Document:

Exhibit 10.6

    EXHIBIT
      10.6

     

    

     

    
      	 	
              April
                24, 2007

               

            
	
              To:

            	
              Charming
                Shoppes, Inc.

            
	 	
              450
                Winks Lane

            
	 	
              Bensalem,
                PA 19020

            
	 	
              Attn:
                Treasurer

            
	 	
              Telephone:
                215-633-4899

            
	 	
              Facsimile:
                215-638-6759

               

            
	
              From:

            	
              Wachovia
                Capital Markets, LLC

            
	 	
              201
                South College Street

            
	 	
              Charlotte,
                NC 28288

            
	 	
              Attn:
                Equity Derivatives

            
	 	
              Telephone:
                212-214-6100

            
	 	
              Facsimile:
                212-214-5913

               

            
	
              Re:

            	
              Issuer
                Warrant Transaction

            

    

    

    Ladies
      and Gentlemen:

    

    The
      purpose of this communication (this “Confirmation”)
      is to
      set forth the terms and conditions of the above-referenced transaction entered
      into on the Trade Date specified below (the “Transaction”)
      between Wachovia Bank, National Association, (“Wachovia”),
      acting through the agency of Wachovia Capital Markets, LLC (the “Agent”),
      and
Charming
      Shoppes, Inc.
      (“Issuer”).
      This
      communication constitutes a “Confirmation”
as
      referred to in the ISDA Master Agreement specified below. 

     

    1.  This
      Confirmation is subject to, and incorporates, the definitions and provisions
      of
      the 2000 ISDA Definitions (including the Annex thereto) (the “2000
      Definitions”)
      and
      the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions
      (the “Equity
      Definitions”,
      and
      together with the 2000 Definitions, the “Definitions”),
      in
      each case as published by the International Swaps and Derivatives Association,
      Inc. (“ISDA”).
      In
      the event of any inconsistency between the 2000 Definitions and the Equity
      Definitions, the Equity Definitions will govern. For purposes of the Equity
      Definitions, each reference herein to a Warrant shall be deemed to be a
      reference to a Call Option or an Option, as context requires.

     

    This
      Confirmation evidences a complete and binding agreement between Wachovia 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
      Wachovia and Issuer had executed an agreement in such form (without any Schedule
      but with the elections set forth in this Confirmation). For the avoidance of
      doubt, the Transaction shall be the only transaction under the
      Agreement.

     

    All
      provisions contained in, or incorporated by reference to, the Agreement will
      govern this Confirmation except as expressly modified herein. In the event
      of
      any inconsistency between this Confirmation and either the Definitions or the
      Agreement, this Confirmation shall govern. 

     

    2.  The
      Transaction is a Warrant Transaction, which shall be considered a Share Option
      Transaction for purposes of the Equity Definitions. The terms of the particular
      Transaction to which this Confirmation relates are as follows:

     

    
      	
              General
                Terms:

               

            	 
	
              Trade
                Date:

               

            	
              April
                24, 2007

               

            
	
              Effective
                Date:

               

            	
              April
                30, 2007, subject to Section 8(o) below

               

            
	
              Components:

               

            	
              The
                Transaction will be divided into individual Components, each with
                the
                terms set forth in this Confirmation, and, in particular, with the
                Number
                of Warrants and Expiration Date set forth in this Confirmation. The
                payments and deliveries to be made upon settlement of the Transaction
                will
                be determined separately for each Component as if each Component
                were a
                separate Transaction under the Agreement.

               

            
	
              Warrant
                Style:

               

            	
              European

               

            
	
              Warrant
                Type:

               

            	
              Call

               

            
	
              Seller:

               

            	
              Issuer

               

            
	
              Buyer:

               

            	
              Wachovia

               

            
	
              Shares:

               

            	
              The
                Common Stock of Issuer, par value USD 0.10 per share (Ticker Symbol:
                “CHRS”).

               

            
	
              Number
                of Warrants:

               

            	
              For
                each Component, as provided in Annex A to this Confirmation; provided
                that if the Initial Purchasers party to the Purchase Agreement (as
                defined
                herein) exercise their right to receive additional 1.125% Senior
                Convertible Notes due 2014, (the “Convertible
                Notes”)
                pursuant to the Initial Purchasers’ option to purchase additional
                Convertible Notes, then, at the discretion of Issuer, on the Additional
                Premium Payment Date, the Number of Warrants shall be automatically
                increased by the additional Warrants (the “Additional
                Warrants”)
                in proportion to such additional Convertible Notes in denominations
                of USD
                1,000 principal amount issued pursuant to such exercise (such Convertible
                Notes, the “Additional
                Convertible Notes”).
                

               

            
	
              Warrant
                Entitlement:

               

            	
              One
                Share per Warrant

               

            
	
              Strike
                Price:

               

            	
              USD 21.6070

               

            
	
              Premium:

               

            	
              USD 12,262,500.00;
                provided
                that
                if the Number of Warrants is increased pursuant to the proviso to
                the
                definition of “Number of Warrants” above, an additional Premium equal to
                the product of the number of Warrants by which the Number of Warrants
                is
                so increased and USD 2.8737
                shall be paid on the Additional Premium Payment Date.

               

            
	
              Premium
                Payment Date:

               

            	
              The
                Effective Date

               

            
	
              Additional
                Premium Payment Date:

               

            	
              The
                closing date for the purchase and sale of the Additional Convertible
                Notes.

               

            
	
              Exchange:

               

            	
              The
                NASDAQ
                Global Select Market

               

            
	
              Related
                Exchange:

               

            	
              All
                Exchanges

               

            
	
              Procedures
                for Exercise:

               

            	 
	
              Expiration
                Time:

               

            	
              Valuation
                Time

               

            
	
              Expiration
                Date:

               

            	
              As
                provided in Annex
                A
                to
                this Confirmation (or, if such date is not a Scheduled Trading Day,
                the
                next following Scheduled Trading Day that is not already an Expiration
                Date for another Component); provided
                that if that date is a Disrupted Day, the Expiration Date for such
                Component shall be the first succeeding Scheduled Trading Day that
                is not
                a Disrupted Day and is not or is not deemed to be an Expiration Date
                in
                respect of any other Component of the Transaction hereunder; and
                provided
                further
                that if the Expiration Date has not occurred pursuant to the preceding
                proviso as of the Final Disruption Date, the Final Disruption Date
                shall
                be the Expiration Date (irrespective of whether such date is an Expiration
                Date occurring on the Final Disruption Date in respect of any other
                Component for the Transaction) and, notwithstanding anything to the
                contrary in this Confirmation or the Definitions, the Relevant Price
                for
                the Expiration Date shall be the prevailing market value per Share
                determined by the Calculation Agent in a commercially reasonable
                manner.
                “Final
                Disruption Date”
                means December 31, 2014. Notwithstanding the foregoing and anything
                to the
                contrary in the Equity Definitions, if a Market Disruption Event
                occurs on
                any Expiration Date, the Calculation Agent may determine that such
                Expiration Date is a Disrupted Day only in part, in which case the
                Calculation Agent shall make adjustments to the number of Warrants
                for the
                relevant Component for which such day shall be the Expiration Date
                and
                shall designate the Scheduled Trading Day determined in the manner
                described in the immediately preceding sentence as the Expiration
                Date for
                the remaining Warrants for such Component. Section 6.6 of the Equity
                Definitions shall not apply to any Valuation Date occurring on an
                Expiration Date. 

               

            
	
              Market
                Disruption Event:

               

            	
              Section
                6.3(a) of the Equity Definitions is hereby amended by deleting the
                words
                “during the one hour period that ends at the relevant Valuation Time,
                Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation
                Time,
                as the case may be,” in clause (ii) thereof. 

               

            
	
              Automatic
                Exercise:

               

            	
              Applicable;
                and means that each Warrant not previously exercised under the Transaction
                will be deemed to be automatically exercised at the applicable Expiration
                Time on the Expiration Date unless Wachovia notifies Seller (by telephone
                or in writing) prior to the Expiration Time on the Expiration Date
                that it
                does not wish Automatic Exercise to occur, in which case Automatic
                Exercise will not apply.

               

            
	
              Issuer’s
                Telephone Number

            	 
	
              and
                Telex and/or Facsimile Number

            	 
	
              and
                Contact Details for purpose of

            	 
	
              Giving
                Notice:

               

            	
              To
                be provided by Issuer.

               

            
	
              Settlement
                Terms:

               

            	 
	
              In
                respect of any Component:

            	 
	 	 
	
              Settlement
                Currency:

               

            	
              USD
                

               

            
	
              Net
                Share Settlement:

               

            	
              On
                each Settlement Date, Issuer shall deliver to Wachovia a number of
                Shares
                equal to the Number of Shares to be Delivered for such Settlement
                Date to
                the account specified by Wachovia and cash in lieu of any fractional
                shares valued at the Relevant Price on the Valuation Date corresponding
                to
                such Settlement Date. 

               

            
	
              Number
                of Shares to be Delivered:

               

            	
              In
                respect of any Exercise Date, subject to the last sentence of Section
                9.5
                of the Equity Definitions, the product of (i) the number of Warrants
                exercised or deemed exercised on such Exercise Date, (ii) the Warrant
                Entitlement and (iii) (A) the excess of the VWAP Price on the Valuation
                Date occurring on such Exercise Date over the Strike Price divided
                by
                (B) such VWAP Price. 

               

            
	 	
              The
                Number of Shares to be Delivered shall be delivered by Issuer to
                Wachovia
                no later than 5:00 P.M. (local time in New York City) on the relevant
                Settlement Date.

               

            
	
              VWAP
                Price:

               

            	
              For
                any Valuation Date, the volume weighted average price per Share for
                such
                Valuation Date based on transactions executed during such Valuation
                Date,
                as reported on Bloomberg Page “CHRS.UQ <Equity> AQR” (or any
                successor thereto) or, in the event such price is not so reported
                on such
                Valuation Date for any reason, as reasonably determined by the Calculation
                Agent. 

               

            
	
              Other
                Applicable Provisions:

               

            	
              The
                provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that
                the
                Representation and Agreement contained in Section 9.11 of the Equity
                Definitions shall be modified by excluding any representations therein
                relating to restrictions, obligations, limitations or requirements
                under
                applicable securities laws as a result of the fact that Seller is
                the
                Issuer of the Shares) and 9.12 of the Equity Definitions will be
                applicable, except that all references in such provisions to
                “Physically-Settled” shall be read as references to “Net Share Settled”.
                “Net Share Settled” in relation to any Warrant means that Net Share
                Settlement is applicable to such Warrant.

               

            
	
              Adjustments:

               

            	 
	
              In
                respect of any Component:

            	 
	
               

              Method
                of Adjustment:

               

            	
               

              Calculation
                Agent Adjustment

               

            
	
              Extraordinary
                Dividend:

               

            	
              Any
                dividend or distribution (i) that has an ex-dividend date occurring
                on or
                after the Trade Date and on or prior to the Expiration Date and (ii)
                the
                amount or value of which exceeds the Ordinary Dividend Amount for
                such
                dividend or distribution, as determined by the Calculation Agent.
                

               

            
	
              Ordinary
                Dividend Amount:

               

            	
              USD
                0.00.

               

            
	
              Extraordinary
                Events:

               

            	 
	
              New
                Shares:

            	
              Section
                12.1(i) of the Equity Definitions is hereby amended by deleting the
                text
                in clause (i) in its entirety and replacing it with the phrase “publicly
                quoted, traded or listed 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)”.

            
	 	 
	
              Consequences
                of Merger Events:

               

            	 
	
              (a)
                Share-for-Share:

               

            	
              Modified
                Calculation Agent Adjustment

               

            
	
              (b)
                hare-for-Other:

               

            	
              Cancellation
                and Payment (Calculation Agent Determination)

               

            
	
              (c)
                Share-for-Combined:

               

            	
              Cancellation
                and Payment (Calculation Agent Determination)

               

            
	
              Tender
                Offer:

               

            	
              Applicable

               

            
	
              Consequences
                of Tender Offers:

               

            	 
	
              (a)
                Share-for-Share:

               

            	
              Modified
                Calculation Agent Adjustment

               

            
	
              (b)
                Share-for-Other:

               

            	
              Cancellation
                and Payment (Calculation Agent Determination) on that portion of
                the Other
                Consideration that consists of cash; Modified Calculation Agent Adjustment
                on the remainder of the Other Consideration.

               

            
	
              (c)
                Share-for-Combined:

               

            	
              Modified
                Calculation Agent Adjustment

               

            
	
              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 shall also constitute a Delisting if the Exchange
                is
                located in the United States and the Shares are not immediately re-listed,
                re-traded or re-quoted on any of the New York Stock Exchange, the
                American
                Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global
                Market (or their respective successors); if the Shares are immediately
                re-listed, re-traded or re-quoted on any such exchange or quotation
                system, such exchange or quotation system shall thereafter be deemed
                to be
                the Exchange.

               

            
	
              Additional
                Disruption Events: 

               

            	 
	
              (a)
                Change in Law:

               

            	
              Applicable

               

            
	
              (b)
                Failure to Deliver:

               

            	
              Not
                Applicable

               

            
	
              (c)
                Insolvency Filing:

               

            	
              Applicable

               

            
	
              (d)
                Hedging Disruption:

               

            	
              Applicable

               

            
	
              (e)
                Increased Cost of Hedging:

               

            	
              Applicable

               

            
	
              (f)
                Loss of Stock Borrow:

               

            	
              Applicable

               

            
	
              Maximum
                Stock Loan Rate:

               

            	
              100
                basis points

               

            
	
              (g)
                Increased Cost of Stock Borrow:

               

            	
              Applicable

               

            
	
              Initial
                Stock Loan Rate:

               

            	
              50
                basis points

               

            
	
              Hedging
                Party:

               

            	
              Wachovia
                for all applicable Additional Disruption Events

               

            
	
              Determining
                Party:

               

            	
              Wachovia
                for all applicable Extraordinary Events

               

            
	
              Non-Reliance:

               

            	
              Applicable

               

            
	
              Agreements
                and Acknowledgments 

               

            	 
	
              Regarding
                Hedging Activities:

               

            	
              Applicable

               

            
	
              Additional
                Acknowledgments:

               

            	
              Applicable

               

            
	
              3.
                Calculation Agent:

               

            	
              Wachovia

               

            
	
              4.
                Account Details:

               

            	 
	
              Wachovia
                Payment Instructions:

            	
              Wachovia
                Bank, National Association

            
	 	
              Charlotte,
                NC

            
	 	
              ABA:
                053-000-219

            
	 	
              A/C:
                04659360009768

            
	 	
              Attn:
                Equity Derivatives

               

            
	
              Issuer
                Payment Instructions:

               

            	
              To
                be provided by Issuer.

               

            

    

    5.
      Offices:

     

    The
      Office of Wachovia for the Transaction is: 

     

    Wachovia
      Bank, National Association

    375
      Park
      Avenue

    New
      York,
      NY 10152

     

    The
      Office of Issuer for the Transaction is: 450 Winks Lane, Bensalem, PA
      19020

     

    6.
      Notices:
      For
      purposes of this Confirmation:

     

    (a) Address
      for notices or communications to Issuer:

     

    
      	
              To:

            	
              Charming
                Shoppes, Inc.

            
	 	
              450
                Winks Lane

            
	 	
              Bensalem,
                PA 19020

            
	
              Attn:
                

            	
              Treasurer

            
	
              Telephone:
                

            	
              215-633-4899

            
	
              Facsimile:
                

            	
              215-638-6759

            

    

    

    (b) Address
      for notices or communications to Wachovia:

     

    
      	
              To:

            	
              Wachovia
                Bank, National Association

            
	 	
              375
                Park Avenue

            
	 	
              New
                York, NY 10152 

            
	
              Attn:

            	
              Head
                of Documentation

            
	
              Telephone:

            	
              212-214-6100

            
	
              Facsimile:

            	
              212-214-5913

            

    

    

     

    7. Representations,
      Warranties and Agreements:

     

    (a)  In
      addition to the representations and warranties in the Agreement and those
      contained elsewhere herein, Issuer represents and warrants to and for the
      benefit of, and agrees with, Wachovia as follows:

     

    (i) On
      the
      Trade Date, (A) none of Issuer and its officers and directors is aware of any
      material nonpublic information regarding Issuer or the Shares and (B) all
      reports and other documents filed by Issuer with the Securities and Exchange
      Commission pursuant to the Exchange Act when considered as a whole (with the
      more recent such reports and documents deemed to amend inconsistent statements
      contained in any earlier such reports and documents), do not contain any untrue
      statement of a material fact or any omission of a material fact required to
      be
      stated therein or necessary to make the statements therein, in the light of
      the
      circumstances in which they were made, not misleading.

     

    (ii) Without
      limiting the generality of Section 13.1 of the Equity Definitions, Issuer
      acknowledges that Wachovia is not making any representations or warranties
      with
      respect to the treatment of the Transaction under FASB Statements 128, 133
      or
      149 (each as amended) or 150, EITF Issue No. 00-19, 01-06 or 03-06 (or any
      successor issue statements) or under FASB’s Liabilities & Equity
      Project.

     

    (iii) Prior
      to
      the Trade Date, Issuer shall deliver to Wachovia a resolution of Issuer’s board
      of directors authorizing the Transaction and such other certificate or
      certificates as Wachovia shall reasonably request.

     

    (iv) Issuer
      is
      not entering into this Confirmation to create actual or apparent trading
      activity in the Shares (or any security convertible into or exchangeable for
      Shares) or to raise or depress or otherwise manipulate the price of the Shares
      (or any security convertible into or exchangeable for Shares) or otherwise
      in
      violation of the Exchange Act. 

     

    (v) On
      any
      Expiration Date, Issuer shall not, and shall cause its affiliates and affiliated
      purchasers (each as defined in Rule 10b-18) not to, directly or indirectly
      (including, without limitation, by means of a cash-settled or other 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 for Shares on any Expiration Date.

     

    (vi) Issuer
      is
      not, and after giving effect to the transactions contemplated hereby will not
      be, an “investment company” as such term is defined in the Investment Company
      Act of 1940, as amended.

     

    (vii) On
      the
      Trade Date (A) the assets of Issuer at their fair valuation exceed the
      liabilities of Issuer, including contingent liabilities, (B) the capital of
      Issuer is adequate to conduct the business of Issuer and (C) Issuer has the
      ability to pay its debts and obligations as such debts mature and does not
      intend to, or does not believe that it will, incur debt beyond its ability
      to
      pay as such debts mature.

     

    (viii) Issuer
      shall not take any action to decrease the number of Available Shares below
      the
      Capped Number (each as defined below).

     

    (ix) The
      representations and warranties of Issuer set forth in Section 3 of the Agreement
      and Section 1 of the Purchase Agreement (the “Purchase
      Agreement”)
      dated
      as of April 30, 2007 between Issuer and Banc of America Securities LLC and
      J.P.
      Morgan Securities Inc. as representatives of the Initial Purchasers party
      thereto are true and correct and are hereby deemed to be repeated to Wachovia
      as
      if set forth herein.

     

    (x) Issuer
      understands no obligations of Wachovia to it hereunder will be entitled to
      the
      benefit of deposit insurance and that such obligations will not be guaranteed
      by
      any affiliate of Wachovia or any governmental agency.

     

    (xi) (A)
      On
      the Trade Date, 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 such term is defined in Regulation M under the Exchange
      Act (“Regulation
      M”)
      and
      (B) Issuer 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.

     

    (xii)
       The
      Shares of the Issuer initially issuable upon exercise of the Warrant by the
      net
      share settlement method (the “Warrant
      Shares”)
      have
      been reserved for issuance by all required corporate action of the Issuer.
      The
      Warrant Shares have been duly authorized and, when delivered against payment
      therefor (which may include Net Share Settlement in lieu of cash) and otherwise
      as contemplated by the terms of the Warrant following the exercise of the
      Warrant in accordance with the terms and conditions of the Warrant, will be
      validly issued, fully-paid and non-assessable, and the issuance of the Warrant
      Shares will not be subject to any preemptive or similar rights.

     

    (b) Each
      of
      Wachovia and Issuer agrees and represents that it is an “eligible contract
      participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as
      amended.

     

    (c) Each
      of
      Wachovia and Issuer acknowledges that the offer and sale of the Transaction
      to
      it is intended to be exempt from registration under the Securities Act of 1933,
      as amended (the “Securities
      Act”),
      by
      virtue of Section 4(2) thereof. Accordingly, Wachovia represents and warrants
      to
      Issuer that (i) it has the financial ability to bear the economic risk of its
      investment in the Transaction and is able to bear a total loss of its
      investment, (ii) it is an “accredited investor” as that term is defined in
      Regulation D as promulgated under the Securities Act, (iii) it is entering
      into
      the Transaction for its own account without a view to the distribution or resale
      thereof and (iv) the assignment, transfer or other disposition of the
      Transaction has not been and will not be registered under the Securities Act
      and
      is restricted under this Confirmation, the Securities Act and state securities
      laws.

     

    (d) Each
      of
      Wachovia and Issuer agrees and acknowledges that Wachovia is a “financial
      institution,” “swap participant” and “financial participant” within the meaning
      of Sections 101(22), 101(53C) and 101(22A) of Title 11 of the United States
      Code
      (the “Bankruptcy
      Code”).
      The
      parties hereto further agree and acknowledge (A) that this Confirmation is
      (i) a
“securities contract,” as such term is defined in Section 741(7) of the
      Bankruptcy Code, with respect to which each payment and delivery hereunder
      is a
“settlement payment,” as such term is defined in Section 741(8) of the
      Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section
      101(53B) of the Bankruptcy Code, with respect to which each payment and delivery
      hereunder is a “transfer,” as such term is defined in Section 101(54) of the
      Bankruptcy Code, and (B) that Wachovia is entitled to the protections afforded
      by, among other sections, Section 362(b)(6), 362(b)(17), 546(e), 546(g), 555
      and
      560 of the Bankruptcy Code.

     

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

     

    8.
      Other
      Provisions:

     

    (a) Alternative
      Calculations and Payment on Early Termination and on Certain Extraordinary
      Events.
      If,
      subject to Section 8(m) below, Issuer shall owe Wachovia any amount pursuant
      to
      Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in
      the
      event of an Insolvency, a Nationalization, a Tender Offer 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 pursuant to Section 6(d)(ii) of the Agreement
      (except in the event of an Event of Default in which Issuer is the Defaulting
      Party or a Termination Event in which Issuer is the Affected Party, that
      resulted from an event or events within Issuer’s control) (a “Payment
      Obligation”),
      Issuer shall have the right, in its sole discretion, to satisfy any such Payment
      Obligation by the Share Termination Alternative (as defined below) by giving
      irrevocable telephonic notice to Wachovia, confirmed in writing within one
      Scheduled Trading Day, between the hours of 9:00 A.M. and 4:00 P.M. New York
      City time on the Merger Date, Tender Offer Date, Announcement Date or Early
      Termination Date, as applicable (“Notice
      of Share Termination”);
      provided
      that
      if
      Issuer does not validly elect to satisfy its Payment Obligation by the Share
      Termination Alternative, Wachovia shall have the right, in its sole discretion
      to require Issuer to satisfy its Payment Obligation by the Share Termination
      Alternative, notwithstanding Issuer’s election to the contrary. Upon such Notice
      of Share Termination, the following provisions shall apply on the Scheduled
      Trading Day immediately following the Merger Date, the Tender Offer Date,
      Announcement Date or Early Termination Date, as applicable:

     

    
      	
              Share
                Termination Alternative: 

               

            	
              Applicable
                and means that Issuer shall deliver to Wachovia the Share Termination
                Delivery Property on the date on which the Payment Obligation would
                otherwise be due pursuant to Section 12.7 or 12.9 of the Equity
                Definitions or Section 6(d)(ii) of the Agreement, as applicable (the
                “Share
                Termination Payment Date”),
                in satisfaction of the Payment Obligation. 

               

            
	
              Share
                Termination Delivery 

            	 
	
              Property:
                

               

            	
              A
                number of Share Termination Delivery Units, as calculated by the
                Calculation Agent, equal to the Payment Obligation divided by the
                Share
                Termination Unit Price. The Calculation Agent shall adjust the Share
                Termination Delivery Property by replacing any fractional portion
                of a
                security therein with an amount of cash equal to the value of such
                fractional security based on the values used to calculate the Share
                Termination Unit Price. 

               

            
	
              Share
                Termination Unit Price: 

               

            	
              The
                value of property contained in one Share Termination Delivery Unit
                on the
                date such Share Termination Delivery Units are to be delivered as
                Share
                Termination Delivery Property, as determined by the Calculation Agent
                in
                its discretion by commercially reasonable means and notified by the
                Calculation Agent to Issuer at the time of notification of the Payment
                Obligation. 

               

            
	
              Share
                Termination Delivery Unit: 

               

            	
              In
                the case of a Termination Event, Event of Default or Delisting, one
                Share
                or, in the case of an Insolvency, Nationalization, Merger Event or
                Tender
                Offer, a unit consisting of the number or amount of each type of
                property
                received by a holder of one Share (without consideration of any
                requirement to pay cash or other consideration in lieu of fractional
                amounts of any securities) in such Insolvency, Nationalization, Merger
                Event or Tender Offer. If such Insolvency, Nationalization, Merger
                Event
                or Tender Offer involves a choice of consideration to be received
                by
                holders, such holder shall be deemed to have elected to receive the
                maximum possible amount of cash.

               

            
	
              Failure
                to Deliver: 

               

            	
              Applicable

               

            
	
              Other
                applicable provisions: 

               

            	
              If
                Share Termination Alternative is applicable, the provisions of Sections
                9.8, 9.9, 9.10, 9.11 (except that the Representation and Agreement
                contained in Section 9.11 of the Equity Definitions shall be modified
                by
                excluding any representations therein relating to restrictions,
                obligations, limitations or requirements under applicable securities
                laws
                as a result of the fact that Seller is the Issuer of the Shares)
                and 9.12
                of the Equity Definitions will be applicable, except that all references
                in such provisions to “Physically-Settled” shall be read as references to
                “settled by Share Termination Alternative” and all references to “Shares”
                shall be read as references to “Share Termination Delivery Units”.
                

               

            

    

    (b) Registration/Private
      Placement Procedures.
      (i) If,
      in the reasonable judgment of Wachovia, for any reason, any Shares or any
      securities of Issuer or its affiliates comprising any Share Termination Delivery
      Units deliverable to Wachovia hereunder (any such Shares or securities,
“Delivered
      Securities”)
      would
      not be immediately freely transferable by Wachovia under Rule 144(k) under
      the
      Securities Act of 1933, as amended (the “Securities
      Act”),
      then
      the provisions set forth in this Section 8(b) shall apply. At the election
      of
      Issuer by notice to Wachovia within one Exchange Business Day after the relevant
      delivery obligation arises, but in any event at least one Exchange Business
      Day
      prior to the date on which such delivery obligation is due, either (A) all
      Delivered Securities delivered by Issuer to Wachovia shall be, at the time
      of
      such delivery, covered by an effective registration statement of Issuer for
      immediate resale by Wachovia (such registration statement and the corresponding
      prospectus (the “Prospectus”)
      (including, without limitation, any sections describing the plan of
      distribution) in form and content commercially reasonably satisfactory to
      Wachovia) or (B) Issuer shall deliver additional Delivered Securities so that
      the value of such Delivered Securities, as determined by the Calculation Agent
      to reflect an appropriate liquidity discount, equals the value of the number
      of
      Delivered Securities that would otherwise be deliverable if such Delivered
      Securities were freely tradeable (without prospectus delivery) upon receipt
      by
      Wachovia (such value, the “Freely
      Tradeable Value”);
      provided
      that
      Issuer may not make the election described in this clause (B) if, on the date
      of
      its election, it has taken, or caused to be taken, any action that would make
      unavailable either the exemption pursuant to Section 4(2) of the Securities
      Act
      for the delivery by Issuer to Wachovia (or any affiliate designated by Wachovia)
      of the Delivered Securities or the exemption pursuant to Section 4(1) or Section
      4(3) of the Securities Act for resales of the Delivered Securities by Wachovia
      (or any such affiliate of Wachovia). (For the avoidance of doubt, as used in
      this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
      securities, as the context shall require.)

     

    (ii) If
      Issuer
      makes the election described in clause (b)(i)(A) above:

     

    (A) Wachovia
      (or an Affiliate of Wachovia designated by Wachovia) shall be afforded a
      reasonable opportunity to conduct a due diligence investigation with respect
      to
      Issuer that is customary in scope for underwritten offerings of equity
      securities and that yields results that are commercially reasonably satisfactory
      to Wachovia or such Affiliate, as the case may be, in its discretion;
      and

     

    (B) Wachovia
      (or an Affiliate of Wachovia designated by Wachovia) and Issuer shall enter
      into
      an agreement (a “Registration
      Agreement”)
      on
      commercially reasonable terms in connection with the public resale of such
      Delivered Securities by Wachovia or such Affiliate substantially similar to
      underwriting agreements customary for underwritten offerings of equity
      securities, in form and substance commercially reasonably satisfactory to
      Wachovia or such Affiliate and Issuer, which Registration Agreement shall
      include, without limitation, provisions substantially similar to those contained
      in such underwriting agreements relating to the indemnification of, and
      contribution in connection with the liability of, Wachovia and its Affiliates
      and Issuer, shall provide for the payment by Issuer of all expenses in
      connection with such resale, including all registration costs and all fees
      and
      expenses of counsel for Wachovia, and shall provide for the delivery of
      accountants’ “comfort letters” to Wachovia or such Affiliate with respect to the
      financial statements and certain financial information contained in or
      incorporated by reference into the Prospectus.

     

    (iii) If
      Issuer
      makes the election described in clause (b)(i)(B) above:

     

    (A) all
      Delivered Securities shall be delivered to Wachovia (or any Affiliate of
      Wachovia designated by Wachovia) pursuant to the exemption from the registration
      requirements of the Securities Act provided by Section 4(2)
      thereof;

     

    (B) Wachovia
      (or an Affiliate of Wachovia designated by Wachovia) and any potential
      institutional purchaser of any such Delivered Securities from Wachovia or such
      Affiliate identified by Wachovia shall be afforded a commercially reasonable
      opportunity to conduct a due diligence investigation in compliance with
      applicable law 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);

     

    (C) Wachovia
      (or an Affiliate of Wachovia designated by Wachovia) and Issuer shall enter
      into
      an agreement (a “Private
      Placement Agreement”)
      on
      commercially reasonable terms in connection with the private placement of such
      Delivered Securities by Issuer to Wachovia or such Affiliate and the private
      resale of such shares by Wachovia or such Affiliate, substantially similar
      to
      private placement purchase agreements customary for private placements of equity
      securities, in form and substance commercially reasonably satisfactory to
      Wachovia and 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, Wachovia and its Affiliates
      and Issuer, shall provide for the payment by Issuer of all expenses in
      connection with such resale, including all fees and expenses of counsel for
      Wachovia, shall contain representations, warranties and agreements of Issuer
      reasonably necessary or advisable to establish and maintain the availability
      of
      an exemption from the registration requirements of the Securities Act for such
      resales, and shall use best efforts to provide for the delivery of accountants’
“comfort letters” to Wachovia or such Affiliate with respect to the financial
      statements and certain financial information contained in or incorporated by
      reference into the offering memorandum prepared for the resale of such Shares;
      and

     

    (D) Issuer
      agrees that any Delivered Securities so delivered to Wachovia, (i) may be
      transferred by and among Wachovia and its Affiliates, and Issuer shall effect
      such transfer without any further action by Wachovia and (ii) after the minimum
      “holding period” within the meaning of Rule 144(d) under the Securities Act has
      elapsed with respect to such Delivered Securities, Issuer shall promptly remove,
      or cause the transfer agent for such Shares or securities to remove, any legends
      referring to any such restrictions or requirements from such Delivered
      Securities upon delivery by Wachovia (or such Affiliate of Wachovia) to Issuer
      or such transfer agent of seller’s and broker’s representation letters
      customarily delivered by Wachovia in connection with resales of restricted
      securities pursuant to Rule 144 under the Securities Act, without any further
      requirement for the delivery of any certificate, consent, agreement, opinion
      of
      counsel, notice or any other document, any transfer tax stamps or payment of
      any
      other amount or any other action by Wachovia (or such affiliate of
      Wachovia).

     

    (c) Make-whole.
      If
      Issuer makes the election described in clause (b)(i)(B) of paragraph (b) of
      this
      Section 8, then Wachovia or its affiliate may sell such Shares or Share
      Termination Delivery Units, as the case may be, during a period (the
“Resale
      Period”)
      commencing on the Exchange Business Day following delivery of such Shares or
      Share Termination Delivery Units, as the case may be, and ending on the Exchange
      Business Day on which Wachovia completes the sale of all such Shares or Share
      Termination Delivery Units, as the case may be, or a sufficient number of Shares
      or Share Termination Delivery Units, as the case may be, so that the realized
      net proceeds of such sales exceed the Freely Tradeable Value (such amount of
      the
      Freely Tradeable Value, the “Required
      Proceeds”).
      If
      any of such delivered Shares or Share Termination Delivery Units remain after
      such realized net proceeds exceed the Required Proceeds, Wachovia shall return
      such remaining Shares or Share Termination Delivery Units to Issuer. If the
      Required Proceeds exceed the realized net proceeds from such resale, Issuer
      shall transfer to Wachovia by the open of the regular trading session on the
      Exchange on the Exchange Trading Day immediately following the last day of
      the
      Resale Period the amount of such excess (the “Additional
      Amount”)
      in
      cash or in a number of additional Shares (“Make-whole
      Shares”)
      in an
      amount that, based on the Relevant Price on the last day of the Resale Period
      (as if such day was the “Valuation Date” for purposes of computing such Relevant
      Price), has a dollar value equal to the Additional Amount. The Resale Period
      shall continue to enable the sale of the Make-whole Shares in the manner
      contemplated by this Section 8(c). This provision shall be applied successively
      until the Additional Amount is equal to zero, subject to Section 8(e).

     

    (d)  Beneficial
      Ownership.
      Notwithstanding anything to the contrary in the Agreement or this Confirmation,
      in no event shall Wachovia be entitled to receive, or shall be deemed to
      receive, any Shares if, upon such receipt of such Shares, the “beneficial
      ownership” (within the meaning of Section 13 of the Exchange Act and the rules
      promulgated thereunder) of Shares by Wachovia or any entity that directly or
      indirectly controls Wachovia (collectively, “Buyer
      Group”)
      would
      be equal to or greater than 9% or more of the outstanding Shares. If any
      delivery owed to Wachovia hereunder is not made, in whole or in part, as a
      result of this provision, Issuer’s obligation to make such delivery shall not be
      extinguished and Issuer shall make such delivery as promptly as practicable
      after, but in no event later than one Exchange Business Day after, Wachovia
      gives notice to Issuer that such delivery would not result in Buyer Group
      directly or indirectly so beneficially owning in excess of 9% of the outstanding
      Shares.

     

    (e)  Limitations
      on Settlement by Issuer.
      Notwithstanding anything herein or in the Agreement to the contrary, in no
      event
      shall Issuer be required to deliver Shares in connection with the Transaction
      in
      excess of 12,800,000 Shares
      (the “Capped
      Number”),
      as
      such number may be adjusted for Share splits or Share combinations. Issuer
      represents and warrants (which shall be deemed to be repeated on each day that
      the Transaction is outstanding) that the Capped Number is equal to or less
      than
      the number of authorized but unissued Shares of the Issuer that are not reserved
      for future issuance in connection with transactions in the Shares (other than
      the Transaction) on the date of the determination of the Capped Number (such
      Shares, the “Available
      Shares”).
      In
      the event Issuer shall not have delivered the full number of Shares otherwise
      deliverable as a result of this Section 8(e) (the resulting deficit, the
“Deficit
      Shares”),
      Issuer shall be continually obligated to deliver, from time to time until the
      full number of Deficit Shares have been delivered pursuant to this paragraph,
      Shares when, and to the extent, that (i) Shares are repurchased, acquired or
      otherwise received by Issuer or any of its subsidiaries after the Trade Date
      (whether or not in exchange for cash, fair value or any other consideration),
      (ii) authorized and unissued Shares reserved for issuance in respect of other
      transactions prior to such date which prior to the relevant date become no
      longer so reserved and (iii) Issuer additionally authorizes and unissued Shares
      that are not reserved for other transactions. Issuer shall immediately notify
      Wachovia of the occurrence of any of the foregoing events (including the number
      of Shares subject to clause (i), (ii) or (iii) and the corresponding number
      of
      Shares to be delivered) and promptly deliver such Shares
      thereafter.

     

    (f)  Right
      to Extend.
      Wachovia may postpone any Exercise Date or any other date of valuation or
      delivery with respect to some or all of the relevant Warrants (in which event
      the Calculation Agent shall make appropriate adjustments to the Number of Shares
      to be Delivered with respect to one or more Components), if Wachovia determines,
      in its reasonable discretion, that such extension is reasonably necessary or
      appropriate to preserve Wachovia’s hedging or hedge unwind activity hereunder in
      light of existing liquidity conditions or to enable Wachovia to effect purchases
      of Shares in connection with its hedging, hedge unwind or settlement activity
      hereunder in a manner that would, if Wachovia 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 Wachovia.

     

    (g)  Equity
      Rights.
      Wachovia acknowledges and agrees that this Confirmation is not intended to
      convey to it rights with respect to the Transaction that are senior to the
      claims of common stockholders in the event of Issuer’s bankruptcy. For the
      avoidance of doubt, the parties agree that the preceding sentence shall not
      apply at any time other than during Issuer’s bankruptcy to any claim arising as
      a result of a breach by Issuer of any of its obligations under this Confirmation
      or the Agreement. For the avoidance of doubt, the parties acknowledge that
      this
      Confirmation is not secured by any collateral that would otherwise secure the
      obligations of Issuer herein under or pursuant to any other
      agreement.

     

    (h)  Amendments
      to Equity Definitions and the Agreement.
      The
      following amendments shall be made to the Equity Definitions and to the
      Agreement:

     

    (i) Section
      11.2(a) of the Equity Definitions is hereby amended by deleting the words
“diluting or concentrative” and replacing them with the words
“material”.

     

    (ii)
       The
      first
      sentence of Section 11.2(c) of the Equity Definitions, prior to clause (A)
      thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent
      Adjustment” is specified as the Method of Adjustment in the related Confirmation
      of a Share Option Transaction, then following the announcement or occurrence
      of
      any Potential Adjustment Event, the Calculation Agent will determine whether
      such Potential Adjustment Event has a material effect on the theoretical value
      of the relevant Shares or options on the Shares and, if so, will (i) make
      appropriate adjustment(s), if any, to any one or more of:’ and, the portion of
      such sentence immediately preceding clause (ii) thereof is hereby amended by
      deleting the words “diluting or concentrative” and the words “(provided that no
      adjustments will be made to account solely for changes in volatility, expected
      dividends, stock loan rate or liquidity relative to the relevant Shares)” and
      replacing such latter phrase with the words “(and, for the avoidance of doubt,
      adjustments may be made to account solely for changes in volatility, expected
      dividends, stock loan rate or liquidity relative to the relevant Shares)”;

     

    (iii)
       Section
      11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words
      “diluting or concentrative” and replacing them with “material”; and adding the
      phrase “or Warrants” at the end of the sentence.

     

    (iv)
       Section
      12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from
      the
      fourth line thereof the word “or” after the word “official” and inserting a
      comma therefor, and (2) deleting the semi-colon at the end of subsection (B)
      thereof and inserting the following words therefor “or (C) at Wachovia’s option,
      the occurrence of any of the events specified in Section 5(a)(vii) (1) through
      (9) of the ISDA Master Agreement with respect to that Issuer.”

     

    (v)
       Section
      12.9(b)(iv) of the Equity Definitions is hereby amended by:

     

    (A) deleting
      (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection
      (A) and (3) the phrase “in each case” in subsection (B); and

    

    (B) deleting
      the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares in
      the amount of the Hedging Shares or” in the penultimate sentence.

    

    (vi)Section
      12.9(b)(v) of the Equity Definitions is hereby amended by:

    

    (A) adding
      the word “or” immediately before subsection “(B)” and deleting the comma at the
      end of subsection (A); and

    

    (B) (1)
      deleting subsection (C) in its entirety, (2) deleting the word “or” immediately
      preceding subsection (C) and (3) deleting the final sentence in its entirety
      and
      replacing it with the sentence “The Hedging Party will determine the
      Cancellation Amount payable by one party to the other.”

    

    (i) Repurchase
      Notices.
      Issuer
      shall, on any day on which Issuer effects any repurchase of Shares, promptly
      give Wachovia a written
      notice of such repurchase (a “Repurchase
      Notice”)
      on
      such day if, following such repurchase, the Notice Percentage as determined
      on
      such day is (i) greater than 6% and (ii) greater by 0.5% than the Notice
      Percentage included in the immediately preceding Repurchase Notice (or, in
      the
      case of the first such Repurchase Notice, greater than the Notice Percentage
      as
      of the date hereof). The “Notice
      Percentage”
as
      of
      any day is the fraction, expressed as a percentage, the numerator of which
      is
      the product of the Number of Warrants and the Warrant Entitlement and the
      denominator of which is the number of Shares outstanding on such day. In the
      event that Issuer fails to provide Wachovia with a Repurchase Notice on the
      day
      and in the manner specified in this Section 8(i) then Issuer agrees to indemnify
      and hold harmless Wachovia, its affiliates and their respective directors,
      officers, employees, agents and controlling persons (Wachovia and each such
      person being an “Indemnified
      Party”)
      from
      and against any and all losses, claims, damages and liabilities (or actions
      in
      respect thereof), joint or several, to which such Indemnified Party may become
      subject under applicable securities laws, including without limitation, Section
      16 of the Exchange Act, relating to or arising out of such failure. If for
      any
      reason the foregoing indemnification is unavailable to any Indemnified Party
      or
      insufficient to hold harmless any Indemnified Party, then Issuer shall
      contribute, to the maximum extent permitted by law, to the amount paid or
      payable by the Indemnified Party as a result of such loss, claim, damage or
      liability. In addition, Issuer will reimburse any Indemnified Party for all
      expenses (including reasonable counsel fees and expenses) as they are incurred
      (after notice to Issuer) in connection with the investigation of, preparation
      for or defense or settlement of any pending or threatened claim or any action,
      suit or proceeding arising therefrom, whether or not such Indemnified Party
      is a
      party thereto and whether or not such claim, action, suit or proceeding is
      initiated or brought by or on behalf of Issuer. This indemnity shall survive
      the
      completion of the Transaction contemplated by this Confirmation and any
      assignment and delegation of the Transaction made pursuant to this Confirmation
      or the Agreement shall inure to the benefit of any permitted assignee of
      Wachovia.

    

    (j) Transfer
      and Assignment.
      Wachovia may transfer or assign its rights and obligations hereunder and under
      the Agreement, in whole or in part, at any time to any person or entity
      whatsoever without the consent of Issuer. If at any time at which the Equity
      Percentage exceeds 8%, Wachovia, in its discretion, is unable to effect such
      a
      transfer or assignment after its commercially reasonable efforts on pricing
      terms reasonably acceptable to Wachovia such that the Equity Percentage is
      reduced to 8% or less, Wachovia may designate any Scheduled Trading Day as
      an
      Early Termination Date with respect to a portion (the “Terminated
      Portion”)
      of the
      Transaction, such that the Equity Percentage following such partial termination
      will be equal to or less than 8%. In the event that Wachovia so designates
      an
      Early Termination Date with respect to a portion of the Transaction, a payment
      or delivery shall be made pursuant to Section 6 of the Agreement and Section
      8(b) of this Confirmation as if (i) an Early Termination Date had been
      designated in respect of a Transaction having terms identical to the Terminated
      Portion of the Transaction, (ii) Issuer shall be the sole Affected Party with
      respect to such partial termination and (iii) such portion of the Transaction
      shall be the only Terminated Transaction. The “Equity
      Percentage”
as
      of
      any day is the fraction, expressed as a percentage, (A) the numerator of which
      is the sum of (x) the number of Shares that Wachovia or any of its affiliates
      beneficially own (within the meaning of Section 13 of the Exchange Act) on
      such
      day, other than any Shares so owned as a hedge of the Transaction, and (y)
      the
      product of the Number of Warrants and the Warrant Entitlement and (B) the
      denominator of which is the number of Shares outstanding on such
      day.

     

    (k)  Disclosure.
      Effective from the date of commencement of discussions concerning the
      Transaction, Issuer and each of its employees, representatives, or other agents
      may disclose to any and all persons, without limitation of any kind, the tax
      treatment and tax structure of the Transaction and all materials of any kind
      (including opinions or other tax analyses) that are provided to Issuer relating
      to such tax treatment and tax structure.

     

    (l)  Designation
      by Wachovia.
      Notwithstanding any other provision in this Confirmation to the contrary
      requiring or allowing Wachovia to purchase, sell, receive or deliver any Shares
      or other securities to or from Issuer, Wachovia may designate any of its
      affiliates to purchase, sell, receive or deliver such shares or other securities
      and otherwise to perform Wachovia obligations in respect of the Transaction
      and
      any such designee may assume such obligations. Wachovia shall be discharged
      of
      its obligations to Issuer to the extent of any such performance.

     

    (m)  Netting
      and Set-off.
      

     

    (i) If
      on any
      date cash would otherwise be payable or Shares or other property would otherwise
      be deliverable hereunder or pursuant to the Agreement or pursuant to any other
      agreement between the parties by Issuer to Wachovia and cash would otherwise
      be
      payable or Shares or other property would otherwise be deliverable hereunder
      or
      pursuant to the Agreement or pursuant to any other agreement between the parties
      by Wachovia to Issuer and the type of property required to be paid or delivered
      by each such party on such date is the same, then, on such date, each such
      party’s obligation to make such payment or delivery will be automatically
      satisfied and discharged and, if the aggregate amount that would otherwise
      have
      been payable or deliverable by one such party exceeds the aggregate amount
      that
      would otherwise have been payable or deliverable by the other such party,
      replaced by an obligation of the party by whom the larger aggregate amount
      would
      have been payable or deliverable to pay or deliver to the other party the excess
      of the larger aggregate amount over the smaller aggregate amount.

     

    (ii) In
      addition to and without limiting any rights of set-off that a party hereto
      may
      have as a matter of law, pursuant to contract or otherwise, upon the occurrence
      of an Early Termination Date, Wachovia shall have the right to terminate,
      liquidate and otherwise close out the Transaction and to set off any obligation
      or right that Wachovia or any affiliate of Wachovia may have to or against
      Issuer hereunder or under the Agreement against any right or obligation Wachovia
      or any of its affiliates may have against or to Issuer, including without
      limitation any right to receive a payment or delivery pursuant to any provision
      of the Agreement or hereunder. In the case of a set-off of any obligation to
      release, deliver or pay assets against any right to receive assets of the same
      type, such obligation and right shall be set off in kind. In the case of a
      set-off of any obligation to release, deliver or pay assets against any right
      to
      receive assets of any other type, the value of each of such obligation and
      such
      right shall be determined by the Calculation Agent and the result of such
      set-off shall be that the net obligor shall pay or deliver to the other party
      an
      amount of cash or assets, at the net obligor’s option, with a value (determined,
      in the case of a delivery of assets, by the Calculation Agent) equal to that
      of
      the net obligation. In determining the value of any obligation to release or
      deliver Shares or any right to receive Shares, the value at any time of such
      obligation or right shall be determined by reference to the market value of
      the
      Shares at such time, as determined by the Calculation Agent. If an obligation
      or
      right is unascertained at the time of any such set-off, the Calculation Agent
      may in good faith estimate the amount or value of such obligation or right,
      in
      which case set-off will be effected in respect of that estimate, and the
      relevant party shall account to the other party at the time such obligation
      or
      right is ascertained.

     

    (iii) Notwithstanding
      any provision of the Agreement (including without limitation Section 6(f)
      thereof) and this Confirmation (including without limitation this Section 8(m))
      or any other agreement between the parties to the contrary, (A) Issuer shall
      not
      net or set off its obligations under the Transaction against its rights against
      Wachovia under any other transaction or instrument; (B) Wachovia may net and
      set
      off any rights of Wachovia against Issuer arising under the Transaction only
      against obligations of Wachovia to Issuer arising under any transaction or
      instrument if such transaction or instrument does not convey rights to Wachovia
      senior to the claims of common stockholders in the event of Issuer’s bankruptcy;
      and (C) in the event of Issuer’s bankruptcy, Wachovia waives any and all rights
      it may have to set-off in respect of the Transaction, whether arising under
      agreement, applicable law or otherwise. Wachovia will give notice to Issuer
      of
      any netting or set off effected under this provision.

     

    (n)  Additional
      Termination Event.
      Notwithstanding anything to the contrary in this Confirmation, upon the
      occurrence of one of the following events, with respect to this Transaction,
      (1)
      Wachovia shall have the right to designate such event an Additional Termination
      Event and designate an Early Termination Date pursuant to Section 6(b) of the
      Agreement, and (2) Issuer shall be deemed the sole Affected Party and the
      Transaction shall be deemed the sole Affected Transaction:

     

    (i) Issuer
      sells all or substantially all of its assets in a transaction pursuant to which
      the Shares are converted into cash, securities or other property.

     

    (ii) There
      is
      a default by Issuer or any subsidiary in the payment of the principal or
      interest on any mortgage, agreement or other instrument under which there may
      be
      outstanding, or by which there may be secured or evidenced any indebtedness
      for
      money borrowed in excess of $40.0 million in the aggregate of Issuer and/or
      any
      subsidiary, whether such indebtedness now exists or shall hereafter be created
      resulting in such indebtedness becoming or being declared due and payable,
      and
      such acceleration shall not have been rescinded or annulled within 10 days
      after
      written notice of such acceleration has been received by Issuer or such
      subsidiary.

     

    (iii) Any
      “person” or “group” within the meaning of Section 13(d) of the Exchange Act
      other than the Issuer, any of its subsidiaries or its employee benefit plans,
      files a Schedule TO or any schedule, form or report under the Exchange Act
      disclosing that such person or group has become the direct or indirect
“beneficial owner”, as defined in Rule 13d-3 under the Exchange Act, of the
      common equity of the Issuer representing more than 50% of the voting power
      of
      such common equity entitled to vote generally in the election of
      directors.

     

    (iv) If
      Wachovia reasonably determines that it is advisable to terminate all or a
      portion of the Transaction so that Wachovia’s related hedging activities will
      comply with applicable securities laws, rules or regulations.

     

    (o)  Effectiveness.
      If,
      prior to the Effective Date, Wachovia reasonably determines that it is advisable
      to cancel the Transaction because of concerns that Wachovia's related hedging
      activities could be viewed as not complying with applicable securities laws,
      rules or regulations, the Transaction shall be cancelled and shall not become
      effective, and (i) neither party shall have any rights with respect to or
      obligation to the other party in respect of the Transaction
      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 date of such
      termination.

     

    (p)  Terms
      relating to the Agent.

     

    (i)
       The
      Agent
      is registered as a broker-dealer with the U.S. Securities and Exchange
      Commission and the National Association of Securities Dealers, is acting
      hereunder for and on behalf of Wachovia solely in its capacity as agent for
      Wachovia pursuant to instructions from Wachovia, and is not and will not be
      acting as the Issuer’s agent, broker, advisor or fiduciary in any respect under
      or in connection with this Transaction.

     

    (ii)
       In
      addition to acting as Wachovia’s agent in executing this Transaction, the Agent
      is authorized from time to time to give written payment and/or delivery
      instructions to the Issuer directing it to make its payments and/or deliveries
      under this Transaction to an account of the Agent for remittance to Wachovia
      (or
      its designee), and for that purpose any such payment or delivery by the Issuer
      to the Agent shall be treated as a payment or delivery to Wachovia.

     

    (iii)
       Except
      as
      otherwise provided herein, any and all notices, demands, or communications
      of
      any kind transmitted in writing by either Wachovia or the Issuer under or in
      connection with this Transaction will be transmitted exclusively by such party
      to the other party through the Agent at the following address:

     

    Wachovia
      Capital Markets, LLC

    201
      South
      College Street, 6th Floor

    Charlotte,
      NC 28288-0601

    Facsimile
      No.: (704) 383-8425

    Telephone
      No.: (704) 715-8086

    Attention:
      Equity Derivatives

     

    (iv)
       The
      Agent
      shall have no responsibility or liability to Wachovia or the Issuer for or
      arising from (A) any failure by either Wachovia or the Issuer to perform any
      of
      their respective obligations under or in connection with this Transaction,
      (B)
      the collection or enforcement of any such obligations, or (C) the exercise
      of
      any of the rights and remedies of either Wachovia or the Issuer under or in
      connection with this Transaction. Each of Wachovia and the Issuer agrees to
      proceed solely against the other to collect or enforce any such obligations,
      and
      the Agent shall have no liability in respect of this Transaction except for
      its
      gross negligence or willful misconduct in performing its duties as the agent
      of
      Wachovia.

     

    (v)
       Upon
      written request, the Agent will furnish to Wachovia and the Issuer the date
      and
      time of the execution of this Transaction and a statement as to the source
      and
      amount of any remuneration received or to be received by the Agent in connection
      with this Transaction.

     

    (q)  Waiver
      of Trial by Jury.
      EACH
      OF ISSUER AND BUYER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE
      EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT
      TO
      TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON
      CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION
      OR
      THE ACTIONS OF BUYER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR
      ENFORCEMENT HEREOF.

     

    (r)  Governing
      Law.
      THIS
      CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. THE PARTIES
      HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE
      STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF
      NEW
      YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION
      TO
      THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO,
      THESE COURTS.

     

    

     

    

     

    

     

    Issuer
      hereby agrees (a) to check this Confirmation carefully and immediately upon
      receipt so that errors or discrepancies can be promptly identified and rectified
      and (b) to confirm that the foregoing (in the exact form provided by
      Wachovia) correctly sets forth the terms of the agreement between Wachovia
      and
      Issuer with respect to the Transaction, by manually signing this Confirmation
      or
      this page hereof as evidence of agreement to such terms and providing the other
      information requested herein and immediately returning an executed copy to
      us by
      facsimile at 212-214-5913 (Attention: Equity Division Documentation Unit, by
      telephone contact 212-214-6100).

     

    

     

    
      	
              Yours
                faithfully,

               

            
	
              WACHOVIA
                BANK, NATIONAL ASSOCIATION 

            
	
              By:
                Wachovia Capital Markets, LLC, 

            
	
              acting
                solely in its capacity as its Agent

               

            
	 
	
              By:
                ________________________________

            
	
              Name:
                

            
	
              Title:

               

            
	
              WACHOVIA
                CAPITAL MARKETS, LLC, 

            
	
              acting
                solely in its capacity as Agent

            
	
              of
                Wachovia Bank, National Association

               

            
	 
	
              By:
                ________________________________

            
	
              Name:

            
	
              Title:

            

    

    

    
      	
              Agreed
                and Accepted By:

               

            
	 
	
              CHARMING
                SHOPPES, INC.

               

            
	 
	
              By:_____________________________________

            
	
              Name:

            
	
              Title:

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      A

    

    For
      each
      Component of the Transaction, the Number of Warrants and Expiration Date is
      set
      forth below.

    

    
      	
              Component
                Number

            	
              Expiration
                Date

            	
              Number
                of Warrants

            
	
              1

            	
              July
                30, 2014

            	
              42,671

            
	
              2

            	
              July
                31, 2014

            	
              42,671

            
	
              3

            	
              August
                1, 2014

            	
              42,671

            
	
              4

            	
              August
                4, 2014

            	
              42,671

            
	
              5

            	
              August
                5, 2014

            	
              42,671

            
	
              6

            	
              August
                6, 2014

            	
              42,671

            
	
              7

            	
              August
                7, 2014

            	
              42,671

            
	
              8

            	
              August
                8, 2014

            	
              42,671

            
	
              9

            	
              August
                11, 2014

            	
              42,671

            
	
              10

            	
              August
                12, 2014

            	
              42,671

            
	
              11

            	
              August
                13, 2014

            	
              42,671

            
	
              12

            	
              August
                14, 2014

            	
              42,671

            
	
              13

            	
              August
                15, 2014

            	
              42,671

            
	
              14

            	
              August
                18, 2014

            	
              42,671

            
	
              15

            	
              August
                19, 2014

            	
              42,671

            
	
              16

            	
              August
                20, 2014

            	
              42,671

            
	
              17

            	
              August
                21, 2014

            	
              42,671

            
	
              18

            	
              August
                22, 2014

            	
              42,671

            
	
              19

            	
              August
                25, 2014

            	
              42,671

            
	
              20

            	
              August
                26, 2014

            	
              42,671

            
	
              21

            	
              August
                27, 2014

            	
              42,671

            
	
              22

            	
              August
                28, 2014

            	
              42,671

            
	
              23

            	
              August
                29, 2014

            	
              42,671

            
	
              24

            	
              September
                2, 2014

            	
              42,671

            
	
              25

            	
              September
                3, 2014

            	
              42,671

            
	
              26

            	
              September
                4, 2014

            	
              42,671

            
	
              27

            	
              September
                5, 2014

            	
              42,671

            
	
              28

            	
              September
                8, 2014

            	
              42,671

            
	
              29

            	
              September
                9, 2014

            	
              42,671

            
	
              30

            	
              September
                10, 2014

            	
              42,671

            
	
              31

            	
              September
                11, 2014

            	
              42,671

            
	
              32

            	
              September
                12, 2014

            	
              42,671

            
	
              33

            	
              September
                15, 2014

            	
              42,671

            
	
              34

            	
              September
                16, 2014

            	
              42,671

            
	
              35

            	
              September
                17, 2014

            	
              42,671

            
	
              36

            	
              September
                18, 2014

            	
              42,671

            
	
              37

            	
              September
                19, 2014

            	
              42,671

            
	
              38

            	
              September
                22, 2014

            	
              42,671

            
	
              39

            	
              September
                23, 2014

            	
              42,671

            
	
              40

            	
              September
                24, 2014

            	
              42,671

            
	
              41

            	
              September
                25, 2014

            	
              42,671

            
	
              42

            	
              September
                26, 2014

            	
              42,671

            
	
              43

            	
              September
                29, 2014

            	
              42,671

            
	
              44

            	
              September
                30, 2014

            	
              42,671

            
	
              45

            	
              October
                1, 2014

            	
              42,671

            
	
              46

            	
              October
                2, 2014

            	
              42,671

            
	
              47

            	
              October
                3, 2014

            	
              42,671

            
	
              48

            	
              October
                6, 2014

            	
              42,671

            
	
              49

            	
              October
                7, 2014

            	
              42,671

            
	
              50

            	
              October
                8, 2014

            	
              42,671

            
	
              51

            	
              October
                9, 2014

            	
              42,671

            
	
              52

            	
              October
                10, 2014

            	
              42,671

            
	
              53

            	
              October
                13, 2014

            	
              42,671

            
	
              54

            	
              October
                14, 2014

            	
              42,671

            
	
              55

            	
              October
                15, 2014

            	
              42,671

            
	
              56

            	
              October
                16, 2014

            	
              42,671

            
	
              57

            	
              October
                17, 2014

            	
              42,671

            
	
              58

            	
              October
                20, 2014

            	
              42,671

            
	
              59

            	
              October
                21, 2014

            	
              42,671

            
	
              60

            	
              October
                22, 2014

            	
              42,671

            
	
              61

            	
              October
                23, 2014

            	
              42,671

            
	
              62

            	
              October
                24, 2014

            	
              42,671

            
	
              63

            	
              October
                27, 2014

            	
              42,671

            
	
              64

            	
              October
                28, 2014

            	
              42,671

            
	
              65

            	
              October
                29, 2014

            	
              42,671

            
	
              66

            	
              October
                30, 2014

            	
              42,671

            
	
              67

            	
              October
                31, 2014

            	
              42,671

            
	
              68

            	
              November
                3, 2014

            	
              42,671

            
	
              69

            	
              November
                4, 2014

            	
              42,671

            
	
              70

            	
              November
                5, 2014

            	
              42,671

            
	
              71

            	
              November
                6, 2014

            	
              42,671

            
	
              72

            	
              November
                7, 2014

            	
              42,671

            
	
              73

            	
              November
                10, 2014

            	
              42,671

            
	
              74

            	
              November
                11, 2014

            	
              42,671

            
	
              75

            	
              November
                12, 2014

            	
              42,671

            
	
              76

            	
              November
                13, 2014

            	
              42,671

            
	
              77

            	
              November
                14, 2014

            	
              42,671

            
	
              78

            	
              November
                17, 2014

            	
              42,671

            
	
              79

            	
              November
                18, 2014

            	
              42,671

            
	
              80

            	
              November
                19, 2014

            	
              42,671

            
	
              81

            	
              November
                20, 2014

            	
              42,671

            
	
              82

            	
              November
                21, 2014

            	
              42,671

            
	
              83

            	
              November
                24, 2014

            	
              42,671

            
	
              84

            	
              November
                25, 2014

            	
              42,671

            
	
              85

            	
              November
                26, 2014

            	
              42,671

            
	
              86

            	
              November
                28, 2014

            	
              42,671

            
	
              87

            	
              December
                1, 2014

            	
              42,671

            
	
              88

            	
              December
                2, 2014

            	
              42,671

            
	
              89

            	
              December
                3, 2014

            	
              42,671

            
	
              90

            	
              December
                4, 2014

            	
              42,671

            
	
              91

            	
              December
                5, 2014

            	
              42,671

            
	
              92

            	
              December
                8, 2014

            	
              42,671

            
	
              93

            	
              December
                9, 2014

            	
              42,671

            
	
              94

            	
              December
                10, 2014

            	
              42,671

            
	
              95

            	
              December
                11, 2014

            	
              42,671

            
	
              96

            	
              December
                12, 2014

            	
              42,671

            
	
              97

            	
              December
                15, 2014

            	
              42,671

            
	
              98

            	
              December
                16, 2014

            	
              42,671

            
	
              99

            	
              December
                17, 2014

            	
              42,671

            
	
              100

            	
              December
                18, 2014

            	
              42,725Unassociated Document

     

    Exhibit
      10.1

    

    

    LOEWS
      CORPORATION

    2000
      STOCK OPTION PLAN

    

    (as
      amended through April 10, 2007)

    

    

    
      	
              Section
                1.

            	
              General

            

    

    

    1.1  Purpose.  The
      Loews Corporation 2000 Stock Option Plan (the “Plan”) has been established by
      Loews Corporation (the “Company”) to (i) attract and retain persons eligible to
      participate in the Plan, (ii) motivate Participants, by means of appropriate
      incentives, to achieve long-term Company goals, and reward Participants for
      achievement of those goals, and (iii) provide incentive compensation
      opportunities that are competitive with those of other similar companies, and
      thereby promote the financial interest of the Company and its
      Subsidiaries.

    

    1.2  Operation
      and Administration.  The
      operation and administration of the Plan shall be subject to the provisions
      of
      Section 4 (relating to operation and administration). Capitalized terms in
      the
      Plan shall be defined as set forth in the Plan (including the definition
      provisions of Section 7 of the Plan).

    

    
      	
              Section
                2.

            	
              Options

            

    

    

    2.1  Option
      Grant.  The
      Committee may grant Options in accordance with this Section 2.

    

    2.2  Definitions.  The
      grant of an “Option” permits the Participant to purchase shares of Stock at an
      Exercise Price established by the Committee. Any Option granted under the Plan
      may be either an incentive stock option (an “ISO”) or a non-qualified option (an
“NQO”), as determined in the discretion of the Committee. An “ISO” is an Option
      that is intended to be an “incentive stock option” described in section 422(b)
      of the Code and does in fact satisfy the requirements of that section. An “NQO”
is an Option that is not intended to be an “incentive stock option” as that term
      is described in section 422(b) of the Code, or that fails to satisfy the
      requirements of that section.

    

    2.3  Exercise
      Price.  The
      “Exercise Price” of each Option granted under this Section 2 shall be
      established by the Committee or shall be determined by a method established
      by
      the Committee at the time the Option is granted; except that the Exercise Price
      shall not be less than 100% of the Fair Market Value of a share of Stock on
      the
      date of grant (or, if greater, the par value of a share of Stock). In no event
      may any Option granted under this Plan be amended, other than pursuant to
      Section 4.2(e), to decrease the Exercise Price thereof, be cancelled in
      conjunction with the grant of any new Option with a lower Exercise Price, or
      otherwise be subject to any action that would be treated, for accounting
      purposes, as a “repricing” of such Option, unless such amendment, cancellation,
      or action is approved by the Company’s shareholders.

    

    2.4  Vesting
      and Exercise.  An
      Option shall be exercisable in accordance with such terms and conditions and
      during such periods as may be established by the Committee.

    

    
      	
              (a)

            	
              Unless
                otherwise provided by the Committee at the time of grant or thereafter,
                each Option shall vest and become exercisable in four equal annual
                installments beginning on the first anniversary of the date of grant,
                and
                shall thereafter remain exercisable during the
                Term.

            

    

    

    
      	
              (b)

            	
              Unless
                otherwise provided by the Committee at the time of grant or thereafter,
                the Term of each Option shall end on the earliest of (1) the date
                on which
                such Option has been exercised in full, (2) the date on which the
                Participant experiences a Termination for Cause or a voluntary
                Termination, (3) the one-year anniversary of the date on which the
                Participant experiences a Termination due to death or Disability,
                (4) the
                three-year anniversary of the date on which the Participant experiences
                a
                Termination due to such person’s Retirement, and (5) the 90th day after
                the Participant experiences a Termination for any other reason; provided,
                that in no event may the Term exceed ten (10) years from the date
                of grant
                of the Option. Except as otherwise determined by the Committee at
                the time
                of grant or thereafter, upon the occurrence of a Termination of a
                Participant for any reason, the Term of all outstanding Options held
                by
                the Participant that are unvested as of the date of such Termination
                shall
                thereupon end and such unvested Options
                shall

            

    

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    be
      forfeited immediately; provided, however, that the Committee may, in its sole
      discretion, accelerate the vesting of any Option and/or extend the exercise
      period of any Option (but not beyond the ten-year anniversary of the grant
      date).

    

    
      	
              (c)

            	
              An
                Option may be exercised and the underlying shares purchased in accordance
                with this Section 2 at any time after the Option with respect to
                those
                shares vests and before the expiration of the Term. To exercise an
                Option,
                the Participant shall give written notice to the Company stating
                the
                number of shares with respect to which the Option is being
                exercised.

            

    

    

    
      	
              (d)

            	
              The
                full Exercise Price for shares of Stock purchased upon the exercise
                of any
                Option shall be paid at the time of such exercise (except that, in
                the
                case of an exercise arrangement approved by the Committee and described
                in
                the last sentence of this paragraph (d), payment may be made as soon
                as
                practicable after the exercise). The Exercise Price shall be payable
                by
                check, or such other instrument as the Committee may accept. The
                Committee
                may permit a Participant to elect to pay the Exercise Price upon
                the
                exercise of an Option by irrevocably authorizing a third party to
                sell
                shares of Stock (or a sufficient portion of the shares) acquired
                upon
                exercise of the Option and remit to the Company a sufficient portion
                of
                the sale proceeds to pay the entire Exercise Price and any tax withholding
                resulting from such exercise. In the case of any ISO such permission
                must
                be provided for at the time of grant and set forth in an Award
                Certificate. In addition, if approved by the Committee, payment,
                in full
                or in part, may also be made in the form of unrestricted Mature Shares,
                based on the Fair Market Value of the Mature Shares on the date the
                Option
                is exercised; provided, however, that, in the case of an ISO the
                right to
                make a payment in such Mature Shares may be authorized only at the
                time
                the Option is granted.

            

    

    

    Section
      3.  Stock Appreciation Rights

    

    3.1  Types
      and Nature of Stock Appreciation Rights.  A
“Stock
      Appreciation Right” is the right to receive an amount equal in value to the
      excess, if any, on the date of exercise, of the Fair Market Value of a share
      of
      Stock over the Exercise Price of the Stock Appreciation Right. Stock
      Appreciation Rights may be “Tandem SARs,” which are granted in conjunction with
      an Option, or “Free-Standing SARs,” which are not granted in conjunction with an
      Option. Upon the exercise of a Stock Appreciation Right, the Participant shall
      be entitled to receive an amount equal to the product of (i) the excess of
      the
      Fair Market Value of one share of Stock over the Exercise Price of the
      applicable Stock Appreciation Right, multiplied by (ii) the number of shares
      of
      Stock in respect of which the Stock Appreciation Right has been exercised.
      Such
      amount shall be paid in cash, Stock, or a combination thereof (with the amount
      of such cash being determined based upon the Fair Market Value of the Stock
      on
      the date of exercise). As determined by the Committee, the applicable Award
      Certificate shall specify whether such payment is to be made in cash or Stock
      or
      both, or shall reserve to the Committee or the Participant the right to make
      that determination prior to or upon the exercise of the Stock Appreciation
      Right.

    

    3.2  Tandem
      SARs.  A
      Tandem SAR may be granted on the grant date of the related Option or, in the
      case of a related NQO, at any time after the grant date thereof while the
      related NQO remains outstanding. A Tandem SAR shall be exercisable only at
      such
      time or times and to the extent that the related Option is exercisable in
      accordance with the provisions of Section 2, and shall at all times have the
      same Exercise Price as the related Option. A Tandem SAR shall terminate or
      be
      forfeited upon the exercise or forfeiture of the related Option, and the related
      Option shall terminate or be forfeited upon the exercise or forfeiture of the
      Tandem SAR.

    

    3.3  Exercise
      Price.  The
      “Exercise Price” per share of Stock subject to a Free-Standing SAR shall be
      determined by the Committee and set forth in the applicable Award Certificate,
      and shall not be less than 100% of the Fair Market Value of a share of Stock
      on
      the applicable grant date. In no event may any Free-Standing SAR granted under
      this Plan be amended, other than pursuant to Section 4.2(e), to decrease the
      Exercise Price thereof, be cancelled in conjunction with the grant of any new
      Option or Free-Standing SAR with a lower Exercise Price, or otherwise be subject
      to any action that would be treated, for accounting purposes, as a “repricing”
of such Free-Standing SAR, unless such amendment, cancellation, or action is
      approved by the Company’s shareholders.

    

    3.4  Term.  Unless
      otherwise provided by the Committee at the time of grant or thereafter, the
      

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

    Term
      of
      each Free-Standing SAR shall end on the earliest of (1) the date on which such
      Free-Standing SAR has been exercised in full, (2) the date on which the
      Participant experiences a Termination for Cause or a voluntary Termination,
      (3)
      the one-year anniversary of the date on which the Participant experiences a
      Termination due to death or Disability, (4) the three-year anniversary of the
      date on which the Participant experiences a Termination due to such person’s
      Retirement, and (5) the 90th day after the Participant experiences a Termination
      for any other reason; provided, that in no event may the Term exceed ten (10)
      years from the date of grant of the Free-Standing SAR. Except as otherwise
      determined by the Committee at the time of grant, upon the occurrence of a
      Termination of a Participant for any reason, the Term of all outstanding
      Free-Standing SARs held by the Participant that are unvested as of the date
      of
      such Termination shall thereupon end and such unvested Free-Standing SARs shall
      be forfeited immediately provided, however, that the Committee may, in its
      sole
      discretion, accelerate the vesting of any Stock Appreciation Right and/or extend
      the exercise period of any Stock Appreciation Right (but not beyond the ten-year
      anniversary of the grant date).

    

    3.5  Vesting
      and Exercise.  Except
      as otherwise provided herein, Free-Standing SARs shall vest and be exercisable
      at such time or times and subject to such terms and conditions as shall be
      determined by the Committee and set forth in the applicable Award
      Certificate.

    

    Section
      4.  Operation and Administration

    

    4.1  Effective
      Date.  The
      Plan is effective as of January 18, 2000 (the “Effective Date”). The Plan shall
      be unlimited in duration and, in the event of Plan termination, shall remain
      in
      effect as long as any Options or Stock Appreciation Rights under it are
      outstanding.

    

    4.2  Shares
      Subject to Plan.  The
      shares of Stock for which Options and Stock Appreciation Rights may be granted
      under the Plan shall be subject to the following:

    

    
      	
              (a)

            	
              The
                shares of Stock with respect to which Options and Stock Appreciation
                Rights may be granted under the Plan shall be shares currently authorized
                but unissued or currently held or subsequently acquired by the Company
                as
                treasury shares, including shares purchased in the open market or
                in
                private transactions.

            

    

     

    
      	
              (b)

            	
              Subject
                to the following provisions of this subsection 4.2, the maximum number
                of
                shares of Stock that may be delivered to Participants and their
                beneficiaries under the Plan shall be 12,000,000 shares of Stock
                (as
                adjusted to reflect stock splits effected March 2001 and May
                2006).

            

    

     

    
      	
              (c)

            	
              To
                the extent any shares of Stock covered by an Option are not delivered
                to a
                Participant or beneficiary because the Option is forfeited or canceled,
                such shares shall not be deemed to have been delivered for purposes
                of
                determining the maximum number of shares of Stock available for delivery
                under the Plan.

            

    

     

    
      	
              (d)

            	
              Subject
                to paragraph 4.2(e), the maximum number of shares that may be covered
                by
                Options and/or Stock Appreciation Rights granted to any one individual
                during any one calendar year period shall be 1,200,000 shares (as
                adjusted
                to reflect stock splits effected March 2001 and May
                2006).

            

    

     

    
      	
              (e)

            	
              In
                the event of a corporate transaction involving the Company (including,
                without limitation, any stock dividend, stock split, extraordinary
                cash
                dividend, recapitalization, reorganization, merger, consolidation,
                split-up, spin-off, combination or exchange of shares), the Committee
                shall make adjustments to preserve the benefits or potential benefits
                of
                the Plan and outstanding Options and/or Stock Appreciation Rights.
                Action
                by the Committee may include: (i) adjustment of the number and kind
                of
                shares which may be delivered under the Plan; (ii) adjustment of
                the
                number and kind of shares referred to in Sections 4.2 (b) and (d);
                (iii)
                adjustment of the number and kind of shares subject to outstanding
                Options
                and Stock Appreciation Rights; (iv) adjustment of the Exercise Price
                of
                outstanding Options and Stock Appreciation Rights; (v) settlement
                in cash
                or Stock in an amount equal to the excess of the value of the Stock
                subject to such Options and Stock Appreciation Rights over the aggregate
                Exercise Price (as determined by the Committee)
                of

            

    

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

    

    such
      Options and Stock Appreciation Rights; and (vi) any other adjustments that
      the
      Committee determines to be equitable. The Committee shall make all such
      adjustments, and its determination as to what adjustments shall be made, and
      the
      extent thereof, shall be final.

    

    4.3  General
      Restrictions.  Delivery
      of shares of Stock or other amounts under the Plan shall be subject to the
      following:

    

    
      	
              (a)

            	
              Notwithstanding
                any other provision of the Plan, the Company shall have no liability
                to
                deliver any shares of Stock under the Plan or make any other distribution
                of benefits under the Plan unless such delivery or distribution would
                comply with all applicable laws (including, without limitation, the
                requirements of the Securities Act of 1933 and Code Section 409A),
                and the
                applicable requirements of any securities exchange or similar
                entity.

            

    

     

    
      	
              (b)

            	
              To
                the extent that the Plan provides for issuance of stock certificates
                to
                reflect the issuance of shares of Stock, the issuance may be effected
                on a
                non-certificated basis, to the extent not prohibited by applicable
                law or
                the applicable rules of any stock
                exchange.

            

    

    

    4.4  Tax
      Withholding.  All
      distributions under the Plan are subject to withholding of all applicable taxes,
      and the delivery of any shares or other benefits under the Plan shall be
      conditioned on satisfaction of the applicable withholding obligations. The
      Committee, in its discretion, and subject to such requirements as the Committee
      may impose prior to the occurrence of such withholding, may permit such
      withholding obligations to be satisfied through cash payment by the Participant,
      through the surrender of shares of Stock which the Participant already owns,
      or
      through the surrender of shares of Stock to which the Participant is otherwise
      entitled under the Plan; provided that surrender of shares may be used only
      to
      satisfy the minimum withholding required by law.

    

    4.5  Grant
      and Use of Options.  In
      the discretion of the Committee, more than one Option and/or Stock Appreciation
      Right may be granted to a Participant. Options and Stock Appreciation Rights
      may
      be granted as alternatives to or replacements of Options and Stock Appreciation
      Rights granted or outstanding under the Plan, or any other plan or arrangement
      of the Company or a Subsidiary (including a plan or arrangement of a business
      or
      entity, all or a portion of which is acquired by the Company or a Subsidiary).
      Subject to the overall limitation on the number of shares of Stock that may
      be
      delivered under the Plan, the Committee may use available shares of Stock as
      the
      form of payment for compensation, grants or rights earned or due under any
      other
      compensation plans or arrangements of the Company or a Subsidiary, including
      the
      plans and arrangements of the Company or a Subsidiary assumed in business
      combinations. Notwithstanding the foregoing, the assumption by the Company
      of
      options in connection with the acquisition of a business or other entity and
      the
      conversion of such options into options to acquire Stock shall not be treated
      as
      a new grant of Options under the Plan unless specifically so provided by the
      Committee.

    

    4.6  Settlement
      of Options.  The
      Committee may from time to time establish procedures pursuant to which a
      Participant may elect to defer, until a time or times later than the exercise
      of
      an Option or Stock Appreciation Right, receipt of all or a portion of the shares
      of Stock subject to such Option or Stock Appreciation Right and/or to receive
      cash at such later time or times in lieu of such deferred shares, all on such
      terms and conditions as the Committee shall determine. If any such deferrals
      are
      permitted, then a Participant who elects such deferral shall not have any rights
      as a stockholder with respect to such deferred shares unless and until shares
      are actually delivered to the Participant with respect thereto, except to the
      extent otherwise determined by the Committee. 

    

    4.7  Code
      Section 409A.

    

    
      	
              (a)

            	
              It
                is the intention of the Company that no grant of Options or Stock
                Appreciation Rights shall be “deferred compensation” subject to Code
                Section 409A, unless and to the extent that the Committee specifically
                determines otherwise as provided below, and the Plan and the terms
                and
                conditions of all grants of Options and Stock Appreciation Rights
                shall be
                interpreted accordingly.

            

    

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

    

    
      	
              (b)

            	
              The
                terms and conditions governing any grants of Options and Stock
                Appreciation Rights that the Committee determines will be subject
                to Code
                Section 409A, including any rules for elective or mandatory deferral
                of
                the delivery of cash pursuant thereto, shall be set forth in writing,
                and
                shall comply in all respects with Code Section
                409A.

            

    

    

    4.8  Other
      Plans.  Amounts
      payable under this Plan shall not be taken into account as compensation for
      purposes of any other employee benefit plan or program of the Company or any
      of
      its Subsidiaries, except to the extent otherwise provided by such plans or
      programs, or by an agreement between the affected Participant and the
      Company.

    

    4.9  Heirs
      and Successors.  The
      terms of the Plan shall be binding upon, and inure to the benefit of, the
      Company and its successors and assigns, and upon any person acquiring, whether
      by merger, consolidation, purchase of assets or otherwise, all or substantially
      all of the Company’s assets and business.

    

    4.10  Transferability.  Options
      and Stock Appreciation Rights granted under the Plan are not transferable except
      (i) as designated by the Participant by will or by the laws of descent and
      distribution or (ii) in the case of a Free-Standing SAR or NQO and any
      associated Tandem SAR, as otherwise expressly permitted by the Committee
      including, if so permitted, pursuant to a transfer to such Participant’s
      immediate family, whether directly or indirectly or by means of a trust or
      partnership or otherwise. If any rights exercisable by a Participant or benefits
      deliverable to a Participant under any Award Certificate under the Plan have
      not
      been exercised or delivered, respectively, at the time of the Participant’s
      death, such rights shall be exercisable by the Designated Beneficiary, and
      such
      benefits shall be delivered to the Designated Beneficiary, in accordance with
      the provisions of the applicable terms of the Award Certificate and the Plan.
      The “Designated Beneficiary” shall be the beneficiary or beneficiaries
      designated by the Participant to receive benefits under the Company’s group term
      life insurance plan or such other person or persons as the Participant may
      designate by notice to the Company. If a deceased Participant fails to have
      designated a beneficiary, or if the Designated Beneficiary does not survive
      the
      Participant, any rights that would have been exercisable by the Participant
      and
      any benefits distributable to the Participant shall be exercised by or
      distributed to the legal representative of the estate of the Participant. If
      a
      deceased Participant designates a beneficiary and the Designated Beneficiary
      survives the Participant but dies before the Designated Beneficiary’s exercise
      of all rights under the Award Certificate or before the complete distribution
      of
      benefits to the Designated Beneficiary under the Award Certificate, then any
      rights that would have been exercisable by the Designated Beneficiary shall
      be
      exercised by the legal representative of the estate of the Designated
      Beneficiary, and any benefits distributable to the Designated Beneficiary shall
      be distributed to the legal representative of the estate of the Designated
      Beneficiary. All Options and Stock Appreciation Rights shall be exercisable,
      subject to the terms of this Plan, only by the Participant or any person to
      whom
      such Option or Stock Appreciation Right is transferred pursuant to this
      paragraph, it being understood that the term Participant shall include such
      transferee for purposes of the exercise provisions contained herein.

    

    4.11  Notices.  Any
      written notices provided for in the Plan or under any Award Certificate shall
      be
      in writing and shall be deemed sufficiently given if either hand delivered
      or if
      sent by confirmed fax or overnight courier, or by postage paid first class
      mail.
      Notice and communications shall be effective when actually received by the
      addressee. Notices shall be directed, if to the Participant, at the
      Participant’s address indicated in the Award Certificate, or if to the Company,
      at the Company’s principal executive office to the attention of the Company’s
      Secretary.

    

    4.12  Action
      by Company.  Any
      action required or permitted to be taken by the Company shall be by resolution
      of the Board, or by action of one or more members of the Board (including a
      committee of the Board) who are duly authorized to act for the Board, or by
      a
      duly authorized officer of the Company.

    

    4.13  Limitation
      of Implied Rights.

    

    
      	
              (a)

            	
              Neither
                a Participant nor any other person shall, by reason of participation
                in
                the Plan, acquire any right in or title to any assets, funds or property
                of the Company whatsoever, including, without limitation, any specific
                funds, assets, or other property which the Company, in its
                sole

            

    

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

    

    discretion,
      may set aside in anticipation of a liability under the Plan. A Participant
      shall
      have only a contractual right to the amounts, if any, payable under the Plan,
      unsecured by any assets of the Company, and nothing contained in the Plan shall
      constitute a guarantee that the assets of the Company shall be sufficient to
      pay
      any benefits to any person.

    

    
      	
              (b)

            	
              The
                Plan does not constitute a contract of employment, and selection
                as a
                Participant will not give any Participant the right to be retained
                in the
                employ of, or as a director or consultant to, the Company or any
                Subsidiary, nor any right or claim to any benefit under the Plan,
                unless
                such right or claim has specifically accrued under the terms of the
                Plan.

            

    

    

    4.14  Gender
      and Number.  Where
      the context admits, words in any gender shall include any other gender, words
      in
      the singular shall include the plural and the plural shall include the
      singular.

    

    4.15  Laws
      Applicable to Construction.  The
      interpretation, performance and enforcement of this Plan and all Award
      Certificates shall be governed by the laws of the State of Delaware without
      reference to principles of conflict of laws, as applied to contracts executed
      in
      and performed wholly within the State of Delaware.

    

    4.16  Evidence.  Evidence
      required of anyone under the Plan may be by certificate, affidavit, document
      or
      other information which the person acting on it considers pertinent and
      reliable, and signed, made or presented by the proper party or
      parties.

    

    Section
      5.  Committee

    

    5.1  Administration.  The
      authority to control and manage the operation and administration of the Plan
      shall be vested in the Compensation Committee of the Board or such other
      committee of the Board as the Board may from time to time designate (the
“Committee”) in accordance with Section 4. In addition, the Board may exercise
      any power given to the Committee under the Plan.

    

    5.2  Powers
      of Committee.  The
      Committee’s administration of the Plan shall be subject to the
      following:

    

    
      	
              (a)

            	
              Subject
                to the provisions of the Plan, the Committee will have the authority
                and
                discretion to select from among the Eligible Grantees those persons
                who
                shall receive Options and/or Stock Appreciation Rights, to determine
                the
                grant date of, the number of shares subject to and the Exercise Price
                of
                those Options and Stock Appreciation Rights, to establish all other
                terms
                and conditions of such Options and Stock Appreciation Rights, and
                (subject
                to the restrictions imposed by Section 6) to cancel or suspend Options
                and
                Stock Appreciation Rights.

            

    

    

    
      	
              (b)

            	
              The
                Committee will have the authority and discretion to interpret the
                Plan, to
                establish, amend, and rescind any rules and regulations relating
                to the
                Plan, and to make all other determinations that may be necessary
                or
                advisable for the administration of the
                Plan.

            

    

    

    
      	
              (c)

            	
              Any
                interpretation of the Plan by the Committee and any decision made
                by it
                under the Plan is final and binding on all
                persons.

            

    

    

    
      	
              (d)

            	
              In
                controlling and managing the operation and administration of the
                Plan, the
                Committee shall take action in a manner that conforms to the articles
                and
                by-laws of the Company, and applicable state corporate
                law.

            

    

    

    5.3  Delegation
      by Committee.  Except
      to the extent prohibited by applicable law or the applicable rules of a stock
      exchange, the Committee may allocate all or any portion of its responsibilities
      and powers to any one or more of its members and may delegate all or any part
      of
      its responsibilities and powers to any person or persons selected by it. Any
      such allocation or delegation may be revoked by the Committee at any
      time.

    

    5.4  Information
      to be Furnished to Committee.  The
      Company and Subsidiaries shall furnish the Committee with such data and
      information as it determines may be required for it to discharge its

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

    duties.
      The records of the Company and Subsidiaries as to an employee’s or Participant’s
      employment, engagement, Termination, leave of absence, reemployment and
      compensation shall be conclusive on all persons unless determined to be
      incorrect. Participants and other persons eligible for benefits under the Plan
      must furnish the Committee such evidence, data or information as the Committee
      considers desirable to carry out the terms of the Plan.

    

    Section
      6.  Amendment and Termination

    

    The
      Board
      may, at any time, amend or terminate the Plan; provided that no amendment or
      termination may, in the absence of written consent to the change by the affected
      Participant (or, if the Participant is not then living, the affected
      beneficiary), adversely affect the rights of any Participant or beneficiary
      under any Option or Stock Appreciation Right granted under the Plan prior to
      the
      date such amendment is adopted by the Board; and further provided that
      adjustments pursuant to paragraph 4.2(e) shall not be subject to the foregoing
      limitations of this Section 6.

    

    Section
      7.  Defined Terms

    

    As
      used
      in this Plan, the following definitions shall apply:

    

    
      	
              (a)

            	
              Award
                Certificate.  The
                term “Award Certificate” shall mean a written certificate setting forth
                the terms and conditions of an Option or Stock Appreciation Right,
                in such
                form as the Committee may from time to time
                prescribe.

            

    

     

    
      	
              (b)

            	
              Board.  The
                term “Board” means the Board of Directors of the
                Company.

            

    

     

    
      	
              (c)

            	
              Cause.  The
                term “Cause” shall have the meaning set forth in the employment or
                engagement agreement between a Participant and the Company or any
                Subsidiary thereof, if such an agreement exists and contains a definition
                of Cause; otherwise Cause shall mean (1) conviction of the Participant
                for
                committing a felony under Federal law or the law of the state in
                which
                such action occurred, (2) dishonesty in the course of fulfilling
                a
                Participant’s employment, engagement or directorial duties, (3) willful
                and deliberate failure on the part of a Participant to perform the
                Participant’s employment, engagement or directorial duties in any material
                respect or (4) such other events as shall be determined in good faith
                by
                the Committee. The Committee shall, unless otherwise provided in
                an Award
                Certificate or employment agreement with the Participant, have the
                sole
                discretion to determine whether Cause exists, and its determination
                shall
                be final.

            

    

     

    
      	
              (d)

            	
              Code.  The
                term “Code” means the Internal Revenue Code of 1986, as amended, the
                Treasury Regulations thereunder and other relevant interpretive guidance
                issued by the Internal Revenue Service or the Treasury Department.
                Reference to any specific section of the Code shall be deemed to
                include
                such regulations and guidance, as well as any successor provision
                of the
                Code. 

            

    

     

    
      	
              (e)

            	
              Committee.  The
                term “Committee” shall have the meaning set forth in Section
                5.1.

            

    

     

    
      	
              (f)

            	
              Company.  The
                term “Company” shall have the meaning set forth in Section
                1.1.

            

    

     

    
      	
              (g)

            	
              Designated
                Beneficiary.  The
                term “Designated Beneficiary” shall have the meaning set forth in Section
                4.10.

            

    

     

    
      	
              (h)

            	
              Disability.  The
                term “Disability” shall mean, unless otherwise provided by the Committee,
                (1) “Disability” as defined in any individual Award Certificate to which
                the Participant is a party, or (2) if there is no such Award Certificate
                or it does not define “Disability,” permanent and total disability as
                determined under the Company’s long-term disability plan applicable to the
                Participant.

            

    

     

    
      	
              (i)

            	
              Effective
                Date.  The
                term “Effective Date” shall have the meaning set forth in Section
                4.1.

            

    

     

    
      	
              (j)

            	
              Eligible
                Grantee.  The
                term “Eligible Grantee” shall mean any individual who is employed on a
                full-time or part-time basis, or who serves as a consultant to, by
                the
                Company or a Subsidiary and

            

    

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

    

    

    any
      non-employee director of the Company. An Option or Stock Appreciation Right
      may
      be granted to an individual in connection with such individual’s hiring or
      engagement prior to the date the individual first performs services for the
      Company or the Subsidiaries, provided that the individual will be an Eligible
      Grantee upon his hiring or engagement, and further provided that such Options
      and/or Stock Appreciation Rights shall not become vested prior to the date
      the
      individual first performs such services.

    

    
      	
              (k)

            	
              Exercise
                Price.  The
                term “Exercise Price” shall have the meaning set forth in Section 2.3 and
                3.3 as applicable.

            

    

     

    
      	
              (l)

            	
              Fair
                Market Value.  The
                “Fair Market Value” of a share of Stock shall be, as of any given date,
                the mean between the highest and lowest reported sales prices on
                the
                immediately preceding date (or, if there are no reported sales on
                such
                immediately preceding date, on the last date prior to such date on
                which
                there were sales) of the Stock on the New York Stock Exchange Composite
                Tape or, if not listed on such exchange, on any other national securities
                exchange on which the Stock is listed or on NASDAQ. If there is no
                regular
                public trading market for such Stock, the Fair Market Value of the
                Stock
                shall be determined by the Committee in good
                faith.

            

    

     

    
      	
              (m)

            	
              Free-Standing
                SAR.  The
                term “Free-Standing SAR” shall have the meaning set forth in Section
                3.1.

            

    

     

    
      	
              (n)

            	
              ISO.  The
                term “ISO” shall have the meaning set forth in Section
                2.2.

            

    

     

    
      	
              (o)

            	
              Mature
                Shares.  The
                term “Mature Shares” shall mean shares of Stock that have been owned by
                the Participant in question for at least six
                months.

            

    

     

    
      	
              (p)

            	
              NQO.  The
                term “NQO” shall have the meaning set forth in Section
                2.2.

            

    

     

    
      	
              (q)

            	
              Option.  The
                term “Option” shall have the meaning set forth in Section
                2.2.

            

    

     

    
      	
              (r)

            	
              Plan.  The
                term “Plan” shall have the meaning set forth in Section
                1.1.

            

    

     

    
      	
              (s)

            	
              Retirement.  The
                term “Retirement” shall mean retirement from active employment with the
                Company pursuant to any retirement plan or program of the Company
                or any
                Subsidiary in which the Participant participates. A Termination by
                a
                consultant or non-employee director shall in no event be considered
                a
                Retirement.

            

    

     

    
      	
              (t)

            	
              Stock.  The
                term “Stock” shall mean shares of common stock of the
                Company.

            

    

     

    
      	
              (u)

            	
              Stock
                Appreciation Right.  The
                term “Stock Appreciation Right “ shall have the meaning set forth in
                Section 3.1.

            

    

     

    
      	
              (v)

            	
              Subsidiary.  The
                term “Subsidiary” means any business or entity in which at any relevant
                time the Company holds at least a 50% equity (voting or non-voting)
                interest.

            

    

     

    
      	
              (w)

            	
              Tandem
                SAR.  The
                term “Tandem SAR” shall have the meaning set forth in Section
                3.1.

            

    

     

    
      	
              (x)

            	
              Term.  The
                term “Term” shall mean the period beginning on the date of grant of an
                Option or Stock Appreciation Right and ending on the date the Option
                or
                Stock Appreciation Right expires pursuant to the Plan and the relevant
                Award Certificate.

            

    

     

    
      	
              (y)

            	
              Termination.  A
                Participant shall be considered to have experienced a Termination
                if he or
                she ceases, for any reason, to be an employee, consultant or non-employee
                director of the Company or any of its Subsidiaries, including, without
                limitation, as a result of the fact that the entity by which he or
                she is
                employed or engaged or of which he or she is a director has ceased
                to be
                affiliated with the Company.

            

    

     

     

    B-8

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