Document:

Exhibit 10.3

 

	

    	
 
    	
RBC Capital Markets, LLC
   3 World Financial Center
   200 Vesey Street
   New York, New York 10281
   Telephone: (212) 858-7000
    

 

	
DATE:
    	
 
    	
September 4, 2013
    
	
 
    	
 
    	
 
    
	
TO:
    	
 
    	
Cubist   Pharmaceuticals, Inc.
    
	
 
    	
 
    	
65   Hayden Avenue
    
	
 
    	
 
    	
Lexington,   Massachusetts 02421
    
	
ATTENTION:
    	
 
    	
General   Counsel
    
	
TELEPHONE:
    	
 
    	
(781) 860-8660
    
	
FACSIMILE:
    	
 
    	
(781) 240-1076
    
	
 
    	
 
    	
 
    
	
FROM:
    	
 
    	
RBC Capital Markets, LLC
    
	
 
    	
 
    	
as agent for
    
	
 
    	
 
    	
Royal Bank of Canada
    
	
TELEPHONE:
    	
 
    	
(212) 858-7000
    
	
FACSIMILE:
    	
 
    	
(212)   428-3053
    
	
 
    	
 
    	
 
    
	
SUBJECT:
    	
 
    	
Base   Convertible Bond Hedge Transaction
    
	
 
    	
 
    	
 
    
	
REFERENCE   NUMBER(S):
    	
 
    	
CBST-A1-C1_C40
    

 

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 (the “Transaction”) between Royal Bank of Canada (“Dealer”) and Cubist Pharmaceuticals, Inc. (“Counterparty”).  This communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.

 

Disclosure of Agency Relationship

 

 

Dealer has appointed, as its agent, its indirect wholly-owned subsidiary, RBC Capital Markets, LLC (“RBCCM”), for purposes of conducting, on Dealer’s behalf, a business in privately negotiated transactions in options and other derivatives.  You hereby are advised that Dealer, the principal and stated counterparty in such transactions, duly has authorized RBCCM to market, structure, negotiate, document, price, execute and hedge transactions in over-the-counter derivative products.  RBCCM does not act as agent of Counterparty.  For the avoidance of doubt, any performance by Dealer of its obligations hereunder solely to RBCCM shall not relieve Dealer of such obligations.  RBCCM’s performance to Counterparty of Dealer’s obligations hereunder shall relieve Dealer of such obligations to the extent of such performance.  Any performance by Counterparty of its obligations (including notice obligations) through or by means of RBCCM’s agency for Dealer shall constitute good performance of Counterparty’s obligations hereunder to Dealer.

 

1.                                      This Confirmation is subject to, and incorporates, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions” and, together with the 2000 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  In the event of any inconsistency between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern.  Certain defined terms used herein have the meanings assigned to them in the Indenture to be dated as of September 10, 2013 between Counterparty and The Bank of New York Mellon Trust Company, N.A. as trustee (subject to the following paragraph, the “Indenture”) relating to the USD300,000,000 principal amount of 1.125% Convertible Senior Notes due 2018 (the “Convertible Securities”).  In the event of any inconsistency between the terms defined in the Indenture and this Confirmation, this Confirmation shall govern.

 

For the avoidance of doubt, references herein to sections of the Indenture are based on the draft of the Indenture most recently reviewed by the parties at the time of execution of this Confirmation. If any relevant sections of the Indenture are changed, added or renumbered following execution of this Confirmation but prior to the execution of the Indenture, the parties will amend this Confirmation in good faith to preserve the economic intent of the parties based on the draft of the Indenture so reviewed. Subject to the two preceding sentences, the parties acknowledge that references to the Indenture herein are references to the Indenture as in effect on the date of its execution, without giving effect to any amendment or supplement to the Indenture. If the Indenture is amended or supplemented following such execution date, (x) the Calculation Agent shall determine the relevant Delivery Obligation and Settlement Date for any Option 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 amendment or supplement shall be disregarded for all other purposes hereunder (other than for purposes of Section 8(c) below), unless the parties agree otherwise in writing.  Terms in quotation marks that are not otherwise defined in this Confirmation shall have the meanings set forth in the Indenture, unless the context otherwise 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 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 US Dollars (“USD”) as the Termination Currency and (ii) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to Counterparty with a “Threshold Amount” of USD25 million (or USD50 million at such time as Counterparty’s senior unsecured indebtedness is rated BBB+ or greater by Standard & Poor’s Ratings Services (“S&P”) or Baa1 or greater by Moody’s Investors Service, Inc. (“Moody’s”), in each case, with a stable or positive outlook (or if Counterparty’s senior unsecured indebtedness is not rated at such time by S&P or Moody’s, Counterparty’s issuer rating is BBB+ or greater from S&P or Baa1 or greater from Moody’s, in each case, with a stable or positive outlook))).  For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.  The parties acknowledge that the Transaction to which this Confirmation relates is not governed by, and shall not be treated as a transaction under, any other ISDA Master Agreement entered into between the parties from time to time.

 

All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein.  In the event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern, and in the event of any inconsistency between either the Definitions or this Confirmation and the Agreement, the 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.

 

2

 

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

 

	
General   Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Trade   Date:
    	
 
    	
September 4,   2013
    
	
 
    	
 
    	
 
    
	
Effective   Date:
    	
 
    	
The   closing date for the initial issuance of the Convertible Securities.
    
	
 
    	
 
    	
 
    
	
Option   Type:
    	
 
    	
Call
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The   common stock of Counterparty, par value USD0.001 per share (Ticker Symbol:   “CBST”)
    
	
 
    	
 
    	
 
    
	
Number   of Options:
    	
 
    	
The   number of Convertible Securities in denominations of USD1,000 principal   amount issued by Counterparty on the closing date for the initial issuance of   the Convertible Securities (excluding any Optional Securities (as defined in   the Purchase Agreement)). For the avoidance of doubt, the Number of Options   shall be reduced by any Options exercised hereunder.
    
	
 
    	
 
    	
 
    
	
Number   of Shares:
    	
 
    	
As   of any date, the product of the Number of Options, the Applicable Percentage   and the Conversion Rate
    
	
 
    	
 
    	
 
    
	
Applicable   Percentage:
    	
 
    	
35%
    
	
 
    	
 
    	
 
    
	
Conversion   Rate:
    	
 
    	
As   of any date, the “Conversion Rate” (as defined in the Indenture) as of such   date, but without regard to any adjustments to the “Conversion Rate” pursuant   to Section 4.04(a) or 4.05(h) of the Indenture (the “Excluded Adjustment Provisions”).
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
USD19,729,500
    
	
 
    	
 
    	
 
    
	
Premium   Payment Date:
    	
 
    	
The   Effective Date
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The   NASDAQ Global Select Market
    
	
 
    	
 
    	
 
    
	
Related   Exchanges:
    	
 
    	
All   Exchanges
    
	
 
    	
 
    	
 
    
	
Procedure   for Exercise:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exercise   Dates:
    	
 
    	
Each   Conversion Date
    
	
 
    	
 
    	
 
    
	
Conversion   Date:
    	
 
    	
Each   “Conversion Date” occurring during the period from and excluding the Trade   Date to and including the Expiration Date, for Convertible Securities, each   in denominations of USD1,000 principal amount, that are submitted for   conversion on such Conversion Date in accordance with the terms of the   Indenture (such Convertible Securities
    

 

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the   “Relevant Convertible Securities”   for such Conversion Date).
    
	
 
    	
 
    	
 
    
	
Required   Exercise on Conversion Dates:
    	
 
    	
On   each Conversion Date, a number of Options equal to the lesser of (i) the   number of Relevant Convertible Securities for such Conversion Date in   denominations of USD1,000 principal amount and (ii) the Number of   Options on such date shall be automatically exercised.
    
	
 
    	
 
    	
 
    
	
Expiration   Date:
    	
 
    	
The   second “Scheduled Trading Day” immediately preceding the “Maturity Date”.
    
	
 
    	
 
    	
 
    
	
Automatic   Exercise:
    	
 
    	
As   provided under “Required Exercise on Conversion Dates”.
    
	
 
    	
 
    	
 
    
	
Exercise   Notice Deadline:
    	
 
    	
In   respect of any exercise of Options hereunder on any Conversion Date   (x) prior to the Free Convertibility Period (as defined below), the   Exchange Business Day immediately following such Conversion Date or   (y) during the Free Convertibility Period, the second “Scheduled Trading   Day” immediately preceding the “Maturity Date”.
    
	
 
    	
 
    	
 
    
	
Notice   of Exercise:
    	
 
    	
Notwithstanding   anything to the contrary herein or in the Equity Definitions, Dealer shall   have no obligation to make any payment or delivery in respect of any exercise   of Options hereunder unless Counterparty notifies Dealer in writing prior to   4:00 PM, New York City time, on the Exercise Notice Deadline in respect of   such exercise of (i) the number of Options being exercised on the   relevant Exercise Date, (ii) the scheduled settlement date under the   Indenture for the Convertible Securities converted on the Conversion Date   corresponding to such Exercise Date, (iii) whether such Relevant   Convertible Securities will be settled by Counterparty by delivery of cash,   Shares or a combination of cash and Shares and, if such a combination, the   “Specified Dollar Amount” and (iv) the first “Scheduled Trading Day” of   the “Observation Period”; provided that   in the case of any exercise of Options hereunder in connection with the   conversion of any Relevant Convertible Securities on any Conversion Date   occurring during the Free Convertibility Period, the contents of such notice   shall be as set forth in clause (i) above. Counterparty acknowledges its   responsibilities under applicable securities laws, and in particular   Section 9 and Section 10(b) of the Exchange Act (as defined   below) and the rules and regulations thereunder, in respect of any   election of a settlement method with respect to the Convertible Securities.   For the avoidance of doubt, if Counterparty fails to give such notice when   due in respect of any exercise of Options hereunder, 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; provided that notwithstanding the foregoing, in the case   of an exercise of Options hereunder in respect of a conversion of Relevant   Convertible Securities prior to the Free Convertibility Period, such notice   (and the related exercise of Options) shall be effective if given after the   Exercise Notice Deadline, but prior to 4:00 PM New York City time, on the   fifth Exchange Business Day following the Exercise Notice Deadline, in which   event the Calculation Agent shall have the right to adjust the Delivery   Obligation as appropriate to reflect the additional costs (including, but not   limited to, hedging mismatches and market losses) and expenses incurred by   Dealer in connection with its hedging activities (including the unwinding of   any
    

 

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hedge   position) as a result of Dealer not having received such notice on or prior   to the Exercise Notice Deadline.
    
	
 
    	
 
    	
 
    
	
Notice   of Convertible Security Settlement Method:
    	
 
    	
Counterparty   shall notify Dealer in writing no later than March 1, 2018 of the   settlement method and, if applicable, the “Specified Dollar Amount”   applicable to Relevant Convertible Securities with a Conversion Date   occurring on or after March 1, 2018 and ending on and including the   second “Scheduled Trading Day” immediately preceding the “Maturity Date” (the   “Free Convertibility Period”).   If Counterparty fails timely to provide such notice, Counterparty shall be   deemed to have notified Dealer of combination settlement with a “Specified   Dollar Amount” of USD1,000 for all conversions occurring during the Free   Convertibility Period.
    
	
 
    	
 
    	
 
    
	
Settlement   Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Settlement   Date:
    	
 
    	
The   date one Settlement Cycle following the final day of the relevant   “Observation Period”; provided   that Dealer shall not be required to settle prior to the Exchange Business   Day immediately following the date Counterparty provides the Notice of   Delivery Obligation prior to 4:00 PM, New York City time.
    
	
 
    	
 
    	
 
    
	
Delivery   Obligation:
    	
 
    	
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 the   aggregate number of Options exercised on any Exercise Date occurring on a   Conversion Date, Dealer will deliver to Counterparty, on the related   Settlement Date, a number of Shares and/or amount of cash in USD equal to the   product of (i) the Applicable Percentage and (ii) the aggregate   number of Shares, if any, that Counterparty would be obligated to deliver to   the holder(s) of the Relevant Convertible Securities converted on such Conversion   Date pursuant to Section 4.02(a) of the Indenture and/or the   aggregate amount of cash, if any, in excess of USD1,000 per Convertible   Security (in denominations of USD1,000) that Counterparty would be obligated   to deliver to holder(s) pursuant to Section 4.02(a) of the   Indenture (except that such aggregate number of Shares shall be determined   without taking into consideration any rounding pursuant to   Section 4.02(i) of the Indenture and shall be rounded down to the   nearest whole number) and cash in lieu of fractional Shares, if any,   resulting from such rounding, if Counterparty had elected to satisfy its   conversion obligation in respect of such Relevant Convertible Securities by   the Convertible Security Settlement Method, notwithstanding any different   actual election by Counterparty with respect to the settlement of such   Convertible Securities (the “Convertible   Obligation”); provided   that the Delivery Obligation shall be determined excluding any Shares and/or   cash that Counterparty is obligated to deliver to holder(s) of the   Relevant Convertible Securities as a result of any adjustments to the   Conversion Rate pursuant to the Excluded Adjustment Provisions (and, for the   avoidance of doubt, the Delivery Obligation shall not include any interest payment   on the Relevant Convertible Securities that Counterparty is (or would have   been) obligated to deliver to holder(s) of the Relevant Convertible   Securities for such Conversion Date); and provided further   that if such exercise relates to the conversion of Relevant Convertible   Securities in connection with which holders thereof are entitled to receive   additional
    

 

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Shares   and/or cash pursuant to the adjustments to the Conversion Rate set forth in   Section 4.04(a) of the Indenture, then, notwithstanding the   foregoing, the Delivery Obligation shall include the product of (i) the   Applicable Percentage and (ii) such additional Shares and/or cash,   except that the Delivery Obligation shall be capped so that the value of the   Delivery Obligation per Option (with the value of any Shares included in the   Delivery Obligation determined by the Calculation Agent using the “Daily   VWAP” on the last day of the relevant “Observation Period”) does not exceed   the amount as determined by the Calculation Agent that would be payable by   Dealer pursuant to Section 6 of the Agreement if such Conversion Date   were an Early Termination Date resulting from an Additional Termination Event   with respect to which the Transaction (except that, for purposes of   determining such amount (x) the Number of Options shall be deemed to be   equal to the number of Options exercised on such Exercise Date and   (y) such amount payable will be determined as if   Section 4.04(a) of the Indenture were deleted) was the sole   Affected Transaction and Counterparty was the sole Affected Party (determined   without regard to Section 8(a) of this Confirmation).   Notwithstanding the foregoing, and in addition to the cap described in the   further proviso to the preceding sentence, in all events the Delivery   Obligation shall be capped so that the value of the Delivery Obligation does   not exceed the value of the consideration actually delivered to holders of   such Relevant Convertible Securities in respect of the conversion thereof (with   such consideration determined based on the actual settlement method elected   by Counterparty with respect to such Relevant Convertible Securities instead   of the Convertible Security Settlement Method and with the value of any   Shares included in either the Delivery Obligation or such consideration   determined by the Calculation Agent using the opening price of the Shares on   the Exchange on the Settlement Date) minus   USD1,000 per Relevant Convertible Security.
    
	
 
    	
 
    	
 
    
	
Convertible   Security Settlement Method:
    	
 
    	
For   any Relevant Convertible Securities, if Counterparty has notified Dealer in   the related Notice of Exercise (or in the Notice of Convertible Security   Settlement Method, as the case may be) that it has elected to satisfy its   conversion obligation in respect of such Relevant Convertible Securities in   cash or in a combination of cash and Shares in accordance with   Section 4.02(a) of the Indenture (a “Cash Election”) with a “Specified Dollar Amount” of at least   USD1,000, the Convertible Security Settlement Method shall be the settlement   method actually so elected by Counterparty in respect of such Relevant   Convertible Securities; otherwise, the Convertible Security Settlement Method   shall assume Counterparty had made a Cash Election with respect to such   Relevant Convertible Securities with a “Specified Dollar Amount” of USD1,000   per Relevant Convertible Security.
    
	
 
    	
 
    	
 
    
	
Notice   of Delivery Obligation:
    	
 
    	
No   later than the Exchange Business Day immediately following the last day of   the relevant “Observation Period” Counterparty shall give Dealer notice of   the final number of Shares and/or cash comprising the Convertible Obligation;   provided that, with respect to any   Exercise Date occurring during the Free Convertibility Period, Counterparty   may provide Dealer with a single notice of an aggregate number of Shares   and/or amount of cash comprising the Convertible Obligations for all Exercise   Dates occurring in such period (it being understood, for the avoidance of   doubt, that the requirement of Counterparty to deliver such notice shall not   limit Counterparty’s obligations with respect to Notice
    

 

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of   Exercise or Notice of Convertible Security Settlement Method or Dealer’s   obligations with respect to Delivery Obligation, each as set forth above, in   any way).
    
	
 
    	
 
    	
 
    
	
Other   Applicable Provisions:
    	
 
    	
To   the extent Dealer is obligated to deliver Shares hereunder, the provisions of   Sections 9.1(c), 9.8, 9.9, 9.11 (except 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 arising as a   result of the fact that Counterparty is the Issuer of the Shares) and 9.12 of   the Equity Definitions will be applicable as if “Physical Settlement” applied   to the Transaction.
    
	
 
    	
 
    	
 
    
	
Restricted   Certificated Shares:
    	
 
    	
Notwithstanding   anything to the contrary in the Equity Definitions, Dealer may, in whole or   in part, deliver Shares required to be delivered to Counterparty hereunder in   certificated form in lieu of delivery through the Clearance System. With   respect to such certificated Shares, the Representation and Agreement   contained in Section 9.11 of the Equity Definitions shall be modified by   deleting the remainder of the provision after the word “encumbrance” in the   fourth line thereof.
    
	
 
    	
 
    	
 
    
	
Share   Adjustments:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Method   of Adjustment:
    	
 
    	
Notwithstanding   Section 11.2 of the Equity Definitions, upon the occurrence of any event   or condition set forth in Sections 4.05(a), 4.05(b), 4.05(c), 4.05(d),   4.05(e), 4.06 and 4.09 of the Indenture (an “Adjustment   Event”) that results in an adjustment under the Indenture (other   than pursuant to the Excluded Adjustment Provisions), the Calculation Agent   shall make a corresponding adjustment to the terms relevant to the exercise,   settlement or payment of the Transaction. Immediately upon the occurrence of   any Adjustment Event, Counterparty shall notify the Calculation Agent of such   Adjustment Event; and once the adjustments to be made to the terms of the   Indenture and the Convertible Securities in respect of such Adjustment Event   have been determined, Counterparty shall immediately notify the Calculation   Agent in writing of the details of such adjustments.

 

Notwithstanding   anything to the contrary herein, 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 4.06 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”), if the Calculation Agent   disagrees in good faith with such determination, calculation or adjustment,   the Calculation Agent shall make the relevant determination, calculation or   adjustment for purposes of the Transaction and, for the avoidance of doubt,   shall determine any Delivery Obligation and Settlement Date thereafter as if   the Calculation Agent’s determination, calculation or adjustment was

 
    

 

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applicable   under the Indenture. Furthermore, notwithstanding anything to the contrary   herein, if any Adjustment Event occurs during the relevant “Observation   Period” but no adjustment was made to any Convertible Security under the   Indenture because the relevant holder was deemed to be a record owner of the   underlying Shares on the related Conversion Date, then the Calculation Agent   shall make an adjustment, as determined by it, to the terms hereof in order   to account for such Adjustment Event.

 

For   the avoidance of doubt, Dealer shall not have any delivery obligation   hereunder in respect of any “Distributed Property” delivered by Counterparty   pursuant to the fourth sentence of Section 4.05(c) of the Indenture   or any payment obligation in respect of any cash paid by Counterparty   pursuant to the fourth sentence of Section 4.05(d) of the Indenture   (collectively, the “Conversion Rate   Adjustment Fallback Provisions”), and no adjustment shall be made   to the terms of the Transaction on account of any event or condition   described in the Conversion Rate Adjustment Fallback Provisions.
    
	
 
    	
 
    	
 
    
	
Extraordinary   Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Merger   Events:
    	
 
    	
Notwithstanding   Section 12.1(b) of the Equity Definitions, a “Merger Event” means   the occurrence of any event or condition set forth in   Section 4.07(a) of the Indenture.
    
	
 
    	
 
    	
 
    
	
Notice   of Merger Consideration:
    	
 
    	
Upon   the occurrence of a Merger Event that causes the Shares to be converted into   the right to receive more than a single type of consideration (determined   based in part upon any form of stockholder election), Counterparty shall   reasonably promptly (but, in any event prior to the relevant merger date)   notify the Calculation Agent of (i) the weighted average of the types   and amounts of consideration received by the holders of Shares entitled to   receive cash, securities or other property or assets with respect to or in   exchange for such Shares in any Merger Event who affirmatively make such an   election and (ii) the details of the adjustment made under the Indenture   in respect of such Merger Event.
    
	
 
    	
 
    	
 
    
	
Consequences   of Merger Events:
    	
 
    	
Notwithstanding   Sections 12.2 and 12.3 of the Equity Definitions, upon the occurrence of a   Merger Event that results in an adjustment under the Indenture, the   Calculation Agent shall make a corresponding adjustment to the terms relevant   to the exercise, settlement or payment of the Transaction, subject to the   provision under “Method of Adjustment” above relating to Counterparty   Determinations; provided that   such adjustment shall be made without regard to any adjustment to the   Conversion Rate pursuant to the Excluded Adjustment Provisions; and provided further that the Calculation   Agent may limit or alter any such adjustment referenced in this paragraph so   that the fair value of the Transaction to Dealer is not reduced as a result   of such adjustment; and provided further   that if, with respect to a Merger Event, the consideration for the Shares   includes (or, at the option of a holder of Shares, may include) shares of an   entity or person that is not a corporation organized under the laws of the   United States, any State thereof or the District of
    

 

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Columbia,   Cancellation and Payment (Calculation Agent Determination) may apply at   Dealer’s sole discretion.
    
	
 
    	
 
    	
 
    
	
Nationalization, Insolvency   or Delisting:
    	
 
    	
Cancellation   and Payment (Calculation Agent Determination); provided that, in addition to the provisions of   Section 12.6(a)(iii) of the Equity Definitions, it 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.
    
	
 
    	
 
    	
 
    
	
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,   adoption, effectiveness or promulgation of 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 and (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”.
    
	
 
    	
 
    	
 
    
	
Failure   to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Insolvency   Filing:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Disruption:
    	
 
    	
Applicable;   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 two phrases at the end of such Section:

 

                                               “For the   avoidance of doubt, the term “equity price risk” shall be deemed to include,   but shall not be limited to, stock price and volatility risk.  And, for the further avoidance of doubt,   any such transactions or assets referred to in phrases (A) or   (B) above must be available on commercially reasonable pricing terms.”;   and

 

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

 

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Increased   Cost of Hedging:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Party:
    	
 
    	
For   all applicable Potential Adjustment Events and Extraordinary Events, Dealer; provided, however, that all calculations, adjustments,   specifications, choices, and determinations by the Hedging Party shall be   made in good faith and in a commercially reasonable manner.  The parties agree that they will work   reasonably to resolve any disputes.
    
	
 
    	
 
    	
 
    
	
Determining   Party:
    	
 
    	
For   all applicable Extraordinary Events, Dealer; provided,   however, that all calculations, adjustments, specifications, choices, and   determinations by the Determining Party shall be made in good faith and in a   commercially reasonable manner.  The   parties agree that they will work reasonably to resolve any disputes.
    
	
 
    	
 
    	
 
    
	
Acknowledgements:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements   and Acknowledgements
    	
 
    	
 
    
	
Regarding   Hedging Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional   Acknowledgements:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
3.                                      Calculation Agent:
    	
 
    	
Dealer,   which shall make all calculations, adjustments and determinations with   respect to the Transaction that are not expressly required hereunder or under   the Equity Definitions or the Agreement to be made by another party.  All calculations, adjustments,   specifications, choices, and determinations by the Calculation Agent shall be   made in good faith and in a commercially reasonable manner.  The parties agree that they will work   reasonably to resolve any disputes.
    
	
 
    	
 
    	
 
    
	
4.                                      Account Details:
    	
 
    	
Dealer Payment   Instructions:   Royal Bank of Canada
   JP Morgan Chase NY (CHASUS33)
   ABA#: 021-000-021
   Royal Bank of Canada (ROYCUS3X)
   A/C #: 920-1-033363
   A/C 204-1499
   Reference: Cubist Pharmaceuticals, Inc.

 

Counterparty Payment Instructions:  To be   provided by Counterparty
    

 

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5.                                      Offices:
    	
 
    	
The Office of Dealer for the Transaction is: New York

 

Royal Bank of Canada
   c/o RBC Capital Markets, LLC
   3 World Financial Center

200 Vesey Street

New York, New York 10281

Attention:                                         Structured   Derivatives Documentation

Telephone:                                   (212) 858-7000

Facsimile:                                         (212) 428-3053

 

The Office of Counterparty for the Transaction is: Not Applicable
    
	
 
    	
 
    	
 
    
	
6.                                      Notices:
    	
 
    	
For purposes of this Confirmation:

 

Address for notices or communications to Counterparty:

 

To:                                                                             Cubist   Pharmaceuticals, Inc.

                                                                                                65 Hayden   Avenue

                                                                                                Lexington,   Massachusetts 02421

Attn:                                                                    General   Counsel

Telephone:                                   (781)   860-8660

Facsimile:                                         (781)   240-1076

 

Any   notice or other communication required or permitted to be given to Dealer   (for matters other than operational matters) with respect to this Confirmation   shall be delivered in person or given by facsimile transmission to Dealer at   the following address:

 

To:                                                                             Royal Bank of Canada

                                                                                                c/o RBC Capital   Markets, LLC

                                                                                                3 World Financial   Center

                                                                                                200 Vesey Street

                                                                                                New York, New York   10281

Attn:                                                                    Structured Derivatives   Documentation

Telephone:                                   (212) 858-7000

Facsimile:                                         (212)   428-3053
   Email:                                                            SEDDOC@rbccm.com

 

Any   notice or other communication concerning operational matters should be sent   by facsimile to RBC Capital Markets, LLC at the above address; Attention:   Structured Derivatives Documentation; Phone: (212) 858-7000; Facsimile: (212) 858-7033; Email:   geda@rbccm.com.
    

 

7.                                      Representations, Warranties and Agreements:

 

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

 

(i)                                     On the Trade Date, and as of the date of any election by Counterparty of the Share Termination Alternative under (and as defined in) Section 8(a) below, (A) none of Counterparty and its officers and directors is aware of any material nonpublic information regarding Counterparty or the Shares and (B) all reports and other documents filed by Counterparty with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.

 

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(ii)                                  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.

 

(iii)                               Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board of directors authorizing the Transaction and such other certificate or certificates as Dealer shall reasonably request.

 

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

 

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

 

(vi)                              On each of the Trade Date and the Premium Payment Date, Counterparty is not, or will not be, “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase 5,626,075 Shares in compliance with the corporate laws of the jurisdiction of its incorporation.

 

(vii)                           To Counterparty’s knowledge, no state or local (including non-U.S. jurisdictions) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) solely and not due to any other Dealer activity as a result of Dealer or its affiliates having the power to vote, owning or holding (however defined) Shares.

 

(viii)                        The representations and warranties of Counterparty set forth in Section 3 of the Agreement and Section 1 of the Purchase Agreement dated as of September 4, 2013 among Counterparty and Morgan Stanley & Co. Incorporated, Barclays Capital Inc. and RBC Capital Markets Corporation, as representatives of the Initial Purchasers party thereto (the “Purchase Agreement”), are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein.

 

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

 

(x)                                 (A) Counterparty 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) Counterparty is not relying on any communication (written or oral) of Dealer or any of its 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 Dealer or any of its affiliates shall be deemed to be an assurance or guarantee as to the expected results of the Transaction.

 

(xi)                              Counterparty (i) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (ii) 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 (iii) has total assets of at least $50 million as of the date hereof.

 

(b)                                 Each of Dealer and Counterparty agrees and represents that it is an “eligible contract participant” as defined in the U.S. Commodity Exchange Act, as amended.

 

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(c)                                  Counterparty acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof.  Accordingly, Counterparty represents and warrants to Dealer that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own account and without a view to the distribution or resale thereof, (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws and (v) it is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities.

 

(d)                                 Counterparty agrees and acknowledges that Dealer is a “financial institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of Title 11 of the Bankruptcy Code.  The parties hereto further agree and acknowledge that it is the intent of the parties (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,” as such term is defined in Section 741(8) 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,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e), 546(g), 548(d)(2), 555 and 560 of the Bankruptcy Code.

 

(e)                                  It is the intent of the parties that, in respect of Counterparty, (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).

 

8.                                      Miscellaneous:

 

(a)                                 Alternative Calculations and Dealer Payment on Early Termination and on Certain Extraordinary Events.  If Dealer shall owe Counterparty any amount pursuant to “Consequences of Merger Events” above or Sections 12.6, 12.7 or 12.9 of the Equity Definitions or pursuant to Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Counterparty shall have the right, in its sole discretion, to require Dealer to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M. New York City time on the relevant merger date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable (“Notice of Share Termination”); provided that if Counterparty does not elect to require Dealer to satisfy its Payment Obligation by the Share Termination Alternative, Dealer shall have the right, in its sole discretion, to elect to satisfy its Payment Obligation by the Share Termination Alternative, notwithstanding Counterparty’s failure to elect or election to the contrary; and provided further that Counterparty shall not have the right to so elect (but, for the avoidance of doubt, Dealer shall have the right to so elect) in the event of (i) an Insolvency, a Nationalization or a Merger Event, in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash or (ii) an Event of Default, a Termination Event or an Extraordinary Event, in each case, which resulted from an event or events within Counterparty’s control.  Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the relevant merger date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable:

 

Share Termination Alternative:                       Applicable and means that Dealer shall deliver to Counterparty the Share Termination Delivery Property on the date on which the Payment Obligation would otherwise be due pursuant to “Consequences of Merger Events” above, Section 12.7 or 12.9 of the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable, or such later date or dates as the Calculation Agent may reasonably determine (the “Share Termination Payment Date”), in satisfaction of the Payment Obligation.

 

Share Termination Delivery

 

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Property:                                                                                                                                             A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price.  The Calculation Agent shall adjust the Share Termination Delivery Property by replacing any fractional portion of the aggregate amount of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price.

 

Share Termination Unit Price:                               The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property, as determined by the Calculation Agent in its discretion by commercially reasonable means and notified by the Calculation Agent to Dealer at the time of notification of the Payment Obligation.

 

Share Termination Delivery Unit:            In the case of a Termination Event, Event of Default, Delisting or Additional Disruption Event, one Share or, in the case of an Insolvency, Nationalization or Merger Event, one Share or a unit consisting of the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization or Merger Event, as applicable.  If such Insolvency, Nationalization or Merger Event involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash.

 

Failure to Deliver:                                                                                               Applicable

 

Other applicable provisions:                                        If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.10, 9.11 (except 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 arising as a result of the fact that Counterparty is the issuer of the Shares or any portion of the Share Termination Delivery Units) and 9.12 of the Equity Definitions will be applicable as if “Physical Settlement” applied to the Transaction, except that all references to “Shares” shall be read as references to “Share Termination Delivery Units.”

 

(b)                                 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 of the type described in Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Counterparty owes to Dealer an amount pursuant to Section 6 of the Agreement, or (ii) Counterparty owes to Dealer an amount pursuant to Article 12 of the Equity Definitions (including, for the avoidance of doubt, any amount payable in connection with an Extraordinary Event), such amount shall be deemed to be zero.

 

(c)                                  Additional Termination Events.  The occurrence of (i) an “Event of Default” with respect to Counterparty under the terms of the Convertible Securities as set forth in Section 7.01 of the Indenture or (ii) an Amendment Event shall be an Additional Termination Event with respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole Affected Party and Dealer shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement.  For the avoidance of doubt, the relevant Early Termination Amount in respect of an Amendment Event shall be calculated without giving effect to the related amendment, modification, supplement or waiver.

 

“Amendment Event” means that Counterparty, without the prior consent of Dealer, amends, modifies, supplements, waives or obtains a waiver in respect of (i) any term of the Indenture or the Convertible Securities governing the principal amount, coupon, maturity, repurchase obligation of Counterparty or redemption right of Counterparty (if any) or any term relating to conversion of the Convertible Securities (including changes to the conversion rate, conversion rate adjustment provisions, conversion settlement dates, conversion conditions or settlement upon conversion), in each case regardless of whether consent of the holders of Convertible Securities is required, or (ii) any term that would require consent of the holders of not less than 100% of the principal amount of the Convertible Securities to amend.

 

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(d)                                 Disposition of Hedge Shares.  Counterparty hereby agrees that if, in the good faith reasonable judgment of Dealer, any Shares (the “Hedge Shares”) acquired by Dealer for the purpose of hedging its obligations pursuant to the Transaction cannot be freely 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 an agreement, in form and substance satisfactory to Dealer, substantially in the form of an underwriting agreement for a registered offering, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities; provided, however, that if Dealer, in its sole reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this Section 8(d) shall apply at the election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance 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 agreements, 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 reasonable judgment, to compensate Dealer for any discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the “Daily VWAP” on such Exchange Business Days, and in the amounts, requested by Dealer.

 

(e)                                  Repurchase and Conversion Rate Adjustment Notices.  Counterparty shall, at least 10 Scheduled Trading Days prior to (i) effecting any repurchase of Shares or (ii) consummating or otherwise executing or engaging in any transaction or event (a “Conversion Rate Adjustment Event”) that would lead to an increase in the Conversion Rate (as such term is defined in the Indenture), in each case give Dealer a written notice of such repurchase or Conversion Rate Adjustment Event (a “Repurchase Notice”) if, following such repurchase or Conversion Rate Adjustment Event, the Notice Percentage as determined on the date of such Repurchase Notice will be greater by 0.5% than the Notice Percentage included in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof (calculated as if any Other Call Option Transaction had been entered into as of such date)).  The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of which is sum of (x) the Number of Shares and (y) the number of Shares underlying any other call option transaction (an “Other Call Option Transaction”) between Dealer as seller and Counterparty as buyer, and the denominator of which is the number of Shares outstanding on such day.  In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the day and in the manner specified in this Section 8(e), then Counterparty agrees to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party may become subject under applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure.  If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Counterparty will reimburse any Indemnified Party for all expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with the investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Counterparty.  This indemnity shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Dealer.

 

(f)                                   Transfer or Assignment.  Either party may transfer any of its rights or obligations under the Transaction with the prior written consent of the non-transferring party, such consent not to be unreasonably withheld or delayed. For the avoidance of doubt, Dealer may condition its consent on any of the following, without

 

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limitation: (i) the receipt by Dealer of opinions and documents reasonably satisfactory to Dealer in connection with such assignment, (ii) such assignment 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) Counterparty continuing to be obligated to provide notices hereunder relating to the Convertible Securities and continuing to be obligated with respect to “Disposition of Hedge Shares” and “Repurchase and Conversion Rate Adjustment Notices” above.  In addition, Dealer may transfer or assign without any consent of Counterparty its rights and obligations hereunder and under the Agreement, in whole or in part, to any of its affiliates; provided that (i) such affiliate’s credit rating from S&P or Moody’s is the same as or higher than Dealer’s credit rating as of the date of this Confirmation, or Dealer provides a guarantee of such transferee’s obligations by Dealer or an affiliate of Dealer with such a credit rating, (ii) in Counterparty’s reasonable determination, Counterparty will not be required, as a result of such transfer or assignment, to pay the transferee or assignee 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 to Dealer in the absence of such transfer or assignment and (iii) the Transaction is at the time of such transfer the legal, valid and binding obligation of such affiliate.  In the event of any such transfer or assignment, for the avoidance of doubt, Sections 3(e), 3(f), 4(a)(i) and 4(a)(iii) of the Agreement shall continue to apply, and the identity of the transferee or assignee shall be entered on the books and records maintained by each party or its respective agents.  At any time at which any Excess Ownership Position exists, if Dealer, in its discretion, is unable to effect a transfer or assignment to a third party in accordance with the requirements set forth above after using its commercially reasonable efforts on pricing terms and within a time period reasonably acceptable to Dealer such that an Excess Ownership Position no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership Position no longer exists. In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section 8(a) of this Confirmation as if (i) an Early Termination Date had been designated in respect of an Additional Termination Event under a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty were the sole Affected Party with respect to such Additional Termination Event and (iii) the Terminated Portion of the Transaction shall be the only Terminated Transaction. “Excess Ownership Position” means any of the following: (i) the Equity Percentage exceeds 9.0%, (ii) Dealer or any “affiliate” or “associate” of Dealer would own in excess of 13% of the outstanding Shares for purposes of Section 203 of the Delaware General Corporation Law or (iii) 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 laws, regulations or regulatory orders applicable to ownership of Shares (“Applicable Laws”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval by a state or federal regulator) of a Dealer Person under Applicable Laws and with respect to which such requirements have not been met or the relevant approval has not been received or that would give rise to any consequences under the constitutive documents of Counterparty or any contract or agreement to which Counterparty is a party, as reasonably determined by Dealer, in each case minus (y) 1% of the number of Shares outstanding on the date of determination.  The “Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates or any other person subject to aggregation with Dealer, for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act, or of any “group” (within the meaning of Section 13) of which Dealer is or may be deemed to be a part (Dealer and any such affiliates, persons and groups, collectively, “Dealer Group”), beneficially owns (within the meaning of Section 13 of the Exchange Act), without duplication, on such day and (B) the denominator of which is the number of Shares outstanding on such day.

 

(g)                                  Staggered Settlement.  Dealer may, by notice to Counterparty on or prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a “Staggered Settlement Date”) 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

 

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related “Observation Period” or delivery times and how it will allocate the Shares it is required to deliver under “Delivery Obligation” (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.

 

(h)                                 Right to Extend.  Dealer may postpone any Exercise Date or Settlement Date or any other date of valuation or delivery by Dealer with respect to some or all of the relevant Options (in which event the Calculation Agent shall make appropriate adjustments to the Delivery Obligation) if Dealer determines, in its reasonable discretion, that such extension is reasonably necessary or appropriate to preserve Dealer’s 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.

 

(i)                                     Netting and Set-off.  In addition to and without limiting any rights of set-off that a party hereto may have as a matter of law, pursuant to contract or otherwise, upon the occurrence of an Early Termination Date, Dealer (and only Dealer) shall have the right to set off any obligation that it may have to Counterparty under this Confirmation, including without limitation any obligation to make any payment of cash or delivery of Shares to Counterparty, against any obligation Counterparty may have to Dealer under any other agreement between Dealer and Counterparty relating to Shares (each such contract or agreement, a “Separate Agreement”), including without limitation any obligation to make a payment of cash or a delivery of Shares or any other property or securities. For this purpose, Dealer shall be entitled to convert any obligation (or the relevant portion of such obligation) denominated in one currency into another currency at the rate of exchange at which it would be able to purchase the relevant amount of such currency, and to convert any obligation to deliver any Shares or other non-cash property into an obligation to deliver cash in an amount calculated by reference to the market value of such Shares or other property as of the Early Termination Date, as determined by the Calculation Agent; provided that in the case of a set-off of any obligation to release or deliver assets against any right to receive fungible assets, such obligation and right shall be set off in kind.  If an obligation is unascertained at the time of any such set-off, the Calculation Agent may in good faith estimate the amount or value of such obligation, in which case set-off will be effected in respect of that estimate, and the relevant party shall account to the other party at the time such obligation or right is ascertained. For the avoidance of doubt and notwithstanding anything to the contrary provided in this Section 8(i), in the event of bankruptcy or liquidation of either Counterparty or Dealer 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.

 

(j)                                    Status of Claims in Bankruptcy.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders or Counterparty in the event of Counterparty’s bankruptcy.  For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during Counterparty’s bankruptcy.

 

(k)                                 No Collateral.  Notwithstanding any provision of this Confirmation, the Agreement, the 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.

 

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

 

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

 

(n)                                 Agreements and Acknowledgments 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

 

17

 

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.

 

(o)                                 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)).

 

(p)                                 Certain Tax Considerations.

 

(i)                                     Dealer makes the following representations to Counterparty: (A) it is a “foreign person” (as that term is used in Section 1.6041-4(a)(4) of the U.S. Treasury Regulations) for U.S. federal income tax purposes, and (B) each payment received or to be received by it in connection with this Confirmation will be effectively connected with its conduct of a trade or business in the United States.  Dealer agrees to complete, accurately and in a manner reasonably satisfactory to Counterparty, to execute and to deliver to Counterparty a valid U.S. Internal Revenue Service Form W-8ECI (or any successor form) and any required attachments thereto (x) upon execution of this Confirmation and thereafter prior to the date on which such form becomes invalid, (y) promptly upon reasonable demand by Counterparty and (z) promptly upon learning that any Form W-8ECI (or any successor thereto) previously provided by Dealer has become obsolete, invalid or incorrect.

 

(ii)                                  Counterparty makes the following representation to Dealer: it is a corporation established under the laws of the State of Delaware and is a “United States person” (as that term is defined in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended).

 

(iii)                               Counterparty agrees to complete, accurately and in a manner reasonably satisfactory to Dealer, to execute and to deliver to Dealer a valid U.S. Internal Revenue Service Form W-9 (or any successor form) and any required attachments thereto (A) upon execution of this Confirmation and thereafter prior to the date on which such form becomes invalid, (B) promptly upon reasonable demand by Dealer and (C) promptly upon learning that any Form W-9 (or any successor thereto) previously provided by Counterparty has become obsolete, invalid or incorrect.

 

(q)                                 Early Unwind.  In the event the sale by Counterparty of the Firm Securities (as defined in the Purchase Agreement) is not consummated with the Initial Purchasers pursuant to the Purchase Agreement for any reason by the close of business in New York on September 10, 2013 (or such later date as agreed upon by the parties, which in no event shall be later than the fifth business day thereafter) (September 10, 2013 or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (x) the Transaction and all of the respective rights and obligations of Dealer and Counterparty thereunder shall be cancelled and terminated and (y) Counterparty shall assume, or reimburse the cost of, derivatives and other hedging activities entered into by Dealer or one or more of its affiliates in connection with hedging the Transaction and the unwind of such hedging activities, and purchase any Shares purchased by Dealer or one or more of its affiliates in connection with hedging the Transaction at the cost at which Dealer or such affiliates purchased such Shares. Following such termination, cancellation and payment, subject to the preceding sentence, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of either party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date.

 

18

 

(r)                                    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.

 

(s)                                   Waiver of Jury Trial.   EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

 

(t)                                    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.

 

19

 

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 to Dealer a facsimile of the fully-executed Confirmation to Dealer at (212) 428-3053.  Originals shall be provided for your execution upon your request.

 

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,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ROYAL   BANK OF CANADA
    	
 
    
	
by   its agent
    	
 
    
	
RBC   Capital Markets, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Alex Rabaev
    	
 
    	
 
    
	
 
    	
Name:
    	
Alex   Rabaev
    	
 
    
	
 
    	
Title:
    	
Associate   Director
    	
 
    
					

 

 

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

 

 

	
CUBIST PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Michael J. Tomsicek
    	
 
    	
 
    
	
 
    	
Name:
    	
Michael   J. Tomsicek
    	
 
    
	
 
    	
Title:
    	
Senior   Vice President and
    	
 
    
	
 
    	
 
    	
Chief   Financial OfficerExhibit 10.4

 

Morgan Stanley & Co. International plc
 c/o Morgan Stanley & Co. LLC
 1585 Broadway, 5th Floor
 New York, NY 10036

 

	
DATE:
    	
September 4, 2013
    
	
 
    	
 
    
	
TO:
    	
Cubist   Pharmaceuticals, Inc.
    
	
 
    	
65   Hayden Avenue
    
	
 
    	
Lexington,   Massachusetts 02421
    
	
ATTENTION:
    	
General   Counsel
    
	
TELEPHONE:
    	
(781) 860-8660
    
	
FACSIMILE:
    	
(781)   240-1076
    
	
 
    	
 
    
	
FROM:
    	
Morgan Stanley & Co. International plc
    
	
 
    	
c/o Morgan Stanley & Co. LLC
    
	
 
    	
1585 Broadway, 5th Floor
    
	
 
    	
New York, NY 10036
    
	
 
    	
 
    
	
SUBJECT:
    	
Base Issuer Warrant Transaction
    

 

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 (the “Transaction”) between Morgan Stanley & Co. International plc (“Dealer”) and Cubist Pharmaceuticals, Inc. (“Issuer”).  This communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.

 

Disclosure of Agency Relationship

 

Morgan Stanley & Co. LLC (“MS&CO”) is acting as agent for Dealer and is acting as agent for Issuer as and to the extent required by Rule 15a-6 under the Exchange Act (as defined below), but MS&CO does not guarantee the performance of either party.  Additionally, (i) neither Dealer nor Issuer shall contact the other with respect to any matter relating to the Transaction without the direct involvement of MS&CO; (ii) MS&CO, Dealer and Issuer each hereby acknowledges that any transactions by Dealer or MS&CO with respect to the Transaction will be undertaken by Dealer as principal for its own account; (iii) all of the actions to be taken by Dealer and MS&CO in connection with the Transaction shall be taken by Dealer or MS&CO independently and without any advance or subsequent consultation with Issuer, except as otherwise stated herein; and (iv) MS&CO is hereby authorized to act as agent for Issuer only to the extent required to satisfy the requirements of Rule 15a-6 under the Exchange Act in respect of the Transaction.  For the avoidance of doubt, any performance by Dealer of its obligations hereunder solely to MS&CO shall not relieve Dealer of such obligations.  MS&CO’s performance to Issuer of Dealer’s obligations hereunder shall relieve Dealer of such obligations to the extent of such performance.  Any performance by Issuer of its obligations (including notice obligations) through or by means of MS&CO’s agency for Dealer shall constitute good performance of Issuer’s obligations hereunder to Dealer.

 

1.                                      This Confirmation is subject to, and incorporates, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2000 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  In the event of any inconsistency between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern.  For purposes of the Equity Definitions, each reference herein to a Warrant shall be deemed to be a reference to a Call Option or an Option, as context requires.

 

This Confirmation evidences a complete and binding agreement between Dealer and Issuer as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement as if Dealer and Issuer had executed an agreement in such form (without any

 

 

Schedule except for (i) the election of US Dollars (“USD”) as the Termination Currency and (ii) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to Issuer with a “Threshold Amount” of USD25 million (or USD50 million at such time as Issuer’s senior unsecured indebtedness is rated BBB+ or greater by Standard & Poor’s Ratings Services (“S&P”) or Baa1 or greater by Moody’s Investors Service, Inc. (“Moody’s”), in each case, with a stable or positive outlook (or if Issuer’s senior unsecured indebtedness is not rated at such time by S&P or Moody’s, Issuer’s issuer rating is BBB+ or greater from S&P or Baa1 or greater from Moody’s, in each case, with a stable or positive outlook))). For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.  The parties acknowledge that the Transaction to which this Confirmation relates is not governed by, and shall not be treated as a transaction under, any other ISDA Master Agreement entered into between the parties from time to time.

 

All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein.  In the event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this Confirmation shall govern, and in the event of any inconsistency between either the Definitions or this Confirmation and the Agreement, the 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 Definitions or the Agreement, shall not be construed to exclude or limit the application of any other provision of this Confirmation, the Definitions or the Agreement.

 

2.                                      The Transaction is a Warrant Transaction, which shall be considered a Share Option Transaction for purposes of the Equity Definitions.  The terms of the particular Transaction to which this Confirmation relates are as follows:

 

	
General:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Trade   Date:
    	
 
    	
September   4, 2013
    
	
 
    	
 
    	
 
    
	
Effective   Date:
    	
 
    	
September   10, 2013, or such other date as agreed between the parties, subject to   Section 8(a) below
    
	
 
    	
 
    	
 
    
	
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:
    	
 
    	
Issuer
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The   common stock of Issuer, par value USD0.001 per share (Ticker Symbol: “CBST”).
    
	
 
    	
 
    	
 
    
	
Number   of Warrants:
    	
 
    	
For   each Component, as provided in Annex A to this Confirmation. For the   avoidance of doubt, the Number of Warrants shall be reduced by any Warrants   exercised or deemed exercised hereunder. In no event will the Number of   Warrants be less than zero.
    

 

2

 

	
Strike   Price:
    	
 
    	
USD96.43
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   anything to the contrary in the Agreement, this Confirmation or the   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 USD62.16, except for any adjustment in connection with   stock splits or similar changes to Issuer’s capitalization.
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
USD12,715,500
    
	
 
    	
 
    	
 
    
	
Premium   Payment Date:
    	
 
    	
The   Effective Date
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
The   NASDAQ Global Select Market
    
	
 
    	
 
    	
 
    
	
Related   Exchanges:
    	
 
    	
All   Exchanges
    
	
 
    	
 
    	
 
    
	
Procedures   for Exercise:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
In respect of any Component:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Expiration   Date:
    	
 
    	
As   provided in Annex A 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, Dealer may elect in its discretion that the   Final Disruption Date shall 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 Definitions, the Relevant Price for such Expiration Date   shall be the prevailing market value per Share determined by the Calculation   Agent in a commercially reasonable manner. “Final Disruption Date” means the eighth Scheduled Trading   Day following the Expiration Date for the Component with the latest   Expiration Date, determined without regard to the provisos to the preceding   sentence. 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   Date for the remaining Warrants for such Component, and (ii) the VWAP   Price for such Disrupted Day shall be
    

 

3

 

	
 
    	
 
    	
determined   by the Calculation Agent 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. Any   Scheduled Trading Day on which, as of the date hereof, the Exchange is   scheduled to close prior to its normal close of trading shall be deemed not   to be a Scheduled Trading Day; if a closure of the Exchange prior to its   normal close of trading on any Scheduled Trading Day is scheduled following   the date hereof, then such Scheduled Trading Day shall be deemed to be a   Disrupted Day in full. Section 6.6 of the Equity Definitions shall not apply   to any Valuation Date occurring on an Expiration Date.
    
	
 
    	
 
    	
 
    
	
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 unless Dealer   notifies Seller (by telephone or in writing) prior to the Expiration Time on   the Expiration Date that it does not wish Automatic Exercise to occur, in   which case Automatic Exercise will not apply.
    
	
 
    	
 
    	
 
    
	
Market   Disruption Event:
    	
 
    	
Section   6.3(a) of the Equity Definitions is hereby amended (A) 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 (B) by replacing the words “or (iii)   an Early Closure.” therein with “(iii) an Early Closure, or (iv) a Regulatory   Disruption.”
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Section   6.3(d) of the Equity Definitions is hereby amended by deleting the remainder   of the provision following the term “Scheduled Closing Time” in the fourth   line thereof.
    
	
 
    	
 
    	
 
    
	
Regulatory   Disruption:
    	
 
    	
Any   event that Dealer, in its discretion, determines makes it appropriate with   regard to any legal, regulatory or self-regulatory requirements or related   policies and procedures, for Dealer to refrain from or decrease any market   activity in connection with the Transaction. Dealer shall notify Issuer as   soon as reasonably practicable that a Regulatory Disruption has occurred and   the Expiration Dates affected by it.
    
	
 
    	
 
    	
 
    
	
Settlement   Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
In respect of any Component:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Settlement   Currency:
    	
 
    	
USD
    
	
 
    	
 
    	
 
    
	
Net   Share Settlement:
    	
 
    	
In   lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity   Definitions, for each Component, Issuer shall deliver to Dealer on the   relevant Settlement Date a number of Shares equal to the Number of Shares to   be Delivered for such Component to the account specified by Dealer and cash   in lieu of any fractional Share valued at the Relevant Price on the Valuation   Date corresponding to such Settlement Date, subject to the provisions set   forth under “Registration/Private Placement Procedures” below.
    

 

4

 

	
Number   of Shares to be Delivered:
    	
 
    	
In   respect of any Exercise Date, subject to the last sentence of Section 9.5 of   the Equity Definitions, the product of (i) the number of Warrants exercised   or deemed exercised on such Exercise Date, (ii) the Warrant Entitlement and   (iii) (A) the excess, if any, of the VWAP Price on the Valuation Date occurring   on such Exercise Date over the Strike Price divided by   (B) such VWAP Price.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   Number of Shares to be Delivered shall be delivered by Issuer to Dealer no   later than 5:00 P.M. (local time in New York City) on the relevant Settlement   Date.
    
	
 
    	
 
    	
 
    
	
VWAP   Price:
    	
 
    	
For   any Valuation Date, the Rule 10b-18 dollar volume weighted average price per   Share for such Valuation Date based on transactions executed during such   Valuation Date, as reported on Bloomberg Page “CBST <Equity> AQR” (or   any successor thereto) or, if such price is not so reported or is manifestly   incorrect, as determined by the Calculation Agent using a volume weighted   method.
    
	
 
    	
 
    	
 
    
	
Other   Applicable Provisions:
    	
 
    	
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 arising as a result of the fact   that Seller is the Issuer of the Shares) and 9.12 of the Equity Definitions   will be applicable as if “Physical Settlement” applied to the Transaction.
    
	
 
    	
 
    	
 
    
	
Dividends:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
In respect of any Component:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Method   of Adjustment:
    	
 
    	
Calculation   Agent Adjustment
    
	
 
    	
 
    	
 
    
	
Extraordinary   Dividend:
    	
 
    	
Any   Dividend that has an ex-dividend date occurring on or after the Trade Date   and on or prior to the date on which Issuer satisfies all of its delivery   obligations hereunder.
    
	
 
    	
 
    	
 
    
	
Dividend:
    	
 
    	
Any   dividend or distribution on the Shares (other than any dividend or   distribution of the type described in Sections 11.2(e)(i), 11.2(e)(ii)(A) or   11.2(e)(ii)(B) of the Equity Definitions).
    
	
 
    	
 
    	
 
    
	
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   (including the word “and” following such clause (i)) 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
    

 

5

 

	
 
    	
 
    	
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.”
    
	
 
    	
 
    	
 
    
	
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 Issuer 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, Dealer, the Issuer of the Affected Shares and the entity that   will be the Issuer of the New 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 reasonably   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 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 policies and   procedures applicable to Dealer, 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.
    
	
 
    	
 
    	
 
    
	
Announcement   Event:
    	
 
    	
With   respect to any Component, if an Announcement Event occurs, the Calculation   Agent will determine 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), such economic effect   is material and Dealer so elects in its sole discretion, the Calculation   Agent will (x) adjust the terms of such Component to reflect such economic   effect and (y) determine the effective date of such adjustment. “Announcement Event” shall mean the occurrence of an Announcement   Date in respect of a Merger Event (for the avoidance of doubt, determined   without regard to the language in the definition of “Merger Event” following   the definition of “Reverse Merger” therein) or Tender Offer, notwithstanding   the fact that such Merger Date or Tender Offer Date may not, or may not be   anticipated to, occur on or prior to the Valuation Date for the related   Component. The definition of “Announcement Date”   in Section 12.1(l) of the Equity Definitions shall be amended by (a) replacing   the word “leads” in the third line thereof and in the fifth line thereof with   the words “is reasonably likely to lead (as determined by the Calculation   Agent)”, (b) deleting the
    

 

6

 

	
 
    	
 
    	
word   “firm” in the second and fourth lines thereof and (c) inserting the words “,   and any publicly announced change or amendment to such an announcement   (including the announcement of an abandonment of such intention)” at the end   of clauses (i) and (ii) thereof.
    
	
 
    	
 
    	
 
    
	
Consequences of Merger Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(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
    
	
 
    	
 
    	
 
    
	
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
    
	
 
    	
 
    	
 
    
	
Composition   of Combined Consideration:
    	
 
    	
Notwithstanding   anything to the contrary in the Equity Definitions, if the composition of   Combined Consideration in respect of any Share-for-Combined Merger Event or   Tender Offer could be determined by a holder of Shares, Dealer shall   determine the composition of such Combined Consideration in its sole discretion.
    
	
 
    	
 
    	
 
    
	
Nationalization,   Insolvency or Delisting:
    	
 
    	
Cancellation   and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii)   of the Equity Definitions, it 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.
    
	
 
    	
 
    	
 
    
	
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, adoption,   effectiveness or promulgation of regulations authorized or mandated by   existing statute)” at the end of clause (A) thereof, (ii) by the replacement   of the
    

 

7

 

	
 
    	
 
    	
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 and (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”.
    
	
 
    	
 
    	
 
    
	
Insolvency   Filing:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Loss   of Stock Borrow:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Maximum   Stock Loan Rate:
    	
 
    	
100   basis points per annum
    
	
 
    	
 
    	
 
    
	
Increased   Cost of Stock Borrow:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Initial   Stock Loan Rate:
    	
 
    	
25   basis points per annum
    
	
 
    	
 
    	
 
    
	
Increased   Cost of Hedging:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Disruption:
    	
 
    	
Applicable;   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 two phrases   at the end of such Section:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
                                                “For the   avoidance of doubt, the term “equity price risk” shall be deemed to include,   but shall not be limited to, stock price and volatility risk. And, for the   further avoidance of doubt, any such transactions or assets referred to in   phrases (A) or (B) above must be available on commercially reasonable pricing   terms.”; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)                                  Section 12.9(b)(iii)   of the Equity Definitions is hereby amended by inserting in the third line   thereof, after the words “to terminate the Transaction”, the words “or a   portion of the Transaction affected by such Hedging Disruption”.
    
	
 
    	
 
    	
 
    
	
Hedging   Party:
    	
 
    	
Dealer   for all applicable Potential Adjustment Events and Extraordinary Events; provided, however, that all calculations, adjustments,   specifications, choices, and determinations by the Hedging Party shall be   made in good faith and in a commercially reasonable manner. The parties agree   that they will work reasonably to resolve any disputes.
    
	
 
    	
 
    	
 
    
	
Determining   Party:
    	
 
    	
Dealer   for all applicable Extraordinary Events; provided,   however, that all calculations, adjustments, specifications, choices, and   determinations by the Determining Party shall be made in good faith
    

 

8

 

	
 
    	
 
    	
and   in a commercially reasonable manner. The parties agree that they will work   reasonably to resolve any disputes.
    
	
 
    	
 
    	
 
    
	
Acknowledgements:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements   and Acknowledgements
    	
 
    	
 
    
	
Regarding   Hedging Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional   Acknowledgements:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
3.                                      Calculation Agent:
    	
 
    	
Dealer, which shall make all calculations,   adjustments and determinations with respect to the Transaction that are not   expressly required hereunder or under the Definitions or the Agreement to be   made by another party. All calculations, adjustments, specifications,   choices, and determinations by the Calculation Agent shall be made in good   faith and in a commercially reasonable manner. The parties agree that they   will work reasonably to resolve any disputes.
    
	
 
    	
 
    	
 
    
	
4.                                      Account Details:
    	
 
    	
Dealer Payment Instructions:
    
	
 
    	
 
    	
Bank: Citibank, N.A.
    
	
 
    	
 
    	
SWIFT: CITIUS33
    
	
 
    	
 
    	
Bank Routing: 021-000-089
    
	
 
    	
 
    	
Account Name: Morgan Stanley and Co.
    
	
 
    	
 
    	
Account No.: 30632076
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Issuer   Payment Instructions:
    
	
 
    	
 
    	
To   be provided by Issuer
    
	
 
    	
 
    	
 
    
	
5.                                      Offices:
    	
 
    	
The Office of Dealer for the Transaction is: New York
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Morgan Stanley &   Co. International plc
    
	
 
    	
 
    	
c/o Morgan Stanley   & Co. LLC
    
	
 
    	
 
    	
1585 Broadway, 5th Floor
    
	
 
    	
 
    	
New York, NY 10036
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Office of Issuer for the Transaction is: Not Applicable
    
	
 
    	
 
    	
 
    
	
6.                                      Notices:
    	
 
    	
For purposes of this Confirmation:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address for notices or communications to   Issuer:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
To:
    	
 
    	
Cubist   Pharmaceuticals, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
65   Hayden Avenue
    
	
 
    	
 
    	
 
    	
 
    	
Lexington,   Massachusetts 02421
    
	
 
    	
 
    	
Attn:
    	
 
    	
General   Counsel
    
	
 
    	
 
    	
Telephone:
    	
 
    	
(781)   860-8660
    
	
 
    	
 
    	
Facsimile:
    	
 
    	
(781)   240-1076
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address   for notices or communications to Dealer:
    

 

9

 

	
 
    	
 
    	
To:
    	
 
    	
Morgan Stanley &   Co. International plc
    
	
 
    	
 
    	
 
    	
 
    	
c/o Morgan Stanley   & Co. LLC
    
	
 
    	
 
    	
 
    	
 
    	
1585 Broadway, 5th Floor
    
	
 
    	
 
    	
 
    	
 
    	
New York, NY 10036
    
	
 
    	
 
    	
Attention:
    	
 
    	
Steve   Soldo
    
	
 
    	
 
    	
Telephone:
    	
 
    	
(212)   761-8848
    
	
 
    	
 
    	
Facsimile:
    	
 
    	
(212)   507-6958
    
	
 
    	
 
    	
Email:
    	
 
    	
Steven.Soldo@morganstanley.com
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
With   a copy to:
    	
 
    	
Morgan Stanley & Co. International
    
	
 
    	
 
    	
 
    	
 
    	
c/o Morgan Stanley & Co.
    
	
 
    	
 
    	
 
    	
 
    	
1221 Avenue of the Americas, 34th Floor
    
	
 
    	
 
    	
 
    	
 
    	
New York, NY 10020
    
	
 
    	
 
    	
Attention:
    	
 
    	
Anthony Cicia
    
	
 
    	
 
    	
Telephone:
    	
 
    	
(212) 762-4828
    
	
 
    	
 
    	
Facsimile:
    	
 
    	
(212) 507-4338
    
	
 
    	
 
    	
Email:
    	
 
    	
Anthony.Cicia@morganstanley.com
    

 

7.                               Representations, Warranties and Agreements:

 

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

 

(i)                                     On the Trade Date, and as of the date of any election by Issuer of the Share Termination Alternative under (and as defined in) Section 8(a) below, (A) none of Issuer and its officers and directors is aware of any material nonpublic information regarding Issuer or the Shares and (B) all reports and other documents filed by Issuer with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.

 

(ii)                                  Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer acknowledges that Dealer is not making any representations or warranties or taking any position or expressing any view 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.

 

(iii)                               Prior to the Trade Date, Issuer shall deliver to Dealer a resolution of Issuer’s board of directors authorizing the Transaction and such other certificate or certificates as Dealer shall reasonably request.

 

(iv)                              Issuer is not entering into this Confirmation and will not make any election hereunder for the purpose of creating actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or raising or depressing or otherwise manipulating the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

 

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

 

(vi)                              On each of the Trade Date and the Premium Payment Date, Issuer is not, or will not be, “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the

 

10

 

United States Code) (the “Bankruptcy Code”)) and Issuer would be able to purchase 5,626,075 Shares in compliance with the corporate laws of the jurisdiction of its incorporation.

 

(vii)                           To Issuer’s knowledge, no state or local (including non-U.S. jurisdictions) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) solely and not due to any other Dealer activity as a result of Dealer or its affiliates having the power to vote, owning or holding (however defined) Shares.

 

(viii)                        Issuer shall not take any action to decrease the number of Available Shares below the Capped Number (each as defined below).

 

(ix)                              The representations and warranties of Issuer set forth in Section 3 of the Agreement and Section 1 of the Purchase Agreement (the “Purchase Agreement”) dated as of September 4, 2013 among Issuer and Morgan Stanley & Co. Incorporated, Barclays Capital Inc. and RBC Capital Markets Corporation, as representatives of the several Initial Purchasers party thereto, are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein.

 

(x)                                 Issuer understands no obligations of Dealer to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any Affiliate of Dealer or any governmental agency.

 

(xi)                              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”).

 

(xii)                           On each day during the Settlement Period, neither Issuer 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.

 

(xiii)                        (a) The Shares of Issuer issuable from time to time upon exercise of the Warrants (the “Warrant Shares”) have been duly authorized and, when delivered against payment therefor (which may include Net Share Settlement in lieu of cash) and otherwise as contemplated by the terms of the Warrant following the exercise of the Warrant in accordance with the terms and conditions of the Warrant, will be validly issued, fully-paid and non-assessable, and the issuance of the Warrant Shares will not be subject to any preemptive or similar rights and (b) a number of Warrant Shares equal to the Capped Number has been accepted for listing or quotation on the Exchange, subject to notice of issuance.  In addition, Issuer shall ensure that at all times until its delivery obligations hereunder have been met in full that the total number of Shares reserved for issuance hereunder and, prior to receipt of the Required Stockholder Approval (as defined below), for issuance under any Other Warrant Transaction (as defined below), in the aggregate, is at least equal to the Capped Number.

 

                                                (xiv)                       Issuer (i) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (ii) 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 (iii) has total assets of at least $50 million as of the date hereof.

 

(b)                                 Each of Dealer and Issuer agrees and represents that it is an “eligible contract participant” as defined in the U.S. Commodity Exchange Act, as amended.

 

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

 

11

 

economic risk of its investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own account without a view to the distribution or resale thereof, (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws and (v) it is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities.

 

(d)                                 Issuer agrees and acknowledges 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 that it is the intent of the parties that (A) 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,” 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,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code and a “payment or other transfer of property” within the meaning of Sections 362 and 546 of the Bankruptcy Code, and (B) Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e), 546(g), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

 

(e)                                  It is the intent of the parties that, in respect of Issuer, (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).

 

(f)                                   On each anniversary of the Trade Date, Issuer 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) which delivery shall be deemed to have been made if available through Issuer’s public filings.

 

8.                                      Miscellaneous:

 

(a)                                 Alternative Calculations and Issuer Payment on Early Termination and on Certain Extraordinary Events.  If Issuer shall owe Dealer any amount pursuant to Sections 12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions or pursuant to Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Issuer shall have the right, in its sole discretion, to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M. New York City time on the Merger Date, Tender Offer Date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable (“Notice of Share Termination”); provided that if Issuer does not elect to satisfy its Payment Obligation by the Share Termination Alternative, Dealer shall have the right, in its sole discretion, to elect to require Issuer to satisfy its Payment Obligation by the Share Termination Alternative, notwithstanding Issuer’s failure to elect or election to the contrary; and provided further that Issuer shall not have the right to so elect (but, for the avoidance of doubt, Dealer shall have the right to so elect) in the event of (i) an Insolvency, a Nationalization or a Merger Event, in each case, in which the consideration or proceeds to be paid to holders of Shares consists solely of cash or (ii) an Event of Default, a Termination Event or an Extraordinary Event, in each case, which resulted from an event or events within Issuer’s control.  Upon such Notice of Share Termination, the following provisions shall apply on the Scheduled Trading Day immediately following the Merger Date, the Tender Offer Date, Announcement Date, Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable:

 

	
Share   Termination Alternative:
    	
 
    	
Applicable   and means that Issuer shall deliver to Dealer the Share Termination Delivery   Property on the date on which the Payment Obligation would otherwise be due   pursuant to Section 12.7 or 12.9 of the Equity Definitions or Section   6(d)(ii) of the Agreement, as applicable (the “Share   Termination Payment Date”), in satisfaction of the Payment Obligation.
    

 

12

 

	
Share   Termination Delivery
    	
 
    	
 
    
	
Property:
    	
 
    	
A   number of Share Termination Delivery Units, as calculated by the Calculation   Agent, equal to the Payment Obligation divided by the Share Termination Unit   Price. The Calculation Agent shall adjust the Share Termination Delivery   Property by replacing any fractional portion of the aggregate amount of a   security therein with an amount of cash equal to the value of such fractional   security based on the values used to calculate the Share Termination Unit   Price.
    
	
 
    	
 
    	
 
    
	
Share   Termination Unit Price:
    	
 
    	
The   value of property contained in one Share Termination Delivery Unit on the   date such Share Termination Delivery Units are to be delivered as Share   Termination Delivery Property, as determined by the Calculation Agent in its   discretion by commercially reasonable means and notified by the Calculation   Agent to Issuer at the time of notification of the Payment Obligation.
    
	
 
    	
 
    	
 
    
	
Share   Termination Delivery Unit:
    	
 
    	
In   the case of a Termination Event, Event of Default, Delisting or Additional   Disruption Event, one Share or, in the case of an Insolvency,   Nationalization, Merger Event or Tender Offer, one Share or a unit consisting   of the number or amount of each type of property received by a holder of one   Share (without consideration of any requirement to pay cash or other   consideration in lieu of fractional amounts of any securities) in such   Insolvency, Nationalization, Merger Event or Tender Offer, as applicable. If   such Insolvency, Nationalization, Merger Event or Tender Offer involves a   choice of consideration to be received by holders, such holder shall be   deemed to have elected to receive the maximum possible amount of cash.
    
	
 
    	
 
    	
 
    
	
Failure   to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Other   applicable provisions:
    	
 
    	
If   Share Termination Alternative is applicable, the provisions of Sections 9.8,   9.9, 9.10, 9.11 (except 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 arising as a result of the fact that Seller   is the issuer of the Shares or any portion of the Share Termination Delivery   Units) and 9.12 of the Equity Definitions will be applicable as if “Physical   Settlement” applied to the Transaction, except that all references to   “Shares” shall be read as references to “Share Termination Delivery Units”.
    

 

(b)                                 Payment by Dealer.  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 of the type described in Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Issuer an amount pursuant to Section 6 of the Agreement, or (ii) Dealer owes to Issuer an amount pursuant to Article 12 of the Equity Definitions (including, for the avoidance of doubt, any amount payable in connection with an Extraordinary Event), such amount shall be deemed to be zero.

 

(c)                                  Additional Termination Events.  The occurrence of any of the following shall constitute an Additional Termination Event with respect to which the Transaction shall be the sole Affected Transaction and Issuer shall be the sole Affected Party and Dealer shall be the party entitled to designate an Early Termination Date; 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 the 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 reasonably determines that it is advisable to terminate a portion of the Transaction so that Dealer’s related hedging activities will comply with applicable securities laws, rules or regulations;

 

13

 

(ii)                                  any Person (as defined below) acquires beneficial ownership (determined in accordance with Rule 13d-3 under the Exchange Act), directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of shares of Issuer’s capital stock entitling the Person to exercise 50% or more of the total voting power of all shares of Issuer’s capital stock entitled to vote generally in elections of directors, other than an acquisition by Issuer, any of Issuer’s subsidiaries and any of Issuer’s employee benefit plans;

 

(iii)                               Issuer merges or consolidates with or into any other Person (other than a subsidiary of Issuer), another Person merges or consolidates with or into Issuer, or Issuer conveys, sells, transfers or leases all or substantially all of its assets to another Person in one transaction or a series of related transactions, other than any transaction:

 

(A)                               that does not result in a reclassification, conversion, exchange or cancellation of the outstanding Shares; or

 

(B)                               pursuant to which the holders of all classes of Issuer’s common equity immediately prior to such transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all classes of the capital stock of the continuing or surviving entity or transferee or parent thereof entitled to vote generally in the election of directors or managers of the continuing or surviving entity or transferee or parent thereof immediately after such transaction in substantially the same proportions as such entitlement immediately prior to such transaction;

 

(iv)                              Issuer’s stockholders approve any plan or proposal for the liquidation or dissolution of Issuer; or

 

(v)                                 the Shares cease to be listed on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors).

 

Notwithstanding the foregoing, a transaction or transactions set forth in clause (ii) or (iii) above will not constitute an Additional Termination Event if (A) at least 90% of the consideration paid for the Shares (excluding cash payments for fractional shares and cash payments made pursuant to dissenters’ or appraisal rights) in connection with such transaction or transactions otherwise constituting an Additional Termination Event consists of shares of common stock that are listed or quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors) or will be so traded or quoted immediately following such transaction or transactions and (B) as a result of such transaction or transactions, the “Shares” are composed of such consideration (excluding cash payments for fractional shares and cash payments made pursuant to dissenters’ or appraisal rights).

 

“Person” includes any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act.

 

(d)                                 Registration/Private Placement Procedures.  (i)  If, in the reasonable judgment of Dealer, for any reason, any Shares or any securities of Issuer or its affiliates comprising any Share Termination Delivery Units deliverable to Dealer hereunder (any such Shares or securities, “Delivered Securities”) would not be immediately freely transferable by Dealer under Rule 144 under the Securities Act, then the provisions set forth in this Section 8(d) shall apply.  At the election of Issuer by notice to Dealer within one Exchange Business Day after the relevant delivery obligation arises, but in any event at least one Exchange Business Day prior to the date on which such delivery obligation is due, either (A) all Delivered Securities delivered by Issuer to Dealer shall be, at the time of such delivery, covered by an effective registration statement of Issuer for immediate resale by Dealer (such registration statement and the corresponding prospectus (the “Prospectus”) (including, without limitation, any sections describing the plan of distribution) in form and content commercially reasonably satisfactory to Dealer) or (B) Issuer shall deliver additional Delivered Securities so that the value of such Delivered Securities, as determined 

 

14

 

by the Calculation Agent to reflect an appropriate liquidity discount, equals the value of the number of Delivered Securities that would otherwise be deliverable if such Delivered Securities were freely tradeable (without prospectus delivery) upon receipt by Dealer (such value, the “Freely Tradeable Value”); provided that Issuer may not make the election described in this clause (B) 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 delivery by Issuer to Dealer (or any Affiliate of Dealer designated by Dealer) of the Delivered Securities or the exemption pursuant to Section 4(a)(1) or Section 4(a)(3) of the Securities Act for resales of the Delivered Securities by Dealer (or any such Affiliate of Dealer).  (For the avoidance of doubt, as used in this Section 8(d) only, the term “Issuer” shall mean the issuer of the relevant securities, as the context shall require.)

 

(ii)                                  If Issuer makes the election described in Section 8(d)(i)(A) above:

 

(A)                               Dealer (or an Affiliate of Dealer designated by Dealer) shall be afforded a reasonable opportunity to conduct a due diligence investigation with respect to Issuer that is customary in scope for underwritten offerings of equity securities and that yields results that are reasonably satisfactory to Dealer or such Affiliate, as the case may be, in its discretion; and

 

(B)                               Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into an agreement (a “Registration Agreement”) on commercially reasonable terms in connection with the public resale of such Delivered Securities by Dealer or such Affiliate substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance reasonably satisfactory to Dealer or such Affiliate and Issuer, which Registration Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating to the indemnification of, and contribution in connection with the liability of, Dealer and its Affiliates and Issuer, shall provide for the payment by Issuer of all reasonable and documented expenses in connection with such resale, including all registration costs and all reasonable fees and expenses of one counsel for Dealer, and shall provide for the delivery of accountants’ “comfort letters” to Dealer or such Affiliate with respect to the financial statements and certain financial information contained in or incorporated by reference into the Prospectus.

 

(iii)                               If Issuer makes the election described in Section 8(d)(i)(B) above:

 

(A)                               Dealer (or an Affiliate of Dealer designated by Dealer) and any potential institutional purchaser of any such Delivered Securities from Dealer or such Affiliate identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation in compliance with applicable law with respect to Issuer customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them);

 

(B)                               Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into an agreement (a “Private Placement Agreement”) on commercially reasonable terms in connection with the private placement of such Delivered Securities by Issuer to Dealer or such Affiliate and the private resale of such shares by Dealer or such Affiliate, substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance reasonably satisfactory to Dealer and Issuer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating to the indemnification of, and contribution in connection with the liability of, Dealer and its Affiliates and Issuer, shall provide for the payment by Issuer of all reasonable and documented expenses in connection with such resale, including all reasonable fees and expenses of one counsel for Dealer, shall contain representations, warranties and agreements of Issuer reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales, and shall use best efforts to provide for the delivery of accountants’ “comfort letters” to Dealer or such Affiliate with respect to the financial statements and certain financial information 

 

15

 

contained in or incorporated by reference into the offering memorandum prepared for the resale of such Shares; and

 

(C)                               Issuer agrees that any Delivered Securities so delivered to Dealer, (i) may be transferred by and among Dealer and its Affiliates, and Issuer shall effect such transfer without any further action by Dealer and (ii) after the minimum “holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed with respect to such Delivered Securities, Issuer shall promptly remove, or cause the transfer agent for such Shares or securities to remove, any legends referring to any such restrictions or requirements from such Delivered Securities upon delivery by Dealer (or such Affiliate of Dealer) to Issuer or such transfer agent of seller’s and broker’s representation letters customarily delivered by Dealer in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, 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 of Dealer).

 

(D)                               Issuer shall not take, or cause 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 Issuer to Dealer (or any Affiliate designated by Dealer) of the Shares or Share Termination Delivery Units, as the case may be, or the exemption pursuant to Section 4(a)(1) or Section 4(a)(3) of the Securities Act for resales of the Shares or Share Termination Delivery Units, as the case may be, by Dealer (or any such Affiliate of Dealer).

 

(iv)                              If Issuer makes the election described in clause (i)(B) of this paragraph (d), then Dealer or its Affiliate may sell such Shares or Share Termination Delivery Units, as the case may be, during a period (the “Resale Period”) commencing on the Exchange Business Day following delivery of such Shares or Share Termination Delivery Units, as the case may be, and ending on the Exchange Business Day on which Dealer completes the sale of all such Shares or Share Termination Delivery Units, as the case may be, or a sufficient number of Shares or Share Termination Delivery Units, as the case may be, so that the realized net proceeds of such sales exceed the Freely Tradeable Value (such amount of the Freely Tradeable Value, the “Required Proceeds”).  If any of such delivered Shares or Share Termination Delivery Units remain after such realized net proceeds exceed the Required Proceeds, Dealer shall return such remaining Shares or Share Termination Delivery Units to Issuer.  If the Required Proceeds exceed the realized net proceeds from such resale, Issuer shall transfer to Dealer by the open of the regular trading session on the Exchange on the Exchange Trading Day immediately following the last day of the Resale Period the amount of such excess (the “Additional Amount”) in cash or in a number of additional Shares or Share Termination Delivery Units, as the case may be, (“Make-whole Shares”) in an 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 dollar value equal to the Additional Amount.  The Resale Period shall continue to enable the sale of the Make-whole Shares in the manner contemplated by this Section 8(d)(iv).  This provision shall be applied successively until the Additional Amount is equal to zero, subject to Section 8(i).

 

(e)                                  Amendments to Equity Definitions.  The following amendments shall be made to the Equity Definitions:

 

(i)                                     Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “an economic effect on the relevant Transaction”.

 

(ii)                                  The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause (A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent Adjustment” is specified as the Method of Adjustment in the related Confirmation of a Share Option Transaction, then following the announcement or occurrence of any Potential Adjustment Event, the Calculation Agent will determine whether such Potential Adjustment Event has an economic effect on the Transaction and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and, the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by (x) replacing the words “a diluting or concentrative” with “an” in 

 

16

 

the fifth line thereof, (y) deleting the words “diluting or concentrative effect” in the sixth to last line thereof and (z) replacing the phrase “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)” with the phrase “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)”.

 

(iii)                               Section 11.2(e)(vii) of the Equity Definitions are hereby amended by deleting the words “diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “an economic effect on the relevant Transaction”.

 

(iv)                              Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) 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); (B) replacing “will lend” with “lends” in subsection (B); and (C) 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.

 

(v)                          Section 12.9(b)(v) of the Equity Definitions is hereby amended by (A) adding the word “or” immediately before subsection “(B)” and deleting the comma at the end of subsection (A); and (B)(1) deleting subsection (C) in its entirety, (2) deleting the word “or” immediately preceding subsection (C) and (3) replacing in the penultimate sentence the words “either party” with “the Hedging Party” and (4) deleting clause (X) in the final sentence.

 

(f)                            Repurchase Notices.  Issuer shall, on any day on which Issuer 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 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 (calculated as if any Other Warrant Transaction had been entered into as of such date)).  The “Warrant Equity Percentage” as of any day is the fraction, expressed as a percentage, of the numerator of which is the sum of (x) the Number of Warrants and (y) the number of warrants included in any other warrant transaction substantially similar hereto except as to the “Trade Date,” “Effective Date” and “Number of Warrants” (an “Other Warrant Transaction”) between Dealer as buyer and Issuer as seller, and the denominator of which is the number of Shares outstanding on such day.  Issuer agrees to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party may become subject under applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure.  If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Issuer shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Issuer will reimburse any Indemnified Party for all expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Issuer) in connection with the investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Issuer.  This indemnity shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Dealer.

 

(g)                           Transfer or Assignment.  Dealer may transfer or assign its rights and obligations hereunder and under the Agreement, in whole or in part, at any time to any person or entity whatsoever without the consent of Issuer; provided that, in Issuer’s reasonable determination, Issuer will not be required, as a result of such transfer or assignment, to pay the transferee or assignee an amount under Section 2(d)(i)(4) of the Agreement greater than the amount, if any, that Issuer would have been required to pay to Dealer in the absence of such transfer or assignment.  At any time at which any Ownership Limitation or a Hedging Disruption exists, if Dealer, in its discretion after first using commercially reasonable efforts, is unable to effect a transfer or assignment to a third party on pricing terms and within a time period reasonably acceptable to Dealer such that an Ownership Limitation or a Hedging Disruption, as the case may be, 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 such Ownership Limitation or a Hedging Disruption, as the case may be, no longer exists. In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement or Section 8(a) of this Confirmation as if (i) an 

 

17

 

Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Issuer shall be the sole Affected Party with respect to such partial termination and (iii) such portion of the Transaction shall be the only Terminated Transaction.

 

(h)                          Limit on Beneficial Ownership.  Notwithstanding anything to the contrary in the Agreement or this Confirmation, in no event shall Dealer be entitled to receive, or shall be deemed to receive, any Shares in connection with this Transaction if, immediately upon giving effect to such receipt of such Shares, (i) Dealer’s Beneficial Ownership would be equal to or greater than 9.0% of the outstanding Shares, (ii) Dealer, or any “affiliate” or “associate” of Dealer, would own in excess of 13% of the outstanding Shares for purposes of Section 203 of the Delaware General Corporation Law or (iii) 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 laws, regulations or regulatory orders applicable to ownership of Shares (“Applicable Laws”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval by a state or federal regulator) of a Dealer Person under Applicable Laws and with respect to which such requirements have not been met or the relevant approval has not been received or that would give rise to any consequences under the constitutive documents of Issuer or any contract or agreement to which Issuer is a party, in each case minus (y) 1% of the number of Shares outstanding on the date of determination (each of clause (i), (ii) and (iii) above, an “Ownership Limitation”). If any delivery owed to Dealer hereunder is not made, in whole or in part, as a result of an Ownership Limitation, Dealer’s right to receive such delivery shall not be extinguished and Issuer shall make such delivery as promptly as practicable after, but in no event later than one Exchange Business Day after, Dealer gives notice to Issuer that such delivery would not result in any of such Ownership Limitations being breached.  “Dealer’s Beneficial Ownership” means the “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated thereunder (collectively, “Section 13”)) of Shares, without duplication, by Dealer, together with any of its affiliates or other person subject to aggregation with Dealer under Section 13 for purposes of “beneficial ownership”, or by any “group” (within the meaning of Section 13) of which Dealer is or may be deemed to be a part (Dealer and any such affiliates, persons and groups, collectively, “Dealer Group”) (or, to the extent that, as a result of a change in law, regulation or interpretation after the date hereof, the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such number).  Notwithstanding anything in the Agreement or this Confirmation to the contrary, Dealer shall not become the record or beneficial owner, or otherwise have any rights as a holder, of any Shares that Dealer is not entitled to receive at any time pursuant to this Section 8(h), until such time as such Shares are delivered pursuant to this Section 8(h).

 

(i)                               Limitation On Delivery of Shares.  Notwithstanding anything herein or in the Agreement to the contrary, in no event shall Issuer be required to deliver Shares in connection with the Transaction in excess of two times the Number of Warrants (the “Capped Number”). Notwithstanding anything to the contrary in the Agreement, this Confirmation or the Equity Definitions, in no event shall the Capped Number be subject to adjustment, to the extent that such adjustment would cause the Capped Number to exceed the number of Available Shares, unless such adjustment results from actions of Issuer or events within Issuer’s control.  Issuer represents and warrants to Dealer (which representation and warranty shall be deemed to be repeated on each day that the Transaction is outstanding) that the Capped Number is equal to or less than the number of authorized but unissued Shares of the Issuer that are not reserved for future issuance in connection with transactions in the Shares (other than the Transaction) on the date of the determination of the Capped Number (such Shares, the “Available Shares”).  In the event Issuer shall not have delivered the full number of Shares otherwise deliverable as a result of this Section 8(i) (the resulting deficit, the “Deficit Shares”), Issuer 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 (i) Shares are repurchased, acquired or otherwise received by Issuer or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (ii) authorized and unissued Shares reserved for issuance in respect of other transactions prior to the Trade Date become no longer so reserved or (iii) Issuer additionally authorizes any unissued Shares that are not reserved for other transactions.  Issuer shall immediately notify Dealer of the occurrence of any of the foregoing events (including the number of Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be delivered) and promptly deliver such Shares thereafter.  Issuer shall not, until Issuer’s obligations under the Transaction have been satisfied in full, use any Shares that become available for potential delivery to Dealer as a result of any of the foregoing events for the settlement or satisfaction of any transaction or obligation other than the Transaction or the “Transaction” under any Other Warrant Transaction or reserve any such Shares for future 

 

18

 

issuance for any purpose other than to satisfy Issuer’s obligations to Dealer under the Transaction or the “Transaction” under any Other Warrant Transaction.

 

Notwithstanding anything to the contrary herein or in the Definitions or the Agreement, any Payment Obligation shall, for all purposes, be calculated without regard to the provisions set forth under this Section 8(i); provided that the number of Shares deliverable pursuant to Section 8(a) above (if applicable) shall not exceed the applicable Capped Number.

 

(j)                            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 Number of Shares to be Delivered with respect to one or more Components), if Dealer determines, in its reasonable discretion, that such extension is reasonably necessary or appropriate to (i) preserve Dealer’s 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 or (ii) to enable Dealer to effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would, if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Dealer.

 

(k)                          No Netting and Set-Off.  Each party waives any and all rights it may have to set off obligations arising under the Agreement and the Transaction against other obligations between the parties, whether arising under any other agreement, applicable law or otherwise.

 

(l)                              Status of Claims in Bankruptcy.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of common stockholders or Issuer in the event of Issuer’s bankruptcy.  For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any time other than during Issuer’s bankruptcy.

 

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

 

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

 

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

 

(p)                          Effectiveness.  If, prior to the Effective Date, Dealer reasonably determines that it is advisable to cancel the Transaction because of concerns that Dealer’s related hedging activities could be viewed as not complying with applicable securities laws, rules or regulations, the Transaction shall be cancelled and shall not become effective, and neither party shall have any obligation to the other party in respect of the Transaction.

 

(q)                          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.

 

(r)                             Agreements and Acknowledgments Regarding Hedging.  Issuer understands, acknowledges and agrees that: (A) at any time on and prior to the final 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 VWAP Price; 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 VWAP Price, each in a manner that may be adverse to Issuer.

 

19

 

(s)                            Wall Street Transparency and Accountability Act of 2010.  The parties hereby agree that none of (v) Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), (w) any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, (x) the enactment of WSTAA or any regulation under the WSTAA, (y) any requirement under WSTAA nor (z) an amendment made by WSTAA, shall limit or otherwise impair either party’s 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, Loss of Stock Borrow, Increased Cost of Stock Borrow, an Excess Ownership Position or Illegality (as defined in the Agreement)).

 

(t)                             Certain Tax Considerations.

 

(i)                                     Dealer makes the following representations to Issuer: (A) it is a “foreign person” (as that term is used in Section 1.6041-4(a)(4) of the U.S. Treasury Regulations), and (B) it is a “non-U.S. branch of a foreign person” (as that term is used in Section 1.1441-4(a)(3)(ii) of the U.S. Treasury Regulations) for U.S. federal income tax purposes.  Dealer agrees to complete, accurately and in a manner reasonably satisfactory to Issuer, to execute and to deliver to Issuer a valid U.S. Internal Revenue Service Form W-8BEN (or any successor form) and any required attachments thereto (x) upon execution of this Confirmation and thereafter prior to the date on which such form becomes invalid, (y) promptly upon reasonable demand by Issuer and (z) promptly upon learning that any Form W-8BEN (or any successor thereto) previously provided by Dealer has become obsolete, invalid or incorrect.

 

(ii)                                  Issuer makes the following representation to Dealer: it is a corporation established under the laws of the State of Delaware and is a “United States person” (as that term is defined in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended).

 

(iii)                               Issuer agrees to complete, accurately and in a manner reasonably satisfactory to Dealer, to execute and to deliver to Dealer a valid U.S. Internal Revenue Service Form W-9 (or any successor form) and any required attachments thereto (A) upon execution of this Confirmation and thereafter prior to the date on which such form becomes invalid, (B) promptly upon reasonable demand by Dealer and (C) promptly upon learning that any Form W-9 (or any successor thereto) previously provided by Issuer has become obsolete, invalid or incorrect.

 

(u)                          Early Unwind.  In the event the sale by Issuer of the Firm Securities (as defined in the Purchase Agreement) is not consummated with the Initial Purchasers pursuant to the Purchase Agreement for any reason by the close of business in New York on September 10, 2013 (or such later date as agreed upon by the parties, which in no event shall be later than the fifth business day thereafter) (September 10, 2013 or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (x) the Transaction and all of the respective rights and obligations of Dealer and Issuer thereunder shall be cancelled and terminated and (y) Issuer shall assume, or reimburse the cost of, derivatives and other hedging activities entered into by Dealer or one or more of its affiliates in connection with hedging the Transaction and the unwind of such hedging activities, and purchase any Shares purchased by Dealer or one or more of its affiliates in connection with hedging the Transaction at the cost at which Dealer or such affiliates purchased such Shares. Following such termination, cancellation and payment, subject to the preceding sentence, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of either party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date.

 

(v)                          Waiver of Jury Trial.  EACH OF ISSUER AND BUYER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF BUYER OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

 

(w)                        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 

 

20

 

RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

 

21

 

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.

 

Please confirm that the foregoing correctly sets forth the terms of the agreement between Dealer and Issuer with respect to the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and returning an executed copy to us.

 

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,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MORGAN STANLEY & CO. INTERNATIONAL PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Joseba Picaza
    	
 
    
	
 
    	
Name:   Joseba Picaza
    	
 
    
	
 
    	
Title:   Executive Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MORGAN STANLEY & CO. LLC
    	
 
    
	
as Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Sylvain Mirochnikoff
    	
 
    
	
 
    	
Name:   
    	
Sylvain   Mirochnikoff
    	
 
    
	
 
    	
Title:   
    	
Managing   Director
    	
 
    

 

22

 

	
Issuer hereby agrees to, accepts and confirms the   terms of the foregoing as of the Trade Date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CUBIST PHARMACEUTICALS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Michael J. Tomsicek
    	
 
    
	
 
    	
Name:   
    	
Michael   J. Tomsicek
    	
 
    
	
 
    	
Title:
    	
Senior   Vice President and
    	
 
    
	
 
    	
 
    	
Chief   Financial Officer
    	
 
    

 

23

 

ANNEX A

 

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.
    	
 
    	
15,923
    	
 
    	
November 30, 2018
    
	
2.
    	
 
    	
15,923
    	
 
    	
December 3, 2018
    
	
3.
    	
 
    	
15,923
    	
 
    	
December 4, 2018
    
	
4.
    	
 
    	
15,923
    	
 
    	
December 5, 2018
    
	
5.
    	
 
    	
15,923
    	
 
    	
December 6, 2018
    
	
6.
    	
 
    	
15,923
    	
 
    	
December 7, 2018
    
	
7.
    	
 
    	
15,923
    	
 
    	
December 10, 2018
    
	
8.
    	
 
    	
15,923
    	
 
    	
December 11, 2018
    
	
9.
    	
 
    	
15,923
    	
 
    	
December 12, 2018
    
	
10.
    	
 
    	
15,923
    	
 
    	
December 13, 2018
    
	
11.
    	
 
    	
15,923
    	
 
    	
December 14, 2018
    
	
12.
    	
 
    	
15,923
    	
 
    	
December 17, 2018
    
	
13.
    	
 
    	
15,923
    	
 
    	
December 18, 2018
    
	
14.
    	
 
    	
15,923
    	
 
    	
December 19, 2018
    
	
15.
    	
 
    	
15,923
    	
 
    	
December 20, 2018
    
	
16.
    	
 
    	
15,923
    	
 
    	
December 21, 2018
    
	
17.
    	
 
    	
15,923
    	
 
    	
December 24, 2018
    
	
18.
    	
 
    	
15,923
    	
 
    	
December 26, 2018
    
	
19.
    	
 
    	
15,923
    	
 
    	
December 27, 2018
    
	
20.
    	
 
    	
15,923
    	
 
    	
December 28, 2018
    
	
21.
    	
 
    	
15,923
    	
 
    	
December 31, 2018
    
	
22.
    	
 
    	
15,923
    	
 
    	
January 2, 2019
    
	
23.
    	
 
    	
15,923
    	
 
    	
January 3, 2019
    
	
24.
    	
 
    	
15,923
    	
 
    	
January 4, 2019
    
	
25.
    	
 
    	
15,923
    	
 
    	
January 7, 2019
    
	
26.
    	
 
    	
15,923
    	
 
    	
January 8, 2019
    
	
27.
    	
 
    	
15,923
    	
 
    	
January 9, 2019
    
	
28.
    	
 
    	
15,923
    	
 
    	
January 10, 2019
    
	
29.
    	
 
    	
15,923
    	
 
    	
January 11, 2019
    
	
30.
    	
 
    	
15,923
    	
 
    	
January 14, 2019
    
	
31.
    	
 
    	
15,923
    	
 
    	
January 15, 2019
    
	
32.
    	
 
    	
15,923
    	
 
    	
January 16, 2019
    
	
33.
    	
 
    	
15,923
    	
 
    	
January 17, 2019
    
	
34.
    	
 
    	
15,923
    	
 
    	
January 18, 2019
    
	
35.
    	
 
    	
15,923
    	
 
    	
January 22, 2019
    
	
36.
    	
 
    	
15,923
    	
 
    	
January 23, 2019
    
	
37.
    	
 
    	
15,923
    	
 
    	
January 24, 2019
    
	
38.
    	
 
    	
15,923
    	
 
    	
January 25, 2019
    
	
39.
    	
 
    	
15,923
    	
 
    	
January 28, 2019
    
	
40.
    	
 
    	
15,923
    	
 
    	
January 29, 2019
    
	
41.
    	
 
    	
15,923
    	
 
    	
January 30, 2019
    
	
42.
    	
 
    	
15,923
    	
 
    	
January 31, 2019
    

 

A-1

 

	
Component   Number
    	
 
    	
Number of Warrants
    	
 
    	
Expiration Date
    
	
43.
    	
 
    	
15,923
    	
 
    	
February 1, 2019
    
	
44.
    	
 
    	
15,923
    	
 
    	
February 4, 2019
    
	
45.
    	
 
    	
15,923
    	
 
    	
February 5, 2019
    
	
46.
    	
 
    	
15,923
    	
 
    	
February 6, 2019
    
	
47.
    	
 
    	
15,923
    	
 
    	
February 7, 2019
    
	
48.
    	
 
    	
15,923
    	
 
    	
February 8, 2019
    
	
49.
    	
 
    	
15,923
    	
 
    	
February 11, 2019
    
	
50.
    	
 
    	
15,923
    	
 
    	
February 12, 2019
    
	
51.
    	
 
    	
15,923
    	
 
    	
February 13, 2019
    
	
52.
    	
 
    	
15,923
    	
 
    	
February 14, 2019
    
	
53.
    	
 
    	
15,923
    	
 
    	
February 15, 2019
    
	
54.
    	
 
    	
15,923
    	
 
    	
February 19, 2019
    
	
55.
    	
 
    	
15,923
    	
 
    	
February 20, 2019
    
	
56.
    	
 
    	
15,923
    	
 
    	
February 21, 2019
    
	
57.
    	
 
    	
15,923
    	
 
    	
February 22, 2019
    
	
58.
    	
 
    	
15,923
    	
 
    	
February 25, 2019
    
	
59.
    	
 
    	
15,923
    	
 
    	
February 26, 2019
    
	
60.
    	
 
    	
15,923
    	
 
    	
February 27, 2019
    
	
61.
    	
 
    	
15,923
    	
 
    	
February 28, 2019
    
	
62.
    	
 
    	
15,923
    	
 
    	
March 1, 2019
    
	
63.
    	
 
    	
15,923
    	
 
    	
March 4, 2019
    
	
64.
    	
 
    	
15,923
    	
 
    	
March 5, 2019
    
	
65.
    	
 
    	
15,923
    	
 
    	
March 6, 2019
    
	
66.
    	
 
    	
15,923
    	
 
    	
March 7, 2019
    
	
67.
    	
 
    	
15,923
    	
 
    	
March 8, 2019
    
	
68.
    	
 
    	
15,923
    	
 
    	
March 11, 2019
    
	
69.
    	
 
    	
15,923
    	
 
    	
March 12, 2019
    
	
70.
    	
 
    	
15,923
    	
 
    	
March 13, 2019
    
	
71.
    	
 
    	
15,923
    	
 
    	
March 14, 2019
    
	
72.
    	
 
    	
15,923
    	
 
    	
March 15, 2019
    
	
73.
    	
 
    	
15,923
    	
 
    	
March 18, 2019
    
	
74.
    	
 
    	
15,923
    	
 
    	
March 19, 2019
    
	
75.
    	
 
    	
15,923
    	
 
    	
March 20, 2019
    
	
76.
    	
 
    	
15,923
    	
 
    	
March 21, 2019
    
	
77.
    	
 
    	
15,923
    	
 
    	
March 22, 2019
    
	
78.
    	
 
    	
15,923
    	
 
    	
March 25, 2019
    
	
79.
    	
 
    	
15,923
    	
 
    	
March 26, 2019
    
	
80.
    	
 
    	
15,922
    	
 
    	
March 27, 2019
    

 

A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]