Document:

Exhibit 10.3

 

THE SECURITIES REPRESENTED HEREBY (THE “WARRANTS”)
WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (
THE “SECURITIES ACT”), AND THE WARRANTS MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREOF.

 

[GOLDMAN SACHS & CO. LLC | 200 WEST STREET |
NEW YORK, NEW YORK 10282-2198 | TEL: 212-902-1000]1

 

[Barclays
Bank PLC

5 The
North Colonnade

Canary
Wharf, London E14 4BB

Facsimile:
+44(20)77736461

Telephone:
+44 (20) 777 36810

 

c/o
Barclays Capital Inc.

as
Agent for Barclays Bank PLC

745
Seventh Avenue

New
York, NY 10019

Telephone: +1 212 412 4000]2

 

	 	[                      ],
    2020

 

	To:	Enphase
                                         Energy, Inc.

                                         47281 Bayside Parkway

                                         Fremont, CA 94538

                                         Attention: General Counsel

                                         Telephone No.: (707) 774-7000
	 	 
	Re:	[Base][Additional] Warrants

 

The
purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the Warrants
issued by Enphase Energy, Inc. (“Company”)
to [Barclays Bank PLC][Goldman Sachs & Co. LLC] (“Dealer”)[, through its agent Barclays Capital Inc.
(the “Agent”),]3 as of the Trade Date specified below (the “Transaction”). This
letter agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. This Confirmation
shall replace any previous agreements and serve as the final documentation for the Transaction. [Dealer is not a member of the
Securities Investor Protection Corporation. Dealer is authorized by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority and the Prudential Regulation Authority.]4

 

The definitions and
provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published
by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated into this Confirmation.
In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation shall govern.

 

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

 

1.             This
Confirmation evidences a complete and binding agreement between Dealer and Company as to the terms of the Transaction to which
this Confirmation relates. This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the
2002 ISDA Master Agreement (the “Agreement”) as if Dealer and Company had executed an agreement in such form
(but without any Schedule except for the election of the laws of the State of New York as the governing law (without reference
to choice of law doctrine)) on the Trade Date. In the event of any inconsistency between provisions of that Agreement and this
Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates. The parties
hereby agree that no Transaction other than the Transaction to which this Confirmation relates shall be governed by the Agreement.

 

 

1
Include for GS.

2
Include for Barclays.

3
Include for Barclays.

4
Include for Barclays.

 

     

     

    

 

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

 

	General
    Terms.	 
	 	 
	Trade Date:	[                   ],
    2020
	 	 
	Effective Date:	The second Exchange
    Business Day immediately prior to the Premium Payment Date
	 	 
	Warrants:	Equity call warrants,
    each giving the holder the right to purchase a number of Shares equal to the Warrant Entitlement at a price per Share equal
    to the Strike Price, subject to the terms set forth under the caption “Settlement Terms” below. For the purposes
    of the Equity Definitions, each reference to a Warrant herein shall be deemed to be a reference to a Call Option.
	 	 
	Warrant Style:	European
	 	 
	Seller:	Company
	 	 
	Buyer:	Dealer
	 	 
	Shares:	The common stock
    of Company, par value USD 0.00001 per share (Exchange symbol “ENPH” as of the Trade Date).
	 	 
	Number of Warrants:	[                    ]5.
    For the avoidance of doubt, the Number of Warrants shall be reduced by any Warrants exercised or deemed exercised hereunder.
    In no event will the Number of Warrants be less than zero.
	 	 
	Warrant Entitlement:	One Share per Warrant
	 	 
	Strike Price:	USD [                 ].
    Notwithstanding anything to the contrary in the Agreement, this Confirmation or the Equity Definitions, in no event shall
    the Strike Price be subject to adjustment to the extent that, after giving effect to such adjustment, the Strike Price would
    be less than USD [           ]6, except for any adjustment
    pursuant to the terms of this Confirmation and the Equity Definitions in connection with stock splits or similar changes to
    Company’s capitalization.
	 	 
	Premium:	USD [                 ]

 

 

 5
This is equal to (i) the number of Convertible Notes initially issued on the closing date for the Convertible
Notes (or, for the Additional Warrant Confirmation, the number of additional Convertible Notes), multiplied by (ii) the
initial Conversion Rate, multiplied by (iii) the applicable percentage for Dealer.

6
Insert the closing price of the Shares on the night of pricing.

 

    2

     

    

 

	Premium
    Payment Date:	[                      ],
    2020
	 	 
	Exchange:	The NASDAQ Global
    Market
	 	 
	Related Exchange(s):	All Exchanges; provided
    that Section 1.26 of the Equity Definitions shall be amended to add the words “United States” before
    the word “exchange” in the tenth line of such section.
	 	 
	Procedures
    for Exercise.	 
	 	 
	Expiration Time:	The Valuation Time
	 	 
	Expiration Dates:	Each Scheduled Trading
    Day during the period from, and including, the First Expiration Date to, but excluding, the [407]th Scheduled Trading
    Day following the First Expiration Date shall be an “Expiration Date” for a number of Warrants equal to the Daily
    Number of Warrants on such date; provided that, notwithstanding anything to the contrary in the Equity Definitions,
    if any such date is a Disrupted Day, the Calculation Agent shall make adjustments in good faith and in a commercially reasonable
    manner, if applicable, to the Daily Number of Warrants or shall reduce such Daily Number of Warrants to zero for which such
    day shall be an Expiration Date and shall designate a Scheduled Trading Day or a number of Scheduled Trading Days as the Expiration
    Date(s) for the remaining Daily Number of Warrants or a portion thereof for the originally scheduled Expiration Date;
    and provided further that if such Expiration Date has not occurred pursuant to this clause as of the eighth Scheduled
    Trading Day following the last scheduled Expiration Date under the Transaction, the Calculation Agent shall have the right
    to declare such Scheduled Trading Day to be the final Expiration Date and the Calculation Agent shall determine its good faith
    estimate of the fair market value for the Shares as of the Valuation Time on that eighth Scheduled Trading Day or on any subsequent
    Scheduled Trading Day, as the Calculation Agent shall determine using commercially reasonable means; provided further
    that in no event shall any Expiration Date under the Transaction be postponed to a date later than the Final Expiration Date.
	 	 
	First Expiration
    Date:	[June 1, 2025]
    (or if such day is not a Scheduled Trading Day, the next following Scheduled Trading Day), subject to Market Disruption Event
    below.
	 	 
	Daily Number of
    Warrants:	For any Expiration
    Date, the Number of Warrants that have not expired or been exercised as of such day, divided by the remaining number
    of Expiration Dates (including such day), rounded down to the nearest whole number, subject to adjustment pursuant to the
    provisos to “Expiration Dates”.
	 	 
	Automatic Exercise:	Applicable; and
    means that for each Expiration Date, a number of Warrants equal to the Daily Number of Warrants for such Expiration Date will
    be deemed to be automatically exercised at the Expiration Time on such Expiration Date.

 

 

7
To be twice the length of the observation period for the convertible notes.

    3

     

    

 

	Market
    Disruption Event:	Section 6.3(a) of
    the Equity Definitions is hereby amended by replacing clause (ii) in its entirety with “(ii) an Exchange Disruption,
    or” and inserting immediately following clause (iii) the phrase “; in each case that the Calculation Agent
    reasonably determines is material.”
	 	 
	 	Section 6.3(d) of
    the Equity Definitions is hereby amended by deleting the remainder of the provision following the words “Scheduled Closing
    Time” in the fourth line thereof.
	 	 
	Final Expiration
    Date:	[                   ],
    20258
	 	 
	Valuation
    Terms.	 
	 	 
	Valuation Time:	Scheduled Closing
    Time; provided that if the principal trading session is extended, the Calculation Agent shall determine the Valuation
    Time in good faith and in a commercially reasonable manner.
	 	 
	Valuation Date:	Each Exercise Date.
	 	 
	Settlement
    Terms.	 
	 	 
	Settlement Method
    Election:	Applicable; provided
    that (i) references to “Physical Settlement” in Section 7.1 of the Equity Definitions shall be replaced
    by references to “Net Share Settlement”; (ii) Company may elect Cash Settlement only if Company represents
    and warrants to Dealer in writing on the date of such election that (A) Company is not in possession of any material
    non-public information regarding Company or the Shares, (B) Company is electing Cash Settlement in good faith and not
    as part of a plan or scheme to evade compliance with the federal securities laws, and (C) the assets of Company at their
    fair valuation exceed the liabilities of Company (including contingent liabilities), the capital of Company is adequate to
    conduct the business of Company, and Company has the ability to pay its debts and obligations as such debts mature and does
    not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts mature; and (iii) the
    same election of settlement method shall apply to all Expiration Dates hereunder.
	 	 
	Electing Party:	Company.
	 	 
	Settlement Method
    Election Date:	The second Scheduled
    Trading Day immediately preceding the scheduled First Expiration Date.
	 	 
	Default Settlement
    Method:	Net Share Settlement.

 

 

8
Insert date that is 40 Exchange Business Days after last scheduled Expiration Date.

 

    4

     

    

 

	Net
    Share Settlement:	If Net
    Share Settlement is applicable, then on the relevant Settlement Date, Company shall deliver to Dealer a number of Shares equal
    to the Share Delivery Quantity for such Settlement Date to the account specified herein free of payment through the Clearance
    System, and Dealer shall be treated as the holder of record of such Shares at the time of delivery of such Shares or, if earlier,
    at 5:00 p.m. (New York City time) on such Settlement Date, and Company shall pay to Dealer cash in lieu of any fractional
    Share based on the Settlement Price on the relevant Valuation Date.
	 	 
	Cash Settlement:	If Cash Settlement
    is applicable, then on the relevant Settlement Date, Company shall pay to Dealer an amount of cash in USD equal to the Net
    Share Settlement Amount for such Settlement Date.
	 	 
	Share Delivery
    Quantity:	For any Settlement
    Date, a number of Shares, as calculated by the Calculation Agent, equal to the Net Share Settlement Amount for such Settlement
    Date divided by the Settlement Price on the Valuation Date for such Settlement Date.
	 	 
	Net Share Settlement
    Amount:	For any Settlement
    Date, an amount equal to the product of (i) the number of Warrants exercised or deemed exercised on the relevant Exercise
    Date, (ii) the Strike Price Differential for the relevant Valuation Date and (iii) the Warrant Entitlement.
	 	 
	Settlement Price:	For any Valuation
    Date, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg
    page ENPH <equity> AQR (or any successor thereto) in respect of the period from the scheduled opening time of the
    Exchange to the Scheduled Closing Time on such Valuation Date (or if such Bloomberg page is unavailable, the market value
    of one Share on such Valuation Date, as determined by the Calculation Agent in good faith and in a commercially reasonable
    manner based on generally available market data for transactions of this type using, if practicable, a volume-weighted methodology).
    Notwithstanding the foregoing, if (i) any Expiration Date is a Disrupted Day and (ii) the Calculation Agent determines
    that such Expiration Date shall be an Expiration Date for fewer than the Daily Number of Warrants, as described above, then
    the Settlement Price for the relevant Valuation Date shall be the volume-weighted average price per Share on such Valuation
    Date on the Exchange (as determined by the Calculation Agent in good faith and in a commercially reasonable manner based on
    generally available market data for transactions of this type using a commercially reasonable volume-weighted methodology)
    for the portion of such Valuation Date for which the Calculation Agent determines there is no Market Disruption Event.

 

    5

     

    

 

	Settlement
    Dates:	As determined
    pursuant to Section 9.4 of the Equity Definitions, subject to Section ‎9(k)(i) hereof; provided
    that Section 9.4 of the Equity Definitions is hereby amended by (i) inserting the words “or cash” immediately
    following the word “Shares” in the first line thereof and (ii) inserting the words “for the Shares”
    immediately following the words “Settlement Cycle” in second line thereof.
	 	 
	Other Applicable
    Provisions:	If Net Share Settlement
    is applicable, the provisions of Sections 9.1(c), 9.8, 9.9, 9.11 and 9.12 of the Equity Definitions will be applicable, except
    that all references in such provisions to “Physically-settled” shall be read as references to “Net Share
    Settled.” “Net Share Settled” in relation to any Warrant means that Net Share Settlement is applicable to
    that Warrant.
	 	 
	Representation
    and Agreement:	Notwithstanding
    Section 9.11 of the Equity Definitions, the parties acknowledge that any Shares delivered to Dealer in the event of a
    Net Share Settlement may be, upon delivery, subject to restrictions and limitations arising from Company’s status as
    issuer of the Shares under applicable securities laws.
	 	 
	3.            Additional
    Terms applicable to the Transaction.
	 	 
	Adjustments
    applicable to the Transaction:
	 	 
	Method of Adjustment:	Calculation Agent
    Adjustment; provided that the parties hereto agree that any Share repurchases by Company, whether pursuant to Rule 10b-18
    of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Rule 10b5-1 of the Exchange
    Act or pursuant to forward contracts or accelerated stock repurchase contracts or similar derivatives transactions on customary
    terms, at prevailing market prices, volume-average weighted prices or discounts thereto shall not be considered Potential
    Adjustment Events. For the avoidance of doubt, in making any adjustments under the Equity Definitions, the Calculation Agent
    may make adjustments, if any, to any one or more of the Strike Price, the Number of Warrants, the Daily Number of Warrants
    and the Warrant Entitlement in a commercially reasonable manner. Notwithstanding the foregoing, any cash dividends or cash
    distributions on the Shares, whether or not extraordinary, shall be governed by Section ‎9(f) of this Confirmation
    in lieu of Article 10 or Section 11.2(c) of the Equity Definitions.
	 	 
	Extraordinary
    Events applicable to the Transaction:
	 	 
	New Shares:	Section 12.1(i) of
    the Equity Definitions is hereby amended (a) by deleting the text in clause (i) thereof in its entirety (including
    the word “and” following clause (i)) and replacing it with the phrase “publicly quoted, traded or listed
    (or whose related depositary receipts are publicly quoted, traded or listed) on any of the New York Stock Exchange, The NASDAQ
    Global Select Market or The NASDAQ Global Market (or their respective successors)” and (b) by inserting immediately
    prior to the period the phrase “and (iii) of an entity or person that is a corporation organized under the laws
    of the United States, any State thereof or the District of Columbia and either (1) such entity or person becomes Company
    under the Transaction following such Merger Event or Tender Offer or (2) Company is a wholly owned subsidiary of such
    entity or person following such Merger Event or Tender Offer, and such entity or person fully and unconditionally guarantees
    the obligations of Company under the Transaction”.

 

    6

     

    

 

	Consequence of Merger Events:	 
	 	 
	Merger Event:	Applicable; provided
    that if an event occurs that constitutes both a Merger Event under Section 12.1(b) of the Equity Definitions
    and an Additional Termination Event under Section 9(h)(ii)(B) of this Confirmation, the provisions of Section 9(h)(ii)(B) will
    apply.
	 	 
	Share-for-Share:	Modified Calculation
    Agent Adjustment
	 	 
	Share-for-Other:	Cancellation and
    Payment (Calculation Agent Determination)
	 	 
	Share-for-Combined:	Cancellation and
    Payment (Calculation Agent Determination); provided that Dealer may elect, in its commercially reasonable judgment,
    Component Adjustment (Calculation Agent Determination) for all or any portion of the Transaction.
	 	 
	Consequence of Tender
    Offers:	 
	 	 
	Tender Offer:	Applicable; provided
    that if an event occurs that constitutes both a Tender Offer under Section 12.1(d) of the Equity Definitions
    and Additional Termination Event under Section 9(h)(ii)(A) of this Confirmation, the provisions of Section 9(h)(ii)(A) will
    apply; provided further that the definition of “Tender Offer” in Section 12.1(d) of the Equity
    Definitions is hereby amended by replacing the phrase “greater than 10%” with “greater than 20%”.
	 	 
	Share-for-Share:	Modified Calculation
    Agent Adjustment
	 	 
	Share-for-Other:	Modified Calculation
    Agent Adjustment
	 	 
	Share-for-Combined:	Modified Calculation
    Agent Adjustment

 

    7

     

    

 

	Announcement
    Event:	If (x) an
    Announcement Date occurs in respect of a Merger Event (for the avoidance of doubt, determined without regard to the language
    in the definition of “Merger Event” following the definition of “Reverse Merger” therein) or Tender
    Offer or (y) any potential acquisition by Issuer and/or its subsidiaries is announced by any entity where the aggregate
    consideration exceeds 35% of the market capitalization of Issuer as of the date of such announcement (an “Acquisition
    Transaction”) (any event described in clause (x) or (y), an “Announcement Event”), then
    on the earliest of the Expiration Date, Early Termination Date or other date of cancellation (the “Announcement Event
    Adjustment Date”) in respect of each Warrant, the Calculation Agent will determine the economic effect of such Announcement
    Event on the theoretical value of the Warrant (regardless of whether the Announcement Event actually results in a Merger Event
    or Tender Offer, and taking into account such factors as the Calculation Agent may determine, including, without limitation,
    changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares or the Transaction whether
    prior to or after the Announcement Event or for any period of time, including, without limitation, the period from the Announcement
    Event to the relevant Announcement Event Adjustment Date).  If the Calculation Agent determines that such economic
    effect on any Warrant is material, then on the Announcement Event Adjustment Date for such Warrant, the Calculation Agent
    shall make such adjustment to the Strike Price, the Number of Warrants, the Daily Number of Warrants, the Warrant Entitlement
    and/or the Expiration Dates, in each case, as the Calculation Agent determines in good faith and in a commercially reasonable
    manner appropriate to account for such economic effect, which adjustment shall be effective immediately prior to the exercise,
    termination or cancellation of such Warrant, as the case may be.
	 	 
	Announcement Date:	The definition of
    “Announcement Date” in Section 12.1 of the Equity Definitions is hereby amended by (i) replacing the
    words “a firm” with the word “any” in the second and fourth lines thereof, (ii) replacing the
    word “leads to the” with the words “, if completed, would lead to a” in the third and the fifth lines
    thereof, (iii) replacing the words “voting shares” with the word “Shares” in the fifth line thereof,
    and (iv) inserting the words “by any entity” after the word “announcement” in the second and
    the fourth lines thereof.
	 	 
	Nationalization, Insolvency
    or Delisting:	Cancellation and
    Payment (Calculation Agent Determination); provided that, in addition to the provisions of Section 12.6(a)(iii) of
    the Equity Definitions, it will also constitute a Delisting if the Exchange is located in the United States and the Shares
    are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market
    or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted
    on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors),
    such exchange or quotation system shall thereafter be deemed to be the Exchange.

 

    8

     

    

 

	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 word
    “Shares” with the phrase “Hedge Positions” in clause (X) thereof, (ii) inserting the parenthetical
    “(including, for the avoidance of doubt and without limitation, adoption or promulgation of new regulations authorized
    or mandated by existing statute)” at the end of clause (A) thereof and (iii) by immediately following the
    word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging
    Party on the Trade Date”.
	 	 
	Failure to Deliver:	Not Applicable
	 	 
	Insolvency Filing:	Applicable
	 	 
	Hedging Disruption:	Applicable; provided that:
	 	 
	 	(i)	Section 12.9(a)(v) of
    the Equity Definitions is hereby amended by (a) inserting the following words at the end of clause (A) thereof:
    “in the manner contemplated by the Hedging Party on the Trade Date” and (b) inserting the following two phrases
    at the end of such Section:
	 	 	 
	 	 	“For the avoidance
    of doubt, the term “equity price risk” shall be deemed to include, but shall not be limited to, stock price and
    volatility risk. And, for the further avoidance of doubt, any such transactions or assets referred to in phrases (A) or
    (B) above must be available on commercially reasonable pricing terms.”; and
	 	 
	 	(ii)	Section 12.9(b)(iii) of
    the Equity Definitions is hereby amended by inserting in the third line thereof, after the words “to terminate the Transaction”,
    the words “or a portion of the Transaction affected by such Hedging Disruption”.
	 	 
	Increased Cost
    of Hedging:	Applicable
	 	 
	Loss of Stock Borrow:	Applicable
	 	 
	Maximum Stock Loan
    Rate:	200 basis points
	 	 
	Increased Cost
    of Stock Borrow:	Applicable
	 	 
	Initial Stock Loan
    Rate:	0 basis points until [March 1,
    2025] and 25 basis points thereafter.
	 	 
	Hedging Party:	For all applicable Additional Disruption
    Events, Dealer.
	 	 
	Determining Party:	For
    all applicable Extraordinary Events, Dealer. All calculations and determinations by the Determining Party shall be made in
    good faith and in a commercially reasonable manner. Following any calculation by the Determining Party hereunder, upon written
    request by Company, the Determining Party will provide to Company by email to the email address provided by Company in such
    written request a report (in a commonly used file format for the storage and manipulation of financial data) displaying in
    reasonable detail the basis for such calculation and specifying the particular section of the Confirmation pursuant to which
    such calculation or determination is being made (and in the event that more than one section of the Confirmation would permit
    the Determining Party to make an adjustment upon the occurrence of a specific event, then the Determining Party shall specify
    the particular section number pursuant to which the Calculation Agent is making the adjustment hereunder); provided,
    however, that in no event will the foregoing constitute a waiver or relinquishment of any of the rights of Dealer,
    the Hedging Party, the Determining Party or the Calculation Agent hereunder or prohibit any such party from exercising any
    of its rights otherwise exercisable hereunder; and provided further that in no event will the Determining Party be
    obligated to share with Company any proprietary or confidential data or information or any proprietary or confidential models
    used by it.

 

    9

     

    

 

	Non-Reliance:	Applicable.
	 	 
	Agreements and Acknowledgments	 
	Regarding Hedging
    Activities:	Applicable
	 	 
	Additional Acknowledgments:	Applicable
	 	 
	4.            Calculation
    Agent.	Dealer; provided
    that following the occurrence and during the continuance of an Event of Default of the type described in Section 5(a)(vii) of
    the Agreement with respect to which Dealer is the sole Defaulting Party, if the Calculation Agent fails to timely make any
    calculation, adjustment or determination required to be made by the Calculation Agent hereunder or to perform any obligation
    of the Calculation Agent hereunder and such failure continues for five Exchange Business Days following notice to the Calculation
    Agent by Company of such failure, Company shall have the right to designate a nationally recognized third-party dealer in
    over-the-counter corporate equity derivatives to act, during the period commencing on the first date the Calculation Agent
    fails to timely make such calculation, adjustment or determination or to perform such obligation, as the case may be, and
    ending on the earlier of the Early Termination Date with respect to such Event of Default and the date on which such Event
    of Default is no longer continuing, as the Calculation Agent.
	 	 
	 	All calculations
    and determinations by the Calculation Agent shall be made in good faith and in a commercially reasonable manner. Following
    any calculation by the Calculation Agent hereunder, upon written request by Company, the Calculation Agent will provide to
    Company by email to the email address provided by Company in such written request a report (in a commonly used file format
    for the storage and manipulation of financial data) displaying in reasonable detail the basis for such calculation and specifying
    the particular section of the Confirmation pursuant to which such calculation or determination is being made (and in the event
    that more than one section of the Confirmation would permit the Calculation Agent to make an adjustment upon the occurrence
    of a specific event, then the Calculation Agent shall specify the particular section number pursuant to which the Calculation
    Agent is making the adjustment hereunder); provided, however, that in no event will the foregoing constitute
    a waiver or relinquishment of any of the rights of Dealer, the Hedging Party, the Determining Party or the Calculation Agent
    hereunder or prohibit any such party from exercising any of its rights otherwise exercisable hereunder; and provided further
    that in no event will Dealer be obligated to share with Company any proprietary or confidential data or information or
    any proprietary or confidential models used by it.

 

    10

     

    

	 	 	 	 	 
	5.	Account Details.	 
	 		 
	 	(a)	Account for payments to Company:	 
	 	 	 	 
	 	 	[Bank:	Wells Fargo Bank, N.A.	 
	 	 	ABA#:	[        ]	 
	 	 	Acct No.:	[        ]	 
	 	 	Beneficiary:	[        ]	 
	 	 	Ref:	SWIFT: [        ]9	 
	 	 	 	 	 
	 	 	Account for delivery of Shares from Company:
	 	 	 
	 	 	To be provided upon request.
	 	 	 	 	 
	 	(b)	Account for payments to Dealer:	 
	 	 	 	 
	 	 	[Bank: Barclays Bank plc NY	 
	 	 	ABA# [        ]  	 
	 	 	BIC: [        ]	 
	 	 	Acct: [        ]	 
	 	 	Beneficiary: [        ]10	 
	 	 	 	 
	 	 	[Chase Manhattan Bank New York	 
	 	 	For A/C Goldman Sachs & Co. LLC	 
	 	 	A/C # [        ]	 
	 	 	ABA:  [        ]11	 
	 	 	 	 
	 	 	Account for delivery of Shares to Dealer:
	 	 	 
	 	 	To be provided by Dealer.	 
	 	 	 	 
	6.	Offices.	 
	 	 	 
	 	(a)	The Office of Company for the Transaction is:  Inapplicable, Company is not a Multibranch Party.
	 	 	 	 	 

 

 

 9
Company’s counsel to confirm.

10
Include for Barclays.

11
Include for GS.

 

    11

     

    

 

		(b)	The Office of Dealer for the Transaction
                                         is: [Inapplicable, Dealer is not a Multibranch Party]12
                                         [200 West Street, New York, New York 10282-2198]13

 

		7.	Notices.

 

		(a)	Address for notices or communications
                                         to Company:

 

[Enphase Energy, Inc.

Attention: General Counsel

Telephone No.: (707) 763-4785]14

 

		(b)	Address for notices or communications
                                         to Dealer:

 

[Barclays Bank PLC

c/o Barclays Capital Inc.

745 Seventh Avenue

New York, NY 10019

		Attn:	S. Raj Imteaz

		Telephone:	(+1) 212-526-1426

		Facsimile:	(+1) 917-522-0458

		Email:	syed.imteaz@barclays.com]15

 

		[To:	Goldman Sachs &
                                         Co. LLC

200 West Street

New York,
NY 10282-2198

		Attn:	Michael Voris,

Equity Capital
Markets

		Telephone:	212-902-4895

		Facsimile:	212-291-5027

		Email:	michael.voris@gs.com

 

And email notification to the following address:

Eq-derivs-notifications@am.ibd.gs.com]16

 

		8.	Representations and Warranties of
                                         Company and Dealer.

 

		(a)	Representations of Company.
                                         Each of the representations and warranties of Company set forth in Section 2 of the Purchase
                                         Agreement (the “Purchase Agreement”), dated as of [________], 2020,
                                         among the Company, Barclays Capital Inc. and Goldman Sachs & Co. LLC, as representatives
                                         of the initial purchasers party thereto (the “Initial Purchasers”),
                                         are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein.
                                         Company hereby further represents and warrants to Dealer on the date hereof, on and as
                                         of the Premium Payment Date and, in the case of the representations in Section ‎8(a)(iv),
                                         at all times until termination of the Transaction, that:

 

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

 

 

12
Include for Barclays.

13
Include for GS.

14
Company’s counsel to confirm.

15
Include for Barclays.

16
Include for GS.

 

    	 	12	 

     

    

 

		(ii)	Neither the execution and delivery
                                         of this Confirmation nor the incurrence or performance of obligations of Company hereunder
                                         will conflict with or result in a breach of (A) the certificate of incorporation or by-laws
                                         (or any equivalent documents) of Company, or (B) any applicable law or regulation, or
                                         any order, writ, injunction or decree of any court or governmental authority or agency,
                                         or (C) any agreement or instrument to which Company or any of its subsidiaries is a party
                                         or by which Company or any of its subsidiaries is bound or to which Company or any of
                                         its subsidiaries is subject, or constitute a default under, or result in the creation
                                         of any lien under, any such agreement or instrument, except for any such conflicts, breaches,
                                         defaults or lien creations in the cases of clause (C) above that would not adversely
                                         affect the ability of Company to fulfill its obligations under this Transaction.

 

		(iii)	No consent, approval, authorization,
                                         or order of, or filing with, any governmental agency or body or any court is required
                                         in connection with the execution, delivery or performance by Company of this Confirmation,
                                         except such as have been obtained or made and such as may be required under the Securities
                                         Act or state securities laws.

 

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

 

		(v)	Company is not and, after consummation
                                         of 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.

 

		(vi)	Company is in compliance, in all
                                         material respects, with its periodic reporting obligations under the Exchange Act.

 

		(vii)	Company (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 $50 million.

 

		(b)	Eligible Contract Participants.
                                         Each of Dealer and Company agrees and represents that it is an “eligible contract
                                         participant” (as such term is defined in Section 1a(18) of the Commodity Exchange
                                         Act, as amended (the “CEA”), other than a person that is an eligible
                                         contract participant under Section 1a(18)(C) of the CEA).

 

		(c)	Private Placement Representations.
                                         Each of Dealer and Company acknowledges that the offer and sale of the Transaction to
                                         it is intended to be exempt from registration under the Securities Act, by virtue of
                                         Section 4(a)(2) thereof. Accordingly, Dealer represents and warrants to Company 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 and its investments in and liabilities
                                         in respect of the Transaction, which it understands are not readily marketable, are not
                                         disproportionate to its net worth, and it is able to bear any loss in connection with
                                         the Transaction, including the loss of its entire investment in the Transaction, (ii)
                                         it is an “accredited investor” as that term is defined in Regulation D as
                                         promulgated 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, (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, and (v) its financial condition is such that it has no need
                                         for liquidity with respect to its investment in the Transaction and no need to dispose
                                         of any portion thereof to satisfy any existing or contemplated undertaking or indebtedness
                                         and is capable of assessing the merits of and understanding (on its own behalf or through
                                         independent professional advice), and understands and accepts, the terms, conditions
                                         and risks of the Transaction.

 

    	 	13	 

     

    

 

		9.	Other Provisions.

 

		(a)	Opinions.
                                         Company shall deliver to Dealer an opinion of counsel, dated as of the Trade Date, with
                                         respect to (i) the matters set forth in Section 8(a)(ii)(B) and Section 8(a)(iii) of
                                         this Confirmation to the knowledge of counsel, (ii) due incorporation, existence and
                                         good standing of Company in Delaware, (iii) the due authorization, execution and delivery
                                         of this Confirmation, and, (iv) in respect of the execution, delivery and performance
                                         of this Confirmation, the absence of any conflict with or breach of any material agreement
                                         required to be filed as an exhibit to Company’s Annual Report on Form 10-K, Company’s
                                         certificate of incorporation or Company’s by-laws.  Delivery of such opinion
                                         to Dealer shall be a condition precedent for the purpose of Section 2(a)(iii) of the
                                         Agreement with respect to each obligation of Dealer under Section 2(a)(i) of the Agreement.

 

		(b)	Repurchase Notices.
                                         Company shall, on any day on which Company effects any repurchase of Shares, promptly
                                         give Dealer a written notice of such repurchase (a “Repurchase Notice”)
                                         on such day if following such repurchase, the number of outstanding Shares on such day,
                                         subject to any adjustments provided herein, is (i) less than [__]17
                                         million (in the case of the first such notice) or (ii) thereafter more than
                                         [__]18
                                         million less than the number of Shares included in the immediately preceding
                                         Repurchase Notice. Company agrees to indemnify and hold harmless Dealer and its affiliates
                                         and their respective officers, directors, employees, affiliates, advisors, agents and
                                         controlling persons (each, an “Indemnified Person”) from and against
                                         any and all losses (including losses relating to Dealer’s commercially reasonable
                                         hedging activities as a consequence of becoming, or of the risk of becoming, a Section
                                         16 “insider”, including without limitation, any forbearance from hedging
                                         activities or cessation of hedging activities and any losses in connection therewith
                                         with respect to the Transaction), claims, damages, judgments, liabilities and expenses
                                         (including reasonable attorney’s fees), joint or several, which an Indemnified
                                         Person actually may become subject to, as a result of Company’s failure to provide
                                         Dealer with a Repurchase Notice on the day and in the manner specified in this paragraph,
                                         and to reimburse, within 30 days, upon written request, each of such Indemnified Persons
                                         for any reasonable legal or other expenses incurred in connection with investigating,
                                         preparing for, providing testimony or other evidence in connection with or defending
                                         any of the foregoing. If any suit, action, proceeding (including any governmental or
                                         regulatory investigation), claim or demand shall be brought or asserted against the Indemnified
                                         Person, such Indemnified Person shall promptly notify Company in writing, and Company,
                                         upon request of the Indemnified Person, shall retain counsel reasonably satisfactory
                                         to the Indemnified Person to represent the Indemnified Person and any others Company
                                         may designate in such proceeding and shall pay the reasonable fees and expenses of such
                                         counsel related to such proceeding. Company shall not be liable for any settlement of
                                         any proceeding effected without its written consent, but if settled with such consent
                                         or if there be a final judgment for the plaintiff, Company agrees to indemnify any Indemnified
                                         Person from and against any loss or liability by reason of such settlement or judgment.
                                         Company shall not, without the prior written consent of the Indemnified Person, effect
                                         any settlement of any pending or threatened proceeding in respect of which any Indemnified
                                         Person is a party and indemnity could have been sought hereunder by such Indemnified
                                         Person, unless such settlement includes an unconditional release of such Indemnified
                                         Person from all liability on claims that are the subject matter of such proceeding on
                                         terms reasonably satisfactory to such Indemnified Person. If the indemnification provided
                                         for in this paragraph is unavailable to an Indemnified Person or insufficient in respect
                                         of any losses, claims, damages or liabilities referred to therein, then Company under
                                         such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute
                                         to the amount paid or payable by such Indemnified Person as a result of such losses,
                                         claims, damages or liabilities. The remedies provided for in this paragraph are not exclusive
                                         and shall not limit any rights or remedies which may otherwise be available to any Indemnified
                                         Person at law or in equity. The indemnity and contribution agreements contained in this
                                         paragraph shall remain operative and in full force and effect regardless of the termination
                                         of the Transaction.

 

 

17
Insert the number of Shares outstanding that would cause Dealer’s current position in the Warrants (including
the number of Warrants if the greenshoe is exercised in full, and any warrants under pre-existing warrant transactions with Company)
to increase by 0.5%, based upon dealer with highest applicable percentage.

18
Insert the number of Shares that, if repurchased, would cause Dealer’s current position in the Warrants (including
the number of Warrants if the greenshoe is exercised in full, and any warrants under pre-existing warrant transactions with Company)
to increase by a further 0.5% from the threshold for the first Repurchase Notice, based upon dealer with highest applicable percentage.

 

    	 	14	 

     

    

 

		(c)	Regulation M. Company
                                         is not on the Trade Date engaged in a distribution, as such term is used in Regulation
                                         M under the Exchange Act, of any securities of Company, other than a distribution meeting
                                         the requirements of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation
                                         M. Company shall not, until the second Scheduled Trading Day immediately following the
                                         Effective Date, engage in any such distribution.

 

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

 

		(e)	Transfer or Assignment.
                                         Company may not transfer any of its rights or obligations under the Transaction without
                                         the prior written consent of Dealer. Dealer may, without Company’s consent, transfer
                                         or assign (such transfer or assignment, a “Transfer”) all or any part
                                         of its rights or obligations under the Transaction to any third party; provided
                                         that, (i) as a result of any such Transfer, Company will not be required to pay the transferee
                                         or assignee of such rights or obligations on any payment date an amount under Section
                                         2(d)(i)(4) of the Agreement greater than the amount, if any, that Company would have
                                         been required to pay Dealer in the absence of such Transfer and (ii) upon written request,
                                         the transferee or assignee shall provide Company with a complete and accurate U.S. Internal
                                         Revenue Service Form W-9 or W-8 (as applicable) prior to becoming a party to the Transaction;
                                         provided further that Dealer shall provide written notice to Company following
                                         any such Transfer. If at any time at which (A) the Section 16 Percentage exceeds 8.0%,
                                         (B) the Warrant Equity Percentage exceeds 14.5%, or (C) the Share Amount exceeds the
                                         Applicable Share Limit (if any applies) (any such condition described in clauses (A),
                                         (B) or (C), an “Excess Ownership Position”), Dealer, acting in good
                                         faith, is unable after using its commercially reasonable efforts to effect a transfer
                                         or assignment of Warrants to a third party on pricing terms reasonably acceptable to
                                         Dealer and within a time period reasonably acceptable to Dealer such that no Excess Ownership
                                         Position exists, then Dealer may designate any Exchange Business Day as an Early Termination
                                         Date with respect to a portion of the Transaction (the “Terminated Portion”),
                                         such that following such partial termination no Excess Ownership Position exists. In
                                         the event that Dealer so designates an Early Termination Date with respect to a Terminated
                                         Portion, a payment shall be made pursuant to Section 6 of the Agreement as if (1) an
                                         Early Termination Date had been designated in respect of a Transaction having terms identical
                                         to the Transaction and a Number of Warrants equal to the number of Warrants underlying
                                         the Terminated Portion, (2) Company were the sole Affected Party with respect to such
                                         partial termination and (3) the Terminated Portion were the sole Affected Transaction
                                         (and, for the avoidance of doubt, the provisions of Section ‎9(j) shall apply to
                                         any amount that is payable by Company to Dealer pursuant to this sentence as if Company
                                         was not the Affected Party). The “Section 16 Percentage” as of any
                                         day is the fraction, expressed as a percentage, (A) the numerator of which is the number
                                         of Shares that Dealer and 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 “Warrant Equity Percentage” as of any day is the
                                         fraction, expressed as a percentage, (A) the numerator of which is the sum of (1) the
                                         product of the Number of Warrants and the Warrant Entitlement and (2) the aggregate number
                                         of Shares underlying any other warrants purchased by Dealer from Company, and (B) the
                                         denominator of which is the number of Shares outstanding. The “Share Amount”
                                         as of any day is the number of Shares that Dealer and any person whose ownership position
                                         would be aggregated with that of Dealer (Dealer or any such person, a “Dealer
                                         Person”) under any law, rule, regulation, regulatory order or organizational
                                         documents or contracts of Company that are, in each case, applicable to ownership of
                                         Shares (“Applicable Restrictions”), owns, beneficially owns, constructively
                                         owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership
                                         under any Applicable Restriction, as determined by Dealer in its reasonable discretion.
                                         The “Applicable Share Limit” means a number of Shares equal to (A)
                                         the minimum number of Shares that could give rise to reporting or registration obligations
                                         or other requirements (including obtaining prior approval from any person or entity)
                                         of a Dealer Person, or could result in an adverse effect on a Dealer Person, under any
                                         Applicable Restriction, as determined by Dealer in its reasonable discretion, minus
                                         (B) 1% of the number of Shares outstanding. Notwithstanding any other provision in
                                         this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive
                                         or deliver any Shares or other securities, or make or receive any payment in cash, to
                                         or from Company, Dealer may designate any of its affiliates to purchase, sell, receive
                                         or deliver such Shares or other securities, or make or receive such payment in cash,
                                         and otherwise to perform Dealer’s obligations in respect of the Transaction and
                                         any such designee may assume such obligations. Dealer shall be discharged of its obligations
                                         to Company to the extent of any such performance.

 

    	 	15	 

     

    

 

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

 

		(g)	[Role of Agent. Each
                                         of Dealer and Company acknowledges to and agrees with the other party hereto and to and
                                         with the Agent that (i) the Agent is acting as agent for Dealer under the Transaction
                                         pursuant to instructions from such party, (ii) the Agent is not a principal or party
                                         to the Transaction, and may transfer its rights and obligations with respect to the Transaction,
                                         (iii) the Agent shall have no responsibility, obligation or liability, by way of issuance,
                                         guaranty, endorsement or otherwise in any manner with respect to the performance of either
                                         party under the Transaction, (iv) Dealer and the Agent have not given, and Company is
                                         not relying (for purposes of making any investment decision or otherwise) upon, any statements,
                                         opinions or representations (whether written or oral) of Dealer or the Agent, other than
                                         the representations expressly set forth in this Confirmation or the Agreement, and (v)
                                         each party agrees to proceed solely against the other party, and not the Agent, to collect
                                         or recover any money or securities owed to it in connection with the Transaction. Each
                                         party hereto acknowledges and agrees that the Agent is an intended third party beneficiary
                                         hereunder. Company acknowledges that the Agent is an affiliate of Dealer. Dealer will
                                         be acting for its own account in respect of this Confirmation and the Transaction contemplated
                                         hereunder.]19[Reserved.]20

 

		(h)	Additional Provisions.

 

		(i)	Amendments to the
                                         Equity Definitions:

 

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

 

 

19
Include for Barclays.

20
Include for GS.

 

    	 	16	 

     

    

 

		(B)	Section 11.2(c) of the Equity Definitions
                                         is hereby amended by (w) replacing the words “a diluting or concentrative”
                                         with “a material” in the fifth line thereof, (x) adding the phrase “or
                                         Warrants” after the words “the relevant Shares” in the same sentence,
                                         (y) deleting the words “diluting or concentrative” in the sixth to last
                                         line thereof and (z) deleting the phrase “(provided that no adjustments will be
                                         made to account solely for changes in volatility, expected dividends, stock loan rate
                                         or liquidity relative to the relevant Shares)” and replacing it with the phrase
                                         “(provided that, solely in the case of Sections
                                         11.2(e)(i), (ii)(A), (iv) and (v), no adjustments will be made to account solely for
                                         changes in volatility, expected dividends, stock loan rate or liquidity relative to the
                                         relevant Shares but, for the avoidance of doubt, solely in the case of Sections 11.2(e)(ii)(B)
                                         through (D), (iii), (vi) and (vii), adjustments may be made to account solely for changes
                                         in volatility, expected dividends, stock loan rate or liquidity relative to the
                                         relevant Shares).”

 

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

 

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

 

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

 

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

 

		(y)	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.

 

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

 

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

 

		(y)	(1) deleting subsection (C) in its
                                         entirety, (2) deleting the word “or” immediately preceding subsection (C),
                                         (3) deleting the penultimate sentence in its entirety and replacing it with the sentence
                                         “The Hedging Party will determine the Cancellation Amount payable by one party
                                         to the other.” and (4) deleting clause (X) in the final sentence.

 

    	 	17	 

     

    

 

		(ii)	Notwithstanding anything to the
                                         contrary in this Confirmation, upon the occurrence of one of the following events, with
                                         respect to the Transaction, (1) Dealer shall have the right to designate such event an
                                         Additional Termination Event and designate an Early Termination Date pursuant to Section
                                         6(b) of the Agreement, (2) Company shall be deemed the sole Affected Party with respect
                                         to such Additional Termination Event and (3) the Transaction, or, at the election of
                                         Dealer in its sole discretion, any portion of the Transaction, shall be deemed the sole
                                         Affected Transaction; provided that if Dealer so designates an Early Termination
                                         Date with respect to a portion of the Transaction, (a) a payment shall be made pursuant
                                         to Section 6 of the Agreement as if an Early Termination Date had been designated in
                                         respect of a Transaction having terms identical to the Transaction and a Number of Warrants
                                         equal to the number of Warrants included in the terminated portion of the Transaction,
                                         and (b) for the avoidance of doubt, the Transaction shall remain in full force and
                                         effect except that the Number of Warrants shall be reduced by the number of Warrants
                                         included in such terminated portion:

 

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

 

		(B)	Consummation of (I) any recapitalization,
                                         reclassification or change of the Shares (other than changes resulting from a subdivision
                                         or combination) as a result of which the Shares would be converted into, or exchanged
                                         for, stock, other securities, other property or assets, (II) any share exchange, consolidation
                                         or merger of Company pursuant to which the Shares will be converted into cash, securities
                                         or other property or assets or (III) any sale, lease or other transfer in one transaction
                                         or a series of transactions of all or substantially all of the consolidated assets of
                                         Company and its subsidiaries, taken as a whole, to any person other than one of Company’s
                                         wholly owned subsidiaries.

 

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

 

		(D)	On any day during the period from
                                         and including the Trade Date, to and including the final Expiration Date, (I) the Notional
                                         Unwind Shares (as defined below) as of such day exceeds a number of Shares equal to 75%
                                         of the Maximum Number of Shares as of such day, or (II) Company makes a public announcement
                                         of any transaction or event that, in the reasonable opinion of Dealer would, upon consummation
                                         of such transaction or upon the occurrence of such event, as applicable, and after giving
                                         effect to any applicable adjustments hereunder, cause the Notional Unwind Shares immediately
                                         following the consummation of such transaction or the occurrence of such event to exceed
                                         a number of Shares equal to 75% of the Maximum Number of Shares for such day. The “Notional
                                         Unwind Shares” as of any day is a number of Shares equal to (1) the amount
                                         that would be payable pursuant to Section 6 of the Agreement (determined as of such day
                                         as if an Early Termination Date had been designated in respect of the Transaction and
                                         as if Company were the sole Affected Party and the Transaction were the sole Affected
                                         Transaction), divided by (2) the Settlement Price (determined as if such day were
                                         a Valuation Date).

 

Notwithstanding
the foregoing, a transaction or transactions or event or events set forth in clause ‎(A) or clause ‎(B) of this Section
 ‎9(h)(ii) shall not constitute an Additional Termination Event if (x) at least 90% of the consideration received or to be
received by holders of the Shares, excluding cash payments for fractional Shares and cash payments made in respect of dissenters’
appraisal rights, in connection with such transaction or transactions or event or events consists of shares of common stock that
are listed or quoted on any of The New York Stock Exchange, The Nasdaq Global Select Market or The Nasdaq Global Market (or any
of their respective successors) or will be so listed or quoted when issued or exchanged in connection with such transaction or
transactions or event or events, and (y) as a result of such transaction or transactions or event or events, the Shares will consist
of such consideration, excluding cash payments for fractional Shares and cash payments made in respect of dissenters’ appraisal
rights.

 

    	 	18	 

     

    

 

		(i)	No Setoff. 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.

 

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

 

		(i)	If (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 all holders of Shares
                                         consists solely of cash, (ii) a Merger Event or Tender Offer that is within Company’s
                                         control, or (iii) an Event of Default in which Company is the Defaulting Party or a Termination
                                         Event in which Company is the Affected Party 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 Company’s control), and if Company would owe any
                                         amount to Dealer 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
                                         Obligation”), then Company shall satisfy the Payment Obligation by the Share
                                         Termination Alternative (as defined below), unless (a) Company gives irrevocable
                                         telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no
                                         later than 12:00 p.m. (New York City time) on the Merger Date, Tender Offer Date, Announcement
                                         Date (in the case of a Nationalization, Insolvency or Delisting), Early Termination Date
                                         or date of cancellation, as applicable, of its election that the Share Termination Alternative
                                         shall not apply, (b) Company remakes the representation set forth in Section ‎8(a)(vi)
                                         as of the date of such election and (c) Dealer agrees, in its sole discretion, to such
                                         election, in which case the provisions of Section 12.7 or Section 12.9 of the Equity
                                         Definitions, or the provisions of Section 6(d)(ii) of the Agreement, as the case may
                                         be, shall apply.

 

	 	Share Termination Alternative:	If applicable, Company shall deliver to
                                         Dealer the Share Termination Delivery Property on the date (the “Share Termination
                                         Payment Date”) on which the Payment Obligation would otherwise be due pursuant
                                         to Section 12.7 or Section 12.9 of the Equity Definitions or Section 6(d)(ii) of the
                                         Agreement, as applicable, subject to Section ‎9(k)(i) below, in satisfaction, subject
                                         to Section ‎9(k)(ii) below, of the relevant Payment Obligation, in the manner reasonably
                                         requested by Dealer free of payment.
	 	 	 
		Share Termination Delivery Property:	A
                                         number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal
                                         to the relevant Payment Obligation divided by the Share Termination Unit Price.
                                         The Calculation Agent shall adjust the amount of Share Termination Delivery Property
                                         by replacing any fractional portion of a security therein with an amount of cash equal
                                         to the value of such fractional security based on the values used to calculate the Share
                                         Termination Unit Price (without giving effect to any discount pursuant to Section ‎9(k)(i)).

 

    	 	19	 

     

    

 

	 	Share Termination Unit Price:	The
                                         value to Dealer of property contained in one Share Termination Delivery Unit on the date
                                         such Share Termination Delivery Units are to be delivered as Share Termination Delivery
                                         Property, as determined by the Calculation Agent in its discretion by commercially reasonable
                                         means. In the case of a Private Placement of Share Termination Delivery Units that are
                                         Restricted Shares (as defined below), as set forth in Section ‎9(k)(i) below, the
                                         Share Termination Unit Price shall be determined by the discounted price applicable to
                                         such Share Termination Delivery Units, determined in a commercially reasonable manner
                                         taking into consideration the liquidity of such Share Termination Delivery Units. In
                                         the case of a Registration Settlement of Share Termination Delivery Units that are Restricted
                                         Shares (as defined below) as set forth in Section ‎9(k)(ii) below, notwithstanding
                                         the foregoing, the Share Termination Unit Price shall be the Settlement Price on the
                                         Merger Date, Tender Offer Date, Announcement Date (in the case of a Nationalization,
                                         Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable.
                                         The Calculation Agent shall notify Company of the Share Termination Unit Price at the
                                         time of notification of such Payment Obligation to Company or, if applicable, at the
                                         time the discounted price applicable to the relevant Share Termination Units is determined
                                         pursuant to Section ‎9(k)(i).
	 	 	 
	 	Share Termination Delivery Unit:	One Share or, if the Shares have changed
                                         into cash or any other property or the right to receive cash or any other property as
                                         the result of a Nationalization, Insolvency or Merger Event (any such cash or other property,
                                         the “Exchange Property”), a unit consisting of the type and amount
                                         of Exchange Property received by a holder of one Share (without consideration of any
                                         requirement to pay cash or other consideration in lieu of fractional amounts of any securities)
                                         in such Nationalization, Insolvency or Merger Event. If such Nationalization, Insolvency
                                         or Merger Event involves a choice of Exchange Property to be received by holders, such
                                         holder shall be deemed to have elected to receive the maximum possible amount of cash.
	 	 	 
	 	Failure to Deliver:	Inapplicable
	 	 	 
	 	Other applicable provisions:	If Share Termination Alternative is applicable,
                                         the provisions of Sections 9.8, 9.9, 9.11 and 9.12 (as modified above) of the Equity
                                         Definitions will be applicable, except that all references in such provisions to “Physically-settled”
                                         shall be read as references to “Share Termination Settled” and all references
                                         to “Shares” shall be read as references to “Share Termination Delivery
                                         Units”. “Share Termination Settled” in relation to the Transaction
                                         means that the Share Termination Alternative is applicable to the Transaction.

 

    	 	20	 

     

    

 

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

 

		(i)	If Company elects to settle the Transaction
                                         pursuant to this clause (i) (a “Private Placement Settlement”), then
                                         delivery of Restricted Shares by Company shall be effected in customary private placement
                                         procedures with respect to such Restricted Shares reasonably acceptable to Dealer; provided
                                         that Company may not elect a Private Placement Settlement if, on the date of its
                                         election, it has taken, or caused to be taken, any action that would make unavailable
                                         either the exemption pursuant to Section 4(a)(2) of the Securities Act for the sale by
                                         Company to Dealer (or any affiliate designated by Dealer) of the Restricted Shares or
                                         the exemption pursuant to Section 4(a)(1) or Section 4(a)(3) of the Securities Act for
                                         resales of the Restricted Shares by Dealer (or any such affiliate of Dealer). The Private
                                         Placement Settlement of such Restricted Shares shall include customary representations,
                                         covenants, blue sky and other governmental filings and/or registrations, indemnities
                                         to Dealer, due diligence rights (for Dealer or any designated buyer of the Restricted
                                         Shares by Dealer that is not a major competitor of Company previously identified by Company
                                         to Dealer in writing, in each case, that agrees to enter into a confidentiality agreement
                                         with Company in customary form for due diligence investigations similar in scope), opinions
                                         and certificates, and such other documentation as is customary for private placement
                                         agreements for private placements of equity securities of comparable size of companies
                                         of comparable size, maturity and line of business, all reasonably acceptable to Dealer.
                                         In the case of a Private Placement Settlement, Dealer shall determine a commercially
                                         reasonable discount to the Share Termination Unit Price (in the case of settlement of
                                         Share Termination Delivery Units pursuant to Section ‎9(j) above) or any Settlement
                                         Price (in the case of settlement of Shares pursuant to Section ‎2 above) applicable
                                         to such Restricted Shares in a commercially reasonable manner and appropriately adjust
                                         the number of such Restricted Shares to be delivered to Dealer hereunder, which discount
                                         shall only take into account the illiquidity resulting from the fact that the Restricted
                                         Shares will not be registered for resale and any commercially reasonable fees and expenses
                                         of Dealer (and any affiliate thereof) in connection with such resale. Notwithstanding
                                         anything to the contrary in the Agreement or this Confirmation, the date of delivery
                                         of such Restricted Shares shall be the Exchange Business Day following notice by Dealer
                                         to Company, of such applicable discount and the number of Restricted Shares to be delivered
                                         pursuant to this clause (i). For the avoidance of doubt, delivery of Restricted Shares
                                         shall be due as set forth in the previous sentence and not be due on the Share Termination
                                         Payment Date (in the case of settlement of Share Termination Delivery Units pursuant
                                         to Section ‎9(j) above) or on the Settlement Date for such Restricted Shares (in
                                         the case of settlement in Shares pursuant to Section ‎2 above).

 

    	 	21	 

     

    

 

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

 

    	 	22	 

     

    

 

		(iii)	Without limiting the generality
                                         of the foregoing, Company agrees that (A) any Restricted Shares delivered to Dealer may
                                         be transferred by and among Dealer and its affiliates and Company shall effect such transfer
                                         without any further action by Dealer and (B) after the period of 6 months from the Trade
                                         Date (or 1 year from the Trade Date if, at such time, informational requirements of Rule
                                         144(c) under the Securities Act are not satisfied with respect to Company) has elapsed
                                         in respect of any Restricted Shares delivered to Dealer, unless Dealer is an affiliate
                                         of Company at such time, or has been an affiliate of Company in the immediately preceding
                                         90 days, Company shall promptly remove, or cause the transfer agent for such Restricted
                                         Shares to remove, any legends referring to any such restrictions or requirements from
                                         such Restricted Shares upon request by Dealer (or such affiliate of Dealer) to Company
                                         or such transfer agent, without any requirement for the delivery of any certificate,
                                         consent, agreement, opinion of counsel, notice or any other document, any transfer tax
                                         stamps or payment of any other amount or any other action by Dealer (or such affiliate
                                         of Dealer). Notwithstanding anything to the contrary herein, to the extent the provisions
                                         of Rule 144 of the Securities Act or any successor rule are amended, or the applicable
                                         interpretation thereof by the Securities and Exchange Commission or any court change
                                         after the Trade Date, the agreements of Company herein shall be deemed modified to the
                                         extent necessary, in the opinion of outside counsel of Company, to comply with Rule 144
                                         of the Securities Act, as in effect at the time of delivery of the relevant Shares or
                                         Share Termination Delivery Property.

 

		(iv)	If the Private Placement Settlement
                                         or the Registration Settlement shall not be effected as set forth in clauses (i) or (ii),
                                         as applicable, then failure to effect such Private Placement Settlement or such Registration
                                         Settlement shall constitute an Event of Default with respect to which Company shall be
                                         the Defaulting Party.

 

		(l)	Limit on Beneficial Ownership.
                                         Notwithstanding any other provisions hereof, Dealer may not exercise any Warrant hereunder
                                         or be entitled to take delivery of any Shares deliverable hereunder, and Automatic Exercise
                                         shall not apply with respect to any Warrant hereunder, to the extent (but only to the
                                         extent) that, after such receipt of any Shares upon the exercise of such Warrant or otherwise
                                         hereunder [and after taking into account any Shares deliverable to Dealer under the Base
                                         Warrant Confirmation]21,
                                         (i) the Section 16 Percentage would exceed 8.0%, or (ii) the Share Amount would exceed
                                         the Applicable Share Limit. Any purported delivery hereunder shall be void and have no
                                         effect to the extent (but only to the extent) that, after such delivery [and after taking
                                         into account any Shares deliverable to Dealer under the Base Warrant Confirmation]22,
                                         (i) the Section 16 Percentage would exceed 8.0%, or (ii) the Share Amount would exceed
                                         the Applicable Share Limit. If any delivery owed to Dealer hereunder is not made, in
                                         whole or in part, as a result of this provision, Company’s obligation to make such
                                         delivery shall not be extinguished and Company shall make such delivery as promptly as
                                         practicable after, but in no event later than one Business Day after, Dealer gives notice
                                         to Company that, after such delivery, (i) the Section 16 Percentage would not exceed
                                         8.0%, and (ii) the Share Amount would not exceed the Applicable Share Limit.

 

		(m)	Share Deliveries.
                                         Notwithstanding anything to the contrary herein, Company agrees that any delivery of
                                         Shares or Share Termination Delivery Property shall be effected by book-entry transfer
                                         through the facilities of DTC, or any successor depositary, if at the time of delivery,
                                         such class of Shares or class of Share Termination Delivery Property is in book-entry
                                         form at DTC or such successor depositary.

 

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

 

 

21
Include in Additional Warrant Confirmation.

22
Include in Additional Warrant Confirmation.

 

    	 	23	 

     

    

 

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

 

		(p)	Maximum Share Delivery.

 

		(i)	Notwithstanding any other provision
                                         of this Confirmation, the Agreement or the Equity Definitions, in no event will Company
                                         at any time be required to deliver a number of Shares greater than [Insert Number
                                         Equal to Two times the Number of Shares on the Trade Date] (the “Maximum Number
                                         of Shares”) to Dealer in connection with the Transaction.

 

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

 

		(q)	Right to Extend.
                                         Dealer may postpone or add, in a commercially reasonable manner, in whole or in part,
                                         any Expiration Date or any other date of valuation or delivery with respect to some or
                                         all of the relevant Warrants (in which event the Calculation Agent shall make appropriate
                                         adjustments to the Daily Number of Warrants with respect to one or more Expiration Dates)
                                         if Dealer determines, in its commercially reasonable judgment, that such extension is
                                         reasonably necessary or appropriate to preserve Dealer’s commercially reasonable
                                         hedging or hedge unwind activity hereunder in light of existing liquidity conditions
                                         or to enable Dealer to effect purchases of Shares in connection with its commercially
                                         reasonable hedging, hedge unwind or settlement activity hereunder in a manner that would,
                                         if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable
                                         legal, regulatory or self-regulatory requirements (“Requirements”),
                                         or with related policies and procedures applicable to Dealer adopted in good faith by
                                         Dealer in relation to such Requirements; provided that in no event shall any Expiration
                                         Date for the Transaction be postponed to a date later than the Final Expiration Date.

 

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

 

    	 	24	 

     

    

 

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

 

		(t)	Wall Street Transparency
                                         and Accountability Act. In connection with Section 739 of the Wall Street Transparency
                                         and Accountability Act of 2010 (“WSTAA”), the parties hereby agree
                                         that neither the enactment of WSTAA or any regulation under the WSTAA, nor any requirement
                                         under WSTAA or an amendment made by WSTAA, shall limit or otherwise impair either party’s
                                         otherwise applicable rights to terminate, renegotiate, modify, amend or supplement this
                                         Confirmation or the Agreement, as applicable, arising from a termination event, force
                                         majeure, illegality, increased costs, regulatory change or similar event under this Confirmation,
                                         the Equity Definitions incorporated herein, or the Agreement (including, but not limited
                                         to, rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging,
                                         an Excess Ownership Position, or Illegality (as defined in the Agreement)).

 

		(u)	Agreements and Acknowledgements
                                         Regarding Hedging. Company understands, acknowledges and agrees that: (A) at
                                         any time on and prior to the last Expiration Date, 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 securities in order to adjust its hedge position with
                                         respect to the Transaction; (B) Dealer and its affiliates also may be active in the market
                                         for Shares other than in connection with hedging activities in relation to the Transaction;
                                         (C) Dealer shall make its own determination as to whether, when or in what manner any
                                         hedging or market activities in securities of Issuer 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 Settlement Prices; and (D) any market activities of Dealer and its affiliates
                                         with respect to Shares may affect the market price and volatility of Shares, as well
                                         as the Settlement Prices, each in a manner that may be adverse to Company.

 

		(v)	Early Unwind. In
                                         the event the sale of the [“Firm Securities”]23[“Option
                                         Securities”]24
                                         (as defined in the Purchase Agreement) is not consummated with the Initial
                                         Purchasers for any reason, or Company fails to deliver to Dealer opinions of counsel
                                         as required pursuant to Section ‎9(a), in each case by 5:00 p.m. (New York City time)
                                         on the Premium Payment Date, or such later date as agreed upon by the parties (the Premium
                                         Payment Date or such later date the “Early Unwind Date”), the Transaction
                                         shall automatically terminate (the “Early Unwind”), on the Early Unwind
                                         Date and (i) the Transaction and all of the respective rights and obligations of Dealer
                                         and Company under the Transaction shall be cancelled and terminated and (ii) each party
                                         shall be released and discharged by the other party from and agrees not to make any claim
                                         against the other party with respect to any obligations or liabilities of the other party
                                         arising out of and to be performed in connection with the Transaction either prior to
                                         or after the Early Unwind Date. Each of Dealer and Company represents and acknowledges
                                         to the other that upon an Early Unwind, all obligations with respect to the Transaction
                                         shall be deemed fully and finally discharged.

 

		(w)	Payment by Dealer.
                                         In the event that (i) an Early Termination Date occurs or is designated with respect
                                         to the Transaction as a result of a Termination Event or an Event of Default (other than
                                         an Event of Default arising under Section 5(a)(ii) of the Agreement) and, as a result,
                                         Dealer owes to Company an amount calculated under Section 6(e) of the Agreement, or (ii)
                                         Dealer owes to Company, pursuant to Section 12.7 or Section 12.9 of the Equity Definitions,
                                         an amount calculated under Section 12.8 of the Equity Definitions, such amount shall
                                         be deemed to be zero.

 

 

23
Insert for Base Warrant Confirmation.

24
Insert for Additional Warrant Confirmation.

 

    	 	25	 

     

    

 

		(x)	Adjustments. For
                                         the avoidance of doubt, whenever the Calculation Agent or Determining Party is called
                                         upon to make an adjustment pursuant to the terms of this Confirmation or the Equity Definitions
                                         to take into account the effect of an event, the Calculation Agent or Determining Party
                                         shall make such adjustment by reference to the effect of such event on the Hedging Party,
                                         assuming that the Hedging Party maintains a commercially reasonable hedge position.

 

		(y)	Delivery or Receipt of Cash.
                                         For the avoidance of doubt, other than receipt of the Premium by Company, nothing in
                                         this Confirmation shall be interpreted as requiring Company to cash settle the Transaction,
                                         except in circumstances where cash settlement is within Company’s control (including,
                                         without limitation, where Company elects to deliver or receive cash, or where Company
                                         has made Private Placement Settlement unavailable due to the occurrence of events within
                                         its control) or in those circumstances in which holders of Shares would also receive
                                         cash.

 

		(z)	Listing of Warrant Shares.
                                         Company shall have submitted an application for the listing of the Warrant Shares on
                                         the Exchange, and such application and listing shall have been approved by the Exchange,
                                         subject only to official notice of issuance, in each case, on or prior to the Premium
                                         Payment Date. Company agrees and acknowledges that such submission and approval shall
                                         be a condition precedent for the purpose of Section 2(a)(iii) of the Agreement with respect
                                         to each obligation of Dealer under Section 2(a)(i) of the Agreement.

 

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

 

		(bb)	[Tax Matters.

 

		(i)	Payee Representations:

 

For the purpose of Section
3(f) of the Agreement, Company makes the following representation to Dealer:

 

Company is a corporation and
a U.S. person (as that term is defined in Section 7701(a)(30) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”)
and used in Section 1.1441-4(a)(3)(ii) of the United States Treasury Regulations) for U.S. federal income tax purposes.

 

For the purpose of Section
3(f) of the Agreement, Dealer makes the following representation to Company:

 

[(A) It is a “foreign
person” (as that term is used in Section 1.6041-4(a)(4) of the United States Treasury Regulations) for U.S. federal income
tax purposes; and

 

(B) Each payment received or
to be received by it in connection with this Agreement will be effectively connected with its conduct of a trade or business in
the United States.]25

 

[(A) Dealer is a U.S. person
(as that term is defined in Section 7701(a)(30) of the Code and used in Section 1.1441-4(a)(3)(ii) of the United States Treasury
Regulations) for U.S. federal income tax purposes.]26

 

		(ii)	Tax Documentation. For
                                         the purposes of Section 4(a)(i) of the Agreement, (1) Company shall provide to Dealer
                                         a valid United States Internal Revenue Service Form W-9 (or successor thereto), and (2)
                                         Dealer shall provide to Company a valid United States Internal Revenue Service Form [W-8ECI]27[W-9]28
                                         (or successor thereto), in each case, (A) on or before the date of execution
                                         of this Confirmation and (B) promptly upon learning that any such tax form previously
                                         provided by it has become obsolete or incorrect.

 

 

25
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26
Include for GS.

27
Include for Barclays.

28
Include for GS.

 

    	 	26	 

     

    

 

		(iii)	Withholding Tax Imposed on Payments
                                         to non-U.S. Counterparties under the Provisions Known as the Foreign Account Tax Compliance
                                         Act. “Indemnifiable Tax” as defined in Section 14 of the Agreement
                                         shall not include any U.S. federal withholding tax imposed or collected pursuant to Sections
                                         1471 through 1474 of the Code, any current or future regulations or official interpretations
                                         thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or
                                         any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental
                                         agreement entered into in connection with the implementation of such Sections of the
                                         Code (a “FATCA Withholding Tax”). For the avoidance of doubt, a FATCA
                                         Withholding Tax is a Tax the deduction or withholding of which is required by applicable
                                         law for the purposes of Section 2(d) of the Agreement.

 

		(iv)	HIRE Act. “Indemnifiable
                                         Tax”, as defined in Section 14 of the Agreement, shall not include any tax
                                         imposed on payments treated as dividends from sources within the United States under
                                         Section 871(m) of the Code or any regulations issued thereunder.

 

		(cc)	[Conduct Rules.
                                         Each party acknowledges and agrees to be bound by the Conduct Rules of the Financial
                                         Industry Regulatory Authority, Inc. applicable to transactions in options, and further
                                         agrees not to violate the position and exercise limits set forth therein.

 

		(dd)	Risk Disclosure Statement.
                                         Company represents and warrants that it has received, read and understands the OTC Options
                                         Risk Disclosure Statement provided by Dealer and a copy of the most recent disclosure
                                         pamphlet prepared by The Options Clearing Corporation entitled “Characteristics
                                         and Risks of Standardized Options”.

 

		(ee)	U.S. Resolution Stay Provisions.

 

		(i)	Recognition of the U.S. Special
                                         Resolution Regimes.

 

		(A)	In the event that Goldman
                                         Sachs & Co. LLC (“GS&Co.”) becomes subject to a proceeding
                                         under (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder
                                         or (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and
                                         the regulations promulgated thereunder (a “U.S. Special Resolution Regime”)
                                         the transfer from GS&Co. of this Confirmation, and any interest and obligation in
                                         or under, and any property securing, this Confirmation, will be effective to the same
                                         extent as the transfer would be effective under the U.S. Special Resolution Regime if
                                         this Confirmation, and any interest and obligation in or under, and any property securing,
                                         this Confirmation were governed by the laws of the United States or a state of the United
                                         States.

 

		(B)	In the event that GS&Co. or
                                         an Affiliate becomes subject to a proceeding under a U.S. Special Resolution Regime,
                                         any Default Rights (as defined in 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable
                                         (“Default Right”)) under this Confirmation that may be exercised against
                                         GS&Co. are permitted to be exercised to no greater extent than such Default Rights
                                         could be exercised under the U.S. Special Resolution Regime if this Confirmation were
                                         governed by the laws of the United States or a state of the United States.

 

		(ii)	Limitation on Exercise of Certain
                                         Default Rights Related to an Affiliate’s Entry Into Insolvency Proceedings.
                                         Notwithstanding anything to the contrary in this Confirmation, GS&Co. and Company
                                         expressly acknowledge and agree that:

 

		(A)	Company shall not be permitted
                                         to exercise any Default Right with respect to this Confirmation or any Affiliate Credit
                                         Enhancement that is related, directly or indirectly, to an Affiliate of GS&Co. becoming
                                         subject to receivership, insolvency, liquidation, resolution, or similar proceeding (an
                                         “Insolvency Proceeding”), except to the extent that the exercise of
                                         such Default Right would be permitted under the provisions of 12 C.F.R. 252.84, 12 C.F.R.
                                         47.5 or 12 C.F.R. 382.4, as applicable; and

 

    	 	27	 

     

    

 

		(B)	Nothing in this Confirmation shall
                                         prohibit the transfer of any Affiliate Credit Enhancement, any interest or obligation
                                         in or under such Affiliate Credit Enhancement, or any property securing such Affiliate
                                         Credit Enhancement, to a transferee upon or following an Affiliate of GS&Co. becoming
                                         subject to an Insolvency Proceeding, unless the transfer would result in the Company
                                         being the beneficiary of such Affiliate Credit Enhancement in violation of any law applicable
                                         to the Company.

 

		(iii)	U.S. Protocol. If Company
                                         has previously adhered to, or subsequently adheres to, the ISDA 2018 U.S. Resolution
                                         Stay Protocol as published by the International Swaps and Derivatives Association, Inc.
                                         as of July 31, 2018 (the “ISDA U.S. Protocol”), the terms of such
                                         protocol shall be incorporated into and form a part of this Confirmation and the terms
                                         of the ISDA U.S. Protocol shall supersede and replace the terms of this Section 9(dd).
                                         For purposes of incorporating the ISDA U.S. Protocol, GS&Co. shall be deemed to be
                                         a Regulated Entity, Company shall be deemed to be an Adhering Party, and this Confirmation
                                         shall be deemed to be a Protocol Covered Agreement. Capitalized terms used but not defined
                                         in this paragraph shall have the meanings given to them in the ISDA U.S. Protocol.

 

		(iv)	Preexisting In-Scope Agreements.
                                         GS&Co. and Company agree that to the extent there are any outstanding “in-scope
                                         QFCs,” as defined in 12 C.F.R. § 252.82(d), that are not excluded under 12
                                         C.F.R. § 252.88, between GS&Co. and Company that do not otherwise comply with
                                         the requirements of 12 C.F.R. § 252.2, 252.81–8 (each such agreement, a “Preexisting
                                         In-Scope Agreement”), then each such Preexisting In-Scope Agreement is hereby
                                         amended to include the foregoing provisions in this Section 9(dd), with references to
                                         “this Confirmation” being understood to be references to the applicable Preexisting
                                         In-Scope Agreement.

 

For the purposes
of this Section 9(ee), “Affiliate” is defined in, and shall be interpreted in accordance with, 12 U.S.C. §
1841(k), and “Credit Enhancement” means any credit enhancement or credit support arrangement in support of
the obligations of GS&Co. under or with respect to this Confirmation, including any guarantee, collateral arrangement (including
any pledge, charge, mortgage or other security interest in collateral or title transfer arrangement), trust or similar arrangement,
letter of credit, transfer of margin or any similar arrangement.]29

 

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

 

		(gg)	Method of Delivery.
                                         Whenever delivery of funds or other assets is required hereunder by or to Company, such
                                         delivery shall be effected through the Agent. In addition, all notices, demands and communications
                                         of any kind relating to the Transaction between Dealer and Company shall be transmitted
                                         exclusively through the Agent.

 

		(hh)	2013 EMIR Portfolio Reconciliation,
                                         Dispute Resolution and Disclosure Protocol. The parties agree that the terms
                                         of the 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol
                                         published by ISDA on July 19, 2013 (“Protocol”) apply to the Agreement as
                                         if the parties had adhered to the Protocol without amendment. In respect of the Attachment
                                         to the Protocol, (i) the definition of “Adherence Letter” shall be deemed
                                         to be deleted and references to “Adherence Letter” shall be deemed to be
                                         to this section (and references to “such party’s Adherence Letter”
                                         and “its Adherence Letter” shall be read accordingly), (ii) references to
                                         “adheres to the Protocol” shall be deemed to be “enters into the Agreement”,
                                         (iii) references to “Protocol Covered Agreement” shall be deemed to be references
                                         to the Agreement (and each “Protocol Covered Agreement” shall be read accordingly),
                                         and (iv) references to “Implementation Date” shall be deemed to be references
                                         to the date of this Confirmation. For the purposes of this section:

 

 

29
Include for GS.

 

    	 	28	 

     

    

 

		1.	Dealer is a Portfolio Data Sending
                                         Entity and Company is a Portfolio Data Receiving Entity;

 

		2.	Dealer and Company may use a Third
                                         Party Service Provider, and each of Dealer and Company consents to such use including
                                         the communication of the relevant data in relation to Dealer and Company to such Third
                                         Party Service Provider for the purposes of the reconciliation services provided by such
                                         entity.

 

		3.	The Local Business Days for such purposes
                                         in relation to Dealer and Company is New York, New York, USA.

 

		4.	The following are the applicable email
                                         addresses.

 

		Portfolio Data:	Dealer:
                                         MarginServicesPortRec@barclays.com
	 	 	 
	 	 	Company: [lhung@enphase.com]30
	 	 	 
	 	Notice of discrepancy:	Dealer:
                                         PortRecDiscrepancy@barclays.com
	 	 	 
	 	 	Company: [lhung@enphase.com]
	 	 	 
	 	Dispute Notice:	Dealer: EMIRdisputenotices@barclays.com
	 	 	 
	 	 	Company: [lhung@enphase.com]

 

		(ii)	NFC Representation Protocol.
                                         The parties agree that the provisions set out in the Attachment to the ISDA 2013 EMIR
                                         NFC Representation Protocol published by ISDA on March 8, 2013 (the “NFC Representation
                                         Protocol”) shall apply to the Agreement as if each party were an Adhering Party
                                         under the terms of the NFC Representation Protocol. In respect of the Attachment to the
                                         NFC Representation Protocol, (i) the definition of “Adherence Letter” shall
                                         be deemed to be deleted and references to “Adherence Letter” shall be deemed
                                         to be to this section (and references to “the relevant Adherence Letter”
                                         and “its Adherence Letter” shall be read accordingly), (ii) references to
                                         “adheres to the Protocol” shall be deemed to be “enters into the Agreement”,
                                         (iii) references to “Covered Master Agreement” shall be deemed to be references
                                         to the Agreement (and each “Covered Master Agreement” shall be read accordingly),
                                         and (iv) references to “Implementation Date” shall be deemed to be references
                                         to the date of this Confirmation. Company confirms that it enters into this Confirmation
                                         as a party making the NFC Representation (as such term is defined in the NFC Representation
                                         Protocol). Company shall promptly notify Dealer of any change to its status as a party
                                         making the NFC Representation.

 

		(jj)	Acknowledgment regarding
                                         certain UK Resolution Authority Powers.

 

		(i)	Dealer is authorized by the Prudential
                                         Regulation Authority (“PRA”) and regulated by the Financial Conduct
                                         Authority and the PRA, and is subject to the Bank of England’s resolution authority
                                         powers, as contained in the EU Bank Recovery and Resolution Directive, and transposed
                                         in the UK by the Banking Act 2009. The powers include the ability to (a) suspend temporarily
                                         the termination and security enforcement rights of parties to a qualifying contract,
                                         and/or (b) bail-in certain liabilities owed by Dealer including the writing-down of the
                                         value of certain liabilities and/or the conversion of such liabilities into equity holdings
                                         (as described in further detail below). Pursuant to PRA requirements, Dealer is required
                                         to ensure that counterparties to certain agreements it enters into which are governed
                                         by non-EEA law contractually recognize the validity and applicability of the above-mentioned
                                         resolution powers, in order to ensure their effectiveness in cross border scenarios.

 

 

30
Company’s counsel to confirm.

 

    	 	29	 

     

    

 

		(ii)	The terms of this
                                         section apply only to the Transaction and constitute our entire agreement in relation
                                         to the matters contained in this section, and do not extend or amend the resolution authority
                                         powers of the Bank of England or any replacement authority. The terms of this section
                                         may not be amended by any other agreements, arrangements or understandings between Dealer
                                         and Company. By signing the Transaction, Company acknowledges and agrees that, notwithstanding
                                         the governing law of the Transaction, the Transaction is subject to, and Company will
                                         be bound by the effect of an application of, the Bank of England’s (or replacement
                                         resolution authority’s) powers to (a) stay termination and/or security enforcement
                                         rights, and (b) bail-in liabilities.]31

 

 

31
Include for Barclays.

 

    	 	30	 

     

    

 

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

 

	 	Very truly yours,
	 	 	 
	 	 	 
	 	 	[BARCLAYS
    BANK PLC
	 	 	 
	 	 	 
	 	 	By:	                      
	 	 	Name:
	 	 	Title: Authorised
    Signatory]32
	 	 	 
	 	 	 
	 	 	[GOLDMAN
    SACHS & CO. LLC
	 	 	 
	 	 	 
	 	 	By:	                      
	 	 	Authorized
    Signatory
	 	 	Name:]33

 

 

	Accepted
    and confirmed

    as of the Trade Date:	 
	 	 
	Enphase
    Energy, Inc.	 
	 	 
	 	 
	By:	                        	 
	Authorized
    Signatory	 
	Name:	 

 

 

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33
Include for GS.pmbc10kexhibit42descript

                                                                        Exhibit 4.2                                                   DESCRIPTION OF SECURITIES OF PACIFIC MERCANTILE BANCORP               REGISTERED  UNDER SECTION 12 OF THE EXCHANGE ACT                 The authorized  capital  stock of Pacific  Mercantile  Bancorp  (the “Company”) consists  of  85,000,000 shares of common stock, no par value per share, 2,000,000 shares of non-voting common stock,  no par value per share, and 2,000,000 undesignated shares of preferred stock, no par value per share.          Description of Common Stock                 As of December 31, 2019, the Company had one class of securities registered under the Securities  Exchange Act of 1934, as amended: common stock. The following description of the Company’s common  stock is a summary and does not describe every right, term or condition of owning the common stock. The  description is subject to and qualified by reference to the Company’s articles of incorporation and bylaws,  and certain provisions of applicable law, including California law and certain federal laws governing bank  holding companies.           Fully Paid and Nonassessable                 All of the outstanding shares of common stock are fully-paid and non-assessable.     Voting Rights                 Holders of common stock are entitled to one vote for each share held on all matters submitted to a  vote of shareholders, provided that shareholders may cumulate votes in the election of the Company’s  directors (that is, to give any candidate, or any number of candidates, standing for election a number of  votes  equal  to  the  number  of  directors  to  be  elected  multiplied  by  the  number  of  votes  to  which  the  shareholder’s shares are entitled). The candidates who receive the highest number of votes will be elected  as directors.     Dividends                 Subject to the preference in dividend rights of any series of preferred stock which the Company  may issue in the future, the holders of common stock are entitled to receive such cash dividends, if any, as  may be declared by the Company’s Board of Directors out of legally available funds; provided, that no  dividend may be declared or paid on shares of common stock unless a dividend of equal amount is also  concurrently declared or paid, as applicable, on non-voting common stock.    Liquidation, Dissolution and Winding Up                 Upon liquidation, dissolution or winding up, after payment of all debts and liabilities, including  funds of depositors, and after payment of the liquidation preferences of any shares of preferred stock then  outstanding, all assets that are legally available for distribution shall be distributed to the holders of the  common stock and the non-voting common stock pro rata based, respectively, on the number of shares of  common stock outstanding at such time and the number of shares of common stock into which the non- voting common stock outstanding at such time then be convertible based on the then-effective conversion  ratio.     No Preemptive or Similar Rights            SMRH:4833-4125-0740.2                -1-                                                                                                                         

 

         Holders  of  common  stock have  no  preemptive  or  other subscription  rights,  and  there  are  no  conversion rights or redemption or sinking fund provisions with respect to the common stock.     Anti-Takeover Provisions of the Articles of Incorporation and the Bylaws           Set forth below is a summary of the provisions of the Company’s articles of incorporation and  bylaws that could have the effect of delaying or preventing a change in control of the Company.  The  following description is only a summary and it is qualified by refence to the articles of incorporation, the  bylaws and relevant provisions of the California General Corporation Law.          Blank Check Preferred Stock          The Company’s articles of incorporation authorization of undesignated preferred stock permits  the Company’s Board of Directors to issue preferred stock with voting or other rights or preferences that  could impede the success of any attempt to change control of the Company. For example, the Board of  Directors, without shareholder approval, may issue preferred stock with voting or conversion rights which  could adversely affect the voting power of the holders of common stock as well as rights to acquire  preferred stock in connection with implementing a shareholder rights plan. This provision may be deemed  to have a potential anti-takeover effect, because the issuance of such preferred stock may delay or prevent  a change of control of the Company. Furthermore, shares of preferred stock, if any are issued, may have  other rights, including economic rights, senior to common stock, and, as a result, the issuance thereof  could depress the market price of the common stock.    Advance Notice Requirements for Shareholder Proposals and Director Nominees          The Company’s bylaws provide that shareholders seeking to make nominations of candidates for  election as directors or to bring other business before a meeting of shareholders, must provide timely  notice of their intent in writing. To be timely, a shareholder’s notice must be delivered to the Secretary at  the Company’s principal executive offices not less than the close of business on the 90th day nor earlier  than the close of business on the 120th day prior to the first anniversary date of the immediately preceding  annual meeting of shareholders. However, in the event that the date of the annual meeting is more than 30  days before or more than 60 days after such anniversary date, notice must be received no earlier than the  close of business on the 120th day prior to such annual meeting and not later than the close of business on  the later of the 90th day prior to such annual meeting, or the 10th day following the day on which public  announcement of the date of such meeting is first made by us. The bylaws also specify certain  requirements as to the form and content of a shareholder’s notice. These provisions may restrict the  ability of the Company’s shareholders to bring business before, or to make nominations for directors at, a  shareholder meeting.      Listing           The Company’s common stock is listed on the Nasdaq Global Select Market under the trading  symbol “PMBC.”               SMRH:4833-4125-0740.2                -2-

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