Document:

Exhibit
10.6

EXECUTION COPY 

	
   

  	
  Deutsche Bank 

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank AG London

  
	
   

  	
  Winchester house

  
	
   

  	
  1 Great Winchester St,

  
	
   

  	
  London EC2N 2DB

  
	
   

  	
  Telephone: 44 20
  7545 8000

  
	
   

  	
   

  
	
   

  	
  c/o Deutsche Bank Securities Inc.

  
	
   

  	
  60 Wall Street

  
	
   

  	
  New York, NY 10005

  
	
   

  	
  Telephone: 212-250-2500

  
	
   

  	
   

  
	
   

  	
  Opening Transaction

  

 

	
  To:

  	
   

  	
  EMC Corporation 

  176 South Street 

  Hopkinton, MA 01748

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Deutsche Bank AG, London Branch

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Issuer Warrant Transaction

  
	
   

  	
   

  	
   

  
	
  Ref. No:

  	
   

  	
  141174

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  November 13, 2006

  

 

Dear Sir(s):

The purpose of this communication (this “Confirmation”)
is to set forth the terms and conditions of the above-referenced transaction
entered into on the Trade Date specified below (the “Transaction”)
between Deutsche Bank AG, London Branch (“Dealer”) and EMC Corporation (“Issuer”).  This communication constitutes a “Confirmation”
as referred to in the ISDA Master Agreement specified below.

DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER OR
DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  DEUTSCHE BANK SECURITIES INC. (“AGENT”) HAS
ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION AND HAS NO OBLIGATION,
BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH RESPECT TO THE
PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION.  DEUTSCHE BANK AG LONDON IS NOT A MEMBER OF
THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

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

Each party is hereby advised, and each such party
acknowledges, that the other party has engaged in, or refrained from engaging
in, substantial financial transactions and has taken other material actions in 

reliance upon the parties’
entry into the Transaction to which this Confirmation relates on the terms and
conditions set forth below.

This Confirmation evidences a complete and binding agreement
between Dealer and Issuer as to the terms of the Transaction to which this
Confirmation relates.  This Confirmation
shall be subject to an agreement (the “Agreement”) in
the form of the 1992 ISDA Master Agreement as if Dealer and Issuer had executed
an agreement in such form on the date hereof (but without any Schedule except
for (i) the election of Loss and Second Method and US Dollars (“USD”) as the Termination Currency and (ii) the replacement
of the word “third” in the last line of Section 5(a)(i) with the word “first”).

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

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

General Terms:

	
  Trade Date:

  	
   

  	
  November 13, 2006

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  November 17, 2006, or such other date as agreed
  between the parties, subject to Section 8(k) below

  
	
   

  	
   

  	
   

  
	
  Components:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Warrant Style:

  	
   

  	
  European

  
	
   

  	
   

  	
   

  
	
  Warrant Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Issuer

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  The Common Stock of Issuer, par value USD 0.01
  per share (Ticker Symbol: “EMC”).

  
	
   

  	
   

  	
   

  
	
  Number of Warrants:

  	
   

  	
  For each Component, as provided in Annex A to this
  Confirmation.

  
	
   

  	
   

  	
   

  
	
  Warrant Entitlement:

  	
   

  	
  One Share per Warrant

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  USD19.5455

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD82,972,500 (Premium per Warrant USD1.5467).

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  The Effective Date

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  New York Stock Exchange

  
	
   

  	
   

  	
   

  
	
  Related Exchange:

  	
   

  	
  All Exchanges

  

 

 2
 

Procedures for Exercise:

	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  Valuation Time

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  As provided in Annex A to this Confirmation
  (or, if such date is not a Scheduled Trading Day, the next following
  Scheduled Trading Day that is not already an Expiration Date for another
  Component); provided that if
  that date is a Disrupted Day, the Expiration Date for such Component shall be
  the first succeeding Scheduled Trading Day that is not a Disrupted Day and is
  not or is not deemed to be an Expiration Date in respect of any other
  Component of the Transaction hereunder; and provided
  further that if the Expiration Date has not occurred pursuant to
  the preceding proviso as of the Final Disruption Date,
  the Final Disruption Date shall be the Expiration Date (irrespective of
  whether such date is an Expiration Date in respect of any other Component for
  the Transaction). “Final
  Disruption Date” means March 27, 2012. Notwithstanding the foregoing and
  anything to the contrary in the Equity Definitions, if a Market Disruption
  Event occurs on any Expiration Date, the Calculation Agent may determine that
  such Expiration Date is a Disrupted Day only in part, in which case the
  Calculation Agent shall make adjustments to the number of Warrants for the
  relevant Component for which such day shall be the Expiration Date and shall
  designate the Scheduled Trading Day determined in the manner described in the
  immediately preceding sentence as the Expiration Date for the remaining
  Warrants for such Component. Section 6.6 of the Equity Definitions shall not
  apply to any Valuation Date occurring on an Expiration Date.

  
	
   

  	
   

  	
   

  
	
  Market Disruption
  Event:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  Applicable; and means that the 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.

  
	
   

  	
   

  	
   

  
	
  Issuer’s Telephone
  Number and Telex and/or Facsimile Number and Contact Details for purpose of Giving
  Notice:

  	
   

  	
  To:

  	
  EMC Corporation

  

 

 3
 

 

	
  

  	
   

  	
  Attn:

  	
  Office of General Counsel

  	 

	
   

  	
   

  	
  Telephone:

  	
  (508) 435-1000

  	 

	
   

  	
   

  	
  Facsimile:

  	
  (508) 497-6915

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In
  respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  On each Settlement Date, Issuer shall deliver to
  Dealer a number of Shares equal to the Number of Shares to be Delivered for
  such Settlement Date to the account specified by Dealer and cash in lieu of
  any fractional shares valued at the Relevant Price on the Valuation Date
  corresponding to such Settlement Date. If, in the reasonable opinion of
  Issuer or Dealer based on advice of counsel, for any reason, the Shares
  deliverable upon Net Share Settlement would not be immediately freely
  transferable by Dealer under Rule 144(k) under
  the Securities Act of 1933, as amended (the “Securities
  Act”), then Dealer may elect to either (x) accept delivery of such
  Shares notwithstanding any restriction on transfer or (y) have the provisions
  set forth in Section 8(b) below apply.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Number of Shares to be Delivered shall be
  delivered by Issuer to Dealer no later than 12:00 noon (local time in New
  York City) on the relevant Settlement Date.

  
	
   

  	
   

  	
   

  
	
  Number of Shares to be
  Delivered:

  	
   

  	
  In respect of any Exercise Date, subject to the last
  sentence of Section 9.5 of the Equity Definitions, the product of (i) the
  number of Warrants exercised or deemed exercised on such Exercise Date, (ii)
  the Warrant Entitlement and (iii) (A) the excess of the VWAP Price on the
  Valuation Date occurring on such Exercise Date over the Strike Price (or, if
  no such excess, zero) divided by
  (B) such VWAP Price.

  
	
   

  	
   

  	
   

  
	
  VWAP Price:

  	
   

  	
  For any Valuation Date, the New York 10b-18 Volume
  Weighted Average Price per share of the Shares for the regular trading
  session (including any extensions thereof) of the Exchange on such Valuation
  Date (without regard to pre-open or after hours trading outside of such
  regular trading session) as published by Bloomberg at 4:15 p.m. New York
  time on such date, on Bloomberg page “EMC.N <Equity> AQR_SEC” (or any
  successor thereto).

  
	
   

  	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
   

  	
  The provisions of Sections 9.1(c), 9.8, 9.9, 9.10,
  9.11 (except that the Representation and Agreement contained in Section 9.11
  of the Equity Definitions shall be modified by excluding any representations
  therein relating to restrictions, obligations, limitations or requirements
  under applicable securities laws as a result of the fact that Seller is the
  Issuer of the Shares) and 9.12 of the Equity Definitions will be 

  

 

 4
 

 

	
  

  	
   

  	
  applicable as if “Physical Settlement” applied to
  the Transaction.

  
	
   

  	
   

  	
   

  
	
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation Agent Adjustment; provided
  that in respect of an Extraordinary Dividend, “Calculation Agent Adjustment”
  shall be as described in the provision below.

  
	
   

  	
   

  	
   

  
	
  Extraordinary Dividend:

  	
   

  	
  If at any time during the period from and including
  the Trade Date, to but excluding the last Expiration Date, an ex-dividend
  date for a cash dividend occurs with respect to the Shares (an “Ex-Dividend
  Date” and such dividend, an “Extraordinary Dividend”), then the Calculation
  Agent will make adjustments to the Strike Price, the Number of Warrants, the
  Daily Number of Warrants, the Warrant Entitlement and any other variable
  relevant to the exercise, settlement, payment or other terms of the
  Transaction to preserve the fair value of the Transaction to Buyer after
  taking into account such dividend.

  
	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)          Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (b)         Share-for-Other:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (c)          Share-for-Combined:

  	
   

  	
  Modified Calculation Agent Adjustment; provided that if Cancellation and Payment would otherwise
  be deemed to be applicable to the Transaction pursuant to Section 12.2(e)(ii)
  of the Equity Definitions, the Calculation Agent may elect to have
  Cancellation and Payment apply to the Transaction in whole or in part.

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Consequences of Tender
  Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)          Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (b)         Share-for-Other:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (c)          Share-for-Combined:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Modified Calculation
  Agent Adjustment:

  	
   

  	
  

  If, in respect of any Merger Event or Tender Offer to which Modified
  Calculation Agent Adjustment applies, the adjustments to be made in
  accordance with Section 12.2(e)(i) or Section 12.3(d)(i), as the case may be,
  of the Equity Definitions would result in Issuer being different from the
  issuer of the Shares, then with respect to such Merger Event or Tender Offer,
  as a condition precedent to the adjustments contemplated in Section
  12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity 

  

 

 5
 

 

	
  

  	
   

  	
  Definitions, Issuer and the issuer of the Shares
  shall, prior to the Merger Date or Tender Offer, as the case may be, have
  entered into such documentation containing representations, warranties and
  agreements relating to securities law and other issues as requested by Buyer
  that Buyer has determined, in its reasonable discretion, to be reasonably
  necessary or appropriate to allow Buyer to continue as a party to the
  Transaction, as adjusted under Section 12.2(e)(i) or Section 12.3(d)(i), as
  the case may be, of the Equity Definitions, and to preserve its hedging or
  hedge unwind activities in connection with the Transaction in a manner
  compliant with applicable legal, regulatory or self-regulatory requirements,
  or with related policies and procedures applicable to Buyer, and if such conditions
  are not met or if the Calculation Agent determines that no adjustment that it
  could make under Section 12.2(e)(i) or Section 12.3(d)(i), as the case may
  be, of the Equity Definitions will produce a commercially reasonable result,
  then the consequences set forth in Section 12.2(e)(ii) or Section
  12.3(d)(ii), as the case may be, of the Equity Definitions shall apply.

  
	
   

  	
   

  	
   

  
	
  Reference
  Markets:

  	
   

  	
  For the avoidance of doubt, and without limiting the
  generality of the foregoing provisions, any adjustment effected by the
  Calculation Agent pursuant to Section 12.2(e) and/or Section 12.3(d) of the
  Equity Definitions may be determined by reference to the adjustment(s) made
  in respect of Merger Events or Tender Offers, as the case may be, in the
  convertible bond market.

  
	
   

  	
   

  	
   

  
	
  Nationalization,
  Insolvency or Delisting:

  	
   

  	
  

  Cancellation and Payment (Calculation Agent Determination); provided that in addition to the
  provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also
  constitute a Delisting if the Exchange is located in the United States and
  the Shares are not immediately re-listed, re-traded or re-quoted on any of
  the New York Stock Exchange, the American Stock Exchange, The NASDAQ Global
  Select Market or The NASDAQ Global Market (or their respective successors);
  if the Shares are immediately re-listed, re-traded or re-quoted on any such
  exchange or quotation system, such exchange or quotation system shall
  thereafter be deemed to be the Exchange.

  
	
   

  	
   

  	
   

  
	
  Additional
  Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)          Change
  in Law:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (b)         Failure
  to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (c)          Insolvency
  Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (d)         Hedging
  Disruption:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (e)          Increased
  Cost of Hedging:

  	
   

  	
  Applicable

  

 

 6
 

 

	
  (f)            Loss
  of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Maximum Stock Loan
  Rate:

  	
   

  	
  1.00% per annum

  
	
   

  	
   

  	
   

  
	
  (g)         Increased
  Cost of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Initial Stock Loan
  Rate:

  	
   

  	
  0.25% per annum

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Buyer for all applicable Additional Disruption
  Events

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  Buyer for all applicable Additional Disruption
  Events

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and
  Acknowledgments Regarding Hedging Activities:

  	
   

  	
  

  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  3.     Calculation Agent:

  	
   

  	
  Dealer.

  
	
   

  	
   

  	
   

  
	
  4.     Account Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dealer Payment
  Instructions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Bank of New York

  	
   

  	
   

  
	
  ABA 

  	
   

  	
   

  
	
  Deutsche Bank
  Securities Inc.

  	
   

  	
   

  
	
  A/C 

  	
   

  	
   

  
	
  FFC: 

  	
   

  	
   

  
	
  Ticket #: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Issuer Payment
  Instructions:

  	
   

  	
  To be provided by Issuer.

  
	
   

  	
   

  	
   

  
	
  5.     Offices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Office of Dealer
  for the Transaction is:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Winchester
  house, 1 Great Winchester St, London EC2N 2DB

  
	
   

  	
   

  	
   

  
	
  The Office of Issuer
  for the Transaction is:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  176 South Street,
  Hopkinton, MA 01748

  
	
   

  	
   

  	
   

  
	
  6.     Notices: For purposes of this
  Confirmation:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)                                  Address
  for notices or communications to Issuer:

  
	
   

  
	
  To:

  	
   

  	
  EMC Corporation

  
	
  Attn:

  	
   

  	
  Office of General Counsel

  
	
  Telephone:

  	
   

  	
  (508) 435-1000

  
	
  Facsimile:

  	
   

  	
  (508) 497-6915

  
	
   

  	
   

  	
   

  
	
  (b)                                 Address
  for notices or communications to Dealer:

  
	
   

  
	
  To:

  	
   

  	
  Deutsche Bank Securities Inc.

  
	
  Attn:

  	
   

  	
  Andrew Yaeger and Lee Frankenfield

  
	
  Telephone:

  	
   

  	
  (212) 250-2717 and (212) 250-4980

  
	
  Email:

  	
   

  	
  andrew.yaeger@db.com and lee.frankenfield@db.com

  
	
   

  	
   

  	
   

  
	
  7.     Representations, Warranties and
  Agreements:

  
	
   

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

  
					

 

 7
 

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

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

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

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

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

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

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

(viii)                        The
representations and warranties of Issuer set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement dated as of the Trade Date
between Issuer and Goldman, Sachs & Co., Lehman Brothers Inc. and Citigroup
Global Markets Inc. as representatives of the Initial Purchasers party thereto
are true and correct as of the Trade Date and the Effective Date and are hereby
deemed to be repeated to Dealer as if set forth herein.

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

(x)                                   (A)
During the period starting on the first Expiration Date and ending on the last Expiration
Date (the “Settlement Period”), the Shares or
securities that are convertible into, or exchangeable or exercisable for
Shares, are not, and shall not be, subject to a “restricted period,” as such
term is defined in Regulation M under the Exchange Act (“Regulation M”)
and (B) Issuer shall not engage in any “distribution,” as such term is defined
in Regulation M, other than a distribution meeting the requirements of the
exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M,
until the second Exchange Business Day immediately following the Settlement
Period.

(xi)                                During
the Settlement Period, neither Issuer nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall directly or indirectly (including,
without limitation, by means of any cash-settled or other derivative
instrument) purchase, offer to purchase, place any bid or limit order that
would effect a purchase of, or commence any tender offer relating to, any
Shares (or an equivalent interest, including a unit 

 8
 

of beneficial interest in a trust or limited
partnership or a depository share) or any security convertible into or
exchangeable or exercisable for Shares.

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

(c)           Each of Dealer and
Issuer acknowledges that the offer and sale of the Transaction to it is
intended to be exempt from registration under the Securities Act of 1933, as
amended (the “Securities Act”), by virtue of
Section 4(2) thereof.  Accordingly,
Dealer represents and warrants to Issuer that (i) it has the financial ability
to bear the economic risk of its investment in the Transaction and is able to
bear a total loss of its investment and its investments in and liabilities in
respect of the Transaction, which it understands are not readily marketable,
are not disproportionate to its net worth, and it is able to bear any loss in
connection with the Transaction, including the loss of its entire investment in
the Transaction, (ii) it is an “accredited investor” as that term is defined in
Regulation D as promulgated under the Securities Act, (iii) it is entering into
the Transaction for its own account without a view to the distribution or
resale thereof, (iv) the assignment, transfer or other disposition of the
Transaction has not been and will not be registered under the Securities Act
and is restricted under this Confirmation, the Securities Act and state
securities laws, (v) its financial condition is such that it has no need for
liquidity with respect to its investment in the Transaction and no need to
dispose of any portion thereof to satisfy any existing or contemplated
undertaking or indebtedness and is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice),
and understands and accepts, the terms, conditions and risks of the
Transaction.

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

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

8.  Other Provisions:

(a)           Alternative Calculations and Payment on Early Termination and on
Certain Extraordinary Events. 
If Issuer shall owe Buyer any amount pursuant to Sections 12.2, 12.3,
12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of a Tender
Offer or a Merger Event, in each case, in which the consideration or proceeds
to be paid to holders of Shares consists solely of cash) or pursuant to Section
6(d)(ii) of the Agreement (except in the event of an Event of Default in which
Issuer is the Defaulting Party or a Termination Event in which Issuer is the
Affected Party, that resulted from an event or events within Issuer’s control)
(a “Payment Obligation”), Issuer shall have
the right, in its sole discretion, to satisfy any such Payment Obligation by
the Share Termination Alternative (as defined below) by giving irrevocable
telephonic notice to Buyer, confirmed in writing within one Scheduled Trading
Day, by 4:00 P.M. New York City time on the Merger Date, Tender Offer Date,
Announcement Date or Early Termination Date, as applicable (“Notice of Share Termination”).  Upon such Notice of Share Termination, the
following provisions shall apply on the Scheduled Trading Day immediately
following the Merger Date, the Tender Offer Date, Announcement Date or Early
Termination Date, as applicable:

	
  Share Termination Alternative:

  	
   

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

  

 

 9
 

 

	
  Share Termination Delivery Property:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Unit Price:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery Unit:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other applicable provisions:

  	
   

  	
  If Share Termination Alternative is applicable, the
  provisions of Sections 9.8, 9.9, 9.10, 9.11 (except that the Representation
  and Agreement contained in Section 9.11 of the Equity Definitions shall be
  modified by excluding any representations therein relating to restrictions,
  obligations, limitations or requirements under applicable securities laws as
  a result of the fact that Seller is the Issuer of the Shares) and 9.12 of the
  Equity Definitions will be applicable as if “Physical Settlement” applied to
  the Transaction, except that all references to “Shares” shall be read as
  references to “Share Termination Delivery Units”. If, in the reasonable
  opinion of counsel to Issuer or Dealer, for any reason, any securities
  comprising the Share Termination Delivery Units deliverable pursuant to this
  Section 8(a) would not be immediately freely transferable by Dealer under
  Rule 144(k) under the Securities Act, then Dealer may elect to either (x)
  accept delivery of such securities notwithstanding any restriction on
  transfer or (y) have the provisions set forth in Section 8(b) below apply.

  

 

(b)           Registration/Private
Placement Procedures.  (i)  With respect to the Transaction, the
following provisions shall apply to the extent provided for above opposite the
caption “Net Share Settlement” in Section 2 or in paragraph (a) of this Section
8.  If so applicable, then, at the
election of Issuer by notice to Buyer within one Exchange Business Day after
the relevant delivery obligation arises, but in any event at least one Exchange
Business Day prior to the date on which such delivery obligation is due, either
(A) all Shares or Share Termination Delivery Units, as the case may be,
delivered by Issuer to Buyer shall be, at the time of such delivery, covered by
an effective registration statement of Issuer for immediate resale by Buyer
(such registration statement and the corresponding prospectus (the “Prospectus”) (including, without limitation, any sections
describing the plan of distribution) in form and content commercially
reasonably satisfactory to Buyer) or (B) Issuer shall deliver additional Shares
or Share Termination Delivery Units, as the case may be, so that the value of
such Shares or Share Termination Delivery Units, as determined by the
Calculation Agent to reflect an appropriate liquidity discount, equals the
value of the number of Shares or Share Termination Delivery Units that would 

 10
 

otherwise be deliverable if such Shares or Share
Termination Delivery Units were freely tradeable (without prospectus delivery)
upon receipt by Buyer (such value, the “Freely
Tradeable Value”); provided
that Issuer may not make the election described in this clause (B) if, on the
date of its election, it has taken, or caused to be taken, any action that
would make unavailable either the exemption pursuant to Section 4(2) of the
Securities Act for the sale by Issuer to Dealer (or any affiliate designated by
Dealer) of the Shares or the exemption pursuant to Section 4(1) or Section 4(3)
of the Securities Act for resales of the Shares by Dealer (or any such
affiliate of Dealer); provided further that, if requested by Dealer, Issuer shall make the
election described in this clause (B) with respect to Shares delivered on all
Settlement Dates no later than one Exchange Business Day prior to the first
Expiration Date, and the applicable procedures described below shall apply to
all Shares delivered on the Settlement Dates on an aggregate basis.  (For the avoidance of doubt, as used in this
paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

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

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

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

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

(A)          Buyer (or an affiliate
of Buyer designated by Buyer) and any potential institutional purchaser of any
such Shares or Share Termination Delivery Units, as the case may be, from Buyer
or such affiliate identified by Buyer shall be afforded a commercially
reasonable opportunity to conduct a due diligence investigation in compliance
with applicable law with respect to Issuer customary in scope for private
placements of equity securities (including, without limitation, the right to
have made available to them for inspection all financial and other records,
pertinent corporate documents and other information reasonably requested by
them), subject to execution by such recipients of customary confidentiality
agreements reasonably acceptable to Issuer;

(B)           Buyer (or an affiliate
of Buyer designated by Buyer) and Issuer shall enter into an agreement (a “Private Placement Agreement”) on commercially reasonable
terms in connection with the private placement of such Shares or Share
Termination Delivery Units, as the case may be, by Issuer to Buyer or such affiliate
and the private resale of such shares by Buyer 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 Buyer and Issuer, which Private Placement Agreement shall
include, without limitation, provisions substantially similar to those
contained in such private placement purchase agreements relating to the
indemnification of, and contribution in connection with the liability of, Buyer
and its affiliates and Issuer, shall provide for the payment by Issuer of all
expenses in connection with such resale, including all fees and expenses of
counsel for Buyer, shall contain representations, warranties and agreements of
Issuer reasonably necessary or advisable to establish 

 11
 

and maintain the availability of an exemption from the
registration requirements of the Securities Act for such resales, and shall use
best efforts to provide for the delivery of accountants’ “comfort letters” to
Buyer or such affiliate with respect to the financial statements and certain
financial information contained in or incorporated by reference into the
offering memorandum prepared for the resale of such Shares; and

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

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

(d)           Beneficial Ownership. 
Notwithstanding anything to the contrary in the Agreement or this
Confirmation, in no event shall Buyer be entitled to receive, or shall be
deemed to receive, any Shares if, upon such receipt of such Shares, the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules
promulgated thereunder) of Shares by Buyer or any entity that directly or
indirectly controls Buyer (collectively, “Buyer Group”)
would be equal to or greater than 9.5% or more of the outstanding Shares.  If any delivery owed to Buyer hereunder is
not made, in whole or in part, as a result of this provision, Issuer’s
obligation to make such delivery shall not be extinguished and Issuer shall
make such delivery as promptly as practicable after, but in no event later than
one Exchange Business Day after, Buyer gives notice to Issuer that such
delivery would not result in Buyer Group directly or indirectly so beneficially
owning in excess of 9.5% of the outstanding Shares.  For the avoidance of doubt, nothing in this
subsection (d) obligates Issuer to pay cash to Buyer in lieu of any Share
delivery obligation owed by Issuer to Buyer under this Confirmation.

(e)           Limitations on Settlement by Issuer.  Notwithstanding anything herein or in the
Agreement to the contrary, in no event shall Issuer be required to deliver
Shares in connection with the 

 12
 

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

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

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

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

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

(h)                                 Transfer and Assignment. 
Buyer may transfer or assign its rights and obligations hereunder and
under the Agreement, in whole or in part, at any time to any bank or
broker-dealer or any affiliate thereof that in either case regularly enters
into over-the-counter equity derivative transactions without the consent of
Issuer.

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

(j)                                     Additional Termination Event.  If 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 

 13
 

advisable to terminate a portion of the Transaction so
that Buyer’s related hedging activities will comply with applicable securities
laws, rules or regulations, an Additional Termination Event shall occur in
respect of which (1) Issuer shall be the sole Affected Party and (2) the
Transaction shall be the sole Affected Transaction.

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

(l)                                     Extension of Settlement. 
Dealer may divide any Component into additional Components and designate
the Expiration Date and the Number of Warrants for each such Component if Dealer
determines, in its reasonable discretion, that such further division is
necessary or advisable to preserve Dealer’s hedging activity hereunder in light
of existing liquidity conditions or to enable Dealer to effect purchases of
Shares in connection with its hedging activity hereunder in a manner that
would, if Dealer were the Issuer or an affiliated purchaser of the Issuer, be in
compliance with applicable legal and regulatory requirements.

(m)                               Governing Law.  THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE).

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

(o)                                 No Set-off.  The
provisions of Section 2(c) of the Agreement shall not apply to the Transaction.  Each party waives any and all rights it may
have to set-off delivery or payment obligations it owes to the other party
under the Transaction against any delivery or payment obligations owed to it by
the other party, whether arising under the Agreement, under any other agreement
between parties hereto, by operation of law or otherwise.

 14

Issuer hereby agrees
(a) to check this Confirmation carefully and immediately upon receipt so
that errors or discrepancies can be promptly identified and rectified and
(b) to confirm that the foregoing (in the exact form provided by Dealer)
correctly sets forth the terms of the agreement between Dealer and Issuer with
respect to the Transaction, by manually signing this Confirmation or this page
hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to
Deutsche Bank Securities Inc., Attention: Andrew Yaeger and Lee Frankenfield,
60 Wall Street, New York, New York 10005, Telephone No. (212) 250-2717 and
(212) 250-4980.

	
  

  	
   

  	
  Yours faithfully,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE
  BANK AG, LONDON BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Lee Frankenfield

  
	
   

  	
   

  	
  Name: Lee Frankenfield

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Richard Kennedy 

  
	
   

  	
   

  	
  Name: Richard Kennedy

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE BANK SECURITIES INC.,

  
	
   

  	
   

  	
  acting solely as Agent in connection

  
	
   

  	
   

  	
  with this Transaction

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Lee Frankenfield

  
	
   

  	
   

  	
  Name: Lee Frankenfield

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Richard Kennedy 

  
	
   

  	
   

  	
  Name: Richard Kennedy

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Agreed and accepted by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EMC CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ Irina Simmons

  	
   

  	
   

  
	
   

  	
  Name: Irina Simmons

  	
   

  	
   

  
	
   

  	
  Title: Senior Vice President and Treasurer

  	
   

  	
   

  
						

 

Annex A

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

	
  Component Number

  	
   

  	
  Number of Warrants

  	
   

  	
  Expiration Date

  
	
  1

  	
   

  	
  2,682,280

  	
   

  	
  February 15,
  2012

  
	
  2

  	
   

  	
  2,682,280

  	
   

  	
  February 16,
  2012

  
	
  3

  	
   

  	
  2,682,280

  	
   

  	
  February 17,
  2012

  
	
  4

  	
   

  	
  2,682,280

  	
   

  	
  February 21,
  2012

  
	
  5

  	
   

  	
  2,682,280

  	
   

  	
  February 22,
  2012

  
	
  6

  	
   

  	
  2,682,280

  	
   

  	
  February 23,
  2012

  
	
  7

  	
   

  	
  2,682,280

  	
   

  	
  February 24,
  2012

  
	
  8

  	
   

  	
  2,682,280

  	
   

  	
  February 27,
  2012

  
	
  9

  	
   

  	
  2,682,280

  	
   

  	
  February 28,
  2012

  
	
  10

  	
   

  	
  2,682,280

  	
   

  	
  February 29,
  2012

  
	
  11

  	
   

  	
  2,682,280

  	
   

  	
  March 1, 2012

  
	
  12

  	
   

  	
  2,682,280

  	
   

  	
  March 2, 2012

  
	
  13

  	
   

  	
  2,682,280

  	
   

  	
  March 5, 2012

  
	
  14

  	
   

  	
  2,682,280

  	
   

  	
  March 6, 2012

  
	
  15

  	
   

  	
  2,682,280

  	
   

  	
  March 7, 2012

  
	
  16

  	
   

  	
  2,682,280

  	
   

  	
  March 8, 2012

  
	
  17

  	
   

  	
  2,682,280

  	
   

  	
  March 9, 2012

  
	
  18

  	
   

  	
  2,682,280

  	
   

  	
  March 12, 2012

  
	
  19

  	
   

  	
  2,682,280

  	
   

  	
  March 13, 2012

  
	
  20

  	
   

  	
  2,682,283

  	
   

  	
  March 14, 2012

  
						

 

 2Exhibit 10.7

 

Citibank, N.A. | 390 Greenwich Street | New York,
NY 10013 | Equity Derivatives | Telephone: (212) 723-7357 | Facsimile: (212)
723-8328

	
  

  	
   

  	
  EXECUTION
  COPY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Opening Transaction

  
	
   

  	
   

  	
   

  
	
  

  To:

  	
   

  	
  EMC Corporation 

  176 South Street 

  Hopkinton, MA 01748

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Citibank, N.A.

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Convertible Bond Hedge Transaction

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  November 13, 2006

  
	
   

  	
   

  	
   

  

Dear Sir(s):

The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of
the above-referenced transaction entered into on the Trade Date specified below
(the “Transaction”) between Citibank, N.A. (“Dealer”) and EMC
Corporation (“Counterparty”).  This communication constitutes a “Confirmation”
as referred to in the ISDA Master Agreement specified below.

1.     This
Confirmation is subject to, and incorporates, the definitions and provisions of
the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and provisions of the
2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions”, and together with the 2000 Definitions, the “Definitions”), in each case as published by the
International Swaps and Derivatives Association, Inc. (“ISDA”).  In the event of any inconsistency between the
2000 Definitions and the Equity Definitions, the Equity Definitions will govern.  Certain defined terms used herein have the
meanings assigned to them in the Indenture to be dated as of November 17, 2006
between Counterparty and Wells Fargo Bank, N.A., as trustee (the “Indenture”) relating to the USD1,725,000,000 principal
amount of 1.75% convertible senior notes due December 1, 2011 (the “Convertible Debentures”)
and the USD1,725,000,000
principal amount of 1.75% convertible senior notes due December 1, 2013.  In the
event of any inconsistency between the terms defined in the Indenture and this
Confirmation, this Confirmation shall govern. 
For the avoidance of doubt, (i) the Transaction shall be the only transaction
under the Agreement; and (ii) references herein to sections of the Indenture
are based on the draft of the Indenture most recently reviewed by the parties
at the time of execution of this Confirmation. 
If any relevant sections of the Indenture are changed, added or
renumbered upon execution of this Confirmation, the parties will amend this
Confirmation in good faith to preserve the economic intent of the parties.  Furthermore, for the avoidance of doubt, even
if all Convertible Debentures cease to be outstanding prior to the Expiration
Date (as set forth below), for purposes of the references herein to sections of
the Indenture, the Convertible Debentures shall be deemed to remain
outstanding.  The Transaction is subject
to early unwind if the closing of the Convertible Debentures is not consummated
for any reason, as set forth below in Section 8(k).

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

This Confirmation evidences a complete and binding
agreement between Dealer and Counterparty as to the terms of the Transaction to
which this Confirmation relates.  This
Confirmation shall be subject to an agreement (the “Agreement”)
in the form of the 1992 ISDA Master Agreement as if Dealer and Counterparty had
executed an agreement in such form on the date hereof (but without any Schedule
except for (i) the election of Loss and Second Method and US Dollars (“USD”) as the Termination Currency and (ii) the replacement
of the word “third” in the last line of Section 5(a)(i) with the word “first”).

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

2.     The Transaction
constitutes a Share Option Transaction for purposes of the Equity Definitions.  The terms of the particular Transaction to
which this Confirmation relates are as follows:

	
  General Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  November 13, 2006

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  November 17, 2006 or such other date as agreed by
  the parties.

  
	
   

  	
   

  	
   

  
	
  Option Style:

  	
   

  	
  American

  
	
   

  	
   

  	
   

  
	
  Option Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  The Common Stock of Counterparty, par value USD 0.01
  per share (Ticker Symbol: “EMC”).

  
	
   

  	
   

  	
   

  
	
  Number of Options:

  	
   

  	
  The number of Convertible Debentures in
  denominations of USD1,000 principal amount issued by Counterparty on the
  closing date for the initial issuance of the Convertible Debentures. For the
  avoidance of doubt, the Number of Options outstanding shall be reduced by
  each exercise of Options hereunder.

  
	
   

  	
   

  	
   

  
	
  Option Entitlement:

  	
   

  	
  As of any date, a
  number of Shares per Option equal to the Conversion Rate (as defined in the
  Indenture, but without regard to any adjustments to the Conversion Rate
  pursuant to Section 12.4(f) or Sections 12.1(e)(1), (2) and (3) of the Indenture) as of such date. For
  the avoidance of doubt, the Option Entitlement shall take into consideration
  any Public Acquirer Change in Control Adjustments (as defined below), subject
  to the conditions set forth under “Consequences of Merger Events.”

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  As of any date, an amount in USD, rounded to the
  nearest cent (with 0.5 cents being rounded upwards), equal to USD1,000 divided by the Option Entitlement as of such date.

  
	
   

  	
   

  	
   

  
	
  Number of Shares:

  	
   

  	
  The product of the Number of Options, the Option
  Entitlement and the Applicable Percentage.

  
	
   

  	
   

  	
   

  
	
  Applicable Percentage:

  	
   

  	
  20%

  

 

 2
 

 

	
  Premium:

  	
   

  	
  USD56,821,500.00

  
	
   

  	
   

  	
   

  
	
  Premium Payment
  Date:

  	
   

  	
  The Effective Date

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  New York Stock Exchange

  
	
   

  	
   

  	
   

  
	
  Related
  Exchange:

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures for
  Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Independent
  Threshold Date:

  	
   

  	
  The earlier to occur of (x) any Conversion Date (as
  defined below) that is not also an Exercise Date and (y) the first Exercise
  Date on which Counterparty exercises a number of Options not equal to the
  number of Relevant Convertible Debentures (as defined below) in denominations
  of USD1,000 principal amount submitted for conversion on such date, if any,
  in accordance with the terms of the Indenture.

  
	
   

  	
   

  	
   

  
	
  Conversion Date:

  	
   

  	
  Each “Conversion Date”, as defined in the Indenture,
  occurring during the Exercise Period for Convertible Debentures other than
  Convertible Debentures with respect to which Counterparty makes the direction
  described in Section 12.2(a)(3) of the Indenture and the financial
  institution designated by Counterparty accepts such Convertible Debentures in
  accordance with Section 12.2(a)(3) of the Indenture (such Convertible
  Debentures, other than those excluded above, the “Relevant Convertible Debentures” for such Conversion Date).

  
	
   

  	
   

  	
   

  
	
  Exercise Period:

  	
   

  	
  The period from and excluding the Trade Date to and
  including the Expiration Date.

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  The scheduled “Trading Day”, as defined in the
  Indenture, immediately preceding December 1, 2011.

  
	
   

  	
   

  	
   

  
	
  Multiple
  Exercise:

  	
   

  	
  Applicable.

  
	
   

  	
   

  	
   

  
	
  Minimum Number
  of Options:

  	
   

  	
  Zero

  
	
   

  	
   

  	
   

  
	
  Maximum Number
  of Options:

  	
   

  	
  Number of Options

  
	
   

  	
   

  	
   

  
	
  Integral
  Multiple:

  	
   

  	
  One

  
	
   

  	
   

  	
   

  
	
  Automatic
  Exercise:

  	
   

  	
  Applicable; subject to the provisions of “Notice of
  Exercise” below.

  
	
   

  	
   

  	
   

  
	
  Notice of
  Exercise:

  	
   

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, (x) in order to exercise any Options on any Exercise Date
  that precedes the Independent Threshold Date, Counterparty must notify Dealer
  in writing prior to 5:00 PM, New York City time, on the Exchange Business Day
  prior to the first Scheduled Trading Day of the “Observation Period”, as
  defined in the Indenture, relating to the Relevant Convertible Debentures
  converted on the Conversion Date on which such Exercise Date occurs (the “Notice Deadline”) of (i) the relevant
  Exercise Date, (ii) the number of Options being exercised on such Exercise
  Date, (iii) the scheduled settlement date under the Indenture for the
  Relevant Convertible

  

 

 3
 

 

	
  

  	
   

  	
  Debentures converted on the Conversion Date on which
  such Exercise Date occurs, (iv) the first day of the relevant Observation Period,
  and (v) the applicable Cash Percentage (as defined in the Indenture); provided that, notwithstanding the foregoing, such notice
  shall be effective so long as it relates to an Exercise Date that would not
  have been the Independent Threshold Date, if the notice were delivered by the
  Notice Deadline and the notice is given after the Notice Deadline but prior
  to 5:00 PM (New York City time) on the fifth Exchange Business Day of such
  Observation Period and prior to the Independent Threshold Date (it being
  understood that such delayed notice does not itself cause the Independent
  Threshold Date to occur), in which event the Calculation Agent shall have the
  right to adjust the Delivery Obligation as appropriate to reflect the
  additional costs (including, but not limited to, hedging mismatches and
  market losses) and expenses incurred by Dealer or any of its affiliates in
  connection with its hedging activities (including the unwinding of any hedge
  position) as a result of its not having received such notice prior to the
  Notice Deadline; and (y) in order to exercise any Options on any Exercise
  Date that is or is following the Independent Threshold Date, Counterparty
  must notify Dealer in writing prior to 5:00 PM, New York City time, on the
  Exchange Business Day prior to the first Scheduled Trading Day of the
  “Observation Period”, determined as if the Exercise Date were a Conversion
  Date, as defined in the Indenture, of (i) the relevant Exercise Date, (ii)
  the number of Options being exercised on such Exercise Date, (iii) the first
  day of the Observation Period (determined in accordance with Section 1.1 of
  the Indenture for Relevant Convertible Debentures for the corresponding
  Conversion Date, if any, or, if such Exercise Date did not occur on a
  Conversion Date, determined in accordance with Section 1.1 of the Indenture
  as if such Exercise Date were a Conversion Date) and (iv) the applicable Cash
  Percentage and, except for any Exercise Date occurring during the period from
  and including November 1, 2011 to and including the Expiration Date,
  Counterparty shall also make in such written notice representations,
  warranties and agreements set forth in Sections 7(a)(i) and (ii) hereof; provided that, in either case, with respect to any
  Exercise Dates occurring during the period starting on and including November
  1, 2011 to and including the Expiration Date, Counterparty may provide a
  single notice containing the information required above with respect to such
  Exercise Dates. For the avoidance of doubt, if an exercise of Options is in
  connection with a conversion of the Relevant Convertible Debentures,
  Counterparty shall designate the Exercise Date in its 

  

 

 4
 

 

	
  

  	
   

  	
  Notice of Exercise as the corresponding Conversion
  Date.

  
	
   

  	
   

  	
   

  
	
  Dealer’s
  Telephone Number and Telex and/or Facsimile Number and Contact Details for
  purpose of Giving Notice:

  	
   

  	
  To:

  	
  Citibank, N.A.

  390 Greenwich Street

  New York, NY 10013

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Equity Derivatives

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 723-7357

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 723-8328

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:

  	
  Citibank, N.A.

  
	
   

  	
   

  	
   

  	
  250 West Street,
  10th Floor

  
	
   

  	
   

  	
   

  	
  New York, NY
  10013

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  GCIB Legal Group—Derivatives

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 723-2944

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 801-4109

  
	
  Settlement
  Terms:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  In respect of an Exercise Date occurring on a
  Conversion Date, the settlement date for the Shares or cash to be delivered
  under the Relevant Convertible Debentures under the terms of the Indenture;
  in respect of any other Exercise Date, the date one Settlement Cycle
  immediately following the relevant Observation Period.

  
	
   

  	
   

  	
   

  
	
  Delivery
  Obligation:

  	
   

  	
  In lieu of the obligations set forth in Sections 8.1
  and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above,
  in respect of any Exercise Date, Dealer will deliver to Counterparty, on the
  related Settlement Date, a number of Shares and/or an amount of cash, as
  determined by the Calculation Agent (and, if such Exercise Date does not
  occur on a Conversion Date or, if the number of Options being exercised on
  such Exercise Date differs from the number of the Relevant Convertible
  Debentures for the Conversion Date that coincides with such Exercise Date, as
  if such Exercise Date were a Conversion Date for a number of Relevant
  Convertible Debentures equal to the number of Options being exercised on such
  Exercise Date), to be equal to (i) the product of the Applicable Percentage
  and the aggregate number of Shares that Counterparty is (or would have been)
  obligated to deliver to holder(s) of the Relevant Convertible Debentures for
  such Conversion Date pursuant to Section 12.2 of the Indenture (rounded down
  to the nearest whole number); (ii) an amount of cash, if any, in USD in lieu
  of any fractional Share resulting from rounding of such aggregate number of
  Shares valued at the Relevant Price on the last day of the relevant 

  

 5
 

 

	
  

  	
   

  	
  Observation Period; and/or (iii) the product of the
  Applicable Percentage and the aggregate amount of cash that Counterparty is
  (or would have been) obligated to deliver in lieu of “Maximum Deliverable
  Shares”, as defined in the Indenture (other than in lieu of fractional Shares
  if any Shares will be delivered under clause (i) above) to the holder(s) of
  the Relevant Convertible Debentures converted (or that would have been
  converted) on such Conversion Date pursuant to Section 12.2(a)(2) of the
  Indenture and (collectively, the “Convertible
  Obligation”); provided
  that such obligation shall be determined excluding any Shares or cash that
  Counterparty is obligated (or would have been obligated) to deliver to
  holder(s) of the Relevant Convertible Debentures as a result of any
  adjustments to the Conversion Rate pursuant to Section 12.2(a)(3) of the
  Indenture but taking into consideration any Public Acquirer Change in Control
  Adjustments (as defined below), subject to the conditions set forth under
  “Consequences of Merger Events.” For the avoidance of doubt, if the “Daily
  Conversion Value”, as defined in the Indenture, is (or would have been) less
  than or equal to USD50 for each of the Trading Days occurring in the relevant
  Observation Period, Dealer will have no delivery obligation hereunder.

  
	
   

  	
   

  	
   

  
	
  Notice of
  Delivery Obligation:

  	
   

  	
  No later than the Exchange Business Day immediately
  following the last day of the Observation Period, Counterparty shall give
  Dealer notice of the final number of Shares and/or the amount of cash
  comprising the relevant Convertible Obligation; provided
  that, with respect to any Exercise Date occurring during the period from and
  including November 1, 2011 to and including the Expiration Date, Counterparty
  may provide Dealer with a single notice of the aggregate number of Shares
  and/or the amount of cash comprising the Convertible Obligations for all
  Exercise Dates occurring during such period (it being understood, for the
  avoidance of doubt, that the requirement of Counterparty to deliver such
  notice shall not limit Counterparty’s obligations with respect to Notice of
  Exercise or Dealer’s obligations with respect to Delivery Obligation, each as
  set forth above, in any way).

  
	
   

  	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
   

  	
  To the extent Dealer is obligated to deliver Shares
  hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.11 and 9.12 of the
  Equity Definitions will be applicable as if “Physical Settlement” applied to
  the Transaction; provided that the
  Representation and Agreement contained in Section 9.11 of the Equity
  Definitions shall be modified by excluding any representations therein
  relating to restrictions, obligations, limitations or requirements under
  applicable securities laws as a result of the fact that

  

 

 6
 

 

	
  

  	
   

  	
  Buyer is the issuer of the Shares.

  
	
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of
  Adjustment:

  	
   

  	
  Notwithstanding Section 11.2 of the Equity
  Definitions, upon the occurrence of any event or condition set forth in
  Sections 12.4(a), (b), (c), (d) or (e) of the Indenture, the Calculation
  Agent shall make the corresponding adjustment in respect of any one or more
  of the Number of Options, the Option Entitlement and any other variable
  relevant to the exercise, settlement or payment of the Transaction, to the
  extent an analogous adjustment is made under the Indenture. Immediately upon
  the occurrence of any Adjustment Event, Counterparty shall notify the
  Calculation Agent of such Adjustment Event; and once the adjustments to be
  made to the terms of the Indenture and the Convertible Debentures in respect
  of such Adjustment Event have been determined, Counterparty shall immediately
  notify the Calculation Agent in writing of the details of such adjustments.

  
	
   

  	
   

  	
   

  
	
  Extraordinary
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Merger Events:

  	
   

  	
  Notwithstanding Section 12.1(b) of the Equity
  Definitions, a “Merger Event” means the occurrence of any event or condition
  set forth in Section 12.11 of the Indenture.

  
	
   

  	
   

  	
   

  
	
  Consequences of
  Merger Events:

  	
   

  	
  Notwithstanding Section 12.2 of the Equity
  Definitions, upon the occurrence of a Merger Event, the Calculation Agent
  shall make the corresponding adjustment in respect of any adjustment under
  the Indenture to any one or more of the nature of the Shares, the Number of
  Options, the Option Entitlement and any other variable relevant to the
  exercise, settlement or payment for the Transaction, to the extent an
  analogous adjustment is made under the Indenture; provided that
  such adjustment shall be made without regard to any adjustment to the Conversion
  Rate for the issuance of additional Shares as set forth in Sections
  12.1(e)(1), (2) and (3) of the Indenture. Notwithstanding the foregoing, upon
  the occurrence of a Merger Event that constitutes a “Public Acquirer Change
  in Control”, as defined in the Indenture, with respect to which Counterparty
  elects to adjust the terms of the Convertible Debentures in accordance with
  Section 12.1(e)(4) of the Indenture (such a Public Acquirer Change in
  Control, a “PACC Event”), the Calculation
  Agent may adjust in good faith and a commercially reasonable manner any one
  or more of the nature of the Shares, the Number of Options, the Option
  Entitlement and any other variable relevant to the exercise, settlement or
  payment for the Transaction to preserve the fair value of the Transaction to
  Dealer (such adjustments, the “Public Acquirer Change
  in 

  

 

 7
 

 

	
  

  	
   

  	
  Control Adjustments”); provided that, as a condition precedent to the adjustments
  contemplated above, Counterparty and, if Counterparty is not the issuer of
  the “Public Acquirer Common Stock”, as defined in the Indenture, the issuer
  of the Public Acquirer Common Stock and Dealer, shall, prior to the effective
  date of such Public Acquirer Change in Control, have entered into such
  documentation containing representations, warranties and agreements relating
  to securities law and other issues as requested by Dealer that Dealer has
  determined, in its reasonable discretion, to be reasonably necessary or
  appropriate to allow Dealer to continue as party to the Transaction, as
  adjusted, and to preserve its hedging or hedge unwind activities in
  connection with the Transaction in a manner compliant with applicable legal,
  regulatory or self-regulatory requirements, or with related policies and
  procedures applicable to Dealer.

  
	
   

  	
   

  	
   

  
	
  Nationalization,
  Insolvency or Delisting:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination); provided that
  in addition to the provisions of Section 12.6(a)(iii) of the Equity
  Definitions, it will also constitute a Delisting if the Exchange is located
  in the United States and the Shares are not immediately re-listed, re-traded
  or re-quoted on any of the New York Stock Exchange, the American Stock
  Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or their
  respective successors); if the Shares are immediately re-listed, re-traded or
  re-quoted on any such exchange or quotation system, such exchange or
  quotation system shall thereafter be deemed to be the Exchange.

  
	
   

  	
   

  	
   

  
	
  Additional Disruption
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)   Change in Law:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (b)   Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Determining
  Party:

  	
   

  	
  For all applicable Additional Disruption Events,
  Dealer

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and
  Acknowledgments

  	
   

  	
   

  
	
  Regarding
  Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  3.     Calculation Agent:

  	
   

  	
  Dealer.

  
	
   

  	
   

  	
   

  
	
  4.     Account Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dealer Payment
  Instructions:

  	
   

  	
   

  
				

 

 8
 

 

	
  Citibank, N.A.

  	
   

  	
   

  
	
  Ref: 

  	
   

  	
   

  
	
  A/C# 

  	
   

  	
   

  
	
  ABA: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Counterparty
  Payment Instructions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To be provided
  by Counterparty.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  5.     Offices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Office of
  Dealer for the Transaction is:

  	
   

  
	
  390 Greenwich Street,
  New York, NY 10013

  
	
   

  
	
  The Office of
  Counterparty for the Transaction is:

  
	
  176 South Street,
  Hopkinton, MA 01748

  
	
   

  
	
  6.     Notices: For
  purposes of this Confirmation:

  
	
   

  
	
  (a)         Address for notices or
  communications to Counterparty:

  
	
   

  
	
  To:

  	
   

  	
  EMC Corporation

  
	
  Attn:

  	
   

  	
  Office of General Counsel

  
	
  Telephone:

  	
   

  	
  (508) 435-1000

  
	
  Facsimile:

  	
   

  	
  (508) 497-6915

  
	
   

  	
   

  	
   

  
	
  (b)        Address for notices or
  communications to Dealer:

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Citibank, N.A.

  
	
   

  	
   

  	
  390 Greenwich
  Street

  
	
   

  	
   

  	
  New York, NY
  10013

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Equity Derivatives

  
	
  Telephone:

  	
   

  	
  (212) 723-7357

  
	
  Facsimile:

  	
   

  	
  (212) 723-8328

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Citibank, N.A.

  
	
   

  	
   

  	
  250 West Street,
  10th Floor

  
	
   

  	
   

  	
  New York, NY
  10013

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  GCIB Legal Group—Derivatives

  
	
  Telephone:

  	
   

  	
  (212) 723-2944

  
	
  Facsimile:

  	
   

  	
  (212) 801-4109

  
					

 

7.     Representations,
Warranties and Agreements:

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

(i)            On the
Trade Date and each date on which Counterparty delivers a Notice of Exercise
relating to an Exercise Date that is or is following the Independent Threshold
Date (other than any Exercise Date occurring during the period from and
including November 1, 2011 to and including the Expiration Date) (A) none of
Counterparty and its officers and directors is aware of any material nonpublic
information regarding Counterparty or the Shares and (B) all reports and other
documents filed by Counterparty with the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) when considered as a whole (with the more
recent such reports and documents deemed to amend inconsistent statements
contained in any earlier such reports and documents), do not contain any untrue
statement of a 

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

(ii)           (A) On
the Trade Date and each date on which Counterparty delivers a Notice of
Exercise relating to an Exercise Date that is or is following the Independent
Threshold Date (other than any Exercise Date occurring during the period from
and including November 1, 2011 to and including the Expiration Date), the
Shares or securities that are convertible into, or exchangeable or exercisable
for Shares, are not, and will not be, subject to a “restricted period,” as such
term is defined in Regulation M under the Exchange Act (“Regulation M”)
and (B) Counterparty is not engaged in and will not engage in any “distribution,”
as such term is defined in Regulation M, other than a distribution meeting the
requirements of the exceptions set forth in sections 101(b)(10) and 102(b)(7)
of Regulation M, until the second Exchange Business Day immediately following
the Trade Date or the last day of the related Observation Period, as the case
may be.

(iii)          On
the Trade Date, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall directly or indirectly (including,
without limitation, by means of any cash-settled or other derivative instrument,
other than the Transaction and the convertible bond hedge transactions entered
into by Counterparty and each of JPMorgan Chase Bank, N.A, Dresdner Bank AG,
New York Branch and Deutsche Bank AG, London Branch on the Trade Date
simultaneously with the Transaction) purchase, offer to purchase, place any bid
or limit order that would effect a purchase of, or commence any tender offer
relating to, any Shares (or an equivalent interest, including a unit of
beneficial interest in a trust or limited partnership or a depository share) or
any security convertible into or exchangeable or exercisable for Shares, except
through Goldman, Sachs & Co.

(iv)          Without
limiting the generality of Section 13.1 of the Equity Definitions, Counterparty
acknowledges that 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.

(v)           Without
limiting the generality of Section 3(a)(iii) of the Agreement, the Transaction
will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

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

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

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

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

(x)            The
representations and warranties of Counterparty set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement dated as of November 13, 2006
between Counterparty and Goldman, Sachs & Co., Lehman Brothers Inc. and
Citigroup Global Markets Inc. as representatives of the Initial Purchasers
party thereto (the “Purchase Agreement”)
are true and correct as of the Trade Date, the Effective Date and the
Additional Premium Payment Date and are hereby deemed to be repeated to Dealer
as if set forth herein.

 10
 

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

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

(c)           Each of Dealer
and Counterparty acknowledges that the offer and sale of the Transaction to it
is intended to be exempt from registration under the Securities Act of 1933, as
amended (the “Securities Act”), by virtue of
Section 4(2) thereof.  Accordingly,
Counterparty represents and warrants to Dealer 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 and its investments in and liabilities in
respect of the Transaction, which it understands are not readily marketable,
are not disproportionate to its net worth, and it is able to bear any loss in
connection with the Transaction, including the loss of its entire investment in
the Transaction, (ii) it is an “accredited investor” as that term is defined in
Regulation D as promulgated under the Securities Act, (iii) it is entering into
the Transaction for its own account and without a view to the distribution or
resale thereof, (iv) the assignment, transfer or other disposition of the
Transaction has not been and will not be registered under the Securities Act
and is restricted under this Confirmation, the Securities Act and state
securities laws, and (v) its financial condition is such that it has no need
for liquidity with respect to its investment in the Transaction and no need to
dispose of any portion thereof to satisfy any existing or contemplated
undertaking or indebtedness and is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice),
and understands and accepts, the terms, conditions and risks of the
Transaction.

(d)           Each of Dealer
and Counterparty agrees and acknowledges (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of Title 11 of the United
States Code (the “Bankruptcy Code”),
with respect to which each payment and delivery hereunder is a “settlement
payment,” as such term is defined in Section 741(8) of the Bankruptcy Code, and
(ii) a “swap agreement,” as such term is defined in Section 101(53B) of the
Bankruptcy Code, with respect to which each payment and delivery hereunder is a
“transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code,
and (B) that Dealer is entitled to the protections afforded by, among other
sections, Section 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the
Bankruptcy Code.

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

8.  Other Provisions:

(a)           Right to
Extend.  Dealer may postpone
any Settlement Date or any other date of delivery by Dealer, with respect to
some or all of the relevant Options, if Dealer determines, in its reasonable
discretion, that such extension is reasonably necessary or appropriate to
preserve Dealer’s hedging or hedge unwind activity hereunder in light of
existing liquidity conditions or to enable Dealer to effect purchases of Shares
in connection with its hedging, hedge unwind or settlement activity hereunder
in a manner that would, if Dealer were Counterparty or an affiliated purchaser
of Counterparty, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and procedures applicable
to Dealer.

(b)           Additional Termination Events.  The occurrence of (i) an event of default
with respect to Counterparty under the terms of the Convertible Debentures as
set forth in Section 5.1 of the Indenture that results in an acceleration of
the Convertible Debentures pursuant to the terms of the Indenture, (ii) an
Amendment Event or (iii) the occurrence of a PACC Termination Event shall be an
Additional Termination Event with respect to which the Transaction is the sole
Affected Transaction and Counterparty is the sole Affected Party, and Dealer
shall be the party entitled to designate an Early Termination Date pursuant to
Section 6(b) of the Agreement.

“Amendment Event”
means that Counterparty amends, modifies, supplements or obtains a waiver in
respect of any term of the Indenture or the Convertible Debentures governing 

 11
 

the principal amount,
coupon, maturity, repurchase obligation of Counterparty, redemption right of
Counterparty, any term relating to conversion of the Convertible Debentures
(including changes to the conversion price, conversion settlement dates or
conversion conditions), or any term that would require consent of the holders
of not less than 100% of the principal amount of the Convertible Debentures to
amend, in each case without the prior consent of Dealer, such consent not to be
unreasonably withheld.

“PACC Termination Event”
means a PACC Event with respect to which (x) following good faith consultation
with Counterparty, the Calculation Agent determines that no Public Acquirer Change
in Control Adjustments would produce a commercially reasonable result or (y)
the Public Acquirer Change in Control Adjustments were not made because any of
the documentation requirements for such adjustments were not met.

(c)           Alternative Calculations and Payment on Early Termination and on
Certain Extraordinary Events. 
If Dealer shall owe Counterparty any amount pursuant to Section 12.2 of
the Equity Definitions and “Consequences of Merger Events” above, or Sections 12.3,
12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of a Merger
Event, in which the consideration or proceeds to be paid to holders of Shares
consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement
(except in the event of an Event of Default in which Counterparty is the
Defaulting Party or a Termination Event in which Counterparty is the Affected
Party, that resulted from an event or events within Counterparty’s control) (a “Payment Obligation”), Counterparty shall have the right, in
its sole discretion, to require Dealer to satisfy any such Payment Obligation
by the Share Termination Alternative (as defined below) by giving irrevocable
telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, by 4:00 P.M. New York City time on the Merger Date, Announcement Date or
Early Termination Date, as applicable (“Notice of Share
Termination”).  Upon such Notice
of Share Termination, the following provisions shall apply on the Scheduled
Trading Day immediately following the Merger Date, Announcement Date or Early Termination
Date, as applicable:

	
  Share Termination Alternative:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery

  	
   

  	
   

  
	
  Property:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Unit Price:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery Unit:

  	
   

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

  

 

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  holder shall be deemed to have elected to receive
  the maximum possible amount of cash.

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other applicable provisions:

  	
   

  	
  If Share Termination Alternative is applicable, the
  provisions of Sections 9.8, 9.9, 9.11 and 9.12 of the Equity Definitions will
  be applicable as if “Physical Settlement” applied to the Transaction, except
  that all references to “Shares” shall be read as references to “Share
  Termination Delivery Units”; provided
  that the Representation and Agreement contained in Section 9.11 of the Equity
  Definitions shall be modified by excluding any representations therein
  relating to restrictions, obligations, limitations or requirements under
  applicable securities laws as a result of the fact that Buyer is the issuer
  of any Share Termination Delivery Units (or any part thereof).

  

 

(d)           Disposition of Hedge Shares. 
Counterparty hereby agrees that if, in
the good faith reasonable judgment of Dealer, the Shares (the “Hedge Shares”) acquired by Dealer for the
purpose of hedging its obligations pursuant to the Transaction cannot be sold
in the U.S. public market by Dealer without registration under the Securities
Act, Counterparty shall, at its election: (i) in order to allow Dealer
to sell the Hedge Shares in a registered offering, make available to Dealer an
effective registration statement under the Securities Act to cover the resale
of such Hedge Shares and (A) enter into an agreement, in form and substance
satisfactory to Dealer, substantially in the form of an underwriting agreement
for a registered offering, (B) provide
accountant’s “comfort” letters in customary form for registered offerings of
equity securities, (C) provide disclosure opinions of nationally recognized
outside counsel to Counterparty reasonably acceptable to Dealer, (D) provide
other customary opinions, certificates and closing documents customary in form
for registered offerings of equity securities and (E) afford Dealer a
reasonable opportunity to conduct a “due diligence” investigation with respect
to Counterparty customary in scope for underwritten offerings of equity
securities; provided, however,
that if Dealer, in its sole reasonable discretion, is not satisfied with access
to due diligence materials, the results of its due diligence investigation, or
the procedures and documentation for the registered offering referred to above,
then clause (ii) or clause (iii) of this Section 8(d) shall apply at the
election of Counterparty; (ii) in order to allow Dealer to sell the Hedge
Shares in a private placement, use its best efforts to enter into a private
placement agreement substantially similar to private placement purchase
agreements customary for private placements of equity securities, in form and
substance satisfactory to Dealer, including customary representations, covenants,
blue sky and other governmental filings and/or registrations, indemnities to
Dealer, due diligence rights (for Dealer or any designated buyer of the Hedge
Shares from Dealer), opinions and certificates and such other documentation as
is customary for private placements agreements, all reasonably acceptable to
Dealer (in which case, the Calculation Agent shall make any adjustments to the
terms of the Transaction that are necessary, in its reasonable judgment, to
compensate Dealer for any discount from the public market price of the Shares
incurred on the sale of Hedge Shares in a private placement); or (iii) purchase
the Hedge Shares from Dealer at the VWAP Price on such Exchange Business Days,
and in the amounts, requested by Dealer. 
“VWAP Price” means, on any
Exchange Business Day, the per Share volume-weighted average price as displayed
under the heading “Bloomberg VWAP” on Bloomberg page EMC.N <equity> VAP
(or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m.
(New York City time) on such Exchange Business Day (or if such volume-weighted
average price is unavailable, the market value of one Share on such Exchange
Business Day, as determined by the Calculation Agent using a volume-weighted
method).  For the avoidance of doubt,
Counterparty is not obligated to purchase Shares under any circumstances under
this Section 8(d) unless it elects to do so pursuant to Section 8(d)(iii).

(e)           Repurchase Notices.  Counterparty
shall, on any day on which Counterparty effects any repurchase of Shares,
promptly give Dealer a written notice of such repurchase (a “Repurchase Notice”) on such day if, following such
repurchase, the Notice Percentage as determined on such day is (i) greater than
6% and (ii) greater by 0.5% than the Notice Percentage included in the
immediately preceding Repurchase Notice (or, in the case of the first such
Repurchase Notice, greater than the Notice Percentage as of the date hereof).  The “Notice Percentage”
as of any day is the fraction, expressed as a percentage, the numerator of
which is the Number of Shares and the denominator of which is the number of
Shares

 13
 

outstanding on such day.  In the event that Counterparty fails to
provide Dealer with a Repurchase Notice on the day and in the manner specified
in this Section 8(e) then Counterparty agrees to indemnify and hold harmless Dealer,
its affiliates and their respective directors, officers, employees, agents and
controlling persons (Dealer and each such person being an “Indemnified
Party”) from and against any and all losses, claims, damages and
liabilities (or actions in respect thereof), joint or several, to which such
Indemnified Party may become subject under applicable securities laws,
including without limitation, Section 16 of the Exchange Act, relating to or
arising out of such failure.  If for any
reason the foregoing indemnification is unavailable to any Indemnified Party or
insufficient to hold harmless any Indemnified Party, then Counterparty shall
contribute, to the maximum extent permitted by law, to the amount paid or
payable by the Indemnified Party as a result of such loss, claim, damage or
liability.  In addition, Counterparty
will reimburse any Indemnified Party for all expenses (including reasonable
counsel fees and expenses) as they are incurred (after notice to Counterparty)
in connection with the investigation of, preparation for or defense or
settlement of any pending or threatened claim or any action, suit or proceeding
arising therefrom, whether or not such Indemnified Party is a party thereto and
whether or not such claim, action, suit or proceeding is initiated or brought
by or on behalf of Counterparty.  This
indemnity shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant
to this Confirmation or the Agreement shall inure to the benefit of any
permitted assignee of Dealer.

(f)            Transfer and Assignment. 
Neither party may transfer any of its rights or obligations under the
Transaction without the prior written consent of the non-transferring party; provided that, without the consent of Counterparty, Dealer
may 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,
including, but not limited to, Citigroup Global Markets Inc., that are
wholly-owned, directly or indirectly, by Citigroup Inc., or any successor
thereto (each, a “Dealer Affiliate”),
where Counterparty shall have recourse to Dealer in the event of the failure by
a Dealer Affiliate to perform any of such obligations hereunder; provided further that at any time at which the Equity
Percentage exceeds 9.0%, if Dealer, in its discretion, is unable to effect a
transfer or assignment to a third party in accordance with the requirements set
forth above after its commercially reasonable efforts on pricing terms
reasonably acceptable to Dealer such that the Equity Percentage is reduced to
9.0% or less, Dealer may designate any Scheduled Trading Day as an Early Termination
Date with respect to a portion (the “Terminated Portion”)
of the Transaction, such that the Equity Percentage following such partial
termination will be equal to or less than 9.0%. 
In the event that Dealer so designates an Early Termination Date with
respect to a portion of the Transaction, a payment or delivery shall be made
pursuant to Section 6 of the Agreement and Section 8(c) of this Confirmation as
if (i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to the Terminated Portion of the
Transaction, (ii) Counterparty shall be the sole Affected Party with respect to
such partial termination and (iii) such portion of the Transaction shall be the
only Terminated Transaction.  The “Equity Percentage” as of any day is the fraction, expressed
as a percentage, (A) the numerator of which is the sum of (i) the lesser of (1)
5% and (2) the number of Shares that Dealer beneficially owns (within the
meaning of Section 13 of the Exchange Act) on such day, other than any Shares
so owned as a hedge of the Transaction, and (ii) the Number of Shares hereunder
and (B) the denominator of which is the number of Shares outstanding on such
day.  Counterparty may transfer or assign
its rights and obligations hereunder and under the Agreement, in whole or in
part, to any party with the consent of Dealer, such consent not to be
unreasonably withheld.

(g)           Staggered Settlement.  If the Staggered Settlement Equity Percentage
as of any Exchange Business Day during the relevant “Conversion Reference
Period”, as defined in the Indenture, is greater than 4.5%, Dealer may, by notice to Counterparty prior to any
Settlement Date (a “Nominal Settlement Date”),
elect to deliver the Shares on two or more dates (each, a “Staggered Settlement Date”) or at two or
more times on the Nominal Settlement Date as follows:

(i)            in such notice, Dealer will specify to Counterparty
the related Staggered Settlement Dates (each of which will be on or prior to
such Nominal Settlement Date, but not prior to the beginning of such “Conversion
Reference Period”) or delivery times and how it will allocate the Shares it is
required to deliver under “Delivery Obligation” (above) among the Staggered
Settlement Dates or delivery times; and

 14
 

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

The “Staggered Settlement
Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the sum of (i) the number of Shares
that Dealer or any of its affiliates subject to aggregation with Dealer beneficially
own (within the meaning of Section 13 of the Exchange Act) on such day, other
than any Shares so owned as a hedge of the Transaction, and (ii) the Number of
Shares hereunder and (B) the denominator of which is the number of Shares
outstanding on such day.

(h)           Disclosure.  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.

(i)            No Set-off.  The
provisions of Section 2(c) of the Agreement shall not apply to the Transaction.  Each party waives any and all rights it may
have to set-off delivery or payment obligations it owes to the other party
under the Transaction against any delivery or payment obligations owed to it by
the other party, whether arising under the Agreement, under any other agreement
between parties hereto, by operation of law or otherwise.

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

(k)           Early Unwind.  In the
event the sale by Counterparty of the Convertible Debentures is not consummated
with the Initial Purchasers party to the Purchase Agreement pursuant to the
Purchase Agreement for any reason by the close of business in New York on November
17, 2006 (or such later date as agreed upon by the parties, which in no event
shall be later than November 22, 2006) (November 17, 2006 or such later date
being the “Early Unwind Date”), the
Transaction shall automatically terminate (the “Early Unwind”),
on the Early Unwind Date and the Transaction and all of the respective rights
and obligations of Dealer and Counterparty thereunder shall be cancelled and
terminated.  Following such termination
and cancellation, each party shall be released and discharged by the other
party from and agrees not to make any claim against the other party with
respect to any obligations or liabilities of either party arising out of and to
be performed in connection with the Transaction either prior to or after the
Early Unwind Date.  Dealer and
Counterparty represent and acknowledge to the other that, upon an Early Unwind,
all obligations with respect to the Transaction shall be deemed fully and
finally discharged.

(l)            Governing
Law.  THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE).

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

 15

Counterparty hereby agrees (a) to check
this Confirmation carefully and immediately upon receipt so that errors or
discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by Dealer) correctly sets forth
the terms of the agreement between Dealer and Counterparty with respect to the
Transaction, by manually signing this Confirmation or this page hereof as
evidence of agreement to such terms and providing the other information
requested herein and immediately returning an executed copy to Equity
Derivatives, Citibank, N.A., 390 Greenwich Street, New York, New York 10013,
Facsimile No. (212) 723-8328.

	
   

  	
  Yours faithfully,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
    /s/ Herman
  Hirsch

  
	
   

  	
   

  	
  Name: Herman Hirsch

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 

	
  Agreed and accepted by:

  	
   

  
	
   

  	
   

  
	
  EMC CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Irina
  Simmons

  	
   

  
	
   

  	
   Name: Irina
  Simmons

  
	
   

  	
   Title: Senior
  Vice President and Treasurer

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