Document:

Exhibit 10.4

 

EXECUTION VERSION

 

ADDITIONAL CAPPED CALL OPTION
 TRANSACTION CONFIRMATION

 

	
Date:
    	
September 25,   2014
    
	
 
    	
 
    
	
To:
    	
TESARO, Inc.   (“Counterparty”)
    
	
 
    	
 
    
	
Telefax   No.:
    	
xxx.xxx.xxxx
    
	
 
    	
 
    
	
Attention:
    	
Tim   Pearson, Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    
	
From:
    	
Deutsche   Bank AG, London Branch (“Dealer”)
    

 

Transaction Reference Number:  600998

 

The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of the above-referenced Transaction entered into on the Trade Date specified below between you and us.  This Confirmation supplements, forms a part of, and is subject to the Master Terms and Conditions for Capped Call Option Transactions dated as of September 23, 2014 (as amended from time to time, the “Master Confirmation”) between you and us.

 

1.                                      The definitions and provisions contained in the Definitions (as such term is defined in the Master Confirmation) and in the Master Confirmation are incorporated into this Confirmation.  In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.

 

2.                                      The particular Transaction to which this Confirmation relates is entered into as part of an integrated hedging transaction of the Convertible Notes pursuant to the provisions of Treasury Regulation Section 1.1275-6.

 

3.                                      The particular Transaction to which this Confirmation relates shall have the following terms:

 

	
Trade   Date:
    	
 
    	
September 25,   2014
    
	
 
    	
 
    	
 
    
	
Effective   Date:
    	
 
    	
The   closing date of the Convertible Notes purchased by the Underwriters upon   exercise, on the date hereof, of their option pursuant to   Section 2(b) of the Underwriting Agreement.
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
As   set forth in Schedule 1 hereto.
    
	
 
    	
 
    	
 
    
	
Premium   Payment Date:
    	
 
    	
The   Effective Date
    
	
 
    	
 
    	
 
    
	
Convertible   Notes:
    	
 
    	
3.00%   Senior Convertible Notes due 2021, offered pursuant to a Prospectus   Supplement dated as of September 23, 2014 and issued by Counterparty   pursuant to the Indenture.
    
	
 
    	
 
    	
 
    
	
Number   of Units:
    	
 
    	
The   number of Convertible Notes in denominations of USD 1,000 principal amount   purchased by the Underwriters upon
    

 

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exercise,   on the date hereof, of their option pursuant to Section 2(b) of the   Underwriting Agreement (the “Relevant Convertible Notes”). For the   avoidance of doubt, the Number of Units shall be reduced by any Units that   are exercised.
    
	
 
    	
 
    	
 
    
	
Number   of Exercised Units:
    	
 
    	
For   any Conversion Date, a number of Units equal to the lesser of   (i) (a) the number of Convertible Notes in denominations of USD1,000   principal amount satisfying all of the requirements for conversion on such   Conversion Date in accordance with the terms of the Indenture minus (b) the “Number of Exercised Units” for such   Conversion Date under the Transaction evidenced by the Master Confirmation as   supplemented by the Base Capped Call Option Transaction Confirmation between   Dealer and Counterparty, dated as of the date of the Master Confirmation (the   “Base Call Option Confirmation”) and (ii) the Number of Units on   such Conversion Date.
    
	
 
    	
 
    	
 
    
	
Strike   Price:
    	
 
    	
As   of any date, an amount in USD equal to USD 1,000 divided by the Unit   Entitlement.
    
	
 
    	
 
    	
 
    
	
Cap   Price:
    	
 
    	
As   set forth in Schedule 1 hereto.
    
	
 
    	
 
    	
 
    
	
Applicable   Percentage:
    	
 
    	
40.0%
    
	
 
    	
 
    	
 
    
	
Number   of Shares:
    	
 
    	
The   product of the Applicable Percentage, the Number of Units and the Unit   Entitlement.
    
	
 
    	
 
    	
 
    
	
Expiration   Date:
    	
 
    	
The   earlier of (i) the last day on which any Convertible Notes remain   outstanding and (ii) the second “Scheduled Trading Day” (as defined in   the Indenture) immediately preceding the “Maturity Date” (as defined in the   Indenture).
    
	
 
    	
 
    	
 
    
	
Unit   Entitlement:
    	
 
    	
As   of any date, a number of Shares per Unit equal to the Conversion Rate   (determined by the Calculation Agent in accordance with the Indenture, except   without regard to any adjustments to the Conversion Rate pursuant to the   Excluded Provisions of the Indenture).
    
	
 
    	
 
    	
 
    
	
Conversion   Rate:
    	
 
    	
As   defined in the Indenture.
    
	
 
    	
 
    	
 
    
	
Indenture:
    	
 
    	
That   certain Base Indenture to be dated as of September 29, 2014 by and   between Counterparty and U.S. Bank National Association, as trustee (the “Trustee”),   pursuant to which the Convertible Notes are to be issued, as   supplemented by a Supplemental Indenture thereto to be dated as of   September 29, 2014 (the “Supplemental Indenture”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   parties acknowledge that references to the Indenture or sections of the   Supplemental Indenture herein are based on the
    

 

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Base   Indenture in effect on the date of this Confirmation and the draft of the   Supplemental Indenture last reviewed by the Dealer as of the date of this   Confirmation. If the Supplemental Indenture as executed differs from such   draft of the Supplemental Indenture, the parties shall amend this   Confirmation and the Master Confirmation in good faith to preserve the intent   of the parties. References to the Indenture or sections of the Supplemental   Indenture herein or in the Master Confirmation, subject to the foregoing, are   references to the Indenture or sections of the Supplemental Indenture as in   effect on the date of the execution of the Supplemental Indenture (the “Original   Indenture”); provided that if the Original Indenture is amended   following such date pursuant to the Merger Provision of the Indenture (any   such amendment, a “Merger Amendment”), (A) as long as the   Calculation Agent determines that such Merger Amendment appropriately adjusts   the terms of the Convertible Notes in a commercially reasonable manner to   account for the relevant Merger Event in compliance with the Merger   Provision, such references shall be deemed to refer to the Original Indenture   as so amended, and (B) otherwise, (1) such references shall be   deemed to refer to the Original Indenture as if it had been amended to   appropriately adjust the terms of the Convertible Notes to account for the   relevant Merger Event in compliance with the Merger Provision, as determined   by the Calculation Agent in a commercially reasonable manner and   (2) with respect to any exercise of Units thereafter, the Calculation   Agent shall determine the applicable Settlement Date and Delivery Obligation   pursuant to the Master Confirmation and this Confirmation, except that in   making such determinations the Calculation Agent shall refer to the relevant   provisions of the Indenture as deemed amended pursuant to sub-clause (1) above.   If the Indenture is amended following such date other than pursuant to the   Merger Provision of the Indenture and other than any amendment pursuant to   Section 8.01(i) of the Indenture that, as determined by the   Calculation Agent, conforms the Indenture to the description of the   Convertible Notes in the preliminary prospectus supplement related to the   Convertible Notes, as supplemented by the pricing term sheet related to the   Convertible Notes, without prejudice to the provisions set forth in Section 11(e) of   the Master Confirmation, (x) such amendment shall be disregarded for   purposes of the Transaction unless the parties otherwise agree in writing and   (y) with respect to any exercise of Units thereafter, the Calculation   Agent shall determine the Settlement Date and Delivery Obligation pursuant to   the Master Confirmation and this Confirmation, except that in making such   determinations, the Calculation Agent shall refer to the relevant provisions   of the Indenture without giving effect to such amendment.
    

 

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Settlement   Provision:
    	
 
    	
Section 4.03   of the Supplemental Indenture
    
	
 
    	
 
    	
 
    
	
Excluded   Provisions:
    	
 
    	
The   Make-whole Provision and Section 4.05(b) of the Supplemental   Indenture
    
	
 
    	
 
    	
 
    
	
Make-whole   Provision:
    	
 
    	
Section 4.06   of the Supplemental Indenture
    
	
 
    	
 
    	
 
    
	
Conversion   Rate Adjustment Fallback Provisions:
    	
 
    	
The   second sentence of Section 4.04(c) and the second sentence of   Section 4.04(d) of the Supplemental Indenture
    
	
 
    	
 
    	
 
    
	
Adjustment   of Prices Provision:
    	
 
    	
Section 4.05(a) of   the Supplemental Indenture
    
	
 
    	
 
    	
 
    
	
Adjustment   of Shares Provision:
    	
 
    	
Section 4.04(f) of   the Supplemental Indenture
    
	
 
    	
 
    	
 
    
	
Dilution   Provision:
    	
 
    	
The   Adjustment of Shares Provision, the Adjustment of Prices Provision and   Sections 4.04(a) through 4.04(e) of the Supplemental Indenture
    
	
 
    	
 
    	
 
    
	
Merger   Provision:
    	
 
    	
Section 4.07(a) of   the Supplemental Indenture
    
	
 
    	
 
    	
 
    
	
Tender   Offer Provision:
    	
 
    	
Section 4.04(e) of   the Supplemental Indenture
    
	
 
    	
 
    	
 
    
	
Cut-Off   Date:
    	
 
    	
The   45th “Scheduled Trading Day” (as defined in the Indenture) immediately   preceding the “Maturity Date” (as defined in the Indenture).
    
	
 
    	
 
    	
 
    
	
Affected   Portion:
    	
 
    	
With   respect to any Early Conversion Event, a number of Units equal to the lesser   of (i) (a) the number of Convertible Notes in denominations of USD   1,000 principal amount converted on the relevant Conversion Date minus (b) the “Affected Portion” (as defined in the   Base Call Option Confirmation) and (ii) the Number of Units as of the   relevant Early Termination Date.
    
	
 
    	
 
    	
 
    
	
Early   Unwind Date:
    	
 
    	
September 29,   2014, or such later date as agreed by the parties hereto.
    

 

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4.                                      Counterparty hereby agrees (a) to check this Confirmation promptly upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing correctly sets forth the terms of the agreement between us with respect to the particular Transaction to which this Confirmation relates, by manually signing this Confirmation and providing any other information requested herein or in the Master Confirmation and immediately returning an executed copy to Dealer.

 

 

	
 
    	
Yours   sincerely,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DEUTSCHE BANK AG, LONDON BRANCH
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Sanderson
    
	
 
    	
 
    	
Name:
    	
Michael   Sanderson
    
	
 
    	
 
    	
Title:
    	
Attorney   in Fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lars Kestner
    
	
 
    	
 
    	
Name:
    	
Lars   Kestner
    
	
 
    	
 
    	
Title:
    	
Attorney   in Fact
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DEUTSCHE   BANK SECURITIES INC.,
    
	
 
    	
acting   solely as Agent in connection with theTransaction
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Sanderson
    
	
 
    	
 
    	
Name:
    	
Michael   Sanderson
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lars Kestner
    
	
 
    	
 
    	
Name:
    	
Lars   Kestner
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
Confirmed   as of the
    	
 
    
	
date   first above written:
    	
 
    
	
 
    	
 
    
	
TESARO, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Timothy R. Pearson
    	
 
    
	
 
    	
Name:
    	
Timothy   R. Pearson
    	
 
    
	
 
    	
Title:
    	
EVP   and Chief Financial Officer
    	
 
    

 

[TSRO – Additional Capped Call Confirmation]

 

 

SCHEDULE 1

 

	
Premium:
    	
 
    	
USD1,086,750.00
    
	
 
    	
 
    	
 
    
	
Cap   Price:
    	
 
    	
USD45.5438Exhibit 10(m)

 

CONFIDENTIALITY AND NON-COMPETITION AGREEMENT

 

This CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (“Agreement”) is made as of this 15th day of November, 2012, by and between Cantel Medical Corp. (“Cantel”) and its subsidiaries, divisions, affiliates, successors, and assigns (collectively referred to as the “Company”), and Jorgen B. Hansen (“Employee”).

 

Background

 

A.            The Company is a leading manufacturer and provider of infection prevention and control products in the healthcare market. The Company’s products include specialized medical device reprocessing systems for renal dialysis and endoscopy, dialysate concentrates and other dialysis supplies, disposable infection control products primarily for the dental industry, water purification equipment, sterilants, disinfectants and cleaners, hollow fiber membrane filtration and separation products for medical and non-medical applications, and specialty packaging for infectious and biological specimens. The Company also provides technical maintenance for its products and offers compliance training services for the transport of infectious and biological specimens.

 

B.            The Company has developed commercially valuable technical and non-technical information, the safeguarding, secrecy, and confidentiality of which are necessary to the operation and profitability of the Company.  Furthermore, it has spent and will continue to spend considerable time and money establishing and maintaining business relationships and goodwill with its current and prospective customers, vendors, suppliers, and distributors, which relationships are vital to the continued goodwill, operation, and profitability of the Company.

 

C.            During the Employee’s employment or continued employment with the Company, the Employee (i) will have access to certain valuable proprietary confidential information developed, compiled, or utilized by the Company in its business; (ii) may or will have frequent contact with the Company’s customers, vendors, suppliers, and distributors, and (iii) may be able to control, in whole or in part, the business and relationships between the Company and its customers, vendors, suppliers, and distributors, and to take or otherwise appropriate business and relationships if and when the Employee leaves the Company’s employment.

 

D.            The Company wishes to protect such confidential information and business relationships.

 

Agreement

 

In consideration of the premises, the Employee’s continued employment by the Company, and the mutual covenants contained in this Agreement, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

 

1.             Confidential Information.  Employee acknowledges that the Company possesses confidential information, know-how, customer lists, purchasing, merchandising and selling techniques and strategies, and other information used in its operations of which Employee has or will obtain knowledge, and that the Company will suffer serious and irreparable damages and 

 

 

harm if this confidential information were disclosed to any other party or if Employee used this information to compete against the Company.  Accordingly, Employee hereby agrees that except as required by Employee’s duties to the Company, Employee, without the consent of the Company’s Board of Directors, shall not at any time during or after the Employment Period disclose or use any secret or confidential information of the Company, including, without limitation, such business opportunities, customer lists, trade secrets, formulas, techniques and methods of which Employee shall become informed during his employment, whether learned by him as an employee of the Company, as a member of its Board of Directors or otherwise, and whether or not developed by Employee, unless such information shall be or becomes public knowledge other than as a result of Employee’s direct or indirect disclosure of the same.

 

2.             Patent and Related Matters.

 

2.1          Inventions.  Employee will promptly disclose in writing to the Company complete information concerning each and every invention, discovery, improvement and idea (whether or not shown or described in writing or reduced to practice), and device, design, apparatus, process, and work of authorship, whether or not patentable, copyrightable or registerable, which is made, developed, perfected, devised, conceived or first reduced to practice by Employee, either solely or in collaboration with others, during the Employment Period, whether or not during regular working hours (hereinafter collectively referred to as the “Inventions”).  Subject to Section 2.2, Employee, to the extent that he has the legal right to do so, hereby assigns and agrees to assign to the Company any and all of Employee’s right, title and interest in and to any and all of the Inventions, and Employee acknowledges that such assigned inventions are and shall remain the property of the Company.

 

2.2          Limitation.  It is further agreed and Employee is hereby notified that the above agreement to assign the Inventions to the Company does not apply to an Invention for which no equipment, supplies, facility or confidential information of the Company was used and which was developed entirely on Employee’s own time, and

 

(i)            which does not relate (a) directly to the business of the Company or (b) to the Company’s actual or demonstrably anticipated research or development, or

 

(ii)           which does not result from any work performed by Employee for the Company.

 

2.3          Assistance.  Upon request and without further compensation therefor, but at no expense to Employee, and whether during the Employment Period or thereafter, Employee will do all lawful acts, including, but not limited to, the execution of documents and instruments and the giving of testimony, that in the opinion of the Company, its successors and assigns, may be necessary or desirable in obtaining, sustaining, reissuing, extending or enforcing United States and foreign copyrights and Letters Patent, including, but not limited to, design patents, on any and all of the Inventions, and for perfecting, affirming and recording the Company’s complete ownership and title thereto, and to cooperate otherwise in all proceedings and matters relating thereto.

 

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2.4                               Records.  Employee will keep complete, accurate and authentic accounts, notes, data and records of all the Inventions in the manner and form requested by the Company.  Such accounts, notes, data and records shall be the property of the Company, and upon its request, Employee will promptly surrender the same to it.

 

Upon the termination of his employment hereunder, Employee agrees to deliver promptly to the Company all equipment (including computers, etc.), records, manuals, books, blank forms, documents, letters, memoranda, notes, notebooks, reports, data, tables, accounts, calculations and copies thereof, which are the property of the Company or which relate in any way to the business, products, practices or techniques of the Company, and all other property, trade secrets and confidential information of the Company, including, but not limited to, all documents which in whole or in part contain any trade secrets or confidential information of the Company, which in any of these cases are in his possession or under his control.

 

3.                                      Non-interference.  Employee further agrees that for a period of two years following termination of Employee’s employment hereunder, he will not (i) induce or attempt to induce any other employee of the Company to leave the employ of the Company, or in any way interfere with the relationship between the Company and any other employee, or (ii) induce or attempt to induce any customer, supplier, franchisee, licensee, distributor or other business relation of the Company to cease doing business with the Company, or in any way interfere with the relationship between any customer, franchisee or other business relation and the Company without prior written consent of the Board of Directors of the Company.

 

4.                                      Non-Compete.  Employee agrees that for a period of six (6) months following the termination of Employee’s employment hereunder, except as a result of the breach by the Company of any material term or condition of the Executive Severance Agreement between the Company and Employee of even date herewith, Employee will not, directly or indirectly, alone or with others, individually or through or by a corporate or other business entity in which he may be interested as a partner, shareholder, joint venturer, officer, director, employee or otherwise, own, manage, control, participate in, lend his name to, or render services to or for any business within the continental United States or Canada that is directly and materially competitive with a material business of the Company, provided, however, that the foregoing shall not be deemed to prevent the ownership by Employee of up to three (3%) percent of any class of securities of any corporation which is regularly traded on any stock exchange or over-the-counter market.

 

5.                                      Enforcement.  If, at the time of enforcement of any provisions of this Section, a court of competent jurisdiction holds that the restrictions stated herein are unreasonable under the circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under such circumstances will be substituted for the stated period, scope or area.  Employee agrees that the covenants made in this Section shall be construed as an agreement independent of any other provision of this Agreement, and shall survive the termination of this Agreement.

 

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6.                                      Dispute Resolution.

 

6.1                               Subject to the provisions of Section 6.2, any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Little Falls, New Jersey by three arbitrators, one of whom shall be appointed by the Company, one of whom shall be appointed by the Executive, and the third of whom shall be appointed by the first two arbitrators.  If either the Company or the Executive fails to appoint an arbitrator within 20 days of a request in writing by the other to do so, or if the first two arbitrators cannot agree on the appointment of a third arbitrator within 20 days after the second arbitrator is designated, then such arbitrator shall be appointed by the Chief Judge of the United States District Court located in the city of Newark, New Jersey, or upon his failure to act, by the American Arbitration Association so as to enable the arbitrators to render an award within 90 days after the three arbitrators have been appointed.  Following the selection of arbitrators as set forth above, the arbitration shall be conducted promptly and expeditiously and in accordance with the rules of the American Arbitration Association.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that the Executive shall be entitled to seek specific performance of his right to be paid during the pendency of any dispute or controversy arising under or in connection with this Agreement.  The Company shall bear all of the expenses relating to any arbitration under this Agreement.

 

6.2                               The Employee recognizes that a breach or threatened breach of the provisions of Sections 1, 2 and 3 Agreement may give rise to irreparable injury to the Company, inadequately compensable in damages and, accordingly, agrees that the Company may seek and obtain injunctive relief, temporary, preliminary, or permanent, against such breach or threatened breach, in addition to recovering monetary damages from the Employee. The Employee further agrees and acknowledges that greater injury would result from a denial of injunctive relief than from a grant of such relief.

 

7.                                      Miscellaneous Provisions.

 

7.1                               Section headings are for convenience only and shall not be deemed to govern, limit, modify or supersede the provisions of this Agreement.

 

7.2                               This Agreement is entered into in the State of New Jersey and shall be governed pursuant to the laws of the State of New Jersey.  If any provision of this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal or unenforceable, the remaining provisions hereof shall continue to be fully effective.

 

7.3                               This Agreement contains the entire agreement of the parties regarding this subject matter and supersedes all prior agreements, arrangements, or understandings, whether written or oral, relating to the subject matter hereof, including, without limitation, any letters, agreements, or understandings between the Employee and the Company or any subsidiary thereof before the date hereof.  Execution of this Agreement shall supersede and terminate any existing confidentiality and/or noncompetition agreement, or the provisions of any employment agreement or other agreement related to confidentiality and/or noncompetition, entered into between the Employee and the Company or any subsidiary thereof.

 

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7.4                               This Agreement may be modified only by means of a writing signed by the party to be charged with such modification.

 

7.5                               Notices or other communications required or permitted to be given hereunder shall be in writing and shall be deemed duly given upon receipt by the party to whom sent at the respective addresses set forth below or to such other address as any party shall hereafter designate to the other in writing delivered in accordance herewith:

 

If to the Company:

Cantel Medical Corp.

150 Clove Road — 9th Floor

Little Falls, NJ  07424

Attn: CEO

General Counsel

 

If to Employee:

Home address on file with the Company

 

7.6                               This Agreement shall inure to the benefit of, and shall be binding upon, the Company, its successors and assigns, including, without limitation, any entity that may acquire all or substantially all of the Company’s assets and business or into which the Company may be consolidated or merged.  This Agreement may not be assigned by Employee.

 

7.7                               This Agreement may be executed in separate counterparts and may be delivered by facsimile or pdf, each of which shall constitute the original hereof.

 

Signature page follows

 

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IN WITNESS WHEREOF, the parties have set their hands as of the date first above written.

 

	
 
    	
CANTEL   MEDICAL CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew A. Krakauer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMPLOYEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Jorgen B. Hansen
    
	
 
    	
Name:   Jorgen B. Hansen
    

 

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