Document:

Exhibit 10.45

 

RESTRICTED
STOCK PURCHASE AGREEMENT

 

Dennis Fenton, Amgen Inc. Grantee:

 

On
this 6th day of December, 2004, Amgen Inc., a Delaware corporation (the “Company”),
pursuant to its Amended and Restated 1991 Equity Incentive Plan (the “Plan”)
has granted to you, the grantee named above, a right to purchase Twenty Thousand (20,000) shares (the “Shares”) of the $.0001 par
value common stock of the Company (“Common Stock”) pursuant to the terms of
this Restricted Stock Purchase Agreement (this “Agreement”) and the Plan.  Capitalized terms not defined herein shall
have the meanings assigned to such terms in the Plan.

 

I.              Purchase Price.  Subject to the terms and conditions of this
Agreement, the Shares may be purchased from the Company at a purchase price per
share of $.0001 for a total purchase price of $2.00 (the “Total Purchase Price”).  The Total Purchase Price shall be paid in
cash at the time of purchase.

 

II.            Repurchase Option.

 

(1)           Upon
termination of your employment with the Company or an Affiliate for any reason,
other than death or permanent and total disability (with such permanent and
total disability being certified by an independent medical advisor agreed to by
the Company and such individual or such individual’s legal representative prior
to the date of termination of employment with the Company), the Company shall
have the right and option to purchase from you or any holder of the Shares as
permitted under Section III(5) (a “Holder”) any or all of the Shares
at the per Share purchase price paid by you for such Shares (the “Repurchase
Option”).

 

(2)           The
Company may exercise the Repurchase Option by delivering personally or by
registered mail, to you or a Holder within ninety (90) days of the date of
termination of your employment, a notice in writing indicating the Company’s
intention to exercise the Repurchase Option and setting forth a date for
closing not later than thirty (30) days from the mailing of such notice. The
closing shall take place at the Company’s office.  At the closing, the Secretary of the Company
or other escrow agent as provided in Section VI shall deliver the stock
certificate or certificates evidencing the Shares to the Company, and the
Company shall deliver the purchase price therefor.

 

(3)           At
its option, the Company may elect to make payment for the Shares to a bank
selected by the Company.  The Company
shall avail itself of this option by a notice in writing to you or a Holder
stating the name and address of the bank, date of closing, and waiving the
closing at the Company’s office.

 

 

(4)           If
the Company does not elect to exercise the Repurchase Option conferred above by
giving the requisite notice to you or a Holder within ninety (90) days
following the date of termination of your employment, the Repurchase Option shall
terminate, and any restrictions on Shares remaining as of the date of the
termination of your employment shall lapse immediately.

 

(5)           One hundred percent (100%) of the
Shares shall initially be subject to the Repurchase Option.  The Shares shall be released from the
Repurchase Option in accordance with the schedule set forth in Section III(1).

 

III.           Lapse of Repurchase Option.

 

(1)           Subject to Sections III (2), (3) and
(4), the Repurchase Option shall lapse in accordance with the following schedule with
respect to the Shares which have not previously been forfeited by you, provided
you are actively employed by the Company or an Affiliate on the respective
dates:

 

	
  Date

  	
   

  	
  Number of Shares to Which Repurchase

  Option Shall Lapse

  
	
   

  	
   

  	
   

  
	
  December 6, 2005

  	
   

  	
  6,666

  
	
  December 6, 2006

  	
   

  	
  6,666

  
	
  December 6, 2007

  	
   

  	
  6,668

  

 

(2)           Upon
termination of your employment due to your permanent and total disability (with
such permanent and total disability being certified by an independent medical
advisor agreed to by the Company and such individual or such individual’s legal
representative prior to the date of termination of employment with the Company)
or your death, then the Repurchase Option shall lapse immediately with respect
to all the Shares awarded under this Agreement. 
For purposes of this Agreement, “termination of your employment” shall
mean the last date you are either an employee of the Company or an Affiliate or
engaged as a consultant or director to the Company or an Affiliate.

 

(3)           In addition, the lapsing of the
Repurchase Option pursuant to Section III(1) may be suspended during
a leave of absence as provided from time to time according to Company policies
and practices.

 

(4)           Notwithstanding
anything to the contrary contained herein, the Company may, as it deems appropriate,
in its sole discretion, accelerate the date on which the Repurchase Option
shall lapse with respect to any of the Shares that have not been previously
forfeited by you.

 

(5)           Your Shares are not assignable or
transferable, except by will or the laws of descent and distribution.  Notwithstanding the foregoing, all or a
portion of the Shares subject to the Repurchase Option may be transferred to an
Alternate Payee (as defined in the Plan) if required by the terms of a QDRO (as
defined in the Plan), as further described in the Plan; provided, that such
Alternate Payee is subject to the same terms and conditions as set forth in
this Agreement.

 

2

 

IV.           Legends. Certificates
representing the Shares issued pursuant to this Agreement shall, until all
restrictions lapse or shall have been removed and new certificates are issued
pursuant to Section V, bear the following legend:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO CERTAIN RESTRICTIONS AND REPURCHASE RIGHTS AND MAY BE SUBJECT
TO FORFEITURE UNDER THE TERMS OF THAT CERTAIN RESTRICTED STOCK PURCHASE
AGREEMENT BY AND BETWEEN AMGEN INC. (THE “COMPANY”) AND THE REGISTERED OWNER OF
SUCH SHARES, AND SUCH SHARES MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED,
TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF
UNDER ANY CIRCUMSTANCES, EXCEPT PURSUANT TO THE PROVISIONS OF SUCH AGREEMENT.”

 

V.            Issuance of Certificates; Tax
Withholding.

 

(1)           Subject to subsection (2) below,
upon the lapse of the Repurchase Option with respect to any of the Shares as
provided in Section III, the Company shall cause new certificates to be
issued with respect to such Shares and delivered to you or a Holder, free from
the legend provided for in Section IV and of the Repurchase Option.  Such Shares shall cease to be subject to the
terms and conditions of this Agreement.

 

(2)           Notwithstanding
subsection (1), no such new certificate shall be delivered to you or a
Holder unless and until you or a Holder shall have paid to the Company the full
amount of the minimum statutory withholding based on the minimum statutory
withholding rates for federal, state and local tax purposes, including payroll
taxes resulting from the grant of the Shares or the lapse or removal of the
restrictions (the “Tax Obligations”). 
You hereby agree that you or a Holder will satisfy the Tax Obligations
(x) resulting from the grant of the Shares, by paying to the Company, in cash
or by check, the full amount of the Tax Obligations, or (y) relating to the
lapse of the Repurchase Option with respect to any of the Shares as provided in
Section III, by hereby authorizing the Company to withhold from the shares
of the Common Stock otherwise deliverable to you as a result of the lapse of
the Repurchase Option with respect to any of the Shares as provided in Section III,
a number of shares having a fair market value less than or equal to the Tax
Obligations.  The number of shares of
Common Stock tendered by you pursuant to this subsection shall be
determined by the Company and be valued at the fair market value of the Common
Stock on the date the Tax Obligations arise. 
To the extent that the number of shares tendered by you pursuant to this
subsection is insufficient to satisfy the Tax Obligations, you hereby
agree to pay the Company, in cash or by check, the additional amount necessary
to fully satisfy the Tax Obligations. 
You agree to take any further actions and execute any additional
documents as may be necessary to effectuate the provisions of this Section V.

 

3

 

VI.           Escrow.  The Secretary of the Company or such other
escrow holder as the Committee may appoint shall retain physical custody of the
certificates representing the Shares until all of the restrictions lapse or
shall have been removed and in no event shall you retain physical custody of
any certificates representing Shares issued to you which are subject to the
Repurchase Option.

 

VII.          No
Contract for Employment.  This
Agreement is not an employment or service contract and nothing in this
Agreement shall be deemed to create in any way whatsoever any obligation on
your part to continue in the employ or service of the Company, or of the
Company to continue your employment or service with the Company.

 

VIII.        Notices.  Any notices provided for in this Agreement or
the Plan shall be given in writing and shall be deemed effectively given upon
receipt or, in the case of notices delivered by the Company to you, five (5) days
after deposit in the United States mail, postage prepaid, addressed to you at
such address as is currently maintained in the Company’s records or at such
other address as you hereafter designate by written notice to the Company.

 

IX.           Plan.  This Agreement is subject to all the provisions
of the Plan and its provisions are hereby made a part of this Agreement,
including without limitation the provisions of paragraph 7 of the Plan relating
to purchases of restricted stock, and is further subject to all
interpretations, amendments, rules and regulations which may from time to
time be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the
provisions of this Agreement and those of the Plan, the provisions of the Plan
shall control.

 

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
  AMGEN INC.

  
	
   

  	
   

  
	
   

  	
  By

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Duly authorized
  on behalf of the Board of Directors

  

 

Agreed and Accepted

as of the date first
written above

 

	
   

  	
   

  
	
  Dennis Fenton

  

 

4Exhibit 10.75

 

Confirmation of OTC Convertible
Note Hedge

 

	
  Date:

  	
   

  	
  February 14, 2006

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Amgen Inc. (“Counterparty”)

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
  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 purposes of the Equity Definitions and a “Swap Transaction”
for the purposes of the Swap 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

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  The date of issuance of
  the Reference Notes.

  
	
   

  	
   

  	
   

  
	
  Option Style:

  	
   

  	
  Bermuda

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Merrill Lynch
  International

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty

  

 

1

 

	
  Shares:

  	
   

  	
  The shares of common
  stock, $0.0001 par value, of Counterparty (Security Symbol: “AMGN”) or such
  other securities or property into which the Reference Notes are convertible
  on the date of determination.

  
	
   

  	
   

  	
   

  
	
  Initial Payment Amount:

  	
   

  	
  $328,100,000

  
	
   

  	
   

  	
   

  
	
  Initial Payment Amount

  	
   

  	
   

  
	
  Payment Date:

  	
   

  	
  Effective Date

  
	
   

  	
   

  	
   

  
	
  Potential Exercise
  Date:

  	
   

  	
  Each Valuation Date

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  NASDAQ National Market

  
	
   

  	
   

  	
   

  
	
  Related Exchange(s):

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Knock-in Event:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Knock-out Event:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Reference Notes:

  	
   

  	
  0.125% Convertible
  Notes of Counterparty due 2011 in the original principal amount of $2.5
  billion.

  
	
   

  	
   

  	
   

  
	
  Applicable Portion of
  the

  	
   

  	
   

  
	
  Reference Notes:

  	
   

  	
  50%. For the avoidance
  of doubt, the Calculation Agent shall, as it deems necessary, take into
  account the Applicable Portion of the Reference Notes in determining or
  calculating any delivery or payment obligations hereunder, whether upon a
  Conversion Event (as defined below) or otherwise.

  
	
   

  	
   

  	
   

  
	
  Conversion Event:

  	
   

  	
  Each conversion of any
  Reference Note pursuant to the terms of the Note Indenture (the principal
  amount of Reference Notes so converted, the “Conversion
  Amount” with respect to such Conversion Event) occurring
  before the Termination Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the Conversion
  Amount for any Conversion Event is less than the aggregate principal amount
  of Reference Notes then outstanding, then the terms of this Transaction shall
  continue to apply, subject to the terms and conditions set forth herein, with
  respect to the remaining outstanding principal amount of the Reference Notes
  multiplied by the Applicable Portion of the Reference Notes.

  
	
   

  	
   

  	
   

  
	
  Conversion Date:

  	
   

  	
  With respect to each
  Conversion Event, the date on which any conversion of any Reference Note into
  Shares becomes effective, as determined by Buyer in accordance with the terms
  of the Note Indenture.

  
	
   

  	
   

  	
   

  
	
  Note Indenture:

  	
   

  	
  The indenture, dated as
  of closing of the issuance of the Reference Notes, between Counterparty and
  JPMorgan Chase Bank, N.A., as trustee relating to the Reference Notes, as the
  same may be amended, modified or supplemented, subject to the “Additional
  Termination Events” provisions of this Confirmation.

  
	
   

  	
   

  	
   

  
	
  Termination Date:

  	
   

  	
  The earlier of (i) the
  maturity date of the Reference Notes and (ii) the first day on which
  none of such Reference Notes remain outstanding, whether by virtue of
  conversion, issuer repurchase or otherwise.

  

 

2

 

	
  Valuation:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Valuation Date:

  	
   

  	
  The final “trading day”
  in the applicable “conversion reference period” (each as defined in the Note
  Indenture) in respect of each Conversion Event.

  
	
   

  	
   

  	
   

  
	
  Settlement
  Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Method:

  	
   

  	
  Net Share Settlement or
  Net Cash Settlement consistent with Buyer’s election with respect to the
  Reference Notes converted in the applicable Conversion Event, provided that
  solely Net Share Settlement shall apply in the event that Buyer elects to
  deliver any shares in connection with the applicable Conversion Event.

  
	
   

  	
   

  	
   

  
	
  Settlement Notice:

  	
   

  	
  Buyer shall provide
  Seller with notice of its Settlement Method provided that in the event Buyer
  shall not deliver the Settlement Notice, the Settlement Method shall be Net
  Share Settlement but without regard to section (b) of the
  definition of Net Share Settlement. The Settlement Notice will include (to
  the extent not previously provided in the Conversion Notice with respect to
  the applicable Conversion Event) (i) the number of Reference Notes being
  converted, (ii) the first “trading day” in the relevant “conversion
  reference period” (each as defined in the Note Indenture) for the Reference
  Notes and (iii) if any, the applicable Cash Percentage.

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  Subject to the delivery
  of a Settlement Notice or Conversion Notice to the Seller, the third (3rd) “trading
  day” (as defined in the Note Indenture) following the applicable Valuation
  Date.

  
	
   

  	
   

  	
   

  
	
  Conversion Notice:

  	
   

  	
  Counterparty agrees to
  provide Seller with notice of any Conversion Event within two (2) ”trading
  days” after Counterparty’s receipt of notice of any Conversion Event from the
  Trustee (as defined in the Note Indenture) (such Conversion Notice can be
  provided by such Trustee). The Conversion Notice will include (i)  the
  number of Reference Notes being converted and (ii) the first “trading
  day” in the relevant “conversion reference period. “

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  On the Settlement Date,
  Seller shall deliver to Counterparty (a) a number of Shares equal to the
  related Net Share Settlement Amount and (b) (x) an amount in cash equal
  to the cash amount, if any, paid by Buyer in excess of the principal amount
  of the applicable Reference Notes for such Conversion Event under the Note
  Indenture multiplied by (y) the Applicable Portion of the Reference Notes.

  
	
   

  	
   

  	
   

  
	
  Net Cash Settlement:

  	
   

  	
  On the Settlement Date,
  Seller shall deliver to Counterparty an amount in cash equal to the related
  Net Cash Settlement Amount.

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement
  Amount:

  	
   

  	
  For each Conversion
  Event, the number of Shares equal to the shares delivered by Buyer for such
  Conversion Event under the Note Indenture multiplied by the Applicable
  Portion of the Reference Notes, provided that with respect to such Conversion
  Event if neither a Settlement Notice nor a Conversion Notice shall be
  delivered to the Seller prior to the start of the “conversion reference
  period” (as defined in the Note Indenture) applicable to such Conversion
  Event, the Net Share Settlement Amount for such Conversion Event shall be
  reduced by an amount determined by the parties, in a commercially reasonable
  manner each acting in good faith, representing the additional cost and
  expenses of Seller in “unwinding” its hedge with respect to such Conversion
  Event during the period from the delivery of such notice to the end of the
  applicable “conversion reference period” rather than over the entire “conversion
  reference period” (as defined in the Note Indenture). No reduction of the Net
  Share Settlement Amount shall reduce the Net Share Settlement Amount below
  zero.

  

 

3

 

	
  Net Cash Settlement
  Amount:

  	
   

  	
  For each Conversion
  Event, an amount equal to the cash delivered by the Buyer in excess of the
  principal amount of the applicable Reference Notes for such Conversion Event
  under the Note Indenture multiplied by the Applicable Portion of the
  Reference Notes, provided that with respect to such Conversion Event if the
  Settlement Notice shall not be delivered to the Seller prior to the start of
  the “conversion reference period” (as defined in the Note Indenture)
  applicable to such Conversion Event, the Net Cash Settlement Amount for such
  Conversion Event shall be reduced by an amount determined by the parties, in
  a commercially reasonable manner each acting in good faith, representing the
  additional cost and expenses of Seller in “unwinding” its hedge with respect
  to such Conversion Event during the period from the delivery of such notice
  to the end of the applicable “conversion reference period” rather than over
  the entire “conversion reference period” (as defined in the Note Indenture).
  No reduction of the Net Cash Settlement Amount shall reduce the Net Cash
  Settlement Amount below zero.

  
	
   

  	
   

  	
   

  
	
  Share
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Merger Event:

  	
   

  	
  The Transaction will be
  adjusted consistent with the Reference Notes as provided in the Note
  Indenture.

  
	
   

  	
   

  	
   

  
	
  Consequences for Merger
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Share-for-Share:

  	
   

  	
  The Transaction will be
  adjusted consistent with the Reference Notes as provided in the Note
  Indenture.

  
	
   

  	
   

  	
   

  
	
  Share-for-Other:

  	
   

  	
  The Transaction will be
  adjusted consistent with the Reference Notes as provided in the Note
  Indenture.

  
	
   

  	
   

  	
   

  
	
  Share-for-Combined:

  	
   

  	
  The Transaction will be
  adjusted consistent with the Reference Notes as provided in the Note
  Indenture.

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  The Transaction will be
  adjusted consistent with the Reference Notes as provided in the Note
  Indenture.

  
	
   

  	
   

  	
   

  
	
  Nationalization,
  Insolvency or Delisting:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination), provided Buyer shall determine
  whether payment shall be settled in cash or Shares.

  
	
   

  	
   

  	
   

  
	
  Additional Disruption
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change in Law:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable. If there is
  inability in the market to deliver Shares due to illiquidity on a day that
  would have been a Settlement Date, then the Settlement Date shall be the
  first succeeding Exchange Business Day on which there is no such inability to
  deliver, but in no such event shall the Settlement Date be later than the
  date that is two (2) Exchange Business Days immediately following what
  would have been the Settlement Date but for such inability to deliver.

  

 

4

 

	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Disruption
  Event:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Increased Cost of
  Hedging:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Seller

  
	
   

  	
   

  	
   

  
	
  Loss of Stock Borrow:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Increased Cost of Stock
  Borrow:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  Seller

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and Acknowledgments

  	
   

  	
   

  
	
  Regarding Hedging
  Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
   

  	
  Applicable

  

 

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

 

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

 

a.               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 Reference Notes; and

 

b.              Counterparty has
publicly disclosed all material information necessary for Counterparty 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).

 

2.                           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. If Counterparty would be obligated to receive cash from Seller
pursuant to the terms of this Agreement for any reason without having had the
right (other than pursuant to this paragraph (2)) to elect to receive Shares in
satisfaction of such payment obligation, then Counterparty may elect that
Seller deliver to Counterparty a number of Shares 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 purchased over a
reasonable period of time with the cash equivalent of such payment obligation).
Settlement relating to any delivery of Shares pursuant to this paragraph (2) shall
occur within a reasonable period of time.

 

Additional
Termination Events:

 

The occurrence of any of the following shall be an Additional
Termination Event with respect to Counterparty (which shall be the sole
Affected Party and this Transaction shall be the sole Affected Transaction):

 

1.                           an
Amendment Event (as defined below) occurs (in which case the entirety of this
Transaction shall be subject to termination);

 

5

 

2.                           a
Repayment Event (as defined below) occurs (in which case this Transaction shall
be subject to termination only in respect of the principal amount of Reference
Notes that cease to be outstanding in connection with or as a result of such
Repayment Event); or

 

3.                           the
transactions contemplated by the Purchase Agreement shall fail to close for any
reason, in which case the entirety of this Transaction shall terminate
automatically.

 

If the transactions contemplated by the Purchase Agreement shall fail
to close for any reason other than a breach of the Purchase Agreement by the
Initial Purchasers or the Counterparty, then the entirety of this Transaction
shall terminate automatically and all payments previously made hereunder shall
be returned to the person making such payment, including the Initial Payment
Amount, less an amount equal to the product of (a) 15,655,875 Shares and (b) the
sum of (i) US$0.50 per Share and (ii) an amount equal to the excess,
if any, of the closing price of the Shares on the Trade Date over the closing
price of the Shares on the date of the Termination Event (the “Break Expense”); provided that any
negative amount shall be replaced by zero and provided further that to the
extent the Initial Payment Amount has not been paid, Counterparty shall
promptly pay Seller the Break Expense. Seller and Counterparty agree that
actual damages would be difficult to ascertain under these circumstances and
that the amount of liquidated damages resulting from the determination in the
preceding sentence is a good faith estimate of such damages and not a penalty.

 

If the transactions contemplated by the Purchase Agreement shall fail
to close because of a breach of the Purchase Agreement by the Initial
Purchasers, then the entirety of this Transaction shall terminate
automatically, and all payments previously made hereunder, including the
Initial Payment Amount, shall be promptly returned to the person making such
payment.

 

Further, if an Amendment Event or Repayment Event occurs or the
transactions contemplated by the Purchase Agreement shall fail to close as a
result of any breach by any Initial Purchaser or as a result of any action, or
failure to act, by any Initial Purchaser thereunder or as a result of a breach
of the Counterparty’s obligations thereunder (collectively, an “Initial Purchase Event”), no payments
shall be required hereunder in connection with the Termination Event arising as
a result of such Amendment Event, Repayment Event or Initial Purchase Event.

 

“Amendment Event”
means that the Counterparty amends, modifies, supplements or obtains a waiver
of any term of the Note Indenture or the Reference Notes relating to the
principal amount, coupon, maturity, repurchase obligation of the Counterparty,
redemption right of the Counterparty, any material term relating to conversion
of the Reference Notes (including changes to the conversion price, conversion
settlement dates or conversion conditions), or any other term that would
require consent of the holders of 100% of the principal amount of the Reference
Notes to amend.

 

“Repayment Event”
means that (a) any Reference Notes are repurchased (whether in connection
with or as a result of a change of control, howsoever defined, or for any other
reason) by the Counterparty, (b) any Reference Notes are delivered to the
Counterparty in exchange for delivery of any property or assets of the
Counterparty or any of its subsidiaries (howsoever described), other than as a
result of and in connection with a Conversion Event, (c) any principal of
any of the Reference Notes is repaid prior to the Final Maturity Date, as
defined in the Note Indenture (whether following acceleration of the Reference
Notes or otherwise), provided that no payments of cash made in respect of the
conversion of a Reference Note shall be deemed a payment of principal under
this clause (c), (d) any Reference Notes are exchanged by or for the
benefit of the holders thereof for any other securities of the Counterparty or
any of its Affiliates (or any other property, or any combination thereof)
pursuant to any exchange offer or similar transaction or (e) any of the
Reference Notes is surrendered by Counterparty to the trustee for cancellation,
other than registration of a transfer of such Reference Notes or as a result of
and in connection with a Conversion Event.

 

6

 

Staggered
Settlement:

 

If Seller determines reasonably and in good faith that the number of
Shares required to be delivered to Counterparty hereunder on any Settlement
Date would exceed 8.0% of all outstanding Shares, then Seller may, by notice to
Counterparty on or prior to such Settlement Date (a “Nominal Settlement Date”), elect to
deliver the Shares comprising the related Net Share Settlement Amount on two or
more dates (each, a “Staggered Settlement
Date”) as follows:

 

1.                           in
such notice, Seller will specify to Counterparty the related Staggered
Settlement Dates (the first of which will be such Nominal Settlement Date and
the last of which will be no later than twenty (20) “trading days” (as defined
in the Note Indenture) following such Nominal Settlement Date) and the number
of Shares that it will deliver on each Staggered Settlement Date;

 

2.                           the
aggregate number of Shares that Seller will deliver to Counterparty hereunder
on all such Staggered Settlement Dates will equal the number of Shares that
Seller would otherwise be required to deliver on such Nominal Settlement Date;
and

 

3.                           the
Net Share Settlement terms will apply on each Staggered Settlement Date, except
that the Shares comprising the Net Share Settlement Amount will be allocated
among such Staggered Settlement Dates as specified by Seller in the notice
referred to in clause (1) above.

 

Notwithstanding anything herein to the contrary, solely in connection
with a Staggered Settlement Date, Seller shall be entitled to deliver Shares to
Counterparty from time to time prior to the date on which Seller would be
obligated to deliver them to Counterparty pursuant to Net Share Settlement
terms set forth above, and Counterparty agrees to credit all such early
deliveries against Seller’s obligations hereunder in the direct order in which
such obligations arise. No such early delivery of Shares will accelerate or
otherwise affect any of Counterparty’s obligations to Seller hereunder. In
addition, during the 30 day period prior to the Termination Date or any
Settlement Date, each of Seller and Counterparty shall use its reasonable
efforts to refrain from activities which could reasonably be expected to result
in Seller’s ownership of Shares exceeding 8% of all issued and outstanding
Shares. 

 

	
  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 of 1933, as amended (the “Securities Act”), and the Securities
  Exchange Act of 1934, as amended (the “Exchange Act”),
  and the rules and regulations each thereunder, including, without
  limitation, Rules 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
  Seller’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 Seller 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 Seller a resolution of
  Counterparty’s board of directors authorizing the Transaction and such other
  certificate or certificates as Seller shall reasonably request.

  

 

7

 

	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) without limiting the generality of Section 13.1
  of the Equity Definitions, Seller 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 Seller:

  	
  Chase Manhattan Bank, New York

  
	
   

  	
   

  	
   

  	
  ABA#: 021-000-021

  
	
   

  	
   

  	
   

  	
  FAO: ML Equity Derivatives

  
	
   

  	
   

  	
   

  	
  A/C: 066213118

  
					

 

	
  Bankruptcy Rights:

  	
   

  	
  In the event of Counterparty’s bankruptcy, Seller’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 Seller’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:

  	
   

  	
  The Counterparty shall have the right to assign its
  rights and obligations hereunder with respect to any portion of this
  Transaction, subject to Seller’s consent, such consent not to be unreasonably
  withheld; provided that such assignment or transfer shall be subject to
  receipt by Seller of opinions and documents reasonably satisfactory to Seller
  and effected on terms reasonably satisfactory to the Seller with respect to
  any legal and regulatory requirements relevant to the Seller; provided
  further that Counterparty shall not be released from its Settlement Notice
  obligation. Seller may transfer any of its rights or delegate its
  obligations under this Transaction with the prior written consent of
  Counterparty, which consent shall not be unreasonably withheld.

  
	
   

  	
   

  	
   

  
	
  Regulation:

  	
   

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

  

 

8

 

ISDA Master Agreement

 

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

 

Specified Entities:

 

(i) in relation to Seller, 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 the Agreement.

 

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

 

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

 

9

 

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

  
	
  Seller

  	
   

  	
  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

  

 

Additional Notice Requirements:  The Counterparty hereby agrees to promptly deliver
to Seller a copy of all notices and other communications required or permitted
to be given to the holders of any Reference Notes pursuant to the terms of the
Note Indenture on the dates so required or permitted in the Note Indenture and
all other notices given and other communications made by Counterparty in
respect of the Reference Notes to holders of any Reference Notes. The
Counterparty further covenants to Seller that it shall promptly notify Seller
of each Conversion Event (identifying in such Conversion Notice the principal
amount at maturity of Reference Notes being converted), Amendment Event
(including in such notice a detailed description of any such amendment) and
Repayment Event (identifying in such notice the nature of such Repayment Event
and the principal amount at maturity of Reference Notes being paid).

 

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

 

Address for notices or communications to Seller
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

  

 

10

 

Additionally, a copy of all notices pursuant to Sections 5, 6,
and 7 as well as any changes to Counterparty’s address, telephone number
or facsimile number should be sent to:

 

	
  Address:

  	
  GMI Counsel

  
	
   

  	
  Merrill Lynch World Headquarters

  
	
   

  	
  4 World Financial Center

  
	
   

  	
  New York, New York 10080

  
	
  Attention:

  	
  Global Equity Derivatives

  
	
  Facsimile No.:

  	
  (212) 449-6576

  
	
  Telephone No.:

  	
  (212) 449-6309

  

 

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, Seller 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 Seller nor
Counterparty is a Multibranch Party.

 

Calculation Agent. The
Calculation Agent is Seller, whose judgments, determinations and calculations
in this Transaction and any related hedging transaction between the parties
shall be made in good faith and in a commercially reasonable manner.

 

Credit Support Document.

 

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

 

Counterparty:  Not Applicable

 

Credit Support Provider.

 

With respect to Seller:  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.

 

11

 

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

 

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,”

 

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.

 

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

 

12

 

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 Seller 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
Seller) 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.

 

13

 

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:

 

14

 

Confirmed as of the date first above written:

 

AMGEN
INC.

 

 

	
  By:

  	
   

  	
   

  

Name:

Title:

 

15

 

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 Note Hedge between the
Company and ML (ML as Seller), 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.

 

16

 

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:

  	
   

  

 

17

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