Document:

Exhibit 10.16

Exhibit 10.16

CONTRIBUTION AGREEMENT

This Contribution Agreement, dated as of March 7, 2011 (this “Agreement”), is made and entered
into by and between Hicks Acquisition Company II, Inc. (the “Company”) and William A. Montgomery
(the “Stockholder”).

RECITALS

WHEREAS, on October 14, 2010, the Company consummated an underwritten initial public offering
(the “Offering”) of 15,000,000 units (“Units”), each Unit consisting of one share of common stock,
par value $0.0001 per share (“Common Stock”), and one warrant to purchase one share of Common
Stock, pursuant to a registration statement on Form S-1 and a prospectus filed with the Securities
and Exchange Commission;

WHEREAS, in connection with the Offering, the Company also granted to the underwriters of the
Offering (the “Underwriters”) a 45-day option to purchase up to an additional 2,250,000 Units to
cover any over-allotments (the “Over-Allotment Option”);

WHEREAS, the Stockholder is the holder of 12,321 shares of Common Stock, which it acquired in
a private transaction prior to the consummation of the Offering (the “Founder Shares”), a portion
of which are subject to forfeiture in the event the sales price of the Common Stock does not
achieve certain performance benchmarks (the “Founder Earnout Shares”);

WHEREAS, as a condition to the closing of the Offering, up to 1,607 Founder Shares (which
includes up to 321 Founder Earnout Shares) are subject to forfeiture by the Stockholder if the
Underwriters do not exercise the Over-Allotment Option; and

WHEREAS, the Underwriters have notified the Company that they will not exercise the
Over-Allotment Option and, as a result, the Stockholder wishes to return to the Company for
cancellation 1,607 Founder Shares (which includes 321 Founder Earnout Shares).

STATEMENT OF AGREEMENT

NOW, THEREFORE, in consideration of the premises, representations, warranties and the mutual
covenants contained in this Agreement, and for other good and valuable consideration, the receipt,
sufficiency and adequacy of which are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

Section 1 Surrender of Founder Shares. The Stockholder hereby assigns and surrenders
to the Company for cancellation 1,607 Founder Shares (which includes 321 Founder Earnout Shares).
After giving effect to the cancellation of such shares, the Stockholder hereby acknowledges that it
holds 10,714 Founder Shares (which includes 2,143 Founder Earnout Shares).

 

 

 

Section 2 No Conflicts. Each party hereto represents and warrants that neither the
execution and delivery of this Agreement by such party, nor the consummation or performance by such
party of any of transactions contemplated hereby, will with or without notice or lapse of time,
constitute, create or result in a breach or violation of, default under, loss of benefit or right
under or acceleration of performance of any obligation required under any agreement to which
it is a party.

Section 3 Miscellaneous. This Agreement, together with the certificates, documents,
instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and
understanding of the parties hereto in respect of its subject matter. This Agreement may be
executed in two or more counterparts, each of which will be deemed an original but all of which
together will constitute one and the same instrument. This Agreement may not be amended, modified
or waived as to any particular provision, except by a written instrument executed by all parties
hereto. Except as otherwise provided herein, no party hereto may assign this Agreement or any of
its rights, interests, or obligations hereunder without the prior written consent of the other
party.

[SIGNATURE PAGE FOLLOWS]

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	STOCKHOLDER:	 	 
	 
	 	/s/ William A. Montgomery	 	 	 	 	 	 
	 	 	 	 	 
	 	 	William A. Montgomery	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HICKS ACQUISITION COMPANY II, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christina Weaver Vest	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christina Weaver Vest	 	 
	 

	 	 	 	Title:
	 	President, Chief Executive Officer and	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 

Signature Page to Contribution AgreementExhibit 10.17

Exhibit 10.17

CONTRIBUTION AGREEMENT

This Contribution Agreement, dated as of March 7, 2011 (this “Agreement”), is made and entered
into by and between Hicks Acquisition Company II, Inc. (the “Company”) and William F. Quinn (the
“Stockholder”).

RECITALS

WHEREAS, on October 14, 2010, the Company consummated an underwritten initial public offering
(the “Offering”) of 15,000,000 units (“Units”), each Unit consisting of one share of common stock,
par value $0.0001 per share (“Common Stock”), and one warrant to purchase one share of Common
Stock, pursuant to a registration statement on Form S-1 and a prospectus filed with the Securities
and Exchange Commission;

WHEREAS, in connection with the Offering, the Company also granted to the underwriters of the
Offering (the “Underwriters”) a 45-day option to purchase up to an additional 2,250,000 Units to
cover any over-allotments (the “Over-Allotment Option”);

WHEREAS, the Stockholder is the holder of 12,321 shares of Common Stock, which it acquired in
a private transaction prior to the consummation of the Offering (the “Founder Shares”), a portion
of which are subject to forfeiture in the event the sales price of the Common Stock does not
achieve certain performance benchmarks (the “Founder Earnout Shares”);

WHEREAS, as a condition to the closing of the Offering, up to 1,607 Founder Shares (which
includes up to 321 Founder Earnout Shares) are subject to forfeiture by the Stockholder if the
Underwriters do not exercise the Over-Allotment Option; and

WHEREAS, the Underwriters have notified the Company that they will not exercise the
Over-Allotment Option and, as a result, the Stockholder wishes to return to the Company for
cancellation 1,607 Founder Shares (which includes 321 Founder Earnout Shares).

STATEMENT OF AGREEMENT

NOW, THEREFORE, in consideration of the premises, representations, warranties and the mutual
covenants contained in this Agreement, and for other good and valuable consideration, the receipt,
sufficiency and adequacy of which are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

Section 1 Surrender of Founder Shares. The Stockholder hereby assigns and surrenders
to the Company for cancellation 1,607 Founder Shares (which includes 321 Founder Earnout Shares).
After giving effect to the cancellation of such shares, the Stockholder hereby acknowledges that it
holds 10,714 Founder Shares (which includes 2,143 Founder Earnout Shares).

 

 

 

Section 2 No Conflicts. Each party hereto represents and warrants that neither the
execution and delivery of this Agreement by such party, nor the consummation or performance by such
party of any of transactions contemplated hereby, will with or without notice or lapse of time,
constitute, create or result in a breach or violation of, default under, loss of benefit or right
under or acceleration of performance of any obligation required under any agreement to which
it is a party.

Section 3 Miscellaneous. This Agreement, together with the certificates, documents,
instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and
understanding of the parties hereto in respect of its subject matter. This Agreement may be
executed in two or more counterparts, each of which will be deemed an original but all of which
together will constitute one and the same instrument. This Agreement may not be amended, modified
or waived as to any particular provision, except by a written instrument executed by all parties
hereto. Except as otherwise provided herein, no party hereto may assign this Agreement or any of
its rights, interests, or obligations hereunder without the prior written consent of the other
party.

[SIGNATURE PAGE FOLLOWS]

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	STOCKHOLDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	/s/ William F. Quinn	 	 
	 	 	 	 	 
	 	 	William F. Quinn	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HICKS ACQUISITION COMPANY II, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Christina Weaver Vest	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christina Weaver Vest	 	 
	 

	 	 	 	Title:
	 	President, Chief Executive Officer and
Chief Financial Officer	 	 

Signature Page to Contribution Agreementexv10w1

Exhibit 10.1

Explanatory Note: “***” indicates the portion of this exhibit that has been omitted and separately filed with

the Securities and Exchange Commission pursuant to a request for confidential treatment.

Barclays Bank PLC

5 The North Colonnade

Canary Wharf, London E14 4BB

Facsimile:+44(20)77736461

Telephone: +44 (20) 777 36810

c/o Barclays Capital Inc.

as Agent for Barclays Bank PLC

745 Seventh Ave

New York, NY 10019

	 	 	 

	DATE:

	 	March 11, 2011
	 
	 	 
	TO:

	 	Reinsurance Group of America, Incorporated
	 
	 	 
	Attention:

	 	Todd C. Larson
	Address:

	 	1370 Timberlake Manor Parkway
	 

	 	Chesterfield, Missouri 63017-6039
	Facsimile:

	 	(636) 736-7762
	Telephone:

	 	(636) 300-8838
	Email:

	 	TLarson@rgare.com
	 
	 	 
	FROM:

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

	 	+1 212 412 4000
	 
	 	 
	SUBJECT:

	 	Amended and Restated Share Repurchase Transaction

          The
purpose of this letter agreement (this
“Confirmation”) is to amend and restate the terms and
conditions of the Transaction entered into between Barclays Bank PLC (“Barclays”), through its
agent Barclays Capital Inc. (the “Agent”), and Reinsurance Group of America, Incorporated
(“Counterparty”) on the Trade Date specified below (the “Transaction”). This Confirmation
constitutes a “Confirmation” as referred to in the Master Agreement specified below. Barclays Bank
PLC is not a member of the Securities Investor Protection Corporation (“SIPC”). Barclays is
regulated by the Financial Services Authority. This Confirmation
amends, restates and replaces in its entirety the
“Confirmation”, dated as of
March 7, 2011, between Barclays and Counterparty related to the Transaction. 

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. For purposes of the Equity Definitions, this Transaction
shall be deemed to be a Share Forward Transaction.

Each party is hereby advised, and each such party acknowledges, that the other party has engaged
in, or refrained from engaging in, substantial financial transactions and has taken other material
actions in reliance upon the parties’ entry into the Transaction to which this Confirmation relates
on the terms and conditions set forth below.

1. This Confirmation evidences a complete and binding agreement between Barclays and Counterparty
as to the terms of the Transaction to which this Confirmation relates. Until and unless Barclays
and Counterparty negotiate, execute and deliver an agreement in the form of an ISDA Master
Agreement, with such modifications as Barclays and Counterparty will in good faith agree, this
Confirmation shall supplement, form a part of, and be subject to, an agreement in the form of the
ISDA 1992 Master Agreement (Multicurrency — Cross Border) (the “Agreement”) as if Barclays and
Counterparty had executed an agreement in such form (without any Schedule except for (i) the
election of Loss and Second Method, New York law (without regard to the conflicts of law
principles) as the governing law and US Dollars (“USD”) as the Termination Currency, (ii) the
election that subparagraph (ii) of Section 2(c) will not apply to this Transaction, and (iii) the
replacement of clause (1) in Section 6(d)(i) with the clause “(1) showing in reasonable detail such
calculations and specifying any amount payable under Section 6(e) (including, without limitation,
providing all relevant quotations and assumptions and specifying the

 

 

methodologies used)” and with such other elections set forth in this Confirmation) on the Trade
Date. The parties hereby agree that no Transaction other than the Transaction to which this
Confirmation relates shall be governed by the Agreement.

     If, in relation to this Confirmation, there is any inconsistency between the Agreement, this
Confirmation and the Equity Definitions that are incorporated into this Confirmation, the following
will prevail for purposes of such Transaction in the order of precedence indicated: (i) this
Confirmation; (ii) the Equity Definitions; and (iii) the Agreement.

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

General Terms:

	 	 	 

	Trade Date:

	 	As specified in Schedule A
	 
	 	 
	Amendment
Effective Date:

	 	March 11, 2011
	 
	 	 
	Seller:

	 	Barclays
	 
	 	 
	Buyer:

	 	Counterparty
	 
	 	 
	Shares:

	 	The Common Stock, USD 0.01 par value per share of
Counterparty (Ticker symbol “RGA”).
	 
	 	 
	Prepayment:

	 	Not Applicable
	 
	 	 
	Variable Obligation

	 	Not Applicable
	 
	 	 
	Number of Shares:

	 	As specified in Schedule A
	 
	 	 
	Initial Share Purchase:

	 	On the Initial Purchase Settlement Date, Barclays shall
deliver to Counterparty the Number of Shares and
Counterparty will pay to Barclays an amount equal to the
product of the Number of Shares multiplied by the Initial
Purchase Price (the “Initial Share Purchase Amount”).
	 
	 	 
	Initial Purchase Price:

	 	As specified in Schedule A
	 
	 	 
	Initial Purchase Settlement Date:

	 	One Exchange Business Day following the Trade Date.
	 
	 	 
	Additional Payment:

	 	Counterparty shall pay to Barclays an amount equal to the
Additional Payment as specified in Schedule A on the
Exchange Business Day following the Trade Date.
	 
	 	 
	Exchange:

	 	The New York Stock Exchange
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Calculation Agent:

	 	Barclays, whose determinations and calculations in its
capacity as Calculation Agent, as well as any
determinations or calculations by Barclays in any other
capacity, pursuant to this Confirmation, the Agreement
and the Equity Definitions shall be made in good faith
and in a commercially reasonable manner, including,
without limitation, with respect to calculations and
determinations that are made in its sole discretion or
otherwise. In the event the Calculation Agent or
Barclays makes any calculations or determinations
pursuant to this Confirmation, the Agreement or the
Equity Definitions, the Calculation Agent or Barclays
shall promptly provide an explanation in reasonable
detail of the basis for and determination of any
determinations or calculations if requested by
Counterparty.

2

 

	 	 	 

	Valuation:
	 	 
	 
	 	 
	Trading Period:

	 	The period of consecutive Scheduled Trading Days from and
including the first Scheduled Trading Day following the
Trade Date to and including the Maximum Maturity Date, as
specified in Schedule A; provided that, Barclays may
designate any Scheduled Trading Day on or after the
Minimum Maturity Date, as specified in Schedule A, as the
last Scheduled Trading Day of the Trading Period;
provided further that, if by the scheduled expiration of
the Trading Period Barclays has not repurchased the
Number of Shares, the Trading Period shall be extended
until the Exchange Business Day on which Barclays has
completed the repurchase of the Number of Shares.
Barclays shall notify Counterparty of any designation
made pursuant to this provision on the Scheduled Trading
Day immediately following such designated day.
	 
	 	 
	Market Disruption Event:

	 	The definition of “Market Disruption Event” in Section
6.3(a) of the Equity Definitions is hereby amended by
inserting the words “at any time on any Scheduled Trading
Day during the Trading Period or” after the word
“material,” in the third line thereof.
	 
	 	 
	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
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
Barclays’s ability to unwind any hedging transactions
related to the Transaction.”
	 
	 	 
	Consequence of Disrupted Days:

	 	Notwithstanding anything to the contrary in the Equity
Definitions, to the extent that a Disrupted Day occurs
during the Trading Period, the Calculation Agent may
postpone the Maximum Maturity Date and/or the Minimum
Maturity Date by a number of days not exceeding the
number of Disrupted Days in whole during the originally
contemplated Trading Period. If any Disrupted Day occurs
during the Trading Period, the Calculation Agent shall
determine whether (i) such Disrupted Day is a Disrupted
Day in whole, in which case the 10b-18 VWAP for such
Disrupted Day shall not be included for purposes of
determining the Forward Price, or (ii) such Disrupted Day
is a Disrupted Day only in part, in which case the 10b-18
VWAP for such Disrupted Day shall be determined by the
Calculation Agent based on Rule 10b-18 eligible
transactions in the Shares on such Disrupted Day effected
before the relevant Market Disruption Event (if any)
occurred and/or after the relevant Market Disruption
Event (if any) ended. Any day on which the Exchange is
scheduled to close prior to its normal closing time shall
be considered a Disrupted Day in whole.
	 
	 	 
	Valuation Time:

	 	Scheduled Closing Time; provided that if the principal
trading session is extended, the Calculation Agent shall
determine the Valuation Time in its reasonable
discretion.
	 
	 	 
	Valuation Date:

	 	The last Scheduled Trading Day during the Trading Period.

3

 

	 	 	 

	Settlement Terms:
	 	 
	 
	 	 
	Settlement Method Election:

	 	Applicable; provided that references in the Equity
Definitions to “Physical Settlement” shall be deemed to
be references to “Net Share Settlement” as defined
herein; provided, further, that Counterparty may elect
Cash Settlement only to the extent that at the time of
the election it provides to Barclays the representation
contained in paragraph 5(p) below.
	 
	 	 
	Electing Party:

	 	Counterparty
	 
	 	 
	Settlement Method Election Date:

	 	Two Scheduled Trading Days immediately following the
Valuation Date, or such other date as agreed by the
parties.
	 
	 	 
	Default Settlement Method:

	 	Net Share Settlement
	 
	 	 
	Cash Settlement Terms:
	 	 
	 
	 	 
	Cash Settlement:

	 	If Cash Settlement is Applicable:
	 
	 	 
	 

	 	(i) if the Forward Cash Settlement Amount is a positive
number, then Barclays shall pay to Counterparty the
Forward Cash Settlement Amount on the Cash Settlement
Payment Date; and
	 
	 	 
	 

	 	(i) if the Forward Cash Settlement Amount is a negative
number, then Counterparty shall pay to Barclays the
absolute value of the Forward Cash Settlement Amount on
the Cash Settlement Payment Date.
	 
	 	 
	Settlement Currency:

	 	USD.
	 
	 	 
	Settlement Price:

	 	The amount equal to the arithmetic average of the
Adjusted 10b-18 VWAPs for all Exchange Business Days in
the Trading Period (the “Average Adjusted 10b-18 VWAP”).
	 
	 	 
	10b-18 VWAP:

	 	(A) For any Scheduled Trading Day that is not a Disrupted
Day, the volume-weighted average price at which the
Shares trade as reported in the composite transactions
for all United States securities exchanges on which such
Shares are traded (or, if applicable, any successor
Exchange), excluding (i) trades that do not settle
regular way, (ii) opening (regular way) reported trades
in the consolidated system on such Scheduled Trading Day,
(iii) trades that occur in the last ten minutes before
the scheduled close of trading on the Exchange on such
Scheduled Trading Day and ten minutes before the
scheduled close of the primary trading in the market
where the trade is effected, and (iv) trades on such
Scheduled Trading Day that do not satisfy the
requirements of Rule 10b-18(b)(3) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), as
determined in good faith by the Calculation Agent, or (B)
for any Scheduled Trading Day that is a Disrupted Day, an
amount determined in good faith and in a commercially
reasonable manner by the Calculation Agent as 10b-18 VWAP
pursuant to “Consequence of Disrupted Days” above.
Counterparty acknowledges that the Calculation Agent may
refer to the Bloomberg Page “RGA <Equity> AQR SEC”
(or any successor thereto) for any Scheduled Trading Day
to determine the 10b-18 VWAP.
	 
	 	 
	Adjusted 10b-18 VWAP:

	 	The amount equal to the difference between (i) 10b-18
VWAP minus (ii) the Discount, as specified in Schedule A.
	 
	 	 
	Forward Cash Settlement Amount:

	 	Notwithstanding anything contained in Section 8.5 of the
Equity Definitions, the Forward Cash Settlement Amount,
as determined by the Calculation Agent, shall be equal to
the difference between (a) the Initial Share Purchase
Amount minus (b) the product of (i) the Number of Shares
multiplied by (ii) the Settlement Price.
	 
	 	 
	Cash Settlement Payment Date:

	 	Three Currency Business Days immediately following the
Valuation Date.

4

 

	 	 	 

	Net Share Settlement Terms:
	 	 
	 
	 	 
	Net Share Settlement:

	 	If Counterparty elects Net Share Settlement under the
Settlement Method Election and the Forward Cash
Settlement Amount is (i) a positive number, “Net Share
Settlement by Barclays” below shall apply, or (ii) a
negative number, “Net Share Settlement by Counterparty”
below shall apply. For the avoidance of doubt, any Shares
delivered hereunder shall be free and clear of any lien,
charge, claim or encumbrance.
	 
	 	 
	Net Share Settlement By Barclays:

	 	On a day that is three Scheduled Trading Days after the
completion of the Net Share Settlement Period (the
“Refund Share Settlement Date”) Barclays shall deliver a
number of Shares to Counterparty (the “Refund Shares”)
equal to the Forward Cash Settlement Amount divided by
the volume weighted average price at which Barclays
purchased the Refund Shares. No fractional Shares shall
be delivered in connection with Net Share Settlement by
Barclays, and the value of any fractional Share otherwise
deliverable shall be paid in cash to Counterparty on the
Refund Share Settlement Date (such value to be determined
by multiplying such fractional Share by the volume
weighted average price at which Barclays purchased the
Refund Shares.
	 
	 	 
	Net Share Settlement Period:

	 	The period during which Barclays makes purchases of the
Refund Shares, commencing on the Net Share Settlement
Date and ending on the Scheduled Trading Day on which
Barclays completes its purchases of the Refund Shares.
	 
	 	 
	Net Share Settlement Price:

	 	The closing price per Share as quoted by the Exchange at
the Valuation Time on the Valuation Date.
	 
	 	 
	Net Share Settlement Date:

	 	Four Scheduled Trading Days immediately following the
Valuation Date, or such other date as agreed between the
parties.
	 
	 	 
	Net Share Settlement by Counterparty:

	 	Counterparty shall deliver an initial number of Shares on
the Net Share Settlement Date as determined by the
following formula (the “Net Settlement Shares”):
	 

	 	 s 
	 

	 	p
	 
	 	 
	 

	 	Where,

s = the absolute value of the Forward Cash Settlement
Amount; and
	 

	 	p = the Net Share Settlement Price
	 
	 	 
	 

	 	provided, however, that if the Net Settlement Shares (and
any Make-Whole Shares) are not Registered Securities or
if the parties have not satisfied the conditions and
obligations described in paragraph 5(i), p shall be the
price determined by Barclays in a commercially reasonable
manner. No fractional Shares shall be delivered in
connection with Net Share Settlement by Counterparty, and
the value of any fractional Share otherwise deliverable
shall be rounded up to the nearest whole Share.
	 
	 	 
	 

	 	Counterparty has the right to elect that the Net
Settlement Shares (and any Make-Whole Shares, as such
term is defined below) shall be (i) Registered Securities
as further described below in paragraph 5(i), or (ii)
unregistered Shares (“Restricted Shares”).

5

 

	 	 	 

	 

	 	On the Valuation Date a balance (the “Settlement
Balance”) shall be established with an initial balance
equal to the absolute value of the Forward Cash
Settlement Amount. Following the sale of the Net
Settlement Shares by Barclays, the Settlement Balance
shall be reduced by an amount equal to the aggregate
proceeds (net of any brokerage and underwriting
commissions and fees, including any customary private
placement fees) received by Barclays upon the sale of the
Net Settlement Shares. If following the sale of some but
not all of the Net Settlement Shares the Settlement
Balance has been reduced to zero, no additional Net
Settlement Shares shall be sold by Barclays and Barclays
shall redeliver to Counterparty any remaining Net
Settlement Shares. If following the sale of the Net
Settlement Shares the Settlement Balance has not been
reduced to zero, then Counterparty shall (i) promptly
deliver to Barclays an additional number of Shares (the
“Make-Whole Shares”) equal to (x) the Settlement Balance
as of such date divided by (y) the closing price per
Share on the Exchange, as determined by the Calculation
Agent, on the Exchange Business Day immediately preceding
the date such Shares are delivered, or, if the Make-Whole
Shares are not Registered Securities or if the parties
have not entered into an Underwriting Agreement with
respect to such Make-Whole Shares, the price determined
by Barclays in a commercially reasonable manner (the
“Make-Whole Price”) or (ii) at the option of
counterparty, promptly deliver to Barclays cash in an
amount equal to the then remaining Settlement Balance.
This provision shall be applied successively until the
Settlement Balance is reduced to zero.
	 
	 	 
	Adjustments:
	 	 
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment; provided that the Equity
Definitions shall be amended by (i) deleting Section
11.2(e)(iii) and (ii) 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 “economic” and
by adding the words “or the Transaction” after the words
“theoretical value of the relevant Shares” in Section
11.2(a), 11.2(c) and 11.2(e)(vii).
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	New Shares:

	 	Section 12.1(i) of the Equity Definitions is hereby
amended by deleting the text in clause (i) in its
entirety and replacing it with the phrase “publicly
quoted, traded or listed on any of the New York Stock
Exchange, the NASDAQ Global Select Market or the NASDAQ
Global Market (or their respective successors)”.
	 
	 	 
	Share-for-Share:

	 	The definition of “Share-for-Share” set forth in Section
12.1(f) of the Equity Definitions is hereby amended by
the deletion of the parenthetical in clause (i) thereof.
	 
	 	 
	Cancellation and Payment (Calculation
Agent Determination):

	 	Section 12.7(b) of the Equity Definitions shall be
amended by inserting the words “or a Share Forward
Transaction” after the words “Option Transaction” in the
first line thereof, and Section 12.7(c) of the Equity
Definitions shall not apply.

6

 

	 	 	 

	Consequence 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); provided that Barclays may elect
Component Adjustment.
	 
	 	 
	Consequence of Tender Offers:
	 	 
	 
	 	 
	Tender Offer:

	 	Applicable; provided that the number “10” in the third
line of Section 12.1(d) shall be replaced with the number
“20.”
	 
	 	 
	Share-for-Share:

	 	Modified Calculation Agent Adjustment.
	 
	 	 
	Share-for-Other:

	 	Modified Calculation Agent Adjustment.
	 
	 	 
	Share-for-Combined:

	 	Modified Calculation Agent Adjustment.
	 
	 	 
	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 (i) 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 or the
Determination Date, as applicable, to the Merger Date
(Section 12.2) or Tender Offer Date (Section 12.3).” and
(ii) deleting the phrase “expected dividends,” from such
stipulated parenthetical provision.
	 
	 	 
	Announcement Date:

	 	The definition of “Announcement Date” in Section 12.1 of
the Equity Definitions shall be amended by (i) replacing
the word “leads to the” in the third and the fifth lines
thereof with the words “, if completed, would lead to a”,
(ii) replacing the words “voting shares” in the fifth
line thereof with the word “Shares”, and (iii) inserting
the words “by any entity” after the word “announcement”
in the second and the fourth lines thereof.
	 
	 	 
	Announcement Event:

	 	If an Announcement Event has occurred, the Calculation
Agent shall have the right to determine the economic
effect of the Announcement Event on the theoretical value
of this Transaction (including without limitation any
change in volatility, stock loan rate or liquidity
relevant to the Shares or to this Transaction) (i) at a
time that it deems appropriate, from the Announcement
Date to the date of such determination (the
“Determination Date”), and (ii) on the Valuation Date,
from the Announcement Date or the Determination Date, as
applicable, to the Valuation Date. If any such economic
effect is material, the Calculation Agent will adjust the
terms of this Transaction to reflect such economic
effect. “Announcement Event” shall mean the occurrence
of the Announcement Date of a Merger Event or Tender
Offer.
	 
	 	 
	Composition of Combined Consideration:

	 	Not Applicable; provided that, notwithstanding Sections
12.5(b) and 12.1(f) of the Equity Definitions, to the
extent that the composition of the consideration for the
relevant Shares pursuant to a Tender Offer or Merger
Event could be elected by an actual holder of the Shares,
the Calculation Agent will, in its sole discretion,
determine such composition.
	 
	 	 
	Nationalization, Insolvency or Delisting:

	 	Negotiated Close-out, provided that if the parties are
unable to agree, after negotiating in good faith, on
mutually acceptable terms with which to terminate the
Transaction on or prior to the date on which the relevant
Shares cease to trade on the Exchange,

7

 

	 	 	 

	 

	 	Cancellation and
Payment (Calculation Agent Determination) shall apply;
provided, further, that, in addition to the provisions of
Section 12.6(a)(iii) of the Equity Definitions, it will
also constitute a Delisting if the Exchange is located in
the United States and the Shares are not immediately
re-listed, re-traded or re-quoted on any of the New York
Stock Exchange, the 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 Barclays on the
Trade Date” and (iii) Section 12.9(a)(ii)(Y) of the
Equity Definitions is hereby deleted.
	 
	 	 
	Failure to Deliver:

	 	Not Applicable.
	 
	 	 
	Insolvency Filing:

	 	Applicable; provided that 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 thirty (30) days of the
institution or presentation thereof, in which event the
Insolvency Filing shall be deemed to occur on such
thirtieth day.”
	 
	 	 
	Hedging Disruption:

	 	Not Applicable.
	 
	 	 
	Increased Cost of Hedging:

	 	Not Applicable.
	 
	 	 
	Loss of Stock Borrow:

	 	Applicable; provided that (a) Sections 12.9(a)(vii) and
12.9(b)(iv) of the Equity Definitions are amended by
deleting the words “at a rate equal to or less than the
Maximum Stock Loan Rate” and replacing it with the words
“at a Borrow Cost or the economic equivalent equal to or
less than the Maximum Stock Loan Rate” , (b) Section
12.9(a)(vii) of the Equity Definitions is hereby amended
by inserting the words “or use commercially reasonable
efforts to attempt to enter into an economically
equivalent transaction” after the first occurrence of the
word “Shares”.
	 
	 	 
	 

	 	For purposes of Section 12.9 of the Equity Definitions,
all references to “Hedging Shares” shall be deemed to be
references to Barclays’s short position in respect of the
Transaction.

8

 

	 	 	 

	Borrow Cost:

	 	The cost to borrow the relevant Shares that would be
incurred by a third party market participant borrowing
such Shares, as determined by the Calculation Agent on
the relevant date of determination. Such costs shall
include (a) the spread below FED-FUNDS that would be
earned on collateral posted in connection with such
borrowed Shares, net of any costs or fees, and (b) any
stock loan borrow fee that would be payable for such
Shares, expressed as fixed rate per annum.
	 
	 	 
	Maximum Stock Loan Rate:

	 	*** basis points.
	 
	 	 
	Increased Cost of Stock Borrow:

	 	Applicable; provided that (a) Section 12.9(a)(viii) of
the Equity Definitions shall be amended by deleting “rate
to borrow Shares” and replacing it with “Borrow Cost” and
(b) Section 12.9(b)(v) of the Equity Definitions shall be
amended by (i) adding the word “or” immediately before
the phrase “(B)”, (ii) deleting subsection (C) in its
entirety, (iii) replacing “either party” in the
penultimate sentence with “the Hedging Party”, and (iv)
replacing the word “rate” in clauses (X) and (Y) of the
final sentence therein with the words “Borrow Cost”.
	 
	 	 
	Initial Stock Loan Rate:

	 	*** 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, for any day, the rate set forth for
such day opposite the caption “Federal funds”, as such
rate is displayed on the page “FedsOpen <Index>
<GO>” on the BLOOMBERG Professional Service, or any
successor page; provided that if no rate appears for any
day on such page, the rate for the immediately preceding
day for which a rate does so appear shall be used for
such day.
	 
	 	 
	Hedging Party:

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

	 	Barclays for all applicable Extraordinary Events.
	 
	 	 
	Acknowledgments:
	 	 
	 
	 	 
	Non-Reliance:

	 	Applicable.
	 
	 	 
	Agreements and Acknowledgments Regarding
Hedging Activities:

	 	Applicable.
	 
	 	 
	Additional Acknowledgments:

	 	Applicable.

3. Mutual Representations, Warranties and Agreements.

Each of
Barclays and Counterparty represents and warrants to, and agrees
with, the other party, as of the Trade Date and as of the Amendment
Effective Date,
that:

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

 

			

	[***]

	 	Redacted text. Confidential treatment requested; omitted text filed separately with the Securities and Exchange Commission.

9

 

	 	 	 	Title I of ERISA, and (2) do not constitute “plan assets” within the meaning of
Department of Labor Regulation 2510.3-101, 29 CFR Section 2510-3-101;
	 
	 	(d)	 	Compliance with Laws. It has not and will not directly or indirectly
violate any applicable law (including, without limitation, the Securities Act and the
Exchange Act) in connection with the Transaction;
	 
	 	(e)	 	Material Non-public Information Policy. It has implemented reasonable
policies and procedures, taking into consideration the nature of its business, to
ensure that individuals making investment decisions would not violate laws
prohibiting trading on the basis of material non-public information; and
	 
	 	(f)	 	No Manipulation. It is not entering into the Transaction for the purpose
of (i) creating actual or apparent trading activity in the Shares (or any security
convertible into or exchangeable for the Shares) or (ii) raising or depressing or
otherwise manipulating the price of the Shares (or any security convertible into or
exchangeable for the Shares) or otherwise in violation of the Exchange Act.

4. Representations, Warranties and Agreements of Counterparty.

In addition to the representations and warranties in the Agreement and those contained elsewhere
herein, Counterparty further represents, warrants and agrees, as of
the Trade Date and as of the Amendment Effective Date, that:

	 	(a)	 	If Counterparty purchases any Shares pursuant to this Transaction, such
purchase(s) will comply with (i) all laws and regulations applicable to it and (ii)
all contractual obligations of Counterparty;
	 
	 	(b)	 	Counterparty shall as promptly as practicable provide written notice to
Barclays upon obtaining knowledge of the occurrence of any event that would
constitute an Event of Default, a Potential Event of Default, a Potential Adjustment
Event, a Merger Event or any other Extraordinary Event; provided, however, that
should Counterparty be in possession of material non-public information regarding
Counterparty, Counterparty shall not communicate such information to Barclays;
	 
	 	(c)	 	(A) Counterparty is acting for its own account, and it has made its own
independent decisions to enter into the Transaction and as to whether the Transaction
is appropriate or proper for it based upon its own judgment and upon advice from such
advisers as it has deemed necessary, (B) Counterparty is not relying on any
communication (written or oral) of Barclays or any of its affiliates as investment
advice or as a recommendation to enter into the Transaction (it being understood that
information and explanations related to the terms and conditions of the Transaction
shall not be considered investment advice or a recommendation to enter into the
Transaction) and (C) no communication (written or oral) received from Barclays or any
of its affiliates shall be deemed to be an assurance or guarantee as to the expected
results of the Transaction;
	 
	 	(d)	 	[Reserved]
	 
	 	(e)	 	Counterparty has (and shall at all times during the Transaction have) the
capacity and authority to invest directly in the Number of Shares underlying the
Transaction and has not entered into the Transaction with the intent to avoid any
regulatory filings;
	 
	 	(f)	 	Counterparty’s financial condition is such that it has no need for
liquidity with respect to its investment in the Transaction and no need to dispose of
any portion thereof to satisfy any existing or contemplated undertaking or
indebtedness;
	 
	 	(g)	 	Counterparty’s investments in and liabilities in respect of the
Transaction, which it understands are not readily marketable, are not
disproportionate to its net worth, and Counterparty is able to bear any loss in
connection with the Transaction, including the loss of its entire investment in the
Transaction;
	 
	 	(h)	 	Counterparty is not as of the Trade Date, and shall not be after giving
effect to the transactions contemplated hereby, “insolvent” (as such term is defined
in Section 101(32) of the U.S.

10

 

	 	 	 	Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and
Counterparty would be able to purchase a number of Shares equal to the Number of
Shares in compliance with the laws of the jurisdiction of Counterparty’s
incorporation or organization;
	 
	 	(i)	 	Counterparty has publicly announced its intent to enter in to a Share
repurchase program, and the Transaction, and any repurchase of the Shares by
Counterparty in connection with the Transaction, has been approved by Counterparty’s
board of directors (including engaging in related derivative transactions) and any
such repurchase has been, or shall when so required be, publicly disclosed in its
periodic filings under the Exchange Act and its financial statements and notes
thereto;
	 
	 	(j)	 	Counterparty understands, agrees and acknowledges that Barclays has no
obligation or intention to register the Transaction under the Securities Act, any
state securities law or other applicable federal securities law;
	 
	 	(k)	 	each of Counterparty’s filings under the Securities Act, the Exchange Act,
or other applicable securities laws that are required to be filed have been filed and
that, as of the respective dates thereof and as of the date of this representation,
such filings when considered as a whole (with the more recent such filings deemed to
amend inconsistent statements contained in any earlier such filings) do not contain
any misstatement of a material fact or any omission of a material fact required to be
stated therein or necessary to make the statements made therein, in the light of the
circumstances under which they were made, not misleading;
	 
	 	(l)	 	Counterparty is not, and after giving effect to the transactions
contemplated hereby will not be, required to register as an “investment company” as
such term is defined in the Investment Company Act of 1940, as amended;
	 
	 	(m)	 	Counterparty understands, agrees and acknowledges that no obligations of
Barclays to it hereunder shall be entitled to the benefit of deposit insurance and
that such obligations shall not be guaranteed by any affiliate of Barclays or any
governmental agency; and
	 
	 	(n)	 	without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Barclays is not making any representations or
warranties with respect to the treatment of the Transaction under FASB Statements
128, 133, as amended, 149 or 150, EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any
successor issue statements), under FASB’s Liabilities & Equity Project or under FASB
Staff Position or any other accounting guidance.

5. Other Provisions:

	 	(a)	 	Method of Delivery. Whenever delivery of funds or other assets is required
hereunder by or to Counterparty, such delivery shall be effected through Agent. In
addition, all notices, demands and communications of any kind relating to the
Transaction between Barclays and Counterparty shall be transmitted exclusively
through Agent.
	 
	 	(b)	 	Rule 10b-18.

	 	(i)	 	During the Net Share Settlement Period, if any, and with
respect to any purchases executed as a result of an occurrence of an Additional
Termination Event, Barclays agrees to use commercially reasonable efforts to
make all purchases of Shares in a manner that would comply with the limitations
set forth in clauses (b)(1), (b)(2), (b)(3), (b)(4) and (c) of Rule 10b-18
under the Securities Exchange Act of 1934 (“Rule 10b-18”), as if such rule was
applicable to such purchases.
	 
	 	(ii)	 	Except as disclosed to Barclays in writing prior to the Trade
Date, Counterparty represents and warrants to Barclays that it has not made any
purchases of blocks by or for itself or any of its Affiliated Purchasers
pursuant to the one block purchase per week exception in Rule 10b-18(b)(4)
under the Exchange Act during each of the four calendar weeks preceding such
date (“Rule 10b-18 purchase,” “blocks” and “Affiliated Purchaser” each as
defined in Rule 10b-18).

11

 

	 	(iii)	 	Counterparty agrees that it (A) will not, on any day during
the Trading Period and the Net Share Settlement Period, if any, make, or permit
to be made, any public announcement (as defined in Rule 165(f) under the
Securities Act) of any Merger Transaction or potential Merger Transaction
unless such public announcement is made prior to the opening or after the close
of the regular trading session on the Exchange for the Shares; (B) shall
promptly (but in any event prior to the next opening of the regular trading
session on the Exchange) notify Barclays following any such announcement that
such announcement has been made; and (C) shall promptly (but in any event prior
to the next opening of the regular trading session on the Exchange) provide
Barclays with written notice specifying (i) Counterparty’s average daily Rule
10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar
months immediately preceding the announcement date that were not effected
through Barclays or its affiliates and (ii) the number of Shares purchased
pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the
three full calendar months preceding the announcement date. Such written notice
shall be deemed to be a certification by Counterparty to Barclays that such
information is true and correct. In addition, Counterparty shall promptly
notify Barclays of the earlier to occur of the completion of such transaction
and the completion of the vote by target shareholders. “Merger Transaction”
means any merger, acquisition or similar transaction involving a
recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange
Act.

	 	(c)	 	Rule 10b5-1. It is the intent of the parties that this Transaction comply
with the requirements of Rule 10b5-1(c)(1)(i)(B) of the Exchange Act (“Rule 10b5-1”),
and the parties agree that this Confirmation shall be interpreted to comply with the
requirements of Rule 10b5-1(c), and Counterparty shall take no action that results in
this Transaction not so complying with such requirements. Without limiting the
generality of the preceding sentence, Counterparty acknowledges and agrees that (A)
Counterparty does not have, and shall not attempt to exercise, any influence over
how, when or whether Barclays effects any purchases in connection with this
Transaction, (B) during the Trading Period and the Net Share Settlement Period , if
any, (x) neither Counterparty nor its officers or employees shall, directly or
indirectly, communicate any information regarding Counterparty or the Shares to any
employee of Barclays or its affiliates who is directly involved with the hedging of
and trading with respect to this Transaction and (y) no employee of Barclays or its
affiliates who is directly involved with the hedging of and trading with respect to
this Transaction shall, directly or indirectly, communicate any information regarding
the Transaction or the Shares to Counterparty or its officers or employees, (C)
Counterparty is entering into this Transaction in good faith and not as part of a
plan or scheme to evade compliance with federal securities laws including, without
limitation, Rule 10b-5 and (D) Counterparty will not alter or deviate from this
Confirmation or enter into or alter a corresponding hedging transaction with respect
to the Shares. Counterparty also acknowledges and agrees that any amendment,
modification, waiver or termination of this Confirmation must be effected in
accordance with the requirements for the amendment or termination of a “plan” as
defined in Rule 10b5-1(c). Without limiting the generality of the foregoing, any such
amendment, modification, waiver or termination shall be made in good faith and not as
part of a plan or scheme to evade the prohibitions of Rule 10b-5 and no such
amendment, modification or waiver shall be made at any time at which Counterparty or
any officer or director of Counterparty is aware of any material non-public
information regarding Counterparty or the Shares.
	 
	 	(d)	 	Company Purchases. Without the prior written consent of Barclays and
except for purchases which are not solicited by or on behalf of Counterparty, its
affiliates or affiliated purchasers (each as defined in Rule 10b-18 of the Exchange
Act) or purchases executed by Barclays or an Affiliate of Barclays, Counterparty
shall not purchase, and shall cause its affiliates or affiliated purchasers not to
directly or indirectly (including, without limitation, by means of any cash-settled
or other derivative instrument) purchase, offer to purchase, place any bid or limit
order that would effect a purchase of, or commence any tender offer relating to, any
Shares (or an equivalent interest, including a unit of beneficial interest in a trust
or limited partnership or a

12

 

	 	 	 	depository share) or any security convertible into or exchangeable or exercisable
for Shares during the Trading Period and the Net Share Settlement Period, if any.
	 
	 	(e)	 	Regulation M. Counterparty is not on the date hereof, engaged in a
distribution, as such term is used in Regulation M under the Exchange Act, of any
securities of Counterparty, other than a distribution meeting the requirements of the
exception set forth in Section 102(b)(7) of Regulation M under the Exchange Act.
Counterparty shall not, until the Settlement Date or Cash Settlement Payment Date, as
applicable, engage in any such distribution.
	 
	 	(f)	 	Additional Termination Event. Notwithstanding any other provision hereof,
an “Additional Termination Event” shall occur and Counterparty shall be the sole
Affected Party pursuant to such Additional Termination Event if on any day occurring
after the Trade Date and on or prior to the last Scheduled Trading Day in the Trading
Period Counterparty declares a distribution, issue or dividend to existing holders of
the Shares with an ex-dividend date on or prior to the Valuation Date of (i) an
extraordinary cash dividend, (ii) a regular quarterly dividend in an amount greater
than the Regular Dividend as specified in Schedule A, (iii) securities or share
capital of another issuer acquired or owned (directly or indirectly) by Counterparty
as a result of a spin-off or other similar transaction or (iv) any other type of
securities (other than Shares, which may constitute a Potential Adjustment Event),
rights or warrants or other assets, in any case for payment (cash or other
consideration) at less than the prevailing market price as determined by Barclays.
	 
	 	(g)	 	Additional Adjustment Event. If on any day, occurring after the Trade Date
and on or prior to the last Scheduled Trading Day in the Trading Period, Counterparty
declares a distribution, issue or dividend to existing holders of the Shares with an
ex-dividend date on or prior to the Valuation Date that is earlier than the expected
ex-dividend date specified in Schedule A, the Calculation Agent shall make such
adjustments to the exercise, settlement, payment or any other terms of the
Transaction as the Calculation Agent determines appropriate to account for the
economic effect on the Transaction of such event.
	 
	 	(h)	 	[Reserved]
	 
	 	(i)	 	Conditions to Delivery of Payment Settlement Shares. If Counterparty
elects or is deemed to elect for Net Share Settlement by Counterparty to apply in
accordance to this Agreement, Counterparty may only deliver the Shares subject to
satisfaction of the following conditions:

	 	(i)	 	If Counterparty timely elects to deliver Net Settlement Shares
or Make-Whole Shares (the “Settlement Shares”) by means of a registered
offering, the following provisions shall apply:

(1) On the later of (A) the Trading Day following Counterparty’s election to
deliver Shares by means of a registered offering (the “Registration Notice
Date”), and (B) the date on which the Registration Statement becomes
effective (the “Registered Share Delivery Date”), Counterparty shall deliver
to Barclays the Net Settlement Shares on the Trading Day immediately prior
to the applicable Registered Share Delivery Date. For the avoidance of
doubt, the Registered Share Delivery Date shall be deemed to be the
Settlement Date if this paragraph shall apply.

(2) Promptly following the Registration Notice Date, Counterparty shall file
with the Securities and Exchange Commission a registration statement
(“Registration Statement”) covering the public resale by Barclays of the Net
Settlement Shares or Make-Whole Shares (collectively, the “Registered
Securities”) on a continuous or delayed basis pursuant to Rule 415 (or any
similar or successor rule), if available, under the Securities Act; provided
that no such filing shall be required pursuant to this paragraph (ii) if
Counterparty shall have filed a similar registration statement with unused
capacity at least equal to the Settlement Amount and such registration
statement has become effective on or prior to the Registration Notice Date
and no stop order is in effect

13

 

with respect to such registration statement as of the Registration Notice
Date. Counterparty shall use its reasonable best efforts to have such
Registration Statement become effective as promptly as possible. Barclays
shall provide, by a reasonable time in advance, such information regarding
Barclays and its affiliates as shall be required or reasonably requested by
Counterparty in the Registration Statement or Prospectus.

(3) Promptly following the Registration Notice Date, and provided that
Barclays shall execute and deliver an appropriate confidentiality agreement
that is reasonably satisfactory to Counterparty, Counterparty shall afford
Barclays a reasonable opportunity to conduct a due diligence investigation
with respect to Counterparty customary in scope for underwritten offerings
of equity securities (including, without limitation, the availability of
senior management to respond to questions regarding the business and
financial condition of Counterparty and the right to have made available to
Barclays for inspection all financial and other records, pertinent corporate
documents and other information reasonably requested by Barclays), and
Barclays shall be reasonably satisfied in all material respects with the
results of such due diligence investigation of Counterparty. For the
avoidance of doubt, Counterparty shall not have the right to deliver Shares
pursuant to sub-paragraph (1) above (and the conditions to delivery of Net
Settlement Shares specified in this paragraph shall not be satisfied) until
Barclays is satisfied in all material respects with the results of such due
diligence investigation of Counterparty.

(4) From the effectiveness of the Registration Statement until all
Registered Securities have been sold by Barclays (but in no event, for more
than two years from the date of this Confirmation), Counterparty shall, at
the request of Barclays, make available to Barclays a printed prospectus
relating to the Registered Securities in form and substance (including,
without limitation, any sections describing the plan of distribution)
reasonably satisfactory to Barclays (a “Prospectus”, which term shall
include any prospectus supplement thereto), in such quantities as Barclays
shall reasonably request.

(5) Counterparty shall use its reasonable best efforts to prevent the
issuance of any stop order suspending the effectiveness of the Registration
Statement or of any order preventing or suspending the use of any Prospectus
and, if any such order is issued, to obtain the lifting thereof as soon
thereafter as is possible. If Counterparty concludes that the Registration
Statement, the Prospectus or any document incorporated therein by reference
contains a misstatement of a material fact or omits to state a material fact
required to be stated therein or necessary to make any statement therein not
misleading, Counterparty shall as promptly as practicable file any required
document and prepare and furnish to Barclays a reasonable number of copies
of such supplement or amendment thereto as may be necessary so that the
Prospectus, as thereafter delivered to the purchasers of the Registered
Securities will not contain a misstatement of a material fact or omit to
state a material fact required to be stated therein or necessary to make any
statement therein not misleading; provided, that Counterparty may suspend
the effectiveness of the Registration Statement and use of the Prospectus by
written notice to Barclays for such periods as it deems necessary or
appropriate, in its good faith judgment (each such period, a “Suspension
Period”) if an event occurs and is continuing as a result of which the
Registration Statement may, in Counterparty’s good faith judgment, contain
an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein
not misleading, or if the board of directors of Counterparty determines in
good faith that a Suspension Period is in the best interests of
Counterparty.

(6) On or prior to the Registered Share Delivery Date, Counterparty shall
enter into an agreement (a “Transfer Agreement”) with Barclays (or any
affiliate of Barclays

14

 

designated by Barclays) in connection with the public
resale of the Registered Securities,
substantially similar to underwriting agreements customary for underwritten
offerings of equity securities, in form and substance reasonably
satisfactory to Barclays (or such affiliate), which Transfer Agreement shall
(without limitation of the foregoing):

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

(B) provide for delivery to Barclays (or such affiliate) of customary
opinions (including, without limitation, accounting comfort letters,
opinions or beliefs relating to the due authorization, valid issuance
and fully paid and non-assessable nature of the Registered Securities
and the lack of material misstatements and omissions in the
Registration Statement, the Prospectus and Counterparty’s filings
under the Exchange Act); and

(C) provide for the payment by Counterparty of all fees and expenses
in connection with such resale customarily borne by an issuer,
including all registration costs and all reasonable fees and
expenses of counsel for Barclays (or such affiliate), excluding
underwriting or brokerage discounts and commissions.

(7) If the number of Shares covered by the Registration Statement is less
than the number of Registered Securities required to be delivered pursuant
to this paragraph and the provisions of “Net Share Settlement by
Counterparty” in Section 2 above, Counterparty shall, at the request of
Barclays, file additional registration statement(s) to register the sale of
all Registered Securities required to be delivered to Barclays.

(8) Counterparty shall cooperate with Barclays and use its reasonable best
efforts to take any other action necessary to effect the intent of the
provisions set forth in this paragraph.

	 	(ii)	 	If Counterparty timely elects to deliver Settlement Shares by
means of a private placement, the following provisions shall apply:

(1) all Settlement Shares shall be delivered to Barclays (or any
affiliate of Barclays designated by Barclays) pursuant to the exemption from
the registration requirements of the Securities Act provided by Section 4(2)
thereof;

(2) Barclays and any potential purchaser of any such shares from
Barclays (or any affiliate of Barclays designated by Barclays) identified by
Barclays shall have been afforded a reasonable opportunity to conduct a due
diligence investigation with respect to Counterparty customary in scope for
private placements of equity securities (including, without limitation, the
right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably
requested by them), and Counterparty shall not disclose material non-public
information in connection with such due diligence investigation; and

(3) an agreement (a “Private Placement Agreement”) shall have been entered
into between Counterparty and Barclays (or any affiliate of Barclays
designated by Barclays) in connection with the private placement of such
Settlement Shares by Counterparty to Barclays (or any such affiliate) and the
private resale of such shares by Barclays (or any such affiliate),
substantially similar to private placement purchase agreements customary for
private placements of equity securities, in form and substance reasonably
satisfactory to Barclays and Counterparty, which Private Placement Agreement
shall include, without limitation, provisions substantially similar to those
contained in such private placement

15

 

purchase agreements relating to the
eligibility of the placement of such Settlement Shares
for an exemption from registration under the Securities Act, including,
without limitation, appropriate representations, warranties, covenants and
agreements of Barclays, the indemnification of, and contribution in
connection with the liability of, Barclays and its affiliates, and shall
provide for the payment by Counterparty of all fees and expenses in
connection with such resale, including all reasonable fees and expenses of
one counsel for Barclays but not including any underwriter or broker
discounts and commissions, and shall contain representations, warranties and
agreements of Counterparty and Barclays reasonably necessary or advisable to
establish and maintain the availability of an exemption from the registration
requirements of the Securities Act for such resales.

(4) If Counterparty elects to deliver Net Settlement Shares to satisfy its
payment obligation of the Forward Cash Settlement Amount, neither
Counterparty nor Barclays shall take or cause to be taken any action that
would make unavailable either (i) the exemption set forth in Section 4(2) of
the Securities Act for the sale of any Shares by Counterparty to Barclays or
(ii) an exemption from the registration requirements of the Securities Act
reasonably acceptable to Barclays for resale of Settlement Shares by
Barclays.

	 	(iii)	 	The provisions of sub-paragraph (ii) shall apply to any
then-current Settlement Balance if (i) on any given day, Counterparty cannot
satisfy any of the conditions of sub-paragraph (i) or (ii) for a period of at
least ten (10) consecutive Exchange Business Days, Barclays has been reasonably
advised by its counsel that it is inadvisable to effect sales of Registered
Securities.
	 
	 	(iv)	 	If Counterparty elects to deliver Net Settlement Shares to
satisfy its payment obligation of the Forward Cash Settlement Amount, then, if
necessary, Counterparty shall use its commercially reasonable efforts to cause
the number of authorized but unissued shares of Common Stock to be increased to
an amount sufficient to permit Counterparty to fulfill its obligations “Net
Share Settlement by Counterparty” above.
	 
	 	(v)	 	If Counterparty elects to deliver Settlement Shares, Barclays
agrees to uses commercially reasonable efforts to effect sales of such Shares
pursuant to a registered offering or private placement, as applicable, pursuant
to sub-paragraph (i) or (ii) herein at commercially reasonable prices in light
of the market conditions and circumstances of Counterparty at the time of such
sale.
	 
	 	(vi)	 	Notwithstanding anything to the contrary contained herein,
Counterparty shall have the right to cancel its election to satisfy its payment
obligation of the Froward Cash Settlement Amount (or the then remaining balance
thereof) by delivering Net Settlement Shares or Make-Whole Shares at any time
before the Settlement Balance has been reduced to zero (such right, the
“Counterparty Settlement Cancellation Right”) by delivering notice to Barclays
on any Scheduled Trading Day. If Counterparty exercises Counterparty
Settlement Cancellation Right, (i) Barclays shall sell any Net Settlement
Shares or Make-Whole Shares (if any) that it has an obligation to sell as of
the time of receiving notice of Counterparty’s exercise of its Counterparty
Settlement Cancellation Right, (ii) Barclays shall reduce the Settlement
Balance by the amount realized in such sale of such Net Settlement Shares or
Make-Whole Shares and (iii) Counterparty shall make a cash payment to Barclays
in an amount equal to remaining Settlement Balance.
	 
	 	(v)	 	Counterparty agrees that any Registration Statement it files
for purposes of Net Share Settlement by Counterparty pursuant to the provisions
above, at the time the same becomes effective, will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein to make the statements therein not misleading. Counterparty
represents that any prospectus delivered to Barclays in connection with sales
made under the Registration Statement (as such prospectus may be supplemented
from time to time) will not include an untrue statement of a material fact or
omit to state a

16

 

	 	 	 	material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

	 	(j)	 	Transfer or Assignment. Counterparty may not transfer or assign any of its
rights or obligations under the Transaction without the prior written consent of
Barclays. Notwithstanding any provision of the Agreement to the contrary, Barclays
may, subject to applicable law, freely transfer and assign all of its rights and
obligations under the Transaction without the consent of Counterparty to any
affiliate of Barclays whose obligations hereunder are guaranteed by Barclays.
	 
	 	 	 	If at any time at which (1) the Equity Percentage exceeds *** or (2) Barclays,
Barclays Group (as defined below) or any person whose ownership position would be
aggregated with that of Barclays or Barclays Group (Barclays, Barclays Group or
any such person, a “Barclays Person”) under any relevant state corporate law or
any state or federal bank holding company or banking laws, or other federal, state
or local regulations or regulatory orders applicable to ownership of Shares
(“Applicable Laws”), owns, beneficially owns, constructively owns, controls, holds
the power to vote or otherwise meets a relevant definition of ownership in excess
of a number of Shares equal to (x) the number of Shares that would give rise to
reporting or registration obligations or other requirements (including obtaining
prior approval by a state or federal regulator) of a Barclays Person under
Applicable Laws and with respect to which such requirements have not been met or
the relevant approval has not been received minus (y) 1.0% of the number of Shares
outstanding on the date of determination (either such condition described in
clause (1) or (2), an “Excess Ownership Position”) and Barclays is unable, after
commercially reasonable efforts, to effect a transfer or assignment on pricing
terms and within a time period reasonably acceptable to it of all or a portion of
the Transaction such that an Excess Ownership Position no longer exists, Barclays
may designate any Scheduled Trading Day as an Early Termination Date with respect
to a portion (the “Terminated Portion”) of the Transaction, such that an Excess
Ownership Position no longer exists. In the event that Barclays so designates an
Early Termination Date with respect to a portion of this Transaction, a payment
shall be made pursuant to Section 6 of the Agreement as if (x) an Early
Termination Date had been designated in respect of a Transaction having terms
identical to this Transaction and a Number of Shares equal to the Terminated
Portion, (y) Counterparty shall be the sole Affected Party with respect to such
partial termination and (z) such Transaction shall be the only Terminated
Transaction (and, for the avoidance of doubt, the provisions of paragraph 5(o)
shall apply to any amount that is payable by Barclays to Counterparty pursuant to
this sentence). The “Equity Percentage” as of any day is the fraction, expressed
as a percentage, (A) the numerator of which is the number of Shares that Barclays
and any of its affiliates subject to aggregation with Barclays, for purposes of
the “beneficial ownership” test under Section 13 of the Exchange Act, and all
persons who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the
Exchange Act) with Barclays, beneficially own (within the meaning of Section 13 of
the Exchange Act) on such day and (B) the denominator of which is the number of
Shares outstanding on such day.
	 
	 	 	 	Notwithstanding any other provision in this Confirmation to the contrary requiring
or allowing Barclays to purchase, sell, receive or deliver any Shares or other
securities to or from Counterparty, Barclays may designate any of its affiliates
to purchase, sell, receive or deliver such Shares or other securities and
otherwise to perform Barclays’ obligations in respect of the Transaction and any
such designee may assume such obligations. Barclays shall be discharged of its
obligations to Counterparty to the extent of any such performance that complies
with the provisions of the Agreement, the Equity Definitions and this
Confirmation.
	 
	 	(k)	 	Role of Agent. Each of Barclays and Counterparty acknowledges to and
agrees with the other party hereto and to and with the Agent that (i) the Agent is
acting as agent for Barclays under the Transaction pursuant to instructions from such
party, (ii) the Agent is not a principal or party to the Transaction, and may
transfer its rights and obligations with respect to the Transaction, (iii) the Agent
shall have no responsibility, obligation or liability, by way of issuance, guaranty,
endorsement or otherwise in any manner with respect to the performance of either
party under the Transaction, (iv) Barclays and the Agent have not given, and
Counterparty is not relying (for

 

			

	[***]

	 	Redacted text. Confidential treatment requested; omitted text filed separately with the Securities and Exchange Commission.

17

 

	 	 	 	purposes of making any investment decision or
otherwise) upon, any statements, opinions or representations (whether written or
oral) of Barclays or the Agent, other than the representations
expressly set forth in this Confirmation or the Agreement, and (v) each party
agrees to proceed solely against the other party, and not the Agent, to collect or
recover any money or securities owed to it in connection with the Transaction.
Each party hereto acknowledges and agrees that the Agent is an intended third
party beneficiary hereunder. Counterparty acknowledges that the Agent is an
affiliate of Barclays.
	 
	 	 	 	For the avoidance of doubt, any performance by Counterparty of its obligations
(including notice obligations) through or by means of the Agent’s agency for
Barclays shall constitute good performance of Counterparty’s obligations hereunder
to Barclays; however, performance by Barclays of its obligations hereunder
(including notice obligations) to Counterparty through or by means of the Agent’s
agency for Barclays shall not constitute good performance of Barclays’s
obligations hereunder unless and then only to the extent that Counterparty
actually receives the benefit of such performance.
	 
	 	(l)	 	Regulatory Provisions. The time of dealing for the Transaction will be
confirmed by Barclays upon written request by Counterparty. The Agent will furnish to
Counterparty upon written request a statement as to the source and amount of any
remuneration received or to be received by the Agent in connection with a
Transaction.
	 
	 	(m)	 	Netting and Setoff. Obligations under the Transaction shall not be netted,
recouped or set off (including pursuant to Section 6 of the Agreement) against any
other obligations of the parties, whether arising under the Agreement, this
Confirmation, under any other agreement between the parties hereto, by operation of
law or otherwise, and no other obligations of the parties shall be netted, recouped
or set off (including pursuant to Section 6 of the Agreement) against obligations
under the Transaction, whether arising under the Agreement, this Confirmation, under
any other agreement between the parties hereto, by operation of law or otherwise, and
each party hereby waives any such right of setoff, netting or recoupment; provided
that both parties agree that subparagraph (ii) of Section 2(c) of the Agreement shall
apply to the Transaction, except that upon the occurrence of an Event of Default or
Termination Event with respect to a party who is the Defaulting Party or the Affected
Party (“X”), the other party (“Y”) will have the right (but not be obliged) without
prior notice to X or any other person to set-off or apply any obligation of X under
the Transaction owed to Y (or any Affiliate of Y) (whether or not matured or
contingent and whether or not arising under the Agreement, and regardless of the
currency, place of payment or booking office of the obligation) against any
obligation of Y (or any Affiliate of Y) under an Equity Contract owed to X (whether
or not matured or contingent and whether or not arising under the Agreement, and
regardless of the currency, place of payment or booking office of the obligation). Y
will give prompt notice to the other party of any set-off effected under this
paragraph. “Equity Contract” shall mean for purposes of this paragraph any
transaction relating to Shares between X and Y (or any Affiliate of Y) that qualifies
as ‘equity’ under applicable accounting rules. Amounts (or the relevant portion of
such amounts) subject to set-off may be converted by Y into the Termination Currency
at the rate of exchange at which such party would be able, acting in a reasonable
manner and in good faith, to purchase the relevant amount of such currency. If any
obligation is unascertained, Y may in good faith estimate that obligation and set-off
in respect of the estimate, subject to the relevant party accounting to the other
when the obligation is ascertained. Nothing in this section shall be effective to
create a charge or other security interest.
	 
	 	(n)	 	Staggered Settlement. Barclays may, by notice to Counterparty on or prior
to any Settlement Date (a “Nominal Settlement Date”), elect to deliver any Shares
deliverable on such Nominal Settlement Date on two or more dates (each, a “Staggered
Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:
(i) in such notice, Barclays will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date)
or delivery times and how it will allocate the Shares it is required to deliver under
the applicable settlement method above among the Staggered Settlement Dates or
delivery times; and (ii) the aggregate number of Shares that Barclays will deliver to

18

 

	 	 	 	Counterparty hereunder on all such Staggered Settlement Dates and delivery times will
equal
the number of Shares that Barclays would otherwise be required to deliver on such
Nominal Settlement Date.
	 
	 	(o)	 	Alternative Calculations and Counterparty Payment on Early Termination and
on Certain Extraordinary Events. If Barclays owes Counterparty or if Counterparty
owes Barclays any amount in connection with the Transaction (i) pursuant to Sections
12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions or (ii) pursuant to Section
6(d)(ii) of the Agreement (a “Payment Obligation”), Counterparty shall have the
right, in its sole discretion, to satisfy or to require Barclays to satisfy, as the
case may be, any such Payment Obligation by delivery of Termination Delivery Units
(as defined below) by giving irrevocable telephonic notice to Barclays, confirmed in
writing within one Scheduled Trading Day, no later than noon New York time on the
Early Termination Date or other date the Transaction is cancelled or terminated, as
applicable, where such notice shall include a representation and warranty from
Counterparty that it is not, as of the date of the telephonic notice and the date of
such written notice, aware of any material non-public information concerning itself
or the Shares (where “material” shall have the meaning set forth in paragraph 5(p)
below) (“Notice of Counterparty Termination Delivery”); provided that if Counterparty
does not elect to require Barclays to satisfy its Payment Obligation by delivery of
Termination Delivery Units, Barclays shall have the right (without regard to the
exceptions set forth in clauses (i) and (ii) above), in its sole discretion, to elect
to satisfy its Payment Obligation by delivery of Termination Delivery Units,
notwithstanding Counterparty’s failure to elect or election to the contrary; and
provided further that Counterparty shall not have the right to so elect (but, for the
avoidance of doubt, Barclays shall have the right to so elect) in the event of (i) an
Insolvency, a Nationalization or a Merger Event, in each case, in which the
consideration or proceeds to be paid to holders of Shares consists solely of cash or
(ii) an Event of Default in which Counterparty is the Defaulting Party or a
Termination Event in which Counterparty is the Affected Party, which Event of Default
or Termination Event resulted from an event or events within Counterparty’s control.
Within a commercially reasonable period of time following receipt of a Notice of
Counterparty Termination Delivery, Barclays shall deliver to Counterparty or
Counterparty shall deliver to Barclays, as the case may be, a number of Termination
Delivery Units having a fair market value (net of any brokerage and underwriting
commissions and fees, including any customary private placement fees) equal to the
amount of such Payment Obligation (such number of Termination Delivery Units to be
delivered to be determined by the Calculation Agent as the number of whole
Termination Delivery Units that could be sold over a commercially reasonable period
of time to generate proceeds equal to the cash equivalent of such payment
obligation). If the provisions set forth in this paragraph are applicable, the
provisions of Sections 9.8, 9.9, 9.10, 9.11 (modified as described above) and 9.12 of
the Equity Definitions shall be applicable, except that all references to “Shares”
shall be read as references to “Termination Delivery Units.” “Termination Delivery
Units” means in the case of a Termination Event, Event of Default or Delisting, one
Share or, in the case of Nationalization, Insolvency, Tender Offer or Merger Event, a
unit consisting of the number or amount of each type of property received by a holder
of one Share (without consideration of any requirement to pay cash or other
consideration in lieu of fractional amounts of any securities) in such
Nationalization, Insolvency, Tender Offer or Merger Event; provided that if such
Nationalization, Insolvency, Tender Offer or Merger Event involves a choice of
consideration to be received by holders, such holder shall be deemed to have elected
to receive the maximum possible amount of cash.
	 
	 	(p)	 	No Material Non-Public Information. On the Trade Date, Counterparty
represents and warrants to Barclays that it is not aware of any material non-public
information concerning itself or the Shares. “Material” information for these
purposes is any information to which an investor would reasonably attach importance
in reaching a decision to buy, sell or hold Shares.
	 
	 	(q)	 	Maximum Number of Shares. The number of Shares that may be issued under any
settlement by Counterparty pursuant to this Confirmation, the Definitions or the
Agreement will be limited to the total Shares authorized but not outstanding, reduced
by the total amount of contingently issuable Shares. If the number of Shares to be
issued at settlement by Counterparty exceeds the

19

 

	 	 	 	limit in the first sentence of this provision, Counterparty will use its best
efforts to obtain all necessary approvals to issue additional Shares to enable it
to satisfy all obligations hereunder.
	 
	 	(r)	 	Barclays Adjustments. In the event that Barclays reasonably determines in
good faith that it is appropriate with regard to (i) any legal, regulatory or
self-regulatory requirements or related policies and procedures (whether or not such
requirements, policies or procedures are imposed by law or have been voluntarily
adopted by Barclays, and including, without limitation, Rule 10b-18, Rule 10b-5
Regulation M and Regulation 14E under the Exchange Act, collectively, the
“Requirements”), or (ii) any day the trading volume or liquidity of trading in the
Shares is materially reduced from levels prevailing on the Trade Date, as determined
in the commercially reasonable discretion of the Calculation Agent, for Barclays to
refrain from purchasing Shares or to purchase fewer than the number of Shares
Barclays would otherwise purchase on any Trading Day during the duration of this
Transaction, then Barclays may act pursuant to the “Consequence of Disrupted Days” in
Section 2 as if such a circumstance resulted in a Disrupted Day.
	 
	 	 	 	Barclays shall notify Counterparty upon the exercise of Barclays’s rights pursuant
to this paragraph 5(r) and shall subsequently notify Counterparty on the day
Barclays reasonably believes that the circumstances giving rise to such exercise
have changed; provided, however, that Barclays’s notice shall not specify, and
Barclays shall not otherwise communicate to Counterparty, the reason for
Barclays’s election to suspend the Calculation Period.
	 
	 	(s)	 	Indemnity. Counterparty will indemnify and hold Barclays harmless against
any losses, claims, damages, expenses or liabilities to which it may become subject
in connection with any matter referred to in this Confirmation, except to the extent
that any such loss, claim, damage, expense or liability results from (i) gross
negligence, intentional misconduct or bad faith of Barclays in effecting the
transactions which are the subject of this Confirmation; (ii) Barclays’s breach of
any covenant under this Confirmation; or (iii) the purchase of any Shares in
connection with this Confirmation unless the loss, claim, damage or liability in
connection therewith results from Counterparty’s breach of this Confirmation. The
indemnity obligations of Counterparty under this paragraph shall be in addition to
any liability which Counterparty may otherwise have, shall extend upon the same terms
and conditions to any affiliate of Barclays and the partners, directors, officers,
agents, employees and controlling persons (if any), as the case may be, of Barclays
and any such affiliate and shall be binding upon and inure to the benefit of any
successors, assigns, heirs and personal representatives of Counterparty, Barclays,
any such affiliate and any such person. The foregoing provisions shall survive any
termination or completion of this Confirmation. For the purposes of this paragraph,
the term “Barclays” shall include Barclays and its affiliates.
	 
	 	(t)	 	Tax Disclosure. Notwithstanding anything to the contrary herein, in the
Equity Definitions or in the Agreement, and notwithstanding any express or implied
claims of exclusivity or proprietary rights, the parties (and each of their
employees, representatives or other agents) are authorized to disclose to any and all
persons, beginning immediately upon commencement of their discussions and without
limitation of any kind, the tax treatment and tax structure of the Transaction, and
all materials of any kind (including opinions or other tax analyses) that are
provided by either party to the other relating to such tax treatment and tax
structure.
	 
	 	(u)	 	Status of Claims in Bankruptcy. Barclays acknowledges and agrees that this
Confirmation is not intended to convey to Barclays rights with respect to the
Transaction that are senior to the claims of common stockholders in any U.S.
bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or
shall be deemed to limit Barclays’ right to pursue remedies in the event of a breach
by Counterparty of its obligations and agreements with respect to the Transaction;
provided, further, that nothing herein shall limit or shall be deemed to limit
Barclays’ rights in respect of any transactions other than the Transaction.
	 
	 	(v)	 	No Collateral. Notwithstanding any provision of this Confirmation, the
Agreement, Equity Definitions or any other agreement between the parties to the
contrary, the obligations of Counterparty under the Transaction are not secured by
any collateral.

20

 

	 	(w)	 	Securities Contract; Swap Agreement. The parties hereto agree and
acknowledge that Barclays is one or more of a “financial institution,” “swap
participant” and “financial participant” within the meaning of Sections 101(22),
101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto further agree and
acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term
is defined in Section 741(7) of the Bankruptcy Code, with respect to which each
payment and delivery hereunder or in connection herewith is a “termination value,”
“payment amount” or “other transfer obligation” within the meaning of Section 362 of
the Bankruptcy Code and a “settlement payment” or a “transfer” within the meaning of
Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is
defined in Section 101(53B) of the Bankruptcy Code, with respect to which each
payment and delivery hereunder or in connection herewith is a “termination value,” a
“payment amount” or “other transfer obligation” within the meaning of Section 362 of
the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the
Bankruptcy Code, and (B) that Barclays is entitled to the protections afforded by,
among other sections, Section 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e),
546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.
	 
	 	(x)	 	Right to Extend. Barclays may postpone any potential Valuation Date or
postpone or extend any other date of valuation or delivery with respect to some or
all of the relevant Shares, if Barclays determines, in its reasonable discretion,
that such postponement or extension is reasonably necessary or appropriate to
preserve Barclays’ hedging or hedge unwind activity hereunder in light of existing
liquidity conditions (including but not limited to the liquidity in the stock borrow
market) or to enable Barclays to effect purchases or sale of Shares in connection
with its hedging, hedge unwind or settlement activity hereunder in a manner that
would, if Barclays were Issuer or an affiliated purchaser of Issuer, be in compliance
with applicable legal, regulatory or self-regulatory requirements, or with related
policies and procedures applicable to Barclays.
	 
	 	(y)	 	Governing Law. The law of the State of New York (without reference to
choice of law doctrine).
	 
	 	(z)	 	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.
	 
	 	(aa)	 	Confidentiality. Except as required by law or judicial or administrative
process, or as requested by a regulatory authority or self-regulatory organization,
each party hereto agrees to keep this Confirmation, and the transactions contemplated
hereby confidential. In the event disclosure is permitted pursuant to the preceding
sentence, the disclosing party shall (i) provide prior notice of such disclosure to
the other party to the extent reasonably practicable under the circumstances, (ii)
use reasonable efforts to minimize the extent of such disclosure and (iii) comply
with all reasonable requests of the other party to minimize the extent of such
disclosure. Notwithstanding the foregoing, effective from the date of commencement of
discussions concerning the Transaction, Counterparty, Barclays and each of their
respective employees, representatives, or other agents may disclose to any and all
persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses)
that are provided to the Counterparty relating to such tax treatment and tax
structure.

21

 

6. Account Details:

	 	(a)	 	Account for payments to Counterparty:
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	Account for delivery of Shares to Counterparty:
	 
	 	 	 	Deliver shares via DWAC as follows:
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	(b)	 	Account for payments to Barclays:
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***
	 
	 	 	 	***

7. Offices:

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

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

8. Notices:

For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Counterparty:
	 
	 	 	 	Reinsurance Group of America, Incorporated

Attn: William Hutton, General Counsel

1370 Timberlake Manor Parkway

Chesterfield, MO 63017-6039

Telephone: 636-736-7339

Facsimile: 636-736-7739
	 
	 	(b)	 	Address for notices or communications to Barclays:
	 
	 	 	 	Barclays Bank PLC

c/o Barclays Capital Inc.

745 Seventh Ave.

New York, NY 10019

Attn: Paul Robinson

Telephone: (+1) 212-526-0111

Facsimile: (+1) 917-522-0458

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

 

			

	[***]

	 	Redacted text. Confidential treatment requested; omitted text filed separately with the Securities and Exchange Commission.

22

 

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

	 	 	 	 	 
	Very truly yours,

BARCLAYS CAPITAL INC.,

acting solely as Agent in connection with this Transaction

 	 	 
	By:  	/s/ Bryan C. Spencer
 	 	 
	 	Name:  	Bryan C. Spencer 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 
	Accepted and confirmed as of the Trade Date:

REINSURANCE GROUP OF AMERICA, INCORPORATED

 	 	 
	By:  	/s/ Todd C. Larson
 	 	 
	 	Name:  	Todd C. Larson 	 	 
	 	Title:  	EVP Corporate Finance & Treasurer 	 	 

23

 

	 	 	 	 	 

SCHEDULE A

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

	 	 	 

	1. Trade Date:

	 	March 7, 2011
	 
	 	 
	2. Number of Shares:

	 	2,500,000 
	 
	 	 
	3. Initial Purchase Price:

	 	USD 59.76 per Share
	 
	 	 
	4. Additional Payment:

	 	USD ***
	 
	 	 
	5. Maximum Maturity Date:

	 	***
	 
	 	 
	6. Minimum Maturity Date:

	 	***
	 
	 	 
	7. Discount:

	 	USD ***
	 
	 	 
	8. Regular Dividend:

	 	***

 

			

	[***]

	 	Redacted text. Confidential treatment requested; omitted text filed separately with the Securities and Exchange Commission.

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