Document:

Exhibit 10.2

 

 

Execution Copy

 

Convertible Note Hedge
Transaction

 

	
  Date:

  	
   

  	
  April 17, 2007

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Lawson Software, Inc.

  
	
   

  	
   

  	
  Attention:

  	
  Treasurer

  
	
   

  	
   

  	
  380 Saint Peter Street

  
	
   

  	
   

  	
  St. Paul, MN 55102

  
	
   

  	
   

  	
  Facsimile:

  	
  651-767-4868

  
	
   

  	
   

  	
  Telephone:

  	
  651-767-4920

  
	
   

  	
   

  	
  Email:

  	
  treasury@lawson.com

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  	
  General Counsel

  
	
   

  	
   

  	
  380 Saint Peter Street

  
	
   

  	
   

  	
  St. Paul, MN 55102

  
	
   

  	
   

  	
  Facsimile:

  	
  651-767-4827

  
	
   

  	
   

  	
  Telephone:

  	
  651-767-4940

  
	
   

  	
   

  	
  Email:

  	
  legal.americas@lawson.com

  
	
   

  	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Lehman Brothers Inc., acting as Agent

  
	
   

  	
   

  	
  Lehman Brothers OTC Derivatives Inc., acting as
  Principal

  
	
   

  	
   

  	
  Andrew Yare - Transaction Management Group

  
	
   

  	
   

  	
  Facsimile:

  	
  646-885-9546 (United States of America)

  
	
   

  	
   

  	
  Telephone:

  	
  212-526-9986

  
	
   

  	
   

  	
   

  	
   

  
	
  Ref. Numbers:

  	
   

  	
  Global Deal ID: 300797

  

 

Dear Sir or Madam:

The purpose of this communication (this “Confirmation”) is to confirm the terms and
conditions of the transaction (the “Transaction”)
entered into between Lehman Brothers OTC Derivatives Inc. (“Party A”) and Lawson Software, Inc. (“Party B”) on the Trade Date specified
below.  This Confirmation constitutes a “Confirmation”
as referred to in the Agreement specified below. This Confirmation is sent on
behalf of both Party A and Lehman Brothers Inc. (“LBI”).  Lehman Brothers OTC Derivatives Inc. is not a member
of the Securities Investor Protection Corporation.

This Confirmation evidences a complete and binding
agreement between Party A and Party B as to the terms of the Transaction to
which this Confirmation relates.  This
Confirmation supplements, forms part of, and is subject to an agreement in the
form of the 1992 ISDA Master Agreement (Multicurrency—Cross Border) (the “Agreement”) as if we had executed an
agreement in such form (but without any Schedule except for the elections set
forth herein) on the Trade Date of the Transaction.  In the event of any inconsistency between the
provisions of the Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction.

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

Lehman Brothers

745
SEVENTH AVENUE,

NEW
YORK NY 10019

 1
 

Definitions and the Swap Definitions, the Equity Definitions will
govern.  Certain defined terms used
herein have the meanings assigned to them in the Indenture to be dated on or
about April 23, 2007 between Party B and The Bank of New York, as trustee (as
may be amended or supplemented from time to time, but only if such amendment or
supplement is consented to by Party A in writing, the “Indenture”) relating to USD 240 million
principal amount of 2.50% senior convertible notes due April 15, 2012 (the “Convertible Notes”) issued by Party B.  In the event of any inconsistency between
either set of Definitions and this Confirmation, or between the Indenture and
this Confirmation, this Confirmation will govern.  For the avoidance of doubt, references herein
to sections of the Indenture are based on the draft of the Indenture most
recently reviewed by the parties at the time of this Confirmation.  If any relevant sections of the Indenture are
changed, added or renumbered following execution of this Confirmation, the
parties will amend this Confirmation in good faith to preserve the economic
intent of the parties.

 

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

 

	
  General Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Agent:

  	
   

  	
  LBI is acting as agent on behalf of Party A and
  Party B for the Transaction. LBI has no obligations, by guarantee,
  endorsement or otherwise, with respect to the performance of the Transaction
  by either party.

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  April 17, 2007

  
	
   

  	
   

  	
   

  
	
  Option Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Option Style:

  	
   

  	
  Modified American, as set forth under “Procedures
  for Exercise” below.

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Party A

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Party B

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  The common stock of Party B, par value USD 0.01 per
  share (Ticker Symbol: LWSN).

  
	
   

  	
   

  	
   

  
	
  Number of
  Options:

  	
   

  	
  The number of Convertible Notes in denominations of
  USD 1,000 principal amount issued by Party B on the closing date of initial
  issuance of the Convertible Notes. For the avoidance of doubt, the Number of
  Options outstanding shall be reduced by each exercise of Options hereunder.

  
	
   

  	
   

  	
   

  
	
  Option
  Entitlement:

  	
   

  	
  As of any date, a number of Shares per Option equal
  to the “Conversion Rate” (as defined in the Indenture), but without regard to
  any adjustments to the “Conversion Rate” pursuant to Sections 10.04(b) or 10.05(i) of the Indenture.

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  As of any date, USD 1,000 divided by the Option
  Entitlement.

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD 57,696,000.00

  
	
   

  	
   

  	
   

  
	
  Premium Payment
  Date:

  	
   

  	
  Four Scheduled Trading Days after the Trade Date.

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  The NASDAQ Global Select Market of the Nasdaq Stock
  Market, Inc.

  
	
   

  	
   

  	
   

  
	
  Related
  Exchange(s):

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures
  for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  The Valuation Time

  

 

Global Deal ID: 300797

 2
 

 

	
  Expiration Date:

  	
   

  	
  April 15, 2012

  
	
   

  	
   

  	
   

  
	
  Potential
  Exercise Dates:

  	
   

  	
  Each Conversion Date

  
	
   

  	
   

  	
   

  
	
  Conversion Date:

  	
   

  	
  Each “Conversion Date” as defined in the Indenture.

  
	
   

  	
   

  	
   

  
	
  Required
  Exercise on Conversion Dates:

  	
   

  	
  On each Conversion Date, a number of Options equal
  to the number of Convertible Notes in denominations of USD 1,000 principal
  amount submitted for conversion on such Conversion Date in accordance with
  the terms of the Indenture shall be automatically exercised by Party B,
  subject to “Notice of Exercise” below.

  
	
   

  	
   

  	
   

  
	
  Automatic
  Exercise:

  	
   

  	
  Applicable, subject to “Notice of Exercise” below.

  
	
   

  	
   

  	
   

  
	
  Notice of
  Exercise:

  	
   

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, in order to exercise any Options, Party B must notify
  Party A (in writing or orally) at least one Scheduled Trading Day prior to
  the first day of the applicable “Conversion Period” (as defined in the
  Indenture) for the Convertible Notes being converted on that Exercise Date
  (the “Notice Deadline”) of (i)
  the number of Options being exercised on that Exercise Date, (ii) such
  Exercise Date and (iii) the scheduled commencement date of the “Conversion
  Period” and settlement date under the Indenture for the Convertible Notes
  converted on the Conversion Date corresponding to such Exercise Date; provided, however, that with respect to Convertible Notes converted
  during the period beginning on, and including, the 25th “Scheduled Trading Day” (as defined in the
  Indenture) prior to the “Maturity Date” (as defined in the Indenture) for
  such Convertible Notes and ending on the “Scheduled Trading Day” (as defined
  in the Indenture) immediately preceding the “Maturity Date”, the Notice
  Deadline shall be the “Scheduled Trading Day” (as defined in the Indenture)
  immediately preceding the “Maturity Date”.

  
	
   

  	
   

  	
   

  
	
  Settlement
  Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement
  Obligation:

  	
   

  	
  In respect of an Exercise Date occurring on a
  Conversion Date, Party A will deliver to Party B on the related Settlement
  Date a number of Shares equal to the aggregate number of Shares that Party B
  is obligated to deliver to the holder(s) of the Convertible Notes converted
  on such Conversion Date pursuant to Section 10.12 of the Indenture and an
  amount of cash equal to the amount, if any, that Party B is obligated to
  deliver to holder(s) of the Convertible Notes on such Conversion Date
  pursuant to Section 10.03 of the Indenture; provided
  that such obligation shall be determined excluding any Shares (or cash for
  fractional Shares) that Party B is obligated to deliver to holder(s) of the
  Convertible Notes as a result of any adjustments to the “Conversion Rate”
  pursuant to Sections 10.04(b) or 10.05(i) of the Indenture and assuming that
  Party B did not make the election set forth in Section 10.13 of the Indenture
  in respect of a “Public Acquirer Change of Control” thereunder; provided further that if the “Volume
  Weighted Average Price” (as defined in the Indenture) is not available on the
  Bloomberg page, the Calculation Agent shall determine the “Volume Weighted
  Average Price” for purposes of calculating the Settlement Obligation in a
  commercially reasonable manner; and provided
  further that if such exercise relates to the conversion of
  Convertible Notes in connection with which holder(s) thereof are entitled to
  receive additional Shares (or cash for

  

 

 3
 

 

	
  

  	
   

  	
  fractional
  Shares) pursuant to the adjustments to the “Conversion Rate” set forth in
  Section  10.04(b) of the
  Indenture, then, notwithstanding the foregoing, the Settlement Obligation
  shall include such additional Shares (or cash for fractional Shares), except that
  the Settlement Obligation shall be capped so that the value of the Settlement
  Obligation (as determined by the Calculation Agent) does not exceed the
  amount (as determined by the Calculation Agent) that would be payable by
  Party A pursuant to Section 6 of the Agreement if such Conversion Date were
  an Early Termination Date resulting from an Additional Termination Event with
  respect to which the Transaction (except that, for purposes of determining
  such amount, the Number of Options shall be deemed to be equal to the number
  of Options exercised on the related Exercise Date) was the sole Affected
  Transaction and Party B was the sole Affected Party (determined without
  regard to “Alternative Calculations and Payment on Early Termination and on
  Certain Extraordinary Events” of this Confirmation) (the “Unwind Value”). For the avoidance of doubt,
  in the case of any exercise hereunder, if the “Daily Conversion Value” (as
  defined in the Indenture) for each of the “Settlement Period Trading Days”
  (as defined in the Indenture) occurring in the relevant “Conversion Period”
  is less than or equal to USD 50, Party A will have no delivery obligation
  hereunder in respect of the related Exercise Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The provisions
  of Sections 9.8, 9.9, 9.11 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 the Transaction means that Party A is obligated
  to deliver Shares (or cash for fractional Shares) hereunder.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 9.11 of
  the Equity Definitions shall be amended by deleting all text after “(other
  than a lien routinely imposed on all securities by the relevant Clearance
  System)” in the fourth line thereof.

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  In respect of an
  Exercise Date occurring on a Conversion Date, the settlement date for the
  Shares (or cash for fractional Shares) to be delivered under the related
  Convertible Notes under the terms of the Indenture; provided that the Settlement Date will
  not be prior to the Scheduled Trading Day immediately following the date on
  which Party B gives notice to Party A of such Settlement Date and the Settlement
  Obligation.

  
	
   

  	
   

  	
   

  
	
  Share Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Convertible
  Adjustment

  
	
   

  	
   

  	
   

  
	
  Convertible Adjustment:

  	
   

  	
  The Calculation
  Agent will adjust the Strike Price, the Number of Options, the Option
  Entitlement, the nature of the Shares and/or any other variable relevant to
  the exercise, valuation or settlement of the Transaction, as appropriate, to
  reflect any Conversion Change effected pursuant to the terms of the
  Indenture; provided that such adjustment
  shall not be made until Party A has received from Party B a notice of such
  Conversion Change.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Conversion Change” means any adjustment
  by Party B to the “Conversion Price” (as defined in the Indenture), the
  “Conversion

  

 

 4
 

 

	
  

  	
   

  	
  Rate” and/or the
  nature of the Shares under the Convertible Notes pursuant to the terms of the
  Indenture, other than a reduction in the “Conversion Price” or an increase in
  the “Conversion Rate” pursuant to Sections 10.04(b) or 10.05(i) of the
  Indenture or a change to the nature of the Shares as the result of Party B’s
  election under Section  10.13 of
  the Indenture in respect of a “Public Acquirer Change of Control.” Party B
  agrees that it will notify Party A prior to the effectiveness of any
  Conversion Change and, to the extent such Conversion Change requires an
  exercise of discretion by Party B under the terms of the Indenture, it shall
  consult with the Calculation Agent in order to achieve a commercially
  reasonable adjustment, determination or calculation.

  
	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Share-for-Share:

  	
   

  	
  Convertible Adjustment

  
	
   

  	
   

  	
   

  
	
  Share-for-Other:

  	
   

  	
  Convertible
  Adjustment

  
	
   

  	
   

  	
   

  
	
  Share-for-Combined:

  	
   

  	
  Convertible
  Adjustment

  
	
   

  	
   

  	
   

  
	
  Tender Offers:

  	
   

  	
  Convertible
  Adjustment

  
	
   

  	
   

  	
   

  
	
  Nationalization, Insolvency or Delisting:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination)

  
	
   

  	
   

  	
   

  
	
  Delisting:

  	
   

  	
  The definition
  of “Delisting” in Section 12.6 of the Equity Definitions shall be deleted in
  its entirety and replaced with the following: “‘Delisting’ means that the Exchange announces that pursuant
  to the rules of such Exchange, the Shares cease (or will cease) to be listed,
  traded or publicly quoted on the Exchange for any reason (other than a Merger
  Event or Tender Offer) and are not immediately re-listed, re-traded or
  re-quoted on 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 Termination Provision:

  	
   

  	
  If (i)
  Convertible Notes are repurchased or redeemed by Party B or its subsidiaries,
  or (ii) an “Event of Default” with respect to Party B under the terms of the
  Convertible Notes as set forth in Section 6.01 of the Indenture occurs, which
  results in principal and interest related to the Convertible Notes being
  declared immediately due and payable pursuant to the terms of the Indenture
  or (iii) an Amendment Event occurs, then in each case the Transaction shall
  terminate (in the case of clause (i) and (iii), such termination shall be in
  part, and shall reduce the Number of Options by the number of Convertible Notes
  so repurchased or redeemed or subject to the Amendment Event) as of the date
  of such repurchase, redemption, declaration or amendment. No additional
  payments or deliveries will be made under the terminated portion of the
  Transaction or, for greater certainty, in connection with such termination.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Amendment Event” means that Party B
  amends, modifies, supplements or obtains a waiver with respect to (i) any
  term of the

  

 

 5
 

 

	
  

  	
   

  	
  Indenture or the
  Convertible Notes governing the principal amount due at maturity, the
  maturity date, the amount of repurchase obligation of Party B, or other
  material term relating to conversion of the Convertible Notes (including any
  changes to the conversion price, conversion settlement dates or material
  conversion conditions), or (ii) any term that would require consent of the
  holders of not less than 100% of the principal amount of the Convertible Notes
  to amend, in each case without the written consent of Party A.

  
	
   

  	
   

  	
   

  
	
  Additional Termination Event:

  	
   

  	
  If, upon the
  occurrence of a “Public Acquirer Change of Control” under the Indenture
  occurs, Party B makes an election provided in Section 10.13 of the Indenture,
  an Additional Termination Event shall occur in respect of which (1) Party B
  shall be the sole Affected Party and (2) the Transaction shall be the sole
  Affected Transaction.

  
	
   

  	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change in Law:

  	
   

  	
  Applicable; provided that Section 12.9(a)(ii) of the
  Equity Definitions is hereby amended by replacing the phrase “the interpretation”
  in the third line thereof with the phrase “or public announcement of the
  formal or informal interpretation.”

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Insolvency Filing:

  	
   

  	
  If an Insolvency
  Filing occurs, either party may elect to terminate the Transaction upon at
  least two Scheduled Trading Days’ notice to the other party specifying the
  date of such termination, in which event the Transaction will terminate. No
  additional payments or deliveries will be made under the Transaction or, for
  greater certainty, in connection with such termination.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The definition
  of “Insolvency Filing” in Section 12.9 of the Equity Definitions shall be
  amended by deleting the clause “provided that proceedings instituted or
  petitions presented by creditors and not consented to by the Issuer shall not
  be deemed an Insolvency Filing” at the end of such definition and replacing
  it with the following: “; or it has instituted against it a proceeding
  seeking a judgment of insolvency or bankruptcy or any other relief under any
  bankruptcy or insolvency law or other similar law affecting creditors’ rights,
  or a petition is presented for its winding-up or liquidation by a creditor and
  such proceeding is not dismissed, discharged, stayed or restrained in each
  case within fifteen (15) days of the institution or presentation thereof.”

  
	
   

  	
   

  	
   

  
	
  Hedging Disruption:

  	
   

  	
  Applicable; provided that Section 12.9(a)(v) of the
  Equity Definitions is hereby amended by adding the phrase “for five or more
  successive Scheduled Trading Days” immediately following the word “efforts”
  in the second line thereof.

  
	
   

  	
   

  	
   

  
	
  Increased Cost of Hedging:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Party A shall be
  the Hedging Party for all Extraordinary Events.

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  Party A shall be
  the Determining Party for all Extraordinary Events.

  
	
   

  	
   

  	
   

  
	
  Acknowledgments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  

 

 6
 

 

	
  Agreements and
  Acknowledgments Regarding Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Representations, Warranties and Agreements of Party A and Party B:

  	
   

  	
  In addition to
  the representations, warranties and agreements set forth in the Agreement and
  elsewhere in this Confirmation, each of Party A and Party B further
  represents, warrants and agrees that, as of the date hereof:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) (i) It is
  not entering into the Transaction on behalf of or for the account of any
  other person or entity, and will not transfer or assign its rights or
  obligations under the Transaction or any portion of such obligations to any
  other person or entity except in compliance with applicable laws and the
  terms of the Transaction; (ii) it understands that the Transaction is subject
  to complex risks which may arise without warning, may at times be volatile,
  and that losses may occur quickly and in unanticipated magnitude; (iii) it is
  authorized to enter into the Transaction and such action does not violate any
  laws of its jurisdiction of organization or residence (including, but not
  limited to, any applicable position or exercise limits set by any self- regulatory
  organization, either acting alone or in concert with others)  or the terms of any agreement to which
  it is a party; (iv) it has consulted with its advisors and has reached its
  own conclusions about the Transaction, and any legal, regulatory, tax,
  accounting, economic or other consequences arising from the Transaction; and (v)
  it has concluded that the Transaction is suitable in light of its own
  investment objectives, financial capabilities and expertise.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) At all times
  until termination of the Transaction, it is an “eligible contract participant”
  as the term is defined in Section 1a(12) of the Commodity Exchange Act, as
  amended.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) It has not
  entered into any obligation that would contractually limit it from effecting
  settlement under the Transaction.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) It is an
  “accredited investor” as defined in Regulation D as promulgated under the
  Securities Act of 1933, as amended (the “Securities
  Act”).

  
	
   

  	
   

  	
   

  
	
  Additional
  Representations, Warranties and Agreements of Party B:

  	
   

  	
  In addition to
  the representations, warranties and agreements set forth in the Agreement and
  elsewhere in this Confirmation, Party B further represents, warrants and
  agrees that, as of the date hereof:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) Neither
  Party A nor any of its affiliates has advised it with respect to any legal,
  regulatory, tax, accounting, economic or other consequences arising from the
  Transaction, and neither Party A nor any of its affiliates is acting as agent
  (other than LBI as dual agent if specified above) or advisor for Party B in
  connection with the Transaction.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) Each of its
  required filings under all applicable securities laws have been filed and, as
  of the respective dates thereof, there is no misstatement of material fact
  contained therein or omission of a material fact required to be stated
  therein or necessary to make the statements therein not misleading.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) It is not in
  possession of any material non-public information concerning the business,
  operations or prospects of the Issuer and

  

 

 7
 

 

	
  

  	
   

  	
  was not in
  possession of any such information at the time of placing any order with
  respect to the Transaction. “Material” information for these purposes is any
  information to which an investor would reasonably attach importance in
  reaching a decision to buy, sell or hold Shares.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) The
  Transaction and any repurchase of Shares by Party B in connection with the
  Transaction has been approved by its board of directors and that any such
  repurchase has been publicly disclosed.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e) It is not
  entering into the Transaction to create actual or apparent trading activity
  in the Shares (or any security convertible into or exchangeable for Shares),
  to raise, depress or otherwise manipulate the price of the Shares (or any
  security convertible into or exchangeable for Shares) or to facilitate a
  distribution of Shares (or any security convertible into or exchangeable for
  Shares), or otherwise in violation of the Securities Exchange Act of 1934, as
  amended, including Regulation M thereunder.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f) It 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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (g) It is not on
  the Trade Date engaged in a distribution, as such term is used in Regulation
  M under the Securities Exchange Act of 1934, as amended, of any securities of
  Party B, other than a distribution meeting the requirements of the exception
  set forth in section 101(b)(10) of Regulation M.  Party B shall not, until the fifth Exchange
  Business Day immediately following the Trade Date, engage in any such
  distribution.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (h) Without
  limiting the generality of Section 13.1 of the Equity Definitions, it
  acknowledges that neither Party A nor its affiliates is making any
  representations or warranties with respect to the treatment of the
  Transaction under FASB Statement 133, as amended, or 150, EITF Issue No.
  00-19 (or any successor issue statement) or under FASB’s Liabilities &
  Equity Project.

  
	
   

  	
   

  	
   

  
	
  Other
  Provisions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Calculation Agent:

  	
   

  	
  LBI; provided that the definition of
  “Calculation Agent” in Section 1.40 of the Equity Definitions shall apply,
  and all determinations or calculations made by the Calculation Agent shall be
  made in good faith and in a commercially reasonable manner using consistent methodology
  with respect to the Transaction. In the event of a good faith error, and upon
  becoming aware of such error, the Calculation Agent shall promptly correct
  such error. Following any calculation by the Calculation Agent hereunder,
  promptly following the written request by Party B, the Calculation Agent will
  provide to Party B a written report describing in reasonable detail the basis
  for such calculation, including, upon the reasonable request of Party B, the material
  data and assumptions; provided  further that no transferee of the
  Transaction in accordance with the terms of this Confirmation shall act as
  the Calculation Agent with respect to such transferred Transaction without
  the prior written consent of Party B, which will not be unreasonably withheld
  or delayed.

  

 

 8
 

 

	
  Alternative Calculations and
  Payment on Early Termination and on Certain Extraordinary Events:

  	
   

  	
  If, in respect
  of the Transaction, an amount is payable by Party A to Party B, (i) pursuant
  to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except
  in the event of a Nationalization, Insolvency, Tender Offer or a Merger
  Event, in each case, in which the consideration to be paid to holders of
  Shares consists solely of cash) or (ii) pursuant to Section 6(d)(ii) of the
  Agreement (except in the event of an Event of Default in which Party B is the
  Defaulting Party or a Termination Event in which Party B is the Affected
  Party, in each case, that resulted from an event or events within Party B’s control)
  (a “Payment Obligation”), Party
  B shall have the right, in its sole discretion, to require Party A to
  satisfy any such Payment Obligation by the Share Termination Alternative (as
  defined below) by giving irrevocable telephonic notice to Party A, confirmed
  in writing within one Currency Business Day, no later than 4:00 p.m. New York
  City time on the Merger Date, Tender Offer Date, Announcement Date, Early
  Termination Date or date of cancellation or termination for an Additional
  Disruption Event, as applicable (“Notice of
  Share Termination”).  Upon
  Notice of Share Termination the following provisions shall apply:

  
	
   

  	
   

  	
   

  
	
  Share Termination Alternative:

  	
   

  	
  Applicable and
  means that Party A shall deliver to Party B the Share Termination Delivery
  Property on the date when the Payment Obligation would otherwise be due
  pursuant to Section 12.7 or 12.9 of the Equity Definitions or Section
  6(d)(ii) and 6(e) of the Agreement, as applicable, or such later date as the
  Calculation Agent may reasonably determine (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 to
  Party A 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 reasonably determined by the Calculation
  Agent.

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery Unit:

  	
   

  	
  In the case of a
  Termination Event, Event of Default, Delisting or Additional Disruption
  Event, one Share or, in the case of Nationalization, Insolvency, 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 Nationalization, Insolvency, Merger Event or Tender
  Offer, as reasonably determined by the Calculation Agent. If a Share
  Termination Delivery Unit consists of property other than cash or New Shares
  and if Party B provides irrevocable written notice to the Calculation Agent
  on or prior to the Merger Date that it elects to have Party A deliver cash,
  New Shares or a combination thereof (in such proportion as Party B
  designates) in lieu of such other property, the Calculation Agent will
  replace such property with cash, New Shares or a combination thereof as

  

 

 9
 

 

	
  

  	
   

  	
  components of a
  Share Termination Delivery Unit in such amounts, as reasonably determined by
  the Calculation Agent, as shall have a value equal to the value of the
  property so replaced.  If such Nationalization,
  Insolvency, 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.

  
	
   

  	
   

  	
   

  
	
  Other Applicable Provisions:

  	
   

  	
  If the
  Transaction is to be Share Termination Settled, the provisions of Sections
  9.8, 9.9, 9.11 and 9.12 (as modified above) of the Equity Definitions will be
  applicable, except that all references in such provisions to
  “Physically-settled” shall be read as references to “Share Termination
  Settled” and all references to “Shares” shall be read as references to “Share
  Termination Delivery Units”. “Share Termination Settled” in relation to the
  Transaction means that the Share Termination Alternative set forth above is
  applicable to the Transaction.

  
	
   

  	
   

  	
   

  
	
  Payments on Early Termination:

  	
   

  	
  Party A and
  Party B agree that for the Transaction, for the purposes of Section 6(e)
  of the Agreement, Loss and the Second Method will apply.

  
	
   

  	
   

  	
   

  
	
  No Set-Off or Netting:

  	
   

  	
  Obligations
  under this Transaction shall not be netted, recouped or set off (including
  pursuant to Section 6 of the Agreement) against any other obligations of the
  parties, whether arising under the Agreement, this Confirmation, under any
  other agreement between the parties hereto, by operation of law or otherwise,
  and no other obligations of the parties shall be netted, recouped or set off
  (including pursuant to Section 6 of the Agreement) against obligations under
  this Transaction, whether arising under the Agreement, this Confirmation,
  under any other agreement between the parties hereto, by operation of law or
  otherwise, and each party hereby waives any such right of setoff, netting or
  recoupment.

  
	
   

  	
   

  	
   

  
	
  Bankruptcy Code Acknowledgments:

  	
   

  	
  The parties agree
  and acknowledge that (i) this Confirmation is of a type set forth in Section
  561(a)(1)–(5) of the U.S. Bankruptcy Code (the “Bankruptcy Code”); (ii) Party A is a “master netting agreement
  participant,” a “financial institution,” a “financial participant,” a
  “forward contract merchant” and a “swap participant” as defined in the
  Bankruptcy Code; (iii) the remedies provided herein are the remedies referred
  to in Section 561(a), Sections 362(b)(6), (7), (17) and (27), and Section
  362(o) of the Bankruptcy Code; (iv) all transfers of cash, securities or
  other property under or in connection with this Confirmation are “transfers”
  made “by or to (or for the benefit of)” a “master netting agreement
  participant,” a “financial institution,” a “financial participant,” a
  “forward contract merchant” or a “swap participant” (each as defined in the Bankruptcy
  Code) within the meaning of Sections 546(e), (f), (g) or (j) of the
  Bankruptcy Code; and (v) all obligations under or in connection with this
  Confirmation represent obligations in respect of “termination values,”
  “payment amounts” or “other transfer obligations” within the meaning of
  Sections 362, 560 and 561 of the Bankruptcy Code.

  
	
   

  	
   

  	
   

  
	
  Early Unwind:

  	
   

  	
  In the event the
  sale of Convertible Notes is not consummated with the initial purchasers
  thereof for any reason, other than as a result of

  

 

 10
 

 

	
  

  	
   

  	
  a breach by
  Party A, by the close of business in New York on April 23, 2007 (or such
  later date as agreed upon by the parties) (April 23, 2007 or such later date
  as agreed upon being the “Early Unwind Date”),
  the Transaction shall automatically terminate (the “Early Unwind”), on the Early Unwind Date
  and (i) the Transaction and all of the respective rights and obligations of
  Party A and Party B under the Transaction shall be cancelled and terminated
  and (ii) each party shall be released and discharged by the other party from
  and agrees not to make any claim against the other party with respect to any obligations
  or liabilities of the other party arising out of and to be performed in
  connection with the Transaction either prior to or after the Early Unwind
  Date; provided that Party B
  shall purchase from Party A on the Early Unwind Date all Shares purchased by
  Party A or one or more of its affiliates in connection with hedging the Transaction
  or reimburse the costs and expenses (including market losses) relating to
  reselling those Shares to unwind its hedge positions, and will assume, or
  reimburse the cost of unwinding, any and all derivatives entered into by
  Party A or one or more of its affiliates in connection with hedging the
  Transaction. The purchase price paid by Party B shall be Party A’s actual
  cost of such Shares and derivatives as Party A informs Party B and shall be
  paid in immediately available funds on the Early Unwind Date. Party A and Party
  B represent and acknowledge to the other that, subject to the proviso
  included in the preceding sentence, upon an Early Unwind, all obligations
  with respect to the Transaction shall be deemed fully and finally discharged.

  
	
   

  	
   

  	
   

  
	
  Right to Extend:

  	
   

  	
  Party A may
  extend, for as long as it is reasonably necessary, any Settlement Date or any
  other date of delivery by Party A, with respect to some or all of the Options
  hereunder, if Party A reasonably and in good faith determines, upon the
  reasonable advice of counsel, that such extension is reasonably necessary to
  enable Party A to effect purchases of Shares in connection with the related settlement
  or delivery hereunder in a manner that would, if Party A were Party B or an
  affiliated purchaser of Party B, be in compliance with applicable legal and
  regulatory requirements.

  
	
   

  	
   

  	
   

  
	
  Repurchases Notices:

  	
   

  	
  Party B shall
  (i) on any day on which Party B effects any repurchase of Shares (other than
  a repurchase effected through Party A or its Affiliates), promptly give Party
  A a written notice of such repurchase (a “Third
  Party Repurchase Notice”) on such day if following such
  repurchase, the Options Equity Percentage as determined on such day is (i)
  greater than 8.0% and (ii) greater by 0.5% or more than the Options Equity
  Percentage included in the immediately preceding Third Party Repurchase
  Notice (or, in the case of the first such Third Party Repurchase Notice,
  greater than the Options Equity Percentage as of the date hereof) and (ii) on
  any day on which Party B effects any repurchase of Shares through Party A or
  its Affiliates, promptly give Party A a written notice of the number of
  Shares outstanding on such day (a “Party A
  Repurchase Notice”) if such number is lower by 0.5% or more than
  the number of outstanding Shares included in the immediately preceding Party
  A Repurchase Notice (or, in the case of the first such Party A Repurchase
  Notice, 182,420,466 Shares) reduced by the number of Shares repurchased
  through Party A or its Affiliates since the

  

 

 11
 

 

	
  

  	
   

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

  

 

 12
 

 

	
  Staggered
  Settlement:

  	
   

  	
  If Party A
  reasonably and in good faith determines that, pursuant to applicable legal
  and regulatory requirements or due to insufficient liquidity in the borrow
  market for the Shares, it would not be permitted or it would not be
  practicable or advisable to deliver, or to acquire Shares to deliver, any or
  all of the Shares to be delivered by Party A on the Settlement Date, Party A
  may, by notice to Party B prior to any Settlement Date (a “Nominal Settlement Date”), elect to
  deliver the Shares on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the
  Nominal Settlement Date as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) in such
  notice, Party A will specify to Party B the related Staggered Settlement
  Dates (each of which will be on or prior to such Nominal Settlement Date) or
  delivery times and how it will allocate the Shares it is required to deliver
  under “Settlement Obligation” (above) among the Staggered Settlement Dates or
  delivery times; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) the aggregate
  number of Shares that Party A will deliver to Party B hereunder on all such
  Staggered Settlement Dates and delivery times will equal the number of Shares
  that Party A would otherwise be required to deliver on such Nominal
  Settlement Date.

  
	
   

  	
   

  	
   

  
	
  Registration:

  	
   

  	
  Party B hereby
  agrees that if, in the good faith reasonable judgment of Party A, upon the
  reasonable advice of counsel, the Shares (“Hedge
  Shares”) acquired by Party A for the purpose of hedging its
  obligations pursuant to the Transaction cannot be sold in the public market
  by Party A without registration under the Securities Act, Party B shall, at
  its election, either (i) in order to allow Party A to sell the Hedge Shares
  in a registered offering, make available to Party A an effective registration
  statement under the Securities Act and enter into an agreement, in form and
  substance reasonably satisfactory to Party A, substantially in the form of an
  underwriting agreement; provided, however,
  that if Party A, in its judgment, upon the reasonable advice of counsel, is
  not satisfied with access to due diligence materials, the results of its due
  diligence investigation, or the procedures and documentation for the
  registered offering referred to above, then clause (ii) or clause (iii)
  of this section shall apply at the election of Party B, (ii) in order to
  allow Party A to sell the Hedge Shares in a private placement, enter into and
  comply with a private placement agreement substantially similar to private placement
  purchase agreements customary for private placements of equity securities, in
  form and substance reasonably satisfactory to Party A (in which case, the
  Calculation Agent shall make any adjustments to the terms of the Transaction
  that are necessary, in its reasonable judgment, to compensate Party A for any
  discount from the public market price of the Shares incurred on the sale of
  Hedge Shares in a private placement), or (iii) purchase the Hedge Shares from
  Party A at the VWAP Price on such Exchange Business Days, and in the amounts,
  requested by Party A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “VWAP Price” means, on any Exchange
  Business Day, the per Share volume-weighted average price as displayed on the
  Bloomberg Page “LWSN <Equity> AQR SEC” (or any successor thereto) in
  respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on
  such Exchange Business Day (or if such volume-

  

 

 13
 

 

	
  

  	
   

  	
  weighted average
  price is unavailable, the market value of one Share on such Exchange Business
  Day, as determined by the Calculation Agent using a volume-weighted method).

  
	
   

  	
   

  	
   

  
	
  Credit Support Document:

  	
   

  	
  Party A agrees
  to provide Party B on or promptly following the Trade Date of this
  Transaction a Guarantee by Lehman Brothers Holdings Inc. (“Guarantor”) of Party A’s obligations
  hereunder, with the Guarantee being a Credit Support Document and Guarantor being
  a Credit Support Provider with respect to Party A.

  
	
   

  	
   

  	
   

  
	
  Transfer:

  	
   

  	
  Notwithstanding
  Section 7 of the Agreement, Party A may assign its rights and obligations
  under the Transaction and under the Agreement, in whole and not in part, at
  any time to any Affiliate of Guarantor effective upon delivery to Party B of
  the full unconditional guarantee by the Guarantor, in favor of Party B, of
  the obligations of such Affiliate.

  
	
   

  	
   

  	
   

  
	
  Regulatory Provisions:

  	
   

  	
  (a) Party B represents
  and warrants that it has received and read and understands the Notice of
  Regulatory Treatment and the OTC Option Risk Disclosure Statement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Tax:

  	
   

  	
  Notwithstanding
  any other provision in this Confirmation, Party A hereby confirms that no
  participant in this transaction shall be limited from disclosing the U.S. tax
  treatment or U.S. tax structure of the transaction.

  
	
   

  	
   

  	
   

  
	
  Governing Law:

  	
   

  	
  The laws of the
  State of New York (without reference to choice of law doctrine).

  
	
   

  	
   

  	
   

  
	
  Termination Currency:

  	
   

  	
  USD.

  
	
   

  	
   

  	
   

  
	
  Office:

  	
   

  	
  For the purposes
  of the Transaction, Party A is not a Multibranch Party, and Party B is
  not a Multibranch Party.

  
	
   

  	
   

  	
   

  
	
  Waiver of Jury Trial:

  	
   

  	
  Each
  party waives, to the fullest extent permitted by applicable law, any right it
  may have to a trial by jury in respect of any suit, action or proceeding
  relating to the Transaction.  Each party
  (i) certifies that no representative, agent or attorney of the other party
  has represented, expressly or otherwise, that such other party would not, in
  the event of such a suit, action or proceeding, seek to enforce the foregoing
  waiver and (ii) acknowledges that it and the other party have been
  induced to enter into the Transaction, as applicable, by, among other things,
  the mutual waivers and certifications provided herein.

  

 

 14
 

 

THE SECURITIES REPRESENTED BY
THIS CONFIRMATION HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 OR ANY OTHER UNITED
STATES FEDERAL OR STATE SECURITIES LAWS; SUCH SECURITIES MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF APPROPRIATE REGISTRATION UNDER SUCH
SECURITIES LAWS OR EXCEPT IN A TRANSACTION EXEMPT FROM OR NOT SUBJECT TO THE
REGISTRATION REQUIREMENTS OF SUCH SECURITIES LAWS.

Please confirm your
agreement with the foregoing by executing this Confirmation and returning such
Confirmation, in its entirety, to us at facsimile number 646-885-9546 (United
States of America), Attention: Documentation.

	
  Yours sincerely,

  	
  Accepted and agreed to:

  
	
   

  	
   

  
	
  Lehman Brothers OTC Derivatives Inc.

  	
  Lawson Software, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Anatoly Kozlov

  	
   

  	
  By:

  	
     /s/
  Robert A. Schriesheim

  	
   

  
	
  Name:

  	
  Anatoly Kozlov

  	
  Name: 

  	
    Robert A.
  Schriesheim

  
	
  Title: 

  	
  Authorized Signatory

  	
  Title: 

  	
    EVP &
  CFO

  
								

 

Execution time will be
furnished upon Party B’s written request.

 

 15Exhibit
10.3

Execution Copy

 

Warrant Transaction

 

	
  Date:

  	
   

  	
  April 17, 2007

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Lawson Software, Inc.

  
	
   

  	
   

  	
  Attention:

  	
  Treasurer

  
	
   

  	
   

  	
  380 Saint Peter Street

  
	
   

  	
   

  	
  St. Paul, MN 55102

  
	
   

  	
   

  	
  Facsimile:

  	
  651-767-4868

  
	
   

  	
   

  	
  Telephone:

  	
  651-767-4920

  
	
   

  	
   

  	
  Email:

  	
  treasury@lawson.com

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  	
  General Counsel

  
	
   

  	
   

  	
  380 Saint Peter Street

  
	
   

  	
   

  	
  St. Paul, MN 55102

  
	
   

  	
   

  	
  Facsimile:

  	
  651-767-4827

  
	
   

  	
   

  	
  Telephone:

  	
  651-767-4940

  
	
   

  	
   

  	
  Email:

  	
  legal.americas@lawson.com

  
	
   

  	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Lehman Brothers Inc., acting as Agent

  
	
   

  	
   

  	
  Lehman Brothers OTC Derivatives Inc., acting as
  Principal

  
	
   

  	
   

  	
  Andrew Yare - Transaction Management Group

  
	
   

  	
   

  	
  Facsimile:

  	
  646-885-9546 (United States of America)

  
	
   

  	
   

  	
  Telephone:

  	
  212-526-9986

  
	
   

  	
   

  	
   

  	
   

  
	
  Ref. Numbers:

  	
   

  	
  Global Deal ID: 3003799

  

 

Dear Sir or Madam:

The purpose of this communication (this “Confirmation”) is to confirm the terms and
conditions of the transaction (the “Transaction”)
entered into between Lehman Brothers OTC Derivatives Inc. (“Party A”) and Lawson Software, Inc. (“Party B”) on the Trade Date specified
below.  This Confirmation constitutes a “Confirmation”
as referred to in the Agreement specified below. This Confirmation is sent on
behalf of both Party A and Lehman Brothers Inc. (“LBI”).  Lehman Brothers OTC Derivatives Inc. is not a member
of the Securities Investor Protection Corporation.

This Confirmation evidences a complete and binding
agreement between Party A and Party B as to the terms of the Transaction to
which this Confirmation relates.  This
Confirmation supplements, forms part of, and is subject to an agreement in the
form of the 1992 ISDA Master Agreement (Multicurrency—Cross Border) (the “Agreement”) as if we had executed an
agreement in such form (but without any Schedule except for the elections set
forth herein) on the Trade Date of the Transaction.  In the event of any inconsistency between the
provisions of the Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction.

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

Lehman Brothers

745
SEVENTH AVENUE,

NEW
YORK NY 10019

 1
 

Definitions, each reference herein to a Warrant shall
be deemed to be a reference to a Call Option or an Option, as the context
requires.

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

General Terms:

	
  Agent:

  	
   

  	
  LBI is acting as
  agent on behalf of Party A and Party B for the Transaction.  LBI has no obligations, by guarantee,
  endorsement or otherwise, with respect to the performance of the Transaction
  by either party.

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  April 17, 2007

  
	
   

  	
   

  	
   

  
	
  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:

  	
   

  	
  Party B

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Party A

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  The common stock
  of Party B, par value USD 0.01 per share (Ticker Symbol: LWSN).

  
	
   

  	
   

  	
   

  
	
  Number of Warrants:

  	
   

  	
  For each
  Component of the Transaction, as provided in Annex A to this Confirmation.
  For the avoidance of doubt, the Number of Options outstanding shall be
  reduced by each exercise or expiration of Options hereunder.

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  USD 15.575

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD
  34,176,000.00

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  Four Scheduled
  Trading Days after the Trade Date.

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  The NASDAQ
  Global Select Market of the Nasdaq Stock Market, Inc.

  
	
   

  	
   

  	
   

  
	
  Related Exchange(s):

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  The 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

  

 

Global Deal ID: 3003799

 2
 

 

	
  

  	
   

  	
  such date is a
  Disrupted Day or an Expiration Date in respect of any other Component for the
  Transaction) and the Settlement Price for the Final Disruption Date shall be
  determined by the Calculation Agent in a commercially reasonable manner.
  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.

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  Applicable with
  respect to the Warrants included in any Component; provided that Section 3.4(a) of the Equity Definitions
  shall apply to Cash Settlement and Net Share Settlement.

  
	
   

  	
   

  	
   

  
	
  Disrupted Day:

  	
   

  	
  The definition
  of “Disrupted Day” in Section 6.4 of the Equity Definitions shall be amended
  by adding the following sentence after the first sentence: “A Scheduled
  Trading Day on which a Related Exchange fails to open for trading during its
  regular trading session will not be a Disrupted Day if the Calculation Agent
  determines that such failure will not have a material impact on Party A’s
  ability to unwind any hedging transactions related to the Transaction.”

  
	
   

  	
   

  	
   

  
	
  Final Disruption Date:

  	
   

  	
  September 12,
  2012

  
	
   

  	
   

  	
   

  
	
  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, and by amending and restating clause (iii)
  thereof in its entirety to read as follows: “(iii) an Early Closure that the
  Calculation Agent determines is material.”

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  Settlement Method Election:

  	
   

  	
  Applicable; provided that the same Settlement Method
  shall apply to all Components; and provided
  further that references in the Equity Definitions to “Physical
  Settlement” shall be deemed to be references to “Net Share Settlement” as
  defined herein; and provided further
  that Party B may elect Cash Settlement only if at the time of such election
  it provides to Party A a written statement that the representations contained
  in paragraphs (e) and (g) of “Additional Representations, Warranties and Agreements
  of Party B:” below are true and correct as of and as if made on the date of
  such election.

  
	
   

  	
   

  	
   

  
	
  Electing Party:

  	
   

  	
  Party B

  
	
   

  	
   

  	
   

  
	
  Settlement Method Election Date:

  	
   

  	
  Five Scheduled
  Trading Days prior to, and including, the scheduled Expiration Date for the
  Component with the earliest scheduled Expiration Date.

  

 

 3
 

 

	
  Default Settlement Method:

  	
   

  	
  Net Share
  Settlement

  
	
   

  	
   

  	
   

  
	
  Settlement Price:

  	
   

  	
  For any
  Valuation Date, the volume weighted average price per Share for all Rule
  10b-18 eligible transactions on the Exchange in the Shares for such Valuation
  Date (without regard to pre-open or after hours trading outside of any
  regular trading session), as published by Bloomberg at 4:15 P.M. New York
  City time on such Valuation Date, or, in the event such price is not so
  reported on such Valuation Date for any reason, as reasonably determined by
  the Calculation Agent in good faith.

  
	
   

  	
   

  	
   

  
	
  Cash Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  On each Settlement
  Date, Party B will deliver to Party A the Net Share Amount for such
  Settlement Date (rounded down to the nearest whole Share) and will pay to
  Party A the Fractional Share Amount, if any, in respect of the Net Share
  Amount.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The provisions
  of Sections 9.8, 9.9, 9.11 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 the Transaction means that Net Share Settlement
  is applicable to the Transaction.

  
	
   

  	
   

  	
   

  
	
  Net Share Amount:

  	
   

  	
  The Option Cash
  Settlement Amount divided by
  the Settlement Price, each determined as if Cash Settlement applied.

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  The Settlement
  Date, determined as if Physical Settlement applied.

  
	
   

  	
   

  	
   

  
	
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dividend Adjustment:

  	
   

  	
  If at any time
  during the period from but excluding the Trade Date, to and including an
  Expiration Date an ex-dividend date for a cash dividend occurs with respect
  to the Shares, and that dividend, combined with any previous cash dividend
  for which the ex-dividend date occurs within the same regular quarterly
  dividend period of the Issuer, is more than the Regular Dividend on a per
  share basis, then the Calculation Agent will adjust the Strike Price, the
  Number of Warrants, the Warrant Entitlement, the Number of Shares or any
  other variable relevant to the exercise, settlement, payment or other terms
  of such Component to reflect the impact of such excess dividend on the
  theoretical value of such Component. “Regular
  Dividend” shall mean USD 0.00 per Share per quarter.

  
	
   

  	
   

  	
   

  
	
  Share Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation
  Agent Adjustment; provided that
  the Equity Definitions shall be amended by replacing the words “diluting or
  concentrative” in Sections 11.2(a), 11.2(c) (in two instances) and
  11.2(e)(vii) with the word “material” and by adding the words “or the
  Transactions” after the words “theoretical value of the relevant Shares” in Sections
  11.2(a),

  

 

 4
 

 

	
  

  	
   

  	
  11.2(c) and
  11.2(e)(vii); provided further
  that adjustments may be made to account for changes in volatility, expected
  dividends, stock loan rate and liquidity relative to the relevant Share or
  the Transaction.

  
	
   

  	
   

  	
   

  
	
  Extraordinary
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Tender Offer Date; Announcement Date:

  	
   

  	
  The definitions
  of “Tender Offer Date” and “Announcement Date” in Section 12.1 of the Equity
  Definitions will be amended by replacing the words “voting shares” in the
  first and fifth line thereof, respectively, with the word “Shares”.

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Share-for-Share:

  	
   

  	
  Modified
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Share-for-Other:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination)

  
	
   

  	
   

  	
   

  
	
  Share-for-Combined:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination)

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The definition
  of “Tender Offer” in Section 12.1 of the Equity Definitions will be amended
  by replacing the threshold of “10%” in the third line thereof with “an
  additional 20% (or such lower amount that would put such entity or person (or
  any group (within the meaning of Rule 13d-5 under the Securities Exchange Act
  of 1934, as amended) including such entity or person) over 50%)” and by
  replacing the phrase “outstanding voting shares of the Issuer” in the fourth
  line thereof with “outstanding Shares of the Issuer”.

  
	
   

  	
   

  	
   

  
	
  Consequences of Tender Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Share-for-Share:

  	
   

  	
  Modified
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Share-for-Other:

  	
   

  	
  Modified
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Share-for-Combined:

  	
   

  	
  Modified
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  New Shares:

  	
   

  	
  The definition
  of “New Shares” in Section 12.1 of the Equity Definitions shall be amended by
  deleting subsection (i) in its entirety and replacing it with the following:
  “(i) 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).”

  
	
   

  	
   

  	
   

  
	
  Modified Calculation Agent Adjustment:

  	
   

  	
  For greater
  certainty, the definition of “Modified Calculation Agent Adjustment” in
  Sections 12.2 and 12.3 of the Equity Definitions shall be amended by adding
  the following italicized language after the stipulated parenthetical
  provision: “(including adjustments to account for changes in volatility,
  expected dividends, stock loan rate or liquidity relevant to the Shares or to
  the Transaction) from the Announcement
  Date to the Merger Date (Section 12.2) or Tender Offer Date (Section 12.3).”

  
	
   

  	
   

  	
   

  
	
  Announcement Event:

  	
   

  	
  If an
  Announcement Event occurs, the Calculation Agent will determine  the economic effect of the Announcement
  Event on the theoretical value of each Component of the Transaction
  (including without limitation any change in volatility, expected dividends,
  stock loan rate or liquidity relevant to the Shares or to the Transaction)
  from the potential Announcement Date to the Expiration Date for such
  Component. If such economic effect is material, the Calculation Agent will
  adjust the terms of the Transaction to reflect such economic effect. “Announcement

  

 

 5
 

 

	
  

  	
   

  	
  Event”
  shall mean the occurrence of a potential Announcement Date of a Merger Event
  or Tender Offer.

  
	
   

  	
   

  	
   

  
	
  Nationalization, Insolvency or Delisting:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination)

  
	
   

  	
   

  	
   

  
	
  Delisting:

  	
   

  	
  The definition
  of “Delisting” in Section 12.6 of the Equity Definitions shall be deleted in
  its entirety and replaced with the following: “‘Delisting’ means that the
  Exchange announces that pursuant to the rules of such Exchange, the Shares
  cease (or will cease) to be listed, traded or publicly quoted on the Exchange
  for any reason (other than a Merger Event or Tender Offer) and are not
  immediately re-listed, re- traded or re-quoted on the New York Stock
  Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the
  NASDAQ Global Market (or their respective successors); if the Shares are immediately
  re-listed, re-traded or re-quoted on any such exchange or quotation system,
  such exchange or quotation system shall thereafter be deemed to be the
  Exchange.”

  
	
   

  	
   

  	
   

  
	
  Additional
  Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change in Law:

  	
   

  	
  Applicable; provided that Section 12.9(a)(ii) of the
  Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation”
  in the third line thereof with the phrase “or public announcement of the
  formal or informal interpretation” and (ii) immediately following the word “Transaction”
  in clause (X) thereof, adding the phrase “in the manner contemplated by the
  Hedging Party on the Trade Date.”

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The definition
  of “Insolvency Filing” in Section 12.9 of the Equity Definitions shall be
  amended by deleting the clause “provided that proceedings instituted or
  petitions presented by creditors and not consented to by the Issuer shall not
  be deemed an Insolvency Filing” at the end of such definition and replacing
  it with the following: “; or it has instituted against it a proceeding
  seeking a judgment of insolvency or bankruptcy or any other relief under any
  bankruptcy or insolvency law or other similar law affecting creditors’
  rights, or a petition is presented for its winding-up or liquidation by a
  creditor and such proceeding is not dismissed, discharged, stayed or
  restrained in each case within fifteen (15) days of the institution or
  presentation thereof.”

  
	
   

  	
   

  	
   

  
	
  Hedging Disruption:

  	
   

  	
  Applicable; provided that Section 12.9(a)(v) of the
  Equity Definitions is hereby amended by adding the phrase “for five or more
  successive Scheduled Trading Days” immediately following the word “efforts”
  in the second line thereof.

  
	
   

  	
   

  	
   

  
	
  Increased Cost of Hedging:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Loss of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section
  12.9(a)(vii) and Section 12.9(b)(iv) of the Equity Definitions are amended by
  deleting all references to “a rate equal to or less than the Maximum Stock
  Loan Rate” and replacing them with “a Stock Collateral Rate that is equal to
  or greater than the Minimum Stock Loan Rate.”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Stock Collateral Rate” means the rate of
  return on collateral posted in connection with any Shares borrowed in
  connection with the Transaction,

  

 

 6
 

 

	
  

  	
   

  	
  net of any costs
  or fees (including, for greater certainty, any lender’s borrow fees).

  
	
   

  	
   

  	
   

  
	
  Minimum Stock Loan Rate:

  	
   

  	
  Zero

  
	
   

  	
   

  	
   

  
	
  Increased Cost of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section
  12.9(a)(viii) of the Equity Definitions shall be deleted in its entirety and
  replaced with the following:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Increased Cost of Stock Borrow” means
  that the Hedging Party would earn a Stock Collateral Rate that is less than
  the Initial Stock Loan Rate. For greater certainty, the Stock Collateral Rate
  will be deemed to be less than the Initial Stock Loan Rate if the spread
  below the applicable floating rate increases above the spread specified in
  the definition of Initial Stock Loan Rate.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section
  12.9(b)(v) of the Equity Definitions is amended by deleting all references to
  “a rate equal to or less than the Initial Stock Loan Rate” and replacing them
  with “a Stock Collateral Rate that is equal to or greater than the Initial
  Stock Loan Rate”.

  
	
   

  	
   

  	
   

  
	
  Initial Stock Loan Rate:

  	
   

  	
  FED FUNDS minus
  25 basis points, as adjusted by the Calculation Agent to reflect any
  subsequent Price Adjustment due to an Increased Cost of Stock Borrow.

  
	
   

  	
   

  	
   

  
	
  FED FUNDS:

  	
   

  	
  “FED FUNDS” means USD-Federal Funds-H.15.

  
	
   

  	
   

  	
   

  
	
  Amendment to Section 12.9(b)(i) of Equity
  Definitions:

  	
   

  	
  Section
  12.9(b)(i) of the Equity Definitions is hereby amended by adding the
  following sentence at the end: “If neither party elects to terminate the Transaction,
  the Calculation Agent may adjust the terms of the Transaction upon the
  occurrence of such an event pursuant to Modified Calculation Agent Adjustment
  (as if such event were a Tender Offer).”

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Party A shall be
  the Hedging Party for all Extraordinary Events.

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  Party A shall be
  the Determining Party for all Extraordinary Events.

  
	
   

  	
   

  	
   

  
	
  Acknowledgments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and Acknowledgments Regarding Hedging
  Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Representations, Warranties and Agreements of Party A and Party B:

  	
   

  	
  In addition to
  the representations, warranties and agreements set forth in the Agreement and
  elsewhere in this Confirmation, each of Party A and Party B further
  represents, warrants and agrees that, as of the date hereof:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) (i) It is
  not entering into the Transaction on behalf of or for the account of any
  other person or entity, and will not transfer or assign its rights or
  obligations under the Transaction or any portion of such obligations to any
  other person or entity except in compliance with applicable laws and the
  terms of the Transaction; (ii) it understands that the Transaction is subject
  to complex risks which may arise without warning, may at times be volatile,
  and that losses may occur quickly and in unanticipated magnitude; (iii) it is
  authorized to enter into the Transaction and such action does not violate any
  laws of its jurisdiction of organization or residence (including, but not
  limited to, any applicable

  

 

 7
 

 

	
  

  	
   

  	
  position or
  exercise limits set by any self-regulatory organization, either acting alone
  or in concert with others) or the terms of any agreement to which it is a
  party; (iv) it has consulted with its advisors and has reached its own
  conclusions about the Transaction, and any legal, regulatory, tax, accounting,
  economic or other consequences arising from the Transaction; and (v) it has
  concluded that the Transaction is suitable in light of its own investment
  objectives, financial capabilities and expertise.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) At all times
  until termination of the Transaction, it is an “eligible contract
  participant” as the term is defined in Section 1a(12) of the Commodity
  Exchange Act, as amended.

  
	
   

  	
   

  	
   

  
	
  Additional
  Representations,  Warranties
  and Agreements of Party B:

  	
   

  	
  In addition to
  the representations, warranties and agreements set forth in the Agreement and
  elsewhere in this Confirmation, Party B further represents, warrants and
  agrees that, as of the date hereof:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) Any Shares,
  when delivered in accordance with the terms of the Transaction, will be duly
  authorized and validly issued, fully paid and nonassessable, and the issuance
  thereof will not be subject to any preemptive or similar rights.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) Neither
  Party A nor any of its affiliates has advised it with respect to any legal,
  regulatory, tax, accounting, economic or other consequences arising from the
  Transaction, and neither Party A nor any of its affiliates is acting as agent
  (other than LBI as dual agent if specified above) or advisor for Party B in
  connection with the Transaction.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) Each of its
  required filings under all applicable securities laws have been filed and, as
  of the respective dates thereof, there is no misstatement of material fact
  contained therein or omission of a material fact required to be stated
  therein or necessary to make the statements therein not misleading.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) It has not
  entered into any obligation that would contractually limit it from effecting
  Cash Settlement or Net Share Settlement under the Transaction.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e) It is not in
  possession of any material non-public information concerning the business,
  operations or prospects of the Issuer and was not in possession of any such
  information at the time of placing any order with respect to the
  Transaction.  “Material” information
  for these purposes is any information to which an investor would reasonably
  attach importance in reaching a decision to buy, sell or hold Shares.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f) It shall
  maintain a number of authorized but unissued Shares that are free from
  preemptive rights that at all times exceeds the sum of (x) two times the
  Maximum Share Delivery plus (y) the aggregate number of Shares
  expressly reserved for any other use (including, without limitation, shares
  reserved for issuance upon the exercise of options or convertible debt),
  whether expressed as caps or as numbers of Shares reserved or otherwise
  (clause (y), “Contingently Issuable Shares”)
  and, notwithstanding the provisions of Section 5(a)(ii) of the Agreement, in the
  event of a failure by Party B to comply with the agreement set forth in this
  clause (f), there shall be a grace period of the shorter of 90 calendar days
  and the time remaining until the earliest scheduled Expiration Date for
  remedy of such failure.

  

 

 8
 

 

	
  

  	
   

  	
  (g) It is not
  entering into the Transaction nor is it making an election hereunder to
  create actual or apparent trading activity in the Shares (or any security
  convertible into or exchangeable for Shares), to raise, depress or otherwise
  manipulate the price of the Shares (or any security convertible into or
  exchangeable for Shares) or to facilitate a distribution of Shares (or any
  security convertible into or exchangeable for Shares), or otherwise in
  violation of the Securities Exchange Act of 1934, as amended, including
  Regulation M thereunder.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (h) It 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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) Without
  limiting the generality of Section 13.1 of the Equity Definitions, it
  acknowledges that neither Party A nor its affiliates is making any
  representations or warranties with respect to the treatment of the
  Transaction under FASB Statement 133, as amended, or 150, EITF Issue No.
  00-19 (or any successor issue statement) or under FASB’s Liabilities &
  Equity Project.

  
	
  Other
  Provisions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Calculation Agent:

  	
   

  	
  LBI; provided that the definition of
  “Calculation Agent” in Section 1.40 of the Equity Definitions shall apply,
  and all determinations or calculations made by the Calculation Agent shall be
  made in good faith and in a commercially reasonable manner using consistent
  methodology with respect to the Transaction. In the event of a good faith
  error, and upon becoming aware of such error, the Calculation Agent shall
  promptly correct such error. Following any calculation by the Calculation
  Agent hereunder, promptly following the written request by Party B, the Calculation
  Agent will provide to Party B a written report describing in reasonable
  detail the basis for such calculation, including, upon the reasonable request
  of Party B, the material data and assumptions; provided  further
  that no transferee of the Transaction in accordance with the terms of this
  Confirmation shall act as the Calculation Agent with respect to such
  transferred Transaction without the prior written consent of Party B, which will
  not be unreasonably withheld or delayed.

  
	
   

  	
   

  	
   

  
	
  Alternative Calculations and Payment on Early
  Termination and on Certain Extraordinary Events:

  	
   

  	
  If, in respect
  of the Transaction, an amount is payable by Party B to Party A, (i) pursuant
  to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except
  in the event of a Nationalization, Insolvency, Tender Offer or a Merger
  Event, in each case, in which the consideration to be paid to holders of
  Shares consists solely of cash) or (ii) pursuant to Section 6(d)(ii) of the
  Agreement (except in the event of an Event of Default in which Party B is the
  Defaulting Party or a Termination Event in which Party B is the Affected
  Party, in each case, that resulted from an event or events within Party B’s
  control) (a “Payment Obligation”),
  Party B 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 Party A, confirmed in writing within one
  Currency Business Day, no later than 4:00 p.m. New York City time on the
  Merger Date, Tender Offer Date, Announcement Date, Early Termination Date or
  date of cancellation or termination for an Additional Disruption Event, as
  applicable (“Notice of Share Termination”).  Upon Notice of Share Termination the
  following provisions shall apply:

  

 

 9
 

 

	
  Share Termination
  Alternative:

  	
   

  	
  Applicable and
  means that Party B shall deliver to Party A the Share Termination Delivery
  Property on the date when the Payment Obligation would otherwise be due
  pursuant to Section 12.7 or 12.9 of the Equity Definitions or Section
  6(d)(ii) and 6(e) of the Agreement, as applicable, or such later date as the
  Calculation Agent may reasonably determine (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 to
  Party A 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 reasonably determined by the Calculation
  Agent.

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery Unit:

  	
   

  	
  In the case of a
  Termination Event, Event of Default, Delisting or Additional Disruption
  Event, one Share or, in the case of Nationalization, Insolvency, 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 Nationalization, Insolvency, Merger Event or
  Tender Offer, as reasonably determined by the Calculation Agent. If a Share
  Termination Delivery Unit consists of property other than cash or New Shares
  and if Party B provides irrevocable written notice to the Calculation Agent
  on or prior to the Merger Date that it elects to deliver cash, New Shares or
  a combination thereof (in such proportion as Party B designates) in lieu of such
  other property, the Calculation Agent will replace such property with cash,
  New Shares or a combination thereof as components of a Share Termination
  Delivery Unit in such amounts, as reasonably determined by the Calculation
  Agent, as shall have a value equal to the value of the property so replaced.
  If such Nationalization, Insolvency, 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.

  
	
   

  	
   

  	
   

  
	
  Other Applicable Provisions:

  	
   

  	
  If the
  Transaction is to be Share Termination Settled, the provisions of Sections
  9.8, 9.9, 9.11 and 9.12 (as modified above) of the Equity Definitions will be
  applicable, except that all references in such provisions to
  “Physically-settled” shall be read as references to “Share Termination
  Settled” and all references to “Shares” shall be read as references to “Share
  Termination Delivery Units”. “Share
  Termination Settled” in relation to the Transaction means that the
  Share Termination Alternative set forth above is applicable to the
  Transaction.

  
	
   

  	
   

  	
   

  
	
  Additional Termination Events:

  	
   

  	
  If at any time
  Party A reasonably and in good faith determines, upon the reasonable advice
  of counsel, that it is advisable to terminate a portion of the Transaction so
  that Party A’s related hedging activities will comply with applicable
  securities laws, rules or regulations, an Additional Termination Event shall
  occur in respect of which (1) Party B shall be the sole Affected Party and
  (2) the Transaction shall be the sole Affected

  

 

 10
 

 

	
  

  	
   

  	
  Transaction.

  
	
   

  	
   

  	
   

  
	
  Payments on Early Termination:

  	
   

  	
  Party A and
  Party B agree that for the Transaction, for the purposes of Section 6(e) of
  the Agreement, Loss and the Second Method will apply.

  
	
   

  	
   

  	
   

  
	
  Status of Claims in Bankruptcy:

  	
   

  	
  Party A 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 any U.S. bankruptcy proceedings of Party B; provided that nothing herein shall limit
  or shall be deemed to limit Party A’s right to pursue remedies in the event
  of a breach by Party B of its obligations and agreements with respect to the
  Transaction; and provided further
  that nothing herein shall limit or shall be deemed to limit Party A’s rights
  in respect of any transactions other than the Transaction.

  
	
   

  	
   

  	
   

  
	
  No Set-Off or Netting:

  	
   

  	
  Obligations
  under this Transaction shall not be netted, recouped or set off (including
  pursuant to Section 6 of the Agreement) against any other obligations of the
  parties, whether arising under the Agreement, this Confirmation, under any
  other agreement between the parties hereto, by operation of law or otherwise,
  and no other obligations of the parties shall be netted, recouped or set off
  (including pursuant to Section 6 of the Agreement) against obligations under
  this Transaction, whether arising under the Agreement, this Confirmation,
  under any other agreement between the parties hereto, by operation of law or
  otherwise, and each party hereby waives any such right of setoff, netting or
  recoupment.

  
	
   

  	
   

  	
   

  
	
  Bankruptcy Code Acknowledgments:

  	
   

  	
  The parties
  agree and acknowledge that (i) this Confirmation is of a type set forth in
  Section 561(a)(1)–(5) of the U.S. Bankruptcy Code (the “Bankruptcy Code”); (ii) Party A is a
  “master netting agreement participant,” a “financial institution,” a
  “financial participant,” a “forward contract merchant” and a “swap
  participant” as defined in the Bankruptcy Code; (iii) the remedies provided
  herein are the remedies referred to in Section 561(a), Sections 362(b)(6),
  (7), (17) and (27), and Section 362(o) of the Bankruptcy Code; (iv) all
  transfers of cash, securities or other property under or in connection with
  this Confirmation are “transfers” made “by or to (or for the benefit of)” a “master
  netting agreement participant,” a “financial institution,” a “financial
  participant,” a “forward contract merchant” or a “swap participant” (each as
  defined in the Bankruptcy Code) within the meaning of Sections 546(e), (f),
  (g) or (j) of the Bankruptcy Code; and (v) all obligations under or in
  connection with this Confirmation represent obligations in respect of
  “termination values,” “payment amounts” or “other transfer obligations”
  within the meaning of Sections 362, 560 and 561 of the Bankruptcy Code.

  
	
   

  	
   

  	
   

  
	
  Limit on Beneficial Ownership:

  	
   

  	
  Notwithstanding
  any other provisions hereof, Party A may not exercise any Warrant hereunder,
  Automatic Exercise shall not apply with respect thereto, and any delivery
  pursuant to “Alternative Calculations and Payment on Early Termination and on
  Certain Extraordinary Events” above shall not be made to the extent (but only
  to the extent) that the receipt of any Shares upon exercise or delivery would
  result in Lehman Brothers Holdings Inc. (“Holdings”)
  directly or indirectly beneficially owning (as such term is defined for
  purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended)
  at any time in excess of 9.0% of the outstanding Shares. Any purported
  delivery hereunder shall be void and have no effect to the extent (but only
  to the extent) that such delivery would result in Holdings directly or
  indirectly so beneficially owning in excess of 9.0% of the outstanding
  Shares. If any delivery owed

  

 

 11
 

 

	
  

  	
   

  	
  to Party A
  hereunder is not made, in whole or in part, as a result of this provision,
  Party B’s obligation to make such delivery and Party A’s right to exercise a
  Warrant shall not be extinguished and Party B shall make such delivery as
  promptly as practicable after, but in no event later than one Clearance
  System Business Day after, Party A gives notice to Party B that such exercise
  or delivery would not result in Holdings directly or indirectly so
  beneficially owning in excess of 9.0% of the outstanding Shares.

  
	
   

  	
   

  	
   

  
	
  Status of New Delivered Securities:

  	
   

  	
  If, in the
  reasonable judgment of Party A, upon the reasonable advice of counsel, any
  Shares or Share Termination Delivery Units, as the case may be (either, “Delivered  Securities”), deliverable to Party A hereunder would not be
  immediately freely transferable by Party A under Rule 144(k) under the
  Securities Act of 1933, as amended (the “Securities
  Act”), then the provisions set forth below shall apply:

   

  At the election
  of Party B, which election shall be in writing and shall be delivered to
  Party A no later than the date ten Scheduled Trading Days prior to the date
  such Delivered Securities are required to be delivered (if Party B makes no
  election by such date, Party B shall be deemed to have made the election
  described in clause (ii) below), either:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) All
  Delivered Securities, delivered by Party B to Party A shall be, at the time
  of such delivery, covered by an effective registration statement of the
  Issuer for immediate resale by Party A (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
  Party A); or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) Party B
  shall deliver Delivered Securities that are not so registered. If Party B
  makes the election described in clause (i) above:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) Party A (or
  an Affiliate of Party A designated by Party A) shall be afforded a reasonable
  opportunity to conduct a due diligence investigation with respect to the
  Issuer that is customary in scope for underwritten offerings of equity
  securities and that, if requested by Party A or such Affiliate, results in
  appropriate disclosure or other corrective action that is commercially
  reasonably satisfactory to Party A or such Affiliate, as the case may be; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) Party A (or
  an Affiliate of Party A designated by Party A) and the Issuer shall enter
  into an agreement (a “Registration
  Agreement”) on commercially reasonable terms in connection with
  the public resale of such Delivered Securities by Party A or such Affiliate
  substantially similar to underwriting agreements customary for underwritten
  offerings of equity securities, in form and substance commercially reasonably
  satisfactory to Party A or such Affiliate and the 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, Party
  A and its Affiliates and the Issuer, shall provide for the payment by the
  Issuer of all expenses in connection with such resale, including all
  registration costs and all fees and expenses of counsel for Party A, and
  shall provide for the delivery of accountants’ “comfort letters” to Party A
  or such Affiliate with respect to the financial statements and certain
  financial information contained in or incorporated

  

 

 12
 

 

	
  

  	
   

  	
  by reference
  into the Prospectus.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If Party B makes
  the election described in clause (ii) above:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) Party A (or
  an Affiliate of Party A designated by Party A) and any potential
  institutional purchaser of any such Delivered Securities from Party A or such
  Affiliate identified by Party A shall be afforded a commercially reasonable
  opportunity to conduct a due diligence investigation in compliance with
  applicable law with respect to the Issuer customary in scope for private
  placements of equity securities;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) Party A (or
  an Affiliate of Party A designated by Party A) and the 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 the Issuer to Party A
  or such Affiliate and the private resale of such shares by Party A 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 Party A and the Issuer, which Private Placement
  Agreement shall include, without limitation, provisions substantially similar
  to those contained in such private placement purchase agreements relating to
  the indemnification of, and contribution in connection with the liability of,
  Party A and its Affiliates and the Issuer, shall provide for the payment by
  the Issuer of all expenses in connection with such resale, including all fees
  and expenses of counsel for Party A, shall contain representations,
  warranties and agreements of the Issuer reasonably necessary or, based upon
  the reasonable advice of counsel, advisable to establish and maintain the
  availability of an exemption from the registration requirements of the
  Securities Act for such resales, and shall provide for the delivery of
  accountants’ “comfort letters” to Party A 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 Delivered Securities;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) Party B
  agrees that any Delivered Securities so delivered to Party A or its
  Affiliates, (i) unless otherwise prohibited by law, may be transferred by and
  among Party A and its Affiliates, and the Issuer shall effect such transfer
  without any further action by Party A and (ii) after the minimum “holding
  period” within the meaning of Rule 144(k) under the Securities Act has
  elapsed with respect to such Delivered Securities, Issuer shall promptly
  remove, or cause the transfer agent for such Delivered Securities to remove,
  any legends referring to any such restrictions or requirements from such
  Delivered Securities upon delivery by Party A (or such Affiliate of Party A)
  to Issuer or such transfer agent of seller’s and broker’s representation
  letters customarily delivered by Party A 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 Party A (or such
  Affiliate of Party

  

 

 13
 

 

	
  

  	
   

  	
  A); and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e) Party B
  shall be required to deliver an additional number of Delivered Securities so
  that the aggregate value of the 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 tradable upon receipt by
  Party A (the “Settlement Value”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (For the
  avoidance of doubt, as used in this section only, the term “Issuer” shall
  mean the issuer of the relevant securities, as the context shall require.)

  
	
   

  	
   

  	
   

  
	
  Make Whole Shares:

  	
   

  	
  If (x) Party B
  elects to deliver Share Termination Delivery Units pursuant to “Alternative
  Calculations and Payment on Early Termination and on Certain Extraordinary
  Events” above or (y) Party B makes the election described in clause (ii)
  under “Status of New Delivered Securities” above, then in either case Party A
  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 Party A 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
  amount of the Payment Obligation (in the case of clause (x), or in the case
  that both clause (x) and clause (y) apply) or the Settlement Value (in the
  case that only clause (y) applies) (such amount of the Payment Obligation or
  Settlement Value, as the case may be, the “Required
  Proceeds”). If any of such delivered Shares or Share Termination
  Delivery Units remain after such realized net proceeds exceed the Required
  Proceeds, Party A shall return such remaining Shares or Share Termination
  Delivery Units to Party B. If the Required Proceeds exceed the realized net
  proceeds from such resale, Party B shall transfer to Party A 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 or Share Termination Delivery
  Units, as the case may be (“Make-whole Shares”),
  in an amount that, based on the market value of such Make- whole Shares, as
  determined by the Calculation Agent, on the last day of the Resale Period,
  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. This provision shall be applied successively
  until the Additional Amount is equal to zero, subject to “Maximum Share
  Delivery” below.

  
	
   

  	
   

  	
   

  
	
  Maximum Share Delivery:

  	
   

  	
  Notwithstanding
  any provision of this Confirmation to the contrary, the number of Shares that
  may be delivered by Party B hereunder will be limited to the total Shares
  authorized but not outstanding, reduced by the total amount of Contingently
  Issuable Shares. In any event, the number of Shares that may be delivered by
  Party B hereunder shall not exceed two times the Number of Shares (as
  adjusted). If the number of Shares to be otherwise deliverable by Party B
  exceeds the limit in the preceding sentences, Party B will use its best
  efforts to obtain all necessary approvals to issue additional Shares to
  enable it to satisfy all obligations

  

 

 14
 

 

	
  

  	
   

  	
  hereunder.

  
	
   

  	
   

  	
   

  
	
  Transfer:

  	
   

  	
  Notwithstanding
  Section 7 of the Agreement, Party A may assign its rights and obligations
  under the Transaction and under the Agreement, in whole and not in part, at
  any time to any person or entity whatsoever without the consent of Party B.

  
	
   

  	
   

  	
   

  
	
  Regulatory Provisions:

  	
   

  	
  (a) Party B
  represents and warrants that it has received and read and understands the
  Notice of Regulatory Treatment and the OTC Option Risk Disclosure Statement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Tax:

  	
   

  	
  Notwithstanding
  any other provision in this Confirmation, Party A hereby confirms that no
  participant in this transaction shall be limited from disclosing the U.S. tax
  treatment or U.S. tax structure of the transaction.

  
	
   

  	
   

  	
   

  
	
  Governing Law:

  	
   

  	
  The laws of the
  State of New York (without reference to choice of law doctrine).

  
	
   

  	
   

  	
   

  
	
  Termination Currency:

  	
   

  	
  USD.

  
	
   

  	
   

  	
   

  
	
  Office:

  	
   

  	
  For the purposes
  of the Transaction, Party A is not a Multibranch Party, and Party B is not a
  Multibranch Party.

  
	
   

  	
   

  	
   

  
	
  Waiver of Jury Trial:

  	
   

  	
  Each
  party waives, to the fullest extent permitted by applicable law, any right it
  may have to a trial by jury in respect of any suit, action or proceeding
  relating to the Transaction. Each party (i) certifies that no representative,
  agent or attorney of the other party has represented, expressly or otherwise,
  that such other party would not, in the event of such a suit, action or
  proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that
  it and the other party have been induced to enter into the Transaction, as
  applicable, by, among other things, the mutual waivers and certifications
  provided herein.

  
	
   

  	
   

  	
   

  
	
  Conditions to Effectiveness:

  	
   

  	
  The Transaction
  shall not be effective unless (i) Party A shall have received a written
  opinion or written opinions of counsel, reasonably acceptable to Party A in
  form and substance, on or before the Trade Date, to the effect that:  (a) this Confirmation has been duly
  authorized, executed and delivered by Party B; (b) the performance by Party B
  of this Confirmation is within the corporate powers and authority of Party B,
  and has been duly authorized by all necessary corporate or other action; and
  (c) the execution, delivery and performance of this Confirmation by Party B
  do not contravene or constitute a default under any provision of the
  certificate of incorporation or bylaws of Party B; and (ii) the sale of the
  Convertible Notes is consummated by the close of business in New York on
  April 23, 2007 (or such later date as agreed upon by the parties) with the
  initial purchaser of the Convertible Notes. “Convertible Notes” means the 2.50% senior convertible notes
  due April 15, 2012 issued by Party B pursuant to an Indenture to be dated on
  or about April 23, 2007 between Party B and The Bank of New York, as trustee.

  

 

 15
 

THE SECURITIES REPRESENTED BY
THIS CONFIRMATION HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 OR ANY OTHER UNITED
STATES FEDERAL OR STATE SECURITIES LAWS; SUCH SECURITIES MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF APPROPRIATE REGISTRATION UNDER SUCH
SECURITIES LAWS OR EXCEPT IN A TRANSACTION EXEMPT FROM OR NOT SUBJECT TO THE REGISTRATION
REQUIREMENTS OF SUCH SECURITIES LAWS.

Please confirm your
agreement with the foregoing by executing this Confirmation and returning such
Confirmation, in its entirety, to us at facsimile number 646-885-9546 (United
States of America), Attention: Documentation.

	
  Yours sincerely,

  	
  Accepted and agreed to:

  
	
   

  	
   

  
	
  Lehman Brothers OTC Derivatives Inc.

  	
  Lawson Software, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Anatoly Kozlov

  	
   

  	
  By:

  	
  /s/ Robert A.
  Schriesheim

  	
   

  
	
  Name:

  	
  Anatoly Kozlov

  	
  Name: 

  	
  Robert A. Schriesheim

  
	
  Title: 

  	
  Authorized Signatory

  	
  Title: 

  	
  EVP & CFO

  
								

 

Execution time will be
furnished upon Party B’s written request.

 16

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