Document:

Confirmation of Issue Warrant Transaction

 Exhibit 10.3 
 EXECUTION COPY 
 Opening Transaction 
  

			
		
	 To:
	 	ViroPharma Incorporated, 397 Eagleview Boulevard, Exton, Pennsylvania 19341
		
	 A/C:
	 	[Insert Account Number]
		
	 From:
	 	 Credit Suisse International
 One Cabot
Square
 London E14 4QJ
 England

		
	 Re: 
	 	Issuer Warrant Transaction
		
	 Ref. No:
	 	[Insert Reference Number]
		
	 Date:
	 	March 20, 2007

  

 Dear Sir(s): 
 The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of
the above-referenced transaction entered into on the Trade Date specified below (the “Transaction”) between Credit Suisse International (“Dealer”) represented by Credit Suisse, New York branch
(“Agent”) as its agent, and ViroPharma Incorporated (“Issuer”). This communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. 
 1. This Confirmation is subject to, and incorporates, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the
“2000 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2000 Definitions, the “Definitions”), in each
case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern. For purposes of
the Equity Definitions, each reference herein to a Warrant shall be deemed to be a reference to a Call Option or an Option, as context requires. 
 Each party is hereby advised, and each such party acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial transactions and has taken other material actions in reliance upon the parties’
entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below. 
 This Confirmation evidences a
complete and binding agreement between Dealer and Issuer as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master
Agreement as if Dealer and Issuer had executed an agreement in such form on the date hereof (but without any Schedule except for (i) the election of Loss and Second Method and US Dollars (“USD”) as the Termination Currency,
(ii) the replacement of the word “third” in the last line of Section 5(a)(i) with the word “first” and (iii) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to Issuer
with a “Threshold Amount” of USD10 million). 
 All provisions contained in, or incorporated by reference to, the Agreement will
govern this Confirmation except as expressly modified herein. In the event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern. 

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

 

			
		
	Trade Date:	 	March 20, 2007
		
	Effective Date:	 	March 26, 2007, or such other date as agreed between the parties, subject to Section 8(k) below
		
	Components:	 	The Transaction will be divided into individual Components, each with the terms set forth in this Confirmation, and, in particular, with the Number of Warrants and Expiration Date set forth
in this Confirmation. The payments and deliveries to be made upon settlement of the Transaction will be determined separately for each Component as if each Component were a separate Transaction under the Agreement.
		
	Warrant Style:	 	European
		
	Warrant Type:	 	Call
		
	Seller:	 	Issuer
		
	Buyer:	 	Dealer
		
	Shares:	 	The Common Stock of Issuer, par value USD0.002 per share (Ticker Symbol: “VPHM”).
		
	Number of Warrants:	 	For each Component, as provided in Annex A to this Confirmation.
		
	Warrant Entitlement:	 	One Share per Warrant
		
	Strike Price:	 	USD24.92
		
	Premium:	 	USD46,777,500.00 (Premium per Warrant USD5.23)
		
	Premium Payment Date:	 	The Effective Date
		
	Exchange:	 	The NASDAQ Stock Market
		
	Related Exchange:	 	All Exchanges

 Procedures for Exercise: 
  

	
	    In respect of any Component:

  

			
	Expiration Time:	 	Valuation Time
		
	Expiration Date:	 	As provided in Annex A to this Confirmation (or, if such date is not a Scheduled Trading Day, the next following Scheduled Trading Day that is not already an Expiration Date for
another Component); provided that if that date is a Disrupted Day, the Expiration Date for such Component shall be the first succeeding Scheduled Trading Day that is not a Disrupted Day and is not or is not deemed to be an Expiration Date in respect
of any other Component of the Transaction hereunder; and provided further that if the Expiration Date has not occurred pursuant to

  

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	 	 	the preceding proviso as of the Final Disruption Date, the Final Disruption Date
shall be the Expiration Date (irrespective of whether such date is an Expiration
Date in respect of any
other Component for the Transaction). “Final Disruption
Date” means September 19, 2017. Notwithstanding the foregoing and anything to
the contrary in the Equity Definitions, if a Market Disruption Event occurs on
any
Expiration Date, the Calculation Agent may determine that such Expiration Date
is a Disrupted Day only in part, in which case the Calculation Agent shall make
adjustments to the number of Warrants for the relevant Component for which
such
day shall be the Expiration Date and shall designate the Scheduled Trading Day
determined in the manner described in the immediately preceding sentence as the
Expiration Date for the remaining Warrants for such Component. Section 6.6
of
the Equity Definitions shall not apply to any Valuation Date occurring on an
Expiration Date.
		
	Market Disruption Event:	 	Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “during the one hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in
Valuation Time or Knock-out Valuation Time, as the case may be,” in clause (ii) thereof.
		
	Automatic Exercise:	 	Applicable; and means that the Number of Warrants for the corresponding Expiration Date will be deemed to be automatically exercised at the Expiration Time on such Expiration Date unless
Buyer notifies Seller (by telephone or in writing) prior to the Expiration Time on such Expiration Date that it does not wish Automatic Exercise to occur, in which case Automatic Exercise will not apply to such Expiration Date.
		
	Issuer’s Telephone Number and Telex and/or Facsimile Number and Contact Details for purpose of Giving Notice:	 	Attn: Chief Financial Officer
		 	Telephone: (610) 458 7300
		 	Facsimile: (610) 458 7380
		
		 	With a copy to:
		
		 	Attn: General Counsel
		 	Facsimile: (610) 458 7380

 Settlement Terms: 
  

	
	    In respect of any Component:

  

			
	Settlement Currency:	 	USD
		
	Net Share Settlement:	 	On each Settlement Date, Issuer shall deliver to Dealer a number of Shares equal to the Number of Shares to be Delivered for such Settlement Date to

  

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		 	the account specified by Dealer and cash in lieu of any fractional Shares valued at the Relevant Price on the Valuation Date corresponding to such Settlement Date. If, in the reasonable
opinion of Issuer or Dealer based on advice of counsel, for any reason, the Shares deliverable upon Net Share Settlement would not be immediately freely transferable by Dealer under Rule 144(k) under the Securities Act of 1933, as amended (the
“Securities Act”), then Dealer may elect to either (x) accept delivery of such Shares notwithstanding any restriction on transfer or (y) have the provisions set forth in Section 8(b) below apply.
		
		 	The Number of Shares to be Delivered shall be delivered by Issuer to Dealer no later than 12:00 noon (local time in New York City) on the relevant Settlement Date.
		
	Number of Shares to be Delivered:	 	In respect of any Exercise Date, subject to the last sentence of Section 9.5 of the Equity Definitions, the product of (i) the number of Warrants exercised or deemed exercised on such
Exercise Date, (ii) the Warrant Entitlement and (iii) (A) the excess of the VWAP Price on the Valuation Date occurring on such Exercise Date over the Strike Price (or, if no such excess, zero) divided by (B) such VWAP Price.
		
	VWAP Price:	 	For any Valuation Date, the NASDAQ Volume Weighted Average Price per share of Shares for the regular trading session (including any extensions thereof) of the Exchange on such Valuation Date
(without regard to pre-open or after hours trading outside of such regular trading session), as published by Bloomberg at 4:15 p.m. New York City time (or 15 minutes following the end of any extension of the regular trading session) on such
Valuation Date, on Bloomberg page “VPHM.Q <Equity> AQR” (or any successor thereto) (or if such published volume weighted average price is unavailable or is manifestly incorrect, the market value of one Share on such Valuation Date,
as determined by the Calculation Agent using a volume weighted method).
		
	Other Applicable Provisions:	 	The provisions of Sections 9.1(c), 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 as a result of the fact that Seller is the Issuer of the Shares) and 9.12 of the Equity Definitions will be applicable, as if
“Physical Settlement” applied to the Transaction.

 Adjustment: 
  

	
	    In respect of any Component:

  

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	Method of Adjustment:	 	Calculation Agent Adjustment; provided that in respect of an Extraordinary Dividend, “Calculation Agent Adjustment” shall be as described in the provision below.
		
	Extraordinary Dividend:	 	Any cash dividend or distribution on the Shares with an ex dividend date occurring on or after the Trade Date and on or prior to the Expiration Date.
		
	Extraordinary Dividend Adjustment:	 	If at any time during the period from and including the Trade Date, to but excluding the last Expiration Date, an ex-dividend date for an Extraordinary Dividend occurs, then the Calculation
Agent will make adjustments to the Strike Price, the Number of Warrants, the Warrant Entitlement and/or any other variable relevant to the exercise, settlement, payment or other terms of the Transaction to preserve the fair value of the Transaction
to Buyer after taking into account such Extraordinary Dividend.

 Extraordinary Events: 
  

			
	Consequences of Merger Events:	 	

  

					
	(a)	 	Share-for-Share:	 	Modified Calculation Agent Adjustment
			
	(b)	 	Share-for-Other:	 	Cancellation and Payment (Calculation Agent Determination)
			
	(c)	 	Share-for-Combined:	 	Component Adjustment

  

			
	Tender Offer:	 	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

  

			
	Modified Calculation	 	
	Agent Adjustment:	 	If, in respect of any Merger Event or Tender Offer to which Modified Calculation Agent Adjustment applies, the adjustments to be made in accordance with Section 12.2(e)(i) or Section
12.3(d)(i), as the case may be, of the Equity Definitions would result in Issuer being different from the issuer of the Shares, then with respect to such Merger Event or Tender Offer, as a condition precedent to the adjustments contemplated in
Section 12.2(e)(i) or Section 12.3(d)(i), as the case may be, of
	 

  

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	 	 	the Equity Definitions, Issuer and the issuer of the Shares shall, prior to the
Merger Date or Tender Offer, as the case may be, have entered into such
documentation containing
representations, warranties and agreements relating to
securities law and other issues as requested by Buyer that Buyer has determined,
in its reasonable discretion, to be reasonably necessary or appropriate to allow
Buyer to continue as a
party to the Transaction, as adjusted under Section
12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity Definitions, and
to preserve its hedging or hedge unwind activities in connection with the
Transaction in a manner
compliant with applicable legal, regulatory or self-
regulatory requirements, or with related policies and procedures applicable to
Buyer, and if such conditions are not met or if the Calculation Agent determines
that no adjustment that it
could make under Section 12.2(e)(i) or Section
12.3(d)(i), as the case may be, of the Equity Definitions will produce a
commercially reasonable result, then the consequences set forth in Section
12.2(e)(ii) or Section 12.3(d)(ii), as the
case may be, of the Equity Definitions
shall apply.
		
	Reference Markets:	 	For the avoidance of doubt, and without limiting the generality of the foregoing provisions, any adjustment effected by the Calculation Agent pursuant to Section 12.2(e) and/or Section
12.3(d) of the Equity Definitions may be determined by reference to the adjustment(s) made in respect of Merger Events or Tender Offers, as the case may be, in the convertible bond market.
		
	Nationalization, Insolvency or Delisting:	 	Cancellation and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a
Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global
Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.
	
	Additional Disruption Events:

  

					
	(a)	 	Change in Law:	 	Applicable
			
	(b)	 	Failure to Deliver:	 	Applicable
			
	(c)	 	Insolvency Filing:	 	Applicable
			
	(d)	 	Hedging Disruption:	 	Applicable
			
	(e)	 	Increased Cost of Hedging:	 	Applicable
			
	(f)	 	Loss of Stock Borrow:	 	Applicable
			
		 	Maximum Stock Loan Rate:	 	1.00% per annum
			
	(g)	 	Increased Cost of Stock Borrow:	 	Applicable
			
		 	Initial Stock Loan Rate:	 	0.25% per annum

  

			
	Hedging Party:	 	Buyer
		
	Determining Party:	 	Buyer

  

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	Non-Reliance:	 	Applicable
		
	Agreements and Acknowledgments Regarding Hedging Activities:	 	Applicable
		
	Additional Acknowledgments:	 	Applicable
		
	 3.         Calculation Agent:
	 	Dealer.
		
	 4.         Account Details:
	 	

  

							
		  	Dealer Payment Instructions:
			
		  		  	 The Bank of New York, NY
 SWIFT:
IRVTUS3N
 Bank Routing: 021 000 018
 Account Name: Credit Suisse
International
 Account No.: 890-0360-968

  

					
	     Issuer Payment Instructions:	 	To be provided by Issuer.

  

							
		
	5.	  	Offices:
		
		  	The Office of Dealer for the Transaction is:
			
		  		  	 Credit Suisse International
 One Cabot
Square
 London E14 4QJ
 England

		
		  	The Office of Issuer for the Transaction is:
			
		  		  	 397 Eagleview Boulevard
 Exton, PA
19341

		
	6.	  	Notices: For purposes of this Confirmation:
			
	(a)	  		  	Address for notices or communications to Counterparty:
				
		  		  	To:	  	 ViroPharma Incorporated
 397 Eagleview
Boulevard
 Exton, PA 19341

				
		  		  	Attn:	  	Chief Financial Officer
		  		  	Telephone:	  	(610) 458 7300
		  		  	Facsimile:	  	(610) 458 7380
			
		  		  	With a copy to:
				
		  		  	Attn:	  	General Counsel
		  		  	 Facsimile:             
	  	(610) 458 7380
			
	(b)	  		  	Address for notices or communications to Dealer:
				
		  		  	To:	  	 Credit Suisse, New York branch
 Eleven Madison
Avenue
 New York, NY 10010-3629

				
		  		  	Telephone:	  	(212) 325 8676 / (212) 538 5306 / (212) 538 1193 / (212) 538 6886
		  		  	Facsimile:	  	(212) 325 8173
		
	7.	  	Representations, Warranties and Agreements:

  

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 (a) In addition to the representations and warranties in the Agreement and those contained elsewhere
herein, Issuer represents and warrants to and for the benefit of, and agrees with, Dealer as follows: 
 (i) On the Trade
Date, (A) none of Issuer and its officers and directors is aware of any material nonpublic information regarding Issuer or the Shares and (B) all reports and other documents filed by Issuer with the Securities and Exchange Commission
pursuant to the Exchange Act when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material
fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading. 
 (ii) Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer acknowledges that Dealer is not making any
representations or warranties with respect to the treatment of the Transaction under FASB Statements 128, 133 (as amended), 149 or 150, EITF Issue No. 00-19, 01-6 or 03-6 (or any successor issue statements) or under any accounting standards
including FASB’s Liabilities & Equity Project. 
 (iii) Prior to the Trade Date, Issuer shall deliver to Dealer
a resolution of Issuer’s board of directors authorizing the Transaction (including the issuance of any Convertible Preferred Shares as contemplated in Section 8(e) below) and such other certificate or certificates as Dealer shall
reasonably request. 
 (iv) Issuer is not entering into this Confirmation to create actual or apparent trading activity in the
Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

 (v) Issuer is not, and after giving effect to the transactions contemplated hereby will not be, required to register as an
“investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
 (vi) On the Trade
Date and the Premium Payment Date (A) the assets of Issuer at their fair valuation exceed the liabilities of Issuer, including contingent liabilities, (B) the capital of Issuer is adequate to conduct the business of Issuer and
(C) Issuer has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts mature. 
 (vii) Issuer shall not take any action to decrease the number of Available Shares below the Capped Number (each as defined below).

 (viii) The representations and warranties of Issuer set forth in Section 3 of the Agreement and Section 1 of the
Underwriting Agreement dated as of the Trade Date between Issuer and Goldman, Sachs & Co., as representative of the Underwriters party thereto (the “Underwriting Agreement”) are true and correct as of the Trade Date and the
Effective Date and are hereby deemed to be repeated to Dealer as if set forth herein. 
 (ix) Issuer understands no
obligations of Dealer to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any affiliate of Dealer or any governmental agency. 
 (x) (A) During the period starting on the first Expiration Date and ending on the last Expiration Date (the “Settlement
Period”), the Shares or securities that are convertible into, or exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted period,” as such term is defined in Regulation M under the Exchange Act
(“Regulation M”) and (B) Issuer shall not engage in any “distribution,” as such term is defined in Regulation M, other than a distribution meeting the requirements of the exceptions set forth in sections 101(b)(10)
and 102(b)(7) of Regulation M, until the second Exchange Business Day immediately following the Settlement Period. 
  

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 (xi) During the Settlement Period, neither Issuer nor any “affiliate” or
“affiliated purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument)
purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or
a depository share) or any security convertible into or exchangeable or exercisable for Shares, except through Dealer. 
 (b) Each of Dealer
and Issuer agrees and represents that it is an “eligible contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended. 
 (c) Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities
Act”), by virtue of Section 4(2) thereof. Accordingly, Dealer represents and warrants to Issuer that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total loss
of its investment and its investments in and liabilities in respect of the Transaction, which it understands are not readily marketable, are not disproportionate to its net worth, and it is able to bear any loss in connection with the Transaction,
including the loss of its entire investment in the Transaction, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for
its own account without a view to the distribution or resale thereof, (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this
Confirmation, the Securities Act and state securities laws, (v) its financial condition is such that it has no need for liquidity with respect to its investment in the Transaction and no need to dispose of any portion thereof to satisfy any
existing or contemplated undertaking or indebtedness and is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of the
Transaction. 
 (d) Each of Dealer and Issuer agrees and acknowledges that Dealer is a “financial institution,” “swap
participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The parties hereto 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 is a “settlement payment,” as
such term is defined in Section 741(8) 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 is a
“transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of
the Bankruptcy Code. 
 (e) Issuer shall deliver to Dealer an opinion of counsel, dated as of the Trade Date and reasonably acceptable to
Dealer in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement. 
 (f) Each party acknowledges and
agrees to be bound by the Conduct Rules of the National Association of Securities Dealers, Inc. applicable to transactions in options, and further agrees not to violate the position and exercise limits set forth therein. 
 8. Other Provisions: 
 (a) Alternative Calculations
and Payment on Early Termination and on Certain Extraordinary Events. If Issuer shall owe Buyer any amount pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of a Tender Offer, a Merger Event,
Insolvency or Nationalization in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in which
Issuer is the Defaulting Party or a Termination Event in which Issuer is the Affected Party, that resulted from an event or events within Issuer’s control) (a “Payment Obligation”), Issuer shall have the right, in its sole
discretion, to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Buyer, confirmed in writing within one Scheduled Trading Day, by 4:00 P.M. New York City time on
the Merger Date, Tender Offer Date, 

  

 9 

 
Announcement Date or Early Termination Date, as applicable (“Notice of Share Termination”). Upon such Notice of Share Termination, the
following provisions shall apply on the Scheduled Trading Day immediately following the Merger Date, the Tender Offer Date, Announcement Date or Early Termination Date, as applicable: 
  

			
	 Share Termination Alternative:
	  	Applicable and means that Issuer shall deliver to Dealer the Share Termination Delivery Property on the date on which the Payment Obligation would otherwise be due pursuant to Section 12.7 or
12.9 of the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable (the “Share Termination Payment Date”), in satisfaction of the Payment Obligation.
		
	 Share Termination Delivery
	  	
	 Property:
	  	A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price. The Calculation Agent shall
adjust the Share Termination Delivery Property by replacing any fractional portion of the aggregate amount of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share
Termination Unit Price.
		
	 Share Termination Unit Price:
	  	The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property, as
determined by the Calculation Agent in its discretion by commercially reasonable means and notified by the Calculation Agent to Issuer at the time of notification of the Payment Obligation.
		
	 Share Termination Delivery Unit:
	  	In the case of a Termination Event, Event of Default or Delisting, one Share or, in the case of an Insolvency, Nationalization, Merger Event or Tender Offer, a Share or a unit consisting of
the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization, Merger
Event or Tender Offer. If such Insolvency, Nationalization, Merger Event or Tender Offer involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of
cash.
		
	 Failure to Deliver:
	  	Applicable
		
	 Other applicable provisions:
	  	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 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 as a result of the fact that Seller is the Issuer of the Shares) 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”. If, in the
reasonable opinion of counsel to Issuer or Dealer, for any reason, any securities comprising the Share Termination Delivery Units deliverable pursuant to this Section 8(a) would not be immediately freely transferable by Dealer under Rule 144(k)
under the Securities Act, then Dealer may elect to either (x) accept delivery of such securities notwithstanding any restriction on transfer or (y) have the provisions set forth in Section 8(b) below apply.

  

 10 

 (b) Registration/Private Placement Procedures. (i) With respect to the Transaction, the
following provisions shall apply to the extent provided for above opposite the caption “Net Share Settlement” in Section 2 or in paragraph (a) of this Section 8. If so applicable, then, at the election of Issuer by notice to
Buyer within one Exchange Business Day after the relevant delivery obligation arises, but in any event at least one Exchange Business Day prior to the date on which such delivery obligation is due, either (A) all Shares or Share Termination
Delivery Units, as the case may be, delivered by Issuer to Buyer shall be, at the time of such delivery, covered by an effective registration statement of Issuer for immediate resale by Buyer (such registration statement and the corresponding
prospectus (the “Prospectus”) (including, without limitation, any sections describing the plan of distribution) in form and content commercially reasonably satisfactory to Buyer) or (B) Issuer shall deliver additional Shares or
Share Termination Delivery Units, as the case may be, so that the value of such Shares or Share Termination Delivery Units, as determined by the Calculation Agent to reflect an appropriate liquidity discount, equals the value of the number of Shares
or Share Termination Delivery Units that would otherwise be deliverable if such Shares or Share Termination Delivery Units were freely tradeable (without prospectus delivery) upon receipt by Buyer (such value, the “Freely Tradeable
Value”); provided that, if requested by Dealer, Issuer shall make the election described in this clause (B) with respect to Shares delivered on all Settlement Dates no later than one Exchange Business Day prior to the first
Expiration Date, and the applicable procedures described below shall apply to all Shares delivered on the Settlement Dates on an aggregate basis. (For the avoidance of doubt, as used in this paragraph (b) only, the term “Issuer” shall
mean the issuer of the relevant securities, as the context shall require.) 
 (ii) If Issuer makes the election described in
clause (b)(i)(A) above: 
 (A) Buyer (or an affiliate of Buyer designated by Buyer) shall be afforded a reasonable opportunity
to conduct a due diligence investigation with respect to Issuer that is customary in scope for underwritten offerings of equity securities and that yields results that are commercially reasonably satisfactory to Buyer or such affiliate, as the case
may be, in its discretion; and 
 (B) Buyer (or an affiliate of Buyer designated by Buyer) and Issuer shall enter into an
agreement (a “Registration Agreement”) on commercially reasonable terms in connection with the public resale of such Shares or Share Termination Delivery Units, as the case may be, by Buyer or such affiliate substantially similar to
underwriting agreements customary for underwritten offerings of equity securities, in form and substance commercially reasonably satisfactory to Buyer or such affiliate and Issuer, which Registration Agreement shall include, without limitation,
provisions substantially similar to those contained in such underwriting agreements relating to the indemnification of, and contribution in connection with the liability of, Buyer and its affiliates and Issuer, shall provide for the payment by
Issuer of all expenses in connection with such resale, including all registration costs and all fees and expenses of counsel for Buyer, and shall provide for the delivery of accountants’ “comfort letters” to Buyer or such affiliate
with respect to the financial statements and certain financial information contained in or incorporated by reference into the Prospectus. 
 (iii) If Issuer makes the election described in clause (b)(i)(B) above: 
 (A) Buyer (or an
affiliate of Buyer designated by Buyer) and any potential institutional purchaser of any such Shares or Share Termination Delivery Units, as the case may be, from Buyer or such affiliate identified by Buyer shall be afforded a commercially
reasonable opportunity to conduct a due diligence investigation in compliance with applicable law with respect to Issuer customary in scope for private placements of equity securities (including, without limitation, the right to have made available
to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them), subject to execution by such recipients of customary confidentiality agreements reasonably acceptable to
Issuer; 
 (B) Buyer (or an affiliate of Buyer designated by Buyer) and Issuer shall enter into an agreement (a
“Private Placement Agreement”) on commercially reasonable terms in connection with the private placement of such Shares or Share Termination Delivery Units, as the case may be, by Issuer to Buyer or such affiliate and the private
resale of such shares by Buyer or 
  

 11 

 
such affiliate, substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance
commercially reasonably satisfactory to Buyer and Issuer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating to the
indemnification of, and contribution in connection with the liability of, Buyer and its affiliates and Issuer, shall provide for the payment by Issuer of all expenses in connection with such resale, including all fees and expenses of counsel for
Buyer, shall contain representations, warranties and agreements of Issuer reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales, and
shall use best efforts to provide for the delivery of accountants’ “comfort letters” to Buyer or such affiliate with respect to the financial statements and certain financial information contained in or incorporated by reference into
the offering memorandum prepared for the resale of such Shares; and 
 (C) Issuer agrees that any Shares or Share Termination
Delivery Units so delivered to Dealer, (i) may be transferred by and among Dealer and its affiliates, and Issuer shall effect such transfer without any further action by Dealer and (ii) after the minimum “holding period” within
the meaning of Rule 144(d) under the Securities Act has elapsed with respect to such Shares or any securities issued by Issuer comprising such Share Termination Delivery Units, Issuer shall promptly remove, or cause the transfer agent for such
Shares or securities to remove, any legends referring to any such restrictions or requirements from such Shares or securities upon delivery by Dealer (or such affiliate of Dealer) to Issuer or such transfer agent of seller’s and broker’s
representation letters customarily delivered by Dealer in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, without any further requirement for the delivery of any certificate, consent, agreement,
opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Dealer (or such affiliate of Dealer). 
 (D) Issuer shall not take, or cause to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2)
of the Securities Act for the sale by Issuer to Dealer (or any affiliate designated by Dealer) of the Shares or Share Termination Delivery Units, as the case may be, or the exemption pursuant to Section 4(1) or Section 4(3) of the
Securities Act for resales of the Shares or Share Termination Delivery Units, as the case may be, by Dealer (or any such affiliate of Dealer). 
 (c) Make-whole Shares. If (x) Issuer elects to deliver Share Termination Delivery Units pursuant to paragraph (a) of this Section 8 or (y) Issuer makes the election described in clause (b)(i)(B) of paragraph
(b) of this Section 8, then in either case Dealer or its affiliate may sell (which sale shall be made in a commercially reasonable manner) such Shares or Share Termination Delivery Units, as the case may be, during a period (the
“Resale Period”) commencing on the Exchange Business Day following delivery of such Shares or Share Termination Delivery Units, as the case may be, and ending on the Exchange Business Day on which Dealer completes the sale of all
such Shares or Share Termination Delivery Units, as the case may be, or a sufficient number of Shares or Share Termination Delivery Units, as the case may be, so that the realized net proceeds of such sales exceed the amount of the Payment
Obligation (in the case of clause (x), or in the case that both clause (x) and clause (y) apply) or the Freely Tradeable Value (in the case that only clause (y) applies)(such amount of the Payment Obligation or Freely Tradeable Value,
as the case may be, the “Required Proceeds”). If any of such delivered Shares or Share Termination Delivery Units remain after such realized net proceeds exceed the Required Proceeds, Dealer shall return such remaining Shares or
Share Termination Delivery Units to Issuer. If the Required Proceeds exceed the realized net proceeds from such resale, Issuer shall transfer to Dealer by the open of the regular trading session on the Exchange on the Exchange Trading Day
immediately following the last day of the Resale Period the amount of such excess (the “Additional Amount”) in cash or in a number of additional Shares (“Make-whole Shares”) in an amount that, based on the Relevant
Price on the last day of the Resale Period (as if such day was the “Valuation Date” for purposes of computing such Relevant Price), has a dollar value equal to the Additional Amount. The Resale Period shall continue to enable the sale of
the Make-whole Shares in the manner contemplated by this Section 8(c). This provision shall be applied successively until the Additional Amount is equal to zero, subject to Section 8(e). 
  

 12 

 For purposes of the second sentence set forth opposite “Net Share Settlement” above, the last
sentence of Section 8(a), Section 8(b) and Section 8(c), the term “Shares” shall be deemed to include any Convertible Preferred Shares delivered pursuant to Section 8(e). 
 (d) Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this Confirmation, in no event shall Buyer be entitled to
receive, or shall be deemed to receive, any Shares if, immediately upon giving effect to such receipt of such Shares, (i) the “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated
thereunder) of Shares by Buyer or any affiliate of Buyer subject to aggregation with Buyer under such Section 13 and rules (collectively, “Buyer Group”) would be equal to or greater than 8.5% or more of the outstanding Shares
or (ii) the “Beneficial Ownership” (as defined in the Rights Agreement by and between Issuer and Stocktrans, Inc., as Rights Agent, dated September 10, 1998 (the “Rights Agreement”)) of Buyer, together with all
of its Affiliates and Associates (each as defined in the Rights Agreement) (collectively, the “Rights Agreement Buyer Group”), would be equal to or greater than 18% of the outstanding Shares. If any delivery owed to Buyer hereunder
is not made, in whole or in part, as a result of this provision, Issuer’s obligation to make such delivery shall not be extinguished and Issuer shall make such delivery as promptly as practicable after, but in no event later than one Exchange
Business Day after, Buyer gives notice to Issuer that such delivery would not result in (i) Buyer Group directly or indirectly so beneficially owning in excess of 8.5% of the outstanding Shares or (ii) the Rights Agreement Buyer Group
directly or indirectly so Beneficially Owning in excess of 18% of the outstanding Shares. 
 (e) Limitations on Settlement by Issuer.
Notwithstanding anything herein or in the Agreement to the contrary, in no event shall Issuer be required to deliver Shares in connection with the Transaction in excess of 4,800,000 Shares (as such number may be adjusted from time to time in
accordance with the provisions hereof) (the “Capped Number”). Issuer represents and warrants to Dealer (which representation and warranty shall be deemed to be repeated on each day that the Transaction is outstanding) that the
Capped Number is equal to or less than the number of authorized but unissued Shares of the Issuer that are not reserved for future issuance in connection with transactions in the Shares (other than the Transaction) on the date of the determination
of the Capped Number (such Shares, the “Available Shares”), and Issuer further agrees that it shall keep available and not reserved for future issuance for purposes other than settlement of the Transaction at least 16,584 authorized
but unissued shares of preferred stock. Following the Trade Date, Issuer agrees to use best efforts to obtain approval from its shareholders (including without limitation, to seek such approval at its next annual meeting of Shareholders and, if
needed, the annual meeting for each following calendar year) to increase the number of authorized but unissued Shares such that the number of Available Shares shall be equal to at least two times the aggregate Number of Shares for all Components.
Upon Issuer obtaining such approval for such an increase, the Capped Number shall automatically increase to two times the aggregate Number of Shares for all Components. If Issuer does not succeed in obtaining such approval for such an increase at or
prior to its fourth annual meeting of shareholders following the Trade Date, then an Additional Termination Event shall occur and be continuing with respect to which the Transaction (or a portion of the Transaction, at the discretion of the
Calculation Agent) shall be the sole Affected Transaction and Issuer shall be the sole Affected Party until Issuer succeeds in getting such approval. In the event Issuer shall not have delivered the full number of Shares otherwise deliverable as a
result of this Section 8(e) (the resulting deficit, the “Deficit Shares”) and the Capped Number has not been increased pursuant to the foregoing provisions, Issuer shall, in lieu of delivering the Deficit Shares otherwise
deliverable, on the date the delivery of Deficit Shares would have been due, deliver a number of Convertible Preferred Shares (as defined below) equal to the number of Deficit Shares divided by 909 (rounded up to the nearest whole number, or
rounded down with value of the fractional Share payable in cash, at Issuer’s election). “Convertible Preferred Shares” means a newly created series of preferred shares of Issuer the terms of which shall be reasonably acceptable
to Dealer including that (1) each shall be convertible, subject to the Share Issuance Conditions (as defined below) into 1,000 Shares, (2) such conversion right shall be limited to allow conversion into Shares only to the extent that
(A) Shares are repurchased, acquired or otherwise received by Issuer or any of its subsidiaries after such delivery date (whether or not in exchange for cash, fair value or any other consideration), (B) authorized and unissued Shares
reserved for issuance in respect of other transactions prior to such delivery date which prior to the relevant date become no longer so reserved and (C) Issuer additionally authorizes any unissued Shares that are not reserved for other
transactions (such conditions as set forth in clauses (A), (B) and (C) above, collectively, the “Share Issuance Conditions”) and (3) shall 

  

 13 

 
require Issuer to immediately notify the holder thereof of the occurrence of any of the Share Issuance Conditions (including the number of Shares subject to
clause (A), (B) or (C) and the corresponding number of Shares to be delivered) and promptly deliver such Shares upon conversion thereafter. Issuer shall not in any event be required to deliver in excess of 16,584 Convertible Preferred
Shares hereunder. If there are any Deficit Shares after the Capped Number has been increased to two times the aggregate Number of Shares for all Components, Issuer shall be continually obligated to deliver, from time to time until the full number of
Deficit Shares have been delivered pursuant to this paragraph, Shares when, and to the extent, that the Share Issuance Conditions allow such deliveries. Issuer shall immediately notify Dealer of the occurrence of any of the Share Issuance Conditions
(including the number of Shares subject thereto and the corresponding number of Shares to be delivered or into which Convertible Preferred Shares have become convertible) and promptly deliver such Shares thereafter (or, if Convertible Preferred
Shares have been delivered, upon conversion thereof). The Convertible Preferred Shares shall provide for payment of dividends equal to the aggregate dividends paid on the full number of Shares into which the Convertible Preferred Shares would be
convertible if Issuer had unlimited authorized and unissued Shares. Except as required by law and as to matters that would adversely affect the rights of the Convertible Preferred Shares relative to the Shares, the holders
of Convertible Preferred Shares shall have no voting rights. For the avoidance of doubt, the parties acknowledge that the Issuer will not be required to pay cash to settle the Transaction by reason of the fact that it owes Deficit
Shares, and any Convertible Preferred Shares will not be redeemable for, or convertible into, or settled with, cash (except in the case of a merger or similar event to the extent that holders of Shares receive cash as consideration or proceeds in
such event). 
 (f) Equity Rights. Buyer acknowledges and agrees that this Confirmation is not intended to convey to it rights with
respect to the Transaction that are senior to the claims of common stockholders in the event of Issuer’s bankruptcy. For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during
Issuer’s bankruptcy to any claim arising as a result of a breach by Issuer of any of its obligations under this Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that this Confirmation is not secured by any
collateral that would otherwise secure the obligations of Issuer herein under or pursuant to any other agreement. 
 (g) Agreement in
Respect of Termination Amounts. In determining any amounts payable in respect of the termination or cancellation of the Transaction pursuant to Section 6 of the Agreement or Article 12 of the Equity Definitions, the Calculation Agent shall
make such determination without regard to (i) changes to costs of funding, stock loan rates or expected dividends, or (ii) losses or costs incurred in connection with terminating, liquidating or re-establishing any hedge related to the
Transaction (or any gain resulting from any of them). 
 (h) Transfer and Assignment. Buyer may transfer or assign its rights and
obligations hereunder and under the Agreement, in whole or in part, at any time without the consent of Issuer to any bank or broker-dealer or any affiliate thereof that in either case regularly enters into over-the-counter equity derivative
transactions. 
 (i) Disclosure. Effective from the date of commencement of discussions concerning the Transaction, Issuer and each of
its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that
are provided to Issuer relating to such tax treatment and tax structure. 
 (j) Designation by Dealer. Notwithstanding any other
provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Issuer, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such
Shares or other securities and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations. Dealer shall be discharged of its obligations to Issuer to the extent of any such
performance. 
 (k) Additional Termination Events. The occurrence of any of the following shall constitute an Additional Termination
Event with respect to which the Transaction shall be the sole Affected Transaction and Issuer shall be the sole Affected Party; provided that with respect to any Additional Termination Event, Dealer may choose to treat part of the Transaction
as the sole Affected Transaction, 

  

 14 

 
and, upon the termination of the Affected Transaction, a Transaction with terms identical to those set forth herein except with a Number of Warrants equal to
the unaffected number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full force and effect: 
 (i) within the period commencing on the Trade Date and ending on the second anniversary of the Premium Payment Date, Buyer reasonably determines that it is advisable to terminate a portion of the Transaction so that Buyer’s related
hedging activities will comply with applicable securities laws, rules or regulations; 
 (ii) any Person (as defined below)
acquires beneficial ownership (determined in accordance with Rule 13d-3 under the Exchange Act), directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of Shares entitling the Person to
exercise 50% or more of the total voting power of all shares of Issuer’s capital stock entitled to vote generally in elections of directors, other than an acquisition by Issuer, any of Issuer’s subsidiaries or any of Issuer’s employee
benefit plans; 
 (iii) Issuer (x) merges or consolidates with or into any other Person, other than a subsidiary of
Issuer, another Person merges with or into Issuer, or Issuer conveys, sells, transfers or leases all or substantially all of its assets to another Person or (y) engages in any recapitalization, reclassification or other transaction in which all
or substantially all Shares are exchanged for or converted into cash, securities or other property, in each case, other than any merger or consolidation: 
  

	 	(A)	that does not result in a reclassification, conversion, exchange or cancellation of the outstanding Shares; 

  

	 	(B)	pursuant to which the consideration received by holders of Shares immediately prior to the transaction entitles such holders to exercise, directly or indirectly, 50% or more of the
voting power of all shares of capital stock entitled to vote generally in the election of directors of either (x) the continuing or surviving corporation or (y) a corporation that directly or indirectly owns 100% of the capital stock of
such continuing or surviving corporation, in either case, immediately after such transaction; 

  

	 	(C)	which is effected solely to change Issuer’s jurisdiction of incorporation and results in a reclassification, conversion or exchange of the outstanding Shares solely into shares
of common stock of the surviving entity; or 

 (iv) at any time Issuer’s Continuing Directors (as defined
below) do not constitute a majority of Issuer’s board of directors (or, if applicable, a successor Person to Issuer). 
 Notwithstanding
the foregoing, a transaction set forth in clause (ii), (iii) or (iv) above will not constitute an Additional Termination Event if at least 90% of the consideration paid for the Shares (excluding cash payments for fractional shares and cash
payments made pursuant to dissenters’ appraisal rights and cash dividends) in such merger or consolidation or such other transaction otherwise constituting an Additional Termination Event under clause (iii) above consists of shares of
capital stock or American Depositary Receipts in respect of shares of capital stock traded on any of the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or any of their respective
successors) (or will be so traded or quoted immediately following the completion of the merger or consolidation or such other transaction) (“Listed Shares”). 
 “Person” includes any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange
Act. 
 “Continuing Directors” means (i) individuals who on the date hereof constituted Issuer’s board of
directors and (ii) any new directors whose election to Issuer’s board of directors or whose nomination for election by Issuer’s stockholders was approved by at least a majority of Issuer’s directors then still in office 

  

 15 

 
(or a duly constituted committee thereof), either who were directors on the date hereof or whose election or nomination for election was previously so
approved. 
 (l) Effectiveness. If, prior to the Effective Date, Buyer reasonably determines that it is advisable to cancel the
Transaction because of concerns that Buyer’s related hedging activities could be viewed as not complying with applicable securities laws, rules or regulations, the Transaction shall be cancelled and shall not become effective, and neither party
shall have any obligation to the other party in respect of the Transaction. 
 (m) Extension of Settlement. Dealer may divide any
Component into additional Components and designate the Expiration Date and the Number of Warrants for each such Component if Dealer determines, in its reasonable discretion, that such further division is necessary or advisable to preserve
Dealer’s hedging activity hereunder in light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in connection with its hedging activity hereunder in a manner that would, if Dealer were Issuer or an affiliated
purchaser of Issuer, be in compliance with applicable legal and regulatory requirements. 
 (n) Waiver of Trial by Jury. EACH OF
ISSUER AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS AFFILIATES OR ISSUER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF. 
 (o) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW
DOCTRINE). 
 (p) No Set-off. The provisions of Section 2(c) of the Agreement shall not apply to the Transaction. Each party
waives any and all rights it may have to set-off delivery or payment obligations it owes to the other party under the Transaction against any delivery or payment obligations owed to it by the other party, whether arising under the Agreement, under
any other agreement between parties hereto, by operation of law or otherwise. 
 (q) Amendment. If the Underwriters party to the
Underwriting Agreement exercise their right to purchase additional convertible notes as set forth therein, then, at the discretion of Issuer, Issuer may elect that Dealer and Issuer will either enter into a new confirmation evidencing additional
warrants to be issued by Issuer to Dealer or amend this Confirmation to evidence such additional warrants (in each case on pricing terms acceptable to Dealer and Issuer) (such additional confirmation or amendment to this Confirmation to provide for
the payment by Dealer to Issuer of the additional premium related thereto in an amount to be agreed between the parties). 
 (r)
Counterparts. This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
 (s) Lock Up. Prior to the first anniversary of the Trade Date, if the Underwriters party to the Underwriting Agreement exercise their right to
purchase additional convertible notes set forth therein and Issuer does not elect to issue the maximum number of Additional Warrants as provided in paragraph (o) above, Issuer shall not issue or enter into any warrant, a call option, a variable
forward or other derivative linked to the Shares (collectively, “Warrants”), whether cash settled and/or physically settled and/or net share settled, without a prior written consent of Dealer which shall not be unreasonably
withheld, unless such Warrants are issued (i) pursuant to any present or future employee, director or consultant benefit plan or program of Issuer or any hedging arrangements in respect thereof, (ii) to all Issuer’s stockholders as a
free distribution or a distribution for less than the fair market value of such Warrants (as determined by the Calculation Agent), (iii) as part of mandatorily convertible units in a bona fide capital raising transaction 

  

 16 

 
unrelated to the convertible notes sold pursuant to the Purchase Agreement, or (iv) as part of a bona fide Share repurchase transaction unrelated to the
convertible notes sold pursuant to the Purchase Agreement. “Additional Warrants” shall equal to the product of (i) the Warrant Entitlement, (ii) the initial conversion rate of the convertible notes and (iii) the
aggregate principal amount of the additional convertible notes purchased by the Underwriters divided by USD1,000. 
 (t) Role of
Agent. Credit Suisse, New York branch, in its capacity as Agent will be responsible for (A) effecting this Transaction, (B) issuing all required confirmations and statements to Dealer and Issuer, (C) maintaining books and records
relating to this Transaction in accordance with its standard practices and procedures and in accordance with applicable law and (D) unless otherwise requested by Issuer, receiving, delivering, and safeguarding Issuer’s funds and any
securities in connection with this Transaction, in accordance with its standard practices and procedures and in accordance with applicable law. 
  

	 	(i)	Agent is acting in connection with this Transaction solely in its capacity as Agent for Dealer and Issuer pursuant to instructions from Dealer and Issuer. Agent shall have no
responsibility or personal liability to Dealer or Issuer arising from any failure by Dealer or Issuer to pay or perform any obligations hereunder, or to monitor or enforce compliance by Dealer or Issuer with any obligation hereunder, including,
without limitation, any obligations to maintain collateral. Each of Dealer and Issuer agrees to proceed solely against the other to collect or recover any securities or monies owing to it in connection with or as a result of this Transaction. Agent
shall otherwise have no liability in respect of this Transaction, except for its gross negligence or willful misconduct in performing its duties as Agent. 

  

	 	(ii)	Any and all notices, demands, or communications of any kind relating to this Transaction between Dealer and Issuer shall be transmitted exclusively through Agent at the following
address: 

 Credit Suisse, New York branch 
 Eleven Madison Avenue 
 New York, NY 10010-3629 
 For payments and deliveries: 
 Facsimile No.:
(212) 325 8175 
 Telephone No.: (212) 325 8678 / (212) 325 3213 
 For all other communications: 
 Facsimile No.:
(212) 325 8173 
 Telephone No.: (212) 325 8676 / (212) 538 5306 / (212) 538 1193 / (212) 538 6886 
  

	 	(iii)	The date and time of the Transaction evidenced hereby will be furnished by the Agent to Dealer and Issuer upon written request. 

  

	 	(iv)	The Agent will furnish to Issuer upon written request a statement as to the source and amount of any remuneration received or to be received by the Agent in connection with the
Transaction evidenced hereby. 

  

	 	(v)	Dealer and Issuer each represents and agrees (A) that this Transaction is not unsuitable for it in the light of such party’s financial situation, investment objectives and
needs and (B) that it is entering into this Transaction in reliance upon such tax, accounting, regulatory, legal and financial advice as it deems necessary and not upon any view expressed by the other or the Agent. 

  

	 	(vi)	Dealer is regulated by The Securities and Futures Authority and has entered into this Transaction as principal. The time at which this Transaction was executed will be notified to
Issuer (through the Agent) on request. 

  

 17 

 Issuer hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so that
errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Issuer with respect to the
Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Credit Suisse, New York branch, Eleven
Madison Avenue, New York, NY 10010-3629, Facsimile No. (212) 325-8173. 
  

					
	Yours faithfully,
	
	CREDIT SUISSE INTERNATIONAL
		
	By:	 	 /s/ Sayedur Khan

		 	Name:	 	Sayedur Khan
		 	Title:	 	
		
	By:	 	 /s/ Laura Muir

		 	Name:	 	Laura Muir
		 	Title:	 	
	
	CREDIT SUISSE, NEW YORK BRANCH,
    AS AGENT FOR CREDIT SUISSE
    INTERNATIONAL
		
	By:	 	 /s/ Yolanda Perez-Wilson

		 	Name:	 	Yolanda Perez-Wilson
		 	Title:	 	Assistant Vice President
		
	By:	 	 /s/ Melissa Garcia

		 	Name:	 	Melissa Garcia
		 	Title:	 	Assistant Vice President

  

					
	Agreed and Accepted By:
	
	VIROPHARMA INCORPORATED
		
	By:	 	 /s/ Michel de Rosen

		 	Name:	 	Michel de Rosen
		 	Title:	 	President and CEO

  

 18 

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

					
	 Component Number
	 	 Number of Warrants
	 	 Expiration Date

	 1
	 	149,062	 	June 13, 2017
	 2
	 	149,062	 	June 14, 2017
	 3
	 	149,062	 	June 15, 2017
	 4
	 	149,062	 	June 16, 2017
	 5
	 	149,062	 	June 19, 2017
	 6
	 	149,062	 	June 20, 2017
	 7
	 	149,062	 	June 21, 2017
	 8
	 	149,062	 	June 22, 2017
	 9
	 	149,062	 	June 23, 2017
	 10
	 	149,062	 	June 26, 2017
	 11
	 	149,062	 	June 27, 2017
	 12
	 	149,062	 	June 28, 2017
	 13
	 	149,062	 	June 29, 2017
	 14
	 	149,062	 	June 30, 2017
	 15
	 	149,062	 	July 3, 2017
	 16
	 	149,062	 	July 5, 2017
	 17
	 	149,062	 	July 6, 2017
	 18
	 	149,062	 	July 7, 2017
	 19
	 	149,062	 	July 10, 2017
	 20
	 	149,062	 	July 11, 2017
	 21
	 	149,062	 	July 12, 2017
	 22
	 	149,062	 	July 13, 2017
	 23
	 	149,062	 	July 14, 2017
	 24
	 	149,062	 	July 17, 2017
	 25
	 	149,062	 	July 18, 2017
	 26
	 	149,062	 	July 19, 2017
	 27
	 	149,062	 	July 20, 2017
	 28
	 	149,062	 	July 21, 2017
	 29
	 	149,062	 	July 24, 2017
	 30
	 	149,062	 	July 25, 2017
	 31
	 	149,062	 	July 26, 2017
	 32
	 	149,062	 	July 27, 2017
	 33
	 	149,062	 	July 28, 2017
	 34
	 	149,062	 	July 31, 2017
	 35
	 	149,062	 	August 1, 2017
	 36
	 	149,062	 	August 2, 2017
	 37
	 	149,062	 	August 3, 2017
	 38
	 	149,062	 	August 4, 2017
	 39
	 	149,062	 	August 7, 2017
	 40
	 	149,062	 	August 8, 2017
	 41
	 	149,062	 	August 9, 2017
	 42
	 	149,062	 	August 10, 2017
	 43
	 	149,062	 	August 11, 2017
	 44
	 	149,062	 	August 14, 2017
	 45
	 	149,062	 	August 15, 2017
	 46
	 	149,062	 	August 16, 2017
	 47
	 	149,062	 	August 17, 2017
	 48
	 	149,062	 	August 18, 2017
	 49
	 	149,062	 	August 21, 2017
	 50
	 	149,062	 	August 22, 2017
	 51
	 	149,062	 	August 23, 2017

  

 19 

					
	 52
	 	149,062	 	August 24, 2017
	 53
	 	149,062	 	August 25, 2017
	 54
	 	149,062	 	August 28, 2017
	 55
	 	149,062	 	August 29, 2017
	 56
	 	149,062	 	August 30, 2017
	 57
	 	149,062	 	August 31, 2017
	 58
	 	149,062	 	September 1, 2017
	 59
	 	149,062	 	September 5, 2017
	 60
	 	149,058	 	September 6, 2017

  

 20Confirmation of Issue Warrant Transaction

 Exhibit 10.4 
 EXECUTION COPY 
 Opening Transaction 
  

			
	To:	  	ViroPharma Incorporated
		
	A/C:	  	[Insert Account Number]
		
	From:	  	Wells Fargo Bank, National Association
		
	Re:	  	Issuer Warrant Transaction
		
	Ref. No:	  	[Insert Reference Number]
		
	Date:	  	March 20, 2007

  

 Dear Sir(s): 
 The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of
the above-referenced transaction entered into on the Trade Date specified below (the “Transaction”) between Wells Fargo Bank, National Association (“Dealer”) and ViroPharma Incorporated
(“Issuer”). This communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. 
 1. This Confirmation is subject to, and incorporates, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and
provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2000 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern. For purposes of the Equity Definitions, each reference herein to a Warrant
shall be deemed to be a reference to a Call Option or an Option, as context requires. 
 Each party is hereby advised, and each such party
acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial transactions and has taken other material actions in reliance upon the parties’ entry into the Transaction to which this Confirmation
relates on the terms and conditions set forth below. 
 This Confirmation evidences a complete and binding agreement between Dealer and
Issuer as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement as if Dealer and Issuer had executed an
agreement in such form on the date hereof (but without any Schedule except for (i) the election of Loss and Second Method and US Dollars (“USD”) as the Termination Currency, (ii) the replacement of the word
“third” in the last line of Section 5(a)(i) with the word “first” and (iii) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to Issuer with a “Threshold Amount”
of USD10 million). 
 All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as
expressly modified herein. In the event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern. 

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

 

			
	Trade Date:	 	March 20, 2007
		
	Effective Date:	 	March 26, 2007, or such other date as agreed between the parties, subject to Section 8(k) below
		
	Components:	 	The Transaction will be divided into individual Components, each with the terms set forth in this Confirmation, and, in particular, with the Number of Warrants and Expiration Date set forth
in this Confirmation. The payments and deliveries to be made upon settlement of the Transaction will be determined separately for each Component as if each Component were a separate Transaction under the Agreement.
		
	Warrant Style:	 	European
		
	Warrant Type:	 	Call
		
	Seller:	 	Issuer
		
	Buyer:	 	Dealer
		
	Shares:	 	The Common Stock of Issuer, par value USD0.002 per share (Ticker Symbol: “VPHM”).
		
	Number of Warrants:	 	For each Component, as provided in Annex A to this Confirmation.
		
	Warrant Entitlement:	 	One Share per Warrant
		
	Strike Price:	 	USD24.92
		
	Premium:	 	USD15,316,875.00 (Premium per Warrant USD5.1377)
		
	Premium Payment Date:	 	The Effective Date
		
	Exchange:	 	The NASDAQ Global Select Market
		
	Related Exchange:	 	All Exchanges

 Procedures for Exercise: 
  

			
	    In respect of any Component:

  

			
	Expiration Time:	 	Valuation Time
		
	Expiration Date:	 	As provided in Annex A to this Confirmation (or, if such date is not a Scheduled Trading Day, the next following Scheduled Trading Day that is not already an Expiration Date for
another Component); provided that if that date is a Disrupted Day, the Expiration Date for such Component shall be the first succeeding Scheduled Trading Day that is not a Disrupted Day and is not or is not deemed to be an Expiration Date in
respect of any other Component of the Transaction hereunder; and provided further that

  

 2 

			
		 	if the Expiration Date has not occurred pursuant to the preceding proviso as of the Final Disruption Date, the Final Disruption Date shall be the Expiration Date (irrespective of whether such
date is an Expiration Date in respect of any other Component for the Transaction). “Final Disruption Date” means September 19, 2017. Notwithstanding the foregoing and anything to the contrary in the Equity Definitions, if a
Market Disruption Event occurs on any Expiration Date, the Calculation Agent may determine that such Expiration Date is a Disrupted Day only in part, in which case the Calculation Agent shall make adjustments to the number of Warrants for the
relevant Component for which such day shall be the Expiration Date and shall designate the Scheduled Trading Day determined in the manner described in the immediately preceding sentence as the Expiration Date for the remaining Warrants for such
Component. Section 6.6 of the Equity Definitions shall not apply to any Valuation Date occurring on an Expiration Date.
		
	Market Disruption Event:	 	Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “during the one hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in
Valuation Time or Knock-out Valuation Time, as the case may be,” in clause (ii) thereof.
		
	Automatic Exercise:	 	Applicable; and means that the Number of Warrants for the corresponding Expiration Date will be deemed to be automatically exercised at the Expiration Time on such Expiration Date unless
Buyer notifies Seller and the Calculation Agent (by telephone or in writing) prior to the Expiration Time on such Expiration Date that it does not wish Automatic Exercise to occur, in which case Automatic Exercise will not apply to such Expiration
Date.
		
	Issuer’s Telephone Number and Telex and/or Facsimile Number and Contact Details for purpose of Giving Notice:	 	Attn: Chief Financial Officer
		 	Telephone: (610) 458 7300
		 	Facsimile: (610) 458 7380
		
		 	With a copy to:
		
		 	Attn: General Counsel
		 	Facsimile: (610) 458 7380

 Settlement Terms: 
  

	
	     In respect of any Component:

  

			
	Settlement Currency:	 	USD
		
	Net Share Settlement:	 	On each Settlement Date, Issuer shall deliver to Dealer a number of Shares equal to the Number of

  

 3 

			
		 	Shares to be Delivered for such Settlement Date to the account specified by Dealer and cash in lieu of any fractional Shares valued at the Relevant Price on the Valuation Date corresponding
to such Settlement Date. If, in the reasonable opinion of Issuer, Dealer or the Calculation Agent based on advice of counsel, for any reason, the Shares deliverable upon Net Share Settlement would not be immediately freely transferable by Dealer
under Rule 144(k) under the Securities Act of 1933, as amended (the “Securities Act”), then the Calculation Agent may elect for Dealer to either (x) accept delivery of such Shares notwithstanding any restriction on transfer or (y)
have the provisions set forth in Section 8(b) below apply.
		
		 	The Number of Shares to be Delivered shall be delivered by Issuer to Dealer no later than 12:00 noon (local time in New York City) on the relevant Settlement Date.
		
	Number of Shares to be Delivered:	 	In respect of any Exercise Date, subject to the last sentence of Section 9.5 of the Equity Definitions, the product of (i) the number of Warrants exercised or deemed exercised on such
Exercise Date, (ii) the Warrant Entitlement and (iii) (A) the excess of the VWAP Price on the Valuation Date occurring on such Exercise Date over the Strike Price (or, if no such excess, zero) divided by (B) such VWAP Price.
		
	VWAP Price:	 	For any Valuation Date, the NASDAQ Volume Weighted Average Price per share of Shares for the regular trading session (including any extensions thereof) of the Exchange on such Valuation Date
(without regard to pre-open or after hours trading outside of such regular trading session), as published by Bloomberg at 4:15 p.m. New York City time (or 15 minutes following the end of any extension of the regular trading session) on such
Valuation Date, on Bloomberg page “VPHM.Q <Equity> AQR” (or any successor thereto) (or if such published volume weighted average price is unavailable or is manifestly incorrect, the market value of one Share on such Valuation Date,
as determined by the Calculation Agent using a volume weighted method).
		
	Other Applicable Provisions:	 	The provisions of Sections 9.1(c), 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 as a result of the fact that Seller is the Issuer of the Shares) and 9.12 of the Equity Definitions will be applicable, as if
“Physical Settlement” applied to the Transaction.

  

 4 

 Adjustments: 
  

			
	    In respect of any Component:

  

			
	Method of Adjustment:	 	Calculation Agent Adjustment; provided that in respect of an Extraordinary Dividend, “Calculation Agent Adjustment” shall be as described in the provision
below.
		
	Extraordinary Dividend:	 	Any cash dividend or distribution on the Shares with an ex dividend date occurring on or after the Trade Date and on or prior to the Expiration Date.
		
	Extraordinary Dividend Adjustment:	 	If at any time during the period from and including the Trade Date, to but excluding the last Expiration Date, an ex-dividend date for an Extraordinary Dividend occurs, then the Calculation
Agent will make adjustments to the Strike Price, the Number of Warrants, the Warrant Entitlement and/or any other variable relevant to the exercise, settlement, payment or other terms of the Transaction to preserve the fair value of the Transaction
to Buyer after taking into account such Extraordinary Dividend.

 Extraordinary Events: 
  

			
		
	Consequences of Merger Events:	 	

  

					
	(a)	 	Share-for-Share:	 	Modified Calculation Agent Adjustment
			
	(b)	 	Share-for-Other:	 	Cancellation and Payment (Calculation Agent Determination)
			
	(c)	 	Share-for-Combined:	 	Component Adjustment.

  

			
	Tender Offer:	 	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

  

			
	Modified Calculation Agent Adjustment:	 	If, in respect of any Merger Event or Tender Offer to which Modified Calculation Agent Adjustment applies, the adjustments to be made in accordance with Section 12.2(e)(i) or Section
12.3(d)(i), as the case may be, of the Equity Definitions would result in Issuer being different from the issuer of the Shares, then with respect to such Merger Event or Tender Offer, as a condition precedent to the adjustments contemplated in
Section 12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity Definitions, Issuer, the issuer of the Shares and Buyer shall, prior to the Merger Date or Tender Offer, as the case may be, have entered into such documentation containing
representations, warranties and agreements relating to securities law and other issues as requested by the Calculation Agent that the Calculation Agent has determined, in its reasonable discretion, to be reasonably necessary or
appropriate

  

 5 

			
		 	to allow Buyer to continue as a party to the Transaction, as adjusted under Section 12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity Definitions, and to preserve Hedging
Party’s hedging or hedge unwind activities in connection with the Transaction in a manner compliant with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Buyer and Hedging
Party, and if such conditions are not met or if the Calculation Agent determines that no adjustment that it could make under Section 12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity Definitions will produce a commercially
reasonable result, then the consequences set forth in Section 12.2(e)(ii) or Section 12.3(d)(ii), as the case may be, of the Equity Definitions shall apply.
		
	Reference Markets:	 	For the avoidance of doubt, and without limiting the generality of the foregoing provisions, any adjustment effected by the Calculation Agent pursuant to Section 12.2(e) and/or Section
12.3(d) of the Equity Definitions may be determined by reference to the adjustment(s) made in respect of Merger Events or Tender Offers, as the case may be, in the convertible bond market.
		
	Nationalization, Insolvency or	 	
	Delisting:	 	Cancellation and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a
Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global
Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.
		
	Additional Disruption Events:	 	

  

					
	(a)	 	Change in Law:	 	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions shall be amended by inserting (i) at the end of the fifth line thereof the following phrase: “(or
GS)”, (ii) at the end of clause (X) the following phrase: “(or, in the case of GS, a Hedging Party Related Transaction)”; and (iii) in clause (Y), immediately following the words “such Transaction”, the following phrase:
“(or, in the case of GS, a Hedging Party Related Transaction).”
			
		 	GS:	 	Goldman Sachs International or any of its affiliates to which Goldman Sachs International assigns its rights

  

 6 

					
		 		 	and obligations under a Hedging Party Related Transaction.
			
		 	Hedging Party Related	 	
		 	Transaction:	 	A transaction between GS and Buyer or its affiliate evidenced by a confirmation that refers to the Transaction.
			
	(b)	 	Failure to Deliver:	 	Applicable
			
	(c)	 	Insolvency Filing:	 	Applicable
			
	(d)	 	Hedging Disruption:	 	Applicable; provided that Section 12.9(a)(v) of the Equity Definitions shall be amended by inserting at the end of clause (A) the following phrase: “(or a Hedging Party Related
Transaction).”
			
	(e)	 	Increased Cost of Hedging:	 	Applicable; provided that Section 12.9(a)(vi) of the Equity Definitions shall be amended by inserting at the end of clause (A) the following phrase: “(or a Hedging Party Related
Transaction).”
			
	(f)	 	Loss of Stock Borrow:	 	Applicable; provided that Section 12.9(a)(vii) of the Equity Definitions shall be amended by inserting in the third line thereof following the words “such Transaction” the
following phrase: “(or a Hedging Party Related Transaction).”
			
		 	Maximum Stock Loan Rate:	 	1.00% per annum
			
	(g)	 	Increased Cost of Stock Borrow:	 	Applicable; provided that Section 12.9(a)(viii) of the Equity Definitions shall be amended by inserting in the second line thereof following the words “such Transaction” the
following phrase: “(or a Hedging Party Related Transaction).”
			
		 	Initial Stock Loan Rate:	 	0.25% per annum

  

							
		
	Hedging Party:	 	GS
		
	Determining Party:	 	GS
		
	Non-Reliance:	 	Applicable
		
	 Agreements and Acknowledgments
 Regarding
Hedging Activities:
	 	Applicable
		
	Additional Acknowledgments:	 	Applicable
			
	3.	 	Calculation Agent:	 	GS
			
	4.	 	Account Details:	 	
			
		 	Dealer Payment Instructions:	 	
			
		 		 	 Wells Fargo Bank, N.A.
 Bank Routing: 121 000
248
 Account Name: Capital Markets Operations WIP
 Account No:
4375-691755

  

 7 

							
		 	Issuer Payment Instructions:
			
		 		 	 Comerica Bank – California/Branch 948
 Bank Routing: 121137522
 Account Name: ViroPharma Incorporated
 Account No.: 1892043769

		
	5.	 	Offices:
		
		 	The Office of Dealer for the Transaction is:
			
		 		 	550 California Street, 14th Floor, San Francisco, CA 94104
		
		 	The Office of Issuer for the Transaction is:
			
		 		 	 397 Eagleview Boulevard
 Exton, PA
19341

		
	6.	 	Notices: For purposes of this Confirmation:
			
	(a)	 		 	Address for notices or communications to Issuer:
				
		 		 	To:	  	 ViroPharma Incorporated
 397 Eagleview
Boulevard
 Exton, PA 19341

				
		 		 	Attn:	  	Chief Financial Officer
		 		 	Telephone:	  	(610) 458 7300
		 		 	Facsimile:	  	(610) 458 7380
			
		 		 	With a copy to:
				
		 		 	Attn:	  	General Counsel
		 		 	Facsimile:	  	(610) 458 7380
			
	(b)	 		 	Address for notices or communications to Dealer:
				
		 		 	To:	  	 Wells Fargo Bank, N.A.
 550 California
Street
 14th Floor
 San Francisco, CA 94104

				
		 		 	Attn:	  	 Financial Products Documentation Group
 Equities
Trading Manager

		 		 	Telephone:	  	(415) 396-3962
		 		 	Facsimile:	  	(415) 646-9208
			
		 		 	With a copy to:
				
		 		 	Attn:	  	Michele Beasley
		 		 	Facsimile:	  	(415) 646-9208
		
	7.	 	Representations, Warranties and Agreements:

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

 8 

 (i) On the Trade Date, (A) none of Issuer and its officers and directors is aware of
any material nonpublic information regarding Issuer or the Shares and (B) all reports and other documents filed by Issuer with the Securities and Exchange Commission pursuant to the Exchange Act when considered as a whole (with the more recent
such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading. 
 (ii)
Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer acknowledges that neither Dealer nor GS is making any representations or warranties with respect to the treatment of the Transaction under FASB Statements 128,
133 (as amended), 149 or 150, EITF Issue No. 00-19, 01-6 or 03-6 (or any successor issue statements) or under any accounting standards including FASB’s Liabilities & Equity Project. 
 (iii) Prior to the Trade Date, Issuer shall deliver to Dealer and GS a resolution of Issuer’s board of directors authorizing the
Transaction (including the issuance of any Convertible Preferred Shares as contemplated in Section 8(e) below) and such other certificate or certificates as either Dealer or GS shall reasonably request. 
 (iv) Issuer is not entering into this Confirmation to create actual or apparent trading activity in the Shares (or any security
convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act. 
 (v) Issuer is not, and after giving effect to the transactions contemplated hereby will not be, required to register as an
“investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
 (vi) On the Trade
Date and the Premium Payment Date (A) the assets of Issuer at their fair valuation exceed the liabilities of Issuer, including contingent liabilities, (B) the capital of Issuer is adequate to conduct the business of Issuer and
(C) Issuer has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts mature. 
 (vii) Issuer shall not take any action to decrease the number of Available Shares below the Capped Number (each as defined below).

 (viii) The representations and warranties of Issuer set forth in Section 3 of the Agreement and Section 1 of the
Underwriting Agreement dated as of the Trade Date between Issuer and Goldman, Sachs & Co. (“GS & Co.”) as representative of the Underwriters party thereto (the “Underwriting Agreement”) are true
and correct as of the Trade Date and the Effective Date and are hereby deemed to be repeated to Dealer and GS as if set forth herein. 
 (ix) Issuer understands no obligations of Dealer to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any affiliate of Dealer or any governmental
agency. 
 (x)(A) During the period starting on the first Expiration Date and ending on the last Expiration Date (the
“Settlement Period”), the Shares or securities that are convertible into, or exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted period,” as such term is defined in Regulation M
under the Exchange Act (“Regulation M”) and (B) Issuer shall not engage in any “distribution,” as such term is defined in Regulation M, other than a distribution meeting the requirements of the exceptions set forth in
sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day immediately following the Settlement Period. 
 (xi) During the Settlement Period, neither Issuer nor any “affiliate” or “affiliated purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall directly
or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase 

 
of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited
partnership or a depository share) or any security convertible into or exchangeable or exercisable for Shares, except through GS & Co. 
 (b) Each of Dealer and Issuer agrees and represents that it is an “eligible contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended. 
 (c) Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Dealer represents and warrants to Issuer that (i) it has the financial ability to bear the economic risk of its
investment in the Transaction and is able to bear a total loss of its investment and its investments in and liabilities in respect of the Transaction, which it understands are not readily marketable, are not disproportionate to its net worth, and it
is able to bear any loss in connection with the Transaction, including the loss of its entire investment in the Transaction, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the
Securities Act, (iii) it is entering into the Transaction for its own account without a view to the distribution or resale thereof, (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be
registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws, (v) its financial condition is such that it has no need for liquidity with respect to its investment in the Transaction
and no need to dispose of any portion thereof to satisfy any existing or contemplated undertaking or indebtedness and is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and
understands and accepts, the terms, conditions and risks of the Transaction. 
 (d) Each of Dealer and Issuer agrees and acknowledges
(A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of Title 11 of the United States Code (the “Bankruptcy Code”), with respect to which each payment and
delivery hereunder is a “settlement payment,” as such term is defined in Section 741(8) 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 is a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections,
Section 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code. 
 (e) Issuer shall deliver to Dealer and Hedging
Party an opinion of counsel, dated as of the Trade Date and reasonably acceptable to each of Dealer and GS in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement and an incumbency certificate in customary
form. 
 8. Other Provisions: 
 (a) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events. If Issuer shall owe Buyer any amount pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the
event of a Tender Offer, a Merger Event, Insolvency or Nationalization in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the
event of an Event of Default in which Issuer is the Defaulting Party or a Termination Event in which Issuer is the Affected Party, that resulted from an event or events within Issuer’s control) (a “Payment Obligation”), Issuer
shall have the right, in its sole discretion, to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Buyer and the Calculation Agent, confirmed in writing within one
Scheduled Trading Day, by 4:00 P.M. New York City time on the Merger Date, Tender Offer Date, Announcement Date or Early Termination Date, as applicable (“Notice of Share Termination”). Upon such Notice of Share Termination, the
following provisions shall apply on the Scheduled Trading Day immediately following the Merger Date, the Tender Offer Date, Announcement Date or Early Termination Date, as applicable: 
  

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

  

 10 

			
		  	of the Payment Obligation.
		
	 Share Termination Delivery Property:
	  	A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price. The Calculation Agent shall
adjust the Share Termination Delivery Property by replacing any fractional portion of the aggregate amount of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share
Termination Unit Price.
		
	 Share Termination Unit Price:
	  	The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property, as
determined by the Calculation Agent in its discretion by commercially reasonable means and notified by the Calculation Agent to Issuer at the time of notification of the Payment Obligation.
		
	 Share Termination Delivery Unit:
	  	In the case of a Termination Event, Event of Default or Delisting, one Share or, in the case of an Insolvency, Nationalization, Merger Event or Tender Offer, a Share or a unit consisting of
the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization, Merger
Event or Tender Offer. If such Insolvency, Nationalization, Merger Event or Tender Offer involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of
cash.
		
	 Failure to Deliver:
	  	Applicable
		
	 Other applicable provisions:
	  	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 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 as a result of the fact that Seller is the Issuer of the Shares) 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”. If, in the
reasonable opinion of counsel to Issuer, Dealer or GS, for any reason, any securities comprising the Share Termination Delivery Units deliverable pursuant to this Section 8(a) would not be immediately freely transferable by Dealer under Rule 144(k)
under the Securities Act, then Dealer may elect to either (x) accept delivery of such securities notwithstanding any restriction on transfer or (y) have the provisions set forth in Section 8(b) below apply.

 (b) Registration/Private Placement Procedures. (i) With respect to the Transaction,
the following provisions shall apply to the extent provided for above opposite the caption “Net Share Settlement” in Section 2 or in paragraph (a) of this Section 8. If so applicable, then, at the election of Issuer by
notice to Buyer and GS within one Exchange Business Day after the relevant delivery obligation arises, but in any event at least one Exchange Business Day prior to the date on which such delivery obligation is due, either (A) all Shares or
Share Termination Delivery Units, as the case may be, delivered by Issuer to Buyer and by Buyer to Hedging Party shall be, at the time of such delivery, covered by an effective registration statement of Issuer for immediate resale by Buyer or by
Hedging Party, as the case may be (such registration statement and the corresponding prospectus (the “Prospectus”) (including, without limitation, any sections describing the plan of distribution) in form and content commercially
reasonably satisfactory to Buyer and Hedging Party) or (B) Issuer shall deliver additional Shares or Share 

  

 11 

 
Termination Delivery Units, as the case may be, so that the value of such Shares or Share Termination Delivery Units, as determined by the Calculation Agent
to reflect an appropriate liquidity discount, equals the value of the number of Shares or Share Termination Delivery Units that would otherwise be deliverable if such Shares or Share Termination Delivery Units were freely tradeable (without
prospectus delivery) upon receipt by Buyer (such value, the “Freely Tradeable Value”); provided that, if requested by Dealer or Hedging Party, Issuer shall make the election described in this clause (B) with respect to
Shares delivered on all Settlement Dates no later than one Exchange Business Day prior to the first Expiration Date, and the applicable procedures described below shall apply to all Shares delivered on the Settlement Dates on an aggregate basis.
(For the avoidance of doubt, as used in this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant securities, as the context shall require.) 
  

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

 (A) Buyer (or an affiliate of Buyer designated by Buyer) and Hedging Party (or an affiliate of Hedging Party designated by Hedging Party) shall be afforded a reasonable opportunity to conduct a due diligence
investigation with respect to Issuer that is customary in scope for underwritten offerings of equity securities and that yields results that are commercially reasonably satisfactory to Buyer, Hedging Party or such respective affiliates, as the case
may be, in its discretion; and 
 (B) Buyer (or an affiliate of Buyer designated by Buyer), Hedging Party (or an affiliate of
Hedging Party designated by Hedging Party) and Issuer shall enter into an agreement (a “Registration Agreement”) on commercially reasonable terms in connection with the public resale of such Shares or Share Termination Delivery
Units, as the case may be, by Buyer, Hedging Party or any such affiliate substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance commercially reasonably satisfactory to Buyer,
Hedging Party and/or any such affiliates and Issuer, which Registration Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating to the indemnification of, and
contribution in connection with the liability of, Buyer, Hedging Party and their respective affiliates and Issuer, shall provide for the payment by Issuer of all expenses in connection with such resale, including all registration costs and all fees
and expenses of counsel for Buyer and counsel for Hedging Party,, and shall provide for the delivery of accountants’ “comfort letters” to Buyer, Hedging Party and/or any such affiliate with respect to the financial statements and
certain financial information contained in or incorporated by reference into the Prospectus. 
  

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

 (A) Buyer (or an affiliate of Buyer designated by Buyer) and Hedging Party (or an affiliate of Hedging Party designated by Hedging Party) and any potential institutional purchaser of any such Shares or Share
Termination Delivery Units, as the case may be, from Buyer, Hedging Party and/or any such designated affiliate shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation in compliance with applicable law with
respect to Issuer customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other
information reasonably requested by them), subject to execution by such recipients of customary confidentiality agreements reasonably acceptable to Issuer; 
 (B) Buyer (or an affiliate of Buyer designated by Buyer) and Hedging Party (or an affiliate of Hedging Party designated by Hedging Party) and Issuer shall enter into an agreement (a “Private Placement
Agreement”) on commercially reasonable terms in connection with the private placement of such Shares or Share Termination Delivery Units, as the case may be, by Issuer to Buyer or such an affiliate, the private resale of such shares by
Buyer or such an affiliate to Hedging Party or its affiliate and the private resale of such shares by Hedging Party or such an affiliate, substantially similar to private placement purchase agreements customary for private placements of equity
securities, in form and substance commercially reasonably satisfactory to Buyer, Hedging Party, their respective affiliates and Issuer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those
contained in such private placement purchase agreements relating to the indemnification of, and contribution in connection 

  

 12 

 
with the liability of, Buyer, Hedging Party and their respective affiliates and Issuer, shall provide for the payment by Issuer of all expenses in connection
with such resale, including all fees and expenses of counsel for Buyer and counsel for Hedging Party, shall contain representations, warranties and agreements of Issuer reasonably necessary or advisable to establish and maintain the availability of
an exemption from the registration requirements of the Securities Act for such resales, and shall use best efforts to provide for the delivery of accountants’ “comfort letters” to Buyer, Hedging Party and/or any such affiliate with
respect to the financial statements and certain financial information contained in or incorporated by reference into the offering memorandum prepared for the resale of such Shares; and 
 (C) Issuer agrees that any Shares or Share Termination Delivery Units so delivered to Dealer, (i) may be transferred by and among
Dealer, Hedging Party and their respective affiliates, and Issuer shall effect such transfers without any further action by Dealer or Hedging Party and (ii) after the minimum “holding period” within the meaning of Rule 144(d) under
the Securities Act has elapsed with respect to such Shares or any securities issued by Issuer comprising such Share Termination Delivery Units, Issuer shall promptly remove, or cause the transfer agent for such Shares or securities to remove, any
legends referring to any such restrictions or requirements from such Shares or securities upon delivery by Dealer (or such affiliate of Dealer) or by Hedging Party (or such affiliate of Hedging Party) to Issuer or such transfer agent of
seller’s and broker’s representation letters customarily delivered by Dealer or Hedging Party, as the case may be, in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, without any further
requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Dealer (or such affiliate of Dealer) or by Hedging
Party (or such affiliate of Hedging Party), as the case may be. 
 (D) Issuer shall not take, or cause to be taken, any action
that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Issuer to Dealer (or any affiliate designated by Dealer) of the Shares or Share Termination Delivery Units, as the case may be, or
the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Shares or Share Termination Delivery Units, as the case may be, by Dealer (or any such affiliate of Dealer). 
 (c) Make-whole Shares. If Issuer (x) elects to deliver Share Termination Delivery Units pursuant to paragraph (a) of this Section 8
or (y) makes the election described in clause (b)(i)(B) of paragraph (b) of this Section 8, then Dealer shall deliver such Shares or Share Termination Units to the Hedging Party under a Hedging Party Related Transaction and Hedging
Party or its affiliate may sell (which sale shall be made in a commercially reasonable manner) such Shares or Share Termination Delivery Units, as the case may be, during a period (the “Resale Period”) commencing on the Exchange
Business Day following delivery of such Shares or Share Termination Delivery Units, as the case may be, and ending on the Exchange Business Day on which Hedging Party or its affiliate completes the sale of all such Shares or Share Termination
Delivery Units, as the case may be, or a sufficient number of Shares or Share Termination Delivery Units, as the case may be, so that the realized net proceeds of such sales exceed the amount of the Payment Obligation (in the case of clause (x), or
in the case that both clause (x) and clause (y) apply) or the Freely Tradeable Value (in the case that only clause (y) applies)(such amount of the Payment Obligation or Freely Tradeable Value, as the case may be, the “Required
Proceeds”). If any of such delivered Shares or Share Termination Delivery Units remain after such realized net proceeds exceed the Required Proceeds, Dealer shall return such remaining Shares or Share Termination Delivery Units to Issuer.
If the Required Proceeds exceed the realized net proceeds from such resale, Issuer shall transfer to Dealer by the open of the regular trading session on the Exchange on the Exchange Trading Day immediately following the last day of the Resale
Period the amount of such excess (the “Additional Amount”) in cash or in a number of additional Shares (“Make-whole Shares”) in an amount that, based on the Relevant Price on the last day of the Resale Period (as if
such day was the “Valuation Date” for purposes of computing such Relevant Price), has a dollar value equal to the Additional Amount. The Resale Period shall continue to enable the sale of the Make-whole Shares in the manner contemplated by
this Section 8(c). This provision shall be applied successively until the Additional Amount is equal to zero, subject to Section 8(e). 
  

 13 

 For purposes of the second sentence set forth opposite “Net Share Settlement” above, the last
sentence of Section 8(a), Section 8(b) and 8(c), the term “Shares” shall be deemed to include any Convertible Preferred Shares delivered pursuant to Section 8(e). 
 (d) Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this Confirmation, in no event shall Buyer be entitled to
receive, or shall be deemed to receive, any Shares if, immediately upon giving effect to such receipt of such Shares, (i) the “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated
thereunder) of Shares by Buyer, any of its affiliates subject to aggregation with Buyer for the 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 Buyer with respect to “beneficial ownership” of any Shares (collectively, “Buyer Group”) would be equal to or greater than 8.5% or more of the outstanding Shares
or (ii) the “Beneficial Ownership” (as defined in the Rights Agreement by and between Issuer and Stocktrans, Inc., as Rights Agent, dated September 10, 1998 (the “Rights Agreement”)) of Buyer, together with all
of its Affiliates and Associates (each as defined in the Rights Agreement) (collectively, the “Rights Agreement Buyer Group”), would be equal to or greater than 18% of the outstanding Shares. If any delivery owed to Buyer hereunder
is not made, in whole or in part, as a result of this provision, Issuer’s obligation to make such delivery shall not be extinguished and Issuer shall make such delivery as promptly as practicable after, but in no event later than one Exchange
Business Day after, Buyer gives notice to Issuer that such delivery would not result in (i) Buyer Group directly or indirectly so beneficially owning in excess of 8.5% of the outstanding Shares or (ii) the Rights Agreement Buyer Group
directly or indirectly so Beneficially Owning in excess of 18% of the outstanding Shares. 
 (e) Limitations on Settlement by Issuer.
Notwithstanding anything herein or in the Agreement to the contrary, in no event shall Issuer be required to deliver Shares in connection with the Transaction in excess of 1,600,000 Shares (as such number may be adjusted from time to time in
accordance with the provisions hereof) (the “Capped Number”). Issuer represents and warrants to Dealer and Hedging Party (which representation and warranty shall be deemed to be repeated on each day that the Transaction is
outstanding) that the Capped Number is equal to or less than the number of authorized but unissued Shares of the Issuer that are not reserved for future issuance in connection with transactions in the Shares (other than the Transaction) on the date
of the determination of the Capped Number (such Shares, the “Available Shares”), and Issuer further agrees that it shall keep available and not reserved for future issuance for purposes other than settlement of the Transaction at
least 5,528 authorized but unissued shares of preferred stock. Following the Trade Date, Issuer agrees to use best efforts to obtain approval from its shareholders (including without limitation, to seek such approval at its next annual meeting of
Shareholders and, if needed, the annual meeting for each following calendar year) to increase the number of authorized but unissued Shares such that the number of Available Shares shall be equal to at least two times the aggregate Number of Shares
for all Components. Upon Issuer obtaining such approval for such an increase, the Capped Number shall automatically increase to two times the aggregate Number of Shares for all Components. If Issuer does not succeed in obtaining such approval for
such an increase at or prior to its fourth annual meeting of shareholders following the Trade Date, then an Additional Termination Event shall occur and be continuing with respect to which the Transaction (or a portion of the Transaction, at the
discretion of the Calculation Agent) shall be the sole Affected Transaction and Issuer shall be the sole Affected Party until Issuer succeeds in getting such approval. In the event Issuer shall not have delivered the full number of Shares otherwise
deliverable as a result of this Section 8(e) (the resulting deficit, the “Deficit Shares”) and the Capped Number has not been increased pursuant to the foregoing provisions, Issuer shall, in lieu of delivering the Deficit
Shares otherwise deliverable, on the date the delivery of Deficit Shares would have been due, deliver a number of Convertible Preferred Shares (as defined below) equal to the number of Deficit Shares divided by 909 (rounded up to the nearest
whole number, or rounded down with value of the fractional Share payable in cash, at Issuer’s election). “Convertible Preferred Shares” means a newly created series of preferred shares of Issuer the terms of which shall be
reasonably acceptable to Dealer including that (1) each shall be convertible, subject to the Share Issuance Conditions (as defined below) into 1,000 Shares, (2) such conversion right shall be limited to allow conversion into Shares only to
the extent that (A) Shares are repurchased, acquired or otherwise received by Issuer or any of its subsidiaries after such delivery date (whether or not in exchange for cash, fair value or any other consideration), (B) authorized and
unissued Shares reserved for issuance in respect of other transactions prior to such delivery date which prior to the relevant date become no longer so reserved and (C) Issuer 

  

 14 

 
additionally authorizes any unissued Shares that are not reserved for other transactions (such conditions as set forth in clauses (A), (B) and
(C) above, collectively, the “Share Issuance Conditions”) and (3) shall require Issuer to immediately notify the holder thereof of the occurrence of any of the Share Issuance Conditions (including the number of Shares
subject to clause (A), (B) or (C) and the corresponding number of Shares to be delivered) and promptly deliver such Shares upon conversion thereafter. Issuer shall not in any event be required to deliver in excess of 5,528 Convertible
Preferred Shares hereunder. If there are any Deficit Shares after the Capped Number has been increased to two times the aggregate Number of Shares for all Components, Issuer shall be continually obligated to deliver, from time to time until the full
number of Deficit Shares have been delivered pursuant to this paragraph, Shares when, and to the extent, that the Share Issuance Conditions allow such deliveries. Issuer shall immediately notify Dealer of the occurrence of any of the Share Issuance
Conditions (including the number of Shares subject thereto and the corresponding number of Shares to be delivered or into which Convertible Preferred Shares have become convertible) and promptly deliver such Shares thereafter (or, if Convertible
Preferred Shares have been delivered, upon conversion thereof). The Convertible Preferred Shares shall provide for payment of dividends equal to the aggregate dividends paid on the full number of Shares into which the Convertible Preferred Shares
would be convertible if Issuer had unlimited authorized and unissued Shares. For the avoidance of doubt, the parties acknowledge that the Issuer will not be required to pay cash to settle the Transaction by reason of the fact that it
owes Deficit Shares, and any Convertible Preferred Shares will not be redeemable for, or convertible into, or settled with, cash (except in the case of a merger or similar event to the extent that holders of Shares receive cash as consideration
or proceeds in such event). Except as required by law and as to matters that would adversely affect the rights of the Convertible Preferred Shares relative to the Shares, the holders of Convertible Preferred Shares shall have no voting rights.

 (f) Equity Rights. Buyer acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the
Transaction that are senior to the claims of common stockholders in the event of Issuer’s bankruptcy. For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during Issuer’s
bankruptcy to any claim arising as a result of a breach by Issuer of any of its obligations under this Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that this Confirmation is not secured by any collateral that
would otherwise secure the obligations of Issuer herein under or pursuant to any other agreement. 
 (g) Agreement in Respect of
Termination Amounts. In determining any amounts payable in respect of the termination or cancellation of the Transaction pursuant to Section 6 of the Agreement or Article 12 of the Equity Definitions, the Calculation Agent shall make such
determination without regard to (i) changes to costs of funding, stock loan rates or expected dividends, or (ii) losses or costs incurred by either Dealer or Hedging Party in connection with terminating, liquidating or re-establishing any
hedge related to the Transaction (or any gain resulting from any of them). 
 (h) Transfer and Assignment. Buyer may transfer or
assign its rights and obligations hereunder and under the Agreement, in whole or in part, at any time without the consent of Issuer to any bank or broker-dealer or any affiliate thereof that in either case regularly enters into over-the-counter
equity derivative transactions. Notwithstanding any other provision of this Confirmation to the contrary requiring or allowing Buyer to receive or deliver any Shares, Buyer may designate any of its affiliates to receive or deliver such Shares and
otherwise perform Buyer’s obligations in respect of the Transaction and any such designee may assume such obligation. Buyer shall be discharged of its obligation hereunder only to the extent of any such performance. 
 (i) Disclosure. Effective from the date of commencement of discussions concerning the Transaction, Issuer and each of its employees,
representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided
to Issuer relating to such tax treatment and tax structure. 
 (j) Additional Termination Events. The occurrence of any of the
following shall constitute an Additional Termination Event with respect to which the Transaction shall be the sole Affected Transaction and Issuer shall be the sole Affected Party; provided that with respect to any Additional Termination
Event, Dealer may choose to treat part of the Transaction as the sole Affected Transaction, and, upon the termination of the Affected Transaction, a Transaction with terms identical to those set forth 

  

 15 

 
herein except with a Number of Warrants equal to the unaffected number of Warrants shall be treated for all purposes as the Transaction, which shall remain
in full force and effect: 
 (i) within the period commencing on the Trade Date and ending on the second anniversary of the
Premium Payment Date, Hedging Party reasonably determines that it is advisable for Buyer to terminate a portion of the Transaction so that Hedging Party’s related hedging activities will comply with applicable securities laws, rules or
regulations; 
 (ii) any Person (as defined below) acquires beneficial ownership (determined in accordance with Rule 13d-3
under the Exchange Act), directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of Shares entitling the Person to exercise 50% or more of the total voting power of all shares of Issuer’s
capital stock entitled to vote generally in elections of directors, other than an acquisition by Issuer, any of Issuer’s subsidiaries or any of Issuer’s employee benefit plans; 
 (iii) Issuer (x) merges or consolidates with or into any other Person, other than a subsidiary of Issuer, another Person merges with
or into Issuer, or Issuer conveys, sells, transfers or leases all or substantially all of its assets to another Person or (y) engages in any recapitalization, reclassification or other transaction in which all or substantially all Shares are
exchanged for or converted into cash, securities or other property, in each case, other than any merger or consolidation: 
 (A) that does not result in a reclassification, conversion, exchange or cancellation of the outstanding Shares; 
 (B) pursuant to which the consideration received by holders of Shares immediately prior to the transaction entitles such holders to exercise, directly or indirectly, 50% or more of the voting power of all shares of capital stock entitled to
vote generally in the election of directors of either (x) the continuing or surviving corporation or (y) a corporation that directly or indirectly owns 100% of the capital stock of such continuing or surviving corporation, in either case,
immediately after such transaction; 
 (C) which is effected solely to change Issuer’s jurisdiction of incorporation and
results in a reclassification, conversion or exchange of the outstanding Shares solely into shares of common stock of the surviving entity; or 
 (iv) at any time Issuer’s Continuing Directors (as defined below) do not constitute a majority of Issuer’s board of directors (or, if applicable, a successor Person to Issuer). 
 Notwithstanding the foregoing, a transaction set forth in clause (ii), (iii) or (iv) above will not constitute an Additional Termination Event
if at least 90% of the consideration paid for the Shares (excluding cash payments for fractional shares and cash payments made pursuant to dissenters’ appraisal rights and cash dividends) in such merger or consolidation or such other
transaction otherwise constituting an Additional Termination Event under clause (iii) above consists of shares of capital stock or American Depositary Receipts in respect of shares of capital stock traded on any of the New York Stock Exchange,
the American Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or any of their respective successors) (or will be so traded or quoted immediately following the completion of the merger or consolidation or such other
transaction) (“Listed Shares”). 
 “Person” includes any syndicate or group that would be deemed to be a
“person” under Section 13(d)(3) of the Exchange Act. 
 “Continuing Directors” means (i) individuals who
on the date hereof constituted Issuer’s board of directors and (ii) any new directors whose election to Issuer’s board of directors or whose nomination for election by Issuer’s stockholders was approved by at least a majority of
Issuer’s directors then still in office (or a duly constituted committee thereof), either who were directors on the date hereof or whose election or 

  

 16 

 
nomination for election was previously so approved. 
 (k) Effectiveness. If, prior to the Effective Date, Hedging Party reasonably determines that Hedging Party’s hedging activities under any Hedging Party Related Transaction could be viewed as not complying with applicable
securities laws, rules or regulations, the Transaction shall be cancelled and shall not become effective, and neither party shall have any obligation to the other party in respect of the Transaction. 
 (l) Extension of Settlement. The Calculation Agent may divide any Component into additional Components and designate the Expiration Date and the
Number of Warrants for each such Component if the Calculation Agent determines, in its reasonable discretion, that such further division is necessary or advisable to preserve Hedging Party’s hedging activity under any Hedging Party Related
Transaction in light of existing liquidity conditions or to enable Hedging Party to effect purchases of Shares in connection with its hedging activity under such Hedging Party Related Transaction in a manner that would, if Hedging Party were Issuer
or an affiliated purchaser of Issuer, be in compliance with applicable legal and regulatory requirements. 
 (m) Governing Law.
THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE). 
 (n)
No Set-off. The provisions of Section 2(c) of the Agreement shall not apply to the Transaction. Each party waives any and all rights it may have to set-off delivery or payment obligations it owes to the other party under the Transaction
against any delivery or payment obligations owed to it by the other party, whether arising under the Agreement, under any other agreement between parties hereto, by operation of law or otherwise. 
 (o) Amendment. If the Underwriters party to the Underwriting Agreement exercise their right to purchase additional convertible notes as set forth
therein, then, at the discretion of Issuer, Issuer may elect that Dealer and Issuer will either enter into a new confirmation evidencing additional warrants to be issued by Issuer to Dealer or amend this Confirmation to evidence such additional
warrants (in each case on pricing terms acceptable to Dealer and Issuer) (such additional confirmation or amendment to this Confirmation to provide for the payment by Dealer to Issuer of the additional premium related thereto in an amount to be
agreed between the parties). 
 (p) Counterparts. This Confirmation may be executed in several counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same instrument. 
 (q) Lock Up. Prior to the first
anniversary of the Trade Date, if the Underwriters party to the Underwriting Agreement exercise their right to purchase additional convertible notes set forth therein and Issuer does not elect to issue the maximum number of Additional Warrants as
provided in paragraph (o) above, Issuer shall not issue or enter into any warrant, a call option, a variable forward or other derivative linked to the Shares (collectively, “Warrants”), whether cash settled and/or physically
settled and/or net share settled, without a prior written consent of Dealer which shall not be unreasonably withheld, unless such Warrants are issued (i) pursuant to any present or future employee, director or consultant benefit plan or program
of Issuer or any hedging arrangements in respect thereof, (ii) to all Issuer’s stockholders as a free distribution or a distribution for less than the fair market value of such Warrants (as determined by the Calculation Agent),
(iii) as part of mandatorily convertible units in a bona fide capital raising transaction unrelated to the convertible notes sold pursuant to the Purchase Agreement, or (iv) as part of a bona fide Share repurchase transaction unrelated to
the convertible notes sold pursuant to the Purchase Agreement. “Additional Warrants” shall equal to the product of (i) the Warrant Entitlement, (ii) the initial conversion rate of the convertible notes and (iii) the
aggregate principal amount of the additional convertible notes purchased by the Underwriters divided by USD1,000. 
 (r) Early Termination
or Cancellation. Notwithstanding anything to the contrary in the Equity Definitions or the Agreement, to the extent that Dealer would otherwise have the right under the Equity Definitions or the Agreement to elect to cancel the Transaction, to
designate an Early Termination 

  

 17 

 
Date in respect of the Transaction or to determine any amount due upon the cancellation or early termination of the Transaction, the Calculation Agent shall
make such election, designation or determination, as the case may be, in place of Dealer. 
 (s) Third Party Beneficiary. GS shall be
the third party beneficiary of Issuer’s representations, warranties, agreements, indemnities and other obligations hereunder and will have a right to directly enforce those obligations against Issuer. 
 9. Arbitration. 
 (a) All
parties to this Confirmation are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed. 
 (b) Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited.

 (c) The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration
than in court proceedings. 
 (d) The arbitrators do not have to explain the reason(s) for their award. 
 (e) The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry, unless Issuer
is a member of the organization sponsoring the arbitration facility, in which case all arbitrators may be affiliated with the securities industry. 
 (f) The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court. 
 (g) The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Confirmation.

 (h) Issuer agrees that any and all controversies that may arise between Issuer and Dealer, including, but not limited to, those
arising out of or relating to the Agreement or the Transaction hereunder, shall be determined by arbitration conducted before The New York Stock Exchange, Inc. (“NYSE”) or NASD Dispute Resolution (“NASD-DR”), or, if the NYSE and
NASD-DR decline to hear the matter, before the American Arbitration Association, in accordance with their arbitration rules then in force. The award of the arbitrator shall be final, and judgment upon the award rendered may be entered in any court,
state or federal, having jurisdiction. 
 (i) No person shall bring a putative or certified class action to arbitration, nor seek to
enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative
class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) Issuer is excluded from the class by the court. 
 (j) Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Confirmation except to the extent stated herein. 
  

 18 

 Issuer hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so that
errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Issuer with respect to the
Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Wells Fargo Bank, National Association,
Facsimile No. (415) 646-9208, with a copy to Goldman, Sachs & Co., Equity Derivatives Documentation Department, Facsimile No. (212) 428-1980/83. 
  

	
	Yours faithfully,
	
	WELLS FARGO BANK, NATIONAL
ASSOCIATION
	 Gordy Holterman
 Authorized
Signatory

  

			
	Agreed and Accepted By:
	
	VIROPHARMA INCORPORATED
		
	By:	 	 /s/ Michel de Rosen

	Name:	 	Michel de Rosen
	Title:	 	President and CEO

  

 19 

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

					
	 Component Number
	 	 Number of Warrants
	 	 Expiration Date

	1	 	49,687	 	June 13, 2017
	2	 	49,687	 	June 14, 2017
	3	 	49,687	 	June 15, 2017
	4	 	49,687	 	June 16, 2017
	5	 	49,687	 	June 19, 2017
	6	 	49,687	 	June 20, 2017
	7	 	49,687	 	June 21, 2017
	8	 	49,687	 	June 22, 2017
	9	 	49,687	 	June 23, 2017
	10	 	49,687	 	June 26, 2017
	11	 	49,687	 	June 27, 2017
	12	 	49,687	 	June 28, 2017
	13	 	49,687	 	June 29, 2017
	14	 	49,687	 	June 30, 2017
	15	 	49,687	 	July 3, 2017
	16	 	49,687	 	July 5, 2017
	17	 	49,687	 	July 6, 2017
	18	 	49,687	 	July 7, 2017
	19	 	49,687	 	July 10, 2017
	20	 	49,687	 	July 11, 2017
	21	 	49,687	 	July 12, 2017
	22	 	49,687	 	July 13, 2017
	23	 	49,687	 	July 14, 2017
	24	 	49,687	 	July 17, 2017
	25	 	49,687	 	July 18, 2017
	26	 	49,687	 	July 19, 2017
	27	 	49,687	 	July 20, 2017
	28	 	49,687	 	July 21, 2017
	29	 	49,687	 	July 24, 2017
	30	 	49,687	 	July 25, 2017
	31	 	49,687	 	July 26, 2017
	32	 	49,687	 	July 27, 2017
	33	 	49,687	 	July 28, 2017
	34	 	49,687	 	July 31, 2017
	35	 	49,687	 	August 1, 2017
	36	 	49,687	 	August 2, 2017
	37	 	49,687	 	August 3, 2017
	38	 	49,687	 	August 4, 2017
	39	 	49,687	 	August 7, 2017
	40	 	49,687	 	August 8, 2017
	41	 	49,687	 	August 9, 2017
	42	 	49,687	 	August 10, 2017
	43	 	49,688	 	August 11, 2017
	44	 	49,688	 	August 14, 2017
	45	 	49,688	 	August 15, 2017
	46	 	49,688	 	August 16, 2017
	47	 	49,688	 	August 17, 2017
	48	 	49,688	 	August 18, 2017
	49	 	49,688	 	August 21, 2017
	50	 	49,688	 	August 22, 2017
	51	 	49,688	 	August 23, 2017

  

 20 

					
	52	 	49,688	 	August 24, 2017
	53	 	49,688	 	August 25, 2017
	54	 	49,688	 	August 28, 2017
	55	 	49,688	 	August 29, 2017
	56	 	49,688	 	August 30, 2017
	57	 	49,688	 	August 31, 2017
	58	 	49,688	 	September 1, 2017
	59	 	49,688	 	September 5, 2017
	60	 	49,688.75	 	September 6, 2017

  

 21

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