Document:

exv10wxby

 

Exhibit 10(b)

Transaction

	 	 	 	 	 
	Date:

	 	28 September, 2006	 	 
	 
	 	 	 	 
	To:

	 	Campbell Soup Company	 	 
	 

	 	1 Campbell Place, Box 29D	 	 
	 

	 	Camden, NJ 08103	 	 
	 
	 	 	 	 
	 

	 	Attention:       William J. O’Shea — Vice President — Treasurer
	 	 
	 

	 	Facsimile:        (856) 342-4807	 	 
	 

	 	Telephone:      (856) 342-3946	 	 
	 
	 	 	 	 
	From:

	 	Lehman Brothers Finance S.A.	 	 
	 

	 	c/o Lehman Brothers, Inc	 	 
	 

	 	Andrew Yare — Transaction Management Group	 	 
	 

	 	Facsimile:        646-885-9546 (United States of America)	 	 
	 

	 	Telephone:      212-526-9986	 	 
	 
	 	 	 	 
	Ref. Numbers:

	 	Risk ID: [] / Effort ID: N[] / Global Deal ID: []	 	 

Dear Sir or Madam:

The purpose of this communication (this “Confirmation”) is to confirm the terms and conditions of
the transaction (the “Transaction”) entered into between Lehman Brothers Finance S.A. (“Party A”)
and Campbell Soup Company (“Party B”) on the Trade Date specified below. This Confirmation
constitutes a “Confirmation” as referred to in the Agreement specified below. This Confirmation is
sent on behalf both Party A and Lehman Brothers Inc. (“LBI”).

This Confirmation evidences a complete and binding agreement between Party A and Party B as to the
terms of the Transaction to which this Confirmation relates. This Confirmation shall supplement,
form a part of, and be subject to an agreement in the form of the 1992 ISDA Master Agreement
(Multicurrency-Cross Border) (the “Agreement”) as if we had executed an agreement in such form (but
without any Schedule) on the Trade Date of the Transaction. In the event of any inconsistency
between the provisions of the Agreement and this Confirmation, this Confirmation will prevail for
the purpose of the Transaction.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”) are incorporated into this Confirmation. In the event of any inconsistency between the
Equity Definitions and this Confirmation, this Confirmation will govern. The Transaction shall
constitute a Share Forward Transaction for the purposes of the Equity Definitions. Transaction
payments made subsequent to the Initial Share Purchase (as defined below) are intended to be in
substance and effect an adjustment to the Initial Share Purchase Amount.

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

	 	 	 	 	 
	 

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

	 	Trade Date:
	 	September 28, 2006

 

 

	 	 	 	 	 
	 

	 	Buyer:
	 	Party B
	 
	 	 	 	 
	 

	 	Seller:
	 	Party A
	 
	 	 	 	 
	 

	 	Shares:
	 	Capital stock, par value $0.0375 per share, of Party
B, Ticker Symbol: (“CPB”)
	 
	 	 	 	 
	 

	 	Number of Shares:
	 	8,344,923
	 
	 	 	 	 
	 

	 	Initial Share Purchase:
	 	On the Initial Purchase Settlement Date, Party A
shall deliver to Party B the Number of Shares and
Party B will pay to Party A an amount equal to the
product of the Number of Shares multiplied by the
Initial Purchase Price (the “Initial Share Purchase
Amount”).
	 
	 	 	 	 
	 

	 	Initial Purchase Price:
	 	USD 35.95
	 
	 	 	 	 
	 

	 	Initial Purchase Settlement Date:
	 	One Scheduled Trading Day immediately following the
Trade Date.
	 
	 	 	 	 
	 

	 	Prepayment:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	Variable Obligation:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	Exchange:
	 	New York Stock Exchange
	 
	 	 	 	 
	 

	 	Related Exchange:
	 	None
	 
	 	 	 	 
	 

	 	Transaction Fee:
	 	Party B shall pay to Party A a fee equal to the
product of (i) the Number of Shares multiplied by
(ii) USD 0.02. The Transaction Fee shall be payable
by Party B on the Initial Purchase Settlement Date.
	 
	 	 	 	 
	Valuation:	 	 
	 
	 	 	 	 
	 

	 	Trading Period:
	 	The period of consecutive Trading Days from, and
including, the first Scheduled Trading Day
immediately following the last day of the Initial
Hedge Period, as such term is defined in the
Confirmation between Party A and Party B dated
September 28, 2006 evidencing the collared
accelerated share repurchase transaction to, and
including, the Exchange Business Day on which the
Daily Share Balance is first reduced to zero.
	 
	 	 	 	 
	 

	 	Trading Day:
	 	Any Scheduled Trading Day that is not a Disrupted Day.
	 
	 	 	 	 
	 

	 	Disrupted Day:
	 	The definition of “Disrupted Day” in Section 6.4 of
the Equity Definitions shall be amended by adding the
following sentence after the first sentence: “A
Scheduled Trading Day on which the Exchange fails to
open during its regular trading session will not be a
Disrupted Day if the Calculation Agent determines
that such failure will not have a material impact on
Party A’s ability to purchase the relevant Number of
Daily Reference Shares.” Calculation Agent shall
notify Party A and Party B of any determination that
such failure did not have a material impact on Party
A’s ability to purchase the relevant Number of Daily
Reference Shares prior to 9:00 A.M. (New York time)
on the Scheduled Trading

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	 	Day immediately following such determination.

	 
	 	 	 	 
	 

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

	 	Valuation Date:
	 	
The last Trading Day of the Trading Period.
	 
	 	 	 	 
	Settlement Terms:	 	 
	 
	 	 	 	 
	 

	 	Settlement Method Election:
	 	Applicable; provided that references in the
Equity Definitions to “Physical Settlement”
shall be deemed to be references to “Net
Share Settlement” as defined herein.
	 
	 	 	 	 
	 

	 	Electing Party:
	 	Party B
	 
	 	 	 	 
	 

	 	Settlement Method Election Date:
	 	Three Scheduled Trading Days prior to June
29, 2007; provided that such date shall be
delayed by the number of Disrupted Days
occurring during the period beginning on,
and including, the first Schedule Trading
Day immediately following the Trade Date and
ending on, but excluding, the Valuation
Date.
	 
	 	 	 	 
	 

	 	Default Settlement Method:
	 	Net Share Settlement
	 
	 	 	 	 
	Cash Settlement Terms:	 	 
	 
	 	 	 	 
	 

	 	Cash Settlement:
	 	If Cash Settlement is Applicable, Section
8.4(a) of the Equity Definitions shall
govern and be applicable to the Transaction.
	 
	 	 	 	 
	 

	 	Settlement Currency:
	 	USD
	 
	 	 	 	 
	 

	 	Settlement Price:
	 	The quotient of (i) the Cost of Reference
Shares divided by (ii) the Number of
Reference Shares.
	 
	 	 	 	 
	 

	 	Forward Cash Settlement Amount:
	 	Notwithstanding anything contained in
Section 8.5 of the Equity Definitions, the
Forward Cash Settlement Amount shall be
equal to (a) the Initial Share Purchase
Amount minus (b) the Cost of Reference
Shares plus (c) the Adjustment Amount minus
(d) the Adjustment Payment.
	 
	 	 	 	 
	 

	 	Cash Settlement Payment Date:
	 	Three Currency Business Days immediately
following the Valuation Date.
	 
	 	 	 	 
	 

	 	Adjustment Amount:
	 	For any day, the sum of the Daily Adjustment
Amounts for all days immediately preceding,
and including, such day.
	 
	 	 	 	 
	 

	 	Daily Adjustment Amount:
	 	An amount calculated on a daily basis during
the period from, and including, the Initial
Purchase Settlement Date to, and including,
the Settlement Date equal to, for each day
in such period, the product of (i) the sum
of (A) the Daily Balance for such day plus
(B) the previous day’s Adjustment Amount,
multiplied by (ii) the Daily Adjustment Rate
on such day; provided that, on the Valuation
Date, the Calculation Agent shall calculate
the Daily Adjustment Amounts for the period
from, and

3

 

	 	 	 	 	 
	 

	 	 	 	including, the Valuation Date to, and including, the
Settlement Date. For the avoidance of doubt, the
Adjustment Amount on the day prior to the Initial
Purchase Settlement Date shall be zero.
	 
	 	 	 	 
	 

	 	Daily Adjustment Rate:
	 	The quotient of (A) (i) FED-FUNDS minus 25 basis
points divided by (ii) 360 if the sum of the Daily
Balance and the Adjustment Amount is positive, and (B)
(i) FED-FUNDS plus 25 basis points divided by (ii) 360
if the sum of the Daily Balance and the Adjustment
Amount is negative.
	 
	 	 	 	 
	 

	 	Cost of Reference Shares:
	 	An amount calculated on a daily basis during the
Trading Period equal to the sum of the Daily Cost of
Repurchase Shares for all Trading Days during the
Trading Period up to and including such day.
	 
	 	 	 	 
	 

	 	Daily Cost of Reference Shares:
	 	For each Trading Day during the Trading Period, an
amount equal to the product of (i) the 10b-18 VWAP for
such Trading Day multiplied by (ii) the Number of Daily
Reference Shares for such Trading Day. For each day
prior to the first Trading Day of the Trading Period, the
Daily Cost of Reference Shares shall be zero.
	 
	 	 	 	 
	 

	 	Number of Daily Reference Shares:
	 	For each Trading Day during the Trading Period, an
amount equal to the least of (A) 48,237 Shares, (B) 40%
of the number of Shares that Party A is permitted to
purchase on any Exchange Business Day in compliance
with the limitation set forth in clause (b)(4) of Rule 10b-18 (as defined below), (C) 20% of such Trading Day’s
daily trading volume in the Shares on the Exchange and
(D) the Daily Share Balance on the day immediately
preceding such Trading Day. For each day prior to the
first Trading Day of the Trading Period, the Number of
Daily Reference Shares shall be equal to zero.
	 
	 	 	 	 
	 

	 	10b-18 VWAP:
	 	For any Trading Day that is not a Disrupted Day, the
10b-18 volume-weighted average price at which the
Shares trade as reported in the composite transactions
for the principal United States securities exchange on
which such Shares are then listed (or, if applicable, the
Successor Exchange), as determined by referring to the
Bloomberg Page “CPB.N <Equity> AQR SEC” (or any
successor thereto), absent manifest error. For any
Trading Day that is a Disrupted Day or for any Trading
Day that is not a Disrupted Day but on which a manifest
error occurs with respect to the Bloomberg Page
specified above, an amount determined in good faith by
the Calculation Agent as 10b-18 VWAP.
	 
	 	 	 	 
	 

	 	Daily Balance:
	 	An amount calculated on a daily basis during the period
from, and including, the Initial Purchase Settlement Date
to, and including, the Valuation Date, equal to the
difference between (i) the Initial Share Purchase

4

 

	 	 	 	 	 
	 

	 	 	 	Amount minus (ii) the Cost of Reference Shares as of
such day. For the avoidance of doubt, the Cost of
Reference Shares for the period from, and including, the
Initial Purchase Settlement Date to, but excluding, the
first Trading Day of the Trading Period shall be zero.
	 
	 	 	 	 
	 

	 	Daily Share Balance:
	 	On any day during the period from, and including, the
Initial Purchase Settlement Date to, and including, the
Valuation Date, the difference between (i) the Number
of Shares and (ii) the sum of the Number of Daily
Reference Shares for each Trading Day during the
period from, and including, the Initial Purchase
Settlement Date to, and including, such day (the
“Number of Reference Shares”).
	 
	 	 	 	 
	Net Share Settlement Terms:	 	 
	 
	 	 	 	 
	 

	 	Net Share Settlement:
	 	If Party B elects Net Share Settlement under the
Settlement Method Election and the Forward Cash
Settlement Amount is (i) a positive number, “Net Share
Settlement by Party A” below shall apply, or (ii) a
negative number, “Net Share Settlement by Party B”
below shall apply. For the avoidance of doubt, any
Shares delivered hereunder shall be free and clear of any
lien, charge, claim or encumbrance.
	 
	 	 	 	 
	 

	 	Net Share Settlement By Party A:
	 	On a day that is three Scheduled Trading Days after the
completion of the Net Share Settlement Period (the
“Refund Share Settlement Date”) Party A shall deliver
to Party B a number of Shares (the “Refund Shares”)
equal to the Forward Cash Settlement Amount divided
by the volume weighted average price at which Party A
purchased the Refund Shares. No fractional Shares shall
be delivered in connection with Net Share Settlement by
Party A, and the value of any fractional Share otherwise
deliverable shall be paid in cash to Party B on the
Refund Share Settlement Date (such value to be
determined by multiplying such fractional Share by the
Relevant Price on the last Exchange Business Day of the
Net Share Settlement Period).
	 
	 	 	 	 
	 

	 	Net Share Settlement Period:
	 	The period during which Party A makes purchases of the
Refund Shares, commencing on the Scheduled Trading
Day immediately following the Trading Period and
ending on the Scheduled Trading Day on which Party A
completes its purchases of the Refund Shares.

For each Trading Day during the Net Share Settlement
Period, Party A shall repurchase a number of Refund
Shares equal to the least of (A) 48,237 Shares, (B) 40%
of the number of Shares that Party A is permitted to
purchase on any Exchange Business Day in compliance
with the limitation set forth in clause (b)(4) of Rule 10b-18 (as defined below), (C) 20% of such day’s daily

5

 

	 	 	 	 	 
	 
	 	 	 	trading volume in the Shares on the Exchange and (D)
the Daily Share Balance on the day immediately
preceding such Trading Day.
	 
	 	 	 	 
	 

	 	Net Share Settlement Price:
	 	The closing price per Share as quoted by the Exchange
at the Valuation Time on the Valuation Date.
	 
	 	 	 	 
	 

	 	Net Share Settlement by Party B:
	 	Party B shall deliver an initial number of Shares on the
Settlement Date as determined by the following formula
(the “Net Settlement Shares”):
	 

	 	 	 	  s
	 

	 	 	 	 

	 

	 	 	 	  p
	 
	 

	 	 	 	Where,
	 
	 

	 	 	 	s = the absolute value of the Forward Cash Settlement Amount; and
	 
	 

	 	 	 	p = the Net Share Settlement Price;
	 
	 	 	 	 
	 

	 	 	 	provided, however, that if the Net Settlement Shares
delivered under a Net Share Settlement election (and
any Make-Whole Shares, as such term is defined below)
are not Free Shares or if the parties have not entered into
an Underwriting Agreement, p shall be the price
determined by the Calculation Agent. No fractional
Shares shall be delivered in connection with Net Share
Settlement by Party B, and the value of any fractional
Share otherwise deliverable shall be rounded down to
the nearest whole Share.
	 
	 	 	 	 
	 

	 	 	 	Party B has the right to elect that the Net Settlement
Shares (and any Make-Whole Shares) shall be (i) fully
registered, for resale by Party A (or an affiliate thereof)
(“Free Shares”) with such election being conditional
upon the execution and delivery of an agreement
between Party B and Party A of reasonable and
customary underwriting terms including but not limited
to indemnification, contribution and due diligence (the
“Underwriting Agreement”), or (ii) unregistered
Shares (“Restricted Shares”).
	 
	 	 	 	 
	 

	 	 	 	On the Valuation Date a balance (the “Settlement
Balance”) shall be established with an initial balance
equal to the absolute value of the Forward Cash
Settlement Amount. Following the sale of the Net
Settlement Shares by Party A, the Settlement Balance
shall be reduced by an amount equal to the aggregate
proceeds received by Party A upon the sale of the Net
Settlement Shares. If following the sale of some but not
all of the Net Settlement Shares the Settlement Balance
has been reduced to zero, no additional Net Settlement
Shares shall be sold by Party A and Party A shall
redeliver to Party B any remaining Net Settlement
Shares. If following the sale of the Net Settlement

6

 

	 	 	 	 	 
	 

	 	 	 	Shares the Settlement Balance has not been reduced to
zero, then Party B shall (i) promptly deliver to Party A
an additional number of Shares (the “Make-Whole
Shares”) equal to (x) the Settlement Balance as of such
date divided by (y) the closing price per Share on the
Exchange on the Exchange Business Day immediately
preceding the date such Shares are delivered, or, if the
Make-Whole Shares are not Free Shares or if the parties
have not entered into an Underwriting Agreement with
respect to such Make-Whole Shares, the price
determined by Party A in a commercially reasonable
manner (the “Make-Whole Price”) or (ii) promptly
deliver to Party A cash in an amount equal to the then
remaining Settlement Balance. This provision shall be
applied successively until the Settlement Balance is
reduced to zero.
	 
	 	 	 	 
	Adjustment Payment:	 	An amount, as determined on the Valuation Date, equal
to the sum, for each Adjustment Payment Reference
Date that occurs during the Trading Period, of an
amount equal to the product of (i) USD 0.20, multiplied
by (ii) the Daily Share Balance as of the opening of
trading on the Exchange on the third Scheduled Trading
Day immediately preceding such Adjustment Payment
Reference Date, multiplied by (iii) the sum of (A) one
plus (B) the product of (x) the sum of FED-FUNDS
(determined as of the Adjustment Payment Calculation
Date to which the relevant Adjustment Payment
Reference Date relates) plus 25 basis points, multiplied
by (y) the quotient of the number of days from and
including such Adjustment Payment Calculation Date to
and including the expected Valuation Date, divided by
360.
	 
	 	 	 	 
	 

	 	 	 	“Adjustment Payment Calculation Date” shall mean
each of October 30, 2006, January 29, 2007, April 30,
2007 and July 30, 2007. “Adjustment Payment
Reference Date” shall mean each of October 9, 2006
(in the case of the October 30, 2006 Adjustment
Payment Calculation Date), January 2, 2007 (in the case
of the January 29, 2007 Adjustment Payment
Calculation Date), April 9, 2007 (in the case of the
April
30, 2007 Adjustment Payment Calculation Date) and
July 9, 2007 (in the case of the July 30, 2007
Adjustment Payment Calculation Date).
	 
	 	 	 	 
	Share Adjustments:	 	 
	 
	 

	 	Method of Adjustment:
	 	Calculation Agent Adjustment
	 
	 	 	 	 
	Extraordinary Events:	 	 
	 
	 	 	 	 
	Consequences of Merger Events:	 	 

7

 

	 	 	 	 	 	 	 
	 

	 	 	 	Share-for-Share:
	 	Calculation Agent Adjustment
	 
	 	 	 	 	 	 
	 

	 	 	 	Share-for-Other:
	 	Cancellation and Payment
	 
	 	 	 	 	 	 
	 

	 	 	 	Share-for-Combined:
	 	Component Adjustment
	 
	 	 	 	 	 	 
	Tender Offer:	 	Not Applicable
	 
	 	 	 	 	 	 
	 

	 	 	 	New Shares:
	 	The definition of “New Shares” in Section 12.1 of the
Equity Definitions shall be amended by deleting
subsection (i) in its entirety and replacing it with the
following: “(i) publicly quoted, traded or listed on the
New York Stock Exchange, the American Stock
Exchange or the NASDAQ Stock Market LLC (or their
respective successors) and”.
	 
	 	 	 	 	 	 
	Composition of Combined Consideration:	 	Not Applicable
	 
	 	 	 	 	 	 
	Nationalization, Insolvency or Delisting:	 	Cancellation and Payment
	 
	 	 	 	 	 	 
	Delisting:	 	The definition of “Delisting” in Section 12.6 of the
Equity Definitions shall be deleted in its entirety and
replaced with the following: ‘“Delisting” means that the
Exchange announces that pursuant to the rules of such
Exchange, the Shares cease (or will cease) to be listed,
traded or publicly quoted on the Exchange for any
reason (other than a Merger Event or Tender Offer) and
are not immediately re-listed, re-traded or re-quoted on
the New York Stock Exchange, the American Stock
Exchange or the NASDAQ Stock Market LLC (or their
respective successors)”.
	 
	 	 	 	 	 	 
	Additional Disruption Events:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Change in Law:
	 	Applicable
	 
	 	 	 	 	 	 
	 

	 	 	 	Insolvency Filing:
	 	Applicable
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	The definition of “Insolvency Filing” in Section 12.9 of
the Equity Definitions shall be amended by deleting the
clause “provided that such proceedings instituted or
petitions presented by creditors and not consented to by
Party B shall not be deemed an Insolvency Filing” at
the end of such definition and replacing it with the
following: “; or it has instituted against it a proceeding
seeking a judgment of insolvency or bankruptcy or any
other relief under any bankruptcy or insolvency law or
other similar law affecting creditors’ rights, or a
petition is presented for its winding-up or liquidation
by a creditor and such proceeding is not dismissed,
discharged, stayed or restrained in each case within
fifteen (15) days of the institution or presentation
thereof.”
	 
	 	 	 	 	 	 
	 

	 	 	 	Increased Cost of Stock Borrow:
	 	Applicable
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Section 12.9(a)(viii) of the Equity Definitions shall be

8

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	deleted in its entirety and replaced with the following:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	“Increased Cost of Stock Borrow” means that the
Hedging Party would earn a Stock Collateral Rate that
is less than the Initial Stock Loan Rate. For greater
certainty, the Stock Collateral Rate will be deemed to
be less than the Initial Stock Loan Rate if the spread
below the applicable floating rate increases.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Section 12.9 (b)(v) of the Equity Definitions is
amended by deleting all references to “a rate equal to
or less than the Initial Stock Loan Rate” and replacing
them with “a Stock Collateral Rate that is equal to or
greater than the Initial Stock Loan Rate”.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	“Stock Collateral Rate” means the rate of return on
collateral posted in connection with any Shares
borrowed in connection with the Transaction, net of
any costs or fees (including, for greater certainty, any
lender’s borrow fees).
	 
	 	 	 	 	 	 
	 

	 	 	 	Initial Stock Loan Rate:
	 	FED-FUNDS minus 25 basis points, as adjusted by the
Calculation Agent to reflect any subsequent Price
Adjustment (as such term is defined in the Equity
Definitions) due to an Increased Cost of Stock Borrow.
	 
	 	 	 	 	 	 
	 

	 	 	 	FED-FUNDS:
	 	For any day, the rate set forth for such day opposite the
caption “Federal funds”, as such rate is displayed on
the page “FedsOpen <Index> <GO>” on the
BLOOMBERG Professional Service, or any successor
page; provided that if no rate appears for any day on
such page, the rate for the immediately preceding day
for which a rate does so appear shall be used for such
day.
	 
	 	 	 	 	 	 
	 

	 	 	 	Hedging Party:
	 	Party A
	 
	 	 	 	 	 	 
	 

	 	 	 	Determining Party:
	 	Party A shall be the Determining Party in connection
with all Extraordinary Events.
	 
	 	 	 	 	 	 
	Acknowledgments:	 	 
	 
	 	 	 	 	 	 
	 	 	Non-Reliance:	 	Applicable
	 
	 	 	 	 	 	 
	 	 	Agreements and Acknowledgments	 	Applicable
	 	 	Regarding Hedging Activities:	 	 
	 
	 	 	 	 	 	 
	 	 	Additional Acknowledgments:	 	Applicable
	 
	 	 	 	 	 	 
	Miscellaneous:	 	 
	 
	 	 	 	 	 	 
	 	 	Bankruptcy Code:	 	Without limiting any other protections under the
Bankruptcy Code (Title 11 of the United States Code)
(the “Bankruptcy Code”), the parties hereto intend
for:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(a) The Transaction and the Agreement to be a “swap
agreement” as defined in the Bankruptcy Code, and the

9

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	parties hereto to be entitled to the protections afforded
by, among other Sections, Sections 560, 561 and 562
of the Bankruptcy Code.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(b) A party’s right to liquidate the Transaction, to offset
or net termination values, payment amounts or other
transfer obligations and to exercise any other remedies
upon the occurrence of any Event of Default or
Termination Event under the Agreement or the
Transaction to constitute a “contractual right” as
described in Sections 560 and 561 of the Bankruptcy
Code.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(c) Any cash, securities or other property provided as
performance assurance, credit support or collateral with
respect to the Transaction or the Agreement to
constitute “transfers” under a “swap agreement” as
defined in the Bankruptcy Code.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(d) All payments for, under or in connection with the
Transaction or the Agreement, all payments for any
securities or other assets and the transfer of such
securities or other assets to constitute “transfers” under
a “swap agreement” as defined in the Bankruptcy
Code.
	 
	 	 	 	 	 	 
	Additional Representations, Warranties
and

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

	 	 	 	 	 	(a) (i) It is not entering into the Transaction on behalf
of or for the account of any other person or entity, and
will not transfer or assign its obligations under the
Transaction or any portion of such obligations to any
other person or entity except in compliance with
applicable laws and the terms of the Transaction; (ii) it
has provided to LBI, as agent for Party A, financial and
other information concerning its investment objectives
and risk tolerance, which information is contained in its
LBI account documentation, and has not been rendered
misleading or obsolete; (iii) it understands that the
Transaction is subject to complex risks which may
arise without warning, may at times be volatile, and
that losses may occur quickly and in unanticipated
magnitude; (iv) it is authorized to enter into the
Transaction and such action does not violate any laws
of its jurisdiction of organization or residence
(including, but not limited to, any applicable position
or exercise limits set by any self-regulatory
organization, either acting alone or in concert with
others) or the terms of any agreement to which it is a
party; (v) it has consulted with its legal advisor(s) and

10

 

	 	 	 
	 

	 	has reached its own conclusions about the Transaction,
and any legal, regulatory, tax, accounting or economic
consequences arising from the Transaction; and (vi) it
has concluded that the Transaction is suitable in light
of its own investment objectives, financial capabilities
and expertise.
	 
	 	 
	 

	 	(b) At all times until termination of the Transaction,
Party B is an “eligible contract participant” as the term
is defined in Section 1a(12) of the Commodity
Exchange Act, as amended.
	 
	 	 
	 

	 	(c) Neither Party A nor any of its affiliates has advised
Party B with respect to any legal, regulatory, tax,
accounting or economic consequences arising from the
Transaction, and neither Party A nor any of its affiliates
is acting as agent (other than LBI as dual agent if
specified above), or advisor for Party B in connection
with the Transaction;
	 
	 	 
	 

	 	(d) Party B is not on the date hereof, in possession of
any material non-public information regarding Party B.
	 
	 	 
	 

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

	 	(e) Each of its required filings under all applicable
securities laws have been filed.
	 
	 	 
	 

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

	 	(g) Party B shall not be entitled to elect Cash
Settlement or Net Share Settlement if prior to such
election Party B has entered into any obligation that
would contractually limit it from effecting Cash
Settlement or Net Share Settlement under the
Transaction.
	 
	 	 
	 

	 	(h) It 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.
	 
	 	 
	Additional Termination Events:

	 	Notwithstanding any other provision hereof, if on any
day occurring after the Trade Date Party B declares a
distribution, issue or dividend to existing holders of the
Shares with a record date on or prior to the Valuation

11

 

	 	 	 
	 

	 	Date of (i) an extraordinary cash dividend, (ii) a regular
quarterly cash dividend (A) in an amount greater than
USD 0.20 per Share per quarter (quarterly dividends in
such amounts, “Regular Quarterly Dividend”) or (B)
with a record date five or more Exchange Business
Days prior to or after the expected record dates for such
Regular Quarterly Dividends (currently expected to
occur on October 9, 2006, January 2, 2007, April 9,
2007 and July 9, 2007), (iii) securities or share capital
of another issuer acquired or owned (directly or
indirectly) by Party B as a result of a spin-off or other
similar transaction or (iv) any other type of securities
(other than Shares, which may constitute a Potential
Adjustment Event), rights or warrants or other assets,
in any case for payment (cash or other consideration) at
less than the prevailing market price as determined by
the Calculation Agent then Party A shall have the right
to designate any Scheduled Trading Day to be the last
day of the Trading Period on at least one Scheduled
Trading Day’s notice. Upon the designation of such
day, (i) the “Initial Share Purchase Amount” shall be
deemed to equal the product of (A) the Number of
Reference Shares as of the Scheduled Trading Day
designated as the last day of the Trading Period
multiplied by (B) the Initial Purchase Price, (ii) the
“Number of Shares” shall be deemed to equal the
Number of Reference Shares as of the Scheduled
Trading Day designated as the last day of the Trading
Period, (iii) the “Valuation Date” shall be deemed the
Scheduled Trading Day designated as the last day of
the Trading Period and (iv) Party A or Party B, as the
case may be, shall make the payments or deliveries due
hereunder in respect of the Transaction with terms
modified as described in the immediately preceding
clauses (i) through (iii). In addition, upon such
designation by Party A, Party A shall deliver to Party B
an amount equal to the Initial Purchase Price multiplied
by the Daily Share Balance as of such day, and Party B
shall deliver to Party A either (A) a number of Free
Shares equal to the Daily Share Balance on such day,
(B) a number of Restricted Shares with an equivalent
value, as determined by the Calculation Agent, to a
number of Free Shares equal to the Daily Share
Balance on such day or (C) an amount of cash
necessary for Party A to purchase Shares equal to the
Daily Share Balance in compliance with all applicable
laws and regulations.
	 
	 	 
	Additional Provisions:

	 	If Party B elects for Net Share Settlement to apply,
Party B may deliver Free Shares in respect of its
settlement obligation only if the following conditions

12

 

	 	 	 
	 

	 	have been satisfied (the “Registration Provisions”):
	 
	 	 
	 

	 	(i) a registration statement (which may be a shelf
registration statement filed pursuant to Rule 415 under
the Securities Act of 1933) covering public resale by
Party A (or an affiliate thereof) of any Shares
(including any Make-Whole Shares) delivered by Party
B to Party A under a Net Share Settlement election
(“Settlement Shares”) shall have been filed with, and
declared effective by, the Securities and Exchange
Commission (“SEC”) no later than one Exchange
Business Day prior to the Valuation Date, and such
Registration Statement continues to be in effect at all
times to and including the date that Party A or its
affiliate(s) has fully and finally sold any Settlement
Shares hereunder;
	 
	 	 
	 

	 	(ii) the contents of such registration statement and of
any prospectus supplement to the prospectus included
therein (including, without limitation, any sections
describing the plan of distribution) shall be reasonably
satisfactory to Party A;
	 
	 	 
	 

	 	(iii) Party A shall have been afforded a reasonable
opportunity to conduct a due diligence investigation
with respect to Party B customary in scope for
transactions pursuant to which Party A (or an affiliate
thereof) acts as an underwriter of equity securities and
the results of such investigation are satisfactory to
Party A, in its reasonable discretion; and
	 
	 	 
	 

	 	(iv) as of the Valuation Date, an Underwriting
Agreement shall have been entered into with Party A in
connection with the public resale of the Settlement
Shares by Party A (or an affiliate thereof).
	 
	 	 
	 

	 	Notwithstanding the foregoing, if Party B elects for Net
Share Settlement to apply and Party B delivers
Restricted Shares in respect of its settlement obligation,
Party A shall attempt to sell the Net Settlement Shares,
if any, pursuant to an exemption from registration
under the Securities Act by soliciting bids from
interested parties in a manner exempt from registration.
Party B acknowledges and agrees that if it issues
Settlement Shares to Party A that are Restricted Shares,
the number of Shares to be delivered shall be greater
than the number of Free Shares that would need to be
delivered.
	 
	 	 
	Maximum Number of Shares:

	 	The number of Shares that may be issued at settlement,
or otherwise, by Party B pursuant to the Transaction
will be limited to the total Shares authorized but not
outstanding, reduced by the total amount of

13

 

	 	 	 
	 

	 	contingently issuable Shares. In any event, the number
of Shares issuable by Party B at settlement shall not
exceed 25,000,000 Shares. If the number of Shares to
be issued at settlement by Party B exceeds the limit in
the preceding sentences, Party B will use its best
efforts to obtain all necessary approvals to issue
additional Shares to enable it to satisfy all obligations
hereunder.
	 
	 	 
	Company Purchases:

	 	Without the prior written consent of Party A, which
shall not be unreasonably delayed or denied, Party B
shall not (except through Party A or an affiliate
thereof), and shall cause its affiliated purchasers (as
defined in Rule 10b-18 of the Exchange Act) not to,
directly or indirectly (including by means of a
derivative instrument) enter into any transaction to
purchase any Shares during the Trading Period and
thereafter until all payments or deliveries hereunder
have been made.
	 
	 	 
	Set-Off and Netting:

	 	Each party hereto agrees not to set-off or net amounts
due from the other party hereto with respect to the
Transaction hereunder against amounts due from such
other party to such party under obligations other than
Equity Contracts. Section 2(c) of the Agreement as it
applies to payments due with respect to the Transaction
hereunder shall remain in effect and is not subject to the
first sentence of this provision. In addition, upon the
occurrence of an Event of Default or Termination Event
with respect to a party hereto as the Defaulting Party or
the Affected Party (“X”), the other party hereto (“Y”)
will have the right (but not be obliged) without prior
notice to X or any other person to set-off or apply any
obligation of X under an Equity Contract owed to Y (or
any Affiliate of Y) (whether or not matured or
contingent and whether or not arising under the
Agreement, and regardless of the currency, place of
payment or booking office of the obligation) against any
obligation of Y (or any Affiliate of Y) under an Equity
Contract owed to X (whether or not matured or
contingent and whether or not arising under the
Agreement, and regardless of the currency, place of
payment or booking office of the obligation). Y will
give notice to the other party of any set-off or
application effected under this provision. “Equity
Contract” shall mean for purposes of this provision any
transaction relating to Shares between X and Y (or any
Affiliate of Y) that qualifies as ‘equity’ under applicable
accounting rules. Amounts (or the relevant portion of
such amounts) subject to set-off may be converted by Y
into USD at the rate of exchange at which such party
would be able, acting in a reasonable manner and in

14

 

	 	 	 
	 

	 	good faith, to purchase the relevant amount of such
currency, and any obligation to deliver any non-cash
property shall be converted into an obligation to deliver
cash in an amount equal to the value of such property as
of the Early Termination Date, as determined by Y;
provided that in the case of a set-off of any obligation to
release or deliver assets against any right to receive
fungible assets, such obligation and right shall be set off
in kind. If any obligation is unascertained, Y may in
good faith estimate that obligation and set-off in respect
of the estimate, subject to the relevant party accounting
to the other when the obligation is ascertained. Nothing
in this provision shall be effective to create a charge or
other security interest. This provision shall be without
prejudice and in addition to any right of set-off,
combination of accounts, lien or other right to which
any party is at any time otherwise entitled (whether by
operation of law, contract or otherwise).
	 
	 	 
	No Collateral:

	 	Notwithstanding any provision of the Agreement, or any
other agreement between the parties, to the contrary, the
obligations of Party B hereunder are not secured by any
collateral.
	 
	 	 
	Rule 10b-18:

	 	During the Trading Period and the Net Share Settlement
Period and with respect to any purchases executed as a
result of an occurrence of an Additional Termination
Event, Party A agrees to make all purchases of Shares in
a manner that would comply with the limitations set
forth in clauses (b)(1), (b)(2), (b)(4) and (c) of Rule10b-18 under the Securities Exchange Act of 1934 (“Rule
10b-18”) and in clause (b)(3) solely with respect to the
Transaction and not any trades executed by Party A that
are not related to the Transaction, as if such rule was
applicable to such purchases.
	 
	 	 
	 

	 	Party B shall, at least one day prior to the first day of the
Trading Period, notify Party A in writing of the total
number of Shares purchased in Rule 10b-18 purchases
of blocks pursuant to the once-a-week block exception
set forth in clause (b)(4) of Rule 10b-18 by Party B or
any of its affiliates during each of the four calendar
weeks preceding such day and during the calendar week
in which such day occurs (“Rule 10b-18 purchase” and
“blocks” each as defined in Rule 10b-18).
	 
	 	 
	Rule 10b5-1:

	 	It is the intent of the parties that the Transaction comply
with the requirements of Rule 10b5-1(c)(1)(i)(B) of the
Exchange Act (“Rule 10b5-1”), and the parties agree
that this Confirmation shall be interpreted to comply
with the requirements of Rule 10b5-1(c), and Party B
shall take no action that results in the Transaction not so
complying with such requirements. Without limiting

15

 

	 	 	 
	 

	 	the generality of the preceding sentence, Party B
acknowledges and agrees that (A) Party B does not
have, and shall not attempt to exercise, any influence
over how, when or whether Party A effects any
purchases in connection with the Transaction, (B)
during the Trading Period and the Net Share Settlement
Period, if any, neither Party B nor its officers or
employees shall, directly or indirectly, communicate any
information regarding Party B or the Shares to any
employee of Party A or its affiliates who is directly
involved with the execution of the Transaction and is
listed in Schedule A hereto, as such list may be
amended from time to time by Party A upon notice to
Party B, (C) Party B is entering into the Transaction in
good faith and not as part of a plan or scheme to evade
compliance with federal securities laws including,
without limitation, Rule 10b-5 and (D) Party B will not
alter or deviate from this Confirmation or enter into or
alter a corresponding hedging transaction with respect to
the Shares. Party B also acknowledges and agrees that
any amendment, modification, waiver or termination of
this Confirmation must be effected in accordance with
the requirements for the amendment or termination of a
“plan” as defined in Rule 10b5-1(c). Without limiting
the generality of the foregoing, any such amendment,
modification, waiver or termination shall be made in
good faith and not as part of a plan or scheme to evade
the prohibitions of Rule 10b-5 and no such amendment,
modification, waiver or termination shall be made at any
time at which Party B or any officer or director of Party
B is aware of any material non-public information
regarding Party B or the Shares.
	 
	 	 
	Certain Payments and Deliveries:

	 	Notwithstanding anything to the contrary herein, or in
the Equity Definitions, if at any time (i) an Early
Termination Date occurs and Party B or Party A would
be required to make a payment pursuant to Sections 6(d)
and 6(e) of the Agreement, (ii) a Tender Offer occurs
and Party B or Party A would be required to make a
payment pursuant to Sections 12.3 and 12.7 of the
Equity Definitions, (iii) a Merger Event occurs and
Party B or Party A would be required to make a
payment pursuant to Sections 12.2 and 12.7 of the
Equity Definitions, (iv) a Nationalization, Insolvency or
Delisting occurs and Party B or Party A would be
required to make a payment pursuant to Section 12.6 of
the Equity Definitions or (v) an Additional Disruption
Event occurs and Party B or Party A would be
required to make a payment pursuant to Sections 12.8
and 12.9 of the Equity Definitions, then in lieu of such
payment, Party B shall have the right to deliver to

16

 

	 	 	 
	 

	 	Party A, or Party B shall have the right to require Party
A to deliver to Party B, as the case may be at the time
such payment would have been due and in the
manner provided under “Physical Settlement” in the
Equity Definitions, a number of Shares (or, in the case
of a Merger Event, common equity securities of the
surviving entity or other consideration received by
holders of Shares pursuant to such Merger Event) equal
to the quotient obtained by dividing (A) the amount that
would have been so payable by (B) the fair market value
per Share (or per unit of such common equity securities
and/or such other consideration) of the Shares (or such
common equity securities and/or other consideration)
so delivered at the time of such delivery, as
determined by the Calculation Agent in a commercially
reasonable manner.
	 
	 	 
	Payments on Early Termination:

	 	Party A and Party B agree that for the Transaction, for
the purposes of Section 6(e) of the Agreement, Loss and
the Second Method will apply.
	 
	 	 
	Transfer:

	 	Notwithstanding Section 7 of the Agreement, Party A
may assign its rights and obligations under the
Transaction, in whole and not in part, to any Affiliate of
Lehman Brothers Holdings Inc. (“Holdings”) effective
upon delivery to Party B of the full unconditional
guarantee by Holdings, in favor of Party B, of the
obligations of such Affiliate.
	 
	 	 
	Governing Law:

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

	 	USD
	 
	 	 
	Waiver of Trial By Jury:

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

	 	Lehman Brothers Inc.

17

 

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

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

	 	 	 	 	 	 	 	 	 	 	 
	Yours sincerely,	 	 	 	Accepted and agreed to:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Lehman Brothers Finance S.A.	 	 	 	Campbell Soup Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Markus Bormann	 	 	 	By:	 	/s/ William J. O’Shea	 	 
	Name:

	 	 
Markus Bormann
	 	 	 	Name:
	 	 
William J. O’Shea	 	 
	Title:

	 	Director	 	 	 	Title:	 	V.P. — Treasurer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Anatoly Kozlov	 	 	 	 	 	 	 	 
	Name:

	 	 
Anatoly Kozlov
	 	 	 	 	 	 	 	 
	Title:
	 	Authorized Signatory	 	 	 	 	 	 	 	 

Execution time will be furnished upon Counterparty’s written request.

18

 

SCHEDULE A

	1.	 	Dmitry Noraev
	 
	2.	 	Omar Gzouli
	 
	3.	 	Arturo Ortiz de Zevallos
	 
	4.	 	Matthew Murphy

19exv10wxcy

 

Exhibit 10(c)

Lehman
Brothers

Transaction

	 	 	 
	Date:

	 	28 September, 2006
	 
	 	 
	To:

	 	Campbell Soup Company
	 

	 	1 Campbell Place, Box 29D
	 

	 	Camden, NJ 08103
	 
	 	 
	 

	 	Attention: William J. O’Shea
— Vice President — Treasurer
	 

	 	Facsimile: (856) 342-4807
	 

	 	Telephone: (856) 342-3946
	 
	 	 
	From:

	 	Lehman Brothers Finance S.A.
	 

	 	c/o Lehman Brothers, Inc
	 

	 	Andrew Yare — Transaction Management Group
	 

	 	Facsimile: 646-885-9546 (United States of America)
	 

	 	Telephone: 212-526-9986

Ref. Numbers: Risk ID: [] / Effort ID: N[] / Global Deal ID: []

Dear Sir or Madam:

The purpose of this communication (this “Confirmation”) is to confirm the terms and conditions of
the transaction (the “Transaction”) entered into between Lehman Brothers Finance S.A. (“Party A”)
and Campbell Soup Company (“Party B”) on the Trade Date specified below. This Confirmation
constitutes a “Confirmation” as referred to in the Agreement specified below. This Confirmation is
sent on behalf both Party A and Lehman Brothers Inc. (“LBI”)

This Confirmation evidences a complete and binding agreement between Party A and Party B as to the
terms of the Transaction to which this Confirmation relates. This Confirmation shall supplement,
form a part of, and be subject to an agreement in the form of the 1992 ISDA Master Agreement
(Multicurrency-Cross Border) (the “Agreement”) as if we had executed an agreement in such form (but
without any Schedule) on the Trade Date of the Transaction. In the event of any inconsistency
between the provisions of that agreement, or the Agreement, when executed, and this Confirmation,
this Confirmation will prevail for the purpose of the Transaction.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”) as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”) are incorporated into this Confirmation. In the event of any inconsistency between the
Equity Definitions and this Confirmation, this Confirmation will govern. The Transaction shall
constitute a Share Forward Transaction for the purposes of the Equity Definitions.

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

	 	 	 
	     Agent:

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

	 	September 28, 2006
	 
	 	 
	     Buyer:

	 	Party B

LEHMAN BROTHERS FINANCE S.A.

TALSTRASSE 82 — P.O. BOX 2828 — CH-8021 ZURICH — SWITZERLAND

TELEPHONE (41-1) 287 88 42

 

 

	 	 	 
	      Seller:

	 	Party A
	 
	 	 
	     Shares:

	 	Capital stock, par value $0.0375, of Party B, Ticker
Symbol: (“CPB”)
	 
	 	 
	     Prepayment:

	 	Applicable
	 
	 	 
	     Prepayment Amount:

	 	USD 300,000,000
	 
	 	 
	     Prepayment Date:

	 	One Exchange Business Day immediately following
the Trade Date.
	 
	 	 
	     Additional Payment:

	 	On the Prepayment Date, Party B shall pay to Party A
an amount equal to USD 1,246,029.
	 
	 	 
	     Initial Hedge Period:

	 	The period commencing
one Schedule Trading Day
immediately following the Trade Date and ending on
the Exchange Business Day on which Party A
completes the purchase of a number of Shares (the
“Hedge Shares”) necessary to establish its initial
hedge position with respect to the Transaction (such
date, the “Hedge Period End Date”). On the first
Scheduled Trading Day immediately following the Hedge Period End
Date, Party A shall provide written
notice (the “Confirmation
Pricing Supplement”) to
Party B in substantially
the form attached hereto as
Exhibit A, of the Hedging Price, the Minimum Shares
and the first day of the Trading Period.
	 
	 	 
	     Hedging Price:

	 	The arithmetic average
of the 10b-18 VWAPs for all
Trading Days during the Initial Hedge Period.
	 
	 	 
	     Exchange:

	 	New York Stock Exchange
	 
	 	 
	     Related Exchange:

	 	All Exchanges
	 
	 	 
	Valuation:
	 	 
	     Trading Period:

	 	The period of
consecutive Trading Days from and
including the first
Scheduled Trading Day following
the Hedge Period End Date to and including June 29,
2007; provided that, if by the scheduled expiration of
the Trading Period Party
A has not completed the
purchase of the Maximum Number of Shares because
(i) one or more
Scheduled Trading Days during the
Trading Period was a
Disrupted Day, (ii) a decrease
occurred in the number
of Shares that Party A was
able to purchase on any
Scheduled Trading Day in
compliance with the
limitation set forth in clause
(b)(4) of Rule 10b-18 (as defined below), or (iii) Party
A determines in its good faith reasonable discretion
that it or its affiliates’ ability to purchase the Shares in
connection with the Transaction may raise material
risks under applicable securities laws or regulatory
constraints, the Trading Period shall be extended until
the Exchange Business Day on which Party A has

Risk ID: []/ Effort ID: [] / Global Deal ID: []

2

 

	 	 	 
	 

	 	completed the purchase of the Number of Shares.
	 
	 	 
	     Trading Day:

	 	Any Scheduled Trading Day that is not a Disrupted
Day
	 
	 	 
	     Disrupted Day:

	 	The definition of “Disrupted Day” in Section 6.4 of
the Equity Definitions shall be amended by adding the
following sentence after the first sentence: “A
Scheduled Trading Day on which the Exchange or any
Related Exchange fails to open during its regular
trading session will not be a Disrupted Day if the
Calculation Agent determines that such failure will
not have a material impact on Party A’s ability to
purchase the relevant number of Shares or effect any
necessary hedging activity related to the Transaction.”
Calculation Agent shall notify Party A and Party B of
any determination made pursuant to this provision that
such failure did not have a material impact on Party
A’s ability to purchase the relevant number of Shares
or effect any necessary hedging activity related to the
Transaction prior to 9:00 A.M. (New York time) on
the Scheduled Trading Day immediately following
such determination.
	 
	 	 
	     Consequence of
Disrupted Days:

	 	Section 6.6 of the Equity Definitions shall be deleted
in its entirety and replaced with the following;

	 
	 	 
	 
	 	“If any of the days during the Trading Period are
Disrupted Days, then the Trading Period shall be
extended by a corresponding number of Scheduled
Trading Days”
	 
	 	 
	     Valuation Time:

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

	 	The last Trading Day of the Trading Period.
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	     Settlement Method Election:

	 	Not Applicable
	 
	 	 
	     Physical Settlement:

	 	Applicable
	 
	 	 
	     Settlement Currency:

	 	USD
	 
	 	 
	     Forward Price:

	 	The amount equal to (i) the arithmetic average of the
10b-18 VWAPs for all Trading Days in the Trading
Period minus (ii) USD 0.45.
	 
	 	 
	     10b-18 VWAP:

	 	For any Trading Day that is not a Disrupted Day, the
10b-18 volume-weighted average price at which the
Shares trade as reported in the composite transactions
for the principal United States securities exchange on
which such Shares are then listed (or, if applicable, the
Successor Exchange), as determined by referring to
the Bloomberg Page “CPB.N <Equity> AQR SEC”
(or any successor thereto), absent manifest error. For

Risk ID: []/ Effort ID: [] / Global Deal ID: []

3

 

	 	 	 
	 

	 	any Trading Day that is a Disrupted Day or for any
Trading Day that is not a Disrupted Day but on which
a manifest error occurs with respect to the Bloomberg
Page specified above, an amount determined in good
faith by the Calculation Agent as 10b-18 VWAP.
	 
	 	 
	     Number of Shares to be Delivered:

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

	 	The quotient of the Prepayment Amount divided by
the Forward Price; provided that if such quotient is (i)
greater than the Maximum Shares, the Share Amount
shall equal the Maximum Shares, and (ii) lesser than
the Minimum Shares, the Share Amount shall equal
the Minimum Shares.
	 
	 	 
	     Settlement Date:

	 	Three Exchange Business Days following the
Valuation Date.
	 
	 	 
	     Initial Shares:

	 	The number of Shares equal to the product of (i) 75%
multiplied by (ii) the quotient of (A) the Prepayment
Amount divided by (B) the closing price per Share on
the Exchange, as determined by the Calculation Agent
as of the Valuation Time on the Trade Date.
	 
	 	 
	     Initial Share Delivery:

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

	 	One Exchange Business Day following the Trade Date
	 
	 	 
	     Minimum Shares:

	 	Number of Shares equal to the greater of (i) the Initial
Shares or (ii) the quotient of (i) the Prepayment
Amount divided by (ii) 109.1% of the Hedging Price.
	 
	 	 
	     Minimum Share Delivery:

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

	 	Three Scheduled Trading Days following the Hedge
Period End Date
	 
	 	 
	     Maximum Shares:

	 	Number of Shares equal to the quotient of (i) the
Prepayment Amount divided by (ii) 95.2% of the
Hedging Price.
	 
	 	 
	Share Adjustments:
	 	 
	     Method of Adjustment:

	 	Calculation Agent Adjustment

Risk ID: []/ Effort ID: [] / Global Deal ID: []

4

 

	 	 	 
	Extraordinary Events:
	 	 
	Announcement Date:

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

	 	Modified Calculation Agent Adjustment
	 
	 	 
	          Share-for-Other:

	 	Cancellation and Payment
	 
	 	 
	          Share-for-Combined:

	 	Component Adjustment
	 
	 	 
	Tender Offer:

	 	Applicable
	 
	 	 
	 

	 	The definition of “Tender Offer” in Section 12.1
of the Equity Definitions will be amended by
replacing the phrase “greater than 10% and less
than 100% of the outstanding voting shares of
Party B” in the third and fourth line thereof
with “(a) greater than 10% and less than 100% of
the outstanding Shares of Party B in the event
that such Tender Offer is being made by Party B
or any affiliate thereof or (b) greater than 20%
and less than 100% of the outstanding Shares of
Party B in the event that such Tender Offer is
being made by any entity or person other than
Party B or any affiliate thereof ”.
	 
	 	 
	Consequences of Tender Offers:
	 	 
	          Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	          Share-for-Other:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	          Share-for-Combined:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	          New Shares:

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

          Agent Adjustment:

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

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5

 

	 	 	 
	          Announcement Event:

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

	 	Not Applicable
	 
	 	 
	Nationalization, Insolvency or Delisting:

	 	Cancellation and Payment
	 
	 	 
	Delisting:

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

	 	Applicable
	 
	 	 
	          Insolvency Filing:

	 	Applicable
	 
	 	 
	 

	 	The definition of “Insolvency Filing” in Section 12.9
of the Equity Definitions shall be amended by deleting
the clause “provided that such proceedings instituted
or petitions presented by creditors and not consented
to by Party B shall not be deemed an Insolvency
Filing” at the end of such definition and replacing it
with the following: “; or it has instituted against it a
proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy
or insolvency law or other similar law affecting
creditors’ rights, or a petition is presented for its
winding-up or liquidation by a creditor and such
proceeding is not dismissed, discharged, stayed or
restrained in each case within fifteen (15) days of the
institution or presentation thereof.”
	 
	 	 
	          Increased Cost of Stock Borrow:

	 	Applicable
	 
	 	 
	 

	 	Section 12.9(a)(viii) of the Equity Definitions shall be

Risk ID: []/ Effort ID: [] / Global Deal ID: []

6

 

	 	 	 
	 

	 	deleted in its entirety and replaced with the following:
	 
	 	 
	 

	 	“Increased Cost of Stock Borrow” means that the
Hedging Party would earn a Stock Collateral Rate that
is less than the Initial Stock Loan Rate. For greater
certainty, the Stock Collateral Rate will be deemed to
be less than the Initial Stock Loan Rate if the spread
below the applicable floating rate increases.
	 
	 	 
	 

	 	Section 12.9 (b)(v) of the Equity Definitions is
amended by deleting all references to “a rate equal to
or less than the Initial Stock Loan Rate” and replacing
them with “a Stock Collateral Rate that is equal to or
greater than the Initial Stock Loan Rate”.
	 
	 	 
	 

	 	“Stock Collateral Rate” means the rate of return on
collateral posted in connection with any Shares
borrowed in connection with the Transaction, net of
any costs or fees (including, for greater certainty, any
lender’s borrow fees).
	 
	 	 
	          Initial Stock Loan Rate:

	 	FED-FUNDS minus 25 basis points, as adjusted by the
Calculation Agent to reflect any subsequent Price
Adjustment (as such term is defined in the Equity
Definitions) due to an Increased Cost of Stock
Borrow.
	 
	 	 
	          FED FUNDS:

	 	For any day, the rate set forth for such day opposite
the caption “Federal funds”, as such rate is displayed
on the page “FedsOpen <Index> <GO>” on the
BLOOMBERG Professional Service, or any successor
page; provided that if no rate appears for any day on
such page, the rate for the immediately preceding day
for which a rate does so appear shall be used for such
day.
	 
	 	 
	          Hedging Party:

	 	Party A
	 
	 	 
	          Determining Party:

	 	Party A shall be the Determining Party in connection
with all Extraordinary Events
	 
	 	 
	Acknowledgments:
	 	 
	 
	 	 
	     Non-Reliance:

	 	Applicable
	 
	 	 
	     Agreements and Acknowledgments

	 	Applicable
	     Regarding Hedging Activities:
	 	 
	 
	 	 
	     Additional Acknowledgments:

	 	Applicable
	 
	 	 
	Miscellaneous:
	 	 
	 
	 	 
	     Bankruptcy Code:

	 	Without limiting any other protections under the
Bankruptcy Code (Title 11 of the United States Code)
(the “Bankruptcy Code”), the parties hereto intend
for:
	 
	 	 
	 

	 	(a) The Transaction and the Agreement to be a “swap

Risk ID: []/ Effort ID: [] / Global Deal ID: []

7

 

	 	 	 
	 

	 	agreement” as defined in the Bankruptcy Code, and
the parties hereto to be entitled to the protections
afforded by, among other Sections, Sections 560, 561
and 562 of the Bankruptcy Code.
	 
	 	 
	 

	 	(b) A party’s right to liquidate the Transaction, to
offset or net termination values, payment amounts or
other transfer obligations and to exercise any other
remedies upon the occurrence of any Event of Default
or Termination Event under the Agreement or the
Transaction to constitute a “contractual right” as
described in Sections 560 and 561 of the Bankruptcy
Code.
	 
	 	 
	 

	 	(c) Any cash, securities or other property provided as
performance assurance, credit support or collateral
with respect to the Transaction or the Agreement to
constitute “transfers” under a “swap agreement” as
defined in the Bankruptcy Code.
	 
	 	 
	 

	 	(d) All payments for, under or in connection with the
Transaction or the Agreement, all payments for any
securities or other assets and the transfer of such
securities or other assets to constitute “transfers”
under a “swap agreement” as defined in the
Bankruptcy Code.
	 
	 	 
	Additional Representations, Warranties
and Agreements of Party B:

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

	 	(a) (i) It is not entering into the Transaction on behalf
of or for the account of any other person or entity, and
will not transfer or assign its obligations under the
Transaction or any portion of such obligations to any
other person or entity except in compliance with
applicable laws and the terms of the Transaction; (ii) it
understands that the Transaction is subject to complex
risks which may arise without warning, may at times
be volatile, and that losses may occur quickly and in
unanticipated magnitude; (iii) it is authorized to enter
into the Transaction and such action does not violate
any laws of its jurisdiction of organization or
residence (including, but not limited to, any applicable
position or exercise limits set by any self-regulatory
organization, either acting alone or in concert with
others) or the terms of any agreement to which it is a
party; and (iv) it has concluded that the Transaction is
suitable in light of its own investment objectives,
financial capabilities and expertise.
	 
	 	 
	 

	 	(b) At all times until termination of the Transaction,

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8

 

	 	 	 
	 

	 	Party B is an “eligible contract participant” as the term
is defined in Section 1a(12) of the Commodity
Exchange Act, as amended.
	 
	 	 
	 

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

	 	(d) Party B is not on the date hereof, in possession of
any material non-public information regarding Party
B.
	 
	 	 
	 

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

	 	(e) Each of its required filings under all applicable
securities laws have been filed.
	 
	 	 
	 

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

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

	 	Notwithstanding any other provision hereof, an
“Additional Termination Event” shall occur and
Party B shall be the sole Affected Party with respect to
such Additional Termination Event if on any day
occurring after the Trade Date Party B declares a
distribution, issue or dividend to existing holders of
the Shares with a record date on or prior to the
Valuation Date of (i) an extraordinary cash dividend,
(ii) a regular quarterly cash dividend (A) in an amount
greater than USD 0.20 per Share per quarter (quarterly
dividends in such amounts, “Regular Quarterly
Dividend”) or (B) with a record date five or more
Exchange Business Days prior to or after the expected
record dates for such Regular Quarterly Dividends
(currently expected to occur on October 9, 2006,
January 2, 2007, April 9, 2007 and July 9, 2007), (iii)
securities or share capital of another issuer acquired or

Risk ID: []/ Effort ID: [] / Global Deal ID: []

9

 

	 	 	 
	 

	 	owned (directly or indirectly) by Party B as a result of
a spin-off or other similar transaction or (iv) any other
type of securities (other than Shares, which may
constitute a Potential Adjustment Event), rights or
warrants or other assets, in any case for payment (cash
or other consideration) at less than the prevailing
market price as determined by the Calculation Agent
in a commercially reasonable manner.
	 
	 	 
	          Company Purchases:

	 	Without the prior written consent of Party A, which
shall not be unreasonably delayed or denied, Party B
shall not (except through Party A or an affiliate
thereof), and shall cause its affiliated purchasers (as
defined in Rule 10b-18 of the Exchange Act) not to,
directly or indirectly (including by means of a
derivative instrument) enter into any transaction to
purchase any Shares during the Initial Hedge Period
and thereafter until all payments or deliveries
hereunder have been made.
	 
	 	 
	          Set-Off and Netting:

	 	Each party hereto agrees not to set-off or net amounts
due from the other party hereto with respect to the
Transaction hereunder against amounts due from such
other party to such party under obligations other than
Equity Contracts. Section 2(c) of the Agreement as it
applies to payments due with respect to the
Transaction hereunder shall remain in effect and is not
subject to the first sentence of this provision. In
addition, upon the occurrence of an Event of Default
or Termination Event with respect to a party hereto as
the Defaulting Party or the Affected Party (“X”), the
other party hereto (“Y”) will have the right (but not be
obliged) without prior notice to X or any other person
to set-off or apply any obligation of X under an Equity
Contract owed to Y (or any Affiliate of Y) (whether or
not matured or contingent and whether or not arising
under the Agreement, and regardless of the currency,
place of payment or booking office of the obligation)
against any obligation of Y (or any Affiliate of Y)
under an Equity Contract owed to X (whether or not
matured or contingent and whether or not arising
under the Agreement, and regardless of the currency,
place of payment or booking office of the obligation).
Y will give notice to the other party of any set-off or
application effected under this provision. “Equity
Contract” shall mean for purposes of this provision
any transaction relating to Shares between X and Y (or
any Affiliate of Y) that qualifies as ‘equity’ under
applicable accounting rules. Amounts (or the relevant
portion of such amounts) subject to set-off may be
converted by Y into USD at the rate of exchange at
which such party would be able, acting in a reasonable

Risk ID: []/ Effort ID: [] / Global Deal ID: []

10

 

	 	 	 
	 

	 	manner and in good faith, to purchase the relevant
amount of such currency, and any obligation to deliver
any non-cash property shall be converted into an
obligation to deliver cash in an amount equal to the
value of such property as of the Early Termination
Date, as determined by Y; provided that in the case of
a set-off of any obligation to release or deliver assets
against any right to receive fungible assets, such
obligation and right shall be set off in kind. If any
obligation is unascertained, Y may in good faith
estimate that obligation and set-off in respect of the
estimate, subject to the relevant party accounting to
the other when the obligation is ascertained. Nothing
in this provision shall be effective to create a charge or
other security interest. This provision shall be without
prejudice and in addition to any right of set-off,
combination of accounts, lien or other right to which
any party is at any time otherwise entitled (whether by
operation of law, contract or otherwise).
	 
	 	 
	          No Collateral

	 	Notwithstanding any provision of the Agreement, or
any other agreement between the parties, to the
contrary, the obligations of Party B hereunder are not
secured by any collateral.
	 
	 	 
	          Rule 10b-18:

	 	Party A agrees to make all purchases of Shares during
(i) the Initial Hedge Period and (ii) the Trading Period
(other than purchases made by Party A as part of its
dynamic adjustment of its hedge of the options
embedded in the Transaction) in a manner that would
comply with the limitations set forth in clauses (b)(1),
(b)(2), (b)(4) and (c) of Rule10b-18 under the
Securities Exchange Act of 1934 (“Rule 10b-18”) and
in clause (b)(3) solely with respect to the Transaction
and not any trades executed by Party A that are not
related to the Transaction, as if such rule was
applicable to such purchases.
	 
	 	 
	 

	 	Party B shall, at least one day prior to the first day of
the Initial Hedge Period, notify Party A in writing of
the total number of Shares purchased in Rule 10b-18
purchases of blocks pursuant to the once-a-week block
exception set forth in clause (b)(4) of Rule 10b-18 by
Party B or any of its affiliates during each of the four
calendar weeks preceding such day and during the
calendar week in which such day occurs (“Rule 10b-
18 purchase” and “blocks” each as defined in Rule
10b-18).
	 
	 	 
	          Rule 10b5-1:

	 	It is the intent of the parties that the Transaction
comply with the requirements of Rule 10b5-
1(c)(1)(i)(B) of the Exchange Act (“Rule 10b5-1”),
and the parties agree that this Confirmation shall be

Risk ID: []/ Effort ID: [] / Global Deal ID: []

11

 

	 	 	 
	 

	 	interpreted to comply with the requirements of Rule
10b5-1(c), and Party B shall take no action that results
in the Transaction not so complying with such
requirements. Without limiting the generality of the
preceding sentence, Party B acknowledges and agrees
that (A) Party B does not have, and shall not attempt
to exercise, any influence over how, when or whether
Party A effects any purchases in connection with the
Transaction, (B) during the Initial Hedge Period and
the Trading Period, neither Party B nor its officers or
employees shall, directly or indirectly, communicate
any information regarding Party B or the Shares to
any employee of Party A or its affiliates who is
directly involved in hedging the Transaction and is
listed in Schedule A hereto, as such list may be
amended from time to time by Party A upon notice to
Party B, (C) Party B is entering into the Transaction in
good faith and not as part of a plan or scheme to evade
compliance with federal securities laws including,
without limitation, Rule 10b-5 and (D) Party B will
not alter or deviate from this Confirmation or enter
into or alter a corresponding hedging transaction with
respect to the Shares. Party B also acknowledges and
agrees that any amendment, modification or waiver of
this Confirmation must be effected in accordance with
the requirements for the amendment of a “plan” as
defined in Rule 10b5-1(c). Without limiting the
generality of the foregoing, any such amendment,
modification or waiver shall be made in good faith
and not as part of a plan or scheme to evade the
prohibitions of Rule 10b-5 and no such amendment,
modification or waiver shall be made at any time at
which Party B or any officer or director of Party B is
aware of any material non-public information
regarding Party B or the Shares.
	 
	 	 
	Certain Payments and Deliveries:

	 	Notwithstanding anything to the contrary herein, or
in the Equity Definitions, if at any time (i) an Early
Termination Date occurs and Party B or Party A
would be required to make a payment pursuant to
Sections 6(d) and 6(e) of the Agreement, (ii) a Tender
Offer occurs and Party B or Party A would be
required to make a payment pursuant to Sections
12.3 and 12.7 of the Equity Definitions, (iii) a Merger
Event occurs and Party B or Party A would be
required to make a payment pursuant to Sections 12.2
and 12.7 of the Equity Definitions, (iv) a
Nationalization, Insolvency or Delisting occurs and
Party B or Party A would be required to make a
payment pursuant to Section 12.6 of the Equity
Definitions or (v) an Additional Disruption Event

Risk ID: []/ Effort ID: [] / Global Deal ID: []

12

 

	 	 	 
	 

	 	occurs and Party B or Party A would be required to
make a payment pursuant to Sections 12.8 and 12.9
of the Equity Definitions, then in lieu of such
payment, Party B shall have the right to deliver to
Party A, or Party B shall have the right to require
Party A to deliver to Party B, as the case may be, at
the time such payment would have been due and
in the manner provided under “Physical Settlement”
in the Equity Definitions, a number of Shares (or, in
the case of a Merger Event, common equity
securities of the surviving entity or other
consideration received by holders of Shares pursuant
to such Merger Event) equal to the quotient obtained
by dividing (A) the amount that would have been so
payable by (B) the fair market value per Share (or per
unit of such common equity securities and/or such
other consideration) of the Shares (or such common
equity securities and/or other consideration) so
delivered at the time of such delivery, as
determined by the Calculation Agent in a
commercially reasonable manner. For the avoidance
of doubt, Party B shall have the right to issue
unregistered Shares pursuant to this provision which
shall be taken into account by the Calculation Agent
in calculating the fair value of such unregistered
Shares.
	 
	 	 
	Maximum Number of Shares:

	 	The number of Shares that may be issued at
settlement, or otherwise, by Party B pursuant to the
Transaction will be limited to the total Shares
authorized but not outstanding, reduced by the total
amount of contingently issuable Shares. In any event,
the number of Shares issuable by Party B at settlement
shall not exceed 25,000,000 Shares. If the number of
Shares to be issued at settlement by Party B exceeds
the limit in the preceding sentences, Party B will use
its best efforts to obtain all necessary approvals to
issue additional Shares to enable it to satisfy all
obligations hereunder.
	 
	 	 
	Payments on Early Termination:

	 	Party A and Party B agree that for the Transaction, for
the purposes of Section 6(e) of the Agreement, Loss
and the Second Method will apply.
	 
	 	 
	Transfer:

	 	Notwithstanding Section 7 of the Agreement, Party A
may assign its rights and obligations under the
Transaction, in whole and not in part, to any Affiliate
of Lehman Brothers Holdings Inc. (“Holdings”)
effective upon delivery to Party B of the full
unconditional guarantee by Holdings, in favor of Party
B, of the obligations of such Affiliate.

Risk ID: []/ Effort ID: []/ Global Deal ID: []

13

 

	 	 	 
	Governing Law:

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

	 	USD
	 
	 	 
	Waiver of Trial By Jury:

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

	 	Lehman Brothers Inc.

Risk ID: []/ Effort ID: []/ Global Deal ID: []

14

 

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

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

	 	 	 	 	 	 	 	 	 	 	 
	Yours sincerely,	 	 	 	Accepted and agreed to:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Lehman Brothers Finance S.A.	 	 	 	Campbell Soup Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Markus Bormann	 	 	 	By:	 	/s/ William J. O’Shea	 	 
	Name:

	 	 
Markus Bormann
	 	 
	 	Name:
	 	 
William J. O’Shea
	 	 
	Title:

	 	Director	 	 	 	Title:	 	V.P. — Treasurer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Anatoly Kozlov	 	 	 	 	 	 	 	 
	Name:

	 	 
Anatoly Kozlov
	 	 	 	 	 	 	 	 
	Title:
	 	Authorized Signatory	 	 	 	 	 	 	 	 

Execution time will be furnished upon Counterparty’s written request.

Risk ID: []/ Effort ID: []/ Global Deal ID: []

15

 

SCHEDULE A

	1.	 	Dmitry Noraev
	 
	2.	 	Omar Gzouli
	 
	3.	 	Arturo Ortiz de Zevallos
	 
	4.	 	Matthew Murphy

Risk ID: []/ Effort ID: []/ Global Deal ID: []

16

 

Lehman
Brothers

EXHIBIT A

CONFIRMATION PRICING SUPPLEMENT

	 	 	 	 	 
	Global Deal Id:

	 	2687480
	 	 

This Confirmation Pricing Supplement is the Confirmation Pricing Supplement referred to in the
Confirmation dated as of September 28, 2006 between Lehman Brothers Finance S.A. and Campbell Soup
Company

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

	 	 	 	 	 	 	 
	1.

	 	Hedging Price:
	 	USD36.3220
	 	 
	 
	 	 	 	 	 	 
	2.

	 	Minimum Shares:
	 	7,570,538	 	 
	 
	 	 	 	 	 	 
	3.

	 	First day of Trading Period:
	 	October 23, 2006	 	 

Yours sincerely,

Lehman Brothers Finance S.A.

	 	 	 	 	 
	By:
	 	/s/ Markus Bormann	 	 
	Name:

	 	 
Markus Bormann
	 	 
	Title:
	 	Director	 	 
	 
	 	 	 	 
	By:
	 	/s/ Barbara Grob	 	 
	Name:

	 	 
Barbara Grob
	 	 
	Title:
	 	Authorized Signatory	 	 

Execution time will be furnished upon Counterparty’s written request.

LEHMAN BROTHERS FINANCE S.A.

TALSTRASSE 82 — P.O. BOX 2828 — CH-8021 ZURICH — SWITZERLAND

TELEPHONE (41-1) 287 88 42

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