Document:

Addititonal Warrants Confirmation

 Exhibit 10.4 
 EXECUTION VERSION 
 THE SECURITIES REPRESENTED HEREBY (THE
“WARRANTS”) WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE WARRANTS MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREOF. 
 GOLDMAN, SACHS & CO. | 200 WEST STREET | NEW YORK, NEW YORK 10282-2198 |TEL: 212-902-1000 
 Opening Transaction 
  

					
	To:	  	 Volcano Corporation
 3661 Valley Centre Drive, Suite 200
 San Diego, California 92130

		  	Attention:	  	John Dahldorf
		  	Telephone No.:	  	(858) 720-4112
		  	Facsimile No.:	  	(858) 720-0383
		
	A/C:	  	042742270
		
	From:	  	Goldman, Sachs & Co.
		
	Re:	  	Additional Warrants
		
	Ref. No:	  	SDB4166223146
		
	Date:	  	December 5, 2012

  
  

Dear Ladies and Gentlemen: 
 The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the Warrants issued by Volcano Corporation (“Company”) to Goldman,
Sachs & Co. (“Dealer”) as of the Trade Date specified below (the “Transaction”). This letter agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.
This Confirmation shall replace any previous agreements and serve as the final documentation for 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 shall govern. The Transaction shall be deemed to be a Share Option
Transaction within the meaning set forth in the Equity Definitions. 
 Each party is hereby advised, and each
such party acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial transactions and has taken other material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below. 
 1. This Confirmation evidences a complete and binding
agreement between Dealer and Company as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the
“Agreement”) as if Dealer and Company had executed an agreement in such form (but without any Schedule except for the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine))
on the Trade Date. In the event of any inconsistency between provisions of that Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby agree that no
Transaction other than the Transaction to which this Confirmation relates shall be governed by the Agreement. 

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

			
	 Trade Date:
	  	 December 5, 2012

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

		
	 Warrants:
	  	 Equity call warrants, each giving the holder the right to purchase a number of Shares equal to the Warrant Entitlement at a price per Share equal to the Strike
Price, subject to the terms set forth under the caption “Settlement Terms” below. For the purposes of the Equity Definitions, each reference to a Warrant herein shall be deemed to be a reference to a Call Option.

		
	 Warrant Style:
	  	 European

		
	 Seller:
	  	 Company

		
	 Buyer:
	  	 Dealer

		
	 Shares:
	  	 The common stock of Company, par value USD 0.001 per Share (Exchange symbol “VOLC”).

		
	 Number of Warrants:
	  	 1,187,987. For the avoidance of doubt, the Number of Warrants shall be reduced by any Warrants exercised or deemed exercised hereunder. In no event will the
Number of Warrants be less than zero.

		
	 Warrant Entitlement:
	  	 One Share per Warrant

		
	 Strike Price:
	  	 USD 37.5900

		
	 Premium:
	  	 USD 4,551,300

		
	 Premium Payment Date:
	  	 December 10, 2012

		
	 Exchange:
	  	 The NASDAQ Global Select Market

		
	 Related Exchange(s):
	  	 All Exchanges

 Procedures for Exercise. 

			
		
	 Expiration Time:
	  	 The Valuation Time

		
	 Expiration Dates:
	  	 Each Scheduled Trading Day during the period from, and including, the First Expiration Date to, but excluding, the 120th Scheduled Trading Day following the First Expiration Date shall be
an “Expiration Date” for a number of Warrants equal to the Daily Number of Warrants on such date; provided that, notwithstanding anything to the contrary in the Equity Definitions, if any such date is a Disrupted Day, the
Calculation Agent shall make adjustments, if applicable, to the Daily Number of Warrants or shall reduce such Daily Number of Warrants to zero for which such day shall be an Expiration Date and shall designate a Scheduled Trading Day or a number of
Scheduled Trading Days as the Expiration Date(s) for the remaining Daily Number of Warrants or a portion thereof for the originally scheduled Expiration Date; and provided further that if such Expiration Date has not occurred pursuant to this
clause as of the eighth

  
 2 

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

		
	 First Expiration Date:
	  	 March 15, 2018 (or if such day is not a Scheduled Trading Day, the next following Scheduled Trading Day), subject to Market Disruption Event
below.

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

		
	 Automatic Exercise:
	  	 Applicable; and means that for each Expiration Date, a number of Warrants equal to the Daily Number of Warrants for such Expiration Date will be deemed to be
automatically exercised at the Expiration Time on such Expiration Date.

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

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

 Valuation Terms.

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

		
	 Valuation Date:
	  	 Each Exercise Date.

 Settlement Terms. 

			
		
	 Settlement Method Election:
	  	 Applicable; provided that (i) references to “Physical Settlement” in Section 7.1 of the Equity Definitions shall be replaced by references to
“Net Share Settlement”; (ii) Company may elect Cash Settlement only if Company represents and warrants to Dealer in writing on the date of such election that (A) Company is not in possession of any material non-public information regarding
Company or the Shares, (B) Company is electing Cash Settlement in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws, and (C) the assets of Company at their fair valuation exceed the liabilities of
Company (including contingent liabilities), the capital of Company is adequate to conduct the business of Company, and Company has the ability to pay its debts and obligations as such debts mature and does not intend to, or does
not

  
 3 

			
		  	 believe that it will, incur debt beyond its ability to pay as such debts mature; (iii) the same election of settlement method shall apply to all Expiration Dates
hereunder; and (iv) no event of default has occurred and is continuing under any indebtedness of the Company or its subsidiaries in an aggregate principal amount of $17.5 million or more. Notwithstanding the foregoing, Company’s election of
Cash Settlement will not be valid, and Net Share Settlement will apply, if Dealer notifies Company that, in Dealer’s good faith reasonable judgment based upon the advice of counsel and as a result of events occurring after the Trade Date, the
election of Cash Settlement or any purchases of Shares that Dealer (or its affialites) might make in connection therewith would raise material risks under applicable securities laws.

		
	 Electing Party:
	  	 Company

		
	 Settlement Method Election Date:
	  	 The third Scheduled Trading Day immediately preceding the First Expiration Date.

		
	 Default Settlement Method:
	  	 Net Share Settlement

		
	 Net Share Settlement:
	  	 If Net Share Settlement is applicable, then on the relevant Settlement Date, Company shall deliver to Dealer (i) a number of Shares equal to the Share Delivery
Quantity for such Settlement Date to the account specified hereto free of payment through the Clearance System and (ii) pay to Dealer an amount of cash equal to the Fractional Share Amount.

		
	 Share Delivery Quantity:
	  	 For any Settlement Date, a number of Shares, as calculated by the Calculation Agent, equal to the Net Share Settlement Amount for such Settlement Date divided
by the Settlement Price on the Valuation Date for such Settlement Date, rounded down to the nearest whole number (for any Settlement Date, the fraction of a Share eliminated by such rounding, the “Share Fraction” for such
Settlement Date).

		
	 Net Share Settlement Amount:
	  	 For any Settlement Date, an amount equal to the product of (i) the number of Warrants exercised or deemed exercised on the relevant Exercise Date, (ii) the
Strike Price Differential for the relevant Valuation Date and (iii) the Warrant Entitlement.

		
	 Fractional Share Amount:
	  	 For any Settlement Date, an amount of cash in USD equal to the product of (i) the Share Fraction for such Settlement Date and (ii) the Settlement Price on the
Valuation Date for such Settlement Date.

		
	 Cash Settlement:
	  	 If Cash Settlement is applicable, on the relevant Settlement Date, Company shall pay to Dealer an amount of cash in USD equal to the Net Share Settlement Amount
for such Settlement Date.

		
	 Settlement Price:
	  	 For any Valuation Date, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page VOLC
<equity> AQR (or any successor thereto) in respect of the period from the scheduled opening time of the Exchange to the Scheduled Closing Time on such Valuation Date (or if such volume-weighted average price is unavailable, the market value of
one Share

  
 4 

			
		  	 on such Valuation Date, as determined by the Calculation Agent). Notwithstanding the foregoing, if (i) any Expiration Date is a Disrupted Day and (ii) the
Calculation Agent determines that such Expiration Date shall be an Expiration Date for fewer than the Daily Number of Warrants, as described above, then the Settlement Price for the relevant Valuation Date shall be the volume-weighted average price
per Share on such Valuation Date on the Exchange, as determined by the Calculation Agent based on such sources as it deems appropriate using a volume-weighted methodology, for the portion of such Valuation Date for which the Calculation Agent
determines there is no Market Disruption Event.

		
	 Settlement Dates:
	  	 As determined pursuant to Section 9.4 of the Equity Definitions, subject to Section 9(k)(i) hereof.

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

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

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

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

  
 5 

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

		
	 Share-for-Share:
	  	 Modified Calculation Agent Adjustment

		
	 Share-for-Other:
	  	 Cancellation and Payment (Calculation Agent Determination)

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

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

		
	 Share-for-Share:
	  	 Modified Calculation Agent Adjustment

		
	 Share-for-Other:
	  	 Modified Calculation Agent Adjustment

		
	 Share-for-Combined:
	  	 Modified Calculation Agent Adjustment

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

  
 6 

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

		
	 Additional Disruption Events:
	  	
		
	 Change in Law:
	  	 Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in
the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation”, and (ii) by adding the phrase “and/or Hedge Position” after the word “Shares” in clause (X) thereof;
provided, further that (i) any determination as to whether (A) the adoption of or any change in any applicable law or regulation (including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of
new regulations authorized or mandated by existing statute) or (B) the promulgation of or any change in the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any
action taken by a taxing authority), in each case, constitutes a “Change in Law” shall be made without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision
in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, and (ii) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word “regulation” in the
second line thereof with the phrase “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)”.

		
	 Failure to Deliver:
	  	 Not Applicable

		
	 Insolvency Filing:
	  	 Applicable

		
	 Hedging Disruption:
	  	 Applicable; provided that:

		
		  	 (i)      Section 12.9(a)(v) of the Equity Definitions is hereby amended by
inserting the following two phrases at the end of such Section:

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

  
 7 

			
		  	 scheduled exercise or scheduled expiration of call options on the Shares sold by Dealer to Company (in connection with the issuance of
1.75% convertible notes due 2017 issued by Company) in accordance with the terms of such call options shall not provide the sole basis for the occurrence of a Hedging Disruption event.”; and

		
		  	 (ii)     Section 12.9(b)(iii) of the Equity Definitions is hereby amended by inserting
in the third line thereof, after the words “to terminate the Transaction”, the words “or a portion of the Transaction affected by such Hedging Disruption”.

		
	 Increased Cost of Hedging:
	  	 Not Applicable

		
	 Loss of Stock Borrow:
	  	 Applicable

		
	 Maximum Stock Loan Rate:
	  	 200 basis points

		
	 Increased Cost of Stock Borrow:
	  	 Applicable

		
	 Initial Stock Loan Rate:
	  	 25 basis points

		
	 Hedging Party:
	  	 For all applicable Additional Disruption Events, Dealer.

		
	 Determining Party:
	  	 For all applicable Extraordinary Events, Dealer.

		
	 Non-Reliance:
	  	 Applicable

		
	 Agreements and Acknowledgments Regarding Hedging Activities:
	  	 Applicable

		
	 Additional Acknowledgments:
	  	 Applicable

		
	 4.      Calculation Agent.
	  	 Dealer, whose judgments, determinations and calculations shall be made in good faith and in a commercially reasonable manner. Following any determination or
calculation by the Calculation Agent hereunder, upon a written request by Company, the Calculation Agent will provide to Company by e-mail to the e-mail address provided by Company in such written request a report (in a commonly used file format for
the storage and manipulation of financial data) displaying in reasonable detail the basis for such calculation, it being understood that the Calculation Agent shall not be obligated to disclose any proprietary models used by it for such
calculation.

  

	5.	 Account Details. 

  

	 	(a)	 Account for payments to Company: 

  

			
	Bank:	  	JPMorgan Chase Bank, N.A.
	ABA#:	  	071000013
	Acct No.:	  	747500346
	Beneficiary:	  	Volcano Corporation
	Ref:	  	2012 Warrant Transaction

 Account for delivery of Shares from Company: 

To be provided by Company. 

  
 8 

	 	(b)	 Account for payments to Dealer: 

 Chase Manhattan Bank New York 
 For A/C Goldman, Sachs &
Co. 
 A/C #930-1-011483 
 ABA: 021-000021 
 Account for delivery of Shares to Dealer:

 DTC 005 
  

	6.	 Offices. 

  

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

 

	 	(b)	 The Office of Dealer for the Transaction is: New York 

200 West Street, New York, New York 10282-2198 

 

	7.	 Notices. 

  

	 	(a)	 Address for notices or communications to Company: 

 

			
	 Volcano Corporation
 3661 Valley Centre Drive, Suite 200
 San Diego, California
92130

	 Attention:
	  	 John Dahldorf

	 Telephone No.:
	  	 (858) 720-4112

	 Facsimile No.:
	  	 (858) 720-0383

  

	 	(b)	 Address for notices or communications to Dealer: 

  

			
	 Goldman, Sachs & Co.
 200 West Street
 New York, NY 10282-2198

	 Attention:
	  	 Vijay Culas
 Equity Capital Markets

	 Telephone No.:
	  	 (415) 249-7383

	 Facsimile No.:
	  	 (212) 428-1898

	 Email:
	  	 vijay.culas@gs.com

 With a copy to: 

 

			
	 Attention:
	  	 Kevin Castellano
 Equity Capital Markets

	 Telephone No.:
	  	 (415) 249-7384

	 Facsimile No.:
	  	 (646) 769-7571

	 Email:
	  	 kevin.castellano@gs.com

 And email notification to the following address: 

Eq-derivs-notifications@am.ibd.gs.com 
  

	8.	 Representations and Warranties of Company. 

Each of the representations and warranties of Company set forth in Section 3 of the Underwriting Agreement (the
“Underwriting Agreement”), dated December 4, 2012, among Company, J.P. Morgan Securities LLC and Goldman, Sachs & Co., as representatives of the Underwriters party thereto (the “Underwriters”), are
true and correct and are hereby deemed to be repeated to Dealer as if set forth herein. In lieu of the representations and 

  
 9 

 
warranties set forth in Section 3(a) of the Agreement, Company hereby further represents and warrants to Dealer on the date hereof, on and as of the Premium Payment Date and, in the case of
the representations in Section 8(d), at all times until termination of the Transaction, that: 
  

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

  

	 	(b)	 Neither the execution and delivery of this Confirmation nor the incurrence or performance of obligations of Company hereunder will conflict with or
result in a breach of (i) the certificate of incorporation or by-laws (or any equivalent documents) of Company, (ii) any applicable law or regulation, or any order, writ, injunction or decree of any court or governmental authority or
agency, or (iii) any agreement or instrument filed as an exhibit to, or incorporated by reference therein, Company’s Form 10-K filed on February 29, 2012, Company’s Form 10-Q filed on May 3, 2012, Company’s Form 10-Q
filed on August 3, 2012 or Company’s Form 10-Q filed on November 7, 2012, in each case, with the Securities and Exchange Commission, to which Company or any of its subsidiaries is a party or by which Company or any of its subsidiaries
is bound or to which Company or any of its subsidiaries is subject, or constitute a default under, or result in the creation of any lien under, any such agreement or instrument. 

 

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

  

	 	(d)	 (i) A number of Shares equal to the Warrant Shares (as defined in Section 9(p)(i) below) have been reserved for issuance by all required
corporate action of Company and (ii) the Warrant Shares have been duly authorized and, when delivered against payment therefor (which may include Net Share Settlement in lieu of cash) and otherwise as contemplated by the terms of the Warrants
following the exercise of the Warrants in accordance with the terms and conditions of the Warrants, will be validly issued, fully-paid and non-assessable, and the issuance of the Warrant Shares will not be subject to any preemptive or similar
rights. 

  

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

  

	 	(f)	 Company is an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended,
other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act). 

  

	 	(g)	 Company is not, on the date hereof, aware of any material non-public information with respect to Company. 

 

	 	(h)	 Without limiting the generality of Section 13.1 of the Equity Definitions, Company acknowledges that neither Dealer nor any of its affiliates
is making any representations or warranties or taking any position or expressing any view with respect to the treatment of the Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815,
Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity (or any successor issue statements).

  
 10 

	 	(i)	 Company understands that notwithstanding any other relationship between Company and Dealer and its affiliates, in connection with this Transaction
and any other over-the-counter derivative transactions between Company and Dealer or its affiliates, Dealer or its affiliate is acting as principal and is not a fiduciary or advisor in respect of any such transaction, including any entry, exercise,
amendment, unwind or termination thereof. 

  

	 	(j)	 Company (i) is an “institutional account” as defined in FINRA Rule 4512(c); (ii) is capable of evaluating investment risks
independently, both in general and with regard to all transactions and investment strategies involving a security or securities, and will exercise independent judgment in evaluating the recommendations of Dealer or its associating persons; and
(iii) will notify Dealer if any of the statements contained in clause (i) or (ii) above ceases to be true. 

  

	9.	 Other Provisions. 

  

	 	(a)	 Opinions. Company shall deliver to Dealer an opinion of counsel, dated as of the Trade Date, with respect to the matters set forth in
Sections 8(a) through (d)(ii) of this Confirmation (subject to customary exceptions and qualifications). Delivery of such opinion to Dealer shall be a condition precedent for the purpose of Section 2(a)(iii) of the Agreement with respect to
each obligation of Dealer under Section 2(a)(i) of the Agreement. 

  

	 	(b)	 Repurchase Notices. Company shall, on any day on which Company effects any repurchase of Shares, promptly give Dealer a written notice
of such repurchase (a “Repurchase Notice”) on such day if following such repurchase, the Notice Percentage as determined on such day is (i) greater than 17.4% or (ii) thereafter greater by 0.5% than the Notice Percentage
included in the immediately preceding Repurchase Notice; provided that Company shall have publicly disclosed such information prior to the time of such Repurchase Notice if and to the extent that it would have constituted material non-public
information in respect of Company, the Shares or otherwise. The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of which is the sum of (x) the product of the Number of Warrants and
the Warrant Entitlement and (y) the aggregate number of Shares underlying any other warrants purchased by Dealer from Company and the denominator of which is the number of Shares outstanding on such day. Company agrees to indemnify and hold
harmless Dealer and its affiliates and their respective officers, directors, employees, affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”) from and against any and all losses (including losses
relating to Dealer’s hedging activities as a consequence of becoming, or of the risk of becoming, a Section 16 “insider”, including without limitation, any forbearance from hedging activities or cessation of hedging activities
and any losses in connection therewith with respect to the Transaction), claims, damages, judgments, liabilities and expenses (including reasonable attorney’s fees), joint or several, to which an Indemnified Person may become subject under
applicable securities laws (including, without limitation, Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as a result of Company’s failure to provide Dealer with a Repurchase Notice on
the day and in the manner specified in this paragraph, and to reimburse, within 30 days, upon written request, each of such Indemnified Persons for any reasonable legal or other expenses incurred in connection with investigating, preparing for,
providing testimony or other evidence in connection with or defending any of the foregoing. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the
Indemnified Person, such Indemnified Person shall promptly notify Company in writing, and Company, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and
any others Company may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding. Company shall not be liable for any settlement of any proceeding effected without its written consent, but if settled
with such consent or if there be a final judgment for the plaintiff, Company agrees to indemnify any Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Company shall not, without the prior written
consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Person,
unless such settlement includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding on terms reasonably satisfactory to such Indemnified Person. If the indemnification
provided for in this paragraph is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then Company under such paragraph, in lieu of indemnifying

  
 11 

	 	 
such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities. The remedies provided for
in this paragraph are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity. The indemnity and contribution agreements contained in this paragraph shall remain
operative and in full force and effect regardless of the termination of the Transaction. 

  

	 	(c)	 Regulation M. Company is not on the Trade Date engaged in a distribution, as such term is used in Regulation M under the Exchange Act,
of any securities of Company, other than the distribution of USD 400,000,000 (or USD 460,000,000) aggregate principal amount of 1.75% Convertible Senior Notes due 2017. Company shall not, until the second Scheduled Trading Day immediately following
the Effective Date, engage in any such distribution other than as described in this paragraph. 

  

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

  

	 	(e)	 Transfer or Assignment. Company may not transfer any of its rights or obligations under the Transaction without the prior written
consent of Dealer. Dealer may, without Company’s consent, transfer or assign all or any part of its rights or obligations under the Transaction to any third party. If at any time at which (A) the Section 16 Percentage exceeds 8.0% or
(B) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such condition described in clauses (A) or (B), an “Excess Ownership Position”), Dealer is unable after using its commercially reasonable
efforts to effect a transfer or assignment of Warrants to a third party on pricing terms reasonably acceptable to Dealer and within a time period reasonably acceptable to Dealer such that no Excess Ownership Position exists, then Dealer may
designate any Exchange Business Day as an Early Termination Date with respect to a portion of the Transaction (the “Terminated Portion”), such that following such partial termination no Excess Ownership Position exists. In the event
that Dealer so designates an Early Termination Date with respect to a Terminated Portion, a payment shall be made pursuant to Section 6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction
having terms identical to the Transaction and a Number of Warrants equal to the number of Warrants underlying the Terminated Portion, (2) Company were the sole Affected Party with respect to such partial termination and (3) the Terminated
Portion were the sole Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(j) shall apply to any amount that is payable by Company to Dealer pursuant to this sentence as if Company was not the Affected Party). The
“Section 16 Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and each person subject to aggregation of Shares with Dealer under Section 13
or Section 16 of the Exchange Act and rules promulgated thereunder directly or indirectly beneficially own (as defined under Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder) and (B) the denominator
of which is the number of Shares outstanding. The “Share Amount” as of any day is the number of Shares that Dealer and any person whose ownership position would be aggregated with that of Dealer (Dealer or any such person, a
“Dealer Person”) under any law, rule, regulation, regulatory order or organizational documents or contracts of Company that are, in each case, applicable to ownership of Shares (“Applicable Restrictions”), owns,
beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership under any Applicable Restriction, as determined by Dealer in its reasonable discretion. The “Applicable Share
Limit” means a number of Shares equal to (A) the minimum number of Shares that could give rise to reporting or registration obligations or other requirements (including obtaining prior approval from any person or entity but excluding
any such requirement under which prior approval has been obtained) of a Dealer Person, or could result in an adverse effect on a Dealer Person, under any Applicable Restriction, as determined by Dealer in its reasonable discretion, minus
(B) 1% of the number of Shares outstanding. Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities, or make or receive any
payment in cash, to or from Company, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities, or make or receive such payment in cash, and otherwise to perform Dealer’s obligations in
respect of the Transaction and any such designee may assume such obligations. Dealer shall be discharged of its obligations to Company to the extent of any such performance. 

  
 12 

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

  

	 	(g)	 [Reserved.] 

  

	 	(h)	 Additional Provisions. 

  

	 	(i)	 Amendments to the Equity Definitions: 

  

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

  

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

  

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

 

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

  

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

 

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

  

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

  

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

 

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

  

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

 

	 	(ii)	 Notwithstanding anything to the contrary in this Confirmation, upon the occurrence of one of the following events, with respect to the Transaction,
(1) Dealer shall have the right to designate such event an Additional Termination Event and designate an Early Termination 

  
 13 

	 	 
Date pursuant to Section 6(b) of the Agreement, (2) Company shall be deemed the sole Affected Party with respect to such Additional Termination Event and (3) the Transaction shall
be deemed the sole Affected Transaction: 

  

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

  

	 	(B)	 The consummation of (I) any recapitalization, reclassification or change of the Shares (other than changes resulting from a subdivision,
combination or a change in par value) as a result of which the Shares would be converted into, or exchanged for, stock, other securities, other property or assets or (II)(i) any share exchange, consolidation or merger of Company pursuant to which
the Shares will be converted into cash, securities or other property or (ii) any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of Company and its
subsidiaries, taken as a whole, to any person other than one or more of our subsidiaries; provided, however, that neither (x) a transaction in which holders of Company’s common equity immediately prior to such transaction
own, as a result of such transaction, directly or indirectly, shares representing more than 50% of the voting power of all classes of common equity of the continuing or surviving corporation or transferee or the parent thereof immediately after such
event nor (y) any merger primarily for the purpose of changing Company’s jurisdiction of incorporation to another state within the United States of America or the District of Columbia and resulting in a reclassification, conversion or
exchange of outstanding Shares solely into shares of common stock of the surviving entity, shall, as a result of this clause (B), constitute an Additional Termination Event. 

 

	 	(C)	 The default by Company or any of its Significant Subsidiaries with respect to any mortgage, agreement or other instrument under which there may be
outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of $17.5 million in the aggregate of Company and/or any such subsidiary, whether such indebtedness now exists or shall hereafter be created
(i) resulting in such indebtedness becoming or being declared due and payable or (ii) constituting a failure to pay the principal or interest of any such debt when due and payable at its stated maturity, upon required repurchase, upon
declaration of acceleration or otherwise, unless, in either case, such indebtedness is discharged or such acceleration is cured, waived, rescinded, stayed or annulled within a period of 30 days after becoming due and payable.

  

	 	(D)	 Dealer, during the one year period immediately following the Effective Date, despite using commercially reasonable efforts, is unable or reasonably
determines that it is impractical or illegal, to hedge its exposure with respect to the Transaction in the public market without registration under the Securities Act or as a result of any legal, regulatory or self-regulatory requirements or related
policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer). 

  

	 	(E)	 Unless Counterparty has received Shareholder Approval (as defined in Section 9(p)(i) below), at any time the price per Share on the Exchange
(as determined by the Calculation Agent) is at or above USD 108.55 (subject to adjustment as provided in this Confirmation and the Equity Definitions, except that, for the avoidance of doubt, with respect to a Potential Adjustment Event, any such
adjustment may become effective as of the announcement of the relevant Potential Adjustment Event). 

 Notwithstanding the foregoing, a transaction or transactions described in clauses (A) or (B) above will not, as a result of clause (A) or (B) above, constitute an Additional
Termination 

  
 14 

 
Event if at least 90% of the consideration received or to be received by the holders of the Shares, excluding cash payments for fractional Shares or made pursuant to dissenters’ rights, in
connection with such transaction or transactions, consists of shares of common stock that are listed or quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors)
or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions. 

A “Significant Subsidiary”, for purposes of the foregoing provisions, is a subsidiary that is a
“significant subsidiary” as defined under Article 1, Rule 1-02(w) of Regulation S-X under the Exchange Act; provided that, in the case of a subsidiary that meets the criteria of clause (3) of the definition thereof but not clause
(1) or (2) thereof, such subsidiary shall not be deemed to be a significant subsidiary unless the subsidiary’s income from continuing operations before income taxes, extraordinary items and cumulative effect of a change in accounting
principle exclusive of amounts attributable to any non-controlling interests for the last completed fiscal year prior to the date of such determination exceeds $25.0 million. 

 

	 	(i)	 No Collateral or Setoff. Notwithstanding any provision of the Agreement or any other agreement between the parties to the contrary,
the obligations of Company hereunder are not secured by any collateral. Each party waives any and all rights it may have to set off obligations arising under the Agreement and the Transaction against other obligations between the parties, whether
arising under any other agreement between the parties hereto, by operation of law or otherwise. 

  

	 	(j)	 Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events. 

 

	 	(i)	 If, in respect of the Transaction, an amount is payable by Company to Dealer, (A) pursuant to Section 12.2, 12.3, 12.6, 12.7 or 12.9 of
the Equity Definitions or (B) pursuant to Section 6(d)(ii) of the Agreement (any such amount, a “Payment Obligation”), Company shall have the right, in its sole discretion, to satisfy the Payment Obligation by the Share
Termination Alternative (as defined below) (except that Company shall not have the right to make such an election in the event of (I) a Nationalization, Insolvency, Merger Event or Tender Offer, in each case, in which the consideration to be
paid to holders of Shares consists solely of cash, (II) a Merger Event or Tender Offer that is within Company’s control, or (III) an Event of Default in which Company is the Defaulting Party or a Termination Event in which Company is the
Affected Party, and in either case, the Event of Default or Termination Event resulted from an event or events within Company’s control) and shall give irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, no later than 12:00 p.m. (New York City time) on the Merger Date, Tender Offer Date, Announcement Date (in the case of a Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable; provided
that if Company does not validly elect to satisfy the Payment Obligation by the Share Termination Alternative, Dealer shall have the right to require Company to satisfy its Payment Obligation by the Share Termination Alternative.

  

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

			
		 	Share Termination Delivery Property:	  	 A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the relevant Payment Obligation divided by the Share
Termination Unit Price. The Calculation Agent shall adjust the amount of Share Termination Delivery Property by replacing any fractional portion of a

  
 15 

					
		 		  	 security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price
(without giving effect to any discount pursuant to Section 9(k)(i)).

			
		 	Share Termination Unit Price:	  	 The value to Dealer of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share
Termination Delivery Property, as determined by the Calculation Agent in its discretion by commercially reasonable means. In the case of a Private Placement of Share Termination Delivery Units that are Restricted Shares (as defined below), as set
forth in Section 9(k)(i) below, the Share Termination Unit Price shall be determined by the discounted price applicable to such Share Termination Delivery Units. In the case of a Registration Settlement of Share Termination Delivery Units that are
Restricted Shares (as defined below) as set forth in Section 9(k)(ii) below, the Share Termination Unit Price shall be the Settlement Price on the Merger Date, Tender Offer Date, Announcement Date (in the case of a Nationalization, Insolvency or
Delisting), Early Termination Date or date of cancellation, as applicable. The Calculation Agent shall notify Company of the Share Termination Unit Price at the time of notification of such Payment Obligation to Company or, if applicable, at the
time the discounted price applicable to the relevant Share Termination Units is determined pursuant to Section 9(k)(i).

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

			
		 	Failure to Deliver:	  	 Inapplicable

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

  
 16 

	 	(ii)	 Notwithstanding anything to the contrary in this Confirmation, any Payment Obligation shall, for all purposes, be calculated as if the Maximum
Delivery Amount were equal to the Warrant Shares; provided that the number of Shares deliverable pursuant to Section 9(j)(i) above (if applicable) shall not exceed the Maximum Delivery Amount as defined in Section 9(p)(i) below. For
the avoidance of doubt, the provisions set forth in Section 9(j)(i) above, including and subject to the conditions and limitations set forth therein and above, shall apply to any Payment Obligation amount resulting from such Additional
Termination Events. 

  

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

  

	 	(i)	 If Company elects to settle the Transaction pursuant to this clause (i) (a “Private Placement Settlement”), then delivery of
Restricted Shares by Company shall be effected in customary private placement procedures with respect to such Restricted Shares reasonably acceptable to Dealer; provided that Company may not elect a Private Placement Settlement if, on the
date of its election, it has taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Company to Dealer (or any affiliate designated by Dealer) of
the Restricted Shares or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Restricted Shares by Dealer (or any such affiliate of Dealer). The Private Placement Settlement of such Restricted
Shares shall include customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer or any designated buyer of the Restricted Shares by Dealer;
provided that such party shall enter into a confidentiality agreement, on terms reasonably satisfactory to Company and Dealer), opinions and certificates, and such other documentation as is customary for private placement agreements, all
reasonably acceptable to Dealer. In the case of a Private Placement Settlement, Dealer shall determine the appropriate discount to the Share Termination Unit Price (in the case of settlement of Share Termination Delivery Units pursuant to
Section 9(j) above) or any Settlement Price (in the case of settlement of Shares pursuant to Section 2 above) applicable to such Restricted Shares in a commercially reasonable manner and appropriately adjust the number of such Restricted
Shares to be delivered to Dealer hereunder. Notwithstanding the Agreement or this Confirmation, the date of delivery of such Restricted Shares shall be the Exchange Business Day following notice by Dealer to Company, of such applicable discount and
the number of Restricted Shares to be delivered pursuant to this clause (i). For the avoidance of doubt, delivery of Restricted Shares shall be due as set forth in the previous sentence and not be due on the Share Termination Payment Date (in the
case of settlement of Share Termination Delivery Units pursuant to Section 9(j) above) or on the Settlement Date for such Restricted Shares (in the case of settlement in Shares pursuant to Section 2 above). 

  
 17 

	 	(ii)	 If Company elects to settle the Transaction pursuant to this clause (ii) (a “Registration Settlement”), then Company shall
promptly (but in any event no later than the beginning of the Resale Period) file and use its commercially reasonable efforts to make effective under the Securities Act a registration statement or supplement or amend an outstanding registration
statement in form and substance reasonably satisfactory to Dealer, to cover the resale of such Restricted Shares in accordance with customary resale registration procedures, including covenants, conditions, representations, underwriting discounts
(if applicable), commissions (if applicable), indemnities, opinions and certificates, and such other documentation as is customary for equity resale underwriting agreements, all reasonably acceptable to Dealer; provided that Dealer (or an
affiliate of Dealer designated by Dealer) shall be afforded a reasonable opportunity to conduct a due diligence investigation with respect to Company that is customary in scope for underwritten follow-on offerings of equity securities of companies
of comparable size, maturity and lines of business reasonably acceptable to Dealer, subject to execution by Dealer or such designated affiliate of customary confidentiality agreements, on terms reasonably satisfactory to Company and Dealer. If
Dealer, in its sole reasonable discretion, is not satisfied with such procedures and documentation Private Placement Settlement shall apply. If Dealer is satisfied with such procedures and documentation, it shall sell the Restricted Shares pursuant
to such registration statement during a period (the “Resale Period”) commencing on the Exchange Business Day following delivery of such Restricted Shares (which, for the avoidance of doubt, shall be (x) the Share Termination
Payment Date in case of settlement in Share Termination Delivery Units pursuant to Section 9(j) above or (y) the Settlement Date in respect of the final Expiration Date for all Daily Number of Warrants) and ending on the earliest of
(i) the Exchange Business Day on which Dealer completes the sale of all Restricted Shares or, in the case of settlement of Share Termination Delivery Units, a sufficient number of Restricted Shares so that the realized net proceeds of such
sales equals or exceeds the Payment Obligation (as defined above), (ii) the date upon which all Restricted Shares have been sold or transferred pursuant to Rule 144 (or similar provisions then in force) or Rule 145(d)(2) (or any similar
provision then in force) under the Securities Act and (iii) the date upon which all Restricted Shares may be sold or transferred by a non-affiliate pursuant to Rule 144 (or any similar provision then in force) or Rule 145(d)(2) (or any similar
provision then in force) under the Securities Act. If the Payment Obligation exceeds the realized net proceeds from the sale of all such Restricted Shares, and Dealer used commercially reasonable efforts to effect such sale, Company shall transfer
to Dealer by the open of the regular trading session on the Exchange on the Exchange Trading Day immediately following the last day of the Resale Period the amount of such excess (the “Additional Amount”) in cash or in a number of
Shares (“Make-whole Shares”) in an amount that, based on the Settlement Price on the last day of the Resale Period (as if such day was the “Valuation Date” for purposes of computing such Settlement Price), has a dollar
value equal to the Additional Amount. The Resale Period shall continue to enable the sale of the Make-whole Shares. This provision shall be applied successively until the Additional Amount is equal to zero. In no event shall Company deliver a number
of Restricted Shares greater than the Maximum Delivery Amount (as defined in Section 9(p)(i) below). If the realized net proceeds from such resale exceed the Payment Obligation, Dealer shall, by the date three Currency Business Days immediately
following the last day of the Resale Period, transfer to Company the amount of such excess over the Payment Obligation in cash or, at the Company’s option, in Shares with a value equal to such amount, as determined by the Calculation Agent in a
commercially reasonable manner. Notwithstanding the foregoing, Company shall be permitted to suspend or delay any Resale Period for customary “black out periods.” 

 

	 	(iii)	 Without limiting the generality of the foregoing, Company agrees that any Restricted Shares delivered to Dealer, as purchaser of such Restricted
Shares, (A) may be transferred by and among Dealer and its affiliates and Company shall effect such transfer without any further action by Dealer and (B) after the period of 6 months from the Trade Date (or 1 year from the Trade Date if,
at such time, informational requirements of Rule 144(c) under the Securities Act are not satisfied with respect to Company) has elapsed after any Settlement Date or Share Termination Payment Date, as applicable, for such Restricted Shares, Company
shall promptly remove, or cause the transfer agent for such Restricted Shares to remove, any legends referring to any such restrictions or requirements from such Restricted Shares upon request by Dealer (or such affiliate of Dealer) to Company or
such transfer agent, without any 

  
 18 

	 	 
requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action
by Dealer (or such affiliate of Dealer). 

  

	 	(l)	 Limit on Beneficial Ownership. Notwithstanding any other provisions hereof, Dealer may not exercise any Warrant hereunder or be
entitled to take delivery of any Shares deliverable hereunder, and Automatic Exercise shall not apply with respect to any Warrant hereunder, to the extent (but only to the extent) that, after such receipt of any Shares upon the exercise of such
Warrant or otherwise hereunder and after taking into account any Shares deliverable to Dealer under the letter agreement dated December 4, 2012 between Dealer and Company regarding Base Warrants (the “Base Warrant
Confirmation”), (i) the Section 16 Percentage would exceed 8.0%, or (ii) the Share Amount would exceed the Applicable Share Limit. Any purported delivery hereunder shall be void and have no effect to the extent (but only to
the extent) that, after such delivery and after taking into account any Shares deliverable to Dealer under the Base Warrant Confirmation, (i) the Section 16 Percentage would exceed 8.0%, or (ii) the Share Amount would exceed the
Applicable Share Limit. If any delivery owed to Dealer hereunder is not made, in whole or in part, as a result of this provision, Company’s obligation to make such delivery shall not be extinguished and Company shall make such delivery as
promptly as practicable after, but in no event later than one Business Day after, Dealer gives notice to Company that, after such delivery, (i) the Section 16 Percentage would not exceed 8.0%, and (ii) the Share Amount would not
exceed the Applicable Share Limit. 

  

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

  

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

  

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

  
 19 

	 	(p)	 Maximum Share Delivery. 

  

	 	(i)	 Notwithstanding any other provision of this Confirmation, the Agreement or the Equity Definitions, in no event will Company at any time be required
to deliver to Dealer in connection with the Transaction a number of Shares (the “Maximum Delivery Amount”) greater than (x) prior to receipt of Shareholder Approval, the Maximum Number of Shares after taking into account any
Shares deliverable to Dealer under the Base Warrant Confirmation and (y) following receipt of Shareholder Approval, the Warrant Shares; provided that if, but for this Section 9(p)(i), Company would have been obligated to deliver to
Dealer in connection with the Transaction, after taking into account any Shares that would have been deliverable to Dealer under the Base Warrant Confirmation but for Section 9(p)(i) thereof, a number of Shares greater than the Maximum Number
of Shares as a result of an event or condition within Company’s control, Company will deliver cash to Dealer in lieu of such excess Shares in an amount as determined by the Calculation Agent in a commercially reasonable manner.

 “Maximum Number of Shares” means, for any day, 7,005,309 Shares,
minus the aggregate number of Shares previously delivered to Dealer pursuant to (i) this Confirmation and (ii) the Base Warrant Confirmation; provided that notwithstanding anything to the contrary in this Confirmation, the
Agreement or the Equity Definitions, in no event shall the Maximum Number of Shares be subject to adjustment, except for any adjustment pursuant to the terms of this Confirmation and the Equity Definitions in connection with stock splits or similar
changes to the Company’s capitalization. 
 “Shareholder Approval” means approval from
Company’s shareholders in accordance with the requirements of Rule 5635(d) of The Nasdaq Stock Market (or any successor thereto) for (x) the issuance pursuant to the Transaction of a number of Shares up to the Warrant Shares and
(y) the issuance pursuant to the Base Warrant Confirmation of a number of Shares up to two times the “Warrant Shares”, as defined therein. 
 “Warrant Shares” means a number of Shares equal to two times the Number of Warrants. 
  

	 	(ii)	 In the event Company shall not have delivered to Dealer the full number of Shares or Restricted Shares otherwise deliverable by Company to Dealer
pursuant to the terms of the Transaction because Company has insufficient authorized but unissued Shares (such deficit, the “Deficit Shares”), Company shall be continually obligated to deliver, from time to time, Shares or
Restricted Shares, as the case may be, to Dealer until the full number of Deficit Shares have been delivered pursuant to this Section 9(p)(ii), when, and to the extent that, (A) Shares are repurchased, acquired or otherwise received by
Company or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (B) authorized and unissued Shares reserved for issuance in respect of other transactions prior to such date
that prior to the relevant date become no longer so reserved or (C) Company additionally authorizes any unissued Shares that are not reserved for other transactions; provided that in no event shall Company deliver any Shares or
Restricted Shares to Dealer pursuant to this Section 9(p)(ii) to the extent that such delivery would cause the aggregate number of Shares and Restricted Shares delivered to Dealer to exceed the Maximum Delivery Amount. Company shall immediately
notify Dealer of the occurrence of any of the foregoing events (including the number of Shares subject to clause (A), (B) or (C) and the corresponding number of Shares or Restricted Shares, as the case may be, to be delivered) and promptly
deliver such Shares or Restricted Shares, as the case may be, thereafter. 

  

	 	(q)	 Right to Extend. Dealer may postpone, in whole or in part, any Expiration Date or any other date of valuation or delivery with respect
to some or all of the relevant Warrants (in which event the Calculation Agent shall make appropriate adjustments to the Daily Number of Warrants with respect to one or more Expiration Dates) if Dealer determines, in its commercially reasonable
judgment, that such extension is reasonably necessary or appropriate to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in connection with
its hedging, hedge unwind or settlement activity hereunder in a manner that would, if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related
policies and procedures applicable to Dealer. 

  
 20 

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

  

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

  

	 	(t)	 Early Unwind. In the event the sale of the “Option Securities” (as defined in the Underwriting Agreement) is not consummated
with the Underwriters for any reason, or Company fails to deliver to Dealer opinions of counsel as required pursuant to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium Payment Date, or such later date as agreed upon
by the parties (the Premium Payment Date or such later date the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”), on the Early Unwind Date and (i) the Transaction and all
of the respective rights and obligations of Dealer and Company under the Transaction shall be cancelled and terminated and (ii) each party shall be released and discharged by the other party from and agrees not to make any claim against the
other party with respect to any obligations or liabilities of the other party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date; provided that, other than in the case of an
Early Unwind due to a breach of the Underwriting Agreement by the Underwriters, Company shall pay to Dealer an amount in cash equal to the aggregate amount of costs and expenses relating to the unwinding of Dealer’s hedging activities in
respect of the Transaction (including market losses incurred in reselling any Shares purchased by Dealer or its affiliates in connection with such hedging activities), such unwinding to be conducted in a manner consistent with Dealer’s standard
practice or, at the election of Company, deliver to Dealer Shares with a value equal to such amount, as determined by the Calculation Agent, in which event the parties shall enter into customary and commercially reasonable documentation relating to
the registered or exempt resale of such Shares, taking into account the size of such equity placement. Each of Dealer and Company represent and acknowledge to the other that, subject to the proviso included in this Section 9(t), upon an Early
Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged. 

  

	 	(u)	 Payment by Dealer. In the event that (i) an Early Termination Date occurs or is designated with respect to the Transaction as a
result of a Termination Event or an Event of Default (other than an Event of Default arising under Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Company an amount calculated under Section 6(e) of the
Agreement, or (ii) Dealer owes to Company, an amount calculated under Section 12.7 or Section 12.8 of the Equity Definitions, such amount shall be deemed to be zero. 

 

	 	(v)	 Illegality. The parties agree that for the avoidance of doubt, for purposes of Section 5(b)(i) of the Agreement, “any
applicable law” shall include the Dodd-Frank Act, any rules and regulations promulgated thereunder and any similar law or regulation, without regard to Section 739 of the Dodd-Frank Act or any similar legal certainty provision in any
legislation enacted, or rule or regulation promulgated, on or after the Trade Date, and the consequences specified in the Agreement, including without limitation, the consequences specified in Section 6 of the Agreement, shall apply to any
Illegality arising from such act, rule or regulation. 

  
 21 

	 	(w)	 Available Shares. Company shall not take any action to decrease the number of Available Shares below the Warrant Shares.
“Available Shares” means the number of authorized but unissued Shares of the Company that are not reserved for future issuance in connection with transactions in the Shares (other than the Transaction) on the date of the
determination of the Warrant Shares. 

  

	 	(x)	 Jurisdiction. THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIMS OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

  
 22 

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

					
	Very truly yours,
		
		 	Goldman, Sachs & Co.
			
		 	By:	 	 /s/ Daniela Bisalti

		 	Name:	 	Daniela Bisalti
		 	Name:	 	Vice President

 Accepted and confirmed 
 as of the Trade Date: 
  

			
	Volcano Corporation
		
	 By:
	 	 /s/ Darin Lippoldt

	 Authorized Signatory

	 Name:
	 	 Darin Lippoldt
 SVP & GC

 [Signature Page to the Additional Warrant Confirmation]Exhibit 10.5

 

EMPLOYMENT
AGREEMENT

This
Employment Agreement ("Agreement") is made and entered into this as of this 8th day of December, 2012 (the "Effective
Date"), by and between Smack Sportswear, a Nevada corporation, with a principal place of business located at 1765 Oak
Street, Torrance, CA 90501, ("Employer") and Charles, an ("Employee").

Employer
hereby employs Employee, and Employee agrees to work for Employer, under the following terms and conditions:

1.   
AGREEMENT TO EMPLOY AND BE EMPLOYED

Employer
hereby employs Employee in the position of President, and Employee hereby accepts and agrees to such employment.

2.   
EMPLOYEE WARRANTIES

Employee
warrants and represents that Employee has the ability to enter into this Agreement and the legal right to work in the United States;
that Employee's entering into and performance under this Agreement will not violate Employee's agreement with any third party;
and that there are no restrictions or obligations to any third party which may restrict Employee's performance of duties under
this Agreement. Employee has not provided, or promised to provide, Employer with any confidential information, trade secrets, or
property of any former or current employer of Employee.

3.   
DESCRIPTION OF EMPLOYEE'S DUTIES

Subject
to the supervision and pursuant to the orders, advice, and direction of Employer, Employee shall perform such duties as are customarily
performed by one holding such position in other businesses or enterprises of the same or similar nature as that engaged in by Employer.

Employee
shall report to the Board of Directors of the Employer (the "Board") in connection his employment hereunder.

Employee
has been appointed Chief Financial Officer of the Company and serves at the pleasure of the Board.

Employee
will generally report to and work at the following location: 1765 Oak Street, Torrance, CA 90501

 

4.                 
MANNER OF PERFORMANCE OF EMPLOYEE'S DUTIES

Employee
shall at all times faithfully, industriously, and to the best of Employee's ability, experience, and talent, perform all duties
that may be required of and from Employee pursuant to the express and implicit terms hereof, to the reasonable satisfaction of
Employer. Such duties shall be rendered at the above mentioned premises and at such other place or places as Employer shall in
good faith require or as the interests, needs, business, and opportunities of Employer shall require or make advisable, which may
include domestic and international travel. Employee shall comply with all stated standards of performance, policies, rules, and
regulations of Employer. Employee shall also comply with such future Employer policies, rules, regulations, performance standards,
and manuals as may be published or amended by Employer from time to time, including without limitation, any employee handbook or
similar materials that have been provided to Employee.

5.                 
DURATION OF EMPLOYMENT

The term
("Term") of employment shall be three (3) years, commencing on January 1, 2013 and terminating December 31, 2015, subject,
however, to prior termination as provided in Sections 9, 10, and 11 of this Agreement or a written, mutually agreeable extension
of the term of employment.

6. SALARY AND BENEFITS;
REIMBURSEMENT; ANNUAL BONUS;

(a)     
Employer shall pay Employee, and Employee agrees to accept from Employer, as partial payment
for Employee's services rendered hereunder, salary compensation paid at the following rate over the course of the Term of employment:
$120,000.00 annually, payable on a monthly basis for each monthly period in which applicable services have been rendered. Unless
otherwise agreed to by Employer in writing or as stated herein, with the exception of 3,000,000 incentive shares, the Employee
will receive no cash or non-cash employee benefits in connection with the employment and pursuant to this Agreement.

(b)     
In addition to the foregoing, Employer will reimburse Employee for any and all necessary,
customary, and usual expenses incurred on behalf of Employer pursuant to Employer's policies.

(c)     
During the employment Term, Employee will be eligible to receive bonus payments, or other
incentives based on the performance and growth of the company as reasonably approved by Employer's Board
of Directors.

(e)     
Subject to the provisions below of Section 6(e), Employer shall make available to Employee
the same insurance benefits made available by the Employer to other employees, if any (e.g., medical, dental, vision, life, accidental
death and dismemberment, short-term disability and long-term disability plans). To the extent that key man life insurance coverage

2 of 8

     

     

    

 

can be
obtained by the Employer under commercially reasonable terms and conditions insuring the life of the Employee for the primary benefit
of the Employer, as approved by the Board ("Key-Man Insurance Coverage"), Employer agrees: (i) to pay the insurance premiums
for such Key-Man Insurance Coverage; and (ii) to assign approximately 25% of the death benefit payout for such Key-Man Insurance
Coverage to Employee's designated beneficiary, minus a reimbursement payment paid to the Employer from said death benefit proceeds
in an amount equal to 25% of the amount of out-of-pocket premium payment expenses already paid by Employer with respect to said
insurance policy.

(f)      
Employee acknowledges that as of the Effective Date Employer's business is in its initial
stages of establishment and setup, and that as a result the salary set forth in Section 6(a), above may not be paid on a monthly
basis. To the extent that said salary obligation is not paid in full on a monthly basis as set forth in Section 6(a), any such
unpaid amounts will accrue and shall be paid at later date during the Term. Employee shall determine when the salary as referenced
above in Section 6(a), including all accrued but unpaid salary, will be paid based upon the financial ability of the Employer to
make such payments and shall make such determination in the best interests of Employer. Notwithstanding the foregoing, if any other
member of Employer's executive management team receives all or a portion of their respective salaries, Employee shall be entitled,
at minimum, to receive payment of the same percentage of his salary as such other members of Employer's executive management team.

 

(g)     
Incentive Stock to be issued to the Employee will vest over the Employee’s period of
employment as follows:

  

	Employment Period Completed	Incentive Stock Vested
	 	 
	June 30, 2013	500,000 common shares
	 	 
	December 31, 2013	500,000 common shares
	 	 
	June 30, 2014	500,000 common shares
	 	 
	December 31, 2014	500,000 common shares
	 	 
	June 30, 2015	500,000 common shares
	 	 
	December 31, 2015	500,000 common shares

 

 

 

 

 

Page 3 of 8

     

     

    

 

 

7.   
CONFIDENTIALITY

The
parties hereto understand and agree that the terms and provisions of that certain Mutual Confidentiality Agreement dated as of
even date herewith and attached hereto as Exhibit I (the "Confidentiality Agreement") are hereby incorporated
herein by reference. The parties also understand and agree that: (i) the terms and provisions of this Agreement and any attachments
to this Agreement, but not the existence of this Agreement, shall be deemed "Confidential Information" for purposes of,
and as defined under, the Confidentiality Agreement, and (ii) this Agreement constitutes a "Employment Agreement" for
purposes of, and as contemplated by, the Confidentiality Agreement.

8.     
NON-SOLICITATION

As
a material inducement for the Employer to enter into this Agreement, Employee agrees that during the term of this Agreement, and
for a period of two (2) years thereafter, Employee will not directly or indirectly, individually, in partnership or in conjunction
with any person, association or company, in any capacity whatsoever: (a) solicit, induce, or attempt to influence, directly or
indirectly, any supplier, customer, or prospective supplier or customer (including, without limitation, those Employer clients/customers
sold or serviced by you during the term of this Agreement) of Employer to reduce, curtail or discontinue business with the Employer,
(b) employ or retain or attempt to employ or retain, directly or indirectly, any person who at that time is, or within twelve (12)
months prior thereto had been, employed or retained by Employer, or (c) solicit, induce or attempt to influence, directly or indirectly,
any employee or independent contractor of the Employer to reduce, curtail or terminate his, her or its employment or independent
contractor relationship with the Employer. In addition, as a material inducement for the Employer to enter into this Agreement,
Employee agrees that during the term of this Agreement, Employee shall not engage in any business activities that directly compete
with the business of the Employer.

9.                 
OPTION TO TERMINATE ON PERMANENT DISABILITY OF EMPLOYEE

Notwithstanding
anything in this Agreement to the contrary, and subject to any limitations imposed by applicable state or federal law, the parties
each have the option to terminate this Agreement in the event that during the Term Employee shall become permanently disabled to
the extent Employee is unable to perform the essential functions of Employee's duties even with reasonable accommodation. Upon
such notice pursuant to this Section 9, this Agreement shall be terminated, effective on the last day of the month in which the
notice is mailed to the other party, with the same force and effect as if such last day of the month were the date originally set
forth as the termination date set forth in Section 5.

10.             
DISCONTINUANCE OF BUSINESS AS TERMINATION OF EMPLOYMENT

In
the event that Employer shall discontinue business operations, then this Agreement shall terminate as of the last day of the month
in which such business operations cease with the same force and effect as if such last day of the month were originally set forth
as the termination date hereof, except that Employer shall pay all accrued and unpaid salary payments described in Section 6, above.
Business operations shall be deemed to mean regular business operations, excluding the wind-up, sale, or transfer of business operations,
or the preparation for the same.

11.
TERMINATION

(a)   
Employer may terminate this Agreement by giving fifteen (15) days' written notice to Employee
upon the occurrence of any the following events (a "Termination For Cause"): for just cause based upon material nonperformance
of duties, gross negligence, gross insubordination or fraud by Employee.

(b)  
This Agreement shall also terminate immediately upon the death of
Employee.

(d)  
In addition, this Agreement may be terminated by either party for any reason or for no reason
through transmittal of sixty (60) days' prior written notice of termination to the other party (such termination, a "Termination
For Convenience").The parties understand and agree that in connection with any termination of this Agreement, Employee shall
lose any future rights under the Agreement to be paid any compensation earned pursuant to Section 6, but shall be paid all compensation
owed through the date of termination, except in the event of a Termination For Cause by Employer pursuant to Section 11(a).

(e)     
Except as set forth above in Section 11(d), in the event of any termination of this Agreement,
including without limitation in the event of a Termination For Convenience by Employer, within thirty (30) days of any termination
of this Agreement, Employee shall be paid any compensation earned prior to termination pursuant to Section 6(a) and shall be paid
any expense reimbursements pursuant to Section 6(b).

(e) Subject to
the above provisions of Section 11, termination of this Agreement shall not affect any of the rights or obligations of either party
which exist as of the date of termination or expiration, and which rights and obligations shall, by their nature, survive such
termination or expiration.

12.    
LITIGATION ASSISTANCE

Employee shall,
upon reasonable notice, furnish such information and proper assistance to Employer as it may reasonably require in connection with
any litigation, arbitration, mediation, or investigation in which it is, or may become, a party, either during or after Employee's
employment with Employer. Employer shall prepay or timely reimburse Employee's reasonable expenses required or incurred in providing
such assistance.

13.    
ENTIRE AGREEMENT

This Agreement,
together with any documents or agreements referred to herein and any exhibits or other attachments hereto, contains the sole and
entire agreement between the Parties with regard to Employee's employment, and supersedes any and all other agreements between
them relating to the same subject matter. The parties acknowledge and agree that neither of them has made any representation with
respect to the subject matter of this Agreement or any representations inducing the execution and delivery hereof except such representations
as are specifically set forth herein, and each party acknowledges that he or it has relied on his or its own judgment in entering
into the Agreement, and has been afforded the opportunity to consult with counsel of his or its choosing. The parties further acknowledge
that any statements or representations that may have previously been made by either of them to the other are void and of no effect
and that neither of them has relied thereon in connection with his or its dealings with the other.

14. WAIVER OR
MODIFICATION INEFFECTIVE UNLESS IN WRITING; CONSTRUCTION

No
waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in
writing and duly executed by the party to be charged therewith. Furthermore, no evidence of any waiver or modification shall be
offered or received in evidence in any proceeding, arbitration, or litigation between the parties arising out of or affecting this
Agreement, or the rights or obligations of any party hereunder, unless such waiver or modification is in writing and duly executed.
The provisions of this paragraph may not be waived except as set forth herein. The language used in this Agreement will be deemed
to be the language chosen by parties to express their mutual intent, and no rule of strict construction will be applied against
either party. As context may require, the singular shall mean and include the plural and vice versa, and the masculine shall include
the feminine and vice versa.

15.    
SEVERABILITY

If, for
any reason, any provision of this Agreement is held invalid, it is the intent of the Parties that all other provisions of this
Agreement shall remain in full force and effect.

16.    
ASSIGNMENT

This
Agreement may be assigned by Employer to another employer in conjunction with the sale, merger, reorganization, bankruptcy, or
dissolution of Employer upon written notice to Employee and provided that all other provisions and terms of this Agreement are
honored by the assignee. This Agreement may not be assigned or subcontracted by Employee under any circumstances.

 

     

     

    

 

 

17.    
BINDING EFFECT OF AGREEMENT

This
Agreement and all of Employer's rights hereunder shall be binding on, inure to the benefit of, and be enforceable by Employer and
its legal representatives, successors, and assigns. This Agreement and all of Employee's rights hereunder shall be binding on,
inure to the benefit of, and be enforceable by Employee and his legal representatives.

18.    
ADDITIONAL MISCELLANEOUS

{a)
Notices given under this Agreement must be in writing and sent via email, facsimile, overnight courier, hand delivered, or mailed
by certified or registered mail, to the party at its address set forth at the beginning of this Agreement, or to the e-mail address
or facsimile number provided to the other party in writing from time to time. Either party may change its address by giving notice
of such change to the other party. If notice is made by personal delivery, courier or mail, notice will be deemed made upon delivery.
If notice is made by e-mail or facsimile, notice will be deemed made upon transmission of the e-mail or facsimile. This
Agreement will be governed by and construed in accordance with the laws of the State of California, without giving effect to any
choice or conflict of law provision or rule. Any disputes under this Agreement shall be brought in the state courts and the Federal
courts located in Orange County, California, and the parties hereby consent to the personal jurisdiction and venue of these courts.
Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world. If
any party initiates legal action to enforce its rights under this Agreement, the prevailing party shall be entitled to recover
against the non-prevailing party such attorneys' fees as may be awarded by a court of competent jurisdiction, together with
its costs of suit incurred therein. Employee also acknowledges that the restrictions and covenants set forth in Sections 7 and
8 above, and as set forth in the Confidentiality Agreement are, in view of the nature of the business of the Employer, reasonable
and necessary to protect the legitimate interests of the Employer, that the Employer would not have entered into this Agreement
in the absence of such restrictions, and that any violation by Employee of any provisions of Sections 7 or 8 above, or of the Confidentiality
Agreement, will result in irreparable injury to the Employer. The parties also acknowledge that the remedy at law for any violation
of these restrictions and/or covenants will be inadequate, that with respect to each and every violation or threatened violation
of Sections 7 or 8 above, or of the Confidentiality Agreement, the Employer shall be entitled to seek temporary and permanent injunctive
relief, without the necessity of proving actual damages, that the Employer shall be entitled to seek an equitable accounting of
all earnings, profits, and other benefits arising from any such violation, which rights shall be cumulative of and in addition
to any other rights or remedies to which the Employer may be entitled, and that in the event of any such violation or threatened
violation the Employer shall be entitled to commence an action for temporary and permanent injunctive relief and other equitable
relief in any court of competent jurisdiction. Each and all of the several rights and remedies provided for in this Agreement shall
be construed as being cumulative, no one of them shall be deemed to be exclusive of the others or of any right or remedy allowed
by law or equity, and pursuit of any one remedy shall not be deemed to be an election of such remedy, or a waiver of any other
remedy. Each party represents and warrants that he or it has the right to enter into and deliver this Agreement and to grant the
rights and undertake the duties provided for in this Agreement. This Agreement and the respective rights and obligations of the
parties hereunder shall be binding upon and inure to the benefit of the parties only after the Agreement has been fully executed
and delivered by an authorized representative of the respective parties.

(b)     
Each of the parties acknowledges having fully read and understand this Agreement, and each
has been encouraged to have legal counsel advise them in connection with the execution of this Agreement. Each of the parties understands
and agrees that it/he either has had its/his legal counsel review this Agreement or expressly and knowingly waives its/his right
to have such legal counsel review this Agreement. The subject headings of the sections or paragraphs of this Agreement are included
for purposes of convenience and reference only and shall not be deemed to explain, modify, limit, amplify or aid in the meaning,
construction or interpretation of any of the provisions of this Agreement.

(c)                             
This Agreement may be executed in a number of counterparts, and all
executed counterparts together will constitute one and the same agreement. Any such execution may be of a facsimile copy
hereof, and any signature transmitted to another party by facsimile will be valid and binding.

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the Effective Date.

 

SMACK SPORTSWEAR ("EMPLOYER")

 

/s/ Bill Sigler 

By: Bill Sigler

Title: CEO

 

EMPLOYEE

 

/s/ Charles A. Lesser

Print Name: Charles A. Lesser

 

 

 

 

 

Page 8 of 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}]]