Document:

Exhibit 10.62

	

EXHIBIT 10.26 

AMENDMENT TO DIAMOND
SHAMROCK, INC. 
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Ultramar Diamond Shamrock
Corporation, a Delaware corporation, pursuant to authority granted by its Board
of Directors, hereby adopts the following amendments to the Diamond Shamrock,
Inc. Supplemental Executive Retirement Plan (the “DS SERP”). Such
amendments shall be effective as of May 1, 2000, subject to such further
limitations and restrictions as are set forth below. 

	1.		
The version of Section 2(a) (defining “Average Monthly Compensation”)
which applies to any employee who was designated a Participant in the Plan on or
after December 5, 1995 shall similarly apply to each employee who (i) was
designated a Participant in the Plan prior to December 5, 1995 and (ii) remains
employed by Ultramar Diamond Shamrock Corporation on the date set forth above. 

	2.		
The version of Section 2(b) (defining “Basic Compensation”) which
applies to any employee who was designated a Participant in the Plan on or after
December 5, 1995 still similarly apply to each employee who (i) was designated a
Participant in the Plan prior to December 5, 1995 and (ii) remains employed by
Ultramar Diamond Shamrock Corporation on the date set forth above. 

	3.		
Section 2(f) is amended and restated, in its entirety, effective for any person
who remains employed by Ultramar Diamond Shamrock Corporation on the date set
forth above, as follows: 

	 	
(f)
"Change in Control" shall mean the occurrence of any event which constitutes a "Change in
Control" under the Ultramar Corporation Supplemental Executive Retirement Plan.

	4. 		Section
2(g) is amended and restated, in its entirety, as follows: 

	 	
(g)
"Corporation" means Ultramar Diamond Shamrock Corporation, a Delaware corporation.

	5. 		Section
4(b) is amended and restated, in its entirety, as follows: 

	 	
Notwithstanding
the provisions of Section 4(a) hereof, the Corporation has established a trust to provide
for the payment of benefits due under the Plan (hereafter, the "Trust"), under such
circumstances (including a Change in Control) as are specified under the terms of the
Trust. The trustee of the Trust is Sterling National Bank and Trust Company of New York.
To the extent that the Trust does not pay the benefits under the Plan to which any
Participant (or beneficiary thereof) is entitled, the Corporation remains responsible to
do so. Moreover, all assets of the Trust remain, at all times, subject to the claims of
the Corporation's creditors in the event of the Corporation's insolvency, and no
Participant (or any beneficiary thereof) shall, at any time, have a prior claim to any
Trust assets.

	

	6. 		A
new final sentence is added to Section 9(d), as follows: 

	 	
Notwithstanding
any other provision of the Plan to the contrary, the foregoing provisions of this
subsection (d) shall so apply with respect to any Participant (or any beneficiary
thereof) only if such Participant otherwise consents, in a writing in accordance with the
requirements of Section 12.11 of such Participant's employment agreement with the
Corporation, to such application of Dialogue.

	7.		
A new Section 14 is added, effective for any person who remains employed by
Ultramar Diamond Shamrock Corporation on the date set forth above, as follows: 

					14.  		Special
Change in Control Provisions. 

							(a)  		The
provisions of this Section 14 shall apply with respect to each Participant in the group
listed in subsection (b) hereof (each, hereafter, a "Covered Participant") who, except as
otherwise provided in this Section 14, remains employed by the Corporation (or any
subsidiary or affiliate of the Corporation) (collectively, "UDS") upon the occurrence of
a Change in Control (with the date on which such Change of Control occurs being hereafter
referred to as the "Change in Control Date"). The provisions of this Section 14 shall
apply, notwithstanding any other provision of the Plan to the contrary. 

							(b)  		The
Covered Participants, identified by social security number, are as follows: 

###-##-####

###-##-####

###-##-####

###-##-####

							(c)  		Each
Covered Participant who remains employed with UDS on the Change in Control Date shall,
within thirty (30) days following such date, receive a lump sum distribution on account
of such person's participation in the Plan, in an amount determined under whichever of
the following subsections (f), (g) or (h) shall apply with respect to such person. 

							(d)  		The
Average Monthly Compensation of each Covered Participant who remains employed with UDS on
the Change in Control Date shall, for all purposes of the Plan, be determined with the
following modifications: 

	

									 		 

									(i)  		the
"considered period" (as that phrase is otherwise used in the definition of Average
Monthly Compensation) shall include the calendar year in which the Change in Control Date
occurs, as well as each of the two immediately succeeding years, 

									(ii)  		such
Covered Participant's Basic Compensation for each of these three calendar years shall be
deemed equal to the Basic Compensation paid to such Participant during the calendar year
immediately preceding the calendar year in which the Change in Control Date occurs, and 

									(iii)  		such
Covered Participant's Incentive Compensation earned with respect to each of these three
calendar years shall be deemed equal to such Participant's Incentive Compensation earned
with respect to the calendar year immediately preceding the calendar year in which the
Change in Control Date occurs. 

	 	The
aforementioned provisions of this subsection (d) shall also apply in determining the
amount of any subsequent distribution to which such person may otherwise be entitled,
except to the extent that such person would receive a larger such distribution in the
absence of the application of this subsection (d) to such subsequent distribution.

							(e)  		The
following definitions shall apply for purposes of this Section 14: 

									(i)  		"PBGC
Factors" shall, with respect to any Covered Participant, mean (I) the interest rate
issued by the Pension Benefit Guaranty Corporation for private sector lump sum payments,
as such rate is in effect on the first day of the calendar year in which the Change in
Control Date occurs and (II) the Unisex Pension 1984 (1, -3) mortality table. 

									(ii)  		"GATT
Factors" shall, with respect to any Covered Participant, mean the annual interest rate on
30-year United States Treasury securities, as specified by the Commissioner of Internal
Revenue, for the month of December in the calendar year preceding the calendar year in
which the Change in Control Date occurs and (II) the prevailing commissioners' standard
table (described in Section 807(d)(5)(A) of the Code) used to determine reserves for
group annuity contracts issued on the Change in Control Date, as set forth in Revenue
Ruling 95-6, or any subsequent guidance thereto. 

	

							(f)  		For
a Covered Participant described in the foregoing subsection (c) who, on the Change in
Control Date, is at least age 59, the lump sum payable to such person under the foregoing
subsection (c) shall be determined in the following steps, with the lump sum being the
amount determined under the following clause (ii): 

									(i)  		Determine
the amount of the monthly Normal Retirement Benefit which would otherwise be immediately
payable to such person under Section 6(a), after taking into account the provisions of
the foregoing subsection (d), with such benefit calculated as if (A) such person was
three years older than such person's then actual age, (B) such person terminated
employment on the Change in Control Date and (C) such person's Normal Retirement Date was
also the Change in Control Date; provided, however, that in making such determination, in
calculating such Covered Participant's Section 6(a) monthly Normal Retirement Benefit
(which is the starting point in calculating such Covered Participant's Early Retirement
Benefit), the amount of any particular Other Retirement Benefit taken into account in
determining "the sum of his Other Retirement Benefits" (as that phrase is used in Section
6(a)) shall be determined with reference to the amount of such particular Other
Retirement Benefit which would otherwise be payable to such Covered Participant, starting
on the Change in Control Date, had such person both terminated employment and commenced
to receive such benefit, as of such date. 

									(ii)  		Determine
the immediate present value, based upon such Covered Participant's then actual age, of
the monthly benefit amount, calculated under the foregoing clause (i), which would
otherwise be paid to such person, starting on the Change in Control Date, with such
present value determined using the PBGC Factors; provided, however, that such present
value shall instead be determined using the GATT Factors, to the extent that doing so
would result in a larger such immediate present value. 

	

							(g)  		For
a Covered Participant described in the foregoing subsection (c) who, on the Change in
Control Date, is less than age 59, but no less than three years younger than the age
corresponding to such person's Early Retirement Date, the lump sum payable to such person
under the foregoing subsection (c) shall be determined in the following steps, with the
lump sum being the amount determined under the following clause (ii): 

									(i)  		Determine
the amount of the monthly Early Retirement Benefit which would otherwise be immediately
payable to such person under Section 6(b), after taking into account the provisions of
the foregoing subsection (d), with such benefit calculated as if (A) such person was
three years older than such person's then actual age, (B) such person terminated
employment on the Change in Control Date and (C) such person's Early Retirement Date was
also the Change in Control Date; provided, however, that in making such determination, in
calculating such Covered Participant's Section 6(a) monthly Normal Retirement Benefit: 

									(I)  		to
the extent such Covered Participant is at least age 55 on the Change in Control Date, the
amount of such particular Other Retirement Benefit taken into account in determining "the
sum of his Other Retirement Benefits" shall be determined with reference to the amount of
such particular Other Retirement Benefit which would otherwise be payable to such Covered
Participant, starting on the Change in Control Date, had such person both terminated
employment and commenced to receive such benefit, as of such date, and 

									(II)  		to
the extent such Covered Participant is less than age 55 on the Change in Control Date,
the amount of such particular Other Retirement Benefit taken into account in determining
"the sum of his Other Retirement Benefits" shall be determined with reference to the
amount of such particular Other Retirement Benefit which would otherwise be payable to
such Covered Participant, starting at age 55, but with the amount otherwise payable at
age 55 determined, to the extent otherwise relevant under the plan or program under, or
with respect to, which such particular Other Retirement Benefit is otherwise paid, based
upon such person's actual age on the Change in Control Date. 

	

									(ii)  		Determine
the immediate present value, based upon such Covered Participant's then actual age, of
the monthly benefit amount, calculated under the foregoing clause (i), which would
otherwise be paid to such person, starting on the Change in Control Date, with such
present value determined using the PBGC Factors; provided, however, that such present
value shall instead be determined using the GATT Factors, to the extent that doing so
would result in a larger such immediate present value. 

							(h)  		For
a Covered Participant described in the foregoing subsection (c) who, on the Change in
Control Date, is more than three years younger than the age corresponding to such
person's Early Retirement Date, the lump sum payable to such person under the foregoing
subsection (c) shall be determined in the following steps, with the lump sum being the
amount determined under the following clause (iii): 

									(i)  		Determine
the amount of the monthly Early Retirement Benefit which would otherwise be payable to
such person under Section 6(b), after taking into account the provisions of the foregoing
subsection (d), commencing with such person's attainment of the age corresponding to such
person's Early Retirement Date, calculated as if such person had terminated employment on
the Change in Control Date and with the amount of the reduction for early benefit payment
under Section 6(b) being determined as of such person were, on the Change in Control
Date, exactly the age corresponding to such person's Early Retirement Date; provided,
however, that in making such determination, in calculating such Covered Participant's
Section 6(a) monthly Normal Retirement Benefit, the amount of any particular Other
Retirement Benefit taken into account in determining "the sum of his Other Retirement
Benefits" shall be determined with reference to the amount of such particular Other
Retirement Benefit which would otherwise be payable to such Covered Participant, starting
at age 55, but with the amount otherwise payable at age 55 determined, to the extent
otherwise relevant under the plan or program under, or with respect to, which such
particular Other Retirement Benefit is otherwise paid, based upon such person's actual
age on the Change in Control Date. 

	

									(ii)  		Determine
the actuarial equivalent monthly benefit commencing on the Change in Control Date, and
treating such Covered Participant, for this purpose, as if such person was three years
older than such person's then actual age, of the monthly benefit amount, calculated under
the foregoing clause (i), which would otherwise commence to be paid to such person when
such person attains the age corresponding to such person's Early Retirement Date, with
such actuarial equivalence determined using the PBGC Factors. 

									(iii)  		Determine
the immediate present value, based upon such Covered Participant's then actual age, of
the monthly benefit amount calculated under the foregoing clause (ii), with such present
value determined using the PBGC Factors. 

	 	Notwithstanding
the foregoing clauses (ii) and (iii), actuarial equivalence, for purposes of such clause
(ii), and present value, for purposes of such clause (iii), shall instead be determined
using the GATT Factors, but only to the extent that using the GATT Factors under both
such clauses (ii) and (iii) would result in a larger lump sum amount being determined
under such clause (iii).

					(i)  		Attached
to the Plan, as Exhibit A, is a separate schedule for each Covered Participant (together
with certain supporting schedules) illustrating the manner, in accordance with the
methodology set out in the foregoing provisions of this Section 14, in which the lump sum
payment described in the foregoing subsection (c) would be calculated for such person,
assuming that (I) the Change in Control Date occurs on December 31, 2000 and (II) such
person remains employed by UDS on that date. In the event of a Change in Control
occurring on December 31, 2000, the amount of the lump sum payable under such subsection
(c) to any Covered Participant who remains employed by UDS on such date shall be the
amount set forth with respect to such person in the relevant attached schedule. In the
event that a Change in Control Date occurs on some other date, the methodology set out in
such schedules (including such supporting schedules) shall be dispositive in resolving
any issues which may arise in connection with determining the amount of the lump sum
provided under the foregoing subsection (c) and otherwise payable to any such Covered
Participant with respect to such other Change in Control Date. Notwithstanding the
foregoing, in the case of that Covered Participant identified under subsection (l) of
this Section 14, the amount set forth in such person's schedule shall be reduced in
accordance with the provisions of such subsection (l). 

	

					(j)  		If
a Covered Participant who receives a lump sum distribution pursuant to the provisions of
the foregoing subsection (f), (g) or (h), as the case may be, continues to be employed by
UDS and thereafter becomes entitled to a subsequent distribution with respect to the
Plan, such person's monthly Normal Retirement Benefit, for purposes of determining the
amount, if any, of such subsequent distribution, shall be equal to the excess of: 

							(i)  		the
amount of such monthly Normal Retirement Benefit, determined by disregarding the prior
lump sum distribution pursuant to the foregoing subsections (f), (g) or (h), as the case
may be, over, 

							(ii)  		the
amount of the monthly Normal Retirement Benefit which was taken into account under the
foregoing subsection (f), (g), or (h), as the starting point in determining the amount of
such prior lump sum determined under such respective subsection. 

	 	Additionally,
for purposes of applying the provisions of Section 6(b) with respect to such subsequent
distribution, such person shall be treated as being three years older than such person's
actual age. In all other respects, the amount of any subsequent distribution shall be
determined in accordance with such rules of uniform application as may be established by
the Employee Benefits Committee.

							(k)  		Notwithstanding
any of the foregoing provisions of this Section 14 to the contrary, in the event of a
Covered Participant's "involuntary termination, other than for Cause" (as those terms are
defined under such person's employment agreement with the Corporation), in anticipation
of a Change in Control: 

	

									(i)  		the
foregoing provisions of this Section 14 shall apply to such person, 

									(ii)  		pursuant
thereto, a Change in Control so triggering the application of the foregoing provisions of
this Section 14 with respect to such person shall, solely with respect to such person, be
considered to have occurred on the date immediately preceding the date on which such
person is so terminated from employment, and  

									(iii)  		such
person's benefit under the UDS Pension Plan, for purposes of determining "the sum of his
Other Retirement Benefits", shall be computed by including the additional years of age
and service credit which were (or will be) taken into account, pursuant to the provisions
of Section 5.5(i)(a)(3) of such person's employment agreement with the Corporation, in
computing the amount of the lump sum payment made (or to be made) to such person in lieu
of an actual increase in such person's benefit under the UDS Pension Plan. 

							(l)  		Each
Covered Participant who remains employed with UDS on the Change in Control Date,
determined without regard to the foregoing subsection (k), shall receive a lump sum
payment in the amount specified below, upon the earlier of: 

									(i)  		such
person's "involuntary termination, other than for Cause," as those terms are defined
under the employment agreement between such person and the Corporation; provided,
however, that an "involuntary termination" shall not be deemed to have occurred for
purposes of this clause (i) in the event that such person voluntarily terminates
employment on account of a significant reduction, occurring not later than the Change in
Control Date, in such person's duties or the addition, occurring not later than the
Change in Control Date, of duties which, in either case, are materially inconsistent with
such person's then title or position, such that no amount shall be paid pursuant to this
subsection (m) to such person; and further, provided, however, that an "involuntary
termination" shall be deemed to have occurred for purposes of this clause (i) in the
event that such person voluntarily terminates employment on account of a significant
reduction, occurring subsequent to the Change in Control Date, in such person's duties or
the addition, occurring subsequent to the Change in Control Date, of duties which, in
either case, are materially inconsistent with such person's title or position as in
effect on the Change in Control Date, such that an amount shall be paid pursuant to this
subsection (m) to such person, or 

	

									(ii)  		twelve
months following the Change in Control Date, provided such person is still employed by
UDS on such date. 

	 	No
amount shall be payable pursuant to this subsection (m) in the case of any Covered
Participant who terminates employment prior to the date set forth in the foregoing clause
(ii) for any reason not described in the foregoing clause (i).

	 	Any
amount otherwise payable pursuant to this subsection (m) to any Covered Participant (i)
shall not be reduced by any amounts previously paid to such person pursuant to any other
provision of the Plan and (ii) shall be disregarded in determining the amount of any
future benefits otherwise payable to such person pursuant to any other provision of the
Plan.

	The  		amount
payable to each such Covered Participant, assuming such person otherwise meets the
requirements of the foregoing provisions of this subsection (m) is the amount set forth
opposite such person's social security number, as follows:  

###-##-####     $500,000

###-##-####     $250,000
###-##-####     $500,000
###-##-####     $250,000 

ULTRAMAR DIAMOND SHAMROCK CORPORATION 

By: /s/ Jean Gaulin
        ———————————————

       Jean Gaulin
       Chairman, President &CEOExhibit 10.60

	

EXHIBIT 10.60  

February 8, 2001 

Ultramar Diamond Shamrock Corporation
6000
N. Loop 1604 W.
San Antonio, TX 78249
Attention:
Steve Blank, Vice President and Treasurer 

Dear Ladies and Gentlemen: 

     The
purpose of this letter agreement (this “Confirmation”) is to
confirm the terms and conditions of the Transaction entered into between us 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 supplements, forms part of, and is subject to, the ISDA Master
Agreement dated as of November 1, 1996, as amended and supplemented from time to
time (the “Agreement”), between Morgan Guaranty Trust Company
of New York, London Branch (“Seller”) and Ultramar Diamond
Shamrock Corporation, a Delaware corporation (“Purchaser”). All
provisions contained in the Agreement govern this Confirmation except as
expressly modified below. 

ARTICLE 1
PURCHASE OF THE STOCK  

     Section
1.01. Purchase of the Stock. Subject to the terms and conditions of this
Confirmation, the Purchaser agrees to purchase from the Seller, and the Seller agrees to
sell to the Purchaser, on February 8, 2001 or on such other Business Day as the Purchaser
and the Seller shall otherwise agree (the “Trade Date”), 10,000,000
shares (the “Number of Shares”) of the Purchaser’s common stock,
$.01 par value per share (“Common Stock”), for a purchase price equal to
$32.29 per share (the “Initial Purchase Price”); provided that if
the Seller is unable to borrow or otherwise acquire a number of shares of Common Stock
equal to the Number of Shares for delivery to the Seller on the Initial Settlement Date,
the Number of Shares shall be reduced to such number of shares of Common Stock that the
Seller is able to borrow or otherwise acquire. The Initial Purchase Price shall be
subject to adjustment and such adjusted amounts will be payable as provided in Article 3
hereof.  

     Section
1.02. Commission. The Purchaser hereby agrees to pay to J.P. Morgan Securities Inc. a
commission equal to $.04 per share in connection with the Purchaser's purchase of the
Number of Shares (the “Commission”). 

	

     Section
1.03. Delivery And Payment. On the third Business Day immediately following
the Trade Date (such third Business Day, the “Initial Settlement Date”),
the Seller shall deliver the Number of Shares to the Purchaser, upon payment by the
Purchaser to the Seller of an amount equal to the product of (x) the sum of the
Commission and the Initial Purchase Price and (y) the Number of Shares, payable in
immediately available funds by wire transfer to the account of the Seller specified to
the Purchaser no later than one Business Day prior to the Initial Settlement Date.  

     Section
1.04. Conditions To Seller’s Obligations. The Seller’s obligation to
deliver the Number of Shares to the Purchaser on the Initial Settlement Date is subject
to the condition that (a) the representations and warranties made by the Purchaser in
this Agreement shall be true and correct at and as of the date hereof and the Initial
Settlement Date and (b) Seller shall have received an opinion of the counsel for the
Purchaser, substantially to the effect set forth in Exhibit C.  

ARTICLE 2
DEFINITIONS 

     Section
2.01. Definitions. (a) As used in this Confirmation, the following terms shall have the
following meanings:  

     “Adjustment
Amount” means with respect to (i) any Interim Adjustment Date, the
Interim Adjustment Amount and (ii) the Expiration Date, the Purchaser Adjustment
Amount. 

     “Adjustment
Date” means any Interim Adjustment Date or the Expiration Date.  

     “Adjustment
Period” means, for any Adjustment Date, the period from and including
the later of (i) the Trade Date and (ii) any Interim Adjustment Date prior to
such Interim Adjustment Date, to and excluding such Adjustment Date; provided
that if such Adjustment Date is the Expiration Date, the Expiration Date
shall be included in the Adjustment Period. 

     “Adjustment
Settlement Date” means the third Business Day following any Interim Adjustment Date;
provided that if the Purchaser elects pursuant to Section 3.02(b) to deliver Payment
Shares, the Adjustment Settlement Date shall be (i) the Trading Day immediately after the
day on which the Seller informs the Purchaser of the number of Payment Shares required to
be delivered pursuant to Section 3.02(b), (ii) the date the Purchaser delivers cash
instead of Payment Shares pursuant to Section 3.02(b)(ii) or (iii) if the Seller shall
have elected pursuant to Section 3.05 to require the Purchaser to comply with the
Registration Procedures contained in Exhibit B, the Registered Share Delivery Date (as
defined in clause (a) of Exhibit B).  

 2

	

     “Agreement”
has the meaning set forth in the second paragraph hereto. 

     “Affiliated
Purchaser” means any “affiliated purchaser” (as such term is
defined in Rule 10b-18) of Purchaser. 

     “Alternative
Termination Delivery Unit” means (i) in the case of a Termination Event
(other than a Merger Event) or Event of Default (as defined in the Agreement),
one share of Common Stock and (ii) in the case of a Merger Event, a unit
consisting of the number or amount of each type of property received by a holder
of one share of Common Stock in such Merger Event; provided that if such
Merger Event involves a choice of consideration to be received by holders of the
Common Stock, an Alternative Termination Delivery Unit shall be deemed to
include the amount of cash received by a holder who had elected to receive the
maximum possible amount of cash as consideration for his shares. 

     “Averaging
Period” means the period from (but excluding) the Final Discretionary
Purchase Date until (and including) Expiration Date. 

     “Bankruptcy
Code” has the meaning set forth in Section 9.06. 

     “Blackout
Period” has the meaning set forth in Section 4.02(c). 

     “Borrow
Cost” means, for any date, the LIBOR Rate minus the Rebate Rate. 

     “Business
Day” means any day on which the Exchange is open for trading. 

     “close
of business” means, with respect to any Business Day, the close of trading in the regular
session of the Exchange on such day. 

     “Closing
Price” shall mean with respect to shares of Common Stock, the closing
sale price per share (or if no closing price is reported, the reported last sale
price) of such Common Stock as reported in the composite transactions for the
principal United States securities exchange on which such Common Stock is then
listed or, if such Common Stock is not listed on a United States securities
exchange, the average of the last reported independent bid and offer prices per
share of such Common Stock as reported in the composite transactions for the
principal United States market quotation system on which such Common Stock is
then admitted for trading; provided that if the hours of trading on such
exchange or quotation system are extended past 4:00 p.m., “Closing
Price” shall mean the last such reported prices at or prior to 4:00
p.m. or such other time as the parties shall otherwise agree. 

     “Commission”
has the meaning set forth in Section 1.02. 

3 

	

     “Common
Stock” has the meaning set forth in Section 1.01. 

     “Confirmation”
has the meaning set forth in the first paragraph hereto. 

     “Contract
Period” means the period from (and including) the Trade Date until (and
including) the Expiration Date. 

     “Daily
Share Purchase Amount” means, for any Purchase Date, the number of
shares of Common Stock purchased by Seller pursuant to Section 4.01(a) or (b).
For the avoidance of doubt, the Daily Share Purchase Amount for any day that is
not a Purchase Date in the Contract Period shall be zero. 

     “Default
Notice Day” has the meaning set forth in Section 7.02. 

     “Deficit Amount”
means an amount equal to (i) the value of any shares of Common Stock or
Alternative Termination Delivery Units not delivered on a date when otherwise
deliverable hereunder as a result of provisos limiting deliveries to the number
of Maximum Delivery Shares and any authorized but unissued shares of Common
Stock not reserved for Other Transactions (such value to be equal to the value
ascribed to such shares or units in determining how many such shares or units
were originally required to be delivered), minus (ii) the amount of any
cash paid and the value determined pursuant to Section 3.04(b) of any shares or
units previously delivered with respect to such Deficit Amount pursuant to
Section 3.04 plus (ii) interest on each amount calculated pursuant to
clause (i), accruing and compounding daily at a rate equal to the LIBOR Rate
plus 200 basis points, as calculated by the Seller, from and including the date
when the corresponding shares or units would otherwise have been required to be
delivered to but excluding the date upon which the corresponding portion of the
Deficit Amount is paid or delivered in full. 

     “Deficit
Share Delivery Date” means the third Business Day following the
determination of the value of the Deficit Shares by the Seller pursuant to
Section 3.04(b). 

     “Deficit
Shares” has the meaning set forth in Section 3.04(a). 

     “Discretionary
Purchase Period” means the period from (and including) the Trade Date
to (and including) the Final Discretionary Purchase Date. 

     “Excess
Borrow Cost” means, for any date which is not a Purchase Date, an
amount, so long as such amount is greater than zero, calculated in accordance
with the following formula: 

4 

	

     

     (RS x IPP x ((ORR - RR) x FVFI) / 360

     where

     RS            =          the Remaining Shares as of such date;
     IPP           =          the Initial Purchase Price;
     ORR           =          the Rebate Rate for the Purchase Date immediately
                              preceding such date;
     RR            =          the Rebate Rate as of such date;
     FVFI          =          the Future Value Factor for such day; provided that
                              "n" in the definition thereof shall be the number of
                              calendar days from, but excluding, such day, to and
                              including the Expiration Date.

	

     “Exchange”
means the New York Stock Exchange.  

     “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 

     “Expiration
Date” means the Trading Day on which the Remaining Shares equal zero. 

     “Extended
Settlement Date” means an Adjustment Settlement Date or the Final Settlement Date, as
applicable, in each case as extended pursuant to the provisos in the definitions thereof.  

     “Federal
Funds Rate” means, for any day, the rate on such day for Federal Funds,
as published by Telerate on page 129, titled Federal Funds Rate, under the
column, “Open”; provided, that if any such day is not a New
York Banking Day, the Federal Funds Rate for such day shall be the Federal Funds
Rate for the immediately preceding New York Banking Day. 

     “Final
Adjustment Period” means the period from and including the later of (i)
the Trade Date or (ii) the last Interim Adjustment Date prior to the Expiration
Date, to and including the Expiration Date. 

     “Final
Discretionary Purchase Date” means the date 200 Trading Days following
the Trade Date; provided that such date shall be extended by a number of
Trading Days equal to the number of Trading Days for which purchases of Common
Stock by the Seller are suspended pursuant to Section 4.02. 

     “Final Settlement Date” means the third Business Day following the Expiration Date; provided that if
the Purchaser elects pursuant to Section 3.01(b) to deliver Payment Shares, the Final Settlement Date shall be
the Trading Day immediately after (i) the day on which the Seller informs the Purchaser of the number of Payment
Shares required to be delivered pursuant to Section 3.01(b), (ii) the date the Purchaser delivers cash instead of
Payment Shares pursuant to Section 3.02(a)(ii) or (iii) if the Seller shall have elected pursuant to Section 3.05
to require the Purchaser to comply with the Registration Procedures contained in Exhibit B, the Registered Share
Delivery Date (as defined in clause (a) of Exhibit B). 

5 

	

     “Future
Value Factor” means, on any day, an amount calculated according to the
following formula: 

                              1 + ILIBOR x n/360

where

         ILIBOR        =           the Interpolated LIBOR Rate for such day; and
         N             =           the number of calendar days from, but excluding, such
                                   day, to, and including, the earlier of (i) the first
                                   Interim Adjustment Date following such day or (ii) the
                                   Expiration Date.

	

     “Indemnified
Person” has the meaning set forth in Section 9.02. 

     “Indemnifying
Person” has the meaning set forth in Section 9.02. 

     “Initial
Purchase Price” has the meaning set forth in Section 1.01. 

     “Initial Settlement
Date” has the meaning set forth in Section 1.03. 

     “Interest
Adjustment Amount” means, for any Purchase Date in the Contract Period,
an amount (which may be positive or negative) calculated according to the
following formula: 

	

                                      (SP-IPP) x FFR x DSA x n/360
where

         SP            =                 the Settlement Price per Share for such Purchase Date;
         IPP           =                 the Initial Purchase Price;
         FFR           =                 the Federal Funds Rate for such Purchase Date;
         DSA           =                 the Daily Share Purchase Amount for such Purchase
                                         Date; and
         n             =                 the number of calendar days in the period commencing on (but excluding) the
third Trading Day immediately following such day and ending on (and including)
the earlier of the third Trading Day immediately following (i) the first Interim
Adjustment Date following such day or (ii) the Expiration Date.

	

6 

	

     For
the avoidance of doubt, the Interest Adjustment Amount shall be zero for any day
that is not a Purchase Date. 

     “Interim
Adjustment Amount” means, for any Interim Adjustment Date, an amount
equal to (i) the sum of the Settlement Prices for all Purchase Dates during the
corresponding Adjustment Period, minus (ii) the applicable Strike Price
multiplied by the sum of the Daily Share Purchase Amounts for all Purchase Dates
occurring during the corresponding Adjustment Period. 

     “Interim
Adjustment Date” means any date occurring prior to the Expiration Date
that is specified as such by the Seller pursuant to Section 3.02. 

     “Interim
Adjustment Trigger” means, for any date, the Interim Adjustment Amount as of such date,
calculated as if such date were an Interim Adjustment Date, divided by the Closing Price
for the Trading Day immediately preceding such date.  

     “Interpolated
LIBOR Rate” means, for any day, the LIBOR rate for deposits in U.S.
dollars for the period commencing on (but excluding) such day and ending on (and
including) the earlier of the next Interim Adjustment Date or the Expiration
Date, as determined in good faith by the Seller by an interpolation of published
LIBOR rates for the relevant period, as such rates are published on Telerate
page 3750 as of 11:00 a.m., London time on such day (or such other page as may
replace that page on that service, or such other service as may be nominated by
the Seller as the information vendor, for the purpose of displaying rates
comparable to LIBOR); provided that if any such day is not a London
Banking Day, the LIBOR Rate for such day shall be the LIBOR Rate for the
immediately succeeding London Banking Day. 

     “LIBOR
Rate” means, for any day, the LIBOR rate for deposits in U.S. dollars
for the one month period commencing on such day, as such rates are published on
Telerate page 3750 as of 11:00 a.m., London time on such day (or such other page
as may replace that page on that service, or such other service as may be
nominated by the Seller as the information vendor, for the purpose of displaying
rates comparable to LIBOR); provided that if any such day is not a London
Banking Day, the LIBOR Rate for such day shall be the LIBOR Rate for the
immediately succeeding London Banking Day. 

     “London
Banking Day” means any day on which dealings in U.S. dollar deposits are transacted in
the London interbank market.  

7 

	

     “Maximum
Delivery Shares” means, for any date, 150,000,000 shares of Common Stock, minus the net
number of shares of Common Stock delivered by the Purchaser to the Seller in respect of
this Transaction on or prior to such date, plus the net number of shares of Common Stock
delivered by the Seller to the Purchaser in respect of this Transaction on or prior to
such date, minus the portion of the Maximum Delivery Shares allocated on or prior to such
date to other transactions between the parties pursuant to a provision similar to the
following proviso in any agreement relating to any such other transaction (in each case
subject to appropriate adjustments to the Maximum Delivery Shares in the event of a
Potential Adjustment Event (as such term is defined in the 1996 ISDA Equity Derivatives
Definitions), a Merger Event or any adjustment of the type described in Section 8.02);
provided that the Purchaser may, if the number of Maximum Delivery Shares is insufficient
to permit complete settlement of this Transaction, allocate additional shares of Common
Stock to the Maximum Delivery Shares for this Transaction from the then-applicable
Maximum Delivery Shares (however described), if any, of all other outstanding
transactions (including, without limitation, shares of Common Stock reserved for issuance
upon the exercise of options) relating to shares of Common Stock entered into between the
Purchaser and the Seller on or prior to the date of such allocation, notwithstanding any
provision to the contrary in any agreement relating to any such other transaction, as
determined by the Seller.  

     “Merger
Event” has the meaning set forth in Section 7.01(d). 

     “Nationalization”
has the meaning set forth in Section 7.01(e). 

     “New
York Banking Day” means any day other than a Saturday, a Sunday, a
legal holiday or a day on which banking institutions are authorized or required
by law or regulation to close in The City of New York. 

     “Number
of Shares” has the meaning set forth in Section 1.01. 

     “Obligations”
has the meaning set forth in Section 9.02. 

     “Other
Transactions” means any existing commitments of the Purchaser or any
affiliate (other than this Transaction) with respect to delivery of shares of
Common Stock within the meaning of Paragraph 16 of EITF Issue No. 00-19,
“Determination of Whether Share Settlement is Within Control of the Issuer
for Purposes of Applying Issue No. 96-13” that the Purchaser or any of its
affiliates enters into from time to time, in each case where the Purchaser or
its affiliate has the right to net share settle such transaction or commitment
with shares of Common Stock. 

8 

	

     “Payment
Shares” has the meaning set forth in Section 3.01(b). 

     “Private Placement
Price” means the per share or per unit value of any securities
determined as set forth in Section 3.03(c). 

     “Private
Securities” has the meaning set forth in Section 3.03(a). 

     “Purchase
Date” means any Trading Day during the Contract Period on which the
Seller purchases Common Stock pursuant to Section 4.01(a) or Section 4.01(b). 

     “Purchased
Shares” mean, at any date, the sum of the Daily Share Purchase Amounts
for all Purchase Dates occurring prior to such date. 

     “Purchaser”
has the meaning set forth in the second paragraph hereto. 

     “Purchaser
Adjustment Amount” means an amount equal to (i) the sum of the
Settlement Prices for all Purchase Dates during the Final Adjustment Period,
minus (ii) the Strike Price multiplied by the sum of the Daily Share
Purchase Amounts for all Purchase Dates during the Final Adjustment Period,
plus (iii) the sum of the Excess Borrow Costs for each date during the
Contract Period that is not a Purchase Date. 

     “Rebate
Rate” shall mean, as of any date, the volume weighted average of the
daily interest rates, expressed on a per annum basis, that the Seller or an
affiliate, or counterparty to a hedging transaction with the Seller or such
affiliate, earns on all funds posted as margin or deposited as collateral
against market borrowings of Common Stock on an overnight basis in relation to
this Transaction. For the avoidance of doubt, the Rebate Rate may be a negative
number if such interest rate is zero and an additional fee is paid to the lender
of Common Stock. 

     “Regulation
M” means Regulation M under the Exchange Act. 

     “Registration
Notice Date” has the meaning set forth in Section 3.05. 

     “Registration Threshold”
has the meaning set forth in Section 3.06. 

     “Registration
Trigger Amount” has the meaning set forth in Section 3.06. 

     “Remaining
Shares” means, for any date, a number of shares of Common Stock equal
to the greater of (x) zero and (y) the Number of Shares minus the
Purchased Shares as of the opening of the Exchange on such date. 

9 

	

     “Rule
10b-18” means Rule 10b-18 promulgated under the Exchange Act (or any
successor rule thereto). 

     “SEC”
means the Securities and Exchange Commission. 

     “Securities
Act” means the Securities Act of 1933, as amended. 

     “Seller”
has the meaning set forth in the second paragraph hereto. 

     “Seller
Adjustment Amount” means an amount equal to (i) the Strike Price
multiplied by the sum of the Daily Share Purchase Amounts for all Purchase Dates
during the Final Adjustment Period, minus (ii) the sum of the Settlement
Prices for all Purchase Dates during the Final Adjustment Period, minus
(iii) the sum of the Excess Borrow Costs for each date during the Contract
Period which is not a Purchase Date. 

     “Seller
Payment Share Purchase Period” has the meaning set forth in Section
3.01(d). 

     “Settlement
Date” means, as applicable, the Adjustment Settlement Date or the Final
Settlement Date. 

     “Settlement
Interest” means interest on the applicable Adjustment Amount at a rate
per annum equal to the LIBOR Rate for the applicable Adjustment Date, for the
period from and including the applicable Adjustment Date to but excluding the
applicable Settlement Date or other date when the applicable Adjustment Amount
is paid. 

     “Settlement
Price” means, for any Purchase Date, the total price paid by Seller for
shares of Common Stock purchased pursuant to Section 4.01(a) or Section 4.01(b). 

     “Settlement
Price per Share” means, for any Purchase Date, the Settlement Price for
such Purchase Date, divided by the Daily Share Purchase Amount for such Purchase
Date. 

     “Share
Deficit Notice Date” has the meaning set forth in Section
3.04(a). 

     “Share
De-listing Event” has the meaning set forth in Section 7.01(c). 

     “Shelf Registration
Request” has the meaning set forth in Section 3.06. 

     “Strike
Adjustment Amount” means an amount (which may be positive or negative),
with respect to any Adjustment Date, equal to (i) the sum of the Strike
Adjustment Amount Calculations for each day in the related Adjustment Period,
divided by (ii) the sum of the Daily Share Purchase Amounts for each
Purchase Date occurring during such Adjustment Period. 

10 

	

     “Strike
Adjustment Amount Calculation” means, for any date, the amount (which
may be positive or negative) equal to difference between: 

     (1)
zero, or if such date is a Purchase Date, an amount calculated according to the
following formula: 

	

           (RS x IPP x ((LIBOR - BC - .80%) x FVFI)              -     Int. Adj.
----------------------------------------------------------------
                              360

	

     and
(2) zero, or if such date is the first day on which the Common Stock trades
ex-dividend on the Exchange in respect of a particular dividend payment date
(such day, an “Ex-Dividend Date”), an amount calculated
according to the following formula: 

(RS1x DA x
FVF)  

	

where

         RS           =        the Remaining Shares for the third immediately preceding Trading Day;
provided that if such third day is prior to the Trade Date, RS shall be
equal to zero;

         IPP          =        the Initial Purchase Price;
         BC           =        the Borrow Cost;
         FVFI         =        the Future Value Factor for such day;
         LIBOR        =        the LIBOR Rate for such day;
         Int. Adj.    =        the Interest Adjustment Amount for such day;
         RS1          =        the Remaining Shares on such Ex-Dividend Date;
         DA           =        the dividend amount per share with respect to the dividend related to such
Ex-Dividend Date, except that such amount shall not include the extent to which
dividends are paid to the Purchaser pursuant to Section 8.01; and
         FVF          =        the Future Value Factor for the related dividend
                               payment date.

	

     “Strike
Price” means, with respect to an Interim Settlement Date or the Final
Settlement Date, an amount equal to the sum of (A) the Initial Purchase Price
plus (B) the Strike Adjustment Amount with respect to such Interim Settlement
Date or Final Settlement Date, as the case may be. 

11 

	

     “Successor
Exchange” has the meaning set forth in Section 7.01(c). 

     “Termination
Amount” has the meaning set forth in Section 7.03. 

     “Termination Price”
means the value of an Alternative Termination Delivery Unit to the Seller
(determined as provided in Section 3.03). 

     “Termination
Settlement Date” has the meaning set forth in Section 7.03. 

     “Trade
Date” has the meaning set forth in Section 1.01. 

     “Trading
Day” means any day (i) other than a Saturday, a Sunday or a day on
which the Exchange is not open for business, (ii) during which trading of any
securities of the Purchaser on any national securities exchange has not been
suspended and (iii) during which there has not been, in the Seller’s
judgment, a material limitation in the trading of Common Stock or any options
contract or futures contract related to the Common Stock. 

     “Transaction”
has the meaning set forth in the first paragraph hereto. 

ARTICLE 3
ADJUSTMENT
OF INITIAL PURCHASE PRICE 

     Section
3.01. Purchase Price Adjustment. (a) On the Final Settlement Date,  

	 	
          (i)     if
the Purchaser Adjustment Amount is greater than zero, as an adjustment to the Initial
Purchase Price, the Purchaser shall pay to the Seller the Purchaser Adjustment Amount
plus Settlement Interest in the manner provided in clause (b) of this Section 3.01; and 

	 	
          (ii)     if
the Seller Adjustment Amount is greater than zero, as an adjustment to the Initial
Purchase Price, the Seller shall pay to the Purchaser the Seller Adjustment Amount in the
manner provided in clause (c) of this Section 3.01. 

	 	
(b)

	 	
          (i)     Payment
of the Purchaser Adjustment Amount, if any, plus Settlement Interest shall be in cash or
validly issued shares of Common Stock (“Payment Shares”), as the
Purchaser shall elect, which binding election shall be made at least five scheduled
Trading Days prior to the Expiration Date and communicated to the Seller in writing; provided that
the Purchaser shall not have the right to elect payment in Payment Shares unless (A) the
representations and warranties made by Purchaser to the Seller in Section 5.01 (including
without limitation, the representation and warranty in clause (b) thereof) are true and
correct as of the date the Seller makes such election, as if made on such date, and (B)
the Purchaser has not taken any action that would make unavailable (x) the exemption set
forth in Section 4(2) of the Securities Act, for the sale of any Payment Shares by the
Purchaser to the Seller or (y) an exemption from the registration requirements of the
Securities Act reasonably acceptable to the Seller for resales of Payment Shares by the
Seller. If the Purchaser fails to make such election prior to such day, it shall be
deemed to have elected settlement in cash. 

	

12 

	

	 	
          (ii)     Notwithstanding
any election by the Purchaser to make payment in Payment Shares, at any time prior to the
time the Seller (or any affiliate of Seller) has contracted to resell such Payment
Shares, the Purchaser may deliver in lieu of such Payment Shares an amount in cash equal
to the Purchaser Adjustment Amount plus Settlement Interest, in the manner set forth in
Section 3.01(e). 

	 	
          (iii)     If
the Purchaser elects to pay any Purchaser Adjustment Amount in Payment Shares, then on
the Final Settlement Date, the Purchaser shall deliver to the Seller a number of Payment
Shares equal to the quotient of (A) Purchaser Adjustment Amount plus Settlement Interest
divided by (B) the Private Placement Price (determined in accordance with Section
3.03(c)); provided that Purchaser shall not be required to deliver Payment Shares
in excess of the number of Maximum Delivery Shares except to the extent that the
Purchaser has at such time authorized but unissued shares of Common Stock not reserved
for Other Transactions. 

	

     (c)
Payment of the Seller Adjustment Amount, if any, shall be in cash or Payment Shares, as
the Purchaser shall elect, which such binding election shall be made at least five
Trading Days prior to the Expiration Date and communicated to the Seller in writing. If
the Purchaser fails to make such election prior to such day, it shall be deemed to have
elected settlement in cash.  

     (d) If
the Purchaser elects to receive the Seller Adjustment Amount in Payment Shares then (x)
the Seller shall, beginning on the first Trading Day following the Expiration Date and
ending when the Seller shall have satisfied its obligations under this clause (the “Seller
Payment Share Purchase Period”), purchase (subject to the provisions of Section
4.01(d) and Section 4.02 hereof) shares of Common Stock with an aggregate value (which
such value shall be determined by the prices at which the Seller purchases such shares
plus a commission of $.04 per share) equal to the Seller Adjustment Amount and (y) the
Seller shall deliver such shares of Common Stock to the Purchaser on the settlement dates
relating to such purchases.  

13 

	

     (e) If
the Purchaser elects to receive the Seller Adjustment Amount in cash or to pay the
Purchaser Adjustment Amount in cash, then payment of the Purchaser Adjustment Amount plus
Settlement Interest shall be made by wire transfer of immediately available U.S. dollar
funds on the Final Settlement Date.  

     Section
3.02. Interim Purchase Price Adjustment. (a)If on any date the Interim
Adjustment Trigger is equal to or greater than 3% of the total number of shares of Common
Stock outstanding on such date, then at any time after such date, the Seller shall have
the right to declare any scheduled Trading Day to be an “Interim Adjustment Date” upon
notice to the Purchaser.  

     (b) 

	 	
          (i)     On
any Adjustment Settlement Date, the Purchaser shall pay the corresponding Interim
Adjustment Amount plus Settlement Interest in either cash or Payment Shares, as the
Purchaser shall elect, which binding election shall be made no later than the Trading Day
following the Interim Adjustment Date and communicated to the Seller in writing; provided that
the Purchaser shall not have the right to elect payment in Payment Shares unless (A) the
representations and warranties made by Purchaser to the Seller in Section 5.01 (including
without limitation, the representation and warranty in clause (b) thereof) are true and
correct as of the date the Seller makes such election, as if made on such date, and (B)
the Purchaser has not taken any action that would make unavailable (x) the exemption set
forth in Section 4(2) of the Securities Act, for the sale of any Payment Shares by the
Purchaser to the Seller or (y) an exemption from the registration requirements of the
Securities Act reasonably acceptable to the Seller for resales of Payment Shares by the
Seller. If the Purchaser fails to make such election prior to such day, it shall be
deemed to have elected settlement in cash. 

	 	
          (ii)     Notwithstanding
any election by the Purchaser to make payment in Payment Shares, at any time prior to the
time the Seller (or any affiliate of Seller) has contracted to resell such Payment
Shares, the Purchaser may deliver in lieu of such Payment Shares an amount in cash equal
to the Interim Adjustment Amount plus Settlement Interest. 

	 	
          (iii)     If
the Purchaser elects to pay any Interim Adjustment Amount in Payment Shares, then on the
Adjustment Settlement Date, the Purchaser shall deliver to the Seller a number of Payment
Shares equal to the quotient of (A) such Interim Adjustment Amount plus Settlement
Interest divided by (B) the Private Placement Price (determined in accordance with
Section 3.03(c)); provided that Purchaser shall not be required to deliver Payment
Shares in excess of the number of Maximum Delivery Shares, except to the extent that the
Purchaser has at such time authorized but unissued shares of Common Stock not reserved
for Other Transactions. 

	

14 

	

     (c) If
the Purchaser elects to pay the Interim Adjustment Amount in cash, payment of such
Interim Adjustment Amount plus Settlement Interest shall be made by wire transfer of
immediately available U.S. dollar funds on the Adjustment Settlement Date.  

     Section
3.03. Determination of Private Placement Price, Payment Shares and Alternative
Termination Delivery Units. If Purchaser elects to deliver Payment Shares pursuant to
Section 3.01(b) or 3.02(b) or Alternative Termination Delivery Units pursuant to Section
7.02(a), promptly following the relevant Interim Adjustment Date, the Expiration Date or
the Early Termination Date, as the case may be:  

     (a)
The Purchaser shall afford the Seller, and any potential buyers of the Payment Shares
(or, in the case of alternative termination settlement, Alternative Termination Delivery
Units) (collectively, the “Private Securities”) designated by the Seller
a reasonable opportunity to conduct a due diligence investigation with respect to the
Purchaser customary in scope for private offerings of such type of securities (including,
without limitation, the availability of senior management to respond to questions
regarding the business and financial condition of the Purchaser and the right to have
made available to them for inspection all financial and other records, pertinent
corporate documents and other information reasonably requested by them), and the Seller
(or any such potential buyer) shall be satisfied in all material respects with the
results of such due diligence investigation of the Purchaser.  

     (b)
The Purchaser shall enter into an agreement (a “Private Placement Agreement”)
with the Seller (or any affiliate of the Seller designated by the Seller) providing for
the purchase and resale by the Seller (or such affiliate) in a private placement (or
other transaction exempt from registration under the Securities Act) of the Private
Securities, which agreement shall be on commercially reasonable terms and in form and
substance reasonably satisfactory to the Seller (or such affiliate), and (without
limitation of the foregoing) shall:  

					(i)  		contain
customary conditions, and customary undertakings, representations and warranties (to the
Seller or such affiliate, and if requested by the Seller or such affiliate, to potential
purchasers of the Private Securities);  

					 		 

					(ii)  		contain
indemnification and contribution provisions in connection with the potential liability of
the Seller and its affiliates relating to the resale by the Seller (or such affiliate) of
the Private Securities; 

	

15 

	

					(iii)  		provide
for the delivery of related certificates and representations, warranties and agreements
of the Purchaser, including those necessary or advisable to establish and maintain the
availability of an exemption from the registration requirements of the Securities Act for
resales of the Private Securities by the Seller (or such affiliate); 

					(iv)  		provide
for the delivery to the Seller (or such affiliate) of customary opinions (including,
without limitation, opinions relating to the due authorization, valid issuance and fully
paid and non-assessable nature of the Private Securities, the availability of an
exemption from the Securities Act for resales of the Private Securities by the Seller (or
such affiliate), and the lack of material misstatements and omissions in the Purchaser's
filings under the Exchange Act); and 

					(v)  		provide
for the payment by the Purchaser of all fees and expenses in connection with such sale
and resale, including all fees and expenses of counsel for the Seller or such affiliate. 

	

     (c)
The Seller shall determine the Private Placement Price (or, in the case of alternative
termination settlement, the Termination Price) in its discretion by commercially
reasonable means, which may include (without limitation):  

					(i)  		basing
such price on indicative bids from investors, 

					(ii)  		taking
into account any factors that are customary in pricing private sales and any and all
risks and costs in connection with the resale of the Private Securities by the Seller (or
any affiliate of the Seller designated by the Seller), including, without limitation, a
reasonable placement fee or spread to be retained by the Seller (or such affiliate); and 

					(iii)  		in
the case of alternative termination settlement, adding to such price interest on the
Termination Amount, as the case may be, at a per annum rate equal to the LIBOR rate for
the date the Private Placement Price is determined plus 200 basis points, for the period
from and including the Early Termination Date to but excluding the Termination Settlement
Date. 

	

     (d)
The Seller shall notify the Purchaser of the number of Private Securities required to be
delivered by the Seller and the Private Placement Price (or, in the case of alternative
termination settlement, the Termination Price) by 6:00 p.m. on the day such price is
determined.  

	

16 

	

     (e)
The Purchaser agrees not to take or cause to be taken any action that would make
unavailable either (i) the exemption set forth in Section 4(2) of the Securities Act, for
the sale of any Private Securities by the Purchaser to the Seller or (ii) an exemption
from the registration requirements of the Securities Act reasonably acceptable to the
Seller for resales of Private Securities by the Seller.  

     (f)
The Purchaser expressly agrees and acknowledges that the public disclosure of all
material information relating to the Purchaser is within the Purchaser’s control and
that the Purchaser shall promptly so disclose all such information during the period from
and including any Adjustment Date to and including the corresponding Extended Settlement
Date.  

     Section
3.04 Continuing Obligation To Deliver Shares. If a Deficit Amount exists at any
time, the Purchaser shall, to the extent that the Purchaser has at such time authorized
but unissued shares of Common Stock not reserved for Other Transactions, promptly notify
the Seller thereof (the date of such notice, a “Share Deficit Notice Date”)
and shall deliver to the Purchaser a number of shares of Common Stock (“Deficit Shares”)
equal to the quotient of (i) the Deficit Amount divided by (ii) the per share value
of the Deficit Shares (determined as provided below); provided that the Purchaser
may, at its election, pay any Deficit Amount to the Seller (or any affiliate of the
Seller designated by the Seller) in cash.  

     (b) If
the Purchaser delivers Deficit Shares pursuant to Section 3.04(a), the provisions of
Section 3.03 shall apply, mutatis mutandis, except that:  

	 	
          (i)     each
reference to “Interim Adjustment Date”, “Adjustment Date”and “Early
Termination Date”, as applicable, shall be deemed to be a reference to “Share
Deficit Notice Date”; 

	 	
          (ii)     
the definition of “Private Securities” shall be deemed to include the “Deficit Shares”; 

	 	
          (iii)     each
reference to “Extended Settlement Date”or “Termination Settlement Date” shall
be deemed to be a reference to “Deficit Share Delivery Date”; 

	 	
          (iv)     
each reference to “Adjustment Amount” or “Termination Amount” shall be deemed to be a
reference to “Deficit Amount”; and 

	 	
          (v)     
each reference to “Private Placement Price” shall be deemed to be a reference to “the
value of the Deficit Shares”. 

	

17 

	

     (c) On
each Deficit Share Delivery Date, the Purchaser shall deliver to the Seller the Deficit
Shares for such Deficit Share Delivery Date. 

     (d)
The Purchaser agrees to use its best efforts to cause the number of authorized but
unissued shares of Common Stock to be increased to an amount sufficient to permit the
Purchaser to fulfill its obligations under this Section 3.04.  

     Section
3.05. Registration Option. Notwithstanding anything to the contrary in this
Agreement, if the Purchaser elects to deliver Payment Shares pursuant to Section 3.01(b)
or 3.02(b), Deficit Shares pursuant to Section 3.04(a) or Alternative Termination Units
pursuant to Section 7.02(a), the Seller shall have the right to require the Purchaser to
use its best efforts to comply with the Registration Procedures set forth in Exhibit B by
delivery of written notice to the Purchaser at any time following the date of delivery of
the Purchaser’s election to deliver Payment Shares or Alternative Termination
Delivery Units (the date of delivery of such notice by the Seller, the “Registration
Notice Date”).  

     Section
3.06. Registration Statement Trigger. If on any date the Interim Adjustment
Trigger is equal to or greater than 2% of the total number of shares of Common Stock
outstanding on such date (the “Registration Threshold”), the Seller
shall have the right to request (the “Shelf Registration Request”) that
the Purchaser (and upon such request the Purchaser shall) use its best efforts to, as
promptly as possible, file a Registration Statement (as defined in clause (b) of Exhibit
B) for an offering, to be made on a continuous basis pursuant to Rule 415 (or any similar
or successor rule), if available, under the Securities Act, covering the public resale by
the Seller of Registered Securities (as defined in clause (b) of Exhibit B); provided
 that no such filing shall be required pursuant to this Section 3.06 if the Purchaser
shall have filed a similar registration statement with unused capacity at least equal to
the Registration Trigger Amount, and such registration statement has been declared by the
SEC on or prior to the date the Shelf Registration Request is made and no stop order is
in effect with respect to such registration statement as of the date the Shelf
Registration Request is made. Such Registration Statement shall cover the sale of Common
Stock in an amount at least equal to 200% of the Interim Adjustment Amount used in the
calculation of the Interim Adjustment Trigger on the date the Interim Adjustment Trigger
equals or exceeds the Registration Threshold (the “Registration Trigger Amount”).
The Purchaser shall use its best efforts to cause such Registration Statement to be
declared effective by the SEC as promptly as possible.  

ARTICLE 4
MARKET
PURCHASES 

     Section
4.01. Purchases By The Seller. From time to time during the Discretionary
Purchase Period, the Seller shall purchase, in its discretion and subject to Section
4.02, shares of Common Stock, not to exceed, in the aggregate, the Number of Shares.  

18 

	

     (b) If
the aggregate number of shares of Common Stock purchased by the Seller pursuant to
Section 4.01(a) during the Discretionary Purchase Period is less than the Number of
Shares, then on each Trading Day during the Averaging Period, the Seller shall, subject
to Section 4.02, use its reasonable efforts to purchase a number of shares of Common
Stock at least equal to 50% of the number of shares of Common Stock that could be
purchased (exclusive of block purchases) on such Trading Day by or for the Purchaser of
an Affiliated Purchaser pursuant to the limitations imposed by clauses (b)(2), (b)(3),
(b)(4) and (c) of Rule 10b-18; provided that the number of shares of Common Stock
purchased on any Trading Day shall not exceed the Remaining Shares.  

     (c)
Promptly following each week during the Contract Period, the Seller shall notify the
Purchaser of the Daily Share Purchase Amount and the Settlement Price for each Purchase
Date during the previous five Trading Days.  

     (d) It
is understood that during the Contract Period and during any Seller Payment Share
Purchase Period, the Seller will purchase shares of Common Stock pursuant to this
Agreement. The timing of such purchases by the Seller, the price paid per share of Common
Stock pursuant to such purchases and the manner in which such purchases are made,
including without limitation whether such purchases are made on any securities exchange
or privately, shall be within the discretion of the Seller. The Seller and the Purchaser
each agree that the Seller shall use reasonable efforts to make all purchases of Common
Stock in a manner that would comply with the limitations set forth in clauses (b)(2),
(b)(3), (b)(4) and (c) of Rule 10b-18 as if such rule were applicable to such purchases.
For this reason, the Purchaser shall, at least one day prior to the first day of the
Contract Period, notify the Seller of the total number of shares of Common Stock
purchased in Rule 10b-18 purchases of blocks by or for the Purchaser or any of its
Affiliated Purchasers during each of the four calendar weeks preceding such day (“Rule
10b-18 purchase” and “blocks” each being used as defined in Rule
10b-18), which notice shall be substantially in the form set forth as Exhibit A hereto.  

     Section
4.02. Suspension Of Purchases. If the Seller, in its discretion, determines
that it is appropriate with regard to any legal, regulatory or self-regulatory
requirements or related policies and procedures (whether or not such requirements,
policies or procedures are imposed by law or have been voluntarily adopted by the Seller)
for the Seller to refrain from purchasing Common Stock on any Trading Day during (i) the
Contract Period or (ii) any Seller Payment Share Purchase Period, the Seller shall not
purchase Common Stock hereunder on such Trading Day. If such Trading Day is during (i)
the Averaging Period or (ii) any Seller Payment Share Purchase Period, the Seller shall
notify the Purchaser upon the exercise of the Seller’s rights pursuant to this
Section 4.01(a) and shall subsequently notify the Purchaser on the day the Seller
believes that the Seller may resume purchasing Common Stock. The Seller shall not
communicate to the Purchaser the reason for the Seller’s exercise of its rights
pursuant to this Section 4.01(a).  

19 

	

     (b) If
the Purchaser shall have elected to deliver Payment Shares pursuant to Section 3.02(b),
the Seller shall refrain from purchasing Common Stock in connection with this Transaction
during the period from and including the date the Purchaser makes such election to and
including the Adjustment Settlement Date.  

     (c)
Prior to the opening of trading on the Exchange on any Trading Day, the Purchaser may, by
telephonic notice (which telephonic notice shall be followed immediately by written
notice) to the Seller, designate a number of consecutive Trading Days as a “Blackout
Period.” The Purchaser agrees to provide such notice whenever the Purchaser comes
in possession of any material nonpublic information regarding the Purchaser. Any notice
provided under this Section 4.02(c) shall not specify, and the Purchaser shall not
otherwise communicate to the Seller, the reason for the Purchaser’s declaration of a
Blackout Period. Upon receipt of notice of the commencement of any Blackout Period,
Seller shall immediately cease making any purchases of Common Stock in connection with
this Transaction until the Blackout Period has ended, and the Seller’s obligations
to purchase Common Stock pursuant to Section 4.01(b) or to deliver Common Stock with
respect to a settlement hereunder shall be suspended during the duration of such Blackout
Period. The Purchaser may designate no more than two Blackout Periods and the aggregate
number of days of all Blackout Periods designated pursuant to this Section shall not
exceed five Trading Days. The Purchaser agrees that for every Trading Day during the
Contract Period, other than a Trading Day during a Blackout Period designated pursuant to
this Section 4.01(c), the representation and warranty made by the Purchaser to the Seller
in Section 6(b) shall be true and correct on each such Trading Day, as if made on such
Trading Day.  

     (d)
The Purchaser agrees that neither the Purchaser nor any of its affiliates or agents shall
make any distribution (as defined in Regulation M) of Common Stock, or any security for
which the Common Stock is a reference security (as defined in Regulation M), on any
Trading Day during the Contract Period or any Seller Payment Share Purchase Period.  

     (e)
If, as set forth in this Section 4.02, there is a suspension of a day on which the Seller
is obligated to make purchases or deliveries of stock in settlement of this Transaction,
the Seller shall make appropriate adjustments to the terms of this Transaction as it
deems commercially reasonable, in its sole discretion.  

     Section
4.03. Purchases Of Common Stock By The Purchaser. The Purchaser shall not, and
shall cause its affiliates and affiliated purchasers (each as defined in Rule 10b-18) not
to, directly or indirectly (including by means of a derivative instrument) enter into any
transaction to purchase any shares of Common Stock during the Contract Period and
thereafter until all payments or deliveries of shares of Common Stock pursuant to Section
3.01 above or Section 7.02 below have been made.  

20 

	

ARTICLE 5

REPRESENTATIONS, WARRANTIES AND AGREEMENTS 

     Section
5.01. Representations, Warranties And Agreements Of The Purchaser. The Purchaser
represents and warrants to, and agrees with, the Seller that:  

     (a) Solvency.
(i) The assets of the Purchaser at their fair valuation exceed the liabilities of the
Purchaser, including contingent liabilities; (ii) the capital of the Purchaser is
adequate to conduct the business of the Purchaser; and (iii) to the best of its
knowledge, the Purchaser has the ability to pay its debts and obligations as such debts
mature and does not intend to, or believes that it will, incur debt beyond its ability to
pay as such debts mature.  

     (b) Disclosure.
On the date hereof, the reports and other documents filed by the Purchaser with the
Commission pursuant to the Exchange Act when considered as a whole (with the more recent
such reports and documents deemed to amend inconsistent statements contained in any
earlier such reports and documents), do not contain any untrue statement of a material
fact or any omission of a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances in which they were made,
not misleading. The Purchaser is not, as of the date hereof, in possession of any
material nonpublic information regarding the Purchaser.  

     (c) Nature
of Shares Delivered. Any shares of Common Stock or Alternative Termination Delivery
Units delivered to the Seller pursuant to this Agreement, when delivered, shall have been
duly authorized and shall be duly and validly issued, fully paid and nonassessable and
free of preemptive or similar rights, and such delivery shall pass title thereto free and
clear of any liens or encumbrances.  

     (d) No
Facilitation of Distribution. The Purchaser is not entering into this Confirmation to
facilitate a distribution of the Common Stock (or any security convertible into or
exchangeable for Common Stock) or in connection with a future issuance of securities.  

     (e) No
Manipulation. The Purchaser is not entering into this Confirmation to create actual
or apparent trading activity in the Common Stock (or any security convertible into or
exchangeable for Common Stock) or to manipulate the price of the Common Stock (or any
security convertible into or exchangeable for Common Stock).  

21 

	

     (f)
Required Filings. Purchaser has made and will make all required filings with the SEC, any
securities exchange or any other regulatory body with respect to the Transaction
contemplated hereby.  

     (g)
Regulation M. The Purchaser is not on the date hereof engaged in a distribution, as such
term is used in Regulation M.  

     (h) Board
Authorization. The Purchaser is entering into this Transaction in connection with its
share repurchase program, which was approved by its board of directors and publicly
announced, solely for the purposes stated in such board resolution and public disclosure.
There is no internal policy of the Purchaser, whether written or oral, that would
prohibit the Purchaser from entering into any aspect of this Transaction, including, but
not limited to, the purchases of shares of Common Stock to be made pursuant hereto.  

     SECTION
5.02. Additional Representations, Warranties And Agreements. The Purchaser and Seller
represent and warrant to, and agree with, each other that:  

     (a)
Agency. Each party acknowledges that J.P. Morgan Securities Inc. has acted as agent on
behalf of the Seller in effecting this Transaction. Each party acknowledges that J.P.
Morgan Securities Inc. shall have no liability to either party under this Agreement.  

     (b) Non-Reliance.
Each party has entered into this Transaction solely in reliance on its own judgment.
Neither party has any fiduciary obligation to the other party relating to this
Transaction. In addition, neither party has held itself out as advising, or has held out
any of its employees or agents as having the authority to advise, the other party as to
whether or not the other party should enter into this Transaction, any subsequent actions
relating to this Transaction or any other matters relating to this Transaction. Neither
party shall have any responsibility or liability whatsoever in respect of any advice of
this nature given, or views expressed, by it or any such persons to the other party
relating to this Transaction, whether or not such advice is given or such views are
expressed at the request of the other party. Purchaser has conducted its own analysis of
the legal, accounting, tax and other implications of this Transaction and consulted such
advisors, accountants and counsel as it has deemed necessary.  

ARTICLE 6
ADDITIONAL
COVENANTS 

     Section
6.01. Purchaser’s Further Assurances. The Purchaser hereby agrees with the
Seller that the Purchaser shall cooperate with the Seller, and execute and deliver, or
use its best efforts to cause to be executed and delivered, all such other instruments,
and to obtain all consents, approvals or authorizations of any person, and take all such
other actions as the Seller may reasonably request from time to time, consistent with the
terms of this Confirmation, in order to effectuate the purposes of this Confirmation and
the Transaction contemplated hereby.  

22 

	

     Section
6.02. Seller’s Further Assurances. The Seller hereby agrees with the
Purchaser that the Seller shall cooperate with the Purchaser, and execute and deliver, or
use its best efforts to cause to be executed and delivered, all such other instruments,
and to obtain all consents, approvals or authorizations of any person, and take all such
other actions as the Purchaser may reasonably request from time to time, consistent with
the terms of this Confirmation, in order to effectuate the purposes of this Confirmation
and the Transaction contemplated hereby.  

     Section
6.03. Maximum Deliverable Number Of Shares Of Common Stock. The Purchaser
shall not permit the sum of (i) the number of Maximum Delivery Shares plus (ii) the
aggregate maximum share amounts for all Other Transactions plus (iii) the aggregate
number of shares expressly reserved for any other use (including, without limitation,
shares of Common Stock reserved for issuance upon the exercise of options or convertible
debt), in each case whether expressed as caps or as numbers of shares reserved or
otherwise, to exceed at any time the number of authorized but unissued shares of Common
Stock.  

ARTICLE 7
TERMINATION 

     Section
7.01. Additional Termination Events. (a) An Additional Termination Event shall
occur in respect of which the Purchaser is the sole Affected Party and this Transaction
is the sole Affected Transaction if, on any day, Seller determines, in its sole
discretion, that it is unable or it is impracticable to establish or maintain a hedge of
its position in respect of the Transaction (including, without limitation, any hedging
transaction that may be unwound or the cost of which to Seller may increase because Seller’s
counterparty determines that it is impracticable to establish or maintain a hedge of its
position in respect of its hedging transaction with Seller).  

     (b) An
Additional Termination Event shall occur in respect of which the Purchaser is the sole
Affected Party and this Transaction is the sole Affected Transaction if (i) a Share
De-listing Event occurs; (ii) a Merger Event occurs; (iii) the Closing Price shall be
equal to or less than $20; (iv) the rating accorded the Purchaser’s long-term
unsecured and unsubordinated indebtedness is downgraded to or below BB+ by Standard & Poor’s
Rating Group (“S&P”) or to or below Ba1 by Moody’s Investor
Services, Inc. (“Moody’s”), or either S&P or Moody’s
ceases to rate such indebtedness; or (v) a Nationalization occurs.  

     (c) A
“ Share De-listing Event” means that at any time during the period from
and including the Trade Date to and including the later of the Final Settlement Date or
the Extended Settlement Date, the Common Stock ceases to be listed on the Exchange for
any reason (other than a Merger Event) and are not immediately re-listed, as of the date
of such de-listing, on another U.S. national securities exchange (a “Successor
Exchange”), provided that it shall not constitute an Additional
Termination Event if the Common Stock is immediately re-listed on a Successor Exchange
upon its de-listing from the Exchange, and the Successor Exchange shall be deemed to be
the Exchange for all purposes. In addition, in such event, the Seller shall make any
adjustments it deems necessary to the terms of the Transaction.  

23 

	

     (d) A
“Merger Event” means the public announcement (by the Purchaser or
otherwise) at any time during the period commencing on the Trade Date and ending on the
Expiration Date of any (i) planned reclassification or change of the Common Stock that
will, if consummated, result in a transfer of more than 20% of the outstanding shares of
Common Stock, (ii) planned consolidation, amalgamation or merger of the Purchaser with or
into another entity (other than a consolidation, amalgamation or merger in which the
Purchaser will be the continuing entity and which does not result in any such
reclassification or change of more than 20% of such shares outstanding), (iii) other
takeover offer for the shares of Common Stock that is aimed at resulting in a transfer of
more than 20% of such shares of Common Stock (other than such shares owned or controlled
by the offeror) or (iv) irrevocable commitment to any of the foregoing.  

     (e) A
“Nationalization” means that all or substantially all of the outstanding
shares of Common Stock or assets of the Purchaser are nationalized, expropriated or are
otherwise required to be transferred to any governmental agency, authority or entity.  

     Section
7.02. Consequences Of Additional Termination Events. (a) In the event of the
occurrence or effective designation of an Early Termination Event under the Agreement,
cash settlement, as set forth in Section 7.02(b), shall apply; provided that if
the Termination Amount is payable by the Purchaser, the Purchaser may elect (which
election shall be binding) to have alternative termination settlement, as described in
Section 7.03, apply by delivery of written notice to the Seller on the Trading Day
immediately following the Purchaser’s receipt of a notice (as required by Section
6(d) of the Agreement following the designation of an Early Termination Date in respect
of this Transaction or in respect of all transactions under the Agreement) setting forth
the amounts payable by the Purchaser with respect to such Early Termination Date (the
date of such delivery, the “Default Notice Day”) ; provided that
the Purchaser shall not have the right to elect alternative termination settlement unless
(A) the representations and warranties made by Purchaser to the Seller in Section 5.01
(including without limitation, the representation and warranty in clause (b) thereof) are
true and correct as of the date the Seller makes such election, as if made on such date,
and (B) the Purchaser has not taken any action that would make unavailable (x) the
exemption set forth in Section 4(2) of the Securities Act, for the sale of any
Alternative Termination Delivery Units by the Purchaser to the Seller or (y) an exemption
from the registration requirements of the Securities Act reasonably acceptable to the
Seller for resales of Alternative Termination Delivery Units by the Seller.
Notwithstanding the foregoing, at any time prior to the time the Seller (or any affiliate
of Seller) has contracted to resell the property to be delivered upon alternative
termination settlement, the Purchaser may deliver in lieu of such property an amount in
cash equal to the Termination Amount in the manner set forth in Section 6(d) of the
Agreement.  

24 

	

     (b) If
cash settlement applies in respect of an Early Termination Date, Section 6 of the
Agreement shall apply and notwithstanding any election made to the contrary in the
Agreement, “Loss” (as such term is defined in the Agreement) shall apply.  

     Section
7.03. Alternative Termination Settlement. If the Purchaser elects alternative
termination settlement in respect of an Early Termination Date, in lieu of payment of the
amount payable in respect of this Transaction pursuant to Section 6(d)(ii) of the
Agreement (the “Termination Amount”), the Purchaser shall, as soon as
directed by the Seller after the Default Notice Day, deliver to the Seller a number of
Alternative Termination Delivery Units equal to the quotient of (A) the Termination
Amount divided by (B) the Termination Price; providedthat if such quotient exceeds
the number of Maximum Delivery Shares, the number of shares of Common Stock or other
securities comprising the aggregate Alternative Termination Delivery Units shall be equal
to the number of Maximum Delivery Shares, except to the extent that the Purchaser has at
such time authorized but unissued shares of Common Stock not reserved for Other
Transactions; and provided further that if the Seller notifies the Purchaser that
delivery of the Alternative Termination Delivery Units would, in the reasonable judgment
of counsel for the Seller, present legal or regulatory issues for the Seller that would
not arise in connection with the delivery of a lesser number of Alternative Termination
Delivery Units, the Alternative Termination Delivery Units shall be delivered over time,
on dates and in amounts that will not, in the reasonable judgment of counsel for the
Seller, present such issues.  

     Section
7.04. Notice Of Default. If an Event of Default occurs in respect of the
Purchaser, the Purchaser will, promptly upon becoming aware of it, notify the Seller
specifying the nature of such Event of Default.  

ARTICLE 8
ADJUSTMENTS 

     Section
8.01. Extraordinary Cash Dividends. In the event the Purchaser declares an
extraordinary cash dividend during the Contract Period, on the ex-dividend date for such
extraordinary cash dividend the Purchaser shall pay the Seller an amount equal to the
product of (i) the per-share amount of such extraordinary cash dividend multiplied by
(ii) the Remaining Shares as of such ex-dividend date.  

25 

	

     Section
8.02. Other Dilution Adjustments. In the event of any corporate event
involving the Purchaser or the Common Stock not specifically addressed in Section 8.01 or
Section 7.01(d) above (including, without limitation, a spin-off, a stock split, stock
dividend, bankruptcy, insolvency, reorganization, rights offering or recapitalization) or
in the event that the Seller, in its good faith judgment, determines that the adjustments
described in Section 8.01 and Section 7.01(d) above will not result in an equitable
adjustment of the terms of the Transaction described herein, the terms of the Transaction
(including, without limitation, the Initial Purchase Price and the Strike Price)
described herein shall be subject to adjustment by the Seller as in the exercise of its
good faith judgment it deems appropriate under the circumstances.  

ARTICLE 9
 MISCELLANEOUS 

     Section
9.01. Successors And Assigns.All covenants and agreements in this Confirmation
made by or on behalf of either of the parties hereto shall bind and inure to the benefit
of the respective successors and assigns of the parties hereto whether so expressed or
not.  

     Section
9.02. Purchaser Indemnification. (a) Purchaser (the “Indemnifying Party”)
agrees to indemnify and hold harmless Seller and its officers, directors, employees,
affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”)
from and against any and all losses, claims, damages and liabilities, joint or several
(collectively, “Obligations”), to which an Indemnified Person may become
subject arising out of or in connection with this Confirmation or any claim, litigation,
investigation or proceeding relating thereto, regardless of whether any of such
Indemnified Person is a party thereto, and to reimburse, within 30 days, upon written
request, each such Indemnified Person for any reasonable legal or other expenses incurred
in connection with investigating, preparation for, providing evidence for or defending
any of the foregoing, provided, however, that the Indemnifying Party shall not
have any liability to any Indemnified Person to the extent that such Obligations (i) are
finally determined by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnified Person (and in such case, such
Indemnified Person shall promptly return to the Indemnifying Party any amounts previously
expended by the Indemnifying Party hereunder) or (ii) are trading losses incurred by the
Seller as part of its purchases or sales of shares of Common Stock pursuant to this
Confirmation (unless the Purchaser has breached any agreement, term or covenant herein).  

26 

	

     (b) In
case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to this Section
9.02, the Indemnified Person shall promptly notify the Indemnifying Party in writing and
the Indemnifying Party, upon request of the Indemnified Person, shall retain counsel
satisfactory to the Indemnified Person to represent the Indemnified Person and any others
the Indemnifying Party may designate in such proceeding and shall pay the fees and
disbursements of such counsel related to such proceeding. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Person unless (i)
the Indemnifying Party and the Indemnified Person shall have mutually agreed to the
retention of such counsel or (ii) the named parties to any such proceeding (including any
impleaded parties) include both the Indemnifying Party and the Indemnified Person and
representation of both parties by the same counsel would be inappropriate due to actual
or potential differing interests between them. It is understood that the Indemnifying
Party shall not, in respect of the legal expenses of any Indemnified Person in connection
with any proceeding or related proceedings in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm (in addition to any local counsel) for
all such Indemnified Persons and that all such fees and expenses shall be reimbursed as
they are incurred. Such firm shall be designated in writing by the Seller. The
Indemnifying Party 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, the Indemnifying Party agrees to indemnify the Indemnified
Person from and against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have
requested an Indemnifying Party to reimburse the Indemnified Person for fees and expenses
of counsel as contemplated by the second and third sentences of this paragraph, the
Indemnifying Party agrees that it shall be liable for any settlement of any proceeding
effected without its written consent if (x) such settlement is entered into more than 30
days after receipt by such Indemnifying Party of the aforesaid request and (y) such
Indemnifying Party shall not have reimbursed the Indemnified Person in accordance with
such request prior to the date of such settlement. No Indemnifying Party shall, without
the prior written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could have been
a party and indemnity could have been sought hereunder by such Indemnified Person, unless
such settlement includes an unconditional release of such Indemnified Person from all
liability on claims that are the subject matter of such proceeding.  

     Section
9.03. Assignment And Transfer. Notwithstanding the Agreement, Seller may
assign (i) any of its rights or duties hereunder to any one or more of its affiliates or
(ii) the right to receive Payment Shares to any third party, without the prior written
consent of the Purchaser.  

27 

	

     Section
9.04 Non-confidentiality. Seller and Purchaser hereby acknowledge and agree that
each is authorized to disclose every aspect of this Agreement and the transactions
contemplated hereby to any and all persons, without limitation of any kind, and there are
no express or implied agreements, arrangements or understandings to the contrary.  

     Section
9.05. Unenforceability And Invalidity. To the extent permitted by law, the
unenforceability or invalidity of any provision or provisions of this Confirmation shall
not render any other provision or provisions herein contained unenforceable or invalid.  

     Section
9.06. Securities Contract. The parties hereto recognize that the Seller is a
“financial institution” within the meaning of Section 101(22) of Title 11 of the
United States Code (the “Bankruptcy Code”). The parties hereto further
recognize that this Confirmation is a “securities contract,” as such term is
defined in Section 741(7) of the Bankruptcy Code, entitled to the protection of Sections
362(b)(6) and 555 of the Bankruptcy Code.  

     Section
9.07. No Collateral, Netting Or Setoff. Notwithstanding any provision of the
Agreement, or any other agreement between the parties, to the contrary, the obligations
of the Purchaser hereunder are not secured by any collateral. Obligations under this
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 this
Agreement, 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 this
Transaction, whether arising under this Agreement, 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.  

28 

	

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

			Yours sincerely,

J.P. Morgan Securities Inc., as agent for

Morgan Guaranty Trust Company
of New York, London Brance 

			 

By: /s/ Stephen L. Roti
——————————————

Name: Stephen L. Roti
Title: Vice President 

	

Confirmed as of the date

first above written:

Ultramar
Diamond Shamrock Corporation 

	 

By: /s/ Stephen L. Roti
——————————————

Name: Stephen L. Roti
Title: Vice President 

	

EXHIBIT A 

[Letterhead of
Counterparty] 

Morgan Guaranty Trust Company
of New
York
c/o J.P. Morgan Securities Inc.
60 Wall Street, 2nd Floor
New York, New York 10260  

Re:     Accelerated
Purchase of Equity Securities  

Ladies and Gentlemen: 

     In
connection with our entry into the Confirmation dated as of February 8, 2001
(the “Confirmation”) to the ISDA Master Agreement dated as of
November 1, 1996, as amended and supplemented from time to time (the
“Agreement”), we hereby represent that set forth below is the
total number of shares of our common stock purchased by or for us or any of our
affiliated purchasers in Rule 10b-18 purchases of blocks (all defined in Rule
10b-18 under the Securities Exchange Act of 1934) during the four full calendar
weeks immediately preceding the first day of the Contract Period (as defined in
the Agreement). 

     We
understand that you will use this information in calculating trading volume for
purposes of Rule 10b-18. 

			Yours truly yours,

Ultramar Diamond Shamrock Corporation 

			 

By: 
——————————————

Name: 
Title: 

	

A-1 

	

EXHIBIT B 

REGISTRATION
PROCEDURES 

     If
the Seller has elected pursuant to Section 3.05 to require the Purchaser to
comply with the Registration Procedures contained in this Exhibit B with respect
to any Payment Shares, any Deficit Shares or any Alternative Termination
Delivery Units, the following provisions shall apply: 

     (a) On
the later of (i) the third Business Day following the applicable Adjustment Date, Share
Deficit Notice Date or the Default Notice Date, as the case may be, and (ii) the date on
which the Registration Statement is declared effective by the SEC (the “Registered
Share Delivery Date”), the Purchaser shall deliver to the Seller a number of
Payment Shares (or in the case of alternative termination settlement, Alternative
Termination Delivery Units) that will be registered for resale in the manner set forth
below (the “Subject Securities”) equal to the quotient of (A) the
applicable Adjustment Amount or the Termination Amount, as the case may be, divided by
(B) the Closing Price on the Trading Day immediately prior to the applicable Registered
Share Delivery Date or such other number of Subject Securities as Seller may in its good
faith discretion may estimate would have a value approximately equal to the Adjustment
Amount, Deficit Amount or Termination Amount, as the case may be; provided that
Purchaser shall not be required to deliver Subject Securities in excess of the number of
Maximum Delivery Shares, except to the extent that the Purchaser has at such time
authorized but unissued shares of Common Stock not reserved for Other Transactions.  

     (b)
Promptly following the Registration Notice Date, the Purchaser shall file with the SEC a
registration statement (“Registration Statement”) covering the public
resale by the Seller of the Subject Securities, any Make-Whole Securities (as defined
below) and any Deficit Shares (collectively, the “Registered Securities”)
on a continuous or delayed basis pursuant to Rule 415 (or any similar or successor rule),
if available, under the Securities Act; provided that no such filing shall be
required pursuant to this paragraph (b) if the Purchaser shall have filed a similar
registration statement with unused capacity at least equal to the applicable Adjustment
Amount or Termination Amount, as the case may be, and such registration statement has
been declared by the SEC on or prior to the Registration Notice Date and no stop order is
in effect with respect to such registration statement as of the Registration Notice Date.
The Purchaser shall use its best efforts to have such Registration Statement declared
effective by the SEC as promptly as possible.  

     (c)
Promptly following the Registration Notice Date, the Purchaser shall afford the Seller a
reasonable opportunity to conduct a due diligence investigation with respect to the
Purchaser customary in scope for underwritten offerings of equity securities (including,
without limitation, the availability of senior management to respond to questions
regarding the business and financial condition of the Purchaser and the right to have
made available to the Seller for inspection all financial and other records, pertinent
corporate documents and other information reasonably requested the Seller), and the
Seller shall be satisfied in all material respects with the results of such due diligence
investigation of the Purchaser.  

B-1 

	

     (d)
From the effectiveness of the Registration Statement until all Registered Securities have
been sold by the Seller, the Purchaser shall, at the request of the Seller, make
available to the Seller a printed prospectus relating to the Registered Securities in
form and substance (including, without limitation, any sections describing the plan of
distribution) satisfactory to the Seller (a “Prospectus”, which term
shall include any prospectus supplement thereto), in such quantities as the Seller shall
reasonably request.  

     (e)
The Purchaser shall use its best efforts to prevent the issuance of any stop order
suspending the effectiveness of the Registration Statement or of any order preventing or
suspending the use of any Prospectus and, if any such order is issued, to obtain the
lifting thereof as soon thereafter as is possible. If the Registration Statement, the
Prospectus or any document incorporated therein by reference contains a misstatement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make any statement therein not misleading, the Purchaser shall as promptly
as practicable file any required document and prepare and furnish to the Seller a
reasonable number of copies of such supplement or amendment thereto as may be necessary
so that the Prospectus, as thereafter delivered to the purchasers of the Registered
Securities will not contain a misstatement of a material fact or omit to state a material
fact required to be stated therein or necessary to make any statement therein not
misleading.  

     (f) On
or prior to the Registered Share Delivery Date, the Purchaser shall enter into an
agreement (a “Transfer Agreement”) with the Seller (or any affiliate of
the Seller designated by the Seller) in connection with the public resale of the
Registered Securities, substantially similar to underwriting agreements customary for
underwritten offerings of equity securities, in form and substance satisfactory to the
Seller (or such affiliate), which Transfer Agreement shall (without limitation of the
foregoing):  

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

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

	

B-2 

	

	 	
          (iii)     provide
for the payment by the Purchaser of all fees and expenses in connection with such resale,
including all registration costs and all fees and expenses of counsel for the Seller (or
such affiliate). 

	

     (g) On
the applicable Adjustment Date, Share Deficit Notice Date or the Default Notice Date, as
the case may be, a balance (the “Settlement Balance”) shall be
established with an initial balance equal to the applicable Adjustment Amount or the
Termination Amount, as the case may be. Over the 20 Trading Days immediately following
the Registered Share Delivery Date, Seller shall have the right to sell any amount of the
Subject Securities, in its discretion. On each of the ten Trading Days immediately
following 20th Trading Day after the Registered Share Delivery Date, the Seller
shall sell approximately equal amounts of Subject Securities which remain unsold on that
date.  

     (h) At
the end of each day upon which sales have been made, the Settlement Balance shall be (i)
reduced by an amount equal to the aggregate proceeds received by the Seller upon the sale
of such Subject Securities (including without limitation any Subject Securities sold
pursuant to paragraph (h)), and (ii) increased by an amount equal to the Seller’s
funding cost with respect to the then-current Settlement Balance (calculated at a rate
per annum equal to the LIBOR Rate for such day).  

     (i)
If, on any date, the Settlement Balance has been reduced to zero but not all of the
Subject Securities have been sold, no additional Subject Securities shall be sold and the
Seller shall promptly deliver to the Purchaser (i) any remaining Subject Securities and
(ii) if the Settlement Balance has been reduced to an amount less than zero, an amount in
cash equal to the absolute value of the Settlement Balance.  

     (j)
If, on any date, all of the Subject Securities have been sold and the Settlement Balance
has not been reduced to zero, the Purchaser shall promptly deliver to the Seller an
additional number of Payment Shares or Alternative Termination Delivery Units (the “Make-Whole
Securities”) equal to (i) the Settlement Balance as of such date divided by (ii)
the Closing Price on the Trading Day immediately preceding the date such Make-Whole
Securities are delivered. This clause (i) shall be applied successively until the
Settlement Balance is reduced to zero. Notwithstanding the foregoing, the Purchaser shall
not be required to deliver Make-Whole Securities in excess of the number of Maximum
Delivery Shares, except to the extent that the Purchaser has at such time authorized but
unissued shares of Common Stock not reserved for Other Transactions.  

     (k)
Notwithstanding the foregoing and subject to applicable law, the Seller may elect to
terminate at any time the Registration Procedures described in this Exhibit B, in which
case the provisions of Section 3.03 shall apply as if the Seller had never elected to
require the Purchaser to comply with the Registration Procedures contained in this
Exhibit B; provided that if such termination occurs after the Registered Share
Delivery Date, Section 3.03(c) shall not apply and paragraphs (h), (i)and (j) of this
Exhibit B shall continue to be applicable.  

B-3

	

     (l) If
the number of shares of Common Stock covered by the Registration Statement is less than
the number of Registered Securities required to be delivered pursuant to clause (a) or
(j) hereof, the Purchaser shall, at the request of the Seller, file additional
registration statement(s) to register the sale of all Registered Securities required to
be delivered to the Seller.  

     (m)
The Purchaser shall cooperate with the Seller and use its best efforts to take any other
action necessary to effect the intent of the Registration Procedures set forth in this
Exhibit B.  

B-4 

	

EXHIBIT C 

OPINION OF COUNSEL TO
PURCHASER 

1. Purchaser is duly incorporated
and validly existing as a corporation in good standing under the laws of its jurisdiction
of incorporation. 

2. The Purchaser has all
corporate power to enter into this Agreement and to consummate the transactions
contemplated hereby and to deliver the Common Stock in accordance with the terms
hereof. This Agreement has been duly authorized and validly executed and
delivered by the Purchaser and constitutes a valid and legally binding
obligation of the Purchaser enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent transfer and other laws affecting
creditors’ generally from time to time in effect and to general principles
of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law). 

3. The execution and
delivery by the Purchaser of, and the performance by the Purchaser of its
obligations, under this Agreement and the consummation of the transactions
herein contemplated, and, do not conflict with or violate (x) any provision of
the certificate of incorporation or by-laws of the Purchaser, (y) any order or
judgment of any court or governmental agency or body having jurisdiction over
the Purchaser or any of the Purchaser’s assets or (z) any material
contractual restriction binding on or affecting the Purchaser or any of its
assets. 

4. All governmental and
other consents that are required to have been obtained by the Purchaser with
respect to performance, execution and delivery of this Agreement have been
obtained and are in full force and effect and all conditions of any such
consents have been complied with, other than such consents which, if not
obtained, will not individually or in the aggregate have a material adverse
effect on the Purchaser or on the ability of the Purchaser to complete the
transactions contemplated by this Agreement. 

C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]