

20

 

Issuer shall, promptly upon request by Dealer, provide such other tax forms and documents requested by Dealer.

 

(iv)                              Tax Representations.  Issuer is a corporation for U.S. federal income tax purposes and is organized under the laws of the State of Delaware.  Issuer is a “U.S. person” (as that term is used in section 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for U.S. federal income tax purposes and an exempt recipient under Treasury Regulation Section 1.6049-4(c)(1)(ii).

 

(q)                                 Waiver of Trial by Jury.  EACH OF ISSUER AND BUYER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF BUYER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

 

(r)                                    Governing Law; Jurisdiction.  THIS CONFIRMATION AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.  THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

 

(s)                                   Notice of Certain Other Events.

 

(i)                                     Issuer covenants and agrees that promptly following the public announcement of the results of any election by the holders of Shares with respect to the consideration due upon consummation of any Merger Event, Issuer shall give Dealer written notice of (x) the weighted average of the types and amounts of consideration that holders of Shares have elected to receive upon consummation of such Merger Event or (y) if no holders of Shares affirmatively make such election, the types and amounts of consideration actually received by holders of Shares (the date of such notification, the “Consideration Notification Date”); provided that in no event shall the Consideration Notification Date be later than the date on which such Merger Event is consummated; and

 

(ii)                                  promptly following the announcement of the consummation of any Merger Event, Potential Adjustment Event or Tender Offer, Issuer shall give Dealer notice of such announcement.

 

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

 

[Signature Page Follows]

 

21

 

Issuer hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Issuer with respect to the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Dealer at J.P. Morgan Securities LLC, 383 Madison Ave, New York, NY 10179, and by email to EDG_Notices@jpmorgan.com and edg.us.flow.corporates.mo@jpmorgan.com.

 

	
 
    	
Yours faithfully,
    
	
 
    	
 
    
	
 
    	
J.P.   MORGAN SECURITIES LLC,
    
	
 
    	
as agent for
    
	
 
    	
 
    
	
 
    	
JP MORGAN CHASE BANK,
    
	
 
    	
NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Santosh Sreenivasan
    
	
 
    	
 
    	
Name: Santosh   Sreenivasan
    
	
 
    	
 
    	
Title: Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
Agreed and Accepted By:
    	
 
    
	
 
    	
 
    
	
SUPERNUS   PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jack A. Khattar
    	
 
    
	
 
    	
Name: Jack A. Khattar
    	
 
    
	
 
    	
Title: President &   CEO
    	
 
    

 

22

 

Annex A

 

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

 

	
Component Number
    	
 
    	
Number of Warrants
    	
 
    	
Expiration Date
    
	
1.
    	
 
    	
11,798
    	
 
    	
July 5, 2023
    
	
2.
    	
 
    	
11,798
    	
 
    	
July 6, 2023
    
	
3.
    	
 
    	
11,798
    	
 
    	
July 7, 2023
    
	
4.
    	
 
    	
11,798
    	
 
    	
July 10, 2023
    
	
5.
    	
 
    	
11,798
    	
 
    	
July 11, 2023
    
	
6.
    	
 
    	
11,798
    	
 
    	
July 12, 2023
    
	
7.
    	
 
    	
11,798
    	
 
    	
July 13, 2023
    
	
8.
    	
 
    	
11,798
    	
 
    	
July 14, 2023
    
	
9.
    	
 
    	
11,798
    	
 
    	
July 17, 2023
    
	
10.
    	
 
    	
11,798
    	
 
    	
July 18, 2023
    
	
11.
    	
 
    	
11,798
    	
 
    	
July 19, 2023
    
	
12.
    	
 
    	
11,798
    	
 
    	
July 20, 2023
    
	
13.
    	
 
    	
11,798
    	
 
    	
July 21, 2023
    
	
14.
    	
 
    	
11,798
    	
 
    	
July 24, 2023
    
	
15.
    	
 
    	
11,798
    	
 
    	
July 25, 2023
    
	
16.
    	
 
    	
11,798
    	
 
    	
July 26, 2023
    
	
17.
    	
 
    	
11,798
    	
 
    	
July 27, 2023
    
	
18.
    	
 
    	
11,798
    	
 
    	
July 28, 2023
    
	
19.
    	
 
    	
11,798
    	
 
    	
July 31, 2023
    
	
20.
    	
 
    	
11,798
    	
 
    	
August 1, 2023
    
	
21.
    	
 
    	
11,798
    	
 
    	
August 2, 2023
    
	
22.
    	
 
    	
11,798
    	
 
    	
August 3, 2023
    
	
23.
    	
 
    	
11,798
    	
 
    	
August 4, 2023
    
	
24.
    	
 
    	
11,798
    	
 
    	
August 7, 2023
    
	
25.
    	
 
    	
11,798
    	
 
    	
August 8, 2023
    
	
26.
    	
 
    	
11,798
    	
 
    	
August 9, 2023
    
	
27.
    	
 
    	
11,798
    	
 
    	
August 10, 2023
    
	
28.
    	
 
    	
11,798
    	
 
    	
August 11, 2023
    
	
29.
    	
 
    	
11,798
    	
 
    	
August 14, 2023
    
	
30.
    	
 
    	
11,798
    	
 
    	
August 15, 2023
    
	
31.
    	
 
    	
11,798
    	
 
    	
August 16, 2023
    
	
32.
    	
 
    	
11,798
    	
 
    	
August 17, 2023
    
	
33.
    	
 
    	
11,798
    	
 
    	
August 18, 2023
    
	
34.
    	
 
    	
11,798
    	
 
    	
August 21, 2023
    
	
35.
    	
 
    	
11,798
    	
 
    	
August 22, 2023
    
	
36.
    	
 
    	
11,798
    	
 
    	
August 23, 2023
    
	
37.
    	
 
    	
11,798
    	
 
    	
August 24, 2023
    
	
38.
    	
 
    	
11,798
    	
 
    	
August 25, 2023
    
	
39.
    	
 
    	
11,798
    	
 
    	
August 28, 2023
    
	
40.
    	
 
    	
11,798
    	
 
    	
August 29, 2023
    
	
41.
    	
 
    	
11,798
    	
 
    	
August 30, 2023
    
	
42.
    	
 
    	
11,798
    	
 
    	
August 31, 2023
    
	
43.
    	
 
    	
11,798
    	
 
    	
September 1, 2023
    
	
44.
    	
 
    	
11,798
    	
 
    	
September 5, 2023
    
	
45.
    	
 
    	
11,798
    	
 
    	
September 6, 2023
    
	
46.
    	
 
    	
11,798
    	
 
    	
September 7, 2023
    
	
47.
    	
 
    	
11,798
    	
 
    	
September 8, 2023
    
	
48.
    	
 
    	
11,798
    	
 
    	
September 11, 2023
    
	
49.
    	
 
    	
11,798
    	
 
    	
September 12, 2023
    
	
50.
    	
 
    	
11,798
    	
 
    	
September 13, 2023
    
	
51.
    	
 
    	
11,798
    	
 
    	
September 14, 2023
    

 

23

 

	
52.
    	
 
    	
11,798
    	
 
    	
September 15, 2023
    
	
53.
    	
 
    	
11,798
    	
 
    	
September 18, 2023
    
	
54.
    	
 
    	
11,798
    	
 
    	
September 19, 2023
    
	
55.
    	
 
    	
11,798
    	
 
    	
September 20, 2023
    
	
56.
    	
 
    	
11,798
    	
 
    	
September 21, 2023
    
	
57.
    	
 
    	
11,798
    	
 
    	
September 22, 2023
    
	
58.
    	
 
    	
11,798
    	
 
    	
September 25, 2023
    
	
59.
    	
 
    	
11,798
    	
 
    	
September 26, 2023
    
	
60.
    	
 
    	
11,798
    	
 
    	
September 27, 2023
    
	
61.
    	
 
    	
11,798
    	
 
    	
September 28, 2023
    
	
62.
    	
 
    	
11,798
    	
 
    	
September 29, 2023
    
	
63.
    	
 
    	
11,798
    	
 
    	
October 2, 2023
    
	
64.
    	
 
    	
11,798
    	
 
    	
October 3, 2023
    
	
65.
    	
 
    	
11,798
    	
 
    	
October 4, 2023
    
	
66.
    	
 
    	
11,798
    	
 
    	
October 5, 2023
    
	
67.
    	
 
    	
11,798
    	
 
    	
October 6, 2023
    
	
68.
    	
 
    	
11,798
    	
 
    	
October 9, 2023
    
	
69.
    	
 
    	
11,798
    	
 
    	
October 10, 2023
    
	
70.
    	
 
    	
11,798
    	
 
    	
October 11, 2023
    
	
71.
    	
 
    	
11,798
    	
 
    	
October 12, 2023
    
	
72.
    	
 
    	
11,798
    	
 
    	
October 13, 2023
    
	
73.
    	
 
    	
11,798
    	
 
    	
October 16, 2023
    
	
74.
    	
 
    	
11,798
    	
 
    	
October 17, 2023
    
	
75.
    	
 
    	
11,798
    	
 
    	
October 18, 2023
    
	
76.
    	
 
    	
11,798
    	
 
    	
October 19, 2023
    
	
77.
    	
 
    	
11,798
    	
 
    	
October 20, 2023
    
	
78.
    	
 
    	
11,798
    	
 
    	
October 23, 2023
    
	
79.
    	
 
    	
11,798
    	
 
    	
October 24, 2023
    
	
80.
    	
 
    	
11,798
    	
 
    	
October 25, 2023
    
	
81.
    	
 
    	
11,798
    	
 
    	
October 26, 2023
    
	
82.
    	
 
    	
11,798
    	
 
    	
October 27, 2023
    
	
83.
    	
 
    	
11,798
    	
 
    	
October 30, 2023
    
	
84.
    	
 
    	
11,798
    	
 
    	
October 31, 2023
    
	
85.
    	
 
    	
11,798
    	
 
    	
November 1, 2023
    
	
86.
    	
 
    	
11,799
    	
 
    	
November 2, 2023
    
	
87.
    	
 
    	
11,799
    	
 
    	
November 3, 2023
    
	
88.
    	
 
    	
11,799
    	
 
    	
November 6, 2023
    
	
89.
    	
 
    	
11,799
    	
 
    	
November 7, 2023
    
	
90.
    	
 
    	
11,799
    	
 
    	
November 8, 2023
    
	
91.
    	
 
    	
11,799
    	
 
    	
November 9, 2023
    
	
92.
    	
 
    	
11,799
    	
 
    	
November 10, 2023
    
	
93.
    	
 
    	
11,799
    	
 
    	
November 13, 2023
    
	
94.
    	
 
    	
11,799
    	
 
    	
November 14, 2023
    
	
95.
    	
 
    	
11,799
    	
 
    	
November 15, 2023
    
	
96.
    	
 
    	
11,799
    	
 
    	
November 16, 2023
    
	
97.
    	
 
    	
11,799
    	
 
    	
November 17, 2023
    
	
98.
    	
 
    	
11,799
    	
 
    	
November 20, 2023
    
	
99.
    	
 
    	
11,799
    	
 
    	
November 21, 2023
    
	
100.
    	
 
    	
11,799
    	
 
    	
November 22, 2023
    

 

	
Strike Price:
    	
USD 80.9063
    
	
 
    	
 
    
	
Premium:
    	
USD 11,424,000
    

 

24

 

	
Final Disruption Date:
    	
December 6, 2023
    
	
 
    	
 
    
	
Maximum Stock Loan   Rate:
    	
200 basis points
    
	
 
    	
 
    
	
Initial Stock Loan   Rate:
    	
Prior to April 2,   2023, zero basis points, and thereafter, 25 basis points
    
	
 
    	
 
    
	
Capped Number of   Shares:
    	
2,212,153
    

 

25Exhibit 10.7

 

EXECUTION VERSION

 

	
 
    	
Deutsche   Bank 
    
	
 
    	
 
    
	
 
    	
Deutsche Bank AG, London Branch
    
	
 
    	
Winchester house
    
	
 
    	
1 Great Winchester St,   London EC2N 2DB
    
	
 
    	
Telephone: 44 20   7545 8000
    
	
 
    	
 
    
	
 
    	
c/o Deutsche   Bank Securities Inc.
    
	
 
    	
60 Wall Street
    
	
 
    	
New York, NY   10005
    
	
 
    	
Telephone:   212-250-2500
    
	
 
    	
 
    
	
 
    	
Internal   Reference: 777053
    

 

	
 
    	
March 15, 2018
    
	
 
    	
 
    
	
To:
    	
Supernus Pharmaceuticals, Inc.
    
	
 
    	
1550 East Gude Drive
    
	
 
    	
Rockville,   Maryland 20850
    
	
 
    	
Attn: Gregory S. Patrick
    
	
 
    	
Telephone: 301-838-2522
    

 

	
From:
    	
Deutsche Bank AG, London Branch
    

 

	
Re:
    	
Additional Convertible Bond Hedge Transaction
    

 

Ladies and Gentlemen:

 

The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of the above-referenced transaction entered into on the Trade Date specified below (the “Transaction”) between Deutsche Bank AG, London Branch (“Dealer”) and Supernus Pharmaceuticals, Inc. (“Counterparty”).  This communication constitutes a “Confirmation” as referred to in the ISDA 2002 Master Agreement specified below.

 

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

 

 

Chairman of the Supervisory Board: Paul Achleitner. Management Board: John Cryan (Chairman), Marcus Schenck, Christian Sewing, Kimberly Hammonds, Stuart Lewis, Sylvie Matherat, Nicolas Moreau, Garth Ritchie, Karl von Rohr, Werner Steinmüller.

 

Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank and the BaFin, Germany’s Federal Financial Supervisory Authority) and, in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the European Central Bank and by the BaFin, and is subject to limited regulation in the United Kingdom by the Financial Conduct Authority and the Prudential Regulation Authority.

 

Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany, Local Court of Frankfurt am Main, HRB No. 30 000; Branch Registration in England and Wales BR000005 and Registered Address: Winchester House, 1 Great Winchester Street, London EC2N 2DB. Deutsche Bank AG, London Branch is a member of the London Stock Exchange. (Details about the extent of our authorisation and regulation in the United Kingdom are available on request or from www.db.com/en/content/eu_disclosures.htm)

 

 

RELATING TO THIS TRANSACTION BETWEEN DEUTSCHE BANK AG, LONDON BRANCH, AND COUNTERPARTY SHALL BE TRANSMITTED EXCLUSIVELY THROUGH DEUTSCHE BANK SECURITIES INC. DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

 

1.              This Confirmation is subject to, and incorporates, the definitions and provisions of the 2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions” and, together with the 2006 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  In the event of any inconsistency between the 2006 Definitions and the Equity Definitions, the Equity Definitions will govern.  Certain defined terms used herein have the meanings assigned to them in the Indenture to be dated as of the closing date for the initial issuance of the Convertible Securities described below between Counterparty and Wilmington Trust, National Association as trustee (the “Indenture”) relating to the USD 350,000,000 principal amount of 0.625% convertible senior notes due 2023 (the “Initial Securities”) together with any 0.625% convertible senior notes due 2023 issued pursuant to the Initial Purchasers’ option under the Purchase Agreement (as defined below) (the “Option Securities” and, together with the Base Convertible Securities, the “Convertible Securities”).  In the event of any inconsistency between the terms defined in the Indenture and this Confirmation, this Confirmation shall govern.  For the avoidance of doubt, references herein to sections of the Indenture are based on the draft of the Indenture most recently reviewed by the parties at the time of execution of this Confirmation. If any relevant sections of the Indenture are changed, added or renumbered following execution of this Confirmation but prior to the execution of the Indenture, the parties will amend this Confirmation in good faith to preserve the economic intent of the parties based on the draft of the Indenture so reviewed.  The parties further acknowledge that references to the Indenture herein are references to the Indenture as in effect on the date of its execution and if the Indenture is, or the Convertible Securities are, amended, supplemented or modified following their execution, any such amendment, supplement or modification (other than a Merger Supplemental Indenture (as defined below)) will be disregarded for purposes of this Confirmation (other than as provided in Section 8(a) below) unless the parties agree otherwise in writing.

 

This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement (the “ISDA Form”) as if Dealer and Counterparty had executed an agreement in such form (without any Schedule but with the elections set forth in this Confirmation and the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Counterparty with a “Threshold Amount” of USD 35 million and to Dealer with a “Threshold Amount” equal to 3% of the shareholders’ equity of Deutsche Bank AG as of the Trade Date; provided that (i) the words “, or becoming capable at such time of being declared,” shall be deleted from such Section 5(a)(vi), (ii) the following language shall be added to the end of such Section 5(a)(vi): “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (1) the default was caused solely by error or omission of an administrative or operational nature; (2) funds were available to enable the party to make the payment when due; and (3) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.” and (iii) the term “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement, except that such term shall not include obligations in respect of deposits received in the ordinary course of a party’s banking business).  For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

 

All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein.  In the event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.  For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of this Confirmation, the Agreement or the Equity Definitions shall not be construed to exclude or limit the application of any other provision of this Confirmation, the Agreement or the Equity Definitions.

 

2.              The Transaction constitutes a Share Option Transaction for purposes of the Equity Definitions.  The terms of the particular Transaction to which this Confirmation relates are as follows:

 

General Terms:

 

	
Trade Date:
    	
 
    	
March 15, 2018
    

 

2

 

	
Effective Date:
    	
 
    	
The closing date of the Convertible Securities   issued pursuant to the Initial Purchasers’ option under the Purchase   Agreement (as defined below) exercised on the date hereof.
    
	
 
    	
 
    	
 
    
	
Option Type:
    	
 
    	
Call
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The common stock of Counterparty, par value USD   0.001 per share (Ticker Symbol: “SUPN”).
    
	
 
    	
 
    	
 
    
	
Number of Options:
    	
 
    	
The number of Option Securities in denominations of   USD 1,000 principal amount purchased by the Initial Purchasers (as defined in   the Purchase Agreement), upon exercise of the option pursuant to   Section 3(b) of the Purchase Agreement.
    
	
 
    	
 
    	
 
    
	
Applicable Percentage:
    	
 
    	
50%
    
	
 
    	
 
    	
 
    
	
Number of Shares:
    	
 
    	
As of any date, the product of (A) the Number   of Options, (B) the Conversion Rate and (C) the Applicable   Percentage.
    
	
 
    	
 
    	
 
    
	
Conversion Rate:
    	
 
    	
As of any date, the “Conversion Rate” (as defined in   the Indenture) as of such date, but without regard to any adjustments to the   “Conversion Rate” pursuant to Section 5.06 or 5.07 of the Indenture.
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
As provided in Annex A to this Confirmation.
    
	
 
    	
 
    	
 
    
	
Premium Payment Date:
    	
 
    	
The Effective Date
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The NASDAQ Global Market
    
	
 
    	
 
    	
 
    
	
Related Exchange:
    	
 
    	
All Exchanges
    

 

Procedures for Exercise:

 

	
Exercise Dates:
    	
 
    	
Each Conversion Date.
    
	
 
    	
 
    	
 
    
	
Conversion Date:
    	
 
    	
Each “Conversion Date”, as defined in the Indenture,   occurring during the period from and excluding the Trade Date to and   including the Expiration Date, for Convertible Securities, each in   denominations of USD 1,000 principal amount, that are submitted for   conversion on such Conversion Date in accordance with the terms of the   Indenture but are not “Relevant Convertible Securities” under, and as defined   in, the confirmation between the parties hereto regarding the Base   Convertible Bond Hedge Transaction dated March 14, 2018 (the “Base Convertible Bond Hedge Transaction Confirmation”)   (such Convertible Securities, each in denominations of USD 1,000 principal   amount, the “Relevant Convertible Securities”   for such Conversion Date). For the purposes of determining whether any   Convertible Securities will be Relevant Convertible Securities hereunder or   under the Base Convertible Bond Hedge Transaction Confirmation, Convertible   Securities that are converted pursuant to the Indenture shall be allocated   first to the Base Convertible Bond Hedge Transaction Confirmation until all   Options thereunder are exercised or terminated.
    
	
 
    	
 
    	
 
    
	
Required Exercise on Conversion   Dates:
    	
 
    	
On each Conversion Date, a number of Options equal   to the
    

 

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number of Relevant Convertible Securities for such   Conversion Date in denominations of USD 1,000 principal amount shall be   automatically exercised.
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
The second “Scheduled Trading Day” immediately   preceding the “Maturity Date” (each as defined in the Indenture).
    
	
 
    	
 
    	
 
    
	
Automatic Exercise:
    	
 
    	
As provided above under “Required Exercise on   Conversion Dates”; provided that   if Counterparty has not delivered to Dealer a related Notice of Exercise,   then in no event shall a Conversion Date be deemed to occur hereunder (and no   Option shall be exercised or deemed to be exercised hereunder) with respect   to any surrender of a Convertible Security for conversion in respect of which   Counterparty has elected to designate a financial institution for exchange in   lieu of conversion of such Convertible Security pursuant to Section 5.08   of the Indenture.
    
	
 
    	
 
    	
 
    
	
Exercise Notice   Deadline:
    	
 
    	
In respect of any exercise of Options hereunder on   any Conversion Date, the Exchange Business Day prior to the first “Scheduled   Trading Day” of the “Observation Period” (each as defined in the Indenture)   relating to the Convertible Securities converted on the Conversion Date (or,   if different, the first “Scheduled Trading Day” (as defined in the Indenture)   of the “Observation Period” that is deemed to apply hereunder in respect of   such Convertible Securities pursuant to “Convertible Security Settlement Method”   below) occurring in respect of the relevant Exercise Date; provided that, in the case of any exercise of Options   hereunder in connection with the conversion of any Relevant Convertible   Securities on any Conversion Date occurring during the period starting on and   including the 45th “Scheduled Trading Day” preceding the “Maturity Date”   (each as defined in the Indenture) (the “Final Conversion Period   Start Date”) and ending on and including the second “Scheduled   Trading Day” immediately preceding the “Maturity Date” (each as defined in   the Indenture) (the “Final Conversion Period”),   the Exercise Notice Deadline shall be the Scheduled Trading Day immediately   preceding the Maturity Date.
    
	
 
    	
 
    	
 
    
	
Notice of Exercise:
    	
 
    	
Notwithstanding anything to the contrary in the   Equity Definitions, Dealer shall have no obligation to make any payment or   delivery in respect of any exercise of Options hereunder unless Counterparty   notifies Dealer in writing prior to 5:00 P.M., New York City time, on the   Exercise Notice Deadline in respect of such exercise of (i) the number   of Options being exercised on the relevant Exercise Date, (ii) the   scheduled settlement date under the Indenture for the Relevant Convertible   Securities converted on the Conversion Date corresponding to such Exercise   Date, (iii) whether such Relevant Convertible Securities will be settled   by Counterparty by delivery of cash, Shares or a combination of cash and   Shares and, if such a combination, the “Specified Dollar Amount” (as defined   in the Indenture) and (iv) if applicable, the first “Scheduled Trading   Day” of the “Observation Period” (each as defined in the Indenture); provided that in the case of any exercise of Options   hereunder in connection with the conversion of any Relevant Convertible   Securities on any Conversion Date occurring during the Final Conversion   Period, the contents of such notice shall be solely as set forth in clause   (i) above, and Counterparty may provide Dealer with a single notice is   respect of all Options exercised during such period; provided,   further, that any “Notice of Exercise” delivered
    

 

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to Dealer pursuant to the Base Convertible Bond   Hedge Transaction Confirmation shall be deemed to be a Notice of Exercise   pursuant to this Confirmation and the terms of such Notice of Exercise shall   apply, mutatis mutandis, to this   Confirmation. Counterparty acknowledges its responsibilities under applicable   securities laws, and in particular Section 9 and   Section 10(b) of the Exchange Act (as defined below) and the   rules and regulations thereunder, in respect of any election of a settlement   method with respect to the Convertible Securities. For the avoidance of   doubt, if Counterparty fails to give such notice when due in respect of any   exercise of Options hereunder, Dealer’s obligation to make any payment or   delivery in respect of such exercise shall be permanently extinguished, and   late notice shall not cure such failure; provided that   notwithstanding the foregoing, such notice (and the related exercise of   Options) in connection with any conversion of Relevant Convertible Securities   prior to the Final Conversion Period shall be effective if given after the   Exercise Notice Deadline, but prior to 5:00 P.M., New York City time, on the   fifth Exchange Business Day following the Exercise Notice Deadline, in which   event the Calculation Agent shall have the right to adjust, in a commercially   reasonable manner, the Delivery Obligation as appropriate to reflect the   additional costs (including, but not limited to, hedging mismatches and   market losses) and commercially reasonable expenses incurred by Dealer in   connection with its hedging activities (including the unwinding of any hedge   position) as a result of Dealer not having received such notice on or prior   to the Exercise Notice Deadline.
    
	
 
    	
 
    	
 
    
	
Notice of Convertible   Security Settlement Method:
    	
 
    	
Counterparty shall notify Dealer in writing before   5:00 P.M., New York City time, on the 85th “Scheduled Trading Day” preceding   the “Maturity Date” (each as defined in the Indenture) of the irrevocable   election by the Counterparty, in accordance with Section 5.03(A) of   the Indenture, of the settlement method and, if applicable, the “Specified   Dollar Amount” (as defined in the Indenture) applicable to Relevant   Convertible Securities with a Conversion Date occurring on or after the 85th   “Scheduled Trading Day” preceding the “Maturity Date” and ending on and   including the second “Scheduled Trading Day” immediately preceding the   “Maturity Date” (each as defined in the Indenture) (the “Free   Convertibility Period”). If Counterparty fails timely to provide   such notice, Counterparty shall be deemed to have notified Dealer of   combination settlement with a “Specified Dollar Amount” (as defined in the   Indenture) of USD 1,000 for all conversions occurring during the Free   Convertibility Period. Counterparty agrees that it shall settle any Relevant   Convertible Securities with a Conversion Date occurring during the Free   Convertibility Period in the same manner as provided in the Notice of   Convertible Security Settlement Method it provides or is deemed to have   provided hereunder.
    

 

Settlement Terms:

 

	
Settlement Date:
    	
 
    	
In respect of an Exercise Date occurring in respect   of a Conversion Date, the settlement date for the cash and/or Shares (if any)   to be delivered in respect of the Relevant Convertible Securities converted   on such Conversion Date pursuant to Section 5.03(C) of
    

 

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the Indenture; provided that   the Settlement Date will not be prior to the later of (i) the date that   is one Settlement Cycle following the final day of the relevant “Observation   Period”, as defined in the Indenture (or, if different, the final day of the   relevant “Observation Period” that is deemed to apply hereunder in respect of   such Convertible Securities pursuant to “Convertible Security Settlement Method”   below) and (ii) the Exchange Business Day immediately following the date   Counterparty provides the Notice of Delivery Obligation prior to 5:00 P.M.,   New York City time.
    
	
 
    	
 
    	
 
    
	
Delivery Obligation:
    	
 
    	
In lieu of the obligations set forth in Sections 8.1   and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above,   in respect of an Exercise Date occurring in respect of a Conversion Date,   Dealer will deliver to Counterparty, on the related Settlement Date, a number   of Shares and/or amount of cash in USD equal to the Applicable Percentage of   the aggregate number of Shares, if any, that Counterparty would be obligated   to deliver to the holder(s) of the Relevant Convertible Securities   converted on such Conversion Date pursuant to Section 5.03 of the   Indenture and/or the Applicable Percentage of the aggregate amount of cash,   if any, in excess of USD 1,000 per Convertible Security (in denominations of   USD 1,000) that Counterparty would be obligated to deliver to   holder(s) pursuant to Section 5.03 of the Indenture, as determined   by the Calculation Agent by reference to such Section of the Indenture   (except that such aggregate number of Shares shall be determined without   taking into consideration any rounding pursuant to Section 5.03(B)(ii) of   the Indenture and shall be rounded down to the nearest whole number) and cash   in lieu of fractional Shares, if any, eliminated by such rounding, determined   as if Counterparty had elected to satisfy its conversion obligation in   respect of such Relevant Convertible Securities by the Convertible Security   Settlement Method, notwithstanding any different actual election by   Counterparty with respect to the settlement of such Convertible Securities   (the “Convertible Obligation”); provided that such obligation shall be determined   (i) excluding any Shares and/or cash that Counterparty is obligated to   deliver to holder(s) of the Relevant Convertible Securities as a result   of any adjustments to the Conversion Rate pursuant to Section 5.06 or   5.07 of the Indenture, except as set forth in the immediately following   proviso, and (ii) without regard to the election, if any, by   Counterparty to adjust the Conversion Rate (in the case of this clause (ii),   other than, for the avoidance of doubt, any adjustment pursuant to the Indenture   in respect of an Adjustment Event in respect of which a corresponding   adjustment is made in respect of the Transaction under “Method of Adjustment”   below) (and, for the avoidance of doubt, the Delivery Obligation shall not   include any interest payment on the Relevant Convertible Securities that the   Counterparty is (or would have been) obligated to deliver to   holder(s) of the Relevant Convertible Securities for such Conversion   Date); and provided further that if such   exercise relates to the conversion of Relevant Convertible Securities in   connection with which additional Shares would be added to the Conversion Rate   pursuant to the adjustment set forth in Section 5.07 of the Indenture,   then, notwithstanding the foregoing or anything to the contrary contained   under “Conversion Rate” above, “Consequences of Merger Events” below or
    

 

6

 

	
 
    	
 
    	
elsewhere herein, the Delivery Obligation shall be   calculated as if the Conversion Rate included such additional Shares (as   determined by the Calculation Agent by reference to such Section of the   Indenture), except that the Delivery Obligation shall be capped so that the   value of the Delivery Obligation (with the value of any Shares included in   the Delivery Obligation determined by the Calculation Agent using the VWAP   Price on the last day of the relevant “Observation Period” (or, if different,   the last day of the relevant “Observation Period” that is deemed to apply   hereunder in respect of such Convertible Securities pursuant to “Convertible   Security Settlement Method” below)) does not exceed the amount as determined   by the Calculation Agent that would be payable by Dealer pursuant to   Section 6 of the Agreement if such Conversion Date were an Early Termination   Date resulting from an Additional Termination Event with respect to which the   Transaction (except that, for purposes of determining such amount   (x) the Number of Options shall be deemed to be equal to the number of   Options exercised on such Exercise Date and (y) such amount payable will   be determined as if Section 5.07 of the Indenture were deleted) were the   sole Affected Transaction and Counterparty were the sole Affected Party   (determined without regard to Section 8(b) of this Confirmation).   Notwithstanding the foregoing, and in addition to the cap described in the   further proviso to the preceding sentence, in all events the Delivery   Obligation shall be capped so that the value of the Delivery Obligation does   not exceed the Applicable Percentage of the value of the Convertible   Obligation (with the Convertible Obligation determined based on the actual   settlement method elected by Counterparty with respect to such Relevant   Convertible Securities instead of the Convertible Security Settlement Method   and with the value of any Shares included in either the Delivery Obligation   or such Convertible Obligation determined by the Calculation Agent using the   VWAP Price on the last day of the relevant “Observation Period” (or with   respect to the Delivery Obligation, if different, the last day of the   relevant “Observation Period” that is deemed to apply hereunder in respect of   such Convertible Securities pursuant to “Convertible Security Settlement   Method” below)).
    
	
 
    	
 
    	
 
    
	
Convertible Security   Settlement Method:
    	
 
    	
For any Relevant Convertible Securities, if   Counterparty has notified Dealer in the related Notice of Exercise (or in the   Notice of Convertible Security Settlement Method, as the case may be) that   (x) it has elected to satisfy its conversion obligation in respect of   such Relevant Convertible Securities in cash or in a combination of cash and   Shares in accordance with Section 5.03(A) of the Indenture (a “Cash Election”) with a “Specified Dollar Amount” (as   defined in the Indenture) of at least USD 1,000 or (y) it has elected   (or is deemed to have elected) for such Relevant Convertible Securities to be   settled in a combination of cash and Shares with a “Specified Dollar Amount”   (as defined in the Indenture) of USD 1,000 in accordance with Section    5.03(A)(iv) of the Indenture, in either case, the Convertible Security   Settlement Method shall be the settlement method actually so elected (in the   case of the immediately preceding clause (x)) or so deemed to be elected (in   the case of the immediately preceding clause (y)) by Counterparty in respect   of such Relevant Convertible Securities; otherwise, the Convertible Security   Settlement Method shall (i) be
    

 

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determined as if Counterparty had made a Cash   Election with respect to such Relevant Convertible Securities with a   “Specified Dollar Amount” (as defined in the Indenture) of USD 1,000 per   Relevant Convertible Security and (ii) be calculated as if the relevant   “Observation Period” (as defined in the Indenture) pursuant to   Section 5.03(B) of the Indenture consisted of 80 Trading Days   commencing on (x) the third “VWAP Trading Day” (as defined in the   Indenture) after the Conversion Date for conversions occurring prior to the   Free Convertibility Period or (y) the 82nd “Scheduled Trading Day” prior   to the “Maturity Date” (each as defined in the Indenture) for conversions   occurring on or after the 85th “Scheduled Trading Day” prior to the “Maturity   Date” (each as defined in the Indenture).
    
	
 
    	
 
    	
 
    
	
Notice of Delivery   Obligation:
    	
 
    	
No later than the Scheduled Trading Day immediately   following the last day of the relevant “Observation Period”, as defined in   the Indenture, Counterparty shall give Dealer notice of the final number of   Shares and/or cash comprising the Convertible Obligation and the scheduled   settlement date with respect thereto; provided that,   with respect to any Exercise Date occurring during the Final Conversion   Period, Counterparty may provide Dealer with a single notice of an aggregate   number of Shares and/or cash comprising the Convertible Obligations for all   Exercise Dates occurring in such period (it being understood, for the avoidance   of doubt, that the requirement of Counterparty to deliver such notice shall   not limit Counterparty’s obligations with respect to Notice of Exercise or   Notice of Convertible Security Settlement Method or Dealer’s obligations with   respect to Delivery Obligation, each as set forth above, in any way).
    
	
 
    	
 
    	
 
    
	
Other Applicable   Provisions:
    	
 
    	
To the extent Dealer is obligated to deliver Shares   hereunder, the provisions of Sections 1.27, 9.1(c), 9.8, 9.9 and 9.11 (except   that the Representation and Agreement contained in Section 9.11 of the   Equity Definitions shall be modified by excluding any representations therein   relating to restrictions, obligations, limitations or requirements under   applicable securities laws arising as a result of the fact that Counterparty   is the Issuer of the Shares) of the Equity Definitions will be applicable as   if “Physical Settlement” applied to the Transaction.
    
	
 
    	
 
    	
 
    
	
Restricted Certificated   Shares:
    	
 
    	
Notwithstanding anything to the contrary in the   Equity Definitions, Dealer may, in whole or in part, deliver Shares required   to be delivered to Counterparty hereunder in certificated form in lieu of   delivery through the Clearance System. With respect to such certificated   Shares, the Representation and Agreement contained in Section 9.11 of   the Equity Definitions shall be modified by deleting the remainder of the   provision after the word “encumbrance” in the fourth line thereof.
    

 

Share Adjustments:

 

	
Method of Adjustment:
    	
 
    	
Calculation Agent Adjustment, which means that,   notwithstanding Section 11.2(c) of the Equity Definitions (and in   lieu of the adjustments set forth therein), upon the occurrence of any event   or condition set forth in any Dilution Adjustment Provision that the   Calculation Agent determines would result in an adjustment under the   Indenture by reference to such provisions thereof (any such event or   condition, an “Adjustment Event”), the   Calculation
    

 

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Agent shall make a corresponding adjustment in a commercially   reasonable manner to any one or more of the strike price, Number of Options   and any other variable relevant to the exercise, settlement, payment or other   terms of the Transaction, subject to “Discretionary Adjustments” below.

 

For the avoidance of doubt, Dealer shall not have   any delivery or payment obligation hereunder in respect of, and no adjustment   shall be made to the terms of the Transaction on account of, (x) any   distribution of cash, property or securities by Counterparty to holders of the   Convertible Securities (upon conversion or otherwise) or (y) any other   transaction in which holders of the Convertible Securities are entitled to   participate, in each case, in lieu of an adjustment under the Indenture in   respect of an Adjustment Event (including, without limitation, pursuant to   the proviso in the first paragraph of Section 5.05(A)(iii) of the   Indenture or the proviso in the first paragraph of   Section 5.05(A)(iii) of the Indenture).
    
	
 
    	
 
    	
 
    
	
Discretionary   Adjustments:
    	
 
    	
Notwithstanding anything to the contrary herein or   in the Equity Definitions:

 

i.                                          if   the Calculation Agent in good faith disagrees with any adjustment under the   Indenture that involves an exercise of discretion by Counterparty or its   board of directors (including, without limitation, pursuant to   Section 5.05(G)of the Indenture or pursuant to Section 5.08(A)of   the Indenture or any supplemental indenture entered into thereunder pursuant   to Section 5.08(A) of the Indenture (a “Merger   Supplemental Indenture”) or the determination of the fair value of   any securities, property, rights or other assets), then in each such case the   Calculation Agent will determine the adjustment to be made to any one or more   of the strike price, Number of Options and any other variable relevant to the   exercise, settlement, or payment for the Transaction in a commercially   reasonable manner; provided   that, notwithstanding the foregoing, if any Adjustment Event occurs during   the relevant “Observation Period” (as defined in the Indenture) but no   adjustment was made to any Convertible Security under the Indenture because   the relevant holder(s) of the Convertible Security was deemed to be a   record owner of the underlying Shares on the related Conversion Date, then   the Calculation Agent shall make a commercially reasonable adjustment, as   determined by it, to the terms hereof in order to account for such Adjustment   Event.

 

ii.                                       in   connection with any Adjustment Event as a result of an event or condition set   forth in Section 5.05(A)(ii)of the Indenture or Section 5.05(A)(iii)of   the Indenture where, in either case, the period for determining “Y” (as such   term is used in Section 5.05(A)(ii) of the Indenture) or “SP” (as   such term is used in Section 5.05(A)(iii) of the Indenture), as the   case may be, begins before Counterparty has publicly announced the event or   condition giving rise to such Adjustment Event, then the Calculation Agent   shall have the right to adjust, in good faith and in a commercially   reasonable manner, taking into account the terms of the
    

 

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Indenture, any variable   relevant to the exercise, settlement or payment for the Transaction as   appropriate to reflect the costs (including, but not limited to, hedging   mismatches and market losses) and commercially reasonable expenses incurred   by Dealer in connection with its hedging activities as a result of such event   or condition not having been publicly announced prior to the beginning of   such period; and

 

iii.                                    if   any Adjustment Event is declared and (a) the event or condition giving   rise to such Adjustment Event is subsequently amended, modified, cancelled or   abandoned, (b) the “Conversion Rate” (as defined in the Indenture) is   otherwise not adjusted at the time or in the manner contemplated by the   relevant Dilution Adjustment Provision based on such declaration or   (c) the “Conversion Rate” (as defined in the Indenture) is adjusted as a   result of such Adjustment Event and subsequently re-adjusted (each of clauses   (a), (b) and (c), an “Adjustment Event Change”)   then, in each case, the Calculation Agent shall have the right to adjust, in   good faith and in a commercially reasonable manner, taking into account the   terms of the Indenture, any variable relevant to the exercise, settlement or   payment for the Transaction as appropriate to reflect the costs (including,   but not limited to, hedging mismatches and market losses) and commercially   reasonable expenses incurred by Dealer in connection with its hedging   activities as a result of such Adjustment Event Change.

 
    
	
 
    	
 
    	
 
    
	
Dilution Adjustment   Provisions:
    	
 
    	
Sections 5.05(A)(i), (ii), (iii), (iv) and   (v) and Section 5.05(G)of the Indenture.
    

 

Extraordinary Events:

 

	
Merger Events:
    	
 
    	
Notwithstanding Section 12.1(b) of the   Equity Definitions, a “Merger Event” means the occurrence of any event or   condition set forth in Section 5.08(A) of the Indenture.
    
	
 
    	
 
    	
 
    
	
Consequences of Merger   Events:
    	
 
    	
Notwithstanding Sections 12.2 and 12.3 of the Equity   Definitions, upon the occurrence of a Merger Event that the Calculation Agent   determines by reference to Section 5.08(A) of the Indenture would   result in an adjustment under the Indenture, the Calculation Agent shall make   a corresponding adjustment in a commercially reasonable manner to the terms   relevant to the exercise, settlement, payment or other terms of the   Transaction, subject to “Discretionary Adjustments” above; provided that such adjustment shall be made without regard   to (i) any adjustment to the Conversion Rate pursuant to   Section 5.06 or 5.07 of the Indenture and (ii) the election, if   any, by Counterparty to adjust the Conversion Rate (in the case of this   clause (ii), other than, for the avoidance of doubt, any adjustment pursuant   to the Indenture in respect of an Adjustment Event in respect of which a   corresponding adjustment is made in respect of the Transaction under “Method   of Adjustment” above); and provided further   that the Calculation Agent may limit or alter any such adjustment referenced   in this paragraph so that the fair value of the Transaction to Dealer (taking   into account a commercially reasonable hedge position) is not adversely   affected as a result of
    

 

10

 

	
 
    	
 
    	
such adjustment; and provided   further that if, with respect to a Merger Event, (i) the   consideration for the Shares includes (or, at the option of a holder of   Shares, may include) shares (or depositary receipts evidencing interests in   shares) of an entity or person that is not a corporation organized under the   laws of the United States, any State thereof or the District of Columbia or   (ii) Counterparty following such Merger Event will not be a corporation   organized under the laws of the United States, any State thereof or the   District of Columbia or will not be the Issuer following such Merger Event,   Dealer may elect in its sole discretion that Cancellation and Payment   (Calculation Agent Determination) shall apply.
    
	
 
    	
 
    	
 
    
	
Notice of Merger   Consideration:
    	
 
    	
Upon the occurrence of a Merger Event that causes   the Shares to be converted into the right to receive more than a single type   of consideration (determined based in part upon any form of stockholder   election), Counterparty shall reasonably promptly (but, in any event prior to   the effective time of such Merger Event) notify the Calculation Agent of   (i) the weighted average of the types and amounts of consideration to be   received by the holders of Shares entitled to receive cash, securities or   other property or assets with respect to or in exchange for such Shares in   any Merger Event who affirmatively make such an election or, if no holders of   Shares affirmatively make such an election, the types and amounts of   consideration actually received by holders of Shares and (ii) the   details of the adjustment made under the Indenture in respect of such Merger   Event.
    
	
 
    	
 
    	
 
    
	
Nationalization, Insolvency   or Delisting:
    	
 
    	
Cancellation and Payment (Calculation Agent   Determination); provided that, in addition to   the provisions of Section 12.6(a)(iii) of the Equity Definitions,   it shall also constitute a Delisting if the Exchange is located in the United   States and the Shares are not immediately re-listed, re-traded or re-quoted   on any of the New York Stock Exchange, The NASDAQ Global Select Market or The   NASDAQ Global Market (or their respective successors); if the Shares are   immediately re-listed, re-traded or re-quoted on any such exchange or   quotation system, such exchange or quotation system shall thereafter be   deemed to be the Exchange.
    
	
 
    	
 
    	
 
    
	
Additional Disruption Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(a)         Change in Law:
    	
 
    	
Applicable; provided that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended by   (x) adding the words “(including, for the avoidance of doubt and without   limitation, adoption or promulgation of new regulations authorized or   mandated by existing statute)” after the word “regulation” in the second line   thereof, (y) adding the words “or any Hedge Positions” after the word   “Shares” in the clause (X) thereof and (z) adding the words “, or   holding, acquiring or disposing of Shares or any Hedge Positions relating   to,” after the words “obligations under” in clause (Y) thereof.
    
	
 
    	
 
    	
 
    
	
(b)         Failure to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
(c)          Insolvency Filing:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
(d)         Hedging Disruption:
    	
 
    	
Applicable; provided   that:
    

 

11

 

	
 
    	
 
    	
(i)  Section 12.9(a)(v) of the Equity   Definitions is hereby amended by (a) inserting the following words at   the end of clause (A) thereof: “in the manner contemplated by the   Hedging Party on the Trade Date” and (b) inserting the following two   phrases at the end of such Section:

 

“For the avoidance of doubt, the term “equity price   risk” shall be deemed to include, but shall not be limited to, stock price   and volatility risk. And, for the further avoidance of doubt, any such   transactions or assets referred to in phrases (A) or (B) above must   be available on commercially reasonable pricing terms.”; and

 

(ii) Section 12.9(b)(iii) of the   Equity Definitions is hereby amended by inserting in the third line thereof,   after the words “to terminate the Transaction”, the words “or a portion of   the Transaction affected by such Hedging Disruption”.
    
	
 
    	
 
    	
 
    
	
(e)          Increased Cost of   Hedging:
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
 
    
	
Hedging Party:
    	
 
    	
For all applicable Potential Adjustment Events and   Extraordinary Events, Dealer
    
	
 
    	
 
    	
 
    
	
Determining Party:
    	
 
    	
For all applicable Extraordinary Events, Dealer
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements and   Acknowledgments Regarding Hedging Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional Acknowledgments:
    	
 
    	
Applicable
    

 

12

 

3.              Calculation Agent:                  Dealer; provided that, notwithstanding anything to the contrary, all determinations, adjustments and calculations performed by Dealer in its capacity as Calculation Agent, as well as any determinations, adjustments or calculations by Dealer in any other capacity, pursuant to this Confirmation, the Agreement and the Equity Definitions shall be made in good faith and in a commercially reasonable manner based on commercially reasonable inputs.  In the event the Calculation Agent or Dealer makes any calculation, adjustment or determination pursuant to this Confirmation, the Agreement or the Equity Definitions, the Calculation Agent or Dealer shall, upon written request from Counterparty, commercially reasonably promptly provide an explanation in reasonable detail of the basis for any such determination, adjustment or calculation (including any quotations, market data or information from external sources used in making such calculation, adjustment or determination, as the case may be, but without disclosing Calculation Agent’s or Dealer’s proprietary models or other information that is subject to contractual, legal or regulatory obligations to not disclose such information); provided that following the occurrence of an event described under Section 5(a)(vii) of the Agreement with respect to which Dealer is the Defaulting Party, if the Calculation Agent fails to timely make any calculation, adjustment or determination required to be made by the Calculation Agent hereunder or to perform any obligation of the Calculation Agent hereunder and such failure continues for five (5) Exchange Business Days following notice to the Calculation Agent by Counterparty of such failure, Counterparty shall have the right to designate an independent, nationally recognized third-party dealer in the over-the-counter corporate equity derivatives to act as the Calculation Agent over the period during which such Event of Default has occurred and is continuing, and the parties hereto shall work in good faith to execute any appropriate documentation required by such replacement Calculation Agent.  For the avoidance of doubt, to the extent of any such adjustments or amendments to the terms of this Confirmation or the Transaction, the Confirmation and Transaction shall retain (i) contingencies to exercise that are not an observable market, other than the market for the Counterparty’s stock (or the Share Termination Delivery Units, as applicable) or an observable index, other than an index calculated or measured solely by reference to the Counterparty’s own operations (or the issuer of the Share Termination Delivery Units’ own operations, as applicable), (ii) the commercially reasonable nature of adjustments permitted to the Transaction (such as to consider changes in volatility, expected dividends, stock price, strike price, stock loan rate or liquidity relevant to the Shares (or the Share Termination Delivery Units, as applicable), other commercially reasonable option pricing inputs and the ability to maintain a commercially reasonable hedge position relating to the underlying shares) and (iii) settlement in Shares (or the Share Termination Delivery Units, as applicable) as the default settlement method (subject to Counterparty’s ability to elect otherwise subject to certain conditions) or as a settlement method that may be elected subject to certain conditions, as applicable, pursuant to “Convertible Security Settlement Method” above and Section 8(b) below.

 

4.              Account Details:

 

	
 
    	
Dealer Payment   Instructions:
    	
To be provided by Dealer.
    
	
 
    	
 
    	
 
    
	
 
    	
Counterparty Payment   Instructions:
    	
To be provided by   Counterparty.
    

 

5.              Offices:

 

The Office of Dealer for the Transaction is: London

 

The Office of Counterparty for the Transaction is: Not applicable

 

6.              Notices: For purposes of this Confirmation:

 

Address for notices or communications to Counterparty:

 

	
 
    	
To:
    	
Supernus   Pharmaceuticals, Inc.
    
	
 
    	
 
    	
1550 East Gude Drive
    
	
 
    	
 
    	
Rockville, Maryland 20850
    
	
 
    	
Attn:
    	
Gregory S. Patrick
    
	
 
    	
Telephone:
    	
301-838-2522
    
	
 
    	
Email:
    	
gpatrick@supernus.com
    
				

 

Address for notices or communications to Dealer:

 

	
 
    	
Deutsche Bank AG, London Branch
    
	
 
    	
c/o Deutsche Bank Securities Inc.
    

 

13

 

	
 
    	
60 Wall Street
    
	
 
    	
New York, NY 10005
    
	
 
    	
Attention:
    	
Andrew Yaeger
    
	
 
    	
Telephone:
    	
212-250-2717
    
	
 
    	
Email:
    	
Andrew.Yaeger@db.com
    
	
 
    	
 
    
	
 
    	
With a copy to:
    
	
 
    	
(same address as above)
    
	
 
    	
Attention:
    	
Faiz Khan
    
	
 
    	
Telephone:
    	
212-250-0668
    
	
 
    	
Email:
    	
Faiz.Khan@db.com
    

 

7.              Representations, Warranties and Agreements:

 

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

 

(i)                                     On the Trade Date and any date on which Counterparty makes an election hereunder, (A) Counterparty is not aware of any material nonpublic information regarding Counterparty or the Shares and (B) Counterparty’s  most recent Annual Report on Form 10-K, taken together with all reports and other documents subsequently filed by it with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents) do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.

 

(ii)                                  (A) On the Trade Date, the Shares or securities that are convertible into, or exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”) and (B) Counterparty shall not engage in any “distribution,” as such term is defined in Regulation M, in each case other than a distribution meeting the requirements of the exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day immediately following the Trade Date.

 

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

 

(iv)                              Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Dealer is not making any representations or warranties or taking any position or expressing any view with respect to the treatment of the Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity (or any successor issue statements) or under FASB’s Liabilities & Equity Project.

 

(v)                                 As of the Trade Date (or at any time during the ten business day period immediately preceding the Trade Date), Counterparty and its affiliates have not announced or been engaged in an “issuer tender offer” as such term is defined in Rule 13e-4 under the Exchange Act, nor is it aware of any third party tender offer with respect to the Shares within the meaning of Rule 13e-1 under the Exchange Act.

 

(vi)                              On or prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board of directors or a duly authorized committee thereof authorizing the Transaction.

 

14

 

(vii)                           Counterparty is not entering into this Confirmation nor making any election hereunder or under the Convertible Securities to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

 

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

 

(ix)                              On each of the Trade Date and the Premium Payment Date, Counterparty is not, or will not be, “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase the Number of Shares hereunder and under the Base Convertible Bond Hedge Transaction Confirmation in compliance with the laws of the jurisdiction of its incorporation.

 

(x)                                 To Counterparty’s knowledge, other than general provisions of the Delaware General Corporation Law, no state or local (including non-U.S. jurisdictions) or non-U.S. federal law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares.

 

(xi)                              [RESERVED].

 

(xii)                           Counterparty understands no obligations of Dealer to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any affiliate of Dealer or any governmental agency.

 

(b)                                 Each of Dealer and Counterparty agrees and represents that it is an “eligible contract participant” as defined in Section 1a(18) of the U.S. Commodity Exchange Act, as amended.

 

(c)                                  Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof.  Accordingly, Counterparty represents and warrants to Dealer that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own account and without a view to the distribution or resale thereof and (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws.

 

(d)                                 Counterparty agrees and acknowledges that Dealer is a “financial institution” and “financial participant” within the meaning of Sections 101(22) and 101(22A) of the Bankruptcy Code.  The parties hereto further agree and acknowledge that it is the intent of the parties that (A) this Confirmation is  a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code and a “termination value, payment amount, or other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code, and (B) Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 548(d)(2), 555 and 561 of the Bankruptcy Code.

 

(e)                                  Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Effective Date and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement and Section 7(a)(viii) hereof.

 

8.  Other Provisions:

 

(a)                                 Additional Termination Events.

 

(i) The occurrence of (x) an “Event of Default” with respect to Counterparty under the terms of the

 

15

 

Convertible Securities as set forth in Section 7.01 of the Indenture that has resulted in the principal and the interest with respect to the Convertible Securities becoming immediately due and payable or (y) an Amendment Event shall be an Additional Termination Event with respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole Affected Party and Dealer shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement (except that, in the case of an Additional Termination Event described in clause (x) above, Dealer shall designate an Early Termination Date pursuant to Section 6(b) of the Agreement no later than the date on or as promptly as commercially reasonably practicable after the date Dealer receives notice of the acceleration of such Convertible Securities (unless otherwise agreed by the parties)).

 

“Amendment Event” means that Counterparty amends, modifies, supplements, waives or obtains a waiver in respect of any term of the Indenture or the Convertible Securities governing the principal amount, coupon, maturity, repurchase obligation of Counterparty, redemption right of Counterparty, any term relating to conversion of the Convertible Securities (including changes to the conversion rate, conversion rate adjustment provisions, conversion settlement dates or conversion conditions), or any term that would require consent of the holders of not less than 100% of the principal amount of the Convertible Securities to amend, in each case without the consent of Dealer, such consent not to be unreasonably withheld or delayed. For the avoidance of doubt, neither the application of the conversion rate adjustment provisions of the Indenture nor the entry into a Merger Supplemental Indenture shall constitute an Amendment Event.

 

(ii) Promptly following, but in no event later than the fifth Scheduled Trading Day after, any Repayment Event, Counterparty shall notify Dealer in writing of such Repayment Event and the aggregate principal amount of Convertible Securities subject to such Repayment Event (any such notice, a “Repayment Notice”). Notwithstanding anything to the contrary in this Confirmation, the receipt by Dealer from Counterparty of any Repayment Notice, within the applicable time period set forth in the preceding sentence, shall constitute an Additional Termination Event as provided in this Section 8(a)(ii).  Upon receipt of any such Repayment Notice, Dealer shall designate an Exchange Business Day following receipt of such Repayment Notice (which Exchange Business Day shall be on or as promptly as commercially reasonably practicable after the date of receipt of the Repayment Notice) as an Early Termination Date with respect to the portion of this Transaction corresponding to a number of Options (the “Repayment Options”) equal to the lesser of (A) the aggregate principal amount of Convertible Securities specified in such Repayment Notice (it being understood that, for purposes of determining whether any Options will be Repayment Options hereunder or under the Base Convertible Bond Hedge Transaction Confirmation, Convertible Securities that are subject to a Repayment Notice shall be allocated first to the Base Convertible Bond Hedge Transaction Confirmation until all Options thereunder are exercised or terminated), divided by USD 1,000, and (B) the Number of Options as of the date Dealer designates such Early Termination Date and, as of such date, the Number of Options shall be reduced by the number of Repayment Options.  Any payment hereunder with respect to such termination shall be calculated pursuant to Section 6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction having terms identical to this Transaction and a Number of Options equal to the number of Repayment Options, (2) Counterparty were the sole Affected Party with respect to such Additional Termination Event and (3) the terminated portion of the Transaction were the sole Affected Transaction.  Counterparty acknowledges its responsibilities under applicable securities laws, and in particular Section 9 and Section 10(b) of the Exchange Act and the rules and regulations thereunder, in respect of any action taken by Counterparty in respect of a repurchase or cancellation of Convertible Securities, including, without limitation, the delivery of a Repayment Notice.  Counterparty acknowledges and agrees that any Convertible Securities subject to a Repayment Event will be cancelled in accordance with the applicable provisions of the Indenture and, except for any obligation arising under this Section 8(a)(ii) in respect thereof, will be disregarded and no longer outstanding for all purposes hereunder (including for the calculation of any amount in respect of any termination or cancellation of the Transaction under the Agreement, the Equity Definitions or otherwise). “Repayment Event” means the occurrence of (i) any repurchase by Counterparty or any of its subsidiaries of Convertible Securities (whether in connection with or as a result of a “fundamental change”, howsoever defined, or for any other reason), (ii) any Convertible Securities are delivered to Counterparty or any of its subsidiaries in exchange for delivery of any property or assets of such party (howsoever described), (iii) the repayment of any principal of any of the Convertible Securities prior to the final maturity date of the Convertible Securities (for any reason other than as a result of an acceleration of the Convertible Securities that results in an Additional Termination Event pursuant to the preceding Section 8(a)(i)), or (iv) any Convertible

 

16

 

Securities are exchanged by or for the benefit of the holders thereof for any other securities of Counterparty or any of its subsidiaries (or any other property, or any combination thereof) pursuant to any exchange offer or similar transaction. For the avoidance of doubt, any conversion of Convertible Securities pursuant to the terms of the Indenture shall not constitute a Repayment Event.

 

(b)           Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.  If Dealer shall owe Counterparty any amount pursuant to “Consequences of Merger Events” above or Sections 12.6, 12.7 or 12.9 of the Equity Definitions or pursuant to Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Counterparty shall have the right, in its sole discretion, to require Dealer to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M. New York City time on the relevant merger date, Announcement Date, Early Termination Date or  date of cancellation or termination in respect of another Extraordinary Event, as applicable (“Notice of Share Termination”); provided that if Counterparty does not elect to require Dealer to satisfy its Payment Obligation by the Share Termination Alternative, Dealer shall have the right, in its sole discretion, to elect to satisfy its Payment Obligation by the Share Termination Alternative, notwithstanding Counterparty’s failure to elect or election to the contrary; and provided further that Counterparty shall not have the right to so elect (but, for the avoidance of doubt, Dealer shall have the right to so elect) in the event (i) of an Insolvency, a Nationalization or a Merger Event, in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash,  (ii) of an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party or an Extraordinary Event, which Event of Default, Termination Event or Extraordinary Event resulted from an event or events within Counterparty’s control. Counterparty shall be deemed to remake the representation set forth in Section 7(a)(i) as of the date it makes such election.  Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the relevant merger date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of another Extraordinary Event, as applicable:

 

	
Share Termination Alternative:
    	
 
    	
If applicable, means that Dealer shall deliver to   Counterparty the Share Termination Delivery Property on the date on which the   Payment Obligation would otherwise be due pursuant to “Consequences of Merger   Events” above, Section 12.7 or 12.9 of the Equity Definitions or   Section 6(d)(ii) of the Agreement, as applicable, or such later   date or dates as the Calculation Agent may reasonably determine (the “Share Termination Payment Date”), in satisfaction of the   Payment Obligation.
    
	
 
    	
 
    	
 
    
	
Share Termination Delivery Property:
    	
 
    	
A number of Share Termination Delivery Units, as calculated   by the Calculation Agent, equal to the Payment Obligation divided by the   Share Termination Unit Price. The Calculation Agent shall adjust the Share   Termination Delivery Property by replacing any fractional portion of the   aggregate amount of a security therein with an amount of cash equal to the   value of such fractional security based on the values used to calculate the   Share Termination Unit Price.
    
	
 
    	
 
    	
 
    
	
Share Termination Unit Price:
    	
 
    	
The value of property contained in one Share   Termination Delivery Unit on the date such Share Termination Delivery Units   are to be delivered as Share Termination Delivery Property, as determined by   the Calculation Agent in its discretion by commercially reasonable means and   notified by the Calculation Agent to Dealer.
    
	
 
    	
 
    	
 
    
	
Share Termination Delivery Unit:
    	
 
    	
In the case of a Termination Event, Event of   Default, Delisting or Additional Disruption Event, one Share or, in the case   of an Insolvency, Nationalization or Merger Event, one Share or a unit   consisting of the number or amount of each type of property received by a   holder of one Share (without consideration of any requirement to pay cash or   other consideration in lieu of fractional amounts of any securities) in such   Insolvency, Nationalization or Merger Event, as applicable. If such   Insolvency, Nationalization or Merger Event involves a choice of   consideration to be received by holders, such holder shall be deemed to have   elected to receive the maximum possible amount of cash.
    
	
 
    	
 
    	
 
    
	
Failure to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Other applicable provisions:
    	
 
    	
If Share Termination Alternative is applicable, the   provisions of Sections 1.27, 9.8,
    

 

17

 

	
 
    	
 
    	
9.9 and 9.11 (except that the Representation and Agreement   contained in Section 9.11 of the Equity Definitions shall be modified by   excluding any representations therein relating to restrictions, obligations,   limitations or requirements under applicable securities laws arising as a   result of the fact that Counterparty is the issuer of the Shares or any   portion of the Share Termination Delivery Units) of the Equity Definitions   will be applicable as if “Physical Settlement” applied to the Transaction,   except that all references to “Shares” shall be read as references to “Share   Termination Delivery Units.”
    

 

(c)           Disposition of Hedge Shares.  Counterparty hereby agrees that if, in the good faith  reasonable judgment of Dealer, any Shares (the “Hedge Shares”) acquired by Dealer or any of its affiliates (Dealer and its affiliates collectively for purposes of this Section 8(c) only, “Dealer”) for the purpose of hedging its obligations pursuant to the Transaction cannot be sold in the public market by Dealer without registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Dealer to sell the Hedge Shares in a registered offering, make available to Dealer an effective registration statement under the Securities Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in form and substance satisfactory to Dealer, substantially in the form of an underwriting agreement for a registered offering of similar size, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities, of similar size (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities of similar size and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities of similar size; provided, however, that if Dealer, in its sole reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this Section 8(c) shall apply at the election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities of similar size, in form and substance reasonably satisfactory to Dealer, including customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such other documentation as is customary for private placements agreements, all reasonably acceptable to Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in its commercially reasonable judgment, to compensate Dealer for any discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP Price on such Exchange Business Days, and in the amounts as may be commercially reasonably requested by Dealer.  “VWAP Price” means, on any Exchange Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg Screen SUPN <Equity> VWAP (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange Business Day (or if such volume-weighted average price is unavailable or is manifestly incorrect, the market value of one Share on such Exchange Business Day, as determined by the Calculation Agent using a volume-weighted method).

 

(d)           Amendment to Equity Definitions.  The following amendment shall be made to the Equity Definitions:

 

Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from the fourth line thereof the word “or” after the word “official” and inserting a comma therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events specified in Section 5(a)(vii) (1) through (9) of the ISDA 2002 Master Agreement with respect to that Issuer.”

 

(e)           Repurchase and Conversion Rate Adjustment Notices.  Counterparty shall, on any day on which Counterparty effects any repurchase of Shares or consummates or otherwise executes or engages in any transaction or event (a “Conversion Rate Adjustment Event”) that would reasonably be expected to lead to an increase in the Conversion Rate (as such term is defined in the Indenture), give Dealer a written notice of such repurchase or Conversion Rate Adjustment Event (a “Repurchase Notice”) if, following such repurchase or Conversion Rate Adjustment Event, the Notice Percentage as determined on the date of such Repurchase Notice is (i) equal to or greater than 4.5% (in the case of the first such Repurchase Notice) or (ii) greater by 0.5%  than the Notice Percentage included in the immediately preceding Repurchase Notice, and, if such repurchase or Conversion Rate Adjustment Event, or the intention to effect the same, would constitute material non-public information with respect to Counterparty or the Shares,

 

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Counterparty shall make public disclosure thereof at or prior to delivery of such Repurchase Notice.  The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of which is the Number of Shares plus the number of Shares underlying any other call options sold by Dealer to Counterparty and the denominator of which is the number of Shares outstanding on such day.  In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the day and in the manner specified in this Section 8(e) then Counterparty agrees to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party may become subject under applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure.  If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Counterparty will reimburse any Indemnified Party for all expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with the investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Counterparty.  This indemnity shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Dealer.

 

(f)            Transfer and Assignment.  Either party may transfer any of its rights or obligations under the Transaction with the prior written consent of the non-transferring party, such consent not to be unreasonably withheld or delayed.  For the avoidance of doubt, Dealer may condition its consent on any of the following, without limitation: (i) the receipt by Dealer of opinions and documents reasonably satisfactory to Dealer in connection with such assignment, (ii) such assignment being effected on terms reasonably satisfactory to Dealer with respect to any legal and regulatory requirements relevant to Dealer, (iii) Counterparty continuing to be obligated to provide notices hereunder relating to the Convertible Securities and continuing to be obligated with respect to “Disposition of Hedge Shares” and “Repurchase and Conversion Rate Adjustment Notices” above, (iv) payment by Counterparty of all reasonable costs and expenses, including reasonable counsel fees, incurred by Dealer in connection with such assignment, (v) Dealer not being obliged, as a result of such assignment, to pay the assignee on any payment date, an amount greater than Dealer would have been required to pay in the absence of such assignment, (vi) no Event of Default, Potential Event of Default or Termination Event existing or occurring as a result of such assignment, (vii) the assignee being a United States person (as defined in the Code (as defined below)) and (viii) Counterparty causing the transferee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested by Dealer to permit Dealer to determine that the results described in clauses (v) and (vi) will not occur upon or after such transfer.  In addition, Dealer may transfer or assign without any consent of Counterparty its rights and obligations hereunder and under the Agreement, in whole or in part, to any affiliate of Dealer (1) that has a long-term issuer rating that is equal to or better than Dealer’s credit rating at the time of such transfer or assignment or (2) whose obligations hereunder will be fully and unconditionally guaranteed, pursuant to the terms of a customary guarantee in a form used by Dealer generally for similar transactions, by Dealer or Deutsche Bank AG; provided that it shall be a condition to a transfer or assignment by Dealer without Counterparty’s consent that (x) as of the date of such transfer or assignment, and giving effect thereto, Counterparty will not be required (or, as determined by Dealer in good faith, reasonably expected) to pay the transferee, assignee or Dealer on any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount that Counterparty would have been required to pay to Dealer in the absence of such transfer or assignment, (y) as of the date of such transfer or assignment, and giving effect thereto, the transferee or assignee will not be required to withhold or deduct on account of Tax from any payments under the Agreement or will be required to gross up for such Tax under Section 2(d)(i)(4) of the Agreement and (z) no Event of Default, Potential Event of Default or Termination Event existing or occurring as a result of such assignment or transfer.  At any time at which any Excess Ownership Position exists, if Dealer, in its discretion, is unable to effect a transfer or assignment to a third party in accordance with the requirements set forth above after using its commercially reasonable efforts on pricing terms and within a time period reasonably acceptable to Dealer such that an Excess Ownership Position no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership Position no longer exists. In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section 8(b) of this Confirmation as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be the sole Affected Party with respect to

 

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such partial termination and (iii) such portion of the Transaction shall be the only Terminated Transaction. “Excess Ownership Position” means any of the following: (i) the Equity Percentage exceeds 8.0%, (ii) Dealer or any “affiliate” or “associate” of Dealer would own in excess of 14.0% of the outstanding Shares for purposes of Section 203 of the Delaware General Corporation Law or (iii) Dealer, Dealer Group (as defined below) or any person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under any federal, state or local (including non-U.S.) laws, regulations, regulatory orders or organizational documents or contracts of Counterparty that are, in each case, applicable to ownership of Shares (“Applicable Laws”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval by a local, state, federal or non-U.S. regulator) of a Dealer Person, or could result in an adverse effect on a Dealer Person, under Applicable Laws, as determined by Dealer in its reasonable discretion, and with respect to which such requirements have not been met or the relevant approval has not been received or that would give rise to any consequences under the constitutive documents of Counterparty or any contract or agreement to which Counterparty is a party, in each case minus (y) 1% of the number of Shares outstanding on the date of determination.  The “Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates or any other person subject to aggregation with Dealer, for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act, or any “group” (within the meaning of Section 13) of which Dealer is or may be deemed to be a part (Dealer and any such affiliates, persons and groups, collectively, “Dealer Group”), beneficially owns (within the meaning of Section 13 of the Exchange Act), without duplication, on such day (or, to the extent that, as a result of a change in law, regulation or interpretation after the date hereof, the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such number) and (B) the denominator of which is the number of Shares outstanding on such day.

 

(g)           Staggered Settlement.  Dealer may, by notice to Counterparty on or prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:

 

(i)            in such notice, Dealer will specify to Counterparty the related Staggered Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but not prior to the beginning of the related “Observation Period”, as defined in the Indenture) or delivery times and how it will allocate the Shares it is required to deliver under “Delivery Obligation” (above) among the Staggered Settlement Dates or delivery times; and

 

(ii)           the aggregate number of Shares that Dealer will deliver to Counterparty hereunder on all such Staggered Settlement Dates and delivery times will equal the number of Shares that Dealer would otherwise be required to deliver on such Nominal Settlement Date.

 

(h)           Right to Extend.  Dealer may postpone or add, in whole or, other than in the event Dealer determines in good faith that such extension or addition resulted solely pursuant to the circumstances set forth in clause (ii)(y) below and solely with respect to voluntarily adopted policies and procedures, in part, any Exercise Date or Settlement Date or any other date of valuation or delivery by Dealer, with respect to some or all of the relevant Options (in which event the Calculation Agent shall make appropriate adjustments in a commercially reasonable manner to the Delivery Obligation), if Dealer determines, in its good faith, reasonable discretion (based, in the case of clause (ii) below, on the advice of counsel), that such extension is reasonably necessary or appropriate (i) to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions in the cash market, the stock loan market or any other relevant market (but only if Dealer determines that there is a material decrease in liquidity relative to Dealer’s expectations as of the Trade Date) or (ii) to enable Dealer to effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity hereunder in order to maintain, establish or unwind a commercially reasonable Hedge Position in connection with the Transaction, in a manner that would, if Dealer were Counterparty or an affiliated purchaser of Counterparty, be in compliance (x) with applicable legal, regulatory or self-regulatory requirements, or (y) with related policies and procedures applicable to Dealer (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer) provided that such policies and procedures have been adopted by Dealer in good faith and are generally applicable in similar situations and applied in a non-discriminatory manner.

 

(i)            Adjustments.  For the avoidance of doubt, whenever the Calculation Agent is called upon to make an adjustment pursuant to the terms of this Confirmation or the Definitions to take into account the effect of an event, the Calculation Agent shall make such adjustment by reference to the effect of such event on the Hedging Party, assuming

 

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that the Hedging Party maintains a commercially reasonable hedge position, and taking into account the requirements under “Calculation Agent” above.

 

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

 

(k)           Designation by Dealer.  Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations.  Dealer shall be discharged of its obligations to Counterparty solely to the extent of any such performance.

 

(l)            No Netting and Set-off.  Each party waives any and all rights it may have to set off obligations arising under the Agreement and the Transaction against other obligations between the parties, whether arising under any other agreement, applicable law or otherwise.

 

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

 

(n)           Early Unwind.  In the event the sale by Counterparty of the Option Securities is not consummated with the Initial Purchasers pursuant to the Purchase Agreement (the “Purchase Agreement”) dated as of March 14, 2018  between Counterparty and Dealer, as representative of the Initial Purchasers party thereto (the “Initial Purchaser”) for any reason by the relevant “Date of Delivery” (as defined in the Purchase Agreement) (or such later date as agreed upon by the parties) (such “Date of Delivery” or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”), on the Early Unwind Date, and the Transaction and all of the respective rights and obligations of Dealer and Counterparty thereunder shall be cancelled and terminated.   Following such termination and cancellation, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of either party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date.  Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.

 

(o)           Wall Street Transparency and Accountability Act of 2010.  The parties hereby agree that none of (v) Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), (w) any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, (x) the enactment of WSTAA or any regulation under the WSTAA, (y) any requirement under WSTAA nor (z) an amendment made by WSTAA, shall limit or otherwise impair either party’s rights to terminate, renegotiate, modify, amend or supplement this Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under this Confirmation, the Equity Definitions incorporated herein, or the Agreement (including, but not limited to, rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, an Excess Ownership Position or Illegality (as defined in the Agreement)).

 

(p)           Tax Matters

 

(i)            Withholding Tax imposed on payments to non-US counterparties under the United States Foreign Account Tax Compliance Act.  “Tax” and “Indemnifiable Tax”, each as defined in Section 14 of the Agreement, shall not include any U.S. federal withholding tax imposed or collected pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (a “FATCA

 

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Withholding Tax”). For the avoidance of doubt, a FATCA Withholding Tax is a Tax the deduction or withholding of which is required by applicable law for the purposes of Section 2(d) of the Agreement.

 

(ii)           HIRE Act.  “Tax” and “Indemnifiable Tax”, each as defined in Section 14 of the Agreement, shall not include any tax imposed on payments treated as dividends from sources within the United States under Section 871(m) of the Code or any regulations issued thereunder.

 

(iii)          Tax documentation. Counterparty shall provide to Dealer a valid U.S. Internal Revenue Service Form W-9, or any successor thereto, (i) on or before the date of execution of this Confirmation and (ii) promptly upon learning that any such tax form previously provided by Counterparty has become obsolete or incorrect.  Additionally, Counterparty shall, promptly upon request by Dealer, provide such other tax forms and documents requested by Dealer.

 

(iv)          Tax Representations.  Counterparty is a corporation for U.S. federal income tax purposes and is organized under the laws of the State of Delaware.  Counterparty is a “U.S. person” (as that term is used in section 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for U.S. federal income tax purposes and an exempt recipient under Treasury Regulation Section 1.6049-4(c)(1)(ii).

 

(q)           Waiver of Trial by Jury.  EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

 

(r)            Governing Law; Jurisdiction.  THIS CONFIRMATION AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.  THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

 

(s)            Notice of Certain Other Events. Counterparty covenants and agrees that:

 

(i)                                     promptly following the public announcement of the results of any election by the holders of Shares with respect to the consideration due upon consummation of any Merger Event, Counterparty shall give Dealer written notice of (x) the weighted average of the types and amounts of consideration that holders of Shares have elected to receive upon consummation of such Merger Event or (y) if no holders of Shares affirmatively make such election, the types and amounts of consideration actually received by holders of Shares (the date of such notification, the “Consideration Notification Date”); provided that in no event shall the Consideration Notification Date be later than the date on which such Merger Event is consummated; and

 

(ii)                                  (A) Counterparty shall give Dealer commercially reasonable advance (but in no event less than one Exchange Business Day) written notice of the section or sections of the Indenture and, if applicable, the formula therein, pursuant to which any adjustment will be made to the Convertible Securities in connection with any Adjustment Event (other than in respect of the Dilution Adjustment Provision set forth in Section 5.05(A)(ii)of the Indenture) or Merger Event and (B) promptly following any such adjustment, Counterparty shall give Dealer written notice of the details of such adjustment.

 

(t)            [Reserved].

 

(u)           ISDA 2013 EMIR Protocol. The parties agree that the terms of the 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol published by ISDA on July 19, 2013 (“Protocol”) apply to the Agreement as if the parties had adhered to the Protocol without amendment.  In respect of the Attachment to the

 

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Protocol, (i) the definition of “Adherence Letter” shall be deemed to be deleted and references to “Adherence Letter” shall be deemed to be to this Section 8(u) (and references to “such party’s Adherence Letter” and “its Adherence Letter” shall be read accordingly), (ii) references to “adheres to the Protocol” shall be deemed to be “enters into this Agreement”, (iii) references to “Protocol Covered Agreement” shall be deemed to be references to this Agreement (and each “Protocol Covered Agreement” shall be read accordingly), and (iv) references to “Implementation Date” shall be deemed to be references to the date of this Agreement.  For the purposes of this Section 8(u):

 

(a)           Dealer is a Portfolio Data Sending Entity and Counterparty is a Portfolio Data Receiving Entity;

 

(b)                                 Dealer and Counterparty may use a Third Party Service Provider, and each of Dealer and Counterparty consents to such use including the communication of the relevant data in relation to Dealer and Counterparty to such Third Party Service Provider for the purposes of the reconciliation services provided by such entity.

 

(c)                                  The Local Business Days for such purposes in relation to Dealer are New York, London, Frankfurt, Tokyo and Singapore and in relation to Counterparty are New York;

 

(d)                                 The provisions in this paragraph shall survive the termination of this Transaction.

 

(e)                                  The following are the applicable email addresses.

 

Portfolio Data:                                                                                                                                                               Dealer: collateral.disputes@db.com

 

Counterparty: gpatrick@supernus.com

 

Notice of discrepancy:                                                                                                                      Dealer: collateral.disputes@db.com

 

Counterparty: gpatrick@supernus.com

 

Dispute Notice:                                                                                                                                                             Dealer: collateral.disputes@db.com

 

Counterparty: gpatrick@supernus.com

 

(v)                                 NFC Representation Protocol.

 

(i)             the parties agree that the provisions set out in the Attachment to the ISDA 2013 EMIR NFC Representation Protocol published by ISDA on March 8, 2013 (the “NFC Representation Protocol”) shall apply to the Agreement as if each party were an Adhering Party under the terms of the NFC Representation Protocol.  In respect of the Attachment to the Protocol, (i) the definition of “Adherence Letter” shall be deemed to be deleted and references to “Adherence Letter” shall be deemed to be to this Section 2 (and references to “the relevant Adherence Letter” and “its Adherence Letter” shall be read accordingly), (ii) references to “adheres to the Protocol” shall be deemed to be “enters into this Agreement”, (iii) references to “Covered Master Agreement” shall be deemed to be references to this Agreement (and each “Covered Master Agreement” shall be read accordingly), and (iv) references to “Implementation Date” shall be deemed to be references to the date of this Agreement; and

 

(ii)          Counterparty confirms that it enters into this Agreement as a party making the NFC Representation (as such term is defined in the NFC Representation Protocol).  Counterparty shall promptly notify Dealer of any change to its status as a party making the NFC Representation.

 

(w)                               Transaction Reporting — Consent for Disclosure of Information. Notwithstanding anything to the contrary herein or in the Agreement or any non-disclosure, confidentiality or other agreements entered into between the parties from time to time, each party hereby consents to the Disclosure of information (the “Reporting Consent”):

 

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1.                                      to the extent required by, or necessary in order to comply with, any applicable law, rule or regulation which mandates Disclosure of transaction and similar information or to the extent required by, or necessary in order to comply with, any order, request or directive regarding Disclosure of transaction and similar information issued by any relevant authority or body or agency (“Reporting Requirements”); or

 

2.                                      to and between the other party’s head office, branches or affiliates; to any person, agent, third party or entity who provides services to such other party or its head office, branches or affiliates; to a Market; or to any trade data repository or any systems or services operated by any trade repository or Market, in each case, in connection with such Reporting Requirements.

 

“Disclosure” means disclosure, reporting, retention, or any action similar or analogous to any of the aforementioned.

 

“Market” means any exchange, regulated market, clearing house, central clearing counterparty or multilateral trading facility.

 

Disclosures made pursuant to this Reporting Consent may include, without limitation, Disclosure of information relating to disputes over transactions between the parties, a party’s identity, and certain transaction and pricing data and may result in such information becoming available to the public or recipients in a jurisdiction which may have a different level of protection for personal data from that of the relevant party’s home jurisdiction.

 

This Reporting Consent shall be deemed to constitute an agreement between the parties with respect to Disclosure in general and shall survive the termination of this Confirmation. No amendment to or termination of this Reporting Consent shall be effective unless such amendment or termination is made in writing between the parties and specifically refers to this Reporting Consent.

 

(x)           Method of Delivery. Whenever delivery of funds or other assets is required hereunder by or to Counterparty, such delivery shall be effected through DBSI.  In addition, all notices, demands and communications of any kind relating to the Transaction between Deutsche and Counterparty shall be transmitted exclusively through DBSI.

 

(y)           Resolution Stay Protocol. Subject to the below, the provisions set out in the Attachment to the ISDA 2015 Universal Resolution Stay Protocol as published by the International Swaps and Derivatives Association on 4 November 2015 (“Protocol”), and any additional Country Annex that has been published from time to time and to which Counterparty has adhered  are, mutadis mutandis, incorporated by reference, into this Agreement as though such provisions and definitions were set out in full herein, with any such conforming changes as are necessary to deal with what would otherwise be inappropriate or incorrect cross-references. References in the Protocol:

 

(1) the “Adhering Party” shall be deemed to be references to the parties to this Agreement;

 

(2) the “Adherence Letter” shall be deemed to be references to this Agreement;

 

(3) the “Implementation Date” shall be deemed to be references to the date of this Agreement; and

 

(4) this Agreement shall be deemed a “Covered Agreement.”

 

[Signature Page Follows]

 

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Counterparty hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Counterparty with respect to the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Dealer.

 

Dealer is authorised for the conduct of certain activities by the Prudential Regulation Authority. It is subject to limited regulation by the Financial Conduct Authority and by the Prudential Regulation Authority.

 

	
DEUTSCHE BANK AG, LONDON BRANCH
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Lars Kestner 
    	
 
    	
 
    
	
Name:
    	
Lars Kestner 
    	
 
    
	
Title:
    	
Attorney in Fact
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ John Arnone 
    	
 
    	
 
    
	
Name:
    	
John Arnone
    	
 
    
	
Title:
    	
Attorney in Fact
    	
 
    
	
 
    	
 
    
	
DEUTSCHE BANK SECURITIES INC.,
    	
 
    
	
acting solely as Agent   in connection with the Transaction
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Lars Kestner 
    	
 
    	
 
    
	
Name:
    	
Lars Kestner 
    	
 
    
	
Title:
    	
Managing Director
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ John Arnone 
    	
 
    	
 
    
	
Name:
    	
John Arnone
    	
 
    
	
Title:
    	
Managing Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Agreed and Accepted By:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SUPERNUS   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jack A. Khattar
    
	
 
    	
 
    	
Name:
    	
Jack A. Khattar
    
	
 
    	
 
    	
Title:
    	
President & CEO
    

 

 

Chairman of the Supervisory Board: Paul Achleitner. Management Board: John Cryan (Chairman), Marcus Schenck, Christian Sewing, Kimberly Hammonds, Stuart Lewis, Sylvie Matherat, Nicolas Moreau, Garth Ritchie, Karl von Rohr, Werner Steinmüller.

 

Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank and the BaFin, Germany’s Federal Financial Supervisory Authority) and, in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the European Central Bank and by the BaFin, and is subject to limited regulation in the United Kingdom by the Financial Conduct Authority and the Prudential Regulation Authority.

 

Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany, Local Court of Frankfurt am Main, HRB No. 30 000; Branch Registration in England and Wales BR000005 and Registered Address: Winchester House, 1 Great Winchester Street, London EC2N 2DB. Deutsche Bank AG, London Branch is a member of the London Stock Exchange. (Details about the extent of our authorisation and regulation in the United Kingdom are available on request or from www.db.com/en/content/eu_disclosures.html)

 

[Signature Page to Additional Bond Hedge Confirmation]

 

25

 

Annex A

 

Premium:              USD 6,058,500.

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