Document:

NOTE AMENDMENT AND EXCHANGE AGREEMENT

 Exhibit 10.3 
  
 Execution Counterpart 
  
 NOTE AMENDMENT AND EXCHANGE AGREEMENT 
  
 AMONG 
  
 GENESOFT PHARMACEUTICALS, INC., 
  
 GENOME THERAPEUTICS CORP. 
  
 AND

  
 THE HOLDERS LISTED ON THE SIGNATURE PAGES HERETO 
  
 DATED AS OF NOVEMBER 17, 2003 

 TABLE OF CONTENTS 
  

	 ARTICLE I DEFINITIONS
	  	1
		
	 ARTICLE II PURCHASE AGREEMENT AND NOTE AMENDMENTS
	  	6
			
	 	  	 SECTION 2.1. Interest Rate.
	  	6
	 	  	 SECTION 2.2. Maturity Date.
	  	6
	 	  	 SECTION 2.3. Miscellaneous
	  	7
	 	  	 SECTION 2.4. Effectiveness. .
	  	7
		
	 ARTICLE III EXCHANGE
	  	7
			
	 	  	 SECTION 3.1. Agreement to Exchange.
	  	7
	 	  	 SECTION 3.2. Terms of Parent Notes.
	  	7
	 	  	 SECTION 3.3. Closing.
	  	8
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT
	  	8
			
	 	  	 SECTION 4.1. Merger Agreement Representations. .
	  	8
	 	  	 SECTION 4.2. Additional Representations.
	  	8
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF EACH HOLDER
	  	9
			
	 	  	 SECTION 5.1. Principal Amounts of Existing Notes.
	  	9
	 	  	 SECTION 5.2. Interest of Existing Notes.
	  	9
	 	  	 SECTION 5.3. Investment Intent. .
	  	9
	 	  	 SECTION 5.4. Authorization.
	  	9
	 	  	 SECTION 5.5. Enforceability.
	  	10
	 	  	 SECTION 5.6. Private Placement.
	  	10
		
	 ARTICLE VI REDEMPTION
	  	10
			
	 	  	 SECTION 6.1. Redemption at Option of Holders.
	  	10
	 	  	 SECTION 6.2. Optional Redemption by Parent.
	  	11
		
	 ARTICLE VII ISSUANCE OF COMMON STOCK UPON EXCHANGE
	  	12
			
	 	  	 SECTION 7.1. December Holders.
	  	12
	 	  	 SECTION 7.2. April Holders. .
	  	13
		
	 ARTICLE VIII CONVERSION
	  	13
			
	 	  	 SECTION 8.1. Conversion Privilege; Restrictive Legends.
	  	13
	 	  	 SECTION 8.2. Conversion Procedure.
	  	14
	 	  	 SECTION 8.3. Fractional Shares.
	  	14
	 	  	 SECTION 8.5. Company to Provide Stock.
	  	14
	 	  	 SECTION 8.6. Adjustment of Conversion Rate.
	  	14
	 	  	 SECTION 8.7. No Adjustment.
	  	18
	 	  	 SECTION 8.8. Other Adjustments.
	  	18
	 	  	 SECTION 8.9. Adjustments for Tax Purposes.
	  	18
	 	  	 SECTION 8.10. Notice of Adjustment.
	  	18
	 	  	 SECTION 8.11. Notice of Certain Transactions.
	  	18
	 	  	 SECTION 8.12. Effect of Reclassifications, Consolidations, Mergers, Binding Share Exchanges or Sales on Conversion
Privilege.
	  	19
		
	 ARTICLE IX COVENANTS OF PARENT AND THE HOLDERS
	  	19
			
	 	  	 SECTION 9.1. Covenants of Parent
	  	19
	 	  	 SECTION 9.2. Covenant of the Holders.
	  	20
		
	 ARTICLE X
	  	21
			
	 	  	 SECTION 10.1. When Company May Merge, etc..
	  	 21

	 	  	 SECTION 10.2. Successor Substituted.
	  	 21

		
	 ARTICLE XI CONDITIONS PRECEDENT TO CLOSING
	  	 21

			
	 	  	 SECTION 11.1. Conditions to Parent’s Obligations.
	  	 21

	 	  	 SECTION 11.2. Conditions to Holders’ Obligations.
	  	 21

		
	 ARTICLE XII DEFAULTS
	  	 22

			
	 	  	 SECTION 12.1. Events of Default.
	  	 22

	 	  	 SECTION 12.2. Certain Actions Following an Event of Default.
	  	 22

	 	  	 SECTION 12.3. Waivers.
	  	 23

		
	 ARTICLE XIII SUBORDINATION
	  	 23

			
	 	  	 SECTION 13.1. Subordination. .
	  	 23

		
	 ARTICLE XIV MISCELLANEOUS
	  	 24

			
	 	  	 SECTION 14.1. Notices.
	  	 24

	 	  	 SECTION 14.2. Governing Law.
	  	 26

	 	  	 SECTION 14.4. Termination.
	  	 26

	 	  	 SECTION 14.5. Entire Agreement.
	  	 26

	 	  	 SECTION 14.6. Modifications, Amendments and Waivers.
	  	 26

	 	  	 SECTION 14.7. Expenses.
	  	 26

	 	  	 SECTION 14.8. Registrar, Paying Agent and Conversion Agent.
	  	 26

	 	  	 SECTION 14.9. Paying Agent To Hold Money in Trust.
	  	 27

	 	  	 SECTION 14.10. Holder Lists.
	  	 27

	 	  	 SECTION 14.11. Transfer and Exchange.
	  	 27

	 	  	 SECTION 14.12. Replacement Parent Notes.
	  	 27

	 	  	 SECTION 14.13. Cancellation.
	  	 27

	 	  	 SECTION 14.14. Titles and Headings.
	  	 27

	 	  	 SECTION 14.16. Assignment; No Third Party Beneficiaries.
	  	 27

	 	  	 SECTION 14.17. Severability.
	  	 28

	 	  	 SECTION 14.18. Counterparts.
	  	 28

	 	  	 SECTION 14.19. Further Assurances.
	  	 28

	 	  	 SECTION 14.20. Remedies Cumulative.
	  	 28

	 	  	 SECTION 14.21. Specific Performance. .
	  	 28

	 	  	 SECTION 14.22. Venue; Service of Process.
	  	 28

 NOTE AMENDMENT AND EXCHANGE AGREEMENT 
  
 NOTE AMENDMENT AND EXCHANGE AGREEMENT dated as of November 17, 2003 (this “Agreement”), by and among Genesoft
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), Genome Therapeutics Corp., a Massachusetts Corporation (“Parent”), each of the holders set forth on Schedule A attached hereto (each a
“December Holder” and collectively the “December Holders”) and each of the holders set forth on Schedule B attached hereto (each an “April Holder” and collectively the “April
Holders,” and each December Holder and each April Holder, a “Holder” and collectively the “Holders”) . 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company and the December Holders are party to the Note and Warrant Purchase Agreement dated as of December 10, 2002, as amended (the
“December Purchase Agreement”); 
  
 WHEREAS, the
Company and the April Holders are party to the Note and Warrant Purchase Agreement dated as of April 15, 2003, as amended (the “April Purchase Agreement”); 
  
 WHEREAS, each of the April Purchase Agreement and the December Purchase Agreement can be amended by the Company and the
holders of a majority in interest of the aggregate principal of the Existing December Notes and the Existing April Notes, respectively; 
  
 WHEREAS, the December Holders and the April Holders represent 100% of the aggregate principal amount of the Existing December Notes and the Existing April
Notes, respectively; 
  
 WHEREAS, each of the December Holders,
the April Holders and the Company desires to amend the maturity date and the interest rate of each of the Existing December Notes and Existing April Notes, respectively; 
  
 WHEREAS, each of the December Holders and the April Holders desire to exchange, upon the Effective Time, the Existing
December Notes and Existing April Notes for $22,309,646.97 aggregate principal amount of Parent’s 5% promissory notes due on the fifth anniversary of the Closing Date (the “Parent Notes”) in substantially the form attached
hereto as Exhibit A, the Preference Shares and the Accrued Interest Shares (each as defined herein). 
  
 NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows. 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 (a) As used in this Agreement, the following terms shall have the following meanings: 
  
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such Person and shall include any investment fund or other entity that is managed or advised by the same manager or advisor as such Person or by a manager or advisor that is under
common control with such manager or advisor. For the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Applicable Law” means (a) any United States federal, state, local or foreign law, statute, rule,
regulation, order, writ, injunction, judgment, decree or permit of any Governmental Authority and (b) any rule or listing requirement of any applicable national stock exchange or listing requirement of any national stock exchange or Commission
recognized trading market on which securities issued by Parent or any of the Subsidiaries are listed or quoted. 

 “Applicable Rate” means five percent (5%) per annum. 
  
 “Bankruptcy Code” means Title 11 of the United States Code.

  
 “Board of Directors” means the board of
directors of Parent. 
  
 “Business Day” means any
day other than a Saturday, a Sunday, or a day when banks in the City of New York, in the State of New York are authorized by Applicable Law to be closed. 
  
 “Capital Stock” means (i) with respect to any Person that is a corporation, any and all shares of corporate stock and (ii) with respect
to any other Person, any and all partnership or other equity interests of such Person. 
  
 “Closing Financing Price” means the issuance price per share of Common Stock issued in the financing intended to be consummated at the Effective Time (the “Closing Financing”) as
contemplated by Section 7.01(e) of the Merger Agreement. 
  
 “Closing Sale Price” means the price of a share of Common Stock on the relevant date, determined (a) on the basis of the closing per share sale price (or if no closing sale price is reported, the average of the bid and ask
prices or, if more than one in either case, the average of the average bid and the average ask prices) on such date on the principal securities exchange on which the Common Stock is listed, the Nasdaq National Market or the Nasdaq Smallcap Market;
or (b) if not so quoted, as reported by National Quotation Bureau, Incorporated or a similar organization. In the absence of a quotation, the Closing Sale Price shall be such price as Parent shall reasonably determine on the basis of such quotations
as most accurately reflecting the price that a fully informed buyer, acting on his own accord, would pay to a fully informed seller, acting on his own accord in an arms-length transaction, for a share of such Common Stock. 
  
 “Commission” means the United States Securities and Exchange
Commission. 
  
 “Common Stock” means
Parent’s common stock, $0.10 par value per share. 
  
 “Conversion Agent” means Parent, or such agent otherwise appointed by Parent. 
  
 “Conversion Price” means, as of any date of determination, the dollar amount derived by dividing $1,000 of principal amount of Parent
Notes by the Conversion Rate then in effect. 
  
 “Conversion Rate” is as defined in Section 8.1(a). 
  
 “Default” means any Event of Default and any event or condition which with the passage of time or giving of notice, or both, would become an Event of Default. 
  
 “Effective Time” is used as defined in the Merger Agreement.

  
 “Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  
 “Existing April Notes” means the promissory notes issued by the Company to the April Holders pursuant to the April Purchase Agreement.

  
 “Existing December Notes” means the
promissory notes issued by the Company to the December Holders pursuant to the December Purchase Agreement. 
  
 “Existing Notes” means, collectively, the Existing April Notes and the Existing December Notes. 
  
 “GAAP” means United States generally accepted accounting
principles, consistently applied. 

 “Governmental Authority” means (i) any foreign, Federal, state or local court or
governmental or regulatory agency or authority, (ii) any arbitration board, tribunal or mediator and (iii) any national stock exchange or Commission recognized trading market on which securities issued by Parent or any of the Subsidiaries are listed
or quoted. 
  
 “Holders” initially means the
April Note Holders and the December Note Holders, collectively, and, after the Closing, shall mean the Persons holding the Parent Notes outstanding at such time. 
  
 “Indebtedness” means, with respect to any Person, the principal of, and premium, if any, and interest on
and all other obligations in respect of (a) all indebtedness of such person for borrowed money (including all indebtedness evidenced by notes, bonds, debentures or other securities), (b) all reimbursement obligations of such Person with respect to
letters of credit, bankers’ acceptances or similar facilities issued for the account of such person, (c) all capital lease obligations of such Person, (d) all net obligations of such person under interest rate swap, currency exchange or similar
agreements of such Person and (e) all obligations and other liabilities, contingent or otherwise, under any lease or related document, including a purchase agreement, conditional sale or other title retention agreement, in connection with the lease
of real property or improvements thereon (or any personal property included as part of any such lease) which provides that such Person is contractually obligated to purchase or cause a third party to purchase the leased property or pay an
agreed-upon residual value of the leased property, including such Person’s obligations under such lease or related document to purchase or cause a third party to purchase such leased property or pay an agreed-upon residual value of the leased
property to the lessor, (f) guarantees by such Person of indebtedness described in clauses (a) through (e) of another Person, and (g) all renewals, extensions, refundings, deferrals, restructurings, amendments and modifications of any indebtedness,
obligation, guarantee or liability of the kind described in clauses (a) through (f). 
  
 “Initial Conversion Price” means one hundred and ten percent (110%) of the average Closing Sale Price for the five Trading Days preceding the Closing Date (but excluding the Closing Date). 

 
 “Legal Holiday” means a Saturday, a Sunday or a day on
which banking institutions are not required to be open in the City of New York, in the State of New York. 
  
 “Liquidation Event” means (i) any acquisition of Parent by means of merger or other form of corporate reorganization in which outstanding
shares of the Parent are exchanged for securities or other consideration issued, or caused to be issued, by the acquiring corporation or its subsidiary (other than a mere reincorporation transaction) and pursuant to which the holders of the
outstanding voting securities of Parent as constituted immediately prior to such consolidation, merger or other transaction fail to hold equity securities representing a majority of the voting power of Parent or surviving entity immediately
following such consolidation, merger or other transaction, (ii) any “person” or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as such term
is used in Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty percent (50%) or more of the total voting power of all classes of Parent’s Capital Stock entitled to vote generally in the election of directors, (iii) a sale,
lease or other disposition of all or substantially all of the assets of Parent, (iv) the license or sublicense of any intellectual property rights owned or controlled by Parent with regard to the right to develop and commercialize Gemifloxacin,
other than any license or sublicense to develop, make, have made, use, sell or have sold Gemifloxacin outside of the United States or within the United States pursuant to an agreement in which Parent would co-promote Gemifloxacin, in a manner in
which Parent sales representatives (or sales representatives contracted by Parent) would participate in detailing the product to physicians in the United States. 
  
 “Maturity Date” means the fifth (5th) anniversary of the Effective Time. 
  
 “Merger Agreement” means the Agreement and Plan of Merger
and Reorganization dated as of the date hereof among Parent, Parent’s acquisition subsidiary, Company and the Stockholders’ Representative, including all schedules and exhibits thereto. 
  
 “Note Documents” means, collectively, this Agreement and the
Parent Notes. 

 “Note Obligations” means all present and future liabilities, obligations and
indebtedness of Parent under or in connection with this Agreement, or the Parent Notes, including the obligations in respect of principal, interest and expenses from time to time owing under the Parent Notes. 
  
 “Parent Material Adverse Effect” is used herein as defined
in the Merger Agreement. 
  
 “Paying Agent” means
Parent, or such agent otherwise appointed by Parent. 
  
 “Person” means any individual, partnership, corporation, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization, government or agency or political subdivision thereof,
or other entity. 
  
 “Private Placement Legend”
means the legend as set forth in Section 9.1.2 hereto. 
  
 “Registrar” means Parent’s principal executive office where Parent Notes may be presented for registration of transfer or for exchange. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement dated as of the date hereof among
Parent and the Holders. 
  
 “Required Holders”
means at any time the Holders of a majority of the aggregate principal amount of the Parent Notes outstanding at such time. 
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

  
 “Stockholders’ Representative” means the
Person named as such in the Merger Agreement. 
  
 “subsidiary” means, with respect to any Person, (i) a corporation a majority of whose capital stock with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such
Person, by a subsidiary of such Person, or by such Person and one or more subsidiaries of such Person, (ii) a partnership in which such Person or a subsidiary of such Person is, at the date of determination, a general partner of such partnership and
has the power to direct the policies and management of such partnership or (iii) any other Person (other than a corporation) in which such Person, a subsidiary of such Person or such Person and one or more subsidiaries of such Person, directly or
indirectly, at the date of determination thereof, has (A) at least a majority ownership interest or (B) the power to elect or direct the election of a majority of the directors or other governing body of such Person. 
  
 “Subsidiary” means a subsidiary of Parent. 
  
 “Trading Day” means a day during which trading in securities
generally occurs on the principal national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not listed on a national or regional securities exchange, on the National Association of Securities
Dealers Automated Quotation System or, if the Common Stock is not quoted on the National Association of Securities Dealers Automated Quotation System, on the principal other market on which the Common Stock is then traded. 
  
 “Transactions” means the transactions contemplated by this
Agreement and the Parent Notes. 
  
 “Voting Capital
Stock” means, with respect to any Person, securities of any class or classes of Capital Stock in such Person ordinarily entitling the holders thereof (whether at all times or at the times that such class of Capital Stock has voting power by
reason of the happening of any contingency) to vote in the election of members of the board of directors or comparable governing body of such Person. 
  
 (b) As used in this Agreement, the, following terms shall have the meanings given thereto in the Sections set forth opposite such terms: 

	 Term

	  	Section

	 Accrued Interest Shares
	  	7.2
		
	 Agreement
	  	Preamble
		
	 April Holder
	  	Preamble
		
	 April Holders
	  	Preamble
		
	 April Purchase Agreement
	  	Recitals
		
	 Closing
	  	3.3
		
	 Closing Date
	  	3.3
		
	 Combined Amount
	  	8.6(d)
		
	 Commencement Date
	  	8.6(g)
		
	 Company
	  	Preamble
		
	 Conversion Shares
	  	8.6(c)
		
	 December Holder
	  	Preamble
		
	 December Holders
	  	Preamble
		
	 December Purchase Agreement
	  	Recitals
		
	 Determination Date
	  	8.6(g)
		
	 Distribution Date
	  	8.6(c)
		
	 Distribution Declaration Date
	  	8.6(d)
		
	 Event of Default
	  	12.1
		
	 Expiration Time
	  	8.6(e)
		
	 Holder
	  	Preamble
		
	 Holders
	  	Preamble
		
	 Issuance
	  	4.2.1
		
	 Liquidation Event Expiration Time
	  	6.1(b)(i)
		
	 Mandatory Conversion Date
	  	8.1(c)
		
	 Mandatory Conversion Notice
	  	8.1(c)
		
	 Non-Payment Default
	  	13.4(b)
		
	 Notices
	  	13.1
		
	 Parent
	  	Preamble
		
	 Parent Notes
	  	Recitals
		
	 Parent Notice
	  	6.1(b)
		
	 Parent Promissory Note
	  	14.3
		
	 Parent Redemption Notice
	  	6.2(b)
		
	 Permitted Indebtedness
	  	9.1.4
		
	 Permitted Liens
	  	9.5
		
	 Preference Shares
	  	7.1
		
	 Pricing Event
	  	8.1(c)
		
	 Pricing Period
	  	8.1(c)
		
	 Purchased Shares
	  	8.6(e)(i)
		
	 Redemption Date
	  	6.2(a)
		
	 Repurchase Date
	  	6.1(a)
		
	 Rights
	  	8.6( c)
		
	 Triggering Distribution
	  	8.6(d)

 Except as the context otherwise explicitly requires (i) the capitalized term “Section” refers
to sections of this Agreement, (ii) the capitalized term “Exhibit” refers to exhibits to this Agreement, (iii) references to a particular Section include all subsections thereof, (iv) the word “including” shall be construed as
“including without limitation”, (v) accounting terms not otherwise defined herein have the meaning provided under GAAP, (vi) references to a particular statute or regulation include all rules and regulations thereunder and any successor
statute, regulation or rules, in each case as from time to time in effect, (vii) references to a particular Person include such Person’s successors and assigns to the extent not prohibited by this Agreement and the other Note Documents and
(viii) references to “$” are to United States dollars. 
  
 ARTICLE II 
  
 PURCHASE AGREEMENT AND NOTE
AMENDMENTS 
  
 SECTION 2.1. Interest Rate. 

 
 (a) Each Existing December Note is hereby amended by adding a new fourth
sentence of the first paragraph of each Existing December Note as follows: 
  
 “Notwithstanding the immediately preceding two sentences, from and after December 10, 2003, interest shall accrue at a rate of five percent (5%) per annum.” 
  
 (b) Each Existing April Note is hereby amended by adding a new fourth
sentence of the first paragraph of each Existing April Note as follows: 
  
 “From and after December 15, 2003, the Minimum Interest shall accrue at a rate of five percent (5%) per annum; no Monthly Interest shall accrue after such date.” 
  
 SECTION 2.2. Maturity Date. 
  
 (a) Section 1(h) of the December Purchase Agreement is hereby amended and
restated in its entirety to read as follows: 
  
 SECTION 21.02 “Maturity Date” shall mean the later of (i) December 10, 2005 and (ii) 60 days following termination or expiration of the Agreement and Plan of Merger and Reorganization dated as of November
    , 2003 among Parent, Parent’s acquisition subsidiary, Company and the Stockholders’ Representative named therein, including all schedules and exhibits thereto.” 
  
 (b) Section 1(h) of the April Purchase Agreement is hereby amended and
restated in its entirety to read as follows: 
  
 “Maturity
Date” shall mean the later of (i) December 15, 2003 and (ii) 60 days following termination or expiration of the Agreement and Plan of Merger and Reorganization dated as of
                 , 2003 among Parent, Parent’s acquisition subsidiary, Company and the Stockholders’ Representative named therein, including all
schedules and exhibits thereto.” 
  
 (c) The third sentence
of the first paragraph of each Existing December Note is hereby amended and restated in its entirety to read as follows: 
  
 “The principal and accrued interest shall be due and payable by the Company on demand by the Lender at any time after the later of (i) December 10,
2005 and (ii) the date sixty days following the termination or expiration of the Agreement and Plan of Merger and Reorganization dated as of November     , 2003 among Parent, Parent’s acquisition subsidiary, Company
and the Stockholders’ Representative named therein, including all schedules and exhibits thereto.” 

 (d) The third sentence of the first paragraph of each Existing April Note is hereby amended and restated
in its entirety to read as follows: 
  
 “The Principal
Amount, the Minimum Interest and Monthly Interest, if any, shall be due and payable by the Company on demand by the Lender at any time after the later of (i) December 15, 2003 and (ii) the date sixty days following the termination or expiration of
the Agreement and Plan of Merger and Reorganization dated as of November     , 2003 among Parent, Parent’s acquisition subsidiary, Company and the Stockholders’ Representative named therein, including all
schedules and exhibits thereto.” 
  
 SECTION 2.3.
Miscellaneous. The third sentence of Section 11.8 of the April Purchase Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Nonetheless (but subject to the provisions of Section 10.9 above), any term of this Agreement, the Notes or the Warrants may be amended and the
observance of any term of this Agreement, the Notes or the Warrants may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Majority Note Holders;
provided, however, that (i) the interest rate thereon may not be amended, and (ii) Section 2.2 may not be amended or waived to require the conversion of any Note into Conversion Shares, in the case of each of (i) and (ii), without the
consent of the Lender holding such Note.” 
  
 SECTION 2.4.
Effectiveness. The amendments set forth in this Section 2.4 shall be effective as of the date hereof, and shall continue to be effective in the event the Effective Time does not occur or the Merger Agreement is terminated. 
  
 ARTICLE III 
  
 EXCHANGE 
  
 SECTION 3.1. Agreement to Exchange. At the Effective Time, and upon the terms and subject to the conditions set forth in this Agreement, each
Holder will exchange all Existing Notes with Parent for a Parent Note. Each Parent Note will have the aggregate principal amount set forth next to each Holder’s name on Schedule A or Schedule B, as the case may be. The issuance to the Holders
of the Parent Notes, the Preference Shares and the Accrued Interest Shares shall be in full satisfaction of all amounts owing under the Existing Notes, and upon the issuance of the Parent Notes, the Preference Shares and the Accrued Interest Shares,
the Existing Notes shall be deemed paid in full. 
  
 SECTION 3.2.
Terms of Parent Notes. 
  
 (a) Interest. The
outstanding principal amount of the Parent Notes shall accrue and bear interest at a rate per annum which at all times shall equal the Applicable Rate, and shall be compounded semiannually. Parent will pay accrued and unpaid interest with respect to
the Parent Notes on the Maturity Date and on any accelerated maturity of the Parent Notes. For purposes of this Agreement, interest (and any amount expressed as interest) shall be calculated on the basis of a 30-day month and a 360-day year and the
number of days elapsed. 
  
 (b) Payment. On the earliest to
occur of the Maturity Date and any accelerated maturity of the Parent Notes, Parent will pay an amount equal to the aggregate outstanding principal amount of the Parent Notes, together with all accrued and unpaid interest thereon and all other Note
Obligations then outstanding against delivery to Parent of the Parent Notes for cancellation. No principal of the Parent Notes paid or prepaid hereunder may be reborrowed. 
  
 (c) Manner of Payment. Except as provided below, all payments and prepayments of principal and interest shall be made
in United States dollars in immediately available funds to each Holder of Parent Notes at the wire address provided by such Holder in writing to Parent. All payments and prepayments of interest on or principal of the Parent Notes shall be allocated
among the Holders of the Parent Notes in proportion to the relative 

 
outstanding amount of accrued interest on and/or principal of the Parent Notes (as the case may be) held by each Holder. Accrued interest shall not be
payable in cash, except upon the Maturity Date, redemption pursuant to Article VI hereof and any accelerated maturity of the Parent Notes. 
  
 (d) Form of Parent Notes. The Parent Notes shall be in the form provided in Exhibit A to this Agreement. 
  
 SECTION 3.3. Closing. Subject to the satisfaction or waiver of the
conditions set forth in this Agreement, the exchange of Existing Notes for the Parent Notes hereunder (the “Closing”) shall take place at 10:00 a.m. at the offices of Gunderson Dettmer Stough Villeneuve Franklin & Hachigian,
LLP, 155 Constitution Drive, Menlo Park, California, at the Effective Time, provided that the conditions set forth in Sections 11.1 and 11.2 hereof have been satisfied, or at such other place as the parties shall mutually agree upon (the
“Closing Date”). 
  
 At the Closing: 

 
 (a) Each Holder shall exchange against delivery of the Parent Notes to be
received by such Holder pursuant to Section 3.1 on the Closing Date, the Existing Notes held by such Holder. 
  
 (b) Parent shall deliver to the Holders: 
  
 (i) the Parent Note or Parent Notes to be delivered to such Holder pursuant to Section 3.1 on the Closing Date, which shall be registered
in the name of such Holder or its nominee or designee and in a single Parent Note or in multiple Parent Notes in such denominations equal to or greater than $10,000 as such Holder shall request not later than five (5) Business Days prior to the
Closing Date; 
  
 (ii) the Preference Shares and
the Accrued Interest Shares as contemplated by Article VII hereof; 
  
 (iii) a certificate of the secretary of Parent setting forth (A) a copy of the Certificate of Incorporation of the Parent and all amendments thereto as of a date no more than five days prior to the Closing Date, all
certified by the Secretary of State of the Commonwealth of Massachusetts, (B) a copy of the by-laws of Parent, as in effect on the Closing Date, (C) copies of all resolutions of the Board of Directors of Parent and any committees thereof authorizing
the Transactions, and (D) an incumbency certificate setting forth the name, title and authorized signature of each officer of Parent who will execute documents in connection with the Transactions; and 
  
 (iv) a long-form good standing certificate of Parent issued
by the Secretary of State of the Commonwealth of Massachusetts. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES OF
PARENT 
  
 SECTION 4.1. Merger Agreement
Representations. Parent hereby represents and warrants to each Holder on the date hereof and as of the Closing Date that each of the representations and warranties made by Parent in Article IV of the Merger Agreement is incorporated herein by
reference with the same force and effect as if fully set forth herein together with the definitions of the defined terms used therein, and subject to the matters set forth in the disclosure schedule delivered by Parent to the company concurrently
with the execution of the Merger Agreement, mutatis mutandis, so that references to the recipient of any such representations and warranties shall be deemed to be references to the Holders. 
  
 SECTION 4.2. Additional Representations. Parent hereby represents and
warrants to each Holder on the date hereof and as of the Closing Date as follows: 
  
 4.2.1. Authority Relative to This Agreement. Parent has all necessary corporate power and authority to execute and deliver this
Agreement, and to perform its obligations hereunder and to consummate the issuance of the Parent Notes (the “Issuance”) and the other transactions contemplated by this Agreement. The execution and delivery of this Agreement by Parent and
the consummation by Parent of the Issuance and the other transactions contemplated by this Agreement have been duly and validly authorized by all necessary corporate action, and no other corporate proceedings on the part of Parent are necessary to
authorize this Agreement or to consummate the Issuance and the other transactions 

 
contemplated by this Agreement. This Agreement has been duly and validly executed and delivered by Parent and, assuming the due authorization, execution and
delivery by the Holders, constitutes a legal, valid and binding obligation of Parent, enforceable against Parent in accordance with its terms, subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium or similar
Applicable Law affecting creditors’ rights generally and subject, as to enforceability, to the effect of general principles of equity. The Common Stock reserved for issuance upon conversion of the Parent Notes has been duly authorized and
reserved and, when issued upon conversion of the Parent Notes in accordance with the terms hereof, will be validly issued, fully paid and non-assessable and free of preemptive rights. 
  
 4.2.2. No Conflict; Required Filings and Consents. 
  
 (a) The execution and delivery of this Agreement by Parent does not, the
performance of this Agreement by Parent will not, and the consummation of the Issuance and the other transactions contemplated hereby will not, (i) conflict with or violate its certificate of incorporation and bylaws, (ii) assuming that all
consents, approvals, authorizations and other actions described in Section 4.2.2(b) have been obtained and all filings and obligations described in Section 4.2.2(b) have been made or complied with, conflict with or violate in any material respect
any Applicable Law or by which any property or asset of Parent is bound or affected, or (iii) conflict with, result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
result in the loss of any benefit under, or give to others any right of termination, amendment, acceleration or cancellation of, or result in the creation of a lien or other encumbrance on or forfeiture of, any material property or asset of Parent
pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which Parent is a party or by which any property or asset of Parent is bound or affected. 
  
 (b) The execution and delivery of this Agreement by Parent does not, and the
performance of this Agreement by Parent will not, require any consent, approval, order, authorization, registration or permit of, or filing with or notification to, any Governmental Authority, except for applicable requirements, if any, of the
Securities Exchange Act of 1934, as amended, Federal and state securities laws and the Nasdaq National Market, which requirements, if any, shall be complied with within the applicable time periods. 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES OF EACH HOLDER 
  
 Each Holder hereby severally, and not jointly, represents and warrants to Parent, as to itself and as to no other Person, as
of the date hereof and as of the Closing Date as follows: 
  
 SECTION 5.1. Principal Amounts of Existing Notes. The aggregate principal amount of the Existing Notes set forth opposite the name of such Holder on Schedule A and Schedule B hereto, as the case may be, is accurate and complete. Such
Holder’s Existing Notes conform in form and substance to the copies of such documents attached hereto as Schedule C. 
  
 SECTION 5.2. Interest of Existing Notes. 
  
 (a) The interest payable with respect to such Holder’s Existing December Notes as of December 10, 2003 as set forth opposite the name of such Holder
on Schedule A hereto is accurate and complete. 
  
 (b) The
interest payable with respect to such Holder’s Existing April Notes as of December 15, 2003 as set forth opposite the name of such Holder on Schedule B hereto is accurate and complete. 
  
 SECTION 5.3. Investment Intent. Such Holder is (i) an “accredited
investor” as defined in Regulation D of the Securities Act and (ii) acquiring the Parent Notes, the Preference Shares and the Accrued Interest Shares, as the case may be, pursuant to Section 3.1, 7.1 and 7.2 hereof, as the case may be, for its
own account, for investment and not with a view to the distribution thereof in violation of any securities laws. 
  
 SECTION 5.4. Authorization. This Agreement has been executed by such Holder or by a duly authorized Person on its behalf with full power and
authority and the execution, delivery and performance hereof and thereof have been duly authorized by all necessary corporate, partnership or limited liability company proceedings. 

 SECTION 5.5. Enforceability. The execution and delivery by such Holder of this Agreement will
result in legally binding obligations enforceable against it in accordance with the respective terms and provisions hereof. 
  
 SECTION 5.6. Private Placement. 
  
 (a) Such Holder understands that (i) the offering and sale of the Parent Notes, the Preference Shares and the Accrued Interest Shares by Parent are
intended to be exempt from registration under the Securities Act pursuant to Section 4(2) and Regulation D thereof and (ii) there is no existing public or other market for the Parent Notes, the Preference Shares or the Accrued Interest Shares.

  
 (b) Such Holder (either alone or together with its advisors)
has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Parent Notes, the Preference Shares and the Accrued Interest Shares, and is capable of bearing
the economic risks of such investment. 
  
 (c) Such Holder
understands that the Parent Notes, the Preference Shares and the Accrued Interest Shares will be issued in a transaction exempt from the registration or qualification requirements of the Securities Act and applicable state securities laws, and that
such securities must be held indefinitely unless a subsequent disposition thereof is registered or qualified under the Securities Act and such laws or is exempt from such registration or qualification. 
  
 (d) Such Holder (A) has been furnished with or has had full access to all of
the information that it considers necessary or appropriate to make an informed investment decision with respect to the Parent Notes, the Preference Shares and the Accrued Interest Shares, and that it has requested from Parent, (B) has had an
opportunity to discuss with management of Parent the intended business and financial affairs of Parent and to obtain information (to the extent Parent possessed such information or could acquire it without unreasonable effort or expense) necessary
to verify any information furnished to it or to which it had access and (C) can bear the economic risk of (x) an investment in the Parent Notes, the Preference Shares and the Accrued Interest Shares indefinitely and (y) a total loss in respect of
such investment, has such knowledge and experience in business and financial matters so as to enable it to understand and evaluate the risks of and form an investment decision with respect to its investment in the Parent Notes, the Preference Shares
and the Accrued Interest Shares, and to protect its own interest in connection with such investment; it being understood that nothing set forth in this Section 5.6(d) shall affect the representations, warranties or other obligations of the Parent,
or the rights and remedies of such Holder, under this Agreement in any way whatsoever. 
  
 ARTICLE VI 
  
 REDEMPTION

  
 SECTION 6.1. Redemption at Option of Holders.

  
 (a) If a Liquidation Event occurs at any time prior to the
Maturity Date, then each Holder shall have the right, at such Holder’s option, to require Parent to redeem all of such Holder’s Parent Notes, or any portion thereof that is an integral multiple of $1,000 principal amount, on the date (the
“Repurchase Date”) that is thirty (30) days after the date of the Parent Notice (as defined in Section 6.1(b) below) of such Liquidation Event (or, if such 30th day is not a Business Day, the next succeeding Business Day) at a
redemption price equal to 100% of the principal amount thereof, together with accrued interest to (but excluding) the Repurchase Date. Upon presentation of any Parent Note redeemed in part only, Parent shall execute and deliver to the Holder
thereof, at the expense of Parent, a new Parent Note or Parent Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Parent Notes so presented. Parent shall deliver to each Holder all notices regarding a
Liquidation Event that are delivered to the shareholders of Parent at the same time as they are delivered to such shareholders. 
  
 (b) On or before the tenth day after the occurrence of a Liquidation Event, Parent shall mail or cause to be mailed to all Holders of record on the date
of the Liquidation Event a notice (the “Parent Notice”) of the occurrence of such Liquidation Event and of the redemption right at the option of the Holders arising as a result thereof; provided, that if Parent issues a Parent
Redemption Notice pursuant to Section 6.2, Parent shall not be obligated to mail a Parent Notice. Such mailing shall be by first class mail. The notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given,
whether or not the Holder receives such 

 
notice. In any case, failure to give such notice by mail or any defect in the notice to the Holder of any Parent Note designated for redemption as a whole or
in part shall not affect the validity of the proceedings for the redemption of any other Parent Note. 
  
 (i) Each Parent Notice shall specify the circumstances constituting the Liquidation Event, the Repurchase Date, that the Holder must
exercise the redemption right on or prior to the close of business on the Repurchase Date (the “Liquidation Event Expiration Time”), that the Holder shall have the right to withdraw any Parent Notes surrendered prior to the
Liquidation Event Expiration Time, a description of the procedure which a Holder must follow to exercise such redemption right and to withdraw any surrendered Parent Notes, the place or places where the Holder is to surrender such Holder’s
Parent Notes, the amount of interest accrued on each Parent Note to the Repurchase Date. 
  
 (ii) No failure of Parent to give the foregoing notices and no defect therein shall limit the Holders’ redemption rights or affect
the validity of the proceedings for the redemption of the Parent Notes pursuant to this Section 6.1. 
  
 (c) For a Parent Note to be so redeemed at the option of the Holder, Parent must receive at its principal executive office such Parent Note with the form
entitled “Option to Elect Repayment Upon A Liquidation Event” on the reverse thereof duly completed, together with such Parent Notes duly endorsed for transfer, on or before the Liquidation Event Expiration Time. 
  
 (d) On or prior to the Repurchase Date, Parent will set aside, segregate and
hold in trust an amount of money sufficient to redeem on the Repurchase Date all the Parent Notes to be redeemed on such date at the appropriate redemption price, together with accrued interest to (but excluding) the Repurchase Date. Payment for
Parent Notes surrendered for redemption (and not withdrawn) prior to the Liquidation Event Expiration Time will be made promptly (but in no event more than five (5) Business Days) following the Repurchase Date either (i) by mailing checks for the
amount payable to the Holders of such Parent Notes entitled thereto as they shall appear on the registry books of Parent or (ii) by wire transfer to an account maintained by such Holders located in the United States. 
  
 (e) Parent will comply with the provisions of Rule 13e-4 and any other tender
offer rules under the Exchange Act to the extent then applicable in connection with the redemption rights of the Holders in the event of a Liquidation Event. 
  
 SECTION 6.2. Optional Redemption by Parent. 
  
 (a) If a Liquidation Event occurs at any time prior to the Maturity Date, then Parent shall have the right, at Parent’s option, to redeem the Parent
Notes, in whole but not in part, on the same date as the Repurchase Date (the Repurchase Date, when referred to with respect to redemption by Parent, the “Redemption Date”) at a redemption price equal to 100% of the principal amount
thereof, together with accrued interest to (but excluding) the Redemption Date. 
  
 (b) In the event Parent shall desire to exercise the right to redeem all of the Parent Notes pursuant to Section 6.2(a), it shall, on or before the tenth (10th) day after the occurrence of a Liquidation Event, mail, or cause to be mailed, to all Holders of record on the date of the Liquidation Event a notice of such
exercise (the “Parent Redemption Notice”). 
  
 (i) The Parent Redemption Notice of redemption shall specify the aggregate principal amount of Parent Notes to be redeemed, the Redemption Date (which shall be a Business Day), the place or places of payment, that
payment will be made upon presentation and surrender of such Parent Notes, that interest accrued to the Redemption Date will be paid as specified in said notice, and that on and after the Redemption Date interest thereon or on the portion thereof to
be redeemed will cease to accrue. Such notice shall also state the current Conversion Rate and the date on which the right to convert such Parent Notes or portions thereof into Common Stock will expire. 
  
 (ii) On or prior to the Business Day next preceding the date
of the Parent Redemption Notice, Parent will set aside, segregate and hold in trust an amount of money in immediately available funds sufficient to redeem on the Redemption Date all the Parent Notes (or portions thereof) so called for redemption
(other than those theretofore surrendered for conversion into Common Stock), together with 

 
accrued interest to, but excluding, the Redemption Date. Parent shall be entitled to retain any interest, yield or gain on amounts set aside, segregated and
held in trust pursuant to this Section 6.2 in excess of amounts required hereunder to pay the redemption price together with accrued interest to, but excluding, the Redemption Date. If any Parent Note called for redemption is converted pursuant
hereto prior to such redemption, any money segregated and held in trust for the redemption of such Parent Note shall be discharged from such trust. 
  
 (c) If a Parent Redemption Notice has been given as above provided, the Parent Notes with respect to which such notice has been given shall, unless
converted into Common Stock pursuant to the terms hereof, become due and payable on the Redemption Date and at the place or places stated in such notice at the applicable redemption price, together with interest accrued to (but excluding) the
Redemption Date, and on and after said date (unless Parent shall default in the payment of such Parent Notes at the redemption price, together with interest accrued to said date) interest on the Parent Notes so called for redemption shall cease to
accrue and, after the close of business on the Business Day next preceding the Redemption Date (unless Parent shall default in the payment of such Parent Notes at the redemption price, together with interest accrued to said date), such Parent Notes
shall cease to be convertible into Common Stock and to be entitled to any benefit or security under this Agreement, and the Holders thereof shall have no right in respect of such Parent Notes except the right to receive the redemption price thereof
and unpaid interest to (but excluding) the Redemption Date. On presentation and surrender of such Parent Notes at a place of payment specified in the Parent Redemption Notice, the said Parent Notes shall be paid and redeemed by Parent at the
applicable redemption price, together with interest accrued thereon to (but excluding) the Redemption Date. 
  
 (i) Notwithstanding the foregoing, Parent shall not redeem any Parent Notes or mail any Parent Redemption Notice during the continuance of
a default in payment of interest or premium, if any, on the Parent Notes. If any Parent Note called for redemption shall not be so paid upon surrender thereof for redemption, the principal and premium, if any, shall, until paid or duly provided for,
bear interest from the date fixed for redemption at the rate borne by the Parent Note and such Parent Note shall remain convertible into Common Stock until the principal and premium, if any, and interest shall have been paid or duly provided for.

  
 (d) In connection with any redemption of Parent Notes under
this Article VI, Parent may arrange for the purchase and conversion of any Parent Notes by an agreement with one or more investment bankers or other purchasers to purchase such Parent Notes by setting aside in trust for the Holders, on or before the
date of the Parent Redemption Notice, an amount not less than the applicable redemption price, together with interest accrued to (but excluding) the Redemption Date, of such Parent Notes. Notwithstanding anything to the contrary contained in this
Article VI, the obligation of Parent to pay the redemption price of such Parent Notes, together with interest accrued to (but excluding) the Redemption Date, shall be deemed to be satisfied and discharged to the extent such amount is so paid by such
purchasers. If such an agreement is entered into, any Parent Notes not duly surrendered for conversion by the Holders thereof may, at the option of Parent, be deemed, to the fullest extent permitted by law, acquired by such purchasers from such
Holders and (notwithstanding anything to the contrary contained in Article VIII) surrendered by such purchasers for conversion, all as of immediately prior to the close of business on the Redemption Date (and the right to convert any such Parent
Notes shall be extended through such time), subject to payment of the above amount on the Redemption Date as aforesaid. 
  
 (e) Parent will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act to the extent then applicable in
connection with the redemption rights of Parent in the event of a Liquidation Event. 
  
 ARTICLE VII 
  
 ISSUANCE OF
COMMON STOCK UPON EXCHANGE 
  
 SECTION 7.1. December
Holders. At the Closing, Parent shall issue to each December Holder the number of shares of Common Stock (the “Preference Shares”) obtained by (a) dividing the sum of (i) the interest accrued on such December Holder’s
Existing December Notes up to December 10, 2003, as set forth across from such December Holder’s name on Schedule A, (ii) 150% of the principal amount of such December Holder’s Existing December Notes as set forth across from such December
Holder’s name on Schedule A and (iii) the amount of interest payable on each such December Holder’s Existing December Note (as amended hereby) from and after 

 
December 10, 2003 until the Closing Date by (b) the lower of (i) the Closing Financing Price and (ii) the average Closing Sale Price for the five Trading
Days immediately preceding the date of public announcement of the transaction contemplated by the Merger Agreement. 
  
 SECTION 7.2. April Holders. At the Closing, Parent shall issue to each April Holder the number of shares of Common Stock (the “Accrued
Interest Shares”) obtained by (a) dividing the sum of (i) the interest accrued on such April Holder’s Existing April Notes up to December 15, 2003, as set forth across from such April Holder’s name on Schedule B plus (ii) the
amount of interest payable on each such April Holder’s Existing April Note (as amended hereby) from and after December 15, 2003 until the Closing Date by (b) the lower of (i) the Closing Financing Price and (ii) the average Closing Sale Price
for the five Trading Days immediately preceding the date of public announcement of the transaction contemplated by the Merger Agreement. 
  
 ARTICLE VIII 
  
 CONVERSION 
  
 SECTION 8.1. Conversion Privilege; Restrictive Legends. 
  
 (a) At any time following the issuance of the Parent Notes pursuant to Section 3.1, a Holder of a Parent Note may convert such Parent Note into Common Stock at any time upon the satisfaction of the requirements set forth herein. Upon
conversion in accordance with the terms of this Section 8.1, the Holder will receive the number of shares of Common Stock equal to the Conversion Rate per $1,000 principal amount of Parent Notes surrendered for conversion. The initial Conversion
Rate is the number of shares of Common Stock obtained by dividing $1,000 by the Initial Conversion Price. The Conversion Rate is subject to adjustment in accordance with Sections 8.6 through 8.12. 
  
 (b) A Holder may convert a portion of the principal of such Parent Note if
the portion is $1,000 principal amount or an integral multiple of $1,000 principal amount. Provisions of this Agreement that apply to conversion of all of a Parent Note also apply to conversion of a portion of it. A Holder may convert the entire
principal amount of all Parent Notes held by such Holder (the “Entire Principal Amount”), notwithstanding the fact that such amount is not an integral multiple of $1,000 (such amount in excess of such integral multiple, the
“Excess Amount”). In connection with the conversion of any Holder’s Entire Principal Amount, such Holder will be entitled to convert the Excess Amount into the number of shares of Common Stock obtained by dividing the Excess
Amount by the then-effective Conversion Price. 
  
 (c) From and
after the 366th day following the Closing Date, if the average of the Closing Sale Prices for any fifteen (15)
consecutive Trading Days (the “Pricing Period”) is greater than 150% of the then-effective Conversion Price (each such occurrence hereinafter referred to as a “Pricing Event”), then Parent shall have the right to
compel the Holders to convert all of the outstanding principal amount under the Parent Notes in accordance with the terms hereof on or prior to the date (the “Mandatory Conversion Date”) which is fifteen (15) Trading Days following
the Holder’s receipt of a Mandatory Conversion Notice (as defined below), provided, that (A) Parent may exercise this right only by delivering to the Holder, within fifteen (15) Trading Days following the day on which a Pricing Event occurs, a
written notice (the “Mandatory Conversion Notice”) electing to compel such conversion pursuant to this Section 8.1(c), (B) at all times during the applicable Pricing Period up to and including the Mandatory Conversion Date, the
resale of all Registrable Securities (as defined in the Registration Rights Agreement) is covered by an effective registration statement in accordance with the terms of the Registration Rights Agreement and such registration statement is not subject
to any stop orders and (C) Parent’s right to send a Mandatory Conversion Notice must be exercised with respect to all Holders. The foregoing shall not affect the Holder’s right to convert any portion of a Parent Note pursuant to Section
8.1(a) above at any time and from time to time before or after any Pricing Event. Such mandatory conversion shall be subject to and governed by all the provisions relating to voluntary conversion of the Parent Notes contained herein. 
  
 (d) Any shares issued upon conversion of a Parent Note shall bear the Private
Placement Legend until after the second anniversary of the later of the Closing Date and the last date on which Parent or any Affiliate of Parent was the owner of such shares or the Parent Note (or any predecessor security) from which such shares
were converted (or such shorter period of time as permitted by Rule 144(k) under the Securities Act or any successor provision thereunder) (or such longer period of time as may be required under the Securities Act or applicable state securities laws
in the opinion of counsel for Parent, unless otherwise agreed by Parent and the Holder thereof). 

 (e) To convert a Parent Note, a Holder must (1) complete and sign the conversion notice, with appropriate
signature guarantee, on the back of the Parent Note, (2) surrender the Parent Note to a Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the Conversion Agent and (4) pay any transfer or similar tax if
required. 
  
 SECTION 8.2. Conversion Procedure.

  
 (a) To convert a Parent Note, a Holder must satisfy the
requirements of this Section 8. The date on which the Holder satisfies all those requirements is the conversion date. As soon as practicable, and in any event within ten (10) days following the conversion date, Parent shall deliver to the Holder a
certificate for the number of full shares of Common Stock issuable upon the conversion and a check in lieu of any fractional share. The person in whose name the certificate is registered shall be treated as a stockholder of record on and after the
conversion date. 
  
 (b) Except as described below, no payment or
adjustment will be made for accrued interest on, or liquidated damages with respect to, a converted Parent Note or for dividends on any Common Stock issued on or prior to conversion. When a Holder surrenders a Parent Note for conversion, all accrued
interest on such Parent Note shall be added to such Holder’s principal amount of such Parent Notes and shall be treated for all purposes of this Article VIII as additional principal amount. 
  
 (c) If a Holder converts more than one Parent Note at the same time, the
number of full shares issuable upon the conversion shall be based on the total principal amount of the Parent Notes converted. 
  
 (d) Upon surrender of a Parent Note that is converted in part, Parent shall issue to the Holder a new Parent Note equal in principal amount to the
unconverted portion of the Parent Note surrendered. 
  
 (e) If the
last day on which a Parent Note may be converted is a Legal Holiday in the place where Parent’s principal executive office is located, the Parent Note may be surrendered to Parent at its principal executive offices on the next succeeding day
that is not a Legal Holiday. 
  
 SECTION 8.3. Fractional
Shares. Parent will not issue fractional shares of Common Stock upon conversion of Parent Notes and instead will deliver a check in an amount equal to the value of such fraction computed on the basis of the Closing Sale Price. 
  
 SECTION 8.4. Taxes on Conversion. If a Holder converts its Parent
Note, Parent shall pay any documentary, stamp or similar issue or transfer tax due on the issue of shares of Common Stock upon the conversion. However, the Holder shall pay any such tax which is due because the shares are issued in a name other than
the Holder’s name. 
  
 SECTION 8.5. Company to Provide
Stock. 
  
 (a) Parent shall reserve out of its authorized but
unissued Common Stock or Common Stock held in its treasury enough shares of Common Stock to permit the conversion of all of the Parent Notes. 
  
 (b) All shares of Common Stock which may be issued upon conversion of the Parent Notes shall be validly issued, fully paid and non-assessable and shall be
free of preemptive rights and free of any lien or adverse claim created by Parent. 
  
 (c) Parent shall comply with all securities laws regulating the offer and delivery of shares of Common Stock upon conversion of Parent Notes and shall list such shares on each national securities exchange or automated
quotation system on which the Common Stock is listed. 
  
 SECTION
8.6. Adjustment of Conversion Rate. The Conversion Rate shall be subject to adjustment from time to time as follows: 
  
 (a) In case Parent shall (1) pay a dividend in shares of Common Stock to all holders of Common Stock, (2) make a distribution in shares of Common Stock to
all holders of Common Stock, (3) subdivide the outstanding shares of Common Stock into a greater number of shares of Common Stock or (4) combine the outstanding shares of Common Stock into a smaller number of shares of Common Stock, the Conversion
Rate in effect immediately prior to such action shall be adjusted so that the holder of any Parent Note thereafter surrendered for conversion shall be entitled to receive the number of shares of Common Stock which he would have owned 

 
immediately following such action had such Parent Notes been converted immediately prior thereto. Any adjustment made pursuant to this Section 8.6(a) shall
become effective immediately after the record date in the case of a dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision or combination. 
  
 (b) In case Parent shall issue rights or warrants to all or substantially all
holders of Common Stock, as the case may be, entitling them, for a period commencing on the record date for the determination of holders of Common Stock entitled to receive such rights or warrants and expiring not more than sixty (60) days after
such record date, to subscribe for or purchase shares of Common Stock (or securities convertible into Common Stock), at a price per share less than the then current market price (as determined pursuant to Section 8.6(g)) of Common Stock on such
record date, the Conversion Rate shall be increased by multiplying the Conversion Rate in effect immediately prior to such record date by a fraction of which the numerator shall be the number of shares of Common Stock outstanding on such record
date, plus the number of shares of Common Stock so offered for subscription or purchase, and the denominator of which shall be the number of shares of Common Stock outstanding at the close of business on such record date plus the number of shares of
Common Stock which the aggregate of the offering price of the total number of shares of Common Stock so offered for subscription or purchase would purchase at such current market price. Such adjustments shall become effective immediately after such
record date. 
  
 (c) In case Parent shall dividend or distribute
to all or substantially all holders of Common Stock shares of Capital Stock of Parent other than Common Stock, evidences of indebtedness or other assets (other than cash dividends), or shall dividend or distribute to all or substantially all holders
of Common Stock rights or warrants to subscribe for securities (other than those referred to in Section 8.6(b)), then in each such case the Conversion Rate shall be increased by multiplying the Conversion Rate in effect immediately prior to the
close of business on the record date for the determination of shareholders entitled to such distribution by a fraction of which the numerator shall be the current market price of Common Stock (as determined pursuant to Section 8.6(g)), on such date
and the denominator shall be such current market price less the fair market value (as determined by the Board of Directors) on such date of the portion of the evidences of indebtedness, shares of Capital Stock, cash and other assets to be
distributed or of such subscription rights or warrants applicable to one share of Common Stock, such increase to become effective immediately prior to the opening of business on the day following such record date. Notwithstanding the foregoing, in
the event that Parent shall distribute rights or warrants (other than those referred to in Section 8.6(b)) (“Rights”) pro rata to holders of Common Stock, Parent may, in lieu of making any adjustment pursuant to this Section 8.6(c),
make proper provision so that each Holder of a Parent Note who converts such Parent Note (or any portion thereof) after the record date for such distribution and prior to the expiration or redemption of the Rights shall be entitled to receive upon
such conversion, in addition to the shares of Common Stock issuable upon such conversion (the “Conversion Shares”), a number of Rights to be determined as follows: (i) if such conversion occurs on or prior to the date for the
distribution to the holders of Rights of separate certificates evidencing such Rights (the “Distribution Date”), the same number of Rights to which a holder of a number of shares of Common Stock equal to the number of shares of
Conversion Shares is entitled at the time of such conversion in accordance with the terms and provisions of and applicable to the Rights; and (ii) if such conversion occurs after the Distribution Date, the same number of Rights to which a holder of
the number of shares of Common Stock into which the principal amount of the Parent Note so converted was convertible immediately prior to the Distribution Date would have been entitled on the Distribution Date in accordance with the terms and
provisions of and applicable to the Rights. 
  
 In the event that
Parent implements a stockholders’ rights plan after the date hereof, Parent shall provide that the Holders will receive, in addition to Common Stock, the rights described therein upon conversion of the Parent Notes (whether or not the rights
have separated from the Common Stock prior to the time of conversion), subject to the limitations set forth in the stockholders’ rights plan. Any distribution of rights or warrants pursuant to a stockholders’ rights plan complying with the
requirements set forth in the two preceding sentences of this paragraph shall not constitute a distribution of rights or warrants pursuant to this Section 8.6(c). 
  
 (d) In case Parent shall, by dividend or otherwise, at any time make a distribution (the “Triggering
Distribution,” and the amount of the Triggering Distribution, together with the sum of (w) and (x) below, the “Combined Amount”) to all or substantially all holders of its Common Stock of cash (including any distributions
of cash out of current or retained earnings of Parent, but excluding any cash that is distributed as part of a distribution requiring a Conversion Rate adjustment pursuant to subsection (c) above or subsection (e) below) in an aggregate amount that,
together with the sum of (w) the aggregate amount of any cash and the fair market value (as determined in good faith by the Board of Directors), as of the expiration of the tender or exchange offer referred to below, of 

 
any other consideration payable in respect of any tender or exchange offer by Parent or a Subsidiary for all or any portion of the Common Stock consummated
within the twelve (12) months preceding the date of payment of the Triggering Distribution and in respect of which no Conversion Rate adjustment has been made pursuant to this Section 8.6, and (x) the aggregate amount of all other cash dividends or
distributions to all or substantially all holders of Common Stock made within the twelve (12) months preceding the date of payment of the Triggering Distribution and in respect of which no Conversion Rate adjustment has been made pursuant to this
Section 8.6, exceeds ten percent (10%) of the product of the current market price per share (as determined pursuant to Section 8.6(g)) of the Common Stock on the close of business, New York City time, on the Business Day (the “Distribution
Declaration Date”) immediately preceding the day on which the Triggering Distribution is declared by Parent and the number of shares of Common Stock outstanding on the Distribution Declaration Date (excluding shares held in the treasury of
Parent), the Conversion Rate shall be adjusted by multiplying the Conversion Rate in effect immediately prior to the effectiveness of the Conversion Rate adjustment contemplated by this subsection (d) by a fraction (y) the numerator of which shall
be such current market price per share of Common Stock and (z) the denominator of which shall be (I) such current market price per share of Common Stock less (II) the number obtained by dividing the Combined Amount by such number of shares of Common
Stock outstanding. Such adjustment shall become effective immediately prior to the opening of business on the day following the Distribution Declaration Date. 
  

(e) In case a tender or exchange offer made by Parent or any of its Subsidiaries for all or any portion of the Common Stock shall expire and such
tender offer or exchange offer (as amended upon the expiration thereof) shall require the payment to stockholders (based on the acceptance (up to any maximum specified in the terms of the tender offer or exchange offer) of Purchased Shares (as
defined below)) of an aggregate consideration having a fair market value (as determined by the Board of Directors) that, combined together with: 
  

	 	(1)	the aggregate of the cash plus the fair market value (as determined by the Board of Directors), as of the expiration of such tender or exchange offer, of consideration payable in
respect of any other tender offers or exchange offers by Parent or any of its Subsidiaries for all or any portion of the Common Stock expiring within the twelve (12) months preceding the expiration of such tender offer or exchange offer and in
respect of which no adjustment pursuant to this Section 8.6 has been made, and 

  

	 	(2)	the aggregate amount of any dividends or distributions to all or substantially all holders of Parent’s Common Stock made exclusively in cash within the twelve (12) months
preceding the expiration of such tender offer or exchange offer and in respect of which no adjustment pursuant to this Section 8.6 has been made, 

  

exceeds ten percent (10%) of the product of the current market price per share (as determined pursuant to Section 8.6(g)) as of the last time
(the “Expiration Time”) tenders or exchanges could have been made pursuant to such tender or exchange offer (as it may be amended) and the number of shares of Common Stock outstanding (including any tendered shares or exchanged
shares) at the Expiration Time, then, and in each such case, immediately prior to the opening of business on the day after the date of the Expiration Time, the Conversion Rate shall be adjusted by multiplying the Conversion Rate in effect
immediately prior to the close of business on the date of the Expiration Time by a fraction: 
  

	 	(i)	the numerator of which shall be the sum of (x) the fair market value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up to
any maximum specified in the terms of the tender offer or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the
“Purchased Shares”) and (y) the product of the number of shares of Common Stock outstanding (less any Purchased Shares) at the Expiration Time and the current market price of the Common Stock as of the Expiration Time; and

  

	 	(ii)	the denominator of which shall be the number of shares of Common Stock outstanding (including any tendered or exchanged shares) at the Expiration Time multiplied by the current
market price of the Common Stock as of the Expiration Time. 

 Such adjustment (if any) shall become effective immediately prior to the opening of business on the day
following the Expiration Time. In the event that Parent is obligated to purchase shares pursuant to any such tender offer or exchange offer, but Parent is permanently prevented by applicable law from effecting any such purchases or all such
purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if such tender offer or exchange offer had not been made. If the application of this Section 8.6(e) to any tender offer or
exchange offer would result in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer or exchange offer under this Section 8.6(e). 
  
 (f) In addition to the foregoing adjustments in subsections (a), (b), (c), (d) and (e) above, Parent, from time to time and
to the extent permitted by law, may increase the Conversion Rate by any amount for at least twenty (20) days or such longer period as may be required by law, if the Board of Directors of Parent has made a determination, which determination shall be
conclusive, that such increase would be in the best interests of Parent, provided that the then effective Conversion Price is not less than the par value of a share of Common Stock. Parent shall cause notice of such increase to be mailed to each
Holder at such Holder’s address as the same appears on the registry books of the Registrar, at least fifteen (15) days prior to the date on which such increase commences. Such Conversion Rate increase shall be irrevocable during such period.

  
 (g) For the purpose of any computation under subsections (a),
(b), (c), (d) and (e) above of this Section 8.6, the current market price per share of Common Stock on the date fixed for determination of the stockholders entitled to receive the issuance or distribution requiring such computation (the
“Determination Date”) shall be deemed to be the average of the Closing Sale Prices for the ten (10) consecutive Trading Days immediately preceding the Determination Date; provided, however, that (i) if the “ex” date for
any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Rate pursuant to subsection (a), (b), (c), (d) or (e) above occurs on or after the tenth Trading Day prior to the
Determination Date and prior to the “ex” date for the issuance or distribution requiring such computation, the Closing Sale Price for each Trading Day prior to the “ex” date for such other event shall be adjusted by multiplying
such Closing Sale Price by the reciprocal of the fraction by which the Conversion Rate is so required to be adjusted as a result of such other event, (ii) if the “ex” date for any event (other than the issuance or distribution requiring
such computation) that requires an adjustment to the Conversion Rate pursuant to subsection (a), (b), (c), (d) or (e) above occurs on or after the “ex” date for the issuance or distribution requiring such computation and on or prior to the
Determination Date, the Closing Sale Price for each Business Day on and after the “ex” date for such other event shall be adjusted by multiplying such Closing Sale Price by the same fraction by which the Conversion Rate is so required to
be adjusted as a result of such other event, and (iii) if the “ex” date for the issuance or distribution requiring such computation is on or prior to the Determination Date, after taking into account any adjustment required pursuant to
clause (i) or (ii) of this proviso, the Closing Sale Price for each Trading Day on and after the “ex” date shall be adjusted by adding thereto the amount of any cash and the fair market value (as determined by the Board of Directors in a
manner consistent with any determination of such value for the purposes of this Section 8.6) of the evidences of indebtedness, shares of Capital Stock or other securities or assets being distributed (in the distribution requiring such computation)
applicable to one share of Common Stock as of the close of business on the day before such “ex” date. For the purpose of any computation under subsection (e) of this Section 8.6, the current market price per share of Common Stock at the
expiration time for the tender offer requiring such computation shall be deemed to be the average of the Closing Sale Price for the ten consecutive Trading Days commencing on the Business Day immediately following the expiration time of such tender
offer (the “Commencement Date”); provided, however, that if the “ex” date for any event (other than the tender offer requiring such computation) that requires an adjustment to the Conversion Rate pursuant to subsection (a), (b),
(c), (d) or (e) above occurs on or after the expiration time for the tender offer requiring such computation and prior to the day in question, the Closing Sale Price for each Trading Day on or after to the “ex” date for such other event
shall be adjusted by multiplying such Closing Sale Price by the same fraction by which the Conversion Rate is so required to be adjusted as a result of such other event. For purposes of this subsection, the term “ex” date, (i) when used
with respect to any issuance or distribution, means the first date on which the Common Stock trades regular way on the relevant exchange or in the relevant market from which the Closing Sale Price was obtained without the right to receive such
issuance or distribution, (ii) when used with respect to any subdivision or combination of shares of Common Stock, means the first date on which the Common Stock trades regular way on such exchange or in such market after the time at which such
subdivision or combination becomes effective, and (iii) when used with respect to any tender offer means the first date on which the Common Stock trades regular way on such exchange or in such market after the expiration time of such tender offer
(as it may be amended or extended). 

 SECTION 8.7. No Adjustment. 
  
 (a) No adjustment in the Conversion Rate shall be required until cumulative adjustments amount to one percent (1%) or more
of the Conversion Price as last adjusted; provided, however, that any adjustments which by reason of this Section 8.7 are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under
this Article VIII shall be made to the nearest cent or to the nearest one-hundredth of a share, as the case may be. 
  
 (b) If any rights, options or warrants issued by Parent as described in Section 8.6 are only exercisable upon the occurrence of certain triggering events,
then the Conversion Rate will not be adjusted as provided in Section 8.6 until the earliest of such triggering event occurs. Upon the expiration or termination of any rights, options or warrants without the exercise of such rights, options or
warrants, the Conversion Rate then in effect shall be adjusted immediately to the Conversion Rate which would have been in effect at the time of such expiration or termination had such rights, options or warrants, to the extent outstanding
immediately prior to such expiration or termination, never been issued. 
  
 (c) No adjustment need be made for a transaction referred to in this Article VIII if Holders are to participate in the transaction without conversion on a basis and with notice that the Board of Directors determines in good faith to be fair
and appropriate in light of the basis and notice on which holders of Common Stock participate in the transaction. 
  
 SECTION 8.8. Other Adjustments. In the event that, as a result of an adjustment made pursuant to Section 8.6 hereof, the Holder of any Parent Note
thereafter surrendered for conversion shall become entitled to receive any shares of Capital Stock other than shares of Common Stock, thereafter the Conversion Rate of such other shares so receivable upon conversion of any Parent Note shall be
subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to Common Stock contained in this Article VIII. 
  
 SECTION 8.9. Adjustments for Tax Purposes. Parent may make such increases in the Conversion Rate, in addition to
those required by Section 8.6 hereof, as it determines to be advisable in order that any stock dividend, subdivision of shares, distribution or rights to purchase stock or securities or distribution of securities convertible into or exchangeable for
stock made by Parent or to its stockholders will not be taxable to the recipients thereof. 
  
 SECTION 8.10. Notice of Adjustment. Whenever the Conversion Rate is adjusted, Parent shall promptly mail to Holders at the addresses appearing on the Registrar’s books a notice of the adjustment. The
certificate shall be conclusive evidence of the correctness of such adjustment. 
  
 SECTION 8.11. Notice of Certain Transactions. 
  
 In the event that: 
  

	 	(a)	Parent takes any action which would require an adjustment in the Conversion Rate; 

  

	 	(b)	Parent takes any action that would require an amendment pursuant to Section 8.12; or 

  

	 	(c)	there is a dissolution or liquidation of Parent; 

  
 a Holder of a Parent Note may wish to convert such Parent Note into shares of Common Stock prior to the record date for or the effective date of the
transaction so that he may receive the rights, warrants, securities or assets which a holder of shares of Common Stock on that date may receive. Therefore, Parent shall mail to Holders at the addresses appearing on Parent’s books and the
Stockholder’s Representative a notice stating the proposed record or effective date, as the case may be, of any transaction referred to in clause (a), (b) or (c) of this Section 8.11. Parent shall mail such notice at least fifteen (15) days
before such date; however, failure to mail such notice or any defect therein shall not affect the validity of any transaction referred to in clause (a), (b) or (c) of this Section 8.11, provided, however that the Holders shall continue to have the
right to convert until the date which is fifteen (15) days after Parent mails such notice. 

 SECTION 8.12. Effect of Reclassifications, Consolidations, Mergers, Binding Share Exchanges or Sales
on Conversion Privilege. 
  
 (a) If any of the following
shall occur, namely: (i) any reclassification or change in the Common Stock issuable upon conversion of Parent Notes (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a
subdivision or combination), (ii) any consolidation, merger or binding share exchange to which Parent is a party other than a merger in which Parent is the continuing corporation and which does not result in any reclassification of, or change (other
than a change in name, or par value, or from par value to no par value, or from no par value to par value or as a result of a subdivision or combination) in, the Common Stock, or (iii) any sale or conveyance of all or substantially all of the
property or business of Parent as an entirety, then Parent or such successor or purchasing corporation, as the case may be, shall, as a condition precedent to such reclassification, change, consolidation, merger, binding share exchange, sale or
conveyance, execute and deliver to the Holders an amendment to this Agreement providing that the Holder of each Parent Note then outstanding shall have the right to convert such Parent Note into the kind and amount of shares of stock and other
securities and property (including cash) receivable upon such reclassification, change, consolidation, merger, binding share exchange, sale or conveyance by a holder of the number of shares of Common Stock, deliverable upon conversion of such Parent
Note immediately prior to such reclassification, change, consolidation, merger, binding share exchange, sale or conveyance. Such amendment shall provide for adjustments of the Conversion Rate which shall be as nearly equivalent as may be practicable
to the adjustments of the Conversion Rate provided for in this Article VIII. The foregoing, however, shall not in any way affect the right a Holder of a Parent Note may otherwise have, pursuant to clause (ii) of the last sentence of the first
paragraph of Section 8.6(c) hereof, to receive Rights upon conversion of a Parent Note. If, in the case of any such consolidation, merger, binding share exchange, sale or conveyance, the stock or other securities and property (including cash)
receivable thereupon by a holder of Common Stock includes shares of stock or other securities and property of a corporation other than the successor or purchasing corporation, as the case may be, in such consolidation, merger, binding share
exchange, sale or conveyance, then such amendment shall also be executed by such other corporation and shall contain such additional provisions to protect the interests of the Holders as the Board of Directors shall reasonably consider necessary by
reason of the foregoing. The provision of this Section 8.12 shall similarly apply to successive consolidations, mergers, binding share exchanges, sales or conveyances. 
  
 ARTICLE IX 
  
 COVENANTS OF PARENT AND THE HOLDERS 
  
 SECTION 9.1. Covenants of Parent 
  
 9.1.1. Periodic Information. Parent shall, upon written request, provide to any Holder or beneficial owner of Parent Notes or
prospective purchaser of Parent Notes that so requests, the information required to be delivered pursuant to Rule 144A(d)(4) until such time as the Parent Notes and the underlying Common Stock have been registered by Parent for resale under the
Securities Act pursuant to the Registration Rights Agreement. In addition, Parent will furnish such Rule 144A(d)(4) information if, at any time while the Parent Notes or the Common Stock issuable upon conversion of the Parent Notes are restricted
securities within the meaning of the Securities Act, Parent is not subject to the informational requirements of the Exchange Act. 
  
 9.1.2. Legends. So long as applicable, each Parent Note shall be stamped or otherwise imprinted with a legend in the following form
(in addition to any legend required under applicable state securities laws): 
  
 “THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS NOTE MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OTHER THAN PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.” 

 After the above requirement for a legend is no longer applicable because the Parent Notes are freely transferable under
the Securities Act, Parent shall remove such legend upon request from a Holder of such Parent Notes, if outside counsel for such Holder reasonably determines that the transfer of such Parent Notes is no longer restricted by the Securities Act and
outside counsel for Parent reasonably concurs in such determination. 
  
 9.1.3. Maintenance of Corporate Existence. Subject to Article X, Parent will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and the corporate
existence of each of its Subsidiaries in accordance with the respective organizational documents of each Subsidiary and the rights (charter and statutory), licenses and franchises of Parent and its Subsidiaries; provided, however, that Parent shall
not be required to preserve any such right, license or franchise, or the corporate existence of any Subsidiary, if in the good faith reasonable judgment of the Board of Directors (i) such preservation or existence is not material to the conduct of
business of Parent and (ii) the loss of such right, license or franchise or the dissolution of such Subsidiary does not have a material adverse impact on the Holders. 
  
 9.1.4. Limitation on Indebtedness. Parent shall not incur, create, issue, assume, guarantee or
otherwise become liable for any Indebtedness, other than Permitted Indebtedness (as defined below), having a maturity date prior to six (6) months after the Maturity Date without the consent of the Required Holders, such consent not to be
unreasonably withheld. “Permitted Indebtedness” means: (i) Indebtedness set forth on Parent’s balance sheet dated September 27, 2003, as filed with Parent’s quarterly report on Form 10-Q for its quarter ended September 27, 2003;
(ii) Indebtedness set forth on the Company’s balance sheet dated September 30, 2003; (iii) Indebtedness secured by liens described in clause (iv) of the definition of Permitted Liens below; and (iv) other Indebtedness of the Company in an
aggregate principal amount at any time outstanding not to exceed $5 million. 
  
 9.1.5. Creation of Liens. Until the full satisfaction of the Parent Notes, other than Permitted Liens (as defined below), Parent will not create or permit to be created any liens in or on Parent’s tangible
or intangible assets. “Permitted Liens” means: (i) liens securing equipment indebtedness; (ii) liens imposed by law, such as carriers’, warehousemen’s, materialmen’s and mechanics’ liens, or liens arising out of
judgments or awards against Parent with respect to which Parent at the time shall currently be prosecuting an appeal or proceedings for review; (iii) liens for taxes not yet subject to penalties for nonpayment and liens for taxes the payment of
which is being contested in good faith and by appropriate proceedings and for which, to the extent required by generally accepted accounting principles then in effect, proper and adequate book reserves relating thereto are established by Parent;
(iv) liens (A) upon or in any equipment acquired or held by Parent to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing the acquisition of such equipment, or (B) existing on such equipment at
the time of its acquisition, provided that the lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such equipment and other equipment financed by the holder of such lien; (v) liens consisting of leases
or subleases and licenses and sublicenses granted to others in the ordinary course of Parent’s business not interfering in any material respect with the business of Parent and any interest or title of a lessor or licensor under any lease or
license, as applicable; (vi) liens to secure any license granted by Parent, provided, that such lien is confined solely to the property that is the subject of the license; (vii) liens incurred or deposits made in the ordinary course of Parent’s
business in connection with worker’s compensation, unemployment insurance, social security and other like laws; (viii) liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in
connection with the importation of goods; and (ix) liens to which the Required Holders expressly consent to in writing. 
  
 SECTION 9.2. Covenant of the Holders. 
  
 9.2.1. Certain Transactions. Each Holder agrees that from the date hereof and so long as Holder holds any Parent Notes, such Holder shall not (i)
engage in short sales of the Common Stock or (ii) directly or indirectly take, make, establish, increase or maintain any short position in the Common Stock by any means including, without limitation, any derivative or synthetic transaction
(including, without limitation, any option, put, call or similar agreement). 

 ARTICLE X 
  
 SUCCESSORS 
  
 SECTION 10.1. When Company May Merge, etc. Parent shall not consolidate with, or merge with or into, or sell, convey, transfer, lease or otherwise
dispose of all or substantially all of its properties and assets to, another person (whether in a single or series of related transactions) unless (i) such person assumes all the obligations of Parent under the Parent Notes and this Agreement and
(ii) immediately after giving effect to the transaction, no Default or Event of Default shall exist. 
  
 SECTION 10.2. Successor Substituted. Upon any consolidation or merger or sale, conveyance, transfer, lease, or other disposition of all or
substantially all of the assets of Parent in accordance with Section 10.1, the successor person formed by such consolidation or into which Parent is merged or to which such sale, conveyance, transfer, lease, or other disposition is made shall
succeed to, and, except in the case of a lease, be substituted for, and may exercise every right and power of, and shall assume every duty and obligation of, Parent under this Agreement with the same effect as if such successor had been named as
Parent herein. When the successor assumes all obligations of Parent hereunder, except in the case of a lease, all obligations of the predecessor shall terminate. 
  
 ARTICLE XI 
  
 CONDITIONS PRECEDENT TO CLOSING 
  
 SECTION 11.1. Conditions to Parent’s Obligations. The obligations of Parent with respect to the Holders required to be performed on the
Closing Date shall be subject to the satisfaction or waiver in writing, at or prior to such Closing, of the following conditions: 
  
 (a) The representations and warranties of each Holder contained in this Agreement shall be true and correct, in each case on and as of the date hereof and
on and as of such Closing Date, as if made on and as of such Closing Date. 
  
 (b) No provision of any Applicable Law, injunction, order or decree of any Governmental Authority shall be in effect which has the effect of making the Transactions illegal or shall otherwise restrain or prohibit the
consummation of the Transactions. 
  
 (c) The Effective Time shall
have occurred. 
  
 (d) The Closing Financing shall have occurred.

  
 (e) The Holders shall have delivered the Existing Notes to
Parent. 
  
 SECTION 11.2. Conditions to Holders’
Obligations. The obligations of each Holder required to be performed on the Closing Date shall be subject to the satisfaction or waiver in writing of the following condition: 
  
 (a) The representations and warranties made by Parent in this Agreement shall be true and correct as of the Closing Date
except (i) that those representations and warranties that address matters only as of a particular date shall remain true and correct as of such date (subject to the following clauses (ii) and (iii)), (ii) for changes contemplated by this Agreement
and the Merger Agreement, and (iii) where the failure of such representations and warranties to be so true and correct (without giving effect to any materiality qualifications contained in such representations and warranties) would not be reasonably
likely to have a Parent Material Adverse Effect. 
  
 (b) On such
Closing Date, no provision of any Applicable Law, injunction, order or decree of any Governmental Authority shall be in effect which has the effect of making the Transactions illegal or shall otherwise restrain or prohibit the consummation of the
Transactions. 
  
 (c) The Effective Time shall have occurred.

  
 (d) The Closing Financing shall have occurred. 

 (e) Parent shall have delivered the Parent Notes, the Preference Shares and the Accrued Interest Shares,
as applicable, to the Holders. 
  
 (f) Each Holder shall have
received the opinion of Ropes & Gray LLP in the form attached hereto as Exhibit B. 
  
 ARTICLE XII 
  
 DEFAULTS

  
 SECTION 12.1. Events of Default. Each of the following
events is herein referred to as an “Event of Default”: 
  
 (a) Payment. Parent shall fail to make any payment in respect of the principal of, or any interest or fee on or in respect of, any of the Note Obligations owed by it as the same shall become due and payable, whether at maturity or by
acceleration or otherwise. 
  
 (b) Covenant Compliance.
Parent shall fail to perform or observe any of the other provisions of the Note Documents required to be performed or complied with by it and such failure continues for a period of thirty (30) days after written notice thereof is given by the
Required Holders to Parent. 
  
 (c) Representations and
Warranties. Any representation or warranty of or with respect to Parent in this Agreement shall not be true and correct as of the Closing Date except (i) for changes contemplated by this Agreement and the Merger Agreement, and (ii) where the
failure of such representations and warranties to be so true and correct (without giving effect to any materiality qualifications contained in such representations and warranties) would not be reasonably likely to have a Parent Material Adverse
Effect. 
  
 (d) Bankruptcy. Parent or any of its
Subsidiaries shall: 
  
 (i) commence a voluntary
case under the Bankruptcy Code or authorize, by appropriate proceedings of its board of directors or other governing body, the commencement of such a voluntary case; 
  
 (ii) have filed against it a petition commencing an involuntary case under the Bankruptcy Code which shall
not have been dismissed within 60 days after the date on which such petition is filed; or file an answer or other pleading within such 60-day period admitting or failing to deny the material allegations of such a petition or seeking, consenting to
or acquiescing in the relief therein provided; 
  
 (iii) have entered against it an order for relief in any involuntary case commenced under the Bankruptcy Code; 
  
 (iv) seek relief as a debtor under any applicable law, other than the Bankruptcy Code, of any jurisdiction relation to the liquidation or
reorganization of debtors or to the modification or alteration of the rights of creditors, or consent to or acquiesce in such relief; 
  
 (v) have entered against it an order by a court of competent jurisdiction (A) finding it to be bankrupt or insolvent, (B) ordering or
approving its liquidation, reorganization or any modification or alteration of the rights of its creditors or (C) assuming custody of, or appointing a receiver or other custodian for, all or a substantial portion of its property; or 
  
 (vi) make an assignment for the benefit of, or enter into a
composition with, its creditors, or appoint, or consent to the appointment of, or suffer to exist a receiver or other custodian for, all or a substantial portion of its property. 
  
 (e) Judgment. Parent or any of its Subsidiaries shall have a judgment entered against it in an amount of at least $1
million, and such judgment shall remain undismissed for a period of ninety (90) consecutive days. 
  
 SECTION 12.2. Certain Actions Following an Event of Default. If any one or more Events of Default shall occur and be continuing, then in each and
every such case: 
  
 (a) Acceleration. The Note
Obligations then outstanding shall become immediately due and payable. 

 (b) Exercise of Rights. The Holders may proceed to protect and enforce their rights by suit in
equity, action at law and/or other appropriate proceeding, either for specific performance of any covenant or condition contained in this Agreement or the Parent Notes. 
  
 (c) Cumulative Remedies. To the extent not prohibited by applicable law which cannot be waived, all of the
Holders’ rights hereunder and under the Parent Notes shall be cumulative. 
  
 SECTION 12.3. Waivers. Parent hereby waives to the extent not prohibited by applicable law: 
  
 (a) all presentments, demands for performance, notices of nonperformance (except to the extent required by the provisions of this Agreement or the Parent
Notes), protests, notices of protest and notices of dishonor; 
  
 (b) any requirement of diligence or promptness on the part of any Holder in the enforcement of its rights under this Agreement or the Parent Notes; and 
  

(c) any and all notices of every kind and description which may be required to be given by any statute or rule of law. 
  
 ARTICLE XIII  
  
 SUBORDINATION 
  
 SECTION 13.1. Subordination. To the extent there is any conflict
between the provisions of this Section 13 and the other provisions of this Agreement, the provisions of this Section 13 shall control. The following provisions shall apply until such time as the Closing occurs. 
  
 13.1.1 Each Holder hereby subordinates to Parent any security interest or
lien that such Lender may have or in the future obtain in any property of the Company. Notwithstanding the respective dates of attachment or perfection of the security interest of each Holder and the security interest of Parent, the security
interest of Parent in the property of the Company shall at all times be prior to the security interest of each Holder. Nothing in this Section 13 shall be construed as permitting any Holder to take a security interest or lien in any property of the
Company. 
  
 13.1.2 All indebtedness hereunder or pursuant to the
Existing December Notes and Existing April Notes (and any refinancings or replacements thereof) (the “Subordinated Debt”) is subordinated in right of payment to all obligations of the Company to Parent under the Parent Promissory Note,
together with all costs of collecting such obligations (including attorney’s fees), including, without limitation, all interest accruing after the commencement by or against the Company of any bankruptcy, reorganization or similar proceeding
(the “Senior Debt”). 
  
 13.1.3 Each Holder will not
demand or receive from the Company (and the Company will not pay to such Holder) all or any part of the Subordinated Debt, by way of payment, prepayment, setoff, lawsuit or otherwise, nor will any Holder exercise any remedy with respect to any of
Parent’s collateral, nor will any Holder commence, or cause to commence, prosecute or participate in any administrative, legal or equitable action against the Company, for so long as any portion of the Senior Debt remains outstanding.
Notwithstanding the foregoing, each Holder shall be entitled to receive (i) securities of the Company in connection with the cancellation of indebtedness hereunder pursuant to the terms of this Agreement, and (ii) other payments consented to in
writing by Parent. 
  
 13.1.4 The Holders shall promptly deliver
to Parent in the form received (except for endorsement or assignment by a Holder where required by Parent) for application to the Senior Debt any payment, distribution, security or proceeds received by the Holders with respect to the Subordinated
Debt other than in accordance with this Section 13, provided that such payment shall not exceed the outstanding balance of the Senior Debt. 
  
 13.1.5 In the event of the Company’s insolvency, reorganization or any case or 

 
proceeding under any bankruptcy or insolvency law or laws relating to the relief of debtors, the provisions of this Section 13 shall remain in full force and
effect, and Parent’s claims against the Company and the estate of the Company shall be paid in full before any payment is made to the Holders, provided that such claims do not exceed the amounts Parent is entitled to receive under the financing
agreement between Parent and the Company. 
  
 13.1.6 For so long
as any of the Senior Debt remains unpaid, each Holder irrevocably appoints Parent as such Holder’s attorney-in-fact, and grants to Parent a power of attorney with full power of substitution, in the name of such Holder or in the name of Parent,
for the use and benefit of Parent, without notice to such Holder, to perform at Parent’s option the following acts in any bankruptcy, insolvency or similar proceeding involving the Company: 
  
 (a) To file the appropriate claim or claims in respect of the Subordinated
Debt on behalf of such Holder if such Holder does not do so prior to 30 days before the expiration of the time to file claims in such proceeding and if Parent elects, in its sole discretion, to file such claim or claims; and 
  
 (b) To accept or reject any plan of reorganization or arrangement on behalf
of such Holder and to otherwise vote such Holder’s claims in respect of any Subordinated Debt in any manner that Parent deems appropriate for the enforcement of its rights hereunder. 
  
 13.1.7 This Section 13 shall remain effective for so long as (i) the Company owes any amounts to Parent pursuant to the
Senior Debt and (ii) the Closing has not occurred. If, at any time after payment in full of the Senior Debt any payments of the Senior Debt must be disgorged by Parent for any reason (including, without limitation, the bankruptcy of the Company),
this Section 13 and the relative rights and priorities set forth herein shall be reinstated as to all such disgorged payments as though such payments had not been made and each Holder shall immediately pay over to Parent all payments received with
respect to the Subordinated Debt to the extent that such payments would have been prohibited hereunder. At any time and from time to time, without notice to the Holders, Parent may take such actions with respect to the Senior Debt as lenders, in
their sole discretion, may deem appropriate, including, without limitation, increasing the principal amount, extending the time of payment, increasing applicable interest rates, renewing, compromising or otherwise amending the terms of any documents
affecting the Senior Debt and any collateral securing the Senior Debt, and enforcing or failing to enforce any rights against the Company or any other person. No such action or inaction shall impair or otherwise affect Parent’s rights
hereunder. Each Holder waives the benefits, if any, of any statutory or common law rule that may permit a subordinating creditor to assert any defenses of a surety or guarantor, or that may give the subordinating creditor the right to require a
senior creditor to marshal assets, and each Holder agrees that it shall not assert any such defenses or rights. 
  
 13.1.8 The provisions of this Section 13 shall bind any successors or assignees of the Holders and shall benefit any successors or assigns of Parent, and,
if the Company refinances a portion of the Senior Debt with a new lender, such new lender shall be deemed a successor of Parent for the purposes of this Section 13. This Section 13 is solely for the benefit of the Holders and Parent and not for the
benefit of the Company or any other party. 
  
 13.1.9
Notwithstanding the provisions of Section 14.6 below, the provisions of this Section 13 may be amended with the written consent of Parent and the Required Holders. 
  
 13.1.10 In the event of any legal action to enforce the rights of a party under this Section 13, the party prevailing in
such action shall be entitled, in addition to such other relief as may be granted, all reasonable costs and expenses, including reasonable attorneys’ fees, incurred in such action. 
  
 ARTICLE XIV 
  
 MISCELLANEOUS 
  
 SECTION 14.1. Notices. All notices, demands, requests, consents, approvals or other communications (collectively, “Notices”)
required or permitted to be given hereunder or which are given with respect to this 

 
Agreement shall be in writing and shall be personally served, delivered by reputable air courier service with charges prepaid, or transmitted by hand
delivery, telegram, telex or facsimile, addressed as set forth below, or to such other address as such party shall have specified most recently by written notice. Notice shall be deemed given on the date of service or transmission if personally
served or transmitted by telegram, telex or facsimile. Notice otherwise sent as provided herein shall be deemed given on the next Business Day following delivery of such notice to a reputable air courier service. Notices shall be delivered as
follows: 
  
 If to the Company: 
  
 Genesoft Pharmaceuticals, Inc. 
 7300 Shoreline Court 
 South San Francisco, CA 94080 
 Attn: Chief Executive Officer 
 Telephone: 650-837-1900 
 Fax: 650-827-0477 
  
 with a copy
to: 
  
 Gunderson Dettmer Stough Villeneuve Franklin &
Hachigian, LLP 
 155 Constitution Drive 
 Menlo Park, California 94025 
 Attention:         Christopher D. Dillon 
 David T. Young 
 Facsimile No.: 650-321-2800

  
 If to Parent: 
  
 Genome Therapeutics 
 100 Beaver Street 
 Waltham, MA 
 Attn: Chief Financial Officer 
 Telephone: 781-398-2300 
 Fax: 781-893-8277 
  
 with a copy
to: 
  
 Ropes & Gray LLP 
 One International Place 
 Boston, MA 02110

 Attention: Patrick O’Brien 
 Telephone: 617-951-7000 
 Fax: 617-951-7050 
  

If to any Holder, to such Holder at its address as set forth on Schedule A or Schedule B, 
  
 with a copy to: 
  
 Wilson Sonsini Goodrich & Rosati 
 650 Page Mill Road 
 Palo Alto, CA 94304

 Attention: Michael J. O’Donnell 
 Telephone: 650-493-9300 
 Fax: 493-6811 
  
 If to any Holder which is not a Holder as of the Closing, to such address as such Holder shall have notified to Parent pursuant to this Section 14.1.

 SECTION 14.2. Governing Law. This Agreement shall be governed by, interpreted under, and construed
in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. 
  
 SECTION 14.3. Consent. Notwithstanding the terms and provisions contained in the April Purchase Agreement and the
December Purchase Agreement, the Holders hereby consent, in their capacities as parties to such agreements, to the Company (i) issuing the Promissory Note dated the date hereof in an aggregate principal amount not greater than $8,000,000 to Parent
(the “Parent Promissory Note”), (ii) entering into the Security Agreement dated the date hereof between Parent and the Company and (iii) entering into the Merger Agreement. 
  
 SECTION 14.4. Termination. 
  

(a) This Agreement may be terminated as between Parent, the Company and the Holders at any time prior to the Closing Date by mutual written agreement
of Parent, the Company and Holders. This Agreement shall terminate automatically and without any action on the part of Parent, the Company or any Holder if the Merger Agreement shall have been terminated. 
  
 (b) If this Agreement is terminated as between Parent and the Holders, as
permitted by Section 14.4(a), such termination shall be without liability of any party (or any stockholder, director, officer, partner, employee, agent, consultant or representative of such party) to any other party to this Agreement; provided, that
if such termination shall result from the willful (i) failure of any party to fulfill a condition to the performance of the obligations of the other party, (ii) failure to perform a covenant of this Agreement or (iii) breach by any party hereto of
any representation or warranty contained herein, such failing or breaching party shall be fully liable for any and all losses incurred or suffered by the other party as a result of such failure or breach. 
  
 SECTION 14.5. Entire Agreement. As between the Company, Parent and the
Holders this Agreement and the Parent Notes (including all agreements entered into pursuant hereto and thereto and all certificates and instruments delivered pursuant hereto and thereto) constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede all prior and contemporaneous agreements, representations, understandings, negotiations and discussions between the parties, whether oral or written, with respect to the subject matter hereof. 
  
 SECTION 14.6. Modifications, Amendments and Waivers. Prior to the
Effective Time, this Agreement may be amended, modified or terminated, and any provision hereof may be waived, solely pursuant to a writing executed by Parent, the Company and the Required Holders. From and after the Effective Time, each of this
Agreement and each Parent Note may be amended, modified or terminated, and any provision hereof may be waived, solely pursuant to a writing executed by Parent and the Required Holders. Waivers may be made in advance or after the right waived has
arisen or the breach or default waived has occurred. Any waiver may be conditional. No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof nor of any other
agreement or provision herein contained. No waiver or extension of time for performance of any obligations or acts shall be deemed a waiver or extension of the time for performance of any other obligations or acts. A waiver on any one occasion shall
not be construed as a bar to or waiver of any right or remedy on any future occasion. None of the December Purchase Agreement, the April Purchase Agreement, any December Note or any April Note may be amended, modified or terminated, and no provision
thereof may be waived, unless Parent consents in writing to such action or change. 
  
 SECTION 14.7. Expenses. Each of Parent and the Company shall pay its own expenses in connection with the negotiation, execution delivery and performance of this Agreement. At the Closing, Parent shall pay the
reasonable fees and expenses of one special counsel to the Holders, in an amount not to exceed $25,000. 
  
 SECTION 14.8. Registrar, Paying Agent and Conversion Agent. Parent Notes may be presented for registration of transfer or for exchange at the
office of the Registrar, Parent Notes may be presented for payment at the office of the Paying Agent and Parent Notes may be presented for conversion at the office of the Conversion Agent. The Registrar shall keep a register of the Parent Notes and
of their transfer and exchange. Parent may appoint or change one or more co-registrars, one or more additional paying agents and one or more additional conversion agents without notice and may act in any such capacity on its own behalf. The term
Registrar includes any co-registrar; the term Paying Agent includes any additional paying agent; and the term Conversion Agent includes any additional conversion agent. The Company initially shall act as Paying Agent, Registrar and Conversion Agent.

 SECTION 14.9. Paying Agent To Hold Money in Trust. Each Paying Agent shall hold in trust for the
benefit of the Holders all moneys held by the Paying Agent for the payment of the Parent Notes. When Parent acts as Paying Agent, it shall segregate and hold as a separate trust fund all money held by it as Paying Agent. 
  
 SECTION 14.10. Holder Lists. Parent shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the names and addresses of Holders. 
  
 SECTION 14.11. Transfer and Exchange. Where Parent Notes are presented to the Registrar with a request to register their transfer or to exchange
them for an equal principal amount of Parent Notes of other authorized denominations, the Registrar shall register the transfer or make the exchange if its requirements for such transaction are met. Parent shall not be required to register the
transfer of or exchange any Parent Note subject to repurchase or redemption, in whole or in part, pursuant to a duly executed and delivered Repurchase Notice or Parent Redemption Notice, except the unrepurchased or unredeemed portion of Parent Notes
being repurchased or redeemed in part. No service charge shall be made for any transfer, exchange or conversion of Parent Notes, but Parent may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
connection with any transfer, exchange or conversion of Parent Notes. 
  
 SECTION 14.12. Replacement Parent Notes. If a Holder of Parent Notes claims that Parent Notes have been mutilated, lost, destroyed or wrongfully taken, Parent shall issue replacement Parent Notes upon surrender to Parent of the
mutilated Parent Notes, or upon delivery to Parent of evidence of the loss, destruction or theft of the Parent Notes satisfactory to Parent. In the case of lost, destroyed or wrongfully taken Parent Notes, an indemnity bond must be provided by the
Holder that is sufficient in the judgment of Parent to protect Parent from any loss which it may suffer if a Parent Note is replaced. Parent may charge for its expenses in replacing a Parent Note. In case any such mutilated, lost, destroyed or
wrongfully taken Parent Note has become or is about to become due and payable, Parent in its discretion may, instead of issuing a new Parent Note, pay such Parent Note when due. 
  
 SECTION 14.13. Cancellation. The Registrar, Paying Agent and Conversion Agent shall forward to Parent any Parent
Notes surrendered to them for transfer, exchange, payment or conversion. Parent shall cancel all Parent Notes surrendered for transfer, exchange, payment, conversion or cancellation in accordance with its customary procedures. Parent may not issue
new Parent Notes to replace Parent Notes that it has paid or cancelled or that any Holder has converted pursuant to this Agreement. 
  
 SECTION 14.14. Titles and Headings. Titles and headings of sections of this Agreement are for convenience only and shall not affect the
construction of any provision of this Agreement. 
  
 SECTION
14.15. Exhibits and Schedules. Each of the exhibits and schedules referred to herein and attached hereto is an integral part of this Agreement and is incorporated herein by reference. 
  
 SECTION 14.16. Assignment; No Third Party Beneficiaries. This
Agreement and the rights, duties and obligations hereunder may not be assigned or delegated by Parent without the prior written consent of the Required Holders in their sole discretion. Prior to any proposed sale, assignment, transfer or pledge by
any Holder of any Parent Notes (other than transfers in compliance with Rule 144 of the Securities Act, so long as Parent is furnished with satisfactory evidence of compliance with such Rule 144), unless there is in effect a registration statement
under the Securities Act covering the proposed transfer, the Holder thereof shall give written notice to Parent of such Holder’s intention to effect such transfer, sale, assignment or pledge. Each such notice shall describe the manner and
circumstances of the proposed transfer, sale, assignment or pledge in sufficient detail, and shall be accompanied, at such Holder’s expense by either (i) an opinion of counsel (who shall be, and whose opinion shall be, addressed to Parent and
reasonably satisfactory to Parent) to the effect that the proposed transfer of the Parent Notes may be effected without registration under the Securities Act, whereupon the Holder shall be entitled to transfer such Parent Notes in accordance with
the terms of such notice. In the event of any assignment of all or a portion of a Parent Note as permitted by this Section 14.16, then at the request of the transferor or transferee Holder Parent shall issue replacement Parent Note(s) reflecting the
new ownership of the Parent Notes and shall deliver such Parent Note(s) to the appropriate Holder(s) against delivery to Parent for cancellation of the Parent Note(s) being replaced, such issuance and delivery to be at the expense of Parent. The
transferee shall agree in writing to be bound by the terms of this Agreement and the Parent Note as a Holder. This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and their respective
successors and permitted assigns. This Agreement is not intended to confer any rights or benefits on any Persons other than the parties hereto, except as expressly set forth in this Section 14.16. 

 SECTION 14.17. Severability. This Agreement shall be deemed severable, and the invalidity or
unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties
hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. 
  
 SECTION 14.18. Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 
  
 SECTION 14.19. Further Assurances. As between Parent and the Holders, each party hereto, upon the request of any other party hereto, shall do all
such further acts and execute, acknowledge and deliver all such further instruments and documents as may be necessary or desirable to carry out the transactions contemplated by this Agreement, including, in the case of Parent, such acts, instruments
and documents as may be necessary or desirable to convey and transfer to the Holders the Parent Notes. 
  
 SECTION 14.20. Remedies Cumulative. The remedies provided herein shall be cumulative and shall not preclude the assertion by any party hereto of
any other rights or the seeking of any remedies against the other party hereto. 
  
 SECTION 14.21. Specific Performance. The parties hereto agree that the remedy at law for any breach of this Agreement may be inadequate, and that as between Parent and the Holders and other Holders any party by
whom this Agreement is enforceable shall be entitled to specific performance in addition to any other appropriate relief or remedy. Such party may, in its sole discretion, apply to a court of competent jurisdiction for specific performance or
injunctive or such other relief as such court may deem just and proper in order to enforce this Agreement as between Parent and the Holders and other Holders or prevent any violation hereof, and, to the extent permitted by applicable law, each party
waives any objection to the imposition of such relief. 
  
 SECTION
14.22. Venue; Service of Process. Each of the Company, Parent and the Holders: 
  
 (a) irrevocably submits to the nonexclusive jurisdiction of the state courts of the State of New York and the State of California and to the nonexclusive jurisdiction of the United States District Court for the
Southern District of New York and the United States District Court for the Northern District of California for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement or any Parent Note or the subject matter
hereof or thereof; 
  
 (b) waives to the extent not prohibited by
applicable law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such proceeding brought in any of the above-named courts, any claim that it is not subject personally to the jurisdiction of such court, that its property
is exempt or immune from attachment or execution, that such proceeding is brought in an inconvenient forum, that the venue of any such proceeding is improper, or that this Agreement or any Parent Note, or the subject matter hereof or thereof, may
not be enforced in or by such court; and 
  
 (c) consents to
service of process in any such proceeding in any manner permitted by the laws of the State of New York and the State of California and agrees that service of process by registered or certified mail, return receipt requested, at its address specified
in or pursuant to Section 14.1 is reasonably calculated to give actual notice. 
  
 SECTION 14.23. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH OF THE COMPANY, PARENT AND THE HOLDERS WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS
PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT OR THE SUBJECT MATTER HEREOF OR THEREOF OR ANY NOTE OBLIGATION OR IN
ANY WAY CONNECTED WITH THE DEALINGS OF THE HOLDERS, PARENT OR THE COMPANY IN CONNECTION WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT, TORT OR OTHERWISE. Either the Company, Parent or any
Holder may file an original counterpart or a copy of this Agreement with any court as written evidence of the consent of the Company, Parent and the Holders to the waiver of their rights to trial by jury. 
  
 [SIGNATURE PAGES FOLLOW] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  

	GENESOFT PHARMACEUTICALS, INC.
		
	By:	 	 
	 	

	 	 	 Title:

	 GENOME THERAPEUTICS CORP.

		
	By:	 	 
	 	

	 	 	 Title:

	 HOLDER’s:

	
	 
		
	By:	 	 
	 	

		
	 Name:
	 	 
		
	 Title:
	 	  

	
	 
		
	 By:
	 	  

		
	 Name:
	 	 
		
	 Title:
	 	  

 Exhibit A 
  
 FORM OF NOTE 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS NOTE MAY NOT
BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OTHER THAN PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS. 
  
 NOTE 
  

	 $                    
	 	            , 2004

  
 FOR VALUE RECEIVED,
the undersigned, Genome Therapeutics Corp., a Massachusetts corporation (the “Company”), hereby promises to pay                     
(the “Payee”), or order, on             , 2009
                     Dollars ($            ). The Company promises to pay
interest from the date hereof, computed as provided in the Note Amendment and Exchange Agreement (as defined below), on the aggregate principal amount of this Note from time to time unpaid at the per annum rate of five percent (5%). 
  
 Payments hereunder shall be made to the Payee at the address provided in the
Note Amendment and Exchange Agreement. 
  
 This Note evidences the
borrowing under, and is entitled to the benefits, and is subject to the provisions of, the Note Amendment and Exchange Agreement dated as of November     , 2003, as from time to time in effect (the “Note Amendment and
Exchange Agreement”), among the Company, the Payee and the other note purchasers identified therein. 
  
 Terms defined in the Note Amendment and Exchange Agreement and not otherwise defined herein are used herein with the meanings so defined. 
  
 In case an Event of Default shall occur and be continuing, the entire
principal of this Note may become or be declared due and payable in the manner and with the effect provided in the Note Amendment and Exchange Agreement. 
  
 This Note shall be governed by and construed in accordance with the laws of the State of New York. 
  
 The parties hereto, including the Company and all guarantors and endorsers,
hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note, except as specifically otherwise provided in the Note Amendment and Exchange
Agreement, and assent to extensions of time of payment, or forbearance or other indulgence without notice. 
  
 IN WITNESS WHEREOF, the undersigned has caused this note to be issued as of the date first written above. 
  

	 GENOME THERAPEUTICS CORP.

		
	By:	 	 
	 	

	 	 	 Name:

	 	 	 Title:

  

 7 

 CONVERSION NOTICE 
  

To convert this Parent Note into Common Stock, check the box:   ̈ 
  
 To convert only part of this Parent Note, state the principal amount to be converted (must be in multiples of $1,000): 
  
 $                         
  
 If you want the stock certificate made out in another person’s name, fill in the form below:

  
 ____________________________________________________________________________________________________________________ 
 (Insert other person’s social security number or tax I.D. number) 
  
 ____________________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________________ 
 (Print or type other person’s name, address and zip code) 
  
             ____________________________________________________________________________________ 
  

	 Date:___________________
	  	 Signature(s): ________________________________________________

	
	 ___________________________________________________________________________

		
	 	  	 _________________________________________________________________

	 	  	 (Sign exactly as your name(s) appear(s) on the face of the Parent Note)

  

 8 

 OPTION TO ELECT REDEMPTION UPON A LIQUIDATION EVENT 
  
 Certificate No. of Parent Note:
                     
  
 If you want to elect to have this Parent Note purchased in whole by Parent pursuant to Article VI of the Note Amendment and Exchange Agreement, check the
box:   ̈ 
  
 If you want to elect to have only part of this Parent Note purchased by the Parent pursuant to Article VI of the Note Amendment and Exchange Agreement
state the principal amount: 
  
 $
                                        
                         
 (in an integral multiple of $1,000) 
  

	 Date:
                    
	 	 Signature(s): ______________________________

		
	 	 	 ________________________________________________

	 	 	 (Sign exactly as your name(s) appear(s) on the face of
 the Parent Note)

  

 9 

 Exhibit B 
  
  
  
  
  
  
  
  
  
  
  
 [Form of Opinion] 
  

 10 

 Schedule A 
  
 [List of Holders] 
  

 11REGISTRATION RIGHTS AGREEMENT

 Execution Counterpart 
  
 Exhibit 10.4 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into
as of November 17, 2003, by and between Genome Therapeutics Corp., a Massachusetts corporation (the “Company”), and the Holders listed on Schedule I hereto (each a “Holder”, and collectively, the
“Holders”), pursuant to that certain Note Amendment and Exchange Agreement, dated as of November 17, 2003 (the “Note Amendment and Exchange Agreement”) between the Company, Genesoft Pharmaceuticals, Inc.
(“Guardian”), and the Holders. 
  
 The Company
agrees with the Holders for their benefit as beneficial owners from time to time of the Notes (as defined herein) and beneficial owners from time to time of the Underlying Common Stock (as defined herein) issued upon conversion of the Notes and the
beneficial owners from time to time of the Preference Shares and the Accrued Interest Shares, as follows: 
  
 Section 1. Definitions. Capitalized terms used herein without definition shall have the respective meanings set forth in the Note Amendment and
Exchange Agreement. As used in this Agreement, the following terms shall have the following meanings: 
  
 “Accrued Interest Shares” has the meaning assigned to such term in the Note Amendment and Exchange Agreement. 
  
 “Affiliate” means with respect to any specified person, an
“affiliate,” as defined in Rule 144, of such person. 
  
 “Amendment Effectiveness Deadline Date” has the meaning set forth in Section 2(d) hereof. 
  
 “Applicable Conversion Price” means, as of any date of determination, $1,000 principal amount at maturity of Notes divided by the
Conversion Rate then in effect as of the date of determination or, if no Notes are then outstanding, the Conversion Rate that would be in effect were Notes then outstanding. 
  
 “Business Day” means any day other than a Saturday, a Sunday or a day when banks in the city of New York,
in the state of New York are authorized or obligated by law or executive order to close. 
  
 “Common Stock” means the shares of common stock, par value $.10 per share, of the Company and any other shares of capital stock as may constitute “Common Stock” for purposes of the
Note Amendment and Exchange Agreement, including the Underlying Common Stock. 
  
 “Conversion Rate” has the meaning assigned to such term in the Note Amendment and Exchange Agreement. 
  
 “Damages Accrual Period” has the meaning set forth in Section 2(e) hereof. 
  
 “Damages Payment Date” means each January 1 and July 1. 
  
 “Effectiveness Deadline Date” has the meaning set forth in
Section 2(a) hereof. 
  
 “Effectiveness Period”
means a period (subject to extension pursuant to Section 3(i) hereof) of two years after the later of (1) the original issuance of the Notes and (2) the last date that the Company or any of its Affiliates was the owner of such Notes (or any
predecessor thereto), or such shorter period of time (x) as permitted by Rule 144(k) under the Securities Act or any successor provisions thereunder or (y) that will terminate when each of the Registrable Securities covered by the Shelf Registration
Statement ceases to be a Registrable Security. 

 “Event” has the meaning set forth in Section 2(e) hereof. 
  
 “Event Date” has the meaning set forth in Section 2(e)
hereof. 
  
 “Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
  
 “Filing Deadline Date” has the meaning set forth in Section 2(a) hereof. 
  
 “Holder” has the meaning set forth in the preamble hereto.

  
 “Initial Shelf Registration Statement” has
the meaning set forth in Section 2(a) hereof. 
  
 “Issue Date” means the first date of original issuance of the Notes. 
  
 “liquidated damages” has the meaning set forth in Section 2(e). 
  
 “Liquidated Damages Amount” has the meaning set forth in Section 2(e) hereof. 
  
 “Material Event” has the meaning set forth in Section
3(i) hereof. 
  
 “Note Amendment and Exchange
Agreement” has the meaning set forth in the preamble. 
  
 “Notes” means the 5% Convertible Subordinated Notes due 2009 of the Company to be issued pursuant to the Note Amendment and Exchange Agreement. 
  
 “Notice and Questionnaire” means a written notice and questionnaire delivered to the Company containing
substantially the information called for by the Selling Securityholder Notice and Questionnaire attached as Annex A hereto. 
  
 “Notice Holder” means, on any date, any Holder that has delivered a Notice and Questionnaire to the Company on or prior to such date, so
long as all of such Holder’s Registrable Securities that have been registered for resale pursuant to a Notice and Questionnaire have not been sold in accordance with a Shelf Registration Statement. 
  
 “Preference Shares” has the meaning assigned to such term in
the Note Amendment and Exchange Agreement. 
  
 “Prospectus” means the prospectus included in any Shelf Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 415 promulgated under the Securities Act), as amended or supplemented by any amendment or prospectus supplement, including post-effective amendments, and all materials incorporated by reference or deemed
to be incorporated by reference in such Prospectus. 
  
 “Record Holder” means (i) with respect to any Damages Payment Date relating to any Notes as to which any Liquidated Damages Amount has accrued, the holder of record of such Note on the date on which such Damages Payment
Date shall occur and (ii) with respect to any Damages Payment Date relating to the Underlying Common Stock as to which any Liquidated Damages Amount has accrued, the registered holder of such Underlying Common Stock fifteen (15) days prior to such
Damages Payment Date. 

 “Registrable Securities” means the (i) the Underlying Common Stock, (ii) the Preference
Shares and (iii) the Accrued Interest Shares and any securities into or for which such Underlying Common Stock, Preference Shares and Accrued Interest Shares have been converted, and any security issued with respect thereto upon any stock dividend,
split or similar event until, in the case of any such security, the earliest of (x) the date on which such security has been effectively registered under the Securities Act and disposed of in accordance with the Registration Statement relating
thereto and (y) the date on which the holding period that would be applicable thereto under Rule144(k) under the Securities Act or any successor provisions thereunder expires. 
  
 “Registration Expenses” has the meaning set forth in Section 5 hereof. 
  
 “Registration Statement” means any registration statement of
the Company that covers any of the Registrable Securities pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits and all
materials incorporated by reference or deemed to be incorporated by reference in such registration statement. 
  
 “Rule 144” means Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC. 
  
 “Rule 144A”
means Rule 144A under the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated by
the SEC thereunder. 
  
 “Shelf Registration
Statement” means the Initial Shelf Registration Statement and any Subsequent Shelf Registration Statement. 
  
 “Special Counsel” means Wilson Sonsini Goodrich & Rosati or such other single successor counsel as shall be specified by the Required
Holders. 
  
 “Subsequent Shelf Registration
Statement” has the meaning set forth in Section 2(b) hereof. 
  
 “Suspension Notice” has the meaning set forth in Section 3(i) hereof. 
  
 “Suspension Period” has the meaning set forth in Section 3(i) hereof. 
  
 “Underlying Common Stock” means the Common Stock into which the Notes are convertible or issued upon any
such conversion. 
  
 Section 2. Shelf Registration. (a) The
Company shall prepare and file or cause to be prepared and filed with the SEC, as soon as practicable but in any event by the date (the “Filing Deadline Date”) that is thirty (30) days after the Issue Date, a Registration Statement
for an offering to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act registering the resale from time to time by Holders thereof of all of the Registrable Securities (or, if registration of Registrable Securities
not held by Notice Holders is not permitted by the rules and regulations of the SEC, then registering all Registrable Securities held by Notice Holders) (the “Initial Shelf Registration Statement”). The Initial Shelf Registration
Statement shall be on Form S-3 or another appropriate form permitting registration of such Registrable Securities for resale by such Holders in accordance with the reasonable methods of distribution elected by the Holders, approved by the Company
(which approval shall not be unreasonably withheld), and set forth in 

 
the Initial Shelf Registration Statement. The Company shall use its best efforts to cause the Initial Shelf Registration Statement to be declared effective
under the Securities Act as promptly as is practicable but in any event by the date (the “Effectiveness Deadline Date”) that is one hundred twenty (120) days after the Issue Date, and to keep the Initial Shelf Registration Statement
(or any Subsequent Shelf Registration Statement) continuously effective under the Securities Act until the expiration of the Effectiveness Period. At the time the Initial Shelf Registration Statement is declared effective, each Holder that became a
Notice Holder prior to the date of effectiveness shall be named as a selling securityholder in the Initial Shelf Registration Statement and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to purchasers of
Registrable Securities in accordance with applicable law. 
  
 (b)
If the Initial Shelf Registration Statement or any Subsequent Shelf Registration Statement ceases to be effective for any reason at any time during the Effectiveness Period, the Company shall use its reasonable efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event shall within thirty (30) days of such cessation of effectiveness amend the Shelf Registration Statement in a manner reasonably expected to obtain the withdrawal of the
order suspending the effectiveness thereof, or file an additional Shelf Registration Statement covering all of the securities that as of the date of such filing are Registrable Securities (or, if registration of Registrable Securities not held by
Notice Holders is not permitted by the rules and regulations of the SEC, then registering all Registrable Securities held by Notice Holders as of such date) (a “Subsequent Shelf Registration Statement”). If a Subsequent Shelf
Registration Statement is filed, the Company shall use its reasonable efforts to cause the Subsequent Shelf Registration Statement to become effective as promptly as is practicable after such filing and to keep such Shelf Registration Statement (or
subsequent Shelf Registration Statement) continuously effective until the end of the Effectiveness Period. 
  
 (c) The Company shall supplement and amend any Shelf Registration Statement if required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Shelf Registration Statement, if required by the Securities Act or as reasonably requested by the Required Holders of the Registrable Securities covered by such Shelf Registration Statement. 

 
 (d) (i) Each Holder of Registrable Securities agrees that if such Holder
wishes to sell Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus, it will do so only in accordance with this Section 2(d) and Section 3(i). Each Holder of Registrable Securities wishing to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus agrees to deliver a completed and executed Notice and Questionnaire to the Company prior to any attempted or actual distribution of Registrable Securities under a Shelf
Registration Statement. With respect to any Holder who delivers a completed and executed Notice and Questionnaire on or after the date the Initial Shelf Registration Statement is declared effective, the Company shall, as promptly as practicable
after the date a Notice and Questionnaire is delivered, and in any event, subject to clause (B) below, within the later of (x) five (5) Business Days after such date or (y) five (5) Business Days after the expiration of any Suspension Period (1) in
effect when the Notice and Questionnaire is delivered or (2) put into effect within five (5) Business Days of such delivery date, 
  
 (A) if required by applicable law, file with the SEC a supplement to the related Prospectus or a post-effective amendment to the Shelf Registration
Statement or a Subsequent Shelf Registration Statement and any necessary supplement or amendment to any document incorporated therein by reference to the applicable Shelf Registration Statement and file any other required document with the SEC so
that the Holder delivering such Notice and Questionnaire is named as a selling securityholder in a Shelf Registration Statement and the related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to purchasers of the
Registrable Securities in accordance with applicable law; 

 (B) if the Company shall file a post-effective amendment to the Shelf Registration Statement, it shall
use its reasonable efforts to cause such post-effective amendment to be declared effective under the Securities Act as promptly as is practicable, but in any event by the date (the “Amendment Effectiveness Deadline Date” that is
forty-five (45) days after the date such post-effective amendment is required by this Section 2(d) to be filed; 
  
 (C) the Company shall provide such Holder a reasonable number of copies of any documents filed pursuant to Section 2(d)(i)(A) and 2(d)(i)(B);

  
 (D) the Company shall notify such Holder as promptly as
practicable after the effectiveness under the Securities Act of any post-effective amendment or Subsequent Shelf Registration Statement filed pursuant to Section 2(d)(i)(A) and 2(d)(i)(B); 
  
 (E) if a Notice and Questionnaire is delivered during a Suspension Period,
or a Suspension Period is put into effect within five (5) Business Days after such delivery date, the Company shall so inform the Holder delivering such Notice and Questionnaire and shall take the actions set forth in clauses (A), (B), (C) and (D)
above within ten (10) Business Days after expiration of the Suspension Period in accordance with Section 3(i); and 
  
 (F) if under applicable law, the Company has more than one option as to the type or manner of making any such filing, the Company shall make the required
filing or filings in the manner or of a type that is reasonably expected to result in the earliest availability of a Prospectus for effecting resales of Registrable Securities. 
  
 (ii) Notwithstanding anything contained herein to the contrary, the Company shall be under no obligation to name any Holder
that is not a Notice Holder as a selling securityholder in any Shelf Registration Statement or related Prospectus. 
  
 (e) The parties hereto agree that the Holders of Registrable Securities will suffer damages, and that it would not be feasible to ascertain the extent of
such damages with precision, if (i) the Initial Shelf Registration Statement has not been filed on or prior to the Filing Deadline Date, (ii) the Initial Shelf Registration Statement has not been declared effective under the Securities Act on or
prior to the Effectiveness Deadline Date, (iii) either a supplement to a prospectus or a post-effective amendment is required to be filed and fails to be filed within the prescribed period set forth in Section 2(d) (the applicable date being an
“Additional Filing Deadline Date”) or in the case of a post-effective amendment, such post-effective amendment is not declared effective by the SEC by the Amendment Effectiveness Deadline Date or (iv) the Initial Shelf Registration
Statement is filed and declared effective but shall thereafter cease to be effective (without being succeeded immediately by a new registration statement filed and declared effective) or usable for the offer and sale of Registrable Securities for a
period of time (including any Suspension Period) which shall exceed thirty (30) days in the aggregate in any three (3) month period or ninety (90) days in the aggregate in any twelve (12) month period (each of the events of a type described in any
of the foregoing clauses (i) through (iv) are individually referred to herein as an “Event,” and the Filing Deadline Date in the case of clause (i), the Effectiveness Deadline Date in the case of clause (ii), the Additional Filing
Deadline Date or the Amendment Effectiveness Deadline Date, as the case may be, in the case of clause (iii) and the date on which the duration of the ineffectiveness or unusability of the Shelf Registration Statement in any period exceeds the number
of days permitted by clause (iv) hereof in the case of clause (iv), being referred to herein as an “Event Date”). Events shall be deemed to continue until the following dates with respect to the respective types of Events: the date
the Initial Shelf Registration Statement is filed in the case of an Event of the type described in clause (i), the date the Initial Shelf Registration Statement is declared effective under the Securities Act in the case of an Event of the type
described in clause (ii), the date a prospectus supplement or a post-effective amendment to the Initial Shelf Registration Statement, whichever is required, is filed or declared effective, as the case may be, in the case of an Event of the type
described in clause (iii) and the date the Shelf Registration Statement becomes effective or usable again in the case of an Event of the type described in clause (iv). 

 Accordingly, commencing on (and including) any Event Date and ending on (but excluding) the next date on
which there are no Events that have occurred and are continuing (a “Damages Accrual Period”), the Company agrees to pay, as liquidated damages (“liquidated damages”) and not as a penalty, an amount (the
“Liquidated Damages Amount”) at the rate described below, payable periodically on each Damages Payment Date to Notice Holders, to the extent of, for each such Damages Payment Date, accrued and unpaid Liquidated Damages Amount to
(but excluding) such Damages Payment Date (or, if the Damages Accrual Period shall have ended prior to such Damages Payment Date, the date of the end of the Damages Accrual Period); provided that any Liquidated Damages Amount accrued with
respect to any Note or portion thereof called for redemption on a redemption date or converted into Underlying Common Stock on a conversion date prior to the Damages Payment Date, shall, in any such event, be paid instead to the Holder who submitted
such Note or portion thereof for redemption or conversion on the applicable redemption date or conversion date, as the case may be, on such date (or promptly following the conversion date, in the case of conversion). The Liquidated Damages Amount
shall accrue at a rate per annum equal to one-half of one percent (0.5%) of (i) the principal amount of such Notes or, without duplication, (ii) in the case of Notes that have been converted into Underlying Common Stock, the Applicable Conversion
Price of such shares of Underlying Common Stock and (iii) in the case of Preference Shares and Accrued Interest Shares, the issuance price per share, as the case may be. Notwithstanding the foregoing, no Liquidated Damages Amounts shall accrue as to
any Registrable Security from and after the earlier of (x) the date such security is no longer a Registrable Security and (y) expiration of the Effectiveness Period. The rate of accrual of the Liquidated Damages Amount with respect to any period
shall not exceed the rate provided for in this paragraph notwithstanding the occurrence of multiple concurrent Events. Following the cure of all Events requiring the payment by the Company of Liquidated Damages Amounts to the Holders of Registrable
Securities pursuant to this Section, the accrual of Liquidated Damages Amounts shall cease (without in any way limiting the effect of any subsequent Event requiring the payment of Liquidated Damages Amount by the Company). 
  
 The Holders shall be entitled to seek any available remedy for the
enforcement of this Agreement, including for the payment of any Liquidated Damages Amount. 
  
 All of the Company’s obligations set forth in this Section 2(e) that are outstanding with respect to any Registrable Security at the time such security ceases to be a Registrable Security shall survive until such
time as all such obligations with respect to such security have been satisfied in full (notwithstanding termination of this Agreement pursuant to Section 8(1)). 
  
 The parties hereto agree that the liquidated damages provided for in this Section 2(e) constitute a reasonable estimate of
the damages that may be incurred by Holders of Registrable Securities by reason of the failure of a Shelf Registration Statement to be filed, declared effective, amended or replaced to include the names of all Notice Holders or available for
effecting resales of Registrable Securities in accordance with the provisions hereof. 
  
 Section 3. Registration Procedures. In connection with the registration obligations of the Company under Section 2 hereof, the Company shall: 
  
 (a) Prepare and file with the SEC a Shelf Registration Statement or Shelf Registration Statements on Form S-3 or any other
appropriate form under the Securities Act available for the sale of the Registrable Securities by the Holders thereof in accordance with the intended method or methods of distribution thereof, and use its reasonable efforts to cause each such Shelf
Registration Statement to become effective and remain effective as provided herein; provided that before filing any Shelf Registration Statement or Prospectus or any amendments or supplements thereto with the SEC, the Company shall furnish to
the Holders and Special Counsel copies of all such documents proposed to be filed and use its reasonable efforts to reflect in each such 

 
document when so filed with the SEC such comments as the Holders or such counsel reasonably shall propose within three (3) Business Days of the delivery of
such copies to the Holders and such counsel. 
  
 (b) Prepare and
file with the SEC such amendments and post-effective amendments to each Shelf Registration Statement as may be necessary to keep such Shelf Registration Statement or Subsequent Shelf Registration Statement continuously effective until the expiration
of the Effectiveness Period; cause the related Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and use
its reasonable efforts to comply with the provisions of the Securities Act applicable to it with respect to the disposition of all securities covered by such Shelf Registration Statement during the Effectiveness Period in accordance with the
intended methods of disposition by the sellers thereof set forth in such Shelf Registration Statement as so amended or such Prospectus as so supplemented. 
  
 (c) As promptly as practicable give notice to the Notice Holders, and Special Counsel (i) when any Prospectus, Prospectus supplement, Shelf Registration
Statement or post-effective amendment to a Shelf Registration Statement has been filed with the SEC and, with respect to a Shelf Registration Statement or any post-effective amendment or when the same has been declared effective, (ii) of any
request, following the effectiveness of a Shelf Registration Statement under the Securities Act, by the SEC or any other federal or state governmental authority for amendments or supplements to such Shelf Registration Statement or the related
Prospectus or for additional information, (iii) of the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of any Shelf Registration Statement or the initiation or threatening of
any proceedings for that purpose, (iv) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose, (v) after the effective date of any Shelf Registration Statement filed pursuant to this Agreement of the occurrence of (but not the nature of or details concerning) a
Material Event and (vi) of the determination by the Company that a post-effective amendment to a Shelf Registration Statement or a Subsequent Shelf Registration Statement will be filed with the SEC, which notice may, at the discretion of the Company
(or as required pursuant to Section 3(i)), state that it constitutes a Suspension Notice, in which event the provisions of Section 3(i) shall apply. 
  
 (d) Use its reasonable efforts to prevent the issuance of, and, if issued, to obtain the withdrawal of any order suspending the effectiveness of a Shelf
Registration Statement or obtain the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction in which they have been qualified for sale, in either case at the
earliest possible moment, and provide prompt notice to each Notice Holder of the withdrawal of any such order. 
  
 (e) If requested by any Notice Holder, as promptly as practicable incorporate in a Prospectus supplement or a post-effective amendment to a Shelf
Registration Statement such information as such Notice Holder or Special Counsel shall reasonably determine to be required to be included therein by applicable law and make any required filings of such Prospectus supplement or such post-effective
amendment; provided that the Company shall not be required to take any actions under this Section 3(e) that, in the written opinion of counsel for the Company, are not in compliance with applicable law. 
  
 (f) As promptly as practicable furnish to each Notice Holder and Special
Counsel, without charge, at least one (1) conformed copy of any Shelf Registration Statement and any amendment thereto, including financial statements and all exhibits but excluding all documents incorporated or deemed to be incorporated therein by
reference (unless such documents are requested in writing to the Company by such Notice Holder or such counsel). 

 (g) During the Effectiveness Period, deliver to each Notice Holder and Special Counsel, in connection
with any sale of Registrable Securities pursuant to a Shelf Registration Statement, without charge, as many copies of the Prospectus or Prospectuses relating to such Registrable Securities (including each preliminary prospectus) and any amendment or
supplement thereto as such Notice Holder may reasonably request; and the Company hereby consents (except during such periods that a Suspension Notice is outstanding and has not been revoked) to the use of such Prospectus or each amendment or
supplement thereto by each Notice Holder, in connection with any offering and sale of the Registrable Securities covered by such Prospectus or any amendment or supplement thereto in the manner set forth therein. 
  
 (h) Prior to any public offering of the Registrable Securities pursuant to a
Shelf Registration Statement, use its reasonable efforts to register or qualify or cooperate with the Notice Holders in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any Notice Holder reasonably requests in writing (which request may be included in the Notice and Questionnaire); prior to any
public offering of the Registrable Securities pursuant to a Shelf Registration Statement, use its reasonable efforts to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period in connection
with such Notice Holder’s offer and sale of Registrable Securities pursuant to such registration or qualification (or exemption therefrom) and do any and all other acts or things reasonably necessary or advisable to enable the disposition in
such jurisdictions of such Registrable Securities in the manner set forth in the relevant Shelf Registration Statement and the related Prospectus; provided that the Company will not be required to (i) qualify generally to do business in any
jurisdiction where it is not then so qualified or (ii) take any action that would subject it to general service of process in suits or to taxation in any such jurisdiction where it is not then so subject. 
  
 (i) Upon (A) the issuance by the SEC of a stop order suspending the
effectiveness of any Shelf Registration Statement or the initiation of proceedings with respect to any Shelf Registration Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence of any fact as a
result of which any Shelf Registration Statement shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or any Prospectus
shall contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (C) the occurrence or
existence of any pending corporate development (a “Material Event”) that, in the reasonable discretion of the Company, makes it appropriate to suspend the availability of any Shelf Registration Statement and the related Prospectus,
(i) in the case of clause (B) or (C) above, subject to the next sentence, as promptly as practicable, prepare and file, if necessary pursuant to applicable law, a post-effective amendment to such Shelf Registration Statement or a supplement to the
related Prospectus or any document incorporated therein by reference or file any other required document that would be incorporated by reference into such Shelf Registration Statement and Prospectus so that such Shelf Registration Statement does not
contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and such Prospectus does not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (it being understood that the Company may rely on information provided by each Notice
Holder with respect to such Notice Holder), as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, and, in the case of a post-effective amendment to a Shelf Registration Statement, subject to the next
sentence, use its reasonable efforts to cause it to be declared effective as promptly as is practicable, and (ii) give notice to the Notice Holders and Special Counsel that the availability of the Shelf Registration Statement is suspended (a
“Suspension Notice”) and, upon receipt of any Suspension Notice, each Notice Holder agrees not to sell any Registrable Securities pursuant to such Shelf Registration Statement until such Notice Holder’s receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) 

 
above, or until it is advised in writing by the Company that the Prospectus may be used, and has received copies of any additional or supplemental filings
that are incorporated or deemed incorporated by reference in such Prospectus. The Company will use its reasonable efforts to ensure that the use of the Prospectus may be resumed (x) in the case of clause (A) above, as promptly as is practicable, (y)
in the case of clause (B) above, as soon as, in the judgment of the Company, the Shelf Registration Statement does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading and the Prospectus does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, and (z) in the case of clause (C) above, as soon as, in the reasonable discretion of the Company, such suspension is no longer appropriate. The period during which the availability of the Shelf Registration
Statement and any Prospectus may be suspended (the “Suspension Period”) without the Company incurring any obligation to pay liquidated damages pursuant to Section 2(e) shall not exceed thirty (30) days in any three (3) month period
and an aggregate of ninety (90) days in any twelve (12) month period. 
  
 (j) If requested in writing in connection with a disposition of Registrable Securities pursuant to a Registration Statement, make reasonably available for inspection during normal business hours by representatives for the Notice Holders of
such Registrable Securities, all relevant financial and other records and pertinent corporate documents and properties reasonably requested of the Company and its subsidiaries, and cause the appropriate officers, directors and employees of the
Company and its subsidiaries to make reasonably available for inspection during normal business hours all relevant information reasonably requested by such representatives for the Notice Holders in connection with such disposition, in each case as
is customary for similar “due diligence” examinations; provided, however, that such persons shall, at the Company’s request, first agree in writing with the Company that any information that is reasonably and in good
faith designated by the Company in writing as confidential at the time of delivery of such information shall be kept confidential by such persons and shall be used solely for the purposes of exercising rights under this Agreement, unless (i)
disclosure of such information is required by court or administrative order or is necessary to respond to inquiries of governmental or regulatory authorities, (ii) disclosure of such information is required by law (including any disclosure
requirements pursuant to federal securities laws in connection with the filing of any Shelf Registration Statement or the use of any Prospectus referred to in this Agreement) or necessary to defend or prosecute a claim brought against or by any such
persons (e.g., to establish a “due diligence” defense), (iii) such information becomes generally available to the public other than as a result of a disclosure or failure to safeguard by any such person or (iv) such information
becomes available to any such person from a source other than the Company and such source is not bound by a confidentiality agreement or is not otherwise under a duty of trust to the Company; provided further, that the foregoing
inspection and information gathering shall, to the greatest extent possible, be coordinated on behalf of all the Notice Holders and the other parties entitled thereto by the counsel referred to in Section 5. 
  
 (k) Comply with all applicable rules and regulations of the SEC and make
generally available to its securityholders earning statements (which need not be audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later
than 45 days after the end of any 12-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) commencing on the first day of the first fiscal quarter of the Company commencing after the effective date of a Shelf
Registration Statement, which statements shall cover said 12-month periods. 
  
 (l) Cooperate with each Notice Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities sold pursuant to a Shelf Registration Statement, which certificates shall not
bear any restrictive legends, and cause such Registrable Securities to be registered in such names as such Notice Holder may request in writing at least two (2) Business Days prior to any sale of such Registrable Securities. 

 (m) Provide a CUSIP number for all Registrable Securities covered by a Shelf Registration Statement not
later than the effective date of the Initial Shelf Registration Statement and provide the Trustee and the transfer agent for the Common Stock with certificates for the Registrable Securities that are in a form eligible for deposit with The
Depository Trust Company. 
  
 (n) Cooperate and assist in any
filings required to be made with the National Association of Securities Dealers, Inc. 
  
 (o) Use its reasonable efforts to cause the Underlying Common Stock, Preference Shares and Accrued Interest Shares to be listed on The Nasdaq National Market. 
  
 (p) In connection with any Shelf Registration Statement, the Company shall
enter into such customary agreements (including, if requested, an underwriting agreement in customary form) and take all such other action, if any, as Holders of a majority of the Registrable Securities being sold or the managing underwriters (if
any) shall reasonably request in order to facilitate any disposition of the Registrable Securities pursuant to such Shelf Registrations Statement. 
  
 (q) In connection with any Shelf Registration Statement, the Company shall, if requested by Holders of a majority of the Registrable Securities being
sold, their Special Counsel or the managing underwriters (if any) in connection with such Shelf Registration Statement, use its reasonable best efforts to cause (i) its counsel to deliver an opinion relating to the Shelf Registration Statement and
the Registrable Securities in customary form, (ii) its officers to execute and deliver all customary documents and certificates requested by Holders of a majority of the Registrable Securities being sold, their Special Counsel or the managing
underwriters (if any) and (iii) its independent public accountants to provide a comfort letter in customary form. 
  
 Section 4. Holder’s Obligations. 
  
 (a) Each Holder agrees, by acquisition of the Registrable Securities, that no Holder of Registrable Securities shall be entitled to sell any of such
Registrable Securities pursuant to a Shelf Registration Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 2(d) hereof (including the
information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder agrees promptly to furnish to the Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such Registrable Securities as the Company may from time to time reasonably request.
Any sale of any Registrable Securities by any Holder shall constitute a representation and warranty by such Holder that the information relating to such Holder and its plan of distribution is as set forth in the Prospectus delivered by such Holder
in connection with such disposition, that such Prospectus does not as of the time of such sale contain any untrue statement of a material fact provided by such Holder relating to such Holder or its plan of distribution and that such Prospectus does
not as of the time of such sale omit to state any material fact relating to such Holder or its plan of distribution necessary in order to make the statements in such Prospectus, in the light of the circumstances under which they were made, not
misleading. 
  
 Section 5. Registration Expenses. The
Company shall bear all fees and expenses incurred in connection with the performance by the Company of its obligations under Section 2 and 3 of this Agreement whether or not any of the Shelf Registration Statements are filed or declared effective.
Such fees and expenses (“Registration Expenses”) shall include, without limitation, (i) all registration and filing fees and expenses (including, without limitation, fees and expenses (x) with respect to filings required to be made
with the National Association of Securities Dealers, Inc. and (y) of compliance with federal securities laws and state securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of counsel for the Holders in
connection with Blue Sky qualifications of the Registrable Securities under the laws of 

 
such jurisdictions as the Notice Holders of a majority of the Registrable Securities being sold pursuant to a Shelf Registration Statement may designate),
(ii) all printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities in a form eligible for deposit with The Depository Trust Company and printing Prospectuses), (iii) all duplication and mailing
expenses relating to copies of any Shelf Registration Statement or Prospectus delivered to any Holders hereunder, (iv) all fees and disbursements of counsel for the Company and the fees and disbursements of the Special Counsel in connection with the
Shelf Registration Statement, (v) all fees and disbursements of the registrar and transfer agent for the Common Stock and (vi) Securities Act liability insurance obtained by the Company in its sole discretion. In addition, the Company shall pay the
internal expenses of the Company (including, without limitation, all salaries and expenses of officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the
listing by the Company of the Registrable Securities on any securities exchange on which similar securities of the Company are then listed and the fees and expenses of any person, including special experts, retained by the Company. Notwithstanding
the provisions of this Section 5, each seller of Registrable Securities shall pay selling expenses, which shall include, without limitation, all transfer taxes and other similar expenses and, to the extent required by applicable law, all
registration expenses. 
  
 Section 6. Indemnification;
Contribution. 
  
 (a) The Company agrees to indemnify, defend
and hold harmless each Holder, each person, if any, who controls any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (a “Controlling Person”) and the respective officers, directors,
partners, employees, representatives and agents of the Holders or any Controlling Person (each, an “Indemnified Party”), from and against any loss, damage, expense, liability, claim or any actions in respect thereof (including the
reasonable cost of investigation) which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon
any untrue statement or alleged untrue statement of a material fact contained in any Shelf Registration Statement or Prospectus, including any document incorporated by reference therein, or in any amendment or supplement thereto or in any
preliminary prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the
statements therein not misleading, or arises out of or is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any
preliminary prospectus, in the light of the circumstances under which they were made, not misleading, and the Company shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that (i) insofar as any such loss, damage, expense, liability, claim or action arises out of or is based
upon any untrue statement or omission or alleged untrue statement or omission of a material fact contained in, or omitted from, and in conformity with information furnished in writing by or on behalf of any Holder to the Company expressly for use
therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this subsection (a) shall
not inure to the benefit of any Holder from whom the person asserting any such losses, damages, expenses, liabilities, claims or actions purchased the Registrable Securities concerned, to the extent that a prospectus relating to such Registrable
Securities was required to be delivered by such Holder under the Securities Act in connection with such purchase and any such loss, damage, expense, liability, claim or action of such Holder results from the fact that there was not sent or given to
such person, at or prior to the written confirmation of the sale of such Registrable Securities to such person, (x) a copy of the final prospectus if the Company had previously furnished copies thereof to such Holder or (y) an amendment or
supplement to such final Prospectus if the Company had previously furnished copies thereof to such Holder; provided further, however, that this indemnity agreement will be in addition to any liability which the Company may
otherwise have to such Indemnified Party. 

 (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless the Company,
its directors, officers, employees, representatives, agents and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company Indemnified Party”) from
and against any loss, damage, expense, liability, claim or any actions in respect thereof (including the reasonable cost of investigation) which such Company Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act
or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information furnished in writing by or on behalf of such
Holder to the Company expressly for use in any Shelf Registration Statement or Prospectus, including any document incorporated by reference therein, or in any amendment or supplement thereto or in any preliminary prospectus, or arises out of or is
based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, or arises out of or
is based upon any omission or alleged omission to state a material fact necessary in order to make the statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under
which they were made, not misleading, in each case in connection with such information furnished in writing by or on behalf of such Holder to the Company expressly for such use; and, subject to the limitation set forth immediately preceding this
clause, each Holder shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company or any such controlling person in connection with investigating or defending any loss, damage, expense, liability, claim
or action in respect thereof. This indemnity agreement will be in addition to any liability which such Holder may otherwise have to the Company or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable
Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation.

  
 (c) If any action, suit or proceeding (each, a
“Proceeding”) is brought against any person in respect of which indemnity may be sought pursuant to either subsection (a) or (b) of this Section 6, such person (the “Indemnified Party”) shall promptly notify the
person against whom such indemnity may be sought (the “Indemnifying Party”) in writing of the institution of such Proceeding and the Indemnifying Party shall assume the defense of such Proceeding; provided, however,
that the omission to notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party or otherwise. Such Indemnified Party shall have the right to employ its own counsel in any
such case, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such
Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the
written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to
direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such
Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more
than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any
settlement of such Proceeding effected without the written consent of such Indemnifying Party, but if settled with the written consent of such Indemnifying Party, such 

 
Indemnifying Party agrees to indemnify and hold harmless an Indemnified Party from and against any loss or liability by reason of such settlement.
Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested an Indemnifying Party to reimburse such Indemnified Party for fees and expenses of counsel as contemplated by the second sentence of this paragraph,
then such Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) Business Days after receipt by such Indemnifying Party
of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at
least thirty (30) days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such
Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. 
  
 (d) If the indemnification provided for in this Section 6 is unavailable to an Indemnified Party under subsections (a) and (b) of this Section 6 in
respect of any losses, damages, expenses, liabilities, claims or actions referred to therein, then each applicable Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such losses, damages, expenses, liabilities, claims or actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holders on the other hand from the offering
of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company on the one hand and of the Holders on the other in connection with the statements or omissions which resulted in such losses, damages, expenses, liabilities, claims or actions, as well as any other relevant equitable
considerations. The relative fault of the Company on the one hand and of the Holders on the other shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or omission or
alleged omission relates to information supplied by the Company or by the Holders and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by
a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or
defending any Proceeding. 
  
 (e) The Company and the Holders
agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in
subsection (d) above. Notwithstanding the provisions of this Section 6, no Holder shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities sold by it were offered to the public
exceeds the amount of any damages which it has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the
respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be
available to any indemnified party at law or in equity. 
  
 (f)
The indemnity and contribution provisions contained in this Section 6 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Holder or any person
controlling any Holder or the Company, or the Company’s officers or directors or any person controlling the Company and (iii) the sale of any Registrable Security by any Holder. 

 Section 7. Information Requirements. (a) The Company covenants that, if at any time before the end
of the Effectiveness Period it is not subject to the reporting requirements of the Exchange Act, it will cooperate with any Holder of Registrable Securities and take such further action as any Holder of Registrable Securities may reasonably request
in writing (including, without limitation, making such representations as any such Holder may reasonably request), all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the
Securities Act within the limitations of the exemptions provided by Rule 144 and Rule 144A under the Securities Act and customarily taken in connection with sales pursuant to such exemptions. Upon the written request of any Holder of Registrable
Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with the reporting requirements of the Exchange Act, unless such a statement has been included in the Company’s most recent report filed with
the SEC pursuant to Section 13 or Section 15(d) of Exchange Act. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company to register any of its securities (other than the Common Stock) under any section of the
Exchange Act. 
  
 (b) The Company shall file the reports required
to be filed by it under the Exchange Act and shall comply with all other requirements set forth in the instructions to Form S-3 in order to allow the Company to be eligible to file registration statements on Form S-3. 
  
 Section 8. Miscellaneous. 
  
 (a) Remedies. The Company acknowledges and agrees that any failure by
the Company to comply with its obligations under this Agreement may result in material irreparable injury to the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and
that, in the event of any such failure, any Holder may obtain such relief as may be required to specifically enforce the Company’s obligations under this Agreement. The Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate. This Section 8(a) shall not apply to Section 2(e). 
  
 (b) No Conflicting Agreements. The Company is not, as of the date hereof, a party to, nor shall it, on or after the date of this Agreement, enter
into, any agreement with respect to its securities that conflicts with the rights granted to the Holders of Registrable Securities in this Agreement. The Company represents and warrants that the rights granted to the Holders of Registrable
Securities hereunder do not in any way conflict with the rights granted to the holders of the Company’s securities under any other agreements. The Company will not take any action with respect to the Registrable Securities which would adversely
affect the ability of any of the Holders to include such Registrable Securities in a registration undertaken pursuant to this Agreement, and after the date hereof, the Company shall not grant to any of its security holders (other than the Holders in
such capacity) the right to include any of its securities in the Shelf Registration Statement filed pursuant to this Agreement. 
  
 (c) Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of Holders of a majority in aggregate principal amount of such Registrable Securities (provided that
holders of Common Stock issued upon conversion of the Notes shall not be deemed holders of Common Stock, but shall be deemed to be holders of the aggregate principal amount of Notes from which such Common Stock was converted); provided
that, no consent is necessary from any of the Holders in the event that this Agreement is amended, modified or supplemented for the purpose of curing any ambiguity, defect or inconsistency that does not adversely affect the rights of any
Holders. Notwithstanding the foregoing, a waiver or 

 
consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders of Registrable Securities whose
securities are being sold pursuant to a Shelf Registration Statement and that does not directly or indirectly affect the rights of other Holders of Registrable Securities may be given by Holders of at least a majority of the Registrable Securities
being sold by such Holders pursuant to such Shelf Registration Statement; provided that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the immediately preceding
sentence. Each Holder of Registrable Securities outstanding at the time of any such amendment, modification, supplement, waiver or consent or thereafter shall be bound by any such amendment, modification, supplement, waiver or consent effected
pursuant to this Section 8(c), whether or not any notice, writing or marking indicating such amendment, modification, supplement, waiver or consent appears on the Registrable Securities or is delivered to such Holder. 
  
 (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, by telecopier, by courier guaranteeing overnight delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made, if made by hand delivery, (ii) upon
confirmation, if made by telecopier, (iii) one (1) Business Day after being deposited with such courier, if made by overnight courier or (iv) on the date indicated on the notice of receipt, if made by first-class mail, to the parties as follows:

  
 (x) if to a Holder of Registrable Securities, at the most
current address given by such Holder to the Company in a Notice and Questionnaire or any amendment thereto; 
  
 (y) if to the Company, to: 
  
 Genome Therapeutics Corp. 
 100 Beaver Street

 Waltham, MA 02453 
 Attention:
Chief Financial Officer 
 Telecopy No.: (781) 893-8277 
  
 with a copy to: 
  
 Ropes & Gray LLP 
 One International Place

 Boston, Massachusetts 02110 
 Attention: Patrick O’Brien 
 Telecopy No: (617) 951-7050 
  
 (z) if to any Holder, to it at its address set forth on Schedule I 
  
 or to such other address as such person may have furnished to the other persons identified in
this Section 8(d) in writing in accordance herewith. 
  
 (e)
Approval of Holders. Whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its affiliates (as such term is defined in Rule 405
under the Securities Act) (other than subsequent Holders of Registrable Securities if such subsequent Holders are deemed to be such affiliates solely by reason of their holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage. 
  
 (f) Successors and Assigns. Any person who purchases any Registrable Securities from any Holder shall be deemed, for purposes of this Agreement, to be an assignee of such Holder, as the case may be. This
Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties and shall inure to the benefit of and be binding upon each Holder of any Registrable Securities. 

 (g) Counterparts. This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed to be original and all of which taken together shall constitute one and the same agreement. 
  
 (h) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 
  
 (i) Governing Law. THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. 
  
 (j) Severability. If any term, provision, covenant or restriction of this Agreement is held to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, and the parties hereto shall use its best efforts to find and
employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction, it being intended that all of the rights and privileges of the parties shall be enforceable to
the fullest extent permitted by law. 
  
 (k) Entire
Agreement. This Agreement is intended by the parties as a final expression of their agreement and is intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein and the registration rights granted by the Company with respect to the Registrable Securities. Except as provided in the Note Amendment and Exchange Agreement, there are no restrictions, promises, warranties or undertakings, other
than those set forth or referred to herein, with respect to the registration rights granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior agreements and undertakings among the parties with respect to
such registration rights. No party hereto shall have any rights, duties or obligations other than those specifically set forth in this Agreement. 
  
 (l) Termination. This Agreement and the obligations of the parties hereunder shall terminate upon the end of the Effectiveness Period, except for
any liabilities or obligations under Section 4, 5 or 6 hereof and the obligations to make payments of and provide for liquidated damages under Section 2(e) hereof to the extent such damages accrue prior to the end of the Effectiveness Period, each
of which shall remain in effect in accordance with its terms. 

 IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first written above. 
  

	 GENOME THERAPEUTICS CORP.

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  
 [Holders] 

 Annex A 
  
 GENOME THERAPEUTICS CORP. 
 FORM OF SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE 
  
 The undersigned beneficial holder of 5% convertible notes due 2009 (the “Notes”) of Genome Therapeutics Corp. (the “Company” or “Registrant”) or Common Stock, $.10 par value per share
(the “Common Stock” and, together with the Notes, the “Registrable Securities”), of the Company understands that the Registrant has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a registration statement on Form S-3 (the “Shelf Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in
accordance with the terms of the Registration Rights Agreement, dated as of November 17, 2003 (the “Registration Rights Agreement”), between the Company and the initial purchaser named therein. A copy of the Registration Rights Agreement
is available from the Company upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Registration Rights Agreement. 
  
 Each beneficial owner of Registrable Securities is entitled to the benefits of the
Registration Rights Agreement. In order to sell or otherwise dispose of any Registrable Securities pursuant to the Shelf Registration Statement, a beneficial owner of Registrable Securities generally will be required to be named as a selling
securityholder in the related prospectus, deliver a prospectus to purchasers of Registrable Securities and be bound by those provisions of the Registration Rights Agreement applicable to such beneficial owner (including certain indemnification
provisions, as described below). Beneficial owners that do not complete this Notice and Questionnaire and deliver it to the Company as provided below will not be named as selling securityholders in the prospectus and therefore will not be permitted
to sell any Registrable Securities pursuant to the Shelf Registration Statement. Beneficial owners are encouraged to complete and deliver this Notice and Questionnaire prior to the effectiveness of the Shelf Registration Statement so that such
beneficial owners may be named as selling securityholders in the related prospectus at the time of effectiveness. Upon receipt of a completed Notice and Questionnaire from a beneficial owner following the effectiveness of the Shelf Registration
Statement, the Company will, as promptly as practicable make filings with the Commission as are necessary to permit such holder to deliver such prospectus to purchasers of Registrable Securities, subject to the terms of the Registration Rights
Agreement. The Company has agreed to pay liquidated damages pursuant to the Registration Rights Agreement under certain circumstances as set forth therein. 
  
 Certain legal consequences arise from being named as a selling securityholder in the Shelf Registration Statement and the related prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Shelf Registration Statement and the related
prospectus. 

 NOTICE 
  
 The undersigned beneficial owner (the “Selling Securityholder”) of Registrable Securities hereby gives notice to the Company of its intention to sell or
otherwise dispose of Registrable Securities beneficially owned by it and listed below in Paragraph 3 (unless otherwise specified under such Paragraph 3) pursuant to the Shelf Registration Statement. The undersigned, by signing and returning this
Notice and Questionnaire, understands that it will be bound by the terms and conditions of this Notice and Questionnaire and the Registration Rights Agreement. 
  

Pursuant to the Registration Rights Agreement, the undersigned has agreed to indemnify and hold harmless the Company’s directors and officers and each person, if
any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from and against certain losses arising in connection with
statements concerning the undersigned made in the Company’s Shelf Registration Statement or the related prospectus in reliance upon the information provided in this Notice and Questionnaire. 
  
 The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate and complete: 
  
 QUESTIONNAIRE 
  

		
	1.	  	(a) Full Legal Name of Selling Securityholder:
		
	 	  	                                      
                                        
                                        
                                        
                                        
           
	
	 (b) Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities
            Listed in Item 3 below are held:

		
	 	  	                                      
                                        
                                        
                                        
                                        
           
	
	 (c) Full Legal Name of DTC participant (if applicable and if not the same as (b) above) through
which            Registrable Securities listed in Item 3 below are held:

		
	 	  	                                      
                                        
                                        
                                        
                                        
           
		
	2.	  	Address for Notices to Selling Securityholder:
		
	 	  	                                      
                                        
                                        
                                        
                                        
           
		
	 	  	                                      
                                        
                                        
                                        
                                        
           
		
	 	  	                                      
                                        
                                        
                                        
                                        
           
		
	 	  	Telephone:
		
	 	  	                                      
                                        
                                        
                                        
                                        
           
		
	 	  	Fax:
		
	 	  	                                      
                                        
                                        
                                        
                                        
           
		
	 	  	Contact Person:
		
	 	  	                                      
                                        
                                        
                                        
                                        
           
		
	3.	  	Beneficial Ownership of Registrable Securities:
		
	 	  	(a) Type and Principal Amount of Registrable Securities beneficially owned:

		
	 	  	(b) CUSIP No(s). of such Registrable Securities beneficially owned:
		
	 	  	                                      
                                        
                                        
                                        
                                        
         
		
	 	  	                                      
                                        
                                        
                                        
                                        
         
		
	 4.
	  	Beneficial Ownership of Other Securities of the Company owned by the Selling Securityholder.
	
	Except as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities listed
above in Item 3.
		
	 (a)
	  	Type and Amount of Other Securities beneficially owned by the Selling Securityholder:
		
	 	  	                                      
                                        
                                        
                                        
                                        
         
		
	 	  	                                      
                                        
                                        
                                        
                                        
         
		
	 (b)
	  	CUSIP No(s). of such Other Securities beneficially owned:
		
	 	  	                                      
                                        
                                        
                                        
                                        
         
		
	 	  	                                      
                                        
                                        
                                        
                                        
         
		
	 5.
	  	Relationships with the Company:
	
	Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% or more of the equity securities of the
undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.
	
	 State any exceptions here:

	
	                                       
                                        
                                        
                                        
                                        
                   

	
	                                       
                                        
                                        
                                        
                                        
                   

		
	 6.
	  	Plan of Distribution:
	
	Except as set forth below, the undersigned (including its donees or pledgees) intends to distribute the Registrable Securities listed above in Item 3 pursuant to the Shelf
Registration Statement only as follows (if at all): Such Registrable Securities may be sold from time to time directly by the undersigned or, alternatively, through underwriters, broker-dealers or agents. If the Registrable Securities are sold
through underwriters, broker-dealers or agents, the Selling Securityholder will be responsible for underwriting discounts or commissions or agents’ commissions. Such Registrable Securities may be sold in one or more transactions at fixed
prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale or at negotiated prices. Such sales may be effected in transactions (which may involve block transactions) (i) on any national securities
exchange or quotation service on which the Registrable Securities may be listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise than on such exchanges or services or in the over-the-counter market,
or (iv) through the writing of options. In connection with sales of the Registrable Securities or otherwise, the undersigned may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable
Securities in the course of hedging positions they assume. The undersigned may also sell Registrable Securities short and deliver Registrable Securities to close out short positions, or loan or pledge Registrable Securities to broker-dealers that in
turn may sell such securities.
	
	 State any exceptions here:

	
	                                       
                                        
                                        
                                        
                                        
                   

	
	                                       
                                        
                                        
                                        
                                        
                   

	Note: In no event will such method(s) of distribution take the form of an underwritten offering of the Registrable Securities without the prior agreement of the
Company.
	
	The undersigned acknowledges its obligation to comply with the provisions of the Exchange Act and the rules thereunder relating to stock manipulation, particularly Regulation M
thereunder (or any successor rules or regulations), in connection with any offering of Registrable Securities pursuant to the Registration Rights Agreement. The undersigned agrees that neither it nor any person acting on its behalf will engage in
any transaction in violation of such provisions.
	
	The Selling Securityholder hereby acknowledges its obligations under the Registration Rights Agreement to indemnify and hold harmless certain persons as set forth
therein.
	
	Pursuant to the Registration Rights Agreement, the Company has agreed under certain circumstances to indemnify the Selling Securityholder against certain
liabilities.
	
	In accordance with the undersigned’s obligation under the Registration Rights Agreement to provide such information as may be required by law for inclusion in the Shelf
Registration Statement, the undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the Shelf Registration Statement remains
effective.
	
	All notices hereunder and pursuant to the Registration Rights Agreement shall be made in writing at the address set forth below.
	
	By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion of such information in the
Shelf Registration Statement and the related prospectus. The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Shelf Registration Statement and the related
prospectus.
	
	IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized
agent.

  

	 Dated:
	 	  

	 	 Beneficial Owner:

	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	  

	 	 	 	 	 Title:
	 	  

  
 PLEASE RETURN THE
COMPLETED AND EXECUTED NOTICE 
 AND QUESTIONNAIRE TO GENOME THERAPEUTICS CORP. AT: 
  
 100 Beaver Street 
 Waltham, MA 02453 
 Attn: Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}]]