Document:

Exhibit 10.1

 

[Dealer]

 

	
 
    	
[             ],   2018
    

 

To:                             Plug Power Inc.
 968 Albany Shaker Road
 Latham, NY  12110

	
Attention:
    	
Gerard L. Conway Jr.
    
	
Telephone No.:
    	
(518) 738-0970
    
	
Facsimile No.:
    	
(518) 782-7884
    

 

Re:                             [Base][Additional] Call Option Transaction

 

The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of the call option transaction entered into on the Trade Date specified below (the “Transaction”) between [Dealer] (“Dealer”), and Plug Power Inc. (“Counterparty”).  This communication constitutes a “Confirmation” as referred to in the Agreement specified below.

 

1.              This Confirmation is subject to, and incorporates, the definitions and provisions of the 2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions” and, together with the 2006 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  Certain defined terms used herein have the meanings assigned to them in the preliminary Offering Memorandum dated March [  ], 2018 (the “Offering Memorandum”) relating to the USD[100,000,000] principal amount of [    ]% Convertible Senior Notes due 2023 (the “Base Convertible Securities”) issued by Counterparty (as increased by up to an additional USD[15,000,000] principal amount of [   ]% Convertible Senior Notes due 2023 [that may be](1) issued pursuant to the option to purchase additional convertible securities [exercised on the date hereof](2) (the “Optional Convertible Securities” and, together with the Base Convertible Securities, the “Convertible Securities”)) pursuant to an Indenture [to be] dated March [  ], 2018 between Counterparty and Wilmington Trust, National Association, as trustee (the “Indenture”).  In the event of any inconsistency between the terms defined in the Indenture and this Confirmation, this Confirmation shall govern.  The parties acknowledge that this Confirmation is entered into on the date hereof with the understanding that (i) definitions set forth in the Indenture that are also defined herein by reference to the Indenture and (ii) sections of the Indenture that are referred to herein, in each case, will conform to the descriptions thereof in the Offering Memorandum.  If any such definitions in the Indenture or any such sections of the Indenture differ from the descriptions thereof in the Offering Memorandum, the descriptions thereof in the Offering Memorandum will govern for purposes of this Confirmation.  [For the avoidance of doubt, subject to the foregoing, references herein to sections of the Indenture are based on the draft of the Indenture most recently reviewed by the parties at the time of execution of this Confirmation.  If any relevant sections of the Indenture are changed, added or renumbered between the execution of this Confirmation and the execution of the Indenture, the parties will amend this Confirmation in good faith and in a commercially reasonable manner to preserve the economic intent of the parties, as evidenced by such draft of the Indenture.  In addition, subject to the foregoing, the](3) [The](4) parties acknowledge that references to the Indenture herein are references to the Indenture as in effect on the date of its execution and if the Indenture is, or the Convertible Securities are, amended, modified or supplemented following the date of their execution, any such amendment, modification or supplement (other than any amendment, modification or supplement (i) pursuant to Section 14.07 of the Indenture, subject to the provisions opposite the caption “Discretionary Adjustments” in Section 2 hereof, or (ii) pursuant to Section 10.01(n) of the Indenture that, as determined by the Calculation Agent in good

 

(1)  Include for base capped call.

(2)  Include for additional capped call.

(3)  Include for Base Call Option Transaction Confirmation or the Additional Call Option Transaction Confirmation if signed before the closing date.

(4)  Include for Additional Call Option Transaction Confirmation if signed on or after the closing date.

 

 

faith and in a commercially reasonable manner, conforms the Indenture to the description of Convertible Securities in the Offering Memorandum) will be disregarded for purposes of this Confirmation unless the parties agree otherwise in writing.

 

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.

 

This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement (Multicurrency—Cross Border) as if Dealer and Counterparty had executed an agreement in such form on the date hereof (but without any Schedule except for (i) the election of Loss and Second Method and US Dollars (“USD”) as the Termination Currency, (ii) the replacement of the word “third” in the last line of Section 5(a)(i) of the Agreement with the word “first”, (iii) the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine) and (iv) the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Dealer with a “Threshold Amount” of three percent of Dealer’s parent’s shareholders’ equity; provided that (A) “Specified Indebtedness” shall not include obligations in respect of deposits received in the ordinary course of Dealer’s banking business, (B) the phrase “or becoming capable at such time of being declared” shall be deleted from clause (1) of such Section 5(a)(vi) and (C) the following language shall be added to the end of such Section 5(a)(vi): “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission of an administrative or operational nature; (y) funds were available to enable the party to make the payment when due; and (z) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.”).

 

All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein.  In the event of any inconsistency among this Confirmation, the Equity Definitions, the 2006 Definitions or the Agreement, the following shall prevail in the order of precedence indicated: (i) this Confirmation; (ii) the Equity Definitions; (iii) the 2006 Definitions; and (iv) the Agreement.  For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of this Confirmation, the Agreement, the Equity Definitions or the 2006 Definitions shall not be construed to exclude or limit any other provision of this Confirmation, the Agreement, the Equity Definitions or the 2006 Definitions.

 

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

 

2.              The Transaction constitutes 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:
    	
 
    	
[                     ],   2018
    
	
 
    	
 
    	
 
    
	
Effective Date:
    	
 
    	
The closing date of the [initial](5) issuance   of the Convertible Securities [issued pursuant to the option 
    

 

(5)  Include for base capped call.

 

2

 

	
 
    	
 
    	
to purchase additional   Convertible Securities exercised on the date hereof](6).
    
	
 
    	
 
    	
 
    
	
Option Style:
    	
 
    	
Modified American, as described under “Procedures   for Exercise” below.
    
	
 
    	
 
    	
 
    
	
Option Type:
    	
 
    	
Call
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The Common Stock of Counterparty, par value USD0.01   (Ticker Symbol: “PLUG”).
    
	
 
    	
 
    	
 
    
	
Number of   Options:
    	
 
    	
[ ].(7)  For the avoidance of doubt, the Number   of Options outstanding shall be reduced by each exercise of Options   hereunder. In no event will the Number of Options be less than zero.
    

 

	
Applicable Percentage:
    	
 
    	
[  ]%
    
	
 
    	
 
    	
 
    
	
Option   Entitlement:
    	
 
    	
A number equal to the product of the Applicable   Percentage and [     ]
    
	
 
    	
 
    	
 
    
	
Make-Whole   Adjustment:
    	
 
    	
Any adjustment to the Conversion Rate pursuant to   Section 14.03 of the Indenture.
    
	
 
    	
 
    	
 
    
	
Discretionary   Conversion Rate Increase:
    	
 
    	
Any adjustment to the Conversion Rate pursuant to   Section 14.04(h) of the Indenture.
    
	
 
    	
 
    	
 
    
	
Strike Price:
    	
 
    	
USD2.2920
    
	
 
    	
 
    	
 
    
	
Cap Price:
    	
 
    	
USD3.8200
    
	
 
    	
 
    	
 
    
	
Rounding of   Strike Price/
    	
 
    	
 
    
	
Cap Price/Option   Entitlement:
    	
 
    	
In connection with any adjustment to the Option   Entitlement, Strike Price or Cap Price, the Calculation Agent will round the   adjusted Option Entitlement to the nearest 0.0001 and the adjusted Strike   Price or Cap Price to the nearest USD0.0001, as the case may be.
    
	
 
    	
 
    	
 
    
	
Number of   Shares:
    	
 
    	
As of any date, a number of Shares equal to the   product of the Number of Options and the Option Entitlement.
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
USD[            ]
    
	
 
    	
 
    	
 
    
	
Premium Payment   Date:
    	
 
    	
The Effective Date
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The NASDAQ Capital Market
    
	
 
    	
 
    	
 
    
	
Related   Exchange:
    	
 
    	
All Exchanges
    
	
 
    	
 
    	
 
    
	
Procedures for Exercise:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exercise Dates:
    	
 
    	
Each Conversion Date.
    
	
 
    	
 
    	
 
    
	
Conversion Date:
    	
 
    	
[With respect to any conversion of a Convertible   Security (other than (x) any conversion of
    

(6)  Include for additional capped call.

(7)  For the Base Call Option Transaction Confirmation, this is equal to the number of Convertible Securities in principal amount of USD1,000 initially issued on the closing date for the Convertible Securities.  For the Additional Call Option Confirmation, this is equal to the number of additional Convertible Securities in principal amount of USD1,000.

 

3

 

	
 
    	
 
    	
Convertible Securities   with a “Conversion Date” (as defined in the Indenture) occurring prior to the   Free Convertibility Date or (y) any conversion of Convertible Securities   in respect of which holder(s) of such Convertible Securities would be   entitled to an increase in the Conversion Rate pursuant to a Make-Whole   Adjustment (any such conversion described in clause (x) or clause (y),   an “Early Conversion”), to which   the provisions of Section 8(b)(iii) of this Confirmation shall   apply), the date on which the holder of such Convertible Security satisfies   all of the requirements for conversion thereof as set forth in   Section 14.02(b) of the Indenture, provided that   no Conversion Date shall be deemed to have occurred with respect to Exchanged   Securities (such Convertible Securities, other than Exchanged Securities, the   “Relevant Convertible Securities” for   such Conversion Date).](8)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[With respect to any   conversion of a Convertible Security (other than (x) any conversion of   Convertible Securities with a “Conversion Date” (as defined in the Indenture)   occurring prior to the Free Convertibility Date or (y) any conversion of   Convertible Securities in respect of which holder(s) of such Convertible   Securities would be entitled to an increase in the Conversion Rate pursuant   to a Make-Whole Adjustment (any such conversion described in clause   (x) or clause (y), an “Early   Conversion”), to which the provisions of   Section 8(b)(iii) of this Confirmation shall apply), the date on   which the holder of such Convertible Security satisfies all of the   requirements for conversion thereof as set forth in   Section 14.02(b) of the Indenture for Convertible Securities that   are not “Relevant Convertible Securities” under (and as defined in) the   confirmation between the parties hereto regarding the Base Call Option   Transaction dated March [  ], 2018 (the “Base Call   Option Transaction Confirmation”), provided that   no Conversion Date shall be deemed to have occurred with respect to Exchanged   Securities (such Convertible Securities, other than Exchanged Securities, the   “Relevant Convertible Securities” for   such Conversion Date).  For the   purposes of determining whether any Convertible Securities will be Relevant   Convertible Securities hereunder or “Relevant Convertible Securities” under   the Base Call Option Transaction Confirmation, Convertible Securities that   are converted pursuant to the Indenture shall be allocated first to the Base   Call Option Transaction Confirmation until all Options thereunder are   exercised or terminated.](9)

 
    

 

(8)  Include for base capped call.

(9)  Include for additional capped call.

 

4

 

	
Free   Convertibility Date:
    	
 
    	
September 15, 2022
    
	
 
    	
 
    	
 
    
	
Exchanged   Securities:
    	
 
    	
With respect to any Conversion Date, any Convertible   Securities with respect to which Counterparty makes the election described in   Section 14.12 of the Indenture and the financial institution designated   by Counterparty accepts such Convertible Securities in accordance with   Section 14.12 of the Indenture, as long as Counterparty does not submit   a Notice of Exercise in respect thereof.
    
	
 
    	
 
    	
 
    
	
Expiration Time:
    	
 
    	
The Valuation Time
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
March 15, 2023, subject to earlier exercise
    
	
 
    	
 
    	
 
    
	
Automatic   Exercise on
    	
 
    	
 
    
	
Conversion   Dates:
    	
 
    	
Applicable, which means that on each Conversion Date   occurring on or after the Free Convertibility Date, a number of Options equal   to the number of Relevant Convertible Securities for such Conversion Date in   denominations of USD1,000 principal amount shall be automatically exercised,   subject to “Notice of Exercise” below.
    
	
 
    	
 
    	
 
    
	
Notice Deadline:
    	
 
    	
In respect of any exercise of Options hereunder on   any Conversion Date on or after the Free Convertibility Date, 5:00 P.M., New   York City time, on the Scheduled Trading Day immediately preceding the   Expiration Date.
    
	
 
    	
 
    	
 
    
	
Notice of   Exercise:
    	
 
    	
Counterparty shall notify Dealer in writing prior to   the Notice Deadline of the number of Relevant Convertible Securities being   converted on the related Conversion Date[; provided   that any “Notice of Exercise” delivered to Dealer pursuant to the Base Call   Option Transaction Confirmation shall be deemed to be a Notice of Exercise   pursuant to this Confirmation and the terms of such Notice of Exercise shall   apply, mutatis mutandis, to this   Confirmation](10). If Counterparty fails to give such notice when due in   respect of any exercise of Options hereunder with a Conversion Date occurring   on or after the Free Convertibility Date, Automatic Exercise shall apply and   the Conversion Date shall be deemed to be the Notice Deadline.
    
	
 
    	
 
    	
 
    
	
Notice of Final   Settlement Method:
    	
 
    	
In addition, Counterparty shall notify Dealer in   writing before 5:00 P.M., New York City time, on the Scheduled Trading Day   immediately preceding the Free Convertibility Date of the Relevant Settlement   Method with respect to each Option exercised hereunder relating to Relevant   Convertible Securities with a Conversion Date occurring on or after the Free   Convertibility Date, the settlement method for such Relevant Convertible   Securities and, if the settlement method for such Relevant Convertible   Securities is
    

 

(10)  Include for additional capped call confirmation only.

 

5

 

	
 
    	
 
    	
not Settlement in Shares or Settlement in Cash (each   as defined below), the fixed amount of cash per Relevant Convertible Security   (the “Specified Dollar Amount”) that   Counterparty has elected (or is deemed to have elected) to deliver to   holder(s) of such Relevant Convertible Securities (any such notice, a “Notice of Final Settlement Method”); provided that, if Counterparty does not   timely deliver the Notice of Final Settlement Method, then the Notice of   Final Settlement Method shall be deemed timely given and the Relevant   Settlement Method shall be Net Share Settlement (and, for the avoidance of   doubt, the Settlement Averaging Period shall be determined without regard to   the proviso in the definition thereof), and Counterparty shall not specify   Settlement in Shares or Low Cash Combination Settlement as the settlement   method for any Relevant Convertible Securities.  Counterparty acknowledges its   responsibilities under applicable securities laws, and in particular   Section 9 and Section 10(b) of the Exchange Act and the   rules and regulations thereunder, in respect of any settlement method   election (including any such deemed settlement method election as set forth   in the proviso in the immediately preceding sentence).
    
	
 
    	
 
    	
 
    
	
Valuation Time:
    	
 
    	
At the close of trading of the regular trading   session on the Exchange; provided that   if the principal trading session is extended, the Calculation Agent shall   determine the Valuation Time in its reasonable discretion.
    
	
 
    	
 
    	
 
    
	
Market   Disruption Event:
    	
 
    	
Section 6.3(a) of the Equity Definitions   is hereby replaced in its entirety by the following:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“‘Market Disruption Event’ means, in respect of a   Share, (i) a failure by the primary U.S. national or regional securities   exchange or market on which the Shares are listed or admitted for trading to   open for trading during its regular trading session or (ii) the   occurrence or existence prior to 1:00 p.m. (New York City time) on any   Scheduled Trading Day for the Shares for more than one half-hour period in   the aggregate during regular trading hours of any suspension or limitation   imposed on trading (by reason of movements in price exceeding limits   permitted by the relevant stock exchange or otherwise) in the Shares or in   any options contracts or futures contracts traded on any U.S. exchange   relating to the Shares.”
    
	
 
    	
 
    	
 
    
	
Dealer’s   Telephone Number

and Telex and/or   Facsimile Number

and Contact   Details for purpose of

Giving Notice:
    	
 
    	
 

 

 

As specified in   Section 6(b) below.
    

 

6

 

	
Settlement Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Settlement   Method:
    	
 
    	
For any Option, Net Share Settlement; provided that, if the Relevant Settlement Method set forth   below for such Option is not Net Share Settlement, then the Settlement Method   for such Option shall be such Relevant Settlement Method, but only if   Counterparty shall have notified Dealer of the Relevant Settlement Method in   the Notice of Final Settlement Method for such Option.
    
	
 
    	
 
    	
 
    
	
Relevant   Settlement Method:
    	
 
    	
In respect of any Option:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)      if   Counterparty has elected to settle its conversion obligations in respect of   the related Relevant Convertible Security (A) entirely in Shares   pursuant to Section 14.02(a)(iv)(A) of the Indenture (together with   cash in lieu of fractional Shares) (such settlement method, “Settlement in Shares”), (B) in a combination of cash   and Shares pursuant to Section 14.02(a)(iv)(C) of the Indenture   with a Specified Dollar Amount less than USD1,000 (such settlement method, “Low Cash Combination Settlement”) or (C) in a   combination of cash and Shares pursuant to   Section 14.02(a)(iv)(C) of the Indenture with a Specified Dollar   Amount equal to USD1,000, then, in each case, the Relevant Settlement Method   for such Option shall be Net Share Settlement;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)      if   Counterparty has elected to settle its conversion obligations in respect of   the related Relevant Convertible Security in a combination of cash and Shares   pursuant to Section 14.02(a)(iv)(C) of the Indenture with a   Specified Dollar Amount greater than USD1,000, then the Relevant Settlement   Method for such Option shall be Combination Settlement; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)      if   Counterparty has elected to settle its conversion obligations in respect of   the related Relevant Convertible Security entirely in cash pursuant to   Section 14.02(a)(iv)(B) of the Indenture (such settlement method, “Settlement in Cash”), then the Relevant Settlement Method   for such Option shall be Cash Settlement.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Net Share   Settlement:
    	
 
    	
If Net Share Settlement is applicable to any Option   exercised or deemed exercised hereunder, Dealer will deliver to Counterparty,   on the relevant Settlement Date for each such Option, a number of Shares (the   “Net Share Settlement Amount”) equal   to the sum, for each Trading Day during the Settlement Averaging Period for   each such Option, of (i) (a) the Daily Option Value for such   Trading Day, divided by (b) the   Relevant Price on such Trading Day, divided by   (ii) the number of Trading Days in the Settlement Averaging Period; provided that in no event shall the
    

 

7

 

	
 
    	
 
    	
Net Share Settlement Amount for any Option exceed a   number of Shares equal to the Applicable Limit for such Option divided by the Applicable Limit Price on the Settlement   Date for such Option.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dealer will pay cash in lieu of delivering any fractional   Shares to be delivered with respect to any Net Share Settlement Amount valued   at the Relevant Price for the last Trading Day of the Settlement Averaging   Period.
    
	
 
    	
 
    	
 
    
	
Combination   Settlement:
    	
 
    	
If Combination Settlement is applicable to any   Option exercised or deemed exercised hereunder, Dealer will pay or deliver,   as the case may be, to Counterparty, on the relevant Settlement Date for each   such Option:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
 
    	
cash (the “Combination Settlement   Cash Amount”) equal to the sum, for each Trading Day during the   Settlement Averaging Period for such Option, of (A) an amount (the “Daily Combination Settlement Cash Amount”) equal to the   lesser of (1) the product of (x) the Applicable Percentage and   (y) the Specified Dollar Amount minus   USD1,000 and (2) the Daily Option Value, divided by   (B) the number of Trading Days in the Settlement Averaging Period; provided that if the calculation in clause (A) above   results in zero or a negative number for any Trading Day, the Daily   Combination Settlement Cash Amount for such Trading Day shall be deemed to be   zero; and
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
 
    	
Shares (the “Combination Settlement   Share Amount”) equal to the sum, for each Trading Day during the   Settlement Averaging Period for such Option, of a number of Shares for such   Trading Day (the “Daily Combination   Settlement Share Amount”) equal to (A) (1) the Daily   Option Value on such Trading Day minus the   Daily Combination Settlement Cash Amount for such Trading Day, divided by (2) the Relevant Price on such Trading   Day, divided by (B) the number of   Trading Days in the Settlement Averaging Period; provided   that if the calculation in sub-clause (A)(1) above results in zero or a   negative number for any Trading Day, the Daily Combination Settlement Share   Amount for such Trading Day shall be deemed to be zero;
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
provided that in no event shall   the sum of (x) the Combination Settlement Cash Amount for any Option and   (y) the Combination Settlement Share Amount for such Option multiplied by the Applicable
    

 

8

 

	
 
    	
 
    	
Limit Price on the Settlement Date for such Option   exceed the Applicable Limit for such Option.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dealer will pay cash in lieu of delivering any   fractional Shares to be delivered with respect to any Combination Settlement   Share Amount valued at the Relevant Price for the last Trading Day of the   Settlement Averaging Period.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash Settlement:
    	
 
    	
If Cash Settlement is applicable to any Option   exercised or deemed exercised hereunder, in lieu of Section 8.1 of the   Equity Definitions, Dealer will pay to Counterparty, on the relevant   Settlement Date for each such Option, an amount of cash (the “Cash Settlement Amount”) equal to the sum, for each   Trading Day during the Settlement Averaging Period for such Option, of   (i) the Daily Option Value for such Trading Day, divided by   (ii) the number of Trading Days in the Settlement Averaging Period.
    
	
 
    	
 
    	
 
    
	
Daily Option   Value:
    	
 
    	
For any Trading Day, an amount equal to (i) the   Option Entitlement on such Trading Day, multiplied by   (ii) (A) the lesser of the Relevant Price on such Trading Day and   the Cap Price, less (B) the Strike Price   on such Trading Day; provided that   if the calculation contained in clause (ii) above results in a negative   number, the Daily Option Value for such Trading Day shall be deemed to be   zero. In no event will the Daily Option Value be less than zero.
    
	
 
    	
 
    	
 
    
	
Applicable   Limit:
    	
 
    	
For any Option, an amount of cash equal to the   Applicable Percentage multiplied by   the excess of (i) the aggregate of (A) the amount of cash, if any,   paid to the holder of the related Relevant Convertible Security upon   conversion of such Relevant Convertible Security and (B) the number of   Shares, if any, delivered to the holder of the related Relevant Convertible   Security upon conversion of such Relevant Convertible Security multiplied by the Applicable Limit Price on the   Settlement Date for such Option, over (ii) USD1,000.
    
	
 
    	
 
    	
 
    
	
Applicable Limit   Price:
    	
 
    	
On any day, the opening price as displayed under the   heading “Op” on Bloomberg page “PLUG <equity>“ (or any successor   thereto).
    
	
 
    	
 
    	
 
    
	
Trading Day:
    	
 
    	
A day on which (i) there is no Market   Disruption Event and (ii) trading in the Shares generally occurs on the   Exchange or, if the Shares are not then listed on the Exchange, on the   principal other U.S. national or regional securities exchange on which the   Shares are then listed or, if the Shares are not then listed on a U.S.   national or regional securities exchange, on the principal other market on   which the Shares are then listed or admitted for trading. If the Shares are   not so listed or admitted for trading, “Trading Day” means a Business Day.
    

 

9

 

	
Scheduled   Trading Day:
    	
 
    	
A day that is scheduled to be a Trading Day on the   principal U.S. national or regional securities exchange or market on which   the Shares are listed or admitted for trading. If the Shares are not so   listed or admitted for trading, “Scheduled Trading Day” means a Business Day.
    
	
 
    	
 
    	
 
    
	
Business Day:
    	
 
    	
Any day other than a Saturday, a Sunday or a day on   which the Federal Reserve Bank of New York is authorized or required by law   or executive order to close or be closed.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Relevant Price:
    	
 
    	
On any Trading Day, the per Share volume-weighted   average price as displayed under the heading “Bloomberg VWAP” on Bloomberg   page “PLUG <equity> AQR” (or its equivalent successor if such   page is not available) in respect of the period from the scheduled open   of trading to the scheduled close of trading of the primary trading session   on such Trading Day (or if such volume-weighted average price is unavailable,   the market value of one Share on such Trading Day, as determined by the   Calculation Agent using, if practicable, a volume-weighted average method).   The Relevant Price will be determined without regard to after-hours trading   or any other trading outside of the regular trading session trading hours.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Settlement Averaging   Period:
    	
 
    	
For any Option, the 40 consecutive Trading Days   commencing on, and including, the 41st Scheduled Trading Day immediately   prior to the Expiration Date; provided that   if the Notice of Final Settlement Method for such Option specifies that Settlement   in Shares or Low Cash Combination Settlement applies to the related Relevant   Convertible Security, the Settlement Averaging Period shall be the 80   consecutive Trading Days commencing on, and including, the 81st Scheduled   Trading Day immediately prior to the Expiration Date.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Settlement Date:
    	
 
    	
For any Option, the second Business Day immediately   following the final Trading Day of the Settlement Averaging Period for such   Option.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Settlement   Currency:
    	
 
    	
USD
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Other Applicable   Provisions:
    	
 
    	
The provisions of Sections 9.8, 9.9 and 9.11 of the   Equity Definitions will be applicable, except that all references in such   provisions to “Physically-settled” shall be read as references to “Share   Settled”. “Share Settled” in relation to any Option means that Net Share   Settlement or Combination Settlement is applicable to that Option.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Representation   and Agreement:
    	
 
    	
Notwithstanding anything to the contrary in the   Equity Definitions (including, but not limited to, Section 9.11   thereof), the parties acknowledge that (i)
    

 

10

 

	
 
    	
 
    	
any Shares delivered to Counterparty shall be, upon   delivery, subject to restrictions and limitations arising from Counterparty’s   status as issuer of the Shares under applicable securities laws,   (ii) Dealer may deliver any Shares required to be delivered hereunder in   certificated form in lieu of delivery through the Clearance System and   (iii) any Shares delivered to Counterparty may be “restricted securities”   (as defined in Rule 144 under the Securities Act of 1933, as amended   (the “Securities Act”)).
    
	
 
    	
 
    	
 
    
	
Adjustments:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Method of   Adjustment:
    	
 
    	
Notwithstanding Section 11.2 of the Equity   Definitions, upon the occurrence of any event or condition set forth in the   Dilution Adjustment Provisions (a “Potential Adjustment   Event”) that requires an adjustment under the Indenture, the   Calculation Agent shall, in good faith and in a commercially reasonable   manner, make a corresponding adjustment in respect of any one or more of the   Strike Price, the Number of Options, the Option Entitlement and any other   term relevant to the exercise, settlement or payment of the Transaction, to   the extent an analogous adjustment is required under the Indenture, subject to   “Discretionary Adjustments” below. Immediately upon the occurrence of any   Potential Adjustment Event, Counterparty shall notify the Calculation Agent   of such Potential Adjustment Event.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding anything to the contrary herein or   in the Equity Definitions:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(i) in connection with any Potential Adjustment   Event as a result of an event or condition set forth in   Section 14.04(b) of the Indenture or Section 14.04(c) of   the Indenture where, in either case, the period for determining “Y” (as such   term is used in Section 14.04(b) of the Indenture) or “SP0” (as such term is used in   Section 14.04(c) of the Indenture), as the case may be, begins   before Counterparty has publicly announced the event or condition giving rise   to such Potential Adjustment Event, then the Calculation Agent shall, in good   faith and in a commercially reasonable manner, have the right to adjust any   variable relevant to the exercise, settlement or payment for the Transaction   as appropriate to reflect the reasonable costs (including, but not limited   to, hedging mismatches and market losses) and commercially reasonable   out-of-pocket expenses incurred by Dealer in connection with its commercially   reasonable hedging activities as a result of such event or condition not having
    

 

11

 

	
 
    	
 
    	
 
    	
 
    	
been publicly announced prior to the beginning of   such period; and
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(ii) if any Potential Adjustment Event is   declared and (a) the event or condition giving rise to such Potential   Adjustment Event is subsequently amended, modified, cancelled or abandoned,   (b) the “Conversion Rate” (as defined in the Indenture) is otherwise not   adjusted at the time or in the manner contemplated by the relevant Dilution   Adjustment Provision based on such declaration or (c) the “Conversion   Rate” (as defined in the Indenture) is adjusted as a result of such Potential   Adjustment Event and subsequently re-adjusted (each of clauses (a),   (b) and (c), a “Potential Adjustment   Event Change”) then, in each case, the Calculation Agent shall, in   good faith and in a commercially reasonable manner, have the right to adjust   any variable relevant to the exercise, settlement or payment for the   Transaction as appropriate to reflect the reasonable costs (including, but   not limited to, hedging mismatches and market losses) and commercially   reasonable out-of-pocket expenses incurred by Dealer in connection with its   commercially reasonable hedging activities as a result of such Potential   Adjustment Event Change.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Upon the occurrence of any Potential Adjustment   Event Change, Counterparty shall immediately notify the Calculation Agent in   writing of the details of such Potential Adjustment Event Change.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
For the avoidance of doubt, Dealer shall not have   any payment or delivery obligation hereunder in respect of, and no adjustment   shall be made to the terms of the Transaction on account of, (x) any   distribution of cash, property or securities by Counterparty to the holders   of Convertible Securities (upon conversion or otherwise) or (y) any   other transaction in which holders of Convertible Securities are entitled to   participate, in each case, in lieu of an adjustment under the Indenture in   respect of a Potential Adjustment Event (including, without limitation, under   the fifth sentence of Section 14.04(c) of the Indenture or the   fourth sentence of Section 14.04(d) of the Indenture).
    
	
 
    	
 
    	
 
    
	
Dilution   Adjustment Provisions:
    	
 
    	
Sections 14.04(a), (b), (c), (d) and   (e) and Section 14.05 of the Indenture
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Discretionary   Adjustments:
    	
 
    	
Notwithstanding anything to the contrary herein or   in the Equity Definitions, if the Calculation Agent in good faith disagrees   with any adjustment under the Indenture that is the basis of any adjustment   hereunder and that involves an exercise of discretion
    

 

12

 

	
 
    	
 
    	
by Counterparty, its board of directors or a   committee of its board of directors (including, without limitation, pursuant   to Section 14.05 of the Indenture or pursuant to Section 14.07 of   the Indenture or any supplemental indenture entered into thereunder or in   connection with the determination of the fair value of any securities,   property, rights or other assets), then the Calculation Agent will determine   the corresponding adjustment to be made to any one or more of the Strike   Price, Number of Options, Option Entitlement and any other variable relevant   to the exercise, settlement or payment of or under the Transaction in good   faith and in a commercially reasonable manner consistent with the methodology   set forth in the Indenture. In addition, notwithstanding the foregoing, if   any Potential Adjustment Event occurs during the Settlement Averaging Period   but no adjustment was made to any Convertible Security under the Indenture   because the relevant holder of such Convertible Security was deemed to be a   record owner of the underlying Shares on the related Conversion Date, then   the Calculation Agent shall, in good faith and in a commercially reasonable   manner, make an adjustment, consistent with the methodology set forth in the   Indenture as determined by it, to the terms hereof in order to account for   such Potential Adjustment Event. For the avoidance of doubt, Dealer’s payment   and/or delivery obligation hereunder shall be calculated on the basis of such   adjustments by the Calculation Agent.
    
	
Extraordinary Events:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Merger Events:
    	
 
    	
Notwithstanding Section 12.1(b) of the   Equity Definitions, “Merger Event” shall have the meaning given to the term   “Share Exchange Event” in Section 14.07 of the Indenture.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Consequences of   Merger Events/
    	
 
    	
 
    	
 
    	
 
    
	
Tender Offers:
    	
 
    	
Notwithstanding Section 12.2 of the Equity   Definitions, upon the occurrence of a Merger Event, the Calculation Agent,   acting in good faith and commercially reasonably, shall make a corresponding   adjustment in respect of any adjustment under the Indenture to any one or   more of the nature of the Shares, the Number of Options, the Option   Entitlement, composition of the “Shares” hereunder and any other variable   relevant to the exercise, settlement or payment for the Transaction, to the   extent an analogous adjustment is required under Section 14.07 of the   Indenture in respect of such Merger Event, as determined in good faith and in   a commercially reasonable manner by the Calculation Agent by reference to   such Section, subject to “Discretionary Adjustments” above; provided that such adjustment shall be made without regard   to any
    

 

13

 

	
 
    	
 
    	
adjustment to the Conversion Rate pursuant to a   Make-Whole Adjustment or a Discretionary Conversion Rate Increase; provided further that in respect of any election by the   holders of Shares with respect to the consideration due upon consummation of   any Merger Event, the Calculation Agent shall have the right to adjust any   variable relevant to the exercise, settlement or payment for the Transaction   as appropriate to compensate Dealer for any losses (including, without   limitation, market losses customary for transactions similar to the   Transaction with counterparties similar to Counterparty) solely as a result   of any mismatch on its Hedge Position, assuming Dealer maintains a   commercially reasonable Hedge Position, and the type and amount of   consideration actually paid or issued to the holders of Shares in respect of   such Merger Event; and provided further   that if, with respect to a Merger Event or a Tender Offer, (i) the   consideration for the Shares includes (or, at the option of a holder of   Shares, may include) securities issued by an entity that is not a corporation   organized under the laws of the United States, any state thereof or the   District of Columbia or (ii) the Counterparty to the Transaction,   following such Merger Event, will not be a corporation organized under the   laws of the United States, any State thereof or the District of Columbia or   will not be the Issuer, Dealer may elect in its commercially reasonable   discretion that Cancellation and Payment (Calculation Agent Determination)   shall apply. For the avoidance of doubt, adjustments shall be made pursuant   to the provisions set forth above regardless of whether any Merger Event   gives rise to an Early Conversion. For purposes of this paragraph, “Tender   Offer” means the occurrence of any event or condition set forth in   Section 14.04(e) of the Indenture.
    
	
 
    	
 
    	
 
    
	
Notice of Merger   Consideration:
    	
 
    	
Upon the occurrence of a Merger Event, Counterparty   shall reasonably promptly (but in any event prior to consummation of such   Merger Event) notify the Calculation Agent of, in the case of a Merger Event   that causes the Shares to be converted into the right to receive more than a   single type of consideration (determined based in part upon any form of   stockholder election), the weighted average of the types and amounts of   consideration actually received by holders of Shares upon consummation of   such Merger Event.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Consequences of   Announcement Events:
    	
 
    	
Modified Calculation Agent Adjustment as set forth   in Section 12.3(d) of the Equity Definitions; provided   that, in respect of an Announcement Event, (x) references to “Tender   Offer” shall be replaced by references to “Announcement Event” and references   to “Tender Offer Date” shall be replaced by
    

 

14

 

	
 
    	
 
    	
references to “date of such Announcement Event”,   (y) the word “shall” in the second line shall be replaced with “may”,   the phrase “exercise, settlement, payment or any other terms of the   Transaction (including, without limitation, the spread)” shall be replaced   with the phrase “Cap Price (provided that   in no event shall the Cap Price be less than the Strike Price)” and the words   “whether within a commercially reasonable (as determined by the Calculation   Agent) period of time prior to or after the Announcement Event,” shall be   inserted prior to the word “which” in the seventh line, and (z) for the   avoidance of doubt, the Calculation Agent may, in good faith and in a   commercially reasonable manner, determine whether the relevant Announcement   Event has had an economic effect on the Transaction (and, if so, may adjust   the Cap Price accordingly) on one or more occasions on or after the date of   the Announcement Event up to, and including, the Expiration Date, any Early   Termination Date and/or any other date of cancellation, it being understood   that any adjustment in respect of an Announcement Event shall take into   account any earlier adjustment relating to the same Announcement Event. An   Announcement Event shall be an “Extraordinary Event” for purposes of the   Equity Definitions, to which Article 12 of the Equity Definitions is   applicable.
    
	
 
    	
 
    	
 
    
	
Announcement   Event:
    	
 
    	
(i)  The public announcement by Issuer,   any subsidiary of Issuer, any affiliate of Issuer, any agent of Issuer or a   relevant and credible third party of (x) any transaction or event that,   if completed, would constitute a Merger Event or Tender Offer, (y) any   potential acquisition by Issuer and/or its subsidiaries where the aggregate   consideration exceeds 25% of the market capitalization of Issuer as of the   date of such announcement (a “Transformative   Transaction”) or (z) the intention to enter into a Merger   Event or Tender Offer or a Transformative Transaction, (ii) the public   announcement by Issuer of an intention to solicit or enter into, or to   explore strategic alternatives or other similar undertaking that may include,   a Merger Event or Tender Offer or a Transformative Transaction or   (iii) any subsequent public announcement by Issuer, any subsidiary of   Issuer, any affiliate of Issuer, any agent of Issuer or a relevant and   credible third party of a change to a transaction or intention that is the   subject of an announcement of the type described in clause (i) or   (ii) of this sentence (including, without limitation, a new announcement,   whether or not by the same party, relating to such a transaction or intention   or the announcement of a withdrawal from, or the abandonment or   discontinuation of, such a transaction or intention), as determined by the
    

 

15

 

	
 
    	
 
    	
Calculation Agent. The parties hereto agree and   acknowledge that, for purposes of this “Announcement Event” definition, in   determining whether a third party is relevant and credible, the Calculation   Agent may take into consideration the effect of the relevant announcement by   such third party on the Shares and/or options relating to the Shares (and,   for the avoidance of doubt, if the Calculation Agent determines the effect   thereof on the Shares and/or options relating to the Shares is material, such   third party shall be deemed to be relevant and credible). For the avoidance   of doubt, the occurrence of an Announcement Event with respect to any   transaction or intention shall not preclude the occurrence of a later Announcement   Event with respect to such transaction or intention. For purposes of this   definition of “Announcement Event,” (A) “Merger Event” shall mean such   term as defined under Section 12.1(b) of the Equity Definitions   (but, for the avoidance of doubt, the remainder of the definition of “Merger   Event” in Section 12.1(b) of the Equity Definitions following the   definition of “Reverse Merger” therein shall be disregarded) and   (B) “Tender Offer” shall mean such term as defined under Section 12.1(d) of   the Equity Definitions.
    
	
 
    	
 
    	
 
    
	
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 Shares are not immediately   re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The   NASDAQ Global Select Market, The NASDAQ Global Market or The NASDAQ Capital   Market (or their respective successors); if the Shares are immediately   re-listed, re-traded or re-quoted on any such exchange or quotation system,   such exchange or quotation system shall thereafter be deemed to be the   Exchange.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Additional   Termination Event(s):
    	
 
    	
Notwithstanding anything to the contrary in the   Equity Definitions, if, as a result of an Extraordinary Event, the   Transaction would be cancelled or terminated (whether in whole or in part)   pursuant to Article 12 of the Equity Definitions, an Additional   Termination Event (with the Transaction (or the cancelled or terminated   portion thereof) being the Affected Transaction and Counterparty being the   sole Affected Party) shall be deemed to occur, and, in lieu of Sections 12.7,   12.8 and 12.9 of the Equity Definitions, Section 6 of the Agreement   shall apply to such Affected Transaction.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Additional   Disruption Events:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
(a)  Change   in Law:
    	
 
    	
Applicable; provided that   Section 12.9(a)(ii) of the
    

 

16

 

	
 
    	
 
    	
Equity Definitions is hereby amended by   (i) replacing the phrase “the interpretation” in the third line thereof   with the phrase “, or public announcement of, the formal or informal   interpretation”, (ii) adding the phrase “and/or Hedge Position” after   the word “Shares” in clause (X) thereof and (iii) immediately   following the word “Transaction” in clause (X) thereof, adding the   phrase “in the manner contemplated by the Hedging Party on the Trade Date”;   and provided further that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended by   (i) replacing the parenthetical beginning after the word “regulation” in   the second line thereof with the words “(including, for the avoidance of   doubt and without limitation, (x) any tax law or (y) adoption or   promulgation of new regulations authorized or mandated by existing statute)”   and (ii) adding the words “, or holding, acquiring or disposing of   Shares or any Hedge Positions relating to,” after the words “obligations   under” in clause (Y) thereof.
    
	
 
    	
 
    	
 
    
	
(b)  Failure   to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
(c)  Insolvency   Filing:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
(d)  Hedging   Disruption:
    	
 
    	
Applicable; provided   that:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)  Section 12.9(a)(v) of the   Equity Definitions is hereby amended by inserting the following sentence at   the end of such Section:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
“For the avoidance of doubt, (i) the term   “equity price risk” shall be deemed to include, but shall not be limited to,   stock price and volatility risk, and (ii) the transactions or assets   referred to in phrases (A) or (B) above must be available on   commercially reasonable pricing and other 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”.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
(e)  Increased   Cost of Hedging:
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
 
    
	
Hedging Party:
    	
 
    	
Dealer or an affiliate of Dealer that is involved in   the hedging of the Transaction for all applicable Additional Disruption   Events
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Determining   Party:
    	
 
    	
Dealer; provided that   the Determining Party will promptly, upon written notice from Counterparty,   provide a statement displaying in reasonable detail the basis for such   determination, adjustment or calculation, as the case may be (including any   quotations, market data or information from internal or external sources used   in making such determination, adjustment or calculation, it being understood   that the Determining Party shall not be required to disclose any confidential   information or proprietary models used by it in connection with such   determination, adjustment or calculation, as the case
    

 

17

 

	
 
    	
 
    	
may be).
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements and   Acknowledgments
    	
 
    	
 
    
	
Regarding   Hedging Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional   Acknowledgments:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Adjustment:
    	
 
    	
For the avoidance of doubt, whenever Dealer,   Determining Party or the Calculation Agent is permitted to make an adjustment   pursuant to the terms of this Confirmation or the Equity Definitions to take   into account the effect of any event (other than an adjustment made by   reference to the Indenture), the Calculation Agent, Determining Party or   Dealer, as the case may be, shall make such adjustment by reference to the   effect of such event on Dealer assuming that Dealer maintains a commercially   reasonable hedge position.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.   Calculation   Agent:
    	
 
    	
Dealer; provided that   all calculations and determinations by the Calculation Agent (other than   calculations or determinations made by reference to the Indenture) shall be   made in good faith and in a commercially reasonable manner and assuming for   such purposes that Dealer is maintaining, establishing and/or unwinding, as   applicable, a commercially reasonable hedge position; provided   further that if 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 occurs, Counterparty shall have the right to   appoint a successor calculation agent which shall be a nationally recognized   third-party dealer in over-the-counter corporate equity derivatives.   Calculation Agent agrees that it will promptly, upon written notice from   Counterparty, provide a statement displaying in reasonable detail the basis   for such determination, adjustment or calculation, as the case may be   (including any quotations, market data or information from internal or   external sources used in making such determination, adjustment or   calculation, it being understood that the Calculation Agent shall not be   required to disclose any confidential information or proprietary models used   by it in connection with such determination, adjustment or calculation, as   the case may be).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

4.         Account Details:

 

Dealer Payment Instructions:

 

	
Bank:
    	
 
    	
[           ]
    
	
SWIFT:
    	
 
    	
[           ]
    
	
Bank Routing:
    	
 
    	
[           ]
    
	
Acct Name:
    	
 
    	
[           ]
    
	
Acct No.:
    	
 
    	
[           ]
    

 

Counterparty Payment Instructions:

 

18

 

	
To be provided by Counterparty.
    	
 
    	
 
    

 

5.         Offices:

 

The Office of Dealer for the Transaction is: [                ]

 

The Office of Counterparty for the Transaction is:

 

Inapplicable, Counterparty is not a Multibranch Party

 

6.         Notices: For purposes of this Confirmation:

 

(a)                       Address for notices or communications to Counterparty:

 

	
To:
    	
 
    	
Plug Power Inc.
    
	
 
    	
 
    	
968 Albany Shaker Road
    
	
 
    	
 
    	
Latham, NY 12110
    
	
Attn:
    	
 
    	
Gerard L. Conway Jr.
    
	
Telephone:
    	
 
    	
(518) 738-0970
    
	
Email:
    	
 
    	
gconway@plugpower.com
    
	
 
    	
 
    	
 
    
	
with a copy to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Goodwin Procter   LLP
    
	
The New York   Times Building
    
	
620 Eighth   Avenue
    
	
New York, NY   10018
    
	
Attn:
    	
 
    	
Yoel Kranz
    
	
Telephone:
    	
 
    	
(212) 813-8800
    
	
Email:
    	
 
    	
ykranz@goodwinlaw.com
    

 

(b)                       Address for notices or communications to Dealer:

 

	
To:
    	
 
    	
[               ]
    
	
Attn:
    	
 
    	
[               ]
    
	
Telephone:
    	
 
    	
[               ]
    
	
Facsimile:
    	
 
    	
[               ]
    
	
Email:
    	
 
    	
[               ]
    
	
 
    	
 
    	
 
    
	
With a copy to:
    	
 
    	
[               ]
    
	
Attn:
    	
 
    	
[               ]
    
	
Telephone:
    	
 
    	
[               ]
    
	
Facsimile:
    	
 
    	
[               ]
    
	
Email:
    	
 
    	
[               ]
    

 

7.         Representations, Warranties and Agreements:

 

(a)                                         In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with, Dealer as follows:

 

(i)                                     On the Trade Date and as of the date of any Notice of Share Termination under (and as defined in) Section 8(c) below, (A) Counterparty is not aware of any material nonpublic information regarding Counterparty or the Shares and (B) all reports and other documents filed by Counterparty with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.

 

19

 

(ii)                                  (A) On the Trade Date, the Shares or securities that are convertible into, or exchangeable or exercisable for Shares, are not subject to a “restricted period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”) and (B) Counterparty shall not engage in any “distribution,” as such term is defined in Regulation M, other than a distribution meeting the requirements of the exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day immediately following the Trade Date.

 

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

 

(iv)                              Without limiting the generality of Section 3(a)(iii) of the Agreement, the Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

 

(v)                                 Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board of directors authorizing the Transaction.

 

(vi)                              Counterparty is not entering into this Confirmation to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

 

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

 

(viii)                        On each of the Trade Date and the Premium Payment Date, Counterparty is not “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase the Number of Shares in compliance with the laws of the jurisdiction of Counterparty’s incorporation.

 

(ix)                              The representations and warranties of Counterparty set forth in Section 3 of the Agreement and Section 1 of the Purchase Agreement, dated as of March [  ], 2018, between Counterparty and [                ], as representatives of the Initial Purchasers party thereto (the “Purchase Agreement”), are true and correct as of the Trade Date and the Effective Date and are hereby deemed to be repeated to Dealer as if set forth herein.

 

(x)                                 To the knowledge of Counterparty, no state or local (including non-U.S. jurisdictions) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares; provided that Counterparty makes no representation or warranty regarding any such requirement that is applicable generally to the ownership of equity securities by Dealer or any of its affiliates solely as a result of it or any of such affiliates being financial institutions or broker-dealers.

 

(xi)                              Counterparty (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 USD50 million.

 

(b)                              Each of Dealer and Counterparty agrees and represents that it is an “eligible contract participant” as defined in Section 1a(18) of the U.S. Commodity Exchange Act, as amended, and is entering into the Transaction as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not for the benefit of any third party.

 

20

 

(c)                                  Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof.  Accordingly, Counterparty represents and warrants to Dealer 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.

 

(d)                                 Each of Dealer and Counterparty agrees and acknowledges that Dealer is a “financial institution” and “financial participant” within the meaning of Sections 101(22) and 101(22A) of the Bankruptcy Code.  The parties hereto further agree and acknowledge (A) that this Confirmation is a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 548(d)(2), 555 and 561 of the Bankruptcy Code.

 

(e)                                  As a condition to the effectiveness of the Transaction, Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Premium Payment Date and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement and Section 7(a)(vii) hereof; provided that any such opinion of counsel may contain customary exceptions and qualifications, including, without limitation, exceptions and qualifications relating to indemnification provisions.

 

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

 

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

 

(h)                                 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, in each case, to the extent such rules are applicable to such party.

 

8.              Other Provisions:

 

(a)                                 Right to Extend.  Dealer may postpone or add, in whole or in part, any Trading Day or Trading Days during the Settlement Averaging Period or any other date of valuation, payment or delivery by Dealer, with respect to some or all of the relevant Options (in which event the Calculation Agent, in good faith and in a commercially reasonable manner, shall make appropriate adjustments to Dealer’s payment and/or delivery obligation hereunder), if Dealer determines, in good faith and in a commercially reasonable manner, and, in respect of clause (ii) below, based on the advice of counsel, that such extension is reasonably necessary or appropriate (i) to preserve Dealer’s commercially reasonable hedging or hedge

 

21

 

unwind activity hereunder in light of existing liquidity conditions in the cash market, the stock borrow market or other relevant market (but only if there is a material decrease in liquidity relative to Dealer’s expectations on the Trade Date), or (ii) to enable Dealer to effect purchases or sales of Shares or Share Termination Delivery Units in connection with its commercially reasonable hedging, hedge unwind or settlement activity hereunder in a manner that would (assuming, in the case of purchases, Dealer were Counterparty or an affiliated purchaser of Counterparty) be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer and, in the case of policies or procedures, so long as such policies or procedures are consistently applied to transactions similar to the Transaction); provided that no such Trading Day or other date of valuation, payment or delivery may be postponed or added more than 40 Trading Days after the original Trading Day or other date of valuation, payment or delivery, as the case may be.

 

(b)                              Additional Termination Events.

 

(i)                                     The occurrence of an event of default with respect to Counterparty under the terms of the Convertible Securities as set forth in Section 6.01 of the Indenture, which default has resulted in the Convertible Securities becoming due and payable under the terms thereof, shall constitute an Additional Termination Event with respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole Affected Party, and Dealer shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement and to determine the amount payable pursuant to Section 6(e) of the Agreement.

 

(ii)                                  As promptly as practicable (but in any event within five Scheduled Trading Days) following any Repurchase Event (as defined below), Counterparty shall notify Dealer in writing of such Repurchase Event and the number of Convertible Securities subject to such Repurchase Event (any such notice, a “Convertible Securities Repurchase Notice”)[; provided that any “Convertible Securities Repurchase Notice” delivered to Dealer pursuant to the Base Call Option Transaction Confirmation shall be deemed to be a Convertible Securities Repurchase Notice pursuant to this Confirmation and the terms of such Convertible Securities Repurchase Notice shall apply, mutatis mutandis, to this Confirmation](11). Notwithstanding anything to the contrary in this Confirmation, the receipt by Dealer from Counterparty of (x) any Convertible Securities Repurchase Notice, within the applicable time period set forth in the preceding sentence, and (y) a written representation and warranty by Counterparty that, as of the date of such Convertible Securities Repurchase Notice, Counterparty is not in possession of any material nonpublic information regarding Counterparty or the Shares, shall constitute an Additional Termination Event as provided in this Section 8(b)(ii). Upon receipt of any such Convertible Securities Repurchase Notice and the related written representation and warranty, Dealer shall promptly designate an Exchange Business Day following receipt of such Convertible Securities Repurchase Notice (which in no event shall be earlier than the related repurchase date for such Convertible Securities) as an Early Termination Date with respect to the portion of this Transaction corresponding to a number of Options (the “Repurchase Options”) equal to the lesser of (A) the number of such Convertible Securities specified in such Convertible Securities Repurchase Notice [minus the number of “Repurchase Options” (as defined in the Base Call Option Transaction Confirmation), if any, that relate to such Convertible Securities (and for purposes of determining whether any Options under this Confirmation or under the Base Call Option Transaction Confirmation will be among the Repurchase Options hereunder or under, and as defined in, the Base Call Option Transaction Confirmation, the Convertible Securities specified in such Convertible Securities Repurchase Notice shall be allocated first to the Base Call Option Transaction Confirmation until all Options thereunder are exercised or terminated)](12) and (B) the Number of Options as of the date Dealer designates such Early Termination Date and, as of such date, the Number of Options shall be reduced by the number of Repurchase Options. Any payment hereunder with respect to such termination shall be calculated pursuant to Section 6 of the

 

(11)  Include for additional capped call.

(12)  Include for additional capped call.

 

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Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction having terms identical to this Transaction and a Number of Options equal to the number of Repurchase Options, (2) Counterparty were the sole Affected Party with respect to such Additional Termination Event and (3) the terminated portion of the Transaction were the sole Affected Transaction.  “Repurchase Event” means that (i) any Convertible Securities are repurchased (whether pursuant to Section 15.02 of the Indenture or otherwise) by Counterparty or any of its subsidiaries (including in connection with, or as a result of, a “Fundamental Change” (as defined in the Indenture), a tender offer, exchange offer or similar transaction or for any other reason), (ii) any Convertible Securities are delivered to Counterparty in exchange for delivery of any property or assets of Counterparty or any of its subsidiaries (howsoever described), (iii) any principal of any of the Convertible Securities is repaid prior to the final maturity date of the Convertible Securities, or (iv) any Convertible Securities are exchanged by or for the benefit of the “Holders” (as such term is defined in the Indenture) thereof for any other securities of Counterparty or any of its affiliates (or any other property, or any combination thereof) pursuant to any exchange offer or similar transaction.  For the avoidance of doubt, any conversion of Convertible Securities (whether into cash, Shares, “Reference Property” (as defined in the Indenture) or any combination thereof) pursuant to the terms of the Indenture shall not constitute a Repurchase Event.

 

(iii)                               Notwithstanding anything to the contrary in this Confirmation, upon any Early Conversion in respect of which the relevant converting Holder has satisfied the requirements to conversion set forth in Section 14.02(b) of the Indenture:

 

(A)       Counterparty shall, as promptly as practicable (but in any event within five Scheduled Trading Days of the “Conversion Date” (as defined in the Indenture) for such Early Conversion), provide written notice (an “Early Conversion Notice”) to Dealer specifying the number of Convertible Securities surrendered for conversion on such Conversion Date (such Convertible Securities, the “Affected Convertible Securities”), and the giving of such Early Conversion Notice shall constitute an Additional Termination Event as provided in this Section 8(b)(iii); provided that any such Early Conversion Notice shall contain a written acknowledgement by Counterparty of its responsibilities under applicable securities laws, and in particular Section 9 and Section 10(b) of the Exchange Act and the rules and regulations thereunder, in respect of the delivery of such Early Conversion Notice;

 

(B)       upon receipt of any such Early Conversion Notice, within a commercially reasonable period of time thereafter, Dealer shall designate an Exchange Business Day as an Early Termination Date (which Exchange Business Day shall be no earlier than one Scheduled Trading Day following the “Conversion Date” (as defined in the Indenture) for such Early Conversion) with respect to the portion of the Transaction corresponding to a number of Options (the “Affected Number of Options”) equal to the lesser of (x) the number of Affected Convertible Securities [minus the “Affected Number of Options” (as defined in the Base Call Option Transaction Confirmation), if any, that relate to such Affected Convertible Securities](13) and (y) the Number of Options as of the “Conversion Date” (as defined in the Indenture) for such Early Conversion;

 

(C)       any payment hereunder with respect to such termination shall be calculated pursuant to Section 6 of the Agreement as if (x) an Early Termination Date had been designated in respect of a Transaction having terms identical to

 

(13)  Include for additional capped call.

 

23

 

the Transaction and a Number of Options equal to the Affected Number of Options, (y) Counterparty were the sole Affected Party with respect to such Additional Termination Event and (z) the terminated portion of the Transaction were the sole Affected Transaction; provided that the amount payable with respect to such termination shall not be greater than (1) the Applicable Percentage, multiplied by (2) the Affected Number of Options, multiplied by (3) (x) the sum of (i) the amount of cash paid (if any) and (ii) the number of Shares delivered (if any) to the Holder (as such term is defined in the Indenture) of an Affected Convertible Security upon conversion of such Affected Convertible Security (in each case, including any cash and/or Shares payable and/or deliverable as the result of a Make-Whole Adjustment (if any)), multiplied by the fair market value of one Share as determined by the Calculation Agent in good faith and in a commercially reasonable manner, minus (y) USD1,000;

 

(D)       for the avoidance of doubt, in determining the amount payable in respect of such Affected Transaction pursuant to Section 6 of the Agreement, the Calculation Agent shall assume that (x) the relevant Early Conversion and any conversions, adjustments, agreements, payments, deliveries or acquisitions by or on behalf of Counterparty leading thereto had not occurred, (y) no adjustment to the conversion rate for the Convertible Securities has occurred pursuant to any Make-Whole Adjustment or Discretionary Conversion Rate Increase and (z) the corresponding Convertible Securities remain outstanding; and

 

(E)        the Transaction shall remain in full force and effect, except that, as of the “Conversion Date” (as defined in the Indenture) for such Early Conversion, the Number of Options shall be reduced by the Affected Number of Options.

 

(c)                                  Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.  If Dealer shall owe Counterparty any amount pursuant to Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Counterparty shall have the right, in its sole discretion, to require Dealer to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day (which written confirmation shall contain the representation and warranty set forth in Section 7(a)(i)), no later than 9:30 A.M., New York City time, on the relevant Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable (“Notice of Share Termination”); provided that if Counterparty does not elect to require Dealer to satisfy its Payment Obligation by the Share Termination Alternative, Dealer shall have the right, in its sole discretion, to elect to satisfy its Payment Obligation by the Share Termination Alternative, notwithstanding Counterparty’s failure to elect or election to the contrary; and provided further that Counterparty shall not have the right to so elect (but, for the avoidance of doubt, Dealer shall have the right to so elect) in the event of (i) an Insolvency, a Nationalization or a Merger Event, in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash or (ii) an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party or an Extraordinary Event, which Event of Default, Termination Event or Extraordinary Event resulted from an event or events within Counterparty’s control.  Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the relevant merger date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable:

 

	
Share Termination Alternative:
    	
 
    	
If applicable, means that Dealer shall deliver to Counterparty   the Share Termination Delivery Property on the date on which the Payment   Obligation would otherwise be due pursuant to Section 6(d)(ii) of   the Agreement or such later date or dates as Dealer may commercially   reasonably determine (the “Share
    

 

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Termination Payment Date”)   taking into account commercially reasonable hedging or hedge unwind activity,   in satisfaction of the Payment Obligation.
    
	
 
    	
 
    	
 
    
	
Share Termination Delivery Property:
    	
 
    	
A number of Share Termination Delivery Units, as   calculated by the Calculation Agent in good faith and in a commercially   reasonable manner, equal to the Payment Obligation divided by the Share   Termination Unit Price. The Calculation Agent shall, in good faith and in a   commercially reasonable manner, adjust the Share Termination Delivery   Property by replacing any fractional portion of the aggregate amount 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.
    
	
 
    	
 
    	
 
    
	
Share Termination Unit Price:
    	
 
    	
The value 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 a commercially reasonable manner and notified by the   Calculation Agent to Dealer at the time of notification of the Payment   Obligation.
    
	
 
    	
 
    	
 
    
	
Share Termination Delivery Unit:
    	
 
    	
In the case of a Termination Event (other than on   account of an Insolvency, Nationalization or Merger Event), Event of Default,   Delisting or Additional Disruption Event, one Share or, in the case of an   Insolvency, Nationalization or Merger Event, one Share or a unit consisting   of the number or amount of each type of property received by a holder of one   Share (without consideration of any requirement to pay cash or other   consideration in lieu of fractional amounts of any securities) in such   Insolvency, Nationalization or Merger Event, as applicable. If such   Insolvency, Nationalization or Merger Event involves a choice of   consideration to be received by holders, such holder shall be deemed to have   elected to receive the maximum possible amount of cash.
    
	
 
    	
 
    	
 
    
	
Failure to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Other Applicable Provisions:
    	
 
    	
If Share Termination Alternative is applicable, the   provisions of Sections 9.8, 9.9 and 9.11 of the Equity Definitions will be   applicable as if “Physical Settlement” applied to the Transaction, except   that all references to “Shares” shall be read as references to “Share   Termination Delivery Units”; provided that   the Representation and Agreement contained in Section 9.11 of the Equity   Definitions shall be modified by excluding any representations therein   relating to restrictions, obligations, limitations or requirements under   applicable securities laws as a result of the fact that Counterparty is the   issuer of any Share Termination Delivery Units (or any part thereof).
    

 

(d)                                 Disposition of Hedge Shares.  Counterparty hereby agrees that if, in the good faith reasonable judgment of Dealer, based on the advice of counsel, the Shares (the “Hedge Shares”) acquired by Dealer for the purpose of hedging its obligations pursuant to the Transaction in a commercially reasonable manner cannot be sold in the U.S. public market by Dealer without registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Dealer to sell the Hedge Shares in a

 

25

 

registered offering, make available to Dealer an effective registration statement under the Securities Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in form and substance reasonably satisfactory to Dealer, substantially in the form of an underwriting agreement for a registered offering, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities (in all cases of (A)-(E) above, as would be usual and customary for offerings for companies of similar size and industry); provided that if Counterparty elects clause (i) above but the items referred to therein are not completed in a timely manner, or if Dealer, in its commercially reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this Section 8(d) shall apply at the election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities of similar size and industry, in form and substance commercially reasonably satisfactory to Dealer, including using best efforts to 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 Hedge Shares from Dealer), and best efforts obligations to provide opinions and certificates and such other documentation as is customary for private placements agreements for transactions of similar size and type, as is commercially reasonably acceptable to Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in its good faith, commercially reasonable judgment, to compensate Dealer for any commercially reasonable discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the then-current market price on such Exchange Business Days, and in the amounts and at such time(s), commercially reasonably requested by Dealer.  This Section 8(d) shall survive the termination, expiration or early unwind of the Transaction.

 

(e)                                  Repurchase and Conversion Rate Adjustment Notices.  Counterparty shall, at least two Exchange Business Days prior to any day on which Counterparty effects any repurchase of Shares or consummates or otherwise engages in any transaction or event (a “Conversion Rate Adjustment Event”) that could reasonably be expected to lead to an increase in the “Conversion Rate” (as defined in the Indenture), give Dealer a written notice of such repurchase or Conversion Rate Adjustment Event (a “Repurchase Notice”) on such day if, following such repurchase or Conversion Rate Adjustment Event, the Notice Percentage would reasonably be expected to be (i) greater than [     ] % and (ii) greater by 0.5% than the Notice Percentage included in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof).  The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of which is the Number of Shares plus the number of Shares underlying any other convertible bond hedge transactions or other derivative transactions sold by Dealer to Counterparty as to which Counterparty has a long position with respect to the Shares and the denominator of which is the number of Shares outstanding on such day.  In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the day and in the manner specified in this Section 8(e) then Counterparty agrees to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any and all losses (including losses relating to the 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 this Transaction), claims, damages and liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party may become subject under applicable securities laws, including without limitation, Section 16 of the Exchange Act or under any state or federal law, regulation or regulatory order, relating to or arising out of such failure.  If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Counterparty will reimburse any Indemnified Party for all

 

26

 

reasonable out-of-pocket expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with the investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Counterparty.  This indemnity shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement and shall inure to the benefit of any permitted assignee of Dealer.

 

(f)                                   Transfer and Assignment.  Either party may transfer or assign any of its rights or obligations under the Transaction with the prior written consent of the non-transferring party, such consent not to be unreasonably withheld or delayed; provided that Dealer may transfer or assign without any consent of Counterparty its rights and obligations hereunder, in whole or in part, to any person, or any person whose obligations would be guaranteed by a person, in either case, with a rating (i) for its long-term, unsecured and unsubordinated indebtedness at least equivalent to Dealer’s (or its ultimate parent’s) or (ii) that is no lower than A3 from Moody’s Investor Service, Inc. (or its successor) or A- from Standard and Poor’s Rating Group, Inc. (or its successor); provided further that, at the time of such transfer or assignment either (i) both the Dealer and transferee in any such transfer or assignment are a “dealer in securities” within the meaning of Section 475(c)(1) of the Code or (ii) the transfer or assignment does not result in a deemed exchange by Counterparty within the meaning of Section 1001 of the Code.  If at any time at which (1) the Equity Percentage exceeds 8.0% or (2) Dealer, Dealer Group (as defined below) or any person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under Section 203 of the Delaware General Corporation Law or other federal, state or local law, rule, regulation or regulatory order or organizational documents or contracts of Counterparty 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 in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting, registration, filing or notification obligations or other requirements (including obtaining prior approval by a state or federal regulator, but excluding reporting obligations arising under Section 13 of the Exchange Act) of a Dealer Person under Applicable Restrictions and with respect to which such requirements have not been met or the relevant approval has not been received, or that would have any other adverse effect on a Dealer Person, under Applicable Restrictions minus (y) 1% of the number of Shares outstanding on the date of determination (either such condition described in clause (1) or (2), an “Excess Ownership Position”), Dealer, in its discretion, is unable to effect a transfer or assignment to a third party after its commercially reasonable efforts on pricing and terms and within a time period reasonably acceptable to Dealer such that an Excess Ownership Position no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that an Excess Ownership Position would no longer exist following the resulting partial termination of the Transaction (after taking into account commercially reasonable adjustments to Dealer’s commercially reasonable Hedge Positions from such partial termination).  In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement or Section 8(c) of this Confirmation as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty were the sole Affected Party with respect to such partial termination, (iii) such portion of the Transaction were the only Terminated Transaction and (iv) Dealer were the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement and to determine the amount payable pursuant to Section 6(e) of the Agreement. The “Equity 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.  In the case of a transfer or assignment by Counterparty of its rights and obligations hereunder and under the

 

27

 

Agreement, in whole or in part (any such Options so transferred or assigned, the “Transfer Options”), to any party, withholding of such consent by Dealer shall not be considered unreasonable if such transfer or assignment does not meet the reasonable conditions that Dealer may impose including, but not limited, to the following conditions:

 

(A)                          With respect to any Transfer Options, Counterparty shall not be released from its notice and indemnification obligations pursuant to Section 8(e) or any obligations under Section 2 (regarding Extraordinary Events) or 8(d) of this Confirmation;

 

(B)                          Any Transfer Options shall only be transferred or assigned to a third party that is a United States person (as defined in the Internal Revenue Code of 1986, as amended (the “Code”));

 

(C)                          Such transfer or assignment shall be effected on terms, including any reasonable undertakings by such third party (including, but not limited to, undertakings with respect to compliance with applicable securities laws in a manner that, in the reasonable judgment of Dealer, will not expose Dealer to material risks under applicable securities laws) and execution of any documentation and delivery of legal opinions with respect to securities laws and other matters by such third party and Counterparty as are requested by, and reasonably satisfactory to, Dealer;

 

(D)                          Dealer shall not, as a result of such transfer and assignment, be required to pay the transferee on any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount that Dealer would have been required to pay to Counterparty in the absence of such transfer and assignment;

 

(E)                           An Event of Default, Potential Event of Default or Termination Event shall not occur as a result of such transfer and assignment;

 

(F)                            Without limiting the generality of clause (B), Counterparty shall have caused the transferee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested by Dealer to permit Dealer to determine that results described in clauses (D) and (E) will not occur upon or after such transfer and assignment; and

 

(G)                          Counterparty shall be responsible for all reasonable costs and expenses, including reasonable counsel fees, incurred by Dealer in connection with such transfer or assignment.

 

(g)                                  Delivery of Shares.  Notwithstanding anything to the contrary herein, Dealer may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date.

 

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

 

(i)                                     No Netting and Set-off.  The provisions of Section 2(c) of the Agreement shall not apply to the Transaction.  Each party waives any and all rights it may have to set-off delivery or payment obligations it owes to the other party under the Transaction against any delivery or payment obligations owed to it by the other party, whether arising under the Agreement, under any other agreement between parties hereto, by operation of law or otherwise.

 

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(j)                                    Equity Rights.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders in the event of Counterparty’s bankruptcy.  For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during Counterparty’s bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations under this Confirmation or the Agreement.  For the avoidance of doubt, the parties acknowledge that the obligations of Counterparty under this Confirmation are not secured by any collateral that would otherwise secure the obligations of Counterparty herein under or pursuant to any other agreement.

 

(k)                                 Early Unwind.  In the event the sale by Counterparty of the [Base Convertible Securities](14)[Optional Convertible Securities](15) is not consummated pursuant to the Purchase Agreement for any reason by the close of business in New York on [                 ], 2018(16) (or such later date as agreed upon by the parties) ([              ], 2018 or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and the Transaction and all of the respective rights and obligations of Dealer and Counterparty hereunder shall be cancelled and terminated.  Following such termination and cancellation, 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 either party arising out of, and to be performed in connection with, the Transaction either prior to or after the Early Unwind Date.  Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.

 

(l)                                     Agreements and Acknowledgements Regarding Hedging. Counterparty understands, acknowledges and agrees that: (A) at any time on and prior to the 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 “Daily VWAP” (as defined in the Indenture); (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 “Daily VWAP” (as defined in the Indenture), each in a manner that may be adverse to Counterparty; and (E) the Transaction is a derivatives transaction in which it has granted Dealer an option, and Dealer may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of the Transaction.

 

(m)                             Wall Street Transparency and Accountability Act.  In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (the “WSTAA”), the parties hereby agree that neither the enactment of the WSTAA (or any statute containing any legal certainty provision similar to Section 739 of the WSTAA) or any regulation under the WSTAA (or any such statute), nor any requirement under the WSTAA (or any statute containing any legal certainty provision similar to Section 739 of the WSTAA) or an amendment made by the WSTAA (or any such statute), 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 or Illegality).

 

(n)                                 Governing Law; Exclusive Jurisdiction; Waiver of Jury.

 

(14)  Include for base capped call.

(15)  Include for additional capped call.

(16)  For the base capped call, to be the scheduled closing date for the Base Convertible Securities.  For the additional capped call, to be the scheduled closing date for the Additional Convertible Securities.

 

29

 

(i)                                     THE AGREEMENT, THIS CONFIRMATION AND ALL MATTERS ARISING IN CONNECTION WITH THE AGREEMENT AND THIS CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE, OTHER THAN TITLE 14 OF ARTICLE 5 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

(ii)                                  Section 13(b) of the Agreement is deleted in its entirety and replaced by the following:

 

“Each party hereby irrevocably and unconditionally submits for itself and its property in any suit, legal action or proceeding relating to this Confirmation or the Agreement, or for recognition and enforcement of any judgment in respect thereof, (each, “Proceedings”) to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in New York County, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof. Nothing in this Confirmation or the Agreement precludes either party from bringing Proceedings in any other jurisdiction if (A) the courts of the State of New York or the United States of America for the Southern District of New York lack jurisdiction over the parties or the subject matter of the Proceedings or decline to accept the Proceedings on the grounds of lacking such jurisdiction; (B) the Proceedings are commenced by a party for the purpose of enforcing against the other party’s property, assets or estate any decision or judgment rendered by any court in which Proceedings may be brought as provided hereunder; (C) the Proceedings are commenced to appeal any such court’s decision or judgment to any higher court with competent appellate jurisdiction over that court’s decisions or judgments if that higher court is located outside the State of New York or Borough of Manhattan, such as a federal court of appeals or the U.S. Supreme Court; or (D) any suit, action or proceeding has been commenced in another jurisdiction by or against the other party or against its property, assets or estate and, in order  to exercise or protect its rights, interests or remedies under this Confirmation or the Agreement, the party (1) joins, files a claim, or takes any other action, in any such suit, action or proceeding, or (2) otherwise commences any Proceeding in that other jurisdiction as the result of that other suit, action or proceeding having commenced in that other jurisdiction.”

 

(iii)                               EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS CONFIRMATION OR THE AGREEMENT.

 

(o)                                 Amendment.  This Confirmation and the Agreement may not be modified, amended or supplemented, except in a written instrument signed by Counterparty and Dealer.

 

(p)                                 Counterparts.  This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

(q)                                 Tax Matters.  For purposes of Sections 4(a)(i) and (ii) of the Agreement, Counterparty agrees to deliver to Dealer, upon request, one duly executed and completed United States Internal Revenue Service Form W-9 (or successor thereto).

 

(r)                                    Withholding Tax with Respect to Non-US Counterparties. “Indemnifiable Tax” as defined in Section 14 of the Agreement shall not include (i) 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

 

30

 

in connection with the implementation of such Sections of the Code (a “FATCA Withholding Tax”) or (ii) any U.S. federal withholding tax imposed on amounts treated as dividends from sources within the United States under Section 871(m) of the Code (or any Treasury regulations or other guidance issued thereunder). 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.

 

(s)                                   Amendment to Equity Definitions.

 

(i)                                     Solely in respect of adjustments to the Cap Price pursuant to Section 8(t), Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “that may have a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “that is the result of a corporate event involving the Issuer or its securities that has, in the commercially reasonable judgment of the Calculation Agent, a material economic effect on the Shares or options on the Shares; provided that such event is not based on (a) an observable market, other than the market for the Company’s own stock or (b) an observable index, other than an index calculated and measured solely by reference to Company’s own operations.”.

 

(ii)                                  Section 12.9(b)(i) of the Equity Definitions is hereby amended by (1) replacing “either party may elect” with “Dealer may elect or, if Counterparty represents to Dealer in writing at the time of such election that (i) it is not aware of any material nonpublic information with respect to Counterparty or the Shares and (ii) it is not making such election as part of a plan or scheme to evade compliance with the U.S. federal securities laws, Counterparty may elect”.

 

(t)                                    Other Adjustments Pursuant to the Equity Definitions.  Notwithstanding anything to the contrary in the Agreement, the Equity Definitions or this Confirmation, upon the occurrence of a Merger Date, the occurrence of a Tender Offer Date, or declaration by Counterparty of the terms of any Potential Adjustment Event, the Calculation Agent shall determine in good faith and in a commercially reasonable manner whether such occurrence or declaration, as applicable, has had a material economic effect on the Transaction and, if so, may, in its good faith and commercially reasonable discretion, adjust the Cap Price to preserve the fair value of the Options (provided that in no event shall the Cap Price be less than the Strike Price; provided further that any adjustment to the Cap Price made pursuant to this Section 8(t) shall be made without duplication of any other adjustment hereunder).  Solely for purposes of this Section 8(t), the terms “Potential Adjustment Event,” “Merger Event,” and “Tender Offer” shall each have the meanings assigned to each such term in the Equity Definitions (as amended by Section 8(s)(i)).

 

(u)                                 Notice of Certain Other Events.  (A) Counterparty shall give Dealer commercially reasonable advance (but in no event less than one Exchange Business Day) written notice of the section or sections of the Indenture and, if applicable, the formula therein, pursuant to which any adjustment will be made to the Convertible Securities in connection with any Potential Adjustment Event, Merger Event or Tender Offer and (B) promptly following any such adjustment, Counterparty shall give Dealer written notice of the details of such adjustment.

 

(v)                                 Payment by Counterparty.  In the event that, following payment of the Premium, (i) an Early Termination Date occurs or is designated with respect to the Transaction as a result of a Termination Event or an Event of Default (other than an Event of Default arising under Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Counterparty owes to Dealer an amount calculated under Section 6(e) of the Agreement, or (ii) Counterparty owes to Dealer, 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.

 

(w)                               Role of Agent.  Each of Dealer and Counterparty 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

 

31

 

Agent have not given, and Counterparty 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.  Counterparty 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.

 

(x)                                 Regulatory Provisions.  The time of dealing for the Transaction will be confirmed by Dealer upon written request by Counterparty.  The Agent will furnish to Counterparty 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 the Transaction.

 

(y)                                 Method of Delivery.  Whenever delivery of funds or other assets is required hereunder by or to Counterparty, 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 Counterparty shall be transmitted exclusively through the Agent.

 

(z)                                  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:

 

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

 

2.                                      Dealer and Counterparty may use a Third Party Service Provider, and each of Dealer and Counterparty consents to such use including the communication of the relevant data in relation to Dealer and Counterparty 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 Counterparty is New York, New York, USA.

 

4.                                      The following are the applicable email addresses.

 

	
Portfolio Data:
    	
 
    	
Dealer:   [             ]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Counterparty: gconway@plugpower.com
    
	
 
    	
 
    	
 
    
	
Notice of discrepancy:
    	
 
    	
Dealer:   [             ]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Counterparty: gconway@plugpower.com
    
	
 
    	
 
    	
 
    
	
Dispute Notice:
    	
 
    	
Dealer:   [             ]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Counterparty: gconway@plugpower.com
    

 

32

 

(aa)                          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.  Counterparty confirms that it enters into this Confirmation as a party making the NFC Representation (as such term is defined in the NFC Representation Protocol).  Counterparty shall promptly notify Dealer of any change to its status as a party making the NFC Representation.

 

(bb)                          Contractual Recognition of UK Stay Resolution.  Notwithstanding anything contained in the Agreement, the parties agree that the provisions of paragraphs 1 to 4 (inclusive) of the UK (PRA Rule) Jurisdictional Module (the “UK Module”) published by the International Swaps and Derivatives Association, Inc. on 3 May 2016, as amended from time to time, shall be deemed to be incorporated into the Agreement as if references in those provisions to “Covered Agreement” were references to the Agreement, and on the basis that: (i) Dealer shall be treated as a “Regulated Entity” and as a “Regulated Entity Counterparty” with respect to Counterparty, (ii) Counterparty shall be treated as a “Module Adhering Party”, and (iii) references to the “Implementation Date” in the UK Module shall be deemed to be references to the date of this Confirmation.

 

33

 

Counterparty hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Counterparty with respect to the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Dealer.

 

 

	
 
    	
Yours faithfully,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[           ]
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
Agreed and Accepted By:
    	
 
    
	
 
    	
 
    
	
PLUG   POWER INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:Exhibit 10.2

 

EXECUTION VERSION

 

Morgan Stanley & Co. LLC
 1585 Broadway, 5th Floor
 New York, NY 10036

 

March 22, 2018

 

To:                             Plug Power Inc.
 968 Albany Shaker Road
 Latham, NY  12110
 Attention:                                         Gerard L. Conway Jr.
 Telephone No.:             (518) 738-0970
 Facsimile No.:                   (518) 782-7884

 

Re:                            Forward Stock Purchase Transaction

 

Dear Sir / Madam:

 

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between Morgan Stanley & Co. LLC (“Dealer”) and Plug Power Inc. (“Issuer” or “Counterparty”) on the Trade Date specified below (the “Transaction”).  This letter agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  This Confirmation shall replace any previous agreements and serve as the final documentation for the Transaction.

 

The definitions and provisions contained in the 2006 ISDA Definitions (the “Swap Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions” and together with the Swap Definitions, the “Definitions”) in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated into this Confirmation.  In the event of any inconsistency between the Swap Definitions and the Equity Definitions, the Equity Definitions shall govern and in the event of any inconsistency between the Definitions and this Confirmation, this Confirmation shall govern.

 

1.                                      This Confirmation evidences a complete binding agreement between Counterparty and Dealer as to the terms of the Transaction to which this Confirmation relates.  This Confirmation (notwithstanding anything to the contrary herein) shall be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Master Agreement”) as if Dealer and Counterparty had executed an agreement in such form (but without any Schedule except for (i) the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine), (ii) the election of US Dollars (“USD”) as the Termination Currency and (iii) (a) the election that the “Cross Default” provisions of Section 5(a)(vi) of the Master Agreement shall apply to Dealer with a “Threshold Amount” of three percent of Dealer’s parent’s shareholders’ equity, (b) the phrase “, or becoming capable at such time of being declared,” shall be deleted from clause (1) of such Section 5(a)(vi), (c) “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement, except that such term shall not include obligations in respect of deposits received in the ordinary course of Dealer’s banking business and (d) the following language shall be added to the end thereof: “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission of an administrative or operational nature; (y) funds were available to enable the party to make the payment when due; and (z) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.”) on the Trade Date.  In the event of any inconsistency between the provisions of the Master 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 Master Agreement.

 

2.                                      The Transaction constitutes a Share Forward for purposes of the Equity Definitions.  The terms of the particular Transaction to which this Confirmation relates are as follows:

 

 

	
General Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Trade Date:
    	
 
    	
March 22, 2018
    
	
 
    	
 
    	
 
    
	
Effective Date:
    	
 
    	
March 27, 2018, subject to cancellation of the   Transaction as provided in Section 7(c) “Early Unwind” below.
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The shares of common stock, $0.01 par value per   Share, of Counterparty (Ticker Symbol: “PLUG”).
    
	
 
    	
 
    	
 
    
	
Number of   Shares:
    	
 
    	
Initially 14,397,906 Shares. On each Settlement   Date, the Number of Shares shall be reduced by the Daily Number of Shares   delivered by Dealer to Counterparty on such Settlement Date.
    
	
 
    	
 
    	
 
    
	
Daily Number of   Shares:
    	
 
    	
For any Valuation Date occurring prior to the   Maturity Date, the number of Shares specified by Dealer in the related   Settlement Notice (as defined below under “Valuation Dates”), which shall not   exceed the Number of Shares on such Valuation Date, and for the Valuation   Date occurring on the Maturity Date, if any, the Number of Shares on such   Valuation Date.
    
	
 
    	
 
    	
 
    
	
Maturity Date:
    	
 
    	
March 15, 2023 (or, if such date is not a   Scheduled Trading Day, the next following Scheduled Trading Day).
    
	
 
    	
 
    	
 
    
	
Forward Price:
    	
 
    	
$1.91
    
	
 
    	
 
    	
 
    
	
Prepayment:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Prepayment   Amount:
    	
 
    	
$27,500,000.46
    
	
 
    	
 
    	
 
    
	
Prepayment Date:
    	
 
    	
The Effective Date, so long as no cancellation of   the Transaction has occurred as provided in Section 7(c) “Early   Unwind.”
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The NASDAQ Capital 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.
    
	
 
    	
 
    	
 
    
	
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 Master Agreement   with respect to which Dealer is the sole Defaulting Party, Counterparty 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 determined by the Calculation Agent.
    

 

2

 

	
 
    	
 
    	
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 Counterparty, the Calculation Agent will   provide to Counterparty by email to the email address provided by   Counterparty 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; provided, however, that in no event will the Calculation Agent be   obligated to share with Counterparty any proprietary or confidential data or   information or any proprietary or confidential models used by it.
    
	
 
    	
 
    	
 
    
	
Settlement   Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Physical Settlement:
    	
 
    	
Applicable. In lieu of   Section 9.2(a)(iii) of the Equity Definitions, Dealer will deliver   to Counterparty the Daily Number of Shares for the related Valuation Date on   the relevant Settlement Date. Section 9.11 of the Equity Definitions shall   be amended by excluding any representations therein relating to restrictions,   obligations, limitations or requirements under applicable securities laws   arising as a result of the fact that Counterparty is the Issuer of the   Shares.
    
	
 
    	
 
    	
 
    
	
Valuation Dates:
    	
 
    	
(a) Any Scheduled Trading Day following the   Effective Date designated by Dealer in a written notice (a “Settlement Notice”) that is delivered to Counterparty at   least two Scheduled Trading Days prior to such Valuation Date, specifying   (i) the Daily Number of Shares for each such Valuation Date and   (ii) the related Settlement Date(s) and (b) the Maturity Date.

   If, on any Exchange Business Day, the Number of Shares is greater than the   number of Shares underlying all of Counterparty’s then outstanding 5.50% Convertible   Senior Notes due 2023 (the “Notes”),   Counterparty may provide written notice to Dealer of such fact (such notice,   a “Notional Excess Notice”). Promptly   following the date 90 calendar days immediately following the date on which   Dealer receives a Notional Excess Notice from Counterparty (taking into   consideration the amount of time necessary to complete any related unwind   activity with respect to Dealer’s commercially reasonable Hedge Positions),   Dealer shall deliver a Settlement Notice to Counterparty designating a   Valuation Date and related Settlement Date with respect to a Daily Number of   Shares such that the Number of Shares following such Settlement Date is less   than or equal to the number of Shares underlying all then outstanding Notes.

   In addition, if, on any Exchange Business Day (a “Measurement   Day”), Dealer determines in its sole discretion that the cost to   borrow a number of Shares equal to the Number of Shares as of such   Measurement Day (x) is less than 25 basis points and (y) has been   less than 25 basis points for 25 out of the 30 consecutive Exchange Business   Days immediately preceding such Measurement Day (a “Stock   Borrow Determination”), then, promptly following the date 90   calendar days immediately following such Stock Borrow Determination (taking   into consideration the amount of time necessary to complete any related   unwind activity with respect to Dealer’s commercially reasonable Hedge   Positions), Dealer shall deliver a Settlement Notice to Counterparty   designating a Valuation Date and related Settlement Date with respect to a   Daily Number of
    

 

3

 

	
 
    	
 
    	
Shares equal to the Number of Shares as of the date   of such Settlement Notice.
    
	
 
    	
 
    	
 
    
	
Market   Disruption Event:
    	
 
    	
The definition of “Market Disruption Event” in   Section 6.3(a) of the Equity Definitions is hereby amended   (A) by deleting the words “at any time during the one hour period that   ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation   Time or Knock-out Valuation Time, as the case may be” and inserting the words   “at any time on any Valuation Date” after the word “material,” in the third   line thereof, and (B) by replacing the words “or (iii) an Early   Closure.” therein with “(iii) an Early Closure, or (iv) a   Regulatory Disruption.”

   Section 6.3(d) of the Equity Definitions is hereby amended by   deleting the remainder of the provision following the term “Scheduled Closing   Time” in the fourth line thereof.
    
	
 
    	
 
    	
 
    
	
Regulatory   Disruption:
    	
 
    	
Any event that Dealer, in its commercially   reasonable discretion and in good faith, based on the advice of legal   counsel, determines makes it advisable with regard to any legal, regulatory   or self-regulatory requirements or related policies and procedures applicable   to Dealer (provided that such requirements, policies and procedures relate to   legal or regulatory issues and are generally applicable in similar situations   and applied in a consistent manner in similar transactions), including any   requirements, policies or procedures relating to Dealer’s commercially   reasonable hedging activities hereunder, to refrain from or decrease any   market activity in connection with the Transaction. Dealer shall notify   Counterparty as soon as commercially reasonably practicable (but in no event   later than two Scheduled Trading Days) that a Regulatory Disruption has   occurred and the Valuation Dates affected by it, and Dealer shall promptly   notify Counterparty of any termination of such Regulatory Disruption.
    
	
 
    	
 
    	
 
    
	
Dividends:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dividend   Payment:
    	
 
    	
In lieu of Section 9.2(a)(iii) of the   Equity Definitions, Dealer will pay to Counterparty the Dividend Amount on   the Dividend Payment Date.
    
	
 
    	
 
    	
 
    
	
Dividend Amount:
    	
 
    	
(a) 100% of the per Share amount of any cash   dividend declared by the Issuer to holders of record of a Share on any record   date occurring during the period from, and including, the Effective Date to,   but excluding, the final Settlement Date, multiplied by   (b) the Number of Shares on such record date (excluding, for the   avoidance of doubt, any Shares delivered by Dealer to Counterparty on such   record date, if such record date is a Settlement Date).
    
	
 
    	
 
    	
 
    
	
Dividend Payment   Date:
    	
 
    	
The third Currency Business Day immediately   following each date on which the relevant Dividend Amount is paid by the   Issuer to shareholders of record.
    
	
 
    	
 
    	
 
    
	
Share   Adjustments:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Method of   Adjustment:
    	
 
    	
Calculation Agent Adjustment. For the avoidance of   doubt, the payment of any cash dividend or distribution on the Shares shall   not constitute a Potential Adjustment Event but instead shall be governed
    

 

4

 

	
 
    	
 
    	
by the provisions set forth under the heading   “Dividends” above.
    
	
 
    	
 
    	
 
    
	
Extraordinary   Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
New Shares:
    	
 
    	
In the definition of New Shares in   Section 12.1(i) of the Equity Definitions, the text in clause   (i) shall be deleted in its entirety and replaced with “publicly quoted,   traded or listed on any of the New York Stock Exchange, The NASDAQ Global   Select Market, The NASDAQ Global Market or The NASDAQ Capital Market (or   their respective successors)”.
    
	
 
    	
 
    	
 
    
	
Consequences of   Merger Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Share-for-Share:
    	
 
    	
Calculation Agent Adjustment
    
	
 
    	
 
    	
 
    
	
Share-for-Other:
    	
 
    	
Calculation Agent Adjustment or Cancellation and   Payment, at the sole election of Dealer
    
	
 
    	
 
    	
 
    
	
Share-for-Combined:
    	
 
    	
Calculation Agent Adjustment or Cancellation and   Payment, at the sole election of Dealer
    
	
 
    	
 
    	
 
    
	
Consequences of   Tender Offers:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Tender Offer:
    	
 
    	
Applicable; provided 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% and   less than 100% of the outstanding voting shares of the Issuer” with   “(x) greater than 15% and less than 100% of the outstanding Shares in   respect of any Tender Offer made by any entity or person other than the   Issuer or any subsidiary thereof or (y) greater than 20% and less than   100% of the outstanding Shares in respect of any Tender Offer made by the Issuer   or any subsidiary thereof”.
    
	
 
    	
 
    	
 
    
	
Share-for-Share:
    	
 
    	
Calculation Agent Adjustment
    
	
 
    	
 
    	
 
    
	
Share-for-Other:
    	
 
    	
Calculation Agent Adjustment
    
	
 
    	
 
    	
 
    
	
Share-for-Combined:
    	
 
    	
Calculation Agent Adjustment
    
	
 
    	
 
    	
 
    
	
Calculation   Agent Adjustment:
    	
 
    	
If, with respect to a Merger Event or a Tender   Offer, the consideration for the Shares includes (or, at the option of a   holder of Shares, may include) shares of an entity or person that is not a   corporation or is not organized under the laws of the United States, any   State thereof or the District of Columbia, then Cancellation and Payment may   apply at Dealer’s sole election.
    
	
 
    	
 
    	
 
    
	
Composition of   Combined Consideration:
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
 
    
	
Nationalization, Insolvency   or Delisting:
    	
 
    	
Cancellation and Payment; provided   that, in addition to the provisions of Section 12.6(a)(iii) of the   Equity Definitions, it 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, The NASDAQ Global Market or The NASDAQ Capital Market   (or their respective successors); if the Shares are immediately re-listed,
    

 

5

 

	
 
    	
 
    	
re-traded or re-quoted on any of the New York Stock   Exchange, The NASDAQ Global Select Market, The NASDAQ Global Market or The   NASDAQ Capital Market (or their respective successors), such exchange or   quotation system shall thereafter be deemed to be the Exchange. For purposes   of this Confirmation (x) the phrase “will be cancelled” in the first   line of Section 12.6(c)(ii) of the Equity Definitions shall be   replaced with the phrase “may be cancelled by Dealer in its reasonable   discretion” and (y) the words “if so cancelled” shall be inserted   immediately following the word “and” in the second line of   Section 12.6(c)(ii) of the Equity Definitions.
    
	
 
    	
 
    	
 
    
	
Additional   Disruption Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Change in Law:
    	
 
    	
Applicable; provided that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended by   (i) replacing the phrase “the interpretation” in the third line thereof   with the phrase “, or public announcement of, the formal or informal   interpretation”, (ii) replacing the word “Shares” where it appears in   clause (X) thereof with the words “Hedge Position”, (iii) adding   the phrase “in the manner contemplated by the Hedging Party on the Trade   Date” immediately following the word “Transaction” in clause   (X) thereof, and (iv) replacing the parenthetical beginning after   the word “regulation” in the second line thereof the words “(including, for   the avoidance of doubt and without limitation, (x) any tax law or   (y) adoption, effectiveness or promulgation of new regulations authorized   or mandated by existing statute)”.
    
	
 
    	
 
    	
 
    
	
Failure to   Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Disruption:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Increased Cost   of Hedging:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Loss of Stock   Borrow:
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
 
    
	
Increased Cost   of Stock Borrow:
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
 
    
	
Hedging Party:
    	
 
    	
For all applicable Additional Disruption Events,   Dealer. For the avoidance of doubt, whenever the Calculation Agent is called   upon to make an adjustment or determination pursuant to the terms of this   Confirmation or the Equity Definitions to take into account the effect of an   event on the Hedging Party, the Calculation Agent shall make such adjustment   or determination by reference to the effect of such event on Hedging Party,   assuming that Hedging Party maintains a commercially reasonable Hedge   Position.
    
	
 
    	
 
    	
 
    
	
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 Counterparty, the   Determining Party will provide to Counterparty by email to the email address   provided by Counterparty 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; provided,   however, that in no event will the   Determining Party be obligated to share with Counterparty any
    

 

6

 

	
 
    	
 
    	
proprietary or confidential data or information or   any proprietary or confidential models used by it.
    
	
 
    	
 
    	
 
    
	
Hedging   Adjustments:
    	
 
    	
For the avoidance of doubt, whenever the Calculation   Agent 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 shall make such adjustment by reference to the   effect of such event on Dealer, assuming that Dealer maintains a commercially   reasonable Hedge Position.
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements and Acknowledgements Regarding Hedging   Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional   Acknowledgements:
    	
 
    	
Applicable
    

 

3.                                      Account Details:

 

(a)                           Account for payments to Counterparty:

 

To be provided by Counterparty.

 

Account for delivery of Shares to Counterparty:

 

To be provided by Counterparty.

 

(b)                                Account for payments to Dealer:

 

To be provided by Dealer.

 

Account for delivery of Shares from Dealer:

 

To be provided by Dealer.

 

4.                                     Offices:

 

The Office of Counterparty for the Transaction is:  Inapplicable, Counterparty is not a Multibranch Party.

 

The Office of Dealer for the Transaction is: New York

 

Morgan Stanley & Co. LLC

1585 Broadway, 5th Floor

New York, NY 10036

 

5.                                     Notices: For purposes of this Confirmation:

 

(a)                                 Address for notices or communications to Counterparty:

 

	
To:
    	
 
    	
Plug Power Inc.
    
	
 
    	
 
    	
968 Albany Shaker Road
    
	
 
    	
 
    	
Latham, NY 12110
    
	
Attn:
    	
 
    	
Gerard L. Conway Jr.
    
	
Telephone No.:
    	
 
    	
(518) 738-0970
    

 

7

 

	
Email:
    	
 
    	
gconway@plugpower.com
    
	
 
    	
 
    	
 
    
	
with a copy to:
    
	
 
    	
 
    	
 
    
	
Goodwin Procter   LLP
    
	
The New York   Times Building
    
	
620 Eighth   Avenue
    
	
New York, NY   10018
    
	
Attn:
    	
 
    	
Yoel Kranz
    
	
Telephone:
    	
 
    	
(212) 813-8800
    
	
Email:
    	
 
    	
ykranz@goodwinlaw.com
    

 

(b)                                 Address for notices or communications to Dealer:

 

	
To:
    	
 
    	
Morgan Stanley & Co. LLC
    
	
 
    	
 
    	
1585 Broadway, 4th Floor
    
	
 
    	
 
    	
New York, NY 10036
    
	
Attn:
    	
 
    	
Usman Khan
    
	
Telephone:
    	
 
    	
(212) 761-0955
    
	
Facsimile:
    	
 
    	
(212) 404-9480
    
	
Email:
    	
 
    	
Usman.S.Khan@morganstanley.com
    

 

	
With a copy to:
    	
 
    	
Morgan Stanley & Co. LLC
    	
 
    
	
 
    	
 
    	
1221 Avenue of   the Americas, 34th Floor
    	
 
    
	
 
    	
 
    	
New York, NY   10020
    	
 
    
	
Attn:
    	
 
    	
Steven Seltzer
    	
 
    
	
Telephone:
    	
 
    	
(212) 761-1719
    	
 
    
	
Facsimile:
    	
 
    	
(212) 404-9480
    	
 
    
	
Email:
    	
 
    	
Steven.Seltzer1@morganstanley.com
    	
 
    

 

6.                                      Representations, Warranties and Agreements.

 

I.                                        Representations, Warranties and Agreements of Counterparty.  Each of the representations and warranties of Counterparty set forth in Section 1 of the Purchase Agreement (the “Purchase Agreement”), dated as of March 22, 2018, between Counterparty and Morgan Stanley & Co. LLC and Barclays Capital Inc., 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. Furthermore, in addition to the representations set forth in the Master Agreement, Counterparty represents and warrants to, and agrees with, Dealer, on the date hereof, that:

 

(a)         (i) It is not entering into the Transaction on behalf of or for the accounts of any other person or entity, and will not transfer or assign its obligations under the Transaction or any portion of such obligations to any other person or entity except in compliance with applicable laws and the terms of the Transaction; (ii) it understands that the Transaction is subject to complex risks which may arise without warning and may at times be volatile, and that losses may occur quickly and in unanticipated magnitude; (iii) it has consulted with its legal advisor(s) and has reached its own conclusions about the Transaction, and any legal, regulatory, tax, accounting or economic consequences arising from the Transaction; (iv) it has concluded that the Transaction is suitable in light of its own investment objectives, financial condition and expertise; and (v) neither Dealer nor any of its affiliates has advised it with respect to any legal, regulatory, tax, accounting or economic consequences arising from the Transaction, and neither Dealer nor any of its affiliates is acting as agent, or advisor for Counterparty in connection with the Transaction.

 

(b)         Counterparty (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.

 

8

 

(c)          The reports and other documents filed by Counterparty with the U.S. Securities and Exchange Commission (“SEC”) pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), when considered as a whole (with the more recent such reports and documents deemed to update prior statements and amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.  Counterparty is not in possession of any material nonpublic information regarding the business, operations or prospects of Counterparty or the Shares.

 

(d)         Counterparty 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)          Counterparty 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 Counterparty, other than a distribution meeting the requirements of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation M.  Counterparty shall not, until the second Scheduled Trading Day immediately following the Effective Date, engage in any such distribution.  Counterparty shall not, during (x) the period beginning on, and including, the 41st Scheduled Trading Day immediately preceding March 15, 2023 and ending on, and including, the second Scheduled Trading Day immediately following March 15, 2023 or (y) the period beginning on, and including, the date on which Counterparty repurchases Notes in connection with a “Fundamental Change” (as such term is defined in the indenture governing the Notes (the “Indenture”)), Counterparty or any subsidiary thereof enters into any agreement to repurchase or exchange any Notes other than pursuant to the terms of the Indenture or Counterparty or any subsidiary thereof repurchases or exchanges Notes pursuant to a tender offer for the Notes (each such event, a “Repurchase”), and ending on, and including, the second Scheduled Trading Day immediately following completion by Dealer of any unwind activity with respect to Dealer’s Hedge Positions as a result of any such Repurchase (provided that Dealer shall complete such activity within 35 Scheduled Trading Days (excluding any Scheduled Trading Day on which a Market Disruption Event occurs) of any such Repurchase) (any period described in clause (x) or clause (y) a “Prohibited Period”), engage in any such distribution, other than a distribution meeting the requirements of one of the exceptions set forth in Rule 101(b) and Rule 102(b) of Regulation M.  Counterparty shall give contemporaneous written notice to Dealer of any Repurchase, and Dealer shall give prompt written notice to Counterparty of its completion of any unwind activity with respect to Dealer’s Hedge Positions as a result of such Repurchase.

 

(f)           The Transaction was approved by the board of directors of Counterparty, and Counterparty is entering into the Transaction solely for the purposes stated in such board resolution.  There is no internal policy of Counterparty, whether written or oral, that would prohibit Counterparty from entering into any aspect of the Transaction, including, but not limited to, the purchases of Shares to be made pursuant hereto.

 

(g)          Counterparty has all necessary corporate power and authority to execute, deliver and perform its obligations in respect of the Transaction; such execution, delivery and performance have been duly authorized by all necessary corporate action on Counterparty’s part; and this Confirmation has been duly and validly executed and delivered by Counterparty and constitutes its valid and binding obligation, enforceable against Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ 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.

 

(h)         On and immediately after the Trade Date and the Prepayment Date (A) the assets of Counterparty at their fair valuation exceed the liabilities of Counterparty, including contingent liabilities, (B) the capital of Counterparty is adequate to conduct the business of Counterparty, (C) Counterparty has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts mature, (D) Counterparty is not, and will not be, “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)), and (E) Counterparty could have purchased Shares with an aggregate purchase price equal to the Prepayment Amount in compliance with the corporate laws of the jurisdiction of its incorporation.

 

(i)             Counterparty has made, and will make, all filings required to be made by it with the SEC with respect to the Transaction contemplated hereby.

 

9

 

(j)            Neither the execution and delivery of this Confirmation nor the incurrence or performance of obligations of Counterparty hereunder will (i) conflict with or result in a breach of the certificate of incorporation or by-laws (or any equivalent documents) of Counterparty, or (ii) violate any applicable law or regulation, or any order, writ, injunction or decree of any court or governmental authority or agency, or (iii) conflict with or result in a breach of any agreement or instrument to which Counterparty is a party or by which Counterparty is bound or to which Counterparty is subject, or constitute a default under, or result in the creation of any lien under, any such agreement or instrument, except, in the case of clauses (ii) and (iii), as would not reasonably be expected to have a material adverse effect on Counterparty.

 

(k)         No consent, approval, authorization, or order of, or filing with, any governmental agency or body or any court is required in connection with the execution, delivery or performance by Counterparty of this Confirmation, except such as have been obtained or made and such as may be required under the Securities Act of 1933, as amended (the “Securities Act”), or state securities laws.

 

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

 

(m)     To the knowledge of Counterparty, no U.S. state or local law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares, other than any regulation that Dealer would be subject to as a result of its being a regulated entity under various applicable laws, including U.S. securities laws and FINRA.

 

(n)         On the Trade Date and on any day during a Prohibited Period, neither Counterparty nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable or exercisable for Shares, excluding the call option transactions entered into with Dealer and Barclays Bank PLC, through its agent Barclays Capital Inc., on the date hereof.

 

II.                                   Representations and Warranties of Counterparty and Dealer.  Counterparty and Dealer hereby represent and warrant to Dealer and Counterparty, respectively, on the date hereof that:

 

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

 

(b)         Each of Dealer and Counterparty 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, Counterparty represents and warrants to Dealer that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own account without a view to the distribution or resale thereof and (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws.

 

7.                                      Other Provisions.

 

(a)         Opinions.  As a condition to the effectiveness of the Transaction, Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Effective Date and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement and Section 6.I(l) hereof; provided that any such opinion of counsel may contain customary exceptions and qualifications, including, without limitation, exceptions and qualifications relating to indemnification provisions.

 

(b)         Repurchase Notices.  Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase Notice”) on such day if, following such repurchase, the Notice Percentage would reasonably be expected to be (i) greater than 6.75% and (ii) greater by 0.5% than the Notice Percentage included in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof).  The “Notice 

 

10

 

Percentage” as of any day is the fraction, expressed as a percentage, the numerator of which is the Number of Shares and the denominator of which is the number of Shares outstanding on such day.  Counterparty 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 may become subject to, as a result of Counterparty’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 as a result of Counterparty’s failure to provide Dealer with a Repurchase Notice in accordance with this paragraph, such Indemnified Person shall promptly notify Counterparty in writing, and Counterparty, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others Counterparty may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding.  Counterparty shall not be liable for any settlement of any proceeding contemplated by this paragraph that is effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Counterparty agrees to indemnify any Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  Counterparty shall not, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding contemplated by this paragraph that is in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding on terms reasonably satisfactory to such Indemnified Person.  If the indemnification provided for in this paragraph is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then Counterparty hereunder, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities.  The remedies provided for in this paragraph (b) are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.  The indemnity and contribution agreements contained in this paragraph shall remain operative and in full force and effect regardless of the termination of the Transaction.

 

(c)          Early Unwind.  In the event the sale of the Notes pursuant to the Purchase Agreement is not consummated with the Initial Purchasers for any reason, or Counterparty fails to deliver to Dealer an opinion of counsel as required pursuant to Section 7(a), in each case by 12:00 p.m. (New York City time) on the Prepayment Date, or such later date as agreed upon by the parties (the Prepayment 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 Counterparty 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 Counterparty 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.

 

(d)         Transfer or Assignment.

 

(i) Dealer may, without Counterparty’s consent, transfer or assign (a “Transfer”) all or any part of its rights or obligations under the Transaction (A) to any affiliate of Dealer (1) that has a rating for its long term, unsecured and unsubordinated indebtedness that is equal to or better than Dealer’s credit rating at the time of such Transfer or (2) whose obligations hereunder will be guaranteed, pursuant to the terms of a customary guarantee in a form used by Dealer generally for similar transactions, by Dealer or its ultimate parent or (B) to any other third party with a rating for its long term, unsecured and unsubordinated indebtedness (or to any other third party whose obligations are guaranteed by an entity with a rating for its long term, unsecured and unsubordinated indebtedness) equal to or better than the lesser of (1) the credit rating of Dealer at the time of the transfer and (2) A- by Standard and Poor’s Rating Group, Inc. or its successor (“S&P”), or A3 by Moody’s Investor Service, Inc. (“Moody’s”) or, if 

 

11

 

either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or better by a substitute rating agency mutually agreed by Counterparty and Dealer.  Dealer shall promptly provide written notice to Counterparty of any such Transfer.  If at any time at which (A) the Section 16 Percentage exceeds 7.5%, (B) the Forward 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 is unable after using its commercially reasonable efforts to effect a transfer or assignment of a portion of the Transaction to a third party on pricing terms commercially reasonably acceptable to Dealer and within a time period commercially 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 portion of the Transaction, a payment shall be made pursuant to Section 6 of the Master 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 Shares equal to the number of Shares underlying the Terminated Portion, (2) Counterparty 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 7(f) shall apply to any amount that is payable by Dealer to Counterparty pursuant to this sentence as if Counterparty was not the Affected Party).   The “Section 16 Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and each person subject to aggregation of Shares with Dealer under Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder directly or indirectly beneficially own (as defined under Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder) and (B) the denominator of which is the number of Shares outstanding.  The “Forward Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the Number of Shares 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 Counterparty 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 commercially 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 commercially reasonable discretion, minus (B) 1% of the number of Shares outstanding.

 

(ii) 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 to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such shares or other securities and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations (a “Dealer Affiliated Entity”).  Dealer shall be discharged of its obligations to Counterparty to the extent of any such performance by such Dealer Affiliated Entity of Dealer’s obligations hereunder.

 

(e)          Staggered Settlement.  If upon advice of counsel with respect to any legal, regulatory or self-regulatory requirements or related policies or procedures applicable to Dealer, including any requirements, policies or procedures relating to Dealer’s commercially reasonable hedging activities hereunder that would be customarily applicable to transactions of this type by Dealer, Dealer commercially reasonably determines that it would not be practicable or advisable to deliver, or to acquire Shares to deliver, any or all of the Shares to be delivered by Dealer on any Settlement Date for the Transaction, Dealer may, by notice to Counterparty on or prior to such Settlement Date (a “Nominal Settlement Date”), elect to deliver the Daily Number of Shares otherwise deliverable on such Nominal Settlement Date on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on a Nominal Settlement Date as follows:

 

(1)                     in such notice, Dealer will specify to Counterparty the related Staggered Settlement Dates (the first of which will be such Nominal Settlement Date and the last of which will be no later than the twentieth (20th) Exchange Business Day following such Nominal Settlement Date) and the number of Shares that it will deliver on each Staggered Settlement Date or delivery times;

 

12

 

(2)                     the aggregate number of Shares that Dealer will deliver to Counterparty hereunder on all such Staggered Settlement Dates or delivery times will equal the number of Shares that Dealer would otherwise be required to deliver on such Nominal Settlement Date; and

 

(3)                     the Physical Settlement terms will apply on each Staggered Settlement Date, except that the Daily Number of Shares otherwise deliverable on such Nominal Settlement Date will be allocated among such Staggered Settlement Dates or delivery times as specified by Dealer in the notice referred to in clause (1) above.

 

Notwithstanding anything herein to the contrary, solely in connection with a Staggered Settlement Date, Dealer shall be entitled to deliver Shares to Counterparty from time to time prior to the date on which Dealer would be obligated to deliver them to Counterparty pursuant to the Physical Settlement terms set forth above, and Counterparty agrees to credit all such early deliveries against Dealer’s obligations hereunder in the direct order in which such obligations arise.  No such early delivery of Shares will accelerate or otherwise affect any of Counterparty’s obligations to Dealer hereunder.

 

(f)           Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.  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, and if Dealer would owe any amount to Counterparty pursuant to Section 6(d)(ii) of the Master Agreement or any Cancellation Amount pursuant to Article 12 of the Equity Definitions (any such amount, a “Payment Obligation”), then Dealer shall satisfy the Payment Obligation by the Share Termination Alternative (as defined below).

 

	
Share Termination   Alternative:
    	
 
    	
If applicable, Dealer shall deliver to Counterparty   the Share Termination Delivery Property on, or within a commercially   reasonable period of time after, the date when the relevant Payment   Obligation would otherwise be due pursuant to Section 12.7 or 12.9 of   the Equity Definitions or Section 6(d)(ii) and 6(e) of the   Master Agreement, as applicable (the “Share Termination   Payment Date”), in satisfaction of such Payment Obligation in the   manner reasonably requested by Counterparty free of payment.
    
	
 
    	
 
    	
 
    
	
Share Termination   Delivery Property:
    	
 
    	
A number of Share Termination Delivery Units, as   calculated by the Calculation Agent, equal to the Payment Obligation, divided by the Share Termination Unit Price. The   Calculation Agent shall adjust the Share Termination Delivery Property by   replacing any fractional portion of a security therein with an amount of cash   equal to the value of such fractional security based on the values used to   calculate the Share Termination Unit Price.
    
	
 
    	
 
    	
 
    
	
Share Termination Unit   Price:
    	
 
    	
The value to Dealer of property contained in one   Share Termination Delivery Unit, as determined by the Calculation Agent in   its discretion by commercially reasonable means and notified by the   Calculation Agent to Dealer at the time of notification of the Payment   Obligation. For the avoidance of doubt, the parties agree that in determining   the Share Termination Delivery Unit Price the Calculation Agent may consider   the purchase price paid in connection with the purchase of Share Termination   Delivery Property or the per 
    

 

13

 

	
 
    	
 
    	
Share unwind price of any Share-linked Hedge   Positions, as the case may be.
    
	
 
    	
 
    	
 
    
	
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 such 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, as determined by the   Calculation Agent.
    
	
 
    	
 
    	
 
    
	
Failure to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Other applicable   provisions:
    	
 
    	
If Share Termination Alternative is applicable, the   provisions of Sections 9.8, 9.9 and 9.11 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”; provided that the Representation and   Agreement contained in Section 9.11 of the Equity Definitions shall be   modified by excluding any representations therein relating to restrictions,   obligations, limitations or requirements under applicable securities laws as   a result of the fact that Counterparty is the issuer of any Share Termination   Delivery Units (or any part thereof). “Share Termination Settled” in relation   to the Transaction means that the Share Termination Alternative is applicable   to the Transaction.
    

 

(g)          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, 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, Early Termination Event, Extraordinary Event or Additional Disruption Event under this Confirmation 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.

 

(h)         No Collateral, Netting or Setoff.  Notwithstanding any provision of the Master Agreement, or any other agreement between the parties, to the contrary, no collateral is transferred in connection with the Transaction.  Obligations under the Transaction shall not be netted, recouped or set off (including pursuant to Section 6 of the Master Agreement) against any other obligations of the parties, whether arising under the Master Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be netted, recouped or set off (including pursuant to Section 6 of the Master Agreement) against obligations under the Transaction, whether arising under the Master Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of setoff, netting or recoupment.

 

(i)             Status of Claims in Bankruptcy.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to Dealer rights against Counterparty with respect to the Transaction that are senior to the claims 

 

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of common stockholders of Counterparty in any U.S. bankruptcy proceedings of Counterparty; 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 Counterparty 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.

 

(j)            Governing Law.  This Confirmation will be governed by, and construed in accordance with, the laws of the State of New York (without reference to choice of law doctrine).

 

(k)         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 either 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.

 

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

 

(m)     Right to Extend.  Dealer may postpone or add, in whole or in part, any Valuation Dates and related Settlement Dates, or any other date of valuation, payment or delivery by Dealer, with respect to some or all of the Number of Shares hereunder, if Dealer reasonably determines, in its good faith and commercially reasonable discretion, based on advice of counsel in the case of the immediately following clause (ii), that such action is reasonably necessary or appropriate (i) to preserve Dealer’s commercially reasonable hedging or hedge unwind activity hereunder in light of existing liquidity conditions or (ii) 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 Counterparty or an affiliated purchaser of Counterparty, be in compliance with applicable legal, regulatory or self-regulatory requirements or related policies and procedures applicable to Dealer, including any requirements, policies or procedures relating to Dealer’s commercially reasonable hedging activities hereunder; provided that in no event shall Dealer have the right to so postpone or add any Valuation Date(s), Settlement Date(s) or any other date of valuation, payment or delivery beyond the 30th Scheduled Trading Day (excluding any Scheduled Trading Day on which a Market Disruption Event occurs) immediately following the Maturity Date.

 

(n)         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 Master 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 Master 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 Master Agreement)).

 

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

 

(p)         Delivery or Receipt of Cash.  For the avoidance of doubt, other than payment of the Prepayment Amount by Counterparty and receipt by Counterparty of any payment pursuant to the provisions under the heading “Dividends” in Section 2 above, nothing in this Confirmation shall be interpreted as requiring Counterparty to pay 

 

15

 

or receive cash, except in circumstances where payment or receipt of cash is within Counterparty’s control or in those circumstances in which holders of Shares would also receive cash.

 

(q)         Notice.  Counterparty shall, upon obtaining knowledge of the occurrence of any event that would, with the giving of notice, the passage of time or the satisfaction of any condition, constitute an Event of Default in respect of which it would be the Defaulting Party, a Termination Event in respect of which it would be an Affected Party, a Potential Adjustment Event or an Extraordinary Event (including without limitation an Additional Disruption Event), notify Dealer within one Scheduled Trading Day of the occurrence of obtaining such knowledge.

 

(r)            Agreements and Acknowledgements Regarding Hedging.  Counterparty understands, acknowledges and agrees that: (i) at any time on and prior to the final Valuation 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 commercially reasonable hedge position with respect to the Transaction; (ii) Dealer and its affiliates also may be active in the market for Shares other than in connection with commercially reasonable hedging activities in relation to the Transaction; (iii) Dealer shall make its own determination as to whether, when or in what manner any commercially reasonable hedging or market activities in securities of Counterparty 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 Forward Price; and (iv) any market activities of Dealer and its affiliates with respect to Shares may affect the market price and volatility of Shares in a manner that may be adverse to Counterparty.

 

(s)           Tax Matters.

 

(i) Withholding Tax imposed on payments to non-US counterparties under the United States Foreign Account Tax Compliance Act. “Tax” and “Indemnifiable Tax”, each as defined in Section 14 of the Master Agreement, shall not include any U.S. federal withholding tax imposed or collected pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (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 Master Agreement.

 

(ii) HIRE Act. “Tax” and “Indemnifiable Tax”, each as defined in Section 14 of the Master 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.

 

(iii) Tax documentation. Counterparty and Dealer shall provide to each other valid U.S. Internal Revenue Service Form W-9, or if applicable, Form W-8 BEN, Form W-8 BEN-E, or other applicable Form W-8, or any successor(s) thereto, (a) on or before the date of execution of this Confirmation and (b) promptly upon learning that any such tax form previously provided has become obsolete or incorrect, and further shall promptly provide such other tax forms and documents as reasonably requested.

 

[Signatures to follow on separate page]

 

16

 

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

 

	
 
    	
Yours sincerely,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MORGAN STANLEY & CO.   LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Pecullan
    
	
 
    	
 
    	
Name: Scott Pecullan
    
	
 
    	
 
    	
Title:Managing Director
    

 

Confirmed as of the date first

above written:

 

	
PLUG POWER INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Andrew Marsh
    	
 
    	
 
    
	
 
    	
Name: Andrew Marsh
    	
 
    	
 
    
	
 
    	
Title: Chief Executive Officer

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