Document:

Exhibit 10.2

 

	

    	
 
    	
RBC   Capital Markets, LLC

3   World Financial Center

200   Vesey Street

New   York, NY  10281

Telephone:  (212) 858-7000
    

 

	
DATE:
    	
 
    	
June 14, 2013
    
	
 
    	
 
    	
 
    
	
TO:
    	
 
    	
Janus   Capital Group Inc.
    
	
ATTENTION:
    	
 
    	
David   Grawemeyer
    
	
TELEPHONE:
    	
 
    	
(303) 336-5053
    
	
 
    	
 
    	
 
    
	
FROM:
    	
 
    	
RBC Capital Markets, LLC
    
	
 
    	
 
    	
as agent for
    
	
 
    	
 
    	
Royal Bank of Canada
    
	
TELEPHONE:
    	
 
    	
(212)   858-7000
    
	
FACSIMILE:
    	
 
    	
(212)   428-3053
    
	
 
    	
 
    	
 
    
	
SUBJECT:
    	
 
    	
Convertible   Bond Hedge Transaction
    
	
 
    	
 
    	
 
    
	
REFERENCE   NUMBER(S):
    	
 
    	
JNS-A1-C1
    

 

The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of the above-referenced transaction entered into on the Trade Date specified below (the “Transaction”) between Royal Bank of Canada (“Dealer”) and Janus Capital Group Inc. (“Counterparty”).  The additional terms of the Transaction are as set forth in the Trade Notification in the form of Schedule A hereto (the “Trade Notification”), which shall reference this Confirmation and supplement, form a part of, and be subject to this Confirmation.  This communication, as supplemented by the Trade Notification, constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.

 

Disclosure of Agency Relationship

 

Dealer has appointed, as its agent, its indirect wholly-owned subsidiary, RBC Capital Markets, LLC (“RBCCM”), for purposes of conducting, on Dealer’s behalf, a business in privately negotiated transactions in options and other derivatives.  You hereby are advised that Dealer, the principal and stated counterparty in such transactions, duly has authorized RBCCM to market, structure, negotiate, document, price, execute and hedge transactions in over-the-counter derivative products.

 

1.                                      This Confirmation and the Trade Notification are subject to, and incorporate, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions” and, together with the 2000 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  In the event of any inconsistency between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern.  Certain defined terms used herein have the meanings assigned to them in the Senior Debt Indenture (the “Base Indenture”) dated as of November 6, 2001 between Counterparty and The Bank of New York Mellon Trust Company, N.A. as trustee, as supplemented and amended by the Third Supplemental Indenture (the “Supplemental Indenture”) to be dated as of or about June 19, 2013, between such parties (the Senior Debt Indenture, as so supplemented and amended, subject to the following paragraph, the “Indenture”) relating to the USD 116,602,000 principal amount of 0.75% Convertible Senior Notes due 2018 (the “Convertible Securities”).  In the event of any inconsistency between the terms defined in the Indenture and this Confirmation, this Confirmation shall govern.

 

For the avoidance of doubt, references herein to sections of the Base Indenture or Supplemental Indenture are based on the drafts of the Base Indenture or Supplemental Indenture, as the case may be, most recently reviewed by the parties at the time of execution of this Confirmation. If any relevant sections of such agreement are changed, added or renumbered

 

 

following execution of this Confirmation but prior to the execution of such agreement, the parties will amend this Confirmation in good faith to preserve the economic intent of the parties based on the draft of such agreement so reviewed. Subject to the two preceding sentences, the parties acknowledge that references to the Indenture herein are references to the Indenture as in effect on the date of execution of the Supplemental Indenture, without giving effect to any amendment or supplement to the Indenture, other than (subject to the provision under “Method of Adjustment” below relating to Counterparty Determinations) pursuant to any Merger Supplemental Indenture (as defined below). Terms in quotation marks that are not otherwise defined in this Confirmation shall have the meanings set forth in the Indenture, unless the context otherwise requires.

 

This Confirmation, as supplemented by the Trade Notification, evidences a complete and binding agreement between Dealer and Counterparty as to the terms of the Transaction to which this Confirmation, as supplemented by the Trade Notification, relates.  This Confirmation and the Trade Notification shall be subject to an agreement (the “Agreement”) in the form of the ISDA 2002 Master Agreement as if Dealer and Counterparty had executed an agreement in such form (without any Schedule except for (i) the election of US Dollars (“USD”) as the Termination Currency and (ii) the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement will apply to Dealer and to Counterparty with (x) the phrase “, or becoming capable at such time of being declared,” deleted from Section 5(a)(vi)(1) of the Agreement and (y) the “Threshold Amount” with respect to Dealer being three percent (3%) of shareholders’ equity of Royal Bank of Canada as of the Trade Date and with respect to Counterparty,  USD 50.0 million).  For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement and the Convertible Securities shall be a Specified Indebtedness with respect to the Counterparty.

 

All provisions contained in, or incorporated by reference in, the Agreement will govern this Confirmation and the Trade Notification except as expressly modified herein.  In the event of any inconsistency between this Confirmation, the Trade Notification and either the Definitions or the Agreement, the following will prevail for purposes of the Transaction in order of precedence indicated: (i) the Trade Notification, (ii) this Confirmation, (iii) the Definitions, (iv) the Agreement (without regard to the Trade Notification and the Confirmation).  For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of this Confirmation, the Trade Notification, the Agreement or the Equity Definitions shall not be construed to exclude or limit the application of any other provision of this Confirmation, the Trade Notification, the Agreement or the Equity Definitions.

 

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

 

	
General Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Trade   Date:
    	
 
    	
June 14,   2013
    
	
 
    	
 
    	
 
    
	
Effective   Date:
    	
 
    	
The   closing date for the issuance of the Convertible Securities.
    
	
 
    	
 
    	
 
    
	
Option   Type:
    	
 
    	
Call
    
	
 
    	
 
    	
 
    
	
Seller:
    	
 
    	
Dealer
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
Counterparty
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
The   common stock of Counterparty, par value USD0.001 per share (Ticker Symbol:   “JNS”)
    
	
 
    	
 
    	
 
    
	
Number   of Options:
    	
 
    	
116,602.   For the avoidance of doubt, the Number of Options shall be reduced by any   Options exercised hereunder.
    
	
 
    	
 
    	
 
    
	
Number   of Shares:
    	
 
    	
As   of any date, the product of the Number of Options and the Conversion Rate
    

 

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Conversion   Rate:
    	
 
    	
As   of any date, the “Conversion Rate” (as defined in the Indenture) as of such   date, but without regard to any adjustments to the “Conversion Rate” pursuant   to Section 4.04(f) or 4.04(g) of the Supplemental Indenture.
    
	
 
    	
 
    	
 
    
	
Hedge   Period Reference Price: 
    	
 
    	
As   specified in the Trade Notification, to be the average of the VWAP Prices for   the Exchange Business Days during the period beginning on the Trade Date and   ending on the day on which Dealer has informed Counterparty that Dealer has   completed all purchases of Shares or other transactions to hedge initially   its exposure with respect to the Transaction (the “Hedge   Period”). 
    
	
 
    	
 
    	
 
    
	
VWAP   Price: 
    	
 
    	
For   any Exchange Business Day during the Hedge Period, the Rule 10b-18   dollar volume weighted average price per Share for such Exchange Business Day   based on transactions executed during such Exchange Business Day, as reported   on Bloomberg Page “JNS <Equity> AQR” (or any successor thereto)   or, if such price is not so reported or is manifestly incorrect, as   determined by the Calculation Agent using a volume weighted method.
    
	
 
    	
 
    	
 
    
	
Premium:
    	
 
    	
As   specified in the Trade Notification, to be determined by reference to the   table set forth in Schedule B and based on the Hedge Period Reference Price.   If the exact Hedge Period Reference Price does not appear in such table, the   Premium shall be determined by linear interpolation or extrapolation using   the two closest Hedge Period Reference Prices appearing in such table.
    
	
 
    	
 
    	
 
    
	
Premium   Payment Date:
    	
 
    	
As   specified in the Trade Notification, to be the third Currency Business Day   following the last day of the Hedge Period.
    
	
 
    	
 
    	
 
    
	
Exchange:
    	
 
    	
New   York Stock Exchange
    
	
 
    	
 
    	
 
    
	
Related   Exchanges:
    	
 
    	
All   Exchanges
    
	
 
    	
 
    	
 
    
	
Procedure for Exercise:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exercise   Dates:
    	
 
    	
Each   Conversion Date
    
	
 
    	
 
    	
 
    
	
Conversion   Date:
    	
 
    	
Each   “Conversion Date” (as defined in the Indenture) occurring during the period   from and excluding the Trade Date to and including the Expiration Date.
    
	
 
    	
 
    	
 
    
	
Relevant Convertible Securities:
    	
 
    	
For   any Conversion Date, Securities, each in denominations of USD1,000 principal   amount, that are submitted for conversion on such Conversion Date in   accordance with the terms of the Indenture.
    
	
 
    	
 
    	
 
    
	
Exercise   on Conversion Dates:
    	
 
    	
On   each Conversion Date, a number of Options equal to the lesser of (i) the   number of Relevant Convertible Securities for such Conversion Date in   denominations of USD1,000 principal amount and (ii) the Number of   Options on such date shall be exercised upon and only upon Counterparty   providing a Notice of Exercise to Dealer in accordance 
    

 

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with   “Notice of Exercise” below, without further action by Counterparty.
    
	
 
    	
 
    	
 
    
	
Expiration   Date:
    	
 
    	
The   “Business Day” immediately preceding the “Stated Maturity”.
    
	
 
    	
 
    	
 
    
	
Scheduled   Trading Day: 
    	
 
    	
“Scheduled   Trading Day” as defined in the Indenture. 
    
	
 
    	
 
    	
 
    
	
Automatic   Exercise:
    	
 
    	
As   provided under “Exercise on Conversion Dates”.
    
	
 
    	
 
    	
 
    
	
Exercise   Notice Deadline:
    	
 
    	
In   respect of any exercise of Options hereunder on any Conversion Date   (x) prior to the Free Convertibility Period, the second Trading Date   immediately following such Conversion Date or (y) during the Free   Convertibility Period, the “Business Day” immediately preceding the “Maturity   Date”; provided that notwithstanding the   foregoing, in the case of an exercise of Options hereunder in respect of a   conversion of Relevant Convertible Securities prior to the Free   Convertibility Period, such notice (and the related exercise of Options)   shall be effective if given after the Exercise Notice Deadline, but prior to   5:00 PM New York City time, on the fifth Exchange Business Day following the   Exercise Notice Deadline, in which event the Calculation Agent shall have the   right to adjust the Delivery Obligation as appropriate to reflect the   additional costs (including, but not limited to, hedging mismatches and   market losses) and expenses incurred by Dealer in connection with its hedging   activities (including the unwinding of any hedge position) as a result of   Dealer not having received such notice on or prior to the Exercise Notice   Deadline.
    
	
 
    	
 
    	
 
    
	
Notice   of Exercise:
    	
 
    	
Notwithstanding   anything to the contrary herein or in the Equity Definitions, Dealer shall   have no obligation to make any payment or delivery in respect of any exercise   of Options hereunder unless Counterparty notifies Dealer in writing in   accordance with the provisions of “Exercise Notice Deadline” above in respect   of such exercise of (i) the number of Options being exercised on the   relevant Exercise Date, (ii) the scheduled settlement date under the   Indenture for the Convertible Securities converted on the Conversion Date   corresponding to such Exercise Date, (iii) whether such Relevant   Convertible Securities will be settled by Counterparty by delivery of cash, Shares   or a combination of cash and Shares and, if such a combination, the   “Specified Dollar Amount” and (iv) the first “Scheduled Trading Day” of   the “Cash Settlement Averaging Period”, and such notice shall also include   the representations and acknowledgments required pursuant to Settlement   Method Election Conditions below, if applicable; provided that in the case of   any exercise of Options hereunder in connection with the conversion of any   Relevant Convertible Securities on any Conversion Date occurring during the   Free Convertibility Period (as defined below), the contents of such notice   shall be solely as set forth in clause (i) above.
    
	
 
    	
 
    	
 
    
	
Notice   of Convertible Security
   Settlement Method:
    	
 
    	
Counterparty   shall notify Dealer in writing before 5:00 P.M. (New York City time) on   April 15, 2018 of the irrevocable election by the Counterparty, in   accordance with Section 4.03(a)(iii) of the Supplemental Indenture,   of the settlement method and, if applicable, the “Specified Dollar Amount”   applicable to Relevant Convertible Securities with a Conversion Date   occurring on or after April 15, 2018 
    

 

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and   ending on and including the “Business Day” immediately preceding the   “Maturity Date” (the “Free Convertibility Period”). If Counterparty fails   timely to provide such notice, Counterparty shall be deemed to have notified   Dealer of “Combination Settlement” with a “Specified Dollar Amount” of   USD1,000 for all conversions occurring during the Free Convertibility Period.
    
	
Settlement Terms:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Settlement   Date:
    	
 
    	
The   date one Settlement Cycle following the final day of the relevant “Cash   Settlement Averaging Period”; provided   that the Settlement Date will not be prior to the Exchange Business Day   immediately following the date Counterparty provides the Notice of Delivery   Obligation prior to 5:00 PM, New York City time.
    
	
 
    	
 
    	
 
    
	
Delivery   Obligation:
    	
 
    	
In   lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity   Definitions, and subject to “Notice of Exercise” above, in respect of the   aggregate number of Options exercised in respect of any Exercise Date   occurring in relation to the relevant Conversion Date, Dealer will deliver to   Counterparty, on the related Settlement Date, (a) a number of Shares   equal to the aggregate number of Shares, if any, that Counterparty would be   obligated to deliver to the holder(s) of the Relevant Convertible   Securities converted on such Conversion Date pursuant to   Section 4.03(a) of the Supplemental Indenture (except that such   aggregate number of Shares shall be determined without taking into   consideration any rounding pursuant to Section 4.03(e) of the   Supplemental Indenture and shall be rounded down to the nearest whole number)   and (b) an amount of cash in USD equal to the aggregate amount of cash,   if any, in excess of USD1,000 per Convertible Security (in denominations of   USD1,000) that Counterparty would be obligated to deliver to   holder(s) pursuant to Section 4.03(a) of the Supplemental   Indenture and cash in lieu of fractional Shares, if any, resulting from such   rounding, as if Counterparty had elected to satisfy its conversion obligation   in respect of such Relevant Convertible Securities by the Convertible   Security Settlement Method, notwithstanding any different actual election by   Counterparty with respect to the settlement of such Convertible Securities   (the “Convertible Obligation”); provided that such obligation shall be   determined excluding any Shares and/or cash that Counterparty is obligated to   deliver to holder(s) of the Relevant Convertible Securities as a result   of any adjustments to the Conversion Rate pursuant to Sections 4.04(f),   4.04(g) or 4.06 of the Supplemental Indenture (the “Excluded Adjustment   Provisions”) (and, for the avoidance of doubt, the Delivery Obligation shall   not include any interest payment on the Relevant Convertible Securities that   the Counterparty is (or would have been) obligated to deliver to   holder(s) of the Relevant Convertible Securities for such Conversion   Date); and provided further that if such exercise relates to the conversion   of Relevant Convertible Securities in connection with which holders thereof   are entitled to receive additional Shares and/or cash pursuant to the   adjustments to the Conversion Rate set forth in Section 4.06 of the   Supplemental Indenture, then, notwithstanding the foregoing, the Delivery   Obligation shall include such additional Shares and/or cash, except that the   Delivery Obligation shall be capped so that the value of the Delivery   Obligation per Option (with the value of any Shares included in the Delivery   Obligation determined
    

 

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by   the Calculation Agent using the “Daily VWAP” on the last day of the relevant   “Cash Settlement Averaging Period”) does not exceed the amount as determined   by the Calculation Agent that would be payable by Dealer pursuant to   Section 6 of the Agreement if such Conversion Date were an Early   Termination Date resulting from an Additional Termination Event with respect   to which the Transaction) was the sole Affected Transaction and Counterparty   was the sole Affected Party, determined without regard to   Section 8(a) of this Confirmation (except that, for purposes of   determining such amount (x) the Number of Options shall be deemed to be   equal to the number of Options exercised on such Exercise Date, (y) such   amount payable will be determined as if Section 4.06 of the Supplemental   Indenture were deleted and (z) the value of any Shares shall be the   “Daily VWAP” on the last day of the relevant “Cash Settlement Averaging   Period” and consequences of the announcement and occurrence of the event   giving rise to the Make-Whole Fundamental Change shall be ignored for all   other purposes), and if the Delivery Obligation is so capped, such capped   Delivery Obligation shall comprise, first, Shares up to the amount of Shares   deliverable under the uncapped Delivery Obligation and then, with respect to   any remaining value, cash. Notwithstanding the foregoing, and in addition to   the cap described in the further proviso to the preceding sentence, in all   events the Delivery Obligation shall be capped so that the value of the   Delivery Obligation does not exceed the value of the consideration delivered   to holders of such Relevant Convertible Securities in respect of the   conversion thereof (with such consideration determined based on the actual   settlement method elected by Counterparty with respect to such Relevant   Convertible Securities instead of the Convertible Security Settlement Method   and with the value of any Shares included in either the Delivery Obligation   or such consideration determined by the Calculation Agent using the opening   price of the Shares on the Exchange on the Settlement Date) minus USD1,000   per Relevant Convertible Security.
    
	
 
    	
 
    	
 
    
	
Convertible   Security Settlement Method:
    	
 
    	
For   any Relevant Convertible Securities, if Counterparty has (i) notified   Dealer in the related Notice of Exercise or in the Notice of Convertible   Security Settlement Method, as the case may be, that it has elected to   satisfy its conversion obligation in respect of such Relevant Convertible   Securities in cash or in a combination of cash and Shares (a “Combination   Election”) in accordance with Section 4.03(a)(iii) of the   Supplemental Indenture with a “Specified Dollar Amount” of at least USD1,000   and (ii) provided in the related Notice of Exercise or in the Notice of   Convertible Security Settlement Method, as the case may be, the   representations and the acknowledgment contained in Settlement Method   Election Conditions below, the Convertible Security Settlement Method shall   be the settlement method actually so elected by Counterparty in respect of   such Relevant Convertible Securities; otherwise, the Convertible Security   Settlement Method shall (i) assume Counterparty had made a Combination   Election with respect to such Relevant Convertible Securities with a   “Specified Dollar Amount” of USD1,000 per Relevant Convertible Security and   (ii) be calculated as if the relevant “Cash Settlement Averaging Period”   pursuant to Section 1.02 of the Indenture consisted of 40 “Trading Days”   commencing on (x) the third “Scheduled Trading Day” after the Conversion   Date for conversions occurring prior to the Free Convertibility Period or   (y) the 42nd “Scheduled Trading Day” prior to the “Maturity Date” for   conversions occurring during the Free Convertibility Period (and such   extended “Cash Settlement Averaging Period” shall be deemed to be the
    

 

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relevant   “Cash Settlement Averaging Period” for all purposes hereunder).
    
	
 
    	
 
    	
 
    
	
Settlement   Method Election Conditions:
    	
 
    	
(i) A   representation that, on the date of such Notice of Exercise or Notice of   Convertible Security Settlement Method, as applicable, Counterparty is not in   possession of any material non-public information with respect to Counterparty   or the Shares.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii) A   representation that Counterparty is electing the settlement method for the   Relevant Convertible Securities and such Convertible Security Settlement   Method in good faith and not as part of a plan or scheme to evade the   prohibitions of Rule 10b-5 under the Securities Exchange Act of 1934, as   amended (the “Exchange Act”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii) a   representation that Counterparty has not entered into or altered any hedging   transaction relating to the Shares corresponding to or offsetting the   Transaction;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv) a   representation that Counterparty is not electing the settlement method for   the Relevant Convertible Securities and such Convertible Security Settlement   Method to create actual or apparent trading activity in the Shares (or any   security convertible into or exchangeable for the Shares) or to raise or   depress or otherwise manipulate the price of the Shares (or any security   convertible into or exchangeable for the Shares); and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(v) an   acknowledgment by Counterparty that (A) any transaction by Dealer   following Counterparty’s election of the settlement method for the Relevant   Convertible Securities and such Convertible Security Settlement Method shall   be made at Dealer’s sole discretion and for Dealer’s own account and (B) Counterparty   does not have, and shall not attempt to exercise, any influence over how,   when, whether or at what price to effect such transactions, including,   without limitation, the price paid or received per Share pursuant to such   transactions, or whether such transactions are made on any securities   exchange or privately.
    
	
 
    	
 
    	
 
    
	
Notice   of Delivery Obligation:
    	
 
    	
No   later than the Exchange Business Day immediately following the last day of   the relevant “Cash Settlement Averaging Period” Counterparty shall give   Dealer notice of the final number of Shares and/or cash comprising the   Convertible Obligation; provided that,   with respect to any Exercise Date occurring during the Free Convertibility   Period, Counterparty may provide Dealer with a single notice of an aggregate   number of Shares and/or amount of cash comprising the Convertible Obligations   for all Exercise Dates occurring in such period (it being understood, for the   avoidance of doubt, that the requirement of Counterparty to deliver such   notice shall not limit Counterparty’s obligations with respect to Notice of   Exercise or Notice of Convertible Security Settlement Method or Dealer’s   obligations with respect to Delivery Obligation, each as set forth above, in   any way).
    
	
 
    	
 
    	
 
    
	
Other   Applicable Provisions:
    	
 
    	
To   the extent Dealer is obligated to deliver Shares hereunder, the provisions of   Sections 9.1(c), 9.8, 9.9, 9.11 (except that the Representation and Agreement   contained in Section 9.11 of the Equity
    

 

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Definitions   shall be modified by excluding any representations therein relating to   restrictions, obligations, limitations or requirements under applicable   securities laws arising as a result of the fact that Counterparty is the   Issuer of the Shares) and 9.12 of the Equity Definitions will be applicable   as if “Physical Settlement” applied to the Transaction.
    
	
 
    	
 
    	
 
    
	
Restricted   Certificated Shares:
    	
 
    	
Notwithstanding   anything to the contrary in the Equity Definitions, Dealer may, in whole or   in part, deliver Shares required to be delivered to Counterparty hereunder in   certificated form in lieu of delivery through the Clearance System. With   respect to such certificated Shares, the Representation and Agreement   contained in Section 9.11 of the Equity Definitions shall be modified by   deleting the remainder of the provision after the word “encumbrance” in the   fourth line thereof.
    
	
 
    	
 
    	
 
    
	
Share Adjustments:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Method   of Adjustment:
    	
 
    	
Notwithstanding   Section 11.2 of the Equity Definitions, upon the occurrence of any event   or condition set forth in Sections 4.04, 4.05 and 4.12 of the Indenture (an “Adjustment Event”) that results in an adjustment under the   Indenture (other than pursuant to the Excluded Adjustment Provisions), the   Calculation Agent shall make a corresponding adjustment to the terms relevant   to the exercise, settlement or payment of the Transaction. Immediately upon   the occurrence of any Adjustment Event, Counterparty shall notify the   Calculation Agent of such Adjustment Event; and once the adjustments to be   made to the terms of the Indenture and the Convertible Securities in respect   of such Adjustment Event have been determined, Counterparty shall immediately   notify the Calculation Agent in writing of the details of such adjustments. 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   anything to the contrary herein, if Counterparty or its board of directors is   permitted or required to exercise discretion under the terms of the Indenture   with respect to any determination, calculation or adjustment (including,   without limitation, any adjustment under Section 4.05 of the   Supplemental Indenture, any adjustment to the terms of a Merger Supplemental   Indenture or any the volume weighted average price of Shares) (any such   determination, calculation or adjustment, an “Indenture   Determination”) other than a determination of the fair market   value of distributed property or the value of a “unit of Reference Property”   (any such determination, a “Value Determination”,   and together with Indenture Determination, each a “Counterparty   Determination”), if the Calculation Agent determines in good faith   and commercially reasonable manner that (a) any such Indenture   Determination was made subject to manifest error or (b) any Value   Determination is materially incorrect, the Calculation Agent shall make the relevant   determination, calculation or adjustment for purposes of the Transaction and,   for the avoidance of doubt, shall determine any Delivery Obligation and   Settlement Date thereafter as if the Calculation Agent’s determination,   calculation or adjustment was applicable under the Indenture. 
    

 

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For   the avoidance of doubt, Dealer shall not have any delivery obligation   hereunder in respect of any “Distributed Property” delivered by Counterparty   pursuant to the third sentence of Section 4.04(c) of the   Supplemental Indenture or any payment obligation in respect of any cash paid   by Counterparty pursuant to the fourth sentence of   Section 4.04(d) of the Supplemental Indenture (collectively, the “Conversion Rate Adjustment Fallback Provisions”),   and no adjustment shall be made to the terms of the Transaction on account of   any event or condition described in the Conversion Rate Adjustment Fallback   Provisions.
    
	
 
    	
 
    	
 
    
	
Extraordinary Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Merger   Events:
    	
 
    	
Notwithstanding   Section 12.1(b) of the Equity Definitions, a “Merger Event” means   the occurrence of any event or condition set forth in Section 4.07 of   the Indenture.
    
	
 
    	
 
    	
 
    
	
Notice   of Merger Consideration:
    	
 
    	
Upon   the occurrence of a Merger Event that causes the Shares to be converted into   the right to receive more than a single type of consideration (determined   based in part upon any form of stockholder election), Counterparty shall   reasonably promptly (but, in any event prior to the relevant merger date)   notify the Calculation Agent of (i) the weighted average of the types   and amounts of consideration received by the holders of Shares entitled to   receive cash, securities or other property or assets with respect to or in   exchange for such Shares in any Merger Event who affirmatively make such an   election and (ii) the details of the adjustment made under the Indenture   in respect of such Merger Event. In addition, Counterparty shall deliver a   copy of the supplemental indenture effecting such adjustments (a “Merger Supplemental Indenture”) as required under the   Indenture as promptly as practicable following execution thereof.
    
	
 
    	
 
    	
 
    
	
Consequences   of Merger Events:
    	
 
    	
Notwithstanding   Sections 12.2 and 12.3 of the Equity Definitions, upon the occurrence of a   Merger Event that results in an adjustment under the Indenture, the   Calculation Agent shall make a corresponding adjustment to the terms relevant   to the exercise, settlement or payment of the Transaction, subject to the   provision under “Method of Adjustment” above relating to Counterparty Determinations;   provided that such adjustment   shall be made without regard to any adjustment to the Conversion Rate   pursuant to the Excluded Adjustment Provisions; and provided further that the Calculation   Agent may limit or alter any such adjustment referenced in this paragraph so   that the fair value of the Transaction to Dealer is not reduced as a result   of the level of trading characteristics related to the consideration received   pursuant to such Merger Event, that if, with respect to a Merger Event, the   consideration for the Shares includes (or, at the option of a holder of   Shares, may include) shares of an entity or person that is not a corporation   organized under the laws of the United States, any State thereof or the   District of Columbia, Cancellation and Payment (Calculation Agent   Determination) may apply at Dealer’s sole discretion.
    
	
 
    	
 
    	
 
    
	
Nationalization, Insolvency   or Delisting:
    	
 
    	
Cancellation   and Payment (Calculation Agent Determination); provided that, in addition to the provisions of   Section 12.6(a)(iii) of the Equity
    

 

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Definitions,   it shall also constitute a Delisting if the Exchange is located in the United   States and the Shares are not immediately re-listed, re-traded or re-quoted   on any of the New York Stock Exchange, The NASDAQ Global Select Market or The   NASDAQ Global Market (or their respective successors); if the Shares are   immediately re-listed, re-traded or re-quoted on any such exchange or   quotation system, such exchange or quotation system shall thereafter be   deemed to be the Exchange.
    
	
 
    	
 
    	
 
    
	
Additional Disruption Events:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Change   in Law:
    	
 
    	
Applicable; provided that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended   (i) by inserting the parenthetical “(including, for the avoidance of   doubt and without limitation, adoption, effectiveness or promulgation of   regulations authorized or mandated by existing statute)” at the end of clause   (A) thereof, (ii) by the replacement of the word “Shares” with   “Hedge Positions” in clause (X) thereof; and “(iii) by replacing   the phrase “the interpretation” in the third line thereof with the phrase “,   or public announcement of, the formal or informal interpretation”; provided further that Section 12.9(b)(i) of the   Equity Definitions is hereby amended by (1) replacing “either party may   elect” with “Dealer may elect” and (2) replacing “notice to the other   party” with “notice to Counterparty” in the first sentence of such section.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   parties agree that, for the avoidance of doubt, for purposes of   Section 12.9(a)(ii) of the Equity Definitions, “any applicable law   or regulation” and for purposes of Section 5(b)(i) of the   Agreement, “any applicable law”, shall include the Dodd-Frank Wall Street   Reform and Consumer Protection Act of 2010, any rules and regulations   promulgated thereunder and any similar law or regulation (collectively, the “Wall Street Act”), and the consequences specified in   Section 12.9(b)(i) of the Equity Definitions shall apply to any   Change in Law or Illegality, as the case may be, arising from any such act,   rule or regulation. The foregoing constitutes a specific reservation for   purposes of the Wall Street Act.
    
	
 
    	
 
    	
 
    
	
Failure   to Deliver:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Insolvency   Filing:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Disruption:
    	
 
    	
Applicable;   provided that: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)                                     Section 12.9(a)(v) of   the Equity Definitions is hereby amended by inserting the following two   phrases at the end of such Section: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“For   the avoidance of doubt, the term “equity price risk” shall be deemed to   include, but shall not be limited to, stock price and volatility risk. And,   for the further avoidance of doubt, any such transactions or assets referred   to in phrases (A) or (B) above must be available on commercially   reasonable pricing
    

 

10

 

	
 
    	
 
    	
terms.”;   and 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)                                  Section 12.9(b)(iii) of   the Equity Definitions is hereby amended by inserting in the third line   thereof, after the words “to terminate the Transaction”, the words “or a   portion of the Transaction affected by such Hedging Disruption”.
    
	
 
    	
 
    	
 
    
	
Increased   Cost of Hedging:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Hedging   Party:
    	
 
    	
For   all applicable Potential Adjustment Events and Extraordinary Events, Dealer
    
	
 
    	
 
    	
 
    
	
Determining   Party:
    	
 
    	
For   all applicable Extraordinary Events, Dealer
    
	
 
    	
 
    	
 
    
	
Acknowledgements:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Non-Reliance:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Agreements   and Acknowledgements
    	
 
    	
 
    
	
Regarding   Hedging Activities:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
Additional   Acknowledgements:
    	
 
    	
Applicable
    
	
 
    	
 
    	
 
    
	
3.                                      Calculation   Agent:
    	
 
    	
Dealer,   whose judgments, determinations and calculations shall be made in good faith   and in a commercially reasonable manner. Following any determination or   calculation by the Calculation Agent hereunder, upon a request by   Counterparty, the Calculation Agent shall promptly (but in any event within   three Scheduled Trading Days) provide to Counterparty by e-mail to the   e-mail address provided by Counterparty in such request a report (in a   commonly used file format for the storage and manipulation of financial data)   displaying in reasonable detail the basis for such determination or calculation   (including any assumptions used in making such determination or calculation),   it being understood that the Calculation Agent shall not be obligated to   disclose any proprietary models used by it for such determination or   calculation.
    
	
 
    	
 
    	
 
    
	
4.                                      Account   Details:
    	
 
    	
 

Dealer   Payment Instructions:

Royal   Bank of Canada

 

ABA:   021000021

JP   Morgan Chase NY (CHASUS33)

A/C   Royal Bank of Canada, NY Branch (ROYCUS3X)

A/C#:   920-1-033363

FFC   A/C Name: RBC US Transit

Beneficiary   A/C: 012692041499
    

 

11

 

	
5.                                      Offices:
    	
 
    	
The Office of Dealer for the   Transaction is: New York
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Royal Bank of Canada
    
	
 
    	
 
    	
c/o RBC Capital Markets, LLC
    
	
 
    	
 
    	
3   World Financial Center
    
	
 
    	
 
    	
200   Vesey Street
    
	
 
    	
 
    	
New   York, NY 10281
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Office of Counterparty   for the Transaction is: Not Applicable
    
	
 
    	
 
    	
 
    
	
6.                                      Notices:
    	
 
    	
For purposes of this   Confirmation:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address for notices of   communications to Counterparty:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
To:
    	
David   Grawemeyer
    
	
 
    	
 
    	
 
    	
151   Detroit Street
    
	
 
    	
 
    	
 
    	
Denver,   CO 80206
    
	
 
    	
 
    	
 
    	
David.grawemeyer@janus.com
    
	
 
    	
 
    	
 
    	
303-336-5053
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
with   a copy to:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
John   Groneman
    
	
 
    	
 
    	
 
    	
151   Detroit Street
    
	
 
    	
 
    	
 
    	
Denver,   CO 80206
    
	
 
    	
 
    	
 
    	
John.groneman@janus.com
    
	
 
    	
 
    	
 
    	
303-336-7466
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Any   notice or other communication required or permitted to be given to Dealer   (for matters other than operational matters) with respect to this   Confirmation shall be delivered in person or given by facsimile transmission   to Dealer at the following address:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
To:
    	
Royal Bank of Canada
    
	
 
    	
 
    	
 
    	
c/o RBC Capital Markets, LLC
    
	
 
    	
 
    	
 
    	
3   World Financial Center
    
	
 
    	
 
    	
 
    	
200   Vesey Street
    
	
 
    	
 
    	
 
    	
New   York, NY 10281
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Attn:
    	
Structured Derivatives   Documentation
    
	
 
    	
 
    	
 
    	
Telephone:
    	
(212) 858-7000
    
	
 
    	
 
    	
 
    	
Facsimile:
    	
(212)   428-3053
    
	
 
    	
 
    	
 
    	
Email:
    	
SEDDOC@rbccm.com
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Any   notice or other communication concerning operational matters should be sent   by facsimile to RBC Capital Markets, LLC at the above address; Attention:   Back Office; Phone: (212) 858-7000; Facsimile: (212) 858-7033; Email: geda@rbccm.com
    

 

7.                                      Representations, Warranties and Agreements:

 

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

 

(i)                                     On the Trade Date, and as of the date of any election by Counterparty of the Share Termination Alternative under (and as defined in) Section 8(a) below, (A) none of Counterparty and its officers and directors is aware of any material nonpublic information regarding Counterparty or the Shares and (B) all reports and other documents filed by Counterparty with the Securities and Exchange

 

12

 

Commission pursuant to the Exchange Act when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.

 

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

 

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

 

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

 

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

 

(vi)                              On each of the Trade Date and the Premium Payment Date, Counterparty is not, or will not be, “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase 10,734,357 Shares in compliance with the corporate laws of the jurisdiction of its incorporation.

 

(vii)                           The representations and warranties of Counterparty set forth in Article III of an Exchange Agreement dated as of June 14, 2013, between the Counterparty and a holder of the Counterparty’s 3.25% Convertible Senior Notes due 2014 (the “Exchange Agreement”) are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein.

 

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

 

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

 

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

 

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

 

(c)                                  Counterparty acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(2)

 

13

 

thereof.  Accordingly, Counterparty represents and warrants to Dealer that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own account and without a view to the distribution or resale thereof and (iv) the assignment, transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws.

 

(d)                                 Counterparty agrees and acknowledges that Dealer is a “financial institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of Title 11 of the Bankruptcy Code.  The parties hereto further agree and acknowledge that it is the intent of the parties (A) that this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment,” as such term is defined in Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e), 546(g), 548(d)(2), 555 and 560 of the Bankruptcy Code.

 

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

 

(f)                                   Counterparty shall deliver to Dealer an opinion of counsel reasonably acceptable to Dealer, dated as of the Trade Date and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement and such other matters as Dealer may reasonably request.

 

8.                                      Miscellaneous:

 

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

 

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

 

14

 

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

 

(b)                                 Payment by Counterparty. In the event that, following payment of the Premium, (i) an Early Termination Date occurs or is designated with respect to the Transaction as a result of a Termination Event or an Event of Default (other than an Event of Default of the type described in Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Counterparty owes to Dealer an amount pursuant to Section 6 of the Agreement, or (ii) Counterparty owes to Dealer an amount pursuant to Article 12 of the Equity Definitions (including, for the avoidance of doubt, any amount payable in connection with an Extraordinary Event), such amount shall be deemed to be zero.

 

(c)                                  Additional Termination Events.  The occurrence of an Amendment Event that results in a material adverse change to the value of this Transaction to Dealer shall be an Additional Termination Event with respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole Affected Party and Dealer shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement.  For the avoidance of doubt, the relevant Early Termination Amount in respect of an Amendment Event shall be calculated without giving effect to the related amendment, modification, supplement or waiver.

 

“Amendment Event” means that Counterparty amends, modifies, supplements, waives or obtains a waiver in respect of any term of the Indenture or the Convertible Securities governing the principal amount, coupon, maturity, repurchase obligation of Counterparty, redemption right of Counterparty (if any), any term relating to conversion of the Convertible Securities (including changes to the conversion rate, conversion rate adjustment provisions, conversion settlement dates or conversion conditions), or any term that would require consent of the holders of not less than 100% of the principal amount of the Convertible Securities to amend, in each case without the consent of Dealer; provided that entry into a Merger Supplemental Indenture shall not constitute an Amendment Event.

 

15

 

If the Amendment Event does not result in an Additional Termination Event, (x) the Calculation Agent shall determine the relevant Delivery Obligation and Settlement Date for any Option exercised thereafter in accordance with this Confirmation by referring to the relevant provisions of the Indenture without giving effect to such amendment or supplement and (y) such supplement or amendment shall be disregarded for all other purposes hereunder, unless the parties agree otherwise in writing.

 

(d)                                 Dividends. If at any time during the period from and including the Effective Date, to but excluding the Expiration Date, (i) an ex-dividend date for a regular quarterly cash dividend occurs with respect to the Shares (an “Ex-Dividend Date”), and that dividend is less than the Regular Dividend on a per Share basis or (ii) if no Ex-Dividend date for a regular quarterly cash dividend occurs with respect to the Shares in any quarterly dividend period of Counterparty, then the Calculation Agent will make a corresponding adjustment to any one or more of the Number of Options, Conversion Rate and/or any other variable relevant to the exercise, settlement or payment for the Transaction to preserve the fair value of the Options to Dealer after taking into account such dividend or lack thereof. “Regular Dividend” shall mean USD 0.07 per Share per quarter. Upon any adjustment to the Initial Dividend Threshold (as defined in the Indenture) for the Convertible Notes pursuant to Section 4.04(d) or Section 4.07 of the Indenture, the Calculation Agent will make a corresponding adjustment to the Regular Dividend for the Transaction.

 

(e)                                  Disposition of Hedge Shares.Counterparty hereby agrees that if, in the good faith reasonable judgment of Dealer, any Shares (the “Hedge Shares”) acquired by Dealer for the purpose of hedging its obligations pursuant to the Transaction cannot be freely sold in the public market by Dealer without registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Dealer to sell the Hedge Shares in a registered offering, make available to Dealer an effective registration statement under the Securities Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in form and substance satisfactory to Dealer, substantially in the form of an underwriting agreement for a registered offering, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities; provided, however, that if Dealer, in its sole reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this Section 8(e) shall apply at the election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance satisfactory to Dealer, including customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such other documentation as is customary for private placements agreements, all reasonably acceptable to Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in its reasonable judgment, to compensate Dealer for any discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the “Daily VWAP” on such Exchange Business Days, and in the amounts, requested by Dealer.

 

(f)                                   Repurchase and Conversion Rate Adjustment Notices.  Counterparty shall, at least 10 Scheduled Trading Days prior to effecting any repurchase of Shares or consummating or otherwise executing or engaging in any transaction or event (a “Conversion Rate Adjustment Event”) that would lead to an increase in the Conversion Rate (as such term is defined in the Indenture), give Dealer a written notice of such repurchase or Conversion Rate Adjustment Event (a “Repurchase Notice”) if, following such repurchase or Conversion Rate Adjustment Event, the Notice Percentage as determined on the date of such Repurchase Notice will be greater by 0.5% than the Notice Percentage included in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof (calculated as if this Transaction had been entered into as of such date)).  The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of which is the Number of Shares and the denominator of which is the number of Shares outstanding on such day.  In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the day and in the manner specified in this Section 8(f), then Counterparty agrees to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or actions in

 

16

 

respect thereof), joint or several, to which such Indemnified Party may become subject under applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure.  If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Counterparty will reimburse any Indemnified Party for all expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with the investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Counterparty.  This indemnity shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Dealer.

 

(g)                                  Covenant to Notify of Potential Adjustment Event, Merger Event or any other Extraordinary Event.  Counterparty covenants to provide written notice to Dealer upon obtaining knowledge of the occurrence of any event that would constitute a Potential Adjustment Event, a Merger Event or any other Extraordinary Event; provided that should Counterparty be in possession of material non-public information regarding Counterparty, Counterparty shall not communicate such information to Dealer.

 

(h)                                 Rule 10b-18.

 

(i)                                     Except as disclosed to Dealer in writing prior to the date on which the offering of the Convertible Securities was first announced, Counterparty represents and warrants to Dealer that it has not made any purchases of blocks by or for itself or any of its Affiliated Purchasers pursuant to the one block purchase per week exception in Rule 10b-18(b)(4) under the Exchange Act during each of the four calendar weeks preceding such date (“Rule 10b-18 purchase,” “blocks” and “Affiliated Purchaser” each as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)). Counterparty agrees and acknowledges that it shall not, and shall cause its affiliates and Affiliated Purchasers not to, directly or indirectly (including by means of a derivative instrument) enter into any transaction to purchase any Shares during the period beginning on such date and ending on the day on which Dealer has informed Counterparty in writing that it has completed all purchases of Shares to hedge initially its exposure to the Transaction.

 

(ii)                                  On any day during any “Cash Settlement Averaging Period”, neither Counterparty nor any “affiliate” or “affiliated purchaser” (each as defined in Rule 10b-18) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable or exercisable for Shares, except through Dealer.

 

(iii)                               Counterparty agrees that it (A) will not, on any day during any “Cash Settlement Averaging Period,” make, or permit to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction unless such public announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares; (B) shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify Dealer following any such announcement that such announcement has been made; and (C) shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide Dealer with written notice specifying (i) Counterparty’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement date that were not effected through Dealer or its affiliates and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the announcement date. Such written notice shall be deemed to be a certification by Counterparty to Dealer that such information is true and correct. In addition, Counterparty shall promptly notify Dealer of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders. “Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

 

17

 

(iv)                              During the Hedge Period, Dealer agrees to use commercially reasonable efforts to make all purchases of Shares in a manner that would comply with the limitations set forth in clauses (b)(1),(b)(2), (b)(3), (b)(4) and (c) of Rule 10b-18, as if such rule was applicable to such purchases.

 

(i)                                     Regulation M.  (x) Counterparty (A) was not on the date on which the offering of the Convertible Securities was first announced, has not since such date to the date hereof, and is not on the date hereof, engaged in a distribution, as such term is used in Regulation M under the Exchange Act, of any securities of Counterparty, other than the distribution of the Convertible Securities and (B) shall not engage in any “distribution,” as such term is defined in Regulation M, other than a distribution meeting the requirements of the exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day immediately following the Trade Date, and (y)(A) on any day during any “Cash Settlement Averaging Period,” the Shares or securities that are convertible into, or exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted period,” as defined in Regulation M and (B) Counterparty shall not engage in any “distribution,” as such term is defined in Regulation M, other than a distribution meeting the requirements of the exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day immediately following the last day in such “Cash Settlement Averaging Period.”

 

(j)                                    Transfer or Assignment.  Either party may transfer any of its rights or obligations under the Transaction with the prior written consent of the non-transferring party, such consent not to be unreasonably withheld or delayed. For the avoidance of doubt, Dealer may condition its consent on any of the following, without limitation: (i) the receipt by Dealer of opinions and documents reasonably satisfactory to Dealer in connection with such assignment, (ii) such assignment being effected on terms reasonably satisfactory to Dealer with respect to any legal and regulatory requirements relevant to Dealer, (iii) the transferee being a United States person (as defined in the Internal Revenue Code of 1986, as amended), (iv) that, in Dealer’s reasonable determination, Dealer will not be required, as a result of such transfer, to pay the transferee an amount under Section 2(d)(i)(4) of the Agreement greater than the amount, if any, that Dealer would have been required to pay to Counterparty in the absence of such transfer, (v) that, in Dealer’s reasonable determination, no Event of Default, Potential Event of Default or Termination Event will occur as a result of such transfer and (vi) Counterparty continuing to be obligated to provide notices hereunder relating to the Convertible Securities and continuing to be obligated with respect to “Disposition of Hedge Shares” and “Repurchase and Conversion Rate Adjustment Notices” above.  In addition, Dealer may transfer or assign without any consent of the Counterparty its rights and obligations hereunder and under the Agreement (1) in whole or in part to any affiliate of Dealer of credit quality at least equivalent to that of Dealer as of the Trade Date, (2) in whole or in part to any other affiliate of Dealer with respect to which Counterparty shall have received a full guaranty of such affiliate’s obligations from Dealer in form and substance reasonably satisfactory to Counterparty or (3) if at the time of such transfer or assignment an Excess Ownership Position exists, in part to any other third party with a rating for its long term, unsecured and unsubordinated indebtedness equal to or better than the lesser of (I) the credit rating of Dealer at the time of the transfer and (II) A- by Standard and Poor’s Rating Group, Inc. or its successor (“S&P”), or A3 by Moody’s Investor Service, Inc. (“Moody’s”) or, if either S&P or Moody’s ceases to rate such debt, at least an equivalent or better rating by a substitute rating agency mutually agreed by Counterparty and Dealer, in the case of this clause (3), to the minimum extent required such that an Excess Ownership Position no longer exists after giving effect to such partial transfer or assignment, in each case of the immediately preceding clauses (1), (2) and (3), only if an Event of Default, Potential Event of Default or Termination Event will not occur as a result of such transfer or assignment.  At any time at which any Excess Ownership Position exists, if Dealer, in its discretion, is unable to effect a transfer or assignment to a third party in accordance with the requirements set forth above after using its commercially reasonable efforts on pricing terms and within a time period reasonably acceptable to Dealer such that an Excess Ownership Position no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership Position no longer exists. In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section 8(a) of this Confirmation as if (i) an Early Termination Date had been designated in respect of an Additional Termination Event under a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty were the sole Affected Party with respect to such Additional Termination Event and (iii) the Terminated Portion of the Transaction shall be the only Terminated Transaction. “Excess Ownership Position” means any of the following: (i) the Equity Percentage exceeds 9.0%, (ii) Dealer or any “affiliate” or “associate” of Dealer would own in excess of 13.0% of the outstanding Shares for purposes of Section 203 of the Delaware General Corporation Law or (iii) Dealer, Dealer

 

18

 

Group (as defined below) or any person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under any federal, state or local laws, regulations or regulatory orders applicable to ownership of Shares (“Applicable Laws”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval by a state or federal regulator) of a Dealer Person under Applicable Laws and with respect to which such requirements have not been met or the relevant approval has not been received or that would give rise to any consequences under the constitutive documents of Counterparty or any contract or agreement to which Counterparty is a party, as reasonably determined by Dealer, in each case minus (y) 1% of the number of Shares outstanding on the date of determination.  The “Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates or any other person subject to aggregation with Dealer, for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act, or of any “group” (within the meaning of Section 13) of which Dealer is or may be deemed to be a part (Dealer and any such affiliates, persons and groups, collectively, “Dealer Group”), beneficially owns (within the meaning of Section 13 of the Exchange Act), without duplication, on such day and (B) the denominator of which is the number of Shares outstanding on such day.

 

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

 

(i)                                     in such notice, Dealer will specify to Counterparty the related Staggered Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but not prior to the beginning of the related “Cash Settlement Averaging Period” or delivery times and how it will allocate the Shares it is required to deliver under “Delivery Obligation” (above) among the Staggered Settlement Dates or delivery times; and

 

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

 

(l)                                     Right to Extend. Dealer may postpone any Exercise Date or Settlement Date or any other date of valuation or delivery by Dealer with respect to some or all of the relevant Options (in which event the Calculation Agent shall make appropriate adjustments to the Delivery Obligation) if Dealer determines, in its reasonable discretion, that such extension is reasonably necessary or appropriate to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions in the cash market, the stock loan market or any other relevant market.

 

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

 

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

 

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

 

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

 

19

 

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

 

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

 

(s)                                   Early Unwind. In the event the exchange by Counterparty of the Existing Notes for the New Notes (each as defined in each Exchange Agreement) is not consummated with each Holder (as defined in the Exchange Agreement) pursuant to the Exchange Agreement for any reason by the close of business in New York on June 19, 2013 (or such later date as agreed upon by the parties) (June 19, 2013 or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (x) the Transaction and all of the respective rights and obligations of Dealer and Counterparty thereunder shall be cancelled and terminated and (y) Counterparty shall assume, or reimburse the cost of, derivatives and other hedging activities entered into by Dealer or one or more of its affiliates in connection with hedging the Transaction and the unwind of such hedging activities, and purchase any Shares purchased by Dealer or one or more of its affiliates in connection with hedging the Transaction at the cost at which Dealer or such affiliates purchased such Shares. Following such termination, cancellation and payment, subject to the preceding sentence, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of either party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date.

 

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

 

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

 

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

 

20

 

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

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning to Dealer a facsimile of the fully-executed Confirmation to Dealer at (212) 428-3053.  Originals shall be provided for your execution upon your request.

 

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

 

 

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

 

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

 

	
JANUS CAPITAL GROUP INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Bruce Koepfgen
    	
 
    
	
Name:
    	
Bruce   Koepfgen
    	
 
    
	
Title:
    	
Executive   Vice President and Chief Financial Officer
    	
 
    

 

 

SCHEDULE A

 

 

SCHEDULE BExhibit 10.3

 

	

    	
RBC Capital Markets, LLC
    
	
3 World Financial Center
    
	
200 Vesey Street
    
	
New York, NY10281
    
	
Telephone: (212) 858-7000
    

 

 

	
DATE:
    	
June 14, 2013
    
	
 
    	
 
    
	
TO:
    	
Janus   Capital Group Inc.
    
	
ATTENTION:
    	
David   Grawemeyer
    
	
TELEPHONE:
    	
(303) 336-5053
    
	
 
    	
 
    
	
FROM:
    	
RBC   Capital Markets, LLC
    
	
 
    	
as   agent for
    
	
 
    	
Royal   Bank of Canada
    
	
TELEPHONE:
    	
(212)   858-7000
    
	
FACSIMILE:
    	
(212)   428-3053
    
	
 
    	
 
    
	
SUBJECT:
    	
Issuer Warrant Transaction
    
	
 
    	
 
    
	
REFERENCE   NUMBER(S):
    	
JNS-E2-C1
    

 

The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of the above-referenced transaction entered into on the Trade Date specified below (the “Transaction”) between Royal Bank of Canada (“Dealer”) and Janus Capital Group Inc. (“Issuer”).  The additional terms of the Transaction are as set forth in the Trade Notification in the form of Schedule A hereto (the “Trade Notification”), which shall reference this Confirmation and supplement, form a part of, and be subject to this Confirmation.  This communication, as supplemented by the Trade Notification, constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.

 

Disclosure of Agency Relationship

 

Dealer has appointed, as its agent, its indirect wholly-owned subsidiary, RBC Capital Markets, LLC (“RBCCM”), for purposes of conducting, on Dealer’s behalf, a business in privately negotiated transactions in options and other derivatives.  You hereby are advised that Dealer, the principal and stated counterparty in such transactions, duly has authorized RBCCM to market, structure, negotiate, document, price, execute and hedge transactions in over-the-counter derivative products.

 

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

 

This Confirmation, as supplemented by the Trade Notification, evidences a complete and binding agreement between Dealer and Issuer as to the terms of the Transaction to which this Confirmation, as supplemented by the Trade Notification, relates.  This Confirmation and the Trade Notification shall be subject to an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement as if Dealer and Issuer had executed an agreement in such form (without any Schedule except for (i) the election of US Dollars (“USD”) as the Termination Currency and (ii) the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement will apply to Dealer and to Counterparty with (x) the phrase “, or becoming capable at such time of being declared,” deleted from Section 5(a)(vi)(1) of the Agreement and (y) the “Threshold Amount” with respect to Dealer being three percent (3%) of shareholders’ equity of Royal Bank of Canada as of the Trade Date and with respect to Counterparty,  USD 50.0 million).  For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

 

 

All provisions contained in, or incorporated by reference in, the Agreement will govern this Confirmation and the Trade Notification except as expressly modified herein.  In the event of any inconsistency between this Confirmation, the Trade Notification and either the Definitions or the Agreement, the following will prevail for purposes of the Transaction in order of precedence indicated: (i) the Trade Notification, (ii) this Confirmation, (iii) the Definitions, (iv) the Agreement (without regard to the Trade Notification and the Confirmation).  For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of this Confirmation, the Trade Notification, the Definitions or the Agreement, shall not be construed to exclude or limit the application of any other provision of this Confirmation, the Trade Notification, the Definitions or the Agreement.

 

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

 

	
General:
    	
 
    
	
 
    	
 
    
	
Trade   Date:
    	
June 14,   2013
    
	
 
    	
 
    
	
Effective   Date:
    	
June 14,   2013, or such other date as agreed between the parties, subject to   Section 8(a) below
    
	
 
    	
 
    
	
Components:
    	
The   Transaction will be divided into individual Components, each with the terms   set forth in this Confirmation, and, in particular, with the Number of   Warrants and Expiration Date set forth in this Confirmation. The payments and   deliveries to be made upon settlement of the Transaction will be determined   separately for each Component as if each Component were a separate   Transaction under the Agreement.
    
	
 
    	
 
    
	
Warrant   Style:
    	
European
    
	
 
    	
 
    
	
Warrant   Type:
    	
Call
    
	
 
    	
 
    
	
Seller:
    	
Issuer
    
	
 
    	
 
    
	
Buyer:
    	
Dealer
    
	
 
    	
 
    
	
Shares:
    	
The   common stock of Issuer, par value USD0.001 per share (Ticker Symbol: “JNS”).
    
	
 
    	
 
    
	
Number   of Warrants:
    	
For   each Component, as provided in Annex A to this Confirmation. For the   avoidance of doubt, the Number of Warrants shall be reduced by any Warrants   exercised or deemed exercised hereunder. In no event will the Number of   Warrants be less than zero.
    
	
 
    	
 
    
	
Warrant   Entitlement:
    	
One   Share per Warrant
    
	
 
    	
 
    
	
Strike   Price:
    	
USD   $12.601
    
	
 
    	
 
    
	
 
    	
Notwithstanding   anything to the contrary in the Agreement, this Confirmation or the   Definitions, in no event shall the Strike Price be subject to adjustment to   the extent that, after giving effect to such adjustment, the Strike Price   would be less than the Hedge Period Reference Price, except for any   adjustment in connection with stock splits or similar changes to Issuer’s   capitalization.
    

 

2

 

	
Hedge   Period Reference Price:
    	
As   specified in the Trade Notification, to be the average of the VWAP Prices for   the Exchange Business Days during the period beginning on the Trade Date and   ending on the day on which Dealer has informed Counterparty that Dealer has   completed all hedging activities and transactions necessary in order to hedge   initially its exposure with respect to the Transaction (the “Hedge Period”).
    
	
 
    	
 
    
	
Premium:
    	
As   specified in the Trade Notification, to be determined by reference to the   table set forth in Schedule B and based on the Hedge Period Reference Price.   If the exact Hedge Period Reference Price does not appear in such table, the   Premium shall be determined by linear interpolation or extrapolation using   the two closest Hedge Period Reference Prices appearing in such table.
    
	
 
    	
 
    
	
Premium   Payment Date:
    	
As   specified in the Trade Notification, to be the third Currency Business Day   following the last day of the Hedge Period.
    
	
 
    	
 
    
	
Exchange:
    	
New   York Stock Exchange
    
	
 
    	
 
    
	
Related   Exchanges:
    	
All   Exchanges
    
	
 
    	
 
    
	
Procedures   for Exercise:
    	
 
    
	
 
    	
 
    
	
In respect of any Component:
    	
 
    
	
 
    	
 
    
	
Expiration   Date:
    	
As   provided in Annex A to this Confirmation (or, if such date is not a   Scheduled Trading Day, the next following Scheduled Trading Day that is not   already an Expiration Date for another Component); provided that if that date is a Disrupted Day, the   Expiration Date for such Component shall be the first succeeding Scheduled   Trading Day that is not a Disrupted Day and is not or is not deemed to be an   Expiration Date in respect of any other Component of the Transaction   hereunder; and provided further   that if the Expiration Date has not occurred pursuant to the preceding   proviso as of the Final Disruption Date, Dealer may elect in its discretion   that the Final Disruption Date shall be the Expiration Date (irrespective of   whether such date is an Expiration Date in respect of any other Component for   the Transaction) and, notwithstanding anything to the contrary in this   Confirmation or the Definitions, the Relevant Price for such Expiration Date   shall be the prevailing market value per Share determined by the Calculation   Agent in a commercially reasonable manner. “Final Disruption Date” means the eighth Scheduled Trading   Day following the Expiration Date for the Component with the latest   Expiration Date, determined without regard to the provisos to the preceding   sentence. Notwithstanding the   foregoing and anything to the contrary in the Equity Definitions, if a Market   Disruption Event occurs on any Expiration Date, the Calculation Agent may   determine that such Expiration Date is a Disrupted Day only in part, in which   case (i) the Calculation Agent shall make adjustments to the Number of   Warrants for the relevant Component for which such day shall be the   Expiration Date and shall designate the Scheduled Trading Day determined in   the manner described in the immediately preceding sentence as the Expiration   Date for the remaining Warrants for such Component, and (ii) the   VWAP Price for such Disrupted Day shall be determined by the Calculation   Agent based on transactions in the Shares on such Disrupted Day taking into   account the nature and duration of such Market Disruption Event on such day. Any Scheduled Trading Day on which, as of   the
    

 

3

 

	
 
    	
date hereof, the Exchange is scheduled to close   prior to its normal close of trading shall be deemed not to be a Scheduled   Trading Day; if a closure of the Exchange prior to its normal close of   trading on any Scheduled Trading Day is scheduled following the date hereof,   then such Scheduled Trading Day shall be deemed to be a Disrupted Day in   full.  Section 6.6 of the Equity   Definitions shall not apply to any Valuation Date occurring on an Expiration   Date.

 
    
	
Automatic   Exercise:
    	
Applicable;   and means that the Number of Warrants for each Component will be deemed to be   automatically exercised at the Expiration Time on the Expiration Date for   such Component unless Dealer notifies Seller (by telephone or in writing)   prior to the Expiration Time on the Expiration Date that it does not wish   Automatic Exercise to occur, in which case Automatic Exercise will not apply.
    
	
 
    	
 
    
	
Market   Disruption Event:
    	
Section 6.3(a) of   the Equity Definitions is hereby amended (A) by deleting the words   “during the one hour period that ends at the relevant Valuation Time, Latest   Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the   case may be,” in clause (ii) thereof and (B) by replacing the   words “or (iii) an Early Closure.” therein with “(iii) an Early   Closure, or (iv) a Regulatory Disruption.”
    
	
 
    	
 
    
	
 
    	
Section 6.3(d) of   the Equity Definitions is hereby amended by deleting the remainder of the   provision following the term “Scheduled Closing Time” in the fourth line   thereof.
    
	
 
    	
 
    
	
Regulatory   Disruption:
    	
Any   event that Dealer, in good faith and in its commercially reasonable   discretion, upon advice of counsel, determines makes it appropriate with   regard to any legal, regulatory or self-regulatory requirements or related   policies and procedures, for Dealer to refrain from or decrease any market   activity in connection with the Transaction. Dealer shall notify Issuer as   soon as reasonably practicable that a Regulatory Disruption has occurred and the   Expiration Dates affected by it.
    
	
 
    	
 
    
	
Settlement   Terms:
    	
 
    
	
 
    	
 
    
	
In respect of any Component:
    	
 
    
	
 
    	
 
    
	
Settlement   Currency:
    	
USD
    
	
 
    	
 
    
	
Settlement   Method Election:
    	
Applicable;   provided that (i) references to “Physical Settlement” in   Section 7.1 of the Equity Definitions shall be replaced by references to   “Net Share Settlement”; (ii) Issuer may elect Cash Settlement only if   Issuer represents and warrants to Dealer in writing on the date of such   election that (A) Issuer is not in possession of any material non-public   information regarding Issuer or the Shares, (B) Issuer is electing Cash   Settlement in good faith and not as part of a plan or scheme to evade   compliance with the federal securities laws, and (C) the assets of   Issuer at their fair valuation exceed the liabilities of Issuer (including   contingent liabilities), and Issuer has the ability to pay its debts and   obligations as such debts mature; and (iii) the same election of   settlement method shall apply to all Expiration Dates hereunder.
    
	
 
    	
 
    
	
Electing   Party:
    	
Issuer
    
	
 
    	
 
    
	
Settlement   Method Election Date:
    	
The   third Scheduled Trading Day immediately preceding the scheduled First   Expiration Date.
    

 

4

 

	
Default   Settlement Method:
    	
Net   Share Settlement
    
	
 
    	
 
    
	
Net   Share Settlement:
    	
In   lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity   Definitions, for each Component, Issuer shall deliver to Dealer on the   relevant Settlement Date a number of Shares equal to the Number of Shares to   be Delivered for such Component to the account specified by Dealer and cash   in lieu of any fractional Share valued at the Relevant Price on the Valuation   Date corresponding to such Settlement Date, subject to the provisions set   forth under “Registration/Private Placement Procedures” below.
    
	
 
    	
 
    
	
Number   of Shares to be Delivered:
    	
In   respect of any Exercise Date, subject to the last sentence of   Section 9.5 of the Equity Definitions, the Net Share Settlement Amount divided by the VWAP Price.
    
	
 
    	
 
    
	
 
    	
The   Number of Shares to be Delivered shall be delivered by Issuer to Dealer no   later than 5:00 P.M. (local time in New York City) on the relevant   Settlement Date.
    
	
 
    	
 
    
	
Net   Share Settlement Amount:
    	
The   product of (i) the number of Warrants exercised or deemed exercised on   the relevant Exercise Date, (ii) the Warrant Entitlement and   (iii) the excess, if any, of the VWAP Price on the relevant Valuation   Date over the Strike Price.
    
	
 
    	
 
    
	
Cash   Settlement:
    	
If   Cash Settlement is applicable, on the relevant Settlement Date, Issuer   shall pay to Dealer an amount of cash in USD equal to the Net Share   Settlement Amount for such Settlement Date.
    
	
 
    	
 
    
	
VWAP   Price:
    	
For   any Valuation Date or Exchange Business Day during the Hedge Period, the   Rule 10b-18 dollar volume weighted average price per Share for such   Valuation Date or Exchange Business Day based on transactions executed during   such Valuation Date or Exchange Business Day, as reported on Bloomberg   Page “JNS <Equity> AQR” (or any successor thereto) or, if such   price is not so reported or is manifestly incorrect, as determined by the   Calculation Agent using a volume weighted method.
    
	
 
    	
 
    
	
Other   Applicable Provisions:
    	
The   provisions of Sections 9.1(c), 9.8, 9.9, 9.11 (except that, with respect   to any Private Placement Settlement, the Representation and Agreement   contained in Section 9.11 of the Equity Definitions shall be modified by   excluding any representations therein relating to restrictions, obligations,   limitations or requirements under applicable securities laws arising as a   result of the fact that Seller is the Issuer of the Shares) and 9.12 of the   Equity Definitions will be applicable as if “Physical Settlement” applied to   the Transaction.
    
	
 
    	
 
    
	
Dividends:
    	
 
    
	
 
    	
 
    
	
Extraordinary   Dividend:
    	
Any   Dividend that has an ex-dividend date occurring on or after the Trade Date   and on or prior to the date on which Issuer satisfies all of its delivery   obligations hereunder.
    
	
 
    	
 
    
	
Dividend:
    	
Any   dividend, other than a Regular Dividend, or distribution on the Shares (other   than any dividend or distribution of the type described in Sections 11.2(e)(i),   11.2(e)(ii)(A) or 11.2(e)(ii)(B) of the Equity Definitions).
    

 

5

 

	
Regular   Dividend:
    	
A   regular quarterly dividend of up to USD 0.07 per Share per quarterly dividend   period of Issuer.
    
	
 
    	
 
    
	
Adjustments:
    	
 
    
	
 
    	
 
    
	
Method   of Adjustment:
    	
Calculation   Agent Adjustment; provided that   adjustments may be made to account for changes in volatility, expected   dividends, stock loan rate and liquidity relative to the relevant Shares.
    
	
 
    	
 
    
	
Extraordinary   Events:
    	
 
    
	
 
    	
 
    
	
New   Shares:
    	
In   the definition of New Shares in Section 12.1(i) of the Equity   Definitions, (a) the text in clause (i) thereof shall be   deleted in its entirety (including the word “and” following such   clause (i)) and replaced with “publicly quoted, traded or listed on any   of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ   Global Market (or their respective successors).”
    
	
 
    	
 
    
	
Modified   Calculation Agent Adjustment:
    	
If,   in respect of any Merger Event to which Modified Calculation Agent Adjustment   applies, the adjustments to be made in accordance with   Section 12.2(e)(i) of the Equity Definitions would result in Issuer   being different from the issuer of the Shares, then with respect to such   Merger Event, as a condition precedent to the adjustments contemplated in   Section 12.2(e)(i) of the Equity Definitions, Dealer, the Issuer of   the Affected Shares and the entity that will be the Issuer of the New Shares   shall, prior to the Merger Date, have entered into such documentation   containing representations, warranties and agreements relating to securities   law and other issues as requested by Dealer that Dealer has determined, in   its reasonable discretion, to be reasonably necessary to allow Dealer to   continue as a party to the Transaction, as adjusted under   Section 12.2(e)(i) of the Equity Definitions, and to preserve its   hedging or hedge unwind activities in connection with the Transaction in a   manner compliant with applicable legal, regulatory or self-regulatory   requirements, or with related policies and procedures applicable to Dealer,   and if such conditions are not met or if the Calculation Agent determines   that no adjustment that it could make under Section 12.2(e)(i) of   the Equity Definitions will produce a commercially reasonable result, then   the consequences set forth in Section 12.2(e)(ii) of the Equity   Definitions shall apply.
    
	
 
    	
 
    
	
Announcement   Event:
    	
With   respect to any Component, if an Announcement Event occurs, the Calculation   Agent will determine the economic effect of the Announcement Event on the   theoretical value of such Component (i) on or after the relevant   Announcement Date and (ii) on the Valuation Date or any earlier date of   termination or cancellation for such Component (in each case, which may   include, without limitation, any actual or expected change in volatility,   dividends, correlation, stock loan rate or liquidity relevant to the Shares   or to such Component), if, in the case of clause (i) or (ii), such   economic effect is material, the Calculation Agent may (x) adjust the   terms of such Component to reflect such economic effect and   (y) determine the effective date of such adjustment. “Announcement Event” shall mean the occurrence of an   Announcement Date in respect of a Merger Event (for the avoidance of doubt,   determined without regard to the language in the definition of “Merger Event”   following the definition of “Reverse Merger” therein) or Tender Offer,   notwithstanding the fact that such Merger Date or Tender Offer Date may not,   or may not be anticipated
    

 

6

 

	
 
    	
to,   occur on or prior to the Valuation Date for the related Component. The   definition of “Announcement Date” in   Section 12.1(l) of the Equity Definitions shall be amended by   (a) replacing the word “leads” in the third line thereof and in the   fifth line thereof with the words “could lead (as determined by the   Calculation Agent)”, (b) deleting the word “firm” in the second and   fourth lines thereof (c) replacing the words “voting shares” in the   fifth line thereof with the word “Shares”, (d) inserting the words “by   any entity” after the word “announcement” in the second and the fourth lines   thereof, (e) inserting the words “or to explore the possibility of   engaging in” after the words “engage in” in the second line thereto, (f) inserting   the words “or to explore the possibility of purchasing or otherwise   obtaining” after the word “obtain” in the fourth line thereto and   (g) inserting the words “, and any publicly announced change or   amendment to such an announcement (including the announcement of an   abandonment of such intention)” at the end of clauses (i) and   (ii) thereof, .
    
	
 
    	
 
    
	
Consequences   of Merger Events:
    	
 
    
	
 
    	
 
    
	
(a) Share-for-Share:
    	
Modified   Calculation Agent Adjustment
    
	
 
    	
 
    
	
(b) Share-for-Other:
    	
Cancellation   and Payment (Calculation Agent Determination)
    
	
 
    	
 
    
	
(c) Share-for-Combined:
    	
Cancellation   and Payment (Calculation Agent Determination); provided   that Dealer may elect, in its commercially reasonable judgment, Component   Adjustment.
    
	
 
    	
 
    
	
Tender   Offer:
    	
Applicable;   provided, however, the reference to “10%” in the definition thereof shall be   replaced by a reference to “20%.”
    
	
 
    	
 
    
	
Consequences   of Tender Offers:
    	
 
    
	
 
    	
 
    
	
(a) Share-for-Share:
    	
Modified   Calculation Agent Adjustment
    
	
 
    	
 
    
	
(b) Share-for-Other:
    	
Modified   Calculation Agent Adjustment
    
	
 
    	
 
    
	
(c) Share-for-Combined:
    	
Modified   Calculation Agent Adjustment
    
	
 
    	
 
    
	
Composition   of Combined Consideration:
    	
Notwithstanding   anything to the contrary in the Equity Definitions, if the holder of Shares   would have more than one choice with respect to that portion of the   composition of Combined Consideration that is other than New Shares in   respect of any Share-for-Combined Merger Event or Tender Offer, Dealer shall   determine the composition of such Combined Consideration that is other than   New Shares in its sole discretion.
    
	
 
    	
 
    
	
Nationalization, Insolvency   or Delisting:
    	
Cancellation   and Payment (Calculation Agent Determination); provided that in addition to the provisions of   Section 12.6(a)(iii) of the Equity Definitions, it shall also   constitute a Delisting if the Exchange is located in the United States and   the Shares are not immediately re-listed, re-traded or re-quoted on any of   the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ   Global Market (or their respective successors); if the Shares are immediately   re-listed, re-traded or re-quoted on any such exchange or quotation system,   such exchange or quotation system shall thereafter be deemed to be the   Exchange.
    

 

7

 

	
Additional   Disruption Events:
    	
 
    
	
 
    	
 
    
	
Change   in Law:
    	
Applicable;   provided that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended   (i) by inserting the parenthetical “(including, for the avoidance of   doubt and without limitation, adoption, effectiveness or promulgation of   regulations authorized or mandated by existing statute)” at the end of   clause (A) thereof, (ii) by the replacement of the word   “Shares” with “Hedge Positions” in clause (X) thereof;   “(iii) by replacing the phrase “the interpretation” in the third line   thereof with the phrase “, or public announcement of, the formal or informal   interpretation”; provided further   that Section 12.9(b)(i) of the Equity Definitions is hereby amended   by (1) replacing “either party may elect” with “Dealer may elect” and   (2) replacing “notice to the other party” with “notice to Issuer” in the   first sentence of such section.
    
	
 
    	
 
    
	
 
    	
The   parties agree that, for the avoidance of doubt, for purposes of   Section 12.9(a)(ii) of the Equity Definitions, “any applicable law   or regulation” and for purposes of Section 5(b)(i) of the   Agreement, “any applicable law”, shall include the Dodd-Frank Wall Street   Reform and Consumer Protection Act of 2010, any rules and regulations   promulgated thereunder and any similar law or regulation (collectively, the “Wall Street Act”), and the consequences specified in   Section 12.9(b)(i) of the Equity Definitions shall apply to any   Change in Law or Illegality, as the case may be, arising from any such act,   rule or regulation. The foregoing constitutes a specific reservation for   purposes of the Wall Street Act.
    
	
 
    	
 
    
	
Insolvency   Filing:
    	
Applicable
    
	
 
    	
 
    
	
Loss   of Stock Borrow:
    	
Applicable;   provided that   Sections 12.9(a)(vii) and 12.9(b)(iv) of the Equity   Definitions are amended by deleting the words “at a rate equal to or less   than the Maximum Stock Loan Rate” and replacing it with the words “at a   Borrow Cost equal to or less than the Maximum Stock Loan Rate”.
    
	
 
    	
 
    
	
Borrow   Cost
    	
The   cost to borrow the relevant Shares that would be incurred by a third party   market participant borrowing such Shares, as determined by the Calculation   Agent on the relevant date of determination. Such costs shall include   (a)  the spread below FED-FUNDS that would be earned on collateral   posted in connection with such borrowed Shares, net of any costs or fees, and   (b) any stock loan borrow fee that would be payable for such Shares,   expressed as fixed rate per annum.
    
	
 
    	
 
    
	
Maximum   Stock Loan Rate:
    	
100   basis points per annum
    
	
 
    	
 
    
	
Increased   Cost of Stock Borrow:
    	
Applicable;   provided that   (a) Section 12.9(a)(viii) of the Equity Definitions shall be   amended by deleting “rate to borrow Shares” and replacing it with “Borrow   Cost” and (b) Section 12.9(b)(v) of the Equity Definitions   shall be amended by (i) adding the word “or” immediately before the   phrase “(B)”, (ii) deleting subsection (C) in its entirety,   (iii) replacing “either party” in the penultimate sentence with “the   Hedging Party”, and (iv) replacing the word “rate” in   clauses (X) and (Y) of the final sentence therein with the   words “Borrow Cost”.
    
	
 
    	
 
    
	
Initial   Stock Loan Rate:
    	
25   basis points per annum
    

 

8

 

	
FED   FUNDS:
    	
“FED FUNDS” means ,for any day, the rate set forth for such   day opposite the caption “Federal funds”, as such rate is displayed on the   page “FedsOpen <Index> <GO>“ on the BLOOMBERG Professional   Service, or any successor page; provided that   if no rate appears for any day on such page, the rate for the immediately   preceding day for which a rate does so appear shall be used for such day.
    
	
 
    	
 
    
	
Increased   Cost of Hedging:
    	
Applicable
    
	
 
    	
 
    
	
Hedging   Disruption:
    	
Applicable;   provided that:
    
	
 
    	
 
    
	
 
    	
(i)
    	
Section 12.9(a)(v) of   the Equity Definitions is hereby amended by (a) inserting the following   words at the end of clause (A) thereof: “in the manner contemplated   by the Hedging Party on the Trade Date” and (b) inserting the following   two phrases at the end of such Section:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“For   the avoidance of doubt, the term “equity price risk” shall be deemed to   include, but shall not be limited to, stock price and volatility risk. And,   for the further avoidance of doubt, any such transactions or assets referred   to in phrases (A) or (B) above must be available on commercially   reasonable pricing terms.”; and
    
	
 
    	
 
    	
 
    
	
 
    	
(ii)
    	
Section 12.9(b)(iii) of   the Equity Definitions is hereby amended by inserting in the third line   thereof, after the words “to terminate the Transaction”, the words “or a   portion of the Transaction affected by such Hedging Disruption”.
    
	
 
    	
 
    
	
Hedging   Party:
    	
Dealer   for all applicable Potential Adjustment Events and Extraordinary Events
    
	
 
    	
 
    	
 
    
	
Determining   Party:
    	
Dealer   for all applicable Extraordinary Events
    
	
 
    	
 
    
	
Acknowledgements:
    	
 
    
	
 
    	
 
    
	
Non-Reliance:
    	
Applicable
    
	
 
    	
 
    
	
Agreements   and Acknowledgements
    	
 
    
	
 
    	
 
    
	
Regarding   Hedging Activities:
    	
Applicable
    
	
 
    	
 
    
	
Additional   Acknowledgements:
    	
Applicable
    
	
 
    	
 
    
	
3.             Calculation Agent:
    	
Dealer, whose judgments, determinations and calculations shall be   made in good faith and in a commercially reasonable manner. Following any   determination or calculation by the Calculation Agent hereunder, upon a   request by Counterparty, the Calculation Agent shall promptly (but in any   event within three Scheduled Trading Days) provide to Counterparty by   e-mail to the e-mail address provided by Counterparty in such   request a report (in a commonly used file format for the storage and   manipulation of financial data) displaying in reasonable detail the basis for   such determination or calculation (including any assumptions used in making   such determination or calculation), it being understood that the Calculation   Agent shall not be obligated to disclose any proprietary models used by it   for such determination or calculation.
    
				

 

9

 

	
4.             Account Details:
    	
Dealer Payment Instructions:
    
	
 
    	
Royal Bank of Canada
    
	
 
    	
 
    
	
 
    	
ABA: 021000021
    
	
 
    	
JP Morgan Chase NY (CHASUS33)
    
	
 
    	
A/C Royal Bank of Canada, NY Branch (ROYCUS3X)
    
	
 
    	
A/C#: 920-1-033363
    
	
 
    	
FFC A/C Name: RBC US Transit
    
	
 
    	
Beneficiary A/C: 012692041499
    
	
 
    	
 
    
	
 
    	
Issuer   Payment Instructions:
    
	
 
    	
To be provided by Issuer
    
	
 
    	
 
    	
 
    
	
5.             Offices:
    	
The Office of Dealer for the Transaction is: New York
    
	
 
    	
 
    	
 
    
	
 
    	
Royal   Bank of Canada
    
	
 
    	
c/o   RBC Capital Markets, LLC
    
	
 
    	
3   World Financial Center
    
	
 
    	
200   Vesey Street
    
	
 
    	
New   York, NY 10281
    
	
 
    	
 
    
	
 
    	
The   Office of Issuer for the Transaction is: Not Applicable
    
	
 
    	
 
    	
 
    
	
6.             Notices:
    	
For purposes of this Confirmation:
    
	
 
    	
 
    	
 
    
	
 
    	
Address   for notices of communications to Issuer:
    
	
 
    	
 
    
	
 
    	
To:
    	
David   Grawemeyer
    
	
 
    	
 
    	
151   Detroit Street
    
	
 
    	
 
    	
Denver,   CO 80206
    
	
 
    	
 
    	
David.grawemeyer@janus.com
    
	
 
    	
 
    	
303-336-5053
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with   a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
John   Groneman
    
	
 
    	
 
    	
151   Detroit Street
    
	
 
    	
 
    	
Denver,   CO 80206
    
	
 
    	
 
    	
John.groneman@janus.com
    
	
 
    	
 
    	
303-336-7466
    
	
 
    	
 
    	
 
    
	
 
    	
Any   notice or other communication required or permitted to be given to Dealer   (for matters other than operational matters) with respect to this   Confirmation shall be delivered in person or given by facsimile transmission   to Dealer at the following address:
    
	
 
    	
 
    
	
 
    	
To:
    	
Royal   Bank of Canada
    
	
 
    	
 
    	
c/o   RBC Capital Markets, LLC
    
	
 
    	
 
    	
3   World Financial Center
    
	
 
    	
 
    	
200   Vesey Street
    
	
 
    	
 
    	
New   York, NY 10281
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attn:
    	
Structured   Derivatives Documentation
    
	
 
    	
 
    	
Telephone:
    	
(212)   858-7000
    
	
 
    	
 
    	
Facsimile:
    	
(212)   428-3053
    
	
 
    	
 
    	
Email:
    	
SEDDOC@rbccm.com
    
					

 

10

 

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

 

7.             Representations, Warranties and Agreements:

 

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

 

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

 

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

 

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

 

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

 

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

 

(vi)          On each of the Trade Date and the Premium Payment Date, Issuer is not, or will not be, “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Issuer would be able to purchase 10,734,357 Shares in compliance with the corporate laws of the jurisdiction of its incorporation.

 

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

 

(viii)        The representations and warranties of Issuer set forth in Article III of an Exchange Agreement dated as of June 14, 2013, between the Issuer and a holder of the Issuer’s 3.25% Convertible Senior Notes due 2014 (the “Exchange Agreement”)  are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein.

 

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

 

(x)           During the period starting on the first Expiration Date and ending on the last Expiration Date (the “Settlement Period”), the Shares or securities that are convertible into, or exchangeable or exercisable for, Shares will not be subject to a “restricted period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”).

 

11

 

(xi)                              On each day during the Settlement Period, neither Issuer nor any “affiliate” or “affiliated purchaser” (each as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable or exercisable for Shares.

 

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

 

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

 

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

 

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

 

(d)                                 Issuer agrees and acknowledges that Dealer is a “financial institution,” “swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code.  The parties hereto further agree and acknowledge that it is the intent of the parties that (A) this Confirmation is (i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment,” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code and a “payment or other transfer of property” within the meaning of Sections 362 and 546 of the Bankruptcy Code, and (B) Dealer is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e), 546(g), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

 

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

 

(f)                                   Issuer shall deliver to Dealer an opinion of counsel reasonably acceptable to Dealer, dated as of the Trade Date and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in Section 3(a) of the Agreement and clause (a)(xi) above and such other matters as Dealer may reasonably request.

 

12

 

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

 

8.                                      Miscellaneous:

 

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

 

	
Share   Termination Alternative:
    	
Applicable   and means that Issuer shall deliver to Dealer the Share Termination Delivery   Property on the date on which the Payment Obligation would otherwise be due   pursuant to Section 12.7 or 12.9 of the Equity Definitions or   Section 6(d)(ii) of the Agreement, as applicable (the “Share Termination Payment Date”), in satisfaction of the   Payment Obligation.
    
	
 
    	
 
    
	
Share   Termination Delivery
    	
 
    
	
Property:
    	
A   number of Share Termination Delivery Units, as calculated by the Calculation   Agent, equal to the Payment Obligation divided by the Share Termination Unit   Price. The Calculation Agent shall adjust the Share Termination Delivery   Property by replacing any fractional portion of the aggregate amount of a   security therein with an amount of cash equal to the value of such fractional   security based on the values used to calculate the Share Termination Unit   Price.
    
	
 
    	
 
    
	
Share   Termination Unit Price:
    	
The   value of property contained in one Share Termination Delivery Unit on the   date such Share Termination Delivery Units are to be delivered as Share   Termination Delivery Property, as determined by the Calculation Agent in its   discretion by commercially reasonable means and notified by the Calculation   Agent to Issuer at the time of notification of the Payment Obligation.
    
	
 
    	
 
    
	
Share   Termination Delivery Unit:
    	
In   the case of a Termination Event, Event of Default, Delisting or Additional   Disruption Event, one Share or, in the case of an Insolvency,   Nationalization, Merger Event or Tender Offer, one Share or a unit consisting   of the number or amount of each type of property received by a holder of one   Share (without consideration of any requirement to pay cash or other   consideration in lieu of fractional amounts of any securities) in such   Insolvency, Nationalization, Merger Event or Tender Offer, as applicable. If   such Insolvency, Nationalization, Merger Event or Tender Offer involves a   choice of consideration to be received by holders, such holder shall be   deemed to have elected to receive the maximum possible amount of cash.
    
	
 
    	
 
    
	
Failure   to Deliver:
    	
Applicable
    

 

13

 

	
Other   applicable provisions:
    	
If   Share Termination Alternative is applicable, the provisions of   Sections 9.8, 9.9, 9.10, 9.11 (except that the Representation and Agreement   contained in Section 9.11 of the Equity Definitions shall be modified by   excluding any representations therein relating to restrictions, obligations,   limitations or requirements under applicable securities laws arising as a   result of the fact that Seller is the issuer of the Shares or any portion of   the Share Termination Delivery Units) and 9.12 of the Equity Definitions will   be applicable as if “Physical Settlement” applied to the Transaction, except   that all references to “Shares” shall be read as references to “Share   Termination Delivery Units”.
    

 

(b)                                 Payment by Dealer.  In the event that, following payment of the Premium, (i) an Early Termination Date occurs or is designated with respect to the Transaction as a result of a Termination Event or an Event of Default (other than an Event of Default of the type described in Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Issuer an amount pursuant to Section 6 of the Agreement, or (ii) Dealer owes to Issuer an amount pursuant to Article 12 of the Equity Definitions (including, for the avoidance of doubt, any amount payable in connection with an Extraordinary Event), such amount shall be deemed to be zero.

 

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

 

(i)                                     Dealer reasonably determines, upon advice of counsel, that it is necessary to terminate a portion of the Transaction so that Dealer’s related hedging activities will comply with applicable securities laws, rules or regulations;

 

(ii)                                  a “person” or “group” within the meaning of Section 13(d) of the Exchange Act, other than Issuer, its subsidiaries and its and their employee benefit plans, has become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of the Issuer’s common equity representing more than 50% of the voting power of Issuer’s common equity;

 

(iii)                               the consummation of (A) any recapitalization, reclassification or change of Shares (other than changes resulting from a subdivision or combination) as a result of which Shares would be converted into, or exchanged for, stock, other securities, other property or assets or (B) any share exchange, consolidation or merger of Issuer pursuant to which Shares will be converted into cash, securities or other property or any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of Issuer and its subsidiaries, taken as a whole, to any person other than one of Issuer’s subsidiaries, unless holders of all classes of Issuer’s common equity immediately prior to such transaction that is a share exchange, consolidation or merger own, directly or indirectly, more than 50% of all classes of common equity of the continuing or surviving corporation or transferee or the parent thereof immediately after such event;

 

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

 

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

 

Notwithstanding the foregoing, a transaction set forth in clause (ii) or (iii) above will not constitute an Additional Termination Event if (a) at least 90% of the consideration received or to be received by Issuer’s common stockholders, excluding cash payments for fractional shares, in connection with such transaction or transactions otherwise constituting an Additional Termination Event consists of shares of common stock that are listed or quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market, The NASDAQ Global Market or

 

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The NASDAQ Capital Market (or any of their respective successors) and (b) as a result of the completion of such transaction or transactions, the “Shares” are composed of such consideration.

 

(d)                                 Registration/Private Placement Procedures.  (i)  If, in the reasonable judgment of Dealer, for any reason, any Shares or any securities of Issuer or its affiliates comprising any Share Termination Delivery Units deliverable to Dealer hereunder (any such Shares or securities, “Delivered Securities”) would not be immediately freely transferable by Dealer under Rule 144 under the Securities Act, then the provisions set forth in this Section 8(d) shall apply.  At the election of Issuer by notice to Dealer within one Exchange Business Day after the relevant delivery obligation arises, but in any event at least one Exchange Business Day prior to the date on which such delivery obligation is due, either (A) all Delivered Securities delivered by Issuer to Dealer shall be, at the time of such delivery, covered by an effective registration statement of Issuer for immediate resale by Dealer (such registration statement and the corresponding prospectus (the “Prospectus”) (including, without limitation, any sections describing the plan of distribution) in form and content commercially reasonably satisfactory to Dealer) or (B) Issuer shall deliver additional Delivered Securities so that the value of such Delivered Securities, as determined by the Calculation Agent to reflect an appropriate liquidity discount, equals the value of the number of Delivered Securities that would otherwise be deliverable if such Delivered Securities were freely tradeable (without prospectus delivery) upon receipt by Dealer (such value, the “Freely Tradeable Value”); provided that Issuer may not make the election described in this clause (B) if, on the date of its election, it has taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the delivery by Issuer to Dealer (or any Affiliate of Dealer designated by Dealer) of the Delivered Securities or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Delivered Securities by Dealer (or any such Affiliate of Dealer).  (For the avoidance of doubt, as used in this Section 8(d) only, the term “Issuer” shall mean the issuer of the relevant securities, as the context shall require.)

 

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

 

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

 

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

 

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

 

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

 

(B)                               Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into an agreement (a “Private Placement Agreement”) on commercially reasonable terms in connection with the private placement of such Delivered Securities by Issuer to Dealer or such Affiliate and the private resale of such shares by Dealer or such Affiliate, substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance reasonably satisfactory to Dealer and Issuer, which Private Placement Agreement shall include, without limitation, provisions

 

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substantially similar to those contained in such private placement purchase agreements relating to the indemnification of, and contribution in connection with the liability of, Dealer and its Affiliates and Issuer, shall provide for the payment by Issuer of all expenses in connection with such resale, including all fees and expenses of counsel for Dealer, shall contain representations, warranties and agreements of Issuer reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales, and shall use best efforts to provide for the delivery of accountants’ “comfort letters” to Dealer or such Affiliate with respect to the financial statements and certain financial information contained in or incorporated by reference into the offering memorandum prepared for the resale of such Shares; and

 

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

 

(D)                               Issuer shall not take, or cause to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Issuer to Dealer (or any Affiliate designated by Dealer) of the Shares or Share Termination Delivery Units, as the case may be, or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Shares or Share Termination Delivery Units, as the case may be, by Dealer (or any such Affiliate of Dealer).

 

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

 

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

 

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

 

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

 

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more of:’ and, the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by (x) replacing the words “a diluting or concentrative” with “an” in the fifth line thereof, (y) deleting the words “diluting or concentrative effect” in the sixth to last line thereof and (z) replacing the phrase “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)” with the phrase “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)”.

 

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

 

(iv)                              Section 12.1(f) of the Equity Definitions is hereby amended by the deletion of the parenthetical in clause (i) thereof.

 

(v)                                 For greater certainty, the definition of “Modified Calculation Agent Adjustment” in Sections 12.2 and 12.3 of the Equity Definitions shall be amended by adding the following italicized language after the stipulated parenthetical provision:  “(including adjustments to account for changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares or to this Transaction) from the Exchange Business Day immediately preceding the Announcement Date or the Determination Date, as applicable,  to the first Exchange Business Day immediately following the Merger Date (Section 12.2) or Tender Offer Date (Section 12.3).”

 

(vi)                              Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); (B) replacing “will lend” with “lends” in subsection (B); and (C) replacing the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares” with the phrase “such Lending Party does not lend Shares” in the penultimate sentence.

 

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

 

(f)                                   Repurchase Notices.  Issuer shall, on any day on which Issuer effects any repurchase of Shares, provide Dealer with a written notice of such repurchase (a “Repurchase Notice”) on such day if, following such repurchase, the Warrant Equity Percentage (as defined below) is greater by 0.5% or more than the Warrant Equity Percentage set forth in the immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater by 0.5% or more than the Warrant Equity Percentage as of the date hereof).  The “Warrant Equity Percentage” as of any day is the fraction, expressed as a percentage, of the numerator of which is the Number of Warrants and the denominator of which is the number of Shares outstanding on such day.  Issuer agrees to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party may become subject under applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure.  If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Issuer shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Issuer will reimburse any Indemnified Party for all expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Issuer) in connection with the investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Issuer.  This indemnity shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Dealer.

 

(g)                                  Transfer or Assignment.  Dealer may transfer or assign its rights and obligations hereunder and under the Agreement, in whole or in part, at any time to any person or entity whatsoever without the consent of Issuer.  At any time at

 

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which any Ownership Limitation or a Hedging Disruption exists, if Dealer, in its discretion, is unable to effect a transfer or assignment to a third party after using its commercially reasonable efforts on pricing terms and within a time period reasonably acceptable to Dealer such that an Ownership Limitation or a Hedging Disruption, as the case may be, no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that such Ownership Limitation or a Hedging Disruption, as the case may be, no longer exists.  In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement or Section 8(a) of this Confirmation as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Issuer shall be the sole Affected Party with respect to such partial termination and (iii) such portion of the Transaction shall be the only Terminated Transaction.

 

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

 

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

 

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of the foregoing events (including the number of Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be delivered) and promptly deliver such Shares thereafter.  Issuer shall not, until Issuer’s obligations under the Transaction have been satisfied in full, use any Shares that become available for potential delivery to Dealer as a result of any of the foregoing events for the settlement or satisfaction of any transaction or obligation other than the Transaction or reserve any such Shares for future issuance for any purpose other than to satisfy Issuer’s obligations to Dealer under the Transaction.

 

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

 

(j)                                    Right to Extend.  Dealer may postpone any Exercise Date or Settlement Date or any other date of valuation or delivery with respect to some or all of the relevant Warrants (in which event the Calculation Agent shall make appropriate adjustments to the Number of Shares to be Delivered with respect to one or more Components), if Dealer determines, in its good faith and reasonable discretion, upon advice of counsel in the case of the immediately following clause (ii), that such extension is reasonably necessary or appropriate to (i) preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions in the cash market, the stock loan market or any other relevant market or (ii) to enable Dealer to effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would, if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Dealer.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(r)                                    Agreements and Acknowledgments Regarding Hedging.  Issuer understands, acknowledges and agrees that:  (A) at any time on and prior to the final Expiration Date, Dealer and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Transaction; (B) Dealer and its affiliates also may be active in the market for Shares other than in connection with hedging activities in relation to the Transaction; (C) Dealer shall make its own determination as to whether,

 

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when or in what manner any hedging or market activities in securities of Issuer shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the VWAP Price; and (D) any market activities of Dealer and its affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the VWAP Price, each in a manner that may be adverse to Issuer.

 

(s)                                   Early Unwind.  In the event the exchange by Issuer of the Existing Notes for the New Notes (each as defined in the Exchange Agreement) is not consummated with each Holder (as defined in each Exchange Agreement) pursuant to the Exchange Agreement for any reason by the close of business in New York on June 19, 2013 (or such later date as agreed upon by the parties) (June 19, 2013 or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (x) the Transaction and all of the respective rights and obligations of Dealer and Issuer thereunder shall be cancelled and terminated and (y) Issuer shall assume, or reimburse the cost of, derivatives and other hedging activities entered into by Dealer or one or more of its affiliates in connection with hedging the Transaction and the unwind of such hedging activities.  Following such termination, cancellation and payment, subject to the preceding sentence, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of either party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date.

 

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

 

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

 

[Remainder of Page Intentionally Blank]

 

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

 

Issuer hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning to Dealer a facsimile of the fully-executed Confirmation to Dealer at (212) 428-3053.  Originals shall be provided for your execution upon your request.

 

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

 

Very truly yours,

 

ROYAL BANK OF CANADA
 by its agent

 

RBC Capital Markets, LLC

 

	
By:
    	
/s/   Alex Rabaev
    	
 
    
	
 
    	
Name:   
    	
Alex   Rabaev
    	
 
    
	
 
    	
Title:   
    	
Associate   Director
    	
 
    
	
 
    	
 
    
	
Issuer hereby agrees to, accepts and confirms the   terms of the foregoing as of the Trade Date.
    
	
 
    
	
JANUS CAPITAL GROUP INC.
    
	
 
    	
 
    
	
By:
    	
/s/   Bruce Koepfgen
    	
 
    
	
 
    	
Name:   
    	
Bruce   Koepfgen
    	
 
    
	
 
    	
Title:   
    	
Executive   Vice President and Chief Financial Officer
    	
 
    
						

 

21

 

ANNEX A

 

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

 

	
Component Number
    	
 
    	
Number of Warrants
    	
 
    	
Expiration Date
    	
 
    
	
1
    	
 
    	
268,359
    	
 
    	
October 15, 2018
    	
 
    
	
2
    	
 
    	
268,359
    	
 
    	
October 16, 2018
    	
 
    
	
3
    	
 
    	
268,359
    	
 
    	
October 17, 2018
    	
 
    
	
4
    	
 
    	
268,359
    	
 
    	
October 18, 2018
    	
 
    
	
5
    	
 
    	
268,359
    	
 
    	
October 19, 2018
    	
 
    
	
6
    	
 
    	
268,359
    	
 
    	
October 22, 2018
    	
 
    
	
7
    	
 
    	
268,359
    	
 
    	
October 23, 2018
    	
 
    
	
8
    	
 
    	
268,359
    	
 
    	
October 24, 2018
    	
 
    
	
9
    	
 
    	
268,359
    	
 
    	
October 25, 2018
    	
 
    
	
10
    	
 
    	
268,359
    	
 
    	
October 26, 2018
    	
 
    
	
11
    	
 
    	
268,359
    	
 
    	
October 29, 2018
    	
 
    
	
12
    	
 
    	
268,359
    	
 
    	
October 30, 2018
    	
 
    
	
13
    	
 
    	
268,359
    	
 
    	
October 31, 2018
    	
 
    
	
14
    	
 
    	
268,359
    	
 
    	
November 1, 2018
    	
 
    
	
15
    	
 
    	
268,359
    	
 
    	
November 2, 2018
    	
 
    
	
16
    	
 
    	
268,359
    	
 
    	
November 5, 2018
    	
 
    
	
17
    	
 
    	
268,359
    	
 
    	
November 6, 2018
    	
 
    
	
18
    	
 
    	
268,359
    	
 
    	
November 7, 2018
    	
 
    
	
19
    	
 
    	
268,359
    	
 
    	
November 8, 2018
    	
 
    
	
20
    	
 
    	
268,359
    	
 
    	
November 9, 2018
    	
 
    
	
21
    	
 
    	
268,359
    	
 
    	
November 12, 2018
    	
 
    
	
22
    	
 
    	
268,359
    	
 
    	
November 13, 2018
    	
 
    
	
23
    	
 
    	
268,359
    	
 
    	
November 14, 2018
    	
 
    
	
24
    	
 
    	
268,359
    	
 
    	
November 15, 2018
    	
 
    
	
25
    	
 
    	
268,359
    	
 
    	
November 16, 2018
    	
 
    
	
26
    	
 
    	
268,359
    	
 
    	
November 19, 2018
    	
 
    
	
27
    	
 
    	
268,359
    	
 
    	
November 20, 2018
    	
 
    
	
28
    	
 
    	
268,359
    	
 
    	
November 21, 2018
    	
 
    
	
29
    	
 
    	
268,359
    	
 
    	
November 23, 2018
    	
 
    
	
30
    	
 
    	
268,359
    	
 
    	
November 26, 2018
    	
 
    
	
31
    	
 
    	
268,359
    	
 
    	
November 27, 2018
    	
 
    
	
32
    	
 
    	
268,359
    	
 
    	
November 28, 2018
    	
 
    
	
33
    	
 
    	
268,359
    	
 
    	
November 29, 2018
    	
 
    
	
34
    	
 
    	
268,359
    	
 
    	
November 30, 2018
    	
 
    
	
35
    	
 
    	
268,359
    	
 
    	
December 3, 2018
    	
 
    
	
36
    	
 
    	
268,359
    	
 
    	
December 4, 2018
    	
 
    
	
37
    	
 
    	
268,359
    	
 
    	
December 5, 2018
    	
 
    
	
38
    	
 
    	
268,359
    	
 
    	
December 6, 2018
    	
 
    
	
39
    	
 
    	
268,359
    	
 
    	
December 7, 2018
    	
 
    
	
40
    	
 
    	
268,356
    	
 
    	
December 10, 2018
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
10,734,357
    	
 
    	
 
    	
 
    

 

A-1

 

SCHEDULE A

 

 

SCHEDULE B

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]