Document:

Exhibit 10.2

 

Deutsche Bank 

 

Deutsche
Bank AG London 

Winchester house

1 Great Winchester St, 

London EC2N 2DB 

Telephone:  44 20
7545 8000

 

c/o Deutsche Bank Securities Inc.

60 Wall
Street

New York, NY
10005

Telephone:
(212) 250-2500

	
  DATE:

  	
  October 24, 2006

  
	
   

  	
   

  
	
  TO:

  	
  United Therapeutics Corporation

  
	
  ATTENTION:

  	
  John Ferrari, Chief Financial Officer

  
	
  TELEPHONE:

  	
  (301) 608-9292

  
	
  FACSIMILE:

  	
  (301) 608-3049

  
	
   

  	
   

  
	
  FROM:

  	
  Deutsche Bank AG London

  
	
  TELEPHONE:

  	
  44 20 7545 8193

  
	
  FACSIMILE:

  	
  44 11 3336 2009

  
	
   

  	
   

  
	
  SUBJECT:

  	
  Equity Derivatives Confirmation

  
	
   

  	
   

  
	
  REFERENCE NUMBER(S):

  	
  137554

  

 

The
purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and conditions
of the transaction entered into between Deutsche
Bank AG acting through its London branch (“Deutsche”) and United Therapeutics Corporation (“Counterparty”) on the Trade Date specified below (the
“Transaction”).  This
Confirmation constitutes a “Confirmation” as referred to in the ISDA Master
Agreement specified below.  This
Confirmation constitutes the entire agreement and understanding of the parties
with respect to the subject matter and terms of the Transaction and supersedes
all prior or contemporaneous written and oral communications with respect
thereto.

 

DEUTSCHE BANK
AG IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED.  DEUTSCHE BANK
SECURITIES INC. (“AGENT”) HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE
TRANSACTION AND HAS NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE
OR OTHERWISE WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE
TRANSACTION.  DEUTSCHE BANK AG LONDON IS
NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

 

The
definitions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International
Swaps and Derivatives Association, Inc., are incorporated into this
Confirmation.  In the event of any
inconsistency between the Equity Definitions and the terms of this Confirmation,
the terms of this Confirmation shall
govern.  For the purposes of the Equity
Definitions, each reference herein to a Warrant shall be deemed to be a
reference to a Call or an Option, as context requires.

 

	
  Chairman of the Supervisory Board:
  Clemens Börsig Board of Managing Directors: Hermann-Josef Lamberti, Josef
  Ackermann, Tessen von Heydebreck, Anthony DiIorio, Hugo Banziger

  	
   

  	
  Deutsche Bank AG is regulated by the FSA for the
  conduct of designated investment business in the UK, is a member of the
  London Stock Exchange and is a limited liability company incorporated in the
  Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am
  Main; Branch Registration No. in England and Wales BR000005, Registered
  address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.

  

 

 1
 

 

 

This Confirmation
evidences a complete and binding agreement between Deutsche and Counterparty as
to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall supplement, form a
part of, and be subject to an agreement (the “Agreement”)
in the form of the 2002 ISDA Master Agreement (the “ISDA Form”)
as if Deutsche and Counterparty had executed an agreement in such form (without
any Schedule but with the elections set forth in this Confirmation).  For the avoidance of doubt, the Transaction
shall be the only transaction under the Agreement.

 

2.              The
Transaction is a Warrant Transaction, which shall be considered a Share Option
Transaction for purposes of the Equity Definitions, and shall have the
following terms:

	
  General:

  	
   

  
	
   

  	
   

  
	
  Trade Date:

  	
  October 25, 2006.

  
	
   

  	
   

  
	
  Effective Date:

  	
  October 30, 2006.

  
	
   

  	
   

  
	
  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:

  	
  Counterparty.

  
	
   

  	
   

  
	
  Buyer:

  	
  Deutsche.

  
	
   

  	
   

  
	
  Shares:

  	
  The common stock, par value USD 0.01 per share, of
  Counterparty.

  
	
   

  	
   

  
	
  Number of Warrants:

  	
  For each Component, as provided in Annex B to
  this Confirmation.

  
	
   

  	
   

  
	
  Strike Price:

  	
  USD 105.6890.

  
	
   

  	
   

  
	
  Premium:

  	
  USD 45,350,000.

  
	
   

  	
   

  
	
  Premium Payment Date:

  	
  The Effective Date.

  
	
   

  	
   

  
	
  Exchange:

  	
  The Nasdaq Global Select Market of the Nasdaq Stock
  Market, Inc.

  
	
   

  	
   

  
	
  Related Exchanges:

  	
  All Exchanges.

  
	
   

  	
   

  
	
  Calculation Agent:

  	
  Deutsche. The Calculation Agent shall, upon
  reasonable written request by either party, provide a written explanation of
  any calculation or adjustment made by it including, where applicable, a
  description of the methodology and data applied.

  
	
   

  	
   

  
	
  Procedure for Exercise:

  	
   

  

 

 2
 

 

 

	
  In respect of any Component:

  	
   

  
	
   

  	
   

  
	
  Expiration Date:

  	
  As provided in Annex B 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
  furtherthat if the
  Expiration Date has not occurred pursuant to the preceding proviso as of the
  Final Disruption Date, 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 Equity Definitions, the Relevant Price
  for the Expiration Date shall be the prevailing market value per Share
  determined by the Calculation Agent in a commercially reasonable manner. “Final Disruption Date”
  means April 3, 2012. 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 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. Section 6.6 of the Equity Definitions shall not apply to any
  Valuation Date occurring on an Expiration Date.

  
	
   

  	
   

  
	
  Automatic Exercise:

  	
  Applicable. Solely for purposes of this provision,
  Section 3.4 of the Equity Definitions shall govern, and the Transaction shall
  be deemed to be a Cash-settled Call Option.

  
	
   

  	
   

  
	
  Market Disruption Event:

  	
  Section 6.3(a) of the Equity Definitions is hereby
  amended 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 by
  amending and restating clause (a)(iii) thereof in its entirety to read as
  follows: “(iii) an Early Closure that the Calculation Agent determines is
  material.”

  
	
   

  	
   

  
	
  Settlement Terms:

  	
   

  
	
   

  	
   

  
	
  In
  respect of any Component:

  	
   

  
	
   

  	
   

  
	
  Net Share Settlement:

  	
  On each Settlement Date, Counterparty shall deliver
  to Deutsche a number of Shares equal to the Net Share Amount for such
  Settlement Date to the account specified by Deutsche, and cash in lieu of any

  

 

 3
 

 

 

	
  

  	
  fractional shares valued at the Relevant Price for
  the Valuation Date corresponding to such Settlement Date. If, in the good
  faith reasonable judgment of Deutsche, the Shares deliverable hereunder would
  not be immediately freely transferable by Deutsche under Rule 144(k) under
  the U.S. Securities Act of 1933, as amended (the “Securities
  Act”), then Deutsche may elect to either (x) accept delivery of
  such Shares notwithstanding the fact that such Shares are not freely
  transferable by Deutsche under Rule 144(k) or (y) require that such delivery
  take place pursuant to the provisions set forth opposite the caption “Registration/Private Placement Procedures” below.

  	 

	
   

  	
   

  	 

	
  Net Share Amount:

  	
  For any Exercise Date, a number of Shares, as
  calculated by the Calculation Agent, equal to the product of (i) the number
  of Warrants being exercised or deemed exercised on such Exercise Date, and (ii) the excess, if any, of the Relevant Price for the
  Valuation Date occurring on such Exercise Date over the Strike Price (such
  product, the “Net Share Settlement
  Amount”), divided by
  such Relevant Price.

  	 

	
   

  	
   

  	 

	
  Relevant Price:

  	
  On any Valuation Date, the Rule 10b-18 volume
  weighted average price per Share as displayed under the heading “Bloomberg
  VWAP” on Bloomberg Page UTHR <equity> AQR on such Valuation Date (or if
  such volume weighted average price is not available, the Calculation Agent’s
  reasonable, good faith estimate of such price on such Valuation Date).

  
	
   

  	
   

  
	
  Settlement Currency:

  	
  USD.

  
	
   

  	
   

  
	
  Other Applicable Provisions:

  	
  The provisions of Sections 9.1(c), 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 as a result of the fact that Counterparty is
  the Issuer of the Shares) and 9.12 of the Equity Definitions will be
  applicable, except that all references in such provisions to
  “Physically-Settled” shall be read as references to “Net Share Settled”. “Net
  Share Settled” in relation to any Warrant means that Net Share Settlement is
  applicable to such Warrant.

  
	
   

  	
   

  
	
  Dividends:

  	
   

  
	
   

  	
   

  
	
  In
  respect of any Component:

  	
   

  
	
   

  	
   

  
	
  Dividend Adjustments:

  	
  In the event that Issuer pays a Relevant Dividend,
  on the ex dividend date for such Relevant Dividend, the Strike Price shall be
  adjusted by dividing the Strike Price previously in effect by the Adjustment
  Ratio for such Relevant Dividend and the Number of Warrants shall be adjusted
  by multiplying the Number of Warrants previously in effect by such Adjustment
  Ratio.

  
	
   

  	
   

  
	
  Adjustment Ratio:

  	
  For any Relevant Dividend, a fraction (A) the
  numerator of which is

  

 

 4
 

 

 

	
  

  	
  equal to the Current Market Price for such Relevant
  Dividend and (B) the denominator of which is such Current Market Price minus
  the amount of such Relevant Dividend.

  
	
   

  	
   

  
	
  Current Market Price:

  	
  For any Relevant Dividend, the Relevant Price of the
  Shares on the Exchange Business Day immediately preceding the ex-dividend
  date for such Relevant Dividend (determined as if such Exchange Business Day
  were a Valuation Date).

  
	
   

  	
   

  
	
  Relevant Dividend:

  	
  Any cash dividend or distribution that has an
  ex-dividend date occurring on or after the Trade Date and on or prior to the
  Expiration Date (it being understood, for the avoidance of doubt, that such
  term shall not include (i) a distribution of cash by Issuer as payment of
  consideration in connection with a Tender Offer or (ii) a distribution in
  connection with the liquidation, dissolution or winding up of Issuer).

  
	
   

  	
   

  
	
  Adjustments:

  	
   

  
	
   

  	
   

  
	
  In
  respect of any Component:

  	
   

  
	
   

  	
   

  
	
  Method of Adjustment:

  	
  Calculation Agent Adjustment; provided, however, that the Equity
  Definitions shall be amended by replacing the words “diluting or
  concentrative” in Sections 11.2(a), 11.2(c) (in two instances) and
  11.2(e)(vii) with the word “material” and by adding the words “or the
  Transaction” after the words “theoretical value of the relevant Shares” in
  Sections 11.2(a), 11.2(c) and 11.2(e)(vii); provided
  further that adjustments may be made to account for changes in
  volatility, expected dividends, expected correlation, stock loan rate and
  liquidity relative to the relevant Share.

  
	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

  
	
   

  	
   

  
	
  New Shares:

  	
  In the definition of New Shares in Section 12.1(i)
  of the Equity Definitions, the text in clause (i) thereof shall be deleted in
  its entirety and replaced with “publicly quoted, traded or listed on any of
  the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global
  Select Market or the NASDAQ Global Market (or their respective successors)”.

  
	
   

  	
   

  
	
  (a) Share-for-Share:

  	
  Modified Calculation Agent Adjustment.

  
	
   

  	
   

  
	
  (b) Share-for-Other:

  	
  Modified Calculation Agent Adjustment.

  
	
   

  	
   

  
	
  (c) Share-for-Combined:

  	
  Component Adjustment.

  
	
   

  	
   

  
	
  Tender Offer:

  	
  Applicable

  
	
   

  	
   

  
	
  Consequences of Tender Offers:

  	
   

  
	
   

  	
   

  
	
  (a) Share-for-Share:

  	
  Modified Calculation Agent Adjustment.

  
	
   

  	
   

  
	
  (b) Share-for-Other:

  	
  Modified Calculation Agent Adjustment.

  

 

 5
 

 

 

	
  (c) Share-for-Combined:

  	
  Component Adjustment.

  
	
   

  	
   

  
	
  Nationalization, Insolvency and Delisting:

  	
  Cancellation and Payment; 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 American 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 be deemed to be the Exchange. For the
  avoidance of doubt, the occurrence of any event that is a Merger Event and
  would otherwise have been a Delisting will have the consequence specified for
  the relevant Merger Event.

  
	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  
	
   

  	
   

  
	
  Change in Law:

  	
  Applicable

  
	
   

  	
   

  
	
  Failure to Deliver:

  	
  Applicable

  
	
   

  	
   

  
	
  Insolvency Filing:

  	
  Applicable

  
	
   

  	
   

  
	
  Loss of Stock Borrow:

  	
  Applicable

  
	
   

  	
   

  
	
  Maximum Stock
  Loan Rate:

  	
  100 basis points per annum

  
	
   

  	
   

  
	
  Increased Cost of Stock Borrow:

  	
  Applicable

  
	
   

  	
   

  
	
  Initial Stock
  Loan Rate:

  	
  40 basis points per annum

  
	
   

  	
   

  
	
  Increased Cost of Hedging:

  	
  Applicable

  
	
   

  	
   

  
	
  Hedging Party:

  	
  Deutsche for all applicable Additional Disruption
  Events

  
	
   

  	
   

  
	
  Determining Party:

  	
  Deutsche for all applicable Additional Disruption
  Events

  
	
   

  	
   

  
	
  Non-Reliance:

  	
  Applicable

  
	
   

  	
   

  
	
  Agreements and Acknowledgements

  	
   

  
	
  Regarding Hedging Activities:

  	
  Applicable

  
	
   

  	
   

  
	
  Additional Acknowledgements:

  	
  Applicable

  

 

Mutual
Representations: Each of Deutsche and Counterparty represents and warrants to, and
agrees with, the other party that:

(i)                                     Tax Disclosure. Notwithstanding anything to the contrary herein,
in the Equity Definitions or in the Agreement, and notwithstanding any express
or implied claims of exclusivity or proprietary rights, the parties (and each
of their employees, representatives or other agents) are authorized to disclose
to any 

 6
 

 

 

and all persons, beginning
immediately upon commencement of their discussions and 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 by either party to the other relating to such tax treatment and tax
structure.

(ii)                                  Commodity Exchange Act. It is an “eligible contract
participant” within the meaning of Section 1a(12) of the U.S. Commodity
Exchange Act, as amended (the “CEA”). The
Transaction has been subject to individual negotiation by the parties. The
Transaction has not been executed or traded on a “trading facility” as defined
in Section 1a(33) of the CEA. It has entered into the Transaction with the expectation and intent that the
Transaction shall be performed to its termination date.

(iii)                               Securities Act. It is a “qualified institutional
buyer” as defined in Rule 144A under the Securities Act, or an “accredited
investor” as defined under the Securities Act.

(iv)                              Investment Company Act. It is a “qualified purchaser” as
defined under the U.S. Investment Company Act of 1940, as amended.

(v)                                 ERISA.The assets used in the Transaction
(1) are not assets of any “plan” (as such term is defined in Section 4975 of
the U.S. Internal Revenue Code (the “Code”))
subject to Section 4975 of the Code or any “employee benefit plan” (as such
term is defined in Section 3(3) of the U.S. Employee Retirement Income Security
Act of 1974, as amended (“ERISA”))
subject to Title I of ERISA, and (2) do not constitute “plan assets” within the
meaning of Department of Labor Regulation 2510.3-101, 29 CFR Section
2510-3-101.

Counterparty Representations: In addition to the representations and warranties in the Agreement
and those contained elsewhere herein, Counterparty represents, warrants and
acknowledges (on the Trade Date unless otherwise specified) that:

(i)                                     (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 Deutsche 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 Deutsche or any of its affiliates shall be deemed to be an assurance or
guarantee as to the expected results of the Transaction.

(ii)                                  Counterparty
is not entering into the Transaction for the purpose of (i) creating actual or
apparent trading activity in the Shares (or any security convertible into or
exchangeable for the Shares) or (ii) raising or depressing or otherwise
manipulating the price of the Shares (or any security convertible into or
exchangeable for the Shares), in either case in violation of Section 9 of the
U.S. Securities Exchange Act of 1934, as amended (the “Exchange
Act”).

(iii)                               Counterparty’s
filings under the Securities Act, the Exchange Act, and other applicable
securities laws that are required to be filed have been filed and, as of the
respective dates thereof and as of the date of this representation, there is no
misstatement of material fact contained therein or omission of a material fact
required to be stated therein or necessary to make the statements made therein,
in the light of the circumstances under which they were made, not misleading.

 7
 

 

 

(iv)                              Counterparty
has not violated any applicable law (including, without limitation, the
Securities Act and the Exchange Act) in any material respect in connection with
the Transaction.

(v)                                 The
representations and warranties of Counterparty set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement (the “Purchase Agreement”) dated as of
the Trade Date between Counterparty and Deutsche Bank Securities Inc. as
representative of the initial purchaser party thereto are true and correct and
are hereby deemed to be repeated to Deutsche as if set forth herein.

(vi)                              The Shares issuable upon exercise of all Warrants
(the “Warrant Shares”) have been duly
authorized and, when delivered pursuant to the terms of such Transaction, shall
be validly issued, fully-paid and non-assessable, and such issuance of the
Warrant Shares shall not be subject to any preemptive or similar rights.

(vii)                           Counterparty
is not as of the Trade Date, and shall not be after giving effect to the
transactions contemplated hereby, insolvent.

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

(ix)                                Without limiting the generality of
Section 13.1 of the Equity Definitions, Counterparty acknowledges that Deutsche
is not making any representations or warranties with respect to the treatment
of the Transaction under FASB Statements 133, as amended, or 150, EITF Issue
No. 00-19 (or any successor issue statements) or under FASB’s Liabilities &
Equity Project.

(x)                                   Counterparty
understands, agrees and acknowledges that no obligations of Deutsche to it
hereunder, if any, shall be entitled to the benefit of deposit insurance and
that such obligations shall not be guaranteed by any affiliate of Deutsche or
any governmental agency.

Counterparty
Covenants: In addition to the covenants in the
Agreement and those contained elsewhere herein, Counterparty hereby covenants
that:

 

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

(ii)                                  Counterparty
shall not (a) violate or (b) take any action, or refrain from taking any
action, that in either case could reasonably be expected to cause Deutsche or
any of its affiliates to violate any applicable law (including, without
limitation, the Securities Act and the Exchange Act) in any material respect in
connection with the Transaction.

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

Miscellaneous:

 

Effectiveness. If, prior to the
Effective Date, Deutsche reasonably determines that it is advisable to cancel
the Transaction because of concerns that Deutsche’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.

 8

 

 

Netting and Set-Off.  The parties hereto agree
that the Transaction shall not be subject to netting or set off with any other
transaction.

 

Qualified
Financial Contracts.  It is the intention 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).

 

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

 

Status of Claims in Bankruptcy.  Deutsche acknowledges and agrees that this
Confirmation is not intended to convey to Deutsche rights with respect to the
Transaction that are senior to the claims of common stockholders in any U.S.
bankruptcy proceedings of Counterparty; provided
that nothing herein shall limit or shall be deemed to limit Deutsche’s right to
pursue remedies in the event of a breach by Counterparty of its obligations and
agreements with respect to the Transaction either outside of a bankruptcy
proceeding or (subject only to the limitation on seniority in the preceding
clause) within a bankruptcy proceeding; provided, further, that
nothing herein shall limit or shall be deemed to limit Deutsche’s rights in
respect of any transactions other than the Transaction.

 

No Collateral.  Notwithstanding any provision of this
Confirmation, the Agreement, 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.

 

Securities
Contract; Swap Agreement.  The parties hereto agree and acknowledge that
Deutsche 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 United States Code (the “Bankruptcy
Code”).  The parties hereto
further agree and acknowledge (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 is 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 is a
“transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code,
and (B) that Deutsche is entitled to the protections afforded by, among other
sections, Section 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the
Bankruptcy Code.

 

Alternative Calculations and
Counterparty Payment on Early Termination and on Certain Extraordinary Events.  If Counterparty owes Deutsche any amount in
connection with the Transaction pursuant to Sections 12.2, 12.3, 12.6, 12.7 or
12.9 of the Equity Definitions (except in the case of an Extraordinary Event in
which the consideration or proceeds to be paid to holders of Shares as a result
of such event consists solely of cash) or pursuant to Section 6(d)(ii) of the
Agreement (except in the case of an Event of Default in which Counterparty is
the Defaulting Party or a Termination Event in which Counterparty is the
Affected Party, other than (x) an Event of Default of the type described in
Section 5(a)(iii), (v), (vi) or (vii) of the Agreement or (y) a Termination
Event of the type described in Section 5(b)(i), (ii), (iii), (iv), (v) or (vi)
of the Agreement that in the case of either (x) or (y) resulted from an event
or events outside Counterparty’s control) (a “Counterparty
Payment Obligation”), Counterparty shall have the right, in its sole
discretion, to satisfy any such Counterparty Payment Obligation by delivery of
Termination Delivery Units (as defined below) by giving irrevocable telephonic
notice to Deutsche, confirmed in writing within one Scheduled Trading Day,
between the hours of 9:00 a.m. and 4:00 p.m. New York time on the Early
Termination Date or other date the transaction is terminated, as applicable (“Notice of Counterparty Termination Delivery”).  Within a commercially reasonable period of
time following receipt of a Notice of Counterparty Termination Delivery,
Counterparty shall deliver to Deutsche a number of Termination Delivery Units
having a cash value equal to the amount of such Counterparty Payment Obligation
(such number of Termination Delivery Units to be delivered to be determined by
the Calculation Agent as the number of whole Termination Delivery Units that
could be sold over a commercially reasonable period of time to generate
proceeds equal to the cash equivalent of such payment obligation, and the date
of such delivery, the “Termination Payment Date”).  In addition, if, in the good faith reasonable
judgment of Deutsche, for any 

 9
 

 

 

reason, the Termination
Delivery Units deliverable pursuant to this paragraph would not be immediately
freely transferable by Deutsche under Rule 144(k) under the Securities Act,
then Deutsche may elect either to (x) accept delivery of such Termination
Delivery Units notwithstanding any restriction on transfer or (y) require that
such delivery take place pursuant to the provisions set forth opposite the
caption “Registration/Private Placement Procedures”
below.  If the provisions set forth in this
paragraph are applicable, the provisions of Sections 9.8, 9.9, 9.10, 9.11
(modified as described above) and 9.12 of the Equity Definitions shall be
applicable, except that all references to “Shares” shall be read as references
to “Termination Delivery Units.”

 

“Termination
Delivery Unit” means (a) in the case of a Termination Event, an
Event of Default or an Extraordinary Event (other than an Insolvency,
Nationalization, Merger Event or Tender Offer), one Share or (b) in the case of
an Insolvency, Nationalization, Merger Event or Tender Offer, 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.  If a Termination Delivery Unit consists of
property other than cash or New Shares and Counterparty provides irrevocable
written notice to the Calculation Agent on or prior to the Closing Date that it
elects to receive cash, New Shares or a combination thereof (in such proportion
as Counterparty designates) in lieu of such other property, the Calculation
Agent shall replace such property with cash, New Shares or a combination thereof
as components of a Termination Delivery Unit in such amounts, as determined by
the Calculation Agent in its discretion by commercially reasonable means, as
shall have a value equal to the value of the property so replaced.  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.

 

Registration/Private Placement
Procedures.  If, in the
reasonable opinion of Deutsche, following any delivery of Shares or Termination
Delivery Units to Deutsche hereunder, such Shares or Termination Delivery Units
would be in the hands of Deutsche subject to any applicable restrictions with
respect to any registration or qualification requirement or prospectus delivery
requirement for such Shares or Termination Delivery Units pursuant to any
applicable federal or state securities law (including, without limitation, any
such requirement arising under Section 5 of the Securities Act as a result of
such Shares or Termination Delivery Units being “restricted securities”, as
such term is defined in Rule 144 under the Securities Act, or as a result of
the sale of such Shares or Termination Delivery Units being subject to paragraph
(c) of Rule 145 under the Securities Act) (such Shares or Termination Delivery
Units, “Restricted Shares”), then delivery of
such Restricted Shares shall be effected pursuant to either clause (i) or (ii)
of Annex A hereto at the election of Counterparty, unless waived by Deutsche.
Notwithstanding the foregoing, solely in respect of any Warrants exercised or
deemed exercised on any Exercise Date, the Counterparty shall elect, prior to
the first Settlement Date for the first Exercise Date, a Private Placement
Settlement (as defined in Annex A hereto) or Registration Settlement (as
defined in Annex A hereto) for all deliveries of Restricted Shares for all such
Exercise Dates which election shall be applicable to all Settlement Dates for
such Warrants and the procedures in clause (i) or clause (ii) of Annex A hereto
shall apply for all such delivered Restricted Shares on an aggregate basis
commencing after the final Settlement Date for such Warrants. The Calculation
Agent shall make reasonable adjustments to settlement terms and provisions
under this Confirmation to reflect a single Private Placement Settlement or
Registration Settlement for such aggregate Restricted Shares delivered
hereunder.  If the Private Placement
Settlement or the Registration Settlement shall not be effected as set forth in
clauses (i) or (ii) of Annex A, as applicable, then failure to effect such
Private Placement Settlement or such Registration Settlement shall constitute
an Event of Default with respect to which Counterparty shall be the Defaulting
Party.

 

Share Deliveries.  Counterparty acknowledges and agrees that, to
the extent that Deutsche is not then an affiliate, as such term is used in Rule
144 under the Securities Act, of Counterparty and has not been such an
affiliate of Counterparty for 90 days (it being understood that Deutsche shall
not be considered such an affiliate of Counterparty solely by reason of its
right to receive of Shares pursuant to a Transaction hereunder), and otherwise
satisfies all holding period and other requirements of Rule 144 under the
Securities Act applicable to it, any Shares or Termination Delivery Units
delivered hereunder at any time after 2 years from the Premium Payment Date
shall be eligible for resale under Rule 144(k) under the Securities Act, and
Counterparty agrees to promptly remove, or cause the transfer agent for such
Shares or Termination Delivery Units to remove, any legends referring to any
restrictions on resale under the Securities Act from the certificates
representing such Shares or 

 10
 

 

 

Termination Delivery
Units.  Counterparty further agrees that
with respect to any Shares or Termination Delivery Units delivered hereunder at
any time after 1 year from the Premium Payment Date but prior to 2 years from
the Premium Payment Date, to the extent that Deutsche then satisfies the
holding period and other requirements of Rule 144 under the Securities Act,
Counterparty shall promptly remove, or cause the transfer agent for such Shares
or Termination Delivery Units to remove, any legends referring to any such
restrictions or requirements from the certificates representing such Share or
Termination Delivery Units upon delivery by Deutsche to Counterparty or such
transfer agent of customary seller’s and broker’s representation letters in connection
with resales of such Shares or Termination Delivery Units 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 Deutsche.  Counterparty further agrees and acknowledges
that Deutsche shall run a holding period under Rule 144 under the Securities
Act with respect to the Warrants and/or any Shares or Termination Delivery
Units delivered hereunder notwithstanding the existence of any other
transaction or transactions between Counterparty and Deutsche relating to the
Shares.  Counterparty further agrees that
Shares or Termination Delivery Units delivered hereunder prior to the date that
is 1 year from the Premium Payment Date may be freely transferred by Deutsche
to its affiliates, and Counterparty shall effect such transfer without any
further action by Deutsche.  Notwithstanding
anything to the contrary herein, Counterparty agrees that any delivery of
Shares or Termination Delivery Units shall be effected by book-entry transfer
through the facilities of the Clearance System if, at the time of such
delivery, the certificates representing such Shares or Termination Delivery
Units would not contain any restrictive legend as described above.  Notwithstanding anything to the contrary
herein, to the extent the provisions of Rule 144 under the Securities Act or
any successor rule are amended, or the applicable interpretation thereof by the
Securities and Exchange Commission or any court changes after the Trade Date,
the agreements of Counterparty herein shall be deemed modified to the extent
necessary, in the opinion of outside counsel of Counterparty, to comply with
Rule 144 under the Securities Act, including Rule 144(k), as in effect at the
time of delivery of the relevant Shares or Termination Delivery Units.

 

No Material Non-Public
Information.  On each
day during the period beginning on the day on which the offering of the
Convertible Notes described in the Purchase Agreement was first announced and
ending on the Effective Date, Counterparty represents and warrants to
Deutsche that it is not aware of any material nonpublic information concerning
itself or the Shares.

 

Limit on Beneficial Ownership.  Notwithstanding any other provisions hereof,
Deutsche may not exercise any Warrant hereunder, Automatic Exercise shall not
apply with respect thereto, and no delivery hereunder (including pursuant to
provisions opposite the headings “Alternative
Calculations and Counterparty Payments on Early Termination and on Certain
Extraordinary Events,” “Registration/Private
Placement Procedures,”
“Limitation on Delivery of Shares”
or Annex A) shall be made, to the extent (but only to the extent) that the
receipt of any Shares upon such exercise or delivery would result in Deutsche
directly or indirectly beneficially owning (as such term is defined for
purposes of Section 13(d) of the Exchange Act) at any time in excess of 9.0% of
the outstanding Shares.  Any purported
delivery hereunder shall be void and have no effect to the extent (but only to
the extent) that such delivery would result in Deutsche directly or indirectly
so beneficially owning in excess of 9.0% of the outstanding Shares.  If any delivery owed to Deutsche or exercise
hereunder is not made, in whole or in part, as a result of this provision,
Counterparty’s obligation to make such delivery and Deutsche’s right to exercise
a Warrant shall not be extinguished and Counterparty shall make such delivery
as promptly as practicable after, but in no event later than one Clearance
System Business Day after, Deutsche gives notice to Counterparty that such
exercise or delivery would not result in Deutsche directly or indirectly so
beneficially owning in excess of 9.0% of the outstanding Shares.

 

Repurchase Notices.  On any day Counterparty effects any
repurchases of Shares, Counterparty shall promptly provide Deutsche with a
written notice of such repurchase (a “Repurchase Notice”)
if the Warrant Equity Percentage (as defined below) is (a) equal to or greater
than 6% and (b) greater by 0.5% than the Warrant Equity Percentage set forth in
the immediately preceding Repurchase Notice (or, in the case of the first such
Repurchase Notice, greater than the Warrant Equity Percentage as of the date
hereof).  The Warrant Equity Percentage
as of any day is the fraction of (1) the numerator of which is the Number of
Warrants, and (2) the denominator of which is the number of Shares outstanding
on such day.  Counterparty agrees to
indemnify and hold harmless Deutsche and its affiliates and their respective
officers, directors, employees, affiliates, advisors, agents and controlling
person (each, an “Indemnified Person”)
from and against any and all losses (including losses relating 

 11
 

 

 

to Deutsche’s hedging
activities as a consequence of becoming, or of the risk of becoming, an
“insider” as defined under Section 16 of the Exchange Act, including without
limitation, any forbearance from hedging activities or cessation of hedging
activities and any losses in connection therewith with respect to this
Transaction), claims, damages, judgments, liabilities and expense (including
reasonable attorney’s fees), joint or several, which an Indemnified Person
actually may become subject to, as a result of Counterparty’s failure to
provide Deutsche with a Repurchase Notice on the day and in the manner
specified herein, and to reimburse, upon written request, each of such
Indemnified Persons for any reasonable legal or other expenses incurred in
connection with investigating, preparing for, providing testimony or other
evidence in connection with or defending any of the foregoing.  If any suit, action, proceeding (including
any governmental or regulatory investigation), claim or demand shall be brought
or asserted against the Indemnified Person, such Indemnified Person shall
promptly notify Counterparty in writing, and Counterparty, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others
Counterparty may designate in such proceeding and shall pay the fees and
expenses of such counsel related to such proceeding.  Counterparty shall be relieved from liability
to the extent that the Indemnified Person fails promptly to notify Counterparty
of any action commenced against it in respect of which indemnity may be sought
hereunder; provided, that failure to notify
Counterparty (x) shall not relieve Counterparty from any liability hereunder to
the extent it is not materially prejudiced as a result thereof and
(y) shall not, in any event, relieve Counterparty from any liability that
it may have otherwise than on account of this indemnity agreement.  Counterparty shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff,
Counterparty agrees to indemnify any Indemnified Person from and against any loss
or liability by reason of such settlement or judgment.  Counterparty shall not, without the prior
written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnity could have been sought hereunder by such
Indemnified Person, unless such settlement includes an unconditional release of
such Indemnified Person from all liability on claims that are the subject
matter of such proceeding on terms reasonably satisfactory to such Indemnified
Person.  If the indemnification provided
for in this paragraph is unavailable to an Indemnified Person or insufficient
in respect of any losses, claims, damages or liabilities referred to therein,
then Counterparty, in lieu of indemnifying such Indemnified Person thereunder,
shall contribute to the amount paid or payable by such Indemnified Person as a
result of such losses, claims, damages or liabilities.  The remedies provided for in this paragraph are
not exclusive and shall not limit any rights or remedies that may otherwise be
available to any Indemnified Person at law or in equity.  The indemnity and contribution agreements
contained in this paragraph shall remain operative and in full force and effect
regardless of the termination of the Transaction.

 

Limitation On Delivery of Shares.  Notwithstanding anything herein or in the
Agreement to the contrary, in no event shall Counterparty be required to
deliver Shares in connection with the Transaction in excess of 6,646,664 Shares
(the “Maximum Delivery Amount”).  Counterparty represents and warrants (which
shall be deemed to be repeated on each day that the Transaction is outstanding)
that the Maximum Delivery Amount is equal to or less than the number of
authorized but unissued Shares of Counterparty 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 Maximum Delivery Amount
(such Shares, the “Available Shares”).  In the event Counterparty shall not have
delivered the full number of Shares otherwise deliverable as a result of this
paragraph (the resulting deficit, the “Deficit
Shares”), Counterparty 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 Counterparty 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 such date which prior to
the relevant date become no longer so reserved and (iii) Counterparty
additionally authorizes any unissued Shares that are not reserved for other
transactions.  Counterparty shall
immediately notify Deutsche of the occurrence of any 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.

 

Additional Termination
Event.  If Deutsche reasonably determines that it is
advisable to terminate a portion of the Transaction so that Deutsche’s related
hedging activities will comply with applicable securities laws, rules or
regulations, an Additional Termination Event shall occur in respect of which
(1) Counterparty shall be the sole Affected Party and (2) the Transaction shall
be the sole Affected Transaction.

 

 12
 

 

 

Transfer or Assignment.  Notwithstanding any provision of the
Agreement to the contrary, Deutsche may, subject to applicable law, freely
transfer and assign all of its rights and obligations under the Transaction
without the consent of Counterparty.

 

If, as determined in
Deutsche’s sole discretion, (x) its “beneficial ownership” (within the meaning
of Section 16 of the Exchange Act and rules promulgated thereunder) exceeds
8.5% of Counterparty’s outstanding Shares and (y) Deutsche is unable, after
commercially reasonable efforts, to effect a transfer or assignment on pricing
terms and within a time period reasonably acceptable to it of all or a portion
of the Transaction to reduce such “beneficial ownership” below 8.5%, Deutsche
may designate any Scheduled Trading Day as an Early Termination Date with
respect to a portion (the “Terminated Portion”)
of this Transaction, such that its “beneficial ownership” following such
partial termination will be approximately equal to but less than 8.5%.  In the event that Deutsche so designates an
Early Termination Date with respect to a portion of this Transaction, a payment
shall be made pursuant to Section 6 of the Agreement as if (i) an Early Termination
Date had been designated in respect of a Transaction having terms identical to
this Transaction and a Number of Warrants equal to the Terminated Portion
(allocated among the Components thereof in the discretion of Deutsche), (ii)
the Counterparty shall be the sole Affected Party with respect to such partial
termination and (iii) such Transaction shall be the only Terminated Transaction
(and, for the avoidance of doubt, the provisions set forth under the caption “Alternative Calculations and Counterparty Payment on Early Termination
and on Certain Extraordinary Events” shall apply to any amount that is payable by Counterparty to
Deutsche pursuant to this sentence).

 

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

 

Severability; Illegality.  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.

 

Waiver of Jury Trial.   EACH PARTY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE TRANSACTION.  EACH PARTY (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT,
ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II)
ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE
TRANSACTION, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS PROVIDED HEREIN.

 

Governing
law:             The law of the
State of New York.

Contact information.
For purposes of the Agreement (unless otherwise specified in the Agreement),
the addresses for notice to the parties shall be:

(a) Counterparty

United Therapeutics Corporation

1110 Spring St.

Silver Spring, MD 20910

Attention: John Ferrari, Chief Financial Officer

Fax:  (301) 608-3049

 13
 

 

 

(b)
Deutsche

Deutsche
Bank AG London

c/o Deutsche Bank Securities Inc. 

60 Wall Street 

New York, NY 10005

Attention: Documentation Department

 14
 

 

 

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 Deutsche a facsimile of the fully-executed
Confirmation to Deutsche at 44 113 336 2009. 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,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEUTSCHE BANK AG LONDON

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ LEE
  FRANKENFIELD

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ ANDREA
  LEUNG

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEUTSCHE BANK SECURITIES INC.,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  acting solely as Agent in connection with this
  Transaction

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ LEE
  FRANKENFIELD

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ ANDREA
  LEUNG

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UNITED THERAPEUTICS CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ JOHN
  FERRARI

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  John Ferrari

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  	
   

  

 

 15EXHIBIT 10.15

VITAL PRODUCTS, INC.
TRUST AGREEMENT

       On this 27th day of May, 2005 (the "Effective Date"), Vital Products,
Inc. (as Grantor) hereby transfers, conveys and assigns to Amy Trombly (as
the "Trustee") the shares of common stock of Vital Products, Inc., to be held
in trust for the Beneficiaries and upon the uses and purposes hereinafter set
forth.  The trust shall hereafter be known as THE VITAL PRODUCTS, INC. TRUST.

W I T N E S S E T H:

WHEREAS the Grantor is desirous of creating a trust for the purposes and upon
the terms hereinafter set forth;

WHEREAS the Grantor hereby transfers and delivers unto the Trustee 1,000,000
shares of Vital Products, Inc. common stock; and

WHEREAS the Trustee is willing to serve as trustee and hold and administer
such stock in trust, pursuant to the terms and conditions of this Agreement.

        NOW THEREFORE, the parties agree as follows:

ARTICLE 1
INTERPRETATION:

1.1. Definitions.  Whenever used in this Agreement, the following terms shall
     have the following respective meanings:

        (a) "Agreement" means this agreement and all amendments made hereto
             and thereto by written agreement between the parties;

        (b) "Beneficiaries" means the person or entities to receive the
             Distributions set forth in this Agreement;

        (c) "Distribution" means the distribution of the Trust Corpus to
             the Beneficiaries;

        (d) "Shares" shall mean all shares of common stock of Vital
             Products, Inc.;

        (e) "Stock Certificate" shall refer to the stock certificate
             evidencing the existence of the Vital Products, Inc. common stock.

        (f) "Trust" shall mean the Vital Products, Inc. Trust;

        (g) "Trust Corpus" shall mean the trust property which consists
             solely of the Shares to be described to the Beneficiaries under
             the terms of this Agreement

1.2. Entire Agreement.  This Agreement constitutes the entire agreement
     between the parties hereto pertaining to the Trust and supersedes all
     prior agreements, understandings, negotiations and discussions, whether
     oral or written, of the parties.  There are no warranties,
     representations and other agreements made by the parties in connection
     with the subject matter hereof except as set forth in this Agreement.

<PAGE>

1.3. Headings.  The division of this Agreement into articles, sections,
     subsections and paragraphs and the insertion of headings are for
     convenience of reference only and shall not affect the construction
     or interpretation of this Agreement.

1.4. Law Governing this Agreement.  This Agreement shall be governed by and
     construed in accordance with the laws of the Commonwealth of
     Massachusetts without regard to principles of conflicts of laws.

1.5. Arbitration of Disputes.  Any controversy, claim or dispute between the
     Grantor or Beneficiaries and the Trustee arising out of or related to
     this Agreement or the breach hereof, which cannot be resolved by mutual
     agreement, shall be submitted for binding arbitration in accordance with
     the provisions contained herein and in accordance with the commercial
     arbitration rules of the American Arbitration Association ("Rules");
     provided, however, that notwithstanding any provisions of such Rules,
     the parties shall have the right to take depositions and obtain
     discovery in accordance with the Civil Practice Law and Rules of the
     State of Massachusetts regarding the subject matter of the arbitration,
     and further provided that the arbitration shall not be consummated as
     an American Arbitration Association sanctioned arbitration except with
     the consent of all parties thereto.  Judgment of any arbitration award
     may be entered in any court having jurisdiction. The arbitrators shall
     determine all questions of fact and law relating to any controversy,
     claim or dispute hereunder, including but not limited to whether or
     not any such controversy, claim or dispute is subject to the arbitration
     provisions contained herein.

1.6. Commencement of Proceeding.  Any party desiring arbitration shall serve
     on the other party its notice of intent to arbitrate ("notice").  A single
     arbitrator shall be selected by the American Arbitration Association.
     The arbitration proceedings provided hereunder are hereby declared to be
     self-executing, and it shall not be necessary to petition a court to
     compel arbitration.

1.7. Cost of Arbitration.  If the arbitrators find decisively in favor of
     one of the parties, the losing party shall pay the entire cost of the
     arbitration, and also shall pay the prevailing party's reasonable
     attorneys' fees incurred in connection with the arbitration.  If the
     arbitrators instead settle the dispute by awarding each party a
     material part of what it was seeking, then the costs of arbitration
     shall be borne equally and each party shall bear its own attorneys'
     fees incurred in connection with the arbitration.

1.8. Location.  All arbitration proceedings shall be held in the State
     of Massachusetts.

1.9. Filing deadlines.  Notice of the demand for arbitration shall be filed
     in writing with the other party to this Agreement. The demand for
     arbitration shall be made within a reasonable time after the claim,
     dispute or other matter in question has arisen, and in no event shall
     it be made after the date when institution of legal or equitable
     proceedings based on such claim, dispute or other matter in question
     would be barred by the applicable statutes of limitations.

<PAGE>

ARTICLE 2
DELIVERY OF TRUST CORPUS
AND DISTRIBUTIONS TO BENEFICIARIES

2.1. Delivery of Trust Corpus.  On or before the Effective Date of this
     Agreement, the Grantor shall deliver the Stock Certificates of the
     Shares to the Trustee on or before the Effective Date of this
     Agreement.

2.2. Distribution of Trust Corpus to Beneficiaries.  Upon Vital Products,
     Inc. becoming effective, as designated by the Securities and Exchange
     Commission, and its Shares becoming free trading, the Trustee shall
     distribute the Shares to the Beneficiaries described in Article 3
     below.  Grantor is hereby responsible for any and all costs associated
     with such Distribution and shall reimburse Trustee for any costs
     incurred as related to the Distribution. The trust contemplated by
     this Agreement shall cease to exist upon the distribution of Shares
     to the Beneficiaries.  The Beneficiaries shall receive distributions
     consistent with their pro rata ownership of On the Go Healthcare, Inc.
     common stock as of the date the shares are traded on the over the
     counter bulletin board.

ARTICLE 3
TRUST BENEFICIARIES

The beneficiaries shall be the named shareholders of On the Go Healthcare,
Inc. as of the date the shares are traded on the over the counter bulletin
board

ARTICLE 4
TRUSTEE POWERS

4.1. Powers of the Trustee.  The Trustee shall have the following powers and
     rights:

        * to retain the assets of the trust;

        * to distribute assets of the trust as set forth in this Trust
          Agreement;

        * to deposit stock with any protective or other similar committee;

        * to appoint an ancillary trustee or agent to facilitate management
          of assets located in another state or foreign country;

        * Determine at any time that the corpus of the trust is insufficient
          to implement the intent of the trust, and upon this determination
          by the Trustee, terminate the trust by distribution of the trust
          to the current income beneficiary or beneficiaries of the trust or
          their legal representatives; and

        * To vote the shares at any annual or special meeting of shareholders.

<PAGE>

4.2. Limitations.  The powers and duties of the Trustee are subject to the
     following terms and conditions:

        (a) The Grantor acknowledges and agrees that the Trustee (i) shall be
            obligated only for the performance of such duties that are
            specifically assumed by the Trustee pursuant to this Agreement;
            (ii) may rely on and shall be protected in acting or refraining
            from acting upon any written notice, instruction, instrument,
            statement, request or document furnished to it hereunder and
            believed by the Trustee in good faith to be genuine and to have
            been signed or presented by the proper person or party, without
            being required to determine the authenticity or correctness of
            any fact stated therein or the validity or service thereof;
            (iii) may assume that any person believed by the Trustee in
            good faith to be authorized to give notice or make any statement
            or execute any document in connection with the provisions hereof
            is so authorized; (iv) shall not be under any duty to give the
            Trust Corpus held by the Trustee any greater degree of care than
            the Trustee gives its own similar property; and (v) may consult
            counsel satisfactory to the Trustee, the opinion of such counsel
            to be full and complete authorization and protection in respect
            of any action taken, suffered or omitted by the Trustee hereunder
            in good faith and in accordance with the opinion of such counsel.

        (b) The Grantor acknowledges that the Trustee is acting solely as
            Trustee at their request and that the Trustee shall not be liable
            for any action taken by Trustee in good faith and believed by the
            Trustee to be authorized or within the rights or powers conferred
            upon the Trustee by this Agreement.  The Grantor agrees to
            indemnify and hold harmless the Trustee and any of the Trustees
            partners, employees, agents and representatives for any action
            taken or omitted to be taken by the Trustee or any of them
            hereunder, including the fees of outside counsel and other costs
            and expenses of defending itself against any claim or liability
            under this Agreement, except in the case of gross negligence or
            willful misconduct on the Trustee's part committed in its capacity
            as trustee under this Agreement.  The Trustee shall own a duty
            only to the Grantor and Beneficiaries under this Agreement and
            to no other person.

        (c) The Grantor agrees to reimburse the Trustee for outside counsel
            fees, to the extent authorized hereunder and incurred in
            connection with the performance of its duties and
            responsibilities hereunder.

        (d) The Trustee may at any time resign as Trustee hereunder by giving
            five (5) days prior written notice of resignation to the Grantor.
            Prior to the effective date of resignation as specified in such
            notice, the Trustee will deliver the Stock Certificates to the
            Grantor.

        (e) This Agreement sets forth exclusively the duties of the Trustee
            with respect to any and all matters pertinent thereto and no
            implied duties or obligations shall be read into this
            Agreement.

        (f) The provisions of this 4.2. shall survive the resignation of
            the Trustee or the termination of this Agreement.

<PAGE>

ARTICLE 5
GENERAL MATTERS

5.1. Termination.  This Agreement shall terminate upon the distribution of
     the Trust Corpus to the Beneficiaries or the return of the Trust Corpus
     to the Grantor upon the Trustee's resignation or at any other time
     upon the agreement in writing of the Grantor and the Trustee.

5.2. Indemnification.  The Grantor hereby agrees to indemnify the Trustee
     for any claims, including those by third parties, losses, costs, fees,
     liabilities or damages incurred by Trustee arising out of Trustees
     administration of her duties under this Agreement and/or Grantor's
     breach of this Agreement.

5.3. Trustee Fee.  In consideration for her services as Trustee as set
     forth in this Agreement, Grantor shall pay Trustee a fee of $1,000
     upon distribution of the shares.

5.4. Notices.  All notices, demands, requests, consents, approvals and other
     communications required or permitted hereunder shall be in writing and,
     unless otherwise specified herein, shall be (i) personally served,
     (ii) deposited in the mail, registered or certified, return receipt
     requested, postage prepaid, (iii) delivered by reputable air courier
     services with charges prepaid, or (iv) transmitted by hand deliver,
     telegram, or facsimile, addressed as set forth below or to such other
     address as such party shall have specified most recently by written
     notice.  Any notice or other communication required or permitted to be
     given hereunder shall be deemed effective (a) upon hand delivery or
     delivery by facsimile, with accurate confirmation generated by the
     transmitting facsimile machine, at the address or number designated
     below (if delivered on a business day during normal business hours
     where such notice is to be received), or the first business day
     following such delivery (if delivered other than on a business day
     during normal business hours where such notice is to be received) or
     (b) on the second business day following the date of mailing by
     express courier service, fully prepaid, addressed to such address,
     or upon actual receipt of such mailing, whichever shall first occur.
     The addresses for such communications shall be:

        (a) If to the Grantor, to:

        Vital Products, Inc.
        Attention:  Michael Levine
        35 Adesso Road
        Concord, Ontario
        Canada L4K 3C7
        Phone: (416) 650-5711
        Fax: (905) 660-3008

        (b) If to the Trustee, to:

        Amy Trombly, Esq.
        Trombly Business Law
        1320 Centre Street, Suite 202
        Newton Centre, MA 02459
        Phone: (617) 243-0066
        Facsimile: (617) 243-0060

        Or to such other address as either party shall give to the other
        by notice made pursuant to this section 5.2.

<PAGE>

5.5. Assignment; Binding Agreement.  Neither this Agreement nor any right
     or obligation hereunder shall be assignable by any party without the
     prior written consent of the other parties hereto.  This Agreement shall
     enure to the benefit of and be binding upon the parties hereto and their
     respective legal representatives, successors and assigns.

5.6. Invalidity.  In the event that any one or more of the provisions
     contained herein, or the application thereof in any circumstance, is
     held invalid, illegal, or unenforceable in any respect for any reason,
     the validity, legality and enforceability of any such provision in every
     other respect and of the remaining provisions contained herein shall
     not be in any way impaired thereby, it being intended that all of the
     rights and privileges of the parties hereto shall be enforceable to the
     fullest extent permitted by law.

5.7. Counterparts/Execution.  This Agreement may be executed in any number
     of counterparts and by different signatories hereto on separate
     counterparts, each of which, when so executed, shall be deemed an
     original, but all such counterparts shall constitute but one and the
     same instrument.  This Agreement may be executed by facsimile
     transmission and delivered by facsimile transmission.

5.8. Agreement.  Each of the undersigned states that he or she has read the
     foregoing Vital Products, Inc. Trust Agreement and understands and
     agrees to it.

                                                "GRANTOR"

                                                Vital Products, Inc.

                                                /s/ Michael Levine
                                                -------------------
                                                By: Michael Levine

                                                May 27th, 2005

                                                "TRUSTEE"

                                                /s/ Amy M. Trombly
                                                -------------------
                                                Amy M. Trombly

                                                May 27th, 2005

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]