Exhibit 10.1

 

Confidential portions of this exhibit have been omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission. Omissions are designated by the symbol [*]

 

Goldman Sachs & Co. LLC

200 West Street

New York, New York 10282-2198

Tel:  212-902-1000

 

May 30, 2018

 

Fixed Dollar Accelerated Share Repurchase Transaction (Ref. No. [        ])

 

Spirit AeroSystems Holdings, Inc.
 3801 South Oliver 
 Wichita, Kansas 67210



Dear Sir/Madam:

 

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the Transaction entered into between Goldman Sachs & Co. LLC (“Dealer”) and Spirit AeroSystems 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 Dealer 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 Dealer and Issuer had executed an agreement in such form without any Schedule but with the following elections: (i) the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Dealer, with a “Threshold Amount” of 3% of shareholders’ equity of Dealer’s ultimate parent as of the Trade Date (provided that (a) the phrase “, or becoming capable at such time of being declared,” shall be deleted from clause (1) of such Section 5(a)(vi) of the Agreement, (b) “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement and (c) the following sentence shall be added to the end of Section 5(a)(vi) of the Agreement: “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission of an administrative or operational nature; (y) funds were available to enable the relevant party to make the payment when due; and (z) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.”); and (ii) the Termination Currency shall be USD.

 

The Transaction shall be the only transaction under the Agreement.  If there exists any ISDA Master Agreement between Dealer and Issuer or any confirmation or other agreement between Dealer and Issuer pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and Issuer, then, notwithstanding anything to the contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to which Dealer 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 and the occurrence of any Event of Default or Termination Event

 











 

under the Agreement with respect to either party or the Transaction shall not, by itself, give rise to any right or obligation under any such other agreement or deemed 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:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
Class A Common Stock, par value USD 0.01 per share, of   Issuer (Ticker: SPR)
    
	
 
    	
 
    	
 
    
	
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 and   (ii) the Floor Price minus   (B) the Discount.
    
	
 
    	
 
    	
 
    
	
Discount:
    	
 
    	
As specified in Schedule I
    
	
 
    	
 
    	
 
    
	
Floor Price:
    	
 
    	
As specified in Schedule I
    
	
 
    	
 
    	
 
    
	
10b-18 VWAP:
    	
 
    	
On any Exchange Business Day, 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 Exchange Business Day as reported on the   Bloomberg screen entitled “SPR <Equity> AQR SEC” or any successor   page (without regard to pre-open or after-hours trading outside of any   regular trading session for such Exchange Business Day or block trades (as   defined in Rule 10b-18(b)(5) of the Securities Exchange Act of   1934, as amended (the “Exchange Act”))   on such Exchange Business Day), or, if the price displayed on such screen is   unavailable or clearly erroneous, as determined by the Calculation Agent.
    
	
 
    	
 
    	
 
    
	
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
    




 

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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
    
	
 
    	
 
    	
 
    
	
Prepayment Amount:
    	
 
    	
As specified in Schedule I
    
	
 
    	
 
    	
 
    
	
Prepayment Date:
    	
 
    	
As specified in Schedule I
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
New York Stock Exchange
    
	
 
    	
 
    	
 
    
	
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 Calculation Date in the Calculation Period or   the Buyer Settlement Valuation Period (each such scheduled Calculation Date,   an “Observation Day”) is a Disrupted Day,   the Calculation Agent may 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 and (y) determine the Forward Price or   Buyer Settlement Price, as applicable, 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   Day during the Calculation Period) 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 Calculation Date for every Observation Day   that is a Disrupted Day during the Calculation Period or Buyer
    




 

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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.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Any Exchange Business 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 an Exchange Business Day. If a closure of the Exchange prior   to its normal close of trading on any Exchange Business Day is scheduled following   the date hereof, then such Exchange Business Day shall be deemed to be a   Disrupted Day in full.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If a Disrupted Day occurs (or is deemed to occur) on an   Observation Day during the Calculation Period or the Buyer Settlement   Valuation Period, as the case may be, and each of the five immediately   following Observation 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 Observation Day that is a 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 using its good faith and   commercially reasonable estimate of the value of the Shares on such day based   on the volume, historical volatility 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 Dealer’s   election in accordance with the immediately succeeding paragraph.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dealer shall have the right, in its discretion, to accelerate   the Valuation Date, for the whole Transaction or only a part thereof, to any Calculation   Date 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 9:00 p.m., New York City time, on the   Calculation Date immediately following the accelerated Valuation Date (the “Acceleration Date”). Dealer shall specify in each   Acceleration Notice the portion of the Prepayment Amount that is subject to   acceleration. If the portion of the Prepayment Amount that is subject to
    




 

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acceleration is less than the full remaining Prepayment Amount,   then the Calculation Agent shall 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).
    
	
 
    	
 
    	
 
    
	
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, then the Buyer Settlement   Provisions in Annex A hereto 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.
    
	
 
    	
 
    	
 
    
	
Other Applicable Provisions:
    	
 
    	
The last sentence of Section 9.2 and Sections 9.8, 9.9,   9.10, 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 adjust any   relevant terms of the Transaction as the
    




 

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Calculation Agent determines appropriate to account for the   economic effect on the Transaction of such event.
    
	
 
    	
 
    	
 
    
	
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 (and any   amount payable in respect of such Additional Termination Event shall be   determined without regard to the difference between actual dividends declared   and expected dividends as of the Trade Date) 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. Any election to apply clause   (x) with respect to a Different Dividend shall be made within ten   (10) Local Business Days of the declaration 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 make such adjustment to   the exercise, settlement, payment or any other terms of the Transaction as   the Calculation Agent determines appropriate to account for the economic   effect on the Transaction of such event.  For   the avoidance of doubt, any such adjustments shall account for the
    




 

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economic effect on the Transaction of the timing of any such   Dividend.
    
	
 
    	
 
    	
 
    
	
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 last day of the Potential Purchase Period   (as defined below).
    
	
 
    	
 
    	
 
    
	
Method of Adjustment:
    	
 
    	
Calculation Agent Adjustment
    
	
 
    	
 
    	
 
    
	
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; provided that   (x) Section 12.1(d) of the Equity Definitions shall be amended   by replacing “voting shares of the Issuer” in the fourth line thereof with   “Shares”, (y) Section 12.1(e) of the Equity Definitions shall   be amended by replacing “voting shares” in the first line thereof with   “Shares” and (z) Section 12.1(l) of the Equity Definitions   shall be amended by replacing “voting shares” in the fifth line thereof with   “Shares”.
    
	
 
    	
 
    	
 
    
	
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
    




 

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immediately re-listed, re-traded or re-quoted on any such   exchange or quotation system, such exchange or quotation system shall   thereafter be deemed to be the Exchange.
    
	
 
    	
 
    	
 
    
	
ADDITIONAL DISRUPTION EVENTS:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Change in Law:
    	
 
    	
Applicable; provided that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended by   (i) replacing the phrase “the interpretation” in the third line thereof   with the phrase “, or 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; provided further that (i) any determination as to   whether (A) the adoption of or any change in any applicable law or   regulation (including, for the avoidance of doubt and without limitation,   (x) any tax law or (y) adoption or promulgation of new regulations   authorized or mandated by existing statute) or (B) the promulgation of   or any change in the interpretation by any court, tribunal or regulatory   authority with competent jurisdiction of any applicable law or regulation   (including any action taken by a taxing authority), in each case, constitutes   a “Change in Law” shall be made without regard to Section 739 of the   Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any   similar legal certainty provision in any legislation enacted, or rule or   regulation promulgated, on or after the Trade Date, and   (ii) Section 12.9(a)(ii) of the Equity Definitions is hereby   amended by replacing the parenthetical beginning after the word “regulation”   in the second line thereof with the 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)”.   Notwithstanding anything to the contrary in the Equity Definitions, a Change   in Law described in clause (Y) of Section 12.9(a)(ii) of the   Equity Definitions shall not constitute a Change in Law and instead shall   constitute an Increased Cost of Hedging as described in   Section 12.9(a)(vi) of the Equity Definitions.
    
	
 
    	
 
    	
 
    
	
Failure to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Insolvency Filing:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging Disruption:
    	
 
    	
Applicable; provided that   any Hedging Disruption that would occur solely due to the deterioration of   the creditworthiness of the Hedging Party relative to other comparable   financial institutions shall not be deemed a Hedging Disruption.
    




 

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Increased Cost of Hedging:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Loss of Stock Borrow:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Maximum Stock Loan Rate:
    	
 
    	
As specified in Schedule I
    
	
 
    	
 
    	
 
    
	
Increased Cost of Stock Borrow:
    	
 
    	
Applicable; provided that   any Increased Cost of Stock Borrow that would occur solely due to the   deterioration of the creditworthiness of the Hedging Party relative to other   comparable financial institutions shall not be deemed an Increased Cost of   Stock Borrow.
    
	
 
    	
 
    	
 
    
	
Initial Stock Loan Rate:
    	
 
    	
As specified in Schedule I
    
	
 
    	
 
    	
 
    
	
Determining Party:
    	
 
    	
For all applicable events, Dealer. When making any determination   or calculation as “Determining Party,” Dealer shall be bound by the same   obligations relating to required acts of the Calculation Agent as set forth   in Section 1.40 of the Equity Definitions and this Confirmation as if   the Determining Party were the Calculation Agent.
    
	
 
    	
 
    	
 
    
	
Hedging Party:
    	
 
    	
For all applicable events, Dealer. When making any determination   or calculation as “Hedging Party,” Dealer shall be bound by the same   obligations relating to required acts of the Calculation Agent as set forth   in Section 1.40 of the Equity Definitions and this Confirmation as if   the Hedging Party were the Calculation Agent.
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements and Acknowledgments
    	
 
    	
 
    
	
Regarding Hedging Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional Acknowledgments:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging Adjustments:
    	
 
    	
Whenever the Calculation Agent is called upon to make a   determination, calculation or adjustment pursuant to the terms of this   Confirmation or the Equity Definitions to take into account the effect of an   event, the Calculation Agent shall make such determination, calculation or   adjustment by reference to the effect of such event on Dealer with the   Calculation Agent assuming that Dealer maintains a commercially reasonable   Hedge Position in respect of the Transaction.
    
	
 
    	
 
    	
 
    
	
3.                                      Calculation   Agent:
    	
 
    	
Dealer; provided that   following the occurrence of an Event of Default pursuant to   Section 5(a)(vii) of the Agreement with respect to which Dealer is   the Defaulting Party, Issuer may appoint a third-party independent,   nationally recognized dealer in over-the-counter corporate equity derivatives   to act as Calculation Agent. For the avoidance of doubt, all calculations and   determinations of the Calculation Agent shall be made in
    




 

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good faith and in a commercially reasonable manner. Following   any determination or calculation by the Calculation Agent hereunder, upon a   written request by Issuer, the Calculation Agent shall promptly (but in any   event no later than five (5) Exchange Business Days following Dealer’s   receipt of such written request) provide to Issuer by e-mail to the e-mail   address provided by Issuer in such written request a report (in a commonly   used file format for the storage and manipulation of financial data)   displaying in reasonable detail the basis for such determination or   calculation, as the case may be, it being understood and agreed that the   Calculation Agent shall not be obligated to disclose any proprietary or   confidential models or any other confidential or proprietary information, in   each case, used by it for such determination or calculation.
    




 

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 to Dealer:

 

Chase Manhattan Bank New York

For A/C Goldman Sachs & Co. LLC

A/C #930-1-011483

ABA: 021-000021

 

(d)                     Account for delivery of Shares to Dealer:

 

To be provided separately.

 

(e)                      For purposes of this Confirmation:

 

(i)             Address for notices or communications to Issuer:

 

Spirit AeroSystems Holdings, Inc.

3801 South Oliver

Wichita, Kansas 67210

Attention: Rhonda Harkins

Telephone: [*]

Email: [*]

 




*This information has been omitted based on a request for confidential treatment. The omitted portions have been separately filed with the Securities and Exchange Commission.

 

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(ii)          Address for notices or communications to Dealer:

 

Goldman Sachs & Co. LLC

200 West Street

New York, NY 10282-2198

Attention: Simon Watson, Equity Capital Markets

Telephone: 212-902-2317

Facsimile: 212-256-5738

Email: simon.watson@ny.ibd.email.gs.com

 

With a copy to:

 

Attention: Daniel Josephs, Equity Capital Markets

Telephone: +1-212-902-8193

Facsimile: +1-917-977-3943

Email: daniel.josephs@gs.com

 

And email notification to the following address:

Eq-derivs-notifications@am.ibd.gs.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 “an economic effect on the Shares or the relevant Transaction”.

 

(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 an economic effect on the Transaction and, if so, will (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 the words “(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 “(including adjustments to account for changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares)”.

 

(c)                                  Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “any other event that may have a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “any other event related to the Issuer, the Shares or the Transaction that has a material economic effect on the Shares or the relevant Transaction”.

 

(d)                                 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 “Dealer will have the right to cancel the Transaction,”.

 

(e)                                  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.

 

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(f)                                   Section 12.9(b)(v) of the Equity Definitions is hereby amended by (A) adding the phrase “; provided that the Non-Hedging Party may not elect to terminate the Transaction unless the Non-Hedging Party represents and warrants to the Hedging Party in writing on the date it notifies the Hedging Party of such election that, as of such date, the Non-Hedging Party is not aware of any material nonpublic information regarding Issuer or the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws” immediately prior to the period at the end of subsection (C); and (B) deleting clause (X) in the final sentence.

 

(g)                                  Section 12.9(b)(vi) of the Equity Definitions is hereby amended by adding the phrase “; provided that the Non-Hedging Party may not elect to terminate the Transaction unless the Non-Hedging Party represents and warrants to the Hedging Party in writing on the date it notifies the Hedging Party of such election that, as of such date, the Non-Hedging Party is not aware of any material nonpublic information regarding Issuer or the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws” immediately prior to the period 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 Equity Definitions, as the case may be, unless Issuer makes an election to the contrary no later than the Early Termination Date or the date on which such Transaction is terminated or cancelled (which election by Issuer shall be deemed to be a representation to Dealer 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), in which case Issuer or Dealer, 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.  In determining the number of Shares (or Alternative Delivery Units) required to be delivered under this provision, the Calculation Agent may take into account a number of factors, including, without limitation, 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, if such delivery is made by Dealer, the Calculation Agent shall take into account the prices at which Dealer purchases Shares (or Alternative Delivery Units) to fulfill its delivery obligations under this Section 6; provided that the parties hereby agree that such purchases shall be made solely on Calculation Dates; provided further that in determining the composition of any Alternative Delivery Unit, if the relevant 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. If delivery of Shares or Alternative Delivery Units, as the case may be, pursuant to this Section 6 is to be made by Issuer, paragraphs 2 through 8 of Annex A hereto shall apply as if (A) such delivery were a settlement of the Transaction to which Net Share Settlement applied, (B) the Buyer Cash Settlement Payment Date were the Early Termination Date or the date of early cancellation or termination, as the case may

 

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be, and (C) the Forward Cash Settlement Amount were equal to (x) zero minus (y) the Payment Amount owed by Issuer.

 

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 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 (which adjustments shall be limited to adjustments to account for changes in prices of the Shares, value of any commercially reasonable Hedge Positions, volatility, interest rates, stock loan rate, liquidity and/or any other commercially reasonable option pricing inputs relevant to the Shares or such Transaction). 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 judgment of the Calculation Agent is reasonably likely to result in an Acquisition Transaction (it being understood and agreed that in determining whether such announcement is reasonably likely to result in an Acquisition Transaction, the Calculation Agent may take into consideration the effect of such announcement on the Shares and/or options relating to the Shares) or (v) any announcement subsequent to an Acquisition Transaction Announcement relating to a material 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 “15%” 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 15% 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 Exchange Act or otherwise).

 

8.                                      Dealer Adjustments.

 

In the event that Dealer reasonably determines, based on the 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

 

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requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer, and including, without limitation, Rule 10b-18, Rule 10b-5, Regulations 13D-G and Regulations 14D-E, each under the Exchange Act (but provided that any such policies and procedures are related to legal, regulatory or self-regulatory issues and are generally applicable hereunder and in similar situations and applied to the Transaction in a non-discriminatory manner), for Dealer 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 Dealer would otherwise purchase or engage in in order to maintain, establish or unwind a commercially reasonable hedge position (such determination, a “Regulatory Disruption”) on any Calculation Date(s) on or prior to the conclusion of the Potential Purchase Period, then Dealer may, in its discretion, elect that a Market Disruption Event shall be deemed to have occurred and will be continuing on any such Calculation Date(s) and each such Calculation Date shall be a Disrupted Day (subject to “Market Disruption Event” above).

 

9.                                      Covenants.

 

Issuer covenants and agrees that:

 

(a)                                 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 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 or exercisable for Shares) without the prior written approval of Dealer, except pursuant to any Other Specified Repurchase Agreement (as defined below), or take any other action that would cause the purchase by Dealer 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).  “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 date five Calculation Dates immediately following the last day of the Calculation Period and (B) the Scheduled 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 Dealer in its commercially reasonable discretion and communicated to Issuer no later than the Exchange Business Day immediately following such date (or, in the absence of such communication, the date that is five Calculation Dates immediately following such date). “Other Specified Repurchase Agreement” means any other fixed dollar accelerated share repurchase transaction entered into on the Trade Date that is intended to comply with the requirements of Rule 10b5-1(c) under the Exchange Act and with calculation dates (however defined) that do not overlap with the Calculation Dates hereunder.

 

(b)                                 It will comply with all laws, rules and regulations applicable to it (including, without limitation, the Securities Act of 1933, as amended (the “Securities Act”) and the Exchange Act) 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 Dealer 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 Dealer 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 Dealer and its affiliates may continue to conduct

 

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such transactions during the term of this Confirmation.  Without limiting the generality of the foregoing, Issuer acknowledges that Dealer 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.

 

(d)                                 Neither it nor any 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 are 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)                                   Promptly following the announcement of a Merger Transaction (but in any event not later than 7:00 a.m., New York City time, on the day following such announcement (or, if such announcement is made prior to the open of the regular trading session on the Exchange for the Shares on a Scheduled Trading Day, not later than such open of the regular trading session)), Issuer shall provide Dealer 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 Dealer that such information is true and correct.  Issuer understands that Dealer will use this information in calculating the trading volume for purposes of Rule 10b-18.  In addition, Issuer shall promptly provide written notice to Dealer 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)                                  Any Shares or Alternative Delivery Units delivered to Dealer may be transferred by and among Dealer and its affiliates and Issuer shall effect such transfer without any further action by Dealer.

 

10.                               Representations, Warranties, Acknowledgments, and Agreements.

 

(a)                                 Issuer hereby represents and warrants to Dealer on the date hereof and on and as of the Initial Share Delivery Date that:

 

(i)                                     None of Issuer and its officers and directors is 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 Shares (including, without limitation, with respect to any securities convertible or exchangeable into the Shares) during the term of this Confirmation. For the avoidance of doubt, the

 

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parties hereto acknowledge that the entry into any Other Specified Repurchase Agreement shall not fall within the ambit of the previous sentence.  Without limiting the generality of the foregoing, all reports and other documents filed by Issuer 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.

 

(ii)                                  The transactions contemplated by this Confirmation have been authorized under 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) or in connection with a future issuance of securities.

 

(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 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 and the Prepayment Date, and after giving effect to the Transaction 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.

 

(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.

 

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(viii)                        No state or local (including non-U.S. jurisdictions) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares.

 

(ix)                              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. Issuer will notify Dealer if any of the statements in the preceding sentence ceases to be true.

 

(b)                                 Issuer acknowledges and agrees that the Initial Shares may be sold short to Issuer. Issuer further acknowledges and agrees that Dealer 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 Dealer will be conducted independently of Issuer by Dealer as principal for its own account.  All of the actions to be taken by Dealer in connection with the Transaction shall be taken by Dealer 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)(A) and (B) of the Exchange Act, and the parties agree that this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c) under the Exchange Act, 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 Dealer 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 Dealer or its affiliates, other than employees identified by Dealer 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 this Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c) 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)                                 Dealer covenants and agrees to use commercially reasonable efforts, during the Calculation Period and any Buyer Settlement Valuation Period for the Transaction, to make all purchases of Shares in connection with the Transaction in a manner that would comply with the limitations set forth in clauses (b)(2), (b)(3), (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 Dealer’s control; provided that, during the Calculation Period, the foregoing agreement shall not apply to purchases made to dynamically hedge for Dealer’s own account or the account of its affiliate(s) the optionality arising under the Transaction (including, for the avoidance of doubt, timing optionality).

 

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(e)                                  Each of Issuer and Dealer 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.

 

(f)                                   Each of Issuer and Dealer acknowledges that the offer and sale of the Transaction is intended to be exempt from registration under the Securities Act by virtue of Section 4(a)(2) thereof.  Accordingly, each party 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.

 

11.                               Acknowledgements of Issuer Regarding Hedging and Market Activity.

 

Issuer agrees, understands and acknowledges that:

 

(a)                                 During the term of the Transaction, Dealer and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative transactions in order to establish, maintain, adjust or unwind its Hedge Position with respect to the Transaction.

 

(b)                                 Dealer 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, including acting as agent or as principal and for its own account or on behalf of customers.

 

(c)                                  Dealer 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 Dealer 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.

 

(e)                                  The Transaction is a derivatives transaction in which it has granted Dealer an option; Dealer may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Issuer under the terms of the Transaction.

 

12.                               [Reserved].

 

13.                               Other Provisions.

 

(a)                                 Issuer agrees and acknowledges that Dealer 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” 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

 

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connection herewith is a “transfer” within the meaning of Section 546(g) of the Bankruptcy Code, and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, (C) the rights given to Dealer under this Confirmation and under the Agreement upon the occurrence of an Event of Default or Termination Event with respect Issuer or any Extraordinary Event that results in the termination or cancellation of the Transaction, in each case, constitute “contractual rights” to cause the liquidation, termination or acceleration of or in connection with a “securities contract” and a “swap agreement” and (D) Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 556, 560, and 561 of the Bankruptcy Code.

 

(b)                                 Dealer acknowledges and agrees that, notwithstanding anything to the contrary in the Agreement or this Confirmation, this Confirmation is not intended to convey to Dealer 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 Dealer’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 Dealer’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 Dealer 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, Dealer may, other than with respect to the Initial Share Delivery Date, 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).

 

(g)                                  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 Transaction following payment by Issuer of the Prepayment Amount, 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 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 the Transaction or in those circumstances in which holders of the Shares would also receive cash).

 

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14.                               Maximum Number of Shares.

 

Notwithstanding anything to the contrary in this Confirmation, in no event shall Dealer be required to deliver any Shares, or any Shares or other securities comprising Alternative Delivery Units, in excess of the Maximum Number of Shares (as specified in Schedule I).

 

15.                               Calculations and Payments upon Early Termination.

 

The parties acknowledge and agree that in calculating (a) the Close-Out Amount pursuant to Section 6 of the Agreement and (b) the amount due upon cancellation or termination of the Transaction (whether in whole or in part) pursuant to Article 12 of the Equity Definitions as a result of an Extraordinary Event, Dealer may (but need not) determine such amount based on expected losses assuming a commercially reasonable (including without limitation with regard to reasonable legal and regulatory guidelines and taking into account the existence of any Other Specified Repurchase Agreement) risk bid were used to determine loss to avoid awaiting the delay associated with closing out any hedge or related trading position in a commercially reasonable manner prior to or promptly following the designation of an Early Termination Date. Notwithstanding anything to the contrary herein or in Section 6(d)(ii) of the Agreement or in the Equity Definitions, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement or other termination or cancellation of the Transaction will be payable on the day that notice of the amount payable is effective; provided that if Issuer elects to receive Shares or Alternative Delivery Units in accordance with Section 6, such Shares or Alternative Delivery Units shall be delivered on a date selected by Dealer as promptly as practicable.

 

16.                               Transfer and Assignment.

 

Dealer may transfer or assign its rights and obligations hereunder and under the Agreement, in whole or in part, to any of its affiliates whose obligations are guaranteed by The Goldman Sachs Group, Inc. without the consent of Issuer.

 

17.                               Dealer Purchases.

 

During the Potential Purchase Period, Dealer shall not purchase any Shares or enter into any transactions that, in whole or in part, have the effect of giving Dealer “long” economic exposure to the Shares in connection with the Transaction on any Exchange Business Day that is not a Calculation Date; provided that (i) Dealer shall be permitted on any day to exercise options relating to Shares or deliver or receive Shares upon exercise of options relating to Shares, in either case so long as such options were purchased or written (x) in compliance with this sentence and (y) to hedge volatility risk with respect to the Transaction and (ii) during the period (if any) from and including the Trade Date to and including the Exchange Business Day immediately following the Trade Date, Dealer shall be permitted to enter into delta-neutral volatility hedging transactions so long as such transactions (with such transactions entered into with the same counterparty viewed in the aggregate) do not result in an immediate increase in Dealer’s net “long” exposure to the Shares.

 

18.                               Governing Law; Jurisdiction; Waiver.

 

THIS CONFIRMATION AND THE AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS CONFIRMATION OR THE AGREEMENT 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 TO THIS CONFIRMATION AND THE AGREEMENT 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

 

20












 

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.

 

19.                               Counterparts.

 

This Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Confirmation by signing and delivering one or more counterparts.

 

20.                               Offices.

 

(a)                                 The Office of Dealer for the Transaction is:  200 West Street, New York, New York 10282-2198.

 

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

 

Remainder of Page Intentionally Blank

 

21











 

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

 

Confirmed as of the date first written above:

 

	
Spirit AeroSystems   Holdings, Inc.
    	
GOLDMAN SACHS & CO. LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Sanjay Kapoor
    	
 
    	
By:
    	
/s/ Gianfranco Bartellino
    
	
Name: Sanjay Kapoor
    	
Name: Gianfranco Bartellino
    
	
Title: Executive Vice President   and Chief Financial Officer
    	
Title: Vice President
    


 

[Signature Page to ASR Confirmation (GS)]

 











 

SCHEDULE I

 

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

 

	
Trade Date:
    	
 
    	
May 30, 2018
    
	
 
    	
 
    	
 
    
	
Prepayment Date:
    	
 
    	
June 1, 2018
    
	
 
    	
 
    	
 
    
	
Initial Share Delivery Date:
    	
 
    	
June 1, 2018
    
	
 
    	
 
    	
 
    
	
Calculation Period Start Date:
    	
 
    	
June 1, 2018
    
	
 
    	
 
    	
 
    
	
Calculation Dates:
    	
 
    	
Each day that is both an Exchange Business Day and is set forth   as a Specified Date in Schedule II. Notwithstanding anything to the contrary   in this Confirmation, the Equity Definitions or the Agreement, the   Calculation Agent shall not adjust the dates identified as Specified Dates in   Schedule II.
    
	
 
    	
 
    	
 
    
	
Scheduled Valuation Date:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
Lock-Out Date:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    
	
Prepayment Amount:
    	
 
    	
USD 362,500,000

 
    
	
 
    	
 
    	
 
    
	
Discount:
    	
 
    	
USD [*]
    
	
 
    	
 
    	
 
    
	
Initial Shares:
    	
 
    	
3,645,587 Shares; provided that   if, in connection with the Transaction, Dealer 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 Dealer is able   to so borrow or otherwise acquire, and thereafter Dealer 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.”
    
	
 
    	
 
    	
 
    
	
Ordinary Dividend Amount:
    	
 
    	
USD 0.12
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For any Dividend with an ex-dividend date occurring on or after   the Scheduled Valuation Date: USD 0.00
    
	
 
    	
 
    	
 
    
	
Scheduled Ex-Dividend Dates:
    	
 
    	
Each of June 15, 2018; September 14, 2018; and   December 14, 2018
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The occurrence of a Buyer Election Date, if any, shall be a   Scheduled Ex-Dividend Date.
    
	
 
    	
 
    	
 
    
	
Threshold Price:
    	
 
    	
USD [*]
    


 




*This information has been omitted based on a request for confidential treatment. The omitted portions have been separately filed with the Securities and Exchange Commission.

 

1











 

	
Floor Price:
    	
 
    	
USD [*]
    
	
 
    	
 
    	
 
    
	
Initial Stock Loan Rate:
    	
 
    	
[*] bps.
    
	
 
    	
 
    	
 
    
	
Maximum Stock Loan Rate:
    	
 
    	
[*] bps.
    
	
 
    	
 
    	
 
    
	
Share Cap:
    	
 
    	
8,577,851
    
	
 
    	
 
    	
 
    
	
Maximum Number of Shares:
    	
 
    	
56,892,818
    


 




*This information has been omitted based on a request for confidential treatment. The omitted portions have been separately filed with the Securities and Exchange Commission.

 

2











 

SCHEDULE II

 

Specified Dates

 

Each of the following shall be a Specified Date for purposes of the Transaction:

 

	
1.
    	
 
    	
[*]
    	
 
    	
2.
    	
 
    	
[*]
    	
 
    	
3.
    	
 
    	
[*]
    
	
4.
    	
 
    	
[*]
    	
 
    	
5.
    	
 
    	
[*]
    	
 
    	
6.
    	
 
    	
[*]
    
	
7.
    	
 
    	
[*]
    	
 
    	
8.
    	
 
    	
[*]
    	
 
    	
9.
    	
 
    	
[*]
    
	
10.
    	
 
    	
[*]
    	
 
    	
11.
    	
 
    	
[*]
    	
 
    	
12.
    	
 
    	
[*]
    
	
13.
    	
 
    	
[*]
    	
 
    	
14.
    	
 
    	
[*]
    	
 
    	
15.
    	
 
    	
[*]
    
	
16.
    	
 
    	
[*]
    	
 
    	
17.
    	
 
    	
[*]
    	
 
    	
18.
    	
 
    	
[*]
    
	
19.
    	
 
    	
[*]
    	
 
    	
20.
    	
 
    	
[*]
    	
 
    	
21.
    	
 
    	
[*]
    
	
22.
    	
 
    	
[*]
    	
 
    	
23.
    	
 
    	
[*]
    	
 
    	
24.
    	
 
    	
[*]
    
	
25.
    	
 
    	
[*]
    	
 
    	
26.
    	
 
    	
[*]
    	
 
    	
27.
    	
 
    	
[*]
    
	
28.
    	
 
    	
[*]
    	
 
    	
29.
    	
 
    	
[*]
    	
 
    	
30.
    	
 
    	
[*]
    
	
31.
    	
 
    	
[*]
    	
 
    	
32.
    	
 
    	
[*]
    	
 
    	
33.
    	
 
    	
[*]
    
	
34.
    	
 
    	
[*]
    	
 
    	
35.
    	
 
    	
[*]
    	
 
    	
36.
    	
 
    	
[*]
    
	
37.
    	
 
    	
[*]
    	
 
    	
38.
    	
 
    	
[*]
    	
 
    	
39.
    	
 
    	
[*]
    
	
40.
    	
 
    	
[*]
    	
 
    	
41.
    	
 
    	
[*]
    	
 
    	
42.
    	
 
    	
[*]
    
	
43.
    	
 
    	
[*]
    	
 
    	
44.
    	
 
    	
[*]
    	
 
    	
45.
    	
 
    	
[*]
    
	
46.
    	
 
    	
[*]
    	
 
    	
47.
    	
 
    	
[*]
    	
 
    	
48.
    	
 
    	
[*]
    
	
49.
    	
 
    	
[*]
    	
 
    	
50.
    	
 
    	
[*]
    	
 
    	
51.
    	
 
    	
[*]
    
	
52.
    	
 
    	
[*]
    	
 
    	
53.
    	
 
    	
[*]
    	
 
    	
54.
    	
 
    	
[*]
    
	
55.
    	
 
    	
[*]
    	
 
    	
56.
    	
 
    	
[*]
    	
 
    	
57.
    	
 
    	
[*]
    
	
58.
    	
 
    	
[*]
    	
 
    	
59.
    	
 
    	
[*]
    	
 
    	
60.
    	
 
    	
[*]
    
	
61.
    	
 
    	
[*]
    	
 
    	
62.
    	
 
    	
[*]
    	
 
    	
63.
    	
 
    	
[*]
    
	
64.
    	
 
    	
[*]
    	
 
    	
65.
    	
 
    	
[*]
    	
 
    	
66.
    	
 
    	
[*]
    
	
67.
    	
 
    	
[*]
    	
 
    	
68.
    	
 
    	
[*]
    	
 
    	
69.
    	
 
    	
[*]
    
	
70.
    	
 
    	
[*]
    	
 
    	
71.
    	
 
    	
[*]
    	
 
    	
72.
    	
 
    	
[*]
    
	
73.
    	
 
    	
[*]
    	
 
    	
74.
    	
 
    	
[*]
    	
 
    	
75.
    	
 
    	
[*]
    
	
76.
    	
 
    	
[*]
    	
 
    	
77.
    	
 
    	
[*]
    	
 
    	
78.
    	
 
    	
[*]
    
	
79.
    	
 
    	
[*]
    	
 
    	
80.
    	
 
    	
[*]
    	
 
    	
81.
    	
 
    	
[*]
    


 




*This information has been omitted based on a request for confidential treatment. The omitted portions have been separately filed with the Securities and Exchange Commission.

 

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82.
    	
 
    	
[*]
    	
 
    	
83.
    	
 
    	
[*]
    	
 
    	
84.
    	
 
    	
[*]
    
	
85.
    	
 
    	
[*]
    	
 
    	
86.
    	
 
    	
[*]
    	
 
    	
87.
    	
 
    	
[*]
    
	
88.
    	
 
    	
[*]
    	
 
    	
89.
    	
 
    	
[*]
    	
 
    	
90.
    	
 
    	
[*]
    
	
91.
    	
 
    	
[*]
    	
 
    	
92.
    	
 
    	
[*]
    	
 
    	
93.
    	
 
    	
[*]
    


 

If necessary, the Calculation Agent may add additional Specified Dates beginning with [*] and continuing with every other Scheduled Trading Day thereafter.

 




*This information has been omitted based on a request for confidential treatment. The omitted portions have been separately filed with the Securities and Exchange Commission.

 

2











 

ANNEX A

 

BUYER SETTLEMENT PROVISIONS

 

1.                                      The following Buyer Settlement Provisions shall apply to the Transaction to the extent indicated under the Confirmation:

 

	
Settlement Currency:
    	
 
    	
USD
    
	
 
    	
 
    	
 
    
	
Settlement Method Election:
    	
 
    	
Applicable; provided that   (i) Section 7.1 of the Equity Definitions is hereby amended by   deleting the word “Physical” in the sixth line thereof and replacing   it with the words “Net Share” and (ii) the Electing Party may   make a settlement method election only if the Electing Party represents and   warrants to Dealer in writing on the date it notifies Dealer of its election   that, as of such date, the Electing Party is not aware of any material nonpublic   information concerning Issuer or the Shares and is electing the settlement   method in good faith and not as part of a plan or scheme to evade compliance   with the federal securities laws.
    
	
 
    	
 
    	
 
    
	
Electing Party:
    	
 
    	
Buyer
    
	
 
    	
 
    	
 
    
	
Buyer Election Date:
    	
 
    	
In respect of any Valuation Date, the earlier of   (i) the Scheduled Valuation Date and (ii) the second Exchange   Business Day immediately following the relevant Acceleration Date (if any)   (in which case the election under Section 7.1 of the Equity Definitions   shall be made no later than 10 minutes prior to the open of trading on the   Exchange on such second Exchange Business Day), as the case may be.
    
	
 
    	
 
    	
 
    
	
Default Settlement Method:
    	
 
    	
Cash Settlement
    
	
 
    	
 
    	
 
    
	
Forward Cash Settlement Amount:
    	
 
    	
The Settlement Amount multiplied   by the Buyer Settlement Price.
    
	
 
    	
 
    	
 
    
	
Buyer Settlement Price:
    	
 
    	
The average of the 10b-18 VWAPs for the Calculation   Dates in the Buyer Settlement Valuation Period, subject to the provisions   opposite the caption “Market Disruption Event” in the Confirmation.
    
	
 
    	
 
    	
 
    
	
Buyer Settlement Valuation Period:
    	
 
    	
A number of Scheduled Trading Days selected by   Dealer in a commercially reasonable manner to unwind a commercially   reasonable Hedge Position, beginning on the Scheduled Trading Day immediately   following the earlier of (i) the Scheduled Valuation Date or   (ii) the Exchange Business Day immediately following the Valuation Date.
    
	
 
    	
 
    	
 
    
	
Cash Settlement:
    	
 
    	
If Cash Settlement is applicable, then Buyer shall   pay to Seller the absolute value of the Forward Cash Settlement Amount on the   Buyer Cash Settlement Payment Date.
    


 

1











 

	
Buyer Cash Settlement Payment Date:
    	
 
    	
The date one Settlement Cycle following the last day   of the Buyer Settlement Valuation Period.
    
	
 
    	
 
    	
 
    
	
Net Share Settlement Procedures:
    	
 
    	
If Net Share Settlement is applicable, Net Share   Settlement shall be made in accordance with paragraphs 2 through 8 below.
    


 

2.                                      Net Share Settlement shall be made by delivery on the Buyer Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in either case with a value equal to the absolute value of the Forward Cash Settlement Amount, with such Shares’ value based on the value thereof to Dealer (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount), in each case, as determined by the Calculation Agent.

 

3.                                      Buyer may deliver Registered Settlement Shares pursuant to paragraph 2 above only if:

 

(a)                                 a registration statement covering public resale of the Registered Settlement Shares by Dealer (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; and a printed prospectus relating to the Registered Settlement Shares (including any prospectus supplement thereto, the “Prospectus”) shall have been delivered to Dealer, in such quantities as Dealer shall reasonably have requested, on or prior to the date of delivery;

 

(b)                                 the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be satisfactory to Dealer;

 

(c)                                  as of or prior to the date of delivery, Dealer and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Buyer customary in scope for underwritten offerings of equity securities and the results of such investigation are satisfactory to Dealer, in its discretion; and

 

(d)                                 as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with Dealer in connection with the public resale of the Registered Settlement Shares by Dealer substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance satisfactory to Dealer, which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Dealer and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.

 

4.                                      If Buyer delivers Unregistered Settlement Shares pursuant to paragraph 2 above:

 

(a)                                 all Unregistered Settlement Shares shall be delivered to Dealer (or any affiliate of Dealer designated by Dealer) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof;

 

(b)                                 as of or prior to the date of delivery, Dealer and any potential purchaser of any such shares from Dealer (or any affiliate of Dealer designated by Dealer) identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Buyer customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them);

 

2











 

(c)                                  as of the date of delivery, Buyer shall enter into an agreement (a “Private Placement Agreement”) with Dealer (or any affiliate of Dealer designated by Dealer) in connection with the private placement of such shares by Buyer to Dealer (or any such affiliate) and the private resale of such shares by Dealer (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to Dealer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Dealer and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for the payment by Buyer of all fees and expenses in connection with such resale, including all fees and expenses of counsel for Dealer, and shall contain representations, warranties, covenants and agreements of Buyer reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and

 

(d)                                 in connection with the private placement of such shares by Buyer to Dealer (or any such affiliate) and the private resale of such shares by Dealer (or any such affiliate), Buyer shall, if so requested by Dealer, prepare, in cooperation with Dealer, a private placement memorandum in form and substance reasonably satisfactory to Dealer.

 

5.                                      Dealer, itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the “Settlement Shares”) delivered by Buyer to Dealer pursuant to paragraph 6 below commencing on the Buyer Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by Dealer, is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”).  If the proceeds of any sale(s) made by Dealer, the Selling Agent or any underwriter(s), net of any fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, Dealer will refund, in USD, such excess to Buyer on the date that is two (2) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, Dealer shall return to Buyer on that date such unsold Shares.

 

6.                                      If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement Amount being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Buyer shall, on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”), deliver to Dealer, through the Selling Agent, a notice of Buyer’s election that Buyer shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares.  If Buyer elects to deliver to Dealer additional Shares, then Buyer shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day that is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall.  Such Makewhole Shares shall be sold by Dealer in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Buyer shall, at its election, either make such cash payment or deliver to Dealer further Makewhole Shares until such Shortfall has been reduced to zero.

 

3











 

7.                                      Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares for the Transaction be greater than the Share Cap (as specified in Schedule I).  Buyer represents and warrants (which shall be deemed to be repeated on each day that the Transaction is outstanding) that the Share Cap is equal to or less than the number of Shares determined according to the following formula:

 

A – B

 

Where             A = the number of authorized but unissued shares of Buyer that are not reserved for future issuance on the date hereof; and

 

B = the maximum number of Shares required to be delivered to third parties if Buyer elected Net Share Settlement of all transactions in the Shares (other than the Transaction) with all third parties that are then currently outstanding and unexercised.

 

8.                                      Notwithstanding anything to the contrary in the Confirmation, Issuer acknowledges and agrees that, on any day, Dealer shall not be obligated or entitled to receive from Issuer any Shares, and Issuer shall not be entitled to deliver to Dealer any Shares, to the extent (but only to the extent) that, after such receipt of any Shares hereunder, (i) the Section 16 Percentage would exceed 8.0%, or (ii) the Share Amount would exceed the Applicable Share Limit.  Any purported delivery hereunder shall be void and have no effect to the extent (but only to the extent) that, after such delivery, (i) the Section 16 Percentage would exceed 8.0%, or (ii) the Share Amount would exceed the Applicable Share Limit.  If any delivery owed to Dealer hereunder is not made, in whole or in part, as a result of this provision, Issuer’s obligation to make such delivery shall not be extinguished and Issuer shall make such delivery as promptly as practicable after, but in no event later than one Exchange Business Day after, Dealer gives notice to Issuer that, after such delivery, (i) the Section 16 Percentage would not exceed 8.0%, and (ii) the Share Amount would not exceed the Applicable Share Limit.  The “Section 16 Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates or any other person subject to aggregation with Dealer for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act, or any “group” (within the meaning of Section 13 of the Exchange Act) of which Dealer is or may be deemed to be a part beneficially owns (within the meaning of Section 13 of the Exchange Act), without duplication, on such day (or, to the extent that for any reason the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such higher number) and (B) the denominator of which is the number of Shares outstanding on such day.  The “Share Amount” as of any day is the number of Shares that Dealer and any person whose ownership position would be aggregated with that of Dealer (Dealer or any such person, a “Dealer Person”) under any law, rule, regulation, regulatory order or organizational documents or contracts of Issuer that are, in each case, applicable to ownership of Shares (“Applicable Restrictions”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership under any Applicable Restriction, as determined by Dealer in its reasonable discretion.  The “Applicable Share Limit” means a number of Shares equal to (A) the minimum number of Shares that could give rise to reporting or registration obligations or other requirements (including obtaining prior approval from any person or entity) of a Dealer Person, or could result in an adverse effect on a Dealer Person, under any Applicable Restriction, as determined by Dealer in its reasonable discretion, minus (B) 1% of the number of Shares outstanding.

 

4