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EXHIBIT 4.2

EXECUTION VERSION

OFFICERS’ CERTIFICATE

OF

GENENTECH, INC.

Dated as of July 18, 2005

     The undersigned officers of the Company certify, pursuant to resolutions duly adopted by the
Board of Directors of the Company at a meeting duly held on June 10, 2005 (the “Resolutions”), and
in accordance with Sections 2.1, 2.2 and 2.3 of the Indenture, dated as of July 18, 2005 (the
“Indenture,” capitalized terms used herein and not otherwise defined shall have the meanings given
to them in the Indenture), between Genentech, Inc., a Delaware corporation (the “Company”), and The
Bank of New York Trust Company, N.A., as trustee (the “Trustee”), the following matters related to
the issuance of the Company’s 4.40% Senior Notes due 2010 (the “2010 Notes”), the Company’s 4.75%
Senior Notes due 2015 (the “2015 Notes” and the Company’s 5.25% Senior Notes due 2035 (the “2035
Notes”):

     1. (i) Attached hereto as Annex A is a true and correct copy of a specimen note (the
“Form of 2010 Note”) representing the 2010 Notes, (ii) attached hereto as Annex B is a true
and correct copy of a specimen note (the “Form of 2015 Note”) representing the 2015 Notes, and
(iii) attached hereto as Annex C is a true and correct copy of a specimen note (the “Form
of 2035 Note”) representing the 2035 Notes. The Form of 2010 Note, the Form of 2015 Note and the
Form of 2035 Note are herein collectively referred to as the “Forms of Notes.” The Forms of Notes
set forth certain of the terms required to be set forth in this Certificate pursuant to Section 2.2
of the Indenture, and said terms are incorporated herein by reference. The 2010 Notes, the 2015
Notes and the 2035 Notes are each a separate series of Securities under the Indenture and are
referred to herein collectively as the “Notes.” The term “Notes” shall also include any exchange
notes issued in exchange for the 2010 Notes, the 2015 Notes and the 2035 Notes, respectively,
pursuant to the transactions contemplated by that certain Registration Rights Agreement, dated as
of July 18, 2005 (the “Registration Rights Agreement”), by and among the Company and the initial
purchasers named therein (the “Exchange Securities”).

     2. The title of the 2010 Notes shall be the “4.40% Senior Notes due 2010,” the title of the
2015 Notes shall be the “4.75% Senior Notes due 2015,” and the title of the 2035 Notes shall be the
“5.25% Senior Notes due 2035.”

     3. The 2010 Notes shall be issued at the initial offering price of 99.992% of the principal
amount, the 2015 Notes shall be issued at the initial offering price of 99.937% of the principal
amount, and the 2035 Notes shall be issued at the initial offering price of 99.850% of the
principal amount.

     4. The Company will initially issue (i) $500,000,000 aggregate principal amount of 2010 Notes
(except for 2010 Notes authenticated and delivered upon registration of transfer of, in exchange
for, or in lieu of, other 2010 Notes pursuant to Sections 2.7, 2.8, 2.11, 3.6 or 9.6 of the
Indenture), (ii) $1,000,000,000 aggregate principal amount of 2015 Notes (except for 2015 Notes
authenticated and delivered upon registration of transfer of, in exchange for, or in lieu of, other
2015 Notes pursuant to Sections 2.7, 2.8, 2.11, 3.6 or 9.6 of the Indenture), and (iii)
$500,000,000 aggregate principal amount of 2035 Notes (except for 2035 Notes authenticated and
delivered upon registration of transfer of, in exchange for, or in lieu of, other 2035 Notes
pursuant to Sections 2.7, 2.8, 2.11, 3.6 or 9.6 of the Indenture). The Company may issue

 

 

additional 2010 Notes, 2015 Notes and/or 2035 Notes from time to time after the date hereof,
and such Notes will be treated as part of the respective series of Notes for all purposes under the
Indenture.

     5. The Notes and the Exchange Securities shall be issued as Global Securities only and will be
exchangeable for certificated notes (“Certificated Notes”) only if:

          (a) DTC (x) notifies the Company that it is unwilling or unable to continue as depository for
the Global Securities or (y) at any time has ceased to be a clearing agency registered under the
Exchange Act and, in either case, the Company fails to appoint a successor depository registered as
a clearing agency under the Exchange Act within 90 days of such event;

          (b) the Company, at its option, notifies the Trustee in writing to the effect that the Company
elects to cause the issuance of the Certificated Notes; or

          (c) there has occurred and is continuing an Event of Default with respect to the Notes or
event which, with notice or lapse of time or both would constitute an Event of Default.

     Certificated Notes delivered in exchange for any Global Security or beneficial interests in
Global Securities will be registered in the names, and issued in any approved denominations,
requested by or on behalf of the depository (in accordance with its customary procedures).

     6. The Global Securities and the Certificated Notes will bear the following restrictive legend
unless the legend is not required by applicable law, or as set forth in Item 7 below:

          “THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED, PLEDGED OR SOLD WITHIN
THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS
DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT)
(AN “INSTITUTIONAL ACCREDITED INVESTOR”) OR (C) IT IS NOT A U.S. PERSON AND IS
ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) AGREES
THAT IT WILL NOT, WITHIN THE TIME PERIOD REFERRED TO IN RULE 144(k) UNDER THE
SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS NOTE, REOFFER,
PLEDGE, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY OR ANY
SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE
144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL
ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED
LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE
RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM
THE TRUSTEE) AND IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
NOTES OF LESS THAN $100,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER THAT
SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT,

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(D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
REGULATION S UNDER THE SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (F)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN
EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES. PRIOR TO ANY TRANSFER, THE HOLDER OF THIS SECURITY AGREES THAT IT
WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND. IF THE PROPOSED TRANSFEREE IS AN INSTITUTIONAL
ACCREDITED INVESTOR OR A NON-U.S. PERSON, THE HOLDER MUST, PRIOR TO SUCH TRANSFER,
FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER
IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATIONS REQUIREMENTS OF THE SECURITIES ACT. IN ADDITION, IN CONNECTION WITH
ANY TRANSFER OF THIS NOTE WITHIN THE TIME PERIOD REFERRED TO IN RULE 144(K) UNDER
THE SECURITIES ACT AFTER THE ORIGINAL ISSUANCE OF THE NOTES, THE HOLDER MUST CHECK
THE APPROPRIATE BOX SET FORTH ON THE CERTIFICATE OF TRANSFER IN THE FORM APPEARING
ON THE OTHER SIDE OF THIS SECURITY RELATING TO THE MANNER OF SUCH TRANSFER AND
SUBMIT THE CERTIFICATE OF TRANSFER TO THE TRUSTEE. AS USED HEREIN, THE TERMS
“OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO
THEM BY REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION
REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION
OF THE FOREGOING RESTRICTION.”

     7. In accordance with the terms of the Exchange Offer (as defined in the Registration Rights
Agreement), the Company will issue, and upon receipt of a written order in accordance with Section
2.3 of the Indenture, the Trustee will authenticate:

          (a) One or more Global Securities in an aggregate principal amount equal to the principal
amount of the beneficial interests in the Global Securities tendered into the Exchange Offer
pursuant to the terms of the Registration Rights Agreement; and

          (b) Certificated Notes in an aggregate principal amount equal to the principal amount of the
Certificated Notes tendered into and accepted in the Exchange Offer pursuant to the terms of the
Registration Rights Agreement.

     Such Global Securities and Certificated Notes shall not contain the restrictive legend set
forth in Item 6 above. Concurrently with the issuance of such Exchange Securities, the Company
will instruct the Trustee to cause the aggregate principal amount of the applicable Global
Securities and Certificated Notes to be reduced accordingly.

     8. The Notes shall be denominated in Dollars and payments of principal and interest shall be
made in Dollars.

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     9. In addition to the covenants set forth in Article IV of the Indenture, the following
additional covenants shall apply to the 2010 Notes, the 2015 Notes and the 2035 Notes and shall be
incorporated into the Indenture with respect to the 2010 Notes, the 2015 Notes and the 2035 Notes,
such additional covenants to be subject to covenant defeasance pursuant to Section 8.4 of the
Indenture:

     Section 4.5 LIMITATION ON LIENS.

          (a) The Company shall not, nor shall it permit any of its Subsidiaries to, create or incur any
Lien on any of their respective Properties, whether now owned or hereafter acquired, or upon any
income or profits therefrom, in order to secure any Indebtedness of the Company, without
effectively providing that such series of Notes shall be equally and ratably secured until such
time as such Indebtedness is no longer secured by such Lien, except:

               (1) Liens existing as of July 18, 2005 (the “Closing Date”);

               (2) Liens granted after the Closing Date on any of the Company or any of its Subsidiaries’
Properties securing Indebtedness of the Company created in favor of the Holders of such series of
Notes;

               (3) Liens securing Indebtedness of the Company which are incurred to extend, renew or
refinance Indebtedness which is secured by Liens permitted to be incurred under the Indenture;
provided that those Liens do not extend to or cover any of the Company or any of its Subsidiaries’
Property other than the Property securing the Indebtedness being refinanced and that the principal
amount of such Indebtedness does not exceed the principal amount of the Indebtedness being
refinanced;

               (4) Liens created in substitution of or as replacements for any Liens permitted by the
preceding clauses (1) through (3) directly above, provided that, based on a good faith
determination of a Senior Officer of the Company, the Property encumbered under any such substitute
or replacement Lien is substantially similar in nature to the Property encumbered by the otherwise
permitted Lien which is being replaced; and

               (5) Permitted Liens.

          (b) Notwithstanding the foregoing, the Company and any of its Subsidiaries may, without
securing any series of Notes, create or incur Liens which would otherwise be subject to the
restrictions set forth in the preceding paragraph, if after giving effect thereto, Exempted Debt
does not exceed the greater of (x) 35% of Consolidated Net Worth calculated as of the date of the
creation or incurrence of the Lien or (y) 35% of Consolidated Net Worth calculated as of the
Closing Date.

     Section 4.6 LIMITATION ON SALE AND LEASE-BACK TRANSACTIONS.

          (a) The Company shall not and shall not permit its Subsidiaries to, enter into any sale and
lease-back transaction for the sale and leasing back of any Property, whether now owned or
hereafter acquired, of the Company or any Subsidiary of the Company, unless:

               (1) such transaction was entered into prior to the Closing Date;

               (2) such transaction was for the sale and leasing back of any Property by a Subsidiary of the
Company to the Company;

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               (3) such transaction involves a lease for less than three years;

               (4) the Company would be entitled to incur Indebtedness secured by a mortgage on the property
to be leased in an amount equal to the Attributable Liens with respect to such sale and lease-back
transaction without equally and ratably securing the Notes pursuant to Section 4.5; or

               (5) the Company applies an amount equal to the fair value of the Property sold to the purchase
of Property or to the retirement of long-term Indebtedness of the Company or any of its
Subsidiaries within 120 days of the effective date of any such sale and lease-back transaction. In
lieu of applying such amount to such retirement, the Company may, or may cause any of its
Subsidiaries to, deliver debt securities to the Trustee therefor for cancellation, such debt
securities to be credited at the cost thereof to the Company.

          (b) Notwithstanding the foregoing, the Company and any of its Subsidiaries may enter into any
sale lease-back transaction which would otherwise be subject to the foregoing restrictions if after
giving effect thereto and at the time of determination, Exempted Debt does not exceed the greater
of (a) 35% of Consolidated Net Worth calculated as of the closing date of the sale-leaseback
transaction or (b) 35% of Consolidated Net Worth calculated as of the Closing Date.

     10. Upon their original issuance, Rule 144A Notes shall be issued in the form of one or more
Global Securities registered in the name of DTC, as Depositary, or its nominee and deposited with
the Trustee, as custodian for DTC, for credit by DTC to the respective accounts of beneficial
owners of the Notes represented thereby (or such other accounts as they may direct). Such Global
Securities (to the extent issued in the form of a Global Note other than the Regulation S Global
Note), are collectively herein called the “Restricted Global Note.” The aggregate principal amount
of the Restricted Global Note may from time to time be increased or decreased by adjustments made
on the records of the Trustee, as custodian for the Depositary, including an increase in such
aggregate amount in connection with a corresponding decrease in the aggregate principal amount of
the Regulation S Global Note, as provided in Item 11 hereof.

     Upon their original issuance, Regulation S Notes (the “Regulation S Global Note”) shall be
issued in the form of one or more Global Securities registered in the name of DTC, as Depositary,
or its nominee and deposited with the Trustee at its Corporate Trust Office, as custodian for DTC,
for credit by DTC to the respective accounts of beneficial owners of the Notes represented thereby
(or such other accounts as such beneficial owners may direct) in accordance with the rules thereof.
The aggregate principal amount of the Regulation S Global Note may from time to time be increased
or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary,
including a decrease in such aggregate amount in connection with a corresponding increase in the
aggregate principal amount of the Restricted Global Note, as provided in Item 11 hereof.

     Beneficial interests in the Regulation S Global Note may only be held through Euroclear and
Clearstream until the expiration of the Distribution Compliance Period as provided in Item
11(b)(3).

     11. In addition to the procedures described in Section 2.7 of the Indenture, the following
additional terms shall apply to the 2010 Notes, the 2015 Notes and the 2035 Notes that are
Regulation S Notes and shall be incorporated into the Indenture with respect to the 2010 Notes, the
2015 Notes and the 2035 Notes:

          (a) Notwithstanding any other provisions of this Indenture or the Notes, transfers and
exchanges of Notes and beneficial interests in a Global Security of the kinds specified in this
Item 11 shall be

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made only in accordance with this Item 11. Transfers and exchanges subject to this Item 11
shall also be subject to the other provisions of the Indenture that are not inconsistent with this
Item 11.

          (b) Unless and until (1) a Regulation S Note is sold under an effective registration
statement, or (2) a Regulation S Note is exchanged for an Exchange Security in connection with an
effective registration statement, pursuant to the Registration Rights Agreement, the following
provisions shall apply:

               (1) Regulation S Global Note to Restricted Global Note. Subject to the third
paragraph of Item 10 above, if the holder of a beneficial interest in Regulation S Global Note
wishes at any time to transfer such interest to a Person who is required or permitted to take
delivery thereof in the form of a beneficial interest in a Restricted Global Note, such transfer
may be effected, subject to the rules and procedures of the Depositary, Euroclear and Clearstream,
in each case to the extent applicable (the “Applicable Procedures”), only in accordance with this
clause (1) provided that no transfers from a Regulation S Global Note to a Restricted Global Note
shall be allowed during the Distribution Compliance Period. Upon receipt by the Trustee, as Note
Registrar, of (as applicable) (i) written instructions given in accordance with the Applicable
Procedures from any member of, or direct participants in, the Depositary (“Agent Members”)
directing the Trustee to credit or cause to be credited to a specified Agent Member’s account a
beneficial interest in a Restricted Global Note in a principal amount equal to that of the
beneficial interest in a Regulation S Global Note to be so transferred and debited, (ii) a written
order given in accordance with the Applicable Procedures containing information regarding the
account of the Agent Member to be credited with, and the account of the Agent Member (and, if
applicable, the Euroclear or Clearstream account, as the case may be) to be debited for, such
beneficial interest and (iii) a Restricted Notes Certificate, substantially in the form of Exhibit
B hereto (a “Restricted Notes Certificate”) given by the holder of such beneficial interest, the
principal amount of such Restricted Global Note shall be increased, and the principal amount of
such Regulation S Global Note shall be decreased, by the principal amount of the beneficial
interest in the Regulation S Global Note to be so transferred, in each case by means of an
appropriate adjustment on the records of the Trustee, as Note Registrar, and the Trustee, as Note
Registrar, shall instruct the Depositary or its authorized representative to make a corresponding
adjustment to its records and to credit or cause to be credited to the account of the Person
specified in such instructions a beneficial interest in such Restricted Global Note having a
principal amount equal to the amount so transferred and debit or cause to be debited the Regulation
S Global Note.

               (2) Regulation S Global Note to be Held Through Euroclear or Clearstream during
Distribution Compliance Period. Beneficial interests in the Regulation S Global Note may be
held only in or through accounts maintained at the Depositary by Euroclear or Clearstream (or by
Agent Members acting for the account thereof) until the expiration of the Distribution Compliance
Period, and no person shall be entitled to effect any transfer or exchange that would result in any
such interest being held otherwise than in or through such an account until the expiration of the
Distribution Compliance Period.

     12. In addition to the definitions set forth in Article I of the Indenture, each of the Notes
shall include the following additional definitions, which, in the event of a conflict with the
definition of terms in the Indenture, shall control:

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per year equal
to the semi annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for that redemption date.

     “Agent Members” has the meaning specified in Item 11.

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     “Applicable Procedures” has the meaning specified in Item 11.

     “Attributable Liens” means in connection with a sale and lease-back transaction the lesser of:

               (1) the fair market value of the assets subject to such transaction; and

               (2) the present value (discounted at a rate per annum equal to the average interest borne by
all outstanding debt securities issued under the Indenture (which may include debt securities in
addition to the Notes) determined on a weighted average basis and compounded semi-annually) of the
obligations of the lessee for rental payments during the term of the related lease.

     “Capital Lease” means any Indebtedness represented by a lease obligation of a Person incurred
with respect to real property or equipment acquired or leased by such Person and used in its
business that is required to be recorded as a capital lease in accordance with GAAP.

     “Clearstream” means Clearstream Banking, societé anonyme.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of those notes.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the
Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and
lowest Reference Treasury Dealer Quotations, (2) if the Quotation Agent obtains fewer than three
Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations so
received or (3) if only one Reference Treasury Dealer Quotation is received, such quotation.

     “Consolidated Net Worth” means, as of any date of determination, the Stockholders’ Equity of
the Company and its Consolidated Subsidiaries on that date.

     “Consolidated Subsidiary” means, as of any date of determination and with respect to any
Person, any Subsidiary of that Person whose financial data is, in accordance with GAAP, reflected
in that Person’s consolidated financial statements.

     “Credit Facilities” means, one or more debt facilities or commercial paper facilities, in each
case, with banks or other institutional lenders providing for revolving credit loans, term loans,
receivables financing (including through the sale of receivables to such lenders or to special
purpose entities formed to borrow from such lenders against such receivables) or letters of credit,
in each case, as amended, restated, modified, renewed, refunded, replaced (whether upon or after
termination or otherwise) or refinanced (including by means of sales of debt securities to
institutional investors) in whole or in part from time to time.

     “Distribution Compliance Period” means the period of 40 consecutive days commencing on the
later of (i) the date the Notes are first issued to persons other than distributors (as defined in
Regulation S) in reliance on Regulation S (the Company and Trustee being entitled to rely on
written advice from the Initial Purchasers with respect thereto) and (ii) the Closing Date.

     “DTC” means The Depositary Trust Company, a New York Corporation (including its direct and
indirect participants).

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     “Euroclear” means the Euroclear Clearance System (or any successor securities clearing
agency).

     “Exempted Debt” means the sum of the following as of the date of determination:

               (1) Indebtedness of the Company and any of its Subsidiaries incurred after the Closing Date
and secured by Liens not permitted by Section 4.5(a) above; and

               (2) Attributable Liens of the Company and any of its Subsidiaries in respect of sale and
lease-back transactions entered into after the Closing Date pursuant to Section 4.6(b) above.

     “Governmental Agency” means:

               (1) any foreign, federal, state, county or municipal government, or political subdivision
thereof;

               (2) any governmental or quasi-governmental agency, authority, board, bureau, commission,
department, instrumentality or public body;

               (3) any court or administrative tribunal;

               (4) with respect to any Person, any arbitration tribunal or other nongovernmental authority to
whose jurisdiction that Person has consented.

     “Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person under:

               (1) interest rate swap agreements (whether from fixed to floating or from floating to fixed),
interest rate cap agreements and interest rate collar agreements;

               (2) other agreements or arrangements designed to manage interest rates or interest rate risk;

               (3) other agreements or arrangements designed to protect such Person against fluctuations in
currency exchange rates or commodity prices; and

               (4) other agreements or arrangements designed to protect such Person against fluctuations in
equity prices.

     “Indebtedness” of any Person means, without duplication, any indebtedness, whether or not
contingent, in respect of borrowed money or evidenced by bonds, notes, debentures or similar
instruments or letters of credit (or reimbursement agreements with respect thereto) or representing
the balance deferred and unpaid of the purchase price of any Property (including pursuant to
Capital Leases), except any such balance that constitutes an accrued expense or trade payable, if
and to the extent any of the foregoing indebtedness would appear as a liability upon a balance
sheet of such Person prepared on a consolidated basis in accordance with GAAP (but does not include
contingent liabilities which appear only in a footnote to a balance sheet), and shall also include,
to the extent not otherwise included, the guaranty of items which would be included within this
definition.

     “Laws” means, collectively, all foreign, federal, state and local statutes, treaties, rules,
regulations, ordinances, codes and administrative or controlling precedents of any Governmental
Agency.

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     “Lien” means any lien, security interest, charge or encumbrance of any kind (including any
conditional sale or other title retention agreement, any lease in the nature thereof, and any
agreement to give any security interest).

     “Permitted Liens” means:

               (1) Liens securing Indebtedness under Credit Facilities;

               (2) Liens on accounts receivable, merchandise inventory, equipment, and patents, trademarks,
trade names and other intangibles, securing Indebtedness of the Company;

               (3) Liens on any assets of the Company, any of its Subsidiaries’ assets, or the assets of any
joint venture to which the Company or any of its Subsidiaries is a party, created solely to secure
obligations incurred to finance the refurbishment, improvement or construction of such asset, which
obligations are incurred no later than 24 months after completion of such refurbishment,
improvement or construction, and all renewals, extensions, refinancings, replacements or refundings
of such obligations;

               (4) (a) Liens given to secure the payment of the purchase price incurred in connection with
the acquisition (including acquisition through merger or consolidation) of Property (including
shares of stock), including Capital Lease transactions in connection with any such acquisition, and
(b) Liens existing on Property at the time of acquisition thereof or at the time of acquisition by
the Company or one of its Subsidiaries of any Person then owning such Property whether or not such
existing Liens were given to secure the payment of the purchase price of the Property to which they
attach; provided that, with respect to clause (a), the Liens shall be given within 24 months after
such acquisition and shall attach solely to the Property acquired or purchased and any improvements
then or thereafter placed thereon;

               (5) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods;

               (6) Liens upon specific items of inventory or other goods and proceeds of any Person securing
such Person’s obligations in respect of bankers’ acceptances issued or created for the account of
such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

               (7) Liens securing reimbursement obligations with respect to letters of credit that encumber
documents and other Property relating to such letters of credit and the products and proceeds
thereof;

               (8) Liens on key-man life insurance policies granted to secure Indebtedness of the Company
against the cash surrender value thereof;

               (9) Liens encumbering customary initial deposits and margin deposits and other Liens in the
ordinary course of business, in each case securing Hedging Obligations and forward contract,
option, futures contracts, futures options, equity hedges or similar agreements or arrangements
designed to protect the Company or any of its Subsidiaries from fluctuations in interest rates,
currencies, equities or the price of commodities;

               (10) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by Company or any of its Subsidiaries in the
ordinary course of business;

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               (11) Pre-existing Liens on assets acquired by the Company or any of its Subsidiaries after the
Closing Date of the offering of the Notes;

               (12) Liens in favor of the Company or in favor of any of its Subsidiaries;

               (13) inchoate Liens incident to construction or maintenance of real property, or Liens
incident to construction or maintenance of real property, now or hereafter filed of record for sums
not yet delinquent or being contested in good faith, if reserves or other appropriate provisions,
if any, as shall be required by GAAP shall have been made therefore;

               (14) statutory Liens arising in the ordinary course of business with respect to obligations
which are not delinquent or are being contested in good faith, if reserves or other appropriate
provisions, if any, as shall be required by GAAP shall have been made therefore;

               (15) Liens consisting of pledges or deposits to secure obligations under workers’ compensation
laws or similar legislation, including Liens of judgments thereunder which are not currently
dischargeable;

               (16) Liens consisting of pledges or deposits of Property to secure performance in connection
with operating leases made in the ordinary course of business to which Company or any of its
Subsidiaries is a party as lessee, provided the aggregate value of all such pledges and deposits in
connection with any such lease does not at any time exceed 16-2/3% of the annual fixed rentals
payable under such lease;

               (17) Liens consisting of deposits of Property to secure statutory obligations of the Company
or statutory obligations of any of its Subsidiaries in the ordinary course of its business;

               (18) Liens consisting of deposits of Property to secure (or in lieu of) surety, appeal or
customs bonds in proceedings to which Company or any of its Subsidiaries is a party in the ordinary
course of its business, but not in excess of $25,000,000;

               (19) purchase money Liens or purchase money security interests upon or in any Property
acquired or held by Company or any of its Subsidiaries in the ordinary course of business to secure
the purchase price of such Property or to secure indebtedness incurred solely for the purpose of
financing the acquisition of such Property; and

               (20) Liens on Property subject to escrow or similar arrangements established in connection
with litigation settlements.

     “Property” means any property or asset, whether real, personal or mixed, or tangible or
intangible, including shares of capital stock.

     “Purchase Agreement” means the Purchase Agreement between the Company and the Representatives
(as defined therein), dated July 13, 2005, relating to the initial placement of the Notes.

     “Quotation Agent” means the Reference Treasury Dealer appointed by us.

     “Reference Treasury Dealer” means (1) each of Citigroup Global Markets Inc. and Goldman, Sachs
& Co. and their respective successors; provided, however, that if either of the foregoing shall
cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury
Dealer”), we shall substitute another Primary Treasury Dealer and (2) any other Primary Treasury
Dealer selected by us.

-10-

 

 

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the trustee by that Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding that Redemption Date.

     “Regulation S” means Regulation S under the Securities Act.

     “Regulation S Global Note” has the meaning specified in Item 10.

     “Regulation S Notes” means the Notes purchased by the Initial Purchasers from the Company
pursuant to the Purchase Agreement that were initially purchased pursuant to Regulation S and that
are restricted securities within the meaning of Rule 144. Such term includes the Regulation S
Global Note.

     “Restricted Global Note” has the meaning specified in Item 11.

     “Restricted Notes Certificate” has the meaning specified in Item 11.

     “Rule 144A Notes” means the Notes purchased by the Purchasers from the Company pursuant to the
Purchase Agreement, other than the Regulation S Notes.

     “Senior Officer” means the Chief Executive Officer, the President, any Vice-President, the
Treasurer, the Controller, the Director of Finance and Accounting, the Secretary, any Assistant
Treasurer or any Assistant Secretary of the Company.

     “Stockholders’ Equity” means, as of any date of determination, stockholders’ equity as of that
date determined in accordance with GAAP as reflected on the most recent balance sheet available to
the Company in accordance with GAAP; provided that there shall be excluded from Stockholders’
Equity any amount attributable to capital stock that is, directly or indirectly, required to be
redeemed or repurchased by the issuer thereof at a specified date or upon the occurrence of
specified events or at the election of the holder thereof.

     13. The Depository for the Notes shall be The Depository Trust Company (“DTC”).

     14. Each of the undersigned is authorized to approve the form, terms and conditions of the
Notes.

     15. Attached hereto as Exhibit B are true and correct copies of the Resolutions.

     16. Each of the undersigned has read the provisions of the Indenture, including the covenants
and conditions precedent, pertaining to the issuance of the Notes.

     17. In connection with this Certificate, each of the undersigned has examined the documents,
corporate records and certificates and has made such inquiries of the other officers of the
Company, which he has deemed necessary to enable him to express an informed opinion as to whether
or not such comments and conditions have been complied with.

     18. In the opinion of each of the undersigned, all of the conditions and covenants related to
the issuance of the Notes have been complied with.

-11-

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Officers’ Certificate as of the date
first set forth above.

	 	 	 	 	 	 	 
	 	 	By:	 	/s/ David Ebersman
	 	 	 	 	 
	 

	 	 	 	Name:
	 	David Ebersman
	 

	 	 	 	Title:
	 	 Senior Vice President and
	 

	 	 	 	 	 	Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Thomas T. Thomas
	 	 	 	 	 
	 

	 	 	 	Name:
	 	 Thomas T. Thomas
	 

	 	 	 	Title:	 	Treasurer

-12-

 

 

Annex A Form of 4.40% Senior Notes due 2010

[Face of Note]

[GLOBAL LEGEND]

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE OF THE DEPOSITORY. THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY, BY A NOMINEE OF THE DEPOSITORY
TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO
A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITORY.

[TRANSFER RESTRICTED LEGEND]

     THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED, PLEDGED OR SOLD WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.
BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT)
(AN “INSTITUTIONAL ACCREDITED INVESTOR”) OR (C) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE
IN AN OFFSHORE TRANSACTION (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN COMPLIANCE WITH
REGULATIONS UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD REFERRED
TO IN RULE 144(K) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS NOTE,
REOFFER, PLEDGE, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY
THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH
TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND
AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE
OBTAINED FROM THE TRUSTEE) AND IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
NOTES OF LESS THAN $100,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER THAT SUCH TRANSFER IS
IN COMPLIANCE WITH THE SECURITIES ACT, (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (F) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. PRIOR TO ANY TRANSFER, THE HOLDER OF
THIS SECURITY AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS

 A-1

 

 

TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IF THE PROPOSED TRANSFEREE
IS AN INSTITUTIONAL ACCREDITED INVESTOR OR A NON-U.S. PERSON, THE HOLDER MUST, PRIOR TO SUCH
TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATIONS REQUIREMENTS
OF THE SECURITIES ACT. IN ADDITION, IN CONNECTION WITH ANY TRANSFER OF THIS NOTE WITHIN THE TIME
PERIOD REFERRED TO IN RULE 144(K) UNDER THE SECURITIES ACT AFTER THE ORIGINAL ISSUANCE OF THE
NOTES, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE CERTIFICATE OF TRANSFER IN THE
FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY RELATING TO THE MANNER OF SUCH TRANSFER AND
SUBMIT THE CERTIFICATE OF TRANSFER TO THE TRUSTEE. AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S
UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO
REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTION.

 A-2

 

 

CUSIP/CINS __________

4.40% Senior Notes due 2010 (the “Notes”)

	No. ___	$____________

GENENTECH, INC.

promises to pay to CEDE & CO. or registered assigns, the principal sum of ____________________ [if
this Note is a Global Security, then insert — (which principal amount may from time to time be
increased or decreased to such other principal amounts (which, taken together with the principal
amounts of all other outstanding Notes of this Series, shall not exceed $500,000,000) by
adjustments made on the records of the Trustee in accordance with the Indenture)] on July 15, 2010.

	Interest Payment Dates:
 	January 15 and
July 15
 
	Record Dates:
 	January 1 and July 1
 
	Dated: 	_____________

 A-3

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

	 	 	 	 	 
	 	 	GENENTECH,
INC.
 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:

This is one of the Notes referred to

in the within-mentioned Indenture:

THE BANK OF NEW YORK TRUST
COMPANY, N.A., 
    as
Trustee

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Officer	 	 

 A-4

 

 

[Back of Note]

4.40% SENIOR NOTES DUE 2010

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) INTEREST. Genentech, Inc., a Delaware corporation (the “Company”), promises to pay
interest on the principal amount of this Note at 4.40% per annum from July 18, 2005 until maturity
and shall pay the Registration Default Damages (as defined in the Registration Rights Agreement),
if any, payable pursuant to Section 8 of the Registration Rights Agreement referred to below. The
Company will pay interest and Registration Default Damages, if any, semi-annually in arrears on
January 15 and July 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that the first Interest Payment Date shall be January 15, 2006; provided
further that after July 18, 2005, if there is no existing Default in the payment of interest, and
if this Note is authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date. In the event that any Interest Payment Date or Maturity date is not a Business Day, then the
payment will be made on the next Business Day without additional interest and with the same effect
as if it were made on the originally scheduled date. Interest on the Notes (including Registration
Default Damages) shall be computed on the basis of a 360-day year comprised of twelve 30-day
months.

     (2) METHOD OF PAYMENT. The Company will pay interest on the Notes (except defaulted interest)
and Registration Default Damages, if any, to the Persons who are registered Holders of Notes at the
close of business on the January 1 or July 1 immediately prior to the next succeeding Interest
Payment Date (whether or not such day is a Business Day), even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as provided in Section 2.13 of
the Indenture with respect to defaulted interest. The Notes will be payable as to principal,
interest and Registration Default Damages, if any, at the office or agency of the Company
maintained for such purpose in the Borough of Manhattan, the City and State of New York (or, if the
Company fails to maintain such office or agency, at the corporate trust office of the trustee or
its affiliate in New York, New York or if the trustee does not maintain an office in New York, at
the office of a paying agent in New York), or, at the option of the Company, payment of interest
and Registration Default Damages, if any, may be made by check mailed to the Holders at their
addresses set forth in the register of Holders. Such payment will be in the currency of the United
States of America.

     (3) PAYING AGENT AND REGISTRAR. Initially, The Bank of New York Trust Company, N.A., the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may
act in any such capacity.

     (4) INDENTURE. The terms of the Notes include those stated in the Indenture and those made
part of the Indenture by the Officers’ Certificate dated July 18, 2005 delivered pursuant thereto
(the “Officers’ Certificate”) and the TIA. The Notes are subject to all such terms, and the
Holders are referred to the Indenture and the TIA for a statement of them.

     (5) OPTIONAL REDEMPTION. At any time prior to maturity, the Company will have the option to
redeem all or a part of the Notes upon not less than 10 nor more than 60 days’ notice, at a

 A-5

 

 

redemption price equal to (i) the greater of (1) 100% of the principal amount of the Notes to
be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal
and interest in respect of the Notes to be redeemed (not including any portion of those payments of
interest accrued as of the date of redemption) discounted to the date of redemption (the
“Redemption Date”) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Adjusted Treasury Rate plus 10 basis points, plus (ii) accrued interest to the
Redemption Date. The Company will set forth the redemption price in an Officers’ Certificate
delivered to the Trustee no later than 5:00 p.m., New York City time, on the second Business Day
preceding the Redemption Date. Unless the Company defaults in the payment of the redemption price,
interest will cease to accrue on the Notes or portions thereof called for redemption on the
applicable redemption date.

     (6) MANDATORY REDEMPTION. The Company is not required to make mandatory redemption or sinking
fund payments with respect to the Notes.

     (7) NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 10 days but not more
than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed. The Company shall give the notice to the Trustee at least 10 days before the
Company mails the notice of redemption to each Holder as described in the Indenture (or such
shorter notice as may be acceptable to the Trustee).

     (8) DEFEASANCE PRIOR TO MATURITY. The Indenture contains provisions for defeasance of (i) the
entire indebtedness of the Notes or (ii) certain covenants and Events of Default with respect to
the Notes, in each case upon compliance with certain conditions set forth therein.

     (9) RESTRICTIVE COVENANTS. The Indenture and the Officers’ Certificate impose certain
limitations on the Company and its Subsidiaries, including limitations on the Company’s and its
Subsidiaries’ ability to create or incur certain Liens on any of their respective properties or
assets and to enter into certain sale and lease-back transactions and on the Company’s ability to
engage in mergers or consolidations or the conveyance, transfer or lease of all or substantially
all of its properties and assets. These limitations are subject to a number of important
qualifications and exceptions and reference is made to the Indenture and the Officers’ Certificate
for a description thereof.

     (10) FURTHER ISSUES. The Company may, from time to time, without the consent of the Holders
of the Notes, issue additional securities having the same ranking and the same interest rate,
maturity and other terms as this Note except for the issue price and issue date and, in some cases,
the first Interest Payment Date (the “Additional Notes”). Any such Additional Notes will, together
with the Notes then outstanding, constitute a single class of Notes under the Indenture. No
Additional Notes may be issued if an Event of Default has occurred and is continuing with respect
to the Notes.

     (11) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note
selected for redemption,

 A-6

 

 

except for the unredeemed portion of any Note being redeemed in part. Also, the Company need
not exchange or register the transfer of any Notes for a period of 15 days before a selection of
Notes to be redeemed or during the period between a record date and the corresponding Interest
Payment Date.

     (12) PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

     (13) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture or the
Notes may be amended or supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the then outstanding Notes voting as a single class, and any existing
Default or Event or Default or compliance with any provision of the Indenture or the Notes may be
waived with the consent of the Holders of a majority in aggregate principal amount of the then
outstanding Notes voting as a single class. Without the consent of any Holder of a Note, the
Indenture or the Notes may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to evidence the succession of another person to the company and assumption by an
such successor of the covenants of the Company of the covenants herein and in the Notes, to provide
for uncertificated Notes in addition to or in place of certificated Notes, to make any change that
does not adversely affect the rights of any holder of the Notes, including any change to conform
the Indenture to the offering memorandum, to provide for the issuance of an establish the form and
terms and conditions of any Notes of any series as permitted under the Indenture, to evidence and
provide for the acceptance of appointment under the Indenture by a successor trustee and to add to
or change any of the provisions of the Indenture necessary to provide for or facilitate the
administration of the trusts by more than one trustee, and to comply with the requirements of the
SEC in order to effect or maintain the qualification of the Indenture under the TIA.

     (14) DEFAULTS AND REMEDIES. If an Event of Default shall occur and be continuing, the
principal of the Notes may be declared (or, in certain cases, shall ipso facto become) due and
payable in the manner and with the effect provided in the Indenture.

     (15) TRUSTEE DEALINGS WITH COMPANY. The Trustee under the Indenture, in its individual or any
other capacity, may deal with the Company or an Affiliate of the Company with the same rights it
would have if it were not Trustee.

     (16) NO RECOURSE AGAINST OTHERS. A director, officer, employee or stockholder of the Company
shall not have any liability for any obligations of the Company under the Notes or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for the issuance of the Notes.

     (17) AUTHENTICATION. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     (18) ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (19) REGISTRATION RIGHTS OF HOLDERS. In addition to the rights provided to Holders of Notes
under the Indenture, Holders of restricted Notes will have all the rights set forth in the
Registration

A-7

 

Rights Agreement, dated as of July 18, 2005, between the Company and the other parties named
on the signature pages thereof (the “Registration Rights Agreement”).

     (20) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the other identification
numbers placed thereon.

     (21) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THE INDENTURE AND THIS NOTE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Genentech, Inc.

1 DNA Way

South San Francisco, CA 94080-4990

Attention: Investor Relations

 A-8

 

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code.)

And irrevocably appoint                                                                                                                         
to transfer this Note on the books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 
	Date:

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears
	 

	 	 	 	on the face of this Note)

	 	 	 	 	 
	Signature Guarantee*:

	 	 	 	 
	 

	 	 	 	 

 

	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

A-9

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR

REGISTRATION OF TRANSFER OF SECURITIES(1)

Re: 4.40% Senior Notes due 2010 (the “Securities”) of Genentech, Inc.

This certificate relates to $________________ principal amount of Securities owned in (check
applicable box)

o book-entry
or o definitive form by
                                                                
                
(the “Transferor”).

The Transferor has requested a Registrar or the Trustee to exchange or register the transfer
of such Securities.

     In connection with such request and in respect of each such Security, the Transferor
does hereby certify that the Transferor is familiar with transfer restrictions relating to
the Securities of the Indenture dated as of July 18, 2005 between Genentech, Inc. and The
Bank of New York Trust Company, N.A. (the “Indenture”), and the transfer of such Security is
being made pursuant to an effective registration statement under the Securities Act of 1933,
as amended (the “Securities Act”) (check applicable box) or the transfer or exchange, as the
case may be, of such Security does not require registration under the Securities Act because
(check applicable box):

o Such Security is being transferred pursuant to an effective registration statement
under the Securities Act.

o Such Security is being acquired for the Transferor’s own account, without transfer.

o Such Security is being transferred to the Company or a Subsidiary (as defined in the
Indenture) of the Company.

o Such Security is being transferred to a person the Transferor reasonably believes is a
“qualified institutional buyer” (as defined in Rule 144A or any successor provision thereto
(“Rule 144A”) under the Securities Act) that is purchasing for its own account or for the
account of a “qualified institutional buyer”, in each case to whom notice has been given
that the transfer is being made in reliance on such Rule 144A, and in each case in reliance
on Rule 144A.

o Such Security is being transferred pursuant to and in compliance with an exemption from
the registration requirements under the Securities Act in accordance with Rule 144 (or any
successor thereto) (“Rule 144”) under the Securities Act.

o Such Security is being transferred inside the United States to an institutional
“Accredited Investor” within the meaning of subparagraph (A)(1), (2), (3) or (7) of Rule 501
under the Securities Act.

 

	1	 	This certificate should only be included if
this Security is a restricted Security.

 A-10

 

 

o Such Security is being transferred outside the United States in an offshore transaction
(as that term is defined in Regulation S under the Securities Act) in compliance with
Regulation S under the Securities Act.

	 	 	 	 	 
	 	 	(Insert Name of Transferor)
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

Date:

 A-11

 

 

Annex B Form of 4.75% Senior Notes due 2015

[Face of Note]

[GLOBAL LEGEND]

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE OF THE DEPOSITORY. THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY, BY A NOMINEE OF THE DEPOSITORY
TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO
A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITORY.

[TRANSFER RESTRICTED LEGEND]

     THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED, PLEDGED OR SOLD WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.
BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT)
(AN “INSTITUTIONAL ACCREDITED INVESTOR”) OR (C) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE
IN AN OFFSHORE TRANSACTION (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN COMPLIANCE WITH
REGULATIONS UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD REFERRED
TO IN RULE 144(K) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS NOTE,
REOFFER, PLEDGE, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY
THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH
TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND
AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE
OBTAINED FROM THE TRUSTEE) AND IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
NOTES OF LESS THAN $100,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER THAT SUCH TRANSFER IS
IN COMPLIANCE WITH THE SECURITIES ACT, (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (F) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. PRIOR TO ANY TRANSFER, THE HOLDER OF
THIS SECURITY AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS

 B-1

 

 

TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IF THE PROPOSED TRANSFEREE
IS AN INSTITUTIONAL ACCREDITED INVESTOR OR A NON-U.S. PERSON, THE HOLDER MUST, PRIOR TO SUCH
TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATIONS REQUIREMENTS
OF THE SECURITIES ACT. IN ADDITION, IN CONNECTION WITH ANY TRANSFER OF THIS NOTE WITHIN THE TIME
PERIOD REFERRED TO IN RULE 144(K) UNDER THE SECURITIES ACT AFTER THE ORIGINAL ISSUANCE OF THE
NOTES, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE CERTIFICATE OF TRANSFER IN THE
FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY RELATING TO THE MANNER OF SUCH TRANSFER AND
SUBMIT THE CERTIFICATE OF TRANSFER TO THE TRUSTEE. AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S
UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO
REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTION.

 B-2

 

 

CUSIP/CINS __________

4.75% Senior Notes due 2015 (the “Notes”)

			
	No. ___
	 	$__________________

GENENTECH, INC.

promises to pay to CEDE & CO. or registered assigns, the principal sum of ____________________ [if
this Note is a Global Security, then insert — (which principal amount may from time to time be
increased or decreased to such other principal amounts (which, taken together with the principal
amounts of all other outstanding Notes of this Series, shall not exceed $1,000,000,000) by
adjustments made on the records of the Trustee in accordance with the Indenture)] on July 15, 2015.

	Interest Payment Dates:
 	January 15 and
July 15
 
	Record Dates:
 	January 1 and July 1
 
	Dated: 	_____________

 B-3

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

	 	 	 	 	 
	 	 	GENENTECH, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

This is one of the Notes referred to

in the within-mentioned Indenture:

THE BANK OF NEW YORK TRUST COMPANY, N.A.,

     as Trustee

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Officer	 	 

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[Back of Note]

4.75% SENIOR NOTES DUE 2015

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) INTEREST. Genentech, Inc., a Delaware corporation (the “Company”), promises to pay
interest on the principal amount of this Note at 4.75% per annum from July 18, 2005 until maturity
and shall pay the Registration Default Damages (as defined in the Registration Rights Agreement),
if any, payable pursuant to Section 8 of the Registration Rights Agreement referred to below. The
Company will pay interest and Registration Default Damages, if any, semi-annually in arrears on
January 15 and July 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that the first Interest Payment Date shall be January 15, 2006; provided
further that after July 18, 2005, if there is no existing Default in the payment of interest, and
if this Note is authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date. In the event that any Interest Payment Date or Maturity date is not a Business Day, then the
payment will be made on the next Business Day without additional interest and with the same effect
as if it were made on the originally scheduled date. Interest on the Notes (including Registration
Default Damages) shall be computed on the basis of a 360-day year comprised of twelve 30-day
months.

     (2) METHOD OF PAYMENT. The Company will pay interest on the Notes (except defaulted interest)
and Registration Default Damages, if any, to the Persons who are registered Holders of Notes at the
close of business on the January 1 or July 1 immediately prior to the next succeeding Interest
Payment Date (whether or not such day is a Business Day), even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as provided in Section 2.13 of
the Indenture with respect to defaulted interest. The Notes will be payable as to principal,
interest and Registration Default Damages, if any, at the office or agency of the Company
maintained for such purpose in the Borough of Manhattan, the City and State of New York (or, if the
Company fails to maintain such office or agency, at the corporate trust office of the trustee or
its affiliate in New York, New York or if the trustee does not maintain an office in New York, at
the office of a paying agent in New York), or, at the option of the Company, payment of interest
and Registration Default Damages, if any, may be made by check mailed to the Holders at their
addresses set forth in the register of Holders. Such payment will be in the currency of the United
States of America.

     (3) PAYING AGENT AND REGISTRAR. Initially, The Bank of New York Trust Company, N.A., the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may
act in any such capacity.

     (4) INDENTURE. The terms of the Notes include those stated in the Indenture and those made
part of the Indenture by the Officers’ Certificate dated July 18, 2005 delivered pursuant thereto
(the “Officers’ Certificate”) and the TIA. The Notes are subject to all such terms, and the
Holders are referred to the Indenture and the TIA for a statement of them.

     (5) OPTIONAL REDEMPTION. At any time prior to maturity, the Company will have the option to
redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice, at a

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redemption price equal to (i) the greater of (1) 100% of the principal amount of the Notes to
be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal
and interest in respect of the Notes to be redeemed (not including any portion of those payments of
interest accrued as of the date of redemption) discounted to the date of redemption (the
“Redemption Date”) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Adjusted Treasury Rate plus 15 basis points, plus (ii) accrued interest to the
Redemption Date. The Company will set forth the redemption price in an Officers’ Certificate
delivered to the Trustee no later than 5:00 p.m., New York City time, on the second Business Day
preceding the Redemption Date. Unless the Company defaults in the payment of the redemption price,
interest will cease to accrue on the Notes or portions thereof called for redemption on the
applicable redemption date.

     (6) MANDATORY REDEMPTION. The Company is not required to make mandatory redemption or sinking
fund payments with respect to the Notes.

     (7) NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 10 days but not more
than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed. The Company shall give the notice to the Trustee at least 10 days before the
Company mails the notice of redemption to each Holder as described in the Indenture (or such
shorter notice as may be acceptable to the Trustee).

     (8) DEFEASANCE PRIOR TO MATURITY. The Indenture contains provisions for defeasance of (i) the
entire indebtedness of the Notes or (ii) certain covenants and Events of Default with respect to
the Notes, in each case upon compliance with certain conditions set forth therein.

     (9) RESTRICTIVE COVENANTS. The Indenture and the Officers’ Certificate impose certain
limitations on the Company and its Subsidiaries, including limitations on the Company’s and its
Subsidiaries’ ability to create or incur certain Liens on any of their respective properties or
assets and to enter into certain sale and lease-back transactions and on the Company’s ability to
engage in mergers or consolidations or the conveyance, transfer or lease of all or substantially
all of its properties and assets. These limitations are subject to a number of important
qualifications and exceptions and reference is made to the Indenture and the Officers’ Certificate
for a description thereof.

     (10) FURTHER ISSUES. The Company may, from time to time, without the consent of the Holders
of the Notes, issue additional securities having the same ranking and the same interest rate,
maturity and other terms as this Note except for the issue price and issue date and, in some cases,
the first Interest Payment Date (the “Additional Notes”). Any such Additional Notes will, together
with the Notes then outstanding, constitute a single class of Notes under the Indenture. No
Additional Notes may be issued if an Event of Default has occurred and is continuing with respect
to the Notes.

     (11) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note
selected for redemption,

 B-6

 

 

except for the unredeemed portion of any Note being redeemed in part. Also, the Company need
not exchange or register the transfer of any Notes for a period of 15 days before a selection of
Notes to be redeemed or during the period between a record date and the corresponding Interest
Payment Date.

     (12) PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

     (13) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture or the
Notes may be amended or supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the then outstanding Notes voting as a single class, and any existing
Default or Event or Default or compliance with any provision of the Indenture or the Notes may be
waived with the consent of the Holders of a majority in aggregate principal amount of the then
outstanding Notes voting as a single class. Without the consent of any Holder of a Note, the
Indenture or the Notes may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to evidence the succession of another person to the company and assumption by an
such successor of the covenants of the Company of the covenants herein and in the Notes, to provide
for uncertificated Notes in addition to or in place of certificated Notes, to make any change that
does not adversely affect the rights of any holder of the Notes, including any change to conform
the Indenture to the offering memorandum, to provide for the issuance of an establish the form and
terms and conditions of any Notes of any series as permitted under the Indenture, to evidence and
provide for the acceptance of appointment under the Indenture by a successor trustee and to add to
or change any of the provisions of the Indenture necessary to provide for or facilitate the
administration of the trusts by more than one trustee, and to comply with the requirements of the
SEC in order to effect or maintain the qualification of the Indenture under the TIA.

     (14) DEFAULTS AND REMEDIES. If an Event of Default shall occur and be continuing, the
principal of the Notes may be declared (or, in certain cases, shall ipso facto become) due and
payable in the manner and with the effect provided in the Indenture.

     (15) TRUSTEE DEALINGS WITH COMPANY. The Trustee under the Indenture, in its individual or any
other capacity, may deal with the Company or an Affiliate of the Company with the same rights it
would have if it were not Trustee.

     (16) NO RECOURSE AGAINST OTHERS. A director, officer, employee or stockholder of the Company
shall not have any liability for any obligations of the Company under the Notes or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for the issuance of the Notes.

     (17) AUTHENTICATION. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     (18) ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (19) REGISTRATION RIGHTS OF HOLDERS. In addition to the rights provided to Holders of Notes
under the Indenture, Holders of restricted Notes will have all the rights set forth in the
Registration

 B-7

 

 

Rights Agreement, dated as of July 18, 2005, between the Company and the other parties named
on the signature pages thereof (the “Registration Rights Agreement”).

     (20) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the other identification
numbers placed thereon.

     (21) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THE INDENTURE AND THIS NOTE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Genentech, Inc.

1 DNA Way

South San Francisco, CA 94080-4990

Attention: Investor Relations

 B-8

 

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code.)

And irrevocably appoint                                                                                                                         
to transfer this Note on the books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 
	Date:

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears
	 

	 	 	 	on the face of this Note)

	 	 	 	 	 
	Signature Guarantee*:

	 	 	 	 
	 

	 	 	 	 

 

	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 B-9

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR

REGISTRATION OF TRANSFER OF
SECURITIES(1)

Re: 4.75% Senior Notes due 2015 (the “Securities”) of Genentech, Inc.

This certificate relates to $________________ principal amount of Securities owned in (check
applicable box)

o book-entry or o definitive form by                                                      
                
           
(the “Transferor”).

The Transferor has requested a Registrar or the Trustee to exchange or register the transfer
of such Securities.

     In connection with such request and in respect of each such Security, the Transferor
does hereby certify that the Transferor is familiar with transfer restrictions relating to
the Securities of the Indenture dated as of July 18, 2005 between Genentech, Inc. and The
Bank of New York Trust Company, N.A. (the “Indenture”), and the transfer of such Security is
being made pursuant to an effective registration statement under the Securities Act of 1933,
as amended (the “Securities Act”) (check applicable box) or the transfer or exchange, as the
case may be, of such Security does not require registration under the Securities Act because
(check applicable box):

o Such Security is being transferred pursuant to an effective registration statement
under the Securities Act.

o Such Security is being acquired for the Transferor’s own account, without transfer.

o Such Security is being transferred to the Company or a Subsidiary (as defined in the
Indenture) of the Company.

o Such Security is being transferred to a person the Transferor reasonably believes is a
“qualified institutional buyer” (as defined in Rule 144A or any successor provision thereto
(“Rule 144A”) under the Securities Act) that is purchasing for its own account or for the
account of a “qualified institutional buyer”, in each case to whom notice has been given
that the transfer is being made in reliance on such Rule 144A, and in each case in reliance
on Rule 144A.

o Such Security is being transferred pursuant to and in compliance with an exemption from
the registration requirements under the Securities Act in accordance with Rule 144 (or any
successor thereto) (“Rule 144”) under the Securities Act.

o Such Security is being transferred inside the United States to an institutional
“Accredited Investor” within the meaning of subparagraph (A)(1), (2), (3) or (7) of Rule 501
under the Securities Act.

 

	1	 	This certificate should only be included if
this Security is a restricted Security.

 B-10

 

 

o Such Security is being transferred outside the United States in an offshore transaction
(as that term is defined in Regulation S under the Securities Act) in compliance with
Regulation S under the Securities Act.

	 	 	 	 	 
	 	 	(Insert Name of Transferor)
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

Date:

 B-11

 

 

Annex C Form of 5.25% Senior Notes due 2035

[Face of Note]

[GLOBAL LEGEND]

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE OF THE DEPOSITORY. THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY, BY A NOMINEE OF THE DEPOSITORY
TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO
A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITORY.

[TRANSFER RESTRICTED LEGEND]

     THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED, PLEDGED OR SOLD WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.
BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT)
(AN “INSTITUTIONAL ACCREDITED INVESTOR”) OR (C) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE
IN AN OFFSHORE TRANSACTION (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN COMPLIANCE WITH
REGULATIONS UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD REFERRED
TO IN RULE 144(K) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS NOTE,
REOFFER, PLEDGE, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY
THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH
TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND
AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE
OBTAINED FROM THE TRUSTEE) AND IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
NOTES OF LESS THAN $100,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER THAT SUCH TRANSFER IS
IN COMPLIANCE WITH THE SECURITIES ACT, (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (F) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. PRIOR TO ANY TRANSFER, THE HOLDER OF
THIS SECURITY AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IF THE

 C-1

 

 

PROPOSED TRANSFEREE IS AN INSTITUTIONAL ACCREDITED INVESTOR OR A NON-U.S. PERSON, THE HOLDER
MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATIONS REQUIREMENTS OF THE SECURITIES ACT. IN ADDITION, IN CONNECTION WITH ANY TRANSFER OF
THIS NOTE WITHIN THE TIME PERIOD REFERRED TO IN RULE 144(K) UNDER THE SECURITIES ACT AFTER THE
ORIGINAL ISSUANCE OF THE NOTES, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE
CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY RELATING TO THE
MANNER OF SUCH TRANSFER AND SUBMIT THE CERTIFICATE OF TRANSFER TO THE TRUSTEE. AS USED HEREIN, THE
TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY
REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO
REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTION.

C-2

 

 

CUSIP/CINS __________

5.25% Senior Notes due 2035 (the “Notes”)

	No. ___	$____________

GENENTECH, INC.

promises to pay to CEDE & CO. or registered assigns, the principal sum of ____________________ [if
this Note is a Global Security, then insert — (which principal amount may from time to time be
increased or decreased to such other principal amounts (which, taken together with the principal
amounts of all other outstanding Notes of this Series, shall not exceed $500,000,000) by
adjustments made on the records of the Trustee in accordance with the Indenture)] on July 15, 2035.

	Interest Payment Dates:
 	January 15 and
July 15
 
	Record Dates:
 	January 1 and July 1
 
	Dated: 	_____________

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IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

	 	 	 	 	 
	 	 	GENENTECH, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:

This is one of the Notes referred to

in the within-mentioned Indenture:

THE BANK OF NEW YORK TRUST COMPANY, N.A.,

     as Trustee

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Officer	 	 

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[Back of Note]

5.25% SENIOR NOTES DUE 2035

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) INTEREST. Genentech, Inc., a Delaware corporation (the “Company”), promises to pay
interest on the principal amount of this Note at 5.25% per annum from July 18, 2005 until maturity
and shall pay the Registration Default Damages (as defined in the Registration Rights Agreement),
if any, payable pursuant to Section 8 of the Registration Rights Agreement referred to below. The
Company will pay interest and Registration Default Damages, if any, semi-annually in arrears on
January 15 and July 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that the first Interest Payment Date shall be January 15, 2006; provided
further that after July 18, 2005, if there is no existing Default in the payment of interest, and
if this Note is authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date. In the event that any Interest Payment Date or Maturity date is not a Business Day, then the
payment will be made on the next Business Day without additional interest and with the same effect
as if it were made on the originally scheduled date. Interest on the Notes (including Registration
Default Damages) shall be computed on the basis of a 360-day year comprised of twelve 30-day
months.

     (2) METHOD OF PAYMENT. The Company will pay interest on the Notes (except defaulted interest)
and Registration Default Damages, if any, to the Persons who are registered Holders of Notes at the
close of business on the January 1 or July 1 immediately prior to the next succeeding Interest
Payment Date (whether or not such day is a Business Day), even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as provided in Section 2.13 of
the Indenture with respect to defaulted interest. The Notes will be payable as to principal,
interest and Registration Default Damages, if any, at the office or agency of the Company
maintained for such purpose in the Borough of Manhattan, the City and State of New York (or, if the
Company fails to maintain such office or agency, at the corporate trust office of the trustee or
its affiliate in New York, New York or if the trustee does not maintain an office in New York, at
the office of a paying agent in New York), or, at the option of the Company, payment of interest
and Registration Default Damages, if any, may be made by check mailed to the Holders at their
addresses set forth in the register of Holders. Such payment will be in the currency of the United
States of America.

     (3) PAYING AGENT AND REGISTRAR. Initially, The Bank of New York Trust Company, N.A., the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may
act in any such capacity.

     (4) INDENTURE. The terms of the Notes include those stated in the Indenture and those made
part of the Indenture by the Officers’ Certificate dated July 18, 2005 delivered pursuant thereto
(the “Officers’ Certificate”) and the TIA. The Notes are subject to all such terms, and the
Holders are referred to the Indenture and the TIA for a statement of them.

     (5) OPTIONAL REDEMPTION. At any time prior to maturity, the Company will have the option to
redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice, at a
redemption price equal to (i) the greater of (1) 100% of the principal amount of the Notes to be
redeemed

 C-5

 

 

and (2) the sum of the present values of the remaining scheduled payments of principal and
interest in respect of the Notes to be redeemed (not including any portion of those payments of
interest accrued as of the date of redemption) discounted to the date of redemption (the
“Redemption Date”) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Adjusted Treasury Rate plus 20 basis points, plus (ii) accrued interest to the
Redemption Date. The Company will set forth the redemption price in an Officers’ Certificate
delivered to the Trustee no later than 5:00 p.m., New York City time, on the second Business Day
preceding the Redemption Date. Unless the Company defaults in the payment of the redemption price,
interest will cease to accrue on the Notes or portions thereof called for redemption on the
applicable redemption date.

     (6) MANDATORY REDEMPTION. The Company is not required to make mandatory redemption or sinking
fund payments with respect to the Notes.

     (7) NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 10 days but not more
than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed. The Company shall give the notice to the Trustee at least 10 days before the
Company mails the notice of redemption to each Holder as described in the Indenture (or such
shorter notice as may be acceptable to the Trustee).

     (8) DEFEASANCE PRIOR TO MATURITY. The Indenture contains provisions for defeasance of (i) the
entire indebtedness of the Notes or (ii) certain covenants and Events of Default with respect to
the Notes, in each case upon compliance with certain conditions set forth therein.

     (9) RESTRICTIVE COVENANTS. The Indenture and the Officers’ Certificate impose certain
limitations on the Company and its Subsidiaries, including limitations on the Company’s and its
Subsidiaries’ ability to create or incur certain Liens on any of their respective properties or
assets and to enter into certain sale and lease-back transactions and on the Company’s ability to
engage in mergers or consolidations or the conveyance, transfer or lease of all or substantially
all of its properties and assets. These limitations are subject to a number of important
qualifications and exceptions and reference is made to the Indenture and the Officers’ Certificate
for a description thereof.

     (10) FURTHER ISSUES. The Company may, from time to time, without the consent of the Holders
of the Notes, issue additional securities having the same ranking and the same interest rate,
maturity and other terms as this Note except for the issue price and issue date and, in some cases,
the first Interest Payment Date (the “Additional Notes”). Any such Additional Notes will, together
with the Notes then outstanding, constitute a single class of Notes under the Indenture. No
Additional Notes may be issued if an Event of Default has occurred and is continuing with respect
to the Notes.

     (11) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being redeemed in part.
Also, the Company need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

 C-6

 

 

     (12) PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

     (13) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture or the
Notes may be amended or supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the then outstanding Notes voting as a single class, and any existing
Default or Event or Default or compliance with any provision of the Indenture or the Notes may be
waived with the consent of the Holders of a majority in aggregate principal amount of the then
outstanding Notes voting as a single class. Without the consent of any Holder of a Note, the
Indenture or the Notes may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to evidence the succession of another person to the company and assumption by an
such successor of the covenants of the Company of the covenants herein and in the Notes, to provide
for uncertificated Notes in addition to or in place of certificated Notes, to make any change that
does not adversely affect the rights of any holder of the Notes, including any change to conform
the Indenture to the offering memorandum, to provide for the issuance of an establish the form and
terms and conditions of any Notes of any series as permitted under the Indenture, to evidence and
provide for the acceptance of appointment under the Indenture by a successor trustee and to add to
or change any of the provisions of the Indenture necessary to provide for or facilitate the
administration of the trusts by more than one trustee, and to comply with the requirements of the
SEC in order to effect or maintain the qualification of the Indenture under the TIA.

     (14) DEFAULTS AND REMEDIES. If an Event of Default shall occur and be continuing, the
principal of the Notes may be declared (or, in certain cases, shall ipso facto become) due and
payable in the manner and with the effect provided in the Indenture.

     (15) TRUSTEE DEALINGS WITH COMPANY. The Trustee under the Indenture, in its individual or any
other capacity, may deal with the Company or an Affiliate of the Company with the same rights it
would have if it were not Trustee.

     (16) NO RECOURSE AGAINST OTHERS. A director, officer, employee or stockholder of the Company
shall not have any liability for any obligations of the Company under the Notes or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for the issuance of the Notes.

     (17) AUTHENTICATION. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

     (18) ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     (19) REGISTRATION RIGHTS OF HOLDERS. In addition to the rights provided to Holders of Notes
under the Indenture, Holders of restricted Notes will have all the rights set forth in the
Registration Rights Agreement, dated as of July 18, 2005, between the Company and the other parties
named on the signature pages thereof (the “Registration Rights Agreement”).

     (20) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.

 C-7

 

 

No representation is made as to the accuracy of such numbers either as printed on the Notes or
as contained in any notice of redemption, and reliance may be placed only on the other
identification numbers placed thereon.

     (21) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THE INDENTURE AND THIS NOTE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Genentech, Inc.

1 DNA Way

South San Francisco, CA 94080-4990

Attention: Investor Relations

 C-8

 

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code.)

And irrevocably appoint                                                                                                                         
to transfer this Note on the books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 
	Date:

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears
	 

	 	 	 	on the face of this Note)

	 	 	 	 	 
	Signature Guarantee*:

	 	 	 	 
	 

	 	 	 	 

 

	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 C-9

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR

REGISTRATION OF TRANSFER OF SECURITIES(3)

Re: 5.25% Senior Notes due 2035 (the “Securities”) of Genentech, Inc.

This certificate relates to $________________ principal amount of Securities owned in (check
applicable box)

o book-entry or  o definitive form by _____________________ (the “Transferor”).

The Transferor has requested a Registrar or the Trustee to exchange or register the transfer
of such Securities.

     In connection with such request and in respect of each such Security, the Transferor
does hereby certify that the Transferor is familiar with transfer restrictions relating to
the Securities of the Indenture dated as of July 18, 2005 between Genentech, Inc. and The
Bank of New York Trust Company, N.A. (the “Indenture”), and the transfer of such Security is
being made pursuant to an effective registration statement under the Securities Act of 1933,
as amended (the “Securities Act”) (check applicable box) or the transfer or exchange, as the
case may be, of such Security does not require registration under the Securities Act because
(check applicable box):

o Such Security is being transferred pursuant to an effective registration statement under the Securities Act.

o Such Security is being acquired for the Transferor’s own account, without transfer.

o Such Security is being transferred to the Company or a Subsidiary (as defined in the Indenture) of the Company.

o Such Security is being transferred to a person the Transferor reasonably believes is a
“qualified institutional buyer” (as defined in Rule 144A or any successor provision thereto
(“Rule 144A”) under the Securities Act) that is purchasing for its own account or for the
account of a “qualified institutional buyer”, in each case to whom notice has been given
that the transfer is being made in reliance on such Rule 144A, and in each case in reliance
on Rule 144A.

o Such Security is being transferred pursuant to and in compliance with an exemption from
the registration requirements under the Securities Act in accordance with Rule 144 (or any
successor thereto) (“Rule 144”) under the Securities Act.

o Such Security is being transferred inside the United States to an institutional
“Accredited Investor” within the meaning of subparagraph (A)(1), (2), (3) or (7) of Rule 501
under the Securities Act.

o Such Security is being transferred outside the United States in an offshore transaction
(as that term is defined in Regulation S under the Securities Act) in compliance with
Regulation S under the Securities Act.

 

	3	 	This certificate should only be included if
this Security is a restricted Security.

 C-10

 

 

	 	 	 	 	 
	 	 	(Insert Name of Transferor)
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

Date:

 C-11

 

 

EXHIBIT A — Form of

Restricted Notes Certificate

RESTRICTED SECURITIES CERTIFICATE

The Bank of New York Trust Company, N.A.

700 South Flower Street

Suite 500

Los Angeles, CA 90017

Attention: Institutional Trust Services

  Re:
___% Senior Notes due 20___ of Genentech, Inc. (the “Notes”)

     Reference is hereby made to the Indenture, dated as of July 18, 2005, between the Genentech,
Inc. (the “Company”) and The Bank of New York Trust Company, N.A., as Trustee, as supplemented by
an Officers’ Certificate, dated July 18, 2005 (as supplemented, the “Indenture”). Terms used but
not defined herein and defined in Regulation S or Rule 144 under the Securities Act of 1933, as
amended (the “Securities Act”) or in the Indenture shall have the meanings given to them in
Regulation S or Rule 144 or the Indenture, as the case may be.

     This
certificate relates to U.S. $______ principal amount of the Company’s ___%
Senior Notes due 20___, which are evidenced by the following certificate(s) (the “Specified
Notes”):

     CUSIP [ISIN] No(s).                                                                                                                                                                

     CERTIFICATE No(s).                                                                                                                                                                

The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies
that either (i) it is the sole beneficial owner of the Specified Notes or (ii) it is acting on
behalf of all the beneficial owners of the Specified Notes and is duly authorized by them to do so.
Such beneficial owner or owners are referred to herein collectively as the “Owner.” If the
Specified Notes are represented by a Global Note, they are held through the Depositary or an Agent
Member in the name of the Undersigned, as or on behalf of the Owner. If the Specified Notes are
not represented by a Global Note, they are registered in the name of the Undersigned, as or on
behalf of the Owner.

     The Owner has requested that the Specified Notes be transferred to a person (the “Transferee”)
who will take delivery in the form of a Restricted Note or an interest in a Restricted Global Note.
In connection with such transfer, the Owner hereby certifies that, unless such transfer is being
effected pursuant to an effective Registration Statement under the Securities Act, (i) the Owner is
not a U.S. person and (ii) such transfer is being effected in accordance with Rule 144A or Rule 144
under the Securities Act and all applicable securities laws of the states of the United States and
other jurisdictions. Accordingly, the Owner hereby further certifies as:

1

 

     If the transfer is being effected in accordance with Rule 144A:

	 	(a)	 	the Specified Notes are being transferred to a
person that the Owner and any person acting on its behalf reasonably
believe is a “qualified institutional buyer” within the meaning of Rule
144A, acquiring for its own account or for the account of a qualified
institutional buyer;
	 
	 	(b)	 	the Owner and any person acting on its behalf
have taken reasonable steps to ensure that the Transferee is aware that
the Owner may be relying on Rule 144A in connection with the transfer;
and
	 
	 	(c)	 	the Specified Notes are being transferred in
compliance with any applicable blue sky securities law of all applicable
states of the United States.
	 
	 	If the transfer is being effected pursuant to Rule 144:
	 
	 	(a)	 	the transfer is occurring:

                         (i) after a holding period of at least one year (computed in accordance
with paragraph (d) of Rule 144) has elapsed since the Specified Notes were
last acquired from the Company or from an affiliate of the Company, whichever
is later, and is being effected in accordance with the applicable amount,
manner of sale and notice requirements of Rule 144; or

                         (ii) after a holding period of at least two years has elapsed since the
Specified Notes were last acquired from the Company or from an affiliate of
the Company, whichever is later, and the Owner is not, and during the
preceding three months has not been, an affiliate of the Company; and

	 	(b)	 	the Specified Notes are being transferred in
compliance with any applicable “blue sky” securities laws of all
applicable states of the United States.

     Upon giving effect to this request to exchange a beneficial interest in Regulation S Global
Notes for a beneficial interest in the Restricted Global Note, the resulting beneficial interest
shall be subject to the restrictions on transfer applicable to the Restricted Global Notes pursuant
to the Indenture and the Securities Act.

2

 

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company and the Purchasers under the Purchase Agreement.

	 	 	 	 	 	 	 
	Dated:

	 	 	 
	 
	 	 	          
        (Print the name of the Undersigned, as such
term is defined in the second subsection of this
certificate.)

	 	 	 	 	 	 	 
	 

	 	By: 	 	 	 	*
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	(If the Undersigned is a corporation, partnership
or fiduciary, the title of the 
	 

	 	person signing on behalf
of the Undersigned must be stated.)

 

* Signature must be guaranteed by an eligible Guarantor Institution (banks, stockbrokers,
savings and loan associations and credit unions) with membership in an approved signature medallion
program pursuant to Securities and Exchange Commission Rule 17Ad-15.
 

3

 

Exhibit B — Resolutions

4exv4w6

 

Exhibit 4.6

EXECUTION VERSION

GENENTECH, INC.

4.40% Senior Notes due 2010

4.75% Senior Notes due 2015

5.25% Senior Notes due 2035

REGISTRATION RIGHTS AGREEMENT

July 18, 2005

Citigroup Global Markets Inc.

Goldman, Sachs & Co.

As Representatives of the Initial Purchasers

c/o Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Ladies and Gentlemen:

               Genentech, Inc., a corporation organized under the laws of Delaware (the “Company”), proposes
to issue and sell to certain purchasers (the “Initial Purchasers”), for whom you (the
“Representatives”) are acting as representatives, $500,000,000 aggregate principal amount of its
4.40% Senior Notes due 2010 (the “2010 Notes”), $1,000,000,000 aggregate principal amount of its
4.75% Senior Notes due 2015 (the “2015 Notes”) and $500,000,000 aggregate principal amount of its
5.25% Senior Notes due 2035 (the “2035 Notes,” and together with the 2010 Notes and the 2035 Notes,
the “Securities”), upon the terms set forth in the Purchase Agreement between the Company and the
Representatives dated July 13, 2005 (the “Purchase Agreement”) relating to the initial placement
(the “Initial Placement”) of the Securities. To induce the Initial Purchasers to enter into the
Purchase Agreement and to satisfy a condition to your obligations thereunder, the Company agrees
with you for your benefit and the benefit of the holders from time to time of the Securities
(including the Initial Purchasers) (each a “Holder” and, collectively, the “Holders”), as follows:

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

“2010 New Securities” shall mean debt securities of the Company identical
in all material respects to the 2010 Notes (except that the transfer
restrictions shall be modified or eliminated, as appropriate).

 

 

“2015 New Securities” shall mean debt securities of the Company identical
in all material respects to the 2015 Notes (except that the transfer
restrictions shall be modified or eliminated, as appropriate).

“2035 New Securities” shall mean debt securities of the Company identical
in all material respects to the 2035 Notes (except that the transfer
restrictions shall be modified or eliminated, as appropriate).

“2010 Notes” shall have the meaning set forth in the preamble hereto.

“2015 Notes” shall have the meaning set forth in the preamble hereto.

“2035 Notes” shall have the meaning set forth in the preamble hereto.

               “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.

               “Affiliate” shall have the meaning specified in Rule 405 under the Act and the terms
“controlling” and “controlled” shall have meanings correlative thereto.

               “Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act and
its affiliates.

               “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to close in New
York City.

               “Closing Date” shall mean the date of the first issuance of the Securities.

               “Commission” shall mean the Securities and Exchange Commission.

               “Deferral Period” shall have the meaning indicated in Section 4(k)(ii) hereof.

               “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

               “Exchange Offer Registration Period” shall mean the earlier of (i) the 90-day period following
the consummation of the Registered Exchange Offer and (ii) the date no Exchanging Holder owns any
Registrable Securities.

               “Exchange Offer Registration Statement” shall mean a registration statement of the Company on
an appropriate form under the Act with respect to the Registered Exchange Offer, all amendments and
supplements to such registration statement, including post-effective amendments thereto, in each
case including the

-2-

 

Prospectus contained therein, all exhibits thereto and all material incorporated by reference
therein.

               “Exchanging Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a
Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for its own
account as a result of market-making activities or other trading activities (but not directly from
the Company or any Affiliate of the Company) for New Securities.

               “Final Memorandum” shall mean the offering memorandum, dated July 13, 2005 relating to the
Securities, including any and all exhibits thereto and any information incorporated by reference
therein as of such date.

               “Holder” shall have the meaning set forth in the preamble hereto; provided that “Holder” shall
mean the registered holder of such Securities in any context herein providing for obligations of
the Company the performance of which requires actual knowledge of the identity of beneficial
holders of any Securities other than the registered holder thereof.

               “Holders Counsel” shall mean one legal counsel appointed by the Holders of a majority of
Registrable Securities included in any Shelf Registration Statement.

               “Indenture” shall mean the indenture relating to the Securities, to be dated as of the
original issuance of the Securities, between the Company and The Bank of New York.

               “Initial Placement” shall have the meaning set forth in the preamble hereto.

               “Initial Purchaser” shall have the meaning set forth in the preamble hereto.

               “Losses” shall have the meaning set forth in Section 6(d) hereof.

               “Majority Holders” shall mean, on any date, Holders of a majority of the aggregate principal
amount of each of the 2010 Notes, the 2015 Notes and the 2035 Notes that constitute Registrable
Securities.

               “Managing Underwriters” shall mean the investment banker or investment bankers and manager or
managers that administer an underwritten offering, if any, under a Registration Statement.

               “NASD Rules” shall mean the Conduct Rules and the By-Laws of the National Association of
Securities Dealers, Inc.

               “New Securities” shall mean the 2010 New Securities, the 2015 New Securities and the 2035 New
Securities.

               “Prospectus” shall mean the prospectus included in any Registration Statement (including,
without limitation, a prospectus that discloses information

-3-

 

previously omitted from a prospectus filed as part of an effective registration statement in
reliance upon Rule 430A under the Act), as amended or supplemented by any prospectus supplement,
with respect to the terms of the offering of any portion of the Securities or the New Securities
covered by such Registration Statement, and all amendments and supplements thereto, including any
and all exhibits thereto and any information incorporated by reference therein.

               “Purchase Agreement” shall have the meaning set forth in the preamble hereto.

               “Registered Exchange Offer” shall mean the proposed offer of the Company to issue and deliver
to the Holders of the Securities that are not prohibited by any law or policy of the Commission
from participating in such offer, in exchange for the Securities, a like aggregate principal amount
of the New Securities.

               “Registrable Securities” shall mean (i) Securities other than those that have been either (A)
registered under a Registration Statement and disposed of in accordance therewith or (B)
distributed to the public pursuant to Rule 144 under the Act or any successor rule or regulation
thereto that may be adopted by the Commission and (ii) any New Securities resale of which by the
Holder thereof requires compliance with the prospectus delivery requirements of the Act; provided
that “Registrable Securities” shall not include any Securities that were eligible for exchange in
the Registered Exchange Offer, but were not so exchanged through the failure on the part of the
Holder thereof to participate in the Registered Exchange Offer and, provided, further, that such
Holder was permitted by applicable law to participate in the Registered Exchange Offer.

               “Registration Default” shall have the meaning set forth in Section 8 hereof.

               “Registration Default Damages” shall have the meaning set forth in Section 8 hereof.

               “Registration Statement” shall mean any Exchange Offer Registration Statement or Shelf
Registration Statement that covers any of the Securities or the New Securities pursuant to the
provisions of this Agreement, any amendments and supplements to such registration statement,
including post-effective amendments (in each case including the Prospectus contained therein), all
exhibits thereto and all material incorporated by reference therein.

               “Securities” shall have the meaning set forth in the preamble hereto.

               “Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof.

               “Shelf Registration Period” has the meaning set forth in Section 3(b) hereof.

-4-

 

               “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company
pursuant to the provisions of Section 3 hereof which covers some or all of the Securities or New
Securities, as applicable, on an appropriate form under Rule 415 under the Act, or any similar rule
that may be adopted by the Commission, amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

               “Trustee” shall mean the trustee with respect to the Securities under each of the Indenture.

               “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules
and regulations of the Commission promulgated thereunder.

               “underwriter” shall mean any underwriter of Securities in connection with an offering thereof
under a Shelf Registration Statement.

               2. Registered Exchange Offer. (a) Except as a result of an event described in
Section 3(a)(i) or 3(a)(ii) hereof, the Company shall prepare and, not later than 150 days
following the Closing Date, shall use its reasonable efforts to file with the Commission the
Exchange Offer Registration Statement with respect to the Registered Exchange Offer. The Company
shall use its reasonable efforts to cause the Exchange Offer Registration Statement to become
effective under the Act within 240 days of the Closing Date.

        (b) Upon the effectiveness of the Exchange Offer Registration Statement, the Company
shall commence promptly the Registered Exchange Offer, it being the objective of such
Registered Exchange Offer to enable each Holder electing to exchange Securities for New
Securities (assuming that such Holder is not an Affiliate of the Company, acquires the New
Securities in the ordinary course of such Holder’s business, has no arrangements with any
person to participate in the distribution of the New Securities and is not prohibited by
any law or policy of the Commission from participating in the Registered Exchange Offer).

        (c) In connection with the Registered Exchange Offer, the Company shall:

          (i) mail to each Holder a copy of the Prospectus forming part of the Exchange
Offer Registration Statement, together with an appropriate letter of transmittal
and related documents;

          (ii) keep the Registered Exchange Offer open for not less than 20 Business
Days and not more than 30 Business Days after the date notice thereof is mailed to
the Holders (or, in each case, longer if required by applicable law);

-5-

 

          (iii) use its reasonable efforts to keep the Exchange Offer Registration
Statement continuously effective under the Act, supplemented and amended as
required, to ensure that it is available for sales of New Securities by Exchanging
Dealers during the Exchange Offer Registration Period;

          (iv) utilize the services of a depositary for the Registered Exchange Offer
with an address in the Borough of Manhattan in New York City, which may be the
Trustee or an Affiliate of either of them;

          (v) permit Holders to withdraw tendered Securities at any time prior to the
close of business, New York time, on the last Business Day on which the Registered
Exchange Offer is open;

          (vi) prior to effectiveness of the Exchange Offer Registration Statement,
provide a supplemental letter to the Commission (A) stating that the Company is
conducting the Registered Exchange Offer in reliance on the position of the
Commission in Exxon Capital Holdings Corporation (pub. avail. May 13,
1988), Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B)
including a representation that the Company has not entered into any arrangement or
understanding with any person to distribute the New Securities to be received in
the Registered Exchange Offer and that, to the best of the Company’s information
and belief, each Holder participating in the Registered Exchange Offer is acquiring
the New Securities in the ordinary course of business and has no arrangement or
understanding with any person to participate in the distribution of the New
Securities; and

          (vii) comply in all respects with all applicable laws.

        (d) As soon as practicable after the close of the Registered Exchange Offer, the
Company shall:

          (i) accept for exchange all Securities tendered and not validly withdrawn
pursuant to the Registered Exchange Offer;

          (ii) deliver to the Trustee for cancellation in accordance with Section 4(s)
all Securities so accepted for exchange; and

          (iii) cause the Trustee promptly to authenticate and deliver to each Holder of
Securities a principal amount of New Securities equal to the principal amount of
the Securities of such Holder so accepted for exchange.

        (e) As a condition to participation in the Registered Exchange Offer, each Holder
hereby acknowledges and agrees that any Broker-Dealer and any such Holder in either case
using the Registered Exchange Offer to participate in a

-6-

 

distribution of the New Securities (x) could not under Commission policy as in effect
on the date of this Agreement rely on the position of the Commission in Exxon Capital
Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley and Co.,
Inc. (pub. avail. June 5, 1991), as interpreted in the Commission’s letter to Shearman
& Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply with the
registration and prospectus delivery requirements of the Act in connection with any
secondary resale transaction, which must be covered by an effective registration statement
containing the selling security holder information required by Item 507 or 508, as
applicable, of Regulation S-K under the Act if the resales are of New Securities obtained
by such Holder in exchange for Securities acquired by such Holder directly from the Company
or one of its Affiliates. Accordingly, as a condition to participation in the Registered
Exchange Offer, each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company that prior to and effective as of the time of the
consummation of the Registered Exchange Offer:

          (i) any New Securities received by such Holder will be acquired in the
ordinary course of business;

          (ii) such Holder is not engaged in and does not intend to engage in, and will
have no arrangement or understanding with any person to participate in the
distribution of the Securities or the New Securities within the meaning of the Act;
and

          (iii) such Holder is not an Affiliate of the Company.

               3. Shelf Registration. (a) If (i) due to any change in law or applicable
interpretations thereof by the Commission’s staff, (A) the Company determines that it is not
permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof or (B) New
Securities received by the Holders in the Registered Exchange Offer for the Notes are not or would
not be upon receipt, transferable by each such Holder without restriction under the Act; (ii) for
any other reason the Registered Exchange Offer is not consummated within 280 days of the date
hereof; (iii) prior to the completion of the Registered Exchange Offer, any Initial Purchaser shall
reasonably notify the Company in writing that such Initial Purchaser was prohibited by law or
Commission policy from participating in the Registered Exchange Offer or (iv) the Registered
Exchange Offer has been completed and a Registration Statement must be filed and a Prospectus must
be delivered by the Initial Purchasers in connection with any sale or offer of Registrable
Securities in order for the Initial Purchasers to receive freely tradeable New Securities pursuant
to Section 2(f) hereof, the Company shall use reasonable efforts to effect a Shelf Registration
Statement in accordance with subsection (b) below.

        (b) (i) The Company shall as promptly as practicable, file with the Commission and
shall use its reasonable efforts to cause to be declared effective under the Act within 120
days after so required or requested, a Shelf Registration Statement relating to the offer
and sale of the Securities or the New Securities, as

-7-

 

applicable, by the Holders thereof from time to time in accordance with the methods of
distribution elected by such Holders and set forth in such Shelf Registration Statement;
provided, however, that in no event shall the Company be required to file or cause to be
effective any such Shelf Registration Statement before the date on which it is required to
file or cause to be effective, as applicable, the Exchange Offer Registration Statement
pursuant to Section 2 hereof; and provided, further, that no Holder (other than an Initial
Purchaser) shall be entitled to have the Securities held by it covered by such Shelf
Registration Statement unless such Holder agrees in writing to be bound by all of the
provisions of this Agreement applicable to a Holder; and provided further, that with
respect to New Securities received by an Initial Purchaser in exchange for Securities
constituting any portion of an unsold allotment, the Company may, if permitted by current
interpretations by the Commission’s staff, file a post-effective amendment to the Exchange
Offer Registration Statement containing the information required by Item 507 or 508 of
Regulation S-K, as applicable, in satisfaction of its obligations under this subsection
with respect thereto, and any such Exchange Offer Registration Statement, as so amended,
shall be referred to herein as, and governed by the provisions herein applicable to, a
Shelf Registration Statement.

          (ii) The Company shall use its reasonable efforts to keep the Shelf
Registration Statement continuously effective, supplemented and amended as required
by the Act, in order to permit the Prospectus forming part thereof to be usable by
Holders for a period (the “Shelf Registration Period”) from the date the Shelf
Registration Statement is declared effective by the Commission until the earlier of
(A) the date upon which all the Securities or New Securities, as applicable,
covered by the Shelf Registration Statement have been sold pursuant to the Shelf
Registration Statement, (B) are sold pursuant to Rule 144 or saleable pursuant to
Rule 144(k) under the Act or (C) two years from the date of this Agreement.

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

               4. Additional Registration Procedures. In connection with any Shelf Registration
Statement and, to the extent applicable, any Exchange Offer Registration Statement, the following
provisions shall apply.

               (a) The Company shall:

-8-

 

          (i) furnish to each of the Representatives and to one counsel for the Holders,
not less than three Business Days prior to the filing thereof with the Commission,
a copy of any Exchange Offer Registration Statement and any Shelf Registration
Statement, and each amendment thereof and each amendment or supplement, if any, to
the Prospectus included therein (including all documents incorporated by reference
therein after the initial filing) and shall use its reasonable efforts to reflect
in each such document, when so filed with the Commission, such comments as the
Representatives reasonably propose;

          (ii) include the information set forth in Annex A hereto on the facing page of
the Exchange Offer Registration Statement, in Annex B hereto in the forepart of the
Exchange Offer Registration Statement in a section setting forth details of the
Exchange Offer, in Annex C hereto in the underwriting or plan of distribution
section of the Prospectus contained in the Exchange Offer Registration Statement,
and in Annex D hereto in the letter of transmittal delivered pursuant to the
Registered Exchange Offer;

          (iii) if requested by an Initial Purchaser, include the information required
by Item 507 or 508 of Regulation S-K, as applicable, in the Prospectus contained in
the Exchange Offer Registration Statement; provided that such Initial Purchaser
shall timely provide such information required by Sections 507 and 508 of
Regulation S-K; and

          (iv) in the case of a Shelf Registration Statement, use reasonable efforts to
include the names of the Holders that propose to sell Securities pursuant to the
Shelf Registration Statement as selling security holders in the Prospectus (or a
supplement to the Prospectus).

        (b) The Company shall ensure that (except with respect to information provided by
Holders for inclusion therein):

          (i) any Registration Statement and any amendment thereto and any Prospectus
forming part thereof and any amendment or supplement thereto complies in all
material respects with the Act; and

          (ii) any Registration Statement and any amendment thereto does not, when it
becomes effective, contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements
therein not misleading.

               (c) The Company shall advise the Representatives, the selling securityholders listed
in any Shelf Registration Statement (or a prospectus supplement thereto) and any Exchanging
Dealer under any Exchange Offer Registration Statement that has provided in writing to the
Company a telephone or facsimile number and address for notices, and, if requested by any
Representative

-9-

 

or any such Holder or Exchanging Dealer, shall confirm such advice in writing (which
notice pursuant to clauses (ii) through (v) hereof shall be accompanied by an instruction
to suspend the use of the Prospectus until the Company shall have remedied the basis for
such suspension and, until such time, Holders shall be obligated to refrain from using such
Prospectus):

          (i) when a Registration Statement and any amendment thereto has been filed
with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective;

          (ii) of any request by the Commission for any amendment or supplement to the
Registration Statement or the Prospectus or for additional information;

          (iii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the institution or threatening of
any proceeding for that purpose;

          (iv) of the receipt by the Company of any notification with respect to the
suspension of the qualification of the securities included therein for sale in any
jurisdiction or the institution or threatening of any proceeding for such purpose;
and

          (v) of the happening of any event that requires any change in the Registration
Statement or the Prospectus so that, as of such date, they (A) do not contain any
untrue statement of a material fact and (B) do not omit to state a material fact
required to be stated therein or necessary to make the statements therein (in the
case of the Prospectus, in the light of the circumstances under which they were
made) not misleading.

        (d) The Company shall use its reasonable efforts to prevent the issuance of any order
suspending the effectiveness of any Registration Statement or the qualification of the
securities therein for sale in any jurisdiction and, if issued, to obtain as soon as
practicable the withdrawal thereof.

        (e) If a Holder so requests and such information is not publicly available through the
Commission’s Edgar system or otherwise, the Company shall furnish to each Holder of
Securities covered by any Shelf Registration Statement, without charge, at least one copy
of such Shelf Registration Statement and any post-effective amendment thereto, including
all material incorporated therein by reference all exhibits thereto (including exhibits
incorporated by reference therein).

        (f) The Company shall, during the Shelf Registration Period, deliver to each Holder of
Securities covered by any Shelf Registration Statement, without charge, as many copies of
the Prospectus (including the Preliminary Prospectus) included in such Shelf Registration
Statement and any amendment or supplement

-10-

 

thereto as such Holder may reasonably request. The Company consents to the use of the
Prospectus or any amendment or supplement thereto by each of the selling Holders of
Securities in connection with the offering and sale of the Securities covered by the
Prospectus, or any amendment or supplement thereto, included in the Shelf Registration
Statement, subject to the obligation of Holders to cease using the Prospectus or such
amendment or supplement upon notice by the Company as provided in (c) above.

        (g) If requested and such information is not available through the Commission’s Edgar
system or otherwise publicly available, the Company shall furnish to each Exchanging Dealer
which so requests, without charge, at least one copy of the Exchange Offer Registration
Statement and any post-effective amendment thereto, including all material incorporated by
reference therein, and, if the Exchanging Dealer so requests in writing, all exhibits
thereto (including exhibits incorporated by reference therein).

        (h) The Company shall promptly deliver to each Initial Purchaser and each Exchanging
Dealer, without charge, as many copies of the Prospectus included in such Exchange Offer
Registration Statement and any amendment or supplement thereto as any such person may
reasonably request. The Company consents to the use of the Prospectus or any amendment or
supplement thereto by any Initial Purchaser and any Exchanging Dealer following the
Registered Exchange Offer in connection with the offering and sale of the New Securities
covered by the Prospectus, or any amendment or supplement thereto, included in the Exchange
Offer Registration Statement, subject to the obligation of Holders to cease using the
Prospectus or such amendment or supplement upon notice by the Company as provided in (c)
above.

        (i) Prior to the Registered Exchange Offer or any other offering of Securities
pursuant to any Registration Statement, the Company shall arrange, if necessary, for the
qualification of the Securities or the New Securities for sale under the laws of such
jurisdictions as any Holder shall reasonably request and shall maintain such qualification
in effect so long as required; provided that in no event shall the Company be obligated to
qualify to do business in any jurisdiction where it is not then so qualified or to take any
action that would subject it to service of process or subject itself to taxation, in any
such jurisdiction where it is not then so subject.

        (j) The Company shall cooperate with the Holders to facilitate the timely preparation
and delivery of certificates representing New Securities or Securities to be issued or sold
pursuant to any Registration Statement free of any restrictive legends and in such
denominations and registered in such names as Holders may request.

        (k) (i) Upon the occurrence of any event contemplated by subsections (c)(ii) through
(v) above, the Company shall promptly prepare a post-effective amendment to the applicable
Registration Statement or an amendment or

-11-

 

supplement to the related Prospectus or file any other required document so that, as
thereafter delivered to Initial Purchasers of the securities included therein, the
Prospectus will not include an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading. In such
circumstances, the period of effectiveness of the Exchange Offer Registration Statement
provided for in Section 2 shall be extended by the number of days from and including the
date of the giving of a notice of suspension pursuant to Section 4(c) to and including the
date when the Initial Purchasers, the Holders of the Securities and any known Exchanging
Dealer shall have received such amended or supplemented Prospectus pursuant to this
Section.

          (ii) Upon the occurrence or existence of any pending corporate development or
any other event or circumstance that, in the reasonable judgment of the Company,
makes it appropriate to suspend the availability of a Shelf Registration Statement
and the related Prospectus, the Company shall give notice (without notice of the
nature or details of such events) to the selling securityholders listed in such
Shelf Registration Statement (or a prospectus supplement thereto) that the
availability of the Shelf Registration is suspended and, upon actual receipt of any
such notice, each Holder agrees not to sell any Registrable Securities pursuant to
the Shelf Registration until such selling securityholder’s receipt or deemed
receipt of copies of the supplemented or amended Prospectus provided for in Section
3(i) hereof, or until it is advised in writing by the Company that the Prospectus
may be used, and has received copies of any additional or supplemental filings that
are incorporated or deemed incorporated by reference in such Prospectus. In the
event that the Company gives such notice, unless and until the period during which
the availability of the Shelf Registration and any Prospectus is suspended pursuant
to this clause (ii) (the “Deferral Period”) shall have exceeded 45 days in any
three-month period or 90 days in any twelve-month period, Registration Default
Damages shall not accrue.

        (l) Not later than the effective date of any Registration Statement, the Company shall
use reasonable efforts to provide a CUSIP number for the Securities or the New Securities,
as the case may be, registered under such Registration Statement and provide the Trustee
with printed certificates for such Securities or New Securities, in a form eligible for
deposit with The Depository Trust Company.

        (m) The Company shall comply with all applicable rules and regulations of the
Commission and shall make generally available to its security holders an earnings statement
satisfying the provisions of Section 11(a) of the Act as soon as practicable after the
effective date of the applicable Registration Statement and in any event no later than 45
days after the end of a 12-month period (or 90 days, if such period is a fiscal year)
beginning with the first month

-12-

 

of the Company’s first fiscal quarter commencing after the effective date of the
applicable Registration Statement.

        (n) The Company shall cause the Indenture to be qualified under the Trust Indenture
Act in a timely manner.

        (o) The Company may require each Holder of securities to be sold pursuant to any Shelf
Registration Statement to furnish to the Company such information regarding the Holder
(including reasonable and customary representations regarding the ownership and right to
sell the Securities included in such Shelf Registration Statement) and the distribution of
such securities as the Company may from time to time reasonably request for inclusion in
such Registration Statement. The Company may exclude from such Shelf Registration
Statement the Securities of any Holder that unreasonably fails to furnish such information
within a reasonable time after receiving such request.

        (p) In the case of any Shelf Registration Statement, if requested by the Majority
Holders, the Company shall enter into an underwriting agreement in customary form and take
all other appropriate actions in order to expedite or facilitate the registration or the
disposition of the Securities, and cause the underwriting agreement to contain
indemnification provisions and procedures no less favorable than those set forth in Section
6 hereof.

        (q) In the case of any Shelf Registration Statement, the Company shall, subject to the
last sentence of this clause (q):

          (i) make reasonably available for inspection by any underwriter participating
in any disposition pursuant to such Registration Statement, and any attorney,
accountant or other agent retained by any such underwriter or Holders Counsel all
relevant financial and other records and pertinent corporate documents of the
Company and its subsidiaries;

          (ii) cause the Company’s officers, directors, employees, accountants and
auditors to supply all relevant information reasonably requested by any such
underwriter, attorney, accountant or agent or Holders Counsel in connection with
any such Registration Statement as is customary for similar due diligence
examinations;

          (iii) make such representations and warranties to the Holders of Securities
registered thereunder and the underwriters, if any, in form, substance and scope as
are customarily made by issuers to underwriters in underwritten resale offerings
and covering matters including, but not limited to, those set forth in the Purchase
Agreement;

          (iv) obtain opinions of counsel to the Company and updates thereof (which
counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the Managing Underwriters, if any)

-13-

 

addressed to the underwriters, if any, covering such matters as are
customarily covered in opinions requested in underwritten offerings, provided that,
in the case of non-underwritten resales from a Shelf Registration Statement, such
opinions will be addressed to the Holders of the Securities sold in such offering;

          (v) obtain “comfort” letters and updates thereof from the independent
certified public accountants of the Company (and, if necessary, any other
independent certified public accountants of any subsidiary of the Company or of any
business acquired by the Company for which financial statements and financial data
are, or are required to be, included in the Registration Statement), addressed to
each selling Holder of Securities registered thereunder and the underwriters, if
any, in customary form and covering matters of the type customarily covered in
“comfort” letters in connection with underwritten resale offerings; and

          (vi) deliver such documents and certificates as may be reasonably requested by
the Managing Underwriters, if any, or Holders Counsel including those to evidence
compliance with Section 4(k) and with any customary conditions contained in the
underwriting agreement or other agreement entered into by the Company.

The actions set forth in clauses (iii), (iv), (v) and (vi) of this paragraph (q) shall be performed
at (A) the effectiveness of such Registration Statement and each post-effective amendment thereto;
and (B) each closing under any underwriting or similar agreement as and to the extent required
thereunder. Notwithstanding the foregoing, the Company shall only be required to grant Holders
Counsel the rights provided in this clause (q) once in any 12 month period.

In connection with such Shelf Registration Statement, the Company may require each Holder and
Holders Counsel to maintain in confidence and not to disclose to any other person any information
or records reasonably designated by the Company as being confidential, until such time as (A) such
information becomes a matter of public record (whether by virtue of its inclusion in such
registration statement or otherwise), or (B) such person shall be required so to disclose such
information pursuant to a subpoena or order of any court or other governmental agency or body
having jurisdiction over the matter (subject to the requirements of such order, and only after such
person shall have given the Company prompt prior written notice of such requirement), or (C) such
information is required to be set forth in such Shelf Registration Statement or the prospectus
included therein or in an amendment to such Shelf Registration Statement or an amendment or
supplement to such prospectus in order that such Shelf Registration Statement, prospectus,
amendment or supplement, as the case may be, complies with applicable requirements of the federal
securities laws and the rules and regulations of the Commission and does not contain an untrue
statement of a material fact or omit to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the circumstances then
existing; provided that Holders

-14-

 

Counsel shall be permitted to discuss the results of its due diligence examination with any of the
Holders.

        (r) If a Registered Exchange Offer is to be consummated, upon delivery of the
Securities by Holders to the Company (or to such other person as directed by the Company)
in exchange for the New Securities, the Company shall mark, or caused to be marked, on the
Securities so exchanged that such Securities are being cancelled in exchange for the New
Securities. In no event shall the Securities be marked as paid or otherwise satisfied.

        (s) The Company shall use its reasonable efforts if the Securities have been rated
prior to the initial sale of such Securities, to confirm such ratings will apply to the
Securities or the New Securities, as the case may be, covered by a Registration Statement.

        (t) In the event that any Broker-Dealer shall underwrite any Securities or participate
as a member of an underwriting syndicate or selling group or “assist in the distribution”
(within the meaning of the NASD Rules) thereof, whether as a Holder of such Securities or
as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Company shall reasonably assist such Broker-Dealer in complying with the
NASD Rules.

        (u) The Company shall use its best efforts to take all other steps necessary to effect
the registration of the Securities or the New Securities, as the case may be, covered by a
Registration Statement.

               5. Registration Expenses. The Company shall bear all expenses incurred in connection
with the performance of its obligations under Sections 2, 3 and 4 hereof and, in the event of any
Shelf Registration Statement, will reimburse the Holders for the reasonable fees and disbursements
(not in excess of $75,000) of one firm or counsel (which shall initially be Skadden, Arps, Slate,
Meagher & Flom LLP, but which may be another nationally recognized law firm experienced in
securities matters designated by the Majority Holders) to act as counsel for the Holders in
connection therewith, and, in the case of any Exchange Offer Registration Statement, will reimburse
the Initial Purchasers for the reasonable fees and disbursements of counsel acting in connection
therewith. Each Holder of securities included in any Shelf Registration Statement shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to the sale of such
Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

               6. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Holder of Securities or New Securities, as the case may be, covered by any
Registration Statement, each Initial Purchaser and, with respect to any Prospectus delivery as
contemplated in Section 4(h) hereof, each Exchanging Dealer, the directors, officers, employees,
Affiliates and agents of each such Holder, Initial Purchaser or Exchanging Dealer and each person
who controls any such Holder, Initial Purchaser or Exchanging Dealer within the meaning of either
the Act or the

-15-

 

Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to
which they or any of them may become subject under the Act, the Exchange Act or other federal or
state statutory law or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement as
originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus,
or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein (in the case of any preliminary Prospectus or the Prospectus, in the
light of the circumstances under which they were made) not misleading, and agrees to reimburse each
such indemnified party, as incurred, for any legal or other expenses reasonably incurred by it in
connection with investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon any such
untrue statement or alleged untrue statement or omission or alleged omission made therein in
reliance upon and in conformity with written information furnished to the Company by or on behalf
of the party claiming indemnification specifically for inclusion therein. This indemnity agreement
shall be in addition to any liability that the Company may otherwise have.

          The Company also agrees to indemnify as provided in this Section 6(a) or contribute as
provided in Section 6(d) hereof to Losses of each underwriter, if any, of Securities or New
Securities, as the case may be, registered under a Shelf Registration Statement, their directors,
officers, employees, Affiliates or agents and each person who controls such underwriter on
substantially the same basis as that of the indemnification of the Initial Purchasers and the
selling Holders provided in this Section 6(a) and shall, if requested by any Holder, enter into an
underwriting agreement reflecting such agreement, as provided in Section 4(p) hereof.

   (b) Each Holder of securities covered by a Registration Statement (including each
Initial Purchaser that is a Holder, in such capacity) severally and not jointly agrees to
indemnify and hold harmless the Company, each of its directors, each of its officers who
signs such Registration Statement and each person who controls the Company within the
meaning of either the Act or the Exchange Act, to the same extent as the foregoing
indemnity from the Company to each such Holder, but only with reference to written
information relating to such Holder furnished to the Company by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing indemnity. This
indemnity agreement will be in addition to any liability that any such Holder may otherwise
have.

   (c) Promptly after receipt by an indemnified party under this Section 6 or written
notice of the commencement of any action, such indemnified party will, if a claim in
respect thereof is to be made against the indemnifying party under this Section, notify the
indemnifying party in writing of the commencement

-16-

 

thereof; but the failure so to notify the indemnifying party (i) will not relieve it
from liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses; and (ii) will not, in any event,
relieve the indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party
shall be entitled to appoint counsel (including local counsel) of the indemnifying party’s
choice at the indemnifying party’s expense to represent the indemnified party in any action
for which indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel, other than
local counsel if not appointed by the indemnifying party, retained by the indemnified party
or parties except as set forth below); provided, however, that such counsel
shall be reasonably satisfactory to the indemnified party. Notwithstanding the
indemnifying party’s election to appoint counsel (including local counsel) to represent the
indemnified party in an action, the indemnified party shall have the right to employ
separate counsel (including local counsel), and the indemnifying party shall bear the
reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would present such
counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets
of, any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal defenses
available to it and/or other indemnified parties that are different from or additional to
those available to the indemnifying party; (iii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of the institution of such action; or (iv) the
indemnifying party shall authorize the indemnified party to employ separate counsel at the
expense of the indemnifying party. An indemnifying party will not, without the prior
written consent of the indemnified parties, settle or compromise or consent to the entry of
any judgment with respect to any pending or threatened claim, action, suit or proceeding in
respect of which indemnification or contribution may be sought hereunder (whether or not
the indemnified parties are actual or potential parties to such claim or action) unless
such settlement, compromise or consent includes an unconditional release of each
indemnified party from all liability arising out of such claim, action, suit or proceeding.

        (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section
is unavailable to or insufficient to hold harmless an indemnified party for any reason,
then each applicable indemnifying party shall have a joint and several obligation to
contribute to the aggregate losses, claims, damages and liabilities (including legal or
other expenses reasonably incurred in connection with investigating or defending any loss,
claim, liability, damage or action) (collectively “Losses”) to which such indemnified party
may be subject in such proportion as is appropriate to reflect the relative benefits
received by such

-17-

 

indemnifying party, on the one hand, and such indemnified party, on the other hand,
from the Initial Placement and the Registration Statement which resulted in such Losses;
provided, however, that in no case shall any Initial Purchaser be
responsible, in the aggregate, for any amount in excess of the purchase discount or
commission applicable to such Security, or in the case of a New Security, applicable to the
Security that was exchangeable into such New Security, as set forth in the Final
Memorandum, nor shall any underwriter be responsible for any amount in excess of the
underwriting discount or commission applicable to the securities purchased by such
underwriter under the Registration Statement which resulted in such Losses. If the
allocation provided by the immediately preceding sentence is unavailable for any reason,
the indemnifying party and the indemnified party shall contribute in such proportion as is
appropriate to reflect not only such relative benefits but also the relative fault of such
indemnifying party, on the one hand, and such indemnified party, on the other hand, in
connection with the statements or omissions which resulted in such Losses as well as any
other relevant equitable considerations. Benefits received by the Company shall be deemed
to be equal to the total net proceeds received from the Initial Placement (before deducting
expenses) of the 2010 Notes, the 2015 Notes and the 2035 Notes as set forth in the Final
Memorandum. Benefits received by the Initial Purchasers shall be deemed to be equal to the
total purchase discounts and commissions as set forth on the cover page of the Final
Memorandum, and benefits received by any other Holders shall be deemed to be equal to the
value of receiving Securities or New Securities, as applicable, registered under the Act.
Benefits received by any underwriter shall be deemed to be equal to the total underwriting
discounts and commissions, as set forth on the cover page of the Prospectus forming a part
of the Registration Statement which resulted in such Losses. Relative fault shall be
determined by reference to, among other things, whether any untrue or any alleged untrue
statement of a material fact or omission or alleged omission to state a material fact
relates to information provided by the indemnifying party, on the one hand, or by the
indemnified party, on the other hand, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such untrue
statement or omission. The parties agree that it would not be just and equitable if
contribution were determined by pro rata allocation (even if the Holders were treated as
one entity for such purpose) or any other method of allocation which does not take account
of the equitable considerations referred to above. Notwithstanding the provisions of this
paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section, each person who
controls a Holder within the meaning of either the Act or the Exchange Act and each
director, officer, employee and agent of such Holder shall have the same rights to
contribution as such Holder, and each person who controls the Company within the meaning of
either the Act or the Exchange Act, each officer of the Company who shall have signed the
Registration Statement and each director of the Company shall have the same rights to

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contribution as the Company, subject in each case to the applicable terms and
conditions of this paragraph (d).

        (e) The provisions of this Section will remain in full force and effect, regardless of
any investigation made by or on behalf of any Holder or the Company or any of the
indemnified persons referred to in this Section 6, and will survive the sale by a Holder of
securities covered by a Registration Statement.

               7. Underwritten Registrations. (a) If any of the Securities or New Securities, as
the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten
offering, the Managing Underwriters shall be selected by the Majority Holders, provided that such
Managing Underwriters are reasonably acceptable to the Company.

        (b) No person may participate in any underwritten offering pursuant to any Shelf
Registration Statement, unless such person (i) agrees to sell such person’s Securities or
New Securities, as the case may be, on the basis provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements; and (ii) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such underwriting arrangements.

               8. Registration Defaults. (A) Notwithstanding any other provision of this Agreement,
the Company shall not be required to make any filing, amendment or supplement or cause, maintain or
pursue any registration or effectiveness, or co-operate in furtherance thereof, if it determines in
good faith that such action would be injurious or detrimental to its interests or business;
provided that such determination shall not affect the rights of Holders of Securities pursuant to
Section 8(B) hereof. (B) If any of the following events shall occur (a “Registration Default”),
then the Company shall pay liquidated damages (the “Registration Default Damages”) to the Holders
of Securities in respect of the Securities as follows:

        (a) if any Registration Statement required by this Agreement is not filed with the
Commission on or prior to the date specified for such filing in this Agreement, then
Registration Default Damages shall accrue on the Registrable Securities at a rate of 0.25%
per annum for the first 90 days from and including such specified date and 0.50% per annum
thereafter; or

        (b) if any Registration Statement required by this Agreement is not declared effective
by the Commission on or prior to the date by which reasonable efforts are to be used to
cause such effectiveness under this Agreement, then commencing on the day after such
specified date, Registration Default Damages shall accrue on the Registrable Securities at
a rate of 0.25% per annum for the first 90 days from and including such specified date and
0.50% per annum thereafter; or

-19-

 

        (c) if any Registration Statement required by this Agreement has been declared
effective but ceases to be effective at any time at which it is required to be effective
under this Agreement, then commencing on the day the Registration Statement ceases to be
effective, Registration Default Damages shall accrue on the Registrable Securities at a
rate of 0.25% per annum for the first 90 days from and including such date on which the
Registration Statement ceases to be effective and 0.50% per annum thereafter;

provided, however, that (1) upon the filing of the Registration Statement (in the
case of paragraph (a) above), (2) upon the effectiveness of the Registration Statement (in the case
of paragraph (b) above), or (3) upon the effectiveness of the Registration Statement which had
ceased to remain effective (in the case of paragraph (c) above), Registration Default Damages shall
cease to accrue.

Notwithstanding any other provision of this Agreement, Registration Default Damages shall be the
exclusive monetary remedy for failure to register the exchange or resale of Securities or to
maintain effectiveness thereof or for any Registration Default, provided that if liquidated damages
are deemed unenforceable, the Holders shall be entitled to monetary damages in an equivalent
amount. In no event shall the Company be required to pay Registration Default Damages in excess of
0.50% per annum, whether or not multiple Registration Defaults exist.

               9. No Inconsistent Agreements. The Company has not entered into, and agrees not to
enter into, any agreement with respect to its securities that is inconsistent with the rights
granted to the Holders herein or that otherwise conflicts with the provisions hereof.

               10. Amendments and Waivers. The provisions of this Agreement may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from the provisions
hereof may not be given, unless the Company has obtained the written consent of the Holders of a
majority of the aggregate principal amount of the Registrable Securities outstanding affected by
such amendment; provided that, with respect to any matter that directly or indirectly
affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent
of each such Initial Purchaser against which such amendment, qualification, supplement, waiver or
consent is to be effective; provided, further, that no amendment, qualification,
supplement, waiver or consent with respect to Section 8(B) hereof shall be effective as against any
Holder of Registered Securities unless consented to in writing by such Holder; and
provided, further, that the provisions of this Article 10 may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from the provisions
hereof may not be given, unless the Company has obtained the written consent of the Initial
Purchasers and each Holder. Notwithstanding the foregoing (except the foregoing provisos), a
waiver or consent to departure from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders whose Securities or New Securities, as the case may be, are
being sold pursuant to a Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by the Majority

-20-

 

Holders, determined on the basis of Securities or New Securities, as the case may be, being
sold rather than registered under such Registration Statement.

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

        (a) if to a Holder, at the most current address given by such holder to the Company in
accordance with the provisions of this Section 11, which address initially is, with respect
to each Holder, the address of such Holder maintained by the Registrar under the 2010
Indenture, the 2015 Indenture or the 2035 Indenture, as the case may be;

        (b) if to the Representatives, initially at the address or addresses set forth in the
Purchase Agreement; and

        (c) if to the Company, initially at its address set forth in the Purchase Agreement.

               All such notices and communications shall be deemed to have been duly given and received when
(i) confirmation is received with respect to telex or telecopier or (ii) delivered with respect to
hand-delivery, air courier guaranteeing overnight delivery or registered mail return receipt
requested.

               The Initial Purchasers or the Company by notice to the other parties may designate additional
or different addresses for subsequent notices or communications.

               12. Remedies. Each Holder, in addition to being entitled to exercise all rights
provided to it herein, in the Indenture or in the Purchase Agreement or granted by law, including
recovery of liquidated or other damages, will be entitled to specific performance of its rights
under this Agreement. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby
agrees to waive in any action for specific performance the defense that a remedy at law would be
adequate.

               13. Successors. This Agreement shall inure to the benefit of and be binding upon the
parties hereto, their respective successors and assigns, including, without the need for an express
assignment or any consent by the Company thereto, subsequent Holders of Securities and the New
Securities, and the indemnified persons referred to in Section 6 hereof. The Company hereby agrees
to extend the benefits of this Agreement to any Holder of Securities and the New Securities, and
any such Holder by taking or holding such Securities and giving reasonable evidence in satisfaction
thereof may specifically enforce the provisions of this Agreement as if an original party hereto
and shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and
provisions of this Agreement and such securities shall be held subject to all the terms of this
Agreement.

-21-

 

               14. Counterparts. This Agreement may be signed in one or more counterparts, each of
which shall constitute an original and all of which together shall constitute one and the same
agreement.

               15. Headings. The section headings used herein are for convenience only and shall not
affect the construction hereof.

               16. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed in the
State of New York. The parties hereto each hereby waive any right to trial by jury in any action,
proceeding or counterclaim arising out of or relating to this Agreement.

               17. Severability. In the event that any one of more of the provisions contained
herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable
in any respect for any reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions hereof shall not be in any way impaired or
affected thereby, it being intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

               18. Securities Held by the Company, etc. Whenever the consent or approval of Holders
of a specified percentage of principal amount of Securities or New Securities is required
hereunder, Securities or New Securities, as applicable, held by the Company or its Affiliates
(other than subsequent Holders of Securities or New Securities if such subsequent Holders are
deemed to be Affiliates solely by reason of their holdings of such Securities or New Securities)
shall not be counted in determining whether such consent or approval was given by the Holders of
such required percentage.

-22-

 

               If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a binding agreement between the Company and the several Initial Purchasers.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	Genentech, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Thomas T. Thomas
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Thomas T. Thomas	 	 
	 

	 	 	 	Title: Treasurer	 	 

The foregoing Agreement is hereby confirmed and
accepted as of the date first above written.

Citigroup Global Markets Inc.

Goldman, Sachs & Co.

By: Citigroup Global Markets Inc.

	 	 	 	 	 
	By:

	 	  /s/ Gerard L. Eastman, Jr.
	 	 
	 

	 	 	 	 
	 

	 	Name: Gerard L. Eastman, Jr.	 	 
	 

	 	Title: Managing Director	 	 

By: Goldman, Sachs & Co.

	 	 	 	 	 
	By:

	 	     /s/ Goldman, Sachs & Co.
	 	 
	 

	 	 	 	 
	 

	 	  (Goldman, Sachs & Co.)	 	 

-23-

 

ANNEX A

               Each broker-dealer that receives new securities for its own account pursuant to the Exchange Offer
must acknowledge that it will deliver a prospectus in connection with any resale of such new
securities. The Letter of Transmittal states that by so acknowledging and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the
meaning of the Act. This prospectus, as it may be amended or supplemented from time to time, may
be used by a broker-dealer in connection with resales of new securities received in exchange for
securities where such securities were acquired by such broker-dealer as a result of market-making
activities or other trading activities. The company has agreed that, starting on the expiration
date and ending on the close of business 90 days after the expiration date, it will make this
prospectus available to any broker-dealer for use in connection with any such resale. See “Plan of
Distribution”.

 

 

ANNEX B

               Each broker-dealer that receives new securities for its own account in exchange for
securities, where such securities were acquired by such broker-dealer as a result of market-making
activities or other trading activities, must acknowledge that it will deliver a prospectus in
connection with any resale of such new securities. See “Plan of Distribution”.

 

 

ANNEX C

PLAN OF DISTRIBUTION

               Each broker-dealer that receives new securities for its own account pursuant to the Exchange
Offer must acknowledge that it will deliver a prospectus in connection with any resale of such new
securities. This prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of new securities received in exchange for securities
where such securities were acquired as a result of market-making activities or other trading
activities. The company has agreed that, starting on the expiration date and ending on the close
of business 90 days after the expiration date, it will make this prospectus, as amended or
supplemented, available to any broker-dealer for use in connection with any such resale. In
addition, until ___, ___, all dealers effecting transactions in the new securities may be
required to deliver a prospectus.

               The company will not receive any proceeds from any sale of new securities by brokers-dealers.
New securities received by broker-dealers for their own account pursuant to the Exchange Offer may
be sold from time to time in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the new securities or a combination of such methods
of resale, at market prices prevailing at the time of resale, at prices related to such prevailing
market prices or negotiated prices. Any such resale may be made directly to purchasers or to or
through brokers or dealers who may receive compensation in the form of commissions or concessions
from any such broker-dealer and/or the purchasers of any such new securities. Any broker-dealer
that resells new securities that were received by it for its own account pursuant to the Exchange
Offer and any broker or dealer that participates in a distribution of such new securities may be
deemed to be an “underwriter” within the meaning of the Act and any profit of any such resale of
new securities and any commissions or concessions received by any such persons may be deemed to be
underwriting compensation under the Act. The Letter of Transmittal states that by acknowledging
that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit
that it is an “underwriter” within the meaning of the Act.

               For a period of 90 days after the expiration date, the company will promptly send additional
copies of this prospectus and any amendment or supplement to this prospectus to any broker-dealer
that requests such documents in the Letter of Transmittal. The company has agreed to pay all
expenses incident to the Exchange Offer (including the expenses of one counsel for the holder of
the securities) other than commissions or concessions of any brokers or dealers and will indemnify
the holders of the securities (including any broker-dealers) against certain liabilities, including
liabilities under the Act.

 

 

ANNEX D

Rider A

PLEASE FILL IN YOUR NAME AND ADDRESS BELOW IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10
ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

	 	 	 
	Name:

	 	                                                            
	Address:

	 	                                                            
	 

	 	                                                            

Rider B

If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the New
Securities in the ordinary course of its business, it is not engaged in, and does not intend to
engage in, a distribution of New Securities and it has no arrangements or understandings with any
person to participate in a distribution of the New Securities. If the undersigned is a
Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchange for New Securities were acquired by it as a result of
market-making activities or other trading activities and acknowledges that it will deliver a
prospectus in connection with any resale of such New Securities; however, by so acknowledging and
by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter”
within the meaning of the Act.

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