Document:

Exhibit 10.3

 

Pursuant to 17 CFR 240.24b-2, confidential information (indicated by [***]) has been omitted from Annex A and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

 

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
    

 

	
DATE:
    	
 
    	
October 11,   2011
    
	
 
    	
 
    	
 
    
	
TO:
    	
 
    	
United   Therapeutics Corporation
    
	
ATTENTION:
    	
 
    	
John   Ferrari, Chief Financial Officer and Treasurer
    
	
TELEPHONE:
    	
 
    	
(301) 608-9292
    
	
FACSIMILE:
    	
 
    	
(301) 608-3049
    
	
 
    	
 
    	
 
    
	
FROM:
    	
 
    	
Deutsche Bank AG, London Branch
    
	
TELEPHONE:
    	
 
    	
44   20 7545 8193
    
	
FACSIMILE:
    	
 
    	
44   11 3336 2009
    
	
 
    	
 
    	
 
    
	
SUBJECT:
    	
 
    	
Equity   Derivatives Confirmation
    
	
 
    	
 
    	
 
    
	
REFERENCE   NUMBER(S):
    	
 
    	
457098
    

 

The purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between Deutsche Bank AG, London Branch (“Deutsche”) and United Therapeutics Corporation (“Counterparty”) on the Trade Date specified below (the “Transaction”).  This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  This Confirmation constitutes the entire agreement and understanding of the parties with respect to the subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and oral communications with respect thereto.

 

DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  DEUTSCHE BANK SECURITIES INC. (“AGENT”) 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 RELATING TO THE TRANSACTION BETWEEN DEUTSCHE AND COUNTERPARTY SHALL BE TRANSMITTED EXCLUSIVELY THROUGH AGENT.  DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

 

	
Chairman   of the Supervisory Board: Clemens Börsig Management Board: Josef Ackermann   (Chairman), Hugo Bänziger, Jürgen Fitschen, Anshuman Jain, Stefan Krause,   Hermann-Josef Lamberti, Rainer Neske
    	
 
    	
Deutsche   Bank AG is authorised under German Banking Law (competent authority: BaFin –   Federal Financial Supervising Authority) and regulated by the Financial   Services Authority for the conduct of UK business; a member of the London   Stock Exchange. Deutsche Bank AG is a joint stock corporation with limited   liability incorporated in the Federal Republic of Germany HRB No. 30 000   District Court of Frankfurt am Main; Branch Registration in England and Wales   BR000005; Registered address: Winchester House, 1 Great Winchester Street,   London EC2N 2DB. Deutsche Bank Group online: http://www.deutsche-bank.com
    

 

 

The definitions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation.  In the event of any inconsistency between the Equity Definitions and the terms of this Confirmation, the terms of this Confirmation shall govern.  For the purposes of the Equity Definitions, each reference herein to a Note Hedging Unit shall be deemed to be a reference to a Call or an Option, as context requires.

 

This Confirmation evidences a complete and binding agreement between Deutsche and Counterparty as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall supplement, form a part of, and be subject to an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement (the “ISDA Form”) as if Deutsche and Counterparty had executed an agreement in such form (without any Schedule but with the elections set forth in this Confirmation).  For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

 

2.              The Transaction shall be considered a Share Option Transaction for purposes of the Equity Definitions, and shall have the following terms:

 

	
General:
    	
 
    
	
 
    	
 
    
	
Trade   Date:
    	
October 11,   2011.
    
	
 
    	
 
    
	
Effective   Date:
    	
The   closing date for the initial issuance of the Convertible Notes.
    
	
 
    	
 
    
	
Transaction   Style:
    	
As   described below under “Procedure for Exercise”.
    
	
 
    	
 
    
	
Transaction   Type: 
    	
Note   Hedging Units.
    
	
 
    	
 
    
	
Seller:
    	
Deutsche.   
    
	
 
    	
 
    
	
Buyer:
    	
Counterparty.
    
	
 
    	
 
    
	
Shares:
    	
The   common stock, par value USD 0.01 per share, of Counterparty. 
    
	
 
    	
 
    
	
Convertible   Notes:
    	
1.0%   Senior Convertible Notes of Counterparty due September 15, 2016, offered   pursuant to the Offering Memorandum dated October 11, 2011 and issued   pursuant to the indenture to be dated on or about October 17, 2011, by   and between Counterparty and The Bank of New York Mellon Trust Company, N.A.,   as trustee (as may be amended, modified or supplemented from time to time,   but only if such amendment, modification or supplement is consented to by   Deutsche in writing, the “Indenture”).  Counterparty shall provide Deutsche with a   copy of the executed Indenture on the Effective Date.  In the event of any inconsistency between   the terms defined in the Indenture or defined in the Offering Memorandum and   this Confirmation, this Confirmation shall govern.  For the avoidance of doubt, references   herein to provisions of the Indenture are based on the description of the   Convertible Notes set forth in the Offering Memorandum.  If any relevant provisions of the Indenture   differ in any material respect from those described in the Offering   Memorandum or if any relevant sections of the Indenture are thereafter   changed or added following execution of this Confirmation, the parties will amend   this Confirmation in good faith to preserve the economic intent of the   parties.
    

 

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Number   of Note Hedging Units: 
    	
250,000
    
	
 
    	
 
    
	
Note   Hedging Unit Entitlement: 
    	
USD1,000   divided by the Strike Price.  Notwithstanding   anything to the contrary herein or in the Agreement (including without   limitation the provisions of Calculation Agent Adjustment), in no event shall   the Note Hedging Unit Entitlement at any time be greater than the “Conversion   Rate” (as such term is defined in the Indenture, as described in the Offering   Memorandum under “Description of Notes — Conversion of Notes — General) at   such time.
    
	
 
    	
 
    
	
Strike   Price: 
    	
USD   47.69
    
	
 
    	
 
    
	
Premium:
    	
As   set forth in Annex A to this Confirmation.
    
	
 
    	
 
    
	
Premium   Payment Date: 
    	
The   Effective Date.
    
	
 
    	
 
    
	
Exchange:   
    	
The   NASDAQ Global Select Market.
    
	
 
    	
 
    
	
Related   Exchanges: 
    	
All   Exchanges.
    
	
 
    	
 
    
	
Calculation   Agent: 
    	
Deutsche.  The Calculation Agent shall, upon   reasonable written request by Counterparty, provide promptly a written explanation   (in a commonly used file format for the storage and manipulation of financial   data) displaying in reasonable detail the basis of any calculation or   adjustment made by it including, where applicable, a description of the   methodology and data applied, it being understood that the Calculation Agent   shall not be obligated to disclose any proprietary models used by it for such   calculation or adjustment.
    
	
 
    	
 
    
	
Procedure   for Exercise: 
    	
 
    
	
 
    	
 
    
	
Potential   Exercise Dates:
    	
Each   Conversion Date.
    
	
 
    	
 
    
	
Conversion   Date:
    	
Each   “Conversion Date” as defined in the Indenture, as described in the Offering   Memorandum under “Description of Notes — Conversion of Notes — General” for   Relevant Convertible Notes (as defined below).
    
	
 
    	
 
    
	
Required   Exercise on Conversion Dates:
    	
On   each Conversion Date, a number of Note Hedging Units equal to the number of   Convertible Notes in denominations of USD 1,000 principal amount submitted   for conversion in respect of such Conversion Date in accordance with the   terms of the Indenture (such Convertible Notes, the “Relevant   Convertible Notes” for such Conversion Date)  shall   be exercised automatically, subject to “Notice of Exercise” below.  
    
	
 
    	
 
    
	
Expiration   Date:
    	
September 15,   2016
    
	
 
    	
 
    
	
Multiple   Exercise:
    	
Applicable,   as provided under “Required Exercise on Conversion Dates”.
    
	
 
    	
 
    
	
Automatic   Exercise: 
    	
As   provided under “Required Exercise on Conversion Dates”.
    

 

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Notice   of Exercise:
    	
Notwithstanding   anything to the contrary in the Equity Definitions, in order to exercise any   Note Hedging Units, Counterparty must notify Deutsche in writing (and use   reasonable efforts to confirm receipt by telephone to either Andrew Yaeger   (telephone: (212) 250-2717) or Faiz Khan (telephone: (212) 250-0668) or to   such other person as Deutsche may indicate in writing to Counterparty) prior   to 5:00 PM, New York City time, on the day that is two Scheduled Trading Days   prior to the first day of the “Conversion Period”, as defined in the   Indenture, as described in the Offering Memorandum under “Description of   Notes — Conversion of Notes — Settlement upon Conversion”, relating to the   Relevant Convertible Notes converted on the Conversion Date relating to the   relevant Exercise Date (the “Notice   Deadline”) of (i) the number of Note Hedging Units being   exercised on such Exercise Date, (ii) the scheduled commencement date of   the “Conversion Period” and (iii) the scheduled settlement date under   the Indenture for the Relevant    Convertible Notes converted on the Conversion Date corresponding to   such Exercise Date; provided   that in respect of Relevant Convertible Notes with a Conversion Date during   the period (the “Final Conversion Period”)   beginning on, and including the 25th “Scheduled Trading Day”, as defined in the   Indenture (as described in the Offering Memorandum under “Description of   Notes — Conversion of Notes — Conversion upon Satisfaction of Market Price   Condition”), prior to the “Maturity Date”, as provided in the Indenture (as   described in the first paragraph under “Description of Notes — General”), for   the Convertible Notes and ending on the close of business on the second “Scheduled   Trading Day” immediately preceding the “Maturity Date”, the Notice Deadline   shall be 5:00 PM, New York City time, on the “Scheduled Trading Day” immediately   preceding the “Maturity Date” and the contents of such notice shall be as   described in clause (i) above; provided further   that notwithstanding the foregoing and except in respect of a Conversion Date   during the Final Conversion Period, such notice (and the related exercise of   Note Hedging Units) shall be effective if given after the Notice Deadline,   but prior to 4:00 PM New York City time, on the fifth Exchange Business Day   following the Notice Deadline, in which event the Calculation Agent shall have   the right to adjust the Convertible Obligation as appropriate to reflect the   additional costs (including, but not limited to, hedging mismatches and   market losses) and expenses incurred by Deutsche in connection with its   hedging activities (including the unwinding of any hedge position) as a   result of Deutsche not having received such notice on or prior to the Notice   Deadline.
    
	
 
    	
 
    
	
Settlement   Terms: 
    	
 
    
	
 
    	
 
    
	
Net   Share Settlement: 
    	
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 any Exercise Date   occurring on a Conversion Date, Deutsche shall deliver to Counterparty, on   the related Settlement Date, the Settlement Amount.    For the avoidance of doubt, to the extent   Deutsche is obligated to 
    

 

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deliver   Shares hereunder, the provisions of Sections 9.8, 9.9, 9.10, 9.11 and 9.12 of   the Equity Definitions shall be applicable to any such delivery of Shares,   except that all references in such provisions to “Physical Settlement” and   “Physically-settled” shall be read as references to “Net Share Settlement”   and “Net Share Settled”; and provided   that the Representation and Agreement contained in Section 9.11 of the   Equity Definitions shall be modified by excluding any representations therein   relating to restrictions, obligations, limitations or requirements under   applicable securities laws as a result of the fact that Counterparty is the   issuer of the Shares.
    
	
 
    	
 
    
	
Settlement   Amount: 
    	
A   number of Shares equal to the aggregate number of Shares that Counterparty is   obligated to deliver to the holder(s) of the Relevant Convertible Notes   converted on such Conversion Date pursuant to the provisions of the Indenture   described in the Offering Memorandum under “Description of Notes — Conversion   of Notes — Settlement upon Conversion” except that such aggregate number of   Shares shall be determined without taking into consideration any rounding   pursuant to the provisions of the Indenture described in the Offering   Memorandum under “Description of Notes — Conversion of Notes — Settlement   upon Conversion” and shall be rounded down to the nearest whole number and   cash shall be delivered in lieu of fractional Shares, if any, resulting from   such rounding (the “Convertible Obligation”);   provided that such obligation   shall be determined excluding any Shares or cash that Counterparty is   obligated to deliver to holder(s) of the Relevant Convertible Notes as a   result of any adjustments to the “Conversion Rate” for the issuance of   additional Shares or cash as set forth in the provisions of the Indenture   described in the Offering Memorandum under “Description of Notes — Adjustment   to Conversion Rate upon Conversion upon a Make Whole Adjustment Event” (a “Fundamental Change Adjustment”)  or any adjustment to the “Conversion   Price” for any voluntary adjustment pursuant to the provisions of the   Indenture described in the seventh to last paragraph in the Offering   memorandum under “Description of Notes — Conversion of Notes — Conversion   Price Adjustments” (i.e., the paragraph commencing with “To the extent   permitted by law and any applicable rules of the Nasdaq Global Select   Market...”) (a “Discretionary Adjustment”);   provided further that, if such   exercise relates to the conversion of Relevant Convertible Notes in   connection with which holders thereof are entitled to receive additional   Shares or cash pursuant to a Fundamental Change Adjustment, then,   notwithstanding the foregoing, the Settlement Amount shall include such   additional Shares or cash, except that the Settlement Amount shall be capped   so that the value of the Settlement Amount per Note Hedging Unit (with the   value of the Shares included in the Settlement Amount determined by the   Calculation Agent using the volume-weighted average price per share on the   last day of the relevant “Conversion Period”) does not exceed the amount as   determined by the Calculation Agent that would be payable by Seller 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
    

 

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the   Transaction (except that, for purposes of determining such amount (x) the   Number of Note Hedging Units shall be deemed to be equal to the number of   Note Hedging Units exercised on such Exercise Date and (y) such amount   payable will be determined as if the section of the Indenture regarding a   Fundamental Change Adjustment were deleted) was the sole Affected Transaction   and Counterparty was the sole Affected Party (determined without regard to   provisions under “Alternative Calculations   and Payment on Early Termination and on Certain Extraordinary Events”   in this Confirmation).  If Counterparty   is permitted or required to exercise discretion under the terms of the   Indenture with respect to any determination, calculation or adjustment   relevant to conversion of the Convertible Notes including, but not limited   to, the volume-weighted average price of the Shares, Counterparty shall   consult with Deutsche with respect thereto prior to making such   determination, calculation or adjustment.    For the avoidance of doubt, if the “Daily Conversion Value”, as   defined in the Indenture (as described in the Offering Memorandum under   “Description of Notes — Conversion of Notes — Settlement upon Conversion”)   for each of the “Trading Days”, as defined in the Indenture (as described in   the Offering Memorandum under “Description of Notes — Conversion of Notes —   Conversion upon Satisfaction of Market Price Condition”), in the relevant   “Conversion Period” is less than or equal to USD 1,000 divided by   the number of “Trading Days” in the relevant “Conversion Period”, Deutsche   will have no delivery obligation hereunder.
    
	
 
    	
 
    
	
Notice   of Delivery Obligation:
    	
No   later than the Scheduled Trading Day immediately following the last day of   the relevant “Conversion Period” Counterparty shall give Deutsche notice of   the final number of Shares (and cash in lieu of fractional shares) comprising   the Convertible Obligation; provided that,   with respect to any Exercise Date occurring during the Final Conversion   Period, Counterparty may provide Deutsche with a single notice of an   aggregate number of Shares (and cash in lieu of fractional Shares) 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, as set forth above, in any   way). 
    
	
 
    	
 
    
	
Settlement   Date:
    	
In   respect of an Exercise Date occurring on a Conversion Date, the settlement   date for the Shares to be delivered under the Relevant Convertible Notes   under the terms of 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 “Conversion   Period”, as defined in the Indenture (as described in the Offering Memorandum   under “Description of Notes — Conversion of Notes — Settlement Upon   Conversion”), and (ii) the Exchange Business Day immediately following   the date on which Counterparty gives notice to Deutsche of such Settlement   Date prior to 5:00 PM, New York City time. 
    

 

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Settlement   Currency:
    	
USD.
    
	
 
    	
 
    
	
Restricted   Certificated Shares:
    	
Notwithstanding   anything to the contrary in the Equity Definitions, Deutsche may, in whole or   in part, deliver Shares in certificated form representing the Settlement   Amount to Counterparty in lieu of delivery through the Clearance System.
    
	
 
    	
 
    
	
Share   Adjustments:
    	
 
    
	
 
    	
 
    
	
Potential   Adjustment Events:
    	
Notwithstanding   Section 11.2(e) of the Equity Definitions, a “Potential Adjustment   Event” means any occurrence of any event or condition, as set forth in the   provisions of the Indenture described in the Offering Memorandum under “Description   of Notes — Conversion of Notes — Conversion Price Adjustment” (other than a   Discretionary Adjustment) that would result in an adjustment to the Conversion   Price of the Convertible Notes; provided that   in no event shall there be any adjustment hereunder as a result of an   adjustment to the “Conversion Rate” or “Conversion Price” pursuant to a   Fundamental Change Adjustment or a Discretionary Adjustment.
    
	
 
    	
 
    
	
Method   of Adjustment:
    	
Calculation   Agent Adjustment, which means that, notwithstanding Section 11.2(c) of   the Equity Definitions, upon the occurrence of any Potential Adjustment Event   (other than a Fundamental Change Adjustment or a Discretionary Adjustment),   the Calculation Agent shall make an adjustment to any one or more of the   Strike Price, Number of Note Hedging Units, the Note Hedging Unit Entitlement   and any other variable relevant to the exercise, settlement, payment or other   terms of the Transaction corresponding to the analogous adjustments made   pursuant to the terms of the Indenture in respect of such event.
    
	
 
    	
 
    
	
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 the provisions of the   Indenture described in the Offering Memorandum under “Description of Notes —   Conversion of Notes — Adjustment to Conversion Rights upon Certain   Reclassifications, Business Combinations, Asset Sales and Corporate Events”.
    
	
 
    	
 
    
	
Notice   of Merger Consideration:
    	
Upon   the occurrence of a Merger Event that causes the Shares to be converted into   or exchanged for more than a single type of consideration (determined based   in part upon the form of election of the holders of Shares), Counterparty   shall promptly (but in any event prior to the effective date of the Merger   Event) notify the Calculation Agent of the weighted average of the kind and   amounts of consideration to be received by the holders of Shares in any   Merger Event who affirmatively make such an election.
    
	
 
    	
 
    
	
Consequences   of Merger Events:
    	
Notwithstanding   Section 12.2 of the Equity Definitions, upon the occurrence of a Merger   Event, the Calculation Agent shall make the
    

 

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corresponding   adjustment in respect of any adjustment under the Indenture to any one or   more of the nature of the Shares, the Strike Price, the Number of Note   Hedging Units, the Note Hedging Unit Entitlement and any other variable   relevant to the exercise, settlement, payment or other terms of the   Transaction, to the extent an analogous adjustment is made under the   Indenture; provided that such   adjustment shall be made without regard to any adjustment to the Conversion   Rate for the issuance of additional Shares or cash pursuant to a Fundamental   Change Adjustment or an adjustment to the Conversion Price for a   Discretionary Adjustment; and provided   further that if, with respect to a Merger Event, the consideration   for the Shares includes (or, at the option of a holder of Shares, may   include) shares (or depositary receipts with respect to shares) of an entity   or person not organized under the laws of the United States, any State   thereof or the District of Columbia, Cancellation and Payment (Calculation   Agent Determination) shall apply.
    
	
 
    	
 
    
	
Nationalization, Insolvency   and 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 be deemed to be the Exchange.    For the avoidance of doubt, the occurrence of any event that is a   Merger Event and would otherwise have been a Delisting will have the   consequence specified for the relevant Merger Event.
    
	
 
    	
 
    
	
Additional   Disruption Events:
    	
 
    
	
 
    	
 
    
	
Change   in Law:
    	
Applicable;   provided that (x) Section 12.9(a)(ii) of   the Equity Definitions is hereby amended (i) by the replacement of the   word “Shares” with “Hedge Positions”; (ii) by adding the phrase “announcement   or statement of or” immediately after the phrase “due to the promulgation of   or” in the third line thereof and adding the phrase “formal or informal”   before the word “interpretation” in the same line; (iii) immediately   following the word “Transaction” in clause (X) thereof, adding the   phrase “in the manner contemplated by the Hedging Party on the Trade Date   (unless another manner of holding, acquiring or disposing of, as applicable,   Hedge Positions relating to such Transaction that is available to Hedging   Party would be commercially reasonable, as reasonably determined by Hedging   Party, and is not illegal)”; and (iv) by 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) any determination as   to whether (A) the adoption of or change in any applicable law or   regulation (including, without limitation, any tax law) or (B) the   promulgation of or any change in or announcement or statement of the formal   or informal interpretation by any court, tribunal or regulatory authority   with
    

 

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competent   jurisdiction of any applicable law or regulation (including any action taken   by a taxing authority), in each case, constitutes a “Change in Law” shall be   made without regard to Section 739 of the Wall Street Transparency and   Accountability Act of 2010 or any similar legal certainty provision in any   legislation enacted, or rule or regulation promulgated, on or after the   Trade Date and (z) Deutsche may exercise its termination rights with   respect to a “Change in Law” described in clause (Y) of Section 12.9(a)(ii) of   the Equity Definitions only if Deutsche determines, based upon advice of   counsel, that it is generally exercising its right to terminate as a result   of such event with respect to similarly situated counterparties.
    
	
 
    	
 
    
	
Insolvency   Filing:
    	
Applicable
    
	
 
    	
 
    
	
Hedging   Disruption:
    	
Applicable;   provided that Section 12.9(a)(v) of   the Equity Definitions is hereby modified by inserting the following sentence   at the end of such section: “Such inability described in phrases (A) or (B) above   shall not constitute a “Hedging Disruption” if such inability results solely   from the Hedging Party’s creditworthiness or financial position, or from   particular actions or transactions undertaken by the Hedging Party with third   parties unrelated to the hedging of the Transaction.”
    
	
 
    	
 
    
	
Hedging   Party:
    	
Deutsche   for all applicable Additional Disruption Events
    
	
 
    	
 
    
	
Determining   Party:
    	
Deutsche   for all applicable Additional Disruption Events
    
	
 
    	
 
    
	
Acknowledgements:
    	
 
    
	
 
    	
 
    
	
Non-Reliance:
    	
Applicable
    
	
 
    	
 
    
	
Agreements   and Acknowledgements
    	
 
    
	
Regarding   Hedging Activities:
    	
Applicable
    
	
 
    	
 
    
	
Additional   Acknowledgements:
    	
Applicable
    
	
 
    	
 
    
	
Mutual Representations: Each of Deutsche and Counterparty represents and   warrants to, and agrees with, the other party that:

 
    
	
 
    	
(i)                                     Tax   Disclosure.    Notwithstanding anything to the contrary herein, in the Equity   Definitions or in the Agreement, and notwithstanding any express or implied   claims of exclusivity or proprietary rights, the parties (and each of their   employees, representatives or other agents) are authorized to disclose to any   and all persons, beginning immediately upon commencement of their discussions   and 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 by either party to the other relating to such   tax treatment and tax structure.
    
	
 
    	
 
    
	
 
    	
(ii)                                  Commodity Exchange Act.  It is an “eligible   contract participant” within the meaning of the U.S. Commodity Exchange Act,   as amended (the “CEA”).  The Transaction has been subject to   individual negotiation by the parties.    The Transaction has not been executed or traded on a “trading facility”   as defined in the CEA.  It has   entered into the Transaction with the expectation and intent that the 
    
			

 

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Transaction   shall be performed to its termination date.
    
	
 
    	
 
    
	
 
    	
(iii)                               Securities Act.  It is a   “qualified institutional buyer” as defined in Rule 144A under the U.S.   Securities Act of 1933, as amended (the “Securities Act”),   or an “accredited investor” as defined under the Securities Act.
    
	
 
    	
 
    
	
 
    	
(iv)                              Investment Company Act.  It is a   “qualified purchaser” as defined under the U.S. Investment Company Act of   1940, as amended.
    
	
 
    	
 
    
	
 
    	
(v)                                 ERISA.  The assets used in the   Transaction (1) are not assets of any “plan” (as such term is defined in   Section 4975 of the U.S. Internal Revenue Code (the “Code”)) subject to Section 4975 of the Code or any   “employee benefit plan” (as such term is defined in Section 3(3) of   the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) subject to Title I of ERISA, and (2) do not   constitute “plan assets” within the meaning of Department of Labor Regulation   2510.3-101, 29 CFR Section 2510-3-101.
    
	
 
    	
 
    
	
 
    	
(vi)                              Tax Matters.  For purposes of Section 4(a)(i) and   (ii) of the Agreement, (i) Counterparty agrees to deliver to   Deutsche one duly executed and completed United States Internal Revenue Service   Form W-9 (or successor thereto) and (ii) Deutsche agrees to deliver   to Counterparty one duly executed and completed United States Internal   Revenue Form W-8ECI (or successor thereto).
    
	
 
    	
 
    
	
Counterparty Representations: In addition to the representations and warranties in the   Agreement and those contained elsewhere herein, Counterparty represents,   warrants and acknowledges  (on the   Trade Date unless otherwise specified) that:
    
	
 
    
	
 
    	
(i)                                     Counterparty   is not as of the Trade Date, and shall not be after giving effect to the   transactions contemplated hereby, “insolvent” (as such term is defined in 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 a number of Shares equal to the Number of Shares in   compliance with the laws of the jurisdiction of Counterparty’s incorporation   or organization.
    
	
 
    	
 
    
	
 
    	
(ii)                                  Counterparty   has the capacity and authority to invest directly in the Shares underlying   the Transaction and has not entered into the Transaction with the intent to   avoid any regulatory filings.
    
	
 
    	
 
    
	
 
    	
(iii)                               Counterparty’s   financial condition is such that it has no need for liquidity with respect to   its investment in the Transaction and no need to dispose of any portion thereof   to satisfy any existing or contemplated undertaking or indebtedness.
    
	
 
    	
 
    
	
 
    	
(iv)                              Counterparty’s   investments in and liabilities in respect of the Transaction, which it   understands are not readily marketable, are not disproportionate to its net   worth, and Counterparty is able to bear any loss in connection with the   Transaction, including the loss of its entire investment in the Transaction.
    
	
 
    	
 
    
	
 
    	
(v)                                 The   representations and warranties of Counterparty set forth in Section 3 of   the Agreement and Section 1 of the Purchase Agreement dated as of   October 11, 2011 between Counterparty and Deutsche Bank Securities Inc.   as representative of the initial purchaser thereto (the “Purchase Agreement”) are true and correct   and are hereby deemed to be repeated to Deutsche as if set forth herein.
    

 

 

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(vi)          Counterparty understands, agrees and acknowledges that Deutsche has no obligation or intention to register the Transaction under the Securities Act, any state securities law or other applicable federal securities law.

 

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

 

(viii)        Counterparty understands, agrees and acknowledges that no obligations of Deutsche to it hereunder shall be entitled to the benefit of deposit insurance and that such obligations shall not be guaranteed by any affiliate of Deutsche or any governmental agency.

 

(ix)           (A) Counterparty is acting for its own account, and it has made its own independent decisions to enter into the Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary, (B) Counterparty is not relying on any communication (written or oral) of Deutsche or any of its affiliates as investment advice or as a recommendation to enter into the Transaction (it being understood that information and explanations related to the terms and conditions of the Transaction shall not be considered investment advice or a recommendation to enter into the Transaction) and (C) no communication (written or oral) received from Deutsche or any of its affiliates shall be deemed to be an assurance or guarantee as to the expected results of the Transaction.

 

(x)            Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Deutsche is not making any representations or warranties with respect to the treatment of the Transaction under 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, or under any other accounting guidance.

 

(xi)           Counterparty is not entering into the Transaction for the purpose of (i) creating actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or (ii) raising or depressing or otherwise manipulating the price of the Shares (or any security convertible into or exchangeable for the Shares), in either case in violation of Section 9 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(xii)          Counterparty’s filings under the Securities Act, the Exchange Act, and other applicable securities laws that are required to be filed have been filed and, as of the respective dates thereof and as of the date of this representation, there is no misstatement of material fact contained therein or omission of a material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

 

(xiii)         Counterparty has not violated any applicable law (including, without limitation, the Securities Act and the Exchange Act) in any material respect in connection with the Transaction.

 

(xiv)        The Transaction and any repurchase of the Shares by Counterparty in connection with the Transaction have been approved by Counterparty’s board of directors.

 

(xv)         No state or local (including non-U.S. jurisdictions) or non-U.S. federal law, rule, regulation or regulatory order applicable to the Shares or the Issuer 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 Deutsche or its affiliates owning or holding (however defined) 

 

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Shares in connection with Deutsche’s hedging of the Transaction.

 

Counterparty Covenants:  In addition to the covenants in the Agreement and those contained elsewhere herein, Counterparty hereby covenants that:

 

(i)            Counterparty shall promptly provide written notice to Deutsche upon obtaining knowledge of the occurrence of any event that would constitute an Event of Default, a Potential Event of Default, a Potential Adjustment Event, a Merger Event or any other Extraordinary Event; provided, however, that should Counterparty be in possession of material non-public information regarding Counterparty, Counterparty shall not communicate such information to Deutsche.

 

(ii)           Counterparty shall deliver to Deutsche an opinion of counsel, dated as of the Effective Date and reasonably acceptable to Deutsche in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement and such other matters as Deutsche may reasonably request, and containing customary assumptions, qualifications and exceptions reasonably acceptable to Deutsche.

 

(iii)          Counterparty shall not (a) violate or (b) take any action, or refrain from taking any action, that in either case could reasonably be expected to cause Deutsche or any of its affiliates to violate any applicable law (including, without limitation, the Securities Act and the Exchange Act) in any material respect in connection with the Transaction.

 

(iv)          Counterparty shall, on each Potential Exercise Date and on any day on which Shares may be delivered to Counterparty pursuant to the Transaction, have the capacity and authority to invest directly in the Shares underlying the Transaction.

 

(v)           Any repurchase of Shares by Counterparty in connection with the Transaction will be pursuant to a publicly announced share repurchase program approved by Counterparty’s board of directors and such repurchase shall be publicly disclosed in Counterparty’s periodic filings under the Exchange Act and its financial statements and notes thereto when so required.

 

Miscellaneous:

 

Netting and Set-Off.  The parties hereto agree that the Transaction shall not be subject to netting or set off with any other transaction, notwithstanding anything to the contrary contained in the confirmation or other agreement with respect to any other transaction.

 

Qualified Financial Contracts.  It is the intention of the parties that, in respect of Counterparty, (a) the Transaction shall constitute a “qualified financial contract” within the meaning of 12 U.S.C. Section 1821(e)(8)(D)(i) and (b) a Non-defaulting Party’s rights under Sections 5 and 6 of the Agreement constitute rights of the kind referred to in 12 U.S.C. Section 1821(e)(8)(A).

 

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

 

Staggered Settlement.  Deutsche may, by notice to Counterparty prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares deliverable on such Nominal Settlement Date 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, Deutsche 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 

 

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“Conversion Period”) or delivery times and how it will allocate the Shares it is required to deliver under “Net Share Settlement” above among the Staggered Settlement Dates or delivery times; and (ii) the aggregate number of Shares that Deutsche will deliver to Counterparty hereunder on all such Staggered Settlement Dates and delivery times will equal the number of Shares that Deutsche would otherwise be required to deliver on such Nominal Settlement Date.

 

Additional Termination Events.  The occurrence of (i) an “Event of Default” with respect to Counterparty under the terms of the Convertible Notes as set forth in the provisions of the Indenture described in the Offering Memorandum under “Description of Notes — Events of Default” with respect to which the Convertible Notes are declared immediately due and payable under the terms of the Indenture, (ii) an Amendment Event or (iii) a Repayment 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 Deutsche shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement; provided that in the case of a Repayment Event the Transaction shall be subject to termination only in respect of the portion of the Transaction corresponding to the number of Convertible Notes that cease to be outstanding in connection with or as a result of such Repayment Event; provided  further that if, ten Scheduled Trading Days after the occurrence of any Repayment Event, Deutsche has not designated an Early Termination Date in respect of the applicable portion of the Transaction, Counterparty may designate an Early Termination Date in respect of such portion of the Transaction.  For the avoidance of doubt, any such designation by Counterparty shall not alter the manner of calculation of any termination amount in respect of the terminated portion of the Transaction or limit the period over which Deutsche may complete any hedging unwind activity.  Counterparty will provide prompt notice to Deutsche of the occurrence of any Repayment Event.

 

“Amendment Event” means that Counterparty amends, modifies, supplements or obtains a waiver with respect to any term of the Indenture or the Convertible Notes (i) governing the principal amount, coupon, maturity, repurchase obligation of Counterparty, redemption right of Counterparty, any term relating to conversion of the Convertible Notes (including changes to the conversion price, conversion settlement dates or conversion conditions), (ii) which amendment, modification, supplement or waiver would require consent of the holders of not less than 100% of the principal amount of the Convertible Notes to amend or (iii) which amendment, modification, supplement or waiver could reasonably be expected to have a material adverse effect on this Transaction or Deutsche’s ability to hedge all or a portion of this Transaction.  For the avoidance of doubt, Counterparty electing to decrease the Conversion Price pursuant to a Discretionary Adjustment shall not constitute an Amendment Event.

 

“Repayment Event” means that (A) any Convertible Notes are repurchased (whether in connection with or as a result of a change of control, howsoever defined, or for any other reason) by Counterparty or any of its subsidiaries, (B) any Convertible Notes are delivered to Counterparty or any of its subsidiaries in exchange for delivery of any property or assets of Counterparty or any of its subsidiaries (howsoever described), (C) any principal of any of the Convertible Notes is repaid prior to the final maturity date of the Convertible Notes (whether following acceleration of the Convertible Notes or otherwise), or (D) any Convertible Notes are exchanged by or for the benefit of the holders thereof for any other securities of Counterparty or any of its affiliates (or any other property, or any combination thereof) pursuant to any exchange offer or similar transaction; provided that, in the case of clause (B) and clause (D), conversions of the Convertible Notes pursuant to the terms of the Indenture as in effect on the date hereof shall not be Repayment Events.

 

Disposition of Hedge Shares.  Counterparty hereby agrees that if, in the good faith reasonable judgment of Deutsche, the Shares (the “Hedge Shares”) acquired by Deutsche or any of its affiliates (collectively for the purposes of this paragraph only, “Deutsche”) for the purpose of hedging its obligations pursuant to the Transaction cannot be sold in the public market by Deutsche without registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Deutsche to sell the Hedge Shares in a registered offering, make available to Deutsche 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 reasonably satisfactory to Deutsche, substantially in the form of an underwriting agreement for a registered offering, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Deutsche, (D) provide other 

 

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customary opinions, certificates and closing documents customary in form for registered offerings of equity securities and (E) afford Deutsche a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities; provided, however, that if Deutsche, 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 paragraph shall apply at the election of Counterparty; (ii) in order to allow Deutsche 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 satisfactory to Deutsche, including customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Deutsche, due diligence rights (for Deutsche or any designated buyer of the Hedge Shares from Deutsche), opinions and certificates and such other documentation as is customary for private placements agreements of similar size, all reasonably acceptable to Deutsche (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 Deutsche 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 Deutsche at the VWAP Price on such Exchange Business Days, and in the amounts, requested by Deutsche.  “VWAP Price” means, on any Exchange Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page UTHR.Q <equity> AQR (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, the market value of one Share on such Exchange Business Day, as determined by the Calculation Agent using a volume-weighted method).  This paragraph shall survive the termination, expiration or early unwind of the Transaction.

 

Status of Claims in Bankruptcy.  Deutsche acknowledges and agrees that this Confirmation is not intended to convey to Deutsche rights with respect to the Transaction that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Deutsche’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to the Transaction either outside of a bankruptcy proceeding or (subject only to the limitation on seniority in the preceding clause) within a bankruptcy proceeding; provided, further, that nothing herein shall limit or shall be deemed to limit Deutsche’s rights in respect of any transactions other than the Transaction.

 

No Collateral.  Notwithstanding any provision of this Confirmation, the Agreement, Equity Definitions, or any other agreement between the parties to the contrary, the obligations of Counterparty under the Transaction are not secured by any collateral.

 

Securities Contract; Swap Agreement.  The parties hereto agree and acknowledge that Deutsche is a “financial institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code.  The parties hereto further agree and acknowledge (A) that 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” or a “transfer” 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,” a “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Deutsche is entitled to the protections afforded by, among other sections, Section 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

 

Repurchase Notices.  On any day Counterparty effects any repurchase of Shares (including pursuant to the Share buy-back program publicly disclosed on October 11, 2011 in which Counterparty’s board of directors approved the buy-back of Shares worth not more than USD300,000,000 during the period ending October 3, 2013), Counterparty shall promptly give Deutsche a written notice of such repurchase (a “Repurchase Notice”) 

 

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if, following such repurchase, the Unit Equity Percentage as determined on such day is (a) equal to or greater than 11% and (b) greater by 0.5% or more than the Unit Equity Percentage included in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater by 0.5% or more than the Unit Equity Percentage as of the date hereof).  The “Unit Equity Percentage” as of any day is the fraction, expressed as a percentage, (i) the numerator of which is the product of the number of Note Hedging Units and the Note Hedging Unit Entitlement, and (ii) the denominator of which is the number of Shares outstanding on such day.  Counterparty agrees to indemnify and hold harmless Deutsche and its affiliates and their respective officers, directors, employees, advisors, agents and controlling persons (each, a “Section 16  Indemnified Person”) from and against any and all losses (including losses relating to Deutsche’s hedging activities as a consequence of becoming, or of the risk of becoming, a Section 16 “insider”, including without limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to the Transaction), claims, damages, judgments, liabilities and expenses (including reasonable attorney’s fees), joint or several, to which a Section 16 Indemnified Person may become subject, as a result of Counterparty’s failure to provide Deutsche with a Repurchase Notice on the day and in the manner specified in this paragraph, and to reimburse, upon written request, each of such Section 16 Indemnified Persons for any reasonable legal or other expenses incurred in connection with investigating, preparing for, providing testimony or other evidence in connection with or defending any of the foregoing.  If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the Section 16 Indemnified Person, such Section 16 Indemnified Person shall promptly notify Counterparty in writing, and Counterparty, upon request of the Section 16 Indemnified Person, shall retain counsel reasonably satisfactory to the Section 16 Indemnified Person to represent the Section 16 Indemnified Person and any others Counterparty may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding.  Counterparty shall be relieved from liability to the extent that the Section 16 Indemnified Person fails promptly to notify Counterparty of any action commenced against it in respect of which indemnity may be sought hereunder; provided that failure to notify Counterparty (x) shall not relieve Counterparty from any liability hereunder to the extent it is not materially prejudiced as a result thereof and (y) shall not, in any event, relieve Counterparty from any liability that it may have otherwise than on account of this indemnity agreement.  Counterparty shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Counterparty agrees to indemnify any Section 16 Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  Counterparty shall not, without the prior written consent of the Section 16 Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Section 16 Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Section 16 Indemnified Person, unless such settlement includes an unconditional release of such Section 16 Indemnified Person from all liability on claims that are the subject matter of such proceeding on terms reasonably satisfactory to such Section 16 Indemnified Person.  If the indemnification provided for in this paragraph is unavailable to a Section 16 Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then Counterparty, in lieu of indemnifying such Section 16 Indemnified Person thereunder, shall contribute to the amount paid or payable by such Section 16 Indemnified Person as a result of such losses, claims, damages or liabilities.  The remedies provided for in this paragraph are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Section 16 Indemnified Person at law or in equity.  The indemnity and contribution agreements contained in this paragraph shall remain operative and in full force and effect regardless of the termination of the Transaction.

 

Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.  If one party owes the other party any amount in connection with the Transaction pursuant to Sections 12.2, 12.3 (and “Consequences of Merger Events” above), 12.6, 12.7 or 12.9 of the Equity Definitions (except in the case of an Extraordinary Event in which the consideration or proceeds to be paid to holders of Shares as a result of such event consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the case of an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, other than (x) an Event of Default of the type described in Section 5(a)(iii), (v), (vi) or (vii) of the Agreement or (y) a Termination Event of the type described in Section 5(b)(i), (ii), (iii), (iv), (v) or (vi) of the Agreement that in the case of either (x) or (y) resulted from an event or events outside Counterparty’s control) (if owed by Counterparty, a “Counterparty Payment Obligation” and if owed by Deutsche, a “Deutsche Payment Obligation”), Counterparty shall have the right, in its sole discretion, to satisfy any such 

 

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Counterparty Payment Obligation or to require Deutsche to satisfy any such Deutsche Payment Obligation by delivery of Termination Delivery Units (as defined below) by giving irrevocable telephonic notice to Deutsche, confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 a.m. and 4:00 p.m. New York time on the Early Termination Date or other date the transaction is terminated, as applicable (“Notice of Termination Delivery”).  Within a commercially reasonable period of time following receipt of a Notice of Termination Delivery, Counterparty shall deliver to Deutsche a number of Termination Delivery Units having a cash value equal to the amount of such Counterparty Payment Obligation or Deutsche shall deliver to Counterparty a number of Termination Delivery Units having a cash value equal to the amount of such Deutsche Payment Obligation (such number of Termination Delivery Units to be delivered to be determined by the Calculation Agent as the number of whole Termination Delivery Units that could be sold over a commercially reasonable period of time to generate proceeds (or purchased over a commercially reasonable period of time with an amount, as applicable) equal to the cash equivalent of such payment obligation).  In the case of a Counterparty Payment Obligation, the parties agree to enter into customary and commercially reasonable documentation relating to the registered or exempt resale of such Termination Delivery Units.  If the provisions set forth in this paragraph are applicable, the provisions of Sections 9.8, 9.9, 9.10, 9.11 (modified as described above) and 9.12 of the Equity Definitions shall be applicable, except that all references to “Shares” shall be read as references to “Termination Delivery Units.”

 

“Termination Delivery Unit” means (a) in the case of a Termination Event, an Event of Default or an Extraordinary Event (other than an Insolvency, Nationalization or Merger Event), one Share or (b) in the case of an Insolvency, Nationalization or Merger Event, 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.  If a Termination Delivery Unit consists of property other than cash or New Shares and Counterparty provides irrevocable written notice to the Calculation Agent on or prior to the Closing Date that it elects to deliver (or receive) cash, New Shares or a combination thereof (in such proportion as Counterparty designates) in lieu of such other property, the Calculation Agent shall replace such property with cash, New Shares or a combination thereof as components of a Termination Delivery Unit in such amounts, as determined by the Calculation Agent in its discretion by commercially reasonable means, as shall have a value equal to the value of the property so replaced.  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.

 

Rule 10b-18.  Except as disclosed to Deutsche in writing prior to the date on which the offering of the Convertible Notes was first announced, Counterparty represents and warrants to Deutsche that it has not made any purchases of blocks by or for itself or any of its Affiliated Purchasers pursuant to the one block purchase per week exception in Rule 10b-18(b)(4) under the Exchange Act during each of the four calendar weeks preceding, and during the week of, such date (“Rule 10b-18 purchase,” “blocks” and “Affiliated Purchaser” each as defined in Rule 10b-18 under the Exchange Act).  Counterparty agrees and acknowledges that it shall not, and shall cause its affiliates and Affiliated Purchasers not to, directly or indirectly (including by means of a derivative instrument) enter into any transaction to purchase any Shares during the period beginning on such date and ending on the day on which Deutsche has informed Counterparty in writing that it has completed all purchases of Shares or other transactions to hedge initially its exposure to the Transaction, except as provided in the Accelerated Share Repurchase transaction entered into between the parties on the date hereof.

 

Regulation M.  Counterparty was not on the date on which the offering of the Convertible Notes was first announced, has not since such date and prior to the date hereof, and is not on the date hereof, engaged in a distribution, as such term is used in Regulation M under the Exchange Act, of any securities of Counterparty, other than a distribution meeting the requirements of the exception set forth in Sections 101(b)(10) and 102(b)(7) of Regulation M under the Exchange Act.  Counterparty shall not, until the day on which Deutsche has informed Counterparty in writing that it has completed all purchases of Shares or other transactions to hedge initially its exposure to the Transaction, engage in any such distribution.

 

No Material Non-Public Information.  On each day (i) during the period beginning on the day on which the offering of the Convertible Notes was first announced and ending on the Effective Date and (ii) on which 

 

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Counterparty designates an Early Termination Date pursuant to “Additional Termination Events” above, Counterparty represents and warrants to Deutsche that it is not aware of any material nonpublic information concerning itself or the Shares.

 

Right to Extend.  Deutsche may postpone any Potential Exercise Date or postpone or extend any other date of valuation or delivery with respect to some or all of the relevant Note Hedging Units (in which event the Calculation Agent shall make appropriate adjustments to the Settlement Amount for such Note Hedging Units), if Deutsche determines, in its reasonable discretion (in the case of clause (ii) below, based on the advice of counsel), that such extension is reasonably necessary or appropriate to (i) preserve Deutsche’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions or (ii) enable Deutsche to effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would, if Deutsche were the Issuer or an affiliated purchaser of the Issuer, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Deutsche (provided that such requirements, policies or procedures are generally applicable in similar situations and applied to the Transaction in a non-discriminatory manner).

 

Transfer or Assignment.  Counterparty may not transfer any of its rights or obligations under the Transaction without the prior written consent of Deutsche.  Deutsche may transfer or assign (1) all or a portion of its Note Hedging Units hereunder at any time to any affiliate of Deutsche or (2) the Terminated Portion under the conditions and pursuant to the provisions set forth in the immediately following paragraph to any other recognized dealer in transactions such as the Transaction, in each case with a rating (or whose guarantor has a rating) for its long term, unsecured and unsubordinated indebtedness of A+ or better by Standard & Poor’s Ratings Services or its successor (“S&P”), or A1 or better by Moody’s Investors Service, Inc. or its successor (“Moody’s”) or, if either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or better by a substitute agency rating mutually agreed by Counterparty and Deutsche, without the consent of Counterparty; provided that in the case of clause (1), Counterparty will not, as a result of such transfer and/or assignment, be required under the Agreement or this Confirmation to (x) pay to the transferee or assignee an amount greater than the amount that it would have been required to pay to Deutsche in the absence of such transfer or assignment or (y) receive from the transferee or assignee an amount less than the amount that Counterparty would have received from Deutsche in the absence of such transfer or assignment, in each case based on the circumstances in effect on the date of such transfer.  Deutsche shall provide Counterparty with written notice of any such transfer or assignment.

 

If, as determined in Deutsche’s sole reasonable discretion based on advice of counsel, (a) at any time (1) the Equity Percentage exceeds 8.5% or (2) Deutsche, Deutsche Group (as defined below) or any person whose ownership position would be aggregated with that of Deutsche or Deutsche Group (Deutsche, Deutsche Group or any such person, a “Deutsche Person”) under Section 203 of the Delaware General Corporation Law (the “DGCL Takeover Statute”) or other federal, state or local (including non-U.S.) laws, regulations or regulatory orders 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, or could be reasonably viewed as meeting any of the foregoing, in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting, registration, filing or notification obligations or other requirements (including obtaining prior approval by a state, federal or non-U.S. regulator) of a Deutsche Person under Applicable Laws (including, without limitation, “interested shareholder” or “acquiring Person” status under the DGCL Takeover Statute) and with respect to which such requirements have not been met or the relevant approval has not been received minus (y) 1% of the number of Shares outstanding on the date of determination (either such condition described in clause (1) or (2), an “Excess Ownership Position”), and (b) Deutsche is unable, after commercially reasonable efforts, to effect a transfer or assignment on pricing and terms and within a time period reasonably acceptable to it of all or a portion of this Transaction pursuant to the preceding paragraph such that an Excess Ownership Position no longer exists, Deutsche may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of this Transaction, such that an Excess Ownership Position no longer exists following such partial termination; provided,  however, that Deutsche agrees to use commercially reasonable efforts to establish and maintain its Hedge Positions in a manner that will not cause an Excess Ownership Position to arise.  In the event that Deutsche so designates an Early Termination Date with respect to a portion of this Transaction, a payment shall be made pursuant to Section 6 of the 

 

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Agreement as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to this Transaction and a Number of Note Hedging Units equal to the Terminated Portion, (ii) Counterparty shall be the sole Affected Party with respect to such partial termination and (iii) such Transaction shall be the only Terminated Transaction (and, for the avoidance of doubt, the provisions set forth under the caption “Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events” shall apply to any amount that is payable by Deutsche to Counterparty pursuant to this sentence).  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 Deutsche and any of its affiliates subject to aggregation with Deutsche for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act and all persons who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Deutsche (collectively, “Deutsche Group”) “beneficially own” (within the meaning of Section 13 of the Exchange Act) without duplication on such day (or to the extent that 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.

 

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

 

Matters Related to Agent.  Each party agrees and acknowledges that (i) Agent acts solely as agent on a disclosed basis with respect to the Transaction, and (ii) Agent has no obligation, by guaranty, endorsement or otherwise, with respect to the obligations of either Counterparty or Deutsche hereunder, either with respect to the delivery of cash or Shares, either at the beginning or the end of the Transaction.  In this regard, each of Counterparty and Deutsche acknowledges and agrees to look solely to the other for performance hereunder, and not to Agent.

 

Severability; Illegality.  If compliance by either party with any provision of the Transaction would be unenforceable or illegal, (a) the parties shall negotiate in good faith to resolve such unenforceability or illegality in a manner that preserves the economic benefits of the transactions contemplated hereby and (b) the other provisions of the Transaction shall not be invalidated, but shall remain in full force and effect.

 

Waiver of Jury Trial.   EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE TRANSACTION.  EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.

 

Early Unwind.  In the event the sale of the initial issuance of the Convertible Notes is not consummated with the initial purchaser thereof for any reason by the close of business in New York on October 17, 2011 (or such later date as agreed upon by the parties) (October 17, 2011 or such later date as agreed upon being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (a) the Transaction and all of the respective rights and obligations of Deutsche and Counterparty under the Transaction shall be cancelled and terminated and (b) 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 the other party arising out of and to be performed in connection with the Transaction either prior to, on or after the Early Unwind Date.  Deutsche 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.

 

18

 

Limitations on Settlement by Counterparty.  Notwithstanding anything herein or in the Agreement to the contrary, in no event shall Counterparty be required to deliver Shares in connection with the Transaction in excess of 500,000 Shares (the “Maximum Delivery Amount”).  Counterparty represents and warrants (which shall be deemed to be repeated on each day that the Transaction is outstanding) that the Maximum Delivery Amount is equal to or less than the number of authorized but unissued Shares of Counterparty 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 Maximum Delivery Amount (such Shares, the “Available Shares”).  In the event Counterparty shall not have delivered the full number of Shares otherwise deliverable as a result of this paragraph (the resulting deficit, the “Deficit Shares”), Counterparty 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 Counterparty 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 reserved for issuance in respect of other transactions prior to such date which prior to the relevant date become no longer so reserved and (iii) Counterparty additionally authorizes any unissued Shares that are not reserved for other transactions.  Counterparty shall immediately notify Deutsche 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. Notwithstanding the provisions of Section 5(a)(ii) of the Agreement, in the event of a failure by Counterparty to comply with the agreement set forth in this provision, there shall be no grace period for remedy of such failure.

 

Governing law:     The law of the State of New York.

 

Contact information. For purposes of the Agreement (unless otherwise specified in the Agreement), the addresses for notice to the parties shall be:

 

(a) Counterparty

 

United Therapeutics Corporation

1040 Spring St.
 Silver Spring, MD 20910
 Attention: John Ferrari, Chief Financial Officer and Treasurer
 Fax:  (301) 608-3049

 

(b) Deutsche

Deutsche Bank AG, London Branch

c/o Deutsche Bank Securities Inc.

60 Wall Street 
 New York, NY 10005

 

Attention:              Andrew Yaeger

Faiz Khan

 

Telephone:            (212) 250-2717

(212) 250-0668

 

Email:                      andrew.yaeger@db.com

faiz.khan@db.com

 

19

 

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

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning to Deutsche a facsimile of the fully-executed Confirmation to Deutsche at 44 113 336 2009.  Originals shall be provided for your execution upon your request.

 

We are very pleased to have executed the Transaction with you and we look forward to completing other transactions with you in the near future.

 

Very truly yours,

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

	
By:
    	
/s/   Michael Sanderson
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   Sanderson
    	
 
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Lars Kestner
    	
 
    	
 
    
	
 
    	
Name:
    	
Lars   Kestner
    	
 
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    	
 
    

 

DEUTSCHE BANK SECURITIES INC.,

acting solely as Agent in connection with this Transaction

 

 

	
By:
    	
/s/ Michael Sanderson
    	
 
    
	
 
    	
Name:
    	
Michael   Sanderson
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Lars Kestner
    	
 
    
	
 
    	
Name:
    	
Lars   Kestner
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    

 

Counterparty hereby agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

 

UNITED THERAPEUTICS CORPORATION

 

	
By:
    	
/s/   John Ferrari
    	
 
    	
 
    
	
 
    	
Name:
    	
John   Ferrari
    	
 
    	
 
    
	
 
    	
Title:
    	
CFO
    	
 
    	
 
    

 

[Signature Page to Note Hedge]

 

 

ANNEX A

 

The Premium for the Transaction is set forth below:

 

	
Premium:
    	
 
    	
[***]
    

 

A-1Exhibit 10.4

 

Pursuant to 17 CFR 240.24b-2, confidential information (indicated by [***]) has been omitted from Annex B and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

 

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
    

 

Opening Transaction

 

	
DATE:
    	
October 11,   2011
    
	
 
    	
 
    
	
TO:
    	
United   Therapeutics Corporation
    
	
ATTENTION:
    	
John   Ferrari, Chief Financial Officer and Treasurer
    
	
TELEPHONE:
    	
(301) 608-9292
    
	
FACSIMILE:
    	
(301) 608-3049
    
	
 
    	
 
    
	
FROM:
    	
Deutsche   Bank AG, London Branch
    
	
TELEPHONE:
    	
44   20 7545 8193
    
	
FACSIMILE:
    	
44   11 3336 2009
    
	
 
    	
 
    
	
SUBJECT:
    	
Accelerated   Share Repurchase
    
	
 
    	
 
    
	
REFERENCE   NUMBER(S):
    	
457100
    

 

The purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between Deutsche Bank AG, London Branch (“Deutsche”) and United Therapeutics Corporation (“Counterparty”) on the Trade Date specified below (the “Transaction”).  This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  This Confirmation constitutes the entire agreement and understanding of the parties with respect to the subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and oral communications with respect thereto.

 

DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  DEUTSCHE BANK SECURITIES INC. (“AGENT”) 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 RELATING TO THE TRANSACTION BETWEEN DEUTSCHE AND COUNTERPARTY SHALL BE TRANSMITTED EXCLUSIVELY THROUGH AGENT.  DEUTSCHE BANK AG, LONDON

 

	
Chairman   of the Supervisory Board: Clemens Börsig Management Board: Josef Ackermann   (Chairman), Hugo Bänziger, Jürgen Fitschen, Anshuman Jain, Stefan Krause,   Hermann-Josef Lamberti, Rainer Neske
    	
 
    	
Deutsche   Bank AG is authorised under German Banking Law (competent authority: BaFin –   Federal Financial Supervising Authority) and regulated by the Financial   Services Authority for the conduct of UK business; a member of the London   Stock Exchange. Deutsche Bank AG is a joint stock corporation with limited   liability incorporated in the Federal Republic of Germany HRB No. 30 000   District Court of Frankfurt am Main; Branch Registration in England and Wales   BR000005; Registered address: Winchester House, 1 Great Winchester Street,   London EC2N 2DB. Deutsche Bank Group online: http://www.deutsche-bank.com
    

 

 

BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

 

The definitions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation.  In the event of any inconsistency between the Equity Definitions and the terms of this Confirmation, the terms of this Confirmation shall govern.

 

This Confirmation evidences a complete and binding agreement between Deutsche and Counterparty as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall supplement, form a part of, and be subject to an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement (the “ISDA Form”) as if Deutsche and Counterparty had executed an agreement in such form (without any Schedule but with the elections set forth in this Confirmation).  For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

 

1.             The Transaction constitutes a Share Forward Transaction for the purposes of the Equity Definitions.  Set forth below are the terms and conditions that shall govern such Transaction.

 

General Terms:

 

	
Trade   Date:
    	
 
    	
October 11,   2011
    
	
 
    	
 
    	
 
    
	
Effective   Date:
    	
 
    	
October 17,   2011
    
	
 
    	
 
    	
 
    
	
Convertible   Notes:
    	
 
    	
1.0%   Senior Convertible Notes of Counterparty due September 15, 2016, offered   pursuant to the Offering Memorandum dated October 11, 2011.
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Deutsche   Bank AG, London Branch
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The   common stock, par value $0.01 per share, of Counterparty (Ticker: UTHR)
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The   NASDAQ Global Select Market
    
	
 
    	
 
    	
 
    
	
Related   Exchange(s):
    	
 
    	
All   Exchanges.
    
	
 
    	
 
    	
 
    
	
Prepayment/Variable   Obligation:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Prepayment   Amount:
    	
 
    	
USD   212,000,000
    
	
 
    	
 
    	
 
    
	
Prepayment   Date:
    	
 
    	
The   Effective Date.
    
	
 
    	
 
    	
 
    
	
Valuation:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
VWAP   Price:
    	
 
    	
For   any Exchange Business Day, as determined by the Calculation Agent based on   the NASDAQ 10b-18 Volume Weighted Average Price per Share for the regular   trading session of the Exchange in respect of the period from 9:30 a.m.   to 4:00 p.m. (New York City time) on such Exchange Business Day, as   published by on Bloomberg page “UTHR.Q <Equity> AQR_SEC” (or any   successor thereto), subject to “Valuation Disruption” below, or if such price   is not so reported on such Exchange Business Day for any reason, such VWAP   Price shall be as reasonably determined by the Calculation Agent. For   purposes of calculating the VWAP Price, the Calculation Agent will include   only those trades that are reported during the period of time during which   Counterparty could purchase its own shares under Rule 10b-18(b)(2) and   are effected pursuant 
    

 

2

 

	
 
    	
 
    	
to   the conditions of Rule 10b-18(b)(3), each under the Securities Exchange   Act of 1934, as amended (the “Exchange Act”)   (such trades, “Rule 10b-18 eligible transactions”).
    
	
 
    	
 
    	
 
    
	
Forward   Price:
    	
 
    	
The   arithmetic average of the VWAP Prices for the Exchange Business Days in the   Calculation Period, subject to “Valuation Disruption” below.
    
	
 
    	
 
    	
 
    
	
Forward   Price Adjustment Amount:
    	
 
    	
As   set forth in Annex B.
    
	
 
    	
 
    	
 
    
	
Calculation   Period:
    	
 
    	
The   period from, and including, the Calculation Period Start Date to, and   including, the Termination Date.
    
	
 
    	
 
    	
 
    
	
Calculation   Period Start Date:
    	
 
    	
The   first Scheduled Trading Day immediately following the Trade Date.
    
	
 
    	
 
    	
 
    
	
Termination   Date:
    	
 
    	
The   Scheduled Termination Date; provided that   Seller shall have the right, from time to time, to designate any Exchange   Business Day (which shall not be after the Scheduled Termination Date) on or   after the First Acceleration Date to be the Termination Date (the “Accelerated Termination Date”) with respect to all, or any   portion that is at least $50 million, of the Prepayment Amount for such   Transaction by delivering notice to Counterparty of any such designation   prior to 11:59 p.m. New York City time on the Exchange Business Day   immediately following the designated Accelerated Termination Date. If Seller   designates an Accelerated Termination Date with respect to less than all of   the Prepayment Amount (such portion, the “Accelerated   Portion”), then upon the occurrence of such Accelerated   Termination Date, the Transaction shall be considered two Transactions with   terms identical to those of the original Transaction, except that   (1) the first such resulting Transaction (the “Accelerated   Transaction”) shall have (x) a Prepayment Amount equal to the   Accelerated Portion, (y) a Delivered Number, rounded down to the nearest   whole number, equal to the corresponding number for the original Transaction multiplied  by a fraction   the numerator of which is the Accelerated Portion and the denominator of   which is the Prepayment Amount for the original Transaction and (z) a   Termination Date occurring on such Accelerated Termination Date and   (2) the second such resulting Transaction (the “Remaining   Transaction”) shall have (x) a Prepayment Amount equal to the   Prepayment Amount for the Transaction immediately preceding such Accelerated   Termination Date minus the   Accelerated Portion and (y) a Delivered Number equal to the   corresponding number for the Transaction immediately preceding such   Accelerated Termination Date minus the   corresponding number for the Accelerated Transaction. For the avoidance of   doubt, following settlement of the Accelerated Transaction, the Remaining   Transaction shall be treated for all purposes as the sole Transaction   hereunder and may be subject to a further Accelerated Termination Date as set   forth above. Any notice to be delivered by Seller of an Accelerated   Termination Date pursuant to the foregoing shall specify an Accelerated   Portion, if applicable.
    
	
 
    	
 
    	
 
    
	
Scheduled   Termination Date:
    	
 
    	
As   set forth in Annex B.
    
	
 
    	
 
    	
 
    
	
First   Acceleration Date:
    	
 
    	
As   set forth in Annex B.
    
	
 
    	
 
    	
 
    
	
Valuation   Disruption:
    	
 
    	
The   definition of “Market Disruption Event” in Section 6.3(a) of the   Equity Definitions is hereby amended by deleting the words “at any time   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” and inserting the words “at any time on any Scheduled Trading   Day during the 
    

 

3

 

	
 
    	
 
    	
Calculation   Period, Share Termination Valuation Period or Settlement Valuation Period”   after the word “material,” in the third line thereof.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
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.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   anything to the contrary in the Equity Definitions, if a Disrupted Day occurs   (a) in the Calculation Period, the Calculation Agent may, in its good   faith and commercially reasonable discretion, postpone the Scheduled   Termination Date by a number of Scheduled Trading Days not greater than the   number of such Disrupted Days, or (b) in the Share Termination Valuation   Period or the Settlement Valuation Period, the Calculation Agent may, in its   good faith and commercially reasonable discretion, extend the Share   Termination Valuation Period or Settlement Valuation Period by a number of   Scheduled Trading Days not greater than the number of such Disrupted Days.   The Calculation Agent may determine whether (i) such Disrupted Day is a   Disrupted Day in full, in which case the VWAP Price or value of Share   Termination Delivery Units, as applicable, for such Disrupted Day shall not   be included for purposes of determining the Forward Price, the Share   Termination Unit Price or the Settlement Price, as the case may be, or   (ii) such Disrupted Day is a Disrupted Day only in part, in which case   (x) the VWAP Price or value of Share Termination Delivery Units, as   applicable, for such Disrupted Day shall be determined by the Calculation   Agent based on Rule 10b-18 eligible transactions in the Shares or based   on transactions in the Share Termination Delivery Units, as applicable, on such   Disrupted Day taking into account the nature and duration of such Market   Disruption Event and (y) in the case of a Disrupted Day during the   Calculation Period or a Settlement Valuation Period, the Calculation Agent   shall determine any Forward Price or Settlement Price based on an   appropriately weighted average instead of the arithmetic average described in   the definition thereof. Any Scheduled Trading Day on which the Exchange is   scheduled to close prior to its normal close of trading shall be deemed to be   a Disrupted Day in full. Following the occurrence of a Disrupted Day, the   Calculation Agent shall, as soon as reasonably practicable after the   occurrence of such Disrupted Day, notify Counterparty in writing of   (x) any such weighting, extension or suspension and (y) unless the   Disrupted Day was caused by a Regulatory Disruption, the circumstances giving   rise to such Disrupted Day.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   occurrence of a Disrupted Day during the Calculation Period, the Share   Termination Valuation Period or the Settlement Valuation Period, as the case   may be, and on each of the nine immediately following Scheduled Trading Days   will constitute an Additional Termination Event, with Counterparty as the   sole Affected Party and the Transaction hereunder as the Affected Transaction.
    
	
 
    	
 
    	
 
    
	
Settlement   Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Settlement   Procedures:
    	
 
    	
If   the Number of Shares to be Delivered is positive, Physical Settlement shall   be applicable; provided that Seller does not,   and shall not, make the agreement or the representations solely related to the   restrictions imposed by applicable securities laws set forth in   Section 9.11 of the Equity Definitions with respect to any Shares   delivered by Seller to Counterparty under any Transaction. If the Number of   Shares to be Delivered is negative, then the Counterparty Settlement   Provisions in Annex A shall apply.
    
				

 

4

 

	
Number   of Shares to be Delivered:
    	
 
    	
A   number of Shares equal to (a) the Collared Number of Shares minus (b) the number of Shares delivered by Seller   pursuant to “Initial Share Delivery” below (the “Delivered   Number”); provided that   such number of Shares shall not be a number less than zero unless   Section 8 shall apply.
    
	
 
    	
 
    	
 
    
	
Collared   Number of Shares:
    	
 
    	
A   number of Shares (rounded to the nearest whole Share) equal to (a) the   Prepayment Amount divided by   (b) the Forward Price minus the   Forward Price Adjustment Amount; provided that   the Forward Price minus the   Forward Price Adjustment Amount shall not exceed the Cap Price nor be less   than the Floor Price.
    
	
 
    	
 
    	
 
    
	
Cap   Price:
    	
 
    	
As   set forth in Annex B.
    
	
 
    	
 
    	
 
    
	
Floor   Price:
    	
 
    	
As   set forth in Annex B.
    
	
 
    	
 
    	
 
    
	
Excess   Dividend Amount:
    	
 
    	
For   the avoidance of doubt, all references to the Excess Dividend Amount shall be   deleted from Section 9.2(a)(iii) of the Equity Definitions.
    
	
 
    	
 
    	
 
    
	
Settlement   Date:
    	
 
    	
If   the Number of Shares to be Delivered is positive, the date that is one   Settlement Cycle immediately following the Termination Date.
    
	
 
    	
 
    	
 
    
	
Settlement   Currency:
    	
 
    	
USD
    
	
 
    	
 
    	
 
    
	
Initial   Share Delivery:
    	
 
    	
Seller   shall deliver a number of Shares equal to the Initial Shares on the Initial   Share Delivery Date in accordance with Section 9.4 of the Equity   Definitions, with the Initial Share Delivery Date deemed to be a “Settlement   Date” for purposes of such Section 9.4.
    
	
 
    	
 
    	
 
    
	
Initial   Share Delivery Date:
    	
 
    	
The   Effective Date.
    
	
 
    	
 
    	
 
    
	
Initial   Shares:
    	
 
    	
As   set forth in Annex B.
    
	
 
    	
 
    	
 
    
	
Share   Adjustments:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Potential   Adjustment Event:
    	
 
    	
Notwithstanding   anything to the contrary in Section 11.2(e) of the Equity   Definitions, an Extraordinary Dividend shall not constitute a Potential   Adjustment Event.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
It   shall constitute an additional Potential Adjustment Event if the Scheduled   Termination Date for the Transaction is postponed pursuant to “Valuation   Disruption” above, in which case the Calculation Agent may, in its   commercially reasonable discretion, adjust any relevant terms of any such   Transaction as the Calculation Agent determines appropriate to account for   the economic effect on the Transaction of such postponement.
    
	
 
    	
 
    	
 
    
	
Extraordinary   Dividend:
    	
 
    	
For   any calendar quarter, any dividend or distribution on the Shares with an   ex-dividend date occurring during such calendar quarter, if (i) such   dividend or distribution is not a dividend or distribution of the type   described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of   the Equity Definitions and (ii) in the case of a cash dividend, the   amount per Share of such cash dividend, taken together with the amount of all   previous cash dividends with ex-dividend dates occurring in the same calendar   quarter, exceeds the Ordinary Dividend Amount.
    
	
 
    	
 
    	
 
    
	
Ordinary   Dividend Amount:
    	
 
    	
USD0.00
    

 

5

 

	
Method   of Adjustment:
    	
 
    	
Calculation   Agent Adjustment
    
	
 
    	
 
    	
 
    
	
Extraordinary   Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Consequences   of Merger Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(a)   Share-for-Share:
    	
 
    	
Modified   Calculation Agent Adjustment
    
	
 
    	
 
    	
 
    
	
(b)   Share-for-Other:
    	
 
    	
Cancellation   and Payment
    
	
 
    	
 
    	
 
    
	
(c)   Share-for-Combined:
    	
 
    	
Component   Adjustment
    
	
 
    	
 
    	
 
    
	
Tender   Offer:
    	
 
    	
Applicable;   provided that   (i) Section 12.1(d) of the Equity Definitions shall be amended   by replacing the word “results” with the words “may result” in the second   line thereof, (ii) Section 12.1(l) of the Equity Definitions   shall be amended (x) by deleting the parenthetical in the fifth line   thereof, (y) by replacing “that” in the fifth line thereof with “whether   or not such announcement” and (z) by adding immediately after the words   “Tender Offer” in the fifth line thereof “, and any publicly announced change   or amendment to such an announcement (including the announcement of an abandonment   of such intention)” and (iii) Section 12.3(d) of the Equity   Definitions shall be amended (x) by replacing the words “Tender Offer   Date” with “Tender Offer Date or Announcement Date, as applicable,” and   (y) by replacing each occurrence of the words “Tender Offer” with   “Tender Offer or announcement, as applicable,”.
    
	
 
    	
 
    	
 
    
	
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
    
	
 
    	
 
    	
 
    
	
Nationalization,   Insolvency or Delisting:
    	
 
    	
 

Cancellation   and Payment; 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 be deemed to be the   Exchange.
    
	
 
    	
 
    	
 
    
	
Additional   Disruption Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(a)   Change in   Law:
    	
 
    	
Applicable;   provided that   (x) Section 12.9(a)(ii) of the Equity Definitions is hereby   amended (i) by the replacement of the word “Shares” with “Hedge   Positions”; (ii) by adding the phrase “announcement or statement of or”   immediately after the phrase “due to the promulgation of or” in the third   line thereof and adding the phrase “formal or informal” before the word   “interpretation” in the same line; (iii) immediately following the word   “Transaction” in clause (X) thereof, adding the phrase “in the manner   contemplated by the
    
				

 

6

 

	
 
    	
 
    	
Hedging   Party on the Trade Date (unless another manner of holding, acquiring or   disposing of, as applicable, Hedge Positions relating to such Transaction   that is available to Hedging Party would be commercially reasonable, as   reasonably determined by Hedging Party, and is not illegal)”; and   (iv) by 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) any determination as to whether (A) the adoption of or   change in any applicable law or regulation (including, without limitation,   any tax law) or (B) the promulgation of or any change in or announcement   or statement of the formal or informal interpretation by any court, tribunal   or regulatory authority with competent jurisdiction of any applicable law or   regulation (including any action taken by a taxing authority), in each case,   constitutes a “Change in Law” shall be made without regard to   Section 739 of the Wall Street Transparency and Accountability Act of   2010 or any similar legal certainty provision in any legislation enacted, or   rule or regulation promulgated, on or after the Trade Date and   (z) Deutsche may exercise its termination rights with respect to a   “Change in Law” described in clause (Y) of   Section 12.9(a)(ii) of the Equity Definitions only if Deutsche   determines, based upon advice of counsel, that it is generally exercising its   right to terminate as a result of such event with respect to similarly   situated counterparties.
    
	
 
    	
 
    	
 
    
	
(b)   Failure to   Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
(c)   Insolvency   Filing:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
(d)   Loss of Stock   Borrow:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Maximum   Stock Loan Rate:
    	
 
    	
200   basis points per annum
    
	
 
    	
 
    	
 
    
	
(e)   Increased   Cost of Stock Borrow:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Initial Stock Loan Rate:
    	
 
    	
40   basis points per annum
    
	
 
    	
 
    	
 
    
	
Hedging   Party:
    	
 
    	
For   all applicable Additional Disruption Events, Seller
    
	
 
    	
 
    	
 
    
	
Determining   Party:
    	
 
    	
For   all applicable Extraordinary Events, Seller. The Determining Party shall,   upon reasonable written request by Counterparty, provide promptly a written   explanation (in a commonly used file format for the storage and manipulation   of financial data) displaying in reasonable detail the basis of any   determination made by it including, where applicable, a description of the   methodology and data applied, it being understood that the Determining Party   shall not be obligated to disclose any proprietary models used by it for such   determination.
    
	
 
    	
 
    	
 
    
	
Additional   Termination Event(s):
    	
 
    	
Notwithstanding   anything to the contrary in the Equity Definitions, if, as a result of an   Extraordinary Event, the Transaction would be cancelled or terminated   (whether in whole or in part) pursuant to Article 12 of the Equity   Definitions, an
    

 

7

 

	
 
    	
 
    	
Additional   Termination Event (with such terminated Transaction (or portions thereof)   being the Affected Transaction and Counterparty being the sole Affected   Party) shall be deemed to occur, and, in lieu of Sections 12.7, 12.8 and 12.9   of the Equity Definitions, Seller may elect for Section 6 of the   Agreement to apply to such Affected Transaction.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   declaration by the Issuer of any Extraordinary Dividend, the ex-dividend date   for which occurs or is scheduled to occur during the Relevant Dividend   Period, will constitute an Additional Termination Event, with Counterparty as   the sole Affected Party and the Transaction hereunder as the Affected   Transaction.
    
	
 
    	
 
    	
 
    
	
Relevant   Dividend Period:
    	
 
    	
The   period from and including the Trade Date to and including the Relevant   Dividend Period End Date.
    
	
 
    	
 
    	
 
    
	
Relevant   Dividend Period End Date:
    	
 
    	
If   the Number of Shares to be Delivered is negative, the last day of the   Settlement Valuation Period; otherwise, the Termination Date.
    
	
 
    	
 
    	
 
    
	
Non-Reliance/Agreements   and Acknowledgements Regarding Hedging Activities/Additional   Acknowledgements:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Seller   Payment Instructions:
    	
 
    	
Bank   of New York
    
	
 
    	
 
    	
ABA 021-000-018
    
	
 
    	
 
    	
Deutsche Bank Securities, Inc.
    
	
 
    	
 
    	
A/C   8900327634
    
	
 
    	
 
    	
FFC:   United Therapeutics Corp
    
	
 
    	
 
    	
 
    
	
Counterparty’s   Contact Details for Purpose of Giving Notice:
    	
 
    	
To   be provided by Counterparty
    
	
 
    	
 
    	
 
    
	
Seller’s   Contact Details for Purpose of Giving Notice:
    	
 
    	
Deutsche   Bank AG, London Branch
    
	
 
    	
 
    	
c/o Deutsche Bank Securities Inc.
    
	
 
    	
 
    	
60   Wall Street
    
	
 
    	
 
    	
New   York, NY 10005
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attention:
    	
David   Sullivan
    
	
 
    	
 
    	
 
    	
Andrew   Yaeger
    
	
 
    	
 
    	
 
    	
Faiz   Khan
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Telephone:
    	
(212)   250-4580
    
	
 
    	
 
    	
 
    	
(212) 250-2717
    
	
 
    	
 
    	
 
    	
(212) 250-0668
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Email:
    	
dave.sullivan@db.com
    
	
 
    	
 
    	
 
    	
andrew.yaeger@db.com
    
	
 
    	
 
    	
 
    	
faiz.khan@db.com
    
	
 
    	
 
    	
 
    	
 
    
	
Calculation   Agent:
    	
 
    	
Seller.   The Calculation Agent shall, upon reasonable written request by Counterparty,   provide promptly a written explanation (in a commonly used file format for   the storage and manipulation of financial data) displaying in reasonable   detail the basis of any calculation or adjustment made by it including,
    

 

8

 

	
 
    	
 
    	
where   applicable, a description of the methodology and data applied, it being understood   that the Calculation Agent shall not be obligated to disclose any proprietary   models used by it for such calculation or adjustment.
    

 

2.             Additional Mutual Representations, Warranties and Covenants.

 

(a)           Eligible Contract Participant.  In addition to the representations, warranties and covenants in the Agreement, each party represents, warrants and covenants to the other party that it is an “eligible contract participant”, as defined in the U.S. Commodity Exchange Act (as amended), and is entering into the Transaction hereunder as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not for the benefit of any third party.

 

(b)           Accredited Investor and Qualified Institutional Buyer.  Each party 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(2) thereof.  Accordingly, each party represents and warrants to the other that (i) it has the financial ability to bear the economic risk of its investment in such Transaction and is able to bear a total loss of its investment and (ii) it is an “accredited investor” as that term is defined under Regulation D under the Securities Act.

 

3.             Additional Representations, Warranties and Covenants of Counterparty.  In addition to the representations, warranties and covenants in the Agreement, Counterparty represents, warrants and covenants to Seller that:

 

(a)           The purchase of Shares by Counterparty from Seller pursuant to, and Counterparty’s entry into, the Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

 

(b)           It is not entering into the Transaction (i) on the basis of, and is not aware of, any material non-public information with respect to Counterparty or the Shares, (ii) in anticipation of, in connection with, or to facilitate, a distribution of its securities, a self tender offer or a third-party tender offer or (iii) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares).

 

(c)           The Transaction is being entered into pursuant to a publicly disclosed Share buy-back program and its Board of Directors has approved the use of one or more accelerated share repurchase transactions to effect the Share buy-back program.

 

(d)           Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that neither Seller nor any of its affiliates is making any representations or warranties with respect to the treatment of the Transaction under any accounting standards including, but not limited to, 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.

 

(e)           As of the Trade Date, Counterparty is in compliance with its reporting obligations under the Exchange Act and its most recent Annual Report on Form 10-K, together with all reports subsequently filed by it pursuant to the Exchange Act, taken together and as amended and supplemented to the date of this representation, do not, as of their respective filing dates, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(f)            Counterparty shall report the Transaction to the extent required under the Exchange Act and the rules and regulations thereunder.

 

(g)           The Shares are not, and Counterparty will not engage in a “distribution” (as defined in Regulation M promulgated under the Exchange Act) of the Shares or of any security for which the Shares are a “reference security” (as defined in Regulation M promulgated under the Exchange Act) at any time during any Regulation M

 

9

 

Period (as defined below) for the Transaction. “Regulation M Period” means (i) the Relevant Period (as defined below) and (ii) the Share Termination Valuation Period, if any, and the Settlement Valuation Period, if any, for such Transaction. “Relevant Period” means the period commencing on the Trade Date for the Transaction and ending on the earlier of (i) the Scheduled Termination Date and (ii) the last Additional Relevant Day (as defined below) for such Transaction, or such earlier day as elected by Seller and communicated to Counterparty on such day (or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to “Special Provisions for Acquisition Transaction Announcements” below).  “Additional Relevant Day(s)” means the five Exchange Business Days immediately following the Calculation Period.

 

(h)           As of the Trade Date, the Prepayment Date, the Initial Share Delivery Date, the Settlement Date, and the date of any Second Settlement, Counterparty is not, and 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 a number of Shares with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of Counterparty’s incorporation and any contractual restrictions applicable to Counterparty or its assets.

 

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

 

(j)            Counterparty has not and will not enter into agreements similar to the Transaction described herein where any initial hedge period, calculation period, relevant period or settlement valuation period (each however defined) in such other transaction will overlap at any time (including as a result of extensions in such initial hedge period, calculation period, relevant period or settlement valuation period as provided in the relevant agreements) with any Relevant Period or, if applicable, any Settlement Valuation Period under this Confirmation.  In the event that the initial hedge period, relevant period, calculation period or settlement valuation period in any other similar transaction overlaps with any Relevant Period or, if applicable, or Settlement Valuation Period under this Confirmation as a result of any postponement of the Scheduled Termination Date or extension of the Settlement Valuation Period pursuant to “Valuation Disruption” above, Counterparty shall promptly amend such transaction to avoid any such overlap.

 

(k)           Counterparty shall deliver to Deutsche an opinion of counsel, dated as of the Effective Date and reasonably acceptable to Deutsche in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement and such other matters as Deutsche may reasonably request, and containing customary assumptions, qualifications and exceptions reasonably acceptable to Deutsche.

 

(l)            Counterparty received on October 3, 2011 a letter from Deutsche regarding FINRA Rule 5320 and does not object to the practices described in such letter.

 

4.             Regulatory Disruption.  In the event that Seller concludes, in its reasonable good faith discretion based on the advice of counsel, that it is appropriate with respect to any legal, regulatory or self-regulatory requirements or related policies and procedures, whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Seller (provided that such requirements, policies or procedures relate to legal or regulatory issues and are generally applicable in similar situations and applied to the Transaction in a non-discriminatory manner), for it to refrain from or decrease any market activity on any Scheduled Trading Day or Days during the Calculation Period or, if applicable, the Share Termination Valuation Period or the Settlement Valuation Period, Seller may by written notice to Counterparty elect to deem that a Market Disruption Event has occurred and will be continuing on such Scheduled Trading Day or Days.

 

5.             10b5-1 Plan.  Counterparty represents, warrants and covenants to Seller that:

 

(a)           Counterparty is entering into this Confirmation and the Transaction hereunder in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares.  Counterparty and Seller each acknowledges that it is the intent of the parties that the Transaction entered into under this Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of

 

10

 

Rule 10b5-1 and the Transaction entered into under this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c).

 

(b)           Counterparty will not seek to control or influence Seller’s decision to make any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under the Transaction entered into under this Confirmation, including, without limitation, Seller’s decision to enter into any hedging transactions.  Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Confirmation under Rule 10b5-1.

 

(c)           Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c).  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty or the Shares.

 

6.             Counterparty Purchases.  Counterparty (or any “affiliated purchaser” as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall not, without the prior written consent of Seller, directly or indirectly purchase any Shares (including by means of a derivative instrument), listed contracts on the Shares or securities that are convertible into, or exchangeable or exercisable for Shares (including, without limitation, any Rule 10b-18 purchases of blocks (as defined in Rule 10b-18)) during any Relevant Period or, if applicable, the Share Termination Valuation Period or the Settlement Valuation Period, except through Seller.  Notwithstanding the foregoing, Seller agrees that, commencing on the one month anniversary of the Effective Date and concluding on the final day of the Relevant Period or, if applicable, the Share Termination Valuation Period or the Settlement Valuation Period, Counterparty may, on each Exchange Business Day, purchase through Seller or its affiliate, the greater of (i) 20,000 Shares and (ii) a number of Shares equal to 2.5% of such Exchange Business Day’s trading volume in the Shares.  Counterparty represents and warrants to Seller that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs.

 

7.             Special Provisions for Merger Transactions.  Notwithstanding anything to the contrary herein or in the Equity Definitions:

 

(a) Counterparty agrees that it:

 

(i)       will not during the Relevant Period or, if applicable, the Share Termination Valuation Period or the Settlement Valuation Period for any Transaction make, or, to the extent it is in Counterparty’s reasonable control, permit to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction unless such public announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares;

 

(ii)      shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify Seller following any such announcement that such announcement has been made; and

 

(iii)     shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide Seller with written notice specifying (i) Counterparty’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement date that were not effected through Seller or its affiliates and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the announcement date.  Such written notice shall be deemed to be a certification by Counterparty to Seller that such information is true and correct.  In addition, Counterparty shall promptly notify Seller of the earlier to occur of the completion of such transaction and the completion of the vote by

 

11

 

target shareholders.  Counterparty acknowledges that any such notice may cause the terms of the Transaction to be adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 5 above.

 

(b)           Upon the public announcement of any Merger Transaction, without prejudice to the provisions in Sections 12.2 or 12.3 of the Equity Definitions relating to the occurrence of a Merger Event or the announcement or occurrence of a Tender Offer or Section 8 below, Seller in its commercially reasonable discretion may (i) make adjustments to the terms of the Transaction, including, without limitation, the Scheduled Termination Date or the Forward Price Adjustment Amount, and/or suspend the Calculation Period, any Share Termination Valuation Period and/or any Settlement Valuation Period as the Calculation Agent reasonably determines appropriate to account for the economic effect on the Transaction of such announcement or (ii) treat the occurrence of such public announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transaction hereunder as the Affected Transaction and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Calculation Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.

 

“Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

 

8.             Special Provisions for Acquisition Transaction Announcements.  (a) Without prejudice to the provisions in Sections 12.2 and 12.3 of the Equity Definitions relating to the occurrence of a Merger Event or the announcement or occurrence of a Tender Offer or Section 7 above, (A) if an Acquisition Transaction Announcement occurs on or after the Trade Date and on or prior to the scheduled First Acceleration Date for the Transaction, then (i) the Calculation Agent shall make adjustments to the terms of this Transaction as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such Acquisition Transaction Announcement (and, for the avoidance of doubt, in such event the Number of Shares to be Delivered may be reduced below zero); and (ii) the First Acceleration Date shall be the date of such Acquisition Transaction Announcement and (B)  if a Friendly Transaction Announcement occurs after the scheduled First Acceleration Date and on or prior to the date that is one Settlement Cycle immediately following the Termination Date for the Transaction (the “First Settlement Date”), then the Calculation Agent shall make adjustments to the terms of this Transaction as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such Friendly Transaction Announcement (and, for the avoidance of doubt, in such event the Number of Shares to be Delivered may be reduced below zero).  If a Friendly Transaction Announcement occurs after the First Settlement Date for the Transaction or any earlier date of termination or cancellation of the Transaction pursuant to Section 6 of the Agreement or Article 12 of the Equity Definitions, then a second settlement of the Transaction (a “Second Settlement”) shall occur (notwithstanding such earlier termination or cancellation) with a Number of Shares to be Delivered equal to the lesser of (i) zero and (ii) (x) the Number of Shares to be Delivered reflecting any adjustments determined pursuant to subclause (B) of the first sentence of this paragraph as if such Friendly Transaction Announcement occurred prior to such First Settlement Date minus (y) the Number of Shares to be Delivered previously determined pursuant to Section 1 of this Confirmation (provided that in the case of a Second Settlement occurring after such an early termination or cancellation, a Number of Shares to be Delivered shall not be determined and instead a Forward Cash Settlement Amount will be determined as provided in Annex A).  If the Number of Shares to be Delivered for any settlement of any Transaction is a negative number as a result of the application of this Section 8, or if a Second Settlement is to occur pursuant to the immediately preceding sentence, then the terms of the Counterparty Settlement Provisions in Annex A shall apply.

 

(b)           “Friendly Transaction Announcement” means (i) an Acquisition Transaction Announcement by Counterparty or its board of directors prior to the First Settlement Date or any earlier date of termination or cancellation of the relevant Transaction pursuant to Section 6 of the Agreement or Article 12 of the Equity Definitions (such date, the “Actual Termination Date”), (ii) (A) an announcement by Counterparty or its board of directors prior to the date three months following the Scheduled Termination Date that an Acquisition Transaction that is the subject of an Acquisition Transaction Announcement occurring prior to the Actual Termination Date has been approved, agreed to, recommended by or otherwise consented to by Counterparty or its board of directors or (B) consummation prior to the date three months following the Scheduled Termination Date of an Acquisition Transaction that is the subject of an Acquisition Transaction Announcement occurring prior to the Actual Termination Date, or (iii) where Counterparty or its board of directors has a legal obligation to make a

 

12

 

recommendation to its shareholders in respect of any such Acquisition Transaction prior to the date three months following the Scheduled Termination Date, the absence of a recommendation that its shareholders reject such transaction.

 

(c)           “Acquisition Transaction Announcement” means (i) the announcement of an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, (iii) the announcement of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include (as stated in such announcement), an Acquisition Transaction, or (iv) any other announcement that in the reasonable judgment of the Calculation Agent is reasonably likely to result in an Acquisition Transaction. For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to any public announcement whether made by the Issuer or a third party.

 

(d)           “Acquisition Transaction” means (i) any Merger Event (for purposes of this definition, the definition of Merger Event shall be read with the references therein to “100%” being replaced by “20%” and references to “50%” being replaced by “75%” and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer (as modified in clause (i) of the proviso opposite the caption “Tender Offer” in Section 1 above) or Merger Transaction or any other transaction involving the merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction with respect to Counterparty, (iv) any acquisition by Counterparty or any of its subsidiaries where the aggregate consideration to be transferred by Counterparty or its subsidiaries at the closing of the transaction exceeds 50% of the market capitalization of Counterparty as calculated immediately prior to such announcement, (v) any lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration to be received by Counterparty or its subsidiaries at the closing of the transaction exceeds 20% of the market capitalization of Counterparty as calculated immediately prior to such announcement and (vi) any transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).

 

9.                                       Acknowledgments.  (a) The parties hereto intend for:

 

(i)       the Transaction to be a “securities contract” as defined in Section 741(7) of the Bankruptcy Code and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 555, 556, 560 and 561 of the Bankruptcy Code;

 

(ii)      the Agreement to be a “master netting agreement” as defined in Section 101(38A) of the Bankruptcy Code;

 

(iii)     a party’s right to liquidate, terminate or accelerate the Transaction, net out or offset termination values or payment amounts, and to exercise any other remedies upon the occurrence of any Event of Default or Termination Event under the Agreement with respect to the other party or any Extraordinary Event that results in the termination or cancellation of the Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code); and

 

(iv)    all payments for, under or in connection with the Transaction, all payments for the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in the Bankruptcy Code).

 

(b)           Counterparty acknowledges that:

 

13

 

(i)          during the term of the Transaction, Seller and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to such Transaction;

 

(ii)         Seller and its affiliates may also be active in the market for the Shares other than in connection with hedging activities in relation to the Transaction;

 

(iii)        Seller shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the VWAP Price;

 

(iv)        any market activities of Seller and its affiliates with respect to the Shares may affect the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in a manner that may be adverse to Counterparty; and

 

(v)         the Transaction is a derivatives transaction in which it has granted Seller an option;  Seller may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of such Transaction.

 

10.           Amendments to Equity Definitions.

 

(i)       Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “an economic effect on the Transaction”;

 

(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 or Share Forward Transaction, then following the announcement or occurrence of any Potential Adjustment Event, the Calculation Agent will determine whether such Potential Adjustment Event has an economic effect on the Transaction and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and clause (B) thereof is hereby amended by inserting, after “the Forward Price,” “Cap Price,” “the Floor Price,” 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, 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 “a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “an economic effect on the Transaction”;

 

(iv)    Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (I) 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); (II) replacing “will lend” with “lends” in subsection (B); and (III) 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

 

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

 

14

 

11.           Credit Support Documents.  The parties hereto acknowledge that the Transaction hereunder is not secured by any collateral that would otherwise secure the obligations of Counterparty herein or pursuant to the Agreement.

 

12.           Set-off.

 

(i)    The parties agree to amend Section 6 of the Agreement by deleting Section 6(f) thereto and replacing such section with the following:

 

“(f)  Upon the occurrence of an Event of Default or Termination Event with respect to a party who is the Defaulting Party or the Affected Party (“X”), the other party (“Y”) will have the right (but not be obliged) without prior notice to X or any other person to set-off or apply any obligation of X owed to Y (or any Affiliate of Y) (whether or not matured or contingent and whether or not arising under the Agreement, and regardless of the currency, place of payment or booking office of the obligation) against any obligation of Y (or any Affiliate of Y) owed to X (whether or not matured or contingent and whether or not arising under the Agreement, and regardless of the currency, place of payment or booking office of the obligation).  Y will give notice to the other party of any set-off effected under this Section 6(f).

 

Amounts (or the relevant portion of such amounts) subject to set-off may be converted by Y into the Termination Currency at the rate of exchange at which such party would be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such currency.  If any obligation is unascertained, Y may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained.  Nothing in this Section 6(f) shall be effective to create a charge or other security interest.  This Section 6(f) shall be without prejudice and in addition to any right of set-off, combination of accounts, lien or other right to which any party is at any time otherwise entitled (whether by operation of law, contract or otherwise).”

 

(ii)   Notwithstanding anything to the contrary in the foregoing, Seller agrees not to set off or net amounts due from Counterparty with respect to any Transaction against amounts due from Seller to Counterparty with respect to contracts or instruments that are not Equity Contracts.  “Equity Contract” means any transaction or instrument that does not convey to Seller rights, or the ability to assert claims, that are senior to the rights and claims of common stockholders in the event of Counterparty’s bankruptcy.

 

13.           Delivery of Shares.  Notwithstanding anything to the contrary herein, Seller may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date.

 

14.           Share Termination Alternative.  If either party would owe the other party any amount pursuant to Article 12 of the Equity Definitions or Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Counterparty shall have the right, in its sole discretion, to satisfy or to require Seller to satisfy, as the case may be, any such Payment Obligation, in whole or in part, by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Seller, confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M. New York City time on the Early Termination Date or date on which the Transaction is terminated (“Notice of Share Termination”); provided that if Seller would owe Counterparty the Payment Obligation and Counterparty does not elect to require Seller to satisfy such Payment Obligation by the Share Termination Alternative in whole, Seller shall have the right, in its sole discretion, to elect to satisfy any portion of such Payment Obligation that Counterparty has not so elected by the Share Termination Alternative, notwithstanding Counterparty’s failure to elect or election to the contrary; and provided further that (A) Counterparty shall not have the right to so elect (but, for the avoidance of

 

15

 

doubt, Seller shall have the right to so elect) in the event of (i) an Insolvency, a Nationalization, a Merger Event or a Tender Offer, in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash or (ii) an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, which Event of Default or Termination Event resulted from an event or events within Counterparty’s control and (B) Counterparty may only so elect if Counterparty represents and warrants to Seller in writing on the date it notifies Seller of its election that, as of such date, Counterparty is not aware of any material non-public information concerning Counterparty or the Shares and is so electing in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.  Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the Early Termination Date or date on which the Transaction is terminated with respect to the Payment Obligation or such portion of the Payment Obligation for which the Share Termination Alternative has been elected (the “Applicable Portion”).  For the avoidance of doubt, the Calculation Agent shall not include in the Payment Obligation the economic effect of any Extraordinary Dividend so declared to holders of record as of any date occurring prior the Settlement Date or, if the provisions of Annex A apply, the Cash Settlement Payment Date.

 

	
Share   Termination Alternative:
    	
 
    	
Applicable   and means, if delivery pursuant to the Share Termination Alternative is owed   by Seller, that Seller shall deliver to Counterparty the Share Termination   Delivery Property on the date on which the Payment Obligation would otherwise   be due pursuant to Article 12 of the Equity Definitions or   Section 6(d)(ii) of the Agreement, as applicable, or such later   date as the Seller may reasonably determine (the “Share   Termination Payment Date”), in satisfaction of the Payment   Obligation or the Applicable Portion, as the case may be. If delivery   pursuant to the Share Termination Alternative is owed by Counterparty,   paragraphs 2 through 7 of Annex A shall apply as if such delivery were a settlement of the   Transaction to which Net Share Settlement (as defined in Annex A) applied,   the Cash Settlement Payment Date were the Early Termination Date, the Forward   Cash Settlement Amount were zero (0) minus   the Payment Obligation (or the Applicable Portion, as the case may be) owed   by Counterparty, and “Shares” as used in Annex A were replaced by “Share   Termination Delivery Units.”
    
	
 
    	
 
    	
 
    
	
Share   Termination Delivery Property:
    	
 
    	
A   number of Share Termination Delivery Units, as calculated by the Calculation   Agent, equal to the Payment Obligation (or the Applicable Portion, as the   case may be) divided by the Share   Termination Unit Price. The Calculation Agent shall adjust the Share   Termination Delivery Property by replacing any fractional portion 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:
    	
 
    	
Either   (x) 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 or (y) an appropriately weighted   average of the values of such property over a valuation period reasonably   selected by Seller in good faith and a commercially reasonable manner following   the relevant Early Termination Date or date on which the Transaction is   terminated (the “Share Termination   Valuation Period”), at Seller’s election, in each case such value   or average of values to be determined by the Calculation Agent by   commercially reasonable means and notified by the Calculation Agent to the   parties prior to the Share Termination Payment Date.
    
	
 
    	
 
    	
 
    
	
Share   Termination Delivery Unit:
    	
 
    	
In   the case of a Termination Event, Event of Default, Delisting or Additional   Disruption Event, one Share or, in the case of an Insolvency,   Nationalization, Merger Event, Announcement Date 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
    

 

16

 

	
 
    	
 
    	
other   consideration in lieu of fractional amounts of any securities) in such   Insolvency, Nationalization, Merger Event or Tender Offer. If such   Insolvency, Nationalization, Merger Event or Tender Offer involves a choice   of consideration to be received by holders, such holder shall be deemed to   have elected to receive the maximum possible amount of cash.
    
	
 
    	
 
    	
 
    
	
Failure   to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Other applicable provisions:
    	
 
    	
If Share Termination Alternative is applicable, the provisions of   Sections 9.8, 9.9, 9.10, 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) and 9.12 of the Equity   Definitions will be applicable as if “Physical Settlement” applied to the   Transaction, except that all references to “Shares” shall be read as   references to “Share Termination Delivery Units”.
    

 

15.           Calculations and Payment Date upon Early Termination.  The parties acknowledge and agree that in calculating a Close-out Amount pursuant to Section 6 of the Agreement Seller may (but need not) in good faith and using commercially reasonable discretion determine losses (or gains) without reference to actual losses (or gains) incurred but based on expected losses (or gains) assuming a commercially reasonable (including without limitation with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss (or gain)  to avoid awaiting the delay associated with closing out any hedge or related trading position in a commercially reasonable manner prior to or sooner following the designation of an Early Termination Date.  Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement will be payable on the day that notice of the amount payable is effective; provided that if Counterparty elects to receive Shares or Share Termination Delivery Units in accordance with Section 14, such Shares or Share Termination Delivery Units shall be delivered on a date selected by Seller as promptly as practicable.

 

16.           Additional Termination Provisions.  Notwithstanding anything to the contrary in Section 6 of the Agreement, an Additional Termination Event will occur (with Counterparty as the sole Affected Party and the Transaction to which this Confirmation relates as the sole Affected Transaction) if the closing price of the Shares on the Exchange for any two consecutive Exchange Business Days during the period from, but excluding, the Trade Date to, and including, the First Acceleration Date is below the Termination Price (as set forth in Annex B), and in such case Deutsche may, by not more than 20 days notice to Counterparty and notwithstanding any subsequent closing price of the Shares on the Exchange, designate a day not earlier than the day such notice is effective as the “Early Termination Date” for purposes of the Agreement.

 

17.           Early Unwind.  In the event the sale of Convertible Notes is not consummated with the initial purchaser thereof for any reason by the close of business in New York on October 17, 2011 (the “Early Unwind Date”), the Transaction shall, unless otherwise agreed by the parties, automatically terminate (the “Early Unwind”) on the Early Unwind Date and (a) the Transaction and all of the respective rights and obligations of Seller and Counterparty under the Transaction shall be cancelled and terminated and (b) 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 the other party arising out of and to be performed in connection with the Transaction either prior to, on or after the Early Unwind Date; provided that, other than in cases involving a breach by Deutsche or an affiliate thereof of the Purchase Agreement, dated as of October 11, 2011, between Counterparty and Deutsche Bank Securities Inc. as representative of the initial purchaser party to such agreement, Counterparty shall pay to Seller an amount in cash equal to the aggregate amount of losses, costs and expenses relating to the unwinding of the derivatives and other hedging activities of Seller or its affiliates in respect of the Transaction (including market losses incurred in disposing of any Shares purchased by Seller or its affiliates in connection with such hedging activities).  The amount payable by Counterparty shall be Seller’s (or its affiliates) actual unwind cost of such derivatives and other hedging activities as Seller notifies Counterparty in writing, together with reasonable detail as to Seller’s calculation of such costs (such amount, “Seller’s Unwind Costs”), and shall be paid in immediately

 

17

 

available funds on the Early Unwind Date.  In lieu of delivering cash to the Seller pursuant to the immediately preceding sentence, Counterparty may elect to deliver to Seller a number of Shares with a value, as determined by the Calculation Agent, equal to Seller’s Unwind Costs (such Shares, the “Early Unwind Shares”) and, in which event, the parties shall enter into customary and commercially reasonable documentation relating to the registered or exempt resale of such Shares.  Seller and Counterparty represent and acknowledge to the other that, subject to the proviso included in the preceding sentence, upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.

 

18.           Delivery of Cash.  For the avoidance of doubt, nothing in this Confirmation shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the Transactions contemplated by this Confirmation following payment by Counterparty of the relevant Prepayment Amount, except in circumstances where the required cash settlement thereof is permitted for classification of the contract as equity by ASC Topic 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity as in effect on the relevant Trade Date (including, without limitation, where Counterparty so elects to deliver cash or fails timely to elect to deliver Shares or Share Termination Delivery Units in respect of the settlement of such Transactions).

 

19.           Claim in Bankruptcy.  Seller 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.

 

20.           Governing Law.  The Agreement, this Confirmation and all matters arising in connection with the Agreement and this Confirmation shall be governed by, and construed and enforced in accordance with, the laws of the State of New York (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law). 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.

 

19.           Waiver of Trial by Jury.  EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS CONFIRMATION, THE AGREEMENT OR THE TRANSACTION.

 

20.           Offices.

 

(a)           The Office of Seller is London.

 

(b)           The Office of Counterparty is Silver Spring, Maryland.

 

21.           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 any Transaction between Deutsche and Counterparty shall be transmitted exclusively through DBSI.

 

22.           Matters Related to Agent.  Each party agrees and acknowledges that (i) Agent acts solely as agent on a disclosed basis with respect to the Transaction, and (ii) Agent has no obligation, by guaranty, endorsement or otherwise, with respect to the obligations of either Counterparty or Deutsche hereunder, either with respect to the delivery of cash or Shares, either at the beginning or the end of the Transaction.  In this regard, each of Counterparty and Deutsche acknowledges and agrees to look solely to the other for performance hereunder, and not to Agent.

 

18

 

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

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning to Deutsche a facsimile of the fully-executed Confirmation to Deutsche at 44 113 336 2009. Originals shall be provided for your execution upon your request.

 

We are very pleased to have executed the Transaction with you and we look forward to completing other transactions with you in the near future.

 

 

Very truly yours,

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

	
By:
    	
/s/   Michael Sanderson
    	
 
    
	
 
    	
Name:
    	
Michael   Sanderson
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Lars Kestner
    	
 
    
	
 
    	
Name:
    	
Lars   Kestner
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
DEUTSCHE   BANK SECURITIES INC.,
    	
 
    
	
acting   solely as Agent in connection with this Transaction
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Michael Sanderson
    	
 
    
	
 
    	
Name:
    	
Michael   Sanderson
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Lars Kestner
    	
 
    
	
 
    	
Name:
    	
Lars   Kestner
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Counterparty hereby agrees to, accepts and   confirms the terms of the foregoing as of the Trade Date.
    
	
 
    	
 
    
	
UNITED THERAPEUTICS CORPORATION
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   John Ferrari
    	
 
    
	
 
    	
Name:
    	
John   Ferrari
    	
 
    
	
 
    	
Title:
    	
CFO
    	
 
    

 

[Signature Page to Collared ASR]

 

 

ANNEX A

 

COUNTERPARTY SETTLEMENT PROVISIONS

 

1.                                       The following Counterparty Settlement Provisions shall apply to the extent indicated under the Confirmation:

 

	
Settlement Currency:
    	
USD
    
	
 
    	
 
    
	
Settlement Method Election:
    	
Applicable;   provided that   (i) Section 7.1 of the Equity Definitions is hereby amended by   deleting the word “Physical” in the sixth line thereof and replacing it with   the words “Net Share” and (ii) the Electing Party may make a settlement   method election only if the Electing Party represents and warrants to Seller   in writing on the date it notifies Seller of its election that, as of such   date, the Electing Party is not aware of any material non-public information   concerning Counterparty or the Shares and is electing the settlement method   in good faith and not as part of a plan or scheme to evade compliance with   the federal securities laws.
    
	
 
    	
 
    
	
Electing Party:
    	
Counterparty
    
	
 
    	
 
    
	
Settlement Method Election Date:
    	
The   earlier of (i) the Scheduled Termination Date and (ii) the second   Exchange Business Day immediately following the Accelerated Termination Date   (in which case the election under Section 7.1 of the Equity Definitions   shall be made no later than 10 minutes prior to the open of trading on the   Exchange on such second Exchange Business Day), as the case may be; provided that if a Friendly Transaction Announcement   occurs after the First Settlement Date, the Settlement Method Election Date   for the Second Settlement shall be the date of the Friendly Transaction   Announcement.
    
	
 
    	
 
    
	
Default Settlement Method:
    	
Cash   Settlement
    
	
 
    	
 
    
	
Forward Cash Settlement Amount:
    	
The   Number of Shares to be Delivered multiplied   by the Settlement Price; provided that   in the case of a Second Settlement occurring after an early termination or   cancellation of the Transaction pursuant to Section 6 of the Agreement   or Article 12 of the Equity Definitions, the Forward Cash Settlement   Amount shall equal the lesser  of (i) zero and (ii)(x) the Payment Obligation   that would have been calculated for such early termination or cancellation if   the adjustments by the Calculation Agent to account for the economic effect   on the Transaction had been given effect prior to such early termination or   cancellation minus (y) the actual   Payment Obligation calculated for such early termination or cancellation.
    
	
 
    	
 
    
	
Settlement Price:
    	
The   average of the VWAP Prices (or, in the case of a Second Settlement, the   Relevant Prices) for the Exchange Business Days in the Settlement Valuation   Period, subject to Valuation Disruption as specified in the Confirmation or,   in the case of a 
    

 

A-1

 

	
 
    	
Second   Settlement, subject to Section 6.6(a) of the Equity Definitions as   if such dates were Valuation Dates.
    
	
 
    	
 
    
	
Settlement Valuation Period:
    	
A   number of Scheduled Trading Days selected by Seller in its reasonable   discretion, beginning on the Scheduled Trading Day immediately following the   earlier of (i) the Scheduled Termination Date or (ii) the Exchange   Business Day immediately following the Termination Date or, in the case of a   Second Settlement, the date of the Friendly Transaction Announcement.
    
	
 
    	
 
    
	
Cash Settlement:
    	
If   Cash Settlement is applicable, then Buyer shall pay to Seller the absolute   value of the Forward Cash Settlement Amount on the Cash Settlement Payment   Date.
    
	
 
    	
 
    
	
Cash Settlement Payment Date:
    	
The   date one Settlement Cycle following the last day of the Settlement Valuation   Period.
    
	
 
    	
 
    
	
Net Share Settlement Procedures:
    	
If   Net Share Settlement is applicable, Net Share Settlement shall be made in   accordance with paragraphs 2 through 7 below.
    

 

2.                                       Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in either case with a value equal to the absolute value of the Forward Cash Settlement Amount, with such Shares’ value based on the value thereof to Seller (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount), in each case as determined by the Calculation Agent.

 

3.                                       Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above if:

 

(a)                                  a registration statement covering public resale of the Registered Settlement Shares by Seller (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including any prospectus supplement thereto, the “Prospectus”) shall have been delivered to Seller, in such quantities as Seller shall reasonably have requested, on or prior to the date of delivery;

 

(b)                                 the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be satisfactory to Seller;

 

(c)                                  as of or prior to the date of delivery, Seller and its agents shall have been afforded 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 and by similar companies and the results of such investigation are satisfactory to Seller, in its discretion; and

 

(d)                                 as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with Seller in connection with the public resale of the Registered Settlement Shares by Seller substantially similar to underwriting agreements customary for underwritten offerings of equity securities of similar size and by similar companies, in form and substance reasonably satisfactory to Seller, which Underwriting

 

A-2

 

Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Seller and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.

 

4.                                       If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above:

 

(a)                                  all Unregistered Settlement Shares shall be delivered to Seller (or any affiliate of Seller designated by Seller) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof;

 

(b)                                 as of or prior to the date of delivery, Seller and any potential purchaser of any such shares from Seller (or any affiliate of Seller designated by Seller) identified by Seller shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty 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);

 

(c)                                  as of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with Seller (or any affiliate of Seller designated by Seller) in connection with the private placement of such shares by Counterparty to Seller (or any such affiliate) and the private resale of such shares by Seller (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities of similar size by similar companies, in form and substance commercially reasonably satisfactory to Seller, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Seller and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for the payment by Counterparty of all reasonable fees and expenses of Seller (or an affiliate thereof) in connection with such resale, including all reasonable fees and expenses of counsel for Seller, and shall contain representations, warranties, covenants and agreements of Counterparty reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and

 

(d)                                 in connection with the private placement of such shares by Counterparty to Seller (or any such affiliate) and the private resale of such shares by Seller (or any such affiliate), Counterparty shall, if so requested by Seller, prepare, in cooperation with Seller, a private placement memorandum in form and substance reasonably satisfactory to Seller.

 

5.                                       Seller, itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the “Settlement Shares”) delivered by Counterparty to Seller pursuant to paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by Seller, is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”).  If the proceeds of any sale(s) made by Seller, the Selling Agent or any underwriter(s), net of any fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, Seller will refund, in USD, such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, Seller shall return to Counterparty on that date such unsold Shares.

 

6.                                       If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement Amount being the “Shortfall” and

 

A-3

 

the date on which such determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to Seller, through the Selling Agent, a notice of Counterparty’s election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares.  If Counterparty elects to deliver to Seller additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall.  Such Makewhole Shares shall be sold by Seller in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Counterparty shall, at its election, either make such cash payment or deliver to Seller further Makewhole Shares until such Shortfall has been reduced to zero.

 

7.                                       Notwithstanding the foregoing or any provision in this Confirmation, in no event shall the aggregate number of Settlement Shares, Makewhole Shares or Early Unwind Shares be greater than the Reserved Shares minus the amount of any Shares actually delivered by Counterparty under any other Transaction(s) under this Confirmation (the result of such calculation, the “Capped Number”).  Counterparty represents and warrants (which 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 Shares determined according to the following formula:

 

A – B

 

Where            A = the number of authorized but unissued shares of the Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and

 

B = the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than the Transaction in the Shares under this Confirmation) with all third parties that are then currently outstanding and unexercised.

 

“Reserved Shares” means initially, 9,483,868 Shares.

 

A-4

 

ANNEX B

 

The Forward Price Adjustment Amount, Scheduled Termination Date, First Acceleration Date, Cap Price, Floor Price, Initial Shares and Termination Price are set forth below.

 

	
Forward Price Adjustment Amount:
    	
[***]
    
	
 
    	
 
    
	
Scheduled Termination Date:
    	
[***]
    
	
 
    	
 
    
	
First Acceleration Date:
    	
[***]
    
	
 
    	
 
    
	
Cap Price:
    	
[***]
    
	
 
    	
 
    
	
Floor Price:
    	
[***]
    
	
 
    	
 
    
	
Initial Shares:
    	
[***]
    
	
 
    	
 
    
	
Termination Price:
    	
[***]
    

 

B-1

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