Document:

Exhibit 10.6

 

EARTHLINK, INC.

EQUITY PLAN FOR NON-EMPLOYEE DIRECTORS

(as amended effective October 23, 2003)

 

Restricted Stock Unit Agreement

 

No. of Restricted
Stock

Units Awarded Hereunder:

 

THIS
RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) dated as of the           
day of                   ,
200    , between EarthLink, Inc., a Delaware
corporation (the “Company”), and                                       
(the “Participant”) is made pursuant and subject to the provisions of the
Company’s Equity Plan for Non-Employee Directors (as amended effective October 23,
2003) (the “Plan”), a copy of which is attached hereto.  All terms used herein that are defined in the
Plan have the same meaning given them in the Plan.

 

1.                                        Award
of Units.  Pursuant to the Plan, the
Company, on                   
    , 200     (the “Date of Award”),
awarded to the Participant                     
Restricted Stock Units, each Restricted Stock Unit corresponding to one share
of the Company’s $0.01 par value Common Stock (this “Award”).  Subject to the terms and conditions of the
Plan, each Restricted Stock Unit represents an unsecured promise of the Company
to deliver, and the right of the Participant to receive, one share of the $0.01
par value common stock of the Company (the “Common Stock”) at the time and on
the terms and conditions set forth herein. 
As a holder of Restricted Stock Units, the Participant has only the
rights of a general unsecured creditor of the Company.

 

2.                                        Terms
and Conditions.  This Award is
subject to the following terms and conditions:

 

(a)                                  Expiration
Date.  This Award shall expire at
11:59 p.m. on                   ,
20     (the “Expiration Date”).

 

(b)                                 Vesting
of Award.

 

(i)                                     In
General.  Except as otherwise
provided below, twenty five percent (25%) of the outstanding Restricted Stock
Units shall become nonforfeitable and payable on the first annual anniversary
of the Date of Award and an additional twenty five percent (25%) of the
Restricted Stock Units shall become payable on each subsequent annual anniversary
thereafter until One Hundred percent (100%) of the Restricted Stock Units have
become nonforfeitable and payable, provided the Participant is still serving as
a Non-Employee Director at each such time.

 

(ii)                                  Change
in Control.  Outstanding Restricted
Stock Units that are not then nonforfeitable and payable shall become
nonforfeitable and payable immediately before the consummation of a Change in
Control, provided the Participant is still serving as a Non-Employee Director
at such time.

 

 

(iii)                               Vesting
Date.  Outstanding Restricted Stock
Units shall be forfeitable until they become nonforfeitable and payable as
described above.  Each date upon which
Restricted Stock Units become nonforfeitable and payable shall be referred to
as a “Vesting Date” with respect to such number of Restricted Stock Units.

 

(c)                                  Settlement
of Award.  Subject to the terms of
this Section 2 and Section 3 below and except to the extent the
Participant defers receipt of such shares of Common Stock pursuant to Section 9
below, the Company shall issue to
the Participant one share of Common Stock for each Restricted Stock Unit that
becomes nonforfeitable and payable under Section 2(b) above and shall
deliver to the Participant certificates representing such Shares as soon as
practicable after the respective Vesting Date. 
As a condition to the settlement of the Award, the Participant shall be
required to pay any required withholding taxes attributable to the Award in
cash or cash equivalent acceptable to the Board.  The Company may allow the Participant to
satisfy any such applicable withholding taxes (i) by allowing the
Participant to deliver shares of Common Stock that the Participant has owned
for at least six months valued at their Fair Market Value on the day preceding
such date, (ii) through a cashless exercise through a broker, (iii) by
such other medium of payment as the Company shall authorize, or (iv) by
any combination of the allowable methods of payment set forth herein.

 

3.                                        Termination
of Award.  Outstanding Restricted Stock
Units that have not become nonforfeitable and payable prior to the Expiration
Date shall expire and may not become nonforfeitable and payable after such
time.  Additionally, any Restricted Stock
Units that have not become nonforfeitable and payable on or before the
termination of the Participant’s service as a director of the Company shall
expire and may not become nonforfeitable and payable after such time.

 

4.                                        Shareholder Rights.  The Participant shall not have any rights as
a shareholder with respect to shares of Common Stock subject to any Restricted
Stock Units until issuance of the certificates representing such shares of
Common Stock.  The Company may include on
any certificates representing shares of Common Stock issued pursuant to this
Award such legends referring to any representations, restrictions or any other
applicable statements as the Company, in its discretion, shall deem
appropriate.

 

5.                                        Nontransferability.  Except as described below, this Award is
nontransferable except by will or the laws of descent and distribution.  If this Award is transferred by will or the
laws of descent and distribution, the Award must be transferred in its entirety
to the same person or persons or entity or entities.  Notwithstanding the foregoing, the Participant,
at any time prior to the Participant’s death, may transfer all or any portion
of this Award to a Permitted Transferee. 
In that event, the Permitted Transferee will be entitled to all the
rights of the Participant with respect to the transferred Award (except that
such Permitted Transferee may not assign the Award other than by will or the
laws of descent and distribution), and such portion of the Award shall continue
to be subject to all of the terms, conditions and restrictions applicable to
the Award as set forth herein and in the Plan immediately prior to the
effective date of the transfer.  Any such
transfer will be permitted only if (i) the Participant does not receive
any consideration for the transfer and (ii) the Board expressly approves
the transfer.  Any such transfer shall be
evidenced by an appropriate written document that the Participant executes and
the Participant shall deliver a copy thereof to the Board on or prior to the
effective date of the

 

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transfer.  No right or interest of the Participant in
this Award shall be liable for, or subject to, any lien, liability or
obligation of the Participant.

 

6.                                        Representation.  In connection with the acquisition of this
Award, the Participant represents and warrants that it is the Participant’s
intent to continue to serve as a director of the Company for the remainder of
Participant’s term as a director during which this Award is granted.

 

7.                                        Cash
Dividends.  For so long as the
Participant holds outstanding Restricted Stock Units, if the Company pays any
cash dividends on its Common Stock, then the Company in its discretion (a) may
pay the Participant in cash for each outstanding Restricted Stock Unit covered
by this Award as of the record date for such dividend, less any required
withholding taxes, the per share amount of such dividend or (b) may
increase the number of outstanding Restricted Stock Units covered by this Award
by the number of Restricted Stock Units, rounded down to the nearest whole
number, equal to (i) the product of the number of the Participant’s
outstanding Restricted Stock Units as of the record date for such dividend
multiplied by the per share amount of the dividend divided by (ii) the
Fair Market Value of a share of Common Stock on the payment date of such
dividend.  In the event the Company
awards additional Restricted Stock Units pursuant to this Section 7, such
Restricted Stock Units shall be subject to the same terms and conditions set
forth in the Plan and herein as the outstanding Restricted Stock Units with
respect to which they were granted. 
Notwithstanding the foregoing, the Company in its sole discretion may
choose not to pay the cash amounts described above and not to increase the
number of outstanding Restricted Stock Units covered by this Award, and this Section 7
shall not constitute any agreement or commitment that the Company take any such
actions.

 

8.                                        Change
in Capital Structure.  The terms of
this Award shall be adjusted in accordance with the terms and conditions of the
Plan if the Company effects one or more stock dividends or stock splits.  If there is a subdivision or consolidation of
shares or other similar change in capitalization other than as a result of
stock dividends or stock splits, the Board may adjust the terms of this Award
to the extent the Board in its discretion may consider appropriate.

 

9.                                        Deferral
of Common Stock.  If the Participant
is eligible to participate in the Deferred Compensation Program, then the
Participant may elect to defer the receipt of Common Stock issuable pursuant to
this Award in accordance with rules the Board prescribes for the Deferred
Compensation Program.  If the Participant
elects to defer the receipt of Common Stock hereunder, the shares of Common
Stock shall be deferred and credited under the Deferred Compensation Program
and shall become payable and issuable pursuant to the terms and at such time or
times as set forth in the Deferred Compensation Program, but will be paid, if
at all, only in shares of Common Stock.

 

10.                                  Golden
Parachute Provisions.

 

(a)                                  If
any payment to the Participant hereunder or in conjunction with any other
payment pursuant to any other agreement, policy, plan or program would subject
the Participant to an excise tax imposed by Code Section 4999 or to any
similar tax imposed by state or local law or any related interest or penalties
(such tax or taxes, together with any such interest or penalties, being
hereinafter collectively referred to as the “Excise Tax”), then the payments

 

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provided under this
Agreement shall be reduced (but not below zero) if, and only to the extent
that, such reduction will allow the Participant to receive a greater “Net After
Tax Amount” than the Participant would receive absent any such reduction.  “Net After Tax Amount” means the amount of
any Parachute Payments (as defined in (b) below) or Capped Payments (as
defined in (c) below), as applicable, net of taxes imposed under Code
Sections 1, 3101(b) and 4999 and any State or local income taxes
applicable to the Participant on the date of payment.  The determination of the Net After Tax Amount
shall be made using the highest combined effective rate imposed by the
foregoing taxes on income of the same character as the Parachute Payments or
Capped Payments, as applicable, in effect on the date of payment.

 

(b)                                 The
independent accounting firm that the Company, in its sole discretion, engages
(the “Accounting Firm”) will first determine the amount of any “Parachute
Payments” that are payable to the Participant. 
“Parachute Payment” means a payment that is described in Code Section 280G(b)(2),
determined in accordance with Code Section 280G and the regulations
promulgated or proposed thereunder.  The
Accounting Firm also will determine the Net After Tax Amount attributable to
the Participant’s total Parachute Payments.

 

(c)                                  The
Accounting Firm will next determine the largest amount of payments that may be
made to the Participant without subjecting the Participant to the Excise Tax
(the “Capped Payments”).  Thereafter, the
Accounting Firm will determine the Net After Tax Amount attributable to the
Capped Payments.

 

(d)                                 The
Participant then will receive the total Parachute Payments or the Capped
Payments, whichever provides the Participant with the higher Net After Tax
Amount.  If the Participant will receive
the Capped Payments (i.e. some amount less than the total Parachute Payments),
the total Parachute Payments will be adjusted by first reducing the amount of
any benefits under this Agreement or the noncash benefits under any other plan,
agreement or arrangement (with the source of the reduction to be directed by
the Participant) and then by reducing the amount of any cash benefits under any
other plan, agreement or arrangement (with the source of the reduction to be
directed by the Participant).  The
Accounting Firm will notify the Participant and the Company if it determines
that the Parachute Payments must be reduced and will send the Participant and
the Company a copy of its detailed calculations supporting that determination.

 

(e)                                  As
a result of the uncertainty in the application of Code Sections 280G and 4999
at the time that the Accounting Firm makes its determinations under this Section 10,
it is possible that amounts will have been paid or distributed to the
Participant that should not have been paid or distributed under this Section 10
(“Overpayments”), or that additional amounts should be paid or distributed to
the Participant under this Section 10 (“Underpayments”).  If the Accounting Firm determines, based on
either the assertion of a deficiency by the Internal Revenue Service against
the Company or the Participant, which assertion the Accounting Firm believes
has a high probability of success or controlling precedent or substantial
authority, that an Overpayment has been made, that Overpayment will be treated
for all purposes as a loan that the Participant must repay to the Company
together with interest at the applicable federal rate under Code Section 7872(f)(2);
provided, however, that no loan will be deemed to have been made and no amount
will be payable by the Participant to the Company unless, and then only to the
extent that, the deemed loan and payment would either reduce the amount on
which the

 

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Participant is subject to
tax under Code Sections 1, 3101 or 4999 or generate a refund of such
taxes.  If the Accounting Firm
determines, based upon controlling precedent or other substantial authority,
that an Underpayment has occurred, the Accounting Firm will notify the
Participant and the Company of that determination and the amount of that
Underpayment will be paid to the Participant promptly by the Company.

 

(f)                                    The
fees and expenses of the Accounting Firm for its services in connection with
the determinations and calculations contemplated by the preceding subsections
shall be borne by the Company.  If such
fees and expenses are initially paid by Participant, the Company shall reimburse
Participant the full amount of such fees and expenses within five business days
after receipt from Participant of a statement therefor and reasonable evidence
of Participant’s payment thereof.

 

(g)                                 The
Company and Participant shall each provide the Accounting Firm access to and
copies of any books, records and documents in the possession of the Company or
Participant, as the case may be, reasonably requested by the Accounting Firm,
and otherwise cooperate with the Accounting Firm in connection with the
preparation and issuance of the determinations and calculations contemplated by
the preceding subsections.  Any
determination by the Accounting Firm shall be binding upon the Company and the
Participant.

 

(h)                                 The
federal, state and local income or other tax returns filed by the Participant
shall be prepared and filed on a consistent basis with the determination of the
Accounting Firm with respect to the any such Excise Tax payable by
Participant.  The Participant, at the
request of the Company, shall provide the Company true and correct copies (with
any amendments) of the Participant’s federal income tax returns as filed with
the Internal Revenue Service and corresponding state and local tax returns, if
relevant, as filed with the applicable taxing authority, and such other
documents reasonably requested by the Company, evidencing such conformity.

 

11.                                  Notice.  Any notice or other communication given
pursuant to this Agreement, or in any way with respect to the Award, shall be
in writing and shall be personally delivered or mailed by United States
registered or certified mail, postage prepaid, return receipt requested, to the
following addresses:

 

If to the Company:                                             EarthLink, Inc.

1375 Peachtree Street - Level A

Atlanta, Georgia 30309

Attention:  General Counsel

 

If to the Participant:

 

 

 

12.                                  No
Right to Continued Service.  Neither
the Plan, the granting of this Award nor any other action taken pursuant to the
Plan or this Award constitutes or is evidence of any agreement or
understanding, express or implied, that the Company will retain the Participant
as a director for any period of time or at any particular rate of compensation.

 

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13.                                  Participant
Bound by Plan.  The Participant
hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions of the Plan.

 

14.                                  Binding
Effect.  Subject to the limitations
stated above and in the Plan, this Agreement shall be binding upon and inure to
the benefit of the distributees, legatees and personal representatives of the
Participant and the successors of the Company.

 

15.                                  Conflicts.  In the event of any conflict between the
provisions of the Plan and the provisions of this Agreement, the provisions of
the Plan shall govern.  All references
herein to the Plan shall mean the Plan as in effect on the date hereof.

 

16.                                  Counterparts.  This Agreement may be executed in a number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one in the same instrument.

 

17.                                  Miscellaneous.  The parties agree to execute such further
instruments and take such further actions as may be necessary to carry out the
intent of the Plan and this Agreement. 
This Agreement and the Plan shall constitute the entire agreement of the
parties with respect to the subject matter hereof.

 

18.                                  Governing
Law.  This Agreement shall be
governed by the laws of the State of Delaware, except to the extent federal law
applies.

 

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IN
WITNESS WHEREOF, the Company has caused this Agreement to be signed by a duly
authorized officer, and the Participant has affixed his signature hereto.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  EARTHLINK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Participant’s
  Name]

  
					

 

7Exhibit 10.1

EXCHANGE
AGREEMENT

 

This Exchange Agreement (this “Agreement”) is made as
of the later of the dates set forth opposite the parties’ signatures (the “Agreement
Date”) by and between Vertex Pharmaceuticals Incorporated, a Massachusetts
corporation (the “Company”), and Akanthos Arbitrage Master Fund, L.P., a Cayman
Islands exempted limited partnership (the “Investor”).

 

WHEREAS:  The Company originally issued $345,000,000 in
aggregate principal amount of 5% Convertible Subordinated Notes due 2007 (the “Notes”);

 

WHEREAS:  The
Investor is the holder of the Notes described in Section 2(b) (the “Exchange
Notes”); and

 

WHEREAS:  The
Investor has indicated to the Company its desire to exchange the Exchange Notes
for Common Stock of the Company (the “Common Stock”) and, after negotiation between the
parties hereto, such parties have agreed to affect such exchange on the terms
and conditions hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the premises, the mutual covenants and agreements herein
contained and other valuable consideration, the receipt and adequacy whereof is
hereby acknowledged, the parties hereto agree as follows:

Section 1.               Agreement to Exchange
Securities

(a)           Exchange
of Securities.  On the terms and
subject to the conditions set forth herein, the Investor agrees to transfer, or
cause to be transferred, to the Company all of its right, title and interest in
and to the Exchange Notes on the following basis: in exchange for the Exchange
Notes, a number of shares of freely tradable Common Stock (the “Exchanged
Shares”) equal to (i) 99% of the principal amount of the Exchange Notes plus
100% of the accrued and unpaid interest on the Exchange Notes, divided by
(ii) the Determination Price.

(b)           Determination
Price.  The Determination Price shall
be equal to 93% of the lesser of (i) the arithmetic average of the closing bid
prices of the Common Stock on the Agreement Date and for the 9 consecutive
trading days immediately preceding the Agreement Date, and (ii) the closing bid
price of the Common Stock on the Agreement Date.

(c)           Fractional
Shares.  In lieu of issuing
fractional shares, the Company shall issue the highest whole number of
Exchanged Shares according to the formula set forth in Section 1.1(a) plus cash
in an amount equal to the fraction of an Exchanged Share to which the Investor
would otherwise be entitled multiplied by the Determination Price.

(d)           Closing.  The completion of the transactions
contemplated by this Agreement (the “Closing”) shall take place as soon as
practical and, in any event, no later than September 9, 2005, or such other
date as is agreed upon by the parties (the “Closing Date”), as follows:

(i)            The Investor shall deliver or cause to be delivered the
Exchange Notes to the Company or the Company’s agent in such manner as shall be
acceptable to the Company and effective to convey all right, title and interest
of the Investor in the Exchange Notes

 

 

to the Company against
delivery of the Exchanged Shares by the Company through the Depositary Trust
Company to Morgan Stanley & Co, DTC # 050, FFC: Akanthos Arbitrage Fund,
Acct: 38C5591.

 

(ii)           The
Company shall pay the Investor by wire transfer of immediately available funds
an amount equal to the cash value of any fractional Exchanged Share, determined in accordance with the provisions of
Section 1(c).

 

Section 2.               Representations
and Warranties

(a)           Mutual
Representations and Warranties.  Each
party hereto hereby makes the following representations and warranties to the
other party hereto as follows:

(i)            It is a corporation or other entity
duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization.

(ii)           (x) It has full power and authority
to enter into this Agreement and to consummate the transactions contemplated
hereby, and (y) the person who has executed this Agreement is duly authorized
to do so and thereby bind the party on whose behalf he or she is purporting to
sign.

(iii)          This Agreement is its valid and
binding agreement, enforceable against it in accordance with its terms, subject
to bankruptcy and similar laws and to equitable principles.

(iv)          Neither the execution and delivery of
this Agreement, nor the consummation of the transactions contemplated hereby,
will violate, result in a breach of any of the terms or provisions of,
constitute a default under, accelerate any obligations under, or conflict with
(x) its certificate of incorporation or bylaws (or other organizational
documents) or any agreement, indenture or other instrument to which it is a
party or by which it or its properties are bound, (y) any judgment, decree,
order or award of any court, governmental body or arbitrator to which it is
subject, or (z) any law, rule or regulation applicable to it.

(v)           It has not, directly or indirectly,
paid any commission or other remuneration to any person for soliciting the
exchange of the Exchange Notes for Exchanged Shares as contemplated by this
Agreement.

(b)           Representations
and Warranties of the Investor.  The
Investor hereby represents and warrants to the Company that it

(i) is the sole legal and beneficial
owner of the Exchange Notes, and, upon the Closing, the Company will acquire
the Exchange Notes free and clear of any liens, encumbrances, pledges, security
interests or other restrictions or claims of third parties, other than any of
the foregoing created by the Company;

(ii) is not an affiliate of the
Company;

(iii) holds the following Exchange
Notes that were acquired before September 1, 2005 in the public market and are
free of restrictive legend: $11,518,000 principal amount of  Notes (CUSIP: 92532F AD 2);

 

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(iv) has had such opportunity as it has deemed
adequate to obtain from representatives of 
the Company such information as is necessary to permit it to evaluate
the merits and risks of an investment in the Exchanged Shares;

 

(v) has sufficient experience in business, financial
and investment matters to be able to evaluate the risks involved in the
acquisition of the Exchanged Shares issued in respect of the Exchange Notes and
to make an informed investment decision with respect to such acquisition; and

 

(vi) on September 8, 2005, it (a) did not and will not, directly or indirectly,
issue, offer, sell, agree to issue, offer or sell, solicit offers to
purchase, grant any call option, warrant or other right to purchase, purchase any put option or other right
to sell, pledge, borrow, assign or otherwise dispose of any Relevant Security (as defined below), and (b) did not and
will not, directly or indirectly, establish or increase any “put equivalent
position” or liquidate or decrease any “call equivalent position” with respect
to any Relevant Security (in each case within the meaning of Section 16 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules
and regulations promulgated thereunder) with respect to any Relevant
Security, or otherwise enter into any
swap, derivative or other transaction or arrangement that transfers to another,
in whole or in part, any economic consequence of ownership of a Relevant
Security, whether or not such transaction is to be settled by delivery of
Relevant Securities, other securities, cash or other consideration.    As
used herein, the term “Relevant Security” means the Common Stock, any other
equity security of the Company and any security convertible into, or
exercisable or exchangeable for, the Common Stock or any other such equity
security.

 

(c)           Representations
and Warranties of the Company.  The
Company hereby represents and warrants to the Investor that upon issuance, the
Exchanged Shares will be duly and validly authorized and issued, fully paid and
nonassessable, and that the Investor will acquire such Common Stock free and
clear of any liens, encumbrances, pledges, security interests or other
restrictions or claims of third parties, other than any of the foregoing
created by the Investor.  The Company
represents and warrants to the Investor that the Exchanged Shares to be issued
in exchange for the Exchange Notes shall be issued pursuant to a valid
exemption from registration under Section 3(a)(9) of the Securities Act of
1933, as amended, in order to make them freely salable into the public market
in the hands of the Investor.

(d)           Survival
of Representations and Warranties. 
All representations, warranties and agreements of each party hereto
shall survive the Closing.

Section 3.               Miscellaneous

(a)           Further
Assurances.  Each party hereto shall
properly execute and deliver such further agreements and instruments, and take
such further actions, as the other party may reasonably request in order to
carry out the purposes and intent of this Agreement.

(b)           Exclusivity.  The Company hereby agrees that concurrently
with the Closing and for a 90 day period beginning on the Closing Date, the
Company will not engage in any transaction or transactions that would result in
the exchange of Notes with an aggregate principal amount in excess of
$40,450,000 (including the transactions contemplated by this Agreement, which
shall not exceed such amount).

(c)           Confidentiality.  The parties hereto agree to keep confidential
and to not disclose the terms, provisions, or existence of this Agreement,
except as the parties reasonably believe such disclosure is required by
applicable law, provided, however, that the Company shall be entitled, without
the prior approval of the Investor, to make any press release or other public
disclosure with respect to such transactions as is required by applicable law
and regulations, including the Exchange Act and the rules

 

3

 

and regulations promulgated thereunder, including the public
filing of this Agreement (although the Investor shall be consulted by the
Company in connection with any such press release or other public disclosure
prior to its release and shall be provided with a copy thereof).

(d)           Notices.  All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed given if
delivered personally, by facsimile transmission (with subsequent letter
confirmation by mail), by overnight courier or two days after being mailed by
certified or registered mail, postage prepaid, return receipt requested, to the
parties, their successors in interest or their assignees at the following
addresses, or at such other addresses as the parties may designate by written
notice in the manner aforesaid:

If to
the Investor:                                                   Akanthos Arbitrage Master Fund, L.P.

c/o Akanthos Capital Management, LLC

21700 Oxnard Street, Suite 1520

Woodland Hills, California 91367

Facsimile: 818-883-8271

 

If to the Company:                                             Vertex Pharmaceuticals Incorporated

130 Waverly Street

Cambridge, Massachusetts 02139

Attention: The Office of General Counsel

Facsimile: 617-444-6483

 

(e)           Assignability
and Parties in Interest. This Agreement shall not be assignable by any of
the parties hereto without the consent of the other party hereto.  This Agreement shall inure to the benefit of
and be binding upon the parties and their respective permitted successors and
assigns.

(f)            Governing
Law. This Agreement shall be governed by and construed and enforced in
accordance with the internal substantive law, and not the law pertaining to
conflicts of law, of the State of New York.

(g)           Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

(h)           Complete
Agreement.  This Agreement is an
integrated agreement containing the entire agreement between the parties hereto
with respect to the subject matter hereof and shall supersede all previous and
all contemporaneous oral or written negotiations, commitments or
understandings.

(i)            Modifications,
Amendments and Waiver.  This
Agreement may be modified, amended otherwise supplemented or terminated only by
a writing signed by the party against whom it is sought to be enforced.  No waiver of any right or power hereunder
shall be deemed effective unless and until a writing waiving such right or
power is executed by the party waiving such right or power.

(j)            No
Third Party Beneficiaries. There are no third party beneficiaries under
this Agreement or intended by any party hereto.

(k)           Expenses.  Each party hereto shall bear its own costs
and expenses, including, without limitation, attorneys’ fees, incurred in connection
with this Agreement and the transactions contemplated hereby.

 

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(l)            Contract
Interpretation and Construction of Agreement.  This Agreement is the joint drafting product
of the Company and the Investor, and each provision has been subject to
negotiation and agreement with the advice of counsel and shall not be construed
for or against either party as the drafter thereof.

 

5

 

                IN
WITNESS WHEREOF, each of the Company and the Investor have caused this
Agreement to be signed by their respective duly authorized officers as of the
date first written above.

 

	
   

  	
  Vertex
  Pharmaceuticals Incorporated

  
	
   

  	
   

  	
   

  
	
  Date: September
  8, 2005

  	
  By:

  	
  /s/ JOSHUA S. BOGER

  
	
   

  	
   

  	
  Joshua S. Boger,
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Akanthos Arbitrage Master Fund, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Akanthos Capital
  Management, LLC,

  
	
   

  	
   

  	
  its general
  partner

  
	
   

  	
   

  	
   

  
	
  Date: September
  8, 2005

  	
  By:

  	
  /s/ MICHAEL KAO

  
	
   

  	
   

  	
  Name:

  	
  Michael Kao

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]