Document:

Confirmation of Convertible Bond Hedge Transaction

 Exhibit 10.1 
 EXECUTION COPY 
 Opening Transaction 
  

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

London E14 4QJ
 England

		
	Re:	 	Convertible Bond Hedge Transaction
		
	Ref. No:	 	[Insert Reference Number]
		
	Date: 	 	March 20, 2007

  

 Dear Sir(s): 
 The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of
the above-referenced transaction entered into on the Trade Date specified below (the “Transaction”) between Credit Suisse International (“Dealer”) represented by Credit Suisse, New York branch
(“Agent”) as its agent, and ViroPharma Incorporated (“Counterparty”). This communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. 
 1. This Confirmation is subject to, and incorporates, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the
“2000 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2000 Definitions, the “Definitions”), in each
case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern. Certain defined
terms used herein have the meanings assigned to them in the First Supplemental Indenture to be dated as of March 26, 2007 between Counterparty and Wilmington Trust Company, as trustee (the “Indenture”) relating to the
USD225,000,000 principal amount of 2.00% convertible senior notes due 2017 (the “Convertible Notes”). In the event of any inconsistency between the terms defined in the Indenture and this Confirmation, this Confirmation shall
govern. For the avoidance of doubt, (i) the Transaction shall be the only transaction under the Agreement and (ii) references herein to sections of the Indenture are based on the draft of the Indenture most recently reviewed by the parties
at the time of execution of this Confirmation. If any relevant sections of the Indenture are changed, added or renumbered between the execution of this Confirmation and the execution of the Indenture, the parties will amend this Confirmation in good
faith to preserve the economic intent of the parties. The parties further acknowledge that references to the Indenture herein are references to the Indenture as in effect on the date of its execution and if the Indenture is amended following its
execution, any such amendment will be disregarded for purposes of this Confirmation unless the parties agree otherwise in writing. The Transaction is subject to early unwind if the closing of the Convertible Notes is not consummated for any reason,
as set forth below in Section 8(m). 
 Each party is hereby advised, and each such party acknowledges, that the other party has engaged
in, or refrained from engaging in, substantial financial transactions and has taken other material actions in 

 
reliance upon the parties’ entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below. 
 This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as to the terms of the Transaction to which this
Confirmation relates. This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement as if Dealer and Counterparty had executed an agreement in such form on the date hereof (but
without any Schedule except for (i) the election of Loss and Second Method and US Dollars (“USD”) as the Termination Currency, (ii) the replacement of the word “third” in the last line of Section 5(a)(i)
with the word “first”, and (iii) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to Counterparty with a “Threshold Amount” of USD 10 million). 
 All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein. In the
event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern. 
 2. The
Transaction constitutes a Share Option Transaction for purposes of the Equity Definitions. The terms of the particular Transaction to which this Confirmation relates are as follows: 
 General Terms: 
  

			
	Trade Date:	 	March 20, 2007
		
	Effective Date:	 	March 26, 2007
		
	Option Style:	 	Modified American, as described under “Procedures for Exercise” below.
		
	Option Type:	 	Call
		
	Seller:	 	Dealer
		
	Buyer:	 	Counterparty
		
	Shares:	 	The Common Stock of Counterparty, par value USD0.002 per share (Ticker Symbol: “VPHM”).
		
	Number of Options:	 	The number of Convertible Notes in denominations of USD1,000 principal amount issued by Counterparty on the closing date for the initial issuance of the Convertible Notes; provided that
the Number of Options shall be automatically increased as of the date of exercise by Goldman, Sachs & Co. (“GS&Co.”), as representative of the Underwriters (as defined in the Underwriting Agreement), of their option pursuant
to Section 2 of the Underwriting Agreement dated as of March 20, 2007 between Counterparty and GS&Co., as representative of the Underwriters party thereto (the “Underwriting Agreement”) by the number of Convertible Notes in
denominations of USD1,000 principal amount issued pursuant to such exercise (such Convertible Notes, the “Additional Convertible Notes”). For the avoidance of doubt, the Number of Options outstanding shall be reduced by each
exercise of Options hereunder.
		
	Option Entitlement:	 	As of any date, a number of Shares per Option equal to the Applicable Conversion Rate (as defined in the

  

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		 	Indenture, but without regard to any adjustments to the Applicable Conversion Rate pursuant to Sections 12.01(f) or 12.04(f) of the Indenture) as of such date.
		
	Strike Price:	 	As of any date, an amount in USD, rounded to the nearest cent (with 0.5 cents being rounded upwards), equal to USD1,000 divided by the Option Entitlement as of such
date.
		
	Number of Shares:	 	The product of the Number of Options, the Option Entitlement and the Applicable Percentage.
		
	Applicable Percentage:	 	75%
		
	Premium:	 	USD61,695,000.00 (Premium per Option USD274.20); 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 the Premium per Option shall be paid on the Additional Premium Payment Date.
		
	Premium Payment Date:	 	The Effective Date
		
	Additional Premium Payment Date:	 	The closing date for the purchase and sale of the Additional Convertible Notes.
		
	Exchange:	 	The NASDAQ Global Select Market
		
	Related Exchange:	 	All Exchanges

 Procedures for Exercise: 
  

			
	Exercise Date:	 	Each Conversion Date.
		
	Conversion Date:	 	Each “Conversion Date”, as defined in the Indenture, occurring during the Exercise Period for Convertible Notes other than Convertible Notes with respect to which Counterparty makes
the direction described in Section 12.02(c) of the Indenture and the financial institution designated by Counterparty accepts such Convertible Notes in accordance with Section 12.02(c) of the Indenture (such Convertible Notes, other than those
excluded above (each in denominations of USD1,000 principal amount), the “Relevant Convertible Notes” for such Conversion Date). For the avoidance of doubt, Convertible Notes are “accepted” for purposes of the foregoing
upon the earlier of the declaration of the designated financial institution’s agreement to exchange such Convertible Notes or delivery of such Convertible Notes to such financial institution for purposes of such exchange.
		
	Exercise Period:	 	The period from and excluding the Trade Date to and including the Expiration Date.
		
	Expiration Date:	 	The earlier of (i) the last day on which any Convertible Notes remain outstanding and (ii) the third “Scheduled Trading Day”, as defined in the Indenture, immediately preceding the
“Maturity Date”, as defined in the Indenture.

  

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	Automatic Exercise on Conversion Dates:	 	On each Conversion Date, a number of Options equal to the number of Relevant Convertible Notes for such Conversion Date in denominations of USD1,000 principal amount shall be automatically
exercised, subject to “Notice of Exercise” below.
		
	Notice Deadline:	 	In respect of any exercise of Options hereunder, the Scheduled Trading Day following the relevant Conversion Date; provided that if such exercise is a Net Share Exercise, the Notice
Deadline shall be the Scheduled Trading Day immediately preceding the first Scheduled Trading Day of the relevant “Observation Period”, as defined in the Indenture, subject to “Notice of Exercise” below.
		
	Net Share Exercise:	 	Any exercise of Options that relates to the Relevant Convertible Notes for any Conversion Date (i) following the date on which Counterparty has made the irrevocable election to satisfy its
conversion obligation by paying principal in cash and any excess of the conversion obligation over the principal amount in Shares in accordance with Section 12.02(b) of the Indenture (such election, the “Net Share Conversion
Election,” and any such Relevant Convertible Notes, “Net Share Settled Relevant Convertible Notes”), or (ii) not following the date on which Counterparty has made the Net Share Conversion Election and (a) occurring prior to
the period starting on the 30th Scheduled Trading Day immediately preceding the Maturity Date and ending on the Maturity Date (such period, the “Final Conversion Period”) or (b) occurring during the Final Conversion Period if the
Settlement Method Reference Price is greater than 90% of the Strike Price as of the last Settlement Method Reference Date and less than 110% of such Strike Price. In the case of clause (ii), the Relevant Convertible Notes for the relevant Conversion
Date shall be considered Net Share Settled Relevant Convertible Notes for purposes hereof, and the Observation Period for such Relevant Convertible Notes shall be deemed to be the Observation Period for such Relevant Convertible Notes that would
apply if Counterparty had made the Net Share Conversion Election.
		
	Settlement Method Reference Price:	 	For any Settlement Method Reference Date, the arithmetic average of the “Daily VWAP”, as defined in the Indenture, for all of the Settlement Method Reference Dates as if each such date
were a “VWAP Trading Day,” as defined in the Indenture, occurring during an Observation Period.
		
	Settlement Method Reference Dates:	 	The ten consecutive VWAP Trading Days ending on

  

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		 	the first day of the Final Conversion Period (or, if such day is not a VWAP Trading Day, ending on the immediately preceding VWAP Trading Day).
		
	Notice of Exercise:	 	Notwithstanding anything to the contrary in the Equity Definitions, Dealer shall have no obligation to make any payment or delivery in respect of any exercise of Options hereunder unless
Counterparty notifies Dealer in writing prior to 5:00 PM, New York City time, on the Notice Deadline in respect of such exercise of (i) the number of Options being exercised on such Exercise Date, (ii) the scheduled settlement date under the
Indenture for the Relevant Convertible Notes for the related Conversion Date, (iii) whether such Relevant Convertible Notes are Net Share Settled Relevant Convertible Notes and (iv) if such exercise is a Net Share Exercise, the first Scheduled
Trading Day of the relevant Observation Period. Notwithstanding the foregoing, in the case of any Net Share Exercise of Options hereunder in connection with the conversion of any Relevant Convertible Notes for any Conversion Dates occurring during
the Final Conversion Period, (a) the Notice Deadline shall be 12:00 p.m. (New York City time) on the Scheduled Trading Day immediately following the relevant Exercise Date and the content of such notice shall be as set forth in clauses (i), (ii) and
(iii) above. For the avoidance of doubt, if Counterparty fails to give such notice when due in respect of any exercise of Options hereunder, Dealer’s obligation to make any payment or delivery in respect of such exercise shall be permanently
extinguished, and late notice shall not cure such failure; provided that, in the case of any Net Share Exercise hereunder, notwithstanding the foregoing, such 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 Exchange Business Day of the relevant Observation Period, in which event the Calculation Agent shall have the right to 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 expenses incurred by Dealer or any of its affiliates 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.
		
	 Dealer’s Telephone Number
 and
Telex and/or Facsimile Number
 and Contact Details for purpose of
 Giving Notice:
	 	 To:        Credit Suisse, New York branch

	 
		 	               Eleven Madison Avenue
               New York, NY 10010-3629

		
		 	

  

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		 	Telephone: (212) 325 8676 / (212) 538 5306
		 	Facsimile:  (212) 325 8173

 Settlement Terms: 
  

			
	Settlement Date:	 	For any Exercise Date, the settlement date for the Shares to be delivered in respect of the Convertible Notes for the relevant Conversion Date under the terms of the Indenture;
provided that the Settlement Date shall not be prior to the latest of (i) the date one Settlement Cycle following such Conversion Date (or, in the case of a Net Share Exercise, the final day of the relevant Observation Period), (ii) the
Exchange Business Day immediately following the date on which Counterparty gives notice to Dealer of such Settlement Date prior to 5:00 PM, New York City time, and (iii) the Exchange Business Day immediately following the date Counterparty
provides the Notice of Delivery Obligation prior to 5:00 PM, New York City time.
		
	Delivery Obligation:	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above, in respect of any Exercise Date, Dealer will
deliver to Counterparty on the related Settlement Date a number of Shares equal to the product of (x) the Applicable Percentage and (y) the aggregate number of Shares, if any, that Counterparty is obligated to deliver to the holder(s) of the
Relevant Convertible Notes for such Conversion Date pursuant to Section 12.02(a) of the Indenture or, if the exercise of Options hereunder occurring on such Exercise Date is a Net Share Exercise, pursuant to Section 12.02(b) of the Indenture (except
that such aggregate number of Shares shall be determined without taking into consideration any rounding pursuant to Section 12.02(a) or 12.02(b), as the case may be, of the Indenture and shall be rounded down to the nearest whole number) and cash in
lieu of fractional shares, if any, resulting from such rounding (such Shares and cash, if any, in lieu of fractional Shares collectively, the “Convertible Obligation”); provided that the Convertible Obligation shall be
determined excluding any Shares (and cash in lieu of fractional Shares, if any) that Counterparty is obligated to deliver to holder(s) of the Relevant Convertible Notes as a direct or indirect result of any adjustments to the Conversion Rate
pursuant to Sections 12.01(f) or 12.04(f) of the Indenture and any interest payment that the Counterparty is (or would have been) obligated to deliver to holder(s) of the Relevant Convertible Notes for such Conversion Date; and provided
further, that, if the exercise of Options hereunder occurring on such Exercise Date is a Net Share Exercise of the type described in clause (ii) of

  

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	 	 	the definition of Net Share Exercise, the Delivery Obligation shall be determined
as if Counterparty had made the Net Share Conversion Election, except that, if
such Exercise Date
occurs during the Final Conversion Period and the Delivery
Obligation Value would otherwise exceed the Convertible Obligation Value, the
number of Shares comprising the Delivery Obligation shall be reduced (and the
amount of cash in respect
of fractional Shares shall be adjusted) so that the
resulting Delivery Obligation Value equals the Convertible Obligation Value; and
provided further that if such exercise relates to the conversion of Relevant
Convertible Bonds in
connection with which holders thereof are entitled to receive
additional Shares pursuant to the adjustments to the Applicable Conversion Rate
set forth in Section 12.01(f) of the Indenture, then, notwithstanding the foregoing,
the Delivery
Obligation shall include such additional Shares, except that the
Delivery Obligation shall be capped so that the value of the Delivery Obligation
(as determined by the Calculation Agent using the VWAP Price on the relevant
Obligation Value
Date) does not exceed (A) if such exercise is not a Net Share
Exercise, the sum of (x) the amount as determined by the Calculation Agent using
the VWAP Price on the relevant Obligation Value Date that would be payable by
Dealer pursuant to
Section 6 of the Agreement if such Conversion Date were an
Early Termination Date resulting from an Additional Termination Event with
respect to which the Transaction (except that, for purposes of determining such
amount, the Number of
Options shall be deemed to be equal to the number of
Options exercised on such Exercise Date) was the sole Affected Transaction and
Counterparty was the sole Affected Party (determined without regard to Section
8(c) of this Confirmation)
(the “Unwind Value”) and (y) the aggregate principal
amount of such Relevant Convertible Bonds, or (B) if such exercise is a Net Share
Exercise, the Unwind Value. For the avoidance of doubt, in the case of any Net
Share Exercise
hereunder, if the “Daily Conversion Value”, as defined in the
Indenture, for each of the VWAP Trading Days occurring in the relevant
Observation Period is less than or equal to USD40, Dealer will have no delivery
obligation
hereunder in respect of the related Exercise Date. For the avoidance of
doubt, Dealer’s obligations set forth in this paragraph are conditioned on
Counterparty’s satisfaction of its obligations, if any, set forth below
under
“Counterparty Payment Obligation On Certain Settlement Dates”.
		
	Delivery Obligation Value:	 	The value of the Delivery Obligation (determined without regard to the exception at the end of the first

  

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	 	 	further proviso to the first sentence of “Delivery Obligation” above), as
determined by the Calculation Agent using a per Share value for any Shares
comprising the Delivery
Obligations equal to the Relevant Price on the Obligation
Value Date as if such date were a Valuation Date (the “Obligation Value Price”).
		
	Convertible Obligation Value:	 	The Applicable Percentage of the difference of (i) the value of the Convertible Obligation, as determined by the Calculation Agent using a per Share value for any Shares comprising the
Convertible Obligation equal to the Obligation Value Price, minus (ii) the principal amount of the Relevant Convertible Notes for the related Conversion Date. For the avoidance of doubt, the Convertible Obligation Value shall be determined
based on the actual Convertible Obligation, and Counterparty shall not be deemed to have made the Net Share Conversion Election, and the Relevant Convertible Notes shall not be deemed to be Net Share Settled Relevant Convertible Notes, for purposes
of such determination.
		
	Obligation Value Date:	 	The second Exchange Business Day immediately preceding the relevant Settlement Date.
		
	Notice of Delivery Obligation:	 	No later than the Exchange Business Day immediately following the Conversion Date (or, in the case of a Net Share Exercise, the last day of the relevant Observation Period), Counterparty
shall give Dealer notice of the final number of Shares (and cash in lieu of fractional Shares, if any) comprising the relevant Convertible Obligation; provided that, with respect to any Exercise Date for a Net Share Exercise occurring during
the Final Conversion Period, Counterparty may provide Dealer with a single notice of the aggregate number of Shares (and cash in lieu of fractional Shares, if any) comprising the Convertible Obligations for all Exercise Dates occurring during such
period (it being understood, for the avoidance of doubt, that the requirement of Counterparty to deliver such notice shall not limit Counterparty’s obligations with respect to Notice of Exercise or Dealer’s obligations with respect to
Delivery Obligation, each as set forth above, in any way).
		
	Counterparty Payment On Certain	 	
	Settlement Dates:	 	In the case of any exercise of Options hereunder other than a Net Share Exercise, in lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, Counterparty shall
pay to Dealer on the related Settlement Date in immediately available funds an amount in cash equal to the product of the number of Options being exercised on such Exercise Date and USD1,000.

  

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	Other Applicable Provisions:	 	To the extent Dealer is obligated to deliver Shares hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity Definitions will be applicable as if
“Physical Settlement” applied to the Transaction; provided that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to
restrictions, obligations, limitations or requirements under applicable securities laws that exist as a result of the fact that Buyer is the issuer of the Shares.
		
	Restricted Certificated Shares:	 	Notwithstanding anything to the contrary in the Equity Definitions, Dealer may, in whole or in part, deliver Shares in certificated form representing the Number of Shares to be Delivered to
Counterparty in lieu of delivery through the Clearance System.

 Adjustments: 
  

			
	Method of Adjustment:	 	Notwithstanding Section 11.2 of the Equity Definitions, upon the occurrence of any event or condition set forth in Sections 12.04(a), (b), (c), (d) and (e) of the Indenture, the Calculation
Agent shall make the corresponding adjustment in respect of any one or more of the Number of Options, the Option Entitlement and any other variable relevant to the exercise, settlement or payment of the Transaction, to the extent an analogous
adjustment is made under the Indenture. Immediately upon the occurrence of any “Adjustment Event”, as defined in the Indenture, Counterparty shall notify the Calculation Agent of such Adjustment Event; and once the adjustments to be made
to the terms of the Indenture and the Convertible Notes in respect of such Adjustment Event have been determined, Counterparty shall immediately notify the Calculation Agent in writing of the details of such adjustments.

 Extraordinary Events: 
  

			
	Merger Events:	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition set forth in Section 12.10 of the
Indenture.
		
	Consequences of Merger Events:	 	Notwithstanding Section 12.2 of the Equity Definitions, upon the occurrence of a Merger Event, the Calculation Agent shall make the corresponding adjustment in respect of any adjustment under
the Indenture to any one or more of the nature of the Shares, the Number of Options, the Option Entitlement and any other variable relevant to the exercise, settlement or payment for the Transaction, to the extent an analogous adjustment is made
under the Indenture in respect of such Merger Event; provided that such adjustment shall be made without regard to any adjustment to the Conversion Rate for the issuance of additional Shares as set forth in

  

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		 	Sections 12.01(f) or 12.04(f) of the 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), Counterparty shall reasonably promptly (but in any event prior to the Merger Date) 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.
		
	Nationalization, Insolvency or Delisting:	 	Cancellation and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it 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 Select Market or the NASDAQ Global
Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.
		
	Additional Disruption Events:	 	

  

					
	(a)	 	Change in Law:	 	Applicable
			
	(b)	 	Insolvency Filing:	 	Applicable
			
	(c)	 	Increased Cost of Hedging:	 	Applicable

  

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

  

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

	
	Counterparty Payment Instructions:

  

 10 

							
		  	T o be provided by Counterparty.
		
	5.	  	Offices:
		
		  	The Office of Dealer for the Transaction is:
			
		  		  	Credit Suisse International
One Cabot Square
London E14 4QJ
England
		
		  	The Office of Counterparty for the Transaction is:
			
		  		  	397 Eagleview Boulevard
Exton, PA 19341
		
	6.	  	Notices: For purposes of this Confirmation:
			
	(a)	  		  	Address for notices or communications to Counterparty:
				
		  		  	To:	  	 ViroPharma Incorporated
 397 Eagleview
Boulevard
 Exton, PA 19341

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

				
		  		  	Telephone:	  	(212) 325 8676 / (212) 538 5306 / (212) 538 1193 / (212) 538 6886
		  		  	Facsimile:	  	(212) 325 8173

  

	 	7.	Representations, Warranties and Agreements: 

 (a) In
addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with, Dealer as follows: 
 (i) On the Trade Date, (A) none of Counterparty and its officers and directors is aware of any material nonpublic information
regarding Counterparty or the Shares and (B) all reports and other documents filed by Counterparty with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a
material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading. 
 (ii) On the Trade Date, neither Counterparty nor any “affiliate” or “affiliated purchaser” (each as defined in Rule
10b-18 of the Exchange Act (“Rule 10b-18”)) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative 

  

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instrument other than the Transaction) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender
offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable or exercisable for Shares. 
 (iii) Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Dealer is not making
any representations or warranties with respect to the treatment of the Transaction under any accounting standards including FASB Statements 128, 133 ( as amended), 149 or 150, EITF Issue No. 00-19, 01-6 or 03-6 (or any successor issue statements) or
under FASB’s Liabilities & Equity Project. 
 (iv) Without limiting the generality of Section 3(a)(iii) of
the Agreement, the Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act. 
 (v) Prior to the Trade
Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board of directors authorizing the Transaction and such other certificate or certificates as Dealer shall reasonably request. 
 (vi) Counterparty is not entering into this Confirmation to create actual or apparent trading activity in the Shares (or any security
convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or to otherwise violate the Exchange Act. 
 (vii) Counterparty is not, and after giving effect to the transactions contemplated hereby will not be, required to register as, an
“investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
 (viii) On each of
the Trade Date, the Premium Payment Date, any Settlement Date in respect of any Exercise Date for an exercise of Options hereunder that is not a Net Share Exercise, and the Additional Premium Payment Date, if any, (A) the assets of Counterparty
at their fair valuation exceed the liabilities of Counterparty, including contingent liabilities, (B) the capital of Counterparty is adequate to conduct the business of Counterparty and (C) Counterparty has the ability to pay its debts and
obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts mature. 
 (ix) The representations and warranties of Counterparty set forth in Section 3 of the Agreement and Section 1 of the Underwriting Agreement are true and correct as of the Trade Date, the Effective Date and
the Additional Premium Payment Date and are hereby deemed to be repeated to Dealer as if set forth herein. 
 (b) Each of Dealer and
Counterparty agrees and represents that it is an “eligible contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended. 
 (c) Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and warrants to Dealer that (i) it has the financial ability to bear the economic risk of
its investment in the Transaction and is able to bear a total loss of its investment and its investments in and liabilities in respect of the Transaction, which it understands are not readily marketable, are not disproportionate to its net worth,
and it is able to bear any loss in connection with the Transaction, including the loss of its entire investment in the Transaction, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the
Securities Act, (iii) it is entering into the Transaction for its own account and without a view to the distribution or resale thereof, (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be
registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws, and (v) its financial condition is such that it has no need for liquidity with respect to its investment in the
Transaction and no need to dispose of any portion thereof to satisfy any existing or contemplated undertaking or indebtedness and is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice),
and understands and accepts, the terms, conditions and risks of the Transaction. 
  

 12 

 (d) Each of Dealer and Counterparty agrees and acknowledges that Dealer is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The parties hereto
further agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder is a
“settlement payment,” as such term is defined in Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each
payment and delivery hereunder is a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6),
362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code. 
 (e) 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. 
 (f) Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Trade Date and reasonably acceptable to Dealer in form and substance,
with respect to the matters set forth in Section 3(a) of the Agreement. 
 8. Other Provisions: 
 (a) Right to Extend. Dealer may postpone any Settlement Date or any other date of delivery by Dealer, with respect to some or all of the relevant
Options, 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 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. 
 (b) Additional
Termination Events. The occurrence of (i) an event of default with respect to Counterparty under the terms of the Convertible Notes as set forth in Section 5.01 of the Indenture that results in an acceleration of the Convertible Notes
pursuant to the terms of the Indenture, or (ii) an Amendment Event shall be an Additional Termination Event with respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole Affected Party, and Dealer shall be
the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement. 
 “Amendment
Event” means that Counterparty amends, modifies, supplements or obtains a waiver in respect of any term of the Indenture or the Convertible Notes governing the principal amount, coupon, maturity, repurchase obligation of Counterparty,
redemption right of Counterparty, any term relating to conversion of the Convertible Notes (including changes to the conversion price, conversion settlement dates or conversion conditions), or any term that would require consent of the holders of
not less than 100% of the principal amount of the Convertible Notes to amend, in each case without the prior consent of Dealer, such consent not to be unreasonably withheld. 
 (c) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events. If Dealer shall owe Counterparty any amount
pursuant to Section 12.2 of the Equity Definitions and “Consequences of Merger Events” above, or Sections 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of a Merger Event, Insolvency, or Nationalization, in
which the consideration or proceeds to be paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in which Counterparty is the Defaulting Party or a
Termination Event in which Counterparty is the Affected Party, that resulted from an event or events within Counterparty’s control) (a “Payment Obligation”), Counterparty shall have the right, in its sole discretion, to require
Dealer to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, by 4:00 P.M. New York City time on the
Merger Date, Announcement Date or Early Termination Date, as applicable (“Notice of Share Termination”). Upon 

  

 13 

 
such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the Merger Date, Announcement Date
or Early Termination Date, as applicable: 
  

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

 (d) Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith
reasonable judgment of Dealer, the Shares (the “Hedge Shares”) acquired by Dealer for the purpose of hedging its obligations pursuant to the Transaction cannot be sold in the U.S. public market by Dealer without registration under
the Securities Act, Counterparty shall, at its election: (i) in order to allow Dealer to sell the Hedge Shares in a registered offering, make available to Dealer an effective registration statement under the Securities Act to cover the resale
of such Hedge Shares and (A) enter into an agreement, in form and substance satisfactory to Dealer, substantially in the form of an underwriting agreement for a registered offering, (B) provide accountant’s “comfort” letters
in customary form for registered offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside 

  

 14 

 
counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for
registered offerings of equity securities and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities;
provided, however, that if Dealer, in its sole reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering
referred to above, then clause (ii) or clause (iii) of this Section 8(d) shall apply at the election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, use its best efforts to enter
into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance satisfactory to Dealer, including customary representations, covenants,
blue sky and other governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such other documentation as is customary
for private placements agreements, all reasonably acceptable to Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in its reasonable judgment, to compensate Dealer for any
discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP Price on such Exchange Business Days, and in the amounts, requested by
Dealer. “VWAP Price” means, on any Exchange Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page VPHM.Q <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). For the avoidance of doubt, Counterparty is not obligated to purchase Shares under any circumstances under this Section 8(d) unless it elects to do so pursuant to Section 8(d)(iii).

 (e) Repurchase Notices. Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, promptly give Dealer
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). The “Notice Percentage” as of any day is the
fraction, expressed as a percentage, the numerator of which is the Number of Shares and the denominator of which is the number of Shares outstanding on such day. In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the
day and in the manner specified in this Section 8(e) then Counterparty agrees to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person
being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party may become subject under applicable securities
laws, including without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure. If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any
Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability. In addition, Counterparty will reimburse any
Indemnified Party for all expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with the investigation of, preparation for or defense or settlement of any pending or threatened
claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Counterparty. This indemnity
shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit of any permitted assignee of
Dealer. 
 (f) Transfer and Assignment. Neither party may transfer any of its rights or obligations under the Transaction without the
prior written consent of the non-transferring party; provided that Dealer may transfer or assign without any consent of Counterparty its rights and obligations hereunder, in whole or in part, to any of its affiliates whose obligations
hereunder would be guaranteed by Credit Suisse; provided further that at any time at which (i) the Equity Percentage exceeds 9.0% or the Rights Agreement Equity 

  

 15 

 
Percentage exceeds 18% (either such condition, and “Excess Ownership Position”), or (ii) a Hedging Disruption has occurred and is
continuing, if Dealer, in its discretion, is unable to effect a transfer or assignment to a third party in accordance with the requirements set forth above after using its commercially reasonable efforts (and, in the event of a Hedging Disruption,
after attempting to effect such transfer or assignment for five consecutive Scheduled Trading Days) on pricing terms reasonably acceptable to Dealer such that an Excess Ownership Position or a Hedging Disruption, as the case may be, no longer
exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership Position or Hedging Disruption, as the case
may be, no longer exists. In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section 8(c) of this
Confirmation as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be the sole Affected Party with respect to such
partial termination and (iii) such portion of the Transaction shall be the only Terminated Transaction. In the event that a Hedging Disruption has occurred, the Calculation Agent may also adjust one or more terms of the Transaction to account
for the difference in the economic position in respect of an option transaction with terms matching that of the Transaction (an “Equivalent Transaction”) of a hypothetical dealer who is fully hedged in respect of such Equivalent
Transaction and a hypothetical dealer hedging such Equivalent Transaction with respect to whom a Hedging Disruption has occurred to the same extent and for the same duration as such Hedging Disruption with respect to Dealer and the Transaction. The
“Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates subject to aggregation with Dealer, for purposes of the
“beneficial ownership” test under Section 13 of the Exchange Act (collectively, “Dealer Group”), beneficially own (within the meaning of Section 13 of the Exchange Act) on such day and (B) the denominator of
which is the number of Shares outstanding on such day. The “Rights Agreement Equity Percentage” as of any day is the fraction, expressed as percentage, (A) the numerator of which is the number of Shares that Dealer, together
with all of its Affiliates and Associates (each as defined in the Rights Agreement between Counterparty and Stocktrans, Inc., as Rights Agent, dated September 10, 1998 (the “Rights Agreement”)) (collectively, the
“Rights Agreement Dealer Group”), Beneficially Own (as defined in the Rights Agreement) on such day and (B) the denominator of which is the number of Shares outstanding on such day. Dealer will use commercially
reasonable efforts, and will use commercially reasonable efforts to cause other members of the Dealer Group and the Rights Agreement Dealer Group, in consultation with counsel as to legal and regulatory issues, to hedge its exposure to the
Transaction and to manage its other positions through the use of cash-settled swaps or other derivative instruments to the extent necessary to avoid the occurrence of an Excess Ownership Position. Counterparty may transfer or assign its rights and
obligations hereunder and under the Agreement, in whole or in part, to any party with the consent of Dealer, such consent not to be unreasonably withheld. 
 (g) Staggered Settlement. If, as of any Exchange Business Day during the period from the relevant Conversion Date to the related Settlement Date, the Staggered Settlement Equity Percentage is greater than 9.0%
or the Rights Agreement Staggered Settlement Equity Percentage is greater than 18%, Dealer may, by notice to Counterparty prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares on one or more dates
(each, a “Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows: 
 (i) in such notice, Dealer will specify to Counterparty the related Staggered Settlement Dates (each of which will be on or prior to the date that follows such Nominal Settlement Date by 20 VWAP Trading Days, but not prior to the relevant
Conversion Date) or delivery times and how it will allocate the Shares it is required to deliver under “Delivery Obligation” (above) among the Staggered Settlement Dates or delivery times; and 
 (ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder on all such Staggered Settlement Dates and delivery
times will equal the number of Shares that Dealer would otherwise be required to deliver on such Nominal Settlement Date. 
 The “Staggered Settlement Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the sum of (i) the number of Shares that Dealer Group beneficially owns (within
the meaning of Section 13 of the Exchange Act) on such day, 

  

 16 

 
other than any Shares so owned as a hedge of the Transaction, and (ii) the Number of Shares hereunder and (B) the denominator of which is the
number of Shares outstanding on such day. 
 The “Rights Agreement Staggered Settlement Equity Percentage” as
of any days is the fraction, expressed as a percentage, (A) the numerator of which is the sum of (i) the number of Shares that the Rights Agreement Dealer Group Beneficially Owns (as defined in the Rights Agreement) on such day, other than
Shares so Beneficially Owned as a hedge of the Transaction, and (ii) the Number of Shares hereunder and (B) the denominator of which is the number of Shares outstanding on such day. 
 (h) Agreement in Respect of Termination Amounts. In determining any amounts payable in respect of the termination or cancellation of the
Transaction pursuant to Section 6 of the Agreement or Article 12 of the Equity Definitions, the Calculation Agent shall make such determination without regard to (i) changes to costs of funding, stock loan rates or expected dividends, or
(ii) losses or costs incurred in connection with terminating, liquidating or re-establishing any hedge related to the Transaction (or any gain resulting from any of them). 
 (i) Disclosure. Effective from the date of commencement of discussions concerning the Transaction, Counterparty and each of its employees,
representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided
to Counterparty relating to such tax treatment and tax structure. 
 (j) Designation by Dealer. Notwithstanding any other provision in
this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such Shares
or other securities and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations. Dealer shall be discharged of its obligations to Counterparty to the extent of any such
performance. 
 (k) No Set-off. The provisions of Section 2(c) of the Agreement shall not apply to the Transaction. Each party
waives any and all rights it may have to set-off delivery or payment obligations it owes to the other party under the Transaction against any delivery or payment obligations owed to it by the other party, whether arising under the Agreement, under
any other agreement between parties hereto, by operation of law or otherwise. 
 (l) Equity Rights. Dealer acknowledges and agrees
that this Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties agree that the
preceding sentence shall not apply at any time other than during Counterparty’s bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations under this Confirmation or the Agreement. 
 (m) Early Unwind. In the event the sale by Counterparty of the Convertible Notes is not consummated with the Underwriters pursuant to the
Underwriting Agreement for any reason by the close of business in New York on March 26, 2007 (or such later date as agreed upon by the parties, which in no event shall be later than March 30, 2007) (March 26, 2007 or such later date being
the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”), on the Early Unwind Date and the Transaction and all of the respective rights and obligations of Dealer and Counterparty
thereunder shall be cancelled and terminated. Following such termination and cancellation, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations
or liabilities of either party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date. Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind, all
obligations with respect to the Transaction shall be deemed fully and finally discharged. 
 (n) Waiver of Trial by
Jury. EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE 

  

 17 

 
TRANSACTION OR THE ACTIONS OF COUNTERPARTY OF ITS AFFILIATES OR DEALER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

 (o) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF
LAW DOCTRINE). 
 (p) Counterparts. This Confirmation may be executed in several counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument. 
 (q) Role of Agent. Credit Suisse, New York branch,
in its capacity as Agent will be responsible for (A) effecting this Transaction, (B) issuing all required confirmations and statements to Dealer and Counterparty, (C) maintaining books and records relating to this Transaction in
accordance with its standard practices and procedures and in accordance with applicable law and (D) unless otherwise requested by Counterparty, receiving, delivering, and safeguarding Counterparty’s funds and any securities in connection
with this Transaction, in accordance with its standard practices and procedures and in accordance with applicable law. 
  

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

  

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

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

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

  

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

  

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

  

 18 

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

  

 19 

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

			
	 Yours faithfully,

	
	 CREDIT SUISSE INTERNATIONAL

		
	 By:
	 	 /s/ Sayedur Khan

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

	 Name:
	 	Laura Muir
	 Title:
	 	
	
	 CREDIT SUISSE, NEW YORK BRANCH, AS AGENT FOR CREDIT SUISSE INTERNATIONAL

		
	 By:
	 	 /s/ Yolanda Perez-Wilson

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

	 Name:
	 	Melissa Garcia
	 Title:
	 	Assistant Vice President

  

			
	 Agreed and Accepted By:

	
	VIROPHARMA INCORPORATED
		
	 By:
	 	 /s/ Michel de Rosen

	 Name:
	 	Michel de Rosen
	 Title:
	 	 President and CEO

  

 20Confirmation of Convertible Bond Hedge Transaction

 Exhibit 10.2 
 EXECUTION COPY 
 Opening Transaction 
  

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

  

 Dear Sir(s): 
 The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of
the above-referenced transaction entered into on the Trade Date specified below (the “Transaction”) between Wells Fargo Bank, National Association (“Dealer”) and ViroPharma Incorporated
(“Counterparty”). This communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. 
 1. This Confirmation is subject to, and incorporates, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and
provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2000 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern. Certain defined terms used herein have the meanings assigned to them in the
First Supplemental Indenture to be dated as of March 26, 2007 between Counterparty and Wilmington Trust Company, as trustee (the “Indenture”) relating to the USD225,000,000 principal amount of 2.00% convertible senior notes due
2017 (the “Convertible Notes”). In the event of any inconsistency between the terms defined in the Indenture and this Confirmation, this Confirmation shall govern. For the avoidance of doubt, (i) the Transaction shall be the
only transaction under the Agreement and (ii) references herein to sections of the Indenture are based on the draft of the Indenture most recently reviewed by the parties at the time of execution of this Confirmation. If any relevant sections
of the Indenture are changed, added or renumbered between the execution of this Confirmation and the execution of the Indenture, the parties will amend this Confirmation in good faith to preserve the economic intent of the parties. The parties
further acknowledge that references to the Indenture herein are references to the Indenture as in effect on the date of its execution and if the Indenture is amended following its execution, any such amendment will be disregarded for purposes of
this Confirmation unless the parties agree otherwise in writing. The Transaction is subject to early unwind if the closing of the Convertible Notes is not consummated for any reason, as set forth below in Section 8(l). 
 Each party is hereby advised, and each such party acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial
transactions and has taken other material actions in reliance upon the parties’ entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below. 

 This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as to the
terms of the Transaction to which this Confirmation relates. This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement as if Dealer and Counterparty had executed an agreement
in such form on the date hereof (but without any Schedule except for (i) the election of Loss and Second Method and US Dollars (“USD”) as the Termination Currency, (ii) the replacement of the word “third” in the
last line of Section 5(a)(i) with the word “first” and (iii) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to Counterparty with a “Threshold Amount” of USD 10 million).

 All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified
herein. In the event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern. 
 2. The Transaction constitutes a Share Option Transaction for purposes of the Equity Definitions. The terms of the particular Transaction to which this Confirmation relates are as follows: 
 General Terms: 
  

			
		
	Trade Date:	 	March 20, 2007
		
	Effective Date:	 	March 26, 2007
		
	Option Style:	 	Modified American, as described under “Procedures for Exercise” below.
		
	Option Type:	 	Call
		
	Seller:	 	Dealer
		
	Buyer:	 	Counterparty
		
	Shares:	 	The Common Stock of Counterparty, par value USD0.002 per share (Ticker Symbol: “VPHM”).
		
	Number of Options:	 	The number of Convertible Notes in denominations of USD1,000 principal amount issued by Counterparty on the closing date for the initial issuance of the Convertible Notes; provided
that the Number of Options shall be automatically increased as of the date of exercise by Goldman, Sachs & Co. (“GS&Co.”), as representative of the Underwriters (as defined in the Underwriting Agreement), of their option
pursuant to Section 2 of the Underwriting Agreement dated as of March 20, 2007 between Counterparty and GS&Co. as representative of the Underwriters party thereto (the “Underwriting Agreement”) by the number of Convertible Notes
in denominations of USD1,000 principal amount issued pursuant to such exercise (such Convertible Notes, the “Additional Convertible Notes”). For the avoidance of doubt, the Number of Options outstanding shall be reduced by each
exercise of Options hereunder.
		
	Option Entitlement:	 	As of any date, a number of Shares per Option equal to the Applicable Conversion Rate (as defined in the Indenture, but without regard to any adjustments to the Applicable Conversion Rate
pursuant to Sections 12.01(f) or 12.04(f) of the Indenture) as of such date.

  

 2 

			
		
	Strike Price:	 	As of any date, an amount in USD, rounded to the nearest cent (with 0.5 cents being rounded upwards), equal to USD1,000 divided by the Option Entitlement as of such
date.
		
	Applicable Percentage:	 	25%
		
	Number of Shares:	 	The product of the Number of Options, the Option Entitlement and the Applicable Percentage.
		
	Premium:	 	USD 21,324,375.00 (Premium per Option USD 94.775); 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 the Premium per Option shall be paid on the Additional Premium Payment Date.
		
	Premium Payment Date:	 	The Effective Date
		
	Additional Premium Payment Date:	 	The closing date for the purchase and sale of the Additional Convertible Notes.
		
	Exchange:	 	The NASDAQ Global Select Market
		
	Related Exchange:	 	All Exchanges

 Procedures for Exercise: 
  

			
	Exercise Date:	 	Each Conversion Date.
		
	Conversion Date:	 	Each “Conversion Date”, as defined in the Indenture, occurring during the Exercise Period for Convertible Notes other than Convertible Notes with respect to which Counterparty makes
the direction described in Section 12.02(c) of the Indenture and the financial institution designated by Counterparty accepts such Convertible Notes in accordance with Section 12.02(c) of the Indenture (such Convertible Notes, other than those
excluded above (each in denominations of USD1,000 principal amount), the “Relevant Convertible Notes” for such Conversion Date). For the avoidance of doubt, Convertible Notes are “accepted” for purposes of the foregoing
upon the earlier of the declaration of the designated financial institution’s agreement to exchange such Convertible Notes or delivery of such Convertible Notes to such financial institution for purposes of such exchange.
		
	Exercise Period:	 	The period from and excluding the Trade Date to and including the Expiration Date.
		
	Expiration Date:	 	The earlier of (i) the last day on which any Convertible Notes remain outstanding and (ii) the third “Scheduled Trading Day”, as defined in the Indenture, immediately preceding the
“Maturity Date”, as defined in the Indenture.
		
	 Automatic Exercise on
 Conversion Dates:
	 	On each Conversion Date, a number of Options equal

  

 3 

			
		 	to the number of Relevant Convertible Notes for such Conversion Date in denominations of USD1,000 principal amount shall be automatically exercised, subject to “Notice of Exercise”
below.
		
	Notice Deadline:	 	In respect of any exercise of Options hereunder, the Scheduled Trading Day following the relevant Conversion Date; provided that if such exercise is a Net Share Exercise, the Notice
Deadline shall be the Scheduled Trading Day immediately preceding the first Scheduled Trading Day of the relevant Observation Period, as defined in the Indenture, subject to “Notice of Exercise” below.
		
	Net Share Exercise:	 	Any exercise of Options that relates to the Relevant Convertible Notes for any Conversion Date (i) following the date on which Counterparty has made the irrevocable election to satisfy its
conversion obligation by paying principal in cash and any excess of the conversion obligation over the principal amount in Shares in accordance with Section 12.02(b) of the Indenture (such election, the “Net Share Conversion
Election,” and any such Relevant Convertible Notes, “Net Share Settled Relevant Convertible Notes”), or (ii) not following the date on which Counterparty has made the Net Share Conversion Election and (a) occurring prior to
the period starting on the 30th Scheduled Trading Day immediately preceding the Maturity Date and ending on the Maturity Date (such period, the “Final Conversion Period”) or (b) occurring during the Final Conversion Period if the
Settlement Method Reference Price is greater than 90% of the Strike Price as of the last Settlement Method Reference Date and less than 110% of such Strike Price. In the case of clause (ii), the Relevant Convertible Notes for the relevant Conversion
Date shall be considered Net Share Settled Relevant Convertible Notes. for purposes hereof, and the Observation Period for such Relevant Convertible Notes shall be deemed to be the Observation Period for such Relevant Convertible Notes that would
apply if Counterparty had made the Net Share Conversion Election.
		
	Settlement Method Reference Price:	 	For any Settlement Method Reference Date, the arithmetic average of the “Daily VWAP”, as defined in the Indenture, for all of the Settlement Method Reference Dates as if each such
date were a “VWAP Trading Day,” as defined in the Indenture, occurring during an Observation Period.
		
	Settlement Method Reference Dates:	 	The ten consecutive VWAP Trading Days ending on the first day of the Final Conversion Period (or, if such day is not a VWAP Trading Day, ending on the immediately preceding VWAP Trading
Day).

  

 4 

					
	Notice of Exercise:	 	Notwithstanding anything to the contrary in the Equity Definitions, Dealer shall have no obligation to make any payment or delivery in respect of any exercise of Options hereunder
unless Counterparty notifies Dealer and the Calculation Agent in writing prior to 5:00 PM, New York City time, on the Notice Deadline in respect of such exercise of (i) the number of Options being exercised on such Exercise Date, (ii) the scheduled
settlement date under the Indenture for the Relevant Convertible Notes for the related Conversion Date, (iii) whether such Relevant Convertible Notes are Net Share Settled Relevant Convertible Notes and (iv) if such exercise is a Net Share Exercise,
the first Scheduled Trading Day of the relevant Observation Period. Notwithstanding the foregoing, in the case of any Net Share Exercise of Options hereunder in connection with the conversion of any Relevant Convertible Notes for any Conversion
Dates occurring during the Final Conversion Period, (a) the Notice Deadline shall be 12:00 p.m. (New York City time) on the Scheduled Trading Day immediately following the relevant Exercise Date and the content of such notice shall be as set forth
in clauses (i), (ii) and (iii) above. For the avoidance of doubt, if Counterparty fails to give such notice when due in respect of any exercise of Options hereunder, Dealer’s obligation to make any payment or delivery in respect of such
exercise shall be permanently extinguished, and late notice shall not cure such failure; provided that, in the case of any Net Share Exercise hereunder, notwithstanding the foregoing, such 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 Exchange Business Day of the relevant Observation Period, in which event the Calculation Agent shall have the right to
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 expenses incurred by Dealer or Hedging Party or any of their respective
affiliates in connection with their hedging activities (including the unwinding of any hedge position) as a result of their not having received such notice prior to the applicable Notice Deadline.
			
	Dealer’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

  

 5 

					
		 	 Equities Trading Manager

		 	Telephone:	 	(415) 396-3962
		 	Facsimile:	 	(415) 646-9208
		
		 	With a copy to:
			
		 	Attn:	 	Michele Beasley
		 	Facsimile:	 	(415) 646-9208
		
	Calculation Agent’s Telephone Number and Telex and/or Facsimile Number and Contact Details for purposes of	 	
	Giving Notice:	 	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) 902-8996
		 	Facsimile:	 	(212) 902-0112
		
		 	With a copy to:
			
		 	Attn:	 	Tracey McCabe
		 		 	Equity Capital Markets
		 	Telephone:	 	(212) 357-0428
		 	Facsimile:	 	(212) 902-3000

 Settlement Terms: 
  

					
		
	Settlement Date:	 	For any Exercise Date, the settlement date for the Shares to be delivered in respect of the Convertible Notes for the relevant Conversion Date under the terms of the Indenture;
provided that the Settlement Date shall not be prior to the latest of (i) the date one Settlement Cycle following such Conversion Date (or, in the case of a Net Share Exercise, the final day of the relevant Observation Period), (ii) the
Exchange Business Day immediately following the date on which Counterparty gives notice to Dealer of such Settlement Date prior to 5:00 PM, New York City time, and (iii) the Exchange Business Day immediately following the date Counterparty
provides the Notice of Delivery Obligation prior to 5:00 PM, New York City time.
		
	Delivery Obligation:	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above, in respect of any Exercise Date,
Dealer will deliver to Counterparty on the related Settlement Date a number of Shares equal to the

  

 6 

			
		 	product of (x) the Applicable Percentage and (y) the aggregate number of Shares, if any, that Counterparty is obligated to deliver to the holder(s) of the Relevant Convertible Notes for such
Conversion Date pursuant to Section 12.02(a) of the Indenture or, if the exercise of Options hereunder occurring on such Exercise Date is a Net Share Exercise, pursuant to Section 12.02(b) of the Indenture (except that such aggregate number of
Shares shall be determined without taking into consideration any rounding pursuant to Section 12.02(a) or 12.02(b), as the case may be, of the Indenture and shall be rounded down to the nearest whole number) and cash in lieu of fractional shares, if
any, resulting from such rounding (such Shares and cash, if any, in lieu of fractional Shares collectively, the “Convertible Obligation”); provided that the Convertible Obligation shall be determined excluding any Shares (and
cash in lieu of fractional Shares, if any) that Counterparty is obligated to deliver to holder(s) of the Relevant Convertible Notes as a direct or indirect result of any adjustments to the Conversion Rate pursuant to Sections 12.01(f) or 12.04(f) of
the Indenture and any interest payment that the Counterparty is (or would have been) obligated to deliver to holder(s) of the Relevant Convertible Notes for such Conversion Date; and provided further that, if the exercise of Options hereunder
occurring on such Exercise Date is a Net Share Exercise of the type described in clause (ii) of the definition of Net Share Exercise, the Delivery Obligation shall be determined as if Counterparty had made the Net Share Conversion Election, except
that, if such Exercise Date occurs during the Final Conversion Period and the Delivery Obligation Value would otherwise exceed the Convertible Obligation Value, the number of Shares comprising the Delivery Obligation shall be reduced (and the amount
of cash in respect of fractional Shares shall be adjusted) so that the resulting Delivery Obligation Value equals the Convertible Obligation Value; and provided further that if such exercise relates to the conversion of Relevant Convertible
Bonds in connection with which holders thereof are entitled to receive additional Shares pursuant to the adjustments to the Applicable Conversion Rate set forth in Section 12.01(f) of the Indenture, then, notwithstanding the foregoing, the Delivery
Obligation shall include such additional Shares, except that the Delivery Obligation shall be capped so that the value of the Delivery Obligation (as determined by the Calculation Agent using the VWAP Price on the relevant Obligation Value Date)
does not exceed (A) if such exercise is not a Net Share Exercise, the sum of (x) the amount as determined by the Calculation Agent using the VWAP Price on the relevant Obligation Value Date that would be payable by Dealer pursuant to
Section

  

 7 

			
		 	6 of the Agreement if such Conversion Date were an Early Termination Date resulting from an Additional Termination Event with respect to which the Transaction (except that, for purposes of
determining such amount, the Number of Options shall be deemed to be equal to the number of Options exercised on such Exercise Date) was the sole Affected Transaction and Counterparty was the sole Affected Party (determined without regard to Section
8(c) of this Confirmation) (the “Unwind Value”) and (y) the aggregate principal amount of such Relevant Convertible Bonds, or (B) if such exercise is a Net Share Exercise, the Unwind Value. For the avoidance of doubt, in the case of
any Net Share Exercise hereunder, if the “Daily Conversion Value”, as defined in the Indenture, for each of the VWAP Trading Days occurring in the relevant Observation Period is less than or equal to USD40, Dealer will have no delivery
obligation hereunder in respect of the related Exercise Date. For the avoidance of doubt, Dealer’s obligations set forth in this paragraph are conditioned on Counterparty’s satisfaction of its obligations, if any, set forth below under
“Counterparty Payment Obligation On Certain Settlement Dates”.
		
	Delivery Obligation Value:	 	The value of the Delivery Obligation (determined without regard to the exception at the end of the first further proviso to the first sentence of “Delivery Obligation” above), as
determined by the Calculation Agent using a per Share value for any Shares comprising the Delivery Obligations equal to the Relevant Price on the Obligation Value Date as if such date were a Valuation Date (the “Obligation Value
Price”).
		
	Convertible Obligation Value:	 	The Applicable Percentage of the difference of (i) the value of the Convertible Obligation, as determined by the Calculation Agent using a per Share value for any Shares comprising the
Convertible Obligation equal to the Obligation Value Price, minus (ii) the principal amount of the Relevant Convertible Notes for the related Conversion Date. For the avoidance of doubt, the Convertible Obligation Value shall be determined
based on the actual Convertible Obligation, and Counterparty shall not be deemed to have made the Net Share Conversion Election, and the Relevant Convertible Notes shall not be deemed to be Net Share Settled Relevant Convertible Notes, for purposes
of such determination.
		
	Obligation Value Date:	 	The second Exchange Business Day immediately preceding the relevant Settlement Date.
		
	Notice of Delivery Obligation:	 	No later than the Exchange Business Day immediately following the Conversion Date (or, in

  

 8 

			
		 	the case of a Net Share Exercise, the last day of the relevant Observation Period), Counterparty shall give Dealer and the Calculation Agent notice of the final number of Shares (and cash in
lieu of fractional Shares, if any) comprising the relevant Convertible Obligation; provided that, with respect to any Exercise Date for a Net Share Exercise occurring during the Final Conversion Period, Counterparty may provide Dealer and the
Calculation Agent each with a single notice of the aggregate number of Shares (and cash in lieu of fractional Shares, if any) comprising the Convertible Obligations for all Exercise Dates occurring during such period (it being understood, for the
avoidance of doubt, that the requirement of Counterparty to deliver such notice shall not limit Counterparty’s obligations with respect to Notice of Exercise or Dealer’s obligations with respect to Delivery Obligation, each as set forth
above, in any way).
		
	Counterparty Payment On Certain	 	
	Settlement Dates:	 	In the case of any exercise of Options hereunder other than a Net Share Exercise, in lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, Counterparty shall
pay to Dealer on the related Settlement Date in immediately available funds an amount in cash equal to the product of the number of Options being exercised on such Exercise Date and USD1,000.
		
	Other Applicable Provisions:	 	To the extent Dealer is obligated to deliver Shares hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity Definitions will be applicable as if
“Physical Settlement” applied to the Transaction; provided that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to
restrictions, obligations, limitations or requirements under applicable securities laws that exist as a result of the fact that Buyer is the issuer of the Shares.
		
	Restricted Certificated Shares:	 	Notwithstanding anything to the contrary in the Equity Definitions, Dealer may, in whole or in part, deliver Shares in certificated form representing the Number of Shares to be Delivered to
Counterparty in lieu of delivery through the Clearance System.

 Adjustments: 
  

			
	Method of Adjustment:	 	Notwithstanding Section 11.2 of the Equity Definitions, upon the occurrence of any event or condition set forth in Sections 12.04(a), (b), (c), (d) and (e) of the Indenture, the Calculation
Agent shall make the corresponding adjustment in respect of any one or more of the Number of Options, the Option Entitlement and any other variable relevant to the exercise, settlement or payment of the Transaction, to

  

 9 

			
		 	the extent an analogous adjustment is made under the Indenture. Immediately upon the occurrence of any “Adjustment Event”, as defined in the Indenture, Counterparty shall notify the
Calculation Agent of such Adjustment Event; and once the adjustments to be made to the terms of the Indenture and the Convertible Notes in respect of such Adjustment Event have been determined, Counterparty shall immediately notify the Calculation
Agent in writing of the details of such adjustments.

 Extraordinary Events: 
  

			
	Merger Events:	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition set forth in Section 12.10 of the
Indenture.
		
	Consequences of Merger Events:	 	Notwithstanding Section 12.2 of the Equity Definitions, upon the occurrence of a Merger Event, the Calculation Agent shall make the corresponding adjustment in respect of any adjustment under
the Indenture to any one or more of the nature of the Shares, the Number of Options, the Option Entitlement and any other variable relevant to the exercise, settlement or payment for the Transaction, to the extent an analogous adjustment is made
under the Indenture in respect of such Merger Event; provided that such adjustment shall be made without regard to any adjustment to the Conversion Rate for the issuance of additional Shares as set forth in Sections 12.01(f) or 12.04(f) of
the 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), Counterparty shall reasonably promptly (but in any event prior to the Merger Date) 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.
		
	Nationalization, Insolvency or	 	
	Delisting:	 	Cancellation and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it 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 Select Market or the NASDAQ Global
Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any

  

 10 

			
		 	such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.

  

			
		
	Additional Disruption Events:	 	

  

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

  

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

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

  

 11 

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

		
	6.	 	Notices: For purposes of this Confirmation:
			
	(a)	 		 	Address for notices or communications to Counterparty:
				
		 		 	To:	 	ViroPharma Incorporated
		 		 		 	397 Eagleview Boulevard
		 		 		 	Exton, PA 19341
		 		 	Attn:	 	Chief Financial Officer
		 		 	Telephone:	 	(610) 458 7300
		 		 	 Facsimile:
	 	(610) 458 7380
			
		 		 	With a copy to:
				
		 		 	 Attn:
	 	General Counsel
		 		 	 Facsimile:
	 	(610) 458 7380
			
	(b)	 		 	Address for notices or communications to Dealer:
				
		 		 	 To:
	 	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
			
	(c)	 		 	Address for notices or communications to 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:
	 	Tracey McCabe
		 		 		 	Equity Capital Markets

  

 12 

			
	 Telephone:
	  	(212) 357-0428
	 Facsimile:
	  	(212) 902-3000

 7. Representations, Warranties and Agreements: 
 (a) In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty represents and warrants to and
for the benefit of, and agrees with, Dealer as follows: 
 (i) On the Trade Date, (A) none of Counterparty and its
officers and directors is aware of any material nonpublic information regarding Counterparty or the Shares and (B) all reports and other documents filed by Counterparty with the Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not
contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading. 
 (ii) On the Trade Date, neither Counterparty nor any “affiliate” or “affiliated purchaser” (each as defined in Rule
10b-18 of the Exchange Act (“Rule 10b-18”)) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument other than the Transaction) purchase, offer to purchase, place any
bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security
convertible into or exchangeable or exercisable for Shares. 
 (iii) Without limiting the generality of Section 13.1 of
the Equity Definitions, Counterparty acknowledges that neither Dealer nor GS is making any representations or warranties with respect to the treatment of the Transaction under any accounting standards including FASB Statements 128, 133 ( as
amended), 149 or 150, EITF Issue No. 00-19, 01-6 or 03-6 (or any successor issue statements) or under FASB’s Liabilities & Equity Project. 
 (iv) Without limiting the generality of Section 3(a)(iii) of the Agreement, the Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act. 
 (v) Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board of directors authorizing the
Transaction and such other certificate or certificates as Dealer shall reasonably request. 
 (vi) Counterparty is not
entering into this Confirmation to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or to otherwise violate the Exchange Act. 
 (vii) Counterparty is not, and after
giving effect to the transactions contemplated hereby will not be, required to register as, an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
 (viii) On each of the Trade Date, the Premium Payment Date, any Settlement Date in respect of any Exercise Date for an exercise of Options
hereunder that is not a Net Share Exercise, and the Additional Premium Payment Date, if any, (A) the assets of Counterparty at their fair valuation exceed the liabilities of Counterparty, including contingent liabilities, (B) the capital
of Counterparty is adequate to conduct the business of Counterparty and (C) Counterparty has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its
ability to pay as such debts mature. 
 (ix) The representations and warranties of Counterparty set forth in Section 3 of
the Agreement and Section 1 of the Underwriting Agreement are true and correct as of the Trade 

  

 13 

 
Date, the Effective Date and the Additional Premium Payment Date and are hereby deemed to be repeated to Dealer as if set forth herein. 
 (x) Counterparty understands that no obligations of Dealer to it hereunder will be entitled to the benefit of deposit insurance and that
such obligations will not be guaranteed by any affiliate of Dealer or any governmental agency. 
 (b) Each of Dealer and Counterparty agrees
and represents that it is an “eligible contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended. 
 (c) Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities
Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and warrants to Dealer that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total
loss of its investment and its investments in and liabilities in respect of the Transaction, which it understands are not readily marketable, are not disproportionate to its net worth, and it is able to bear any loss in connection with the
Transaction, including the loss of its entire investment in the Transaction, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the
Transaction for its own account and without a view to the distribution or resale thereof, (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted
under this Confirmation, the Securities Act and state securities laws, and (v) its financial condition is such that it has no need for liquidity with respect to its investment in the Transaction and no need to dispose of any portion thereof to
satisfy any existing or contemplated undertaking or indebtedness and is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks
of the Transaction. 
 (d) Each of Dealer and Counterparty agrees and acknowledges (A) that this Confirmation is (i) a
“securities contract,” as such term is defined in Section 741(7) of Title 11 of the United States Code (the “Bankruptcy Code”), with respect to which each payment and delivery hereunder is a “settlement
payment,” as such term is defined in Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder is a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Section 362(b)(6), 362(b)(17),
546(e), 546(g), 555 and 560 of the Bankruptcy Code. 
 (e) Counterparty shall deliver to Dealer and GS an opinion of counsel, dated as of the
Trade Date and reasonably acceptable to each of Dealer and GS in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement. 
 8. Other Provisions: 
 (a) Right to Extend. The Calculation Agent may postpone any Settlement
Date or any other date of delivery by Dealer, with respect to some or all of the relevant Options, if the 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 under the Transaction or a Hedging Party Related Transaction in light of existing liquidity conditions or to enable Hedging Party to effect purchases of Shares in connection with its hedging, hedge
unwind or settlement activity under the Transaction or a Hedging Party Related Transaction 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. 
 (b) Additional Termination
Events. The occurrence of (i) an event of default with respect to Counterparty under the terms of the Convertible Notes as set forth in Section 5.01 of the Indenture that results in an acceleration of the Convertible Notes pursuant to
the terms of the Indenture, or (ii) an Amendment Event shall be an Additional Termination Event with respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole Affected Party, and the Calculation Agent shall
be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement. 
  

 14 

 “Amendment Event” means that Counterparty amends, modifies, supplements or obtains a
waiver in respect of any term of the Indenture or the Convertible Notes governing the principal amount, coupon, maturity, repurchase obligation of Counterparty, redemption right of Counterparty, any term relating to conversion of the Convertible
Notes (including changes to the conversion price, conversion settlement dates or conversion conditions), or any term that would require consent of the holders of not less than 100% of the principal amount of the Convertible Notes to amend, in each
case without the prior consent of the Calculation Agent, such consent not to be unreasonably withheld. 
 (c) Alternative Calculations and
Payment on Early Termination and on Certain Extraordinary Events. If Dealer shall owe Counterparty any amount pursuant to Section 12.2 of the Equity Definitions and “Consequences of Merger Events” above, or Sections 12.3, 12.6,
12.7 or 12.9 of the Equity Definitions (except in the event of a Merger Event, Insolvency, or Nationalization, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of
the Agreement (except in the event of an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, that resulted from an event or events within Counterparty’s control) (a
“Payment Obligation”), Counterparty shall have the right, in its sole discretion, to require Dealer to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic
notice to Dealer and the Calculation Agent, confirmed in writing within one Scheduled Trading Day, by 4:00 P.M. New York City time on the Merger Date, Announcement Date or Early Termination Date, as applicable (“Notice of Share
Termination”). Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the Merger Date, Announcement Date or Early Termination Date, as applicable: 
  

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

  

 15 

			
	 Other applicable provisions:
	  	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.11 and 9.12 of the Equity Definitions will be applicable as if “Physical Settlement” applied
to the Transaction, except that all references to “Shares” shall be read as references to “Share Termination Delivery Units”; provided that the Representation and Agreement contained in Section 9.11 of the Equity
Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws as a result of the fact that Buyer is the issuer of any Share Termination
Delivery Units (or any part thereof).

 (d) Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith
reasonable judgment of either Hedging Party or Dealer, the Shares (the “Hedge Shares”) acquired by Hedging Party for the purpose of hedging its obligations pursuant to the Transaction or a Hedging Party Related Transaction cannot be
sold in the U.S. public market by Hedging Party 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, make available to Dealer
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 Dealer 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 Dealer and Hedging Party, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities and (E) afford
Dealer 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 Hedging
Party or Dealer, in its sole reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then
clause (ii) or clause (iii) of this Section 8(d) shall apply at the election of Counterparty; (ii) in order to allow Hedging Party to sell the Hedge Shares in a private placement, use its best efforts to enter into a private
placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance satisfactory to Dealer and Hedging Party, including customary representations, covenants,
blue sky and other governmental filings and/or registrations, indemnities to Dealer and Hedging Party, due diligence rights (for Dealer, 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 Dealer and Hedging Party(in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in
its reasonable judgment, to compensate Hedging Party for any discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Hedging Party at the VWAP
Price on such Exchange Business Days, and in the amounts, 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 VPHM.Q <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). For the avoidance of doubt, Counterparty is not obligated to purchase Shares under any circumstances under this
Section 8(d) unless it elects to do so pursuant to Section 8(d)(iii). 
 (e) Repurchase Notices. Counterparty shall, on any
day on which Counterparty effects any repurchase of Shares, promptly give Dealer and the 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). The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of which is the Number of Shares and the denominator of which is the number of Shares outstanding on
such day. In the event that Counterparty fails to provide Dealer or the Calculation Agent with a Repurchase Notice on the day and in the manner specified in this Section 8(e) 

  

 16 

 
then Counterparty agrees to indemnify and hold harmless Dealer, Hedging Party, their respective affiliates and their respective directors, officers,
employees, agents and controlling persons (collectively, an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party
may become subject under applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure. If for any reason the foregoing indemnification is unavailable to any Indemnified
Party or insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability. In
addition, Counterparty will reimburse any Indemnified Party for all expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with the investigation of, preparation for or defense or
settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on
behalf of Counterparty. This indemnity shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the
benefit of any permitted assignee of Dealer and Hedging Party. 
 (f) Transfer and Assignment. Neither party may transfer any of its
rights or obligations under the Transaction without the prior written consent of the non-transferring party; provided that at any time at which (i) the Equity Percentage exceeds 9.0% or the Rights Agreement Equity Percentage exceeds 18%
(either such condition, and “Excess Ownership Position”), or (ii) a Hedging Disruption has occurred and is continuing, if Dealer, in the discretion of Dealer or the Calculation Agent, is unable to effect a transfer or
assignment to a third party after using its commercially reasonable efforts (and, in the event of a Hedging Disruption, after attempting to effect such transfer or assignment for five consecutive Scheduled Trading Days) on pricing terms reasonably
acceptable to Dealer and the Calculation Agent such that an Excess Ownership Position or a Hedging Disruption, as the case may be, no longer exists, Dealer or the Calculation Agent may designate any Scheduled Trading Day as an Early Termination Date
with respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership Position or Hedging Disruption, as the case may be, no longer exists. In the event that Dealer or the Calculation Agent so
designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section 8(c) of this Confirmation as if (i) an Early Termination Date
had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be the sole Affected Party with respect to such partial termination and (iii) such portion of the
Transaction shall be the only Terminated Transaction. In the event that a Hedging Disruption has occurred, the Calculation Agent may also adjust one or more terms of the Transaction to account for the difference in the economic position in respect
of an option transaction with terms matching that of the Transaction (an “Equivalent Transaction”) of a hypothetical dealer who is fully hedged in respect of such Equivalent Transaction and a hypothetical dealer hedging such
Equivalent Transaction with respect to whom a Hedging Disruption has occurred to the same extent and for the same duration as such Hedging Disruption with respect to Dealer and the Transaction. The “Equity Percentage” as of any day
is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates subject to aggregation with Dealer, for purposes of the “beneficial ownership” test under
Section 13 of the Exchange Act (collectively, “Dealer Group”) and all persons who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer and (v) 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 (collectively, “Hedging Party Group”) and all persons who may form a
“group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act with Hedging Party “beneficially own”), beneficially own (within the meaning of Section 13 of the Exchange Act) without duplicating on such day and
(B) the denominator of which is the number of Shares outstanding on such day. “Hedging Disruption” has the meaning set forth in Section 12.9(a)(v) of the Equity Definitions; provided that Section 12.9(a)(v) of
the Equity Definitions shall be amended by inserting at the end of clause (A) thereof the following phrase: “(or a Hedging Party Related Transaction).” The “Rights Agreement Equity Percentage” as of any day is the
fraction, expressed as percentage, (A) the numerator of which is the number of Shares that Dealer, together with all of its Affiliates and Associates (each as defined in the Rights Agreement between Counterparty and Stocktrans, Inc., as Rights
Agent, dated September 10, 1998 (the “Rights Agreement”)) (collectively, the “Rights Agreement 

  

 17 

 
Dealer Group”), Beneficially Own (as defined in the Rights Agreement) on such day and (B) the denominator of which is the number of Shares
outstanding on such day. Dealer will use commercially reasonable efforts, and will use commercially reasonable efforts to cause other members of the Dealer Group and the Rights Agreement Dealer Group, in consultation with counsel as to legal
and regulatory issues, to hedge its exposure to the Transaction and to manage its other positions through the use of cash-settled swaps or other derivative instruments to the extent necessary to avoid the occurrence of an Excess Ownership Position.
Counterparty may transfer or assign its rights and obligations hereunder and under the Agreement, in whole or in part, to any party with the consent of Dealer and GS, such consent not to be unreasonably withheld. Notwithstanding any other provision
of this Confirmation to the contrary requiring or allowing Dealer to receive or deliver any Shares, Dealer may designate any of its affiliates to receive or deliver such Shares and otherwise perform Dealer’s obligations in respect of the
Transaction and any such designee may assume such obligation. Dealer shall be discharged of its obligation hereunder only to the extent of any such performance. 
 (g) Staggered Settlement. If, as of any Exchange Business Day during the period from the relevant Conversion Date to the related Settlement Date, the Staggered Settlement Equity Percentage is greater than 9.0%
or either the Rights Agreement Staggered Settlement Equity Percentage or the Hedging Party Rights Agreement Staggered Settlement Equity Percentage is greater than 18%, Dealer may, by notice to Counterparty prior to any Settlement Date (a
“Nominal Settlement Date”), elect to deliver the Shares on one or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows: 
 (i) in such notice, Dealer will specify to Counterparty the related Staggered Settlement Dates (each of which will be on or prior to the
date that follows such Nominal Settlement Date by 20 VWAP Trading Days, but not prior to the relevant Conversion Date) or delivery times and how it will allocate the Shares it is required to deliver under “Delivery Obligation” (above)
among the Staggered Settlement Dates or delivery times; and 
 (ii) the aggregate number of Shares that Dealer will deliver to
Counterparty hereunder on all such Staggered Settlement Dates and delivery times will equal the number of Shares that Dealer would otherwise be required to deliver on such Nominal Settlement Date. 
 The “Staggered Settlement Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the
numerator of which is the sum of (i) the number of Shares that Dealer Group for purposes of the “beneficial ownership” Test under Section 13 of the Exchange Act and all persons who may form a “group” (within the meaning
of Rule 13d-5(b)(1) under the Exchange Act) with Dealer Group and Hedging Party, and any of its affiliates subject to aggregation with Hedging Party for purposes of the “beneficial ownership” Test under Section 13d-5(b)(1) under the
Exchange Act with Hedging Party “beneficially own” (within the meaning of Section 13 of the Exchange Act) without duplication on such day, other than any Shares so owned as a hedge of the Transaction or the Hedging Party Related
Transaction, and (ii) the Number of Shares hereunder and (B) the denominator of which is the number of Shares outstanding on such day. 
 The “Rights Agreement Staggered Settlement Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the sum of (i) the number of Shares that
the Rights Agreement Dealer Group (as defined below) Beneficially Owns (as defined in the Rights Agreement) on such day, other than Shares so Beneficially Owned as a hedge of the Transaction or the Hedging Party Related Transaction, and
(ii) the Number of Shares hereunder and (B) the denominator of which is the number of Shares outstanding on such day. 
 The “Hedging Party Rights Agreement Staggered Settlement Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the sum of (i) the number of Shares that Hedging
Party, together with all of its Affiliates and Associates (each as defined in the Rights Agreement) Beneficially Owns (as defined in the Rights Agreement) on such day, other than Shares so Beneficially Owned as a hedge of the Hedging Party Related
Transaction, and (ii) the Number of Shares hereunder and (B) the denominator of which is the number of Shares outstanding on such day. 
 (h) Agreement in Respect of Termination Amounts. In determining any amounts payable in 

  

 18 

 
respect of the termination or cancellation of the Transaction pursuant to Section 6 of the Agreement or Article 12 of the Equity Definitions, the
Calculation Agent shall make such determination without regard to (i) changes to costs of funding, stock loan rates or expected dividends, or (ii) losses or costs incurred by Dealer or Hedging Party in connection with terminating,
liquidating or re-establishing any hedge related to the Transaction (or any gain resulting from any of them). 
 (i) Disclosure.
Effective from the date of commencement of discussions concerning the Transaction, Counterparty and each of its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and
tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to Counterparty relating to such tax treatment and tax structure. 
 (j) No Set-off. The provisions of Section 2(c) of the Agreement shall not apply to the Transaction. Each party waives any and all rights it
may have to set-off delivery or payment obligations it owes to the other party under the Transaction against any delivery or payment obligations owed to it by the other party, whether arising under the Agreement, under any other agreement between
parties hereto, by operation of law or otherwise. 
 (k) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not
intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties agree that the preceding sentence shall not
apply at any time other than during Counterparty’s bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations under this Confirmation or the Agreement. 
 (l) Early Unwind. In the event the sale by Counterparty of the Convertible Notes is not consummated with the Underwriters pursuant to the
Underwriting Agreement for any reason by the close of business in New York on March 26, 2007(or such later date as agreed upon by the parties, which in no event shall be later than March 30, 2007) (March 26, 2007 or such later date being
the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”), on the Early Unwind Date and the Transaction and all of the respective rights and obligations of Dealer and Counterparty
thereunder shall be cancelled and terminated. Following such termination and cancellation, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations
or liabilities of either party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date. Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind, all
obligations with respect to the Transaction shall be deemed fully and finally discharged. 
 (m) Early Termination or Cancellation.
Notwithstanding anything to the contrary in the Equity Definitions or the Agreement, to the extent that Dealer would otherwise have the right under the Equity Definitions or the Agreement to elect to cancel the Transaction, to designate an Early
Termination Date in respect of the Transaction or to determine any amount due upon the cancellation or early termination of the Transaction, the Calculation Agent shall make such election, designation or determination, as the case may be, in place
of Dealer. 
 (n) 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. 
 (o) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE). 
 (p) Counterparts. This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. 
 9. Arbitration. 
  

 19 

 (a) All parties to this Confirmation are giving up the right to sue each other in court, including the
right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed. 
 (b) Arbitration awards
are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited. 
 (c)
The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings. 
 (d) The arbitrators do not have to explain the reason(s) for their award. 
 (e) The panel of
arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry, unless Counterparty is a member of the organization sponsoring the arbitration facility, in which case all arbitrators may be
affiliated with the securities industry. 
 (f) The rules of some arbitration forums may impose time limits for bringing a claim in
arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court. 
 (g) The rules of the arbitration
forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Confirmation. 
 (h) Counterparty agrees
that any and all controversies that may arise between Counterparty and Dealer, including, but not limited to, those arising out of or relating to the Agreement or the Transaction hereunder, shall be determined by arbitration conducted before The New
York Stock Exchange, Inc. (“NYSE”) or NASD Dispute Resolution (“NASD-DR”), or, if the NYSE and NASD-DR decline to hear the matter, before the American Arbitration Association, in accordance with their arbitration rules then in
force. The award of the arbitrator shall be final, and judgment upon the award rendered may be entered in any court, state or federal, having jurisdiction. 
 (i) No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action or who
is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) Counterparty
is excluded from the class by the court. 
 (j) Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of
any rights under this Confirmation except to the extent stated herein. 
  

 20 

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

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

  

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

	Name:	 	Michel de Rosen
	Title:	 	President and CEO

  

 21

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