Document:

Exhibit 10.1

 

	
 
    	
[Insert   Dealer Letterhead]
    

 

	
DATE:
    	
August [2][3], 2016
    	
 
    
	
 
    	
 
    	
 
    
	
TO:
    	
DISH Network Corporation
    	
 
    
	
 
    	
9601 South Meridian Boulevard
    	
 
    
	
 
    	
Englewood, CO 80112
    	
 
    
	
ATTENTION:
    	
[                      ]
    	
 
    
	
TELEPHONE:
    	
[                      ]
    	
 
    
	
FACSIMILE:
    	
[                      ]
    	
 
    
	
 
    	
 
    	
 
    
	
FROM:
    	
[Dealer]
    	
 
    
	
 
    	
 
    	
 
    
	
SUBJECT:
    	
[Base][Additional] Note Hedge Transaction
    	
 
    

 

The purpose of this agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between [Dealer] (“Dealer”) and DISH Network Corporation (“Counterparty”) on the Trade Date specified below (the “Transaction”).  This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  This Confirmation constitutes the entire agreement and understanding of the parties with respect to the subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and oral communications with respect thereto.

 

[Insert Dealer agency statement, if applicable][Insert Statement that Dealer is not a member of the Securities Investor Protection Corporation, if applicable]

 

The definitions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation.  In the event of any inconsistency between the Equity Definitions and the terms of this Confirmation, the terms of this Confirmation shall govern, and in the event of any inconsistency between either the Equity Definitions or this Confirmation and the Agreement (as defined below), the Equity Definitions or this Confirmation, as the case may be, shall govern.  For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of this Confirmation, the Agreement or the Equity Definitions shall not be construed to exclude or limit the application of any other provision of this Confirmation, the Agreement or the Equity Definitions.  For the purposes of the Equity Definitions, each reference herein to a Note Hedging Unit shall be deemed to be a reference to a Call or an Option, as the context requires.

 

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 (the “Agreement”) in the form of the ISDA 2002 Master Agreement as if Dealer and Counterparty had executed an agreement in such form (without any Schedule except for (i) the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine), (ii) the election of USD as the Termination Currency and (iii) the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Dealer, with a “Threshold Amount” of 3% of the shareholders’ equity of [Dealer][Dealer’s ultimate parent] (provided that (a) the phrase “, or becoming capable at such time of being declared,” shall be deleted from clause (1) of such Section 5(a)(vi) of the Agreement, (b) “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement[, except that such term shall not include obligations in respect of deposits received in the ordinary course of Dealer’s banking business] and (c) the following language shall be added to the end of Section 5(a)(vi) of the Agreement: “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission of an administrative or operational nature, (y) funds were available to enable the relevant party to make the payment when due and (z) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.”).  The Transaction shall be the only transaction under the Agreement.

 

The Transaction shall be considered a Share Option Transaction for purposes of the Equity Definitions, and shall have the following terms:

 

 

	
General:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Trade Date:
    	
 
    	
August [2][3], 2016.
    
	
 
    	
 
    	
 
    
	
Effective Date:
    	
 
    	
The closing date for the initial issuance of the   Convertible Notes.
    
	
 
    	
 
    	
 
    
	
Transaction Style:
    	
 
    	
Modified American, as described below under   “Procedure for Exercise”.
    
	
 
    	
 
    	
 
    
	
Transaction Type:
    	
 
    	
Note Hedging Units.
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Dealer.
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty.
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The Class A common stock, par value USD 0.01   per share, of Counterparty.
    
	
 
    	
 
    	
 
    
	
Convertible Notes:
    	
 
    	
3.375% Convertible Notes of Counterparty due   August 15, 2026, offered pursuant to an Offering Memorandum to be dated   as of August 2, 2016 and issued pursuant to the indenture to be dated August 8,   2016, by and between Counterparty and U.S. Bank National Association, as   trustee (the “Indenture”), excluding any such   notes beneficially owned by Counterparty or its subsidiaries. References   herein to the Indenture refer to the draft of the Indenture most recently   reviewed by the parties at the time of execution of this Confirmation. If any   relevant sections of the Indenture are changed, added or renumbered upon   execution of the Indenture, the parties will amend this Confirmation in good   faith to preserve the economic intent of the parties. Subject to the   foregoing, references herein to the Indenture shall be to the Indenture as   executed, without giving effect to any amendment, supplement or modification   thereto other than, subject to the provision set forth under “Settlement   Amount” below relating to Counterparty Determinations, a Merger Supplemental   Indenture (as defined below). If any amendment or supplement is made to the   Indenture following execution thereof (other than pursuant to a Merger   Supplemental Indenture) (x) the Calculation Agent shall determine the   relevant Settlement Amount and Settlement Date for any Note Hedging Unit   exercised thereafter in accordance with this Confirmation by referring to the   relevant provisions of the Indenture without giving effect to such amendment   or supplement, and (y) such supplement or amendment shall be disregarded   for all other purposes hereunder. Terms in quotation marks that are not   otherwise defined in this Confirmation shall have the meanings set forth in   the Indenture, unless the context requires otherwise.
    

 

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Number of Note Hedging Units:
    	
 
    	
[        ](1),   as reduced by any Note Hedging Units exercised hereunder.
    
	
 
    	
 
    	
 
    
	
Applicable Percentage:
    	
 
    	
[        ]%
    
	
 
    	
 
    	
 
    
	
Note Hedging Unit Entitlement:
    	
 
    	
15.3429.
    
	
 
    	
 
    	
 
    
	
Strike Price:
    	
 
    	
USD1,000 divided by   the Note Hedging Unit Entitlement (which equals approximately USD 65.18).
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
As provided in Annex A to this Confirmation.
    
	
 
    	
 
    	
 
    
	
Premium Payment Date:
    	
 
    	
The Effective Date.
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The NASDAQ Global Select Market.
    
	
 
    	
 
    	
 
    
	
Related Exchanges:
    	
 
    	
All Exchanges.
    
	
 
    	
 
    	
 
    
	
Calculation Agent:
    	
 
    	
Dealer; provided   that, following the occurrence and during the continuance of an Event of   Default of the type described in Section 5(a)(vii) of the Agreement   with respect to which Dealer is the sole Defaulting Party, Counterparty shall   have the right to designate a nationally recognized independent equity   derivatives dealer to replace Dealer as the Calculation Agent, and the   parties shall work in good faith to execute any appropriate documentation   required by such replacement Calculation Agent.

 

Following any adjustment, determination or   calculation by the Calculation Agent or Determining Party hereunder, upon a   written request by Counterparty (which may be by email), the Calculation   Agent or Determining Party, as the case may be, will promptly (but in any   event within three Scheduled Trading Days) provide to Counterparty by email   to the email address provided by Counterparty in such written request a   report (in a commonly used file format for the storage and manipulation of   financial data) displaying in reasonable detail the basis for such   adjustment, determination or calculation (including any assumptions used in   making such adjustment, determination or calculation), it being understood   that in no event will Dealer be obligated to share with Counterparty any   proprietary or confidential data or information or any proprietary or   confidential models used by it in making such adjustment, determination or   calculation.
    
	
 
    	
 
    	
 
    
	
Procedure for Exercise:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Potential Exercise Dates:
    	
 
    	
Each Conversion Date.
    

 

(1) To be: the aggregate principal amount of Convertible Notes issued on the original closing date (in the case of the Base Note Hedge Confirmation) or upon exercise of the option to purchase additional Convertible Notes (in the case of the Additional Note Hedge Confirmation), divided by USD 1,000

 

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Conversion Date:
    	
 
    	
Each “Conversion Date.”
    
	
 
    	
 
    	
 
    
	
Required Exercise on Conversion Dates:
    	
 
    	
On each Conversion Date, a number of Note Hedging   Units equal to [(i)] the number of Convertible Notes in denominations of   USD1,000 principal amount submitted for conversion in respect of such   Conversion Date in accordance with the terms of the Indenture [minus (ii) the number of Note Hedging Units that are   or are deemed to be automatically exercised on such Conversion Date under the   Base Note Hedge Transaction Confirmation dated August 2, 2016 between   Dealer and Counterparty (the “Base Note Hedge   Confirmation”),](2) shall be exercised automatically, subject   to “Notice of Exercise” below; provided that   in no event will the number of Note Hedging Units exercised or deemed   exercised hereunder exceed the Number of Note Hedging Units. For the   avoidance of doubt, if the immediately preceding sentence would result in the   exercise of a fraction of a Note Hedging Unit on any day, the number of   Shares and/or amount of cash deliverable in respect of such portion of a Note   Hedging Unit shall be equal to the product of such fraction and the   Settlement Amount applicable to a full Note Hedging Unit exercised on such   day.
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
August 15, 2026.
    
	
 
    	
 
    	
 
    
	
Multiple Exercise:
    	
 
    	
Applicable, as provided under “Required Exercise on   Conversion Dates”.
    
	
 
    	
 
    	
 
    
	
Automatic Exercise:
    	
 
    	
As provided under “Required Exercise on Conversion   Dates”.
    
	
 
    	
 
    	
 
    
	
Notice of Exercise:
    	
 
    	
Notwithstanding anything to the contrary herein or   in the Equity Definitions, in order to exercise any Note Hedging Units,   Counterparty (or the Trustee under the Indenture or any other agent   authorized by Counterparty; provided that   (i) Dealer shall only accept notices from the Trustee or such agent if   Counterparty has notified Dealer in writing of such person’s authority to act   on behalf of Counterparty and (ii) subject to clause (i), Dealer may   rely on notices received from the Trustee or such agents without independent   verification of the information in such notices) must (x) notify Dealer   in writing (which, for the avoidance of doubt, may be by email) and   (y) confirm receipt by telephone at the telephone number included in Dealer’s   contact information set forth in this Confirmation (or such other telephone   number as provided by Dealer to Counterparty), in each case, prior to 5:00   PM, New York City time, on or before the “Scheduled Trading Day” immediately   preceding the first day of the “Observation Period” relating to the   Convertible Notes converted on the Conversion Date relating to the relevant   Exercise Date (or, if “Physical Settlement” is applicable or “Combination   Settlement” is applicable and the applicable “Specified Dollar Amount” is   less than USD 1,000, the day that is two “Scheduled Trading Days” prior to   the Extended Observation Period) (the “Notice 
    

 

(2) Insert for Additional Note Hedge Confirmation only.

 

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Deadline”) of:

 

(i) the number of   Note Hedging Units being exercised on such Exercise Date,

 

(ii) if   applicable, the scheduled commencement date of the “Observation Period” and   the scheduled settlement date under the Indenture for the Convertible Notes   converted on the Conversion Date corresponding to such Exercise Date, and

 

(iii) the   “Settlement Method” elected or deemed elected with the applicable “Specified   Dollar Amount” in the case of “Combination Settlement”; provided that if Counterparty fails to timely provide the   notice described in this clause (iii) or does not, in such notice, make   the representation set forth under “No Material Non-Public Information” as of   the date Counterparty delivers such notice, the “Settlement Method” shall be   deemed to be “Combination Settlement” and the “Specified Dollar Amount” shall   be deemed to be USD 1,000 for purposes of calculating the Settlement Amount   (as defined below) and, in the case of any such actual or deemed election,   Counterparty agrees that it will settle the relevant Convertible Notes using   the “Settlement Method” and, in the case of “Combination Settlement,” the   “Specified Dollar Amount” that are applicable hereunder; provided,   further, that, notwithstanding the foregoing, a Notice of Exercise   shall be effective if given after the applicable Notice Deadline specified   above but prior to 5:00 P.M., New York City time, on the fifth Exchange   Business Day following such Notice Deadline, in which event the Calculation   Agent shall have the right to adjust Dealer’s payment and/or delivery   obligation hereunder, with respect to such exercise of Note Hedging Units, as   appropriate to reflect the additional actual out-of-pocket costs (including,   but not limited to, losses actually incurred as a result of hedging   mismatches and actual market losses) and reasonable and documented   out-of-pocket expenses actually incurred by Dealer or any of its affiliates   in connection with its hedging activities (including the unwinding of any   Hedge Position) as a result of it not having received such notice prior to   such Notice Deadline (it being understood that the adjusted payment and/or   delivery obligation described in the preceding proviso   can never be less than zero and can never require any payment or delivery by   Counterparty).

 

Notwithstanding the   foregoing, in respect of Convertible Notes with a Conversion Date during the   period beginning on, and including March 15, 2026 and ending at the   close of business on the second “Scheduled Trading Day” immediately preceding   the “Maturity Date”:

 

(x) the Notice   Deadline in respect of the information set forth in clause (i) above   shall be 5:00 PM, New York City time, on the “Scheduled Trading Day”   immediately preceding the “Maturity Date,”
    

 

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(y) the Notice of   Exercise need not include the information set forth in clause   (ii) above, and

 

(z) the Notice   Deadline in respect of the information set forth in clause (iii) above   shall be 5:00 PM, New York City time, on March 15, 2026.

 

For the avoidance of doubt, if Counterparty fails to   give a Notice of Exercise when due in respect of any exercise of Note Hedging   Units hereunder as set forth above, Dealer’s obligation to make any payment   or delivery in respect of such exercise shall be permanently extinguished,   and late notice shall not cure such failure.
    
	
 
    	
 
    	
 
    
	
Settlement Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Settlement:
    	
 
    	
In lieu of the obligations set forth in Sections 8.1   and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above,   in respect of any validly exercised Note Hedging Unit, Dealer shall deliver   to Counterparty, on the related Settlement Date, the Settlement Amount.

 

For the avoidance of doubt, to the extent Dealer is   obligated to deliver Shares hereunder, the provisions of Sections 9.8, 9.9,   9.11 and 9.12 of the Equity Definitions shall be applicable to any such   delivery of Shares, except that all references in such provisions to   “Physical Settlement” and “Physically-settled” shall be read as references to   “Share Settlement” and “Share Settled”; and provided   that the Representation and Agreement contained in Section 9.11 of the   Equity Definitions shall be modified by excluding any representations therein   relating to restrictions, obligations, limitations or requirements under   applicable securities laws. “Share Settlement”   means settlement of a Note Hedging Unit pursuant to clause (a) or   (b) under “Settlement Amount” below, and “Share   Settled” has a meaning correlative thereto.
    
	
 
    	
 
    	
 
    
	
Settlement Amount:
    	
 
    	
The Applicable Percentage of the aggregate of the   number of Shares and/or amount of cash in USD for each Convertible Note in   principal amount of USD 1,000 converted on such Conversion Date, with such   Applicable Percentage of the aggregate of the number of Shares and/or amount   of cash determined as follows:

 

(a)                                 if   (x) “Combination Settlement” is applicable and the applicable “Specified   Dollar Amount” is less than USD 1,000 or (y) “Physical Settlement” is   applicable, a number of shares equal to the sum, for each of the 90   consecutive “VWAP Trading Days” commencing on the earlier of the third   “Scheduled Trading Day” immediately following such Conversion Date and the   95th “Scheduled Trading Day” prior to the “Maturity Date” (such period, the “Extended Observation Period”), of the product of   (x) the Applicable Percentage and (y) (A) the excess, if any,   of (X) 1/90th of the product of the “Conversion Rate” on such “VWAP   Trading Day” and the “Daily
    

 

6

 

	
 
    	
 
    	
VWAP” (determined by the Calculation Agent in   accordance with the Indenture) on such “VWAP Trading Day” over (Y) USD   1,000 divided by 90, divided by   (B) such “Daily VWAP”;

 

(b)                                 if “Combination   Settlement” is applicable and the applicable “Specified Dollar Amount” is   greater than or equal to USD 1,000,

 

(1) a number of   shares equal to the sum, for each “VWAP Trading Day” during the related   “Observation Period,” of the greater of (i) a number of Shares equal to   the product of (x) the Applicable Percentage and (y) (A) the   excess, if any, of the “Daily Conversion Value” on such “VWAP Trading Day”   over the “Daily Measurement Value” on such “VWAP Trading Day”, divided by (B) the “Daily VWAP” for such “VWAP   Trading Day” and (ii) zero, and

 

(2) an amount of   cash equal to the sum, for each “VWAP Trading Day” during the related   “Observation Period”, of the product of (x) the Applicable Percentage   and (y) the excess, if any, of (i) the lesser of the “Daily   Conversion Value” on such “VWAP Trading Day” and the “Daily Measurement   Value” on such “VWAP Trading Day,” over (ii) USD 1,000 divided by 45; or

 

(c)                                   if “Cash   Settlement” is applicable, an amount of cash equal to the sum, for each “VWAP   Trading Day” during the related “Observation Period”, of the product of   (x) the Applicable Percentage and (y) the excess, if any, of   (i) the “Daily Conversion Value” on such “VWAP Trading Day” over   (ii) USD 1,000 divided by   45;

 

Following the occurrence of any Merger Event in   which the holders of Shares receive only cash, the Settlement Amount in   respect of any Note Hedging Unit exercised thereafter shall consist of the   Applicable Percentage of an amount of cash equal to the excess, if any, of   (i) the product of the “Conversion Rate” (determined without giving   effect to any Fundamental Change Adjustment or any Discretionary Adjustment   as defined below) and the amount of cash received by a holder of one Share in   such Merger Event over (ii) USD 1,000, in lieu of any Settlement Amount   determined above, which Settlement Amount shall be payable on the tenth   “Business Day” following the applicable Exercise Date.

 

Dealer will deliver cash in lieu of any fractional   Shares based on (i) the “Daily VWAP” on the last “VWAP Trading Day” of   the applicable “Observation Period” or the last “VWAP Trading Day” of the   applicable Extended Observation Period, as the case may be and (ii) the   aggregate number of Note Hedging Units exercised on any Exercise Date.

 

In addition, and notwithstanding anything to the   contrary herein:
    

 

7

 

	
 
    	
 
    	
(i) the Settlement   Amount shall be determined by the Calculation Agent excluding any increase to   the “Conversion Rate” pursuant to Section 14.03 of the Indenture (a “Fundamental Change Adjustment”) or any voluntary   adjustment to the “Conversion Rate” pursuant to Section 14.04(h) of   the Indenture (a “Discretionary Adjustment”);   and

 

(ii) if   Counterparty or its board of directors is permitted or required to exercise   discretion under the terms of the Indenture with respect to any   determination, calculation or adjustment (including, without limitation, any   adjustment under Section 14.05 of the Indenture, any adjustment to the   terms of the Convertible Notes following a Merger Event pursuant to   Section 14.07 of the Indenture or any determination of the fair market   value of distributed property, the volume weighted average price of Shares or   the value of a “Unit of Reference Property”) (any such determination,   calculation or adjustment, a “Counterparty   Determination”), Counterparty shall consult with Dealer with   respect thereto and, if the Calculation Agent acting in good faith and in a   commercially reasonable manner disagrees with any such determination,   calculation or adjustment that is the basis of any adjustment hereunder and   that involves an exercise of discretion by Counterparty or its board of   directors, notwithstanding anything herein to the contrary, the Calculation   Agent shall make such determination, calculation or adjustment for purposes   of the Transaction in good faith and in a commercially reasonable manner.

 

Notwithstanding anything to the contrary in clause   (a) immediately above (and without limiting amounts payable or   deliverable pursuant to clauses (b) and (c) immediately above), in   no event shall the sum of (x) the product of the number of Shares   delivered in respect of a Note Hedging Unit and the Applicable Limit Price on   the Settlement Date for such Note Hedging Unit and (y) the amount of   cash paid in respect of any Note Hedging Unit (including any cash in lieu of   any fractional Share), exceed the Applicable Limit for such Note Hedging   Unit.

 

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 “Relevant Stock Exchange” to open for   trading during its regular trading session or (ii) the occurrence or   existence prior to 1:00 p.m. (New York City time) on any “Scheduled   Trading Day” for the Shares for more than one half-hour period in the   aggregate during regular trading hours of any suspension or limitation   imposed on trading (by reason of movements in price exceeding limits   permitted by the “Relevant Stock Exchange” or otherwise) in the Shares or in   any options contracts or futures contracts relating to the Shares.”
    
	
 
    	
 
    	
 
    
	
Applicable Limit:
    	
 
    	
For any exercised Note Hedging Unit, an amount in   USD equal to the product of the Applicable Percentage and the excess of   (i) the sum of 
    

 

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(A) the amount of cash, if any, paid to the   holder of USD 1,000 principal amount of Convertible Notes converted on the   related Conversion Date and (B) the product of (x) the number of   Shares, if any, delivered to the holder of USD 1,000 principal amount of   Convertible Notes converted on the related Conversion Date and (y) the   Applicable Limit Price on the applicable Settlement Date over (ii) USD   1,000.
    
	
 
    	
 
    	
 
    
	
Applicable Limit Price:
    	
 
    	
On any day, the opening price of one Share as   displayed under the heading “Op” on Bloomberg page “DISH <equity>“   (or any successor thereto).
    
	
 
    	
 
    	
 
    
	
Notice of Delivery Obligation:
    	
 
    	
No later than the “Scheduled Trading Day”   immediately following the last day of the relevant “Observation Period,”   Counterparty shall give Dealer notice of the final number of Shares and/or   the amount of cash that Counterparty is required to deliver to holders of the   relevant Convertible Notes (the “Convertible Obligation”)   (it being understood that (i) Counterparty may provide a single such   notice of the aggregate Convertible Obligation for all Convertible Notes   converted on or after March 15, 2026 and (ii) for the avoidance of   doubt, the requirement of Counterparty to deliver such notice shall not limit   Counterparty’s obligations with respect to “Notice of Exercise,” as set forth   above, in any way).
    
	
 
    	
 
    	
 
    
	
Settlement Date:
    	
 
    	
In respect of an Exercise Date, (i) the   settlement date for the Shares or cash to be delivered under the Convertible   Notes converted on the corresponding Conversion Date under the terms of the   Indenture or (ii) if clause (a) under “Settlement Amount” above   applies to such Exercise Date, the date that falls one Settlement Cycle   following the end of the applicable Extended Observation Period.
    
	
 
    	
 
    	
 
    
	
Settlement Currency:
    	
 
    	
USD.
    
	
 
    	
 
    	
 
    
	
Restricted Certificated Shares:
    	
 
    	
Notwithstanding anything to the contrary in the   Equity Definitions, Dealer may, in whole or in part, deliver Shares in   certificated form representing the Share portion of the Settlement Amount to   Counterparty in lieu of delivery through the Clearance System.
    
	
 
    	
 
    	
 
    
	
Share Adjustments:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Potential Adjustment Events:
    	
 
    	
Notwithstanding Section 11.2(e) of the   Equity Definitions, a “Potential Adjustment Event” means any occurrence of   any event or condition, as set forth in Sections 14.04(a), (b), (c),   (d) or (e), or 14.05 of the Indenture, that would result in an   adjustment under the Indenture to the “Conversion Rate” or any other term of   the Convertible Notes; provided that   in no event shall there be any adjustment hereunder as a result of a   Fundamental Change Adjustment or a Discretionary Adjustment.

 

For the avoidance of doubt, Dealer shall not have   any delivery or 
    

 

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payment obligation hereunder , and no adjustment   shall be made to the terms of the Transaction, on account of (i) any   distribution of cash, property or securities by Counterparty to holders of   the Convertible Notes (upon conversion or otherwise) or (ii) any other   transaction in which holders of the Convertible Notes are entitled to   participate, in each case, in lieu of an adjustment under the Indenture of   the type referred to in the immediately preceding sentence (including,   without limitation, pursuant to the fourth sentence of   Section 14.04(c) of the Indenture or the fourth sentence of   Section 14.04(d) of the Indenture).
    
	
 
    	
 
    	
 
    
	
Method of Adjustment:
    	
 
    	
Calculation Agent Adjustment, which means that,   notwithstanding Section 11.2(c) of the Equity Definitions, upon any   Potential Adjustment Event (excluding, for the avoidance of doubt, any   Fundamental Change Adjustment or Discretionary Adjustment), the Calculation   Agent shall make a corresponding adjustment in respect of any adjustment   under the Indenture to any one or more of the Strike Price, the Note Hedging   Unit Entitlement, the composition of the Shares and any other variable   relevant to the exercise, settlement, payment or other terms of the   Transaction (other than the Number of Note Hedging Units) (subject to the   provisions set forth under “Settlement Amount” above in respect of any   Counterparty Determination); provided   that, notwithstanding the foregoing, if any Potential Adjustment Event occurs   during an Observation Period or Extended Observation 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 acting in good faith and in a commercially reasonable   manner shall make an adjustment, as determined by it, to the terms hereof in   order to account for such Potential Adjustment Event. In addition, if any   Potential Adjustment Event, or the effective date, “Expiration Date” or   “Ex-Dividend Date” for such an event, occurs during an Extended Observation   Period, the Calculation Agent may make such further adjustments as it   determines appropriate to the Settlement Amount for the relevant Note Hedging   Units (subject to the provisions above relating to the Applicable Limit).
    
	
 
    	
 
    	
 
    
	
Extraordinary Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Merger Events:
    	
 
    	
Notwithstanding Section 12.1(b) of the   Equity Definitions, a “Merger Event” means the occurrence of any “Share   Exchange Event” as set forth in Section 14.07 of the Indenture.
    
	
 
    	
 
    	
 
    
	
Notice of Merger Consideration:
    	
 
    	
In respect of any Merger Event, Counterparty shall   notify the Calculation Agent of (i) if applicable, the weighted average   of the kind and amounts of consideration to be received by the holders of   Shares in any Merger Event who affirmatively make such an election and   (ii) the details of the adjustments made under the Indenture in respect   of such Merger Event, in each case, immediately upon determination thereof 
    

 

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(and in any event prior to the effective date of the   Merger Event), and Counterparty shall deliver to Dealer a copy of the   supplemental indenture effecting such adjustments (a “Merger   Supplemental Indenture”) as reasonably as practicable following   execution thereof.
    
	
 
    	
 
    	
 
    
	
Consequences of Merger Events:
    	
 
    	
Notwithstanding Section 12.2 of the Equity   Definitions, upon the occurrence of a Merger Event, the Calculation Agent   shall make the corresponding adjustment in respect of any adjustment under   the Indenture to any one or more of the nature of the Shares, the Strike   Price, the Note Hedging Unit Entitlement, the Settlement Date and any other   variable relevant to the exercise, settlement or payment or other terms of   the Transaction (other than the Number of Note Hedging Units) to the extent   an analogous adjustment is required to be made pursuant to the Indenture in   connection with such Merger Event (subject to the provisions set forth under   “Settlement Amount” above in respect of any Counterparty Determination); provided that such adjustment shall be made without regard   to any Fundamental Change Adjustment or any Discretionary Adjustment; and provided further that the Calculation Agent may limit or   alter any such adjustment referenced in this paragraph to preserve the   intended economic benefits of the Transaction; and provided   further that if, with respect to a Merger Event, (i) the   consideration for the Shares includes (or, at the option of a holder of   Shares, may include) shares (or depositary receipts with respect to 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) Counterparty following such Merger Event will not be a corporation   organized under the laws of the United States, any State thereof or the District   of Columbia or will not be either (x) the Issuer following such Merger   Event or (y) a wholly-owned subsidiary of the Issuer following such   Merger Event (which subsidiary shall be a corporation that is organized under   the laws of the United States, any State thereof or the District of Columbia)   whose obligations under the Transaction are fully and unconditionally   guaranteed by such Issuer, Cancellation and Payment (Calculation Agent   Determination) may apply at Dealer’s sole election.
    
	
 
    	
 
    	
 
    
	
Nationalization, Insolvency and 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 shall 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 such exchange or   quotation system, such exchange or quotation system shall thereafter be   deemed to be the Exchange.
    

 

11

 

	
Additional Disruption Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Change in Law:
    	
 
    	
Applicable; provided   that Section 12.9(a)(ii) of the Equity Definitions is hereby   amended (i) by inserting the parenthetical “(including, for the   avoidance of doubt and without limitation, the effectiveness, adoption or   promulgation of new regulations authorized or mandated by existing statute)”   at the end of clause (A) thereof; (ii) by the replacement of the   word “Shares” with “Hedge Positions” in clause (X) thereof;   (iii) by adding the phrase “or announcement” immediately after the   phrase “due to the promulgation” in the third line thereof and adding the   phrase “formal or informal” before the word “interpretation” in the same   line, (iv) immediately following the word “Transaction” in clause   (X) thereof, adding the phrase “in the manner contemplated by the   Hedging Party on the Trade Date”; and (v) adding the words “provided that, in the case of clause (Y) hereof and   any law, regulation or interpretation, the consequence of such law,   regulation or interpretation is applied in the same manner by Dealer to all   of its similarly situated counterparties and/or similar transactions” after   the semi-colon in the last line thereof.
    
	
 
    	
 
    	
 
    
	
Failure to Deliver:
    	
 
    	
Not Applicable.
    
	
 
    	
 
    	
 
    
	
Insolvency Filing:
    	
 
    	
Applicable.
    
	
 
    	
 
    	
 
    
	
Hedging Disruption:
    	
 
    	
Applicable (except if such Hedging Disruption arises   as a result of (1) a failure of a system within the control of Dealer or   (2) the possession of material non-public information with respect to   the issuer of the Shares by those persons engaged in Dealer’s hedging   activities); provided that:

 

(i)                  Section 12.9(a)(v) of   the Equity Definitions is hereby amended by (a) inserting the following   words at the end of clause (A) thereof: “in the manner contemplated by   the Hedging Party on the Trade Date” and (b) inserting the following   phrases at the end of such Section:

 

“; provided   that any such inability that occurs solely due to the deterioration of the   creditworthiness of the Hedging Party shall not be deemed a Hedging   Disruption. 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, and which constitute   an integral element of the Hedging Party’s hedging activities with respect to   any relevant Transaction, must be available on commercially reasonable   pricing terms.”; and

 

(ii)               Section 12.9(b)(iii) of   the Equity Definitions is hereby amended by inserting in the third line   thereof, after the words “to terminate the Transaction”, the words “if all of   the Transaction is affected by such Hedging Disruption or, if less than all   of the Transaction is affected by such Hedging Disruption, the portion of the   Transaction so affected”.
    

 

12

 

	
Increased Cost of Hedging:
    	
 
    	
Not Applicable.
    
	
 
    	
 
    	
 
    
	
Hedging Party:
    	
 
    	
Dealer [or an affiliate of Dealer that is involved   in the hedging of the Transaction] for all applicable Additional Disruption   Events; provided that, when making any   determination or calculation as “Hedging Party,” Dealer [or such affiliate]   shall be bound by the same obligations relating to required acts of the   Calculation Agent as set forth in Section 1.40 of the Equity Definitions   and this Confirmation as if the Hedging Party were the Calculation Agent.
    
	
 
    	
 
    	
 
    
	
Determining Party:
    	
 
    	
Dealer for all applicable Extraordinary Events; provided that, when making any determination or   calculation as “Determining Party,” Dealer shall be bound by the same   obligations relating to required acts of the Calculation Agent as set forth   in Section 1.40 of the Equity Definitions and this Confirmation as if   the Determining Party were the Calculation Agent.
    
	
 
    	
 
    	
 
    
	
Acknowledgements:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable.
    
	
 
    	
 
    	
 
    
	
Agreements and Acknowledgements
    	
 
    	
 
    
	
Regarding Hedging Activities:
    	
 
    	
Applicable.
    
	
 
    	
 
    	
 
    
	
Additional Acknowledgements:
    	
 
    	
Applicable.
    

 

Mutual Representations: Each of Dealer and Counterparty represents and warrants to, and agrees with, the other party that:

 

(i)                           Tax Disclosure. Notwithstanding anything to the contrary herein, in the Equity Definitions or in the Agreement, and notwithstanding any express or implied claims of exclusivity or proprietary rights, the parties (and each of their employees, representatives or other agents) are authorized to disclose to any and all persons, beginning immediately upon commencement of their discussions and 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 by either party to the other relating to such tax treatment and tax structure.

 

(ii)                        Commodity Exchange Act. It is an “eligible contract participant” within the meaning of the U.S. Commodity Exchange Act, as amended (the “CEA”). The Transaction has been subject to individual negotiation by the parties. The Transaction has not been executed or traded on a “trading facility” as defined in the CEA.

 

(iii)                     Securities Act. It is a “qualified institutional buyer” as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”).

 

(iv)                    (A) It is acting for its own account, and it has made its own independent decisions to enter into the Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary, (B) it is not relying on any

 

13

 

communication (written or oral) of the other party or any of the other party’s affiliates as investment advice or as a recommendation to enter into the Transaction (it being understood that information and explanations related to the terms and conditions of the Transaction shall not be considered investment advice or a recommendation to enter into the Transaction) and (C) no communication (written or oral) received from the other party or any of the other party’s affiliates shall be deemed to be an assurance or guarantee as to the expected results of the Transaction.

 

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

 

Counterparty Representations: In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty represents, warrants, acknowledges and covenants that:

 

(i)                           Counterparty is not as of the Trade Date, and shall not be on the Effective Date (in each case after giving effect to the transactions contemplated to occur on such date pursuant hereto), “insolvent” (as such term is defined in Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)), and on each such date Counterparty would be able to purchase 60,987,900 Shares in compliance with the laws of the jurisdiction of Counterparty’s incorporation or organization.

 

(ii)                        Counterparty shall immediately provide written notice to Dealer upon obtaining knowledge of the occurrence of an Event of Default with respect to Counterparty; provided, however, that should Counterparty be in possession of material non-public information regarding Counterparty, Counterparty shall not communicate such information to Dealer in connection with the Transaction until such information no longer constitutes material non-public information. In addition, Counterparty shall reasonably promptly provide written notice to Dealer of any adjustment that is made under the Indenture on account of any Potential Adjustment Event.

 

(iii)                     Counterparty understands, agrees and acknowledges that Dealer has no obligation or intention to register the Transaction under the Securities Act, any state securities law or other applicable federal securities law.

 

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

 

(v)                       Counterparty understands, agrees and acknowledges that no obligations of Dealer to it hereunder shall be entitled to the benefit of deposit insurance and that such obligations shall not be guaranteed by any affiliate of Dealer or any governmental agency.

 

(vi)                    Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Dealer is not making any representations or warranties with respect to the treatment of the Transaction under ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, ASC Topic 480, Distinguishing Liabilities from Equity and ASC Topic 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity (or any successor issue statements), or under any other accounting guidance.

 

(vii)                 Counterparty is not entering into the Transaction and will not make any election hereunder or under the Convertible Notes for the purpose of (i) creating actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or (ii) raising or depressing or otherwise manipulating the price of the Shares (or any security convertible into or exchangeable for the Shares), in

 

14

 

either case in violation of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(viii)              Counterparty’s most recent Annual Report on Form 10-K, taken together with all reports and other documents subsequently filed by it with the Securities and Exchange Commission pursuant to the Exchange Act, when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents) do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading. 

 

(ix)                    Counterparty has not violated, and shall not directly or indirectly violate, any applicable law (including, without limitation, the Securities Act and the Exchange Act) in connection with the Transaction.

 

(x)                       To the knowledge of Counterparty and assuming that none of Dealer or its affiliates owns or holds (however defined) any Shares other than in connection with the Transaction, no state or local (including non-U.S. jurisdictions) or non-U.S. federal law, rule, regulation or regulatory order applicable to the Shares or the Issuer would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates having the power to vote, owning or holding (however defined) Shares; provided that Counterparty makes no representation or warranty regarding any such requirement that is applicable generally to the ownership of equity securities by Dealer or any of its affiliates solely as a result of it or any of such affiliates being a financial institution, investment advisor or broker-dealer.

 

(xi)                    Counterparty shall deliver to Dealer on the Effective Date an opinion (or opinions) of counsel, dated as of such date and reasonably acceptable to Dealer in form and substance, with respect to (i) valid existence of Counterparty, (ii) due authorization, execution and delivery of this Confirmation and (iii) no conflict of the Transaction with (w) applicable federal laws of the United States, (x) applicable laws of the State of New York and the State of Nevada, (y) any provision of its constitutional documents (including its articles of incorporation and by-laws) and (z) any material agreement filed as an exhibit to Counterparty’s most recent Annual Report on Form 10-K and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K.

 

(xii)                 Counterparty (A) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least USD50 million.

 

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

 

Miscellaneous:

 

No Set-Off. 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, and each party hereby waives any such right of setoff. 

 

Qualified Financial Contracts. It is the intention of the parties that (a) the Transaction shall constitute a “qualified financial contract” within the meaning of 12 U.S.C. Section 1821(e)(8)(D)(i) and (b) a Non-defaulting

 

15

 

Party’s rights under Sections 5 and 6 of the Agreement constitute rights of the kind referred to in 12 U.S.C. Section 1821(e)(8)(A). 

 

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

 

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 any Settlement Date for the Transaction, Dealer may, by notice to Counterparty on or prior to any Settlement Date on which Dealer would be required to deliver Shares hereunder (a “Nominal Settlement Date”), elect to deliver such Shares on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date, as follows: (i) in such notice, Dealer will specify to Counterparty the related Staggered Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but not prior to the beginning of the related “Observation Period” or Extended Observation Period, as the case may be) or delivery times and how it will allocate the Shares it is required to deliver under “Settlement” above among the Staggered Settlement Dates or delivery times; and (ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder on all such Staggered Settlement Dates and delivery times will equal the number of Shares that Dealer would otherwise be required to deliver on such Nominal Settlement Date. 

 

Additional Termination Events.

 

(a)                                 The occurrence of an “Event of Default” with respect to Counterparty under the terms of the Convertible Notes as set forth in Section 6.01 of the Indenture that results in the Convertible Notes being declared due and payable pursuant to the Indenture shall be an Additional Termination Event, with the Transaction as the sole Affected Transaction and Counterparty as the sole Affected Party and Dealer as the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement.

 

(b)                                 Notwithstanding anything to the contrary in this Confirmation, the receipt of a Notice of Exercise by Dealer within the applicable time period therefor as to which the “Conversion Rate” is increased pursuant to a Fundamental Change Adjustment shall constitute an Additional Termination Event as provided in this clause (b) (a “Make-Whole Unwind”). 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 in no event be earlier than the related settlement date for such Convertible Notes) as an Early Termination Date with respect to the portion of the Transaction corresponding to a number of Note Hedging Units (the “Make-Whole Conversion Note Hedging Units”) equal to the lesser of (A) the number of such Note Hedging Units specified in such Notice of Exercise [minus the number of “Make-Whole Conversion Note Hedging Units” (as defined in the Base Note Hedge Confirmation), if any, that relate to such Convertible Notes](3) and (B) the Number of Note Hedging Units as of the date Dealer designates such Early Termination Date and, as of such date, the Number of Note Hedging Units shall be reduced by the number of Make-Whole Conversion Note Hedging Units. Any payment hereunder with respect to such termination 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 the Transaction and a Number of Note Hedging Units equal to the number of Make-Whole Conversion Note Hedging Units, (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 Note Hedging Unit Entitlement that result from corresponding adjustments to the “Conversion Rate”

 

(3) Insert for Additional Note Hedge Confirmation only

 

16

 

pursuant to the Fundamental Change Adjustment); 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 Note Hedging Units, multiplied by (2) the “Conversion Rate” (after taking into account any applicable adjustments to the “Conversion Rate” pursuant to the Fundamental Change Adjustment), multiplied by (3) the Applicable Limit Price on the applicable Settlement Date determined by the Calculation Agent in good faith and in a commercially reasonable manner over (II) the aggregate principal amount of such Convertible Notes, as determined by the Calculation Agent in a commercially reasonable manner.

 

(c)                                  Promptly (but in any event within five Scheduled Trading Days) following any Repurchase Event (as defined below), Counterparty may notify Dealer of such Repurchase Event and the aggregate principal amount of Convertible Notes subject to such Repurchase Event (any such notice, a “Convertible Notes Repurchase Notice”); provided that any such Convertible Notes Repurchase Notice shall contain an acknowledgment by Counterparty of its responsibilities under applicable securities laws, and in particular Section 9 and Section 10(b) of the Exchange Act and the rules and regulations thereunder, in respect of such Repurchase Event and the delivery of such Convertible Notes Repurchase Notice. The receipt by Dealer from Counterparty of any Convertible Notes Repurchase Notice shall constitute an Additional Termination Event as provided herein. Upon receipt of any such Convertible Notes Repurchase Notice, Dealer shall designate an Exchange Business Day following receipt of such Convertible Notes Repurchase Notice (which Exchange Business Day shall be on or as promptly as reasonably practicable after the related settlement date for the relevant Repurchase Event) as an Early Termination Date with respect to the portion of the Transaction corresponding to a number of Note Hedging Units (the “Repurchase Note Hedging Units”) equal to the lesser of (A) [(x)] the aggregate principal amount of such Convertible Notes specified in such Convertible Notes Repurchase Notice, divided by USD 1,000, [minus (y) the number of “Repurchase Note Hedging Units” (as defined in the Base Note Hedge Confirmation)](4) and (B) the Number of Note Hedging Units as of the date Dealer designates such Early Termination Date and, as of such date, the Number of Note Hedging Units shall be reduced by the number of Repurchase Note Hedging Units. Any payment hereunder with respect to such termination (the “Repurchase 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 the Transaction and a Number of Note Hedging Units equal to the number of Repurchase Note Hedging Units, (2) Counterparty were the sole Affected Party with respect to such Additional Termination Event and (3) the terminated portion of the Transaction were the sole Affected Transaction. “Repurchase Event” means that (i) any Convertible Notes are repurchased (whether pursuant to Section 15.02 of the Indenture or otherwise) by Counterparty or any of its subsidiaries, (ii) any Convertible Notes are delivered to Counterparty in exchange for delivery of any property or assets of Counterparty or any of its subsidiaries (howsoever described), (iii) any principal of any of the Convertible Notes is repaid prior to the final maturity date of the Convertible Notes (whether following acceleration of the Convertible Notes or otherwise), or (iv) any Convertible Notes are exchanged by or for the benefit of the Holders (as defined in the Indenture) thereof for any other securities of Counterparty or any of its affiliates (or any other property, or any combination thereof) pursuant to any exchange offer or similar transaction; provided that any conversion of Convertible Notes pursuant to the terms of the Indenture shall not constitute a Repurchase Event.

 

Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith reasonable judgment of Dealer, based on the advice of counsel, the Shares (the “Hedge Shares”) acquired by Dealer or any of its affiliates (collectively for the purposes of this paragraph only, “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: (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 to cover the resale of such Hedge Shares and (A) enter into a customary agreement, in form and substance reasonably

 

(4) Insert for Additional Note Hedge Confirmation only

 

17

 

satisfactory to Dealer, substantially in the form of an underwriting agreement for a registered offering of a substantially similar size, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities of companies of comparable size and line of business, (C) provide disclosure letters of nationally recognized outside counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities; provided, however, that if Dealer, in its sole 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 similar to Counterparty, in form and substance reasonably satisfactory to Dealer, including customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such other documentation as is customary for private placements of companies similar to Counterparty, all reasonably acceptable to Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in its commercially reasonable determination, 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 then held by Dealer from Dealer at the VWAP Price on such Exchange Business Days, and in the amounts, reasonably requested by Dealer. “VWAP Price” means, on any Exchange Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page DISH <equity> AQR (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange Business Day (or if such volume-weighted average price is unavailable, or is, in the Calculation Agent’s reasonable discretion, erroneous, the market value of one Share on such Exchange Business Day, as determined by the Calculation Agent using, if practicable, a volume-weighted method). This paragraph shall survive the termination, expiration or early unwind of the Transaction.

 

Status of Claims in Bankruptcy. Dealer acknowledges and agrees that this Confirmation is not intended to convey to Dealer rights with respect to the Transaction that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to the Transaction other than during Counterparty’s bankruptcy; 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.

 

No Collateral. Notwithstanding any provision of this Confirmation, the Agreement, Equity Definitions, or any other agreement between the parties to the contrary, the obligations of Counterparty under the Transaction are not secured by any collateral.

 

Securities Contract; Swap Agreement. The parties hereto agree and acknowledge that Dealer is a “financial institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment” or a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” a “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Section 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

 

18

 

Repurchase Notices. Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, provide Dealer with a written notice of such repurchase (a “Repurchase Notice”) on such day if, following such repurchase, the Unit Equity Percentage as determined on such day is (a) equal to or greater than 4.5% and (b) greater by 0.5% or more than the Unit Equity Percentage included in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater by 0.5% or more than the Unit Equity Percentage as of the date hereof). The “Unit Equity Percentage” as of any day is the fraction, expressed as a percentage, (i) the numerator of which is the sum of (A) the product of the Applicable Percentage, the number of Note Hedging Units and the Note Hedging Unit Entitlement and (B) the number of Shares underlying any other call option transaction between Dealer as seller and Counterparty as buyer, and (ii) the denominator of which is the number of Shares outstanding on such day. Counterparty agrees to indemnify and hold harmless Dealer and its affiliates and their respective officers, directors, employees, advisors, agents and controlling persons (each, a “Section 16 Indemnified Person”) from and against any and all losses (including losses relating to Dealer’s hedging activities as a consequence 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 reasonable expenses (including reasonable attorney’s fees), joint or several, to which a Section 16 Indemnified Person actually may become subject, as a result of Counterparty’s failure to provide Dealer with a Repurchase Notice on the day and in the manner specified in this paragraph, and to reimburse, upon written request, each of such Section 16 Indemnified Persons for any reasonable legal or other expenses incurred (and supported by invoices or other documentation setting forth in reasonable detail such expenses) in connection with investigating, preparing for, providing testimony or other evidence in connection with or defending any of the foregoing. If any such suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the Section 16 Indemnified Person, such Section 16 Indemnified Person shall promptly notify Counterparty in writing, and Counterparty, upon request of the Section 16 Indemnified Person, shall retain counsel reasonably satisfactory to the Section 16 Indemnified Person to represent the Section 16 Indemnified Person and any others Counterparty may designate in such proceeding and shall pay the reasonable fees and expenses of such counsel related to such proceeding. Counterparty shall be relieved from liability to the extent that any Section 16 Indemnified Person fails promptly to notify Counterparty of any action commenced against it in respect of which indemnity may be sought hereunder; provided that failure to notify Counterparty (x) shall not relieve Counterparty from any liability hereunder to the extent it is not prejudiced as a result thereof and (y) shall not, in any event, relieve Counterparty from any liability that it may have otherwise than on account of this indemnity agreement. Counterparty shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Counterparty agrees to indemnify any Section 16 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 Section 16 Indemnified Person, effect any settlement of any such proceeding contemplated by this paragraph that is pending or threatened in respect of which any Section 16 Indemnified Person is a party and indemnity could have been sought hereunder by such Section 16 Indemnified Person, unless such settlement includes an unconditional release of such Section 16 Indemnified Person from all liability on claims that are the subject matter of such proceeding on terms reasonably satisfactory to such Section 16 Indemnified Person. If the indemnification provided for in this paragraph is unavailable to a Section 16 Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then Counterparty, in lieu of indemnifying such Section 16 Indemnified Person thereunder, shall contribute to the amount paid or payable by such Section 16 Indemnified Person as a result of such losses, claims, damages or liabilities. The remedies provided for in this paragraph are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Section 16 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.

 

Alternative Calculations and Dealer Payment on Early Termination and on Certain Extraordinary Events. If Dealer owes Counterparty any amount in connection with the Transaction pursuant to Sections 12.2, 12.3 (and “Consequences of Merger Events” above), 12.6, 12.7 or 12.9 of the Equity Definitions (except in the case of an Extraordinary Event (x) that is within Counterparty’s control or (y) as a result of which the Shares have changed

 

19

 

into cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the case of 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 or a Termination Event that resulted from an event or events outside Counterparty’s control) (a “Dealer Payment Obligation”), Dealer shall satisfy any such Dealer Payment Obligation by delivery of Termination Delivery Units (as defined below), unless Counterparty (A) gives irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 a.m. and 4:00 p.m. New York time on the Early Termination Date or other date the Transaction is terminated, as applicable (“Notice of Cash Termination”) and (B) remakes the representation set forth under “No Material Non-Public Information” below on the date of such notice; provided that Dealer shall have the right, in its sole discretion and notwithstanding a Notice of Cash Termination, to elect to satisfy its Dealer Payment Obligation by delivery of Termination Delivery Units. If Dealer shall deliver Termination Delivery Units as set forth herein, within a commercially reasonable period of time following the determination by Dealer of the number of Termination Delivery Units, Dealer shall deliver to Counterparty a number of Termination Delivery Units having a cash value equal to the amount of such Dealer Payment Obligation (as determined by the Calculation Agent in good faith and in a commercially reasonable manner), and the provisions of Sections 9.8, 9.9, 9.11 (modified as described above) and 9.12 of the Equity Definitions shall be applicable, except that all references to “Shares” shall be read as references to “Termination Delivery Units”. In addition, notwithstanding anything to the contrary in the Equity Definitions, Dealer may, in whole or in part, deliver securities comprising Termination Delivery Units in certificated form to Counterparty in lieu of delivery through the Clearance System.

 

“Termination Delivery Unit” means one Share or, if the Shares have changed into cash or any other property or the right to receive cash or any other property as the result of an Insolvency, Nationalization or Merger Event, a unit consisting of the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization or Merger Event, as determined by the Calculation Agent. If such Insolvency, Nationalization or Merger Event involves a choice of consideration to be received by holders, the Calculation Agent shall determine the composition of such consideration in its commercially reasonable discretion.

 

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

 

No Material Non-Public Information. Counterparty represents and warrants to Dealer that as of the date hereof it is not aware of any material nonpublic information concerning itself, the Shares or option contracts related to the Shares.

 

Right to Extend. Dealer may postpone any potential Exercise Date or Settlement Date or postpone or extend any other date of valuation or delivery with respect to some or all of the relevant Note Hedging Units (in which event the Calculation Agent shall make appropriate adjustments to the Settlement Amount for such Note Hedging Units), if Dealer determines, in its commercially reasonable judgment and, in respect of clause (ii) below, based on the advice of counsel, that (a) a Regulatory Disruption has occurred or (b) such extension is reasonably necessary to (i) preserve Dealer’s commercially reasonable hedging or hedge unwind activity hereunder in light of existing liquidity conditions (but only if there is a material decrease in liquidity relative to Dealer’s commercially reasonable expectations on the Trade Date) or (ii) enable Dealer to effect purchases of Shares in connection with its commercially reasonable hedging, hedge unwind or settlement activity hereunder in a manner that would, if Dealer were the Issuer or an affiliated purchaser of the Issuer, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures adopted in good faith by Dealer (so long as such policies and procedures are applied generally to counterparties similar to Counterparty and transactions similar to the Transaction). “Regulatory Disruption” shall mean any event that Dealer determines, based on the advice of counsel, makes it advisable with regard to any legal, regulatory or self-

 

20

 

regulatory requirements or related policies and procedures adopted in good faith by Dealer (whether or not such policies or procedures are imposed by law or have been voluntarily adopted by Dealer), for Dealer to refrain from or decrease any market activity in connection with the Transaction (so long as such policies and procedures are applied generally to counterparties similar to Counterparty and transactions similar to the Transaction).

 

Transfer or Assignment. Counterparty may transfer any of its rights or obligations under the Transaction without the prior written consent of Dealer; provided that the following conditions are satisfied: (i) the receipt by Dealer of opinions and documentation reasonably satisfactory to Dealer in connection with such transfer (including, without limitation, any account opening documentation and any documentation with respect to “know your customer” and related requirements), (ii) such transfer being effected on terms reasonably satisfactory to Dealer with respect to any legal and regulatory requirements relevant to Dealer, (iii) the transferee being a United States person (as defined in the Internal Revenue Code of 1986, as amended), (iv) that, in Dealer’s reasonable determination, Dealer will not be required, as a result of such transfer, to pay the transferee an amount under Section 2(d)(i)(4) of the Agreement greater than the amount, if any, that Dealer would have been required to pay to Counterparty in the absence of such transfer, (v) that, in Dealer’s reasonable determination, no Event of Default, Potential Event of Default or Termination Event will occur as a result of such transfer and (vi) that Counterparty will continue to be obligated to provide notices hereunder relating to the Convertible Notes and will continue to be obligated under the provisions set forth under “Disposition of Hedge Shares” and “Repurchase Notices” herein. In addition, Dealer may transfer or assign all or a portion of its Note Hedging Units hereunder at any time (x) without the consent of Counterparty, to any of its affiliates (1) that has a long-term issuer rating that is equal to or better than Dealer’s credit rating at the time of such transfer or assignment, or (2) whose obligations hereunder will be guaranteed, pursuant to the terms of a customary guarantee in a form used by Dealer generally for similar transactions, by Dealer (provided that, in connection with any assignment or transfer pursuant to clause (x) hereof, the guarantee of any guarantor of the relevant transferee’s obligations under the Transaction shall constitute a Credit Support Document under the Agreement), or (y) with Counterparty’s consent (such consent not to be unreasonably withheld or delayed), to any third-party financial institution that is a recognized dealer in the market for U.S. corporate equity derivatives and that has a rating (or whose guarantor has a rating) for its long term, unsecured and unsubordinated indebtedness of A+ or better by Standard & Poor’s Ratings Services or its successor (“S&P”), or A1 or better by Moody’s Investors Service, Inc. or its successor (“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 agency rating mutually agreed in good faith by Counterparty and Dealer; provided that, in the case of any transfer or assignment described in clause (x) or (y) above, (I) an Event of Default, Potential Event of Default or Termination Event will not occur as a result of such transfer and assignment and (II) (a) such transfer or assignment shall not result in a deemed exchange by Counterparty within the meaning of Section 1001 of the Internal Revenue Code of 1986, as amended, (b) Counterparty will not receive from the transferee or assignee on any payment date or delivery date an amount or a number of Shares, as applicable, lower than the amount or the number of Shares, as applicable, that Dealer would have been required to pay or deliver to Counterparty in the absence of such transfer or assignment, (c) Counterparty will not, as a result of such transfer or assignment, be required to pay the transferee or assignee on any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount that Counterparty would have been required to pay to Dealer in the absence of such transfer or assignment, and (d) Dealer shall cause the transferee or assignee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested by Counterparty to permit Counterparty to determine that events described in clauses (II)(b) and (c) of this proviso will not occur upon or after such transfer or assignment.

 

If, as determined in Dealer’s sole discretion, (a) at any time (1) the Section 16 Equity Percentage exceeds 9% or (2) Dealer, Dealer Group (as defined below) or any person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under any federal, state or local (including non-U.S.) laws, rules, regulations or regulatory orders, or any 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, or could be reasonably viewed as meeting any of the foregoing, in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting, registration,

 

21

 

filing or notification obligations or other requirements (except for any filings of Form 13F, Form 13H, Schedule 13D or Schedule 13G under the Exchange Act, but including obtaining prior approval by a state, federal or non-U.S. regulator) of a Dealer Person, or is reasonably likely (as determined by the Calculation Agent) to result in an adverse effect on a Dealer Person, under Applicable Restrictions, as determined by Dealer in its reasonable discretion, and with respect to which such requirements have not been met or the relevant approval has not been received minus (y) 1% of the number of Shares outstanding on the date of determination (either such condition described in clause (1) or (2), an “Excess Ownership Position”), and (b) Dealer is unable, after commercially reasonable efforts, to effect a transfer or assignment on pricing and terms and within a time period reasonably acceptable to it of all or a portion of the Transaction pursuant to the preceding paragraph such that an Excess Ownership Position no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that an Excess Ownership Position no longer exists following such partial termination.  In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment shall be made pursuant to Section 6 of the Agreement as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Note Hedging Units equal to the Terminated Portion, (ii) Counterparty shall be the sole Affected Party with respect to such partial termination and (iii) such Transaction shall be the only Terminated Transaction (and, for the avoidance of doubt, the provisions set forth under the caption “Alternative Calculations and Dealer Payment on Early Termination and on Certain Extraordinary Events” shall apply to any amount that is payable by Dealer to Counterparty pursuant to this sentence).  Dealer shall notify Counterparty of an Excess Ownership Position with respect to which it intends to seek a transfer or assignment promptly after becoming aware of such an Excess Ownership Position. The “Section 16 Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates subject to aggregation with Dealer for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act and all persons who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer (collectively, “Dealer Group”) “beneficially own” (within the meaning of Section 13 of the Exchange Act) without duplication on such day (or to the extent that the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such number) and (B) the denominator of which is the number of Shares outstanding on such day.

 

Designation by Dealer.  Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any shares or other securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such shares or other securities and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations.  Dealer shall be discharged of its obligations to Counterparty to (and only to) the extent of any such performance.

 

[Insert Dealer agency provisions, if any].

 

Severability; Illegality.  Notwithstanding anything to the contrary in the Agreement, if compliance by either party with any provision of the Transaction would be unenforceable or illegal, (a) the parties shall negotiate in good faith to resolve such unenforceability or illegality in a manner that preserves the economic benefits of the transactions contemplated hereby and (b) the other provisions of the Transaction shall not be invalidated, but shall remain in full force and effect.

 

Waiver of Jury Trial.  EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE TRANSACTION.  EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND 

 

22

 

CERTIFICATIONS PROVIDED HEREIN.

 

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)).

 

Agreements and Acknowledgements Regarding Hedging. Counterparty understands, acknowledges and agrees that: (A) at any time on and prior to the Expiration Date, Dealer and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Transaction; (B) Dealer and its affiliates also may be active in the market for Shares other than in connection with hedging activities in relation to the Transaction; (C) Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in securities of Issuer shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the “Daily VWAP”; and (D) any market activities of Dealer and its affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the “Daily VWAP”, each in a manner that may be adverse to Counterparty.

 

Early Unwind.  In the event the sale of the [“Firm Securities”](5)[“Option Securities”](6) (as defined in the Purchase Agreement dated as of [the Trade Date] [August 2, 2016] between Counterparty and Deutsche Bank Securities Inc.) is not consummated with the initial purchaser thereof for any reason by the close of business in New York on August 8, 2016 (or such later date as agreed upon by the parties) (August 8, 2016 or such later date as agreed upon being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (a) the Transaction and all of the respective rights and obligations of Dealer and Counterparty under the Transaction shall be cancelled and terminated and (b) 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.  Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.

 

Payment by Counterparty. In the event that, following payment of the Premium, (i) an Early Termination Date occurs or is designated with respect to the Transaction as a result of a Termination Event or an Event of Default (other than an Event of Default or Termination Event within Counterparty’s control) and, as a result, Counterparty owes to Dealer an amount calculated under Section 6(e) of the Agreement, or (ii) Counterparty owes to Dealer any amount under “Consequences of Merger Events” above (other than as a result of a Merger Event that resulted from an event or events within Counterparty’s control), such amount shall be deemed to be zero.

 

Tax Form Delivery.  For the purposes of Section 4(a)(i) and (ii) of the Agreement, (A) Counterparty agrees to deliver an executed United States Internal Revenue Service Form W-9 (or any successor thereto), (i) upon execution of the Confirmation; (ii) promptly upon reasonable demand by Dealer; and (iii) promptly upon learning that any such document previously provided by Counterparty has become obsolete or incorrect and (B) Dealer agrees to deliver to Counterparty a properly executed U.S. Internal Revenue Service Form [W-9][W-8ECI] (or any successor thereto), (i) upon execution of the Confirmation; (ii) promptly upon reasonable demand by Counterparty; and (iii) promptly upon learning that any such document previously provided by Dealer has

 

(5) Insert for Base Note Hedge Confirmation

(6) Insert for Additional Note Hedge Confirmation

 

23

 

become obsolete or incorrect.

 

Additional Tax Matters.

 

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

 

(ii)           “Indemnifiable Tax” as defined in Section 14 of the Agreement shall not include any tax imposed under Section 871(m) of the Code or any regulations issued thereunder.

 

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

 

(a)                                 Dealer is a Portfolio Data Sending Entity and Counterparty is a Portfolio Data Receiving Entity;

 

(b)                                 Dealer and Counterparty may use a Third Party Service Provider, and each of Dealer and Counterparty consents to such use including the communication of the relevant data in relation to Dealer and Counterparty to such Third Party Service Provider for the purposes of the reconciliation services provided by such entity;

 

(c)                                  The Local Business Days for such purposes in relation to Dealer are New York, and in relation to Counterparty are Colorado;

 

(d)                                 The following are the applicable email addresses:

 

Portfolio Data:               Dealer: [              ];

 

Counterparty: [            ];

 

Notice of discrepancy:                      Dealer: [            ];

 

Counterparty: [          ];

 

Dispute Notice:             Dealer: [          ];

 

Counterparty: [            ].

 

NFC Representation Protocol: The parties agree that the provisions set out in the Attachment to the ISDA 2013

 

24

 

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

 

Governing Law; Jurisdiction:         THIS CONFIRMATION AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.  THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

 

[Contractual Recognition of Bail-in

 

(a)                                                                 Each party acknowledges and accepts that liabilities arising under this agreement (other than Excluded Liabilities) may be subject to the exercise of the UK Bail-in Power by the relevant resolution authority and acknowledges and accepts to be bound by any Bail-in Action and the effects thereof (including any variation, modification and/or amendment to the terms of this agreement as may be necessary to give effect to any such Bail-in Action), which if the Bail-in Termination Amount is payable by Dealer to the Counterparty may include, without limitation:

 

a.               reduction, in full or in part, of the Bail-in Termination Amount; and/or

 

b.               conversion of all, or a portion of, the Bail-in Termination Amount into shares or other instruments of ownership, in which case the Counterparty acknowledges and accepts that any such shares or other instruments of ownership may be issued to or conferred upon it as a result of the Bail-in Action.

 

(b)                                                                 Each party acknowledges and accepts that this provision is exhaustive on the matters described herein to the exclusion of any other agreements, arrangements or understanding between the parties relating to the subject matter of this agreement and that no further notice shall be required between the parties pursuant to the agreement in to order to give effect to the matters described herein.

 

(c)                                                                  The acknowledgements and acceptances contained in paragraphs (a) and (b) above will not apply if:

 

a.              the relevant resolution authority determines that the liabilities arising under this agreement may be subject to the exercise of the UK Bail-in Power pursuant to the law of the third country governing such liabilities or a binding agreement concluded with such third country and in either case the UK Regulations have been amended to reflect such determination; and/or

 

b.              the UK Regulations have been repealed or amended in such a way as to remove the requirement for the acknowledgements and acceptances contained in paragraphs (a) and (b).

 

25

 

(d)                                                                 For purposes of this paragraph:

 

a.               “Bail-in Action” means the exercise of the UK Bail-in Power by the relevant resolution authority in respect of all transactions (or all transactions relating to one or more netting sets, as applicable) under this agreement.

 

b.              “Bail-in Termination Amount” means the early termination amount or early termination amounts (howsoever described), together with any accrued but unpaid interest thereon, in respect of all transactions (or all transactions relating to one or more netting sets, as applicable) under this agreement (before, for the avoidance of doubt, any such amount is written down or converted by the relevant resolution authority).

 

c.               “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms.

 

d.            “Excluded Liabilities” means liabilities excluded from the scope of the contractual recognition of bail-in requirement pursuant to the UK Regulations.

 

e.             “SRM Regulation” means Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010.

 

f.              “UK Bail-in Power” means any write-down or conversion power existing from time to time (including, without limitation, any power to amend or alter the maturity of eligible liabilities of an institution under resolution or amend the amount of interest payable under such eligible liabilities or the date on which interest becomes payable, including by suspending payment for a temporary period) under, and exercised in compliance with, any laws, regulations, rules or requirements (together, the “UK Regulations”) in effect in the United Kingdom relating to the transposition of the BRRD as amended from time to time, including but not limited to, the Banking Act 2009 as amended from time to time, and the instruments, rules and standards created thereunder, pursuant to which the obligations of a regulated entity (or other affiliate of a regulated entity) can be reduced (including to zero), cancelled or converted into shares, other securities, or other obligations of such regulated entity or any other person.

 

g.               A reference to a “regulated entity” is to any BRRD Undertaking as such term is defined under the PRA Rulebook promulgated by the United Kingdom Prudential Regulation Authority or to any person falling within IFPRU 11.6, of the FCA Handbook promulgated by the United Kingdom Financial Conduct Authority, both as amended from time to time, which includes, certain credit institutions, investment firms, and certain of their parent or holding companies.]

 

Contact information. For purposes of the Agreement (unless otherwise specified in the Agreement), the addresses for notice to the parties shall be:

 

(a) Counterparty

 

DISH Network Corporation
 9601 South Meridian Boulevard 
 Englewood, CO 80112
 Attention: General Counsel

Fax:  [              ]
 Tel: [              ]

 

with a copy to:

 

26

 

[              ]
 DISH Network Corporation
 9601 South Meridian Boulevard
 Englewood, CO 80112
 Fax: [              ]
 Tel: [              ]

 

(b) Dealer

 

[        ]

 

with a copy to:

 

[        ]

 

27

 

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

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning a copy to Dealer.

 

We are very pleased to have executed the Transaction with you and we look forward to completing other transactions with you in the near future.

 

Very truly yours,

 

 

[DEALER]

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to [Base][Additional] Note Hedge Confirmation]

 

 

Counterparty hereby agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

 

DISH Network Corporation

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to [Base][Additional] Note Hedge Confirmation]

 

 

ANNEX A

 

The Premium for the Transaction is set forth below.

 

Premium:                                                                                           USD [   ]Exhibit 10.2

 

	
 
    	
[Insert   Dealer Letterhead]
    

 

	
DATE:
    	
August[2][3], 2016
    	
 
    
	
 
    	
 
    	
 
    
	
TO:
    	
DISH Network Corporation
    	
 
    
	
 
    	
9601 South Meridian Boulevard
    	
 
    
	
 
    	
Englewood, CO 80112
    	
 
    
	
ATTENTION:
    	
[                      ]
    	
 
    
	
TELEPHONE:
    	
[                      ]
    	
 
    
	
FACSIMILE:
    	
[                      ]
    	
 
    
	
 
    	
 
    	
 
    
	
FROM:
    	
[Dealer]
    	
 
    
	
 
    	
 
    	
 
    
	
SUBJECT:
    	
[Base][Additional] Warrant Transaction
    	
 
    
	
 
    	
 
    	
 
    
	
REFERENCE NUMBER(S):
    	
[                      ]
    	
 
    

 

The purpose of this agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between [Dealer] (“Dealer”) and DISH Network Corporation (“Counterparty”) on the Trade Date specified below (the “Transaction”).  This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  This Confirmation constitutes the entire agreement and understanding of the parties with respect to the subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and oral communications with respect thereto.

 

[Insert Dealer agency statement, if applicable][Insert Statement that Dealer is not a member of the Securities Investor Protection Corporation, if applicable]

 

The definitions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation.  In the event of any inconsistency between the Equity Definitions and the terms of this Confirmation, the terms of this Confirmation shall govern, and in the event of any inconsistency between either the Equity Definitions or this Confirmation and the Agreement (as defined below), the Equity Definitions or this Confirmation, as the case may be, shall govern.  For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of this Confirmation, the Agreement or the Equity Definitions shall not be construed to exclude or limit the application of any other provision of this Confirmation, the Agreement or the Equity Definitions.  For the purposes of the Equity Definitions, each reference herein to a Warrant shall be deemed to be a reference to a Call or an Option, as the context requires.

 

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 (the “Agreement”) in the form of the ISDA 2002 Master Agreement as if Dealer and Counterparty had executed an agreement in such form (without any Schedule except for (i) the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine), (ii) the election of USD as the Termination Currency and (iii) the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to both parties, with a “Threshold Amount” of 3% of the shareholders’ equity of Dealer in the case of Dealer and a “Threshold Amount” of $250,000,000 in the case of Counterparty (provided that (a) the phrase “, or becoming capable at such time of being declared,” shall be deleted from clause (1) of such Section 5(a)(vi) of the Agreement, (b) “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement, except that such term shall not include obligations in respect of deposits received in the ordinary course of Dealer’s banking business and (c) the following language shall be added to the end of Section 5(a)(vi) of the Agreement: “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission of an administrative or operational nature, (y) funds were available to enable the relevant party to make the payment when due and (z) the payment is made

 

 

within two Local Business Days of such party’s receipt of written notice of its failure to pay.”).  The Transaction shall be the only transaction under the Agreement.

 

The Transaction is a Warrant Transaction, which shall be considered a Share Option Transaction for purposes of the Equity Definitions, and shall have the following terms:

 

	
General:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Trade Date:
    	
 
    	
August [2][3], 2016.
    
	
 
    	
 
    	
 
    
	
Effective Date:
    	
 
    	
August 8, 2016.
    
	
 
    	
 
    	
 
    
	
Components:
    	
 
    	
The Transaction will be divided into individual   Components, each with the terms set forth in this Confirmation, and, in   particular, with the Number of Warrants and Expiration Date set forth in this   Confirmation. The payments and deliveries to be made upon settlement of the   Transaction will be determined separately for each Component as if each   Component were a separate Transaction under the Agreement.
    
	
 
    	
 
    	
 
    
	
Warrant Style:
    	
 
    	
European.
    
	
 
    	
 
    	
 
    
	
Warrant Type:
    	
 
    	
Call.
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Counterparty.
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Dealer.
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The Class A common stock, par value USD 0.01   per share, of Counterparty.
    
	
 
    	
 
    	
 
    
	
Number of Warrants:
    	
 
    	
For each Component, as provided in Annex C to   this Confirmation.
    
	
 
    	
 
    	
 
    
	
Warrant Entitlement:
    	
 
    	
One Share per Warrant.
    
	
 
    	
 
    	
 
    
	
Strike Price:
    	
 
    	
As provided in Annex B to this Confirmation.
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
As provided in Annex B to this Confirmation.
    
	
 
    	
 
    	
 
    
	
Premium Payment Date:
    	
 
    	
The Effective Date.
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The NASDAQ Global Select Market.
    
	
 
    	
 
    	
 
    
	
Related Exchanges:
    	
 
    	
All Exchanges.
    
	
 
    	
 
    	
 
    
	
Calculation Agent:
    	
 
    	
Dealer; provided   that, following the occurrence and during the continuance of an Event of   Default of the type described in Section 5(a)(vii) of the Agreement   with respect to which Dealer is the sole Defaulting Party, Counterparty shall   have the right to designate a
    

 

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nationally recognized independent equity derivatives   dealer to replace Dealer as the Calculation Agent, and the parties shall work   in good faith to execute any appropriate documentation required by such   replacement Calculation Agent.

 

Following any adjustment, determination or   calculation by the Calculation Agent or Determining Party hereunder, upon a   written request by Counterparty (which may be by email), the Calculation   Agent or Determining Party, as the case may be, will promptly (but in any   event within three Scheduled Trading Days) provide to Counterparty by email   to the email address provided by Counterparty in such written request a   report (in a commonly used file format for the storage and manipulation of   financial data) displaying in reasonable detail the basis for such   adjustment, determination or calculation (including any assumptions used in   making such adjustment, determination or calculation), it being understood   that in no event will Dealer be obligated to share with Counterparty any   proprietary or confidential data or information or any proprietary or   confidential models used by it in making such adjustment, determination or   calculation.
    
	
 
    	
 
    	
 
    
	
Procedure for Exercise:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
In   respect of any Component:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
As provided in Annex C to this Confirmation   (or, if such date is not a Scheduled Trading Day, the next following   Scheduled Trading Day that is not already an Expiration Date for another   Component); provided that if that date is a   Disrupted Day, the Expiration Date for such Component shall be the first   succeeding Scheduled Trading Day that is not a Disrupted Day and is not or is   not deemed to be an Expiration Date in respect of any other Component of the   Transaction hereunder; and provided further   that if the Expiration Date has not occurred pursuant to the preceding   proviso as of the Final Disruption Date, then the Final Disruption Date shall   be deemed to be the Expiration Date (irrespective of whether such date is an   Expiration Date in respect of any other Component for the Transaction) and,   notwithstanding anything to the contrary in this Confirmation or the Equity   Definitions, the Relevant Price for the Expiration Date shall be the   prevailing market value per Share determined by the Calculation Agent in a   commercially reasonable manner. Notwithstanding the foregoing and anything to   the contrary in the Equity Definitions, if a Market Disruption Event occurs   on any Expiration Date, the Calculation Agent may determine that such   Expiration Date is a Disrupted Day only in part, in which case (i) the   Calculation Agent shall make adjustments to the number of Warrants for the   relevant Component for which such day shall be the Expiration Date and shall designate   the Scheduled Trading Day determined in the manner described in the   immediately preceding sentence as the Expiration 
    

 

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Date for the remaining Warrants for such Component   and (ii) the Relevant Price for such Disrupted Day shall be determined   by the Calculation Agent, using a volume-weighted methodology, based on   transactions in the Shares on such Disrupted Day taking into account the   nature and duration of such Market Disruption Event on such day.   Section 6.6 of the Equity Definitions shall not apply to any Valuation   Date occurring on an Expiration Date. “Final Disruption Date”   has the meaning provided in Annex B to this Confirmation.
    
	
 
    	
 
    	
 
    
	
Automatic Exercise:
    	
 
    	
Applicable, and means that the Number of Warrants   for each Component will be deemed to be automatically exercised at the   Expiration Time on the Expiration Date for such Component, subject to the   provisions set forth under “Limit on Beneficial Ownership” below.
    
	
 
    	
 
    	
 
    
	
Market Disruption Event:
    	
 
    	
Section 6.3(a) of the Equity Definitions   is hereby amended by deleting the words “during the one hour period that ends   at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time   or Knock-out Valuation Time, as the case may be,” in clause   (ii) thereof, and by replacing the words “or (iii) an Early   Closure.” with “(iii) an Early Closure or (iv) a Regulatory   Disruption, in each case that the Calculation Agent determines is material.”
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Section 6.3(d) of the Equity Definitions   is hereby amended by deleting the remainder of the provision following the   term “Scheduled Closing Time” in the fourth line thereof.
    
	
 
    	
 
    	
 
    
	
Regulatory Disruption:
    	
 
    	
Any event that Dealer determines, in its reasonable   judgment based on the advice of counsel, makes it appropriate with regard to   any legal, regulatory or self-regulatory requirements or related policies and   procedures adopted in good faith by Dealer (whether or not such policies or   procedures are imposed by law or have been voluntarily adopted by Dealer),   for Dealer or its affiliate to refrain from or decrease any market activity   in connection with the Transaction (so long as such policies and procedures   are applied generally to counterparties similar to Counterparty and   transactions similar to the Transaction). Dealer shall notify Counterparty   promptly that a Regulatory Disruption has occurred and the Expiration Dates   affected by it.
    
	
 
    	
 
    	
 
    
	
Settlement Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
In   respect of any Component:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Settlement Method Election:
    	
 
    	
Applicable; provided that   (i) references to “Physical Settlement” in Section 7.1 of the   Equity Definitions shall be replaced by references to “Net Share Settlement”;   (ii) Counterparty may elect Cash Settlement only if Counterparty   represents and warrants to Dealer in writing on 
    

 

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the date of such election that (A) Counterparty   is not in possession of any material non-public information regarding   Counterparty or the Shares, (B) Counterparty is electing Cash Settlement   in good faith and not as part of a plan or scheme to evade compliance with   the federal securities laws, and (C) the assets of Counterparty at their   fair valuation exceed the liabilities of Counterparty (including contingent   liabilities), the capital of Counterparty is adequate to conduct the business   of Counterparty, and Counterparty has the ability to pay its debts and   obligations as such debts mature and does not intend to, or does not believe   that it will, incur debt beyond its ability to pay as such debts mature; and   (iii) the same election of settlement method shall apply to all   Expiration Dates hereunder.
    
	
 
    	
 
    	
 
    
	
Electing Party:
    	
 
    	
Counterparty

 
    
	
Settlement Method Election Date:
    	
 
    	
The third Scheduled Trading Day immediately   preceding the scheduled Expiration Date for the Component with the earliest   scheduled Expiration Date.

 
    
	
Default Settlement Method:
    	
 
    	
Net Share Settlement

 
    
	
Net Share Settlement:
    	
 
    	
If applicable, in lieu of the obligations set forth   in Sections 8.1 and 9.1 of the Equity Definitions, for each Component,   Counterparty shall deliver to Dealer on the relevant Settlement Date a number   of Shares equal to the Net Share Amount for such Component to the account   specified by Dealer, and cash in lieu of any fractional Share valued at the   Relevant Price for the Valuation Date corresponding to such Settlement Date,   subject to the provisions set forth under “Registration/Private Placement   Procedures” below.
    
	
 
    	
 
    	
 
    
	
Net Share Amount:
    	
 
    	
For any Exercise Date, a number of Shares, as   calculated by the Calculation Agent, equal to (x) the product of   (i) the number of Warrants being exercised or deemed exercised on such   Exercise Date, (ii) the Warrant Entitlement and   (iii) the excess, if any, of the Relevant Price for the Valuation Date   occurring on such Exercise Date over the Strike Price (such product, the “Net Share Settlement Amount”), divided by   (y) such Relevant Price.

 
    
	
Cash Settlement:
    	
 
    	
If applicable, on the relevant Settlement Date, Counterparty   shall pay to Dealer an amount of cash in the Settlement Currency equal to the   Net Share Settlement Amount for such Settlement Date.
    
	
 
    	
 
    	
 
    
	
Relevant Price:
    	
 
    	
On any Valuation Date, the volume weighted average   price per Share for the regular trading session of the Exchange as displayed   under the heading “Bloomberg VWAP” on Bloomberg Page DISH <equity>   AQR on such Valuation Date in respect of the period from 9:30 am to 4:00   p.m. (New York City time) on such Valuation Date (or if such volume   weighted average price is not available or is manifestly incorrect, the   Calculation Agent’s commercially reasonable, good faith 
    

 

5

 

	
 
    	
 
    	
estimate (based on available market data using, if   feasible, a volume-weighted methodology) of such price on such Valuation   Date).
    
	
 
    	
 
    	
 
    
	
Settlement Dates:
    	
 
    	
As determined pursuant to Section 9.4 of the   Equity Definitions, subject to the provisions set forth under   “Registration/Private Placement Procedures” below; provided   that Section 9.4 of the Equity Definitions is hereby amended by   (i) inserting the words “or cash” immediately following the word   “Shares” in the first line thereof and (ii) inserting the words “for the   Shares” immediately following the words “Settlement Cycle” in the second line   thereof.
    
	
 
    	
 
    	
 
    
	
Settlement Currency:
    	
 
    	
USD.
    
	
 
    	
 
    	
 
    
	
Other Applicable Provisions:
    	
 
    	
If Net Share Settlement is applicable, the   provisions of Sections 9.1(c), 9.8, 9.9, 9.11 (except that, with respect to   any Private Placement Settlement, the Representation and Agreement contained   in Section 9.11 of the Equity Definitions shall be modified by excluding   any representations therein relating to restrictions, obligations,   limitations or requirements under applicable securities laws as a result of   the fact that Counterparty is the Issuer of the Shares) and 9.12 of the   Equity Definitions will be applicable, except that all references in such   provisions to “Physical Settlement” and “Physically-settled” shall be read as   references to “Net Share Settlement” and “Net Share Settled”. “Net Share   Settled” in relation to any Warrant means that Net Share Settlement is   applicable to such Warrant.
    
	
 
    	
 
    	
 
    
	
Dividends:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
In   respect of any Component:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dividend Adjustments:
    	
 
    	
Counterparty agrees to notify Dealer promptly of the   announcement of an ex-dividend date for any cash dividend by Counterparty. If   an ex-dividend date for any cash dividend or distribution on the Shares   occurs at any time from, but excluding, the Trade Date to, and including, the   Expiration Date, then in lieu of any adjustments as provided under “Method of   Adjustment” below, the Calculation Agent may make such adjustments to the   Strike Price, the Number of Warrants and/or any other variable relevant to   the exercise, settlement or payment or other terms of the Transaction as it   deems appropriate in its good faith and commercially reasonable judgment to   account for the economic effect on the Transaction of such dividend.

 
    
	
Adjustments:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
In   respect of any Component:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Method of Adjustment:
    	
 
    	
Calculation Agent Adjustment; provided,   however, that the Equity Definitions   shall be amended by replacing the words “diluting or 
    

 

6

 

	
 
    	
 
    	
concentrative” in Sections 11.2(a), 11.2(c) (in   two instances) and 11.2(e)(vii) with the word “material economic”, by   adding the words “or the Transaction” after the words “theoretical value of   the relevant Shares” in Sections 11.2(a), 11.2(c) and   11.2(e)(vii) and by replacing the word “event” in   Section 11.2(e)(vii) with the words “corporate action by the   Issuer”; provided further that adjustments may   be made to account for changes in actual or expected volatility, dividends,   correlation, stock loan rate and liquidity relative to the relevant Share.

 

Notwithstanding anything to the contrary in the   Agreement, this Confirmation or the Equity Definitions, in no event shall the   Strike Price be subject to adjustment to the extent that, after giving effect   to such adjustment, the Strike Price would be less than USD 49.18, except for   any adjustment pursuant to the terms of this Confirmation and the Equity   Definitions in connection with stock splits or similar changes to   Counterparty’s capitalization.
    
	
 
    	
 
    	
 
    
	
Extraordinary Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
New Shares:
    	
 
    	
In the definition of New Shares in   Section 12.1(i) of the Equity Definitions (a) the text in   clause (i) thereof shall be deleted in its entirety and replaced with   “publicly quoted, traded or listed on any of the New York Stock Exchange, The   NASDAQ Global Select Market or The NASDAQ Global Market (or their respective   successors)” and (b) the following clause shall be inserted at the end   thereof: “and (iii) of an entity or person that is a corporation   organized under the laws of the United States, any State thereof or the   District of Columbia that either (x) also becomes Counterparty under the   relevant Transaction following such Merger Event or Tender Offer or   (y) wholly owns the Counterparty under the relevant Transaction   following such Merger Event or Tender Offer (which Counterparty is a   corporation that is organized under the laws of the United States, any State   thereof or the District of Columbia) and fully and unconditionally guarantees   the obligations of Counterparty under the Transaction”.
    
	
 
    	
 
    	
 
    
	
Modified Calculation Agent Adjustment:
    	
 
    	
If, in respect of any Merger Event to which Modified   Calculation Agent Adjustment applies, the adjustments to be made in   accordance with Section 12.2(e)(i) of the Equity Definitions would   result in Counterparty being different from the issuer of the Shares, then   with respect to such Merger Event, as a condition precedent to the   adjustments contemplated in Section 12.2(e)(i) of the Equity   Definitions, Counterparty and the issuer of the Shares shall, prior to the   Merger Date, have entered into such documentation containing representations,   warranties and agreements relating to securities law and other issues as   requested by Dealer that Dealer has determined, in its reasonable discretion,   to be reasonably necessary or appropriate to allow Dealer to continue as a   party to the Transaction, as adjusted under Section 12.2(e)(i) of   the Equity Definitions, and to preserve its commercially reasonable hedging   or hedge unwind activities in connection with the Transaction in a manner   compliant with applicable legal, regulatory or self-regulatory requirements,   or with related 
    

 

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policies and procedures adopted in good faith by   Dealer (so long as such policies and procedures are applied generally to   counterparties similar to Counterparty and transactions similar to the   Transaction), and if such conditions are not met or if the Calculation Agent   determines that no adjustment that it could make under   Section 12.2(e)(i) of the Equity Definitions will produce a   commercially reasonable result, then the consequences set forth in   Section 12.2(e)(ii) of the Equity Definitions shall apply.

 

For greater certainty, the definition of “Modified   Calculation Agent Adjustment” in Sections 12.2 and 12.3 of the Equity   Definitions shall be amended by replacing the parenthetical provision therein   with the following: “(which may include adjustments to account for any actual   or expected changes in volatility, dividends, correlation, stock loan rate or   liquidity relevant to the Shares or to the Transaction)”.
    
	
 
    	
 
    	
 
    
	
Consequences of Announcement Events:
    	
 
    	
With respect to any Component, if an Announcement   Event occurs, the Calculation Agent will determine (acting in good faith and   in a commercially reasonable manner) the economic effect of the Announcement   Event on the theoretical value of such Component (i) on or after the   relevant Announcement Date and (ii) on the Valuation Date or any earlier   date of termination or cancellation for such Component (in each case, which   may include, without limitation, any actual or expected change in volatility,   dividends, correlation, stock loan rate or liquidity relevant to the Shares   or to such Component), and if, in the case of clause (i) or (ii), the   Calculation Agent determines (acting in good faith and in a commercially   reasonable manner) that such economic effect is material and Dealer so elects   in its commercially reasonable discretion, the Calculation Agent will   (x) adjust the terms of such Component to reflect such economic effect   (without duplication in respect of any other adjustment or cancellation   valuation made pursuant to the Equity Definitions) and (y)  determine   the effective date of such adjustment; provided that,   notwithstanding the foregoing, if the related Merger Date or Tender Offer   Date, as the case may be, or any subsequent related Announcement Event, occurs   on or prior to the effective date of such adjustment, any further adjustment   to the terms of such Component with respect to such Merger Date, Tender Offer   Date or Announcement Event pursuant to this Confirmation and/or the Equity   Definitions shall take such earlier adjustment into account (and, for the   avoidance of doubt, where Cancellation and Payment is applicable, the   Determining Party shall take into account such adjustment in determining the   Cancellation Amount).
    
	
 
    	
 
    	
 
    
	
Announcement Event:
    	
 
    	
(i) The public statement or announcement by any   person or entity of (x) any transaction or event that, if completed,   would constitute a Merger Event or Tender Offer or (y) the intention to   enter into a Merger Event or Tender Offer, (ii) the public statement or   announcement by the Issuer of an intention to solicit or enter into, or to   explore strategic alternatives or other similar undertakings that may   include, a Merger Event or Tender Offer or (iii) any subsequent public   statement or announcement by any person or entity of a withdrawal, 
    

 

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discontinuation, termination or other change to a   transaction or intention that is the subject of an announcement of the type   described in clause (i) or (ii) of this sentence, as determined, in   each case, by the Calculation Agent. For purposes of this definition of   “Announcement Event,” the remainder of the definition of “Merger Event” in   Section 12.1(b) of the Equity Definitions following the definition   of “Reverse Merger” therein shall be disregarded.
    
	
 
    	
 
    	
 
    
	
Announcement Date:
    	
 
    	
Notwithstanding Section 12.1(l) of the   Equity Definitions, an “Announcement Date” means, in respect of an   Announcement Event, the date on which such Announcement Event occurs.
    
	
 
    	
 
    	
 
    
	
Consequences of Merger Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Merger Event:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(a) Share-for-Share:
    	
 
    	
Modified Calculation Agent Adjustment.
    
	
 
    	
 
    	
 
    
	
(b) Share-for-Other:
    	
 
    	
Cancellation and Payment (Calculation Agent   Determination).
    
	
 
    	
 
    	
 
    
	
(c) Share-for-Combined:
    	
 
    	
Cancellation and Payment (Calculation Agent   Determination); provided that Dealer may elect,   in its commercially reasonable judgment, Component Adjustment for all or any   portion of the Transaction.
    
	
 
    	
 
    	
 
    
	
Tender Offer:
    	
 
    	
Applicable; provided that   Section 12.1(d) of the Equity Definitions is hereby amended by   adding “, or of the outstanding Shares,” before “of the Issuer” in the   fourth line thereof. Sections 12.1(e) and 12.1(l)(ii) of the Equity   Definitions are hereby amended by adding “or Shares, as applicable,” after   “voting shares”; provided, further   that Section 12.1(d) of the Equity Definitions is hereby amended by   replacing “10%” with “20%”.
    
	
 
    	
 
    	
 
    
	
Consequences of Tender Offers:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(a) Share-for-Share:
    	
 
    	
Modified Calculation Agent Adjustment.
    
	
 
    	
 
    	
 
    
	
(b) Share-for-Other:
    	
 
    	
Modified Calculation Agent Adjustment.
    
	
 
    	
 
    	
 
    
	
(c) Share-for-Combined:
    	
 
    	
Modified Calculation Agent Adjustment.
    
	
 
    	
 
    	
 
    
	
Nationalization, Insolvency and 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 shall 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, 
    

 

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re-traded or re-quoted on any such exchange or   quotation system, such exchange or quotation system shall be deemed to be the   Exchange.
    
	
 
    	
 
    	
 
    
	
Additional Disruption Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Change in Law:
    	
 
    	
Applicable; provided   that Section 12.9(a)(ii) of the Equity Definitions is hereby   amended (i) by inserting the parenthetical “(including, for the   avoidance of doubt and without limitation, the effectiveness, adoption or   promulgation of new regulations authorized or mandated by existing statute)”   at the end of clause (A) thereof; (ii) by the replacement of the   word “Shares” with “Hedge Positions” in clause (X) thereof;   (iii) by adding the phrase “or announcement” immediately after the   phrase “due to the promulgation” in the third line thereof and adding the   phrase “formal or informal” before the word “interpretation” in the same   line; (iv) immediately following the word “Transaction” in clause   (X) thereof, adding the phrase “in the manner contemplated by the   Hedging Party on the Trade Date”; and (v) adding the words “provided that, in the case of clause (Y) hereof and   any law, regulation or interpretation, the consequence of such law,   regulation or interpretation is applied in the same manner by Dealer to all   of its similarly situated counterparties and/or similar transactions” after the   semi-colon in the last line thereof.
    
	
 
    	
 
    	
 
    
	
Failure to Deliver:
    	
 
    	
Not Applicable.
    
	
 
    	
 
    	
 
    
	
Insolvency Filing:
    	
 
    	
Applicable.
    
	
 
    	
 
    	
 
    
	
Loss of Stock Borrow:
    	
 
    	
Applicable.
    
	
 
    	
 
    	
 
    
	
Maximum Stock   Loan Rate:
    	
 
    	
200 basis points per annum.
    
	
 
    	
 
    	
 
    
	
Increased Cost of Stock Borrow:
    	
 
    	
Applicable.
    
	
 
    	
 
    	
 
    
	
Initial Stock   Loan Rate:
    	
 
    	
0 basis points per annum until August 15, 2026   and 25 basis points per annum thereafter.
    
	
 
    	
 
    	
 
    
	
Increased Cost of Hedging:
    	
 
    	
Not Applicable.
    
	
 
    	
 
    	
 
    
	
Hedging Disruption:
    	
 
    	
Applicable (except if such Hedging Disruption arises   as a result of (1) a failure of a system within the control of Dealer or   (2) the possession of material non-public information with respect to   the issuer of the Shares by those persons engaged in Dealer’s hedging   activities); provided that:

 

(i)                           Section 12.9(a)(v) of   the Equity Definitions is hereby amended by (a) inserting the following   words at the end of clause (A) thereof: “in the manner contemplated by   the Hedging Party on the Trade Date” and (b) inserting the following   phrases at the end of such Section:
    

 

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“; provided that   any such inability that occurs solely due to the deterioration of the   creditworthiness of the Hedging Party shall not be deemed a Hedging   Disruption. 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, and which   constitute an integral element of the Hedging Party’s hedging activities with   respect to any relevant Transaction, must be available on commercially   reasonable pricing terms.”; and

 

(ii)                        Section 12.9(b)(iii) of   the Equity Definitions is hereby amended by inserting in the third line   thereof, after the words “to terminate the Transaction”, the words “if all of   the Transaction is affected by such Hedging Disruption or, if less than all   of the Transaction is affected by such Hedging Disruption, the portion of the   Transaction so affected”.
    
	
 
    	
 
    	
 
    
	
Hedging Party:
    	
 
    	
Dealer [or an affiliate of Dealer that is involved   in the hedging of the Transaction] for all applicable Additional Disruption   Events; provided that, when making any   determination or calculation as “Hedging Party,” Dealer [or such affiliate]   shall be bound by the same obligations relating to required acts of the   Calculation Agent as set forth in Section 1.40 of the Equity Definitions   and this Confirmation as if the Hedging Party were the Calculation Agent.
    
	
 
    	
 
    	
 
    
	
Determining Party:
    	
 
    	
Dealer for all applicable Extraordinary Events; provided that, when making any determination or   calculation as “Determining Party,” Dealer shall be bound by the same   obligations relating to required acts of the Calculation Agent as set forth   in Section 1.40 of the Equity Definitions and this Confirmation as if   the Determining Party were the Calculation Agent.
    
	
 
    	
 
    	
 
    
	
Acknowledgements:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable.
    
	
 
    	
 
    	
 
    
	
Agreements and Acknowledgements
    	
 
    	
 
    
	
Regarding Hedging Activities:
    	
 
    	
Applicable.
    
	
 
    	
 
    	
 
    
	
Additional Acknowledgements:
    	
 
    	
Applicable.
    

 

Mutual Representations: Each of Dealer and Counterparty represents and warrants to, and agrees with, the other party that:

 

(i)                                     Tax Disclosure.  Notwithstanding anything to the contrary herein, in the Equity Definitions or in the Agreement, and notwithstanding any express or implied claims of exclusivity or proprietary rights, the

 

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parties (and each of their employees, representatives or other agents) are authorized to disclose to any and all persons, beginning immediately upon commencement of their discussions and 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 by either party to the other relating to such tax treatment and tax structure.

 

(ii)                                  Commodity Exchange Act.  It is an “eligible contract participant” within the meaning of the U.S. Commodity Exchange Act, as amended (the “CEA”).  The Transaction has been subject to individual negotiation by the parties.  The Transaction has not been executed or traded on a “trading facility” as defined in the CEA.

 

(iii)                               Securities Act.  It is a “qualified institutional buyer” as defined in Rule 144A under the Securities Act.

 

(iv)                              (A) It is acting for its own account, and it has made its own independent decisions to enter into the Transaction and as to whether the Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary, (B) it is not relying on any communication (written or oral) of the other party or any of the other party’s affiliates as investment advice or as a recommendation to enter into the Transaction (it being understood that information and explanations related to the terms and conditions of the Transaction shall not be considered investment advice or a recommendation to enter into the Transaction) and (C) no communication (written or oral) received from the other party or any of the other party’s affiliates shall be deemed to be an assurance or guarantee as to the expected results of the Transaction.

 

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

 

Counterparty Representations: In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty represents, warrants, acknowledges and covenants that:

 

(i)                                     Counterparty shall immediately provide written notice to Dealer upon obtaining knowledge of the occurrence of any event that would constitute an Event of Default with respect to Counterparty, a Potential Event of Default with respect to Counterparty, a Potential Adjustment Event, a Merger Event or any other Extraordinary Event; provided, however, that should Counterparty be in possession of material non-public information regarding Counterparty, Counterparty shall not communicate such information to Dealer in connection with this Transaction until such information no longer constitutes material non-public information.

 

(ii)                                  Counterparty is not entering into the Transaction and will not make any election hereunder for the purpose of (i) creating actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or (ii) raising or depressing or otherwise manipulating the price of the Shares (or any security convertible into or exchangeable for the Shares), in either case in violation of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(iii)                               Counterparty’s most recent Annual Report on Form 10-K, taken together with all reports and other documents subsequently filed by it with the Securities and Exchange Commission pursuant to the Exchange Act, when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents) do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or

 

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necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.

 

(iv)                              Counterparty has not violated, and shall not directly or indirectly violate, any applicable law (including, without limitation, the Securities Act and the Exchange Act) in connection with the Transaction.

 

(v)                                 The Shares issuable upon exercise of all Warrants (the “Warrant Shares”) have been duly authorized and, when delivered pursuant to the terms hereof, shall be validly issued, fully-paid and non-assessable, and such issuance of the Warrant Shares shall not be subject to any preemptive or similar rights.  Counterparty shall obtain, on or prior to the Effective Date, any approval of the Exchange (to the extent such approval is required by the Exchange) for the listing or quotation on the Exchange of a number of Warrant Shares equal to the Maximum Delivery Amount, subject to notice of issuance.  Counterparty shall ensure that at all times until its delivery obligations hereunder have been met in full (a) that the total number of Shares reserved for issuance hereunder is at least equal to the Maximum Delivery Amount and (b) that a number of Warrant Shares equal to the Maximum Delivery Amount shall remain listed on the Exchange.

 

(vi)                              Counterparty is not as of the Trade Date, and shall not be on the Effective Date (in each case after giving effect to the transactions contemplated to occur on such date pursuant hereto), “insolvent” (as such term is defined in Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)), and on each such date Counterparty would be able to purchase 60,987,900 Shares in compliance with the laws of the jurisdiction of Counterparty’s incorporation or organization.

 

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

 

(viii)                        Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Dealer is not making any representations or warranties with respect to the treatment of the Transaction under ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, ASC Topic 480, Distinguishing Liabilities from Equity and ASC Topic 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity (or any successor issue statements), or under any other accounting guidance.

 

(ix)                              Counterparty understands, agrees and acknowledges that no obligations of Dealer to it hereunder, if any, shall be entitled to the benefit of deposit insurance and that such obligations shall not be guaranteed by any affiliate of Dealer or any governmental agency.

 

(x)                                 Counterparty shall deliver to Dealer on the Effective Date an opinion (or opinions) of counsel, dated as of such date and reasonably acceptable to Dealer in form and substance, with respect to (i) valid existence of Counterparty, (ii) due authorization, execution and delivery of this Confirmation, (iii) due authorization of the Warrant Shares, as well as their valid issuance and fully-paid and non-assessable status when delivered pursuant to the terms hereof and (iv) no conflict of the Transaction with (w) applicable federal laws of the United States, (x) applicable laws of the State of New York and the State of Nevada, (y) any provision of its constitutional documents (including its articles of incorporation and by-laws) and (z) any material agreement filed as an exhibit to Counterparty’s most recent Annual Report on Form 10-K and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K.

 

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(xi)                              On each anniversary of the Trade Date, upon request by Dealer, Counterparty shall deliver to Dealer an officer’s certificate, signed by an authorized officer, stating the number of Available Shares (as defined in the provision titled “Limitation On Delivery of Shares” below).

 

(xii)                           To the knowledge of Counterparty and assuming that none of Dealer or its affiliates owns or holds (however defined) any Shares other than in connection with the Transaction, no state or local (including non-U.S. jurisdictions) or non-U.S. federal law, rule, regulation or regulatory order applicable to the Shares or the Issuer would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates having the power to vote, owning or holding (however defined) Shares; provided that Counterparty makes no representation or warranty regarding any such requirement that is applicable generally to the ownership of equity securities by Dealer or any of its affiliates solely as a result of it or any of such affiliates being a financial institution, investment advisor or broker-dealer.

 

(xiii)                        During the period starting on the first Expiration Date and ending on the last Expiration Date (the “Settlement Period”), the Shares or securities that are convertible into, or exchangeable or exercisable for, Shares will not be subject to a “restricted period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”), unless Counterparty has provided written notice to Dealer of such “restricted period” not later than the Scheduled Trading Day immediately preceding the first day of such “restricted period”. Counterparty acknowledges that any such notice may give rise to a Regulatory Disruption or a postponement pursuant to “Right to Extend” below and acknowledges that the proviso to clause (i) under this “Counterparty Representations” section shall apply to any such notice.

 

(xiv)                       On each day during the Settlement Period, neither Counterparty nor any “affiliate” or “affiliated purchaser” (each as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable or exercisable for Shares, except through Dealer; provided that this clause (xiii) shall not apply to the following: (a) privately negotiated purchases of Shares (or any security convertible into or exchangeable for Shares), so long as such purchases would not reasonably be expected to result in on-market purchases; (b) purchases of Shares pursuant to exercises of stock options granted to former or current employees, officers, directors, independent contractors or other affiliates of Counterparty, including the withholding and/or purchase of Shares from holders of such options to satisfy payment of the option exercise price and/or satisfy tax withholding requirements in connection with the exercise of such options; (c) purchases of Shares from holders of performance shares or units or restricted shares or units to satisfy tax withholding requirements in connection with vesting; (d) the conversion or exchange by holders of any convertible or exchangeable securities of the Counterparty previously issued; or (e) purchases of Shares effected by or for a plan by an agent independent of the Counterparty that satisfy the requirements of Rule 10b-18(a)(13)(ii).

 

(xv)                          Counterparty (A) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least USD50 million.

 

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

 

Miscellaneous:

 

No Set-Off.  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, and each party hereby waives any such right of setoff.

 

Qualified Financial Contracts.  It is the intention of the parties that (a) the Transaction shall constitute a “qualified financial contract” within the meaning of 12 U.S.C. Section 1821(e)(8)(D)(i) and (b) a Non-defaulting Party’s rights under Sections 5 and 6 of the Agreement constitute rights of the kind referred to in 12 U.S.C. Section 1821(e)(8)(A).

 

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

 

Status of Claims in Bankruptcy.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to Dealer rights with respect to the Transaction that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to the Transaction outside of Counterparty’s bankruptcy; 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.

 

No Collateral.  Notwithstanding any provision of this Confirmation, the Agreement, Equity Definitions, or any other agreement between the parties to the contrary, the obligations of Counterparty under the Transaction are not secured by any collateral.

 

Securities Contract; Swap Agreement.  The parties hereto agree and acknowledge that Dealer is a “financial institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code.  The parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment” or a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” a “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Section 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

 

Alternative Calculations and Counterparty Payment on Early Termination and on Certain Extraordinary Events.  If Counterparty owes Dealer any amount in connection with the Transaction pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the case of an Extraordinary Event (x) that is within Counterparty’s control or (y) as a result of which the Shares have changed into cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the case of 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 or a Termination Event that resulted from an event or events outside Counterparty’s control) (a “Counterparty Payment Obligation”), Counterparty shall satisfy any such Counterparty Payment Obligation by delivery of

 

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Termination Delivery Units (as defined below) unless Counterparty (A) gives irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 a.m. and 4:00 p.m. New York time on the Early Termination Date or other date the Transaction is terminated, as applicable (“Notice of Cash Termination”) and (B) remakes the representation set forth under “No Material Non-Public Information” below on the date of such notice; provided that Dealer shall have the right, in its sole discretion and notwithstanding a Notice of Cash Termination, to elect to require Counterparty to satisfy its Counterparty Payment Obligation by delivery of Termination Delivery Units.  If Counterparty shall deliver Termination Delivery Units as set forth herein, on a date determined by the Calculation Agent that is within a commercially reasonable period of time following the determination by the Calculation Agent of the number of Termination Delivery Units, Counterparty shall deliver to Dealer a number of Termination Delivery Units having a cash value equal to the amount of such Counterparty Payment Obligation (as determined by the Calculation Agent in good faith and in a commercially reasonable manner), subject to the provisions set forth under “Registration/Private Placement Procedures” below and the provisions of Sections 9.8, 9.9, 9.11 (modified as described above) and 9.12 of the Equity Definitions shall be applicable, except that all references to “Shares” shall be read as references to “Termination Delivery Units”.

 

“Termination Delivery Unit” means one Share or, if the Shares have changed into cash or any other property or the right to receive cash or any other property as the result of an Insolvency, Nationalization, Merger Event or Tender Offer, a unit consisting of the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization, Merger Event or Tender Offer.  If such Insolvency, Nationalization, Merger Event or Tender Offer involves a choice of consideration to be received by holders, the Calculation Agent shall determine the composition of such consideration in its commercially reasonable discretion.

 

Registration/Private Placement Procedures.  If, in the good faith, reasonable judgment of Dealer based on advice of counsel, any Shares or Termination Delivery Units deliverable to Dealer hereunder, for any reason, would be in the hands of Dealer subject to any applicable restrictions on transfer (including, without limitation, any registration or qualification requirement or prospectus delivery requirement for such Shares or Termination Delivery Units) pursuant to any applicable federal or state securities law or otherwise (including, without limitation, any such requirement arising under Section 5 of the Securities Act as a result of such Shares or Termination Delivery Units being “restricted securities”, as such term is defined in Rule 144) (such Shares or Termination Delivery Units, “Restricted Shares”), then delivery of such Restricted Shares shall be effected pursuant to either clause (i) or (ii) of Annex A hereto at the sole election of Counterparty, unless waived by Dealer. Notwithstanding the foregoing, solely in respect of any Warrants exercised or deemed exercised on any Exercise Date, Counterparty shall elect, prior to the first Settlement Date for the first Exercise Date (or, if later, prior to the third Scheduled Trading Day following the date of notification by Dealer of the need for such settlement procedures), a Private Placement Settlement (as defined in Annex A hereto) or Registration Settlement (as defined in Annex A hereto) for all deliveries of Restricted Shares for all such Exercise Dates which election shall be applicable to all Settlement Dates for such Warrants and the procedures in clause (i) or clause (ii) of Annex A hereto shall apply for all such delivered Restricted Shares on an aggregate basis commencing after the final Settlement Date for such Warrants. The Calculation Agent shall make commercially reasonable adjustments to settlement terms and provisions under this Confirmation to reflect a single Private Placement Settlement or Registration Settlement for such aggregate Restricted Shares delivered hereunder.  If the Private Placement Settlement or the Registration Settlement shall not be effected as set forth in clauses (i) or (ii) of Annex A, as applicable, then failure to effect such Private Placement Settlement or such Registration Settlement shall constitute an Event of Default with respect to which Counterparty shall be the Defaulting Party.

 

Share Deliveries.  Counterparty acknowledges and agrees that, to the extent that Dealer (or its affiliate) is not then an affiliate, as such term is used in Rule 144, of Counterparty and has not been such an affiliate of Counterparty for 90 days (it being understood that Dealer or its affiliate shall not be considered such an affiliate of Counterparty solely by reason of its right to receive Shares pursuant to a Transaction hereunder), any Shares or Termination Delivery Units delivered hereunder either prior to or after the first anniversary of the Premium

 

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Payment Date shall be eligible for resale under Rule 144 or any successor provision at all times following such first anniversary, and Counterparty agrees that any Shares or Termination Delivery Units delivered after such first anniversary shall not bear any legends restricting, or referring to restrictions on, the resale of such securities, and, with respect to any Shares or Termination Delivery Units delivered prior to such first anniversary, on such first anniversary Counterparty shall remove, or cause the transfer agent for such Shares or Termination Delivery Units to remove, any legends referring to any restrictions on resale under the Securities Act from the certificates representing such Shares or Termination Delivery Units, without any requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Dealer or such affiliate.  Counterparty further agrees that with respect to any Shares or Termination Delivery Units delivered hereunder at any time after 6 months from the Premium Payment Date but prior to 1 year from the Premium Payment Date, to the extent that Counterparty then satisfies the current information requirement of Rule 144, Counterparty shall promptly remove, or cause the transfer agent for such Shares or Termination Delivery Units to remove, any legends referring to any such restrictions or requirements from the certificates representing such Share or Termination Delivery Units upon delivery by Dealer or its affiliate to Counterparty or such transfer agent of any customary seller’s and broker’s representation letters in connection with resales of such Shares or Termination Delivery Units pursuant to Rule 144, without any further requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Dealer or such affiliate. Counterparty further agrees that Shares or Termination Delivery Units delivered hereunder prior to the date that is 6 months from the Premium Payment Date may be freely transferred among Dealer and its affiliates, and Counterparty shall effect such transfer without any further action by Dealer or its affiliates.  Notwithstanding anything to the contrary herein, Counterparty agrees that any delivery of Shares or Termination Delivery Units shall be effected by book-entry transfer through the facilities of the Clearance System if, at the time of such delivery, the certificates representing such Shares or Termination Delivery Units would not contain any restrictive legend as described above.  Notwithstanding anything to the contrary herein, to the extent the provisions of Rule 144 or any successor rule are amended, or the applicable interpretation thereof by the Securities and Exchange Commission or any court changes after the Trade Date, Counterparty shall in good faith cooperate with Dealer to the extent necessary, if in the opinion of counsel of Counterparty, any amendments or modifications to the terms hereof are appropriate to comply with Rule 144, including Rule 144(b) or any successor provision, as in effect at the time of delivery of the relevant Shares or Termination Delivery Units.

 

No Material Non-Public Information.  Counterparty represents and warrants to Dealer that as of the date hereof it is not aware of any material nonpublic information concerning itself, the Shares or option contracts related to the Shares.

 

Limit on Beneficial Ownership.  Notwithstanding any other provisions hereof, Dealer may not exercise any Warrant hereunder, Automatic Exercise shall not apply with respect thereto, and no delivery hereunder (including pursuant to provisions opposite the headings “Alternative Calculations and Counterparty Payments on Early Termination and on Certain Extraordinary Events,” “Registration/Private Placement Procedures,” “Limitation on Delivery of Shares” or Annex A) shall be made, to the extent (but only to the extent) that the receipt of any Shares upon such exercise or delivery [(after taking into account any Shares deliverable pursuant to the Confirmation re: Base Warrant Transaction dated August 2, 2016 between Dealer and Counterparty (the “Base Warrant Confirmation”))](1) would result in the Section 16 Equity Percentage (as defined below) exceeding 9.5% or the existence of an Excess Ownership Position as set forth in clause (2) of the definition thereof.  Any purported delivery hereunder shall be void and have no effect to the extent (but only to the extent) that such delivery would result in the Section 16 Equity Percentage (as defined below) exceeding 9.5% or the existence of such an Excess Ownership Position.  If any delivery owed to Dealer or exercise hereunder is not made, in whole or in part, as a result of this provision, Counterparty’s obligation to make such delivery and Dealer’s right to exercise a Warrant shall not be extinguished and Counterparty shall make such delivery as promptly as practicable after, but in no event later than one Clearance System Business Day after, Dealer gives notice to

 

(1) Include for Additional Warrant Confirmation.

 

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Counterparty that such exercise or delivery would not result in the Section 16 Equity Percentage (as defined below) exceeding 9% or the existence of such an Excess Ownership Position.

 

Repurchase Notices.  Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, provide Dealer with a written notice of such repurchase (a “Repurchase Notice”) on such day if, following such repurchase, the Warrant Equity Percentage (as defined below) is (a) equal to or greater than 4.5% and (b) greater by 0.5% or more than the Warrant Equity Percentage set forth in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater by 0.5% or more than the Warrant Equity Percentage as of the date hereof).  The “Warrant Equity Percentage” as of any day is the fraction, expressed as a percentage, of (1) the numerator of which is the sum of (A) the product of the Number of Warrants and the Warrant Entitlement and (B) the number of Shares underlying any other warrant transaction between Counterparty as seller and Dealer as buyer and (2) the denominator of which is the number of Shares outstanding on such day.  Counterparty agrees to indemnify and hold harmless Dealer and its affiliates and their respective officers, directors, employees, affiliates, advisors, agents and controlling person (each, an “Indemnified Person”) from and against any and all losses (including losses relating to Dealer’s hedging activities as a consequence of becoming an “insider” as defined under Section 16 of the Exchange Act, including without limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to this Transaction), claims, damages, judgments, liabilities and reasonable expenses (including reasonable attorney’s fees), joint or several, which an Indemnified Person actually 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 herein, and to reimburse, upon written request, each of such Indemnified Persons for any reasonable legal or other expenses incurred (and supported by invoices or other documentation setting forth in reasonable detail such expenses) in connection with investigating, preparing for, providing testimony or other evidence in connection with or defending any of the foregoing.  If any such suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the Indemnified Person, such Indemnified Person shall promptly notify 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 be relieved from liability to the extent that the Indemnified Person fails promptly to notify Counterparty of any action commenced against it in respect of which indemnity may be sought hereunder; provided that failure to notify Counterparty (x) shall not relieve Counterparty from any liability hereunder to the extent it is not prejudiced as a result thereof and (y) shall not, in any event, relieve Counterparty from any liability that it may have otherwise than on account of this indemnity agreement.  Counterparty shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, 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 such proceeding contemplated by this paragraph that is pending or threatened in respect of which any Indemnified Person is a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding on terms reasonably satisfactory to such Indemnified Person.  If the indemnification provided for in this paragraph is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then Counterparty, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities.  The remedies provided for in this paragraph are not exclusive and shall not limit any rights or remedies that 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.

 

Limitation On Delivery of Shares.  Notwithstanding anything herein or in the Agreement to the contrary, in no event shall Counterparty be required at any time to deliver any Shares hereunder to the extent that the number of Shares otherwise deliverable would exceed two times the Number of Shares (the “Maximum Delivery Amount”).  Notwithstanding anything to the contrary in the Agreement, this Confirmation or the Equity

 

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Definitions, in no event shall the Maximum Delivery Amount be subject to adjustment, other than any adjustment that, to the extent that such adjustment would cause the Maximum Delivery Amount to exceed the number of Available Shares, results from actions of Counterparty or events within Counterparty’s control. Counterparty represents and warrants (which shall be deemed to be repeated on each day that the Transaction is outstanding) that the Maximum Delivery Amount is equal to or less than the number of authorized but unissued Shares of Counterparty that are not reserved for future issuance in connection with transactions in the Shares other than the Transaction (such Shares, the “Available Shares”).  In the event that, notwithstanding the preceding sentence, Counterparty shall not have delivered the full number of Shares otherwise deliverable hereunder because Counterparty has insufficient authorized but unissued Shares that are not reserved for future issuance under transactions other than the Transaction (the resulting deficit, the “Deficit Shares”), Counterparty shall be continually obligated to deliver, from time to time until the full number of Deficit Shares have been delivered pursuant to this paragraph, Shares when, and to the extent, that (A) Shares are repurchased, acquired or otherwise received by Counterparty or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (B) authorized and unissued Shares previously reserved for issuance in respect of other transactions become no longer so reserved and (C) Counterparty additionally authorizes any unissued Shares that are not reserved for such other transactions.  Counterparty shall immediately notify Dealer of the occurrence of any of the foregoing events (including the number of Shares subject to clause (A), (B) or (C) and the corresponding number of Shares to be delivered) and promptly deliver such Shares thereafter.  Notwithstanding the provisions of Section 5 of the Agreement, in the event of a failure by Counterparty to comply with the agreement set forth in this provision, there shall be no grace period for remedy of such failure.

 

Additional Termination Event.  The occurrence of any of the following shall constitute an Additional Termination Event with respect to which (1) Counterparty shall be the sole Affected Party and (2) the Transaction shall be the sole Affected Transaction; provided that with respect to any Additional Termination Event, Dealer may choose to treat part of the Transaction as the sole Affected Transaction, and, upon termination of the Affected Transaction, a Transaction with terms identical to those set forth herein except with a Number of Warrants equal to the unaffected number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full force and effect:

 

(i)                                     Dealer determines, in its reasonable judgment based on the advice of counsel, that it is advisable to terminate a portion of the Transaction so that Dealer’s related commercially reasonable hedging activities will comply with applicable securities laws, rules or regulations;

 

(ii)                                  (a) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act, other than Counterparty, its wholly owned subsidiaries, its and their employee benefit plans, and the Principal or a Related Party, as defined below, has filed a Schedule TO or any other schedule, form or report under the Exchange Act disclosing that such person or group has become, directly or indirectly, the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of (i) Counterparty’s common equity representing more than 50% of the voting power of Counterparty’s common equity or (ii) more than 50% of the then outstanding Shares; (b) the Principal or a Related Party has filed a Schedule TO or any other schedule, form or report under the Exchange Act disclosing that the Principal and the Related Parties, taken together, have acquired, directly or indirectly, “beneficial ownership,” within the meaning of Rule 13d-3 under the Exchange Act, of more than ten percent of the then outstanding Shares, excluding any Shares acquired by the Principal or any Related Party (i) on or prior to August 2, 2016, (ii) as a result of the conversion of any shares of Counterparty’s Class B common stock, par value $0.01 per share, into Shares, (iii) under any equity incentive plan or other compensatory plan, contract or arrangement of Counterparty or any of its subsidiaries, (iv) as a result of any bona fide estate planning (including in connection with any share deposit, contribution, annuity, payment or release involving any grantor retained annuity trust existing now or from time to time) or (v) from Counterparty (including as a result of participation in any offer or sale of Shares by Counterparty). provided that (x) no Additional Termination Event shall be deemed to occur pursuant to this clause (b) that is attributable to a decrease in the number of outstanding Shares after August 2, 2016 as a result of any repurchase of Shares by the Counterparty or any of its subsidiaries from time to time and (y) for purposes of the calculations under this clause (b), any repurchase by Counterparty or any of its subsidiaries of Shares shall be excluded (as if no such repurchase had been effected) in determining the

 

19

 

number of outstanding Shares at any time; or (c) the Principal or a Related Party has filed a Schedule TO or any other schedule, form or report under the Exchange Act disclosing that the Principal and the Related Parties, taken together, have acquired, directly or indirectly, “beneficial ownership,” within the meaning of Rule 13d-3 under the Exchange Act, of more than 50% of the then outstanding Shares, excluding any Shares described in sub-clauses (i) through (v) of the immediately preceding clause (b), but without giving effect to the proviso in such clause (b); or

 

(iii)                               the consummation of (A) any recapitalization, reclassification or change of the Shares (other than changes resulting from a subdivision or combination and other than changes only in par value, or from par value to no par value or from no par value to par value) as a result of which all of the Shares would be converted into, or exchanged for, stock, other securities, other property or assets; (B) any share exchange, consolidation or merger of Counterparty pursuant to which all of the Shares will be converted into cash, securities or other property or assets (or any combination thereof); or (C) any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of Counterparty’s and its subsidiaries consolidated assets, taken as a whole, to any person other than one of Counterparty’s wholly owned subsidiaries.

 

Any transaction or transactions (a) in which at least 90% of the consideration received or to be received by holders of Shares, excluding cash payments for fractional shares and cash payments made in respect of dissenters’ appraisal rights, in connection with such transaction or transactions consists of shares of common stock that are listed or quoted on any of The New York Stock Exchange, The NASDAQ Global Market or The NASDAQ Global Select Market (or any of their respective successors), or which will be so listed or quoted when issued or exchanged in connection with such transaction or transactions and (b) as a result of which the “Shares” are composed of such consideration shall not constitute an Additional Termination Event pursuant to clause (ii) or clause (iii) above.

 

For purposes of clause (ii) above, (A) “Principal” means Charles W. Ergen and “Related Party” means, with respect to the Principal, (a) the spouse and each immediate family member of the Principal and (b) each trust, corporation, partnership or other entity of which the Principal or the spouse or immediate family member of the Principal beneficially holds an 80% or more controlling interest and (B) if any transaction in which the Shares are replaced by the securities of another entity occurs, following any lapse of the time period during which the Non-affected Party could exercise its right to designate an Early Termination Date in respect of the relevant Additional Termination Event (or, in the case of a transaction that would have been an Additional Termination Event but for the immediately preceding paragraph, following the effective date of such transaction), references to Counterparty in clauses (ii) and (iii) above shall instead be references to such other entity.

 

Notwithstanding anything to the contrary herein or in the Equity Definitions or the Agreement, any Counterparty Payment Obligation shall, for all purposes, be calculated without regard to the provisions set forth under “Limitation on Delivery of Shares” above; provided that the number of Shares deliverable pursuant to the provisions set forth under “Alternative Calculations and Counterparty Payment on Early Termination and on Certain Extraordinary Events” above (if applicable) shall not exceed the applicable Maximum Delivery Amount.

 

Right to Extend.  Dealer may postpone any Exercise Date or Settlement Date or any other date of valuation or delivery with respect to some or all of the relevant Warrants (in which event the Calculation Agent shall make appropriate adjustments to the Net Share Amount with respect to one or more Components), if Dealer determines, in its commercially reasonable judgment and, in respect of clause (ii) below, based on the advice of counsel, that such extension is reasonably necessary to (i) preserve Dealer’s (or its affiliate’s) commercially reasonable hedging or hedge unwind activity hereunder in light of existing liquidity conditions in the cash market, the stock loan market or any other relevant market (but only if there is a material decrease in liquidity relative to Dealer’s commercially reasonable expectations on the Trade Date) or (ii) to enable Dealer (or its affiliate) to effect purchases of Shares in connection with its commercially reasonable hedging, hedge unwind or settlement activity hereunder in a manner that would, if Dealer (or such affiliate) were Counterparty or an affiliate of Counterparty, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures adopted in good faith by Dealer (so long as such policies and procedures are applied generally to

 

20

 

counterparties similar to Counterparty and transactions similar to the Transaction).

 

Transfer or Assignment.  Notwithstanding any provision of the Agreement to the contrary, Dealer may, after the Effective Date and subject to applicable law, freely transfer and assign all (but not less than all) of its rights and obligations under the Transaction without the consent of Counterparty to any of its affiliates; provided that Counterparty will not be required, as a result of such transfer or assignment, to pay or deliver the transferee an amount under Section 2(d)(i)(4) of the Agreement greater than the amount, if any, that Counterparty would have been required to pay or deliver to Dealer in the absence of such transfer or assignment.

 

If, as determined in Dealer’s sole discretion, (a) at any time (1) the Section 16 Equity Percentage exceeds 9% or (2) Dealer, Dealer Group (as defined below) or any person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under any federal, state or local (including non-U.S.) laws, rules, regulations or regulatory orders 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, or could be reasonably viewed as meeting any of the foregoing, in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting, registration, filing or notification obligations or other requirements (except for any filings of Form 13F, Form 13H, Schedule 13D or Schedule 13G under the Exchange Act, but including obtaining prior approval by a state, federal or non-U.S. regulator) of a Dealer Person, or is reasonably likely (as determined by the Calculation Agent) to result in an adverse effect on a Dealer Person, under Applicable Restrictions, as determined by Dealer in its reasonable discretion, and with respect to which such requirements have not been met or the relevant approval has not been received minus (y) 1% of the number of Shares outstanding on the date of determination (either such condition described in clause (1) or (2), an “Excess Ownership Position”), and (b) Dealer is unable, after commercially reasonable efforts, to effect a transfer or assignment on pricing and terms and within a time period reasonably acceptable to it of all or a portion of this Transaction pursuant to the preceding paragraph such that an Excess Ownership Position no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of this Transaction, such that an Excess Ownership Position no longer exists following such partial termination.  In the event that Dealer so designates an Early Termination Date with respect to a portion of this Transaction, a payment shall be made pursuant to Section 6 of the Agreement as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to this Transaction and a Number of Warrants equal to the Terminated Portion (allocated among the Components thereof in the discretion of Dealer), (ii) Counterparty shall be the sole Affected Party with respect to such partial termination and (iii) such Transaction shall be the only Terminated Transaction (and, for the avoidance of doubt, the provisions set forth under the caption “Alternative Calculations and Counterparty Payment on Early Termination and on Certain Extraordinary Events” shall apply to any amount that is payable by Counterparty to Dealer pursuant to this sentence).  Dealer shall notify Counterparty of an Excess Ownership Position with respect to which it intends to seek a transfer or assignment promptly after becoming aware of such an Excess Ownership Position. The “Section 16 Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates subject to aggregation with Dealer for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act and all persons who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer (collectively, “Dealer Group”) “beneficially own” (within the meaning of Section 13 of the Exchange Act) without duplication on such day (or, to the extent that the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such number) and (B) the denominator of which is the number of Shares outstanding on such day.

 

Designation by Dealer.  Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations.  Dealer shall be discharged of its obligations to Counterparty to (and only to) the extent of any such performance.

 

21

 

Amendments to Equity Definitions.  (a) Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:  (i) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); (ii) replacing “will lend” with “lends” in subsection (B); and (iii) replacing the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares” with the phrase “such Lending Party does not lend Shares” in the penultimate sentence; and (b) Section 12.9(b)(v) of the Equity Definitions is hereby amended by:  (i) adding the word “or” immediately before subsection “(B)” and deleting the comma at the end of subsection (A); (ii) (1) deleting subsection (C) in its entirety, (2) deleting the word “or” immediately preceding subsection (C) and (3) deleting the penultimate sentence in its entirety and replacing it with the sentence “The Hedging Party will determine the Cancellation Amount payable by one party to the other”; and (iii) deleting subsection (X) in its entirety and the words “or (Y)” immediately following subsection (X).

 

[Insert Dealer agency provisions, if any].

 

Severability; Illegality.  Notwithstanding anything to the contrary in the Agreement, if compliance by either party with any provision of the Transaction would be unenforceable or illegal, (a) the parties shall negotiate in good faith to resolve such unenforceability or illegality in a manner that preserves the economic benefits of the transactions contemplated hereby and (b) the other provisions of the Transaction shall not be invalidated, but shall remain in full force and effect.

 

Waiver of Jury Trial.  EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE TRANSACTION.  EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.

 

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)).

 

Agreements and Acknowledgements Regarding Hedging. Counterparty understands, acknowledges and agrees that: (A) at any time on and prior to the Expiration Date, Dealer and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Transaction; (B) Dealer and its affiliates also may be active in the market for Shares other than in connection with hedging activities in relation to the Transaction; (C) Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in securities of Counterparty shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Relevant Prices; and (D) any market activities of Dealer and its affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the Relevant Prices, each in a manner that may be adverse to Counterparty.

 

22

 

Early Unwind.  In the event the sale of the [“Firm Securities”](2) [“Option Securities”](3)(as defined in the Purchase Agreement dated as of [the Trade Date] [August 2, 2016] between Counterparty and Deutsche Bank Securities Inc.) is not consummated with the initial purchaser thereof for any reason by the close of business in New York on August 8, 2016 (or such later date as agreed upon by the parties) (August 8, 2016 or such later date as agreed upon being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (a) the Transaction and all of the respective rights and obligations of Dealer and Counterparty under the Transaction shall be cancelled and terminated and (b) 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.  Dealer and Counterparty represent and acknowledge to the other that, upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.

 

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

 

Tax Form Delivery.  For the purposes of Section 4(a)(i) and (ii) of the Agreement, (A) Counterparty agrees to deliver an executed United States Internal Revenue Service Form W-9 (or any successor thereto), (i) upon execution of the Confirmation; (ii) promptly upon reasonable demand by Dealer; and (iii) promptly upon learning that any such document previously provided by Counterparty has become obsolete or incorrect and (B) Dealer agrees to deliver to Counterparty a properly executed U.S. Internal Revenue Service Form W-9 (or any successor thereto), (i) upon execution of the Confirmation; (ii) promptly upon reasonable demand by Counterparty; and (iii) promptly upon learning that any such document previously provided by Dealer has become obsolete or incorrect.

 

Additional Tax Matters.

 

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

 

(ii)           “Indemnifiable Tax” as defined in Section 14 of the Agreement shall not include any tax imposed under Section 871(m) of the Code or any regulations issued thereunder.

 

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

 

(2) Insert for Base Warrant Confirmation.

(3) Insert for Additional Warrant Confirmation.

23

 

the Agreement.  For the purposes of this section:

 

(a)          Dealer is a Portfolio Data Sending Entity and Counterparty is a Portfolio Data Receiving Entity;

 

(b)          Dealer and Counterparty may use a Third Party Service Provider, and each of Dealer and Counterparty consents to such use including the communication of the relevant data in relation to Dealer and Counterparty to such Third Party Service Provider for the purposes of the reconciliation services provided by such entity;

 

(c)           The Local Business Days for such purposes in relation to Dealer are New York, and in relation to Counterparty are Colorado;

 

(d)          The following are the applicable email addresses:

 

Portfolio Data:                                  Dealer: [          ];

 

Counterparty: [          ];

 

Notice of discrepancy:                                         Dealer: [          ];

 

Counterparty: [          ];

 

Dispute Notice:                                Dealer: [          ];

 

Counterparty: [          ].

 

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

 

Governing Law; Jurisdiction:      THIS CONFIRMATION AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.  THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

 

Contact information. For purposes of the Agreement (unless otherwise specified in the Agreement), the addresses for notice to the parties shall be:

 

(a) Counterparty

 

DISH Network Corporation
 9601 South Meridian Boulevard 

 

24

 

Englewood, CO 80112
 Attention: General Counsel

Fax:  [          ]
 Tel: [          ]

 

with a copy to:

 

[          ]
 DISH Network Corporation
 9601 South Meridian Boulevard
 Englewood, CO 80112
 Fax: [          ]
 Tel: [          ]

 

(b) Dealer

 

[        ]

 

with a copy to:

 

[        ]

 

25

 

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

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning a copy to Dealer.

 

We are very pleased to have executed the Transaction with you and we look forward to completing other transactions with you in the near future.

 

Very truly yours,

 

[DEALER]

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to [Base][Additional] Warrant Confirmation]

 

 

Counterparty hereby agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

 

DISH Network Corporation

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to [Base][Additional] Warrant Confirmation]

 

 

ANNEX A

 

Registration Settlement and Private Placement Settlement

 

(i)                                     If Counterparty elects to settle the Transaction pursuant to this clause (i) (a “Private Placement Settlement”), then delivery of Restricted Shares by Counterparty shall be effected in customary private placement procedures for private placements of equity securities of companies similar to Counterparty with respect to such Restricted Shares reasonably acceptable to Dealer; provided that Counterparty may not elect a Private Placement Settlement if, on the date of its election, it has taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(a)(2) of the Securities Act for the sale by Counterparty to Dealer (or any affiliate designated by Dealer) of the Restricted Shares or the exemption pursuant to Section 4(a)(1) or Section 4(a)(3) of the Securities Act for resales of the Restricted Shares by Dealer (or any such affiliate of Dealer). Dealer or its affiliate and Counterparty shall enter into a private placement agreement that is customary in form and substance for private placements of equity securities of companies similar to Counterparty in connection with any Private Placement Settlement (including the resale of the Restricted Shares and any Make-Whole Shares by Dealer or its affiliate), which agreement shall include, without limitation, customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer and its affiliates, due diligence rights (for Dealer or its affiliate or any potential buyer of the Restricted Shares or Make-Whole Shares, as the case may be, designated by Dealer or its affiliate), opinions and certificates, and such other documentation as is customary for private placement agreements of companies similar to Counterparty, all reasonably acceptable to Dealer or its affiliate.

 

(ii)                                  If Counterparty elects to settle the Transaction pursuant to this clause (ii) (a “Registration Settlement”), then Counterparty shall promptly (but in any event no later than the beginning of the Resale Period) file and use its reasonable best efforts to make effective under the Securities Act a registration statement or supplement or amend an outstanding registration statement in form and substance reasonably satisfactory to Dealer, to cover the resale of such Restricted Shares (and any Make-whole Shares) in accordance with customary resale registration procedures for offerings of equity securities of a substantially similar size, including entry by Dealer or its affiliate and Counterparty into an underwriting agreement that is customary in form and substance for registered secondary equity offerings of a substantially similar size, including, without limitation, covenants, conditions, representations, underwriting discounts (if applicable), commissions (if applicable), indemnities, due diligence rights (for Dealer, its affiliate or any potential buyer of the Restricted Shares or Make-whole Shares, as the case may be, designated by Dealer or its affiliate), opinions and certificates, and such other documentation as is customary for equity resale underwriting agreements for offerings of equity securities of companies of comparable size and line of business, all reasonably acceptable to Dealer or its affiliate. If Dealer or its affiliate, in its sole discretion, is not satisfied with such procedures and documentation, Private Placement Settlement shall apply. If Dealer or its affiliate is satisfied with such procedures and documentation, it shall sell the Restricted Shares (or any Make-whole Shares) pursuant to such registration statement during a period (the “Resale Period”) commencing on the Exchange Business Day following delivery of such Restricted Shares (or any Make-whole Shares) and ending on the earliest of (i) the Exchange Business Day on which Dealer or its affiliate completes the sale of all Restricted Shares or, in the case of settlement of Termination Delivery Units, a sufficient number of Restricted Shares so that the realized net proceeds of such sales exceed the Counterparty Payment Obligation and (ii) the date upon which all Restricted Shares (and any Make-whole Shares) may be sold or transferred by a non-affiliate pursuant to Rule 144 (or any similar provision then in force) without any further restriction whatsoever.

 

(iii)                               If (ii) above is applicable and the Net Share Settlement Amount or the Counterparty Payment Obligation, as applicable, exceeds the realized net proceeds from such resale, or if (i) above is applicable and the Freely Tradeable Value (as defined below) of the Shares owed pursuant to the Net Share Settlement Amount, or the Counterparty Payment Obligation (in each case as adjusted pursuant to (i) above), as applicable, exceeds the realized net proceeds from such resale, Counterparty shall transfer to Dealer or its affiliate by the open of the regular trading session on

 

A-1

 

the Exchange  on the Exchange Business Day immediately following the last day of the Resale Period the amount of such excess (the “Additional Amount”), at its option, either in cash or in a number of Restricted Shares (“Make-whole Shares”, provided that the aggregate number of Restricted Shares and Make-whole Shares delivered shall not exceed the Maximum Delivery Amount) that, based on the Relevant Price on the last day of the Resale Period (as if such day was the “Valuation Date” for purposes of computing such Relevant Price), has a value equal to the Additional Amount. If Counterparty elects to pay the Additional Amount in Make-whole Shares, Counterparty shall elect whether the requirements and provisions for either Private Placement Settlement or Registration Settlement shall apply to such payment. This provision shall be applied successively until the Additional Amount is equal to zero, subject to “Limitation on Delivery of Shares”.  “Freely Tradeable Value” means the value of the number of Shares delivered to Dealer or its affiliate which such Shares would have if they were freely tradeable (without prospectus delivery) upon receipt by Dealer or its affiliate, as determined by the Calculation Agent by reference to the Relevant Price for freely tradeable Shares as of the Valuation Date, or other date of valuation used in a commercially reasonable manner to determine the delivery obligation with respect to such Shares, or by other commercially reasonable means.

 

A-2

 

ANNEX B

 

The Strike Price, Premium and Final Disruption Date for the Transaction are set forth below.

 

	
Strike Price:
    	
USD 86.0825
    	
 
    
	
 
    	
 
    	
 
    
	
Premium:
    	
USD [    ]
    	
 
    
	
 
    	
 
    	
 
    
	
Final Disruption Date:
    	
April 8, 2027.
    	
 
    

 

B-1

 

ANNEX C

 

For each Component of the Transaction, the Number of Warrants and Expiration Date is set forth below.

 

	
Component Number
    	
 
    	
Number of Warrants*
    	
 
    	
Expiration Date
    
	
1.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
2.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
3.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
4.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
5.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
6.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
7.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
8.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
9.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
10.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
11.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
12.
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
...
    	
 
    	
[   ]
    	
 
    	
[   ]
    
	
90.
    	
 
    	
[   ]
    	
 
    	
[   ]
    

 

* To be:  the product of the Number of Notes x the Conversion Rate x Dealer’s Applicable Percentage over the Number of Components

 

C-1

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