Document:

Exhibit 10.5.2

 

SECOND ADDENDUM TO LEASE

 

This Second Addendum to Lease (the "Second Addendum")
made as of January 15, 2010, is to that certain
Lease for the real property located at 350 Oakgrove Parkway, Vadnais Heights, Minnesota, made as of December 15, 2003, by and
between Vadnais Heights Investment Company, a Minnesota general partnership, MCHA
Capital, LLC, a Minnesota limited liability company, Robert Tipler and Richard K.
Mathews (collectively "Lessor") and Angeion Corporation, a Minnesota corporation, and Medical
Graphics Corporation, a Minnesota corporation (collectively
"Tenant"), as amended by the First Addendum to Lease made as of December 21, 2008 (as amended, the
"Lease"). All capitalized terms in the Lease shall have the same meaning in this Second
Addendum.

 

WHEREAS, Tenant did not exercise its renewal options as set forth
in the First Addendum and consequently the term of the Lease would expire on June 30, 2010, and Lessor and Tenant desire to enter into this
Second Addendum regarding Tenant's continued occupancy of the Premises.

 

NOW, THEREFORE, in consideration of the foregoing and other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lessor and Tenant agree
that the following sections of the Lease are amended by this Second Addendum as follows:

 

	
1.

	
TERM. The term of the Lease shall be extended for eighteen (18)
months commencing July 1, 2010 and
terminating on December 31, 2011.

	
 

	
 

	
4.

	
RENT. Tenant agrees to pay Lessor rent during the 18 month extension period in the annual
amount of $299,916.00 (or $449,874.00 over the full 18 month period), which shall be payable in 18 monthly
installments of $24,993.00, payable in
advance on the first day of each and every month for and during the full term of the Lease, at the office of
Lessor.

	
 

	
 

	
23.

	
RIGHT OF ENTRY. The number 30 in the third to the last line in this paragraph shall be replaced by the number
90.

 

Except as amended or modified herein, all
other provisions of the Lease remain in full force and effect.

 

IN TESTIMONY WHEREOF, Lessor and Tenant have
executed this Second Addendum to
Lease as of the day and year first above written.

 

 

	
LESSOR:

VRT Properties, LLC

	
 

	
TENANT:

Angeion Corporation

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
/s/ William J. Kullback

	
Its:

	
 

	
 

	
Its:

	
SVP, Chief Financial Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Medical Graphics Corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ William J. Kullback

	
 

	
 

	
 

	
Its:

	
SVP, Chief Financial OfficerExhibit 10.1

	
  

 	
  

 
	
  

 	
 Barclays
 Bank PLC

 
	
  

 	
 5 The North
 Colonnade

 
	
  

 	
 Canary
 Wharf, London E14

 4BB

 
	
  

 	
 Facsimile: +44(20)77736461

 
	
  

 	
 Telephone:
 +44 (20) 777 36810

 
	
  

 	
  

 
	
  

 	
 c/o Barclays
 Capital Inc.

 
	
  

 	
 as Agent for
 Barclays Bank PLC

 
	
  

 	
 745 Seventh
 Ave

 
	
  

 	
 New York, NY
 10019

 

 

	
  

 	
  

 
	
 DATE:

 	
 January 28,
 2010

 
	
  

 	
  

 
	
 TO:

 	
 Quest Diagnostics
 Incorporated

 
	
  

 	
  

 
	
 Attention:

 	
 Robert F
 O’Keef, Vice President and Treasurer

 
	
  

 	
  

 
	
 FROM: 

 	
 Barclays
 Capital Inc., acting as Agent for Barclays Bank PLC

 
	
 TELEPHONE:

 	
 +1 212 412
 4000

 
	
  

 	
  

 
	
 SUBJECT:

 	
                               Share
 Repurchase Transaction

 

                    The
purpose of this letter agreement (this “Confirmation”)
is to confirm the terms and conditions of the Transaction entered into between
Barclays Bank PLC (“Barclays”),
through its agent Barclays Capital Inc. (the “Agent”),
and Quest Diagnostics Incorporated (“Counterparty”)
on the Trade Date specified below (the “Transaction”).
This Confirmation constitutes a “Confirmation”
as referred to in the Master Agreement specified below. Barclays Bank PLC is not a member of the
Securities Investor Protection Corporation (“SIPC”). Barclays is regulated by
the Financial Services Authority.

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., are
incorporated into this Confirmation. In the event of any inconsistency between
the Equity Definitions and this Confirmation, this Confirmation shall govern. For purposes of the Equity
Definitions, this Transaction shall be deemed to be a Share Forward
Transaction.

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

1. This
Confirmation evidences a complete and binding agreement between Barclays and
Counterparty as to the terms of the Transaction to which this Confirmation
relates. This Confirmation shall supplement, form a part of, and be subject to,
an agreement in the form of the ISDA 1992 Master Agreement (Multicurrency –
Cross Border) (the “Agreement”) as
if Barclays and Counterparty had executed an agreement in such form (without
any Schedule except for (i) the election of U.S. Dollars as the Termination
Currency; (ii) the election that the “Cross Default” provisions of Section
5(a)(vi) shall apply to Counterparty and Barclays with a “Threshold Amount” of
USD 150 million with respect to Counterparty and three percent of shareholders’
equity with respect to Barclays, and with an amendment of Section 5(a)(vi) to
(A) delete the phrase “, or becoming capable at such time of being declared,”
in the seventh line thereof and (B) add the following text at the end Section
5(a)(vi)(2): “provided, however, that an Event of Default shall not occur under
either (1) or (2) above if the default, Event of Default or other similar event

1

or condition
referred to in (1) or the failure to pay referred to in (2) is a failure to pay
caused by an error or omission of an administrative or operational nature and
funds were available to such party to enable it to make the relevant payment
when due and such payment is in fact made on or before the third Local Business
Day following receipt of written notice from the other party of such failure to
pay;” and (iii) such other elections set forth in this Confirmation) on the
Trade Date. In the event of any inconsistency between provisions of the
Agreement and this Confirmation, this Confirmation will prevail for the purpose
of the Transaction. The parties hereby agree that no Transaction other than the
Transaction to which this Confirmation relates shall be governed by the
Agreement.

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

	
  

 	
  

 
	
 General Terms:

 	
  

 
	
  

 	
  

 
	
 Trade Date:

 	
 January 28,
 2010

 
	
  

 	
  

 
	
 Seller:

 	
 Barclays

 
	
  

 	
  

 
	
 Buyer:

 	
 Counterparty

 
	
  

 	
  

 
	
 Shares:

 	
 The common
 stock, 0.01 par value per share of Counterparty (Ticker symbol “DGX”).

 
	
  

 	
  

 
	
 Prepayment:

 	
 Applicable

 
	
  

 	
  

 
	
 Variable Obligation

 	
 Applicable

 
	
  

 	
  

 
	
 Prepayment Amount:

 	
 As specified in Schedule A

 
	
  

 	
  

 
	
 Prepayment Date:

 	
 One Exchange Business Day
 following the Trade Date.

 
	
  

 	
  

 
	
 Exchange:

 	
 The New York
 Stock Exchange

 
	
  

 	
  

 
	
 Related Exchange(s):

 	
 NASDAQ Global Select Market, NASDAQ Global Market, International
 Securities Exchange and Chicago Board of Exchange. 

 
	
  

 	
  

 
	
 Calculation Agent:

 	
 Barclays.

 

2

	
  

 	
  

 	
  

 
	
 Valuation:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Trading
 Period:

 	
  

 	
 The period
 of consecutive Scheduled Trading Days from and including the first Scheduled
 Trading Day following the Trade Date to and including the Maximum Maturity
 Date, as specified in Schedule A; provided that, Barclays may designate
 any Scheduled Trading Day on or after the Minimum Maturity Date, as specified
 in Schedule A, as the last Scheduled Trading Day of the Trading Period.
 Barclays shall notify Counterparty of any designation made pursuant to this
 provision on the Scheduled Trading Day immediately following such designated
 day.

 
	
  

 	
  

 	
  

 
	
 Market Disruption Event:

 	
  

 	
 Section
 6.3(a) of the Equity Definitions shall be amended by deleting the words “at
 any time 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” and replacing them with the words “at any time during the
 regular trading session on the Exchange, without regard to after hours or any
 other trading outside of the regular trading session hours”, by amending and
 restating clause (a)(iii) thereof in its entirety to read as follows: “(iii)
 an Early Closure that the Calculation Agent determines is material” and by adding the words “ or (iv)
 a Regulatory Disruption” after clause (a)(iii) as restated above.

 

 Section 6.3(d) of the Equity Definitions is hereby amended by deleting the
 remainder of the provision following the term “Scheduled Closing Time” in the
 fourth line thereof.

 
	
  

 	
  

 	
  

 
	
 Regulatory
 Disruption:

 	
  

 	
 A “Regulatory
 Disruption” shall occur if Barclays determines in its reasonable discretion
 that it is appropriate in light of legal, regulatory or self-regulatory
 requirements or related policies or procedures for Barclays to refrain from
 all or any part of the market activity in which it would otherwise engage in
 connection with this Transaction.

 
	
  

 	
  

 	
  

 
	
 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 a 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 Barclays’s
 ability to unwind any hedging transactions related to the Transaction”.

 

3

	
  

 	
  

 	
  

 
	
 Consequence
 of Disrupted Days:

 	
  

 	
 Notwithstanding
 anything to the contrary in the Equity Definitions, to the extent that a
 Disrupted Day occurs during the Trading Period, the Calculation Agent may postpone
 the Maximum Maturity Date and the Minimum Maturity Date. If any Disrupted Day
 occurs during the Trading Period, the Calculation Agent shall determine
 whether (i) such Disrupted Day is a Disrupted Day in whole, in which case the
 10b-18 VWAP for such Disrupted Day shall not be included for purposes of
 determining the Forward Price, or (ii) such Disrupted Day is a Disrupted Day
 only in part, in which case the 10b-18 VWAP for such Disrupted Day shall be
 determined by the Calculation Agent based on Rule 10b-18 eligible
 transactions in the Shares on such Disrupted Day effected before the relevant
 Market Disruption Event (if any) occurred and/or after the relevant Market
 Disruption Event (if any) ended, and the Forward Price shall be determined by
 the Calculation Agent as appropriate on the basis of the nature and duration
 of the relevant Market Disruption Event. Any day on which the Exchange is
 scheduled to close prior to its normal closing time shall be considered a
 Disrupted Day in whole.

 
	
  

 	
  

 	
  

 
	
 Valuation Time:

 	
  

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

 
	
  

 	
  

 	
  

 
	
 Valuation Date:

 	
  

 	
 The Settlement Date.

 
	
  

 	
  

 	
  

 
	
 Settlement Terms:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Settlement
 Method Election:

 	
  

 	
 Not
 Applicable; provided that if the Number of Shares to be Delivered is a
 negative number, Counterparty may elect Physical Settlement in lieu of Cash
 Settlement by written notice to Barclays at any time no later than 9:00 a.m.
 (New York City time) on the Scheduled Trading Day immediately following the
 earlier of (i) the Scheduled Trading Day on which Counterparty receives from
 Barclays a notice of designation of the last Scheduled Trading Day of the
 Trading Period and (ii) the originally scheduled Maximum Maturity Date as
 specified in Schedule A. 

 
	
  

 	
  

 	
  

 
	
 Physical
 Settlement:

 	
  

 	
 Applicable
 if the Number of Shares to be Delivered is (1) a positive number, in which
 case it means that on the Settlement Date Barclays shall deliver to Counterparty
 the Number of Shares to be Delivered, or (2) a negative number and
 Counterparty makes the election pursuant to the proviso under “Settlement
 Method Election” above, in which case it means that Counterparty shall
 deliver to Barclays the absolute value of such number subject to paragraphs
 5(g) and (i) below.

 
	
  

 	
  

 	
  

 
	
 Cash
 Settlement:

 	
  

 	
 Applicable
 if the Number of Shares to be Delivered is a negative number and Counterparty
 does not make the election above pursuant to the proviso under “Settlement
 Method Election” above, in which case it means that paragraph 5(h) below
 shall apply. 

 
	
  

 	
  

 	
  

 
	
 Settlement Currency:

 	
  

 	
 USD

 

4

	
  

 	
  

 	
  

 
	
 Forward Price:

 	
  

 	
 The amount equal to (i)
the arithmetic average of the 10b-18 VWAPs for all Exchange Business Days in
the Trading Period (the “Average 10b-18 VWAP”) minus (ii) the Discount,
as specified in Schedule A and adjusted pursuant to provisions under
“Modified Calculation Agent Adjustment” below. 

 
	
  

 	
  

 	
  

 
	
 10b-18 VWAP:

 	
  

 	
 (A) For any Scheduled
 Trading Day that is not a Disrupted Day, the volume-weighted average price at
 which the Shares trade as reported in the composite transactions for all
 United States securities exchanges on which such Shares are traded (or, if
 applicable, the successor Exchange), excluding (i) trades that do not settle
 regular way, (ii) opening (regular way) reported trades in the consolidated
 system on such Scheduled Trading Day, (iii) trades that occur in the last ten
 minutes before the scheduled close of trading on the Exchange on such
 Scheduled Trading Day and ten minutes before the scheduled close of the
 primary trading in the market where the trade is effected, and (iv) trades on
 such Scheduled Trading Day that do not satisfy the requirements of Rule
 10b-18(b)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as determined in good
 faith by the Calculation Agent, or (B) for any Scheduled Trading Day that is
 a Disrupted Day, an amount determined in good faith and in a commercially
 reasonable manner by the Calculation Agent as 10b-18 VWAP pursuant to
 “Consequence of Disrupted Days” above. Counterparty acknowledges that the
 Calculation Agent may refer to the Bloomberg Page “DGX <Equity> AQR
 SEC” (or any successor thereto) for any Scheduled Trading Day to determine
 the 10b-18 VWAP.

 
	
  

 	
  

 	
  

 
	
 Number of Shares to be
 Delivered:

 	
  

 	
 A number of Shares equal
 to the difference between (i) the Share Amount minus (ii) the Initial
 Shares; provided
 that a number of Shares less than a whole number shall be rounded upward.

 
	
  

 	
  

 	
  

 
	
 Share Amount:

 	
  

 	
 The quotient of the
 Prepayment Amount divided by the Forward Price.

 
	
  

 	
  

 	
  

 
	
 Settlement Date:

 	
  

 	
 One Exchange Business Day
 following the last Scheduled Trading Day during the Trading Period; provided
 that if Counterparty elects to deliver Free Shares pursuant to paragraph 5(g)
 below, then the Settlement Date shall be extended for so long as is
 reasonably necessary to allow Counterparty to satisfy, as promptly as
 practicable, the conditions set forth in paragraph 5(i) below.

 
	
  

 	
  

 	
  

 
	
 Initial Shares:

 	
  

 	
 As
 specified in Schedule A.

 
	
  

 	
  

 	
  

 
	
 Initial Share Delivery:

 	
  

 	
 Barclays
 shall deliver a number of Shares equal to the Initial Shares to Counterparty
 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. 

 
	
  

 	
  

 	
  

 
	
 Adjustments:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Method of Adjustment:

 	
  

 	
 Calculation Agent Adjustment; provided
 that, notwithstanding anything to the contrary in Section 11.2(e) of the
 Equity 

 

5

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Definitions or this Confirmation, neither an Extraordinary Dividend
 nor a repurchase of Shares by the Issuer or any of its subsidiaries shall
 constitute a “Potential Adjustment Event.”

 
	
  

 	
  

 	
  

 
	
 Extraordinary Events:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 New Shares:

 	
  

 	
 Section 12.1(i) of the Equity Definitions is hereby amended by
 deleting the text in clause (i) in its entirety and replacing it with the
 phrase “publicly quoted, traded or listed 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)”.

 
	
  

 	
  

 	
  

 
	
 Share-for-Share:

 	
  

 	
 The
 definition of “Share-for-Share” set forth in Section 12.1(f) of the Equity
 Definitions is hereby amended by the deletion of the parenthetical in clause
 (i) thereof.

 
	
  

 	
  

 	
  

 
	
 Consequence of Merger Events:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Share-for-Share:

 	
  

 	
 Modified Calculation Agent Adjustment.

 
	
  

 	
  

 	
  

 
	
 Share-for-Other:

 	
  

 	
 Cancellation and Payment (Calculation Agent Determination).

 
	
  

 	
  

 	
  

 
	
 Share-for-Combined:

 	
  

 	
 Component Adjustment. 

 
	
  

 	
  

 	
  

 
	
 Consequence of Tender Offers:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Tender Offer:

 	
  

 	
 Applicable

 
	
  

 	
  

 	
  

 
	
 Share-for-Share:

 	
  

 	
 Modified Calculation Agent Adjustment.

 
	
  

 	
  

 	
  

 
	
 Share-for-Other:

 	
  

 	
 Modified Calculation Agent Adjustment.

 
	
  

 	
  

 	
  

 
	
 Share-for-Combined:

 	
  

 	
 Modified Calculation Agent Adjustment.

 
	
  

 	
  

 	
  

 
	
 Modified
 Calculation Agent Adjustment:

 	
  

 	
 The
 definition of “Modified Calculation Agent Adjustment” in Sections 12.2 and
 12.3 of the Equity Definitions is hereby amended by deleting 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 this Transaction)” and replacing it with the following:
 “(provided that no adjustments shall be made to account for changes in
 volatility, expected dividends, stock loan rate or liquidity relevant to the
 Shares or to this Transaction, except that the Calculation Agent may adjust
 the Discount (but in no event to an amount less than zero) solely to account
 for the economic effect on Barclays’ right to designate the last Scheduled
 Trading Day of the Trading Period of changes in the volatility of the Shares
 during the period from the Announcement Date to the Merger Date or Tender
 Offer Date, as the case may be)”.

 
	
  

 	
  

 	
  

 
	
 Announcement
 Date:

 	
  

 	
 The
 definition of “Announcement Date” in Section 12.1 of the Equity Definitions
 shall be amended by (i) replacing the word “leads to the” in the third and
 the fifth lines thereof with the words “, if completed, would lead to a”,
 (ii) replacing the words “voting shares” in the fifth line thereof with the
 word “Shares” and (iii) inserting the words “by any entity” after the word
 “announcement” in the third and the fifth lines thereof.

 
	
  

 	
  

 	
  

 
	
 Announcement
 Event:

 	
  

 	
 If an
 Announcement Event occurs, the Calculation Agent will determine the economic
 effect on the theoretical value of this Transaction of changes in the
 volatility of the Shares during 

 

6

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the
period from the Announcement Date to the Valuation Date. If such economic
effect is material, the Calculation Agent will on the Valuation Date adjust
the Discount (but in no event to an amount less than zero) solely to account
for 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; provided that, notwithstanding Sections 12.5(b) and
 12.1(f) of the Equity Definitions, to the extent that the composition of the
 consideration for the relevant Shares pursuant to a Tender Offer or Merger
 Event could be elected by an actual holder of the Shares, the Calculation
 Agent will determine such composition.

 
	
  

 	
  

 	
  

 
	
 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:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Change in
 Law:

 	
  

 	
 Applicable. 

 
	
  

 	
  

 	
  

 
	
 Failure to
 Deliver:

 	
  

 	
 Not Applicable.

 
	
  

 	
  

 	
  

 
	
 Insolvency
 Filing:

 	
  

 	
 Applicable; provided that the
 definition of “Insolvency Filing” in Section 12.9 of the Equity Definitions
 shall be amended by deleting the clause “provided that proceedings instituted
 or petitions presented by creditors and not consented to by the Issuer 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 thirty (30) days of the institution
 or presentation thereof, in which event the Insolvency Filing shall be deemed
 to occur on such thirtieth day.”

 

 Section 12.9(b)(i) of
 the Equity Definitions is hereby amended by adding the following sentence at
 the end: “If neither party elects to terminate the Transaction, the
 Calculation Agent may adjust the terms of the Transaction upon the occurrence
 of such an event pursuant to Modified Calculation Agent Adjustment (as if
 such event were a Tender Offer and the date of occurrence of the Insolvency
 Filing were the Announcement Date).”

 

7

	
  

 	
  

 	
  

 
	
 Hedging
 Disruption:

 	
  

 	
 Applicable; provided that, Section 12.9(a)(v) of the
 Equity Definitions is hereby amended by adding the phrase “for five or more
 successive Scheduled Trading Days” immediately following the word “efforts”
 in the second line thereof.

 
	
  

 	
  

 	
  

 
	
 Loss of
 Stock Borrow:

 	
  

 	
 Applicable; provided that (a) Sections 12.9(a)(vii)
 and 12.9(b)(iv) of the Equity Definitions are amended by deleting the words
 “at a rate equal to or less than the Maximum Stock Loan Rate” and replacing
 it with the words “at a Borrow Cost equal to or less than the Maximum Stock
 Loan Rate” and (b) Section 12.9(a)(vii) of the Equity Definitions is hereby
 amended by inserting the words “or enter into an economically equivalent
 transaction” after the first occurrence of the word “Shares”.

 
	
  

 	
  

 	
  

 
	
 Borrow Cost:
 

 	
  

 	
 The cost to borrow the relevant Shares (or enter into an economically
 equivalent transaction) that would be incurred by a third party market
 participant borrowing such Shares or entering into such transaction, as
 determined by the Calculation Agent on the relevant date of determination.
 Such costs, in the case of a borrowing of Shares, shall include (a) the
 spread below FED-FUNDS that would be earned on collateral posted in
 connection with such borrowed Shares, net of any costs or fees, and (b) any
 stock loan borrow fee that would be payable for such Shares, expressed as
 fixed rate per annum. 

 
	
  

 	
  

 	
  

 
	
 Maximum
 Stock Loan Rate:

 	
  

 	
 200 basis
 points.

 
	
  

 	
  

 	
  

 
	
 Increased
 Cost of Stock Borrow:

 	
  

 	
 Applicable; provided that (a) Section 12.9(a)(viii)
 of the Equity Definitions shall be amended by deleting “rate to borrow
 Shares” and replacing it with “Borrow Cost” and (b) Section 12.9(b)(v) of the
 Equity Definitions shall be amended by (i) adding the word “or” immediately
 before the phrase “(B)”, (ii) deleting subsection (C) in its entirety, (iii)
 replacing “either party” in the penultimate sentence with “the Hedging
 Party”, and (iv) replacing the word “rate” in clauses (X) and (Y) of the
 final sentence therein with the words “Borrow Cost”. 

 
	
  

 	
  

 	
  

 
	
 Initial Stock
 Loan Rate:

 	
  

 	
 25 basis
 points. 

 
	
  

 	
  

 	
  

 
	
 FED FUNDS:

 	
  

 	
 “FED FUNDS” means, 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:

 	
  

 	
 Barclays or an affiliate of Barclays that is involved in the hedging
 of this Transaction for all applicable Additional Disruption Events.

 
	
  

 	
  

 	
  

 
	
 Determining Party:

 	
  

 	
 Barclays for all applicable Extraordinary Events.

 
	
  

 	
  

 	
  

 
	
 Acknowledgments:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Non-Reliance:

 	
  

 	
 Applicable.

 
	
  

 	
  

 	
  

 
	
 Agreements and Acknowledgments 

 	
  

 	
  

 

8

	
  

 	
  

 
	
 Regarding
 Hedging Activities:

 	
 Applicable.

 
	
  

 	
  

 
	
 Additional
 Acknowledgments:

 	
 Applicable.

 

	
  

 	
  

 	
  

 
	
 3.

 	
 Mutual Representations, Warranties and Agreements. 

 
	
  

 	
  

 
	
 Each of
 Barclays and Counterparty represents and warrants to, and agrees with, the
 other party that: 

 
	
  

 
	
  

 	
 (a)

 	
 Commodity Exchange Act. It is an “eligible
 contract participant” within the meaning of Section 1a(12) of the U.S.
 Commodity Exchange Act, as amended (the “CEA”).
 The Transaction has been subject to individual negotiation by the parties.
 The Transaction has not been executed or traded on a “trading facility” as
 defined in Section 1a(33) of the CEA; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Securities Act. It is a “qualified
 institutional buyer” as defined in Rule 144A under the Securities Act, or an
 “accredited investor” as defined in Section 2(a)(15)(ii) of the Securities
 Act. 

 
	
  

 	
  

 	
  

 
	
 4.

 	
 Representations, Warranties and Agreements of Counterparty. 

 
	
  

 	
  

 
	
 In addition
 to the representations and warranties in the Agreement and those contained
 elsewhere herein, Counterparty further represents, warrants and agrees that: 

 
	
  

 
	
  

 	
 (a)

 	
 if
 Counterparty purchases any Shares pursuant to this Transaction, such
 purchase(s) will comply with (i) all laws and regulations applicable to it
 and (ii) all contractual obligations of Counterparty; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Counterparty
 shall as promptly as practicable provide written notice to Barclays upon
 obtaining knowledge of the occurrence of any event that constitutes an Event
 of Default, a Potential Event of Default, a Potential Adjustment Event, a
 Merger Event or any other Extraordinary Event; provided, however, that should Counterparty be in
 possession of material non-public information regarding Counterparty,
 Counterparty shall not communicate such information to Barclays; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 (A)
 Counterparty is acting for its own account, and it has made its own
 independent decisions to enter into the Transaction and as to whether the
 Transaction is appropriate or proper for it based upon its own judgment and
 upon advice from such advisers as it has deemed necessary, (B) Counterparty
 is not relying on any communication (written or oral) of Barclays or any of
 its affiliates as investment advice or as a recommendation to enter into the
 Transaction (it being understood that information and explanations related to
 the terms and conditions of the Transaction shall not be considered
 investment advice or a recommendation to enter into the Transaction) and (C)
 no communication (written or oral) received from Barclays or any of its
 affiliates shall be deemed to be an assurance or guarantee as to the expected
 results of the Transaction; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Counterparty
 has not and will not directly or indirectly violate any applicable law
 (including, without limitation, the Securities Act and the Securities
 Exchange Act of 1934, as amended (the “Exchange
 Act”)) in connection with the Transaction; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 Counterparty
 has (and at all times during the Transaction shall have) the capacity and
 authority to purchase Shares in an amount equal to the Share Amount
 (determined as if the Forward Price were $28 per Share and assuming that the
     aggregate purchase price does not exceed the Prepayment Amount) and has
     not entered into the Transaction with the intent to avoid any regulatory
     filings; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

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

 

9

	
  

 	
  

 	
  

 
	
  

 	
 (g)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 Counterparty
 is not as of the Trade Date (taking into account the effect of entering into
 the Transaction) “insolvent” (as such term is defined in Section 101(32)
 of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy
 Code”))
 and Counterparty would, as of such date, be able to purchase a number of Shares
 equal to the Share Amount (determined as if the Forward Price were $28 per Share
 and assuming that the aggregate purchase price does not exceed the Prepayment
 Amount) in compliance with the laws of the jurisdiction of Counterparty’s
 incorporation or organization; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the
 Transaction, and any repurchase of the Shares by Counterparty in connection
 with the Transaction, is pursuant to a publicly announced Share repurchase
 program that has been approved by Counterparty’s board of directors
 (including engaging in related derivative transactions) and any such
 repurchase has been, or shall when so required be, publicly disclosed in its
 periodic filings under the Exchange Act and its financial statements and
 notes thereto; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 Counterparty
 understands, agrees and acknowledges that Barclays has no obligation or
 intention to register the Transaction under the Securities Act, any state
 securities law or other applicable federal securities law; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 each of
 Counterparty’s filings and reports under the Securities Act, the Exchange
 Act, or other applicable securities laws that are required to be filed or
 furnished have been filed or furnished and, as of the Trade Date, such
 filings or reports when considered as a whole (with the more recent such
 filings or reports deemed to supersede inconsistent statements contained in
 any earlier such filings or reports) do not contain any misstatement of a
 material fact or any omission of a material fact required to be stated
 therein or necessary to make the statements made therein, in the light of the
 circumstances under which they were made, not misleading; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (l)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (m)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (n)

 	
 without
 limiting the generality of Section 13.1 of the Equity Definitions,
 Counterparty acknowledges that Barclays is not making any representations or
 warranties with respect to the treatment of the Transaction under FASB
 Statements 128, 133, as amended, 149 or 150, EITF Issue No. 00-19, 01-6, 03-6
 or 07-5 (or any successor issue statements), under FASB’s Liabilities &
 Equity Project or under FASB Staff Position or any other accounting guidance;
 and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (o)

 	
 Counterparty
 is not entering into the Transaction for the purpose of (i) creating actual
 or apparent trading activity in the Shares (or any security convertible into
 or exchangeable for the Shares) or (ii) raising or depressing or otherwise
 manipulating the price of the Shares (or any security convertible into or
 exchangeable for the Shares) or otherwise in violation of the Exchange Act. 

 

10

	
  

 	
  

 	
  

 	
  

 
	
 5.

 	
 Other Provisions: 

 
	
  

 	
  

 
	
  

 	
 (a)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Rule 10b-18. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 Barclays
 covenants and agrees that (A) it shall effect all purchases of Shares in
 connection with this Transaction during the period starting on the first day
 of the Trading Period and ending on the Minimum Maturity Date (other than
 purchases made by Barclays as part of its dynamic adjustment of its hedge of
 the options embedded in this Transaction or that Barclays reasonably believes
 are attributable solely to Barclays during such period) and the Cash
 Settlement Pricing Period (as defined below), if any, and any purchases
 executed as a result of the occurrence of an Additional Termination Event or
 termination of the Transaction pursuant to Sections 12.2, 12.3, 12.6, 12.7 or
 12.9 of the Equity Definitions) in a manner that Barclays reasonably
 believes, based on the representations, warranties and agreements of
 Counterparty set forth herein, would comply with the limitations set forth in
 clauses (b)(1), (b)(2), (b)(3), (b)(4) and (c) of Rule 10b-18 under the
 Securities Exchange Act of 1934 (“Rule
 10b-18”), as if Barclays were Counterparty or an “affiliated
 purchaser” (as such term is defined in Rule 10b-18) of Counterparty and
 such rule were applicable to such purchases and (B) without limitation of the
 foregoing clause (A), it shall effect all purchases of Shares in connection
 with this Transaction in a manner that Barclays, in good faith, believes is
 in compliance with applicable legal and regulatory requirements. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 Except as
 disclosed to Barclays in writing prior to the Trade Date, Counterparty
 represents and warrants to Barclays that it has not made any purchases of
 blocks by or for itself or any of its “affiliated purchasers” pursuant to the
 one block purchase per week exception in Rule 10b-18(b)(4) under the Exchange
 Act during each of the four calendar weeks preceding such date (“Rule 10b-18 purchase,” “blocks” and “affiliated purchaser”, each as defined in Rule 10b-18). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 Counterparty
 agrees that if, on any day during the Trading Period or the Cash Settlement
 Pricing Period, if any, Counterparty makes any public announcement (as
 defined in Rule 165(f) under the Securities Act) of any Merger Transaction,
 Counterparty shall promptly (but in any event prior to the next opening of
 the regular trading session on the Exchange in the case of such an
 announcement not made during such a regular trading session) notify Barclays
 following any such announcement that such announcement has been made; and (C)
 shall promptly (but in any event prior to the next opening of the regular
 trading session on the Exchange) provide Barclays with written notice
 specifying (i) Counterparty’s average daily Rule 10b-18 Purchases (as defined
 in Rule 10b-18) during the three full calendar months immediately preceding
 the announcement date that were not effected through Barclays or its
 affiliates and (ii) the number of Shares purchased pursuant to the proviso in
 Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months
 preceding the announcement date. Such written notice shall be deemed to be a
 certification by Counterparty to Barclays that such information is true and
 correct. In addition, Counterparty shall promptly notify Barclays of the
 earlier to occur of the completion of such transaction and the completion of
 the vote by target shareholders. “Merger
 Transaction” means any merger, acquisition or similar transaction
 involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under
 the Exchange Act. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Rule 10b5-1. It is the intent of the parties
 that this 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 

 

11

	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Confirmation
 shall be interpreted to comply with the requirements of Rule 10b5-1(c), and
 Counterparty shall take no action that results in this Transaction not so
 complying with such requirements. Without limiting the generality of the
 preceding sentence, Counterparty acknowledges and agrees that (A)
 Counterparty does not have, and shall not attempt to exercise, any influence
 over how, when or whether Barclays effects any purchases in connection with
 this Transaction, (B) during the Trading Period and the Cash Settlement Pricing Period,
 if any, Counterparty shall not, and shall not authorize any of its officers
 or employees to, communicate, directly or indirectly, any information
 regarding Counterparty or the Shares to employees of Barclays or its affiliates
 as named in the Appendix A, (C) Counterparty is entering into this
 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) Counterparty will not alter or deviate from this Confirmation
 or enter into or alter a corresponding hedging transaction with respect to
 the Shares. Counterparty 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 or waiver
 shall be made at any time at which Counterparty is aware of any material
 non-public information regarding Counterparty or the Shares.

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Company Purchases. Without the prior written
 consent of Barclays (which consent Barclays shall not unreasonably withhold
 or delay), Counterparty shall not purchase, and shall cause its “affiliates”
 and “affiliated purchasers” (each as defined in Rule 10b-18) not to 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
 during the Trading Period and the Cash Settlement Pricing Period,
 if any; provided that this
 paragraph 5(d) shall not apply to any of the following: (A) privately
 negotiated purchases of Shares from GlaxoSmithKline plc or any of its
 affiliates holding such Shares with the prior consent of Barclays (which
 consent Barclays shall not unreasonably withhold or delay); (B) purchases of
 Shares pursuant to exercises of stock options granted to former or current
 employees, officers, directors, or other affiliates of Counterparty,
 including the withholding and/or purchase of Shares from holders of such
 options to satisfy payment of the option exercise price and/or satisfy tax
 withholding requirements in connection with the exercise of such options; (C)
 purchases of Shares from holders of performance shares or units or restricted
 shares or units to satisfy tax withholding requirements in connection with
 vesting; (D) the conversion or exchange by holders of any convertible or
 exchangeable securities of the Counterparty previously issued; (E) purchases
 of Shares effected by or for a plan by an agent independent of Counterparty
 that satisfy the requirements of Rule 10b-18(a)(13)(ii); (F) purchases which
 are not solicited by or on behalf of Counterparty, its “affiliates” or
 “affiliated purchasers” (each as defined in Rule 10b-18); or (G) purchases
 executed by Barclays or an Affiliate of Barclays. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 Regulation M. Counterparty is not on the
 Trade Date engaged in a “distribution”, as such term is used in Regulation M
 under the Exchange Act (“Regulation M”),
 of any Shares or any securities for which the Shares are a “reference
 security” (as defined in Regulation M), other than a distribution meeting the
 requirements of an exception set forth in Rules 102(b) or 102(c) of
 Regulation M. Counterparty shall not, until the Settlement Date or Cash
 Payment Settlement Date, as applicable, engage in any such distribution. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 Additional Termination Event. Notwithstanding
 any other provision hereof, an “Additional Termination Event” shall occur and
 Counterparty shall be the sole Affected Party pursuant to such Additional
 Termination Event if on any day occurring after the Trade Date and on or
 prior to the last Scheduled Trading Day in the Trading Period Counterparty
 declares a distribution, issue or 

 

12

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 dividend to
 existing holders of the Shares with an ex-dividend date on or prior to the
 Valuation Date of (i) an extraordinary cash dividend, (ii) a regular
 quarterly dividend in an amount greater than the Regular Dividend as
 specified in Schedule A, (iii) securities or share capital of another issuer
 acquired or owned (directly or indirectly) by Counterparty 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
 Barclays.

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 Physical Settlement by Counterparty. If
 Physical Settlement applies pursuant to (2) under “Physical Settlement”
 above, Counterparty shall
 deliver, at its election, either (i) a number of Free Shares equal to the
 absolute value of the Number of Shares to be Delivered, OR (ii) a number of
 Restricted Shares equal to the product of (A) the absolute value of the
 Number of Shares to be Delivered multiplied by (B) 106%. “Free Shares” shall
 mean Shares that are fully registered, freely tradable and free and clear of
 any lien, charge, claim or other encumbrance and delivered pursuant to
 paragraph 5(i) below. “Restricted Shares” shall mean Shares that are not Free
 Shares. “Physical Settlement Price”
 shall mean the closing price per Share as quoted by the Exchange at the
 Valuation Time on the last Scheduled Trading Day of the Trading Period.
 Notwithstanding Section 9.11 of the Equity Definitions, the parties
 acknowledge that the Restricted Shares have not been registered pursuant to
 an effective registration statement under the Securities Act of 1933, as
 amended (the “Securities Act”)
 or any state securities laws (“Blue Sky
 Laws”) and cannot be freely sold, transferred, pledged or
 otherwise disposed of without registration under the Securities Act or under
 applicable Blue Sky Laws unless such sale, transfer, pledge or other
 disposition is made in a transaction exempt from or not subject to
 registration thereunder. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 Cash Settlement by Counterparty. If Cash
 Settlement applies, Counterparty shall pay to Barclays on each Cash
 Settlement Date an amount in cash equal to the Cash Settlement Amount for
 such Cash Settlement Date. “Cash Settlement
 Dates” shall mean three Currency Business Days immediately
 following each Exchange Business Day on which Barclays delivers to
 Counterparty a Hedge Repurchase Notice. “Cash
 Settlement Amount” shall mean, with respect to each Cash
 Settlement Date, the product of (i) the number of Hedge Repurchase Shares, as
 specified in the applicable Hedge Repurchase Notice, multiplied by (ii) the volume weighted
 average price at which Barclays purchased such Shares on the Scheduled
 Trading Day related to such Cash Settlement Date. “Cash Settlement Pricing Period” shall mean the period
 commencing on the Scheduled Trading Day immediately following the last
 Scheduled Trading Day of the Trading Period and ending on the Exchange
 Business Day on which, subject to applicable regulatory requirements and
 market conditions, Barclays completes in a reasonably timely manner the
 purchase of a number of shares equal to the absolute value of the Number of
 Shares to be Delivered (each such Share, a “Hedge
 Repurchase Share”). With respect to each Scheduled Trading Day
 during the Cash Settlement Pricing Period, Barclays shall deliver a notice
 (each such notice, a “Hedge Repurchase
 Notice”) to the Counterparty of the number of Hedge Repurchase
 Shares purchased by Barclays on such Scheduled Trading Day. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Share Delivery Conditions. If Physical Settlement by Counterparty
 applies, Counterparty may deliver Free Shares in respect of its settlement
 obligations only if the following conditions have been satisfied (the “Registration Provisions”): (i) a
 registration statement (“Registration
 Statement”) (which may be a shelf registration statement filed
 pursuant to Rule 415 under the Securities Act of 1933, as amended) covering
 public resale by Barclays (or an affiliate thereof) of any Shares delivered
 by Counterparty to Barclays under such Physical Settlement by Counterparty (“Settlement Shares”) by Barclays shall
 have been filed with, and declared effective by, the Securities and Exchange Commission
 (the “SEC”) no later than one
 Scheduled Trading Day prior to the Settlement Date and such Registration
 Statement continues to be in effect at all times to and including the date
 that Barclays 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 Barclays, (iii) Barclays shall have been afforded
 a reasonable opportunity to conduct a due diligence investigation with
 respect to Counterparty

 

13

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 customary in
 scope for transactions pursuant to which Barclays (or an affiliate thereof)
 acts as an underwriter of equity securities and the results of such
 investigation are satisfactory to Barclays, in its discretion, and (iv) as of
 the Settlement Date, an agreement between Barclays and Counterparty of
 reasonable and customary underwriting terms including but not limited to
 indemnification and contribution and due diligence (the “Underwriting Agreement”) shall have been
 entered into with Barclays in connection with the public resale of the
 Settlement Shares by Barclays (or an affiliate thereof). Notwithstanding the
 foregoing, if Counterparty elects for Physical Settlement by Counterparty to
 apply and Counterparty delivers Restricted Shares in respect of its
 settlement obligation, Barclays shall attempt to sell the 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.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counterparty
 agrees that any Registration Statement it files for purposes of Physical
 Settlement by Counterparty pursuant to the provisions above, at the time the
 same becomes effective, will not contain an untrue statement of a material
 fact or omit to state a material fact required to be stated therein to make
 the statements therein not misleading. Counterparty represents that any
 prospectus delivered to Barclays in connection with sales made under the
 Registration Statement (as such prospectus may be supplemented from time to
 time) will not include an untrue statement of a material fact or omit to
 state a material fact necessary in order to make the statements therein, in
 light of the circumstances under which they were made, not misleading.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 Transfer or Assignment. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counterparty
 may not transfer or assign any of its rights or obligations under the
 Transaction without the prior written consent of Barclays. Notwithstanding
 any provision of the Agreement to the contrary, Barclays may, subject to (A)
 the following conditions:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)
 Counterparty will not be required to pay to the transferee an amount in
 respect of an Indemnifiable Tax under Section 2(d)(i)(4) of the Agreement
 (except in respect of interest under Section 2(e), 6(d)(ii), or 6(e)) greater
 than the amount in respect of which Counterparty would have been required to
 pay to Barclays in the absence of such transfer;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)
 Counterparty will not receive a payment from which an amount has been
 withheld or deducted, on account of a Tax under Section 2(d)(i) (except in
 respect of interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement),
 in excess of that which Barclays would have been required to so withhold or
 deduct in the absence of such transfer, unless the transferee would be
 required to make additional payments pursuant to Section 2(d)(i)(4) of the
 Agreement corresponding to such withholding or deduction;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii) It is
 not unlawful for either party to perform any obligation under the Agreement
 or the Transaction as a result of such transfer; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iv) An
 Event of Default or Termination Event does not occur as a result of such
 transfer;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 provided that with respect to the results
 described in clauses (i) and (ii) above, Barclays will cause the transferee
 to make, and Counterparty will make, such reasonable Payer Tax
 Representations and Payee Tax Representations as may be mutually agreed upon
 by the transferee and Counterparty in order to permit such parties to
 determine that such results will not occur upon or after the transfer; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)
 applicable law, freely transfer and assign all of its rights and obligations
 under the Transaction without the consent of Counterparty to any affiliate of
 Barclays whose obligations hereunder are guaranteed by Barclays.

 

14

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Notwithstanding
 any other provision in this Confirmation to the contrary requiring or
 allowing Barclays to purchase, sell, receive or deliver any Shares or other
 securities to or from Counterparty, Barclays may designate any of its
 Affiliates to purchase, sell, receive or deliver Shares or other securities
 and otherwise to perform Barclays’ obligations in respect of the Transaction.
 Barclays shall be discharged of its obligations to Counterparty only to the
 extent of any such performance such Affiliate.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 Role of Agent. Each of Barclays and
 Counterparty acknowledges to and agrees with the other party hereto and to
 and with the Agent that (i) the Agent is acting as agent for Barclays under
 the Transaction pursuant to instructions from such party, (ii) the Agent is
 not a principal or party to the Transaction, and may transfer its rights and
 obligations with respect to the Transaction to another entity registered as a
 broker with the Securities and Exchange Commission, (iii) the Agent shall
 have no responsibility, obligation or liability, by way of issuance,
 guaranty, endorsement or otherwise in any manner with respect to the
 performance of either party under the Transaction, (iv) Barclays and the
 Agent have not given, and Counterparty is not relying (for purposes of making
 any investment decision or otherwise) upon, any statements, opinions or
 representations (whether written or oral) of Barclays or the Agent, other
 than the representations expressly set forth in this Confirmation or the
 Agreement, and (v) each party agrees to proceed solely against the other
 party, and not the Agent, to collect or recover any money or securities owed
 to it in connection with the Transaction. Each party hereto acknowledges and
 agrees that the Agent is an intended third party beneficiary hereunder with
 respect to this paragraph 5(j). Counterparty acknowledges that the Agent is
 an affiliate of Barclays. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (l)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (m)

 	
 Netting and Setoff. Obligations under the
 Transaction shall not be netted, recouped or set off (including pursuant to
 Section 6 of the Agreement) against any other obligations of the parties,
 whether arising under the Agreement, this Confirmation, under any other
 agreement between the parties hereto, by operation of law or otherwise, and
 no other obligations of the parties shall be netted, recouped or set off
 (including pursuant to Section 6 of the Agreement) against obligations under
 the Transaction, whether arising under the Agreement, this Confirmation,
 under any other agreement between the parties hereto, by operation of law or
 otherwise, and each party hereby waives any such right of setoff, netting or
 recoupment; provided that both
 parties agree that subparagraph (ii) of Section 2(c) of the Agreement shall
 apply to the Transaction, except that upon the occurrence of an Event of
 Default or Termination Event with respect to a party who is the Defaulting
 Party or the Affected Party (“X”),
 the other party (“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 the Transaction 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 effected under this paragraph.
 “Equity Contract” shall mean for
 purposes of this paragraph 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 the Termination Currency at the rate of
 exchange at which such party would be able, acting in a reasonable manner and
 in good faith, to purchase the relevant amount of such currency. 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 section
 shall be effective to create a charge or other security interest. 

 

15

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (n)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (o)

 	
 Alternative Calculations and Counterparty Payment on Early
 Termination and on Certain Extraordinary Events. If
 Barclays owes Counterparty or if Counterparty owes Barclays any amount in
 connection with the Transaction (i) pursuant to Sections 12.2, 12.3, 12.6,
 12.7 or 12.9 of the Equity Definitions or (ii) pursuant to Section 6(d)(ii)
 of the Agreement (a “Payment Obligation”),
 Counterparty shall have the right, in its sole discretion, to satisfy or to
 require Barclays to satisfy, as the case may be, any such Payment Obligation
 by delivery of Termination Delivery Units (as defined below) by giving
 irrevocable telephonic notice to Barclays, confirmed in writing within one
 Scheduled Trading Day, no later than noon New York time on the Scheduled
 Trading Day immediately following the receipt of notice that an Early
 Termination Date has occurred or that the Transaction has been cancelled or
 terminated, as applicable, where such notice to Barclays shall include a
 representation and warranty from Counterparty that it is not, as of the date
 of the telephonic notice and the date of such written notice, aware of any
 material non-public information concerning itself or the Shares (where
 “material” shall have the meaning set forth in paragraph 5(p) below) (“Notice of Counterparty Termination Delivery”);
 provided that if Counterparty
 does not elect to require Barclays to satisfy its Payment Obligation by
 delivery of Termination Delivery Units, Barclays shall have the right
 (without regard to the exceptions set forth in clauses (i) and (ii) above),
 in its sole discretion, to elect to satisfy its Payment Obligation by
 delivery of Termination Delivery Units, notwithstanding Counterparty’s
 failure to elect or election to the contrary; and provided further that Counterparty shall not have the
 right to so elect (but, for the avoidance of doubt, Barclays shall have the
 right to so elect) in the event of (i) an Insolvency, a Nationalization 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 (ii) an Event of Default in
 which Counterparty is the Defaulting Party or a Termination Event in which
 Counterparty is the Affected Party, which Event of Default or Termination
 Event resulted from an event or events within Counterparty’s control. Within
 a commercially reasonable period of time following receipt of a Notice of
 Counterparty Termination Delivery, Barclays shall deliver to Counterparty or
 Counterparty shall deliver to Barclays, as the case may be, a number of
 Termination Delivery Units having a fair market value (net of any brokerage
 and underwriting commissions and fees, including any customary private
 placement fees) equal to the amount of such Payment Obligation (such number
 of Termination Delivery Units to be delivered to be determined by the
 Calculation Agent as the number of whole Termination Delivery Units that
 could be sold over a commercially reasonable period of time to generate
 proceeds equal to the cash equivalent of such payment obligation). If the
 provisions set forth in this paragraph are applicable, the provisions of
 Sections 9.8, 9.9, 9.10, 9.11 (modified as described above) and 9.12 of the
 Equity Definitions shall be applicable, except that all references to
 “Shares” shall be read as references to “Termination Delivery Units.” “Termination Delivery Units” means in the
 case of a Termination Event, Event of Default or Delisting, one Share or, in
 the case of Nationalization, Insolvency, Tender Offer or Merger Event, a unit
 consisting of the number or amount of each type of property received by a
 holder of one Share (without consideration of any requirement to pay cash or
 other consideration in lieu of fractional amounts of any securities) in such
 Nationalization, Insolvency, Tender Offer or Merger Event; provided that if such Nationalization,
 Insolvency, Tender Offer or Merger Event involves a choice of consideration
 to be received by holders, such holder shall be deemed to have elected to
 receive the maximum possible amount of cash. 

 

16

	
  

 	
  

 	
  

 
	
  

 	
 (p)

 	
 No Material Non-Public Information.
 On the Trade Date, Counterparty represents and warrants to Barclays that it
 is not aware of any material non-public information concerning itself or the
 Shares. “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 Shares.

 
	
  

 	
  

 	
  

 
	
  

 	
 (q)

 	
 Maximum Number of Shares. Notwithstanding
 any provision of this Confirmation, the Agreement or the Equity Definitions
 to the contrary, in no event shall the aggregate number of Shares that
 Counterparty shall be obligated to deliver in connection with this
 Transaction exceed 5 million Shares, as such number may be proportionately
 adjusted by the Calculation Agent to reflect stock splits or similar events. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (r)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (s)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (t)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (u)

 	
 Delivery of Cash.
 Notwithstanding any provision of this Confirmation, the Agreement, Equity
 Definitions or any other agreement between the parties to the contrary,
 nothing in this Confirmation shall be interpreted or given effect so as to
 require Counterparty to deliver cash, except in circumstances where such
 requirement is permitted for classification of the Transaction as equity
 under EITF 00-19. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (w)

 	
 Payments on Early Termination.
 The parties hereto agree that for the Transaction, for the purposes of
 Section 6(e) of the Agreement, the Agreement shall be deemed to have been
 amended 

 

17

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 to incorporate
 the modifications set out in the ISDA Close-out Amount Protocol, as published
 on February 27, 2009 by the International Swaps and Derivatives Association,
 Inc. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (x)

 	
 Governing Law. The law of the State of New
 York (without reference to choice of law doctrine). 

 
	
  

 	
  

 	
  

 
	
  

 	
 (w)

 	
 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. 

 
	
  

 	
  

 
	
 6.

 	
 Account Details: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Account for
 payments to Counterparty: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Quest Diagnostics
 Incorporated 

 Bank: 

 ABA: 

 Acct: No: 

 
	
  

 	
  

 	
 Acct Name:
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account for
 delivery of Shares to Counterparty: 

 Quest Diagnostics Incorporated 

 Transfer Agent: Computershare 

 Acct No.: 

 
	
  

 
	
  

 	
 (b)

 	
 Account for
 payments to Barclays:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Bank:
 

 ABA# 

 BIC: 

 Acct: 

 Beneficiary:

 
	
  

 	
  

 	
 Ref:
 

 
	
  

 	
  

 	
  

 
	
 7.

 	
 Offices:

 

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

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

	
  

 	
  

 
	
 8.

 	
 Notices: 

 

For purposes
of this Confirmation: 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Address for notices
 or communications to Counterparty: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Quest
 Diagnostics Incorporated 

 3 Giralda Farms 

 Madison, NJ 07940 

 Attention: Tracy Cinco-Abela

 

18

	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Address for
 notices or communications to Barclays: 

 

	
  

 	
  

 	
  

 
	
  

 	
 Barclays
 Bank PLC 

 
	
  

 	
 c/o Barclays
 Capital Inc. 

 
	
  

 	
 745 Seventh
 Ave. 

 
	
  

 	
 New York, NY
 10019 

 
	
  

 	
 Attn:

 	
 Paul
 Robinson 

 

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

19

Counterparty
hereby agrees to check this Confirmation and to confirm that the foregoing
correctly sets forth the terms of the Transaction by signing in the space
provided below and returning to Barclays a facsimile of the fully-executed
Confirmation to Barclays at (+1) 917-522-0458. Originals shall be provided for
your execution upon your request. 

Very truly
yours, 

	
  

 	
  

 	
  

 
	
 BARCLAYS CAPITAL INC.,

 	
  

 
	
 acting
 solely as Agent in connection with this Transaction

 
	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Brian C. Spencer 

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name: Brian C. Spencer

 	
  

 
	
  

 	
 Title: Authorized Signatory

 	
  

 
	
  

 	
  

 	
  

 
	
 Accepted and
 confirmed as of the Trade Date:

 
	
  

 	
  

 	
  

 
	
 QUEST DIAGNOSTICS INCORPORATED

 
	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Robert F. O’Keef

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Robert F. O’Keef

 
	
  

 	
 Name: Robert F. O’Keef

 	
  

 
	
  

 	
 Title: Vice President and Treasurer

 	
  

 

20

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