X0306 4 2020-01-16 1 0001019695 ARQULE INC ARQL 0001237409 BARABE TIMOTHY C C/O ARQULE, INC. ONE WALL STREET BURLINGTON MA 01803 1 0 0 0 Common Stock 2020-01-16 4 U 0 146897 20.00 D 0 D Stock Option (Right to Buy) 2.48 2020-01-16 4 D 0 20000 D 2028-05-08 Common Stock 20000 0 D Stock Option (Right to Buy) 6.21 2020-01-16 4 D 0 40000 D 2029-05-13 Common Stock 40000 0 D Stock Option (Right to Buy) 6.14 2020-01-16 4 D 0 15000 D 2020-05-13 Common Stock 15000 0 D Stock Option (Right to Buy) 6.71 2020-01-16 4 D 0 15000 D 2021-06-01 Common Stock 15000 0 D Stock Option (Right to Buy) 5.82 2020-01-16 4 D 0 15000 D 2022-05-24 Common Stock 15000 0 D Stock Option (Right to Buy) 2.78 2020-01-16 4 D 0 15000 D 2023-05-20 Common Stock 15000 0 D Stock Option (Right to Buy) 1.42 2020-01-16 4 D 0 15000 D 2024-05-13 Common Stock 15000 0 D Stock Option (Right to Buy) 1.80 2020-01-16 4 D 0 15000 D 2025-05-11 Common Stock 15000 0 D Stock Option (Right to Buy) 1.68 2020-01-16 4 D 0 20000 D 2026-05-24 Common Stock 20000 0 D Stock Option (Right to Buy) 1.23 2020-01-16 4 D 0 20000 D 2027-05-23 Common Stock 20000 0 D On December 6, 2019, ArQule, Inc. (the "Company") entered into an Agreement and Plan of Merger (as amended, supplemented or otherwise modified from time to time, the "Merger Agreement") with Merck Sharpe & Dohme Corp. ("MSD") and Argon Merger Sub, Inc., a wholly-owned subsidiary of MSD ("Merger Sub"), pursuant to which MSD acquired the Company by a tender offer for all shares of Company common stock (the "Offer") and a subsequent merger (the "Merger"), each of which became effective on January 16, 2020. Pursuant to the Merger Agreement, (i) Merger Sub purchased all shares of Company common stock that were validly tendered pursuant to the Offer for a cash payment equal to $20.00 per share (the "Offer Price") and (ii) all shares of Company common stock outstanding immediately prior to the effective time of the Merger (the "Effective Time"), were cancelled and converted automatically into the right to receive the Offer Price. Pursuant to the Merger Agreement, immediately prior to the Effective Time, all outstanding Company stock options, to the extent unvested, became fully vested, and at the Effective Time, each outstanding Company stock option was cancelled and converted into the right to receive an amount of cash (subject to any applicable withholding or other taxes required by applicable law) determined by multiplying (i) the number of shares of Company common stock subject to such stock option immediately prior to such cancellation by (ii) the excess, if any, of an amount in cash equal to the Offer Price, without any interest, over the exercise price per share of Company common sotck subject to such stock option, less any applicable tax withholding. Any such option that had an exercise price that equaled or exceeded the Offer Price was cancelled for no consideration. /s/ Stephen Migausky by Power of Attorney for Timothy C Barabe 2020-01-16