Document:

Exhibit

EXHIBIT 10.2

REGISTRATION RIGHTS AGREEMENT

REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of November 5, 2019, by and between ATHERSYS, INC., a Delaware corporation (the “Company”), and ASPIRE CAPITAL FUND, LLC, an Illinois limited liability company (together with its permitted assigns, the “Buyer”).  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Common Stock Purchase Agreement by and between the parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”).

WHEREAS:

A.    Upon the terms and subject to the conditions of the Purchase Agreement, (i) the Company has agreed to issue to the Buyer, and the Buyer has agreed to purchase,  up to One Hundred Million Dollars ($100,000,000) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), pursuant to Section 1 of the Purchase Agreement (such shares, the “Purchase Shares”), and (ii) the Company has agreed to issue to the Buyer such number of shares of Common Stock as is required pursuant to Section 4(e) of the Purchase Agreement (the “Commitment Shares”); and

B.    To induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “1933 Act”), and applicable state securities laws.

NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows:

1.    DEFINITIONS.

As used in this Agreement, the following terms shall have the following meanings:

a.    “Person” means any person or entity including any corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

b.    “Register,” “registered,” and “registration” refer to a registration effected by preparing and filing one or more registration statements of the Company in compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous basis (“Rule 415”), and the declaration or ordering of effectiveness of such registration statement(s) by the U.S. Securities and Exchange Commission (the “SEC”).
    
c.    “Registrable Securities” means (i) all of the Commitment Shares and (ii) such number of Purchase Shares as reasonably determined by the Company, which may from time to time be, issued or issuable to the Buyer upon purchases of the Available Amount under the Purchase Agreement, and any shares of capital stock issued or issuable with respect to the Purchase Shares, the Commitment Shares or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization, exchange or similar event, without regard to any limitation on purchases under the Purchase Agreement.

d.    “Registration Statement” means a registration statement of the Company covering only the sale of the Registrable Securities.

2.    REGISTRATION.

a.    Mandatory Registration.  The Company shall within Twenty (20) Business Days from the date hereof file with the SEC the Registration Statement. The Registration Statement shall register only the Registrable Securities and no other securities of the Company.  The Buyer and its counsel shall have a reasonable opportunity to review and comment upon such Registration Statement or any amendment to such Registration Statement and any related prospectus prior to its filing with the SEC. The Buyer shall furnish all information reasonably requested by the Company for inclusion therein.  The Company shall use its reasonable best efforts to have the Registration Statement or any amendment declared effective by the SEC as soon as reasonably practicable.  Subject to Section 3(e), the Company shall use reasonable best efforts to keep the Registration Statement effective pursuant to Rule 415 promulgated under the 1933 Act and available for sales of all of the Registrable Securities at all times until the earlier of (i) the date as of which the Buyer may sell all of the Registrable Securities without restriction pursuant to Rule 144 promulgated under the 1933 Act (or successor thereto) or (ii) the date on which the Buyer shall have sold all the Registrable Securities and no Available Amount remains under the Purchase Agreement (the “Registration Period”).  The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any 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, in light of the circumstances under which they were made, not misleading.  

b.    Rule 424 Prospectus.  The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated under the 1933 Act, a prospectus and prospectus supplements, if any, to be used in connection with sales of the Registrable Securities under the Registration Statement.  The Buyer and its counsel shall have one (1) Business Day to review and comment upon such prospectus prior to its filing with the SEC.  The Buyer shall use its reasonable best efforts to comment upon such prospectus within one (1) Business Day from the date the Buyer receives the final version of such prospectus. 

c.    Sufficient Number of Shares Registered.  In the event the number of shares available under the Registration Statement is insufficient to cover the Registrable Securities, the Company shall, to the extent necessary and permissible, amend the Registration Statement or file a new registration statement (a “New Registration Statement”), so as to cover all such Registrable Securities as soon as practicable, but in any event not later than ten (10) Business Days after the necessity therefor arises.  The Company shall use its reasonable best efforts to have such amendment and/or New Registration Statement become effective as soon as reasonably practicable following the filing thereof.    

3.    RELATED OBLIGATIONS.

With respect to the Registration Statement and whenever any Registrable Securities are to be registered pursuant to Sections 2(a) and (c), including on any New Registration Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

a.    The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any Registration Statement and the prospectus used in connection with such Registration Statement, as may be necessary to keep the Registration Statement or any New Registration Statement effective at all times during the Registration Period, subject to Section 3(e) hereof and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement.  Should the Company file a post-effective amendment to the Registration Statement or a New Registration Statement, the Company will use its reasonable best efforts to have such filing declared effective by the SEC within thirty (30) consecutive Business Days as of the date of filing, which such period shall be extended for an additional thirty (30) Business Days if the Company receives a comment letter from the SEC in connection therewith.

b.    The Company shall submit to the Buyer for review and comment any disclosure in the Registration Statement, any New Registration Statement and all amendments and supplements thereto (other than prospectus supplements that consist only of a copy of a filed Form 10‐Q or a Current Report on Form 8-K or any amendment as a result of the Company’s filing of a document that is incorporated by reference into the Registration Statement or New Registration Statement) containing information provided by the Buyer for inclusion in such document and any descriptions or disclosure regarding the Buyer, the Purchase Agreement, including the transaction contemplated thereby, or this Agreement at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form to which Buyer reasonably and timely objects.  Upon request of the Buyer, the Company shall provide to the Buyer all disclosure in the Registration Statement or any New Registration Statement and all amendments and supplements thereto (other than prospectus supplements that consist only of a copy of a filed Form 10‐Q or Current Report on Form 8-K or any amendment as a result of the Company’s filing of a document that is incorporated by reference into the Registration Statement or New Registration Statement) at least one (1) Business Day prior to their filing with the SEC, and not file any document in a form to which Buyer reasonably and timely objects.  The Buyer shall use its reasonable best efforts to comment upon the Registration Statement or any New Registration Statement and any amendments or supplements thereto within one (1) Business Day from the date the Buyer receives the final version thereof.  The Company shall furnish to the Buyer, without charge, any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration Statement.

c.    Upon request of the Buyer, the Company shall furnish to the Buyer, (i) promptly after the same is prepared and filed with the SEC, at least one copy of the Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of a Registration Statement, a copy of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as the Buyer may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as the Buyer may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Buyer.

d.    The Company shall use reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification is available, the Registrable Securities covered by a Registration Statement under such other securities or “blue sky” laws of such jurisdictions in the United States as the Buyer reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction.  The Company shall promptly notify the Buyer who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

e.    As promptly as reasonably practicable after becoming aware of such event or facts, the Company shall notify the Buyer in writing if the Company has determined that the prospectus included in any Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly prepare a prospectus supplement or amendment to such Registration Statement to correct such untrue statement or omission, and, upon the Buyer’s request, deliver a copy of such prospectus supplement or amendment to the Buyer.  In providing this notice to the Buyer, the Company shall not include any other information about the facts underlying the Company’s determination and shall not in any way communicate any material nonpublic information about the Company or the Common Stock to the Buyer.  The Company shall also promptly notify the Buyer in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such 

effectiveness shall be delivered to the Buyer by facsimile or e-mail on the same day of such effectiveness), (ii) of any request by the SEC for amendments or supplements to any Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

f.    The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of any Registration Statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practical time and to notify the Buyer of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

g.    The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities if the Principal Market (as such term is defined in the Purchase Agreement) is an automated quotation system.  The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

h.    The Company shall cooperate with the Buyer to facilitate the timely preparation and delivery of certificates or book-entry forms (not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to any Registration Statement and enable such certificates or book-entry forms to be in such denominations or amounts as the Buyer may reasonably request and registered in such names as the Buyer may request.

i.    The Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

j.    If reasonably requested by the Buyer, the Company shall (i) promptly incorporate in a prospectus supplement or post-effective amendment to the Registration Statement such information as the Buyer believes should be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of such prospectus supplement or post-effective amendment promptly after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement (including by means of any document incorporated therein by reference).

k.    The Company shall use its reasonable best efforts to cause the Registrable Securities covered by any Registration Statement to be registered with or approved by such other governmental agencies or authorities in the United States as may be necessary to consummate the disposition of such Registrable Securities.

l.    Within one (1) Business Day after any Registration Statement is ordered effective by the SEC, the Company shall deliver to the Transfer Agent for such Registrable Securities (with copies to the Buyer) confirmation that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.  Thereafter, if reasonably requested by the Buyer at any time, the Company shall deliver to the Buyer a written confirmation of whether or not the effectiveness of such Registration Statement has lapsed at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not the Registration Statement is currently effective and available to the Buyer for sale of all of the Registrable Securities.  

m.    The Company agrees to take all other reasonable actions as necessary and reasonably requested by the Buyer to expedite and facilitate disposition by the Buyer of Registrable Securities pursuant to any Registration Statement.

4.    OBLIGATIONS OF THE BUYER.

a.    The Buyer has furnished to the Company in Exhibit B hereto such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. The Company shall notify the Buyer in writing of any other information the Company reasonably requires from the Buyer in connection with any Registration Statement hereunder. The Buyer will as promptly as practicable notify the Company of any material change in the information set forth in Exhibit B, other than changes in its ownership of the Common Stock.

b.    The Buyer agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any amendments and supplements to any Registration Statement hereunder.

c.    The Buyer agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind described in Section 3(f) or any notice of the kind described in the first sentence of 3(e), the Buyer will immediately discontinue disposition of Registrable Securities pursuant to any registration statement(s) covering such Registrable Securities until the Buyer’s receipt (which may be accomplished through electronic delivery) of the copies of the filed supplemented or amended prospectus contemplated by Section 3(f) or the first sentence of 3(e).  In addition, upon receipt of any notice from the Company of the kind described in the first sentence of Section 3(e), the Buyer will immediately discontinue purchases or sales of any securities of the Company unless such purchases or sales are in compliance with applicable U.S. securities laws.  Notwithstanding anything to the contrary, the Company shall cause its Transfer Agent to deliver as promptly as practicable shares of Common Stock without any restrictive legend in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which the Buyer has received a Purchase Notice or VWAP Purchase Notice (both as defined in the Purchase Agreement) prior to the Buyer’s receipt of a notice from the Company of the happening of any event of the kind described in Section 3(f) or the first sentence of 3(e) and for which the Buyer has not yet settled.

5.    EXPENSES OF REGISTRATION.

All reasonable expenses of the Company, other than sales or brokerage commissions and fees and disbursements of counsel for the Buyer, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by the Company.

6.    INDEMNIFICATION.

a.    To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Buyer, each Person, if any, who controls the Buyer, the members, the directors, officers, partners, employees, agents, representatives of the Buyer and each Person, if any, who controls the Buyer within the meaning of the 1933 Act or the Securities Exchange Act of 1934, as amended (the “1934 Act”) (each, an “Indemnified Person”), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement or expenses, (collectively, “Claims”) reasonably incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency or body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in the Registration Statement, any New Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or 

alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading, or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”).  The Company shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.  Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (A) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement, any New Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company; (B) with respect to any superseded prospectus, shall not inure to the benefit of any such person from whom the person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any other Indemnified Person) if the untrue statement or omission of material fact contained in the superseded prospectus was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e), and the Buyer was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise to a violation; (C) shall not be available to the extent such Claim is based on a failure of the Buyer to deliver, or to cause to be delivered, the prospectus made available by the Company, if such prospectus was theretofore made available by the Company pursuant to Section 3(c) or Section 3(e); and (D) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 9.

b.    In connection with the Registration Statement or any New Registration Statement, the Buyer agrees to indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers who signs the Registration Statement or any New Registration Statement, each Person, if any, who controls the Company within the meaning of the 1933 Act or the 1934 Act (collectively and together with an Indemnified Person, an “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information about the Buyer set forth on Exhibit B attached hereto or updated from time to time in writing by the Buyer and furnished to the Company by the Buyer expressly for  use in the Registration Statement or any New Registration Statement or from the failure of the Buyer to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e); and, subject to Section 6(d), the Buyer will reimburse any legal or other expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Buyer, which consent shall not be unreasonably withheld; provided, further, however, that the Buyer shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Buyer as a result of the sale of Registrable Securities pursuant to such registration statement.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 9. 

c.    Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so 

desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be, and upon such notice, the indemnifying party shall not be liable to the Indemnified Person or Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Person or Indemnified Party in connection with the defense thereof; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised as to the status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent.  No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such claim or litigation.  Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

d.    The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.  Any person receiving a payment pursuant to this Section 6 which person is later determined to not be entitled to such payment shall return such payment to the person making it.

e.    The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

7.    CONTRIBUTION.

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

8.    REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

With a view to making available to the Buyer the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Buyer to sell securities of the Company to the public without registration (“Rule 144”), the Company agrees, at the Company’s sole expense, to:

a.    make and keep public information available, as those terms are understood and defined in Rule 144;

b.    file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required to satisfy the current public information requirements of Rule 144; and

c.    furnish to the Buyer so long as the Buyer owns Registrable Securities, as promptly as practicable at Buyer’s request, (i) a written statement by the Company that it has complied in all material respects with the requirements of Rule 144(c)(1)(i) and (ii), and (ii) such other information, if any, as may be reasonably requested to permit the Buyer to sell such securities pursuant to Rule 144 without registration.

d.    take such additional action as is requested by the Buyer to enable the Buyer to sell the Registrable Securities pursuant to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company’s Transfer Agent as may be reasonably requested from time to time by the Buyer and otherwise fully cooperate with the Buyer and the Buyer’s broker to effect such sale of securities pursuant to Rule 144.

The Company agrees that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Buyer shall, whether or not it is pursuing any remedies at law, be entitled to equitable relief in the form of a preliminary or permanent injunctions, without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

9.    ASSIGNMENT OF REGISTRATION RIGHTS.

The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyer.  The Buyer may not assign its rights under this Agreement without the prior written consent of the Company. 

10.    AMENDMENT OF REGISTRATION RIGHTS.

Provisions of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Buyer.

11.    MISCELLANEOUS.

a.    Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iii) upon receipt, when sent by electronic message (provided the recipient responds to the message and confirmation of both electronic messages are kept on file by the sending party); or (iv) one (1) Business Day after timely deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall be:

If to the Company:

Athersys, Inc.
3201 Carnegie Avenue
Cleveland, Ohio 44115-2634
Telephone:    216-431-9900
Facsimile:    216-432-2461
Attention:      Laura K. Campbell
Senior Vice President of Finance
Email:        lcampbell@athersys.com

With a copy (which shall not constitute notice) to:

Jones Day
901 Lakeside Avenue
Cleveland, Ohio 44114
Telephone:     216-586-7103
Facsimile:    216-579-0212
Attention:    Michael J. Solecki
Email:        mjsolecki@jonesday.com

If to the Buyer:

Aspire Capital Fund, LLC
155 North Wacker Drive, Suite 1600
Chicago, IL 60606 
Telephone:    312-658-0400
Facsimile:    312-658-4005
Attention:    Steven G. Martin
Email:        smartin@aspirecapital.com

With a copy (which shall not constitute notice) to:

Morrison & Foerster LLP
2000 Pennsylvania Avenue, NW, Suite 6000
Washington, DC 20006
Telephone:    202-778-1611
Facsimile:    202-887-0763
Attention:    Martin P. Dunn, Esq.
Email:        mdunn@mofo.com

or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party at least one (1) Business Day prior to the effectiveness of such change.  Written confirmation of receipt (A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, and recipient facsimile number, (C) electronically generated by the sender’s electronic mail containing the time, date and recipient email address or (D) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of receipt in accordance with clause (i), (ii), (iii) or (iv) above, respectively.  Any party to this Agreement may give any notice or other communication hereunder using any other means (including messenger service, ordinary mail or electronic mail), but no such notice or other communication shall be deemed to have been duly given unless it actually is received by the party for whom it is intended.

b.    No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

c.    The corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders.  All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Chicago for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient 

forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

d.    This Agreement, the Purchase Agreement and the other Transaction Documents constitute the entire understanding among the parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.  This Agreement, the Purchase Agreement and the other Transaction Documents supersede all other prior oral or written agreements between the Buyer, the Company, their affiliates and persons acting on their behalf with respect to the subject matter hereof and thereof.

e.    Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

f.    The headings in this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

g.    This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile or pdf (or other electronic reproduction of a) signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or pdf (or other electronic reproduction of a) signature.

h.    Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

i.    The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.

j.    This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

* * * * *

IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above written.

THE COMPANY:

ATHERSYS, INC.

By: /s/ Gil Van Bokkelen
Name:  Gil Van Bokkelen 
Title:  Chairman and Chief Executive Officer   

BUYER:

ASPIRE CAPITAL FUND, LLC
BY: ASPIRE CAPITAL PARTNERS, LLC
BY: SGM HOLDINGS CORP. 

By: /s/ Steven G. Martin
Name: Steven G. Martin
Title:    President

EXHIBIT A
    
FORM OF NOTICE OF EFFECTIVENESSOF REGISTRATION STATEMENT

[Date]

Computershare Investor Services
250 Royall Street
Canton, MA 02021
Attention: Sharon Boughter
    
Re: ATHERSYS, INC.

Ladies and Gentlemen:

We refer to that certain Common Stock Purchase Agreement, dated as of November 5, 2019 (the “Purchase Agreement”), entered into by and between ATHERSYS, INC., a Delaware corporation (the “Company”) and ASPIRE CAPITAL FUND, LLC (the “Buyer”) pursuant to which the Company has agreed to issue to the Buyer shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”), in an amount up to One Hundred Million Dollars ($100,000,000), in accordance with the terms of the Purchase Agreement. In connection with the transactions contemplated by the Purchase Agreement, the Company has registered with the U.S. Securities and Exchange Commission (the “SEC”) the sale by the Buyer of the following shares of Common Stock:

(1)                up to 30,650,000 shares of Common Stock with an aggregate value of up to $100,000,000 to be issued upon purchase from the Company by the Buyer from time to time (the “Purchase Shares”); and

(2)           350,000 shares of Common Stock which have been issued to the Buyer as a commitment fee (the “Commitment Shares”). 

In connection with the transactions contemplated by the Purchase Agreement, the Company has filed a registration statement on Form S-3 (File No. 333-_________) (the “Registration Statement”) with the SEC relating to the sale by the Buyer of the Purchase Shares and the Commitment Shares.  Accordingly, we advise you that (i) the SEC has entered an order declaring the Registration Statement effective under the Securities Act of 1933 Act (the “1933 Act”) at ___ [A./P.]M. on __________, 2019, (ii) we have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and (iii) the Purchase Shares and the Commitment Shares are available for sale under the 1933 Act pursuant to the Registration Statement.  Accordingly, and in reliance on certain covenants made by the Buyer regarding the manner of sale of the Shares, certificates or book-entry forms representing the Shares may be issued without any restrictive legend. 

Very truly yours,

By:____________________
 
CC:    Aspire Capital Fund, LLC

EXHIBIT B

Information About The Buyer Furnished To The Company By The Buyer
Expressly For Use In Connection With The Registration Statement and Prospectus

Aspire Capital Partners LLC (“Aspire Partners”) is the Managing Member of Aspire Capital Fund, LLC (“Aspire Fund”).  SGM Holdings Corp (“SGM”) is the Managing Member of Aspire Partners.  Mr. Steven G. Martin (“Mr. Martin”) is the president and sole shareholder of SGM, as well as a principal of Aspire Partners.  Mr. Erik J. Brown (“Mr. Brown”) is the president and sole shareholder of Red Cedar Capital Corp (“Red Cedar”), which is a principal of Aspire Partners. Mr. Christos Komissopoulos (“Mr. Komissopoulos”) is president and sole shareholder of Chrisko Investors Inc. (“Chrisko”), which is a principal of Aspire Partners.  Mr. William F. Blank, III (“Mr. Blank”) is president and sole shareholder of WML Ventures Corp. (“WML Ventures”), which is a principal of Aspire Partners.  Each of Aspire Partners, SGM, Red Cedar, Chrisko, WML Ventures, Mr. Martin, Mr. Brown, Mr. Komissopoulos and Mr. Blank may be deemed to be a beneficial owner of common stock held by Aspire Fund. Each of Aspire Partners, SGM, Red Cedar, Chrisko, WML Ventures, Mr. Martin, Mr. Brown, Mr. Komissopoulos and Mr. Blank disclaims beneficial ownership of the common stock held by Aspire Fund.

PLAN OF DISTRIBUTION
The common stock may be sold or distributed from time to time by the selling stockholder directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of the common stock offered by this prospectus may be effected in one or more of the following methods: 
		
	•
	ordinary brokers’ transactions;

		
	•
	transactions involving cross or block trades;

		
	•
	through brokers, dealers, or underwriters who may act solely as agents;

		
	•
	“at the market” into an existing market for the common stock;

		
	•
	in other ways not involving market makers or established business markets, including     direct sales to purchasers or sales effected through agents;

		
	•
	in privately negotiated transactions; or

		
	•
	any combination of the foregoing. 

In order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers. In addition, in certain states, the shares may not be sold unless they have been registered or qualified for sale in the state or an exemption from the registration or qualification requirement is available and complied with.
The selling stockholder may transfer the shares of common stock by other means not described in this prospectus.
Brokers, dealers, underwriters, or agents participating in the distribution of the shares as agents may receive compensation in the form of commissions, discounts, or concessions from the selling stockholder and/or purchasers of the common stock for whom the broker-dealers may act as agent. Aspire Capital has informed us that each such broker-dealer will receive commissions from Aspire Capital which will not exceed customary brokerage commissions.

The selling stockholder and its affiliates have agreed not to engage in any direct or indirect short selling or hedging of our common stock during the term of the Purchase Agreement.

The selling stockholder is an “underwriter” within the meaning of the Securities Act. 

We have advised the selling stockholder that while it is engaged in a distribution of the shares included in this prospectus, it is required to comply with Regulation M promulgated under the Securities Exchange Act of 1934, as amended.  With certain exceptions, Regulation M precludes the selling stockholder, any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase, any security which is the subject of the distribution until the entire distribution is complete.  Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with the distribution of that security.  All of the foregoing may affect the marketability of the shares offered by this prospectus. 

We may suspend the sale of shares by the selling stockholder pursuant to this prospectus for certain periods of time for certain reasons, including if the prospectus is required to be supplemented or amended to include additional material information. 

This offering as it relates to Aspire Capital will terminate on the date that all shares offered by this prospectus have been sold by Aspire Capital.EX-4.3

 Exhibit 4.3 

ELI LILLY AND COMPANY 

Officers’ Certificate Pursuant to 

Section 3.01 of the Indenture 

November     , 2019 

 
 The undersigned, Philip Johnson,
Senior Vice President and Treasurer of Eli Lilly and Company, an Indiana corporation (the “Company”), and Crystal Williams, Assistant General Counsel and Assistant Corporate Secretary of the Company, pursuant to Section 3.01 of
the Indenture dated as of February 1, 1991 (the “Indenture”), between the Company and Deutsche Bank Trust Company Americas (as successor to Citibank, N.A.), as trustee (the “Trustee”), as authorized by
resolutions of the Board of Directors of the Company, dated October 21, 2019, do hereby certify as follows: 

(i)    There are hereby established two series of debt securities to be issued under the Indenture. The title of such
series of the debt securities shall be the 0.625% Notes due 2031” (the “0.625% Notes”) and the “1.700% Notes due 2049” (the “1.700% Notes” and, together with the 0.625% Notes, the
“Notes”), respectively. 
 (ii)    The two series of Notes shall be in the forms, and shall have the
terms, set forth as Annex A-1 and Annex A-2, respectively, attached hereto. The Notes shall be issued in the form of Registered Securities and shall not be
issued in the form of Bearer Securities. 
 (iii)    The aggregate principal amount of the Notes which may initially be
authenticated and delivered under the Indenture (except for Notes authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section 3.04, 3.05, 3.06, 4.03 or 10.04 of the Indenture)
will be six hundred million euros (€600,000,000) with respect to the 0.625% Notes and one billion euros (€1,000,000,000) with respect to the 1.700% Notes; provided, however, that, without the consent of the Holders of any
Securities, the Company may at any time issue additional Securities having the same terms as the Notes of a particular series other than the date of original issuance and the first Interest Payment Date applicable thereto. Any such additional
Securities will constitute a single series of Securities with such Notes under the Indenture. 
 (iv)    The principal
amount of each Note shall be payable on November 1, 2031 with respect to the 0.625% Notes and November 1, 2049 with respect to the 1.700% Notes, unless redeemed prior to such time in accordance with clause (xii) below. 

(v)    The 0.625% Notes will bear interest at the rate of 0.625% per annum from November 7, 2019. The 1.700% Notes
will bear interest at the rate of 1.700% per annum from November 7, 2019. The Interest Payment Date for the 0.625% Notes shall be November 1 of each year, commencing on November 1, 2020. The Interest Payment Date for the 1.700% Notes
shall be November 1 of each year, commencing on November 1, 2020. 
 (vi)    Interest will be payable to the
person in whose name a Note (or any Predecessor Security) is registered at the close of business on the Regular Record Date immediately preceding the Interest Payment Date (or, in the case of Defaulted Interest, in the manner provided in
Section 3.07 in the Indenture). The “Regular Record Date” for each series of 

 
Notes shall be October 15 (whether or not a Business Day (as defined in each series of Notes)). Interest on the Notes will be computed on the basis of the actual number of days in the period
for which interest is being calculated and the actual number of days from and including the last Interest Payment Date on the Notes (or from November 7, 2019, if no interest has been paid on the Notes), to but excluding the next scheduled
Interest Payment Date. This payment convention, which is set forth in the rulebook of the International Capital Market Association, is referred to as ACTUAL/ACTUAL (ICMA). 

(vii)    The Company will at all times maintain a Place of Payment for the Notes in the Borough of Manhattan, The City of
New York. The Company initially appoints Deutsche Bank Trust Company Americas, with a corporate trust office at 60 Wall Street, 16th Floor, New York, New York 10005, for such purpose. 

(viii)    The Trustee is hereby appointed as the initial Paying Agent and the initial Security Registrar with respect to
the Notes. 
 (ix)    Section 3.11 of the Indenture shall not be applicable to the Notes. 

(x)    The Notes shall be denominated, and amounts due thereon shall be payable, solely in euros; provided,
however, that if, on or after November 7, 2019, the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the euro is no longer being used by the then
member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes shall
be made in Dollars until the euro is again available to the Company or so used. The amount payable on any date in euro shall be converted into Dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second
Business Day prior to the relevant date for the payment of principal, premium, if any, and interest, if any, on the Notes or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the most recent
euro/Dollar exchange rate available on or prior to the second Business Day prior to the relevant date for the payment of principal, premium, if any, and interest, if any, on the Notes, as reported by Bloomberg. The Company shall notify the Trustee
in writing if any payment on this Note is to be made in Dollars. Upon depositing such payment with a Paying Agent, the Company shall deliver an Officer’s Certificate, to the Trustee and such Paying Agent certifying that (1) pursuant to the
terms of the Indenture and the Notes, such payment may be made in Dollars, (2) the conversion rate, (3) such conversion rate was determined in accordance with the terms of the Indenture and the Notes, and (4) the amount of the payment
in Dollars. Any payment in respect of a Note so made in Dollars will not constitute an Event of Default under the Note or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for any calculation or conversion in
connection with the foregoing.  
 (xi)    The Notes shall not be subject to any sinking
fund or analogous provisions, and no Holder of the Notes shall have any right to cause the Company to redeem any Notes at the option of the Holder. 

  
 2 

 (xii)    The Notes shall be redeemable, in whole or in part, at the
option of the Company at any time at the redemption prices determined in accordance with, and upon the terms and the conditions set forth in, the Notes and the Indenture. In addition, the Notes shall be redeemable, at the option of the Company, in
whole, but not in part, upon the occurrence of certain tax events, at the redemption prices determined in accordance with, and upon the terms and the conditions set forth in, the Notes and the Indenture. 

(xiii)    The Notes shall be issuable upon original issuance in the form of Global Securities registered in the name of
Euroclear Bank S.A./N.V. and Clearstream Banking, société anonyme, or their nominee. The Global Securities representing the Notes may be exchanged for definitive Notes only in the circumstances set forth in the seventh or eighth
paragraph of Section 3.05 of the Indenture and in accordance with Section 3.05 of the Indenture. 

(xiv)    The Notes shall be issued in minimum denominations of one hundred thousand euros (€100,000.00) and any
integral multiples of one thousand euros (€1,000.00) in excess thereof. 
 (xv)    Section 12.02 of the Indenture
shall be applicable to the Notes. 
 (xvi)    The Notes shall rank equally and pari passu with all other
unsecured and unsubordinated indebtedness of the Company. 
 (xvii)    The Company shall pay additional interest on the
Notes in certain circumstances, in accordance with, and upon the terms and conditions set forth in, the Notes and the Indenture. 

(xviii)    For purposes of the Notes, the following terms shall have the meanings set forth below: 

(1)    “Discharged” means that the Company will be deemed to have paid and discharged the entire indebtedness
represented by, and obligations under, the Securities of the series as to which Section 12.02 is specified as applicable and to have satisfied all the obligations under this Indenture relating to the Securities of such series (and the Trustee,
at the expense of the Company, will execute proper instruments acknowledging the same), except (A) the rights of Holders thereof to receive, from the trust fund described in Section 12.02(q)(1), payment of the principal of and the
interest, if any, on such Securities when such payments are due, (B) the Company’s obligations with respect to such Securities under Sections 3.05 and 3.06 (insofar as applicable to Securities of such series), 12.02 and 5.02 and the
Company’s obligations to the Trustee under Section 7.05, (C) the rights of Holders of Securities of any series with respect to the currency or currency units in which they are to receive payments of principal, premium, if any, and,
interest and (D) the rights, powers’ trusts, duties and immunities of the Trustee hereunder, will survive such discharge. The Company will reimburse the trust fund for any loss suffered by it as a result of any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Obligations or Foreign Government Securities, as the case may be, or any principal or interest paid on such obligations, and, subject to the provisions of Section 7.05, will indemnify the
Trustee against any claims made against the Trustee in connection with any such loss. 

  
 3 

 (2)    “Interest Payment Date,” when used with respect to any
Security, means the Stated Maturity of an installment of interest on such Security. 
 (3)    “Special Record
Date” for the payment of any Defaulted Interest on the Registered Security of any series means a date fixed by the Trustee pursuant to Section 3.07. 

(xix)    Each of the undersigned has read and understands the provisions of the Indenture setting forth conditions
relating to the authentication and delivery by the Trustee of the Notes, and in respect of compliance with which this certificate is being delivered, and all definitions in the Indenture relating thereto; 

(xx)    Each of the undersigned has examined the resolutions of the Company adopted as of or prior to the date hereof
relating to the issuance, execution, authentication, delivery and dating of the Notes, and such agreements, certificates of public officials, certificates of officers or other representatives of the Company and such other documents, certificates and
corporate or other records as he or she has deemed necessary or appropriate as a basis for the opinion hereinafter expressed; 

(xxi)    The examinations or investigations described in paragraphs (xix) and (xx) are sufficient to enable each of
the undersigned to express an informed opinion as to whether or not the conditions precedent referred to above have been complied with in accordance with the terms of the Indenture; and 

(xxii)    In the opinion of each of the undersigned, all covenants and/or conditions precedent to the issuance by the
Company and the authentication and delivery by the Trustee of the Notes, as requested in the order, dated as of the date hereof, pursuant to which the Company has requested that the Trustee authenticate and deliver the Notes, have been complied with
in accordance with the terms of the Indenture. 
 Capitalized terms used herein without definition shall have the respective meanings
ascribed to such terms in the Indenture. 
 [The Remainder of This Page Intentionally Left Blank; Signature Page
Follows] 

  
 4 

 IN WITNESS WHEREOF, the undersigned have
hereunto set their hands on the date first set forth above. 
  

					
	ELI LILLY AND COMPANY
		
	By	 	
                     

		 	Name:	 	Philip Johnson
		 	Title:	 	Senior Vice President and Treasurer
		
	By	 	
                     

		 	Name:	 	Crystal Williams
		 	Title:	 	Assistant General Counsel and Assistant Corporate Secretary

 [Signature Page to Officers’ Certificate] 

 Annex A-1 

FORM OF 0.625% NOTE 
  

 ELI LILLY AND COMPANY 

Form of 0.625% Note due 2031 
  

			
	Certificate No. [*]	  	CUSIP No. [*]
	Registered Global Security	  	Common Code No. [*]
		  	ISIN No. [*]

 UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK S.A./N.V., AS OPERATOR
OF THE EUROCLEAR SYSTEM (“EUROCLEAR”), OR CLEARSTREAM BANKING, SOCIÉTÉ ANONYME (“CLEARSTREAM,” AND TOGETHER WITH CLEARSTREAM “EUROCLEAR/CLEARSTREAM”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF [*] OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM AND ANY PAYMENT IS MADE TO [*], ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, [*], HAS AN INTEREST HEREIN. 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE REGISTERED FORM, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT AS
A WHOLE BY EUROCLEAR/CLEARSTREAM TO A NOMINEE OF EUROCLEAR/CLEARSTREAM, OR BY A NOMINEE OF EUROCLEAR/CLEARSTREAM TO EUROCLEAR/CLEARSTREAM OR ANOTHER NOMINEE OF EUROCLEAR/CLEARSTREAM, OR BY EUROCLEAR/CLEARSTREAM OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR TO A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
 ELI LILLY AND
COMPANY, an Indiana corporation (the “Company,” which term includes any successor corporation under the Indenture referred to herein), for value received, hereby promises to pay to [*], or its registered
assigns, the principal amount of [*] euros (€[*]) on November 1, 2031 (the “Stated Maturity Date”), unless redeemed on any Redemption Date (as defined on the reverse hereof) or on any date following
certain tax events as described on the reverse hereof (the Stated Maturity Date or any such date of redemption is referred to herein as the “Maturity Date” with respect to the principal repayable on such date), upon surrender
of this Note at the office or agency of the Company for such payment in The City of New York, and to pay interest on the outstanding principal amount until the Maturity Date at the rate of 0.625% per annum on November 1 of each year, commencing
on [*], 

  
 3 

 
until the date on which payment of said principal amount has been made or duly provided for; provided, however, that if this Note is in the form of a Global Security, then payments of
principal of or premium, if any, or interest on this Note may be made at the Company’s option by wire transfer of immediately available funds to the account specified by the Depositary for this Note; provided further, that if this Note
is not in the form of a Global Security, then payments of principal of and premium, if any, and interest on this Note may be made at the Company’s option by check mailed to the address of the person entitled thereto as such address shall appear
in the records of the Security Registrar. 
 Interest on the Notes will be computed on the basis of the actual number of days in the period
for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the Notes (or from November 7, 2019, if no interest has been paid on the Notes), to but excluding the next
scheduled Interest Payment Date. This payment convention, which is set forth in the rulebook of the International Capital Market Association, is referred to as ACTUAL/ACTUAL (ICMA). The interest payable on any Interest Payment Date shall be payable
to the person in whose name this Note is registered at the close of business on October 15 (whether or not a Business Day) immediately preceding such Interest Payment Date, except as otherwise provided in the Indenture. 

As set forth herein, the Company will pay additional interest on this Note in certain circumstances. 

If the Maturity Date or any Interest Payment Date falls on a day which is not a Business Day, principal, premium, if any, and interest, if
any, payable with respect to the Maturity Date or such Interest Payment Date, as the case may be, will be paid on the next succeeding Business Day with the same force and effect as if made on the Maturity Date or such Interest Payment Date, as the
case may be, and no additional interest shall accrue on the amount so payable for the period from and after the Maturity Date or such Interest Payment Date, as the case may be, to the next succeeding Business Day. As used herein,
“Business Day” means any day, other than a Saturday or Sunday, that is (i) neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in The City of New York
or London, and (ii) on which the Trans-European Automated Real-time Gross Settlement Express Transfer system, or any successor thereto, is open. 

All payments on this Note will be payable in euro; provided, however, that if, on or after [*], the euro is unavailable
to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their
currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of this Note shall be made in Dollars until the euro is again available to the Company or so used.
The amount payable on any date in euro shall be converted into Dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second Business Day prior to the relevant date for the payment of principal, premium, if
any, and interest, if any, on this Note or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the most recent euro/Dollar exchange rate available on or prior to the second Business Day prior to the
relevant date for the payment of principal, premium, if any, and interest, if any, on this Note, as reported by Bloomberg. The 

  
 4 

 
Company shall notify Deutsche Bank Trust Company Americas (as successor to Citibank, N.A.), as trustee (the “Trustee”) in writing if any payment on this Note is to be made
in Dollars. Upon depositing such payment with a Paying Agent, the Company shall deliver an Officers’ Certificate to the Trustee and such Paying Agent certifying that (1) pursuant to the terms of the Indenture and this Note, such payment
may be made in Dollars, (2) the conversion rate, (3) such conversion rate was determined in accordance with the terms of the Indenture and this Note, and (4) the amount of the payment in Dollars. Any payment in respect of this Note so
made in Dollars will not constitute an Event of Default under this Note or the Indenture. Neither the Trustee nor any Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing. 

This Note is issued pursuant to, and shall be governed by, that certain Indenture (the “Indenture”), dated as of
February 1, 1991, between the Company and the Trustee. Capitalized terms used in this Note without definition shall have the respective meanings ascribed to them in the Indenture. 

The provisions of this Note are continued on the reverse hereof, and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee by the manual
signature of one of its authorized officers, this Note shall not be entitled to the benefit under the Indenture or be valid or obligatory for any purpose. 

[This Space Intentionally Left Blank] 

  
 5 

 IN WITNESS WHEREOF, Eli Lilly and Company has
caused this instrument to be duly signed. 
  

			
	ELI LILLY AND COMPANY
		
	By:	 	  

		 	Name:
		 	Title:
		
		 	
                     

		 	Name:
		 	Title:

 [SEAL] 

 This is one of the Securities of the series designated therein issued under the
within-mentioned Indenture. 
 Dated: 
  

			
	 DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Trustee

		
	By:	 	
                     

		 	Authorized Officer
		
	By:	 	
                    

		 	Authorized Officer

 [REVERSE OF NOTE] 

This Note is one of a duly authorized issue of a series of debt securities (the “Securities”) of the Company,
designated as its 0.625% Notes due 2031 (the “Notes”). The Securities, including the Notes, are all issued or to be issued under and pursuant to the Indenture, to which Indenture, and all Board Resolutions and Officers’
Certificates as provided therein, reference is hereby made for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes, and the terms upon which the
Notes are, and are to be, authenticated and delivered. The Notes are initially issued in an aggregate principal amount of six hundred million euros (€600,000,000); provided, however, that the Company may at any time issue
additional Securities under the Indenture in unlimited amounts having the same terms as the Notes other than the date of original issuance and the first Interest Payment Date applicable thereto, and such Securities shall be treated as a single
series with the Notes for all purposes under the Indenture. 
 This Note will constitute part of the Company’s unsecured and
unsubordinated obligations and will rank equally in right of payment with all of the Company’s other existing and future unsecured and unsubordinated indebtedness. This Note will be issuable in fully registered form only, in minimum
denominations of one hundred thousand euros (€100,000) and any integral multiples of one thousand euros (€1,000) in excess of that amount. 

In case an Event of Default shall have occurred and be continuing with respect to this Note, the principal hereof may be declared due and
payable, and upon such declaration shall become due and payable, in the manner, with the effect, and subject to the conditions provided in the Indenture. The Indenture permits the Holders of at least a majority in aggregate principal amount of the
Notes at the time outstanding to, on behalf of the Holders of all of the Notes and in the manner and subject to the provisions of the Indenture, waive certain past defaults and rescind and annul such past declarations and their consequences under
the Indenture. 
 The Indenture contains provisions permitting the Company and the Trustee, with consent of the Holders of not less than a
majority of the aggregate principal amount of the Notes at the time outstanding, evidenced as provided in the Indenture, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of
the provisions of the Indenture or of any supplemental indenture with respect to the Notes or of modifying in any manner the rights of the Holders of the Notes; provided, however, that no such supplemental indenture shall
(i) extend the fixed maturity, or the earlier optional date of maturity, if any, of any Note, or reduce the principal amount thereof or the premium thereon, if any, or reduce the rate or extend the time of payment of interest, if any, thereon
or make the principal thereof or premium, if any, or interest, if any, thereon payable in any currency other than as provided pursuant to the Indenture or this Note, without the consent of the Holders of each Note so affected; or (ii) reduce
the aforesaid percentage of the Notes, the Holders of which are required to consent to any such supplemental indenture, without the consent of the Holders of all Notes then outstanding. 

The Notes shall not be entitled to the benefit of any mandatory redemption or sinking fund provisions. 

 Optional Redemption 

Upon such notice as specified below and in accordance with the Indenture, the Notes are subject to redemption, in whole or in part, at the
election of the Company at any time or from time to time, on a date fixed for redemption (a “Redemption Date”) prior to the Par Call Date and at a “redemption price” equal to the greater of the following amounts:

  

	 	(i)	 100% of the principal amount of the Notes being redeemed on such Redemption Date; and 

 

	 	(ii)	 as calculated by the Quotation Agent (as defined below), the sum of the present values of the remaining
scheduled payments of principal of and interest on the Notes being redeemed that would be due if such Notes matured on the Par Call Date (not including the amount, if any, of unpaid interest accrued to, but excluding, such Redemption Date)
discounted to such Redemption Date on an annual basis (ACTUAL/ACTUAL (ICMA)) at the Reference Dealer Rate (as defined below), plus 0.200% (or 20 basis points); 

plus, in each case, unpaid interest accrued on such Notes to, but excluding, such Redemption Date. If the Company redeems all or any part of the Notes on or
after the Par Call Date, it will pay a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon. 

Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on each Interest Payment Date falling on or
prior to a Redemption Date will be payable on such Interest Payment Date to the Holder(s) as of the close of business on the Regular Record Date immediately preceding such Interest Payment Date. 

The Company shall mail notice of each redemption at least 10 days but not more than 60 days before the Redemption Date to each Holder of Notes
to be redeemed. Subject to any delay in the Redemption Date or rescission of the notice of redemption, once notice of redemption is mailed, the Notes called for redemption will become due and payable on the applicable Redemption Date at the
applicable redemption price. Any redemption notice may, at the Company’s discretion, be subject to one or more conditions precedent, including completion of a corporate transaction. In such event, the related notice of redemption will describe
each such condition and, if applicable, will state that, at the Company’s discretion, the date of redemption may be delayed until such time (including more than 60 days after the notice of redemption was given) as any or all such conditions are
satisfied or waived, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions have not been satisfied (or waived by the Company in its sole discretion) by the date of redemption, or by the date
of redemption as so delayed. In the case of such delay or rescission, the Company shall provide written notice to the Trustee prior to the close of business two Business Days before the Redemption Date and, upon receipt, the Trustee shall provide
notice to each Holder of Notes to be redeemed, 
 “Par Call Date” means August 1, 2031. 

  
 9 

 “Quotation Agent” means the Reference Dealer selected by the
Company. 
 “Reference Dealer” means any Euro Security Dealer(s) selected by the Company. 

“Reference Dealer Rate” means, with respect to each Reference Dealer and any Redemption Date prior to the Par Call
Date, the arithmetic average of the quotations quoted in writing to the Company by each Reference Dealer of the average midmarket annual yield to maturity of the 0.000% German Bundesobligationen due August 15, 2029 or, if such security is no
longer outstanding, a similar security in the reasonable judgment of such Reference Dealer at 11:00 a.m. (London time) on the third Business Day preceding such Redemption Date. 

On and after any Redemption Date, interest will cease to accrue on the Notes or any portion of the Notes called for redemption (unless the
Company defaults in the payment of the redemption price therefor). Before any Redemption Date, the Company will deposit with a Paying Agent (or the Trustee) money sufficient to pay the redemption price of the Notes to be redeemed on such date. If
fewer than all of the Notes are to be redeemed, then the Notes to be redeemed shall be selected by lot by the Trustee by a method the Trustee deems to be fair and appropriate. 

Redemption Upon a Tax Event 
 If
(i) the Company becomes or will become obligated to pay Additional Amounts (as defined below) as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States (or any political
subdivision or taxing authority thereof or therein), or any change in, or amendment to, any official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes
effective on or after November 7, 2019, or (ii) a taxing authority of the United States takes an action on or after November 7, 2019, whether or not with respect to the Company or any of its affiliates, that results in a substantial probability
that the Company will or may be required to pay such Additional Amounts, in either case, with respect to the Notes for reasons outside the Company’s control and after taking reasonable measures available to the Company to avoid such obligation,
then the Company may, at its option, redeem, in whole, but not in part, the Notes at any time prior to maturity on not less than 30 nor more than 60 days’ prior notice to the Holders, at a redemption price equal to 100% of their principal
amount, together with unpaid interest accrued thereon to the date fixed for redemption. No redemption pursuant to (ii) above may be made unless the Company shall have received an opinion of independent counsel to the effect that an act taken by
a taxing authority of the United States results in a substantial probability that it will or may be required to pay the Additional Amounts and the Company shall have delivered to the Trustee a certificate, signed by a duly authorized officer,
stating that based on such opinion, the Company is entitled to redeem the Notes pursuant to their terms. 
 Payment of Additional Amounts 

The Company shall, subject to the exceptions and limitations set forth below, pay as additional interest on the Notes such additional amounts
(“Additional Amounts”) as are necessary so that the net payment by the Company or a Paying Agent of the principal of and interest on the Notes to a person that is a Non-U.S. Holder (as
defined below), after deduction for 

  
 10 

 
any present or future tax, assessment or governmental charge of the United States or a political subdivision or taxing authority thereof or therein, imposed by withholding with respect to the
payment, will not be less than the amount that would have been payable in respect of the Notes had no withholding or deduction been required. 

The Company’s obligation to pay Additional Amounts shall not apply: 

(i)    to any tax, assessment or governmental charge that is imposed or withheld solely because the beneficial owner, or a
fiduciary, settlor, beneficiary or member of the beneficial owner if the beneficial owner is an estate, trust or partnership, or a person holding a power over an estate or trust administered by a fiduciary holder: 

(1)    is or was present or engaged in a trade or business in the United States or has or had a permanent establishment
in the United States; 
 (2)    is or was a citizen or resident or is or was treated as a resident of the United
States; 
 (3)    is or was a foreign or domestic personal holding company, a passive foreign investment company or a
controlled foreign corporation for the United States federal income tax purposes, is or was a corporation that has accumulated earnings to avoid United States federal income tax or is or was a private foundation or other tax-exempt organization; 
 (4)    is or was an actual or constructive “10-percent shareholder” of ours, as defined in Section 871(h)(3) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”); 

(5)    is or was a bank receiving interest described in Section 881(c)(3)(A) of the Code; 

(ii)    to any Holder that is not the sole beneficial owner of Notes, or that is a fiduciary or partnership, but only to
the extent that the beneficial owner, a beneficiary or settlor with respect to the fiduciary, or a member of the partnership would not have been entitled to the payment of an Additional Amount had such beneficial owner, beneficiary, settlor or
member received directly its beneficial or distributive share of the payment; 
 (iii)    to any tax, assessment or
governmental charge that is imposed or withheld solely because the beneficial owner or any other person failed to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity or
connection with the United States of the Holder or beneficial owner of Notes, if compliance is required by statute, by regulation of the United States Treasury Department or by an applicable income tax treaty to which the United States is a party as
a precondition to exemption from such tax, assessment or other governmental charge; 
 (iv)    to any tax, assessment or
governmental charge that is imposed other than by deduction or withholding by the Company or a Paying Agent from the payment; 

(v)    to any tax, assessment or governmental charge that is imposed or withheld solely because of a change in law,
regulation, or administrative or judicial interpretation that becomes effective after the day on which the payment becomes due or is duly provided for, whichever occurs later; 

(vi)    to any estate, inheritance, gift, sales, excise, transfer, wealth or personal property tax or any similar tax,
assessment or governmental charge; 

  
 11 

 (vii)    to any tax, assessment or other governmental charge any Paying
Agent (which term may include the Company) must withhold from any payment of principal of or interest on any Note, if such payment can be made without such withholding by any other Paying Agent; 

(viii)    to any tax, assessment or governmental charge that would not have been so imposed or withheld but for the
presentation by the Holder of a Note for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later; 

(ix)    to any withholding or deduction pursuant to an agreement described in Section 1471(b) of the Code, or
otherwise imposed pursuant to Sections 1471 through 1474 of the Code (or any regulations or agreements thereunder or official interpretations thereof) or any intergovernmental agreement between the United States and another jurisdiction for
cooperation to facilitate the implementation thereof (or any law implementing such an intergovernmental agreement); or 

(x)    in the case of any combination of the above items. 

“Non-U.S. Holder” means (i) an individual that is a non-resident alien, (ii) a corporation organized or created under non-U.S. law, or (iii) an estate or trust that is not taxable in the United States on its worldwide
income. 
 Except as specifically provided herein, the Company shall not be required to make any payment with respect to any tax, assessment
or governmental charge imposed by any government or a political subdivision or taxing authority. In particular, the Company shall not be not obligated to pay Additional Amounts on any Note presented for payment by or on behalf of a beneficial owner
who would have been able to avoid the withholding or deduction by presenting such Note to another Paying Agent in a member state of the European Union. 

Miscellaneous 
 The Notes are
subject to the defeasance provisions set forth in Section 12.02 of the Indenture. 
 Except as expressly provided herein, the Company
shall not pay any additional amounts on any of the Notes to any person, including any Holder who is not a United States Person in respect of any tax, assessment or governmental charge withheld or deducted. 

No reference herein to the Indenture and no provision of this Note or of the Indenture or of any Board Resolution shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Note at the times and places and at the rate and in the coin and currency herein prescribed. 

This Note is transferable by the Holder hereof in person or by his attorney duly authorized in writing on the books of the Company at the
office or agency to be maintained by the Company for that purpose in The City of New York, but only in the manner, subject to the limitations and upon payment of any tax or governmental charge for which the Company may require reimbursement as
provided in the Indenture, and upon surrender and cancellation of this 

  
 12 

 
Note. Upon any registration of transfer, a new registered Note or Notes, of authorized denomination or authorized denominations and like tenor and terms, and in the same aggregate principal
amount, will be issued to the transferee in exchange therefor. 
 The Company, the Trustee, any Paying Agent and any Security Registrar may
deem and treat the Holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notations of ownership or other writing hereon made by anyone other than the Security Registrar) for the purpose
of receiving payment of or on account of the principal hereof and premium, if any, and interest due hereon as herein provided and for all other purposes, and none of the Company, the Trustee, any Paying Agent or any Security Registrar shall be
affected by any notice to the contrary. 
 No recourse shall be had for the payment of the principal of or premium, if any, or interest on
this Note, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto or any Board Resolution, against any Person other than the Company or against any
incorporator, stockholder, officer or director, past, present or future, as such, of the Company or any other Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by the acceptance hereof and as part of the consideration for the issuance of this Note, expressly waived and released. 

This Note shall be governed by and construed in accordance with the laws of the State of New York. 

  
 13 

 Annex A-2 

FORM OF 1.700% NOTE 

  
 14 

 ELI LILLY AND COMPANY 

Form of 1.700% Note due 2049 
  

			
	 Certificate No. [*x]
	  	CUSIP No. [*]
	Registered Global Security	  	Common Code No. [*]
		  	ISIN No. [*]

 UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK S.A./N.V., AS OPERATOR
OF THE EUROCLEAR SYSTEM (“EUROCLEAR”), OR CLEARSTREAM BANKING, SOCIÉTÉ ANONYME (“CLEARSTREAM,” AND TOGETHER WITH CLEARSTREAM “EUROCLEAR/CLEARSTREAM”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF [*] OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM AND ANY PAYMENT IS MADE TO [*], ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, [*], HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL IT
IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE REGISTERED FORM, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY EUROCLEAR/CLEARSTREAM TO A NOMINEE OF EUROCLEAR/CLEARSTREAM, OR BY A NOMINEE OF EUROCLEAR/CLEARSTREAM TO
EUROCLEAR/CLEARSTREAM OR ANOTHER NOMINEE OF EUROCLEAR/CLEARSTREAM, OR BY EUROCLEAR/CLEARSTREAM OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR TO A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

ELI LILLY AND COMPANY, an Indiana corporation (the
“Company,” which term includes any successor corporation under the Indenture referred to herein), for value received, hereby promises to pay to [*], or its registered assigns, the principal amount of [*] euros (€[*]) on
November 1, 2049 (the “Stated Maturity Date”), unless redeemed on any Redemption Date (as defined on the reverse hereof) or on any date following certain tax events as described on the reverse hereof (the Stated Maturity
Date or any such date of redemption is referred to herein as the “Maturity Date” with respect to the principal repayable on such date), upon surrender of this Note at the office or agency of the Company for such payment in
The City of New York, and to pay interest on the outstanding principal amount until the Maturity Date at the rate of 1.700% per annum on November 1 of each year, commencing on [*], until the date on which payment of said

  
 15 

 
principal amount has been made or duly provided for; provided, however, that if this Note is in the form of a Global Security, then payments of principal of or premium, if any, or interest
on this Note may be made at the Company’s option by wire transfer of immediately available funds to the account specified by the Depositary for this Note; provided further, that if this Note is not in the form of a Global Security, then
payments of principal of and premium, if any, and interest on this Note may be made at the Company’s option by check mailed to the address of the person entitled thereto as such address shall appear in the records of the Security Registrar.

 Interest on the Notes will be computed on the basis of the actual number of days in the period for which interest is being calculated and
the actual number of days from and including the last date on which interest was paid on the Notes (or from [*], if no interest has been paid on the Notes), to but excluding the next scheduled Interest Payment Date. This payment convention, which is
set forth in the rulebook of the International Capital Market Association, is referred to as ACTUAL/ACTUAL (ICMA). The interest payable on any Interest Payment Date shall be payable to the person in whose name this Note is registered at the close of
business on October 15 (whether or not a Business Day) immediately preceding such Interest Payment Date, except as otherwise provided in the Indenture. 

As set forth herein, the Company will pay additional interest on this Note in certain circumstances. 

If the Maturity Date or any Interest Payment Date falls on a day which is not a Business Day, principal, premium, if any, and interest, if
any, payable with respect to the Maturity Date or such Interest Payment Date, as the case may be, will be paid on the next succeeding Business Day with the same force and effect as if made on the Maturity Date or such Interest Payment Date, as the
case may be, and no additional interest shall accrue on the amount so payable for the period from and after the Maturity Date or such Interest Payment Date, as the case may be, to the next succeeding Business Day. As used herein,
“Business Day” means any day, other than a Saturday or Sunday, that is (i) neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in The City of New York
or London, and (ii) on which the Trans-European Automated Real-time Gross Settlement Express Transfer system, or any successor thereto, is open. 

All payments on this Note will be payable in euro; provided, however, that if, on or after [*], the euro is unavailable to the
Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency
or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of this Note shall be made in Dollars until the euro is again available to the Company or so used. The amount
payable on any date in euro shall be converted into Dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second Business Day prior to the relevant date for the payment of principal, premium, if any, and
interest, if any, on this Note or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the most recent euro/Dollar exchange rate available on or prior to the second Business Day prior to the relevant
date for the payment of principal, premium, if any, and interest, if any, on this Note, as reported by Bloomberg. The Company shall notify Deutsche Bank Trust Company Americas (as successor to Citibank, N.A.),

  
 16 

 
as trustee (the “Trustee”) in writing if any payment on this Note is to be made in Dollars. Upon depositing such payment with a Paying Agent, the Company shall deliver an
Officers’ Certificate to the Trustee and such Paying Agent certifying that (1) pursuant to the terms of the Indenture and this Note, such payment may be made in Dollars, (2) the conversion rate, (3) such conversion rate was
determined in accordance with the terms of the Indenture and this Note, and (4) the amount of the payment in Dollars. Any payment in respect of this Note so made in Dollars will not constitute an Event of Default under this Note or the
Indenture. Neither the Trustee nor any Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing. 

This Note is issued pursuant to, and shall be governed by, that certain Indenture (the “Indenture”), dated as of
February 1, 1991, between the Company and the Trustee. Capitalized terms used in this Note without definition shall have the respective meanings ascribed to them in the Indenture. 

The provisions of this Note are continued on the reverse hereof, and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee by the manual
signature of one of its authorized officers, this Note shall not be entitled to the benefit under the Indenture or be valid or obligatory for any purpose. 

[This Space Intentionally Left Blank] 

  
 17 

 IN WITNESS WHEREOF, Eli Lilly and Company has
caused this instrument to be duly signed. 
  

			
	ELI LILLY AND COMPANY
		
	By:	 	 

                     

		 	Name:
		 	Title:
		
		 	
                     

		 	Name:
		 	Title:

 [SEAL] 

 This is one of the Securities of the series designated therein issued under the
within-mentioned Indenture. 
 Dated: 
  

			
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee
		
	By:	 	
                     

		 	Authorized Officer
		
	By:	 	
                     

		 	Authorized Officer

 [REVERSE OF NOTE] 

This Note is one of a duly authorized issue of a series of debt securities (the “Securities”) of the Company,
designated as its 1.700% Notes due 2049 (the “Notes”). The Securities, including the Notes, are all issued or to be issued under and pursuant to the Indenture, to which Indenture, and all Board Resolutions and Officers’
Certificates as provided therein, reference is hereby made for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes, and the terms upon which the
Notes are, and are to be, authenticated and delivered. The Notes are initially issued in an aggregate principal amount of one billion euros (€1,000,000,000); provided, however, that the Company may at any time issue additional
Securities under the Indenture in unlimited amounts having the same terms as the Notes other than the date of original issuance and the first Interest Payment Date applicable thereto, and such Securities shall be treated as a single series with the
Notes for all purposes under the Indenture. 
 This Note will constitute part of the Company’s unsecured and unsubordinated obligations
and will rank equally in right of payment with all of the Company’s other existing and future unsecured and unsubordinated indebtedness. This Note will be issuable in fully registered form only, in minimum denominations of one hundred thousand
euros (€100,000) and any integral multiples of one thousand euros (€1,000) in excess of that amount. 
 In case an Event of
Default shall have occurred and be continuing with respect to this Note, the principal hereof may be declared due and payable, and upon such declaration shall become due and payable, in the manner, with the effect, and subject to the conditions
provided in the Indenture. The Indenture permits the Holders of at least a majority in aggregate principal amount of the Notes at the time outstanding to, on behalf of the Holders of all of the Notes and in the manner and subject to the provisions
of the Indenture, waive certain past defaults and rescind and annul such past declarations and their consequences under the Indenture. 

The Indenture contains provisions permitting the Company and the Trustee, with consent of the Holders of not less than a majority of the
aggregate principal amount of the Notes at the time outstanding, evidenced as provided in the Indenture, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any supplemental indenture with respect to the Notes or of modifying in any manner the rights of the Holders of the Notes; provided, however, that no such supplemental indenture shall (i) extend the fixed
maturity, or the earlier optional date of maturity, if any, of any Note, or reduce the principal amount thereof or the premium thereon, if any, or reduce the rate or extend the time of payment of interest, if any, thereon or make the principal
thereof or premium, if any, or interest, if any, thereon payable in any currency other than as provided pursuant to the Indenture or this Note, without the consent of the Holders of each Note so affected; or (ii) reduce the aforesaid percentage
of the Notes, the Holders of which are required to consent to any such supplemental indenture, without the consent of the Holders of all Notes then outstanding. 

The Notes shall not be entitled to the benefit of any mandatory redemption or sinking fund provisions. 

 Optional Redemption 

Upon such notice as specified below and in accordance with the Indenture, the Notes are subject to redemption, in whole or in part, at the
election of the Company at any time or from time to time, on a date fixed for redemption (a “Redemption Date”) prior to the Par Call Date and at a “redemption price” equal to the greater of the following amounts:

  

	 	(i)	 100% of the principal amount of the Notes being redeemed on such Redemption Date; and 

 

	 	(ii)	 as calculated by the Quotation Agent (as defined below), the sum of the present values of the remaining
scheduled payments of principal of and interest on the Notes being redeemed that would be due if such Notes matured on the Par Call Date (not including the amount, if any, of unpaid interest accrued to, but excluding, such Redemption Date)
discounted to such Redemption Date on an annual basis (ACTUAL/ACTUAL (ICMA)) at the Reference Dealer Rate (as defined below), plus 0.250% (or 25 basis points); 

plus, in each case, unpaid interest accrued on such Notes to, but excluding, such Redemption Date. If the Company redeems all or any part of the Notes on or
after the Par Call Date, it will pay a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon. 

Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on each Interest Payment Date falling on or
prior to a Redemption Date will be payable on such Interest Payment Date to the Holder(s) as of the close of business on the Regular Record Date immediately preceding such Interest Payment Date. 

The Company shall mail notice of each redemption at least 10 days but not more than 60 days before the Redemption Date to each Holder of Notes
to be redeemed. Subject to any delay in the Redemption Date or rescission of the notice of redemption, once notice of redemption is mailed, the Notes called for redemption will become due and payable on the applicable Redemption Date at the
applicable redemption price. Any redemption notice may, at the Company’s discretion, be subject to one or more conditions precedent, including completion of a corporate transaction. In such event, the related notice of redemption will describe
each such condition and, if applicable, will state that, at the Company’s discretion, the date of redemption may be delayed until such time (including more than 60 days after the notice of redemption was given) as any or all such conditions are
satisfied or waived, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions have not been satisfied (or waived by the Company in its sole discretion) by the date of redemption, or by the date
of redemption as so delayed. In the case of such delay or rescission, the Company shall provide written notice to the Trustee prior to the close of business two Business Days before the Redemption Date and, upon receipt, the Trustee shall provide
notice to each Holder of Notes to be redeemed, 
 “Par Call Date” means May 1, 2049. 

 “Quotation Agent” means the Reference Dealer selected by the
Company. 
 “Reference Dealer” means any Euro Security Dealer(s) selected by the Company. 

“Reference Dealer Rate” means, with respect to each Reference Dealer and any Redemption Date prior to the Par Call
Date, the arithmetic average of the quotations quoted in writing to the Company by each Reference Dealer of the average midmarket annual yield to maturity of the 1.250% German Bundesobligationen due August 15, 2048 or, if such security is no
longer outstanding, a similar security in the reasonable judgment of such Reference Dealer at 11:00 a.m. (London time) on the third Business Day preceding such Redemption Date. 

On and after any Redemption Date, interest will cease to accrue on the Notes or any portion of the Notes called for redemption (unless the
Company defaults in the payment of the redemption price therefor). Before any Redemption Date, the Company will deposit with a Paying Agent (or the Trustee) money sufficient to pay the redemption price of the Notes to be redeemed on such date. If
fewer than all of the Notes are to be redeemed, then the Notes to be redeemed shall be selected by lot by the Trustee by a method the Trustee deems to be fair and appropriate. 

Redemption Upon a Tax Event 
 If
(i) the Company becomes or will become obligated to pay Additional Amounts (as defined below) as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States (or any political
subdivision or taxing authority thereof or therein), or any change in, or amendment to, any official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes
effective on or after November 7, 2019, or (ii) a taxing authority of the United States takes an action on or after November 7, 2019, whether or not with respect to the Company or any of its affiliates, that results in a substantial probability
that the Company will or may be required to pay such Additional Amounts, in either case, with respect to the Notes for reasons outside the Company’s control and after taking reasonable measures available to the Company to avoid such obligation,
then the Company may, at its option, redeem, in whole, but not in part, the Notes at any time prior to maturity on not less than 30 nor more than 60 days’ prior notice to the Holders, at a redemption price equal to 100% of their principal
amount, together with unpaid interest accrued thereon to the date fixed for redemption. No redemption pursuant to (ii) above may be made unless the Company shall have received an opinion of independent counsel to the effect that an act taken by
a taxing authority of the United States results in a substantial probability that it will or may be required to pay the Additional Amounts and the Company shall have delivered to the Trustee a certificate, signed by a duly authorized officer,
stating that based on such opinion, the Company is entitled to redeem the Notes pursuant to their terms. 
 Payment of Additional Amounts 

The Company shall, subject to the exceptions and limitations set forth below, pay as additional interest on the Notes such additional amounts
(“Additional Amounts”) as are necessary so that the net payment by the Company or a Paying Agent of the principal of and interest on the Notes to a person that is a Non-U.S. Holder (as
defined below), after deduction for 

 
any present or future tax, assessment or governmental charge of the United States or a political subdivision or taxing authority thereof or therein, imposed by withholding with respect to the
payment, will not be less than the amount that would have been payable in respect of the Notes had no withholding or deduction been required. 

The Company’s obligation to pay Additional Amounts shall not apply: 

(i)    to any tax, assessment or governmental charge that is imposed or withheld solely because the beneficial owner, or a
fiduciary, settlor, beneficiary or member of the beneficial owner if the beneficial owner is an estate, trust or partnership, or a person holding a power over an estate or trust administered by a fiduciary holder: 

(1)    is or was present or engaged in a trade or business in the United States or has or had a permanent establishment
in the United States; 
 (2)    is or was a citizen or resident or is or was treated as a resident of the United
States; 
 (3)    is or was a foreign or domestic personal holding company, a passive foreign investment company or a
controlled foreign corporation for the United States federal income tax purposes, is or was a corporation that has accumulated earnings to avoid United States federal income tax or is or was a private foundation or other tax-exempt organization; 
 (4)    is or was an actual or constructive “10-percent shareholder” of ours, as defined in Section 871(h)(3) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”); 

(5)    is or was a bank receiving interest described in Section 881(c)(3)(A) of the Code; 

(ii)    to any Holder that is not the sole beneficial owner of Notes, or that is a fiduciary or partnership, but only to
the extent that the beneficial owner, a beneficiary or settlor with respect to the fiduciary, or a member of the partnership would not have been entitled to the payment of an Additional Amount had such beneficial owner, beneficiary, settlor or
member received directly its beneficial or distributive share of the payment; 
 (iii)    to any tax, assessment or
governmental charge that is imposed or withheld solely because the beneficial owner or any other person failed to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity or
connection with the United States of the Holder or beneficial owner of Notes, if compliance is required by statute, by regulation of the United States Treasury Department or by an applicable income tax treaty to which the United States is a party as
a precondition to exemption from such tax, assessment or other governmental charge; 
 (iv)    to any tax, assessment or
governmental charge that is imposed other than by deduction or withholding by the Company or a Paying Agent from the payment; 

(v)    to any tax, assessment or governmental charge that is imposed or withheld solely because of a change in law,
regulation, or administrative or judicial interpretation that becomes effective after the day on which the payment becomes due or is duly provided for, whichever occurs later; 

(vi)    to any estate, inheritance, gift, sales, excise, transfer, wealth or personal property tax or any similar tax,
assessment or governmental charge; 

 (vii)    to any tax, assessment or other governmental charge any Paying
Agent (which term may include the Company) must withhold from any payment of principal of or interest on any Note, if such payment can be made without such withholding by any other Paying Agent; 

(viii)    to any tax, assessment or governmental charge that would not have been so imposed or withheld but for the
presentation by the Holder of a Note for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later; 

(ix)    to any withholding or deduction pursuant to an agreement described in Section 1471(b) of the Code, or
otherwise imposed pursuant to Sections 1471 through 1474 of the Code (or any regulations or agreements thereunder or official interpretations thereof) or any intergovernmental agreement between the United States and another jurisdiction for
cooperation to facilitate the implementation thereof (or any law implementing such an intergovernmental agreement); or 

(x)    in the case of any combination of the above items. 

“Non-U.S. Holder” means (i) an individual that is a non-resident alien, (ii) a corporation organized or created under non-U.S. law, or (iii) an estate or trust that is not taxable in the United States on its worldwide
income. 
 Except as specifically provided herein, the Company shall not be required to make any payment with respect to any tax, assessment
or governmental charge imposed by any government or a political subdivision or taxing authority. In particular, the Company shall not be not obligated to pay Additional Amounts on any Note presented for payment by or on behalf of a beneficial owner
who would have been able to avoid the withholding or deduction by presenting such Note to another Paying Agent in a member state of the European Union. 

Miscellaneous 
 The Notes are
subject to the defeasance provisions set forth in Section 12.02 of the Indenture. 
 Except as expressly provided herein, the Company
shall not pay any additional amounts on any of the Notes to any person, including any Holder who is not a United States Person in respect of any tax, assessment or governmental charge withheld or deducted. 

No reference herein to the Indenture and no provision of this Note or of the Indenture or of any Board Resolution shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Note at the times and places and at the rate and in the coin and currency herein prescribed. 

This Note is transferable by the Holder hereof in person or by his attorney duly authorized in writing on the books of the Company at the
office or agency to be maintained by the Company for that purpose in The City of New York, but only in the manner, subject to the limitations and upon payment of any tax or governmental charge for which the Company may require reimbursement as
provided in the Indenture, and upon surrender and cancellation of this 

 
Note. Upon any registration of transfer, a new registered Note or Notes, of authorized denomination or authorized denominations and like tenor and terms, and in the same aggregate principal
amount, will be issued to the transferee in exchange therefor. 
 The Company, the Trustee, any Paying Agent and any Security Registrar may
deem and treat the Holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notations of ownership or other writing hereon made by anyone other than the Security Registrar) for the purpose
of receiving payment of or on account of the principal hereof and premium, if any, and interest due hereon as herein provided and for all other purposes, and none of the Company, the Trustee, any Paying Agent or any Security Registrar shall be
affected by any notice to the contrary. 
 No recourse shall be had for the payment of the principal of or premium, if any, or interest on
this Note, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto or any Board Resolution, against any Person other than the Company or against any
incorporator, stockholder, officer or director, past, present or future, as such, of the Company or any other Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by the acceptance hereof and as part of the consideration for the issuance of this Note, expressly waived and released. 

This Note shall be governed by and construed in accordance with the laws of the State of New York.

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