Document:

Exhibit
4.2

EXECUTION
COPY

 

 

 

DEUTSCHE
BANK SECURITIES INC.

 

 

 

$210,000,000 AGGREGATE
PRINCIPAL AMOUNT

UNITED THERAPEUTICS
CORPORATION

0.50% CONVERTIBLE SENIOR
NOTES

DUE OCTOBER 15, 2011

Resale Registration
Rights Agreement

dated October 30, 2006

RESALE REGISTRATION RIGHTS AGREEMENT, dated
as of October 30, 2006, between United Therapeutics Corporation, a Delaware
corporation (together with any successor entity, herein referred to as the “Company”), and Deutsche Bank Securities
Inc. as the initial purchaser (the “Initial
Purchaser”) under the Purchase Agreement (as defined below).

Pursuant to the Purchase Agreement, dated as
of October 24, 2006, between the Company and the Initial Purchaser (the “Purchase Agreement”), relating to the
initial placement (the “Initial Placement”)
of the Notes (as defined below), the Initial Purchaser has agreed to purchase
from the Company $210,000,000 ($250,000,000 if the Initial Purchaser exercises
its over-allotment option in full) in aggregate principal amount of 0.50%
Convertible Senior Notes due October 15, 2011 (the “Notes”).  The Notes will
be convertible, subject to the terms thereof, into fully paid, nonassessable
shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”) together with the rights
related to such Common Stock to the extent provided in the Rights Agreement
dated as of December 17, 2000 between the Company and The Bank of New York, as
rights agent.  To induce the Initial
Purchaser to purchase the Notes, the Company has agreed to provide the
registration rights set forth in this Agreement pursuant to Section 5(h)
of the Purchase Agreement.

The parties hereby agree as follows:

1.     Definitions.
Capitalized terms used in this Agreement without definition shall
have their respective meanings set forth in the Purchase Agreement.  As used in this
Agreement, the following capitalized terms shall have the following meanings:

“Affiliate” of any specified person means any other person
which, directly or indirectly, is in control of, is controlled by, or is under
common control with, such specified person. 
For purposes of this definition, control of a person means the power,
direct or indirect, to direct or cause the direction of the management and
policies of such person whether by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

“Agreement”:  This Resale Registration Rights Agreement.

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

“Business
Day”:  The definition of “Business
Day” in the Indenture.

“Closing
Date”:  The date of the first
issuance of the Notes.

“Commission”:  Securities and Exchange Commission.

“Common
Stock”:  As defined in the
preamble hereto.

 

 

“Company”:  As defined in the preamble hereto.

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

“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.

“Free Writing
Prospectus”:  A
free writing prospectus, as defined in Rule 405 under the Securities Act.

“Holder”:  A Person who owns, beneficially or otherwise,
Transfer Restricted Securities.

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

“Indenture”:  The Indenture, dated as of October 30, 2006
between the Company and The Bank of New York, a New York banking 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.

“Initial
Placement”:  As defined in the
preamble hereto.

“Initial
Purchaser”:  As defined in the
preamble hereto.

“Issuer Free
Writing Prospectus”: 
An issuer free writing prospectus, as defined in Rule 433 under the
Securities Act.

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

“Liquidated
Damages Payment Date”:  Each
April 15 and October 15.

“Losses”:  As defined in Section 6(a) hereof.

“Majority
of Holders”:  Holders holding
over 50% of the aggregate principal amount of Notes outstanding; provided that,
for the purpose of this Agreement, a holder of shares of Common Stock which
constitute Transfer Restricted Securities shall be deemed to hold an aggregate
principal amount of the Notes (in addition to the principal amount of the Notes
held by such holder) equal to the quotient of (x) the number of such shares of
Common Stock held by such holder and (y) the conversion rate in effect at the
time of their issuance upon conversion of the Notes as determined in accordance
with the Indenture.

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“Managing
Underwriter”:  The investment
banker or investment bankers and manager or managers that administer an
underwritten offering, if any, conducted pursuant to Section 8 hereof.

“NASD”:  National Association of Securities Dealers,
Inc.

“Notes”:  As defined in the preamble hereto.

“Notice and Questionnaire”
means a written notice executed by the respective Holder and delivered to the
Company containing substantially the information called for by the Selling
Securityholder Notice and Questionnaire attached as Appendix A to the Offering
Memorandum of the Company relating to the Notes.

“Notice
Holder”:  On any date, any
Holder of Transfer Restricted Securities that has delivered a Notice and
Questionnaire to the Company on or prior to such date.

“Permitted
Free Writing Prospectus”:  As defined in Section 9(a) hereof.

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

“Purchase
Agreement”:  As defined in the
preamble hereto.

“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.

“Record
Holder”:  With respect to any
Liquidated Damages Payment Date, each Person who is a registered holder of the
Notes on the April 1 or October 1, as the case may be, preceding the relevant
Liquidated Damages Payment Date.

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

“Securities
Act”:  Securities Act of 1933,
as amended.

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

“Suspension
Notice”:  As defined in
Section 4(c) hereof.

“Suspension
Period”:  As defined in
Section 4(b)(ii) hereof.

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“TIA”:  Trust Indenture Act of 1939, as amended, and
the rules and regulations of the Commission thereunder, in each case, as in effect
on the date the Indenture is qualified under the TIA.

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

(i)    the date on which the offer
and sale of such Note or such share of Common Stock issued upon conversion has
been effectively registered under the Securities Act and such Note or share of
Common Stock has been 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 is transferred in
compliance with Rule 144 (or any other similar provision then in force) under
the Securities Act or is transferable pursuant to paragraph (k) of Rule 144
under the Securities Act (or any other similar provision then in force);

(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); or

(iv)  the date on which the
holding period in respect of such Note or such share of Common Stock held by
non-affiliates of the Company under Rule 144(k) under the Securities Act, or
any successor provision, has expired.

“underwriter”:  Any underwriter of Transfer Restricted Securities
in connection with an offering thereof under the Shelf Registration Statement.

“Underwritten
Registration”:  A registration
in which Transfer Restricted Securities of the Company are sold to an
underwriter for reoffering to the public.

Unless the context otherwise requires, the
singular includes the plural, and words in the plural include the singular.

2.     Shelf
Registration.

(a)   The
Company shall:

(i)    as promptly as practicable
but in no event more than 180 days after the date hereof cause to be filed a
registration statement pursuant to Rule 415 under the Securities Act or any 

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similar rule that may be adopted by the
Commission (the “Shelf Registration Statement”),
which Shelf Registration Statement shall provide for the resale by each Notice
Holder, on a continuous or delayed basis, of all Transfer Restricted Securities
held by such Notice Holder subject to the terms and conditions hereof and be an
automatic shelf registration if the Company is eligible to use an automatic
shelf registration at the time of the filing;

(ii)   use its commercially
reasonable efforts to cause the Shelf Registration Statement, if not
automatically effective, to become effective under the Securities Act not later
than 180 days after the date hereof (the “Effectiveness
Target Date,” and the date of such effectiveness or availability,
the “Effectiveness Date”); and

(iii)  use its commercially
reasonable efforts to keep the Shelf Registration Statement continuously
effective, supplemented and amended as required by the Securities Act and by
the provisions of Section 4(b) hereof to the extent necessary to ensure that
(A) it is available for resales by Notice Holders entitled, subject to the
terms and conditions hereof, to the benefit of this Agreement and (B) conforms
with the requirements of this Agreement and the Securities Act and the rules
and regulations of the Commission promulgated thereunder as announced from time
to time, for a period (the “Effectiveness
Period”) from the date the Shelf Registration Statement becomes effective
until the date that the Notes and the shares of Common Stock issuable upon
exchange thereof have ceased to be Transfer Restricted Securities.

The Company
shall be deemed not to have used its commercially reasonable efforts to keep
the Shelf Registration Statement effective during the Effectiveness Period if
it voluntarily takes any action that would result in Holders of Transfer
Restricted Securities not being able to offer and sell such securities at any
time during the Effectiveness Period, unless such action is (x) required by
applicable law or otherwise undertaken by the Company in good faith and for
valid business reasons (not including avoidance of the Company’s obligations
hereunder), including the acquisition or divestiture of assets, or (y) permitted
by Section 4(b)(ii) hereof.

(b)   Not
less than 30 days prior to the date upon which it intends to seek effectiveness
of the registration statement, the Company shall mail the Notice and
Questionnaire to the Holders; provided,
however, that delivery of such
Notice and Questionnaire to The Depository Trust Company shall be deemed to
have satisfied the Company’s obligation to mail such Notice and Questionnaire
to the Holders.  Each Holder that 

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becomes a Notice Holder (and provides such additional information as
the Company reasonably may request) no later than the later of 10 days prior to
the filing of the Shelf Registration Statement, if automatically effective, or
the second Business Day before the effectiveness of the Shelf Registration
Statement, if not automatically effective, shall be named as a selling
securityholder in the initial Shelf Registration Statement made available to
Holders.

(c)   If
the Shelf Registration Statement ceases to be effective for any reason at any
time during the Effectiveness Period (other than because all Transfer
Restricted Securities registered thereunder shall have been resold pursuant
thereto or shall have otherwise ceased to be Transfer Restricted Securities),
the Company shall use its commercially reasonable efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof or file or
designate a subsequent Shelf Registration Statement covering the resale of all
of the securities that as of the date of such filing or designation are Transfer
Restricted Securities.  If such a
subsequent Shelf Registration Statement is filed or designated (and is not
already effective), the Company shall use its commercially reasonable efforts
to cause the subsequent Shelf Registration Statement to become effective as
promptly as is practicable after such filing or designation and to keep such
subsequent Shelf Registration Statement continuously effective until the end of
the Effectiveness Period.

(d)   The
Company shall supplement and amend the Shelf Registration Statement if required
by the rules, regulations or instructions applicable to the registration form
used by the Company for such Shelf Registration Statement, if required by the
Securities Act or as reasonably requested by the Initial Purchaser or by the Trustee
on behalf of the Holders of the Transfer Restricted Securities covered by such
Shelf Registration Statement.

(e)   The
Company shall cause the Shelf Registration Statement and the related Prospectus
and any amendment or supplement thereto, as of the effective date of the Shelf
Registration Statement or such amendment or supplement, and any Issuer Free
Writing Prospectus, as of the date thereof, (i) to comply in all material
respects with the applicable requirements of the Securities Act, and (ii) not to
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein (in the case of the Prospectus and any Issuer Free Writing Prospectus,
in light of the circumstances under which they were made) not misleading.

(f)    Each
Holder agrees that if such Holder wishes to sell Transfer Restricted Securities
pursuant to a Shelf Registration Statement and related Prospectus, it will do
so only in accordance with the terms and 

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conditions of this Agreement. 
Each Holder wishing to sell Transfer Restricted Securities pursuant to a
Shelf Registration Statement and related Prospectus from and after the
Effectiveness Date agrees to deliver a Notice and Questionnaire to the Company
at least 10 Business Days prior to any intended distribution of Transfer
Restricted Securities under the Shelf Registration Statement.  From and after the Effectiveness Date, the
Company shall, as promptly as practicable after the date a Notice and Questionnaire
is delivered to it, and in any event upon the later of (x) 10 Business Days
after such date or (y) 10 Business Days after the expiration of any Suspension
Period in effect when the Notice and Questionnaire is delivered or put into
effect:

(i)    if required by applicable
law, file with the Commission a post-effective amendment to the Shelf
Registration Statement or an additional Shelf Registration Statement or prepare
and, if required by applicable law, file with the Commission a supplement to the
related Prospectus or a supplement or amendment to any document incorporated
therein by reference or file any other required document so that the Holder
delivering such Notice and Questionnaire is named as a selling securityholder
in the Shelf Registration Statement and the related Prospectus in such a manner
as to permit such Holder to deliver such Prospectus to purchasers of the
Transfer Restricted Securities in accordance with applicable law and, if the
Company shall file a post-effective amendment to the Shelf Registration
Statement or an additional Shelf Registration Statement, use its commercially
reasonable efforts to cause such post-effective amendment or additional Shelf
Registration Statement, as the case may be, to become effective under the Securities
Act as promptly as is practicable;

(ii)   provide, upon request, such
Holder copies of any documents filed pursuant to Section 2(f)(i); and

(iii)  notify such Holder as
promptly as practicable after the effectiveness under the Securities Act of any
post-effective amendment filed pursuant to Section 2(f)(i);

provided
that if such Notice and Questionnaire is delivered during a Suspension Period,
the Company shall so inform the Holder delivering such Notice and Questionnaire
and shall take the actions set forth in clauses (i), (ii) and (iii) above upon
expiration of the Suspension Period in accordance with Section 4(b).  Notwithstanding anything contained herein to
the contrary, the Company shall be under no obligation to name any Holder that
is not a Notice Holder as a selling securityholder in any Shelf Registration
Statement or related Prospectus.

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3.     Liquidated
Damages.

(a)   If:

(i)    the Shelf Registration
Statement has not been filed and does not become effective prior to or on the
Effectiveness Target Date;

(ii)   the Company has failed to
perform its obligations set forth in Section 2(f) within the time periods
required therein;

(iii)  except as provided in
Section 4(b)(ii) hereof, the Shelf Registration Statement is filed and has
become 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 ten (10) Business Days by (A) a subsequent Shelf Registration
Statement covering the resale of all of the securities that as of the date of
such filing or designation are Transfer Restricted Securities, or (B) a
post-effective amendment to the Shelf Registration Statement, a supplement to
the Prospectus or a report filed with the Commission pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act that cures such failure and, in the case
of a post-effective amendment, is itself immediately declared effective; or

(iv)  Suspension Periods exceed an
aggregate of 30 days within any three-month period or an aggregate of 90 days
in any 12-month period;

(each such event referred to in foregoing clauses (i) through (iv), a “Registration Default”), the Company hereby
agrees to pay interest (“Liquidated Damages”)
with respect to the Transfer Restricted Securities from and including the day
following the Registration Default to but excluding the earlier of (1) the day
on which the Registration Default has been cured and (2) the date the Shelf
Registration Statement is no longer required to be kept effective, accruing to
each holder of Transfer Restricted Securities at a rate equal to 0.50% per
annum of the aggregate principal amount of the Transfer Restricted
Securities.  Holders of Common Stock
issued upon conversion of Notes will not be entitled to any Liquidated Damages
in respect of any Registration Default with respect to such Common Stock.

(b)   All
accrued Liquidated Damages shall be paid in arrears in cash to Record Holders
of Transfer Restricted Securities by the Company on each Liquidated Damages
Payment Date.  Upon the cure of all
Registration Defaults relating to any particular Transfer Restricted 

 8
 

 

Security, the accrual of applicable Liquidated Damages will cease and
accrued and unpaid Liquidated Damages through the date of cure of all such
Registration Defaults shall be paid in cash on the subsequent interest payment
date to the Record Holders of the Transfer Restricted Securities.

All obligations of the Company 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.

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

4.     Registration
Procedures.

(a)   In
connection with the Shelf Registration Statement, the Company shall comply with
all the provisions of Section 4(b) hereof and shall use its commercially
reasonable efforts to effect such registration to permit the sale of the
Transfer Restricted Securities, and pursuant thereto, shall expeditiously
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 Company shall:

(i)            Subject to any
notice by the Company in accordance with this Section 4(b) of the existence of
any fact or event of the kind described in Section 4(b)(iv)(D), use its
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
to be effective and usable for resale of Transfer Restricted Securities during
the Effectiveness Period, the Company shall file promptly a post-effective
amendment to the Shelf Registration Statement or an amendment or supplement to
the related Prospectus or file any other required document, in the case of
clause (A), correcting any such misstatement or omission, and, in the case of
either clause (A) or (B), use its commercially reasonable efforts to cause any
such amendment to become effective and the Shelf Registration 

 9
 

 

Statement and the related Prospectus to become usable for their
intended purposes as soon as practicable thereafter.

(ii)           Notwithstanding
Section 4(b)(i) hereof, the Company may suspend the effectiveness of the Shelf
Registration Statement (each such period, a “Suspension
Period”):

(x) if an event occurs and is continuing as a result of which the Shelf
Registration Statement, the Prospectus, any amendment or supplement thereto, or
any document incorporated by reference therein would, in the Company’s
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

(y) if the Company determines in good faith that the disclosure of a
material event at such time would be seriously detrimental to the Company and
its subsidiaries.

Upon the occurrence of any event described in clauses (x) and (y) of
this Section 4(b)(ii), the Company shall give notice to the Holders that the
availability of the Shelf Registration is suspended and, upon actual receipt of
any such notice, each Holder agrees not to sell any Transfer Restricted
Securities pursuant to the Shelf Registration Statement until such Holder’s
receipt of copies of the supplemented or amended Prospectus provided for in
Section 4(b) hereof or until such Holder is advised in writing by the Company
that the Suspension Period has been terminated. 
The period during which the availability of the Shelf Registration
Statement and any Prospectus is suspended (the “Suspension Period”) shall not exceed 30 days in any
three-month period; provided,
that Suspension Periods shall not exceed an aggregate of 90 days in any
12-month period.  The Company shall not
be required to specify in the written notice to the Holders the nature of the
event giving rise to the Suspension Period.

(iii)          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 Rule 424 under the Securities Act in a timely
manner; and comply with the provisions of the Securities Act with respect to
the disposition of all Transfer Restricted Securities covered by the Shelf
Registration Statement during the applicable period in accordance with the
intended 

 10
 

 

method or methods of distribution by the sellers thereof set forth or
to be set forth in the Shelf Registration Statement or supplement to the
Prospectus.

(iv)  Advise the Notice Holders
and the Initial Purchaser that have provided in writing to the Company a
telephone or facsimile number and address for notices, promptly and, if
requested by such Notice Holders, confirm such advice in writing (which notice
pursuant to clauses (B) through (E) below shall be accompanied by an
instruction to suspend the use of the Prospectus until the Company shall have
remedied the basis for such suspension):

(A)  when
the Prospectus, any Prospectus supplement, any post-effective amendment or any
Issuer Free Writing Prospectus 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 or supplements to the Shelf
Registration Statement, the Prospectus or any Issuer Free Writing Prospectus or
for additional information relating thereto;
provided, however, that
notice of any such request provided to The Depository Trust Company shall be
deemed to have been provided to all of the Notice Holders and the Initial
Purchaser,

(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 any notice
that would prevent its use, 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,

(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 (in the 

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case of the Prospectus, in the light of the circumstances under which
they were made) not misleading, or

(E)   when
any Issuer Free Writing Prospectus includes information that may conflict with
the information contained in the Registration Statement.

(v)           If at any time the Commission shall
issue any stop order suspending the effectiveness of the Shelf Registration
Statement or any notice that would prevent its use, 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 Company shall use its
commercially reasonable efforts to obtain the withdrawal or lifting of such order
at the earliest possible time, including, if necessary, by filing an amendment
to the Shelf Registration Statement or a new Shelf Registration Statement and
using its commercially reasonable efforts to have such amendment or new Shelf
Registration Statement declared effective, and will provide to each Holder who
is named in the Shelf Registration Statement prompt notice of the withdrawal of
any such order or of the filing or effectiveness of any such amendment or new
registration statement.

(vi)          Make available at
reasonable times for inspection by one or more representatives of the Notice
Holders, designated in writing by a Majority of Holders, all of whose Transfer
Restricted Securities are included in the Shelf Registration Statement, and any
attorney or accountant retained by such Notice Holders and any underwriter
participating in any disposition pursuant to the Shelf Registration Statement,
all financial and other records, pertinent corporate documents and properties
of the Company as shall be reasonably necessary to enable them to conduct a
reasonable investigation within the meaning of Section 11 of the Securities
Act, and cause the Company’s officers, directors, managers and employees to
supply all information reasonably requested by any such representative or
representatives of the Notice Holders, attorney or accountant in connection
therewith; provided that the
Company shall only be required to permit such inspection (i) in an underwritten
offering or (ii) in a non-underwritten offering if the Notice Holder of such
Transfer Restricted Securities is advised by counsel that it may have “underwriters’
liability” under the Securities Act in connection with such disposition and
such inspection is used solely for the purposes of establishing a defense to liability
under the securities laws; provided,
further, that any information that is designated by 

 12
 

 

the Company in good faith as confidential at the time of delivery of
such information shall be kept confidential by such persons, unless disclosure
thereof is made in connection with a court, administrative or regulatory
proceeding or required by law, or such information has become available to the
public generally through the Company or through a third party without an
accompanying obligation of confidentiality, and the Company may, at its option,
require all such Notice Holders and representatives to sign a standard
confidentiality agreement in a form acceptable to the Company prior to
permitting access to such information.

(vii)         If requested by any
Notice Holders or the Initial Purchaser, promptly incorporate in the Shelf
Registration Statement or Prospectus, pursuant to a supplement or
post-effective amendment if necessary, such information as such Notice Holders
may reasonably request to have included therein, including, without limitation,
information relating to the “Plan of Distribution” of the Transfer Restricted
Securities.

(viii)        Deliver to each
Notice Holder, without charge, as many copies of the Prospectus (including each
preliminary Prospectus) and any amendment or supplement thereto, and any Issuer
Free Writing Prospectus, as such Persons reasonably may request; subject to
Section 4(b)(ii) and subject to any notice by the Company in accordance with
this Section 4(b) of the existence of any fact or event of the kind described
in Section 4(b)(iv)(B) through (E), the Company hereby consents to the use of
the Prospectus and any amendment or supplement thereto, and any Issuer Free
Writing Prospectus, by each of the Notice Holders in connection with the offering
and the sale of the Transfer Restricted Securities covered by the Prospectus or
any amendment or supplement thereto.

(ix)           Before any public
offering of Transfer Restricted Securities, cooperate with the Notice Holders
and their counsel in connection with the registration and qualification of the
Transfer Restricted Securities under the securities or Blue Sky laws of such
jurisdictions in the United States as the Notice 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 Company 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, other 

 13
 

 

than service of process for suits arising out of the Initial Placement
or any offering pursuant to the Shelf Registration Statement, or (B) to subject
itself to general or unlimited service of process or to taxation in any such
jurisdiction if they are not now so subject.

(x)            Unless any Transfer
Restricted Securities shall be in book-entry form only, cooperate with the
Notice 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 Business Days before any sale of Transfer Restricted Securities.

(xi)           Use its
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 seller or sellers thereof to consummate the disposition of such
Transfer Restricted Securities.

(xii)          Subject to Section
4(b)(ii) hereof, if any fact or event contemplated by Section 4(b)(iv)(B)
through (D) hereof shall exist or have occurred, use its commercially
reasonable efforts to prepare a supplement or post-effective amendment to the
Shelf Registration Statement, related Prospectus (including by means of an
Issuer Free Writing Prospectus), relevant Issuer Free Writing Prospectus or any
document incorporated therein by reference or to file any other required
document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, none of the Registration Statement, the Prospectus or
any Issuer Free Writing Prospectus will 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 (in the case of the Prospectus and any
such Issuer Free Writing Prospectus, in the light of the circumstances in which
they are made) not misleading.

(xiii)         Provide CUSIP
numbers for all Transfer Restricted Securities not later than the Effectiveness
Date and provide the Trustee under the Indenture with certificates for the
Notes that are in a form eligible for deposit with The Depository Trust
Company.

(xiv)        Cooperate and assist
in any filings required to be made with the NASD and in the performance of any
due diligence 

 14
 

 

investigation by any underwriter that is required to be undertaken in
accordance with the rules and regulations of the NASD.

(xv)         Otherwise use its
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.

(xvi)        Make generally
available to its security holders an earnings statement satisfying the
provisions of Section 11(a) of the Securities Act as soon as practicable after
the effective date of the Shelf Registration Statement and in any event no
later than 40 days after the end of the 12-month period (or 75 days, if such
period is a fiscal year) beginning with the first month of the Company’s first
fiscal quarter commencing after the effective date of the Shelf Registration
Statement.

(xvii)       Cause the Indenture
to be qualified under the TIA not later than the effective date of the Shelf
Registration Statement required by this Agreement (or the time when the
registration as to the Notes under the Shelf Registration Statement is required
to become effective hereunder), and, in connection therewith, cooperate with
the Trustee and the holders of Notes to effect such changes to the Indenture as
may be required for such Indenture to be so qualified in accordance with the
terms of the TIA; and execute and use its commercially reasonable efforts to
cause the Trustee thereunder to execute all documents that may be required to
effect such changes and all other forms and documents required to be filed with
the Commission to enable such Indenture to be so qualified in a timely manner.  In the event that any such amendment or
modification referred to in this Section 4(b)(xvii) involves the appointment of
a new trustee under the Indenture, the Company shall appoint a new trustee
thereunder pursuant to the applicable provisions of the Indenture.

(xviii)      Cause all Common
Stock covered by the Shelf Registration Statement to be approved for listing or
quotation, as the case may be, upon official notice of issuance, on each
securities exchange or automated quotation system on which Common Stock is then
listed or quoted.

(xix)         Provide to each
Notice Holder upon written request each document filed with the Commission
pursuant to the requirements of Section 13 and Section 15 of the Exchange Act
after the effective date of the Shelf Registration Statement, unless 

 15
 

 

such document is available through the Commission’s EDGAR system.

(xx)          Use its commercially
reasonable efforts, if the Notes have been rated prior to the initial sale of
such Notes, to confirm such ratings will apply to the Notes covered by the
Shelf Registration Statement.

(xxi)         In connection with
any underwritten offering conducted pursuant to Section 8 hereof, make such
representations and warranties to the Notice Holders of Transfer Restricted
Securities registered thereunder and the underwriters, in form, substance and
scope as are customarily made by issuers to underwriters in primary
underwritten offerings and covering matters including, but not limited to,
those set forth in the Purchase Agreement;

(xxii)        In connection with
any underwritten offering conducted pursuant to Section 8 hereof, obtain
opinions of counsel to the Company and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the
Managing Underwriters) addressed to each Notice Holder and the underwriters, if
any, covering such matters as are customarily covered in opinions requested in
underwritten offerings and such other matters as may be reasonably requested by
such Notice Holders and underwriters;

(xxiii)       In connection with
any underwritten offering conducted pursuant to Section 8, hereof, obtain “comfort”
letters and updates thereof from the independent certified public accountants
of the Company (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the
Company for which financial statements and financial data are, or are required
to be, included in the Shelf Registration Statement), addressed to each Notice
Holder of Transfer Restricted Securities registered thereunder and the
underwriters, in customary form and covering matters of the type customarily
covered in “comfort” letters in connection with primary underwritten offerings;
and

(xxiv)       In connection with
any underwritten offering conducted pursuant to Section 8 hereof, deliver such
documents and certificates as may be reasonably requested by the Majority
Holders and the Managing Underwriters, including those to evidence compliance
with Section 4(b)(iii) hereof and with any 

 16
 

 

customary conditions contained in the Purchase Agreement or other
agreement entered into by the Company.

(xxv)        In connection with
underwritten offering conducted pursuant to Section 8 hereof, the Company
shall, if requested, promptly include or incorporate in a Prospectus supplement
or post-effective amendment to the Shelf Registration Statement such
information as the Managing Underwriters reasonably agree should be included
therein and to which the Company does not reasonably object and shall make all
required filings of such Prospectus supplement or post-effective amendment as
soon as practicable after it is notified of the matters to be included or
incorporated in such Prospectus supplement or post-effective amendment.

(xxvi)       Use its commercially
reasonable efforts to take all other steps necessary to effect the registration
of the Transfer Restricted Securities covered by the Shelf Registration
Statement.

(xxvii)      Enter into customary
agreements (including, if requested, an underwriting agreement in customary
form) and take all other appropriate actions in order to expedite or facilitate
the registration or the disposition of the Transfer Restricted Securities, and
in connection therewith, if an underwriting agreement is entered into, cause
the same to contain indemnification provisions and procedures no less favorable
than those set forth in Section 6 hereof.

The actions set forth in clauses (xxi),
(xxii), (xxiii) and (xxiv) of this Section 4(b) shall be performed at (A) the
effectiveness of the Shelf Registration Statement and each post-effective
amendment thereto; and (B) each closing under any underwriting or similar
agreement as and to the extent required thereunder.

(c)   Each
Notice Holder agrees by acquisition of a Transfer Restricted Security that,
upon receipt of any notice (a “Suspension
Notice”) from the Company of the existence of any fact of the kind
described in Section 4(b)(iv)(B) through (E) hereof, such Holder will forthwith
discontinue disposition of Transfer Restricted Securities pursuant to the Shelf
Registration Statement and use of the Prospectus and any related Free Writing
Prospectuses until:

(i)    such Holder has received
copies of the supplemented or amended Prospectus or applicable Issuer Free
Writing Prospectus contemplated by Section 4(b)(xii) hereof; or

 17

 

(ii)   such Holder is advised in
writing by the Company that the use of the Prospectus and any applicable Issuer
Free Writing Prospectus may be resumed, and has received copies of any
additional or supplemental filings that are incorporated by reference in the
Prospectus; provided, however, that any such document filed and
publicly available through the Commission’s EDGAR system shall be deemed to
have been received by such Holder.

If so directed
by the Company, each Holder will deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies then in such Holder’s
possession, of the Prospectus covering such Transfer Restricted Securities and
any Issuer Free Writing Prospectus that was current at the time of receipt of
such Suspension Notice.

(d)   Each
Holder agrees by acquisition of a Transfer Restricted Security, that no Holder
shall be entitled to sell any of such Transfer Restricted Securities pursuant
to a Registration Statement, or to receive a Prospectus relating thereto, unless
such Holder has furnished the Company with a Notice and Questionnaire as
required pursuant to Section 2(b) or Section 2(f) hereof (including the
information required to be included in such Notice and Questionnaire) and the
information set forth in the next sentence. 
The Company may require each Notice Holder of Notes to be sold pursuant
to the Shelf Registration Statement to furnish to the Company such information
regarding the Holder and the distribution of such Notes as the Company may from
time to time reasonably require for inclusion in such Registration
Statement.  Each Notice Holder agrees
promptly to furnish to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such
Notice Holder not misleading and any other information regarding such Notice
Holder and the distribution of such Transfer Restricted Securities as the
Company may from time to time reasonably request in writing.  The Company may exclude from such Shelf
Registration Statement the Notes of any Holder that unreasonably fails to
furnish such information within a reasonable time after receiving such request.

5.     Registration
Expenses.

All expenses incident to the Company’s performance of or compliance
with this Agreement shall be borne by the Company regardless of whether a Shelf
Registration Statement becomes effective, including, without limitation:

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

 18
 

 

 

(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, Issuer Free Writing
Prospectuses and certificates for the Common Stock to be issued upon conversion
of the Notes) and the Company’s expenses for messenger and delivery services
and telephone;

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

(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
Company.

The Company 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 Company.  The
Company shall pay all expenses customarily borne by issuers in an underwritten
offering as set forth in Section 8(c) hereof.

6.     Indemnification And Contribution.

(a)   The
Company agrees to indemnify and hold harmless each Notice Holder (and the
Initial Purchaser in its capacity as such), its directors, officers, employees
and agents, and each person, if any, who controls any Holder within the meaning
of the Securities Act or the Exchange Act (each, an “Indemnified Holder”), against any loss, claim, damage,
liability or expense, as incurred, or any action in respect thereof (including,
but not limited to, any loss, claim, damage, liability or expense relating to
resales of the Transfer Restricted Securities) (collectively, “Losses”), to which such Indemnified Holder
may become subject, insofar as any such Loss arises out of or is based upon:

(i)    any untrue statement or
alleged untrue statement of a material fact contained in (A) the Shelf
Registration Statement as originally filed or in any amendment thereof, or (B)
any blue sky application or other document or any amendment or supplement
thereto prepared or executed by the Company (or based upon written information
furnished by or on behalf of the Company expressly for use in such blue sky
application or other document or amendment or supplement) filed in any
jurisdiction specifically for 

 19
 

 

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, in each case,
the omission or alleged omission to state therein any material fact required to
be stated therein or necessary to make the statements therein not misleading;
or

(ii)   any untrue statement or
alleged untrue statement of a material fact contained in any Issuer Free
Writing Prospectus, any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto), or the omission or alleged omission therefrom
of a material fact, in each case, necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading,

and to reimburse each Indemnified Holder for any and all expenses
including the reasonable legal fees and disbursements of counsel as such expenses
are reasonably incurred by such Indemnified Holder in connection with
investigating, defending, settling, compromising or paying any such Loss; provided, however, that the foregoing
indemnity agreement shall not apply to any Loss to the extent, but only to the
extent, arising out of or based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such Holder (or its related Indemnified Holder) expressly for use therein.  The indemnity agreement set forth in this
Section 6(a) shall be in addition to any liabilities that the Company may
otherwise have.

The Company also agrees to indemnify as provided in this Section 6(a)
or contribute as provided in Section 6(e) hereof to Losses of each underwriter,
if any, of Transfer Restricted Securities registered under a Shelf Registration
Statement, their directors, officers, employees or agents and each person who
controls such underwriter on substantially the same basis as that of the
indemnification of the Initial Purchaser and the Notice Holders provided in
this Section 6(a) and shall, if requested by any Holder, enter into an
underwriting agreement reflecting such agreement, as provided in Section
4(b)(xxvi) hereof.

(b)   Each
Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, each of its directors, officers, employees and agents and each person,
if any, who controls the Company within the meaning of the Securities Act or
the Exchange Act (i) to the same extent as the foregoing indemnity from the
Company to each such Holder, but only with reference to written information
relating to such Holder furnished to the Company by or on behalf of such Holder
specifically for 

 20
 

 

inclusion in the documents referred to in the foregoing indemnity and
(ii) against any Loss, joint or several, including, but not limited to, any
Loss relating to resales of the Transfer Restricted Securities, to which such
person may become subject, insofar as any such Loss arises out of, or is based
upon any Free Writing Prospectus used by such Holder without the prior consent
of the Issuer, and in connection with any underwritten offering, the
underwriters, provided that the indemnification obligation in this clause (ii)
shall be several, not joint and several, among the Holders who used such Free
Writing Prospectus.  This indemnity
agreement set forth in this Section shall be in addition to any liabilities
which any such Holder may otherwise have.

(c)   Promptly
after receipt by an indemnified party under this Section 6 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against an indemnifying party under this Section 6,
notify the indemnifying party in writing of the commencement thereof, but the
failure to notify the indemnifying party (i) will not relieve it from liability
under paragraph (a) or (b) above unless and to the extent it did not otherwise
learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses and (ii) will not, in any
event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in paragraph (a) or
(b) above.  In case any such action is
brought against any indemnified party and such indemnified party seeks or
intends to seek indemnity from an indemnifying party, the indemnifying party
will be entitled to participate in, and, to the extent that it shall elect,
jointly with all other indemnifying parties similarly notified, by written
notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, to assume the defense thereof
with counsel satisfactory to such indemnified party; provided, however,
if the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that a conflict may arise between the positions of the indemnifying party and
the indemnified party in conducting the defense of any such action or that
there may be legal defenses available to it and/or other indemnified parties
that are different from or additional to those available to the indemnifying
party, the indemnified party or parties shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the
defense of such action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying
party to such indemnified party of such indemnifying party’s election so to
assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such indemnified party
under this Section 6 for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof unless (i) the 

 21
 

 

indemnified party shall have employed separate counsel in accordance
with the proviso to the preceding sentence (it being understood, however, that
the indemnifying party shall not be liable for the expenses of more than one
separate counsel (other than local counsel), reasonably approved by the
indemnifying party, representing the indemnified parties who are parties to
such action) or (ii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time after notice of commencement of the action, in each of which
cases the fees and expenses of counsel shall be at the expense of the
indemnifying party.

(d)   The
indemnifying party under this Section 6 shall not be liable for any settlement
of any proceeding effected without its written consent, which shall not be
withheld unreasonably, but if settled with such consent or if there is a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any Loss by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at
any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as
contemplated by Section 6(c) hereof, the indemnifying party agrees that it shall
be liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 30 days after receipt
by such indemnifying party of the aforesaid request and (ii) such indemnifying
party shall not have reimbursed the indemnified party in accordance with such
request prior to the date of such settlement. 
No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement, compromise or consent to the entry of
judgment in any pending or threatened action, suit or proceeding in respect of
which any indemnified party is or could have been a party and indemnity was or
could have been sought hereunder by such indemnified party, unless such
settlement, compromise or consent (x) includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of
such action, suit or proceeding and (y) 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.

(e)   If
the indemnification provided for in Section 6 is for any reason unavailable to
or otherwise insufficient to hold harmless an indemnified party in respect of
any Loss referred to therein, then each indemnifying party shall contribute to
the aggregate amount paid or payable by such indemnified party, as incurred, as
a result of any Loss referred to therein:

(i)    in such proportion as is
appropriate to reflect the relative benefits received by the Company, on the
one hand, and 

 22
 

 

the Holders, on the other hand, from the
offering and sale of the Transfer Restricted Securities, or

(ii)   if the allocation provided
by Section (6)(e)(i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in Section 6(e)(i) above but also the relative fault of the Company, on the
one hand, and the Holders, on the other hand, in connection with the statements
or omissions or alleged statements or omissions that resulted in such Loss, as
well as any other relevant equitable considerations.

The relative benefits received by the Company, on the one hand, and the
Holders, on the other hand, in connection with such offering and such sale of
the Transfer Restricted Securities pursuant to this Agreement shall be deemed
to be in the same respective proportions as the total net proceeds from the
offering of the Notes purchased under the Purchase Agreement (before deducting
expenses) received by the Company and the total proceeds received by the
Holders with respect to their sale of Transfer Restricted Securities.  The relative fault of the Company, on the one
hand, and the Holders, on the other hand, shall be determined by reference to,
among other things, whether any such untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the Company, on the one hand, or the Holders, on the
other hand, and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.  The Company and the Holders agree that it
would not be just and equitable if contribution pursuant to this Section 6(e)
were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation that does not take account of the equitable
considerations referred to in this Section 6(e).

The amount
paid or payable by a party as a result of the Loss referred to above shall be
deemed to include, subject to the limitations set forth in Section 6(c), any
legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim.

Notwithstanding
the provisions of this Section 6, in no event will (i) any Holder be required
to undertake liability to any person under this Section 6 for any amounts in
excess of the dollar amount of the proceeds to be received by such Holder from
the sale of such Holder’s Transfer Restricted Securities (after deducting any
fees, discounts and commissions applicable thereto) pursuant to any Shelf
Registration Statement under which such Transfer Restricted Securities are to
be registered under the Securities Act and (ii) any underwriter be required to
undertake liability to 

 23
 

 

any person hereunder for any amounts in excess of the discount or
commission payable to such underwriter with respect to the Transfer Restricted
Securities underwritten by it and distributed to the public.  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
fraudulent misrepresentation.  The
Holders’ obligations to contribute as provided in this Section 6(e) are several
and not joint.

(f)    The
provisions of this Section 6 shall remain in full force and effect, regardless
of any investigation made by or on behalf of any Holder or the Company or any
of the officers, directors, employees, agents or controlling persons referred
to in Section 6 hereof, and will survive the sale by a Holder of Transfer
Restricted Securities.

7.     Rule 144A
and Rule 144.  The Company
agrees with each Holder, for so long as any Transfer Restricted Securities
remain outstanding and during any period in which the Company (i) is not
subject to Section 13 or 15(d) of the Exchange Act, to make available, upon
request of any Holder, to such Holder of Transfer Restricted Securities in
connection with any sale thereof and any prospective purchaser of such Transfer
Restricted Securities designated by such Holder, the information required by
Rule 144A(d)(4) under the Securities Act in order to permit resales of such
Transfer Restricted Securities pursuant to Rule 144A, and (ii) is subject to
Section 13 or 15 (d) of the Exchange Act, to make all filings required thereby
in a timely manner in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144.

8.     Underwritten
Registrations.

(a)   Any
Holder of Transfer Restricted Securities who desires to do so may sell Transfer
Restricted Securities (in whole or in part) in an underwritten offering; provided that (i) the Electing Holders of at least 33-1/3%
in aggregate principal amount of the Transfer Restricted Securities then
covered by the Shelf Registration Statement shall request such an offering and
(ii) at least such aggregate principal amount of such Transfer Restricted
Securities shall be included in such offering; and provided
further that the Company shall not be obligated to participate in
more than one underwritten offering during the Effectiveness Period.  Upon receipt of such a request, the Company
shall provide all Holders of Transfer Restricted Securities written notice of
the request, which notice shall inform such Holders that they have the
opportunity to participate in the offering.  
If any of the Transfer Restricted Securities covered by the Shelf
Registration Statement are to be sold in an underwritten offering, the Managing
Underwriters shall be selected by the Majority Holders.

 24
 

 

 

(b)   No
person may participate in any underwritten offering pursuant to the Shelf
Registration Statement unless such person (i) agrees to sell such person’s
Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve
such arrangements; (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements; and (iii) if such
Holder is not then a Notice Holder, such Holder returns a completed and signed
Notice and Questionnaire to the Company in accordance with Section 2(b) or
Section 2(f) hereof within a reasonable amount of time before such
underwritten offering.

(c)   The
Holders participating in any underwritten offering shall be responsible for any
underwriting discounts and commissions and fees and, subject to Section 5
hereof, expenses of their own counsel. 
The Company shall pay all expenses customarily borne by issuers in an
underwritten offering, including but not limited to filing fees, the reasonable
legal fees and disburse­ments of its counsel and independent public accountants
and any printing expenses incurred in connection with such underwritten
offering.  Notwithstanding the foregoing
or the provisions of Section 4(b)(xxiv) hereof, upon receipt of a request from
the Managing Underwriter or a representative of holders of a majority of the
Transfer Restricted Securities to be included in an underwritten offering to
prepare and file an amendment or supplement to the Shelf Registration Statement
and Prospectus in connec­tion with an underwritten offering, the Company may
delay the filing of any such amend­ment or supplement for up to 90 days if the
Board of Directors of the Company shall have determined in good faith that the
Company has a bona fide business reason for such delay.

9.     Miscellaneous.

(a)   Free Writing Prospectuses.  Each Holder represents that it has not
prepared or had prepared on its behalf or used or referred to, and agrees that
it will not prepare or have prepared on its behalf or use or refer to, any Free
Writing Prospectus, and has not distributed and will not distribute any written
materials in connection with the offer or sale of the Transfer Restricted
Securities without the prior express written consent of the Company and, in
connection with any underwritten offering, the underwriters.  Any such Free Writing Prospectus consented to
by the Company and, if applicable, the underwriters, as the case may be, is
hereinafter referred to as a “Permitted Free
Writing Prospectus.”  The
Company represents and agrees that it has treated and will treat, as the case
may be, each Permitted Free Writing Prospectus as an Issuer Free 

 25
 

 

Writing Prospectus, including in respect of timely filing with the
Commission, legending and recordkeeping.

(b)   Remedies. 
The Company acknowledges and agrees that any failure by the Company to
comply with its obligations under Section 2 hereof may result in material
irreparable injury to the Initial Purchaser or the Holders for which there is
no adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely, and that, in the event of any such failure, in
addition to being entitled to exercise all rights provided to it herein, in the
Indenture or in the Purchase Agreement or granted by law, including recovery of
liquidated or other damages, the Initial Purchaser or any Holder may obtain
such relief as may be required to specifically enforce the Company’s
obligations under Section 2 hereof.  The
Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

(c)   Actions Affecting Transfer Restricted Securities.  The Company shall not, directly or
indirectly, take any action with respect to the Transfer Restricted Securities
as a class that would adversely affect the ability of the Holders of Transfer
Restricted Securities to include such Transfer Restricted Securities in a
registration undertaken pursuant to this Agreement.

(d)   No Inconsistent Agreements.  The Company has not, as of the date hereof,
entered into, nor shall it, on or after the date hereof, enter into, any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof.  In addition, the
Company shall not grant to any of its securityholders (other than the Holders
of Transfer Restricted Securities in such capacity) the right to include any of
its securities in the Shelf Registration Statement provided for in this
Agreement other than the Transfer Restricted Securities.

(e)   Amendments and Waivers.  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 Company has obtained the written consent of
a Majority of Holders; provided, however, that with respect to any matter
that directly or indirectly adversely affects the rights of the Initial
Purchaser hereunder, the Company shall obtain the written consent of the
Initial Purchaser against which such amendment, qualification, supplement,
waiver or consent is to be effective. 
Notwithstanding the foregoing (except the foregoing proviso), a waiver
or consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Notice Holders whose securities are being
sold pursuant to a Shelf Registration Statement and does not directly or
indirectly adversely affect 

 26
 

 

the rights of other Holders, may be given by a majority of such selling
Notice Holders, determined on the basis of Transfer Restricted Securities being
sold rather than registered under such Shelf Registration Statement.

(f)    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), facsimile transmission, 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 Company,
initially at its address set forth in the Purchase Agreement,

With a copy
to:

United
Therapeutics Corporation

1110 Spring Street

Silver Spring, Maryland 20910

Attention:  General Counsel

Facsimile No.:  (301) 608-9292

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

Any party hereto may change the address for
receipt of communications by giving written notice to the others.

(g)   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 and without the need for an express assignment,
subsequent Holders of Transfer Restricted Securities.  The Company hereby agrees to extend the
benefit of this Agreement to any Holder and any such Holder may specifically
enforce the provisions of this Agreement as if an original party hereto.

(h)   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.

 27
 

 

 

(i)    Jurisdiction. The Company agrees that any
suit, action or proceeding against the Company brought by any Holder, the
Initial Purchaser, the directors, officers, employees, Affiliates or agents of
any Holder or the Initial Purchaser, or by any person who controls any Holder
or the Initial Purchaser, arising out of or based upon this Agreement or the
transactions contemplated hereby may be instituted in any State or U.S. federal
court in The City of New York and County of New York, and waives any objection
which it may now or hereafter have to the laying of venue of any such
proceeding, and irrevocably submits to the non-exclusive jurisdiction of such
courts in any suit, action or proceeding. 
The Company hereby appoints CT Corporation as its authorized agent (the “Authorized Agent”) upon whom process may
be served in any suit, action or proceeding arising out of or based upon this
Agreement or the transactions contemplated herein which may be instituted in
any State or U.S. federal court in The City of New York and County of New York,
by any Holder, the Initial Purchaser, the directors, officers, employees,
Affiliates and agents of any Holder or the Initial Purchaser, or by any person
who controls any Holder or the Initial Purchaser, and expressly accepts the
non-exclusive jurisdiction of any such court in respect of any such suit,
action or proceeding. The Company hereby represents and warrants that the
Authorized Agent has accepted such appointment and has agreed to act as said
agent for service of process, and the Company agrees to take any and all
action, including the filing of any and all documents that may be necessary to
continue such appointment in full force and effect as aforesaid. Service of
process upon the Authorized Agent shall be deemed, in every respect, effective
service of process upon the Company. The Company further agrees to take any and
all action, including the execution and filing of any and all such documents
and instruments, as may be necessary to continue such designation and
appointment in full force and effect so long as any of the Notes shall be
outstanding. To the extent that the Company may acquire any immunity from
jurisdiction of any court or from any legal process (whether through service of
notice, attachment prior to judgment, attachment in aid of execution, execution
or otherwise) with respect to itself or its property, it hereby irrevocably
waives such immunity in respect of this Agreement, to the fullest extent
permitted by law.

(j)    Notes Held by the Company or Their 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 Company or its Affiliates
(other than subsequent Holders if such subsequent Holders are deemed to be
Affiliates solely by reason of their holding of such Transfer Restricted
Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

 28
 

 

 

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

(l)    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

(m)  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 to the extent the original intent of the parties hereto is preserved,
it being intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

(n)   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 Company with respect to the Transfer Restricted
Securities.  This Agreement supersedes
all prior agreements and understandings between the parties with respect to
such subject matter.

 29

 

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

	
  

  	
  UNITED THERAPEUTICS CORPORATION

  
	
   

  	
  By:

  	
  /s/ JOHN FERRARI

  
	
   

  	
   

  	
  Name: John Ferrari

  
	
   

  	
   

  	
  Title:  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK SECURITIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ ANDREW
  YAEGER

  
	
   

  	
   

  	
  Authorized Representative

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ MICHAEL
  FRIEZO

  
	
   

  	
   

  	
  Authorized RepresentativeExhibit
10.1

Deutsche Bank 

Deutsche Bank AG London

Winchester
house

1
Great Winchester St,

London
EC2N 2DB

Telephone:  44 20 7545 8000

 

c/o Deutsche Bank Securities Inc.

60 Wall Street

New York, NY 10005

Telephone: (212) 250-2500

	
  DATE:

  	
   

  	
  October 24, 2006

  
	
   

  	
   

  	
   

  
	
  TO:

  	
   

  	
  United Therapeutics Corporation

  
	
  ATTENTION:

  	
   

  	
  John Ferrari, Chief Financial Officer

  
	
  TELEPHONE:

  	
   

  	
  (301) 608-9292

  
	
  FACSIMILE:

  	
   

  	
  (301) 608-3049

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
  Deutsche Bank AG London

  
	
  TELEPHONE:

  	
   

  	
  44 20 7545 8193

  
	
  FACSIMILE:

  	
   

  	
  44 11 3336 2009

  
	
   

  	
   

  	
   

  
	
  SUBJECT:

  	
   

  	
  Equity Derivatives Confirmation

  
	
   

  	
   

  	
   

  
	
  REFERENCE NUMBER(S):

  	
   

  	
  137553

  

 

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

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

The definitions contained in the 2002 ISDA Equity Derivatives Definitions
(the “Equity Definitions”), as published by
the International Swaps and Derivatives Association, Inc., are incorporated
into this Confirmation.  In the event of
any inconsistency between the Equity Definitions and the terms of this
Confirmation, the terms of this
Confirmation shall 

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

  	
   

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

  

 

 1
 

 

govern.  For the purposes of the Equity
Definitions, each reference herein to a Note Hedging Unit shall be deemed to be
a reference to a Call or an Option, as context requires.

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

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

	
  General:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  October 25, 2006.

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  The closing date for the initial issuance of the
  Convertible Notes.

  
	
   

  	
   

  	
   

  
	
  Transaction Style:

  	
   

  	
  As described below under “Procedure for Exercise”.

  
	
   

  	
   

  	
   

  
	
  Transaction Type:

  	
   

  	
  Note Hedging Units.

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Deutsche.

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty.

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Convertible Notes:

  	
   

  	
  0.50% Senior Convertible Notes of Counterparty due
  October 15, 2011, offered pursuant to an Offering Memorandum to be dated as
  of October 24, 2006 and issued pursuant to the indenture to be dated on or
  about October 30, 2006, by and between Counterparty and Bank of New York, as
  trustee (the “Indenture”). Certain defined
  terms used herein have the meanings assigned to them in Indenture. In the
  event of any inconsistency between the terms defined in the Indenture and
  this Confirmation, this Confirmation shall govern. For the avoidance of
  doubt, references herein to sections of the Indenture are based on the draft
  of the Indenture most recently reviewed by the parties at the time of
  execution of this Confirmation. If any relevant sections of the Indenture are
  changed, added or renumbered following execution of this Confirmation, the
  parties will amend this Confirmation in good faith to preserve the economic
  intent of the parties.

  
	
   

  	
   

  	
   

  
	
  Number of Note Hedging Units:

  	
   

  	
  250,000.

  
	
   

  	
   

  	
   

  
	
  Note Hedging Unit Entitlement:

  	
   

  	
  1,000 divided by 75.2257. Notwithstanding anything
  to the contrary herein or in the Agreement (including without limitation the
  provisions of Calculation Agent Adjustment), in no event shall the Note
  Hedging Unit Entitlement at any time be greater than the Conversion Rate (as
  such term is defined in the Indenture) at such time.

  

 

 2
 

 

 

	
  

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  USD 1,000 divided by
  the Note Hedging Unit Entitlement.

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD 80,750,000.

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  The Effective Date.

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Related Exchanges:

  	
   

  	
  All Exchanges.

  
	
   

  	
   

  	
   

  
	
  Calculation Agent:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Procedure for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Potential Exercise Dates:

  	
   

  	
  Each Conversion Date.

  
	
   

  	
   

  	
   

  
	
  Conversion Date:

  	
   

  	
  Each “Conversion Date” as defined in the Indenture.

  
	
   

  	
   

  	
   

  
	
  Required Exercise on Conversion Dates:

  	
   

  	
  On each Conversion Date, a number of Note Hedging
  Units equal to the number of Convertible Notes in denominations of USD 1,000
  principal amount submitted for conversion in respect of such Conversion Date
  in accordance with the terms of the Indenture shall be exercised
  automatically, subject to “Notice of Exercise” below.

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  October 15, 2011

  
	
   

  	
   

  	
   

  
	
  Multiple Exercise:

  	
   

  	
  Applicable, as provided under “Required Exercise on
  Conversion Dates”.

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  As provided under “Required Exercise on Conversion
  Dates”.

  
	
   

  	
   

  	
   

  
	
  Notice of Exercise:

  	
   

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, in order to exercise any Note Hedging Units, Counterparty
  must notify Deutsche in writing prior to 5:00 PM, New York City time, on the
  day that is two Scheduled Trading Days prior to the first day of the
  “Conversion Period”, as defined in the Indenture, relating to the Convertible
  Notes converted on the Conversion Date relating to the relevant Exercise Date
  (the “Notice Deadline”) of (i)
  the number of Note Hedging Units being exercised on such Exercise Date and
  (ii) the scheduled settlement date under the Indenture for the Convertible
  Notes converted on the Conversion Date corresponding to such Exercise Date.

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  In lieu of the obligations set forth in Sections 8.1
  and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above,
  in respect of any Exercise Date occurring on a Conversion Date, Deutsche
  shall deliver to 

  

 

 3
 

 

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Counterparty, on the related Settlement Date, the
  Settlement Amount.For the avoidance of doubt, to the extent Deutsche is
  obligated to deliver Shares hereunder, the provisions of Sections 9.8, 9.9,
  9.10, 9.11 and 9.12 of the Equity Definitions shall be applicable to any such
  delivery of Shares, except that all references in such provisions to
  “Physically-Settled” shall be read as references to “Net Share Settled”; and provided that the Representation and
  Agreement contained in Section 9.11 of the Equity Definitions shall be
  modified by excluding any representations therein relating to restrictions,
  obligations, limitations or requirements under applicable securities laws as
  a result of the fact that Counterparty is the issuer of the Shares.

  
	
   

  	
   

  	
   

  
	
  Settlement Amount:

  	
   

  	
  A number of Shares equal to the aggregate number of
  Shares that Counterparty is obligated to deliver to the holder(s) of the
  Convertible Notes converted on such Conversion Date pursuant to Section
  5.05(a) of the Indenture (the “Convertible
  Obligation”); provided
  that such obligation shall be determined excluding any Shares that
  Counterparty is obligated to deliver to holder(s) of the Convertible Notes as
  a result of any adjustments to the Conversion Rate for the issuance of
  additional shares as set forth in Section 4.02 of the Indenture or any
  voluntary adjustment pursuant to Sections 5.08 or 5.09 of the Indenture; provided further that, if
  Counterparty is permitted or required to exercise discretion under the terms
  of the Indenture with respect to any determination, calculation or adjustment
  relevant to conversion of the Convertible Notes including, but not limited
  to, the volume-weighted average price of the Shares, Counterparty shall
  consult with Deutsche with respect thereto prior to making such
  determination, calculation or adjustment. For the avoidance of doubt, if the
  “Conversion Obligation”, as defined in the Indenture, is less than or equal
  to USD 1,000, Deutsche will have no delivery obligation hereunder.

  
	
   

  	
   

  	
   

  
	
  Notice of Delivery Obligation:

  	
   

  	
  No later than the Scheduled Trading Day immediately
  following the last day of the “Conversion Period”, as defined in the
  Indenture, Counterparty shall give Deutsche notice of the final number of
  Shares comprising the Convertible Obligation (it being understood, for the
  avoidance of doubt, that the requirement of Counterparty to deliver such
  notice shall not limit Counterparty’s obligations with respect to Notice of
  Exercise, as set forth above, in any way).

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  In respect of an Exercise Date occurring on a
  Conversion Date, the settlement date for the Shares to be delivered under the
  Convertible Notes under the terms of the Indenture; provided that the Settlement Date will
  not be prior to the later of (i) the date one Settlement Cycle following the
  final day of the “Conversion Period”, as defined in the Indenture, or (ii)
  the Exchange Business Day immediately following the date on which
  Counterparty gives notice to Deutsche of such Settlement Date prior to 5:00
  PM, New York City time.

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD.

  
	
   

  	
   

  	
   

  
	
  Restricted Certificated Shares:

  	
   

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, 

  
	
   

  	
   

  	
   

  

 4
 

 

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Deutsche may, in whole or in part, deliver Shares in
  certificated form representing the Settlement Amount to Counterparty in lieu
  of delivery through the Clearance System.

  
	
   

  	
   

  	
   

  
	
  Share Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Potential Adjustment Events:

  	
   

  	
  Notwithstanding Section 11.2(e) of the Equity
  Definitions, a “Potential Adjustment Event” means any occurrence of any event
  or condition, as set forth in Section 5.06 of the Indenture that would result
  in an adjustment to the Conversion Rate of the Convertible Notes; provided that in no event shall there be any adjustment
  hereunder as a result of an adjustment to the Conversion Rate pursuant to
  Sections 5.08 or 5.09 or Section 4.02 of the Indenture.

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation Agent Adjustment, which means that,
  notwithstanding Section 11.2(c) of the Equity Definitions, upon any
  adjustment to the Conversion Rate of the Convertible Notes pursuant to the
  Indenture (other than Section 5.08, Section 5.09 and Section 4.02 of the
  Indenture), the Calculation Agent shall make a corresponding adjustment to
  any one or more of the Strike Price, Number of Note Hedging Units, the Note
  Hedging Unit Entitlement and any other variable relevant to the exercise,
  settlement or payment for the Transaction.

  
	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Merger Events:

  	
   

  	
  Notwithstanding Section 12.1(b) of the Equity
  Definitions, a “Merger Event” means the occurrence of any event or condition
  set forth in Section 5.11 of the Indenture.

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

  	
  Notwithstanding Section 12.2 of the Equity
  Definitions, upon the occurrence of a Merger Event, the Calculation Agent
  shall make the corresponding adjustment in respect of any adjustment under
  the Indenture to any one or more of the nature of the Shares, the Strike
  Price, the Number of Note Hedging Units, the Note Hedging Unit Entitlement
  and any other variable relevant to the exercise, settlement or payment for
  the Transaction, to the extent an analogous adjustment is made under the
  Indenture; provided that such
  adjustment shall be made without regard to any adjustment to the Conversion
  Rate for the issuance of additional shares as set forth in Section 4.02 of
  the Indenture or any voluntary adjustment pursuant to Sections 5.08 or 5.09
  of the Indenture.

  
	
   

  	
   

  	
   

  
	
  Nationalization, Insolvency and Delisting:

  	
   

  	
  Cancellation and Payment; provided that in addition to the provisions of Section
  12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting
  if the Exchange is located in the United States and the Shares are not
  immediately re-listed, re-traded or re-quoted on any of the New York Stock
  Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the
  NASDAQ Global Market (or their respective successors); if the Shares are
  immediately re-listed, re-traded or re-quoted on any such exchange or
  quotation system, such exchange 

  

 

 5
 

 

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  or quotation system shall be deemed to be the
  Exchange. For the avoidance of doubt, the occurrence of any event that is a
  Merger Event and would otherwise have been a Delisting will have the
  consequence specified for the relevant Merger Event.

  
	
   

  	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change in Law:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Increased Cost of Hedging:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Deutsche for all applicable Additional Disruption
  Events

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  Deutsche for all applicable Additional Disruption
  Events

  
	
   

  	
   

  	
   

  
	
  Acknowledgements:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and Acknowledgements

  	
   

  	
   

  
	
  Regarding Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional Acknowledgements:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

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

  
	
   

  

 

(i)                                     Tax Disclosure. Notwithstanding anything to the contrary herein,
in the Equity Definitions or in the Agreement, and notwithstanding any express
or implied claims of exclusivity or proprietary rights, the parties (and each
of their employees, representatives or other agents) are authorized to disclose
to any and all persons, beginning immediately upon commencement of their
discussions and without limitation of any kind, the tax treatment and tax
structure of the Transaction, and all materials of any kind (including opinions
or other tax analyses) that are provided by either party to the other relating
to such tax treatment and tax structure.

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

(iii)                               Securities
Act. It is a “qualified institutional buyer” as defined in Rule 144A
under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), or an “accredited investor” as defined under the Securities
Act.

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

 6
 

 

 

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

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

 

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

(ii)                                  Counterparty has the capacity and authority to invest
directly in the Shares underlying the Transaction and has not entered into the
Transaction with the intent to avoid any regulatory filings.

(iii)                               Counterparty’s
financial condition is such that it has no need for liquidity with respect to
its investment in the Transaction and no need to dispose of any portion thereof
to satisfy any existing or contemplated undertaking or indebtedness.

(iv)                              Counterparty’s
investments in and liabilities in respect of the Transaction, which it
understands are not readily marketable, are not disproportionate to its net
worth, and Counterparty is able to bear any loss in connection with the
Transaction, including the loss of its entire investment in the Transaction.

(v)                                 The
representations and warranties of Counterparty set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement dated as of October 24, 2006
between Counterparty and Deutsche as representative of the initial purchaser
thereto (the “Purchase Agreement”)
are true and correct and are hereby deemed to be repeated to Deutsche as if set
forth herein.

(vi)                              Counterparty
understands, agrees and acknowledges that Deutsche has no obligation or
intention to register the Transaction under the Securities Act, any state
securities law or other applicable federal securities law.

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

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

(ix)                                (A)
Counterparty is acting for its own account, and it has made its own independent
decisions to enter into the Transaction and as to whether the Transaction is
appropriate or proper for it based upon its own judgment and upon advice from
such advisers as it has deemed necessary, (B) Counterparty is not relying on
any communication (written or oral) of Deutsche or any of its affiliates as
investment advice or as a recommendation to enter into the Transaction (it
being understood that information and explanations related to the terms and
conditions of the Transaction shall not be considered investment advice or a
recommendation to enter into the Transaction) and (C) no communication (written
or oral) 

 7
 

 

                                                received
from Deutsche or any of its affiliates shall be deemed to be an assurance or
guarantee as to the expected results of the Transaction.

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

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

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

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

(xiv)                         The
Transaction and any repurchase of the Shares by Counterparty in connection with
the Transaction, have been approved by Counterparty’s board of directors.

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

 

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

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

(iii)                               Counterparty shall, on
each Potential Exercise Date and on any day on which Shares may be delivered to
Counterparty pursuant to the Transaction, have the capacity and authority to invest directly in the Shares underlying
the Transaction.

(iv)                              Any
repurchase of Shares by Counterparty in connection with the Transaction will be
pursuant to a publicly announced share repurchase program approved by
Counterparty’s board of directors and such repurchase shall be publicly
disclosed in Counterparty’s periodic filings under the Exchange Act and its
financial statements and notes thereto when so required.

 8

 

 

Miscellaneous:

 

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

Qualified Financial Contracts.  It is the intention of the
parties that, in respect of Counterparty, (a) the Transaction shall constitute
a “qualified financial contract” within the meaning of 12 U.S.C. Section
1821(e)(8)(D)(i) and (b) a Non-Defaulting Party’s rights under Sections 5 and 6
of the Agreement constitute rights of the kind referred to in 12 U.S.C. Section
1821(e)(8)(A).

 

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

 

Staggered
Settlement.  Deutsche may, by notice to Counterparty prior
to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares deliverable
on such Nominal Settlement Date on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows: (i)
in such notice, Deutsche will specify to Counterparty the related Staggered Settlement
Dates (each of which will be on or prior to such Nominal Settlement Date, but
not prior to the beginning of the related “Conversion Period”) or delivery
times and how it will allocate the Shares it is required to deliver under “Net
Share Settlement” above among the Staggered Settlement Dates or delivery times;
and (ii) the aggregate number of Shares that Deutsche will deliver to
Counterparty hereunder on all such Staggered Settlement Dates and delivery
times will equal the number of Shares that Deutsche would otherwise be required
to deliver on such Nominal Settlement Date.

 

Additional
Termination Events.  The occurrence of (i) an “Event of Default”
with respect to Counterparty under the terms of the Convertible Notes as set
forth in Section 9.01 of the Indenture, (ii) an Amendment Event or (iii) a
Repayment Event shall be an Additional Termination Event with respect to which
the Transaction is the sole Affected Transaction and Counterparty is the sole
Affected Party and Deutsche shall be the party entitled to designate an Early
Termination Date pursuant to Section 6(b) of the Agreement; provided that in the case of a Repayment
Event the Transaction shall be subject to termination only in respect of the
portion of the Transaction corresponding to the number of Convertible Notes
that cease to be outstanding in connection with or as a result of such
Repayment Event; provided  further that if, ten Scheduled Trading
Days after the occurrence of any Repayment Event, Deutsche has not designated
an Early Termination Date in respect of the applicable portion of the
Transaction, Counterparty may designate an Early Termination Date in respect of
such portion of the Transaction.  For the
avoidance of doubt, any such designation by Counterparty shall not alter the manner
of calculation of any termination amount in respect of the terminated portion
of the Transaction or limit the period over which Deutsche may complete any
hedging unwind activity.  Counterparty
will provide prompt notice to Deutsche of the occurrence of any Repayment
Event.

 

“Amendment
Event” means that Counterparty amends, modifies, supplements or
obtains a waiver with respect to (i) any term of the Indenture or the
Convertible Notes governing the principal amount, coupon, maturity, repurchase
obligation of Counterparty, redemption right of Counterparty, any term relating
to conversion of the Convertible Notes (including changes to the conversion
price, conversion settlement dates or conversion conditions), or (ii) any term
that would require consent of the holders of not less than 100% of the
principal amount of the Convertible Notes to amend, in each case without the
prior consent of Deutsche, such consent not to be unreasonably withheld.

 

“Repayment
Event” means that (A) any Convertible Notes are repurchased (whether
in connection with or as a result of a change of control, howsoever defined, or
for any other reason) by Counterparty or any of its subsidiaries, (B) any
Convertible Notes are delivered to Counterparty or any of its subsidiaries in
exchange for delivery of any property or assets of Counterparty or any of its
subsidiaries (howsoever described), (C) any principal of any of the Convertible
Notes is repaid prior to the final maturity date of the Convertible Notes
(whether following acceleration of the Convertible Notes or otherwise), or (D)
any Convertible Notes are exchanged by or for the benefit of the holders
thereof for any other securities of Counterparty or any of its affiliates (or
any other property, or any combination thereof) pursuant to any 

 9
 

 

exchange offer or similar
transaction; provided that, in
the case of clause (B) and clause (D), conversions of the Convertible Notes
pursuant to the terms of the Indenture as in effect on the date hereof shall
not be Repayment Events.

 

Disposition
of Hedge Shares.  Counterparty hereby agrees that if, in the
good faith reasonable judgment of Deutsche, the Shares (the “Hedge Shares”)
acquired by Deutsche for the purpose of hedging its obligations pursuant to the
Transaction cannot be sold in the public market by Deutsche without
registration under the Securities Act, Counterparty shall, at its election: (i)
in order to allow Deutsche to sell the Hedge Shares in a registered offering,
make available to Deutsche an effective registration statement under the
Securities Act to cover the resale of such Hedge Shares and (A) enter into an
agreement, in form and substance satisfactory to Deutsche, substantially in the
form of an underwriting agreement for a registered offering, (B) provide
accountant’s “comfort” letters in customary form for registered offerings of
equity securities, (C) provide disclosure opinions of nationally recognized
outside counsel to Counterparty reasonably acceptable to Deutsche, (D) provide
other customary opinions, certificates and closing documents customary in form
for registered offerings of equity securities and (E) afford Deutsche a
reasonable opportunity to conduct a “due diligence” investigation with respect
to Counterparty customary in scope for underwritten offerings of equity
securities; provided, however, that if Deutsche, in its sole
reasonable discretion, is not satisfied with access to due diligence materials,
the results of its due diligence investigation, or the procedures and
documentation for the registered offering referred to above, then clause (ii)
or clause (iii) of this paragraph shall apply at the election of Counterparty;
(ii) in order to allow Deutsche to sell the Hedge Shares in a private
placement, enter into a private placement agreement substantially similar to
private placement purchase agreements customary for private placements of
equity securities, in form and substance satisfactory to Deutsche, including
customary representations, covenants, blue sky and other governmental filings
and/or registrations, indemnities to Deutsche, due diligence rights (for
Deutsche or any designated buyer of the Hedge Shares from Deutsche), opinions
and certificates and such other documentation as is customary for private
placements agreements, all reasonably acceptable to Deutsche (in which case,
the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary, in its reasonable judgment, to compensate
Deutsche for any discount from the public market price of the Shares incurred
on the sale of Hedge Shares in a private placement); or (iii) purchase the
Hedge Shares from Deutsche at the VWAP Price on such Exchange Business Days,
and in the amounts, requested by Deutsche. 
“VWAP Price” means, on any Exchange Business Day, the per Share volume-weighted
average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page
UTHR <equity> AQR (or any
successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m. (New
York City time) on such Exchange Business Day (or if such volume-weighted
average price is unavailable, the market value of one Share on such Exchange
Business Day, as determined by the Calculation Agent using a volume-weighted
method).  This paragraph shall survive
the termination, expiration or early unwind of the Transaction.

 

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

 

No
Collateral. 
Notwithstanding any provision of this Confirmation, the Agreement,
Equity Definitions, or any other agreement between the parties to the contrary,
the obligations of Counterparty under the Transaction are not secured by any
collateral.

 

Securities Contract; Swap Agreement.  The
parties hereto agree and acknowledge that Deutsche is a “financial
institution,” “swap participant” and “financial participant” within the meaning
of Sections 101(22), 101(53C) and 101(22A) of Title 11 of the United States
Code (the “Bankruptcy Code”).  The parties hereto further agree and
acknowledge (A) that this Confirmation is (i) a “securities contract,” as such
term is defined in Section 741(7) of the Bankruptcy Code, with respect to which
each payment and delivery hereunder is a “settlement payment,” as such term is
defined in Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,”
as such term is 

 10
 

 

defined
in Section 101(53B) of the Bankruptcy Code, with respect to which each payment
and delivery hereunder is a “transfer,” as such term is defined in Section
101(54) of the Bankruptcy Code, and (B) that Deutsche is entitled to the
protections afforded by, among other sections, Section 362(b)(6), 362(b)(17),
546(e), 546(g), 555 and 560 of the Bankruptcy Code.

 

Repurchase
Notices.  Counterparty
shall, on any day on which Counterparty effects any repurchase of Shares,
promptly give Deutsche a written notice of such repurchase (a “Repurchase Notice”) on such day if following such
repurchase, the Unit Equity Percentage as determined on such day is (a) equal
to or greater than 6% and (b) greater by 0.5% than the Unit Equity Percentage
included in the immediately preceding Repurchase Notice (or, in the case of the
first such Repurchase Notice, greater than the Unit Equity Percentage as of the
date hereof).  The “Unit Equity
Percentage” as of any day is the fraction (i) the numerator of which
is the product of the number of Note Hedging Units and
the Note Hedging Unit Entitlement, and (ii) the denominator of which is the
number of Shares outstanding on such day. 
Counterparty agrees to indemnify and hold harmless Deutsche and its
affiliates and their respective officers, directors, employees, advisors,
agents and controlling persons (each, a “Section 16  Indemnified Person”) from and against any
and all losses (including losses relating to Deutsche’s hedging activities as a
consequence of becoming, or of the risk of becoming, a Section 16 “insider”,
including without limitation, any forbearance from hedging activities or
cessation of hedging activities and any losses in connection therewith with
respect to the Transaction), claims, damages, judgments, liabilities and
expenses (including reasonable attorney’s fees), joint or several, to which a
Section 16 Indemnified Person may become subject, as a result of Counterparty’s
failure to provide Deutsche with a Repurchase Notice on the day and in the
manner specified in this paragraph, and to reimburse, upon written request,
each of such Section 16 Indemnified Persons for any reasonable legal or other
expenses incurred in connection with investigating, preparing for, providing
testimony or other evidence in connection with or defending any of the
foregoing.  If any suit, action,
proceeding (including any governmental or regulatory investigation), claim or
demand shall be brought or asserted against the Section 16 Indemnified Person,
such Section 16 Indemnified Person shall promptly notify Counterparty in
writing, and Counterparty, upon request of the Section 16 Indemnified Person,
shall retain counsel reasonably satisfactory to the Section 16 Indemnified
Person to represent the Section 16 Indemnified Person and any others
Counterparty may designate in such proceeding and shall pay the fees and expenses
of such counsel related to such proceeding. 
Counterparty shall be relieved from liability to the extent that the
Section 16 Indemnified Person fails promptly to notify Counterparty of any
action commenced against it in respect of which indemnity may be sought
hereunder; provided, that failure to notify
Counterparty (x) shall not relieve Counterparty from any liability hereunder to
the extent it is not materially prejudiced as a result thereof and
(y) shall not, in any event, relieve Counterparty from any liability that
it may have otherwise than on account of this indemnity agreement.  Counterparty shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff,
Counterparty agrees to indemnify any Section 16 Indemnified Person from and
against any loss or liability by reason of such settlement or judgment.  Counterparty shall not, without the prior written
consent of the Section 16 Indemnified Person, effect any settlement of any
pending or threatened proceeding in respect of which any Section 16 Indemnified
Person is or could have been a party and indemnity could have been sought
hereunder by such Section 16 Indemnified Person, unless such settlement
includes an unconditional release of such Section 16 Indemnified Person from
all liability on claims that are the subject matter of such proceeding on terms
reasonably satisfactory to such Section 16 Indemnified Person.  If the indemnification provided for in this
paragraph is unavailable to a Section 16 Indemnified Person or insufficient in
respect of any losses, claims, damages or liabilities referred to therein, then
Counterparty, in lieu of indemnifying such Section 16 Indemnified Person thereunder,
shall contribute to the amount paid or payable by such Section 16 Indemnified
Person as a result of such losses, claims, damages or liabilities.  The remedies provided for in this paragraph
are not exclusive and shall not limit any rights or remedies that may otherwise
be available to any Section 16 Indemnified Person at law or in equity.  The indemnity and contribution agreements
contained in this paragraph shall remain operative and in full force and effect
regardless of the termination of the Transaction.

 

Alternative
Calculations and Deutsche Payment on Early Termination and on Certain
Extraordinary Events. 
If Deutsche owes Counterparty any amount in connection with the
Transaction pursuant to Sections 12.2, 12.3 (and “Consequences of Merger Events”
above), 12.6, 12.7 or 12.9 of the Equity Definitions (except in the case of an
Extraordinary Event in which the consideration or proceeds to be paid to
holders of Shares as a result of such event consists solely of cash) or
pursuant to Section 6(d)(ii) of the Agreement (except in the case of 

 11
 

 

an Event of Default in
which Counterparty is the Defaulting Party or a Termination Event in which
Counterparty is the Affected Party, other than (x) an Event of Default of the
type described in Section 5(a)(iii), (v), (vi) or (vii) of the Agreement or (y)
a Termination Event of the type described in Section 5(b)(i), (ii), (iii),
(iv), (v) or (vi) of the Agreement that in the case of either (x) or (y)
resulted from an event or events outside Counterparty’s control) (a “Deutsche Payment Obligation”), Counterparty shall have the
right, in its sole discretion, to require Deutsche to satisfy any such Deutsche
Payment Obligation by delivery of Termination Delivery Units (as defined below)
by giving irrevocable telephonic notice to Deutsche, confirmed in writing
within one Scheduled Trading Day, between the hours of 9:00 a.m. and 4:00 p.m.
New York time on the Early Termination Date or other date the transaction is
terminated, as applicable (“Notice of Deutsche
Termination Delivery”). 
Within a commercially reasonable period of time following receipt of a
Notice of Deutsche Termination Delivery, Deutsche shall deliver to Counterparty
a number of Termination Delivery Units having a cash value equal to the amount
of such Deutsche Payment Obligation (such number of Termination Delivery Units
to be delivered to be determined by the Calculation Agent as the number of
whole Termination Delivery Units that could be purchased over a commercially
reasonable period of time with the cash equivalent of such payment
obligation).  If the provisions set forth
in this paragraph are applicable, the provisions of Sections 9.8, 9.9,
9.10, 9.11 (modified as described above) and 9.12 of the Equity Definitions
shall be applicable, except that all references to “Shares” shall be read as
references to “Termination Delivery Units.”

 

“Termination
Delivery Unit” means (a) in the case of a Termination Event, an
Event of Default or an Extraordinary Event (other than an Insolvency,
Nationalization or Merger Event), one Share or (b) in the case of an
Insolvency, Nationalization or Merger Event, a unit consisting of the number or
amount of each type of property received by a holder of one Share (without
consideration of any requirement to pay cash or other consideration in lieu of
fractional amounts of any securities) in such Insolvency, Nationalization or
Merger Event.  If a Termination Delivery
Unit consists of property other than cash or New Shares and Counterparty provides
irrevocable written notice to the Calculation Agent on or prior to the Closing
Date that it elects to receive cash, New Shares or a combination thereof (in
such proportion as Counterparty designates) in lieu of such other property, the
Calculation Agent shall replace such property with cash, New Shares or a
combination thereof as components of a Termination Delivery Unit in such
amounts, as determined by the Calculation Agent in its discretion by
commercially reasonable means, as shall have a value equal to the value of the
property so replaced.  If such
Insolvency, Nationalization or Merger Event involves a choice of consideration
to be received by holders, such holder shall be deemed to have elected to
receive the maximum possible amount of cash.

 

Rule
10b-18.  Except as
disclosed to Deutsche in writing prior to the date on which the offering of the
Convertible Notes was first announced, Counterparty represents and warrants to
Deutsche that it has not made any purchases of blocks by or for itself or any
of its Affiliated Purchasers pursuant to the one block purchase per week
exception in Rule 10b-18(b)(4) under the Exchange Act during each of the four
calendar weeks preceding such date (“Rule 10b-18 purchase,”
“blocks” and “Affiliated
Purchaser” each as defined in Rule 10b-18 under the Exchange
Act).  Counterparty agrees and
acknowledges that it shall not, and shall cause its affiliates and Affiliated
Purchasers not to, directly or indirectly (including by means of a derivative
instrument) enter into any transaction to purchase any Shares during the period
beginning on such date and ending on the day on which Deutsche has informed
Counterparty in writing that it has completed all purchases of Shares to hedge
initially its exposure to the Transaction.

 

Regulation
M.  Counterparty was
not on the date on which the offering of the Convertible Notes was first
announced, has not since such date and prior to the date hereof, and is not on
the date hereof, engaged in a distribution, as such term is used in Regulation
M under the Exchange Act, of any securities of Counterparty, other than a
distribution meeting the requirements of the exception set forth in Sections
101(b)(10) and 102(b)(7) of Regulation M under the Exchange Act.  Counterparty shall not, until the day on
which Deutsche has informed Counterparty in writing that it has completed all
purchases of Shares to hedge initially its exposure to the Transaction, engage
in any such distribution.

 

No
Material Non-Public Information.  On each day (i) during the period beginning on
the day on which the offering of the Convertible Notes was first announced and
ending on the Effective Date and (ii) on which Counterparty designates
an Early Termination Date pursuant to “Additional
Termination Events” above, 

 12
 

 

Counterparty represents
and warrants to Deutsche that it is not aware of any material nonpublic
information concerning itself or the Shares.

 

Right to
Extend.  Deutsche may postpone any
Potential Exercise Date or postpone or extend any other date of valuation or
delivery with respect to some or all of the relevant Note Hedging Units (in
which event the Calculation Agent shall make appropriate adjustments to the
Settlement Amount for such Note Hedging Units), if Deutsche determines, in its
reasonable discretion, that such extension is reasonably necessary or
appropriate (i) to preserve, in light of existing liquidity conditions,
Deutsche’s hedging or hedge unwind activity hereunder if such activity relates
to a number of Shares equal to or greater than 5% of the Shares underlying the
Transaction or (ii) to enable Deutsche to effect purchases of Shares in
connection with its hedging, hedge unwind or settlement activity hereunder in a
manner that would, if Deutsche were Issuer or an affiliated purchaser of
Issuer, be in compliance with applicable legal, regulatory or self-regulatory
requirements, or with related policies and procedures applicable to Deutsche.

 

Transfer
or Assignment. 
Counterparty may not transfer any of its rights or obligations under the
Transaction without the prior written consent of Deutsche.  Deutsche may transfer or assign (1) all or a
portion of its Note Hedging Units hereunder at any time to any affiliate of
Deutsche or (2) the Terminated Portion under the conditions and pursuant to the
provisions set forth in the immediately following paragraph to any third party,
in each case with a rating for its long term, unsecured and unsubordinated
indebtedness of A+ or better by Standard & Poor’s Ratings Services or its
successor (“S&P”), or A1 or better by
Moody’s Investors Service, Inc. (“Moody’s”) or,
if either S&P or Moody’s ceases to rate such debt, at least an equivalent
rating or better by a substitute agency rating mutually agreed by Counterparty
and Deutsche, without the consent of Counterparty.

 

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

 

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

 

Severability;
Illegality.  If
compliance by either party with any provision of the Transaction would be
unenforceable or illegal, (a) the parties shall negotiate in good faith to
resolve such unenforceability or illegality in a manner that preserves the
economic benefits of the transactions contemplated hereby and (b) the
other provisions of the Transaction shall not be invalidated, but shall remain
in full force and effect.

 

Waiver of
Jury Trial.   EACH
PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING
RELATING TO THE TRANSACTION.  EACH PARTY
(I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF SUCH A 

 13
 

 

SUIT, ACTION OR
PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT
AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
PROVIDED HEREIN.

 

Early Unwind.  In the event the sale of Convertible Notes is
not consummated with the initial purchaser thereof for any reason by the close
of business in New York on October 30, 2006 (or such later date as agreed upon
by the parties) (October 30, 2006 or such later date as agreed upon being the “Early Unwind Date”), the Transaction shall automatically
terminate (the “Early Unwind”) on the Early Unwind
Date and (a) the Transaction and all of the respective rights and obligations
of Deutsche and Counterparty under the Transaction shall be cancelled and
terminated and (b) each party shall be released and discharged by the other party
from and agrees not to make any claim against the other party with respect to
any obligations or liabilities of the other party arising out of and to be
performed in connection with the Transaction either prior to or after the Early
Unwind Date; provided that, other than in
cases involving a breach of the Purchase Agreement by Deutsche or an affiliate
thereof, Counterparty shall purchase from Deutsche on the Early Unwind Date all
Shares purchased by Deutsche or one or more of its affiliates, and assume, or
reimburse the cost of, derivatives entered into by Deutsche or one or more of
its affiliates, in each case, in connection with hedging the Transaction and
the unwind of such hedging activities. 
The amount payable by Counterparty shall be Deutsche’s (or its
affiliates) actual cost of such Shares and unwind cost of such derivatives as
Deutsche informs Counterparty and shall be paid in immediately available funds
on the Early Unwind Date.  Deutsche and
Counterparty represent and acknowledge to the other that, subject to the
proviso included in the preceding sentence, upon an Early Unwind, all
obligations with respect to the Transaction shall be deemed fully and finally
discharged.

 

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

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

(a) Counterparty

United
Therapeutics Corporation

1110 Spring St.

Silver Spring, MD 20910

Attention: John Ferrari, Chief Financial Officer

Fax:  (301) 608-3049

(b) Deutsche

Deutsche
Bank AG London

c/o
Deutsche Bank Securities Inc. 

60 Wall Street 

New York, NY 10005

Attention: Documentation
Department

 14
 

 

 

This Confirmation may be
executed in several counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument.

Counterparty hereby
agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below
and returning to Deutsche a facsimile of the fully-executed Confirmation to
Deutsche at 44 113 336 2009.  Originals
shall be provided for your execution upon your request.

We are very pleased to
have executed the Transaction with you and we look forward to completing other
transactions with you in the near future.

Very truly yours,

	
  DEUTSCHE BANK AG LONDON

  
	
   

  
	
   

  
	
  By:

  	
  /s/ LEE
  FRANKENFIELD

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ ANDREA
  LEUNG

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEUTSCHE BANK SECURITIES INC.,

  	
   

  
	
  acting solely as Agent in connection with this
  Transaction

  
	
   

  
	
   

  
	
  By:

  	
  /s/ LEE
  FRANKENFIELD

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ ANDREA
  LEUNG

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

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

  
	
   

  
	
   

  
	
  UNITED THERAPEUTICS CORPORATION

  
	
   

  
	
  By:

  	
  /s/ JOHN
  FERRARI

  	
   

  
	
   

  	
  Name: John
  Ferrari

  	
   

  
	
   

  	
  Title:  Chief
  Financial Officer

  	
   

  

 

 15

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