Document:

irwd_Ex10_4

		

			Exhibit 10.4

		

		
			IRONWOOD PHARMACEUTICALS, INC.
		

		
			AMENDED AND RESTATED 2010 EMPLOYEE STOCK PURCHASE PLAN (As AMENDED AND RESTATED AS OF January 1, 2020)
		

		
			The following constitute the provisions of the Amended and Restated 2010 Employee Stock Purchase Plan (the “Plan”) of Ironwood Pharmaceuticals, Inc. (the “Company”), as further amended and restated effective as of January 1, 2020 (the “Restatement Date”).
		

			
	
			
				 1.
			Purpose.  The purpose of the Plan is to provide Employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company.  It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code and to be exempt from the application and requirements of Section 409A of the Code, and the provisions of the Plan are to be construed accordingly. 

			
	
			
				 2.
			Definitions.  

			
	
			
				 (a)
			“Board” shall mean the Board of Directors of the Company, or a committee of the Board of Directors named by the Board to administer the Plan.  References to the “Board” shall also include any persons to whom the Board of Directors or such committee has delegated authority to make ministerial decisions regarding the Plan.

			
	
			
				 (b)
			“Code” shall mean the Internal Revenue Code of 1986, as amended.

			
	
			
				 (c)
			“Common Stock” shall mean the Class A Common Stock, $0.001 par value per share, of the Company.

			
	
			
				 (d)
			“Company” shall mean Ironwood Pharmaceuticals, Inc., a Delaware corporation.

			
	
			
				 (e)
			“Compensation” shall mean total cash compensation received by the Employee from the Company or a Designated Subsidiary that is taxable income for federal income tax purposes, including, payments for overtime, shift premium, incentive compensation, incentive payments, bonuses, commissions and other compensation received from the Company or a Designated Subsidiary, but excluding relocation, expense reimbursements, tuition or other reimbursements and income realized as a result of participation in any stock option, stock purchase or similar plan of the Company or a Designated Subsidiary.  

			
	
			
				 (f)
			“Continuous Status as an Employee” shall mean the absence of any interruption or termination of service as an Employee.  Continuous Status as an Employee shall not be considered interrupted in the case of a leave of absence agreed to in writing by the Company, provided that such leave is for a period of not more than three (3) months or reemployment upon the expiration of such leave is guaranteed by contract or statute.

			
	
			
				 (g)
			“Contributions” shall mean all amounts credited to the account of a participant pursuant to the Plan.

		
			

		 

		

			
	
			
				 (h)
			“Designated Subsidiaries” shall mean the Subsidiaries which have been designated by the Board from time to time in its sole discretion as eligible to participate in the Plan.

			
	
			
				 (i)
			“Employee” shall mean any person who is employed by the Company or one of its Designated Subsidiaries for tax purposes and who is customarily employed for at least 20 hours per week and more than five months in a calendar year by the Company or one of its Designated Subsidiaries.

			
	
			
				 (j)
			“Enrollment Form” shall mean the form(s) prescribed by the Company from time to time, whether in paper, online or such other electronic or other format as may be determined from time to time, for participation in the Plan, as described in paragraph 5.

			
	
			
				 (k)
			“Exercise Date” shall mean the last business day of each Offering Period of the Plan.

			
	
			
				 (l)
			“Exercise Price” shall mean with respect to an Offering Period, an amount equal to 85% of the fair market value (as defined in paragraph 7(b)) of a share of Common Stock on the Offering Date or on the Exercise Date, whichever is lower.

			
	
			
				 (m)
			“Offering Date” shall mean the first business day of each Offering Period of the Plan.

			
	
			
				 (n)
			“Offering Period” shall mean a period of six months as set forth in paragraph 4 of the Plan.

			
	
			
				 (o)
			“Plan” shall mean this Ironwood Pharmaceuticals, Inc. Amended and Restated 2010 Employee Stock Purchase Plan, as it may be amended from time to time.

			
	
			
				 (p)
			“Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.

			
	
			
				 3.
			Eligibility.

			
	
			
				 (a)
			Any person who is employed as an Employee as of the Offering Date of a given Offering Period shall be eligible to participate in such Offering Period under the Plan and subsequent Offering Periods, subject to the requirements of paragraph 5(a) and the limitations imposed by Section 423(b) of the Code.  All Employees granted options under the Plan with respect to any Offering Period will have the same rights and privileges.

			
	
			
				 (b)
			Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Subsidiary, (ii) which permits his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the 

		 

		

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	Company and its Subsidiaries to accrue at a rate which exceeds $25,000 of fair market value (or such other amount as may be set forth in Section 423(b)(8) of the Code, as the same may be amended from time to time) of such stock as defined in paragraph 7(b) (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time, or (iii) to purchase more than 2,500 shares (subject to any adjustment pursuant to paragraph 18) of Common Stock in any one Offering Period.  Any option granted under the Plan shall be deemed to be modified to the extent necessary to satisfy this paragraph 3(b). Notwithstanding the foregoing, for Offering Periods commencing on and after the Restatement Date, the maximum share limitation described in subsection (b)(iii) shall be equal to $25,000 divided by the fair market value (as defined in paragraph 7(b)) of a share of Common Stock on the Offering Date of such Offering Period.

			
	
			
				 4.
			Offering Periods.  The Plan shall be implemented by a series of Offering Periods, with a new Offering Period commencing on January 1 and July 1 of each year or the first business day thereafter (or at such other time or times as may be determined by the Board).  The initial Offering Period shall commence July 1, 2010, or on such later date as determined by the Board.

			
	
			
				 5.
			Participation.  

			
	
			
				 (a)
			An eligible Employee may become a participant in the Plan by completing an Enrollment Form provided by the Company and filing it with the Company or its designee prior to the applicable Offering Date, unless a later time for filing the Enrollment Form is set by the Board for all eligible Employees with respect to a given Offering Period.  The Enrollment Form and its submission may be electronic as directed by the Company.  The Enrollment Form shall set forth the percentage of the participant’s Compensation (which shall be expressed as a whole percentage and shall be not less than 1% and, effective as of the Restatement Date, not more than 20%) to be paid as Contributions pursuant to the Plan.  A participant’s Enrollment Form shall continue to be given effect for subsequent Offering Periods under the Plan, subject to the limitations prescribed in the Plan and under applicable law, unless the participant files a new Enrollment Form prior to the first day of a subsequent Offering Period (or such other period set by the Board) or withdraws from the Plan pursuant to paragraph 10.

			
	
			
				 (b)
			Payroll deductions shall commence with the first payroll following the Offering Date, unless a later time is set by the Board with respect to a given Offering Period consistent with the requirements of Section 423 of the Code, and shall end on the last payroll paid on or prior to the Exercise Date of the Offering Period to which the Enrollment Form is applicable, unless sooner terminated as provided in paragraph 10.

			
	
			
				 6.
			Method of Payment of Contributions.

			
	
			
				 (a)
			Each participant shall elect to have payroll deductions made on each payroll during the Offering Period in an amount, expressed as a whole percentage, not less than 1% and, effective as of the Restatement Date, not more than 20% of such participant’s Compensation on each such payroll; provided that the aggregate of such payroll deductions during an Offering Period commencing on or after the Restatement Date shall not exceed 20% of the participant’s aggregate Compensation during said Offering Period (or such other percentage 

		 

		

			-3-

		

		

			 

		

	as the Board may establish from time to time before an Offering Date).  All payroll deductions made by a participant shall be credited to his or her account under the Plan.  A participant may not make any additional payments into such account.

			
	
			
				 (b)
			A participant may discontinue his or her participation in the Plan as provided in paragraph 10, or, on one occasion only during the Offering Period, may decrease, but may not increase, the rate of his or her Contributions during the Offering Period by completing and filing with the Company a new Enrollment Form authorizing a change in the deduction rate.  The change in rate shall be effective as of the beginning of the next payroll period following the date of filing of the new Enrollment Form, if the Enrollment Form is completed at least ten business days prior to such date (or such other period prescribed by the Company), and, if not, as of the beginning of the next succeeding payroll period.

			
	
			
				 (c)
			Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and paragraph 3(b), a participant’s payroll deductions may be decreased to 0% at such time during any Offering Period which is scheduled to end during the then-current calendar year if the aggregate amount of all payroll deductions accumulated with respect to such Offering Period and any other Offering Period ending within the same calendar year equals $21,250.  Payroll deductions shall recommence at the rate provided in such participant’s Enrollment Form at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in paragraph 10.

			
	
			
				 7.
			Grant of Option.

			
	
			
				 (a)
			On the Offering Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on the Exercise Date of such Offering Period a number of shares of the Common Stock determined by dividing such Employee’s Contributions accumulated on or prior to such Exercise Date and retained in the participant’s account as of the Exercise Date by the applicable Exercise Price; provided however, that such purchase shall be subject to the limitations set forth in paragraphs 3(b) and 12.  The fair market value of a share of the Common Stock shall be determined as provided in paragraph 7(b).

			
	
			
				 (b)
			The fair market value of the Common Stock on a given date shall be determined by the Board based on (i) if the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or last sale price of the Common Stock for such date (or, in the event that the Common Stock is not traded on such date, on the immediately preceding trading date), on the composite tape or other comparable reporting system or (ii) if the Common Stock is not listed on a national securities exchange and such price is not regularly reported, the mean between the bid and asked prices per share of the Common Stock at the close of trading in the over-the-counter market.

			
	
			
				 8.
			Exercise of Option.  Unless a participant withdraws from the Plan as provided in paragraph 10, his or her option for the purchase of shares will be exercised automatically on the Exercise Date of the Offering Period, and the maximum number of full shares subject to the option will be purchased for him or her at the applicable Exercise Price with the accumulated 

		 

		

			-4-

		

		

			 

		

	Contributions in his or her account.  If a fractional number of shares results, then such number shall be rounded down to the next whole number and any unapplied cash shall be retained in the participant’s account for the subsequent Offering Period.  Any other amounts left over in a participant’s account after an Exercise Date shall be returned to the participant.  The shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the participant on the Exercise Date and, for Exercise Dates occurring after the Restatement Date, such shares shall be immediately available for subsequent sale by a participant, subject to the terms and conditions of the Plan, following the completion of such administrative holding period, if any, as is determined by the Company to be necessary to the efficient administration of the Plan, provided that such period shall not exceed ten (10) business days following the relevant Exercise Date.  During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her.

			
	
			
				 9.
			Delivery.  Upon the written request of a participant, certificates representing the shares purchased upon exercise of an option will be issued as promptly as practicable after the Exercise Date of each Offering Period to participants who wish to hold their shares in certificate form.  

			
	
			
				 10.
			Withdrawal; Termination of Employment.

			
	
			
				 (a)
			A participant may withdraw all but not less than all of the Contributions credited to his or her account under the Plan at any time prior to the Exercise Date of the Offering Period by giving written notice to the Company or its designee in the time period specified by the Company.  All of the participant’s Contributions credited to his or her account will be paid to him or her promptly after receipt of his or her notice of withdrawal and his or her option for the current Offering Period will be automatically terminated, and no further Contributions for the purchase of shares will be made during the Offering Period.

			
	
			
				 (b)
			Upon termination of the participant’s Continuous Status as an Employee prior to the Exercise Date of the Offering Period for any reason, including retirement or death, the Contributions credited to his or her account will be returned to him or her or, in the case of his or her death, to the person or persons entitled thereto under paragraph 14, and his or her option will be automatically terminated.

			
	
			
				 (c)
			In the event an Employee fails to remain in Continuous Status as an Employee for at least 20 hours per week during the Offering Period in which the Employee is a participant, he or she will be deemed to have elected to withdraw from the Plan and the Contributions credited to his or her account will be returned to him or her and his or her option for that Offering Period will be automatically terminated.

			
	
			
				 (d)
			A participant’s withdrawal from an Offering Period will not have any effect upon his or her eligibility to participate in a succeeding Offering Period or in any similar plan which may hereafter be adopted by the Company, to the extent the participant is otherwise eligible under the terms of the applicable plan.

			
	
			
				 11.
			Interest.  No interest shall accrue on the Contributions of a participant in the Plan.

		
			

		 

		

			-5-

		

		

			 

		

		

			
	
			
				 12.
			Stock.

			
	
			
				 (a)
			The maximum number of shares of Common Stock which shall be made available for sale under the Plan shall be 400,000 shares, plus an annual increase on the first day of each of the Company’s fiscal years beginning in 2011, equal to the lesser of (i) 1,000,000 shares, (ii) 1% of the shares of Common Stock outstanding on the last day of the immediately preceding fiscal year, or (iii) such lesser number of shares as is determined by the Board, subject to adjustment upon changes in capitalization of the Company as provided in paragraph 18.  The increase in the number of shares of Common Stock available for sale under this Plan set forth in this paragraph 12(a) shall be subject to the approval of the Board and shall be effective upon the first day of each fiscal year; provided, however, that in the event the Board has not approved an increase on or before the first day of the applicable fiscal year, the number of shares of Common Stock available for sale under this Plan shall remain the same until such time that the Board approves an increase pursuant to this paragraph 12(a).  

		
			If the total number of shares which would otherwise be subject to options granted pursuant to paragraph 7(a) on the Offering Date of an Offering Period exceeds the number of shares then available under the Plan (after deduction of all shares for which options have been exercised), the Company shall make a pro rata allocation of the shares remaining available for option grants in as uniform a manner as shall be practicable and as it shall determine to be equitable.  In such event, the Company shall notify each participant of such reduction and of the effect on the participant’s option and the Company may reduce the rate of Contributions, if necessary. Any amounts remaining in a participant’s account not applied to the purchase of shares pursuant to this paragraph 12 shall be refunded on or promptly after the Exercise Date.  
		

			
	
			
				 (b)
			The participant will have no interest or voting right in shares covered by his or her option until such option has been exercised.

			
	
			
				 13.
			Administration.  The Board or its delegated committee or any person to whom the authority to make ministerial decisions regarding the Plan has been delegated by the Board or such committee, in each case, to the extent of such delegation, shall supervise and administer the Plan and shall have full power to adopt, amend and rescind any rules deemed desirable and appropriate for the administration of the Plan and not inconsistent with the Plan, to construe and interpret the Plan, and to make all other determinations necessary or advisable for the administration of the Plan.

			
	
			
				 14.
			Designation of Beneficiary.

			
	
			
				 (a)
			A participant may designate a beneficiary who is to receive any shares and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to the end of the Offering Period but prior to delivery to him or her of such shares and cash.  In addition, a participant may designate a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to the Exercise Date of the Offering Period.  If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.  Beneficiary designations shall be made either in writing or by electronic delivery as directed by the Company.

		
			

		 

		

			-6-

		

		

			 

		

		

			
	
			
				 (b)
			Such designation of a beneficiary may be changed by the participant at any time by submission of the required notice, which may be electronic.  In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

			
	
			
				 15.
			Transferability.  Neither Contributions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in paragraph 14) by the participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with paragraph 10.

			
	
			
				 16.
			Use of Funds.  All Contributions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such Contributions.

			
	
			
				 17.
			Reports.  Individual accounts will be maintained for each participant in the Plan.  Statements of account will be given or made available to participating Employees promptly following each Exercise Date, which statements will set forth the amounts of Contributions, the per share purchase price, the number of shares purchased and the remaining cash balance, if any.

			
	
			
				 18.
			Adjustments Upon Changes in Capitalization.  Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by unexercised options under the Plan, the number of shares of Common Stock which have been authorized for issuance under the Plan but are not yet subject to options set forth in paragraph 12(a) and the number of shares of Common Stock set forth in paragraph 12(a)(i) (collectively, the “Reserves”), the maximum number of shares of Common Stock that may be purchased by a participant in an Offering Period set forth in paragraph 3(b), as well as the price per share of Common Stock covered by each unexercised option under the Plan, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock.  Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.

		
			In the event of the proposed dissolution or liquidation of the Company, an Offering Period then in progress will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board.  In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger, consolidation or other capital reorganization of the Company with or into another corporation, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless the Board determines, 

		 

		

			-7-

		

		

			 

		

in the exercise of its sole discretion and in lieu of such assumption or substitution, to shorten the Offering Period then in progress by setting a new Exercise Date (the “New Exercise Date”).  If the Board shortens the Offering Period then in progress in lieu of assumption or substitution in the event of a merger or sale of assets, the Board shall notify each participant in writing, at least ten days prior to the New Exercise Date, that the Exercise Date for his or her option has been changed to the New Exercise Date and that his or her option will be exercised automatically on the New Exercise Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in paragraph 10.  For purposes of this paragraph, an option granted under the Plan shall be deemed to be assumed if, following the sale of assets, merger or other reorganization, the option confers the right to purchase, for each share of Common Stock subject to the option immediately prior to the sale of assets, merger or other reorganization, the consideration (whether stock, cash or other securities or property) received in the sale of assets, merger or other reorganization by holders of Common Stock for each share of Common Stock held on the effective date of such transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if such consideration received in such transaction was not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in fair market value to the per share consideration received by holders of Common Stock in the sale of assets, merger or other reorganization.
		

		
			The Board may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares of its outstanding Common Stock, and in the event of the Company being consolidated with or merged into any other corporation.
		

			
	
			
				 19.
			Amendment or Termination.

			
	
			
				 (a)
			The Board may at any time terminate or amend the Plan.  Except as provided in paragraph 18, no such termination may affect options previously granted, nor may an amendment make any change in any option theretofore granted which adversely affects the rights of any participant; provided that an Offering Period may be terminated by the Board on or prior to an Exercise Date, or a new Exercise Date with respect to an Offering Period then in progress may be set by the Board, if the Board determines that such action with respect to the Offering Period is in the best interests of the Company and the stockholders or if continuation of the Offering Period under its current terms would cause the Company to incur adverse accounting charges under the generally accepted accounting principles applicable to the Plan.  In addition, to the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any applicable law or regulation), the Company shall obtain stockholder approval in such a manner and to such a degree as so required.

			
	
			
				 (b)
			Without stockholder consent and without regard to whether any participant rights may be considered to have been adversely affected, the Board shall be entitled 

		 

		

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	to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board determines in its sole discretion are advisable and consistent with the objectives of the Plan.

			
	
			
				 20.
			Notices.  All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

			
	
			
				 21.
			Conditions Upon Issuance and Limitations on Dispositions of Shares.

			
	
			
				 (a)
			Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

			
	
			
				 (b)
			As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

			
	
			
				 (c)
			Shares of Common Stock purchased under the Plan prior to the Restatement Date shall be subject to a six-month holding period from the Exercise Date upon which the shares were purchased.  During this time, the shares may not be sold, transferred, withdrawn, or moved; provided, however, that such prohibition will not apply following the death of a participant.  Effective as of the Restatement Date, shares of Common Stock purchased under the Plan on or after the Restatement Date will no longer be subject to a six-month restriction on sale, subject to such other limitations as provided for in the Plan, including Section 8; provided, however, that unless a participant (or his or her beneficiary, if applicable) sells his or her shares of Common Stock purchased under the Plan, such shares cannot otherwise be transferred, withdrawn or moved from the brokerage account to which such shares are deposited upon purchase hereunder until the first business day following the expiration of the Disqualifying Disposition Period, as defined below.

			
	
			
				 22.
			Information Regarding Disqualifying Dispositions.  By electing to participate in the Plan, each participant agrees to provide any information about any transfer of shares of 

		 

		

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	Common Stock acquired under the Plan that occurs within two years after the first business day of the Offering Period in which such shares were acquired and within one year after the day the shares of Common Stock were purchased (the “Disqualifying Disposition Period”) as may be requested by the Company or any Subsidiary in order to assist it in complying with applicable tax laws.

			
	
			
				 23.
			Right to Terminate Employment.  Nothing in the Plan or in any agreement entered into pursuant to the Plan shall confer upon any Employee the right to continue in the employment of the Company or any Subsidiary, or affect any right which the Company or any Subsidiary may have to terminate the employment of such Employee.

			
	
			
				 24.
			Rights as a Stockholder.  Neither the granting of an option nor a deduction from payroll shall result in an Employee being, or being deemed to be, the owner of the shares covered by an option.  No Employee shall have any rights or privileges as a stockholder unless and until an option has been exercised, and the shares underlying the option have been registered in the Company’s share register.

			
	
			
				 25.
			Term of Plan.  The Plan became effective upon its adoption by the Board on December 17, 2009 and shall continue in effect for a term of twenty years unless sooner terminated under paragraph 19.

			
	
			
				 26.
			Taxes.  Payroll deductions will be made on an after-tax basis.  The Company will have the right to make such provision as it deems necessary for, and may condition the exercise of an option on, the satisfaction of its obligations to withhold federal, state, local income or other taxes incurred by reason of the purchase or disposition of shares of Common Stock under the Plan.  

			
	
			
				 27.
			Applicable Law.  This Plan shall be governed in accordance with the laws of the State of Delaware, applied without giving effect to any conflict-of-law principles.

		 

		

			-10-irwd_Ex10_38

		
			Exhibit 10.38
		

		
			 
		

		
			 
		

		
			 
		

		
			JPMorgan Chase Bank, National Association
		

		
			London Branch
25 Bank Street
Canary Wharf
London E14 5JP
England
		

		
			 
		

			
					
						DATE:

					
					
						August 7, 2019

				
	
					
						 

					
					
						 

				
	
					
						TO:

					
					
						Ironwood Pharmaceuticals, Inc.

					
						301 Binney Street

					
						Cambridge, MA 02142

					
						Attn: Chief Legal Officer

					
						 

				
	
					
						FROM:

					
					
						JPMorgan Chase Bank, National Association

				
	
					
						 

					
					
						 

				
	
					
						SUBJECT:

					
					
						Partial Terminations of Relevant Transactions Listed on Attached Schedule A and Related Amendments

				

		
			 
		

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

		
			 
		

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

		
			 
		

		
			2.                   In consideration for the termination of the Terminated Portion of each Relevant Transaction, a “Termination Payment” with respect to the Terminated Portion of each Relevant Transaction shall be made in the amount set forth in Section 5, such Termination Payments to be made as further specified in Section 4 below. Each of Dealer and Counterparty hereby agrees that, upon receipt of the Termination Payments (as aggregated into a Net Termination Payment as provided in Section 3 below), with respect to the Terminated Portion of each Relevant Transaction: (i) such Terminated Portion of the Relevant Transaction and all of the respective rights and obligations of Dealer and Counterparty thereunder are cancelled and terminated as of the Termination Effective Date; (ii) Dealer releases and discharges Counterparty from and agrees not to make any claim against Counterparty with respect to any obligations of Counterparty arising out of, and to be performed in connection with, any Terminated Portion of a Relevant Transaction after the Termination Effective Date, including, but not limited to, any rights or obligations said to survive the termination of a Relevant Transaction in such Relevant Transaction’s confirmation in respect of the Terminated Portion of such Relevant Transaction and; (iii) Counterparty releases and discharges Dealer from and agrees not to make any claim against Dealer with respect to any obligations of Dealer arising out of, and to be 

		 

performed in connection with, any Terminated Portion of a Relevant Transaction after the Termination Effective Date, including, but not limited to, any rights or obligations said to survive the termination of a Relevant Transaction in such Relevant Transaction’s confirmation in respect of the Terminated Portion of such Relevant Transaction. Each of the parties hereby represents and acknowledges to the other that, upon receipt of the Termination Payments (as aggregated into a Net Termination Payment as provided in Section 3 below), no further amounts are owed by Dealer or Counterparty to any other party with respect to the Terminated Portion of each Relevant Transaction.
		

		
			 
		

		
			JPMorgan Chase Bank, National Association
		

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

		
			Main Office 1111 Polaris Parkway, Columbus, Ohio 43240
		

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

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

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

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

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

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

		
			  
		

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

		
			 
		

		
			4.                  Ironwood Payment Instructions:
		

		
			 
		

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

		
			  
		

			
					
						VWAP Price

					
					
						 

					
					
						 

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

					
					
						 

					
					
						 

					
					
						Termination Payment in respect of the
Terminated Portion of the Warrants

					
					
						 

				
	
					
						$

					
					
						 

					
					
						 

					
					
						$

					
					
						 

					
					
						 

					
					
						$

					
					
						 

				
	
					
						9.00

					
					
						 

					
					
						 

					
					
						$

					
11,201,801.31
					
					
						 

					
					
						 

					
					
						$

					
10,016,425.51
					
					
						 

				
	
					
						9.10

					
					
						 

					
					
						 

					
					
						$

					
11,438,876.47
					
					
						 

					
					
						 

					
					
						$

					
10,194,231.88
					
					
						 

				
	
					
						9.20

					
					
						 

					
					
						 

					
					
						$

					
11,735,220.42
					
					
						 

					
					
						 

					
					
						$

					
10,431,307.04
					
					
						 

				
	
					
						9.30

					
					
						 

					
					
						 

					
					
						$

					
12,031,564.37
					
					
						 

					
					
						 

					
					
						$

					
10,727,650.99
					
					
						 

				
	
					
						9.40

					
					
						 

					
					
						 

					
					
						$

					
12,327,908.32
					
					
						 

					
					
						 

					
					
						$

					
10,964,726.15
					
					
						 

				
	
					
						9.50

					
					
						 

					
					
						 

					
					
						$

					
12,624,252.27
					
					
						 

					
					
						 

					
					
						$

					
11,201,801.31
					
					
						 

				
	
					
						9.60

					
					
						 

					
					
						 

					
					
						$

					
12,920,596.22
					
					
						 

					
					
						 

					
					
						$

					
11,498,145.26
					
					
						 

				
	
					
						9.70

					
					
						 

					
					
						 

					
					
						$

					
13,276,208.96
					
					
						 

					
					
						 

					
					
						$

					
11,794,489.21
					
					
						 

				
	
					
						9.80

					
					
						 

					
					
						 

					
					
						$

					
13,572,552.91
					
					
						 

					
					
						 

					
					
						$

					
12,031,564.37
					
					
						 

				
	
					
						9.90

					
					
						 

					
					
						 

					
					
						$

					
13,868,896.86
					
					
						 

					
					
						 

					
					
						$

					
12,327,908.32
					
					
						 

				
	
					
						10.00

					
					
						 

					
					
						 

					
					
						$

					
14,165,240.81
					
					
						 

					
					
						 

					
					
						$

					
12,564,983.48
					
					
						 

				
	
					
						10.10

					
					
						 

					
					
						 

					
					
						$

					
14,520,853.55
					
					
						 

					
					
						 

					
					
						$

					
12,861,327.43
					
					
						 

				
	
					
						10.20

					
					
						 

					
					
						 

					
					
						$

					
14,817,197.50
					
					
						 

					
					
						 

					
					
						$

					
13,098,402.59
					
					
						 

				
	
					
						10.30

					
					
						 

					
					
						 

					
					
						$

					
15,113,541.45
					
					
						 

					
					
						 

					
					
						$

					
13,394,746.54
					
					
						 

				
	
					
						10.40

					
					
						 

					
					
						 

					
					
						$

					
15,469,154.19
					
					
						 

					
					
						 

					
					
						$

					
13,691,090.49
					
					
						 

				
	
					
						10.50

					
					
						 

					
					
						 

					
					
						$

					
15,765,498.14
					
					
						 

					
					
						 

					
					
						$

					
13,928,165.65
					
					
						 

				
	
					
						10.60

					
					
						 

					
					
						 

					
					
						$

					
16,121,110.88
					
					
						 

					
					
						 

					
					
						$

					
14,283,778.39
					
					
						 

				
	
					
						10.70

					
					
						 

					
					
						 

					
					
						$

					
16,417,454.83
					
					
						 

					
					
						 

					
					
						$

					
14,520,853.55
					
					
						 

				
	
					
						10.80

					
					
						 

					
					
						 

					
					
						$

					
16,773,067.57
					
					
						 

					
					
						 

					
					
						$

					
14,817,197.50
					
					
						 

				
	
					
						10.90

					
					
						 

					
					
						 

					
					
						$

					
17,128,680.31
					
					
						 

					
					
						 

					
					
						$

					
15,113,541.45
					
					
						 

				

		
			

		 

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

			
					
						 

					
					
						

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

				

		
			  
		

			
					
						 

					
					
						

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

				

		
			 
		

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

		
			 
		

		

		 

	
					
						

					
						 

					
					
						a.

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

				

		
			 
		

			
					
						 

					
					
						b.

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

				

		
			 
		

			
					
						 

					
					
						c.

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

				

		
			 
		

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

		
			 
		

			
					
						 

					
					
						a.

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

				

		
			 
		

			
					
						 

					
					
						b.

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

				

		
			 
		

		

		 

	
					
						

					
						 

					
					
						c.

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

				

		
			 
		

			
					
						 

					
					
						d.

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

				

		
			 
		

			
					
						 

					
					
						e.

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

				

		
			 
		

			
					
						 

					
					
						f.

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

				

		
			 
		

			
					
						 

					
					
						g.

					
					
						No state or local (including any non-U.S. jurisdiction’s) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity), except for the reporting requirements of the Exchange Act and rules promulgated thereunder as a result of Dealer or its affiliates owning or holding (however defined) Shares.

				

		
			 
		

			
					
						 

					
					
						h.

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

				

		
			 
		

			
					
						 

					
					
						i.

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

				

		
			 
		

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

		
			 
		

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

		
			 
		

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

		 

Relevant Transaction, any indenture or otherwise shall not be cancelled or terminated. Following such cancellation and termination of this Confirmation, except in the case set forth in the proviso above, each party shall be released and discharged by the other party from, and agrees not to make any claim against the other party with respect to, any obligations or liabilities of either party arising out of and to be performed in connection with this Transaction either prior to or after the Termination Transaction Contingency Date.
		

		
			 
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			[The remainder of page intentionally left blank]
		

		
			

		 

 
		

		
			  
		

		
			This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimile or portable document format (.pdf) copies of this Confirmation shall have the same force and effect as an original.
		

		
			 
		

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

		
			 
		

			
					
						Very Truly Yours,

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Kevin Cheng

					
					
						 

				
	
					
						Name: 

					
					
						Kevin Cheng

					
					
						 

				
	
					
						Title: 

					
					
						Vice President

					
					
						 

				

		
			 
		

		
			JPMorgan Chase Bank, National Association
		

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

		
			Main Office 1111 Polaris Parkway, Columbus, Ohio 43240
		

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

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

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

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

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

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

		
			  
		

		
			 
		

		
			

		 

 
		

		
			 
		

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

		
			 
		

			
					
						IRONWOOD PHARMACEUTICALS, INC.

					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Gina Consylman

					
					
						 

				
	
					
						Name: 

					
					
						Gina Consylman

					
					
						 

				
	
					
						Title: 

					
					
						SVP and CFO, Finance

					
					
						 

				

		
			 
		

		
			[Signature Page to Unwind Agreement]
		

		
			 
		

		
			
		

		
			Schedule A
		

		
			 
		

			
					
						Relevant Transaction 

					
					
						 

					
					
						Number of Options or 
Warrants, As Applicable, of 
such Relevant Transaction
Subject to Termination 

					
					
						 

					
					
						Revisions to the Terms of the 
Relevant Transaction 

				
	
					
						Base call option transaction confirmation, dated as of June 10, 2015, by and between Dealer and Counterparty

					
					
						 

					
					
						215,000 Options

					
					
						 

					
					
						Number of Options shall be revised to equal 85,000

				
	
					
						Base warrant transaction confirmation, dated as of June 10, 2015, by and between Dealer and Counterparty

					
					
						 

					
					
						5,926,879  Warrants

					
					
						 

					
					
						Number of Warrants shall be revised to equal 2,343,185

				

		
			 
		

		
			

		 

 
		

		
			Amendment Agreement
		

		
			 
		

		
			 
		

		
			 
		

		
			This Amendment Agreement is made as of January 3, 2020 between JPMorgan Chase Bank, National Association London Branch (“Dealer”) and Ironwood Pharmaceuticals, Inc. (“Counterparty”).
		

		
			 
		

		
			WHEREAS, Counterparty and Dealer confirmed the terms of the partial termination of certain transactions and related amendments (the “Unwind Agreement”) on August 7, 2019;
		

		
			WHEREAS, Counterparty and Dealer wish to amend Schedule A of the Unwind Agreement solely to revise the Maximum Number of Shares under the Warrants as set forth herein;
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the mutual agreements herein contained, Counterparty and Dealer hereby acknowledge and agree as follows:
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Amendment.

		
			 
		

		
			Schedule A of the Unwind Agreement shall be amended to add a third row to the table therein as follows:
		

		
			 
		

			
					
						Relevant Transaction

					
					
						Number of Options or Warrants, As Applicable, of such Relevant Transaction Subject to Termination

					
					
						Revisions to the Terms of the Relevant Transaction

				
	
					
						Base warrant transaction confirmation, dated as of June 10, 2015, by and between Dealer and Counterparty

					
					
						 

					
						----

					
					
						Maximum Number of Shares shall be revised to equal 4,686,370

				

		
			 
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			Definitions.  Any capitalized term not otherwise defined herein shall have the meaning set forth in the Unwind Agreement. 

		
			 
		

			
	
			
				 3.
			

			
	
			
			Counterparts. This Amendment Agreement may be executed, acknowledged and delivered in any number of counterparts and all such counterparts taken together shall be deemed to constitute one and the same agreement.

		
			 
		

			
	
			
				 4.
			

			
	
			
			Amendment. No amendment, modification or waiver in respect of this Amendment Agreement will be effective unless in writing and executed by each party.

		
			 
		

			
	
			
				 5.
			

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

		
			 
		

			
	
			
				 6.
			

			
	
			
			Waiver of Jury Trial. Each party hereby irrevocably waives any and all rights to trial by jury with respect to any legal proceeding arising out or relating to this Amendment.  

		
			

		 

		

		
			 
		

		
			IN WITNESS WHEREOF, the parties hereto have signed this Amendment Agreement as of the date and year first above written.
		

		
			 
		

		
			 
		

			
					
						IRONWOOD PHARMACEUTICALS, INC.

					
						 

					
						 

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

					
					
						J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association

					
						 

					
						 

					
						By: /s/ Kevin Cheng          
Name:  Kevin Cheng
Title:  Vice President

					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00304-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00304-of-00352.parquet"}]]