Document:

Convertible Bond Hedge Transaction Confirmation

 Exhibit 10.7 
  

			
		  	 Deutsche Bank

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

  

					
	DATE:	  	As of April 9, 2008	  	
			
	TO:	  	Endo Pharmaceuticals Holdings Inc.	  	
	ATTENTION:	  	Chief Legal Officer	  	
	TELEPHONE:	  	610-558-9800	  	
	FACSIMILE:	  	610-558-9684	  	
			
	FROM:	  	Deutsche Bank AG, London Branch	  	
	TELEPHONE:	  	44 20 7545 0556	  	
	FACSIMILE:	  	44 11 3336 2009	  	
			
	SUBJECT:	  	Equity Derivatives Confirmation	  	
			
	REFERENCE NUMBER(S):	  	252010	  	

 The purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and
conditions of the transaction entered into between Deutsche Bank AG, London Branch (“Deutsche”) and Endo Pharmaceuticals Holdings Inc. (“Counterparty”) on the Trade Date specified below (the
“Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. This Confirmation constitutes the entire agreement and understanding of the parties with respect
to the subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and oral communications with respect thereto. 
 DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. DEUTSCHE BANK SECURITIES INC. (“AGENT”) HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION AND HAS
NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION. DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

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

			
	 Chairman of the Supervisory Board: Clemens Börsig
 Board of Managing Directors: Hermann-Josef Lamberti, Josef Ackermann, Anthony Dilorio, Hugo Banziger
	 	Deutsche Bank AG is regulated by the FSA for the conduct of designated investment business in the UK, is a member of the London Stock Exchange and is a limited liability company incorporated
in the Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am Main; Branch Registration No. in England and Wales BR000005, Registered address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.

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

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

  

			
	General:	  	
		
	Trade Date:	  	April 9, 2008.
		
	Effective Date:	  	The closing date for the initial issuance of the Convertible Notes.
		
	Transaction Style:	  	Modified American, as described below under “Procedure for Exercise”.
		
	Transaction Type:	  	Note Hedging Units.
		
	Seller:	  	Deutsche.
		
	Buyer:	  	Counterparty.
		
	Shares:	  	The common stock, par value USD 0.01 per share, of Counterparty (Ticker Symbol: “ENDP”).
		
	Convertible Notes:	  	1.75% Senior Subordinated Convertible Notes of Counterparty due April 15, 2015, offered pursuant to an Offering Memorandum dated April 9, 2008 (“Offering Memorandum”) and
issued pursuant to the indenture to be dated on or about April 15, 2008, by and between Counterparty and The Bank of New York, as trustee (as may be amended, modified or supplemented from time to time, but only if such amendment, modification or
supplement is consented by Deutsche in writing, the “Indenture”). Certain defined terms used herein have the meanings assigned to them in the Indenture. In the event of any inconsistency between the terms defined in the Indenture
and this Confirmation, this Confirmation shall govern. For the avoidance of doubt, references herein to sections of the Indenture are based on the draft of the Indenture most recently reviewed by the parties at the time of execution of this
Confirmation. If any relevant sections of the Indenture are changed, added or renumbered following execution of this Confirmation, the parties will amend this Confirmation in good faith to preserve the economic intent of the
parties.
		
	Number of Note Hedging Units:	  	379,500.

  

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	Note Hedging Unit Entitlement:	  	USD 1,000 divided by the Strike Price. Notwithstanding anything to the contrary herein or in the Agreement (including without limitation the provisions of Calculation Agent Adjustment), in no
event shall the Note Hedging Unit Entitlement at any time be greater than the “Conversion Rate” (as defined in the Indenture) at such time.
		
	Strike Price:	  	USD 29.20.
		
	Premium:	  	As provided in Annex A to this Confirmation.
		
	Premium Payment Date:	  	The Effective Date.
		
	Exchange:	  	The NASDAQ Global Select Market.
		
	Related Exchanges:	  	All Exchanges.
		
	Calculation Agent:	  	Deutsche.
		
	Procedure for Exercise:	  	
		
	Potential Exercise Dates:	  	Each Conversion Date.
		
	Conversion Date:	  	Each “Conversion Date”, as defined in the Indenture.
		
	Required Exercise on Conversion Dates:	  	On each Conversion Date, a number of Note Hedging Units equal to the number of Convertible Notes in denominations of USD 1,000 principal amount submitted for conversion in respect of such
Conversion Date in accordance with the terms of the Indenture shall be exercised automatically, subject to “Notice of Exercise” below; provided that if Counterparty has made an “Exchange Election” pursuant to the
“Exchange in Lieu of Conversion” provisions of Section 5.14 of the Indenture, the applicable Convertible Notes shall remain outstanding and the related number of Note Hedging Units shall not be exercised.
		
	Expiration Date:	  	April 15, 2015.
		
	Multiple Exercise:	  	Applicable, as provided under “Required Exercise on Conversion Dates”.
		
	Automatic Exercise:	  	As provided under “Required Exercise on Conversion Dates”.
		
	Notice of Exercise:	  	Notwithstanding anything to the contrary in the Equity Definitions, in order to exercise any Note Hedging Units, Counterparty must notify Deutsche in writing (and use reasonable efforts to
confirm receipt by telephone to Deutsche’s Convertible Desk (telephone: 212-250-5600)) prior to 5:00 PM, New York City time, on the Scheduled Trading Day prior to the first day of the “Conversion Period”, as defined in the Indenture,
relating to the Convertible Notes converted on the Conversion Date relating to the relevant Exercise Date (the “Notice Deadline”) of (i) the number of Note Hedging Units being exercised on such Exercise Date, (ii) the scheduled
commencement date of the “Conversion Period”

  

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		  	and the scheduled settlement date under the Indenture for the Convertible Notes converted on the Conversion Date corresponding to such Exercise Date and (iii) the applicable “Specified
Dollar Amount”, as defined in the Indenture, provided that the “Specified Dollar Amount” shall be deemed USD 1,000 for purposes of calculating the Settlement Amount (as defined below) if such notice does not specify the
“Specified Dollar Amount”; provided further that, notwithstanding the foregoing, such notice shall be effective if given after the Notice Deadline referred to above, but prior to 5:00 PM New York City time, on the fifth Scheduled Trading
Day of such “Conversion Period”, in which event the Calculation Agent shall have the right to adjust the Settlement Amount as appropriate to reflect the additional costs (including, but not limited to, hedging mismatches and market losses)
and expenses actually incurred by Deutsche in connection with its hedging activities (including the unwinding of any hedge position) as a result of Deutsche not having received such notice prior to the Notice Deadline; provided further that in
respect of Convertible Notes converted during the period beginning on, and including the 45th scheduled “Trading Day”, as defined in the Indenture, prior to the “Final Maturity Date”, as defined in the Indenture, and ending on
the second “Business Day”, as defined in the Indenture, immediately preceding the “Final Maturity Date”, (x) the Notice Deadline in respect of the information set forth in clauses (i) and (ii) above shall be the second
“Business Day” immediately preceding the “Final Maturity Date”, (y) the Notice Deadline in respect of the information set forth in clause (iii) above shall be 5:00 PM, New York City time, on the Scheduled Trading Day prior to the
first day of the “Conversion Period” relating to the relevant Convertible Notes and (z) late notice shall not be permitted pursuant to the immediately preceding provisio.
		
	Settlement Terms:	  	
		
	Net Share Settlement:	  	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above, in respect of any Exercise Date occurring on a
Conversion Date, Deutsche shall deliver to Counterparty, on the related Settlement Date, the Settlement Amount. For the avoidance of doubt, to the extent Deutsche is obligated to deliver Shares hereunder, the provisions of Sections 9.8, 9.9, 9.11
and 9.12 of the Equity Definitions shall be applicable to any such delivery of Shares, except that all references in such provisions to “Physical Settlement” and “Physically-settled” shall be read as references to “Net Share
Settlement” and “Net Share Settled”; and provided that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions,
obligations, limitations or requirements under applicable securities laws as a result of the fact that Counterparty is the issuer of the Shares.

  

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	Settlement Amount:	  	 A number of Shares and/or amount of cash in USD equal to:
  
 (a) if the applicable “Specified Dollar Amount” is equal to zero, a number of shares equal to the lesser of (1) the sum, for each “Trading Day” during
the related “Conversion Period”, of the greater of (x) the “Daily Net Share Settlement Value” calculated as if the “Specified Dollar Amount” were USD 1,000 and (y) zero and (2) the result of clause (1) determined as if
the “Daily Conversion Value” for each “Trading Day” during the related “Conversion Period” were the “Daily Conversion Value” on the last “Trading Day” of such “Conversion Period” (each as
defined in the Indenture);
  
 (b) if the applicable “Specified Dollar Amount”
is greater than zero and less than or equal to USD 1,000, a number of shares equal to the sum, for each “Trading Day” during the related “Conversion Period”, of the greater of (1) the “Daily Net Share Settlement Value”,
calculated as if the “Specified Dollar Amount” (each as defined in the Indenture) were USD 1,000 and (2) zero; or
  
 (c) if the applicable “Specified Dollar Amount” is greater than USD 1,000, (1) a number of shares equal to the sum, for each “Trading Day” during the
related “Conversion Period”, of the greater of (x) the “Daily Net Share Settlement Value”, and (y) zero, and (2) an amount of cash equal to the sum, for each “Trading Day” during the related “Conversion
Period”, of (i) the excess, if any, of the lesser of the “Daily Conversion Value” and the “Daily Measurement Value” (each as defined in the Indenture), over (ii) USD 25;
  
 provided that such obligation shall be determined excluding any Shares or cash that
Counterparty is obligated to deliver to holder(s) of the Convertible Notes as a result of any adjustments to the “Conversion Rate” for the issuance of additional shares or cash as set forth in Section 4.02 of the Indenture or any voluntary
adjustment pursuant to Section 5.08 or Section 5.09 of the Indenture; provided further that, if such exercise relates to the conversion of Convertible Notes in connection with which holders thereof are entitled to receive additional Shares or cash
pursuant to the adjustments to the “Conversion Rate” set forth in Section 4.02 of the Indenture, then, notwithstanding the foregoing, the Settlement Amount shall include such additional Shares or cash, except that the Settlement Amount
shall be capped so that the value of the Settlement Amount per Note Hedging Unit (with the value of the Shares included in the Settlement Amount determined by the Calculation Agent using the volume-weighted average price on the last day of the
relevant “Conversion Period”) does not exceed the amount as determined by the Calculation Agent that would be payable by Seller pursuant to Section 6 of the Agreement if such Conversion Date were an Early Termination Date resulting from an
Additional Termination Event with respect to which the Transaction (except that, for purposes of determining such amount the Number of Note Hedging Units shall be deemed to be equal to the number of Note Hedging Units exercised on such Exercise
Date) was the sole Affected Transaction and Counterparty was the sole Affected Party (determined without regard to provisions under “Alternative Calculations and Deutsche Payment on Early

  

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		  	 Termination and on Certain Extraordinary Events” in this Confirmation). If Counterparty is permitted or required to exercise
discretion under the terms of the Indenture with respect to any determination, calculation or adjustment relevant to conversion of the Convertible Notes including, but not limited to, the volume-weighted average price of the Shares, Counterparty
shall consult with Deutsche with respect thereto (except for the determination of the “Specified Dollar Amount”, as defined in the Indenture) and the Calculation Agent shall make such determination, calculation or adjustment for purposes
of the Transaction. For the avoidance of doubt, if the “Daily Conversion Value” for each of the 40 “Trading Days” in the relevant “Conversion Period”, each as defined in the Indenture, is less than or equal to USD 25,
Deutsche will have no delivery obligation hereunder.
  
 Notwithstanding anything to the
contrary above, in no event shall Deutsche be obligated to deliver a Settlement Amount with a value in excess of the value (determined on the same basis) of what Counterparty is obligated to deliver in respect of the relevant Convertible Notes,
reduced by USD 1000 per note.

		
	Notice of Delivery Obligation:	  	No later than the Scheduled Trading Day immediately following the last day of the “Conversion Period”, as defined in the Indenture, Counterparty shall give Deutsche notice of the final
number of Shares and/or cash comprising the Settlement Amount and the Settlement Date (it being understood, for the avoidance of doubt, that the requirement of Counterparty to deliver such notice shall not limit Counterparty’s obligations with
respect to Notice of Exercise, as set forth above, in any way or Deutsche’s obligation to deliver the Settlement Amount promptly following any late Notice of Delivery Obligation).
		
	Settlement Date:	  	In respect of an Exercise Date occurring on a Conversion Date, the settlement date for the Shares or cash to be delivered under the Convertible Notes under the terms of the Indenture;
provided that the Settlement Date will not be prior to the date that is one Settlement Cycle following the final day of the “Conversion Period”, as defined in the Indenture.
		
	Settlement Currency:	  	USD.
		
	Restricted Certificated Shares:	  	Notwithstanding anything to the contrary in the Equity Definitions, Deutsche may, in whole or in part, deliver Shares in certificated form representing the Share portion of the Settlement Amount
to Counterparty in lieu of delivery through the Clearance System.
		
	Share Adjustments:	  	
		
	Potential Adjustment Events:	  	Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential Adjustment Event” means any occurrence of any event or condition, as set forth in Section 5.06 of the Indenture,
that would result in an adjustment to the “Conversion Rate” of the Convertible Notes; provided that in no event shall there be any adjustment hereunder as a result of an adjustment to the “Conversion Rate” pursuant to
Section 4.02, Section 5.08 or Section 5.09 of the Indenture.

  

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	Method of Adjustment:	  	Calculation Agent Adjustment, which means that, notwithstanding Section 11.2(c) of the Equity Definitions, upon any adjustment to the “Conversion Rate” of the Convertible Notes
pursuant to the Indenture (other than Section 4.02, Section 5.08 or Section 5.09 of the Indenture), the Calculation Agent shall make a corresponding adjustment to any one or more of the Strike Price, Number of Note Hedging Units, the Note Hedging
Unit Entitlement and any other variable relevant to the exercise, settlement, payment or other terms of the Transaction.
		
	Extraordinary Events:	  	
		
	Merger Events:	  	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition set forth in Section 5.11 of the
Indenture.
		
	Notice of Merger Consideration:	  	Upon the occurrence of a Merger Event that causes the Shares to be converted into or exchanged for more than a single type of consideration (determined based in part upon the form of election
of the holders of Shares), Counterparty shall promptly (but in any event prior to the effective date of the Merger Event) notify the Calculation Agent of “Reference Property”, as defined in the Indenture, to result from such Merger Event.

		
	Consequences of Merger Events:	  	Notwithstanding Section 12.2 of the Equity Definitions, upon the occurrence of a Merger Event, the Calculation Agent shall make the corresponding adjustment in respect of any adjustment under
the Indenture to any one or more of the nature of the Shares, the Strike Price, the Number of Note Hedging Units, the Note Hedging Unit Entitlement and any other variable relevant to the exercise, settlement, payment or other terms of the
Transaction, to the extent an analogous adjustment is made under the Indenture; provided that such adjustment shall be made without regard to any adjustment to the “Conversion Rate” for the issuance of additional shares or cash as
set forth in Section 4.02 of the Indenture or any voluntary adjustment pursuant to Section 5.08 or Section 5.09 of the Indenture.
		
	Nationalization, Insolvency and Delisting:	  	Cancellation and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a
Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any U.S. national securities exchange; if the Shares are immediately re-listed, re-traded or re-quoted on any such
exchange, such exchange shall be deemed to be the Exchange. For the avoidance of doubt, the occurrence of any event that is a Merger Event and would otherwise have been a Delisting will have the consequence specified for the relevant Merger Event.

  

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	Additional Disruption Events:	  	
		
	Change in Law:	  	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended (i) by replacing the phrase “the interpretation” in the third line thereof with the
phrase “or public announcement of the formal or informal interpretation” and (ii) immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party on the
Trade Date”.
		
	Failure to Deliver:	  	Applicable
		
	Insolvency Filing:	  	Applicable
		
	Increased Cost of Hedging:	  	Not Applicable
		
	Determining Party:	  	Deutsche for all applicable Additional Disruption Events
		
	Acknowledgements:	  	
		
	Non-Reliance:	  	Applicable
		
	Agreements and Acknowledgements
Regarding Hedging Activities:	  	Applicable
		
	Additional Acknowledgements:	  	Applicable

 Mutual Representations: Each of Deutsche and Counterparty represents and warrants to, and agrees with, the
other party that: 
  

	 	(i)	Tax Disclosure. Notwithstanding anything to the contrary herein, in the Equity Definitions or in the Agreement, and notwithstanding any express or implied claims of
exclusivity or proprietary rights, the parties (and each of their employees, representatives or other agents) are authorized to disclose to any and all persons, beginning immediately upon commencement of their discussions and without limitation of
any kind, the tax treatment and tax structure of the Transaction, and all materials of any kind (including opinions or other tax analyses) that are provided by either party to the other relating to such tax treatment and tax structure.

  

	 	(ii)	Commodity Exchange Act. It is an “eligible contract participant” within the meaning of Section 1a(12) of the U.S. Commodity Exchange Act, as amended (the
“CEA”). The Transaction has been subject to individual negotiation by the parties. The Transaction has not been executed or traded on a “trading facility” as defined in Section 1a(33) of the CEA. It has entered into
the Transaction with the expectation and intent that the Transaction shall be performed to its termination date. 

  

	 	(iii)	Securities Act. It is a “qualified institutional buyer” as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), or an “accredited investor” as defined under the Securities Act. 

  

	 	(iv)	ERISA. The assets used in the Transaction (1) are not assets of any “plan” (as such term is defined in Section 4975 of the U.S. Internal Revenue Code (the
“Code”)) subject to Section 4975 of the Code or any “employee benefit plan” (as such term is defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)) subject to Title I of ERISA, and (2) do not constitute “plan assets” within the meaning of Department of Labor Regulation 2510.3-101, 29 CFR Section 2510-3-101. 

  

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 Counterparty Representations: In addition to the representations and warranties in the Agreement and those
contained elsewhere herein, Counterparty represents, warrants, acknowledges and covenants that: 
  

	 	(i)	Counterparty is not as of the Trade Date, and shall not be after giving effect to the transactions contemplated hereby, “insolvent” (as such term is defined in
Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)). 

  

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

  

	 	(iii)	Counterparty has (and shall at all times during the Transaction have) the capacity and authority to invest directly in the Shares underlying the Transaction and has not entered into
the Transaction with the intent to avoid any regulatory filings. 

  

	 	(iv)	Counterparty’s investments in and liabilities in respect of the Transaction, which it understands are not readily marketable, are not disproportionate to its net worth, and
Counterparty is able to bear any loss in connection with the Transaction, including the loss of its entire investment in the Transaction. 

	 	(v)	The representations and warranties of Counterparty set forth in Section 1 of the Purchase Agreement dated April 9, 2008 between Counterparty and Deutsche Bank Securities
Inc. as representative of the initial purchasers are true and correct and are hereby deemed to be repeated to Deutsche as if set forth herein. 

  

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

  

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

  

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

  

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

  

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	 	(x)	Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Deutsche is not making any representations or warranties with respect
to the treatment of the Transaction under FASB Statements 128, 133, 149 or 150 (or under any successor statement), EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements), under FASB’s Liabilities & Equity Project,
or under any other accounting guidance. 

  

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

  

	 	(xii)	Counterparty acknowledges its responsibilities under applicable law (including, without limitation, the Securities Act and Section 9 and Section 10(b) of the Exchange Act)
in connection with the Transaction. 

  

	 	(xiii)	The Transaction, and any repurchase of the Shares by Counterparty in connection with the Transaction, is pursuant to a publicly announced Share repurchase program that has been
approved by Counterparty’s board of directors (including engaging in derivative transactions) and any such repurchase has been, or shall when so required be, publicly disclosed in its periodic filings under the Exchange Act and its financial
statements and notes thereto. 

  

	 	(xiv)	Counterparty shall deliver to Deutsche an opinion of counsel, dated as of the Trade Date and reasonably acceptable to Deutsche in form and substance, with respect to the matters set
forth in Section 3(a) of the Agreement. 

 Miscellaneous: 
 Netting and Set-Off. The parties hereto agree that the Transaction shall not be subject to any right of netting or set off with any other
transaction, whether under any agreement or by operation of law. 
 Qualified Financial Contracts. It is the intention of the parties
that, in respect of Counterparty, (a) the Transaction shall constitute a “qualified financial contract” within the meaning of 12 U.S.C. Section 1821(e)(8)(D)(i) and (b) a Non-defaulting Party’s rights under Sections 5
and 6 of the Agreement constitute rights of the kind referred to in 12 U.S.C. Section 1821(e)(8)(A). 
 Method of Delivery.
Whenever delivery of funds or other assets is required hereunder by or to Counterparty, such delivery shall be effected through Agent. In addition, all notices, demands and communications of any kind relating to the Transaction between Deutsche and
Counterparty shall be transmitted exclusively through Agent. 
 Staggered Settlement. If upon advice of counsel with respect to
applicable legal and regulatory requirements or related policies and procedures applicable to Deutsche, Deutsche reasonably determines that it would not be advisable to deliver, or to acquire Shares to deliver, any or all of the Shares to be
delivered by Deutsche on a Settlement Date for the Transaction, Deutsche may, by notice to Counterparty prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares deliverable on such Nominal Settlement
Date on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows: (i) in such notice, Deutsche will specify to Counterparty the related Staggered Settlement Dates
(each of which will be on or prior to such Nominal Settlement Date, but not prior to the beginning of the related “Conversion Period”, as defined in the Indenture) or delivery times and how it will allocate the Shares it is required to
deliver under “Net Share Settlement” above among the Staggered Settlement Dates or delivery times; and (ii) the aggregate number of Shares that Deutsche will deliver to Counterparty hereunder on all such Staggered Settlement Dates and
delivery times will equal the number of Shares that Deutsche would otherwise be required to deliver on such Nominal Settlement Date. 
  

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 Additional Termination Events. The
occurrence of (i) an “Event of Default” with respect to Counterparty under the terms of the Convertible Notes, as set forth in Section 9.01 of the Indenture, that results in an acceleration of the Convertible Notes pursuant to
the terms of the Indenture or (ii) an Amendment Event shall be an Additional Termination Event, in each case with the Transaction as the sole Affected Transaction and Counterparty as the sole Affected Party. In the case of clause (i), Deutsche
shall designate an Early Termination Date no later than the 10th Scheduled Trading Day following Counterparty’s notice to Deutsche of such
acceleration. 
 “Amendment Event” means that Counterparty amends, modifies, supplements or obtains a waiver with respect to
any term of the Indenture or the Convertible Notes governing the principal amount, interest, maturity, repurchase obligation of Counterparty, redemption right of Counterparty, any term relating to conversion of the Convertible Notes (including
changes to the conversion price, conversion settlement dates or conversion conditions), or any term that would require consent of the holders of not less than 100% of the principal amount of the Convertible Notes to amend, in each case without the
prior consent of Deutsche, such consent not to be unreasonably withheld. For the avoidance of doubt, any changes to the “Conversion Rate” pursuant to Section 4.02, Section 5.06, Section 5.08 or Section 5.09 of the
Indenture shall not constitute an Amendment Event hereunder. 
 Disposition of Hedge Shares. Counterparty hereby agrees that if, in the
good faith reasonable judgment of Deutsche, the Shares (the “Hedge Shares”) acquired by Deutsche for the purpose of hedging its obligations pursuant to the Transaction cannot be sold in the public market by Deutsche without
registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Deutsche to sell the Hedge Shares in a registered offering, make available to Deutsche an effective registration statement under the Securities
Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in form and substance satisfactory to Deutsche, substantially in the form of an underwriting agreement for a registered offering, (B) provide accountant’s
“comfort” letters in customary form for registered offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Deutsche, (D) provide other
customary opinions, certificates and closing documents customary in form for registered offerings of equity securities and (E) afford Deutsche a reasonable opportunity to conduct a “due diligence” investigation with respect to
Counterparty customary in scope for underwritten offerings of equity securities; provided, however, that if Deutsche, in its sole reasonable discretion, is not satisfied with access to due diligence materials, the results of its due
diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this paragraph shall apply at the election of Counterparty; (ii) in order to allow
Deutsche to sell the Hedge Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance
satisfactory to Deutsche, including customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Deutsche, due diligence rights (for Deutsche or any designated buyer of the Hedge Shares from
Deutsche), opinions and certificates and such other documentation as is customary for private placements agreements, all reasonably acceptable to Deutsche (in which case, the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary, in its reasonable judgment, to compensate Deutsche for any discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from
Deutsche at the VWAP Price on such Exchange Business Days, and in the amounts, requested by Deutsche. “VWAP Price” means, on any Exchange Business Day, the per Share volume-weighted average price as displayed under the heading
“Bloomberg VWAP” on Bloomberg page ENDP.Q <equity> AQR (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange Business Day (or if such volume-weighted average price is
unavailable, the market value of one Share on such Exchange Business Day, as determined by the Calculation Agent using a volume-weighted method). This paragraph shall survive the termination, expiration or early unwind of the Transaction.

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

 11 

 No Collateral. Notwithstanding any provision of this Confirmation, the Agreement, Equity
Definitions, or any other agreement between the parties to the contrary, the obligations of Counterparty under the Transaction are not secured by any collateral. 
 Securities Contract; Swap Agreement. The parties hereto agree and acknowledge that Deutsche is a “financial institution,” “swap participant” and “financial participant” within the
meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7)
of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of
Section 362 of the Bankruptcy Code and a “settlement payment” or a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in
Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” a “payment amount” or “other transfer obligation” within the
meaning of Section 362 of the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Deutsche is entitled to the protections afforded by, among other sections,
Section 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code. 
 Repurchase Notices. Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, promptly give Deutsche a written notice of such repurchase (a “Repurchase Notice”) on such day if following
such repurchase, the Unit Equity Percentage as determined on such day differs by 0.5% or more from the Unit Equity Percentage included in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than
the Unit Equity Percentage as of the date hereof). The “Unit Equity Percentage” as of any day is the fraction (i) the numerator of which is the product of the number of Note Hedging Units and the Note Hedging Unit
Entitlement, and (ii) the denominator of which is the number of Shares outstanding on such day. Counterparty agrees to indemnify and hold harmless Deutsche and its affiliates and their respective officers, directors, employees, advisors, agents
and controlling persons (each, a “Section 16 Indemnified Person”) from and against any and all losses (including losses relating to Deutsche’s hedging activities as a consequence of becoming, or of the risk of becoming, a
Section 16 “insider”, including without limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to the Transaction), claims, damages, judgments,
liabilities and expenses (including reasonable attorney’s fees), joint or several, to which a Section 16 Indemnified Person may become subject, as a result of Counterparty’s failure to provide Deutsche with a Repurchase Notice on the
day and in the manner specified in this paragraph, and to reimburse, upon written request, each of such Section 16 Indemnified Persons for any reasonable legal or other expenses incurred in connection with investigating, preparing for,
providing testimony or other evidence in connection with or defending any of the foregoing. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the
Section 16 Indemnified Person, such Section 16 Indemnified Person shall promptly notify Counterparty in writing, and Counterparty, upon request of the Section 16 Indemnified Person, shall retain counsel reasonably satisfactory to the
Section 16 Indemnified Person to represent the Section 16 Indemnified Person and any others Counterparty may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding. Counterparty shall be
relieved from liability to the extent that the Section 16 Indemnified Person fails promptly to notify Counterparty of any action commenced against it in respect of which indemnity may be sought hereunder; provided, that failure to notify
Counterparty (x) shall not relieve Counterparty from any liability hereunder to the extent it is not materially prejudiced as a result thereof and (y) shall not, in any event, relieve Counterparty from any liability that it may have
otherwise than on account of this indemnity agreement. Counterparty shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff,
Counterparty agrees to indemnify any Section 16 Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Counterparty shall not, without the prior written consent of the Section 16 Indemnified
Person, effect any settlement of any pending or threatened proceeding in respect of which any Section 16 Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Section 16 Indemnified Person,

  

 12 

 
unless such settlement includes an unconditional release of such Section 16 Indemnified Person from all liability on claims that are the subject matter
of such proceeding on terms reasonably satisfactory to such Section 16 Indemnified Person. If the indemnification provided for in this paragraph is unavailable to a Section 16 Indemnified Person or insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then Counterparty, in lieu of indemnifying such Section 16 Indemnified Person thereunder, shall contribute to the amount paid or payable by such Section 16 Indemnified Person as a result
of such losses, claims, damages or liabilities. The remedies provided for in this paragraph are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Section 16 Indemnified Person at law or in equity.
The indemnity and contribution agreements contained in this paragraph shall remain operative and in full force and effect regardless of the termination of the Transaction. 
 Alternative Calculations and Deutsche Payment on Early Termination and on Certain Extraordinary Events. If Deutsche owes Counterparty any amount in connection with the Transaction pursuant to Sections 12.2,
12.3 (and “Consequences of Merger Events” above), 12.6, 12.7 or 12.9 of the Equity Definitions (except in the case of an Extraordinary Event in which the consideration or proceeds to be paid to holders of Shares as a result of such event
consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the case of an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, other than
(x) an Event of Default of the type described in Section 5(a)(iii), (v), (vi) or (vii) of the Agreement or (y) a Termination Event of the type described in Section 5(b)(i), (ii), (iii), (iv), (v) or (vi) of
the Agreement that in the case of either (x) or (y) resulted from an event or events outside Counterparty’s control) (a “Deutsche Payment Obligation”), Counterparty shall have the right, in its sole discretion, to
require Deutsche to satisfy any such Deutsche Payment Obligation by delivery of Termination Delivery Units (as defined below) by giving irrevocable telephonic notice to Deutsche, confirmed in writing within one Scheduled Trading Day, between the
hours of 9:00 a.m. and 4:00 p.m. New York time on the Early Termination Date or other date the transaction is terminated, as applicable (“Notice of Deutsche Termination Delivery”). Within a commercially reasonable period of time
following receipt of a Notice of Deutsche Termination Delivery, Deutsche shall deliver to Counterparty a number of Termination Delivery Units having a cash value equal to the amount of such Deutsche Payment Obligation (such number of Termination
Delivery Units to be delivered to be determined by the Calculation Agent as the number of whole Termination Delivery Units that could be purchased over a commercially reasonable period of time with the cash equivalent of such payment obligation). If
the provisions set forth in this paragraph are applicable, the provisions of Sections 9.8, 9.9, 9.11 (modified as described above) and 9.12 of the Equity Definitions shall be applicable, except that all references to “Shares” shall be
read as references to “Termination Delivery Units.” 
 “Termination Delivery Unit” means (a) in the case of a
Termination Event, an Event of Default or an Extraordinary Event (other than an Insolvency, Nationalization or Merger Event), one Share or (b) in the case of an Insolvency, Nationalization or Merger Event, a unit consisting of the number or
amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization or Merger Event. If a
Termination Delivery Unit consists of property other than cash or New Shares and Counterparty provides irrevocable written notice to the Calculation Agent on or prior to the Closing Date that it elects to receive cash, New Shares or a combination
thereof (in such proportion as Counterparty designates) in lieu of such other property, the Calculation Agent shall replace such property with cash, New Shares or a combination thereof as components of a Termination Delivery Unit in such amounts, as
determined by the Calculation Agent in its discretion by commercially reasonable means, as shall have a value equal to the value of the property so replaced. If such Insolvency, Nationalization or Merger Event involves a choice of consideration to
be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash. 
 Rule 10b-18.
Except as disclosed to Deutsche in writing prior to the date on which the offering of the Convertible Notes was first announced (including, for the avoidance of doubt, a confirmation entered into between Counterparty and Deutsche relating to an
accelerated share repurchase transaction entered into in connection with the Convertible Notes offering), Counterparty represents and warrants to Deutsche that it has not made any purchases of blocks by or for itself or any of its Affiliated
Purchasers pursuant to the one block purchase per week exception in Rule 10b-18(b)(4) under the Exchange Act during each of the four calendar weeks preceding such date (“Rule 10b-18 purchase,” “blocks” and
“Affiliated Purchaser” each as defined in 

  

 13 

 
Rule 10b-18 under the Exchange Act). Counterparty agrees and acknowledges that it shall not, and shall cause its affiliates and Affiliated Purchasers not to,
directly or indirectly (including by means of a derivative instrument) enter into any transaction (other than such accelerated share repurchase transaction) to purchase any Shares during the period beginning on such date and ending on the day on
which Deutsche has informed Counterparty in writing that it has completed all purchases of Shares or other transactions to hedge initially its exposure to the Transaction. Deutsche shall inform Counterparty of such as soon as practicable after it
has completed all purchases of Shares or other transactions to hedge initially its exposure to the Transaction. 
 Regulation M.
Counterparty was not on the date on which the offering of the Convertible Notes was first announced, has not since such date, and is not on the date hereof, engaged in a distribution, as such term is used in Regulation M under the Exchange Act, of
any securities of Counterparty, other than a distribution meeting the requirements of the exception set forth in Sections 101(b)(10) and 102(b)(7) of Regulation M under the Exchange Act. Counterparty shall not, until the day on which Deutsche has
informed Counterparty in writing that it has completed all purchases of Shares or other transactions to hedge initially its exposure to the Transaction, engage in any such distribution. 
 No Material Non-Public Information. On each day during the period beginning on the date on which the offering of the Convertible Notes was first
announced and ending on the day on which Deutsche has informed Counterparty in writing that Deutsche has completed all purchases of Shares or other transactions to hedge initially its exposure with respect to the Transaction, Counterparty represents
and warrants to Deutsche that it is not aware of any material nonpublic information concerning itself or the Shares. 
 Right to Extend.
Deutsche may postpone any potential Exercise Date or postpone or extend any other date of valuation or delivery with respect to some or all of the relevant Note Hedging Units (in which event the Calculation Agent shall make appropriate
adjustments to the Settlement Amount for such Note Hedging Units), if Deutsche determines, in its reasonable discretion, that such extension is reasonably necessary or appropriate to preserve Deutsche’s hedging or hedge unwind activity
hereunder to enable Deutsche to effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would, if Deutsche were Issuer or an affiliated purchaser of Issuer, be in compliance with
applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Deutsche. 
 Transfer
or Assignment. Counterparty may not transfer any of its rights or obligations under the Transaction without the prior written consent of Deutsche, such consent not to be unreasonably withheld or delayed. Deutsche may transfer or assign all or a
portion of its Note Hedging Units hereunder to any of its affiliates without the consent of Counterparty, provided that Counterparty shall have recourse to Deutsche in the event of the failure by the affiliate transferee to perform any of
such obligations hereunder. If, as determined in Deutsche’s sole discretion, (x) its “beneficial ownership” (within the meaning of Section 16 of the Exchange Act and rules promulgated thereunder) exceeds 8.5% of
Counterparty’s outstanding Shares and (y) Deutsche is unable, after commercially reasonable efforts, to effect a transfer or assignment on pricing terms and within a time period reasonably acceptable to it of all or a portion of the
Transaction pursuant to the preceding paragraph to reduce such “beneficial ownership” below 8.5%, Deutsche may, without Counterparty’s prior consent, transfer any of the rights or obligations of Deutsche to a third party with a rating
(or whose guarantor has a rating) for its long term, unsecured and unsubordinated indebtedness of A+ or better by Standard & Poor’s Ratings Services or its successor (“S&P”), or A1 or better by Moody’s
Investors Service, Inc. or its successor (“Moody’s”). If such transfer has not been effected on pricing terms reasonably acceptable to Deutsche and within time period reasonably acceptable to Deutsche, Deutsche may designate
any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of this Transaction, such that its “beneficial ownership” following such partial termination will be approximately
equal to but less than 8.5%. In the event that Deutsche so designates an Early Termination Date with respect to a portion of this Transaction, a payment shall be made pursuant to Section 6 of the Agreement as if (i) an Early Termination
Date had been designated in respect of a Transaction having terms identical to this Transaction and a Number of Note Hedging Units equal to the Terminated Portion, (ii) Counterparty shall be the sole Affected Party with respect to such partial
termination and (iii) such Transaction shall be the only Terminated Transaction (and, for the avoidance of doubt, the provisions set forth under the caption “Alternative Calculations and Deutsche Payment on Early Termination and on
Certain Extraordinary Events” shall apply to any amount that is payable by Deutsche to Counterparty pursuant to this sentence). 
  

 14 

 Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Deutsche
to purchase, sell, receive or deliver any shares or other securities to or from Counterparty, Deutsche may designate any of its affiliates to purchase, sell, receive or deliver such shares or other securities and otherwise to perform Deutsche’s
obligations in respect of the Transaction and any such designee may assume such obligations. Deutsche shall be discharged of its obligations to Counterparty to the extent of any such performance. 
 Severability; Illegality. If compliance by either party with any provision of the Transaction would be unenforceable or illegal, (a) the
parties shall negotiate in good faith to resolve such unenforceability or illegality in a manner that preserves the economic benefits of the transactions contemplated hereby and (b) the other provisions of the Transaction shall not be
invalidated, but shall remain in full force and effect. 
 Waiver of Jury Trial. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE TRANSACTION. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN. 
 Early Unwind. In the event the sale of
Convertible Notes is not consummated with the initial purchasers thereof for any reason by the close of business in New York on April 15, 2008 (or such later date as agreed upon by the parties) (April 15, 2008 or such later date as agreed upon
being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (a) the Transaction and all of the respective rights and obligations of Deutsche
and Counterparty under the Transaction shall be cancelled and terminated and (b) each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or
liabilities of the other party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date. Deutsche and Counterparty represent and acknowledge to the other that upon an Early Unwind, all
obligations with respect to the Transaction shall be deemed fully and finally discharged. 
 Governing law: The law of the State of New York.

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

 (a) Counterparty 
 Endo Pharmaceuticals Holdings Inc.

 100 Endo Boulevard 
 Chadds Ford, PA 19317 
 Attention: Chief Legal Officer 
 Telephone: 610-558-9800 
 Fax: 610-558-9684 
 (b) Deutsche 
 Deutsche Bank AG, London Branch 
 c/o Deutsche Bank Securities Inc.

 60 Wall Street 
 New York, NY 10005 
  

 15 

 Attention: Documentation Department 
 and 
 c/o Deutsche Bank Securities Inc. 
 60 Wall
Street, NYC60-0425 
 New York, New York 10005-2858 
 Attn: Equity
Capital Markets 
 Fax No.: 212-797-0058 
 Tel No.: 212-250-2717

  

 16 

 This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. 
 Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below and returning to Deutsche a facsimile of the fully-executed Confirmation to Deutsche at 44 113 336 2009. Originals shall be provided for your execution upon your request.

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

 Very truly yours, 
  

			
	DEUTSCHE BANK AG, LONDON BRANCH
		
	By:	 	 /s/ Paul Maley

	Name:	 	Paul Maley
	Title:	 	Director
		
	By:	 	 /s/ Lee Frankenfield

	Name:	 	Lee Frankenfield
	Title:	 	Managing Director
	
	 DEUTSCHE BANK SECURITIES INC.
 acting solely as Agent in connection with this Transaction

		
	By:	 	 /s/ Paul Maley

	Name:	 	Paul Maley
	Title:	 	Director
		
	By:	 	 /s/ Lee Frankenfield

	Name:	 	Lee Frankenfield
	Title:	 	Managing Director

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

 

			
	ENDO PHARMACEUTICALS HOLDINGS INC.
		
	By:	 	 /s/ Charles A. Rowland, Jr.

	Name:	 	Charles A. Rowland, Jr.
	Title:	 	 Executive Vice President,
 Chief Financial
Officer
 and TreasurerIssuer Warrant Transaction Confirmation

 Exhibit 10.8 
 EXECUTION COPY 
  

															
		 		 		 		 		 		 	Deutsche Bank	 	

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

  

			
	 DATE:
	  	April 9, 2008
		
	TO:	  	Endo Pharmaceuticals Holdings Inc.
	ATTENTION:	  	Chief Legal Officer
	TELEPHONE:	  	610-558-9800
	FACSIMILE:	  	610-558-9684
		
	FROM:	  	Deutsche Bank AG, London Branch
	TELEPHONE:	  	44 20 7545 0556
	FACSIMILE:	  	44 11 3336 2009
	SUBJECT:	  	Equity Derivatives Confirmation
		
	REFERENCE NUMBER(S):	  	252000

 The purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and
conditions of the transaction entered into between Deutsche Bank AG, London Branch (“Deutsche”) and Endo Pharmaceuticals Holdings Inc. (“Counterparty”) on the Trade Date specified below (the
“Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. This Confirmation constitutes the entire agreement and understanding of the parties with respect
to the subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and oral communications with respect thereto. 
 DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. DEUTSCHE BANK SECURITIES INC. (“AGENT”) HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION AND HAS
NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION. DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

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

			
	 Chairman of the Supervisory Board: Clemens Börsig
 Board of Managing Directors: Hermann-Josef Lamberti, Josef Ackermann, Anthony Dilorio, Hugo Banziger
	 	Deutsche Bank AG is regulated by the FSA for the conduct of designated investment business in the UK, is a member of the London Stock Exchange and is a limited liability company incorporated
in the Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am Main; Branch Registration No. in England and Wales BR000005, Registered address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.

 This Confirmation evidences a complete and binding agreement between Deutsche and Counterparty as to the terms of the
Transaction to which this Confirmation relates. This Confirmation shall supplement, form a part of, and be subject to an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement as if Deutsche and Counterparty had
executed an agreement in such form (without any Schedule but with the “Cross-Default” provisions of Section 5(a)(vi) applicable to Counterparty (with the phrase “, or becoming capable at such time of being declared,” deleted
from Section 5(a)(vi)(1) and the reference to “principal amount” therein deemed to include “original principal amount” and with a “Threshold Amount” of $300,000,000) and with such other elections set forth in this
Confirmation). For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement. 
  

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

  

			
	General:	  	
		
	Trade Date:	  	April 9, 2008.
		
	Effective Date:	  	April 15, 2008.
		
	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:	  	Counterparty.
		
	Buyer:	  	Deutsche.
		
	Shares:	  	The common stock, par value USD 0.01 per share, of Counterparty (Ticker Symbol: “ENDP”).
		
	Number of Warrants:	  	For each Component, as provided in Annex C to this Confirmation.
		
	Strike Price:	  	As provided in Annex B to this Confirmation.
		
	Premium:	  	As provided in Annex B to this Confirmation.
		
	Premium Payment Date:	  	The Effective Date.
		
	Exchange:	  	The NASDAQ Global Select Market.
		
	Related Exchanges:	  	All Exchanges.
		
	Calculation Agent:	  	Deutsche.

  

 2 

			
		
	Procedure for Exercise:	  	
		
	 In respect of any Component:
	  	
		
	Expiration Date:	  	As provided in Annex C 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 the preceding proviso as of the Final Disruption Date, the Final Disruption Date shall be the
Expiration Date (irrespective of whether such date is an Expiration Date in respect of any other Component for the Transaction) and, notwithstanding anything to the contrary in this Confirmation or the Equity Definitions, the Relevant Price for the
Expiration Date shall be the prevailing market value per Share determined by the Calculation Agent in a commercially reasonable manner. 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. “Final Disruption Date” has the meaning provided in Annex B to this Confirmation.
		
	Automatic Exercise:	  	Applicable. Each Warrant not previously exercised will be deemed to be automatically exercised on the Expiration Time on the relevant 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, and by amending and restating clause (a)(iii) thereof in its entirety to read as follows: “(iii) an Early Closure that the Calculation Agent
determines is material.”
		
		  	Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line
thereof.

  

 3 

			
		
	Settlement Terms:	  	
		
	 In respect of any Component:
	  	
		
	Net Share Settlement:	  	On each Settlement Date, Counterparty shall deliver to Deutsche a number of Shares equal to the Net Share Amount for such Settlement Date to the account specified by Deutsche, and cash in lieu
of any fractional shares valued at the Relevant Price for the Valuation Date corresponding to such Settlement Date. If, in the good faith reasonable judgment of Deutsche, the Shares deliverable hereunder would not be immediately freely transferable
by Deutsche under Rule 144 under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or any successor provision, then Deutsche may elect to either (x) accept delivery of such Shares notwithstanding the fact that such
Shares are not immediately freely transferable by Deutsche under Rule 144 or any successor provision or (y) require that such delivery take place pursuant to the provisions set forth opposite the caption “Registration/Private Placement
Procedures” below.
		
	Net Share Amount:	  	For any Exercise Date, a number of Shares, as calculated by the Calculation Agent, equal to the product of (i) the number of Warrants being exercised or deemed exercised on such Exercise Date,
and (ii) the excess, if any, of the Relevant Price for the Valuation Date occurring on such Exercise Date over the Strike Price (such product, the “Net Share Settlement Amount”), divided by such Relevant
Price.
		
	Relevant Price:	  	On any Valuation Date, the volume weighted average price per Share for the regular trading session of the Exchange as displayed under the heading “Bloomberg VWAP” on Bloomberg Page
ENDP.Q <equity> AQR on such Valuation Date in respect of the period from 9:30 am to 4:00 p.m. (New York City time) on such Valuation Date (or if such volume weighted average price is not available, the Calculation Agent’s reasonable, good
faith estimate of such price on such Valuation Date).
		
	Settlement Currency:	  	USD.
		
	Other Applicable Provisions:	  	The provisions of Sections 9.1(c), 9.8, 9.9, 9.11 (except that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any
representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws as a result of the fact that Counterparty is the Issuer of the Shares) and 9.12 of the Equity Definitions will be applicable,
except that all references in such provisions to “Physical Settlement” and “Physically-settled” shall be read as references to “Net Share Settlement” and “Net Share Settled”. “Net Share Settled” in
relation to any Warrant means that Net Share Settlement is applicable to such Warrant.

  

 4 

			
		
	Dividends:	  	
		
	 In respect of any Component:
	  	
		
	Dividend Adjustments:	  	Counterparty agrees to notify Deutsche promptly of the announcement of an ex-dividend date for any cash dividend by Counterparty. If an ex-dividend date for any cash dividend occurs at any time
from, but excluding, the Trade Date to, and including, the Expiration Date, then in lieu of any adjustments as provided under “Method of Adjustment” below, the Calculation Agent shall make such adjustments to the Strike Price and/or the
Number of Warrants as it deems appropriate to preserve for the parties the intended economic benefits of the Transaction.
		
	Adjustments:	  	
		
	 In respect of any Component:
	  	
		
	Method of Adjustment:	  	Calculation Agent Adjustment; provided, however, that the Equity Definitions shall be amended by replacing the words “diluting or concentrative” in Sections 11.2(a),
11.2(c) (in two instances) and 11.2(e)(vii) with the word “material” and by adding the words “or the Transaction” after the words “theoretical value of the relevant Shares” in Sections 11.2(a), 11.2(c) and 11.2(e)(vii);
provided further that adjustments may be made to account for changes in volatility, expected dividends, expected correlation, stock loan rate and liquidity relative to the relevant Share.
		
	Modified Calculation Agent Adjustment:	  	For greater certainty, the definition of “Modified Calculation Adjustment” in Sections 12.2 and 12.3 of the Equity Definitions shall be amended by adding the following italicized
language to the stipulated parenthetical provision: “(including adjustments to account for changes in volatility, expected dividends, expected correlation, stock loan rate or liquidity relevant to the Shares or to the Transaction)
from the Announcement Date to the Merger Date (Section 12.2) or Tender Offer Date (Section 12.3)”.
		
	Consequences of Merger Events:	  	
		
	New Shares:	  	In the definition of New Shares in Section 12.1(i) of the Equity Definitions, the text in clause (i) thereof shall be deleted in its entirety and replaced with “publicly quoted, traded or
listed on any U.S. national securities exchange”.
		
	(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.

  

 5 

			
		
	Consequences of Tender Offers:	  	
		
	(a) Share-for-Share:	  	Modified Calculation Agent Adjustment.
		
	(b) Share-for-Other:	  	Modified Calculation Agent Adjustment.
		
	(c) Share-for-Combined:	  	Modified Calculation Agent Adjustment.
		
	Nationalization, Insolvency and Delisting:	  	Cancellation and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a
Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any U.S. national securities exchange; if the Shares are immediately re-listed, re-traded or re-quoted on any such
exchange, such exchange shall be deemed to be the Exchange. For the avoidance of doubt, the occurrence of any event that is a Merger Event and would otherwise have been a Delisting will have the consequence specified for the relevant Merger Event.

		
	Additional Disruption Events:	  	
		
	Change in Law:	  	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended (i) by replacing the phrase “the interpretation” in the third line thereof with the
phrase “or public announcement of the formal or informal interpretation” and (ii) immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party on the
Trade Date”.
		
	Failure to Deliver:	  	Inapplicable
		
	Insolvency Filing:	  	Applicable
		
	Loss of Stock Borrow:	  	Applicable
		
	 Maximum Stock Loan Rate:
	  	250 basis points per annum
		
	Increased Cost of Stock Borrow:	  	Applicable
		
	 Initial Stock Loan Rate:
	  	0 basis points per annum
		
	Increased Cost of Hedging:	  	Applicable
		
	Hedging Disruption:	  	Applicable
		
	Hedging Party:	  	Deutsche for all applicable Additional Disruption Events
		
	Determining Party:	  	Deutsche for all applicable Additional Disruption Events

  

 6 

			
		
	Acknowledgements:	  	
		
	Non-Reliance:	  	Applicable
		
	Agreements and Acknowledgements Regarding Hedging Activities:	  	Applicable
		
	Additional Acknowledgements:	  	Applicable

 Mutual Representations: Each of Deutsche and Counterparty represents and warrants to, and agrees with, the
other party that: 
  

	 	(i)	Tax Disclosure. Notwithstanding anything to the contrary herein, in the Equity Definitions or in the Agreement, and notwithstanding any express or implied claims of
exclusivity or proprietary rights, the parties (and each of their employees, representatives or other agents) are authorized to disclose to any and all persons, beginning immediately upon commencement of their discussions and without limitation of
any kind, the tax treatment and tax structure of the Transaction, and all materials of any kind (including opinions or other tax analyses) that are provided by either party to the other relating to such tax treatment and tax structure.

  

	 	(ii)	Commodity Exchange Act. It is an “eligible contract participant” within the meaning of Section 1a(12) of the U.S. Commodity Exchange Act, as amended (the
“CEA”). The Transaction has been subject to individual negotiation by the parties. The Transaction has not been executed or traded on a “trading facility” as defined in Section 1a(33) of the CEA. It has entered into
the Transaction with the expectation and intent that the Transaction shall be performed to its termination date. 

  

	 	(iii)	Securities Act. It is a “qualified institutional buyer” as defined in Rule 144A under the Securities Act, or an “accredited investor” as defined under the
Securities Act. 

  

	 	(iv)	ERISA. The assets used in the Transaction (1) are not assets of any “plan” (as such term is defined in Section 4975 of the U.S. Internal Revenue Code (the
“Code”)) subject to Section 4975 of the Code or any “employee benefit plan” (as such term is defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)) subject to Title I of ERISA, and (2) do not constitute “plan assets” within the meaning of Department of Labor Regulation 2510.3-101, 29 CFR Section 2510-3-101. 

 Counterparty Representations: In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty represents,
warrants, acknowledges and covenants that: 
  

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

  

	 	(ii)	 (A) Counterparty is acting for its own account, and it has made its own independent decisions to enter into the Transaction and as to whether the Transaction is
appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary, (B) Counterparty is not relying on any communication (written or oral) of Deutsche or any of its affiliates as investment
advice or as a recommendation to enter into the Transaction (it being understood that information and explanations related to the terms and conditions of the Transaction shall not be considered investment 

  

 7 

	 	 
advice or a recommendation to enter into the Transaction) and (C) no communication (written or oral) received from Deutsche or any of its affiliates
shall be deemed to be an assurance or guarantee as to the expected results of the Transaction. 

  

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

  

	 	(iv)	Counterparty acknowledges its responsibilities under applicable law (including, without limitation, the Securities Act and Section 9 and Section 10(b) of the Exchange Act)
in connection with the Transaction. 

  

	 	(v)	The representations and warranties of Counterparty set forth in Section 1 of the Purchase Agreement dated April 9, 2008 between Counterparty and Deutsche Bank Securities
Inc. as representative of the initial purchasers are true and correct and are hereby deemed to be repeated to Deutsche as if set forth herein. 

  

	 	(vi)	The Shares issuable upon exercise of all Warrants (the “Warrant Shares”) have been duly authorized and, when delivered pursuant to the terms of such Transaction,
shall be validly issued, fully-paid and non-assessable, and such issuance of the Warrant Shares shall not be subject to any preemptive or similar rights. 

  

	 	(vii)	Counterparty is not as of the Trade Date and as of the date on which Counterparty delivers any Termination Delivery Units, and shall not be after giving effect to the transactions
contemplated hereby, “insolvent” (as such term is defined in Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)). 

  

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

  

	 	(ix)	Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Deutsche is not making any representations or warranties with respect
to the treatment of the Transaction under FASB Statements 128, 133, 149 or 150 (or under any successor statement), EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements), under FASB’s Liabilities & Equity Project,
or under any other accounting guidance. 

  

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

  

	 	(xi)	Counterparty shall deliver to Deutsche an opinion of counsel, dated as of the Trade Date and reasonably acceptable to Deutsche in form and substance, with respect to the matters set
forth in Section 3(a) of the Agreement. 

 Miscellaneous: 
 Effectiveness. If, prior to the Effective Date, Deutsche reasonably determines that it is advisable to cancel the Transaction because of concerns
that Deutsche’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. 
  

 8 

 Netting and Set-Off. Notwithstanding anything to the contrary, the parties hereto agree that the
Transaction shall not be subject to any right of netting or set off with any other transaction, whether under any agreement or by operation of law. 
 Qualified Financial Contracts. It is the intention of the parties that, in respect of Counterparty, (a) the Transaction shall constitute a “qualified financial contract” within the meaning of 12 U.S.C.
Section 1821(e)(8)(D)(i) and (b) a Non-defaulting Party’s rights under Sections 5 and 6 of the Agreement constitute rights of the kind referred to in 12 U.S.C. Section 1821(e)(8)(A). 
 Method of Delivery. Whenever delivery of funds or other assets is required hereunder by or to Counterparty, such delivery shall be effected through
Agent. In addition, all notices, demands and communications of any kind relating to the Transaction between Deutsche and Counterparty shall be transmitted exclusively through Agent. 
 Status of Claims in Bankruptcy. Deutsche acknowledges and agrees that this Confirmation is not intended to convey to Deutsche rights with respect
to the Transaction that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Deutsche’s right to pursue remedies in the
event of a breach by Counterparty of its obligations and agreements with respect to the Transaction; provided, further, that nothing herein shall limit or shall be deemed to limit Deutsche’s rights in respect of any transactions
other than the Transaction. 
 No Collateral. Notwithstanding any provision of this Confirmation, the Agreement, Equity Definitions, or
any other agreement between the parties to the contrary, the obligations of Counterparty under the Transaction are not secured by any collateral. 
 Securities Contract; Swap Agreement. The parties hereto agree and acknowledge that Deutsche is a “financial institution,” “swap participant” and “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy
Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the
Bankruptcy Code and a “settlement payment” or a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the
Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” a “payment amount” or “other transfer obligation” within the meaning of Section 362 of
the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Deutsche is entitled to the protections afforded by, among other sections, Section 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code. 
 Alternative Calculations and
Counterparty Payment on Early Termination and on Certain Extraordinary Events. If Counterparty owes Deutsche any amount in connection with the Transaction pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in
the case of an Extraordinary Event in which the consideration or proceeds to be paid to holders of Shares as a result of such event consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the case of an Event of
Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, other than (x) an Event of Default of the type described in Section 5(a)(iii), (v), (vi) or (vii) of the
Agreement or (y) a Termination Event of the type described in Section 5(b)(i), (ii), (iii), (iv), (v) or (vi) of the Agreement that in the case of either (x) or (y) resulted from an event or events outside
Counterparty’s control) (a “Counterparty Payment Obligation”), Counterparty shall have the right, in its sole discretion, to satisfy any such Counterparty Payment Obligation by delivery of Termination Delivery Units (as defined
below) by giving irrevocable telephonic notice to Deutsche, confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 a.m. and 4:00 p.m. New York time on the Early Termination Date or other date the transaction is terminated,
as applicable (“Notice of Counterparty Termination Delivery”). Within a commercially reasonable period of time following receipt of a Notice of Counterparty Termination Delivery, Counterparty shall deliver to Deutsche a number of
Termination Delivery Units having a cash value equal to the amount of such Counterparty Payment Obligation (such number 

  

 9 

 
of Termination Delivery Units to be delivered to be determined by the Calculation Agent as the number of whole Termination Delivery Units that could be sold
over a commercially reasonable period of time to generate proceeds equal to the cash equivalent of such payment obligation). In addition, if, in the good faith reasonable judgment of Deutsche, for any reason, the Termination Delivery Units
deliverable pursuant to this paragraph would not be immediately freely transferable by Deutsche under Rule 144 under the Securities Act or any successor provision, then Deutsche may elect either to (x) accept delivery of such Termination
Delivery Units notwithstanding any restriction on transfer or (y) require that such delivery take place pursuant to the provisions set forth opposite the caption “Registration/Private Placement Procedures” below. If the
provisions set forth in this paragraph are applicable, the provisions of Sections 9.8, 9.9, 9.11 (modified as described above) and 9.12 of the Equity Definitions shall be applicable, except that all references to “Shares” shall be
read as references to “Termination Delivery Units.” 
 “Termination Delivery Unit” means (a) in the case of a
Termination Event, an Event of Default or an Extraordinary Event (other than an Insolvency, Nationalization, Merger Event or Tender Offer), one Share or (b) in the case of an Insolvency, Nationalization, Merger Event or Tender Offer, 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 a Termination Delivery Unit consists of property other than cash or New Shares and Counterparty provides irrevocable written notice to the Calculation Agent on or prior to the Closing Date that it
elects to deliver cash, New Shares or a combination thereof (in such proportion as Counterparty designates) in lieu of such other property, the Calculation Agent shall replace such property with cash, New Shares or a combination thereof as
components of a Termination Delivery Unit in such amounts, as determined by the Calculation Agent in its discretion by commercially reasonable means, as shall have a value equal to the value of the property so replaced. If such Insolvency,
Nationalization, 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. 
 Registration/Private Placement Procedures. If, in the reasonable opinion of Deutsche, following any delivery of Shares or Termination Delivery
Units to Deutsche hereunder, such Shares or Termination Delivery Units would be in the hands of Deutsche subject to any applicable restrictions with respect to any registration or qualification requirement or prospectus delivery requirement for such
Shares or Termination Delivery Units pursuant to any applicable federal or state securities law (including, without limitation, any such requirement arising under Section 5 of the Securities Act as a result of such Shares or Termination
Delivery Units being “restricted securities”, as such term is defined in Rule 144 under the Securities Act) (such Shares or Termination Delivery Units, “Restricted Shares”), then delivery of such Restricted Shares shall be
effected pursuant to either clause (i) or (ii) of Annex A hereto at the election of Counterparty, unless waived by Deutsche. Notwithstanding the foregoing, solely in respect of any Warrants exercised or deemed exercised on any Exercise
Date, Counterparty shall elect, prior to the first Settlement Date for the first Exercise Date, a Private Placement Settlement (as defined in Annex A hereto) or Registration Settlement (as defined in Annex A hereto) for all deliveries of Restricted
Shares for all such Exercise Dates which election shall be applicable to all Settlement Dates for such Warrants and the procedures in clause (i) or clause (ii) of Annex A hereto shall apply for all such delivered Restricted Shares on an
aggregate basis commencing after the final Settlement Date for such Warrants. The Calculation Agent shall make reasonable adjustments to settlement terms and provisions under this Confirmation to reflect a single Private Placement Settlement or
Registration Settlement for such aggregate Restricted Shares delivered hereunder. If the Private Placement Settlement or the Registration Settlement shall not be effected as set forth in clauses (i) or (ii) of Annex A, as applicable, then
failure to effect such Private Placement Settlement or such Registration Settlement shall constitute an Event of Default with respect to which Counterparty shall be the Defaulting Party. 
 Share Deliveries. Counterparty acknowledges and agrees that, to the extent that Deutsche is not then an affiliate, as such term is used in Rule 144
under the Securities Act, of Counterparty and has not been such an affiliate of Counterparty for 90 days (it being understood that Deutsche shall not be considered such an affiliate of Counterparty solely by reason of its right to receive Shares
pursuant to a Transaction hereunder), any Shares or Termination Delivery Units delivered hereunder at any time after one year from the Premium Payment Date shall be eligible for resale under Rule 144 under the Securities Act or any successor
provision, and Counterparty agrees 

  

 10 

 
to promptly remove, or cause the transfer agent for such Shares or Termination Delivery Units to remove, any legends referring to any restrictions on resale
under the Securities Act from the certificates representing such Shares or Termination Delivery Units. Counterparty further agrees that with respect to any Shares or Termination Delivery Units delivered hereunder at any time after 6 months from the
Premium Payment Date but prior to 1 year from the Premium Payment Date, to the extent that Counterparty then satisfies the current information requirement of Rule 144 under the Securities Act, Counterparty shall promptly remove, or cause the
transfer agent for such Shares or Termination Delivery Units to remove, any legends referring to any such restrictions or requirements from the certificates representing such Share or Termination Delivery Units upon delivery by Deutsche to
Counterparty or such transfer agent of any customary seller’s and broker’s representation letters in connection with resales of such Shares or Termination Delivery Units 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 Deutsche. Counterparty further agrees and
acknowledges that Deutsche shall run a holding period under Rule 144 under the Securities Act with respect to the Warrants and/or any Shares or Termination Delivery Units delivered hereunder notwithstanding the existence of any other transaction or
transactions between Counterparty and Deutsche relating to the Shares. Counterparty further agrees that Shares or Termination Delivery Units delivered hereunder prior to the date that is 6 months from the Premium Payment Date may be freely
transferred by Deutsche to its affiliates, and Counterparty shall effect such transfer without any further action by Deutsche. Notwithstanding anything to the contrary herein, Counterparty agrees that any delivery of Shares or Termination Delivery
Units shall be effected by book-entry transfer through the facilities of the Clearance System if, at the time of such delivery, the certificates representing such Shares or Termination Delivery Units would not contain any restrictive legend as
described above. Notwithstanding anything to the contrary herein, to the extent the provisions of Rule 144 under the Securities Act or any successor rule are amended, or the applicable interpretation thereof by the Securities and Exchange Commission
or any court changes after the Trade Date, the agreements of Counterparty herein shall be deemed modified to the extent necessary, in the opinion of outside counsel of Counterparty, to comply with Rule 144 under the Securities Act, including Rule
144(b) or any successor provision, as in effect at the time of delivery of the relevant Shares or Termination Delivery Units. 
 No
Material Non-Public Information. On each day during the period beginning on the Trade Date and ending on the day on which Deutsche has informed Counterparty in writing that Deutsche has completed all purchases or sales of Shares or other
transactions to hedge initially its exposure with respect to the Transaction, Counterparty represents and warrants to Deutsche that it is not aware of any material nonpublic information concerning itself or the Shares. Deutsche shall inform
Counterparty of such as soon as practicable after it has completed all purchases of Shares or other transactions to hedge initially its exposure to the Transaction. 
 Limit on Beneficial Ownership. Notwithstanding any other provisions hereof, Deutsche may not exercise any Warrant hereunder, Automatic Exercise shall not apply with respect thereto, and no delivery hereunder
(including pursuant to provisions opposite the headings “Alternative Calculations and Counterparty Payments on Early Termination and on Certain Extraordinary Events,” “Registration/Private Placement Procedures,”
“Limitation on Delivery of Shares” or Annex A) shall be made, to the extent (but only to the extent) that the receipt of any Shares upon such exercise or delivery would result in Deutsche directly or indirectly beneficially owning
(as such term is defined for purposes of Section 13(d) of the Exchange Act) at any time in excess of 9.0% of the outstanding Shares. Any purported delivery hereunder shall be void and have no effect to the extent (but only to the extent) that
such delivery would result in Deutsche directly or indirectly so beneficially owning in excess of 9.0% of the outstanding Shares. If any delivery owed to Deutsche or exercise hereunder is not made, in whole or in part, as a result of this provision,
Counterparty’s obligation to make such delivery and Deutsche’s right to exercise a Warrant shall not be extinguished and Counterparty shall make such delivery as promptly as practicable after, but in no event later than one Clearance
System Business Day after, Deutsche gives notice to Counterparty that such exercise or delivery would not result in Deutsche directly or indirectly so beneficially owning in excess of 9.0% of the outstanding Shares. 
 Repurchase Notices. On any day Counterparty effects any repurchases of Shares, Counterparty shall promptly provide Deutsche with a written notice
of such repurchase (a “Repurchase Notice”) if the Warrant Equity Percentage (as defined below) differs by 0.5% or more from the Warrant Equity Percentage set forth in the immediately preceding Repurchase Notice (or, in the case of
the first such Repurchase Notice, greater than the 

  

 11 

 
Warrant Equity Percentage as of the date hereof). The Warrant Equity Percentage as of any day is the fraction of (1) the numerator of which is the
Number of Warrants, and (2) the denominator of which is the number of Shares outstanding on such day. Counterparty agrees to indemnify and hold harmless Deutsche and its affiliates and their respective officers, directors, employees,
affiliates, advisors, agents and controlling person (each, an “Indemnified Person”) from and against any and all losses (including losses relating to Deutsche’s hedging activities as a consequence of becoming, or of the risk of
becoming, an “insider” as defined under Section 16 of the Exchange Act, including without limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to
this Transaction), claims, damages, judgments, liabilities and expense (including reasonable attorney’s fees), joint or several, which an Indemnified Person actually may become subject to, as a result of Counterparty’s failure to provide
Deutsche with a Repurchase Notice on the day and in the manner specified herein, and to reimburse, upon written request, each of such Indemnified Persons for any reasonable legal or other expenses incurred in connection with investigating, preparing
for, providing testimony or other evidence in connection with or defending any of the foregoing. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the
Indemnified Person, such Indemnified Person shall promptly notify Counterparty in writing, and Counterparty, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others Counterparty may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding. Counterparty shall be relieved from liability to the extent that the Indemnified Person fails
promptly to notify Counterparty of any action commenced against it in respect of which indemnity may be sought hereunder; provided, that failure to notify Counterparty (x) shall not relieve Counterparty from any liability hereunder to
the extent it is not materially prejudiced as a result thereof and (y) shall not, in any event, relieve Counterparty from any liability that it may have otherwise than on account of this indemnity agreement. Counterparty shall not be liable for
any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Counterparty agrees to indemnify any Indemnified Person from and against any loss or liability
by reason of such settlement or judgment. Counterparty shall not, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have
been a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding
on terms reasonably satisfactory to such Indemnified Person. If the indemnification provided for in this paragraph is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein,
then Counterparty, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities. The remedies provided for in this
paragraph are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity. The indemnity and contribution agreements contained in this paragraph shall remain operative and in
full force and effect regardless of the termination of the Transaction. 
 Limitation On Delivery of Shares. Notwithstanding anything
herein or in the Agreement to the contrary, in no event shall Counterparty be required to deliver Shares in connection with the Transaction in excess of the number of Shares (the “Maximum Delivery Amount”) equal, on any day, to the
sum of (a) 12,000,000 and (b) the number of Shares that Counterparty has repurchased as of such day pursuant to a confirmation entered into between Counterparty and Deutsche on the Trade Date hereof relating to a collared accelerated share
repurchase transaction (the “ASR Confirmation”) (or more than the adjusted number thereof with regard to other securities constituting the Termination Delivery Units), subject to a Calculation Agent Adjustment for any Potential
Adjustment Event or Extraordinary Event, provided that Deutsche shall be entitled to allocate any remaining number of Shares in the “maximum delivery amount” under the ASR Confirmation to increase the Maximum Delivery Amount
hereunder to a number not to exceed twice the aggregate Number of Warrants hereunder (with a corresponding reduction of the “maximum delivery amount” under the ASR Confirmation) and vice versa. Counterparty represents and warrants (which
shall be deemed to be repeated on each day that the Transaction is outstanding) that the Maximum Delivery Amount is equal to or less than the number of authorized but unissued Shares of Counterparty that are not reserved for future issuance in
connection with transactions in the Shares (other than the Transaction) on the date of the determination of the Maximum Delivery Amount (such Shares, the “Available Shares”). In the event Counterparty shall not have delivered the
full number of Shares otherwise deliverable as a result of this paragraph (the resulting deficit, the “Deficit Shares”), Counterparty shall be 

  

 12 

 
continually obligated to deliver, from time to time until the full number of Deficit Shares have been delivered pursuant to this paragraph, Shares when, and
to the extent, that (i) Shares are repurchased, acquired or otherwise received by Counterparty or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (ii) authorized
and unissued Shares reserved for issuance in respect of other transactions prior to such date which prior to the relevant date become no longer so reserved and (iii) Counterparty additionally authorizes any unissued Shares that are not reserved
for other transactions. Counterparty shall immediately notify Deutsche of the occurrence of any of the foregoing events (including the number of Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be
delivered) and promptly deliver such Shares thereafter. 
 Additional Termination Event. The occurrence of any of the following shall
constitute an Additional Termination Event with respect to which (1) Counterparty shall be the sole Affected Party and (2) the Transaction shall be the sole Affected Transaction; provided that with respect to any Additional
Termination Event, Deutsche may choose to treat part of the Transaction as the sole Affected Transaction, and, upon 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) Deutsche reasonably determines that it is advisable to terminate a portion of the Transaction so that Deutsche’s related hedging activities will comply with applicable securities laws, rules or regulations;

 (ii) the Shares are not approved for listing on a U.S. national securities exchange; 
 (iii) any “person” or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act or any successor
provisions, including any group acting for the purpose of acquiring, holding, voting or disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act or any successor provision) is or becomes the “beneficial owner”
(as that term is used in Rule 13d-3 under the Exchange Act as in effect on the Trade Date, except that the number of shares of Counterparty’s voting stock will be deemed to include, in addition to all outstanding shares of Counterparty’s
voting stock and shares of voting stock not outstanding that are subject to options, warrants, rights to purchase or conversion privileges exercisable within 60 days of the date of determination (“unissued shares”) deemed to be held
by the “person” or “group” or other person with respect to which the determination is being made, all unissued shares deemed to be held by all other persons), directly or indirectly, of shares representing 50% or more of the
total voting power of all outstanding classes of Counterparty’s capital stock or other interests normally entitled (without regard to the occurrence of any contingency) to vote in the election of the board of directors, managers or trustees
(“voting stock”) or has the power, directly or indirectly, to elect a majority of the members of Counterparty’s board of directors, unless the exception provided in clause (iv)(2) below applies; 
 (iv) Counterparty consolidates with, enters into a binding share exchange with or merges with or into, another person, or Counterparty assigns, conveys,
transfers, leases or otherwise disposes of all or substantially all of its assets, or any person consolidates with, or merges with or into, Counterparty, unless either (1) the persons that “beneficially owned,” directly or indirectly,
the shares of Counterparty’s voting stock immediately prior to such transaction, “beneficially own,” directly or indirectly, shares of Counterparty’s voting stock representing at least a majority of the total voting power of all
outstanding classes of voting stock of the surviving or transferee person or (2) at least 90% of the consideration paid for the Shares (other than cash payments for fractional shares or pursuant to dissenters’ appraisal rights) in such
transaction consists of shares of common stock traded on a U.S. national securities exchange (or which will be so traded immediately following such transaction); 
 (v) (a) individuals who on the Trade Date constituted Counterparty’s board of directors and (b) any new directors whose election to Counterparty’s board of directors or whose nomination for
election by Counterparty’s stockholders was approved by at least a majority of the directors at the time of such election or nomination still in office either who were directors on the Trade Date or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority of Counterparty’s board of directors; or 
 (vi) the holders of
Counterparty’s capital stock approve any plan or proposal for liquidation or dissolution of Counterparty. 
  

 13 

 Transfer or Assignment. Notwithstanding any provision of the Agreement to the contrary, Deutsche
may, subject to applicable law, freely transfer and assign all of its rights and obligations under the Transaction without the consent of Counterparty to any major broker or dealer or other financial institution that regularly enters into OTC equity
derivatives. 
 If, as determined in Deutsche’s sole discretion, (x) its “beneficial ownership” (within the meaning of
Section 16 of the Exchange Act and rules promulgated thereunder) exceeds 8.5% of Counterparty’s outstanding Shares and (y) Deutsche is unable, after commercially reasonable efforts, to effect a transfer or assignment on pricing terms
and within a time period reasonably acceptable to it of all or a portion of the Transaction to reduce such “beneficial ownership” below 8.5%, Deutsche may designate any Scheduled Trading Day as an Early Termination Date with respect to a
portion (the “Terminated Portion”) of this Transaction, such that its “beneficial ownership” following such partial termination will be approximately equal to but less than 8.5%. In the event that Deutsche so designates an
Early Termination Date with respect to a portion of this Transaction, a payment shall be made pursuant to Section 6 of the Agreement as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical
to this Transaction and a Number of Warrants equal to the Terminated Portion (allocated among the Components thereof in the discretion of Deutsche), (ii) Counterparty shall be the sole Affected Party with respect to such partial termination and
(iii) such Transaction shall be the only Terminated Transaction (and, for the avoidance of doubt, the provisions set forth under the caption “Alternative Calculations and Counterparty Payment on Early Termination and on Certain
Extraordinary Events” shall apply to any amount that is payable by Counterparty to Deutsche pursuant to this sentence). 
 Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Deutsche to purchase, sell, receive or deliver any shares or other securities to or from Counterparty, Deutsche may designate any of its
affiliates to purchase, sell, receive or deliver such shares or other securities and otherwise to perform Deutsche’s obligations in respect of the Transaction and any such designee may assume such obligations. Deutsche shall be discharged of
its obligations to Counterparty to the extent of any such performance. 
 Severability; Illegality. If compliance by either party with
any provision of the Transaction would be unenforceable or illegal, (a) the parties shall negotiate in good faith to resolve such unenforceability or illegality in a manner that preserves the economic benefits of the transactions contemplated
hereby and (b) the other provisions of the Transaction shall not be invalidated, but shall remain in full force and effect. 
 Waiver
of Jury Trial. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE TRANSACTION. EACH PARTY (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT
AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN. 
 Governing law: The law of the State of New York. 
 Contact information. For purposes of the Agreement (unless otherwise specified in
the Agreement), the addresses for notice to the parties shall be: 
 (a) Counterparty 
 Endo Pharmaceuticals Holdings Inc. 
 100 Endo Boulevard 
 Chadds Ford, PA 19317 
 Attention: Chief Legal Officer 
 Telephone: 610-558-9800 
 Fax: 610-558-9684 
  

 14 

 (b) Deutsche 
 Deutsche Bank
AG, London Branch 
 c/o Deutsche Bank Securities Inc. 
 60 Wall
Street 
 New York, NY 10005 
 Attention: Documentation Department

 and 
 c/o Deutsche Bank Securities Inc. 
 60 Wall Street, NYC60-0425 
 New York, New York 10005-2858 
 Attn: Equity Capital Markets 
 Fax No.: 212-797-0058 
 Tel No.: 212-250-2717 
  

 15 

 This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. 
 Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below and returning to Deutsche a facsimile of the fully-executed Confirmation to Deutsche at 44 113 336 2009. Originals shall be provided for your execution upon your request.

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

  

			
	Very truly yours,
	
	DEUTSCHE BANK AG, LONDON BRANCH
		
	By:	 	 /s/ Paul Maley

	Name:	 	Paul Maley
	Title:	 	Director
		
	By:	 	 /s/ Lee Frankenfield

	Name:	 	Lee Frankenfield
	Title:	 	Managing Director
	
	 DEUTSCHE BANK SECURITIES INC.
 acting
solely as Agent in connection with this Transaction

		
	By:	 	 /s/ Paul Maley

	Name:	 	Paul Maley
	Title:	 	Director
		
	By:	 	 /s/ Lee Frankenfield

	Name:	 	Lee Frankenfield
	Title:	 	Managing Director

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

 

			
	ENDO PHARMACEUTICALS HOLDINGS INC.
		
	By:	 	 /s/ Charles A. Rowland, Jr.

	Name:	 	Charles A. Rowland, Jr.
	Title:	 	Executive Vice President, Chief Financial Officer and Treasurer

 ANNEX A 
 Registration Settlement and Private Placement Settlement 
  

	(i)	If Counterparty elects to settle the Transaction pursuant to this clause (i) (a “Private Placement Settlement”), then delivery of Restricted Shares by
Counterparty shall be effected in customary private placement procedures with respect to such Restricted Shares reasonably acceptable to Deutsche; provided that Counterparty may not elect a Private Placement Settlement if, on the date of its
election, it has taken, or caused 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 Counterparty to Deutsche (or any affiliate designated by Deutsche) of the
Restricted Shares or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Restricted Shares by Deutsche (or any such affiliate of Deutsche). The Private Placement Settlement of such Restricted
Shares shall include customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Deutsche, due diligence rights (for Deutsche or any buyer of the Restricted Shares designated by Deutsche),
opinions and certificates, and such other documentation as is customary for private placement agreements, all reasonably acceptable to Deutsche; provided, however, if Deutsche is not reasonably satisfied with such due diligence rights
or no such rights are afforded to Deutsche or such buyer designated by Deutsche due to circumstances outside Counterparty’s control that make such investigation impractical, then such dissatisfaction or the failure by Counterparty to afford
Deutsche (or any buyer of the Restricted Shares designated by Deutsche) with such investigation rights shall not provide a basis for Deutsche to refuse to accept the Restricted Shares by means of a private placement and Deutsche shall be entitled to
disclose to any buyer of the Restricted Shares the circumstances giving rise to such dissatisfaction or failure. In the event of a Private Placement Settlement, the Net Share Settlement Amount or the Counterparty Payment Obligation, respectively,
shall be deemed to be the Net Share Settlement Amount or the Counterparty Payment Obligation, respectively, plus an additional amount (determined from time to time by the Calculation Agent in its commercially reasonable judgment) attributable
to interest that would be earned on such Net Share Settlement Amount or the Counterparty Payment Obligation, respectively, (increased on a daily basis to reflect the accrual of such interest and reduced from time to time by the amount of net
proceeds received by Deutsche as provided herein) at a rate equal to the open Federal Funds Rate plus 50 basis points per annum for the period from, and including, such Settlement Date or the date on which the Counterparty Payment Obligation is due,
respectively, to, but excluding, the related date on which all the Restricted Shares have been sold and calculated on an Actual/360 basis. 

  

	(ii)	If Counterparty elects to settle the Transaction pursuant to this clause (ii) (a “Registration Settlement”), then Counterparty shall promptly (but in any event
no later than the beginning of the Resale Period) file and use its reasonable best efforts to make effective under the Securities Act a registration statement or supplement or amend an outstanding registration statement in form and substance
reasonably satisfactory to Deutsche, to cover the resale of such Restricted Shares (and any Make-whole Shares) in accordance with customary resale registration procedures, including covenants, conditions, representations, underwriting discounts (if
applicable), commissions (if applicable), indemnities, due diligence rights, opinions and certificates, and such other documentation as is customary for equity resale underwriting agreements, all reasonably acceptable to Deutsche. If Deutsche, in
its sole reasonable discretion, is not satisfied with such procedures and documentation, Private Placement Settlement shall apply. If Deutsche is satisfied with such procedures and documentation, it shall sell the Restricted Shares (and any
Make-whole Shares) pursuant to such registration statement during a period (the “Resale Period”) commencing on the Exchange Business Day following delivery of such Restricted Shares (and any Make-whole Shares) and ending on the
earliest of (i) the Exchange Business Day on which Deutsche completes the sale of all Restricted Shares or, in the case of settlement of Termination Delivery Units, a sufficient number of Restricted Shares so that the realized net proceeds of
such sales exceed the Counterparty Payment Obligation, (ii) the date upon which all Restricted Shares (and any Make-whole Shares) have been sold or transferred pursuant to Rule 144 (or similar provisions then in force) under the Securities Act
and (iii) the date upon which all Restricted Shares (and any Make-whole Shares) may be sold or transferred by a non-affiliate pursuant to Rule 144 (or any similar provision then in force) under the Securities Act without any further restriction
whatsoever. 

  

 A-1 

	(iii)	If (ii) above is applicable and the Net Share Settlement Amount or the Counterparty Payment Obligation, as applicable, exceeds the realized net proceeds from such resale, or if
(i) above is applicable and the Freely Tradeable Value (as defined below) of the Shares owed pursuant to the Net Share Settlement Amount, or the Counterparty Payment Obligation (in each case as adjusted pursuant to (i) above), as
applicable, exceeds the realized net proceeds from such resale, Counterparty shall transfer to Deutsche by the open of the regular trading session on the Exchange on the Exchange Business Day immediately following the last day of the Resale Period
the amount of such excess (the “Additional Amount”), at its option, either in cash or in a number of Restricted Shares (“Make-whole Shares”, provided that the aggregate number of Restricted Shares and
Make-whole Shares delivered shall not exceed the Maximum Delivery 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 value equal to the Additional Amount. If Counterparty elects to pay the Additional Amount in Make-whole Shares, Counterparty shall elect whether the requirements and provisions for either Private Placement Settlement or Registration
Settlement shall apply to such payment. This provision shall be applied successively until the Additional Amount is equal to zero, subject to “Limitation on Delivery of Shares”. “Freely Tradeable Value” means the
value of the number of Shares delivered to Deutsche which such Shares would have if they were freely tradeable (without prospectus delivery) upon receipt by Deutsche, as determined by the Calculation Agent by reference to the Relevant Price for
freely tradeable Shares as of the Valuation Date, or other date of valuation used to determine the delivery obligation with respect to such Shares, or by other commercially reasonable means. 

  

	(iv)	For the avoidance of doubt, nothing contained in this Annex A shall be read as requiring Counterparty, unless it so elects as provided above, to deliver cash in respect of the
settlement of the transactions contemplated by the Agreement. 

  

 A-2

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