Document:

Exhibit
10.4

EXECUTION COPY

Dresdner
Bank AG, New York Branch | 1301 Avenue of the Americas | New York, NY 10019 |
Tel: (212) 969-2700

Opening Transaction

	
  

  	
   

  	
  EMC Corporation

  
	
  To:

  	
   

  	
  176 South Street

  
	
   

  	
   

  	
  Hopkinton, MA 01748

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Dresdner Bank AG, New York Branch

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Issuer Warrant Transaction

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  November 13, 2006

  

 

Dear Sir(s):

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

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

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

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

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

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

General Terms:

	
  Trade Date:

  	
  November 13, 2006

  

 

	
  Effective Date:

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

  
	
   

  	
   

  
	
  Components:

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

  
	
   

  	
   

  
	
  Warrant Style:

  	
  European

  
	
   

  	
   

  
	
  Warrant Type:

  	
  Call

  
	
   

  	
   

  
	
  Seller:

  	
  Issuer

  
	
   

  	
   

  
	
  Buyer:

  	
  Dealer

  
	
   

  	
   

  
	
  Shares:

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

  
	
   

  	
   

  
	
  Number of Warrants:

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

  
	
   

  	
   

  
	
  Warrant Entitlement:

  	
  One Share per Warrant

  
	
   

  	
   

  
	
  Strike Price:

  	
  USD19.5455

  
	
   

  	
   

  
	
  Premium:

  	
  USD44,142,750 (Premium per Warrant USD1.3714)

  
	
   

  	
   

  
	
  Premium Payment Date:

  	
  The Effective Date

  
	
   

  	
   

  
	
  Exchange:

  	
  New York Stock Exchange

  
	
   

  	
   

  
	
  Related Exchange:

  	
  All Exchanges

  
	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  
	
   

  	
   

  
	
  In respect of any Component:

  	
   

  
	
   

  	
   

  
	
  Expiration Time:

  	
  Valuation Time

  
	
   

  	
   

  
	
  Expiration Date:

  	
  As provided in Annex A to this Confirmation
  (or, if such date is not a Scheduled Trading Day, the next following
  Scheduled Trading Day that is not already an Expiration Date for another
  Component); provided that if that date is a
  Disrupted Day, the Expiration Date for such Component shall be the first
  succeeding Scheduled Trading Day that is not a Disrupted Day and is not or is
  not deemed to be an Expiration Date in respect of any other Component of the
  Transaction hereunder; and provided further
  that if the Expiration Date has not occurred pursuant to the preceding
  proviso as of the Final Disruption Date, the Final Disruption Date shall be
  the Expiration Date (irrespective of whether such date is an Expiration Date
  in respect of any other Component for the Transaction). “Final
  Disruption Date” means March 27, 2012. Notwithstanding the
  foregoing and anything to the contrary in the Equity Definitions, if a Market
  Disruption Event occurs on any Expiration

  

 

 2
 

 

	
  

  	
   

  	
  Date, the Calculation Agent may determine that such
  Expiration Date is a Disrupted Day only in part, in which case the
  Calculation Agent shall make adjustments to the number of Warrants for the
  relevant Component for which such day shall be the Expiration Date and shall
  designate the Scheduled Trading Day determined in the manner described in the
  immediately preceding sentence as the Expiration Date for the remaining
  Warrants for such Component. Section 6.6 of the Equity Definitions shall not
  apply to any Valuation Date occurring on an Expiration Date.

  
	
   

  	
   

  	
   

  
	
  Market Disruption
  Event:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  Applicable; and means that the Number of Warrants
  for the corresponding Expiration Date will be deemed to be automatically
  exercised at the Expiration Time on such Expiration Date unless Buyer
  notifies Seller and the Calculation Agent (by telephone or in writing) prior
  to the Expiration Time on such Expiration Date that it does not wish
  Automatic Exercise to occur, in which case Automatic Exercise will not apply
  to such Expiration Date.

  
	
   

  	
   

  	
   

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

  	
   

  	
  Attn: Office of General Counsel 

  
	
   

  	
   

  	
  Telephone: (508) 435-1000

  
	
   

  	
   

  	
  Facsimile: (508) 497-6915

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Number of Shares to be Delivered shall be
  delivered by Issuer to Dealer no later than 12:00 noon

  

 

 3
 

 

	
  

  	
   

  	
  (local time in New York City) on the relevant
  Settlement Date.

  
	
   

  	
   

  	
   

  
	
  Number of Shares to be
  Delivered:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  VWAP Price:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Extraordinary Dividend:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a) Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  

 

 4
 

 

	
  (b) Share-for-Other:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (c) Share-for-Combined:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Consequences of Tender
  Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a) Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (b) Share-for-Other:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (c) Share-for-Combined:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Modified Calculation
  Agent Adjustment:

  	
   

  	
  

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

  
	
   

  	
   

  	
   

  
	
  Reference Markets:

  	
   

  	
  For the avoidance of doubt, and without limiting the
  generality of the foregoing provisions, any adjustment effected by the
  Calculation Agent pursuant to Section

  

 

 5
 

 

	
  

  	
   

  	
  12.2(e) and/or Section 12.3(d) of the Equity
  Definitions may be determined by reference to the adjustment(s) made in
  respect of Merger Events or Tender Offers, as the case may be, in the
  convertible bond market.

  
	
   

  	
   

  	
   

  
	
  Nationalization,
  Insolvency or Delisting:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Additional Disruption
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)          Change
  in Law:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(ii) of the Equity Definitions shall be amended by inserting
  (i) at the end of the fifth line thereof the following phrase: “(or GS)”,
  (ii) at the end of clause (X) the following phrase: “(or, in the case of GS,
  a Hedging Party Related Transaction)”; and (iii) in clause (Y), immediately
  following the words “such Transaction”, the following phrase: “(or, in the
  case of GS, a Hedging Party Related Transaction).”

  
	
   

  	
   

  	
   

  
	
  Hedging Party Related Transaction:

  	
   

  	
  For any Transaction, a transaction between GS and
  Buyer or its affiliate in respect of such Transaction.

  
	
   

  	
   

  	
   

  
	
  (b)         Failure
  to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (c)          Insolvency
  Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (d)         Hedging
  Disruption:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(v) of the Equity Definitions shall be amended by inserting at
  the end of clause (A) the following phrase: “(or a transaction between GS and
  Buyer or its affiliate in respect of the relevant Transaction).”

  
	
   

  	
   

  	
   

  
	
  (e)          Increased
  Cost of Hedging:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(vi) of the Equity Definitions shall be amended by inserting
  at the end of clause (A) the following phrase: “(or a Hedging Party Related
  Transaction).”

  
	
   

  	
   

  	
   

  
	
  (f)            Loss
  of Stock Borrow:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(vii) of the Equity Definitions shall be amended by inserting
  in the third line thereof following the words “such Transaction” the
  following phrase: “(or a Hedging Party Related Transaction).”

  
	
   

  	
   

  	
   

  
	
  Maximum Stock Loan
  Rate:

  	
   

  	
  1.00% per annum

  

 

 6
 

 

	
  (g)         Increased
  Cost of Stock Borrow:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(viii) of the Equity Definitions shall be amended by inserting
  in the second line thereof following the words “such Transaction” the
  following phrase: “(or a Hedging Party Related Transaction).”

  
	
   

  	
   

  	
   

  
	
  Initial Stock Loan
  Rate:

  	
   

  	
  0.25% per annum

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  GS

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  For all applicable Additional Disruption Events, the
  Calculation Agent.

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and
  Acknowledgments

  	
   

  	
   

  
	
  Regarding Hedging
  Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  3.               Calculation
  Agent:

  	
   

  	
  Goldman Sachs International or any of its affiliates
  to which Goldman Sachs International assigns its rights and obligations under
  a transaction with the Dealer that is related to this Transaction (“GS”).

  
	
   

  	
   

  	
   

  
	
  4.               Account
  Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dealer Payment Instructions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dresdner Bank A.G.

  	
   

  	
   

  
	
  For A/C 

  	
   

  	
   

  
	
  A/C # 

  	
   

  	
   

  
	
  ABA: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Issuer Payment
  Instructions:

  	
   

  	
  To be provided by Issuer.

  
	
   

  	
   

  	
   

  
	
  5.               Offices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Office of Dealer
  for the Transaction is:

  
	
   

  	
   

  	
   

  
	
  1301 Avenue of the
  Americas, New York, NY 10019

  
	
   

  
	
  The Office of Issuer
  for the Transaction is:

  
	
   

  	
   

  	
   

  
	
  176 South Street,
  Hopkinton, MA 01748

  
	
   

  
	
  6.               Notices:
  For purposes of this Confirmation:

  
	
   

  	
   

  
	
  (a)                                  Address
  for notices or communications to Issuer:

  
	
   

  	
   

  
	
  To:

  	
  EMC Corporation

  
	
  Attn:

  	
  Office of General Counsel

  
	
  Telephone:

  	
  (508) 435-1000

  
	
  Facsimile:

  	
  (508) 497-6915

  
	
   

  	
   

  
	
  (b)                                 Address
  for notices or communications to Dealer:

  
	
   

  
	
  To:

  	
  Dresdner Bank AG, New York Branch

  
	
  Attn:

  	
  Donald Roeill

  	
   

  
	
  Telephone:

  	
  (212) 895-5248

  	
   

  
	
  Facsimile:

  	
  (212) 429-3493

  	
   

  
	
   

  	
   

  
	
  With a copy to:

  	
   

  
	
   

  	
   

  
	
  Attn:

  	
  Alan Skandan

  	
   

  
						

 

 7
 

 

	
  Facsimile:                    (212)
  429-4522

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (c)                                  Address
  for notices or communications to GS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  All communications
  relating to the Transaction or the Agreement shall be transmitted exclusively:

  
	
   

  
	
  Through:

  	
  Goldman, Sachs & Co.

  
	
   

  	
  One New York Plaza

  
	
   

  	
  New York, NY 10004

  
	
  Attn:

  	
  Equity Operations: Options and Derivatives

  
	
  Telephone:

  	
  (212) 902-1981

  
	
  Facsimile:

  	
  (212) 428-1980/1983

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attn:

  	
  Tracey McCabe

  
	
   

  	
  Equity Capital Markets

  
	
  Telephone:

  	
  (212) 357-0428

  
	
  Facsimile:

  	
  (212) 902-3000

  
				

 

7.               Representations,
Warranties and Agreements:

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

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

(ii)                                  Without
limiting the generality of Section 13.1 of the Equity Definitions, Issuer
acknowledges that neither Dealer nor GS is making any representations or
warranties with respect to the treatment of the Transaction under FASB
Statements 128, 133, 149 or 150, EITF Issue No. 00-19 (or any successor issue
statements) or under FASB’s Liabilities & Equity Project.

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

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

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

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

 8
 

 

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

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

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

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

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

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

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

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

 9
 

 

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

8.  Other
Provisions:

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

	
  Share Termination Alternative:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery Property:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Unit Price:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery Unit:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other applicable provisions:

  	
   

  	
  If Share Termination Alternative is applicable, the
  provisions of Sections 9.8, 9.9, 9.10, 9.11 (except that the Representation
  and Agreement contained in Section 9.11 of the Equity Definitions shall be
  modified by excluding any representations therein relating to restrictions,

  

 

 10
 

 

	
  

  	
   

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

  

 

(b)           Registration/Private Placement Procedures.  (i) 
With respect to the Transaction, the following provisions shall apply to
the extent provided for above opposite the caption “Net Share Settlement” in
Section 2 or in paragraph (a) of this Section 8.  If so applicable, then, at the election of
Issuer by notice to Buyer and GS within one Exchange Business Day after the
relevant delivery obligation arises, but in any event at least one Exchange
Business Day prior to the date on which such delivery obligation is due, either
(A) all Shares or Share Termination Delivery Units, as the case may be,
delivered by Issuer to Buyer and by Buyer to Hedging Party shall be, at the
time of such delivery, covered by an effective registration statement of Issuer
for immediate resale by Buyer or by Hedging Party, as the case may be (such
registration statement and the corresponding prospectus (the “Prospectus”) (including, without limitation, any sections
describing the plan of distribution) in form and content commercially
reasonably satisfactory to Buyer and Hedging Party) or (B) Issuer shall deliver
additional Shares or Share Termination Delivery Units, as the case may be, so
that the value of such Shares or Share Termination Delivery Units, as
determined by the Calculation Agent to reflect an appropriate liquidity
discount, equals the value of the number of Shares or Share Termination
Delivery Units that would otherwise be deliverable if such Shares or Share
Termination Delivery Units were freely tradeable (without prospectus delivery)
upon receipt by Buyer (such value, the “Freely Tradeable Value”);
provided that Issuer may not make the
election described in this clause (B) if, on the date of its election, it has
taken, or caused to be taken, any action that would make unavailable either the
exemption pursuant to Section 4(2) of the Securities Act for the sale by Issuer
to Dealer (or any affiliate designated by Dealer) of the Shares or the
exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for
resales of the Shares by Dealer (or any such affiliate of Dealer) or by Hedging
Party (or an affiliate of Hedging Party designated by Hedging Party); provided further that,
if requested by Dealer or Hedging Party, Issuer shall make the election
described in this clause (B) with respect to Shares delivered on all Settlement
Dates no later than one Exchange Business Day prior to the first Expiration
Date, and the applicable procedures described below shall apply to all Shares
delivered on the Settlement Dates on an aggregate basis.  (For the avoidance of doubt, as used in this
paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

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

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

(B)                                Buyer (or an affiliate of Buyer designated by
Buyer), Hedging Party (or an affiliate of Hedging Party designated by Hedging
Party) and Issuer shall enter into an agreement (a “Registration
Agreement”) on commercially reasonable terms in connection with the
public resale of such Shares or Share Termination Delivery Units, as the case
may be, by Buyer, Hedging Party or any such affiliate substantially similar to
underwriting agreements customary for underwritten offerings of equity
securities, in form and substance commercially reasonably satisfactory to
Buyer, Hedging Party and/or any such affiliates and Issuer, which Registration
Agreement shall include, without limitation, provisions substantially similar
to those contained in such underwriting agreements relating to the
indemnification of, and contribution in connection with the liability of,

 11
 

Buyer, Hedging Party and
their respective affiliates and Issuer, shall provide for the payment by Issuer
of all expenses in connection with such resale, including all registration
costs and all fees and expenses of counsel for Buyer and counsel for Hedging
Party, and shall provide for the delivery of accountants’ “comfort letters” to
Buyer, Hedging Party and/or any such affiliate with respect to the financial
statements and certain financial information contained in or incorporated by
reference into the Prospectus.

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

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

(B)                                Buyer (or an affiliate of Buyer designated by
Buyer) and Hedging Party (or an affiliate of Hedging Party designated by
Hedging Party) and Issuer shall enter into an agreement (a “Private Placement Agreement”) on commercially reasonable
terms in connection with the private placement of such Shares or Share
Termination Delivery Units, as the case may be, by Issuer to Buyer or such an
affiliate, the private resale of such shares by Buyer or such an affiliate to
Hedging Party or its affiliate and the private resale of such shares by Hedging
Party or such an affiliate, substantially similar to private placement purchase
agreements customary for private placements of equity securities, in form and
substance commercially reasonably satisfactory to Buyer, Hedging Party, their
respective affiliates and Issuer, which Private Placement Agreement shall
include, without limitation, provisions substantially similar to those
contained in such private placement purchase agreements relating to the
indemnification of, and contribution in connection with the liability of,
Buyer, Hedging Party and their respective affiliates and Issuer, shall provide
for the payment by Issuer of all expenses in connection with such resale,
including all fees and expenses of counsel for Buyer and counsel for Hedging
Party, shall contain representations, warranties and agreements of Issuer
reasonably necessary or advisable to establish and maintain the availability of
an exemption from the registration requirements of the Securities Act for such
resales, and shall use best efforts to provide for the delivery of accountants’
“comfort letters” to Buyer, Hedging Party and/or any such affiliate with
respect to the financial statements and certain financial information contained
in or incorporated by reference into the offering memorandum prepared for the
resale of such Shares; and

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

(c)                                  Make-whole Shares.  If
Issuer (x) elects to deliver Share Termination Delivery Units pursuant to
paragraph (a) of this Section 8 and (y) makes the election described in clause
(b)(i)(B) of

 12
 

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

(d)                                 Beneficial Ownership.  Notwithstanding
anything to the contrary in the Agreement or this Confirmation, in no event
shall Buyer be entitled to receive, or shall be deemed to receive, any Shares
if, immediately upon giving effect to such receipt of such Shares, the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules
promulgated thereunder) of Shares by Buyer, any of its affiliates subject to
aggregation with Buyer for the purposes of the “beneficial ownership” test
under Section 13 of the Exchange Act and all persons who may form a “group”
(within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Buyer with
respect to “beneficial ownership” of any Shares (collectively, “Buyer Group”) would be equal to or greater than 9.5% or more
of the outstanding Shares.  If any
delivery owed to Buyer hereunder is not made, in whole or in part, as a result
of this provision, Issuer’s obligation to make such delivery shall not be
extinguished and Issuer shall make such delivery as promptly as practicable
after, but in no event later than one Exchange Business Day after, Buyer gives
notice to Issuer that such delivery would not result in Buyer Group directly or
indirectly so beneficially owning in excess of 9.5% of the outstanding Shares.  For the avoidance of doubt, nothing in this
subsection (d) obligates Issuer to pay cash to Buyer in lieu of any Share
delivery obligation owed by Issuer to Buyer under this Confirmation.

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

 13
 

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

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

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

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

(h)                                 Transfer and Assignment.  Buyer
may transfer or assign its rights and obligations hereunder and under the
Agreement, in whole or in part, at any time to any bank or broker-dealer or any
affiliate thereof that in either case regularly enters into over-the-counter
equity derivative transactions without the consent of Issuer. Notwithstanding
any other provision of this Confirmation to the contrary requiring or allowing
Buyer to receive or deliver any Shares, Buyer may designate any of its
affiliates to receive or deliver such Shares and otherwise perform Buyer’s
obligations in respect of this Transaction and any such designee may assume
such obligation. Buyer shall be discharged of its obligation hereunder to the
extent of any such performance.

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

(j)                                     Additional Termination Event.  If
within the period commencing on the Trade Date and ending on the second
anniversary of the Premium Payment Date, Hedging Party reasonably determines
that it is advisable for Buyer to terminate a portion of the Transaction so
that Hedging Party’s related hedging activities will comply with applicable
securities laws, rules or regulations, an Additional Termination Event shall
occur in respect of which (1) Issuer shall be the sole Affected Party and (2)
the Transaction shall be the sole Affected Transaction.

(k)                                  Effectiveness.  If,
prior to the Effective Date, Hedging Party reasonably determines that Hedging
Party’s hedging activities under any Hedging Party Related Transaction could be
viewed as not complying with applicable securities laws, rules or regulations,
the Transaction shall be cancelled and shall not become effective, and neither
party shall have any obligation to the other party in respect of the
Transaction.

(l)                                     Extension of Settlement.  The
Calculation Agent may divide any Component into additional Components and
designate the Expiration Date and the Number of Warrants for each such
Component if the Calculation Agent determines, in its reasonable discretion,
that such further division is

 14
 

necessary or advisable to
preserve Hedging Party’s hedging activity under any Hedging Party Related
Transaction in light of existing liquidity conditions or to enable Hedging
Party to effect purchases of Shares in connection with its hedging activity
under such Hedging Party Related Transaction in a manner that would, if Hedging
Party were Issuer or an affiliated purchaser of Issuer, be in compliance with
applicable legal and regulatory requirements.

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

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

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

(p)                                 Early Termination or
Cancellation.  Notwithstanding anything to the contrary in
the Equity Definitions or the Agreement, to the extent that Dealer would
otherwise have the right under the Equity Definitions or the Agreement to elect
to cancel the Transaction, to designate an Early Termination Date in respect of
the Transaction or to determine any amount due upon the cancellation or early
termination of the Transaction, the Calculation Agent shall make such election,
designation or determination, as the case may be, in place of Dealer.

(r)                                    Third Party Beneficiary.  GS
shall be the third party beneficiary of Issuer’s representations, warranties,
agreements, indemnities and other obligations hereunder and will have a right
to directly enforce those obligations against Issuer.

 15

Issuer hereby agrees (a) to check this
Confirmation carefully and immediately upon receipt so that errors or
discrepancies can be promptly identified and rectified and (b) to confirm that
the foregoing (in the exact form provided by Dealer) correctly sets forth the
terms of the agreement between Dealer and Issuer with respect to the
Transaction, by manually signing this Confirmation or this page hereof as
evidence of agreement to such terms and providing the other information
requested herein and immediately returning an executed copy to Dresdner Bank
AG, New York Branch, Facsimile No. (212) 429-3493, with a copy to Goldman,
Sachs & Co., Equity Derivatives Documentation Department, Facsimile No. (212)
428-1980/83.

	
  

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DRESDNER BANK AG, NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
  /s/ Vito Dimattia

  
	
   

  	
   

  	
  Name: Vito Dimattia

  
	
   

  	
   

  	
  Title:

  	
  Managing Director,

  
	
   

  	
   

  	
   

  	
  Department Head -

  
	
   

  	
   

  	
   

  	
  Operations

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
  /s/ Peter Cavalieri

  
	
   

  	
   

  	
  Name: Peter Cavalieri

  
	
   

  	
   

  	
  Title:

  	
  Director,

  
	
   

  	
   

  	
  Global Business Services

  
	
   

  	
   

  	
  (CM)

  
	
   

  	
   

  
	
  Agreed and accepted by:

  	
   

  
	
   

  	
   

  
	
  EMC CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Irina Simmons

  	
   

  
	
   

  	
  Name: Irina Simmons

  	
   

  
	
   

  	
  Title: Senior Vice President and Treasurer

  	
   

  
						

 

Annex A

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

	
  Component
  Number

  	
   

  	
  Number of Warrants

  	
   

  	
  Expiration Date

  
	
  1

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 15,
  2012

  
	
  2

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 16,
  2012

  
	
  3

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 17,
  2012

  
	
  4

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 21,
  2012

  
	
  5

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 22,
  2012

  
	
  6

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 23,
  2012

  
	
  7

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 24,
  2012

  
	
  8

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 27,
  2012

  
	
  9

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 28,
  2012

  
	
  10

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  February 29,
  2012

  
	
  11

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  March 1, 2012

  
	
  12

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  March 2, 2012

  
	
  13

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  March 5, 2012

  
	
  14

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  March 6, 2012

  
	
  15

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  March 7, 2012

  
	
  16

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  March 8, 2012

  
	
  17

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  March 9, 2012

  
	
  18

  	
   

  	
   

  	
  1,609,368

  	
   

  	
  March 12, 2012

  
	
  19

  	
   

  	
   

  	
  1,609,369

  	
   

  	
  March 13, 2012

  
	
  20

  	
   

  	
   

  	
  1,609,369

  	
   

  	
  March 14, 2012

  

 

 17Exhibit
10.5

	
  

  	
   

  	
  EXECUTION
  COPY

  
	
   

  	
   

  	
   

  
	
   

  	
  Deutsche Bank

  	
  

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank AG London

  
	
   

  	
  Winchester house

  
	
   

  	
  1 Great Winchester St,

  
	
   

  	
  London EC2N 2DB

  
	
   

  	
  Telephone:  44
  20 7545 8000

  
	
   

  	
   

  
	
   

  	
  c/o Deutsche Bank AG New York

  
	
   

  	
  60 Wall Street

  
	
   

  	
  New York, NY 10005

  
	
   

  	
  Telephone: 212-250-2500

  
	
   

  	
   

  
	
   

  	
   

  	
  Opening Transaction

  
				

 

	
  To:

  	
   

  	
  EMC Corporation 

  176 South Street 

  Hopkinton, MA 01748

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Deutsche Bank AG, London Branch

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Convertible Bond Hedge Transaction

  
	
   

  	
   

  	
   

  
	
  Ref. No:

  	
   

  	
  141175

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  November 13, 2006

  

 

Dear Sir(s):

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

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

1.               This
Confirmation is subject to, and incorporates, the definitions and provisions of
the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and
provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the
2000 Definitions, the “Definitions”),
in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”).  In the event of any inconsistency between the
2000 Definitions and the Equity Definitions, the Equity Definitions will
govern.  Certain defined terms used herein
have the meanings assigned to them in the Indenture to be dated as of November
17, 2006 between Counterparty and Wells Fargo Bank, N.A., as trustee (the “Indenture”) relating to the
USD1,725,000,000 principal amount of 1.75% convertible senior notes due
December 1, 2011 (the “Convertible Debentures”)
and the USD1,725,000,000 principal amount of 1.75% convertible senior notes due
December 1, 2013.  In the 

event of any
inconsistency between the terms defined in the Indenture and this Confirmation,
this Confirmation shall govern.  For the
avoidance of doubt, (i) the Transaction shall be the only transaction under the
Agreement; and (ii) references herein to sections of the Indenture are based on
the draft of the Indenture most recently reviewed by the parties at the time of
execution of this Confirmation.  If any
relevant sections of the Indenture are changed, added or renumbered upon
execution of this Confirmation, the parties will amend this Confirmation in
good faith to preserve the economic intent of the parties.  Furthermore, for the avoidance of doubt, even
if all Convertible Debentures cease to be outstanding prior to the Expiration
Date (as set forth below), for purposes of the references herein to sections of
the Indenture, the Convertible Debentures shall be deemed to remain
outstanding.  The Transaction is subject
to early unwind if the closing of the Convertible Debentures is not consummated
for any reason, as set forth below in Section 8(k).

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

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

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

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

General Terms:

	
  Trade Date:

  	
   

  	
  November 13, 2006

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Option Style:

  	
   

  	
  American

  
	
   

  	
   

  	
   

  
	
  Option Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Number of Options:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Option Entitlement:

  	
   

  	
  As of any date, a number of Shares per Option equal
  to the Conversion Rate (as defined in the Indenture, 

  

 

 2
 

 

	
  

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Number of Shares:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Applicable Percentage:

  	
   

  	
  50%

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD141,708,750.

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  The Effective Date

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  New York Stock Exchange

  
	
   

  	
   

  	
   

  
	
  Related Exchange:

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Independent Threshold
  Date:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Conversion Date:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Exercise Period:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Expiration Date: 

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Multiple Exercise:

  	
   

  	
  Applicable.

  
	
   

  	
   

  	
   

  
	
  Minimum Number of
  Options:

  	
   

  	
  Zero

  
	
   

  	
   

  	
   

  
	
  Maximum Number of
  Options:

  	
   

  	
  Number of Options

  
	
   

  	
   

  	
   

  
	
  Integral Multiple:

  	
   

  	
  One

  

 

 3
 

 

	
  Automatic Exercise:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Notice of Exercise:

  	
   

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, (x) in order to exercise any Options on any Exercise Date
  that precedes the Independent Threshold Date, Counterparty must notify Dealer
  in writing prior to 5:00 PM, New York City time, on the Exchange Business Day
  prior to the first Scheduled
  Trading Day of the “Observation Period”, as defined in the Indenture,
  relating to the Relevant Convertible Debentures converted on the Conversion
  Date on which such Exercise Date occurs (the “Notice Deadline”) of (i) the relevant Exercise Date, (ii)
  the number of Options being exercised on such Exercise Date, (iii) the
  scheduled settlement date under the Indenture for the Relevant Convertible
  Debentures converted on the Conversion Date on which such Exercise Date
  occurs, (iv) the first day of the relevant Observation Period, and (v) the
  applicable Cash Percentage (as defined in the Indenture); provided that, notwithstanding the
  foregoing, such notice shall be effective so long as it relates to an
  Exercise Date that would not have been the Independent Threshold Date, if the
  notice were delivered by the Notice Deadline and the notice is given after
  the Notice Deadline but prior to 5:00 PM (New York City time) on the fifth Exchange
  Business Day of such Observation Period and prior to the Independent
  Threshold Date (it being understood that such delayed notice does not itself
  cause the Independent Threshold Date to occur), in which event the
  Calculation Agent shall have the right to adjust the Delivery Obligation as
  appropriate to reflect the additional costs (including, but not limited to,
  hedging mismatches and market losses) and expenses incurred by Dealer or any
  of its affiliates in connection with its hedging activities (including the
  unwinding of any hedge position) as a result of its not having received such
  notice prior to the Notice Deadline; and (y) in order to exercise any Options
  on any Exercise Date that is or is following the Independent Threshold Date,
  Counterparty must notify Dealer in writing prior to 5:00 PM, New York City
  time, on the Exchange Business Day prior to the first Scheduled Trading Day
  of the “Observation Period”, determined as if the Exercise Date were a
  Conversion Date, as defined in the Indenture, of (i) the relevant Exercise
  Date, (ii) the number of Options being exercised on such Exercise Date, (iii)
  the first day of the Observation Period (determined in accordance with
  Section 1.1 of the Indenture for Relevant Convertible Debentures for the
  corresponding Conversion Date, if any, or, if such Exercise Date did not
  occur on a Conversion Date, determined in accordance with Section 1.1 of the 

  

 

 4
 

 

	
  

  	
   

  	
  Indenture as if such Exercise Date were a Conversion
  Date) and (iv) the applicable Cash Percentage and, except for any Exercise
  Date occurring during the period from and including November 1, 2011 to and
  including the Expiration Date, Counterparty shall also make in such written
  notice representations, warranties and agreements set forth in Sections
  7(a)(i) and (ii) hereof; provided
  that, in either case, with respect to any Exercise Dates occurring during the
  period starting on and including November 1, 2011 to and including the
  Expiration Date, Counterparty may provide a single notice containing the
  information required above with respect to such Exercise Dates.  For the avoidance of doubt, if an exercise
  of Options is in connection with a conversion of the Relevant Convertible
  Debentures, Counterparty shall designate the Exercise Date in its Notice of
  Exercise as the corresponding Conversion Date.

  
	
  Dealer’s Telephone
  Number

  and Telex and/or
  Facsimile Number

  and Contact Details for
  purpose of

  Giving Notice:

  	
   

  	
  To: 

  	
  Deutsche Bank Securities Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
  Andrew Yaeger and

  Lee Frankenfield

  
	
   

  	
   

  	
  Telephone:

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

  
	
   

  	
   

  	
  Email:

  	
  andrew.yaeger@db.com and

  
	
   

  	
   

  	
   

  	
  lee.frankenfield@db.com

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Delivery Obligation:

  	
   

  	
  In lieu of the obligations set forth in Sections 8.1
  and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above,
  in respect of any Exercise Date, Dealer will deliver to Counterparty, on the
  related Settlement Date, a number of Shares and/or an amount of cash, as
  determined by the Calculation Agent (and, if such Exercise Date does not
  occur on a Conversion Date or, if the number of Options being exercised on
  such Exercise Date differs from the number of the Relevant Convertible
  Debentures for the Conversion Date that coincides with such Exercise Date, as
  if such Exercise Date were a Conversion Date for a number of Relevant
  Convertible Debentures equal to the number of Options being exercised on such
  Exercise Date), to be equal to (i) the product of the Applicable 

  

 

 5
 

 

	
  

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Notice of Delivery
  Obligation:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
   

  	
  To the extent Dealer is obligated to deliver Shares 

  

 

 6
 

 

	
  

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Merger Events:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger
  Events:

  	
   

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

  

 

 7
 

 

	
  

  	
   

  	
  the Indenture (such a Public Acquirer Change in
  Control, a “PACC Event”), the
  Calculation Agent may adjust in good faith and a commercially reasonable
  manner any one or more of the nature of the Shares, the Number of Options,
  the Option Entitlement and any other variable relevant to the exercise,
  settlement or payment for the Transaction to preserve the fair value of the
  Transaction to Dealer (such adjustments, the “Public Acquirer Change in Control Adjustments”); provided that, as a condition precedent
  to the adjustments contemplated above, Counterparty and, if Counterparty is
  not the issuer of the “Public Acquirer Common Stock”, as defined in the
  Indenture, the issuer of the Public Acquirer Common Stock and Dealer, shall,
  prior to the effective date of such Public Acquirer Change in Control, have
  entered into such documentation containing representations, warranties and agreements
  relating to securities law and other issues as requested by Dealer that
  Dealer has determined, in its reasonable discretion, to be reasonably
  necessary or appropriate to allow Dealer to continue as party to the
  Transaction, as adjusted, and to preserve its hedging or hedge unwind
  activities in connection with the Transaction in a manner compliant with
  applicable legal, regulatory or self-regulatory requirements, or with related
  policies and procedures applicable to Dealer.

  
	
   

  	
   

  	
   

  
	
  Nationalization, Insolvency
  

  or Delisting:

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Additional Disruption
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)               Change in Law:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (b)              Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  For all applicable Additional Disruption Events,
  Dealer

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and
  Acknowledgments Regarding Hedging Activities:

  	
   

  	
  Applicable

  

 

 8
 

 

	
  Additional Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  3.               Calculation
  Agent:

  	
   

  	
  Dealer.

  
	
   

  	
   

  	
   

  
	
  4.               Account
  Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dealer Payment
  Instructions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Bank of New York

  	
   

  	
   

  
	
  ABA 

  	
   

  	
   

  
	
  Deutsche Bank
  Securities Inc.

  	
   

  	
   

  
	
  A/C 

  	
   

  	
   

  
	
  FFC: 

  	
   

  	
   

  
	
  Ticket #: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Counterparty Payment
  Instructions:

  	
   

  
	
   

  	
   

  	
   

  
	
  To be provided by
  Counterparty.

  	
   

  
	
   

  	
   

  	
   

  
	
  5.               Offices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Office of Dealer
  for the Transaction is:

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  The Office of
  Counterparty for the Transaction is:

  
	
   

  	
   

  	
   

  
	
  176 South Street,
  Hopkinton, MA 01748

  
	
   

  	
   

  	
   

  
	
  6.               Notices:
  For purposes of this Confirmation:

  
	
   

  	
   

  	
   

  
	
  (a)                                  Address
  for notices or communications to Counterparty:

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  EMC Corporation

  
	
  Attn:

  	
   

  	
  Office of General Counsel

  
	
  Telephone:

  	
   

  	
  (508) 435-1000

  
	
  Facsimile:

  	
   

  	
  (508) 497-6915

  
	
  To:

  	
   

  	
  EMC Corporation

  
	
   

  	
   

  	
   

  
	
  (b)                                 Address
  for notices or communications to Dealer:

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Deutsche Bank Securities Inc.

  
	
  Attn:

  	
   

  	
  Andrew Yaeger and Lee Frankenfield

  
	
  Telephone:

  	
   

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

  
	
  Email:

  	
   

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

  
	
  To:

  	
   

  	
  Deutsche Bank Securities Inc.

  
									

 

7.               Representations,
Warranties and Agreements:

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

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

 9
 

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

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

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

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

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

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

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

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

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

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

 10
 

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

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

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

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

8.  Other Provisions:

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

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

“Amendment Event” means that Counterparty
amends, modifies, supplements or obtains a waiver in respect of any term of the
Indenture or the Convertible Debentures governing the principal amount, coupon,
maturity, repurchase obligation of Counterparty, redemption right of
Counterparty, any term relating to conversion of the Convertible Debentures
(including changes to the conversion price, conversion settlement dates or
conversion conditions), or any term that would require consent of the holders
of not less than 100% of the principal amount of the 

 11
 

Convertible Debentures to
amend, in each case without the prior consent of Dealer, such consent not to be
unreasonably withheld.

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

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

	
  Share
  Termination Alternative:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery

  Property: 

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Unit Price:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Share Termination Delivery Unit

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  

 

 12
 

 

	
  Other applicable provisions: 

  	
   

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

  

 

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

(e)                                  Repurchase Notices.  Counterparty shall, on any day on which
Counterparty effects any repurchase of Shares, promptly give Dealer a written
notice of such repurchase (a “Repurchase
Notice”) on such day if, following such repurchase, the Notice
Percentage as determined on such day is (i) greater than 6% and (ii) greater by
0.5% than the Notice Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater
than the Notice Percentage as of the date hereof).  The “Notice
Percentage” as of any day is the fraction, expressed as a
percentage, the numerator of which is the Number of Shares and the denominator
of which is the number of Shares outstanding on such day.  In the event that Counterparty fails to
provide Dealer with a Repurchase Notice on the day and in the manner specified
in this Section 8(e) then Counterparty agrees to indemnify and hold harmless
Dealer, its affiliates and their respective directors, officers, employees,
agents and controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any
and all losses, 

 13
 

claims,
damages and liabilities (or actions in respect thereof), joint or several, to
which such Indemnified Party may become subject under applicable securities
laws, including without limitation, Section 16 of the Exchange Act, relating to
or arising out of such failure.  If for
any reason the foregoing indemnification is unavailable to any Indemnified
Party or insufficient to hold harmless any Indemnified Party, then Counterparty
shall contribute, to the maximum extent permitted by law, to the amount paid or
payable by the Indemnified Party as a result of such loss, claim, damage or
liability.  In addition, Counterparty
will reimburse any Indemnified Party for all expenses (including reasonable
counsel fees and expenses) as they are incurred (after notice to Counterparty)
in connection with the investigation of, preparation for or defense or
settlement of any pending or threatened claim or any action, suit or proceeding
arising therefrom, whether or not such Indemnified Party is a party thereto and
whether or not such claim, action, suit or proceeding is initiated or brought
by or on behalf of Counterparty.  This
indemnity shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant
to this Confirmation or the Agreement shall inure to the benefit of any
permitted assignee of Dealer.

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

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

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

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

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

 14
 

Number of Shares
hereunder and (B) the denominator of which is the number of Shares outstanding
on such day.

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

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

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

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

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

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

 15

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

	
  

  	
  Yours
  faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG, LONDON BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Lee Frankenfield

  	
   

  
	
   

  	
  Name: Lee Frankenfield

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Richard Kennedy 

  	
   

  
	
   

  	
  Name: Richard Kennedy

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG, NEW YORK BRANCH

  
	
   

  	
  acting solely as Agent in connection

  
	
   

  	
  with this Transaction

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Lee Frankenfield

  	
   

  
	
   

  	
  Name: Lee Frankenfield

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Lee Frankenfield

  	
   

  
	
   

  	
  Name: Andrew Yeager

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed and accepted by:

  	
   

  
	
   

  	
   

  
	
  EMC CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Irina Simmons

  	
   

  
	
   

  	
  Name: Irina Simmons

  	
   

  
	
   

  	
  Title: Senior Vice President and Treasurer

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