Document:

exv10w13

 

Exhibit 10.13

CONFORMED COPY

PERFORMANCE GUARANTEE OF

RESIDENTIAL CAPITAL, LLC

     Performance Guarantee, dated as of February 21, 2008, by Residential Capital, LLC, a Delaware
limited liability company (“Guarantor”), in favor of GMAC LLC, as Agent for the Lenders (the
“Guaranteed Party”).

1. Unconditional Guarantee. To induce the Guaranteed Party to enter into a Credit Agreement, dated
as of February 21, 2008 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), with Guarantor’s affiliate Residential Funding Company, LLC (“RFC” and,
including any surviving entity in the event of a merger, amalgamation or consolidation of RFC, the
“Obligor”), Guarantor absolutely, unconditionally and irrevocably guarantees to the Guaranteed
Party and its successors and permitted assigns from the date hereof RFC shall perform and observe
all of the terms, covenants, conditions, agreements and undertakings to be performed or observed by
RFC under the Credit Documents, including, without limitation, the obligation of RFC to distribute
Available Funds in accordance with Section 2.21 of the Credit Agreement, other than Excluded
Obligations as defined below, in accordance with the terms, being collectively called the
“Obligations”), when the same shall be required to be performed or observed under the Credit
Documents (subject to any applicable grace period with respect to such Obligations set forth in the
Credit Documents); and the Guarantor unconditionally and irrevocably agrees that it shall ensure
that RFC, the Guarantor or some other Person shall duly and punctually perform and observe each
Obligation (provided that acceptance of any such other Person’s performance shall not constitute a
novation of this Performance Guarantee). “Excluded Obligations” means (i) the payment of principal
of, or interest on, the Notes or any fees, (ii) any payment coming due as a result of the aggregate
outstanding principal balance of the Loans exceeding the Borrowing Base, provided that this clause
(ii) shall not limit the Guarantor’s obligations in respect of a failure of RFC to pay any Required
Repayment required to be paid by them under Section 2.20 of the Credit Agreement, or (iii)
Obligations arising under Section 2.13, 2.14, 2.15 or 2.16(a), (b) or (c), of the Credit Agreement.
It shall not be a condition to the obligation of the Guarantor hereunder to guarantee and ensure
the performance or observance of any of the Obligations that the Guaranteed Party shall have first
made any request of or demand upon or given any notice to the Guarantor or any other Person or have
instituted any action or proceeding against the Guarantor or any other Person in respect thereof.

2. DEFINITIONS. Capitalized terms used but not defined in this Performance Guarantee shall have
the meanings set forth in the Credit Agreement.

     “Requirements of Law”, as to any Person, the certificate of incorporation and by-laws or other
organizational or governing documents of such Person, and any law, treaty, rule or regulation
(including the Investment Company Act of 1940, as amended) or determination of an arbitrator or a
court or other Governmental Authority, in each case applicable to or binding upon such Person or
any of its property or to which such Person or any of its property is subject.

3. Nature of Guarantee. Guarantor’s obligations hereunder are unconditional and shall not be
affected by the existence, validity, enforceability, perfection or extent of any collateral, the

 

 

validity, regularity or enforceability of the Credit Documents, the absence of any action to
enforce RFC’s obligations under any of the Credit Documents, any waiver or consent by RFC with
respect to any provisions of the Credit Agreement or any other Credit Document or by any other
circumstance relating to the Obligations that might otherwise constitute a legal or equitable
discharge of or defense to this Performance Guarantee (excluding the defense of payment or statute
of limitations, neither of which is waived). Guarantor agrees that the Guaranteed Party may resort
to Guarantor for performance of any of the Obligations owed to it whether or not the Guaranteed
Party shall have resorted to any Collateral therefor or shall have proceeded against any obligor
principally or secondarily liable for any of the Obligations, including the Obligor, and whether or
not the Guaranteed Party has pursued any other remedy available to it. The Guaranteed Party shall
not be obligated to file any claim relating to the Obligations in the event that the Obligor
becomes subject to a bankruptcy, reorganization or similar proceeding, and the failure of the
Guaranteed Party to so file shall not affect Guarantor’s obligations hereunder. In the event that
any payment to the Guaranteed Party in respect of any Obligations owed to it is rescinded or must
otherwise be returned for any reason whatsoever (other than by reason of any circumstance, other
than bankruptcy or insolvency, that constitutes a legal or equitable defense available to the
Obligor), Guarantor shall remain liable hereunder with respect to such Obligations as if such
payment had not been made and the Performance Guarantee shall be reinstated, if applicable. At any
time and from time to time, upon the written request of the Guaranteed Party, and at the sole
expense of Guarantor, Guarantor will furnish such information regarding the financial well-being of
Guarantor as may be reasonably requested by the Guaranteed Party.

4. Changes in Obligations, Collateral therefor and Agreements Relating Thereto; Waiver of Certain
Notices. Guarantor agrees that the Guaranteed Party may at any time and from time to time, either
before or after the maturity thereof, with notice to and consent of Guarantor, extend the time of
payment of, exchange or surrender any Collateral (except as permitted by the Credit Agreement) for,
or renew any of the Obligations, and may also make any agreement with the Obligor for the
extension, renewal, payment, compromise, discharge or release thereof, in whole or in part, or for
any modification of the terms thereof or of any agreement between the Guaranteed Party and the
Obligor without in any way impairing or affecting this Performance Guarantee. The Guarantor
authorizes the Guaranteed Party, without notice or demand and without affecting its liability
hereunder, from time to time, to forbear, indulge or take other action or inaction in respect of
this Performance Guarantee or the Obligations, or to exercise or not exercise any right or remedy
hereunder or otherwise with respect to the Obligations. Guarantor waives notice of the acceptance
of this Performance Guarantee and of the creation, renewal, extension or accrual of Obligations,
presentment, demand for payment, non-payment, notice of dishonor and protest.

5. Expenses. Guarantor agrees to pay on demand all fees and out of pocket expenses (including the
reasonable fees and expenses of the Guaranteed Party’s counsel) in any way relating to the
enforcement or protection of the rights of the Guaranteed Party hereunder; provided, that Guarantor
shall not be liable for any expenses of the Guaranteed Party if no payment under this Performance
Guarantee is or was due.

6. Subrogation. The Guarantor shall not exercise any rights which it may have or acquire by way of
subrogation until all of the Obligations owed to it are paid in full to the Guaranteed

2

 

Party. If
any amounts are paid to the Guarantor in violation of the foregoing limitation, then such amounts
shall be held in trust for the benefit of the Guaranteed Party and shall forthwith be paid to the
Guaranteed Party to reduce the amount of outstanding Obligations, whether matured or unmatured.
Subject to the foregoing, upon payment of any of the Obligations, Guarantor shall be subrogated to
the rights of the Guaranteed Party against the Obligor with respect to such Obligations, and the
Guaranteed Party agrees to take at Guarantor’s expense such steps as Guarantor may reasonably
request to implement such subrogation.

7. Taxes. All payments by the Guarantor hereunder will be made in full without set- off or
counterclaim and free and clear of and without withholding or deduction for or on account of any
present or future taxes, duties or other charges, unless the withholding or deduction of such taxes
or duties is required by law. In any such event, however, the Guarantor shall (a) promptly notify
the Guaranteed Party, in writing, of such requirement, (b) pay to the relevant authorities the full
amount required to be deducted or withheld (including the full amount required to be deducted or
withheld from any additional amount paid to the Guaranteed Party pursuant to this paragraph), (c)
promptly forward to the Guaranteed Party an official receipt (or a certified copy) evidencing such
payment, and (d) pay to the Guaranteed Party such additional amounts as may be necessary in order
that the net amount received by the Guaranteed Party after such withholding or deduction shall
equal the full amounts of moneys which would have been received by the Guaranteed Party in the
absence of such withholding or deduction. The Guarantor will pay all stamp, transfer,
registration, documentation, or other similar taxes payable in connection with this Performance
Guarantee and will keep the Guaranteed Party indemnified against failure to pay the same.

8. No Waiver; Cumulative Rights. No failure on the part of the Guaranteed Party to exercise, and
no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise by the Guaranteed Party of any right, remedy or power
hereunder preclude any other or future exercise of any right, remedy or power. Each and every
right, remedy and power hereby granted to the Guaranteed Party or allowed it by law or other
agreement shall be cumulative and not exclusive of any other, and may be exercised by the
Guaranteed Party at any time or from time to time. This Performance Guarantee shall remain in full
force and effect until the Obligations are paid in full. None of the terms or provisions of this
Performance Guarantee may be waived, amended, supplemented or otherwise modified, and no consent
with respect to any departure by the Guarantor from the terms hereof shall be effective, except as
set forth in a written instrument executed by the Guarantor and the Guaranteed Party.

9. Representations, Warranties and Covenants.

A. Guarantor hereby represents and warrants that:

     (a) Guarantor is an organization duly organized or formed, validly existing and in good
standing under the laws of the State of Delaware and is duly qualified to do business, and is in
good standing in, every jurisdiction in which the nature of its business requires it to be so
qualified, except where the failure to be so qualified would not reasonably be expected to
have a Material Adverse Effect (as defined below);

3

 

     (b) the execution, delivery and performance of this Performance Guarantee have been and remain
duly authorized by all necessary organizational action and do not contravene any provision of (i)
Guarantor’s organizational documents, (ii) any law, rule or regulation, (iii) any contractual
restriction binding on Guarantor or its property or (iv) any order, writ, judgment, award,
injunction or decree binding on or affecting Guarantor or its property, except in the case of
clauses (ii), (iii) or (iv) where such contravention would not reasonably be expected to have a
Material Adverse Effect. This Performance Guarantee has been duly authorized, executed and
delivered by Guarantor;

     (c) all consents, licenses, clearances, authorizations and approvals of, and registrations and
declarations with, any governmental authority or regulatory body necessary for the due execution,
delivery and performance of this Performance Guarantee have been obtained and remain in full force
and effect and all conditions thereof have been duly complied with, except where the failure to so
obtain such consents, licenses, clearances, authorizations and approvals, registration or
declarations or to satisfy the conditions thereof would not reasonably be expected to have a
Material Adverse Effect, and no other action by, and, except as contemplated herein, no notice to
or filing with, any governmental authority or regulatory body is required in connection with the
execution, delivery or performance of this Performance Guarantee;

     (d) this Performance Guarantee constitutes the legal, valid and binding obligation of
Guarantor enforceable against Guarantor in accordance with its terms, subject to general principles
of equity and applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally;

     (e) Guarantor is not an “investment company” within the meaning of the Investment Company Act
of 1940, as amended from time to time, or any successor statute;

     (f) no report, information or document prepared by the Obligor or Guarantor pursuant to this
Performance Guarantee, furnished or to be furnished by the Obligor or Guarantor to the Guaranteed
Party in connection with this Performance Guarantee, is or will be inaccurate in any material
respect as of the date it is or shall be dated or (except as otherwise disclosed to the Guaranteed
Party, as the case may be, at such time) as of the date so furnished, and no such document contains
or will contain any material misstatement of fact; and

     (g) there is no action, suit, proceeding, investigation, or arbitration pending or, to
Guarantor’s knowledge, threatened against Guarantor which would reasonably be expected to result in
the occurrence of a Material Adverse Effect.

B. Guarantor covenants and agrees with the Guaranteed Party that, from and after the date
hereof:

     (a) Guarantor will (i) preserve and maintain its legal existence, except as provided in
paragraph (b) below, (ii) preserve and maintain all of its rights, privileges, licenses and
franchises to the extent that a failure to do so would reasonably be expected to result in a
Material Adverse Effect; (iii) comply with the requirements of all applicable laws, rules,
regulations and orders of Governmental Authorities and other Requirements of Law if failure to

4

 

comply with such requirements would reasonably be expected (either individually or in the
aggregate) to have a Material Adverse Effect; (iv) keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently applied; and (v) permit
representatives of the Guaranteed Party, during normal business hours upon prior written notice at
a mutually desirable time, to examine, copy and make extracts from its books, and records, to
inspect any of its properties, and to discuss its business and affairs with its officers, all to
the extent reasonably requested by the Guaranteed Party;

     (b) Guarantor shall not liquidate, wind up or dissolve itself (or suffer any liquidation,
winding up or dissolution) or sell all or substantially all of its assets, the proceeds of which
shall be used to pay any amounts then owing to the Guaranteed Party; provided, that Guarantor may
merge or consolidate with (i) any wholly owned subsidiary of Guarantor, or (ii) any other Person if
Guarantor is the surviving entity; provided further, that if after giving effect to such merger or
consolidation, no default would exist hereunder;

     (c) Guarantor shall give notice to the Guaranteed Party promptly after Guarantor becomes aware
of the occurrence of any default on the part of Guarantor under this Performance Guarantee;

     (d) (i) So long as Guarantor is required to file reports with the Securities and Exchange
Commission pursuant to Sections 13 or 15(d) of the Exchange Act, Guarantor shall deliver to the
Guaranteed Party within five business days of the date that it files such reports with the
Securities and Exchange Commission a copy of its Form 10-Q or Form 10-K, as the case may be, as
filed with the Securities and Exchange Commission (but excluding any exhibits thereto); provided
that, so long as such reports are available on a website maintained by or on behalf of the
Securities and Exchange Commission, the failure of Guarantor to provide copies of such reports to
the Guaranteed Party shall not be deemed a breach of this covenant or otherwise constitute a
default under this Performance Guarantee; and

     (ii) If Guarantor is not required to file reports with the Securities and Exchange
Commission pursuant to Sections 13 or 15(d) of the Exchange Act, Guarantor shall deliver
to the Guaranteed Party (a) as soon as available and in any event within forty-five (45)
calendar days after the end of each of the first three quarters of each fiscal year of
Guarantor, the unaudited balance sheets of Guarantor as at the end of such period and
the related unaudited consolidated statements of income for Guarantor for the portion of
the fiscal year through the end of such period, accompanied by a certificate of an
officer of Guarantor, which certificate shall state that said financial statements
fairly present in all material respects the financial condition and results of
operations of Guarantor in accordance with GAAP, consistently applied, as at the end of,
and for, such period (subject to normal year-end adjustments); and (b) as soon as
available and in any event within ninety (90) days after the end of each fiscal year of
Guarantor, the balance sheets of Guarantor as at the end of such fiscal year and the
related consolidated statements of income and retained earnings and of cash flows for
Guarantor for such year, accompanied by an opinion thereon of independent certified
public accountants of recognized national
standing, which opinion and the scope of audit shall be “acceptable to the
Guaranteed Party in its sole discretion, shall have no “going concern” qualification and
shall state

5

 

that said financial statements fairly present the financial condition and
results of operations of Guarantor as at the end of, and for, such fiscal year in
accordance with GAAP.

C. For purposes of this Performance Guarantee, “Material Adverse Effect” means a material adverse
effect on (i) the business, assets, operations, prospects or condition, financial or otherwise of
Guarantor or (ii) the ability of Guarantor to perform any of its obligations under this Performance
Guarantee.

10. Credit Agreement Trigger Event. If any “Event of Default” (as defined in the Credit Facility)
shall have occurred under the Credit Agreement, then the occurrence of such Event of Default shall
be a “Trigger Event” under this Performance Guarantee. At any time following the occurrence of a
Trigger Event hereunder, the Guaranteed Party may, at its option and among other things, require
the Guarantor or any of its Affiliates or Subsidiaries having a credit rating and payment ability
satisfactory to the Guaranteed Party promptly to issue a Performance Guarantee to the Guaranteed
Parties in substantially the same form and containing substantially the same substance as this
Performance Guarantee, and the Guarantor agrees to provide or cause to he provided such guarantee.

11. Guarantee Events of Default.

A. If any of the following events shall occur and be continuing (each, a “Guarantee Event of

Default”):

     (a) The Guarantor shall (i) fail to perform, or cause to be performed, any Obligation when due
in accordance with the terms hereof and such failure shall continue unremedied for more than five
Business Days after written notice thereof has been given to the Guarantor by the Guaranteed Party;
or

     (b) Any representation or warranty made or deemed made by the Guarantor herein or in any
certified statement furnished by it in connection with this Performance Guarantee or any Credit
Document shall prove to have been incorrect on or as of the date made or deemed made or certified
if the facts or circumstances incorrectly represented or certified result in a Material Adverse
Effect; or

     (c) The Guarantor shall default in the observance or performance of any other agreement in
this Performance Guarantee (other than as provided in paragraphs (a) and (b) of this Paragraph 11),
and such default shall continue unremedied for a period of 30 days after written notice thereof
shall have been given to the Guarantor by the Guaranteed Party; or

     (d) [reserved]

     (e) (i) The Guarantor shall commence any case, proceeding or other action (A) under any
existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with
respect to it, or seeking to adjudicate it a bankruptcy or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator

6

 

or other similar official for it or for all or any substantial part of its assets, or
the Guarantor shall make a general assignment for the benefit of its creditors; or (ii) there shall
be commenced against the Guarantor any case, proceeding or other action of a nature referred to in
clause (i) above which (A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a period of 60 days; or (iii)
there shall be commenced against Guarantor any case, proceeding or other action seeking issuance of
a warrant of attachment, execution, distraint or similar process against all or any substantial
part of its assets which results in the entry of an order for any such relief which shall not have
been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof;

     (f) One or more judgments or decrees shall (i) be entered against the Guarantor, (ii) not have
been vacated, discharged, satisfied, stayed or bonded pending appeal within 60 days from the entry
thereof and (iii) involve a liability (not paid or to the extent otherwise covered by insurance) of
$150,000,000 or more in the aggregate, in the case of all such judgments and decrees; or

     (g) A Change of Control shall have occurred;

then, and in any such event, (A) if such event is a Guarantee Event of Default specified in clause
(i) or (ii) of paragraph (e) above with respect to the Guarantor, automatically all outstanding
Loans under the Credit Agreement shall immediately terminate and all amounts owing under the Credit
Documents and this Performance Guarantee shall immediately become due and payable, and (B) if such
event is any other Guarantee Event of Default, either or both of the following actions may be
taken: (i) the Guaranteed Party may, by notice to the Guarantor and the Obligor declare all
outstanding Loans under the Credit Agreement to be terminated forthwith, whereupon such Loans shall
immediately terminate; and (ii) the Guaranteed Party may, by notice to the Guarantor and the
Obligor, declare all amounts owing under the Credit Documents and this Performance Guarantee to be
due and payable forthwith, whereupon the same shall immediately become due and payable. Except as
expressly provided above in this Paragraph 11, presentment, demand, protest and all other notices
of any kind are hereby expressly waived.

B. For purposes of this Performance Guarantee, “Indebtedness” means at any date, the amount
outstanding on such date under notes, bonds, debentures or other similar evidences of indebtedness
for money borrowed (including, without limitation, indebtedness for borrowed money evidenced by a
loan account), and “Change of Control” means the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof) of membership interests representing more than 50% of the aggregate ordinary voting
power represented by the issued and outstanding capital stock of the Guarantor, which shall not
have been approved by the Guaranteed Party (such approval not to be unreasonably withheld).

12. Assignment. Neither Guarantor nor the Guaranteed Party may assign its rights, interests or
obligations hereunder to any other Person (except by operation of law) without the prior
written consent of Guarantor or the Guaranteed Party, as the case may be; provided,
however, that if a default of the Obligor or Guarantor has occurred and is continuing, the
Guaranteed Party

7

 

may assign all or a portion of its rights and obligations under this Guaranty to
any Person, including an Affiliate of the Guaranteed Party. “Affiliate”, with respect to any
Person, means any other Person which, directly or indirectly, controls, is controlled by, or is
under common control with, such Person. For purposes of this definition, “control” (together with
the correlative meanings of “controlled by” and “under common control with”) means possession,
directly or indirectly, of the power (a) to vote 10% or more of the securities (on a fully diluted
basis) having ordinary voting power for the directors or managing general partners (or their
equivalent) of such Person, or (b) to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by contract, or otherwise.

13. Notices. All notices or demands on Guarantor or the Guaranteed Party shall be deemed effective
when received, shall be in writing and shall be delivered by hand or by registered mail, or by
facsimile transmission promptly confirmed by registered mail, addressed:

     (a) to Guarantor at:

    Residential Capital, LLC

    One Meridian Crossings

    Minneapolis, MN 55423

    Attention: Treasurer

    Telephone: 952-857-7000

    Facsimile: 952-857-7166

     (b) to the Guaranteed Party, at the address specified in Section 9.2 of the Credit
Agreement.

or to such other address or facsimile number as Guarantor shall have notified the Guaranteed Party
in a written notice delivered to the Guaranteed Party.

14. Continuing Guarantee. This Performance Guarantee shall remain in full force and effect and
shall be binding on Guarantor, its successors and permitted assigns until all of the Obligations
have been satisfied in full.

15. Indemnification. Guarantor (the “Indemnifying Party”) agrees to hold the Guaranteed Party and
each of its officers, directors and employees (each an “Indemnified Party”) harmless from and
indemnify each Indemnified Party against all liabilities, losses, damages, judgments, costs and
expenses of any kind (including reasonable fees and expenses of counsel) that may be imposed on,
incurred by or asserted against such Indemnified Party relating to or resulting from the
Indemnifying Party’s negligence, bad faith, willful misconduct or material breach of its
representations, warranties, covenants or obligations under this Performance Guarantee.

16. Governing Law. This Performance Guarantee shall be governed by and construed in accordance
with the laws of the State of New York without giving effect to the conflicts of law principles
thereof (other than section 5-1401 and 5-1402 of the New York General Obligations Law).

8

 

17. Severability. Each provision and agreement herein shall be treated as separate and independent
from any other provision or agreement herein and shall be enforceable, to the extent permitted by
law, notwithstanding the unenforceability of any such other provision or agreement

18. WAIVER OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS PERFORMANCE GUARANTEE.

19. JURISDICTION. GUARANTOR HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY COURT
OF THE STATE OF NEW YORK, BOROUGH OF MANHATTAN, OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
PERFORMANCE GUARANTEE. GUARANTOR HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION IT MAY HAVE TO,
EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING
OUT OF THIS PERFORMANCE GUARANTEE.

20. Miscellaneous. This Performance Guarantee contains the entire and exclusive agreement of the
parties hereto with reference to the matters discussed herein. This Performance Guarantee
supersedes all prior drafts and communications with respect thereto. The headings of paragraphs
herein are inserted only for convenience and shall in no way define, describe or limit the scope or
intent of any provision of this Performance Guarantee. If any term or provision of this
Performance Guarantee shall be deemed prohibited by or invalid under any applicable law, such
provision shall be invalidated without affecting the remaining provisions of this Performance
Guarantee.

9

 

     IN WITNESS WHEREOF, this Performance Guarantee has been duly executed and delivered by
Guarantor to the Guaranteed Parties as of the date first above written.

	 	 	 	 	 
	 	 	RESIDENTIAL CAPITAL, LLC,	 	 
	 

	 	as Guarantor	 	 
	 
	 	 	 	 
	 

	 	By: /s/ William F. Casey III	 	 
	 

	 	
 

	 	 
	 

	 	Name: William F. Casey III	 	 
	 

	 	Title: Sr. Managing Director & Treasurer	 	 

Guaranteeexv10w1

 

EXHIBIT 10.1

	 	 	 
	

	 	MORGAN STANLEY & CO. INCORPORATED

1585 BROADWAY

NEW YORK, NY 10036-8293

(212) 761-4000

February 25, 2008

Fixed Dollar Collared Accelerated Share Repurchase Transaction

Plexus Corp.

55 Jewelers Park Drive

Neenah, WI  54957

Dear Sir/Madam:

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions
of the Transaction entered into between Morgan Stanley & Co. Incorporated (“MSCO”) and Plexus Corp.
(the “Issuer”) on the Trade Date specified below (the “Transaction”). This confirmation
constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (as
published by the International Swaps and Derivatives Association, Inc. (“ISDA”)) (the “Equity
Definitions”) are incorporated into this Confirmation. In the event of any inconsistency between
the Equity Definitions and this Confirmation, this Confirmation will govern. Any reference to a
currency shall have the meaning contained in Annex A to the 1998 ISDA FX and Currency Option
Definitions, as published by ISDA. “Other ASR Transaction” shall mean the Fixed Dollar Collared
Accelerated Share Repurchase Transaction dated February 25, 2008 between the Issuer and MSCO.

1. This Confirmation evidences a complete and binding agreement between MSCO and Issuer as to the
terms of the Transaction to which this Confirmation relates. This Confirmation shall be subject to
an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement (the “ISDA Form”) as
if MSCO and Issuer had executed an agreement in such form without any Schedule. For the avoidance
of doubt, this Transaction and the Other ASR Transaction shall be the only transactions under the
Agreement, and all references herein to the “Agreement” shall be deemed to include the Other ASR
Transaction.

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

GENERAL TERMS:

	 	 	 
	Trade Date:

	 	As specified in Schedule I
	 
	 	 
	Buyer:

	 	Issuer
	 
	 	 
	Seller:

	 	MSCO
	 
	 	 
	Shares:

	 	Common Stock of Issuer (Ticker: PLXS)
	 
	 	 
	Number of Shares:

	 	The number of Shares delivered in accordance with
Physical Settlement below.

 

Page 2

	 	 	 
	Forward Price:

	 	A price per Share (as reasonably determined by the
Calculation Agent) equal to (i) the sum of the 10b-18
VWAP for each Trading Day during the Calculation Period
divided by (ii) the number of Trading Days in the
Calculation Period minus (iii) the Discount Percentage
(as specified in Schedule I) multiplied by the Initial
Hedge Period Reference Price; provided, however, that if
the Forward Price would otherwise be: (A) greater than
the Forward Cap Price, the Forward Price shall equal the
Forward Cap Price (as specified in Schedule I), or (B)
less than the Forward Floor Price, the Forward Price
shall equal the Forward Floor Price (as specified in
Schedule I)
	 
	 	 
	10b-18 VWAP:

	 	For each Trading Day during the Calculation Period or the
Initial Hedge Period, a price per share (as reasonably
determined by the Calculation Agent) equal to the
volume-weighted average price of the Rule 10b-18 eligible
trades in the Shares for the entirety of such Trading Day as
determined by reference to the screen entitled “PLXS.UQ
<Equity> AQR SEC” or any successor page as reported by
Bloomberg L.P.
	 
	 	 
	Calculation Period:

	 	The period from and including the first Trading Day
that occurs after the Initial Hedge Completion Date to
but excluding the relevant Valuation Date.
	 
	 	 
	Trading Day:

	 	Any Exchange Business Day that is not a Disrupted Day or an
Excluded Day (as defined below)
	 
	 	 
	Initial Shares:

	 	As specified in Schedule I
	 
	 	 
	Initial Share Delivery Date:

	 	One Exchange Business Day following the Trade
Date. On the Initial Share Delivery Date,
MSCO shall deliver a number of Shares equal
to the Initial Shares to Issuer in accordance
with Section 9.4 of the Equity Definitions,
with the Initial Share Delivery Date deemed
to be a “Settlement Date” for purposes of
such Section 9.4.
	 
	 	 
	Initial Hedge Period:

	 	The period from and including the first Trading Day
that occurs after the Trade Date to and including
the Initial Hedge Completion Date
	 
	 	 
	Initial Hedge Completion Date:

	 	The date on which MSCO completes its
initial hedge, as determined by MSCO in its
sole discretion, provided that such date
occurs no more than fifteen (15) Exchange
Business days following the Trade Date
(subject to extension or suspension in the
event of one or more Disrupted Days during
the Initial Hedge Period).

 

Page 3

	 	 	 
	Initial Hedge Period Reference Price:

	 	A price per share (as reasonably
determined by the Calculation Agent)
equal to the average price at which
MSCO purchases the Shares
constituting its initial hedge.
	 
	 	 
	Additional Shares:

	 	A number of Shares equal to (i) the Prepayment Amount
(as defined below) divided by (ii) the Forward Cap
Price minus (iii) the Initial Shares
	 
	 	 
	Additional Share Delivery Date:

	 	One Exchange Business Day following the
Initial Hedge Completion Date. On the
Additional Share Delivery Date, MSCO shall
deliver a number of Shares equal to the
Additional Shares to Issuer in accordance
with Section 9.4 of the Equity
Definitions, with the Additional Share
Delivery Date deemed to be a “Settlement
Date” for purposes of such Section 9.4.
	 
	 	 
	Prepayment:

	 	Applicable
	 
	 	 
	Prepayment Amount:

	 	As specified in Schedule I
	 
	 	 
	Commission Amount:

	 	As specified in Schedule I
	 
	 	 
	Adjustment Amount:

	 	As specified in Schedule I
	 
	 	 
	Structuring Fee:

	 	As specified in Schedule I
	 
	 	 
	Prepayment Date:

	 	One Exchange Business Day following the Trade Date. On
the Prepayment Date, Issuer shall pay to MSCO the
Prepayment Amount, the Commission Amount, the Adjustment
Amount and the Structuring Fee.
	 
	 	 
	Exchange:

	 	The Nasdaq Global Select Market
	 
	 	 
	Related Exchange:

	 	The primary exchange on which options or futures on the
relevant Shares are traded.
	 
	 	 
	Market Disruption Event:

	 	The definition of “Market Disruption Event” in
Section 6.3(a) of the Equity Definitions is
hereby amended by inserting the words “at any
time on any Scheduled Trading Day during the
Calculation Period or the Initial Hedge Period
or” after the word “material,” in the third line
thereof.
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in the
Equity Definitions, if any Scheduled Trading Day
in the Calculation Period or the Initial Hedge
Period is a Disrupted Day, the Calculation Agent
shall have the option in its reasonable
discretion (i) to determine the weighting of each
Rule 10b-18 eligible transaction in the Shares on
the relevant Disrupted Day using its commercially
reasonable judgment for purposes of calculating
the Forward Price, as applicable, (ii) to elect
to extend the Calculation Period or the Initial
Hedge Period by a number of Scheduled Trading
Days equal to the number of Disrupted Days during
the Calculation Period or the Initial Hedge
Period or (iii) to suspend the Calculation Period
or the Initial Hedge Period, as appropriate,
until the circumstances

 

Page 4

	 	 	 
	 

	 	giving rise to such
suspension have ceased. For the avoidance of
doubt, if the Calculation Agent elects the option
described in clause (i) above, then such
Disrupted Day shall be deemed to be a Trading Day
for purposes of calculating the Forward Price or
the Initial Hedge Period Reference Price, as the
case may be.
	 
	 	 
	Excluded Days:

	 	May 23, 2008
	 
	 	 
	VALUATION:
	 	 
	 
	 	 
	Valuation Time:

	 	The Scheduled Closing Time on the relevant Exchange
	 
	 	 
	Valuation Date:

	 	The earlier of (i) the Scheduled Valuation Date (as
specified in Schedule I) and (ii) any date after the
Lock-Out Date (as specified in Schedule I) specified by
MSCO to Issuer by 9:00pm New York City time on such date
as a Valuation Date, in each case, subject to extension in
accordance with “Market Disruption Event” above or Section
9 or Section 10 below; provided, however, that if a
Valuation Date occurs pursuant to clause (ii) above, then
(A) the Calculation Period for this Transaction (or
portion thereof) shall be deemed to end as of the Trading
Day immediately preceding the relevant Valuation Date and
(B) MSCO shall have the right to specify a Valuation Date
with respect to any portion of this Transaction as it
selects (any such Valuation Date on a portion of this
Transaction for less than the full Prepayment Amount, a
“Partial Acceleration Date”); provided, however, that MSCO
can elect no more than three Partial Acceleration Dates
during the term of this Transaction.
	 
	 	 
	 

	 	In the case of a Partial Acceleration Date, MSCO shall
specify in its notice to Issuer designating a Valuation
Date in connection with a Partial Acceleration Date the
percentage of the Prepayment Amount that is subject to
such Valuation Date and Calculation Agent shall adjust all
terms of this Transaction as it deems reasonable in order
to take into account the occurrence of any Partial
Acceleration Date (including cumulative adjustments to
take into account all Partial Acceleration Dates that
occur during the term of this Transaction). For the
avoidance of doubt, (i) any Settlement Amount that will be
calculated for any Valuation Date that occurs in
connection with a Partial Acceleration Date shall take
into account the percentage of the Prepayment Amount that
is subject to such Valuation Date, and for calculation
purposes shall deem only the equivalent percentage of
Initial Shares and Additional Shares to have been
previously delivered by MSCO to Issuer and (ii) any
Settlement Amount that will be calculated for any
Valuation Date that occurs after the settlement effected
in connection with the first Partial Acceleration Date
shall take into account any Shares delivered in connection
with any previous settlements effected in connection with
the occurrence of any Partial Acceleration Dates.

 

Page 5

	 	 	 
	 

	 	On each Valuation Date, Calculation Agent shall reasonably
calculate the relevant Settlement Amount.
	 
	 	 
	SETTLEMENT TERMS:
	 	 
	 
	 	 
	Physical Settlement:

	 	Applicable.
	 
	 	 
	 

	 	On the relevant Settlement Date, MSCO shall deliver
to Issuer a number of Shares equal to (a) (i) the
Prepayment Amount divided by (ii) the Forward Price
as determined on the relevant Valuation Date, minus
(b) the Initial Shares minus (c) the Additional
Shares (such number of Shares, the “Settlement
Amount”), rounded to the nearest whole number of
Shares; provided that for any Settlement Date that
occurs in connection with a Partial Acceleration Date
or on the Scheduled Valuation Date if any Partial
Acceleration Dates have occurred before the Scheduled
Valuation Date the Prepayment Amount, the Initial
Shares and Additional Shares that shall be used to
calculate such Settlement Amount shall be in
proportion to the percentage of the Prepayment Amount
that is subject to such Valuation Date or Scheduled
Valuation Date, as the case may be.
	 
	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Settlement Date:

	 	Three Exchange Business Days after the relevant
Valuation Date, or if such date is not a Clearance
System Business Day or if there is a Settlement
Disruption Event on such day, the immediately
succeeding Clearance System Business Day on which
there is no Settlement Disruption Event.

PROCEDURE FOR SETTLEMENT:

Except for delivery of Shares made in connection with the delivery of Initial Shares, each delivery
of the Shares shall be made through the relevant Clearance System at the accounts specified by the
parties on a free delivery basis, for settlement on the applicable Settlement Date in accordance
with Article 9 of the Equity Definitions; provided, however, that in Section 9.2(a)(iii) of the
Equity Definitions the words “the Excess Dividend Amount, if any, and” shall be deleted.

Share Adjustments:

	 	 	 
	Potential Adjustment Event:

	 	Notwithstanding anything to the contrary in
Section 11.2(e) of the Equity Definitions, an
Extraordinary Dividend shall not constitute a
Potential Adjustment Event.
	 
	 	 
	Extraordinary Dividend:

	 	For any fiscal quarter occurring (in whole or
in part) during the period from and including
the first day of the Initial Hedge Period to
and including the Scheduled Valuation Date,
any dividend or distribution on the Shares
with an ex-dividend date occurring both (i)
during such fiscal quarter and

 

Page 6

	 	 	 
	 

	 	(ii) prior to
the Scheduled Valuation Date (other than any
dividend or distribution of the type described
in Section 11.2(e)(i) or Section
11.2(e)(ii)(A) or (B) of the Equity
Definitions) (a “Dividend”) that is either (i)
a non-regularly scheduled Divided or (ii) the
amount or value of which (as reasonably
determined by the Calculation Agent) exceeds
the Ordinary Dividend Amount.
	 
	 	 
	Ordinary Dividend Amount:

	 	For any calendar quarter, USD0.00
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment; provided that if MSCO
suspends trading in the Shares for all or any
portion of a Trading Day within the Calculation
Period in accordance with the terms of this
Agreement, the suspension shall be treated as a
Potential Adjustment Event subject to Calculation
Agent Adjustment. In the case of a suspension
pursuant to Section 10, the Calculation Agent shall
make such adjustments prior to the period of
suspension, if it is practical to do so. Otherwise,
and in all cases of a suspension as contemplated
under “Market Disruption Event” above, the
Calculation Agent shall make such adjustments
promptly following the period of suspension.
	 
	 	 
	EXTRAORDINARY EVENTS:
	 	 
	 
	 	 
	Consequences of Merger Events:
	 	 
	 
	 	 
	Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Share-for-Other:

	 	Cancellation and Payment on that portion of the Other
Consideration that consists of cash; Modified Calculation
Agent Adjustment on the remainder of the Other
Consideration
	 
	 	 
	Share-for-Combined:

	 	Component Adjustment
	 
	 	 
	Tender Offer:

	 	Applicable
	 
	 	 
	Consequences of Tender Offers:
	 	 
	 
	 	 
	Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Share-for-Other:

	 	Cancellation and Payment on that portion of the Other
Consideration that consists of cash; Modified Calculation
Agent Adjustment on the remainder of the Other
Consideration
	 
	 	 
	Share-for-Combined:

	 	Component Adjustment

 

Page 7

For purposes of this Transaction, the definition of Merger Date in Section 12.1(c) of the Equity
Definitions shall be amended to read, “Merger Date shall mean the Announcement Date.” For purposes
of this Transaction, the definition of Tender Offer Date in Section 12.1(e) of the Equity
Definitions shall be amended to read, “Tender Offer Date shall mean the Announcement Date.”

	 	 	 
	Composition of Combined
Consideration:

	 	Applicable
	 
	 	 
	Nationalization, Insolvency
or Delisting:

	 	Negotiated Closeout
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Hedging Disruption:

	 	Applicable; provided that Section 12.9(a)(v) of the
Equity Definitions is hereby amended by adding the
phrase “for at least one full Exchange Day”
immediately following the word “efforts” in the second
line thereof.
	 
	 	 
	Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	Loss of Stock Borrow:

	 	Applicable
	Maximum Stock Loan Rate:

	 	100bps
	 
	 	 
	Increased Cost of Stock Borrow:

	 	Applicable
	Initial Stock Loan Rate:

	 	25bps
	 
	 	 
	Determining Party:

	 	For all Extraordinary Events, MSCO
	 
	 	 
	Hedging Party:

	 	For all Additional Disruption Events, MSCO
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	AGREEMENTS AND ACKNOWLEDGMENTS:
	 	 
	 
	 	 
	Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	3. Calculation Agent:

	 	MSCO. Following any calculation by the Calculation
Agent hereunder, upon a prior written request by
Issuer, the Calculation Agent will provide to
Issuer by e-mail to the e-mail address provided by
Issuer in such a prior written request a report (in
a commonly used file format for the storage and
manipulation of financial data) displaying in
reasonable detail the basis for such calculation.
	 
	 	 
	4. Account Details:

	 	To be provided.

 

Page 8

5. (a) Nationalization or Insolvency. The words “the Transaction will be cancelled,” in the first
line of Section 12.6(c)(ii) of the Equity Definitions are replaced with the words “MSCO will have
the right to cancel this Transaction,”.

     (b) Additional Termination Event. The declaration of any Extraordinary Dividend by Issuer
during the period from and including the Trade Date to but excluding the last Valuation Date to
occur in connection with this Transaction shall constitute an Additional Termination Event with
this Transaction as the only “Affected Transaction” and Issuer as the sole “Affected Party”.

     (c) For the avoidance of doubt, this Transaction shall be deemed to be a “Forward Transaction”
for purposes of the Equity Definitions; provided, however, that in Section
9.2(a)(iii) of the Equity Definitions the words “the Excess Dividend Amount, if any, and” shall be
deleted.

6. Certain Payments and Deliveries by MSCO. Notwithstanding anything to the contrary herein, or
in the Equity Definitions, if at any time (i) an Early Termination Date occurs and MSCO would be
required to make a payment pursuant to Sections 6(d) and 6(e) of the Agreement, (ii) a Tender Offer
occurs and MSCO would be required to make a payment pursuant to Sections 12.3 and 12.7 of the
Equity Definitions, (iii) a Merger Event occurs and MSCO would be required to make a payment
pursuant to Sections 12.2 and 12.7 of the Equity Definitions or (iv) an Additional Disruption Event
occurs and MSCO would be required to make a payment pursuant to Sections 12.8 and 12.9 of the
Equity Definitions, then Issuer shall have the option to require MSCO to make such payment in cash
or to settle such payment amount in Shares (any such payment described in Sections 6(i), (ii),
(iii), or (iv) above, an “MSCO Payment Amount”). If Issuer elects for MSCO to settle an MSCO
Payment Amount in Shares, then on the date such MSCO Payment Amount is due, a Settlement Balance
shall be established with an initial balance equal to the MSCO Payment Amount. On such date, MSCO
shall commence purchasing Shares for delivery to Issuer. At the end of each Trading Day on which
MSCO purchases Shares pursuant to this Section 6, MSCO shall reduce the Settlement Balance by the
amount paid by MSCO to purchase the Shares purchased on such Trading Day. MSCO shall deliver any
Shares purchased on a Trading Day to Issuer on the third Exchange Business Day following the
relevant Trading Day. MSCO shall continue purchasing Shares until the Settlement Balance has been
reduced to zero.

7. Certain Payments and Deliveries by Issuer. Notwithstanding anything to the contrary herein, or
in the Equity Definitions, if at any time (i) an Early Termination Date occurs and Issuer would be
required to make a payment pursuant to Sections 6(d) and 6(e) of the Agreement, (ii) a Tender Offer
occurs and Issuer would be required to make a payment pursuant to Sections 12.3 and 12.7 of the
Equity Definitions, (iii) a Merger Event occurs and Issuer would be required to make a payment
pursuant to Sections 12.2 and 12.7 of the Equity Definitions or (iv) an Additional Disruption Event
occurs and Issuer would be required to make a payment pursuant to Sections 12.8 and 12.9 of the
Equity Definitions (any such payment described in Sections 7(i), (ii), (iii), or (iv) above, an
“Early Settlement Payment”), then Issuer shall have the option, in lieu of making such cash
payment, to settle its payment obligations under Sections 7(i), (ii), (iii), or (iv) above in
Shares (such Shares, the “Early Settlement Shares”). In order to elect to deliver Early Settlement
Shares, (A) Issuer must notify MSCO of its election by no later than 4 p.m. New York City time on
the date that is three Exchange Business Days before the date that the Early Settlement Payment is
due, (B) Issuer must specify whether such Early Settlement Shares are to be sold by means of a
registered offering or by means of a private placement and (C) the conditions described in Section
8 below must be satisfied on each day Early Settlement Shares are to be sold by MSCO in connection
with Issuer’s election to deliver Early Settlement Shares in connection with the settlement of an
Early Settlement Payment.

8. Conditions to Delivery of Early Settlement Shares.

Issuer may only deliver Early Settlement Shares and Make-Whole Shares (as defined below) subject to
satisfaction of the following conditions:

 

Page 9

     (a) If Issuer timely elects to deliver Early Settlement Shares and Make-Whole Shares by means
of a registered offering, the following provisions shall apply:

     (i) On the later of (A) the Trading Day following the Issuer’s election to deliver
Early Settlement Shares and any Make-Whole Shares by means of a registered offering (the
“Registration Notice Date”), and (B) the date on which the Registration Statement is
declared effective by the SEC or becomes effective (the “Registered Share Delivery Date”),
the Issuer shall deliver to MSCO a number of Early Settlement Shares equal to the quotient
of (I) the relevant Early Settlement Payment divided by (II) a price per
Share as reasonably determined by the Calculation Agent based on prevailing market prices
for the Shares. For the avoidance of doubt, the Registered Share Delivery Date shall be
deemed to be the Settlement Date if this Section 8(a) shall apply.

     (ii) Promptly following the Registration Notice Date, the Issuer shall file with the
SEC a registration statement (“Registration Statement”) covering the public resale by MSCO
of the Early Settlement Shares and any Make-Whole Shares (collectively, the “Registered
Securities”) on a continuous or delayed basis pursuant to Rule 415 (or any similar or
successor rule), if available, under the Securities Act; provided that no such filing shall
be required pursuant to this paragraph (ii) if the Issuer shall have filed a similar
registration statement with unused capacity at least equal to the relevant Early Settlement
Payment and such registration statement has become effective or been declared effective by
the SEC on or prior to the Registration Notice Date and no stop order is in effect with
respect to such registration statement as of the Registration Notice Date.  The Issuer
shall use its best efforts to file an automatic shelf registration statement or have the
Registration Statement declared effective by the SEC as promptly as possible.

     (iii) Promptly following the Registration Notice Date, the Issuer shall afford MSCO a
reasonable opportunity to conduct a due diligence investigation with respect to the Issuer
customary in scope for underwritten offerings of equity securities (including, without
limitation, the availability of senior management to respond to questions regarding the
business and financial condition of the Issuer and the right to have made available to MSCO
for inspection all financial and other records, pertinent corporate documents and other
information reasonably requested by MSCO), and MSCO shall be satisfied in all material
respects with the results of such due diligence investigation of the Issuer. For the
avoidance of doubt, the Issuer shall not have the right to deliver Shares pursuant to this
Section 8(a) (and the conditions to delivery of Early Settlement Shares specified in this
Section 8(a) shall not be satisfied) until MSCO is satisfied in all material respects with
the results of such due diligence investigation of the Issuer.

     (iv) From the effectiveness of the Registration Statement until all Registered
Securities have been sold by MSCO, the Issuer shall, at the request of MSCO, make available
to MSCO a printed prospectus relating to the Registered Securities in form and substance
(including, without limitation, any sections describing the plan of distribution)
satisfactory to MSCO (a “Prospectus”, which term shall include any prospectus supplement
thereto), in such quantities as Morgan shall reasonably request.

     (v) The Issuer shall use its best efforts to prevent the issuance of any stop order
suspending the effectiveness of the Registration Statement or of any order preventing or
suspending the use of any Prospectus and, if any such order is issued, to obtain the
lifting thereof as soon thereafter as is possible.  If the Registration Statement, the
Prospectus or any document incorporated therein by reference contains a misstatement of a
material fact or omits to state a material fact required to be stated therein or necessary
to make any statement therein not misleading, the Issuer shall as promptly as practicable
file any required document and prepare and furnish to MSCO a reasonable number of copies of
such supplement or amendment thereto as may be necessary so that the Prospectus, as
thereafter delivered to the purchasers of the Registered Securities will not contain a
misstatement of a material fact or omit to state a material fact required to be stated
therein or necessary to make any statement therein not misleading.

 

Page 10

     (vi) On or prior to the Registered Share Delivery Date, the Issuer shall enter into an
agreement (a “Transfer Agreement”) with MSCO (or any affiliate of MSCO designated by MSCO)
in connection with the public resale of the Registered Securities, substantially similar to
underwriting agreements customary for underwritten offerings of equity securities, in form
and substance reasonably satisfactory to MSCO (or such affiliate), which Transfer Agreement
shall (without limitation of the foregoing):

     (A) contain provisions substantially similar to those contained in such
underwriting agreements relating to the indemnification of, and contribution in
connection with the liability of, MSCO and its affiliates,

     (B) provide for delivery to MSCO (or such affiliate) of customary letters and
opinions (including, without limitation, accounting comfort letters, opinions
relating to the due authorization, valid issuance and fully paid and non-assessable
nature of the Registered Securities and negative assurance concerning the lack of
material misstatements and omissions in the Registration Statement, the Prospectus
and the Issuer’s filings under the Exchange Act of 1934, as amended and modified
(the “Exchange Act”)); and

     (C) provide for the payment by the Issuer of all fees and expenses in
connection with such resale, including all registration costs and all fees and
expenses of counsel for MSCO (or such affiliate), but excluding any underwriting
fee.

     (vii) On the Registered Share Delivery Date, a balance (the “Settlement Balance”)
shall be established with an initial balance equal to the applicable amount of the relevant
Early Settlement Payment.  Following the delivery of Early Settlement Shares or any
Make-Whole Shares, MSCO shall sell all such Early Settlement Shares or Make-Whole Shares in
a commercially reasonable manner.

     (viii) At the end of each day upon which sales have been made, the Settlement Balance
shall be reduced by an amount equal to the aggregate proceeds received by MSCO upon
settlement of the sale of such Share.

     (ix) If, on any date, the Settlement Balance has been reduced to zero but not all of
the Early Settlement Shares have been sold, no additional Early Settlement Shares shall be
sold and MSCO shall promptly deliver to the Issuer (A) any remaining Early Settlement
Shares and (B) if the Settlement Balance has been reduced to an amount less than zero, an
amount in cash equal to the absolute value of the then-current Settlement Balance;
provided, however, that MSCO shall take all reasonable efforts to ensure that the
Settlement Balance does not get reduced to an amount less than zero.

     (x) If, on any date, all of the Early Settlement Shares have been sold and the
Settlement Balance has not been reduced to zero, the Issuer shall promptly deliver to MSCO
an additional number of Shares (“Make-Whole Shares”) equal to (A) the Settlement Balance as
of such date divided by (B) the price per Share as reasonably determined by the Calculation
Agent based on prevailing market prices for the Shares. This clause (x) shall be applied
successively until the Settlement Balance is reduced to zero.

     (xi) If at any time the number of Shares covered by the Registration Statement is
less than the number of Registered Securities required to be delivered pursuant to this
Section 8(a), the Issuer shall, at the request of MSCO, file additional registration
statement(s) to register the sale of all Registered Securities required to be delivered to
MSCO.

     (xii) The Issuer shall cooperate with MSCO and use its reasonable best efforts to take
any other action necessary to effect the intent of the provisions set forth in this Section
8(a).

 

Page 11

     (b) If Issuer timely elects to deliver Early Settlement Shares and Make-Whole Shares by means
of a private placement, the following provisions shall apply:

     (i) all Early Settlement Shares and Make-Whole Shares shall be delivered to MSCO (or
any affiliate of MSCO designated by MSCO) pursuant to the exemption from the registration
requirements of the Securities Act provided by Section 4(2) thereof;

     (ii) MSCO and any potential purchaser of any such Shares from MSCO (or any affiliate
of MSCO designated by MSCO) identified by MSCO shall have been afforded a commercially
reasonable opportunity to conduct a due diligence investigation with respect to Issuer
customary in scope for private placements of equity securities (including, without
limitation, the right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably requested by them)
and Issuer shall not disclose material non-public information in connection with such due
diligence investigation; provided, however, if MSCO is not reasonably satisfied with such
due diligence investigation or no such investigation is afforded to MSCO due to
circumstances at Issuer that make such investigation impractical, then such dissatisfaction
or the failure by Issuer to afford MSCO with such opportunity to conduct a due diligence
investigation shall not provide a basis for MSCO to refuse to accept the Early Settlement
Shares and Make-Whole Shares by means of a private placement; provided, further, for the
avoidance of doubt, MSCO’s dissatisfaction with the due diligence investigation or the
failure by Issuer to afford MSCO with such opportunity to conduct a due diligence
investigation may be used as a factor by MSCO in determining the per share value of the
Early Settlement Shares pursuant to Section 8(b)(v) below; and

  

     (iii) an agreement (a “Private Placement Agreement”) shall have been entered into
between Issuer and MSCO (or any affiliate of MSCO designated by MSCO) in connection with the
private placement of such Shares by Issuer to MSCO (or any such affiliate) and the private
resale of such Shares by MSCO (or any such affiliate), substantially similar to private
placement purchase agreements customary for private placements of equity securities, in form
and substance commercially reasonably satisfactory to MSCO and the Issuer, which Private
Placement Agreement shall include, without limitation, provisions substantially similar to
those contained in such private placement purchase agreements relating to the
indemnification of, and contribution in connection with the liability of, MSCO and its
affiliates, and shall provide for the payment by Issuer of all fees and expenses in
connection with such resale, including all reasonable fees and expenses of one counsel for
MSCO but not including any underwriter or broker discounts and commissions, and shall
contain representations, warranties and agreements of Issuer and MSCO reasonably necessary
or advisable to establish and maintain the availability of an exemption from the
registration requirements of the Securities Act for such resales. For the avoidance of
doubt, the parties agree that the Private Placement Agreement shall be signed immediately
after all terms of the Private Placement Agreement are agreed.

     (iv) If Issuer elects to deliver Early Settlement Shares to satisfy its payment
obligation of an Early Settlement Payment, neither Issuer nor MSCO shall take or cause to
be taken any action that would make unavailable either (i) the exemption set forth in
Section 4(2) of the Securities Act for the sale of any Early Settlement Shares or
Make-Whole Shares by Issuer to MSCO or (ii) an exemption from the registration requirements
of the Securities Act reasonably acceptable to MSCO for resales of Early Settlement Shares
and Make-Whole Shares by MSCO.

     (v) On the date reasonably requested by MSCO (which such date shall not be greater than
five Business Days following the signing of the Private Placement Agreement), (A) Issuer
shall deliver a number of Early Settlement Shares equal to the quotient of (I) the relevant
Early Settlement Payment divided by (II) a per share value, determined by MSCO in a
commercially reasonable manner based on indicative bids from institutional “accredited
investors” (as defined in Rule 501 under the Securities

 

Page 12

Act of 1933, as amended (the “Securities Act”)), and (B) the provisions of Sections
8(a)(vii) –(x) shall apply to the Early Settlement Shares delivered pursuant to this Section
8(b)(v). For purposes of applying the foregoing, the Registered Share Delivery Date
referred to in 8(a)(vii) shall be the date on which Issuer delivers the Early Settlement
Shares.

     (vi) For the avoidance of doubt nothing in this Section 8(b) shall be read as requiring
Issuer to deliver cash in respect of the settlement of the transactions contemplated by the
Agreement.

     (c) The provisions of Section 8(b) shall apply to any then-current Settlement Balance if (i)
for a period of at least ten (10) consecutive Exchange Business Days, Issuer cannot satisfy any of
the conditions of Section 8(a) or (ii) for a period of at least ten (10) consecutive Exchange
Business Days, MSCO has reasonably determined that it is inadvisable to effect sales of Registered
Securities.

     (d) If Issuer elects to deliver Early Settlement Shares to satisfy its payment obligation of
an Early Settlement Payment, then, if necessary, Issuer shall use its best efforts to cause the
number of authorized but unissued Shares of Common Stock to be increased to an amount sufficient to
permit Issuer to fulfill its obligations to satisfy its payment obligation of an Early Settlement
Payment by delivering Early Settlement Shares.

9. Special Provisions for Merger Events. Notwithstanding anything to the contrary herein or in
the Equity Definitions, to the extent that an Announcement Date for a potential Merger Transaction
occurs during the term of this Transaction and such Announcement Date does not cause this
Transaction to terminate in whole under the provisions of “Extraordinary Event” in paragraph 2
above:

     (a) As soon as practicable following the public announcement of such potential Merger
Transaction, Issuer shall provide MSCO with written notice of such announcement;

     (b) Promptly after request from MSCO, Issuer shall provide MSCO with written notice specifying
(i) Issuer’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 MSCO or
its affiliates and (ii) the number of Shares purchased pursuant to the block purchase 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 Issuer to MSCO
that such information is true and correct. Issuer understands that MSCO will use this information
in calculating the trading volume for purposes of Rule 10b-18; and

     (c) MSCO in its sole discretion may extend the Calculation Period to account for any reduction
in the number of Shares that could be purchased on each day during the Calculation Period in
compliance with Rule 10b-18 following the Announcement Date.

   “Merger Transaction” means any merger, acquisition or similar transaction involving a
recapitalization of Issuer as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

10. MSCO Adjustments. In the event that MSCO reasonably determines that it is appropriate with
regard to any legal, regulatory or self-regulatory requirements or related policies and procedures
(whether or not such requirements, policies or procedures are imposed by law or have been
voluntarily adopted by MSCO and are generally applicable to transactions of the same type as the
Transaction, and including, without limitation, Rule 10b-18, Rule 10b-5, Regulation 13D-G and
Regulation 14E, “Requirements”), for MSCO to refrain from purchasing Shares or to purchase fewer
than the number of Shares MSCO would otherwise purchase on any Trading Day during the duration of
this Transaction, then MSCO may, in its discretion, elect that the Initial Hedge Period or the
Calculation Period, as the case may be, be suspended and, if appropriate, extended with regard to
any Requirements. MSCO shall promptly (and in any event no later than the close of the next
Exchange Business Day) notify the Issuer upon the exercise of MSCO’s rights pursuant to this
Section 10 and shall subsequently notify the Issuer on the day MSCO believes that the circumstances
giving rise to such

 

Page 13

exercise have changed. If the Initial Hedge Period or the Calculation Period is suspended pursuant
to this Section 10, at the end of such suspension MSCO shall determine the number of Trading Days
remaining in the Calculation Period, as appropriate, and the terms of this Transaction shall be
adjusted as set forth above under “Physical Settlement.” Any such suspension by MSCO pursuant to
the foregoing provisions shall not exceed 45 calendar days to the extent that such suspension
arises out of policies, procedures or requirements that MSCO has adopted.

11. Covenants.

(a) The Issuer covenants and agrees:

     (i)(a) that it will not treat this Transaction, any portion hereof, or any obligation
hereunder as giving rise to any interest income or other inclusions of ordinary income; (b) it will
not treat the delivery of any portion of the Shares or cash to be delivered pursuant to this
Transaction as the payment of interest or ordinary income; (c) it will treat this Transaction in
its entirety as a forward contract for the delivery of such Shares or cash; and (d) it will not
take any action (including filing any tax return or form or taking any position in any tax
proceeding) that is inconsistent with the obligations contained in (a) through (c).
Notwithstanding the preceding sentence, Issuer may take any action or position required by law,
provided that Issuer delivers to MSCO an unqualified opinion of counsel, nationally recognized as
expert in Federal tax matters and acceptable to Issuer, to the effect that such action or position
is required by a statutory change or a Treasury regulation or applicable court decision published
after the Trade Date;

     (ii) that during the period from and including the Trade Date to and including the final
Settlement Date, neither it nor any of its affiliates, to the extent the purchases of such
affiliates would be aggregated with those of the Issuer as purchases of affiliated purchasers for
purposes of Rule 10b-18 under the Exchange Act, shall directly or indirectly (which shall be deemed
to include the writing or purchase of any cash-settled derivative instrument) purchase Shares (or
any security convertible into or exchangeable for Shares) without the prior written approval of
MSCO or take any other action that would cause the purchase by MSCO of any Shares in connection
with this Agreement not to comply with Rule 10b-18 under the Exchange Act (assuming for the
purposes of this paragraph that such Rule were otherwise applicable to such purchases); provided,
however, that the foregoing shall not limit Issuer’s ability (A) pursuant to its employee stock
option plans, to re-acquire Shares in connection with exercises of stock options in which the
employee pays the exercise price in Shares or to limit Issuer’s ability to withhold shares to cover
tax liabilities associated with the exercise of such options or the vesting of restricted stock,
and in connection with any such purchase Issuer will be deemed to represent to MSCO that such
purchase does not constitute a “Rule 10b-18 Purchase” (as defined in Rule 10b-18) and (B) to
purchase Shares in an amount and manner that would not cause the purchase by MSCO of any Shares in
connection with this Agreement not to comply with Rule 10b-18 under the Exchange Act. During this
time, any purchases of Shares by Issuer shall be made through MSCO and in compliance with Rule
10b-18 by executing an Agreement in the form attached hereto as Annex A or otherwise in a manner
that Issuer and MSCO believe is in compliance with applicable requirements. Each such purchase by
Issuer of the Shares shall be disregarded for purposes of determining any Settlement Amount. This
subparagraph (ii) shall not restrict any purchases by Issuer of Shares effected during any
suspension of the Calculation Period in accordance with Section 10 herein, and purchases during
such suspension shall be disregarded in calculating any Settlement Amount;

     (iii) to comply with all laws, rules and regulations applicable to it (including, without
limitation, the Securities Act of 1933, as amended (the “Securities Act”) and the Exchange Act) in
respect of matters within its power in connection with the transactions contemplated by this
Confirmation; provided that each party shall be entitled to rely conclusively on any information
communicated by the other party concerning such other party’s market activities;

     (iv) that it is not relying, and has not relied, upon MSCO or any of its representatives or
advisors with respect to the legal, accounting, tax or other implications of this Agreement and
that it has conducted its own analyses of the legal, accounting, tax and other implications of this
Agreement, and that MSCO and its affiliates may from time to time effect transactions for their own
account or the account of customers and hold

 

Page 14

positions in securities or options on securities of the Issuer and that MSCO and its
affiliates may continue to conduct such transactions during the term of this Agreement; and

     (v) that neither it nor any affiliates shall take any action that would cause Regulation M
under the Exchange Act (“Regulation M”), to be applicable to any purchases of Shares, or any
security for which Shares is a reference security (as defined in Regulation M), by Issuer or any
affiliated purchasers (as defined in Regulation M) during the Calculation Period.

(b) MSCO covenants and agrees that with respect to the purchase of any Shares in connection with
this Agreement (except for any purchases made by MSCO during the Calculation Period in connection
with dynamic hedge adjustments of MSCO’s exposure to the Transaction as a result of any equity
optionality contained in such Transaction), MSCO shall make any such purchase in a manner that MSCO
reasonably believes, based on the representations and warranties set forth herein and any other
information provided to MSCO by Issuer, would meet the requirements of the safe harbor under the
provisions of Rule 10b-18 as if such purchases were made by Issuer; provided,
however, that it is understood and agreed that MSCO will not be obligated to comply with
this paragraph in connection with MSCO’s ability to declare a Valuation Date other than the
Scheduled Valuation Date or if an Event of Default, Additional Disruption Event, Extraordinary
Event or Additional Termination Event occurs; provided, further, that Seller shall
take into account Shares purchased in connection with the Other ASR Transaction in making its
determinations as to whether such purchases would meet such requirements if they had been made by
Buyer pursuant to this Section 11(b).

12. Representations, Warranties and Acknowledgments.

(a) The Issuer hereby represents and warrants to MSCO that:

     (i) as of the date hereof, the Issuer (A) is not in possession of any material, non-public
information with respect to the Issuer or any of its securities, and is entering into this
Agreement in good faith and not as part of a plan or scheme to evade the prohibitions of Rule
10b5-1 of the Exchange Act and (B) agrees not to alter or deviate from the terms of this Agreement
or enter into or alter a corresponding or hedging transaction or position with respect to the
Shares (including, without limitation, with respect to any securities convertible or exchangeable
into the Shares) (other than, for the avoidance of doubt, the Other ASR Transaction) during the
term of this Agreement;

     (ii) the transactions contemplated by this Confirmation have been authorized under Issuer’s
publicly announced program to repurchase Shares;

     (iii) the Issuer is not entering into this Agreement to facilitate a distribution of the
Shares (or any security convertible into or exchangeable for Shares) or in connection with a future
issuance of securities except pursuant to the Issuer’s employee benefit plans (including equity
plans for directors and employees) and dividend reinvestment plan or other publicly disclosed
transaction;

     (iv) the Issuer is not entering into this Agreement to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or to violate
the Exchange Act; and

     (v) the Issuer is as of the date hereof, and after giving effect to the transactions
contemplated hereby will be, Solvent. As used in this paragraph, the term “Solvent” means, with
respect to a particular date, that on such date (A) the present fair market value (or present fair
saleable value) of the assets of the Issuer is not less than the total amount required to pay the
liabilities of the Issuer on its total existing debts and liabilities (including contingent
liabilities) as they become absolute and matured, (B) the Issuer is able to realize upon its assets
and pay its debts and other liabilities, contingent obligations and commitments as they mature and
become due in the normal course of business, (C) assuming consummation of the transactions as
contemplated by this Agreement, the Issuer is not incurring debts or liabilities beyond its ability
to pay as such debts and liabilities mature, (D) the Issuer is not engaged in any business or
transaction, and does not propose to engage

 

Page 15

in any business or transaction, for which its property would constitute unreasonably small
capital after giving due consideration to the prevailing practice in the industry in which the
Issuer is engaged and (E) the Issuer is not a defendant in any civil action that could reasonably
be expected to result in a judgment that Issuer is or would become unable to satisfy.

(b) MSCO and the Issuer each hereby acknowledges that any transactions by MSCO in the Shares will
be undertaken by MSCO, as the case may be, as principal for its own account. All of the actions to
be taken by MSCO in connection with this Agreement, shall be taken by MSCO independently and
without any advance or subsequent consultation with the Issuer.

(c) It is the intent of the parties that this Confirmation and this Transaction comply with the
requirements of Rule 10b5-1(c)(1)(i) (A) and (B) of the Exchange Act. The parties agree that the
Agreement shall be interpreted to comply with the requirements of Rule 10b5-1(c).

13. Acknowledgements of Issuer Regarding Hedging and Market Activity. Issuer agrees, understands
and acknowledges that:

	 	(a)	 	during the period from (and including) the Trade Date to (and including) the
final Settlement Date, MSCO and its affiliates may buy or sell Shares or other
securities or buy or sell options or futures contracts or enter into swaps or other
derivative securities in order to adjust its hedge position with respect to the
transactions contemplated by this Transaction;  
	 
	 	(b)	 	MSCO and its affiliates also may be active in the market for the Shares other
than in connection with hedging activities in relation to the transactions contemplated
by this Transaction; 
	 
	 	(c)	 	MSCO shall make its own determination as to whether, when and in what manner
any hedging or market activities in the Issuer’s securities shall be conducted and
shall do so in a manner that it deems appropriate to hedge its price and market risk
with respect to 10b-18 VWAP; and
	 
	 	(d)	 	any market activities of MSCO and its affiliates with respect to the Shares may
affect the market price and volatility of the Shares, as well as the 10b-18 VWAP, each
in a manner that may be adverse to Issuer.

14. Indemnification.

     (a) In the event MSCO is required to defend a claim in any action, proceeding or
investigation brought by or on behalf of a third party in connection with any matter referred to in
this Agreement, MSCO will give Issuer written notice of any such claim and Issuer will undertake
the defense thereof by representatives chosen by Issuer and reasonably acceptable to MSCO. Failure
to give such notice shall not affect Issuer’s duty or obligations under this Section 14(a), except
to the extent Issuer is materially prejudiced thereby. So long as Issuer is defending any such
claim actively and in good faith, MSCO shall not settle such claim. MSCO shall make available to
Issuer or its representatives all records and other materials required by them and in the
possession or under the control of MSCO, for the use of Issuer and its representatives in defending
any such claim, and shall in other respects give reasonable cooperation in such defense. If
Issuer, within a reasonable time after notice of any such claim, fails to defend such claim
actively and in good faith, MSCO will (upon further notice) have the right to undertake the
defense, compromise or settlement of such claim or consent to the entry of a judgment with respect
to such claim. The Issuer also will indemnify and hold MSCO harmless against any losses, claims,
damages or liabilities to which it may become subject in connection with any matter referred to in
this Agreement, except to the extent that any such loss, claim, damage or liability results from
(i) MSCO’s breach of this Agreement, (ii) the gross negligence or bad faith of MSCO or (iii) any
trading, hedging

 

Page 16

or other transactional losses incurred by MSCO through its own trading and/or hedging
decisions and actions in the course of effecting the transactions which are the subject of this
Agreement (collectively with clauses (i) and (ii), the “Excluded Losses”); provided, however, that
if it is determined by a court of competent jurisdiction in a final judgment that MSCO is not
entitled to be indemnified hereunder in connection with such matter, then MSCO shall reimburse the
Issuer for any expenses paid pursuant to the first sentence of this Section 14. If for any reason
the foregoing indemnification is unavailable to MSCO or insufficient to hold it harmless (except to
the extent resulting from Excluded Losses), then the Issuer shall contribute to the amount paid or
payable by MSCO as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the Issuer on one hand and MSCO on the other hand with
respect to such loss, claim, damage, or liability and any other relevant equitable considerations
(except to the extent that any such loss, claim, damage or liability results from Excluded Losses).
The reimbursement, indemnity and contribution obligations of the Issuer under this Section 14
shall be in addition to any liability which the Issuer may otherwise have, shall extend upon the
same terms and conditions to any affiliate of MSCO and the partners, directors, officers, agents,
employees and controlling persons (if any), as the case may be, of MSCO and any such affiliate (it
being understood, however, that Issuer shall not be liable for the fees and expenses of more than
one counsel (other than local counsel) for all indemnified parties) and shall be binding upon and
inure to the benefit of any successors, assigns, heirs and personal representatives of the Issuer,
MSCO, any such affiliate and any such person. The Issuer also agrees that neither MSCO nor any of
such affiliates, partners, directors, officers, agents, employees or controlling persons shall have
any liability to the Issuer for or in connection with any matter referred to in this Agreement
except to the extent that any losses, claims, damages, liabilities or expenses incurred by the
Issuer result from MSCO’s breach of this Agreement or the gross negligence or bad faith of MSCO in
effecting the transactions that are the subject of this Agreement. The foregoing provisions shall
survive any termination or completion of this Agreement.

     (b) Subject to Section 14(c), the reimbursement, indemnity and contribution obligations of
the Issuer under Section 14(a) (each, an “Obligation”) shall be paid promptly in cash provided that
in each instance there is presented to the Issuer a reasonably detailed accounting.

     (c) In connection with any Obligation under Section 14(b) above, the Issuer, in lieu of
making any cash payment as contemplated by that section, may elect to satisfy such Obligation by
delivering Shares to MSCO (such Shares, the “Indemnity Shares”) by notifying MSCO of such election
within one Trading Day of being informed by MSCO that such Obligation is due and payable. The
provisions of “Certain Payments and Deliveries by Issuer” in Section 7 above shall apply to such a
share settlement of an Obligation as if the relevant Obligation was the “Early Settlement Payment”
and the Indemnity Shares were “Early Settlement Shares”. In order to elect to deliver Indemnity
Shares, Issuer must (i) specify whether such Indemnity Shares are to be sold by means of a
registered offering or by means of a private placement and (ii) the conditions described in Section
8 above must be satisfied as if the Indemnity Shares were “Early Settlement Shares” and any
additional Shares Issuer delivers to reduce the settlement balance to zero in connection with this
Section 14 were “Make-Whole Shares”.

15. The parties hereto agree and acknowledge that MSCO is a “financial participant” within the
meaning of Section 101(22) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge that this Transaction is either (i) a “securities
contract” as such term is defined in Section 741(7) of the Bankruptcy Code, in which case each
payment and delivery made pursuant to this Transaction is a “settlement payment”, as such term is
defined in Section 741(8) of the Bankruptcy Code, and that MSCO is entitled to the protections
afforded by, among other sections, Sections 362(b)(6), 546(e) and 555 of the Bankruptcy Code, or
(ii) a “swap agreement”, as such term is defined in Section 101(53B) of the Bankruptcy Code, in
which case each party is a “swap participant”, as such term is defined in Section 101(53C) of the
Bankruptcy Code, and that MSCO is entitled to the protections afforded by, among other sections,
Sections 362(b)(17), 546(g) and 560 of the Bankruptcy Code.

16. MSCO and Issuer hereby agree and acknowledge that MSCO has authorized the Issuer to disclose
this Transaction to any and all persons after the Issuer has publicly disclosed it, and there are
no express or implied

 

Page 17

agreements, arrangements or understandings to the contrary, and authorizes the Issuer to use any
information that the Issuer receives or has received with respect to this Transaction in any
manner.

17. Treatment in Bankruptcy; No Setoff; No Collateral.

(a) In the event the Issuer becomes the subject of proceedings (“Bankruptcy Proceedings”) under
the U.S. Bankruptcy Code or any other applicable bankruptcy or insolvency statute from time to time
in effect, any rights or claims of MSCO hereunder in respect of this transaction shall rank for all
purposes no higher than, but on a parity with, the rights or claims of holders of Shares, and MSCO
hereby agrees that its rights and claims hereunder shall be subordinated to those of all parties
with claims or rights against the Issuer (other than common stockholders) to the extent necessary
to assure such ranking. Without limiting the generality of the foregoing, after the commencement of
Bankruptcy Proceedings, the claims of MSCO hereunder shall for all purposes have rights equivalent
to the rights of a holder of a percentage of the Shares equal to the aggregate amount of such
claims (the “Claim Amount”) taken as a percentage of the sum of (i) the Claim Amount and (ii) the
aggregate fair market value of all outstanding Shares on the record date for distributions made to
the holders of such Shares in the related Bankruptcy Proceedings. Notwithstanding any right it
might otherwise have to assert a higher priority claim in any such Bankruptcy Proceedings, MSCO
shall be entitled to receive a distribution solely to the extent and only in the form that a holder
of such percentage of the Shares would be entitled to receive in such Bankruptcy Proceedings, and,
from and after the commencement of such Bankruptcy Proceedings, MSCO expressly waives (i) any other
rights or distributions to which it might otherwise be entitled in such Bankruptcy Proceedings in
respect of its rights and claims hereunder and (ii) any rights of setoff it might otherwise be
entitled to assert in respect of such rights and claims.

     (b) Notwithstanding any provision of this Agreement or any other agreement between the
parties to the contrary, neither the obligations of the Issuer nor the obligations of MSCO
hereunder are secured by any collateral, security interest, pledge or lien.

18. Share Cap. Notwithstanding any other provision of this Agreement to the contrary, in no event
shall the Issuer be required to deliver to MSCO a number of Shares that exceeds the Share Cap (as
specified in Schedule I), subject to reduction by the number of Shares delivered hereunder by the
Issuer on any prior date.

19. Account Details:

	 	 	 
	   Account for Payments to MSCO:

	 	To be provided separately
	 
	 	 
	   Account for Payments to Issuer:

	 	To be provided by Issuer

20. Governing law: The laws of the State of New York.

EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY
LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS CONFIRMATION OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

Page 18

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this
Confirmation and returning it to us by facsimile to the number provided on the attached facsimile
cover page.

Confirmed as of the date first written above:

	 	 	 	 	 	 	 	 	 	 	 
	PLEXUS CORP.	 	 	 	MORGAN STANLEY & CO. INCORPORATED
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:	 	 
	 

	 	Title:
	 	 	 	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]