Document:

exv10w1

Exhibit 10.1

	 	 	 

	 

	 	Barclays Bank PLC, 5
	 

	 	The North Colonnade
	 

	 	Canary Wharf, London E14 4BB
	 

	 	Facsimile:+44(20)77736461
	 

	 	Telephone: +44 (20) 777 36810
	 
	 	 
	 

	 	c/o Barclays Capital Inc.
	 

	 	as Agent for Barclays Bank PLC
	 

	 	745 Seventh Ave
	 

	 	New York, NY 10019
	 

	 	Telephone: +1 212 412 4000

	 	 	 

	DATE:

	 	March 29, 2011
	 
	 	 
	TO:

	 	InterDigital, Inc.
	ATTENTION:

	 	Scott McQuilkin
	TELEPHONE:

	 	(+1) 610-878-1850
	FACSIMILE:

	 	(+1) 610-878-7844
	 
	 	 
	FROM:

	 	Barclays Capital Inc., acting as Agent for Barclays Bank PLC
	ATTENTION:

	 	Paul Robinson
	TELEPHONE:

	 	(+1) 212-526-0111
	FACSIMILE:

	 	(+1) 917-522-0458
	 
	 	 
	SUBJECT:

	 	Bond Hedge Transaction

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions
of the Transaction entered into between Barclays Bank PLC (“Barclays”), through its agent Barclays
Capital Inc. (the “Agent”), and InterDigital, Inc. (“Counterparty”) on the Trade Date specified
below (the “Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the
Master Agreement specified below. Barclays is regulated by the Financial Services Authority.
Barclays Bank PLC is not a member of the Securities Investor Protection Corporation (“SIPC”).

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms used
herein have the meanings assigned to them in the Indenture to be dated on or about April 4, 2011
between Counterparty and The Bank of New York Mellon Trust Company, N.A., as trustee (as may be
amended, modified or supplemented from time to time, but only if such amendment, modification or
supplement is consented to by Barclays in writing, the “Indenture”) relating to USD200,000,000
principal amount of 2.50% senior convertible notes due 2016 (the “Convertible Notes”) issued by
Counterparty. In the event of any inconsistency between the Indenture and this Confirmation, this
Confirmation shall govern. For the avoidance of doubt, references herein to sections of the
Indenture are based on the draft of the Indenture most recently reviewed by the parties at the time
of this Confirmation. If any relevant sections of the Indenture are changed, added, or renumbered
following execution of this Confirmation, the parties will amend this Confirmation in good faith to
preserve the economic intent of the parties.

1

 

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.

1. This Confirmation evidences a complete and binding agreement between Barclays and Counterparty
as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to, an agreement in the form of the ISDA 1992 Master
Agreement (Multicurrency – Cross Border) as if Barclays and Counterparty had executed an agreement
(the “Agreement”) in such form (without any Schedule but with the elections set forth in this
Confirmation) on the Trade Date. In the event of any inconsistency between provisions of the
Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction.
The parties hereby agree that no Transaction other than the Transaction to which this Confirmation
relates shall be governed by the Agreement.

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

	 	 	 

	General Terms:
	 	 
	 
	 	 
	Trade Date:

	 	March 29, 2011
	 
	 	 
	Option Style:

	 	Modified American, as described below under “Procedures for
Exercise”.
	 
	 	 
	Option Type:

	 	Call.
	 
	 	 
	Buyer:

	 	Counterparty.
	 
	 	 
	Seller:

	 	Barclays.
	 
	 	 
	Shares:

	 	The common stock, par value USD0.01 per share, of Counterparty
(Ticker symbol “IDCC”).
	 
	 	 
	Number of Options:

	 	As of the Trade Date, 200,000 (as reduced from time to time as of
each Potential Exercise Date by the number of Exercisable Options
for such Potential Exercise Date).
	 
	 	 
	Option Entitlement:

	 	As of any date, a number of Shares per Option equal to the
“Conversion Rate” (as defined in the Indenture) as of such date,
but without regard to any adjustments to the “Conversion Rate”
pursuant to Section 10.03 or to Section 10.04(f) of the
Indenture).
	 
	 	 
	Strike Price:

	 	As provided in Schedule A to this Confirmation.
	 
	 	 
	Premium:

	 	As provided in Schedule A to this Confirmation.
	 
	 	 
	Premium Payment Date:

	 	The closing date for the initial issuance of the Convertible Notes.
	 
	 	 
	Exchange:

	 	The NASDAQ Global Select Market.
	 
	 	 
	Related Exchange(s):

	 	All Exchanges.
	 
	 	 
	Calculation Agent:

	 	Barclays. All determinations made by the Calculation Agent shall
be made in good faith and in a commercially reasonable manner.
Following any determination or calculation by the Calculation
Agent hereunder, upon a written request by Counterparty, the
Calculation Agent will provide to Counterparty by e-mail to the
e-mail address provided by Counterparty in such written request a
report (in a commonly used file format for the storage and
manipulation of financial data) displaying in reasonable detail
such determination or calculation, including, where applicable, a
description of the methodology and data applied, it being
understood that the Calculation Agent shall not be obligated to
disclose any proprietary models used by it for such determination
or calculation.

2

 

	 	 	 

	Procedures for Exercise:
	 	 
	 
	 	 
	Potential Exercise Dates:

	 	Notwithstanding anything to the contrary in section
3.1(b) of the Equity Definitions, “Potential Exercise
Date” shall mean each Conversion Date.
	 
	 	 
	Conversion Dates:

	 	Each “Conversion Date” (as defined in the Indenture).
	 
	 	 
	Exercisable Options:

	 	In respect of each Conversion Date, a number of Options
equal to the number of Convertible Notes in denominations
of USD1,000 principal amount surrendered for conversion
on such Conversion Date in accordance with the terms of
the Indenture, subject to “Notice of Exercise” below, but
no greater than the Number of Options as of the date
immediately preceding such Conversion Date.
	 
	 	 
	Expiration Date:

	 	Notwithstanding anything to the contrary in section
3.1(f) of the Equity Definitions, “Expiration Date” shall
mean the earlier of (x) the last day on which any
Convertible Notes remain outstanding and (y) the maturity
date of the Convertible Notes.
	 
	 	 
	Multiple Exercise:

	 	Applicable, as provided under “Exercisable Options” above.
	 
	 	 
	Automatic Exercise:

	 	Applicable, subject to “Notice of Exercise” below.

3

 

	 	 	 

	Notice of Exercise:

	 	Notwithstanding anything to the contrary in the Equity
Definitions, in order to exercise any Exercisable
Options, Counterparty must notify Barclays in writing
prior to 5:00 p.m., New York City time, on the day that
is at least two “Scheduled Trading Days” (as defined in
the Indenture) prior to the first day of the applicable
“Conversion Period” (as defined in the Indenture) in
respect of the Convertible Notes being converted on the
Conversion Date relating to the relevant Exercise Date
(the “Notice Deadline”) of (i) the number of Options
being exercised on such Exercise Date; (ii) the Exercise
Date; (iii) the scheduled commencement date of the
“Conversion Period” and (iv) the scheduled settlement
date under the Indenture for the relevant Convertible
Notes converted on the Conversion Date corresponding to
such Exercise Date; provided that, notwithstanding the
foregoing, such notice (and the related automatic
exercise of such Options) shall be effective if given
after the relevant Notice Deadline (but only in respect
of any Options relating to Convertible Notes with a
Conversion Date occurring prior to the Free
Convertibility Date (as defined below)), but prior to
5:00 p.m. (New York City time) on the fifth “Trading Day”
(as defined in the Indenture) of such Conversion Period,
in which case the Calculation Agent shall have the right
to adjust the Settlement Amount (as defined below) as
appropriate to reflect the additional costs (including,
but not limited to, hedging mismatches and market losses)
and reasonable expenses incurred by Barclays or its
affiliates in connection with hedging activities
(including the unwinding of any hedge position) as a
result of its not having received such notice prior to
the Notice Deadline; and provided further that in respect
of Convertible Notes converted during the period
beginning on, and including the 25th “Scheduled Trading
Day” (as defined in the Indenture) prior to the “Maturity
Date” (as defined in the Indenture) for such Convertible
Notes (such 25th “Scheduled Trading Day”, the
“Free Convertibility Date”) and ending on the first
“Scheduled Trading Day” immediately preceding the
“Maturity Date”, the Notice Deadline shall be 5:30 p.m.,
New York City time, on the first “Scheduled Trading Day”
immediately preceding the “Maturity Date”.
	Settlement Terms:
	 	 
	 
	 	 
	Net Share Settlement:

	 	In respect of an Exercise Date occurring
on a Conversion Date, 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, Barclays
shall deliver to Counterparty on the
related Settlement Date, with respect to a
number of Options exercised on such
Exercise Date, a number of Shares equal to
the aggregate number of Shares that
Counterparty is obligated to deliver to
the holder(s) of the related Convertible
Notes converted on such Conversion Date
pursuant to Section 10.02(b) of the
Indenture (except that such number of
Shares shall be determined without taking
into consideration any rounding pursuant
to Section 10.02(h) of the Indenture and
shall be rounded down to the nearest whole
number, and cash shall be delivered in
lieu of fractional Shares, if any,
resulting from such rounding) (the
“Settlement Amount”); provided that such
obligation shall be determined excluding
any Shares that Counterparty is obligated
to deliver to holder(s) of the Convertible
Notes as a result of any adjustments to
the Conversion Rate as set forth in
Sections 10.03 or

4

 

	 	 	 

	 

	 	10.04(f) of the
Indenture; provided further that if such
exercise relates to the conversion of
Convertible Notes in connection with which
holders thereof are entitled to receive
additional Shares pursuant to the
adjustments to the Conversion Rate set
forth in Section 10.03 of the Indenture,
then, notwithstanding the foregoing, the
Settlement Amount shall include such
additional Shares, except that the
Settlement Amount shall be capped so that
the value of the Settlement Amount per
Option (with the value of any Shares
included in the Settlement Amount
determined by the Calculation Agent using
the VWAP (as defined in the Indenture) on
the last day of the relevant Conversion
Period) does not exceed the amount as
determined by the Calculation Agent that
would be payable by Barclays 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, (x) the Number
of Options shall be deemed to be equal to
the number of Options exercised on such
Exercise Date and (y) such amount payable
will be determined as if Section 10.03 of
the Indenture were deleted) was the sole
Affected Transaction and Counterparty was
the sole Affected Party (determined
without regard to paragraph 5(k) below);
	 
	 	 
	 

	 	provided, further, that if Counterparty is
permitted to or required to exercise
discretion under the terms of the
Indenture with respect to any
determination, calculation or adjustment
relevant to conversion of the Convertible
Notes including, but not limited to, the
volume-weighted average price of the
Shares (but, for the avoidance of doubt,
other than for determinations referred to
under the heading “Method of Adjustment”
below), Counterparty shall consult with
Barclays with respect thereto.
	 
	 	 
	Notice of Delivery Obligation:

	 	 No later than the “Scheduled Trading Day”
immediately following the last day of the
“Conversion Period” (as defined in the
Indenture), Counterparty shall give
Barclays notice of the final number of
Shares comprising the Settlement Amount;
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” above in
any way.
	 
	 	 
	Settlement Date:

	 	In respect of any Exercise Date, the
settlement date for the Shares to be
delivered in connection with the related
Convertible Notes under the terms of the
Indenture; provided that the Settlement
Date shall not be prior to the Clearance
System Business Day immediately following
the date on which Counterparty gives
notice to Barclays of such Settlement
Date.
	 
	 	 
	Settlement Currency:

	 	USD.
	 
	 	 
	Other Applicable Provisions:

	 	The provisions of Sections 9.4 (except
that “Settlement Date” shall be as defined
above, unless a Settlement Disruption
Event prevents delivery of such Shares on
that date), 9.8, 9.9, 9.10, 9.11 and 9.12
of the Equity Definitions shall be
applicable; provided that the
Representation and Agreement contained in
Section 9.11 of the Equity Definitions
shall be modified by excluding any
restrictions, obligations, limitations or
requirements under applicable securities
laws as a result of the fact that
Counterparty is the issuer of the Shares.

5

 

	 	 	 

	Restricted Certificated
Shares:

	 	Notwithstanding anything to the contrary
in the Equity Definitions, Barclays may,
in whole or in part, deliver Shares in
certificated form representing the
Settlement Amount to Counterparty in lieu
of delivery through the Clearance System.
	 
	 	 
	Share Adjustments:
	 	 
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment, which means
that, notwithstanding Section 11.2(c) of the
Equity Definitions (and, for the avoidance of
doubt, in lieu of any adjustments pursuant to
such section), upon the occurrence of any
Potential Adjustment Event (for the avoidance
of doubt, other than an increase in the
“Conversion Rate” pursuant to Sections 10.03
and 10.04(f) of the Indenture), the
Calculation Agent will make a corresponding
adjustment to any one or more of the Strike
Price, Number of Options, the Option
Entitlement and any other variable relevant
to the exercise, settlement, payment or other
terms of the Transaction. Counterparty
agrees that it will notify Barclays prior to
the effectiveness of any such adjustment and,
to the extent such adjustment requires an
exercise of discretion by Counterparty under
the terms of the Indenture, it shall exercise
such discretion in good faith and in a
commercially reasonable manner and promptly
provide the Calculation Agent with any
additional information it reasonably requests
about the Counterparty’s calculations and
methodology for such adjustment.
	 
	 	 
	Potential Adjustment Events:

	 	Notwithstanding Section 11.2(e) of the Equity
Definitions, a “Potential Adjustment Event”
means an occurrence of any event or
condition, as set forth in Sections 10.04(a),
(b), (c), (d) and (e) and Section 10.08 of
the Indenture, that would result in an
adjustment to the “Conversion Rate” (as
defined in the Indenture) of the Convertible
Notes; provided that in no event shall there
be any adjustment hereunder as a result of an
adjustment to the “Conversion Rate” pursuant
to Section 10.03 or Section 10.04(f) of the
Indenture.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Merger Events:

	 	Notwithstanding Section 12.1(b)
of the Equity Definitions, a
“Merger Event” means the
occurrence of any event or
condition set forth in Section
10.05 of the Indenture.
	 
	 	 
	Notice of Merger
Consideration:

	 	Upon the occurrence of a Merger
Event that causes the Shares to
be converted into or exchanged
for more than a single type of
consideration (determined based
in part upon the form of
election of the holders of the
Shares), Counterparty shall
promptly notify the Calculation
Agent in writing of the types
and amounts of consideration
that holders of Shares have
affirmatively elected to receive
upon consummation of such Merger
Event; provided that in no event
shall the date of such
notification be later than the
date on which such Merger Event
is consummated.

6

 

	 	 	 

	Consequences of Merger Events:

	 	 Notwithstanding Section 12.2 of
the Equity Definitions (and, for
the avoidance of doubt, in lieu
of any adjustments or other
consequences pursuant to such
section), upon the occurrence of
a Merger Event, with respect to
any adjustment made or effective
under the terms of the Indenture
as a result of such Merger Event
pursuant to Section 10.05 of the
Indenture, the Calculation Agent
shall make a corresponding
adjustment in respect of such
adjustment under the Indenture
to any one or more of the nature
of the Shares, the Strike Price,
the Number of Options, the
Option Entitlement and any other
variable relevant to the
exercise, settlement, payment or
other terms of the Transaction,
as applicable; provided,
however, that such adjustment
shall be made without regard to
any adjustment to the
“Conversion Rate” (as defined in
the Indenture) for the issuance
of additional shares as set
forth in Section 10.03 or
Section 10.04(f) of the
Indenture.
	 
	 	 
	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:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable; provided that Section 12.9(a)(ii) of
the Equity Definitions is hereby amended by (i)
replacing the phrase “the interpretation” in the
third line thereof with the phrase “, or public
announcement of, the formal or informal
interpretation” and (ii) by replacing the word
“Shares” where it appears in clause (X) thereof
with the words “Hedge Position”; and provided
further that Barclays shall not exercise its
rights under Section 12.9(b)(i) with respect to
a Change in Law referred to in clause (Y) of
Section 12.9(a)(ii) of the Equity Definitions
except to the extent it is exercising its right
to terminate or adjust transactions as a result
of a “Change in Law” event with respect to other
similarly situated customers.
	 
	 	 
	 

	 	The parties agree that, for the avoidance of
doubt, for purposes of Section 12.9(a)(ii) of
the Equity Definitions, “any applicable law or
regulation” shall include the Dodd-Frank Wall
Street Reform and Consumer Protection Act of
2010, any rules and regulations promulgated
thereunder and any similar law or regulation,
and the consequences specified in Section
12.9(b)(i) of the Equity Definitions (as
modified below) shall apply to any Change in Law
arising from any such act, rule or regulation.
	 
	 	 
	Failure to Deliver:

	 	Not Applicable.
	 
	 	 
	Insolvency Filing:

	 	Applicable.

7

 

	 	 	 

	Hedging Disruption:

	 	Applicable; provided that
	 
	 	 
	 

	 	(i) Section 12.9(a)(v) of the Equity Definitions
is hereby modified by inserting the following
three sentences at the end of such Section:
	 
	 	 
	 

	 	“Such inability described in phrases (A) or (B)
above shall not constitute a “Hedging
Disruption” unless (x) such inability does not
result from factors particular to Hedging Party
(such as Hedging Party’s creditworthiness or
financial position, or particular actions or
transactions undertaken by the Hedging Party
unrelated to the hedging of the Transaction) and
(y) such inability will result in continued
performance by the Hedging Party under the
Transaction being commercially unreasonable or
commercially impracticable. For the avoidance
of doubt, the term “equity price risk” shall be
deemed to include, but shall not be limited to,
stock price and volatility risk. And, for the
further avoidance of doubt, any such
transactions or assets referred to in phrases
(A) or (B) above must be available on
commercially reasonable pricing terms.”
	 
	 	 
	 

	 	(ii) Section 12.9(b)(iii) of the Equity
Definitions is hereby amended by inserting in
the third line thereof, after the words “to
terminate the Transaction”, the words “or a
portion of the Transaction affected by such
Hedging Disruption”.
	 
	 	 
	Hedging Party:

	 	Barclays or an affiliate of Barclays that is
involved in the hedging of the Transaction for
all applicable Additional Disruption Events.
	 
	 	 
	Determining Party:

	 	Barclays for all applicable Extraordinary Events.

	 	 	 
	Acknowledgments:
	 	 
	 
	 	 
	Non-Reliance:

	 	Applicable.
	 
	 	 
	Agreements and Acknowledgments Regarding Hedging Activities:

	 	Applicable.
	 
	 	 
	Additional Acknowledgments:

	 	Applicable.

3. Mutual Representations, Warranties and Agreements.

Each of Barclays and Counterparty represents and warrants to, and agrees with, the other party
that:

	 	(a)	 	Commodity Exchange Act. It is an “eligible contract participant” within the
meaning of Section 1a(12) of the U.S. Commodity Exchange Act, as amended (the “CEA”).
The Transaction has been subject to individual negotiation by the parties. The
Transaction has not been executed or traded on a “trading facility” as defined in
Section 1a(33) of the CEA.
	 
	 	(b)	 	Securities Act. It is a “qualified institutional buyer” as defined in Rule
144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or an
“accredited investor” as defined in Section 2(a)(15)(ii) of the Securities Act.
	 
	 	(c)	 	ERISA. The assets used in the Transaction (1) are not assets of any “plan” (as
such term is defined in Section 4975 of the U.S. Internal Revenue Code (the “Code”))
subject to Section 4975 of the Code or any “employee benefit plan” (as such term is
defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as
amended (“ERISA”)) subject to Title I of ERISA, and (2) do not constitute “plan assets”
within the meaning of Department of Labor Regulation 2510.3-101, 29 CFR Section
2510-3-101.

8

 

	4.	 	Representations, Warranties and Agreements of Counterparty.

In addition to the representations and warranties in the Agreement and those contained elsewhere
herein, Counterparty further represents, warrants and agrees that:

	 	(a)	 	the representations and warranties of Counterparty set forth in Section 2 of
the Purchase Agreement dated as of the Trade Date between Counterparty and Barclays
Capital Inc. (the “Purchase Agreement”), are true and correct and are hereby deemed to
be repeated to Barclays as if set forth herein;
	 
	 	(b)	 	Counterparty is not as of the Trade Date or the Premium Payment Date, and shall
not be after giving effect to the transactions contemplated hereby, “insolvent” (as
such term is defined in Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the
United States Code) (the “Bankruptcy Code”)) and on each such date Counterparty would
be able to purchase a number of Shares equal to the Number of Shares in compliance with
the laws of the jurisdiction of Counterparty’s incorporation or organization;
	 
	 	(c)	 	Counterparty shall promptly provide written notice to Barclays upon obtaining
knowledge of the occurrence of any event that would constitute an Event of Default, a
Potential Event of Default, a Potential Adjustment Event, a Merger Event or any other
Extraordinary Event; provided, however, that should Counterparty be in possession of
material non-public information regarding Counterparty, Counterparty shall not
communicate such information to Barclays;
	 
	 	(d)	 	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;
	 
	 	(e)	 	Counterparty has (and shall at all times during the Transaction have) the
capacity and authority to invest directly in the Shares underlying the Transaction and
has not entered into the Transaction with the intent to avoid any regulatory filings;
	 
	 	(f)	 	Counterparty’s financial condition is such that it has no need for liquidity
with respect to its investment in the Transaction and no need to dispose of any portion
thereof to satisfy any existing or contemplated undertaking or indebtedness;
	 
	 	(g)	 	Counterparty’s investments in and liabilities in respect of the Transaction,
which it understands are not readily marketable, are not disproportionate to its net
worth, and Counterparty is able to bear any loss in connection with the Transaction,
including the loss of its entire investment in the Transaction;
	 
	 	(h)	 	Counterparty understands, agrees and acknowledges that Barclays has no
obligation or intention to register the Transaction under the Securities Act, any state
securities law or other applicable federal securities law;
	 
	 	(i)	 	each of Counterparty’s filings under the Securities Act, the Exchange Act, or
other applicable securities laws that are required to be filed have been filed and
that, as of the respective dates thereof and as of the date of this representation,
such filings when considered as a whole (with the more recent such filings deemed to
amend inconsistent statements contained in any earlier such filings) do not contain any
misstatement of a material fact or any omission of a material fact required to be
stated therein or necessary to make the statements made therein, in the light of the
circumstances under which they were made, not misleading;
	 
	 	(j)	 	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;

9

 

	 	(k)	 	Counterparty understands, agrees and acknowledges that no obligations of
Barclays to it hereunder shall be entitled to the benefit of deposit insurance and that
such obligations shall not be guaranteed by any affiliate of Barclays or any
governmental agency;
	 
	 	(l)	 	(A) Counterparty is acting for its own account, and it has made its own
independent decisions to enter into the Transaction and as to whether the Transaction
is appropriate or proper for it based upon its own judgment and upon advice from such
advisers as it has deemed necessary, (B) Counterparty is not relying on any
communication (written or oral) of Barclays or any of its affiliates as investment
advice or as a recommendation to enter into the Transaction (it being understood that
information and explanations related to the terms and conditions of the Transaction
shall not be considered investment advice or a recommendation to enter into the
Transaction) and (C) no communication (written or oral) received from Barclays or any
of its affiliates shall be deemed to be an assurance or guarantee as to the expected
results of the Transaction;
	 
	 	(m)	 	without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Barclays is not making any representations or warranties
with respect to the treatment of the Transaction under any accounting standards
including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging,
ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and
Hedging — Contracts in Entity’s Own Equity (or any successor issue statements) or
under FASB’s Liabilities & Equity Project;
	 
	 	(n)	 	Counterparty is not entering into the Transaction for the purpose of (i)
creating actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or (ii) raising or depressing or otherwise
manipulating the price of the Shares (or any security convertible into or exchangeable
for the Shares) or otherwise in violation of the Exchange Act;
	 
	 	(o)	 	Counterparty has not entered into any obligation that would contractually limit
it from effecting Net Share Settlement under the Transaction and it agrees not to enter
into any such obligation during the term of the Transaction; and
	 
	 	(p)	 	Counterparty shall deliver to Barclays an opinion of counsel, dated as of the
Premium Payment Date and reasonably acceptable to Barclays in form and substance, with
respect to the matters set forth in Section 3(a) of the Agreement, containing customary
exceptions, assumptions and qualifications, in each case reasonably acceptable to
Barclays.
	 
	 	(q)	 	No Pennsylvania state or local law, rule, regulation or regulatory order
applicable to the Shares would give rise to any reporting, consent, registration or
other requirement (including without limitation a requirement to obtain prior approval
from any person or entity) as a result of Barclays or its affiliates owning or holding
(however defined) Shares in connection with Barclays’ obligations under the
Transaction, except as previously disclosed by Counterparty to Barclays.
	 
	 	(r)	 	For purposes of Section 4(a)(i) and (ii) of the Agreement, (i) the Counterparty
agrees to deliver to Barclays one duly executed and completed United States Internal
Revenue Service Form W-9 (or successor thereto) and (ii) Barclays agrees to deliver to
the Counterparty one duly executed and completed United States Internal Revenue Form
W-8ECI (or successor thereto).

	5.	 	Other Provisions.

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

10

 

	 	(b)	 	Additional Termination Event. If (i) an Amendment Event occurs, (ii) a
Repayment Event occurs or (iii) an “Event of Default” with respect to Counterparty
under the terms of the Convertible Notes as set forth in Section 6.01 of the Indenture
occurs and the Convertible Notes are declared immediately due and payable under the
terms of the Indenture, an Additional Termination Event shall occur in respect of which
(A) Counterparty shall be the sole Affected Party and the Transaction shall be the sole
Affected Transaction and (B) Barclays shall be the party entitled to designate an Early
Termination Date pursuant to Section 6(b) of the Agreement; provided that in the case
of a Repayment Event the Transaction shall be subject to termination only in respect of
the number of Convertible Notes that cease to be outstanding in connection with or as a
result of such Repayment Event.
	 
	 	 	 	“Amendment Event” means that Counterparty amends, modifies, supplements or obtains a
waiver with respect to (i) 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 rate, conversion
settlement dates or conversion conditions), or (ii) 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 written consent of
Barclays, such consent not to be unreasonably withheld.
	 
	 	 	 	“Repayment Event” means that (A) any Convertible Notes are repurchased (whether in
connection with or as a result of a change of control, howsoever defined, or for any
other reason) by Counterparty or any of its subsidiaries, (B) any Convertible Notes
are delivered to Counterparty or any of its subsidiaries in exchange for delivery of
any property or assets of Counterparty or any of its subsidiaries (howsoever
described), (C) any principal of any of the Convertible Notes is repaid prior to the
final maturity date of the Convertible Notes (whether following acceleration of the
Convertible Notes or otherwise), or (D) any Convertible Notes are exchanged by or
for the benefit of the holders thereof for any other securities of Counterparty or
any of its affiliates (or any other property, or any combination thereof) pursuant
to any exchange offer or similar transaction; provided that, in the case of clause
(B) and clause (D), conversions of the Convertible Notes pursuant to the terms of
the Indenture as in effect on the date hereof shall not be Repayment Events.
	 
	 	(c)	 	Dividends. If at any time during the period from and including the Effective
Date, to but excluding the Expiration Date, (i) an ex-dividend date for a regular
quarterly cash dividend occurs with respect to the Shares (an “Ex-Dividend Date”), and
that dividend is less than the Regular Dividend on a per Share basis or (ii) if no
Ex-Dividend date for a regular quarterly cash dividend occurs with respect to the
Shares in any quarterly dividend period of Counterparty, then the Calculation Agent
will make a corresponding adjustment to any one or more of the Strike Price, Number of
Options, Option Entitlement and/or any other variable relevant to the exercise,
settlement or payment for the Transaction to preserve the fair value of the Options to
Barclays after taking into account such dividend or lack thereof. “Regular Dividend”
shall mean USD 0.10 per Share per quarter. Upon any adjustment to the Dividend
Threshold Amount (as defined in the Indenture) for the Convertible Notes pursuant to
Section 10.04(d) or Section 10.05 of the Indenture, the Calculation Agent will make a
corresponding adjustment to the Regular Dividend for the Transaction.
	 
	 	(d)	 	Repurchase Notices. Counterparty shall, on any day on which Counterparty
effects any repurchase of Shares, promptly give Barclays a written notice of such
repurchase (a “Repurchase Notice”) on such day if following such repurchase, the
Options Equity Percentage as determined on such day is (i) equal to or greater than 9%
and (ii) greater by 0.5% than the Options Equity Percentage included in the immediately
preceding Repurchase Notice (or, in the case of the first such Repurchase Notice,
greater than the Options Equity Percentage as of the Trade Date). The “Options Equity
Percentage” as of any day is the fraction (A) the numerator of which is the product of
(x) the sum of the Number of Options and the number of options underlying any
Additional Bond Hedge Transaction between Counterparty and Barclays and (y) the Option

11

 

	 	 	 	Entitlement and (B) the denominator of which is the number of Shares outstanding on
such day. Counterparty agrees to indemnify and hold harmless Barclays and its
affiliates and their respective officers, directors, employees, affiliates,
advisors, agents and controlling persons (each, an “Indemnified Person”) from and
against any and all losses (including losses relating to Barclays’ hedging
activities as a consequence of becoming, or of the risk of becoming, a Section 16
“insider”, including without limitation, any forbearance from hedging activities or
cessation of hedging activities and any losses in connection therewith with respect
to the Transaction), claims, damages, judgments, liabilities and expenses (including
reasonable attorney’s fees), joint or several, which an Indemnified Person may
become subject to, as a result of Counterparty’s failure to provide Barclays with a
Repurchase Notice on the day and in the manner specified in this paragraph, and to
reimburse, within 30 days, upon written request, each of such Indemnified Persons
for any reasonable legal or other expenses incurred in connection with
investigating, preparing for, providing testimony or other evidence in connection
with or defending any of the foregoing. If any suit, action, proceeding (including
any governmental or regulatory investigation), claim or demand shall be brought or
asserted against the Indemnified Person in respect of the foregoing, such
Indemnified Person shall promptly notify Counterparty in writing, and Counterparty,
upon request of the Indemnified Person, shall retain counsel reasonably satisfactory
to the Indemnified Person to represent the Indemnified Person and any others
Counterparty may designate in such proceeding and shall pay the fees and expenses of
such counsel related to such proceeding. Counterparty shall not be liable for any
settlement of any proceeding contemplated by this paragraph that is effected without
its written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, Counterparty agrees to indemnify any Indemnified Person
from and against any loss or liability by reason of such settlement or judgment.
Counterparty shall not, without the prior written consent of the Indemnified Person,
effect any settlement of any pending or threatened proceeding contemplated by this
paragraph that is in respect of which any Indemnified Person is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Person,
unless such settlement includes an unconditional release of such Indemnified Person
from all liability on claims that are the subject matter of such proceeding on terms
reasonably satisfactory to such Indemnified Person. If the indemnification provided
for in this paragraph is unavailable to an Indemnified Person or insufficient in
respect of any losses, claims, damages or liabilities referred to therein, then
Counterparty hereunder, in lieu of indemnifying such Indemnified Person thereunder,
shall contribute to the amount paid or payable by such Indemnified Person as a
result of such losses, claims, damages or liabilities. The remedies provided for in
this paragraph (c) are not exclusive and shall not limit any rights or remedies
which may otherwise be available to any Indemnified Person at law or in equity. The
indemnity and contribution agreements contained in this paragraph shall remain
operative and in full force and effect regardless of the termination of the
Transaction.

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

12

 

	 	 	 	derivative instrument) purchase, offer to purchase, place any bid or limit order
that would effect a purchase of, or commence any tender offer relating to, any
Shares (or an equivalent interest, including a unit of beneficial interest in a
trust or limited partnership or a depository share) or any security convertible into
or exchangeable or exercisable for Shares, except through Barclays.

	 	 	 	(iii) Counterparty agrees that it (A) will not, on any day during any Conversion
Period, make, or permit to be made (to the extent within Counterparty’s reasonable
control), any public announcement (as defined in Rule 165(f) under the Securities
Act) of any Merger Transaction or potential Merger Transaction unless such public
announcement is made prior to the opening or after the close of the regular trading
session on the Exchange for the Shares; (B) shall promptly (but in any event prior
to the next opening of the regular trading session on the Exchange) notify Barclays
following any such announcement that such announcement has been made; and (C) shall
promptly (but in any event prior to the next opening of the regular trading session
on the Exchange) provide Barclays with written notice specifying (i) Counterparty’s
average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three
full calendar months immediately preceding the announcement date that were not
effected through Barclays or its affiliates and (ii) the number of Shares purchased
pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three
full calendar months preceding the announcement date. Such written notice shall be
deemed to be a certification by Counterparty to Barclays that such information is
true and correct. In addition, Counterparty shall promptly notify Barclays of the
earlier to occur of the completion of such transaction and the completion of the
vote by target shareholders. “Merger Transaction” means any merger, acquisition or
similar transaction involving a recapitalization as contemplated by Rule
10b-18(a)(13)(iv) under the Exchange Act.
	 
	 	(f)	 	Regulation M. (x) Counterparty (A) was not on the date on which the offering
of the Convertible Notes was first announced, has not since such date, and is not on
the date hereof, engaged in a distribution, as such term is used in Regulation M under
the Exchange Act, of any securities of Counterparty, other than the distribution of the
Convertible Notes and (B) shall not engage in any “distribution,” as such term is
defined in Regulation M, other than a distribution meeting the requirements of the
exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the
second Exchange Business Day immediately following the Trade Date, and (y)(A) on any
day during any Conversion Period, the Shares or securities that are convertible into,
or exchangeable or exercisable for Shares, are not, and shall not be, subject to a
“restricted period,” as defined in Regulation M and (B) Counterparty shall not engage
in any “distribution,” as such term is defined in Regulation M, other than a
distribution meeting the requirements of the exceptions set forth in sections
101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day
immediately following the last day in such Conversion Period.
	 
	 	(g)	 	Early Unwind. In the event the sale of Convertible Notes is not consummated
with the initial purchaser for any reason by the close of business in New York on April
4, 2011 (or such later date as agreed upon by the parties) (April 4, 2011 or such later
date as agreed upon being the “Early Unwind Date”), the Transaction shall automatically
terminate (the “Early Unwind”), on the Early Unwind Date and (i) the Transaction and
all of the respective rights and obligations of Barclays and Counterparty under the
Transaction shall be cancelled and terminated and (ii) each party shall be released and
discharged by the other party from and agrees not to make any claim against the other
party with respect to any obligations or liabilities of the other party arising out of
and to be performed in connection with the Transaction either prior to or after the
Early Unwind Date; provided that, except to the extent that the Early Unwind Date
occurred as a result of a breach of the Purchase Agreement by Barclays or any of its
affiliates, Counterparty shall reimburse Barclays for any costs or expenses (including
market losses, unless Counterparty agrees to purchase any such Shares at the cost at
which Barclays purchased such Shares) relating to the unwinding of its hedging
activities in connection with the Transaction (including any loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge or
related trading position). The amount of any such reimbursement shall be determined by
Barclays in its sole good faith discretion. Barclays shall notify Counterparty of such
amount and Counterparty shall pay such amount in immediately available funds on the
Early Unwind Date. Barclays and

13

 

	 	 	 	Counterparty represent and acknowledge to the other that, subject to the proviso
included in this paragraph, upon an Early Unwind, all obligations with respect to
the Transaction shall be deemed fully and finally discharged.

	 	(h)	 	Transfer or Assignment. Counterparty may not transfer or assign any of its
rights or obligations under the Transaction without the prior written consent of
Barclays. Notwithstanding any provision of the Agreement to the contrary, Barclays
may, subject to applicable law, freely transfer and assign all of its rights and
obligations under the Transaction without the consent of Counterparty, (x) to any of
its affiliates and (y) solely to the extent required to eliminate an Excess Ownership
Position as provided in the immediately succeeding sentence, to any affiliate and/or
any other recognized dealer in transactions such as the Transaction, where in each
case, the assignee shall have a rating (or whose guarantor shall have a rating) for its
long term, unsecured and unsubordinated indebtedness of A- or better by Standard &
Poor’s Ratings Services or its successor (“S&P”), or A3 or better by Moody’s Investors
Service, Inc. or its successor (“Moody’s”) or, if either S&P or Moody’s ceases to rate
such debt, at least an equivalent rating or better by a substitute rating agency
mutually agreed by Counterparty and Barclays; provided that in the case of clause (x),
Counterparty will not, as a result of such transfer and/or assignment, be required
under the Agreement or this Confirmation to (i) pay to the transferee or assignee an
amount greater than the amount that it would have been required to pay to Barclays in
the absence of such transfer or assignment or (ii) receive from the transferee or
assignee an amount less than the amount that Counterparty would have received from
Barclays in the absence of such transfer or assignment, in each case based on the
circumstances in effect on the date of such transfer. Barclays shall provide
Counterparty with written notice of any assignment pursuant to clause (x).
	 
	 	 	 	If at any time at which (1) the Equity Percentage exceeds 9.0% or (2) Barclays,
Barclays Group (as defined below) or any person whose ownership position would be
aggregated with that of Barclays or Barclays Group (Barclays, Barclays Group or any
such person, a “Barclays Person”) under any state or federal bank holding company or
banking laws, or other federal, state or local regulations or regulatory orders
applicable to ownership of Shares (“Applicable Laws”), owns, beneficially owns,
constructively owns, controls, holds the power to vote or otherwise meets a relevant
definition of ownership in excess of a number of Shares equal to (x) the number of
Shares that would give rise to reporting or registration obligations or other
requirements (including obtaining prior approval by a state or federal regulator) of
a Barclays Person under Applicable Laws and with respect to which such requirements
have not been met or the relevant approval has not been received minus (y) 1.0% of
the number of Shares outstanding on the date of determination (either such condition
described in clause (1) or (2), an “Excess Ownership Position”) and Barclays is
unable, after commercially reasonable efforts, to effect a transfer or assignment on
pricing terms and within a time period reasonably acceptable to it of all or a
portion of the Transaction pursuant to the preceding sentence such that an Excess
Ownership Position no longer exists, Barclays may designate any Scheduled Trading
Day as an Early Termination Date with respect to a portion (the “Terminated
Portion”) of the Transaction, such that an Excess Ownership Position no longer
exists. In the event that Barclays so designates an Early Termination Date with
respect to a portion of the Transaction, a payment shall be made pursuant to Section
6 of the Agreement as if (x) an Early Termination Date had been designated in
respect of a Transaction having terms identical to the Transaction and a Number of
Options equal to the Terminated Portion, (y) Counterparty shall be the sole Affected
Party with respect to such partial termination and (z) such Transaction shall be the
only Terminated Transaction (and, for the avoidance of doubt, the provisions of
paragraph 5(m) shall apply to any amount that is payable by Barclays to Counterparty
pursuant to this sentence). The “Equity Percentage” as of any day is the fraction,
expressed as a percentage, (A) the numerator of which is the number of Shares that
Barclays and any of its affiliates subject to aggregation with Barclays, 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 Barclays (“Barclays 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.

14

 

	 	 	 	Notwithstanding any other provision in this Confirmation to the contrary requiring
or allowing Barclays to purchase, sell, receive or deliver any Shares or other
securities to or from Counterparty, Barclays may designate any of its affiliates to
purchase, sell, receive or deliver such Shares or other securities and otherwise to
perform Barclays’ obligations in respect of the Transaction and any such designee
may assume such obligations. Barclays shall be discharged of its obligations to
Counterparty to the extent of any such performance.
	 
	 	(i)	 	Staggered Settlement. Barclays may, by notice to Counterparty on or prior to
any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares
deliverable on such Nominal Settlement Date on two or more dates (each, a “Staggered
Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:
(i) in such notice, Barclays will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date,
but not prior to the beginning of the related “Conversion Period” (as defined in the
Indenture) or delivery times and how it will allocate the Shares it is required to
deliver under “Net Share Settlement” above among the Staggered Settlement Dates or
delivery times; and (ii) the aggregate number of Shares that Barclays will deliver to
Counterparty hereunder on all such Staggered Settlement Dates and delivery times will
equal the number of Shares that Barclays would otherwise be required to deliver on such
Nominal Settlement Date.
	 
	 	(j)	 	Role of Agent. Each of Barclays and Counterparty acknowledges to and agrees
with the other party hereto and to and with the Agent that (i) the Agent is acting as
agent for Barclays under the Transaction pursuant to instructions from such party, (ii)
the Agent is not a principal or party to the Transaction, and may transfer its rights
and obligations with respect to the Transaction, (iii) the Agent shall have no
responsibility, obligation or liability, by way of issuance, guaranty, endorsement or
otherwise in any manner with respect to the performance of either party under the
Transaction, (iv) Barclays and the Agent have not given, and Counterparty is not
relying (for purposes of making any investment decision or otherwise) upon, any
statements, opinions or representations (whether written or oral) of Barclays or the
Agent, other than the representations expressly set forth in this Confirmation or the
Agreement, and (v) each party agrees to proceed solely against the other party, and not
the Agent, to collect or recover any money or securities owed to it in connection with
the Transaction. Each party hereto acknowledges and agrees that the Agent is an
intended third party beneficiary hereunder. Counterparty acknowledges that the Agent
is an affiliate of Barclays. Barclays will be acting for its own account in respect of
this Confirmation and the Transaction contemplated hereunder.
	 
	 	(k)	 	Regulatory Provisions. The time of dealing for the Transaction will be
confirmed by Barclays upon written request by Counterparty. 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.
	 
	 	(l)	 	Netting and Setoff. Obligations under the Transaction shall not be netted,
recouped or set off (including pursuant to Section 6 of the Agreement) against any
other obligations of the parties, whether arising under the Agreement, this
Confirmation, under any other agreement between the parties hereto, by operation of law
or otherwise, and no other obligations of the parties shall be netted, recouped or set
off (including pursuant to Section 6 of the Agreement) against obligations under the
Transaction, whether arising under the Agreement, this Confirmation, under any other
agreement between the parties hereto, by operation of law or otherwise, and each party
hereby waives any such right of setoff, netting or recoupment, provided that both
parties agree that subparagraph (ii) of Section 2(c) of the Agreement shall
apply to the Transaction.

15

 

	 	(m)	 	Alternative Calculations and Barclays Payment on Early Termination and on
Certain Extraordinary Events. If Barclays owes Counterparty any amount in connection
with the Transaction (i) pursuant to “Consequences of Merger Events” above or Sections
12.6, 12.7 or 12.9 of the Equity Definitions or (ii) pursuant to Section 6(d)(ii) of
the Agreement (a “Payment Obligation”), Counterparty shall have the right, in its sole
discretion, to require Barclays to satisfy any such Payment Obligation by delivery of
Termination Delivery Units (as defined below) by giving irrevocable telephonic notice
to Barclays, confirmed in writing within one Scheduled Trading Day, no later than noon
New York time on the Early Termination Date or other date the Transaction is cancelled
or terminated, as applicable, where such notice shall include a representation and
warranty from Counterparty that it is not, as of the date of the telephonic notice and
the date of such written notice, aware of any material non-public information
concerning itself or the Shares (where “material” shall have the meaning set forth in
paragraph 5(s) below) (“Notice of Barclays Termination Delivery”); provided that if
Counterparty does not elect to require Barclays to satisfy its Payment Obligation by
delivery of Termination Delivery Units, Barclays shall have the right (without regard
to the exceptions set forth in clauses (i) and (ii) above), in its sole discretion, to
elect to satisfy its Payment Obligation by delivery of Termination Delivery Units,
notwithstanding Counterparty’s failure to elect or election to the contrary; and
provided further that Counterparty shall not have the right to so elect (but, for the
avoidance of doubt, Barclays shall have the right to so elect) in the event of (i) an
Insolvency, a Nationalization or a Merger Event, in each case, in which the
consideration or proceeds to be paid to holders of Shares consists solely of cash or
(ii) an Event of Default in which Counterparty is the Defaulting Party or a Termination
Event in which Counterparty is the Affected Party, which Event of Default or
Termination Event resulted from an event or events within Counterparty’s control.
Within a commercially reasonable period of time following receipt of a valid Notice of
Barclays Termination Delivery, Barclays shall deliver to Counterparty a number of
Termination Delivery Units having a fair market value (net of any brokerage and
underwriting commissions and fees, including any customary private placement fees)
equal to the amount of such Payment Obligation (such number of Termination Delivery
Units to be delivered to be determined by the Calculation Agent as the number of whole
Termination Delivery Units that could be purchased over a commercially reasonable
period of time with the cash equivalent of such Payment Obligation). If the provisions
set forth in this paragraph are applicable, the provisions of Sections 9.9, 9.10, 9.11
(modified as described above) and 9.12 of the Equity Definitions shall be applicable,
except that all references to “Shares” shall be read as references to “Termination
Delivery Units.” “Termination Delivery Units” means in the case of a Termination
Event, Event of Default or Delisting, one Share or, in the case of Nationalization,
Insolvency or Merger Event, a unit consisting of the number or amount of each type of
property received by a holder of one Share (without consideration of any requirement to
pay cash or other consideration in lieu of fractional amounts of any securities) in
such Nationalization, Insolvency or Merger Event; provided that if such
Nationalization, Insolvency 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.
	 
	 	(n)	 	No Collateral. Notwithstanding any provision of this Confirmation, the
Agreement, Equity Definitions, or any other agreement between the parties to the
contrary, the obligations of Counterparty under the Transaction are not secured by any
collateral.
	 
	 	(o)	 	Registration. Counterparty hereby agrees that if, in the good faith reasonable
judgment of Barclays, the Shares (“Hedge Shares”) acquired by Barclays for the purpose
of hedging its obligations pursuant to the Transaction cannot be sold in the public
market by Barclays without registration under the Securities Act, Counterparty shall,
at its election, either (i) in order to allow Barclays to sell the Hedge Shares in a
registered offering, make available to Barclays an effective registration statement
under the Securities Act and (A) enter into an agreement, in form and substance
reasonably satisfactory to Barclays, substantially in the form of an underwriting
agreement for a registered offering, (B) provide accountant’s “comfort” letters
customary in form for registered offerings of equity securities, (C) provide disclosure
opinions of nationally recognized outside counsel to Counterparty reasonably acceptable
to Barclays, (D) provide other

16

 

	 	 	 	customary opinions, certificates and closing documents customary in form for
registered offerings of equity securities and (E) afford Barclays 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 Barclays, in its sole reasonable discretion, is not satisfied with
access to due diligence materials, the results of its due diligence investigation,
or the procedures and documentation for the registered offering referred to above,
then clause (ii) or clause (iii) of this paragraph shall apply at the election of
Counterparty, (ii) in order to allow Barclays to sell the Hedge Shares in a private
placement, enter into and comply with a private placement agreement substantially
similar to private placement purchase agreements customary for private placements of
equity securities, in form and substance satisfactory to Barclays (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 Barclays 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 Barclays at
the closing price on such Exchange Business Days, and in the amounts, requested by
Barclays.

	 	(p)	 	Tax Disclosure. Notwithstanding anything to the contrary herein, in the Equity
Definitions or in the Agreement, and notwithstanding any express or implied claims of
exclusivity or proprietary rights, the parties (and each of their employees,
representatives or other agents) are authorized to disclose to any and all persons,
beginning immediately upon commencement of their discussions and without limitation of
any kind, the tax treatment and tax structure of the Transaction, and all materials of
any kind (including opinions or other tax analyses) that are provided by either party
to the other relating to such tax treatment and tax structure.
	 
	 	(q)	 	Status of Claims in Bankruptcy. Barclays acknowledges and agrees that this
Confirmation is not intended to convey to Barclays rights with respect to the
Transaction that are senior to the claims of common stockholders in any U.S. bankruptcy
proceedings of Counterparty; provided that nothing herein shall limit or shall be
deemed to limit Barclays’ right to pursue remedies in the event of a breach by
Counterparty of its obligations and agreements with respect to the Transaction;
provided, further, that nothing herein shall limit or shall be deemed to limit
Barclays’ rights in respect of any transactions other than the Transaction.
	 
	 	(r)	 	Securities Contract; Swap Agreement. The parties hereto agree and acknowledge
that Barclays is a “financial institution,” “swap participant” and “financial
participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the
Bankruptcy Code. The parties hereto further agree and acknowledge (A) that this
Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7)
of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in
connection herewith is a “termination value,” “payment amount” or “other transfer
obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement
payment” or a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and
(ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy
Code, with respect to which each payment and delivery hereunder or in connection
herewith is a “termination value,” a “payment amount” or “other transfer obligation”
within the meaning of Section 362 of the Bankruptcy Code and a “transfer” within the
meaning of Section 546 of the Bankruptcy Code, and (B) that Barclays is entitled to the
protections afforded by, among other sections, Section 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the
Bankruptcy Code.
	 
	 	(s)	 	No Material Non-Public Information. On each day during the period beginning on
the date on which the offering of the Convertible Notes was first announced and ending
on the day on which Barclays has informed Counterparty in writing that Barclays has
completed all purchases of Shares or other transactions to hedge initially its exposure
with respect to the Transaction, Counterparty represents and warrants to Barclays that
it is not aware of any material non-public information concerning itself or the Shares.
“Material” information for these purposes is any information to which an investor would
reasonably attach importance in reaching a decision to buy, sell or hold Shares.

17

 

	 	(t)	 	Right to Extend. Barclays may postpone any Potential Exercise Date or postpone
or extend any other date of valuation or delivery with respect to some or all of the
relevant Options as applicable (in which event the Calculation Agent shall make
appropriate adjustments to the Settlement Amount for such Options), if Barclays
determines, in its reasonable discretion based on the advice of counsel to Barclays,
that such postponement or extension is reasonably necessary or appropriate to preserve
Barclays’ or its affiliate’s hedging or hedge unwind activity hereunder in light of
existing liquidity conditions or to enable Barclays or its affiliate to effect
purchases of Shares in connection with its hedging, hedge unwind or settlement activity
hereunder in a manner that would, if Barclays or such affiliate were Issuer or an
affiliated purchaser of Issuer, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and procedures applicable to
Barclays and/or such affiliate, provided that such requirements, policies and
procedures are generally applicable in similar situations and applied to the
Transaction in a non-discriminatory manner.

	 	(u)	 	 Payments on Early Termination. The parties hereto agree that for the Transaction, for
the purposes of Section 6(e) of the Agreement, Loss and Second Method will apply.
	 
	 	(v)	 	 Illegality. The parties agree that for the avoidance of doubt, for purposes of Section
5(b)(i) of the Agreement, “any applicable law” shall include the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010, any rules and regulations promulgated thereunder
and any similar law or regulation, without regard to Section 739 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision
in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date,
and the consequences specified in the Agreement, including without limitation, the
consequences specified in Section 6 of the Agreement, shall apply to any Illegality arising
from any such act, rule or regulation.

	 	(w)	 	Governing Law. The law of the State of New York (without reference to choice
of law doctrine).
	 
	 	(x)	 	Waiver of Jury Trial. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION
OR PROCEEDING RELATING TO THE TRANSACTION. EACH PARTY (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR
PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE
OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.

	6.	 	Account Details:

	 	(a)	 	Account for payments to Counterparty:
	 
	 	 	 	InterDigital, Inc.

ABA:

Acct:

Acct No.:

	 
	 	 	 	Account for delivery of Shares to Counterparty:
	 
	 	 	 	To be provided by Counterparty.

18

 

	 	(b)	 	Account for payments to Barclays:
	 
	 	 	 	Bank: 

ABA# 

BIC: 

Acct: 

Beneficiary: 

Ref: 

	7.	 	Offices:

The Office of Counterparty for the Transaction is: Inapplicable, Counterparty is not a Multibranch
Party.

The Office of Barclays for the Transaction is: Inapplicable, Barclays is not a Multibranch Party.

	8.	 	Notices:

For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Counterparty:
	 
	 	 	 	InterDigital, Inc.

781 Third Avenue

King of Prussia, Pennsylvania 19406

Attention:          Scott McQuilkin

Telephone:         (+1) 610-878-1850

Facsimile:          (+1) 610-878-7844
	 
	 	(b)	 	Address for notices or communications to Barclays:
	 
	 	 	 	Barclays Capital Inc.

200 Park Avenue

New York, New York 10166

Attention:          General Counsel

Telephone:         (+1) 212-412-4000

Facsimile:          (+1) 212-412-7519
	 
	 	 	 	with a copy to:
	 
	 	 	 	Barclays Capital Inc.

745 Seventh Ave.

New York, NY 10019

Attn:                   Paul Robinson

Telephone:         (+1) 212-526-0111

Facsimile:          (+1) 917-522-0458

	 
	 	 	 	and
	 
	 	 	 	Barclays Bank PLC, 5 The North Colonnade

Canary Wharf, London E14 4BB

Facsimile:          44(20) 777 36461

Phone:                44(20) 777 36810

19

 

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

20

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below and returning to
Barclays a facsimile of the fully-executed Confirmation to Barclays at (+1) 917-522-0458.
Originals shall be provided for your execution upon your request.

Very truly yours,

	 	 	 	 
	BARCLAYS CAPITAL INC.

acting solely as Agent in connection with the Transaction

 
	By:  	/s/  Adam Lawlor
 	 
	 	Name:  	Adam Lawlor 	 
	 	Title:  	Authorised Signatory 	 
	 
	Accepted and confirmed as of the Trade Date:

INTERDIGITAL, INC.

 	 
	By:  	/s/  Scott A. McQuilkin
 	 
	 	Name:  	Scott A. McQuilkin 	 
	 	Title:  	Chief Financial Officer 	 

21

 

SCHEDULE A

For purposes of the Transaction, the following terms shall have the following values/meanings:

	 	 	 	 	 	 

	1.	 	 	Strike Price:

	 	USD57.6508
	2.	 	 	Premium:

	 	USD37,100,000.00

22exv10w2

Exhibit 10.2

	 	 	 

	 

	 	Barclays Bank PLC, 5
	 

	 	The North Colonnade
	 

	 	Canary Wharf, London E14 4BB
	 

	 	Facsimile:+44(20)77736461
	 

	 	Telephone: +44 (20) 777 36810
	 
	 	 
	 

	 	c/o Barclays Capital Inc.
	 

	 	as Agent for Barclays Bank PLC
	 

	 	745 Seventh Ave
	 

	 	New York, NY 10019
	 

	 	Telephone: +1 212 412 4000

	 	 	 

	DATE:

	 	March 30, 2011
	 
	 	 
	TO:

	 	InterDigital, Inc.
	ATTENTION:

	 	Scott McQuilkin
	TELEPHONE:

	 	(+1) 610-878-1850
	FACSIMILE:

	 	(+1) 610-878-7844
	 
	 	 
	FROM:

	 	Barclays Capital Inc., acting as Agent for Barclays Bank PLC
	ATTENTION:

	 	Paul Robinson
	TELEPHONE:

	 	(+1) 212-526-0111
	FACSIMILE:

	 	(+1) 917-522-0458
	 
	 	 
	SUBJECT:

	 	Additional Bond Hedge Transaction

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions
of the Transaction entered into between Barclays Bank PLC (“Barclays”), through its agent Barclays
Capital Inc. (the “Agent”), and InterDigital, Inc. (“Counterparty”) on the Trade Date specified
below (the “Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the
Master Agreement specified below. Barclays is regulated by the Financial Services Authority.
Barclays Bank PLC is not a member of the Securities Investor Protection Corporation (“SIPC”).

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms used
herein have the meanings assigned to them in the Indenture to be dated on or about April 4, 2011
between Counterparty and The Bank of New York Mellon Trust Company, N.A., as trustee (as may be
amended, modified or supplemented from time to time, but only if such amendment, modification or
supplement is consented to by Barclays in writing, the “Indenture”) relating to USD200,000,000
principal amount of 2.50% senior convertible notes due 2016 and the additional USD30,000,000
principal amount of 2.50% senior convertible notes due 2016 issued pursuant to the over-allotment
option exercised on the date hereof (collectively, the “Convertible Notes”) issued by Counterparty.
In the event of any inconsistency between the Indenture and this Confirmation, this Confirmation
shall govern. For the avoidance of doubt, references herein to sections of the Indenture are based
on the draft of the Indenture most recently reviewed by the parties at the time of this
Confirmation. If any relevant sections of the Indenture are changed, added, or renumbered
following execution of this Confirmation, the parties will amend this Confirmation in good faith to
preserve the economic intent of the parties.

1

 

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.

1. This Confirmation evidences a complete and binding agreement between Barclays and Counterparty
as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to, an agreement in the form of the ISDA 1992 Master
Agreement (Multicurrency — Cross Border) as if Barclays and Counterparty had executed an agreement
(the “Agreement”) in such form (without any Schedule but with the elections set forth in this
Confirmation) on the Trade Date. In the event of any inconsistency between provisions of the
Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction.
The parties hereby agree that no Transaction other than the Transaction to which this Confirmation
relates shall be governed by the Agreement.

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

	 	 	 	 	 

	General Terms:
	 	 	 	 
	 
	Trade Date:
	 	March 30, 2011
	 
	Option Style:
	 	Modified American, as described below under “Procedures for Exercise”.
	 
	Option Type:
	 	Call.
	 
	Buyer:
	 	Counterparty.
	 
	Seller:
	 	Barclays.
	 
	Shares:
	 	The common stock, par value USD0.01 per share, of Counterparty (Ticker symbol “IDCC”).
	 
	Number of Options:
	 	As of the Trade Date, 30,000 (as reduced from time to time as of each Potential Exercise Date by the number of Exercisable Options for such Potential Exercise Date).
	 
	Option Entitlement:
	 	As of any date, a number of Shares per Option equal to the “Conversion Rate” (as defined in the Indenture) as of such date, but without regard to any adjustments to the “Conversion Rate” pursuant to Section 10.03 or to Section 10.04(f) of the Indenture).
	 
	Strike Price:
	 	As provided in Schedule A to this Confirmation.
	 
	Premium:
	 	As provided in Schedule A to this Confirmation.
	 
	Premium Payment Date:
	 	The closing date for the issuance of the additional Convertible Notes with respect to which the initial purchasers named in the Purchase Agreement (as defined in Section 4(a) below) exercised the option to purchase on March 30, 2011 pursuant to Section 3(b) of the Purchase Agreement.
	 
	Exchange:
	 	The NASDAQ Global Select Market.
	 
	Related Exchange(s):
	 	All Exchanges.

2

 

	 	 	 	 	 

	Calculation Agent:
	 	Barclays.  All determinations made by the Calculation Agent shall be made in good faith and in a commercially reasonable manner.  Following any determination or calculation by the Calculation Agent hereunder, upon a written request by Counterparty, the Calculation Agent will provide to Counterparty by e-mail to the e-mail address provided by Counterparty in such written request a report (in a commonly
 used file format for the storage and manipulation of
financial data) displaying in reasonable detail such determination
or calculation, including, where applicable, a description of the
methodology and data applied, it being understood that the Calculation
Agent shall not be obligated to disclose any proprietary models used
 by it for such determination or calculation.
	 
	Procedures for Exercise:
	 	 	 	 
	 
	Potential Exercise Dates:
	 	Notwithstanding anything to the contrary in section 3.1(b) of the Equity Definitions, “Potential Exercise Date” shall mean each Conversion Date.
	 
	Conversion Dates:
	 	Each “Conversion Date” (as defined in the Indenture).
	 
	Exercisable Options:
	 	In respect of each Conversion Date, a number of Options equal to (i) the number of Convertible Notes in denominations of USD1,000 principal amount surrendered for conversion on such Conversion Date in accordance with the terms of the Indenture minus (ii) the number of “Exercisable Options,” (as defined in the Bond Hedge Transaction Confirmation letter agreement dated March 29, 2011 between
Barclays and Counterparty (the “Initial Bond Hedge Confirmation”)),
if any, with a “Conversion Date”
(as defined in the Initial Bond Hedge Confirmation) that
is the same as the Conversion Date; provided that
if such calculation results in a number of Exercisable
Options that is less than zero, the number of Exercisable
Options for the Conversion Date shall be zero.
	 
	Expiration Date:
	 	Notwithstanding anything to the contrary in section 3.1(f) of the Equity Definitions, “Expiration Date” shall mean the earlier of (x) the last day on which any Convertible Notes remain outstanding and (y) the maturity date of the Convertible Notes.
	 
	Multiple Exercise:
	 	Applicable, as provided under “Exercisable Options” above.
	 
	Automatic Exercise:
	 	Applicable, subject to “Notice of Exercise” below.

3

 

	 	 	 	 	 

	Notice of Exercise:
	 	Notwithstanding anything to the
contrary in the Equity Definitions, in order to exercise any
Exercisable Options, Counterparty must notify Barclays
 in writing prior to 5:00 p.m., New York City time, on the day that is at least two “Scheduled
Trading Days” (as defined in the Indenture) prior to the first day of the
applicable “Conversion Period” (as defined in the Indenture) in
respect of the Convertible Notes being converted on the Conversion Date relating to
the relevant Exercise Date (the “Notice Deadline”) of (i)
the number of Options being exercised on such Exercise Date; (ii) the Exercise Date; (iii)
the scheduled commencement date of the “Conversion Period” and (iv) the scheduled
settlement date under the Indenture for the relevant Convertible Notes converted on
 the Conversion Date corresponding to such Exercise Date; provided that, notwithstanding the foregoing, such notice (and the related automatic exercise of such
 Options) shall be effective if given after the relevant Notice
Deadline (but only in respect of any Options relating to
Convertible Notes with a Conversion Date occurring prior to the Free Convertibility Date
(as defined below)), but prior to 5:00 p.m. (New York City time) on the fifth “Trading Day” (as defined
in the Indenture) of such Conversion Period, in which case the Calculation Agent shall have the right to adjust
 the Settlement Amount (as defined below) as appropriate to reflect the additional costs
(including, but not limited to, hedging mismatches and market losses) and
reasonable expenses incurred by Barclays or its affiliates in connection
with hedging activities (including the unwinding of any hedge position)
as a result of its not having received such notice prior to the Notice Deadline;
and provided further that in respect of Convertible Notes converted during the period beginning on, and including the 25th “Scheduled Trading Day” (as defined in the Indenture) prior
to the “Maturity Date” (as defined in the Indenture) for such
 Convertible Notes (such 25th “Scheduled
Trading Day”, the “Free Convertibility Date”) and ending on the first “Scheduled
 Trading Day” immediately preceding the “Maturity Date”, the Notice Deadline
shall be 5:30
 p.m., New York City time, on the first “Scheduled Trading Day”
immediately preceding the “Maturity Date”.
	 
	Settlement Terms:
	 	 	 	 
	 
	Net Share Settlement:
	 	In respect of an Exercise Date occurring on a Conversion Date, 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, Barclays
shall deliver to Counterparty on the related Settlement Date, with respect to a number of Options exercised on such Exercise
 Date, a number of Shares equal to the aggregate number of Shares that Counterparty is obligated to deliver to the holder(s)
 of the related Convertible Notes converted on such Conversion Date pursuant to Section 10.02(b) of the Indenture
(except that such number of Shares shall be determined without taking into consideration any rounding pursuant to Section
10.02(h) of the Indenture and shall be rounded down to the nearest whole number, and cash shall be delivered in lieu
of fractional Shares, if any, resulting from such rounding) (the “Settlement Amount”); provided 
that such obligation shall be determined excluding any Shares that Counterparty is obligated to deliver to holder(s)
 of the Convertible Notes as a result of any adjustments to the Conversion Rate as set forth in Sections 10.03 or

4

 

	 	 	 	 	 

	 
	 	10.04(f) of the Indenture; provided further that if such exercise relates to the
 conversion of Convertible Notes in connection with which holders thereof are entitled to receive additional Shares
pursuant to the adjustments to the Conversion Rate set forth in Section 10.03 of the Indenture, then, notwithstanding the
foregoing, the Settlement Amount shall include such additional Shares, except that the Settlement Amount shall be
capped so that the value of the Settlement Amount per Option (with the value of any Shares included in the Settlement Amount determined by the Calculation Agent
 using the VWAP (as defined in the Indenture) on the last day of the relevant Conversion Period) does not exceed the amount as determined by the Calculation Agent that would be payable by Barclays 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, (x) the Number of Options shall be deemed to be equal to the number of Options exercised on such Exercise Date and (y) such amount payable will be determined as if Section 10.03 of the Indenture were deleted) was the sole Affected Transaction and Counterparty was the sole Affected Party (determined without regard to paragraph 5(k) below);

	 
	 
	 	
 provided, further, that if Counterparty is permitted to or required to exercise discretion under the terms
 of the Indenture with respect to any determination, calculation or adjustment relevant to conversion of the
 Convertible Notes including, but not limited to, the volume-weighted average price of the Shares (but, for the
 avoidance of doubt, other than for determinations referred to under the heading “Method of Adjustment”
below), Counterparty shall consult with Barclays with respect thereto.
	 
	Notice of Delivery Obligation:
	 	No later than the “Scheduled Trading Day” immediately following the last day of the “Conversion Period” (as defined in the Indenture), Counterparty shall give Barclays notice of the final number of Shares comprising the Settlement Amount; 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” above in any way.
	 
	Settlement Date:
	 	In respect of any Exercise Date, the settlement date for the Shares to be delivered in connection with the related Convertible Notes under the terms of the Indenture; provided that the Settlement Date shall not be prior to the Clearance System Business Day immediately following the date on which Counterparty gives notice to Barclays of such Settlement Date.
	 
	Settlement Currency:
	 	USD.
	 
	Other Applicable Provisions:
	 	The provisions of Sections 9.4 (except that “Settlement Date” shall be as
defined above, unless a Settlement Disruption Event prevents delivery of such Shares on that date), 9.8, 9.9, 9.10,
9.11 and 9.12 of the Equity Definitions shall be applicable; provided that the Representation and Agreement contained
 in Section 9.11 of the Equity Definitions shall be modified by excluding any restrictions, obligations, limitations
 or requirements under applicable securities laws as a result of the fact that Counterparty is the issuer of the Shares.

5

 

	 	 	 	 	 

	Restricted Certificated Shares:
	 	Notwithstanding anything to the contrary in the Equity Definitions, Barclays may, in whole or in part, deliver Shares in certificated form representing the Settlement Amount to Counterparty in lieu of delivery through the Clearance System.
	 
	Share Adjustments:
	 	 	 	 
	 
	Method of Adjustment:
	 	Calculation Agent Adjustment, which means that, notwithstanding
Section 11.2(c) of the Equity Definitions (and, for the avoidance of doubt, in lieu of any
adjustments pursuant to such section), upon the occurrence of any Potential Adjustment Event (for the avoidance of doubt, other than an increase in the “Conversion Rate” pursuant to Sections 10.03 and 10.04(f) of the Indenture), the Calculation Agent will make a corresponding adjustment to any one or more of the
Strike Price, Number of Options, the Option Entitlement and any other variable relevant to
 the exercise, settlement, payment or other terms of the Transaction.
 Counterparty agrees that it will notify Barclays prior to the effectiveness of any such adjustment and, to the extent
such adjustment requires an exercise of discretion by Counterparty under the terms of the Indenture, it shall exercise
 such discretion in good faith and in a commercially reasonable manner and promptly provide the Calculation Agent with any additional information it reasonably requests about the
Counterparty’s calculations and methodology for such adjustment.
	 
	Potential Adjustment Events:
	 	Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential Adjustment Event” means an occurrence of any event or condition, as set forth in Sections 10.04(a), (b), (c), (d) and (e) and Section 10.08 of the Indenture, that would result in an adjustment to the “Conversion Rate” (as defined in the Indenture) of the Convertible Notes; provided that in no event shall there be any adjustment hereunder as a result of an adjustment to the “Conversion Rate” pursuant to Section 10.03 or Section 10.04(f) of the Indenture.
	 
	Extraordinary Events:
	 	 	 	 
	 
	Merger Events:
	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition set forth in Section 10.05 of the Indenture.
	 
	Notice of Merger Consideration:
	 	Upon the occurrence of a Merger Event that causes the Shares to be converted into or
exchanged for more than a single type of consideration (determined based in part upon the form of election of the holders
of the Shares), Counterparty shall promptly notify the Calculation Agent in writing of the types and amounts
 of consideration that holders of Shares have affirmatively elected to receive upon consummation of such Merger
Event; provided that in no event shall the date of such notification be later than the date on which such Merger Event is consummated.

6

 

	 	 	 	 	 

	Consequences of Merger Events:
	 	Notwithstanding Section 12.2 of the Equity Definitions (and, for the avoidance of doubt, in lieu of any adjustments or other consequences pursuant to such section), upon the occurrence of a Merger Event, with respect to any adjustment made or effective under the terms of the Indenture as a result of such Merger Event pursuant to Section 10.05 of the Indenture, the Calculation Agent shall make a corresponding adjustment in respect of such adjustment under the Indenture to any
 one or more of the nature of the Shares, the Strike Price, the Number of Options, the Option Entitlement and any other variable relevant to the exercise, settlement, payment or other terms of the Transaction, as applicable; provided, however, that such adjustment shall be made without regard to any adjustment to the “Conversion Rate” (as defined in the Indenture) for the issuance of additional shares as set forth in Section 10.03 or Section 10.04(f) of the Indenture.
	 
	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:
	 	 	 	 
	 
	Change in Law:
	 	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is
hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the
phrase “, or public announcement of, the formal or informal interpretation” and (ii) by replacing
the word “Shares” where it appears in clause (X) thereof
with the words “Hedge Position” ;
and provided further that Barclays shall not exercise its rights under Section 12.9(b)(i)
 with respect to a Change in Law referred to in clause (Y) of Section 12.9(a)(ii) of the Equity Definitions
except to the extent it is exercising its right to terminate or adjust transactions as a result of a “Change
 in Law” event with respect to other similarly situated customers. The parties agree that, for the
avoidance of doubt, for purposes of Section 12.9(a)(ii) of the Equity Definitions, “any applicable
law or regulation” shall include the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, any rules
 and regulations promulgated thereunder and any similar law or regulation, and the consequences specified in Section
 12.9(b)(i) of the Equity Definitions  (as modified below) shall apply to any Change in Law arising from any such act, rule or regulation.
	 
	Failure to Deliver:
	 	Not Applicable.
	 
	Insolvency Filing:
	 	Applicable.

7

 

	 	 	 	 	 

	Hedging Disruption:
	 	Applicable; provided that

	 
	

	 	
 (i) Section 12.9(a)(v) of the Equity Definitions is hereby modified by inserting the following three sentences at the end of such Section:

	 
	 
	 	
 “Such inability described in phrases (A) or (B) above shall not constitute a “Hedging Disruption” unless
 (x) such inability does not result from factors particular to Hedging Party (such as Hedging Party’s
creditworthiness or financial position, or particular actions or transactions undertaken by the Hedging Party unrelated to the hedging of the Transaction) and (y) such inability will result in continued performance by the Hedging Party under the Transaction being commercially unreasonable or commercially impracticable.  For the avoidance of doubt, the term “equity price risk” shall be deemed to include, but shall not be limited to, stock price and volatility risk. And, for the further avoidance of doubt, any such transactions or assets referred to in phrases (A) or (B)
above must be available on commercially reasonable pricing terms.”

	 
	 
	 	
(ii) Section 12.9(b)(iii) of the Equity Definitions is hereby amended by inserting in the third line thereof,  after the words “to terminate the Transaction”, the words “or a portion of the Transaction affected by such Hedging Disruption”.
	 
	Hedging Party:
	 	Barclays or an affiliate of Barclays that is involved in the hedging of the Transaction for all applicable Additional Disruption Events.
	 
	Determining Party:
	 	Barclays for all applicable Extraordinary Events.
	 
	Acknowledgments:
	 	 	 	 
	 
	Non-Reliance:
	 	Applicable.
	 
	Agreements and Acknowledgments
Regarding Hedging Activities:
	 	Applicable.
	 
	Additional Acknowledgments:
	 	Applicable.

3. Mutual Representations, Warranties and Agreements.

Each of Barclays and Counterparty represents and warrants to, and agrees with, the other party
that:

	 	(a)	 	Commodity Exchange Act. It is an “eligible contract participant” within the
meaning of Section 1a(12) of the U.S. Commodity Exchange Act, as amended (the “CEA”).
The Transaction has been subject to individual negotiation by the parties. The
Transaction has not been executed or traded on a “trading facility” as defined in
Section 1a(33) of the CEA.
	 
	 	(b)	 	Securities Act. It is a “qualified institutional buyer” as defined in Rule
144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or an
“accredited investor” as defined in Section 2(a)(15)(ii) of the Securities Act.
	 
	 	(c)	 	ERISA. The assets used in the Transaction (1) are not assets of any “plan” (as
such term is defined in Section 4975 of the U.S. Internal Revenue Code (the “Code”))
subject to Section 4975 of the Code or any “employee benefit plan” (as such term is
defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as
amended (“ERISA”)) subject to Title I of ERISA, and (2) do not constitute “plan assets”
within the meaning of Department of Labor Regulation 2510.3-101, 29 CFR Section
2510-3-101.

8

 

4. Representations, Warranties and Agreements of Counterparty.

In addition to the representations and warranties in the Agreement and those contained elsewhere
herein, Counterparty further represents, warrants and agrees that:

	 	(a)	 	the representations and warranties of Counterparty set forth in Section 2 of
the Purchase Agreement dated as of  March 29, 2011 between Counterparty and Barclays
Capital Inc. (the “Purchase Agreement”), are true and correct and are hereby deemed to
be repeated to Barclays as if set forth herein;
	 
	 	(b)	 	Counterparty is not as of the Trade Date or the Premium Payment Date, and shall
not be after giving effect to the transactions contemplated hereby, “insolvent” (as
such term is defined in Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the
United States Code) (the “Bankruptcy Code”)) and on each such date Counterparty would
be able to purchase a number of Shares equal to the Number of Shares in compliance with
the laws of the jurisdiction of Counterparty’s incorporation or organization;
	 
	 	(c)	 	Counterparty shall promptly provide written notice to Barclays upon obtaining
knowledge of the occurrence of any event that would constitute an Event of Default, a
Potential Event of Default, a Potential Adjustment Event, a Merger Event or any other
Extraordinary Event; provided, however, that should Counterparty be in possession of
material non-public information regarding Counterparty, Counterparty shall not
communicate such information to Barclays;
	 
	 	(d)	 	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;
	 
	 	(e)	 	Counterparty has (and shall at all times during the Transaction have) the
capacity and authority to invest directly in the Shares underlying the Transaction and
has not entered into the Transaction with the intent to avoid any regulatory filings;
	 
	 	(f)	 	Counterparty’s financial condition is such that it has no need for liquidity
with respect to its investment in the Transaction and no need to dispose of any portion
thereof to satisfy any existing or contemplated undertaking or indebtedness;
	 
	 	(g)	 	Counterparty’s investments in and liabilities in respect of the Transaction,
which it understands are not readily marketable, are not disproportionate to its net
worth, and Counterparty is able to bear any loss in connection with the Transaction,
including the loss of its entire investment in the Transaction;
	 
	 	(h)	 	Counterparty understands, agrees and acknowledges that Barclays has no
obligation or intention to register the Transaction under the Securities Act, any state
securities law or other applicable federal securities law;
	 
	 	(i)	 	each of Counterparty’s filings under the Securities Act, the Exchange Act, or
other applicable securities laws that are required to be filed have been filed and
that, as of the respective dates thereof and as of the date of this representation,
such filings when considered as a whole (with the more recent such filings deemed to
amend inconsistent statements contained in any earlier such filings) do not contain any
misstatement of a material fact or any omission of a material fact required to be
stated therein or necessary to make the statements made therein, in the light of the
circumstances under which they were made, not misleading;
	 
	 	(j)	 	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;

9

 

	 	(k)	 	Counterparty understands, agrees and acknowledges that no obligations of
Barclays to it hereunder shall be entitled to the benefit of deposit insurance and that
such obligations shall not be guaranteed by any affiliate of Barclays or any
governmental agency;
	 
	 	(l)	 	(A) Counterparty is acting for its own account, and it has made its own
independent decisions to enter into the Transaction and as to whether the Transaction
is appropriate or proper for it based upon its own judgment and upon advice from such
advisers as it has deemed necessary, (B) Counterparty is not relying on any
communication (written or oral) of Barclays or any of its affiliates as investment
advice or as a recommendation to enter into the Transaction (it being understood that
information and explanations related to the terms and conditions of the Transaction
shall not be considered investment advice or a recommendation to enter into the
Transaction) and (C) no communication (written or oral) received from Barclays or any
of its affiliates shall be deemed to be an assurance or guarantee as to the expected
results of the Transaction;
	 
	 	(m)	 	without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Barclays is not making any representations or warranties
with respect to the treatment of the Transaction under any accounting standards
including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging,
ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and
Hedging — Contracts in Entity’s Own Equity (or any successor issue statements) or
under FASB’s Liabilities & Equity Project;
	 
	 	(n)	 	Counterparty is not entering into the Transaction for the purpose of (i)
creating actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or (ii) raising or depressing or otherwise
manipulating the price of the Shares (or any security convertible into or exchangeable
for the Shares) or otherwise in violation of the Exchange Act;
	 
	 	(o)	 	Counterparty has not entered into any obligation that would contractually limit
it from effecting Net Share Settlement under the Transaction and it agrees not to enter
into any such obligation during the term of the Transaction; and
	 
	 	(p)	 	Counterparty shall deliver to Barclays an opinion of counsel, dated as of the
Premium Payment Date and reasonably acceptable to Barclays in form and substance, with
respect to the matters set forth in Section 3(a) of the Agreement, containing customary
exceptions, assumptions and qualifications, in each case reasonably acceptable to
Barclays.
	 
	 	(q)	 	No Pennsylvania state or local law, rule, regulation or regulatory order
applicable to the Shares would give rise to any reporting, consent, registration or
other requirement (including without limitation a requirement to obtain prior approval
from any person or entity) as a result of Barclays or its affiliates owning or holding
(however defined) Shares in connection with Barclays’ obligations under the
Transaction, except as previously disclosed by Counterparty to Barclays.
	 
	 	(r)	 	For purposes of Section 4(a)(i) and (ii) of the Agreement, (i) the Counterparty
agrees to deliver to Barclays one duly executed and completed United States Internal
Revenue Service Form W-9 (or successor thereto) and (ii) Barclays agrees to deliver to
the Counterparty one duly executed and completed United States Internal Revenue Form
W-8ECI (or successor thereto).

5. Other Provisions.

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

10

 

	 	(b)	 	Additional Termination Event. If (i) an Amendment Event occurs, (ii) a
Repayment Event occurs or (iii) an “Event of Default” with respect to Counterparty
under the terms of the Convertible Notes as set forth in Section 6.01 of the Indenture
occurs and the Convertible Notes are declared immediately due and payable under the
terms of the Indenture, an Additional Termination Event shall occur in respect of which
(A) Counterparty shall be the sole Affected Party and the Transaction shall be the sole
Affected Transaction and (B) Barclays shall be the party entitled to designate an Early
Termination Date pursuant to Section 6(b) of the Agreement; provided that in the case
of a Repayment Event the Transaction shall be subject to termination only in respect of
the number of Convertible Notes that cease to be outstanding in connection with or as a
result of such Repayment Event.
	 
	 	 	 	“Amendment Event” means that Counterparty amends, modifies, supplements or obtains a
waiver with respect to (i) 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 rate, conversion
settlement dates or conversion conditions), or (ii) 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 written consent of
Barclays, such consent not to be unreasonably withheld.
	 
	 	 	 	“Repayment Event” means that (A) any Convertible Notes are repurchased (whether in
connection with or as a result of a change of control, howsoever defined, or for any
other reason) by Counterparty or any of its subsidiaries, (B) any Convertible Notes
are delivered to Counterparty or any of its subsidiaries in exchange for delivery of
any property or assets of Counterparty or any of its subsidiaries (howsoever
described), (C) any principal of any of the Convertible Notes is repaid prior to the
final maturity date of the Convertible Notes (whether following acceleration of the
Convertible Notes or otherwise), or (D) any Convertible Notes are exchanged by or
for the benefit of the holders thereof for any other securities of Counterparty or
any of its affiliates (or any other property, or any combination thereof) pursuant
to any exchange offer or similar transaction; provided that, in the case of clause
(B) and clause (D), conversions of the Convertible Notes pursuant to the terms of
the Indenture as in effect on the date hereof shall not be Repayment Events.
	 
	 	(c)	 	Dividends. If at any time during the period from and including the Effective
Date, to but excluding the Expiration Date, (i) an ex-dividend date for a regular
quarterly cash dividend occurs with respect to the Shares (an “Ex-Dividend Date”), and
that dividend is less than the Regular Dividend on a per Share basis or (ii) if no
Ex-Dividend date for a regular quarterly cash dividend occurs with respect to the
Shares in any quarterly dividend period of Counterparty, then the Calculation Agent
will make a corresponding adjustment to any one or more of the Strike Price, Number of
Options, Option Entitlement and/or any other variable relevant to the exercise,
settlement or payment for the Transaction to preserve the fair value of the Options to
Barclays after taking into account such dividend or lack thereof. “Regular Dividend”
shall mean USD 0.10 per Share per quarter. Upon any adjustment to the Dividend
Threshold Amount (as defined in the Indenture) for the Convertible Notes pursuant to
Section 10.04(d) or Section 10.05 of the Indenture, the Calculation Agent will make a
corresponding adjustment to the Regular Dividend for the Transaction.
	 
	 	(d)	 	Repurchase Notices. Counterparty shall, on any day on which Counterparty
effects any repurchase of Shares, promptly give Barclays a written notice of such
repurchase (a “Repurchase Notice”) on such day if following such repurchase, the
Options Equity Percentage as determined on such day is (i) equal to or greater than 9%
and (ii) greater by 0.5% than the Options Equity Percentage included in the immediately
preceding Repurchase Notice (or, in the case of the first such Repurchase Notice,
greater than the Options Equity Percentage as of the Trade Date). The “Options Equity
Percentage” as of any day is the fraction (A) the numerator of which is the product of
(x) the sum of the Number of Options and the number of options underlying the Initial
Bond Hedge Confirmation and (y) the Option Entitlement and (B) the denominator of which
is the

11

 

	 	 	 	number of Shares outstanding on such day. Counterparty agrees to indemnify and hold
harmless Barclays and its affiliates and their respective officers, directors,
employees, affiliates, advisors, agents and controlling persons (each, an
“Indemnified Person”) from and against any and all losses (including losses relating
to Barclays’ hedging activities as a consequence of becoming, or of the risk of
becoming, a Section 16 “insider”, including without limitation, any forbearance from
hedging activities or cessation of hedging activities and any losses in connection
therewith with respect to the Transaction), claims, damages, judgments, liabilities
and expenses (including reasonable attorney’s fees), joint or several, which an
Indemnified Person may become subject to, as a result of Counterparty’s failure to
provide Barclays with a Repurchase Notice on the day and in the manner specified in
this paragraph, and to reimburse, within 30 days, upon written request, each of such
Indemnified Persons for any reasonable legal or other expenses incurred in
connection with investigating, preparing for, providing testimony or other evidence
in connection with or defending any of the foregoing. If any suit, action,
proceeding (including any governmental or regulatory investigation), claim or demand
shall be brought or asserted against the Indemnified Person in respect of the
foregoing, such Indemnified Person shall promptly notify Counterparty in writing,
and Counterparty, upon request of the Indemnified Person, shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others Counterparty may designate in such proceeding and shall pay
the fees and expenses of such counsel related to such proceeding. Counterparty
shall not be liable for any settlement of any proceeding contemplated by this
paragraph that is effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, Counterparty agrees to
indemnify any Indemnified Person from and against any loss or liability by reason of
such settlement or judgment. Counterparty shall not, without the prior written
consent of the Indemnified Person, effect any settlement of any pending or
threatened proceeding contemplated by this paragraph that is in respect of which any
Indemnified Person is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Person, unless such settlement includes an
unconditional release of such Indemnified Person from all liability on claims that
are the subject matter of such proceeding on terms reasonably satisfactory to such
Indemnified Person. If the indemnification provided for in this paragraph is
unavailable to an Indemnified Person or insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then Counterparty hereunder, in
lieu of indemnifying such Indemnified Person thereunder, shall contribute to the
amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities. The remedies provided for in this
paragraph (c) are
not exclusive and shall not limit any rights or remedies which may otherwise be
available to any Indemnified Person at law or in equity. The indemnity and
contribution agreements contained in this paragraph shall remain operative and in
full force and effect regardless of the termination of the Transaction.

	 	(e)	 	Rule 10b-18.
	 
	 	 	 	(i) Except as disclosed to Barclays in writing prior to the date on which the
offering of the Convertible Notes was first announced, Counterparty represents and
warrants to Barclays that it has not made any purchases of blocks by or for itself
or any of its Affiliated Purchasers pursuant to the one block purchase per week
exception in Rule 10b-18(b)(4) under the Exchange Act during each of the four
calendar weeks preceding such date (“Rule 10b-18 purchase,” “blocks” and “Affiliated
Purchaser” each as defined in Rule 10b-18 under the Exchange Act). Counterparty
agrees and acknowledges that it shall not, and shall cause its affiliates and
Affiliated Purchasers not to, directly or indirectly (including by means of a
derivative instrument) enter into any transaction to purchase any Shares during the
period beginning on such date and ending on the day on which Barclays has informed
Counterparty in writing that it has completed all purchases of Shares to hedge
initially its exposure to the Transaction.
	 
	 	 	 	(ii) On any day during any Conversion Period, 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) purchase,
offer to purchase, place any bid or limit order that would effect a

12

 

	 	 	 	purchase of, or commence any tender offer relating to, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership
or a depository share) or any security convertible into or exchangeable or
exercisable for Shares, except through Barclays.
	 
	 	 	 	(iii) Counterparty agrees that it (A) will not, on any day during any Conversion
Period, make, or permit to be made (to the extent within Counterparty’s reasonable
control), any public announcement (as defined in Rule 165(f) under the Securities
Act) of any Merger Transaction or potential Merger Transaction unless such public
announcement is made prior to the opening or after the close of the regular trading
session on the Exchange for the Shares; (B) shall promptly (but in any event prior
to the next opening of the regular trading session on the Exchange) notify Barclays
following any such announcement that such announcement has been made; and (C) shall
promptly (but in any event prior to the next opening of the regular trading session
on the Exchange) provide Barclays with written notice specifying (i) Counterparty’s
average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three
full calendar months immediately preceding the announcement date that were not
effected through Barclays or its affiliates and (ii) the number of Shares purchased
pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three
full calendar months preceding the announcement date. Such written notice shall be
deemed to be a certification by Counterparty to Barclays that such information is
true and correct. In addition, Counterparty shall promptly notify Barclays of the
earlier to occur of the completion of such transaction and the completion of the
vote by target shareholders. “Merger Transaction” means any merger, acquisition or
similar transaction involving a recapitalization as contemplated by Rule
10b-18(a)(13)(iv) under the Exchange Act.

	 	(f)	 	Regulation M. (x) Counterparty (A) was not on the date on which the offering
of the Convertible Notes was first announced, has not since such date, and is not on
the date hereof, engaged in a distribution, as such term is used in Regulation M under
the Exchange Act, of any securities of Counterparty, other than the distribution of the
Convertible Notes and (B) shall not engage in any “distribution,” as such term is
defined in Regulation M, other than a distribution meeting the requirements of the
exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the
second Exchange Business Day immediately following the Trade Date, and (y)(A) on any
day during any Conversion Period, the Shares or securities that are convertible into,
or exchangeable or exercisable for Shares, are not, and shall not be, subject to a
“restricted period,” as defined in Regulation M and (B) Counterparty shall not engage
in any “distribution,” as such term is defined in Regulation M, other than a
distribution meeting the requirements of the exceptions set forth in sections
101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day
immediately following the last day in such Conversion Period.
	 
	 	(g)	 	Early Unwind. In the event the sale of Convertible Notes is not consummated
with the initial purchaser for any reason by the close of business in New York on April
4, 2011 (or such later date as agreed upon by the parties) (April 4, 2011 or such later
date as agreed upon being the “Early Unwind Date”), the Transaction shall automatically
terminate (the “Early Unwind”), on the Early Unwind Date and (i) the Transaction and
all of the respective rights and obligations of Barclays and Counterparty under the
Transaction shall be cancelled and terminated and (ii) each party shall be released and
discharged by the other party from and agrees not to make any claim against the other
party with respect to any obligations or liabilities of the other party arising out of
and to be performed in connection with the Transaction either prior to or after the
Early Unwind Date; provided that, except to the extent that the Early Unwind Date
occurred as a result of a breach of the Purchase Agreement by Barclays or any of its
affiliates, Counterparty shall reimburse Barclays for any costs or expenses (including
market losses, unless Counterparty agrees to purchase any such Shares at the cost at
which Barclays purchased such Shares) relating to the unwinding of its hedging
activities in connection with the Transaction (including any loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge or
related trading position). The amount of any such reimbursement shall be determined by
Barclays in its sole good faith discretion. Barclays shall notify Counterparty of such
amount and Counterparty shall pay such amount in immediately available funds on the
Early Unwind Date. Barclays and Counterparty represent and acknowledge to the other
that, subject to the proviso included in this

13

 

	 	 	 	paragraph, upon an Early Unwind, all obligations with respect to the Transaction
shall be deemed fully and finally discharged.

	 	(h)	 	Transfer or Assignment. Counterparty may not transfer or assign any of its
rights or obligations under the Transaction without the prior written consent of
Barclays. Notwithstanding any provision of the Agreement to the contrary, Barclays
may, subject to applicable law, freely transfer and assign all of its rights and
obligations under the Transaction without the consent of Counterparty, (x) to any of
its affiliates and (y) solely to the extent required to eliminate an Excess Ownership
Position as provided in the immediately succeeding sentence, to any affiliate and/or
any other recognized dealer in transactions such as the Transaction, where in each
case, the assignee shall have a rating (or whose guarantor shall have a rating) for its
long term, unsecured and unsubordinated indebtedness of A- or better by Standard &
Poor’s Ratings Services or its successor (“S&P”), or A3 or better by Moody’s Investors
Service, Inc. or its successor (“Moody’s”) or, if either S&P or Moody’s ceases to rate
such debt, at least an equivalent rating or better by a substitute rating agency
mutually agreed by Counterparty and Barclays; provided that in the case of clause (x),
Counterparty will not, as a result of such transfer and/or assignment, be required
under the Agreement or this Confirmation to (i) pay to the transferee or assignee an
amount greater than the amount that it would have been required to pay to Barclays in
the absence of such transfer or assignment or (ii) receive from the transferee or
assignee an amount less than the amount that Counterparty would have received from
Barclays in the absence of such transfer or assignment, in each case based on the
circumstances in effect on the date of such transfer. Barclays shall provide
Counterparty with written notice of any assignment pursuant to clause (x).
	 
	 	 	 	If at any time at which (1) the Equity Percentage exceeds 9.0% or (2) Barclays,
Barclays Group (as defined below) or any person whose ownership position would be
aggregated with that of Barclays or Barclays Group (Barclays, Barclays Group or any
such person, a “Barclays Person”) under any state or federal bank holding company or
banking laws, or other federal, state or local regulations or regulatory orders
applicable to ownership of Shares (“Applicable Laws”), owns, beneficially owns,
constructively owns, controls, holds the power to vote or otherwise meets a relevant
definition of ownership in excess of a number of Shares equal to (x) the number of
Shares that would give rise to reporting or registration obligations or other
requirements (including obtaining prior approval by a state or federal regulator) of
a Barclays Person under Applicable Laws and with respect to which such requirements
have not been met or the relevant approval has not been received minus (y) 1.0% of
the number of Shares outstanding on the date of determination (either such condition
described in clause (1) or (2), an “Excess Ownership Position”) and Barclays is
unable, after commercially reasonable efforts, to effect a transfer or assignment on
pricing terms and within a time period reasonably acceptable to it of all or a
portion of the Transaction pursuant to the preceding sentence such that an Excess
Ownership Position no longer exists, Barclays may designate any Scheduled Trading
Day as an Early Termination Date with respect to a portion (the “Terminated
Portion”) of the Transaction, such that an Excess Ownership Position no longer
exists. In the event that Barclays so designates an Early Termination Date with
respect to a portion of the Transaction, a payment shall be made pursuant to Section
6 of the Agreement as if (x) an Early Termination Date had been designated in
respect of a Transaction having terms identical to the Transaction and a Number of
Options equal to the Terminated Portion, (y) Counterparty shall be the sole Affected
Party with respect to such partial termination and (z) such Transaction shall be the
only Terminated Transaction (and, for the avoidance of doubt, the provisions of
paragraph 5(m) shall apply to any amount that is payable by Barclays to Counterparty
pursuant to this sentence). The “Equity Percentage” as of any day is the fraction,
expressed as a percentage, (A) the numerator of which is the number of Shares that
Barclays and any of its affiliates subject to aggregation with Barclays, 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 Barclays (“Barclays 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.

14

 

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

	 	(i)	 	Staggered Settlement. Barclays may, by notice to Counterparty on or prior to
any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares
deliverable on such Nominal Settlement Date on two or more dates (each, a “Staggered
Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:
(i) in such notice, Barclays will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date,
but not prior to the beginning of the related “Conversion Period” (as defined in the
Indenture) or delivery times and how it will allocate the Shares it is required to
deliver under “Net Share Settlement” above among the Staggered Settlement Dates or
delivery times; and (ii) the aggregate number of Shares that Barclays will deliver to
Counterparty hereunder on all such Staggered Settlement Dates and delivery times will
equal the number of Shares that Barclays would otherwise be required to deliver on such
Nominal Settlement Date.
	 
	 	(j)	 	Role of Agent. Each of Barclays and Counterparty acknowledges to and agrees
with the other party hereto and to and with the Agent that (i) the Agent is acting as
agent for Barclays under the Transaction pursuant to instructions from such party, (ii)
the Agent is not a principal or party to the Transaction, and may transfer its rights
and obligations with respect to the Transaction, (iii) the Agent shall have no
responsibility, obligation or liability, by way of issuance, guaranty, endorsement or
otherwise in any manner with respect to the performance of either party under the
Transaction, (iv) Barclays and the Agent have not given, and Counterparty is not
relying (for purposes of making any investment decision or otherwise) upon, any
statements, opinions or representations (whether written or oral) of Barclays or the
Agent, other than the representations expressly set forth in this Confirmation or the
Agreement, and (v) each party agrees to proceed solely against the other party, and not
the Agent, to collect or recover any money or securities owed to it in connection with
the Transaction. Each party hereto acknowledges and agrees that the Agent is an
intended third party beneficiary hereunder. Counterparty acknowledges that the Agent
is an affiliate of Barclays. Barclays will be acting for its own account in respect of
this Confirmation and the Transaction contemplated hereunder.
	 
	 	(k)	 	Regulatory Provisions. The time of dealing for the Transaction will be
confirmed by Barclays upon written request by Counterparty. 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.
	 
	 	(l)	 	Netting and Setoff. Obligations under the Transaction shall not be netted,
recouped or set off (including pursuant to Section 6 of the Agreement) against any
other obligations of the parties, whether arising under the Agreement, this
Confirmation, under any other agreement between the parties hereto, by operation of law
or otherwise, and no other obligations of the parties shall be netted, recouped or set
off (including pursuant to Section 6 of the Agreement) against obligations under the
Transaction, whether arising under the Agreement, this Confirmation, under any other
agreement between the parties hereto, by operation of law or otherwise, and each party
hereby waives any such right of setoff, netting or recoupment, provided that both
parties agree that subparagraph (ii) of Section 2(c) of the Agreement shall
apply to the Transaction.
	 
	 	(m)	 	Alternative Calculations and Barclays Payment on Early Termination and on
Certain Extraordinary Events. If Barclays owes Counterparty any amount in connection
with the Transaction (i) pursuant to “Consequences of Merger Events” above or Sections
12.6, 12.7 or 12.9 of the Equity Definitions or (ii) pursuant to Section 6(d)(ii) of
the Agreement (a “Payment Obligation”), Counterparty shall have the right, in its sole
discretion, to require Barclays to satisfy any such Payment Obligation by delivery of
Termination Delivery Units (as defined below) by

15

 

	 	 	 	giving irrevocable telephonic notice to Barclays, confirmed in writing within one
Scheduled Trading Day, no later than noon New York time on the Early Termination
Date or other date the Transaction is cancelled or terminated, as applicable, where
such notice shall include a representation and warranty from Counterparty that it is
not, as of the date of the telephonic notice and the date of such written notice,
aware of any material non-public information concerning itself or the Shares (where
“material” shall have the meaning set forth in paragraph 5(s) below) (“Notice of
Barclays Termination Delivery”); provided that if Counterparty does not elect to
require Barclays to satisfy its Payment Obligation by delivery of Termination
Delivery Units, Barclays shall have the right (without regard to the exceptions set
forth in clauses (i) and (ii) above), in its sole discretion, to elect to satisfy
its Payment Obligation by delivery of Termination Delivery Units, notwithstanding
Counterparty’s failure to elect or election to the contrary; and provided further
that Counterparty shall not have the right to so elect (but, for the avoidance of
doubt, Barclays shall have the right to so elect) in the event of (i) an Insolvency,
a Nationalization or a Merger Event, in each case, in which the consideration or
proceeds to be paid to holders of Shares consists solely of cash or (ii) an Event of
Default in which Counterparty is the Defaulting Party or a Termination Event in
which Counterparty is the Affected Party, which Event of Default or Termination
Event resulted from an event or events within Counterparty’s control. Within a
commercially reasonable period of time following receipt of a valid Notice of
Barclays Termination Delivery, Barclays shall deliver to Counterparty a number of
Termination Delivery Units having a fair market value (net of any brokerage and
underwriting commissions and fees, including any customary private placement fees)
equal to the amount of such Payment Obligation (such number of Termination Delivery
Units to be delivered to be determined by the Calculation Agent as the number of
whole Termination Delivery Units that could be purchased over a commercially
reasonable period of time with the cash equivalent of such Payment Obligation). If
the provisions set forth in this paragraph are applicable, the provisions of
Sections 9.9, 9.10, 9.11 (modified as described above) and 9.12 of the Equity
Definitions shall be applicable, except that all references to “Shares” shall be
read as references to “Termination Delivery Units.” “Termination Delivery Units”
means in the case of a Termination Event, Event of Default or Delisting, one Share
or, in the case of Nationalization, Insolvency or Merger Event, a unit consisting of
the number or amount of each type of property received by a holder of one Share
(without consideration of any requirement to pay cash or other consideration in lieu
of fractional amounts of any securities) in such Nationalization, Insolvency or
Merger Event; provided that if such Nationalization, Insolvency 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.

	 	(n)	 	No Collateral. Notwithstanding any provision of this Confirmation, the
Agreement, Equity Definitions, or any other agreement between the parties to the
contrary, the obligations of Counterparty under the Transaction are not secured by any
collateral.
	 
	 	(o)	 	Registration. Counterparty hereby agrees that if, in the good faith reasonable
judgment of Barclays, the Shares (“Hedge Shares”) acquired by Barclays for the purpose
of hedging its obligations pursuant to the Transaction cannot be sold in the public
market by Barclays without registration under the Securities Act, Counterparty shall,
at its election, either (i) in order to allow Barclays to sell the Hedge Shares in a
registered offering, make available to Barclays an effective registration statement
under the Securities Act and (A) enter into an agreement, in form and substance
reasonably satisfactory to Barclays, substantially in the form of an underwriting
agreement for a registered offering, (B) provide accountant’s “comfort” letters
customary in form for registered offerings of equity securities, (C) provide disclosure
opinions of nationally recognized outside counsel to Counterparty reasonably acceptable
to Barclays, (D) provide other customary opinions, certificates and closing documents
customary in form for registered offerings of equity securities and (E) afford Barclays
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 Barclays, 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

16

 

	 	 	 	clause (iii) of this paragraph shall apply at the election of Counterparty, (ii) in
order to allow Barclays to sell the Hedge Shares in a private placement, enter into
and comply with a private placement agreement substantially similar to private
placement purchase agreements customary for private placements of equity securities,
in form and substance satisfactory to Barclays (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 Barclays 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 Barclays at the closing price on
such Exchange Business Days, and in the amounts, requested by Barclays.

	 	(p)	 	Tax Disclosure. Notwithstanding anything to the contrary herein, in the Equity
Definitions or in the Agreement, and notwithstanding any express or implied claims of
exclusivity or proprietary rights, the parties (and each of their employees,
representatives or other agents) are authorized to disclose to any and all persons,
beginning immediately upon commencement of their discussions and without limitation of
any kind, the tax treatment and tax structure of the Transaction, and all materials of
any kind (including opinions or other tax analyses) that are provided by either party
to the other relating to such tax treatment and tax structure.
	 
	 	(q)	 	Status of Claims in Bankruptcy. Barclays acknowledges and agrees that this
Confirmation is not intended to convey to Barclays rights with respect to the
Transaction that are senior to the claims of common stockholders in any U.S. bankruptcy
proceedings of Counterparty; provided that nothing herein shall limit or shall be
deemed to limit Barclays’ right to pursue remedies in the event of a breach by
Counterparty of its obligations and agreements with respect to the Transaction;
provided, further, that nothing herein shall limit or shall be deemed to limit
Barclays’ rights in respect of any transactions other than the Transaction.
	 
	 	(r)	 	Securities Contract; Swap Agreement. The parties hereto agree and acknowledge
that Barclays is a “financial institution,” “swap participant” and “financial
participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the
Bankruptcy Code. The parties hereto further agree and acknowledge (A) that this
Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7)
of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in
connection herewith is a “termination value,” “payment amount” or “other transfer
obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement
payment” or a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and
(ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy
Code, with respect to which each payment and delivery hereunder or in connection
herewith is a “termination value,” a “payment amount” or “other transfer obligation”
within the meaning of Section 362 of the Bankruptcy Code and a “transfer” within the
meaning of Section 546 of the Bankruptcy Code, and (B) that Barclays is entitled to the
protections afforded by, among other sections, Section 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the
Bankruptcy Code.
	 
	 	(s)	 	No Material Non-Public Information. On each day during the period beginning on
the date on which the offering of the Convertible Notes was first announced and ending
on the day on which Barclays has informed Counterparty in writing that Barclays has
completed all purchases of Shares or other transactions to hedge initially its exposure
with respect to the Transaction, Counterparty represents and warrants to Barclays that
it is not aware of any material non-public information concerning itself or the Shares.
“Material” information for these purposes is any information to which an investor would
reasonably attach importance in reaching a decision to buy, sell or hold Shares.
	 
	 	(t)	 	Right to Extend. Barclays may postpone any Potential Exercise Date or postpone
or extend any other date of valuation or delivery with respect to some or all of the
relevant Options as applicable (in which event the Calculation Agent shall make
appropriate adjustments to the Settlement Amount for such Options), if Barclays
determines, in its reasonable discretion based on the advice of counsel to Barclays,
that such postponement or extension is reasonably necessary or appropriate

17

 

	 	 	 	to preserve Barclays’ or its affiliate’s hedging or hedge unwind activity hereunder
in light of existing liquidity conditions or to enable Barclays or its affiliate to
effect purchases of Shares in connection with its hedging, hedge unwind or
settlement activity hereunder in a manner that would, if Barclays or such affiliate
were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable
legal, regulatory or self-regulatory requirements, or with related policies and
procedures applicable to Barclays and/or such affiliate, provided that such
requirements, policies and procedures are generally applicable in similar situations
and applied to the Transaction in a non-discriminatory manner.

	 	(u)	 	Payments on Early Termination. The parties hereto agree that for the Transaction, for
the purposes of Section 6(e) of the Agreement, Loss and Second Method will apply.
	 
	 	(v)	 	Illegality. The parties agree that for the avoidance of doubt, for purposes of Section
5(b)(i) of the Agreement, “any applicable law” shall include the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010, any rules and regulations promulgated thereunder
and any similar law or regulation, without regard to Section 739 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision
in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date,
and the consequences specified in the Agreement, including without limitation, the
consequences specified in Section 6 of the Agreement, shall apply to any Illegality arising
from any such act, rule or regulation.
	 
	 	(w)	 	Governing Law. The law of the State of New York (without reference to choice
of law doctrine).
	 
	 	(x)	 	Waiver of Jury Trial. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION
OR PROCEEDING RELATING TO THE TRANSACTION. EACH PARTY (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR
PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE
OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.

6. Account Details:

	 	(a)	 	Account for payments to Counterparty:
	 
	 	 	 	InterDigital, Inc.

ABA:

Acct:

Acct No.:

	 
	 	 	 	Account for delivery of Shares to Counterparty:
	 
	 	 	 	To be provided by Counterparty.
	 
	 	(b)	 	Account for payments to Barclays:
	 
	 	 	 	Bank: 

ABA# 

BIC: 

Acct: 

Beneficiary: 

Ref: 

18

 

7. Offices:

The Office of Counterparty for the Transaction is: Inapplicable, Counterparty is not a Multibranch
Party.

The Office of Barclays for the Transaction is: Inapplicable, Barclays is not a Multibranch Party.

8. Notices:

For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Counterparty:
	 
	 	 	 	InterDigital, Inc.

781 Third Avenue

King of Prussia, Pennsylvania 19406

Attention: Scott McQuilkin

Telephone:           (+1) 610-878-1850

Facsimile:             (+1) 610-878-7844
	 
	 	(b)	 	Address for notices or communications to Barclays:
	 
	 	 	 	Barclays Capital Inc.

200 Park Avenue

New York, New York 10166

Attention:           General Counsel

Telephone:          (+1) 212-412-4000

Facsimile:            (+1) 212-412-7519
	 
	 	 	 	with a copy to:
	 
	 	 	 	Barclays Capital Inc.

745 Seventh Ave.

New York, NY 10019

Attn:                     Paul Robinson

Telephone:           (+1) 212-526-0111

Facsimile:             (+1) 917-522-0458
	 
	 	 	 	and
	 
	 	 	 	Barclays Bank PLC, 5 The North Colonnade

Canary Wharf, London E14 4BB

Facsimile:           44(20) 777 36461

Phone:                 44(20) 777 36810

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.

19

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below and returning to
Barclays a facsimile of the fully-executed Confirmation to Barclays at (+1) 917-522-0458.
Originals shall be provided for your execution upon your request.

	 	 	 	 	 
	 	Very truly yours,

BARCLAYS CAPITAL INC.

acting solely as Agent in connection with the Transaction

 	 
	 	By:  	/s/  Adam Lawlor
 	 
	 	 	Name:  	Adam Lawlor 	 
	 	 	Title:  	Authorised Signatory 	 
	 
	 	Accepted and confirmed as of the Trade Date:

INTERDIGITAL, INC.

 	 
	 	By:  	/s/  Scott A. McQuilkin
 	 
	 	 	Name:  	Scott A. McQuilkin 	 
	 	 	Title:  	Chief Financial Officer 	 

[Signature Page to Additional Bond Hedge Confirmation]

 

 

SCHEDULE A

For purposes of the Transaction, the following terms shall have the following values/meanings:

	 	 	 	 	 	 	 

	 	1.	 	 	Strike Price:

	 	USD57.6508
	 	2.	 	 	Premium:

	 	USD5,565,000.00

21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]