Document:

aaxi8kex101_31711.htm

 

Exhibit 10.1

 

LICENSING AGREEMENT

 

 

    THIS AGREEMENT (“Agreement”) is dated March 11, 2011 among Eco Global Corporation, a Corporation, established pursuant to the laws of the State of Nevada, having an address of 123 Worthington St. Suite 203, Spring Valley, CA 91777 (“Licensor”), and Accelerated Acquisitions XI, Inc., a company incorporated pursuant to the laws of the State of Delaware, with an address of 1840 Gateway drive, Suite 200, Foster City, CA 94404 (“Licensee”).

 

WHEREAS:

 

	
A.   Except as provided herein, Licensor holds all rights, title and interest to a certain invention  entitled “Block Construction System” as described in patent number US 7,305,803 B2 and Trademarks under serial No.77/439,024” as further described in Schedule "A" attached hereto (“Technology”);

 

	B. 	
Licensor wishes to enter into a formal licensing agreement with Licensee on the terms set forth below;

THIS AGREEMENT WITNESSES THAT in consideration of US $100,000.00 (the receipt and sufficiency of which is hereby acknowledged), the parties agree as follows:

 

ARTICLE 1

INTERPRETATION

1 .1   Construction and Interpretation. In this Agreement, unless inconsistent with or excluded by the context:

          

	
  

	
(a)

	
Any heading, index, table of contents or marginal note used in this Agreement is for convenience only and will not limit or affect the interpretation or construction of this Agreement;

.

	
  

	
(b)

	Singular words will include the plural and plural words will include the singular;

	
  

	
(c)

	A reference to a person will include a company or other corporation and a reference to a company or other corporation will include a person;

	
  

	
(d)

	A word importing a particular gender will include each other gender; and

	
  

	
(e)

	A reference to a party to this Agreement includes that party's heirs, executors, administrators, successors and permitted assigns.

 

1.2   Definitions. In this Agreement, unless inconsistent with or excluded by the context:

	
  

	
(a)

	 “Affiliate” means, with respect to any entity, any other entity which directly or indirectly controls or is controlled by or is under direct or indirect common control with such first mentioned entity;

	
  

	
(b)

	 “Improvements” means all improvements to the Technology developed within or by Licensee;

  

Exhibit 10.1 --- Page 1

  

	
  

	
(c)

	“Intellectual Property” includes the Technology and any intellectual property relating to the Technology, including any patent, patent application, copyright, industrial design, trademark, any rights to patent, copyright, industrial design or trademark in any country, engineering designs, concepts, models, trade secrets, know-how and show how, and includes any new technology or the products as may hereafter be developed or acquired by Licensee or any of its subsidiaries;

	
  

	
(d)

	“License” means an exclusive, transferable, license (with unlimited right of sublicense) to allow Licensee to make, use and apply the Technology and conduct its business in the Territory;

	
  

	
(e)

	“Licensed Products” means products which, in the absence of the License, would infringe the Licensor’s intellectual property rights in the Technology;

	
  

	
(f)

	
“Original Invention” means a certain invention entitled “Block Construction System” as further described in Schedule "A" attached hereto;

	
  

	
(g)

	
“Technology” means certain technology known as “Block Construction System” and includes the Original Invention, any improvements thereof and any products which embodies the Block Construction System and any improvements thereof or thereto;

 

	
  

	
(h)

	“Territory” means worldwide; and

	
  

	
(i)

	“Trade-Mark” means and trade-mark or trade-name as may be adopted for use on the Licensed Products from time to time.

 

1.3  Variation of Agreement. Any variation or modification or waiver of the terms or conditions of this Agreement must be in writing, duly executed by Licensor and Licensee, respectively.

1.4  Severance. Each word, phrase, sentence, paragraph and section of this Agreement is severable and if a court in any jurisdiction determines that any such provision is unenforceable, illegal or void in that jurisdiction the court may sever that provision which becomes inoperative and such severance will not affect the operation of any other provisions of this Agreement nor the operation of that provision in any other jurisdiction.

1.5  Waiver. The failure of either party hereto at any time to enforce any provision of this Agreement will not affect its rights thereafter to require complete performance by the other party, nor will the waiver of any breach of any provision be taken or held to be a waiver of any subsequent breach of any such provision or be a waiver of the provision itself. In order for any waiver to be effective, it must be in writing and signed by an authorized officer of the party.

1.6   Law. This Agreement will be governed by, and construed in accordance with, the laws of the State of Delaware, and both parties agree to submit to the exclusive jurisdiction of the courts of the State of Delaware.

  

Exhibit 10.1 --- Page 2

  

ARTICLE 2

LICENSE

2.1     Grant of License:

 

  (a)  Licensor hereby grants to Licensee an exclusive, transferable, license for use in the Territory, with unlimited right of sublicense, as set forth in Section 2.1(e) below, to allow the Licensee to use the Intellectual Property to make, use, and apply the Technology in the course of Licensee’s business, which, in the absence of the License, would infringe Licensor’s intellectual property;

 

     (b)   Except for the rights granted pursuant to the License, Licensor shall retain all rights, title and interest to the Technology;

 

     (c)   Licensee shall be responsible for all of the testing and improvements to the Technology;

 

     (d)   Licensor shall retain all rights to the Improvements, but such Improvements shall also be a part of the License;

     

     (e)   Licensee shall have the right to offer unlimited royalty-bearing sublicenses to third parties where such third parties are in a position to commercialize the Technology in ways that Licensee cannot accomplish in a competitive manner.  Licensee shall pay Licensor three percent (3.0%) of all royalties and fees received from such third parties. If Licensee receives any non-cash consideration as part of the sublicense consideration (including equity in sub-licensee or other entities), Licensor shall have the option to take its portion of the sublicense consideration in kind or in cash based on the fair market value of the non-cash consideration as of the date of receipt by Licensee wherein the fair market value as determined by Licensee’s independent accounting advisors shall equal the cash consideration an unaffiliated, unrelated buyer would pay in an arm’s length sale of a substantially identical item sold in the same quantity, under the same terms, and at the same time and place. Such right to sublicense is subject to the following conditions:

 

	
  

	 (i) 	
In each sublicense agreement, the sublicensee will be subject to the terms   and conditions of the license granted to Licensee under this Agreement, and the sublicensee will be prohibited from either assigning its sublicense or granting further sublicenses, without first obtaining approval from Licensor; provided, however, that in the event that such further sublicense is approved, any fee or other consideration paid to sublicensee in consideration of such sub-sublicense will be treated as sublicense consideration as if the sub-sublicensee were a sublicensee. Nevertheless, Licensee may set royalty or other payments at its discretion for its sublicensees, as long as the applicable royalties or other payments of its sublicensees are not more favorable to the sublicensee than the corresponding terms of this Agreement.

 

	
  

	 (ii) 	Licensee will forward to Licensor, within thirty (30) days following its execution, a fully executed, complete, and accurate copy written in the English language of each sublicense agreement granted under this Agreement. Licensor’s receipt of such sublicense agreement will not constitute a waiver of any of Licensor’s rights or Licensee’s obligations under the Agreement.

 

  

Exhibit 10.1 --- Page 3

  

	
  

	 (iii) 	Notwithstanding any such sublicense agreement, Licensee will remain primarily liable to Licensor for all of Licensee’s duties and obligations contained in the Agreement, and any act or omission of a sublicensee that would be a breach of the Agreement if performed by Licensee will be deemed to be a breach by Licensee of the Agreement. Each sublicense agreement will contain a right of termination by Licensee in the event that the sublicensee breaches the payment obligations affecting Licensor or any other material terms and conditions of the sublicense agreement that would constitute a breach of the terms and conditions of the Agreement if such acts were performed by Licensee. In the event of such sublicensee breach, and if after a reasonable opportunity to cure as provided in any such sublicense agreement, such sublicensee fails to cure such sublicensee breach, then Licensee will terminate the sublicense agreement unless Licensor agrees in writing that such sublicense agreement need not be terminated.

 

	
  

	 (iv) 	Upon termination of the Agreement for any reason, all sublicense agreements will, at Licensor’s option, be (i) assigned to and assumed by Licensor, or (ii) terminated.

 

  (f)  Licensee shall pay Licensor a royalty of three percent (3%) of all gross revenues resulting from the use of the Technology by Licensee, except as otherwise modified in writing.

 

2.2   Exclusive Rights. The rights of Licensee to the License in accordance with Section 2.1 will be sole and exclusive, and Licensor will not directly or indirectly compete with Licensee, nor the license, authorize or permit any third party to compete with Licensee with respect to the use of the Technology.

 

2.3  Assignment of Rights. Licensor and Licensee acknowledge that the respective rights and obligations pursuant to this Agreement are personal to the parties and that Licensee, except in the event of the acquisition of Licensee, by any means, or the sale or merger of substantially all of Licensee’s assets to or with a third party, will not assign this Agreement or assign or delegate any or all rights, duties, or obligations under this Agreement without the prior consent in writing of Licensor, which consent Licensor may not withhold unreasonably.  If Licensor consents to such assignment or delegation, Licensee will remain jointly and severally liable with the assignee or delegate for the obligations of Licensor under this Agreement.  Subject to the limitations hereinbefore expressed, this Agreement will inure to the benefit of and be binding upon the parties and their respective successors and assigns.

2.4  Reorganization of Rights. Licensor may choose to reorganize its worldwide licensing strategy, including delegation of certain commercialization rights to a separate entity, with the prior written consent of Licensee, which may not be unreasonably withheld, provided that the full beneficial terms to Licensee embodied in the Agreement shall not be diminished due to such actions.

2.5  Effect of Assignment. Unless otherwise agreed upon between the parties, no assignment of this Agreement, the benefit of this Agreement or any rights, licenses or authorities pursuant to this Agreement will relieve the assigning party from any liability under this Agreement, whether absolute, contingent, due or accruing, which exists as of the date of assignment.

  

Exhibit 10.1 --- Page 4

  

2.6    Confidential Information. Licensee acknowledges that its entire knowledge of the Technology and the business of Licensor, including, without limitation, the contents of any Documents (defined as all drawings, specifications, blueprints, programs and other material in electronic form or otherwise relating in any manner to the Intellectual Property or the Technology) and periodic updates or revisions, in effect from time to time and the designs, plans, prototypes, specifications, standards and operating procedures for the Technology, will be derived from information disclosed to Licensee by Licensor in confidence and that the Documents and such other information are confidential information and/or trade secrets of the Licensor (all of which is herein collectively called the "Licensor Confidential Information") except where such information is in the public domain or is information describing generally accepted business, engineering or manufacturing practices. Accordingly, Licensee agrees that it will maintain the absolute confidentiality of the Intellectual Property, the Documents and such other information, both during and after the term of this Agreement, disclosing same to other employees of Licensee only to the extent necessary for compliance with this Agreement.

 

All Licensor Confidential Information obtained by Licensee shall be considered confidential and will not be disclosed by Licensee to any person without the prior written consent of Licensor. Licensor will provide reasonable confidentiality agreements in the form attached hereto as Schedule C to be signed by Licensee and all employees or sub-contractors of Licensee to whom any Licensor Confidential Information will be disclosed, and Licensee will provide or obtain signatures of such confidentiality agreements as the case may be.

 

During the course of its relationship with Licensor, Licensee or its subsidiaries or associates or their employees, agents or consultants may disclose certain proprietary or confidential information to Licensor or its subsidiaries or associates or their employees, agents or consultants. The proprietary or confidential information may be oral or written, may be of a technical or commercial nature, may take the form of plans, drawings, processes, formulae, schedules, reports, projections, analyses, programs, prints, recordings, lists or other compilations of information, and may relate to Licensee, its vendors, employees, stockholders or customers. All of such proprietary information and confidential information is herein collectively called the “Licensee Confidential Information”.

 

Any Licensee Confidential Information obtained by Licensor will be considered confidential and will not be disclosed by Licensor to any person without the prior written consent of Licensee. Licensee agrees that the Licensor Confidential Information, and all rights to the Licensor Confidential Information, which has been or will be disclosed to Licensee, as well any improvement or technology using, relating to or incorporating the Licensor Confidential Information shall remain the exclusive property of Licensor, and shall be held in trust for the benefit of Licensor.  Licensee agrees that it will not, directly or indirectly, deal with, use, or exploit the Licensor Confidential Information without Licensor's prior written consent. With regard to any improvement or new technology using, relating to or incorporating the Licensor Confidential Information, Licensee agrees to assign to Licensor all right, title and interest in such improvements or technology, any copyright, trademark, industrial design, patent applications and copyrights, trademarks, industrial designs, patents granted thereto, the sole right to file such applications and Licensee agrees to assist Licensor in obtaining reissues, divisions, renewals or extensions of any such applications and to do any act required to aid Licensor in obtaining and enforcing proper intellectual property protection.

               

  

Exhibit 10.1 --- Page 5

  

The foregoing restrictions do not apply to information which:

(a)     at the time of disclosure was in the public domain as evidenced by a printed publication or otherwise;

(b)     after disclosure becomes part of the public domain by publication or otherwise, other than by action of the disclosing party;

(c)     was in the possession of the disclosing party at the time of disclosure by the disclosing party and was not acquired, directly or indirectly, from the non-disclosing party; or

(d)     the disclosing party rightfully receives from an independent third party who did not receive such information, directly or indirectly, from the other party with limitation or restriction on its use.

 

The obligations contained in this Article will continue notwithstanding the termination of this Agreement or any confidentiality agreements.

The products or proceeds of the services performed by Licensee under this Agreement including, but not limited to, documents, written materials, programs, documentation, designs, discs and tapes shall be and remain the property of Licensor and Licensee shall be able to use such written materials, programs, documentation, designs, discs and tapes for the purposes of carrying out its obligations under this Agreement while the Agreement is in effect.

Licensee will, however, notify Licensor immediately of any alleged, possible, or suspected infringement, passing off, or challenge to the use of any of the Intellectual Property or claim by any person to any rights in any similar trademarks or names of which Licensee is or becomes aware. Licensor agrees to execute any and all instruments and documents, render such assistance and do such acts and things as may be, in the opinion of Licensee, acting reasonably, necessary or advisable to protect and maintain the interests of Licensor in any such litigation or proceedings or to otherwise protect and maintain the interest of Licensor in the Intellectual Property.

 

Licensee will have the right, but not the obligation, to prosecute infringement of any of the intellectual property related to the Technology at its own expense. Licensee will not settle or compromise any such suit in a manner that imposes any obligations or restrictions on Licensor or grants any rights to any intellectual property of the Technology, without Licensor’s prior written consent. At the time of filing any infringement enforcement action against a third party, Licensor and Licensee will determine how any damages awarded will be distributed between Licensor and Licensee; provided, however, that in no event will Licensor’s distribution be less than an amount that would have been due to Licensor as sublicense fees as if the litigation recovery had been sublicense consideration. In such a situation Licensee will recoup 100% of its entire litigation expenses first before any calculation is made with regard to the division of damages awarded. In the event that Licensee is not successful in winning a litigation case, Licensee may deduct from future royalty and sublicense fees fifty percent of such litigation costs.

2.8  No Agency or Joint Venture. Nothing in this Agreement constitutes or deems the parties to be partners or joint ventures in relation to the distribution or marketing of the Products, nor to create the relationship of principal and agent or master and servant between the parties, or any other form of legal association which would impose liability upon one party for any act or failure to act by the other party.

  

Exhibit 10.1 --- Page 6

  

2.9  Term. The term ("Term") of this Agreement and of the rights, authorities and licenses granted to the Licensee pursuant to this Agreement for (i) the Technology, (ii) any improvements of or to the Technology, or (iii) any product which embodies the Technology or such improvements shall commence upon execution of this Agreement and continue for thirty (30) years, provided that the Licensee is not in breach or default of any of the terms or conditions contained in this Agreement.

2.10  Renewal. Subject to written mutual agreement between Licensor and Licensee, this Agreement may be renewed.

ARTICLE 3

LICENSEE’S COMMERCIALIZATION OBLIGATIONS

3.1     Responsibilities.  Licensee shall perform as follows:

 (a)    Licensee shall fund payments immediately as they become due for:

     

  

Exhibit 10.1 --- Page 7

  

(i)           reasonable relocation and resettlement costs of a Licensor platform advisor and other necessary personnel agreed upon between the two parties, to the testing and development locale including the acquisition and transport of prototype materials and required documents or plans;

(ii)       legal expenses to a patent attorney firm, mutually agreed upon among the parties, who will provide necessary assistance in due diligence for the patentability of the technology;

 

(iii)      fund the ongoing research, development and commercialization of the Technology and the research, development and commercialization of structures using the Technology;

 

(b)    Provide assistance to the Licensor with the procurement of patent protection, including cooperating in registered user application of such other applications or filings as are required to effect necessary patent protection with respect to the Technology. Licensee shall pay patent costs and expenses related to United States and foreign filings, including patent filing, translation, search, prosecution and maintenance costs and fees. Licensee will be billed and will pay directly to patent counsel all documented costs and fees and other charges incident to the preparation, prosecution, and maintenance of any patents, copyrights or trademarks related to the Technology within thirty (30) days after receipt of invoice.  Licensee at its option may register this Agreement with any patent office having jurisdiction.  Licensor will work closely with Licensee to develop a suitable strategy for the prosecution and maintenance of all patents, industrial design, trademarks and copyrights. It is intended that Licensee may interact directly with the selected patent counsel in all phases of patent prosecution, such as preparation, office action responses, filing strategies for continuation or divisional applications, and other related activities. Licensor will provide copies of all documents prepared by the selected patent counsel to Licensee for review and comment prior to filing, to the extent practicable under the circumstances.  Licensor will maintain final authority in all decisions regarding the prosecution and maintenance of any patent, industrial design, trademark or copyright applications. All new patent applications and patents will be in the name of Licensee and owned by Licensee.

     

(c)    Licensee will use diligent and commercially reasonable efforts to actively   commercialize the Technology.  “Actively commercialize” means having a commercially effective, reasonably funded ongoing and active research, development, manufacturing, marketing and/or sales program directed toward obtaining regulatory approval, production and/or sales of products embodying the Technology in applicable markets.

 

	
  

	
     

  

Exhibit 10.1 --- Page 8

  

(d)   All payments to Licensor will be made in United States dollars by check payable to the name of Licensor and sent to:

 

       Eco Global Corporation

       123 Worthington St. Suite 203

       Spring Valley, CA 91777

All payments shall be subject to applicable withholding taxes, if any.

 

(e)    Licensee will maintain, and cause its sublicensees to maintain, complete and accurate books and records that enable all royalties payable under the Agreement to be verified. The records for each calendar quarter will be maintained for three (3) years after the submission of each quarterly activity report of Licensor. Each quarterly activity report shall be delivered to Licensor within forty-five (45) days after March 31, June 30, September 30, and December 31, beginning immediately after May 1, 2011 and detail the gross sales revenues for the fiscal quarters ending on the foregoing dates, which report shall be certified by the chief financial officer or similar officer of Licensee even if no payments are due Licensor, giving the particulars of the business conducted by Licensee its sublicensee. In addition, Licensor shall have the right, on an annual basis to request and receive technical information from Licensee sufficient to evidence whether and to what extent Licensee is practicing the claims of the Licensed Patents. Licensor shall have the right to make an enquiry in regard of such reports within 30 days following the receipt of such report and upon the expiry of 30 calendar days from the receipt of such report or 10 calendar days from the receipt of the explanation of any enquiry, such report or explanation shall be deemed to be acceptable and final.

         

 (f)    Upon prior notice to Licensee and its sublicensees, and at Licensor’s expense, Licensor or its representatives or its appointed accountants will have access to such books and records relating to gross sales as necessary to conduct a review or audit of gross sales and verify all royalty reports submitted and royalty payments. Such access will be available to Licensor upon not less than ten (10) days’ written notice to Licensee and its sublicensees, not more than once each calendar year of the Term, during normal business hours, and once a year for three years after the expiration or termination of the Agreement. If an audit of Licensee’s records indicates that Licensee has underpaid royalties by more than (i) three percent (3%), or (ii) five thousand dollars ($5,000), whichever is greater, for the records so audited, Licensee will pay the reasonable costs and expenses incurred by Licensor and its representatives and accountants, if any, in connection with the review or audit, and Licensee will immediately remit such royalties and any accrued interest to Licensor. Further, whenever Licensee and its sublicensees has its books and records audited by an independent certified public accountant, Licensee and its sublicensees will, within thirty (30) days of the conclusion of such audit, provide Licensor with a written statement, certified by said auditor, setting forth the calculation of royalties due to Licensor over the time period audited as determined from the books and records of Licensee.

  

  

Exhibit 10.1 --- Page 9

  

 

ARTICLE 4

PROTECTION OF THE LICENSOR’S

INTELLECTUAL PROPERTY

4.1  Licensee hereby acknowledges Licensor’s right, title and interest in the Intellectual Property relating to the Technology.

4.2  Licensee hereby acknowledges that all right, title, interest and goodwill relating to the Intellectual Property inure to Licensor.

4.3  Licensee hereby acknowledges that any rights subsequently acquired with respect to Licensor’s Intellectual Property or similar property is assigned to Licensor.

4.4  Licensee undertakes not to contest the validity of Licensor’s rights in the Intellectual Property.

4.5  Licensee agrees to take no actions which might impair or interfere with Licensor’s rights in the Intellectual Property.

4.6  Licensee agrees not to seek, independently of Licensor, any trade mark, copyright, patent, or industrial design registrations anywhere in connection with the Intellectual Property or similar property.

4.7  Licensee agrees not to adopt or use any property similar to the Intellectual Property during the Term of this Agreement and thereafter.

4.8  Licensee shall not associate or commingle the Intellectual Property with other intellectual property without the Licensor’s prior consent.

4.9   Licensee agrees not to use the Intellectual Property in an unauthorized manner and, in particular, not to use it in Licensee’s name or as a name or part of a name of any other corporate legal entity, except that Licensee, may elect to use the company name or part of the company name of Licensor in Licensee’s name, with the prior written consent of Licensor, which consent will not be unreasonably withheld.

4.10  Licensee acknowledges that the grant of License is subject to the terms of this Agreement, and a breach of this Agreement constitutes an infringement of the Licensor’s Intellectual Property.

4.11  Licensee agrees to affix notices indicating Licensor's ownership of Licensor's Intellectual Property on licensed products and all packaging, advertising, promotional and other materials bearing Licensor's Intellectual Property in such form as is requested by Licensor.

4.12  Licensee hereby acknowledges the uniqueness of the Intellectual Property, and the difficulty of assessing damages from the unauthorized use of the Intellectual Property and the propriety of injunctive relief.

4.13  Licensor represents and warrants to Licensee that it is the sole owner of the Intellectual Property and the Technology, that such Intellectual Property and Technology do not infringe on the intellectual property of any other person, and that all registrations with respect thereof are in good standing, valid and enforceable, and with support from Licensor, Licensee will, at its sole expense, take all reasonable steps to secure and protect the Intellectual Property and the Technology, including without limitation the defense of any claims against Licensee in relation to the Intellectual Property and the Technology, in accordance with agreement.

  

Exhibit 10.1 --- Page 10

  

4.14  Licensee and Licensor shall cooperatively use their commercially reasonable efforts to achieve procurement of trade mark, copyright and industrial design protection with respect to the Intellectual Property, as applicable, including cooperating in registered user application of such other applications or filings as are required to effect necessary trade mark, copyright, patent and industrial design protection at Licensee’s expense.

4.15  Licensee and Licensor shall immediately notify each other of all unauthorized uses, infringements, imitations and any other claims against the interests of Licensor and Licensee and assist each other in the enforcement of trade-mark, copyright, patent and industrial design protection relating to the Intellectual Property.

4.16  Each of Licensor and Licensee shall have the right, but not the obligation, to decide whether to take action against infringements and imitations or defend against any action with respect to the Intellectual Property, and Licensee shall cooperate in any such action or defense.

4.17  Licensor represents and warrants that it has the right to grant the License to Licensee in accordance with the terms of this Agreement.

4.18  Licensor represents and warrants that entering into this Agreement does not violate any rights or obligations existing between Licensor and any other entity.

4.19  Licensee and Licensor shall be required to use industry standard non-disclosure agreements or mutually acceptable non-disclosure agreements when dealing with third parties in order to safeguard and protect Intellectual Property.

ARTICLE 5

LICENSOR'S OBLIGATIONS

5.1  Licensor's Indemnity. Licensor will indemnify and save Licensee harmless from and against any and all reasonably foreseeable claims, causes of action, damages, awards, actions, suits, proceedings, demands, assessments, judgments, as well as any and all costs and legal and other expenses incidental to the foregoing, arising out of:

     

(a)  Any act, default or breach on the part of Licensor or its officers, employees, servants, agents and representatives under the terms of this Agreement; and

 

      (b)  Any claims of intellectual property infringement arising out of the commercialization of the Technology to the extent that the potential for such specific claims were actually known by the Licensor or should have been known and were not disclosed to Licensee; or to the extent expressly waived by Licensee in writing if such claims were disclosed to Licensee.

5.2  Compliance with Laws. Licensee will at all times during the Term fully comply with all laws, bylaws, regulations of any competent authority that affect or are likely to affect the due performance and observance of Licensee's obligations in this Agreement in the sale, distribution and use of the Licensed Products.

  

Exhibit 10.1 --- Page 11

  

ARTICLE 6

INTELLECTUAL PROPERTY

6.1  Ownership of Intellectual Property. Based on Licensor's representation and warranty provided in Section 10.1 as well as any future technology patents being granted, Licensee acknowledges that Licensor is the sole and beneficial proprietor of the Intellectual Property.

6.2  Use of Name. Use of name or other proprietary trade dress of Licensor or any of its subsidiaries by Licensee shall be subject to the prior written approval of Licensor or any of its subsidiaries.

6.3  No Copies. Except in furtherance of the research, development and commercialization of the Technology, Licensee shall not, and shall not authorize any sublicensee or third part to, copy, reverse engineer, decompile, disassemble, reconstruct, decrypt, modify, update, enhance, supplement, translate or adapt the Licensed Products and shall take all reasonable precautions so as not to allow other parties to do so.

6.4  Improvements. Any improvements to any Licensed Product or future products, regardless of the source, are the property of Licensor or any of its subsidiaries unless otherwise agreed in writing, and shall be communicated promptly to Licensor or any of its subsidiaries and will be licensed to Licensee for the Term of this Agreement as set forth in Section 2.9 hereof.

ARTICLE 7

REPRESENTATIONS, WARRANTIES AND COVENANTS

7.1  Licensor represents and warrants to Licensee that it is the sole owner of the Intellectual Property, that such Intellectual Property does not infringe on the Intellectual Property of any other person and at Licensee's expense, Licensee together with the cooperation of Licensor shall take all reasonable steps to secure and protect the Intellectual Property and the Technology, including without limitation the defense of any claims against the Licensee in relation to the Intellectual Property and the Technology.

7.2  To the knowledge of Licensor, there are no claims of any nature or description related to the Intellectual Property and all registrations with respect to the Intellectual Property are in good standing and are valid and enforceable.

7.3  Licensor agrees to use its best efforts to obtain all required patent and industrial design protection for the Intellectual Property not previously obtained.

7.4  Licensor will agree to maintain its intellectual property rights in the Technology free and clear of all liens and encumbrances and that no lien, encumbrance, mortgage or debt instrument of any kind, nature or description shall be incurred without the prior written consent of Licensee;

7.5  To the extent it shall not adversely affect the attorney-client relationship, Licensor shall ensure that any retention arrangement with any patent agent shall provide that Licensee shall at all times be copied on any correspondence with any patent office and that Licensee shall have free and unfettered access to the working files of such patent agent and may make such enquiries with the patent agent as is necessary for the maintenance of its continuous disclosure record with its shareholders and the making of any decision by Licensee for any payments hereunder;

  

Exhibit 10.1 --- Page 12

  

7.6  Licensor represents and warrants that it has the right to grant the License pursuant to the terms of this Agreement and that entering into this Agreement does not violate any rights or existing obligations between Licensor and any other entity.

7.7  Licensor represents and warrants that it is a limited liability company in good standing under the laws of the State of Delaware and has full authority to enter into this Agreement without any breach of its governing documents or any applicable law.

7.8  Licensee represents and warrants that it is a corporation in good standing under the laws of the State of Delaware and has full authority to enter into this Agreement without any breach of its governing documents or any applicable law.

ARTICLE 8

FORCE MAJEURE

8.1 Definition of Force Majeure. For the purpose of this Agreement, force majeure means any act, event or cause, except in relation to obligations to make payments under this Agreement, beyond the reasonable control of the party affected by that force majeure including, without limitation, any act of God or any public enemy, fire, flood, explosion, landslide, epidemic, breakdown of or damage to plant, equipment or facilities, inability to obtain or unavailability of or damage to materials, ingredients or supplies, strikes, labor disputes, war, sabotage, riot, insurrection, civil commotion, national emergency and martial law, expropriation, restraint, prohibition, embargo, decree or order of any government, governmental authority or court.

8.2 Notice of Force Majeure. A party (in this Agreement called the "Affected Party") will inform the other party in writing within seven days of becoming affected by any force majeure that has or is likely to have any substantial detrimental effect on the ability of the Affected Party to perform any or all of the terms and conditions contained in this Agreement and will give particulars of the force majeure and the likely duration of the force majeure and of any likely or resulting disability or effect of that force majeure.

8.3 Time for Performance. The time for performance of the obligations of an Affected Party will be extended for the period of the force majeure if appropriate.

ARTICLE 9

TERMINATION

9.1  Termination on Default.  If any of the Parties are in breach or default of the terms or conditions contained in this Agreement and do not rectify or remedy that breach or default within 90 days from the date of receipt of notice by the other party requiring that default or breach to be remedied, then the other party may give to the party in default a notice in writing terminating this Agreement but without, in any way, limiting or affecting the rights or liabilities of the parties or either of them that have accrued to the date of termination.  However, the party to whom notice of default has been delivered shall have the right to contest the termination in a court of law and any such termination shall not become effective until a final decision has been rendered by a court of competent jurisdiction that the alleged breach is actual and that the party to which a notice of default has been delivered, has not effectively cured the default.

  

Exhibit 10.1 --- Page 13

  

9.2  Optional Termination by Licensee. Licensee may, at its option, terminate this Agreement at anytime by doing the following:

    

(a)           by ceasing to use the Technology and offer the services facilitated by any Licensed Products;

     

(b)           by giving sixty (60) days prior written notice to Licensor of such cessation and of Licensee’s intent to terminate, and upon receipt of such notice, Licensor may immediately begin negotiations with other potential licensees and all other obligations of Licensee under this Agreement will continue to be in effect until the date of termination;

     

(c)           tendering payment of all accrued royalties and other payments due to Licensor as of the date of the notice of termination; and

(d)           evidencing to the Licensor that provision has been made for any prospective royalties and other payments to which Licensor may be entitled after the date of termination.

9.3  Partial Termination by the Licensor.  Notwithstanding Section 10.1, if Licensee is in breach or default of the terms or conditions contained in this Agreement and does not rectify or remedy that breach or default within 90 days from the date of receipt of notice by Licensor requiring that default or breach to be remedied, then Licensor, may alter License granted by this Agreement with regards to its exclusivity, its territorial application and restrictions on its application.

9.4  Termination in Other Events.  Without in any way limiting any other provision of this Agreement, either Licensor or Licensee may terminate this Agreement by notice in writing to the other if an order is made by a court or other competent authority for the winding up or dissolution of Licensee.

9.5  Survival. Upon the termination of this Agreement:

	
  

	
(a)

	
Licensee will immediately cease use of the Intellectual Property; provided however, after the effective date of termination, Licensee may sell all Licensed Products and parts thereof that it has on hand at the effective date of termination; provided, however, that Licensee’s royalty obligations will continue until all Licensed Products have been sold;

	
  

	
(b)

	
Nothing in this Agreement will be construed to release either party from any obligation that matured prior to the effective date of termination; and

	
  

	
(c)

	
The provisions of Articles 5, 6, 7 and 8 shall survive any termination or expiration of this Agreement

ARTICLE 10

GENERAL

10.1  Notices. All notices or other communications required or permitted to be given under this Agreement must be in writing and delivered by e-mail, courier or facsimile to the address for each party as specified above or in the case of delivery by facsimile, as follows:

  

Exhibit 10.1 --- Page 14

  

	
If to Licensee:

	
          

	  
	  	
Accelerated Acquisitions XI, Inc.

	
          

	
1840 Gateway Drive, Suite 200

	
 

	
Foster City, CA 94404

	
           

	  
	
      

	
Attention: Daniel Correa PhD.

	
          

	  
	
   

	
Facsimile: 650-378-1232  

	
    

	
E-mail:   dcorrea@incaglobal.com  

	
     

	  
	
If to Licensor:  

	  	  
	
          

	
Eco Global Corporation

	
          

	
123 Worthington St. Suite 203

	
 

	
Spring Valley, CA 91777          

 

Any party may designate a substitute address for the purpose of this section by giving written notice in accordance with this section. Any notice delivered in this fashion will be deemed to have been given when it is actually received.

10.2  Time of Essence. Time is of the essence of this Agreement.

10.3  Further Assurances. Each of the parties hereby covenants and agrees that at any time and from time to time it will, upon the request of the other party, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be required for the better carrying out and performance of all the terms of this Agreement.

10.4  Each party recognizes that the employees of the other party, and such employees' loyalty and service to such party, constitute a valuable asset of such party. Accordingly, each party agrees not to make any offer of employment to, nor enter into a consulting relation with, any person who was employed by the other party within three years after the cessation of such person's employment by the other party.

10.5  Subject to the limitations hereinbefore expressed, this Agreement will inure to the benefit of and be binding upon the parties and their respective successors and assigns.

  

Exhibit 10.1 --- Page 15

  

10.6  There are no oral conditions, representations, warranties, undertakings or agreements between Licensor and Licensee. No modifications to this Agreement will be binding unless executed in writing by the parties. No waiver of any provision of this Agreement will be construed as a waiver of any other provision hereof nor shall such a waiver be construed as a continuing waiver. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together constitute one and the same instrument. This Agreement will be governed by the laws of the State of Delaware. Unless otherwise stated, all dollar amounts referred herein shall be in the lawful currency of the United States. If any clause or provision of this Agreement is declared invalid or unenforceable, the remainder of this Agreement will remain in full force and effect. Headings used in this Agreement are for reference purposes only and will not be deemed to be a part of this Agreement. This Agreement will not be construed as creating a partnership, joint venture or agency relationship between the parties or any other form of legal association which would impose liability upon one party for any act or failure to act by the other party.

 

IN WITNESS WHEREOF the following parties have executed this Agreement:

 

       /s/ Daniel D. Correa PhD.

By:  Daniel D. Correa PhD., Director

 

 

ECO GLOBAL, CORP.

       /s/ Harry Elliott

By:  Harry Elliott, CEO 

 

 

 

 

 

 

Exhibit 10.1 --- Page 16Exhibit 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:
    	
Base   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:
    	
 
    	
75,000.  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   10,175,795
    
	
 
    	
 
    	
 
    
	
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 the number of Convertible Notes in denominations of USD   1,000 as to which such Conversion Date has occurred 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 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
    

 

3

 

	
 
    	
 
    	
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.
    
	
 
    	
 
    	
 
    
	
Relevant Settlement Method:
    	
 
    	
In respect of any Option, subject to the   Settlement Method Election Conditions:
    

 

4

 

	
 
    	
 
    	
(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”);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii) a representation that   Counterparty has not entered into or altered any hedging transaction relating   to the Shares corresponding to or offsetting the Transaction;
    

 

5

 

	
 
    	
 
    	
(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 (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 
    

 

6

 

	
 
    	
 
    	
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.
    
	
 
    	
 
    	
 
    
	
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 
    

 

7

 

	
 
    	
 
    	
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.
    
	
 
    	
 
    	
 
    
	
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
    

 

8

 

	
 
    	
 
    	
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”)).
    
	
 
    	
 
    	
 
    
	
3.                                      Additional Terms applicable to the Transaction.
    
	
 
    	
 
    	
 
    
	
Adjustments applicable to the   Transaction:
    	
 
    	
 
    

 

9

 

	
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 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
    

 

10

 

	
 
    	
 
    	
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
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii) Section 12.9(b)(iii) of   the Equity Definitions is hereby amended by inserting in the third line   thereof,  after the 
    

 

11

 

	
 
    	
 
    	
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.

 

(b)                                 The Office of Dealer for the Transaction is: London

 

UBS AG, London Branch
 c/o UBS Securities LLC
 299 Park Avenue

 

12

 

	
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.

 

(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

 

13

 

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 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

 

14

 

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);

 

(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

 

15

 

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 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

 

16

 

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.

 

(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

 

17

 

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 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

 

18

 

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.

 

(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

 

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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.
    
	
 
    	
 
    
	
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
    

 

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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.

 

(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

 

21

 

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)).

 

(t)                                    Early Unwind. In the event the sale of the “Firm 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

 

22

 

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/ Gordon S.   Kiesling
    
	
 
    	
 
    	
Name:
    	
Gordon S. Kiesling
    
	
 
    	
 
    	
Title:
    	
Executive Director   and Counsel 

Region Americas   Legal
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ David Kelly
    
	
 
    	
 
    	
Name:
    	
David Kelly
    
	
 
    	
 
    	
Title:
    	
Managing 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 Ingram
    	
 
    
	
Name:
    	
Peter R. Ingram
    	
 
    
	
Title:
    	
Executive Vice President and Chief   Financial Officer

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