Document:

Exhibit

October 18, 2019

Mr. Peter Griffith  
XXXXXXXX
XXXXXXXX

Dear Peter:

Congratulations! You have made an excellent impression on Amgen and I am excited to present you with the attached offer package. As an organization dedicated to improving the lives of patients around the world, Amgen welcomes you to join the environment of diverse, ethical, committed and highly accomplished people who respect each other while competing intensely to win. Together, we live the Amgen values as we continue advancing science to serve patients.

On behalf of Amgen, I am pleased to offer you the position of Executive Vice President Finance Level 11, reporting to Robert A. Bradway. This offer and the compensation listed are subject to your appointment by our Board of Directors (the Board) and the Compensation and Management Development Committee (the Compensation Committee) providing final approval of the compensation listed in this letter.

Your annual salary will be $970,000.20 paid out bi-weekly and over 26 pay periods in one year.

This position is located in Thousand Oaks, CA.

Provided that you sign a “Sign-On/Retention Bonus Agreement for New Hire Staff Members” in the form provided by Amgen, you will be eligible to earn a bonus of $500,000.00, less federal and state tax deductions and other applicable deductions and withholdings, subject to the terms of that Agreement.  Please review that Agreement for information regarding timing and other payment details.

Subject to the approval of the Compensation and Management Development Committee of the Board of Directors or the Equity Award Committee of Amgen Inc. (the “Committee”), and subject to the vesting rules, you will be granted restricted stock units (RSU) with a USD value of $4,000,000.  The actual number of RSUs to be awarded shall be determined by dividing the grant value by the Amgen common stock closing price on the applicable grant date. Upon each applicable vesting date, you will receive a number of shares of Amgen common stock equal to the number of restricted stock units that vest, less any shares that are withheld to satisfy applicable taxes. This grant will vest beginning with the second anniversary of the grant date through the fourth 

anniversary at a rate of 33%, 33% and 34% each year, respectively, contingent upon your being actively employed with Amgen through each vesting date.

Restricted stock units will be subject to the terms and conditions set forth in the applicable grant agreement.

As an Amgen executive you are required to hold Amgen common stock in accordance with the Amgen Stock Ownership Guidelines. Your holding requirement is based on your Amgen GCF level and as a Executive Vice President Finance you are required to hold Amgen common stock in the amount equal to 3x base salary. You must meet your holding requirement by December 31st of the fifth calendar year following the date on which you became an Officer of Amgen. To help you meet your holding requirement, the Amgen Stock Ownership Guidelines prohibit you from selling stock that you receive as part of your Amgen LTI awards (including shares that you receive as a result of option exercise, special, promotional, and annual grants) until you have met your required stock ownership level.

Providing your start date is in 2019, you will be eligible for additional grants as part of Amgen’s Long Term Incentive (LTI) program. Your projected 2020 annual grant value is $4,000,000 and will be allocated between performance units, stock options and restricted stock units consistent with other senior executive grants.  Grants under the LTI program are discretionary as approved by the Committee.

You will be eligible to participate in Amgen’s Global Management Incentive Plan (the “GMIP”) pursuant to the terms of the GMIP. Your annual target incentive opportunity will be 100% of your base salary earnings during the plan year. Awards under the GMIP are discretionary. Your actual GMIP bonus may be more or less than this target amount, and may vary based on Company performance, any other criteria selected by the Company, and management’s assessment of your individual performance and contribution. You must be actively employed through the last regularly scheduled Amgen business day of the plan year to be eligible for that year’s GMIP bonus.

You are also eligible to participate in the Amgen Nonqualified Deferred Compensation Plan (the “DCP”) to voluntarily defer, on a pre-tax basis, a portion of your annual earnings, including base salary, sales incentive plan, and/or Executive Incentive Plan/Global Management Incentive Plan (GMIP) bonus. Shortly after commencing your employment at Amgen, you will receive an enrollment notice via e-mail regarding the Amgen’s DCP plan.  A Q&A regarding the DCP is enclosed.  

In addition, your position makes you eligible to participate in the Amgen Inc. Change of Control Severance Plan, as amended from time to time (the “COC”). COC eligibility and benefit levels are determined immediately prior to a “Change of Control” as defined in the COC. If, upon your termination, you are eligible to receive severance benefits under the COC and you are also eligible to receive severance benefits from another plan agreement or other source, you will be paid the greater of the amount from that plan or the amount provided in the COC, but not both amounts.  A copy of the COC is enclosed.

If, within the first three (3) years of your employment with Amgen, Amgen terminates your employment without “Cause,” as defined below, you will be entitled to the benefits described in this paragraph (the “Termination Paragraph), provided that you sign a general release in the form furnished to you by Amgen and do not timely revoke it.  The following are such benefits: two (2) years of your annual base salary, then in effect, and target cash incentive opportunity (i.e., GMIP or successor bonus plan target, which is currently 100%), then in effect, paid in a lump sum as soon as administratively practicable, but in no event later than March 15 of the year following the year in which Amgen terminates your employment and (2) if you elect continuation coverage under the Amgen group medical and dental plans for yourself and your qualified beneficiaries under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), Amgen will pay the cost of such coverage until the earlier to occur of the following: (A) eighteen (18) months following your termination of employment or (B) the date on which you are no longer eligible for such COBRA coverage.  Please note that this Termination Paragraph does not alter the at-will nature of your employment at Amgen.

For purposes of the Termination Paragraph, “Cause” means (i) unfitness for service, inattention to or neglect of duties, or incompetence; (ii) dishonesty; (iii) disregard or violation of the policies or procedures of Amgen; (iv) refusal or failure to follow lawful directions of the Company; (v) illegal, unethical or immoral conduct; or (vi) breach of the attached Amgen Proprietary Information and Inventions Agreement.

As an executive at Amgen, you will be eligible for the following: an annual physical examination provided by Amgen; and, reimbursement for up to $15,000.00, tax assisted, per year for financial counseling, tax preparation and related services.

You will also have the opportunity to participate in our comprehensive benefits program. Amgen’s excellent health care plan currently includes medical, dental, and vision coverage for you and your eligible dependents. Amgen covers the majority of the health care plan’s cost while staff members contribute towards the balance through payroll deductions. Please be advised that in order for you and your dependents to be eligible for Amgen’s benefits program you must:

		
	1.
	Report to work at Amgen or another location to which you are required to travel and perform the regular duties of your employment.

		
	2.
	Contact the Amgen Benefits Center at 1-800-97AMGEN, to enroll within 31 days of your hire date.

		
	3.
	Meet all other eligibility requirements under the plan.

The Amgen Retirement and Savings Plan, our 401(k) plan, provides an opportunity for you to save a percentage of your pay on a tax-deferred basis, within Internal Revenue Service limits. Amgen will also contribute to your 401(k) account to help you save for your future financial goals. These benefits, services, and programs are summarized in the enclosed brochure called “A Guide to Total Rewards at Amgen.”

Amgen is a Military Friendly Employer and proudly offers a generous military leave policy for Military Active Duty and Reservists. 

This offer of employment is contingent upon confirmation by Amgen of information listed on your employment application, and the receipt by Amgen of satisfactory results from a background verification and pre-employment drug test.  

You will be eligible for a merit increase in March 2020, under Amgen’s regular and customary performance and merit review cycle. 

Enclosed and included as part of this offer (Attachment 1) is information regarding Amgen's Proprietary Information and Inventions Agreement, and a packet of materials entitled "Arbitration of Disputes" which includes a Mutual Agreement to Arbitrate Claims. Also enclosed and included as part of this offer in Attachment 1 is information regarding Amgen's New Staff Member Letter and Certification. This offer is contingent upon you truthfully and accurately completing the Certification, and returning it to the Company before your first day of employment.

This offer of employment is also contingent upon your completing the items described in Attachment 1, and upon your ability to perform for Amgen all of the duties of your position without restriction from, or violation of, any enforceable contractual obligations owed to any former employer or entity for whom you worked or provided service(s).

By signing this letter, you understand and agree that your employment with Amgen is at-will. This means that your employment can terminate, with or without cause, and with or without notice, at any time, at your option or Amgen's option, and Amgen can terminate or change all other terms and conditions of your employment, with or without cause, and with or without notice, at any time. This at-will relationship will remain in effect 

throughout your employment with either Amgen Inc. or any of its subsidiaries or affiliates. This letter, and its enclosures, constitutes the entire agreement, arrangement and understanding between you and Amgen on the nature and terms of your employment with Amgen, including, but not limited to, the kind, character, and existence of your proposed job duties, the length of time your employment will last, and the compensation you will receive. This letter, its enclosures, supersedes any prior or contemporaneous agreement, arrangement, or understanding on this subject matter. By executing this letter as provided below, you expressly acknowledge the termination of any such prior agreement, arrangement, or understanding, except as referenced in this letter and/or its enclosures. Also, by your execution of this letter, you affirm that no one has made any written or oral statement that contradicts the provisions of this letter or its enclosures. The at-will nature of your employment, as set forth in this paragraph, can be modified only by a written agreement signed by both Amgen's Senior Vice President of Human Resources and you which expressly alters it. This at-will relationship may not be modified by any oral or implied agreement or by any Company policies, practices, or patterns of conduct.

The complete terms of the plans, programs, and policies referenced in this letter are set forth in their respective documents, which are maintained by the Company. The Company reserves the right to amend or terminate any of these plans, programs, or policies at any time, in its sole discretion. In the event of any difference between this offer letter and the provisions of the respective plan, program, or policy document, the respective document will govern.

You have made an excellent impression on the staff at Amgen.  We are enthusiastic about the contribution you can make, and we believe that Amgen can provide you with attractive opportunities for personal achievement and growth.  I look forward to your favorable reply by October 28, 2019.  If you accept our offer, please sign and date the copy of the letter and return it to our Talent Acquisition Department along with the completed and signed Proprietary Information and Inventions Agreement and the Mutual Agreement to Arbitrate Claims. Please retain the original offer letter for your records. If you have any questions regarding this offer, please contact Greg Comeaux at (805) 447-8035.

Sincerely,

	
	
	/s/ Robert A. Bradway

Robert A. Bradway
Chairman of the Board, President & Chief Executive Officer

JD:tb 
Enclosures

	
		
	/s/ Peter H. Griffith
	10-19-2019

	Signature of Acceptance                         

	Date

	
	
	XXXX

	Last 4 Digits of Social Security Number (For Identification Purposes) 
Last 4 Digits of Government ID (If No Social Security Number)

	
	
	October 23, 2019

	Anticipated Start Date 

ATTACHMENT 1

In order to accept our offer you will be required to:

		
	A)
	Complete, date and sign the Amgen New Staff Member Letter and Certification and return it with your signed offer letter.

		
	B)
	Complete, date and sign the Amgen Proprietary Information and Inventions Agreement and return it with your signed offer letter.

		
	C)
	Date and sign the enclosed Mutual Agreement to Arbitrate Claims and return it with your signed offer letter.

		
	D)
	You will be required to provide Amgen with proof of your identity and eligibility for employment per requirements of the Immigration Reform and Control Act of 1986 within 3 (three) days of hire.

		
	E)
	For California non-exempt staff only, sign and date the Notice To Employee, Labor Code 2810.5

NEW STAFF MEMBER LETTER AND CERTIFICATION

Welcome to Amgen (the “Company”).  The Company has no need to learn and does not want any proprietary, confidential or trade secret information or other property that belongs to any prior employers, entities or other persons you have worked for (collectively, “Prior Employers”). Please review and comply with the following instructions and policies, and execute the Certification below.

		
	•
	Carefully read the Company’s Proprietary Information and Inventions Agreement (“PIIA”) that you have executed, and make sure that you understand your obligations under the terms of the PIIA.  If you have any questions, please contact Amgen Human Resources.

		
	•
	You may not bring any material to the Company from third parties in hard copy, in electronic format or in any other form. Nor should you use any such material in your work for the Company.

		
	•
	Prior to commencing any work for the Company, conduct a search of your personal computer(s), email accounts, and any other electronic storage devices you possess, as well as any files you maintain in hard copy, for information or materials belonging to your Prior Employers.  You are instructed to make appropriate arrangements to return any such information or materials belonging to your Prior Employers, consistent with any obligations you have to the Prior Employers.

		
	•
	Do not disclose to or provide the Company with any customer lists you obtained from or during your employment with your Prior Employers.  When interacting with doctors or other members of the healthcare industry with whom you may have had contact while working for your Prior Employers, clearly indicate to such persons that you are an Amgen staff member, and focus on the Company’s products rather than using or discussing information related to your prior employment.

		
	•
	If you have any doubts regarding whether you may take, disclose, upload, access, or use any information in your possession, you must err on the side of not taking, disclosing, uploading, accessing or using the information.

		
	•
	Do not begin any work for the Company before your employment with your Prior Employers has officially ended.

		
	•
	After commencing work for the Company, do not request that any employee of your Prior Employers provide you with, or take any other steps to obtain, any information or property of your Prior Employers.

		
	•
	Under no circumstances are you permitted to connect to a Company computer any electronic storage device containing information or property relating to your Prior Employers.  Likewise, in performing work for the Company, you are not permitted to use, disclose, access or upload any such information or property.  If you discover that any confidential, proprietary, or trade secret information or property of your Prior Employers has been uploaded to any Company computer or email system(s), immediately inform Amgen Human Resources.

		
	•
	The Company may monitor and/or conduct an audit of your use of Company computer systems, and you should not have any expectation of privacy in data sent, stored or received on any Company systems.  See the Company’s Use  of Company Systems and Internet Conduct Policy for further details.

		
	•
	Disclose and identify below all agreements relating to your Prior Employers that may affect your eligibility to become employed by and/or to perform work for the Company, including any non-competition agreement(s), agreements relating to the solicitation of employees or customers, or other restrictive agreements (collectively, “Restrictive Agreements”), regardless of whether you believe these agreements are enforceable, apply to your potential employment with the Company, or have expired, and provide a copy to Amgen Human Resources.  If “none,” please so indicate. Do not leave blank.

		
	•
	If your position at the Company will involve manufacturing or process development; chemical, biologic, pharmaceutical, medical device, or diagnostic research; or development of therapeutic molecules, medical devices, or diagnostic assays or agents, please review your agreements with Prior Employers to determine whether you are required to assign intellectual property rights to any Prior Employer even after that employment has ended. If you do find such an agreement or if you are unsure, please send such agreement to Amgen Human Resources. If “none,” please so indicate. Do not leave blank.

 

	
			
	 Name of Agreement
	Employer 
	Date Signed 

	 
	 
	 

	 None
	EY
	 

	 None
	Sherwood Canyon Group, LLC
	 

	

(Attach additional sheets, if necessary)
	 
	 

		
	•
	If you are subject to an agreement not to solicit employees of your Prior Employers, you should refrain from doing so. You should specifically inform Human Resources if you are subject to such an agreement.  If you are subject to such an agreement and a former colleague contacts you about employment opportunities with the Company, please contact Human Resources for assistance.

		
	•
	Do not use any email account (including Company email accounts), text messages, Instant Messaging, or any other method of written communication to store or discuss any proprietary, confidential or trade secret information or other property belonging to your Prior Employers.

		
	•
	Immediately inform Human Resources if you are contacted in any manner by any former employer regarding your work for Amgen and/or any non-competition agreements, agreements that relate to the solicitation of employees or customers, or any other restrictive agreements you entered into in connection with any Prior Employers.

CERTIFICATION

I understand that the above list is only a summary and does not purport to include all of my continuing obligations to the Company.  By signing below I certify that I have and will continue to comply with the above instructions and policies.

I hereby agree that the Company may, at its sole option and discretion contact my Prior Employer(s) to determine whether any Restrictive Agreements exist and, if so, their applicable terms. I acknowledge that the Company may revoke its offer or terminate my employment if it determines in its reasonable business judgment that I have failed to disclose or am otherwise subject to an enforceable Restrictive Agreement or my failure to abide by the certifications contained herein.

Nothing in this Letter and Certification is intended to alter, or shall have any impact on, my status as an at-will employee of the Company.  In addition to its right to terminate my employment, the Company shall have the right to suspend me from work without pay during its investigation into (1) the existence and/or enforceability of any restrictions on my ability to perform work for the Company should I fail to disclose a Restrictive Agreement, or (2) the failure to abide by the certifications contained herein.

I agree:
	
	
	/s/ Peter H. Griffith

	Signature of Staff Member                       

	Peter H. Griffith

	Print Name of Staff Member

	 

	
	
	XXXX

	Last 4 Digits of Social Security Number (For Identification Purposes) 
Last 4 Digits of Government ID (If No Social Security Number)

	
	
	October 19, 2019

	Date 

AMGEN SIGN-ON/RETENTION BONUS AGREEMENT
FOR NEW HIRE STAFF MEMBERS

I,       Peter H. Griffith  , agree to accept my sign-on/retention bonus payment (“Bonus”) from Amgen on the following terms.

		
	1.
	The amount of the Bonus is described in the offer letter (as may be amended) that was provided separately to me.

		
	2.
	The Bonus will generally be paid to me as an advance after thirty (30) days following my start date with Amgen, and will be earned only after I complete two years of employment with Amgen. The Bonus is intended to facilitate my acceptance of employment with Amgen and my continued employment with Amgen for a period of at least two years. Amgen is providing me the Bonus with the expectation that I will not resign my employment during this two-year period.

		
	3.
	I understand and agree that I am an at-will employee and that I am free to resign at any time and Amgen is free to terminate my employment, with or without cause, at any time. Nevertheless, I understand that if I resign my employment with Amgen or are terminated for cause before I complete two years of employment, I have not earned any portion of the Bonus amount. Therefore, I agree to repay Amgen for the gross amount of my Bonus if I resign my employment for any reason or are terminated for cause within 24 months from my hire date at Amgen. I also agree that in the event of such a resignation, the amount to be reimbursed shall be due in full and payable by me immediately in cash (i.e., by check, wire transfer, or similar immediate payment) without further notice or demand by Amgen.

		
	4.
	Generally, a sign-on/retention bonus is considered ordinary wage income to the recipient. I understand that Amgen will report to appropriate federal and state taxing authorities all income that Amgen considers to be subject to taxation and will withhold appropriate taxes in accordance with federal and state regulations. I understand that it is my obligation to declare all income and pay all taxes owed on such income, if any.

		
	5.
	I understand that this agreement shall be governed by the law of the State of California.

		
	6.
	Nothing in this Agreement will be construed as an employment contract or to guarantee me employment at Amgen for any fixed term.  I understand that my employment at Amgen is at will.

		
	7.
	The provisions of this agreement are severable. If any part is found to be unenforceable, all other provisions shall remain fully valid and enforceable.

 
	
			
	I agree:
	 
	Amgen Inc.:

	 
	 
	 

	/s/ Peter H. Griffith
	 
	/s/ NHMiller

	Signature of Staff Member
	 
	Signature of Authorized Representative

	 
	 
	 

	Peter H. Griffith
	 
	Global Head, Talent Acquisition

	Print Name of Staff Member
	 
	Title of Representative

	
		
	XXXX
	10/18/2019

	Last 4 Digits of Social Security Number (For Identification Purposes) 
Last 4 Digits of Government ID (If No Social Security Number)
	Date

	
	
	October 19, 2019

	DateExhibit

Execution Copy
February 13, 2020

Bayer Healthcare LLC  
100 Bayer Boulevard
PO Box 915
Whippany, NJ 07981
Attention: Global Head of Oncology

Re:    Side Letter Regarding Collaboration Agreement and Stivarga Agreement

Dear Sir or Madam:

Reference is hereby made to the Collaboration Agreement, dated April 22, 1994, as amended on April 24, 1996 (the “First Amendment”), on February 1, 1999 (the “Second Amendment”), on March 6, 2006 (the “Co-Promotion Agreement”), on January 1, 2009 (the “Co-Development Costs Side Letter”),on October 11, 2011 (the “Fourth Amendment”), and on May 29, 2015 (the “2015 Side Letter Regarding Collaboration Agreement”) (such agreement as amended by the First Amendment, Second Amendment, the Co-Promotion Agreement, the Co-Development Costs Side Letter, Fourth Amendment and 2015 Side Letter Regarding Collaboration Agreement being referred to herein as the “Collaboration Agreement”) by and between Onyx Pharmaceuticals, Inc., a Delaware corporation having its principal place of business in South San Francisco, California (“Onyx”), and Bayer HealthCare LLC, a Delaware company having its principal place of business in Whippany, New Jersey and the successor-in-interest to Bayer Corporation (“Bayer” and, together with Onyx, the “Parties”). Capitalized terms used but not otherwise defined in this letter shall have the meanings assigned to such terms in the Collaboration Agreement.

Reference is hereby also made to (i) the Agreement Regarding Regorafenib dated October 11, 2011 by and between Onyx and Bayer (the “Stivarga Agreement”), (ii)  the Combination Development Agreement dated October 11, 2011, as amended on March 21, 2014 (as amended, the “Combination Development Agreement”), and (iii) the Letter of Agreement Regarding Pharmacovigilance Between Bayer HealthCare LLC and Amgen, Inc. Concerning Nexavar Worldwide” dated November 30, 2017 (the “Pharmacovigilance Agreement”).

Pursuant to Section 17.2 of the Collaboration Agreement and Section 4.7 of the Stivarga Agreement, Onyx retained KPMG LLP (“KPMG”) to review records related to the correctness of reports or payments made pursuant to the Collaboration Agreement and the Stivarga Agreement for the period January 1, 2013 through December 31, 2015 and, in connection therewith, KPMG prepared a draft report dated April 2018 pursuant to which KPMG made certain observations regarding the calculation of Marketing Profit or Loss made pursuant to the Collaboration Agreement for such period (the “KPMG Observations”) with which the Parties reasonably disagree.

The Parties have agreed to resolve their differences with respect to the KPMG Observations and to convert the financial arrangement set forth in the Collaboration Agreement with respect to the Ex-U.S. Territory (as hereafter defined) to a royalty arrangement.
In furtherance of the foregoing, and in order to operationalize the collaboration more efficiently, the Parties desire to modify certain terms of the Collaboration Agreement and the Stivarga Agreement as set forth in this letter.
In consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
1.Resolution of KPMG Review.  
		
	a.
	In consideration of and effective upon receipt of the payment made by Bayer to Onyx pursuant to paragraph 1.b below, the sufficiency of which is acknowledged by Onyx, Onyx agrees on behalf of itself and its Affiliates that (a) no payment, repayment or refund shall be due from Bayer to Onyx as a result of the KPMG Observations and Onyx agrees not to make any additional Claims against Bayer with respect to (i) the correctness of any report or payment made under the Collaboration Agreement with respect to Marketing Profit or Loss or Co-Development Costs through December 31, 2015 or (ii) the correctness of any report or payment made under the Stivarga Agreement through December 31, 2015 and (b) it waives its rights pursuant to (i) Section 17.2 of the Collaboration Agreement to examine those records as may be necessary or reasonably useful to determine, with respect to the period from January 1, 2016 through December 31, 2019, the correctness of any report or payment made under the Collaboration Agreement with respect to Marketing Profit or Loss or Co-Development Costs for the period from January 1, 2016 through December 31, 2019 and (ii) Section 4.7 of the Stivarga Agreement to examine those records as may be necessary or reasonably useful to determine, with respect to the period from January 1, 2016 through December 31, 2019, accuracy of all reports and payments made pursuant to the Stivarga Agreement for the period from January 1, 2016 through December 31, 2019. Notwithstanding the foregoing, the Parties acknowledge that, pursuant to a letter dated October 1, 2018 (the “Stivarga Royalty Letter”), Onyx disputes the royalty reports and payments delivered by Bayer to Onyx under the Stivarga Agreement and demands revised royalty reports that cover “Net Sales” of all “Products” (as such terms are defined in the Stivarga Agreement) worldwide, and Onyx expressly reserves all of its rights with respect to such dispute, and the Parties agree that nothing herein shall be construed to waive, limit or adversely affect such rights, including (i) the right to make additional Claims against Bayer with respect to the correctness of any report or payment made under the Stivarga Agreement dating to the third fiscal quarter of 2018 and (ii) the right to examine those records as may be necessary or reasonably useful to determine the accuracy of all reports and payments made pursuant to the Stivarga Agreement dating to the third fiscal quarter of 2018.

		
	b.
	Provided Onyx has submitted an invoice to the address set forth in paragraph 2.f., Bayer agrees to make to Onyx a non-refundable, non-creditable payment in the amount of six million U.S. dollars (US$6,000,000.00).

		
	c.
	The Parties hereby agree that, notwithstanding anything to the contrary in the Collaboration Agreement, during the Ex-U.S. Royalty Term (as defined below), Bayer shall have exclusive authority and control over the development of Collaboration Products in all countries of the world and commercialization of the Collaboration Products in the Ex-U.S. Territory (including control over when and how to discontinue commercialization of the Collaboration Products in the Ex-U.S. Territory).  In exercising such authority and control, Bayer shall use the level of efforts and resources (including the promptness with which such efforts and resources would be applied) commonly used in the pharmaceutical industry with respect to a product of commercial potential similar to the Collaboration Products at a similar stage in its development or product life, taking into consideration its safety and efficacy, its cost to develop, the competitiveness of alternative products of Third Parties, the patent and other proprietary position of such product, its profitability and all other relevant factors.

		
	d.
	Additionally and in furtherance of Bayer’s exclusive authority and control set forth in Paragraph 1.c above, from and after January 1, 2020 and continuing throughout the Ex- U.S. Royalty Term, Bayer shall control, and be solely responsible for all costs and expenses relating to, development and commercialization of the Collaboration Products in all countries of the world, including, without limitation: (i) marketing and promotion, (ii) pricing and access and (iii) medical affairs. 

		
	e.
	The Parties hereby agree that, for purposes of the Parties’ prospective arrangements set forth in this letter, the “Ex-U.S. Territory” shall refer to all countries of the world except (i) as has been the agreed-upon practice of the Parties under the Collaboration Agreement, the fifty (50) states of the United States of America and the District of Columbia (but shall include territories and possessions thereof) and (ii) Japan. For clarity, the Ex-U.S. Territory includes the United States territories and possessions other than the fifty (50) states and the District of Columbia. 

2.Ex-U.S. Royalties. The Parties hereby agree that, notwithstanding anything in the Collaboration Agreement to the contrary, the allocation of Marketing Profits or Losses set forth in Section 16.1 of the Collaboration Agreement (including, without limitation, the allocation and/or reimbursement of Allowable Expenses) shall not apply with respect to the sale of Collaboration Products in the Ex-U.S. Territory during the Ex-U.S. Royalty Term. The Parties hereby agree that, during the Ex- U.S. Royalty Term, the exclusive compensation for sales of Collaboration Products in the Ex-U.S. Territory shall be as follows:
		
	a.
	Royalty. Bayer shall pay to Onyx non-refundable, non-creditable royalties equal to thirty- two percent (32%) of Net Sales of all Collaboration Products in the Ex-U.S. Territory during the Ex- U.S. Royalty Term. Any sales of Collaboration Products in the Ex-U.S. Territory by or on behalf of Bayer, its Affiliates, licensees and/or sublicensees shall be treated hereunder as if such sales were made by Bayer. If Bayer grants licenses to its Affiliates or Third Parties to make or sell Collaboration Products in any country, possession or territory of the Ex-U.S. Territory, it shall include an obligation for such parties to account for and report Net Sales of Collaboration Products on the same basis as if such sales were made by Bayer, and Bayer shall pay royalties to Onyx under this letter as if the Net Sales of such Collaboration Products by such Affiliates and Third Parties were Net Sales of Bayer. For the purposes of applying the definition of “Net Sales” to Net Sales from a country in the Ex-U.S. Territory, a licensee or sublicensee of Bayer or its Affiliates or any of their licensees or sublicensees who is granted such license or sublicense as a result of a settlement by Bayer of any action taken in a court or Governmental or Regulatory Authority, a compulsory license granted pursuant to Applicable Law or any action taken by a court or Governmental or Regulatory Authority shall not be considered a licensee or sublicensee of Bayer or its Affiliates or any of their licensees or sublicensees and, accordingly, gross receipts received by such licensee or sublicensees on account of sales of Collaboration Products shall not be taken into account for determining Net Sales. For clarity, however, amounts received by Bayer from such licensees or sublicensees in the form of license fees or royalties shall be treated as Net Sales, and Bayer shall pay royalties to Onyx under this letter as , amounts received by Bayer from such licensees or sublicensees in the form of license fees or royalties were Net Sales of Bayer. Notwithstanding the foregoing, on a country-by-country basis, if during the Ex-U.S. Royalty Term, a Third Party receives marketing authorization for and commences commercial sale of a Generic Product (as defined below) in a country, possession, or territory of the Ex-U.S. Territory set forth on Appendix A hereto (such countries, possessions or territories, the “Tier One Ex-U.S. Countries”), then royalties payable to Onyx with respect to Net Sales of the applicable Collaboration Product in such country, possession or territory shall be reduced to sixteen percent (16%) beginning on the first day of the first full calendar quarter following the date of first sale of the Generic Product in which Net Sales of the applicable Collaboration Product in such country, possession or territory in such calendar quarter decrease by more than fifty percent (50%) from the Net Sales of such Collaboration Product in such country, possession or territory in the calendar quarter immediately preceding the first sale of such Generic Product in such country, possession or territory. For the purposes of this provision, a “Generic Product” shall mean, with respect to a Collaboration Product, any pharmaceutical product in such Tier One Ex-U.S. Country that: (i) contains the same active pharmaceutical ingredient (irrespective of its solvate, hydrate, salt,  pro-drug or polymorphic form) as the Collaboration Product; (ii) is approved by the applicable Governmental or Regulatory Authority in such jurisdiction in reliance, in whole or in part, on the prior Drug Approval of such Collaboration Product; (iii) is bioequivalent to such Collaboration Product; and (iv) is sold in such jurisdiction by a Third Party that (a) is not a licensee or sublicensee of Bayer or its Affiliates or any of their licensees or sublicensees, (b) has not obtained such product from a chain of distribution including Bayer, its Affiliates or any of their licensees or sublicensees, and (c) is not otherwise authorized by Bayer or any of its Affiliates, licensees, sublicensees or distributors to sell such product (provided that a licensee or sublicensee of Bayer or its Affiliates or any of their licensees or sublicensees who is granted such license or sublicense as a result of a settlement by Bayer of any action taken in a court or Governmental or Regulatory Authority, a compulsory license granted pursuant to Applicable Law or any action taken by a court or Governmental or Regulatory Authority shall not be considered as having been authorized by Bayer or any of its Affiliates, licensees, sublicensees or distributors to sell such product for the purposes of this Paragraph 2.a.). Notwithstanding the foregoing, on a country-by country basis, from and after the calendar quarter in which Loss of Exclusivity (as defined below) occurs in any country, possession or territory of the Ex-U.S. Territory other than the Tier One Ex-U.S. Countries, then royalties payable to Onyx with respect to Net Sales of the applicable Collaboration Product in such country, possession or territory of the Ex-U.S. Territory shall be reduced to sixteen percent (16%).  

For the purposes of this provision, “Loss of Exclusivity” shall mean, on a country-by-country basis, the expiration of the last-to-expire Bayer Patent that includes a Valid Claim that covers a Collaboration Product sold in such country, possession or territory and, additionally, shall be deemed to have occurred (a) as of the Effective Date on a country-by-country basis in such countries where no Bayer Patent that includes a Valid Claim that covers the Collaboration Product sold in such country exists or (b) in the event a Third Party is granted (i) a license or sublicense as a result of a settlement by Bayer of any action taken in a court or Governmental or Regulatory Authority, or (ii) a compulsory license granted pursuant to Applicable Law or any action taken by a court or Governmental or Regulatory Authority; and “Valid Claim” shall mean a claim of a pending patent application or an issued and unexpired patent, which has not been held invalid or unenforceable by a patent office, court or other governmental agency of competent jurisdiction, which holding is unappealable. For purposes of this Agreement, “Loss of Exclusivity” shall be deemed to have occurred as of the date on a country-by-country basis in such countries where no Bayer Patent that includes a Valid Claim that covers the Collaboration Product sold in such country, possession or territory exists. “Bayer Patent” means the patents listed in Appendix B hereto. 
		
	b.
	Ex- U.S. Royalty Term. Royalties shall be paid under this Paragraph 2 on a country-by-country basis during the period from January 1, 2020 until the date of the termination or expiration, as the case may be, of the Collaboration Agreement in accordance with its terms (such period, the “Ex- U.S. Royalty Term”).

		
	c.
	Royalty Reports and Payments. Within thirty (30) days following the end of each calendar quarter during the Ex- U.S. Royalty Term, Bayer shall provide Onyx with a report containing the following information for such calendar quarter on a country-by-country basis: (i) the amount of gross sales of Collaboration Products in such country (in Euros), (ii) Net Sales in such country (in Euros), (iii) the conversion of such Net Sales from Euros into Dollars, and (iv) the calculation of the royalty payment due on such sales pursuant to Paragraph 2.a hereof. Bayer shall pay to Onyx all amounts due to Onyx pursuant to this Paragraph 2 following the receipt of an invoice pursuant to Paragraph 2.f.

		
	d.
	Books and Records. During the Ex- U.S. Royalty Term, Bayer shall, and shall cause its Affiliates, licensees and sublicensees to, keep complete and accurate books and records that disclose, on a country-by-country basis,  the total Ex-U.S. Territory sales and Net Sales of Collaboration Products in such country in the Ex-U.S. Territory, the number of units of Collaboration Products sold in such country in the Ex-U.S. Territory, and all matters relating to those sales that are relevant for the purposes of determining the royalties due to Onyx hereunder. During the Ex- U.S. Royalty Term, Bayer shall, and shall cause its Affiliates to, (i) maintain such books and records in sufficient detail to calculate all amounts payable hereunder and to verify compliance with Bayer’s obligations under this letter, and (ii) retain such books and records until five (5) years after the end of the period to which such books and records pertain.

		
	e.
	Other Royalty Terms. The Parties hereby acknowledge and agree that the terms of Sections 4.4 (Mode of Payment), 4.5 (Taxes), 4.6 (Interest on Late Payments), 4.7 (Audit), 4.8 (Audit Dispute) and 4.9 (Confidentiality) of the Stivarga Agreement, are incorporated into the Collaboration Agreement mutatis mutantis such that these provisions apply to sales of Collaboration Products in the Ex-U.S. Territory during the Ex- U.S. Royalty Term and the royalties payable to Onyx under this Paragraph 2 in connection therewith. 

		
	f.
	Invoices. Payments due to Onyx under paragraph 1.b. and 2.c. shall be made thirty (30) days after receipt of invoice which shall be sent to by electronic mail to invoice.bhc.usa@bayer.com.

3.Taxes. The “Tax Partnership,” as defined in Section 23.1 of the Collaboration Agreement, shall, effective January 1, 2020, be considered terminated and liquidated pursuant to Section 23.9 of the Collaboration Agreement. Article 23 of the Collaboration Agreement shall continue to govern any tax matters arising out of the Tax Partnership which relate to an event or transaction occurring before January 1, 2020. Without limiting the generality of the foregoing, royalties paid under Paragraph 2.a hereof shall not be deemed to be distributive shares of income from the Tax Partnership referred to in Section 23 of the Collaboration Agreement.
4.Collaboration Agreement.
		
	a.
	Governance. Article 3 of the Collaboration Agreement, from and after January 1, 2020 shall no longer have force or effect. Accordingly, any decision to be made by a committee to be constituted by Article 3 of the Collaboration is from and after January 1, 2020, reserved for Bayer in its sole discretion consistent with the terms of the Collaboration Agreement. No less than twice each calendar year (no later than July 1 and December 1 of each calendar year), Bayer shall provide the following information to the Amgen Alliance Manager: (a)for the Tier One Ex-U.S. Countries: (i) sales forecast for the following calendar year, (ii) any product-specific marketing programs anticipated to be implemented during the following calendar year (to the extent such information is available as of July 1 and December 1) and (iii) any known or anticipated entry of a Generic Product and (b) for the Ex-U.S. Territory, the total sales forecast for the following calendar year. Within sixty (60) days of the receipt of such information, the Amgen Alliance Manger may request a meeting (which can occur by means of telephone conference, videoconference or other means of communications) with  knowledgeable representatives of Bayer to address any reasonable questions Amgen may have with respect to such information.

		
	b.
	Disputes and Escalation.  Each Party shall nominate (or maintain) a representative to act as its alliance manager (the “Alliance Manager”). The Alliance Managers shall, inter alia, serve as the key contact point between the Parties, facilitate interactions between the Parties and facilitate the escalation process described in Section 25.1 of the Collaboration Agreement. A Party may replace its Alliance Manager at any time by providing written notice to the other Party.  Notwithstanding Section 25.1 of the Collaboration Agreement, any disputes among the Parties that cannot be resolved by good faith negotiation shall be referred to the Parties’ respective Alliance Managers. Any disputes which cannot be resolved by the Alliance Managers that cannot be resolved by good faith negotiations shall be referred to the Executive Officers, who shall meet as soon as possible, and not less than sixty (60) days after a dispute is referred to the Executive Officers. In the event that the Executive Officers are not able to resolve such dispute during such sixty (60) day period, either party may submit such dispute to arbitration in accordance with the terms of Section 25.1, which shall apply mutatis mutandis to disputes which are not resolved by the Executive Officers. “Executive Officers” means the Head of the Oncology Strategic Business Unit of Bayer and the Global Marketing Oncology Headof Amgen, or to such other senior officer of similar authority and standing as each Party may from time to time designate.

		
	c.
	Global Development. Except as expressly set forth in this letter, nothing in this letter is intended to modify or otherwise alter the provisions of the Collaboration Agreement with respect to ongoing and / or future global clinical development of the Collaboration Compounds. 

		
	d.
	Effect on Other Agreements. This letter agreement shall have no effect on the Pharmacovigilance Agreement or the Stivarga Agreement (except that paragraph 1.a shall serve as a waiver of Onyx’s rights under the Stivarga Agreement as described, and only to the extent described, therein) which each shall continue in full force and effect according to their respective terms.

		
	c.
	Notice. The addresses to which notices to Bayer pursuant to Section 28.7 of the Collaboration Agreement shall be addressed shall be:

If to Bayer, addressed to:
Bayer HealthCare LLC  
100 Bayer Boulevard
Whippany, New Jersey 09781 
Attention: Global Head of Oncology 
With a copy to:
Bayer HealthCare LLC  
100 Bayer Boulevard
Whippany, New Jersey 09781 
Attention: Head, Law, Patents and Compliance (Pharmaceuticals)

If to Onyx, addressed to:

Onyx Pharmaceuticals, Inc.
c/o Amgen Inc.
One Amgen Center Drive
Thousand Oaks, CA 91320
Attention: General Counsel
Facsimile: (805) 499-4531
5.2015 Side Letter Regarding Collaboration Agreement. 

		
	a.
	The proviso set forth in the first sentence of Paragraph 1.a. of the 2015 Side Letter Regarding Collaboration Agreement is hereby amended (new language is underlined).

“provided, however, that, if Bayer elects to discontinue commercialization of the Collaboration Products in the United States prior to later of (a) the expiration of the last-to-expire Bayer Patent that includes a Valid Claim that covers Collaboration Products sold in the United States, or (b) the expiration of regulatory exclusivity of the Collaboration Products in the United States, Onyx shall have the right to assume exclusive authority and control over the commercialization of the Collaboration Products in the United States and, in such event, the Parties would promptly agree upon a transition plan and agreement which addresses, inter alia, indemnification of Bayer for actions and activities undertaken by Onyx (and its Affiliates), a royalty payable to Bayer in recognition of its contributions to the Collaboration Product commensurate with the royalty payable hereunder and such other terms as the Parties may agree upon.”

		
	b.
	The last sentence of Paragraph 2 of the 2015 Side Letter Regarding Collaboration Agreement is hereby amended as follows (new language is underlined):

“Notwithstanding the foregoing, the Parties hereby acknowledge and agree that each and every product that Bayer commercializes in the United States as of the date hereof (including, without limitation, Stivarga® (regorafenib)), and combinations with such products, shall not be considered a Competing Product for the purposes hereof.”
    
		
	c.
	Paragraph 3.a. of the 2015 Side Letter Regarding Collaboration Agreement is hereby amended to include the following sentence: 

“Notwithstanding the foregoing, a licensee or sublicensee of Bayer or its Affiliates or any of their licensees or sublicensees who is granted such license or sublicense as a result of a settlement by Bayer of any action taken in a court or Governmental or Regulatory Authority or any action taken by a court or Governmental or Regulatory Authority shall not be considered a licensee or sublicensee of Bayer or its Affiliates or any of their licensees or sublicensees. Gross receipts received by such licensee or sublicensees on account of sales of Collaboration Products shall not be taken into account for determining Net Sales. For clarity, however, amounts received by Bayer from such licensees or sublicensees in the form of license fees or royalties shall be treated as Net Sales, and Bayer shall pay royalties to Onyx under this letter as , amounts received by Bayer from such licensees or sublicensees in the form of license fees or royalties were Net Sales of Bayer.” 

6.Combination Development Agreement. The Parties hereby acknowledge and agree that effective immediately, the Combination Development Agreement shall be terminated and shall have no further force or effect.
7.Full Force and Effect. Except as expressly set forth in this letter, the Collaboration Agreement remains in full force and effect.
8.Miscellaneous. Each Party shall bear its own costs and expenses required to implement the terms of this letter agreement and any such costs and expenses shall not be shared by the Parties. This letter, together with the Collaboration Agreement, as modified hereby, contains all of the terms agreed to by the Parties regarding the subject matter of this letter and supersedes any prior oral or written agreements, understandings or arrangements between the Parties as to the subject matter hereof. This letter may not be amended, modified, altered or supplemented except by means of a written agreement or other instrument executed by both Parties. This letter may be executed in one or more counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. Each Party may execute this letter by facsimile transmission or in PDF format sent by electronic mail. Facsimile or PDF signatures of authorized signatories of the Parties will be deemed to be original signatures, will be valid and binding upon the Parties and, upon delivery, will constitute due execution of this letter. This letter shall be deemed to have been entered into and shall be construed and enforced in accordance with the laws of the State of California without giving effect to any choice or conflict of laws provision.

[signature page follows]

Please confirm that the foregoing is in accordance with your understanding of our agreement by signing and returning to us a copy of this letter.

Sincerely,

ONYX PHARMACEUTICALS, INC.

/s/ David A.  Piacquad_____________
Name: David A. Piacquad
Title: Senior Vice President, Business Development

ACKNOWLEDGED AND AGREED: 
BAYER HEALTHCARE LLC
/s/ Robert LaCaze        
Name: Robert LaCaze
Title: EVP and Head of the Oncology Business Unit

Cc:    
Bayer HealthCare Pharmaceuticals Inc. 
100 Bayer Boulevard  
PO Box 915 
Whippany, NJ 07981-0915  
Attention: Head, Law Patents and Compliance  
Facsimile: 862-404-3053

 Appendix Omitted from Side Letter 

Pursuant to Regulation S-K, Item 601(a)(5), the appendices to the Side Letter, as listed below, have not been filed. The Registrant agrees to furnish supplementally a copy of any omitted appendices to the Securities and Exchange Commission upon request; provided, however, that the Registrant may request confidential treatment of omitted items.

Appendix

Appendix A     Tier One Ex-U.S. Countries
Appendix B     Bayer Patents

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