Document:

Exhibit 4.1

 

Exhibit 4.1

AMENDED AND RESTATED

JACK IN THE BOX INC.

DEFERRED COMPENSATION PLAN FOR

NON-MANAGEMENT DIRECTORS

1. General Provisions

	 	1.1	 	Purpose of Plan
	 
	 	 	 	The purpose of the Plan is to enhance the profitability and value of the Company for
the benefit of its stockholders by providing a deferred compensation program to
attract and retain qualified non-management directors who have made or will make
important contributions to the success of the Company. No employees of the Company
or any Subsidiary are eligible to participate in the Plan; accordingly, the Plan is
not intended to be subject to the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”).
	 
	 	1.2	 	Definitions

	 	(a)	 	“Amended and Restated Effective Date” means November 9, 2006.
	 
	 	(b)	 	“Beneficiary” means the person or persons (including legal
entities) who have been designated by a Participant in accordance with Section
3.7 hereof to receive benefits under the Plan following such Participant’s
death.
	 
	 	(c)	 	“Board” means the Board of Directors of the Company.
	 
	 	(d)	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	(e)	 	“Company” means Jack in the Box Inc.
	 
	 	(f)	 	“Compensation” means all or any part of any cash consideration
to be paid to a Non-Management Director by the Company as directors’ fees or
retainers.
	 
	 	(g)	 	“Date of Crediting” means, with respect to any Compensation
deferred pursuant to the Plan, the first day of the month following the date
when such Compensation would otherwise be paid to a Participant.
	 
	 	(h)	 	“Determination Date” means the last business day of each
calendar quarter.
	 
	 	(i)	 	“Director” means any member of the Board.
	 
	 	(j)	 	“Later Distribution Date” means any date of distribution after
the 60th day following a Participant’s Termination and on or before
two years following a Participant’s Termination.
	 
	 	(k)	 	“Market Value” means, in the case of Stock, the average of the
closing prices of the Stock as reported by the New York Stock Exchange
Composite Tape during the ten (10) trading days immediately preceding the date
in question, or, if the Stock is not quoted on such composite tape or if such
Stock is not listed on such exchange, on the principal national securities
exchange in the United States registered under the Securities Exchange Act of
1934, as amended, on which the Stock is listed, or, if the Stock is not then
reported thereon, any similar system then in use, as selected by the Board, or
if no such quotations are available, the fair market value on the date in
question of share of the Stock as determined by a majority of the Directors in
good faith.
	 
	 	(l)	 	“Non-Management Director” means any Director who is not an
officer or employee of the Company or any of the Company’s directly or
indirectly held subsidiaries, nor has otherwise been such an employee.

 

 

	 	(m)	 	“Participant” means any Non-Management Director who
participates in the Plan, as described in Section 1.3 hereof.
	 
	 	(n)	 	“Plan” means this Amended and Restated Deferred Compensation
Plan for Non-Management Directors.
	 
	 	(o)	 	“Securities Act” means the Securities Act of 1933, as amended.
	 
	 	(p)	 	“Stock” means the Company’s $.01 par value common stock or any
such other security outstanding upon, and resulting from, the reclassification
or other change of the Company’s common stock, including, without limitation,
any stock split, stock dividend, or other distributions of stock in respect of
Stock, or any reverse stock split, or recapitalization of the Company or any
merger or consolidation of the Company with any subsidiary or affiliate, or any
other transaction.
	 
	 	(q)	 	“Subsidiary” means all persons with whom the Company would be
considered a single employer under Section 414(b) or (c) of the Code.
	 
	 	(r)	 	“Termination” means the time when a Participant ceases the
performance of services, whether as a Director or otherwise, for the Company
and all Subsidiaries under any circumstances, and the Company and the
Subsidiaries do not anticipate a resumption of such services, whether as a
Director or otherwise.
	 
	 	(s)	 	“Year” means a calendar year unless otherwise specified.

	 	1.3	 	Eligibility and Participation
	 
	 	 	 	To be eligible to participate in the Plan, an individual must:

	 	(a)	 	meet the definition of a Non-Management Director, and
	 
	 	(b)	 	be entitled to Compensation.

	 	 	 	An eligible Non-Management Director becomes a Participant in the Plan upon the
effective date of an agreement executed by the Company and such Non-Management
Director pursuant to Section 2.1(c).
	 
	 	1.4	 	Administration of the Plan
	 
	 	 	 	The Board shall administer the Plan and, in connection therewith, shall have full
power and full and sole discretion to impose on any deferral any terms and
conditions in addition to those set forth in the Plan, and consistent with the terms
and conditions of the Plan and the requirements of Code Section 409A, to determine
the rights and benefits and all claims, demands and actions arising out of the
provisions of the Plan of any Participant, Beneficiary, deceased Participant or
other person having or claiming to have any interest under the Plan; to construe and
interpret the Plan; to establish rules and regulations in relation to the Plan; to
delegate responsibilities to others to assist it in administering the Plan or
performing any responsibilities hereunder; and to perform all other acts it believes
necessary or appropriate in connection with the administration of the Plan. All
interpretations, constructions, determinations and decisions of the Board in
relation to the Plan shall be final, binding and conclusive on all Participants,
Beneficiaries and other persons. A majority of the Board, consisting of all Board
members, except the individual member who is being considered, shall have full power
and sole discretion to determine whether a Director is eligible to participate in
the Plan. The Plan is intended to be a nonqualified deferred compensation plan that
complies with the provisions of Section 409A of the Code, and, notwithstanding any
provisions of the Plan to the contrary, the Plan shall be operated, administered and
interpreted consistent with such intent, and any provision that would conflict with
such intent shall not be valid or enforceable.

 

 

	 	1.5	 	Power to Amend, Modify or Terminate
	 
	 	 	 	The power to amend, modify or terminate the Plan at any time is reserved to the
Board; provided, however, that no amendment, modification or termination
which would be materially adverse to the previously accrued rights of a Participant
or Beneficiary under the Plan may apply to or affect the terms of any deferral of
Compensation deferred prior to the effective date of such amendment, modification or
termination, without the consent of the Participant or Beneficiary affected thereby;
provided further, however, that distributions under the Plan
shall after any such termination be made in accordance with the terms and conditions
of the Plan as in effect immediately prior to such termination except as otherwise
determined by the Board in accordance with Section 409A of the Code.
Notwithstanding any other provisions of the Plan to the contrary, the Board may
amend the Plan, either retroactively or prospectively, without the consent of any
Participant, if the Board determines in its discretion that such amendment is
required or advisable for the Company, any direct or indirect subsidiary of the
Company or the Plan to satisfy, comply with or meet the requirements of any law,
regulation (including, without limitation, Code Section 409A and the regulations and
administrative guidance promulgated thereunder), rule or accounting standard.

	2.	 	Deferral Option

	 	2.1	 	Terms and Conditions

	 	(a)	 	Deferral option available — The option for deferral of
Compensation offered under the Plan shall be accounted for by the Deferred
Stock Equivalent Account as described in Section 2.2 hereof. With respect to
Non-Management Directors who are active participants in the Plan as in effect
immediately prior to the Amended and Restated Effective Date, the written
deferral agreement in effect with respect to each such Non-Management Director
for purposes of the Plan immediately prior to the Amended and Restated
Effective Date shall continue to apply with respect to the Compensation
otherwise payable to such Non-Management Director for services to be performed
on or after the Amended and Restated Effective Date. In the case of the first
Year in which a Non-Management Director becomes eligible to participate in the
Plan (provided that such individual does not, and is not otherwise
eligible to, participate in any other account balance plan (as such term is
defined for purposes of Code Section 409A) of the Company or a Subsidiary),
such Non-Management Director may, within thirty (30) days after the date such
Non-Management Director becomes eligible to participate in the Plan, elect, by
submitting a written agreement to the Board in accordance with Section 2.1(c)
hereof, to defer all or a specified portion of the Compensation otherwise
payable to such Non-Management Director for services to be performed subsequent
to such agreement being received by the Board pursuant to the deferral option
provided under Section 2.2 hereof. An existing eligible Non-Management
Director may elect, by submitting a written agreement to the Board in
accordance with Section 2.1(c) hereof, to defer all or a specified portion of
the Compensation otherwise payable to such Non-Management Director for services
to be performed on or after the first (1st) day of January following the date
such agreement is received by the Board pursuant to the deferral option
provided under Section 2.2 hereof. A Participant’s election to defer
Compensation under this Section 2.1(a) shall continue in effect, unless earlier
modified in accordance with the Plan, until such Participant’s Termination. In
the event that a Participant shall be elected to serve for terms including more
than one Year, such eligible Non-Management Director may modify such a written
agreement, either to terminate, increase or decrease the portion of his or her
future Compensation to be deferred in accordance with the Plan, by providing a
written modification of such agreement to the Board, such modification to be
effective with respect to Compensation otherwise payable to such Non-Management
Director for services to be performed on or after the first (1st) day of
January following the date such written modification is received by the Board.
	 
	 	(b)	 	Source of terms and conditions — Any deferral under the
Plan shall be subject to the provisions of the Plan, any other conditions
imposed by law, and the terms of any award of Compensation. Approval of a
deferral of Compensation shall in no event constitute a waiver by the Company
of any conditions to the receipt of such Compensation.

 

 

	 	(c)	 	Written agreement — Every deferral made under the Plan
shall be made pursuant to a written agreement, in form and substance approved
by the Board, signed by the Participant and on behalf of the Company. Any
modifications or amendments to such agreement shall be in accordance with the
terms and conditions of the Plan and shall also
be in writing signed by such parties. In the event of any conflict or
inconsistency between the terms of such written agreement and the terms of
the Plan, the terms of the Plan shall control.

	 	2.2	 	Deferred Stock Equivalent Account

	 	(a)	 	Stock equivalents — Upon execution of a written
agreement pursuant to Section 2.1(c) above, a “Deferred Stock Equivalent
Account” shall be established in the name of each Participant. Stock
equivalents and fractions thereof shall be credited to such Deferred Stock
Equivalent Account in an amount determined by dividing the amount of
Compensation to be deferred under the Plan by the Market Value of the Stock on
the Date of Crediting. Upon the occurrence of any of the events described in
[Section 4.2 of the Jack in the Box 2004 Stock Incentive Plan], the number of
outstanding Stock equivalents credited to each Deferred Stock Equivalent
Account shall, to the extent appropriate, be adjusted accordingly by the Board.
	 
	 	(b)	 	Time of crediting — Deferrals in Stock equivalents
hereunder shall be credited to a Participant’s Deferred Stock Equivalent
Account on the Date of Crediting.
	 
	 	(c)	 	Dividend Equivalents — To the extent dividends on the
Stock are paid, dividend equivalents and fractions thereof on the outstanding
Stock equivalents and fractions thereof credited to a Participant’s Deferred
Stock Equivalent Account shall be awarded, converted to additional Stock
equivalents and credited to the Deferred Stock Equivalent Account as of the
dividend payment dates. The number of Stock equivalents to be credited as of
each such date shall be determined by dividing the amount of the dividend
equivalent and fraction thereof by the Market Value of the Stock on the
dividend payment date. The Participant’s Deferred Stock Equivalent Account
shall continue to earn such dividend equivalents until the time of distribution
of a Participant’s Deferred Stock Equivalent Account.
	 
	 	(d)	 	Form of distribution — Distributions under the Deferred
Stock Equivalent Account shall be in shares of Stock equal to the number of
full shares of Stock equivalents credited to the Participant’s Deferred Stock
Equivalent Account on the date of distribution pursuant to Section 3.1, 3.2 or
3.3, as the case may be.
	 
	 	(e)	 	Full vesting — A Participant shall at all times be
fully vested in his or her Deferred Stock Equivalent Account.

	3.	 	Other Governing Provisions

	 	3.1	 	Time of distribution to Participant — Unless otherwise requested in
writing by a Participant in accordance with Section 3.3 hereof, the entire balance of
the Deferred Stock Equivalent Account of the Participant shall be paid to the
Participant in a single lump-sum on the 60th day following the Participant’s
Termination.
	 
	 	3.2	 	Distribution upon death — In the event of the Participant’s death, the
entire balance of the Deferred Stock Equivalent Account of such Participant shall be
paid to the Participant’s Beneficiary, but if no such Beneficiary is validly
designated, then such amount shall be paid to the Participant’s estate or as provided
by law. Such payment shall be made in a single lump-sum on the 60th day following the
Participant’s death.
	 
	 	3.3	 	Later Distribution Date — A Participant may submit to the Board a
written election for a Later Distribution Date applicable to all or any portion of the
Participant’s future Compensation deferred hereunder. Any such election shall be
submitted, and become effective, as part of a deferral election agreement (or a
modification of such an agreement) in accordance with the terms and conditions of
Section 2.1 hereof. Any distributions in accordance with such an election for a Later
Distribution Date shall be made in accordance with and subject to such election, the
provisions of the Plan, the terms and conditions of any award of Compensation and any
other conditions imposed by law, including, without limitation, to comply with Code
Section 409A.

 

 

	 	3.4	 	Acceleration prohibited — The acceleration of the time or schedule of
any payment due under the Plan is prohibited except as allowed by Code Section 409A
and/or the regulations and administrative guidance promulgated thereunder.
	 
	 	3.5	 	Company’s obligations unfunded — All benefits due a Participant or a
Beneficiary under the Plan are unfunded and unsecured and are payable out of the
general funds of the Company. No Participant or Beneficiary shall have any interest in
any specific asset of the Company or any direct or indirect subsidiary of the Company.
The Company, in its sole and absolute discretion, may establish a “grantor trust” for
the payment of benefits and obligations hereunder, the assets of which shall be at all
times subject to the claims of creditors of the Company as provided for in such trust,
provided that any such trust does not alter the characterization of the Plan as
an “unfunded plan” for purposes of ERISA and for tax purposes. Any such trust shall
make distributions in accordance with the terms of the Plan. To the extent that any
person acquires a right to receive payments from the Company under the Plan, such right
shall be no greater than the right of any unsecured general creditor of the Company.
	 
	 	3.6	 	No ownership rights prior to issuance of Stock – None of any
Participant, Beneficiary nor any other person shall not have any rights as a
stockholder of the Company with respect to the shares of Stock underlying a Deferred
Stock Equivalent Account, including the right to vote with respect to such shares of
Stock, until and after such shares of Stock have been actually issued to the
Participant or Beneficiary and transferred on the books and records of the Company or
its agent.
	 
	 	3.7	 	Compliance with laws and regulations — The Participant’s participation
herein and the obligation of the Company to deliver shares of Stock hereunder shall be
subject in all respects to (a) all applicable federal, state, local and non-United
States laws, rules and regulations, and (b) any registration, qualification, approvals
or other requirements imposed by any government or regulatory agency or body which the
Company shall, in its sole discretion, determine to be necessary or applicable.
Moreover, shares of Stock shall not be delivered hereunder if such delivery would be
contrary to applicable law or the rules of any stock exchange.
	 
	 	3.8	 	Investment representation — The Board may require each Participant,
Beneficiary or other person receiving shares of Stock under the Plan to represent and
agree with the Company in writing that such person is acquiring such shares for
investment without a view to the distribution thereof, and/or provide such other
representations and agreements as the Board may prescribe. The Board, as it deems
appropriate in its discretion, may impose such restrictions on the ownership and
transferability of the shares of Stock receivable under the Plan. The certificates
evidencing such shares may include any legend that the Board deems appropriate to
reflect any such restrictions.
	 
	 	3.9	 	Limits of liability — Any liability of the Company or any direct or
indirect subsidiary of the Company to any Participant or Beneficiary in relation to the
Plan shall be based solely upon contractual obligations created by the Plan. None of
the Company, any such subsidiary, any member of the Board nor any other person
participating in any determination of any question under the Plan, or in the
interpretation, administration or application of the Plan, shall have any liability, in
the absence of bad faith, to any party for any action taken or not taken in connection
with the Plan, except as may expressly be provided by statute. None of the Company nor
any such subsidiary shall be liable to any Participant, Beneficiary or any other person
as to any tax consequence expected, but not realized, by any Participant, Beneficiary
or other person in relation to participation in the Plan.
	 
	 	3.10	 	Beneficiary designation — A Participant may file with the Secretary of
the Company a written designation of a Beneficiary or Beneficiaries (subject to such
limitations as to the classes and number of Beneficiaries and contingent Beneficiaries
as the Board may from time to time prescribe) to receive, following the death of the
Participant, benefits payable under the Plan. The Board reserves the right to review
and approve Beneficiary designations. A Participant may from time to time revoke or
change any such designation of Beneficiary and any designation of Beneficiary under the
Plan shall be controlling over any other disposition, testamentary or otherwise;
provided, however, that if the Board shall be in doubt as to the right
of such Beneficiary to receive any benefits under the Plan, the Board may determine to
recognize only the rights of the legal representative of the Participant, in which case
the Company, the Board and the members thereof shall not be under any further liability
to anyone.

 

 

	 	3.11	 	Transferability of benefits — The right to receive payment of benefits
under the Plan shall not be transferred, assigned, alienated or pledged, or subject to
attachment or encumbrance of any kind, except by Beneficiary designation, will or
pursuant to the laws of descent and distribution.
	 
	 	3.12	 	Address of Participant or Beneficiary — A Participant shall keep the
Company apprised of his current address and that of any Beneficiary at all times during
his participation in the Plan. At the death of a Participant, a Beneficiary who is
entitled to receive payment of benefits under the Plan shall keep the Company apprised
of his current address until the entire amount to be distributed to him has been paid.
	 
	 	3.13	 	Effectiveness of the Plan — The Plan shall become effective as of the
Amended and Restated Effective Date, or, if later, upon approval of the Plan by the
Board.
	 
	 	3.14	 	Taxes — Any taxes required to be withheld under applicable federal,
state or local tax laws or regulations may be withheld from any payment due hereunder.
	 
	 	3.15	 	Successors – All obligations of the Company under the Plan shall be
binding on any successor to the Company, whether the existence of such successor is the
result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company, and the Company shall
require any such successor to expressly assume and agree in writing to perform the
obligations of the Company under the Plan in the same manner and to the same extent
that the Company would be required to perform such obligations if no such succession
had taken place.
	 
	 	3.16	 	No right of nomination — Nothing in the Plan shall be deemed to create
any obligation on the part of the Board to nominate any Director for reelection by the
Company’s stockholders.
	 
	 	3.17	 	Governing law — The Plan and all rights hereunder shall be governed by
and construed according to the laws of the State of California, without reference to
rules relating to conflict of law.
	 
	 	3.18	 	Gender — The use of masculine pronouns herein shall be deemed to
include both males and females.Unassociated Document

    

    Transaction

     

    
      	Date:	May 13, 2007
	 	 
	To:	CVS Caremark
              Corporation
	 	[                          
              ]
	 	Attention:        [
              ]
	 	 
	From:	Lehman Brothers, Inc acting
              as
              Agent
	 	Lehman Brothers OTC Derivatives
              Inc., acting as Principal
	 	Andrew Yare - Transaction
              Management Group
	 	Facsimile:	646-885-9546 (United
              States of America)
	 	Telephone:	212-526-9986

    

     

    Ref.
      Numbers: Global
      Deal ID: 3047652

     

    
      
        

      

    

    Dear
      Sir or Madam:

     

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

    

    This
      Confirmation evidences a complete and binding agreement between Party A and
      Party B as to the terms of the Transaction to which this Confirmation relates.
      This Confirmation shall supplement, form a part of, and be subject to an
      agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”)
      as if
      we had executed an agreement in such form (but without any Schedule) on the
      Trade Date of the Transaction. In the event of any inconsistency between the
      provisions of that agreement, or the Agreement and this Confirmation, this
      Confirmation will prevail for the purpose of the Transaction. 

     

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

     

    

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

     

    

    
      	
              Agent:

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

            
	
              Trade
                Date:

            	
              May
                13, 2007

            
	
              Buyer:

            	
              Party
                B

            

    

     

    LEHMAN
      BROTHERS

    745
      SEVENTH AVENUE

    NEW
      YORK
      NY 10019

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Seller:

            	
              Party
                A

            
	
              Shares:

            	
              Common
                stock, par value USD 0.01 per share, of CVS
                Caremark Corporation
                (the “Issuer”)
                

            
	
              Ticker
                Symbol:

            	 (“CVS”)
	
              Prepayment:

            	
              Applicable

            
	
              Prepayment
                Amount:

            	
              As
                specified in Schedule A

            
	
              Prepayment
                Date: 

            	
              One
                Exchange Business Day following the Trade Date.

            
	
              Initial
                Hedge Period: 

            	
              The
                period (the “Initial
                Hedge Period”)
                commencing on the Scheduled Trading Day immediately following the
                Trade
                Date and ending on the Exchange Business Day on which Party A completes
                the purchase of a number of Shares necessary to establish its initial
                hedge position with respect to the Transaction (such date, the
                “Hedge
                Period End Date”).
                On the 1st
                Scheduled Trading Day immediately following the Hedge Period End
                Date,
                Party A shall provide written notice (the “Confirmation
                Pricing Supplement”)
                to Party B in substantially the form attached hereto as Exhibit A,
                of the
                Hedging Price, Maximum Shares A, Maximum Shares B, Minimum Shares
                A,
                Minimum Shares B and first day of the Trading Period. Upon receipt
                of the
                Confirmation Pricing Supplement, Party B shall promptly execute and
                return
                the Confirmation Pricing Supplement to Party A; provided
                that Party B’s failure to so execute and return the Confirmation Pricing
                Supplement shall not affect the binding nature of the Confirmation
                Pricing
                Supplement, and the terms set forth therein, if accurately determined
                pursuant to the terms of this Confirmation, shall be binding on Party
                B to
                the same extent, and with the same force and effect, as if Party
                B had
                executed a written version of the Confirmation Pricing
                Supplement.

            
	
              Hedging
                Price:

            	
              The
                arithmetic average of the 10b-18 VWAPs for all Scheduled Trading
                Days in
                the Initial Hedge Period.

            
	
              Exchange:

            	
              New
                York Stock Exchange 

            
	
              Related
                Exchange:

            	
              All
                Exchanges 

            
	
              Transaction
                Fee:

            	
              Party
                B shall pay to Party A a Transaction Fee, as specified in Schedule
                A.
                

            
	
              Valuation:

            	 
	
              Trading
                Period:

            	
              The
                period of consecutive Scheduled Trading Days from and including the
                first
                Scheduled Trading Day following the Hedge Period End Date to and
                including
                the Maximum Maturity Date, as specified in Schedule A; provided
                that,
                Party A may designate any 

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	Scheduled
              Trading
              Day on or after the Minimum Maturity Date, as specified in Schedule
              A, as
              the last Scheduled Trading Day of the Trading Period. Party A shall
              notify
              Party B of any designation made pursuant to this provision prior to
              9:00
              A.M. (New York time) on the Scheduled Trading Day immediately following
              such designated day.
	
              Market
                Disruption Event:

            	
              The
                first sentence of Section 6.3(a) of the Equity Definitions is hereby
                amended by replacing clause (ii) and clause (iii) in their entirety
                with
                “(ii) an Exchange Disruption, which in either case the Calculation
                Agent
                determines is material, (iii) an Early Closure, (iv) a Regulatory
                Disruption or (v) a Liquidity Event.”

            
	
              Regulatory
                Disruption:

            	
              A
                “Regulatory Disruption” shall occur if Party A determines in its
                reasonable discretion that it is appropriate in light of legal, regulatory
                or self-regulatory requirements or related policies or procedures
                for
                Party A to refrain from all or any part of the market activity in
                which it
                would otherwise engage in connection with the
                Transaction.

            
	
              Liquidity
                Event:

            	
              A
                “Liquidity Event” shall occur if on any day the trading volume or
                liquidity of trading in the Shares is materially reduced from levels
                prevailing on the Trade Date and the Calculation Agent determines
                in its
                commercially reasonable discretion that as a result it would be
                appropriate to treat such day as a Disrupted Day or a partially Disrupted
                Day.

            
	
              Consequence
                of Disrupted Days:

            	
              Notwithstanding
                anything to the contrary in the Equity Definitions, to the extent
                that a
                Disrupted Day occurs during the Initial Hedge Period or the Trading
                Period,
                the
                Calculation Agent may
                postpone the Maximum Maturity Date
                and
                the Minimum Maturity Date. If any Disrupted Day occurs during the
                Initial
                Hedge Period or the Trading Period, the Calculation Agent shall determine
                whether (i) such Disrupted Day is a Disrupted Day in whole, in which
                case
                the 10b-18 VWAP for such Disrupted Day shall not be included for
                purposes
                of determining the Hedging Price, if such Disrupted Date occurs during
                the
                Initial Hedge Period, or the Forward Price, if such Disrupted Date
                occurs
                during the Trading Period, or
                (ii) such Disrupted Day is a Disrupted Day only in part, in which
                case the
                10b-18 VWAP for such Disrupted Day shall be determined by the Calculation
                Agent based on Rule 10b-18 eligible transactions in the Shares on
                such
                Disrupted Day effected before the relevant Market Disruption Event
                (if
                any) occurred and/or after the relevant Market Disruption Event (if
                any)
                ended, and the Hedging Price, if such Disrupted Date occurs
                during

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	 the Initial
              Hedge
              Period, or the Forward Price, if such Disrupted Date occurs during
              the
              Trading Period, shall be determined by the Calculation Agent using
              an
              appropriately weighted average of the 10b-18 VWAPs for all Scheduled
              Trading Days in the Initial Hedge Period or the Trading Period, as
              the
              case may be, instead of an arithmetic average.
	
              Valuation
                Time:

            	
              The
                close of trading on the Exchange, without regard to extended trading
                hours.

            
	
              Valuation
                Date:

            	
              The
                last Scheduled Trading Day during the Trading Period. 

            
	
              Settlement
                Terms:

            	 
	
              Settlement
                Method Election:

            	
              Not
                Applicable

            
	
              Physical
                Settlement:

            	
              Applicable

            
	
              Settlement
                Currency:

            	
              USD

            
	
              Forward
                Price:

            	
              The
                amount equal to (i) the arithmetic average of the 10b-18 VWAPs for
                all
                Scheduled Trading Days in the Trading Period minus
                (ii) the Discount, as specified in Schedule A.

            
	
              10b-18
                VWAP:

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

            
	
              Number
                of Shares to be Delivered:

            	
              The
                number of Shares equal to the Share Amount minus
                the
                number of Minimum Shares.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              Share
                Amount:

            	
              The
                sum of (i) the quotient of the product of 0.50 multiplied
                by the
                Prepayment Amount divided
                by
                the Forward Price (provided
                that
                if such quotient is (A) greater than the Maximum Shares A, such quotient
                shall be deemed to be equal to the Maximum Shares A, and (B) less
                than the
                Minimum Shares A, such quotient shall be deemed to be equal to the
                Minimum
                Shares A) plus
                (ii)
                the quotient of the product of 0.50 multiplied
                by
                the
                Prepayment Amount divided
                by
                the Forward Price (provided
                that
                if such quotient is (A) greater than the Maximum Shares B, such quotient
                shall be deemed to be equal to the Maximum Shares B, and (B) less
                than the
                Minimum Shares B, such quotient shall be deemed to be equal to the
                Minimum
                Shares B).

            
	
              Settlement
                Date:

            	
              Three
                Exchange Business Days following the Valuation Date.

            
	
              Initial
                Shares:

            	
              As
                specified in Schedule A.

            
	
              Initial
                Share Delivery:

            	
              Party
                A shall deliver a number of Shares equal to the Initial Shares to
                Party B
                on the Initial Share Delivery Date in accordance with Section 9.4
                of the
                Equity Definitions, with the Initial Share Delivery Date being deemed
                to
                be a “Settlement Date” for purpose of such Section 9.4.

            
	
              Initial
                Share Delivery Date:

            	
              One
                Exchange Business Day following the Trade Date

            
	
              Minimum
                Shares A:

            	
              As
                specified in Schedule A.

            
	
              Minimum
                Shares B:

            	
              As
                specified in Schedule A.

            
	
              Minimum
                Shares:

            	
              As
                specified in Schedule A.

            
	
              Minimum
                Share Delivery:

            	
              Party
                A shall deliver a number of Shares equal to (i) the Minimum Shares
                minus
                (ii) the number of Initial Shares on the Minimum Share Delivery Date
                in
                accordance with Section 9.4 of the Equity Definitions, with the Minimum
                Share Delivery Date being deemed to be a “Settlement Date” for purpose of
                such Section 9.4. 

            
	
              Minimum
                Share Delivery Date:

            	
              Three
                Scheduled Trading Days following the Hedge Period End
                Date

            
	
              Maximum
                Shares A:

            	
              As
                specified in Schedule A.

            
	
              Maximum
                Shares B:

            	
              As
                specified in Schedule A.

            
	
              Maximum
                Shares:

            	
              As
                specified in Schedule A.

            

    

     

    
      	
              Adjustment
                Payment:

            	
              On
                the Prepayment Date Party B shall pay to Party A as a price adjustment
                an
                amount equal to the Adjustment Payment, as specified in Schedule
                A.

            
	
              Share
                Adjustments:

            	 

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              Method
                of Adjustment:

            	
              Calculation
                Agent Adjustment; provided
                clause (iii) of Section 11.2(e) of the Equity Definitions shall be
                deleted. For the avoidance of doubt, the Calculation Agent shall
                not make
                any adjustments to account for changes in cost of funding, expected
                dividends or stock loan rate.

            
	
              Extraordinary
                Events:

            	 
	
              Announcement
                Date:

            	
              The
                definition of “Announcement Date” in Section 12.1 of the Equity
                Definitions will be amended by replacing the words “voting shares” in the
                fifth line thereof with the word “Shares”.

            
	
              Consequences
                of Merger Events:

            	 
	
              Share-for-Share:

            	
              Modified
                Calculation Agent Adjustment 

            
	
              Share-for-Other:

            	
              Cancellation
                and Payment 

            
	
              Share-for-Combined:

            	
              Modified
                Calculation Agent Adjustment

            
	
              Tender
                Offer:

            	
              Applicable

            
	 	
              The
                definition of “Tender Offer” in Section 12.1 of the Equity Definitions
                will be amended by replacing the phrase “greater than 10% and less than
                100% of the outstanding voting shares of the Issuer” in the third and
                fourth line thereof with “(a) greater than 10% and less than 100% of the
                outstanding Shares of the Issuer in the event that such Tender Offer
                is
                being made by the Issuer or any subsidiary thereof or (b) greater
                than 15%
                and less than 100% of the outstanding Shares of the Issuer in the
                event
                that such Tender Offer is being made by any entity or person other
                than
                the Issuer or any subsidiary thereof”.

               

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

            
	
              Consequences
                of Tender Offers:

            	 
	
              Share-for-Share:

            	
              Modified
                Calculation Agent Adjustment

            
	
              Share-for-Other:

            	
              Modified
                Calculation Agent Adjustment

            
	
              Share-for-Combined:

            	
              Modified
                Calculation Agent Adjustment

            
	
              New
                Shares:

            	
              The
                definition of “New Shares” in Section 12.1 of the Equity Definitions shall
                be amended by deleting subsection (i) in its entirety and replacing
                it
                with the following: “(i) publicly quoted, traded or listed on the New York
                Stock Exchange, the American Stock Exchange, the NASDAQ Global Select
                Market or the NASDAQ Global Market (or their
                respective

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	 successors)”.
	
              Modified
                Calculation Agent Adjustment:

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

            
	
              Announcement
                Event:

            	
              If
                an Announcement Event occurs, the Calculation Agent will
                determine the
                economic effect of the Announcement Date on the theoretical value
                of the
                Transaction (including without limitation any change in volatility
                or
                liquidity relevant to the Shares or to the Transaction) from the
                Announcement Date to the Valuation Date. If such economic effect
                is
                material, the Calculation Agent will adjust the terms of the Transaction
                to reflect such economic effect. “Announcement
                Event”
                shall mean the occurrence of the Announcement Date of a Merger Event
                or
                Tender Offer.

            
	
              Composition
                of Combined Consideration:

            	
              Not
                Applicable

            
	
              Nationalization,
                Insolvency or Delisting:

            	
              Cancellation
                and Payment 

            
	
              Cancellation
                Amount:

            	
              Section
                12.8(d) of the Equity Definitions shall be amended by deleting the
                second
                sentence thereof and Section 12.8(e) of the Equity Definitions shall
                be
                deleted.

            
	
              Delisting:

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

            
	
              Additional
                Disruption Events:

            	 
	
              Change
                in Law:

            	
              Applicable;
                provided
                that Section 12.9(a)(ii) of the Equity Definitions is hereby amended
                by
                (i) replacing the phrase “the interpretation” in the third line
                thereof

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	with the
              phrase “or
              public announcement of the formal or informal interpretation”, (ii)
              immediately following the word “Transaction” in clause (X) thereof, adding
              the phrase “in the manner contemplated by the Hedging Party on the Trade
              Date” and (iii) deleting clause (Y) thereof.
	
              Insolvency
                Filing:

            	
              Not
                Applicable

            
	
              Hedging
                Disruption:

            	
              Not
                Applicable

            
	
              Increased
                Cost of Hedging:

            	
              Not
                Applicable

            
	
              Loss
                of Stock Borrow:

            	
              Applicable;
                provided
                that if Party A gives notice that it elects to terminate the Transaction
                pursuant to 12.9(b)(4) of the Equity Definitions, Party A in calculating
                the Cancellation Amount payable in connection with such Loss of Stock
                Borrow shall not consider the Stock Loan Rate or any changes thereto
                whether prior to or post such Loss of Stock Borrow. 

               

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

            
	
              Maximum
                Stock Loan Rate:

            	
              50
                basis points

            
	
              Increased
                Cost of Stock Borrow:

            	
              Not
                Applicable

            
	
              Hedging
                Party:

            	
              Party
                A shall be the Hedging Party in connection with all Extraordinary
                Events

            
	
              Determining
                Party:

            	
              Party
                A shall be the Determining Party in connection with all Extraordinary
                Events

            
	
              Acknowledgments:

            	 
	
              Non-Reliance:

            	
              Applicable

            
	
              Agreements
                and Acknowledgments 
Regarding Hedging Activities:

            	
              Applicable

            
	
              Additional
                Acknowledgments:

            	
              Applicable

            
	
              Additional
                Representations, Warranties 

              and
                Agreements of Party B:

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

               

              (a)
                (i) It understands that the Transaction is subject to complex risks
                which
                may arise without warning, may at times be volatile, and that losses
                may
                occur quickly and in unanticipated magnitude, and (ii) it has concluded
                that the Transaction is suitable in light of its own investment
                objectives, financial capabilities and expertise.

               

              (b)
                It is an “eligible contract participant” as the term
                is

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	 	defined
              in Section
              1a(12) of the Commodity Exchange Act, as amended.
               

              (c)
                Neither Party A nor any of its affiliates has advised Party B with
                respect
                to any legal, regulatory, tax, accounting or economic consequences
                arising
                from the Transaction, and neither Party A nor any of its affiliates
                is
                acting as advisor for Party B in connection with the
                Transaction.

               

              (d)
                Party B is not entering into the Transaction on the basis of any
                material
                non-public information concerning the business, operations or prospects
                of
                the Issuer. 

               

              “Material”
                information for these purposes is any information to which an investor
                would reasonably attach importance in reaching a decision to buy,
                sell or
                hold any securities of Party B.

               

              (e)
                Each of its required filings under all applicable securities laws
                have
                been filed and on
                the Trade Date, (A) none of Party B and its officers and directors
                is
                aware of any material nonpublic information regarding Party B or
                the
                Shares and (B) all reports and other documents filed by Party B 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
                material fact or omit to state any 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.

               

              (f)
                Party B is not entering into the Transaction to create actual or
                apparent
                trading activity in the Shares (or any security convertible into
                or
                exchangeable for Shares), to manipulate the price of the Shares (or
                any
                security convertible into or exchangeable for Shares) or to facilitate
                a
                distribution of Shares (or any security convertible into or exchangeable
                for Shares).

               

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

            
	
              Additional
                Termination Events:

            	
              Notwithstanding
                any other provision hereof, an “Additional Termination Event” shall occur
                and Party B shall be the sole Affected Party pursuant to
                such

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	Additional
              Termination Event if on any day occurring after the Trade Date and
              on or
              prior to the last Scheduled Trading Day in the Trading Period an
              ex-dividend date occurs with respect to the Shares for (i) an
              extraordinary cash dividend, (ii) a regular quarterly dividend (A)
              in an
              amount greater than USD 0.06 for 2007 per Share per quarter (any quarterly
              dividend in such amount for 2007, a “Regular
              Quarterly Dividend”)
              or (B) with an ex-dividend date occurring prior to July 18,
              2007 for the quarter ending September 30, 2007, or occurring prior to
              October 17, 2007 for the quarter ending December 31, 2007, as the
              case may be, (iii) a distribution, issue or dividend of securities
              or
              share capital of another issuer acquired or owned (directly or indirectly)
              by Party B as a result of a spin-off or other similar transaction or
              (iv)
              a distribution, issue or dividend of any other type of securities (other
              than Shares, which may constitute a Potential Adjustment Event), rights
              or
              warrants or other assets, in any case for payment (cash or other
              consideration) at less than the prevailing market price as determined
              by
              the Calculation Agent; provided that in calculating the amounts payable
              in
              connection with such Additional Termination Event, any such distribution,
              issue or dividend shall not be considered a loss recoverable by Party
              A.
              Party B agrees to furnish Party A with written notice at least 30 days
              prior to the ex-dividend date corresponding to each of the foregoing
              distributions, issues and dividends except those described in clause
              (ii)
              above.
	
              Regulatory
                Provisions:

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

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

            
	
              Solvency:

            	
              As
                of the Trade Date and the Minimum Share Delivery Date, Party
                B represents, warrants and agrees that Party
                B is not “insolvent” (as such term is defined under Section 101(32) of the
                U.S. Bankruptcy Code (Title 11 of the United States Code)) and Party
                B
                would be able to purchase the Maximum Shares in compliance with the
                laws
                of the jurisdiction of Party B’s incorporation.

            
	
              Company
                Purchases:

            	
              Without
                the prior written consent of Party A and except for purchases which
                are
                not solicited by or behalf of Party B, its affiliates or affiliated
                purchasers

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	(each as
              defined in
              Rule 10b-18), Party B shall not purchase, and shall not cause its
              affiliates or affiliated purchasers to directly or indirectly purchase,
              any Shares (or any security convertible into or exchangeable for Shares)
              during the Initial Hedge Period or the Trading Period.
	
              Regulation
                M:

            	
              Party
                B represents that as of the Trade Date it has no current intention
                of
                engaging in a distribution, as such term is used in Regulation M
                under the
                Exchange Act (“Regulation
                M”),
                during the Initial Hedge Period or the Trading Period.

            
	 	On
              the Trade Date, and, without prior notice to Party A, on each day during
              the Initial Hedge Period and the Trading Period, the Shares shall not
              be
              subject to a “restricted period,” as such term is defined in Regulation
              M.
	
              No
                Collateral:

            	
              Notwithstanding
                any provision of this Confirmation, the Agreement or the Definitions,
                or
                any other agreement between the parties, to the contrary, the obligations
                of Party B hereunder are not secured by any collateral.

            
	
              Set-Off
                and Netting:

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

            
	
              Rule
                10b-18:

            	
              During
                the Initial Hedge Period, Party A agrees to use best efforts to make
                all
                purchases of Shares in connection with the Transaction in a manner
                that
                would satisfy the requirements set forth in clauses (b)(2), (b)(3),
                (b)(4)
                and (c) of Rule10b-18 under the Exchange Act (“Rule
                10b-18”),
                as if such purchases were made by Party B.

            
	 	Party
              B shall, at least one day prior to the first day of the Initial Hedge
              Period, notify Party A in writing of the total number of Shares purchased
              in Rule 10b-18 purchases of blocks pursuant to the once-a-week block
              exception set forth in clause (b)(4) of Rule 10b-18 by Party B or any
              of
              its affiliates during each of the four 

    

     

    
      
        
        

      

      
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      	 	calendar
              weeks
              preceding such day and during the calendar week in which such day occurs
              (“Rule
              10b-18 purchase”
              and “blocks”
              each as defined in Rule 10b-18).
	
              Rule
                10b5-1:

            	
              It
                is the intent of the parties that the Transaction comply with the
                requirements of Rule 10b5-1(c)(1)(i)(B) of the Exchange Act (“Rule
                10b5-1”),
                and the parties agree that this Confirmation shall be interpreted
                to
                comply with the requirements of Rule 10b5-1(c). Without limiting
                the
                generality of the preceding sentence, Party B acknowledges and agrees
                that
                (A) Party B does not have, and shall not attempt to exercise, any
                influence over how, when or whether Party A effects any purchases
                in
                connection with the Transaction, (B) during the Initial Hedge Period
                and
                the Trading Period neither Party B nor its officers or employees
                shall,
                directly or indirectly, communicate any information regarding Party
                B or
                the Shares to any employee of Party A or its affiliates who is identified
                to Party B in writing by Party A as being directly involved with
                the
                hedging of and trading with respect to the Transaction, (C) Party
                B is
                entering into the Transaction in good faith and not as part of a
                plan or
                scheme to evade compliance with federal securities laws including,
                without
                limitation, Rule 10b-5 and (D) Party B will not alter or deviate
                from this
                Confirmation or enter into or alter a corresponding hedging transaction
                with respect to the Shares. Party B also acknowledges and agrees
                that any
                amendment, modification, waiver or termination of this Confirmation
                must
                be effected in accordance with the requirements for the amendment
                or
                termination of a “plan” as defined in Rule 10b5-1(c). Without limiting the
                generality of the foregoing, any such amendment, modification, waiver
                or
                termination shall be made in good faith and not as part of a plan
                or
                scheme to evade the prohibitions of Rule 10b-5.

            
	
              Certain
                Payments and Deliveries: 

            	
              Notwithstanding
                anything to the contrary herein, or in the Equity Definitions, if
                at any
                time (i) an Early Termination Date occurs and Party A would be required
                to
                make a payment pursuant to Section 6 of the Agreement, (ii) an
                Extraordinary Event occurs and Party A would be required to make
                a payment
                pursuant to Article 12 of the Equity Definitions or
                (iii)
                Party A is required to make a payment pursuant to any other provision
                hereof, of the Agreement or of the Definitions, then Party B shall
                have
                the right, in its sole and absolute discretion, to elect that, in
                lieu of
                such payment, Party A shall deliver to Party B, at the time such
                payment
                would have been due

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	 	and in
              the manner
              provided under “Physical Settlement” in the Equity Definitions, a number
              of Shares equal to the quotient obtained by dividing (A) the amount
              that
              would have been so payable by (B) the fair market value per Share of
              the
              Shares so delivered at the time of such delivery, as determined by
              the
              Calculation Agent in a commercially reasonable manner.
	
              Payments
                on Early Termination: 

            	
              Party
                A and Party B agree that for the Transaction, the definition of Close-out
                Amount in the Agreement shall be amended by deleting (a) the second
                sentence of the paragraph immediately following clause (iii) thereof
                and
                (b) the second paragraph following such clause (iii).

            
	
              Agreement
                Regarding Calculations:

            	
              Notwithstanding
                any other provision of this Confirmation, the Definitions or the
                Agreement
                to the contrary, in calculating any adjustment pursuant to Article
                11 of
                the Equity Definitions or any amount payable pursuant to Article
                12 of the
                Equity Definitions or Section 6 of the Agreement, the
                Calculation Agent shall not take into account (i) changes to costs
                of
                funding, stock loan rates or any dividends since the Trade Date or
                (ii)
                losses or costs incurred in connection with terminating, liquidating
                or
                re-establishing any hedge related to the Transaction (or any gain
                resulting from any of them).

            
	
              Special
                Provisions for Party B Payments:

            	
              Party
                A and Party B agree that, notwithstanding anything to the contrary
                herein
                or in the Agreement, in the event that (i) an Early Termination Date
                (whether as a result of an Event of Default or Termination Event)
                occurs
                or is designated with respect to any Transaction and, as a result,
                Party B
                owes to Party A an amount calculated under Section 6(e) of the Agreement
                or (ii) an Extraordinary Event occurs that results in the termination
                or
                cancellation of any Transaction pursuant to Article 12 of the Equity
                Definitions and, as a result, Party B owes to Party A a Cancellation
                Amount or any other amount in respect to the Transaction, such amount
                shall be deemed to be zero. For the avoidance of doubt, the Party
                B shall
                not be required to make any additional cash payments (other than
                the
                Prepayment Amount) or deliver or return any Shares pursuant to the
                terms
                of the Transaction (including, without limitation, any Shares delivered
                on
                the Initial Share Delivery Date or the Minimum Share Delivery
                Date).

            
	
              Transfer:

            	
              Notwithstanding
                Section 7 of the Agreement, Party A may assign its rights and obligations
                under the Transaction, in whole and not in part, to any
                Affiliate

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	 	of Lehman
              Brothers
              Holdings Inc. (“Holdings”)
              effective upon delivery to Party B of the full unconditional guarantee
              by
              Holdings, in favor of Party B, of the obligations of such Affiliate;
              provided however,
              that Party A may not assign its rights and obligations under the
              Transaction if such assignment would result in an (i) Party B being
              required to pay to the assignee an amount in respect of an Indemnifiable
              Tax under Section 2(d)(i)(4) greater than the amount in respect of
              which
              Party B would have been required to pay to Party A in the absence of
              such
              assignment or (ii) Party B receiving a payment from which an amount
              has
              been withheld or deducted, on account of a Tax under Section 2(d)(i)
              in
              excess of that which Party A would have been required to so withhold
              or
              deduct in the absence of such assignment, unless the assignee would
              be
              required to make additional payments pursuant to Section 2(d)(i)(4)
              corresponding to such withholding or deduction.
	
              Binding
                Contract:

            	
              This
                Confirmation, as supplemented by the Confirmation Pricing Supplement,
                is a
                “qualified financial contract”, as such term is defined in Section
                5-701(b)(2) of the General Obligations Law of New York (the “General
                Obligations Law”);
                (ii) the Confirmation
                Pricing Supplement
                constitutes a “confirmation in writing sufficient to indicate that a
                contract has been made between the parties” hereto, as set forth in
                Section 5-701(b)(3)(b) of the General Obligations Law; and (iii)
                this
                Confirmation constitutes a prior “written contract” as set forth in
                Section 5-701(b)(1)(b) of the General Obligations Law, and each party
                hereto intends and agrees to be bound by this Confirmation, as
                supplemented by the Confirmation Pricing Supplement. Party A and
                Party B
                further agree and acknowledge that this Confirmation, as supplemented
                by
                the Confirmation Pricing Supplement, constitutes a contract “for the sale
                or purchase of a security”, as set forth in Section 8-113 of the Uniform
                Commercial Code of New York.

            
	
              Governing
                Law:

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

            
	
              Termination
                Currency:

            	
              USD

            

    

    

    
      	
              Waiver
                of Trial By Jury:

            	
              Insofar
                as is permitted by law, each party irrevocably waives any and all
                rights
                to trial by jury in any legal proceeding in connection with the
                Transaction, and acknowledges that this waiver is a material inducement
                to
                the other party’s entering into the Transaction

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	 	hereunder.
	
              Calculation
                Agent:

            	
              Lehman
                Brothers Inc.

            
	 	
              All
                determinations made by the Calculation Agent shall be made in good
                faith
                and in a commercially reasonable manner. Following any calculation
                by the
                Calculation Agent hereunder, upon a written request by Party B, the
                Calculation Agent will provide to Party B by e-mail to the e-mail
                address
                provided by Party B in such a prior written request a report displaying
                in
                reasonable detail the basis for such
                calculation.

            

    

    

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

     

     

    

     

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

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

     

     

    
      	
              Yours
                sincerely,

            	
              Accepted
                and agreed to:

            
	 	 
	
              Lehman
                Brothers OTC Derivatives Inc.

            	
              CVS
                Caremark Corporation

            
	
               

               

               

              By:
                /s/ Anatoly Kozlov    

              Name:
                Anatoly Kozlov

              Title:
                Authorized Signatory

            	
               

               

               

              By:
                /s/ Carol A. DeNale       
                

              Name:
                Carol A. DeNale

              Title:
                Vice President and Treasurer

            
	 	 

    

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

     

    

    

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    CONFIRMATION
      PRICING SUPPLEMENT

    

    
      
        	Global Deal Id: 	[    ]
	Effort Id:	[   
]

      

    

    

    This
      Confirmation Pricing Supplement is the Confirmation Pricing Supplement referred
      to in the Confirmation dated as of May 13, 2007 between Lehman Brothers OTC
      Derivatives Inc. and CVS Caremark Corporation.

    

    For
      all
      purposes under the Confirmation, the following terms of the Confirmation shall
      be as specified below:

    

    
      	1.	
              Hedging
                Price:   USD
                [ ]

            

    

    

    
      	2.	
              Maximum
                Shares A:

            

    

    

    
      	3.	
              Maximum
                Shares B:

            

    

    

    
      	4.	
              Minimum
                Shares A:

            

    

    

    
      	5.	
              Minimum
                Shares B:

            

    

    

    
      	6.	
              First
                day of Trading Period:  [__________
                __], 2007

            

    

    
 

    
      	
              Yours
                sincerely,

            	
              Accepted
                and agreed to:

            
	 	 
	
              Lehman
                Brothers OTC Derivatives Inc.

            	
              CVS
                Caremark Corporation

            
	
               

               

               

              By:
                ________________________

              Name:

              Title:

            	
               

               

               

              By:
                ________________________

              Name:

              Title:

            

    

    

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

     

    

     

     

     17

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