Exhibit 10.1


 


		MORGAN STANLEY & CO. LLC

1585 BROADWAY

NEW YORK, NY 10036-8293

(212) 761-4000




 


February 18, 2022


 


Fixed Dollar Accelerated
Share Repurchase Transaction


 


	Atlas Air Worldwide Holdings, Inc.

2000 Westchester Avenue Purchase, New York 10577

Attention: Spencer Schwartz, Executive Vice President and Chief Financial Officer
	 




 


Dear Sir/Madam:


 


The purpose of this letter agreement
(this “Confirmation”) is to confirm the terms and conditions of the Transaction entered into between Morgan Stanley
& Co. LLC (“MSCO”) and Atlas Air Worldwide Holdings, Inc. (“Issuer”) on the Trade Date specified
below (the “Transaction”). This confirmation constitutes a “Confirmation” as referred to in the Agreement
specified below.


 


The definitions and provisions
contained in the 2002 ISDA Equity Derivatives Definitions (as published by the International Swaps and Derivatives Association, Inc. (“ISDA”))
(the “Equity Definitions”) are incorporated into this Confirmation. The Transaction is a Share Forward Transaction
for purposes of the Equity Definitions. Any reference to a currency shall have the meaning contained in Section 1.7 of the 2006 ISDA Definitions,
as published by ISDA.


 


1.             This Confirmation evidences a complete and binding agreement between MSCO and Issuer as to the terms of the Transaction to which this
Confirmation relates and shall supersede all prior or contemporaneous written or oral communications with respect thereto. This Confirmation
shall be subject to an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement as if MSCO and Issuer
had executed an agreement in such form without any Schedule but with the elections set forth in this Confirmation.


 


The Transaction shall be the
only transaction under the Agreement. If there exists any ISDA Master Agreement between MSCO and Issuer or any confirmation or other agreement
between MSCO and Issuer pursuant to which an ISDA Master Agreement is deemed to exist between MSCO and Issuer, then, notwithstanding anything
to the contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to which MSCO and Issuer are parties,
the Transaction shall not be considered a transaction under, or otherwise governed by, such existing or deemed to be existing ISDA Master
Agreement.


 


If there is any inconsistency
between the Agreement, this Confirmation and the Equity Definitions, the following will prevail for purposes of the Transaction in the
order of precedence indicated: (i) this Confirmation; (ii) the Equity Definitions; and (iii) the Agreement.


 






     


     


    

 





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


 


GENERAL TERMS:


 


	Trade Date:	As specified in Schedule I
	 	 
	Buyer:	Issuer
	 	 
	Seller:	MSCO
	 	 
	Shares:	Common Stock, par value USD 0.01 per share, of Issuer (Ticker: AAWW)
	 	 
	Forward Price:	A price equal to (A) the greater of (i) the arithmetic mean (not a weighted average, subject to “Market Disruption Event” below) of the 10b-18 VWAP on each Calculation Date during the Calculation Period minus (ii) the Discount and (B) the Floor Price.
	 	 
	Discount:	As specified in Schedule I
	 	 
	Floor Price:	As specified in Schedule I
	 	 
	10b-18 VWAP:	On any Calculation Date, a price per Share equal to the volume-weighted average price of the Rule 10b-18 eligible trades in the Shares for the entirety of such Calculation Date as determined by the Calculation Agent at 4:15 EST on such Calculation Date by reference to the screen entitled “AAWW.Q <Equity> AQR SEC” or any successor page as reported by Bloomberg L.P. or any successor (without regard to pre-open or after-hours trading outside of any regular trading session for such Calculation Date) on such Calculation Date),  or, if the price displayed on such screen is clearly erroneous, as determined on a volume weighted average basis by the Calculation Agent in good faith and in a commercially reasonable manner. 
	 	 
	Calculation Period: 	The period from, and including, the Calculation Period Start Date to, and including, the relevant Valuation Date.
	 	 
	Calculation Period Start Date:	As specified in Schedule I
	 	 
	Calculation Dates: 	As specified in Schedule I
	 	 
	Initial Shares: 	As specified in Schedule I
	 	 
	Initial Share Delivery Date: 	As specified in Schedule
    I. On the Initial Share Delivery Date, Seller shall deliver to Buyer a number of Shares equal to the Initial Shares in accordance
    with Section 9.4 of the Equity Definitions, with the Initial Share Delivery Date being deemed to be a “Settlement Date”
    for purposes of such Section 9.4.
	 	 
	Prepayment: 	Applicable



 






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	Prepayment Amount: 	As specified in Schedule I
	 	 
	Prepayment Date:	As specified in Schedule I
	 	 
	Exchange:	The NASDAQ Global Select Market
	 	 
	Related Exchange:	All Exchanges
	 	 
	Market Disruption Event:	The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “at any time during the one hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be,” starting in the third line thereof.
	 	 
	 	Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.
	 	 
	 	Notwithstanding anything to the contrary in the Equity Definitions, if any Scheduled Trading Day in the  Calculation Period or the Buyer Settlement Valuation Period (each such Scheduled Trading Day, an “Observation Day”) is a Disrupted Day, the Calculation Agent may, in its good faith and commercially reasonable discretion, elect to take one or more of the following actions: (i) determine that such Observation Day is a Disrupted Day in whole, in which case the Calculation Agent shall exclude the 10b-18 VWAP on such Observation Day in determining the Forward Price or Buyer Settlement Price, as applicable, (ii) determine that such Observation Day is a Disrupted Day in part, in which case the Calculation Agent shall (x) determine the 10b-18 VWAP on such Observation Day based on Rule 10b-18 eligible trades in the Shares on such day taking into account the nature and duration of the relevant Market Disruption Event in a commercially reasonable manner and (y) determine the  Forward Price or Buyer Settlement Price, as applicable, in a commercially reasonable manner, using an appropriately weighted average of 10b-18 VWAPs instead of an arithmetic mean, and/or (iii) elect to (x) postpone the Scheduled Valuation Date (in the case of a disrupted Calculation Date) or (y) extend the Buyer Settlement Valuation Period (in the case of a Disrupted Day during the Buyer Settlement Valuation Period) by up to one Scheduled Trading Day for every Observation Day that is a Disrupted Day during the Calculation Period or Buyer Settlement Valuation Period, as applicable.  For the avoidance of doubt, if the Calculation Agent takes the action described in clause (ii) above, then such Disrupted Day shall be an Observation Day for purposes of calculating the Forward Price or Buyer Settlement Price, as applicable.



 






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	 	Any Scheduled Trading Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be a Scheduled Trading Day.  If a closure of the Exchange prior to its normal close of trading is scheduled (x) on any Scheduled Trading Day during the Calculation Period following the date hereof or (y) on any Scheduled Trading Day during the Buyer Settlement Valuation Period after the relevant Buyer Election Date, then such Scheduled Trading Day shall be deemed to be a Disrupted Day in full.
	 	 
	 	If a Disrupted Day occurs (or is deemed to occur) during the Calculation Period or the Buyer Settlement Valuation Period, as the case may be, and each of the five immediately following Scheduled Trading Days is a Disrupted Day (a “Disruption Event”), then the Calculation Agent, in its good faith and commercially reasonable discretion, may (x) deem the day such Disruption Event occurs and each consecutive Disrupted Day thereafter to be an Observation Day that is not a Disrupted Day and determine the 10b-18 VWAP for each such Observation Day on a volume-weighted basis if practicable using its good faith and commercially reasonable estimate of the value of the Shares on such day based on the volume, historical volatility and trading patterns and price of the Shares and such other factors as it deems appropriate and commercially reasonable to take into account or (y) treat such Disruption Event as an Additional Termination Event in respect of the Transaction, with Issuer as the sole Affected Party and the Transaction as the sole Affected Transaction.



 


VALUATION: 




 


	Valuation Date(s):	The earlier of (i) the Scheduled Valuation Date and (ii) any earlier accelerated Valuation Date as a result of MSCO’s election in accordance with the immediately succeeding paragraph.  
	 	 
	 	MSCO shall have the right to accelerate the Valuation Date, for the whole Transaction or only a part thereof equivalent to at least 50% of the Prepayment Amount, or such lesser amount in respect of an acceleration of the entire outstanding portion of the Transaction, to any Scheduled Trading Day that is on or after the Lock-Out Date and prior to the Scheduled Valuation Date by notice (each such notice, an “Acceleration Notice”) to Issuer by 7:00 p.m., New York City time, on the Exchange Business Day immediately following the accelerated Valuation Date (the “Acceleration Date”).  MSCO shall specify in each Acceleration Notice the portion of the Prepayment Amount that is subject to acceleration in accordance with the previous sentence.  If the portion of the Prepayment Amount that is subject to acceleration is less than the full remaining Prepayment Amount, then the Calculation Agent shall in a good faith and commercially reasonable manner make such mechanical or administrative adjustments to the terms of the Transaction as appropriate in order to take into account the occurrence of such Acceleration Date (including cumulative adjustments to take into account all prior Acceleration Dates).



 






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	Scheduled Valuation Date:	As specified in Schedule I, subject to postponement in accordance with “Market Disruption Event” above.
	 	 
	Lock-Out Date:	As specified in Schedule I



 


SETTLEMENT
TERMS:


 


	Physical Settlement:	Applicable. On
    any Valuation Date (including any Acceleration Date, if applicable), the Calculation Agent shall calculate the Settlement Amount for
    the relevant portion of the Transaction. The “Settlement Amount” for the Transaction is a number of
    Shares equal to (a) (i) the Prepayment Amount divided by (ii) the Forward Price minus (b) the Initial Shares, rounded
    to the nearest whole number of Shares.
	 	 
	 	If the Settlement Amount
    is positive, Seller shall deliver to Buyer a number of Shares equal to the Settlement Amount on the Settlement Date. If the
    Settlement Amount is negative, the provisions of Buyer Settlement shall apply.
	 	 
	Settlement Currency:	USD
	 	 
	Settlement Date:	The date that falls one Settlement Cycle after the relevant Valuation Date or Acceleration Date if prior to the Scheduled Valuation Date for the relevant portion of the Transaction (the final Settlement Date, the “Final Settlement Date”).
	 	 
	Buyer Settlement:	If the Settlement Amount is negative, Buyer may elect that the Buyer Share Settlement provisions apply in lieu of the Buyer Cash Settlement Method provisions by written notice to Seller, which notice shall be effective if received by Seller by the earlier of (i) the Scheduled Valuation Date and (ii) the Scheduled Trading Day immediately following the final Acceleration Date (such date, the “Buyer Election Date”).
	 	 
	Buyer Cash Settlement: 	If Cash Settlement is applicable and the Settlement Amount is negative, then Buyer shall pay to Seller the absolute value of the Buyer Cash Settlement Amount on the Buyer Cash Settlement Payment Date.



 






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	Buyer Cash Settlement Amount: 	An amount equal to (a) the aggregate of each negative Settlement Amount, multiplied by (b) the Buyer Settlement Price. 
	 	 
	Buyer Settlement Price: 	Subject to “Market Disruption Event” above, an amount equal to the arithmetic mean of the 10b-18 VWAP for each Scheduled Trading Day in the Buyer Settlement Valuation Period. 
	 	 
	Buyer Settlement Valuation Period: 	A number of Scheduled Trading Days determined in good faith by the Calculation Agent in its commercially reasonable discretion to be necessary for MSCO to unwind its commercially reasonable Hedge Position in a commercially reasonable manner using commercially reasonable efforts, beginning on the Scheduled Trading Day immediately following the Buyer Election Date, subject to “Market Disruption Event” above. 
	 	 
	Buyer Cash Settlement Payment Date: 	The Currency Business Day immediately following the last day of the Buyer Settlement Valuation Period. 
	 	 
	Buyer Share Settlement:	On the Final Settlement Date, Buyer shall deliver to Seller a number of Shares equal to the Buyer Share Settlement Percentage multiplied by the absolute value of the aggregate of each negative Settlement Amount.  Buyer’s obligation under this provision shall be netted against any obligations of Seller under “Physical Settlement” above on the Final Settlement Date.
	 	 
	Buyer Share Settlement Percentage:	As specified in Schedule I
	 	 
	Other Applicable Provisions:	The last sentence of Section 9.2, Sections 9.8, 9.9, 9.10 and 9.11 (except that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws arising as a result of the fact that Buyer is the issuer of the Shares) and Section 9.12 of the Equity Definitions will be applicable to the Transaction.



 


SHARE ADJUSTMENTS:


 


	Potential Adjustment Event:	In addition to the events described in Section 11.2(e) of the Equity Definitions, the occurrence of a Disrupted Day (including due to
the occurrence of a Regulatory Disruption) shall constitute a Potential Adjustment Event. In the case of any event described in the preceding
sentence, the Calculation Agent may, in its commercially reasonable judgment, adjust any relevant terms of the Transaction as the Calculation
Agent determines appropriate to account for the economic effect on the Transaction of such event.




 






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	Different Dividend:	For any calendar quarter, any dividend or distribution on the Shares with an ex-dividend date occurring during such calendar quarter (other than any dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions) (a “Dividend”) the amount or value of which (as determined by the Calculation Agent), when aggregated with the amount or value (as determined by the Calculation Agent) of any and all previous Dividends with ex-dividend dates occurring in the same calendar quarter, differs from the Ordinary Dividend Amount.
	 	 
	Ordinary Dividend Amount:	As specified in Schedule I
	 	 
	Extraordinary Dividend:	The per Share cash dividend or distribution, or a portion thereof, declared by Issuer on the Shares that is classified by the board of directors of Issuer as an “extraordinary” dividend.
	 	 
	Consequences of Different Dividend:	The declaration by the Issuer of any Different Dividend, the ex-dividend date for which occurs or is scheduled to occur during the Relevant Dividend Period (as defined below) for the Transaction, shall, at the Calculation Agent’s election, either (x) constitute an Additional Termination Event in respect of such Transaction, with Buyer as the sole Affected Party and such Transaction as the sole Affected Transaction or (y) result in an adjustment, by the Calculation Agent, to the Floor Price as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such Different Dividend.
	 	 
	Early/Late Ordinary Dividend Payment:	If an ex-dividend date for any Dividend that is neither (x) a dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions nor (y) an Extraordinary Dividend, occurs during any calendar quarter occurring (in whole or in part) during the Relevant Dividend Period and such ex-dividend date is not on the Scheduled Ex-Dividend Date for such calendar quarter, the Calculation Agent shall in good faith and in a commercially reasonable manner make such adjustment to the exercise, settlement, payment or any other terms of the Transaction as the Calculation Agent determines appropriate to account solely for the economic effect of the timing of such Dividend on the Transaction.
	 	 
	Scheduled Ex-Dividend Dates:	As specified in Schedule I
	 	 
	Relevant Dividend Period:	The period from, and including, the Trade Date for the Transaction to, and including, the later of the second Scheduled Trading Day following (i) the Acceleration Date, if an Acceleration Date occurs as to the Transaction, or (ii) the Scheduled Valuation Date for the Transaction and (iii) the last day of any Buyer Settlement Valuation Period for the Transaction.
	 	 
	Method of Adjustment:	Calculation Agent Adjustment



 






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EXTRAORDINARY
EVENTS:


 





Consequences of Merger
Events:


 


	Share-for-Share:	Modified Calculation Agent Adjustment
	 	 
	Share-for-Other:	Cancellation and Payment
	 	 
	Share-for-Combined:	Component Adjustment
	 	 
	Tender Offer:	Applicable



 


Consequences of
Tender Offers:


 


	Share-for-Share:	Modified Calculation Agent Adjustment
	 	 
	Share-for-Other:	Modified Calculation Agent Adjustment
	 	 
	Share-for-Combined:	Modified Calculation Agent Adjustment
	 	 
	New Shares:	In the definition of New Shares in Section 12.1(i) of the Equity Definitions, the text in clause (i) thereof shall be deleted in its entirety and replaced with “publicly quoted, traded or listed on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors)”.
	 	 
	Composition of Combined Consideration:	Not Applicable
	 	 
	Nationalization, Insolvency or Delisting:	Cancellation and Payment; provided that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.



 






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Additional
Disruption Events: 


 


	Change in Law:	Applicable; provided that (a) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or announcement or statement of, the formal or informal interpretation”, (ii) replacing the word “Shares” where it appears in clause (X) thereof with the words “Hedge Position” and (iii) adding the words “, or holding, acquiring or disposing of Shares or any Hedge Position relating to,” after the word “under” in clause (Y) thereof and (b) MSCO shall not terminate any “Transaction” for a Change in Law referred to in clause (Y) of section 12.9(a)(ii) of the Equity Definitions except to the extent it is exercising its right to terminate as a result of such “Change in Law” with respect to other similarly situated counterparties in respect of similar transactions; provided further that (i) any determination as to whether (A) the adoption of or any change in any applicable law or regulation (including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute) or (B) the promulgation of or any change in the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any action taken by a taxing authority), in each case, constitutes a “Change in Law” shall be made without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, and (ii) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word “regulation” in the second line thereof the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)”.
	 	 
	Failure to Deliver:	Applicable
	 	 
	Insolvency Filing:	Applicable
	 	 
	Hedging Disruption:	Applicable
	 	 
	Increased Cost of Hedging:	Not Applicable
	 	 
	Loss of Stock Borrow:	Applicable
	 	 
	Maximum Stock Loan Rate:	As specified in Schedule I
	 	 
	Increased Cost of Stock Borrow:	Applicable
	 	 
	Initial Stock Loan Rate:	As specified in Schedule I
	 	 
	Determining Party:	For all applicable events, MSCO
	 	 
	Hedging Party:	For all applicable events, MSCO
	 	 
	Non-Reliance:	Applicable
	 	 
	Agreements and Acknowledgments Regarding Hedging Activities:	Applicable
	 	 
	Additional Acknowledgments:	Applicable



 






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	Hedging Adjustments:	Whenever the Calculation Agent, the Determining Party, MSCO or the Hedging Party is called upon to make a judgment, determination, calculation or adjustment or exercises its discretion pursuant to the terms of this Confirmation or the Equity Definitions to take into account the effect of an event, such party shall make such judgment, determination, calculation or adjustment by reference to the effect of such event on MSCO with the Calculation Agent assuming that MSCO maintains a commercially reasonable Hedge Position in respect of the Transaction at the time of such event.



 


3.             Calculation Agent:                    MSCO. Notwithstanding anything to the contrary in this Confirmation or any Schedule thereto, whenever any of the
Calculation Agent, Determining Party, Hedging Party or MSCO is required to act or to exercise judgment or discretion in any way with respect
to the Transaction hereunder (including, without limitation, by making calculations, adjustments or determinations with respect to the
Transaction), it will do so in good faith and in a commercially reasonable manner. MSCO shall, within (five) 5 Exchange Business Days
of a written request by Issuer, provide a written explanation of any judgment, calculation, adjustment or determination made by MSCO,
as to the Transaction, in its capacity as Calculation Agent, Determining Party, Hedging Party, Seller or otherwise, including, where applicable,
a description of the methodology and the basis for such judgment, calculation, adjustment or determination in reasonable detail, it being
agreed and understood that MSCO shall not be obligated to disclose any confidential or proprietary models or other information that MSCO
believes to be confidential, proprietary or subject to contractual, legal or regulatory obligations not to disclose such information,
in each case, used by it for such judgment, calculation, adjustment or determination


 


4.             Account Details and Notices:


 


		(a)	Account for delivery of Shares to Issuer:



 


To be provided separately.


 


		(b)	Account for payments to Issuer:



 


To be provided separately.


 


		(c)	Account for payments and delivery of Shares to MSCO:



 


To be provided separately.


 


		(d)	For purposes of this Confirmation:



 


 (i)    Address for notices or communications to Issuer:




 


To: Atlas Air Worldwide
Holdings, Inc.

2000 Westchester Avenue

Purchase, New York 10577

Attention: Adam R. Kokas, Executive Vice President and General Counsel

Telephone: (914) 701-8576

Email: Adam.Kokas@AtlasAir.com


 


With a copy to:


 


Cravath, Swaine &
Moore LLP

Attention: Andrew J. Pitts

Telephone No: (212) 474-1620

Facsimile No: (212) 474-3700

Email: apitts@cravath.com


 






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		(ii)	Address for notices or communications to MSCO:



 


Morgan Stanley &
Co. LLC

1585 Broadway

New York, NY 10036-8293

Attention: Giulia Caterini

Email: Giulia.Caterini@morganstanley.com


 


With a copy to:


 


Morgan Stanley &
Co. LLC

1585 Broadway

New York, NY 10036-8293

Attention: Steven Seltzer

Email: Steven.Seltzer1@morganstanley.com


 


5.             Amendments to the Equity Definitions.


 


		(a)	Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or
concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “a material economic
effect on the Shares or the relevant Transaction provided that such event is not based on (a) an observable market, other than the market
for Issuer’s own stock, or (b) an observable index, other than an index calculated and measured solely by reference to Issuer’s
own operations”.



 


		(b)	The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause (A) thereof, is hereby
amended to read as follows: ‘(c) If “Calculation Agent Adjustment” is specified as the Method of Adjustment in the related
Confirmation of a Share Option Transaction or Share Forward Transaction, then, following the announcement or occurrence of any Potential
Adjustment Event, the Calculation Agent will determine whether such Potential Adjustment Event has a material economic effect on the Transaction
and, if so, will in its good faith and commercially reasonable discretion (i) make appropriate adjustment(s), if any, to any one or more
of:’ and the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by deleting the words “diluting
or concentrative” and inserting in their place the words “material economic” and by deleting the phrase “(provided
that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative
to the relevant Share)” and replacing such latter phrase with the words “(provided that, solely in the case of Sections 11.2(e)(i),
(ii)(A) and (iv), no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity
relative to the relevant to the Shares but, for the avoidance of doubt, solely in the case of Sections 11.2(e)(ii)(B) through (D), (iii),
(v), (vi) and (vii) adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity
relative to the Transaction or the Shares)”.



 


		(c)	Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “diluting
or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “a material economic
effect on the Shares or the relevant Transaction”.



 


		(d)	the definition of “Announcement Date” in Section 12.1(l) of the Equity Definitions is hereby
amended by (a) replacing the word “leads to the” with the words “, if completed, would lead to a” in the fifth
line thereof, (b) replacing the words “voting
shares” with the word “, voting power or Shares” in the fifth line thereof and (c) inserting the words “by any
entity” after the word “announcement” in the fourth line thereof;



 






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		(e)	Section 12.3(d) of the Equity Definitions shall be amended by replacing each occurrence of the words “Tender
Offer Date” by “Announcement Date.”



 


		(f)	Section 12.6(c)(ii) of the Equity Definitions is hereby amended by replacing the words “the Transaction
will be cancelled,” in the first line with the words “MSCO will have the right to cancel the Transaction,”.



 


		(g)	Section 12.9(a)(v) of the Equity Definitions is hereby amended by (a) inserting the following words at
the end of clause (A) thereof: “in the manner contemplated by the Hedging Party on the Trade Date” and (b) inserting the following
language at the end of such Section:“, provided that any such inability that occurs solely due to the deterioration of the creditworthiness
of the Hedging Party shall not be deemed a Hedging Disruption. For the avoidance of doubt, the term “equity price risk” shall
be deemed to include, but shall not be limited to, stock price and volatility risk. And, for the further avoidance of doubt, any such
transactions or assets referred to in phrases (A) or (B) above must be available on commercially reasonable pricing terms.”



 


		(h)	Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) deleting (1) subsection (A) in
its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection
(B); and (B) replacing the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares” with the phrase “such
Lending Party does not lend Shares” in the penultimate sentence.



 


		(i)	Section 12.9(b)(v) of the Equity Definitions is hereby amended by (A) deleting clause (X) in the final
sentence; and (B) adding the phrase “, provided that the Non-Hedging Party may not elect to terminate the Transaction unless concurrently
with electing to terminate the Transaction, it represents and warrants to the Hedging Party that it is not in possession of any material
non-public information with respect to the Non-Hedging Party or the Shares” at the end of subsection (C).



 


6.             Alternative Termination Settlement.


 


In the event
that (a) an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with
respect to the Transaction or (b) the Transaction is cancelled or terminated upon the occurrence of an Extraordinary Event (except
as a result of (i) a Nationalization, Insolvency or Merger Event in which the consideration to be paid to holders of Shares consists
solely of cash, (ii) a Merger Event or Tender Offer that is within Issuer’s control, or (iii) an Event of Default in which
Issuer is the Defaulting Party or a Termination Event in which Issuer is the Affected Party other than an Event of Default of the
type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the type described in
Section 5(b) of the Agreement, in each case that resulted from an event or events outside Issuer’s control), if either party
would owe any amount to the other party pursuant to Section 6(d)(ii) of the Agreement or any Cancellation Amount pursuant to Article
12 of the Equity Definitions (any such amount, a “Payment Amount”), then such payment shall be paid as set forth
under the Agreement or the Equity Definitions, as the case may be, unless Issuer makes an election to the contrary (which election
shall be effective only if Issuer represents in writing to MSCO that, as of the date of such election, Issuer is not in possession
or otherwise aware of any material nonpublic information regarding Issuer or the Shares) no later than the later of (x) the Early
Termination Date or the date on which such Transaction is terminated or cancelled or (y) the business day immediately following the
date on which Issuer receives written notice from MSCO as to such Early Termination Date, termination or cancellation date. Issuer
or MSCO, as the case may be, shall deliver to the other party a number of Shares (or a number of units, each comprising the number
or amount of the securities or property that a hypothetical holder of one Share would receive in the case of a Nationalization,
Insolvency or Merger Event, as the case may be (each such unit, an “Alternative Delivery Unit”)), with a value
equal to the Payment Amount, as determined by the Calculation Agent over a commercially reasonable period of time. In determining
the number of Shares (or Alternative Delivery Units) required to be delivered under this provision, the Calculation Agent shall take
into account the market price of the Shares or Alternative Delivery Units on the Early Termination Date or the date of early
cancellation or termination, as the case may be. Additionally, (x) if such delivery is made by MSCO, the Calculation Agent shall
take into account the prices at which MSCO purchases Shares (or Alternative Delivery Units) in a commercially reasonable manner and
within a commercially reasonable period of time in order to fulfill its delivery obligations under this Section 6,
so long as such purchase prices reflect the prevailing market prices of Shares, or, to the extent a prevailing market price is
reasonably determinable based on actual transactions, Alternative Delivery Units and (y) if such delivery is made by the Issuer, the
Calculation Agent shall apply a commercially reasonable illiquidity discount and take into account any commercially reasonable
carrying charges and reasonable and documented out of pocket expenses in connection with the restricted status of such Shares under
applicable securities laws and, in determining the composition of any Alternative Delivery Unit for purposes of such determination,
if the relevant Nationalization, Insolvency 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.


 






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7.             Special Provisions for Acquisition Transaction Announcements.


 


		(a)	If an Acquisition Transaction Announcement occurs on or prior to the final Valuation Date, then the Calculation
Agent shall, in its good faith and commercially reasonable discretion, make such adjustments to the exercise, settlement, payment or any
other terms of the Transaction as the Calculation Agent determines appropriate (including, without limitation and for the avoidance of
doubt, adjustments that would allow the Settlement Amount to be less than zero), at such time or at multiple times as the Calculation
Agent determines appropriate, to account for the economic effect on the Transaction of such event (including adjustments to account for
changes in volatility, stock loan rate, value of any commercially reasonable Hedge Positions in connection with the Transaction, and liquidity
relevant to the Shares or to such Transaction to maintain a commercially reasonable hedge position). If an Acquisition Transaction Announcement
occurs after the Trade Date but prior to the Lock-Out Date, the Lock-Out Date shall be deemed to be the date of such Acquisition Transaction
Announcement.



 


		(b)	“Acquisition Transaction Announcement” means (i) the announcement of an Acquisition
Transaction, (ii) an announcement that Issuer or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding
designed to result in an Acquisition Transaction, (iii) the announcement of the intention to solicit or enter into, or to explore strategic
alternatives or other similar undertaking that may include, an Acquisition Transaction, (iv) any other announcement that in the commercially
reasonable judgment of the Calculation Agent is reasonably likely to result in an Acquisition Transaction or (v) any announcement subsequent
to an Acquisition Transaction Announcement relating to an amendment, extension, withdrawal or other change to the subject matter of a
prior Acquisition Transaction Announcement. For the avoidance of doubt, the term “announcement” as used in the definition
of Acquisition Transaction Announcement refers to any public statement and/or any announcement related to an Acquisition Transaction,
whether made by Issuer or a third party.



 


		(c)	“Acquisition Transaction” means (i) any Merger Event (for purposes of this definition,
the definition of Merger Event shall be read with the references therein to “100%” being replaced by “20%” and
to “50%” by “75%” and without reference to the clause beginning immediately following the definition of Reverse
Merger therein to the end of such definition), Tender Offer or Merger Transaction (as defined below) or any other transaction involving
the merger of Issuer with or into any third party, (ii) the sale or transfer of all or substantially
all of the assets or liabilities of Issuer, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction,
(iv) any acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets or liabilities (including
any capital stock or other ownership interests in subsidiaries) or other similar event by Issuer or any of its subsidiaries where the
aggregate consideration transferable or receivable by or to Issuer or its subsidiaries exceeds 20% of the market capitalization of Issuer
and (v) any transaction with respect to which Issuer or its board of directors has a legal obligation to make a recommendation to its
shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) or otherwise).



 






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8.             MSCO Adjustments.


 


In the event that
MSCO reasonably determines based on advice of counsel that it is appropriate with regard to any legal, regulatory or self-regulatory requirements
or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily
adopted by MSCO, and including, without limitation, Rule 10b-18, Rule 10b-5, Regulations 13D-G and Regulations 14D-E, each under the Exchange
Act; provided that such requirements or related policies or procedures are applicable to transactions in similar situations and
applied to any Transaction hereunder in a non-discriminatory manner), for MSCO to refrain from purchasing Shares or engaging in other
market activity or to purchase fewer than the number of Shares or to engage in fewer or smaller other market transactions than MSCO would
otherwise purchase or engage in to maintain a commercially reasonable hedge position (such determination, a “Regulatory Disruption”)
on any Scheduled Trading Day(s) on or prior to the conclusion of the Potential Purchase Period (as defined below), then MSCO may, in its
good faith discretion, by written notice to Issuer (which may be in the form of email), elect that a Market Disruption Event shall be
deemed to have occurred and will be continuing on any such Scheduled Trading Day(s) and each such Scheduled Trading Day shall be a Disrupted
Day (subject to “Market Disruption Event” above). Any such Scheduled Trading Day on which a Market Disruption Event is deemed
to have occurred pursuant to this Section 8 shall be a Disrupted Day in full, and not a Disrupted Day only in part


 


9.             Covenants.


 


Issuer covenants
and agrees that:


 


		(a)	Without the prior written approval of MSCO, until the end of the Potential Purchase Period (as defined
below), neither it nor any of its affiliated purchasers (as defined in Rule 10b-18 under the Exchange Act, “Rule 10b-18”)
shall directly or indirectly (which shall be deemed to include the writing or purchase of any cash-settled or other derivative transaction
which references Shares or structured Share repurchase or other derivative referencing the Shares with a hedging period, calculation period
or settlement valuation period or similar period that overlaps with the Transaction) purchase, offer to purchase, place any bid or limit
order relating to a purchase of or commence any tender offer relating to Shares (or any security convertible into or exchangeable for
Shares) or take any other action that would cause the purchase by MSCO of any Shares in connection with this Confirmation not to qualify
for the safe harbor provided in Rule 10b-18 under the Exchange Act (assuming for the purposes of this paragraph that such safe harbor
were otherwise available for such purchases) provided, however, that notwithstanding the foregoing or any other provision of this
Confirmation (including any schedules thereto (i) an agent independent of Issuer may purchase Shares on behalf of an issuer plan sponsored
by Issuer or any affiliate in accordance with the requirements of Section 10b-18(a)(13)(ii) under the Exchange Act without MSCO consent
(with “issuer plan” and “agent independent of Issuer” each being used herein as defined in Rule 10b-18), (ii)
Issuer or any “affiliated purchaser” may purchase Shares in (x) unsolicited transactions or (y) privately negotiated (off-market)
transactions, in each case, that are not “Rule 10b-18 purchases” (as defined in Rule 10b-18), in each case, without MSCO’s
consent, (iii) without MSCO consent, Issuer may repurchase Shares from holders
of awards granted under Issuer’s equity incentive plans for the purpose of paying the tax withholding obligations arising from the
vesting of, or paying the exercise price in connection with the exercise of, or reacquiring Shares as a result of the forfeiture of, any
such awards and (iv) the Permitted Transactions shall be permitted without consent of or notice to MSCO and no Permitted Transaction(s)
shall give rise to a Potential Adjustment Event, a Market Disruption Event, a Regulatory Disruption Event or any other adjustment to the
terms of the Transaction. “Permitted Transactions” means (A) the continuation in effect of, any amendments, discharges,
repayments or terminations of, any exercise of rights under and any delivery or receipt of Shares or cash by Issuer pursuant to Issuer’s
2.25% Convertible Senior Notes due 2022 (the “2015 Notes”), the Indenture and First Supplemental Indenture dated as
of June 3, 2015 relating to the 2015 Notes, the two (2) Base Call Option Transactions dated May 28, 2015 entered into by Issuer in connection
with the 2015 Notes with each of Morgan Stanley & Co. International plc (“MSIL”) and BNP Paribas (“BNP”)
(together the “2015 Base Call Options”), the two (2) Additional Call Option Transactions dated June 1, 2015 entered
into by Issuer in connection with the 2015 Notes with each of MSIL and BNP (the “2015 Additional Call Options” and
together with the 2015 Base Call Options, the “2015 Call Options”), the Base Warrants dated May 28, 2015 issued and
sold by Issuer to each of MSIL and BNP (together the “2015 Base Warrants”), the Additional Warrants dated June 1, 2015
issued and sold by Issuer to each of MSIL and BNP (the “2015 Additional Warrants” and together with the 2015 Base Warrants,
the “2015 Warrants”) Issuer’s 1.875% Convertible Senior Notes due 2024 (the “2017 Notes”),
the Indenture and Second Supplemental Indenture dated as of May 23, 2017 relating to the 2017 Notes, the three (3) Base Call Option Transactions
dated May 17, 2017 entered into by Issuer in connection with the 2017 Notes with each of MSIL, BNP and Citibank, N.A. (“Citi”)
(together the “2017 Base Call Options”), the three (3) Additional Call Option Transactions dated May 18, 2017 entered
into by Issuer in connection with the 2017 Notes with each of MSIL BNP and Citi (the “2017 Additional Call Options”
and together with the 2017 Base Call Options, the “2017 Call Options”), the Base Warrants dated May 17, 2017 issued
and sold by Issuer to each of MSIL, BNP and Citi (together the “2017 Base Warrants”), and the Additional Warrants dated
May 18, 2017 issued and sold by Issuer to each of MSIL, BNP and Citi (the “2017 Additional Warrants” and together with
the 2015 Base Warrants, the “2017 Warrants”) and (B) (i) any open market purchases of Shares by Issuer through MSCO
and (ii) purchases on behalf of Issuer by MSCO pursuant to the terms of the Non-Discretionary Plan Stock Repurchase Agreement between
Issuer and MSCO, it being agreed that the aggregate of such purchases under both (B)(i) and (B)(ii) together shall not, on any day, exceed
the Specified ADTV Percentage. “Potential Purchase Period” means the period from, and including, the Trade Date to,
and including, the latest of (i) the last day of any Buyer Settlement Valuation Period, (ii) the earlier of (A) the Exchange Business
Day immediately following the last day of the Calculation Period and (B) the Valuation Date and (iii) if an Early Termination Date occurs
or the Transaction is cancelled pursuant to Article 12 of the Equity Definitions, a date determined by MSCO in its commercially reasonable
judgment and communicated to Issuer no later than the Exchange Business Day immediately following such date, or in the absence of such
communication, the fifth Exchange Business Day immediately following such Early Termination Date or date of cancellation.



 






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		(b)	It will make all filings required to be made by it with the Securities and Exchange Commission and any
securities exchange in connection with the transactions contemplated by this Confirmation.



 


		(c)	Without limiting the generality of Section 13.1 of the Equity Definitions, it is not relying, and has
not relied, upon MSCO or any of its representatives or advisors with respect to the legal, accounting, tax or other implications of this
Confirmation and that it has conducted its own analyses of the legal, accounting, tax and other implications of this Confirmation, and
that MSCO and its affiliates may from time to time effect transactions for their own account or the account of customers and hold positions
in securities or options on securities
of Issuer and that MSCO and its affiliates may continue to conduct such transactions during the term of this Confirmation. Without limiting
the generality of the foregoing, Issuer acknowledges that MSCO is not making any representations or warranties or taking any position
or expressing any view with respect to the treatment of the Transaction under any accounting standards including ASC Topic 260, Earnings
Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives
and Hedging – Contracts in Entity’s Own Equity (or any successor issue statements) or under FASB’s Liabilities &
Equity Project.



 






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		(d)	Without the prior consent of MSCO, neither it nor its controlled affiliates shall take any action that
would cause a restricted period (as defined in Regulation M under the Exchange Act (“Regulation M”)) to be applicable
to any purchases of Shares, or of any security for which Shares is a reference security (as defined in Regulation M), by Issuer or any
affiliated purchasers (as defined in Regulation M) of Issuer during the Potential Purchase Period.



 


		(e)	It will not during the term of the Transaction make, or, to the extent within its control, permit to be
made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction
unless such public announcement is made prior to the open or after the close of the regular trading session on the Exchange for the Shares.
“Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization of Issuer as
contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act. Issuer acknowledges that any such public announcement may trigger the provision
set forth in Section 8 above.



 


		(f)	Prior to 9:00 AM New York City time on the Scheduled Trading Day following the announcement of a Merger
Transaction, Issuer shall provide MSCO with written notice, which notice shall specify (i) the nature of such announcement; (ii) Issuer’s
average daily “Rule 10b-18 purchases” as defined in Rule 10b-18 during the three full calendar months immediately preceding
such announcement and (iii) the number of Shares purchased pursuant to the block purchase proviso in Rule 10b-18(b)(4) under the Exchange
Act for the three full calendar months preceding the date of such announcement. Such written notice shall be deemed to be a certification
by Issuer to MSCO that such information is true and correct. Issuer understands that MSCO will use this information in calculating the
trading volume for purposes of Rule 10b-18. In addition, Issuer shall promptly provide written notice to MSCO of the occurrence of the
completion of such transaction or the completion of the vote by target shareholders related to such transaction. Issuer acknowledges that
its delivery of such notices must comply with the standards set forth in Section 10(c) below.



 


		(g)	(A) Any Shares or Alternative Delivery Units delivered to MSCO may be transferred by and among MSCO and
its Eligible Affiliates (as defined in Schedule I) and Issuer shall effect such transfer without any further action by MSCO and (B) after
the period of 6 months from the date that Issuer elects to deliver any Shares or Alternative Delivery Units pursuant to the terms of this
Transaction (or no later than 1 year from such date, if at the time of MSCO’s or such Eligible Affiliate’s request, informational
requirements of Rule 144 under the Securities Act are not satisfied with respect to Issuer) has elapsed in respect of any such election
to deliver Shares or Alternative Delivery Units to MSCO, Issuer shall promptly remove, or cause the transfer agent for such Shares or
Alternative Delivery Units to remove, any legends referring to any restrictions or requirements related to any applicable securities laws
upon request by MSCO (or such Eligible Affiliate of MSCO) to Issuer or such transfer agent, without any requirement for the delivery of
any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other
amount or any other action by MSCO (or such Eligible Affiliate of MSCO). Notwithstanding anything to the contrary herein, to the extent
the provisions of Rule 144 of the Securities Act or any successor rule are amended, or the applicable interpretation thereof by the Securities
and Exchange Commission or any court change after the Trade Date, the agreements of Issuer herein
shall be deemed modified to the extent necessary, as reasonably determined by MSCO on the advice of counsel, to comply with Rule 144 of
the Securities Act, as in effect at the time of delivery of the relevant Shares or Alternative Delivery Units.



 






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10.           Representations, Warranties, Acknowledgments, and Agreements.


 


		(a)	Issuer hereby represents and warrants to MSCO on the date hereof that:



 


		(i)	(A) Issuer is not aware of any material nonpublic information regarding Issuer or the Shares, and is entering
into the Transaction in good faith and not as part of a plan or scheme to evade the prohibitions of federal securities laws, including,
without limitation, Rule 10b-5 under the Exchange Act and (B) Issuer agrees not to “alter” or “deviate from” the
terms of this Confirmation or “enter into” or “alter” “a corresponding or hedging transaction or position”
with respect to the Transaction (including, without limitation, with respect to any securities convertible or exchangeable into the Shares)
(in each case within the meaning of each such term in Rule 10b5-1 under the Exchange Act as in effect on the date hereof during the term
of this Confirmation); provided, however, for the avoidance of doubt, that the foregoing shall not prohibit any Permitted Transactions.



 


		(ii)	The transactions contemplated by this Confirmation have been authorized by the board of directors of the
Issuer as part of Issuer’s publicly announced program to repurchase Shares prior to the Trade Date.



 


		(iii)	Issuer is not entering into the Transaction or making any election hereunder to facilitate a distribution
of the Shares (or any security convertible into or exchangeable for Shares) in violation of the federal securities laws.



 


		(iv)	Issuer is not entering into the Transaction or making any election hereunder to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress the price of the Shares
(or any security convertible into or exchangeable for Shares), in each case, in violation of the federal securities laws.



 


		(v)	There have been no purchases of Shares in Rule 10b-18 purchases of blocks pursuant to the once-a-week
block exception contained in Rule 10b-18(b)(4) by or for Issuer or any of its affiliated purchasers during each of the four calendar weeks
preceding the Trade Date and during the calendar week in which the Trade Date occurs (“Rule 10b-18 purchase”, “blocks”
and “affiliated purchaser” each as defined in Rule 10b-18).



 


		(vi)	Issuer is as of the date hereof, the Prepayment Date, any Buyer Election Date and any Buyer Cash Settlement
Payment Date, and after giving effect to the transactions contemplated hereby will be, Solvent. As used in this paragraph, the term “Solvent”
means, with respect to a particular date, that on such date (A) the present fair market value (or present fair saleable value) of the
assets of Issuer is not less than the total amount required to pay the liabilities of Issuer on its total existing debts and liabilities
(including contingent liabilities) as they become absolute and matured, (B) Issuer is able to realize upon its assets and pay its debts
and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business, (C) assuming
consummation of the transactions as contemplated by this Confirmation, Issuer is not incurring debts or liabilities beyond its ability
to pay as such debts and liabilities mature, (D) Issuer is not engaged in any business or transaction, and does not propose to engage
in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the
prevailing practice in the industry in which Issuer is engaged, (E) Issuer is not a defendant in any civil action that could reasonably
be expected to result in a judgment that Issuer is or would become unable to satisfy, (F) Issuer is not “insolvent”
(as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy
Code”)) and (G) Issuer would be able to purchase Shares with an aggregate purchase price equal to the Prepayment Amount in compliance
with the corporate laws of the jurisdiction of its incorporation.



 






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



 


		(viii)	Issuer (A) is capable of evaluating investment risks independently, both in general and with regard to
all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the
recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; and (C)
has total assets of at least USD 50,000,000 as of the date hereof.



 


		(b)	Issuer acknowledges and agrees that the Initial Shares may be sold short to Issuer. Issuer further acknowledges
and agrees that MSCO may purchase Shares in connection with the Transaction, which Shares may be used to cover all or a portion of such
short sale or may be delivered to Issuer. Such purchases and any other market activity by MSCO will be conducted independently of Issuer
by MSCO as principal for its own account. All of the actions to be taken by MSCO in connection with the Transaction shall be taken by
MSCO independently and without any advance or subsequent consultation with Issuer.



 


		(c)	It is the intent of the parties that the Transaction comply with the requirements of Rule 10b5-1(c)(1)(i)(B)
of the Exchange Act, and the parties agree that this Confirmation shall be interpreted to comply with the requirements of such rule, and
Issuer shall not take any action that results in the Transaction not so complying with such requirements. Without limiting the generality
of the preceding sentence, Issuer acknowledges and agrees that (A) Issuer does not have, and shall not attempt to exercise, any influence
over how, when or whether MSCO effects any market transactions in connection with the Transaction and (B) neither Issuer nor its officers
or employees shall, directly or indirectly, communicate any information regarding Issuer or the Shares to any employee of MSCO or its
Affiliates, other than employees identified by MSCO to Issuer in writing as employees not responsible for executing market transactions
in connection with the Transaction. Issuer also acknowledges and agrees that any amendment, modification, waiver or termination of the
Transaction must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in
Rule 10b5-1(c) under the Exchange Act. Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination
shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5 under the Exchange Act, and no
such amendment, modification, waiver or termination shall be made at any time at which Issuer or any officer or director of Issuer is
aware of any material nonpublic information regarding Issuer or the Shares.



 


		(d)	Each of Issuer and MSCO represents and warrants to the other that it is an “eligible contract participant”
as defined in Section 1a(18) of the U.S. Commodity Exchange Act, as amended.



 


		(e)	Each of Issuer and MSCO acknowledges that the offer and sale of the Transaction to it is intended to
                                                                be exempt from registration under the Securities Act by virtue of Section 4(a)(2) thereof. Accordingly, it represents and warrants
                                                                to the other party that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able
                                                                to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D
                                                                under the Securities Act, (iii) it is entering into the Transaction for its own account and without a view to the distribution or
                                                                resale thereof and (iv) the assignment, transfer or other disposition
of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities
Act and state securities laws.



 






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11.           Acknowledgements of Issuer Regarding Hedging and Market Activity.


 


Issuer agrees,
understands and acknowledges that:


 


		(a)	During the period from (and including) the Trade Date to (and including) the Settlement Date, MSCO and
its Affiliates may buy or sell Shares in accordance with the terms of this Confirmation or other securities or buy or sell options or
futures contracts or enter into swaps or other derivative transactions in order to establish, maintain or adjust its Hedge Position with
respect to the Transaction.



 


		(b)	MSCO and its Affiliates also may be active in the market for the Shares or options, futures contracts,
swaps or other derivative transactions relating to the Shares other than in connection with hedging activities in relation to the Transaction.



 


		(c)	MSCO shall make its own determination as to whether, when and in what manner any hedging or market activities
in Issuer’s securities or other securities or transactions shall be conducted and shall do so in a manner that it deems appropriate
to hedge its price and market risk with respect to the Transaction.



 


		(d)	Any such market activities of MSCO and its Affiliates may affect the market price and volatility of the
Shares, including the 10b-18 VWAP, the Forward Price, and the Buyer Settlement Price, each in a manner that may be adverse to Issuer.



 


12.           Additional Representations, Warranties and Covenants of MSCO.


 


In addition to the representations,
warranties and covenants in the Agreement, MSCO represents, warrants and covenants to Issuer that:


 


		(a)	MSCO has implemented reasonable policies and procedures, taking into consideration the nature of their
business, designed to ensure that individuals making investment decisions related to the Transaction do not violate laws prohibiting trading
on the basis of material non-public information.



 


		(b)	MSCO has not, at any time before the Trade Date for the Transaction, discussed any offsetting transaction(s)
in respect of the Transaction with any third party.



 


		(c)	Within one Exchange Business Day of purchasing any Shares on behalf of Issuer pursuant to the once-a-week
block exception set forth in paragraph (b)(4) of Rule 10b-18, MSCO shall notify Issuer of the total number of Shares so purchased.



 


		(d)	In addition to the covenants in the Agreement and herein, MSCO agrees to use commercially reasonable
                                                                 efforts to make all purchases of Shares (other than any purchases made by MSCO in connection with dynamic hedging of MSCO’s
                                                                 exposure to the Transaction as a result of any equity optionality (including any timing optionality) contained in such Transaction)
                                                                 in connection with the Transaction in a manner that would comply with the limitations set forth in clauses (b)(1), (b)(2), (b)(3)
                                                                 and (b)(4) and (c) of Rule 10b-18, as if such rule were applicable to such purchases and taking into account any applicable
                                                                 Securities and Exchange Commission no-action letters as appropriate, and subject to any delays between the execution and reporting
                                                                 of a trade of the Shares on the Exchange and other circumstances beyond MSCO’s control; provided that, without limiting
                                                                 the generality of the first sentence of this Section 12(c), MSCO shall not be responsible for any failure to comply with Rule
                                                                 10b-18(b)(3) to the extent any transaction that was executed (or deemed to be executed) by or on behalf of Issuer or an
                                                                 “affiliated purchaser” (as defined under Rule 10b-18) pursuant to a separate agreement is not deemed
to be an “independent bid” or an “independent transaction” for purposes of Rule 10b-18(b)(3).



 






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13.           Other Provisions.


 


		(a)	Issuer agrees and acknowledges that MSCO is a “financial institution,” “financial participant”
and “swap participant” within the meaning of Sections 101(22), 101(22A) and 101(53C) of the Bankruptcy Code. The parties hereto
further agree and acknowledge that it is the intent of the parties that (A) this Confirmation is a “securities contract,”
as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection
herewith is a “termination value,” “payment amount,” “offset or net out” or “other transfer
obligation” within the meaning of Section 362(b) of the Bankruptcy Code and a “settlement payment,” within the meaning
of Section 546(e) of the Bankruptcy Code, (B) this Confirmation is a “swap agreement,” as such term is defined in Section
101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “transfer”
within the meaning of Section 546(g) of the Bankruptcy Code, (C) the rights given to MSCO under this Confirmation and under the Agreement
upon the occurrence of an Event of Default with respect Issuer constitute “contractual rights” to cause the liquidation, termination
or acceleration of or the offset or net out termination values under or in connection with a “securities contract” and a “swap
agreement”, (D) this Confirmation is a “master netting agreement’ as defined in 101(38A) of the Bankruptcy Code and
(E)MSCO is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e), 546(g), 548(d)(2),
555, 560, and 561 of the Bankruptcy Code and .



 


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



 


		(c)	Notwithstanding any provision of this Confirmation or any other agreement between the parties to the contrary,
neither the obligations of Issuer nor the obligations of MSCO hereunder are secured by any collateral, security interest, pledge or lien.



 


		(d)	Each party waives any and all rights it may have to set off obligations arising under the Agreement and
the Transaction against other obligations between the parties, whether arising under any other agreement, applicable law or otherwise.



 


		(e)	Notwithstanding anything to the contrary herein, MSCO may, by prior notice to Issuer, satisfy its obligation
to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries
of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate
number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered
on such Original Delivery Date. Any Shares delivered pursuant to this provision shall be included in the calculation of the Settlement
Amount.



 


		(f)	It shall constitute an Additional Termination Event with respect to which the Transaction is the sole
Affected Transaction and Issuer is the sole Affected Party if, at any time on or prior to the final Valuation Date, the price per Share
on the Exchange, as determined by the Calculation Agent, is at or below the Threshold Price (as specified in Schedule I).



 






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14.           Share Caps.


 


Notwithstanding any
other provision of this Confirmation or the Agreement to the contrary, in no event shall Issuer be required to deliver to MSCO in the
aggregate a number of Shares that exceeds the Share Cap as of the date of delivery (as specified in Schedule I). Notwithstanding anything
to the contrary in this Confirmation, in no event shall MSCO be required to deliver any Shares in excess of the Maximum Number of Shares
(as specified in Schedule I).


 


15.           Transfer and Assignment.


 


With the consent
of Issuer, such consent not to be unreasonably withheld following satisfaction of the requirements of this Section 16, MSCO may transfer
and assign its rights and obligations under this Confirmation, in whole but not in part, to any of its U.S. incorporated and domiciled
Affiliates of equivalent credit quality (or whose obligations are guaranteed, pursuant to a customary guaranty in form and substance reasonably
acceptable to Issuer, by an entity of equivalent credit quality). MSCO agrees to reimburse Issuer for its reasonable expenses (including
reasonable fees and expenses of outside counsel) incurred in connection with any transfer or assignment proposed by MSCO.


 


16.           Delivery of Cash


 


For the avoidance
of doubt, nothing in this Confirmation shall be interpreted as requiring Issuer to deliver cash in respect of the settlement of the Transactions
contemplated by this Confirmation following payment by Issuer of the relevant Prepayment Amount and any relevant, except in circumstances
where the required cash settlement thereof is permitted for classification of the contract as equity by ASC 815-40, Derivatives and Hedging
– Contracts in Entity’s Own Equity, as in effect on the relevant Trade Date (including, without limitation, where Issuer so
elects to deliver cash or fails timely to elect to deliver Shares or Alternative Delivery Units in respect of the settlement of such Transactions).


 


17.           Principal Version of Incorporation by Reference Rider.


 


The parties
agree that (i) to the extent that prior to the date hereof both parties have adhered to the 2018 ISDA U.S. Resolution Stay Protocol
(the “Protocol”), the terms of the Protocol are incorporated into and form a part of this Agreement, and for such
purposes this Agreement shall be deemed a Protocol Covered Agreement and each party shall be deemed to have the same status as
Regulated Entity and/or Adhering Party as applicable to it under the Protocol; (ii) to the extent that prior to the date hereof the
parties have executed a separate agreement the effect of which is to amend the qualified financial contracts between them to conform
with the requirements of the QFC Stay Rules (the “Bilateral Agreement”), the terms of the Bilateral Agreement are
incorporated into and form a part of this Agreement and each party shall be deemed to have the status of “Covered
Entity” or “Counterparty Entity” (or other similar term) as applicable to it under the Bilateral Agreement; or
(iii) if clause (i) and clause (ii) do not apply, the terms of Section 1 and Section 2 and the related defined terms (together, the
“Bilateral Terms”) of the form of bilateral template entitled “Full-Length Omnibus (for use between U.S. G-SIBs
and Corporate Groups)” published by ISDA on November 2, 2018 (currently available on the 2018 ISDA U.S. Resolution Stay
Protocol page at www.isda.org and, a copy of which is available upon request), the effect of which is to amend the qualified
financial contracts between the parties thereto to conform with the requirements of the QFC Stay Rules, are hereby incorporated into
and form a part of this Agreement, and for such purposes this Agreement shall be deemed a “Covered Agreement,” MSCO
shall be deemed a “Covered Entity” and Issuer shall be deemed a “Counterparty Entity.” In the event that,
after the date of this Agreement, both parties hereto become adhering parties to the Protocol, the terms of the Protocol will
replace the terms of this paragraph . In the event of any inconsistencies between this Agreement and the terms of the Protocol, the
Bilateral Agreement or the Bilateral Terms (each, the “QFC Stay Terms”), as applicable, the QFC Stay Terms will govern.
Terms used in this paragraph without definition shall have the meanings assigned to them under the QFC Stay Rules. For purposes of
this paragraph, references to “this Agreement” include any related credit enhancements entered into between the parties
or provided by one to the other. In addition, the parties agree that the terms of this paragraph shall be incorporated into any
related covered affiliate credit enhancements, with all references to Morgan Stanley replaced by references to the covered affiliate
support provider.


 






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“QFC Stay Rules”
means the regulations codified at 12 C.F.R. 252.2, 252.81–8, 12 C.F.R. 382.1-7 and 12 C.F.R. 47.1-8, which, subject to limited exceptions,
require an express recognition of the stay-and-transfer powers of the FDIC under the Federal Deposit Insurance Act and the Orderly Liquidation
Authority under Title II of the Dodd Frank Wall Street Reform and Consumer Protection Act and the override of default rights related directly
or indirectly to the entry of an affiliate into certain insolvency proceedings and any restrictions on the transfer of any covered affiliate
credit enhancements.


 


18.           Governing Law; Jurisdiction; Waiver.


 


THIS CONFIRMATION
AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK. THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE
IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS. NOTHING IN THIS PROVISION SHALL PROHIBIT A PARTY FROM BRINGING
AN ACTION TO ENFORCE A MONEY JUDGMENT IN ANY OTHER JURISDICTION.


 


EACH PARTY HEREBY
IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION
OR THE ACTIONS OF THE OTHER PARTY OR THE OTHER PARTY’S AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.


 


Remainder of Page
Intentionally Blank


 






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Please confirm that the foregoing
correctly sets forth the terms of our agreement by executing this Confirmation and returning it to us.


 


Confirmed as of
the date first written above:


 


	ATLAS AIR WORLDWIDE HOLDINGS, INC.	 	MORGAN STANLEY & CO. LLC
	 	 	 
	 	 	 
	By:	/s/
    Spencer Schwartz	 	By:	/s/
    Darren McCarley
	Name:  Spencer Schwartz	 	Name:  Darren McCarley
	Title:  Executive Vice President
and Chief Financial Officer	 	Title:  Managing Director


 






     


     


    

 


SCHEDULE I


 





For the purposes
of the Transaction, the following terms shall have the following values or meanings:


 


	Trade Date:	February 18, 2022
	 	 
	Prepayment Date:	[               ]
	 	 
	Initial Share Delivery Date:	The Prepayment Date
	 	 
	Calculation Period Start Date:	[               ]
	 	 
	Calculation Dates:	Each Scheduled Trading Day during the Calculation Period.
	 	 
	Scheduled Valuation Date:	[               ]
	 	 
	Lock-Out Date:	[               ]
	 	 
	Prepayment Amount:	USD [_______]
	 	 
	Discount:	[               ]
	 	 
	Initial Shares:	[               ]; provided that  if, in connection with the Transaction, MSCO is unable, after using commercially reasonable efforts, to borrow or otherwise acquire a number of Shares equal to the Initial Shares for delivery to Issuer on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that MSCO is able to so borrow or otherwise acquire, and thereafter MSCO shall continue to use commercially reasonable efforts to borrow or otherwise acquire a number of Shares, at a stock borrow cost no greater than the Initial Stock Loan Rate, equal to the shortfall in the Initial Share Delivery and to deliver such additional Shares as soon as reasonably practicable.  All Shares delivered to Issuer in respect of the Transaction pursuant to this paragraph shall be the “Initial Shares” for purposes of “Settlement Amount.”
	 	 
	Buyer Share Settlement Percentage:	[               ]
	 	 
	Ordinary Dividend Amount:	USD 0.00
	 	 
	 	For any Dividend with an ex-dividend date occurring on or after the Scheduled Valuation Date: USD 0.00
	 	 
	Scheduled Ex-Dividend Dates:	There shall be no Scheduled Ex-Dividend Dates during the term of the Transaction
	 	 
	Threshold Price:  	USD [__]
	 	 
	Floor Price:	USD 0.01
	 	 
	Initial Stock Loan Rate:	[               ]
	 	 
	Maximum Stock Loan Rate:	[               ]
	 	 
	Share Cap:	As of any date, [    ] Shares 
	 	 
	Maximum Number of Shares:	[Half the outstanding Shares]
	 	 
	Specified ADTV Percentage:	[  ]% of the ADTV (as defined in Rule 10b-18(a)(1))