Document:

Exhibit 10.8

 

Credit Suisse Capital LLC

c/o Credit Suisse Securities (USA) LLC

11 Madison Avenue

New York, NY 10010

August 12, 2019

		To:	Ironwood Pharmaceuticals, Inc.

301 Binney
Street

Cambridge,
Massachusetts, 02142
 Attention:               General Counsel

 Telephone No.:      (617) 621-7722

 Facsimile No.:        (617) 588-0623

 

		Re:	Additional Call Option Transaction

 

The purpose of this
letter agreement (this “Confirmation”) is to confirm the terms and conditions of the call option transaction
entered into between Credit Suisse Capital LLC (“Dealer”), represented by Credit Suisse Securities (USA) LLC
(“Agent”) and Ironwood Pharmaceuticals, Inc. (“Counterparty”) as of the Trade Date specified
below (the “Transaction”). This letter agreement constitutes a “Confirmation” as referred to in
the ISDA Master Agreement specified below. This Confirmation shall replace any previous agreements with respect to the Transaction
and serve as the final documentation for the Transaction.

 

The definitions and
provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published
by the International Swaps and Derivatives Association, Inc. (“ISDA”) are incorporated into this Confirmation.
In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation shall govern. Certain
defined terms used herein are based on terms that are defined in the Offering Memorandum dated August 7, 2019 (the “Offering
Memorandum”) relating to the 1.50% Convertible Senior Notes due 2026 (as originally issued by Counterparty, the “Convertible
Notes” and each USD 1,000 principal amount of Convertible Notes, a “Convertible Note”) issued by Counterparty
in an aggregate initial principal amount of USD 175,000,000 (as increased by an aggregate principal amount of USD 25,000,000 pursuant
to the exercise by the Initial Purchaser (as defined herein) of its option to purchase additional Convertible Notes pursuant to
the Purchase Agreement (as defined herein)) pursuant to an Indenture dated August 12, 2019 between Counterparty and U.S. Bank National
Association, as trustee (the “Indenture”). In the event of any inconsistency between the terms defined in the
Offering Memorandum, the Indenture and this Confirmation, this Confirmation shall govern. The parties acknowledge that this Confirmation
is entered into on the date hereof with the understanding that (i) definitions set forth in the Indenture which are also defined
herein by reference to the Indenture and (ii) sections of the Indenture that are referred to herein will conform to the descriptions
thereof in the Offering Memorandum. If any such definitions in the Indenture or any such sections of the Indenture differ from
the descriptions thereof in the Offering Memorandum, the descriptions thereof in the Offering Memorandum will govern for purposes
of this Confirmation. The parties further acknowledge that the Indenture section numbers used herein are based on the Indenture
as executed. Subject to the foregoing, references to the Indenture herein are references to the Indenture as in effect on the date
hereof, and if the Indenture is amended or supplemented following such date (other than any amendment or supplement (x) pursuant
to Section 10.01(h) of the Indenture that, as determined by the Calculation Agent, conforms the Indenture to the description of
Convertible Notes in the Offering Memorandum or (y) pursuant to Section 4.07(a) of the Indenture, subject, in the case of this
clause (y), to the second paragraph under “Method of Adjustment” in Section ‎3), any such amendment or supplement
will be disregarded for purposes of this Confirmation (other than as provided in Section 9(h)(ii) below) unless the parties agree
otherwise in writing.

 

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

 

     

     

    

 

1.           This
Confirmation evidences a complete and binding agreement between Dealer and Counterparty as to the terms of the Transaction to which
this Confirmation relates. This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the
2002 ISDA Master Agreement (the “Agreement”) as if Dealer and Counterparty had executed an agreement in such
form (but without any Schedule except for (i) the election of US Dollars (“USD”) as the Termination Currency,
(ii) the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine), (iii)
the election that following the payment of the Premium, the condition precedent in Section 2(a)(iii)(1) of the Agreement with respect
to an Event of Default or Potential Event of Default (other than an Event of Default arising under Section 5(a)(ii) or 5(a)(iv)
of the Agreement) shall not apply to a payment or delivery owing by Dealer to Counterparty, and (iv) the election that the “Cross
Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Dealer with a “Threshold Amount” of 3%
of Dealer’s ultimate parent’s shareholders’ equity on the Trade Date (provided that (a) the phrase “, or
becoming capable at such time of being declared,” shall be deleted from clause (1) of such Section 5(a)(vi) of the Agreement,
(b) “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement, except that such term
shall not include obligations in respect of deposits received in the ordinary course of Dealer’s banking business and (c)
the following sentence shall be added to the end of Section 5(a)(vi) of the Agreement: “Notwithstanding the foregoing, a
default under subsection (2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission
of an administrative or operational nature; (y) funds were available to enable the relevant party to make the payment when due;
and (z) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.”).
In the event of any inconsistency between provisions of the Agreement and this Confirmation, this Confirmation will prevail for
the purpose of the Transaction to which this Confirmation relates. The parties hereby agree that no transaction other than the
Transaction to which this Confirmation relates shall be governed by the Agreement. 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. In the event of any inconsistency between this Confirmation and the Agreement,
this Confirmation shall govern.

 

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:	August 12, 2019
	 	 
	Effective Date:	The second Exchange Business Day immediately prior to the Premium Payment Date
	 	 
	Option Style:	“Modified American”, as described under “Procedures for Exercise” below
	 	 
	Option Type:	Call
	 	 
	Buyer:	Counterparty
	 	 
	Seller:	Dealer
	 	 
	Shares:	The Class A common stock of Counterparty, par value USD 0.001 per Share (Exchange symbol “IRWD”).
	 	 
	Number of Options:	25,000.  For the avoidance of doubt, the Number of Options shall be reduced by any Options exercised by Counterparty.  In no event will the Number of Options be less than zero.
	 	 
	Applicable Percentage:	75%
	 	 
	Option Entitlement:	A number equal to the product of the Applicable Percentage and 74.6687.
	 	 
	Strike Price:	USD 13.3925
	 	 
	Cap Price:	USD 17.0450
	 	 
	Premium:	USD 1,170,000.00

 

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	Premium Payment Date:	August 14, 2019
	 	 
	Exchange:	The NASDAQ Global Select Market
	 	 
	Related Exchange(s):	All Exchanges
	 	 
	Excluded Provisions:	Section 4.05(h) and Section 4.04 of the Indenture.
	 	 

 

Procedures for Exercise.  

 

	Conversion Date:	With respect to any conversion of a Convertible Note (other than any conversion of Convertible Notes with a Conversion Date occurring prior to the Final Conversion Period Start Date (any such conversion, an “Early Conversion”), to which the provisions of Section 9(h)(iv) of this Confirmation shall apply), the date on which the Holder (as such term is defined in the Indenture) of such Convertible Note satisfies all of the requirements for conversion thereof as set forth in Section 4.02(b) of the Indenture; provided that if Counterparty has not delivered to Dealer a related Notice of Exercise, then in no event shall a Conversion Date be deemed to occur hereunder (and no Option shall be exercised or deemed to be exercised hereunder) with respect to any surrender of a Convertible Note for conversion in respect of which Counterparty has elected to designate a financial institution for exchange in lieu of conversion of such Convertible Note pursuant to Section 4.11 of the Indenture.
	 	 
	Final Conversion Period Start Date:	The 45th Scheduled Valid Day immediately preceding June 15, 2026
	 	 
	Expiration Time:	The Valuation Time
	 	 
	Expiration Date:	June 15, 2026, subject to earlier exercise.
	 	 
	Multiple Exercise:	Applicable, as described under “Automatic Exercise” below.
	 	 
	Automatic Exercise:	Notwithstanding Section 3.4 of the Equity Definitions, on each Conversion Date on or after the Final Conversion Period Start Date in respect of which a Notice of Conversion that is effective as to Counterparty has been delivered by the relevant converting Holder, a number of Options equal to (i) the number of Convertible Notes in denominations of USD 1,000 as to which such Conversion Date has occurred minus (ii) the number of Options that are or are deemed to be automatically exercised on such Conversion Date under the Base Call Option Transaction Confirmation letter agreement dated August 7, 2019 between Dealer and Counterparty (the “Base Call Option Confirmation”), shall be deemed to be automatically exercised; provided that such Options shall be exercised or deemed exercised only if Counterparty has provided a Notice of Exercise to Dealer in accordance with “Notice of Exercise” below.

 

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	 	Notwithstanding the foregoing, in no event shall the number of Options that are exercised or deemed exercised hereunder exceed the Number of Options.
	 	 
	Notice of Exercise:	Notwithstanding anything to the contrary in the Equity Definitions or under “Automatic Exercise” above, in order to exercise any Options relating to Convertible Notes with a Conversion Date occurring on or after the Final Conversion Period Start Date, Counterparty must notify Dealer in writing, including by email, before 5:00 p.m. (New York City time) on the Scheduled Valid Day immediately preceding the Expiration Date specifying the number of such Options (including, if applicable, whether all or any portion of such exercise relates to the conversion of the Convertible Notes in connection with which holders thereof are entitled to receive additional shares and/or cash pursuant to the adjustment of the Conversion Rate set forth in Section 4.04 of the Indenture) provided that, notwithstanding the foregoing, such notice (and the related exercise of Options hereunder) shall be effective if given after the applicable notice deadline specified above but prior to 5:00 p.m., New York City time, on the third Exchange Business Day following such notice deadline, in which event the Calculation Agent shall have the right to adjust Dealer’s delivery obligation hereunder and the Settlement Date in a commercially reasonable manner, with respect to the exercise of such Options, as appropriate to reflect the additional commercially reasonable costs and losses (limited to losses as a result of hedging mismatches and market losses, assuming that Dealer maintains commercially reasonable hedge positions) and expenses incurred by Dealer in connection with its hedging activities (including the unwinding of any hedge position), with such adjustments made assuming that Dealer maintains commercially reasonable hedge positions, solely resulting from Dealer not having received such notice prior to such notice deadline (it being understood that the adjusted delivery obligation described in the preceding proviso can never be less than zero and can never require any payment by Counterparty); provided further that if the Relevant Settlement Method for such Options is (x) Net Share Settlement and the Specified Cash Amount is not USD 1,000, (y) Cash Settlement or (z) Combination Settlement, Dealer shall have received a separate notice (the “Notice of Final Settlement Method”) (which, for the avoidance of doubt, may be by email) in respect of all such Convertible Notes before 5:00 p.m. (New York City time) on the Final Conversion Period Start Date specifying (1) the Relevant Settlement Method for such Options, and (2) if the settlement method for the related Convertible Notes is not Settlement in Shares or Settlement in Cash (each as defined below), the fixed amount of cash per Convertible Note that Counterparty has elected to deliver to Holders (as such term is defined in the Indenture) of the related Convertible Notes (the “Specified Cash Amount”) and if Counterparty fails to timely provide such Notice of Final Settlement Method, it shall be deemed to have provided a Notice of Final Settlement Method indicating that the Relevant Settlement Method is Net Share Settlement and that the settlement method for the related Relevant Convertible Notes is a combination of cash and shares with a Specified Cash Amount of USD 1,000. 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 Notes that is not Net Share Settlement with a Specified Cash Amount of USD 1,000.

 

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	Valuation Time:	At the close of trading of the regular trading session on the Exchange; provided that if the principal trading session is extended, the Calculation Agent shall determine the Valuation Time in good faith and in its commercially reasonable discretion.
	 	 
	Market Disruption Event:	Section 6.3(a) of the Equity Definitions is hereby replaced in its entirety by the following:
	 	 
	 	“‘Market Disruption Event’ means, in respect of a Share, (i) a failure by the primary United States national or regional securities exchange or market on which the Shares are listed or admitted for trading to open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m. (New York City time) on any Scheduled Valid Day for the Shares for more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in the Shares or in any options contracts or futures contracts relating to the Shares.”

 

Settlement Terms.    

 

	Settlement Method:	For any Option, Net Share Settlement; provided that if the Relevant Settlement Method set forth below for such Option is not Net Share Settlement, then the Settlement Method for such Option shall be such Relevant Settlement Method, but only if Counterparty shall have notified Dealer of the Relevant Settlement Method in the Notice of Final Settlement Method for such Option.
	 	 
	Relevant Settlement Method:	In respect of any Option:
	 	 
	 	(i)
    if Counterparty has elected to settle its conversion obligations in respect of the related Convertible Note (A) entirely in
    Shares pursuant to Section 4.02(a)(ii)(A) of the Indenture (together with cash in lieu of fractional Shares) (such settlement
    method, “Settlement in Shares”), (B) in a combination of cash and Shares pursuant to Section 4.02(a)(ii)(C)
    of the Indenture with a Specified Cash Amount less than USD 1,000 (such settlement method, “Low Cash Combination
    Settlement”) or (C) in a combination of cash and Shares pursuant to Section 4.02(a)(ii)(C) of the Indenture with
    a Specified Cash Amount equal to USD 1,000, then, in each case, the Relevant Settlement Method for such Option shall be Net
    Share Settlement;

 

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	 	(ii) if Counterparty has elected to settle its conversion obligations in respect of the related Convertible Note in a combination of cash and Shares pursuant to Section 4.02(a)(ii)(C) of the Indenture with a Specified Cash Amount greater than USD 1,000, then the Relevant Settlement Method for such Option shall be Combination Settlement; and
	 	 
	 	(iii) if Counterparty has elected to settle its conversion obligations in respect of the related Convertible Note entirely in cash pursuant to Section 4.02(a)(ii)(B) of the Indenture (such settlement method, “Settlement in Cash”), then the Relevant Settlement Method for such Option shall be Cash Settlement.

 

	Net Share Settlement:	If Net Share Settlement is applicable to any Option exercised or deemed exercised hereunder, Dealer will deliver to Counterparty, on the relevant Settlement Date for each such Option, a number of Shares (the “Net Share Settlement Amount”) equal to the sum, for each Valid Day during the Settlement Averaging Period for each such Option, of (i) (a) the Daily Option Value for such Valid Day, divided by (b) the Relevant Price on such Valid Day, divided by (ii) the number of Valid Days in the Settlement Averaging Period; provided that in no event shall the Net Share Settlement Amount for any Option exceed a number of Shares equal to the Applicable Limit for such Option divided by the Applicable Limit Price on the Settlement Date for such Option.
	 	 
	 	Dealer will pay cash in lieu of delivering any fractional Shares to be delivered with respect to any Net Share Settlement Amount valued at the Relevant Price for the last Valid Day of the Settlement Averaging Period.
	 	 
	Combination Settlement:	If Combination Settlement is applicable to any Option exercised or deemed exercised hereunder, Dealer will pay or deliver, as the case may be, to Counterparty, on the relevant Settlement Date for each such Option:

 

		(i)	cash (the “Combination Settlement Cash Amount”)
equal to the sum, for each Valid Day during the Settlement Averaging Period for such Option, of (A) an amount (the “Daily
Combination Settlement Cash Amount”) equal to the lesser of (1) the product of (x) the Applicable Percentage and (y)
the Specified Cash Amount minus USD 1,000 and (2) the Daily Option Value, divided by (B) the number of Valid Days
in the Settlement Averaging Period; provided that if the calculation in clause (A) above results in zero or a negative
number for any Valid Day, the Daily Combination Settlement Cash Amount for such Valid Day shall be deemed to be zero; and

 

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		(ii)	Shares (the “Combination Settlement Share Amount”)
equal to the sum, for each Valid Day during the Settlement Averaging Period for such Option, of a number of Shares for such Valid
Day (the “Daily Combination Settlement Share Amount”) equal to (A) (1) the Daily Option Value on such Valid
Day minus the Daily Combination Settlement Cash Amount for such Valid Day, divided by (2) the Relevant Price on
such Valid Day, divided by (B) the number of Valid Days in the Settlement Averaging Period; provided that if the
calculation in sub-clause (A)(1) above results in zero or a negative number for any Valid Day, the Daily Combination Settlement
Share Amount for such Valid Day shall be deemed to be zero;

 

	 	provided that in no event shall the sum of (x) the Combination Settlement Cash Amount for any Option and (y) the Combination Settlement Share Amount for such Option multiplied by the Applicable Limit Price on the Settlement Date for such Option, exceed the Applicable Limit for such Option.
	 	 
	 	Dealer will pay cash in lieu of delivering any fractional Shares to be delivered with respect to any Combination Settlement Share Amount valued at the Relevant Price for the last Valid Day of the Settlement Averaging Period.
	 	 
	Cash Settlement:	If Cash Settlement is applicable to any Option exercised or deemed exercised hereunder, in lieu of Section 8.1 of the Equity Definitions, Dealer will pay to Counterparty, on the relevant Settlement Date for each such Option, an amount of cash (the “Cash Settlement Amount”) equal to the sum, for each Valid Day during the Settlement Averaging Period for such Option, of (i) the Daily Option Value for such Valid Day, divided by (ii) the number of Valid Days in the Settlement Averaging Period.  
	 	 
	Daily Option Value:	For any Valid Day, an amount equal to (i) the Option Entitlement on such Valid Day, multiplied by (ii) (A) the lesser of the Relevant Price on such Valid Day and the Cap Price, less (B) the Strike Price on such Valid Day; provided that if the calculation contained in clause (ii) above results in a negative number, the Daily Option Value for such Valid Day shall be deemed to be zero.  In no event will the Daily Option Value be less than zero.
	 	 
	Applicable Limit:	For any Option, an amount of cash equal to the Applicable Percentage multiplied by the excess of (i) the aggregate of (A) the amount of cash, if any, paid to the Holder of the related Convertible Note upon conversion of such Convertible Note as determined pursuant to Section 4.02(a)(ii) of the Indenture and (B) the number of Shares, if any, delivered to the Holder of the related Convertible Note upon conversion of such Convertible Note as determined pursuant to Section 4.02(a)(ii) of the Indenture multiplied by the Applicable Limit Price on the Settlement Date for such Option, over (ii) USD 1,000.  

 

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	Applicable Limit Price:	On any day, the opening price as displayed under the heading “Op” on Bloomberg page IRWD <equity> (or any successor thereto).
	 	 
	Valid Day:	A day on which (i) there is no Market Disruption Event and (ii) trading in the Shares generally occurs on the Exchange or, if the Shares are not then listed on the Exchange, on the principal other United States national or regional securities exchange on which the Shares are then listed or, if the Shares are not then listed on a United States national or regional securities exchange, on the principal other market on which the Shares are then listed or admitted for trading. If the Shares are not so listed or admitted for trading, “Valid Day” means a Business Day.
	 	 
	Scheduled Valid Day:	A day that is scheduled to be a Valid Day on the principal United States national or regional securities exchange or market on which the Shares are listed or admitted for trading.  If the Shares are not so listed or admitted for trading, “Scheduled Valid Day” means a Business Day.
	 	 
	Business Day:	Any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York is authorized or required by law or executive order to close or be closed.  
	 	 
	Relevant Price:	On any Valid Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page IRWD <equity> AQR (or any successor thereto) (“Bloomberg VWAP”) in respect of the period from the scheduled opening time of the Exchange to the Scheduled Closing Time of the Exchange on such Valid Day (or if Bloomberg VWAP is unavailable at such time, the market value of one Share on such Valid Day, as determined by the Calculation Agent using, if practicable, a volume-weighted average method).  The Relevant Price will be determined without regard to after-hours trading or any other trading outside of the regular trading session trading hours.
	 	 
	Settlement Averaging Period:	 For any Option and regardless of the Settlement Method applicable to such Option, the 40 consecutive Valid Days commencing on, and including, the 41st Scheduled Valid Day immediately prior to the Expiration Date.
	 	 
	Settlement Date:	For any Option, the second Business Day immediately following the final Valid Day of the Settlement Averaging Period for such Option.
	 	 
	Settlement Currency:	USD

 

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	Other Applicable Provisions:	The provisions of Sections 9.1(c), 9.8, 9.9 and 9.11 of the Equity Definitions will be applicable, except that all references in such provisions to “Physically-settled” shall be read as references to “Share Settled”.  “Share Settled” in relation to any Option means that Net Share Settlement or Combination Settlement is applicable to that Option.
	 	 
	Representation and Agreement:	Notwithstanding anything to the contrary in the Equity Definitions (including, but not limited to, Section 9.11 thereof), the parties acknowledge that (i) any Shares delivered to Counterparty may be, upon delivery, subject to restrictions and limitations arising from Counterparty’s status as issuer of the Shares under applicable securities laws, (ii) Dealer may deliver any Shares required to be delivered hereunder in certificated form in lieu of delivery through the Clearance System and (iii) any Shares delivered to Counterparty may be “restricted securities” (as defined in Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”)).

 

		3.	Additional Terms applicable to the Transaction.

 

Adjustments applicable to the
Transaction:

 

	Potential Adjustment Events:	Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential Adjustment Event” means an occurrence of any event or condition, as set forth in any Dilution Adjustment Provision, that would result in an adjustment under the Indenture to the “Conversion Rate” or the composition of a “unit of Reference Property” or to any “Last Reported Sale Price”, “Daily VWAP”, “Daily Conversion Value” or “Daily Settlement Amount” (each as defined in the Indenture).  For the avoidance of doubt, Dealer shall not have any delivery or payment 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 (in each case, whether upon conversion or otherwise) (collectively, the “Conversion Rate Adjustment Fallback Provisions”), and no adjustment shall be made to the terms of the Transaction, on account of (x) any event or condition described in the Conversion Rate Adjustment Fallback Provisions or (y) any other transaction in which holders of the Convertible Notes are entitled to participate, in each case, in lieu of an adjustment under the Indenture of the type referred to in the immediately preceding sentence (including, without limitation, pursuant to the Conversion Rate Adjustment Fallback Provisions).
	 	 
	Method of Adjustment:	Calculation Agent Adjustment, which means that, notwithstanding Section 11.2(c) of the Equity Definitions, upon any Potential Adjustment Event, the Calculation Agent shall make an adjustment corresponding to the adjustment to be made pursuant to the Indenture to any one or more of the Strike Price, the Number of Options, the Option Entitlement, the Relevant Price and/or other applicable price with respect to the Shares and the composition of the “Shares” hereunder.

 

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	 	Notwithstanding the foregoing and “Consequences of Merger Events / Tender Offers” below:

 

	 	(i) if the Calculation Agent in good faith disagrees with any adjustment to the Convertible Notes that involves an exercise of discretion by Counterparty or its board of directors (including, without limitation, pursuant to Section 4.06 of the Indenture, Section 4.07(a) of the Indenture or any supplemental indenture entered into thereunder or in connection with any proportional adjustment or the determination of the fair value of any securities, property, rights or other assets), then in each such case, the Calculation Agent will determine the adjustment to be made to any one or more of the Strike Price, the Number of Options, the Option Entitlement, the Relevant Price and/or other applicable price with respect to the Shares and the composition of the “Shares” hereunder in a commercially reasonable manner, after using good faith efforts to consult with Counterparty to the extent permitted by applicable law; provided, that, notwithstanding the foregoing, if any Potential Adjustment Event occurs during the Settlement Averaging Period but no adjustment was made to any Convertible Note under the Indenture because the relevant Holder (as such term is defined in the Indenture) was deemed to be a record owner of the underlying Shares on the related Conversion Date, then the Calculation Agent shall make an adjustment, as determined by it in a commercially reasonable manner, after using good faith efforts to consult with Counterparty to the extent permitted by applicable law, to the terms hereof in order to account for such Potential Adjustment Event;
	 	 
	 	(ii) in connection with any Potential Adjustment Event as a result of an event or condition set forth in Section 4.05(b) of the Indenture or Section 4.05(c) of the Indenture where, in either case, the period for determining “Y” (as such term is used in Section 4.05(b) of the Indenture) or “SP0” (as such term is used in Section 4.05(c) of the Indenture), as the case may be, begins before Counterparty has publicly announced the event or condition giving rise to such Potential Adjustment Event, then the Calculation Agent shall have the right to adjust any variable relevant to the exercise, settlement or payment for the Transaction as appropriate to reflect reasonable costs and losses (to account solely for hedging mismatches and market losses, assuming that Dealer maintains commercially reasonable hedge positions) and expenses that would be incurred by Dealer (documented subject to the requirements of the second paragraph under “Calculation Agent” below, as applicable) assuming that Dealer maintains commercially reasonable hedge positions, as a result of such event or condition not having been publicly announced prior to the beginning of such period, as determined by it in a commercially reasonable manner, after using good faith efforts to consult with Counterparty to the extent permitted by applicable law; and

 

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	 	(iii) if any Potential Adjustment Event is declared and (a) the event or condition giving rise to such Potential Adjustment Event is subsequently amended, modified, cancelled or abandoned, (b) the “Conversion Rate” (as defined in the Indenture) is otherwise not adjusted at the time or in the manner contemplated by the relevant Dilution Adjustment Provision based on such declaration or (c) the “Conversion Rate” (as defined in the Indenture) is adjusted as a result of such Potential Adjustment Event and subsequently re-adjusted (each of clauses (a), (b) and (c), a “Potential Adjustment Event Change”) then, in each case, the Calculation Agent shall have the right to adjust, in a commercially reasonable manner, after using good faith efforts to consult with Counterparty to the extent permitted by applicable law, any variable relevant to the exercise, settlement or payment for the Transaction as appropriate to reflect the reasonable costs and losses (to account solely for hedging mismatches and market losses, assuming that Dealer maintains commercially reasonable hedge positions) and expenses that would be incurred by Dealer (documented subject to the requirements of the second paragraph under “Calculation Agent” below, as applicable) assuming that Dealer maintains commercially reasonable hedge positions, as a result of such Potential Adjustment Event Change.

 

	 	For the avoidance of doubt, whenever the Calculation Agent or the Hedging Party is called upon to make an adjustment pursuant to the terms of this Transaction to take into account the effect of an event, the Calculation Agent or the Hedging Party, as applicable, shall make such adjustment by reference to the effect of such event on the Hedging Party, assuming that the Hedging Party maintains a commercially reasonable hedge position.
	 	 
	Dilution Adjustment Provisions:	Sections 4.05(a), (b), (c), (d) and (e) and Section 4.06 of the Indenture.

 

Extraordinary Events applicable
to the Transaction:

 

	Merger Events:	Applicable; provided that notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition set forth in the definition of “Merger Event” in Section 4.07(a) of the Indenture.
	 	 
	Tender Offers:	Applicable; provided that notwithstanding Section 12.1(d) of the Equity Definitions, a “Tender Offer” means the occurrence of any event or condition set forth in Section 4.05(e) of the Indenture.

 

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	Consequences of Merger Events / Tender Offers:	Notwithstanding Section 12.2 and Section 12.3 of the Equity Definitions, upon the occurrence of a Merger Event or a Tender Offer that is required under the terms of the Indenture to result in an adjustment to the terms of the Convertible Notes, the Calculation Agent shall make an adjustment corresponding to the adjustment to be made pursuant to the Indenture to any one or more of the nature of the Shares (in the case of a Merger Event), Strike Price, Number of Options, Option Entitlement, the definitions of “Exchange”, “Relevant Price”, “Settlement Averaging Period”, “Valid Day”, “Scheduled Valid Day”, “Market Disruption Event”, and/or the number of Share thresholds in Section 9(b)(i) and 9(b)(ii) of this Confirmation, subject to the second paragraph under “Method of Adjustment”; provided, however, that such adjustment shall be made without regard to any adjustment to the Conversion Rate pursuant to any Excluded Provision; provided further that if, with respect to a Merger Event or a Tender Offer, (i) the consideration for the Shares includes (or, at the option of a holder of Shares, may include) shares of an entity or person that is not a corporation or is not organized under the laws of the United States, any State thereof or the District of Columbia or (ii) the Counterparty to the Transaction following such Merger Event or Tender Offer will not be a corporation organized under the laws of the United States, any State thereof or the District of Columbia, then, in either case, Cancellation and Payment (Calculation Agent Determination) may apply at Dealer’s sole election; provided further that, for the avoidance of doubt, adjustments shall be made pursuant to the provisions set forth above regardless of whether any Merger Event or Tender Offer gives rise to an Early Conversion.
	 	 
	Consequences of Announcement Events:	Modified Calculation Agent Adjustment as set forth in Section 12.3(d) of the Equity Definitions; provided that, in respect of an Announcement Event, (x) references to “Tender Offer” shall be replaced by references to “Announcement Event” and references to “Tender Offer Date” shall be replaced by references to “date of such Announcement Event”, (y) the phrase “exercise, settlement, payment or any other terms of the Transaction (including, without limitation, the spread)” shall be replaced with the phrase “Cap Price (provided that in no event shall the Cap Price be less than the Strike Price)” and the words “whether within a commercially reasonable (as determined by the Calculation Agent) period of time prior to or after the Announcement Event” shall be inserted prior to the word “which” in the seventh line, and (z) for the avoidance of doubt, the Calculation Agent shall, in good faith and in a commercially reasonable manner, determine whether the relevant Announcement Event has had a material economic effect (as determined by Calculation Agent) on the Transaction and if so, shall adjust the Cap Price accordingly, and may make the related adjustments on one or more occasions on or after the date of the Announcement Event up to, and including, the Expiration Date, any Early Termination Date and/or any other date of cancellation, it being understood that any adjustment in respect of an Announcement Event shall take into account any earlier adjustment relating to the same Announcement Event and shall not be duplicative with any other adjustment or cancellation valuation made pursuant to this Confirmation, the Equity Definitions or the Agreement; provided that in no event shall the Cap Price be less than the Strike Price.  An Announcement Event shall be an “Extraordinary Event” for purposes of the Equity Definitions, to which Article 12 of the Equity Definitions is applicable.

 

    	 	12	 

     

    

 

	Announcement Event:	(i) The public announcement by (A) Counterparty, any subsidiary of Counterparty, or any Valid Third-Party Entity of any transaction or event that the Calculation Agent determines is reasonably likely to be completed and that, if completed, would constitute a Merger Event or Tender Offer (it being understood and agreed that in determining whether such transaction or event is reasonably likely to be completed, the Calculation Agent may take into consideration the effect of the relevant announcement on the Shares and/or options relating to the Shares and, if any such effect is material, may deem such transaction or event to be reasonably likely to be completed), (B) Counterparty or any subsidiary thereof of any potential acquisition or disposal by Counterparty and/or its subsidiaries where the aggregate consideration exceeds 35% of the market capitalization of Counterparty as of the date of such announcement (a “Transformative Transaction”) or (C) Counterparty, any subsidiary of Counterparty or any Valid Third-Party Entity of the intention to enter into a Merger Event or Tender Offer or a Transformative Transaction, which, in the case of an announcement other than by Counterparty, the Calculation Agent determines is reasonably likely to occur (it being understood and agreed that in determining whether such transaction or event is reasonably likely to occur, the Calculation Agent may take into consideration the effect of the relevant announcement on the Shares and/or options relating to the Shares and, if any such effect is material, may deem such transaction or event to be reasonably likely to occur), (ii) the public announcement by Counterparty of an intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, a Merger Event or Tender Offer or a Transformative Transaction or (iii) any subsequent public announcement by any entity of a change to a transaction or intention that is the subject of an announcement of the type described in clause (i) or (ii) of this sentence (including, without limitation, a new announcement, whether or not by the same party, relating to such a transaction or intention or the announcement of a withdrawal from, or the abandonment or discontinuation of, such a transaction or intention), as determined by the Calculation Agent. For the avoidance of doubt, the occurrence of an Announcement Event with respect to any transaction or intention shall not preclude the occurrence of a later Announcement Event with respect to such transaction or intention. For purposes of this definition of “Announcement Event,” (1) “Merger Event” shall mean such term as defined under Section 12.1(b) of the Equity Definitions (but, for the avoidance of doubt, the remainder of the definition of “Merger Event” in Section 12.1(b) of the Equity Definitions following the definition of “Reverse Merger” therein shall be disregarded) and (2) “Tender Offer” shall mean such term as defined under Section 12.1(d) of the Equity Definitions; provided that Section 12.1(d) of the Equity Definitions is hereby amended by replacing “10%” with “20%” in the third line thereof.

 

    	 	13	 

     

    

 

	Valid Third-Party Entity:	In respect of any transaction, any third party that the Calculation Agent determines has a bona fide intent to enter into or consummate such transaction (it being understood and agreed that in determining whether such third party has such a bona fide intent, the Calculation Agent shall take into consideration the effect of the relevant announcement by such third party on the Shares and/or options relating to the Shares and, if such effect is material, may deem such third party to have a bona fide intent).
	 	 
	Nationalization, Insolvency or Delisting:	Cancellation and Payment (Calculation Agent Determination); provided that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors), such exchange or quotation system shall thereafter be deemed to be the Exchange.

 

Additional
Disruption Events:

 

	Change in Law:	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation,” (ii) replacing the word “Shares” with the phrase “Hedge Positions” in clause (X) thereof and (iii) inserting the parenthetical “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption, effectiveness or promulgation of new regulations authorized or mandated by existing statute)” at the end of clause (A) thereof.
	 	 
	Failure to Deliver:	Applicable

 

    	 	14	 

     

    

 

	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 language at the end of such Section:

 

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

 

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

 

	Increased Cost of Hedging:	Applicable
	 	 
	Hedging Party:	For all applicable Additional Disruption Events, Dealer; provided, however, that all calculations, adjustments, specifications, choices and determinations by Dealer acting in its capacity as the Hedging Party shall be made in good faith and in a commercially reasonable manner and assuming that Dealer maintains a commercially reasonable hedge position (it being understood that Hedging Party will be subject to the requirements of the second paragraph under “Calculation Agent” below).
	 	 
	Determining Party:	For all applicable Extraordinary Events, Dealer; provided, however, that all calculations, adjustments, specifications, choices and determinations by Dealer acting in its capacity as the Determining Party shall be made in good faith and in a commercially reasonable manner and assuming that Dealer maintains a commercially reasonable hedge position (it being understood that Determining Party will be subject to the requirements of the second paragraph under “Calculation Agent” below).
	 	 
	Non-Reliance:	Applicable
	 	 
	Agreements and Acknowledgments	 
	Regarding Hedging Activities:	Applicable
	 	 
	Additional Acknowledgments:	Applicable

 

    	 	15	 

     

    

 

	4.	Calculation Agent.	Dealer; provided, however, that 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 as set forth in the immediately following paragraph. 
	 	 	 
	 	 	In the case of any calculation, adjustment or determination by the Hedging Party, the Determining Party or the Calculation Agent, following any written request from Counterparty, the Hedging Party, the Determining Party or the Calculation Agent, as the case may be, shall promptly provide to Counterparty a written explanation describing in reasonable detail the basis for such calculation, adjustment or determination (including any quotation, market data or information from internal or external sources used in making such calculation, adjustment or determination, but without disclosing any proprietary models or other information that may be proprietary or confidential). If Counterparty promptly disputes such calculation, adjustment or determination in writing and provides reasonable detail as to the basis for such dispute, the Calculation Agent shall, to the extent permitted by applicable law, discuss the dispute with Counterparty in good faith, it being understood that notwithstanding such discussion, the Calculation Agent’s calculation, adjustment or determination shall apply to the Transaction and be binding on the parties provided that such calculation, adjustment or determination was made in good faith and in a commercially reasonable manner.

 

		5.	Account Details.

 

		(a)	Account for payments to Counterparty:

 

Account for delivery of Shares to Counterparty:

 

To be provided by Counterparty

 

		(b)	Account for payments to Dealer:

 

To be provided
by Dealer

 

Account for delivery
of Shares to Dealer:

To be provided
by Dealer

		6.	Offices.

 

		(a)	The Office of Counterparty for the Transaction is: Inapplicable,
Counterparty is not a Multibranch Party.

 

    	 	16	 

     

    

 

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

 

		7.	Notices.

 

		(a)	Address for notices or communications to Counterparty:

 

Ironwood Pharmaceuticals, Inc.

301 Binney Street

Cambridge, Massachusetts, 02142

Attention:              General Counsel

Telephone No.:     (617) 621-7722

Facsimile No.:       (617) 588-0623

 

With a copy to:

 

Ropes & Gray LLP

Attention: Isabel Dische, Esq. and Thomas Holden, Esq.

Telephone No: (212) 596-9000

Facsimile No: (212) 596-9090

Email: isabel.dische@ropesgray.com & thomas.holden@ropesgray.com

 

		(b)	Address for notices or communications to Dealer:

 

Credit Suisse
Capital LLC

c/o Credit Suisse
Securities (USA) LLC

Eleven Madison
Avenue

New York, NY
10010

Attention:             Tucker
Martin

Telephone:           (212)
325-9182

Facsimile:             (212)
743-3661

Email:                   tucker.martin@credit-suisse.com

 

With a copy to:

 

Credit Suisse
Securities (USA) LLC

1 Madison Avenue,
9th Floor

New York, New
York 10010

Attn: Senior
Legal Officer

Telephone: (212)
538-2616

Facsimile: (212)
325-8036

Email: stephen.gray@credit-suisse.com

 

For payments
and deliveries:

 

Facsimile No.:
(212) 325 8175

Telephone No.:
(212) 325 8678 / (212) 325 3213

 

For all other
communications:

 

Telephone: (212)
538-6040

Facsimile: (917)
326-8603

 

    	 	17	 

     

    

 

		8.	Representations and Warranties of Counterparty.

 

Each of the representations and
warranties of Counterparty set forth in Section 3 of the Purchase Agreement (the “Purchase Agreement”), dated
as of August 7, 2019, between Counterparty and J.P. Morgan Securities LLC, as Initial Purchaser (the “Initial Purchaser”),
are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein, except to the extent that such representations
and warranties, if not true or correct, would not have a material adverse effect on the power or ability of Counterparty to execute
and deliver this Confirmation or to perform its obligations hereunder. Counterparty hereby further represents and warrants to Dealer
on the date hereof and on and as of the Premium Payment Date that:

  

		(a)	Counterparty has all necessary corporate power and authority
to execute, deliver and perform its obligations in respect of the Transaction; such execution, delivery and performance have been
duly authorized by all necessary corporate action on Counterparty’s part; and this Confirmation has been duly and validly
executed and delivered by Counterparty and constitutes its valid and binding obligation, enforceable against Counterparty in accordance
with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in
a proceeding at law or in equity) and except that rights to indemnification and contribution hereunder may be limited by federal
or state securities laws or public policy relating thereto.

 

		(b)	Neither the execution and delivery of this Confirmation
nor the incurrence or performance of obligations of Counterparty hereunder will conflict with or result in a breach of the certificate
of incorporation or by-laws (or any equivalent documents) of Counterparty, or any applicable law or regulation, or any order,
writ, injunction or decree of any court or governmental authority or agency, or any agreement or instrument to which Counterparty
or any of its subsidiaries is a party or by which Counterparty or any of its subsidiaries is bound or to which Counterparty or
any of its subsidiaries is subject, or constitute a default under, or result in the creation of any lien under, any such agreement
or instrument.

 

		(c)	No consent, approval, authorization, or order of, or
filing with, any governmental agency or body or any court is required in connection with the execution, delivery or performance
by Counterparty of this Confirmation, except such as have been obtained or made and such as may be required under the Securities
Act of 1933, as amended (the “Securities Act”) or state securities laws.

 

		(d)	Counterparty is not and, after consummation of 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.

 

		(e)	Counterparty is an “eligible contract participant”
(as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible
contract participant under Section 1a(18)(C) of the Commodity Exchange Act).

 

		(f)	Each of it and its affiliates is not, on the date hereof,
in possession of any material non-public information with respect to Counterparty or the Shares.

 

		(g)	No state or local (including any non-U.S. jurisdiction’s)
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) as a result
of Dealer or its affiliates owning or holding (however defined) Shares.

 

		(h)	Counterparty (A) is capable of evaluating investment
risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities;
(B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless
it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least $50 million.

 

		9.	Other Provisions.

 

		(a)	[Reserved].

 

    	 	18	 

     

    

 

		(b)	Repurchase Notices. Counterparty shall,
on any day on which Counterparty effects any repurchase of Shares, promptly give Dealer a written notice of such repurchase (a
“Repurchase Notice”) on such day if following such repurchase, the number of outstanding Shares as determined
on such day is (i) less than 152,992,485 (in the case of the first such notice) or (ii) thereafter more than 3,282,663 less than
the number of Shares included in the immediately preceding Repurchase Notice. Counterparty agrees to indemnify and hold harmless
Dealer and its affiliates and their respective officers, directors, employees, affiliates, advisors, agents and controlling persons
(each, an “Indemnified Person”) from and against any and all losses (including losses relating to Dealer’s
hedging activities as a consequence of becoming, or of the risk of becoming, a Section 16 “insider”, including without
limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith
with respect to the Transaction), claims, damages, judgments, liabilities and reasonable expenses (including reasonable attorney’s
fees), joint or several, which an Indemnified Person may become subject to, as a result of Counterparty’s failure to provide
Dealer with a Repurchase Notice on the day and in the manner specified in this paragraph, and to reimburse, within 30 days, upon
written request, each of such Indemnified Persons for any reasonable legal or other expenses incurred in connection with investigating,
preparing for, providing testimony or other evidence in connection with or defending any of the foregoing. If any suit, action,
proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the
Indemnified Person as a result of Counterparty’s failure to provide Dealer with a Repurchase Notice in accordance with this
paragraph, such Indemnified Person shall promptly notify Counterparty in writing, and Counterparty, upon request of the Indemnified
Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others
Counterparty may designate in such proceeding and shall pay the commercially reasonable fees and expenses of such counsel related
to such proceeding. Counterparty shall not be liable for any settlement of any proceeding contemplated by this paragraph that
is effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Counterparty
agrees to indemnify any Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Counterparty
shall not, without the prior written consent of the Indemnified Person (such consent not to be unreasonably withheld, conditioned
or delayed), effect any settlement of any pending or threatened proceeding contemplated by this paragraph that is in respect of
which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified
Person, unless such settlement includes an unconditional release of such Indemnified Person from all liability on claims that
are the subject matter of such proceeding on terms reasonably satisfactory to such Indemnified Person. If the indemnification
provided for in this paragraph is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages
or liabilities referred to therein, then Counterparty hereunder, in lieu of indemnifying such Indemnified Person thereunder, shall
contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities.
The remedies provided for in this paragraph ‎(b) are not exclusive and shall not limit any rights or remedies which may otherwise
be available to any Indemnified Person at law or in equity. The indemnity and contribution agreements contained in this paragraph
shall remain operative and in full force and effect regardless of the termination of the Transaction.

 

		(c)	Regulation M. Counterparty is not on the
Trade Date engaged in a distribution, as such term is used in Regulation M under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), of any securities of Counterparty, other than a distribution meeting the requirements
of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation M. Counterparty shall not, until the second Scheduled
Trading Day immediately following the Effective Date, engage in any such distribution.

 

		(d)	No Manipulation. Counterparty is not entering
into the Transaction to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable
for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable
for the Shares) or otherwise in violation of the Exchange Act.

 

    	 	19	 

     

    

 

		(e)	Transfer or Assignment.

 

		(i)	Counterparty shall have the right to transfer or assign
its rights and obligations hereunder with respect to all, but not less than all, of the Options hereunder (such Options, the “Transfer
Options”); provided that such transfer or assignment shall be subject to reasonable conditions that Dealer may
impose, including but not limited, to the following conditions:

 

		(A)	With respect to any Transfer Options, Counterparty shall
not be released from its notice and indemnification obligations pursuant to Section ‎9(b) or any obligations under Section
‎9(o) or ‎9(t) of this Confirmation;

 

		(B)	Any Transfer Options shall only be transferred or assigned
to a third party that is a United States person (as defined in the Internal Revenue Code of 1986, as amended (the “Code”));

 

		(C)	Such transfer or assignment shall be effected on terms,
including any reasonable undertakings by such third party (including, but not limited to, an undertaking with respect to compliance
with applicable securities laws in a manner that, in the reasonable judgment of Dealer, will not expose Dealer to material risks
under applicable securities laws) and execution of any documentation and delivery of legal opinions with respect to securities
laws and other matters by such third party and Counterparty, as are requested and reasonably satisfactory to Dealer;

 

		(D)	Dealer will not, as a result of such transfer and assignment,
be required to pay the transferee on any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount
that Dealer would have been required to pay to Counterparty in the absence of such transfer and assignment;

 

		(E)	An Event of Default, Potential Event of Default or Termination
Event will not occur as a result of such transfer and assignment;

 

		(F)	Without limiting the generality of clause (B), Counterparty
shall cause the transferee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested
by Dealer to permit Dealer to determine that results described in clauses (D) and (E) will not occur upon or after such transfer
and assignment; and

 

		(G)	Counterparty shall be responsible for all reasonable
costs and expenses, including reasonable counsel fees, incurred by Dealer in connection with such transfer or assignment.

 

    	 	20	 

     

    

 

		(ii)	Dealer may, without Counterparty’s consent, transfer
or assign all or any part of its rights or obligations under the Transaction (A) to any affiliate of Dealer (1) that has a rating
for its long term, unsecured and unsubordinated indebtedness that is equal to or better than Dealer’s credit rating at the
time of such transfer or assignment, or (2) whose obligations hereunder will be guaranteed, pursuant to the terms of a customary
guarantee in a form used by Dealer generally for similar transactions, by Dealer or Dealer’s ultimate parent entity, or
(B) to any other third party with a rating for its long term, unsecured and unsubordinated indebtedness equal to or better than
the lesser of (1) the credit rating of Dealer at the time of the transfer and (2) A- by Standard and Poor’s Rating Group,
Inc. or its successor (“S&P”), or A3 by Moody’s Investor Service, Inc. (“Moody’s”)
or, if either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or better by a substitute rating
agency mutually agreed by Counterparty and Dealer. If at any time at which (A) the Section 16 Percentage exceeds 7.5%, (B) the
Option Equity Percentage exceeds 14.5%, or (C) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such
condition described in clauses (A), (B) or (C), an “Excess Ownership Position”), Dealer is unable after using
its good faith and commercially reasonable efforts to effect a transfer or assignment of Options to a third party on pricing terms
reasonably acceptable to Dealer and within a time period reasonably acceptable to Dealer such that no Excess Ownership Position
exists, then Dealer may designate any Exchange Business Day as an Early Termination Date with respect to a portion of the Transaction
(the “Terminated Portion”), such that following such partial termination no Excess Ownership Position exists.
In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment shall
be made pursuant to Section 6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction
having terms identical to the Transaction and a Number of Options equal to the number of Options underlying the Terminated Portion,
(2) Counterparty were the sole Affected Party with respect to such partial termination and (3) the Terminated Portion were the
sole Affected Transaction (and, for the avoidance of doubt, the provisions of Section ‎9(m) shall apply to any amount that
is payable by Dealer to Counterparty pursuant to this sentence as if Counterparty was not the Affected Party). The “Section
16 Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares
that Dealer and 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 any “group” (within the meaning of Section 13 of the
Exchange Act) of which Dealer is or may be deemed to be a part beneficially owns (within the meaning of Section 13 of the Exchange
Act), without duplication, on such day (or, to the extent that for any reason the equivalent calculation under Section 16 of the
Exchange Act and the rules and regulations thereunder results in a higher number, such higher number) and (B) the denominator
of which is the number of Shares outstanding. The “Option Equity Percentage” as of any day is the fraction, expressed
as a percentage, (A) the numerator of which is the sum of (1) the product of the Number of Options and the Option Entitlement
and (2) the aggregate number of Shares underlying any other call option transaction sold by Dealer to Counterparty, and (B) the
denominator of which is the number of Shares outstanding. The “Share Amount” as of any day is the number of Shares
that Dealer and any person whose ownership position would be aggregated with that of Dealer (Dealer or any such person, a “Dealer
Person”) under any law, rule, regulation, regulatory order or organizational documents or contracts of Counterparty
that are, in each case, applicable to ownership of Shares (“Applicable Restrictions”), owns, beneficially owns,
constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership under any Applicable
Restriction, as determined by Dealer in good faith and in its reasonable discretion. The “Applicable Share Limit”
means a number of Shares equal to (A) the minimum number of Shares that could give rise to reporting or registration obligations
or other requirements (including obtaining prior approval from any person or entity) of a Dealer Person, or could result in an
adverse effect on a Dealer Person, under any Applicable Restriction, as determined by Dealer in good faith and in its reasonable
discretion, minus (B) 1% of the number of Shares outstanding.

 

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

 

    	 	21	 

     

    

 

		(f)	Staggered Settlement. If upon advice of
counsel with respect to applicable legal and regulatory requirements, including any requirements relating to Dealer’s hedging
activities hereunder, Dealer reasonably determines that it would not be practicable or advisable to deliver, or to acquire Shares
to deliver, any or all of the Shares to be delivered by Dealer on any Settlement Date for the Transaction, Dealer may, by notice
to Counterparty on or prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares
on two or more dates (each, a “Staggered Settlement Date”) as follows:

  

		(i)	in such notice, Dealer will specify to Counterparty the
related Staggered Settlement Dates (each of which shall be on or prior to such Nominal Settlement Date) and the number of Shares
that it will deliver on each Staggered Settlement Date;

 

		(ii)	the aggregate number of Shares that Dealer will deliver
to Counterparty hereunder on all such Staggered Settlement Dates will equal the number of Shares that Dealer would otherwise be
required to deliver on such Nominal Settlement Date; and

 

		(iii)	if the Net Share Settlement terms or the Combination
Settlement terms set forth above were to apply on the Nominal Settlement Date, then the Net Share Settlement terms or the Combination
Settlement terms, as the case may be, will apply on each Staggered Settlement Date, except that the number of Shares otherwise
deliverable on such Nominal Settlement Date will be allocated among such Staggered Settlement Dates as specified by Dealer in
the notice referred to in clause (i) above.

 

		(g)	Role of Agent. As a broker-dealer registered
with the U.S. Securities and Exchange Commission (“SEC”), Credit Suisse Securities (USA) LLC in its capacity
as Agent will be responsible for (i) effecting the Transaction, (ii) issuing all required confirmations and statements to Dealer
and Counterparty, (iii) maintaining books and records relating to the Transaction as required by Rules 17a-3 and 17a-4 under the
Exchange Act and (iv) unless otherwise requested by Counterparty, receiving, delivering, and safeguarding Counterparty’s
funds and any securities in connection with each Transaction, in compliance with Rule 15c3-3 under the Exchange Act.

 

Credit Suisse
Securities (USA) LLC is acting in connection with the Transaction solely in its capacity as Agent for Dealer and Counterparty pursuant
to instructions from Dealer and Counterparty. Credit Suisse Securities (USA) LLC shall have no responsibility or personal liability
to Dealer or Counterparty arising from any failure by Dealer or Counterparty to pay or perform any obligations hereunder, or to
monitor or enforce compliance by Dealer or Counterparty with any obligation hereunder, including without limitation, any obligations
to maintain collateral. Each of Dealer and Counterparty agrees to proceed solely against the other to collect or recover any securities
or monies owing to it in connection with or as a result of the Transaction. Credit Suisse Securities (USA) LLC shall otherwise
have no liability in respect of the Transaction, except for its gross negligence or willful misconduct in performing its duties
as Agent.

 

Any and all notices,
demands, or communications of any kind relating to this Transaction between Dealer and Counterparty shall be transmitted exclusively
through Agent at the following address:

 

Credit Suisse
Capital LLC

c/o Credit Suisse
Securities (USA) LLC

Eleven Madison
Avenue

New York, NY
10010

Attention:             Tucker
Martin

Telephone:           (212)
325-9182

Facsimile:              (212)
743-3661

Email:                    tucker.martin@credit-suisse.com

 

With a copy to:

 

Credit Suisse
Securities (USA) LLC

1 Madison Avenue,
9th Floor

New York, New
York 10010

Attn: Senior
Legal Officer

Telephone: (212)
538-2616

Facsimile: (212)
325-8036

Email: stephen.gray@credit-suisse.com

 

    	 	22	 

     

    

 

For payments
and deliveries:

 

Facsimile No.:
(212) 325 8175

Telephone No.:
(212) 325 8678 / (212) 325 3213

 

For all other
communications:

 

Telephone: (212)
538-6040

Facsimile: (917)
326-8603

 

The date and
time of the Transaction evidenced hereby will be furnished by the Agent to Dealer and Counterparty upon written request.

 

The Agent will
furnish to Counterparty upon written request a statement as to the source and amount of any remuneration received or to be received
by the Agent in connection with the Transaction evidenced hereby.

 

Dealer is not
a member of the SIPC (Securities Investor Protection Corporation).

 

Dealer represents
that it is an “OTC derivatives dealer” as such term is defined in the Exchange Act and is an affiliate of a broker-dealer
that is registered with and fully-regulated by the SEC, Credit Suisse Securities (USA) LLC.

 

		(h)	Additional Termination Events.

 

(i) Notwithstanding
anything to the contrary in this Confirmation if an event of default occurs under the terms of the Convertible Notes as set forth
in Section 7.01 of the Indenture, then such event of default shall constitute an Additional Termination Event applicable to the
Transaction and, with respect to such Additional Termination Event, (A) Counterparty shall be deemed to be the sole Affected Party,
(B) the Transaction shall be the sole Affected Transaction and (C) Dealer shall be the party entitled to designate an Early Termination
Date pursuant to Section 6(b) of the Agreement.

 

(ii) Notwithstanding
anything to the contrary in this Confirmation, the occurrence of an Amendment Event shall constitute an Additional Termination
Event applicable to the Transaction and, with respect to such Additional Termination Event, (A) Counterparty shall be deemed to
be the sole Affected Party, (B) the Transaction shall be the sole Affected Transaction and (C) Dealer shall be the party entitled
to designate an Early Termination Date pursuant to Section 6(b) of the Agreement. “Amendment Event” means that
Counterparty amends, modifies, supplements, waives or obtains a waiver in respect of any term of the Indenture or the Convertible
Notes governing the principal amount, coupon, maturity, repurchase obligation of Counterparty, any term relating to conversion
of the Convertible Notes (including changes to the conversion rate, conversion rate adjustment provisions, conversion settlement
dates or conversion conditions), or any term that would require consent of the holders of not less than 100% of the principal amount
of the Convertible Notes to amend (other than, in each case, any amendment or supplement (v) pursuant to Section 10.01(c) of the
Indenture, (w) pursuant to Section 10.01(h) of the Indenture that, as determined by the Calculation Agent, conforms the Indenture
to the description of Convertible Notes in the Offering Memorandum, (x) pursuant to Section 4.07 of the Indenture, (y) pursuant
to Section 10.01(i) of the Indenture, or (z) pursuant to Section 10.01(a) of the Indenture that, as determined by Calculation Agent,
cures any ambiguity, defect or inconsistency in the Indenture or in the Convertible Notes in a manner that does not adversely affect
any Holder in any material respect), in each case, without the consent of Dealer.

 

    	 	23	 

     

    

 

(iii) In addition,
notwithstanding anything to the contrary in this Confirmation:

 

(A) Promptly following any Repayment
Event (as defined below) (but, in any event, within 5 Scheduled Valid Days following settlement thereof), Counterparty may notify
Dealer of such Repayment Event and the aggregate principal amount of Convertible Notes subject to such Repayment Event (the “Repayment
Convertible Notes”) (any such notice, a “Repayment Notice”); provided that any such Repayment
Notice shall contain a repetition by Counterparty of the representation and warranty set forth in Section 8(f) hereunder as of
the date of such Repayment Notice; and provided further that any “Repayment Notice” delivered to Dealer pursuant
to the letter agreement dated as of August 7, 2019 entered into in connection with the Base Call Option Confirmation shall deemed
to be a Repayment Notice pursuant to this letter agreement and the terms of such Repayment Notice shall apply, mutatis mutandis,
to this letter agreement. The receipt by Dealer from Counterparty of any Repayment Notice shall constitute an Additional Termination
Event as provided in this Section 9(h).

 

(B) Upon receipt of any such Repayment
Notice, Dealer shall designate an Exchange Business Day following receipt of such Repayment Notice (which Exchange Business Day
shall be on or as promptly as reasonably practicable after the related settlement date for the relevant Repayment Event) as an
Early Termination Date with respect to a portion (the “Repayment Terminated Portion”) of the Transaction
consisting of a number of Options (the “Repayment Options”) equal to the lesser of (A) the number of Repayment
Convertible Notes in denominations of USD1,000 that are subject to the relevant Repayment Event (and for the purposes of determining
whether any Convertible Notes will be Repayment Convertible Notes hereunder or under, and as defined in, the Base Call Option Confirmation,
Convertible Notes that are subject to a Repayment Event shall be allocated first to the Base Call Option Confirmation until all
Options thereunder are exercised or terminated) and (B) the Number of Options as of the date Dealer designates such Early Termination
Date (prior to giving effect to a reduction thereto on such date pursuant to the immediately following sentence). As of any such
Early Termination Date, the Number of Options shall be reduced by the applicable number of Repayment Options.

 

(C)         Any
payment or delivery in respect of such termination of the Repayment Terminated Portion of the Transaction shall be made pursuant
to Section 6 of the Agreement as if an Early Termination Date had been designated in respect of a Transaction having terms identical
to the Transaction and a Number of Options equal to the number of Repayment Options.  Counterparty shall be the sole Affected
Party with respect to such Additional Termination Event and the Repayment Terminated Portion of the Transaction shall be the sole
Affected Transaction. “Repayment Event” means that (i) any Convertible Notes are repurchased by Counterparty
or any of its subsidiaries, (ii) any Convertible Notes are delivered to Counterparty in exchange for delivery of any property or
assets of Counterparty or any of its subsidiaries (howsoever described), (iii) any principal of any of the Convertible Notes is
repaid prior to the final maturity date of the Convertible Notes (other than upon an event of default under the Convertible Notes
described in the first paragraph of this Section 9(h)), or (iv) any Convertible Notes are exchanged by or for the benefit of the
Holders (as defined in the Indenture) thereof for any other securities of Counterparty or any of its Affiliates (as defined in
the Indenture) (or any other property, or any combination thereof) pursuant to any exchange offer or similar transaction; provided
that (x) no conversion of Convertible Notes pursuant to the terms of the Indenture shall constitute a Repayment Event and (y) no
surrender of a Convertible Note for repurchase in respect of which Counterparty has elected to designate a financial institution
for exchange in lieu of repurchase pursuant to Section 4.11 of the Indenture shall constitute a Repayment Event.  Counterparty
acknowledges its responsibilities under applicable securities laws, and in particular Section 9 and Section 10(b) of the Exchange
Act and the rules and regulations thereunder, in respect of any action taken by Counterparty or any of its Affiliates (as defined
in the Indenture) in respect of a Repayment Event, including, without limitation, the delivery of a Repayment Notice.

 

    	 	24	 

     

    

 

(D)         Counterparty
acknowledges and agrees that if an Additional Termination Event has occurred under this Section 9(h)(iii) that any related Convertible
Notes subject to a Repayment Event will be deemed to be cancelled and disregarded an no longer outstanding for all purposes hereunder.

 

(iv) Notwithstanding
anything to the contrary in this Confirmation, upon any Early Conversion in respect of which a Notice of Conversion that is effective
as to Counterparty has been delivered by the relevant converting Holder:

 

(A)         Counterparty
shall, as promptly as practicable (but in any event within five Scheduled Trading Days of the “Conversion Date”
(as defined in the Indenture) for such Early Conversion), provide written
notice (an “Early Conversion Notice”) to Dealer specifying the number of Convertible Notes surrendered for conversion
on such Conversion Date (such Convertible Notes, the “Affected Convertible Notes”),
and the giving of such Early Conversion Notice shall constitute an Additional Termination Event as provided in this clause
(iv);

 

(B)         upon
receipt of any such Early Conversion Notice, Dealer shall designate an Exchange Business Day as an Early Termination Date (which
Exchange Business Day shall be no earlier than one Scheduled Trading Day following the Conversion Date for such Early Conversion)
with respect to the portion of the Transaction corresponding to a number of Options (the “Affected Number of Options”)
equal to the lesser of (x) the number of Affected Convertible Notes minus the “Affected Number of Options” (as
defined in the Base Call Option Confirmation), if any, that relate to such Affected Convertible Notes and (y) the Number of Options
as of the Conversion Date for such Early Conversion;

 

(C)         any
payment hereunder with respect to such termination shall be calculated pursuant to Section 6 of the Agreement as if (x) an Early
Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Options
equal to the Affected Number of Options, (y) Counterparty were the sole Affected Party with respect to such Additional Termination
Event and (z) the terminated portion of the Transaction were the sole Affected Transaction; provided that the amount payable
with respect to such termination shall not be greater than (1) the Applicable Percentage, multiplied by (2) the Affected
Number of Options, multiplied by (3) (x) the sum of (i) the amount of cash paid (if any) to the Holder (as such term is
defined in the Indenture) of an Affected Convertible Note upon conversion thereof and (ii) the number of Shares delivered (if any)
to the Holder (as such term is defined in the Indenture) of an Affected Convertible Note upon conversion of such Affected Convertible
Note, multiplied by the Applicable Limit Price on the settlement date for the cash to be paid and/or the Shares to be delivered
to the Holders (as defined in the Indenture) of such Affected Convertible Note, minus (y) USD 1,000;

 

(D)
       for the avoidance of doubt, in determining the amount payable in respect of such Affected
Transaction pursuant to Section 6 of the Agreement, the Calculation Agent shall assume that (x) the relevant Early Conversion and
any conversions, adjustments, agreements, payments, deliveries or acquisitions by or on behalf of Counterparty leading thereto
had not occurred, (y) no adjustments to the Conversion Rate have occurred pursuant to any Excluded Provision and (z) the corresponding
Convertible Notes remain outstanding; and

 

    	 	25	 

     

    

 

(E)         the
Transaction shall remain in full force and effect, except that, as of the Conversion Date for such Early Conversion, the Number
of Options shall be reduced by the Affected Number of Options.

 

		(i)	Amendments to the Equity Definitions.

 

		(i)	Section 12.6(a)(ii) of the Equity Definitions is hereby
amended by (1) deleting from the fourth line thereof the word “or” after the word “official” and inserting
a comma therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting the following words therefor
“or (C) at Dealer’s option, the occurrence of any of the events specified in Section 5(a)(vii)(1) through (9) of the
ISDA Master Agreement with respect to that Issuer.”

 

		(ii)	Section 12.9(b)(i) of the Equity Definitions is hereby
amended by (1) replacing “either party may elect” with “Dealer may elect” and (2) replacing “notice
to the other party” with “notice to Counterparty” in the first sentence of such section.

 

		(iii)	Section 11.2(e)(vii) of the Equity Definitions is hereby
amended by deleting the words “that may have a diluting or concentrative effect on the theoretical value of the relevant
Shares” and replacing them with the words “that is the result of a corporate event involving the Issuer or its securities
that has a material economic effect on the Shares and/or options on the Shares; provided that such event is not based on
(a) an observable market, other than the market for the Issuer’s own stock or (b) an observable index, other than an index
calculated and measured solely by reference to Issuer’s own operations”.

 

		(iv)	Section 12.9(b)(vi) of the Equity Definitions is hereby
amended by (1) adding the word “or” immediately before subsection “(B)”, (2) deleting the comma at the
end of subsection (A), (3) deleting subsection (C) in its entirety, (4) deleting the word “or” immediately preceding
subsection (C) and (5) replacing the words “either party” in the last sentence of such Section with “Dealer”.

 

		(j)	Setoff. Obligations under the Transaction
shall not be set off by either party against any other obligations of the parties, whether arising under the Agreement, this Confirmation,
under any other agreement between the parties hereto, by operation of law or otherwise. For the avoidance of doubt, 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.

 

		(k)	Alternative Calculations and Payment on Early Termination
and on Certain Extraordinary Events. If in respect of the Transaction, an amount is payable by Dealer to Counterparty
(i) pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or (ii) pursuant to Section 6(d)(ii) of the Agreement (any
such amount, a “Payment Obligation”), then Dealer shall satisfy the Payment Obligation by the Share Termination
Alternative (as defined below), unless (a) Counterparty gives irrevocable telephonic notice to Dealer, confirmed in writing
within one Scheduled Trading Day, no later than 12:00 p.m. (New York City time) on the Merger Date, Tender Offer Date, Announcement
Date (in the case of a Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable,
of its election that the Share Termination Alternative shall not apply, (b) Counterparty remakes the representation set forth
in Section ‎8(f) as of the date of such election and (c) Dealer agrees, in good faith and in its reasonable discretion, to
such election, in which case the provisions of Section 12.7 or Section 12.9 of the Equity Definitions, or the provisions of Section
6(d)(ii) of the Agreement, as the case may be, shall apply.

 

	Share Termination Alternative:	If applicable, Dealer shall deliver to Counterparty the Share Termination Delivery Property on, or within a commercially reasonable period of time after, the date when the relevant Payment Obligation would otherwise be due pursuant to Section 12.7 or 12.9 of the Equity Definitions or Section 6(d)(ii) and 6(e) of the Agreement, as applicable, in satisfaction of such Payment Obligation in the manner reasonably requested by Counterparty free of payment.

 

    	 	26	 

     

    

 

	Share Termination Delivery Property:	A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price.  The Calculation Agent shall adjust the Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price.
	 	 
	Share Termination Unit Price:	The value of property contained in one Share Termination Delivery Unit, as determined by the Calculation Agent in its discretion by commercially reasonable means and notified by the Calculation Agent to Dealer at the time of notification of the Payment Obligation. For the avoidance of doubt, the parties agree that in determining the Share Termination Delivery Unit Price the Calculation Agent may consider, if commercially reasonable, the purchase price paid in connection with the purchase of Share Termination Delivery Property.
	 	 
	Share Termination Delivery Unit:	One Share or, if the Shares have changed into cash or any other property or the right to receive cash or any other property as the result of a Nationalization, Insolvency or Merger Event (any such cash or other property, the “Exchange Property”), a unit consisting of the type and amount of such Exchange 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 Nationalization, Insolvency or Merger Event, as determined by the Calculation Agent.
	 	 
	Failure to Deliver:	Applicable
	 	 
	Other applicable provisions:	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9 and 9.11 (as modified above) of the Equity Definitions and the provisions set forth opposite the caption “Representation and Agreement” in Section ‎2 will be applicable, except that all references in such provisions to “Physically-settled” shall be read as references to “Share Termination Settled” and all references to “Shares” shall be read as references to “Share Termination Delivery Units”.  “Share Termination Settled” in relation to the Transaction means that the Share Termination Alternative is applicable to the Transaction.

 

    	 	27	 

     

    

 

		(l)	Waiver of Jury Trial. Each party waives,
to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to the Transaction. Each party (i) certifies that no representative, agent or attorney of either party has
represented, expressly or otherwise, that such other party would not, in the event of such a suit, action or proceeding, seek
to enforce the foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into the Transaction,
as applicable, by, among other things, the mutual waivers and certifications provided herein.

 

		(m)	Registration. Counterparty hereby agrees
that if, in the good faith reasonable judgment of Dealer based on the advice of counsel, the Shares (“Hedge Shares”)
acquired by Dealer for the purpose of hedging its obligations pursuant to the Transaction cannot be sold in the public market
by Dealer without registration under the Securities Act, Counterparty shall, at its election, either (i) in order to allow Dealer
to sell the Hedge Shares in a registered offering, make available to Dealer an effective registration statement under the Securities
Act and enter into an agreement, in form and substance satisfactory to Dealer, substantially in the form of an underwriting agreement
for a registered secondary offering of similar size; provided, however, that if Dealer, in its sole reasonable discretion,
is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and
documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this paragraph shall apply at
the election of Counterparty, (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, enter into a private
placement agreement substantially similar to private placement purchase agreements customary for private placements of equity
securities of similar size, in form and substance satisfactory to Dealer (in which case, the Calculation Agent shall make any
adjustments to the terms of the Transaction that are necessary, in its commercially reasonable judgment, to compensate Dealer
for any discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement), or (iii)
purchase the Hedge Shares from Dealer at the Relevant Price on such Exchange Business Days, and in the amounts, requested by Dealer.

 

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

 

		(o)	Right to Extend. Dealer may postpone or
add, in whole or in part, any Valid Day or Valid Days during the Settlement Averaging Period or any other date of valuation, payment
or delivery by Dealer, with respect to some or all of the Options hereunder, if Dealer reasonably and in good faith determines,
based on the advice of counsel in the case of the immediately following clause (ii), that such action is reasonably necessary
or appropriate (i) to preserve Dealer’s commercially reasonable hedging or hedge unwind activity hereunder in light of existing
liquidity conditions or (ii) to enable Dealer to effect transactions with respect to Shares in connection with a commercially
reasonable 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 organization requirements, or with
related policies and procedures applicable to Dealer; provided that no such Valid Day or other date of valuation, payment
or delivery may be postponed or added more than 80 Valid Days after the original Valid Day or date of valuation, payment or delivery,
as the case may be.

 

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

 

    	 	28	 

     

    

 

		(q)	Securities Contract; Swap Agreement. The
parties hereto intend for (i) the Transaction to be a “securities contract” and a “swap agreement” as
defined in the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the parties
hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555
and 560 of the Bankruptcy Code, (ii) a party’s right to liquidate the Transaction and to exercise any other remedies upon
the occurrence of any Event of Default under the Agreement with respect to the other party to constitute a “contractual
right” as described in the Bankruptcy Code, and (iii) each payment and delivery of cash, securities or other property hereunder
to constitute a “margin payment” or “settlement payment” and a “transfer” as defined in the
Bankruptcy Code.

 

		(r)	Notice of Certain Other Events. Counterparty
covenants and agrees that:

 

		(i)	promptly following the public announcement of the results
of any election by the holders of Shares with respect to the consideration due upon consummation of any Merger Event, Counterparty
shall give Dealer written notice of (x) the weighted average of the types and amounts of consideration that holders of Shares
have elected to receive upon consummation of such Merger Event or (y) if no holders of Shares affirmatively make such election,
the types and amounts of consideration actually received by holders of the Shares (the date of such notification, the “Consideration
Notification Date”); provided that in no event shall the Consideration Notification Date be later than the date
on which such Merger Event is consummated; and

 

		(ii)	(A) Counterparty shall give Dealer commercially reasonable
advance (but in no event less than one Exchange Business Day) written notice of the section or sections of the Indenture and,
if applicable, the formula therein, pursuant to which any adjustment will be made to the Convertible Notes in connection with
any Potential Adjustment Event, Merger Event or Tender Offer and (B) promptly following any such adjustment, Counterparty shall
give Dealer written notice of the details of such adjustment.

 

		(s)	Wall Street Transparency and Accountability Act.
In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), the
parties hereby agree that neither the enactment of WSTAA or any regulation under the WSTAA, nor any requirement under WSTAA or
an amendment made by WSTAA, shall limit or otherwise impair either party’s otherwise applicable rights to terminate, renegotiate,
modify, amend or supplement this Confirmation or the Agreement, as applicable, arising from a termination event, force majeure,
illegality, increased costs, regulatory change or similar event under this Confirmation, the Equity Definitions incorporated herein,
or the Agreement (including, but not limited to, rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging,
an Excess Ownership Position, or Illegality (as defined in the Agreement)).

 

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

 

    	 	29	 

     

    

 

		(u)	Early Unwind. In the event the sale of
the “Option Securities” (as defined in the Purchase Agreement) is not consummated with the Initial Purchaser for any
reason by 5:00 p.m. (New York City time) on the Premium Payment Date, or such later date as agreed upon by the parties (the Premium
Payment Date or such later date, the “Early Unwind Date”), the Transaction shall automatically terminate (the
“Early Unwind”) on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations
of Dealer and Counterparty under the Transaction shall be cancelled and terminated and (ii) each party shall be released and discharged
by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities
of the other party arising out of and to be performed as Hedging Positions in respect of this Transaction either prior to or after
the Early Unwind Date. Each of Dealer and Counterparty represents and acknowledges to the other that, upon an Early Unwind, all
obligations with respect to the Transaction shall be deemed fully and finally discharged.

 

		(v)	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 arising under Section 5(a)(ii) or 5(a)(iv) of the
Agreement) and, as a result, Counterparty owes to Dealer an amount calculated under Section 6(e) of the Agreement, or (ii) Counterparty
owes to Dealer, pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount calculated under Section 12.8 of
the Equity Definitions, such amount shall be deemed to be zero.

 

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

 

		(x)	Tax Documentation and Representations.

 

		(i)	Tax documentation. Counterparty shall provide
to Dealer a valid U.S. Internal Revenue Service (“IRS”) Form W-9 on or before the date of execution of this
Confirmation and will promptly tender an updated IRS Form W-9 if the previously tendered IRS Form W-9 becomes incorrect as a result
of a change in facts. Dealer shall provide Counterparty a valid IRS Form W-9 or applicable IRS Form W-8 on or before the date
of execution of this Confirmation and will promptly tender an updated IRS Form W-9 or applicable IRS Form W-8 if the previously
tendered IRS Form W-9 or applicable IRS Form W-8 becomes incorrect as a result of a change in facts.

 

		(ii)	Tax Representations. For the purpose of Section
3(f) of the Agreement, Counterparty is a corporation for U.S. federal income tax purposes and is organized under the laws of the
State of Delaware. Counterparty is a “U.S. person” (as that term is used in section 1.1441-4(a)(3)(ii) of United States
Treasury Regulations) for U.S. federal income tax purposes and an exempt recipient under Treasury Regulation Section 1.6049-4(c)(1)(ii).

 

		(y)	Certain Withholding Taxes.

 

		(i)	Withholding Tax imposed on payments to non-US counterparties
under the United States Foreign Account Tax Compliance Act. “Indemnifiable Tax” as defined in Section 14 of the
Agreement shall not include any tax imposed or collected pursuant to Sections 1471 through 1474 of the Code, any current or future
regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal
or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with
the implementation of such Sections of the Code (a “FATCA Withholding Tax”). For the avoidance of doubt, a
FATCA Withholding Tax is a Tax the deduction or withholding of which is required by applicable law for the purposes of Section
2(d) of the Agreement.

 

    	 	30	 

     

    

 

		(ii)	Incorporation of ISDA 2015 Section 871(m) Protocol
Provisions. To the extent that either party to the Agreement with respect to this Transaction is not an adhering party to
the ISDA 2015 Section 871(m) Protocol published by the International Swaps and Derivatives Association, Inc. on November 2, 2015
and available at www.isda.org, as may be amended, supplemented, replaced or superseded from time to time (the “871(m)
Protocol”), the parties agree that the provisions and amendments contained in the Attachment to the 871(m) Protocol
are incorporated into and apply to the Agreement with respect to this Transaction as if set forth in full herein. The parties
further agree that, solely for purposes of applying such provisions and amendments to the Agreement with respect to this Transaction,
references to “each Covered Master Agreement” in the 871(m) Protocol will be deemed to be references to the Agreement
with respect to this Transaction, and references to the “Implementation Date” in the 871(m) Protocol will be deemed
to be references to the Trade Date of this Transaction.

 

		(z)	Other Adjustments Pursuant to the Equity Definitions.
Notwithstanding anything to the contrary in this Confirmation, solely for the purpose of adjusting the Cap Price, the terms “Potential
Adjustment Event,” “Merger Event,” and “Tender Offer” shall each have the meanings assigned to such
term in the Equity Definitions (as amended by Section 9(i)(iii)), and upon the occurrence of a Merger Date, the occurrence of
a Tender Offer Date, or declaration by Counterparty of the terms of any Potential Adjustment Event, the Calculation Agent shall
determine in good faith and in a commercially reasonable manner whether such occurrence or declaration, as applicable, has had
a material economic effect on the Transaction and, if so, shall, in its good faith and commercially reasonable discretion, adjust
the Cap Price to preserve the fair value of the Options; provided that in no event shall the Cap Price be less than the
Strike Price; provided further that any adjustment to the Cap Price made pursuant to this Section 9(z) shall be made without
duplication of any other adjustment hereunder.

 

		(aa)	U.S. Resolution Stay Protocol. To the extent
that the QFC Stay Rules are applicable hereto, then the parties agree that (i) to the extent that prior to the date hereof both
parties have adhered to the 2018 ISDA U.S. Resolution Stay Protocol (the “Protocol”), the terms of the Protocol
are incorporated into and form a part of this Confirmation, and for such purposes this Confirmation shall be deemed a Protocol
Covered Agreement and each party shall be deemed to have the same status as “Regulated Entity” and/or “Adhering
Party” as applicable to it under the Protocol; (ii) to the extent that prior to the date hereof the parties have executed
a separate agreement the effect of which is to amend the qualified financial contracts between them to conform with the requirements
of the QFC Stay Rules (the “Bilateral Agreement”), the terms of the Bilateral Agreement are incorporated into
and form a part of this Confirmation and each party shall be deemed to have the status of “Covered Entity” or “Counterparty
Entity” (or other similar term) as applicable to it under the Bilateral Agreement; or (iii) if clause (i) and clause (ii)
do not apply, the terms of Section 1 and Section 2 and the related defined terms (together, the “Bilateral Terms”)
of the form of bilateral template entitled “Full-Length Omnibus (for use between U.S. G-SIBs and Corporate Groups)”
published by ISDA on November 2, 2018 (currently available on the 2018 ISDA U.S. Resolution Stay Protocol page at www.isda.org
and, a copy of which is available upon request), the effect of which is to amend the qualified financial contracts between the
parties thereto to conform with the requirements of the QFC Stay Rules, are hereby incorporated into and form a part of this Confirmation,
and for such purposes this Confirmation shall be deemed a “Covered Agreement,” Dealer shall be deemed a “Covered
Entity” and Counterparty shall be deemed a “Counterparty Entity.” In the event that, after the date of this
Confirmation, both parties hereto become adhering parties to the Protocol, the terms of the Protocol will replace the terms of
this paragraph. In the event of any inconsistencies between this Confirmation and the terms of the Protocol, the Bilateral Agreement
or the Bilateral Terms (each, the “QFC Stay Terms”), as applicable, the QFC Stay Terms will govern. Terms used
in this paragraph without definition shall have the meanings assigned to them under the QFC Stay Rules. For purposes of this paragraph,
references to “this Confirmation” include any related credit enhancements entered into between the parties or provided
by one to the other. In addition, the parties agree that the terms of this paragraph shall be incorporated into any related covered
affiliate credit enhancements, with all references to Dealer replaced by references to the covered affiliate support provider.

 

“QFC
Stay Rules” means the regulations codified at 12 C.F.R. 252.2, 252.81–8, 12 C.F.R. 382.1-7 and 12 C.F.R. 47.1-8,
which, subject to limited exceptions, require an express recognition of the stay-and-transfer powers of the FDIC under the Federal
Deposit Insurance Act and the Orderly Liquidation Authority under Title II of the Dodd Frank Wall Street Reform and Consumer Protection
Act and the override of default rights related directly or indirectly to the entry of an affiliate into certain insolvency proceedings
and any restrictions on the transfer of any covered affiliate credit enhancements.

 

    	 	31	 

     

    

 

Please confirm
that the foregoing correctly sets forth the terms of our agreement by executing this Confirmation and returning it to Dealer

 

	 	Very truly yours,
	 	 
	 	Credit Suisse Capital LLC
	 	 
	 	By:	/s/ Steven J. Reis
	 	Authorized Signatory
	 	Name:	Steven J. Reis
	 	Title:	 
	 	 	 
	 	By:	/s/ Shui Wong
	 	Authorized Signatory
	 	Name:	Shui Wong
	 	Title:	 
	 	 	 
	 	Credit Suisse Securities (USA) LLC, as Agent
	 	 	 
	 	By:	/s/ Steven J. Reis
	 	Name:	Steven J. Reis
	 	Title:	Director

 

[Signature Page to Additional Capped Call
Confirmation]

 

     

     

    

 

	Accepted and confirmed as of the Trade Date:	 
	 	 
	Ironwood Pharmaceuticals, Inc.	 
	 	 	 
	By:	/s/ Gina Consylman	 
	Authorized Signatory	 
	Name: 	Gina Consylman	 
	 	SVP and CFO, Finance	 

 

[Signature Page to Additional Capped Call
Confirmation]Exhibit 10.9

 

 

 

JPMorgan Chase Bank, National Association

London Branch

25 Bank Street

Canary Wharf

London E14 5JP

England

 

	DATE:	August 7, 2019
	 	 
	TO:	
        Ironwood Pharmaceuticals, Inc.

        301 Binney Street

        Cambridge, MA 02142

        Attn: Chief Legal Officer

         

	FROM:	JPMorgan Chase Bank, National Association
	 	 
	SUBJECT:	Partial Terminations of Relevant Transactions Listed on Attached Schedule A and Related Amendments

 

The purpose of this communication (this “Confirmation”)
is to set forth the terms and conditions of the partial termination (the “Transaction”) of the rights and obligations
under and in respect of the following transactions (each such transaction, a “Relevant Transaction” and collectively
the “Relevant Transactions” and the terminated portion of each such Relevant Transaction, the “Terminated
Portion”) and to modify the Relevant Transactions as described herein: Base call option transaction confirmation, dated
as of June 10, 2015, by and between JPMorgan Chase Bank, National Association, London Branch and Ironwood Pharmaceuticals, Inc.
(“Counterparty”), (the “Call Options”); and the base warrant transaction confirmation, dated
as of June 10, 2015, by and between Dealer and Counterparty (the “Warrants”). The Terminated Portion of each
of the above Relevant Transactions shall be as set forth on Schedule A in the column labeled “Number of Options or Warrants,
As Applicable, of such Relevant Transaction Subject to Termination”. The Terminated Portion of each Relevant Transaction
shall be terminated as of the date that is one Settlement Cycle following the last day of the Unwind Period (the “Termination
Effective Date”).

 

1.                  
The definitions and provisions of the 2002 ISDA Equity Derivatives Definitions, as published by the International
Swaps and Derivatives Association, Inc. (“ISDA”) are incorporated into this Confirmation. Any capitalized term
not otherwise defined herein shall have the meaning set forth for such term in the confirmation for the relevant Call Options or
Warrants, as applicable.

 

2.                  
In consideration for the termination of the Terminated Portion of each Relevant Transaction, a “Termination
Payment” with respect to the Terminated Portion of each Relevant Transaction shall be made in the amount set forth in Section
5, such Termination Payments to be made as further specified in Section 4 below. Each of Dealer and Counterparty hereby agrees
that, upon receipt of the Termination Payments (as aggregated into a Net Termination Payment as provided in Section 3 below), with
respect to the Terminated Portion of each Relevant Transaction: (i) such Terminated Portion of the Relevant Transaction and all
of the respective rights and obligations of Dealer and Counterparty thereunder are cancelled and terminated as of the Termination
Effective Date; (ii) Dealer releases and discharges Counterparty from and agrees not to make any claim against Counterparty with
respect to any obligations of Counterparty arising out of, and to be performed in connection with, any Terminated Portion of a
Relevant Transaction after the Termination Effective Date, including, but not limited to, any rights or obligations said to survive
the termination of a Relevant Transaction in such Relevant Transaction’s confirmation in respect of the Terminated Portion
of such Relevant Transaction and; (iii) Counterparty releases and discharges Dealer from and agrees not to make any claim against
Dealer with respect to any obligations of Dealer arising out of, and to be performed in connection with, any Terminated Portion
of a Relevant Transaction after the Termination Effective Date, including, but not limited to, any rights or obligations said to
survive the termination of a Relevant Transaction in such Relevant Transaction’s confirmation in respect of the Terminated
Portion of such Relevant Transaction. Each of the parties hereby represents and acknowledges to the other that, upon receipt of
the Termination Payments (as aggregated into a Net Termination Payment as provided in Section 3 below), no further amounts are
owed by Dealer or Counterparty to any other party with respect to the Terminated Portion of each Relevant Transaction.

 

JPMorgan Chase Bank, National Association

Organised under the laws of the United States
as a National Banking Association.

Main Office 1111 Polaris Parkway, Columbus,
Ohio 43240

Registered as a branch in England &
Wales branch No. BR000746

Registered Branch Office 25 Bank Street,
Canary Wharf, London E14 5JP

Authorised by the Office of the Comptroller
of the Currency in the jurisdiction of the USA.

Authorised by the Prudential Regulation
Authority. Subject to regulation by the Financial Conduct

Authority and to limited regulation by the
Prudential Regulation Authority. Details about the

extent of our regulation by the Prudential
Regulation Authority are available from us on request.

  

     

     

    

 

3.                 
The parties hereby agree to net the Termination Payments with respect to the Terminated Portion of each of the Relevant
Transactions such that a single payment shall be made with respect to the Terminated Portion of each of the Relevant Transactions
(such net payment, the “Net Termination Payment”), such Net Termination Payment satisfying each party’s
obligations to make payments to the other. On the Termination Effective Date, Dealer shall deliver to Counterparty the Net Termination
Payment in accordance with the Ironwood Payment Instructions below.

 

4.                 
Ironwood Payment Instructions:

 

5.                 The
Termination Payment with respect to the Terminated Portion of each Relevant Transaction shall be equal to the amount determined
by referencing the VWAP Price for the Relevant Transaction as set forth in the table below.

  

	VWAP Price
 
 	 	 	Termination Payment in respect of the

 Terminated Portion of the Call Options	 	 	Termination Payment in respect of the

 Terminated Portion of the Warrants	 
	$	 	 	$	 	 	$	 
	9.00	 	 	$	11,201,801.31	 	 	$	10,016,425.51	 
	9.10	 	 	$	11,438,876.47	 	 	$	10,194,231.88	 
	9.20	 	 	$	11,735,220.42	 	 	$	10,431,307.04	 
	9.30	 	 	$	12,031,564.37	 	 	$	10,727,650.99	 
	9.40	 	 	$	12,327,908.32	 	 	$	10,964,726.15	 
	9.50	 	 	$	12,624,252.27	 	 	$	11,201,801.31	 
	9.60	 	 	$	12,920,596.22	 	 	$	11,498,145.26	 
	9.70	 	 	$	13,276,208.96	 	 	$	11,794,489.21	 
	9.80	 	 	$	13,572,552.91	 	 	$	12,031,564.37	 
	9.90	 	 	$	13,868,896.86	 	 	$	12,327,908.32	 
	10.00	 	 	$	14,165,240.81	 	 	$	12,564,983.48	 
	10.10	 	 	$	14,520,853.55	 	 	$	12,861,327.43	 
	10.20	 	 	$	14,817,197.50	 	 	$	13,098,402.59	 
	10.30	 	 	$	15,113,541.45	 	 	$	13,394,746.54	 
	10.40	 	 	$	15,469,154.19	 	 	$	13,691,090.49	 
	10.50	 	 	$	15,765,498.14	 	 	$	13,928,165.65	 
	10.60	 	 	$	16,121,110.88	 	 	$	14,283,778.39	 
	10.70	 	 	$	16,417,454.83	 	 	$	14,520,853.55	 
	10.80	 	 	$	16,773,067.57	 	 	$	14,817,197.50	 
	10.90	 	 	$	17,128,680.31	 	 	$	15,113,541.45	 
	11.00	 	 	$	17,425,024.26	 	 	$	15,409,885.40	 

  

    2 

     

    

 

If the VWAP Price is between two VWAP Prices in the table above,
the amount of the Termination Payment with respect to the Terminated Portion of the Relevant Transaction shall be determined by
a straight-line interpolation between the amount of the Termination Payment set forth for the higher and lower VWAP Prices. If
the VWAP Price exceeds the highest or is below the lowest VWAP Price in the table above, the amount of the Termination Payment
with respect to the Terminated Portion of the Relevant Transaction shall be extrapolated from the table in a commercially reasonable
manner.

 

The parties acknowledge and agree that the Termination Payments
set forth in the table above shall remain subject to adjustment pursuant to the terms of the applicable Relevant Transaction during
the term of this Confirmation and that any such adjustment will be made in good faith and in a commercially reasonable manner by
the Calculation Agent subject to the applicable requirements set forth opposite the caption “Calculation Agent” in
the applicable Relevant Transaction.

 

“VWAP Price” shall mean the arithmetic average
of the per-Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page IRWD
<equity> AQR in respect of the period from the scheduled opening time of the Exchange to the Scheduled Closing Time of the
Exchange on each Scheduled Trading Day that is not a Disrupted Day during the Unwind Period (or if such volume-weighted average
price is unavailable at such time, the market value of one Share on such Valid Day, as determined by the Calculation Agent using,
if practicable, a volume-weighted average method).

 

“Unwind
Period” shall mean the four Scheduled Trading Days beginning on and including the earlier of (1) the Scheduled Trading
Day following the date that J.P. Morgan Securities LLC (the “Initial Purchaser”) exercises its option to purchase
additional Notes (as defined herein) pursuant to Section 2 of the Purchase Agreement between Counterparty and the Initial Purchaser,
as notified by Counterparty to Dealer on such day in a written notice containing a repetition of the representation and warranty
contained in Section 8(f) herein, and (2) August 26, 2019; provided, however, that (a) if any such Scheduled Trading Day
is a Disrupted Day, the Unwind Period shall be extended by one Scheduled Trading Day for each such Disrupted Day (which provision
shall be applied successively until four Scheduled Trading Days that are not Disrupted Days occur, in which case the Termination
Effective Date shall be postponed by one Scheduled Trading Day for each such Disrupted Day) and (b) Dealer may (x) postpone the
Unwind Period or (y) add, in whole or in part, Scheduled Trading Days to the Unwind Period, in either case, if Dealer reasonably
and in good faith, (i) determines that such action is reasonably necessary or appropriate to preserve Dealer’s commercially
reasonable hedging or hedge unwind activity hereunder in light of existing liquidity conditions or (ii) determines, based on the
advice of counsel, that such action is reasonably necessary or appropriate to enable Dealer to effect transactions with respect
to Shares in connection with its commercially reasonable 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.

 

6.                
The parties agree that from and after the Termination Effective Date, each of the Relevant Transactions shall be
amended and restated in its entirety but with the adjustments shown in the column labeled “Revisions to the Terms of the
Relevant Transaction” in Schedule A beside each Relevant Transaction. The parties further agree that each of the following
side letters to the Relevant Transactions shall continue in full force and effect:

 

		·	The letter agreement by and between Dealer and Counterparty dated as of June 10, 2015, specifying certain additional terms
and conditions of the Warrants issued by Counterparty to Dealer;

  

		·	The letter agreement by and between Dealer and Counterparty dated as of June 10, 2015, specifying certain additional terms
and conditions of the Call Options issued by Dealer to Counterparty; and

 

    3 

     

    

 

7.                
10b5-1 Plan. Counterparty represents, warrants and covenants to Dealer that:

 

		a.	it is entering into this Confirmation and the Transaction in good faith and
not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange
Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of
the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any
corresponding or hedging transaction or position with respect to the Shares. Counterparty acknowledges that it is the intent of
the parties that transactions in the Shares effected by Dealer in connection with this Transaction during the Unwind Period comply
with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 and this Transaction shall be interpreted to comply
with the requirements of Rule 10b5-1(c).

 

		b.	it will not seek to control or influence Dealer’s decision to make any “purchases
or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) in connection with this Transaction, including, without limitation,
Dealer’s decision to enter into any hedging transactions. Counterparty represents
and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Confirmation
under Rule 10b5-1.

 

		c.	it acknowledges and agrees that any amendment, modification, waiver or termination
of this Transaction must be effected in accordance with the requirements for the amendment or termination of a “plan”
as defined in Rule 10b5-1(c). Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination
shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment,
modification, waiver or termination shall be made at any time at which Counterparty or any officer, director, manager or similar
person of Counterparty is aware of any material non-public information regarding Issuer or the Shares.

 

8.                
Counterparty represents and warrants to Dealer on the date hereof and, with respect to all representations below
other than the representation in subsection 8(f), on the Termination Effective Date that:

 

		a.	Counterparty has all necessary corporate power and authority to execute, deliver and perform
its obligations in respect of this Confirmation; such execution, delivery and performance have been duly authorized by all necessary
corporate action on Counterparty’s part; and this Confirmation has been duly and validly executed and delivered by Counterparty
and constitutes its valid and binding obligation, enforceable against Counterparty in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness,
good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity) and except that rights
to indemnification and contribution hereunder may be limited by federal or state securities laws or public policy relating thereto.

 

		b.	Neither the execution and delivery of this Confirmation nor the incurrence or performance of
obligations of Counterparty hereunder will conflict with or result in a breach of the certificate of incorporation or by-laws (or
any equivalent documents) of Counterparty, or any applicable law or regulation, or any order, writ, injunction or decree of any
court or governmental authority or agency, or any agreement or instrument to which Counterparty or any of its subsidiaries is a
party or by which Counterparty or any of its subsidiaries is bound or to which Counterparty or any of its subsidiaries is subject,
or constitute a default under, or result in the creation of any lien under, any such agreement or instrument.

 

    4 

     

    

 

		c.	No consent, approval, authorization, or order of, or filing with, any governmental agency or
body or any court is required in connection with the execution, delivery or performance by Counterparty of this Confirmation, except
such as have been obtained or made and such as may be required under the Securities Act of 1933, as amended, or state securities
laws.

 

		d.	Counterparty is not and, after consummation of 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.

 

		e.	Counterparty is an “eligible contract participant” (as such term is defined in Section
1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C)
of the Commodity Exchange Act).

 

		f.	Counterparty and each of its affiliates are not, on the date hereof, in possession of any material
non-public information with respect to the Issuer or the Shares.

 

		g.	No state or local (including any non-U.S. jurisdiction’s) 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), except for the reporting requirements of the Exchange
Act and rules promulgated thereunder as a result of Dealer or its affiliates owning or holding (however defined) Shares.

 

		h.	Counterparty (A) is capable of evaluating investment risks independently, both in general and
with regard to all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment
in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer
in writing; and (C) has total assets of at least $50 million.

 

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

 

9.                
Dealer hereby repeats the representations made to Counterparty in Section 3 of the 2002 ISDA Master Agreement on
the date hereof and on the Termination Effective Date.

 

10.              
Governing Law. This Confirmation and any dispute arising hereunder shall be governed by and construed in accordance
with the laws of the State of New York (without reference to choice of law doctrine).

 

11.              
If on or prior to August 12, 2019 (or such later date as agreed upon by the parties) (such date, the “Termination
Transaction Contingency Date”), the issuance by Counterparty of its Convertible Senior Notes due 2024 and its Convertible
Senior Notes due 2026 has not been completed for any reason, subject to the proviso below, this Transaction shall automatically
be cancelled without the payment of any settlement amount, breakage costs or other amounts representing the future value of this
Transaction and all of the respective rights and obligations of Dealer and Counterparty under this Confirmation shall be cancelled
and terminated; provided that, if Dealer determines that as a result of any hedge unwind activity by Dealer in good faith
in connection with the transactions contemplated hereby the cancellation of the Transaction would result in Dealer not maintaining
Hedge Positions in the amount it deems appropriate with respect to any Relevant Transaction, this Transaction shall remain in effect
but the Terminated Portions for each Relevant Transaction shall be determined by Dealer in good faith to correspond to such hedge
unwind activity and the relevant Termination Payments shall be adjusted pro rata and the Calculation Agent shall make corresponding
adjustments to the respective amounts set forth in Schedule A. For the avoidance of doubt, upon such cancellation and termination
of this Confirmation, except as set forth in the immediately preceding proviso, the respective rights and obligations of Dealer
and Counterparty under each Relevant Transaction, any indenture or otherwise shall not be cancelled or terminated. Following such
cancellation and termination of this Confirmation, except in the case set forth in the proviso above, 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 this Transaction either prior to or after
the Termination Transaction Contingency Date.

 

    5 

     

    

 

12.              
Except as expressly set forth herein, all of the terms and conditions of the Call Options and the Warrants shall
remain in full force and effect and are hereby confirmed in all respects.

 

13.              
U.S. Stay Regulations. The parties agree that (i) to the extent that prior to the date hereof both parties have adhered
to the 2018 ISDA U.S. Resolution Stay Protocol (the “Protocol”), the terms of the Protocol are incorporated
into and form a part of this Confirmation, and for such purposes this Confirmation shall be deemed a Protocol Covered Agreement
and each party shall be deemed to have the same status as “Regulated Entity” and/or “Adhering Party” as
applicable to it under the Protocol; (ii) to the extent that prior to the date hereof the parties have executed a separate agreement
the effect of which is to amend the qualified financial contracts between them to conform with the requirements of the QFC Stay
Rules (the “Bilateral Agreement”), the terms of the Bilateral Agreement are incorporated into and form a part
of this Confirmation and each party shall be deemed to have the status of “Covered Entity” or “Counterparty Entity”
(or other similar term) as applicable to it under the Bilateral Agreement; or (iii) if clause (i) and clause (ii) do not apply,
the terms of Section 1 and Section 2 and the related defined terms (together, the “Bilateral Terms”) of the
form of bilateral template entitled “Full-Length Omnibus (for use between U.S. G-SIBs and Corporate Groups)” published
by ISDA on November 2, 2018 (currently available on the 2018 ISDA U.S. Resolution Stay Protocol page at www.isda.org and, a copy
of which is available upon request), the effect of which is to amend the qualified financial contracts between the parties thereto
to conform with the requirements of the QFC Stay Rules, are hereby incorporated into and form a part of this Confirmation, and
for such purposes this Confirmation shall be deemed a “Covered Agreement,” Dealer shall be deemed a “Covered
Entity” and Counterparty shall be deemed a “Counterparty Entity.” In the event that, after the date of this Confirmation,
both parties hereto become adhering parties to the Protocol, the terms of the Protocol will replace the terms of this paragraph.
In the event of any inconsistencies between this Confirmation and the terms of the Protocol, the Bilateral Agreement or the Bilateral
Terms (each, the “QFC Stay Terms”), as applicable, the QFC Stay Terms will govern. Terms used in this paragraph
without definition shall have the meanings assigned to them under the QFC Stay Rules. For purposes of this paragraph, references
to “this Confirmation” include any related credit enhancements entered into between the parties or provided by one
to the other. In addition, the parties agree that the terms of this paragraph shall be incorporated into any related covered affiliate
credit enhancements, with all references to Dealer replaced by references to the covered affiliate support provider.

 

“QFC Stay Rules” means
the regulations codified at 12 C.F.R. 252.2, 252.81–8, 12 C.F.R. 382.1-7 and 12 C.F.R. 47.1-8, which, subject to limited
exceptions, require an express recognition of the stay-and-transfer powers of the FDIC under the Federal Deposit Insurance Act
and the Orderly Liquidation Authority under Title II of the Dodd Frank Wall Street Reform and Consumer Protection Act and the override
of default rights related directly or indirectly to the entry of an affiliate into certain insolvency proceedings and any restrictions
on the transfer of any covered affiliate credit enhancements.

 

14.              
Role of Agent. Each party agrees and acknowledges that (i) J.P. Morgan Securities LLC, an affiliate of Dealer (“JPMS”),
has acted solely as agent for Dealer (and not as agent for Counterparty) and not as principal with respect to the Transaction and
(ii) JPMS has no obligation or liability, by way of guaranty, endorsement or otherwise, in any manner in respect of the Transaction
(including, if applicable, in respect of the settlement thereof). Each party agrees it will look solely to the other party (or
any guarantor in respect thereof) for performance of such other party’s obligations under the Transaction. For the avoidance
of doubt, any performance by Dealer of its obligations hereunder solely to JPMS shall not relieve Dealer of such obligations. Any
performance by Counterparty of its obligations (including notice obligations) through or by means of JPMS’ agency for Dealer
shall constitute good performance of Counterparty’s obligations hereunder to Dealer.

  

    6 

     

    

 

[The remainder of page intentionally
left blank]

 

    7 

     

    

  

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. Facsimile or portable
document format (.pdf) copies of this Confirmation shall have the same force and effect as an original.

 

Please confirm that the foregoing correctly sets forth the terms
of the agreement between Dealer and Counterparty with respect to the Transaction, by manually signing this Confirmation as evidence
of agreement to such terms and returning an executed copy to us.

 

	Very Truly Yours,	 
	 	 	 
	J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association 	 
	 	 	 
	By:	/s/ Kevin Cheng	 
	Name: 	Kevin Cheng	 
	Title: 	Vice President	 

 

JPMorgan Chase Bank, National Association

Organised under the laws of the United States
as a National Banking Association.

Main Office 1111 Polaris Parkway, Columbus,
Ohio 43240

Registered as a branch in England &
Wales branch No. BR000746

Registered Branch Office 25 Bank Street,
Canary Wharf, London E14 5JP

Authorised by the Office of the Comptroller
of the Currency in the jurisdiction of the USA.

Authorised by the Prudential Regulation
Authority. Subject to regulation by the Financial Conduct

Authority and to limited regulation by the
Prudential Regulation Authority. Details about the

extent of our regulation by the Prudential Regulation Authority
are available from us on request.

  

     

     

    

 

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

 

	IRONWOOD PHARMACEUTICALS, INC.

 

	 
	By:	/s/ Gina Consylman	 
	Name: 	Gina Consylman	 
	Title: 	SVP and CFO, Finance	 

 

[Signature Page to Unwind Agreement]

 

     

     

    

  

Schedule A

 

	Relevant
Transaction 
	 	Number
of Options or 

Warrants, As Applicable, of 

such Relevant Transaction

 Subject to Termination 
	 	Revisions
to the Terms of the 

Relevant Transaction 

	Base call option transaction confirmation, dated as of June 10, 2015, by and between Dealer and Counterparty	 	215,000 Options	 	Number of Options shall be revised to equal 85,000
	Base warrant transaction confirmation, dated as of June 10, 2015, by and between Dealer and Counterparty	 	5,926,879  Warrants	 	Number of Warrants shall be revised to equal 2,343,185

 

    A-1

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