EXHIBIT 10.1

 

ICOS CORPORATION

 

AMENDMENT NO. 1 TO RIGHTS AGREEMENT

 

This Amendment No. 1 to Rights Agreement (this “Amendment No. 1”) is made as of
September 26, 2005 by and among ICOS Corporation, a Delaware corporation (the
“Company”), ICOS Washington Corporation, a Washington corporation and wholly
owned subsidiary of the Company (“ICOS WA”), and Mellon Investor Services LLC, a
New Jersey limited liability company, as rights agent (the “Rights Agent”) and
amends that certain Rights Agreement dated as of August 9, 2002 by and between
the Company and the Rights Agent (the “Rights Agreement”). Any capitalized terms
used but not specifically defined in this Amendment No. 1 shall have the
meanings given those terms in the Rights Agreement.

 

A. Pursuant to the Agreement and Plan of Merger, dated July 22, 2005, between
the Company and ICOS WA, the Company will reincorporate from the state of
Delaware to the state of Washington by merging (such merger, the “Merger”) with
and into ICOS WA.

 

B. Upon the effectiveness of the Merger, the separate existence of the Company
shall cease, and the Merger will have the effects set forth in the applicable
provisions of the Washington Business Corporations Act and the Delaware General
Corporation Law.

 

C. Upon the effectiveness of the Merger, each issued and outstanding share of
common stock, par value $0.01 per share, of the Company (“Company Common Stock”)
will be converted automatically and without any further action on the part of
the Company into one fully paid and nonassessable share of common stock, par
value $0.01 per share, of ICOS WA (“ICOS WA Common Stock”).

 

D. The Company and the Rights Agent intend to amend the Rights Agreement to
confirm that ICOS WA will succeed to all of the rights and obligations of the
Company under the Rights Agreement and to reflect certain conforming changes in
this Amendment.

 

E. Pursuant to and in compliance with Section 26 of the Rights Agreement, the
Company directs the Rights Agent to join the Company in amending the Rights
Agreement as set forth in this Amendment.

 

NOW THEREFORE, in consideration of the premises and the mutual agreements set
forth herein and in the Rights Agreement, the parties hereto agree as follows:

 

  1. Succession. Upon the effectiveness of the Merger, ICOS WA will succeed to
all of the rights and obligations of the Company under the Rights Agreement and
replace the Company as “the Company” under the Rights Agreement and the exhibits
to the Rights Agreement.

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  2. Right to Purchase Preferred Stock. Upon the effectiveness of the Merger,
each right (a “Delaware Right”) theretofore issued by the Company that attached
to a share of Company Common Stock will be converted into a Right (a “Washington
Right”) to purchase from ICOS WA one one-hundredth of a share of Series A Junior
Participating Preferred Stock (“Preferred Stock”) of ICOS WA for the purchase
price of $250.00, subject to adjustment as provided in the Rights Agreement (the
“Purchase Price”), such Right being attached to the share of ICOS WA Common
Stock into which such share of Company Common Stock will be converted into in
the Merger.

 

  3. References in Rights Agreement. Upon the effectiveness of the Merger, all
references in the Rights Agreement and the exhibits to the Rights Agreement to
Company Common Stock will become references to ICOS WA Common Stock, all
references to Preferred Stock of the Company will become references to Preferred
Stock of ICOS WA, all references to other securities of the Company will become
references to other securities of ICOS WA, all references to Rights will be to
Rights with respect to Preferred Stock of ICOS WA rather than to Rights with
respect to Preferred Stock of the Company and all references to stockholders
will become references to shareholders.

 

  4. Amendment of Certain Provisions.

 

  a) Upon the effectiveness of the Merger, Exhibit A shall be replaced in its
entirety with the Certificate of Designation of Series A Junior Participating
Preferred Stock of ICOS WA filed with the Washington Secretary of State on
August 1, 2005.

 

  b) Upon the effectiveness of the Merger, Section 30 of the Rights Agreement is
amended by substituting “Washington” for “Delaware.”

 

  5. Miscellaneous.

 

  a) This Amendment shall be governed by and construed in accordance with the
laws of the state of Washington; provided, however, that all provisions
regarding the rights, duties and obligations of the Rights Agent shall be
governed by and construed in accordance with the laws of the state of New York
applicable to contracts made and to be performed entirely within such state.

 

  b) This Amendment may be executed in counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and both such
counterparts shall together constitute but one and the same instrument.

 

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  c) Except as expressly set forth herein, this Amendment shall not by
implication or otherwise alter, modify, amend or in any way affect any of the
terms, conditions, obligations, covenants or agreements contained in the Rights
Agreement, all of which are ratified and affirmed in all respects and shall
continue in full force and effect.

 

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IN WITNESS WHEREOF, the Company, the Rights Agent and ICOS WA have caused this
Amendment No. 1 to be duly executed, all as of the day and year first above
written.

 

ICOS CORPORATION,

a Delaware corporation

By:

/s/ JOHN B. KLIEWER

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Name:   John B. Kliewer Title:   Vice President and General Counsel

ICOS WASHINGTON CORPORATION,

a Washington corporation

By:

/s/ JOHN B. KLIEWER

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Name:   John B. Kliewer Title:   Secretary and General Counsel

MELLON INVESTOR SERVICES LLC,

a New Jersey limited liability company

By:    

/s/ THOMAS L. COOPER

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Name:   Thomas L. Cooper Title:   Client Relationship Executive

 

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