Document:

EX-10.1

Exhibit 10.1

EXECUTION
COPY

Confirmation of OTC Convertible Note Hedge

	 	 	 
	Date:

	 	September 9, 2008
	 
	 	 
	To:

	 	Mylan Inc. (“Counterparty”)
	 
	 	 
	From:

	 	Merrill Lynch International
(“Dealer”)

Dealer Reference: 088593440

Dear Sir / Madam:

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the above-referenced transaction entered into among Counterparty, Dealer and Merrill
Lynch, Pierce, Fenner & Smith Incorporated (the “Agent”), on the Trade Date specified below
(the “Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the
Agreement specified below.

     The definitions and provisions contained in the 2000 ISDA Definitions (the “Swap
Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions” and, together with the Swap Definitions, the “Definitions”), in each case
as published by the International Swaps and Derivatives Association, Inc. are incorporated into
this Confirmation. In the event of any inconsistency between the Swap Definitions and the Equity
Definitions, the Equity Definitions will govern, and in the event of any inconsistency between the
Definitions and this Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Share Option Transaction” for purposes of the
Equity Definitions and a “Swap Transaction” for the purposes of the Swap Definitions.

     This Confirmation evidences a complete binding agreement between you and us as to the terms of
the Transaction to which this Confirmation relates. This Confirmation (notwithstanding anything to
the contrary herein), shall be subject to, and form part of, an agreement in the 1992 form of the
ISDA Master Agreement (the “Master Agreement”
or “Agreement”), as if we had
executed an agreement in such form, including a Credit Support Annex (Bilateral Form — New York
law version), (but without any Schedule and with the elections specified in the “ISDA Master
Agreement” Section of this Confirmation) on the Trade Date. In the event of any inconsistency
between the provisions of that Agreement and this Confirmation, this Confirmation will prevail for
the purpose of this Transaction. The parties hereby agree that the Transaction evidenced by this
Confirmation shall be the only Transaction subject to and governed by the Agreement.

     The parties acknowledge that this Confirmation is entered into on the date hereof with the
understanding that the provisions of the Note Indenture (as defined below) that are referred to
herein will conform to the descriptions thereof in the Offering Memorandum dated September 9, 2008
(the “Offering Memorandum”) relating to the Reference Notes (as defined below). The
parties agree that in the event of any inconsistency between the Note Indenture and the Offering
Memorandum, the parties will amend this Confirmation in good faith to preserve the intent of the
parties.

     The terms of the particular Transaction to which this Confirmation relates
are as follows:

     General Terms: 

	 	 	 
	Trade Date:

	 	September 9, 2008

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	Effective Date:

	 	The date of issuance of the Reference Notes.
	 
	 	 
	Option Style:

	 	Modified American, as described under “Settlement Terms” below.
	 
	 	 
	Option Type:

	 	Call
	 
	 	 
	Seller:

	 	Dealer
	 
	 	 
	Buyer:

	 	Counterparty
	 
	 	 
	Shares:

	 	The shares of Common Stock, $0.50 par value, of Counterparty (Security
Symbol: “MYL”).
	 
	 	 
	Number of Options:

	 	The number of Reference Notes in denominations of USD1,000 principal amount
issued by Counterparty on the closing date for the initial issuance of the
Reference Notes; provided that the Number of Options shall be automatically
increased as of the date of exercise by Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Goldman, Sachs & Co. of the Initial Purchasers’ (as
such term is defined in the Purchase Agreement) option to purchase
additional Reference Notes pursuant to Section 2(b) of the Purchase
Agreement related to the purchase and sale of the Reference Notes dated as
of September 9, 2008 among Counterparty and the Initial Purchasers (the
“Purchase Agreement”) by the number of Reference Notes in denominations of
USD1,000 principal amount issued pursuant to such exercise (such Reference
Notes, the “Additional Reference Notes”).
	 
	 	 
	Number of Shares:

	 	The product of the Number of Options and the Conversion Reference Rate (as
defined in the Note Indenture), but without regard to any adjustment to the
Conversion Reference Rate as a result of the Excluded Provisions of the Note
Indenture.
	 
	 	 
	Applicable Percentage:

	 	 70%
	 
	 	 
	Premium:

	 	 $98,105,000; provided that if the Number of Options is increased pursuant to
the proviso to the definition of “Number of Options” above, an additional
Premium equal to the product of the number of Options by which the Number of
Options is so increased and $3.73359 shall be paid on the Additional Premium
Payment Date.
	 
	 	 
	Premium Payment Date:

	 	The date of issuance of the Reference Notes.
	 
	 	 
	Additional Premium Payment Date:

	The closing date for the purchase and sale of the Additional Reference Notes.
	 
	 	 
	Exchange:

	 	New York Stock Exchange
	 
	 	 
	Related Exchange(s):

	 	All Exchanges

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	Reference Notes:

	 	3.75% Cash Convertible Senior Notes due 2015 of Counterparty
	 
	 	 
	Note Indenture:

	 	The indenture, dated as of closing of the issuance of the Reference Notes,
between Counterparty, and the guarantors named therein and The Bank of New
York, as trustee relating to the Reference Notes, as in effect on the date
of its execution. For the avoidance of doubt, references in this
Confirmation to the “Note Indenture” and to terms defined therein shall be
deemed to exclude any amendments to the Note Indenture that would have the
effect of altering the obligations of the parties hereunder unless the
parties agree otherwise in writing. Certain capitalized terms used but not
defined herein have the meanings assigned to them in the Note Indenture. As
used herein, the term “Description of Notes” refers to the section of the
Offering Memorandum bearing that designation.
	 
	 	 
	Procedures for Exercise:
	 	 
	 
	 	 
	Potential Exercise Dates:

	 	Each Cash Conversion Trigger Date.
	 
	 	 
	Conversion Date:

	 	Each “cash conversion trigger date” for any Reference Note pursuant to the
terms of the Note Indenture occurring before the Expiration Date.
	 
	 	 
	Exercise on Conversion Dates:

	 	On each Conversion Date, a number of Options equal to the number of
Reference Notes in denominations of USD1,000 principal amount validly
submitted for conversion on such Conversion Date in accordance with the
terms of the Note Indenture shall be automatically exercised.
	 
	 	 
	Exercise Period:

	 	The period from and excluding the Effective Date to and including the
Expiration Date.
	 
	 	 
	Expiration Date:

	 	The earliest of (i) the stated maturity of the Reference Notes and (ii) the
first day on which none of such Reference Notes remain outstanding, whether
by virtue of conversion, issuer repurchase or otherwise.
	 
	 	 
	Multiple Exercise:

	 	Applicable, as provided above under “Exercise on Conversion Dates”.
	 
	 	 
	Minimum Number of Options:

	 	Zero
	 
	 	 
	Maximum Number of Options:

	 	Number of Options
	 
	 	 
	Automatic Exercise:

	 	As provided above under “Exercise on Conversion Dates”.

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	Exercise Notice:	 	Notwithstanding the exercise of any Options hereunder, Buyer shall be
entitled to receive the deliveries provided under “Settlement Terms” below
only if Buyer shall have delivered to Seller a written notice (“Exercise
Notice”) prior to 5:00 PM, New York City time, on the “Business Day”, as
defined in the Note Indenture, prior to the first Scheduled Trading Day of
the Conversion Reference Period relating to the Reference Notes converted on
the Conversion Date occurring on the relevant Exercise Date (such time, the
“Notice Deadline”) of (i) the number of Options being exercised, (ii) the
first Scheduled Trading Day of the Conversion Reference Period and (iii) the
scheduled settlement date under the Note Indenture for the Reference Notes
converted on the Conversion Date occurring on the Exercise Date for such
exercise; provided that with respect to Reference Notes converted during the
period beginning on the 45th “Scheduled Trading Day:” (as defined in the
Note Indenture) prior to the “Stated Maturity” (as defined in the Note
Indenture) of the Reference Notes and ending on the final date on which
Reference Notes may be surrendered for cash conversion, the related Exercise
Notice need not contain the information specified in clause (i) of this
sentence and, in order to exercise any Options hereunder, Buyer shall
deliver to Seller prior to 5:00 p.m. New York City time on the Business Day
prior to such Stated Maturity a written notice (“Supplemental Exercise
Notice”) setting forth the number of Reference Notes converted during such
period; provided further that, notwithstanding the foregoing, any Exercise
Notice (and the related automatic exercise of Options) shall be effective if
given after the relevant Notice Deadline but prior to 5:00 PM New York City
time, on the fifth Scheduled Trading Day following the Notice Deadline, in
which event the Calculation Agent shall adjust the Delivery Obligation (as
defined below) as appropriate to reflect the additional costs (including,
but not limited to, hedging mismatches and market losses) and reasonable
expenses incurred by Seller in connection with its hedging activities
(including the unwinding of any hedge position) as a result of its not
having received such notice prior to the applicable Notice Deadline.
	 
	 	 	 	 
	Seller’s Telephone Number and

	Address:
	 	Merrill Lynch International
	Telex and/or Facsimile Number

	 	 	Merrill Lynch Financial Centre
	and Contact Details for purpose

	 	 	2 King Edward Street
	of Giving Notice:

	 	 	 	Merrill Lynch Financial Centre
	 

	 	 	 	London EC1A 1HQ
	 

	 	Attention:
	 	Manager of Equity Documentation
	 

	 	Facsimile No.:
	 	 +44 207 995 2004
	 

	 	Telephone No.:
	 	 +44 207 995 3769
	Settlement Terms:
	 	 	 	 
	 
	 	 	 	 
	Settlement Date:	 	The settlement date specified in the Note Indenture for the payment of the
Conversion Reference Value upon the conversion of Reference Notes.

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	Delivery Obligation:

	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity
Definitions, and subject to “Exercise Notice” above and “Condition to
Delivery Obligation” below, in respect of an Exercise Date occurring on a
Conversion Date, Seller will pay to Buyer on the related Settlement Date an
amount in cash equal to the product of (w) the Applicable Percentage, (x)
the number of Options exercised on such Exercise Date and (y) the sum, for
each Trading Day during the Conversion Reference Period for such Exercise
Date, of the excess, if any, of (i) the Daily Conversion Reference Value on
such Trading Day over (ii) the quotient of $1,000 divided by the number of
Trading Days in such Conversion Reference Period (such amount, the
“Convertible Obligation”); provided that the Delivery Obligation shall be
determined by excluding any amount that Buyer is obligated to pay to holders
of the Reference Notes as a direct or indirect result of any adjustments to
the Conversion Reference Rate pursuant to the Excluded Provisions of the
Note Indenture and, for the avoidance of doubt, any interest payment or
distribution that Buyer is obligated to deliver in respect of References
Notes converted on such Conversion Date.
	 
	 	 
	Condition to Delivery Obligation:

	 	Notwithstanding anything to the contrary in this Confirmation or the
Agreement, Dealer’s obligation to pay Counterparty the Delivery Obligation
in respect of any Exercise Date shall be conditioned upon Counterparty’s
payment of the Conversion Reference Value (as defined in the Note Indenture)
in respect of all the Reference Notes converted on the Conversion Date
occurring on such Exercise Date.
	 
	 	 
	Excluded Provisions:

	 	Those provisions of the Note Indenture that provide for discretionary or
voluntary adjustments of the conversion reference rate by the Issuer.
Notwithstanding anything to the contrary herein or in the Equity
Definitions, in no event shall any adjustments in respect of any Potential
Adjustment Event or Extraordinary Event be made hereunder as a result of any
adjustments to the Conversion Reference Rate pursuant to the Excluded
Provisions of the Note Indenture.
	 
	 	 
	Conversion Reference Period:

	 	For any Exercise Date, the “conversion reference period” as defined in the
Note Indenture with respect to the Conversion Date occurring on such
Exercise Date.
	 
	 	 
	Other Applicable Provisions:

	 	To the extent Seller is obligated to deliver Shares hereunder, the
provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in Section 9.11 of the Equity
Definitions shall be modified by excluding any representations therein
relating to restrictions, obligations, limitations or requirements under
applicable securities laws as a result of the fact that Buyer is the issuer
of the Shares) and 9.12 of the Equity Definitions will be applicable as if
“Physical Settlement” applied to the Transaction.
	 
	 	 
	Adjustments:
	 	 
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment; provided that the terms of this Transaction
shall be adjusted in a manner consistent with adjustments of the Conversion
Reference Rate of the Reference Notes as provided in the Note Indenture;
provided that no adjustment in respect of any Potential Adjustment Event or
Extraordinary Event shall be made hereunder as a result of any adjustments
to the Conversion Reference Rate pursuant to the Excluded Provisions of the
Note Indenture.

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	Potential Adjustment Event:

	 	Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential
Adjustment Event” means, subject to the preceding paragraph, the occurrence
of an event or condition that would result in an adjustment of the
Conversion Reference Rate of the Reference Notes pursuant to the Note
Indenture.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Merger Events:

	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition to which the sections of the
Note Indenture corresponding to “Rights of Holders to Require Cash
Conversion of Notes — Business Combinations” in the Description of Notes
apply.
	 
	 	 
	Consequences for Merger Events:
	 	 
	 
	 	 
	     Share-for-Share:

	 	The Transaction will be adjusted in a manner corresponding to the
adjustments to the Reference Notes as provided in the Note Indenture.
	 
	 	 
	     Share-for-Other:

	 	The Transaction will be adjusted in a manner corresponding to the
adjustments to the Reference Notes as provided in the Note Indenture.
	 
	 	 
	     Share-for-Combined:

	 	The Transaction will be adjusted in a manner corresponding to the
adjustments to the Reference Notes as provided in the Note Indenture.
	 
	 	 
	Notice of Merger Consideration:

	 	Upon the occurrence of a Merger Event that causes the Shares to be converted
into the right to receive more than a single type of consideration
(determined based in part upon any form of stockholder election), Buyer
shall reasonably promptly (but in any event on or prior to the effective
date of such Merger Event) notify the Calculation Agent of the weighted
average of the types and amounts of consideration received by the holders of
Shares entitled to receive cash, securities or other property or assets with
respect to or in exchange for such Shares in any Merger Event who
affirmatively make such an election.
	 
	 	 
	Tender Offer:

	 	Applicable, subject to “Consequences of Tender Offers” below.
Notwithstanding Section 12.1(d) of the Equity Definitions, “Tender Offer”
means the occurrence of any event or condition to which the provisions of
the Note Indenture governing adjustments to the Conversion Reference Rate in
connection with a “tender offer” or “exchange offer” apply.
	 
	 	 
	Consequences of Tender Offers:

	 	The Transaction will be adjusted in a manner corresponding to the
adjustments to the Reference Notes as provided in the Note Indenture.
	 
	 	 
	Nationalization, Insolvency and

Delisting:

	 	Cancellation and Payment (Calculation Agent Determination). In addition to
the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will
also constitute a Delisting if the Exchange is located in the United States
and the Shares are not immediately re-listed, re-traded or re-quoted on any
of the New York Stock Exchange, the American Stock Exchange, the NASDAQ
Global Market or the NASDAQ Global Select Market (or their respective
successors); if the Shares are immediately re-listed, re-traded or re-quoted
on any such exchange or quotation system, such exchange or quotation system
shall thereafter be deemed to be the Exchange.

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	Additional Disruption Events:
	 	 
	 
	 	 
	     Change in Law:

	 	Applicable , provided that clause (Y) of Section 12.9(a)(ii) of the Equity
Definitions shall not be applicable insofar as any event described therein
results in an increased cost to Dealer of hedging the Transaction which
increased cost would have been included under Increased Cost of Hedging if
such provision were applicable.
	 
	 	 
	     Insolvency Filing:

	 	Applicable
	 
	 	 
	     Hedging Disruption
Event:

	Not Applicable
	 
	     Increased Cost of
Hedging:

	Not Applicable
	 
	     Loss of Stock Borrow:

	Not Applicable
	 
	 	 
	     Increased Cost of
Stock Borrow:

	Not Applicable
	 
	 	 
	     Hedging Party:

	 	Seller
	 
	 	 
	     Determining Party:

	 	Seller
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments
Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable

Additional Agreements, Representations and Covenants of Buyer, Etc.: 

	1.	 	Buyer hereby represents and warrants to Seller, on each day from the Trade Date to and
including the earlier of (i) October 7, 2008 and (ii) the date by which Seller is able to
initially complete a hedge of its position relating to this Transaction (including of any
increase in the Number of Options resulting from exercise of the over-allotment option
pursuant to Section 2(b) of the Purchase Agreement), that:

	 	a.	 	it will effect (and cause any “affiliated purchaser” (as defined in Rule 10b-18
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) to effect) any purchases, direct or indirect (including by means of any
cash-settled or other derivative instrument), of Shares or any security convertible
into or exchangeable or exercisable for Shares on any single day solely through either
Merrill Lynch, Pierce, Fenner & Smith Incorporated or Goldman, Sachs & Co. in a manner
that would not cause any purchases by Seller of its hedge in connection with this
Transaction not to comply with applicable securities laws; provided that this clause
(a) shall not apply to any transactions in Shares effected directly between Buyer and
its employees pursuant to an employee share incentive or benefit plan;

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	 	b.	 	it will not engage in, or be engaged in, any “distribution,” as such term is
defined in Regulation M promulgated under the Exchange Act, other than a distribution
meeting the requirements of the exceptions set forth in sections 101(b)(10) and
102(b)(7) of Regulation M (it being understood that Buyer makes no representation
pursuant to this clause in respect of any action or inaction taken by Seller or any
initial purchaser of the Reference Notes); and
	 
	 	c.	 	Buyer has publicly disclosed all material information necessary for Buyer to be
able to purchase or sell Shares in compliance with applicable federal securities laws.

	2.	 	Counterparty is not, and after giving effect to the Transaction contemplated hereby, will not
be, an “investment company” as such term is defined in the Investment Company Act of 1940, as
amended.
	 
	3.	 	As of the Trade Date and each date on which a payment or delivery is made by Counterparty
hereunder, (i) the assets of Counterparty at their fair valuation exceed the liabilities of
Counterparty, including contingent liabilities; (ii) the capital of Counterparty is adequate
to conduct its business; and (iii) Counterparty has the ability to pay its debts and other
obligations as such obligations mature and does not intend to, or believe that it will, incur
debt or other obligations beyond its ability to pay as such obligations mature.
	 
	4.	 	The representations and warranties set forth in Section 1 of the Purchase Agreement (as
defined herein) are hereby deemed to be repeated to Dealer as if set forth herein.

Additional Termination Events: 

The occurrence of an Amendment Event or a Repayment Event shall be an Additional Termination Event
with respect to which the Transaction is the sole Affected Transaction, Counterparty is the sole
Affected Party and Dealer is the sole party entitled to designate an Early Termination Date;
provided that in the case of a Repayment Event, the Transaction shall be subject to termination
only in respect of the number of Reference Notes that cease to be outstanding in connection with or
as a result of such Repayment Event and, notwithstanding anything to the contrary in this
Agreement, no payments shall be required under this Agreement with respect to such number of
Reference Notes:

	1.	 	“Amendment Event” means that the Counterparty, without Dealer’s consent, amends,
modifies, supplements or obtains a waiver of (a) any term of the Note Indenture (as in effect
prior to such amendment, modification, supplement or waiver) or the Reference Notes relating
to the principal amount, coupon, maturity, repurchase obligation of the Counterparty or
redemption right of the Counterparty, (b) any material term relating to conversion of the
Reference Notes, including, without limitation, any changes to the conversion price,
conversion settlement dates or conversion conditions or (c) any term that would require
consent of the holders of 100% of the principal amount of the Reference Notes to amend.
	 
	2.	 	“Repayment Event” means that (a) any Reference Notes are repurchased (whether in
connection with or as a result of a fundamental change or change of control, howsoever
defined, or for any other reason) by the Counterparty, (b) any Reference Notes are delivered
to the Counterparty in exchange for delivery of any property or assets of the Counterparty or
any of its subsidiaries (howsoever described), other than as a result of and in connection
with a Conversion Date, (c) any principal of any of the Reference Notes is repaid prior to the
Stated Maturity (as defined in the Note Indenture) (whether following acceleration of the
Reference Notes or otherwise), provided that no payments of cash made in respect of the
conversion of a Reference Note shall be deemed a payment of principal under this clause (c),
(d) any Reference Notes are exchanged by or for the benefit of the holders thereof for any
other securities of the Counterparty or any of its Affiliates (or any other property, or any
combination thereof) pursuant to any exchange offer or similar transaction (other than an
exchange of the Reference Notes for a new series of notes of the Counterparty that are
substantially identical to the Reference Notes other than in respect of

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restrictions on transfer) or (e) any of the Reference Notes is surrendered by Counterparty
to the trustee for cancellation, other than registration of a transfer of such Reference
Notes or as a result of and in connection with a Conversion Date.

Initial Purchase Event:

If an Initial Purchase Event (as defined below) occurs, all of the respective rights and
obligations of Dealer and Counterparty hereunder shall be cancelled and terminated, except that
Counterparty shall pay to Dealer an amount in cash equal to the aggregate amount of costs and
expenses relating to the unwinding of Dealer’s hedging activities in respect of the Transaction
(including market losses incurred in reselling any Shares purchased by Dealer or its affiliates in
connection with such hedging activities). Following such payment, each party agrees that all
obligations with respect to the Transaction shall be deemed fully and finally discharged.

“Initial Purchase Event” means that the transactions contemplated by the Purchase
Agreement shall fail to close for any reason other than in cases involving a breach of the
Purchase Agreement by the Initial Purchasers by the closing date for the offering of the
Reference Notes as specified in the Purchase Agreement.

Disposition of Hedge Shares: 

Counterparty hereby agrees that if, in the reasonable judgment of Seller based on advice of
counsel, the Shares acquired by Seller for the purpose of hedging its obligations pursuant to the
Transaction (the “Hedge Shares”) cannot be sold in the U.S. public market by Seller without
registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow
Seller to sell the Hedge Shares in a registered offering, use commercially reasonable efforts to
make available to Seller 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
Seller, 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 Seller, (d) provide other customary opinions, certificates
and closing documents customary in form for registered offerings of equity securities and (e)
afford Seller 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 Seller, in its sole reasonable discretion, is not satisfied with access to due diligence
materials, the results of its due diligence investigation, or the procedures and documentation for
the registered offering referred to above, then clause (ii) or clause (iii) of this Section shall
apply at the election of Counterparty; (ii) in order to allow Seller 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 by a publicly
reporting company (if Counterparty is a publicly reporting company at such time) to institutional
purchasers, in form and substance satisfactory to Seller, including reasonable and customary
representations, covenants, blue sky and other governmental filings and/or registrations,
indemnities to Seller, due diligence rights (for Seller or any designated buyer of the Hedge Shares
from Seller), opinions and certificates and such other documentation as is customary for private
placements agreements, all reasonably acceptable to Seller (in which case, the Calculation Agent
shall make any adjustments to the terms of the Transaction that are necessary to compensate Seller
for any discount from the public market price of the Shares (other than any discount in respect of
commissions or fees payable to any third party) incurred on the sale of Hedge Shares in a private
placement); or (iii) purchase the Hedge Shares from Seller at the VWAP Price on such Exchange
Business Days, and in such amounts, as requested by Seller. “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 MYL.N <equity> VAP (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).

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Repurchase Notices:

Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, promptly
give Seller a written notice of such repurchase (a “Repurchase Notice”) on such day if
following such repurchase, the Notice Percentage as determined on such day is (i) greater than 6%
and (ii) greater by 0.5% than the Notice Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice
Percentage as of the date hereof). In the event that Counterparty fails to provide Seller with a
Repurchase Notice on the day and in the manner specified in this section, then Counterparty agrees
to indemnify and hold harmless Seller, its affiliates and their respective directors, officers,
employees, agents and controlling persons (Seller and each such person being an “Indemnified
Party”) from and against any and all losses, claims, damages and liabilities (or actions in
respect thereof), joint or several, to which such Indemnified Party may become subject under
applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating
to or arising out of such failure. If for any reason the foregoing indemnification is unavailable
to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty
shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the
Indemnified Party as a result of such loss, claim, damage or liability. In addition, Counterparty
will reimburse any Indemnified Party for all reasonable and documented expenses (including
reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in
connection with the investigation of, preparation for or defense or settlement of any pending or
threatened claim or any action, suit or proceeding arising therefrom, whether or not such
Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is
initiated or brought by or on behalf of Counterparty. This indemnity shall survive the completion
of the Transaction contemplated by this Confirmation and any assignment and delegation of the
Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit of any
permitted assignee of Seller. Counterparty will not be liable under this Indemnity provision to
the extent that any loss, claim, damage, liability or expense is found in a final judgment by a
court to have resulted from Dealer’s gross negligence or willful misconduct. The “Notice
Percentage” as of any day is the fraction, expressed as a percentage, (i) the numerator of which is
the product of (a) the Applicable Percentage, (b) the number of outstanding Reference Notes and (c)
a number of Shares per Reference Note equal to the Conversion Reference Rate (as defined in the
Note Indenture) and (ii) the denominator of which is the number of Shares outstanding on such day).

Conversion Reference Rate Adjustment Notices

Counterparty shall provide to Dealer written notice (such notice, a “Conversion Reference Rate
Adjustment Notice”) prior to the proposed effective date of any transaction or event (a
“Conversion Reference Rate Adjustment Event”) that would lead to an increase in the
Conversion Reference Rate (as such term is defined in the Note Indenture). Each Conversion
Reference Rate Adjustment Notice shall be delivered to Dealer at or prior to the deadline for
delivery of the related notices to the trustee under the Note Indenture. In connection with the
delivery of any Conversion Reference Rate Adjustment Notice to Dealer, (x) Counterparty shall,
concurrently with or prior to such delivery, publicly announce and disclose the Conversion
Reference Rate Adjustment Event or (y) Counterparty shall, concurrently with such delivery,
represent and warrant that the information set forth in such Conversion Reference Rate Adjustment
Notice does not constitute material non-public information with respect to Counterparty or the
Shares. The Conversion Reference Rate Adjustment Notice shall set forth the new, adjusted
Conversion Reference Rate after giving effect to such Conversion Reference Rate Adjustment Event
(the “New Conversion Reference Rate”); provided that if the New Conversion Reference Rate
cannot be determined at the time of delivery of the Conversion Reference Rate Adjustment Notice,
Counterparty shall provide to Dealer written notice of the New Conversion Reference Rate as
promptly as practicable following the availability of information required for its determination.

OTC Convertible Note Hedge (2015)

10

 

	 	 	 
	Compliance with 

Securities Laws:

	 	Counterparty represents and warrants that it has received, read and
understands the OTC Options Risk Disclosure Statement and a copy of
the most recent disclosure pamphlet prepared by The Options
Clearing Corporation entitled “Characteristics and Risks of
Standardized Options.
	 
	 	 
	 

	 	Each party acknowledges and agrees to be bound by the Conduct Rules
of the National Association of Securities Dealers, Inc. applicable
to transactions in options, and further agrees not to violate the
position and exercise limits set forth therein
	 
	 	 
	 

	 	Each party acknowledges that the offer and sale of the Transaction
to it is intended to be exempt from registration under the
Securities Act by virtue of Section 4(2) thereof. Accordingly,
Buyer represents and warrants to Seller that (i) it has the
financial ability to bear the economic risk of its investment in
the Transaction and is able to bear a total loss of its investment,
(ii) it is an “accredited investor” as that term is defined in
Regulation D as promulgated under the Securities Act and (iii) the
disposition of the Transaction is restricted under this
Confirmation, the Securities Act and state securities laws.
	 
	 	 
	 

	 	Buyer further represents:
	 
	 	 
	 

	 	(a) Buyer is not entering into this Transaction to create actual or
apparent trading activity in the Shares (or any security
convertible into or exchangeable for Shares) or to raise or depress
or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares);
	 
	 	 
	 

	 	(b) Buyer acknowledges that as of the date hereof and without
limiting the generality of Section 13.1 of the Equity Definitions,
Seller is not making any representations or warranties with respect
to the treatment of the Transaction under FASB Statements 149, 150
or 157, EITF Issue No. 00-19 (or any successor issue statements),
under FASB’s Liabilities & Equity Project, or any other accounting
standard or guidance.
	 
	 	 
	Account Details:

	 	Account for payments to Buyer:      To be advised
	 
	 	 
	 

	 	Account for payment to Seller:         To be advised
	 
	 	 
	Bankruptcy Rights:

	 	In the event of Buyer’s bankruptcy, Seller’s rights in connection
with this Transaction shall not exceed those rights held by common
shareholders. For the avoidance of doubt, the parties acknowledge
and agree that Seller’s rights with respect to any other claim
arising from this Transaction prior to Buyer’s bankruptcy shall
remain in full force and effect and shall not be otherwise abridged
or modified in connection herewith.
	 
	 	 
	Set-Off:

	 	Each party waives any and all rights it may have to set-off,
whether arising under any agreement, applicable law or otherwise.
	 
	 	 
	Collateral:

	 	Counterparty shall not be required to post collateral to Dealer.

OTC Convertible Note Hedge (2015)

11

 

	 	 	 
	Transfer:

	 	Buyer shall have the right to assign its rights and delegate its
obligations hereunder with respect to any portion of this
Transaction, subject to Seller’s consent, such consent not to be
unreasonably withheld or delayed; provided that such assignment or
transfer shall be subject to receipt by Seller of opinions and
documents reasonably satisfactory to Seller and effected on terms
reasonably satisfactory to the Seller with respect to any legal and
regulatory requirements relevant to the Seller; provided further
that Buyer shall not be released from its obligation to deliver any
Exercise Notice or its obligations pursuant to “Disposition of
Hedge Shares”, “Repurchase Notices” or “Conversion Reference Rate
Adjustment Notices” above, and Buyer shall be responsible for all
reasonable costs and expenses, including reasonable counsel fees,
incurred by Seller in connection with any such transfer or
assignment. Seller may transfer any of its rights or delegate its
obligations under this Transaction with the prior written consent
of Buyer, which consent shall not be unreasonably withheld or
delayed. Buyer and Seller agree that it shall not be unreasonable
for Buyer to withhold consent to any delegation of Seller’s
obligations under this Transaction to an entity the long-term U.S.
dollar-denominated debt obligations of which are rated below A by
Standard & Poors’ and below A2 by Moody’s.
	 
	 	 
	 

	 	If as determined in Dealer’s sole discretion, at any time Dealer’s
Ownership Percentage (as defined below) exceeds 8.5% (an “Excess
Ownership Position”) and Dealer, in its discretion, is unable to
effect a transfer or assignment to a third party after its
commercially reasonable efforts on pricing terms reasonably
acceptable to Dealer and within a time period reasonably acceptable
to Dealer (including without limitation where such inability of
Seller is due to Buyer’s withholding or delaying of consent to such
transfer or assignment) such that an Excess Ownership Position no
longer exists, Dealer may designate any Scheduled Trading Day as an
Early Termination Date with respect to a portion (the “Terminated
Portion”) of the Transaction, such that an Excess Ownership
Position no longer exists following such partial termination. In
the event that Dealer so designates an Early Termination Date with
respect to a portion of the Transaction, a payment or delivery
shall be made pursuant to Section 6 of the Agreement as if (i) an
Early Termination Date had been designated in respect of a
Transaction having terms identical to the Terminated Portion of the
Transaction, (ii) Counterparty were the sole Affected Party with
respect to such partial termination, (iii) such portion of the
Transaction were the only Terminated Transaction and (iv) Dealer
were the party entitled to designate an Early Termination Date
pursuant to Section 6(b) of the Agreement and to determine the
amount payable pursuant to Section 6(e) of the Agreement. The
“Ownership Percentage” as of any day is the fraction, expressed as
a percentage, (A) the numerator of which is the greater of (1) the
number of Shares that Dealer and any of its affiliates subject to
aggregation with Dealer for purposes of the “beneficial ownership”
test under Section 13 of the Exchange Act and all persons who may
form a “group” (within the meaning of Rule 13d-5(b)(1) under the
Exchange Act but excluding any group formed for the affirmative
purpose of changing or influencing control of the Issuer) with
Dealer (collectively, “Dealer Group”) “beneficially own” (within
the meaning of Section 13 of the Exchange Act) without duplication
on such day and (2) the number of shares that Dealer and all
persons comprising part of the same “acquiring person” as Dealer
“beneficially own”, as each such term is used in Counterparty’s
Rights Agreement between the Counterparty and American Stock
Transfer & Trust Company dated as of August 22, 1996, as amended as
of November 8, 1999, August 13, 2004, September 8, 2004, December
2, 2004 and December 19, 2005 (as so amended and as may be
subsequently amended, supplemented or replaced from time to time,
the “Rights Agreement”), on such day and (B) the denominator of
which is the number of Shares outstanding on such day.

OTC Convertible Note Hedge (2015)

12

 

	 	 	 
	 

	 	Dealer may assign and delegate its rights and obligations under
this Transaction without the consent of the Buyer to any subsidiary
of ML & Co. (the “Assignee”) by notice specifying the effective
date of such transfer (“Transfer Effective Date”) and including an
(i) executed acceptance and assumption by the Assignee of such
rights and obligations and (ii) evidence reasonably satisfactory to
Counterparty that such obligations of the Assignee are guaranteed
by ML & Co. to substantially the same extent as Dealer’s
obligations under this Transaction; provided that (i) Counterparty
will not, as a result of such transfer, be required to pay to the
Assignee an amount in respect of an Indemnifiable Tax under Section
2(d)(i)(4) of the Agreement (except in respect of interest under
Section 2(e), 6(d)(ii), or 6(e)) greater than the amount in respect
of which Counterparty would have been required to pay to Dealer in
the absence of such transfer; and (ii) the Assignee will not, as a
result of such transfer, be required to withhold or deduct on
account of a Tax under Section 2(d)(i) of the Agreement (except in
respect of interest under Section 2(e), 6(d)(ii), or 6(e)) an
amount in excess of that which Dealer would have been required to
withhold or deduct in the absence of such transfer, unless the
Assignee would be required to make additional payments pursuant to
Section 2(d)(i)(4) of the Agreement corresponding to such excess.
	 
	 	 
	 

	 	On the Transfer Effective Date, (a) Dealer shall be released from
all obligations and liabilities arising under this Transaction; and
(b) the assigned and delegated rights and obligations under this
Transaction shall cease to be a Transaction under the Agreement and
shall be deemed to be a Transaction under an ISDA form of Master
Agreement (Multicurrency-Cross Border) and Schedule substantially
in the form of the Agreement but amended to reflect the name of the
Assignee and the address for notices and any amended
representations under Part 2 of the Agreement as may be specified
in the notice of transfer.
	 
	 	 
	Right to Extend:

	 	Dealer may postpone any Exercise Date or Settlement Date or any
other date of valuation or delivery by Dealer, with respect to some
or all of the relevant Options (in which event the Calculation
Agent shall make appropriate adjustments to the Delivery
Obligation), if Dealer determines, in its reasonable discretion,
that such extension is reasonably necessary or appropriate to
preserve Dealer’s hedging or hedge unwind activity hereunder in
light of existing liquidity conditions in the cash market, the
stock borrow market or other relevant market or to enable Dealer to
effect purchases of Shares in connection with its hedging, hedge
unwind or settlement activity hereunder in a manner that would, if
Dealer were Counterparty or an affiliated purchaser of
Counterparty, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and
procedures applicable to Dealer.
	 
	 	 
	Regulation:

	 	Seller is regulated by The Securities and Futures Authority Limited.

Matters Relating to Agent: 

	1.	 	Agent will be responsible for the operational aspects of the Transactions effected through
it, such as record keeping, reporting, and confirming Transactions to Buyer and Seller;
	 
	2.	 	Unless Buyer is a “major U.S. institutional investor,” as defined in Rule 15a-6 of the
Exchange Act, neither Buyer nor Seller will contact the other without the direct involvement
of Agent;
	 
	3.	 	Agent’s sole role under this Agreement and with respect to any Transaction is as an agent of
Buyer and

OTC Convertible Note Hedge (2015)

13

 

	 	 	Seller on a disclosed basis and Agent shall have no responsibility or liability to Buyer or
Seller hereunder except for gross negligence or willful misconduct in the performance of its
duties as agent. Agent is authorized to act as agent for Buyer, but only to the extent
expressly required to satisfy the requirements of Rule 15a-6 under the Exchange Act in
respect of the Options described hereunder. Agent shall have no authority to act as agent
for Buyer generally or with respect to transactions or other matters governed by this
Agreement, except to the extent expressly required to satisfy the requirements of Rule 15a-6
or in accordance with express instructions from Buyer.

ISDA Master Agreement: 

With respect to the Agreement, Seller and Counterparty each agree as follows:

“Specified Entity” means in relation to Seller and in relation to Counterparty for purposes
of this Transaction: Not applicable.

The provisions of “Default under Specified Transaction” as set forth in Section 5(a)(v) of the
Agreement shall not apply to Dealer or Counterparty.

“Specified Transaction” has the meaning assigned to such term in Section 14 of the
Agreement.

The “Cross Default” provisions of Section 5(a)(vi) of the Agreement will apply to
Counterparty; provided that the text of Section 5(a)(vi) following the words “occurrence or
existence of” in the second line thereof through the end of such Section 5(a)(vi) shall be replaced
in its entirety by the following:

one or more defaults under any of the agreements, indentures or instruments under which
Issuer or any “significant subsidiary” (as such term is defined in Regulation S-X
promulgated under the Securities Act of 1933) of Issuer then has outstanding indebtedness in
excess of $50 million, individually or in the aggregate, and either (a) such default results
from the failure to pay such indebtedness at its stated final maturity and such default has
not been cured or the indebtedness repaid in full within ten days of the default or (b) such
default or defaults have resulted in the acceleration of the maturity of such indebtedness
and such acceleration has not been rescinded or such indebtedness repaid in full within ten
days of the acceleration;

The “Credit Event Upon Merger” provisions of Section 5(b)(v) of the Agreement will
not apply to Seller and will not apply to Counterparty.

The “Automatic Early Termination” provision of Section 6(a) of the Agreement will
not apply to Seller or to Counterparty.

“Termination Currency” means USD.

Payments on Early Termination. For the purpose of Section 6(e) of the Agreement: (i) Loss
shall apply; and (ii) the Second Method shall apply.

Tax Representations.

	(a)	 	Payer Representations. For the purpose of Section 3(e) of the Agreement, each party
represents to the other party that it is not required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the other
party under the Agreement. In making this representation, each party may rely on (i) the
accuracy of any representations made by the other party pursuant to Section 3(f) of the
Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
the

OTC Convertible Note Hedge (2015)

14

 

	 	 	Agreement, and the accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of
the agreement of the other party contained in Section 4(d) of the Agreement; provided that
it will not be a breach of this representation where reliance is placed on clause (ii)
above and the other party does not deliver a form or document under Section 4(a)(iii) of
the Agreement by reason of material prejudice to its legal or commercial position.
	 
	(b)	 	Payee Representations. For the purpose of Section 3(f) of the Agreement, each party makes
the following representations to the other party:
	 
	 	 	(i) Dealer represents that it is a company organized under the laws of England and Wales.
	 
	 	 	(ii) Dealer represents that it is a “non-withholding foreign partnership” for United States
Federal income tax purposes and each partner of Dealer is a “non-U.S. branch of a foreign
person” for purposes of section 1.1441-4(a)(3)(ii) of the United States Treasury Regulations
and a “foreign person” for purposes of section 1.6041-4(a)(4) of the United States Treasury
Regulations.
	 
	 	 	(iii) Dealer represents that no partner of Dealer is (i) a bank that has entered into this
Agreement in the ordinary course of its trade or business of making loans, as described in
section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”),
(ii) a 10% shareholder of Counterparty within the meaning of Code section 871(h)(3)(B), or
(iii) a controlled foreign corporation with respect to Counterparty within the meaning of
Code section 881(c)(3)(C).
	 
	 	 	(iv) Counterparty represents that it is a corporation incorporated in Pennsylvania.

Delivery Requirements. For the purpose of Sections 4(a)(i) and (ii) of the
Agreement, each party agrees to deliver the following documents:

	(a)	 	Tax forms, documents or certificates to be delivered are:
	 
	 	 	Dealer agrees to complete (accurately and in a manner reasonably satisfactory to
Counterparty), execute, and deliver to Counterparty, United States Internal Revenue Service
Form W-8IMY and all required attachments, or any successor of such form(s): (i) before the
first payment date under this agreement; (ii) promptly upon reasonable demand by
Counterparty; and (iii) promptly upon learning that any such Form previously provided by
Dealer has become obsolete or incorrect.
	 
	 	 	Counterparty agrees to complete (accurately and in a manner reasonably satisfactory to
Dealer), execute, and deliver to Dealer, United States Internal Revenue Service Form W-9 or
W-8 BEN, or any successor of such form(s): (i) before the first payment date under this
agreement; (ii) promptly upon reasonable demand by Dealer; and (iii) promptly upon learning
that any such form(s) previously provided by Counterparty has become obsolete or incorrect.
	 
	(b)	 	Other documents to be delivered:

	 	 	 	 	 	 	 
	Party Required to	 	 	 	 	 	Covered by Section
	Deliver Document	 	Document Required to be Delivered	 	When Required	 	3(d) Representation
	Counterparty and Dealer

	 	Evidence of the authority and
true signatures of each official
or representative signing this
Confirmation
	 	Upon or before
execution and
delivery of this
Confirmation
	 	Yes

OTC Convertible Note Hedge (2015)

15

 

	 	 	 	 	 	 	 
	Party Required to	 	 	 	 	 	Covered by Section
	Deliver Document	 	Document Required to be Delivered	 	When Required	 	3(d) Representation
	Counterparty

	 	Certified copy of the resolution
of the Board of Directors or
equivalent document authorizing
the execution and delivery of
this Confirmation and such other
certificates as Seller shall
reasonably request
	 	Upon or before
execution and
delivery of this
Confirmation
	 	Yes
	 
	Counterparty

	 	An opinion of counsel, dated as
of the Effective Date and
reasonably acceptable to Dealer
in form and substance, with
respect to the matters set forth
in Section 3(a) of the
Agreement.
	 	Upon or before the

Effective Date
	 	No
	 
	Dealer

	 	Guarantee of its Credit Support
Provider, substantially in the
form of Exhibit A attached
hereto, together with evidence
of the authority and true
signatures of the signatories,
if applicable
	 	Upon or before
execution and
delivery of this
Confirmation
	 	No

Additional Notice Requirements. Counterparty hereby agrees to promptly deliver to Seller a copy of
all notices and other communications required or permitted to be given to the holders of any
Reference Notes pursuant to the terms of the Note Indenture on the dates so required or permitted
in the Note Indenture and all other notices given and other communications made by Counterparty in
respect of the Reference Notes to holders of any Reference Notes. Counterparty further covenants
to Seller that it shall promptly notify Seller of each Conversion Date, Amendment Event (including
in such notice a detailed description of any such amendment) and Repayment Event (identifying in
such notice the nature of such Repayment Event and the principal amount at maturity of Reference
Notes being paid).

Addresses
for Notices. For the purpose of Section 12(a) of the Agreement:

Address for notices or communications to Seller for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	Merrill Lynch International
	 

	 	 	 	Merrill Lynch Financial Centre
	 

	 	 	 	2 King Edward Street
	 

	 	 	 	London EC1A 1HQ
	 
	 	 	 	 
	 

	 	Attention:
	 	Manager, Fixed Income Settlements
	 

	 	Facsimile No.:
	44 207 995 2004
	 

	 	Telephone No.:
	44 207 995 3769

Additionally, a copy of all notices pursuant to Sections 5, 6, and 7 as
well as any changes to Counterparty’s address, telephone number or facsimile number should be sent
to:

	 	 	 	 	 
	 

	 	Address:
	 	GMI Counsel
	 

	 	 	 	Merrill Lynch World Headquarters
	 

	 	 	 	4 World Financial Center
	 

	 	 	 	New York, New York 10080
	 
	 	 	 	 
	 

	 	Attention:
	 	Global Equity Derivatives
	 

	 	Facsimile No.:
	212-449-6576
	 

	 	Telephone No.:
	212-449-6309

Address for notices or communications to Counterparty for all purposes:

OTC Convertible Note Hedge (2015)

16

 

	 	 	 	 	 
	 

	 	Address:
	 	Mylan Inc. 

1500 Corporate Drive
	 

	 	 	 	Canonsburg, PA 15317
	 
	 

	 	Attention:
	 	Edward J. Borkowski, Chief Financial Officer
	 

	 	Facsimile No.:
	 	(724) 514 1871
	 

	 	Telephone No.:
	 	(724) 514 1870

	 	 	 
	Multibranch Party.

	 	For the purpose of
Section 10(c) of the Agreement: Neither Seller nor Counterparty is a Multibranch
Party.
	 
	 	 
	Calculation Agent.

	 	The Calculation Agent is Seller. Upon the request of
either party, the Calculation Agent (or, in the case
of a determination made by a party (including a party
acting as Hedging Party or Determining Party), such
party) shall, no later than the 5th Business Day
following such request, provide the parties with a
statement showing, in reasonable detail, the
computations (including any relevant quotations) by
which it has determined any amount payable or
deliverable under, or any adjustment to the terms of,
this Transaction; provided that in no event shall
Calculation Agent be required to disclose its
proprietary models or other proprietary information.
All judgments, determinations and calculations
hereunder by the Calculation Agent or by a party
hereto shall be performed in good faith and in a
commercially reasonable manner.

Credit Support Document.

Seller: Guarantee of Merrill Lynch & Co., Inc. in the form attached hereto as
Exhibit A and a collateral account control agreement to be entered into between
Counterparty, Dealer and MLFP&S, as custodian, (“Collateral Account Control
Agreement”) prior to any required delivery of collateral hereunder. The
Collateral Account Control Agreement shall be in customary form and reasonably
acceptable to Counterparty.

Counterparty: Not Applicable

Credit Support Provider.

With respect to Seller: Merrill Lynch & Co., Inc.

With respect to Counterparty: Not Applicable.

Collateral Provisions

     The following provisions set forth the terms and conditions of the collateral delivery
obligations of Dealer applicable to the Transaction pursuant to the Credit Support Annex.

	 	 	 
	Pledgor:

	 	Dealer
	 
	 	 
	Secured Party:

	 	Counterparty
	 
	 	 
	Collateral:

	 	Dealer will pledge Eligible
Collateral in an amount and subject to the terms as defined below.
	 
	 	 
	Credit Support Amount:

	 	As specified in Paragraph 3 of the Credit Support Annex.

OTC Convertible Note Hedge (2015)

17

 

	 	 	 
	Valuation Date (for purposes
of the CSA):

	 	Every Monday during the term of the Transaction
	 
	 	 
	Valuation Time:

	 	 5:00 PM EST
	 
	 	 
	Notification Time:

	 	10 a.m. on the next Local Business Day after the relevant Valuation Date
	 
	 	 
	Valuation Agent:

	 	Dealer
	 
	 	 
	Independent Amount:

	 	 $0
	 
	 	 
	Threshold:

	 	Infinity; provided that the Threshold shall be $50,000,000 if, and for so long as, the long-term
U.S. dollar-denominated debt obligations of Dealer’s Credit Support Provider are rated below BBB-by Standard & Poors’ and below Baa3 by Moody’s.
	 
	 	 
	Minimum Transfer Amount:

	 	 $500,000
	 
	 	 
	Custodian:

	 	Merrill Lynch, Pierce, Fenner & Smith Incorporated pursuant to a Collateral Account Control
Agreement.
	 
	 	 
	Use of Posted Collateral:

	 	The provisions of Paragraph 6(c) of the Credit Support Annex will not apply.
	 
	 	 
	Specified Condition:

	 	For purposes of Paragraph 4(a) of the Credit Support Annex, the following Termination Events will
be a Specified Condition with respect to the party that is the Affected Party for such Termination
Event: Illegality, Tax Event, Tax Event Upon Merger, Credit Event Upon Merger, Additional
Termination Events. For purposes of Paragraphs 8(a) and 8(b) of the Credit Support Annex, the
following Termination Events will be a Specified Condition with respect to the party that is the
Affected Party for such Termination Event: Credit Event Upon Merger, Additional Termination
Events.
	 
	 	 
	Eligible Collateral:

	 	The following Items will qualify as “Eligible Collateral”:

	 	 	 	 	 
	 	 	Valuation
	Item:	 	Percentage:
	(A) Cash

	 	 	100	%
	 
	 	 	 	 
	(B) Negotiable debt obligations
issued by the U.S. Treasury
Department having a remaining
maturity of not more than one year

	 	 	100	%

OTC Convertible Note Hedge (2015)

18

 

	 	 	 	 	 
	 	 	Valuation
	Item:	 	Percentage:
	(C) Securities with maturities of 90
days or less from the date of
acquisition issued by the U.S.,
Switzerland, Canada, England or a
member state of the European Union
(excluding Greece, Italy and any
Countries with sovereign debt
ratings below Aa1/AA+) or by an
instrumentality or agency of the
U.S. government, Switzerland,
Canada, England or a member state of
the European Union (excluding
Greece, Italy and any Countries with
sovereign debt ratings below
Aa1/AA+) having the same credit
rating as its government 100% $50
million maximum per non-U.S. country

	 	 	100	%
	 
	 	 	 	 
	(D) Certificates of deposit and
eurodollar time deposits with
maturities of 90 days or less from
the date of acquisition and
overnight bank deposits of any
commercial bank having stable
ratings of at least A/A-1 by S&P and
A2/P-1 by Moody’s

	 	 	100	%
	 
	 	 	 	 
	(E) Repurchase obligations of any
commercial bank satisfying the
requirements of clause (D) of this
definition, having a term of not
more than seven days with respect to
securities issued by the U.S.
Government

	 	 	100	%
	 
	 	 	 	 
	(F) Commercial paper of a corporate
issuer having stable ratings of at
least A/A- 1 by S&P and A2/P-1 by
Moody’s and maturing within 90 days
after the day of acquisition

	 	 	100	%
	 
	 	 	 	 
	(G) Securities with maturities of 90
days or less from the date of
acquisition issued by any state,
commonwealth or territory of the
U.S., by any political subdivision
or taxing authority of any such
state, commonwealth or territory,
the securities of which state,
commonwealth, territory, political
subdivision or taxing authority (as
the case may be) having stable
ratings of at least A by S&P and A2
by Moody’s

	 	 	100	%
	 
	 	 	 	 
	(H) Securities with maturities of 90
days or less from the date of
acquisition backed by standby
letters of credit issued by any
Lender or any commercial bank
satisfying the requirements of
clause (D) of this definition

	 	 	100	%
	 
	 	 	 	 
	(I) Shares of money market mutual or
similar funds that conform with Rule
2a-7 of the Investment Companies Act
of 1940 and having a minimum asset
size of $3 billion which invest
exclusively in assets satisfying the
requirements of clauses (C) through
(H) of this definition

	 	 	100	%

OTC Convertible Note Hedge (2015)

19

 

	 	 	 	 	 
	 	 	Valuation
	Item:	 	Percentage:
	(J) Non-Callable Agency Debt having
a remaining maturity of not more
than one year. For purposes hereof,
“Non-Callable Agency Debt” means
fixed rate, non-callable,
non-amortizing U.S.
Dollar-denominated senior debt
securities of fixed maturity in book
entry form issued by the Federal
Home Loan Banks (including their
consolidated obligations issued
through the Office of Finance of the
Federal Home Loan Bank System)
(“FHLB”), Fannie Mae, the Federal
Home Loan Mortgage Corporation
(“Freddie Mac”) or the Federal Farm
Credit Banks (“FFCB”)

	 	 	99	%
	 
	 	 	 	 
	(K) Non-Callable Agency Discount
Notes having a remaining maturity of
not more than twelve months. For
purposes hereof, “Non-Callable
Agency Discount Notes” means
non-callable U.S. Dollar denominated
discount notes sold at a discount
from their principal amount payable
at maturity with an original
maturity of 360 days or less in book
entry form and issued by Fannie Mae,
Freddie Mac, FHLB or FFCB

	 	 	99	%
	 
	 	 	 	 
	(L) Callable Agency Debt having a
remaining maturity of not more than
one year. For purposes hereof,
“Callable Agency Debt” means
fixed-rate, callable non-amortizing
U.S. Dollar-denominated senior debt
securities in book entry form issued
by FHLB, Fannie Mae or Freddie Mac

	 	 	99	%
	 
	 	 	 	 
	(M) Negotiable debt obligations
issued by the U.S. Treasury
Department having a remaining
maturity of more than one year but
not more than ten years

	 	 	99	%
	 
	 	 	 	 
	(N) Non-Callable Agency Debt and
Callable Agency Debt having a
remaining maturity of more than one
year but not more than ten years

	 	 	98	%
	 
	 	 	 	 
	(O) Negotiable debt obligations
issued by the U.S. Treasury
Department having a remaining
maturity of more than ten years

	 	 	98	%
	 
	 	 	 	 
	(P) Non-Callable Agency Debt and
Callable Agency Debt having a
remaining maturity of more than ten
years

	 	 	97	%
	 
	 	 	 	 
	(Q) Corporate Debt having stable
ratings of AA or better by Standard
& Poor’s and Aa2 or better by
Moody’s having a remaining maturity
of less than 1 year or as otherwise
mutually agreed by the Parties and
listed in Attachment Q1 having a
remaining maturity of less than one
year

	 	 	97	%

OTC Convertible Note Hedge (2015)

20

 

	 	 	 	 	 
	 	 	
	 	 	Valuation
	Item:	 	Percentage:
	(R) Securities or other financial
obligations of the Issuer of the
Shares, including without
limitation, equity securities, debt
securities, convertible bonds,
derivatives contracts (other than
the OTC Warrant Transaction entered
into between Counterparty and Seller
as of the date hereof in respect of
Shares) and any other financial
instruments.

	 	 	100	%
	 
	 	 	 	 
	(S) Securities or other financial
obligations of corporations (other
than the Issuer of the Shares),
including without limitation, equity
securities, debt securities,
convertible bonds and any other
financial instruments.

	 	 	70	%

Governing Law. This Confirmation will be governed by, and construed in accordance with, the laws
of the State of New York.

Submission to Jurisdiction. Each party hereby irrevocably and unconditionally submits for itself
and its property in any legal action or proceeding by the other party against it relating to the
Transaction to which it is a party, or for recognition and enforcement of any judgment in respect
thereof, to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in
New York County, the courts of the United States of America for the Southern District of New York,
and appellate courts from any of the foregoing.

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 this
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 this Transaction, as applicable, by, among other
things, the mutual waivers and certifications provided herein.

Netting of Payments. The provisions of Section 2(c) of the Agreement shall not be
applicable to this Transaction.

Basic Representations. Section 3(a) of the Agreement is hereby amended by the deletion of
“and” at the end of Section 3(a)(iv); the substitution of a semicolon for the period at the
end of Section 3(a)(v) and the addition of Sections 3(a)(vi), as follows:

Eligible Contract Participant; Line of Business. Each party agrees and represents that it is an
“eligible contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as
amended (“CEA”), this Agreement and the Transaction thereunder are subject to individual
negotiation by the parties and have not been executed or traded on a “trading facility” as defined
in Section 1a(33) of the CEA, and it has entered into this Confirmation and this Transaction in
connection with its business or a line of business (including financial intermediation), or the
financing of its business.

Acknowledgements:

	(a)	 	The parties acknowledge and agree that there are no other representations, agreements or
other undertakings of the parties in relation to this Transaction, except as set forth in this
Confirmation and the Agreement.

OTC Convertible Note Hedge (2015)

21

 

	(b)	 	The parties hereto intend for:

	 	(i)	 	Seller to be a “financial institution” as defined in Section 101(22) of Title
11 of the United States Code (the “Bankruptcy
Code”) and this Transaction to be
a “securities contract” as defined in Section 741(7) of the Bankruptcy Code and a “swap
agreement” as defined in Section 101(53C) of the Bankruptcy Code, qualifying for the
protections of, among other sections, Sections 362(b)(6), 362 (b)(17), 546(e), 546(g),
555 and 560 of the Bankruptcy Code;
	 
	 	(ii)	 	a party’s right to liquidate this Transaction and to exercise any other
remedies upon the occurrence of any Event of Default under the Agreement with respect
to the other party to constitute a “contractual right” as defined in the Bankruptcy
Code;
	 
	 	(iii)	 	all payments for, under or in connection with this Transaction, all payments
for the Shares and the transfer of such Shares to constitute “settlement payments” as defined in the
Bankruptcy Code.

Amendment of Section 6(d)(ii). Section 6(d)(ii) of the Agreement is modified by deleting
the words “on the
day” in the second line thereof and substituting therefore “on the day that is three Local Business
Days after the day.” Section 6(d)(ii) is further modified by deleting the words “two Local
Business Days” in the fourth line thereof and substituting therefore “three Local Business Days.”

Consent to Recording. Each party consents to the recording of the telephone conversations of
trading and marketing personnel of the parties and their Affiliates in connection with this
Confirmation. To the extent that one party records telephone conversations (the “Recording Party”)
and the other party does not (the “Non-Recording  Party”), the Recording Party shall in the
event of any dispute, make a complete and unedited copy of such party’s tape of the entire day’s
conversations with the Non-Recording Party’s personnel available to the Non-Recording Party. The
Recording Party’s tapes may be used by either party in any forum in which a dispute is sought to be
resolved and the Recording Party will retain tapes for a consistent period of time in accordance
with the Recording Party’s policy unless one party notifies the other that a particular transaction
is under review and warrants further retention.

Disclosure. Each party hereby acknowledges and agrees that Seller has authorized Counterparty to
disclose this Transaction and any related hedging transaction between the parties if and to the
extent that Counterparty reasonably determines (after consultation with Seller) that such
disclosure is required by law or by the rules of the New York Stock Exchange or any securities
exchange. Notwithstanding the foregoing, effective from the date of commencement of discussions
concerning the Transaction, Counterparty and each of its employees, representatives, or other
agents may disclose to any and all persons, without limitation of any kind, the tax treatment and
tax structure of the Transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to Counterparty relating to such tax treatment and tax structure.

Severability. If any term, provision, covenant or condition of this Confirmation, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable in
whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Confirmation had been executed with the invalid
or unenforceable provision eliminated, so long as this Confirmation as so modified continues to
express, without material change, the original intentions of the parties as to the subject matter
of this Confirmation and the deletion of such portion of this Confirmation will not substantially
impair the respective benefits or expectations of parties to this Agreement; provided, however,
that this severability provision shall not be applicable if any provision of Section 2,
5, 6 or 13 of the Agreement (or any definition or provision in Section
14 to the extent that it relates to, or is used in or in connection with any such Section)
shall be so held to be invalid or unenforceable.

Affected Parties. For purposes of Section 6(e) of the Agreement, each party shall be
deemed to be an Affected Party in connection with Illegality and any Tax Event.

OTC Convertible Note Hedge (2015)

22

 

[Signatures follow on separate page]

OTC Convertible Note Hedge (2015)

23

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the
copy of this Confirmation enclosed for that purpose and returning it to us.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	MERRILL LYNCH INTERNATIONAL	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Brian Carroll	 	 
	 

	 	Name:
	 	 
Brian Carroll
	 	 
	 

	 	Title:	 	Authorized Signatory	 	 

Confirmed as of the date first above written:

MYLAN INC.

	 	 	 	 	 
	By:
	 	/s/ Brian Carroll 	 	 
	Name:

	 	 
 Brian Carroll
	 	 
	Title:
	 	Authorized Signatory	 	 

Acknowledged and agreed as to matters to the Agent:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

Solely in its capacity as Agent hereunder

	 	 	 	 	 
	By:
	 	/s/ Fran Jacobson	 	 
	Name:

	 	 
Fran Jacobson
	 	 
	Title:
	 	 V.P	 	 

 

 

EXHIBIT A

GUARANTEE OF MERRILL LYNCH & CO., INC.

     FOR VALUE RECEIVED, receipt of which is hereby acknowledged, MERRILL LYNCH & CO., INC., a
corporation duly organized and existing under the laws of the State of Delaware (“ML & Co.”),
hereby unconditionally guarantees to Mylan Inc. (the “Company”), the due and punctual payment of
any and all amounts payable by Merrill Lynch International, a company organized under the laws of
England and Wales (“ML”), under the terms of the Confirmation of OTC Convertible Note Hedge between
the Company and ML (ML as Seller), dated as of September 9, 2008, with respect to the Reference
Notes (as defined therein) of Company due 2015 (the “Confirmation”), including, in case of default,
interest on any amount due, when and as the same shall become due and payable, whether on the
scheduled payment dates, at maturity, upon declaration of termination or otherwise, according to
the terms thereof. In case of the failure of ML punctually to make any such payment, ML & Co.
hereby agrees to make such payment, or cause such payment to be made, promptly upon demand made by
the Company to ML & Co.; provided, however that delay by the Company in giving such demand shall in
no event affect ML & Co.’s obligations under this Guarantee. This Guarantee shall remain in full
force and effect or shall be reinstated (as the case may be) if at any time any payment guaranteed
hereunder, in whole or in part, is rescinded or must otherwise be returned by the Company upon the
insolvency, bankruptcy or reorganization of ML or otherwise, all as though such payment had not
been made.

     ML & Co. hereby agrees that its obligations hereunder constitute a guarantee of payment when
due and not of collection and that its obligations hereunder shall be unconditional, irrespective
of the validity, regularity or enforceability of the Confirmation; the absence of any action to
enforce the same; any waiver or consent by the Company concerning any provisions thereof; the
rendering of any judgment against ML or any action to enforce the same; or any other circumstances
that might otherwise constitute a legal or equitable discharge of a guarantor or a defense of a
guarantor. ML covenants that this guarantee will not be discharged except by complete payment of
the amounts payable under the Confirmation. This Guarantee shall continue to be effective if ML
merges or consolidates with or into another entity, loses its separate legal identity or ceases to
exist.

     ML & Co. shall not exercise any rights that it may acquire by way of subrogation as a result
of a payment by it under this Guarantee at any time when any of the obligations of ML shall have
become due and remain unpaid. Any amount paid to ML & Co. in violation of the preceding sentence
shall be held for the benefit of the Company and shall forthwith be paid to the Company to be
credited and applied to such obligations of ML then due and unpaid. Subject to the foregoing, upon
payment of all such obligations of ML, ML & Co. shall be subrogated to the rights of the Company
against ML, and the Company agrees to take at ML & Co.’s expense such steps as ML &Co. may
reasonably request to implement such subrogation.

     ML & Co. hereby waives diligence; presentment; protest; notice of protest, acceleration, and
dishonor; filing of claims with a court in the event of insolvency or bankruptcy of ML; all demands
whatsoever, except as noted in the first paragraph hereof; and any right to require a proceeding
first against ML.

     ML & Co. hereby certifies and warrants that this Guarantee constitutes the valid obligation of
ML & Co. and complies with all applicable laws.

     This Guarantee shall be governed by, and construed in accordance with, the laws of the State
of New York.

     This Guarantee becomes effective concurrent with the effectiveness of the Confirmation,
according to its terms.

 

 

IN WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in its corporate name by its
duly authorized representative.

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH & CO., INC.	 	 
	 
	 

	 	By:	 	/s/ Patricia Kropiewnicki	 	 
	 

	 	 	 	 

Name: Patricia Kropiewnicki
	 	 
	 

	 	 	 	Title: Designated Signature	 	 
	 

	 	 	 	Date: September 9, 2008EX-10.2

Exhibit 10.2

EXECUTION COPY

Confirmation of OTC Convertible Note Hedge

Date: September 9, 2008

To:
Mylan Inc. (“Counterparty”)

From:
Wells Fargo Bank, National Association (“Dealer”)

Dealer Reference:

Dear Sir / Madam:

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the above-referenced transaction entered into between Counterparty and Dealer on the
Trade Date specified below (the “Transaction”). This Confirmation constitutes a
“Confirmation” as referred to in the Agreement specified below.

     The definitions and provisions contained in the 2000 ISDA Definitions (the “Swap
Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions” and, together with the Swap Definitions, the “Definitions”), in each case
as published by the International Swaps and Derivatives Association, Inc. are incorporated into
this Confirmation. In the event of any inconsistency between the Swap Definitions and the Equity
Definitions, the Equity Definitions will govern, and in the event of any inconsistency between the
Definitions and this Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Share Option Transaction” for
purposes of the Equity Definitions and a “Swap Transaction” for the purposes of the Swap
Definitions.

     This Confirmation evidences a complete binding agreement between you and us as to the terms of
the Transaction to which this Confirmation relates. This Confirmation (notwithstanding anything to
the contrary herein), shall be subject to, and form part of, an agreement in the 1992 form of the
ISDA Master Agreement (the “Master Agreement”
or “Agreement”), as if we had
executed an agreement in such form, including a Credit Support Annex (Bilateral Form — New York
law version), (but without any Schedule and with the elections specified in the “ISDA Master
Agreement” Section of this Confirmation) on the Trade Date. In the event of any inconsistency
between the provisions of that Agreement and this Confirmation, this Confirmation will prevail for
the purpose of this Transaction. The parties hereby agree that the Transaction evidenced by this
Confirmation shall be the only Transaction subject to and governed by the Agreement.

     The parties acknowledge that this Confirmation is entered into on the date hereof with the
understanding that the provisions of the Note Indenture (as defined below) that are referred to
herein will conform to the descriptions thereof in the Offering Memorandum dated September 9, 2008
(the “Offering Memorandum”) relating to the Reference Notes (as defined below). The
parties agree that in the event of any inconsistency between the Note Indenture and the Offering
Memorandum, the parties will amend this Confirmation in good faith to preserve the intent of the
parties.

     The terms of the particular Transaction to which this Confirmation relates are as follows:

     General Terms:

	 	 	 
	Trade Date:

	 	September 9, 2008
	 
	 	 
	Effective Date:

	 	The date of issuance of the Reference Notes.
	 
	 	 
	Option Style:

	 	Modified American, as described under “Settlement Terms” below.
	 
	 	 
	Option Type:

	 	Call

 

 

	 	 	 
	Seller:

	 	Dealer
	 
	 	 
	Buyer:

	 	Counterparty
	 
	 	 
	Shares:

	 	The shares of Common Stock, $0.50 par value, of Counterparty (Security
Symbol: “MYL”).
	 
	 	 
	Number of Options:

	 	The number of Reference Notes in denominations of USD1,000 principal amount
issued by Counterparty on the closing date for the initial issuance of the
Reference Notes; provided that the Number of Options shall be automatically
increased as of the date of exercise by Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Goldman, Sachs & Co. of the Initial Purchasers’ (as
such term is defined in the Purchase Agreement) option to purchase
additional Reference Notes pursuant to Section 2(b) of the Purchase
Agreement related to the purchase and sale of the Reference Notes dated as
of September 9, 2008 among Counterparty and the Initial Purchasers (the
“Purchase Agreement”) by the number of Reference Notes in denominations of
USD1,000 principal amount issued pursuant to such exercise (such Reference
Notes, the “Additional Reference Notes”).
	 
	 	 
	Number of Shares:

	 	The product of the Number of Options and the Conversion Reference Rate (as
defined in the Note Indenture), but without regard to any adjustment to the
Conversion Reference Rate as a result of the Excluded Provisions of the Note
Indenture.
	 
	 	 
	Applicable Percentage:

	 	30% 
	 
	 	 
	Premium:

	 	$42,045,000; provided that if the Number of Options is increased pursuant to
the proviso to the definition of “Number of Options” above, an additional
Premium equal to the product of the number of Options by which the Number of
Options is so increased and $3.73359 shall be paid on the Additional Premium
Payment Date.
	 
	 	 
	Premium Payment Date:

	 	The date of issuance of the Reference Notes.
	 
	 	 
	Additional Premium Payment 

Date:

	 	The closing date for the purchase and sale of the Additional Reference Notes.
	 
	 	 
	Exchange:

	 	New York Stock Exchange
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Reference Notes:

	 	3.75% Cash Convertible Senior Notes due 2015 of Counterparty
	 
	 	 
	Note Indenture:

	 	The indenture, dated as of closing of the issuance of the Reference Notes,
between Counterparty and the guarantors named therein and The Bank of New
York, as trustee relating to the Reference Notes, as in effect on the date
of its execution. For the avoidance of doubt, references in this
Confirmation to the “Note Indenture” and to terms defined therein shall be
deemed to exclude any amendments to the Note Indenture that would have the
effect of altering the obligations of the parties hereunder unless the
parties agree otherwise in writing. Certain capitalized terms used but not
defined herein have the meanings assigned to them in the Note Indenture. As
used herein, the term “Description of Notes” refers to the section of the
Offering Memorandum bearing that designation.

2

 

	 	 	 
	Procedures for Exercise:
	 	 
	 
	 	 
	Potential Exercise Dates:

	 	Each Cash Conversion Trigger Date.
	 
	 	 
	Conversion Date:

	 	Each “cash conversion trigger date” for any Reference Note pursuant to the
terms of the Note Indenture occurring before the Expiration Date.
	 
	 	 
	Exercise on Conversion Dates:

	 	On each Conversion Date, a number of Options equal to the number of
Reference Notes in denominations of USD1,000 principal amount validly
submitted for conversion on such Conversion Date in accordance with the
terms of the Note Indenture shall be automatically exercised.
	 
	 	 
	Exercise Period:

	 	The period from and excluding the Effective Date to and including the
Expiration Date.
	 
	 	 
	Expiration Date:

	 	The earliest of (i) the stated maturity of the Reference Notes and (ii) the
first day on which none of such Reference Notes remain outstanding, whether
by virtue of conversion, issuer repurchase or otherwise.
	 
	 	 
	Multiple Exercise:

	 	Applicable, as provided above under “Exercise on Conversion Dates”.
	 
	 	 
	Minimum Number of Options:

	 	Zero
	 
	 	 
	Maximum Number of Options:

	 	Number of Options
	 
	 	 
	Automatic Exercise:

	 	As provided above under “Exercise on Conversion Dates”.
	 
	 	 
	Exercise Notice:

	 	Notwithstanding the exercise of any Options hereunder, Buyer shall be
entitled to receive the deliveries provided under “Settlement Terms” below
only if Buyer shall have delivered to Seller and the Calculation Agent a
written notice (“Exercise Notice”) prior to 5:00 PM, New York City time, on
the “Business Day”, as defined in the Note Indenture, prior to the first
Scheduled Trading Day of the Conversion Reference Period relating to the
Reference Notes converted on the Conversion Date occurring on the relevant
Exercise Date (such time, the "Notice Deadline”) of (i) the number of
Options being exercised, (ii) the first Scheduled Trading Day of the
Conversion Reference Period and (iii) the scheduled settlement date under
the Note Indenture for the Reference Notes converted on the Conversion Date
occurring on the Exercise Date for such exercise; provided that with respect
to Reference Notes converted during the period beginning on the 45th
“Scheduled Trading Day:” (as defined in the Note Indenture) prior to the
“Stated Maturity” (as defined in the Note Indenture) of the Reference Notes
and ending on the final date on which Reference Notes may be surrendered for
cash conversion, the related Exercise Notice need not contain the
information specified in clause (i) of this sentence and, in order to
exercise any Options hereunder, Buyer shall deliver to Seller prior to 5:00
p.m. New York City time on the Business Day prior to such Stated Maturity a
written notice (“Supplemental Exercise Notice”) setting forth the number of
Reference Notes converted during such period; provided
further that,
notwithstanding the foregoing, any Exercise Notice (and the related
automatic exercise of Options) shall be effective if given after the
relevant Notice Deadline but prior to 5:00 PM New York City time, on the
fifth Scheduled Trading Day following the Notice Deadline, in which event
the Calculation Agent shall adjust the Delivery Obligation (as defined
below) as appropriate to reflect the

3

 

	 	 	 
	 

	 	additional costs (including, but not
limited to, hedging mismatches and market losses) and reasonable expenses
incurred by Seller and Hedging Party or any of their respective affiliates
in connection with its hedging activities (including the unwinding of any
hedge position) as a result of Seller not having received such notice prior
to the applicable Notice Deadline.
	 
	 	 

	 	 	 	 	 
	Seller’s Telephone Number and
Telex and/or Facsimile Number
and Contact Details for
purpose of Giving Notice:

	 	To:
	 	Wells Fargo Bank, N.A.

550 California Street

14th Floor

San Francisco, CA 94104

	 
	 	 	 	 
	 

	 	Attn:
	 	Financial Products Documentation Group

Equities Trading Manager
	 
	 	 	 	 
	 

	 	Telephone:
	 	(415) 396-3962
	 
	 	 	 	 
	 

	 	Facsimile:
	 	(415) 646-9208
	 
	 	 	 	 
	 

	 	With a copy to:	 	 
	 
	 	 	 	 
	 

	 	Attn:
	 	Michele Beasley
	 
	 	 	 	 
	 

	 	Facsimile:
	 	(415) 646-9208

	 	 	 
	Settlement Terms:
	 	 
	 
	 	 
	Settlement Date:

	 	The settlement date specified in the Note Indenture for the payment of the
Conversion Reference Value upon the conversion of Reference Notes.
	 
	 	 
	Delivery Obligation:

	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity
Definitions, and subject to “Exercise Notice” above and “Condition to
Delivery Obligation” below, in respect of an Exercise Date occurring on a
Conversion Date, Seller will pay to Buyer on the related Settlement Date an
amount in cash equal to the product of (w) the Applicable Percentage, (x)
the number of Options exercised on such Exercise Date and (y) the sum, for
each Trading Day during the Conversion Reference Period for such Exercise
Date, of the excess, if any, of (i) the Daily Conversion Reference Value on
such Trading Day over (ii) the quotient of $1,000 divided by the number of
Trading Days in such Conversion Reference Period (such amount, the
“Convertible Obligation”); provided that the Delivery Obligation shall be
determined by excluding any amount that Buyer is obligated to pay to holders
of the Reference Notes as a direct or indirect result of any adjustments to
the Conversion Reference Rate pursuant to the Excluded Provisions of the
Note Indenture and, for avoidance of doubt, any interest payment or
distribution that Buyer is obligated to deliver in respect of References
Notes converted on such Conversion Date.
	 
	 	 
	Condition to Delivery
Obligation:

	 	Notwithstanding anything to the contrary in this Confirmation or the
Agreement, Dealer’s obligation to pay Counterparty the Delivery Obligation
in respect of any Exercise Date shall be conditioned upon Counterparty’s
payment of the Conversion Reference Value (as defined in the Note Indenture)
in respect of all the Reference Notes converted on the Conversion Date
occurring on such Exercise Date.
	 
	 	 
	Excluded Provisions:

	 	Those provisions of the Note Indenture that provide for discretionary or
voluntary adjustments of the conversion reference rate by the Issuer.

4

 

	 	 	 
	 

	 	Notwithstanding anything to the contrary herein or in the Equity
Definitions, in no event shall any adjustments in respect of any Potential
Adjustment Event or Extraordinary Event be made hereunder as a result of any
adjustments to the Conversion Reference Rate pursuant to the Excluded
Provisions of the Note Indenture.
	 
	 	 
	Conversion Reference Period:

	 	For any Exercise Date, the “conversion reference period” as defined in the
Note Indenture with respect to the Conversion Date occurring on such
Exercise Date.
	 
	 	 
	Other Applicable Provisions:

	 	To the extent Seller is obligated to deliver Shares hereunder, the
provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in Section 9.11 of the Equity
Definitions shall be modified by excluding any representations therein
relating to restrictions, obligations, limitations or requirements under
applicable securities laws as a result of the fact that Buyer is the issuer
of the Shares) and 9.12 of the Equity Definitions will be applicable as if
“Physical Settlement” applied to the Transaction.
	 
	 	 
	Adjustments:
	 	 
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment; provided that the terms of this Transaction
shall be adjusted in a manner consistent with adjustments of the Conversion
Reference Rate of the Reference Notes as provided in the Note Indenture;
provided that no adjustment in respect of any Potential Adjustment Event or
Extraordinary Event shall be made hereunder as a result of any adjustments
to the Conversion Reference Rate pursuant to the Excluded Provisions of the
Note Indenture.
	 
	 	 
	Potential Adjustment Event:

	 	Notwithstanding
Section 11.2(e) of the Equity Definitions, a “Potential
Adjustment Event” means, subject to the preceding paragraph, the occurrence
of an event or condition that would result in an adjustment of the
Conversion Reference Rate of the Reference Notes pursuant to the Note
Indenture.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Merger Events:

	 	Notwithstanding
Section 12.1(b) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition to which the sections of the
Note Indenture corresponding to “Rights of Holders to Require Cash
Conversion of Notes — Business Combinations” in the Description of Notes
apply.
	 
	 	 
	Consequences for Merger
Events:
	 	 
	 
	 	 
	          Share-for-Share:

	 	The Transaction will be adjusted in a manner corresponding to the
adjustments to the Reference Notes as provided in the Note Indenture.
	 
	 	 
	          Share-for-Other:

	 	The Transaction will be adjusted in a manner corresponding to the
adjustments to the Reference Notes as provided in the Note Indenture.
	 
	 	 
	          Share-for-Combined:

	 	The Transaction will be adjusted in a manner corresponding to the
adjustments to the Reference Notes as provided in the Note Indenture.
	 
	 	 
	Notice of Merger
Consideration:

	 	Upon the occurrence of a Merger Event that causes the Shares to be converted
into the right to receive more than a single type of consideration
(determined based in part upon any form of stockholder election), Buyer
shall reasonably

5

 

	 	 	 
	 

	 	promptly(but in any event on or prior to the effective date
of such Merger Event) notify the Calculation Agent of the weighted average
of the types and amounts of consideration received by the holders of Shares
entitled to receive cash, securities or other property or assets with
respect to or in exchange for such Shares in any Merger Event who
affirmatively make such an election.
	 
	 	 
	Tender Offer:

	 	Applicable, subject to “Consequences of Tender Offers” below.
Notwithstanding Section 12.1(d) of the Equity Definitions, “Tender Offer”
means the occurrence of any event or condition to which the provisions of
the Note Indenture governing adjustments to the Conversion Reference Rate in
connection with a “tender offer” or “exchange offer” apply.
	 
	 	 
	Consequences of Tender Offers:

	 	The Transaction will be adjusted in a manner corresponding to the
adjustments to the Reference Notes as provided in the Note Indenture.
	 
	 	 
	Nationalization, Insolvency
and Delisting:

	 	Cancellation and Payment (Calculation Agent Determination). In addition to
the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will
also constitute a Delisting if the Exchange is located in the United States
and the Shares are not immediately re-listed, re-traded or re-quoted on any
of the New York Stock Exchange, the American Stock Exchange, the NASDAQ
Global Market or the NASDAQ Global Select Market (or their respective
successors); if the Shares are immediately re-listed, re-traded or re-quoted
on any such exchange or quotation system, such exchange or quotation system
shall thereafter be deemed to be the Exchange.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable; provided that clause (Y) of Section 12.9(a)(ii) of the Equity
Definitions shall not be applicable insofar as any event described therein
results in an increased cost to Dealer of hedging the Transaction which
increased cost would have been included under Increased Cost of Hedging if
such provision were applicable; and provided further that Section
12.9(a)(ii) of the Equity Definitions shall be amended by inserting (i) at
the end of the fifth line thereof the following phrase: “(or GS)”, (ii) at
the end of clause (X) the following phrase: “(or, in the case of GS, a
Hedging Party Related Transaction)”; and (iii) in clause (Y), immediately
following the words “such Transaction”, the following phrase: “(or, in the
case of GS, a Hedging Party Related Transaction).”

	 	 	 
	 

	 	GS: Goldman Sachs International or any of its affiliates to which Goldman
Sachs International assigns its rights and obligations under a Hedging Party
Related Transaction.
	 
	 	 
	 

	 	Hedging Party Related Transaction: A transaction between GS and Dealer or
its affiliate evidenced by a confirmation that refers to the Transaction.

	 	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Hedging Disruption Event:

	 	Not Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Not Applicable
	 
	 	 
	Loss of Stock Borrow:

	 	Not Applicable

6

 

	 	 	 
	Increased Cost of Stock Borrow:

	 	Not Applicable
	 
	 	 
	Hedging Party:

	 	GS; provided that, notwithstanding anything herein to the contrary, from and
after the first day following the payment date in respect of any Early
Termination Date under the Hedging Party Related Transaction, (such day, the
“Related Transaction Termination Date”), Dealer shall be the Hedging Party.
	 
	 	 
	Determining Party:

	 	GS; provided that, notwithstanding anything herein to the contrary, from and
after the first day following any Related Transaction Termination Date,
Dealer shall be the Determining Party. GS shall make all calculations,
adjustments and determinations required pursuant to this transaction in a
commercially reasonable manner, and such calculations, adjustments and
determinations shall be binding absent manifest error.
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and
Acknowledgments Regarding
Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable

Additional Agreements, Representations and Covenants of Buyer, Etc.:

	1.	 	Buyer hereby represents and warrants to Seller and GS, on each day from the Trade Date to and
including the earlier of (i) October 7, 2008 and (ii) the date by which Seller is able to
initially complete a hedge of its position relating to this Transaction (including of any
increase in the Number of Options resulting from exercise of the over-allotment option
pursuant to Section 2(b) of the Purchase Agreement), that:

	 	a.	 	it will effect (and cause any “affiliated purchaser” (as defined in Rule 10b-18
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) to effect) any purchases, direct or indirect (including by means of any
cash-settled or other derivative instrument), of Shares or any security convertible
into or exchangeable or exercisable for Shares on any single day solely through either
Merrill Lynch, Pierce, Fenner & Smith Incorporated or Goldman, Sachs & Co. in a manner
that would not cause any purchases by Seller of its hedge in connection with this
Transaction not to comply with applicable securities laws; provided that this clause
(a) shall not apply to any transactions in Shares effected directly between Buyer and
its employees pursuant to an employee share incentive or benefit plan;
	 
	 	b.	 	it will not engage in, or be engaged in, any “distribution,” as such term is
defined in Regulation M promulgated under the Exchange Act, other than a distribution
meeting the requirements of the exceptions set forth in sections 101(b)(10) and
102(b)(7) of Regulation M (it being understood that Buyer makes no representation
pursuant to this clause in respect of any action or inaction taken by Seller or any
initial purchaser of the Reference Notes); and
	 
	 	c.	 	Buyer has publicly disclosed all material information necessary for Buyer to be
able to purchase or sell Shares in compliance with applicable federal securities laws.

	2.	 	Counterparty is not, and after giving effect to the Transaction contemplated hereby, will not
be, an “investment company” as such term is defined in the Investment Company Act of 1940, as
amended.

	3.	 	As of the Trade Date and each date on which a payment or delivery is made by Counterparty
hereunder, (i) the assets of Counterparty at their fair valuation exceed the liabilities of
Counterparty, including contingent liabilities; (ii) the capital of Counterparty is adequate
to conduct its business; and

7

 

(iii) Counterparty has the ability to pay its debts and other obligations as such obligations
mature and does not intend to, or believe that it will, incur debt or other obligations
beyond its ability to pay as such obligations mature.

	4.	 	The representations and warranties set forth in Section 1 of the Purchase Agreement (as
defined herein) are hereby deemed to be repeated to Dealer and GS as if set forth herein.

Additional Termination Events:

The occurrence of an Amendment Event or a Repayment Event shall be an Additional Termination Event
with respect to which the Transaction is the sole Affected Transaction, Counterparty is the sole
Affected Party and Hedging Party is the sole party entitled to designate an Early Termination Date;
provided that in the case of a Repayment Event, the Transaction shall be subject to termination
only in respect of the number of Reference Notes that cease to be outstanding in connection with or
as a result of such Repayment Event and, notwithstanding anything to the contrary in this
Agreement, no payments shall be required under this Agreement with respect to such number of
Reference Notes:

	1.	 	“Amendment Event” means that the Counterparty, without Hedging Party’s consent,
amends, modifies, supplements or obtains a waiver of (a) any term of the Note Indenture (as in
effect prior to such amendment, modification, supplement or waiver) or the Reference Notes
relating to the principal amount, coupon, maturity, repurchase obligation of the Counterparty
or redemption right of the Counterparty, (b) any material term relating to conversion of the
Reference Notes, including, without limitation, any changes to the conversion price,
conversion settlement dates or conversion conditions or (c) any term that would require
consent of the holders of 100% of the principal amount of the Reference Notes to amend.

	2.	 	“Repayment Event” means that (a) any Reference Notes are repurchased (whether in
connection with or as a result of a fundamental change or change of control, howsoever
defined, or for any other reason) by the Counterparty, (b) any Reference Notes are delivered
to the Counterparty in exchange for delivery of any property or assets of the Counterparty or
any of its subsidiaries (howsoever described), other than as a result of and in connection
with a Conversion Date, (c) any principal of any of the Reference Notes is repaid prior to the
Stated Maturity (as defined in the Note Indenture) (whether following acceleration of the
Reference Notes or otherwise), provided that no payments of cash made in respect of the
conversion of a Reference Note shall be deemed a payment of principal under this clause (c),
(d) any Reference Notes are exchanged by or for the benefit of the holders thereof for any
other securities of the Counterparty or any of its Affiliates (or any other property, or any
combination thereof) pursuant to any exchange offer or similar transaction (other than an
exchange of the Reference Notes for a new series of notes of the Counterparty that are
substantially identical Reference Notes other than in respect of restrictions on transfer) or
(e) any of the Reference Notes is surrendered by Counterparty to the trustee for cancellation,
other than registration of a transfer of such Reference Notes or as a result of and in
connection with a Conversion Date.

Initial Purchase Event:

If an Initial Purchase Event (as defined below) occurs, all of the respective rights and
obligations of Dealer and Counterparty hereunder shall be cancelled and terminated, except that
Counterparty shall pay to Dealer an amount in cash equal to the aggregate amount of costs and
expenses relating to the unwinding of Hedging Party’s hedging activities in respect of the
Transaction (including market losses incurred in reselling any Shares purchased by Hedging Party or
its affiliates in connection with such hedging activities). Following such payment, each party
agrees that all obligations with respect to the Transaction shall be deemed fully and finally
discharged.

“Initial Purchase Event” means that the transactions contemplated by the Purchase
Agreement shall fail to close for any reason other than in cases involving a breach of the
Purchase Agreement by the Initial Purchasers by the closing date for the offering of the
Reference Notes as specified in the Purchase Agreement.

8

 

Disposition of Hedge Shares:

Counterparty hereby agrees that if, in the reasonable judgment of either Seller or Hedging Party
based on advice of counsel, the Shares acquired by Hedging Party for the purpose of hedging its
obligations pursuant to the Transaction (the “Hedge Shares”) cannot be sold in the U.S.
public market by Seller without registration under the Securities Act, Counterparty shall, at its
election: (i) in order to allow Hedging Party to sell the Hedge Shares in a registered offering,
use commercially reasonable efforts to make available to Seller and Hedging Party 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 Seller and Hedging Party,
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 Seller and Hedging Party, (d) provide other customary opinions, certificates and
closing documents customary in form for registered offerings of equity securities and (e) afford
Seller and Hedging Party 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 either Seller or Hedging Party, in its sole reasonable discretion, is
not satisfied with access to due diligence materials, the results of its due diligence
investigation, or the procedures and documentation for the registered offering referred to above,
then clause (ii) or clause (iii) of this Section shall apply at the election of Counterparty; (ii)
in order to allow Hedging Party 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, by a publicly reporting company (if
Counterparty is a publicly reporting company at such time) to institutional purchasers, in form and
substance satisfactory to Dealer and Hedging Party, including reasonable and customary
representations, covenants, blue sky and other governmental filings and/or registrations,
indemnities to Seller and Hedging Party, due diligence rights (for Seller, Hedging Party or any
designated buyer of the Hedge Shares from Hedging Party), opinions and certificates and such other
documentation as is customary for private placements agreements, all reasonably acceptable to
Seller (in which case, the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary to compensate Hedging Party for any discount from the public market
price of the Shares (other than any discount in respect of commissions or fees payable to any third
party) incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge
Shares from Hedging Party at the VWAP Price on such Exchange Business Days, and in such amounts, as
requested by Hedging Party. “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
MYL.N <equity> VAP (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).

Repurchase Notices:

Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, promptly
give Seller and Calculation Agent a written notice of such repurchase (a “Repurchase
Notice”) on such day if following such repurchase, the Notice Percentage as determined on such
day is (i) greater than 6% and (ii) greater by 0.5% than the Notice Percentage included in the
immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice,
greater than the Notice Percentage as of the date hereof). In the event that Counterparty fails to
provide Seller or Calculation Agent with a Repurchase Notice on the day and in the manner specified
in this section, then Counterparty agrees to indemnify and hold harmless Seller and Hedging Party,
and their respective affiliates and their respective directors, officers, employees, agents and
controlling persons (Seller, Hedging Party and each such person being an “Indemnified
Party”) from and against any and all losses, claims, damages and liabilities (or actions in
respect thereof), joint or several, to which such Indemnified Party may become subject under
applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating
to or arising out of such failure. If for any reason the foregoing indemnification is unavailable
to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty
shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the
Indemnified Party as a result of such loss, claim, damage or liability. In addition, Counterparty
will reimburse any Indemnified Party for all reasonable and documented expenses (including
reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in
connection with the investigation of, preparation for or defense or settlement of any pending or
threatened claim or any action, suit or

9

 

proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether
or not such claim, action, suit or proceeding is initiated or brought by or on behalf of
Counterparty. This indemnity shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant to this
Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Seller or the
Hedging Party, as the case may be. Counterparty will not be liable under this Indemnity provision
to the extent that any loss, claim, damage, liability or expense is found in a final judgment by a
court to have resulted from Dealer’s gross negligence or willful misconduct. The “Notice
Percentage” as of any day is the fraction, expressed as a percentage, (i) the numerator of
which is the product of (a) the Applicable Percentage, (b) the number of outstanding Reference
Notes and (c) a number of Shares per Reference Note equal to the Conversion Reference Rate (as
defined in the Note Indenture) and (ii) the denominator of which is the number of Shares
outstanding on such day).

Conversion Reference Rate Adjustment Notices

Counterparty shall provide to Dealer and Calculation Agent written notice (such notice, a
“Conversion Reference Rate Adjustment Notice”) prior to the proposed effective date of any
transaction or event (a “Conversion Reference Rate Adjustment Event”) that would lead to an
increase in the Conversion Reference Rate (as such term is defined in the Note Indenture). Each
Conversion Reference Rate Adjustment Notice shall be delivered to Dealer and Calculation Agent at
or prior to the deadline for delivery of the related notices to the trustee under the Note
Indenture. In connection with the delivery of any Conversion Reference Rate Adjustment Notice to
Dealer, (x) Counterparty shall, concurrently with or prior to such delivery, publicly announce and
disclose the Conversion Reference Rate Adjustment Event or (y) Counterparty shall, concurrently
with such delivery, represent and warrant to Dealer and Calculation Agent that the information set
forth in such Conversion Reference Rate Adjustment Notice does not constitute material non-public
information with respect to Counterparty or the Shares. The Conversion Reference Rate Adjustment
Notice shall set forth the new, adjusted Conversion Reference Rate after giving effect to such
Conversion Reference Rate Adjustment Event (the “New Conversion Reference Rate”); provided
that if the New Conversion Reference Rate cannot be determined at the time of delivery of the
Conversion Reference Rate Adjustment Notice, Counterparty shall provide to Dealer written notice of
the New Conversion Reference Rate as promptly as practicable following the availability of
information required for its determination.

	 	 	 
	Compliance with Securities Laws:

	 	Each party hereto acknowledges that the offer and sale of the
Transaction to it is intended to be exempt from registration
under the Securities Act by virtue of Section 4(2) thereof.
Accordingly, Buyer represents and warrants to Seller and GS
that (i) it has the financial ability to bear the economic risk
of its investment in the Transaction and is able to bear a
total loss of its investment, (ii) it is an “accredited
investor” as that term is defined in Regulation D as
promulgated under the Securities Act and (iii) the disposition
of the Transaction is restricted under this Confirmation, the
Securities Act and state securities laws.
	 
	 	 
	 

	 	Buyer further represents:
	 
	 	 
	 

	 	(a) Buyer is not entering into this Transaction to create
actual or apparent trading activity in the Shares (or any
security convertible into or exchangeable for Shares) or to
raise or depress or otherwise manipulate the price of the
Shares (or any security convertible into or exchangeable for
Shares);
	 
	 	 
	 

	 	(b) Buyer acknowledges that as of the date hereof and without
limiting the generality of Section 13.1 of the Equity
Definitions, that Buyer is not relying on advice from either
Dealer or GS or their respective affiliates and neither Seller
nor GS (or any of its respective affiliates) is making any
representations or warranties with respect to the treatment of
the Transaction under FASB Statements 149, 150 or 157, EITF
Issue No. 00-19 (or any successor issue statements), under
FASB’s Liabilities & Equity Project, or any other

10

 

	 	 	 
	 

	 	accounting
standard or guidance.
	 
	 	 
	Account Details:

	 	Account for payments to Buyer: To be advised
	 
	 	 
	 

	 	Account for payment to Seller: To be advised
	 
	 	 
	Bankruptcy Rights:

	 	In the event of Buyer’s bankruptcy, Seller’s rights in
connection with this Transaction shall not exceed those rights
held by common shareholders. For the avoidance of doubt, the
parties acknowledge and agree that Seller’s rights with respect
to any other claim arising from this Transaction prior to
Buyer’s bankruptcy shall remain in full force and effect and
shall not be otherwise abridged or modified in connection
herewith.
	 
	 	 
	Set-Off:

	 	Each party waives any and all rights it may have to set-off,
whether arising under any agreement, applicable law or
otherwise.
	 
	 	 
	Collateral:

	 	Counterparty shall not be required to post collateral to Dealer.
	 
	 	 
	Transfer:

	 	Buyer shall have the right to assign its rights and delegate
its obligations hereunder with respect to any portion of this
Transaction, subject to Seller’s and GS’s consent, such consent
not to be unreasonably withheld or delayed; provided that such
assignment or transfer shall be subject to receipt by Seller
and GS of opinions and documents reasonably satisfactory to
Seller and GS and effected on terms reasonably satisfactory to
the Seller and GS with respect to any legal and regulatory
requirements relevant to the Seller; provided further that
Buyer shall not be released from its obligation to deliver any
Exercise Notice or its obligations pursuant to “Disposition of
Hedge Shares”, “Repurchase Notices” or “Conversion Reference
Rate Adjustment Notices” above, and Buyer shall be responsible
for all reasonable costs and expenses, including reasonable
counsel fees, incurred by Seller and GS in connection with any
such transfer or assignment. Seller may transfer any of its
rights or delegate its obligations under this Transaction with
the prior written consent of Buyer, which consent shall not be
unreasonably withheld or delayed. Buyer and Seller agree that
it shall not be unreasonable for Buyer to withhold consent to
any delegation of Seller’s obligations under this Transaction
to an entity the long-term U.S. dollar-denominated debt
obligations of which are rated below A by Standard & Poors’ and
below A2 by Moody’s.
	 
	 	 
	 

	 	If as determined in either Dealer’s or Hedging Party’s sole
discretion, at any time the Ownership Percentage (as defined
below) exceeds 8.5% or the receipt of such Shares would require
prior regulatory approval by a State or federal regulator and
such approval has not been received or the receipt of such
Shares would otherwise be prohibited under any State or federal
bank holding company or banking laws, regulations or regulatory
orders applicable to ownership of Shares (an “Excess Ownership
Position”) and Dealer, in its discretion or the discretion of
Hedging Party, is unable to effect a transfer or assignment of
this Transaction or the Hedging Party Related Transaction to a
third party after its commercially reasonable efforts on

pricing terms reasonably acceptable to Dealer or Hedging Party,
as the case may be, and within a time period reasonably acceptable to Dealer or Hedging Party (including without
limitation where such inability of Dealer or Hedging Party is
due to Buyer’s withholding or delaying of consent to such
transfer or assignment) such that an Excess Ownership Position
no longer exists, Dealer or Hedging Party may designate any
Scheduled Trading Day as an Early Termination Date with respect
to a portion (the “Terminated Portion”) of the Transaction,
such that an Excess Ownership Position no longer exists
following such partial termination. In the

11

 

	 	 	 
	 

	 	event that Dealer or Hedging Party so designates an Early Termination Date with
respect to a portion of the Transaction, a payment or delivery
shall be made pursuant to Section 6 of the Agreement as if (i)
an Early Termination Date had been designated in respect of a
Transaction having terms identical to the Terminated Portion of
the Transaction, (ii) Counterparty were the sole Affected Party
with respect to such partial termination, (iii) such portion of
the Transaction were the only Terminated Transaction and (iv)
Dealer were the party entitled to designate an Early
Termination Date pursuant to Section 6(b) of the Agreement and
to determine the amount payable pursuant to Section 6(e) of the
Agreement. The “Ownership Percentage” as of any day is the
fraction, expressed as a percentage, (A) the numerator of which
is the greater of (1) the sum of (x) the number of Shares that
Dealer and any of its affiliates subject to aggregation with
Dealer for purposes of the “beneficial ownership” test under
Section 13 of the Exchange Act and all persons who may form a
“group” (within the meaning of Rule 13d-5(b)(1) under the
Exchange Act but excluding any group formed for the affirmative
purpose of changing or influencing control of the Issuer) with
Dealer (collectively, “Dealer Group”) “beneficially own”
(within the meaning of Section 13 of the Exchange Act) without
duplication on such day and (y) the number of shares that
Hedging Party and any of its affiliates subject to aggregation
with Hedging Party for purposes of the “beneficial ownership”
test under Section 13 of the Exchange Act and all persons who
may form a “group” (within the meaning of Rule 13d-5(b)(1)
under the Exchange Act but excluding any group formed for the
affirmative purpose of changing or influencing control of the
Issuer) with Hedging Party (collectively, “Hedging Party
Group”) “beneficially own” (within the meaning of Section 13 of
the Exchange Act) without duplication on such day and (2) the
sum of (x) the number of shares that Dealer and all persons
comprising part of the same “acquiring person” as Dealer
“beneficially own”, as each such term is used in Counterparty’s
Rights Agreement between the Counterparty and American Stock
Transfer & Trust Company dated as of August 22, 1996, as
amended as of November 8, 1999, August 13, 2004, September 8,
2004, December 2, 2004 and December 19, 2005 (as so amended and
as may be subsequently amended, supplemented or replaced from
time to time, the “Rights Agreement”), on such day and (y) the
number of shares that Hedging Party and all persons comprising
part of the same “acquiring person” as Hedging Party
“beneficially own”, as each such term is used in the Rights
Agreement, on such day(B) the denominator of which is the
number of Shares outstanding
on such day.
	 
	 	 
	 

	 	Dealer may assign and delegate its rights and obligations under
this Transaction without the consent of the Buyer to any
affiliate of the Dealer (the “Assignee”) by notice specifying
the effective date of such transfer (“Transfer Effective Date”)
and including an (i) executed acceptance and assumption by the
Assignee of such rights and obligations and (ii) evidence
reasonably satisfactory to Counterparty that such obligations
of the Assignee are guaranteed by the Dealer to substantially
the same extent as Dealer’s obligations under this Transaction;
provided that (i) Counterparty will not, as a result of such
transfer, be required to pay to the Assignee an amount in
respect of an Indemnifiable Tax under Section 2(d)(i)(4) of the
Agreement (except in respect of interest under Section 2(e),
6(d)(ii), or 6(e)) greater than the amount in respect of which
Counterparty would have been required to pay to Dealer in the
absence of such transfer; and (ii) the Assignee will not, as a
result of such transfer, be required to withhold or deduct on
account of a Tax under Section 2(d)(i) of the Agreement (except
in respect of interest under Section 2(e), 6(d)(ii), or 6(e))
an amount in excess of that which Dealer would have been
required to withhold or deduct in the absence of such transfer,
unless the Assignee would be required to make additional
payments pursuant to Section 2(d)(i)(4) of the Agreement

12

 

	 	 	 
	 

	 	corresponding to such excess.
	 
	 	 
	 

	 	On the Transfer Effective Date, (a) Dealer shall be released
from all obligations and liabilities arising under this
Transaction; and (b) the assigned and delegated rights and
obligations under this Transaction shall cease to be a
Transaction under the Agreement and shall be deemed to be a
Transaction under an ISDA form of Master Agreement
(Multicurrency-Cross Border) and Schedule substantially in the
form of the Agreement but amended to reflect the name of the
Assignee and the address for notices and any amended
representations under Part 2 of the Agreement as may be
specified in the notice of transfer.
	 
	 	 
	Right to Extend:

	 	The Calculation Agent may postpone any Exercise Date or
Settlement Date or any other date of valuation or delivery by
Dealer, with respect to some or all of the relevant Options (in
which event the Calculation Agent shall make appropriate
adjustments to the Delivery Obligation), if Calculation Agent
determines, in its reasonable discretion, that such extension
is reasonably necessary or appropriate to preserve Hedging
Party’s hedging or hedge unwind activity hereunder in light of
existing liquidity conditions in the cash market, the stock
borrow market or other relevant market or to enable Hedging
Party to effect purchases of Shares in connection with its
hedging, hedge unwind or settlement activity hereunder in a
manner that would, if Hedging Party were Counterparty or an
affiliated purchaser of Counterparty, be in compliance with
applicable legal, regulatory or self-regulatory requirements,
or with related policies and procedures applicable to Hedging
Party.

ISDA Master Agreement:

With respect to the Agreement, Seller and Counterparty each agree as follows (including for the
benefit of GS):

“Specified Entity” means in relation to Seller and in relation to Counterparty for purposes
of this Transaction: Not applicable.

The provisions of “Default under Specified Transaction” as set forth in Section 5(a)(v) of
the Agreement shall not apply to Dealer or Counterparty.

“Specified Transaction” has the meaning assigned to such term in Section 14 of the
Agreement.

The “Cross Default” provisions of Section 5(a)(vi) of the Agreement will apply to
Counterparty; provided that the text of Section 5(a)(vi) following the words “occurrence or
existence of” in the second line thereof through the end of such Section 5(a)(vi) shall be replaced
in its entirety by the following:

one or more defaults under any of the agreements, indentures or instruments under which
Issuer or any “significant subsidiary” (as such term is defined in Regulation S-X
promulgated under the Securities Act of 1933) of Issuer then has outstanding indebtedness in
excess of $50 million, individually or in the aggregate, and either (a) such default results
from the failure to pay such indebtedness at its stated final maturity and such default has
not been cured or the indebtedness repaid in full within ten days of the default or (b) such
default or defaults have resulted in the acceleration of the maturity of such indebtedness
and such acceleration has not been rescinded or such indebtedness repaid in full within ten
days of the acceleration;

The “Credit Event Upon Merger” provisions of Section 5(b)(v) of the Agreement will
not apply to Seller and will not apply to Counterparty.

The “Automatic Early Termination” provision of Section 6(a) of the Agreement will
not apply to Seller or to Counterparty.

13

 

“Termination Currency” means USD.

Payments on Early Termination. For the purpose of Section 6(e) of the Agreement: (i) Loss
shall apply; and (ii) the Second Method shall apply.

Tax Representations.

	(a)	 	Payer Representations. For the purpose of Section 3(e) of the Agreement, each party
represents to the other party that it is not required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the other
party under the Agreement. In making this representation, each party may rely on (i) the
accuracy of any representations made by the other party pursuant to Section 3(f) of the
Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
the Agreement, and the accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of the
agreement of the other party contained in Section 4(d) of the Agreement; provided that it will
not be a breach of this representation where reliance is placed on clause (ii) above and the
other party does not deliver a form or document under Section 4(a)(iii) of the Agreement by
reason of material prejudice to its legal or commercial position.

	(b)	 	Payee Representations. For the purpose of Section 3(f) of the Agreement, each party makes
the following representations to the other party:

	 	(i)	 	Dealer represents that it is a national banking association organized under the
laws of the United States.
	 
	 	(ii)	 	Counterparty represents that it is a corporation incorporated in Pennsylvania.]

Delivery Requirements. For the purpose of Sections 4(a)(i) and (ii) of the
Agreement, each party agrees to deliver the following documents:

	(a)	 	Tax forms, documents or certificates to be delivered are:
	 
	 	 	Dealer agrees to complete (accurately and in a manner reasonably satisfactory to
Counterparty), execute, and deliver to Counterparty, United States Internal Revenue Service
Form W-9 and all required attachments, or any successor of such form(s): (i) before the
first payment date under this agreement; (ii) promptly upon reasonable demand by
Counterparty; and (iii) promptly upon learning that any such Form previously provided by
Dealer has become obsolete or incorrect.
	 
	 	 	Counterparty agrees to complete (accurately and in a manner reasonably satisfactory to
Dealer), execute, and deliver to Dealer, United States Internal Revenue Service Form W-9 or
W-8 BEN, or any successor of such form(s): (i) before the first payment date under this
agreement; (ii) promptly upon reasonable demand by Dealer; and (iii) promptly upon learning
that any such form(s) previously provided by Counterparty has become obsolete or incorrect.
	 
	(b)	 	Other documents to be delivered (to opposite party; also to GS where indicated):

	 	 	 	 	 	 	 
	Party Required to	 	Document Required	 	 	 	Covered by Section
	Deliver Document	 	to be Delivered	 	When Required	 	3(d) Representation
	Counterparty and
Dealer

	 	Evidence of the
authority and true
signatures of each
official or
representative
signing this
Confirmation (also
to GS)
	 	Upon or before
execution and
delivery of this
Confirmation
	 	Yes

14

 

	 	 	 	 	 	 	 
	Party Required to	 	Document Required	 	 	 	Covered by Section
	Deliver Document	 	to be Delivered	 	When Required	 	3(d) Representation
	Counterparty

	 	Certified copy of
the resolution of
the Board of
Directors or
equivalent document
authorizing the
execution and
delivery of this
Confirmation and
such other
certificates as
Seller shall
reasonably request
(also to GS)
	 	Upon or before
execution and
delivery of this
Confirmation
	 	Yes
	 
	 	 	 	 	 	 
	Counterparty

	 	An opinion of
counsel, dated as
of the Effective
Date and reasonably
acceptable to
Dealer in form and
substance, with
respect to the
matters set forth
in Section 3(a) of
the Agreement (also
to GS, as
reasonably
acceptable to GS in
form and
substance).
	 	Upon or before the

Effective Date
	 	No

Additional Notice Requirements. Counterparty hereby agrees to promptly deliver to Seller and
Calculation Agent a copy of all notices and other communications required or permitted to be given
to the holders of any Reference Notes pursuant to the terms of the Note Indenture on the dates so
required or permitted in the Note Indenture and all other notices given and other communications
made by Counterparty in respect of the Reference Notes to holders of any Reference Notes.
Counterparty further covenants to Seller and Calculation Agent that it shall promptly notify Seller
and Calculation Agent of each Conversion Date, Amendment Event (including in such notice a detailed
description of any such amendment) and Repayment Event (identifying in such notice the nature of
such Repayment Event and the principal amount at maturity of Reference Notes being paid).

Addresses for Notices. For the purpose of Section 12(a) of the Agreement:

Address for notices or communications to Seller for all purposes:

	 	 	 	 	 
	 

	 	To:
	 	Wells Fargo Bank, N.A.
	 

	 	 	 	550 California Street
	 

	 	 	 	14th Floor
	 

	 	 	 	San Francisco, CA 94104
	 
	 	 	 	 
	 

	 	Attn:
	 	Financial Products Documentation Group
	 

	 	 	 	Equities Trading Manager
	 
	 	 	 	 
	 

	 	Telephone:
	 	(415) 396-3962
	 
	 	 	 	 
	 

	 	Facsimile:
	 	(415) 646-9208
	 
	 	 	 	 
	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	Attn:
	 	Michele Beasley
	 
	 	 	 	 
	 

	 	Facsimile:
	 	(415) 646-9208

Address for notices or communications to Counterparty for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	Mylan Inc.
	 

	 	 	 	1500 Corporate Drive
	 

	 	 	 	Canonsburg, PA 15317
	 
	 	 	 	 
	 

	 	Attention:
	 	Edward J. Borkowski, Chief Financial Officer
	 

	 	Facsimile No.:
	 	(724) 514 1871
	 

	 	Telephone No.:
	 	(724) 514 1870

15

 

Address for notices or communications to the Calculation Agent:

	 	 	 	 	 
	 	 	All communications relating to the Transaction or the Agreement shall be transmitted
exclusively:
	 
	 	 	 	 
	 

	 	Through:
	 	Goldman, Sachs & Co.
	 

	 	 	 	One New York Plaza
	 

	 	 	 	New York, NY 10004
	 

	 	Attn:
	 	Equity Operations: Options and Derivatives
	 

	 	Telephone:
	 	(212) 902-1981
	 

	 	Facsimile:
	 	(212) 428-1980/1983
	 
	 	 	 	 
	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	Attn:
	 	Serge Marquie
	 

	 	 	 	Equity Capital Markets
	 

	 	Telephone:
	 	(212) 902-9779
	 

	 	Facsimile:
	 	(212) 902-3000

	 	 	 
	Multibranch Party.

	 	For the purpose of
Section 10(c) of the Agreement: Neither Seller nor Counterparty is a Multibranch Party.
	 
	 	 
	Calculation Agent.

	 	The Calculation Agent is GS; provided that,
notwithstanding anything herein to the contrary, from
and after the first day following any Related
Transaction Termination Date, Dealer shall be the
Calculation Agent. Upon the request of either party,
the Calculation Agent (or, in the case of a
determination made by a party (including a party acting
as Hedging Party or Determining Party), such party)
shall, no later than the 5th Business Day following
such request, provide the parties with a statement
showing, in reasonable detail, the computations
(including any relevant quotations) by which it has
determined any amount payable or deliverable under, or
any adjustment to the terms of, this Transaction;
provided that in no event shall Calculation Agent be
required to disclose its proprietary models or other
proprietary information. All judgments, determinations
and calculations hereunder by the Calculation Agent or
by a party hereto shall be performed in good faith and
in a commercially reasonable manner.

Credit Support Document.

Seller: collateral account control agreement to be entered into between Counterparty, Dealer and an
affiliate of Dealer reasonably acceptable to Counterparty, (“Collateral Account Control
Agreement”) prior to any required delivery of collateral hereunder. The Collateral Account
Agreement shall be in customary form and reasonably acceptable to the Company

Counterparty: Not Applicable

Credit Support Provider.

With respect to Seller: Not Applicable.

With respect to Counterparty: Not Applicable.

Collateral Provisions

     The following provisions set forth the terms and conditions of the collateral delivery
obligations of Dealer applicable to the Transaction pursuant to the Credit Support Annex.

16

 

	 	 	 
	Pledgor:

	 	Dealer
	 
	 	 
	Secured Party:

	 	Counterparty
	 
	 	 
	Collateral:

	 	Dealer will pledge Eligible Collateral in an amount and
subject to the terms as defined below.
	 
	 	 
	Credit Support Amount:

	 	As specified in Paragraph 3 of the Credit Support Annex.
	 
	 	 
	Valuation Date (for
purposes of the CSA):

	 	Every Monday during the term of the Transaction
	 
	 	 
	Valuation Time:

	 	5:00 PM EST
	 
	 	 
	Notification Time:

	 	10 a.m. on the next Local Business Day after the relevant
Valuation Date
	 
	 	 
	Valuation Agent:

	 	Dealer
	 
	 	 
	Independent Amount:

	 	$0 
	 
	 	 
	Threshold:

	 	Infinity; provided that the Threshold shall be
$50,000,000 if, and for so long as, the long-term U.S.
dollar-denominated debt obligations of Dealer’s Credit
Support Provider are rated below BBB- by Standard &
Poors’ and below Baa3 by Moody’s.
	 
	 	 
	Minimum Transfer Amount:

	 	$500,000 
	 
	 	 
	Custodian:

	 	Dealer; or an affiliate of Dealer or an unaffiliated
financial institution, in either case reasonably
acceptable to Counterparty.
	 
	 	 
	Use of Posted Collateral:

	 	The provisions of Paragraph 6(c) of the Credit Support
Annex will not apply.
	 
	 	 
	Specified Condition

	 	For purposes of Paragraph 4(a) of the Credit Support
Annex, the following Termination Events will be a
Specified Condition with respect to the party that is the
Affected Party for such Termination Event: Illegality,
Tax Event, Tax Event Upon Merger, Credit Event Upon
Merger, Additional Termination Events. For purposes of
Paragraphs 8(a) and 8(b) of the Credit Support Annex, the
following Termination Events will be a Specified
Condition with respect to the party that is the Affected
Party for such Termination Event: Credit Event Upon
Merger, Additional Termination Events.
	 
	 	 
	Eligible Collateral:

	 	The following Items will qualify as “Eligible Collateral”:

	 	 	 	 	 
	 	 	Valuation
	Item:	 	Percentage:
	(A) Cash

	 	 	100	%
	 
	 	 	 	 
	(B) Negotiable debt obligations issued by the U.S. Treasury
Department having a remaining maturity of not more than one year

	 	 	100	%

17

 

	 	 	 	 	 
	 	 	Valuation
	Item:	 	Percentage:
	(C) Securities with maturities of 90 days or less from the date of
acquisition issued by the U.S., Switzerland, Canada, England or a
member state of the European Union (excluding Greece, Italy and any
Countries with sovereign debt ratings below Aa1/AA+) or by an
instrumentality or agency of the U.S. government, Switzerland,
Canada, England or a member state of the European Union (excluding
Greece, Italy and any Countries with sovereign debt ratings below
Aa1/AA+) having the same credit rating as its government 100% $50
million maximum per non-U.S. country

	 	 	100	%
	 
	 	 	 	 
	(D) Certificates of deposit and eurodollar time deposits with
maturities of 90 days or less from the date of acquisition and
overnight bank deposits of any commercial bank having stable ratings
of at least A/A-1 by S&P and A2/P-1 by Moody’s

	 	 	100	%
	 
	 	 	 	 
	(E) Repurchase obligations of any commercial bank satisfying the
requirements of clause (D) of this definition, having a term of not
more than seven days with respect to securities issued by the U.S.
Government

	 	 	100	%
	 
	 	 	 	 
	(F) Commercial paper of a corporate issuer having stable ratings of
at least A/A- 1 by S&P and A2/P-1 by Moody’s and maturing within 90
days after the day of acquisition

	 	 	100	%
	 
	 	 	 	 
	(G) Securities with maturities of 90 days or less from the date of
acquisition issued by any state, commonwealth or territory of the
U.S., by any political subdivision or taxing authority of any such
state, commonwealth or territory, the securities of which state,
commonwealth, territory, political subdivision or taxing authority
(as the case may be) having stable ratings of at least A by S&P and
A2 by Moody’s

	 	 	100	%
	 
	 	 	 	 
	(H) Securities with maturities of 90 days or less from the date of
acquisition backed by standby letters of credit issued by any Lender
or any commercial bank satisfying the requirements of clause (D) of
this definition

	 	 	100	%
	 
	 	 	 	 
	(I) Shares of money market mutual or similar funds that conform with
Rule 2a-7 of the Investment Companies Act of 1940 and having a
minimum asset size of $3 billion which invest exclusively in assets
satisfying the requirements of clauses (C) through (H) of this
definition

	 	 	100	%
	 
	 	 	 	 
	(J) Non-Callable Agency Debt having a remaining maturity of not more
than one year. For purposes hereof, “Non-Callable Agency Debt”
means
fixed rate, non-callable, non-amortizing U.S. Dollar-denominated
senior debt securities of fixed maturity in book entry form issued by
the Federal Home Loan Banks (including their consolidated obligations
issued through the Office of Finance of the Federal Home Loan Bank
System) (“FHLB”), Fannie Mae, the Federal Home Loan Mortgage
Corporation (“Freddie Mac”) or the Federal Farm Credit Banks
(“FFCB”)

	 	 	99	%
	 
	 	 	 	 
	(K) Non-Callable Agency Discount Notes having a remaining maturity of
not more than twelve months. For purposes hereof, “Non-Callable
Agency Discount Notes” means non-callable U.S. Dollar denominated
discount notes sold at a discount from their principal amount payable
at maturity with an original maturity of 360 days or less in book
entry form and issued by Fannie Mae, Freddie Mac, FHLB or FFCB

	 	 	99	%
	 
	 	 	 	 
	(L) Callable Agency Debt having a remaining maturity of not more than
one year. For purposes hereof, “Callable Agency Debt” means
fixed-rate, callable non-amortizing U.S. Dollar-denominated senior
debt securities in book entry form issued by FHLB, Fannie Mae or
Freddie Mac

	 	 	99	%
	 
	 	 	 	 
	(M) Negotiable debt obligations issued by the U.S. Treasury
Department having a remaining maturity of more than one year but not
more than ten years

	 	 	99	%

18

 

	 	 	 	 	 
	 	 	Valuation
	Item:	 	Percentage:
	(N) Non-Callable Agency Debt and Callable Agency Debt having a
remaining maturity of more than one year but not more than ten years

	 	 	98	%
	 
	 	 	 	 
	(O) Negotiable debt obligations issued by the U.S. Treasury
Department having a remaining maturity of more than ten years

	 	 	98	%
	 
	 	 	 	 
	(P) Non-Callable Agency Debt and Callable Agency Debt having a
remaining maturity of more than ten years

	 	 	97	%
	 
	 	 	 	 
	(Q) Corporate Debt having stable ratings of AA or better by Standard
& Poor’s and Aa2 or better by Moody’s having a remaining maturity of
less than 1 year or as otherwise mutually agreed by the Parties and
listed in Attachment Q1 having a remaining maturity of less than one
year

	 	 	97	%
	 
	 	 	 	 
	(R) Securities or other financial obligations of the Issuer of the
Shares, including without limitation, equity securities, debt
securities, convertible bonds, derivatives contracts (other than the
OTC Warrant Transaction entered into between Counterparty and Seller
as of the date hereof in respect of Shares) and any other financial
instruments.

	 	 	100	%
	 
	 	 	 	 
	(S) Securities or other financial obligations of corporations (other
than the Issuer of the Shares), including without limitation, equity
securities, debt securities, convertible bonds and any other
financial instruments.

	 	 	70	%

Governing Law. This Confirmation will be governed by, and construed in accordance with, the laws
of the State of New York.

Third Party Beneficiary. GS shall be the third party beneficiary of Counterparty’s
representations, warranties, agreements, indemnities and other obligations hereunder and will have
a right to directly enforce those obligations against Counterparty.

Submission to Jurisdiction. Each party hereby irrevocably and unconditionally submits for itself
and its property in any legal action or proceeding by the other party against it relating to the
Transaction to which it is a party, or for recognition and enforcement of any judgment in respect
thereof, to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in
New York County, the courts of the United States of America for the Southern District of New York,
and appellate courts from any of the foregoing.

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 this
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 this Transaction, as applicable, by, among other
things, the mutual waivers and certifications provided herein.

Netting of Payments. The provisions of Section 2(c) of the Agreement shall not be
applicable to this Transaction.

Basic Representations. Section 3(a) of the Agreement is hereby amended by the deletion of
“and” at the end of Section 3(a)(iv); the substitution of a semicolon for the period at the
end of Section 3(a)(v) and the addition of Sections 3(a)(vi), as follows:

Eligible Contract Participant; Line of Business. Each party agrees and represents that it is an
“eligible contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as
amended (“CEA”), this

19

 

Agreement and the Transaction thereunder are subject to individual negotiation by the parties and
have not been executed or traded on a “trading facility” as defined in Section 1a(33) of the CEA,
and it has entered into this Confirmation and this Transaction in connection with its business or a
line of business (including financial intermediation), or the financing of its business.

Acknowledgements:

	(a)	 	The parties acknowledge and agree that there are no other representations, agreements or
other undertakings of the parties in relation to this Transaction, except as set forth in this
Confirmation and the Agreement.

	(b)	 	The parties hereto intend for:

	 	(i)	 	Seller to be a “financial institution” as defined in Section 101(22) of Title
11 of the United States Code (the “Bankruptcy
Code”) and this Transaction to be
a “securities contract” as defined in Section 741(7) of the Bankruptcy Code and a “swap
agreement” as defined in Section 101(53C) of the Bankruptcy Code, qualifying for the
protections of, among other sections, Sections 362(b)(6), 362 (b)(17), 546(e), 546(g),
555 and 560 of the Bankruptcy Code;
	 
	 	(ii)	 	a party’s right to liquidate this Transaction and to exercise any other
remedies upon the occurrence of any Event of Default under the Agreement with respect
to the other party to constitute a “contractual right” as defined in the Bankruptcy
Code;
	 
	 	(iii)	 	all payments for, under or in connection with this Transaction, all payments
for the Shares and the
transfer of such Shares to constitute “settlement payments” as defined in the
Bankruptcy Code.

Amendment of Section 6(d)(ii). Section 6(d)(ii) of the Agreement is modified by deleting
the words “on the day” in the second line thereof and substituting therefore “on the day that is
three Local Business Days after the day.” Section 6(d)(ii) is further modified by deleting
the words “two Local Business Days” in the fourth line thereof and substituting therefore “three
Local Business Days.”

Consent to Recording. Each party consents to the recording of the telephone conversations of
trading and marketing personnel of the parties and their Affiliates in connection with this
Confirmation. To the extent that one party records telephone conversations (the “Recording
Party”) and the other party does not (the “Non-Recording Party”), the Recording Party
shall in the event of any dispute, make a complete and unedited copy of such party’s tape of the
entire day’s conversations with the Non-Recording Party’s personnel available to the Non-Recording
Party. The Recording Party’s tapes may be used by either party in any forum in which a dispute is
sought to be resolved and the Recording Party will retain tapes for a consistent period of time in
accordance with the Recording Party’s policy unless one party notifies the other that a particular
transaction is under review and warrants further retention.

Disclosure. Each party hereby acknowledges and agrees that Seller has authorized Counterparty to
disclose this Transaction and any related hedging transaction between the parties if and to the
extent that Counterparty reasonably determines (after consultation with Seller) that such
disclosure is required by law or by the rules of the New York Stock Exchange or any securities
exchange. Notwithstanding the foregoing, effective from the date of commencement of discussions
concerning the Transaction, Counterparty and each of its employees, representatives, or other
agents may disclose to any and all persons, without limitation of any kind, the tax treatment and
tax structure of the Transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to Counterparty relating to such tax treatment and tax structure.

Severability. If any term, provision, covenant or condition of this Confirmation, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable in
whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Confirmation had been executed with the invalid
or unenforceable provision eliminated, so long as this Confirmation as so modified continues to
express, without material change, the original intentions of the parties as to the subject matter
of this

20

 

Confirmation and the deletion of such portion of this Confirmation will not substantially impair
the respective benefits or expectations of parties to this Agreement; provided, however,
that this severability provision shall not be applicable if any provision of Section 2,
5, 6 or 13 of the Agreement (or any definition or provision in Section
14 to the extent that it relates to, or is used in or in connection with any such Section)
shall be so held to be invalid or unenforceable.

Affected Parties. For purposes of Section 6(e) of the Agreement, each party shall be deemed
to be an Affected Party in connection with Illegality and any Tax Event.

[Signatures follow on separate page]

21

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the
copy of this Confirmation enclosed for that purpose and returning it to us.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Authorized Signatory
	 

	 	 
Authorized Signatory

Confirmed as of the date first above written:

	 	 	 	 	 
	MYLAN INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Brian Byala	 	 
	Name:

	 	 

Brian Byala	 	 
	Title:
	 	Authorized Signatory	 	 

OTC Convertible Note Hedge (2015)

2

 

EXHIBIT A

[Reserved]

OTC Convertible Note Hedge (2015)

3

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