Document:

Exhibit
4.3

 

RESALE
REGISTRATION RIGHTS AGREEMENT

 

This Resale
Registration Rights Agreement (the "Agreement") is
made as of October 9, 2003 by and among NEKTAR
THERAPEUTICS, a Delaware corporation (together with any successor
entity, herein referred to as the "Issuer") and the persons or entities
listed on the signature pages hereto (the "Holders" and each individually as a
"Holder").

 

RECITALS

 

WHEREAS, each Holder has agreed to acquire
from the Issuer 3% Convertible Subordinated Notes due 2010 (the "Notes");

 

WHEREAS, the Notes will be convertible into
fully paid, nonassessable common stock, par value $0.0001 per share, of the
Issuer (the "Common
Stock") on the terms, and subject to the conditions, set
forth in the Indenture (as defined herein); and

 

WHEREAS, to induce each Holder to acquire
the Notes, the Issuer has agreed to provide the registration rights set forth
in this Agreement.

 

AGREEMENT

 

The
parties hereby agree as follows:

 

1.                                       Definitions.  As used in
this Agreement, the following capitalized terms shall have the following
meanings:

 

Advice:  As defined in Section 4(c)(ii) hereof.

 

Agreement:  As defined in the preamble hereto.

 

Blue Sky Application:  As defined in Section 6(a)(i) hereof.

 

Broker-Dealer:  Any broker or dealer registered under the
Exchange Act.

 

Business Day:  A day other than a Saturday or Sunday or any
federal holiday in the United States.

 

Closing Date:  The date of this Agreement.

 

Commission:  Securities and Exchange Commission.

 

Common Stock:  As defined in the preamble hereto.

 

Damages Payment Date: 
Each Interest Payment Date.  For purposes of this Agreement, if no Notes are outstanding,
"Damages Payment Date" shall mean each June 30 and
December 30.

 

Effectiveness Period:  As defined in Section 2(a)(iii) hereof.

 

 

Effectiveness Target Date:  As defined in Section 2(a)(ii) hereof.

 

Exchange Act:  Securities Exchange Act of 1934, as amended.

 

Holder:  As defined in the initial paragraph of this
Agreement.

 

Indemnified Holder:  As defined in Section 6(a) hereof.

 

Indenture:  The Indenture, dated as of the date
herewith, by and between the Issuer and J.P. Morgan Trust Company, National
Association, as trustee (the "Trustee"), pursuant to which the Notes
are to be issued, as such Indenture is amended, modified or supplemented from
time to time in accordance with the terms thereof.

 

Interest Payment Date: 
As defined in the Indenture.

 

Issuer:  As defined in the preamble hereto.

 

Liquidated Damages:  As
defined in Section 3(a) hereof.

 

Majority of Holders:  Holders holding over 50% of the aggregate
principal amount of Notes outstanding; provided
that, for purpose of this definition, a holder of shares of Common
Stock which constitute Transfer Restricted Securities and were issued upon
conversion of the Notes shall be deemed to hold an aggregate principal amount
of Notes (in addition to the aggregate principal amount of Notes held by such
holder) equal to the aggregate principal amount of Notes converted by such
Holder into such shares of Common Stock.

 

Notes:  As defined in the preamble hereto.

 

Person:  An individual, partnership, corporation,
unincorporated organization, trust, joint venture or a government or agency or
political subdivision thereof.

 

Prospectus:  The prospectus included in a Shelf
Registration Statement, as amended or supplemented by any prospectus supplement
and by all other amendments thereto, including post-effective amendments, and
all material incorporated by reference into such Prospectus.

 

Questionnaire Deadline:  As defined in Section 2(b) hereof.

 

Record Holder:  With respect to any Damages Payment Date,
each Person who is a Holder on the record date with respect to the Interest
Payment Date on which such Damages Payment Date shall occur.  In the case of a Holder of shares of Common
Stock issued upon conversion of the Notes, "Record Holder" shall mean
each Person who is a Holder of shares of Common Stock which constitute Transfer
Restricted Securities on the June 15 or December 15 immediately
preceding the Damages Payment Date.

 

Registration Default: 
As defined in Section 3(a) hereof.

 

Sale Notice:  As defined in Section 4(e) hereof.

 

Securities Act:  Securities Act of 1933, as amended.

 

2

 

Shelf Filing Deadline:
As defined in Section 2(a)(i) hereof.

 

Shelf Registration Statement:  As defined in Section 2(a)(i) hereof.

 

Suspension Period.  As defined in Section 4(b)(i) hereof.

 

Transfer Restricted Securities:  Each Note and each share of Common Stock
issued upon conversion of Notes until the earlier of:

 

(i)                                     the
date on which such Note or such share of Common Stock issued upon conversion
has been effectively registered under the Securities Act and disposed of in
accordance with the Shelf Registration Statement;

 

(ii)                                  the
date on which such Note or such share of Common Stock issued upon conversion
(y) is transferred in compliance with Rule 144 under the Securities Act,  or (z) may be sold or transferred pursuant
to Rule 144(k) under the Securities Act (or any other similar provision then in
force); provided, that with
respect to the condition set forth in (z) above, the Issuer shall have notified
the Holder of its willingness to remove the restricted securities legends
placed on such securities as required by the terms of the Indenture upon the
request of the Holder; or

 

(iii)                               the date on which such
Note or such share of Common Stock issued upon conversion ceases to be
outstanding (whether as a result of redemption, repurchase and cancellation,
conversion or otherwise).

 

Underwritten Registration or
Underwritten Offering: 
A registration in which securities of the Issuer are sold to an
underwriter for reoffering to the public.

 

2.                                       Shelf
Registration.

 

(a)                                  The
Issuer shall:

 

(i)                                     not
later than 45 days after the date hereof (the "Shelf Filing Deadline"),
cause to be filed a registration statement pursuant to Rule 415 under the
Securities Act (the "Shelf
Registration Statement"), which Shelf Registration
Statement shall provide for resales of all Transfer Restricted Securities held
by Holders that have provided the information required pursuant to the terms of
Section 2(b) hereof;

 

(ii)                                  use
commercially reasonable efforts  to cause the Shelf Registration Statement
to be declared effective by the Commission as promptly as reasonably
practicable thereafter (the "Effectiveness Target Date"); and

 

(iii)                               use
commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective, supplemented and amended as required by the provisions
of Section 4(b) hereof to the extent necessary to ensure that (A) it is
available for resales by the Holders of Transfer Restricted Securities entitled
to the benefit of this Agreement and (B) conforms with the requirements of this
Agreement and the Securities 

 

3

 

Act and the
rules and regulations of the Commission promulgated thereunder as announced
from time to time for a period (the "Effectiveness Period") of:

 

(A)                              two
(2) years after the date hereof; provided,
that such period shall be extended to the extent the Issuer shall not have
notified the Holder of its willingness to remove the restricted securities
legends placed on such securities as required by the terms of the Indenture
upon the request of the Holder; or

 

(B)                                such
shorter period that will terminate when (w) all of the Holders of Transfer
Restricted Securities are able to sell all Transfer Restricted Securities
immediately without restriction pursuant to Rule 144(k) under the Securities
Act or any successor rule thereto; provided,
that the Issuer shall have notified the Holder of its willingness to remove the
restricted securities legends placed on such securities as required by the
terms of the Indenture upon the request of the Holders, (x) when all Transfer
Restricted Securities have ceased to be outstanding (whether as a result of
redemption, repurchase and cancellation, conversion or otherwise),  (y) all Transfer Restricted Securities
registered under the Shelf Registration Statement have been sold or (z) all
Notes and Conversion Shares cease to be Transfer Restricted Securities.

 

(b)                                 No
Holder of Transfer Restricted Securities may include any of its Transfer
Restricted Securities in the Shelf Registration Statement pursuant to this
Agreement unless such Holder furnishes to the Issuer in writing, prior to or on
the 15th day after becoming a party to this Agreement (the "Questionnaire Deadline"),
a complete and accurate questionnaire in substantially the form of Exhibit A
hereto and such other information as the Issuer may reasonably request for use
in connection with the Shelf Registration Statement or the Prospectus or
preliminary Prospectus included therein and in any application to be filed with
or under state securities laws.  Each
Holder as to which the Shelf Registration Statement is being effected agrees to
furnish promptly to the Issuer all information required to be disclosed in
order to make information previously furnished to the Issuer by such Holder not
materially misleading.

 

3.                                       Liquidated Damages.

 

(a)                                  If:

 

(i)                                     the
Shelf Registration Statement has not been declared effective by the Commission
prior to or on the date 210 days after the date of this Agreement;

 

(ii)                                  subject
to the provisions of Section 4(b)(i) hereof, the Shelf Registration
Statement is filed and declared effective but, during the Effectiveness Period,
shall thereafter cease to be effective or fail to be usable for its intended
purpose without being succeeded within five Business Days by the filing of a
post-effective amendment to the Shelf Registration Statement or a report filed
with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Exchange Act that, upon effectiveness, cures such failure; or

 

(iii)                               prior
to or on the 45th, 60th or 90th day, as the
case may be, of any Suspension Period, such suspension has not been terminated,

 

4

 

(each such event referred to in foregoing clauses (i)
through (iii), a "Registration Default"), the Issuer hereby agrees to
pay additional interest as liquidated damages ("Liquidated Damages")
with respect to the Transfer Restricted Securities from and including the day
following the Registration Default to but excluding the day on which the
Registration Default has been cured:

 

(A)                              in
respect of the Notes, to each holder of Notes, (x) with respect to the first
90-day period during which a Registration Default shall have occurred and be
continuing, in an amount per year equal to an additional 0.25% of the principal
amount of the Notes, and (y) with respect to the period commencing on the 91st
day following the day the Registration Default shall have occurred and be
continuing, in an amount per year equal to an additional 0.50% of the principal
amount of the Notes; provided that in no event shall Liquidated Damages accrue
at a rate per year exceeding 0.50% of the principal amount of the Notes; and

 

(B)                                in
respect of any shares of Common Stock, to each holder of shares of Common Stock
issued upon conversion of Notes, (x) with respect to the first 90-day period
during which a Registration Default shall have occurred and be continuing, in
an amount per year equal to 0.25% of the principal amount of the converted
Notes, and (y) with respect to the period commencing the 91st day following the
day the Registration Default shall have occurred and be continuing, in an
amount per year equal to 0.50% of the principal amount of the converted Notes;
provided that in no event shall Liquidated Damages accrue at a rate per year
exceeding 0.50% of the principal amount of the converted Notes.

 

(c)                                  All
accrued Liquidated Damages shall be paid in arrears to Record Holders by the
Issuer on each Damages Payment Date by wire transfer of immediately available
funds or by federal funds check. 
Following the cure of all Registration Defaults relating to any
particular Note or share of Common Stock, the accrual of Liquidated Damages
with respect to such Note or share of Common Stock will cease.  All obligations of the Issuer set forth in
this Section 3 that are outstanding with respect to any Transfer
Restricted Security at the time such security ceases to be a Transfer
Restricted Security shall survive until such time as all such obligations with
respect to such Transfer Restricted Security shall have been satisfied in full.

 

(d)                                 The
Liquidated Damages set forth above shall be the exclusive monetary remedy
available to the Holders of Transfer Restricted Securities for such
Registration Default.

 

4.                                       Registration
Procedures.

 

(a)                                  In
connection with the Shelf Registration Statement, the Issuer shall comply with
all the provisions of Section 4(b) hereof and shall use commercially
reasonable efforts to effect such registration to permit the sale of the
Transfer Restricted Securities being sold in accordance with the intended
method or methods of distribution thereof, and pursuant thereto, shall as
expeditiously as possible prepare and file with the Commission a Shelf
Registration Statement relating to the registration on any appropriate form
under the Securities Act.

 

(b)                                 In
connection with the Shelf Registration Statement and any Prospectus required by
this Agreement to permit the sale or resale of Transfer Restricted Securities,
the Issuer shall:

 

5

 

(i)                                     Subject
to any notice by the Issuer in accordance with this Section 4(b) of the existence
of any fact or event of the kind described in Section 4(b)(iii)(D), use
commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective during the Effectiveness Period; upon the occurrence of
any event that would cause the Shelf Registration Statement or the Prospectus
contained therein (A) to contain a material misstatement or omission or (B) not
be effective and usable for resale of Transfer Restricted Securities during the
Effectiveness Period, the Issuer shall file promptly an appropriate amendment
to the Shelf Registration Statement or a report filed with the Commission
pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, in the
case of clause (A), correcting any such misstatement or omission, and, in the
case of either clause (A) or (B), use commercially reasonable efforts to cause
such amendment to be declared effective and the Shelf Registration Statement
and the related Prospectus to become usable for their intended purposes as soon
as practicable thereafter. 
Notwithstanding the foregoing, the Issuer may suspend the effectiveness
of the Shelf Registration Statement by written notice to the Holders:

 

(x)                                   for
a period (each such period, a "Suspension Period")  not to exceed an aggregate of 45 days in any
90-day if (A) an event occurs and is continuing as a result of which the Shelf
Registration Statement would, in the Issuer's reasonable judgment, contain an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not
misleading; and (B) the Issuer reasonably determines that the disclosure of
such event at such time would have a material adverse effect on the business of
the Issuer (and its subsidiaries, if any, taken as a whole); provided that
in the event the disclosure relates to a previously undisclosed proposed or
pending material business transaction, the disclosure of which would impede the
Issuer's ability to consummate such transaction, the Issuer may extend a
Suspension Period from 45 days to 60 days; provided,
however, that Suspension Periods shall not exceed an aggregate of 90
days in any 360-day period; or

 

(y)                                 upon
the filing of any post-effective amendment required to be filed by the Issuer
pursuant to the Issuer's obligations under Section 4(b)(iv) until such
time as such post-effective amendment is declared effective.

 

(ii)                                  Prepare
and file with the Commission such amendments and post-effective amendments to
the Shelf Registration Statement as may be necessary to keep the Shelf
Registration Statement effective during the Effectiveness Period; cause the
Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Securities Act, and to
comply fully with the applicable provisions of Rules 424 and 430A under the
Securities Act in a timely manner; and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by the
Shelf Registration Statement during the applicable period in accordance with
the intended method or methods of distribution by the sellers thereof set forth
in the Shelf Registration Statement or supplement to the Prospectus.

 

(iii)                               Advise
the selling Holders promptly (but in any event within five (5) Business Days)
and, if requested by any Holder, to confirm such advice in writing:

 

6

 

(A)                              when
the Prospectus or any Prospectus supplement or post-effective amendment has
been filed, and, with respect to the Shelf Registration Statement or any
post-effective amendment thereto, when the same has become effective,

 

(B)                                of
any request by the Commission for amendments to the Shelf Registration
Statement or amendments or supplements to the Prospectus or for additional
information relating thereto,

 

(C)                                of
the issuance by the Commission of any stop order suspending the effectiveness
of the Shelf Registration Statement under the Securities Act or of the
suspension by any state securities commission of the qualification of the
Transfer Restricted Securities for offering or sale in any jurisdiction, or the
initiation of any proceeding for any of the preceding purposes, or

 

(D)                               of
the existence of any fact or the happening of any event, during the
Effectiveness Period, that makes any statement of a material fact made in the
Shelf Registration Statement, the Prospectus, any amendment or supplement
thereto, or any document incorporated by reference therein untrue, or that
requires the making of any additions to or changes in the Shelf Registration
Statement or the Prospectus in order to make the statements therein not
misleading.

 

If at any time the Commission shall issue any stop
order suspending the effectiveness of the Shelf Registration Statement, or any
state securities commission or other regulatory authority shall issue an order
suspending the qualification or exemption from qualification of the Transfer
Restricted Securities under state securities or Blue Sky laws, the Issuer shall
use commercially reasonable efforts to obtain the withdrawal or lifting of such
order at the earliest possible time.

 

(iv)                              If
requested by any selling Holders, promptly incorporate in the Shelf
Registration Statement or Prospectus, pursuant to a supplement or post-effective
amendment if necessary, such information as such selling Holders, if any, may
reasonably request to have included therein, including, without limitation: (1)
information relating to the "Plan of Distribution" of the Transfer
Restricted Securities, or (2) any other terms of the offering of the Transfer
Restricted Securities to be sold in such offering; and make all required
filings of such Prospectus supplement or post-effective amendment as soon as
reasonably practicable after the Issuer is notified of the matters to be
incorporated in such Prospectus supplement or post-effective amendment.  Notwithstanding the foregoing, following the
effective date of the Shelf Registration Statement, the Issuer shall not be
required to file at the request of the Holders more than one such supplement or
post-effective amendment to reflect (x) changes in the amount of Notes held by
or the identity of any Holder, or (y) the addition of any Holder, in any 30-day
period.

 

(v)                                 Make
available to each selling Holder, without charge, at least one copy of the
Shelf Registration Statement, as first filed with the Commission, and of each
amendment thereto (and any documents incorporated by reference therein or
exhibits

 

7

 

thereto (or
exhibits incorporated in such exhibits by reference) as such Person may
request).

 

(vi)                              Make
available to each selling Holder, without charge, as many copies of the
Prospectus (including each preliminary prospectus) and any amendment or
supplement thereto as such Holders reasonably may request; subject to any
notice by the Issuer in accordance with this Section 4(b) of the existence
of any fact or event of the kind described in Section 4(b)(iii)(D), the
Issuer hereby consents to the use of the Prospectus and any amendment or
supplement thereto by each of the selling Holders and each of the
underwriter(s), if any, in connection with the offering and the sale of the
Transfer Restricted Securities covered by the Prospectus or any amendment or
supplement thereto.

 

(vii)                           Cooperate
with the selling Holders in connection with the registration and qualification
of the Transfer Restricted Securities under the securities or Blue Sky laws of
such jurisdictions as the selling Holders may reasonably request and do any and
all other acts or things necessary or advisable to enable the disposition in
such jurisdictions of the Transfer Restricted Securities covered by the Shelf
Registration Statement; provided, however,
that the Issuer shall not be required (A) to register or qualify as a foreign
corporation or a dealer of securities where it is not now so qualified or to
take any action that would subject it to the service of process in any
jurisdiction where it is not now so subject or (B) to subject themselves to taxation
in any such jurisdiction if they are not now so subject.

 

(viii)                        Cooperate
with the selling Holders to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not
bearing any restrictive legends (unless required by applicable securities
laws); and enable such Transfer Restricted Securities to be in such
denominations and registered in such names as the Holders may request at least
two (2) Business Days before any sale of Transfer Restricted Securities made by
such underwriter(s).

 

(ix)                                Use
commercially reasonable efforts to cause the Transfer Restricted Securities
covered by the Shelf Registration Statement to be registered with or approved
by such other U.S. governmental agencies or authorities as may be necessary to
enable the Holders to consummate the disposition of such Transfer Restricted
Securities.

 

(x)                                   Subject
to Section 4(b)(i) hereof, if any fact or event contemplated by
Section 4(b)(iii)(D) hereof shall exist or have occurred, use commercially
reasonable efforts to prepare a supplement or post-effective amendment to the
Shelf Registration Statement or related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of Transfer Restricted Securities, the Prospectus
will not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading.

 

(xi)                                Provide
CUSIP numbers for all Transfer Restricted Securities not later than the
effective date of the Shelf Registration Statement and provide the Trustee
under 

 

8

 

the Indenture with
certificates for the Notes that are in a form eligible for deposit with The
Depository Trust Company.

 

(xii)                             Otherwise
use commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission and all reporting requirements under the rules and
regulations of the Exchange Act.

 

(xiii)                          Cause
all Transfer Restricted Securities covered by the Shelf Registration Statement
to be listed or quoted, as the case may be, on each securities exchange or
automated quotation system on which similar securities issued by the Issuer are
then listed or quoted.

 

(c)                                  Each
Holder agrees by acquisition of a Transfer Restricted Security that, upon
receipt of any notice from the Issuer of the existence of any fact of the kind
described in Section 4(b)(iii)(D) hereof, such Holder will, and will use
its reasonable best efforts to cause any underwriter(s) in an Underwritten
Offering to, forthwith discontinue disposition of Transfer Restricted
Securities pursuant to the Shelf Registration Statement until:

 

(i)                                     such
Holder has received copies of the supplemented or amended Prospectus
contemplated by Section 4(b)(x) hereof; or

 

(ii)                                  such
Holder is advised in writing (the "Advice") by the Issuer that the use of
the Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus.

 

If so directed by the Issuer, each Holder will deliver
to the Issuer all copies, other than permanent file copies then in such
Holder's possession, of the Prospectus covering such Transfer Restricted
Securities that was current at the time of receipt of such notice of
suspension.

 

(d)                                 Each
Holder who intends to be named as a selling Holder in the Shelf Registration
Statement shall furnish to the Issuer in writing, within 15 days after becoming
a party hereto, a complete and accurate questionnaire in substantially the form
set forth as Exhibit A hereto and such other information regarding such Holder
and the proposed distribution by such Holder of its Transfer Restricted Securities
as the Issuer may reasonably request for use in connection with the Shelf
Registration Statement or Prospectus or preliminary Prospectus included
therein.  Holders that do not complete
the questionnaire and deliver it to the Issuer on or prior to the Questionnaire
Deadline shall not be named as selling securityholders in the Prospectus or
preliminary Prospectus included in the Shelf Registration Statement and
therefore shall not be permitted to sell any Transfer Restricted Securities
pursuant to the Shelf Registration Statement. 
Each Holder who intends to be named as a selling Holder in the Shelf
Registration Statement shall promptly furnish to the Issuer in writing such
other information as the Issuer may from time to time reasonably request in writing.

 

(e)                                  Upon
the effectiveness of the Shelf Registration Statement, each Holder shall notify
the Issuer at least three (3) Business Days prior to any intended distribution
of Transfer Restricted Securities pursuant to the Shelf Registration Statement
(a "Sale Notice"),
which notice shall be effective for five (5) Business Days.  Each Holder of this Security, by accepting
the same, agrees to hold any communication by the Issuer in response to a Sale
Notice in 

 

9

 

confidence.  Upon any transfer of Transfer Restricted
Securities pursuant to the Shelf Registration Statement, each Holder shall
comply with all such Holder's obligations relating to delivery of the
Prospectus under applicable securities laws. 
The Issuer and its representatives shall be entitled to rely on the
foregoing covenant as evidence of compliance with such obligations by such
Holder in connection with (i) any instruction requested of it in
connection with such transfer by the Trustee of the Notes or the transfer agent
of the Common Stock or (ii) any representation made by the Issuer or such
representative to any governing authority, including, the Commission or NASD.

 

5.                                       Registration
Expenses.  All expenses incident to the Issuer's performance
of or compliance with this Agreement shall be borne by the Issuer regardless of
whether a Shelf Registration Statement becomes effective, which shall include:

 

(a)                                  all
registration and filing fees and expenses (including filings made by any
Holders with the NASD);

 

(b)                                 all
fees and expenses of compliance with federal securities and state Blue Sky or
securities laws;

 

(c)                                  all
expenses of printing (including printing of Prospectuses and certificates for
the Common Stock to be issued upon conversion of the Notes), messenger and
delivery services and telephone charges;

 

(d)                                 all
fees and disbursements of counsel to the Issuer;

 

(e)                                  all
application and filing fees in connection with listing (or authorizing for
quotation) the Common Stock on a national securities exchange or automated
quotation system pursuant to the requirements hereof; and

 

(f)                                    all
fees and disbursements of independent certified public accountants of the
Issuer (including the expenses of any special audit and comfort letters
required by or incident to such performance).

 

The
Issuer shall bear its internal expenses (including, without limitation, all
salaries and expenses of their officers and employees performing legal,
accounting or other duties), the expenses of any annual audit and the fees and
expenses of any Person, including special experts, retained by the Issuer.

 

6.                                       Indemnification
and Contribution.

 

(a)                                  The
Issuer shall indemnify and hold harmless each Holder, such Holder's officers
and employees and each person, if any, who controls such Holder within the
meaning of the Securities Act (each, an "Indemnified Holder"), from and
against any loss, claim, damage or liability, joint or several, or any action
in respect thereof (including, but not limited to, any loss, claim, damage,
liability or action relating to resales of the Transfer Restricted Securities),
to which such Indemnified Holder may become subject, insofar as any such loss,
claim, damage, liability or action arises out of, or is based upon:

 

10

 

(i)                                     any
untrue statement or alleged untrue statement of a material fact contained in
(A) the Shelf Registration Statement or Prospectus or any amendment or
supplement thereto or (B) any blue sky application or other document or any
amendment or supplement thereto prepared or executed by the Issuer (or based
upon written information furnished by or on behalf of the Issuer expressly for
use in such blue sky application or other document or amendment on supplement)
filed in any jurisdiction specifically for the purpose of qualifying any or all
of the Transfer Restricted Securities under the securities law of any state or
other jurisdiction (such application or document being hereinafter called a
"Blue Sky
Application"); or

 

(ii)                                  the
omission or alleged omission to state therein any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading,

 

and shall reimburse each Indemnified Holder promptly
upon demand for any legal or other expenses reasonably incurred by such
Indemnified Holder in connection with investigating or defending or preparing
to defend against any such loss, claim, damage, liability or action as such
expenses are incurred; provided, however,
that the Issuer shall not be liable in any such case to the extent that any
such loss, claim, damage, liability or action arises out of, or is based upon,
any untrue statement or alleged untrue statement or omission or alleged
omission made in the Shelf Registration Statement or Prospectus or amendment or
supplement thereto or Blue Sky Application in reliance upon and in conformity
with written information furnished to the Issuer by or on behalf of any Holder
(or its related Indemnified Holder) specifically for use therein.  The foregoing indemnity agreement is in
addition to any liability which the Issuer may otherwise have to any
Indemnified Holder.

 

(b)                                 Each
Holder, severally and not jointly, shall indemnify and hold harmless the
Issuer, its officers and employees and each person, if any, who controls the
Issuer within the meaning of the Securities Act, from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof,
to which the Issuer or any such officer, employee or controlling person may
become subject, insofar as any such loss, claim, damage or liability or action
arises out of, or is based upon:

 

(i)                                     any
untrue statement or alleged untrue statement of any material fact contained in
the Shelf Registration Statement or Prospectus or any amendment or supplement
thereto or any Blue Sky Application; or

 

(ii)                                  the
omission or the alleged omission to state therein any material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading,

 

but in each case only to the extent that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information furnished to the
Issuer by or on behalf of such Holder (or its related Indemnified Holder)
specifically for use therein, and shall reimburse the Issuer and any such
officer, employee or controlling person promptly upon demand for any legal or
other expenses reasonably incurred by the Issuer or any such officer, employee
or controlling person in 

 

11

 

connection with investigating or defending or
preparing to defend against any such loss, claim, damage, liability or action
as such expenses are incurred.  The
foregoing indemnity agreement is in addition to any liability which any Holder
may otherwise have to the Issuer and any such officer, employee or controlling
person.

 

(c)                                  Promptly
after receipt by an indemnified party under this Section 6 of notice of
any claim or the commencement of any action, the indemnified party shall, if a
claim in respect thereof is to be made against the indemnifying party under
this Section 6, notify the indemnifying party in writing of the claim or
the commencement of that action; provided,
however, that the failure to notify the indemnifying party shall not
relieve it from any liability which it may have under this Section 6
except to the extent it has been materially prejudiced by such failure and, provided, further, that the failure to
notify the indemnifying party shall not relieve it from any liability which it
may have to an indemnified party otherwise than under this Section 6.  If any such claim or action shall be brought
against an indemnified party, and it shall notify the indemnifying party
thereof, the indemnifying party shall be entitled to participate therein and,
to the extent that it wishes, jointly with any other similarly notified
indemnifying party, to assume the defense thereof with counsel satisfactory to
the indemnified party.  After notice
from the indemnifying party to the indemnified party of its election to assume
the defense of such claim or action, the indemnifying party shall not be liable
to the indemnified party under this Section 6 for any legal or other
expenses subsequently incurred by the indemnified party in connection with the
defense thereof other than reasonable costs of investigation; provided, however, that a Majority of
Holders shall have the right to employ a single counsel to represent jointly a
Majority of Holders and their respective officers, employees and controlling
persons who may be subject to liability arising out of any claim in respect of
which indemnity may be sought by a Majority of Holders against the Issuer under
this Section 6, if a Majority of Holders shall have reasonably concluded
that there may be one or more legal defenses available to them and their
respective officers, employees and controlling persons that are different from
or additional to those available to the Issuer and its officers, employees and
controlling persons, the fees and expenses of a single separate counsel shall
be paid by the Issuer.  No indemnifying
party shall:

 

(i)                                     without
the prior written consent of the indemnified parties (which consent shall not
be unreasonably withheld) settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
(1) includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding and
(2) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party, or

 

(ii)                                  be
liable for any settlement of any such action effected without its written
consent (which consent shall not be unreasonably withheld), but if settled with
its written consent or if there be a final judgment for the plaintiff in any
such action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss of liability by reason of such
settlement or judgment.

 

12

 

(d)                                 If
the indemnification provided for in this Section 6 shall for any reason be
unavailable or insufficient to hold harmless an indemnified party under
Section 6(a) or 6(b) in respect of any loss, claim, damage or liability
(or action in respect thereof) referred to therein, each indemnifying party
shall, in lieu of indemnifying such indemnified party, contribute to the amount
paid or payable by such indemnified party as a result of such loss, claim,
damage or liability (or action in respect thereof):

 

(i)                                     in
such proportion as is appropriate to reflect the relative benefits received by
the Issuer from the offering and sale of the Transfer Restricted Securities on
the one hand and a Holder with respect to the sale by such Holder of the
Transfer Restricted Securities on the other, or

 

(ii)                                  if
the allocation provided by clause (6)(d)(i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause 6(d)(i) but also the relative fault of the Issuer on the
one hand and the Holders on the other in connection with the statements or
omissions or alleged statements or alleged omissions that resulted in such
loss, claim, damage or liability (or action in respect thereof), as well as any
other relevant equitable considerations.

 

The
relative benefits received by the Issuer on the one hand and a Holder on the
other with respect to such offering and such sale shall be deemed to be in the
same proportion as the total net proceeds from the offering of the Notes
(before deducting expenses) received by the Issuer, on the one hand, bear to
the total proceeds received by such Holder with respect to its sale if Transfer
Restricted Securities on the other.

 

The
relative fault of the parties shall be determined by reference to whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Issuer on the one hand or the Holders on the other, the intent of the
parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission.

 

The
Issuer and each Holder agree that it would not be just and equitable if the
amount of contribution pursuant to this Section 6(d) were determined by
pro rata allocation or by any other method of allocation that does not take
into account the equitable considerations referred to in the first sentence of
this paragraph (d).  The amount paid or
payable by an indemnified party as a result of the loss, claim, damage or liability,
or action in respect thereof, referred to above in this Section 6 shall be
deemed to include, for purposes of this Section 6, any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating, or defending or preparing to defend any such litigation, investigation
or proceeding by any governmental agency or body, or commenced or threatened
action or claim.  Notwithstanding the
provisions of this Section 6, no Holder shall be required to contribute
any amount in excess of the amount by which the total price at which the
Transfer Restricted Securities purchased by it were resold exceeds the amount
of any damages which such Holder has otherwise been required to pay by reason
of any untrue or alleged untrue statement or omission or alleged omission.

 

No person
guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution
from any person who was not guilty of such 

 

13

 

fraudulent
misrepresentation.  The Holders'
obligations to contribute as provided in this Section 6(d) are several and
not joint.

 

7.                                       Selection of
Underwriters.  In the event any Holder of Transfer Restricted Securities covered by
the Shelf Registration Statement proposes to dispose of such Transfer
Restricted Securities through an Underwritten Offering, the investment banker
or investment bankers and manager or managers that will administer the offering
will be selected by a Majority of Holders whose Transfer Restricted Securities
are included in such offering; provided, that such investment bankers and managers must be
reasonably satisfactory to the Issuer.

 

8.                                       Miscellaneous.

 

(a)                                  Amendments
and Waivers. Except as set forth pursuant to Section 8(c) and
Section 8(i) hereto, this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions
hereof may not be given, unless the Issuer has obtained the written consent of
a Majority of Holders.

 

(b)                                 Notices.
All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail (registered or certified,
return receipt requested), electronic mail, telex, telecopier, or air courier
guaranteeing overnight delivery:

 

(i)                                     if
to a Holder, at the address set forth on the records of the registrar under the
Indenture or the transfer agent of the Common Stock, as the case may be; and

 

(ii)                                  if
to the Issuer:

 

Nektar
Therapeutics

150 Industrial Road

San Carlos, California 94070

Attention: Secretary

 

With a
copy to:

 

Cooley
Godward LLP 

Five Palo Alto Square

3000 El Camino Real

Palo Alto, CA 94306

Attention:  John M. Geschke, Esq.

 

All
such notices and communications shall be deemed to have been duly given: at the
time delivered by hand, if personally delivered; five (5) Business Days after
being deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if telecopied or electronically mailed; and
on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.

 

(c)                                  Successors
and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including
without limitation 

 

14

 

assignees
of the Holders of Transfer Restricted Securities.  The rights to cause the Issuer to register Transfer Restricted
Securities pursuant to this Agreement may be assigned by a Holder to a
transferee or assignee of Transfer Restricted Securities that (a) is a
subsidiary, parent, general partner, limited partner, retired partner, member
or retired member of a Holder, or (b) is an entity affiliated by common control
with such Holder; provided, however,
that (i) the Holder shall, with five (5) days after such transfer, furnish to
the Company written notice of the name and address of such assignee, (ii) such
assignee shall agree in writing to be bound by the terms and conditions of this
Agreement, (iii) the inclusion of the assignee as a selling securityholder and
the Transfer Restricted Securities held by such assignee in the Shelf
Registration Statement may be accomplished by a Prospectus supplement filed
pursuant to Rule 424 under the Securities Act and shall not require a
post-effective amendment to the Shelf Registration Statement, and (iv) nothing
contained herein shall be deemed to permit any assignment, transfer or other
disposition of Transfer Restricted Securities in violation of the Indenture.

 

(d)                                 Counterparts.
This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

 

(e)                                  Securities
Held by the Issuer or its Affiliates.  Whenever the consent or approval of Holders of a specified
percentage of Transfer Restricted Securities is required hereunder, Transfer
Restricted Securities held by the Issuer or its "affiliates" (as such
term is defined in Rule 405 under the Securities Act) shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage.

 

(f)                                    Headings.
The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

 

(g)                                 Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the law of the State of
California, without regard to conflict of laws principles thereof.

 

(h)                                 Severability.
If any one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be affected
or impaired thereby.

 

(i)                                     Additional Holders.  Notwithstanding anything to the contrary
contained herein, if the Issuer shall sell additional Notes under the Indenture
prior to the date that the Commission declares the Shelf Registration Statement
effective, any such holder of such Notes shall become a party to this Agreement
by executing and delivering an additional counterpart signature page to this
Agreement and shall be deemed a "Holder" and a party hereunder
without the approval of the Holders; provided,
however, that if such sale of additional Notes is after the
effectiveness of the Shelf Registration Statement, then such holder of such
Notes shall become a party to this Agreement only with the approval of a
Majority of Holders.

 

15

 

(j)                                     Entire
Agreement.  This Agreement is
intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of
the parties hereto in respect of the subject matter contained herein.  There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted by the Issuer with respect to
the Transfer Restricted Securities. 
This Agreement supersedes all prior agreements and understandings
between the parties with respect to such subject matter.

 

16

 

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

 

	
  NEKTAR THERAPEUTICS

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Ajay Bansal

  	
   

  
	
   

  	
  Ajay Bansal

  	
   

  
	
   

  	
  Chief Financial Officer

  	
   

  

 

RESALE REGISTRATION RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

HOLDERS:

 

Salomon
Brothers Qualified Investor Portfolios Multi-Strategy Arbitrage Portfolio

Salomon
Brothers Diversified Arbitrage Strategies Fund Ltd.

Salomon
Brothers Enhanced Arbitrage Strategies Fund

CEBT-
Comingled Employee Benefit Trust – Capital Structure Arbitrage

General
Motors Employees Global Group Pension Trust

General
Motors Welfare Benefits Trust

Salomon Brothers Market Neutral Arbitrage Fund L.P.

 

	
  By:

  	
  Solomon Brothers
  Asset Management, Inc.,

  the investment manager of each of the above listed Holders.

  	 

	
   

  	 

	
   

  	 

	
  Signature:

  	
  /s/  

  	
  Kenneth Lee

  	
   

  
	
   

  
	
  Print Name:

  	
   

  	
  Kenneth Lee

  	
   

  
	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	 

								

 

RESALE
REGISTRATION RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

HOLDERS:

 

ALEXANDRA GLOBAL MASTER FUND LTD.

 

	
  By:

  	
  Alexandra
  Investment Management, LLC,

  as Investment Advisor

  	 

	
   

  	 

	
   

  	 

	
  Signature:

  	
  /s/  

  	
  Mikhail Filimonov

  	
   

  
	
   

  
	
  Print Name:

  	
   

  	
  Mikhail
  Filimonov

  	
   

  
	
   

  
	
  Title:

  	
  Chairman, CEO & Chief Investment Officer

  	
   

  	 

								

 

RESALE
REGISTRATION RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

HOLDERS:

 

BRENCOURT MULTI-STRATEGY MASTER, LTD.

BRENCOURT MERGER ARBITRAGE MASTER,
LTD.

 

	
  By:

  	
  Brencourt
  Advisors, LLC as investment manager

  	 

	
   

  	 

	
   

  	 

	
  Signature:

  	
  /s/  

  	
  James D. Balakian

  	
   

  
	
   

  
	
  Print Name:

  	
   

  	
  James D.
  Balakian

  	
   

  
	
   

  
	
  Title:

  	
   

  	
  Managing
  Director

  	
   

  	 

	
   

  
	
  Address:

  	
  101 East 52nd
  Street, 8th Floor

  New York, NY 10022

  
									

 

RESALE REGISTRATION RIGHTS
AGREEMENT

SIGNATURE PAGE

 

 

HOLDER:

 

Context
Convertible Arbitrage Fund, LP

 

	
  Signature:

  	
  /s/  

  	
  Michael S. Rosen

  	
   

  
	
   

  
	
  Print Name:

  	
   

  	
  Michael S. Rosen

  	
   

  
	
   

  
	
  Title:

  	
   

  	
  Co-Chairman and
  CEO

  	
   

  	 

	
   

  
	
  Address:

  	
  12626 High Bluff
  Drive, Suite 440

  San Diego, CA 92130

  
								

 

RESALE
REGISTRATION RIGHTS AGREEMENT

SIGNATURE PAGE

 

 

HOLDER:

 

Context
Convertible Arbitrage Offshore Ltd.

 

	
  Signature:

  	
  /s/  

  	
  Jeremy Bond

  	
   

  
	
   

  
	
  Print Name:

  	
   

  	
  Jeremy Bond

  	
   

  
	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	 

	
   

  
	
  Address:

  	
  12626 High Bluff
  Drive, Suite 440

  San Diego, CA 92130

  
								

 

RESALE REGISTRATION
RIGHTS AGREEMENT

SIGNATURE PAGEExhibit 10.1

 

PLEDGE AGREEMENT

 

This
PLEDGE AGREEMENT (this “Agreement”) is made and entered into as of
October 9, 2003 by and among NEKTAR THERAPEUTICS, a Delaware corporation
(the “Grantor”), having its principal executive offices at 150 Industrial Road,
San Carlos, California 94070 and J.P. MORGAN TRUST COMPANY, NATIONAL
ASSOCIATION (“J.P. Morgan”), having an office at 560 Mission Street, 13th
Floor, San Francisco, California 94105, (i) in its capacity as trustee (the
“Trustee”) for the holders (the “Holders”) of the Notes (as hereinafter
defined) issued by the Grantor under the Indenture referred to below and (ii)
in its individual capacity, as securities intermediary (in such capacity, the
“Pledged Securities Intermediary”) at its office in New York c/o: J.P. Morgan
Chase Bank, Institutional Trust Services, 4 New York Plaza, 15th Floor, New
York, New York 10004 (the “Account Office”) with respect to the Pledge Account
(as hereinafter defined).  Capitalized
terms used herein and not otherwise defined herein shall have the meanings
given to such terms in the Indenture.

 

W I T N E S S E T H

 

WHEREAS,
the Grantor and the Trustee have entered into that certain Indenture dated as
of the date hereof (as amended, restated, supplemented or otherwise modified
from time to time, the “Indenture”), pursuant to which the Grantor is issuing
in one or more series from time to time its 3% Convertible Subordinated Notes
due 2010 (the “Notes”); and

 

WHEREAS,
subject to the terms of this Agreement, the Pledged Securities Intermediary has
established for the Grantor, as beneficial owner, a securities account (the
“Pledge Account”) at the Account Office, registered in the name of the Trustee,
as entitlement holder, and designated as Account No. 10206353.1, Reference:
“J.P. Morgan Trust Company, National Association as Pledged Securities
Intermediary, Nektar Therapeutics Convertible Bond Collateral A/C”; and

 

WHEREAS,
the Grantor has agreed to purchase or cause the purchase of security
entitlements with respect to the U. S. Government Securities identified by
CUSIP number in Schedule I hereto (such security entitlements being,
collectively, the “Pledged Securities”), for the account of the Pledged
Securities Intermediary for credit to the Pledge Account, in an amount that will
be sufficient, upon receipt of the scheduled interest and principal payments in
respect thereof, to provide for the payment of the first six scheduled interest
payments due on the Notes; and

 

WHEREAS,
to secure the obligations of the Grantor under the Indenture and the Notes to
pay in full each of the first six scheduled interest payments on the Notes and
to pay in full all of the principal, premium (if any) and interest on the Notes
and all other amounts payable by the Grantor under the Indenture in the event that
the Notes or any principal thereof or premium, if any, thereon becomes due and
payable prior to such time as the first six scheduled interest payments thereon
shall have been paid in full (collectively, the “Obligations”), the Grantor has

 

 

agreed
(i) to grant to the Trustee, for its benefit and the ratable benefit of the
Holders of the Notes, a security interest in the Pledge Account and all cash,
Pledged Securities and other Collateral (as hereinafter defined) from time to
time deposited therein or credited thereto and (ii) to execute and deliver
this Agreement in order to secure the payment and performance by the Grantor of
all the Obligations; and

 

WHEREAS,
it is a condition precedent to the purchase of the Notes by the initial Holders
thereof that the Grantor shall have granted the security interests contemplated
by this Agreement; and

 

WHEREAS,
unless otherwise defined herein or in the Indenture, terms used herein that are
defined in Article 8 or 9 of the Uniform Commercial Code as in effect in
the State of New York (the “UCC”) are used herein as therein defined:

 

NOW,
THEREFORE, in consideration of the mutual promises herein contained, and in
order to induce the initial Holders to purchase the Notes, the Grantor hereby
agrees with the Trustee, for the benefit of the Trustee and for the ratable
benefit of the Holders of the Notes, and with the Pledged Securities
Intermediary as follows:

 

SECTION 1.  Grant of Security Interest.  The Grantor hereby grants to the Trustee,
for its benefit and for the ratable benefit of the Holders of the Notes, a
security interest in and to all of the Grantor’s right, title and interest in,
to and under the following, in each case whether now owned or hereafter
acquired, wherever located and whether now or hereafter existing (hereinafter
collectively referred to as the “Collateral”):

 

(a)                                  the
Pledge Account;

 

(b)                                 all
cash or credit balances from time to time deposited in or credited to the
Pledge Account;

 

(c)                                  the
Pledged Securities and all other financial assets (including certificated and
uncertificated securities) and security entitlements from time to time
deposited in, credited to, or created or otherwise carried in the Pledge
Account;

 

(d)                                 all
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Collateral;

 

(e)                                  all
securities (whether certificated or uncertificated) or other financial assets,
security entitlements, securities accounts, accounts, general intangibles,
instruments, documents, cash or deposit accounts representing or evidencing any
or all of the Collateral; and

 

2

 

(f)                                    to
the extent not covered by clauses (a) through (e) above, all proceeds of any
and all of the foregoing Collateral (including, without limitation, proceeds
that constitute property of the types described in clauses (a) through (e)
above).

 

SECTION 2.  Secured Obligations.  This Agreement and the grant of a security
interest in the Collateral secure the prompt and complete payment and
performance when due (whether at stated maturity, by acceleration, upon
redemption or otherwise) of all Obligations now or hereafter existing, whether
for principal, premium, interest, fees, indemnities or otherwise, and all
obligations of the Grantor now or hereafter existing under this Agreement (all
such Obligations and such other obligations being, collectively, the “Secured
Obligations”).  Without limiting the
generality of the foregoing, this Agreement and the grant of a security
interest in the Collateral hereunder secure, to the fullest extent permitted by
applicable law, the payment of all amounts that constitute part of the Secured
Obligations and that would be owed by the Grantor to the Trustee or the Holders
under the Notes or the Indenture but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving the Grantor.

 

SECTION 3.  Maintaining the Pledge Account.  Prior to or concurrently with the execution
and delivery hereof and for so long as any Secured Obligation shall remain
outstanding,

 

(a)                                  the
Trustee shall establish and maintain (and the Pledged Securities Intermediary
shall maintain and administer in accordance with this Agreement) the Pledge
Account with the Pledged Securities Intermediary at the Account Office in
accordance with the terms of this Agreement. The Pledge Account shall at all
times be under the sole dominion and control of, and shall at all times be
segregated from any other custodial, collateral or other accounts maintained
by, or under the dominion and control of, the Trustee;

 

(b)                                 it
shall be a term and condition of the Pledge Account, notwithstanding any term
or condition to the contrary in any other agreement relating to the Pledge
Account, and except as otherwise provided by the provisions of Section 5
and Section 15.9 of this Agreement, that no Collateral (including proceeds
thereof) shall be paid or released from the Pledge Account to or for the
account of, or withdrawn by or for the account of, and no entitlement orders
with respect to any of the Collateral shall be given to the Pledged Securities
Intermediary by, the Grantor or any other Person other than the Trustee as provided
herein;

 

(c)                                  subject
to the provisions of this Agreement, the Pledge Account shall be registered in
the name of the Trustee on the books and records of the Pledged Securities
Intermediary, the Trustee shall be identified on such books and records as the
entitlement holder with respect to all security entitlements in all financial
assets from time to time held in or credited to the Pledge Account, and the
Trustee shall have the sole right to (i) deliver entitlement orders with
respect to the Pledge Account and any Collateral from time to time credited
thereto, deposited therein or represented thereby or (ii) make withdrawals from
the Pledge Account or 

 

3

 

otherwise exercise any other
rights with respect to any Collateral from time to time credited thereto or on
deposit therein; and

 

(d)                                 the
Pledge Account shall be subject to such applicable laws, and such applicable
regulations of any appropriate banking or governmental authority, as may now or
hereafter be in effect, including without limitation any applicable regulations
of the Board of Governors of the Federal Reserve System.

 

SECTION 4.  Acquisition of Pledged Securities for
Credit to the Pledge Account.

 

(a)                                  On
or prior to the date hereof, the Grantor shall purchase or cause the purchase
of the Pledged Securities for the account of the Pledged Securities
Intermediary for credit to the Pledge Account.

 

(b)                                 Upon
transfer or credit of the Pledged Securities to the Pledged Securities
Intermediary, as confirmed to the Pledged Securities Intermediary by the
Federal Reserve Bank of New York or another securities intermediary at which
the Pledged Securities Intermediary maintains a securities account, the Pledged
Securities Intermediary shall make appropriate book entries indicating that the
Pledged Securities have been credited to and are held in the Pledge Account.

 

SECTION 5.  Disbursements From the Pledge Account;
Transfers of Additional Amounts to the Pledge Account.

 

(a)                                  At
least three Business Days prior to the due date of any of the first six
scheduled interest payments on the Notes, the Grantor may, pursuant to written
instructions given by the Grantor to the Trustee (each an “Issuer Order”),
instruct the Trustee to direct the Pledged Securities Intermediary to release
from the Pledge Account, and pay to the Holders of the Notes as of the
applicable Regular Record Date, proceeds of the Pledged Securities sufficient
to provide for payment in full of such interest then due on the Notes.  Upon receipt of an Issuer Order, the Trustee
will direct the Pledged Securities Intermediary to release funds from (and to
the extent of) proceeds of the Pledged Securities in the Pledge Account in an
amount sufficient to provide for the payment in full of such interest then due
on the Notes, as instructed in such Issuer Order, and to transfer such funds to
the Holders of the Notes in accordance with the payment provisions of the
Indenture.  Nothing in this
Section 5 shall affect the Trustee’s rights to direct the application of
the Collateral to the payment of amounts due on the Notes upon acceleration
thereof in accordance with the terms of the Indenture.

 

(b)                                 If
the Grantor makes all or any portion of any interest payment for which the
Collateral is security from a source of funds other than the Pledge Account
(“Grantor Funds”), the Grantor may, after payment in full of such interest
payment, instruct the Trustee, pursuant to an Issuer Order, to direct the
Pledged Securities Intermediary to release to the Grantor, or to another party
designated by the Grantor in such Issuer Order (the “Grantor’s Designee”),
proceeds from the Pledge Account in an amount that, in the discretion of the
Grantor, is less than 

 

4

 

or equal
to the amount of Grantor Funds applied to such interest payment; provided
that, after giving effect to such release, the scheduled interest and principal
payments in respect of the Pledged Securities remaining in the Pledge Account,
together with any cash remaining in the Pledge Account, equal or exceed the
amount necessary to provide for the timely payment in full of interest on the
Notes for as many of the first six scheduled interest payments as shall then
remain.  Upon (i) receipt by the Trustee
of such Issuer Order and (ii) confirmation by the Trustee of the payment in
full of such interest payment (from such Grantor Funds and, if necessary,
additional funds released from the Pledge Account in accordance with
Section 5(a)), the Trustee shall direct the Pledged Securities
Intermediary to release funds from (and to the extent of) proceeds of the
Pledged Securities in the Pledge Account and to transfer such funds to the
Grantor or the Grantor’s Designee, as the case may be, as instructed in such
Issuer Order as soon as practicable after such conditions are satisfied.

 

(c)                                  If
at any time the scheduled interest and principal payments in respect of the
Pledged Securities then credited to the Pledge Account, together with any cash
then held in the Pledge Account, exceed 100% of the amount necessary (which
shall be certified in writing by an Officer of the Company or, if such amount,
together with all other amounts disbursed from the Pledge Account in the
preceding 12 month period, equals or exceeds $100,000, by a nationally
recognized firm of independent accountants selected by the Grantor and
delivered to the Trustee) to provide for the payment in full, when due, of the
first six scheduled interest payments on the Notes (or such number of the first
six scheduled interest payments on the Notes as shall then remain, as the case
may be), the Grantor may instruct the Trustee, pursuant to an Issuer Order, to
direct the Pledged Securities Intermediary to release any such excess amount to
the Grantor or to the Grantor’s Designee. 
Upon receipt of such Issuer Order (which shall be accompanied by a
certificate in accordance with, and meeting the requirements of, the provisions
of Section 314(d) of the TIA or, if the amount to be released from the
pledge, together with all other amounts disbursed from the Pledge Account in
the preceding 12 month period, equals or exceeds $100,000, by a certificate of
such nationally recognized firm of independent accountants stating that the
scheduled interest and principal payments in respect of the Pledged Securities
credited to the Pledge Account, together with any cash held in the Pledge
Account, in each case after giving effect to such release, equal or exceed 100%
of the amount necessary to provide for the payment in full, when due, of such
remaining scheduled interest payments on the Notes), the Trustee shall instruct
the Pledged Securities Intermediary to release funds from (and to the extent
of) proceeds of such Pledged Securities in accordance with such Issuer Order
and the accompanying certificate and to transfer such funds to the Grantor or
the Grantor’s Designee, as the case may be.

 

(d)                                 Upon
the release of any Collateral from the Pledge Account in accordance with the
terms of this Section 5, whether upon release of proceeds of Collateral to
the Holders as payment of interest or upon release of proceeds of Collateral to
the Grantor or the Grantor’s Designee as provided in Section 5(b) or
Section 5(c), the security interest evidenced by this Agreement in such
released Collateral will automatically terminate and be of no further force and
effect.

 

5

 

(e)                                  At
least three Business Days prior to the due date of each of the first six
scheduled interest payments on the Notes, the Grantor shall give the Trustee
notice (by Issuer Order) as to whether such interest payment will be made
pursuant to Section 5(a) or 5(b) above and the respective amounts of
interest that will be paid from the Pledge Account and from Grantor Funds (it
being understood that the failure by the Grantor to provide an Issuer Order
shall not constitute an Event of Default). Any Grantor Funds to be used to make
any interest payment (or portion thereof) shall be delivered to the Trustee, in
immediately available funds, prior to 12:00 p.m. (New York City time) on such
interest payment date. If no such notice is given or such Grantor Funds have
not been so delivered, the Trustee will act pursuant to Section 5(a) above
as if it had received an Issuer Order pursuant thereto for the payment in full
of the interest then due from the proceeds of Pledged Securities in the Pledge
Account.

 

(f)                                    If
on any interest payment date there are insufficient proceeds of Pledged
Securities in the Pledge Account to make the scheduled payment of interest due
on such date (after taking into account any Grantor Funds delivered to the
Trustee as provided in Section 5(b) above), the Trustee shall direct the
Pledged Securities Intermediary to liquidate Collateral in the Pledge Account
to the extent necessary to pay, in full, such scheduled payment of interest.

 

(g)                                 Nothing
contained in this Agreement (including without limitation the provisions hereof
regarding the delivery of Issuer Orders by the Grantor to the Trustee) shall
(i) afford the Grantor any right to issue entitlement orders to the Pledged
Securities Intermediary or any other Person with respect to the Pledge Account
or any security entitlement in respect of the Pledged Securities, or otherwise
afford the Grantor control of the Pledge Account or any such security
entitlement, or (ii) otherwise give rise to any rights of the Grantor with
respect to the Pledge Account, the Pledged Securities, or any security
entitlement thereto, other than the Grantor’s rights under this Agreement as
the beneficial owner of Collateral pledged to and subject to the exclusive
dominion and control (subject to the Trustee’s obligations to comply with
Sections 5(a) through (f) and Section 15.9 hereof) of the Trustee in its
capacity as such (and not as a securities intermediary).  The Grantor acknowledges, confirms and
agrees that the Trustee holds a security interest in the Pledged Securities
solely as Trustee for the Holders of the Notes and not as a securities
intermediary.

 

(h)                                 Anything
contained herein to the contrary notwithstanding, prior to any release of any
Collateral to the Grantor or the Grantor’s Designee, the Grantor shall deliver
to the Trustee such certificates, opinions or other documents as may be
required by the Indenture or the TIA in connection with such release and shall
otherwise comply with the requirements of the Indenture and the TIA applicable
thereto.

 

(i)                                     If
at any time the Grantor is obligated to pay any amount to the Trustee pursuant
to the terms of this Agreement and the Trustee charges such amount against the
Pledge Account with the result that the scheduled interest and principal
payments in respect of the Pledged Securities then credited to the Pledge
Account, together with any cash then held in the Pledge Account, are less than
100% of the amount necessary to provide for the payment in full, when 

 

6

 

due, of
the first six scheduled interest payments on the Notes (or such number of the
first six scheduled interest payments on the Notes as shall then remain, as the
case may be), the Grantor shall deposit cash into the Pledge Account in the
amount of such deficiency and shall deliver to the Trustee a certificate signed
by one of its Officers (as defined in the Indenture) stating that the scheduled
interest and principal payments in respect of the Pledged Securities credited
to the Pledge Account, together with any cash held in the Pledge Account, in
each case after giving effect to such deposit by the Grantor, equal or exceed
100% of the amount necessary to provide for the payment in full, when due, of
such remaining scheduled interest payments on the Notes.

 

(j)            Neither
the Trustee nor the Pledged Securities Intermediary shall be liable for any
disbursement made or other action taken in accordance with an Issuer Order. In
no event shall either of the Pledged Securities Intermediary or the Trustee in
its role hereunder be liable for any special, indirect or consequential loss or
damage of any kind whatsoever (including but not limited to lost profits),
except as a result of its gross negligence or willful misconduct.

SECTION 6.  Securities Intermediary.  (a) J.P. Morgan, as Pledged Securities
Intermediary, hereby represents and warrants to, and agrees with the Grantor
and the Trustee, as follows:

 

(a)                                  It
is a securities intermediary as of the date hereof and, for so long as this
Agreement remains in effect and J.P. Morgan is acting as the Pledged Securities
Intermediary hereunder, it shall remain a securities intermediary and shall at
all times act in such capacity with respect to the Trustee, the Pledge Account
and all other Collateral.

 

(b)                                 The
Pledge Account is and will be maintained as a securities account.

 

(c)                                  Each
item of property (whether cash, certificated or uncertificated securities,
security certificates, security entitlements or any other property whatsoever)
credited to the Pledge Account shall be treated as a financial asset.

 

(d)                                 All
financial assets in registered form or payable to, or to the order of, any
Person and credited to the Pledge Account shall be registered in the name of,
payable to or to the order of, or endorsed to, the Pledged Securities
Intermediary, and in no case during the term of this Agreement will any
financial asset credited to the Pledge Account be registered in the name of, payable
to or to the order of, or endorsed to, the Grantor, except to the extent the
foregoing have been subsequently endorsed by the Grantor to the Pledged
Securities Intermediary or in blank.

 

(e)                                  It
(i) shall, upon written direction from the Trustee, as entitlement holder with
respect to the Pledge Account, the Pledged Securities and all other Collateral,
and without further consent from the Grantor, comply with all instructions,
entitlement orders and directions of any kind originated by the Trustee concerning
the Collateral, including without limitation directions to liquidate or
otherwise dispose of the Collateral as and to the extent directed by the
Trustee and to pay over to the Trustee, or as otherwise directed by the
Trustee, all proceeds and other value therefrom or otherwise distributed with
respect thereto, without any set-off or deduction, and (ii) 

 

7

 

shall
not, except as otherwise directed in writing by the Trustee, as entitlement
holder with respect to the Pledge Account, the Pledged Securities and all other
Collateral, comply or agree to comply with any instructions, entitlement orders
or directions of any kind that are originated by the Grantor or any other
Person with respect to any of the Collateral.

 

(f)                                    Except
for the claims and interests of the Trustee under this Agreement and the rights
of the Grantor vis-à-vis the Trustee hereunder, it does not know of any claim
to or security interest or other interest in the Collateral.

 

(g)                                 It
hereby waives its rights to set off any obligations of the Grantor to it
against any or all of the Collateral, and hereby agrees that any and all liens,
encumbrances, claims or security interests which it may have against the
Collateral, either now or in the future, are and shall be subordinate and
junior in right of payment to the prior payment in full of all Secured
Obligations.

 

SECTION 7.  Representations and Warranties.  The Grantor hereby represents and warrants
that:

 

(a)                                  The
execution and delivery by the Grantor of, and the performance by the Grantor of
its obligations under, this Agreement will not contravene any provision of
applicable law or the articles of incorporation or by-laws of the Grantor or
any material agreement or other material instrument binding upon the Grantor or
any judgment, order or decree of any governmental body, agency or court having
jurisdiction over the Grantor, or result in the creation or imposition of any
lien on any assets of the Grantor, except for the security interests granted
under this Agreement.

 

(b)                                 No
consent of any other Person and no approval, authorization or order of, action
by or qualification with, any governmental authority, regulatory body, agency
or other third party is required (i) for the execution, delivery or performance
by the Grantor of its obligations under this Agreement or (ii) for the grant by
the Grantor of the security interests created by this Agreement.    To the best of Grantor’s knowledge, no
consent of any other Person and no approval, authorization or order of, action
by or qualification with, any governmental authority, regulatory body, agency
or other third party is required for the exercise by the Trustee of the rights
provided for in this Agreement or the remedies in respect of the Collateral
pursuant to this Agreement.

 

(c)                                  The
Grantor is the beneficial owner of the Collateral, free and clear of any lien
or claim of any Person (except for the security interests created by this
Agreement and any lien arising under the Indenture in favor of the
Trustee).  The Grantor has not at any
time transferred any of the Collateral to any Person other than the Trustee or
encumbered any of the Collateral with a lien in favor of any other Person.  No financing statement or instrument similar
in effect covering all or any part of the Grantor’s interest in any of the
Collateral is on file in any public or 

 

8

 

recording
office, other than the financing statements filed pursuant to this
Agreement.  Other than the Grantor’s
previous name, Inhale Therapeutics, Inc., the Grantor has no trade names.

 

(d)                                 This
Agreement has been duly authorized, executed and delivered by the Grantor and
constitutes a valid and binding agreement of the Grantor, enforceable against
the Grantor in accordance with its terms, except as the enforceability hereof
may be limited by applicable bankruptcy, insolvency or similar laws affecting
creditors’ rights generally or by equitable principles of general
applicability.

 

(e)                                  Upon
the transfer to the Pledged Securities Intermediary of the Pledged Securities,
the crediting thereof to the Pledge Account in accordance with Section 4
above and the execution and delivery of this Agreement by all of the parties
hereto, the grant of a security interest in the Collateral pursuant to this
Agreement for the benefit of the Trustee and the Holders of the Notes will
create a valid and perfected first priority security interest in such
Collateral securing the payment of the Secured Obligations.

 

(f)                                    There
are no legal or governmental proceedings pending or, to the best of the
Grantor’s knowledge, threatened to which the Grantor is a party or to which any
of the properties of the Grantor is subject that would adversely affect in any
material respect the power or ability of the Grantor to perform its obligations
under this Agreement or to consummate the transactions contemplated hereby.

 

(g)                                 The
pledge of the Collateral pursuant to this Agreement is not prohibited by any
law or governmental regulation (including, without limitation, Regulations U
and X of the Board of Governors of the Federal Reserve System) applicable to
the Grantor.

 

(h)                                 To
the best of Grantor’s knowledge, no Default or Event of Default exists.

 

(i)                                     The
Grantor’s exact legal name is that indicated on the signature page hereof.

 

(j)                                     The
Grantor is a corporation organized in the State of Delaware.

 

(k)                                  The
Grantor’s organizational identification number is 943134940.

 

(l)                                     The
Grantor’s place of business or, if more than one, its chief executive office as
well as the Grantor’s mailing address is as is set forth in Section 15.1.

 

SECTION 8.  Further Assurances.

 

(a)                                  The
Grantor agrees that from time to time, it will, at its own expense, promptly
upon reasonable request by the Trustee, execute and deliver or cause to be
executed and delivered, or use its commercially reasonable efforts to procure,
all assignments, instruments and other documents, all in form and substance
reasonably satisfactory to the Trustee, deliver any instruments to the Trustee
and take any other actions that may be necessary or, in the reasonable 

 

9

 

opinion
of the Trustee, desirable to perfect, continue the perfection of, or protect
the first priority of the Trustee’s security interest in and to the Collateral,
to protect the Collateral against the rights, claims, or interests of third
Persons (other than any such rights, claims or interests created by or arising
through the Trustee) or to effect the purposes of this Agreement.

 

(b)                                 The
Grantor hereby authorizes the Trustee to file any financing or continuation
statements with respect to the Collateral without the signature of the Grantor
(to the extent permitted by applicable law); provided, however, that the
Grantor shall not be relieved of any of its obligations under Section 8(a)
or 8(d) hereof.  A photocopy or other
reproduction of this Agreement or any financing statement covering the
Collateral or any part thereof shall be sufficient as a financing statement
where permitted by law.

 

(c)                                  The
Grantor will furnish to the Trustee from time to time statements and schedules
further identifying and describing the Collateral and such other reports in
connection with the Collateral as the Trustee may reasonably request, all in
reasonable detail.

 

(d)                                 The
Grantor will promptly pay all costs and expenses reasonably incurred in
connection with any of the foregoing within 30 days of receipt of an invoice
therefor. The Grantor also agrees, whether or not requested by the Trustee, to
take all actions that are necessary to perfect and to continue the perfection
of, and to protect the first priority of, the Trustee’s security interest in
and to the Collateral, including the filing of all necessary financing and
continuation statements, and to protect the Collateral against the rights,
claims or interests of third Persons (other than any such rights, claims or
interests created by or arising through the Trustee).

 

(e)                                  The
Grantor hereby irrevocably authorizes the Trustee at any time and from time to
time to file in any Uniform Commercial Code jurisdiction any initial financing
statements and amendments thereto that (x) indicate the Collateral as being of
an equal or lesser scope or with greater detail, and (y) contain any other
information required by part 5 of Article 9 of the Uniform Commercial Code
of the appropriate jurisdiction for the sufficiency or filing office acceptance
of any financing statement or amendment; provided that the Trustee shall have no
obligation to perform any of the foregoing actions other than those expressly
provided herein or in the Indenture.

 

(f)                                    The
Pledged Securities Intermediary covenants and agrees with the Grantor and the
Trustee that for so long as the Pledged Securities Intermediary holds assets in
the Pledge Account, the Pledged Securities Intermediary will, as soon as
reasonably practicable, certify in writing the aggregate dollar value of the
assets held in such Pledge Account on a monthly basis, as of the Grantor’s
fiscal month end or at such other time as the parties may mutually agree.  The Grantor will provide the Pledged
Securities Intermediary with a schedule of its fiscal months as soon as
such schedule becomes reasonably available.

 

10

 

SECTION 9.  Covenants.  The Grantor covenants and agrees with the Trustee and the Holders
of the Notes that from and after the date of this Agreement until the earlier
of (x) payment in full in cash of each of the first six scheduled interest
payments due on the Notes under the terms of the Indenture or (y) payment in
full in cash of all Secured Obligations due and owing under the Indenture and
the Notes in the event such Secured Obligations become due and payable prior to
the payment in full of the first six scheduled interest payments on the Notes:

 

(a)                                  it
will not (and will not purport to) sell or otherwise dispose of, or grant any
option, right or warrant with respect to, any of the Collateral or its
beneficial interest therein, and it will not create or permit to exist any lien
or other adverse interest in or with respect to its beneficial interest in any
of the Collateral (except for the security interests granted under this
Agreement and any lien arising under the Indenture in favor of the Trustee);

 

(b)                                 it
will not (i) enter into any agreement or understanding that restricts or
inhibits or purports to restrict or inhibit the Trustee’s rights or remedies
hereunder, including without limitation the Trustee’s right to sell or
otherwise dispose of the Collateral, or (ii) fail to pay or discharge when due
any tax, assessment or levy of any nature with respect to its beneficial
interest in the Collateral not later than five days prior to the date of any
proposed sale under any judgment, writ or warrant of attachment with respect to
such beneficial interest; and

 

(c)                                  it
will not, without providing at least five days prior written notice to the
Trustee, change its name, its place of business or, if more than one, chief
executive office, or its mailing address or organizational identification
number and will not change its type of organization, jurisdiction of
organization or other legal structure.

 

SECTION 10.  Power of Attorney.  In addition to all of the powers granted to
the Trustee pursuant to the Indenture, the Grantor hereby appoints and
constitutes the Trustee as the Grantor’s attorney-in-fact (with full power of
substitution), with full authority in the place and stead of the Grantor and in
the name of the Grantor or otherwise, from time to time in the Trustee’s
reasonable discretion to take any action and to execute any instrument that the
Trustee may deem necessary or advisable to accomplish the purposes of this
Agreement, including, without limitation:

 

(a)                                  to
ask for, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipt for moneys due and to become due under or in respect of
any of the Collateral,

 

(b)                                 to
receive, indorse and collect any drafts or other instruments, documents and
chattel paper,

 

(c)                                  to
file any claims or take any action or institute any proceedings that the
Trustee may reasonably deem necessary or desirable for the collection of any of
the Collateral or otherwise to enforce the rights of the Trustee with respect
to any of the Collateral, and

 

11

 

(d)                                 to
pay or discharge any taxes or liens levied or placed upon the Collateral, the
legality or validity thereof and the amounts necessary to discharge the same
all as determined by the Trustee in its sole discretion, it being understood that
any such payments made by the Trustee shall become part of the Secured
Obligations of the Grantor to the Trustee, and shall be due and payable
immediately upon demand;

 

provided,
however, that the Trustee shall have no obligation to perform
any of the foregoing actions. The Trustee’s authority under this
Section 10 shall include, without limitation, the authority to endorse and
negotiate any checks or instruments representing proceeds of Collateral in the
name of the Grantor, execute and give receipt for any certificate of ownership
or any document constituting Collateral, transfer title to any item of
Collateral, authorize the filing of any financing statements (to the extent
permitted by applicable law) or any other documents reasonably deemed necessary
or appropriate by the Trustee to preserve, protect or perfect the security
interest in the Collateral and to file the same, prepare, file and sign the
Grantor’s name on any notice of lien, and to take any other actions arising
from or incident to the powers granted to the Trustee in this Agreement. This
power of attorney is coupled with an interest and is irrevocable by the
Grantor.

 

SECTION 11.  No Assumption of Duties; Reasonable Care.  The rights and powers conferred on the
Trustee hereunder are solely to preserve and protect the security interest of
the Trustee and the Holders of the Notes in and to the Collateral granted
hereby and shall not be interpreted to, and shall not, impose any duties on the
Trustee in connection therewith other than those expressly provided herein or
in the Indenture or imposed under applicable law. Except as provided by herein,
by applicable law or by the Indenture, the Trustee shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in
its possession if the Collateral is accorded treatment substantially equal to
that which the Trustee accords similar property held by itself for its own
account, it being understood that the Trustee, in its capacity as such, shall
not have any responsibility for (a) ascertaining or taking action with respect
to calls, conversions, exchanges, maturities or other matters relative to any
Collateral, whether or not the Trustee has or is deemed to have knowledge of
such matters, (b) taking any necessary steps to preserve rights against any
parties with respect to any Collateral or (c) investing or reinvesting any of
the Collateral or any loss on any investment. Without limiting any rights of
the Trustee hereunder, the rights and limitations upon the liability of the
Trustee set forth in Article 5 of the Indenture are expressly incorporated
herein and made a part hereof and shall extend to the role of the Trustee as
Pledged Securities Intermediary.

 

SECTION 12.  Indemnity.  The Grantor shall indemnify, hold harmless and defend the
Trustee, the Pledged Securities Intermediary and each of their respective
directors, officers, agents and employees, from and against any and all claims,
actions, obligations, liabilities and expenses, including defense costs, investigative
fees and costs, and legal fees and damages arising from their execution of or
performance under this Agreement, except to the extent that such claim, action,
obligation, liability or expense is directly attributable to the bad faith,
gross 

 

12

 

negligence or willful
misconduct of such indemnified person. This indemnification shall survive the
termination of this Agreement.

 

SECTION 13.  Remedies Upon Event of Default.  If any Event of Default shall have occurred
and be continuing:

 

(a)                                  The
Trustee may exercise, in addition to all other rights given by law or by this
Agreement or the Indenture, all of the rights and remedies with respect to the
Collateral of a secured party under the Uniform Commercial Code as in effect
from time to time in any relevant jurisdiction and also may, without notice
except as specified below, (i) sell, redeem or liquidate any of the Collateral,
(ii) transfer any or all of the Collateral to any account designated by the
Trustee, including an account or accounts established in the Trustee’s name,
(iii) register title to any Collateral in any name specified by the Trustee,
including the name of the Trustee or any of its nominees or agents, without
reference to any interest of the Grantor, or (iv) sell the Collateral or any
part thereof in one or more parcels at any broker’s board or at public or
private sale, in one or more sales or lots, at any of the Trustee’s offices or
elsewhere, for cash, on credit or for future delivery, and upon such other
terms as the Trustee may deem commercially reasonable.  The Grantor agrees that the Collateral is of
a type customarily sold on recognized markets and, accordingly, that no notice
to any Person is required before any sale of any of the Collateral pursuant to
the terms of this Agreement; provided, however that, without prejudice
to the foregoing, to the extent notice of any such sale shall be required by
law, the Grantor agrees that at least ten days’ notice to the Grantor of the
time and place of any public sale or the time after which any private sale is
to be made shall constitute reasonable notification. The Trustee shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given. The Trustee may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned. The purchaser of any or all Collateral so sold shall thereafter hold
the same absolutely free from any claim, encumbrance or right of any kind
whatsoever created by or through the Grantor. Any sale of the Collateral
conducted in conformity with reasonable commercial practices of banks,
insurance companies, commercial finance companies, or other financial
institutions disposing of property similar to the Collateral shall be deemed to
be commercially reasonable. The Trustee or any Holder of Notes may, in its own
name or in the name of a designee or nominee, buy any of the Collateral at any
public sale and, if permitted by applicable law, at any private sale. All
expenses (including court costs and reasonable attorneys’ fees, expenses and
disbursements) of, or incident to, the enforcement of any of the provisions
hereof shall be recoverable from the proceeds of the sale or other disposition
of the Collateral.  If there are
insufficient Pledged Securities together with proceeds of Pledged Securities
and other Collateral in the Pledge Account to make any required payment on the
Secured Obligations, the Grantor shall be liable to the Trustee for any
deficiency.

 

(b)                                 All
cash proceeds received by or on behalf of the Trustee in respect of any sale
of, collection from, or other realization upon all or any part of the Collateral
may, following the payment of the reasonable fees and expenses of the Trustee,
be held by the Trustee (or by the 

 

13

 

Pledged
Securities Intermediary on its behalf) as collateral for, and/or then or at any
time thereafter applied (after payment of any amounts payable to the Trustee
pursuant to Section 14) in whole or in part by the Trustee as provided in
clause SECOND of Section 4.13 of the Indenture.  Any surplus of such cash or cash proceeds held by or on behalf of
the Trustee and remaining after payment in full of all the Secured Obligations
shall be paid over as provided in clause THIRD of Section 4.13 of the
Indenture.

 

(c)                                  The
Trustee may, without notice to the Grantor except as required by law and at any
time or from time to time, charge, set-off and otherwise apply all or any part
of the Secured Obligations against the Pledge Account or any part thereof.

 

(d)                                 The
Grantor further agrees to use its commercially reasonable efforts to do or
cause to be done all such other acts as may be necessary to make such sale or
sales of all or any portion of the Collateral pursuant to this Section 13
valid and binding and in compliance with any and all other applicable
requirements of law. The Grantor further agrees that a breach of any of the
covenants contained in this Section 13 will cause irreparable injury to
the Trustee and the Holders of the Notes, that the Trustee and the Holders of
the Notes have no adequate remedy at law in respect of such breach and, as a
consequence, that each and every covenant contained in this Section 13
shall be specifically enforceable against the Grantor and, to the fullest
extent permitted by law, the Grantor hereby waives and agrees not to assert any
defenses against an action for specific performance of such covenants except
for a defense that no Event of Default has occurred and is continuing.

 

SECTION 14.  Expenses.  The Grantor will promptly upon demand pay to the Trustee and the
Pledged Securities Intermediary the amount of any and all reasonable expenses,
including, without limitation, the reasonable fees, expenses and disbursements
of counsel, experts and agents retained by the Trustee or the Pledged
Securities Intermediary, as the case may be, that the Trustee or the Pledged
Securities Intermediary, as the case may be, may incur in connection with (a)
the review, negotiation and administration of this Agreement, (b) the custody
or preservation of, or the sale of, collection from, or other realization upon,
any of the Collateral, (c) the exercise or enforcement of any of the rights of
the Trustee and the Holders of the Notes hereunder or (d) the failure by the
Grantor to perform or observe any of the provisions hereof.

 

SECTION 15.  Miscellaneous Provisions.

 

Section 15.1.  Notices.  Any notice or other communication given hereunder shall be
sufficiently given if in writing and delivered in person or mailed by first
class mail, commercial courier service or telecopier communication, addressed
as follows:

 

14

 

IF TO THE GRANTOR:

 

Nektar Therapeutics

150 Industrial Road

San Carlos, California 94070

Attention:  Chief Financial
Officer

Fax: 650-631-3150

 

IF TO THE TRUSTEE OR
PLEDGED SECURITIES INTERMEDIARY:

 

J.P. Morgan Trust Company, National Association

560 Mission Street

13th Floor

San Francisco, California 94105

Attention:  Institutional Trust
Services

Fax: 415-315-7585

 

All
such notices and other communications shall, when mailed, delivered or
telecopied, respectively, be effective when deposited in the mails, delivered
or telecopied, respectively, addressed as aforesaid.

 

Section 15.2.  No Adverse Interpretation of Other
Agreements.  This Agreement may not
be used to interpret another pledge, security or debt agreement of the Grantor
or any subsidiary thereof. No such pledge, security or debt agreement (other
than the Indenture) may be used to interpret this Agreement.

 

Section 15.3.  Severability.  The provisions of this Agreement are
severable, and if any clause or provision shall be held invalid, illegal or
unenforceable in whole or in part in any jurisdiction, then, to the fullest
extent permitted by law,  such
invalidity or unenforceability shall affect in that jurisdiction only such
clause or provision, or part thereof, and shall not in any manner affect such
clause or provision in any other jurisdiction or any other clause or provision
of this Agreement in any jurisdiction.

 

Section 15.4.  Headings.  The headings in this Agreement have been inserted for convenience
of reference only, are not to be considered a part hereof and shall in no way
modify or restrict any of the terms or provisions hereof.

 

Section 15.5.  Counterpart Originals.  This Agreement may be signed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
together constitute one and the same agreement.

 

Section 15.6.  Benefits of Agreement.  Nothing in this Agreement, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, and the 

 

15

 

Holders of the Notes, any
benefit or any legal or equitable right, remedy or claim under this Agreement.

 

Section 15.7.  Amendments, Waivers and Consents.  Any amendment or waiver of any provision of
this Agreement and any consent to any departure by the Grantor from any
provision of this Agreement shall be effective only if made or duly given in
compliance with all of the terms and provisions of the Indenture, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given, provided that an amendment or supplement
to this Agreement for the purpose contemplated by Section 16 may be
entered into by the Grantor, the Trustee and the Pledged Securities
Intermediary without the consent of any Holder, so long as such amendment or
supplement is reasonably satisfactory in form and substance to the Grantor, the
Trustee and the Pledged Securities Intermediary.  Neither the Trustee nor any Holder of Notes shall be deemed, by
any act, delay, indulgence, omission or otherwise, to have waived any right or
remedy hereunder or to have acquiesced in any Event of Default or in any breach
of any of the terms and conditions hereof. 
Failure of the Trustee or any Holder of Notes to exercise, or delay in
exercising, any right, power or privilege hereunder shall not preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege.  A waiver by the Trustee or
any Holder of Notes of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy that the Trustee or such
Holder would otherwise have on any future occasion.  The rights and remedies herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any rights or
remedies provided by law.

 

Section 15.8.  Interpretation of Agreement.  To the fullest extent permitted by
applicable law, acceptance of or acquiescence in a course of performance rendered
under this Agreement shall not be relevant to determine the meaning of this
Agreement even though the accepting or acquiescing party had knowledge of the
nature of the performance and opportunity for objection.

 

Section 15.9.  Continuing Security Interest; Termination.

 

(a)                                  This
Agreement shall create a continuing security interest in and to the Collateral
and shall, unless otherwise provided in this Agreement, remain in full force
and effect until the payment in full in cash of the Secured Obligations. This
Agreement shall be binding upon the Grantor, its transferees, successors and
assigns, and shall inure, together with the rights and remedies of the Trustee
hereunder, to the benefit of the Trustee, the Holders of the Notes, the Pledged
Securities Intermediary and their respective successors, transferees and
assigns.

 

(b)                                 This
Agreement (other than Grantor’s obligations under Sections 12 and 14) shall
terminate upon the earlier of (i) the payment in full in cash of the Secured
Obligations and (ii) the payment in full in cash of the first six scheduled
interest payments on all of the Notes. 
At such time, the Trustee shall, pursuant to an Issuer Order, direct the
Pledged Securities Intermediary to promptly transfer to the Grantor all of the
Collateral hereunder that has not been sold, disposed of, retained or applied
by or on behalf of the Trustee in accordance with the terms

 

16

 

 of this Agreement and the Indenture and take
all other actions that are necessary to release the security interest created
by this Agreement in and to the Collateral, including the execution and
delivery of all termination statements necessary to terminate any financing or
continuation statements filed with respect to the Collateral.  Such transfer shall be without warranty by
or recourse to the Trustee in its capacity as such, except as to the absence of
any liens on the Collateral created by or arising through the Trustee, and
shall be at the expense of the Grantor.

 

Section 15.10.  Survival of Representations and Covenants.  All representations, warranties and
covenants of the Grantor contained herein shall survive the execution and
delivery of this Agreement and the termination of this Agreement.

 

Section 15.11.  Waivers.  The Grantor, to the fullest extent permitted by applicable law,
waives presentment and demand for payment of any of the Obligations, protest
and notice of dishonor or default with respect to any of the Obligations, and
all other notices to which the Grantor might otherwise be entitled, except as
otherwise expressly provided herein or in the Indenture.

 

Section 15.12.  Authority of the Trustee.

 

(a)                                  The
Trustee shall have and be entitled to exercise all powers hereunder that are
specifically granted to it by the terms hereof, together with such powers as
are reasonably incident thereto. The Trustee may perform any of its duties
hereunder or in connection with the Collateral by or through agents or
employees and shall be entitled to retain counsel and to act in reliance upon
the advice of counsel concerning all such matters. Except as otherwise
expressly provided in this Agreement or the Indenture, neither the Trustee nor
any director, officer, employee, attorney or agent of the Trustee shall be
liable to the Grantor for any action taken or omitted to be taken by the
Trustee, in its capacity as Trustee, hereunder, except for its own bad faith,
gross negligence or willful misconduct, and the Trustee shall not be
responsible for the validity, effectiveness or sufficiency hereof or of any
document or security furnished pursuant hereto. The Trustee and its directors,
officers, employees, attorneys and agents shall be entitled to rely on any
communication, instrument or document reasonably believed by it or them to be genuine
and correct and to have been signed or sent by the proper person or persons.

 

(b)                                 The
Grantor acknowledges that the rights and responsibilities of the Trustee under
this Agreement with respect to any action taken by the Trustee or the exercise
or non-exercise by the Trustee of any option, right, request, judgment or other
right or remedy provided for herein or resulting or arising out of this
Agreement shall, as between the Trustee and the Holders of the Notes, be
governed by the Indenture and by such other agreements with respect thereto as
may exist from time to time among them, but, as between the Trustee and the
Grantor, the Trustee shall be conclusively presumed to be acting as agent for
the Holders of the Notes with full and valid authority so to act or refrain
from acting, and the Grantor shall not be obligated or entitled to make any
inquiry respecting such authority.

 

17

 

Section 15.13.  Final Expression.  This Agreement, together with the Indenture
and any other agreement executed in connection herewith, is intended by the
parties as a final expression of this Agreement and is intended as a complete
and exclusive statement of the terms and conditions thereof.

 

Section 15.14.  Rights of Holders of the Notes. No
Holder of Notes shall have any independent rights hereunder other than those
rights granted to individual Holders of the Notes pursuant to the Indenture; provided
that nothing in this subsection shall limit any rights granted to the
Trustee under the Notes or the Indenture.

 

Section 15.15.  Governing Law; Submission to
Jurisdiction; Waiver of Jury Trial; Waiver of Damages.

 

(a)                                  THIS
AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED UNDER THE LAWS OF THE STATE OF
NEW YORK.

 

(b)                                 ANYTHING
CONTAINED IN THIS AGREEMENT OR IN ANY OTHER AGREEMENT BETWEEN THE TRUSTEE AND
THE PLEDGED SECURITIES INTERMEDIARY TO THE CONTRARY NOTWITHSTANDING, THE
“PLEDGED SECURITIES INTERMEDIARY’S JURISDICTION” WITH RESPECT TO THE PLEDGED
SECURITIES FOR PURPOSES OF SECTIONS 8-110(e), 9-305(a)(3) AND 9-304(b)(1) OF
THE UCC SHALL BE THE STATE OF NEW YORK.

 

(c)                                  FOR
ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, THE GRANTOR
HEREBY AGREES TO SUBMIT TO THE JURISDICTION OF ANY FEDERAL OR STATE COURT
LOCATED IN THE CITY OF NEW YORK.

 

(d)                                 THE
GRANTOR AGREES THAT THE TRUSTEE SHALL, IN ITS CAPACITY AS TRUSTEE OR IN THE
NAME AND ON BEHALF OF ANY HOLDER OF NOTES, HAVE THE RIGHT, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW (AND TO THE EXTENT THE TRUSTEE HAS RECEIVED
INDEMNITY DEEMED SATISFACTORY TO IT AND HAS AGREED TO DO SO), TO PROCEED
AGAINST THE GRANTOR OR THE COLLATERAL IN A COURT IN ANY LOCATION REASONABLY
SELECTED IN GOOD FAITH (AND HAVING PERSONAL OR IN REM JURISDICTION OVER THE
GRANTOR OR THE COLLATERAL, AS THE CASE MAY BE) TO ENABLE THE TRUSTEE TO
REALIZE ON SUCH COLLATERAL, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER
ENTERED IN FAVOR OF THE TRUSTEE. THE GRANTOR AGREES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THAT IT WILL NOT ASSERT ANY COUNTERCLAIMS, SETOFFS
OR CROSSCLAIMS IN ANY PROCEEDING BROUGHT BY THE TRUSTEE TO REALIZE ON SUCH
PROPERTY OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE TRUSTEE,
EXCEPT FOR SUCH COUNTERCLAIMS, SETOFFS OR CROSSCLAIMS WHICH, IF NOT ASSERTED IN
ANY SUCH PROCEEDING, COULD NOT OTHERWISE BE BROUGHT OR 

 

18

 

ASSERTED.  THE GRANTOR WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY HAVE TO THE
LOCATION OF THE COURT IN THE CITY OF NEW YORK IN THE BOROUGH OF MANHATTAN ONCE
THE TRUSTEE HAS COMMENCED A PROCEEDING DESCRIBED IN THIS PARAGRAPH INCLUDING,
WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS.

 

(e)                                  THE
GRANTOR AGREES THAT NONE OF ANY HOLDER OF NOTES, (EXCEPT AS OTHERWISE PROVIDED
IN THIS AGREEMENT OR THE INDENTURE) THE TRUSTEE IN ITS CAPACITY AS TRUSTEE, OR
J.P. MORGAN IN ITS CAPACITY AS PLEDGED SECURITIES INTERMEDIARY SHALL HAVE ANY
LIABILITY TO THE GRANTOR (WHETHER ARISING IN TORT, CONTRACT OR OTHERWISE) FOR
LOSSES SUFFERED BY THE GRANTOR IN CONNECTION WITH, ARISING OUT OF, OR IN ANY
WAY RELATED TO, THE TRANSACTIONS CONTEMPLATED AND THE RELATIONSHIP ESTABLISHED
BY THIS AGREEMENT, OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION
THEREWITH, UNLESS SUCH LOSSES WERE THE RESULT OF ACTS OR OMISSIONS ON THE PART
OF THE TRUSTEE OR SUCH HOLDERS OF NOTES, AS THE CASE MAY BE, CONSTITUTING
BAD FAITH, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

(f)                                    TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE GRANTOR WAIVES THE POSTING
OF ANY BOND OTHERWISE REQUIRED OF THE TRUSTEE OR ANY HOLDER OF NOTES IN
CONNECTION WITH ANY JUDICIAL PROCESS OR PROCEEDING TO ENFORCE ANY JUDGMENT OR
OTHER COURT ORDER PERTAINING TO THIS AGREEMENT OR ANY RELATED AGREEMENT OR
DOCUMENT ENTERED IN FAVOR OF THE TRUSTEE OR ANY HOLDER OF NOTES, OR TO ENFORCE
BY SPECIFIC PERFORMANCE, TEMPORARY RESTRAINING ORDER OR PRELIMINARY OR
PERMANENT INJUNCTION, THIS AGREEMENT OR ANY RELATED AGREEMENT OR DOCUMENT
BETWEEN THE GRANTOR ON THE ONE HAND AND THE TRUSTEE AND/OR THE HOLDERS OF THE
NOTES ON THE OTHER HAND.

 

SECTION 16.  Provisions Relating to Additional Notes.  The Grantor and the Trustee, on behalf of
the Holders of the Notes originally issued on the date hereof (the “Initial
Notes”) and on behalf of the Holders of any additional Notes issued in one or
more series from time to time after the date hereof in accordance with the
provisions of the Indenture (the “Additional Notes”), hereby acknowledge that
the Grantor may issue Additional Notes from time to time after the date hereof
and that, pursuant to the terms of the Indenture, the Initial Notes and any
Additional Notes will be treated as part of a single class for all purposes
under the Indenture.  Accordingly,
anything contained herein to the contrary notwithstanding, (a) upon the
issuance of any Additional Notes (i) for all purposes under this Agreement the
term “Notes” shall thereafter include such Additional Notes; provided
that any references herein to the first six scheduled interest
payments due on the Notes shall mean, with respect to such Additional Notes,
only such

 

19

 

number,
if any, of the first six scheduled interest payments on the Notes as shall then
remain at the time such Additional Notes are originally issued (such number, if
any, of the first six scheduled interest payments on the Notes that shall
remain at such time being the “Covered Interest Payments” in respect of such
Additional Notes), (ii) in the event that any Additional Notes are issued prior
to such time as the first six scheduled interest payments on the Notes shall
have been paid in full, the Grantor shall purchase or cause to be purchased,
for the account of the Pledged Securities Intermediary for credit to the Pledge
Account, additional security entitlements with respect to U. S. Government
Securities (such security entitlements being, collectively, the “Additional
Pledged Securities”) in an amount that will be sufficient, upon receipt of the
scheduled interest and principal payments in respect thereof, to provide for
the payment of all Covered Interest Payments in respect of such Additional
Notes, and (iii) for all purposes under this Agreement (including without
limitation Section 4(b)) the term “Pledged Securities” shall thereafter
include any such Additional Pledged Securities, and (b) as provided in
Section 15.7, in connection with the issuance of any Additional Notes, the
parties hereto shall be permitted to enter into such amendments or supplements
to this Agreement as may be necessary or advisable in order to give effect to
the provisions of this Section 16 without the consent of the Holders of
the Initial Notes or the Holders of any Additional Notes that are outstanding
at the time of such issuance.  For the
avoidance of doubt and without limiting the generality of the foregoing, the
Grantor and the Trustee, on behalf of the Holders of the Notes, hereby
acknowledge and agree that the Holders of the Initial Notes and the Holders of
any Additional Notes shall be entitled to share ratably in the benefits of this
Agreement.  In the event that the
Grantor shall issue Additional Notes on more than one occasion, then the
provisions of this Section 16 shall apply to such successive issuances of
Additional Notes, mutatis mutandis.

 

20

IN
WITNESS WHEREOF, the Grantor, the Trustee and the Pledged Securities
Intermediary have each caused this Agreement to be duly executed and delivered
as of the date first above written.

 

	
   

  	
  Grantor:

  
	
   

  	
   

  
	
   

  	
  NEKTAR THERAPEUTICS

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ajit S. Gill

  	
   

  	 

	
  :

  	
   

  	
  Name: Ajit S. Gill

  
	
   

  	
   

  	
  Title: Chief Executive Officer and President

  
	
   

  	
   

  	
   

  
	
   

  	
  Trustee:

  
	
   

  	
   

  
	
   

  	
  J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Nagy

  	
   

  	 

	
   

  	
   

  	
  Name:  James Nagy

  
	
   

  	
   

  	
  Title:  Assistant Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  Pledged Securities Intermediary:

  
	
   

  	
   

  
	
   

  	
  J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Nagy

  	
   

  	 

	
   

  	
   

  	
  Name:  James Nagy

  
	
   

  	
   

  	
  Title:  Assistant Vice
  President

  
							

 

21

 

SCHEDULE I

 

PLEDGED SECURITIES

	
  SECURITY

  	
   

  	
  CUSIP NO.

  	
   

  	
  MATURITY

  	
   

  	
  PRINCIPAL

  AMOUNT AT

  MATURITY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United States Treasury

  	
   

  	
  912820DJ3

  	
   

  	
  11/15/03

  	
   

  	
  227,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FU9

  	
   

  	
  05/15/04

  	
   

  	
  504,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FV7

  	
   

  	
  11/15/04

  	
   

  	
  504,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FW5

  	
   

  	
  05/15/05

  	
   

  	
  504,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FX3

  	
   

  	
  11/15/05

  	
   

  	
  504,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FY1

  	
   

  	
  05/15/06

  	
   

  	
  504,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912820DJ3

  	
   

  	
  11/15/03

  	
   

  	
  95,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FU9

  	
   

  	
  05/15/04

  	
   

  	
  210,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FV7

  	
   

  	
  11/15/04

  	
   

  	
  210,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FW5

  	
   

  	
  05/15/05

  	
   

  	
  210,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FX3

  	
   

  	
  11/15/05

  	
   

  	
  210,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FY1

  	
   

  	
  05/15/06

  	
   

  	
  210,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912820DJ3

  	
   

  	
  11/15/03

  	
   

  	
  80,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FU9

  	
   

  	
  05/15/04

  	
   

  	
  176,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FV7

  	
   

  	
  11/15/04

  	
   

  	
  176,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FW5

  	
   

  	
  05/15/05

  	
   

  	
  176,000

  	
   

  
	
  United States Treasury

  	
   

  	
  912833FX3

  	
   

  	
  11/15/05

  	
   

  	
  176,000

  	
   

  
	
  United
  States Treasury

  	
   

  	
  912833FY1

  	
   

  	
  05/15/06

  	
   

  	
  176,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,852,000

  	
   

  

 

22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]