Document:

exv10w4

 

Exhibit 10.4

Confirmation of OTC Warrant Transaction

	 	 	 
	Date:

	 	June 29, 2007
	 
	 	 
	To:

	 	Tektronix, Inc. (“Counterparty”)

Attention: Treasurer

Telephone No.: 503-627-4622

Facsimile No.: 503-627-6108

	 	 	 
	From:

	 	Merrill Lynch Financial Markets, Inc. (“Dealer” or “MLFM”)
	 
	 	 
	 

	 	4 World Financial Center 5th Floor
	 

	 	New York, New York 10080

Attention: Corporate Derivatives
	 

	 	Facsimile No.: (212) 738-1069
	 

	 	Telephone No.: (212) 449-6763

MLFM Reference: 078182399

Dear Sir / Madam:

     The purpose of this letter agreement (this “Confirmation”) is to amend and restate the
terms and conditions of the above-referenced transaction entered into among Counterparty, Dealer
and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Agent”) on the Trade Date
specified below (the “Transaction”). This Confirmation amends, restated and supersedes in
its entirety the Confirmation in respect of the Transaction dated as of June 25, 2007. This
Confirmation constitutes a “Confirmation” as referred to in the Agreement specified below.

     The definitions and provisions contained in the 2000 ISDA Definitions (the “Swap
Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions” and, together with the Swap Definitions, the “Definitions”), in each case
as published by the International Swaps and Derivatives Association, Inc., are incorporated into
this Confirmation. In the event of any inconsistency between the Swap Definitions and the Equity
Definitions, the Equity Definitions will govern, and in the event of any inconsistency between the
Definitions and this Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Share Option Transaction” for the purposes of
the Equity Definitions and to a “Swap Transaction” for the purposes of the Swap Definitions. For
purposes of this Transaction, “Warrant Style”, “Warrant Type”, “Number of Warrants” and “Warrant
Entitlement” (each as defined below) shall be used herein as if such terms were referred to as
“Option Style”, “Option Type”, “Number of Options” and “Option Entitlement”, respectively, in the
Definitions.

     This Confirmation evidences a complete binding agreement between you and us as to the terms of
the Transaction to which this Confirmation relates. This Confirmation (notwithstanding anything to
the contrary herein), shall be subject to, and form part of, an agreement in the 1992 form of the
ISDA Master Agreement (Multicurrency Cross Border) (the “Master Agreement” or
“Agreement”) as if we had executed an agreement in such form (but without any Schedule and
with elections specified in the “ISDA Master Agreement” Section of this Confirmation) on the Trade
Date. In the event of any inconsistency between the provisions of that Agreement and this
Confirmation, this Confirmation will prevail for the purpose of this Transaction. The parties
hereby agree that the Transaction evidenced by this Confirmation shall be the only Transaction
subject to and governed by the Agreement.

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

General Terms: 

Confirmation of OTC Warrant Transaction (amended)

 

 

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	Trade Date:

	 	June 25, 2007
	 
	 	 
	Effective Date:

	 	June 29, 2007, subject to cancellation of the OTC
Warrant Transaction prior to 5:00 p.m. (New York City
time) on such date by the Counterparty. In the event of
such cancellation, any payments previously made
hereunder, including the Premium, shall be returned to
the person making such payment. In addition,
Counterparty shall reimburse Dealer for any costs or
expenses (including market losses) relating to the
unwinding of its hedging activities in connection with
the Transaction (including any loss or cost incurred as
a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position).
	 
	 	 
	Warrant Style:

	 	European, subject to “Procedures for Exercise” below.
	 
	 	 
	Warrant Type:

	 	Call
	 
	 	 
	Seller:

	 	Counterparty
	 
	 	 
	Buyer:

	 	Dealer
	 
	 	 
	Shares:

	 	Shares of common stock, without par value, of
Counterparty (Security Symbol: “TEK”).
	 
	 	 
	Number of Warrants:

	 	 6,942,449
	 
	 	 
	Daily Number of Warrants:

	 	For any day, the unexercised Number of Warrants on such
day divided by the remaining number of Expiration Dates
(including such day) and rounded down to the nearest
whole number, with the balance of the Number of Warrants
exercised on the final Expiration Date.
	 
	 	 
	Warrant Entitlement:

	 	One (1) Share per Warrant
	 
	 	 
	Strike Price:

	 	 $ 49.2623
	 
	 	 
	Premium:

	 	 $35,190,000.00
	 
	 	 
	Premium Payment Date:

	 	The Effective Date; provided no cancellation of the
Transaction has occurred prior to 5:00 p.m. (New York
City time) on such date by the Counterparty.
	 
	 	 
	Exchange:

	 	New York Stock Exchange
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Full Exchange Business Day:

	 	A Scheduled Trading Day that has a scheduled closing
time for its regular trading session at 4:00 p.m. (New
York City time) or the then standard closing time for
regular trading on the Exchange and is not a Disrupted
Day.
	 
	 	 
	Procedures for 

Exercise:
	 	 
	 
	 	 
	Expiration Time:

	 	 11:59 p.m. (New York City time).
	 
	 	 
	Expiration Dates:

	 	The 100 consecutive Full Exchange Business Days
beginning on and including October 15, 2012 each shall
be the Expiration Date for a number of Warrants equal to
the Daily Number of Warrants on such date.
Notwithstanding the

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	 	foregoing and anything to the
contrary in the Equity Definitions or in the definition
of “Full Exchange Business Day,” if a Market Disruption
Event occurs on any Expiration Date (the “Relevant
Day”), the Calculation Agent may determine that such
Expiration Date, while not a Full Exchange Business Day,
is a Disrupted Day only in part, in which case the
Calculation Agent shall make adjustments to the Daily
Number of Warrants for the Relevant Day and shall
designate an additional Expiration Date following the
last previously scheduled Expiration Date as the
Expiration Date for a number of Warrants equal to the
difference between the Daily Number of Warrants
determined for the Relevant Day without such adjustment,
and the Daily Number of Warrants for such date as
adjusted pursuant to this paragraph. Section 6.6 of the
Equity Definitions shall not apply to any Valuation Date
occurring on an Expiration Date.
	 
	 	 
	Exercise Dates:

	 	Each Expiration Date shall be an Exercise Date for a
number of Warrants equal to the Daily Number of Warrants
for such date.
	 
	 	 
	Automatic Exercise:

	 	Applicable, and means that the Daily Number of Warrants
for the corresponding Expiration Date will be deemed to
be automatically exercised at the Expiration Time on
such Expiration Date unless Buyer notifies Seller (by
telephone or in writing) prior to the Expiration Time on
such Expiration Date that it does not wish Automatic
Exercise to occur, in which case Automatic Exercise will
not apply to such Expiration Date.

	 	 	 	 	 
	Counterparty’s Telephone

	 	Address:
	 	 14200 SW Karl Braun Drive
	Number and Telex and/or

	 	 	 	 Beaverton, OR 97077
	Facsimile Number and

	 	 	 	 
	Contact Details for

	 	Attention:
	 	 Treasurer
	purpose of Giving Notice:

	 	Facsimile No.:
	 	 503-627-6108
	 

	 	Telephone No.:
	 	 503-627-4622

	 	 	 
	Valuation:
	 	 
	 
	 	 
	Valuation Dates:

	 	Each Exercise Date
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	Cash Settlement:

	 	Applicable; provided that it shall be a condition of
Counterparty’s right to elect Cash Settlement that on
the date of the Cash Settlement election, none of
Counterparty, its directors, executive officers, or any
person controlling, or exercising influence over, its
decision to elect Cash Settlement is in possession of
any material non-public information with respect to
Counterparty or the Shares. If Counterparty elects to
settle the Transaction by Cash Settlement, Counterparty
represents and agrees that:
	 
	 	 
	 

	 	(i) Counterparty is not, on the date of the Cash
Settlement election, and will not be, on any day during
the period from and including the first Expiration Date
to and including the final Expiration Date, engaged in a
distribution, as such term is used in Regulation M under
the Securities Exchange Act of 1934, as amended (the
“Exchange Act”); and
	 
	 	 
	 

	 	(ii) during the period from and including the first
Expiration Date to and including the final Expiration
Date, without the prior written consent of Dealer, the
Counterparty shall not, and shall cause its affiliates
and affiliated purchasers (each as defined in Rule
10b-18 under the Exchange Act) not to, directly or

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	 	indirectly (including, without limitation, by means of a
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 equivalent interest, including a unit of
beneficial interest in a trust or limited partnership or
a depository share) or any security convertible into or
exchangeable for the Shares.
	 
	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Settlement Price:

	 	For each Valuation Date, the Volume Weighted Average
Price of the Shares (“VWAP”) calculated from 9:45 a.m.
to 3:45 p.m., as observed under the heading Bloomberg
“VWAP” on Bloomberg page TEK.N <equity> VAP (or
any successor thereto) (or if such volume-weighted
average price is unavailable, the market value of one
Share on such Valuation Date, as determined by the
Calculation Agent); provided that if the scheduled
weekday closing time of the Exchange for any Valuation
Date is later than 4:00 p.m. (without regard to after
hours or any other trading outside of the regular
trading session hours) the VWAP shall be calculated for
such Valuation Date from 9:45 a.m. until 15 minutes
prior to such later closing time of the Exchange. 

Section 6.3(a) of the Equity Definitions is hereby
amended by replacing clause (ii) in its entirety with
“(ii) an Exchange Disruption, or” and inserting
immediately following clause (iii) the phrase “; in each
case that the Calculation Agent determines is material.”
	 
	 	 
	Cash Settlement Payment 

Date:

	 	With respect to each Valuation Date, three (3) Currency
Business Days after the final Valuation Date.
	 
	 	 
	Settlement Method Election:

	 	Applicable; provided that references in Section 7.1 of
the Equity Definitions to “Physical Settlement” shall be
replaced by references to “Net Physical Settlement.”
	 
	 	 
	Electing Party:

	 	Counterparty
	 
	 	 
	Settlement Method Election 

Date:

	 	Ten (10) Business Days prior to the first Expiration Date
	 
	 	 
	Default Settlement Method:

	 	Net Physical Settlement.
	 
	 	 
	Net Physical Settlement:

	 	In the event that the Counterparty elects to settle this
Transaction by Net Physical Settlement, subject to
“Conditions of Net Physical Settlement” below,
Counterparty shall deliver to Dealer on the Settlement
Date a number of Shares (the “Delivered Shares”) equal
to the Share Delivery Quantity, provided that in the
event that the number of Shares calculated comprises any
fractional Share, only whole Shares shall be delivered
and an amount in cash equal to the value of such
fractional share shall be payable by the Counterparty to
Dealer in lieu of such fractional Share.
	 
	 	 
	Share Delivery Quantity:

	 	For each Exercise Date, a number of Shares, as
calculated by the Calculation Agent, equal to the Net
Physical Settlement Amount for such Exercise Date
divided by the Settlement Price on the Valuation Date in
respect of such Settlement Date plus an amount in cash
in lieu of any fractional shares (based on the
applicable Settlement Price).

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	Net Physical Settlement 

Amount:

	 	For any Exercise Date, an amount equal to the product of
(i) the Number of Warrants being exercised on the
relevant Exercise Date, (ii) the Strike Price
Differential for such Exercise Date and (iii) the
Warrant Entitlement.
	 
	 	 
	Strike Price Differential:

	 	For any Valuation Date, (i) if the Settlement Price is
greater than the Strike Price, an amount equal to the
excess of such Settlement Price over the Strike Price
for such Valuation Date or (ii) if such Settlement Price
is less than or equal to the Strike Price, zero.
	 
	 	 
	Settlement Date:

	 	Settlement with respect to each Exercise Date shall
occur on the third (3rd) Full Exchange Business Day
following the final Valuation Date, provided that Dealer
shall have the right to request by prior written notice
to Counterparty a Settlement Date with respect to any
Exercise Date and the related Share Delivery Quantity
that is three (3) Full Exchange Business Days following
such Exercise Date. Such request shall not unreasonably
be denied.
	 
	 	 
	Conditions to Net Physical
Settlement:

	 	If, in connection with or six months following delivery
of Shares hereunder, Dealer notifies the Counterparty
that Dealer has reasonably determined after advice from
counsel that there is a considered risk that such Shares
are subject to restrictions on transfer in the hands of
Dealer pursuant to the rules and regulations promulgated
under the Securities Act of 1933, as amended (the
“Securities Act”), then Counterparty shall either (i)
deliver Shares that are covered by an effective
registration statement of Counterparty for immediate
resale by Dealer or (ii) agree to deliver additional
Shares so that the value of such Shares as determined by
the Calculation Agent to reflect an appropriate
liquidity discount, equals the value of the number of
Shares that would otherwise be deliverable if such
Shares were freely tradable upon receipt by Dealer.

(A) If Counterparty elects to deliver Shares as
described in above clause (i), then promptly following
such notification from Dealer

(a) Counterparty shall afford Dealer a reasonable
opportunity to conduct a due diligence investigation
with respect to Counterparty that is customary in scope
for underwritten offerings of equity securities that
yields a result reasonably satisfactory to Dealer;

(b) Counterparty shall promptly make available to Dealer
an effective registration statement for immediate resale
(the “Registration Statement”) in form and content
reasonably satisfactory to Dealer and filed pursuant to
Rule 415 under the Securities Act, and such prospectuses
as Dealer may reasonably request to comply with the
applicable prospectus delivery requirements (the
“Prospectus”) for the resale by Dealer of such number of
Shares as Dealer shall reasonably specify in accordance
with this paragraph, such Registration Statement to be
effective and Prospectus to be current until the
earliest of the date on which (1) all Delivered Shares
have been sold by Dealer, (2) Dealer has advised
Counterparty that it no longer requires that such
Registration Statement be effective, (3) all remaining
Delivered Shares could be sold by Dealer without
registration pursuant to Rule 144 promulgated under the
Securities Act (the “Registration Period”) or (4)
Counterparty has provided a legal opinion in form and
substance satisfactory to Dealer (with customary
assumptions and exceptions) that the Shares issuable
upon exercise of these Warrants will be freely
tradable
under the Securities Act upon delivery to Dealer and not
subject to any legend

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restricting transferability. It is
understood that the Registration Statement and
Prospectus will cover a number of Shares equal to the
aggregate number of Shares (if any) reasonably estimated
by Dealer to be potentially deliverable by Counterparty
in connection with Net Physical Settlement hereunder
(not to exceed the Maximum Deliverable Share Amount) and
shall be subject to the same suspension of sales during
“blackout dates” as provided in the following paragraph.
Clause (B)(c) below shall apply mutatis mutandis in the
event of any blackout dates occurring during Dealer’s
selling efforts during the Registration Period; and

(c) Counterparty will enter into a registration rights
agreement with Dealer in form and substance reasonably
acceptable to Dealer, which agreement will contain among
other things, customary representations and warranties
and indemnification, restrictions on sales during
“blackout dates” as provided for in the registration
rights agreement (the “Registration Rights Agreement”)
entered into by Counterparty on or about the date
hereof, provide for delivery of comfort letters and
opinions of counsel and other rights relating to the
registration of a number of Shares equal to the number
of Delivered Shares and other Shares deliverable
hereunder up to the Maximum Deliverable Share Amount.

(B) If Counterparty elects to deliver Shares as
described in above clause (ii), then promptly following
such notification from Dealer

(a) Counterparty shall afford Dealer and any potential
institutional purchaser of any Shares identified by
Dealer a reasonable opportunity to conduct a due
diligence investigation with respect to Counterparty
that is customary in scope for private placements of
equity securities subject to execution of any customary
confidentiality agreements;

(b) Counterparty shall enter into an agreement (a
“Private Placement Agreement”) with Dealer on
commercially reasonable terms in connection with the
private placement of such Shares (including any
additional Shares pursuant to clause (c) below) by
Counterparty to Dealer or an affiliate and the private
resale of such shares by Dealer or such affiliate,
substantially similar to private placement purchase
agreements customary for private placements of equity
securities, in form and substance commercially
reasonably satisfactory to Dealer and Counterparty,
which Private Placement Agreement shall include
provisions relating to the indemnification of, and
contribution in connection with the liability of, Dealer
and its affiliates, shall provide for the payment by
Counterparty of all expenses in connection with such
resale, including all reasonable and documented fees and
expenses of counsel for Dealer, shall contain
representations, warranties and agreements of
Counterparty reasonably necessary or advisable to
establish and maintain the availability of an exemption
from the registration requirements of the Securities Act
for such resales, and shall use reasonable best efforts
to provide for the delivery of accountants’ “comfort
letters” to Dealer or such affiliate with respect to the
financial statements and certain financial information
contained in or incorporated by reference into the
offering memorandum prepared for the resale of such
Shares;

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(c) Dealer shall sell the Delivered Shares in a
commercially reasonable manner until the amount received
by Dealer for the sale of the Shares (the “Proceeds
Amount”) is equal to the Net Physical Settlement Amount.
Any remaining Delivered Shares shall be returned to
Counterparty. If the Proceeds Amount is less than the
Net Physical Settlement Amount, Counterparty shall
promptly deliver upon notice from Dealer additional
Shares to Dealer until the dollar amount from the sale
of such Shares by Dealer equals the difference between
the Net Physical Settlement Amount and the Proceeds
Amount. In no event shall Counterparty be required to
deliver to Dealer a number of Shares greater than the
Maximum Deliverable Share Amount.

(C) Notwithstanding the foregoing: (I) if Counterparty
has elected to deliver Shares as described in clause (i)
above and either (a) Counterparty does not provide for
the sale of the Shares under the Registration Statement
as provided in the Registration Rights Agreement or (b)
some Shares cannot be registered under the Registration
Statement due to Rule 415(a)(4) under the Securities
Act, then the provisions of sub-paragraph (B) shall
apply to the extent Counterparty has not satisfied its
obligations hereunder by the delivery of Shares pursuant
to sub-paragraph (A). (II) If sub-paragraph (B) is
applicable and Counterparty fails to satisfy its
obligations under such sub-paragraph (B), then
Counterparty may deliver unregistered Shares of
equivalent value to the Net Physical Settlement Amount
(or, if applicable, the unsatisfied portion thereof).
The value of any unregistered Shares so delivered shall
be discounted to reflect an appropriate liquidity
discount (determined by Dealer in a commercially
reasonable manner, taking into account Dealer’s policies
and determinations with respect to any transfer
restrictions that Dealer deems it advisable to observe
in connection with sales of such Shares). (III) If some
or all of the Delivered Shares cannot be used to close
out stock loans in the shares of Counterparty entered
into to establish or maintain short positions by Dealer
in connection with this Transaction without a prospectus
being required by applicable law to be delivered to such
lender, then the value of any such Delivered Shares
shall reflect the cost (determined by Dealer in good
faith and in a commercially reasonable manner) to Dealer
of trading Shares in order to close out its hedge
position if any, in all cases for purposes of
calculating the Delivered Shares. In no event shall
Counterparty be required to top-up the delivery in cash.

	 	 	 
	Limitations on Net 

Physical Settlement by 

Counterparty:

	 	Notwithstanding anything herein or in the Agreement to
the contrary, the number of Shares that may be delivered
at settlement by Counterparty shall not exceed 10,413,674 at any time (“Maximum Deliverable Share
Amount”), as adjusted by Calculation Agent to account
for any subdivision, stock-split, stock combination,
reclassification, certain distributions, dividends and
payments to holders of Counterparty’s common stock or
similar dilutive or anti-dilutive event with respect to
the Shares.
	 
	 	 
	 

	 	Counterparty represents and warrants that the number of
Available Shares as of the Trade Date is greater than
the Maximum Deliverable Share Amount. Counterparty
covenants and agrees that (i) Counterparty shall not
take any action of corporate governance or otherwise to
reduce the number of Available Shares below the Maximum
Deliverable Share Amount and (ii) Counterparty shall use
its reasonable efforts to cause the number of Available
Shares at all times to be greater than the Maximum
Deliverable Share Amount.
	 
	 	 
	 

	 	For this purpose, “Available Shares” means the number of
Shares Counterparty

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	 	currently has authorized (but not
issued and outstanding) less the maximum number of
Shares that may be required to be issued by Counterparty
in connection with stock options, convertibles, and
other commitments of Counterparty that may require the
issuance or delivery of Shares in connection therewith.
	 
	 	 
	Dividends:
	 	 
	 
	 	 
	Dividends:

	 	If at any time during the period from and including the
Trade Date, to but excluding the final Expiration Date,
an ex-dividend date for a cash dividend occurs with
respect to the Shares (an “Ex-Dividend Date”), and that
dividend is different from the Regular Dividend on a per
Share basis, then the Calculation Agent will, adjust
the Strike Price, the Number of Warrants, the Daily
Number of Warrants, the Warrant Entitlement and any
other variable to preserve the fair value of the Warrant
after taking into account such dividend.
	 
	 	 
	Regular Dividend:

	 	Initially USD $0.06 per Share per quarter in respect of
the Shares. In the event that, in any quarter, a
regular quarterly Ex-Dividend Date occurs for which the
amount of the corresponding cash dividend is different
(the “New Dividend Amount”) from the Regular Dividend or
no Ex-Dividend Date occurs (in which case the New
Dividend Amount shall be zero), then following the
adjustment by the Calculation Agent pursuant to
“Dividends” above, the Regular Dividend shall equal the
New Dividend Amount.
	 
	 	 
	Extraordinary Dividends:

	 	Any dividend other than Regular Dividends. For the
avoidance of doubt, if more than one Ex-Dividend Date
occurs in a quarter, the Calculation Agent shall
designate any cash dividend other than a Regular
Dividend as an Extraordinary Dividend and will, in ,
adjust the Strike Price, the Number of Warrants, the
Daily Number of Warrants, the Warrant Entitlement and
any other variable to preserve the fair value of the
Warrant after taking into account such dividend.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Consequences of Merger
Events:

	 	(a) Share-for-Share: Cancellation and Payment
(Calculation Agent Determination)
	 
	 	 
	 

	 	(b) Share-for-Other: Cancellation and Payment
(Calculation Agent Determination)
	 
	 	 
	 

	 	(c) Share-for-Combined: Cancellation and Payment
(Calculation Agent Determination)
	 
	 	 
	Tender Offer:

	 	Applicable
	 
	 	 
	Consequences of Tender
Offers:

	 	(a) Share-for-Share: Modified Calculation Agent
Adjustment
	 
	 	 
	 

	 	(b) Share-for-Other: Cancellation and Payment
(Calculation Agent Determination)
	 
	 	 
	 

	 	(b) Share-for-Combined: Component Adjustment
	 
	 	 
	 

	 	With respect to any Extraordinary Events hereunder, upon
the occurrence of Cancellation and Payment in whole or
in part, the parties agree that the amount to

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	 	be paid,
in accordance with the Equity Definitions, shall
constitute a Transaction Early Termination Amount,
subject to satisfaction by the payment or delivery of
Shares or cash as set forth in the Early Termination
section below.
	 
	 	 
	Nationalization, 

Insolvency or Delisting:

	 	Cancellation and Payment (Calculation Agent
Determination) (subject to satisfaction by payment or
delivery of Shares or cash as set forth in “Early
Termination” below). In addition to the provisions of
Section 12.6(a)(iii) of the Equity Definitions, it will
also constitute a Delisting if the Shares are not listed
on a United States national securities exchange or
approved for quotation and trading on a national
automated dealer quotation system or established
automated over-the-counter trading market in the United
States or ceases to be so traded or quoted in
contemplation of a delisting or withdrawal of approval;
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.
	 
	 	 
	Determining Party:

	 	Dealer
	 
	 	 
	Additional Disruption 

Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable
	 
	 	 
	Failure to Deliver:

	 	Not Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Hedging Disruption:

	 	Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Not Applicable
	 
	 	 
	Loss of Stock Borrow:

	 	Applicable. Section 12.9(b)(iv) of the Equity
Definitions is hereby amended by deleting the text from
and including “(A)” to and including “(B)” and by
deleting the words “in each case”.
	 
	 	 
	Maximum Stock Loan Rate:

	 	 0.60%

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	Increased Cost of Stock
Borrow:

	 	Applicable; provided that it shall be a condition
to Counterparty’s right to make the election
described in clause (C) of Section 12.9(b)(v) of
the Equity Definitions that on the date of such
election, none of Counterparty, its directors,
executive officers, or any person controlling, or
exercising influence over, its decision to make
such election is in possession of any material
non-public information with respect to
Counterparty or the Shares; and provided further
that, if Counterparty timely makes the election
described in clause (A) or (B) of Section 12.9(b)(v) of the Equity Definitions,
Counterparty shall thereafter remain entitled,
subject to the foregoing condition, to terminate
the Transaction pursuant to Section 12.9(b)(v)(C)
of the Equity Definitions upon ten Scheduled
Trading Days’ notice to Dealer. Section 12.9(b)(v) of the Equity Definitions is hereby
amended by deleting the text from and including
“(X)” to and including “(Y)”.
	 
	 	 
	Initial Stock Loan Rate:

	 	 0.25%
	 
	 	 
	Hedging Party:

	 	Dealer
	 
	 	 
	Determining Party:

	 	Dealer
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and
	 	 
	 
	 	 
	Acknowledgments Regarding
	 	 
	Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	Other Provisions:
	 	 
	 
	 	 
	Additional Agreements:

	 	If Counterparty would be obligated to pay cash to
Dealer pursuant to the terms of this Confirmation
or the Agreement for any reason without having
had the right (other than pursuant to this
paragraph) to elect to deliver Shares in
satisfaction of such payment obligation, then
Counterparty may elect to deliver to Dealer a
number of Shares (whether registered or
unregistered) having a cash value equal to the
amount of such payment obligation. Such number
of Shares to be delivered shall be the number of
Shares, determined by the Calculation Agent,
sufficient for Dealer to realize the cash
equivalent of such payment obligation from
proceeds of the sale of such number of Shares
over a reasonable period of time taking into
account any applicable discount (determined in a
commercially reasonable manner) to reflect any
restrictions on transfer as well as the market
value of the Shares. Settlement relating to any
delivery of Shares pursuant to this paragraph
shall occur within a reasonable period of time.
The number of Shares delivered pursuant to this
paragraph shall not exceed the Maximum
Deliverable Share Amount and shall be subject to
the provisions under “Early Termination” hereof
regarding Proceeds Amount and the provisions set
forth in subsection (c) under “Additional
Agreements, Representations and Covenants of
Counterparty, Etc.” below.
	 
	 	 
	Early Termination:

	 	Notwithstanding any provision to the contrary,
upon the designation of an Early Termination Date
or the occurrence of Cancellation and Payment in
whole or in part hereunder, Counterparty’s
payment obligation in respect of this Transaction
(which shall, in the case of an Early Termination
Date be determined in

Confirmation of OTC Warrant Transaction (amended)

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EXECUTION COPY

	 	 	 
	 

	 	accordance with Second
Method and Loss) (the “Transaction Early
Termination Amount”) may, at the option of
Counterparty, be satisfied by the delivery of a
number of Shares equal to the Transaction Early
Termination Amount divided by the Termination
Price (“Early Termination Stock Settlement”);
provided, however, that Counterparty must notify
Dealer of its election of Early Termination Stock
Settlement by the close of business on the day
that is two Exchange Business Days following the
day that the notice designating the Early
Termination Date, or notice that an Extraordinary
Event has resulted in the cancellation or
termination of the Transaction in whole or in
part, is effective. “Termination Price” means the
market value per Share on the Early Termination
Date, as determined by the Calculation Agent in a
commercially reasonable manner taking into
account any applicable discount to reflect any
restrictions on transfer.
	 
	 	 
	 

	 	A number of Shares calculated as being due in
respect of any Early Termination Stock Settlement
will be deliverable on the third Clearance System
Business Day following the date that notice
specifying the number of Shares deliverable is
effective; provided that, if Counterparty is
delivering Shares as a result of a Merger Event,
the Settlement Date for such delivery will be
immediately prior to the effective time of the
Merger Event and the Shares will be deemed
delivered at such time such that Dealer will be a
holder of the Shares prior to such effective
time. Section 6(d)(i) of the Agreement is hereby
amended by adding the following words after the
word “paid” in the fifth line thereof: “or any
delivery is to be made, as applicable.”
	 
	 	 
	 

	 	On or prior to the Early Termination Date or date
on which notice that an Extraordinary Event has
resulted in the cancellation or termination of
the Transaction in whole or in part is effective,
as applicable, if Early Termination Stock
Settlement is elected and if so requested by
Dealer upon advice of counsel, Counterparty shall
(subject to its right to make the election
described in the immediately succeeding
paragraph) enter into a registration rights
agreement with Dealer in form and substance
reasonably acceptable to Dealer which agreement
will contain among other things, customary
representations and warranties and
indemnification, restrictions on sales during
“blackout dates” as provided for in the
Registration Rights Agreement and shall satisfy
the conditions contained therein and Counterparty
shall file and diligently pursue to effectiveness
a Registration Statement pursuant to Rule 415
under the Securities Act. If and when such
Registration Statement shall have been declared
effective by the Securities and Exchange
Commission, Counterparty shall have made
available to Dealer such Prospectuses as Dealer
may reasonably request to comply with the
applicable prospectus delivery requirements for
the resale by Dealer of such number of Shares as
Dealer shall specify (or, if greater, the number
of Shares that Counterparty shall specify). Such
Registration Statement shall be effective and
Prospectus shall be current until the earliest of
the date on which (i) all Shares delivered by
Counterparty in connection with an Early
Termination Date have been sold, (ii) Dealer has
advised Counterparty that it no longer requires
that such Registration Statement be effective or
(iii) all remaining Shares could be sold by
Dealer without registration pursuant to Rule 144
promulgated under the Securities Act (the
“Termination Registration Period”). It is
understood that the Registration Statement and
Prospectus will cover a number of Shares equal to
the Number of Shares plus the aggregate number of
Shares (if any) reasonably estimated by Dealer to
be potentially deliverable by Counterparty in
connection with Early Termination Stock
Settlement hereunder, but in no event exceeding
the Maximum Deliverable Share Amount. On each day
during the Termination Registration Period
Counterparty shall represent that each of its
filings under the

Confirmation of OTC Warrant Transaction (amended)

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EXECUTION COPY

	 	 	 
	 

	 	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, they do not contain
any untrue statement of a material fact or
omission of a material fact required to be stated
therein or necessary to make the statements made,
in the light of the circumstances under which
they were made, not misleading.
	 
	 	 
	 

	 	If Counterparty elects not to deliver Shares
subject to an effective Registration Statement
(or if some or all of the Shares delivered cannot
be used to close out stock loans in the shares of
Counterparty entered into to establish or
maintain short positions by Dealer in connection
with this Transaction without a prospectus being
required by applicable law to be delivered to
such lender), the provisions of sub-paragraphs
(B) and (C) set forth above under “Conditions to
Net Physical Settlement” shall apply, mutatis
mutandis, as if the Net Physical Settlement
Amount were the Transaction Early Termination
Amount. In no event shall Counterparty be
required to deliver to Dealer a number of Shares
greater than the Maximum Deliverable Share
Amount.
	 
	 	 
	Compliance With Securities
Laws:

	 	Each party acknowledges that the offer and sale
of the Transaction to it is intended to be exempt
from registration under the Securities Act by
virtue of Section 4(2) thereof. Accordingly, each
party represents and warrants to the other party
that (i) it has the financial ability to bear the
economic risk of its investment in the
Transaction and is able to bear a total loss of
its investment, (ii) it is an “accredited
investor” as that term is defined in Regulation D
as promulgated under the Securities Act and (iii)
the disposition of the Transaction is restricted
under this Confirmation, the Securities Act and
state securities laws.
	 
	 	 
	 

	 	Counterparty further represents and warrants that:
	 
	 	 
	 

	 	(a) Counterparty is not entering into this
Transaction to create actual or apparent trading
activity in the Shares (or any security
convertible into or exchangeable for Shares) or
to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible
into or exchangeable for Shares);
	 
	 	 
	 

	 	(b) Counterparty represents and acknowledges that
as of the date hereof and without limiting the
generality of Section 13.1 of the Equity
Definitions, Dealer is not making any
representations or warranties with respect to the
treatment of the Transaction under FASB
Statements 149 or 150, EITF Issue No. 00-19 (or
any successor issue statements) or under FASB’s
Liabilities & Equity Project;
	 
	 	 
	 

	 	(c) Counterparty is not, and after giving effect
to the Transaction contemplated hereby, will not
be, an “investment company” as such term is
defined in the Investment Company Act of 1940, as
amended;
	 
	 	 
	 

	 	(d) As of the Trade Date and each date on which a
payment or delivery is made by Counterparty
hereunder, (i) the assets of Counterparty at
their fair valuation exceed the liabilities of
Counterparty, including contingent liabilities;
(ii) the capital of Counterparty is adequate to
conduct its business; and (iii) Counterparty has
the ability to pay its debts and other
obligations as such obligations mature and does
not intend to, or believe that it will, incur
debt or other obligations beyond its ability to
pay as such obligations mature.
	 
	 	 
	Account Details:

	 	Account for payments to Counterparty:

          To be advised

Confirmation of OTC Warrant Transaction (amended)

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EXECUTION COPY

	 	 	 
	 

	 	Account for payments to Dealer:

          To be advised
	 
	 	 
	 

	 	Account for delivery of Shares to Dealer:

          To be advised.
	 
	 	 
	Agreement Regarding Shares:

	 	Counterparty agrees that, in respect of any
Shares delivered to Dealer, such Shares shall be,
upon such delivery, duly and validly authorized,
issued and outstanding, fully paid and
non-assessable and subject to no adverse claims
of any other party. The issuance of such Shares
does not and will not require the consent,
approval, authorization, registration or
qualification of any government authority, except
such as shall have been obtained on or before the
delivery date of any Shares or as may be required
in connection with any Registration Statement
filed with respect to any Shares.
	 
	 	 
	Bankruptcy Rights:

	 	In the event of Counterparty’s bankruptcy,
Dealer’s rights in connection with this
Transaction shall not exceed those rights held by
common shareholders. For the avoidance of doubt,
the parties acknowledge and agree that Dealer’s
rights with respect to any other claim arising
from this Transaction prior to Counterparty’s
bankruptcy shall remain in full force and effect
and shall not be otherwise abridged or modified
in connection herewith.
	 
	 	 
	Set-Off:

	 	Each party waives any and all rights it may have
to set-off, whether arising under any agreement,
applicable law or otherwise.
	 
	 	 
	Transfer:

	 	Neither party may transfer its rights or delegate
its obligations under this Transaction without
the prior written consent of the other party,
except that Dealer, after payment in full of the
Premium, may assign its rights and delegate its
obligations hereunder, in whole or in part, to
any other person (an “Assignee”) without the
prior consent of the Counterparty, effective (the
“Transfer Effective Date”) upon delivery to
Counterparty of an executed acceptance and
assumption by the Assignee (an “Assumption”) of
the transferred obligations of Dealer under this
Transaction (the “Transferred Obligations”).
Notwithstanding any other provision in this
Confirmation to the contrary requiring or
allowing Dealer to purchase, sell, receive or
deliver any Shares or other securities to or from
Counterparty, Dealer may designate any of its
affiliates to purchase, sell, receive or deliver
such Shares or other securities and otherwise to
perform Dealer’s obligations in respect of this
Transaction and any such designee may assume such
obligations. Dealer shall be discharged of its
obligations to Counterparty to the extent of any
such performance.
	 
	 	 
	Indemnity:

	 	Seller agrees to indemnify Dealer, its Affiliates
and their respective directors, officers, agents
and controlling parties (each such person being
an “Indemnified Party”) from and against any and
all losses, claims, damages and liabilities,
joint and several, to which such Indemnified
Party may become subject because of a breach of
any representation or covenant hereunder, in the
Agreement or any other agreement relating to the
Agreement or Transaction and will reimburse
Indemnified Party for all reasonable expenses
(including reasonable legal fees and expenses) as
they are incurred in connection with the
investigation of, preparation for, or defense of,
any pending or threatened claim or any action or
proceeding arising therefrom, whether or not such
Indemnified Party is a party thereto. Seller will
not be liable under the foregoing Indemnity
provision to the extent that any loss, claim,
damage, liability or expense is found in a final
judgment by a court to have resulted from
Dealer’s gross negligence or willful misconduct.

Confirmation of OTC Warrant Transaction (amended)

-13-

 

Additional Agreements, Representations and Covenants of Counterparty, Etc.: 

	(a)	 	Counterparty hereby represents and warrants to Dealer, on each day from the Trade Date to and
including the earlier of (i) July 29, 2007 (ii) the date by which Dealer is able to initially
complete a hedge of its position created by this Transaction, that:

	 	(1)	 	it will not, and will not permit any person or entity subject to its control
to, bid for or purchase Shares during such period except pursuant to transactions or
arrangements which have been approved by Dealer or an affiliate of Dealer; and
	 
	 	(2)	 	it has publicly disclosed all material information necessary for it to be able
to purchase or sell Shares in compliance with applicable federal securities laws.

	(b)	 	No collateral shall be required by either party for any reason in connection with this
Transaction.
	 
	(c)	 	Notwithstanding anything to the contrary herein, Dealer shall not be entitled to exercise any
Warrant or receive any Shares deliverable hereunder, and Automatic Exercise shall not apply
with respect to any Warrant to the extent (but only to the extent) that after such receipt of
any Shares upon the exercise of such Warrant or otherwise hereunder Dealer, or its ultimate
parent entity would, directly or indirectly, be the beneficial owner (as such term is defined
for purposes of Section 13(d) of the Exchange Act) at any time of more than 8.0 percent of the
class of the Counterparty’s outstanding equity securities that is comprised of the Shares (an
“Excess Share Owner”).
	 
	 	 	Dealer shall provide prior notice to Counterparty if the exercise of any Warrant or delivery
of Shares hereunder would cause Dealer to become directly or indirectly, an Excess Share
Owner; provided that the failure of Dealer to provide such notice shall not alter the
effectiveness of the provisions set forth in the preceding sentence and any purported
exercise or delivery in violation of such provisions shall be void and have no effect. If any
delivery owed to Dealer hereunder is not made, in whole or in part, as a result of this
provision, Counterparty’s obligation to make such delivery shall not be extinguished and
Counterparty shall make such delivery as promptly as practicable after Dealer gives notice
that such delivery would not result in Dealer being an Excess Share Owner.
	 
	 	 	If Dealer is not entitled to exercise any Warrant because such exercise would cause Dealer to
become, directly or indirectly, an Excess Share Owner and Dealer thereafter disposes of
Shares owned by it or any action is taken that would then permit Dealer to exercise such
Warrant without such exercise causing it to become, directly or indirectly, an Excess Share
Owner, then Dealer shall provide notice of the taking of such action to Counterparty and such
Warrant shall then become exercisable by Dealer to the extent such Warrant is otherwise or
had otherwise become exercisable hereunder. In such event, the Expiration Date with respect
to such Warrant shall be the date on which Counterparty receives such notice from Dealer, and
the related Settlement Date shall be as soon as reasonably practicable after receipt of such
notice but no more than three (3) Exchange Business Days thereafter (but in no event shall
the Settlement Date occur prior to the date on which it would have otherwise occurred but for
the provisions of this subsection); provided that the related Net Physical Settlement
Amount shall be the same as the Net Physical Settlement Amount but for the provisions of this
subsection. In addition, within 30 calendar days of any Settlement Date, Counterparty shall
use its reasonable efforts to refrain from activities that could reasonably be expected to
result in Dealer’s ownership of Shares exceeding 10% of all issued and outstanding Shares.

Matters Relating to Agent: 

	1.	 	Agent will be responsible for the operational aspects of the Transactions effected through
it, such as record keeping, reporting, and confirming Transactions to Counterparty and Dealer;

Confirmation
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-14-

 

	2.	 	Unless Counterparty is a “major U.S. institutional investor,” as defined in Rule 15a-6 of the
Exchange Act, neither Counterparty nor Dealer will contact the other without the direct
involvement of Agent;

	3.	 	Agent’s sole role under this Agreement and with respect to any Transaction is as an agent of
Counterparty and Dealer on a disclosed basis and Agent shall have no responsibility or
liability to Counterparty or Dealer hereunder except for gross negligence or willful
misconduct in the performance of its duties as agent. Agent is authorized to act as agent for
Dealer, but only to the extent expressly required to satisfy the requirements of Rule 15a-6
under the Exchange Act in respect of the Options described hereunder. Agent shall have no
authority to act as agent for Counterparty generally or with respect to transactions or other
matters governed by this Agreement, except to the extent expressly required to satisfy the
requirements of Rule 15a-6 or in accordance with express instructions from Counterparty.

Certain Important Information:

MLFM is an OTC Derivatives Dealer registered with the U.S. Securities and Exchange Commission
(SEC). Applicable SEC rules require us to provide you with the following information regarding SEC
regulation of OTC Derivatives Dealers: MLFM is exempt from the provisions of the Securities
Investor Protection Act of 1970 (SIPA), including membership in the Securities Investor Protection
Corporation (SIPC). Therefore, your Merrill Lynch account is not covered by SIPA protection. Except
as otherwise agreed in writing by you and us, MLFM may repledge and otherwise use in its business
collateral you have pledged to MLFM under the Agreement. Collateral you have pledged to MLFM will
not be subject to the requirements of Securities Exchange Act Rules: 8c-1 and 15c2-1 regarding
hypothecation of collateral; 15c3-2 regarding free credit balances; or 15c3-3 regarding custody of
securities and calculations of a reserve formula applicable to a fully regulated SEC registered
broker or dealer. In the event of MLFM’s failure (by insolvency or otherwise), you would likely be
considered to be an unsecured creditor of MLFM as to any collateral pledged to MLFM under the
Agreement.

MLFM is incorporated in Delaware and is a direct, wholly owned subsidiary of ML&Co. MLFM has
entered into this transaction as principal through Merrill Lynch, Pierce, Fenner & Smith
Incorporated as its agent. The time of this Transaction shall be notified to the Counterparty upon
request.

ISDA Master Agreement: 

With respect to the Agreement, Dealer and Counterparty each agree as follows:

“Specified Entity” means in relation to Seller and in relation to Counterparty for purposes of this
Transaction: Not applicable.

The definition of “Specified Transaction” in Section 14 of this Agreement is hereby amended by
adding the text “commodity transaction, credit derivative transaction, repurchase or reverse
purchase transaction, securities lending transaction, futures transaction, prime brokerage or
margin lending transaction” after the words “foreign exchange transaction” in the sixth line
thereof and by replacing the words “any other similar transaction” in the eighth line thereof with
the text “any other transaction between the parties”. “Specified Transaction” shall exclude any
default under a Specified Transaction if caused solely by the general unavailability of the
currency in which payments under such Specified Transaction are denominated due to exchange
controls or other governmental action.

The “Cross Default” provisions of Section 5(a)(vi) of the Agreement will not apply to
Seller and will apply to Counterparty.

“Threshold Amount” means, with respect to Counterparty, $50,000,000

The “Credit Event Upon Merger” provisions of Section 5(b)(iv) of the Agreement will not
apply to Dealer or to Counterparty.

Additional Termination Event.

Confirmation
of OTC Warrant Transaction (amended)

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The occurrence of any of the following shall constitute an Additional Termination Event with
respect to which the Transaction shall be the sole Affected Transaction and Issuer shall be the
sole Affected Party; provided that with respect to any Additional Termination Event, Dealer may
choose to treat part of the Transaction as the sole Affected Transaction, and, upon the termination
of the Affected Transaction, a Transaction with terms identical to those set forth herein except
with a Number of Warrants equal to the unaffected number of Warrants shall be treated for all
purposes as the Transaction, which shall remain in full force and effect:

     (i) within the period commencing on the Trade Date and ending on the second anniversary
of the Premium Payment Date, Buyer reasonably determines that it is advisable to terminate a
portion of the Transaction so that Buyer’s related hedging activities will comply with
applicable securities laws, rules or regulations;

     (ii) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that a person shall be deemed to have beneficial ownership of all
            shares that such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of voting stock
representing 50% or more of the total voting power of all outstanding voting stock of the
Issuer;

     (iii) the Issuer consolidates with, or merges with or into, another person or the Issuer
sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all
of its assets to any person, other than any such transaction where immediately after such
transaction the person or persons that “beneficially owned” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act) immediately prior to such transaction, directly or indirectly,
voting stock representing a majority of the total voting power of all outstanding voting stock
of the Issuer, “beneficially own or owns” (as so determined), directly or indirectly, voting
stock representing a majority of the total voting power of the outstanding voting stock of the
surviving or transferee person;

     (iv) during any consecutive two-year period, the Continuing Directors cease for any
reason to constitute a majority of the board of directors of the Issuer. “Continuing
Directors” means, as of any date of determination, any member of the board of directors of the
Issuer who was (a) a member of such board of directors on the Effective Date or (b) nominated
for election or elected to such board of directors with the approval of a majority of the
Continuing Directors who were members of such board at the time of such nomination or
election; or

     (v) the adoption of a plan of liquidation or dissolution of the Issuer.

     Notwithstanding the foregoing, a transaction set forth in clause (ii), (iii) or (iv) above
will not constitute an Additional Termination Event if 100% of the consideration for the Shares
(excluding cash payments for fractional shares and cash payments made in respect of dissenters’
appraisal rights) in such transaction or transactions consists of common stock and any associated
rights listed on a United States national securities exchange or quoted on a national automated
dealer quotation system, or which will be so traded or quoted when issued or exchanged in
connection with such transaction or transactions otherwise constituting an Additional Termination
Event under clauses (ii), (iii) or (iv) above.

The “Automatic Early Termination” provision of Section 6(a) of the Agreement will not apply
to Dealer or to Counterparty.

Payments on Early Termination. For the purpose of Section 6(e) of the Agreement: (i) Loss
shall apply; and (ii) the Second Method shall apply.

“Termination Currency” means USD.

Tax Representations.

	(I)	 	Payer Representations. For the purpose of Section 3(e) of the Agreement, each party
represents to the other party that it is not required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the other
party under the Agreement. In making this representation, each

Confirmation
of OTC Warrant Transaction (amended)

-16-

 

	 	 	party may rely on (i) the accuracy of any representations made by the other party pursuant
to Section 3(f) of the Agreement, (ii) the satisfaction of the agreement contained in
Section 4(a)(i) or 4(a)(iii) of the Agreement, and the accuracy and effectiveness of any
document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of the
Agreement, and (iii) the satisfaction of the agreement of the other party contained in
Section 4(d) of the Agreement; provided that it will not be a breach of this
representation where reliance is placed on clause (ii) above and the other party does not
deliver a form or document under Section 4(a)(iii) of the Agreement by reason of material
prejudice to its legal or commercial position.
	 
	(II)	 	Payee Representations. For the purpose of Section 3(f) of the Agreement, each party makes the
following representations to the other party:

	 	(i)	 	Dealer represents that it is a company incorporated in Delaware.
	 
	 	(ii)	 	Counterparty represents that it is a corporation incorporated in Oregon.

	 	 	Delivery Requirements. For the purpose of Sections 4(a)(i) and (ii) of the
Agreement, each party agrees to deliver the following documents:
	 
	(a)	 	Tax forms, documents or certificates to be delivered are:
	 
	 	 	Dealer agrees to complete (accurately and in a manner reasonably satisfactory to
Counterparty), execute, and deliver to Counterparty, United States Internal Revenue Service
Form W-9 and all required attachments, or any successor of such form(s): (i) before the
first payment date under this agreement; (ii) promptly upon reasonable demand by
Counterparty; and (iii) promptly upon learning that any such Form previously provided by
Dealer has become obsolete or incorrect.
	 
	 	 	Counterparty agrees to complete (accurately and in a manner reasonably satisfactory to
Dealer), execute, and deliver to Dealer, United States Internal Revenue Service Form W-9 or
W-8 BEN, or any successor of such form(s): (i) before the first payment date under this
agreement; (ii) promptly upon reasonable demand by Dealer; and (iii) promptly upon learning
that any such form(s) previously provided by Counterparty has become obsolete or incorrect.
	 
	(b)	 	Other documents to be delivered:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by
	Party Required to	 	 	 	 	 	Section 3(d)
	Deliver Document	 	Document Required to be Delivered	 	When Required	 	Representation
	Counterparty

	 	Evidence of the authority and true
signatures of each official or
representative signing this
Confirmation
	 	Upon or before execution
and delivery of this
Confirmation
	 	Yes
	 
	 	 	 	 	 	 
	Counterparty

	 	Certified copy of the resolution of the
Board of Directors or equivalent
document authorizing the execution and
delivery of this Confirmation and such
other certificate or certificates as
Dealer shall reasonably request
	 	Upon or before execution
and delivery of this
Confirmation
	 	Yes
	 
	 	 	 	 	 	 
	Dealer

	 	Guarantee of its Credit Support
Provider,
	 	Upon or before
	 	No
	 

	 	substantially in the
form of Exhibit A attached
hereto
	 	execution
and delivery of this
Confirmation	 	 

Confirmation of OTC Warrant Transactin (amended)

-17-

 

Addresses for Notices: For the purpose of Section 12(a) of the Agreement:

Address for notices or communications to MLFM for all purposes:

	 	 	 
	Address:

	 	 Merrill Lynch Financial Markets, Inc.
	 

	 	 4 World Financial Center, 17th Floor
	 

	 	 New York, New York 10080
	 

	 	 Merrill Lynch Financial Centre
	Attention:

	 	 Manager of Equity Documentation
	Facsimile No.:

	 	 (917) 778-0835
	Telephone No.:

	 	 (212) 449-1951

Address for notices or communications to Counterparty for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	 14200 SW Karl Braun Drive
	 

	 	 	 	 Beaverton, OR 97077
	 

	 	Attention:
	 	 Treasurer
	 

	 	Facsimile No.:
	 	 503-627-6108
	 

	 	Telephone No.:
	 	 503-627-4622

In addition, in the case of notices or communications relating to Section 5, 6, 11 or 13 of
this Agreement, a second copy of any such notice or communication shall be addressed to the
attention of Counterparty’s General Counsel as follows:

	 	 	 	 	 
	 

	 	Address:
	 	 14200 SW Karl Braun Drive
	 

	 	 	 	 Beaverton, OR 97077
	 

	 	Attention:
	 	 General Counsel
	 

	 	Facsimile No.:
	 	 503-627-7474
	 

	 	Telephone No.:
	 	 503-627-6777

Multibranch Party. For the purpose of Section 10(c) of the Agreement: Neither Dealer nor
Counterparty is a Multibranch Party.

Calculation Agent. “Calculation Agent” means Dealer, acting in good faith and in a commercially
reasonable manner.

Credit Support Document.

Dealer: Guarantee of Merrill Lynch & Co., Inc. in the form attached hereto as
Exhibit A

Counterparty: Not Applicable

Credit Support Provider.

With respect to Dealer: Merrill Lynch & Co., Inc.

With respect to Counterparty: Not Applicable.

Confirmation
of OTC Warrant Transaction (amended)

-18-

 

Governing Law. This Confirmation will be governed by, and construed in accordance with, the laws of
the State of New York.

Submission to Jurisdiction. Each party hereby irrevocably and unconditionally submits for itself
and its property in any legal action or proceeding by the other party against it relating to the
Transaction to which it is a party, or for recognition and enforcement of any judgment in respect
thereof, to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in
New York County, the courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

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 this
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 this Transaction, as applicable, by, among other
things, the mutual waivers and certifications provided herein.

Netting of Payments. The provisions of Section 2(c) of the Agreement shall not be
applicable to this Transaction.

Basic Representations. Section 3(a) of the Agreement is hereby amended by the deletion of
“and” at the end of Section 3(a)(iv); the substitution of a semicolon for the period at the
end of Section 3(a)(v) and the addition of Sections 3(a)(vi), as follows:

Eligible Contract Participant; Line of Business. Each party agrees and represents that it is
an “eligible contract participant” as defined in Section 1 (a)(12) of the U.S. Commodity
Exchange Act, as amended (“CEA”), this Agreement and the Transaction thereunder are subject
to individual negotiation by the parties and have not been executed or traded on a “trading
facility” as defined in Section 1(a)(33) of the CEA, and it has entered into this
Confirmation and this Transaction in connection with its business or a line of business
(including financial intermediation), or the financing of its business.

Acknowledgements:

	(a)	 	The parties acknowledge and agree that there are no other representations, agreements or
other undertakings of the parties in relation to this Transaction, except as set forth in the
Agreement or this Confirmation.

(b) The parties hereto intend for:

	 	(i)	 	Buyer to be a “financial institution” as defined in Section 101(22) of Title 11
of the United States Code (the “Bankruptcy Code”) and this Transaction to be a
“securities contract” as defined in Section 741(7) of the Bankruptcy Code and a “swap
agreement” as defined in Section 101(53C) of the Bankruptcy Code, qualifying for the
protections of, among other sections, Sections 362(b)(6), 362 (b)(17), 546(e), 546(g),
555 and 560 of the Bankruptcy Code;
	 
	 	(ii)	 	a party’s right to liquidate this Transaction and to exercise any other
remedies upon the occurrence of any Event of Default under the Agreement with respect
to the other party to constitute a “contractual right” as defined in the Bankruptcy
Code;
	 
	 	(iii)	 	all payments for, under or in connection with this Transaction, all payments
for the Shares and the transfer of such Shares to constitute “settlement payments” as
defined in the Bankruptcy Code.

	(c)	 	The parties acknowledge and agree that in the event of an Early Termination Date as a result
of an Event of Default that is within Counterparty’s control, the amount payable under the
Agreement will be a cash amount calculated as described therein and that any delivery
specified in this Transaction will no longer be required.

Confirmation
of OTC Warrant Transaction (amended)

-19-

 

Amendment of Section 6(d)(ii). Section 6(d)(ii) of the Agreement is modified by deleting
the words “on the day” in the second line thereof and substituting therefor “on the day that is
three Local Business Days after the day”. Section 6(d)(ii) is further modified by deleting
the words “two Local Business Days” in the fourth line thereof and substituting therefor “three
Local Business Days.”

Consent to Recording. Each party consents to the recording of the telephone conversations of
trading and marketing personnel of the parties and their Affiliates in connection with this
Confirmation. To the extent that one party records telephone conversations (the “Recording Party”)
and the other party does not (the “Non-Recording Party”), the Recording Party shall in the event of
any dispute, make a complete and unedited copy of such party’s tape of the entire day’s
conversations with the Non-Recording Party’s personnel available to the Non-Recording Party. The
Recording Party’s tapes may be used by either party in any forum in which a dispute is sought to be
resolved and the Recording Party will retain tapes for a consistent period of time in accordance
with the Recording Party’s policy unless one party notifies the other that a particular transaction
is under review and warrants further retention.

Disclosure. Each party hereby acknowledges and agrees that Dealer has authorized Counterparty to
disclose this Transaction and any related hedging transaction between the parties if and to the
extent that Counterparty reasonably determines (after consultation with Dealer) that such
disclosure is required by law or by the rules of the New York Stock Exchange or any securities
exchange. Notwithstanding the foregoing, effective from the date of commencement of discussions
concerning the Transaction, Counterparty and each of its employees, representatives, or other
agents may disclose to any and all persons, without limitation of any kind, the tax treatment and
tax structure of the Transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to Counterparty relating to such tax treatment and tax structure.

Severability. If any term, provision, covenant or condition of this Confirmation, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable in
whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Confirmation had been executed with the invalid
or unenforceable provision eliminated, so long as this Confirmation as so modified continues to
express, without material change, the original intentions of the parties as to the subject matter
of this Confirmation and the deletion of such portion of this Confirmation will not substantially
impair the respective benefits or expectations of parties to this Agreement; provided, however,
that this severability provision shall not be applicable if any provision of Section 2,
5, 6 or 13 of the Agreement (or any definition or provision in Section
14 to the extent that it relates to, or is used in or in connection with any such Section)
shall be so held to be invalid or unenforceable.

Affected Parties. For purposes of Section 6(e) of the Agreement, each party shall be deemed
to be an Affected Party in connection with Illegality and any Tax Event.

[Signatures follow on separate page]

Confirmation
of OTC Warrant Transaction (amended)

-20-

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing
the company of this Confirmation enclosed for that purpose and returning it to us.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH INTERNATIONAL	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ FRAN JACOBSON	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Fran Jacobson	 	 
	 	 	Title:	 	Vice President	 	 
	 	 	 	 	Equity Derivatives Documentation	 	 

Confirmed as of the date first above written:

	 	 	 	 	 	 	 
	TEKTRONIX, INC.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ JAMES F. DALTON	 	 
	 	 	 	 	 
	Name:	 	James F. Dalton	 	 
	Title:	 	Senior Vice President,	 	 
	 

	 	 	 	General Counsel, and Secretary	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 

Acknowledged and agreed as to matters to the Agent:

	 	 	 	 	 	 	 
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATE,	 	  
	Solely in its capacity as Agent hereunder	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ ANGELINA LOPES	 	 
	 	 	 	 	 
	Name:	 	Angelina Lopes	 	 
	Title:	 	Derivatives Documentation	 	 

Confirmation
OTC Warrant (amended)

 

EXHIBIT A

GUARANTEE OF MERRILL LYNCH & CO., INC.

     FOR VALUE RECEIVED, receipt of which is hereby acknowledged, MERRILL LYNCH & CO., INC., a
corporation duly organized and existing under the laws of the State of Delaware (“ML & Co.”),
hereby unconditionally guarantees to Tektronix, Inc. (the “Company”), the due and punctual payment
of any and all amounts payable by Merrill Lynch Financial Markets, Inc., a company incorporated in
Delaware (“ML”), under the terms of the Confirmation of OTC Warrant Transaction between the
Company and ML (ML as Buyer), amended and restated as of June 29, 2007 (the “Confirmation”),
including, in case of default, interest on any amount due, when and as the same shall become due
and payable, whether on the scheduled payment dates, at maturity, upon declaration of termination
or otherwise, according to the terms thereof. In case of the failure of ML punctually to make any
such payment, ML & Co. hereby agrees to make such payment, or cause such payment to be made,
promptly upon demand made by the Company to ML & Co.; provided, however that delay by the Company
in giving such demand shall in no event affect ML & Co.’s obligations under this Guarantee. This
Guarantee shall remain in full force and effect or shall be reinstated (as the case may be) if at
any time any payment guaranteed hereunder, in whole or in part, is rescinded or must otherwise be
returned by the Company upon the insolvency, bankruptcy or reorganization of ML or otherwise, all
as though such payment had not been made.

     ML & Co. hereby agrees that its obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Confirmation; the absence of any action to
enforce the same; any waiver or consent by the Company concerning any provisions thereof; the
rendering of any judgment against ML or any action to enforce the same; or any other circumstances
that might otherwise constitute a legal or equitable discharge of a guarantor or a defense of a
guarantor. ML covenants that this guarantee will not be discharged except by complete payment of
the amounts payable under the Confirmation. This Guarantee shall continue to be effective if ML
merges or consolidates with or into another entity, loses its separate legal identity or ceases to
exist.

     ML & Co. hereby waives diligence; presentment; protest; notice of protest, acceleration, and
dishonor; filing of claims with a court in the event of insolvency or bankruptcy of ML; all demands
whatsoever, except as noted in the first paragraph hereof; and any right to require a proceeding
first against ML.

     ML & Co. hereby certifies and warrants that this Guarantee constitutes the valid obligation of
ML & Co. and complies with all applicable laws.

     This Guarantee shall be governed by, and construed in accordance with, the laws of the State
of New York.

     This Guarantee may be terminated at any time by notice by ML & Co. to the Company given in
accordance with the notice provisions of the Confirmation, effective upon receipt of such notice by
the Company or such later date as may be specified in such notice; provided, however, that this
Guarantee shall continue in full force and effect with respect to any obligation of ML under the
Confirmation.

     This Guarantee becomes effective concurrent with the effectiveness of the Confirmation,
according to its terms.

OTC Warrant Guarantee (amended)

 

     IN WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in its corporate
name by its duly authorized representative.

	 	 	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH & CO., INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ JOAN E. TIMOLDI	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Joan E. Timoldi	 	 
	 	 	Title:	 	Designated Signatory	 	 
	 	 	Date:	 	June 28, 2007	 	 

Guarantee
OTC Warrant (amended)exv10w5

 

Exhibit 10.5

Confirmation of OTC Warrant Transaction

	 	 	 
	Date:

	 	 June 29, 2007
	To:

	 	 Tektronix, Inc. (“Counterparty”)
	 

	 	 Attention: Treasurer
	 

	 	 Telephone No.: 503-627-4622
	 

	 	 Facsimile No.: 503-627-6108
	 
	 	 
	From:

	 	 Citibank N.A. (“Dealer” or “Citibank”)
	 

	 	 250 West Street
	 

	 	 10th Floor
	 

	 	 New York, New York 10013
	 

	 	 Attention: Director Derivatives Operations
	 

	 	 Facsimile No.: 212 723 2956

Reference:

Dear Sir / Madam:

     The purpose of this letter agreement (this “Confirmation”) is to amend and restate
the terms and conditions of the above-referenced transaction entered into among Counterparty and
Dealer on the Trade Date specified below (the “Transaction”). This Confirmation amends,
restated and supersedes in its entirety the Confirmation in respect of the Transaction dated as of
June 25, 2007. This Confirmation constitutes a “Confirmation” as referred to in the Agreement
specified below.

     The definitions and provisions contained in the 2000 ISDA Definitions (the “Swap
Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions” and, together with the Swap Definitions, the “Definitions”), in each case
as published by the International Swaps and Derivatives Association, Inc., are incorporated into
this Confirmation. In the event of any inconsistency between the Swap Definitions and the Equity
Definitions, the Equity Definitions will govern, and in the event of any inconsistency between the
Definitions and this Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Share Option Transaction” for the purposes of
the Equity Definitions and to a “Swap Transaction” for the purposes of the Swap Definitions. For
purposes of this Transaction, “Warrant Style”, “Warrant Type”, “Number of Warrants” and “Warrant
Entitlement” (each as defined below) shall be used herein as if such terms were referred to as
“Option Style”, “Option Type”, “Number of Options” and “Option Entitlement”, respectively, in the
Definitions.

     This Confirmation evidences a complete binding agreement between you and us as to the terms of
the Transaction to which this Confirmation relates. This Confirmation (notwithstanding anything to
the contrary herein), shall be subject to, and form part of, an agreement in the 1992 form of the
ISDA Master Agreement (Multicurrency Cross Border) (the “Master Agreement” or
“Agreement”) as if we had executed an agreement in such form (but without any Schedule and
with elections specified in the “ISDA Master Agreement” Section of this Confirmation) on the Trade
Date. In the event of any inconsistency between the provisions of that Agreement and this
Confirmation, this Confirmation will prevail for the purpose of this Transaction. The parties
hereby agree that the Transaction evidenced by this Confirmation shall be the only Transaction
subject to and governed by the Agreement.

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

Confirmation OTC Warrant

 

 

EXECUTION COPY

General Terms: 

	 	 	 
	Trade Date:

	 	June 25, 2007
	 
	 	 
	Effective Date:

	 	June 29, 2007, subject to cancellation of the OTC
Warrant Transaction prior to 5:00 p.m. (New York City
time) on such date by the Counterparty. In the event of
such cancellation, any payments previously made
hereunder, including the Premium, shall be returned to
the person making such payment. In addition,
Counterparty shall reimburse Dealer for any costs or
expenses (including market losses) relating to the
unwinding of its hedging activities in connection with
the Transaction (including any loss or cost incurred as
a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position).
	 
	 	 
	Warrant Style:

	 	European, subject to “Procedures for Exercise” below.
	 
	 	 
	Warrant Type:

	 	Call
	 
	 	 
	Seller:

	 	Counterparty
	 
	 	 
	Buyer:

	 	Dealer
	 
	 	 
	Shares:

	 	Shares of common stock, without par value, of
Counterparty (Security Symbol: “TEK”).
	 
	 	 
	Number of Warrants:

	 	 1,735,612
	 
	 	 
	Daily Number of Warrants:

	 	For any day, the unexercised Number of Warrants on such
day divided by the remaining number of Expiration Dates
(including such day) and rounded down to the nearest
whole number, with the balance of the Number of Warrants
exercised on the final Expiration Date.
	 
	 	 
	Warrant Entitlement:

	 	One (1) Share per Warrant
	 
	 	 
	Strike Price:

	 	 $ 49.2623
	 
	 	 
	Premium:

	 	 $8,797,500
	 
	 	 
	Premium Payment Date:

	 	The Effective Date; provided no cancellation of the
Transaction has occurred prior to 5:00 p.m. (New York
City time) on such date by the Counterparty.
	 
	 	 
	Exchange:

	 	New York Stock Exchange
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Full Exchange Business Day:

	 	A Scheduled Trading Day that has a scheduled closing
time for its regular trading session at 4:00 p.m. (New
York City time) or the then standard closing time for
regular trading on the Exchange and is not a Disrupted
Day.
	 
	 	 
	Procedures for Exercise:

	 	 
	 
	 	 
	Expiration Time:

	 	 11:59 p.m. (New York City time).

OTC Warrant Confirmation (amended)

- 2 -

 

	 	 	 	 	 	 	 
	Expiration Dates:	 	The 100 consecutive Full Exchange Business Days
beginning on and including October 15, 2012 each shall
be the Expiration Date for a number of Warrants equal to
the Daily Number of Warrants on such date.
Notwithstanding the foregoing and anything to the
contrary in the Equity Definitions or in the definition
of “Full Exchange Business Day,” if a Market Disruption
Event occurs on any Expiration Date (the “Relevant
Day”), the Calculation Agent may determine that such
Expiration Date, while not a Full Exchange Business Day,
is a Disrupted Day only in part, in which case the
Calculation Agent shall make adjustments to the Daily
Number of Warrants for the Relevant Day and shall
designate an additional Expiration Date following the
last previously scheduled Expiration Date as the
Expiration Date for a number of Warrants equal to the
difference between the Daily Number of Warrants
determined for the Relevant Day without such adjustment,
and the Daily Number of Warrants for such date as
adjusted pursuant to this paragraph. Section 6.6 of the
Equity Definitions shall not apply to any Valuation Date
occurring on an Expiration Date.
	 
	 	 	 	 	 	 
	Exercise Dates:	 	Each Expiration Date shall be an Exercise Date for a
number of Warrants equal to the Daily Number of Warrants
for such date.
	 
	 	 	 	 	 	 
	Automatic Exercise:	 	Applicable, and means that the Daily Number of Warrants
for the corresponding Expiration Date will be deemed to
be automatically exercised at the Expiration Time on
such Expiration Date unless Buyer notifies Seller (by
telephone or in writing) prior to the Expiration Time on
such Expiration Date that it does not wish Automatic
Exercise to occur, in which case Automatic Exercise will
not apply to such Expiration Date.
	 
	 	 	 	 	 	 
	Counterparty’s Telephone

	 	 	 	Address:
	 	 14200 SW Karl Braun Drive
	Number and Telex and/or

	 	 	 	 	 	 Beaverton, OR 97077
	Facsimile Number and

	 	 	 	Attention:
	 	 Treasurer
	Contact Details for

	 	 	 	Facsimile No.:
	 	 503-627-6108
	purpose of Giving Notice:

	 	 	 	Telephone No.:
	 	 503-627-4622
	 
	 	 	 	 	 	 
	Valuation:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Valuation Dates:	 	Each Exercise Date
	 
	 	 	 	 	 	 
	Settlement Terms:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Cash Settlement:	 	Applicable; provided that it shall be a condition of
Counterparty’s right to elect Cash Settlement that on
the date of the Cash Settlement election, none of
Counterparty, its directors, executive officers, or any
person controlling, or exercising influence over, its
decision to elect Cash Settlement is in possession of
any material non-public information with respect to
Counterparty or the Shares. If Counterparty elects to
settle the Transaction by Cash Settlement, Counterparty
represents and agrees that:
	 
	 	 	 	 	 	 
	 	 	(i) Counterparty is not, on the date of the Cash
Settlement election, and will not be, on any day during
the period from and including the first Expiration Date
to and including the final Expiration Date, engaged in a
distribution, as such term is used in Regulation M under
the Securities Exchange Act of 1934, as amended (the
“Exchange Act”); and
	 
	 	 	 	 	 	 
	 	 	(ii) during the period from and including the first
Expiration Date to and

OTC Warrant Confirmation (amended)

- 3 -

 

	 	 	 
	 

	 	including the final Expiration
Date, without the prior written consent of Dealer, the
Counterparty shall not, and shall cause its affiliates
and affiliated purchasers (each as defined in Rule
10b-18 under the Exchange Act) not to, directly or
indirectly (including, without limitation, by means of a
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 equivalent interest, including a unit of
beneficial interest in a trust or limited partnership or
a depository share) or any security convertible into or
exchangeable for the Shares.
	 
	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Settlement Price:

	 	For each Valuation Date, the Volume Weighted Average
Price of the Shares (“VWAP”) calculated from 9:45 a.m.
to 3:45 p.m., as observed under the heading Bloomberg
“VWAP” on Bloomberg page TEK.N <equity> VAP (or
any successor thereto) (or if such volume-weighted
average price is unavailable, the market value of one
Share on such Valuation Date, as determined by the
Calculation Agent); provided that if the scheduled
weekday closing time of the Exchange for any Valuation
Date is later than 4:00 p.m. (without regard to after
hours or any other trading outside of the regular
trading session hours) the VWAP shall be calculated for
such Valuation Date from 9:45 a.m. until 15 minutes
prior to such later closing time of the Exchange. 

Section 6.3(a) of the Equity Definitions is hereby
amended by replacing clause (ii) in its entirety with
“(ii) an Exchange Disruption, or” and inserting
immediately following clause (iii) the phrase “; in each
case that the Calculation Agent determines is material.”
	 
	 	 
	Cash Settlement Payment 

Date:

	 	With respect to each Valuation Date, three (3) Currency
Business Days after the final Valuation Date.
	 
	 	 
	Settlement Method Election:

	 	Applicable; provided that references in Section 7.1 of
the Equity Definitions to “Physical Settlement” shall be
replaced by references to “Net Physical Settlement.”
	 
	 	 
	Electing Party:

	 	Counterparty
	 
	 	 
	Settlement Method Election 

Date:

	 	Ten (10) Business Days prior to the first Expiration Date
	 
	 	 
	Default Settlement Method:

	 	Net Physical Settlement.
	 
	 	 
	Net Physical Settlement:

	 	In the event that the Counterparty elects to settle this
Transaction by Net Physical Settlement, subject to
“Conditions of Net Physical Settlement” below,
Counterparty shall deliver to Dealer on the Settlement
Date a number of Shares (the “Delivered Shares”) equal
to the Share Delivery Quantity, provided that in the
event that the number of Shares calculated comprises any
fractional Share, only whole Shares shall be delivered
and an amount in cash equal to the value of such
fractional share shall be payable by the Counterparty to
Dealer in lieu of such fractional Share.
	 
	 	 
	Share Delivery Quantity:

	 	For each Exercise Date, a number of Shares, as
calculated by the Calculation Agent, equal to the Net
Physical Settlement Amount for such Exercise Date

OTC Warrant Confirmation (amended)

- 4 -

 

	 	 	 	 	 
	 	 	divided by the Settlement Price on the Valuation Date in
respect of such Settlement Date plus an amount in cash
in lieu of any fractional shares (based on the
applicable Settlement Price).
	 
	 	 	 	 
	Net Physical Settlement 

Amount:	 	For any Exercise Date, an amount equal to the product of
(i) the Number of Warrants being exercised on the
relevant Exercise Date, (ii) the Strike Price
Differential for such Exercise Date and (iii) the
Warrant Entitlement.
	 
	 	 	 	 
	Strike Price Differential:	 	For any Valuation Date, (i) if the Settlement Price is
greater than the Strike Price, an amount equal to the
excess of such Settlement Price over the Strike Price
for such Valuation Date or (ii) if such Settlement Price
is less than or equal to the Strike Price, zero.
	 
	 	 	 	 
	Settlement Date:	 	Settlement with respect to each Exercise Date shall
occur on the third (3rd) Full Exchange Business Day
following the final Valuation Date, provided that Dealer
shall have the right to request by prior written notice
to Counterparty a Settlement Date with respect to any
Exercise Date and the related Share Delivery Quantity
that is three (3) Full Exchange Business Days following
such Exercise Date. Such request shall not unreasonably
be denied.
	 
	 	 	 	 
	Conditions to Net Physical
Settlement:	 	If, in connection with or six months following delivery
of Shares hereunder, Dealer notifies the Counterparty
that Dealer has reasonably determined after advice from
counsel that there is a considered risk that such Shares
are subject to restrictions on transfer in the hands of
Dealer pursuant to the rules and regulations promulgated
under the Securities Act of 1933, as amended (the
“Securities Act”), then Counterparty shall either (i)
deliver Shares that are covered by an effective
registration statement of Counterparty for immediate
resale by Dealer or (ii) agree to deliver additional
Shares so that the value of such Shares as determined by
the Calculation Agent to reflect an appropriate
liquidity discount, equals the value of the number of
Shares that would otherwise be deliverable if such
Shares were freely tradable upon receipt by Dealer.
	 
	 	 	 	 
	 	 	(A) If Counterparty elects to deliver Shares as
described in above clause (i), then promptly following
such notification from Dealer
	 
	 	 	 	 
	 

	 	 	 	(a) Counterparty shall afford Dealer a reasonable
opportunity to conduct a due diligence investigation
with respect to Counterparty that is customary in scope
for underwritten offerings of equity securities that
yields a result reasonably satisfactory to Dealer;
	 
	 	 	 	 
	 

	 	 	 	(b) Counterparty shall promptly make available to Dealer
an effective registration statement for immediate resale
(the “Registration Statement”) in form and content
reasonably satisfactory to Dealer and filed pursuant to
Rule 415 under the Securities Act, and such prospectuses
as Dealer may reasonably request to comply with the
applicable prospectus delivery requirements (the
“Prospectus”) for the resale by Dealer of such number of
Shares as Dealer shall reasonably specify in accordance
with this paragraph, such Registration Statement to be
effective and Prospectus to be current until the
earliest of the date on which (1) all Delivered Shares
have been sold by Dealer, (2) Dealer has advised
Counterparty that it no longer requires that such
Registration Statement be effective, (3) all remaining
Delivered Shares could be sold by Dealer without
registration pursuant to Rule 144 promulgated under the
Securities Act (the “Registration Period”) or (4)
Counterparty has provided a legal opinion in form and
substance satisfactory to Dealer

OTC Warrant Confirmation (amended)

- 5 -

 

	 	 	 	 	 
	 

	 	 	 	(with customary
assumptions and exceptions) that the Shares issuable
upon exercise of these Warrants will be freely
tradable
under the Securities Act upon delivery to Dealer and not
subject to any legend restricting transferability. It is
understood that the Registration Statement and
Prospectus will cover a number of Shares equal to the
aggregate number of Shares (if any) reasonably estimated
by Dealer to be potentially deliverable by Counterparty
in connection with Net Physical Settlement hereunder
(not to exceed the Maximum Deliverable Share Amount) and
shall be subject to the same suspension of sales during
“blackout dates” as provided in the following paragraph.
Clause (B)(c) below shall apply mutatis mutandis in the
event of any blackout dates occurring during Dealer’s
selling efforts during the Registration Period; and
	 
	 	 	 	 
	 

	 	 	 	(c) Counterparty will enter into a registration rights
agreement with Dealer in form and substance reasonably
acceptable to Dealer, which agreement will contain among
other things, customary representations and warranties
and indemnification, restrictions on sales during
“blackout dates” as provided for in the registration
rights agreement (the “Registration Rights Agreement”)
entered into by Counterparty on or about the date
hereof, provide for delivery of comfort letters and
opinions of counsel and other rights relating to the
registration of a number of Shares equal to the number
of Delivered Shares and other Shares deliverable
hereunder up to the Maximum Deliverable Share Amount.
	 
	 	 	 	 
	 	 	(B) If Counterparty elects to deliver Shares as
described in above clause (ii), then promptly following
such notification from Dealer
	 
	 	 	 	 
	 

	 	 	 	(a) Counterparty shall afford Dealer and any potential
institutional purchaser of any Shares identified by
Dealer a reasonable opportunity to conduct a due
diligence investigation with respect to Counterparty
that is customary in scope for private placements of
equity securities subject to execution of any customary
confidentiality agreements;
	 
	 	 	 	 
	 

	 	 	 	(b) Counterparty shall enter into an agreement (a
“Private Placement Agreement”) with Dealer on
commercially reasonable terms in connection with the
private placement of such Shares (including any
additional Shares pursuant to clause (c) below) by
Counterparty to Dealer or an affiliate and the private
resale of such shares by Dealer or such affiliate,
substantially similar to private placement purchase
agreements customary for private placements of equity
securities, in form and substance commercially
reasonably satisfactory to Dealer and Counterparty,
which Private Placement Agreement shall include
provisions relating to the indemnification of, and
contribution in connection with the liability of, Dealer
and its affiliates, shall provide for the payment by
Counterparty of all expenses in connection with such
resale, including all reasonable and documented fees and
expenses of counsel for Dealer, shall contain
representations, warranties and agreements of
Counterparty reasonably necessary or advisable to
establish and maintain the availability of an exemption
from the registration requirements of the Securities Act
for such resales, and shall use reasonable best efforts
to provide for the delivery of accountants’ “comfort
letters” to Dealer or such affiliate with respect to the
financial statements and certain financial information
contained in or incorporated

OTC Warrant Confirmation (amended)

- 6 -

 

	 	 	 	 	 
	 

	 	 	 	by reference into the
offering memorandum prepared for the resale of such
Shares;
	 
	 	 	 	 
	 

	 	 	 	(c) Dealer shall sell the Delivered Shares in a
commercially reasonable manner until the amount received
by Dealer for the sale of the Shares (the “Proceeds
Amount”) is equal to the Net Physical Settlement Amount.
Any remaining Delivered Shares shall be returned to
Counterparty. If the Proceeds Amount is less than the
Net Physical Settlement Amount, Counterparty shall
promptly deliver upon notice from Dealer additional
Shares to Dealer until the dollar amount from the sale
of such Shares by Dealer equals the difference between
the Net Physical Settlement Amount and the Proceeds
Amount. In no event shall Counterparty be required to
deliver to Dealer a number of Shares greater than the
Maximum Deliverable Share Amount.
	 
	 	 	 	 
	 	 	(C) Notwithstanding the foregoing: (I) if Counterparty
has elected to deliver Shares as described in clause (i)
above and either (a) Counterparty does not provide for
the sale of the Shares under the Registration Statement
as provided in the Registration Rights Agreement or (b)
some Shares cannot be registered under the Registration
Statement due to Rule 415(a)(4) under the Securities
Act, then the provisions of sub-paragraph (B) shall
apply to the extent Counterparty has not satisfied its
obligations hereunder by the delivery of Shares pursuant
to sub-paragraph (A). (II) If sub-paragraph (B) is
applicable and Counterparty fails to satisfy its
obligations under such sub-paragraph (B), then
Counterparty may deliver unregistered Shares of
equivalent value to the Net Physical Settlement Amount
(or, if applicable, the unsatisfied portion thereof).
The value of any unregistered Shares so delivered shall
be discounted to reflect an appropriate liquidity
discount (determined by Dealer in a commercially
reasonable manner, taking into account Dealer’s policies
and determinations with respect to any transfer
restrictions that Dealer deems it advisable to observe
in connection with sales of such Shares). (III) If some
or all of the Delivered Shares cannot be used to close
out stock loans in the shares of Counterparty entered
into to establish or maintain short positions by Dealer
in connection with this Transaction without a prospectus
being required by applicable law to be delivered to such
lender, then the value of any such Delivered Shares
shall reflect the cost (determined by Dealer in good
faith and in a commercially reasonable manner) to Dealer
of trading Shares in order to close out its hedge
position if any, in all cases for purposes of
calculating the Delivered Shares. In no event shall
Counterparty be required to top-up the delivery in cash.
	 
	 	 	 	 
	Limitations on Net 

Physical Settlement by 

Counterparty:	 	Notwithstanding anything herein or in the Agreement to
the contrary, the number of Shares that may be delivered
at settlement by Counterparty shall not exceed 2,603,418
at any time (“Maximum Deliverable Share Amount”), as
adjusted by Calculation Agent to account for any
subdivision, stock-split, stock combination,
reclassification, certain distributions, dividends and
payments to holders of Counterparty’s common stock or
similar dilutive or anti-dilutive event with respect to
the Shares.
	 
	 	 	 	 
	 	 	Counterparty represents and warrants that the number of
Available Shares as of the Trade Date is greater than
the Maximum Deliverable Share Amount. Counterparty
covenants and agrees that (i) Counterparty shall not
take any action of corporate governance or otherwise to
reduce the number of Available Shares below the Maximum
Deliverable Share Amount and (ii) Counterparty shall use
its reasonable efforts to cause the number of Available
Shares at all times to be greater than the Maximum
Deliverable Share Amount.

OTC Warrant Confirmation (amended)

- 7 -

 

	 	 	 
	 

	 	For this purpose, “Available Shares” means the number of
Shares Counterparty currently has authorized (but not
issued and outstanding) less the maximum number of
Shares that may be required to be issued by Counterparty
in connection with stock options, convertibles, and
other commitments of Counterparty that may require the
issuance or delivery of Shares in connection therewith.
	 
	 	 
	Dividends:
	 	 
	 
	 	 
	Dividends:

	 	If at any time during the period from and including the
Trade Date, to but excluding the final Expiration Date,
an ex-dividend date for a cash dividend occurs with
respect to the Shares (an “Ex-Dividend Date”), and that
dividend is different from the Regular Dividend on a per
Share basis, then the Calculation Agent will adjust the
Strike Price, the Number of Warrants, the Daily Number
of Warrants, the Warrant Entitlement and any other
variable to preserve the fair value of the Warrant after
taking into account such dividend.
	 
	 	 
	Regular Dividend:

	 	Initially USD $0.06 per Share per quarter in respect of
the Shares. In the event that, in any quarter, a
regular quarterly Ex-Dividend Date occurs for which the
amount of the corresponding cash dividend is different
(the “New Dividend Amount”) from the Regular Dividend or
no Ex-Dividend Date occurs (in which case the New
Dividend Amount shall be zero), then following the
adjustment by the Calculation Agent pursuant to
“Dividends” above, the Regular Dividend shall equal the
New Dividend Amount.
	 
	 	 
	Extraordinary Dividends:

	 	Any dividend other than Regular Dividends. For the
avoidance of doubt, if more than one Ex-Dividend Date
occurs in a quarter, the Calculation Agent shall
designate any cash dividend other than a Regular
Dividend as an Extraordinary Dividend and will adjust
the Strike Price, the Number of Warrants, the Daily
Number of Warrants, the Warrant Entitlement and any
other variable to preserve the fair value of the Warrant
after taking into account such dividend.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Consequences of Merger
Events:

	 	(a) Share-for-Share: Cancellation and Payment
(Calculation Agent Determination)

(b) Share-for-Other: Cancellation and Payment
(Calculation Agent Determination)

(c) Share-for-Combined: Cancellation and Payment
(Calculation Agent Determination)
	 
	 	 
	Tender Offer:

	 	Applicable
	 
	 	 
	Consequences of Tender
Offers:

	 	(a) Share-for-Share: Modified
Calculation Agent Adjustment
	 
	 	 
	 

	 	(b) Share-for-Other: Cancellation and Payment
(Calculation Agent Determination)
	 
	 	 
	 

	 	(b) Share-for-Combined: Component Adjustment

OTC Warrant Confirmation (amended)

- 8 -

 

	 	 	 
	 

	 	With respect to any Extraordinary Events hereunder, upon
the occurrence of Cancellation and Payment in whole or
in part, the parties agree that the amount to be paid,
in accordance with the Equity Definitions, shall
constitute a Transaction Early Termination Amount,
subject to satisfaction by the payment or delivery of
Shares or cash as set forth in the Early Termination
section below.
	 
	 	 
	Nationalization, 

Insolvency or Delisting:

	 	Cancellation and Payment (Calculation Agent
Determination) (subject to satisfaction by payment or
delivery of Shares or cash as set forth in “Early
Termination” below). In addition to the provisions of
Section 12.6(a)(iii) of the Equity Definitions, it will
also constitute a Delisting if the Shares are not listed
on a United States national securities exchange or
approved for quotation and trading on a national
automated dealer quotation system or established
automated over-the-counter trading market in the United
States or ceases to be so traded or quoted in
contemplation of a delisting or withdrawal of approval;
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.
	 
	 	 
	Determining Party:

	 	Dealer
	 
	 	 
	Additional Disruption 

Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable
	 
	 	 
	Failure to Deliver:

	 	Not Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Hedging Disruption:

	 	Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Not Applicable
	 
	 	 
	Loss of Stock Borrow:

	 	Applicable. Section 12.9(b)(iv) of the Equity
Definitions is hereby amended by deleting the text from
and including “(A)” to and including “(B)” and by
deleting the words “in each case”.
	 
	 	 
	Maximum Stock Loan Rate:

	 	 0.60%

OTC Warrant Confirmation (amended)

- 9 -

 

	 	 	 
	Increased Cost of Stock
Borrow:

	 	Applicable; provided that it shall be a condition
to Counterparty’s right to make the election
described in clause (C) of Section 12.9(b)(v) of
the Equity Definitions that on the date of such
election, none of Counterparty, its directors,
executive officers, or any person controlling, or
exercising influence over, its decision to make
such election is in possession of any material
non-public information with respect to
Counterparty or the Shares; and provided further
that, if Counterparty timely makes the election
described in clause (A) or (B) of Section
12.9(b)(v) of the Equity Definitions,
Counterparty shall thereafter remain entitled,
subject to the foregoing condition, to terminate
the Transaction pursuant to Section 12.9(b)(v)(C)
of the Equity Definitions upon ten Scheduled
Trading Days’ notice to Dealer. Section
12.9(b)(v) of the Equity Definitions is hereby
amended by deleting the text from and including
“(X)” to and including “(Y)”.
	 
	 	 
	Initial Stock Loan Rate:

	 	 0.25%
	 
	 	 
	Hedging Party:

	 	Dealer
	 
	 	 
	Determining Party:

	 	Dealer
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and
	 	 
	Acknowledgments Regarding
	 	 
	Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	Other Provisions:
	 	 
	 
	 	 
	Additional Agreements:

	 	If Counterparty would be obligated to pay cash to
Dealer pursuant to the terms of this Confirmation
or the Agreement for any reason without having
had the right (other than pursuant to this
paragraph) to elect to deliver Shares in
satisfaction of such payment obligation, then
Counterparty may elect to deliver to Dealer a
number of Shares (whether registered or
unregistered) having a cash value equal to the
amount of such payment obligation. Such number
of Shares to be delivered shall be the number of
Shares, determined by the Calculation Agent,
sufficient for Dealer to realize the cash
equivalent of such payment obligation from
proceeds of the sale of such number of Shares
over a reasonable period of time taking into
account any applicable discount (determined in a
commercially reasonable manner) to reflect any
restrictions on transfer as well as the market
value of the Shares. Settlement relating to any
delivery of Shares pursuant to this paragraph
shall occur within a reasonable period of time.
The number of Shares delivered pursuant to this
paragraph shall not exceed the Maximum
Deliverable Share Amount and shall be subject to
the provisions under “Early Termination” hereof
regarding Proceeds Amount and the provisions set
forth in subsection (c) under “Additional
Agreements, Representations and Covenants of
Counterparty, Etc.” below.
	 
	 	 
	Early Termination:

	 	Notwithstanding any provision to the contrary,
upon the designation of an Early Termination Date
or the occurrence of Cancellation and Payment in
whole or in part hereunder, Counterparty’s
payment obligation in respect of this Transaction
(which shall, in the case of an Early Termination
Date be determined in

OTC Warrant Confirmation (amended)

- 10 -

 

	 	 	 
	 

	 	accordance with Second
Method and Loss) (the “Transaction Early
Termination Amount”) may, at the option of
Counterparty, be satisfied by the delivery of a
number of Shares equal to the Transaction Early
Termination Amount divided by the Termination
Price (“Early Termination Stock Settlement”);
provided, however, that Counterparty must notify
Dealer of its election of Early Termination Stock
Settlement by the close of business on the day
that is two Exchange Business Days following the
day that the notice designating the Early
Termination Date, or notice that an Extraordinary
Event has resulted in the cancellation or
termination of the Transaction in whole or in
part, is effective. “Termination Price” means the
market value per Share on the Early Termination
Date, as determined by the Calculation Agent in a
commercially reasonable manner taking into
account any applicable discount to reflect any
restrictions on transfer.
	 
	 	 
	 

	 	A number of Shares calculated as being due in
respect of any Early Termination Stock Settlement
will be deliverable on the third Clearance System
Business Day following the date that notice
specifying the number of Shares deliverable is
effective; provided that, if Counterparty is
delivering Shares as a result of a Merger Event,
the Settlement Date for such delivery will be
immediately prior to the effective time of the
Merger Event and the Shares will be deemed
delivered at such time such that Dealer will be a
holder of the Shares prior to such effective
time. Section 6(d)(i) of the Agreement is hereby
amended by adding the following words after the
word “paid” in the fifth line thereof: “or any
delivery is to be made, as applicable.”
	 
	 	 
	 

	 	On or prior to the Early Termination Date or date
on which notice that an Extraordinary Event has
resulted in the cancellation or termination of
the Transaction in whole or in part is effective,
as applicable, if Early Termination Stock
Settlement is elected and if so requested by
Dealer upon advice of counsel, Counterparty shall
(subject to its right to make the election
described in the immediately succeeding
paragraph) enter into a registration rights
agreement with Dealer in form and substance
reasonably acceptable to Dealer which agreement
will contain among other things, customary
representations and warranties and
indemnification, restrictions on sales during
“blackout dates” as provided for in the
Registration Rights Agreement and shall satisfy
the conditions contained therein and Counterparty
shall file and diligently pursue to effectiveness
a Registration Statement pursuant to Rule 415
under the Securities Act. If and when such
Registration Statement shall have been declared
effective by the Securities and Exchange
Commission, Counterparty shall have made
available to Dealer such Prospectuses as Dealer
may reasonably request to comply with the
applicable prospectus delivery requirements for
the resale by Dealer of such number of Shares as
Dealer shall specify (or, if greater, the number
of Shares that Counterparty shall specify). Such
Registration Statement shall be effective and
Prospectus shall be current until the earliest of
the date on which (i) all Shares delivered by
Counterparty in connection with an Early
Termination Date have been sold, (ii) Dealer has
advised Counterparty that it no longer requires
that such Registration Statement be effective or
(iii) all remaining Shares could be sold by
Dealer without registration pursuant to Rule 144
promulgated under the Securities Act (the
“Termination Registration Period”). It is
understood that the Registration Statement and
Prospectus will cover a number of Shares equal to
the Number of Shares plus the aggregate number of
Shares (if any) reasonably estimated by Dealer to
be potentially deliverable by Counterparty in
connection with Early Termination Stock
Settlement hereunder, but in no event exceeding
the Maximum Deliverable Share Amount. On each day
during the Termination Registration Period
Counterparty shall represent that each of its
filings under the

OTC Warrant Confirmation (amended)

- 11 -

 

	 	 	 
	 

	 	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, they do not contain
any untrue statement of a material fact or
omission of a material fact required to be stated
therein or necessary to make the statements made,
in the light of the circumstances under which
they were made, not misleading.
	 
	 	 
	 

	 	If Counterparty elects not to deliver Shares
subject to an effective Registration Statement
(or if some or all of the Shares delivered cannot
be used to close out stock loans in the shares of
Counterparty entered into to establish or
maintain short positions by Dealer in connection
with this Transaction without a prospectus being
required by applicable law to be delivered to
such lender), the provisions of sub-paragraphs
(B) and (C) set forth above under “Conditions to
Net Physical Settlement” shall apply, mutatis
mutandis, as if the Net Physical Settlement
Amount were the Transaction Early Termination
Amount. In no event shall Counterparty be
required to deliver to Dealer a number of Shares
greater than the Maximum Deliverable Share
Amount.
	 
	 	 
	Compliance With Securities Laws:

	 	Each party acknowledges that the offer and sale
of the Transaction to it is intended to be exempt
from registration under the Securities Act by
virtue of Section 4(2) thereof. Accordingly, each
party represents and warrants to the other party
that (i) it has the financial ability to bear the
economic risk of its investment in the
Transaction and is able to bear a total loss of
its investment, (ii) it is an “accredited
investor” as that term is defined in Regulation D
as promulgated under the Securities Act and (iii)
the disposition of the Transaction is restricted
under this Confirmation, the Securities Act and
state securities laws.
	 
	 	 
	 

	 	Counterparty further represents and warrants that:
	 
	 	 
	 

	 	(a) Counterparty is not entering into this
Transaction to create actual or apparent trading
activity in the Shares (or any security
convertible into or exchangeable for Shares) or
to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible
into or exchangeable for Shares);
	 
	 	 
	 

	 	(b) Counterparty represents and acknowledges that
as of the date hereof and without limiting the
generality of Section 13.1 of the Equity
Definitions, Dealer is not making any
representations or warranties with respect to the
treatment of the Transaction under FASB
Statements 149 or 150, EITF Issue No. 00-19 (or
any successor issue statements) or under FASB’s
Liabilities & Equity Project;
	 
	 	 
	 

	 	(c) Counterparty is not, and after giving effect
to the Transaction contemplated hereby, will not
be, an “investment company” as such term is
defined in the Investment Company Act of 1940, as
amended;
	 
	 	 
	 

	 	(d) As of the Trade Date and each date on which a
payment or delivery is made by Counterparty
hereunder, (i) the assets of Counterparty at
their fair valuation exceed the liabilities of
Counterparty, including contingent liabilities;
(ii) the capital of Counterparty is adequate to
conduct its business; and (iii) Counterparty has
the ability to pay its debts and other
obligations as such obligations mature and does
not intend to, or believe that it will, incur
debt or other obligations beyond its ability to
pay as such obligations mature.
	 
	 	 
	Account Details:

	 	Account for payments to Counterparty:
	 

	 	          To be advised

OTC Warrant Confirmation (amended)

- 12 -

 

	 	 	 
	 

	 	Account for payments to Dealer:
	 

	 	     Citibank N.A., New York
	 

	 	     Swift Code: CITIUS33
	 

	 	     ABA: 021000089
	 

	 	     A/C 00167679
	 
	 	 
	 

	 	Account for delivery of Shares to Dealer:
	 

	 	     To be advised.
	 
	 	 
	Agreement Regarding Shares:

	 	Counterparty agrees that, in respect of any
Shares delivered to Dealer, such Shares shall be,
upon such delivery, duly and validly authorized,
issued and outstanding, fully paid and
non-assessable and subject to no adverse claims
of any other party. The issuance of such Shares
does not and will not require the consent,
approval, authorization, registration or
qualification of any government authority, except
such as shall have been obtained on or before the
delivery date of any Shares or as may be required
in connection with any Registration Statement
filed with respect to any Shares.
	 
	 	 
	Bankruptcy Rights:

	 	In the event of Counterparty’s bankruptcy,
Dealer’s rights in connection with this
Transaction shall not exceed those rights held by
common shareholders. For the avoidance of doubt,
the parties acknowledge and agree that Dealer’s
rights with respect to any other claim arising
from this Transaction prior to Counterparty’s
bankruptcy shall remain in full force and effect
and shall not be otherwise abridged or modified
in connection herewith.
	 
	 	 
	Set-Off:

	 	Each party waives any and all rights it may have
to set-off, whether arising under any agreement,
applicable law or otherwise.
	 
	 	 
	Transfer:

	 	Neither party may transfer its rights or delegate
its obligations under this Transaction without
the prior written consent of the other party,
except that Dealer, after payment in full of the
Premium, may assign its rights and delegate its
obligations hereunder, in whole or in part, to
any other person (an “Assignee”) without the
prior consent of the Counterparty, effective (the
“Transfer Effective Date”) upon delivery to
Counterparty of an executed acceptance and
assumption by the Assignee (an “Assumption”) of
the transferred obligations of Dealer under this
Transaction (the “Transferred Obligations”).
Notwithstanding any other provision in this
Confirmation to the contrary requiring or
allowing Dealer to purchase, sell, receive or
deliver any Shares or other securities to or from
Counterparty, Dealer may designate any of its
affiliates to purchase, sell, receive or deliver
such Shares or other securities and otherwise to
perform Dealer’s obligations in respect of this
Transaction and any such designee may assume such
obligations. Dealer shall be discharged of its
obligations to Counterparty to the extent of any
such performance.
	 
	 	 
	 

	 	Notwithstanding any provision of the Agreement to
the contrary, Buyer shall be entitled to assign
its rights and obligations hereunder to make or
receive cash payments and transfer of Shares and
other related rights to one or more entities that
are wholly-owned, directly or indirectly, by
Citigroup Inc., or any successor thereto (each, a
“Citibank Affiliate”); provided that Seller shall
have recourse to Buyer in the event of the
failure by a Citibank Affiliate to perform any of
such obligations hereunder. Notwithstanding the
foregoing, recourse to Buyer shall be limited to
recoupment of Seller’s monetary damages and
Seller hereby waives any right to seek specific
performance by Buyer of its obligations

OTC Warrant Confirmation (amended)

- 13 -

 

	 	 	 
	 

	 	hereunder. Such failure after any applicable
grace period shall be an Additional Termination
Event with the Transaction to which the failure
relates as the sole Affected Transaction and
Buyer as the sole Affected Party.
	 
	 	 
	Indemnity:

	 	Seller agrees to indemnify Dealer, its Affiliates
and their respective directors, officers, agents
and controlling parties (each such person being
an “Indemnified Party”) from and against any and
all losses, claims, damages and liabilities,
joint and several, to which such Indemnified
Party may become subject because of a breach of
any representation or covenant hereunder, in the
Agreement or any other agreement relating to the
Agreement or Transaction and will reimburse
Indemnified Party for all reasonable expenses
(including reasonable legal fees and expenses) as
they are incurred in connection with the
investigation of, preparation for, or defense of,
any pending or threatened claim or any action or
proceeding arising therefrom, whether or not such
Indemnified Party is a party thereto. Seller will
not be liable under the foregoing Indemnity
provision to the extent that any loss, claim,
damage, liability or expense is found in a final
judgment by a court to have resulted from
Dealer’s gross negligence or willful misconduct.

Additional Agreements, Representations and Covenants of Counterparty, Etc.: 

	(a)	 	Counterparty hereby represents and warrants to Dealer, on each day from the Trade Date to and
including the earlier of (i) July 29, 2007 (ii) the date by which Dealer is able to initially
complete a hedge of its position created by this Transaction, that:

	 	(1)	 	it will not, and will not permit any person or entity subject to its control
to, bid for or purchase Shares during such period except pursuant to transactions or
arrangements which have been approved by Dealer or an affiliate of Dealer; and
	 
	 	(2)	 	it has publicly disclosed all material information necessary for it to be able
to purchase or sell Shares in compliance with applicable federal securities laws.

	(b)	 	No collateral shall be required by either party for any reason in connection with this
Transaction.
	 
	(c)	 	Notwithstanding anything to the contrary herein, Dealer shall not be entitled to exercise any
Warrant or receive any Shares deliverable hereunder, and Automatic Exercise shall not apply
with respect to any Warrant to the extent (but only to the extent) that after such receipt of
any Shares upon the exercise of such Warrant or otherwise hereunder Dealer, or its ultimate
parent entity would, directly or indirectly, be the beneficial owner (as such term is defined
for purposes of Section 13(d) of the Exchange Act) at any time of more than 8.0 percent of the
class of the Counterparty’s outstanding equity securities that is comprised of the Shares (an
“Excess Share Owner”).
	 
	 	 	Dealer shall provide prior notice to Counterparty if the exercise of any Warrant or delivery
of Shares hereunder would cause Dealer to become directly or indirectly, an Excess Share
Owner; provided that the failure of Dealer to provide such notice shall not alter the
effectiveness of the provisions set forth in the preceding sentence and any purported
exercise or delivery in violation of such provisions shall be void and have no effect. If any
delivery owed to Dealer hereunder is not made, in whole or in part, as a result of this
provision, Counterparty’s obligation to make such delivery shall not be extinguished and
Counterparty shall make such delivery as promptly as practicable after Dealer gives notice
that such delivery would not result in Dealer being an Excess Share Owner.
	 
	 	 	If Dealer is not entitled to exercise any Warrant because such exercise would cause Dealer to
become, directly or indirectly, an Excess Share Owner and Dealer thereafter disposes of
Shares owned by it or any action is taken that would then permit Dealer to exercise such
Warrant without such exercise causing it to

OTC Warrant Confirmation (amended)

- 14 -

 

	 	 	become, directly or indirectly, an Excess Share Owner, then Dealer shall provide notice of
the taking of such action to Counterparty and such Warrant shall then become exercisable by
Dealer to the extent such Warrant is otherwise or had otherwise become exercisable hereunder.
In such event, the Expiration Date with respect to such Warrant shall be the date on which
Counterparty receives such notice from Dealer, and the related Settlement Date shall be as
soon as reasonably practicable after receipt of such notice but no more than three (3)
Exchange Business Days thereafter (but in no event shall the Settlement Date occur prior to
the date on which it would have otherwise occurred but for the provisions of this
subsection); provided that the related Net Physical Settlement Amount shall be the
same as the Net Physical Settlement Amount but for the provisions of this subsection. In
addition, within 30 calendar days of any Settlement Date, Counterparty shall use its
reasonable efforts to refrain from activities that could reasonably be expected to result in
Dealer’s ownership of Shares exceeding 10% of all issued and outstanding Shares.

ISDA Master Agreement: 

With respect to the Agreement, Dealer and Counterparty each agree as follows:

“Specified Entity” means in relation to Seller and in relation to Counterparty for purposes of this
Transaction: Not applicable.

The definition of “Specified Transaction” in Section 14 of this Agreement is hereby amended by
adding the text “commodity transaction, credit derivative transaction, repurchase or reverse
purchase transaction, securities lending transaction, futures transaction, prime brokerage or
margin lending transaction” after the words “foreign exchange transaction” in the sixth line
thereof and by replacing the words “any other similar transaction” in the eighth line thereof with
the text “any other transaction between the parties”. “Specified Transaction” shall exclude any
default under a Specified Transaction if caused solely by the general unavailability of the
currency in which payments under such Specified Transaction are denominated due to exchange
controls or other governmental action.

The “Cross Default” provisions of Section 5(a)(vi) of the Agreement will not apply to
Seller and will apply to Counterparty.

“Threshold Amount” means, with respect to Counterparty, $50,000,000.

The “Credit Event Upon Merger” provisions of Section 5(b)(iv) of the Agreement will not
apply to Dealer or to Counterparty.

Additional Termination Event.

The occurrence of any of the following shall constitute an Additional Termination Event with
respect to which the Transaction shall be the sole Affected Transaction and Issuer shall be the
sole Affected Party; provided that with respect to any Additional Termination Event, Dealer may
choose to treat part of the Transaction as the sole Affected Transaction, and, upon the termination
of the Affected Transaction, a Transaction with terms identical to those set forth herein except
with a Number of Warrants equal to the unaffected number of Warrants shall be treated for all
purposes as the Transaction, which shall remain in full force and effect:

     (i) within the period commencing on the Trade Date and ending on the second anniversary
of the Premium Payment Date, Buyer reasonably determines that it is advisable to terminate a
portion of the Transaction so that Buyer’s related hedging activities will comply with
applicable securities laws, rules or regulations;

     (ii) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that a person shall be deemed to have
beneficial ownership of all shares that such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of voting stock
representing 50% or more of the total voting power of all outstanding voting stock of the
Issuer;

     (iii) the Issuer consolidates with, or merges with or into, another person or the Issuer
sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all
of its assets to any person, other than

OTC Warrant Confirmation (amended)

- 15 -

 

any such transaction where immediately after such transaction the person or persons that
“beneficially owned” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) immediately
prior to such transaction, directly or indirectly, voting stock representing a majority of the
total voting power of all outstanding voting stock of the Issuer, “beneficially own or owns”
(as so determined), directly or indirectly, voting stock representing a majority of the total
voting power of the outstanding voting stock of the surviving or transferee person;

     (iv) during any consecutive two-year period, the Continuing Directors cease for any
reason to constitute a majority of the board of directors of the Issuer. “Continuing
Directors” means, as of any date of determination, any member of the board of directors of the
Issuer who was (a) a member of such board of directors on the Effective Date or (b) nominated
for election or elected to such board of directors with the approval of a majority of the
Continuing Directors who were members of such board at the time of such nomination or
election; or

     (v) the adoption of a plan of liquidation or dissolution of the Issuer.

Notwithstanding the foregoing, a transaction set forth in clause (ii), (iii) or (iv) above
will not constitute an Additional Termination Event if 100% of the consideration for the Shares
(excluding cash payments for fractional shares and cash payments made in respect of dissenters’
appraisal rights) in such transaction or transactions consists of common stock and any associated
rights listed on a United States national securities exchange or quoted on a national automated
dealer quotation system, or which will be so traded or quoted when issued or exchanged in
connection with such transaction or transactions otherwise constituting an Additional Termination
Event under clauses (ii), (iii) or (iv) above.

The “Automatic Early Termination” provision of Section 6(a) of the Agreement will not apply
to Dealer or to Counterparty.

Payments on Early Termination. For the purpose of Section 6(e) of the Agreement: (i) Loss
shall apply; and (ii) the Second Method shall apply.

“Termination Currency” means USD.

Tax Representations.

	(I)	 	Payer Representations. For the purpose of Section 3(e) of the Agreement, each party
represents to the other party that it is not required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the other
party under the Agreement. In making this representation, each party may rely on (i) the
accuracy of any representations made by the other party pursuant to Section 3(f) of the
Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
the Agreement, and the accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of the
agreement of the other party contained in Section 4(d) of the Agreement; provided that
it will not be a breach of this representation where reliance is placed on clause (ii) above
and the other party does not deliver a form or document under Section 4(a)(iii) of the
Agreement by reason of material prejudice to its legal or commercial position.

	(II)	 	Payee Representations. For the purpose of Section 3(f) of the Agreement, each party makes the
following representations to the other party:

(i) Dealer represents that it is a national banking association organized under the laws of
the United States and its U.S. taxpayer identification number is 13-5266470. It is “exempt”
within the meaning of Treasury Regulation sections 1.6041-3(p) and 1.6049-4(c) from information
reporting on Form 1099 and backup withholding.

(ii) Counterparty represents that it is a corporation incorporated in Oregon.

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	 	 	Delivery Requirements. For the purpose of Sections 4(a)(i) and (ii) of the
Agreement, each party agrees to deliver the following documents:
	 
	(a)	 	Tax forms, documents or certificates to be delivered are:
	 
	 	 	Dealer agrees to complete (accurately and in a manner reasonably satisfactory to
Counterparty), execute, and deliver to Counterparty, United States Internal Revenue Service
Form W-9 and all required attachments, or any successor of such form(s): (i) before the
first payment date under this agreement; (ii) promptly upon reasonable demand by
Counterparty; and (iii) promptly upon learning that any such Form previously provided by
Dealer has become obsolete or incorrect.
	 
	 	 	Counterparty agrees to complete (accurately and in a manner reasonably satisfactory to
Dealer), execute, and deliver to Dealer, United States Internal Revenue Service Form W-9 or
W-8 BEN, or any successor of such form(s): (i) before the first payment date under this
agreement; (ii) promptly upon reasonable demand by Dealer; and (iii) promptly upon learning
that any such form(s) previously provided by Counterparty has become obsolete or incorrect.
	 
	(b)	 	Other documents to be delivered:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by
	Party Required to	 	 	 	 	 	Section 3(d)
	Deliver Document	 	Document Required to be Delivered	 	When Required	 	Representation
	Counterparty

	 	Evidence of the authority and
true signatures of each official
or representative signing this
Confirmation
	 	Upon or before
execution and
delivery of this
Confirmation
	 	Yes
	 
	 	 	 	 	 	 
	Counterparty

	 	Certified copy of the resolution
of the Board of Directors or
equivalent document authorizing
the execution and delivery of
this Confirmation and such other
certificate or certificates as
Dealer shall reasonably request
	 	Upon or before
execution and
delivery of this
Confirmation
	 	Yes

Addresses for Notices: For the purpose of Section 12(a) of the Agreement:

Address for notices or communications to Citibank for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	 250 West Street
	 

	 	 	 	 10th Floor
	 

	 	 	 	 New York, New York 10013
	 

	 	Attention:
	 	 Director Derivatives Operations
	 

	 	Facsimile No.:
	 	 212 723 2956

In addition, in the case of notices or communications relating to Section 5, 6, 11 or 13 of
the ISDA Master Agreement, a second copy of any such notice or communication shall be
addressed to the attention of Party A’s legal department as follows:

	 	 	 	 	 
	 

	 	Address:
	 	 Legal Department
	 

	 	 	 	 77 Water Street
	 

	 	 	 	 9th Floor
	 

	 	 	 	 New York, New York 10004
	 

	 	Attention:
	 	 Department Head
	 

	 	Facsimile No.:
	 	 212 657 1452

OTC Warrant Confirmation (amended)

- 17 -

 

Address for notices or communications to Counterparty for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	 14200 SW Karl Braun Drive
	 

	 	 	 	 Beaverton, OR 97077
	 

	 	Attention:
	 	 Treasurer
	 

	 	Facsimile No.:
	 	 503-627-6108
	 

	 	Telephone No.:
	 	 503-627-4622

In addition, in the case of notices or communications relating to Section 5, 6, 11 or 13 of
this Agreement, a second copy of any such notice or communication shall be addressed to the
attention of Counterparty’s General Counsel as follows:

	 	 	 	 	 
	 

	 	Address:
	 	 14200 SW Karl Braun Drive
	 

	 	 	 	 Beaverton, OR 97077
	 

	 	Attention:
	 	 General Counsel
	 

	 	Facsimile No.:
	 	 503-627-7474
	 

	 	Telephone No.:
	 	 503-627-6777

Multibranch Party. For the purpose of Section 10(c) of the Agreement: Neither Dealer nor
Counterparty is a Multibranch Party.

Calculation Agent. “Calculation Agent” means Dealer, acting in good faith and in a commercially
reasonable manner.

Credit Support Document.

Dealer: Not Applicable

Counterparty: Not Applicable

Credit Support Provider.

With respect to Dealer: Not Applicable.

With respect to Counterparty: Not Applicable.

Governing Law. This Confirmation will be governed by, and construed in accordance with, the laws
of the State of New York.

Submission to Jurisdiction. Each party hereby irrevocably and unconditionally submits for itself
and its property in any legal action or proceeding by the other party against it relating to the
Transaction to which it is a party, or for recognition and enforcement of any judgment in respect
thereof, to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in
New York County, the courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

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 this
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 this Transaction, as applicable, by, among other
things, the mutual waivers and certifications provided herein.

Netting of Payments. The provisions of Section 2(c) of the Agreement shall not be
applicable to this Transaction.

OTC Warrant Confirmation (amended)

- 18 -

 

Basic Representations. Section 3(a) of the Agreement is hereby amended by the deletion of
“and” at the end of Section 3(a)(iv); the substitution of a semicolon for the period at the
end of Section 3(a)(v) and the addition of Sections 3(a)(vi), as follows:

Eligible Contract Participant; Line of Business. Each party agrees and represents that it is
an “eligible contract participant” as defined in Section 1 (a)(12) of the U.S. Commodity
Exchange Act, as amended (“CEA”), this Agreement and the Transaction thereunder are subject
to individual negotiation by the parties and have not been executed or traded on a “trading
facility” as defined in Section 1(a)(33) of the CEA, and it has entered into this
Confirmation and this Transaction in connection with its business or a line of business
(including financial intermediation), or the financing of its business.

Acknowledgements:

	(a)	 	The parties acknowledge and agree that there are no other representations, agreements or
other undertakings of the parties in relation to this Transaction, except as set forth in the
Agreement or this Confirmation.
	 
	(b)	 	The parties hereto intend for:

	 	(i)	 	Buyer to be a “financial institution” as defined in Section 101(22) of Title 11
of the United States Code (the “Bankruptcy Code”) and this Transaction to be a
“securities contract” as defined in Section 741(7) of the Bankruptcy Code and a “swap
agreement” as defined in Section 101(53C) of the Bankruptcy Code, qualifying for the
protections of, among other sections, Sections 362(b)(6), 362 (b)(17), 546(e), 546(g),
555 and 560 of the Bankruptcy Code;
	 
	 	(ii)	 	a party’s right to liquidate this Transaction and to exercise any other
remedies upon the occurrence of any Event of Default under the Agreement with respect
to the other party to constitute a “contractual right” as defined in the Bankruptcy
Code;
	 
	 	(iii)	 	all payments for, under or in connection with this Transaction, all payments
for the Shares and the transfer of such Shares to constitute “settlement payments” as
defined in the Bankruptcy Code.

	(c)	 	The parties acknowledge and agree that in the event of an Early Termination Date as a result
of an Event of Default that is within Counterparty’s control, the amount payable under the
Agreement will be a cash amount calculated as described therein and that any delivery
specified in this Transaction will no longer be required.

Amendment of Section 6(d)(ii). Section 6(d)(ii) of the Agreement is modified by deleting
the words “on the day” in the second line thereof and substituting therefor “on the day that is
three Local Business Days after the day”. Section 6(d)(ii) is further modified by deleting
the words “two Local Business Days” in the fourth line thereof and substituting therefor “three
Local Business Days.”

Consent to Recording. Each party consents to the recording of the telephone conversations of
trading and marketing personnel of the parties and their Affiliates in connection with this
Confirmation. To the extent that one party records telephone conversations (the “Recording Party”)
and the other party does not (the “Non-Recording Party”), the Recording Party shall in the event of
any dispute, make a complete and unedited copy of such party’s tape of the entire day’s
conversations with the Non-Recording Party’s personnel available to the Non-Recording Party. The
Recording Party’s tapes may be used by either party in any forum in which a dispute is sought to be
resolved and the Recording Party will retain tapes for a consistent period of time in accordance
with the Recording Party’s policy unless one party notifies the other that a particular transaction
is under review and warrants further retention.

Disclosure. Each party hereby acknowledges and agrees that Dealer has authorized Counterparty to
disclose this Transaction and any related hedging transaction between the parties if and to the
extent that Counterparty reasonably

OTC Warrant Confirmation (amended)

- 19 -

 

determines (after consultation with Dealer) that such disclosure is required by law or by the rules
of the New York Stock Exchange or any securities exchange. Notwithstanding the foregoing,
effective from the date of commencement of discussions concerning the Transaction, Counterparty and
each of its employees, representatives, or other agents may disclose to any and all persons,
without limitation of any kind, the tax treatment and tax structure of the Transaction and all
materials of any kind (including opinions or other tax analyses) that are provided to Counterparty
relating to such tax treatment and tax structure.

Severability. If any term, provision, covenant or condition of this Confirmation, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable in
whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Confirmation had been executed with the invalid
or unenforceable provision eliminated, so long as this Confirmation as so modified continues to
express, without material change, the original intentions of the parties as to the subject matter
of this Confirmation and the deletion of such portion of this Confirmation will not substantially
impair the respective benefits or expectations of parties to this Agreement; provided, however,
that this severability provision shall not be applicable if any provision of Section 2,
5, 6 or 13 of the Agreement (or any definition or provision in Section
14 to the extent that it relates to, or is used in or in connection with any such Section)
shall be so held to be invalid or unenforceable.

Affected Parties. For purposes of Section 6(e) of the Agreement, each party shall be deemed
to be an Affected Party in connection with Illegality and any Tax Event.

[Signatures follow on separate page]

OTC Warrant Confirmation (amended)

- 20 -

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing
the copy of this Confirmation enclosed for that purpose and returning it to us.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	CITIBANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ JASON SHREDNICK	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Jason Shrednick	 	 
	 	 	Title:	 	Authorized Signatory	 	 

Confirmed as of the date first above written:

	 	 	 	 	 	 	 
	TEKTRONIX, INC.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ JAMES F. DALTON	 	 
	 	 	 	 	 
	Name:	 	James F. Dalton	 	 
	Title:	 	Senior Vice President,	 	 
	 

	 	 	 	General Counsel, and Secretary	 	 

OTC
Warrant Confirmation (amended)

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