Document:

Exhibit 10.1

 

EXECUTION VERSION

 

	
 
    	
March 18,   2011
    

 

To:                            Hawaiian Holdings, Inc.
 3375 Koapaka Street, Suite G-350
 Honolulu, Hawaii 96819

 

From:                UBS AG, London Branch
 c/o UBS Securities LLC
 299 Park Avenue
 New York, NY 10171

 

From:                UBS Securities LLC
  Solely as Agent of UBS AG, London Branch
 299 Park Avenue
 New York, NY 10171

 

Re:                             Additional Call Option Transaction

 

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the call option transaction entered into between UBS AG, London Branch (“Dealer”) and  Hawaiian Holdings, Inc.  (“Counterparty”) as of the Trade Date specified below (the “Transaction”).  This letter agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  This Confirmation shall replace any previous agreements and serve as the final documentation for the Transaction.

 

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”) are incorporated into this Confirmation.  In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation shall govern.  Certain defined terms used herein are based on terms that are defined in the Prospectus dated November 19, 2009, as supplemented by the Prospectus Supplement dated March 18, 2011 (as so supplemented, the “Prospectus”) relating to the 5.00% Convertible Senior Notes due 2016 (as originally issued by Counterparty, the “Convertible Notes” and each USD 1,000 principal amount of Convertible Notes, a “Convertible Note”) issued by Counterparty in an aggregate initial principal amount of USD 75,000,000 (as increased by up to an aggregate principal amount of USD 11,250,000 if and to the extent that the Underwriter (as defined herein) exercises its option to purchase additional Convertible Notes pursuant to the Underwriting Agreement (as defined herein)) pursuant to an Indenture to be dated March 23, 2011 (the “Base Indenture”), as supplemented by a Supplemental Indenture thereto to be dated March 23, 2011 (the “Supplemental Indenture,” and the Base Indenture as supplemented by the Supplemental Indenture, the “Indenture”), between Counterparty and U.S. Bank National Association, as trustee (the “Trustee”).  In the event of any inconsistency between the terms defined in the Prospectus, 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 which are also defined herein by reference to the Indenture and (ii) sections of the Indenture that are referred to herein will conform to the descriptions thereof in the Prospectus.  If any such definitions in the Indenture or any such sections of the Indenture differ from the descriptions thereof in the Prospectus, the descriptions thereof in the Prospectus will govern for purposes of this Confirmation.  The parties further acknowledge that the Supplemental Indenture and Base Indenture section numbers used herein are based on the draft of the Supplemental Indenture or Base Indenture, as the case may be, last reviewed by Dealer as of the date of this Confirmation, and if any such section numbers are changed in the Supplemental Indenture or Base Indenture as executed, the parties will amend this Confirmation in good faith to preserve the intent of the parties.  Subject to the foregoing, references to the Base Indenture or Supplemental Indenture herein are references to the Base Indenture or the Supplemental Indenture, as the case may be, as in effect on the date hereof and on the date of its execution, respectively, and if either the Base Indenture or the Supplemental Indenture is amended following such date, any such amendment 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.

 

 

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

 

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

 

	
General Terms.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Trade   Date:
    	
 
    	
March 18,   2011
    
	
 
    	
 
    	
 
    
	
Effective   Date:
    	
 
    	
The   third Exchange Business Day immediately prior to the Premium Payment Date
    
	
 
    	
 
    	
 
    
	
Option   Style:
    	
 
    	
“Modified   American”, as described under “Procedures for Exercise” below
    
	
 
    	
 
    	
 
    
	
Option   Type:
    	
 
    	
Call
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The   common stock of Counterparty, par value USD 0.01 per share (Exchange symbol   “HA”).
    
	
 
    	
 
    	
 
    
	
Number   of Options:
    	
 
    	
11,250.   For the avoidance of doubt, the Number of Options shall be reduced by any   Options exercised by Counterparty. In no event will the Number of Options be   less than zero.
    
	
 
    	
 
    	
 
    
	
Applicable   Percentage:
    	
 
    	
60%
    
	
 
    	
 
    	
 
    
	
Option   Entitlement:
    	
 
    	
A   number equal to the product of the Applicable Percentage and 126.8730
    
	
 
    	
 
    	
 
    
	
Strike   Price:
    	
 
    	
USD   7.8819
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
USD   1,526,369.25
    
	
 
    	
 
    	
 
    
	
Premium   Payment Date:
    	
 
    	
March 23,   2011
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The   NASDAQ Global Market
    
	
 
    	
 
    	
 
    
	
Related   Exchange(s):
    	
 
    	
All   Exchanges; provided that Section 1.26   of the Equity Definitions shall be amended to add the words “United States”   before the word “exchange” in the tenth line of such Section.
    
	
 
    	
 
    	
 
    
	
Excluded   Provisions:
    	
 
    	
Section 9.06(g),   Section 9.09 and Section 9.15 of the Supplemental Indenture.
    

 

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Procedures for Exercise.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Conversion   Date:
    	
 
    	
With   respect to any conversion of a Convertible Note, the date on which the Holder   (as such term is defined in the Indenture) of such Convertible Note satisfies   all of the requirements for conversion thereof as set forth in   Section 9.02(A) of the Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Free   Convertibility Date:
    	
 
    	
November 15,   2015
    
	
 
    	
 
    	
 
    
	
Expiration   Date:
    	
 
    	
March 15,   2016, subject to earlier exercise.
    
	
 
    	
 
    	
 
    
	
Multiple   Exercise:
    	
 
    	
Applicable,   as described under “Automatic Exercise” below.
    
	
 
    	
 
    	
 
    
	
Automatic   Exercise:
    	
 
    	
Notwithstanding   Section 3.4 of the Equity Definitions, on each Conversion Date, a number   of Options equal to (i) the number of Convertible Notes in denominations   of USD 1,000 as to which such Conversion Date has occurred minus (ii) the number of Options that are or are   deemed to be automatically exercised on such Conversion Date under the Base   Call Option Transaction Confirmation letter agreement dated March 18,   2011 between Dealer and Counterparty, shall be deemed to be automatically   exercised; provided that such Options   shall be exercised or deemed exercised only if Counterparty, or the Trustee   on behalf of Counterparty, has provided a Notice of Exercise to Dealer in   accordance with “Notice of Exercise” below.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   the foregoing, in no event shall the number of Options that are exercised or   deemed exercised hereunder exceed the Number of Options.
    
	
 
    	
 
    	
 
    
	
Notice   of Exercise:
    	
 
    	
Notwithstanding   anything to the contrary in the Equity Definitions or under “Automatic   Exercise” above, in order to exercise any Options, Counterparty, or the   Trustee on behalf of Counterparty, must notify Dealer in writing before   5:00 p.m. (New York City time) on the Scheduled Valid Day immediately   preceding the scheduled first day of the Settlement Averaging Period (the “Exercise Notice Deadline”) for the Options being exercised   of (i) the number of such Options, (ii) the scheduled first day of   the Settlement Averaging Period and the scheduled Settlement Date,   (iii) the Relevant Settlement Method for such Options, (iv) if the   Relevant Settlement Method for such Options is Combination Settlement, the   fixed amount of cash per Convertible Note that Counterparty has elected to   deliver to Holders (as such term is defined in the Indenture) of the related   Convertible Notes (the “Specified Cash Amount”)   and (v) the settlement date(s) for delivery of the consideration in   respect of each related Convertible Note, and such notice shall be deemed to   include the information, representations, acknowledgements and agreements   required pursuant to “Settlement Method Election Conditions” below; provided that notwithstanding the foregoing, such notice   (and the related exercise of Options) shall be effective if given after the   Exercise 
    

 

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Notice   Deadline, but prior to 4:00 P.M., New York City time, on the fifth Valid   Day following the Exercise Notice Deadline, in which event the Calculation   Agent shall have the right to adjust the delivery obligation under this   Confirmation as appropriate to reflect the reasonable additional costs   (including, but not limited to, hedging mismatches and market losses) and   reasonable expenses incurred by Dealer in connection with its hedging   activities (including the unwinding of any hedge position) as a result of   Dealer not having received such notice on or prior to the Exercise Notice   Deadline and Dealer’s  obligation to   make any payment or delivery in respect of such exercise shall not be   extinguished; provided further that in   respect of any Options relating to Convertible Notes with a Conversion Date   occurring on or after the Free Convertibility Date, (A) such notice may   be given on or prior to the second Scheduled Valid Day immediately preceding   the Expiration Date and need only specify the information required in clauses   (i) and (v) above, and (B) if the Relevant Settlement Method   for such Options is not Net Share Settlement, Dealer shall have received a   separate notice (the “Notice of Final   Settlement Method”) in respect of all such Convertible Notes   before 5:00 p.m. (New York City time) on or prior to the Free   Convertibility Date specifying the information required in clauses   (iii) and (iv) above, as well as the information, representations,   acknowledgements and agreements deemed to be included in such notice as set   forth in “Settlement Method Election Conditions” below.
    
	
 
    	
 
    	
 
    
	
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 United States national or regional securities exchange or market on   which the Shares are listed or admitted to 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 Valid 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   relating to the Shares.”
    
	
 
    	
 
    	
 
    
	
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 the Settlement Method Election   Conditions have been satisfied and Counterparty, or the Trustee on behalf of   Counterparty, shall have notified Dealer of the Relevant Settlement Method in   the Notice of Exercise or Notice of Final Settlement Method, as applicable,   for such Option.
    

 

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Relevant   Settlement Method:
    	
 
    	
In   respect of any Option, subject to the Settlement Method Election Conditions:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)  if Counterparty elects (or is deemed to   have elected) with respect to a Settlement Method under the Indenture to   settle its conversion obligations in respect of the related Convertible Note   entirely in Shares pursuant to Section 9.02(A)(I) or (C) of   the Supplemental Indenture (together with cash in lieu of fractional Shares)   (such settlement method, “Settlement in Shares”),   or (ii) if Counterparty has elected to settle its conversion obligations   in respect of the related Convertible Note (A) in a combination of cash   and Shares pursuant to Section 9.02(A)(III) of the Supplemental   Indenture with a Specified Cash Amount less than USD 1,000 (such settlement   method, “Low Cash Combination Settlement”),   or (B) in a combination of cash and Shares pursuant to   Section 9.02(A)(III) or (B) of the Supplemental Indenture with   a Specified Cash Amount equal to USD 1,000 (such settlement method, “Par Cash Combination Settlement”), 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 Convertible Note in a   combination of cash and Shares pursuant to Section 9.02(A)(III) of   the Supplemental Indenture with a Specified Cash Amount greater than USD   1,000, 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 Convertible Note entirely in cash pursuant to   Section 9.02(A)(II) of the Supplemental Indenture (such settlement   method, “Settlement in Cash”), then the   Relevant Settlement Method for such Option shall be Cash Settlement.
    
	
 
    	
 
    	
 
    
	
Settlement   Method Election Conditions:
    	
 
    	
For   any Relevant Settlement Method other than Net Share Settlement with a   Specified Cash Amount equal to USD 1,000, the Notice of Exercise or Notice of   Final Settlement Method, as applicable, shall be deemed to contain:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)  a representation that, on the date of such   Notice of Exercise or Notice of Final Settlement Method, as applicable,   Counterparty is not in possession of any material non-public information with   respect to Counterparty or the Shares;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)  a representation that Counterparty is   electing the settlement method for the related Convertible Note and such   Relevant Settlement Method in good faith and not as part of a plan or scheme   to evade the prohibitions of Rule 10b-5 under the Securities Exchange   Act of 1934, as amended (the “Exchange Act”);
    

 

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(iii)   a representation that Counterparty has not entered into or altered any   hedging transaction relating to the Shares corresponding to or offsetting the   Transaction;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)   a representation that Counterparty is not electing the settlement method for   the related Convertible Note and such Relevant Settlement Method 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); and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(v)  an acknowledgment by Counterparty that   (A) any transaction by Dealer following Counterparty’s election of the   settlement method for the related Convertible Note and such Relevant   Settlement Method shall be made at Dealer’s sole discretion and for Dealer’s   own account and (B) Counterparty does not have, and shall not attempt to   exercise, any influence over how, when, whether or at what price to effect   such transactions, including, without limitation, the price paid or received   per Share pursuant to such transactions, or whether such transactions are   made on any securities exchange or privately.
    
	
 
    	
 
    	
 
    
	
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   Valid Day during the Settlement Averaging Period for each such Option, of   (i) the Daily Option Value for such Valid Day, divided by   (ii) the Relevant Price on such Valid Day, divided by   (iii) the number of Valid Days in the Settlement Averaging Period; provided that in no event shall the 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 deliver cash in lieu of any fractional Shares to be delivered with   respect to any Net Share Settlement Share Amount valued at the Relevant Price   for the last Valid Day of the Settlement Averaging Period.
    
	
 
    	
 
    	
 
    
	
Combination   Settlement:
    	
 
    	
If   Combination 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:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)  an amount of cash (the “Combination Settlement Cash Amount”) equal to the sum, for   each Valid 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 
    

 

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(x) the   Applicable Percentage and (y) the Specified Cash Amount minus USD 1,000 and (2) the Daily Option Value, divided by (B) the number of Valid Days in the   Settlement Averaging Period; provided that   if the calculation in clause (A) above results in zero or a negative   number for any Valid Day, the Daily Combination Settlement Cash Amount for   such Valid Day shall be deemed to be zero; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)  a number of Shares (the “Combination Settlement Share Amount”) equal to the sum,   for each Valid Day during the Settlement Averaging Period for such Option, of   a number of Shares for such Valid Day (the “Daily   Combination Settlement Share Amount”) equal to (A) the Daily   Option Value on such Valid Day minus the   Daily Combination Settlement Cash Amount for such Valid Day, divided by (B) the Relevant Price on such Valid Day, divided by (C) the number of Valid Days in the   Settlement Averaging Period; provided that   if the calculation in clause (A) above results in zero or a negative   number for any Valid Day, the Daily Combination Settlement Share Amount for   such Valid 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 Limit   Price on the Settlement Date for such Option, exceed the Applicable Limit for   such Option.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dealer   will deliver cash in lieu of any fractional Shares to be delivered with   respect to any Combination Settlement Share Amount valued at the Relevant   Price for the last Valid 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 Valid Day during the Settlement Averaging Period   for such Option, of (i) the Daily Option Value for such Valid Day, divided by (ii) the number of Valid Days in the   Settlement Averaging Period; provided that   in no event shall the Cash Settlement Amount exceed the Applicable Limit.
    
	
 
    	
 
    	
 
    
	
Daily   Option Value:
    	
 
    	
For   any Valid Day, an amount equal to (i) the Option Entitlement on such   Valid Day, multiplied by (ii) the   Relevant Price on such Valid Day less the Strike Price on such Valid Day; provided that if the calculation contained in clause   (ii) above results in a negative number, the Daily Option Value for such   Valid Day shall be deemed to be zero. In no event will the Daily Option Value   be less than zero.
    

 

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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, delivered to the Holder of the related   Convertible Note upon conversion of such Convertible Note and (B) the   number of Shares, if any, delivered to the Holder of the related Convertible   Note upon conversion of such Convertible Note multiplied   by the Applicable Limit Price, over (ii) USD 1,000.
    
	
 
    	
 
    	
 
    
	
Applicable   Limit Price:
    	
 
    	
The   opening price as displayed under the heading “Op” on Bloomberg   page HA.UQ <equity> (or its equivalent successor if such   page is not available) on the Settlement Date for the applicable Option;   provided that with respect to any   Convertible Note converted on or prior to the business day immediately   preceding March 1, 2016 to which Settlement in Shares applies and with   respect to any Convertible Note converted prior to November 15, 2015 to   which Low Cash Combination Settlement applies, the Applicable Limit Price is   the lesser of the opening price as displayed under the heading “Op” on   Bloomberg page HA.UQ <equity> (or its equivalent successor if such   page is not available) on the Settlement Date for the Option or on the   settlement date for the Convertible Note.
    
	
 
    	
 
    	
 
    
	
Valid   Day:
    	
 
    	
A   day on which (i) trading in the Shares generally occurs and (ii) a   Market Disruption Event has not occurred; provided that   if the Shares are not then listed for trading or quotation on or by any   exchange, bureau or other organization, “Valid Day” means a Business Day.
    
	
 
    	
 
    	
 
    
	
Scheduled   Valid Day:
    	
 
    	
A   day that is scheduled to be a Valid Day on the primary United States national   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   Valid Day” means a Business Day.
    
	
 
    	
 
    	
 
    
	
Business   Day:
    	
 
    	
Each   Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which   banking institutions in New York, NY are authorized or obligated by law or   executive order to close.
    
	
 
    	
 
    	
 
    
	
Relevant   Price:
    	
 
    	
On   any Valid Day, the per Share volume-weighted average price as displayed on   Bloomberg (or any successor service) page HA.UQ <equity> AQR in   respect of the period from 9:30 a.m. to 4:00 p.m., New York City   time, on such Valid Day; or, if such price is not available, the market value   of one Share on such Valid Day, as determined by the Calculation Agent in a   good faith reasonable manner using a volume weighted average method; provided that after the occurrence or effectiveness of an   event described in Section 9.12 of the Supplemental Indenture in which   all holders of Shares receive only cash, the Relevant Price will be the cash   price per Share received by holders of Shares in such event.
    

 

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Settlement   Averaging Period:
    	
 
    	
For   any Option and regardless of the Settlement Method applicable to such Option:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)                if the related Conversion Date occurs prior to the Free Convertibility Date, the 30   consecutive Valid Days commencing on, and including, the third Business Day   following such Conversion Date; provided that   if the Notice of Exercise for such Option specifies that Settlement in Shares   or Low Cash Combination Settlement applies to the related Convertible Note,   the Settlement Averaging Period shall be the 60 consecutive Valid Day period   commencing on, and including, the second Valid Day immediately following such   Conversion Date; or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)             if the related Conversion Date occurs on or following the Free Convertibility Date,  the 30 consecutive Valid Days   commencing on, and including, the 32nd Scheduled Valid Day   immediately prior to the Expiration Date; provided that   if the Notice of Exercise or Notice of Final Settlement Method, as   applicable, for such Option specifies that Settlement in Shares or Low Cash   Combination Settlement applies to the related Convertible Note, the   Settlement Averaging Period shall be the 60 consecutive Valid Days   commencing on, and including, the 62nd Scheduled Valid Day   immediately prior to the Expiration Date.
    
	
 
    	
 
    	
 
    
	
Settlement   Date:
    	
 
    	
For   any Option, the third Business Day immediately following the last Valid Day   of the Settlement Averaging Period for such Option.
    
	
 
    	
 
    	
 
    
	
Settlement   Currency:
    	
 
    	
USD
    
	
 
    	
 
    	
 
    
	
Other   Applicable Provisions:
    	
 
    	
The   provisions of Sections 9.1(c), 9.8, 9.9, 9.11, 9.12 and 10.5 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 Equity Definitions (including, but not limited   to, Section 9.11 thereof), the parties acknowledge that (i) 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”)).
    

 

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3.                                    Additional   Terms applicable to the Transaction.
    
	
 
    	
 
    	
 
    
	
Adjustments   applicable to the Transaction:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Potential   Adjustment Events:
    	
 
    	
Notwithstanding   Section 11.2(e) of the Equity Definitions, a “Potential Adjustment   Event” means an occurrence of any event or condition, as set forth in any   Dilution Adjustment Provision, that would result in an adjustment to the   Conversion Rate (as defined in the Indenture) of the Convertible Notes.
    
	
 
    	
 
    	
 
    
	
Method   of Adjustment:
    	
 
    	
Calculation   Agent Adjustment, which means that, notwithstanding   Section 11.2(c) of the Equity Definitions, upon any Potential   Adjustment Event that results in an adjustment to the Conversion Rate (as   defined in the Indenture) of the Convertible Notes, the Calculation Agent   shall make a corresponding adjustment 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 for the Transaction; provided   that, notwithstanding the foregoing, if   any Potential Adjustment Event occurs during the Settlement Averaging Period   but no adjustment was made to any Convertible Note under the Indenture   because the relevant Holder (as such term is defined in the Indenture) was   deemed to be a record owner of the underlying Shares on the related Conversion   Date, then the Calculation Agent shall make an adjustment, as determined by   it, to the terms hereof in order to account for such Potential Adjustment   Event.
    
	
 
    	
 
    	
 
    
	
Dilution   Adjustment Provisions:
    	
 
    	
Section 9.06(a),   (b), (c), (d), (e) and (h) and Section 9.08 of the   Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Extraordinary Events applicable to the   Transaction:
    
	
 
    	
 
    	
 
    
	
Merger   Events:
    	
 
    	
Applicable;   provided that notwithstanding   Section 12.1(b) of the Equity Definitions, a “Merger Event” means   the occurrence of any event or condition set forth in the definition of   “Merger Event” in Section 9.12 of the Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Tender   Offers:
    	
 
    	
Applicable;   provided that notwithstanding   Section 12.1(d) of the Equity Definitions, a “Tender Offer” means   the occurrence of any event or condition set forth in   Section 9.06(e) of the Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Consequence   of Merger Events /
    	
 
    	
 
    
	
Tender   Offers:
    	
 
    	
Notwithstanding   Section 12.2 and Section 12.3 of the Equity Definitions, upon the   occurrence of a Merger Event or a Tender Offer, the Calculation Agent shall   make a corresponding adjustment in respect of any adjustment under the   Indenture to any one or more of the nature of the Shares (in the case of a   Merger Event), Strike Price, Number of Options, Option Entitlement and any   other variable relevant to the exercise, settlement or payment for the   Transaction; provided, however,   that such 
    

 

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adjustment   shall be made without regard to any adjustment to the Conversion Rate pursuant   to any Excluded Provision that would constitute a Merger Event or Tender   Offer; 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) shares   of an entity or person 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 or   Tender Offer, will not be a corporation or will not be the Issuer following   such Merger Event or Tender Offer, then Cancellation and Payment (Calculation   Agent Determination) shall apply.
    
	
 
    	
 
    	
 
    
	
Nationalization, Insolvency   or Delisting:
    	
 
    	
Cancellation   and Payment (Calculation Agent Determination); provided that, in addition to the provisions of   Section 12.6(a)(iii) of the Equity Definitions, it will also   constitute a Delisting if the Exchange is located in the United States and   the Shares are not immediately re-listed, re-traded or re-quoted on any of   the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ   Global Market (or their respective successors); if the Shares are immediately   re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The   NASDAQ Global Select Market or The NASDAQ Global Market (or their respective   successors), such exchange or quotation system shall thereafter be deemed to   be the Exchange.
    
	
 
    	
 
    	
 
    
	
Additional   Disruption Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Change   in Law:
    	
 
    	
Applicable;   provided that Section 12.9(a)(ii)(X) of   the Equity Definitions is hereby amended by replacing the word “Shares” with   the phrase “Hedge Positions;” provided further   that Section 12.9(a)(ii) of the Equity Definitions is hereby   amended by (i) replacing the phrase “the interpretation” in the third   line thereof with the phrase “or announcement or statement of the formal or   informal interpretation” and (ii) immediately following the word   “Transaction” in clause (X) thereof, adding the phrase “in the manner   contemplated by Hedging Party on the Trade Date.”
    
	
 
    	
 
    	
 
    
	
Failure   to Deliver:
    	
 
    	
Not   Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Disruption:
    	
 
    	
Applicable;   provided that:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i) Section 12.9(a)(v) of   the Equity Definitions is hereby amended by inserting the following two   phrases at the end of such Section:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“For   the avoidance of doubt, the term “equity price risk” shall be deemed to   include, but shall not be limited to, stock price and volatility risk. And,   for the further avoidance of doubt, any such transactions or assets referred   to in phrases (A) or (B) above must be available on commercially   reasonable pricing terms.”; and
    

 

11

 

	
 
    	
 
    	
(ii) Section 12.9(b)(iii) of   the Equity Definitions is hereby amended by inserting in the third line   thereof,  after the words “to terminate   the Transaction”, the words “or a portion of the Transaction affected by such   Hedging Disruption”.
    
	
 
    	
 
    	
 
    
	
Increased   Cost of Hedging:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Party:
    	
 
    	
For   all applicable Additional Disruption Events, Dealer.
    
	
 
    	
 
    	
 
    
	
Determining   Party:
    	
 
    	
For   all applicable Extraordinary Events, Dealer.
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements   and Acknowledgements
    	
 
    	
 
    
	
Regarding   Hedging Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional   Acknowledgments:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
4.                                    Calculation   Agent.
    	
 
    	
Dealer;   provided that all determinations made   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 a prior written request by Counterparty, the Calculation   Agent will provide to Counterparty by email to the email address provided by   Counterparty in such prior 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 Dealer be obligated to share with Counterparty any proprietary   models used by it or any other party.
    
	
 
    	
 
    	
 
    
	
5.                                    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.
    
	
 
    	
 
    
	
 
    	
 
    
	
6.                                    Offices.
    
	
 
    	
 
    
	
(a)
    	
The   Office of Counterparty for the Transaction is:  Inapplicable, Counterparty is not a   Multibranch Party.
    
				

 

12

 

 

	
 
    	
(b)
    	
The   Office of Dealer for the Transaction is: London
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
UBS   AG, London Branch
    
	
 
    	
 
    	
c/o   UBS Securities LLC
    
	
 
    	
 
    	
299   Park Avenue
    
	
 
    	
 
    	
New   York, NY 10171
    
	
 
    	
 
    	
Attention:
    	
Jason Shrednick
    
	
 
    	
 
    	
Telephone   No.:
    	
(212)   821-2361
    
	
 
    	
 
    	
Facsimile   No.:
    	
(212)   882-8014
    
	
 
    	
 
    	
 
    
	
7.
    	
Notices.
    
	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Address   for notices or communications to Counterparty:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Hawaiian   Holdings, Inc.
    
	
 
    	
 
    	
3375   Koapaka Street, Suite G-350
    
	
 
    	
 
    	
Honolulu,   Hawaii 96819
    
	
 
    	
 
    	
Attention:
    	
Treasurer
    
	
 
    	
 
    	
Telephone   No.:
    	
(808)   835-3700
    
	
 
    	
 
    	
Facsimile   No.:
    	
(808)   835-3690
    
	
 
    	
 
    	
 
    
	
 
    	
(b)
    	
Address   for notices or communications to Dealer:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
UBS   AG, London Branch
    
	
 
    	
 
    	
c/o   UBS Securities LLC
    
	
 
    	
 
    	
299   Park Avenue
    
	
 
    	
 
    	
New   York, NY 10171
    
	
 
    	
 
    	
Attention:
    	
Jason Shrednick
    
	
 
    	
 
    	
Telephone   No.:
    	
(212)   821-2361
    
	
 
    	
 
    	
Facsimile   No.:
    	
(212)   882-8014
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
With   a copy to:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address:
    	
Equities   Legal Department
    
	
 
    	
 
    	
 
    	
677   Washington Boulevard
    
	
 
    	
 
    	
 
    	
Stamford,   CT 06901
    
	
 
    	
 
    	
Attention:
    	
Hina   Mehta and Gordon Kiesling
    
	
 
    	
 
    	
Telephone   No.:
    	
(203)   719-0268
    
	
 
    	
 
    	
Facsimile   No.:
    	
(203)   719-0680
    
	
 
    	
 
    	
 
    
	
8.
    	
Representations   and Warranties of Counterparty.
    
	
 
    	
 
    
	
 
    	
Counterparty   hereby represents and warrants to Dealer on the date hereof and on and as of   the Premium Payment Date that:
    
	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Counterparty is duly organized and validly existing and   in good standing under the laws of its jurisdiction of incorporation.
    
	
 
    	
 
    	
 
    
	
 
    	
(b)
    	
Counterparty   has the corporate power and authority to execute and deliver this   Confirmation and to perform its obligations hereunder; and all action   required to be taken for the due and proper authorization, execution and   delivery by it of this Confirmation and the consummation by it of the   transactions contemplated hereby has been duly and validly taken.
    
	
 
    	
 
    	
 
    
	
 
    	
(c)
    	
This Confirmation has been duly authorized by   Counterparty and, when duly executed and delivered in accordance with its   terms by each of the parties hereto, will constitute a valid and legally   binding agreement of Counterparty enforceable against Counterparty in   accordance with its terms, except as enforceability may be limited by   applicable bankruptcy, insolvency or similar laws affecting creditors’  rights   generally or by equitable principles relating to enforceability.
    

 

13

 

	
 
    	
(d)
    	
The   execution, delivery and performance by Counterparty of this Confirmation and   the consummation of the transactions contemplated hereby will not   (i) conflict with or result in a breach or violation of any of the terms   or provisions of, or constitute a default under, or result in the creation or   imposition of any lien, charge or encumbrance upon any property or assets of   Counterparty or any of its subsidiaries pursuant to, any indenture, mortgage,   deed of trust, loan agreement or other agreement or instrument to which   Counterparty or any of its subsidiaries is a party or by which Counterparty   or any of its subsidiaries is bound or to which any of the property or assets   of Counterparty or any of its subsidiaries is subject, (ii) result in   any violation of the provisions of the charter or by-laws or similar   organizational documents of Counterparty or any of its subsidiaries or   (iii) result in the violation of any law or statute or any judgment,   order, rule or regulation of any court or arbitrator or governmental or   regulatory authority applicable to Counterparty or any of its subsidiaries,   except for such conflicts, breaches or violations in clauses (i) and   (iii) that would not have a material adverse effect on Counterparty’s   ability to perform its obligations under this Confirmation (a “Material Adverse Effect”).
    
	
 
    	
 
    	
 
    
	
 
    	
(e)
    	
No   consent, approval, authorization, order, registration or qualification of or   with any court or arbitrator or governmental or regulatory authority is   required for the execution, delivery and performance by Counterparty of this   Confirmation and the consummation of the transactions contemplated hereby for   (i) such consents, approvals, authorizations, orders, registrations or   qualifications (“Consents”) as   may be required under state securities laws or contemplated by this   Confirmation or (ii) where the failure to obtain or make any such   Consents would not reasonably be expected to have a Material Adverse Effect.
    
	
 
    	
 
    	
 
    
	
 
    	
(f)
    	
Counterparty   is not and, after giving effect to the transactions contemplated hereby, will   not be required to register as an “investment company” or an entity   “controlled” by an “investment company” within the meaning of the Investment   Company Act of 1940, as amended, and the rules and regulations of the   Securities and Exchange Commission thereunder.
    
	
 
    	
 
    	
 
    
	
 
    	
(g)
    	
Counterparty   is an “eligible contract participant” (as such term is defined in   Section 1a(12) of the Commodity Exchange Act, as amended, other than a   person that is an eligible contract participant under   Section 1a(12)(C) of the Commodity Exchange Act).
    
	
 
    	
 
    	
 
    
	
 
    	
(h)
    	
Counterparty   and each of its affiliates is not, on the date hereof, in possession of any   material non-public information with respect to Counterparty or the Shares.
    
	
 
    	
 
    	
 
    
	
9.
    	
Other   Provisions.
    
	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Opinions.   Counterparty shall deliver to Dealer an opinion of counsel, dated as of the   Trade Date, due incorporation, existence and good standing of Counterparty in   Delaware, the due authorization, execution and delivery of this Confirmation,   and the absence of conflict of the execution, delivery and performance of   this Confirmation with any material agreement required to be filed as an   exhibit to Counterparty’s Annual Report on Form 10-K and Counterparty’s   constituent documents.
    
	
 
    	
 
    	
 
    
	
 
    	
(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 the Business Day following the date of such repurchase if following such   repurchase, the number of outstanding Shares as determined on such day is   (i) less than 50 million (in the case of the first such notice) or   (ii) thereafter more than 1 million less than the number of Shares   included in the immediately preceding Repurchase Notice. 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   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 
    

 

14

 

	
 
    	
 
    	
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. 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, such consent not to be   unreasonably withheld, 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 a party and indemnity has 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)
    	
Regulation   M. Counterparty is not on the Trade Date engaged in a distribution, as   such term is used in Regulation M under the Securities Exchange Act of 1934,   as amended (the “Exchange Act”),   of any equity or equity-linked securities of Counterparty, other than   (i) a distribution meeting the requirements of the exception set forth   in Rules 101(a), 101(b)(10), 102(a) and 102(b)(7) of   Regulation M (the “Exclusions”).   Counterparty shall not, until the second Scheduled Trading Day immediately   following the Effective Date, engage in any such distribution (subject to the   Exclusions) other than the distribution of the Convertible Notes.
    
	
 
    	
 
    	
 
    
	
 
    	
(d)
    	
No   Manipulation. 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)
    	
Transfer   or Assignment.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
Counterparty   shall have the right to transfer or assign its rights and obligations   hereunder with respect to all, but not less than all, of the Options   hereunder (such Options, the “Transfer Options”);   provided that such transfer or assignment shall be subject to 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 9(b);
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(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);
    

 

15

 

	
 
    	
 
    	
 
    	
(C)
    	
Such   transfer or assignment shall be effected on terms, including any reasonable   undertakings by such third party (including, but not limited to, an   undertaking 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 and   reasonably satisfactory to Dealer;
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(D)
    	
Dealer   will 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 will not   occur as a result of such transfer and assignment;
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(F)
    	
Without   limiting the generality of clause (B), Counterparty shall cause 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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
Dealer   may, without Counterparty’s consent, transfer or assign all or any part of   its rights or obligations under the Transaction at any time to any affiliate   of Dealer (A) that has a rating for its long term, unsecured and   unsubordinated indebtedness that is equal to or better than the best of Dealer’s   credit rating and the credit rating of any guarantor of Dealer’s obligations   hereunder, in each case, at the time of the transfer or assignment, or   (B) 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 any parent of Dealer that has a credit rating that   is equal to or better than the best of Dealer’s credit rating and the credit   rating of any guarantor of Dealer’s obligations hereunder, in each case, at   the time of the transfer or assignment; provided that   any such transfer or assignment shall be subject to the conditions that   (I) following such transfer or assignment, the terms and conditions of   the Agreement as so transferred or assigned (the “Transferred   Agreement”) shall be substantially the same as the terms and   conditions of the Agreement immediately prior to such transfer or assignment,   (II) Counterparty will not be required to pay to the transferee an   amount in respect of an Indemnifiable Tax under   Section 2(d)(i)(4) of the Transferred Agreement greater than the   amount in respect of which Counterparty would have been required to pay to   Dealer under Section 2(d)(i)(4) in the absence of the transfer,   (III) Counterparty will not receive any payment under the Transferred   Agreement from which an amount is required to be withheld or deducted for or   on account of a Tax with respect to which no additional amount is required to   be paid by the transferee under Section 2(d)(i)(4) of the Transferred   Agreement (other than by reason of Section 2(d)(i)(4)(A) or   (B) thereof), (IV) neither an Event of Default with respect to   which Dealer is the Defaulting Party nor a Termination Event with respect to   which Dealer is the sole Affected Party shall have occurred and be continuing   at the time of the transfer, and neither an Event of Default nor a   Termination Event shall occur as a result of the transfer, (V) each of Dealer   and the transferee is a dealer in “notional principal contracts” within the   meaning of Section 1.446-3(c)(4)(iii) of the U.S. Treasury   Regulations and in other derivatives, and (VI) Dealer has used its good   faith efforts to provide prior notice to Counterparty of such transfer and   the proposed date of such transfer, and Dealer shall 
    

 

16

 

	
 
    	
 
    	
 
    	
provide   written notice to Counterparty reasonably promptly following such transfer.   In addition, if at any time (A) the Section 16 Percentage exceeds   7.5%, (B) the Option 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 may, without Counterparty’s consent,   transfer or assign all or any part of its rights or obligations under the   Transaction to any third party who is a dealer in “notional principal   contracts” within the meaning of Section 1.446-3(c)(4)(iii) of the   U.S. Treasury Regulations and in other derivatives, and with a rating for its   long term, unsecured and unsubordinated indebtedness equal to or better than   the lesser of (x) the credit rating of Dealer at the time of the   transfer and (y) 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 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. If at any time an Excess Ownership Position exists,   Dealer may designate any Exchange Business Day as an Early Termination Date   with respect to all or a portion of the Transaction (the “Terminated Portion”) such that following   such termination no Excess Ownership Position exists; provided   that Dealer may only designate an Early Termination Date pursuant to this   Section 9(e)(i) if Dealer has used its good faith efforts to notify   Counterparty of such Excess Ownership Position, and Dealer is unable, acting   in good faith and after using its commercially reasonable efforts, to effect   a transfer or assignment of Options to a third party in accordance with this   Section 9(e)(i) on pricing terms reasonably acceptable to Dealer   and within a time period reasonably acceptable Dealer such that no Excess   Ownership Position exists. In the event that Dealer so designates an Early   Termination Date with respect to a Terminated Portion, a payment shall be   made pursuant to Section 6 of the Agreement as if (1) an Early   Termination Date had been designated in respect of a Transaction having terms   identical to the Transaction and a Number of Options equal to the number of   Options 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 9(k) 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 “Option Equity Percentage”   as of any day is the fraction, expressed as a percentage, (A) the   numerator of which is the sum of (1) the product of the Number of   Options and the Option Entitlement and (2) the aggregate number of   Shares underlying any other call option transaction sold by Dealer to   Counterparty, 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 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, minus (B) 1% of the number of   Shares outstanding.
    

 

17

 

	
 
    	
 
    	
(iii)
    	
Notwithstanding   any other provision in this Confirmation to the contrary requiring or   allowing Dealer to purchase, sell, receive or deliver any Shares or other   securities, or make or receive any payment in cash, to or from Counterparty,   Dealer may designate any of its affiliates to purchase, sell, receive or   deliver such Shares or other securities, or to make or receive such payment   in cash, and otherwise to perform Dealer’s obligations in respect of the   Transaction and any such designee may assume such obligations; provided that Dealer shall be discharged of its   obligations to Counterparty only to the extent of any such performance.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(f)
    	
Staggered   Settlement.  If upon   advice of counsel with respect to applicable legal and regulatory requirements,   including any requirements relating to Dealer’s hedging activities hereunder,   Dealer 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 the Settlement Date for the Transaction, Dealer may,   by notice to Counterparty on or prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares on   two or more dates (each, a “Staggered Settlement   Date”) as follows:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
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;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
the   aggregate number of Shares that Dealer will deliver to Counterparty hereunder   on all such Staggered Settlement Dates will equal the number of Shares that   Dealer would otherwise be required to deliver on such Nominal Settlement   Date; and
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
if   the Net Share Settlement terms set forth above were to apply on the Nominal   Settlement Date, then the Net Share Settlement terms will apply on each   Staggered Settlement Date, except that the Net Shares will be allocated among   such Staggered Settlement Dates as specified by Dealer in the notice referred   to in clause (i) above.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(g)
    	
Matters   Relating to Agent.  UBS Securities LLC shall act as “agent” (the “Agent”) for Dealer within the meaning of Rule 15a-6   under the Exchange Act in connection with this Transaction. Dealer notifies   Counterparty that (i) the Agent acts solely as agent on a disclosed   basis with respect to the transactions contemplated hereunder, and   (ii) the Agent has no obligation, by guaranty, endorsement or otherwise,   with respect to the obligations of Dealer hereunder, either with respect to   the delivery of cash or Shares, either at the beginning or the end of the transactions   contemplated hereby. Each of Dealer and Counterparty acknowledges and agrees   to look solely to the other for performance hereunder, and not to the Agent.
    
	
 
    	
 
    	
 
    
	
 
    	
(h)
    	
Additional   Termination Events. Notwithstanding anything to the contrary   in this Confirmation:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
If   an event of default with respect to Counterparty occurs under the terms of   the Convertible Notes as set forth in Section 5.1 of the Base Indenture   or Section 6.01 of the Supplemental Indenture and results in the   Convertible Notes becoming due and payable pursuant to the terms of the   Indenture before they would otherwise have been due and payable, then the   occurrence of such event shall constitute an Additional Termination Event   applicable to the Transaction and, with respect to such Additional   Termination Event, (A) Counterparty shall be deemed to be the sole   Affected Party, (B) the Transaction shall be the sole Affected   Transaction and (C) Dealer shall be the party entitled to designate an   Early Termination Date pursuant to Section 6(b) of the Agreement.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
The   receipt by Dealer from Counterparty, within the applicable time period set   forth under “Notice of Exercise” above, of any Notice of Exercise in respect   of Options that relates to Convertible Notes as to which additional Shares   would be added to the 
    

 

18

 

	
 
    	
 
    	
 
    	
Conversion   Rate pursuant to Section 9.15 of the Supplemental Indenture in   connection with a “Fundamental Change” (as defined in the Supplemental   Indenture) shall constitute an Additional Termination Event as provided in   this Section 9(h)(ii). Upon receipt of any such Notice of Exercise,   Dealer shall designate an Exchange Business Day following such Additional   Termination Event (which Exchange Business Day shall be on or as promptly as   reasonably practicable after the related settlement date for such Convertible   Notes) as an Early Termination Date with respect to the portion of this   Transaction corresponding to a number of Options (the “Make-Whole   Conversion Options”) equal to the lesser of (A) the number of   such Options specified in such Notice of Exercise 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   Make-Whole Conversion Options. Any payment hereunder with respect to such   termination (the “Make-Whole Unwind   Payment”) shall be calculated pursuant to Section 6 of the   Agreement as if (1) an Early Termination Date had been designated in   respect of a Transaction having terms identical to this Transaction and a   Number of Options equal to the number of Make-Whole Conversion 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 (and, for the avoidance of   doubt, in determining the amount payable pursuant to Section 6 of the   Agreement, the Calculation Agent shall not take into account any adjustments   to the Option Entitlement that result from corresponding adjustments to the   Conversion Rate pursuant to Section 9.15 of the Supplemental Indenture)   and shall take into account the time value of this Transaction with respect   to the Expiration Date; provided that   the amount of cash deliverable in respect of such early termination by Dealer   to Counterparty shall not be greater than the product of (x) the   Applicable Percentage and (y) the excess of (I) (1) the number   of Make-Whole Conversion Options multiplied by   (2) the Conversion Rate (after taking into account any applicable   adjustments to the Conversion Rate pursuant to Section 9.15 of the   Supplemental Indenture) multiplied by (3) a price per Share determined   by the Calculation Agent over (II) the aggregate principal amount of   such Convertible Notes, as determined by the Calculation Agent in a   commercially reasonable manner. Counterparty may irrevocably elect, if so   designated in its Notice of Exercise to Dealer as set forth above, to receive   the Make-Whole Unwind Payment in Shares, in which case, in lieu of making   such Make-Whole Unwind Payment as set forth above, Dealer shall deliver to   Counterparty, within a commercially reasonable period of time after such   designation as determined by Dealer (taking into account existing liquidity conditions   and Dealer’s hedging and hedge unwind activity or settlement activity in   connection with such delivery) a number of Shares equal to such Make-Whole   Unwind Payment divided by a price per Share determined by the Calculation   Agent in good faith and in a commercially reasonable manner.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(i)
    	
Amendments   to Equity Definitions.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
Section 12.6(a)(ii) of the Equity Definitions is hereby amended   by (1) deleting from the fourth line thereof the word “or” after the   word “official” and inserting a comma therefor, and (2) deleting the   semi-colon at the end of subsection (B) thereof and inserting the   following words therefor “or (C) at Dealer’s option, the occurrence of   any of the events specified in Section 5(a)(vii)(1) through   (9) of the ISDA Master Agreement with respect to Counterparty.”
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
Section 12.9(b)(i) of the Equity Definitions is hereby amended   by (1) replacing “either party may elect” with “Dealer may elect” and   (2) replacing “notice to the other party” with “notice to Counterparty”   in the first sentence of such section.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(j)
    	
No   Setoff. Neither party shall have   the right to set off any obligation that it may have to the other party under   the Transaction against any obligation such other party may have to it,   whether arising under the Agreement, this Confirmation or any other agreement   between the parties hereto, by operation of law or otherwise.
    

 

19

 

	
 
    	
(k)
    	
Alternative   Calculations and Payment on Early Termination and on Certain Extraordinary   Events. If in respect of the Transaction, an amount is   payable by Dealer to Counterparty (i) pursuant to Section 12.7 or   Section 12.9 of the Equity Definitions or (ii) pursuant to   Section 6(d)(ii) of the Agreement (any such amount, a “Payment Obligation”), Counterparty may request Dealer to   satisfy the Payment Obligation by the Share Termination Alternative (as   defined below) (except that Counterparty shall not have the right to make   such an election in the event of (I) a Nationalization, Insolvency,   Merger Event or Tender Offer, in each case, in which the consideration to be   paid to holders of Shares consists solely of cash, (II) a Merger Event   or Tender Offer that is within Counterparty’s control, or (III) an Event   of Default in which Counterparty is the Defaulting Party or a Termination   Event in which Counterparty is the Affected Party, other than an Event of   Default of the type described in Section 5(a)(iii), (v), (vi),   (vii) or (viii) of the Agreement or a Termination Event of the type   described in Section 5(b) of the Agreement in each case that   resulted from an event or events outside Counterparty’s control) and shall   give irrevocable telephonic notice to Dealer, confirmed in writing within one   Scheduled Trading Day, no later than 12:00 p.m. (New York City time) on   the Merger Date, the Tender Offer Date, the Announcement Date (in the case of   Nationalization, Insolvency or Delisting), the Early Termination Date or   date of cancellation, as applicable; provided that   if Counterparty does not validly request Dealer to satisfy the Payment   Obligation by the Share Termination Alternative, Dealer shall have the right,   in its sole discretion, to satisfy its Payment Obligation by the Share   Termination Alternative, notwithstanding Counterparty’s election to the   contrary.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Share   Termination Alternative:
    	
If   the Share Termination Alternative is applicable in respect of any Payment   Obligation, Dealer shall deliver to Counterparty the Share Termination   Delivery Property on, or within a commercially reasonable period of time   after, the date when the 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 Agreement, as applicable (the   “Share Termination Payment Date”), in   satisfaction of the 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.
    

 

20

 

	
 
    	
 
    	
Share   Termination Delivery Unit:
    	
One   Share or, if a Merger Event has occurred and a corresponding adjustment to   the Transaction has been made, 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 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, 9.11, 9.12 and 10.5 (as modified above) of the Equity Definitions will   be applicable, except that all references in such provisions to   “Physically-settled” shall be read as references to “Share Termination   Settled” and all references to “Shares” shall be read as references to “Share   Termination Delivery Units”. “Share Termination Settled” in relation to the   Transaction means that the Share Termination Alternative is applicable to the   Transaction.
    
	
 
    	
 
    	
 
    
	
 
    	
(l)
    	
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.
    
	
 
    	
 
    	
 
    
	
 
    	
(m)
    	
Registration.  Counterparty hereby agrees that if, in the   good faith reasonable judgment of Dealer, based on the advice of legal   counsel, the Shares (“Hedge Shares”)   acquired by Dealer for the purpose of hedging its obligations pursuant to the   Transaction cannot be sold in the public market by Dealer without   registration under the   Securities Act, Counterparty shall, at its election, either   (i) in order to allow Dealer to sell the Hedge Shares in a registered   offering, make available to Dealer an effective registration statement under   the Securities Act and enter into an agreement, in customary form and in   substance reasonably satisfactory to Dealer, substantially in the form of an   underwriting agreement for a registered secondary offering of equity   securities of companies comparable in size, maturity and line of business; provided, however,   that if Dealer, in its sole reasonable discretion, is not satisfied with   access to due diligence materials, the results of its due diligence   investigation, or the procedures and documentation for the registered   offering referred to above, then clause (ii) or clause (iii) of   this paragraph 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   companies comparable in size, maturity and line of business (in which case,   the Calculation Agent shall make any reasonable adjustments in good faith to   the terms of the Transaction that are necessary, in its reasonable judgment,   to compensate Dealer for any 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 Relevant Price on   such Exchange Business Days, and in the amounts, requested by Dealer.
    

 

21

 

	
 
    	
(n)
    	
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.
    
	
 
    	
 
    	
 
    
	
 
    	
(o)
    	
Right   to Extend.  Dealer   may postpone or add, in whole or in part, any Valid Day or Valid 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 Options hereunder, if   Dealer determines, in its commercially reasonable judgment, that such action   is reasonably necessary or appropriate to preserve Dealer’s hedging or hedge   unwind activity hereunder in light of existing liquidity conditions or to   enable Dealer to effect purchases of Shares in connection with its 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 with related policies and procedures applicable to Dealer; provided that in no event shall Dealer have the right to   extend the Settlement Averaging Period more than 20 Valid Days.
    
	
 
    	
 
    	
 
    
	
 
    	
(p)
    	
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 of   common stockholders of Counterparty in any United States 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.
    
	
 
    	
 
    	
 
    
	
 
    	
(q)
    	
Securities   Contract; Swap Agreement.  The parties hereto intend for (i) the   Transaction to be a “securities contract” and a “swap agreement” as defined   in the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the parties hereto to be entitled   to the protections afforded by, among other Sections, Sections 362(b)(6),   362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code, (ii) a   party’s right to liquidate the Transaction and to exercise any other remedies   upon the occurrence of any Event of Default under the Agreement with respect   to the other party to constitute a “contractual right” as described in the   Bankruptcy Code, and (iii) each payment and delivery of cash, securities   or other property hereunder to constitute a “margin payment” or “settlement   payment” and a “transfer” as defined in the Bankruptcy Code.
    
	
 
    	
 
    	
 
    
	
 
    	
(r)
    	
Notice of Certain Other Events. Counterparty covenants and agrees that:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
promptly   following the public announcement of the results of any election by the   holders of Shares with respect to the consideration due upon consummation of   any consolidation, merger and binding share exchange to which Counterparty is   a party, or any sale of all or substantially all of Counterparty’s assets, in   each case pursuant to which the Shares will be converted into cash,   securities or other property, Counterparty shall give Dealer written notice   of the types and amounts of consideration that holders of Shares have elected   to receive upon consummation of such transaction or event (the date of such   notification, the “Consideration   Notification Date”); provided that   in no event shall the Consideration Notification Date be later than the date   on which such transaction or event is consummated; and
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
promptly   following any adjustment to the Convertible Notes in connection with any   Potential Adjustment Event, Merger Event or Tender Offer, Counterparty shall   give Dealer written notice of the details of such adjustment.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(s)
    	
Wall Street Transparency and Accountability Act.  In connection with   Section 739 of the Wall Street Transparency and Accountability Act of   2010 (“WSTAA”), the parties hereby agree   that neither the enactment of WSTAA or any regulation under the WSTAA, nor   any requirement under WSTAA or an amendment made by WSTAA, shall limit or   otherwise impair either party’s otherwise applicable rights to terminate,   renegotiate, modify, amend or supplement this Confirmation or the Agreement,   as applicable, arising from a termination event, force majeure, 
    

 

22

 

	
 
    	
 
    	
illegality, increased costs, regulatory change or   similar event under this Confirmation, the Equity Definitions incorporated   herein, or the Agreement (including, but not limited to, rights arising from   Change in Law, Hedging Disruption, Increased Cost of Hedging, an Excess   Ownership Position, or Illegality (as defined in the Agreement)).
    
	
 
    	
 
    	
 
    
	
 
    	
(t)
    	
Early Unwind. In the event   the sale of the “Additional Notes” (as defined in the Underwriting Agreement)   is not consummated with the Underwriter for any reason by 5:00 p.m. (New   York City time) on the Premium Payment Date, or such later date as agreed   upon by the parties (the Premium Payment Date or such later date, the “Early   Unwind Date”),  the   Transaction shall automatically terminate (the “Early Unwind”)  on the Early Unwind Date and   (i) the Transaction and all of the respective rights and obligations of   Dealer and 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; provided that   Counterparty shall purchase from Dealer on the Early Unwind Date all Shares   purchased by Dealer or one or more of its affiliates in connection with the   Transaction at the then prevailing market price.  Each of Dealer and Counterparty represent   and acknowledge to the other that, subject to the proviso included in this   Section 9(t), upon an Early Unwind, all obligations with respect to the   Transaction shall be deemed fully and finally discharged.
    
	
 
    	
 
    	
 
    
	
 
    	
(u)
    	
Payment   by Counterparty. In the event that (i) an Early   Termination Date occurs or is designated with respect to the Transaction as a   result of a Termination Event or an Event of Default (other than an Event of   Default arising under Section 5(a)(ii) 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.
    

 

23

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by signing and returning this Confirmation.

 

Yours faithfully,

 

 

	
 
    	
 
    	
 
    	
UBS AG, LONDON BRANCH
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   David Kelly
    
	
 
    	
 
    	
 
    	
Name:
    	
David   Kelly
    
	
 
    	
 
    	
 
    	
Title:
    	
Managing   Director and Counsel
    
	
 
    	
 
    	
 
    	
 
    	
Region   Americas Legal
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   Hina Mehta
    
	
 
    	
 
    	
 
    	
Name:
    	
Hina   Mehta
    
	
 
    	
 
    	
 
    	
Title:
    	
Executive   Director and Counsel
    
	
 
    	
 
    	
 
    	
 
    	
Region   Americas Legal
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
UBS SECURITIES LLC, 
    
	
 
    	
 
    	
 
    	
as agent for UBS AG, London Branch
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   Jason Shrednick
    
	
 
    	
 
    	
 
    	
Name:
    	
Jason   Shrednick
    
	
 
    	
 
    	
 
    	
Title:
    	
Executive   Director
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   Jennifer Van Nest
    
	
 
    	
 
    	
 
    	
Name:
    	
Jennifer   Van Nest
    
	
 
    	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Accepted and confirmed as of the Trade Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
HAWAIIAN HOLDINGS, INC.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Peter R. Ingram
    	
 
    	
 
    	
 
    
	
Name:
    	
Peter   R. Ingram
    	
 
    	
 
    	
 
    
	
Title:
    	
Executive   Vice President, Chief Financial Officer and TreasurerExhibit 10.2

 

 

EXECUTION VERSION

 

	
 
    	
March 18,   2011
    

 

To:                          Hawaiian Holdings, Inc.
 3375 Koapaka Street, Suite G-350
 Honolulu, Hawaii 96819

 

From:                JPMorgan Chase Bank, National Association
  P.O. Box 161
  60 Victoria Embankment
  London EC4Y 0JP
  England

 

Re:                             Additional Call Option Transaction

 

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the call option transaction entered into between JPMorgan Chase Bank, National Association (“Dealer”) and  Hawaiian Holdings, Inc.  (“Counterparty”) as of the Trade Date specified below (the “Transaction”).  This letter agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  This Confirmation shall replace any previous agreements and serve as the final documentation for the Transaction.

 

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”) are incorporated into this Confirmation.  In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation shall govern.  Certain defined terms used herein are based on terms that are defined in the Prospectus dated November 19, 2009, as supplemented by the Prospectus Supplement dated March 18, 2011 (as so supplemented, the “Prospectus”) relating to the 5.00% Convertible Senior Notes due 2016 (as originally issued by Counterparty, the “Convertible Notes” and each USD 1,000 principal amount of Convertible Notes, a “Convertible Note”) issued by Counterparty in an aggregate initial principal amount of USD 75,000,000 (as increased by up to an aggregate principal amount of USD 11,250,000 if and to the extent that the Underwriter (as defined herein) exercises its option to purchase additional Convertible Notes pursuant to the Underwriting Agreement (as defined herein)) pursuant to an Indenture to be dated March 23, 2011 (the “Base Indenture”), as supplemented by a Supplemental Indenture thereto to be dated March 23, 2011 (the “Supplemental Indenture,” and the Base Indenture as supplemented by the Supplemental Indenture, the “Indenture”), between Counterparty and U.S. Bank National Association, as trustee (the “Trustee”).  In the event of any inconsistency between the terms defined in the Prospectus, 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 which are also defined herein by reference to the Indenture and (ii) sections of the Indenture that are referred to herein will conform to the descriptions thereof in the Prospectus.  If any such definitions in the Indenture or any such sections of the Indenture differ from the descriptions thereof in the Prospectus, the descriptions thereof in the Prospectus will govern for purposes of this Confirmation.  The parties further acknowledge that the Supplemental Indenture and Base Indenture section numbers used herein are based on the draft of the Supplemental Indenture or Base Indenture, as the case may be, last reviewed by Dealer as of the date of this Confirmation, and if any such section numbers are changed in the Supplemental Indenture or Base Indenture as executed, the parties will amend this Confirmation in good faith to preserve the intent of the parties.  Subject to the foregoing, references to the Base Indenture or Supplemental Indenture herein are references to the Base Indenture or the Supplemental Indenture, as the case may be, as in effect on the date hereof and on the date of its execution, respectively, and if either the Base Indenture or the Supplemental Indenture is amended following such date, any such amendment will be disregarded for purposes of this Confirmation unless the parties agree otherwise in writing.

 

JPMorgan Chase Bank, National Association 
 Organised under the laws of the United States as a National Banking Association
 Main Office 1111 Polaris Parkway, Columbus, Ohio 43271
 Registered as a branch in England & Wales branch No. BR000746
 Registered Branch Office 125 London Wall, London EC2Y 5AJ
 Authorised and regulated by the Financial Services Authority

 

 

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

 

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

 

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

 

	
General Terms.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Trade   Date:
    	
 
    	
March 18,   2011
    
	
 
    	
 
    	
 
    
	
Effective   Date:
    	
 
    	
The   third Exchange Business Day immediately prior to the Premium Payment Date
    
	
 
    	
 
    	
 
    
	
Option   Style:
    	
 
    	
“Modified   American”, as described under “Procedures for Exercise” below
    
	
 
    	
 
    	
 
    
	
Option   Type:
    	
 
    	
Call
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The   common stock of Counterparty, par value USD 0.01 per share (Exchange symbol   “HA”).
    
	
 
    	
 
    	
 
    
	
Number   of Options:
    	
 
    	
11,250.   For the avoidance of doubt, the Number of Options shall be reduced by any   Options exercised by Counterparty. In no event will the Number of Options be   less than zero.
    
	
 
    	
 
    	
 
    
	
Applicable   Percentage:
    	
 
    	
40%
    
	
 
    	
 
    	
 
    
	
Option   Entitlement:
    	
 
    	
A   number equal to the product of the Applicable Percentage and 126.8730
    
	
 
    	
 
    	
 
    
	
Strike   Price:
    	
 
    	
USD   7.8819
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
USD   1,017,579.48
    
	
 
    	
 
    	
 
    
	
Premium   Payment Date:
    	
 
    	
March 23,   2011
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The   NASDAQ Global Market
    
	
 
    	
 
    	
 
    
	
Related   Exchange(s):
    	
 
    	
All   Exchanges; provided that Section 1.26   of the Equity Definitions shall be amended to add the words “United States”   before the word “exchange” in the tenth line of such Section.
    
	
 
    	
 
    	
 
    
	
Excluded   Provisions:
    	
 
    	
Section 9.06(g),   Section 9.09 and Section 9.15 of the Supplemental Indenture.
    

 

2

 

	
Procedures for Exercise.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Conversion   Date:
    	
 
    	
With   respect to any conversion of a Convertible Note, the date on which the Holder   (as such term is defined in the Indenture) of such Convertible Note satisfies   all of the requirements for conversion thereof as set forth in   Section 9.02(A) of the Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Free   Convertibility Date:
    	
 
    	
November 15,   2015
    
	
 
    	
 
    	
 
    
	
Expiration   Date:
    	
 
    	
March 15,   2016, subject to earlier exercise.
    
	
 
    	
 
    	
 
    
	
Multiple   Exercise:
    	
 
    	
Applicable,   as described under “Automatic Exercise” below.
    
	
 
    	
 
    	
 
    
	
Automatic   Exercise:
    	
 
    	
Notwithstanding   Section 3.4 of the Equity Definitions, on each Conversion Date, a number   of Options equal to (i) the number of Convertible Notes in denominations   of USD 1,000 as to which such Conversion Date has occurred minus (ii) the number of Options that are or are   deemed to be automatically exercised on such Conversion Date under the Base   Call Option Transaction Confirmation letter agreement dated March 18,   2011 between Dealer and Counterparty, shall be deemed to be automatically   exercised; provided that such Options   shall be exercised or deemed exercised only if Counterparty, or the Trustee   on behalf of Counterparty, has provided a Notice of Exercise to Dealer in   accordance with “Notice of Exercise” below.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   the foregoing, in no event shall the number of Options that are exercised or   deemed exercised hereunder exceed the Number of Options.
    
	
 
    	
 
    	
 
    
	
Notice   of Exercise:
    	
 
    	
Notwithstanding   anything to the contrary in the Equity Definitions or under “Automatic   Exercise” above, in order to exercise any Options, Counterparty, or the   Trustee on behalf of Counterparty, must notify Dealer in writing before   5:00 p.m. (New York City time) on the Scheduled Valid Day immediately   preceding the scheduled first day of the Settlement Averaging Period (the “Exercise Notice Deadline”) for the Options being exercised   of (i) the number of such Options, (ii) the scheduled first day of   the Settlement Averaging Period and the scheduled Settlement Date,   (iii) the Relevant Settlement Method for such Options, (iv) if the   Relevant Settlement Method for such Options is Combination Settlement, the   fixed amount of cash per Convertible Note that Counterparty has elected to   deliver to Holders (as such term is defined in the Indenture) of the related   Convertible Notes (the “Specified Cash Amount”)   and (v) the settlement date(s) for delivery of the consideration in   respect of each related Convertible Note, and such notice shall be deemed to   include the information, representations, acknowledgements and agreements   required pursuant to “Settlement Method Election Conditions” below; provided that notwithstanding the 
    

 

3

 

	
 
    	
 
    	
foregoing,   such notice (and the related exercise of Options) shall be effective if given   after the Exercise Notice Deadline, but prior to 4:00 P.M., New York   City time, on the fifth Valid Day following the Exercise Notice Deadline, in   which event the Calculation Agent shall have the right to adjust the delivery   obligation under this Confirmation as appropriate to reflect the reasonable   additional costs (including, but not limited to, hedging mismatches and   market losses) and reasonable expenses incurred by Dealer in connection with   its hedging activities (including the unwinding of any hedge position) as a   result of Dealer not having received such notice on or prior to the Exercise   Notice Deadline and Dealer’s  obligation to make any payment or delivery in   respect of such exercise shall not be extinguished; provided   further that in respect of any Options relating to Convertible   Notes with a Conversion Date occurring on or after the Free Convertibility   Date, (A) such notice may be given on or prior to the second Scheduled   Valid Day immediately preceding the Expiration Date and need only specify the   information required in clauses (i) and (v) above, and (B) if   the Relevant Settlement Method for such Options is not Net Share Settlement,   Dealer shall have received a separate notice (the “Notice of   Final Settlement Method”) in respect of all such Convertible Notes   before 5:00 p.m. (New York City time) on or prior to the Free   Convertibility Date specifying the information required in clauses   (iii) and (iv) above, as well as the information, representations,   acknowledgements and agreements deemed to be included in such notice as set   forth in “Settlement Method Election Conditions” below.
    
	
 
    	
 
    	
 
    
	
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 United States national or regional securities exchange or market on   which the Shares are listed or admitted to 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 Valid 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   relating to the Shares.”
    
	
 
    	
 
    	
 
    
	
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 the Settlement Method Election   Conditions have been satisfied and Counterparty, or the 
    

 

4

 

	
 
    	
 
    	
Trustee   on behalf of Counterparty, shall have notified Dealer of the Relevant   Settlement Method in the Notice of Exercise or Notice of Final Settlement   Method, as applicable, for such Option.
    
	
 
    	
 
    	
 
    
	
Relevant   Settlement Method:
    	
 
    	
In   respect of any Option, subject to the Settlement Method Election Conditions:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)  if Counterparty elects (or is deemed to   have elected) with respect to a Settlement Method under the Indenture to   settle its conversion obligations in respect of the related Convertible Note   entirely in Shares pursuant to Section 9.02(A)(I) or (C) of   the Supplemental Indenture (together with cash in lieu of fractional Shares)   (such settlement method, “Settlement in Shares”),   or (ii) if Counterparty has elected to settle its conversion obligations   in respect of the related Convertible Note (A) in a combination of cash   and Shares pursuant to Section 9.02(A)(III) of the Supplemental   Indenture with a Specified Cash Amount less than USD 1,000 (such settlement   method, “Low Cash Combination Settlement”),   or (B) in a combination of cash and Shares pursuant to   Section 9.02(A)(III) or (B) of the Supplemental Indenture with   a Specified Cash Amount equal to USD 1,000 (such settlement method, “Par Cash Combination Settlement”), 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 Convertible Note in a   combination of cash and Shares pursuant to Section 9.02(A)(III) of   the Supplemental Indenture with a Specified Cash Amount greater than USD   1,000, 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 Convertible Note entirely in cash pursuant to   Section 9.02(A)(II) of the Supplemental Indenture (such settlement   method, “Settlement in Cash”), then the   Relevant Settlement Method for such Option shall be Cash Settlement.
    
	
 
    	
 
    	
 
    
	
Settlement   Method Election Conditions:
    	
 
    	
For   any Relevant Settlement Method other than Net Share Settlement with a   Specified Cash Amount equal to USD 1,000, the Notice of Exercise or Notice of   Final Settlement Method, as applicable, shall be deemed to contain:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)  a representation that, on the date of such   Notice of Exercise or Notice of Final Settlement Method, as applicable,   Counterparty is not in possession of any material non-public information with   respect to Counterparty or the Shares;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)  a representation that Counterparty is   electing the settlement method for the related Convertible Note and 
    

 

5

 

	
 
    	
 
    	
such   Relevant Settlement Method in good faith and not as part of a plan or scheme   to evade the prohibitions of Rule 10b-5 under the Securities Exchange   Act of 1934, as amended (the “Exchange Act”);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)   a representation that Counterparty has not entered into or altered any   hedging transaction relating to the Shares corresponding to or offsetting the   Transaction;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)   a representation that Counterparty is not electing the settlement method for   the related Convertible Note and such Relevant Settlement Method 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); and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(v)    an acknowledgment by Counterparty that   (A) any transaction by Dealer following Counterparty’s election of the   settlement method for the related Convertible Note and such Relevant   Settlement Method shall be made at Dealer’s sole discretion and for Dealer’s   own account and (B) Counterparty does not have, and shall not attempt to   exercise, any influence over how, when, whether or at what price to effect   such transactions, including, without limitation, the price paid or received   per Share pursuant to such transactions, or whether such transactions are   made on any securities exchange or privately.
    
	
 
    	
 
    	
 
    
	
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   Valid Day during the Settlement Averaging Period for each such Option, of   (i) the Daily Option Value for such Valid Day, divided by   (ii) the Relevant Price on such Valid Day, divided by   (iii) the number of Valid Days in the Settlement Averaging Period; provided that in no event shall the 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 deliver cash in lieu of any fractional Shares to be delivered with   respect to any Net Share Settlement Share Amount valued at the Relevant Price   for the last Valid Day of the Settlement Averaging Period.
    
	
 
    	
 
    	
 
    
	
Combination   Settlement:
    	
 
    	
If   Combination 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:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)  an amount of cash (the “Combination Settlement Cash Amount”) equal to the sum, for   each Valid Day during the Settlement Averaging Period for such Option, 
    

 

6

 

	
 
    	
 
    	
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 Cash   Amount minus USD 1,000 and (2) the Daily   Option Value, divided by (B) the number   of Valid Days in the Settlement Averaging Period; provided   that if the calculation in clause (A) above results in zero or a   negative number for any Valid Day, the Daily Combination Settlement Cash   Amount for such Valid Day shall be deemed to be zero; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)  a number of Shares (the “Combination Settlement Share Amount”) equal to the sum,   for each Valid Day during the Settlement Averaging Period for such Option, of   a number of Shares for such Valid Day (the “Daily   Combination Settlement Share Amount”) equal to (A) the Daily   Option Value on such Valid Day minus the   Daily Combination Settlement Cash Amount for such Valid Day, divided by (B) the Relevant Price on such Valid Day, divided by (C) the number of Valid Days in the   Settlement Averaging Period; provided that   if the calculation in clause (A) above results in zero or a negative   number for any Valid Day, the Daily Combination Settlement Share Amount for   such Valid 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 Limit   Price on the Settlement Date for such Option, exceed the Applicable Limit for   such Option.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dealer   will deliver cash in lieu of any fractional Shares to be delivered with   respect to any Combination Settlement Share Amount valued at the Relevant   Price for the last Valid 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 Valid Day during the Settlement Averaging Period   for such Option, of (i) the Daily Option Value for such Valid Day, divided by (ii) the number of Valid Days in the   Settlement Averaging Period; provided that   in no event shall the Cash Settlement Amount exceed the Applicable Limit.
    
	
 
    	
 
    	
 
    
	
Daily   Option Value:
    	
 
    	
For   any Valid Day, an amount equal to (i) the Option Entitlement on such   Valid Day, multiplied by (ii) the   Relevant Price on such Valid Day less the Strike Price on such Valid Day; provided that if the calculation contained in clause   (ii) above results in a negative number, the Daily Option Value for such   Valid Day shall be deemed to be zero. In no event will the Daily Option Value   be less than zero.
    

 

7

 

	
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, delivered to the Holder of the related   Convertible Note upon conversion of such Convertible Note and (B) the   number of Shares, if any, delivered to the Holder of the related Convertible   Note upon conversion of such Convertible Note multiplied   by the Applicable Limit Price, over (ii) USD 1,000.
    
	
 
    	
 
    	
 
    
	
Applicable   Limit Price:
    	
 
    	
The   opening price as displayed under the heading “Op” on Bloomberg   page HA.UQ <equity> (or its equivalent successor if such   page is not available) on the Settlement Date for the applicable Option;   provided that with respect to any   Convertible Note converted on or prior to the business day immediately   preceding March 1, 2016 to which Settlement in Shares applies and with   respect to any Convertible Note converted prior to November 15, 2015 to   which Low Cash Combination Settlement applies, the Applicable Limit Price is   the lesser of the opening price as displayed under the heading “Op” on   Bloomberg page HA.UQ <equity> (or its equivalent successor if such   page is not available) on the Settlement Date for the Option or on the   settlement date for the Convertible Note.
    
	
 
    	
 
    	
 
    
	
Valid   Day:
    	
 
    	
A   day on which (i) trading in the Shares generally occurs and (ii) a   Market Disruption Event has not occurred; provided that   if the Shares are not then listed for trading or quotation on or by any   exchange, bureau or other organization, “Valid Day” means a Business Day.
    
	
 
    	
 
    	
 
    
	
Scheduled   Valid Day:
    	
 
    	
A   day that is scheduled to be a Valid Day on the primary United States national   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   Valid Day” means a Business Day.
    
	
 
    	
 
    	
 
    
	
Business   Day:
    	
 
    	
Each   Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which   banking institutions in New York, NY are authorized or obligated by law or   executive order to close.
    
	
 
    	
 
    	
 
    
	
Relevant   Price:
    	
 
    	
On   any Valid Day, the per Share volume-weighted average price as displayed on   Bloomberg (or any successor service) page HA.UQ <equity> AQR in   respect of the period from 9:30 a.m. to 4:00 p.m., New York City   time, on such Valid Day; or, if such price is not available, the market value   of one Share on such Valid Day, as determined by the Calculation Agent in a   good faith reasonable manner using a volume weighted average method; provided that after the occurrence or effectiveness of an   event described in Section 9.12 of the Supplemental Indenture in which   all holders of Shares receive only cash, the Relevant Price will be the cash   price per Share received by holders of Shares in such event.
    

 

8

 

	
Settlement   Averaging Period:
    	
 
    	
For   any Option and regardless of the Settlement Method applicable to such Option:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)                if the related Conversion Date occurs prior to the Free Convertibility Date, the 30   consecutive Valid Days commencing on, and including, the third Business Day   following such Conversion Date; provided that   if the Notice of Exercise for such Option specifies that Settlement in Shares   or Low Cash Combination Settlement applies to the related Convertible Note,   the Settlement Averaging Period shall be the 60 consecutive Valid Day period   commencing on, and including, the second Valid Day immediately following such   Conversion Date; or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)             if the related Conversion Date occurs on or following the Free Convertibility Date,  the 30 consecutive Valid Days   commencing on, and including, the 32nd Scheduled Valid Day   immediately prior to the Expiration Date; provided that   if the Notice of Exercise or Notice of Final Settlement Method, as   applicable, for such Option specifies that Settlement in Shares or Low Cash   Combination Settlement applies to the related Convertible Note, the   Settlement Averaging Period shall be the 60 consecutive Valid Days   commencing on, and including, the 62nd Scheduled Valid Day   immediately prior to the Expiration Date.
    
	
 
    	
 
    	
 
    
	
Settlement   Date:
    	
 
    	
For   any Option, the third Business Day immediately following the last Valid Day   of the Settlement Averaging Period for such Option.
    
	
 
    	
 
    	
 
    
	
Settlement   Currency:
    	
 
    	
USD
    
	
 
    	
 
    	
 
    
	
Other   Applicable Provisions:
    	
 
    	
The   provisions of Sections 9.1(c), 9.8, 9.9, 9.11, 9.12 and 10.5 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 Equity Definitions (including, but not limited   to, Section 9.11 thereof), the parties acknowledge that (i) 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 
    

 

9

 

	
 
    	
 
    	
delivered   to Counterparty may be “restricted securities” (as defined in Rule 144   under the Securities Act of 1933, as amended (the “Securities Act”)).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
3.                                    Additional   Terms applicable to the Transaction.
    
	
 
    
	
Adjustments   applicable to the Transaction:
    
	
 
    	
 
    	
 
    
	
Potential   Adjustment Events:
    	
 
    	
Notwithstanding   Section 11.2(e) of the Equity Definitions, a “Potential Adjustment   Event” means an occurrence of any event or condition, as set forth in any   Dilution Adjustment Provision, that would result in an adjustment to the   Conversion Rate (as defined in the Indenture) of the Convertible Notes.
    
	
 
    	
 
    	
 
    
	
Method   of Adjustment:
    	
 
    	
Calculation   Agent Adjustment, which means that, notwithstanding   Section 11.2(c) of the Equity Definitions, upon any Potential   Adjustment Event that results in an adjustment to the Conversion Rate (as   defined in the Indenture) of the Convertible Notes, the Calculation Agent   shall make a corresponding adjustment 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 for the Transaction; provided   that, notwithstanding the foregoing, if   any Potential Adjustment Event occurs during the Settlement Averaging Period   but no adjustment was made to any Convertible Note under the Indenture   because the relevant Holder (as such term is defined in the Indenture) was   deemed to be a record owner of the underlying Shares on the related   Conversion Date, then the Calculation Agent shall make an adjustment, as   determined by it, to the terms hereof in order to account for such Potential   Adjustment Event.
    
	
 
    	
 
    	
 
    
	
Dilution   Adjustment Provisions:
    	
 
    	
Section 9.06(a),   (b), (c), (d), (e) and (h) and Section 9.08 of the   Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Extraordinary   Events applicable to the Transaction:
    
	
 
    	
 
    	
 
    
	
Merger   Events:
    	
 
    	
Applicable;   provided that notwithstanding   Section 12.1(b) of the Equity Definitions, a “Merger Event” means   the occurrence of any event or condition set forth in the definition of   “Merger Event” in Section 9.12 of the Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Tender   Offers:
    	
 
    	
Applicable;   provided that notwithstanding   Section 12.1(d) of the Equity Definitions, a “Tender Offer” means   the occurrence of any event or condition set forth in   Section 9.06(e) of the Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Consequence   of Merger Events /
    	
 
    	
 
    
	
Tender   Offers:
    	
 
    	
Notwithstanding   Section 12.2 and Section 12.3 of the Equity Definitions, upon the   occurrence of a Merger Event or a Tender Offer, the Calculation Agent shall   make a corresponding adjustment in respect of any adjustment under the   Indenture to any one or more of the 
    

 

10

 

	
 
    	
 
    	
nature   of the Shares (in the case of a Merger Event), Strike Price, Number of   Options, Option Entitlement and any other variable relevant to the exercise,   settlement or payment for the Transaction; provided, however, that such adjustment shall be made without   regard to any adjustment to the Conversion Rate pursuant to any Excluded   Provision that would constitute a Merger Event or Tender Offer; 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) shares of an entity or person   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 or Tender Offer, will not be a   corporation or will not be the Issuer following such Merger Event or Tender   Offer, then Cancellation and Payment (Calculation Agent Determination) shall   apply.
    
	
 
    	
 
    	
 
    
	
Nationalization, Insolvency   or Delisting:
    	
 
    	
Cancellation   and Payment (Calculation Agent Determination); provided that, in addition to the provisions of   Section 12.6(a)(iii) of the Equity Definitions, it will also   constitute a Delisting if the Exchange is located in the United States and   the Shares are not immediately re-listed, re-traded or re-quoted on any of   the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ   Global Market (or their respective successors); if the Shares are immediately   re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The   NASDAQ Global Select Market or The NASDAQ Global Market (or their respective   successors), such exchange or quotation system shall thereafter be deemed to   be the Exchange.
    
	
 
    	
 
    	
 
    
	
Additional   Disruption Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Change   in Law:
    	
 
    	
Applicable;   provided that   Section 12.9(a)(ii)(X) of the Equity Definitions is hereby amended   by replacing the word “Shares” with the phrase “Hedge Positions;” provided further that Section 12.9(a)(ii) of the   Equity Definitions is hereby amended by (i) replacing the phrase “the   interpretation” in the third line thereof with the phrase “or announcement or   statement of the formal or informal interpretation” and (ii) immediately   following the word “Transaction” in clause (X) thereof, adding the   phrase “in the manner contemplated by Hedging Party on the Trade Date.”
    
	
 
    	
 
    	
 
    
	
Failure   to Deliver:
    	
 
    	
Not   Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Disruption:
    	
 
    	
Applicable;   provided that:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i) Section 12.9(a)(v) of   the Equity Definitions is hereby amended by inserting the following two   phrases at the end of such Section:
    

 

11

 

	
 
    	
 
    	
“For   the avoidance of doubt, the term “equity price risk” shall be deemed to   include, but shall not be limited to, stock price and volatility risk. And,   for the further avoidance of doubt, any such transactions or assets referred   to in phrases (A) or (B) above must be available on commercially   reasonable pricing terms.”; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii) Section 12.9(b)(iii) of   the Equity Definitions is hereby amended by inserting in the third line   thereof, after the words “to terminate the Transaction”, the words “or a   portion of the Transaction affected by such Hedging Disruption”.
    
	
 
    	
 
    	
 
    
	
Increased   Cost of Hedging:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Party:
    	
 
    	
For   all applicable Additional Disruption Events, Dealer.
    
	
 
    	
 
    	
 
    
	
Determining   Party:
    	
 
    	
For   all applicable Extraordinary Events, Dealer.
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements   and Acknowledgements
    	
 
    	
 
    
	
Regarding   Hedging Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional   Acknowledgments:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
4.                                    Calculation   Agent.
    	
 
    	
Dealer;   provided that all determinations made   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 a prior written request by Counterparty, the Calculation Agent will   provide to Counterparty by email to the email address provided by   Counterparty in such prior 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 Dealer be obligated to share with Counterparty any proprietary   models used by it or any other party.
    
	
 
    	
 
    	
 
    
	
5.                                    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:
    
	
 
    	
 
    
	
 
    	
Bank:
    	
JPMorgan   Chase Bank, N.A.
    
	
 
    	
ABA#:
    	
021000021
    
	
 
    	
Acct   No.:
    	
099997979
    
	
 
    	
Beneficiary:
    	
JPMorgan   Chase Bank, N.A. New York
    
	
 
    	
Ref:
    	
Derivatives
    
	
 
    	
 
    	
 
    
	
 
    	
Account   for delivery of Shares from Dealer:
    
	
 
    	
 
    
	
 
    	
DTC   0060
    
					

 

12

 

	
6.
    	
Offices.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
The   Office of Counterparty for the Transaction is: Inapplicable, Counterparty is   not a Multibranch Party.
    
	
 
    	
 
    	
 
    
	
 
    	
(b)
    	
The   Office of Dealer for the Transaction is: London
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
JPMorgan   Chase Bank, National Association
    
	
 
    	
 
    	
London   Branch
    
	
 
    	
 
    	
P.O. Box   161
    
	
 
    	
 
    	
60   Victoria Embankment
    
	
 
    	
 
    	
London   EC4Y 0JP
    
	
 
    	
 
    	
England
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Notices.
    
	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Address   for notices or communications to Counterparty:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Hawaiian   Holdings, Inc.
    
	
 
    	
 
    	
3375   Koapaka Street, Suite G-350
    
	
 
    	
 
    	
Honolulu,   Hawaii 96819
    
	
 
    	
 
    	
Attention:
    	
Treasurer
    
	
 
    	
 
    	
Telephone   No.:
    	
(808)   835-3700
    
	
 
    	
 
    	
Facsimile   No.:
    	
(808)   835-3690
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(b)
    	
Address   for notices or communications to Dealer:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JPMorgan   Chase Bank, National Association
    
	
 
    	
 
    	
4   New York Plaza, Floor 18
    
	
 
    	
 
    	
New   York, NY 10004-2413
    
	
 
    	
 
    	
Attention:
    	
Jason M. Wood
    
	
 
    	
 
    	
Telephone   No.:
    	
(415)   315-8783
    
	
 
    	
 
    	
Facsimile   No.:
    	
(415)   226-0616
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
Representations   and Warranties of Counterparty.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Counterparty   hereby represents and warrants to Dealer on the date hereof and on and as of   the Premium Payment Date that:
    
	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Counterparty is duly organized and validly existing and   in good standing under the laws of its jurisdiction of incorporation.
    
	
 
    	
 
    	
 
    
	
 
    	
(b)
    	
Counterparty   has the corporate power and authority to execute and deliver this   Confirmation and to perform its obligations hereunder; and all action   required to be taken for the due and proper authorization, execution and   delivery by it of this Confirmation and the consummation by it of the   transactions contemplated hereby has been duly and validly taken.
    
	
 
    	
 
    	
 
    
	
 
    	
(c)
    	
This Confirmation has been duly authorized by   Counterparty and, when duly executed and delivered in accordance with its   terms by each of the parties hereto, will constitute a valid and legally   binding agreement of Counterparty enforceable against Counterparty in   accordance with its terms, except as enforceability may be limited by   applicable bankruptcy, insolvency or similar laws affecting creditors’  rights   generally or by equitable principles relating to enforceability.
    
					

 

13

 

	
 
    	
(d)
    	
The   execution, delivery and performance by Counterparty of this Confirmation and   the consummation of the transactions contemplated hereby will not   (i) conflict with or result in a breach or violation of any of the terms   or provisions of, or constitute a default under, or result in the creation or   imposition of any lien, charge or encumbrance upon any property or assets of   Counterparty or any of its subsidiaries pursuant to, any indenture, mortgage,   deed of trust, loan agreement or other agreement or instrument to which   Counterparty or any of its subsidiaries is a party or by which Counterparty   or any of its subsidiaries is bound or to which any of the property or assets   of Counterparty or any of its subsidiaries is subject, (ii) result in   any violation of the provisions of the charter or by-laws or similar   organizational documents of Counterparty or any of its subsidiaries or   (iii) result in the violation of any law or statute or any judgment,   order, rule or regulation of any court or arbitrator or governmental or   regulatory authority applicable to Counterparty or any of its subsidiaries,   except for such conflicts, breaches or violations in clauses (i) and   (iii) that would not have a material adverse effect on Counterparty’s   ability to perform its obligations under this Confirmation (a “Material Adverse Effect”).
    
	
 
    	
 
    	
 
    
	
 
    	
(e)
    	
No   consent, approval, authorization, order, registration or qualification of or   with any court or arbitrator or governmental or regulatory authority is   required for the execution, delivery and performance by Counterparty of this   Confirmation and the consummation of the transactions contemplated hereby for   (i) such consents, approvals, authorizations, orders, registrations or   qualifications (“Consents”) as   may be required under state securities laws or contemplated by this   Confirmation or (ii) where the failure to obtain or make any such   Consents would not reasonably be expected to have a Material Adverse Effect.
    
	
 
    	
 
    	
 
    
	
 
    	
(f)
    	
Counterparty   is not and, after giving effect to the transactions contemplated hereby, will   not be required to register as an “investment company” or an entity   “controlled” by an “investment company” within the meaning of the Investment   Company Act of 1940, as amended, and the rules and regulations of the   Securities and Exchange Commission thereunder.
    
	
 
    	
 
    	
 
    
	
 
    	
(g)
    	
Counterparty   is an “eligible contract participant” (as such term is defined in   Section 1a(12) of the Commodity Exchange Act, as amended, other than a   person that is an eligible contract participant under   Section 1a(12)(C) of the Commodity Exchange Act).
    
	
 
    	
 
    	
 
    
	
 
    	
(h)
    	
Counterparty   and each of its affiliates is not, on the date hereof, in possession of any   material non-public information with respect to Counterparty or the Shares.
    
	
 
    	
 
    
	
9.
    	
Other   Provisions.
    
	
 
    	
 
    
	
 
    	
(a)
    	
Opinions.   Counterparty shall deliver to Dealer an opinion of counsel, dated as of the   Trade Date, due incorporation, existence and good standing of Counterparty in   Delaware, the due authorization, execution and delivery of this Confirmation,   and the absence of conflict of the execution, delivery and performance of   this Confirmation with any material agreement required to be filed as an   exhibit to Counterparty’s Annual Report on Form 10-K and Counterparty’s   constituent documents.
    
	
 
    	
 
    	
 
    
	
 
    	
(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 the Business Day following the date of such repurchase if following such   repurchase, the number of outstanding Shares as determined on such day is   (i) less than 50 million (in the case of the first such notice) or   (ii) thereafter more than 1 million less than the number of Shares   included in the immediately preceding Repurchase Notice. 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   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 
    

 

14

 

	
 
    	
 
    	
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. 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, such consent not to be unreasonably   withheld, 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 a party and indemnity has 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)
    	
Regulation   M. Counterparty is not on the Trade Date engaged in a distribution, as   such term is used in Regulation M under the Securities Exchange Act of 1934,   as amended (the “Exchange Act”),   of any equity or equity-linked securities of Counterparty, other than   (i) a distribution meeting the requirements of the exception set forth   in Rules 101(a), 101(b)(10), 102(a) and 102(b)(7) of   Regulation M (the “Exclusions”).   Counterparty shall not, until the second Scheduled Trading Day immediately   following the Effective Date, engage in any such distribution (subject to the   Exclusions) other than the distribution of the Convertible Notes.
    
	
 
    	
 
    	
 
    
	
 
    	
(d)
    	
No   Manipulation. 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)
    	
Transfer   or Assignment.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
Counterparty   shall have the right to transfer or assign its rights and obligations   hereunder with respect to all, but not less than all, of the Options   hereunder (such Options, the “Transfer Options”);   provided that such transfer or assignment shall be subject to 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 9(b);
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(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);
    

 

15

 

	
 
    	
 
    	
 
    	
(C)
    	
Such   transfer or assignment shall be effected on terms, including any reasonable   undertakings by such third party (including, but not limited to, an   undertaking 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 and   reasonably satisfactory to Dealer;
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(D)
    	
Dealer   will 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 will not   occur as a result of such transfer and assignment;
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(F)
    	
Without   limiting the generality of clause (B), Counterparty shall cause 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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
Dealer   may, without Counterparty’s consent, transfer or assign all or any part of   its rights or obligations under the Transaction at any time to any affiliate   of Dealer (A) that has a rating for its long term, unsecured and   unsubordinated indebtedness that is equal to or better than the best of   Dealer’s credit rating and the credit rating of any guarantor of Dealer’s   obligations hereunder, in each case, at the time of the transfer or assignment,   or (B) 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 any parent of Dealer that has a credit rating that   is equal to or better than the best of Dealer’s credit rating and the credit   rating of any guarantor of Dealer’s obligations hereunder, in each case, at   the time of the transfer or assignment; provided that   any such transfer or assignment shall be subject to the conditions that   (I) following such transfer or assignment, the terms and conditions of   the Agreement as so transferred or assigned (the “Transferred   Agreement”) shall be substantially the same as the terms and   conditions of the Agreement immediately prior to such transfer or assignment,   (II) Counterparty will not be required to pay to the transferee an   amount in respect of an Indemnifiable Tax under   Section 2(d)(i)(4) of the Transferred Agreement greater than the   amount in respect of which Counterparty would have been required to pay to   Dealer under Section 2(d)(i)(4) in the absence of the transfer,   (III) Counterparty will not receive any payment under the Transferred   Agreement from which an amount is required to be withheld or deducted for or   on account of a Tax with respect to which no additional amount is required to   be paid by the transferee under Section 2(d)(i)(4) of the   Transferred Agreement (other than by reason of   Section 2(d)(i)(4)(A) or (B) thereof), (IV) neither an   Event of Default with respect to which Dealer is the Defaulting Party nor a   Termination Event with respect to which Dealer is the sole Affected Party   shall have occurred and be continuing at the time of the transfer, and   neither an Event of Default nor a Termination Event shall occur as a result   of the transfer, (V) each of Dealer and the transferee is a dealer in   “notional principal contracts” within the meaning of   Section 1.446-3(c)(4)(iii) of the U.S. Treasury Regulations and in   other derivatives, and (VI) Dealer has used its good faith efforts to   provide prior notice to Counterparty of such transfer and the proposed date   of such transfer, and Dealer shall
    

 

16

 

	
 
    	
 
    	
 
    	
provide   written notice to Counterparty reasonably promptly following such transfer.   In addition, if at any time (A) the Section 16 Percentage exceeds   7.5%, (B) the Option 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 may, without Counterparty’s consent, transfer   or assign all or any part of its rights or obligations under the Transaction   to any third party who is a dealer in “notional principal contracts” within   the meaning of Section 1.446-3(c)(4)(iii) of the U.S. Treasury   Regulations and in other derivatives, and with a rating for its long term,   unsecured and unsubordinated indebtedness equal to or better than the lesser   of (x) the credit rating of Dealer at the time of the transfer and   (y) 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 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. If at any time an Excess Ownership Position exists,   Dealer may designate any Exchange Business Day as an Early Termination Date   with respect to all or a portion of the Transaction (the “Terminated Portion”) such that following   such termination no Excess Ownership Position exists; provided   that Dealer may only designate an Early Termination Date pursuant to this   Section 9(e)(i) if Dealer has used its good faith efforts to notify   Counterparty of such Excess Ownership Position, and Dealer is unable, acting   in good faith and after using its commercially reasonable efforts, to effect   a transfer or assignment of Options to a third party in accordance with this   Section 9(e)(i) on pricing terms reasonably acceptable to Dealer   and within a time period reasonably acceptable Dealer such that no Excess   Ownership Position exists. In the event that Dealer so designates an Early   Termination Date with respect to a Terminated Portion, a payment shall be   made pursuant to Section 6 of the Agreement as if (1) an Early   Termination Date had been designated in respect of a Transaction having terms   identical to the Transaction and a Number of Options equal to the number of   Options 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 9(k) 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 “Option Equity Percentage”   as of any day is the fraction, expressed as a percentage, (A) the   numerator of which is the sum of (1) the product of the Number of   Options and the Option Entitlement and (2) the aggregate number of   Shares underlying any other call option transaction sold by Dealer to   Counterparty, 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 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, minus (B) 1% of the number of   Shares outstanding.
    

 

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(iii)
    	
Notwithstanding   any other provision in this Confirmation to the contrary requiring or   allowing Dealer to purchase, sell, receive or deliver any Shares or other   securities, or make or receive any payment in cash, to or from Counterparty,   Dealer may designate any of its affiliates to purchase, sell, receive or   deliver such Shares or other securities, or to make or receive such payment   in cash, and otherwise to perform Dealer’s obligations in respect of the   Transaction and any such designee may assume such obligations; provided that Dealer shall be discharged of its   obligations to Counterparty only to the extent of any such performance.
    
	
 
    	
 
    	
 
    
	
 
    	
(f)
    	
Staggered   Settlement. If upon advice of counsel with respect to   applicable legal and regulatory requirements, including any requirements   relating to Dealer’s hedging activities hereunder, Dealer 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 the Settlement Date for the Transaction, Dealer may, by notice to   Counterparty on or prior to any Settlement Date (a “Nominal   Settlement Date”), elect to deliver the Shares on two or more   dates (each, a “Staggered Settlement   Date”) as follows:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
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;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
the   aggregate number of Shares that Dealer will deliver to Counterparty hereunder   on all such Staggered Settlement Dates will equal the number of Shares that   Dealer would otherwise be required to deliver on such Nominal Settlement   Date; and
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
if   the Net Share Settlement terms set forth above were to apply on the Nominal   Settlement Date, then the Net Share Settlement terms will apply on each   Staggered Settlement Date, except that the Net Shares will be allocated among   such Staggered Settlement Dates as specified by Dealer in the notice referred   to in clause (i) above.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(g)
    	
Role   of Agent.  Each party   agrees and acknowledges that (i) J.P. Morgan Securities LLC, an   affiliate of JPMorgan (“JPMS”), has   acted solely as agent and not as principal with respect to the Transaction   and (ii) JPMS has no obligation or liability, by way of guaranty,   endorsement or otherwise, in any manner in respect of the Transaction   (including, if applicable, in respect of the settlement thereof). Each party   agrees it will look solely to the other party (or any guarantor in respect   thereof) for performance of such other party’s obligations under the   Transaction.
    
	
 
    	
 
    	
 
    
	
 
    	
(h)
    	
Additional   Termination Events. Notwithstanding anything to the contrary   in this Confirmation:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)   
    	
If   an event of default with respect to Counterparty occurs under the terms of   the Convertible Notes as set forth in Section 5.1 of the Base Indenture   or Section 6.01 of the Supplemental Indenture and results in the   Convertible Notes becoming due and payable pursuant to the terms of the   Indenture before they would otherwise have been due and payable, then the   occurrence of such event shall constitute an Additional Termination Event   applicable to the Transaction and, with respect to such Additional Termination   Event, (A) Counterparty shall be deemed to be the sole Affected Party,   (B) the Transaction shall be the sole Affected Transaction and   (C) Dealer shall be the party entitled to designate an Early Termination   Date pursuant to Section 6(b) of the Agreement.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)   
    	
The   receipt by Dealer from Counterparty, within the applicable time period set   forth under “Notice of Exercise” above, of any Notice of Exercise in respect   of Options that relates to Convertible Notes as to which additional Shares   would be added to the Conversion Rate pursuant to Section 9.15 of the   Supplemental Indenture in connection with a “Fundamental Change” (as defined   in the Supplemental Indenture) shall
    

 

18

 

	
 
    	
 
    	
 
    	
constitute   an Additional Termination Event as provided in this Section 9(h)(ii).   Upon receipt of any such Notice of Exercise, Dealer shall designate an   Exchange Business Day following such Additional Termination Event (which   Exchange Business Day shall be on or as promptly as reasonably practicable   after the related settlement date for such Convertible Notes) as an Early   Termination Date with respect to the portion of this Transaction   corresponding to a number of Options (the “Make-Whole   Conversion Options”) equal to the lesser of (A) the number of   such Options specified in such Notice of Exercise 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 Make-Whole   Conversion Options. Any payment hereunder with respect to such termination   (the “Make-Whole Unwind Payment”) shall be   calculated pursuant to Section 6 of the Agreement as if (1) an   Early Termination Date had been designated in respect of a Transaction having   terms identical to this Transaction and a Number of Options equal to the   number of Make-Whole Conversion 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 (and, for the avoidance of doubt, in determining the amount   payable pursuant to Section 6 of the Agreement, the Calculation Agent   shall not take into account any adjustments to the Option Entitlement that   result from corresponding adjustments to the Conversion Rate pursuant to   Section 9.15 of the Supplemental Indenture) and shall take into account   the time value of this Transaction with respect to the Expiration Date; provided that the amount of cash deliverable in respect of   such early termination by Dealer to Counterparty shall not be greater than   the product of (x) the Applicable Percentage and (y) the excess of   (I) (1) the number of Make-Whole Conversion Options multiplied by (2) the Conversion Rate (after taking   into account any applicable adjustments to the Conversion Rate pursuant to   Section 9.15 of the Supplemental Indenture) multiplied by (3) a   price per Share determined by the Calculation Agent over (II) the   aggregate principal amount of such Convertible Notes, as determined by the   Calculation Agent in a commercially reasonable manner. Counterparty may   irrevocably elect, if so designated in its Notice of Exercise to Dealer as   set forth above, to receive the Make-Whole Unwind Payment in Shares, in which   case, in lieu of making such Make-Whole Unwind Payment as set forth above,   Dealer shall deliver to Counterparty, within a commercially reasonable period   of time after such designation as determined by Dealer (taking into account   existing liquidity conditions and Dealer’s hedging and hedge unwind activity   or settlement activity in connection with such delivery) a number of Shares   equal to such Make-Whole Unwind Payment divided by a price per Share   determined by the Calculation Agent in good faith and in a commercially reasonable   manner.
    
	
 
    	
 
    	
 
    
	
 
    	
(i)
    	
Amendments   to Equity Definitions.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
Section 12.6(a)(ii) of the Equity Definitions is hereby amended   by (1) deleting from the fourth line thereof the word “or” after the   word “official” and inserting a comma therefor, and (2) deleting the   semi-colon at the end of subsection (B) thereof and inserting the   following words therefor “or (C) at Dealer’s option, the occurrence of   any of the events specified in Section 5(a)(vii)(1) through   (9) of the ISDA Master Agreement with respect to Counterparty.”
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
Section 12.9(b)(i) of the Equity Definitions is hereby amended   by (1) replacing “either party may elect” with “Dealer may elect” and   (2) replacing “notice to the other party” with “notice to Counterparty”   in the first sentence of such section.
    
	
 
    	
 
    	
 
    
	
 
    	
(j)
    	
No   Setoff. Neither party shall have   the right to set off any obligation that it may have to the other party under   the Transaction against any obligation such other party may have to it,   whether arising under the Agreement, this Confirmation or any other agreement   between the parties hereto, by operation of law or otherwise.
    

 

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(k)
    	
Alternative   Calculations and Payment on Early Termination and on Certain Extraordinary   Events. If in respect of the Transaction, an amount is   payable by Dealer to Counterparty (i) pursuant to Section 12.7 or   Section 12.9 of the Equity Definitions or (ii) pursuant to   Section 6(d)(ii) of the Agreement (any such amount, a “Payment Obligation”), Counterparty may request Dealer to   satisfy the Payment Obligation by the Share Termination Alternative (as   defined below) (except that Counterparty shall not have the right to make   such an election in the event of (I) a Nationalization, Insolvency,   Merger Event or Tender Offer, in each case, in which the consideration to be   paid to holders of Shares consists solely of cash, (II) a Merger Event   or Tender Offer that is within Counterparty’s control, or (III) an Event   of Default in which Counterparty is the Defaulting Party or a Termination   Event in which Counterparty is the Affected Party, other than an Event of   Default of the type described in Section 5(a)(iii), (v), (vi),   (vii) or (viii) of the Agreement or a Termination Event of the type   described in Section 5(b) of the Agreement in each case that   resulted from an event or events outside Counterparty’s control) and shall   give irrevocable telephonic notice to Dealer, confirmed in writing within one   Scheduled Trading Day, no later than 12:00 p.m. (New York City time) on   the Merger Date, the Tender Offer Date, the Announcement Date (in the case of   Nationalization, Insolvency or Delisting), the Early Termination Date or   date of cancellation, as applicable; provided that   if Counterparty does not validly request Dealer to satisfy the Payment   Obligation by the Share Termination Alternative, Dealer shall have the right,   in its sole discretion, to satisfy its Payment Obligation by the Share   Termination Alternative, notwithstanding Counterparty’s election to the   contrary.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Share   Termination Alternative:
    	
If   the Share Termination Alternative is applicable in respect of any Payment   Obligation, Dealer shall deliver to Counterparty the Share Termination   Delivery Property on, or within a commercially reasonable period of time   after, the date when the 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 Agreement, as applicable (the   “Share Termination Payment Date”), in   satisfaction of the 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.
    

 

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Share   Termination Delivery Unit:
    	
One   Share or, if a Merger Event has occurred and a corresponding adjustment to   the Transaction has been made, 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 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, 9.11, 9.12 and 10.5 (as modified above) of the Equity Definitions will   be applicable, except that all references in such provisions to   “Physically-settled” shall be read as references to “Share Termination   Settled” and all references to “Shares” shall be read as references to “Share   Termination Delivery Units”. “Share Termination Settled” in relation to the   Transaction means that the Share Termination Alternative is applicable to the   Transaction.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(l)
    	
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.
    
	
 
    	
 
    	
 
    
	
 
    	
(m)
    	
Registration.   Counterparty hereby agrees that if, in the good faith reasonable judgment of   Dealer, based on the advice of legal counsel, the Shares (“Hedge Shares”) acquired by Dealer for the purpose of   hedging its obligations pursuant to the Transaction cannot be sold in the   public market by Dealer without registration under the Securities Act,   Counterparty shall, at its election, either (i) in order to allow Dealer   to sell the Hedge Shares in a registered offering, make available to Dealer   an effective registration statement under the Securities Act and enter into   an agreement, in customary form and in substance reasonably satisfactory to   Dealer, substantially in the form of an underwriting agreement for a   registered secondary offering of equity securities of companies comparable in   size, maturity and line of business; provided, however, that if Dealer, in its sole reasonable   discretion, is not satisfied with access to due diligence materials, the   results of its due diligence investigation, or the procedures and   documentation for the registered offering referred to above, then clause   (ii) or clause (iii) of this paragraph 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 companies comparable in size,   maturity and line of business (in which case, the Calculation Agent shall   make any reasonable adjustments in good faith to the terms of the Transaction   that are necessary, in its reasonable judgment, to compensate Dealer for any   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 Relevant Price on such Exchange Business Days, and in the   amounts, requested by Dealer.
    
	
 
    	
 
    	
 
    
	
 
    	
(n)
    	
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.
    

 

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(o)
    	
Right   to Extend. Dealer may postpone or add, in whole or in part,   any Valid Day or Valid 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 Options hereunder, if Dealer determines, in its commercially   reasonable judgment, that such action is reasonably necessary or appropriate   to preserve Dealer’s hedging or hedge unwind activity hereunder in light of   existing liquidity conditions or to enable Dealer to effect purchases of   Shares in connection with its 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 with related policies and   procedures applicable to Dealer; provided that   in no event shall Dealer have the right to extend the Settlement Averaging   Period more than 20 Valid Days.
    
	
 
    	
 
    	
 
    
	
 
    	
(p)
    	
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 of common stockholders of Counterparty in any United   States 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.
    
	
 
    	
 
    	
 
    
	
 
    	
(q)
    	
Securities   Contract; Swap Agreement. The parties hereto   intend for (i) the Transaction to be a “securities contract” and a “swap   agreement” as defined in the Bankruptcy Code (Title 11 of the United States   Code) (the “Bankruptcy Code”), and the   parties hereto to be entitled to the protections afforded by, among other   Sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the   Bankruptcy Code, (ii) a party’s right to liquidate the Transaction and   to exercise any other remedies upon the occurrence of any Event of Default   under the Agreement with respect to the other party to constitute a   “contractual right” as described in the Bankruptcy Code, and (iii) each   payment and delivery of cash, securities or other property hereunder to   constitute a “margin payment” or “settlement payment” and a “transfer” as   defined in the Bankruptcy Code.
    
	
 
    	
 
    	
 
    
	
 
    	
(r)
    	
Notice   of Certain Other Events. Counterparty covenants and   agrees that:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
promptly   following the public announcement of the results of any election by the   holders of Shares with respect to the consideration due upon consummation of   any consolidation, merger and binding share exchange to which Counterparty is   a party, or any sale of all or substantially all of Counterparty’s assets, in   each case pursuant to which the Shares will be converted into cash,   securities or other property, Counterparty shall give Dealer written notice   of the types and amounts of consideration that holders of Shares have elected   to receive upon consummation of such transaction or event (the date of such   notification, the “Consideration   Notification Date”); provided that   in no event shall the Consideration Notification Date be later than the date   on which such transaction or event is consummated; and
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
promptly   following any adjustment to the Convertible Notes in connection with any   Potential Adjustment Event, Merger Event or Tender Offer, Counterparty shall   give Dealer written notice of the details of such adjustment.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(s)
    	
Wall Street Transparency and Accountability Act. In connection with Section 739 of the Wall Street Transparency   and Accountability Act of 2010 (“WSTAA”), the   parties hereby agree that neither the enactment of WSTAA or any regulation   under the WSTAA, nor any requirement under WSTAA or an amendment made by   WSTAA, shall limit or otherwise impair either party’s otherwise applicable   rights to terminate, renegotiate, modify, amend or supplement this Confirmation   or the Agreement, as applicable, arising from a termination event, force   majeure, illegality, increased costs, regulatory change or similar event   under this Confirmation, the Equity Definitions incorporated herein, or the   Agreement (including, but not limited to, rights arising from Change in Law,   Hedging Disruption, Increased Cost of Hedging, an Excess Ownership   Position, or Illegality (as defined in the Agreement)).
    

 

22

 

	
 
    	
(t)
    	
Early Unwind. In the event   the sale of the “Additional Notes” (as defined in the Underwriting Agreement)   is not consummated with the Underwriter for any reason by 5:00 p.m. (New   York City time) on the Premium Payment Date, or such later date as agreed   upon by the parties (the Premium Payment Date or such later date, the “Early   Unwind Date”),  the   Transaction shall automatically terminate (the “Early Unwind”)  on the Early Unwind Date and   (i) the Transaction and all of the respective rights and obligations of   Dealer and 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; provided that   Counterparty shall purchase from Dealer on the Early Unwind Date all Shares   purchased by Dealer or one or more of its affiliates in connection with the   Transaction at the then prevailing market price. Each of Dealer and   Counterparty represent and acknowledge to the other that, subject to the   proviso included in this Section 9(t), upon an Early Unwind, all   obligations with respect to the Transaction shall be deemed fully and finally   discharged.
    
	
 
    	
 
    	
 
    
	
 
    	
(u)
    	
Payment   by Counterparty. In the event that (i) an Early   Termination Date occurs or is designated with respect to the Transaction as a   result of a Termination Event or an Event of Default (other than an Event of   Default arising under Section 5(a)(ii) 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.
    

 

23

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by signing and returning this Confirmation to EDG Confirmation Group, J.P. Morgan Securities LLC, 277 Park Avenue, 11th Floor, New York, NY 10172-3401, or by fax to (212) 622 8519.

 

Yours faithfully,

 

 

	
 
    	
 
    	
J.P. MORGAN SECURITIES LLC,
    
	
 
    	
 
    	
as agent for JPMorgan Chase Bank, National Association
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jason M. Wood
    
	
 
    	
 
    	
Name:
    	
Jason   M. Wood
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Accepted and confirmed as of the Trade Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
HAWAIIAN HOLDINGS, INC.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Peter R. Ingram
    	
 
    	
 
    	
 
    
	
Name:
    	
Peter   R. Ingram
    	
 
    	
 
    	
 
    
	
Title:
    	
Executive   Vice President, Chief Financial Officer and Treasurer
    	
 
    	
 
    	
 
    

 

JPMorgan Chase Bank, National Association 
 Organised under the laws of the United States as a National Banking Association
 Main Office 1111 Polaris Parkway, Columbus, Ohio 43271
 Registered as a branch in England & Wales branch No. BR000746
 Registered Branch Office 125 London Wall, London EC2Y 5AJ
 Authorised and regulated by the Financial Services Authority

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