CADENCE DESIGN SYSTEMS INC
EXHIBIT 10.89
<DOCUMENT>
<TYPE>EX-10.89
<SEQUENCE>16
<FILENAME>f25514exv10w89.htm
<DESCRIPTION>EXHIBIT 10.89
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.89</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><IMG src="f25514f2551409.gif" alt="(JPMORGAN LOGO)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">JPMorgan Chase Bank, National Association<BR>
P.O. Box 161<BR>
60 Victoria Embankment<BR>
London EC4Y 0JP<BR>
England

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">December&nbsp;14, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To: Cadence Design Systems, Inc.<BR>
Bldg. 5, MS 5B1<BR>
2655 Seely Avenue<BR>
San Jose, CA 95134<BR>
Attention: Legal Department<BR>
Telephone No.: (408) 943-1234<BR>
Facsimile No.: (408) 943-0513

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Re: Convertible Note Hedge Transaction
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reference: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2696918
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The purpose of this letter agreement is to confirm the terms and conditions of the Transaction
entered into between JPMorgan Chase Bank, National Association, London Branch <B>(&#147;Bank&#148;)</B>, represented
by J.P. Morgan Securities Inc. (<B>&#147;Agent&#148;</B>), as its agent, and Cadence Design Systems, Inc., a
Delaware corporation <B>(&#147;Counterparty&#148;)</B>, on the Trade Date specified below (the <B>&#147;Transaction&#148;)</B>. This
letter agreement constitutes a &#147;Confirmation&#148; as referred to in the ISDA Master Agreement specified
below. This Confirmation shall replace any previous letter and serve as the final documentation for
the Transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
<B>&#147;Equity Definitions&#148;)</B>, as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms used
herein have the meanings assigned to them in the Offering Memorandum dated December&nbsp;14, 2006, (the
<B>&#147;Offering Memorandum&#148;) </B>relating to the USD 250,000,000 principal amount of Convertible Senior Notes
due December&nbsp;15, 2013 (the <B>&#147;Convertible Notes&#148; </B>and each USD 1,000 principal amount of Convertible
Notes, <B>a &#147;Convertible Note&#148;</B>) issued by Counterparty pursuant to an Indenture to be dated on or
about December&nbsp;19, 2006, between Counterparty and Deutsche Bank Trust Company Americas, as trustee
(the <B>&#147;Indenture&#148;)</B>. In the event of any inconsistency between the terms defined in the Offering
Memorandum and this Confirmation, the Confirmation shall govern. For the avoidance of doubt,
references herein to sections of the Indenture are based on the draft of the Indenture most
recently reviewed by the parties at the time of execution of this Confirmation. If any relevant
sections of the Indenture are changed, added or renumbered following execution of this
Confirmation, the parties will amend this Confirmation in good faith to preserve the economic
intent of the parties. The Transaction is subject to early unwind if the closing of the Convertible
Notes is not consummated for any reason, as set forth below in Section&nbsp;9(g).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#146; entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>JPMorgan Chase Bank, National Association<BR>
Organised under the laws of the United States as a National Banking Association.<BR>
Main Office 1111 Polaris Parkway, Columbus, Ohio 43271<BR>
Registered as a branch in England &#038; Wales branch No.&nbsp;BR000746. Registered<BR>
Branch Office 125 London Wall, London EC2Y 5AJ<BR>
Authorised and regulated by the Financial Services Authority</B>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. This Confirmation evidences a complete and binding agreement between Bank and Counterparty
as
to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form
a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the
<B>&#147;Agreement&#148;)</B>
as if Bank and Counterparty 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) 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. The terms of the particular Transaction to which this Confirmation relates are as
follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">General Terms:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trade Date:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">December&nbsp;14, 2006</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Option Style:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Modified American, as described in the &#147;Exercise and
Valuation&#148; provisions set forth below.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Option Type:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Call</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Buyer:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Counterparty</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Seller:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Bank</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shares:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The common stock of Counterparty, par value USD 0.01
per Share (Exchange symbol &#147;CDNS&#148;)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number of Options:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The number of Convertible Notes issued by
Counterparty on the closing date for the initial
issuance of the Convertible Notes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Option Entitlement:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">As of any date, a number equal to the Conversion Rate as
of such date (as defined in the Indenture, but
without regard to any adjustments to the Conversion
Rate pursuant to Section&nbsp;13.01(e) or Section&nbsp;13.03(g)
of the Indenture) for each Convertible Note.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number of Shares:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The product of the Number of Options, the Option
Entitlement and the Applicable Percentage.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Applicable Percentage:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;25%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Strike Price:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">USD 21.15</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Premium:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">USD 16,912,500</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Premium Payment Date:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">December&nbsp;19, 2006 or such later date as agreed upon by
the parties.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exchange:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">NASDAQ Global Select Market.</TD>
</TR>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Related Exchange(s):
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The principal exchange(s) for options contracts or futures
contracts, if any, with respect to the Shares</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Exercise and Valuation:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercise Period:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The period from and excluding the Trade Date to and
including the Final Expiration Date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercise Dates:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notwithstanding the Equity Definitions, each &#147;Conversion
Date&#148; as defined in the Indenture occurring during the
Exercise Period for Convertible Notes other than
Convertible Notes with respect to which Counterparty
makes the direction described in Section&nbsp;13.10 of the
Indenture that are accepted by the financial
institution designated by Counterparty in accordance
with Section&nbsp;13.10 of the Indenture<br> (a <B>&#147;Conversion
Date&#148;)</B>.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exercisable Options:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">In respect of each Exercise Date a number of Options equal
to the number of Convertible Notes properly
surrendered to Counterparty for conversion in respect
of the relevant Conversion Date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expiration Time:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">At the close of trading of the regular trading session on
the Exchange</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expiration Date:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Each Exercise Date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Final Expiration Date:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The earlier of (x)&nbsp;the last day on which any Convertible
Notes remain outstanding and (y)&nbsp;December&nbsp;15, 2013.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Automatic Exercise:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notwithstanding the Equity Definitions, on each
Exercise Date, the number of Options related to
such Exercise Date shall be automatically
exercised at the Expiration Time on such Exercise
Date if an effective notice of exercise, if
required, is given in accordance with the
provision immediately below.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Exercise:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notwithstanding anything to the contrary in the Equity
Definitions, in order to exercise any Options,
Counterparty must notify Bank in writing prior to
5:00 PM, New York City time, on the Scheduled
Trading Day prior to the first Exchange Business
Day of the &#147;Observation Period&#148;, as defined in the
Indenture, relating to the Convertible Notes
converted on the relevant Exercise Date (the
<B>&#147;Notice Deadline&#148;) </B>of (i)&nbsp;the number of Options
being exercised on such Exercise Date, (ii)&nbsp;the
scheduled settlement date under the Indenture for
the Convertible Notes converted on such Exercise
Date and (iii)&nbsp;the first day of the relevant
&#147;Observation Period&#148;; <I>provided </I>that,
notwithstanding the foregoing, such notice (and the
related Automatic Exercise of Options) shall be
effective if given after the Notice Deadline but
prior to 5:00 PM New York City</TD>
</TR>
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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">time, on the fifth Exchange Business Day of
such &#147;Observation Period&#148;, in which event the
Calculation Agent shall have the right to adjust the
Net Share Settlement Obligation (as defined below)
as appropriate to reflect the additional costs
(including, but not limited to, hedging mismatches
and market losses) and reasonable expenses incurred
by Bank in connection with its hedging activities
(including the unwinding of any hedge position) as a
result of its not having received such notice prior
to the Notice Deadline; <I>provided further </I>that
Counterparty shall not be required to deliver any
such notice of exercise with respect to any Exercise
Date occurring on or after the 23rd scheduled
&#147;Trading Day&#148;, as defined in the Indenture, prior to
December&nbsp;15, 2013.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bank&#146;s Contact Details for</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">purpose of Giving Notice:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">JPMorgan Chase Batik, National Association</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">277 Park Avenue, 11th Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">New York, NY 10172</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Attention: Eric Stefanik</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Title: Operations Analyst</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">EDG Corporate Marketing</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Telephone No.:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(212)&nbsp;622-5814</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Fax:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(212) 622-8534</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Settlement Terms:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Method of Settlement:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Net Share Settlement</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Settlement Date:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">In respect of an Exercise Date, the settlement date for the
Shares to be delivered in respect of the Convertible
Notes converted on such date pursuant to Section
13.02(a) or Section&nbsp;13.02(b) of the Indenture, as
the case may be; <I>provided </I>that the Settlement Date
will not be prior to the date that is one Settlement
Cycle following the final day of the relevant
&#147;Observation Period.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Net Share Settlement:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">In respect of each Exercise Date, Bank will deliver to
Counterparty, on the related Settlement Date, a
number of Shares (the <B>&#147;Net Share Settlement
Obligation&#148;</B>) equal to the product of the (x)&nbsp;the
Applicable Percentage and (y)&nbsp;the aggregate number of
Shares that Counterparty is obligated to deliver to
the holder(s) of the Convertible Note(s) converted on
such Exercise Date pursuant to the terms of the
Indenture as of the Trade Date (<B>&#147;Convertible
Obligation&#148;</B>); <I>provided, however, </I>that such obligation
shall be determined excluding any Shares that
Counterparty is obligated to deliver to holder(s) of
the Convertible Note(s) as a result of any
adjustments to the Conversion Rate pursuant to
Section&nbsp;13.01(e) or Section&nbsp;13.03(g) of the
Indenture.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Convertible Obligation:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">No later than the Exchange Business Day immediately
following the last day of any Observation Period,
Counterparty shall give Bank notice of the final
number of Shares comprising the relevant
Convertible Obligation for the relevant Exercise
Date for, for the Exercise Dates occurring on or
after the 23<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> scheduled &#147;Trading Day&#148;
prior to December&nbsp;15, 2013, the aggregate Number
of Shares comprising the relevant Convertible
Obligation for such Exercise Dates).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Applicable Provisions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The provisions of Sections&nbsp;9.1(c), 9.8, 9.9, 9.10,
and 9.12 of the Equity Definitions will be
applicable to any Net Share Settlement, as if
&#147;Physical Settlement&#148; applied to the Transaction;
and <I>provided </I>that the Representation and Agreement
contained in Section&nbsp;9.11 of the Equity
Definitions shall be modified by excluding any
representations therein relating to restrictions,
obligations, limitations or requirements under
applicable securities laws as a result of the fact
that Buyer is the issuer of the Shares.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Failure to Deliver:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left">3. Additional Terms applicable to the Transaction:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left">&nbsp;&nbsp;&nbsp;Adjustments applicable to the Transaction:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Method of Adjustment:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notwithstanding Section&nbsp;11.2 of the Equity Definitions,
upon the occurrence of any &#147;Adjustment Event&#148; set
forth in Sections&nbsp;13.03(a), (b), (c), (d), (e)&nbsp;and
(f)&nbsp;of the Indenture, the Calculation Agent shall
make a corresponding adjustment, if necessary, to the
terms relevant to the exercise, settlement or payment
of the Transaction, to the extent an analogous
adjustment is made under the Indenture. Immediately
upon the occurrence of any Adjustment Event,
Counterparty shall notify the Calculation Agent of
such Adjustment Event; and once the adjustments to be
made to the terms of the Indenture and the
Convertible Notes in respect of such Adjustment Event
have been determined, Counterparty shall immediately
notify the Calculation Agent in writing of the
details of such adjustments.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left">Extraordinary Events applicable to the Transaction:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Merger Events:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notwithstanding Section&nbsp;12.1(b) of the Equity Definitions,
a &#147;Merger Event&#148; means the occurrence of any event or
condition defined as a &#147;Merger Event&#148; in Section&nbsp;13.05
of the Indenture.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Immediately upon the occurrence of any Merger Event,
Counterparty shall notify the Calculation Agent of
such Merger Event; and once the adjustments to be
made to the terms of the Indenture and the
Convertible Notes in respect</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">of such Merger Event have been determined,
Counterparty shall immediately notify the Calculation
Agent in writing of the details of such adjustments.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Merger
Consideration:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Upon the occurrence of a Merger Event that causes the
Shares to be converted into the right to receive more
than a single type of consideration (determined based
in part upon any form of stockholder election),
Counterparty shall reasonably promptly (but in any
event prior to the Merger Date) notify the
Calculation Agent of the weighted average of the
types and amounts of consideration received by the
holders of Shares entitled to receive cash,
securities or other property or assets with respect
to or in exchange for such Shares in any Merger Event
who affirmatively make such an election.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consequence of Merger Events:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Notwithstanding Section&nbsp;12.2 of the Equity Definitions,
upon the occurrence of a Merger Event, the Calculation
Agent shall make a corresponding adjustment in respect
of any adjustment under the Indenture to any one or
more of the nature of the Shares, the Number of
Options, the Option Entitlement and any other variable
relevant to the exercise, settlement or payment for
the Transaction; <I>provided, however, </I>that such
adjustment shall be made without regard to any
adjustment to the Conversion Rate for the issuance of
additional shares as set forth in Section&nbsp;13.01(e) or
Section&nbsp;13.03(g) of the Indenture.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Nationalization, Insolvency
or Delisting:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Cancellation and Payment (Calculation Agent
Determination); <I>provided </I>that (i)&nbsp;Section
12.6(a)(iii) of the Equity Definitions shall be
amended to delete, in the definition of the term
&#147;Delisting&#148; the parenthetical &#147;(or will cease)&#148; and
(ii)&nbsp;in addition to the provisions of Section
12.6(a)(iii) of the Equity Definitions, it shall also
constitute a Delisting if the Exchange is located in
the United States and the Shares are not immediately
re-listed, re-traded or re-quoted on any of the New
York Stock Exchange, the American Stock Exchange, The
NASDAQ Global Select Market or the NASDAQ Global
Market (or their respective successors); if the
Shares are immediately re-listed, re-traded or
re-quoted on any such exchange or quotation system,
such exchange or quotation system shall thereafter be
deemed to be the Exchange and the Calculation Agent
shall make any adjustments it deems necessary to the
terms of the Transaction, as if Modified Calculation
Agent Adjustment were applicable to such event.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Additional Disruption Events:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:30px; text-indent:-0px">(a)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change in Law:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Applicable</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b) Insolvency Filing:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Applicable; <I>provided </I>that Section&nbsp;12.9(b)(i) of the Equity
Definitions shall be amended by adding, immediately
following the word &#147;party&#148; in the third line thereof,
the phrase &#147;(or, upon the occurrence of an Insolvency
Filing, Bank)&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Determining Party:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">For all applicable Additional Disruption Events, Bank</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Reliance:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreements and
Acknowledgments Regarding
Hedging Activities:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Additional<BR>
Acknowledgments:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">

    <TD align="left" valign="top" colspan="3">Additional Termination
Events:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">If any event of default under the terms of the Convertible
Notes, as set forth in Section&nbsp;5.01 of the Indenture,
shall occur with respect to Counterparty, then such
event shall constitute an Additional Termination
Event applicable to the Transaction with respect to
which Counterparty shall be deemed to be the sole
Affected Party and the Transaction shall be the sole
Affected Transaction.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">If any provision of the Indenture or the Convertible
Notes is amended, modified, supplemented or waived
without the written consent of Bank, Counterparty
shall provide Bank and the Calculation Agent with
notice thereof on or prior to the effective date
thereof and, if the Calculation Agent determines that
such amendment, modification, supplement or waiver
has a material effect on the Transaction or Bank&#146;s
ability to hedge all or a portion <B>(&#147;Affected
Portion&#148;) </B>of the Transaction, then such event (an
<B>&#147;Amendment Event&#148;) </B>shall constitute an Additional
Termination Event with respect to which Counterparty
shall be deemed to be the sole Affected Party and the
Transaction (or the Affected Portion thereof) shall
be the sole Affected Transaction. For the avoidance
of doubt, an election by Counterparty to increase the
conversion rate pursuant to Section&nbsp;13.01(e) or
Section&nbsp;13.03(g) of the Indenture shall not
constitute an Amendment Event.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">If any Convertible Notes are repurchased (whether in
connection with a put of Convertible Notes by holders
thereof pursuant to the terms of the Indenture as a
result of a fundamental change, howsoever defined, or
for any other reason) by Counterparty or any of its
subsidiaries, or if Counterparty gives notice to Bank
that it intends to repurchase any Convertible Notes,
then Counterparty may notify Bank that it wishes to
designate an Early Termination Date with respect to
the portion of the Transaction relating</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">to the number of Convertible Notes that cease
to be outstanding in connection with or as a result of
such repurchase and the parties shall negotiate in
good faith and in a commercially reasonable manner the
timing, pricing and other terms of such designation.
For the avoidance of doubt, no such designation shall
be made if, after such negotiation, the parties cannot
agree on the terms of such designation.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Credit Support Provider:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Inapplicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Credit Support Document:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Inapplicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">4. Calculation Agent:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Bank. The Calculation Agent shall, upon request by
either party, provide a written explanation of any
calculation or adjustment made by it hereunder,
including, where applicable, a description of the
methodology and data applied.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;Account Details:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Account for payments to Counterparty:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Account for payments to Counterparty:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Cadence Design Systems, Inc.<BR>
Account &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;<BR>
Wells Fargo Bank<BR>
550 California Street &#151; 10th Floor<BR>
San Francisco CA 94104<BR>
ABA# &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Account for delivery of Shares to Counterparty:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Mellon Investor Services <BR>
235 Montgomery Street, 23rd Floor<BR>
San Francisco, CA 94104<BR>
Cadence Design Systems Book Memo Treasury Reserve Account<BR>
&nbsp;&nbsp;Comment: When you are ready to deliver Shares contact Cadence FIRST.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Account for payments to Bank:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">JPMorgan Chase Bank, National Association, New York<BR>
ABA: &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;<BR>
Favour: JPMorgan Chase Bank, National Association - London<BR>
A/C: &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Account for delivery of Shares from Bank:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">&nbsp;&nbsp;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6. Offices:
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Office of Counterparty for the Transaction is: Inapplicable. Counterparty is not a
Multibranch Parry.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Office of Bank for the Transaction is: New York, Bank is a Multibranch Party.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7. Notices: For purposes of this Confirmation:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Address for notices or communications to Counterparty:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Cadence Design Systems, Inc.<BR>
2655 Seely Avenue, Building 5<BR>
San Jose, California 95134<BR>
Fax: (408)&nbsp;944-6855<BR>
Attention: General Counsel
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Address for notices or communications to Bank:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">JPMorgan Chase Bank, National Association<BR>
277 Park Avenue, 11th Floor<BR>
New York, NY 10172<BR>
Attention: Eric Stefanik<BR>
Title: Operations Analyst<BR>
EDG Corporate Marketing<BR>
Telephone No.: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (212)&nbsp;622-5814<BR>
Fax: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (212)&nbsp;622-8534
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. Representations and Warranties of Counterparty
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The representations and warranties of Counterparty set forth in Section&nbsp;1 of the Purchase
Agreement dated as of the Trade Date among Counterparty, Merrill Lynch, Pierce, Fenner &#038; Smith
Incorporated, Morgan Stanley &#038; Co. Incorporated, J.P. Morgan Securities Inc. and Deutsche Bank
Securities Inc. (the <B>&#147;Purchase Agreement&#148;</B>) are true and correct and are hereby deemed to be
repeated to Bank as if set forth herein. Counterparty hereby further represents and warrants to
Bank that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty 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
Counterparty&#146;s part; and this Confirmation has been duly and validly executed and
delivered by Counterparty and constitutes its valid and binding obligation,
enforceable
against Counterparty in accordance with its terms, subject to applicable
bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws
affecting creditors&#146; 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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither the execution and delivery of this Confirmation nor the
incurrence or
performance of obligations of Counterparty hereunder will conflict with or result
in a
breach of the certificate of incorporation or by-laws (or any equivalent documents)
of
Counterparty, or any applicable law or regulation, or any order, writ, injunction
or decree
of any court or governmental authority or agency or any agreement or instrument to
which Counterparty or any of its subsidiaries is a party or by which Counterparty
or any
of its subsidiaries is bound or to which Counterparty or any of its subsidiaries is
subject.
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>or constitute a default under, or result in the creation of any lien under, any such
agreement or instrument, or breach or constitute a default under any agreements and
contracts of Counterparty or its significant subsidiaries filed as exhibits to
Counterparty&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2005,
incorporated by reference in the Offering Memorandum, as updated by any subsequent
filings.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No consent, approval, authorization, or order of, or filing with, any governmental agency
or body or any court is required in connection with the execution, delivery or
performance by Counterparty of this Confirmation, except such as have been obtained or
made and such as may be required under the Securities Act of 1933, as amended (the
<B>&#147;Securities Act&#148;</B>) or state securities laws.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty is not, and after giving effect to the transactions contemplated hereby will
not be, an &#147;investment company&#148; as such term is defined in the Investment Company Act
of 1940, as amended.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty is an &#147;eligible contract participant&#148; (as such term is defined in Section
1a(12) of the Commodity Exchange Act, as amended (the <B>&#147;CEA&#148;</B>) because one or more
of the following is true:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty is a corporation, partnership, proprietorship, organization, trust or other
entity and:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty has total assets in excess of USD 10,000,000;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the obligations of Counterparty hereunder are guaranteed, or
otherwise
supported by a letter of credit or keepwell, support or other agreement, by an
entity of the type described in Section 1a(12)(A)(i) through (iv),
1a(12)(A)(v)(I),
1a(12)(A)(vii) or 1a(12)(C) of the CEA; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty has a net worth in excess of USD 1,000,000 and has entered into
this Agreement in connection with the conduct of Counterparty&#146;s business or to
manage the risk associated with an asset or liability owned or incurred or
reasonably likely to be owned or incurred by Counterparty in the conduct of
Counterparty&#146;s business.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the Trade Date, (A)&nbsp;none of Counterparty and its officers and directors is aware of
any material nonpublic information regarding Counterparty or the Shares and (B)&nbsp;all
reports and other documents filed by Counterparty with the Securities and Exchange
Commission pursuant to the Exchange Act when considered as a whole (with the more
recent such reports and documents deemed to amend inconsistent statements contained in
any earlier such reports and documents), do not contain any untrue statement of a
material fact or any omission of a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances in which they were
made, not misleading.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without limiting the generality of Section&nbsp;3(a)(iii) of the Agreement, the Transaction will
not violate Rule&nbsp;13e-1 or Rule&nbsp;13e-4 under the Exchange Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty is an &#147;accredited investor&#148; (as such term is defined in Section
2(a)(15)(ii) of the Securities Act).</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty&#146;s financial condition is such that it has no need for liquidity with
respect to
its investment in the Transaction and no need to dispose of any portion thereof to
satisfy any existing or contemplated undertaking or indebtedness.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the Trade Date (A)&nbsp;the assets of Counterparty at their fair valuation exceed the
liabilities of Counterparty, including contingent liabilities, (B)&nbsp;the capital of
Counterparty is adequate to conduct the business of Counterparty and (C)
Counterparty has the ability to pay its debts and obligations as such debts mature
and does not intend to, or does not believe that it will, incur debt beyond its
ability to pay as such debts mature.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty&#146;s investments in and liabilities in respect of the Transaction,
which it understands are not readily marketable, are not disproportionate to its net
worth, and it is able to bear any loss in connection with the Transaction, including
the loss of its entire investment in the Transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty hereby agrees and acknowledges that the Transaction has not been
registered with the Securities and Exchange Commission or any state securities
commission and that the Options are being written by Bank to Counterparty in
reliance upon exemptions from any such registration requirements. Counterparty
acknowledges that all Options acquired from Bank will be acquired for investment
purposes only and not for the purpose of resale or other transfer except in
compliance with the requirements of the Securities Act. Counterparty will not sell
or otherwise transfer any Option or any interest therein except in compliance with
the requirements of the Securities Act and any subsequent offer or sale of the
Options will be solely for Counterparty&#146;s account and not as part of a
distribution that would be in violation of the Securities Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty understands no obligations of Bank to it hereunder will be
entitled to the benefit of deposit insurance and that such obligations will not be
guaranteed by any affiliate of Bank or any governmental agency.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty is capable of assessing the merits of and understanding (on its
own behalf or through independent professional advice), and understands and accepts,
the terms, conditions and risks of the Transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without limiting the generality of Section&nbsp;13.1 of the Equity Definitions,
Counterparty acknowledges that Bank is not making any representations or warranties
with respect to the treatment of the Transaction under FASB Statements 128, 133, as
amended, 149 or 150, EITF Issue No.&nbsp;00-19, Issue No.&nbsp;01-6 or Issue No.&nbsp;03-6 (or any
successor issue statements) or under FASB&#146;s Liabilities &#038; Equity Project.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Counterparty is not on the date hereof engaged in a distribution, as such
term is used in Regulation&nbsp;M under the Exchange Act such distribution, a Regulation&nbsp;M
Distribution, of any securities of Counterparty, other than distributions meeting the
requirements of the exception set forth in Rules&nbsp;101(b)(10) and 102(b)(7) of
Regulation&nbsp;M. Counterparty shall not, until the second Exchange Business Day
immediately following the Trade Date, engage in any Regulation&nbsp;M Distribution.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">9. Other Provisions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Opinions.</U> Counterparty shall deliver to Bank an opinion of counsel, dated
as of the Closing Date (as defined in the Purchase Agreement), with respect to the
matters set forth in Sections 8(a) through (d)&nbsp;of this Confirmation.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Repurchase Notices.</U> Counterparty shall, on any day on which Counterparty
effects any
repurchase of Shares, promptly give Bank a written notice of such repurchase (a
<B>&#147;Repurchase Notice&#148;</B>) on such day if, following such repurchase, the Options Equity
Percentage as determined on such day is (i)&nbsp;greater than 6% and (ii)&nbsp;greater by 0.5% than
the Options Equity Percentage included in the immediately preceding Repurchase Notice
(or, in the case of the first such Repurchase Notice, greater than the Options Equity
Percentage as of the date hereof). The &#147;Options Equity Percentage&#148; as of any day is the
fraction (A)&nbsp;the numerator of which is the sum of (A)&nbsp;the Number of Shares hereunder
and (B)&nbsp;the Number of Shares for the Convertible Note Hedge Transaction between
Counterparty and Bank relating to the USD 250,000,000 principal amount of Convertible
Senior Notes due December&nbsp;15, 2011 (the <B>&#147;Aggregate Transaction Amount&#148;) </B>and (B)
the denominator of which is the number of Shares outstanding on such day. Counterparty
agrees to indemnify and hold harmless Bank and its affiliates and their respective
officers, directors, employees, affiliates, advisors, agents and controlling persons (each,
an <B>&#147;Indemnified Person&#148;) </B>from and against any and all losses (including losses relating
to Bank&#146;s hedging activities as a consequence of becoming, or of the risk of becoming, a
Section&nbsp;16 &#147;insider&#148;, 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&#146;s fees), joint or several, which an Indemnified Person may
become subject to, as a result of Counterparty&#146;s failure to provide Bank with a
Repurchase Notice on the day and in the manner specified in this Section&nbsp;9(b), and to
reimburse, within 30&nbsp;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 Counterparty in
writing, and Counterparty, upon request of the Indemnified Person, shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified Person
and any others Counterparty may designate in such proceeding and shall pay the fees and
expenses of such counsel related to such proceeding. Counterparty shall not be liable for
any settlement of any proceeding effected without its written consent, but if settled with
such consent or if there be a final judgment for the plaintiff, Counterparty agrees to
indemnify any Indemnified Person from and against any loss or liability by reason of
such settlement or judgment. Counterparty shall not, without the prior written consent of
the Indemnified Person, effect any settlement of any pending or threatened proceeding 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. If the indemnification provided for in this
paragraph (b)&nbsp;is unavailable to an Indemnified Person or insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then Counterparty under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute
to the amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities. The remedies provided for in this paragraph (b)&nbsp;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 (b)&nbsp;shall remain operative and in full force and effect
regardless of the termination of the Transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>No Manipulation.</U> Counterparty is not entering into the Transaction to create actual
or
apparent trading activity in the Shares (or any security convertible into or exchangeable</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 to violate
the Exchange Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Board Authorization.</U> Each of the Transaction and the issuance of the Convertible
Notes
was approved by its board of directors and publicly announced, solely for the purposes
stated in such board resolution and public disclosure and, prior to any exercise of Options
hereunder, Counterparty&#146;s board of directors will have duly authorized any repurchase of
Shares pursuant to the Transaction. Counterparty further represents that there is no
internal policy, whether written or oral, of Counterparty that would prohibit Counterparty
from entering into any aspect of the Transaction, including, but not limited to, the
purchase of Shares to be made pursuant hereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Transfer or Assignment.</U> Neither party may transfer any of its rights or obligations
under
the Transaction without the prior written consent of the non-transferring party; <I>provided</I>
that if, as determined at Bank&#146;s sole discretion, (x)&nbsp;its &#147;beneficial ownership&#148; (within
the
meaning of Section&nbsp;13 of the Exchange Act and rules promulgated thereunder) with
respect to the Shares exceeds 8.5% of Counterparty&#146;s outstanding Shares or (y)&nbsp;the
Aggregate Transaction Amount exceeds 8.5% of Counterparty&#146;s outstanding Shares or
(z)&nbsp;the sum of the Aggregate Transaction Amount, the Number of Shares for the
convertible bond hedge transaction evidenced by the Confirmation dated August&nbsp;11, 2003
between Counterparty and Bank and the Number of Shares for the convertible bond
hedge transaction evidenced by the Confirmation dated August&nbsp;29, 2003 between
Counterparty and Bank (such sum, the <B>&#147;Related Transaction Amount&#148;) </B>exceeds 15% of
Counterparty&#146;s outstanding Shares Bank may transfer or assign a number of Options
sufficient to reduce such &#147;beneficial ownership&#148; to 8.0% or the Aggregate Transaction
Amount to 8.0%, or the Related Transaction Amount to 14.5% as applicable, to any third
party with a rating (or whose guarantor has a rating) for its long term, unsecured and
unsubordinated indebtedness of A- or better by Standard &#038; Poor&#146;s Ratings Services or its
successor (<B>&#147;S&#038;P&#148;</B>), or a3 or better by Moody&#146;s Investors Service <B>(&#147;Moody&#146;s&#148;) </B>or, if
either S&#038;P or Moody&#146;s ceases to rate such debt, at least an equivalent rating or better by
a substitute agency rating mutually agreed by Counterparty and Bank. If, in the sole
discretion of Bank, Bank is unable after its commercially reasonable efforts to effect such
transfer or assignment on pricing terms reasonably acceptable to Bank and within a time
period reasonably acceptable to Bank, Bank may designate any Exchange Business Day
as an Early Termination Date with respect to a portion (the <B>&#147;Terminated Portion&#148;) </B>of
the Transaction, such that its &#147;beneficial ownership&#148; following such partial termination
will be equal to or less than 8.5% or the Aggregate Transaction Amount will be equal to
or less than 8.5%, or the Related Transaction Amount will be equal to or less than 15% as
the case may be. In the event that Bank so designates an Early Termination Date with
respect to a portion of the Transaction, a payment shall be made pursuant to Section&nbsp;6 of
the Agreement as if (i)&nbsp;an Early Termination Date had been designated in respect of a
Transaction having terms identical to the Transaction and a Number of Options equal to
the Terminated Portion, (ii)&nbsp;Counterparty shall be the sole Affected Party with respect to
such partial termination and (iii)&nbsp;such Transaction shall be the only Terminated
Transaction. Notwithstanding any other provision in this Confirmation to the contrary
requiring or allowing the Bank to purchase, sell, receive or deliver any Shares or other
securities to or from Counterparty, the Bank may designate any of its affiliates to
purchase, sell, receive or deliver such Shares or other securities and otherwise to perform
Bank&#146;s obligations in respect of this Transaction and any such designee may assume such
obligations. The Bank shall be discharged of its obligations to Counterparty to the extent
of any such performance.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><u>Staggered Settlement.</u> Bank may, by notice to Counterparty prior to any Settlement Date
(a <B>&#147;Nominal Settlement Date&#148;)</B>, elect to deliver the Shares on two or more dates (each, a
<B>&#147;Staggered Settlement Date&#148;) </B>or at two or more times on the Nominal Settlement Date
as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in such notice, Bank will specify to Counterparty the related
Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement
Date) and how it will allocate the Shares it is required to deliver under &#147;Net
Share Settlement&#148; (above)&nbsp;among the Staggered Settlement Dates; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate number of Shares that Bank will deliver to Counterparty
hereunder
on all such Staggered Settlement Dates and delivery times will equal the number
of Shares that Bank would otherwise be required to deliver on such Nominal
Settlement Date.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><u>Early Unwind.</u> In the event the sale of Convertible Notes is not consummated with the
underwriters for any reason by the close of business in New York on December&nbsp;19, 2006
or such later date as agreed upon by the parties (December&nbsp;19, 2006 or such later date as
agreed upon being the <B>&#147;Early Unwind Date&#148;)</B>, the Transaction shall automatically
terminate (the <B>&#147;Early Unwind&#148;)</B>, on the Early Unwind Date and (i)&nbsp;the Transaction and
all of the respective rights and obligations of Bank and Counterparty under the
Transaction shall be cancelled and terminated and (ii)&nbsp;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; <I>provided </I>that, other than to the extent the Early Unwind Date occurred as a result
of a breach of the Purchase Agreement by Bank or an affiliate thereof, Counterparty shall
reimburse Bank for any costs or expenses (including market losses) relating to the
unwinding of its hedging activities in connection with the Transaction (including any loss
or cost incurred as a result of its terminating, liquidating, obtaining or reestablishing
any
hedge or related trading position). The amount of any such reimbursement shall be
determined by Bank in its sole good faith and commercially reasonable discretion. Bank
shall notify Counterparty of such amount and Counterparty shall pay such amount in
immediately available funds on the Early Unwind Date. Bank and Counterparty
represent and acknowledge to the other that, subject to the proviso included in this
Section, upon an Early Unwind, all obligations with respect to the Transaction shall be
deemed fully and finally discharged.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Disclosure.</U> Effective from the date of commencement of discussions concerning the
Transaction, Counterparty and each of its employees, representatives, or other agents may
disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of the Transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to Counterparty relating to such tax treatment and tax structure.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Setoff.</U> The provisions of Section 2(c) of the Agreement shall not apply to the
Transaction. Each party waives any and all rights it may have to set-off delivery or
payment obligations it owes to the other party under the Transaction against any delivery
or payment obligations owed to it by the other party, whether arising under the
Agreement, under any other agreement between parties hereto, by operation of law or
otherwise.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.</U> If, in respect of the Transaction, an amount is payable by Bank to
Counterparty upon an early termination or cancellation of the Transaction (i)&nbsp;pursuant to
Section&nbsp;12.2, 12.6, 12.7 or 12.9 of the Equity Definitions or &#147;Consequences of Merger
Events&#148; above (except in the event of an Extraordinary Event in which the consideration to
be paid to holders of Shares consists solely of cash) or (ii)&nbsp;pursuant to Section&nbsp;6(d)(ii)
of the Agreement (except in the event of an Event of Default in which Counterparty is the
Defaulting Party or a Termination Event in which Counterparty is the Affected Party, other
than an Event of Default of the type described in Section&nbsp;5(a)(iii), (v), (vi), (vii)&nbsp;or
(viii)&nbsp;of the Agreement or a Termination Event of the type described in Section&nbsp;5(b)(i),
(ii), (iii), (iv), (v)&nbsp;or (vi)&nbsp;of the Agreement, in each case resulting from an event or
events outside Counterparty&#146;s control) (a <B>&#147;Payment Obligation&#148;</B>), Counterparty may, in its
sole discretion, request that Bank satisfy such Payment Obligation by the Share Termination
Alternative (as defined below) and shall give irrevocable telephonic notice to Bank,
confirmed in writing within one Currency Business Day, no later than 12:00&nbsp;p.m. New York
local time on the Merger Date, the Announcement Date or the Early Termination Date, as
applicable; <I>provided </I>that if Counterparty does not validly request that Bank satisfy such
Payment Obligation by the Share Termination Alternative, Bank shall nevertheless have the
right, in its sole discretion, to satisfy its Payment Obligation by the Share Termination
Alternative, notwithstanding Counterparty&#146;s lack of election. In calculating any amounts
under Section 6(e) of the Agreement, notwithstanding anything to the contrary in die
Agreement, (1)&nbsp;separate amounts shall be calculated as set forth in Section 6(e) with
respect to (i)&nbsp;the Transaction and (ii)&nbsp;all other Transactions, and (2)&nbsp;such separate
amounts shall be payable pursuant to Section&nbsp;6(d)(ii) of the Agreement, subject to, in the
case of clause (1)(i), the Share Termination Alternative right hereunder.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Share Termination Alternative:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If applicable, Bank shall deliver to
Counterparty the Share Termination Delivery
Property on the date when the Payment
Obligation would otherwise be due pursuant to
Section&nbsp;12.7 or 12.9 of the Equity
Definitions, this Confirmation or Section
6(d)(ii) and 6(e) of the Agreement, as
applicable (the <B>&#147;Share Termination Payment
Date&#148;</B>), in satisfaction of the Payment
Obligation in the manner reasonably requested
by Counterparty free of payment.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Share Termination<BR>

Delivery Property:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>
A number of Share Termination Delivery
Units, as calculated by the Calculation
Agent, equal to the Payment Obligation
divided by the Share Termination Unit Price.
The Calculation Agent shall adjust the Share
Termination Delivery Property by replacing
any fractional portion of a security therein
with an amount of cash equal to the value of
such fractional security based on the values
used to calculate the Share Termination Unit
Price.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Share Termination Unit Price:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The value to Bank of property contained in
one Share Termination Delivery Unit on the</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">date such Share Termination Delivery Units
are to be delivered as Share Termination
Delivery Property, as determined by the
Calculation Agent in its discretion by
commercially reasonable means and notified by
the Calculation Agent to Bank at the time of
notification of the Payment Obligation.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Share Termination<BR>
Delivery Unit:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>
In the case of a Termination Event, Event of
Default or Delisting, one Share or, in the
case of an Insolvency, Nationalization or
Merger Event, one Share or a unit consisting
of the number or amount of each type of
property received by a holder of one Share
(without consideration of any requirement to
pay cash or other consideration in lieu of
fractional amounts of any securities) in such
Insolvency, Nationalization or Merger Event,
as the case may be. If such Insolvency,
Nationalization or Merger Event involves a
choice of consideration to be received by
holders, such holder shall be deemed to have
elected to receive the maximum possible
amount of cash.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Failure to Deliver:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Applicable</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other applicable<BR>
provisions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>
If Share Termination Alternative is
applicable, the provisions of Sections&nbsp;9.8,
9.9, 9.10, 9.11 and 9.12 of the Equity
Definitions will be applicable, as if
&#147;Physical Settlement&#148; applied to such
cancellation or termination of the
Transaction, except that all references
therein to &#147;Shares&#148; shall be read as
references to &#147;Share Termination Delivery
Units&#148;; and <I>provided </I>that the Representation
and Agreement contained in Section&nbsp;9.11 of
the Equity Definitions shall be modified by
excluding any representations therein
relating to restrictions, obligations,
limitations or requirements under applicable
securities laws as a result of the fact that
Buyer is the issuer of any Share Termination
Delivery Units (or any part thereof).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><I>Securities Contract: Swap Agreement.</I></U> The parties hereto intend for: (a)&nbsp;the Transaction
to be a &#147;securities contract&#148; and a &#147;swap agreement&#148; as defined in the Bankruptcy Code (Title
11 of the United States Code) (the <B>&#147;Bankruptcy Code&#148;</B>), and the parties hereto to be
entitled to the protections afforded by, among other Sections, Sections&nbsp;362(b)(6), 555 and
560 of the Bankruptcy Code; (b)&nbsp;a party&#146;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 &#147;contractual right&#148; as described</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the Bankruptcy Code; (c)&nbsp;any cash, securities or other property provided as
performance assurance, credit support or collateral with respect to the Transaction to
constitute &#147;margin payments&#148; and &#147;transfers&#148; under a &#147;swap agreement&#148; as defined in the
Bankruptcy Code; and (d)&nbsp;all payments for, under or in connection with the Transaction,
all payments for the Shares and the transfer of such Shares to constitute &#147;settlement
payments&#148; and &#147;transfers&#148; under a &#147;swap agreement&#148; as defined in the Bankruptcy Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Governing Law.</U> New York law (without reference to choice of law doctrine).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><u>Waiver of Jury Trial.</u> 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)&nbsp;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)&nbsp;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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Registration.</U> Counterparty hereby agrees that if, in the good faith reasonable
judgment of Bank, the Shares (the <B>&#147;Hedge Shares&#148;</B>) acquired by Bank for the purpose of hedging
its obligations pursuant to the Transaction cannot be sold in the U.S. public market by Bank
without registration under the Securities Act, Counterparty shall, at its election: (i)&nbsp;in
order to allow Bank to sell the Hedge Shares in a registered offering, make available to Bank
an effective registration statement under the Securities Act to cover the resale of such Hedge
Shares and (A)&nbsp;enter into an agreement, in form and substance satisfactory to Bank,
substantially in the form of an underwriting agreement for a registered secondary offering,
(B)&nbsp;provide accountant&#146;s &#147;comfort&#148; letters in customary form for registered offerings of
equity securities, (C)&nbsp;provide disclosure opinions of nationally recognized outside counsel to
Counterparty reasonably acceptable to Bank, (D)&nbsp;provide other customary opinions, certificates
and closing documents customary in form for registered offerings of equity securities and (E)
afford Bank a reasonable opportunity to conduct a &#147;due diligence&#148; investigation with respect
to Counterparty customary in scope for underwritten offerings of equity securities; <I>provided,
however, </I>that if Bank, in its sole reasonable discretion, is not satisfied with access to due
diligence materials, the results of its due diligence investigation, or the procedures and
documentation for the registered offering referred to above, then clause (ii)&nbsp;or clause (iii)
of this Section 9(n) shall apply at the election of Counterparty; (ii)&nbsp;in order to allow Bank
to sell the Hedge Shares in a private placement, enter into a private placement agreement
substantially similar to private placement Underwriting Agreements customary for private
placements of equity securities, in form and substance satisfactory to Bank, including
customary representations, covenants, blue sky and other governmental filings and/or
registrations, indemnities to Bank, due diligence rights (for Bank or any designated buyer of
the Hedge Shares from Bank), opinions and certificates and such other documentation as is
customary for private placements agreements, all reasonably acceptable to Bank (in which case,
the Calculation Agent shall make any adjustments to the terms of the Transaction that are
necessary, in its reasonable judgment, to compensate Bank for any discount from the public
market price of the Shares incurred on the sale of Hedge Shares in a private placement); or
(iii)&nbsp;purchase the Hedge Shares from Bank at the &#147;VWAP Price&#148; (as defined herein) on the
relevant Exchange Business Days, and in the amounts, requested by Bank.
<B>&#147;VWAP Price&#148; </B>means, on any Exchange Business Day, the per Share volume-weighted average
price as displayed under the heading &#147;Bloomberg VWAP&#148; on Bloomberg page &#060;CDNS&#062;.UQ
&#060;equity&#062; AQR (or any successor thereto) in respect of the period from 9:30 a.m. to
4:00 p.m. (New York City time) on such</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exchange Business Day (or if such volume-weighted average price is unavailable, the
market value of one Share on such Exchange Business Day, as determined by the Calculation
Agent using a volume-weighted method).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Quarterly Valuations.</U> Bank hereby agrees, upon request by Counterparty, to cause its
affiliate to provide to the Counterparty, within 5 Exchange Business Days after the end of
the fiscal quarter of the Counterparty during which Counterparty made such request, a
valuation estimate of the fair value of the Transaction as of the Counterparty&#146;s fiscal
quarter end.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Equity Rights.</U> Bank acknowledges and agrees that this Confirmation is not intended to convey
to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty&#146;s bankruptcy.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Role of Agent.</U> Each party agrees and acknowledges that (i)&nbsp;Agent has acted solely as
agent and not as principal with respect to this Transaction and (ii)&nbsp;Agent has no
obligation or liability, by way of guaranty, endorsement or otherwise, in any manner in
respect of this Transaction (including, if applicable, in respect of the settlement
thereof). Each party agrees it will look solely to the other party (or any guarantor in
respect thereof) for performance of such other party&#146;s obligations under this
Transaction.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><IMG src="f25514f2551410.gif" alt="(JPMORGAN LOGO)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this
Confirmation and returning it to EDG Confirmation Group, J.P. Morgan Securities Inc., 277 Park
Avenue, 11th Floor, New York, NY 10172-3401, or by fax to (212) 622 8519.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">Very truly yours,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>J.P. Morgan Securities Inc., as
agent for JPMorgan Chase Bank, National
Association</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David Seaman
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Authorized Signatory</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: David Seaman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accepted and confirmed<BR>
as of the Trade Date:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Cadence Design Systems, Inc.</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William Porter
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Authorized Signatory</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Name: William Porter</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>JPMorgan Chase Bank, National Association<BR>
Organised under the laws of the United States as a National Banking Association.<BR>
Main Office 1111 Polaris Parkway, Columbus, Ohio 43271<BR>
Registered as a branch in England &#038; Wales branch No.&nbsp;BR000746. Registered<BR>
Branch Office 125 London Wall, London EC2Y 5AJ<BR>
Authorised and regulated by the Financial Services Authority</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
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