Document:

Exhibit 10.4

 

EXECUTION VERSION

 

Barclays Bank PLC

5 The North Colonnade

Canary Wharf, London E14 4BB

England

 

c/o Barclays Capital Inc.

as Agent for Barclays Bank
PLC

745 Seventh Ave

New York, NY 10019

 

May 29,
2009

 

To: Take-Two Interactive Software, Inc.

622 Broadway

New York, New York

Attention: Treasurer

Telephone
No.:   (646) 536-2842

Facsimile No.:    (646)
941-3566

 

Re: Additional Call Option Transaction

 

The purpose of this letter
agreement (this “Confirmation”) is
to confirm the terms and conditions of the call option transaction entered into
between Barclays Bank PLC (“Dealer”),
represented by Barclays Capital Inc. (“Agent”),
and  Take-Two Interactive Software, Inc.
(“Counterparty”) as of the Trade
Date specified below (the “Transaction”).  This letter agreement constitutes a
“Confirmation” as referred to in the ISDA Master Agreement specified
below.  This Confirmation shall replace
any previous agreements and serve as the final documentation for this Transaction.  Dealer is regulated by the Financial Services
Authority.  Dealer is not a member of the
Securities Investor Protection Corporation (“SIPC”).

 

The definitions and
provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the
International Swaps and Derivatives Association, Inc. (“ISDA”) are incorporated into this
Confirmation.  In the event of any
inconsistency between the Equity Definitions and this Confirmation, this
Confirmation shall govern.  Certain defined
terms used herein have the meanings assigned to them in the Prospectus dated May 27,
2009, as supplemented by the Prospectus Supplement dated May 28, 2009 (as
so supplemented, the “Prospectus”)
relating to the USD 120,000,000 principal amount of Convertible Senior Notes
due June 1, 2014 (the “Convertible Notes”
and each USD 1,000 principal amount of Convertible Notes, a “Convertible Note”) issued by Counterparty
pursuant to the Indenture to be dated June 3, 2009 (the “Base Indenture”), as supplemented by a
Supplemental Indenture thereto (the “Supplemental
Indenture”) to be dated June 3, 2009, between Counterparty and
The Bank of New York Mellon, as trustee (the Base Indenture as so supplemented,
the “Indenture”).  In the event of any inconsistency between the
terms defined in the Prospectus, the Indenture and this Confirmation, this
Confirmation shall govern. The parties acknowledge that this Confirmation is
entered into on the date hereof with the understanding that (i) definitions
set forth in the Indenture which are also defined herein by reference to the
Indenture and (ii) sections of the Indenture that are referred to herein
will conform to the descriptions thereof in the Prospectus.  If any such definitions in the Indenture or
any such sections of the Indenture differ from the descriptions thereof in the
Prospectus, the descriptions thereof in the Prospectus will govern for purposes
of this Confirmation.  The parties
further acknowledge that the Indenture section numbers used herein are based on
the draft of the Indenture last reviewed by Dealer as of the date of this
Confirmation, and if any such section numbers are changed in the Indenture as
executed, the parties will amend this Confirmation in good faith to preserve
the intent of the parties.  For the
avoidance of doubt, references to the Indenture herein are references to the
Indenture as in effect on the date of its execution and if the Indenture is
amended following its execution, any such amendment will be disregarded for
purposes of this Confirmation unless the parties agree otherwise in writing.

 

 

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

 

1.                                       This
Confirmation evidences a complete and binding agreement between Dealer and
Counterparty as to the terms of the Transaction to which this Confirmation
relates.  This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the
2002 ISDA Master Agreement (the “Agreement”)
as if Dealer and Counterparty had executed an agreement in such form (but
without any Schedule except for (i) the election of the laws of the State
of New York as the governing law (without
reference to choice of law doctrine) and (ii) the election that Section 5(a)(v) of
the Agreement shall not apply to either party) on the Trade Date.  In the event of any inconsistency between
provisions of the Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction to which this Confirmation relates.  The parties hereby agree that no Transaction
other than the Transaction to which this Confirmation relates shall be governed
by the Agreement.

 

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

 

General Terms:

 

	
  Trade Date:

  	
   

  	
  May 29, 2009

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  The third Exchange
  Business Day immediately prior to the Premium Payment Date

  
	
   

  	
   

  	
   

  
	
  Option Style:

  	
   

  	
  “Modified American”, as
  described under “Procedures for Exercise” below

  
	
   

  	
   

  	
   

  
	
  Option Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  The common stock of
  Counterparty, par value USD 0.01 per Share (Exchange symbol “TTWO”)

  
	
   

  	
   

  	
   

  
	
  Number of Options:

  	
   

  	
  [    ].
  For the avoidance of doubt, the Number of Options shall be reduced by any
  Options exercised by Counterparty. In no event will the Number of Options be
  less than zero.

  
	
   

  	
   

  	
   

  
	
  Applicable Percentage:

  	
   

  	
  [    ]%

  
	
   

  	
   

  	
   

  
	
  Option Entitlement:

  	
   

  	
  As of any date, a number
  equal to the product of the Applicable Percentage and the Conversion Rate as
  of such date (as defined in the Supplemental Indenture, but without regard to
  any adjustments to the Conversion Rate pursuant to
  Section 9.04(g) or (h) or Section 9.06 of the
  Supplemental Indenture and subject to “Method of Adjustment” below), for each
  Convertible Note.

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  USD 10.6750

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD [    ]

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  June 3, 2009

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  The NASDAQ Global Select
  Market

  

 

2

 

	
  Related
  Exchange(s):

  	
   

  	
  All
  Exchanges

  

 

Procedures
for Exercise:

 

	
  Exercise Period(s):

  	
   

  	
  Notwithstanding anything
  to the contrary in the Equity Definitions, an Exercise Period shall occur
  with respect to an Option hereunder only if such Option is an Exercisable
  Option (as defined below) and the Exercise Period shall be, in respect of any
  Exercisable Option, the period commencing on, and including, the relevant
  Conversion Date and ending on, and including, the Scheduled Valid Day
  immediately preceding the first day of the relevant Settlement Averaging
  Period in respect of such Conversion Date; provided
  that (i) in respect of Exercisable Options relating to Convertible Notes
  for which the relevant Conversion Date occurs on or after December 1,
  2013, the final day of the Exercise Period shall be the Scheduled Valid Day
  immediately preceding the Expiration Date and (ii) in respect of
  Exercisable Options relating to Convertible Notes for which the relevant
  Conversion Date occurs after the Convertible Notes have been called for
  redemption (including after December 1, 2013) pursuant to Section 10.01 of the
  Supplemental Indenture, the final day of the Exercise Period shall be the
  Scheduled Valid Day immediately preceding the Scheduled Redemption Date (as
  defined below).

  
	
   

  	
   

  	
   

  
	
  Conversion
  Date:

  	
   

  	
  With
  respect to any conversion of Convertible Notes, the date on which the Holder
  (as such term is defined in the Supplemental Indenture) of such Convertible
  Notes satisfies all of the requirements for conversion thereof as set forth
  in Section 9.02(b) of the Supplemental Indenture.

  
	
   

  	
   

  	
   

  
	
  Exercisable
  Options:

  	
   

  	
  In respect of any Exercise Period (the “Relevant Exercise Period”), (i) the number
  of Convertible Notes surrendered
  to Counterparty for conversion on the first day of the Relevant Exercise Period, minus (ii)
  the number of “Exercisable Options,” (as
  defined in the Call Option Transaction Confirmation letter agreement dated
  May 28, 2009 between Dealer and Counterparty (the “Initial
  Call Option Confirmation”)), if any, with an “Exercise Period” (as
  defined in the Initial Call Option Confirmation) that is the same as the
  Relevant Exercise Period; provided that
  if such calculation results in a number of Exercisable Options that is less
  than zero, the number of Exercisable Options for the Relevant Exercise Period
  shall be zero.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notwithstanding
  the foregoing, in no event shall the number of Exercisable Options exceed the
  Number of Options.

  
	
   

  	
   

  	
   

  
	
  Expiration
  Time:

  	
   

  	
  The
  Valuation Time

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
  June 1,
  2014, subject to earlier exercise.

  
	
   

  	
   

  	
   

  
	
  Multiple
  Exercise:

  	
   

  	
  Applicable,
  as described under Exercisable Options above.

  
	
   

  	
   

  	
   

  
	
  Automatic
  Exercise:

  	
   

  	
  Applicable;
  and means that in respect of an Exercise Period, a number of Options not
  previously exercised hereunder equal to

  

 

3

 

	
   

  	
   

  	
  the
  number of Exercisable Options shall be deemed to be exercised on the final
  day of such Exercise Period for such Exercisable Options; provided that such Options shall be
  deemed exercised only to the extent that Counterparty has provided to Dealer
  a Notice of Exercise.

  
	
   

  	
   

  	
   

  
	
  Notice
  of Exercise:

  	
   

  	
  Notwithstanding
  anything to the contrary in the Equity Definitions, in order to exercise any
  Exercisable Options, Counterparty must notify Dealer in writing before
  5:00 p.m. (New York City time) on the Scheduled Valid Day prior to the
  scheduled first day of the Settlement Averaging Period for the Exercisable
  Options being exercised of (i) the number of such Options, (ii) the
  scheduled first day of the Settlement Averaging Period and the scheduled
  Settlement Date, (iii) the Relevant Settlement Method for such Exercisable
  Options, and (iv) if the Relevant Settlement Method for such Exercisable
  Options is not Net Share Settlement, the fixed amount of cash per Convertible
  Note that Counterparty has elected to deliver to holders of the related
  Convertible Notes (the “Specified Cash Amount”),
  together with any representations, acknowledgements and agreements set forth
  under “Settlement Method Election Conditions” below; provided that in respect of Exercisable
  Options relating to Convertible Notes with a Conversion Date occurring on or after
  December 1, 2013,
  (A) such notice may be given on or prior to the second Scheduled Valid
  Day immediately preceding the Expiration Date and need only specify the
  information required in clause (i) above, and (B) if the Relevant
  Settlement Method for such Exercisable Options is not Net Share Settlement,
  Dealer shall have received a separate notice (“Notice of Final Settlement Method”) in respect of all such
  Convertible Notes before 5:00 p.m. (New York City time) on or prior to December 1, 2013 specifying the information required in
  clauses (iii) and (iv) above; provided
  further that in respect of Exercisable Options relating to any
  Convertible Notes for which the relevant Conversion Date occurs after the
  Convertible Notes have been called for redemption (including after December 1, 2013) pursuant to Section 10.01 of the
  Supplemental Indenture, (A) such notice may be given on or prior to the
  second Scheduled Valid Day immediately preceding the Scheduled Redemption
  Date (as defined below) and need only specify the information required in
  clause (i) above and (B) Dealer shall have received a Notice of
  Early Redemption as specified below.

  
	
   

  	
   

  	
   

  
	
  Notice
  of Early Redemption:

  	
   

  	
  In
  order to exercise any Exercisable Options relating to Convertible Notes that
  have been called for redemption pursuant to Section 10.01 of the
  Supplemental Indenture, Counterparty must notify Dealer in writing before
  5:00 p.m. (New York City time) on the Scheduled Valid Day immediately
  preceding the fifty-fourth (54th) Scheduled Valid Day immediately prior to the
  scheduled redemption date specified by Counterparty for such Convertible
  Notes pursuant to Section 10.01 of the Supplemental Indenture (the “Scheduled Redemption Date”) of
  (i) the Scheduled Redemption Date, (ii) the Relevant Settlement
  Method for such Exercisable Options, and (iii) if the Relevant
  Settlement Method for such Exercisable Options is not Net Share Settlement,
  the Specified Cash Amount, together with any representations, 

  

 

4

 

	
   

  	
   

  	
  acknowledgements
  and agreements set forth under “Settlement Method Election Conditions” below.

  
	
   

  	
   

  	
   

  
	
  Valuation Time:

  	
   

  	
  At the close of trading of
  the regular trading session on the Exchange; provided
  that if the principal trading session is extended, the Calculation Agent
  shall determine the Valuation Time in its reasonable discretion.

  
	
   

  	
   

  	
   

  
	
  Market Disruption Event:

  	
   

  	
  Section 6.3(a) of
  the Equity Definitions is hereby replaced in its entirety by the following:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “‘Market Disruption Event’
  means, in respect of a Share, (i) a failure by the primary United States
  national or regional securities exchange or market on which the Shares are
  listed or admitted to trading to open for trading during its regular trading
  session or (ii) the occurrence or existence prior to 1:00 p.m., New
  York City time, on any Scheduled Valid Day for the Shares for more than one
  half-hour period in the aggregate during regular trading hours of any
  suspension or limitation imposed on trading (by reason of movements in price
  exceeding limits permitted by the relevant stock exchange or otherwise) in
  the Shares or in any options, contracts or future contracts relating to the
  Shares.”

  

 

Settlement
Terms:

 

	
  Settlement
  Method:

  	
   

  	
  For
  any Exercisable Option, Net Share Settlement; provided that the Relevant Settlement Method set forth
  below for such Exercisable Option shall apply, but only if the Settlement
  Method Election Conditions have been satisfied and Counterparty shall have
  notified Dealer of the Relevant Settlement Method in the Notice of Exercise,
  Notice of Final Settlement Method or Notice of Early Redemption, as
  applicable, for such Exercisable Option.

  
	
   

  	
   

  	
   

  
	
  Relevant
  Settlement Method:

  	
   

  	
  In
  respect of any Exercisable Option, subject to the Settlement Method Election
  Conditions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)  if
  Counterparty has elected to settle its conversion obligations in respect of
  the related Convertible Note entirely in Shares (together with cash in lieu
  of fractional Shares), then the Relevant Settlement Method for such
  Exercisable Option shall be Net Share Settlement;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)  if
  Counterparty has elected to settle its conversion obligations in respect of
  the related Convertible Note in a combination of cash and Shares, then the
  Relevant Settlement Method for such Exercisable Option shall be Combination
  Settlement; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)  if
  Counterparty has elected to settle its conversion obligations in respect of
  the related Convertible Note entirely in cash, then the Relevant Settlement
  Method for such Exercisable Option shall be Cash Settlement.

  
	
   

  	
   

  	
   

  
	
  Settlement
  Method Election Conditions:

  	
   

  	
  For
  any Relevant Settlement Method other than Net Share Settlement, such Relevant
  Settlement Method shall apply only if the Notice of Exercise, the Notice of
  Final Settlement Method or

  

 

5

 

	
   

  	
   

  	
  the
  Notice of Early Redemption for such Exercisable Option, as applicable,
  notifying Dealer of the Relevant Settlement Method contains a representation
  that, on the date of such Notice of Exercise, Notice of Final Settlement
  Method or Notice of Early Redemption, as applicable, Counterparty is not in
  possession of any material non-public information with respect to
  Counterparty or the Shares.

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  If Net Share Settlement is
  applicable to any Exercisable Option exercised or deemed exercised hereunder,
  Dealer will deliver to Counterparty, on the relevant Settlement Date for each
  such Exercisable Option a number of Shares (the “Net Share Settlement Amount”) equal to the sum, for each
  Valid Day during the Settlement Averaging Period for each such Exercisable
  Option, of (i) the Daily Option Value for such Valid Day, divided by (ii) the Relevant Price
  on such Valid Day, divided by
  (iii) the number of Valid Days in the Settlement Averaging Period; provided that in no event shall the Net
  Share Settlement Amount exceed a number of Shares equal to the product of the
  Applicable Percentage and the excess of (i) the aggregate number of
  Shares that Counterparty is obligated to deliver to the holder of the related
  Convertible Note pursuant to Section 9.03(b) of the Supplemental
  Indenture, over (ii) a number of Shares equal to USD 1,000 divided by the Relevant Price on the
  last Valid Day of the Settlement Averaging Period.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dealer will deliver cash
  in lieu of any fractional Shares to be delivered with respect to any Net
  Share Settlement Share Amount valued at the Relevant Price for the last Valid
  Day of the Settlement Averaging Period.

  
	
   

  	
   

  	
   

  
	
  Combination Settlement:

  	
   

  	
  If Combination Settlement
  is applicable to any Exercisable Option exercised or deemed exercised
  hereunder, Dealer will deliver to Counterparty, on the relevant Settlement
  Date for each such Exercisable Option:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) an amount of cash
  (the “Combination Settlement Cash Amount”)
  equal to the sum, for each Valid Day during the Settlement Averaging Period
  for such Exercisable Option, of (A) an amount (the “Daily Combination Settlement Cash Amount”)
  equal to the lesser of (1) the product of (x) the Applicable
  Percentage and (y) the Specified Cash Amount minus USD 1,000 and (2) the Daily Option Value, divided by (B) the number of Valid
  Days in the Settlement Averaging Period; provided
  that if the calculation in clause (1) above results in a
  negative number for any Valid Day, the Combination Settlement Cash Amount and
  the Daily Combination Settlement Cash Amount for such Valid Day shall each be
  deemed to be zero; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) a number of
  Shares (the “Combination Settlement Share
  Amount”) equal to the sum, for each Valid Day during the
  Settlement Averaging Period for such Exercisable Option, of (A) the
  Daily Option Value on such Valid Day minus
  Daily Combination Settlement Cash Amount for such Valid Day, divided by (B) the Relevant Price
  on such Valid Day, divided by
  (C) the number of Valid Days in the Settlement Averaging 

  

 

6

 

	
   

  	
   

  	
  Period; provided that if the calculation in
  clause (A) above results in a negative number for any Valid Day, the
  Combination Settlement Share Amount for such Valid Day shall be deemed to be
  zero.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dealer will deliver cash
  in lieu of any fractional Shares to be delivered with respect to any
  Combination Settlement Share Amount valued at the Relevant Price for the last
  Valid Day of the Settlement Averaging Period.

  
	
   

  	
   

  	
   

  
	
  Cash Settlement:

  	
   

  	
  If Cash Settlement is
  applicable to any Exercisable Option exercised or deemed exercised hereunder,
  in lieu of Section 8.1 of the Equity Definitions, Dealer will pay to
  Counterparty, on the relevant Settlement Date for each such Exercisable
  Option, an amount of cash equal to the sum, for each Valid Day during the
  Settlement Averaging Period for such Exercisable Option, of (i) the
  Daily Option Value for such Valid Day, divided
  by (ii) the number of Valid Days in the Settlement Averaging
  Period.

  
	
   

  	
   

  	
   

  
	
  Daily Option Value:

  	
   

  	
  For any Valid Day, an
  amount equal to (i) the Option Entitlement on such Valid Day multiplied by (ii) the Relevant
  Price on such Valid Day less the
  Strike Price on such Valid Day; provided
  that if the calculation contained in clause (ii) above results in a
  negative number, the Daily Option Value for such Valid Day shall be deemed to
  be zero. In no event will the Daily Option Value be less than zero.

  
	
   

  	
   

  	
   

  
	
  Valid Day:

  	
   

  	
  A day on which
  (i) there is no Market Disruption Event and (ii) trading in the
  Shares generally occurs on the Exchange or, if the Shares are not then listed
  on the Exchange, on the principal other United States national or regional
  securities exchange on which the Shares are then listed or, if the Shares are
  not then listed on a United States national or regional securities exchange,
  on the principal other market on which the Shares are then traded. If the
  Shares are not so listed or traded, “Valid Day” means a Business Day.

  
	
   

  	
   

  	
   

  
	
  Scheduled Valid Day:

  	
   

  	
  A day that is scheduled to
  be a Valid Day on the principal United States national or regional securities
  exchange or market on which the Shares are listed or admitted for trading. If
  the Shares are not so listed or admitted for trading, “Scheduled Valid Day”
  means a Business Day.

  
	
   

  	
   

  	
   

  
	
  Business Day:

  	
   

  	
  Any day other than a
  Saturday, a Sunday or a day on which the Federal Reserve Bank of New York is
  authorized or required by law or executive order to close or be closed.

  
	
   

  	
   

  	
   

  
	
  Relevant Price:

  	
   

  	
  On any Valid Day, the per
  Share volume-weighted average price as displayed under the heading “Bloomberg
  VWAP” on Bloomberg page TTWO.UQ <equity> AQR (or its equivalent
  successor page if such page is not available) in respect of the
  period from the scheduled opening time of the Exchange to the Scheduled
  Closing Time of the Exchange on such Valid Day (or if such volume-weighted
  average price is unavailable, the market value of one Share on such Valid
  Day, as determined by the Calculation Agent using a volume-weighted method).

  

 

7

 

	
  Settlement Averaging
  Period:

  	
   

  	
  For any Exercisable Option
  and regardless, for the avoidance of doubt, of the settlement method elected
  by Counterparty under the related Convertible Note, (i) if Counterparty
  has, on or prior to December 1, 2013, delivered a Notice of Exercise to
  Dealer with respect to such Exercisable Option with a Conversion Date
  occurring prior to December 1, 2013, the fifty (50) consecutive Valid
  Days commencing on and including the second Scheduled Valid Day following such
  Conversion Date, or (ii) if Counterparty has, on or following
  December 1, 2013, delivered a Notice of Exercise to Dealer with respect
  to such Exercisable Option with a Conversion Date occurring on or following
  December 1, 2013, the fifty (50) consecutive Valid Days commencing on,
  and including, the fifty-second (52nd) Scheduled Valid Day
  immediately prior to the Expiration Date; provided
  that if Counterparty has at any time delivered a Notice of Early
  Redemption to Dealer (including after December 1, 2013), the Settlement
  Averaging Period for any Exercisable Option shall be the fifty (50)
  consecutive Valid Days commencing on, and including, the fifty-second (52nd) Scheduled Valid Day
  immediately prior to the Scheduled Redemption Date, regardless, for the
  avoidance of doubt, of the settlement method elected by Counterparty under
  the related Convertible Note

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  For any Exercisable
  Option, the third Business Day immediately following the final Valid Day of
  the Settlement Averaging Period for such Exercisable Option.

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
   

  	
  The provisions of Sections
  9.1(c), 9.8, 9.9, 9.11, 9.12 and 10.5 of the Equity Definitions will be
  applicable, except that all references in such provisions to “Physically-settled”
  shall be read as references to “Share Settled”. “Share Settled” in relation
  to any Option means that Net Share Settlement or Combination Settlement is
  applicable to that Option.

  
	
   

  	
   

  	
   

  
	
  Representation and
  Agreement:

  	
   

  	
  Notwithstanding
  Section 9.11 of the Equity Definitions, the parties acknowledge that any
  Shares delivered to Counterparty shall be, upon delivery, subject to
  restrictions and limitations arising from Counterparty’s status as issuer of
  the Shares under applicable securities laws.

  

 

3.
Additional Terms applicable to the Transaction:

 

Adjustments
applicable to the Transaction:

 

	
  Potential Adjustment
  Events:

  	
   

  	
  Notwithstanding
  Section 11.2(e) of the Equity Definitions, a “Potential Adjustment
  Event” means an occurrence of any event or condition, as set forth in
  Section 9.04 of the Supplemental Indenture that would result in an
  adjustment to the Conversion Rate of the Convertible Notes; provided that in no event shall there be
  any adjustment hereunder as a result of an adjustment to the Conversion Rate
  pursuant to Section 9.04(g) or (h) or Section 9.06 of the
  Supplemental Indenture.

  

 

8

 

	
  Method of Adjustment:

  	
   

  	
  Calculation Agent
  Adjustment, and means that, notwithstanding Section 11.2(c) of the
  Equity Definitions, upon any adjustment to the Conversion Rate of the
  Convertible Notes pursuant to the Supplemental Indenture (other than
  Section 9.04(g) and (h) and Section 9.06 of the
  Supplemental Indenture) or any adjustment pursuant to Section 9.05 of
  the Supplemental Indenture, the Calculation Agent will make a corresponding
  adjustment to any one or more of the Strike Price, Number of Options, Option
  Entitlement and any other variable relevant to the exercise, settlement or
  payment for the Transaction; provided that
  if the Calculation Agent in good faith disagrees with any adjustment to the
  Conversion Rate pursuant to Section 9.04(m) or Section 9.05 of
  the Supplemental Indenture, the Calculation Agent will determine the
  corresponding adjustment to be made to any one or more of the Strike Price,
  Number of Options, Option Entitlement and any other variable relevant to the
  exercise, settlement or payment of the Transaction in a commercially
  reasonable manner.

  

 

Extraordinary
Events applicable to the Transaction:

 

	
  Merger Events:

  	
   

  	
  Applicable; provided that notwithstanding
  Section 12.1(b) of the Equity Definitions, a “Merger Event” means
  the occurrence of any event or condition set forth in the definition of
  “Merger Event” in Section 9.07 of the Supplemental Indenture.

  

 

	
  Tender Offers:

  	
   

  	
  Applicable; provided that notwithstanding
  Section 12.1(d) of the Equity Definitions, a “Tender Offer” means
  the occurrence of any event or condition set forth in
  Section 9.04(e) of the Supplemental Indenture.

  

 

	
  Consequence of Merger Events/Tender
  Offers:

  	
   

  	
   

  
	
   

  	
  Notwithstanding
  Section 12.2 and Section 12.3 of the Equity Definitions, upon the
  occurrence of a Merger Event or a Tender Offer, the Calculation Agent shall
  make a corresponding adjustment in respect of any adjustment under the Supplemental
  Indenture to any one or more of the nature of the Shares, Strike Price,
  Number of Options, Option Entitlement and any other variable relevant to the
  exercise, settlement or payment for the Transaction; provided, however, that such adjustment shall be made without
  regard to any adjustment to the Conversion Rate for the issuance of
  additional shares as set forth in Section 9.06 of the Supplemental
  Indenture; provided further
  that if, with respect to a Merger Event or a Tender Offer, (i) the
  consideration for the Shares includes (or, at the option of a holder of
  Shares, may include) shares of an entity or person not organized under the
  laws of the United States, any State thereof or the District of Columbia or
  (ii) the Counterparty to the Transaction following such Merger Event or
  Tender Offer, will not be the Issuer following such Merger Event or Tender
  Offer, then Cancellation and Payment (Calculation Agent Determination) shall
  apply.

  
	
   

  	
   

  	
   

  
	
  Nationalization,
  Insolvency or Delisting:

  	
   

  	
  Cancellation and Payment
  (Calculation Agent Determination); provided
  that, in addition to the provisions of Section 12.6(a)(iii) of the
  Equity Definitions, it will also constitute a Delisting if the Exchange is
  located in the United States and the Shares are not 

  

 

9

 

	
   

  	
   

  	
  immediately re-listed,
  re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ
  Global Select Market or The NASDAQ Global Market (or their respective
  successors); if the Shares are immediately re-listed, re-traded or re-quoted
  on any of the New York Stock Exchange, The NASDAQ Global Select Market or The
  NASDAQ Global Market (or their respective successors), such exchange or
  quotation system shall thereafter be deemed to be the Exchange.

  
	
   

  	
   

  	
   

  
	
  Additional
  Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change
  in Law:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(ii)(X) of the Equity Definitions is hereby amended
  by replacing the word “Shares” with the phrase “Hedge Positions.”

  
	
   

  	
   

  	
   

  
	
  Failure
  to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging
  Disruption:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(v) of the Equity Definitions is hereby modified by
  inserting the following two phrases at the end of such Section:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “For the avoidance of doubt, the term “equity price risk” shall be
  deemed to include, but shall not be limited to, stock price and volatility
  risk. And, for the further avoidance of doubt, any such transactions or
  assets referred to in phrases (A) or (B) above must be available on
  commercially reasonable pricing terms.”

  
	
   

  	
   

  	
   

  
	
  Hedging
  Party:

  	
   

  	
  Dealer for all applicable
  Additional Disruption Events

  
	
   

  	
   

  	
   

  
	
  Determining
  Party:

  	
   

  	
  For all applicable
  Extraordinary Events, Dealer

  

 

	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and
  Acknowledgements

  	
   

  	
   

  
	
  Regarding Hedging
  Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
   

  	
  Applicable

  

 

	
  4.  Calculation Agent:

  	
   

  	
  Dealer

  

 

5.  Account Details:

 

(a)                           Account for
payments to Counterparty:

 

[       ]

ABA:  [      
]

Acct:   Take-Two Interactive Software Inc.

Acct
No.:  [       ]

 

Account for delivery of Shares
to Counterparty:

 

To
be provided by Counterparty.

 

(b)                                Account for payments to Dealer:

 

Bank:  [      
]

BIC:  [      
]

Acct:  [      
]

Beneficiary:
[       ]

Ref:   [      
]

 

10

 

Account
for delivery of Shares from Dealer:

 

To be provided by Dealer.

 

6. Offices:

 

The Office of Counterparty
for the Transaction is:  Inapplicable,
Counterparty is not a Multibranch Party.

 

The
Office of Dealer for the Transaction is: London

 

Barclays Bank PLC

5 The North Colonnade

Canary Wharf, London E14 4BB

England

 

7.
Notices: For purposes of this Confirmation:

 

(a)                                  Address for
notices or communications to Counterparty:

 

Take-Two Interactive
Software, Inc.

622 Broadway

New York, New York

Attention: Treasurer

Telephone No.:  (646)
536-2842

Facsimile
No.:   (646) 941-3566

 

(b)                                 Address for
notices or communications to Dealer:

 

Barclays Bank PLC

c/o Barclays Capital Inc.

745 Seventh Ave

New York, NY 10019

Attention:  Paul Robinson

Telephone No.:   (+1) 212-526-0111

Facsimile No.:    (+1) 917-522-0458

 

8.  Representations and Warranties of
Counterparty

 

Each of the representations
and warranties made by Counterparty pursuant to the Underwriting Agreement (the
“Underwriting Agreement”) dated as
of May 28, 2009 between Counterparty and J.P. Morgan Securities Inc. and
Barclays Capital Inc., as representative of the Underwriters party thereto, on
the “Additional Closing Date” (as defined in the Underwriting Agreement) are
true and correct and are hereby deemed to be repeated to Dealer as if set forth
herein.  Counterparty hereby further
represents and warrants to Dealer that:

 

(a)                                   Counterparty
has all necessary corporate power and authority to execute, deliver and perform
its obligations in respect of this Transaction; such execution, delivery and
performance have been duly authorized by all necessary corporate action on
Counterparty’s part; and this Confirmation has been duly and validly executed
and delivered by Counterparty and constitutes its valid and binding obligation,
enforceable against Counterparty in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditors’ rights and remedies generally,
and subject, as to enforceability, to general principles of equity, including
principles of commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity) and except that
rights to indemnification and contribution hereunder may be limited by federal
or state securities laws or public policy relating thereto.

 

11

 

(b)                               Neither
the execution and delivery of this Confirmation nor the incurrence or
performance of obligations of Counterparty hereunder will conflict with or
result in a breach of the certificate of incorporation or by-laws (or any
equivalent documents) of Counterparty, or any applicable law or regulation, or
any order, writ, injunction or decree of any court or governmental authority or
agency, or any agreement or instrument to which Counterparty or any of its
subsidiaries is a party or by which Counterparty or any of its subsidiaries is
bound or to which Counterparty or any of its subsidiaries is subject, or
constitute a default under, or result in the creation of any lien under, any
such agreement or instrument.

 

(c)                                No
consent, approval, authorization, or order of, or filing with, any governmental
agency or body or any court is required in connection with the execution,
delivery or performance by Counterparty of this Confirmation, except such as
have been obtained or made and such as may be required under the Securities Act
of 1933, as amended (the “Securities Act”)
or state securities laws.

 

(d)                               Counterparty
is not and will not be required to register as an “investment company” as such
term is defined in the Investment Company Act of 1940, as amended.

 

(e)                                It is an “eligible contract participant” (as
such term is defined in Section 1a(12) of the Commodity Exchange Act, as
amended (the “CEA”)) because one or more of the
following is true:

 

Counterparty is a corporation,
partnership, proprietorship, organization, trust or other entity and:

 

(A)                              Counterparty has total assets in excess of USD
10,000,000;

 

(B)                                the obligations of Counterparty hereunder are guaranteed, or otherwise
supported by a letter of credit or keepwell, support or other agreement, by an entity
of the type described in Section 1a(12)(A)(i) through (iv),
1a(12)(A)(v)(I), 1a(12)(A)(vii) or 1a(12)(C) of the CEA; or

 

(C)                                Counterparty has a net
worth in excess of USD 1,000,000 and has entered into this Agreement in
connection with the conduct of Counterparty’s business or to manage the risk
associated with an asset or liability owned or incurred or reasonably likely to
be owned or incurred by Counterparty in the conduct of Counterparty’s business.

 

(f)                                Each
of it and its affiliates is not, on the date hereof, in possession of any
material non-public information with respect to Counterparty.

 

9.  Other Provisions:

 

(a)                              Opinions.  Counterparty shall deliver to Dealer, on or
prior to the Premium Payment Date, an opinion of counsel, dated as of the Premium
Payment Date, with respect to the matters set forth in Sections 8(a) through
(c) of this Confirmation.  Delivery
of such opinion to Dealer shall be a condition precedent for the purpose of Section 2(a)(iii) of
the Agreement with respect to each obligation of Dealer under Section 2(a)(i) of
the Agreement.

 

(b)                             Repurchase Notices.  Counterparty shall, on any day on which
Counterparty effects any repurchase of Shares, promptly give Dealer a written
notice of such repurchase (a “Repurchase Notice”)
on such day if following such repurchase, the number of outstanding Shares as
determined on such day is (i) less than 76 million (in the case of the
first such notice) or (ii) thereafter more than 4 million less than the
number of Shares included in the immediately preceding Repurchase Notice.  Counterparty agrees to indemnify and hold
harmless Dealer and its affiliates and their respective officers, directors,
employees, affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”) from and against any
and all losses (including losses relating to Dealer’s hedging activities as a
consequence of becoming, or of the risk of becoming, a Section 16
“insider”, including without limitation, any forbearance from 

 

12

 

hedging activities or cessation of hedging
activities and any losses in connection therewith with respect to this
Transaction), claims, damages, judgments, liabilities and expenses (including
reasonable attorney’s fees), joint or several, which an Indemnified Person may
become subject to, as a result of Counterparty’s failure to provide Dealer with
a Repurchase Notice on the day and in the manner specified in this paragraph,
and to reimburse, within 30 days, upon written request, each of such
Indemnified Persons for any reasonable legal or other expenses incurred in
connection with investigating, preparing for, providing testimony or other
evidence in connection with or defending any of the foregoing.  If any suit, action, proceeding (including
any governmental or regulatory investigation), claim or demand shall be brought
or asserted against the Indemnified Person as a result of Counterparty’s
failure to provide Dealer with a Repurchase Notice in accordance with this
paragraph, such Indemnified Person shall promptly notify Counterparty in
writing, and Counterparty, upon request of the Indemnified Person, shall retain
counsel reasonably satisfactory to the Indemnified Person to represent the
Indemnified Person and any others Counterparty may designate in such proceeding
and shall pay the fees and expenses of such counsel related to such
proceeding.  Counterparty shall not be
liable for any settlement of any proceeding contemplated by this paragraph that
is effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, Counterparty agrees to indemnify
any Indemnified Person from and against any loss or liability by reason of such
settlement or judgment.  Counterparty
shall not, without the prior written consent of the Indemnified Person, effect
any settlement of any pending or threatened proceeding contemplated by this
paragraph that is 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 on terms reasonably satisfactory to such Indemnified
Person.  If the indemnification provided
for in this paragraph is unavailable to an Indemnified Person or insufficient
in respect of any losses, claims, damages or liabilities referred to therein,
then Counterparty hereunder, in lieu of indemnifying such Indemnified Person
thereunder, shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities.  The remedies provided for in this paragraph (b) are
not exclusive and shall not limit any rights or remedies which may otherwise be
available to any Indemnified Party at law or in equity.  The indemnity and contribution agreements
contained in this paragraph shall remain operative and in full force and effect
regardless of the termination of this Transaction.

 

(c)                               Regulation M.  Counterparty is not on the date hereof
engaged in a distribution, as such term is used in Regulation M under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”),
of any securities of Counterparty. 
Counterparty shall not, until the second Scheduled Trading Day
immediately following the Effective Date, engage in any such distribution.

 

(d)                              No Manipulation.  Counterparty is not entering into this
Transaction to create actual or apparent trading activity in the Shares (or any
security convertible into or exchangeable for the Shares) or to raise or
depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for the Shares) or otherwise in violation of the
Exchange Act.

 

(e)                               Transfer or Assignment.  (i) Counterparty shall have the right to
transfer or assign its rights and obligations hereunder with respect to all,
but not less than all, of the Options hereunder (such Options, the “Transfer Options”); provided that
such transfer or assignment shall be subject to reasonable conditions that
Dealer may impose, including but not limited, to the following conditions:

 

(A)      With
respect to any Transfer Options, Counterparty shall not be released from its
notice and indemnification obligations pursuant to Section 9(b) or
any obligations under Section 9(m) or 9(r) of this Confirmation;

 

(B)        Any
Transfer Options shall only be transferred or assigned to a third party that is
a United States person (as defined in the Internal Revenue Code of 1986, as
amended);

 

13

 

(C)        Such
transfer or assignment shall be effected on terms, including any reasonable
undertakings by such third party (including, but not limited to, an undertaking
with respect to compliance with applicable securities laws in a manner that, in
the reasonable judgment of Dealer, will not expose Dealer to material risks
under applicable securities laws) and execution of any documentation and
delivery of legal opinions with respect to securities laws and other matters by
such third party and Counterparty, as are requested and reasonably satisfactory
to Dealer;

 

(D)       Dealer
will not, as a result of such transfer and assignment, be required to pay the
transferee on any payment date an amount under Section 2(d)(i)(4) of
the Agreement greater than an amount that Dealer would have been required to
pay to Counterparty in the absence of such transfer and assignment;

 

(E)         An
Event of Default, Potential Event of Default or Termination Event will not
occur as a result of such transfer and assignment;

 

(F)         Without
limiting the generality of clause (B), Counterparty shall cause the transferee
to make such Payee Tax Representations and to provide such tax documentation as
may be reasonably requested by Dealer to permit Dealer to determine that
results described in clauses (D) and (E) will not occur upon or after
such transfer and assignment; and

 

(G)        Counterparty
shall be responsible for all reasonable costs and expenses, including reasonable
counsel fees, incurred by Dealer in connection with such transfer or
assignment.

 

(ii) Dealer may, without Counterparty’s consent, transfer or
assign all or any part of its rights or obligations under the Transaction to
any third party with a rating for its long term, unsecured and unsubordinated
indebtedness equal to or better than the lesser of (x) the credit rating
of Dealer at the time of the transfer and (y) AA- by Standard and Poor’s
Rating Group, Inc. or its successor (“S&P”), or
Aa3 by Moody’s Investor Service, Inc. (“Moody’s”)
or, if either S&P or Moody’s ceases to rate such debt, at least an
equivalent rating or better by a substitute rating agency mutually agreed by
Counterparty and Dealer; provided that
such transfer or assignment shall be subject to the condition that (1) a
Tax Event described in Section 5(b)(iii)(A) or (B) will not
occur with respect to Counterparty due to, and immediately upon, such transfer
or assignment and (2) an Event of Default, Potential Event of Default or
Termination Event will not occur as a result of such transfer or
assignment.  Dealer agrees to use its
commercially reasonable efforts to provide prior notice to Counterparty of any
transfer or assignment of Options to a third party pursuant to this
Section.  If at any time at which (1) the
Section 16 Percentage exceeds 7.5%, (2) the Option Equity Percentage
exceeds 14.5%, or (3) the Share Amount exceeds the Post-Effective Limit
(if any applies), Dealer may, in its reasonable discretion, either (I) effect
a transfer or assignment of Options to a third party in accordance with the
conditions described above such that (1) the Section 16 Percentage
will be equal to or less than 7.5%, (2) the Option Equity Percentage will
be equal to or less than 14.5%, and (3) the Share Amount will be equal to
or less than any such Post-Effective Limit, or (II) designate any Exchange
Business Day as an Early Termination Date with respect to a portion of the
Transaction (the “Terminated Portion”),
such that following such partial termination (1) the Section 16
Percentage will be equal to or less than 7.5%, (2) the Option Equity
Percentage will be equal to or less than 14.5%, and (3) the Share Amount
will be equal to or less than such Post-Effective Limit.  In the event that Dealer so designates an
Early Termination Date with respect to a Terminated Portion, a payment shall be
made pursuant to Section 6 of the Agreement as if (1) an Early
Termination Date had been designated in respect of a Transaction having terms
identical to this Transaction and a Number of Options equal to the number of
Options underlying the Terminated Portion, (2) Counterparty shall be the
sole Affected Party with respect to such partial termination and (3) the
Terminated Portion shall be the sole Affected Transaction (and, for the
avoidance of doubt, the provisions of Section 9(k) shall apply to any
amount that is payable by Dealer to Counterparty pursuant to this sentence as
if Counterparty was not the Affected Party). 
The “Section 16 Percentage”
as of any day is the fraction, expressed as a percentage, (A) the
numerator of which is the number of Shares that Dealer and each person subject
to aggregation of Shares with Dealer under Section 13 or Section 16
of the Exchange Act and rules promulgated thereunder directly or
indirectly beneficially own (as defined under Section 13 

 

14

 

or Section 16 of the Exchange Act and rules promulgated
thereunder) and (B) the denominator of which is the number of Shares
outstanding.  The “Option
Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the sum of (x) the product
of the Number of Options and the Option Entitlement and (y) the aggregate
number of Shares underlying any other call option transaction sold by Dealer to
Counterparty, and (B) the denominator of which is the number of Shares
outstanding.  The “Share Amount”
as of any day is the number of Shares that Dealer and any person whose
ownership position would be aggregated with that of Dealer (Dealer or any such
person, a “Dealer Person”) under any law, rule, regulation or regulatory order
that for any reason becomes applicable to ownership of Shares after the Trade
Date (“Applicable Laws”), owns,
beneficially owns, constructively owns, controls, holds the power to vote or
otherwise meets a relevant definition of ownership of under the Applicable
Laws, as determined by Dealer in its reasonable discretion. The “Post-Effective Limit” means (x) the minimum number of
Shares that would give rise to reporting or registration obligations or other
requirements (including obtaining prior approval from any person or entity) of
a Dealer Person, or would result in an adverse effect on a Dealer Person, under
the Applicable Laws, as determined by Dealer in its reasonable discretion, minus (y) 1% of the number of Shares
outstanding.

 

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

 

(f)                                  Staggered Settlement.  If upon advice of counsel with respect to
applicable legal and regulatory requirements, including any requirements
relating to Dealer’s hedging activities hereunder, Dealer reasonably determines
that it would not be practicable or advisable to deliver, or to acquire Shares
to deliver, any or all of the Shares to be delivered by Dealer on the Settlement
Date for the Transaction, Dealer may, by notice to Counterparty on or prior to
any Settlement Date (a “Nominal Settlement Date”),
elect to deliver the Shares on two or more dates (each, a “Staggered
Settlement Date”) as follows:

 

(a)                                  in such notice, Dealer will specify to
Counterparty the related Staggered Settlement Dates (the first of which will be
such Nominal Settlement Date and the last of which will be no later than the
twentieth (20th) Exchange Business Day following such Nominal Settlement Date)
and the number of Shares that it will deliver on each Staggered Settlement
Date;

 

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

 

(c)                                  if the Net Share Settlement terms or the
Combination Settlement terms set forth above were to apply on the Nominal
Settlement Date, then the Net Share Settlement terms or the Combination
Settlement terms, as applicable, will apply on each Staggered Settlement Date,
except that the Shares deliverable pursuant to such terms on the Nominal
Settlement Date will be allocated among such Staggered Settlement Dates as
specified by Dealer in the notice referred to in clause (a) above.

 

(g)                               Role  of Agent.  Each of Dealer and
Counterparty acknowledges to and agrees with the other party hereto and with
the Agent that (i) the Agent is acting as agent for Dealer under the
Transaction pursuant to instructions from such party, (ii) the Agent is
not a principal or party to the Transaction, and may transfer its rights and
obligations with respect to the Transaction, (iii) the Agent shall have no
responsibility, obligation or liability, by way of issuance, guaranty, endorsement
or otherwise in any manner with respect to the performance of either party
under the Transaction, (iv) Dealer and the Agent have not given, and
Counterparty is not relying (for 

 

15

 

purposes of
making any investment decision or otherwise) upon, any statements, opinions or
representations (whether written or oral) of Dealer or the Agent, other than
the representations expressly set forth in this Confirmation or the Agreement,
and (v) each party agrees to proceed solely against the other party, and
not the Agent, to collect or recover any money or securities owed to it in
connection with the Transaction.  Each
party hereto acknowledges and agrees that the Agent is an intended third party
beneficiary hereunder.  Counterparty
acknowledges that the Agent is an affiliate of Dealer.  Dealer will be acting for its own account in
respect of this Confirmation and the Transaction contemplated hereunder.

 

(h)                               Additional Termination Events.

 

(i)  Notwithstanding
anything to the contrary in this Confirmation if an event of default with
respect to Counterparty shall occur under the terms of the Convertible Notes as
set forth in Section 6.01 of the Supplemental Indenture or under Section 6.01
of the Base Indenture, then such event of default shall constitute an
Additional Termination Event applicable to the Transaction and, with respect to
such event of default (A) Counterparty shall be deemed to be the sole
Affected Party and the Transaction shall be the sole Affected Transaction and (B) Dealer
shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of
the Agreement.

 

(ii)  Notwithstanding anything to the contrary in this
Confirmation, the giving of any Notice of Exercise in respect of Exercisable
Options that correspond to Convertible Notes converted pursuant to Section 9.01(iv) of
the Supplemental Indenture in connection with a “Make-Whole Fundamental Change”
(as defined in the Supplemental Indenture) shall constitute an Additional
Termination Event as provided in this clause (ii).  Upon receipt of any such notice, Dealer shall
designate an Exchange Business Day as an Early Termination Date with respect to
the portion of this Transaction corresponding to the number of such Exercisable
Options specified in such Notice of Exercise (such number of Options, the “Specified Options”). 
Any payment hereunder with respect to such termination shall be
calculated pursuant to Section 6 of the Agreement as if (A) an Early
Termination Date had been designated in respect of a Transaction having terms
identical to this Transaction and a Number of Options equal to the number of
Specified Options, (B) Counterparty shall be the sole Affected Party with
respect to such Additional Termination Event, (C) the terminated portion
of the Transaction shall be the sole Affected Transaction and (D) for the
avoidance of doubt, in determining the amount payable pursuant to Section 6
of the Agreement, the Calculation Agent, acting in a commercially reasonable
manner, shall not take into account any adjustments to the Option Entitlement
that result from corresponding adjustments to the Conversion Rate pursuant to Section 9.06
of the Supplemental Indenture; provided that
the amount of cash deliverable in respect of such early termination by Dealer
to Counterparty shall not be greater than the product of (x) the
Applicable Percentage and (y) the excess of (I) (1) the number
of Specified Options multiplied by (2) the
Conversion Rate (after taking into account any applicable adjustments to the
Conversion Rate pursuant to Section 9.06 of the Supplemental Indenture) multiplied by (3) a price per Share determined by the
Calculation Agent over (II) the aggregate principal amount of the
corresponding Convertible Notes, as determined by the Calculation Agent in a
commercially reasonable manner.

 

(i)                                   Amendments
to Equity Definitions.  (i) Section 12.6(a)(ii) of the
Equity Definitions is hereby amended by (1) deleting from the fourth line
thereof the word “or” after the word “official” and inserting a comma therefor,
and (2) deleting the semi-colon at the end of subsection (B) thereof
and inserting the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events specified in Section 5(a)(vii)(1) through
(9) of the ISDA Master Agreement with respect to that Issuer.”

 

(ii) Section 12.9(b)(i) of the Equity Definitions is
hereby amended by (1) replacing “either party may elect” with “Dealer may elect” and (2) replacing “notice to the other party” with “notice
to Counterparty” in the first sentence of such section.

 

16

 

(j)                                   No
Collateral; Setoff. 
Notwithstanding any provision of the Agreement or any other agreement
between the parties to the contrary, the obligations of Dealer and Counterparty
hereunder are not secured by any collateral. 
Obligations of Counterparty hereunder shall not be set off by
Counterparty against any obligations of Dealer, whether arising under the
Agreement, this Confirmation, under any other agreement between the parties
hereto, by operation of law or otherwise. 
In addition to and without limiting any rights of set-off that a party
hereto may have as a matter of law, pursuant to contract or otherwise, upon the
occurrence of an Early Termination Date, Dealer (and only Dealer)  shall
have the right to set off any obligation that it may have to Counterparty under
this Confirmation, including without limitation any obligation to make any
payment of cash or delivery of Shares to Counterparty, against any obligation
Counterparty may have to Dealer under any other agreement between Dealer and
Counterparty relating to Shares (each such contract or agreement, a “Separate Agreement”), including without
limitation any obligation to make a payment of cash or a delivery of Shares or
any other property or securities. For this purpose, Dealer shall be entitled to
convert any obligation (or the relevant portion of such obligation) denominated
in one currency into another currency at the rate of exchange at which it would
be able to purchase the relevant amount of such currency, and to convert any
obligation to deliver any non-cash property into an obligation to deliver cash
in an amount calculated by reference to the market value of such property as of
the Early Termination Date, as determined by the Calculation Agent in its sole
discretion; provided that in the
case of a set-off of any obligation to release or deliver assets against any
right to receive fungible assets, such obligation and right shall be set off in
kind and; provided further that
in determining the value of any obligation to deliver Shares, the value at any
time of such obligation shall be determined by reference to the market value of
the Shares at such time, as determined in good faith by the Calculation
Agent.  If an obligation is unascertained
at the time of any such set-off, the Calculation Agent may in good faith
estimate the amount or value of such obligation, in which case set-off will be
effected in respect of that estimate, and the relevant party shall account to
the other party at the time such obligation or right is ascertained. For the
avoidance of doubt and notwithstanding anything to the contrary provided in
this Section 9(j), in the event of bankruptcy or liquidation of either
Counterparty or Dealer neither party shall have the right to set off any
obligation that it may have to the other party under this Transaction against
any obligation such other party may have to it, whether arising under the
Agreement, this Confirmation or any other agreement between the parties hereto,
by operation of law or otherwise.

 

(k)                                Alternative
Calculations and Payment on Early Termination and on Certain  Extraordinary Events.  If in
respect of this Transaction, an amount is payable by Dealer to Counterparty (i) pursuant to Section 12.7
or Section 12.9 of the Equity Definitions or (ii) pursuant to Section 6(d)(ii) of
the Agreement (a “Payment Obligation”),
Counterparty may request Dealer to
satisfy any such Payment Obligation by the Share Termination Alternative (as
defined below) (except that Counterparty shall not make such an election in the
event of a Nationalization, Insolvency, Merger Event or Tender Offer, in each
case, in which the consideration to be paid to holders of Shares consists
solely of cash, or an Event of Default in which Counterparty is the Defaulting
Party or a Termination Event in which Counterparty is the Affected Party, other
than an Event of Default of the type described in Section 5(a)(iii), (v),
(vi), (vii) or (viii) of the Agreement or a Termination Event of the
type described in Section 5(b) of the Agreement in each case that
resulted from an event or events outside Counterparty’s control) and shall give
irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than
12:00 p.m. New York local time on the Merger Date, the Tender Offer Date,
the Announcement Date (in the case of Nationalization, Insolvency or
Delisting), the Early Termination Date or date of cancellation, as applicable; provided that if Counterparty does not validly request Dealer to satisfy its Payment Obligation by the Share
Termination Alternative, Dealer
shall have the right, in its sole discretion, to satisfy its Payment Obligation
by the Share Termination Alternative, notwithstanding Counterparty’s election
to the contrary.  In calculating any
amounts under Section 6(e) of the Agreement, notwithstanding anything
to the contrary in the Agreement, (1) separate amounts shall be calculated
as set forth in Section 6(e) with respect to (i) this
Transaction and (ii) all other Transactions, and (2) such separate
amounts shall be payable pursuant to Section 6(d)(ii) of the
Agreement.

 

17

 

	
  Share Termination Alternative:

  	
   

  	
  Applicable and means that
  Dealer shall deliver to Counterparty the Share Termination Delivery Property
  on, or within a commercially reasonable period of time after, the date when
  the Payment Obligation would otherwise be due pursuant to Section 12.7
  or 12.9 of the Equity Definitions or Section 6(d)(ii) and 6(e) of
  the Agreement, as applicable (the “Share Termination
  Payment Date”), in satisfaction of the Payment Obligation in the
  manner reasonably requested by Counterparty free of payment.

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery
  Property:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Unit
  Price:

  	
   

  	
  The value to Dealer of
  property contained in one Share Termination Delivery Unit, as determined by
  the Calculation Agent in its discretion by commercially reasonable means and
  notified by the Calculation Agent to Dealer at the time of notification of
  the Payment Obligation. For the avoidance
  of doubt, the parties agree that in determining the Share Termination
  Delivery Unit Price the Calculation Agent may consider the purchase price
  paid in connection with the purchase of Share Termination Delivery Property.

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery
  Unit:

  	
   

  	
  One Share or, if a Merger
  Event has occurred and a corresponding adjustment to this Transaction has
  been made, a unit consisting of the number or amount of each type of property
  received by a holder of one Share (without consideration of any requirement
  to pay cash or other consideration in lieu of fractional amounts of any
  securities) in such Merger Event, as determined by the Calculation Agent.

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other applicable
  provisions:

  	
   

  	
  If Share Termination
  Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.11, 9.12
  and 10.5 (as modified above) of the Equity Definitions will be applicable,
  except that all references in such provisions to “Physically-settled” shall
  be read as references to “Share Termination Settled” and all references to “Shares”
  shall be read as references to “Share Termination Delivery Units”. “Share
  Termination Settled” in relation to this Transaction means that Share
  Termination Alternative is applicable to this Transaction.

  

 

18

 

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

 

(m)                             Registration.  Counterparty hereby agrees that if, in the
good faith reasonable judgment of Dealer, (A) the Shares acquired by
Dealer for the purpose of hedging its obligations pursuant to this Transaction
(the “Hedge Shares”) or (B) any Early
Unwind Shares delivered to Dealer pursuant to Section 9(t) (any such
Hedge Shares or Early Unwind Shares, “Restricted Shares”)
cannot be sold in the public market by Dealer without registration under the
Securities Act, Counterparty shall, at its election, either (i) in order
to allow Dealer to sell the Restricted Shares in a registered offering, make
available to Dealer an effective registration statement under the Securities
Act and enter into an agreement, in form and substance satisfactory to Dealer,
substantially in the form of an underwriting agreement for a registered
secondary offering; provided, however, that if Dealer, in its sole reasonable discretion,
is not satisfied with access to due diligence materials, the results of its due
diligence investigation, or the procedures and documentation for the registered
offering referred to above, then clause (ii) or clause (iii) of this
paragraph shall apply at the election of Counterparty, (ii) in order to
allow Dealer to sell the Restricted Shares in a private placement, enter into a
private placement agreement substantially similar to private placement purchase
agreements customary for private placements of equity securities for an
issuance of a similar size, in form and substance satisfactory to Dealer (in
which case, the Calculation Agent shall make any adjustments to the terms of
this Transaction that are necessary, in its reasonable judgment, to compensate
Dealer for any discount from the public market price of the Shares incurred on
the sale of Restricted Shares in a private placement for  issuance of a similar size), or (iii) purchase
the Restricted Shares from Dealer at the Reference Price on such Exchange
Business Days, and in the amounts, requested by Dealer.

 

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

 

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

 

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

 

19

 

(q)                               Securities Contract; Swap Agreement.  The parties
hereto intend for: (a) the Transaction to be a “securities contract” and a
“swap agreement” as defined in the Bankruptcy Code (Title 11 of the United
States Code) (the “Bankruptcy Code”),
and the parties hereto to be entitled to the protections afforded by, among
other Sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of
the Bankruptcy Code; (b) a party’s right to liquidate the Transaction and
to exercise any other remedies upon the occurrence of any Event of Default
under the Agreement with respect to the other party to constitute a “contractual
right” as described in the Bankruptcy Code; and (c) each payment and
delivery of cash, securities or other property hereunder to constitute a “margin
payment” or “settlement payment” and a “transfer” as defined in the Bankruptcy
Code.

 

(r)                                  Notice of Merger
Consideration. Counterparty
covenants and agrees that, as promptly as practicable following the public
announcement of any consolidation, merger and binding share exchange to which
Counterparty is a party, or any sale of all or substantially all of
Counterparty’s assets, in each case pursuant to which the Shares will be
converted into cash, securities or other property, Counterparty shall notify
Dealer in writing of the types and amounts of consideration that holders of
Shares have elected to receive upon consummation of such transaction or event
(the date of such notification, the “Consideration Notification
Date”); provided that
in no event shall the Consideration Notification Date be later than the date on
which such transaction or event is consummated.

 

(s)                                Receipt or Delivery of Cash. For the avoidance of doubt, other
than payment of the Premium by Counterparty, nothing in this Confirmation shall
be interpreted as requiring Counterparty to cash settle this Transaction,
except in circumstances where such cash settlement is within Counterparty’s
control (including, without limitation, where Counterparty elects to receive or
deliver cash, or where Counterparty fails timely to elect the Share Termination
Alternative) or in those circumstances in which holders of the Shares would
also receive cash.

 

(t)                                  Early Unwind. (i) In the event the sale of the “Option Securities” (as defined
in the Underwriting Agreement) is not consummated with the Underwriters for any
reason, or if Counterparty fails to deliver to Dealer opinions of counsel as
required pursuant to Section 9(a), in each case by the close of business in New
York on the Premium Payment Date, or such later date as agreed upon by the
parties (the Premium Payment Date or such later date the “Early
Unwind Date”),  the
Transaction shall automatically terminate (the “Early Unwind”),  on the Early Unwind Date and (i)
the Transaction and all of the respective rights and obligations of Dealer and Counterparty
under the Transaction shall be cancelled and terminated and (ii) each party
shall be released and discharged by the other party from and agrees not to make
any claim against the other party with respect to any obligations or
liabilities of the other party arising out of and to be performed in connection
with the Transaction either prior to or after the Early Unwind Date; provided that Counterparty shall reimburse
Dealer for any costs or expenses (including market losses) relating to the
unwinding of its hedging activities in connection with the Transaction
(including any loss or cost incurred as a result of terminating, liquidating,
obtaining or reestablishing any hedge or related trading position of Dealer or
one or more of its affiliates in connection with the Transaction). The amount
of any such reimbursement shall be determined by Dealer in its sole good faith
discretion. Dealer shall notify Counterparty of such amount and Counterparty
shall pay such amount in immediately available funds on the Early Unwind
Date.  Each of Dealer and Counterparty
represent and acknowledge to the other that, subject to the proviso included in
this Section, upon an Early Unwind, all obligations with respect to the
Transaction shall be deemed fully and finally discharged.

 

(ii)  If an amount is payable by Counterparty to Dealer pursuant
to Section 9(t)(i) (a “Reimbursement Obligation”),
Counterparty shall have the right, in its sole discretion, to satisfy any such
Reimbursement Obligation by delivering to Dealer, on the Exchange Business Day
immediately following the Early Unwind Date, the Early Unwind Shares (as
defined below) in satisfaction of such Reimbursement Obligation in the manner
reasonably requested by Dealer free of payment. 
The “Early Unwind Shares” shall be a
number of Shares equal to the Reimbursement Obligation otherwise payable under Section 9(t)(i) divided by the value to Dealer 

 

20

 

per Share on the date such Shares are to be delivered as Early Unwind Shares
(the “Early  Unwind Share
Price”), as determined by the Calculation Agent in its discretion
using commercially reasonable means, together with cash in lieu of any
fractional Shares based on the Early Unwind Share Price.  The Calculation Agent shall notify
Counterparty of  the Early Unwind Share
Price at the time of notification of the Reimbursement Obligation.  If such Early Unwind Shares are Restricted
Shares as set forth in Section 9(m), the Early Unwind Share Price may
reflect, in the Calculation Agent’s judgment, a discount applicable to such
Early Unwind Shares.  If such Early
Unwind Shares are not Restricted Shares as set forth in Section 9(m), the
Early Unwind Price shall be Relevant Price on the Early Unwind Date.  Counterparty shall give irrevocable
telephonic notice, confirmed in writing within one Scheduled Trading Day, to
Dealer of its election to satisfy any Reimbursement Obligation by delivery of
Early Unwind Shares pursuant to this Section no later than 6:00 p.m.
New York local time on the Early Unwind Date.

 

(u)                               Maximum Share Delivery.  Notwithstanding any other provision of this
Confirmation or the Agreement, in no event will Counterparty be required to
deliver more than two times the Number of Shares in the aggregate to Dealer
pursuant to Section 9(t).  In the
event Counterparty shall not have delivered the full number of Shares otherwise
applicable as a result of the foregoing sentence (such deficit, the “Deficit Shares”), Counterparty shall be continually
obligated to deliver, from time to time until the full number of Deficit Shares
have been delivered pursuant to this Section, Shares when, and to the extent,
that (i) Shares are repurchased, acquired or otherwise received by
Counterparty or any of its subsidiaries after the Trade Date (whether or not in
exchange for cash, fair value or any other consideration), (ii) authorized
and unissued Shares reserved for issuance in respect of other transactions
prior to such date which prior to the relevant date become no longer so
reserved and (iii) Counterparty additionally authorizes any unissued
Shares that are not reserved for other transactions.  Counterparty shall immediately notify Dealer
of the occurrence of any of the foregoing events (including the number of
Shares subject to clause (i), (ii) or (iii) and the corresponding
number of Shares to be delivered) and promptly deliver the Applicable
Percentage of the aggregate number of such Shares thereafter.

 

(v)                               Payment by Counterparty. In the
event that (i) an Early Termination Date occurs or is designated with
respect to the Transaction as a result of a Termination Event or an Event of
Default (other than an Event of Default arising under Section 5(a)(ii) or
5(a)(iv) of the Agreement) and, as a result, Counterparty owes to Dealer
pursuant to Section 6(d)(ii) of the Agreement an amount calculated
under Section 6(e) of the Agreement, or (ii) Counterparty owes
to Dealer, pursuant to Section 12.7 or Section 12.9 of the Equity
Definitions (including, for the avoidance of doubt, any amount payable in
connection with an Extraordinary Event), an amount calculated under Section 12.8
of the Equity Definitions, such amount shall be deemed to be zero.

 

(w)                             Regulatory Provisions. The time of
dealing for the Transaction will be confirmed by Dealer upon written request by
Counterparty.  The Agent will furnish to
Counterparty upon written request a statement as to the source and amount of
any remuneration received or to be received by the Agent in connection with the
Transaction.

 

21

 

Counterparty hereby agrees to
check this Confirmation and to confirm that the foregoing correctly sets forth
the terms of the Transaction by signing in the space provided below and
returning to Dealer a facsimile of the fully-executed Confirmation to Dealer at
646-758-9319 (Attention: Structured Equity Derivatives
Documentation Group).  Originals shall be provided for your
execution upon your request.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  BARCLAYS CAPITAL Inc., acting solely as

  Agent in connection with this Transaction

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and confirmed

  	
   

  
	
  as of the Trade Date:

  	
   

  
	
   

  	
   

  
	
  Take-Two Interactive Software, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  
	
  Name:Exhibit 10.5

 

EXECUTION VERSION

 

JPMorgan Chase Bank, National Association

P.O. Box 161

60 Victoria Embankment

London EC4Y 0JP

England

 

May 28, 2009

 

To: Take-Two Interactive Software, Inc.

622
Broadway

New
York, New York

Attention:
Treasurer

Telephone No.:  (646) 536-2842

Facsimile
No.:   (646) 941-3566

 

Re:
Warrants

 

The
purpose of this letter agreement (this “Confirmation”)
is to confirm the terms and conditions of the Warrants issued by Take-Two
Interactive Software, Inc. (“Company”) to
JPMorgan  Chase Bank, National Association,
London Branch (“Dealer”) as of the Trade Date
specified below (the “Transaction”).  This letter agreement constitutes a
“Confirmation” as referred to in the ISDA Master Agreement specified
below.  This Confirmation shall replace any
previous agreements and serve as the final documentation for this Transaction.

 

The
definitions and provisions contained in the 2002 ISDA Equity Derivatives
Definitions (the “Equity Definitions”),
as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”), are incorporated into this
Confirmation. In the event of any inconsistency between the Equity Definitions
and this Confirmation, this Confirmation shall govern.  This Transaction shall be deemed to be a
Share Option Transaction within the meaning set forth in the Equity
Definitions.

 

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

 

1.                                       This
Confirmation evidences a complete and binding agreement between Dealer and
Company as to the terms of the Transaction to which this Confirmation
relates.  This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the
2002 ISDA Master Agreement (the “Agreement”) as
if Dealer and Company had executed an agreement in such form (but without any
Schedule except for (i) the election of the laws of the State of New York
as the governing law (without
reference to choice of law doctrine) and (ii) the election that Section 5(a)(v) of
the Agreement shall not apply to either party) on the Trade Date.  In the event of any inconsistency between
provisions of that Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction to which this Confirmation relates.  The parties hereby agree that no Transaction
other than the Transaction to which this Confirmation relates shall be governed
by the Agreement.

 

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

 

JPMorgan Chase Bank, National Association 

Organised under the laws of the United States as a National Banking Association

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

 

 

General Terms:

 

	
  Trade Date:

  	
   

  	
  May 28, 2009

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  The third Exchange Business Day immediately prior to the Premium
  Payment Date

  
	
   

  	
   

  	
   

  
	
  Warrants:

  	
   

  	
  Equity
  call warrants, each giving the holder the right to purchase one Share at the
  Strike Price, subject to the Settlement Terms set forth below. For the
  purposes of the Equity Definitions, each reference to a Warrant herein shall
  be deemed to be a reference to a Call Option.

  
	
   

  	
   

  	
   

  
	
  Warrant Style:

  	
   

  	
  European

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Company

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  The
  common stock of Company, par value USD 0.01 per Share (Exchange symbol
  “TTWO”)

  
	
   

  	
   

  	
   

  
	
  Number of Warrants:

  	
   

  	
  [    ],
  subject to adjustment as provided herein.

  
	
   

  	
   

  	
   

  
	
  Warrant Entitlement:

  	
   

  	
  One Share per Warrant

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  USD
  14.9450

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD
  [     ]

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  June 3, 2009

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  The NASDAQ Global Select
  Market

  
	
   

  	
   

  	
   

  
	
  Related Exchange(s):

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  The
  Valuation Time

  
	
   

  	
   

  	
   

  
	
  Expiration Date(s):

  	
   

  	
  Each
  Scheduled Trading Day during the period from and including the First
  Expiration Date and to and including the 75th Scheduled Trading Day following the First
  Expiration Date shall be an “Expiration Date” for a number of Warrants equal
  to the Daily Number of Warrants on such date; provided that, notwithstanding anything to the contrary in
  the Equity Definitions, if any such date is a Disrupted Day, the Calculation
  Agent shall make adjustments, if applicable, to the Daily Number of Warrants
  or shall reduce such Daily Number of Warrants to zero for which such day
  shall be an Expiration Date and shall designate a Scheduled Trading Day or a
  number of Scheduled Trading Days as the Expiration Date(s) for the
  remaining Daily Number of Warrants or a portion thereof for the originally
  scheduled Expiration Date; and provided  further that if such Expiration Date has not occurred
  pursuant to this clause as of the eighth Scheduled Trading Day following the
  last scheduled 

  

 

2

 

	
   

  	
   

  	
  Expiration
  Date under this Transaction, the Calculation Agent shall have the right to
  declare such Scheduled Trading Day to be the final Expiration Date and the
  Calculation Agent shall determine its good faith estimate of the fair market
  value for the Shares as of the Valuation Time on that eighth Scheduled
  Trading Day or on any subsequent Scheduled Trading Day, as the Calculation
  Agent shall determine using commercially reasonable means.

  
	
   

  	
   

  	
   

  
	
  First Expiration Date:

  	
   

  	
  August 30, 2014 (or
  if such day is not a Scheduled Trading Day, the next following Scheduled
  Trading Day), subject to Market Disruption Event below.

  
	
   

  	
   

  	
   

  
	
  Daily Number of Warrants:

  	
   

  	
  For any Expiration Date,
  the Number of Warrants that have not expired or been exercised as of such
  day, divided by the remaining number of
  Expiration Dates (including such day), rounded down to the nearest whole
  number, subject to adjustment pursuant to the provisos to “Expiration
  Date(s)”.

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  Applicable; and means that
  for each Expiration Date, a number of Warrants equal to the Daily Number of
  Warrants (as adjusted pursuant to the terms hereof) for such Expiration Date
  will be deemed to be automatically exercised.

  
	
   

  	
   

  	
   

  
	
  Market Disruption Event:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Valuation:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Valuation Time:

  	
   

  	
  Scheduled
  Closing Time; provided that if the principal
  trading session is extended, the Calculation Agent shall determine the
  Valuation Time in its reasonable discretion.

  
	
   

  	
   

  	
   

  
	
  Valuation Date:

  	
   

  	
  Each
  Exercise Date.

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Method:

  	
   

  	
  Net
  Share Settlement.

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  On
  the relevant Settlement Date, Company shall deliver to Dealer the Share
  Delivery Quantity of Shares for such Settlement Date to the account specified
  hereto free of payment through the Clearance System.

  
	
   

  	
   

  	
   

  
	
  Share Delivery Quantity:

  	
   

  	
  For
  any Settlement Date, a number of Shares, as calculated by the Calculation
  Agent, equal to the Net Share Settlement Amount for such Settlement Date divided by the Settlement Price on the Valuation Date in
  respect of such Settlement Date, rounded down to the nearest whole number plus any Fractional Share Amount.

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement Amount:

  	
   

  	
  For
  any Settlement Date, an amount equal to the product of (i) the Number of
  Warrants exercised or deemed exercised on the 

  

 

3

 

	
   

  	
   

  	
  relevant
  Exercise Date, (ii) the Strike Price
  Differential for such Settlement Date and (iii) the Warrant Entitlement.

  
	
   

  	
   

  	
   

  
	
  Settlement Price:

  	
   

  	
  For
  any Valuation Date, the per Share volume-weighted average price as displayed
  under the heading “Bloomberg VWAP” on Bloomberg page TTWO.UQ
  <equity> AQR (or any successor thereto) in respect of the period from
  the scheduled opening time of the Exchange to the Scheduled Closing Time on
  such Valuation Date (or if such volume-weighted average price is unavailable,
  the market value of one Share on such Valuation Date, as determined by the
  Calculation Agent). Notwithstanding the foregoing, if (i) any
  Expiration Date is a Disrupted Day and (ii) the Calculation Agent
  determines that such Expiration Date shall be an Expiration Date for fewer
  than the Daily Number of Warrants, as described above, then the Settlement
  Price for the relevant Valuation Date shall be the volume-weighted average
  price per Share on such Valuation Date on the Exchange, as determined by the
  Calculation Agent based on such sources as it deems appropriate using a
  volume-weighted methodology, for the portion of such Valuation Date for which
  the Calculation Agent determines there is no Market Disruption Event.

  
	
   

  	
   

  	
   

  
	
  Settlement Date(s):

  	
   

  	
  As
  determined in reference to Section 9.4 of the Equity Definitions,
  subject to Section 9(k)(i) hereof.

  
	
   

  	
   

  	
   

  
	
  Other
  Applicable Provisions:

  	
   

  	
  The
  provisions of Sections 9.1(c), 9.8, 9.9, 9.11, 9.12 and 10.5 of the Equity
  Definitions will be applicable, except that all references in such provisions
  to “Physically-settled” shall be read as references to “Net Share Settled.”
  “Net Share Settled” in relation to any Warrant means that Net Share
  Settlement is applicable to that Warrant.

  
	
   

  	
   

  	
   

  
	
  Representation
  and Agreement:

  	
   

  	
  Notwithstanding
  Section 9.11 of the Equity Definitions, the parties acknowledge that any
  Shares delivered to Dealer may be, upon delivery, subject to restrictions and
  limitations arising from Company’s status as issuer of the Shares under
  applicable securities laws.

  
	
   

  	
   

  	
   

  
	
  3.
  Additional Terms applicable to the Transaction:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Adjustments applicable to the Warrants:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation
  Agent Adjustment. For the avoidance of doubt, in making any adjustments under
  the Equity Definitions, the Calculation Agent may make adjustments, if any,
  to any one or more of the Strike Price, the Number of Warrants, the Daily
  Number of Warrants and the Warrant Entitlement. Notwithstanding the
  foregoing, any cash dividends or distributions on the Shares, whether or not extraordinary,
  shall be governed by Section 9(f) of this Confirmation in lieu of
  Article 10 or Section 11.2(c) of the Equity Definitions.

  

 

4

 

	
  Extraordinary
  Events applicable to the Transaction:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New Shares:

  	
   

  	
  Section 12.1(i) of the Equity Definitions is hereby amended
  (a) by deleting the text in clause (i) thereof in its entirety
  (including the word “and” following clause (i)) and replacing it with the
  phrase “publicly quoted, traded or listed (or whose related depositary
  receipts are publicly quoted, traded or listed) on any of the New York Stock
  Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or
  their respective successors)” and (b) by inserting immediately prior to
  the period the phrase “and (iii) of an entity or person organized under
  the laws of the United States, any State thereof or the District of Columbia
  that also becomes Company under the Transaction following such Merger Event
  or Tender Offer”.

  
	
   

  	
   

  	
   

  
	
  Consequence of Merger Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Merger Event:

  	
   

  	
  Applicable; provided that if an event
  occurs that constitutes both a Merger Event under
  Section 12.1(b) of the Equity Definitions and an Additional
  Termination Event under Section 9(h)(ii)(B) of this Confirmation, Dealer may elect, in its
  commercially reasonable judgment, whether the provisions of
  Section 12.1(b) of the Equity Definitions or
  Section 9(h)(ii)(B) will apply.

  
	
   

  	
   

  	
   

  
	
  Share-for-Share:

  	
   

  	
  Modified
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Share-for-Other:

  	
   

  	
  Cancellation
  and Payment (Calculation Agent Determination)

  
	
   

  	
   

  	
   

  
	
  Share-for-Combined:

  	
   

  	
  Cancellation
  and Payment (Calculation Agent Determination); provided
  that Dealer may elect, in its commercially reasonable judgment, Component
  Adjustment (Calculation Agent Determination).

  
	
   

  	
   

  	
   

  
	
  Consequence of Tender Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable;
  provided however that if an event
  occurs that constitutes both a Tender Offer under
  Section 12.1(d) of the Equity Definitions and Additional
  Termination Event under Section 9(h)(ii)(A) of this Confirmation,
  Dealer may elect, in its commercially reasonable judgment, whether the
  provisions of Section 12.3 of the Equity Definitions or
  Section 9(h)(ii)(A) will apply.

  
	
   

  	
   

  	
   

  
	
  Share-for-Share:

  	
   

  	
  Modified
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Share-for-Other:

  	
   

  	
  Modified
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Share-for-Combined:

  	
   

  	
  Modified
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Nationalization, Insolvency or Delisting:

  	
   

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

  

 

5

 

	
   

  	
   

  	
  the
  Shares are immediately re-listed, re-traded or re-quoted on any of the New
  York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market
  (or their respective successors), such exchange or quotation system shall
  thereafter be deemed to be the Exchange.

  
	
   

  	
   

  	
   

  
	
  Announcement Event:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Announcement Date:

  	
   

  	
  The
  definition of “Announcement Date” in Section 12.1 of the Equity
  Definitions shall be amended by (i) replacing the words “a firm” with
  the word “any” in the second and fourth lines thereof, (ii) replacing
  the word “leads to the” in the third and the fifth lines thereof with the
  words “, if completed, would lead to a”, (iii) replacing the words
  “voting shares” in the fifth line thereof with the word “Shares”,
  (iv) inserting the words “by any entity” after the word “announcement”
  in the second and the fourth lines thereof, (v) inserting the words “or
  to explore the possibility of engaging in” after the words “engage in” in the
  second line thereto and (vi) inserting the words “or to explore the
  possibility of purchasing or otherwise obtaining” after the word “obtain” in
  the fourth line thereto.

  
	
   

  	
   

  	
   

  
	
  Additional
  Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change
  in Law:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(ii)(X) of the Equity Definitions is hereby amended
  by replacing the word “Shares” with the phrase “Hedge Positions.”

  
	
   

  	
   

  	
   

  
	
  Failure
  to Deliver:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Insolvency
  Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging
  Disruption:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(v) of the Equity Definitions is hereby modified by
  inserting the following two phrases at the end of such Section:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “For the avoidance of doubt, the term “equity price
  risk” shall be deemed to include, but shall not be limited to, stock price
  and volatility risk. And, for the further avoidance of doubt, any such
  transactions or assets referred to in phrases (A) or (B) above must
  be available on commercially reasonable pricing terms.”

  
	
   

  	
   

  	
   

  
	
  Increased
  Cost of Hedging:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Loss
  of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Maximum
  Stock Loan Rate:

  	
   

  	
  [     
  ] bps

  
	
   

  	
   

  	
   

  
	
  Increased
  Cost of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Initial
  Stock Loan Rate:

  	
   

  	
  [      
  ] bps

  
	
   

  	
   

  	
   

  
	
  Hedging
  Party:

  	
   

  	
  Dealer for all applicable Additional Disruption
  Events

  

 

6

 

	
  Determining Party:

  	
   

  	
  Dealer for all applicable Extraordinary Events

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and Acknowledgments

  	
   

  	
   

  
	
  Regarding
  Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  4.
  Calculation Agent:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  5.
  Account Details:

  	
   

  	
   

  

 

(a)                                      Account for
payments to Company:

 

[       ]

 

ABA:  [       ]

Acct:   Take-Two Interactive Software Inc.

Acct No.:  [       ]

 

Account for delivery of Shares from Company:

 

To be provided by
Company.

 

(b)                                     Account for payments to Dealer:

 

[       ]

ABA:  [       ]

Favour: [       ]

A/C:  [       ]

 

Account for delivery of Shares to Dealer:

 

[       ]

 

6. Offices:

 

The Office of Company for the Transaction is:  Inapplicable, Company is not a Multibranch
Party.

 

The Office of Dealer for the Transaction is:
London

 

JPMorgan Chase Bank, National Association

London
Branch

P.O. Box
161

60
Victoria Embankment

London
EC4Y 0JP

England

 

7. Notices: For purposes of this Confirmation:

 

(a)                                  Address for
notices or communications to Company:

Take-Two
Interactive Software, Inc.

622
Broadway

New
York, New York

Attention:
Treasurer

Telephone
No.:      (646) 536-2842

Facsimile
No.:              (646) 941-3566

 

7

 

(b)                                 Address for
notices or communications to Dealer:

 

JPMorgan Chase Bank,
National Association

4 New York Plaza, Floor 18

New York, NY  10004-2413

Attention: 
Mariusz
Kwasnik

Title: 
Operations Analyst

EDG Corporate Marketing

Telephone No:               (212) 623-7223

Facsimile No:                       (212) 623-7719

 

8.  Representations and
Warranties of Company

 

The representations and warranties made by Company pursuant to the
Underwriting Agreement (the “Underwriting Agreement”)
dated as of May 28, 2009 between Company and J.P. Morgan Securities Inc.
and Barclays Capital Inc., as representative of the Underwriters party thereto,
on the “Closing Date” (as defined in the Underwriting Agreement) are true and
correct and are hereby deemed to be repeated to Dealer as if set forth
herein.  Company hereby further
represents and warrants to Dealer that:

 

(a)                                   Company has all
necessary corporate power and authority to execute, deliver and perform its
obligations in respect of this Transaction; such execution, delivery and
performance have been duly authorized by all necessary corporate action on
Company’s part; and this Confirmation has been duly and validly executed and
delivered by Company and constitutes its valid and binding obligation,
enforceable against Company in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws affecting creditors’ rights and remedies generally, and subject,
as to enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity) and except that
rights to indemnification and contribution hereunder may be limited by federal
or state securities laws or public policy relating thereto.

 

(b)                                  Neither the
execution and delivery of this Confirmation nor the incurrence or performance
of obligations of Company hereunder will conflict with or result in a breach of
the certificate of incorporation or by-laws (or any equivalent documents) of
Company, or any applicable law or regulation, or any order, writ, injunction or
decree of any court or governmental authority or agency, or any agreement or
instrument to which Company or any of its subsidiaries is a party or by which
Company or any of its subsidiaries is bound or to which Company or any of its
subsidiaries is subject, or constitute a default under, or result in the
creation of any lien under, any such agreement or instrument.

 

(c)                                   No consent, approval, authorization, or order of, or
filing with, any governmental agency or body or any court is required in
connection with the execution, delivery or performance by Company of this
Confirmation, except such as have been obtained or made and such as may be
required under the Securities Act of 1933, as amended (the “Securities Act”) or state securities laws.

 

(d)                                  The Shares of Company initially issuable upon
exercise of the Warrant by the net share settlement method (the “Warrant Shares”) have been reserved for issuance by all
required corporate action of Company. 
The Warrant Shares have been duly authorized and, when delivered against
payment therefor (which may include Net Share Settlement in lieu of cash) and
otherwise as contemplated by the terms of the Warrant following the exercise of
the Warrant in accordance with the terms and conditions of the Warrant, will be
validly issued, fully-paid and non-assessable, and the issuance of the Warrant
Shares will not be subject to any preemptive or similar rights.

 

(e)                                   Company is not
and will not be required to register as an “investment company” as such term is
defined in the Investment Company Act of 1940, as amended.

 

8

 

(f)                                     Company is an “eligible contract participant” (as such
term is defined in Section 1a(12) of the Commodity Exchange Act, as
amended (the “CEA”)) because one or more of the
following is true:

 

Company is a corporation, partnership,
proprietorship, organization, trust or other entity and:

 

(A)                                Company has total assets in excess of USD 10,000,000;

 

(B)                                  the obligations of Company hereunder are guaranteed, or otherwise
supported by a letter of credit or keepwell, support or other agreement, by an
entity of the type described in Section 1a(12)(A)(i) through (iv),
1a(12)(A)(v)(I), 1a(12)(A)(vii) or 1a(12)(C) of the CEA; or

 

(C)                                  Company has a
net worth in excess of USD 1,000,000 and has entered into this Agreement in
connection with the conduct of Company’s business or to manage the risk
associated with an asset or liability owned or incurred or reasonably likely to
be owned or incurred by Company in the conduct of Company’s business.

 

(g)                                  Company and
each of its affiliates is not, on the date hereof, in possession of any
material non-public information with respect to Company.

 

9.  Other Provisions:

 

(a)                                   Opinions.  Company shall deliver to Dealer, on or prior
to the Premium Payment Date, an opinion of counsel, dated as of the Premium
Payment Date, with respect to the matters set forth in Sections 8(a) through
(d) of this Confirmation.  Delivery
of such opinion to Dealer shall be a condition precedent for the purpose of Section 2(a)(iii) of
the Agreement with respect to each obligation of Dealer under Section 2(a)(i) of
the Agreement.

 

(b)                                  Repurchase Notices. 
Company shall, on any day on which Company effects any repurchase of
Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase Notice”) on such day if following such
repurchase, the number of outstanding Shares on such day, subject to any
adjustments provided herein, is (i) less than 76 million (in the case of
the first such notice) or (ii) thereafter more than 4 million less than
the number of Shares included in the immediately preceding Repurchase
Notice.  Company agrees to indemnify and
hold harmless Dealer and its affiliates and their respective officers,
directors, employees, affiliates, advisors, agents and controlling persons
(each, an “Indemnified Person”)
from and against any and all losses (including losses relating to Dealer’s
hedging activities as a consequence of becoming, or of the risk of becoming, a Section 16
“insider”, including without limitation, any forbearance from hedging
activities or cessation of hedging activities and any losses in connection
therewith with respect to this Transaction), claims, damages, judgments,
liabilities and expenses (including reasonable attorney’s fees), joint or
several, which an Indemnified Person actually may become subject to, as a
result of Company’s failure to provide Dealer with a Repurchase Notice on the
day and in the manner specified in this paragraph, and to reimburse, within 30 days,
upon written request, each of such Indemnified Persons for any reasonable legal
or other expenses incurred in connection with investigating, preparing for,
providing testimony or other evidence in connection with or defending any of
the foregoing.  If any suit, action,
proceeding (including any governmental or regulatory investigation), claim or
demand shall be brought or asserted against the Indemnified Person, such
Indemnified Person shall promptly notify Company in writing, and Company, upon
request of the Indemnified Person, shall retain counsel reasonably satisfactory
to the Indemnified Person to represent the Indemnified Person and any others
Company may designate in such proceeding and shall pay the fees and expenses of
such counsel related to such proceeding. 
Company 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, Company agrees to indemnify any
Indemnified Person from and against any loss or liability by 

 

9

 

reason of such
settlement or judgment.  Company shall
not, 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 on terms reasonably satisfactory
to such Indemnified Person.  If the
indemnification provided for in this paragraph is unavailable to an Indemnified
Person or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then Company under such paragraph, in lieu of indemnifying
such Indemnified Person thereunder, shall contribute to the amount paid or
payable by such Indemnified Person as a result of such losses, claims, damages
or liabilities.  The remedies provided
for in this paragraph are not exclusive and shall not limit any rights or
remedies which may otherwise be available to any Indemnified Person at law or
in equity.  The indemnity and
contribution agreements contained in this paragraph shall remain operative and
in full force and effect regardless of the termination of this Transaction.

 

(c)            Regulation M.  Company is not on the date hereof engaged in
a distribution, as such term is used in Regulation M under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”),
of any securities of Company, other than the distribution of USD 120,000,000
principal amount of 4.375% convertible senior notes due 2014 being made on the
date hereof.  Company shall not, until
the second Scheduled Trading Day immediately following the Effective Date,
engage in any such distribution.

 

(d)                                  No Manipulation. 
Company is not entering into this Transaction to create actual or
apparent trading activity in the Shares (or any security convertible into or
exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the
Shares) or otherwise in violation of the Exchange Act.

 

(e)                                   Transfer or Assignment. 
Company may not transfer any of its rights or obligations under this
Transaction without the prior written consent of Dealer. Dealer may, without
Company’s consent, transfer or assign all or any part of its rights or
obligations under this Transaction to any third party. If at any time at which (1) the
Section 16 Percentage exceeds 7.5%, (2) the Warrant Equity Percentage
exceeds 14.5%, or (3) the Share Amount exceeds the Post-Effective Limit
(if any applies), Dealer is unable after using its commercially reasonable
efforts to effect a transfer or assignment of Warrants to a third party on
pricing terms reasonably acceptable to Dealer and within a time period
reasonably acceptable to Dealer such that (1) the Section 16
Percentage will be equal to or less than 7.5%, (2) the Warrant Equity
Percentage will be equal to or less than 14.5%, and (3) the Share Amount
will be equal to or less than any such Post-Effective Limit, then Dealer may
designate any Exchange Business Day as an Early Termination Date with respect
to a portion of the Transaction (the “Terminated
Portion”), such that following such partial termination (1) the
Section 16 Percentage will be equal to or less than 7.5%, (2) the
Warrant Equity Percentage will be equal to or less than 14.5%, and (3) the
Share Amount will be equal to or less than such Post-Effective Limit.  In the event that Dealer so designates an
Early Termination Date with respect to a Terminated Portion, a payment shall be
made pursuant to Section 6 of the Agreement as if (1) an Early
Termination Date had been designated in respect of a Transaction having terms
identical to this Transaction and a Number of Warrants equal to the number of
Warrants underlying the Terminated Portion, (2) Company shall be the sole
Affected Party with respect to such partial termination and (3) the
Terminated Portion shall be the sole Affected Transaction (and, for the
avoidance of doubt, the provisions of Section 9(j) shall apply to any
amount that is payable by Company to Dealer pursuant to this sentence as if
Company was not the Affected Party).  The
“Section 16 Percentage” as of
any day is the fraction, expressed as a percentage, (A) the numerator of
which is the number of Shares that Dealer and each person subject to
aggregation of Shares with Dealer under Section 13 or Section 16 of
the Exchange Act and rules promulgated thereunder (the “Dealer Group”) directly or indirectly beneficially own (as
defined under Section 13 or Section 16 of the Exchange Act and rules promulgated
thereunder) and (B) the denominator of which is the number of Shares
outstanding.  The “Warrant
Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the sum of (x) the product
of the Number of Warrants and the Warrant Entitlement and (y) and 

 

10

 

the aggregate
number of Shares underlying any other warrants purchased by Dealer from
Company, and (B) the denominator of which is the number of Shares
outstanding.  The “Share Amount”
as of any day is the number of Shares that Dealer and any person whose
ownership position would be aggregated with that of Dealer (Dealer or any such
person, a “Dealer Person”) under any law, rule, regulation or regulatory order
that for any reason becomes applicable to ownership of Shares after the Trade
Date (“Applicable Laws”), owns,
beneficially owns, constructively owns, controls, holds the power to vote or
otherwise meets a relevant definition of ownership of under the Applicable Laws,
as determined by Dealer in its reasonable discretion. The “Post-Effective
Limit” means (x) the minimum number of Shares that would give
rise to reporting or registration obligations or other requirements (including
obtaining prior approval from any person or entity) of a Dealer Person, or
would result in an adverse effect on a Dealer Person, under the Applicable
Laws, as determined by Dealer in its reasonable discretion, minus (y) 1% of the number of Shares
outstanding. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any
Shares or other securities to or from Company, Dealer may designate any of its
affiliates to purchase, sell, receive or deliver such Shares or other
securities and otherwise to perform Dealer’s obligations in respect of this
Transaction and any such designee may assume such obligations.  Dealer shall be discharged of its obligations
to Company to the extent of any such performance.

 

(f)                                     Dividends.  If at any time during the period from and including
the Effective Date, to and including the Expiration Date, an ex-dividend date
for a cash dividend occurs with respect to the Shares (an “Ex-Dividend
Date”), then the Calculation Agent will adjust any of the Strike
Price, Number of Warrants and/or Daily
Number of Warrants to preserve the fair value of the Warrants to Dealer
after taking into account such dividend.

 

(g)                                  Role of
Agent.  Each party agrees
and acknowledges that (i) J.P. Morgan Securities Inc., an affiliate of Dealer (“JPMSI”), has acted solely as agent and not as principal with
respect to this Transaction and (ii) JPMSI has no obligation or liability,
by way of guaranty, endorsement or otherwise, in any manner in respect of this
Transaction (including, if applicable, in respect of the settlement thereof).
Each party agrees it will look solely to the other party (or any guarantor in
respect thereof) for performance of such other party’s obligations under this
Transaction.

 

(h)                                  Additional Provisions.

 

(i)  Amendments to the
Equity Definitions:

 

(A)                             Section 11.2(a) of
the Equity Definitions is hereby amended by deleting the words “a diluting or
concentrative” and replacing them with the words “an”; and adding the phrase
“or Warrants” at the end of the sentence.

 

(B)                               Section 11.2(c) of
the Equity Definitions is hereby amended by (x) replacing the words “a
diluting or concentrative” with “an”, (y) adding the phrase “or Warrants”
after the words “the relevant Shares” in the same sentence and (z) deleting
the phrase “(provided that no adjustments will be made to account solely for
changes in volatility, expected dividends, stock loan rate or liquidity
relative to the relevant Shares)” and replacing it with the phrase “(and, for
the avoidance of doubt, adjustments may be made to account solely for changes
in volatility, expected dividends, stock loan rate or liquidity relative to the
relevant Shares).”

 

(C)                               Section 11.2(e)(vii) of
the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative”
and replacing them with the word “a material”; and adding the phrase “or
Warrants” at the end of the sentence.

 

(D)                              Section 12.6(a)(ii) of
the Equity Definitions is hereby amended by (1) deleting from the fourth
line thereof the word “or” after the word “official” and inserting a comma
therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof
and inserting the following words therefor “or (C) at Dealer’s option, the
occurrence of any of the events

 

11

 

specified in Section 5(a)(vii) (1) through (9) of the
ISDA Master Agreement with respect to that Issuer.”

 

(E)                                Section 12.9(b)(iv) of
the Equity Definitions is hereby amended by:

 

(x)                            deleting (1) subsection
(A) in its entirety, (2) the phrase “or (B)” following subsection (A) and
(3) the phrase “in each case” in subsection (B); and

 

(y)                          deleting the phrase
“neither the Non-Hedging Party nor the Lending Party lends Shares in the amount
of the Hedging Shares or” in the penultimate sentence.

 

(F)                                Section 12.9(b)(v) of
the Equity Definitions is hereby amended by:

 

(x)                            adding the word “or”
immediately before subsection “(B)” and deleting the comma at the end of
subsection (A); and

 

(y)                          (1) deleting
subsection (C) in its entirety, (2) deleting the word “or” immediately
preceding subsection (C) and (3) deleting the penultimate sentence in its
entirety and replacing it with the sentence “The Hedging Party will determine
the Cancellation Amount payable by one party to the other.”

 

(ii)  Notwithstanding
anything to the contrary in this Confirmation, upon the occurrence of one of
the following events, with respect to this Transaction, (1) Dealer shall have the right
to designate such event an Additional Termination Event and designate an Early
Termination Date pursuant to Section 6(b) of the Agreement, and (2) Company
shall be deemed the sole Affected Party and the Transaction shall be deemed the
sole Affected Transaction:

 

(A)                             A “person” or “group”
within the meaning of Section 13(d) of the Exchange Act, other than
Company, its subsidiaries and its and their employee benefit plans, has become
the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under
the Exchange Act, of the common equity of Company representing more than 50% of
the voting power of such common equity.

 

(B)                               Consummation of (I) any
recapitalization, reclassification or change of the Shares (other than changes
resulting from a subdivision or combination) as a result of which the Shares
would be converted into, or exchanged for, stock, other securities, other
property or assets or (II) any share exchange, consolidation or merger of
Company pursuant to which the Shares will be converted into cash, securities or
other property or any sale, lease or other transfer in one transaction or a
series of transactions of all or substantially all of the consolidated assets
of Company and its subsidiaries, taken as a whole, to any person other than one
of Company’s subsidiaries; provided, however, that a transaction where the holders of all classes
of Company’s common equity immediately prior to such transaction that is a
share exchange, consolidation or merger own, directly or indirectly, more than
50% of all classes of common equity of the continuing or surviving corporation
or transferee or the parent thereof immediately after such event shall not
constitute an Additional Termination Event. 
Notwithstanding the foregoing, any transaction or transactions set forth
in this clause (B) shall not constitute an Additional Termination Event if
at least 90% of the consideration received or to be received by holders of the
Shares, excluding cash payments for fractional Shares, in connection with such
transaction or transactions consists of shares of common stock, American
Depository Receipts or American Depository Shares traded on the New York Stock
Exchange or the NASDAQ Global Market or which will be so traded when issued or
exchanged in connection with such transaction or transactions.

 

(C)                               (I) Company or any
of its subsidiary defaults (as principal or as guarantor or other surety) in
the payment of any principal of or premium or make-whole amount or interest on
any debt that is outstanding in an aggregate principal amount of at least
$10,000,000 beyond 

 

12

 

any period of grace provided with respect thereto (a “Monetary
Default”) or (II) Company or any of its subsidiaries fails to
perform or comply with any term of any evidence of any debt in an aggregate
outstanding principal amount of at least $10,000,000 or of any mortgage,
indenture or other agreement relating thereto or any other condition exists,
and as a consequence of such failure or condition such debt could (including
with the giving of notice or passage of time) or has become, or has been
declared, due and payable before its stated maturity or before its regularly
scheduled dates of payment, or (III) as a consequence of the occurrence or
continuation of any event or condition (other than the passage of time or the
right of the holder of debt to convert such debt into cash or cash and equity
interests), (x) Company or any of its subsidiaries has become obligated to
purchase or repay debt before its stated maturity or before its regularly
scheduled dates of payment in an aggregate outstanding principal amount of at
least $10,000,000, or (y) as a result of a Monetary Default, one or more
persons have the right to require Company or any of its subsidiaries so to
purchase or repay such debt.

 

(D)                              Dealer, despite using
commercially reasonable efforts, is unable or reasonably determines that it is
impractical or illegal, to hedge its exposure with respect to this Transaction
in the public market without registration under the Securities Act or as a
result of 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 Dealer).

 

(i)                                      No Collateral or Setoff. 
Notwithstanding
any provision of the Agreement or any other agreement between the parties to
the contrary, the obligations of Company hereunder are not secured by any
collateral.  Obligations under this
Transaction shall not be set off by Company against any other obligations of
the parties, whether arising under the Agreement, this Confirmation, under any
other agreement between the parties hereto, by operation of law or
otherwise.  Any provision in the
Agreement with respect to the satisfaction of Company’s payment obligations to
the extent of Dealer’s payment obligations to Company in the same currency and
in the same Transaction (including, without limitation Section 2(c) thereof)
shall not apply to Company and, for the avoidance of doubt, Company shall fully
satisfy such payment obligations notwithstanding any payment obligation to
Company by Dealer in the same currency and in the same Transaction. In
calculating any amounts under Section 6(e) of the Agreement,
notwithstanding anything to the contrary in the Agreement, (1) separate
amounts shall be calculated as set forth in such Section 6(e) with
respect to (a) this Transaction and (b) all other Transactions, and (2) such
separate amounts shall be payable pursuant to Section 6(d)(ii) of the
Agreement.  For the avoidance of doubt
and notwithstanding anything to the contrary provided in this Section 9(i),
in the event of bankruptcy or liquidation of either Company or Dealer neither
party shall have the right to set off any obligation that it may have to the
other party under this Transaction against any obligation such other party may
have to it, whether arising under the Agreement, this Confirmation or any other
agreement between the parties hereto, by operation of law or otherwise.

 

(j)                                      Alternative Calculations and
Payment on Early Termination and on Certain Extraordinary Events.  If, in respect of this Transaction, an amount is
payable by Company to Dealer, (i) pursuant
to Section 12.7 or Section 12.9 of the Equity Definitions, (ii) pursuant
to Section 6(d)(ii) of the Agreement or (iii) pursuant to Section 9(u) (a
“Payment Obligation”), Company shall
have the right, in its sole discretion, to satisfy any such Payment Obligation
by the Share Termination Alternative (as defined below) (except that Company
shall not make such an election in the event of a Nationalization, Insolvency,
Merger Event or Tender Offer in which the consideration to be paid to holders
of shares consists solely of cash or an Event of Default in which Company is
the Defaulting Party or a Termination Event in which Company is the Affected
Party, other than an Event of Default of the type described in Section 5(a)(iii),
(v), (vi), (vii) or (viii) of the Agreement or a Termination Event of
the type described in Section 5(b) of the Agreement, in each case
that resulted from an event or events outside Company’s control) and shall give
irrevocable telephonic notice to Dealer, confirmed in writing within one
Scheduled Trading Day, no later than 12:00 p.m. New York local time on the Merger Date, Tender Offer Date,
Announcement Date (in the case of a Nationalization, Insolvency or Delisting),
Early Termination Date or date of cancellation, or no 

 

13

 

later than 6:00  p.m. New
York local time on the Early Unwind Date, as applicable; provided that
if Company does not validly elect to satisfy its Payment Obligation by the Share Termination Alternative,
Dealer shall have the right to require Company to satisfy its Payment
Obligation by the Share Termination Alternative.  Notwithstanding the foregoing,
Company’s or Dealer’s right to elect satisfaction of a Payment
Obligation in the Share Termination Alternative as set forth in this clause
shall only apply to Transactions under this Confirmation and, notwithstanding
anything to the contrary in the Agreement, (1) separate amounts shall be
calculated with respect to (a) Transactions hereunder and (b) all
other Transactions under the Agreement, and (2) such separate amounts
shall be payable pursuant to Section 6(d)(ii) of the Agreement,
subject to, in the case of clause (a), Company’s Share Termination Alternative
right hereunder.

 

	
  Share Termination
  Alternative:

  	
   

  	
  If applicable, Company
  shall deliver to Dealer the Share Termination Delivery Property on the date
  (the “Share Termination Payment Date”) on
  which the Payment Obligation would otherwise be due pursuant to
  Section 12.7 or Section 12.9 of the Equity Definitions or
  Section 6(d)(ii) of the Agreement, or on the Exchange Business Day
  immediately following the date on which the Payment Obligation would
  otherwise be due pursuant to Section 9(u), as applicable, subject to
  paragraph (k)(i) below, in satisfaction, subject to paragraph
  (k)(ii) below, of the Payment Obligation in the manner reasonably
  requested by Dealer free of payment.

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery
  Property:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Unit
  Price:

  	
   

  	
  The value to Dealer of
  property contained in one Share Termination Delivery Unit on the date such
  Share Termination Delivery Units are to be delivered as Share Termination
  Delivery Property, as determined by the Calculation Agent in its discretion
  by commercially reasonable means. The Calculation Agent shall notify Company
  of such Share Termination Unit Price at the time of notification of the
  Payment Obligation. In the case of a Private Placement of Share Termination
  Delivery Units that are Restricted Shares (as defined below), as set forth in
  paragraph (k)(i) below, the Share Termination Unit Price shall be
  determined by the discounted price applicable to such Share Termination
  Delivery Units. In the case of a Registration Settlement of Share Termination
  Delivery Units that are Restricted Shares (as defined below) as set forth in
  paragraph (k)(ii) below, the Share Termination Unit Price shall be the
  Settlement Price on the Merger Date, the Tender Offer Date, the Announcement Date (in the case of a
  Nationalization, Insolvency or Delisting), the date of 

  

 

14

 

	
   

  	
   

  	
  cancellation,
  the Early Termination Date or the Early Unwind Date, as applicable.

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery
  Unit:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Inapplicable

  
	
   

  	
   

  	
   

  
	
  Other applicable
  provisions:

  	
   

  	
  If Share Termination
  Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.11, 9.12
  and 10.5 (as modified above) of the Equity Definitions will be applicable,
  except that all references in such provisions to “Physically-settled” shall
  be read as references to “Share Termination Settled” and all references to “Shares”
  shall be read as references to “Share Termination Delivery Units”. “Share
  Termination Settled” in relation to this Transaction means that Share
  Termination Alternative is applicable to this Transaction.

  

 

(k)                                   Registration/Private
Placement Procedures.  If,
in the reasonable opinion of Dealer, following any delivery of Shares or Share
Termination Delivery Property to Dealer hereunder, such Shares or Share
Termination Delivery Property would be in the hands of Dealer subject to any
applicable restrictions with respect to any registration or qualification
requirement or prospectus delivery requirement for such Shares or Share
Termination Delivery Property pursuant to any applicable federal or state
securities law (including, without limitation, any such requirement arising
under Section 5 of the Securities Act as a result of such Shares or Share
Termination Delivery Property being “restricted securities”, as such term is
defined in Rule 144 under the Securities Act, or as a result of the sale
of such Shares or Share Termination Delivery Property being subject to
paragraph (c) of Rule 145 under the Securities Act) (such Shares or
Share Termination Delivery Property, “Restricted Shares”),
then delivery of such Restricted Shares shall be effected pursuant to either
clause (i) or (ii) below at the election of Company, unless Dealer
waives the need for registration/private placement procedures set forth in (i) and
(ii) below.  Notwithstanding the
foregoing, solely in respect of any Daily Number of Warrants exercised or
deemed exercised on any Expiration Date, Company shall elect, prior to the
first Settlement Date for the first Expiration Date, a Private Placement
Settlement or Registration Settlement for all deliveries of Restricted Shares
for all such Expiration Dates which election shall be applicable to all
Settlement Dates for such Warrants and the procedures in clause (i) or
clause (ii) below shall apply for all such delivered Restricted Shares on
an aggregate basis commencing after the final Settlement Date for such
Warrants.  The Calculation Agent shall
make reasonable adjustments to settlement terms and provisions under this
Confirmation to reflect a single Private Placement or Registration Settlement
for such aggregate Restricted Shares delivered hereunder.

 

15

 

(i)                                    If Company elects to settle the
Transaction pursuant to this clause (i) (a “Private
Placement Settlement”), then delivery of Restricted Shares by
Company shall be effected in private placement procedures with respect to such
Restricted Shares as are customary for an issuance of a similar size, all as
reasonably acceptable to Dealer; provided that Company
may not elect a Private Placement Settlement if, on the date of its election,
it has taken, or caused to be taken, any action that would make unavailable
either the exemption pursuant to Section 4(2) of the Securities Act
for the sale by Company to Dealer (or any affiliate designated by Dealer) of
the Restricted Shares or the exemption pursuant to Section 4(1) or Section 4(3) of
the Securities Act for resales of the Restricted Shares by Dealer (or any such
affiliate of Dealer).  The Private
Placement Settlement of such Restricted Shares shall include customary
representations, covenants, blue sky and other governmental filings and/or
registrations, indemnities to Dealer, due diligence rights (for Dealer or any
designated buyer of the Restricted Shares by Dealer), opinions and
certificates, and such other documentation as is customary for private placement
agreements for an issuance of a similar size, all reasonably acceptable to
Dealer.  In the case of a Private
Placement Settlement, Dealer shall determine the appropriate discount to the
Share Termination Unit Price (in the case of settlement of Share Termination
Delivery Units pursuant to paragraph (j) above) or any Settlement Price
(in the case of settlement of Shares pursuant to Section 2 above)
applicable to such Restricted Shares in a commercially reasonable manner for an
issuance of a similar size and appropriately adjust the number of such
Restricted Shares to be delivered to Dealer hereunder; provided
that in no event shall such number be greater than two times the Number of
Shares (the “Maximum Amount”).  Notwithstanding the Agreement or this Confirmation,
the date of delivery of such Restricted Shares shall be the Exchange Business
Day following notice by Dealer to Company, of such applicable discount and the
number of Restricted Shares to be delivered pursuant to this clause (i).  For the avoidance of doubt, delivery of
Restricted Shares shall be due as set forth in the previous sentence and not be
due on the Share Termination Payment Date (in the case of settlement of Share
Termination Delivery Units pursuant to paragraph (j) above) or on the Settlement
Date for such Restricted Shares (in the case of settlement in Shares pursuant
to Section 2 above).

 

In the event Company shall not have delivered the full number of
Restricted Shares otherwise applicable as a result of the proviso above
relating to the Maximum Amount (such deficit, the “Deficit
Restricted Shares”), Company shall be continually obligated to
deliver, from time to time until the full number of Deficit Restricted Shares
have been delivered pursuant to this paragraph, Restricted Shares when, and to
the extent, that (i) Shares are repurchased, acquired or otherwise
received by Company or any of its subsidiaries after the Trade Date (whether or
not in exchange for cash, fair value or any other consideration), (ii) authorized
and unissued Shares reserved for issuance in respect of other transactions
prior to such date which prior to the relevant date become no longer so
reserved and (iii) Company additionally authorizes any unissued Shares
that are not reserved for other transactions. 
Company shall immediately notify Dealer of the occurrence of any of the
foregoing events (including the number of Shares subject to clause (i), (ii) or
(iii) and the corresponding number of Restricted Shares to be delivered)
and promptly deliver such Restricted Shares thereafter.

 

(ii)                                      If Company elects to settle the
Transaction pursuant to this clause (ii) (a “Registration
Settlement”), then Company shall promptly (but in any event no later
than the beginning of the Resale Period) file and use its reasonable best
efforts to make effective under the Securities Act a registration statement or
supplement or amend an outstanding registration statement in form and substance
reasonably satisfactory to Dealer, to cover the resale of such Restricted
Shares in accordance with customary resale registration procedures for an
issuance of a similar size, including covenants, conditions, representations,
underwriting discounts (if applicable), commissions (if applicable),
indemnities due diligence rights, opinions and certificates, and such other
documentation as is customary for equity resale underwriting agreements for an
issuance of a similar 

 

16

 

size, all reasonably acceptable to Dealer.  If Dealer, in its sole reasonable discretion,
is not satisfied with such procedures and documentation Private Placement
Settlement shall apply.  If Dealer is
satisfied with such procedures and documentation, it shall sell the Restricted
Shares pursuant to such registration statement during a period (the “Resale Period”) commencing on the Exchange Business Day
following delivery of such Restricted Shares (which, for the avoidance of
doubt, shall be (x) the Share Termination Payment Date in case of
settlement in Share Termination Delivery Units pursuant to paragraph (j) above
or (y) the Settlement Date in respect of the final Expiration Date for all
Daily Number of Warrants) and ending on the earliest of (i) the Exchange
Business Day on which Dealer completes the sale of all Restricted Shares or, in
the case of settlement of Share Termination Delivery Units, a sufficient number
of Restricted Shares so that the realized net proceeds of such sales equals or
exceeds the Payment Obligation (as defined above), (ii) the date upon
which all Restricted Shares have been sold or transferred pursuant to Rule 144
(or similar provisions then in force) or Rule 145(d)(2) (or any
similar provision then in force) under the Securities Act and (iii) the
date upon which all Restricted Shares may be sold or transferred by a
non-affiliate pursuant to Rule 144 (or any similar provision then in
force) or Rule 145(d)(2) (or any similar provision then in force)
under the Securities Act.  If the Payment
Obligation exceeds the realized net proceeds from such resale, Company shall
transfer to Dealer by the open of the regular trading session on the Exchange
on the Exchange Trading Day immediately following the last day of the Resale
Period the amount of such excess (the “Additional Amount”)
in cash or in a number of Shares (“Make-whole Shares”)
in an amount that, based on the Settlement Price on the last day of the Resale
Period (as if such day was the “Valuation Date” for purposes of computing such
Settlement Price), has a dollar value equal to the Additional Amount.  The Resale Period shall continue to enable
the sale of the Make-whole Shares.  If
Company elects to pay the Additional Amount in Shares, the requirements and
provisions for Registration Settlement shall apply.  This provision shall be applied successively
until the Additional Amount is equal to zero. 
In no event shall Company deliver a number of Restricted Shares greater
than the Maximum Amount.

 

(iii)                                Without limiting the generality of the foregoing,
Company agrees that any Restricted Shares delivered to Dealer, as purchaser of
such Restricted Shares, (i) may be transferred by and among Dealer and its
affiliates and Company shall effect such transfer without any further action by
Dealer and (ii) after the period of 6 months from the Trade Date (or 1
year from the Trade Date if, at such time, informational requirements of Rule 144(c) are
not satisfied with respect to Company) has elapsed after any Settlement Date
for such Restricted Shares, Company shall promptly remove, or cause the
transfer agent for such Restricted Shares to remove, any legends referring to
any such restrictions or requirements from such Restricted Shares upon request
by Dealer (or such affiliate of Dealer) to Company or such transfer agent,
without any requirement for the delivery of any certificate, consent,
agreement, opinion of counsel, notice or any other document, any transfer tax
stamps or payment of any other amount or any other action by Dealer (or such
affiliate of Dealer).

 

If the Private Placement Settlement or the Registration Settlement
shall not be effected as set forth in clauses (i) or (ii), as applicable,
then failure to effect such Private Placement Settlement or such Registration
Settlement shall constitute an Event of Default with respect to which Company
shall be the Defaulting Party.

 

(l)                                      Limit on Beneficial Ownership. 
Notwithstanding any other provisions hereof, Dealer may
not exercise any Warrant hereunder or be entitled to take delivery of any Shares
deliverable hereunder, and Automatic Exercise shall
not apply with respect to any Warrant hereunder, to the extent (but only to the extent) that, after
such receipt of any Shares upon the exercise of such Warrant or otherwise
hereunder, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Post-Effective Limit.  Any purported delivery hereunder shall be
void and have no effect to the extent (but only to the extent) that, after such
delivery, the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Post-Effective Limit. If any 

 

17

 

delivery owed to Dealer hereunder is not made, in
whole or in part, as a result of this provision, Company’s obligation to make
such delivery shall not be extinguished and Company shall make such delivery as
promptly as practicable after, but in no event later than one Business Day
after, Dealer gives notice to Company that, after such delivery, (i) the Section 16
Percentage would not exceed 7.5%, and (ii) the Share Amount would not
exceed the Post-Effective Limit.

 

(m)                                Share Deliveries. Company acknowledges and agrees that,
to the extent the holder of this Warrant is not then an affiliate and has not
been an affiliate for 90 days (it being understood that Dealer will not be
considered an affiliate under this paragraph solely by reason of its receipt of
Shares pursuant to this Transaction), and otherwise satisfies all holding
period and other requirements of Rule 144 of the Securities Act applicable
to it, any delivery of Shares or Share Termination Delivery Property hereunder
at any time after 6 months from the Trade Date (or 1 year from the Trade Date
if, at such time, informational requirements of Rule 144(c) are not
satisfied with respect to Company) shall be eligible for resale under Rule 144
of the Securities Act and Company agrees to promptly remove, or cause the
transfer agent for such Shares or Share Termination Delivery Property, to
remove, any legends referring to any restrictions on resale under the
Securities Act from the Shares or Share Termination Delivery Property.  Company further agrees that any delivery of
Shares or Share Termination Delivery Property prior to the date that is 6
months from the Trade Date (or 1 year from the Trade Date if, at such time,
informational requirements of Rule 144(c) are not satisfied with
respect to Company), may be transferred by and among Dealer and its affiliates
and Company shall effect such transfer without any further action by
Dealer.  Notwithstanding anything to the
contrary herein, Company agrees that any delivery of Shares or Share
Termination Delivery Property shall be effected by book-entry transfer through
the facilities of DTC, or any successor depositary, if at the time of delivery,
such class of Shares or class of Share Termination Delivery Property is in
book-entry form at DTC or such successor depositary.  Notwithstanding anything to the contrary
herein, to the extent the provisions of Rule 144 of the Securities Act or
any successor rule are amended, or the applicable interpretation thereof
by the Securities and Exchange Commission or any court change after the Trade
Date, the agreements of Company herein shall be deemed modified to the extent
necessary, in the opinion of outside counsel of Company, to comply with Rule 144
of the Securities Act, as in effect at the time of delivery of the relevant
Shares or Share Termination Delivery Property.

 

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

 

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

 

(p)                                  Maximum Share Delivery. 
Notwithstanding any other provision of this Confirmation or the
Agreement, in no event will Company be required to deliver more than the
Maximum Amount of Shares in the aggregate to Dealer in connection with this
Transaction, subject to the provisions regarding Deficit Restricted Shares

 

(q)                                  Right to Extend.  Dealer may postpone, in whole or in part, any
Expiration Date or any other date of valuation or delivery with respect to some
or all of the relevant Warrants (in which event the Calculation Agent shall
make appropriate adjustments to the Daily Number of Warrants with respect to
one or more Expiration Dates) if Dealer determines, in its commercially
reasonable judgment, that such extension is reasonably necessary or appropriate
to preserve Dealer’s hedging or hedge unwind activity hereunder in light of
existing liquidity conditions or to enable Dealer to 

 

18

 

effect purchases of Shares in connection with its
hedging, hedge unwind or settlement activity hereunder in a manner that would,
if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance
with applicable legal, regulatory or self-regulatory requirements, or with
related policies and procedures applicable to Dealer.

 

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

 

(s)                                   Securities Contract; Swap
Agreement.  The parties
hereto intend for: (a) the Transaction to be a “securities contract” and a
“swap agreement” as defined in the Bankruptcy Code (Title 11 of the United
States Code) (the “Bankruptcy Code”),
and the parties hereto to be entitled to the protections afforded by, among
other Sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of
the Bankruptcy Code; (b) a party’s right to liquidate the Transaction and
to exercise any other remedies upon the occurrence of any Event of Default
under the Agreement with respect to the other party to constitute a
“contractual right” as described in the Bankruptcy Code; and (c) each
payment and delivery of cash, securities or other property hereunder to
constitute a “margin payment” or “settlement payment” and a “transfer” as
defined in the Bankruptcy Code.

 

(t)                                     Delivery or
Receipt of Cash. For the avoidance of doubt, other than receipt of the
Premium by Company, nothing in this Confirmation shall be interpreted as
requiring Company to cash settle this Transaction, except in circumstances
where such cash settlement is within Company’s control (including, without limitation,
where Company elects to deliver or receive cash, where Company fails timely to
elect the Share Termination Alternative, or where Company has made Private
Placement Settlement unavailable due to the occurrence of events within its
control ) or in those circumstances in which holders of the Shares would also
receive cash.

 

(u)           Early
Unwind. In the event the sale of the “Underwritten Securities”
(as defined in the Underwriting Agreement) is not consummated with
the Underwriters for any reason, or if Company fails to deliver to Dealer
opinions of counsel as required pursuant to Section 9(a), in each case by
the close of business in New York on the Premium Payment Date, or such later
date as agreed upon by the parties (the Premium Payment Date or such later
date, the “Early Unwind Date”),  the
Transaction shall automatically terminate (the “Early Unwind”),  on the Early Unwind Date and (i) the
Transaction and all of the respective rights and obligations of Dealer and
Company under the Transaction shall be cancelled and terminated and (ii) each
party shall be released and discharged by the other party from and agrees not
to make any claim against the other party with respect to any obligations or
liabilities of the other party arising out of and to be performed in connection
with the Transaction either prior to or after the Early Unwind Date; provided that Company shall reimburse
Dealer for any costs or expenses (including market losses) relating to the
unwinding of its hedging activities in connection with the Transaction
(including any loss or cost incurred as a result of terminating, liquidating,
obtaining or reestablishing any hedge or related trading position of Dealer or
one or more of its affiliates in connection with the Transaction). The amount
of any such reimbursement shall be determined by Dealer in its sole good faith
discretion. Dealer shall notify Company of such amount and Company shall pay
such amount in immediately available funds on the Early Unwind Date.  Each of Dealer and Company represent and
acknowledge to the other that, subject to the proviso included in this Section,
upon an Early Unwind, all obligations with respect to the Transaction shall be
deemed fully and finally discharged.

 

(v)                                  Payment
by Dealer. In the event that (i) an Early Termination
Date occurs or is designated with respect to the Transaction as a result of a
Termination Event or an Event of Default (other than an Event of Default
arising under Section 5(a)(ii) or 5(a)(iv) of the Agreement)
and, as a result, Dealer owes to Company pursuant to Section 6(d)(ii) of
the Agreement an amount calculated 

 

19

 

under Section 6(e) of
the Agreement, or (ii) Dealer owes to Company, pursuant to Section 12.7
or Section 12.9 of the Equity Definitions (including, for the avoidance of
doubt, any amount payable in connection with an Extraordinary Event), an amount
calculated under Section 12.8 of the Equity Definitions, such amount shall
be deemed to be zero.

 

20

 

Please confirm that
the foregoing correctly sets forth the terms of our agreement by executing this
Confirmation and returning it to EDG Confirmation Group, J.P. Morgan Securities
Inc., 277 Park Avenue, 11th Floor, New York, NY 10172-3401, or by fax to (212) 622 8519.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
  J.P.
  Morgan Securities Inc., as agent for JPMorgan Chase Bank, National
  Association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted and confirmed as of the Trade Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Take-Two Interactive
  Software, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
						

 

JPMorgan Chase Bank, National Association 

Organised under the laws of the United States as a National Banking
Association

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746 

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

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