Document:

Exhibit 10.78

 

Confirmation of OTC Warrant Transaction

 

	
  Date:

  	
   

  	
  February 14,
  2006

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Amgen
  Inc. (“Counterparty”)

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Merrill
  Lynch International (“Bank”)

  

 

 

Dear Sir / Madam:

 

The purpose of this letter agreement (this “Confirmation”) is to confirm the
terms and conditions of the above-referenced transaction entered into between
Counterparty and Bank on the
Trade Date specified below (the “Transaction”).
This Confirmation constitutes a “Confirmation” as referred to in the Agreement
specified below.

 

The definitions and provisions contained in the 2000
ISDA Definitions (the “Swap Definitions”)
and the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions” and, together with the Swap Definitions, the “Definitions”), in each case as published
by the International Swaps and Derivatives Association, Inc., are
incorporated into this Confirmation. In the event of any inconsistency between
the Swap Definitions and the Equity Definitions, the Equity Definitions will
govern, and in the event of any inconsistency between the Definitions and this
Confirmation, this Confirmation will govern. References herein to a “Transaction”
shall be deemed to be references to a “Share Option Transaction” for the
purposes of the Equity Definitions and to a “Swap Transaction” for the purposes
of the Swap Definitions. For purposes of this Transaction, “Warrant Style”, “Warrant
Type”, “Number of Warrants” and “Warrant Entitlement” (each as defined below)
shall be used herein as if such terms were referred to as “Option Style”, “Option
Type”, “Number of Options” and “Option Entitlement”, respectively, in the
Definitions.

 

This Confirmation evidences a complete binding
agreement between you and us as to the terms of the Transaction to which this
Confirmation relates. This Confirmation (notwithstanding anything to the
contrary herein), shall be subject to an agreement in the 1992 form of the
ISDA Master Agreement (Multicurrency Cross Border) (the “Master
Agreement” or “Agreement”)
as if we had executed an agreement in such form (but without any Schedule and
with elections specified in the “ISDA Master Agreement” Section of this
Confirmation) on the Trade Date of the first such Transaction between us. In
the event of any inconsistency between the provisions of that Agreement and
this Confirmation, this Confirmation will prevail for the purpose of this
Transaction. The parties hereby agree that the Transaction evidenced by this
Confirmation shall be the only Transaction subject to and governed by the
Agreement.

 

The terms of the particular Transaction to which this
Confirmation relates are as follows:

 

General
Terms:

 

	
  Trade Date:

  	
   

  	
  February 14,
  2006

  
	
   

  	
   

  	
   

  
	
  Warrant
  Style:

  	
   

  	
  European

  
	
   

  	
   

  	
   

  
	
  Warrant
  Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Effective
  Date:

  	
   

  	
  Subject
  to cancellation of the Warrants prior to 5:00 pm (EST) on such date by the
  Counterparty, February 17, 2006

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Counterparty

  

 

 

	
  Buyer:

  	
   

  	
  Bank

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  Shares
  of common stock, $0.0001 par value, of Counterparty (Security Symbol: “AMGN”)

  
	
   

  	
   

  	
   

  
	
  Number
  of Warrants:

  	
   

  	
  15,655,875

  
	
   

  	
   

  	
   

  
	
  Warrant
  Entitlement:

  	
   

  	
  One
  (1) Share per Warrant

  
	
   

  	
   

  	
   

  
	
  Multiple
  Exercise:

  	
   

  	
  Inapplicable

  
	
   

  	
   

  	
   

  
	
  Strike
  Price:

  	
   

  	
  $107.90

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  $155.0
  million, payable by Bank to Counterparty on the Premium Payment Date

  
	
   

  	
   

  	
   

  
	
  Premium
  Payment Date:

  	
   

  	
  Trade
  Date + 3 business days

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  NASDAQ
  National Market

  
	
   

  	
   

  	
   

  
	
  Related
  Exchange(s):

  	
   

  	
  All
  Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures
  for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration
  Time:

  	
   

  	
  11:59
  pm

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
  The
  Valuation Date.

  
	
   

  	
   

  	
   

  
	
  Exercise
  Date:

  	
   

  	
  The
  Expiration Date

  
	
   

  	
   

  	
   

  
	
  Automatic
  Exercise:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Valuation:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Valuation
  Date:

  	
   

  	
  The
  later of (a) May 2, 2011 and (b) the 20th Averaging Date.

  
	
   

  	
   

  	
   

  
	
  Averaging
  Dates:

  	
   

  	
  The
  20 Full Exchange Business Days beginning on and
  including April 4, 2011.

  
	
   

  	
   

  	
   

  
	
  Full
  Exchange Business Day:

  	
   

  	
  A
  Scheduled Trading Day that has a scheduled closing time for its regular
  trading session that is 4 pm (New York City time) or the then standard
  closing time for regular trading on the Exchange and is not a Disrupted Day.

  
	
   

  	
   

  	
   

  
	
  Averaging
  Date Disruption:

  	
   

  	
  Modified
  Postponement.

  
	
   

  	
   

  	
   

  
	
  Settlement
  Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Cash
  Settlement:

  	
   

  	
  Counterparty
  may elect to settle this Transaction by Cash Settlement or Net Physical
  Settlement by providing Bank with notice (“Settlement
  Notice”) in accordance with the Settlement Method Election
  provisions herein and in Section 7.1 of the Equity Definitions. In the
  event that Counterparty does not so notify Bank, this Transaction shall be
  settled pursuant to the Default Settlement Method provision below.

  
	
   

  	
   

  	
   

  
	
  Settlement
  Currency:

  	
   

  	
  USD

  

 

2

 

	
  Settlement
  Price:

  	
   

  	
  The
  arithmetic mean of the closing price of the Shares on the Exchange on each
  Averaging Date.

  
	
   

  	
   

  	
   

  
	
  Cash
  Settlement Payment Date:

  	
   

  	
  Three
  (3) Currency Business Days after the Valuation Date

  
	
   

  	
   

  	
   

  
	
  Settlement
  Method Election:

  	
   

  	
  Applicable
  with respect to Cash Settlement or Net Physical Settlement only.

  
	
   

  	
   

  	
   

  
	
  Electing
  Party:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Settlement
  Method Election Date:

  	
   

  	
  Three
  (3) days prior to the first Averaging Date

  
	
   

  	
   

  	
   

  
	
  Default
  Settlement Method:

  	
   

  	
  Net
  Physical Settlement. In the event that this Transaction is settled by Net
  Physical Settlement, Counterparty shall deliver to Bank on the 1st Full
  Exchange Business Day following the Valuation Date a number of Shares (the “Delivered Shares”) equal to the
  Net Physical Settlement Amount divided by the Settlement Price, provided
  that in the event that the number of Shares calculated comprises any
  fractional Share, only whole Shares shall be delivered and an amount equal to
  the value of such fractional share shall be payable by the Counterparty to
  Bank in lieu of such fractional Share.

  
	
   

  	
   

  	
   

  
	
  Net
  Physical Settlement Amount:

  	
   

  	
  With
  respect to the Valuation Date, an amount, as calculated by the Calculation
  Agent, equal to the Number of Warrants multiplied by the Strike Price
  Differential.

  
	
   

  	
   

  	
   

  
	
  Strike
  Price Differential:

  	
   

  	
  In
  respect of the Valuation Date, an amount equal to the greater of: (i) the
  excess, if any, of the Settlement Price over the Strike Price, and (ii) zero.

  
	
   

  	
   

  	
   

  
	
  Net
  Physical Settlement

  	
   

  	
   

  
	
  Adjustment:

  	
   

  	
  Subject
  to the Maximum Deliverable Share Amount, if Bank receives any Delivered
  Shares under this Transaction that cannot be freely sold under the Securities
  Act (as defined below) or are subject to any legend restricting
  transferability:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) Bank
  shall sell the Delivered Shares in a commercially reasonable manner until the
  amount received by Bank for the sale of the Shares (the “Proceeds
  Amount”) is equal to the Net
  Physical Settlement Amount. Any remaining Delivered Shares shall be returned
  to Counterparty.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) If
  the Proceeds Amount is less than the Net Physical Settlement Amount,
  Counterparty shall promptly deliver upon notice from Bank additional Shares
  to Bank until the dollar amount from the sale of such Shares by Bank equals the
  difference between the Net Physical Settlement Amount and the Proceeds
  Amount. In no event shall Counterparty be required to deliver to Bank a
  number of Shares greater than the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
  Conditions
  to Net

  	
   

  	
   

  
	
  Physical
  Settlement:

  	
   

  	
  (i) If,
  in connection with or following delivery of Shares hereunder, Bank notifies
  the Counterparty that the Bank has reasonably determined after advice from
  counsel that there is a substantial material risk that such Shares are
  subject to restrictions on transfer in the hands of Bank pursuant to the rules and
  regulations under the Securities Act of 1933, as amended (the “Securities Act”), Counterparty
  shall promptly make available to Bank an effective registration statement
  (the “Registration Statement”)
  filed pursuant to Rule 415 under the Securities Act and such
  prospectuses as Bank may reasonably request to comply with the
  applicable prospectus delivery requirements (the “Prospectus”)
  for the 

  

 

3

 

	
   

  	
   

  	
  resale
  by Bank of such number of Shares as Bank shall reasonably specify in
  accordance with this paragraph, such Registration Statement to be effective
  and Prospectus to be current until the earliest of the date on which (a) all
  Delivered Shares have been sold by Bank or returned to Counterparty pursuant
  to the Net Physical Settlement Adjustment provision above, (b) Bank has
  advised Counterparty that it no longer requires that such Registration
  Statement be effective, (c) all remaining Delivered Shares could be sold
  by Bank without registration pursuant to Rule 144 promulgated under the
  Securities Act (the “Registration Period”)
  or (d) Counterparty has provided a legal opinion in form and
  substance satisfactory to Bank (with customary assumptions and exceptions)
  that the Shares issuable upon exercise of these Warrants will be freely
  tradable under the Securities Act upon delivery to Bank and not subject to
  any legend restricting transferability. It is understood that the
  Registration Statement and Prospectus may cover a number of Shares equal
  to the aggregate number of Shares (if any) reasonably estimated by Bank to be
  potentially deliverable by Counterparty in connection with Net Physical
  Settlement hereunder (not to exceed the Maximum Deliverable Share Amount);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notwithstanding
  the foregoing, the Registration Statement and Prospectus provided for by this
  paragraph shall be subject to the same suspension of sales during “blackout
  dates” as provided in the following paragraph (ii).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) In
  the event that Bank notifies the Counterparty that the Bank has reasonably
  determined after advice from counsel that there is a substantial material
  risk that the Shares are subject to restrictions on transfer in the hands of
  Bank pursuant to the rules and regulations under the Securities Act,
  Counterparty will enter into a registration rights agreement with Bank in form and
  substance reasonably acceptable to Bank, which agreement will contain among
  other things, customary representations and warranties and indemnification,
  restrictions on sales during “blackout dates” as provided for in the
  registration rights agreement (the “Registration Rights
  Agreement”) entered into between Counterparty and the Initial
  Purchaser in connection with Counterparty’s 0.125% Convertible Senior Notes
  due 2011 (the “Convertible Notes”),
  and other rights relating to the registration of a number of Shares equal to
  the number of Delivered Shares and others Shares deliverable hereunder up to
  the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii) Counterparty
  shall promptly pay to Bank a $0.04 per Share fee with all Shares delivered in
  connection with Net Physical Settlement pursuant to a Registration Statement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv) In
  the event Counterparty fails to comply with any of the conditions set forth
  in “Conditions to Net Physical Settlement” herein,
  Counterparty shall settle the Transaction through Cash Settlement; provided,
  however, that notwithstanding the foregoing, if either (a) Counterparty
  does not provide for the sale of the Shares under the Registration Statement
  as provided in the Registration Rights Agreement, (b) some Shares cannot
  be registered under the Registration Statement due to Rule 415(a)(4) under
  the Securities Act, or (c) some or all of the Delivered Shares cannot be
  used to close out stock loans in the shares of Counterparty entered into to
  establish or maintain short positions by Bank in connection with this
  Transaction without a prospectus being required by applicable law to be
  delivered to such lender, then Counterparty may deliver unregistered or
  registered Shares. In the case of clauses (a) or (b) above, the
  value of any unregistered Shares so delivered shall be discounted to reflect
  their market value (calculated in a commercially reasonable manner). In the
  case of clause (c) above, the value of any such Delivered Shares shall
  reflect the cost 

  

 

4

 

	
   

  	
   

  	
  (calculated
  in a commercially reasonable manner) to Bank of trading Shares in order to
  close out its hedge position if any, in all cases for purposes of calculating
  the Delivered Shares. In no event shall Counterparty be required to top-up
  the delivery in cash.

  
	
   

  	
   

  	
   

  
	
  Limitations
  on Net Physical

  	
   

  	
   

  
	
  Settlement
  by Counterparty:

  	
   

  	
  Notwithstanding
  anything herein or in the Agreement to the contrary, the number of Shares
  that may be delivered at settlement by Counterparty shall not exceed
  19,569,844 at any time (“Maximum Deliverable
  Share Amount”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Counterparty
  represents and warrants that the number of Available Shares as of the Trade
  Date is greater than the Maximum Deliverable Share Amount. Counterparty
  covenants and agrees that Counterparty shall not take any action of corporate
  governance or otherwise to reduce the number of Available Shares below the
  Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For
  this purpose, “Available Shares”
  means the number of Shares Counterparty currently has authorized (but not
  issued and outstanding) less the maximum number of Shares that may be
  required to be issued by Counterparty in connection with stock options,
  convertibles, and other commitments of Counterparty that may require the
  issuance or delivery of Shares in connection therewith.

  
	
   

  	
   

  	
   

  
	
  Dividends:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Extraordinary
  Dividends:

  	
   

  	
  Any
  and all dividends paid by Counterparty.

  
	
   

  	
   

  	
   

  
	
  Share
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method
  of Adjustment:

  	
   

  	
  Calculation
  Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Extraordinary
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consequences
  of Merger Events:

  	
   

  	
  (a) Share-for-Share:
  Cancellation and Payment (Calculation Agent Determination)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) Share-for-Other:
  Cancellation and Payment (Calculation Agent Determination)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) Share-for-Combined:
  Cancellation and Payment (Calculation Agent Determination)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With
  respect to any Extraordinary Events hereunder, upon the occurrence of
  Cancellation and Payment in whole or in part, the parties agree that the
  amount to be paid, in accordance with the Equity Definitions, shall
  constitute a Transaction Early Termination Amount, subject to satisfaction by
  the payment or delivery of Shares or cash as set forth in the Early
  Termination section below.

  
	
   

  	
   

  	
   

  
	
  Tender
  Offer:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Nationalization,
  Insolvency

  	
   

  	
   

  
	
  or
  Delisting:

  	
   

  	
  Cancellation
  and Payment (Calculation Agent Determination) (subject to satisfaction by
  payment or delivery of Shares or cash as set forth in “Early Termination”
  below)

  

 

5

 

	
  Determining
  Party:

  	
   

  	
  Buyer

  
	
   

  	
   

  	
   

  
	
  Additional
  Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change
  in Law:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Failure
  to Deliver:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Insolvency
  Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging
  Disruption Event:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Increased
  Cost of Hedging:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging
  Party:

  	
   

  	
  Bank

  
	
   

  	
   

  	
   

  
	
  Loss
  of Stock Borrow:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Increased
  Cost of Stock Borrow:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Determining
  Party:

  	
   

  	
  Bank

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements
  and

  	
   

  	
   

  
	
  Acknowledgments
  Regarding

  	
   

  	
   

  
	
  Hedging
  Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other
  Provisions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Additional
  Agreements:

  	
   

  	
  If due to the
  occurrence of an Extraordinary Event or otherwise Counterparty would be
  obligated to pay cash to Bank pursuant to the terms of this Agreement for any
  reason without having had the right (other than pursuant to this paragraph)
  to elect to deliver Shares in satisfaction of such payment obligation, then
  Counterparty may elect to deliver to Bank a number of Shares (whether
  registered or unregistered) having a cash value equal to the amount of such
  payment obligation (such number of Shares to be delivered to be determined by
  the Calculation Agent acting in a commercially reasonable manner to determine
  the number of Shares that could be sold by Bank over a reasonable period of
  time to realize the cash equivalent of such payment obligation taking into
  account any applicable discount (determined in a commercially reasonable
  manner) to reflect any restrictions on transfer as well as the market value
  of the Shares). Further, if Counterparty is delivering Shares as a result of
  a Merger Event, the Settlement Date will be immediately prior to the
  effective time of the Merger Event and the Shares will be deemed delivered at
  such time such that Bank will be a holder of the Shares prior to such
  effective time. Settlement relating to any delivery of Shares pursuant to
  this paragraph shall occur within a reasonable period of time. The number of
  Shares delivered pursuant to this paragraph shall not exceed the Maximum
  Deliverable Share Amount and shall be subject to the provisions under “Early
  Termination” hereof regarding Proceeds Amount.

  

 

6

 

	
  Early
  Termination:

  	
   

  	
  Notwithstanding
  any provision to the contrary, upon the designation of an Early Termination
  Date hereunder, a party’s payment obligation in respect of this Transaction
  only as determined in accordance with Second Method and Market Quotation (the
  “Transaction Early Termination Amount”)
  may, at the option of Counterparty, be satisfied by the party owing such
  amount by the delivery of a number of Shares equal to the Transaction Early
  Termination Amount divided  by the Termination Price (“Early Termination Stock Settlement”);
  provided, however, that Counterparty must notify Bank of its
  election of Early Termination Stock Settlement by the close of business on
  the day that is two Exchange Business Days following the day that the notice
  designating the Early Termination Date is effective.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Termination Price” means the
  closing price per Share on the Exchange on the Early Termination Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A
  number of Shares calculated as being due in respect of any Early Termination
  Stock Settlement will be deliverable on the third Exchange Business Day
  following the date that notice pursuant to Section 6(d)(i) of the
  Agreement specifying the number of Shares deliverable is effective. Section 6(d)(i) of
  the Agreement is hereby amended by adding the following words after the word “paid”
  in the fifth line thereof: “or any delivery is to be made, as applicable.”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On
  or prior to the Early Termination Date (if Early Termination Stock Settlement
  is elected), if so requested by the Bank, Counterparty shall enter into a
  registration rights agreement with Bank in form and substance reasonably
  acceptable to Bank which agreement will contain among other things, customary
  representations and warranties and indemnification, restrictions on sales during
  “blackout dates” as provided for in the Registration Rights Agreement and
  shall satisfy the conditions contained therein and Counterparty shall file
  and diligently pursue to effectiveness a Registration Statement pursuant to Rule 415
  under the Securities Act. If and when such Registration Statement shall have
  been declared effective by the Securities and Exchange Commission,
  Counterparty shall have made available to Bank such Prospectuses as Bank may reasonably
  request to comply with the applicable prospectus delivery requirements for
  the resale by Bank of such number of Shares as Bank shall specify (or, if
  greater, the number of Shares that Counterparty shall specify). Such
  Registration Statement shall be effective and Prospectus shall be current until
  the earliest of the date on which (i) all Shares delivered by
  Counterparty in connection with an Early Termination Date, (ii) Bank has
  advised Counterparty that it no longer requires that such Registration
  Statement be effective or (iii) all remaining Shares could be sold by
  Bank without registration pursuant to Rule 144 promulgated under the
  Securities Act (the “Termination Registration
  Period”). It is understood that the Registration Statement and
  Prospectus will cover a number of Shares equal to the number of Shares plus
  the aggregate number of Shares (if any) reasonably estimated by Bank to be
  potentially deliverable by Counterparty in connection with Early Termination
  Stock Settlement hereunder, but in no event exceeding the Maximum Deliverable
  Share Amount. On each day during the Registration Period Counterparty shall
  represent that each of its filings under the Securities Act, the Securities
  Exchange Act of 1934, as amended (the “Exchange
  Act”), or other applicable securities laws that are required
  to be filed have been filed and that, as of the respective dates thereof and
  as of the date of this representation, there is no misstatement of a material
  fact contained therein or omission of a material fact required to be stated
  therein or necessary to make the statements therein not misleading.

  

 

7

 

	
   

  	
   

  	
  If
  Counterparty does not deliver Shares subject to an effective Registration
  Statement as set forth above, Counterparty may deliver unregistered
  Shares in an amount determined by Bank based upon Bank’s commercially
  reasonable judgment of the market value of such Shares. In no event shall
  Counterparty be required to deliver to Bank a number of Shares greater than
  the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If
  Bank receives Shares in connection with an Early Termination Stock Settlement
  that cannot be freely sold under the Securities Act or that are subject to
  any legend restricting transferability, Bank shall sell such Shares in a
  commercially reasonable manner until the amount received by Bank for the sale
  of such Shares (net of transaction costs, calculated in a commercially
  reasonable manner) (the “Proceeds Amount”)
  is equal to the Transaction Early Termination Amount. Any remaining Shares
  shall be returned to Counterparty. If the Proceeds Amount is less than the
  Transaction Early Termination Amount, Counterparty shall promptly deliver
  additional Shares to Bank upon request until the dollar amount from the sale
  of such additional Shares by Bank (net of transaction costs, calculated in a
  commercially reasonable manner) equals the difference between the Transaction
  Early Termination Amount and the Proceeds Amount. In no event shall
  Counterparty be required to deliver to Bank a number of Shares greater than
  the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
  Compliance
  With Securities Laws:

  	
   

  	
  Each
  party represents and agrees that it has complied, and will comply, in
  connection with this Transaction and all related or contemporaneous sales and
  purchases of Shares, with the applicable provisions of the Securities Act,
  the Exchange Act, and the rules and regulations thereunder, including,
  without limitation, Rule 10b-5 and 13e and Regulation M under the
  Exchange Act, provided that each party shall be entitled to rely
  conclusively on any information communicated by the other party concerning
  such other party’s market activities and provided  further that
  Counterparty shall have no liability as a result of a breach of this
  representation due to Bank’s gross negligence or willful misconduct.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each
  party further represents that if such party (“X”)
  purchases any Shares from the other party pursuant to this Transaction, such
  purchase(s) will comply in all material respects with (i) all laws and
  regulations applicable to X, and (ii) all contractual obligations of X.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each
  party acknowledges that the offer and sale of the Transaction to it is
  intended to be exempt from registration under the Securities Act by virtue of
  Section 4(2) thereof. Accordingly, Counterparty represents and warrants
  to Bank that (i) it has the financial ability to bear the economic risk
  of its investment in the Transaction and is able to bear a total loss of its
  investment, (ii) it is an “accredited investor” as that term is defined
  in Regulation D as promulgated under the Securities Act and (iii) the
  disposition of the Transaction is restricted under this Confirmation, the
  Securities Act and state securities laws. On or prior to the Trade Date,
  Counterparty shall deliver to Bank a resolution of Counterparty’s board of
  directors authorizing the Transaction and such other certificate or
  certificates as Bank shall reasonably request.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Counterparty
  represents and acknowledges that as of the date hereof:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) No
  consent, approval, authorization, or order of, or filing with, any
  governmental agency or body or any court is required in connection with the
  execution, delivery or performance by Company of this Confirmation, except
  such as have been obtained or made and such as may be required under the
  Securities Act or state securities laws;

  

 

8

 

	
   

  	
   

  	
  (b) the
  number of Available Shares on the date hereof is greater than the Maximum
  Deliverable Share Amount; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) without
  limiting the generality of Section 13.1 of the Equity Definitions, Bank
  is not making any representations or warranties with respect to the treatment
  of the Transaction under FASB Statements 149 or 150, EITF Issue No. 00-19
  (or any successor issue statements) or under FASB’s Liabilities & Equity
  Project.

  
	
   

  	
   

  	
   

  
	
  Account
  Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Account
  for payments

  	
   

  	
   

  
	
  to
  Counterparty:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Account for
  payment to Bank:

  	
   

  	
  Chase Manhattan
  Bank, New York

  
	
   

  	
   

  	
  ABA#:
  021-000-021

  
	
   

  	
   

  	
  FAO: ML Equity
  Derivatives

  
	
   

  	
   

  	
  A/C: 066213118

  
	
   

  	
   

  	
   

  
	
  Agreement
  Regarding Shares:

  	
   

  	
  Counterparty
  agrees that, in respect of any Shares delivered to Bank, such Shares shall
  be, upon such delivery, duly and validly authorized, issued and outstanding,
  fully paid and non-assessable and subject to no adverse claims of any other party.
  The issuance of such Shares does not and will not require the consent,
  approval, authorization, registration or qualification of any government
  authority, except such as shall have been obtained on or before the delivery
  date of any Shares or in connection with any Registration Statement filed
  with respect to any Shares.

  
	
   

  	
   

  	
   

  
	
  Covenant
  Regarding Shares:

  	
   

  	
  Counterparty
  covenants that it shall not take any action to decrease the number of
  Available Shares below the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
  Bankruptcy
  Rights:

  	
   

  	
  In
  the event of Counterparty’s bankruptcy, Bank’s rights in connection with this
  Transaction shall not exceed those rights held by common shareholders. For
  the avoidance of doubt, the parties acknowledge and agree that Bank’s rights
  with respect to any other claim arising from this Transaction prior to
  Counterparty’s bankruptcy shall remain in full force and effect and shall not
  be otherwise abridged or modified in connection herewith.

  
	
   

  	
   

  	
   

  
	
  Set-Off:

  	
   

  	
  Each
  party waives any and all rights it may have to set-off, whether arising
  under any agreement, applicable law or otherwise.

  
	
   

  	
   

  	
   

  
	
  Collateral:

  	
   

  	
  None.

  
	
   

  	
   

  	
   

  
	
  Transfer:

  	
   

  	
  Counterparty
  may transfer its rights and delegate its obligations under this
  Transaction in accordance with Section 7 of the Master Agreement. Bank may assign
  its rights and delegate its obligations hereunder, in whole or in part, to
  any other person (an “Assignee”)
  without the prior consent of the Counterparty, effective (the “Transfer Effective Date”) upon
  delivery to Counterparty of an executed acceptance and assumption by the
  Assignee (an “Assumption”)
  of the transferred obligations of Bank under this Transaction (the “Transferred Obligations”).

  

 

9

 

	
  Regulation:

  	
   

  	
  Bank
  is regulated by The Securities and Futures Authority Limited and has entered
  into this Transaction as principal.

  
	
   

  	
   

  	
   

  
	
  Indemnity:

  	
   

  	
  Each
  party agrees to indemnify the other party, its Affiliates and their
  respective directors, officers, agents and controlling parties (each such
  person being an “Indemnified Party”)
  from and against any and all losses, claims, damages and liabilities, joint
  and several, to which such Indemnified Party may become subject because
  of a breach of any representation or covenant hereunder, in the Agreement or
  any other Agreement relating to the Agreement or Transaction and will
  reimburse any Indemnified Party for all reasonable expenses (including
  reasonable legal fees and expenses) as they are incurred in connection with
  the investigation of, preparation for, or defense of, any pending or
  threatened claim or any action or proceeding arising therefrom, whether or
  not such Indemnified Party is a party thereto.

  

 

Additional
Agreements, Representations and Covenants of Counterparty, Etc.:

 

(a)                                  Counterparty
hereby represents and warrants to Bank, on each day from the Trade Date to and
including the earlier of (i) February 17, 2006 and (ii) the date
by which Bank is able to initially complete a hedge of its position created by
this Transaction, that:

 

(1)                                  it
will not, and will not permit any person or entity subject to its control to,
bid for or purchase Shares during such period except as disclosed in the
Offering Memorandum relating to the Convertible Notes; and

 

(2)                                  it
has publicly disclosed all material information necessary for it to be able to
purchase or sell Shares in compliance with applicable federal securities laws
and that it has publicly disclosed all material information with respect to its
condition (financial or otherwise).

 

(b)         The
parties hereby agree that all documentation with respect to this Transaction is
intended to qualify this Transaction as an equity instrument for purposes of
EITF 00-19.

 

(c)          No
collateral shall be required by either party for any reason in connection with
this Transaction.

 

(d)         Bank
shall not be entitled to exercise any Warrant hereunder as provided below, and
Automatic Exercise shall not apply with respect to any Warrant, to the extent
the exercise of such Warrant would cause Bank to become, directly or indirectly,
the beneficial owner of more than 8.0 percent of the class of the
Counterparty’s equity securities that is comprised of the Shares for purposes
of Section 13 of the Exchange Act (in such case, an “Excess
Share Owner”).

 

Bank
shall provide prior notice to Counterparty if the exercise of any Warrant
hereunder would cause Bank to become directly or indirectly, an Excess Share
Owner; provided that the failure of Bank to provide such notice shall
not alter the effectiveness of the provisions set forth in the preceding
sentence and any purported exercise in violation of such provisions shall be
void and have no effect.

 

If
Bank is not entitled to exercise any Warrant because such exercise would cause
Bank to become, directly or indirectly, an Excess Share Owner and Bank
thereafter disposes of Shares owned by it or any action is taken that would
then permit Bank to exercise such Warrant without such exercise causing it to
become, directly or indirectly, an Excess Share Owner, then Bank shall provide
notice of the taking of such action to Counterparty and such Warrant shall then
become exercisable by Bank to the extent such Warrant is otherwise or had
otherwise become exercisable hereunder. In such event, the Expiration Date with
respect to such Warrant shall be the date on which Counterparty receives such
notice from Bank, and the related Settlement Date shall be as soon as
reasonably practicable after receipt of such notice but no more than three (3) Exchange
Business Days thereafter (but in no event shall the Settlement Date occur prior
to the date on which it would have otherwise occurred but for the 

 

10

 

provisions
of this paragraph (d)); provided that the related Net Physical
Settlement Amount shall be the same as the Net Physical Settlement Amount but
for the provisions of this paragraph (d).  In addition, within 30 calendar days of the
Settlement Date, Counterparty shall use its reasonable efforts to refrain from
activities that could reasonably be expected to result in Bank’s ownership of
Shares exceeding 10% of all issued and outstanding Shares.

 

(e)          Bank
hereby agrees that from the Trade Date through to and including the Settlement
Date, it will:

 

(1)                                  use
its reasonable efforts to not become an “affiliate” of Counterparty as such
term is defined in Regulation 144(a)(1) under the Securities Act; and

 

(2)                                  not
vote any Shares held or received pursuant hereto, as to which it has the right
to exercise a vote.

 

ISDA
Master Agreement

 

With respect to the Agreement, Bank and Counterparty
each agree as follows:

 

Specified Entities:

 

(i) in
relation to Bank, for the purposes of:

 

Section 5(a)(v):               not applicable

Section 5(a)(vi):            not
applicable

Section 5(a)(vii):         not
applicable

Section 5(b)(iv):           not
applicable

 

and (ii) in relation to Counterparty, for the purposes of:

 

Section 5(a)(v):               not applicable

Section 5(a)(vi):            not
applicable

Section 5(a)(vii):         not
applicable

Section 5(b)(iv):           not
applicable

 

“Specified Transaction” will have the meaning specified in Section 14
of this Agreement.

 

The “Credit Event Upon Merger” provisions of Section 5(b)(iv) of
the Agreement will not apply to Bank and Counterparty.

 

The “Automatic Early Termination”
provision of Section 6(a) of the Agreement will not apply to
Bank or to Counterparty.

 

Payments
on Early Termination.
For the purpose of Section 6(e) of the Agreement:  (i) Market Quotation shall apply; and (ii) the
Second Method shall apply.

 

“Termination Currency” means USD.

 

Tax Representations:

 

(I)                                    For
the purpose of Section 3(e) of the Agreement, each party represents
to the other party that it is not required by any applicable law, as modified
by the practice of any relevant governmental revenue authority, of any Relevant
Jurisdiction to make any deduction or withholding for or on account of any Tax
from any payment (other than interest under Section 2(e), 6(d)(ii), or 6(e) of
the Agreement) to be made by it to the other party under the Agreement. In
making this representation, each party may rely on (i) the accuracy
of any 

 

11

 

representations
made by the other party pursuant to Section 3(f) of the Agreement, (ii) the
satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
the Agreement, and the accuracy and effectiveness of any document provided by
the other party pursuant to Section 4(a)(i) or 4(a)(iii) of the
Agreement, and (iii) the satisfaction of the agreement of the other party
contained in Section 4(d) of the Agreement; provided that it
will not be a breach of this representation where reliance is placed on clause (ii) above
and the other party does not deliver a form or document under Section 4(a)(iii) of
the Agreement by reason of material prejudice to its legal or commercial
position.

 

(II)                                For
the purpose of Section 3(f) of the Agreement, each party makes the
following representations to the other party:

 

(i)                         Bank
represents that it is a corporation organized under the laws of England and
Wales.

 

(ii)                      Counterparty
represents that it is a corporation incorporated under the laws of the State of
Delaware.

 

Delivery Requirements:  For the purpose of Sections 3(d), 4(a)(i) and
(ii) of the Agreement, each party agrees to deliver the following
documents:

 

Tax
forms, documents or certificates to be delivered are:

 

Each party agrees to complete (accurately and in a
manner reasonably satisfactory to the other party), execute, and deliver to the
other party, United States Internal Revenue Service Form W-9 or W-8 BEN,
or any successor of such form(s): (i) before the first payment date under
this agreement; (ii) promptly upon reasonable demand by the other party;
and (iii) promptly upon learning that any such form(s) previously provided
by the other party has become obsolete or incorrect.

 

Other
documents to be delivered:

 

	
  Party
  Required to 

  Deliver Document

  	
   

  	
  Document Required to be Delivered

  	
   

  	
  When Required

  	
   

  	
  Covered by 

  Section 3(d)

  Representation

  
	
  Counterparty

  	
   

  	
  Evidence of the
  authority and true signatures of each official or representative signing this
  Confirmation

  	
   

  	
  Upon or before
  execution and delivery of this Confirmation

  	
   

  	
  Yes

  
	
  Counterparty

  	
   

  	
  Certified copy
  of the resolution of the Board of Directors or equivalent document
  authorizing the execution and delivery of this Confirmation

  	
   

  	
  Upon or before
  execution and delivery of this Confirmation

  	
   

  	
  Yes

  
	
  Bank

  	
   

  	
  Guarantee of its
  Credit Support Provider, substantially in the form of Exhibit A
  attached hereto, together with evidence of the authority and true signatures
  of the signatories, if applicable

  	
   

  	
  Upon or before
  execution and delivery of this Confirmation

  	
   

  	
  Yes

  

 

Addresses for Notices:  For the purpose of Section 12(a) of
the Agreement:

 

12

 

Address for notices or communications to Bank for
all purposes:

 

	
  Address:

  	
  Merrill Lynch
  International

  
	
   

  	
  Merrill Lynch
  Financial Centre

  
	
   

  	
  2 King Edward
  Street

  
	
   

  	
  London EC1A 1HQ

  
	
  Attention:

  	
  Manager, Fixed
  Income Settlements

  
	
  Facsimile No.:

  	
  44 207 995 2004

  
	
  Telephone No.:

  	
  44 207 995 3769

  

 

Address
for notices or communications to Counterparty for all purposes:

 

Amgen
Inc.

One
Amgen Center Drive

Thousand
Oaks, CA 91320-1799

Telephone
No.: (805) 447-1000

Facsimile
No.: (805) 449-2863

Attention: 
Treasurer

 

Process Agent:  For the purpose of Section 13(c) of
the Agreement, Bank appoints as its process agent:

 

	
  Address:

  	
  Merrill Lynch,
  Pierce, Fenner & Smith Incorporated

  
	
   

  	
  222 Broadway, 16th Floor

  
	
   

  	
  New York, New
  York 10038

  
	
  Attention:

  	
  Litigation
  Department

  

 

Counterparty
does not appoint a Process Agent.

 

Multibranch Party. For the
purpose of Section 10(c) of the Agreement: Neither Bank nor
Counterparty is a Multibranch Party.

 

Calculation Agent. The
Calculation Agent is Bank.

 

Credit Support Document.

 

Bank: Guarantee of ML &
Co. in the form attached hereto as Exhibit A.

 

Counterparty:  Not Applicable

 

Credit Support Provider.

 

With respect to Bank: ML & Co.

 

With respect to Counterparty:  Not Applicable.

 

Governing Law. This Confirmation
will be governed by, and construed in accordance with, the laws of the State of
New York.

 

Waiver of Jury Trial. Each party
waives, to the fullest extent permitted by applicable law, any right it may have
to a trial by jury in respect of any suit, action or proceeding relating to
this Transaction. Each party (i) certifies that no representative, agent
or attorney of the other party has represented, expressly or otherwise, that
such other party would not, in the event of such a suit, action or proceeding,
seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other party have been induced to enter into this Transaction, as applicable,
by, among other things, the mutual waivers and certifications provided herein.

 

Netting of Payments. The
provisions of Section 2(c) of the Agreement shall not be
applicable to this Transaction.

 

13

 

Basic
Representations. Section 3(a) of the
Agreement is hereby amended by the deletion of “and” at the end of Section 3(a)(iv);
the substitution of a semicolon for the period at the end of Section 3(a)(v) and
the addition of Sections 3(a)(vi), as follows:

 

Eligible Contract Participant; Line of Business. Each
party agrees and represents that it is an “eligible contract participant” as
defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended (“CEA”), this Agreement and the Transaction
thereunder are subject to individual negotiation by the parties and have not
been executed or traded on a “trading facility” as defined in Section 1a(33)
of the CEA, and it has entered into this Confirmation and this Transaction in
connection with its business or a line of business (including financial
intermediation), or the financing of its business.

 

Amendment
of Section 3(a)(iii). Section 3(a)(iii) of the
Agreement is modified to read as follows:

 

No Violation or Conflict. Such
execution, delivery and performance do not materially violate or conflict with
any law known by it to be applicable to it, any provision of its constitutional
documents, any order or judgment of any court or agency of government
applicable to it or any of its assets or any material contractual restriction
relating to Specified Indebtedness binding on or affecting it or any of its
assets.

 

Amendment
of Section 3(a)(iv). Section 3(a)(iv) of
the Agreement is modified by inserting the following at the beginning thereof:

 

“To
such party’s best knowledge,”

 

Additional
Representations:

 

Counterparty
Representations. Counterparty (i) has such knowledge and
experience in financial and business affairs as to be capable of evaluating the
merits and risks of entering into this Transaction; and (ii) has consulted
with its own legal, financial, accounting and tax advisors in connection with
this Transaction.

 

Acknowledgements:

 

(1)                                  The
parties acknowledge and agree that there are no other representations,
agreements or other undertakings of the parties in relation to this
Transaction, except as set forth in this Confirmation.

 

(2)                                  The
parties hereto intend for:

 

(a)                                  this
Transaction to be a “securities contract” as defined in Section 741(7) of
Title 11 of the United States Code (the “Bankruptcy Code”),
qualifying for the protections under Section 555 of the Bankruptcy Code;

 

(b)                                 a
party’s right to liquidate this Transaction and to exercise any other remedies
upon the occurrence of any Event of Default under the Agreement with respect to
the other party to constitute a “contractual right” as defined in the
Bankruptcy Code;

 

(c)                                  all
payments for, under or in connection with this Transaction, all payments for
the Shares and the transfer of such Shares to constitute “settlement payments”
as defined in the Bankruptcy Code.

 

(3)                                  The
parties acknowledge and agree that in the event of an Early Termination Date as
a result of an Event of Default, the amount payable under the Agreement will be
a cash amount calculated as described therein and that any delivery specified
in this Transaction will no longer be required.

 

Amendment
of Section 6(d)(ii). Section 6(d)(ii) of the
Agreement is modified by deleting the words
“on the day” in the second line thereof and substituting therefor “on the day
that is three Local Business Days after the day”.

 

14

 

Section 6(d)(ii) is further modified by deleting the words “two
Local Business Days” in the fourth line thereof and substituting therefor “three
Local Business Days.”

 

Amendment
of Definition of Reference Market-Makers. The definition of “Reference
Market-Makers” in Section 14 is hereby amended by adding in clause (a) after
the word “credit” and before the word “and” the words “or to enter into
transactions similar in nature to the Transactions.”

 

Consent
to Recording. Each party consents to the recording of the
telephone conversations of trading and marketing personnel of the parties and
their Affiliates in connection with this Confirmation. To the extent that one
party records telephone conversations (the “Recording Party”) and the other
party does not (the “Non-Recording Party”), the Recording Party shall in the
event of any dispute, make a complete and unedited copy of such party’s tape of
the entire day’s conversations with the Non-Recording Party’s personnel
available to the Non-Recording Party. The Recording Party’s tapes may be
used by either party in any forum in which a dispute is sought to be resolved
and the Recording Party will retain tapes for a consistent period of time in
accordance with the Recording Party’s policy unless one party notifies the
other that a particular transaction is under review and warrants further
retention.

 

Disclosure.
Each party hereby acknowledges and agrees that Bank has
authorized Counterparty to disclose this Transaction and any related hedging
transaction between the parties if and to the extent that Counterparty
reasonably determines (after consultation with Bank) that such disclosure is
required by law or by the rules of NASDAQ or any securities exchange.
Notwithstanding any provision in this Confirmation or the Agreement, in
connection with Section 1.6011-4 of the Treasury Regulations, the parties
hereby agree that each party (and each employee, representative, or other agent
of such party) may disclose to any and all persons, without limitation of
any kind, the U.S. tax treatment and U.S. tax structure of the Transaction and
all materials of any kind (including opinions or other tax analyses) that are
provided to such party relating to such U.S. tax treatment and U.S. tax
structure, other than any information for which nondisclosure is reasonably
necessary in order to comply with applicable securities laws.

 

Severability.
If any term, provision, covenant or condition of this Confirmation, or the
application thereof to any party or circumstance, shall be held to be invalid
or unenforceable in whole or in part for any reason, the remaining terms,
provisions, covenants, and conditions hereof shall continue in full force and
effect as if this Confirmation had been executed with the invalid or
unenforceable provision eliminated, so long as this Confirmation as so modified
continues to express, without material change, the original intentions of the
parties as to the subject matter of this Confirmation and the deletion of such
portion of this Confirmation will not substantially impair the respective
benefits or expectations of parties to this Agreement; provided, however,
that this severability provision shall not be applicable if any provision of Section 2,
5, 6 or 13 of the Agreement (or any definition or
provision in Section 14 to the extent that it relates to, or is
used in or in connection with any such Section) shall be so held to be invalid
or unenforceable.

 

Affected
Parties. For purposes of Section 6(e) of the
Agreement, each party shall be deemed to be an Affected Party in connection
with Illegality and any Tax Event.

 

15

 

Please confirm that the foregoing correctly sets forth
the terms of our agreement by executing the copy of this Confirmation enclosed
for that purpose and returning it to us.

 

Very truly yours,

 

Merrill Lynch
International

 

 

	
  By:

  	
   

  	
   

  

Name:

Title:

 

 

Confirmed as of the date
first above written:

 

AMGEN INC.

 

 

	
  By:

  	
   

  	
   

  

Name:

Title:

 

17

 

EXHIBIT A

 

GUARANTEE OF MERRILL LYNCH & CO., INC.

 

FOR
VALUE RECEIVED, receipt of which is hereby acknowledged, MERRILL LYNCH &
CO., INC., a corporation duly organized and existing under the laws of the
State of Delaware (“ML & Co.”), hereby unconditionally guarantees to
Amgen, Inc. (the “Company”), the due and punctual payment of any and all
amounts payable by Merrill Lynch International, a company organized under the
laws of England and Wales (“ML”), under the terms of the Confirmation of OTC
Convertible Warrant Transaction between the Company and ML (ML as Buyer), dated
as of February 14, 2006 (the “Confirmation”), including, in case of
default, interest on any amount due, when and as the same shall become due and
payable, whether on the scheduled payment dates, at maturity, upon declaration
of termination or otherwise, according to the terms thereof. In case of the
failure of ML punctually to make any such payment, ML & Co. hereby agrees
to make such payment, or cause such payment to be made, promptly upon demand
made by the Company to ML & Co.; provided, however that delay by the
Company in giving such demand shall in no event affect ML & Co.’s
obligations under this Guarantee. This Guarantee shall remain in full force and
effect or shall be reinstated (as the case may be) if at any time any
payment guaranteed hereunder, in whole or in part, is rescinded or must
otherwise be returned by the Company upon the insolvency, bankruptcy or reorganization
of ML or otherwise, all as though such payment had not been made.

 

ML &
Co. hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Confirmation;
the absence of any action to enforce the same; any waiver or consent by the
Company concerning any provisions thereof; the rendering of any judgment
against ML or any action to enforce the same; or any other circumstances that
might otherwise constitute a legal or equitable discharge of a guarantor or a
defense of a guarantor. ML covenants that this guarantee will not be discharged
except by complete payment of the amounts payable under the Confirmation. This
Guarantee shall continue to be effective if ML merges or consolidates with or
into another entity, loses its separate legal identity or ceases to exist.

 

ML &
Co. hereby waives diligence; presentment; protest; notice of protest,
acceleration, and dishonor; filing of claims with a court in the event of
insolvency or bankruptcy of ML; all demands whatsoever, except as noted in the
first paragraph hereof; and any right to require a proceeding first against ML.

 

ML &
Co. hereby certifies and warrants that this Guarantee constitutes the valid
obligation of ML & Co. and complies with all applicable laws.

 

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

 

This
Guarantee may be terminated at any time by notice by ML & Co. to
the Company given in accordance with the notice provisions of the Confirmation,
effective upon receipt of such notice by the Company or such later date as may be
specified in such notice; provided, however, that this Guarantee shall continue
in full force and effect with respect to any obligation of ML under the
Confirmation.

 

This
Guarantee becomes effective concurrent with the effectiveness of the
Confirmation, according to its terms.

 

18

 

IN
WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in
its corporate name by its duly authorized representative.

 

	
   

  	
  MERRILL LYNCH &
  CO., INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

19Exhibit
10.79

 

Confirmation of OTC Warrant Transaction

 

	
  Date:

  	
   

  	
  February 14, 2006

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Amgen Inc. (“Counterparty”)

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Merrill Lynch International (“Bank”)

  

 

Dear Sir / Madam:

 

The
purpose of this letter agreement (this “Confirmation”)
is to confirm the terms and conditions of the above-referenced transaction
entered into between Counterparty and Bank on the
Trade Date specified below (the “Transaction”).
This Confirmation constitutes a “Confirmation” as referred to in the Agreement
specified below.

 

The
definitions and provisions contained in the 2000 ISDA Definitions (the “Swap Definitions”) and the 2002
ISDA Equity Derivatives Definitions (the “Equity Definitions”
and, together with the Swap Definitions, the “Definitions”),
in each case as published by the International Swaps and Derivatives
Association, Inc., are incorporated into this Confirmation. In the event of any
inconsistency between the Swap Definitions and the Equity Definitions, the
Equity Definitions will govern, and in the event of any inconsistency between
the Definitions and this Confirmation, this Confirmation will govern. References
herein to a “Transaction” shall be deemed to be references to a “Share Option
Transaction” for the purposes of the Equity Definitions and to a “Swap
Transaction” for the purposes of the Swap Definitions. For purposes of this
Transaction, “Warrant Style”, “Warrant Type”, “Number of Warrants” and “Warrant
Entitlement” (each as defined below) shall be used herein as if such terms were
referred to as “Option Style”, “Option Type”, “Number of Options” and “Option
Entitlement”, respectively, in the Definitions.

 

This
Confirmation evidences a complete binding agreement between you and us as to
the terms of the Transaction to which this Confirmation relates. This
Confirmation (notwithstanding anything to the contrary herein), shall be
subject to an agreement in the 1992 form of the ISDA Master Agreement
(Multicurrency Cross Border) (the “Master Agreement”
or “Agreement”) as if we had executed
an agreement in such form (but without any Schedule and with elections
specified in the “ISDA Master Agreement” Section of this Confirmation) on the
Trade Date of the first such Transaction between us. In the event of any
inconsistency between the provisions of that Agreement and this Confirmation,
this Confirmation will prevail for the purpose of this Transaction. The parties
hereby agree that the Transaction evidenced by this Confirmation shall be the
only Transaction subject to and governed by the Agreement.

 

The
terms of the particular Transaction to which this Confirmation relates are as
follows:

 

General
Terms:

 

 

	
  Trade Date:

  	
   

  	
  February 14, 2006

  	 

	 
	
   

  	
   

  	
   

  
	 
	
  Warrant Style:

  	
   

  	
  European

  
	 
	
   

  	
   

  	
   

  
	 
	
  Warrant Type:

  	
   

  	
  Call

  
	 
	
   

  	
   

  	
   

  
	 
	
  Effective Date:

  	
   

  	
  Subject to cancellation of the Warrants prior to 5:00
  pm (EST) on such date by the Counterparty, February 17, 2006

  
	 
	
   

  	
   

  	
   

  
	 
	
  Seller:

  	
   

  	
  Counterparty

  
							

 

 

	
  Buyer:

  	
   

  	
  Bank

  	 

	 
	
   

  	
   

  	
   

  
	 
	
  Shares:

  	
   

  	
  Shares of common stock, $0.0001 par value, of
  Counterparty (Security Symbol: “AMGN”)

  
	 
	
   

  	
   

  	
   

  
	 
	
  Number of Warrants:

  	
   

  	
  31,453,500

  
	 
	
   

  	
   

  	
   

  
	 
	
  Warrant Entitlement:

  	
   

  	
  One (1) Share per Warrant

  
	 
	
   

  	
   

  	
   

  
	 
	
  Multiple Exercise:

  	
   

  	
  Inapplicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Strike Price:

  	
   

  	
  $107.90

  
	 
	
   

  	
   

  	
   

  
	 
	
  Premium:

  	
   

  	
  $472.8 million, payable by Bank to Counterparty on
  the Premium Payment Date

  
	 
	
   

  	
   

  	
   

  
	 
	
  Premium Payment Date:

  	
   

  	
  Trade Date + 3 business days

  
	 
	
   

  	
   

  	
   

  
	 
	
  Exchange:

  	
   

  	
  NASDAQ National Market

  
	 
	
   

  	
   

  	
   

  
	 
	
  Related Exchange(s):

  	
   

  	
  All Exchanges

  
	 
	
   

  	
   

  	
   

  
	 
	
  Procedures for Exercise:

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  
	 
	
  Expiration Time:

  	
   

  	
  11:59 pm

  
	 
	
   

  	
   

  	
   

  
	 
	
  Expiration Date:

  	
   

  	
  The Valuation Date.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Exercise Date:

  	
   

  	
  The Expiration Date

  
	 
	
   

  	
   

  	
   

  
	 
	
  Automatic Exercise:

  	
   

  	
  Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Valuation:

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  
	 
	
  Valuation Date:

  	
   

  	
  The later of (a) May 1, 2013 and (b) the 20th
  Averaging Date.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Averaging Dates:

  	
   

  	
  The 20  Full Exchange Business Days
  beginning on and including April 4, 2013.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Full Exchange Business Day:

  	
   

  	
  A Scheduled Trading Day that has a scheduled closing
  time for its regular trading session that is 4 pm (New York City time) or the
  then standard closing time for regular trading on the Exchange and is not a
  Disrupted Day.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Averaging Date Disruption:

  	
   

  	
  Modified Postponement.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Settlement Terms:

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  
	 
	
  Cash Settlement:

  	
   

  	
  Counterparty may elect to settle this Transaction by
  Cash Settlement or Net Physical Settlement by providing Bank with notice (“Settlement Notice”) in accordance
  with the Settlement Method Election provisions herein and in Section 7.1 of
  the Equity Definitions. In the event that Counterparty does not so notify
  Bank, this Transaction shall be settled pursuant to the Default Settlement
  Method provision below.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Settlement Currency:

  	
   

  	
  USD

  
							

 

1

 

	
  Settlement
  Price:

  	
   

  	
  The
  arithmetic mean of the closing price of the Shares on the Exchange on each
  Averaging Date.

  
	
   

  	
   

  	
   

  
	
  Cash
  Settlement Payment Date:

  	
   

  	
  Three
  (3) Currency Business Days after the
  Valuation Date

  
	
   

  	
   

  	
   

  
	
  Settlement
  Method Election:

  	
   

  	
  Applicable
  with respect to Cash Settlement or Net Physical Settlement only.

  
	
   

  	
   

  	
   

  
	
  Electing
  Party:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Settlement
  Method Election Date:

  	
   

  	
  Three
  (3) days prior to the first Averaging Date

  
	
   

  	
   

  	
   

  
	
  Default
  Settlement Method:

  	
   

  	
  Net
  Physical Settlement. In the event that this Transaction is settled by Net
  Physical Settlement, Counterparty shall deliver to Bank on the 1st Full
  Exchange Business Day following the Valuation Date a number of Shares (the “Delivered Shares”) equal to the
  Net Physical Settlement Amount divided by the Settlement Price, provided
  that in the event that the number of Shares calculated comprises any
  fractional Share, only whole Shares shall be delivered and an amount equal to
  the value of such fractional share shall be payable by the Counterparty to
  Bank in lieu of such fractional Share.

  
	
   

  	
   

  	
   

  
	
  Net
  Physical Settlement Amount:

  	
   

  	
  With
  respect to the Valuation Date, an amount, as calculated by the Calculation
  Agent, equal to the Number of Warrants multiplied by the Strike Price
  Differential.

  
	
   

  	
   

  	
   

  
	
  Strike
  Price Differential:

  	
   

  	
  In
  respect of the Valuation Date, an amount equal to the greater of: (i) the
  excess, if any, of the Settlement Price over the Strike Price, and (ii) zero.

  
	
   

  	
   

  	
   

  
	
  Net
  Physical Settlement

  	
   

  	
   

  
	
  Adjustment:

  	
   

  	
  Subject
  to the Maximum Deliverable Share Amount, if Bank receives any Delivered
  Shares under this Transaction that cannot be freely sold under the Securities
  Act (as defined below) or are subject to any legend restricting
  transferability:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)
  Bank shall sell the Delivered Shares in a commercially reasonable manner
  until the amount received by Bank for the sale of the Shares (the “Proceeds Amount”)
  is equal to the Net Physical Settlement Amount. Any remaining Delivered
  Shares shall be returned to Counterparty.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)
  If the Proceeds Amount is less than the Net Physical Settlement Amount,
  Counterparty shall promptly deliver upon notice from Bank additional Shares
  to Bank until the dollar amount from the sale of such Shares by Bank equals
  the difference between the Net Physical Settlement Amount and the Proceeds
  Amount. In no event shall Counterparty be required to deliver to Bank a
  number of Shares greater than the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
  Conditions
  to Net

  	
   

  	
   

  
	
  Physical
  Settlement:

  	
   

  	
  (i)
  If, in connection with or following delivery of Shares hereunder, Bank
  notifies the Counterparty that the Bank has reasonably determined after
  advice from counsel that there is a substantial material risk that such
  Shares are subject to restrictions on transfer in the hands of Bank pursuant
  to the rules and regulations under the Securities Act of 1933, as amended
  (the “Securities Act”),
  Counterparty shall promptly make available to Bank an effective registration
  statement (the “Registration Statement”)
  filed pursuant to Rule 415 under the Securities Act and such prospectuses as
  Bank may reasonably request to comply with the applicable prospectus delivery
  requirements (the “Prospectus”)
  for the

  

 

2

 

	
   

  	
   

  	
  resale
  by Bank of such number of Shares as Bank shall reasonably specify in
  accordance with this paragraph, such Registration Statement to be effective
  and Prospectus to be current until the earliest of the date on which (a) all
  Delivered Shares have been sold by Bank or returned to Counterparty pursuant
  to the Net Physical Settlement Adjustment provision above, (b) Bank has
  advised Counterparty that it no longer requires that such Registration
  Statement be effective, (c) all remaining Delivered Shares could be sold by
  Bank without registration pursuant to Rule 144 promulgated under the
  Securities Act (the “Registration Period”)
  or (d) Counterparty has provided a legal opinion in form and substance
  satisfactory to Bank (with customary assumptions and exceptions) that the
  Shares issuable upon exercise of these Warrants will be freely tradable under
  the Securities Act upon delivery to Bank and not subject to any legend
  restricting transferability. It is understood that the Registration Statement
  and Prospectus may cover a number of Shares equal to the aggregate number of
  Shares (if any) reasonably estimated by Bank to be potentially deliverable by
  Counterparty in connection with Net Physical Settlement hereunder (not to
  exceed the Maximum Deliverable Share Amount);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notwithstanding
  the foregoing, the Registration Statement and Prospectus provided for by this
  paragraph shall be subject to the same suspension of sales during “blackout
  dates” as provided in the following paragraph (ii).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)
  In the event that Bank notifies the Counterparty that the Bank has reasonably
  determined after advice from counsel that there is a substantial material
  risk that the Shares are subject to restrictions on transfer in the hands of
  Bank pursuant to the rules and regulations under the Securities Act,
  Counterparty will enter into a registration rights agreement with Bank in
  form and substance reasonably acceptable to Bank, which agreement will
  contain among other things, customary representations and warranties and
  indemnification, restrictions on sales during “blackout dates” as provided
  for in the registration rights agreement (the “Registration
  Rights Agreement”) entered into between Counterparty and the
  Initial Purchaser in connection with Counterparty’s 0.375% Convertible Senior
  Notes due 2013 (the “Convertible Notes”),
  and other rights relating to the registration of a number of Shares equal to
  the number of Delivered Shares and others Shares deliverable hereunder up to
  the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii) Counterparty
  shall promptly pay to Bank a $0.04 per Share fee with all Shares delivered in
  connection with Net Physical Settlement pursuant to a Registration Statement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)
  In the event Counterparty fails to comply with any of the conditions set forth
  in “Conditions to Net Physical Settlement” herein,
  Counterparty shall settle the Transaction through Cash Settlement; provided,
  however, that notwithstanding the foregoing, if either (a)
  Counterparty does not provide for the sale of the Shares under the
  Registration Statement as provided in the Registration Rights Agreement, (b)
  some Shares cannot be registered under the Registration Statement due to Rule
  415(a)(4) under the Securities Act, or (c) some or all of the Delivered
  Shares cannot be used to close out stock loans in the shares of Counterparty
  entered into to establish or maintain short positions by Bank in connection
  with this Transaction without a prospectus being required by applicable law
  to be delivered to such lender, then Counterparty may deliver unregistered or
  registered Shares. In the case of clauses (a) or (b) above, the value of any
  unregistered Shares so delivered shall be discounted to reflect their market
  value (calculated in a commercially reasonable manner). In the case of clause
  (c) above, the value of any such Delivered Shares shall reflect the cost

  

 

3

 

	
   

  	
   

  	
  (calculated in a commercially reasonable manner) to
  Bank of trading Shares in order to close out its hedge position if any, in all
  cases for purposes of calculating the Delivered Shares. In no event shall
  Counterparty be required to top-up the delivery in cash.

  	 

	 
	
   

  	
   

  	
   

  
	 
	
  Limitations on Net Physical

  	
   

  	
   

  
	 
	
  Settlement by Counterparty:

  	
   

  	
  Notwithstanding anything herein or in the Agreement
  to the contrary, the number of Shares that may be delivered at settlement by
  Counterparty shall not exceed 39,316,875 at any time (“Maximum Deliverable Share Amount”).

  
	 
	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
  Counterparty represents and warrants that the number
  of Available Shares as of the Trade Date is greater than the Maximum
  Deliverable Share Amount. Counterparty covenants and agrees that Counterparty
  shall not take any action of corporate governance or otherwise to reduce the
  number of Available Shares below the Maximum Deliverable Share Amount.

  
	 
	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
  For this purpose, “Available Shares” means the number of Shares
  Counterparty currently has authorized (but not issued and outstanding) less
  the maximum number of Shares that may be required to be issued by
  Counterparty in connection with stock options, convertibles, and other
  commitments of Counterparty that may require the issuance or delivery of
  Shares in connection therewith.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Dividends:

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  
	 
	
  Extraordinary Dividends:

  	
   

  	
  Any and all dividends paid by Counterparty.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Share Adjustments:

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  
	 
	
  Method of Adjustment:

  	
   

  	
  Calculation Agent Adjustment

  
	 
	
   

  	
   

  	
   

  
	 
	
  Extraordinary Events:

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  
	 
	
  Consequences of Merger Events:

  	
   

  	
  (a) Share-for-Share: Cancellation and Payment
  (Calculation Agent Determination)

  
	 
	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
  (b) Share-for-Other: Cancellation and Payment
  (Calculation Agent Determination)

  
	 
	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
  (c) Share-for-Combined: Cancellation and Payment
  (Calculation Agent Determination)

  
	 
	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
  With respect to any Extraordinary Events hereunder,
  upon the occurrence of Cancellation and Payment in whole or in part, the
  parties agree that the amount to be paid, in accordance with the Equity
  Definitions, shall constitute a Transaction Early Termination Amount, subject
  to satisfaction by the payment or delivery of Shares or cash as set forth in
  the Early Termination section below.

  
	 
	
   

  	
   

  	
   

  
	 
	
  Tender Offer:

  	
   

  	
  Not Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Nationalization, Insolvency

  	
   

  	
   

  
	 
	
  or Delisting:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination) (subject to satisfaction by payment or delivery of Shares or
  cash as set forth in “Early Termination” below)

  
							

 

 

4

 

	
  Determining Party:

  	
   

  	
  Buyer

  	 

	 
	
   

  	
   

  	
   

  
	 
	
  Additional Disruption Events:

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  
	 
	
  Change in Law:

  	
   

  	
  Not Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Failure to Deliver:

  	
   

  	
  Not Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Hedging Disruption Event:

  	
   

  	
  Not Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Increased Cost of Hedging:

  	
   

  	
  Not Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Hedging Party:

  	
   

  	
  Bank

  
	 
	
   

  	
   

  	
   

  
	 
	
  Loss of Stock Borrow:

  	
   

  	
  Not Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Increased Cost of Stock Borrow:

  	
   

  	
  Not Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Determining Party:

  	
   

  	
  Bank

  
	 
	
   

  	
   

  	
   

  
	 
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Agreements and

  	
   

  	
   

  
	 
	
  Acknowledgments Regarding

  	
   

  	
   

  
	 
	
  Hedging Activities:

  	
   

  	
  Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Additional Acknowledgments:

  	
   

  	
  Applicable

  
	 
	
   

  	
   

  	
   

  
	 
	
  Other Provisions:

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  
	 
	
  Additional Agreements:

  	
   

  	
  If due to the occurrence of an Extraordinary Event
  or otherwise Counterparty would be obligated to pay cash to Bank pursuant to
  the terms of this Agreement for any reason without having had the right
  (other than pursuant to this paragraph) to elect to deliver Shares in
  satisfaction of such payment obligation, then Counterparty may elect to
  deliver to Bank a number of Shares (whether registered or unregistered)
  having a cash value equal to the amount of such payment obligation (such
  number of Shares to be delivered to be determined by the Calculation Agent
  acting in a commercially reasonable manner to determine the number of Shares
  that could be sold by Bank over a reasonable period of time to realize the
  cash equivalent of such payment obligation taking into account any applicable
  discount (determined in a commercially reasonable manner) to reflect any
  restrictions on transfer as well as the market value of the Shares). Further,
  if Counterparty is delivering Shares as a result of a Merger Event, the
  Settlement Date will be immediately prior to the effective time of the Merger
  Event and the Shares will be deemed delivered at such time such that Bank
  will be a holder of the Shares prior to such effective time. Settlement
  relating to any delivery of Shares pursuant to this paragraph shall occur
  within a reasonable period of time. The number of Shares delivered pursuant
  to this paragraph shall not exceed the Maximum Deliverable Share Amount and
  shall be subject to the provisions under “Early Termination” hereof regarding
  Proceeds Amount.

  
							

 

 

5

 

	
  Early
  Termination:

  	
   

  	
  Notwithstanding
  any provision to the contrary, upon the designation of an Early Termination
  Date hereunder, a party’s payment obligation in respect of this Transaction
  only as determined in accordance with Second Method and Market Quotation (the
  “Transaction Early Termination Amount”)
  may, at the option of Counterparty, be satisfied by the party owing such
  amount by the delivery of a number of Shares equal to the Transaction Early
  Termination Amount divided  by the Termination Price (“Early Termination Stock Settlement”);
  provided, however, that Counterparty must notify Bank of its
  election of Early Termination Stock Settlement by the close of business on
  the day that is two Exchange Business Days following the day that the notice
  designating the Early Termination Date is effective.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Termination Price” means the
  closing price per Share on the Exchange on the Early Termination Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A
  number of Shares calculated as being due in respect of any Early Termination
  Stock Settlement will be deliverable on the third Exchange Business Day
  following the date that notice pursuant to Section 6(d)(i) of the Agreement
  specifying the number of Shares deliverable is effective. Section 6(d)(i) of
  the Agreement is hereby amended by adding the following words after the word
  “paid” in the fifth line thereof: “or any delivery is to be made, as
  applicable.”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On or
  prior to the Early Termination Date (if Early Termination Stock Settlement is
  elected), if so requested by the Bank, Counterparty shall enter into a
  registration rights agreement with Bank in form and substance reasonably
  acceptable to Bank which agreement will contain among other things, customary
  representations and warranties and indemnification, restrictions on sales during
  “blackout dates” as provided for in the Registration Rights Agreement and
  shall satisfy the conditions contained therein and Counterparty shall file
  and diligently pursue to effectiveness a Registration Statement pursuant to
  Rule 415 under the Securities Act. If and when such Registration Statement
  shall have been declared effective by the Securities and Exchange Commission,
  Counterparty shall have made available to Bank such Prospectuses as Bank may
  reasonably request to comply with the applicable prospectus delivery
  requirements for the resale by Bank of such number of Shares as Bank shall
  specify (or, if greater, the number of Shares that Counterparty shall
  specify). Such Registration Statement shall be effective and Prospectus shall
  be current until the earliest of the date on which (i) all Shares delivered
  by Counterparty in connection with an Early Termination Date, (ii) Bank has
  advised Counterparty that it no longer requires that such Registration
  Statement be effective or (iii) all remaining Shares could be sold by Bank
  without registration pursuant to Rule 144 promulgated under the Securities
  Act (the “Termination Registration Period”).
  It is understood that the Registration Statement and Prospectus will cover a
  number of Shares equal to the number of Shares plus the aggregate number of
  Shares (if any) reasonably estimated by Bank to be potentially deliverable by
  Counterparty in connection with Early Termination Stock Settlement hereunder,
  but in no event exceeding the Maximum Deliverable Share Amount. On each day
  during the Registration Period Counterparty shall represent that each of its
  filings under the Securities Act, the Securities Exchange Act of 1934, as
  amended (the “Exchange Act”),
  or other applicable securities laws that are required to be filed have been
  filed and that, as of the respective dates thereof and as of the date of this
  representation, there is no misstatement of a material fact contained therein
  or omission of a material fact required to be stated therein or necessary to
  make the statements therein not misleading.

  

 

6

 

	
   

  	
   

  	
  If
  Counterparty does not deliver Shares subject to an effective Registration
  Statement as set forth above, Counterparty may deliver unregistered Shares in
  an amount determined by Bank based upon Bank’s commercially reasonable
  judgment of the market value of such Shares. In no event shall Counterparty
  be required to deliver to Bank a number of Shares greater than the Maximum
  Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If
  Bank receives Shares in connection with an Early Termination Stock Settlement
  that cannot be freely sold under the Securities Act or that are subject to
  any legend restricting transferability, Bank shall sell such Shares in a
  commercially reasonable manner until the amount received by Bank for the sale
  of such Shares (net of transaction costs, calculated in a commercially
  reasonable manner) (the “Proceeds Amount”)
  is equal to the Transaction Early Termination Amount. Any remaining Shares
  shall be returned to Counterparty. If the Proceeds Amount is less than the
  Transaction Early Termination Amount, Counterparty shall promptly deliver
  additional Shares to Bank upon request until the dollar amount from the sale
  of such additional Shares by Bank (net of transaction costs, calculated in a
  commercially reasonable manner) equals the difference between the Transaction
  Early Termination Amount and the Proceeds Amount. In no event shall
  Counterparty be required to deliver to Bank a number of Shares greater than
  the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
  Compliance
  With Securities Laws:

  	
   

  	
  Each
  party represents and agrees that it has complied, and will comply, in
  connection with this Transaction and all related or contemporaneous sales and
  purchases of Shares, with the applicable provisions of the Securities Act,
  the Exchange Act, and the rules and regulations thereunder, including,
  without limitation, Rule 10b-5 and 13e and Regulation M under the Exchange
  Act, provided that each party shall be entitled to rely conclusively
  on any information communicated by the other party concerning such other
  party’s market activities and provided  further that
  Counterparty shall have no liability as a result of a breach of this
  representation due to Bank’s gross negligence or willful misconduct.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each
  party further represents that if such party (“X”)
  purchases any Shares from the other party pursuant to this Transaction, such
  purchase(s) will comply in all material respects with (i) all laws and
  regulations applicable to X, and (ii) all contractual obligations of X.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each
  party acknowledges that the offer and sale of the Transaction to it is
  intended to be exempt from registration under the Securities Act by virtue of
  Section 4(2) thereof. Accordingly, Counterparty represents and warrants to
  Bank that (i) it has the financial ability to bear the economic risk of its
  investment in the Transaction and is able to bear a total loss of its
  investment, (ii) it is an “accredited investor” as that term is defined in
  Regulation D as promulgated under the Securities Act and (iii) the
  disposition of the Transaction is restricted under this Confirmation, the
  Securities Act and state securities laws. On or prior to the Trade Date,
  Counterparty shall deliver to Bank a resolution of Counterparty’s board of
  directors authorizing the Transaction and such other certificate or
  certificates as Bank shall reasonably request.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Counterparty
  represents and acknowledges that as of the date hereof:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) No
  consent, approval, authorization, or order of, or filing with, any
  governmental agency or body or any court is required in connection with the
  execution, delivery or performance by Company of this Confirmation, except such
  as have been obtained or made and such as may be required under the Securities
  Act or state securities laws;

  

 

7

 

	
   

  	
   

  	
  (b)
  the number of Available Shares on the date hereof is greater than the Maximum
  Deliverable Share Amount; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)
  without limiting the generality of Section 13.1 of the Equity Definitions,
  Bank is not making any representations or warranties with respect to the
  treatment of the Transaction under FASB Statements 149 or 150, EITF Issue No.
  00-19 (or any successor issue statements) or under FASB’s Liabilities &
  Equity Project.

  
	
   

  	
   

  	
   

  
	
  Account
  Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Account
  for payments

  	
   

  	
   

  
	
  to
  Counterparty:

  	
   

  	
  Not
  Applicable

  
	
   

  	
   

  	
   

  
	
  Account for payment to
  Bank:

  	
   

  	
  Chase Manhattan Bank,
  New York

  
	
   

  	
   

  	
  ABA#: 021-000-021

  
	
   

  	
   

  	
  FAO: ML Equity
  Derivatives

  
	
   

  	
   

  	
  A/C: 066213118

  
	
   

  	
   

  	
   

  
	
  Agreement
  Regarding Shares:

  	
   

  	
  Counterparty
  agrees that, in respect of any Shares delivered to Bank, such Shares shall
  be, upon such delivery, duly and validly authorized, issued and outstanding,
  fully paid and non-assessable and subject to no adverse claims of any other
  party. The issuance of such Shares does not and will not require the consent,
  approval, authorization, registration or qualification of any government
  authority, except such as shall have been obtained on or before the delivery
  date of any Shares or in connection with any Registration Statement filed
  with respect to any Shares.

  
	
   

  	
   

  	
   

  
	
  Covenant
  Regarding Shares:

  	
   

  	
  Counterparty
  covenants that it shall not take any action to decrease the number of
  Available Shares below the Maximum Deliverable Share Amount.

  
	
   

  	
   

  	
   

  
	
  Bankruptcy
  Rights:

  	
   

  	
  In the
  event of Counterparty’s bankruptcy, Bank’s rights in connection with this
  Transaction shall not exceed those rights held by common shareholders. For
  the avoidance of doubt, the parties acknowledge and agree that Bank’s rights
  with respect to any other claim arising from this Transaction prior to
  Counterparty’s bankruptcy shall remain in full force and effect and shall not
  be otherwise abridged or modified in connection herewith.

  
	
   

  	
   

  	
   

  
	
  Set-Off:

  	
   

  	
  Each
  party waives any and all rights it may have to set-off, whether arising under
  any agreement, applicable law or otherwise.

  
	
   

  	
   

  	
   

  
	
  Collateral:

  	
   

  	
  None.

  
	
   

  	
   

  	
   

  
	
  Transfer:

  	
   

  	
  Counterparty
  may transfer its rights and delegate its obligations under this Transaction
  in accordance with Section 7 of the Master Agreement. Bank may assign its
  rights and delegate its obligations hereunder, in whole or in part, to any
  other person (an “Assignee”)
  without the prior consent of the Counterparty, effective (the “Transfer Effective Date”) upon
  delivery to Counterparty of an executed acceptance and assumption by the
  Assignee (an “Assumption”)
  of the transferred obligations of Bank under this Transaction (the “Transferred Obligations”).

  

 

8

 

	
  Regulation:

  	
   

  	
  Bank
  is regulated by The Securities and Futures Authority Limited and has entered
  into this Transaction as principal.

  
	
   

  	
   

  	
   

  
	
  Indemnity:

  	
   

  	
  Each
  party agrees to indemnify the other party, its Affiliates and their
  respective directors, officers, agents and controlling parties (each such
  person being an “Indemnified Party”)
  from and against any and all losses, claims, damages and liabilities, joint
  and several, to which such Indemnified Party may become subject because of a
  breach of any representation or covenant hereunder, in the Agreement or any
  other Agreement relating to the Agreement or Transaction and will reimburse
  any Indemnified Party for all reasonable expenses (including reasonable legal
  fees and expenses) as they are incurred in connection with the investigation
  of, preparation for, or defense of, any pending or threatened claim or any
  action or proceeding arising therefrom, whether or not such Indemnified Party
  is a party thereto.

  

 

Additional
Agreements, Representations and Covenants of Counterparty, Etc.:

 

(a)                                  Counterparty
hereby represents and warrants to Bank, on each day from the Trade Date to and
including the earlier of (i) February 17, 2006 and (ii) the date by which Bank
is able to initially complete a hedge of its position created by this
Transaction, that:

 

(1)                                  it
will not, and will not permit any person or entity subject to its control to,
bid for or purchase Shares during such period except as disclosed in the
Offering Memorandum relating to the Convertible Notes; and

 

(2)                                  it
has publicly disclosed all material information necessary for it to be able to
purchase or sell Shares in compliance with applicable federal securities laws
and that it has publicly disclosed all material information with respect to its
condition (financial or otherwise).

 

(b)         The parties hereby agree
that all documentation with respect to this Transaction is intended to qualify
this Transaction as an equity instrument for purposes of EITF 00-19.

 

(c)          No collateral shall be
required by either party for any reason in connection with this Transaction.

 

(d)         Bank shall not be
entitled to exercise any Warrant hereunder as provided below, and Automatic
Exercise shall not apply with respect to any Warrant, to the extent the
exercise of such Warrant would cause Bank to become, directly or indirectly,
the beneficial owner of more than 8.0 percent of the class of the Counterparty’s
equity securities that is comprised of the Shares for purposes of Section 13 of
the Exchange Act (in such case, an “Excess Share Owner”).

 

Bank shall provide prior
notice to Counterparty if the exercise of any Warrant hereunder would cause
Bank to become directly or indirectly, an Excess Share Owner; provided
that the failure of Bank to provide such notice shall not alter the
effectiveness of the provisions set forth in the preceding sentence and any
purported exercise in violation of such provisions shall be void and have no
effect.

 

If Bank is not entitled
to exercise any Warrant because such exercise would cause Bank to become,
directly or indirectly, an Excess Share Owner and Bank thereafter disposes of
Shares owned by it or any action is taken that would then permit Bank to
exercise such Warrant without such exercise causing it to become, directly or
indirectly, an Excess Share Owner, then Bank shall provide notice of the taking
of such action to Counterparty and such Warrant shall then become exercisable
by Bank to the extent such Warrant is otherwise or had otherwise become
exercisable hereunder. In such event, the Expiration Date with respect to such
Warrant shall be the date on which Counterparty receives such notice from Bank,
and the related Settlement Date shall be as soon as reasonably practicable
after receipt of such notice but no more than three (3) Exchange Business Days
thereafter (but in no event shall the Settlement Date occur prior to the date
on which it would have otherwise occurred but for the

 

9

 

provisions of this
paragraph (d)); provided that the related Net Physical Settlement Amount
shall be the same as the Net Physical Settlement Amount but for the provisions
of this paragraph (d). In addition, within 30 calendar days of the
Settlement Date, Counterparty shall use its reasonable efforts to refrain from
activities that could reasonably be expected to result in Bank’s ownership of
Shares exceeding 10% of all issued and outstanding Shares.

 

(e)          Bank hereby agrees that
from the Trade Date through to and including the Settlement Date, it will:

 

(1)                                  use
its reasonable efforts to not become an “affiliate” of Counterparty as such
term is defined in Regulation 144(a)(1) under the Securities Act; and

 

(2)                                  not
vote any Shares held or received pursuant hereto, as to which it has the right
to exercise a vote.

 

ISDA
Master Agreement

 

With respect to the Agreement, Bank and Counterparty
each agree as follows:

 

Specified Entities:

 

(i) in relation to Bank,
for the purposes of:

 

Section 5(a)(v):     not applicable

Section 5(a)(vi):    not applicable

Section 5(a)(vii):   not applicable

Section 5(b)(iv):    not applicable

 

and (ii) in relation
to Counterparty,  for the purposes of:

 

Section 5(a)(v):     not applicable

Section 5(a)(vi):    not applicable

Section 5(a)(vii):   not applicable

Section 5(b)(iv):    not applicable

 

“Specified Transaction”
will have the meaning specified in Section 14 of this Agreement.

 

The “Credit Event Upon Merger”
provisions of Section 5(b)(iv) of the Agreement will not apply to Bank
and Counterparty.

 

The “Automatic Early
Termination” provision of Section
6(a) of the Agreement will not apply to Bank or to Counterparty.

 

Payments on Early Termination. For the purpose of Section 6(e)
of the Agreement:  (i) Market
Quotation shall apply; and (ii) the Second Method shall apply.

 

“Termination Currency”
means USD.

 

Tax Representations:

 

(I)                                    For
the purpose of Section 3(e) of the Agreement, each party represents to the
other party that it is not required by any applicable law, as modified by the
practice of any relevant governmental revenue authority, of any Relevant
Jurisdiction to make any deduction or withholding for or on account of any Tax
from any payment (other than interest under Section 2(e), 6(d)(ii), or 6(e) of
the Agreement) to be made by it to the other party under the Agreement. In
making this representation, each party may rely on (i) the accuracy of any

 

10

 

representations made by
the other party pursuant to Section 3(f) of the Agreement, (ii) the
satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of the
Agreement, and the accuracy and effectiveness of any document provided by the
other party pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and
(iii) the satisfaction of the agreement of the other party contained in Section
4(d) of the Agreement; provided that it will not be a breach of this representation
where reliance is placed on clause (ii) above and the other party does not
deliver a form or document under Section 4(a)(iii) of the Agreement by reason
of material prejudice to its legal or commercial position.

 

(II)                                For
the purpose of Section 3(f) of the Agreement, each party makes the following
representations to the other party:

 

(i)                         Bank
represents that it is a corporation organized under the laws of England and
Wales.

 

(ii)                      Counterparty
represents that it is a corporation incorporated under the laws of the State of
Delaware.

 

Delivery Requirements:  For the purpose of Sections 3(d), 4(a)(i)
and (ii) of the Agreement, each party agrees to deliver the following
documents:

 

Tax forms, documents or
certificates to be delivered are:

 

Each
party agrees to complete (accurately and in a manner reasonably satisfactory to
the other party), execute, and deliver to the other party, United States
Internal Revenue Service Form W-9 or W-8 BEN, or any successor of such form(s):
(i) before the first payment date under this agreement; (ii) promptly upon
reasonable demand by the other party; and (iii) promptly upon learning
that any such form(s) previously provided by the other party has become
obsolete or incorrect.

 

Other documents to be
delivered:

 

	
  Party Required
  to

  Deliver Document

  	
   

  	
  Document Required to be Delivered

  	
   

  	
  When Required

  	
   

  	
  Covered by

  Section 3(d)

  Representation

  
	
  Counterparty

  	
   

  	
  Evidence of the
  authority and true signatures of each official or representative signing this
  Confirmation

  	
   

  	
  Upon or before
  execution and delivery of this Confirmation

  	
   

  	
  Yes

  
	
  Counterparty

  	
   

  	
  Certified copy
  of the resolution of the Board of Directors or equivalent document
  authorizing the execution and delivery of this Confirmation

  	
   

  	
  Upon or before
  execution and delivery of this Confirmation

  	
   

  	
  Yes

  
	
  Bank

  	
   

  	
  Guarantee of its
  Credit Support Provider, substantially in the form of Exhibit A attached
  hereto, together with evidence of the authority and true signatures of the
  signatories, if applicable

  	
   

  	
  Upon or before
  execution and delivery of this Confirmation

  	
   

  	
  Yes

  

 

Addresses for Notices:  For the purpose of Section 12(a) of
the Agreement:

 

11

 

Address for notices or communications to Bank for
all purposes:

 

	
  Address:

  	
   

  	
  Merrill Lynch
  International

  
	
   

  	
   

  	
  Merrill Lynch Financial
  Centre

  
	
   

  	
   

  	
  2 King Edward Street

  
	
   

  	
   

  	
  London EC1A 1HQ

  
	
  Attention:

  	
   

  	
  Manager, Fixed Income
  Settlements

  
	
  Facsimile No.:

  	
   

  	
  44 207 995 2004

  
	
  Telephone No.:

  	
   

  	
  44 207 995 3769

  

 

Address for notices or
communications to Counterparty for all purposes:

 

Amgen Inc.

One Amgen Center Drive

Thousand Oaks, CA 91320-1799

Telephone No.: (805)
447-1000

Facsimile No.: (805)
449-2863

Attention:  Treasurer

 

Process Agent:  For the purpose of Section 13(c) of the
Agreement, Bank appoints as its process agent:

 

Address:                                Merrill Lynch,
Pierce, Fenner & Smith Incorporated

222
Broadway, 16th Floor

New
York, New York 10038

Attention:              Litigation Department

 

Counterparty does not
appoint a Process Agent.

 

Multibranch Party. For the
purpose of Section 10(c) of the Agreement: Neither Bank nor Counterparty
is a Multibranch Party.

 

Calculation Agent. The
Calculation Agent is Bank.

 

Credit Support Document.

 

Bank: Guarantee of ML & Co. in the form
attached hereto as Exhibit A.

 

Counterparty: 
Not Applicable

 

Credit Support Provider.

 

With respect to Bank: ML & Co.

 

With respect to Counterparty:  Not Applicable.

 

Governing Law. This Confirmation
will be governed by, and construed in accordance with, the laws of the State of
New York.

 

Waiver of Jury Trial. Each party
waives, to the fullest extent permitted by applicable law, any right it may
have to a trial by jury in respect of any suit, action or proceeding relating
to this Transaction. Each party (i) certifies that no representative, agent or
attorney of the other party has represented, expressly or otherwise, that such
other party would not, in the event of such a suit, action or proceeding, seek
to enforce the foregoing waiver and (ii) acknowledges that it and the other
party have been induced to enter into this Transaction, as applicable, by,
among other things, the mutual waivers and certifications provided herein.

 

Netting of Payments. The
provisions of Section 2(c) of the Agreement shall not be applicable to
this Transaction.

 

12

 

Basic Representations. Section
3(a) of the Agreement is hereby amended by the deletion of “and” at the end
of Section 3(a)(iv); the substitution of a semicolon for the period at
the end of Section 3(a)(v) and the addition of Sections 3(a)(vi),
as follows:

 

Eligible
Contract Participant; Line of Business. Each party agrees and
represents that it is an “eligible contract participant” as defined in Section
1a(12) of the U.S. Commodity Exchange Act, as amended (“CEA”),
this Agreement and the Transaction thereunder are subject to individual
negotiation by the parties and have not been executed or traded on a “trading
facility” as defined in Section 1a(33) of the CEA, and it has entered into this
Confirmation and this Transaction in connection with its business or a line of
business (including financial intermediation), or the financing of its
business.

 

Amendment of Section 3(a)(iii). Section
3(a)(iii) of the Agreement is modified to read as follows:

 

No
Violation or Conflict. Such execution, delivery and
performance do not materially violate or conflict with any law known by it to
be applicable to it, any provision of its constitutional documents, any order
or judgment of any court or agency of government applicable to it or any of its
assets or any material contractual restriction relating to Specified
Indebtedness binding on or affecting it or any of its assets.

 

Amendment of Section 3(a)(iv). Section
3(a)(iv) of the Agreement is modified by inserting the following at the
beginning thereof:

 

“To
such party’s best knowledge,”

 

Additional Representations:

 

Counterparty Representations.
Counterparty (i) has such knowledge and experience in financial and business
affairs as to be capable of evaluating the merits and risks of entering into
this Transaction; and (ii) has consulted with its own legal, financial,
accounting and tax advisors in connection with this Transaction.

 

Acknowledgements:

 

(1)           The parties acknowledge and agree
that there are no other representations, agreements or other undertakings of the
parties in relation to this Transaction, except as set forth in this
Confirmation.

 

(2)           The parties hereto intend
for:

 

(a)                                  this
Transaction to be a “securities contract” as defined in Section 741(7) of Title
11 of the United States Code (the “Bankruptcy Code”),
qualifying for the protections under Section 555 of the Bankruptcy Code;

 

(b)                                 a
party’s right to liquidate this Transaction and to exercise any other remedies
upon the occurrence of any Event of Default under the Agreement with respect to
the other party to constitute a “contractual right” as defined in the
Bankruptcy Code;

 

(c)                                  all
payments for, under or in connection with this Transaction, all payments for
the Shares and the transfer of such Shares to constitute “settlement payments”
as defined in the Bankruptcy Code.

 

(3)           The parties acknowledge and agree
that in the event of an Early Termination Date as a result of an Event of
Default, the amount payable under the Agreement will be a cash amount
calculated as described therein and that any delivery specified in this
Transaction will no longer be required.

 

Amendment of Section 6(d)(ii). Section
6(d)(ii) of the Agreement
is modified by deleting the words “on the
day” in the second line thereof and substituting therefor “on the day that is
three Local Business Days after the day”.

 

13

 

Section 6(d)(ii) is further modified by deleting the words “two
Local Business Days” in the fourth line thereof and substituting therefor “three
Local Business Days.”

 

Amendment of Definition of Reference Market-Makers.
The definition of “Reference Market-Makers” in Section 14 is hereby
amended by adding in clause (a) after the word “credit” and before the word “and”
the words “or to enter into transactions similar in nature to the Transactions.”

 

Consent to Recording. Each party
consents to the recording of the telephone conversations of trading and
marketing personnel of the parties and their Affiliates in connection with this
Confirmation. To the extent that one party records telephone conversations (the
“Recording Party”) and the other party does not (the “Non-Recording Party”),
the Recording Party shall in the event of any dispute, make a complete and
unedited copy of such party’s tape of the entire day’s conversations with the
Non-Recording Party’s personnel available to the Non-Recording Party. The
Recording Party’s tapes may be used by either party in any forum in which a
dispute is sought to be resolved and the Recording Party will retain tapes for
a consistent period of time in accordance with the Recording Party’s policy
unless one party notifies the other that a particular transaction is under
review and warrants further retention.

 

Disclosure. Each party hereby
acknowledges and agrees that Bank has authorized Counterparty to disclose this
Transaction and any related hedging transaction between the parties if and to
the extent that Counterparty reasonably determines (after consultation with
Bank) that such disclosure is required by law or by the rules of NASDAQ or any
securities exchange. Notwithstanding any provision in this Confirmation or the
Agreement, in connection with Section 1.6011-4 of the Treasury Regulations, the
parties hereby agree that each party (and each employee, representative, or
other agent of such party) may disclose to any and all persons, without
limitation of any kind, the U.S. tax treatment and U.S. tax structure of the
Transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to such party relating to such U.S. tax treatment
and U.S. tax structure, other than any information for which nondisclosure is
reasonably necessary in order to comply with applicable securities laws.

 

Severability. If any term,
provision, covenant or condition of this Confirmation, or the application
thereof to any party or circumstance, shall be held to be invalid or
unenforceable in whole or in part for any reason, the remaining terms,
provisions, covenants, and conditions hereof shall continue in full force and
effect as if this Confirmation had been executed with the invalid or
unenforceable provision eliminated, so long as this Confirmation as so modified
continues to express, without material change, the original intentions of the
parties as to the subject matter of this Confirmation and the deletion of such
portion of this Confirmation will not substantially impair the respective
benefits or expectations of parties to this Agreement; provided, however,
that this severability provision shall not be applicable if any provision of Section
2, 5, 6 or 13 of the Agreement (or any definition or
provision in Section 14 to the extent that it relates to, or is used in
or in connection with any such Section) shall be so held to be invalid or
unenforceable.

 

Affected Parties. For purposes
of Section 6(e) of the Agreement, each party shall be deemed to be an
Affected Party in connection with Illegality and any Tax Event.

 

14

 

Please
confirm that the foregoing correctly sets forth the terms of our agreement by
executing the copy of this Confirmation enclosed for that purpose and returning
it to us.

 

Very truly yours,

 

Merrill Lynch
International

 

 

	
  By: 

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

15

 

Confirmed as of the date
first above written:

 

	
  AMGEN INC.

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

16

 

EXHIBIT A

 

GUARANTEE
OF MERRILL LYNCH & CO., INC.

 

FOR VALUE RECEIVED,
receipt of which is hereby acknowledged, MERRILL LYNCH & CO., INC., a
corporation duly organized and existing under the laws of the State of Delaware
(“ML & Co.”), hereby unconditionally guarantees to Amgen, Inc. (the “Company”),
the due and punctual payment of any and all amounts payable by Merrill Lynch
International, a company organized under the laws of England and Wales  (“ML”), under the terms of the Confirmation
of OTC Warrant Transaction between the Company and ML (ML as Buyer), dated as
of February 14, 2006 (the “Confirmation”), including, in case of default, interest
on any amount due, when and as the same shall become due and payable, whether
on the scheduled payment dates, at maturity, upon declaration of termination or
otherwise, according to the terms thereof. In case of the failure of ML
punctually to make any such payment, ML 
& Co. hereby agrees to make such payment, or cause such payment to
be made, promptly upon demand made by the Company to ML & Co.; provided,
however that delay by the Company in giving such demand shall in no event
affect ML & Co.’s obligations under this Guarantee. This Guarantee shall
remain in full force and effect or shall be reinstated (as the case may be) if
at any time any payment guaranteed hereunder, in whole or in part, is rescinded
or must otherwise be returned by the Company upon the insolvency, bankruptcy or
reorganization of ML or otherwise, all as though such payment had not been
made.

 

ML & Co. hereby
agrees that its obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Confirmation; the absence of
any action to enforce the same; any waiver or consent by the Company concerning
any provisions thereof; the rendering of any judgment against ML or any action
to enforce the same; or any other circumstances that might otherwise constitute
a legal or equitable discharge of a guarantor or a defense of a guarantor. ML
covenants that this guarantee will not be discharged except by complete payment
of the amounts payable under the Confirmation. This Guarantee shall continue to
be effective if ML merges or consolidates with or into another entity, loses
its separate legal identity or ceases to exist.

 

ML & Co. hereby
waives diligence; presentment; protest; notice of protest, acceleration, and
dishonor; filing of claims with a court in the event of insolvency or
bankruptcy of ML; all demands whatsoever, except as noted in the first
paragraph hereof; and any right to require a proceeding first against ML.

 

ML & Co. hereby
certifies and warrants that this Guarantee constitutes the valid obligation of
ML & Co. and complies with all applicable laws.

 

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

 

This Guarantee may be
terminated at any time by notice by ML & Co. to the Company given in
accordance with the notice provisions of the Confirmation, effective upon
receipt of such notice by the Company or such later date as may be specified in
such notice; provided, however, that this Guarantee shall continue in full
force and effect with respect to any obligation of ML under the Confirmation.

 

This Guarantee becomes
effective concurrent with the effectiveness of the Confirmation, according to
its terms.

 

17

 

IN WITNESS WHEREOF, ML
& Co. has caused this Guarantee to be executed in its corporate name by its
duly authorized representative.

 

	
   

  	
  MERRILL LYNCH &
  CO., INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Date:

  

 

18

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