Document:

Exhibit 4.2

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made
and entered into as of April 29, 2002 by and between IDEC Pharmaceuticals
Corporation, a Delaware corporation (the “Company”), and Merrill Lynch
& Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Initial
Purchaser”) pursuant to the Purchase Agreement, dated as of April 29, 2002
(the “Purchase Agreement”), between the Company and the Initial
Purchaser.  In order to induce the
Initial Purchaser to enter into the Purchase Agreement, the Company has agreed
to provide the registration rights set forth in this Agreement.  The execution of this Agreement is a
condition to the closing under the Purchase Agreement.

 

The Company agrees with the Initial Purchaser, (i) for the benefit of
the Initial Purchaser and (ii) for the benefit of the beneficial owners
(including the Initial Purchaser) from time to time of the Registrable
Securities (as defined herein)(each of the foregoing a “Holder” and
together the “Holders”), as follows:

 

Section 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 terms shall have the following meanings:

 

“Affiliate” means, with respect to any specified person, an
“affiliate,” as defined in Rule 144, of such person.

 

“Applicable Conversion Price” means, as of any date of
determination, the Applicable Principal Amount per $1,000 principal amount at
maturity of Securities as of such date of determination divided by the
Conversion Rate in effect as of such date of determination or, if no Securities
are then outstanding, the Conversion Rate that would be in effect were
Securities then outstanding.

 

“Applicable Principal Amount” means, as of any date of
determination, (1) with respect to each $1,000 principal amount at maturity of
Securities, the sum of the initial issue price of such Securities ($592.91)
plus accrued original issue discount with respect to such Securities through
such date of determination or (2) if no Securities are then outstanding,
such sum calculated as if such Securities were then outstanding.

 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday
and Friday that is not a day on which banking institutions in The City of New
York are authorized or obligated by law or executive order to close.

 

“Common Stock” means any shares of Common Stock, par value
$0.0005 per share, of the Company and any other shares of common stock as may
constitute “Common Stock” for purposes of the Indenture, including the
Underlying Common Stock.

 

“Company” has the meaning specified in the first paragraph of
this Agreement.

 

 

“Conversion Rate” has the meaning assigned to that term in the
Indenture.

 

“Damages Accrual Period” has the meaning specified in Section
2(e) hereof.

 

“Damages Payment Date” means each April 29 and October 29 in the
case of Securities and the Underlying Common Stock.

 

“Deferral Notice” has the meaning specified in Section 3(i)
hereof.

 

“Deferral Period” has the meaning specified in Section 3(i)
hereof.

 

“Effectiveness Deadline Date” has the meaning specified in
Section 2(a) hereof.

 

“Effectiveness Period” means the period from the Issue Date to a
date when there are no Securities that are Registrable Securities.

 

“Event” has the meaning specified in Section 2(e) hereof.

 

“Event Date” has the meaning specified in Section 2(e) hereof.

 

“Event Termination Date” has the meaning specified in Section
2(e) hereof.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Filing Deadline Date” has the meaning specified in Section 2(a)
hereof.

 

“Holder” has the meaning specified in the second paragraph of
this Agreement.

 

“Indenture” means the Indenture dated as of the date hereof, as
it may be amended from time to time between the Company and the Trustee,
pursuant to which the Securities are being issued.

 

“Initial Purchaser” has the meaning specified in the first paragraph
of this Agreement.

 

“Initial Shelf Registration Statement” has the meaning specified
in Section 2(a) hereof.

 

“Issue Date” means April 29, 2002.

 

“Liquidated Damages Amount” has the meaning specified in Section
2(e) hereof.

 

“Material Event” has the meaning specified in Section 3(i)
hereof.

 

“Notice and Questionnaire” means a written notice delivered to
the Company containing substantially the information called for by the Selling
Securityholder Notice and Questionnaire attached as Annex A to the Offering
Memorandum of the Company dated April 24, 2002 relating to the Securities.

 

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“Notice Holder” means, on any date, any Holder that has
delivered a Notice and Questionnaire to the Company, on or prior to such date.

 

“Prospectus” means the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 415 promulgated under the
Securities Act), as amended or supplemented by any amendment or prospectus
supplement, including post-effective amendments, and all materials incorporated
by reference or explicitly deemed to be incorporated by reference in such
Prospectus.

 

“Purchase Agreement” has the meaning specified in the first
paragraph of this Agreement.

 

“Record Holder” means, with respect to any Damages Payment Date
relating to any Securities or Underlying Common Stock as to which any Liquidated
Damages Amount has accrued, the registered holder of such Securities or
Underlying Common Stock, as the case may be, on the April 14 or October 14, as
the case may be, immediately prior to such Damages Payment Date.

 

“Registrable Securities” means the Securities and the Underlying
Common Stock, until such securities have been converted or exchanged, and, at
all times subsequent to any such conversion or exchange, any securities into or
for which such securities have been converted or exchanged, and any security
issued with respect thereto upon any stock dividend, split, merger or similar
event until, in the case of any such security, the earliest of (i) its
effective registration under the Securities Act and resale in accordance with
the Registration Statement covering it, (ii) expiration of the holding period
that would be applicable thereto under Rule 144(k) were it not held by an
Affiliate of the Company, (iii) its sale to the public pursuant to Rule 144 or
(iv) the date such Securities cease to be outstanding.

 

“Registration Expenses” has the meaning specified in Section 5
hereof.

 

“Registration Statement” means any registration statement of the
Company that covers any of the Registrable Securities pursuant to the
provisions of this Agreement, including the Prospectus, amendments and
supplements to such registration statement, including post-effective
amendments, all exhibits, and all materials incorporated by reference or
explicitly deemed to be incorporated by reference in such registration statement.

 

“Restricted Securities” has the meaning assigned to that term in
Rule 144.

 

“Rule 144” means Rule 144 under the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

 

“Rule 144A” means Rule 144A under the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC.

 

“SEC” means the U.S. Securities and Exchange Commission and any
successor agency.

 

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“Securities” means the Liquid Yield Option Notes due 2032 of the
Company to be purchased pursuant to the Purchase Agreement.

 

“Securities Act” means the Securities Act of 1933, as amended,
and the rules and regulations promulgated by the SEC thereunder.

 

“Shelf Registration Statement” has the meaning specified in
Section 2(a) hereof.

 

“Subsequent Shelf Registration Statement” has the meaning
specified in Section 2(b) hereof.

 

“TIA” means the Trust Indenture Act of 1939, as amended.

 

“Trustee” means J.P. Morgan Trust Company, National Association
(or any successor entity), the Trustee under the Indenture.

 

“Underlying Common Stock” means the Common Stock into which the
Securities are convertible or issued upon any such conversion.

 

Section 2.               Shelf
Registration.  (a)  The
Company shall prepare and file or cause to be prepared and filed with the SEC
as soon as practicable but in any event by the date no later than a date which
is ninety (90) days after the Issue Date (the “Filing Deadline Date”) a
Registration Statement for an offering to be made on a delayed or continuous
basis pursuant to Rule 415 of the Securities Act (a “Shelf Registration
Statement”) registering the resale from time to time by Holders thereof of
all of the Registrable Securities (the “Initial Shelf Registration Statement”).  The Initial Shelf Registration Statement
shall be on Form S-3 or another appropriate form permitting registration of
such Registrable Securities for resale by such Holders in accordance with the
methods of distribution and set forth in the Initial Shelf Registration
Statement provided, that in no event will such method(s) of distribution take
the form of an underwritten offering of the Registrable Securities without the
prior agreement of the Company.  The
Company shall use reasonable efforts to cause the Initial Shelf Registration
Statement to be declared effective under the Securities Act as promptly as
practicable but in any event by the date (the “Effectiveness Deadline Date”)
that is one hundred and eighty (180) days after the Issue Date, and to keep the
Initial Shelf Registration Statement (or any Subsequent Shelf Registration
Statement) continuously effective under the Securities Act (subject to
Section 3(i)) until the expiration of the Effectiveness Period.  At the time the Initial Shelf Registration
Statement is declared effective, each Holder that became a Notice Holder on or
prior to the date five (5) Business Days prior to such time of
effectiveness shall be named as a selling security holder in the Initial Shelf
Registration Statement and the related Prospectus in such a manner as to permit
such Holder to deliver such Prospectus to purchasers of Registrable Securities
in accordance with applicable law (other than non-Blue Sky laws that are not
generally applicable to all such holders). 
None of the Company’s security holders (other than the Holders of
Registrable Securities) shall have the right to include any of the Company’s
securities in the Shelf Registration Statement.

 

(b)           If the Initial Shelf Registration
Statement or any Subsequent Shelf Registration Statement ceases to be effective
for any reason at any time during the Effectiveness Period (other than as
provided in Section 3(i) or because all Registrable Securities registered
thereunder shall have been resold pursuant thereto or shall have otherwise
ceased to be

 

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Registrable Securities), the
Company shall use reasonable efforts to obtain the prompt withdrawal of any
order suspending the effectiveness thereof, and in any event shall within
thirty (30) days of such cessation of effectiveness amend the Shelf
Registration Statement in a manner reasonably expected by the Company to obtain
the withdrawal of the order suspending the effectiveness thereof, or file an
additional Shelf Registration Statement covering all of the Securities that as
of the date of such filing are Registrable Securities (a “Subsequent Shelf
Registration Statement”).  If a
Subsequent Shelf Registration Statement is filed, the Company shall use
reasonable efforts to cause the Subsequent Shelf Registration Statement to
become effective as promptly as is reasonably practicable after such filing or,
if filed during a Deferral Period, after the expiration of such Deferral
Period, and to keep such Registration Statement (or subsequent Shelf
Registration Statement) continuously effective (subject to Section 3(i)) until
the end of the Effectiveness Period.

 

(c)           The Company shall supplement and
amend the Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such
Shelf Registration Statement, if required by the Securities Act or, to the
extent to which the Company does not reasonably object, as reasonably requested
by the Initial Purchaser or by the Trustee on behalf of the registered Holders.

 

(d)           Each Holder of Registrable Securities
agrees that if such Holder wishes to sell Registrable Securities pursuant to a
Shelf Registration Statement and related Prospectus, it will do so only in
accordance with this Section 2(d) and Section 3(i).  Each Holder of Registrable Securities wishing to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus
agrees to deliver a Notice and Questionnaire to the Company at least
five (5) Business Days prior to any intended distribution of Registrable
Securities under the Shelf Registration Statement.  From and after the date the Initial Shelf Registration Statement
is declared effective, the Company shall, as promptly as is reasonably
practicable, after the date a fully completed and legible Notice and
Questionnaire is received by the Company, (i) if required by applicable law,
file with the SEC a post-effective amendment to the Shelf Registration
Statement or prepare and, if required by applicable law, file a supplement to
the related Prospectus or a supplement or amendment to any document
incorporated therein by reference or file any other document required by
applicable law or the SEC so that the Holder delivering such Notice and
Questionnaire is named as a selling security holder in the Shelf Registration
Statement and the related Prospectus in such a manner as to permit such Holder
to deliver such Prospectus to purchasers of the Registrable Securities in
accordance with applicable law (other than non-Blue Sky laws not generally
applicable to all holders of Registrable Securities wishing to sell Registrable
Securities pursuant to the Shelf Registration Statement and related Prospectus)
and, if the Company shall file a post-effective amendment to the Shelf
Registration Statement, use reasonable efforts to cause such post effective
amendment to be declared effective under the Securities Act as promptly as is reasonably
practicable; (ii) provide such Holder copies of any documents filed pursuant to
Section 2(d)(i); and (iii) notify such Holder as promptly as reasonably
practicable after the effectiveness under the Securities Act of any
post-effective amendment filed pursuant to Section 2(d)(i); provided, that if
such Notice and Questionnaire is delivered during a Deferral Period, the
Company shall so inform the Holder delivering such Notice and Questionnaire and
shall take the actions set forth in clauses (i), (ii) and (iii) above upon
expiration of the Deferral Period in accordance with Section 3(i), provided,
further, that if under applicable law the Company has more than one option as
to the type or manner of making any such filing, as set forth in an opinion of nationally
recognized counsel experienced in such

 

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matters delivered by the Holder
to the Company, it will make the required filing or filings in the manner or of
a type that is reasonably expected to result in the earliest availability of
the Prospectus for effecting resales of Registrable Securities.  Notwithstanding anything contained herein to
the contrary, the Company shall be under no obligation to name any Holder that
is not a Notice Holder as a selling security holder in any Registration
Statement or related Prospectus. 
Notwithstanding the provisions of Section 3, any amendments or
supplements to the Registration Statement pursuant to this Section 2(d) that solely
list additional selling shareholders need not be submitted for review by other
Notice Holders or the Initial Purchaser.

 

(e)           The parties hereto agree that the
Holders of Registrable Securities will suffer damages, and that it would not be
feasible to ascertain the extent of such damages with precision, if (i) the
Initial Shelf Registration Statement has not been filed on or prior to the
Filing Deadline Date, (ii) the Initial Shelf Registration Statement has not
been declared effective under the Securities Act on or prior to the Effectiveness
Deadline Date, or (iii) the aggregate duration of Deferral Periods in any
period exceeds the number of days permitted in respect of such period pursuant
to Section 3(i) hereof (each of the events of a type described in any of the
foregoing clauses (i) through (iii) are individually referred to herein as an
“Event,” and the Filing Deadline Date in the case of clause (i), the
Effectiveness Deadline Date in the case of clause (ii), and the date on which
the aggregate duration of Deferral Periods in any period exceeds the number of
days permitted by Section 3(i) hereof in the case of clause (iii), being
referred to herein as an “Event Date”). 
Events shall be deemed to continue until the “Event Termination Date,”
which shall be the following dates with respect to the respective types of
Events: the date the Initial Shelf Registration Statement is filed in the case
of an Event of the type described in clause (i), the date the Initial Shelf
Registration Statement or the Subsequent Shelf Registration Statement is declared
effective under the Securities Act in the case of an Event of the type
described in clause (ii), and termination of the Deferral Period that caused
the limit on the aggregate duration of Deferral Periods in a period set forth
in Section 3(i) to be exceeded in the case of the commencement of an Event of
the type described in clause (iii).

 

Accordingly,
commencing on (and including) any Event Date and ending on (but excluding) the
next date on which there are no Events that have occurred and are continuing (a
“Damages Accrual Period”), the Company agrees to pay, as liquidated
damages and not as a penalty, an amount (the “Liquidated Damages Amount”),
payable on the Damages Payment Dates to Record Holders of then outstanding
Securities that are Registrable Securities or of then outstanding shares of
Underlying Common Stock issued upon conversion of Securities that are
Registrable Securities, as the case may be, accruing, for each portion of such
Damages Accrual Period beginning on and including a Damages Payment Date (or,
in respect of the first time that the Liquidation Damages Amount is to be paid
to Holders on a Damages Payment Date as a result of the occurrence of any
particular Event, from the Event Date) and ending on but excluding the first to
occur of (A) the date of the end of the Damages Accrual Period or (B) the next
Damages Payment Date, at a rate per annum equal to one quarter of one percent
(0.25%) for the first ninety (90) day period from the Event Date, and
thereafter at a rate per annum equal to one half of one percent (0.50%) of the
aggregate Applicable Principal Amount of such Securities and the aggregate
Applicable Conversion Price of such shares of Underlying Common Stock, as the
case may be, in each case determined as of the Business Day immediately
preceding the next Damages Payment Date; provided, that any Liquidated Damages
Amount accrued with respect to any Securities or portion thereof called for
redemption on a redemption date or converted into Underlying Common Stock on a
conversion date prior to the Damages Payment Date, shall, in

 

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any such event, be paid instead
to the Holder who submitted such Securities or portion thereof for redemption
or conversion on the applicable redemption date or conversion date, as the case
may be, on such date (or promptly following the conversion date, in the case of
conversion).  Notwithstanding the
foregoing, no Liquidated Damages Amounts shall accrue as to any Registrable
Security from and after the earlier of (x) the date such security is no longer
a Registrable Security and (y) expiration of the Effectiveness Period.  The rate of accrual of the Liquidated
Damages Amount with respect to any period shall not exceed the rate provided
for in this paragraph notwithstanding the occurrence of multiple concurrent
Events.  Following the cure or waiver of
all Events requiring the payment by the Company of Liquidated Damages Amounts
to the Holders of Registrable Securities pursuant to this Section, the accrual
of Liquidated Damages Amounts will cease (without in any way limiting the
effect of any subsequent Event requiring the payment of Liquidated Damages
Amount by the Company).  For the
avoidance of doubt, with respect to the payment of Liquidated Damages Amounts
payable as a result of an Event occurring after the end of one or more Damage
Accrual Periods, such Liquidated Damages Amounts shall be calculated at a rate
per annum equal to one-quarter of one percent (0.25%) for the first ninety (90)
day period from such Event Date, and thereafter at a rate per annum equal to
one-half of one percent (0.50%), of the aggregate Applicable Principal Amount
of such Securities and the aggregate Applicable Conversion Price of such shares
of Underlying Common Stock, as the case may be, until the next Event
Termination Date on which there are no Events which have occurred and are
continuing.

 

The Trustee
shall be entitled, but shall not be obligated, on behalf of Holders of
Securities or Underlying Common Stock, to seek any available remedy for the
enforcement of this Agreement, including for the payment of any Liquidated
Damages Amount.  Notwithstanding the
foregoing, the parties agree that the sole monetary damages payable for a violation
of the terms of this Agreement with respect to which liquidated damages are
expressly provided shall be such Liquidated Damages Amount.  Nothing shall preclude a Notice Holder or
Holder of Registrable Securities from pursuing or obtaining specific performance
or other equitable relief with respect to this Agreement.

 

All of the
Company’s obligations set forth in this Section 2(e) that are outstanding with
respect to any Registrable Security at the time such security ceases to be a
Registrable Security shall survive until such time as all such obligations with
respect to such security have been satisfied in full (notwithstanding
termination of this Agreement pursuant to Section 8(l)).

 

The parties
hereto agree that the liquidated damages provided for in this Section 2(e)
constitute a reasonable estimate of the damages that may be incurred by Holders
of Registrable Securities by reason of the failure of the Shelf Registration
Statement to be filed or declared effective or available for effecting resales
of Registrable Securities in accordance with the provisions hereof.

 

Section 3.               Registration Procedures.  In connection with the registration
obligations of the Company under Section 2 hereof, the Company shall:

 

(a)           Before filing any Registration
Statement or Prospectus or any amendments or supplements thereto with the SEC,
furnish to the Initial Purchaser copies of all such documents proposed to be
filed and use reasonable efforts to reflect in each such document when

 

7

 

so filed with the SEC such
comments as the Initial Purchaser reasonably shall propose within three (3)
Business Days of the delivery of such copies to the Initial Purchaser.

 

(b)           Prepare and file with the SEC such
amendments and post-effective amendments to each Registration Statement as may
be necessary to keep such Registration Statement continuously effective for the
applicable period specified in Section 2(a); cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then in force) under
the Securities Act; and use reasonable efforts to comply with the provisions of
the Securities Act applicable to it with respect to the disposition of all
securities covered by such Registration Statement during the Effectiveness
Period in accordance with the intended methods of disposition by the sellers
thereof set forth in such Registration Statement as so amended or such
Prospectus as so supplemented.

 

(c)           As promptly as practicable give
notice to the Notice Holders and the Initial Purchaser (i) when any Prospectus,
Prospectus supplement, Registration Statement or post-effective amendment to a
Registration Statement has been filed with the SEC and, with respect to a
Registration Statement or any post-effective amendment, when the same has been
declared effective, (ii) of any request, following the effectiveness of the
Initial Shelf Registration Statement under the Securities Act, by the SEC or
any other federal or state governmental authority for amendments or supplements
to any Registration Statement or related Prospectus or for additional
information, (iii) of the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of any
Registration Statement or the initiation or threatening of any proceedings for
that purpose, (iv) if at any time the representations and warranties of
the Company contained in any agreement entered into pursuant to
Section 3(p) below in connection with the sale of the Restricted
Securities by selling Holder thereof ceases to be true and correct in all
material respects, (v) of the receipt by the Company of any notification
with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, (vi) of the
occurrence of (but not the nature of or details concerning) a Material Event (provided, however, that no notice by the
Company shall be required pursuant to this clause (vi) in the event that the
Company either promptly files a Prospectus supplement to update the Prospectus
or a Form 8-K or other appropriate Exchange Act report that is incorporated by
reference into the Registration Statement, which, in either case, contains the
requisite information with respect to such Material Event that results in such
Registration Statement no longer containing any untrue statement of material
fact or omitting to state a material fact necessary to make the statements
contained therein not misleading) and (vii) of the determination by the
Company that a post-effective amendment to a Registration Statement will be
filed with the SEC, which notice may, at the discretion of the Company (or as
required pursuant to Section 3(i)), state that it constitutes a Deferral
Notice, in which event the provisions of Section 3(i) shall apply.

 

(d)           Use reasonable efforts to obtain the
withdrawal of any order suspending the effectiveness of a Registration
Statement or the lifting of any suspension of the qualification (or exemption
from qualification) of any of the Registrable Securities for sale in any
jurisdiction in which they have been qualified for sale, in either case as
promptly as practicable or, if any such order or suspension is made effective
during any Deferral Period, as promptly as practicable after the expiration of
such Deferral Period.

 

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(e)           If reasonably requested by the Initial
Purchaser or any Notice Holder, as promptly as reasonably practicable
incorporate in a Prospectus supplement or post-effective amendment to a
Registration Statement such information as the Initial Purchaser or such Notice
Holder shall, on the basis of a written opinion of nationally recognized
outside legal counsel experienced in such matters, determine to be required to
be included therein by applicable law and make any filings of such Prospectus
supplement or such post-effective amendment as are required by applicable law;
provided, that the Company shall not be required to take any actions under this
Section 3(e) that are not, in the reasonable opinion of counsel for the
Company, in compliance with applicable law; provided, further, that the Company
may, in accordance with the terms of this Agreement, deliver a Deferral Notice,
in which event the provisions of Section 3(i) shall apply.

 

(f)            As promptly as reasonably
practicable furnish to each Notice Holder and the Initial Purchaser, upon their
written request and without charge, one (1) conformed copy of the Registration
Statement and any amendment thereto, including financial statements but
excluding schedules, all documents incorporated or deemed to be incorporated
therein by reference and all exhibits (unless requested in writing to the
Company by such Notice Holder or the Initial Purchaser, as the case may be).

 

(g)           During the Effectiveness Period
(except during such periods that a Deferral Notice is outstanding and has not
been revoked), deliver to each Notice Holder named as a selling security holder
in the Prospectus or Prospectus supplement (so long as they hold Registrable
Securities) in connection with any sale of Registrable Securities pursuant to a
Registration Statement, without charge, as many copies of the Prospectus or
Prospectuses relating to such Registrable Securities and any amendment or
supplement thereto as such Notice Holder may reasonably request; and the
Company hereby consents (except during such periods that a Deferral Notice is
outstanding and has not been revoked) to the use of such Prospectus or each
amendment or supplement thereto by each Notice Holder in connection with any
offering and sale of the Registrable Securities covered by such Prospectus or
any amendment or supplement thereto in the manner set forth therein.

 

(h)           Subject to Section 3(i), prior to any
public offering of the Registrable Securities pursuant to the Shelf
Registration Statement, use reasonable efforts to register or qualify or
cooperate with the Notice Holders in connection with the registration or
qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any Notice Holder reasonably
requests in writing in the Notice and Questionnaire, it being agreed that no
such registration or qualification will be required unless so requested; prior
to any public offering of the Registrable Securities pursuant to the Shelf
Registration Statement, use reasonable efforts to keep each such registration
or qualification (or exemption therefrom) effective during the Effectiveness
Period in connection with such Notice Holder’s offer and sale of Registrable
Securities pursuant to such registration or qualification (or exemption
therefrom) and do any and all other acts or things necessary to enable the
disposition in such jurisdictions of such Registrable Securities in the manner
set forth in the relevant Registration Statement and the related Prospectus;
provided, that the Company will not be required to (i) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where it would not
otherwise be required to qualify but for this Agreement, (ii) take any
action that would subject it to general service of process in suits or to
taxation in any such jurisdiction where it is not then so subject or

 

9

 

(iii) register or qualify securities
prior to the effective date of any Registration Statement under Section 2
hereof.

 

(i)            Upon (A) the issuance by the SEC of
a stop order suspending the effectiveness of the Shelf Registration Statement
or the initiation of proceedings with respect to the Shelf Registration
Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence
of any event or the existence of any fact (a “Material Event”) as a
result of which the Company shall determine in its reasonable discretion that
any Registration Statement shall contain any 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 not misleading, or any Prospectus
shall contain any 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 (including, in any such case, as a result of the non-availability of
financial statements), or (C) the occurrence or existence of any development,
fact, event, situation or circumstance relating to the Company that, in the
sole discretion of the Company, makes it appropriate to suspend the
availability of the Shelf Registration Statement and the related Prospectus,
(i) in the case of clause (B) above, subject to the next sentence, as promptly
as practicable prepare and file a post-effective amendment to such Registration
Statement or a supplement to the related Prospectus or any document incorporated
therein by reference or file any other required document that would be
incorporated by reference into such Registration Statement and Prospectus so
that such Registration Statement does not contain any 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 not misleading, and such Prospectus
does not contain any 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, as thereafter delivered to the purchasers of the Registrable
Securities being sold thereunder, and, in the case of a post-effective amendment
to a Registration Statement, subject to the next sentence, use reasonable
efforts to cause it to be declared effective as promptly as is reasonably
practicable, and (ii) give notice to the Initial Purchaser pursuant to Section
8(c) hereof and to the Notice Holders named as selling security holders in the
Prospectus and Prospectus supplement (so long as they hold Registrable
Securities) to the address set forth in such Notice Holder’s last Notice and
Questionnaire received by the Company that the availability of the Shelf
Registration Statement is suspended (a “Deferral Notice”) and, upon
receipt of any Deferral Notice, each such Notice Holder agrees not to sell any
Registrable Securities pursuant to the Registration Statement until such Notice
Holder’s receipt of copies of the supplemented or amended Prospectus provided
for in clause (i) above, 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.  The Company will
use reasonable efforts to ensure that the use of the Prospectus may be resumed
(x) in the case of clause (A) above, as promptly as is practicable, (y) in the
case of clause (B) above, as soon as, in the sole judgment of the Company,
public disclosure of such Material Event would not be prejudicial to or
contrary to the interests of the Company or, if necessary to avoid unreasonable
burden or expense, as soon as reasonably practicable thereafter and (z) in the
case of clause (C) above, as soon as, in the sole discretion of the Company,
such suspension is no longer appropriate. 
The period during which the availability of the Registration Statement
and any Prospectus is suspended (the “Deferral Period”) shall, without
the Company incurring any obligation to pay liquidated damages pursuant to
Section 2(e),

 

10

 

not exceed in the aggregate forty five (45)
days in any three (3) month period and one hundred twenty (120) days in
any twelve (12) month period.

 

(j)            If reasonably requested in writing
in connection with a disposition of Registrable Securities pursuant to a
Registration Statement, make reasonably available for inspection during normal
business hours by a representative for the Notice Holders of such Registrable
Securities and any attorneys and accountants retained by such Notice Holders,
all relevant financial and other records, pertinent corporate documents and
properties of the Company and its subsidiaries, and cause the appropriate
executive officers, directors and designated employees of the Company and its
subsidiaries to make reasonably available for inspection during normal business
hours all relevant information reasonably requested by such representative for
the Notice Holders or any such attorneys or accountants in connection with such
disposition, in each case as is customary for similar “due diligence”
examinations; provided, however,
that such persons shall first agree in writing with the Company that any
information that is reasonably designated by the Company in writing as
confidential at the time of delivery of such information shall be kept
confidential by such persons and shall be used solely for the purposes of
exercising rights under this Agreement, unless and until (i) disclosure of such
information is required by court or administrative order or is necessary to
respond to inquiries of regulatory authorities, provided, that such persons
shall as promptly as is reasonably practicable give written notice to the
Company of any request by any such regulatory authority for any such
confidential information of the Company in order to allow the Company to seek
an appropriate protective order, (ii) disclosure of such information is
required by law (including any disclosure requirements pursuant to federal
securities laws in connection with the filing of any Registration Statement or
the use of any Prospectus referred to in this Agreement) and such person
delivers to the Company a written opinion of nationally recognized outside
legal counsel experienced in such matters to that effect prior to any
disclosure of such information, (iii) such information becomes generally
available to the public other than as a result of a disclosure or failure to
safeguard by any such person or (iv) such information becomes available to any
such person from a source other than the Company and such source is not bound
by a confidentiality agreement; and provided further, that the foregoing
inspection and information gathering shall, to the greatest extent possible, be
coordinated on behalf of all the Notice Holders and the other parties entitled
thereto by the counsel referred to in Section 5.

 

(k)           Comply with all applicable rules and
regulations of the SEC and make generally available to its security holders
earning statements (which need not be audited) satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar
rule promulgated under the Securities Act) no later than forty-five (45) days
after the end of any twelve (12) month period (or ninety (90) days after the
end of any twelve (12) month period if such period is a fiscal year) commencing
on the first day of the first fiscal quarter of the Company commencing after
the effective date of a Registration Statement, which statements shall cover
said twelve (12) month period.

 

(l)            Cooperate with each Notice Holder to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities, which certificates shall not bear any restrictive
legends, sold pursuant to a Registration Statement, and cause such Registrable
Securities to be in such denominations as are permitted by the Indenture and
registered in such names as such Notice Holder may request in writing at least
five (5) Business Days prior to any sale of such Registrable Securities.

 

11

 

(m)          Provide a CUSIP number for all
Registrable Securities covered by each Registration Statement not later than
the effective date of such Registration Statement and provide the Trustee for
the Securities and the transfer agent for the Common Stock with printed  certificates for the Registrable Securities
that are in a form eligible for deposit with The Depository Trust Company.

 

(n)           Make a reasonable effort to provide
such information as is required for any filings required to be made with the
National Association of Securities Dealers, Inc.

 

(o)           Upon (i) the filing of the Initial
Shelf Registration Statement and (ii) the effectiveness of the Initial Shelf
Registration Statement, announce the same, in each case by press release or by
posting such information on the Company’s website on the World Wide Web.

 

(p)           Enter into such customary agreements
and take all such other reasonable or necessary actions in connection therewith
(including those reasonably requested by the holders of a majority of the
Registrable Securities being sold), in order to expedite or facilitate
disposition of such Registrable Securities; provided that the Company shall not
be required to take any action not otherwise required hereby in connection with
an underwritten offering without its consent.

 

(q)           Cause the Indenture to be qualified
under the TIA not later than the effective date of any Registration Statement;
and in connection therewith, cooperate with the Trustee to effect such changes
to the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the TIA and execute, and use all reasonable
efforts to cause the Trustee to execute, all documents as may be required to
effect such changes, and all other forms and documents required to be filed
with the SEC to enable the Indenture to be so qualified in a timely manner.

 

Section 4.               Holder’s Obligations.  Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to a Registration
Statement or to receive a Prospectus relating thereto, unless such Holder has
become a Notice Holder and has furnished to the Company the information set
forth in the next sentence. Each Notice Holder agrees promptly to furnish to
the Company in writing all information required to be disclosed in order to
make the information previously furnished to the Company by such Notice Holder
not misleading, any other information regarding such Notice Holder and the
distribution of such Registrable Securities as may be required to be disclosed
in the Registration Statement under applicable law or pursuant to SEC comments
and any information otherwise reasonably required by the Company to comply with
applicable law or regulations. Each Holder further agrees to notify the Company
within ten (10) business days of request, of the amount of Registrable
Securities sold pursuant to the Registration Statement and, in the absence of a
response, the Company may assume that all of the Holder’s Registrable
Securities were so sold.

 

Section 5.               Registration Expenses.  The Company shall pay all fees and expenses
incurred by it in connection with the performance by the Company of its
obligations under Sections 2 and 3 of this Agreement whether or not any of the
Registration Statements are declared effective.  Such fees and expenses shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses
(x) with respect to filings required to be made with the National Association
of Securities Dealers, Inc. and (y) of

 

12

 

compliance with federal and
state securities or Blue Sky laws to the extent such filings or compliance are
required pursuant to this Agreement (including, without limitation, reasonable
fees and disbursements of the counsel specified in the next sentence in
connection with Blue Sky qualifications of the Registrable Securities under the
laws of such jurisdictions as the Notice Holders of a majority of the
Registrable Securities being sold pursuant to a Registration Statement may
designate)), (ii) printing expenses (including, without limitation,
expenses of printing certificates for Registrable Securities in a form eligible
for deposit with The Depository Trust Company), (iii) duplication expenses
relating to copies of any Registration Statement or Prospectus delivered to any
Holders hereunder, (iv) fees and disbursements of counsel for the Company in
connection with the Shelf Registration Statement, (v) reasonable fees and
disbursements of the Trustee and its counsel and of the registrar and transfer
agent for the Common Stock and (vi) all rating agency fees, but excluding
fees of any special accountants retained by the Notice Holders and transfer
taxes, if any, relating to the sale or disposition of Registrable Securities by
a Holder.  In addition, the Company
shall bear or reimburse the Notice Holders for the reasonable fees and
disbursements of one firm of legal counsel for the Holders, which shall
initially be Shearman & Sterling, but which may, upon the written consent
of the Initial Purchaser (which shall not be unreasonably withheld), be another
nationally recognized law firm experienced in securities law matters designated
by the Company.  In addition, the Company
shall pay the internal expenses of the Company (including, without limitation,
all salaries and expenses of officers and employees performing legal or
accounting duties), the expense of any annual audit, the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange on which the same securities of the Company are then listed
and the fees and expenses of any person, including special experts, retained by
the Company.

 

Section 6.               Indemnification; Contribution.  (a)  The Company agrees to indemnify
and hold harmless the Initial Purchaser and each Holder of Registrable
Securities and each person, if any, who controls the Initial Purchaser or any
Holder of Registrable Securities within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, as follows:

 

(i)            against any and all loss, liability,
claim, damage and expense whatsoever, as incurred, arising out of any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement (or any amendment or supplement thereto), including all
documents incorporated therein by reference, or the omission or alleged
omission therefrom of a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, or arising out of any
untrue statement or alleged untrue statement of a material fact included in any
preliminary prospectus or the Prospectus (or any amendment or supplement thereto),
or the omission or alleged omission therefrom of a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading;

 

(ii)           against any and all loss, liability,
claim, damage and expense whatsoever, as incurred, to the extent of the
aggregate amount paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or of
any claim whatsoever based upon any such untrue statement or omission, or any
such alleged untrue statement or omission, provided that (subject to

 

13

 

Section 6(d)
below) any such settlement is effected with the prior written consent of the
Company; and

 

(iii)          against any and all expense
whatsoever, as incurred (including the fees and disbursements of counsel),
reasonably incurred in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue statement or omission, or any such alleged untrue statement or omission,
to the extent that any such expense is not paid under (i) or (ii) above,
subject to Section 6(c);

 

provided, however,
that this indemnity shall not apply to any loss, liability, claim, damage or
expense (including those enumerated in clauses (i), (ii) and (iii) above) to
the extent arising out of any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with written information,
including without limitation the Notice and Questionnaire, furnished to the
Company from or on behalf of the Initial Purchaser, such Holder of Registrable
Securities (which also acknowledges the indemnity provisions herein) or any
person, who controls the Initial Purchaser or any such Holder of Registrable
Securities expressly for use in the Registration Statement (or any amendment
thereto), or any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto); provided, further, that this indemnity shall not apply to
any loss, liability, claim, damage or expense (1) arising from an offer or sale
of Registrable Securities occurring during a Deferral Period, if the applicable
Notice Holder received a Deferral Notice, or (2) if the Holder fails to deliver
at or prior to written confirmation of sale, the most recent prospectus, as
amended or supplemented, and such Prospectus, as amended or supplemented, would
have corrected such untrue statement or omission or alleged untrue statement or
omission of a material fact.

 

(b)           In connection with any Shelf
Registration Statement in which a Holder, including, without limitation, the
Initial Purchaser, of Registrable Securities is participating, in furnishing
information relating to such Holder of Registrable Securities to the Company in
writing expressly for use in such Registration Statement, any preliminary
prospectus, the Prospectus or any amendments or supplements thereto, the
holders of such Registrable Securities agree, severally and not jointly, to
indemnify and hold harmless the Initial Purchaser and each person, if any, who
controls the Initial Purchaser within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act and the Company, and each
person, if any, who controls the Company within the meaning of either such
Section, against any and all loss, liability, claim, damage and expense
described in the indemnity contained in subsection (a) of this Section 6,
as incurred, but only with respect to untrue statements or omissions, or
alleged untrue statements or omissions, made in the Registration Statement (or
any amendment thereto), or any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with
written information received by the Company from or on behalf of such Holder of
Registrable Securities (which also acknowledges the indemnity provisions
herein) or any person, who controls any such Holder of Registrable Securities
expressly for use in the Registration Statement (or any amendment thereto) or
such preliminary prospectus or the Prospectus (or any amendment or supplement
thereto).

 

The Initial
Purchaser agrees to indemnify and hold harmless the Company, the Holders of
Registrable Securities, and each person, if any, who controls the Company or
any Holder of Registrable Securities within the meaning of either Section 15 of
the Securities Act or

 

14

 

Section 20 of the Exchange Act
against any and all loss, liability, claim, damage and expense described in the
indemnity contained in subsection (a) of this Section 6, as incurred, but
only with respect to untrue statements or omissions, or alleged untrue
statements omissions, made in the Registration Statement (or any amendment
thereto), or any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with written information
furnished to the Company by or on behalf of the Initial Purchaser expressly for
use in the Registration Statement (or any amendment thereto) or such
preliminary prospectus or the Prospectus (or any amendment or supplement
thereto).

 

(c)           Each indemnified party shall give
notice as promptly as reasonably practicable to each indemnifying party of any
action or proceeding commenced against it in respect of which indemnity may be
sought hereunder, but failure to so notify an indemnifying party shall not
relieve such indemnifying party from any liability hereunder to the extent it
is not materially prejudiced as a result thereof and in any event shall not
relieve it from any liability which it may have otherwise than on account of
these indemnity provisions.  An
indemnifying party may participate at its own expense in the defense of any
such action; provided, however,
that counsel to the indemnifying party shall not (except with the consent of
the indemnified party) also be counsel to the indemnified party.  In no event shall the indemnifying parties
be liable for fees and expenses of more than one counsel (in addition to any
local counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or
circumstances.  No indemnifying party
shall, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 6 hereof (whether
or not the indemnified parties are actual or potential parties thereto), unless
such settlement, compromise or consent (i) includes an unconditional release of
each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of
any indemnified party.

 

(d)           If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel, such indemnifying party agrees that it shall
be liable for any settlement of the nature contemplated by Section 6(a)(ii)
effected without its written consent if (i) such settlement is entered into more
than 45 days after receipt by such indemnifying party of aforesaid
request, (ii) such indemnifying party shall have received notice of the terms
of such settlement at least 30 days prior to such settlement being entered
into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such
settlement; provided, that an indemnifying party shall not be liable for any
such settlement effected without its consent if such indemnifying party (1)
reimburses such indemnified party in accordance with such request to the extent
it considers such request to be reasonable and (2) provides written notice to
the indemnified party describing any unpaid balance it believes is unreasonable
and the reasons therefor, in each case prior to the date of such settlement.

 

(e)           If the indemnification provided for
in this Section 6 is for any reason unavailable to or insufficient to hold
harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall

 

15

 

contribute to the aggregate amount of such
losses, liabilities, claims, damages and expenses incurred by such indemnified
party, as incurred, in such proportion as is appropriate to reflect the
relative fault of the indemnifying party or parties on the one hand and of the
indemnified party on the other hand in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

 

The relative
fault of the Company on the one hand and the holders of the Registrable
Securities or the Initial Purchaser on the other hand shall be determined by
reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by the Company or by the Holder
of the Registrable Securities or the Initial Purchaser and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

 

The parties
hereto agree that it would not be just and equitable if contribution pursuant
to this Section 6(e) were determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable
considerations referred to above in this Section 6(e).  The aggregate amount of losses, liabilities,
claims, damages, and expenses incurred by an indemnified party and referred to
above in this Section 6(e) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.

 

Notwithstanding
the provisions of this Section 6, no Holder of any Registrable Securities shall
be required to indemnify or contribute, and the Initial Purchaser shall not be
required to contribute, any amount in excess of the amount by which the total
price at which the Registrable Securities sold by such Holder of Registrable
Securities or Initial Purchaser exceeds the amount of any damages that such
Holder of Registrable Securities or Initial Purchaser has otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.

 

No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

 

For purposes
of this Section 6(e), each person, if any, who controls the Initial Purchaser
or any Holder of Registrable Securities within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Initial Purchaser or such Holder, and each person, if any,
who controls the Company within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act shall have the same rights to contribution as
the Company.

 

Section 7.               Information Requirements.  The Company covenants that, if at any time
before the end of the Effectiveness Period the Company is not subject to the
reporting requirements of the Exchange Act, it will cooperate with any Holder
of Registrable Securities and take such further reasonable action as any Holder
of Registrable Securities may reasonably request in writing (including, without
limitation, making such reasonable representations as any such Holder may
reasonably request), all to the extent required from time to time to enable
such

 

16

 

Holder to sell Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144 and Rule 144A and customarily taken in
connection with sales pursuant to such exemptions.  Upon the written request of any Holder of Registrable Securities,
the Company shall deliver to such Holder a written statement as to whether it
has complied with such filing requirements, unless such a statement has been
included in the Company’s most recent annual or quarterly report required to be
filed and filed pursuant to Section 13 or Section 15(d) of the Exchange
Act.  Notwithstanding the foregoing,
nothing in this Section 7 shall be deemed to require the Company to register
any of its securities under any section of the Exchange Act.

 

Section 8.               Miscellaneous.

 

(a)           No Conflicting
Agreements.  The Company is not, as
of the date hereof, a party to, nor shall it, on or after the date of this Agreement,
enter into, any agreement with respect to its securities that conflicts with
the rights granted to the Holders of Registrable Securities in this
Agreement.  The Company represents and
warrants that the rights granted to the Holders of Registrable Securities
hereunder do not conflict with the rights granted to the holders of the
Company’s securities under any other agreements.

 

(b)           Amendments and
Waivers.  The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
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 Holders of a majority of the then outstanding Underlying Common
Stock constituting Registrable Securities (with Holders of Securities deemed to
be the Holders, for purposes of this Section, of the number of outstanding
shares of Underlying Common Stock into which such Securities are or would be
convertible or exchangeable as of the date on which such consent is requested),
except in the case of the Initial Purchaser prior to distribution of the LYONs
to the Holders, then consent of the Initial Purchaser.  Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable Securities whose
Securities are being sold pursuant to a Registration Statement and that does
not directly or indirectly affect the rights of other Holders of Registrable
Securities may be given by Holders of at least a majority of the Registrable
Securities being sold by such Holders pursuant to such Registration Statement;
provided, that the provisions of this sentence may not be amended, modified, or
supplemented except in accordance with the provisions of the immediately
preceding sentence.  Each Holder of
Registrable Securities outstanding at the time of any such amendment,
modification, supplement, waiver or consent or thereafter shall be bound by any
such amendment, modification, supplement, waiver or consent effected pursuant
to this Section 8(b), whether or not any notice, writing or marking indicating
such amendment, modification, supplement, waiver or consent appears on the
Registrable Securities or is delivered to such Holder.

 

(c)           Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery,
by telecopier, by courier guaranteeing overnight delivery or by first-class
mail, return receipt requested, and shall be deemed given (i)when made, if made
by hand delivery, (ii) upon confirmation, if made by telecopier, (iii) one (1)
Business Day after being deposited with such courier, if made by overnight
courier or (iv) on the date indicated on the notice of receipt, if made by
first-class mail, to the parties as follows:

 

17

 

if to a Holder
of Registrable Securities, at the most current address given by such Holder to
the Company in a Notice and Questionnaire or any amendment thereto;

 

if to the
Company, to:

 

IDEC
Pharmaceuticals Corporation

3030 Callan
Drive

San Diego,
California 92121

Attention:  Corporate Secretary

Telecopier
number:  (858) 431-8755

 

with a copy
to:

 

Pillsbury
Winthrop LLP

101 West
Broadway

Suite 1800

San Diego, California 92101

Attention:  David R. Snyder

Telecopier
number:  (619) 236-1995

 

and

 

if to the
Initial Purchaser, to:

 

Merrill Lynch
& Co.,

Merrill Lynch,
Pierce, Fenner & Smith Incorporated

World
Financial Center

North Tower

250 Vesey
Street

New York, New
York 10281

Attention:  Syndicate Department

Facsimile:  (212) 738-1069

 

or to such
other address as such person may have furnished to the other persons identified
in this Section 8(c) in writing in accordance herewith.

 

(d)           Approval of
Holders.  Whenever the consent,
waiver or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, the Registrable Securities held by the
Company or its affiliates (as such term is defined in Rule 405 under the Securities
Act) (other than the Initial Purchaser or subsequent Holders of Registrable
Securities if such subsequent Holders are deemed to be such affiliates solely
by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

 

(e)           Successors and
Assigns.  Any person who purchases
any Registrable Securities from the Initial Purchaser shall be deemed, for
purposes of this Agreement, to be an assignee of the Initial Purchaser.  This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties and shall
inure to the benefit of and be binding upon each Holder of any Registrable
Securities, provided that nothing herein shall be

 

18

 

deemed to
permit any assignment, transfer or other disposition of Registrable Securities
in violation of the terms of the Purchase Agreement.  If any transferee of any Holder shall acquire Registrable
Securities in any manner, whether by operation of law or otherwise, such
Registrable Securities shall be subject to all of the terms of this Agreement
and by taking and holding such Registrable Securities, such person 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 person shall be entitled to
receive the benefits hereof.  The
Initial Purchaser (in its capacity as Initial Purchaser) shall have no
liability or obligation to the Company with respect to any failure by a Holder
of Registrable Securities to comply with, or any breach by such Holder of, any
obligations of such Holder under this Agreement.

 

(f)            Third Party
Beneficiaries.  The Initial Purchaser
(even if the Initial Purchaser is not a Holder of Registrable Securities) shall
be a third party beneficiary to the agreements made hereunder between the
Company, on the one hand, and the Holders, on the other hand, and shall have
the right to enforce such agreements directly to the extent they deem such
enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder.  Each Holder of
Registrable Securities shall be a third party beneficiary to the agreements
made hereunder between the Company, on the one hand, and the Initial Purchaser,
on the other hand, and shall have the right to enforce such agreements directly
to the extent it deems such enforcement necessary or advisable to protect its
rights hereunder.

 

(g)           Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be original and all of which taken
together shall constitute one and the same agreement.

 

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

 

(i)            Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(j)            Severability.  If any term, provision, covenant or
restriction of this Agreement is held to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated thereby, and the parties hereto
shall use their best efforts to find and employ an alternative means to achieve
the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction, it being intended that all of the rights
and privileges of the parties shall be enforceable to the fullest extent
permitted by law.

 

(k)           Entire Agreement.  This Agreement is intended by the parties as
a final expression of their agreement and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and the registration rights
granted by the Company with respect to the Registrable Securities.  Except as provided in the Purchase
Agreement, there are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein, with respect to the
registration rights granted by the Company with respect to the Registrable
Securities.  This

 

19

 

Agreement
supersedes all prior agreements and undertakings among the parties with respect
to such registration rights.

 

(l)            Termination.  This Agreement and the obligations of the
parties hereunder shall terminate upon the expiration of the Effectiveness
Period, except for (i)(A) any liabilities or obligations under Sections 4, 5 or
6 hereof and (B) the obligations to make payments of and provide for liquidated
damages under Section 2(e) hereof to the extent such damages accrue prior to
the end of the Effectiveness Period, each of which shall remain in effect in
accordance with its terms and (ii) the obligations regarding confidential
information contained in Section 3(j).

 

20

 

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

 

	
  IDEC PHARMACEUTICALS CORPORATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ William H.
  Rastetter

  	
   

  	
   

  	
   

  
	
   

  	
  Name: William H. Rastetter, Ph.D.

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Chief Executive Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Confirmed
  and accepted as of the date

  	
   

  	
   

  	
   

  
	
  first above
  written:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MERRILL LYNCH, PIERCE, FENNER & SMITH
  INCORPORATED

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark J. Robinson

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Mark J. Robinson

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Managing Director

  	
   

  	
   

  	
   

  

 

21Exhibit
4.3

 

FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED, THIS SECURITY IS BEING ISSUED WITH ORIGINAL
ISSUE DISCOUNT AND THE ISSUE DATE OF THIS SECURITY IS APRIL APRIL 29, 2002. IN
ADDITION, THIS SECURITY IS SUBJECT TO UNITED STATES FEDERAL INCOME TAX
REGULATIONS GOVERNING CONTINGENT PAYMENT DEBT INSTRUMENTS.  UNDER SUCH REGULATIONS, THE COMPARABLE YIELD
OF THIS SECURITY IS 8.51% (WHICH WILL BE TREATED AS THE YIELD FOR UNITED STATES
FEDERAL INCOME TAX PURPOSES), COMPOUNDED SEMIANNUALLY.  THE YIELD FOR ACCRUING ORIGINAL ISSUE
DISCOUNT FOR NON-TAX PURPOSES IS 1.75%, COMPOUNDED SEMIANNUALLY.

 

THE ISSUER AGREES, AND BY ACCEPTING A BENEFICIAL OWNERSHIP
INTEREST IN THIS SECURITY EACH HOLDER OF THIS SECURITY WILL BE DEEMED TO HAVE
AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES (1) TO TREAT THIS
SECURITY AS A DEBT INSTRUMENT THAT IS SUBJECT TO TREAS. REG. SEC. 1.1275-4 (THE
“CONTINGENT PAYMENT REGULATIONS”), (2) TO TREAT THE FAIR MARKET VALUE OF ANY
STOCK RECEIVED UPON ANY CONVERSION OF THIS SECURITY AS A CONTINGENT PAYMENT FOR
PURPOSES OF THE CONTINGENT PAYMENT REGULATIONS, AND (3) TO BE BOUND BY THE
ISSUER’S DETERMINATION OF THE “COMPARABLE YIELD” AND “PROJECTED PAYMENT
SCHEDULE,” WITHIN THE MEANING OF THE CONTINGENT PAYMENT REGULATIONS, WITH
RESPECT TO THIS SECURITY.  THE ISSUER
AGREES TO PROVIDE PROMPTLY TO THE HOLDER OF THIS SECURITY, UPON WRITTEN
REQUEST, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY,
COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE.  ANY SUCH WRITTEN REQUEST SHOULD BE SENT TO THE ISSUER AT THE
FOLLOWING ADDRESS:  IDEC PHARMACEUTICALS
CORPORATION, 3030 CALLAN ROAD, SAN DIEGO, CA 
92121, ATTENTION: CORPORATE SECRETARY.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.

 

 

THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.  NEITHER THIS SECURITY, THE SHARES OF COMMON
STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.

 

THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO
OFFER, SELL, OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE
“RESALE RESTRICTION TERMINATION DATE”), WHICH IS TWO YEARS AFTER THE LATER OF
THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH IDEC PHARMACEUTICALS
CORPORATION (THE “COMPANY” OR THE “ISSUER”) OR ANY AFFILIATE OF THE COMPANY WAS
THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) ONLY (A) TO
THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES
IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (C) TO AN INSTITUTIONAL “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL “ACCREDITED INVESTOR,” FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S
RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) OR (E)
TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A
CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS
SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE.

 

THE FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY ON
SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE. THE HOLDER OF THIS
SECURITY WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION
WITH REGARD TO THIS SECURITY EXCEPT AS PERMITTED BY THE SECURITIES ACT.

 

2

 

IDEC PHARMACEUTICALS
CORPORATION

Liquid Yield Option(TM) Note due 2032

(Zero Coupon-Senior)

 

	
  No. R-

  	
   

  	
  CUSIP:  [  
  ]

  
	
  Issue Date:
  April 29, 2002

  	
   

  	
  Original Issue
  Discount: $407.09

  
	
  Issue
  Price:  $592.91

  	
   

  	
  (for each $1,000
  Principal Amount at Maturity)

  
	
  (for each $1,000
  Principal Amount at Maturity)

  	
   

  	
   

  

 

IDEC Pharmaceuticals Corporation, a Delaware corporation, promises
to pay to Cede & Co. or registered assigns, the Principal Amount at
Maturity of [        ] DOLLARS ($[          ]) on April 29, 2032.

 

This Security
shall not bear interest except as specified on the other side of this
Security.  Original Issue Discount will
accrue as specified on the other side of this Security.  This Security is convertible as specified on
the other side of this Security.

 

Additional
provisions of this Security are set forth on the other side of this Security.

 

	
  Dated: April 29,
  2002

  	
   

  	
  IDEC
  PHARMACEUTICALS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Trust Company,

  	
   

  	
   

  
	
  National Association,

  	
   

  	
   

  
	
  as Trustee,
  certifies that this

  	
   

  	
   

  
	
  is one of the
  Securities referred

  	
   

  	
   

  
	
  to in the
  within-mentioned Indenture.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorized Officer

  	
   

  	
   

  
					

 

 

[FORM OF REVERSE SIDE OF LYON]

Liquid Yield Option(TM) Note due 2032

(Zero Coupon-Senior)

 

1.               Interest.

 

This Security shall not bear interest, except as specified in this
paragraph or in paragraph 5 hereof.  If
the Principal Amount at Maturity hereof or any portion of such Principal Amount
at Maturity is not paid when due (whether upon acceleration pursuant to Section
6.02 of the Indenture, upon the date set for payment of the Redemption Price
pursuant to paragraph 6 hereof, upon the date set for payment of the Purchase
Price or Change in Control Purchase Price pursuant to paragraph 7 hereof or
upon the Stated Maturity of this Security) or if interest (including semiannual
or contingent interest, if any) due hereon or any portion of such interest is
not paid when due in accordance with paragraph 5 hereof, then in each such case
the overdue amount shall, to the extent permitted by law, bear interest at the
rate of 1.75% per annum, compounded semiannually, which interest shall accrue
from the date such overdue amount was originally due to the date payment of
such amount, including interest thereon, has been made or duly provided
for.  All such interest shall be payable
on demand.  The accrual of such interest
on overdue amounts shall be in lieu of, and not in addition to, the continued
accrual of Original Issue Discount.

 

Original Issue Discount (the difference between the Issue Price
and the Principal Amount at Maturity of the Security), in the period during
which a Security remains outstanding, shall accrue at 1.75% per annum, on a
semiannual bond equivalent basis using a 360-day year composed of twelve 30-day
months, from the Issue Date of this Security.

 

2.               Method of Payment.

 

Subject to the terms and conditions of the Indenture, the Company
will make payments in respect of Redemption Prices, Purchase Prices, Change in
Control Purchase Prices and at Stated Maturity to Holders who surrender
Securities to a Paying Agent to collect such payments in respect of the
Securities.  The Company will pay any
cash amounts in money of the United States that at the time of payment is legal
tender for payment of public and private debts.  However, the Company may make such cash payments by check payable
in such money.

 

3.               Paying Agent, Conversion Agent,
Registrar and Bid Solicitation Agent.

 

Initially, J.P. Morgan Trust Company, National Association, a
national banking association (the “Trustee”), will act as Paying Agent,
Conversion Agent, Registrar and Bid Solicitation Agent.  The Company may appoint and change any
Paying Agent, Conversion Agent, Registrar or co-registrar or Bid Solicitation
Agent without notice, other than notice to the Trustee.  The Company or any of its Subsidiaries or
any of their Affiliates may act as Paying Agent, Conversion Agent, Registrar or
co-registrar.  None of the Company, any
of its Subsidiaries or any of their Affiliates shall act as Bid Solicitation
Agent.

 

2

 

4.               Indenture.

 

The Company issued the Securities under an Indenture dated as of
April 29, 2002 (the “Indenture”), between the Company and the
Trustee.  The terms of the Securities
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as in effect from time to time
(the “TIA”).  Capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Indenture.  The Securities are subject to all such
terms, and Securityholders are referred to the Indenture for a statement of
those terms.

 

The Securities are general unsecured and unsubordinated
obligations of the Company limited to $1,264,950,000 aggregate Principal Amount
at Maturity (subject to Section 2.07 of the Indenture).  The Indenture does not limit other
indebtedness of the Company, secured or unsecured.

 

5.               Contingent Interest.

 

Subject to the accrual and record date provisions specified in
this paragraph 5, the Company shall pay contingent cash interest to the Holders
during any six–month period (a “Contingent Interest Period”) from April
30 to October 29 and from October 30 to April 29 commencing April 30, 2007, if
the average LYON Market Price for the Five-Day Period with respect to such
Contingent Interest Period equals 120% or more of the sum of the Issue Price of
a Security and Original Issue Discount accrued thereon to the day immediately
preceding the first day of the relevant Contingent Interest Period.

 

The amount of contingent interest payable per $1,000 Principal
Amount at Maturity hereof in respect of any Quarterly Period within a
Contingent Interest Period shall equal the greater of (x) Regular Cash
Dividends paid by the Company per share of Common Stock during that Quarterly
Period multiplied by the number of shares of Common Stock into which $1,000
Principal Amount at Maturity hereof is convertible pursuant to paragraph 9
hereof as of the accrual date for such contingent interest or (y) 0.0625%
of the average LYON Market Price of a LYON for the Five-Day Period, provided
that if the Company does not pay cash dividends during a semiannual period, the
Company will pay contingent interest semiannually at a rate of 0.125% of the
average LYON Market Price for the Five-Day Period.

 

Contingent interest, if any, will accrue and be payable to Holders
as of the record date for the related Regular Cash Dividend or, if no Regular
Cash Dividend is paid by the Company during a Quarterly Period, to Holders as
of the 15th day (whether or not a Business Day) preceding the last
day of the relevant Contingent Interest Period.  Such payments shall be paid on the payment date of the related
Regular Cash Dividend or, if no Regular Cash Dividend is paid by the Company
during any Quarterly Period, on the last day of the relevant Contingent
Interest Period.  Original Issue
Discount will continue to accrue at 1.75% per annum whether or not
contingent interest is paid.

 

“Five-Day Period” means, with respect to any Contingent Interest Period, the five
Trading Days ending on the second Trading Day immediately preceding the first
day of such Contingent Interest Period; provided, however, if the Company shall
have declared a Regular Cash Dividend on its Common Stock that is payable
during such Contingent Interest Period but

 

3

 

for which the record date for
determining stockholders entitled thereto precedes the first day of such
Contingent Interest Period, then “Five-Day Period” shall mean, with respect to
such Contingent Interest Period, the five Trading Days ending on the second
Trading Day immediately preceding such record date.

 

“Regular Cash Dividends” means quarterly or other periodic
cash dividends on the Company’s Common Stock as declared by the Company’s Board
of Directors as part of its cash dividend payment practices and that are not
designated by them as extraordinary or special or other nonrecurring dividends.

 

“LYON Market Price” means, as of any date of determination,
the average of the secondary market bid quotations per $1,000 Principal Amount
at Maturity obtained by the Bid Solicitation Agent for $10 million Principal
Amount at Maturity of Securities at approximately 4:00 p.m., New York City
time, on such determination date from three recognized securities dealers in
The City of New York (none of which shall be an Affiliate of the Company)
selected by the Company; provided, however, if (a) at least three
such bids are not obtained by the Bid Solicitation Agent or (b) in the
Company’s reasonable judgment, the bid quotations are not indicative of the
secondary market value of the Securities as of such determination date, then
the LYON Market Price for such determination date shall equal (i) the
Conversion Rate in effect as of such determination date multiplied by
(ii) the average Sale Price of the Common Stock for the five Trading Days
ending on such determination date, appropriately adjusted to take into account
the occurrence, during the period commencing on the first of such Trading Days
during such five Trading Day period and ending on such determination date, of
any event described in Section 10.06, 10.07 or 10.08 (subject to the conditions
set forth in Sections 10.09 and 10.10) of the Indenture.

 

The term “Quarterly Period” shall mean, with respect to any
Contingent Interest Period, any quarterly period within such Contingent
Interest Period extending from April 30 to July 29, from July 30 to October 29,
from October 30 to January 29 or from January 30 to April 29.

 

Upon determination that Holders will be entitled to receive
contingent interest which may become payable during a Contingent Interest
Period, on or prior to the first day of such Contingent Interest Period, the
Company shall promptly notify the Trustee of such determination and shall issue
a press release and publish such information on its web site on the World Wide
Web or through such other public medium as the Company may use at that
time.  The Company shall also notify the
Trustee of the declaration of any Regular Cash Dividends and the related record
and payment dates.

 

6.               Redemption at the Option of the
Company.

 

No sinking fund is provided for the Securities.  The Securities are redeemable for cash as a
whole, at any time, or in part from time to time at the option of the Company
in accordance with the Indenture at the Redemption Prices set forth below,
provided that the Securities are not redeemable prior to April 29, 2007.

 

The table below shows Redemption Prices of a Security per $1,000
Principal Amount at Maturity on the dates shown below and at Stated Maturity,
which prices reflect accrued Original

 

4

 

Issue Discount calculated to each
such date.  The Redemption Price of a
Security redeemed between such dates shall include an additional amount
reflecting the additional Original Issue Discount accrued since the preceding
date in the table but not including the Redemption Date.

 

	
  Redemption Date

  	
   

  	
  (1)

  LYON

  Issue Price

  	
   

  	
  (2)

  Accrued

  Original

  Issue Discount

  	
   

  	
  (3)

  Redemption

  Price

  (1)+(2)

  	
   

  
	
  April
  29, 2007

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  53.97

  	
   

  	
  $

  	
  646.88

  	
   

  
	
  April
  29, 2008

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  65.34

  	
   

  	
  $

  	
  658.25

  	
   

  
	
  April
  29, 2009

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  76.91

  	
   

  	
  $

  	
  669.82

  	
   

  
	
  April
  29, 2010

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  88.68

  	
   

  	
  $

  	
  681.59

  	
   

  
	
  April
  29, 2011

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  100.66

  	
   

  	
  $

  	
  693.57

  	
   

  
	
  April
  29, 2012

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  112.85

  	
   

  	
  $

  	
  705.76

  	
   

  
	
  April
  29, 2013

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  125.26

  	
   

  	
  $

  	
  718.17

  	
   

  
	
  April
  29, 2014

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  137.88

  	
   

  	
  $

  	
  730.79

  	
   

  
	
  April
  29, 2015

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  150.73

  	
   

  	
  $

  	
  743.64

  	
   

  
	
  April
  29, 2016

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  163.80

  	
   

  	
  $

  	
  756.71

  	
   

  
	
  April
  29, 2017

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  177.10

  	
   

  	
  $

  	
  770.01

  	
   

  
	
  April
  29, 2018

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  190.63

  	
   

  	
  $

  	
  783.54

  	
   

  
	
  April
  29, 2019

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  204.40

  	
   

  	
  $

  	
  797.31

  	
   

  
	
  April
  29, 2020

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  218.42

  	
   

  	
  $

  	
  811.33

  	
   

  
	
  April
  29, 2021

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  232.68

  	
   

  	
  $

  	
  825.99

  	
   

  
	
  April
  29, 2022

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  247.19

  	
   

  	
  $

  	
  840.10

  	
   

  
	
  April
  29, 2023

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  261.95

  	
   

  	
  $

  	
  854.86

  	
   

  
	
  April
  29, 2024

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  276.98

  	
   

  	
  $

  	
  869.89

  	
   

  
	
  April
  29, 2025

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  292.27

  	
   

  	
  $

  	
  885.18

  	
   

  
	
  April
  29, 2026

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  307.83

  	
   

  	
  $

  	
  900.74

  	
   

  
	
  April
  29, 2027

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  323.66

  	
   

  	
  $

  	
  916.57

  	
   

  
	
  April
  29, 2028

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  339.77

  	
   

  	
  $

  	
  932.68

  	
   

  
	
  April
  29, 2029

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  356.16

  	
   

  	
  $

  	
  949.07

  	
   

  
	
  April
  29, 2030

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  372.84

  	
   

  	
  $

  	
  965.75

  	
   

  
	
  April
  29, 2031

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  389.82

  	
   

  	
  $

  	
  982.73

  	
   

  
	
  At
  Stated Maturity

  	
   

  	
  $

  	
  592.91

  	
   

  	
  $

  	
  407.09

  	
   

  	
  $

  	
  1,000.00

  	
   

  

 

In addition to the Redemption Price payable with respect to all
Securities or portions thereof to be redeemed as of a Redemption Date, the
Holders of such Securities (or portions thereof) shall be entitled to receive
accrued and unpaid semiannual and contingent interest, if any, with respect
thereto, which interest shall be paid in cash on the Redemption Date.

 

7.               Purchase by the Company at the
Option of the Holder.

 

Subject to the terms and conditions of the Indenture, the Company
shall become obligated to purchase, at the option of the Holder, the Securities
held by such Holder on the following Purchase Dates and at the following
Purchase Prices per $1,000 Principal Amount at Maturity, upon delivery of a
Purchase Notice containing the information set forth in the Indenture, at any
time from the opening of business on the date that is 20 Business Days prior to

 

5

 

such Purchase Date until the close
of business on such Purchase Date and upon delivery of the Securities to the
Paying Agent by the Holder as set forth in the Indenture.

 

	
  Purchase Date

  	
   

  	
  Purchase Price

  	
   

  
	
  April 29, 2005

  	
   

  	
  $

  	
  624.73

  	
   

  
	
  April 29, 2007

  	
   

  	
  $

  	
  646.88

  	
   

  
	
  April 29, 2012

  	
   

  	
  $

  	
  705.76

  	
   

  
	
  April 29, 2017

  	
   

  	
  $

  	
  770.01

  	
   

  

 

The Company may, from time to time, declare additional Purchase
Dates and corresponding Purchase Prices.

 

The Purchase Price (equal to the Issue Price plus accrued Original
Issue Discount to the Purchase Date) may be paid, at the option of the Company,
in cash or by the issuance and delivery of shares of Common Stock of the
Company, or in any combination thereof.

 

At the option of the Holder and subject to the terms and
conditions of the Indenture, the Company shall become obligated to purchase the
Securities held by such Holder no later than 35 Business Days after the
occurrence of a Change in Control of the Company, but in no event prior to the
date on which such Change in Control occurs, on or prior to April 29, 2007 for
a Change in Control Purchase Price equal to the Issue Price plus accrued
Original Issue Discount to the Change in Control Purchase Date, which Change in
Control Purchase Price shall be paid in cash.

 

A third party may make the offer and purchase of the Securities in
lieu of the Company in accordance with the Indenture.

 

In addition to the Purchase Price or Change in Control Purchase
Price, as the case may be, payable with respect to all Securities or portions
thereof to be purchased as of the Purchase Date or the Change in Control
Purchase Date, as the case may be, the Holders of such Securities (or portions
thereof) shall be entitled to receive accrued and unpaid semiannual and
contingent interest, if any, with respect thereto, which shall be paid in cash
promptly following the later of the Purchase Date or the Change in Control
Purchase Date, as the case may be and the time of delivery of such Securities
to the Paying Agent pursuant to the Indenture.

 

Holders have the right to withdraw any Purchase Notice or Change
in Control Purchase Notice, as the case may be, by delivering to the Paying
Agent a written notice of withdrawal in accordance with the provisions of the
Indenture.

 

If cash (and/or securities if permitted under the Indenture)
sufficient to pay the Purchase Price or Change in Control Purchase Price, as
the case may be, of, together with any accrued and unpaid semiannual and
contingent interest with respect to, all Securities or portions thereof to be
purchased as of the Purchase Date or the Change in Control Purchase Date, as
the case may be, is deposited with the Paying Agent on the Business Day
following the Purchase Date or the Change in Control Purchase Date, as the case
may be, Original Issue Discount and interest (including semiannual and
contingent interest), if any, shall cease to accrue on such Securities (or
portions thereof) immediately after such Purchase Date or Change in Control
Purchase Date, as the case may be, and the Holder thereof shall have no other
rights as such (other than the right to receive

 

6

 

the Purchase Price or Change in
Control Purchase Price, as the case may be, and accrued and unpaid semiannual
and contingent interest, if any, upon surrender of such Security).

 

8.               Notice of Redemption.

 

Notice of redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to each Holder of Securities to be
redeemed at the Holder’s registered address. 
If money sufficient to pay the Redemption Price of, and accrued and
unpaid contingent interest, if any, with respect to, all Securities (or
portions thereof) to be redeemed on the Redemption Date is deposited with the
Paying Agent prior to or on the Redemption Date, on such Redemption Date,
Original Issue Discount and interest (including semiannual and contingent
interest), if any, shall cease to accrue on such Securities or portions
thereof.  Securities in denominations
larger than $1,000 of Principal Amount at Maturity may be redeemed in part but
only in integral multiples of $1,000 of Principal Amount at Maturity.

 

9.               Conversion.

 

Subject to the next two succeeding sentences, a Holder of a
Security may convert it into Common Stock of the Company at any time before the
close of business on April 29, 2032.  If
the Security is called for redemption, the Holder may convert it only until the
close of business on the second Business Day immediately preceding the
Redemption Date.  A Security in respect
of which a Holder has delivered a Purchase Notice or Change in Control Purchase
Notice exercising the option of such Holder to require the Company to purchase
such Security may be converted only if such notice of exercise is withdrawn in
accordance with the terms of the Indenture.

 

The initial Conversion Rate is 7.1881 shares of Common Stock per
$1,000 Principal Amount at Maturity, subject to adjustment in certain events
described in the Indenture.  The Company
will deliver cash or a check in lieu of any fractional share of Common Stock.

 

Accrued and unpaid semiannual and contingent interest will not be
paid in cash on Securities that are converted but will be paid in the manner
provided in the following paragraph; provided, however that Securities
surrendered for conversion during the period, in the case of semiannual interest,
from the close of business on any Regular Record Date next preceding any
Interest Payment Date to the opening of business on such Interest Payment Date
or, in the case of contingent interest, from the close of business on any date
on which contingent interest accrues to the opening of business on the date on
which such contingent interest is payable, shall be entitled to receive such
semiannual or contingent interest, as the case may be, payable on such
Securities on the corresponding Interest Payment Date or the date on which such
contingent interest is payable and (except Securities with respect to which the
Company has mailed a notice of redemption) Securities surrendered for
conversion during such periods must be accompanied by payment of an amount equal
to the semiannual or contingent interest with respect thereto that the
registered Holder is to receive.

 

A Holder may convert a portion of a Security if the Principal
Amount at Maturity of such portion is $1,000 or an integral multiple of
$1,000.  No payment or adjustment will
be made for dividends on the Common Stock except as provided in the
Indenture.  On conversion of a

 

7

 

Security, the greater of that
portion of accrued Original Issue Discount or Tax Original Issue Discount
attributable to the period from the Issue Date through the Conversion Date and
(except as provided above) accrued contingent interest with respect to the
converted Security shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the Holder thereof through the delivery
of the Common Stock (together with the cash payment, if any, in lieu of
fractional shares) in exchange for the Security being converted pursuant to the
terms hereof; and the fair market value of such shares of Common Stock
(together with any such cash payment in lieu of fractional shares) shall be
treated as issued, to the extent thereof, first in exchange for the greater of
Original Issue Discount or Tax Original Issue Discount accrued through the
Conversion Date and accrued contingent interest, and the balance, if any, of
such cash and/or the fair market value of such Common Stock (and any such cash
payment in lieu of fractional shares) shall be treated as issued in exchange
for the Issue Price of the Security being converted pursuant to the provisions
hereof.

 

To convert a Security, a Holder must (1) complete and manually
sign the conversion notice below (or complete and manually sign a facsimile of
such notice) and deliver such notice to the Conversion Agent, (2) surrender the
Security to the Conversion Agent, (3) furnish appropriate endorsements and
transfer documents if required by the Conversion Agent, the Company or the
Trustee and (4) pay any transfer or similar tax, if required.

 

The Conversion Rate will be adjusted for dividends or
distributions on Common Stock payable in Common Stock or other Capital Stock;
subdivisions, combinations or certain reclassifications of Common Stock;
distributions to all holders of Common Stock of certain rights to purchase
Common Stock for a period expiring within 60 days of the record date for such
distribution at less than the Sale Price of the Common Stock at the Time of
Determination; and distributions to such holders of assets (including shares of
Capital Stock of a Subsidiary) or debt securities of the Company or certain
rights to purchase securities of the Company (excluding certain cash dividends
or distributions).  However, no
adjustment need be made if Securityholders may participate in the transaction
or in certain other cases.  The Company
from time to time may voluntarily increase the Conversion Rate.

 

If the Company is a party to a consolidation, merger or binding
share exchange or a transfer of all or substantially all of its assets, or upon
certain distributions described in the Indenture, the right to convert a
Security into Common Stock may be changed into a right to convert it into the
kind and amount of securities, cash or other assets of the Company or another
person which the Holder would have received if the Holder had converted its
Securities immediately prior to the transaction.

 

10.         Conversion Arrangement on Call for
Redemption.

 

Any Securities called for redemption, unless surrendered for
conversion before the close of business on the Redemption Date, may be deemed
to be purchased from the Holders of such Securities at an amount not less than
the Redemption Price, by one or more investment bankers or other purchasers who
may agree with the Company to purchase such Securities from the Holders, to
convert them into Common Stock of the Company and to make payment for such
Securities to the Trustee in trust for such Holders.

 

8

 

11.         Defaulted Interest.

 

Except as otherwise specified with respect to the Securities, any
Defaulted Interest on any Security shall forthwith cease to be payable to the
registered Holder thereof on the relevant Regular Record Date or accrual date,
as the case may be, by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company as provided for in Section 11.02 of the
Indenture.

 

12.         Denominations; Transfer; Exchange.

 

The Securities are in fully registered form, without coupons, in
denominations of $1,000 of Principal Amount at Maturity and integral multiples
of $1,000.  A Holder may transfer or
exchange Securities in accordance with the Indenture.  The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes
and fees required by law or permitted by the Indenture.  The Registrar need not register the transfer
or exchange of any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be
redeemed) or any Securities in respect of which a Purchase Notice or Change in
Control Purchase Notice has been given and not withdrawn (except, in the case
of a Security to be purchased in part, the portion of the Security not to be
purchased) or any Securities for a period of 15 days before the mailing of a
notice of redemption of Securities to be redeemed.

 

13.         Persons Deemed Owners.

 

The registered Holder of this Security may be treated as the owner
of this Security for all purposes.

 

14.         Unclaimed Money or Securities.

 

The Trustee and the Paying Agent shall return to the Company upon
written request any money or securities held by them for the payment of any
amount with respect to the Securities that remains unclaimed for two years,
subject to applicable unclaimed property laws. 
After return to the Company, Holders entitled to the money or securities
must look to the Company for payment as general creditors unless an applicable
abandoned property law designates another person.

 

15.         Amendment; Waiver.

 

Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in aggregate Principal Amount at Maturity of the
Securities at the time outstanding and (ii) certain Defaults may be waived with
the written consent of the Holders of a majority in aggregate Principal Amount
at Maturity of the Securities at the time outstanding.  Subject to certain exceptions set forth in
the Indenture, without the consent of any Securityholder, the Company and the
Trustee may amend the Indenture or the Securities to cure any ambiguity,
omission, defect or inconsistency, or to comply with Article 5 or Section 10.14
of the Indenture, to secure the Company’s obligations under this Security or to
add to the Company’s covenants for the benefit of the Securityholders or to
surrender any right or power conferred, or to comply with any

 

9

 

requirement of the SEC in connection
with the qualification of the Indenture under the Trust Indenture Act of 1939
and any amendment thereof, or as necessary in connection with the registration
of the Securities under the Securities Act or to make any change that does not
adversely affect the rights of any Holders.

 

16.         Defaults and Remedies.

 

Under the Indenture, Events of Default include (i) default in
the payment of contingent interest when the same becomes due and payable or
which default continues for 30 days; (ii) default in payment of the Principal
Amount at Maturity, Issue Price plus accrued Original Issue Discount,
Redemption Price, Purchase Price or Change in Control Purchase Price, as the
case may be, in respect of the Securities when the same becomes due and
payable; (iii) failure by the Company to comply with other agreements in the
Indenture or the Securities, subject to notice and lapse of time; (iv) failure
of the Company to make any payment by the end of any applicable grace period
after maturity of Debt having an aggregate outstanding principal amount in
excess of the greater of (a) $10,000,000 or (b) 5% of Consolidated
Net Assets, which default shall have resulted in at least that amount of such
Debt being accelerated, without such Debt having been discharged or such
acceleration having been rescinded or annulled, subject to notice and lapse of
time; (v) failure by the Company to deliver shares of Common Stock or cash
in lieu thereof (together with cash in lieu of fractional shares) when such
Common Stock or cash in lieu of (or cash in lieu of fractional shares) is
required to be delivered following conversion of a Security and continuance of
such default for 10 days; and (vi) certain events of bankruptcy or
insolvency.  If an Event of Default
occurs and is continuing, the Trustee, or the Holders of at least 25% in
aggregate Principal Amount at Maturity of the Securities at the time
outstanding, may declare the Issue Price plus the Original Issue Discount
through the date of such declaration, and any accrued and unpaid interest (including
semiannual interest and contingent interest) if any, through the date of such
declaration, on all the Securities to be due and payable immediately.  Certain events of bankruptcy or insolvency
are Events of Default which will result in the Issue Price plus the Original
Issue Discount on the Securities, and any accrued and unpaid interest
(including semiannual interest and contingent interest) if any, through the
occurrence of such event, becoming due and payable immediately upon the
occurrence of such Events of Default.

 

Securityholders may not enforce the Indenture or the Securities
except as provided in the Indenture. 
The Trustee may refuse to enforce the Indenture or the Securities unless
it receives indemnity or security reasonably satisfactory to it.  Subject to certain limitations, Holders of a
majority in aggregate Principal Amount at Maturity of the Securities at the
time outstanding may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from
Securityholders notice of any continuing Default (except a Default in payment
of amounts specified in clause (i) or (ii) above) if it determines that
withholding notice is in their interests.

 

17.         Trustee Dealings with the Company.

 

Subject to certain limitations imposed by the TIA, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it
were not Trustee.

 

10

 

18.         No Recourse Against Others.

 

A director, officer, employee or stockholder, as such, of the
Company shall not have any liability for any obligations of the Company under
the Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. 
By accepting a Security, each Securityholder waives and releases all such
liability.  The waiver and release are
part of the consideration for the issue of the Securities.

 

19.         Authentication.

 

This Security shall not be valid until an authorized officer of
the Trustee manually signs the Trustee’s Certificate of Authentication on the
other side of this Security.

 

20.         Abbreviations.

 

Customary abbreviations may be used in the name of a
Securityholder 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 Gift to
Minors Act).

 

21.         Original Issue Discount Information
Reporting Requirements.

 

In accordance with the United States Treasury Regulation Section
1.1275-3, a Holder may obtain the projected payment schedule by submitting a
written request for such information to the following representative of the
Company: Corporate Secretary, IDEC Pharmaceuticals Corporation, 3030 Callan
Road, San Diego, CA  92121.

 

22.         GOVERNING LAW.

 

THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND
THIS SECURITY.

 

The Company will furnish to any Securityholder upon written
request and without charge a copy of the Indenture which has in it the text of
this Security in larger type.  Requests
may be made to:

 

IDEC Pharmaceuticals Corporation

3030 Callan Road

San Diego, CA  92121 

Telephone No:  (858) 431-8800

Facsimile No:  (858) 431-8892

Attention:  Treasurer

 

11

 

	
  ASSIGNMENT FORM

  	
   

  	
  CONVERSION
  NOTICE

  
	
   

  	
   

  	
   

  
	
  To assign this Security, fill in the form below:

  	
   

  	
  To convert this Security into Common Stock of the Company, check
  the box:  o

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  I or we assign and transfer this Security to

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To convert only part of this Security, state the Principal
  Amount at Maturity to be converted (which must be $1,000 or an integral
  multiple of $1,000):

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If you want the stock certificate made out in another person’s
  name, fill in the form below:

  
	
   

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  and irrevocably appoint

  	
   

  	
  (Insert other person’s soc. sec. or tax ID no.)

  
	
   

  	
   

  	
   

  
	
                                     agent
  to transfer this Security on the books of the Company.  The agent may substitute another to act
  for him.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print or type other person’s name, address and zip code)

  

 

12

 

	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  (Sign exactly as your name appears on the other side of this
  Security)

  
							

 

13

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