Document:

Exhibit 10.1

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 AG New York

  
	
   

  	
   

  	
   60 Wall
  Street

  
	
   

  	
   

  	
   New York, NY
  10005

  
	
   

  	
   

  	
   Telephone:
  212-250-2500

  

 

	
  DATE:

  	
   

  	
  June 21, 2007

  
	
   

  	
   

  	
   

  
	
  TO:

  	
   

  	
  NovaMed, Inc.

  
	
  ATTENTION:

  	
   

  	
  The Chief Executive
  Officer and the Chief Financial Officer

  
	
  TELEPHONE:

  	
   

  	
  (312) 664-4100

  
	
  FACSIMILE:

  	
   

  	
  (312) 664-4250

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
  Deutsche Bank AG London

  
	
  TELEPHONE:

  	
   

  	
  44 20 7545 8000

  
	
  FACSIMILE:

  	
   

  	
  44 11 3336 2009

  
	
   

  	
   

  	
   

  
	
  SUBJECT:

  	
   

  	
  Equity Derivatives Confirmation

  
	
   

  	
   

  	
   

  
	
  REFERENCE NUMBER(S):

  	
   

  	
  187987

  

 

The purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and conditions of the
transaction entered into between Deutsche
Bank AG acting through its London branch (“Deutsche”) and NovaMed, Inc. (“Counterparty”) on the Trade Date specified below (the “Transaction”).  This
Confirmation constitutes a “Confirmation” as referred to in the ISDA Master
Agreement specified below.  This
Confirmation constitutes the entire agreement and understanding of the parties
with respect to the subject matter and terms of the Transaction and supersedes
all prior or contemporaneous written and oral communications with respect
thereto.

DEUTSCHE
BANK AG IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. 
DEUTSCHE BANK AG NEW YORK (“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).

The definitions contained in the 2002 ISDA Equity Derivatives Definitions
(the “Equity Definitions”), as published by
the International Swaps and Derivatives Association, Inc., are incorporated
into this Confirmation.  In the event of
any inconsistency between the Equity Definitions and the terms of this
Confirmation, the terms of this
Confirmation shall 

	
  Chairman of the Supervisory Board: Clemens
  Börsig Board of Managing Directors: Hermann-Josef Lamberti, Josef Ackermann,
  Tessen von Heydebreck, Anthony DiIorio, Hugo Banziger

  	
   

  	
  Deutsche Bank AG is regulated by the FSA for the
  conduct of designated investment business in the UK, is a member of the
  London Stock Exchange and is a limited liability company incorporated in the
  Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am
  Main; Branch Registration No. in England and Wales BR000005, Registered
  address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.

  

 

govern.  For the purposes of
the Equity Definitions, each reference herein to a Note Hedging Unit shall be
deemed to be a reference to a Call or an Option, as context requires.

This Confirmation
evidences a complete and binding agreement between Deutsche and Counterparty 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 (the “Agreement”)
in the form of the ISDA 2002 Master Agreement (the “ISDA Form”)
as if Deutsche and Counterparty had executed an agreement in such form (without
any Schedule but with the elections set forth in this Confirmation).  For the avoidance of doubt, the Transaction
shall be the only transaction under the Agreement.

2.              The
Transaction shall be considered a Share Option Transaction for purposes of the
Equity Definitions, and shall have the following terms:

	
  General:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  June 21, 2007.

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  The closing date for the initial issuance of the
  Convertible Notes.

  
	
   

  	
   

  	
   

  
	
  Transaction Style:

  	
   

  	
  Modified American, as described below under
  “Procedure for Exercise”.

  
	
   

  	
   

  	
   

  
	
  Transaction Type:

  	
   

  	
  Note Hedging Units.

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Deutsche.

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty.

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  The common stock, par value USD0.01 per share, of
  Counterparty.

  
	
   

  	
   

  	
   

  
	
  Convertible Notes:

  	
   

  	
  1.0% Convertible Senior Subordinated Notes of
  Counterparty due June 15, 2012, offered pursuant to a Prospectus Supplement
  to be dated as of June 21, 2007 (the “Prospectus
  Supplement”) and issued pursuant to the indenture to be dated on
  or about June 27, 2007, by and between Counterparty and LaSalle Bank National
  Association, as trustee (as such indenture may be amended or supplemented
  from time to time, but only if such amendment or supplement is consented by
  Deutsche in writing, the “Indenture”). Counterparty shall provide Deutsche
  with a copy of the executed Indenture on the Effective Date. In the event of
  any inconsistency between the terms defined in the Indenture or defined in
  the Prospectus Supplement and this Confirmation, this Confirmation shall
  govern. For the avoidance of doubt, references herein to provisions of the
  Indenture are based on the description of the Convertible Notes set forth in
  the Prospectus Supplement. If any relevant provisions of the Indenture differ
  in any material respect from those described in the Prospectus Supplement,
  the parties will amend this Confirmation in good faith to preserve the
  economic intent of the parties.

  
	
   

  	
   

  	
   

  
	
  Number of Note Hedging Units:

  	
   

  	
  75,000

  
	
   

  	
   

  	
   

  
	
  Note Hedging Unit Entitlement:

  	
   

  	
  156.9612. Notwithstanding anything to the contrary
  herein or in the 

  

 

 2
 

 

	
  

  	
   

  	
  Agreement (including without limitation the
  provisions of Calculation Agent Adjustment), in no event shall the Note
  Hedging Unit Entitlement at any time be greater than the Conversion Rate (as
  such term is defined in the Indenture as described in the Prospectus
  Supplement under “Description of Notes ― Conversion of Notes ―
  Payment Upon Conversion”) at such time.

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  USD1,000 divided by
  the Note Hedging Unit Entitlement.

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  As provided in Annex A.

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  The Effective Date.

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Related Exchanges:

  	
   

  	
  All Exchanges.

  
	
   

  	
   

  	
   

  
	
  Calculation Agent:

  	
   

  	
  Deutsche.

  
	
   

  	
   

  	
   

  
	
  Procedure for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Potential Exercise Dates:

  	
   

  	
  Each Conversion Date.

  
	
   

  	
   

  	
   

  
	
  Conversion Date:

  	
   

  	
  Each “Conversion Date” under the Indenture, as
  described in the Prospectus Supplement under “Description of Notes ―
  Conversion of Notes ― Payment Upon Conversion”.

  
	
   

  	
   

  	
   

  
	
  Conversion Period:

  	
   

  	
  Each “Conversion Period” under the Indenture, as
  described in the Prospectus Supplement under “Description of Notes ―
  Conversion of Notes ― Payment Upon Conversion”.

  
	
   

  	
   

  	
   

  
	
  Required Exercise on Conversion Dates:

  	
   

  	
  On each Conversion Date, a number of Note Hedging
  Units equal to the number of Convertible Notes in denominations of USD1,000
  principal amount submitted for conversion in respect of such Conversion Date
  in accordance with the terms of the Indenture shall be exercised
  automatically, subject to “Notice of Exercise” below.

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  June 15, 2012

  
	
   

  	
   

  	
   

  
	
  Multiple Exercise:

  	
   

  	
  Applicable, as provided under “Required Exercise on
  Conversion Dates”.

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  As provided under “Required Exercise on Conversion
  Dates”.

  
	
   

  	
   

  	
   

  
	
  Notice of Exercise:

  	
   

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, in order to exercise any Note Hedging Units, Counterparty
  must notify Deutsche in writing prior to 5:00 PM, New York City time, on the
  day that is two Scheduled Trading Days prior to the first day of the
  Conversion Period, relating to the Convertible Notes converted on the
  Conversion Date relating to the relevant Exercise Date (the “Notice 

  

 

 3
 

 

	
  

  	
   

  	
  Deadline”) of (i)
  the number of Note Hedging Units being exercised on such Exercise Date, (ii)
  the scheduled settlement date under the Indenture for the Convertible Notes
  converted on the Conversion Date corresponding to such Exercise Date and
  (iii) the applicable “Cash Percentage” (as defined in the Indenture as
  described in the Prospectus Supplement under “Description of Notes ―
  Conversion of Notes ― Payment Upon Conversion”); provided, however, that, for the
  avoidance of doubt, with respect to Convertible Notes converted during the
  period beginning on, and including, the 55th “Scheduled Trading Day”, as
  defined in the Indenture as “any day on which NASDAQ or, if the Common Stock
  is not listed on NASDAQ, the principal other U.S. national or regional
  securities exchange on which the Common Stock is then listed is scheduled to
  be open for trading or, if the Common Stock is not so listed, any Business
  Day”, prior to the “Maturity Date”, as defined in the Indenture (as described
  in the Prospectus Supplement under “Description of Notes ― General”),
  for such Convertible Notes and ending on the “Scheduled Trading Day”, as so
  defined, immediately preceding the “Maturity Date”, as so defined, the Notice
  Deadline shall be the “Scheduled Trading Day”, as so defined, immediately
  preceding the “Maturity Date”, as so defined.

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  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 occurring on a Conversion Date, Deutsche
  shall deliver to Counterparty, on the related Settlement Date, the Settlement
  Amount.For the avoidance of doubt, to the extent Deutsche is obligated to
  deliver Shares hereunder, the provisions of Sections 9.8, 9.9, 9.10, 9.11 and
  9.12 of the Equity Definitions shall be applicable to any such delivery of
  Shares; and 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 Counterparty is the
  issuer of the Shares.

  
	
   

  	
   

  	
   

  
	
  Settlement Amount:

  	
   

  	
  A number of Shares and/or amount of cash in USD
  equal to the aggregate number of Shares and/or amount of cash in USD in lieu
  of such Shares, as the case may be, that Counterparty is obligated to deliver
  to the holder(s) of the Convertible Notes converted on such Conversion Date
  pursuant to the section of the Indenture containing the provision described
  in the Prospectus Supplement under “Description of Notes ― Conversion
  of Notes ― Payment Upon Conversion”) (the “Convertible Obligation”); provided
  that such obligation shall be determined excluding any Shares or cash that
  Counterparty is obligated to deliver to holder(s) of the Convertible Notes as
  a result of any adjustments to the Conversion Rate for the issuance of
  additional shares or cash as set forth in the section of the Indenture
  containing the provision described in the Prospectus Supplement under
  “Description of The Notes ― Adjustment to Shares Delivered Upon
  Conversion Upon a 

  

 

 4
 

 

	
  

  	
   

  	
  Qualifying Fundamental Change” (a “Fundamental
  Change Adjustment”) or any voluntary adjustment as described in the pursuant
  to section of the Indenture containing the provisions described in the third
  to last paragraph in the Prospectus Supplement under “Description of Notes
  ― Conversion of Notes ― Conversion Price Adjustments” (a
  “Voluntary Adjustment”); provided further
  that, if Counterparty is permitted or required to exercise discretion under
  the terms of the Indenture with respect to any determination, calculation or
  adjustment relevant to conversion of the Convertible Notes including, but not
  limited to, the volume-weighted average price of the Shares, Counterparty
  shall consult with Deutsche with respect thereto and the Calculation Agent
  shall make such determination, calculation or adjustment for purposes of the
  Transaction. For the avoidance of doubt, if the “Daily Conversion Value”, as
  defined in the Indenture (as described in the Prospectus Supplement under “Description
  of Notes ― Conversion of Notes ― Payment Upon Conversion”), for
  each of the 50 “trading days”, as defined in the Indenture (as described in
  the Prospectus Supplement under “Description of Notes ― Conversion of
  Notes ― Conversion Upon Satisfaction of Market Price Condition”),
  occurring in the relevant Conversion Period, is less than or equal to USD20,
  Deutsche will have no delivery obligation and Counterparty will not have any
  obligation, in either case, hereunder in respect of the related Exercise
  Date.

  
	
   

  	
   

  	
   

  
	
  Notice of Delivery Obligation:

  	
   

  	
  No later than the Scheduled Trading Day immediately
  following the last day of the Conversion Period, Counterparty shall give
  Deutsche notice of the final number of Shares and/or cash comprising the
  Convertible Obligation (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, as set forth
  above, in any way).

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  In respect of an Exercise Date occurring on a
  Conversion Date, the settlement date for the Shares to be delivered under the
  Convertible Notes under the terms of the Indenture; provided that the Settlement Date will
  not be prior to the later of (i) the date one Settlement Cycle following the
  final day of the Conversion Period, or (ii) the Exchange Business Day
  immediately following the date on which Counterparty gives notice to Deutsche
  of such Settlement Date prior to 5:00 PM, New York City time.

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD.

  
	
   

  	
   

  	
   

  
	
  Restricted Certificated Shares:

  	
   

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, Deutsche may, in whole or in part, deliver Shares in
  certificated form representing the Settlement Amount to Counterparty in lieu
  of delivery through the Clearance System.

  
	
   

  	
   

  	
   

  
	
  Share Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Potential Adjustment Events:

  	
   

  	
  Notwithstanding Section 11.2(e) of the Equity
  Definitions, a “Potential 

  

 

 5
 

 

	
  

  	
   

  	
  Adjustment Event” means any occurrence of any event
  or condition, as set forth in the sections of the Indenture containing the
  provisions described in the Prospectus Supplement under “Description of Notes
  ― Conversion of Notes ― Conversion Price Adjustment” that would
  result in an adjustment to the Conversion Rate of the Convertible Notes; provided that in no event shall there be any adjustment
  hereunder as a result of an adjustment to the Conversion Rate pursuant to a
  Fundamental Change Adjustment or a Voluntary Adjustment.

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation Agent Adjustment, which means that,
  notwithstanding Section 11.2(c) of the Equity Definitions, upon any
  adjustment to the Conversion Rate of the Convertible Notes pursuant to the
  Indenture (other than a Fundamental Change Adjustment or a Voluntary
  Adjustment), the Calculation Agent shall make a corresponding adjustment to
  any one or more of the Strike Price, Number of Note Hedging Units, the Note
  Hedging Unit Entitlement and any other variable relevant to the exercise,
  settlement, payment or other terms of the Transaction, as appropriate, to
  reflect such adjustment to the Conversion Rate of the Convertible Notes.

  
	
   

  	
   

  	
   

  
	
  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 the section of the Indenture containing the provisions described
  in the fifth to last paragraph in the Prospectus Supplement under
  “Description of Notes ― Conversion of Notes ― Conversion Price
  Adjustments” (i.e., the paragraph commencing with “In the event of: any
  reclassification . . .”).

  
	
   

  	
   

  	
   

  
	
  Notice of Merger Consideration:

  	
   

  	
  Upon the occurrence of a Merger Event that causes
  the Shares to be converted into or exchanged for more than a single type of
  consideration (determined based in part upon the form of election of the
  holders of Shares), Counterparty shall promptly (but in any event prior to
  the effective date of the Merger Event) notify the Calculation Agent of the
  weighted average of the kind and amounts of consideration received by the
  holders of Shares in any Merger Event who affirmatively make such an
  election.

  
	
   

  	
   

  	
   

  
	
  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 Strike
  Price, the Number of Note Hedging Units, the Note Hedging Unit Entitlement
  and any other variable relevant to the exercise, settlement, payment or other
  terms of the Transaction, as appropriate, to reflect any adjustment to the Conversion
  Rate of the Convertible Notes effected pursuant to the terms of the
  Indenture; provided  that such adjustment shall be made without regard to any
  Fundamental Change Adjustment or Voluntary Adjustment.

  

 

 6
 

 

	
  Nationalization, Insolvency and 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 be deemed to be the Exchange. For the
  avoidance of doubt, the occurrence of any event that is a Merger Event and
  would otherwise have been a Delisting will have the consequence specified for
  the relevant Merger Event.

  
	
   

  	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change in Law:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Increased Cost of Hedging:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Deutsche for all applicable Additional Disruption
  Events

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  Deutsche for all applicable Additional Disruption
  Events

  
	
   

  	
   

  	
   

  
	
  Acknowledgements:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and Acknowledgements

  	
   

  	
   

  
	
  Regarding Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional Acknowledgements:

  	
   

  	
  Applicable

  

 

Mutual
Representations: Each
of Deutsche and Counterparty represents and warrants to, and agrees with, the
other party that:

(i)                                     Tax Disclosure.  Notwithstanding anything to the
contrary herein, in the Equity Definitions or in the Agreement, and
notwithstanding any express or implied claims of exclusivity or proprietary
rights, the parties (and each of their employees, representatives or other agents)
are authorized to disclose to any and all persons, beginning immediately upon
commencement of their discussions and without limitation of any kind, the tax
treatment and tax structure of the Transaction, and all materials of any kind
(including opinions or other tax analyses) that are provided by either party to
the other relating to such tax treatment and tax structure.

(ii)                                  Commodity Exchange Act. 
It is an “eligible contract participant” within the meaning of Section
1a(12) of the U.S. Commodity Exchange Act, as amended (the “CEA”).  The
Transaction has been subject to individual negotiation by the parties.  The Transaction has not been executed or
traded on a “trading 

 7
 

facility”
as defined in Section 1a(33) of the CEA. 
It has entered into the Transaction with
the expectation and intent that the Transaction shall be performed to its
termination date.

(iii)                               Securities Act. 
It is a “qualified institutional buyer” as defined in Rule 144A under
the U.S. Securities Act of 1933, as amended (the “Securities
Act”), or an “accredited investor” as defined under the Securities
Act.

(iv)                              Investment Company Act. 
It is a “qualified purchaser” as defined under the U.S. Investment
Company Act of 1940, as amended.

(v)                                 ERISA.  The assets used in the Transaction (1) are
not assets of any “plan” (as such term is defined in Section 4975 of the U.S.
Internal Revenue Code (the “Code”)) subject
to Section 4975 of the Code or any “employee benefit plan” (as such term is
defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of
1974, as amended (“ERISA”))
subject to Title I of ERISA, and (2) do not constitute “plan assets” within the
meaning of Department of Labor Regulation 2510.3-101, 29 CFR Section
2510-3-101.

Counterparty
Representations: In addition to the representations and warranties in the
Agreement and those contained elsewhere herein, Counterparty represents,
warrants, acknowledges and covenants that:

(i)                                     Counterparty
is not as of the Trade Date, and shall not be after giving effect to the transactions
contemplated hereby, insolvent.

(ii)                                  Counterparty
shall immediately provide written notice to Deutsche upon obtaining knowledge
of the occurrence of any event that would constitute a Potential Adjustment
Event, a Merger Event or any other Extraordinary Event; provided,
however, that should Counterparty be in possession of material
non-public information regarding Counterparty, Counterparty shall not
communicate such information to Deutsche.

(iii)                               Counterparty has (and shall at all times during the Transaction
have) the capacity and authority to invest directly in the Shares underlying
the Transaction and has not entered into the Transaction with the intent to
avoid any regulatory filings.

(iv)                              Counterparty’s
financial condition is such that it has no need for liquidity with respect to
its investment in the Transaction and no need to dispose of any portion thereof
to satisfy any existing or contemplated undertaking or indebtedness.

(v)                                 Counterparty’s
investments in and liabilities in respect of the Transaction, which it
understands are not readily marketable, are not disproportionate to its net
worth, and Counterparty is able to bear any loss in connection with the
Transaction, including the loss of its entire investment in the Transaction.

(vi)                              Counterparty understands, agrees and acknowledges that Deutsche has no
obligation or intention to register the Transaction under the Securities Act,
any state securities law or other applicable federal securities law.

(vii)                           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 U.S. Investment
Company Act of 1940, as amended.

 8
 

(viii)                        Counterparty understands, agrees and acknowledges that no obligations
of Deutsche to it hereunder shall be entitled to the benefit of deposit
insurance and that such obligations shall not be guaranteed by any affiliate of
Deutsche or any governmental agency.

(ix)                                (A)
Counterparty is not relying on any communication (written or oral) of Deutsche
or any of its affiliates as investment advice or as a recommendation to enter
into the Transaction (it being understood that information and explanations
related to the terms and conditions of the Transaction shall not be considered
investment advice or a recommendation to enter into the Transaction) and (B) no
communication (written or oral) received from Deutsche or any of its affiliates
shall be deemed to be an assurance or guarantee as to the expected results of
the Transaction.

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

(xi)                                Counterparty
is not entering into the Transaction for the purpose of (i) creating actual or
apparent trading activity in the Shares (or any security convertible into or
exchangeable for the Shares) or (ii) raising or depressing or otherwise
manipulating the price of the Shares (or any security convertible into or
exchangeable for the Shares), in either case in violation of the U.S.
Securities Exchange Act of 1934, as amended (the “Exchange Act”).

(xii)                             Counterparty’s filings under the Securities Act, the Exchange Act, and
other applicable securities laws that are required to be filed have been filed
and, as of the respective dates thereof and as of the date of this
representation, there is no misstatement of material fact contained therein or
omission of a material fact required to be stated therein or necessary to make
the statements made therein, in the light of the circumstances under which they
were made, not misleading.

(xiii)                          Counterparty
has not violated, and shall not directly or indirectly violate, any applicable
law (including, without limitation, the Securities Act and the Exchange Act) in
connection with the Transaction.

(xiv)                         The
Transaction, and any repurchase of the Shares by Counterparty in connection
with the Transaction, has been approved by Counterparty’s board of directors
and any such repurchase has been, or shall when so required be, publicly
disclosed in its periodic filings under the Exchange Act and its financial
statements and notes thereto.

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

Miscellaneous:

Netting and Set-Off.  The parties hereto agree
that the Transaction shall not be subject to netting or set off with any other
transaction.

Qualified Financial
Contracts.  It is the intention of the parties that, in
respect of Counterparty, (a) the Transaction shall constitute a “qualified
financial contract” within the meaning of 12 U.S.C. Section 1821(e)(8)(D)(i)
and (b) a Non-defaulting Party’s rights under Sections 5 and 6 of the Agreement
constitute rights of the kind referred to in 12 U.S.C. Section 1821(e)(8)(A).

 9
 

Amendment. If the
underwriter party to the Underwriting Agreement exercises its right to purchase
additional Convertible Notes as set forth therein, then, at the request of
Counterparty, Deutsche and Counterparty will amend this Confirmation to provide
for such increase in Convertible Notes, subject to the repetition by
Counterparty of the representations and warranties made by Counterparty in this
Confirmation as of the date of such amendment and agreement on pricing terms
acceptable to Deutsche and Counterparty (such amendment to provide for the
payment by Counterparty to Deutsche of the additional premium related thereto).

Method of Delivery.  Whenever delivery of funds or other assets is
required hereunder by or to Counterparty, such delivery shall be effected
through Agent.  In addition, all notices,
demands and communications of any kind relating to the Transaction between
Deutsche and Counterparty shall be transmitted exclusively through Agent.

Staggered Settlement.  Deutsche may, by notice to Counterparty prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares deliverable on such Nominal Settlement
Date on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal
Settlement Date as follows: (i) in such notice, Deutsche 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 the
related Conversion Period or delivery times and how it will allocate the Shares
it is required to deliver under “Net Share Settlement” above among the
Staggered Settlement Dates or delivery times; and (ii) the aggregate number of
Shares that Deutsche will deliver to Counterparty hereunder on all such
Staggered Settlement Dates and delivery times will equal the number of Shares
that Deutsche would otherwise be required to deliver on such Nominal Settlement
Date.

Additional Termination Events.  The occurrence of (i) an “Event of Default” with respect to Counterparty
under the terms of the Convertible Notes as set forth in the section of the
Indenture containing the provisions described in the Prospectus Supplement
under “Description of the Notes — Events of Default” which has resulted in the
Convertible Notes becoming due and payable under the Indenture, (ii) an
Amendment Event or (iii) a Repayment 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 Deutsche shall be the party
entitled to designate an Early Termination Date pursuant to Section 6(a) of the
Agreement; provided that in the
case of a Repayment Event the Transaction shall be subject to termination only
in respect of the portion of the Transaction corresponding to the number of
Convertible Notes that cease to be outstanding in connection with or as a
result of such Repayment Event.

“Amendment Event”
means that Counterparty amends, modifies, supplements or obtains a waiver with
respect to any term of the Indenture or the Convertible Notes governing the
principal amount, coupon, maturity, repurchase obligation of Counterparty,
redemption right of Counterparty, any term relating to conversion of the
Convertible Notes (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 Notes to amend, in each case without the prior consent of Deutsche,
such consent not to be unreasonably withheld.

“Repayment Event”
means that (A) any Convertible Notes are repurchased (whether in connection
with or as a result of a change of control, howsoever defined, or for any other
reason) by Counterparty or any of its subsidiaries, (B) any Convertible Notes
are delivered to Counterparty or any of its subsidiaries in exchange for
delivery of any property or assets of Counterparty or any of its subsidiaries (howsoever
described), (C) any principal of any of the Convertible Notes is repaid prior
to the final maturity date of the Convertible Notes (whether following
acceleration of the Convertible Notes or otherwise), or (D) any Convertible
Notes are exchanged by or for the benefit of the holders thereof for any other
securities of Counterparty or any of its affiliates (or any other property, or
any combination thereof) pursuant to any exchange offer or similar transaction;
provided that, in the case of
clause (B) and clause (D), conversions of the Convertible Notes pursuant to the
terms of the Indenture as in effect on the date hereof shall not be Repayment
Events.

Disposition of Hedge Shares.  Counterparty hereby agrees that if, in the good faith reasonable judgment
of Deutsche, the Shares (the “Hedge Shares”) acquired by Deutsche for the purpose of
hedging its obligations pursuant to the Transaction cannot be sold in the
public market by Deutsche without registration under the Securities Act,
Counterparty shall, at its election: (i) in order to allow Deutsche to sell the
Hedge Shares in a 

 10
 

registered offering, make
available to Deutsche 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 Deutsche, 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 Deutsche, (D) provide other
customary opinions, certificates and closing documents customary in form for
registered offerings of equity securities and (E) afford Deutsche 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 Deutsche, 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 paragraph shall apply at the election of Counterparty;
(ii) in order to allow Deutsche to sell the Hedge Shares in a private
placement, 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 Deutsche, including
customary representations, covenants, blue sky and other governmental filings
and/or registrations, indemnities to Deutsche, due diligence rights (for
Deutsche or any designated buyer of the Hedge Shares from Deutsche), opinions
and certificates and such other documentation as is customary for private
placements agreements, all reasonably acceptable to Deutsche (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
Deutsche 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 Deutsche at the VWAP Price on such Exchange Business Days,
and in the amounts, requested by Deutsche. 
“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
NOVA Q <equity> AQR (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).  This paragraph shall survive
the termination, expiration or early unwind of the Transaction.

Status of Claims in Bankruptcy.  Deutsche acknowledges and agrees that this
Confirmation is not intended to convey to Deutsche rights with respect to the
Transaction that are senior to the claims of common stockholders in any U.S.
bankruptcy proceedings of Counterparty; provided
that nothing herein shall limit or shall be deemed to limit Deutsche’s right to
pursue remedies in the event of a breach by Counterparty of its obligations and
agreements with respect to the Transaction; provided, further, that
nothing herein shall limit or shall be deemed to limit Deutsche’s rights in respect
of any transactions other than the Transaction.

No Collateral.  Notwithstanding any provision of this
Confirmation, the Agreement, Equity Definitions, or any other agreement between
the parties to the contrary, the obligations of Counterparty under the
Transaction are not secured by any collateral.

Securities Contract; Swap Agreement.  The parties hereto agree and acknowledge that
Deutsche is a “financial institution,” “swap participant” and “financial
participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of
Title 11 of the United States Code (the “Bankruptcy
Code”).  The parties hereto
further agree and acknowledge that it is their respective intention (A) that
this Confirmation be (i) a “securities contract,” as such term is defined in
Section 741(7) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder or in connection herewith is a “termination value,” “payment
amount” or “other transfer obligation” within the meaning of Section 362 of the
Bankruptcy Code and a “settlement payment” within the meaning of Section 546 of
the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in
Section 101(53B) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder or in connection herewith is a “termination value,” a
“payment amount” or “other transfer obligation” within the meaning of Section
362 of the Bankruptcy Code and a “transfer” within the meaning of Section 546
of the Bankruptcy Code, and (B) that Deutsche be entitled to the protections
afforded by, among other sections, Section 362(b)(6), 362(b)(17), 362(b)(27),
362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy
Code.

Repurchase Notices.  Counterparty shall, on any day on which
Counterparty effects any repurchase of Shares, promptly give Deutsche a written
notice of such repurchase (a “Repurchase Notice”)
on such day if following 

 11
 

such repurchase, the Unit Equity Percentage as
determined on such day is (a) equal to or greater than 4.5% and (b) greater by
0.5% than the Unit Equity Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater
than the Unit Equity Percentage as of the date hereof).  The “Unit Equity Percentage”
as of any day is the fraction (i) the numerator of which is the product of the
number of Note Hedging Units and the Note
Hedging Unit Entitlement, and (ii) the denominator of which is the number of
Shares outstanding on such day. 
Counterparty agrees to indemnify and hold harmless Deutsche and its
affiliates and their respective officers, directors, employees, advisors,
agents and controlling persons (each, a “Section 16  Indemnified Person”) from and against any
and all losses (including losses relating to Deutsche’s hedging activities as a
consequence of becoming, or of the risk of becoming, a Section 16 “insider”,
including without limitation, any forbearance from hedging activities or
cessation of hedging activities and any losses in connection therewith with
respect to the Transaction), claims, damages, judgments, liabilities and
expenses (including reasonable attorney’s fees), joint or several, to which a
Section 16 Indemnified Person may become subject, as a result of Counterparty’s
failure to provide Deutsche with a Repurchase Notice on the day and in the
manner specified in this paragraph, and to reimburse, upon written request,
each of such Section 16 Indemnified Persons for any reasonable legal or other
expenses incurred in connection with investigating, preparing for, providing
testimony or other evidence in connection with or defending any of the
foregoing.  If any suit, action,
proceeding (including any governmental or regulatory investigation), claim or
demand shall be brought or asserted against the Section 16 Indemnified Person,
such Section 16 Indemnified Person shall promptly notify Counterparty in
writing, and Counterparty, upon request of the Section 16 Indemnified Person,
shall retain counsel reasonably satisfactory to the Section 16 Indemnified
Person to represent the Section 16 Indemnified Person and any others
Counterparty may designate in such proceeding and shall pay the fees and
expenses of such counsel related to such proceeding.  Counterparty shall be relieved from liability
to the extent that the Section 16 Indemnified Person fails promptly to notify
Counterparty of any action commenced against it in respect of which indemnity
may be sought hereunder; provided, that
failure to notify Counterparty (x) shall not relieve Counterparty from any
liability hereunder to the extent it is not materially prejudiced as a result
thereof and (y) shall not, in any event, relieve Counterparty from any
liability that it may have otherwise than on account of this indemnity
agreement.  Counterparty shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, Counterparty agrees to indemnify any Section 16 Indemnified
Person from and against any loss or liability by reason of such settlement or
judgment.  Counterparty shall not,
without the prior written consent of the Section 16 Indemnified Person, effect
any settlement of any pending or threatened proceeding in respect of which any
Section 16 Indemnified Person is or could have been a party and indemnity could
have been sought hereunder by such Section 16 Indemnified Person, unless such
settlement includes an unconditional release of such Section 16 Indemnified
Person from all liability on claims that are the subject matter of such
proceeding on terms reasonably satisfactory to such Section 16 Indemnified
Person.  If the indemnification provided
for in this paragraph is unavailable to a Section 16 Indemnified Person or
insufficient in respect of any losses, claims, damages or liabilities referred
to therein, then Counterparty, in lieu of indemnifying such Section 16
Indemnified Person thereunder, shall contribute to the amount paid or payable
by such Section 16 Indemnified Person as a result of such losses, claims,
damages or liabilities.  The remedies
provided for in this paragraph are not exclusive and shall not limit any rights
or remedies that may otherwise be available to any Section 16 Indemnified Person
at law or in equity.  The indemnity and
contribution agreements contained in this paragraph shall remain operative and
in full force and effect regardless of the termination of the Transaction.

Alternative Calculations and Deutsche Payment on
Early Termination and on Certain Extraordinary Events.  If Deutsche owes Counterparty any amount in
connection with the Transaction pursuant to Sections 12.2, 12.3 (and
“Consequences of Merger Events” above), 12.6, 12.7 or 12.9 of the Equity
Definitions (except in the case of an Extraordinary Event in which the
consideration or proceeds to be paid to holders of Shares as a result of such
event consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement
(except in the case of an Event of Default in which Counterparty is the
Defaulting Party or a Termination Event in which Counterparty is the Affected
Party, other than (x) an Event of Default of the type described in Section
5(a)(iii), (v), (vi) or (vii) of the Agreement or (y) a Termination Event of
the type described in Section 5(b)(i), (ii), (iii), (iv), (v) or (vi) of the
Agreement that in the case of either (x) or (y) resulted from an event or
events outside Counterparty’s control) (a “Deutsche Payment
Obligation”), Counterparty shall have the right, in its sole
discretion, to require Deutsche to satisfy any such Deutsche Payment Obligation
by delivery of Termination Delivery Units (as defined below) by giving
irrevocable telephonic notice to Deutsche, confirmed in writing within one
Scheduled Trading Day, 

 12
 

between the hours of 9:00 a.m. and 4:00 p.m. New York
City time on the Early Termination Date or other date the transaction is
terminated, as applicable (“Notice of Deutsche
Termination Delivery”). 
Within a commercially reasonable period of time following receipt of a
Notice of Deutsche Termination Delivery, Deutsche shall deliver to Counterparty
a number of Termination Delivery Units having a cash value equal to the amount
of such Deutsche Payment Obligation (such number of Termination Delivery Units
to be delivered to be determined by the Calculation Agent as the number of
whole Termination Delivery Units that could be purchased over a commercially
reasonable period of time with the cash equivalent of such payment
obligation).  If the provisions set forth
in this paragraph are applicable, the provisions of Sections 9.8, 9.9,
9.10, 9.11 (modified as described above) and 9.12 of the Equity Definitions
shall be applicable, except that all references to “Shares” shall be read as
references to “Termination Delivery Units.”

“Termination Delivery Unit”
means (a) in the case of a Termination Event, an Event of Default or an
Extraordinary Event (other than an Insolvency, Nationalization or Merger
Event), one Share or (b) in the case of an Insolvency, Nationalization or
Merger Event, a unit consisting of the number or amount of each type of
property received by a holder of one Share (without consideration of any
requirement to pay cash or other consideration in lieu of fractional amounts of
any securities) in such Insolvency, Nationalization or Merger Event.  If a Termination Delivery Unit consists of
property other than cash or New Shares and Counterparty provides irrevocable
written notice to the Calculation Agent on or prior to the Closing Date that it
elects to receive cash, New Shares or a combination thereof (in such proportion
as Counterparty designates) in lieu of such other property, the Calculation
Agent shall replace such property with cash, New Shares or a combination
thereof as components of a Termination Delivery Unit in such amounts, as
determined by the Calculation Agent in its discretion by commercially
reasonable means, as shall have a value equal to the value of the property so
replaced.  If such Insolvency,
Nationalization or Merger Event involves a choice of consideration to be received
by holders, such holder shall be deemed to have elected to receive the maximum
possible amount of cash.

Rule 10b-18.  Except as disclosed to Deutsche in writing
prior to the date on which the offering of the Convertible Notes was first
announced, Counterparty represents and warrants to Deutsche that it has not
made any purchases of blocks by or for itself or any of its Affiliated
Purchasers pursuant to the one block purchase per week exception in Rule
10b-18(b)(4) under the Exchange Act during each of the four calendar weeks
preceding such date (“Rule 10b-18 purchase,”
“blocks” and “Affiliated
Purchaser” each as defined in Rule 10b-18 under the Exchange
Act).  Counterparty agrees and
acknowledges that it shall not, and shall cause its affiliates and Affiliated
Purchasers not to, directly or indirectly (including by means of a derivative
instrument) enter into any transaction to purchase any Shares during the period
beginning on such date and ending on the day on which Deutsche has informed
Counterparty in writing that it has completed all purchases of Shares or other
transactions to hedge initially its exposure to the Transaction, including any
increase in the Number of Note Hedge Units that may be agreed pursuant to “Amendment” above; provided that the
foregoing restriction shall not apply to purchasing in connection with any net
share settlement of the outstanding employee stock option effected by or for a
Counterparty “plan” by an “agent independent of the issuer” (each as
interpreted under Rule 10b-18).

Regulation M.  Counterparty was not on the date on which the
offering of the Convertible Notes was first announced, has not since such date,
and is not on the date hereof, engaged in a distribution, as such term is used
in Regulation M under the Exchange Act, of any securities of Counterparty,
other than a distribution meeting the requirements of the exception set forth
in Sections 101(b)(10) and 102(b)(7) of Regulation M under the Exchange
Act.  Counterparty shall not, until the
day on which Deutsche has informed Counterparty in writing that it has
completed all purchases of Shares to hedge initially its exposure to the
Transaction, including any increase in the Number of Note Hedge Units that may
be agreed pursuant to “Amendment”
above, engage in any such distribution.

No Material Non-Public Information.  On each
day during the period beginning on the date on which the offering of the
Convertible Notes was first announced and ending on the earlier of (x) the day
on which Deutsche has informed Counterparty in writing that Deutsche has
completed all purchases of Shares or other transactions to hedge initially its
exposure with respect to the Transaction, including any increase in the Number
of Note Hedge Units that may be agreed pursuant to “Amendment” above and (y) the thirty-first (31st) day
thereafter, Counterparty represents and warrants to Deutsche that it is not
aware of any material nonpublic information concerning itself or the Shares.

 13
 

Right to Extend. 
Deutsche may
postpone any potential Exercise Date or postpone or extend any other date of
valuation or delivery with respect to some or all of the relevant Note Hedging
Units (in which event the Calculation Agent shall make appropriate adjustments
to the Settlement Amount for such Note Hedging Units), if Deutsche determines,
in its reasonable discretion, that such extension is reasonably necessary or
appropriate to preserve Deutsche’s hedging or hedge unwind activity hereunder
in light of existing liquidity conditions or to enable Deutsche to effect purchases
of Shares in connection with its hedging, hedge unwind or settlement activity
hereunder in a manner that would, if Deutsche were Issuer or an affiliated
purchaser of Issuer, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and procedures
applicable to Deutsche.

Transfer or Assignment.  Neither Counterparty nor Deutsche may
transfer any of its rights or obligations under the Transaction without the
prior written consent of the other party, which will not be unreasonably
withheld or delayed except that no consent of Counterparty will be required in
connection with a transfer pursuant to the next paragraph.

If, as determined in Deutsche’s sole discretion, (x)
its “beneficial ownership” (within the meaning of Section 16 of the Exchange
Act and rules promulgated thereunder) exceeds 8% of Counterparty’s outstanding
Shares and (y) Deutsche is unable, after commercially reasonable efforts, to
effect a transfer or assignment on pricing terms and within a time period
reasonably acceptable to it of all or a portion of the Transaction pursuant to
the preceding paragraph to reduce such “beneficial ownership” below 8%,
Deutsche may designate any Scheduled Trading Day as an Early Termination Date
with respect to a portion (the “Terminated
Portion”) of this Transaction, such that its “beneficial ownership”
following such partial termination will be approximately equal to but less than
8%.  In the event that Deutsche so
designates an Early Termination Date with respect to a portion of this
Transaction, a payment shall be made pursuant to Section 6 of the Agreement as
if (i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to this Transaction and a Number of Note Hedging
Units equal to the Terminated Portion, (ii) Counterparty shall be the sole
Affected Party with respect to such partial termination and (iii) such
Transaction shall be the only Terminated Transaction (and, for the avoidance of
doubt, the provisions set forth under the caption “Alternative
Calculations and Deutsche Payment on Early Termination and on Certain
Extraordinary Events”
shall apply to any amount that is payable by Deutsche to Counterparty pursuant
to this sentence).

Notwithstanding any other provision in this
Confirmation to the contrary requiring or allowing Deutsche to purchase, sell,
receive or deliver any shares or other securities to or from Counterparty,
Deutsche may designate any of its affiliates to purchase, sell, receive or
deliver such shares or other securities and otherwise to perform Deutsche’s
obligations in respect of the Transaction and any such designee may assume such
obligations.  Deutsche shall be
discharged of its obligations to Counterparty to the extent of any such performance.

Severability; Illegality.  If compliance by either party with any
provision of the Transaction would be unenforceable or illegal, (a) the
parties shall negotiate in good faith to resolve such unenforceability or
illegality in a manner that preserves the economic benefits of the transactions
contemplated hereby and (b) the other provisions of the Transaction shall
not be invalidated, but shall remain in full force and effect.

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.

Early Unwind.  In the
event the sale of Convertible Notes is not consummated with the underwriter
thereof for any reason by the close of business in New York on June 27, 2007
(or such later date as agreed upon by the 

 14
 

parties) (June 27, 2007 or such
later date as agreed upon being the “Early Unwind Date”),
the Transaction shall automatically terminate (the “Early Unwind”)
on the Early Unwind Date and (a) the Transaction and all of the respective
rights and obligations of Deutsche and Counterparty under the Transaction shall
be cancelled and terminated and (b) each party shall be released and discharged
by the other party from and agrees not to make any claim against the other
party with respect to any obligations or liabilities of the other party arising
out of and to be performed in connection with the Transaction either prior to
or after the Early Unwind Date; provided that
Counterparty shall purchase from Deutsche on the Early Unwind Date all Shares
purchased by Deutsche or one or more of its affiliates, and assume, or
reimburse the cost of, derivatives entered into by Deutsche or one or more of
its affiliates, in each case, in connection with hedging the Transaction and
the unwind of such hedging activities. 
The amount payable by Counterparty shall be Deutsche’s (or its
affiliates) actual cost of such Shares and unwind cost of such derivatives as
Deutsche informs Counterparty and shall be paid in immediately available funds
on the Early Unwind Date.  Deutsche and
Counterparty represent and acknowledge to the other that, subject to the
proviso included in the preceding sentence, upon an Early Unwind, all
obligations with respect to the Transaction shall be deemed fully and finally
discharged.

	
  Governing law:

  	
  This Confirmation and the Agreement shall be
  governed by and construed in accordance with the law of the State of New
  York.

  

 

Contact information.
For purposes of the Agreement (unless otherwise specified in the Agreement),
the addresses for notice to the parties shall be:

(a) Counterparty

NovaMed,
Inc.

980
North Michigan Avenue, Suite 1620

Chicago,
Illinois 60611

Attention:  The Chief Executive Officer and the Chief
Financial Officer

(b)
Deutsche

Deutsche Bank AG London

c/o Deutsche Bank AG New York

60 Wall Street 

New York, NY 10005

Attention:
Documentation Department

 15
 

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

Counterparty
hereby agrees to check this Confirmation and to confirm that the foregoing
correctly sets forth the terms of the Transaction by signing in the space
provided below and returning to Deutsche a facsimile of the fully-executed
Confirmation to Deutsche at 44 113 336 2009. 
Originals shall be provided for your execution upon your request.

We
are very pleased to have executed the Transaction with you and we look forward
to completing other transactions with you in the near future.

Very
truly yours,

DEUTSCHE BANK AG LONDON

	
  By:

  	
  /s/ Lee Frankenfield

  	
   

  
	
   

  	
  Name: Lee Frankenfield

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
  By:

  	
  /s/ Sunil Hariani

  	
   

  
	
   

  	
  Name: Sunil Hariani

  
	
   

  	
  Title: Director

  

 

DEUTSCHE BANK AG NEW YORK,

acting solely as Agent
in connection with this Transaction

	
  By:

  	
  /s/ Lee Frankenfield

  	
   

  
	
   

  	
  Name: Lee Frankenfield

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
  By:

  	
  /s/ Andrew Yaeger

  	
   

  
	
   

  	
  Name: Andrew Yaeger

  
	
   

  	
  Title: Director

  

Counterparty hereby
agrees to, accepts and confirms the terms of the foregoing as of the Trade
Date.

NOVAMED, INC.

	
  By:

  	
  /s/ Scott T. Macomber

  	
   

  
	
   

  	
  Name: Scott T. Macomber

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President and

  Chief Financial Officer

  	
   

  
				

 

 16ex41.htm

    EXHIBIT
      4.1

    

    SPECIMEN
      OF COMMON STOCK CERTIFICATE

    

    CAPITAL
      EQUITY FINANCE, INC.

    Incorporated
      Under the Law of the State of Florida

    

    100,000,000
      COMMON SHARES PAR VALUE $0.001 PER SHARE

    

    This
      certifies that _________________________________________________ is the
      registered holder of ____________________________________________________ Shares
      transferable on the books of the Corporation by the holder hereof in person
      or
      by Attorney upon surrender of this Certificate properly endorsed.

    

    In
      Witness Whereof, the said Corporation has caused this Certificate to be signed
      by its duly authorized officers and its Corporate Seal to be hereunto affixed
      this ___ day of _________, A.D. 20__ .

    

    

    
      	 	 	 
	
              President

            	 	 Secretary

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