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   Exhibit 10.70  

CONFIDENTIAL TREATMENT REQUESTED  

        CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND IS NOTED WITH
"[CONFIDENTIAL TREATMENT REQUESTED]." AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

COMMERCIAL SUPPLY AGREEMENT  

        This Commercial Supply Agreement (this "Agreement") is entered into and effective as of the 1st day of June 2002 ("Effective Date") by and
between Baxter Pharmaceutical Solutions LLC ("BAXTER"), a Delaware limited liability company having a place of business at 927 South Curry Pike,
Bloomington, Indiana 47403, and IDEC Pharmaceuticals Corporation ("CLIENT"), a Delaware corporation having a place of business at 3030 Callan Road, San
Diego, CA 92121. 

RECITALS  

        1.     CLIENT
is engaged in the development, bulk production, formulation, sale and distribution of pharmaceutical products; 

        2.     BAXTER
is engaged in the filling, labeling and packaging of pharmaceutical products; 

        3.     CLIENT
and BAXTER desire to have BAXTER fill, package, inspect, label, and test a certain pharmaceutical product known as Ibritumomab Tiuxetan ("Zevalin") for
distribution and sale by CLIENT. 

        NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 

Article 1, DEFINITIONS  

        As used in this Agreement, the following words and phrases shall have the following meanings: 

        1.1   "Affiliate" of a party hereto shall mean any entity that controls or is controlled by such party, or is under common
control with such party. For purposes of this definition, an entity shall be deemed to control another entity if it owns or controls, directly or indirectly, at least fifty percent (50%) of the voting
equity of another entity (or other comparable ownership interest for an entity other than a corporation). 

        1.2   "Batch" shall mean a specific quantity of a Kit Component or Kit set forth in the Project Plan for such Kit Component or
Kit that (a) is intended to have uniform character and quality within specified limits, and (b) is Produced according to a single manufacturing run during the same cycle of Production. 

        1.3   "BAXTER SOPs" shall mean BAXTER's Standard Operating Procedures. Copies of BAXTER's Standard Operating Procedures have
been provided by BAXTER to CLIENT prior to the Effective Date. BAXTER shall be1.3 responsible at all times to cause the Product-specific BAXTER SOPs to be consistent with the Product Master Plan. 

        1.4   "BLA" shall mean CLIENT's biologics license application filed with the FDA relating to the Kit and each Kit Component,
together with any amendments and supplements to such application as may be filed during the term of this Agreement. 

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        1.5   "Bulk Conjugated Antibody" shall mean the bulk form of the active ingredient, 2B8-MX-DTPA
conjugated antibody, used as the raw material in the Production of the Kit. 

        1.6   "Cancellation Fee" shall be the applicable fee payable by CLIENT for modification or cancellation of a Firm Purchase
Order set forth in Exhibit 1, as amended, supplemented or restated from time to time by mutual written agreement of the parties. 

        1.7   "CLIENT Trademarks" shall mean the proprietary mark(s) for Product owned by CLIENT. 

        1.8   "Components" shall mean all Components, including Bulk Conjugated Antibody, used by BAXTER in the Production of Products
under this Agreement. Components are listed in the Kit Component Specifications and Kit Specifications, such Components identified as Components supplied by CLIENT ("CLIENT Supplied Components") and
Components supplied by BAXTER ("BAXTER Supplied Components"). 

        1.9   "Confidential Information" shall have the meaning set forth in the Confidentiality Agreement. 

        1.10 "Confidentiality Agreement" shall mean the Confidentiality Agreement signed by CLIENT and Baxter Healthcare Corporation
on December 10, 2001 and assigned to BAXTER on or about January 1, 2002, as amended hereby and as amended, supplemented or restated hereafter from time to time by mutual written
agreement of the parties. 

        1.11 "Current Good Manufacturing Practices" or "cGMP" shall mean
(a) the good manufacturing practices required by the FDA and set forth in the FD&C Act or FDA Regulations (including without limitation 21 CFR 210 and 211), policies or guidelines, in effect at
any time during the term of this Agreement, for the Production and testing of pharmaceutical materials as applied solely to Products, and (b) the corresponding requirements of each applicable
Regulatory Authority. 

        1.12 "Delivery Date" shall mean, (i) with respect to a Kit Component, the date that such Kit Component is filled, and
(ii) with respect to a Kit, the date that such Kit is delivered to a common carrier designated by CLIENT. 

        1.13 "Effective Date" shall mean the date of this Agreement as set forth above. 

        1.14 "FDA" shall mean the United States Food and Drug Administration or any successor entity thereto. 

        1.15 "FD&C Act" shall mean the United States Federal Food, Drug and Cosmetic Act, as may be amended from time to time. 

        1.16 "Kit" shall mean one (1) reaction vial, one (1) 50mM sodium acetate vial, one (1) formulation
buffer vial (U.S. or EU as applicable) and one (1) 2B8-MX-DTPA conjugated antibody vial, labeled, packaged and assembled with secondary packaging components for use
either as an imaging agent (a "Labeled Imaging Kit") or as a therapeutic agent (a "Labeled Therapeutic Kit"), as specified in Exhibit 2, as amended, supplemented or restated from time to time
in accordance with Section 2.2.2. 

        1.17 "Kit Component" shall mean any one (1) of the individual vials specified in Exhibit 3, as amended,
supplemented or restated from time to time in accordance with Section 2.2.2, which is labeled ("Labeled Kit Component") or unlabeled ("Unlabeled Kit Component"). 

        1.18 "Kit Component Specifications" shall mean the specifications and testing to be performed for each Kit Component, set
forth on Exhibit 3, as amended, supplemented or restated from time to time in accordance with Section 2.2.2. 

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        1.19 "Kit Specifications" shall mean the specifications, and testing to be performed for each Kit, set forth on
Exhibit 2, as amended, supplemented or restated from time to time in accordance with Section 2.2.2. 

        1.20 "Long Range Forecast" shall be defined in Section 4.1. 

        1.21 "Master Batch Record" shall mean the formal set of instructions for the Production of each Kit Component or the Kit. The
Master Batch Record for the Production of the 2B8-MX-DTPA conjugated antibody vial is set forth on Exhibit 4. The Master Batch Record for each other Kit Component shall
be the formal set of instructions,1.21 for the Production of such Kit Component, that is mutually acceptable to the parties and (except as the parties otherwise mutually agree in writing) shall
contain all contents of the batch record previously provided by CLIENT to BAXTER for such Kit Component. The parties shall use commercially reasonable efforts to complete the Master Batch Record for
each other Kit Component within twenty-one (21) calendar days after the Effective Date (but in any event prior to the Production of a Stability/Validation Batch for such Kit
Component). The Master Batch Record for each other Kit Component shall be incorporated into Exhibit 4 upon their completion. The Master Batch
Record for the Kits shall be the formal set of instructions, for the Production of the Kits, that is mutually acceptable to the parties and (except as the parties otherwise mutually agree in writing)
shall contain all content of the batch record previously provided by CLIENT to BAXTER for the Kits. The parties shall use commercially reasonable efforts to complete the Master Batch Record for the
Kits within thirty (30) calendar days after the Effective Date (but in any event prior to the Production of a Kit). The Master Batch Record for the Kits shall be incorporated into
Exhibit 4 upon their completion. The Master Batch Record for each Kit Component or Kit may be amended, supplemented or restated from time to time by mutual written agreement of the parties. 

        1.22 "Produce" or "Production" shall mean the filling, packaging, inspecting,
labeling, and testing of a Kit Component or Kit by BAXTER. 

        1.23 "Products" shall mean, collectively, the Kits and the Unlabeled Kit Components. 

        1.24 "Product Master Plan" shall mean, collectively, the following: 

	•
	the
Quality Agreement;

	•
	the
Kit Specifications;

	•
	the
Kit Component Specifications;

	•
	the
Master Batch Records;

	•
	the
Project Plans;

	•
	the
Regulatory Authorities and Countries where Products will be sold, set forth on Exhibit 5, as amended, supplemented or restated from time to time in accordance
with Section 2.2.2;

	•
	the
Regulatory Plan;

	•
	the
Cancellation Fees;

	•
	the
Purchase Prices; and

	•
	the
Shipping Instructions. 

        1.25 "Project Plans" shall mean, collectively, the plans containing the parameters for the Production of Products set forth
on Exhibit 6, as amended, supplemented or restated from time to time by mutual written agreement of the parties. 

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        1.26 "Purchase Order" shall mean written orders from CLIENT to BAXTER which shall specify (a) the quantity of Kit
Component or Kit ordered, (b) Delivery Dates, and (c) delivery destinations. 

        1.27 "Purchase Price" shall mean, with respect to each Kit Component or Kit that is Produced under this Agreement and
released by BAXTER's quality assurance department in accordance with the Quality Agreement, the applicable price for such Kit Component or Kit Produced under this Agreement set forth in Part A
of Exhibit 7, as amended, supplemented or restated from time to time in accordance with Section 2.2.2 or as the parties otherwise mutually agree in writing. The Purchase Price for each
Kit Component or Kit is subject to adjustment from time to time in accordance with Section 5.3. 

        1.28 "Quality Agreement" shall mean the Intercompany Quality Agreement in the form attached as Exhibit 8 to this
Agreement entered into by BAXTER and CLIENT as of the Effective Date, as amended, supplemented or restated from time to time in accordance with Section 2.3 or as the parties otherwise mutually
agree in writing. 

        1.29 "Regulatory Approval" shall mean all authorizations by the appropriate Regulatory Authority necessary for commercial
sale in a jurisdiction, including without limitation, approval of labeling, price, reimbursement and Production. 

        1.30 "Regulatory Authority" shall mean those agencies or authorities responsible for regulation of Products in the United
States and overseas. BAXTER shall have no obligation to Produce Products in compliance with the requirements of a Regulatory Authority not specified in Exhibit 5, as amended, supplemented or
restated from time to time in accordance with Section 2.2.2. 

        1.31 "Regulatory Plan" shall mean the plan containing regulatory services and support for regulatory submissions and
supporting documentation for Production of Products attached as Exhibit 9, as amended, supplemented or restated from time to time by mutual written agreement of the parties. 

        1.32 "Released Executed Batch Record" shall mean the completed batch record (in the form of the applicable Master Batch
Record) and associated deviation reports, investigation reports, and Certificates of Analysis (provided in accordance with the Quality Agreement) created for each Batch and approved as released to
CLIENT under cGMP by BAXTER's quality assurance department. 

        1.33 "Rolling Forecast" shall be defined in Section 4.1 

        1.34 "Shipping Instructions" shall mean the shipping instructions for Product Produced under this Agreement set forth on
Exhibit 10, as amended, supplemented or restated from time to time in accordance with Section 2.2.2. 

        1.35 "Stability/Validation Batches" shall mean (a) with respect to each Kit Component (other than the reaction vial
specified in Exhibit 3 (as amended, supplemented or restated from time to time in accordance with Section 2.2.2)), the first [CONFIDENTIAL TREATMENT
REQUESTED] cGMP batches thereof Produced under this Agreement, and (b) with respect to the reaction vial specified in Exhibit 3 (as amended,
supplemented or restated from time to time in accordance with Section 2.2.2), the first cGMP batch thereof Produced under this Agreement. 

Article 2, PRODUCT MASTER PLAN  

        2.1    Product Master Plan.    Prior to the Effective Date, the parties have mutually agreed
upon each of the exhibits attached to this Agreement comprising the Product Master Plan. 

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        2.2    Amendment of Product Master Plan.    

        2.2.1 Except
as otherwise set forth in Sections 2.2.2 and 2.3, the Product Master Plan may be amended from time to time, as the parties experience with the
Production, testing and use of the applicable Product warrants, only upon mutual written agreement of CLIENT and BAXTER. 

        2.2.2 At
the reasonable request of CLIENT, the parties shall negotiate in good faith modification(s) to the Kit Specifications and/or Kit Component Specifications to address
regulatory concerns raised by any Regulatory Authority or reasonably raised by CLIENT. At the reasonable request of CLIENT, the parties shall negotiate in good faith modification(s) to the list of
countries where Products will be sold and/or the Regulatory Authorities. The Shipping Instructions may be amended from time to time, in the reasonable discretion of CLIENT effective upon written
notice to BAXTER. In the event of any modification(s) to the Kit Component Specifications, Kit Specifications, the Shipping Instructions, the list of countries where Products will be sold and/or the
Regulatory Authorities that result in an increase/decrease in the cost to BAXTER to Produce a Kit Component or Kit, then the parties shall negotiate in good faith an adjustment to the Purchase Price
for such Kit Component or Kit to reflect such increased/decreased cost. 

        2.3    Quality Agreement.    The effectiveness of this Agreement is conditioned upon the
parties duly executing and delivering the Quality Agreement on or before the Effective Date. At the reasonable request of either party, the parties shall negotiate in good faith amendment(s) to the
Quality Agreement (a) to address matters specific to the Production of Product for sale and use outside the United States, and (b) to address regulatory concerns raised by any Regulatory
Authority or reasonably raised by either party. 

        2.4    No Amendment of Agreement.    In the event that the terms of the Product Master Plan or
Quality Agreement are inconsistent with the terms of this Agreement, this Agreement shall control, unless otherwise explicitly agreed to in writing by the parties. The Product Master Plan and Quality
Agreement shall be deemed to be incorporated herein and by reference and made a part of this Agreement. 

ARTICLE 3, PURCHASE AND SUPPLY OF PRODUCT  

        3.1    Agreement to Purchase and Supply.    Pursuant to the terms and conditions of this
Agreement, CLIENT shall purchase from BAXTER, and BAXTER shall Produce and deliver to CLIENT, such quantities of Products as ordered by CLIENT in accordance with Sections 3 and 4 of this
Agreement. 

        3.2    Reproduction, Rework or Reprocessing.    If any reprocessing, rework, or reproduction
is required in order to meet the Kit Component Specifications and/or Kit Specifications, BAXTER shall conduct such reprocessing, rework, or reproduction in compliance with cGMPs and the BLA. Any
reprocessing, rework, reproduction, or change which is not covered by the BLA must be approved in writing by CLIENT prior to implementation. All costs of any such reprocessing, rework, reproduction,
or change shall be allocated in accordance with Sections 7.2, 13.3 and 13.4. 

        3.3    Bulk Conjugated Antibody and Other Components Delivery.    CLIENT,  [CONFIDENTIAL TREATMENT REQUESTED], shall deliver or
cause to be delivered, (a) a reasonably sufficient amount of Bulk
Conjugated Antibody and/or other CLIENT Supplied Components, and (b) any applicable certificate of analysis therefor, all to be delivered to BAXTER at least twenty one (21) calendar days
in advance of the scheduled date for the applicable Production. Except as may specifically be set forth in the Product Master Plan, on receipt of the Bulk Conjugated Antibody and/or other CLIENT
Supplied Components as set forth above, BAXTER's sole obligation with respect to evaluation of the Bulk Conjugated Antibody and other 

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CLIENT
Supplied Components shall be to review the accompanying certificate of analysis to confirm that the Bulk Conjugated Antibody and/or other CLIENT Supplied Components (as applicable) conform with
the Kit Specifications and/or Kit Component Specifications (as applicable). CLIENT at all times shall retain title to all Bulk Conjugated Antibody and other CLIENT Supplied Components, and all
accompanying documentation supplied by CLIENT, together with all vials filled with Bulk Conjugated Antibody or other CLIENT Supplied Components. 

        3.4    Material Safety.    CLIENT shall provide BAXTER a Material Safety Data Sheet for all
Bulk Conjugated Antibody and other CLIENT Supplied Components delivered to BAXTER. BAXTER shall immediately notify CLIENT of any unusual health or environmental occurrence relating to a Product,
including, but not limited to any claim or complaint by any employee of BAXTER or any of its Affiliates or third party that the operations of BAXTER pursuant to this Agreement have resulted in any
adverse health or safety effect on an employee or third party. BAXTER agrees to advise CLIENT immediately of any safety or toxicity problems of which it becomes aware regarding a Product. 

        3.5    Vendor and Supplier Audit and Certification.    CLIENT shall be solely responsible for
certifying and auditing all vendors and suppliers of Bulk Conjugated Antibody and Components. All vendors and suppliers of Bulk Conjugated Antibody and Components shall be subject to CLIENT's prior
written approval, and may be changed by CLIENT from time to time upon sixty (60) days prior written notice to BAXTER. To the extent such changes result in increased cost to BAXTER, BAXTER may
adjust the Purchase Price for Product in accordance with the mechanism set forth in Section 5.3. 

        3.6    Purchase of Materials.    BAXTER shall purchase, at BAXTER's expense, all packaging and
filling materials listed in the Product Master Plan, primary container Components and secondary packaging materials required to Produce Product. BAXTER shall control packaging materials listed in the
Product Master Plan and shall assist CLIENT with evaluation and purchase of modified materials in the event that CLIENT requests, pursuant to Section 2.2, a packaging change in the Kit
Specifications and/or Kit Component Specifications. BAXTER shall not initiate any changes to materials without written approval from CLIENT. 

        3.7    BAXTER Supplied Components.    BAXTER will purchase the BAXTER Supplied Components in
quantities sufficient to meet CLIENT's Purchase Orders for Kit Components or Kits consistent with Section 4. The [CONFIDENTIAL TREATMENT
REQUESTED] will be [CONFIDENTIAL TREATMENT REQUESTED]. Risk of loss and damage to BAXTER
Supplied Components shall [CONFIDENTIAL TREATMENT REQUESTED]. 

        3.8    Importer of Record.    In the event any material or equipment to be supplied by CLIENT,
including without limitation CLIENT Supplied Components and Bulk Conjugated Antibody, is imported into the United States for delivery to BAXTER ("Imported Goods"), such Imported Goods shall be
imported [CONFIDENTIAL TREATMENT REQUESTED]. CLIENT shall be the "Importer of Record" of such Imported Goods. As the Importer of
Record, CLIENT shall be responsible for (a) customs and other regulatory clearance of Imported Goods, (b) [CONFIDENTIAL TREATMENT
REQUESTED] in connection with the importation and delivery of the Imported Goods, and (c) keeping all records, documents, correspondence and tracking
information required by applicable laws, rules and regulations arising out of or in connection with the importation or delivery of the Imported Goods. 

        3.9    Storage.    

        3.9.1    Product Storage.    In no event shall BAXTER be required to store any Kit Component
or Kit for more than [CONFIDENTIAL TREATMENT REQUESTED] after such 

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Kit
Component or Kit is released by BAXTER's quality assurance department, without BAXTER's prior written consent and CLIENT's agreement to reimburse BAXTER for at the rate set forth in Part B
of Exhibit 7, as amended, supplemented or restated from time to time in accordance with Section 2.2.2 or as the parties otherwise mutually agree in writing. 

        3.9.2    Bulk Conjugated Antibody and Other CLIENT Supplied Component Storage.    In no event
shall BAXTER be required to store more than a [CONFIDENTIAL TREATMENT REQUESTED] supply of Bulk Conjugated Antibody or other
CLIENT Supplied Components as calculated using the most recent Rolling Forecast without the prior written consent of BAXTER and CLIENT's agreement to reimburse BAXTER at the rate set forth in
Part B of Exhibit 7, as amended, supplemented or restated from time to time in accordance with Section 2.2.2 or as the parties otherwise mutually agree in writing. 

        3.9.3    Third Party Storage.    BAXTER shall be permitted to store Kit Components and Kits  [CONFIDENTIAL TREATMENT REQUESTED] in
third party storage facilities only to the extent permitted in the applicable Project
Plans, provided in each case that (a) such third 3.9.3 party shall have been previously approved in writing by CLIENT and (b) CLIENT shall have the right to visit, inspect and audit such
third party's facilitates and records used in or that otherwise directly affect the storage of any Kit Component or Kit. 

Article 4, FORECASTS, ORDERS, AND CAPACITY  

        4.1    Forecasts and Order Limits.    

        4.1.1 Prior
to July 10 of each calendar year after the Effective Date, CLIENT will provide to BAXTER in writing a [CONFIDENTIAL
TREATMENT REQUESTED] forecast for each calendar year during the remainder of the Term of CLIENT's estimated orders for Products (the "Long Range Forecast"). BAXTER
specifically agrees that such Long Range Forecasts submitted by CLIENT will be for general planning purposes only, and shall not be binding on CLIENT or BAXTER. 

        4.1.2 Prior
to the [CONFIDENTIAL TREATMENT REQUESTED] of each calendar quarter after the Effective
Date, CLIENT will provide BAXTER in writing a [CONFIDENTIAL TREATMENT REQUESTED] rolling forecast of CLIENT's forecasted orders
for Products (the "Rolling Forecast"). CLIENT shall not [CONFIDENTIAL TREATMENT REQUESTED] the quantity forecasted for the  [CONFIDENTIAL TREATMENT REQUESTED] calendar quarter of each Rolling Forecast to more than  [CONFIDENTIAL TREATMENT REQUESTED] of the quantity forecasted for the [CONFIDENTIAL
TREATMENT REQUESTED] calendar quarter of the immediately preceding Rolling Forecast, and shall not decrease the quantity forecasted for the  [CONFIDENTIAL TREATMENT REQUESTED]
calendar quarter of each Rolling Forecast to less than  [CONFIDENTIAL TREATMENT REQUESTED] of the quantity forecasted for the [CONFIDENTIAL
TREATMENT REQUESTED] calendar quarter of the immediately preceding Rolling Forecast. 

        4.1.3 BAXTER
shall supply CLIENT with the quantity of each Product ordered by CLIENT for a calendar quarter, unless the quantity ordered for such calendar quarter exceeds  [CONFIDENTIAL TREATMENT REQUESTED] of the
quantity of such Product forecasted for such calendar quarter in the most recent
Rolling Forecast, in which event BAXTER shall use commercially reasonable efforts to supply quantities in excess of [CONFIDENTIAL TREATMENT
REQUESTED] of the quantity of such Product forecasted for such calendar quarter in the most recent Rolling Forecast. In no event shall CLIENT order and purchase in
any calendar quarter less than [CONFIDENTIAL TREATMENT REQUESTED] of the quantity of such Product forecasted for such calendar
quarter in the most recent Rolling Forecast (the "Minimum Quantity"). In the event CLIENT orders and purchases less than the 

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Minimum
Quantity of any Product in any calendar quarter, then within thirty (30) calendar days following the end of such calendar quarter, CLIENT shall pay to BAXTER  [CONFIDENTIAL TREATMENT REQUESTED].
Notwithstanding anything to the contrary in this Agreement, CLIENT's minimum purchase
obligations under this Agreement, other than with respect to the Stability/Validation Batches of Product under this Agreement, shall not commence until the date on which CLIENT obtains the applicable
Regulatory Approval to sell Product Produced by BAXTER under this Agreement. Additionally, notwithstanding anything to the contrary in this Agreement, the limitations on CLIENT's ability to adjust
forecasts and CLIENT's minimum purchase obligations under this Agreement shall terminate in the event of any one or more of the following events: (a)  [CONFIDENTIAL TREATMENT REQUESTED] of this
Agreement, (b) [CONFIDENTIAL TREATMENT
REQUESTED] in accordance with Section 4 (subject to the limitations on BAXTER's obligations set forth in Section 4);
(c) [CONFIDENTIAL TREATMENT REQUESTED] directly affecting the ability of BAXTER to timely Produce and deliver Product
hereunder which is [CONFIDENTIAL TREATMENT REQUESTED]; (d) the Yield (as defined in Section 13.3.5) for any  [CONFIDENTIAL TREATMENT REQUESTED]
falls below [CONFIDENTIAL TREATMENT
REQUESTED]; and/or (e) the occurrence of an [CONFIDENTIAL TREATMENT REQUESTED]. 

        4.1.4 Notwithstanding
anything to the contrary in the preceding Sections 4.1.2 and 4.1.3, the aggregate quantity of Product forecasted in a Rolling Forecast provided by
CLIENT for any calendar quarter following the first anniversary of the Effective Date shall not exceed [CONFIDENTIAL TREATMENT
REQUESTED] of the aggregate quantity of Product forecasted in the Rolling Forecast provided by CLIENT for the corresponding calendar quarter of the immediately
preceding calendar year. 

        4.2    Purchase Orders.    Prior to or on the  [CONFIDENTIAL TREATMENT REQUESTED], CLIENT shall submit Purchase Orders to BAXTER
covering CLIENT's purchases of Kit Components
and Kits pursuant to this Agreement. CLIENT shall not, without the written consent of BAXTER, designate (a) a Delivery Date in a Purchase Order for Kits earlier than  [CONFIDENTIAL TREATMENT REQUESTED] from the date CLIENT submits the Purchase Order therefor, provided that CLIENT has satisfied
its obligations under this Agreement to enable sufficient Kit Components to be available, or (b) a Delivery Date in a Purchase Order for Kit Components earlier than  [CONFIDENTIAL TREATMENT REQUESTED] from the date CLIENT submits the Purchase Order. Within  [CONFIDENTIAL TREATMENT REQUESTED] after the receipt of a Purchase Order, BAXTER shall provide a confirmation of receipt of such
Purchase Order setting forth the Delivery Date that BAXTER will meet and setting forth BAXTER's filling date for such order. Upon CLIENT's receipt of the confirmation, such Purchase Order shall become
a "Firm Purchase Order." If BAXTER is unable to meet the specified Delivery Date, except when caused by CLIENT's delay in delivery of Bulk Conjugated Antibody or other CLIENT Supplied Components,
BAXTER shall so notify CLIENT and provide to CLIENT an alternative Delivery Date which shall not be more than [CONFIDENTIAL TREATMENT
REQUESTED] later than the initial Delivery Date designated by CLIENT in its Purchase Order. In the event that CLIENT modifies or cancels a Firm Purchase Order
without BAXTER's written consent, CLIENT shall pay the Cancellation Fees as set forth in the Product Master Plan. To the extent of any conflict between Purchase Orders submitted by CLIENT and this
Agreement, this Agreement shall control. 

        4.3    Bulk Conjugated Antibody and Other Component Delivery Delays.    BAXTER shall have no
responsibility for delays in delivery of Product caused by delays in receipt of Bulk Conjugated Antibody or other CLIENT Supplied Components. BAXTER shall have no responsibility for delays in delivery
of Product to the extent 4.3 caused by [CONFIDENTIAL TREATMENT REQUESTED], provided that
(a) [CONFIDENTIAL TREATMENT REQUESTED]. 

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Notwithstanding
anything in this Agreement to the contrary, [CONFIDENTIAL TREATMENT REQUESTED] be paid promptly to BAXTER within
thirty (30) calendar days following receipt by CLIENT of an invoice therefor, [CONFIDENTIAL TREATMENT REQUESTED]. 

Article 5, PRICE  

        5.1    Kit Component and Kit Purchase Price.    The price to be paid by CLIENT for each Kit
Component or Kit that is Produced under this Agreement and released by BAXTER's quality assurance department in accordance with the Quality Agreement shall be the applicable Purchase Price therefor,
as set forth in Part A of Exhibit 7, as amended, supplemented or restated from time to time in accordance with Section 2.2.2 or as the parties otherwise mutually agree in writing. 

        5.2    Process Development, Validation, Regulatory and Other Services Price.    The price to
be paid by CLIENT for process development, validation, regulatory and other services (which price shall exclude the Purchase Price for each Kit Component or Kit that is Produced under this Agreement
and released by BAXTER's quality assurance department in accordance with the Quality Agreement) shall be set forth in Part B of Exhibit 7, as amended, supplemented or restated from time
to time in accordance with Section 2.2.2 or as the parties otherwise mutually agree in writing. 

        5.3    Purchase Price Adjustment.    Upon the  [CONFIDENTIAL TREATMENT REQUESTED] anniversary of the date of this Agreement and on
each anniversary thereafter, the Purchase
Price of each Kit Component or Kit may be adjusted to reflect changes in the cost of BAXTER Supplied Components and labor costs paid by BAXTER in connection with the Production of such Kit Component
or Kit, not to exceed the change in the [CONFIDENTIAL TREATMENT REQUESTED] for which such  [CONFIDENTIAL TREATMENT REQUESTED] is available. BAXTER shall
provide CLIENT with written notice, which notice shall set forth
the amount of such Purchase Price adjustment. BAXTER shall provide such notice not later than thirty (30) calendar days following each such anniversary date to be effective, and any increase
set forth in such notice shall be effective for Purchase Orders received by BAXTER after such anniversary date. 

Article 6, SHIPMENT AND INVOICING  

        6.1    Delivery Terms.    BAXTER shall ship Products in accordance with the Product Master
Plan, and deliver Products to CLIENT or to a location designated by CLIENT in applicable Purchase Order [CONFIDENTIAL TREATMENT
REQUESTED] BAXTER's facility in Bloomington, Indiana freight collect, by a common carrier designated by CLIENT in Shipping Instructions, at  [CONFIDENTIAL TREATMENT REQUESTED]
expense; provided, however, subject to Article 13,  [CONFIDENTIAL TREATMENT REQUESTED] for the loading of Products on departure and  [CONFIDENTIAL TREATMENT REQUESTED]
 procure, at its cost, insurance covering damage or loss to Products during shipping.
 

        6.2    Exporter of Record.    CLIENT shall be the exporter of record for any Product shipped
out of the United States, as CLIENT remains the owner of such Product. CLIENT warrants that all shipments of any Product exported from the United States will be made in compliance with all applicable
United States export laws and regulations and all applicable import laws and regulations into the country of deportation. 

[CONFIDENTIAL TREATMENT REQUESTED] necessary for the exportation from the United States. CLIENT shall select and pay the freight
forwarder who shall solely be CLIENT's agent. CLIENT and its freight forwarder shall be responsible for preparing and filing the Shipper's Export Declaration and any other applications required for
the export. BAXTER shall cooperate with CLIENT by providing reasonable assistance in preparing and filing any necessary documents to support CLIENT's import and export applications. 

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        6.3    Foreign Corrupt Practices Act.    CLIENT acknowledges it is not the agent of BAXTER and
represents and warrants that it has not, and covenants that it will not, pay anything of value to any government employee in connection with the resale of Products. 

        6.4    Payment Terms.    BAXTER shall invoice CLIENT for each Kit Component or Kit that is
Produced under this Agreement and released by BAXTER's quality assurance department in accordance with the Quality Agreement at the time such Kit Component or Kit is so released; provided, however,
that the stated due date of each such invoice shall not be prior to the later of (a) [CONFIDENTIAL TREATMENT REQUESTED]
following the date of CLIENT's receipt of the applicable Product samples, (b) [CONFIDENTIAL TREATMENT REQUESTED]
following the date of CLIENT's receipt of the applicable Released Executed Batch Record(s) and related documentation in accordance with the Product Master Plan, or
(c) [CONFIDENTIAL TREATMENT REQUESTED] following the date of the invoice. BAXTER shall invoice CLIENT for all process
development, validation and regulatory services (if any) monthly in arrears, which invoices shall set forth in reasonably specific detail the services performed and the costs therefor. CLIENT shall
pay all amounts invoiced on or before the stated due date of the applicable invoice, provided that on the date of such invoice BAXTER shall have (a) sent by facsimile such invoice to CLIENT to
such facsimile number as most recently requested in writing by CLIENT for such purpose, and (b) deposited the original of such invoice in the United States mail, first class postage prepaid and
addressed to CLIENT at such address as most recently requested in writing by CLIENT for such purpose. Notwithstanding anything to the contrary in this Section, the  [CONFIDENTIAL TREATMENT REQUESTED].

Payments
shall be made in U.S. dollars by check delivered to BAXTER, or by wire transfer. Each invoice shall be payable by CLIENT in accordance with the terms noted above. Any payment due under this
Agreement not received within the times noted above shall bear interest at the lesser of
(a) the maximum rate permitted by law, or (b) 1.5% per month on the outstanding balance compounded monthly. 

        6.5    Default in Payment Obligations.    In addition to all other remedies available to
BAXTER in the event of a CLIENT default, if CLIENT fails to make payments as required hereunder of amounts invoiced (other than amounts contested by CLIENT in good faith), BAXTER may  [CONFIDENTIAL TREATMENT REQUESTED]
 until the amount invoiced (other than amounts contested by CLIENT in good faith) is paid in
full, [CONFIDENTIAL TREATMENT REQUESTED] the foregoing terms of payment, place the account on a letter of credit basis, require  [CONFIDENTIAL TREATMENT REQUESTED] of Product until the amount invoiced (other than amounts contested by CLIENT in good faith)
is [CONFIDENTIAL TREATMENT REQUESTED] or until [CONFIDENTIAL TREATMENT
REQUESTED] to BAXTER. For purposes of this Section 6.5 only, [CONFIDENTIAL TREATMENT
REQUESTED] shall not constitute good faith grounds for contesting an amount invoiced. 

Article 7, ACCEPTANCE OF PRODUCT  

        7.1    Product Conformity.    Within the later of  [CONFIDENTIAL TREATMENT REQUESTED] following the date of CLIENT's receipt of
Product samples or  [CONFIDENTIAL TREATMENT REQUESTED] following the date of CLIENT's receipt of the applicable Released Executed Batch Record(s)
and related documentation in accordance with the Product Master Plan, CLIENT shall have the right to determine whether Product conforms to cGMP, to all other applicable United States laws and
regulations and all foreign laws and regulations of the countries listed in Exhibit 5 (as amended, supplemented or restated from time to time in accordance with Section 2.2.2), to the
applicable Kit Component Specifications and/or Kit Specifications, and to the applicable Project Plan(s) and the Quality Agreement (collectively the "Product Requirements"). Notwithstanding the
foregoing, if CLIENT has conducted at least one test of the applicable Batch 

10

 

and
in good faith has requested in writing, within the time period specified in Section 7.1, additional time to perform additional testing, then such period shall be extended as reasonably
necessary for CLIENT, or BAXTER (if requested by CLIENT), to perform such additional testing. 

        7.1.1 If
(a) any Product conforms to the Product Requirements, or (b) CLIENT fails to notify BAXTER within the time period specified in Section 7.1 that
any Product does not conform to the Product7.1.1 Requirements, then CLIENT shall be deemed to have accepted such Product and waived its right to revoke acceptance. 

        7.1.2 If
CLIENT believes any Product does not conform to the Product Requirements, it shall give written notice to BAXTER specifying the manner in which such Product fails
to meet the Product Requirements. Guidelines for resolving any disputed claims regarding conformity of Product are set forth in Section 7.1.3. 

        7.1.3 If
the parties dispute whether any Product is conforming or non-conforming, the samples of Product will be submitted to a mutually acceptable laboratory or
consultant for resolution, whose determination of conformity or non-conformity, and the cause thereof of non-conformity, shall be binding upon the parties. The
non-prevailing party shall bear the costs of such laboratory or consultant, except as set forth in Section 7.2.3. 

        7.2    Remedies for Non Conforming Product.    

        7.2.1 In
the event BAXTER agrees that any Product is non-conforming or the laboratory determines that the shipment of Product is non-conforming,
BAXTER shall replace such non-conforming Product within the latter of (a) [CONFIDENTIAL TREATMENT REQUESTED]
from receipt of the applicable replacement CLIENT Supplied Component(s) from CLIENT or (b) [CONFIDENTIAL TREATMENT
REQUESTED] from the date of determination by the third party of non-conformity or agreement by BAXTER of such non-conformity. 

        7.2.2 CLIENT
shall [CONFIDENTIAL TREATMENT REQUESTED], including the  [CONFIDENTIAL TREATMENT REQUESTED] and the [CONFIDENTIAL TREATMENT
REQUESTED] therefor, if the nonconformance results from the [CONFIDENTIAL TREATMENT
REQUESTED] to conform with the applicable Kit Specifications and/or Kit Component Specifications [CONFIDENTIAL TREATMENT
REQUESTED] to BAXTER. 

        7.2.3 In
the event BAXTER agrees, or the laboratory or consultant determines, that Product is non conforming [CONFIDENTIAL TREATMENT
REQUESTED], then [CONFIDENTIAL TREATMENT REQUESTED], subject to, and except as otherwise set
forth in, the provisions of Article 13. 

        7.3    Non Conforming Bulk Conjugated Antibody or Other CLIENT Supplied Components.    If
Product is rejected by CLIENT, and such Product's failure to meet the Product Requirements is the result of non-conforming Bulk Conjugated Antibody or other CLIENT Supplied Component(s),
then such non-conformity shall be deemed not to be non-conforming as a result of the negligence, omission or willful misconduct of BAXTER or BAXTER's breach of its warranties
or obligations under this Agreement. 

Article 8, TERM AND TERMINATION  

        8.1    Term.    This Agreement shall be effective on the Effective Date and shall continue for
sixty (60) months thereafter (the "Term"), unless earlier terminated in accordance with the terms of this Agreement. 

        8.2    Termination for Breach.    Either party may terminate this Agreement upon the material
breach of this Agreement by the other party if such material breach is not cured by the breaching party within ten (10) calendar days for monetary defaults, and thirty (30) calendar days
for 

11

 

non-monetary
defaults (or such additional time reasonably necessary to cure such non-monetary default provided the breaching party has commenced a cure within the thirty
(30) calendar day period and is diligently pursuing completion of such cure) after receipt by the breaching party of written notice of such default. In the event that the Production or sale of
any Product is enjoined due to the alleged infringement by either party of the proprietary rights of a third party such occurrence shall not be deemed a breach of this Agreement by CLIENT or BAXTER. 

        8.3    Termination by CLIENT.    CLIENT may terminate this Agreement, at its option in its
sole discretion, (a) if CLIENT fails to obtain the applicable Regulatory Approval to sell Product Produced by BAXTER under this Agreement within twelve (12) months following the
Effective Date due in whole or in part to any act or omission of BAXTER, or (b) upon the withdrawal of the Kit from the market and termination of the marketing and sales of the Kit by CLIENT. 

        8.4    Additional Rights and Remedies.    Subject to Section 13.1, termination under
this Section 8 shall be in addition to the other rights and remedies of the terminating party. Termination of this Agreement for any reason shall not relieve any party of any obligations
accruing prior to such termination. 

        8.5    Non-cancelable Costs and Expenses.    In the event of the termination of
this Agreement, except by CLIENT as a result of a breach by BAXTER under Section 8.2, CLIENT shall (a) reimburse BAXTER for all BAXTER Supplied Components ordered prior to termination
and not cancelable at no cost to BAXTER, and (b) pay BAXTER the applicable Cancellation Fees (if any) as set forth in the Product Master Plan. In addition, in the event of termination or
cancellation for any reason, CLIENT shall pay the applicable Purchase Prices described in Section 5 for (i) all work-in-process commenced by BAXTER and
(ii) all finished goods of BAXTER. BAXTER promptly shall deliver such materials to CLIENT pursuant to Section 6.1. CLIENT
shall make payment for all expenses described in this Section 8.5 within thirty (30) calendar days from the date of receipt by CLIENT of the applicable invoice. 

        8.6    Termination Damages.    In addition to the costs and expenses payable in
Section 8.5, (a) in the event of termination of this Agreement by BAXTER under Section 8.2 or (b) in the event of termination of this Agreement by CLIENT under
clause (b) of Section 8.3, CLIENT shall pay BAXTER [CONFIDENTIAL TREATMENT REQUESTED] of the Purchase Price for
the aggregate quantity of Product forecasted by CLIENT in the most recent Rolling Forecast. 

        8.7    Survival.    Termination, expiration, cancellation or abandonment of this Agreement
through any means or for any reason, except as set forth in Section 13.1, shall be without prejudice to the rights and remedies of either party with respect to any antecedent breach of any of
the provisions of this Agreement. The provisions of Sections 8, 12, 13, 14, 15, 16, 17 and 18 hereof shall survive expiration or termination of this Agreement. 

        8.8    Files and Records.    Upon the expiration or termination of this Agreement, BAXTER
promptly shall make available to CLIENT copies of all manufacturing and process development documents and records relating to Product, shall store the originals or electronic copies of such documents
and records according to cGMPs in a safe and secure facility for at least two (2) years after the expiration date of the last Batch Produced by BAXTER under this Agreement, and shall permit the
FDA or other Regulatory Authorities access to such documents and records to the extent requested thereby. For a period of twelve (12) months following expiration or termination of this
Agreement, BAXTER shall make available to CLIENT for review, from the DMF, any non-confidential information contained therein that is reasonably related to Product that may be used by
CLIENT to support any investigational studies or commercial marketing of Product. 

12

 

Article 9, PRODUCTION OF PRODUCT  

        9.1    Production.    BAXTER shall Produce Product in accordance with the Product
Requirements. Subject to compliance with reasonable rules and regulations of BAXTER relating to confidentiality, safety and security, CLIENT shall have the right to access the BAXTER facilities
directly affecting the Production of Product, and all applicable records related thereto, to oversee Production of Product in accordance with the Quality Agreement and BAXTER's standard visitation
policy. CLIENT shall have the right to oversee each Production run of Product (from Component preparation through final labeling and assembly) in accordance with the Quality Agreement. CLIENT shall
have the right to render technical advice and direction to BAXTER regarding Production of Product pursuant to their involvement in the
generation of the Master Batch Record or direct communication with the Project Manager or Technical Service Representative. BAXTER promptly shall implement all reasonable advice and direction provided
that such advice and direction is not inconsistent with the Product Master Plan, BAXTER SOPs, and cGMPs. If CLIENT observes or discovers variances from established standards and methods of9.1
Production of Product, CLIENT shall give written notice thereof to BAXTER, and upon receipt of any such notice, BAXTER promptly shall take all appropriate remedial or corrective action and give
written notice to CLIENT describing in reasonable detail such actions taken. If BAXTER disagrees with any such advice and direction, the parties shall discuss in good faith an appropriate resolution. 

        9.2    Audits.    CLIENT shall have the right to audit BAXTER's facilities in accordance with
the Quality Agreement. Such audits shall be scheduled at mutually agreeable times upon reasonable advance written notice to BAXTER, shall be at CLIENT's expense, and shall not occur more than one
(1) time per calendar year unless required by BAXTER's compliance status or CLIENT's obligations as a license holder. If CLIENT requests additional audits which are not due to BAXTER's
compliance status and BAXTER agrees to such audits, CLIENT will incur fees as reasonably determined by BAXTER. Such fees shall be paid promptly upon completion of such audits. In connection with
performing such audits, CLIENT shall comply with all reasonable rules and regulations promulgated by BAXTER relating to confidentiality, safety and security. All information disclosed or reviewed in
such inspections shall be deemed to be the property of BAXTER and BAXTER Confidential Information (subject to the exceptions set forth in Section 1 of the Confidentiality Agreement). 

        9.3    Testing.    In accordance with the Quality Agreement, BAXTER shall test, or cause to be
tested by third party testing facilities audited by BAXTER, in accordance with the Product Requirements, each Batch of Product Produced pursuant to this Agreement before delivery to CLIENT. A
certificate of analysis for each Batch of Product delivered to CLIENT shall set forth the items tested by BAXTER, specifications, and test results in accordance with the Quality Agreement. BAXTER
shall send, or cause to be sent, such certificates along with one (1) copy of the Released Executed Batch Record to CLIENT prior to or at the same time of shipment of Product to CLIENT. 

As
required by the FDA, CLIENT shall assume full responsibility for final release of each lot of Product. 

        9.4    Permits and Licenses.    Client shall have sole responsibility, at its expense, for
obtaining all permits and licenses necessary or required for the sale, marketing and commercialization of each Product Produced by BAXTER hereunder. BAXTER shall be responsible,  [CONFIDENTIAL TREATMENT REQUESTED]
, to obtain and maintain all permits and licenses required for it to carry out its regulatory
and Production obligations hereunder. BAXTER, at CLIENT's request [CONFIDENTIAL TREATMENT REQUESTED], shall cooperate with
CLIENT by assisting in preparing and filing any necessary documents to support CLIENT's applications for permits and licenses. 

13

  

        9.5    Regulatory Requirements.    Each party promptly shall notify the other of new
regulatory requirements of which it becomes aware which are relevant to the Production of a Product under this Agreement and which are required by the FDA, any other applicable Regulatory Authority or
other applicable laws or governmental regulations, and shall confer with each other with respect to the best means to comply with such requirements. Notwithstanding anything to the contrary in this
Agreement, BAXTER shall be responsible for its compliance with all regulatory requirements of the United States and all foreign countries listed in Exhibit 5 (as amended, supplemented or
restated from time to time in accordance with Section 2.2.2) that are applicable to BAXTER's facilities and BAXTER's activities in Production, whether or not CLIENT is aware of such
requirements and has failed to give notice to BAXTER. 

        9.6    Drug Master File.    In accordance with the Product Master Plan, BAXTER shall file and
maintain the appropriate Drug Master File ("DMF") and related reference applications (e.g. Site Master File) for its Production of each Product hereunder in accordance with 21 CFR 314.420, as may be
amended from time to time, at BAXTER's expense. 

        9.7   Changes in Manufacturing

        9.7.1 Changes to Product Master Plan. BAXTER agrees to inform CLIENT within [CONFIDENTIAL
TREATMENT REQUESTED] of the result of any regulatory development that directly affect the Production of a Product or changes to Product-specific BAXTER SOPs. BAXTER
shall give written notice to CLIENT of any such changes, and CLIENT and BAXTER will review such development or changes in accordance with the Quality Agreement; provided, however, that
(a) BAXTER shall assure that all such changes to the Product-specific BAXTER SOPs are consistent with the Product Master Plan unless the parties otherwise expressly agrees in writing, and
(b) any changes to the Product Master Plan shall be made only in accordance with Section 2.2. 

        9.7.2 Product-Specific Changes. If facility, equipment, process or system changes are required of BAXTER as a result of
requirements set forth by the FDA or any other Regulatory Authority, and such regulatory changes apply primarily to the Production and supply of a Product, then CLIENT and BAXTER will review such
requirements and agree in writing to such regulatory changes in accordance with the Quality Agreement, and CLIENT shall bear [CONFIDENTIAL TREATMENT
REQUESTED] of the reasonable costs thereof; provided, however, that (a) BAXTER shall assure that all such changes to the Product-specific BAXTER SOPs are
consistent with the Product Master Plan unless the parties otherwise expressly agree in writing, and (b) any changes to the Product Master Plan shall be made only in accordance with
Section 2.2. 

        9.8   Equipment Expenses. If BAXTER is required to obtain specialized equipment in order to Produce a Product for CLIENT, the
costs of such equipment shall be paid by CLIENT. BAXTER shall advise CLIENT of the specialized equipment required and the estimated costs associated with the purchase and installation of such
equipment. If CLIENT, in its sole discretion, determines that it does not desire to pay the costs for such equipment, then CLIENT shall have the right to terminate this Agreement with respect to such
Product for which such equipment is required only, on ninety (90) calendar days prior written notice to BAXTER. CLIENT shall be invoiced for all approved costs after installation and acceptance
of such equipment by BAXTER, and CLIENT shall pay all each such invoice within thirty (30) calendar days following receipt by CLIENT thereof. 

        9.9   Ownership and Use of Equipment. All such equipment paid for by CLIENT shall be owned solely by CLIENT; provided, however,
that such equipment shall remain at BAXTER's facility used for Production of Products and shall be available for BAXTER's use solely in connection with the Production of Products for CLIENT. BAXTER
shall not use such equipment 

14

 

for
any other purpose, shall not transfer such equipment to any third party or other location, shall not purport to convey or grant to any third party an interest in such equipment, and shall take no
action inconsistent with CLIENT's ownership of such equipment. During the term of this Agreement, BAXTER shall be responsible for maintaining, servicing and insuring (including by means of
self-insurance) such equipment to the same extent and in the same manner as BAXTER maintains, services and insures (including by means of self-insurance) its own equipment.
BAXTER shall maintain appropriate records regarding the use, maintenance and service of such equipment. Upon termination of this Agreement, BAXTER promptly shall deliver such equipment to CLIENT at
such location as CLIENT reasonably requests. 

Article 10, REGULATORY  

        10.1 Regulatory Approvals. In accordance with the Product Master Plan, CLIENT will diligently pursue Regulatory Approval of
marketing licenses for Products Produced by BAXTER hereunder. CLIENT will advise BAXTER of document requirements in support of BLA and similar applications required of foreign governments and agencies
including amendments, license applications, supplements and maintenance of such. BAXTER will provide documents and assist CLIENT in preparation of submissions to Regulatory Authorities (both U.S and
foreign) designated by CLIENT in support of CLIENT's BLAs, similar applications required of foreign governments and licenses. All regulatory submission preparation and maintenance performed by BAXTER
for CLIENT shall be specified in the Product Master Plan. 

        10.2 Regulatory Authority Inspections. 

        10.2.1 Interaction with Regulatory Authorities. All interaction with Regulatory Authorities (both written and oral) that
directly affects Product or the Production of Product shall be conducted in accordance with the provisions of this Article 10. At CLIENT's request, BAXTER will authorize Regulatory Authorities
to review on CLIENT's behalf applications related to the Production of Products. 

        10.2.2 Product Pre-Approval Inspection. In the case of the Product Pre-Approval Inspection by the FDA
related to the Products, the following shall apply: (a) BAXTER immediately shall inform CLIENT of the notice of such inspection; (b) BAXTER shall permit a representative of CLIENT (who
shall be selected by BAXTER from a list of senior representatives reasonably provided by CLIENT) to be present at such inspection (but not to participate, except as requested by BAXTER);
(c) BAXTER shall permit such representative of CLIENT to be present at, and participate in, each daily wrap up session for such inspection and the post-inspection wrap up session
for such inspection; (d) BAXTER promptly shall provide CLIENT with copies of all written materials, including without limitation copies of any Notice of Inspection (FDA Form 482), other
notice of inspection, notice of violation, other similar notice, or Inspectional Observations (FDA Form 483) received by BAXTER relating to such inspection, and (e) BAXTER shall provide
CLIENT with advance copies of all proposed responses to any such inspections, notices or actions, shall permit CLIENT reasonable opportunity to review and comment on each such response, shall
reasonably consider CLIENT's reasonable comments thereon, and shall provide CLIENT with copies of each such response as submitted. 

        10.2.3 Other Product Specific Inspections. In the case of an inspection (other than the Product Pre-Approval
Inspection) by a Regulatory Authority that directly affects the Production of Products, the following shall apply: (a) BAXTER immediately shall inform CLIENT of the notice of such inspection;
(b) BAXTER shall permit a representative of CLIENT (who shall be selected by BAXTER from a list of senior representatives reasonably provided by CLIENT) to be present at the BAXTER facility
that is the subject of such 

15

 

inspection
(but not to be present at the inspection or to participate, except as requested by BAXTER); (c) BAXTER shall permit such representative of CLIENT to be present at, and participate
in, each daily wrap up session for such inspection and the post-inspection wrap up session for such inspection; (d) BAXTER promptly shall provide CLIENT with copies of all written
materials, including without limitation copies of any Notice of Inspection (FDA Form 482), other notice of inspection, notice of violation, other similar notice, or Inspectional Observations
(FDA Form 483) received by BAXTER relating to such inspection, and (e) BAXTER shall provide CLIENT with advance copies of all proposed responses to any such inspections, notices or
actions, shall permit CLIENT reasonable opportunity to review and comment on each such response, shall reasonably consider CLIENT's reasonable comments thereon, and shall provide CLIENT with copies of
each such response as submitted. 

        10.2.4 Other Inspections. In the case of an inspection by a Regulatory Authority of a Baxter facility that does not directly
affect the Production of Products, the following shall apply: (a) BAXTER promptly
shall provide CLIENT with copies of all written materials (with confidential information that does not directly affect the Production of Products redacted therefrom), including without limitation
copies of any Notice of Inspection (FDA Form 482), other notice of inspection, notice of violation, other similar notice, or Inspectional Observations (FDA Form 483) received by BAXTER
relating to such inspection; and (b) BAXTER promptly shall provide CLIENT with copies of all responses to any such inspections, notices or actions (with confidential information that does not
directly affect the Production of Products redacted therefrom). 

        10.3 Accelerated Delivery of Kits. In the event of any adverse regulatory action, including without limitation receipt by
BAXTER from the FDA or other Regulatory Authorities of a warning letter, injunction, restraining order, notice of intent to do any of the foregoing, or notice of intent to revoke or suspend any of
BAXTER's licenses that directly affect Product or the Production of Product, BAXTER shall deliver to CLIENT, within forty eight (48) hours of a written request from CLIENT and after tender by
CLIENT of the applicable Purchase Price, all Kits and Kit Components requested by CLIENT in BAXTER's possession; provided that BAXTER is not prohibited from doing so per any applicable law,
regulation, court or agency order, notice, or ruling. 

Article 11, TRADEMARKS  

        11.1 CLIENT
grants to BAXTER a non-exclusive, royalty free license to use the CLIENT Trademarks for the sole purpose of allowing BAXTER to fulfill its
responsibilities under this Agreement. Such license shall not be transferable in whole or in part. 

        11.2 CLIENT
shall be solely responsible for selecting, registering and enforcing the CLIENT Trademarks used to identify a Product and except as set forth in
Section 11.1 and shall have sole and exclusive rights in such CLIENT Trademarks. 

Article 12, REPRESENTATIONS AND WARRANTIES  

        12.1 Mutual Representations. Each party hereby represents and warrants to the other party that (a) the person
executing this Agreement is authorized to execute this Agreement; (b) this Agreement is legal and valid and the obligations binding upon such party are enforceable by their terms; and
(c) the execution, delivery and performance of this Agreement does not violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over
it. 

        12.2 BAXTER Warranties. BAXTER represents and warrants that, as of the time of delivery to CLIENT in accordance with this
Agreement, all Product Produced under this Agreement 

16

 

(a) conforms
to the Kit Component Specifications and/or Kit Specifications (as applicable), (b) has been Produced in accordance with cGMP and all applicable laws and regulations set
forth in the Product Master Plan and in accordance with the applicable Certificates of Analysis (provided in accordance with the Quality Agreement) accompanying each Batch of Product, and
(c) is not adulterated or misbranded within the meaning of the FD&C Act. BAXTER represents and warrants that it has obtained (or will obtain prior to Producing Product), and will remain in
compliance with during the term of this Agreement, all permits, licenses and other authorizations (the "Permits") which are required under federal, state and local laws, rules and regulations
applicable to the Production only of Product as specified in the Product Master Plan; provided, however, BAXTER shall have no obligation to obtain Permits relating to the sale, marketing, distribution
or use of Products or with respect to the labeling of Products. BAXTER makes no representation or warranty with respect to the sale, marketing, distribution or use of Bulk Conjugated Antibody, other
CLIENT Supplied Components or Products or as to printed materials specified by CLIENT or its consignee. BAXTER represents and warrants that (i) no BAXTER employees performing services on
behalf of BAXTER under this Agreement have been debarred under Section 306 of the FD&C Act, and (ii) to its knowledge, no persons (other than BAXTER employees) performing services on
behalf of BAXTER under this Agreement have been debarred under Section 306 of the FD&C Act. 

        12.3 Disclaimer of Warranties. Except for those warranties set forth in Sections 12.1 and 12.2 of this Agreement, BAXTER
makes no warranties, written, oral, express or implied, with respect to Product or the Production of Product. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT HEREBY ARE DISCLAIMED BY BAXTER. NO WARRANTIES OF BAXTER MAY BE CHANGED BY ANY REPRESENTATIVES OF BAXTER. CLIENT
accepts Product subject to the terms hereof. 

        12.4 CLIENT Warranties. CLIENT warrants that it has the right to give BAXTER any information provided by CLIENT hereunder,
and that BAXTER has the right to use such information for the Production of Product. CLIENT further warrants that the Bulk Conjugated Antibody and other CLIENT Supplied Components provided to BAXTER
hereunder will (1) conform to the applicable Kit Component Specifications and/or Kit Specifications and (2) not be adulterated or misbranded within the meaning of the FD&C Act. 

        12.5 Disclaimer of Warranties. Except for those warranties set forth in Section 12.4 of this Agreement, CLIENT makes
no warranties, written, oral, express or implied, with respect to Bulk Conjugated Antibody, other CLIENT Supplied Components or Products. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT
LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT HEREBY ARE DISCLAIMED BY CLIENT. NO WARRANTIES OF
CLIENT MAY BE CHANGED BY ANY REPRESENTATIVES OF CLIENT. BAXTER accepts Bulk Conjugated Antibody and other CLIENT Supplied Components subject to the terms hereof. 

Article 13, LIMITATION OF LIABILITY, WAIVER OF SUBROGATION AND REPLACEMENT OF BULK CONJUGATED ANTIBODY AND OTHER CLIENT SUPPLIED COMPONENTS  

        13.1 Limitation of Liability. Under no circumstances shall either party be liable to the other for loss of use or profits or
other collateral, special, consequential, incidental or punitive damages, including but not limited to the cost of a recall, except as set forth in Sections 14 and 16, whether such claims are founded
in tort or contract. Without limiting the generality of the foregoing and notwithstanding anything to the contrary herein, the only liability of BAXTER for any

17

 

[CONFIDENTIAL TREATMENT REQUESTED] (i) shall exist in the event of a breach hereof by BAXTER  [CONFIDENTIAL TREATMENT REQUESTED] issued in accordance with
the terms of this Agreement; (ii) shall not include  [CONFIDENTIAL TREATMENT REQUESTED]; (iii) shall be limited to the [CONFIDENTIAL
TREATMENT REQUESTED] under this Agreement; and (iv) shall in no event [CONFIDENTIAL TREATMENT
REQUESTED]. 

        13.2 Waiver of Subrogation. All BAXTER Supplied Components and equipment used by BAXTER in the Production of Product, other
than those Components and equipment that are specifically stated in this Agreement to be owned by CLIENT (collectively, "BAXTER Property"), shall at all times remain the property of BAXTER and BAXTER
assumes risk of loss for the BAXTER Property until delivery of Product to a common carrier as specified under Section 6.1. BAXTER hereby waives any and all rights of recovery against CLIENT and
its Affiliates, and against any of their respective directors, officers, employees, agents or representatives, for any loss or damage to BAXTER Property to the extent the loss of damage is covered or
could be covered by insurance (whether or not such insurance is described in this Agreement). 

        13.3 Replacement of Bulk Conjugated Antibody. Risk of loss and responsibility for the cost of lost Bulk Conjugated Antibody
shall be as follows: 

        13.3.1 CLIENT
shall be solely responsible for the cost of lost Bulk Conjugated Antibody that results from the failure of such Bulk Conjugated Antibody to conform with the
applicable Kit Specifications
and/or Kit Component Specifications as of the time of the delivery of such Bulk Conjugated Antibody to BAXTER. 

        13.3.2 CLIENT
shall be solely responsible for the cost of lost Bulk Conjugated Antibody that results from the occurrence of a hazard beyond the control of BAXTER (excluding
any loss by reason of inefficiencies of Production, storage or handling by or on behalf of BAXTER). 

        13.3.3 CLIENT
shall be solely responsible for the cost of lost Bulk Conjugated Antibody arising in the course of the Production of the Stability/Validation Batches of such
Kit Component under this Agreement. 

        13.3.4 Except
as otherwise set forth in Sections 13.3.1, 13.3.2 and 13.3.3, with respect to Products determined to be non-conforming in any calendar year under
Section 7.2, (a) CLIENT shall be responsible for the cost of the Bulk Conjugated Antibody necessary to replace the quantity of non-conforming Products, up to the quantity
equal to [CONFIDENTIAL TREATMENT REQUESTED] of the aggregate conforming Products Produced and delivered to CLIENT in such
calendar year; (b) after CLIENT has satisfied its responsibility for the cost of the Bulk Conjugated Antibody under clause (a), BAXTER shall be responsible, and shall reimburse CLIENT,
for the replacement cost of the Bulk Conjugated Antibody necessary to replace the quantity of non-conforming Products, in excess of [CONFIDENTIAL
TREATMENT REQUESTED] and up to [CONFIDENTIAL TREATMENT REQUESTED] of the aggregate
conforming Products Produced and delivered to CLIENT in such calendar year; and (c) after CLIENT has satisfied its responsibility for the cost of the Bulk Conjugated Antibody under
clause (a) and BAXTER has satisfied its responsibility for the replacement cost of the Bulk Conjugated Antibody under clause (b), CLIENT shall be responsible for the cost of the Bulk
Conjugated Antibody necessary to replace the quantity of non-conforming Products, in excess of [CONFIDENTIAL TREATMENT
REQUESTED] of the aggregate conforming Products Produced and delivered to CLIENT in such calendar year. 

        13.3.5 Except
as otherwise set forth in Sections 13.3.1, 13.3.2 and 13.3.3, BAXTER shall be responsible, and shall reimburse CLIENT, for the replacement cost of Bulk
Conjugated Antibody lost in the course of Production, storage or handling in any calendar year by or on 

18

 

behalf
of BAXTER to the extent [CONFIDENTIAL TREATMENT REQUESTED] of Bulk Conjugated Antibody in such calendar year  [CONFIDENTIAL TREATMENT REQUESTED].

        13.3.6 For
purposes of this Section 13.3 the replacement cost for Bulk Conjugated Antibody shall be [CONFIDENTIAL TREATMENT
REQUESTED]; provided, however,
that upon the first anniversary of the date of this Agreement and on each anniversary thereafter, the replacement cost for Bulk Conjugated Antibody may be adjusted to  [CONFIDENTIAL TREATMENT REQUESTED],
not to exceed [CONFIDENTIAL TREATMENT
REQUESTED]. CLIENT shall provide BAXTER with written notice, which notice shall set forth the amount of such adjustment. CLIENT shall provide such notice not later
than thirty (30) calendar days following each such anniversary date to be effective, and any adjustment set forth in such notice shall be effective for Bulk Conjugated Antibody provided by
CLIENT for Batches which are the subject of Purchase Orders received by BAXTER after such anniversary date. 

        13.3.7 Notwithstanding
anything to the contrary herein, the [CONFIDENTIAL TREATMENT REQUESTED] under
this Section 13.3 in any [CONFIDENTIAL TREATMENT REQUESTED] shall not [CONFIDENTIAL
TREATMENT REQUESTED]. 

        13.3.8 BAXTER
shall reimburse CLIENT for all amounts owing under Sections 13.3.4 and 13.3.5 within thirty (30) calendar days after the receipt by BAXTER of an invoice
from CLIENT therefor. 

        13.4 Replacement of Other CLIENT Supplied Components. Risk of loss and responsibility for the cost of lost CLIENT Supplied
Components, other than Bulk Conjugated Antibody, shall be borne solely by CLIENT. 

        13.5 This
Article 13 sets for the entire liability of BAXTER with respect to any and all losses of Bulk Conjugated Antibody or other CLIENT Supplied Components. 

Article 14, INDEMNIFICATION  

        14.1 CLIENT Indemnification. CLIENT shall indemnify, defend and hold harmless BAXTER and its Affiliates and any of their
respective directors, managers, members, officers, employees, authorized subcontractors and agents (collectively the "Indemnified Parties") from and against any and all liabilities, obligations,
penalties, judgments, disbursements of any kind and nature, losses, damages, costs and expenses (including, without limitation, reasonable attorney's fees and costs) incurred as a result of any
claims, demands, actions or other proceedings by unaffiliated third parties against an Indemnified Party to the extent arising out of property damage or personal injury (including without limitation
death) of third parties (collectively "Claims"), resulting from (a) CLIENT's storage, promotion, labeling, marketing, distribution, use or sale of Bulk Conjugated Antibody, other CLIENT
Supplied Components or Products, (b) CLIENT's negligence, omission or willful misconduct, (c) CLIENT's breach of its representations or obligations under this Agreement, (d) the
execution, delivery and performance of this Agreement by CLIENT conflicting with any other agreement of CLIENT relating to the production and supply of Product, or (e) any claim that the use,
sale, Production, marketing or distribution of Bulk Conjugated Antibody, other CLIENT Supplied Components or Products by BAXTER in accordance with this Agreement, or by CLIENT, violates the patent,
trademark, copyright or other proprietary rights of any third party, except to the extent any of the foregoing (a) or (e) is caused [CONFIDENTIAL
TREATMENT REQUESTED] by the negligence, omission or willful misconduct of the Indemnified Parties or [CONFIDENTIAL TREATMENT
REQUESTED] by the breach by BAXTER of its representations or obligations under this Agreement. 

19

 

        14.2 BAXTER Indemnification. BAXTER shall indemnify, defend and hold harmless CLIENT and its Affiliates and any of their
respective directors, officers, employees, and agents from and against any and all Claims resulting [CONFIDENTIAL TREATMENT
REQUESTED] from the Indemnified Parties' negligence, omission or willful misconduct, or [CONFIDENTIAL TREATMENT
REQUESTED] from BAXTER's breach of its representations or obligations under this Agreement. 

        14.3 Indemnitee Obligations. A party (the "Indemnitee") which intends to claim indemnification under this Section 14
shall promptly notify the other party (the "Indemnitor") in writing of any claim, demand, action, or other proceeding in respect of which the Indemnitee intends to claim such indemnification;
provided, however, that failure to provide such notice within a reasonable period of time shall not relieve the Indemnitor of any of its obligations hereunder except to the extent the Indemnitor is
prejudiced by such failure. The Indemnitee shall permit, and shall cause its Affiliates, and their respective directors, officers, employees, subcontractors and agents to permit, the Indemnitor, at
its discretion, to settle any such action, claim or other matter, and the Indemnitee agrees to the complete control of such defense or settlement by the Indemnitor. Notwithstanding the foregoing, the
Indemnitor shall not enter into any settlement that would adversely affect the Indemnitee's rights hereunder, or impose any obligations on the Indemnitee in addition to those set forth herein, in
order for it to exercise such rights, without Indemnitee's prior written consent, which shall not be unreasonably withheld or delayed. No such action, claim or other matter shall be settled without
the prior written consent of the Indemnitor, which shall not be unreasonably withheld or delayed. The Indemnitee, its Affiliates, and their respective directors, officers, employees, subcontractors
and agents shall reasonably cooperate with the Indemnitor and its legal representatives in the investigation and defense of any claim, demand, action, or other proceeding covered by the
indemnification obligations of this Section 14.
The Indemnitee shall have the right, but not the obligation, to be represented in such defense by counsel of its own selection and at its own expense. 

Article 15, INSURANCE  

        15.1 CLIENT Insurance. CLIENT shall procure and maintain, during the Term of this Agreement and for a period one
(1) year beyond the expiration date of the last Product Produced under this Agreement, Commercial General Liability Insurance, including without limitation, Product Liability and Contractual
Liability coverage (the "CLIENT Insurance"). The CLIENT Insurance shall cover amounts not less than twenty million dollars ($20,000,000) combined single limit and shall be with an insurance carrier
reasonably acceptable to BAXTER. BAXTER shall be named as an additional insured on the CLIENT Insurance and CLIENT promptly shall deliver a certificate of CLIENT Insurance and endorsement of
additional insured to BAXTER evidencing such coverage. If CLIENT fails to furnish such certificates or endorsements, or if at any time during the Term of this Agreement BAXTER is notified of the
cancellation or lapse of the CLIENT Insurance, and CLIENT fails to rectify the same within ten (10) calendar days after notice from BAXTER, in addition to all other remedies available to BAXTER
hereunder, BAXTER, at its option, may obtain the CLIENT Insurance and CLIENT promptly shall reimburse BAXTER for the cost of the same. Any deductible and/or self insurance retention shall be the sole
responsibility of CLIENT. 

        15.2 BAXTER Insurance. BAXTER is, and shall during the Term of this Agreement remain, self-insured for the type
of liability that could arise under this Agreement, to the same extent and in the same manner as BAXTER maintains self-insurance for similar activities. Notwithstanding the foregoing,
except in the case of an assignment of this Agreement by BAXTER to an Affiliate of Baxter Healthcare Corporation, unless CLIENT otherwise reasonably agrees, any permitted assignee or successor in
interest to BAXTER under this Agreement (the "Successor") shall 

20

 

procure
and maintain, during the Term of this Agreement and for a period one (1) year beyond the expiration date of the last Product Produced under this Agreement, Commercial General Liability
Insurance, including without limitation, Product Liability and Contractual Liability coverage (the "Successor Insurance"). The Successor Insurance shall cover amounts not less than twenty million
dollars ($20,000,000) combined single limit and shall be with an insurance carrier reasonably acceptable to CLIENT. CLIENT shall be named as an additional insured on the Successor Insurance and
Successor promptly shall deliver a certificate of Successor Insurance and endorsement of additional insured to CLIENT evidencing such coverage. If Successor fails to furnish such certificates or
endorsements, or if at any time during the Term of this Agreement CLIENT is notified of the cancellation or lapse of the Successor Insurance, and Successor fails to rectify the same within ten
(10) calendar days after notice from CLIENT, in addition to all other remedies available to CLIENT hereunder, CLIENT, at its option, may obtain the Successor Insurance and Successor promptly
shall reimburse CLIENT for the cost of the same. Any deductible and/or self insurance retention shall be the sole responsibility of Successor. 

Article 16, RECALL OF PRODUCT  

        16.1 Each
party promptly shall notify the other if any Batch of Product is alleged or proven to be the subject of a recall, market withdrawal or correction. CLIENT shall be
responsible for coordinating any recall, market withdrawal or field correction of Product, and recall, market withdrawal or correction shall be conducted in accordance with the provisions of the
Quality Agreement. CLIENT shall provide BAXTER with a copy of all documents relating to such recall, market withdrawal or field correction. BAXTER shall cooperate with CLIENT (including providing
CLIENT with all data, information and documents requested by CLIENT) in connection with such recall, market withdrawal or field correction, at CLIENT's expense. Unless such recall is  [CONFIDENTIAL TREATMENT REQUESTED]
, CLIENT shall be responsible for all of the costs and expenses of such recall, market
withdrawal or field correction. In the event a recall, market withdrawal or field correction is necessary because both (i) BAXTER has delivered a non-conforming Product to CLIENT,
and (ii) such non-conformity is [CONFIDENTIAL TREATMENT REQUESTED], BAXTER will bear all reasonable costs
associated with such recall, market withdrawal or field correction (including but not limited to costs associated with receiving and administering the recalled Product and notification of the recall
to those persons whom 

21

 

CLIENT
deems appropriate) in accordance with and up to a cumulative total maximum amount set forth in the chart below:   

	 
	 	Recall Class

	Number of Consignees
 

	 	I
	 	II
	 	III

	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]
	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]
	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]
	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]
	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]

        In
the event a recall, market withdrawal or field correction is necessary because both (i) BAXTER has delivered a non-conforming Product to CLIENT, and
(ii) such non-conformity is due [CONFIDENTIAL TREATMENT REQUESTED], or  [CONFIDENTIAL TREATMENT REQUESTED] BAXTER's breach of its warranties or
obligations under this Agreement, BAXTER additionally
will be responsible for the replacement cost of all returned Kits which are the subject of such recall, market withdrawal or field correction [CONFIDENTIAL
TREATMENT REQUESTED]. 

        16.2 This
Article 16 sets forth the entire liability of BAXTER in the event of a recall, market withdrawal, or field correction. 

Article 17, INTELLECTUAL PROPERTY  

        17.1 Existing Intellectual Property. Except as the parties may otherwise expressly agree in writing, each party shall
continue to own its existing patents, trademarks, copyrights, trade secrets and other intellectual property, without conferring any interests therein on the other party. Without limiting the
generality of the preceding sentence, CLIENT shall retain all right, title and interest arising under the United States Patent Act, the United States Trademark Act, the United States Copyright Act and
all other applicable United States and foreign laws, rules and regulations relating to Product, Bulk Conjugated Antibody, CLIENT Supplied Components, labeling and trademarks associated therewith
(collectively, "CLIENT's Intellectual Property"). Neither BAXTER nor any third party shall acquire any right, title or interest in CLIENT's Intellectual Property by virtue of this Agreement or
otherwise, except to the extent expressly provided herein. 

        17.2 Individually Owned Inventions. Except as the parties may otherwise agree in writing, all Inventions (as defined herein)
which are conceived, reduced to practice, or created by a party in the course of performing its obligations under this Agreement shall be solely owned and subject to use and exploitation by the
inventing party without a duty to account to the other party. For purposes of this Agreement, "Invention" shall mean any invention, innovation, improvement, development, discovery, computer program,
device, trade secret, method, know-how, process, technique or the like, whether or not written or otherwise fixed in any form or medium, regardless of the media on which contained and
whether or not patentable or copyrightable. BAXTER 

22

 

hereby
grants to CLIENT a royalty-free, non-exclusive, worldwide license (with the right to grant sublicenses) under all patent rights and other intellectual property rights
covering Inventions which are conceived, reduced to practice, or created by BAXTER in the course of performing its obligations under this Agreement and which relate directly to the Bulk Conjugated
Antibody or other CLIENT Supplied Components. 

        17.3 Jointly Owned Inventions. All Inventions which are conceived, reduced to practice, or created jointly by the parties
and/or their respective agents (i.e., employees or agents who would be or are properly named as co-inventors under the laws of the United States on any patent application claiming any such
Invention) in the course of the performance of this Agreement shall be owned jointly by the parties. Each party shall have full rights, subject to the provisions of this Agreement, to freely exploit,
transfer, license or encumber its rights in any such jointly-owned Inventions and the patent rights and other intellectual property rights therein without the consent of, or payment or accounting to,
the other party. The parties shall share equally in the cost of mutually agreed patent filings with respect to all such jointly owned Inventions. The decision to file for patent coverage on jointly
owned Inventions shall be mutually agreed upon, and the Parties shall select a mutually acceptable patent counsel to file and prosecute patent applications based on such joint Inventions. 

        17.4 Disclaimer. Except as otherwise expressly provided herein, nothing contained in this Agreement shall be construed or
interpreted, either expressly or by implication, estoppel or otherwise, as: (i) a grant, transfer or other conveyance by either party to the other of any right, title, license or other interest
of any kind in any of its Inventions or intellectual property, (ii) creating an obligation on the part of either party to make any such grant, transfer or other conveyance or
(iii) requiring either party to participate with the other party in any cooperative development program or project of any kind or to continue with any such program or project. 

        17.5 Rights in IP. The party owning any solely-owned Invention shall have the world wide right to control the drafting,
filing, prosecution and maintenance of patents covering such solely-owned Invention, including decisions about the countries in which to file patent applications. Patent costs associated with the
patent activities described in this Section shall be borne by the sole owner. Each party will cooperate with the other party, at the sole cost of the other party, in the filing and prosecution of
patent applications covering Inventions solely owned by the other party. Such cooperation will include, but not be limited to, furnishing supporting data and affidavits for the
prosecution of patent applications and completing and signing forms needed for the prosecution, assignment and maintenance of patent applications. 

        17.6 Confidentiality of IP. The protection of each party's Confidential Information is described in Section 18. Any
disclosure of information by one party to the other under the provisions of this Section 17 shall be treated as the disclosing party's Confidential Information under this Agreement (subject to
the exceptions set forth in Section 1 of the Confidentiality Agreement). It shall be the responsibility of the party preparing a patent application to obtain the written permission of the other
party to use or disclose the other party's Confidential Information in the patent application before the application is filed and for other disclosures made during the prosecution of the patent
application. 

Article 18, CONFIDENTIAL INFORMATION, NONDISCLOSURE AND PUBLICITY  

        18.1 Confidentiality. It is contemplated that in the course of the performance of this Agreement each party may, from time to
time, disclose Confidential Information to the other. In accordance with the terms and conditions of the Confidentiality Agreement, each party shall maintain in confidence the Confidential Information
of the other party, shall not use or grant the use of the Confidential Information of the other party except as expressly permitted hereby, and 

23

  

shall
not disclose the Confidential Information of the other party except on a need-to-know basis to such party's directors, officers and employees to the extent such
disclosure is reasonably necessary in connection with such party's activities as expressly authorized by this Agreement. 

        18.2 Prior Confidentiality Agreement. The Confidentiality Agreement, by reference, is made a part hereof as though fully set
forth herein. The Parties acknowledge that BAXTER is the successor by assignment to Baxter Healthcare Corporation under the Confidentiality Agreement, and BAXTER shall be bound by the terms of the
Confidentiality Agreement to the same extent as if BAXTER were an original signatory thereto. The Confidentiality Agreement is amended (a) to govern all disclosures by the parties hereunder,
and (b) to extend the term thereof (and the term of the obligations of the parties thereunder) until the later of (i) five years after the date of this Agreement, and (ii) seven
(7) years after the effective date of the Confidentiality Agreement; provided, however, that Confidential Information which constitutes a trade secret of a party shall be kept confidential
indefinitely, subject to the limitations set forth in Sections 18.4 through 18.6. 

        18.3 Third Party Disclosure. Either party may disclose Confidential Information of the disclosing party to those Affiliates,
agents and consultants who need to know such information to accomplish the purposes of this Agreement (collectively, "Permitted Recipients"); provided that such Permitted Recipients are bound to
maintain such Confidential Information in confidence to the same extent as set forth in Section 18.1. 

        18.4 Litigation and Governmental Disclosure. Each party may disclose Confidential Information hereunder to the extent such
disclosure is reasonably necessary for prosecuting or defending litigation, complying with applicable laws, governmental regulations or court orders, or conducting pre-clinical or clinical
trials, provided that if a party is required by law or regulation to make any such disclosure of the other party's Confidential Information it will, except where impractical for necessary disclosures,
for example in the event of a medical emergency, give reasonable advance notice to the other party of such disclosure requirement and will use good faith efforts to assist such other party to secure a
protective order or confidential treatment of such Confidential Information required to be disclosed. 

        18.5 Limitation of Disclosure. The parties agree that, except as otherwise may be required by applicable laws, regulations,
rules or orders, including without limitation the rules and regulations promulgated by the United States Securities and Exchange Commission, and except as may be authorized in Section 18.4, no
information concerning this Agreement and the transactions contemplated herein shall be made public by either party without the prior written consent of the other. 

        18.6 Publicity and SEC Filings. The parties agree that the public announcement of the execution of this Agreement shall only
be by one or more press releases mutually agreed to by the parties. The failure of a party to return a draft of a press release with its proposed amendments or modifications to such press release to
the other party within five (5) calendar days of such party's receipt of such press release shall be deemed as such party's approval of such press release as received by such party. Each party
agrees that it shall cooperate fully and in a timely manner with the other with respect to all disclosures to the Securities and Exchange Commission and any other governmental or regulatory agencies,
including requests for confidential treatment of Confidential Information of either party included in any such disclosure. 

Article 19, FORCE MAJEURE  

        19.1 Any
delay in the performance of any of the duties or obligations of either party hereto (except the payment of money), to the extent caused by an event outside the
affected party's reasonable control, shall not be considered a breach of this Agreement, and unless provided to the contrary herein, the time required for performance shall be extended for a period
equal to the 

24

 

period
of such delay. Such events shall include without limitation, acts of God; acts of public enemies; insurrections; riots; injunctions; embargoes; labor disputes, including strikes, lockouts, job
actions, or boycotts; fires; explosions; floods; shortages of material or energy; delays in the delivery of raw materials; acts or orders of any government or agency thereof or other unforeseeable
causes beyond the reasonable control and without the fault or negligence of the party so affected. The party so affected shall give prompt written notice to the other party of such cause and a good
faith estimate of the continuing effect of the force majeure condition and duration of the affected party's nonperformance, and shall take whatever reasonable steps are appropriate to relieve the
effect of such causes as rapidly as possible. If the period of nonperformance by BAXTER because of force majeure conditions exceeds ninety (90) calendar days, CLIENT may terminate this
Agreement by written notice to BAXTER. If the period of nonperformance by CLIENT because of force majeure conditions exceeds ninety (90) calendar days, BAXTER may terminate this Agreement by
written notice to CLIENT. 

Article 20, NOTICES  

        20.1 All
notices hereunder shall be delivered by facsimile (confirmed by overnight delivery), or by overnight delivery with a reputable overnight delivery service, to the
following address of the respective parties: 

	If to BAXTER:	 	Baxter Pharmaceutical Solutions LLC

927 South Curry Pike

Bloomington, Indiana 47403
	 	 	Attn:	Alisa K. Wright, Vice President of Business Affairs
	

 	
 	

Telefax No.	
 	

812-332-3079
	 	 	Telephone No.	 	812-333-0887
	

With a copy to:	
 	

Baxter Healthcare Corporation

One Baxter Parkway

Deerfield, Illinois 60015-4633
	 	 	Attn:	General Counsel
	

 	
 	

Telefax No.	
 	

(847) 948-2450
	 	 	Telephone No.	 	(847) 948-2600
	

If to CLIENT:	
 	

IDEC Pharmaceuticals Corporation

3030 Callan Road

San Diego, California 92121
	 	 	Attn:	President
	

 	
 	

Telefax No.	
 	

(858) 431-8755
	 	 	Telephone No.	 	(858) 431-8500
	

With a copy to:	
 	

IDEC Pharmaceuticals Corporation

3030 Callan Road

San Diego, California 92121
	 	 	Attn:	Company Secretary
	

 	
 	

Telefax No.	
 	

(858) 431-8755
	 	 	Telephone No.	 	(858) 431-8500

        Notices
shall be effective on the day of receipt. A party may change its address listed above by notice to the other party given in accordance with this section. 

25

 

Article 21, APPLICABLE LAW  

        21.1 This
Agreement is being delivered and executed in the State of Indiana. In any action brought regarding the validity, construction and enforcement of this Agreement, it
shall be governed in all respects by the laws of the State of Indiana, without regard to the principals of conflicts of laws. 

Article 22, ASSIGNMENT  

        22.1 Neither
party shall assign this Agreement or any part hereof or any interest herein to any third party (or use any subcontractor) without the written approval of the
other party. In addition, no consent shall be required (a) in the case of an assignment by BAXTER to an Affiliate of Baxter Healthcare Corporation, or (b) in the case of a transaction
involving the merger, consolidation, change in control or sale of all or substantially all of the assets of the party seeking such assignment or transfer and such transaction relates to the business
covered by this Agreement and the resulting entity assumes all of the obligations under this Agreement. No assignment shall be valid unless the permitted assignee(s) assumes all obligations of its
assignor under this Agreement. No assignment shall relieve any party of responsibility for the performance of its obligations hereunder. Any purported assignment in violation of this section shall be
void. 

Article 23, ALLIANCES  

        23.1 Notwithstanding
anything to the contrary herein, BAXTER agrees that CLIENT shall have the right to enter into alliances with third parties who may engage in joint (with
CLIENT) or unilateral marketing and promoting of Product or any combination of products that includes Product. 

Article 24, TAXES  

        24.1 CLIENT
shall pay all national, state, municipal or other sales, use, excise, import, property, value added, or other similar taxes, assessments or tariffs assessed upon
or levied against the sale of Product to CLIENT pursuant to this Agreement or the sale or distribution of Product by CLIENT (or at CLIENT's sole expense, defend against the imposition of such taxes
and expenses). BAXTER shall notify CLIENT of any such taxes that any governmental authority is seeking to collect from BAXTER, and CLIENT may assume the defense thereof in BAXTER's name, if necessary,
and BAXTER agrees to fully cooperate in such defense to the extent of the capacity of BAXTER, at CLIENT's expense. BAXTER shall pay all national, state, municipal or other taxes on the income
resulting from the sale by BAXTER of Product to CLIENT under this Agreement, including but not limited to, gross income, adjusted gross income, supplemental net income, gross receipts, excess profit
taxes, or other similar taxes. 

Article 25, SUCCESSORS AND ASSIGNS  

        25.1 This
Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their successors and permitted assigns. 

Article 26, ENTIRE AGREEMENT  

        26.1 This
Agreement, together with the Product Master Plan and the Confidentiality Agreement, constitutes the entire agreement between the parties concerning the subject
matter hereof and supersedes all written or oral prior agreements, understandings and representations with respect thereto. 

26

 

Article 27, SEVERABILITY  

        27.1 If
any term or provision of this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other term or provision hereof, and this Agreement shall be interpreted and construed as if such term or provision, to the extent the same shall have been held to
be invalid, illegal or unenforceable, had never been contained herein. 

Article 28, WAIVER AND MODIFICATION OF AGREEMENT  

        28.1 No
waiver or modification of any of the terms of this Agreement (including the Exhibits hereto), the Product Master Plan or the Confidentiality Agreement, shall be
valid unless in writing and signed by an authorized representative of each party. Failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of such rights
nor shall a waiver by either party in one or more instances be construed as constituting a continuing waiver or as a waiver in other instances. 

Article 29, INDEPENDENT CONTRACTORS  

        29.1 BAXTER
and CLIENT are acting under this Agreement as independent contractors and neither shall be considered an agent of, or joint venturer with, the other. 

        IN WITNESS WHEREOF, the parties have caused this Commercial Supply Agreement to be signed by their duly authorized representatives as of
the Effective Date written above. 

	 	 	"BAXTER"	 	 	 	"CLIENT"
	
BAXTER PHARMACEUTICAL SOLUTIONS LLC	
 	
IDEC PHARMACEUTICALS CORPORATION
	

By:	
 	

/s/  ALISA K. WRIGHT      
	
 	

By:	
 	

/s/  WILLIAM ROHN      

	

Name: Alisa Wright	
 	

Name: William Rohn
	

Title: Vice President, Business Affairs	
 	

Title: President and COO

27

 
 

Exhibit 1    
    
    Cancellation Fees    
    

	Timing
 
	 	Cancellation Fee

	Cancellation of any batch within [CONFIDENTIAL TREATMENT REQUESTED] of the scheduled fill date	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Cancellation of any batch within [CONFIDENTIAL TREATMENT REQUESTED] of the scheduled fill date	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Cancellation of any batch within [CONFIDENTIAL TREATMENT REQUESTED] of the scheduled fill date	 	[CONFIDENTIAL TREATMENT REQUESTED]

 
 

Exhibit 2    
    
    Product Specifications for Release Testing of Product Kits    
    

        Labeled and released components will be assembled into the Zevalin radiolabeling kit (111-Indium or 90-Yttrium). 

        Each
kit component (2B8-MX-DTPA Conjugated Antibody, 50 mM Sodium Acetate, Formulation Buffer and Reaction vial) is individually tested and released based upon
pre-determined release specifications. 

        Kits
are tested for adequacy of the packaging materials (labels, tray, package insert, overlabels and carton), printing of lot number and expiration date, and identity of the kit
components is verified using the following methods: 

	[CONFIDENTIAL

TREATMENT

REQUESTED]	 	[CONFIDENTIAL

TREATMENT

REQUESTED]	 	[CONFIDENTIAL

TREATMENT

REQUESTED]
	

[CONFIDENTIAL

TREATMENT

REQUESTED]	
 	

[CONFIDENTIAL

TREATMENT

REQUESTED]	
 	

[CONFIDENTIAL

TREATMENT

REQUESTED]
	

[CONFIDENTIAL

TREATMENT

REQUESTED]	
 	

[CONFIDENTIAL

TREATMENT

REQUESTED]	
 	

[CONFIDENTIAL

TREATMENT

REQUESTED]
	

[CONFIDENTIAL

TREATMENT

REQUESTED]	
 	

[CONFIDENTIAL

TREATMENT

REQUESTED]	
 	

[CONFIDENTIAL

TREATMENT

REQUESTED]

[CONFIDENTIAL TREATMENT REQUESTED]

 
 

Exhibit 3    
    
    Kit Component Specifications
  for Release Testing of 2B8-MX-DTPA Conjugated Antibody    
    

	 
	 	Test Name
	 	Specification

	Safety Tests/

Process Related Impurities	 	Pre-filtration Bioburden	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Particulate Matter	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Bacterial Endotoxins	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Sterility (Bulk)	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Sterility (Finished Product)	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Identity	 	Potency Tests	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Strength	 	Protein Concentration	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Quality	 	Appearance, Color, Clarity	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Potency	 	CD20 Binding Activity	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Radiochemical Purity	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Purity/

Product Related Impurities	 	Percent Monomer by SEC-HPLC	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Chelates per Antibody	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	SDS-PAGE, Silver Stain	 	[CONFIDENTIAL TREATMENT REQUESTED]
	General Tests	 	Fill Volume	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	pH Determination	 	[CONFIDENTIAL TREATMENT REQUESTED]

[CONFIDENTIAL TREATMENT REQUESTED]

 
 

Kit Component Specifications
  for Release Testing of 50 mM Sodium Acetate    
    

	 
	 	Test Name
	 	Specification

	Safety Tests/

Process Related Impurities	 	Pre-filtration Bioburden	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Particulate Matter	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Bacterial Endotoxins	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Sterility (Bulk)	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Sterility (Finished Product)	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Identity	 	Sodium Identification	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Acetate Identification	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Strength	 	Sodium Acetate Concentration	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Quality	 	Appearance, Color, Clarity	 	[CONFIDENTIAL TREATMENT REQUESTED]
	General Tests	 	Fill Volume	 	[CONFIDENTIAL TREATMENT REQUESTED]

 
 

Kit Component Specifications
  for Release Testing of Formulation Buffer    
    

	 
	 	Test Name
	 	Specification

	Safety Tests/

Process Related Impurities	 	Pre-filtration Bioburden	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Particulate Matter	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Bacterial Endotoxins	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Sterility (Bulk)	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Sterility (Finished Product)	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Identity	 	HSA Identification	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Strength	 	HSA Concentration	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	DTPA Concentration	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Quality	 	Appearance, Color, Clarity	 	[CONFIDENTIAL TREATMENT REQUESTED]
	General Tests	 	Fill Volume	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	pH Determination	 	[CONFIDENTIAL TREATMENT REQUESTED]

[CONFIDENTIAL TREATMENT REQUESTED]

 
 

Kit Component Specifications
  for Release Testing of Reaction Vial    
    

	 
	 	Test Name
	 	Specification

	Safety Tests/

Process Related Impurities	 	Particulate Matter	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Bacterial Endotoxins	 	[CONFIDENTIAL TREATMENT REQUESTED]
	 	 	Sterility (Finished Product)	 	[CONFIDENTIAL TREATMENT REQUESTED]
	Quality	 	Appearance, Color, Clarity	 	[CONFIDENTIAL TREATMENT REQUESTED]

[CONFIDENTIAL TREATMENT REQUESTED]

 
 

Exhibit 4    
    

[Reserved] 

 
 

Exhibit 5    
    
    Regulatory Authorities and Countries    
    

	Regulatory Authority
	 	Country of Distribution

	FDA	 	United States
	EMEA	 	European Union
	HPB	 	Canada

 
 

Exhibit 6    
    

[CONFIDENTIAL
TREATMENT REQUESTED] 

 
 

Exhibit 7    
    
    Pricing    
    

A. Production  

	Filling
 
	 	Batch Size
	 	Theoretical Yield*
	 	Price/Batch**

	Conjugated Antibody	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]
	

Sodium Acetate	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	
[CONFIDENTIAL TREATMENT REQUESTED]
	

Formulation Buffer	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	
[CONFIDENTIAL TREATMENT REQUESTED]
	

Reaction Vial	
 	

N/A	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	
[CONFIDENTIAL TREATMENT REQUESTED]

	*
	[CONFIDENTIAL TREATMENT REQUESTED].

	**
	For
Batches manufactured post Stability/Validation Batches 

	Kitting
	 	Price/Kit***

	500—1,000 kits	 	[CONFIDENTIAL TREATMENT REQUESTED]
	

1,001—2,500 kits	
 	
[CONFIDENTIAL TREATMENT REQUESTED]
	

2,501—5,000 kits	
 	
[CONFIDENTIAL TREATMENT REQUESTED]

	***
	[CONFIDENTIAL TREATMENT REQUESTED].

B. Services  

	Storage of Bulk Conjugated Antibody and Other Client Supplied Components in excess of a [CONFIDENTIAL TREATMENT REQUESTED]	 	[CONFIDENTIAL TREATMENT REQUESTED]
	

Storage of Kit Component or Kit in [CONFIDENTIAL TREATMENT REQUESTED]	
 	

[CONFIDENTIAL TREATMENT REQUESTED]

 
 

Exhibit 8    
    
    INTERCOMPANY QUALITY AGREEMENT    
    

	IDEC Pharmaceuticals Corporation

San Diego, California 92121

(hereafter called "IDEC")
	

Approved by: /s/  MICHAEL E. WIEKE      	
 	

Date: 6/14/02
	
Vice President, Quality, IDEC	
 	

 
	

AND
	

Baxter Pharmaceutical Solutions LLC

Bloomington, Indiana 47402

(hereafter called "BAXTER")
	

Approved by: /s/ [ILLEGIBLE]	
 	

Date: 6/14/02
	
Director, Quality, BAXTER	
 	

 

The
PRODUCT Listed in the Supply Agreement

(hereafter called "the PRODUCT")

are subject to the following conditions: 

 
History
of Revisions 

	Revision

Version
	 	Revision

Date
	 	Revised By
	 	Description

	0.0	 	041902	 	T. Ryskamp	 	Initial
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    
	    	 	    	 	    	 	    

2

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	1.	 	QUALITY AGREEMENT	 	4
	

2.	
 	

PRODUCT	
 	

4
	

3.	
 	

ADMINISTRATIVE INFORMATION	
 	

4
	

4.	
 	

DURATION OF AGREEMENT	
 	

4
	

5.	
 	

MANUFACTURING cGMP COMPLIANCE	
 	

4
	

6.	
 	

QUALITY CONTROL	
 	

7
	

7.	
 	

QUALITY ASSURANCE	
 	

8
	

8.	
 	

REGULATORY COMPLIANCE	
 	

10
	

9.	
 	

DISPUTE RESOLUTION	
 	

12
	

10.	
 	

CHANGE MANAGEMENT	
 	

12
	

11.	
 	

PRODUCT AND PROCESS VALIDATION	
 	

12
	

12.	
 	

NOTIFICATION OF NEW PRODUCT CLASSIFICATION	
 	

13
	

13.	
 	

ANNUAL PRODUCT REVIEW, ANNUAL REPORT AND DRUG LISTING	
 	

13
	

APPENDIX I—List of Quality Contacts	
 	

14
	

APPENDIX II—Release Documentation	
 	

15
	

APPENDIX III—Certificate of Analysis for Filling: Conjugated Antibody Component	
 	

16
	

APPENDIX IV—Certificate of Analysis for Filling: Formulation Buffer Component	
 	

17
	

APPENDIX V—Certificate of Analysis for Filling: Sodium Acetate Component	
 	

18
	

APPENDIX VI—List of Applicable Standard Operating Procedures	
 	

19

3

   
        1.    QUALITY AGREEMENT    

        1.1   Purpose

        1.1.1. This
agreement defines the roles and responsibilities for BAXTER Quality Operations when providing services for IDEC. 

        1.1.2. This
agreement also defines how BAXTER Quality Operations and IDEC Quality Department will interact with each other. 

        1.1.3. For
purposes of the BLA filing for the PRODUCT described in the Supply Agreement, IDEC is identified as the "manufacturer," the legal entity in the license
application assuming responsibility for compliance at BAXTER per 21 CFR 600.3 (t). 

        1.2   Relationship
to Supply Agreement 

        1.2.1. This
agreement shall be incorporated within and constitute a part of the Supply Agreement between the two companies. 

        1.2.2. In
the event of a conflict between any of the provisions of the Quality Agreement and the Supply Agreement, the provisions of the Supply Agreement shall govern. 

        1.2.3. The
definitions set forth in the Supply Agreement are applicable to this Quality Agreement unless otherwise specified. 

        2.    PRODUCT    

        2.1   The
PRODUCT prepared for IDEC by BAXTER are described in the Supply Agreement. 

        3.    ADMINISTRATIVE INFORMATION    

        3.1   IDEC
contact names: See Appendix I 

        3.2   BAXTER
contact names: See Appendix I 

        3.3   Emergency
contact names and numbers, during and outside working hours: 

Michael
Wiebe, Ph.D.

Vice President, Quality, IDEC

Work: 858-431-8765 

Connie
Degen

Director, Quality, BAXTER

Work: 812-333-0887 

        4.    DURATION OF AGREEMENT    

        The
agreement will expire with termination of the Supply Agreement. The agreement can be modified as needed with the written approval of both parties. 

        5.    MANUFACTURING cGMP COMPLIANCE    

        5.1   General

        5.1.1. The
manufacturing operations for the PRODUCT to be performed by BAXTER are defined in the Supply Agreement. 

        5.1.2. The
manufacturing schemes for PRODUCT are generally described in the Product Master Plan. IDEC shall advise BAXTER as soon as commercially reasonable of any proposed
material change to the manufacturing schemes that are made and filed on the BLA or license for the PRODUCT. Implementation of these changes will be handled as outlined by 

4

 

Change
Management (see section 10). BAXTER shall advise IDEC of any proposed material change to the manufacturing schemes that are made and filed on the BLA or license for the PRODUCT. Any
proposed changes shall be approved by IDEC prior to their implementation 

        5.2   Premises

        5.2.1. BAXTER
will manufacture the PRODUCT at the Bloomington, Indiana site. The floor plan of the manufacturing area and corresponding room classifications is available for
review during annual audits of the facility. 

        5.2.2. The
premises and equipment used to manufacture the PRODUCT will be maintained according to current domestic and EU regulatory requirements and in accordance with the
batch records used to manufacture the PRODUCT, which are approved by IDEC. The production of the PRODUCT will be conducted in a suitably controlled environment and such facilities will be regularly
monitored for parameters critical to the process to demonstrate compliance with cGMP guidelines and the Product Master Plan, including the Master Batch Records and Project Plans. 

        A
list of the standard operating procedures that are used to manufacture PRODUCT are shown in Appendix VI. 

        5.2.3. BAXTER
will not sub-contract any portion of the manufacturing operations without prior written approval of IDEC 

        5.2.4. BAXTER
will maintain controlled access to the premises. Baxter will maintain all IDEC confidential information as defined in the Confidentiality Agreement and the
Supply Agreement. 

        5.3   cGMP

        5.3.1. The
principles detailed in the US Current Good Manufacturing Practices (21 CFR 200, 211, and 600), the "Rules Governing Medicinal Product in The European
Community—Volume IV Good Manufacturing Practice for Medicinal Products," and/or "Cooperative Manufacturing Arrangements for Licensed Biologics" FDA-CBER will cover the
standards of manufacture of the PRODUCT. cGMP guidelines will cover the standards of quality assurance for the PRODUCT, including any product license requirements as communicated to BAXTER by IDEC. 

        5.4   Materials

        5.4.1. BAXTER
will use only chemical materials, packaging, and labeling components approved by IDEC and sampled, tested and stored in accordance with the documentation
reviewed by IDEC. 

        5.4.2. Materials
procured by BAXTER 

        5.4.2.1. BAXTER
is responsible for ensuring that all materials and components procured by BAXTER for use in the PRODUCT are in full compliance with the specifications
approved by IDEC. Raw materials are given an expiration date upon the satisfactory completion of all initial testing. Testing will be performed at defined time intervals to ensure the chemical and
physical stability of the raw materials for the duration of their useful shelf life. BAXTER is responsible for ensuring that all materials are used correctly and, are appropriately tested upon receipt
as well as for holding the relevant Certificate of Analysis for the materials. 

        5.4.3. Materials
Provided by IDEC for BAXTER 

5

 

        5.4.3.1. IDEC
is responsible for ensuring that the material(s) referenced in the Supply Agreement that are provided by IDEC for use in the PRODUCT are in full compliance
with the specifications registered. IDEC will provide BAXTER a Certificate of Analysis for Filling for the conjugated antibody component (bulk monoclonal antibody) and the non-biological
components. A list of the specific tests included on the Certificate of Analysis for Filling is illustrated in Appendix III, IV, and V. 

        5.5   Master
Production Records 

        5.5.1. BAXTER
may transcribe the manufacturing information into its own format and will obtain written approval from IDEC for each document version before manufacturing.
However, agreed upon changes to documentation will be handled as outlined by Change Management (see section 10). 

        5.6   Standard
Operating Procedures 

        5.6.1. BAXTER
is responsible for maintaining any SOPs required to manufacture, test, and store the PRODUCT at BAXTER and to support cGMPs. 

        5.7   Batch
Numbers 

        5.7.1. The
BAXTER manufacturing batch numbering system begins with the number 800000, with the first batch number assigned as 800001. The batch numbers are then issued
sequentially from that point at the time the batch record is issued, independent of specific drug product or fill date. Internal or external sublots may be assigned for process segregations of drug
product during processing. Internal (temporary) sublotting occurs when a given batch is segregated during processing and rejoined as one lot at the conclusion of a process. These sublots are assigned
a seventh place numeric designator (800001 becomes 8000011). External (permanent) sublotting occurs when a batch is permanently segregated. These batch numbers are assigned a seventh place alpha
designator (800001 becomes 800001A). The BAXTER packaging batch numbering system appends a sequential alpha character to the existing manufacturing batch number for each packaging sublot produced. 

        5.7.2. BAXTER
will use internally and as a reference, BAXTER's batch number, but IDEC's lot number will be printed on labels and cartons, and both numbers referenced in
intercompany documentation. 

        5.8   Dates
of Manufacture and Expiration 

        5.8.1. Date
of Manufacture—The date of the initiation of sterile filtration for filling of the Conjugated Antibody, Formulation Buffer and Sodium Acetate
components, and the date of the initiation of stoppering for the Reaction Vial component determines the date of manufacture of PRODUCT. 

        5.8.2. Expiration
Date—BAXTER will calculate the expiry date from the Date of Manufacture (5.8.1) using the shelf life approved by the FDA or other regulatory
agency as appropriate as communicated by IDEC to BAXTER. The expiration date will be the last day of the month computed above. 

        5.9   Manufacturing
and Equipment Data 

        5.9.1. BAXTER
is responsible for keeping records of equipment usage (previous product produced in non-dedicated equipment), cleaning, and any
maintenance/calibration performed. 

        5.9.2. BAXTER
is responsible for labeling all PRODUCT dedicated equipment and storing this equipment appropriately to prevent its use for other product(s). 

        5.10 Storage
and Shipment 

6

 

        5.10.1. Storage—BAXTER
will store the PRODUCT under conditions approved by IDEC. BAXTER will ensure that during storage before shipping of the PRODUCT there is
no possibility of interference, theft, product contamination, or admixture with any other materials. IDEC will provide details of any labeling requirements and container sealing and integrity. 

        5.10.2. Packaging
and Labeling for Transit—The PRODUCT will be suitably packaged and labeled for transit. IDEC is responsible for the configuration of the
shipping containers.    PRODUCT designated for shipment outside of the United States shall be labeled in accordance with Applicable Laws and Regulations. 

        5.10.3. Mixing
of PRODUCT—BAXTER will maintain proper segregation of the PRODUCT according to systems reviewed by IDEC. Different lots of a single PRODUCT or
different product types will not be mixed on a pallet. 

        5.10.4. Shipment
of PRODUCT—IDEC will authorize BAXTER to ship PRODUCT upon submission of a BAXTER shipment request form. Only released, finished, labeled
PRODUCT will be shipped by BAXTER to the United States designated distribution center identified by IDEC, except for PRODUCT samples required for testing. BAXTER will ship (in conformity with such
methods and procedures as are established by IDEC and BAXTER) finished, unlabeled PRODUCT to IDEC's licensee(s) upon request by IDEC. Any shipment of unapproved PRODUCT (other than test samples) or
PRODUCT under Quarantine from BAXTER requires prior written authorization by IDEC and BAXTER Quality. Requests for shipment of unlabeled vials to Europe will include information defining quantity and
bulk packaging and labeling instructions. 

        5.10.5. BAXTER
shall ship PRODUCT to designated sites following procedures approved by IDEC which conform to the Supply Agreement and the biologics license for the PRODUCT
using shipping containers and temperature controls/recorders validated or otherwise qualified and authorized by IDEC. 

        6.    QUALITY CONTROL    

        6.1   General

        6.1.1. The
testing activities for the PRODUCT that are to be performed by BAXTER should be in accordance with the Specifications in the Supply Agreement. In general, BAXTER
is responsible for performing tests and assays directly related to the filling operation; i.e., identity testing, uniformity by unit weight variation, pre-filtration bioburden, bulk and
finished PRODUCT sterility, etc., or as otherwise determined by agreement between IDEC and BAXTER in the Product Master Plan. In general, IDEC is responsible for PRODUCT release and stability assays
related to the conjugated antibody component and non-biological PRODUCT kit components. BAXTER is responsible for submitting unlabeled bulk and finished PRODUCT test samples to a mutually
agreed upon third-party contract laboratory such as Lancaster Laboratories for sterility testing. BAXTER will not sub-contract any analytical testing without the prior approval of IDEC. 

        6.2   Materials
supplied by BAXTER 

        6.2.1. Quality
control of materials supplied by BAXTER will be undertaken by BAXTER. BAXTER will notify IDEC of any investigations related to the storage and handling of any
raw materials used in the manufacturing process for the PRODUCT. 

        6.3   In-Process
and Finished PRODUCT Testing 

        6.3.1. BAXTER
will perform pre-filtration bioburden, bulk and finished PRODUCT sterility, and uniformity by unit weight variation testing as directed by IDEC
using approved 

7

 

specifications
and validated, or otherwise qualified, methods of analysis. BAXTER shall provide bulk and unlabeled finished PRODUCT sterility test samples to Lancaster Laboratories or other mutually
approved contract laboratory and shall review and approve sterility test results from said laboratory. 

        6.3.2. A
Certificate of Compliance and a Certificate of Analysis confirming that the PRODUCT has been manufactured, packaged and tested, and meets the requirements of the
Master Batch Record and appropriate approved specifications will be issued by the BAXTER Quality Unit. The current release documentation information can be found in Appendix II. 

        6.3.3. IDEC
or its licensees may perform testing to confirm or supplement the BAXTER data. IDEC may perform confirmatory testing during the initial term of the Supply
Agreement to validate the BAXTER data. Periodically thereafter, IDEC may test material to confirm the BAXTER data. Dispute resolutions of conflicting test data will be handled per Section 9. 

        6.3.4. Shipping
of samples to IDEC or the third party contract laboratory will be per a validated or otherwise qualified shipping method, provided by IDEC. 

        6.4   Retain
Samples 

        6.4.1. IDEC
is responsible for storing retain samples of formulated bulk and finished PRODUCT per 21 CFR 211.170. 

        6.5   Routine
Stability Program 

        6.5.1. IDEC
is responsible for maintaining a routine stability-testing program for the PRODUCT. BAXTER will label and ship samples of PRODUCT to IDEC for placement on the
stability program, as directed by IDEC by submission of a sample request form. IDEC is responsible for identifying the batch number and quantity of samples for each lot to be shipped. 

        6.6   Out-of-Specification
(OOS) Investigations 

        6.6.1. BAXTER
is responsible for investigating any testing performed by BAXTER that fails to meet specifications and notifying IDEC within 24 hours of the initiation
of any investigation. Each investigation will be reviewed by BAXTER's designated Quality representative, and will follow the procedures recommended by regulatory agencies and as defined in appropriate
BAXTER SOPs for OOS Investigations. All completed investigation reports will be included in the released, executed batch record that will be provided to IDEC. 

        7.    QUALITY ASSURANCE    

        7.1   Deviations
(Variances) and Investigations 

        7.1.1. Deviations
and Investigation Reports—Any deviation from the process during manufacture, including but not limited to, batch record execution, and
environmental monitoring excursions or aseptic processing procedures, must be carefully explained and documented in the batch records. They must be justified and approved by BAXTER Quality Assurance
and the affected area management, and included in the document package. Investigations will be communicated to IDEC within 24 hours of the initiation of the investigation. Batch records that
contain process deviations will be highlighted to IDEC. All investigations related to PRODUCT shall be forwarded to IDEC for review as part of the released, executed batch record. IDEC may review such
investigation reports and has final disposition of any batch of PRODUCT. 

        7.1.2. Failure
Investigations—BAXTER is responsible for investigating any test result or in-process test, which fails to meet specifications. Each
investigation will be reviewed and 

8

 

approved
by BAXTER's designated quality representative. The investigation must document that any failure has not jeopardized the safety, identity, strength, purity, or quality of the PRODUCT. As
PRODUCT experts, IDEC may conduct its own independent failure investigation, and may participate in the BAXTER Failure Investigation, as applicable. 

        7.1.3. IDEC
will authorize the destruction of any batch of PRODUCT aborted or rejected by BAXTER. 

        7.1.4. BAXTER
will provide verbal notification to IDEC if any problems are discovered, including review of media fills and environmental monitoring trending, that may impact
PRODUCT batch(es) previously shipped to IDEC or its distributor(s) or licensee(s) within 24 hours of initiation of the investigation and will follow with written notification promptly
thereafter. 

        7.1.5. Some
deviations/failures may require that additional testing, stability, or validation be conducted. This work may be performed by IDEC and/or BAXTER as agreed by
both parties. 

        7.2   Batch
Disposition 

        7.2.1. For
each batch, BAXTER will provide the documentation required in Appendix II. 

        7.2.2. Certificate
of Compliance 

        BAXTER
is responsible for ensuring and certifying that the PRODUCT has been manufactured according to the specifications/procedures documented in the Master Batch Records. 

        BAXTER
QA Representative will sign a Certificate of Compliance confirming that the PRODUCT has been manufactured and tested according to the requirements as defined in Appendix II
and the Master Batch Record. 

        7.3   Product
Release 

        7.3.1. Release
of the PRODUCT is the absolute responsibility of IDEC and will be undertaken by IDEC based on IDEC's internal procedures, the full document package provided
by BAXTER (Appendix II), and completion of any release testing required by IDEC. 

        7.3.2. Any
problem discovered by IDEC likely to cause rejection of the PRODUCT will be communicated to BAXTER within the later of 15 days from receipt of the full
release documentation package or within 45 calendar days following receipt of PRODUCT Samples (see Appendix II). If these conditions cannot be met, IDEC will notify BAXTER and provide a new
target date for completion and justification for the extension. 

        7.3.3. IDEC
will communicate within 15 days, any problem confirmed by IDEC that is a change in acceptability of a previously IDEC supplied material received at
BAXTER. BAXTER will evaluate the status change for impact to BAXTER systems. 

        7.4   Product
Complaints and Recalls 

        7.4.1. Product
Complaints—IDEC is responsible for receiving and initially investigating any PRODUCT complaints. IDEC will notify BAXTER within 2 days of
discovery of any problems thought to be due to manufacture, which are found during the distribution of the PRODUCT. When requested by IDEC, BAXTER will promptly perform investigations for these
problems. Investigation reports will be forwarded to IDEC within 30 days or BAXTER will notify IDEC and provide a new target date for completion and justification for the extension 

9

  

        7.4.2. Product
Recall—IDEC is responsible for instituting a PRODUCT recall that IDEC deems necessary. IDEC will notify BAXTER of any recall within 2 days
of initiation, which may be due to the manufacturing of PRODUCT. BAXTER will provide a rapid initial response and/or an interim report within five (5) working days of such notice. 

        7.5   Records
Retention 

        7.5.1. BAXTER
will initially retain batch production records for the PRODUCT and materials for one year after expiration, then electronically archive and send the original
and an electronic copy to IDEC. 

        7.5.2. BAXTER
will not destroy any batch production records without first obtaining written approval from IDEC. 

        7.6   Manufacturing
and Quality Presence in the Manufacturing Facility 

        7.6.1. BAXTER
will maintain adequate, qualified Manufacturing and Quality personnel in the manufacturing facility during the manufacture of the PRODUCT to ensure compliance
with cGMPs and the consistent manufacture of PRODUCT. 

        7.6.2. BAXTER
will permit IDEC presence in the manufacturing facility during the manufacture and testing of the PRODUCT and on-site presence for purposes of
record and data review. 

        7.7   Adverse
Events 

        7.7.1. IDEC
shall advise BAXTER of any adverse medical event or adverse drug event within two days of IDEC's receipt of notice thereof if determined to be related to
manufacturing. 

        8.    REGULATORY COMPLIANCE    

        8.1   Regulatory
Inspections 

        8.1.1. [CONFIDENTIAL TREATMENT REQUESTED].

        [CONFIDENTIAL TREATMENT REQUESTED]. 

        8.1.2. BAXTER
will secure the agreement of IDEC prior to making any commitment to a regulatory agency regarding PRODUCT. IDEC shall be provided with draft responses to
regulatory observations that directly involve the PRODUCT and its manufacture prior to submission to the regulatory authorities and BAXTER shall permit IDEC's input into responses and corrective
actions. BAXTER shall retain the final authority for the content of the responses to the regulatory authority. 

        8.1.3. BAXTER
will promptly forward to IDEC any observations and responses from a routine regulatory inspection relating to the facility where IDEC's PRODUCT is
manufactured. 

        8.1.4. IDEC
will inform BAXTER in writing of any regulatory issue that impacts BAXTER's ability to manufacture the PRODUCT. 

        8.1.5 BAXTER
will forward to IDEC a redacted summary of any observations and responses from other clients' product inspections to the extent that such observations and
responses relate directly to PRODUCT or directly to BAXTER's ability to supply PRODUCT; provided, however, BAXTER is not required to disclose any client confidential information. 

10

 

        8.2   Regulatory
Actions 

        8.2.1. IDEC
will notify BAXTER of any regulatory actions related to the PRODUCT that will impact BAXTER. 

        8.2.2. BAXTER
is responsible for supporting all batch record investigations associated with regulatory actions. 

        8.2.3. Each
party agrees to supply the other with any manufacturing, testing, or storage data within 48 hours, if requested, as the result of a regulatory inspection,
or a potential regulatory exposure such as a recall or significant product complaint. 

        8.3   Right
to Audit 

        8.3.1. BAXTER
will allow representatives from IDEC to have access to their manufacturing, warehousing, laboratory premises, records, regulatory filings (e.g., DMF) and
communications (e.g., FDA483s) for audit purposes listed below in 8.3.2 through 8.3.4; provided, however, BAXTER has the obligation to protect the confidential information of its clients. 

        8.3.2. BAXTER
will permit IDEC to conduct preparatory audits of cGMP manufacture of the PRODUCT for pre-approval inspection for PRODUCT. 

        8.3.3. BAXTER
will permit IDEC to conduct audits to address significant PRODUCT quality or safety problems as discovered through PRODUCT failures or complaints related to
BAXTER's manufacturing of the PRODUCT. 

        8.3.4. BAXTER
will permit IDEC to perform two standard cGMP compliance audits per year. 

        8.3.5. IDEC
may audit any vendors, contractors, or subcontractors that are utilized by BAXTER. BAXTER will use reasonable efforts to cause such vendors, contractors or
subcontractors to allow such audits. 

        8.3.6. Subject
to the execution of a confidential disclosure agreement among BAXTER, IDEC and IDEC's licensee(s), BAXTER will permit access by IDEC's licensees to BAXTER's
premises for audit purposes, consistent with the limitations listed in 8.3.2 through 8.3.4. IDEC will accompany the licensees during each audit, provided the audit is directly related to IDEC's
PRODUCT. 

        8.4   Audit
Closeout 

        8.4.1. An
exit meeting will be held with representatives from BAXTER and IDEC to discuss significant audit observations. 

        8.4.2. IDEC
will provide a written report of all observations within 30 days to BAXTER. Within 30 days of the audit report receipt, BAXTER will provide a
written response to all findings that details corrective action to be implemented. BAXTER will follow up to ensure that all corrective actions are implemented. 

        8.5   Disclosure
of Information and Regulatory Report 

        8.5.1. The
Parties recognize that the holder of a Biologics License Application or Regulatory Approval may be required to submit information and file reports with various
governmental agencies. To ensure that IDEC will be able to fulfill such obligations, BAXTER agrees that it will promptly disclose to IDEC any and all relevant information, data or changes (prior to
implementation) that impact PRODUCT or global regulatory filings. In addition, BAXTER further agrees that it will report in writing all changes (other than nonmaterial 

11

 

changes
which would not affect regulatory approvals or submissions) related to PRODUCT regarding facilities (areas), equipment, procedures/documentation and personnel at least once annually. Such
reports will include any contemplated efforts to manufacture or process compounds other than those related to PRODUCT in areas or employing equipment that is used to provide PRODUCT. In the event that
no changes related to PRODUCT are contemplated or implemented during any particular year, BAXTER shall file a report attesting to that fact. 

        9.    DISPUTE RESOLUTION    

        9.1   Non-Conformity
Dispute 

        9.1.1. In
the event that a dispute arises between BAXTER and IDEC in the non-conformity of a batch of the PRODUCT, the heads of Quality from both companies shall
in good faith promptly attempt to reach an agreement. Whatever the outcome, IDEC retains the absolute right to determine product release status. Financial liability is determined in the Supply
Agreement. 

        9.2   Test
Result Dispute 

        9.2.1. In
the event that a dispute arises between BAXTER and IDEC in the testing performed by BAXTER for the PRODUCT, the resolution will proceed in stages. The first stage
requires direct communication between Quality management from both parties to determine that the methods of analysis are the same and are being executed in the same manner at the applicable sites.
Second, carefully controlled and split samples should be sent from one site to another in an attempt to reach agreement. Should there be a failure to achieve resolution, QC Management from the parties
will be required to meet to work through the analysis of a mutually agreeable sample. If these actions fail to achieve resolution, and only after these avenues have been exhausted, a qualified referee
laboratory will be used to achieve resolution. This laboratory must be agreeable to both parties prior to use. The results from this referee laboratory will be used as final authority to determine
responsibilities, but whatever the outcome, IDEC retains the right to determine product release status. Financial liability is determined in the Supply Agreement. 

        10.    CHANGE MANAGEMENT    

        10.1 All
proposed changes go through a technical, regulatory, and cGMP impact assessment by the BAXTER expert groups. The documents that contain IDEC's intellectual property
or changes that may affect IDEC's regulatory submissions will also go through IDEC's assessment for regulatory advice and implementation requirements, as per the agreements between IDEC and BAXTER. 

        10.2 The
scope of such a Change Management process includes Chemical Manufacturing, Pharmaceutical Manufacturing and Packaging processes. The associated changes may relate
to: the Master Batch Records (e.g. Master Formulas, Filling, Packaging); Bills of Materials; Specifications and Test Methods (for Raw Materials and Finished PRODUCT); Purchase Specifications (for Raw
Materials and Packaging Components); CLIENT specific Validated Equipment; Facilities; Utilities; or Computer Systems. 

        10.3 The
Parties will assess changes within 15 working days and those changes marked urgent within 5 working days. 

        11.    PRODUCT AND PROCESS VALIDATION    

        11.1 Process
Validation—IDEC and BAXTER are responsible for ensuring that the manufacturing process is validated. BAXTER is responsible for ensuring that the
facilities, utilities 

12

 

and
support systems are validated. The validation should ensure that the process is capable of consistently achieving the PRODUCT acceptance specification. BAXTER shall provide adequate resources to
execute process validations as per mutually approved protocols. 

        11.2 Cleaning
Verification/Validation—BAXTER is responsible for ensuring that adequate cleaning of product contact parts used in the manufacture of PRODUCT is
carried out between batches of different product to prevent contamination. IDEC will provide information (i.e. LD50, toxicity, solubility, batch size, fill volume, product max human dose (MHD)) to
establish cleaning limits. Until such time as the cleaning procedure and analytical methodology is validated, IDEC will purchase new product contact equipment; including but not limited to, glass
receiving vessels and filling needles, to be used in the manufacture of all PRODUCT batches. 

        11.3 Equipment,
Computer, Facility, and Utilities Qualification—BAXTER is responsible for all equipment, computer, facility, and utility qualification activities
associated with the PRODUCT consistent with applicable regulatory requirements. 

        11.4 Laboratory
Qualification—BAXTER is responsible for ensuring that all laboratories are in compliance with cGMPs and are qualified in all of the methodology
associated with the PRODUCT. If PRODUCT specific analytical work is performed at BAXTER then IDEC will provide any relevant analytical documentation to assist in methods transfer or methods
validation. BAXTER is responsible for third party laboratory qualification and assurance that analytical methods are validated. IDEC shall have the right to participate in vendor audits along with
BAXTER, as IDEC deems necessary. 

        12.    NOTIFICATION OF NEW PRODUCT CLASSIFICATION    

        12.1 BAXTER
will notify IDEC prior to introducing a new product, either approved or unapproved, into the preparation, formulation, and filling area used for the manufacture
of PRODUCT. IDEC and BAXTER will assure that appropriate regulatory approvals will be obtained prior to actual introduction of the new product into the manufacturing facility. 

        13.    ANNUAL PRODUCT REVIEW, ANNUAL REPORT AND DRUG LISTING    

        13.1 Product
Review 

        13.1.1. BAXTER
will perform an Annual Product Review for the PRODUCT and will issue a report to IDEC. This report will cover all manufacturing and testing activities
performed by BAXTER. It will consist of a review of any changes at BAXTER in the manufacturing, testing, storage, shipping or validation of the PRODUCT in the previous calendar year and a summary of
lots made, released, and rejected. Also, control charting and summarizing of key PRODUCT parameters will be performed. Any abnormalities will be explained in the annual review. BAXTER will provide the
requested information to IDEC annually commencing with the start of commercial production. Trend analysis of environmental data will be available for review during annual audits. 

        13.2 Annual
Report 

        13.2.1. IDEC
is responsible for preparing any Annual Report as required by applicable regulations, including 21 CFR 314.7(g)(3), 314.81(b)(2), and/or 601.12(d), (f)(3). At
least 90 calendar days before the Annual Report due date, IDEC shall request in writing from BAXTER the chemistry, manufacturing, and controls data required for submission of the Annual Report. BAXTER
will provide the requested information to IDEC within 30 days. 

        13.3 Drug
Listing 

        13.3.1. BAXTER
is responsible for drug listing as the manufacturer of the PRODUCT, while IDEC is responsible for drug listing as the distributor of the PRODUCT. IDEC will
provide BAXTER with all information needed by them for their listing, including date of approval and PRODUCT launch to the market within three days of such dates, as and to the extent required by
Applicable Laws and Regulations. 

13

  

 
 

APPENDIX I—List of Quality Contacts
  (Name, phone, fax, e-mail)    
    

	ISSUE
 
	 	IDEC
	 	BAXTER

	Product Release	 	Fanzia Mohammed

Ph: (858) 431-8505

Fax: (858) 431-8152

fmohammed@idecpharm.com	 	Carol Winnefeld

Ph: (812) 333-0887

Fax: (812) 333-3079

carol_winnefeld@baxter.com
	

QC Testing	
 	

Mark Rosen

Ph: (858) 431-8537

Fax: (858) 431-8751

mrosen@idecpharm.com	
 	

Bryan Hudson/Dan Larrimore

Ph: (812) 333-0887

Fax: (812) 333-3079

Bryan_Hudson@baxter.com

Dan_larrimore@baxter.com
	

Investigations	
 	

Fanzia Mohammed

Ph: (858) 431-8505

Fax: (858) 431-8152

fmohammed@idecpharm.com	
 	

Susan Easton/ Jennifer Walls

Ph: (812) 333-0887

Fax: (812) 333-3079

Susan_Easton@baxter.com

Jennifer_walls@baxter.com
	

Stability	
 	

Roya Ravan

Ph: (858) 431-8587

Fax: (858) 431-8751

rravan@idecpharm.com	
 	

Bryan Hudson

Ph: (812) 333-0887

Fax: (812) 333-3079

Bryan_Hudson@baxter.com
	

Validation	
 	

Kathleen Houck

Ph: (858) 431-8605

Fax: (858) 431-8152

khouck@idecpharm.com	
 	

Dave Abram

Ph: (812) 333-0887

Fax: (812) 333-3079

Dave_abram@baxter.com
	

Compliance Audits	
 	

Neno Segura

Ph: (858) 431-8678

Fax: (858) 431-8751

nsegura@idecpharm.com	
 	

Aaron Turner

Ph: (812) 333-0887

Fax: (812) 333-3079

Aaron_turner@baxter.com
	

Product Complaints	
 	

Fanzia Mohammed

Ph: (858) 431-8505

Fax: (858) 431-8152

fmohammed@idecpharm.com	
 	

Carol Winnefeld

Ph: (812) 333-0887

Fax: (812) 333-3079

Carol_winnefeld@baxter.com
	

Change Management	
 	

Mikel Edwards

Ph: (858) 431-8683

Fax: (858) 431-8751

medwards@idecpharm.com	
 	

Jennifer Walls/Kelly Davis

Ph: (812) 333-0887

Fax: (812) -333-3079

Jennifer_walls@baxter.com

Kelly_davis@baxter.com
	

CMC Regulatory Issues	
 	

Art Blum

Ph: (858) 431-8341

Fax: (858) 431-8889

ablum@idecpharm.com	
 	

Kelly Davis

Ph: (812) 333-0887

Fax: (812) 333-3079

Kelly_davis@baxter.com

14

  

 
 

APPENDIX II—Release Documentation    
    

 A Certificate of Analysis (C of A) 

        This
document will include the name of the PRODUCT, the batch number and the date of manufacture. The C of A will list the finished PRODUCT test results and PRODUCT disposition. 

 A Certificate of Compliance (C of C) 

        This
document will attest to the fact that the batch of PRODUCT was made in accordance with applicable SOPs, Batch Record and the Product Master Plan. It will state that all deviations
were documented and, if necessary, investigated 

 Raw Data  

        In addition to the foregoing, BAXTER will provide a copy of the raw data for the in-process QC tests and release tests to IDEC. 

 Executed Batch Records and Environmental Monitoring Data  

        BAXTER will provide copies of environmental monitoring data related to the manufacture of PRODUCT, and the executed Batch Records including investigation reports
and process deviation reports. 

15

  

 
 

APPENDIX III—Certificate of Analysis for Filling: Conjugated Antibody Component    
    

Zevalin
2B8-MX-DTPA Bulk 

	TEST CODE
 
	 	TEST NAME
 
	 	SPECIFICATION
 
	 	RESULT

	QBC-102	 	Protein Concentration	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	 
	

QGM-001	
 	

PH	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	

 
	

QBC-120	
 	

Bacterial Endotoxins	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	

 
	

QMB-038	
 	

Bioburden	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	

 

	

    

	

Prepared By:	
 	

    
	
 	

Date:	
 	

    

	    

	

o All tests passed
	o Not all tests passed
	

    
	
 	

Date:	
 	

    

	Quality Control	 	 	 	 

16

  

 
 

APPENDIX IV—Certificate of Analysis for Filling: Formulation Buffer Component    
    

Formulation Buffer Bulk  

	TEST CODE
 
	 	TEST NAME
 
	 	SPECIFICATION
 
	 	RESULT

	QMB-038	 	Bioburden	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	 
	

QGM-001	
 	

pH Determination	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	

 
	

QRM-056	
 	

HSA Concentration	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	

 
	

QBC-120	
 	

Bacterial Endotoxins	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	

 

	

    

	

Prepared By:	
 	

    
	
 	

Date:	
 	

    

	    

	

o All tests passed
	o Not all tests passed
	

    
	
 	

Date:	
 	

    

	Quality Control	 	 	 	 

17

  

 
 

APPENDIX V    
    

 
  Certificate of Analysis for Filling: Sodium Acetate Component    
    

 50 mM Sodium Acetate Bulk  

	TEST CODE
 
	 	TEST NAME
 
	 	SPECIFICATION
 
	 	RESULT

	QMB-038	 	Bioburden	 	[CONFIDENTIAL TREATMENT REQUESTED]	 	 
	

QBC-120	
 	

Bacterial Endotoxins	
 	
[CONFIDENTIAL TREATMENT REQUESTED]	
 	

 

	

    

	

Prepared By:	
 	

    
	
 	

Date:	
 	

    

	    

	

o All tests passed
	o Not all tests passed
	

    
	
 	

Date:	
 	

    

	Quality Control	 	 	 	 

18

   APPENDIX VI  

List of Standard Operating Procedures utilized in the Manufacture of PRODUCT 

[Omitted]

19

 
 

EXHIBIT 9    
    

        
Regulatory Plan 

IDEC
and

BAXTER PHARMACEUTICAL SOLUTIONS LLC (BAXTER)

May 8, 2002 

	Primary Contact—	 	Art Blum

Sr. Director of Regulatory Affairs

IDEC

3030 Callan Road

San Diego, CA 92121

Ph: 858-431-8341

Fax: 858-431-8889

E-mail: ablum@idecpharm.com
	

Secondary Contact—	
 	

Hector Tamburini

Director of Pharmaceutical Product and Development

Ph: 858-431-8494

Fax: 858-431-8750

E-mail: htamburini@idecpharm.com
	

Contact at BAXTER—	
 	

Kelly A. Davis

Regulatory Affairs Supervisor

Ph: 812-333-0887

Fax: 812-332-3079

E-mail: kelly davis@baxter.com
	

 	
 	

Judy Salyer

Project Manager

Ph: 812-333-0887

Fax: 812-332-3079

E-Mail: judy salyer@baxter.com
	

Product Description—	
 	

Zevalin/Formulation Buffer/Reaction Vial/50 mM Sodium

Acetate/2B8-MX-DTPA Conjugated Antibody
	

 	
 	

This product is for the treatment of non-Hodgkins lymphoma.

Purpose of Plan— The following services are available to IDEC and will be billed only if and when specifically requested in writing by IDEC to Baxter. Nothing in
this Regulatory Plan shall be construed as committing IDEC to accepting any of the following services without IDEC first giving the appropriate written notice therefor.

Raw Materials & Components— Refer to the appropriate Project Plan. 

BAXTER Regulatory  

In
accordance to the 21 CFR 601.12, Changes to an Approved Application, and as agreed upon by both parties, BAXTER will supply documentation to support the Zevalin Biologic License Application (BLA).
The BLA documentation will consist of two primary parts; the chemistry, manufacturing and control information and the establishment description information. This documentation may include  one copy of
each of the following: 

Part 1—Product Description Section

1.0
Description of Manufacturer 

        1.1   Name
and Address 

        1.2   List
of biological products manufactured (reference Type V DMF) 

2.0
Composition of the Drug Product 

3.0
Methods of Manufacturing and Packaging 

        3.1   Description
of Manufacturing Process Flow (Narrative and Diagrams) 

        3.1.1 Raw
Material Flow 

        3.1.2 Formulation
Flow 

        3.1.3 Container/Stopper/Filling
Equipment Flow 

        3.1.4 Filling
Flow 

        3.1.5 Transfer
From Building A to Building B 

        3.1.6 Inspection
Flow 

        3.1.7 Labeling/Packaging
Flow 

        3.2   Environmental
Monitoring 

        3.2.1 Description
of Environmental Monitoring 

        3.2.2 Environmental
Monitoring Specifications 

        3.2.3 Environmental
Monitoring Results during Production Batches 

        3.2.4 Environmental
Controls 

        3.2.4.1 Sanitation
Procedure 

        3.2.4.2 Area
Classifications 

        3.2.4.3 Description
of Procedure for Exceeded Limits 

4.0
Specifications and Test Methods 

        4.1   Certificates
of Analysis—Raw Materials 

        4.2   Certificates
of Analysis—Primary Packaging Components 

        4.3   Certificates
of Analysis—Finished Product 

        4.4   Finished
Product and Raw Material Sampling Procedures 

5.0
Container/Closure System 

6.0
Microbiology 

        6.1   Depyrogenation/Sterilization
Validation of Containers/Closures/Filling Equipment 

        6.2   Description
of Filter Components 

        6.3   Critical
Holding Periods 

        6.4   Description
of Media Fills 

        6.5   Media
Fill Environmental Monitoring 

        6.6   Description
of Procedure for Media Fill Failures 

7.0
Executed Production Batch Records 

Part 2—Establishment Description Section

1.0
General Information 

        1.1   Floor
diagram of the facility 

        1.2   Product,
personnel, equipment, waste and air flows (narrative and diagrams) 

        1.3   Indication
of areas which are served by each air handling unit (narrative and diagram) 

2.0
Water Systems 

        2.1   General
Description 

        2.2   Validation
Summary 

        2.2.1 Description
of the validation protocol 

        2.2.2 Dates
of IQ and OQ completion 

        2.2.3 Length
of the validation period 

        2.2.4 Parameters
monitored and tests performed 

        2.2.5 Frequency
of monitoring of each point of use during the validation period 

        2.2.6 Validation
data summary 

        2.2.7 Explanation
of all excursions during validation 

        2.3   Routine
Monitoring Program 

        2.3.1 Tests
performed and specifications 

        2.3.2 Frequency
of tests 

        2.3.3 Description
of action to be taken when limits are exceeded 

3.0
Heating, Ventilating and Air Conditioning Systems (HVAC) 

        3.1   General
Description 

        3.2   Validation
Summary 

        3.2.1 Description
of the validation protocol 

        3.2.2 Dates
of IQ, OQ and current filters certifications 

        3.2.3 Length
of the validation period 

        3.2.4 Validation
data summary 

        3.2.5 Explanation
of all excursions during validation 

        3.3   Routine
Monitoring Program 

        3.3.1 Tests
performed and specifications 

        3.3.2 Frequency
of tests 

        3.3.3 Description
of action to be taken when limits are exceeded 

4.0
Contamination/Cross Contamination Issues 

        4.1   Cleaning
Procedures and Validations for Dedicated Equipment 

        4.2   Cleaning
Procedures and Validations for Shared Equipment 

        4.3   Containment
Features 

        4.3.1 Description
of segregation and containment procedures for areas, manufacturing operations, personnel, equipment and waste materials 

        4.3.1.1 Personnel
gowning procedures 

        4.3.1.2 Sanitization
procedures 

        4.3.1.3 Aseptic
technique and training 

        4.3.2 Air
pressure differentials between adjacent manufacturing areas 

        4.3.3 Segregation
of air handling units 

        4.3.4 Air
supply and return 

        4.3.5 Use
of airlocks 

5.0
Computer Systems 

        5.1   Narrative
of the validation process 

        5.2   Dates
of IQ and OQ 

        5.3   Description
of parameters monitored and tests performed 

        5.4   Validation
data summary 

        5.5   Explanation
of all excursions and deviations 

References:  

Content
and Format of Chemistry, Manufacturing and Controls Information and Establishment Description information for a Biological in Vitro Diagnostic Product (1999) 

Submission
of Documentation for Sterilization Process Validation in Applications for human and Veterinary Drug Products (1994) 

Submitting
Documentation for Packaging for Human Drugs and Biologics (1987) 

Submission Timeline:  

If
requested by CLIENT, a final draft of the supplement documentation will be submitted by BAXTER to CLIENT by a date determined by mutual agreement of the parties, for review by CLIENT. CLIENT will
provide BAXTER with its comments on such draft as soon as practicable after receipt and BAXTER will thereafter provide CLIENT with final supplement documentation, incorporating CLIENT's comments
complete and ready for submission to the FDA, by not later than thirty (30) days after receipt by BAXTER of CLIENT's comments. 

Required from CLIENT: To the extent that CLIENT requests services under this Regulatory Plan from BAXTER,

	1.
	CLIENT
is responsible for keeping BAXTER supplied with the most current methods and specifications

	2.
	CLIENT
will summarize and provide written comments from one primary contact. These comments will be reflective of CLIENT'S entire internal comments.

	3.
	BAXTER
will be allowed at least 5 working days from date of receipt to respond to CLIENT written comments. If 5 working days are not allowed, regardless of the
reason, a fee of at least $2500 per occurrence may be assessed which is dependent on the amount of effort required by BAXTER.

	4.
	CLIENT
will provide one copy of the BAXTER portion of the final submission. 

Project Price:  

	1.
	Total
estimated regulatory support is [CONFIDENTIAL TREATMENT REQUESTED]. Any requested support outside the
confines of the agreement will be billed separately at a rate of [CONFIDENTIAL TREATMENT REQUESTED]. 

  

 
 

Exhibit 10 - A
  Temperature Controlled Product
  Shipping Requirements Document    
    

IDEC
Pharmaceuticals

Product Description: ZevalinTM Indium Kit (IDEC-154) 

	Ship to Account:	 	IDEC Pharmaceuticals
	Ship to Customer:	 	ICS / IDEC Pharmaceuticals
	Ship to Contact:	 	ICS, Jenny Brian
	Ship to Phone:	 	502-964-3300
	Ship to Fax:	 	502-966-4166
	Ship to Address:	 	5051 Commerce Crossing Drive

Louisville, KY 40229

Designated
Carrier: Federal Express Custom Critical, White Glove Service 

Transit
Time: 3 hours 

Special
Shipping Conditions: Truck temperature set-point [CONFIDENTIAL TREATMENT REQUESTED] with temperature recorder. Temperature Range [CONFIDENTIAL
TREATMENT REQUESTED] 

Special Shipping Services:  

	•
	Carrier
Booked by Baxter Shipping Department

	•
	Baxter
Shipping Department to request temperature control truck with a minimum length of 20 feet and not to exceed 24-feet in length with temperature recorder.
The carrier must provide the shipper calibration documentation on temperature monitoring/recording equipment.

	•
	Carrier's
Bill of Lading must state: "Must Call ICS at 502-964-3300 for delivery appointment" and "Ship Temperature Control [CONFIDENTIAL
TREATMENT REQUESTED] set-point." 

 
 

The Shipment of ZevalinTM Indium Kits from Baxter
  Pharmaceuticals Solutions is to be made per the following
  instructions    
    

	Comments:	 	    

	

    

	

    

	

    

1

 

Record
information in each section as indicated and then initial and date when complete. Have a second person verify the information and then initial and date when complete 

	Comments:	 	    

	

    

	

    

	

    

2

 

PRODUCTION BATCH  

	Lot Number:	    
	 	 	Packaging Order Number:	    

	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    

	

Lot Number:	

    
	

 	
 	

Packaging Order Number:	

    

	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    

	

Lot Number:	

    
	

 	
 	

Packaging Order Number:	

    

	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    

TEMPERATURE DATA LOGGER  

Manufacturer:
Sensitech

Model: Temptale3, 2K, Single Use, without probe

Number Required per Shipment: 2

Note: If product is shipped with IDEC Yttrium Kits (IDEC 156) on the same truck, a total of two Temptale3 devices are required per truck. 

Temperature
Recorder 

	Serial Number:	    
	 	Initials & date	    
	 	Initials & date	    

	

Serial Number:	

    
	
 	

Initials & date	

    
	
 	

Initials & date	

    

SHIPPING PACKAGING MATERIALS  

Not
Applicable 

REFRIGERANT  

Not
Applicable 

	Comments:	 	    

	

    

	

    

	

    

3

 

PACK OUT PROCEDURE:  

Not
Applicable 

PALLETIZATION REQUIREMENTS  

None.
Product is palletized during packaging operations. 

PRE LOADING PROCEDURE  

	Verify that the truck has current calibration documentation for its temperature recorder.
	Initials & date	    
	 	Initials & date	    

	
Verify the temperature recorder is operational.
	Initials & date	    
	 	Initials & date	    

	
Photocopy the temperature recorder calibration documentation
	Initials & date	    
	 	Initials & date	    

	
Attach the temperature recorder calibration documentation to the appendix.
	Initials & date	    
	 	Initials & date	    

	
Verify that the trailer temperature set point is 41° F (5° C)
	Initials & date	    
	 	Initials & date	    

	
Verify that the trailer is within 5° F(3°C) of the temperature set point.
	Initials & date	    
	 	Initials & date	    

LOADING PROCEDURE  

The
load configuration must be a minimum of 1 pallet and a maximum of 8 pallets. 

	Comments:	 	    

	

    

	

    

	

    

4

 

Pallets
of product must be: 

	•
	[CONFIDENTIAL
TREATMENT REQUESTED] 
	•
	[CONFIDENTIAL
TREATMENT REQUESTED] 
	•
	[CONFIDENTIAL
TREATMENT REQUESTED] 
	•
	[CONFIDENTIAL
TREATMENT REQUESTED]. 
	•
	[CONFIDENTIAL
TREATMENT REQUESTED]. 
	•
	[CONFIDENTIAL
TREATMENT REQUESTED] 

	Initials & date	    
	 	Initials & date	    

	
Verify that the temperature data recorder has been pre-configured
	Initials & date	    
	 	Initials & date	    

	
Activate the temperature data recorder
	Initials & date	    
	 	Initials & date	    

	
Place the temperature data recorder per the following instructions:

Once loading of the truck is complete, place the two Temptale3 devices on the selected pallets above the pallet label and secure the Temptale3 to the pallet.
Apply a layer of shrink-wrap over the temperature-recording device. 

	Initials & date	    
	 	Initials & date	    

Review the documentation for completeness 

	Print Name	 	    
	 	Print Name	 	    

	Signature	 	    
	 	Signature	 	    

	Date	 	    
	 	Date	 	    

	

Comments:	
 	

    

	

    

	

    

	

    

5

  

 
 

Exhibit 10 - B
  Temperature Controlled Product
  Shipping Requirements Document    
    

IDEC
Pharmaceuticals

Product Description: ZevalinTM Yttrium Kit (IDEC-156) 

	Ship to Account:	 	IDEC Pharmaceuticals
	Ship to Customer:	 	ICS / IDEC Pharmaceuticals
	Ship to Contact:	 	ICS, Jenny Brian
	Ship to Phone:	 	502-964-3300
	Ship to Fax:	 	502-966-4166
	Ship to Address:	 	5051 Commerce Crossing Drive

Louisville, KY 40229

Designated
Carrier: Federal Express Custom Critical, White Glove Service 

Transit
Time: 3 hours 

Special
Shipping Conditions: Truck temperature set-point [CONFIDENTIAL TREATMENT REQUESTED] with temperature
recorder. Temperature Range [CONFIDENTIAL TREATMENT REQUESTED] 

Special Shipping Services:  

	•
	Carrier
Booked by Baxter Shipping Department

	•
	Baxter
Shipping Department to request temperature control truck with a minimum length of 20 feet and not to exceed 24-feet in length with temperature recorder.
The carrier must provide the shipper calibration documentation on temperature monitoring/recording equipment.

	•
	Carrier's
Bill of Lading must state: "Must Call ICS at 502-964-3300 for delivery appointment" and "Ship Temperature Control  [CONFIDENTIAL TREATMENT REQUESTED] set-point." 

 
 

The Shipment of ZevalinTM Yttrium Kits from Baxter
  Pharmaceuticals Solutions is to be made per the following
  instructions    
    

	Comments:	 	    

	

    

	

    

	

    

1

 

Record
information in each section as indicated and then initial and date when complete. Have a second person verify the information and then initial and date when complete. 

	Comments:	 	    

	

    

	

    

	

    

2

 

PRODUCTION BATCH  

	Lot Number:	    
	 	 	Packaging Order Number:	    

	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    

	

Lot Number:	

    
	

 	
 	

Packaging Order Number:	

    

	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    

	

Lot Number:	

    
	

 	
 	

Packaging Order Number:	

    

	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    
	 	Initials & date	    

TEMPERATURE DATA LOGGER  

Manufacturer:
Sensitech

Model: Temptale3, 2K, Single Use, without probe

Number Required per Shipment: 2

Note: If product is shipped with IDEC Indium Kits (IDEC 154) on the same truck, a total of two Temptale3 devices are required per truck. 

Temperature
Recorder 

	Serial Number:	    
	 	Initials & date	    
	 	Initials & date	    

	

Serial Number:	

    
	
 	

Initials & date	

    
	
 	

Initials & date	

    

SHIPPING PACKAGING MATERIALS  

Not
Applicable 

REFRIGERANT  

Not
Applicable 

	Comments:	 	    

	

    

	

    

	

    

3

 

PACK OUT PROCEDURE:  

Not
Applicable 

PALLETIZATION REQUIREMENTS  

None.
Product is palletized during packaging operations. 

PRE LOADING PROCEDURE  

	Verify that the truck has current calibration documentation for its temperature recorder.
	Initials & date	    
	 	Initials & date	    

	
Verify the temperature recorder is operational.
	Initials & date	    
	 	Initials & date	    

	
Photocopy the temperature recorder calibration documentation
	Initials & date	    
	 	Initials & date	    

	
Attach the temperature recorder calibration documentation to the appendix.
	Initials & date	    
	 	Initials & date	    

	
Verify that the trailer temperature set point is 41° F (5° C)
	Initials & date	    
	 	Initials & date	    

	
Verify that the trailer is within 5° F(3°C) of the temperature set point.
	Initials & date	    
	 	Initials & date	    

LOADING PROCEDURE  

The
load configuration must be a minimum of 1 pallet and a maximum of 8 pallets. 

	Comments:	 	    

	

    

	

    

	

    

4

 

Pallets
of product must be: 

	•
	[CONFIDENTIAL TREATMENT REQUESTED]
	•
	[CONFIDENTIAL TREATMENT REQUESTED]
	•
	[CONFIDENTIAL TREATMENT REQUESTED]
	•
	[CONFIDENTIAL TREATMENT REQUESTED].
 
	•
	[CONFIDENTIAL TREATMENT REQUESTED].
	•
	[CONFIDENTIAL TREATMENT REQUESTED]

	Initials & date	    
	 	Initials & date	    

	
Verify that the temperature data recorder has been pre-configured
	Initials & date	    
	 	Initials & date	    

	
Activate the temperature data recorder
	Initials & date	    
	 	Initials & date	    

	
Place the temperature data recorder per the following instructions:

Once loading of the truck is complete, place the two Temptale3 devices on the selected pallets above the pallet label and secure the Temptale3 to the pallet.
Apply a layer of shrink-wrap over the temperature-recording device. 

	Initials & date	    
	 	Initials & date	    

Review the documentation for completeness 

	Print Name	 	    
	 	Print Name	 	    

	Signature	 	    
	 	Signature	 	    

	Date	 	    
	 	Date	 	    

	

Comments:	
 	

    

	

    

	

    

	

    

5

QuickLinks

Exhibit 1 Cancellation Fees

Exhibit 2 Product Specifications for Release Testing of Product Kits

Exhibit 3 Kit Component Specifications for Release Testing of 2B8-MX-DTPA Conjugated Antibody

Kit Component Specifications for Release Testing of 50 mM Sodium Acetate

Kit Component Specifications for Release Testing of Formulation Buffer

Kit Component Specifications for Release Testing of Reaction Vial

Exhibit 4

Exhibit 5 Regulatory Authorities and Countries

Exhibit 6

Exhibit 7 Pricing

Exhibit 8 INTERCOMPANY QUALITY AGREEMENT

TABLE OF CONTENTS

APPENDIX I—List of Quality Contacts (Name, phone, fax, e-mail)

APPENDIX II—Release Documentation

APPENDIX III—Certificate of Analysis for Filling: Conjugated Antibody Component

APPENDIX IV—Certificate of Analysis for Filling: Formulation Buffer Component

APPENDIX V

Certificate of Analysis for Filling: Sodium Acetate Component

EXHIBIT 9

Exhibit 10 - A Temperature Controlled Product Shipping Requirements Document

The Shipment of ZevalinTM Indium Kits from Baxter Pharmaceuticals Solutions is to be made per the following instructions

Exhibit 10 - B Temperature Controlled Product Shipping Requirements Document

The Shipment of ZevalinTM Yttrium Kits from Baxter Pharmaceuticals Solutions is to be made per the following instructionsQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 4.1  

 
 

MEDWAVE, INC.
  
    AND
  
    WELLS FARGO BANK MINNESOTA, N.A.
  
    AS RIGHTS AGENT
  
    SHAREHOLDER RIGHTS AGREEMENT
  
    DATED AS OF SEPTEMBER 29, 2003    
    

  

 
 

TABLE OF CONTENTS    
    

	Section
 
	 	 
	 	Page

	Section 1.	 	Certain Definitions	 	1
	Section 2.	 	Appointment of Rights Agent	 	5
	Section 3.	 	Issue of Right Certificates	 	5
	Section 4.	 	Form of Right Certificates	 	7
	Section 5.	 	Countersignature and Registration	 	8
	Section 6.	 	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	 	8
	Section 7.	 	Exercise of Rights; Exercise Price; Expiration Date of Rights	 	9
	Section 8.	 	Cancellation and Destruction of Right Certificates	 	10
	Section 9.	 	Reservation and Availability of Common Stock	 	11
	Section 10.	 	Common Stock Record Date	 	12
	Section 11.	 	Adjustment of Exercise Price, Number and Kind of Shares or Number of Rights	 	12
	Section 12.	 	Certificate of Adjusted Exercise Price or Number of Shares	 	19
	Section 13.	 	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	 	19
	Section 14.	 	Fractional Rights and Fractional Shares	 	21
	Section 15.	 	Rights of Action	 	22
	Section 16.	 	Agreement of Right Holders	 	22
	Section 17.	 	Right Certificate Holder Not Deemed a Shareholder	 	23
	Section 18.	 	Concerning the Rights Agent	 	23
	Section 19.	 	Merger or Consolidation or Change of Name of Rights Agent	 	23
	Section 20.	 	Duties of Rights Agent	 	24
	Section 21.	 	Change of Rights Agent	 	26
	Section 22.	 	Issuance of New Right Certificates	 	26
	Section 23.	 	Redemption	 	27
	Section 24.	 	Exchange	 	27
	Section 25.	 	Notice of Certain Events	 	29
	Section 26.	 	Notices	 	30
	Section 27.	 	Supplements and Amendments	 	30
	Section 28.	 	Successors	 	31
	Section 29.	 	Determinations and Actions by the Board of Directors	 	31
	Section 30.	 	Benefits of this Agreement	 	31
	Section 31.	 	Severability	 	32
	Section 32.	 	Governing Law	 	32
	Section 33.	 	Counterparts	 	32
	Section 34.	 	Descriptive Headings	 	32
	Exhibit A—Form of Right Certificate	 	 

i

 
 

SHAREHOLDER RIGHTS AGREEMENT    
    

        Agreement, dated as of September 29, 2003, between Medwave, Inc., a Delaware corporation (the
"Company"), and Wells Fargo Bank Minnesota, N.A., a national banking association (the "Rights Agent"). 

W
I T N E S S E T H 

        WHEREAS,
the Board of Directors of the Company desires to provide shareholders of the Company with the opportunity to benefit from the long-term prospects and value of the
Company and to ensure that shareholders of the Company receive fair and equal treatment in the event of any proposed takeover of the Company; and 

        WHEREAS,
on September 29, 2003 the Board of Directors of the Company authorized and declared a dividend distribution of one Right (as such term is hereinafter defined) for each
share of Common Stock, no par value, of the Company (the "Common Stock") outstanding as of September 30, 2003 (the
"Record Date"), and authorized the issuance of one Right for each share of Common Stock of the Company issued (whether or not originally issued or sold
from the Company's treasury, except in the case of treasury shares having associated Rights) between the Record Date and the earliest of the Distribution Date, the Redemption Date or the Expiration
Date (as such terms are hereinafter defined), each Right initially representing the right to purchase one share of Common Stock of the Company, upon the terms and subject to the conditions hereinafter
set forth (the "Rights"); and 

        WHEREAS,
the Company desires to appoint the Rights Agent to act as rights agent hereunder, in accordance with the terms and conditions hereof. 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows: 

        Section 1.    Certain Definitions.    For purposes of this Agreement, the following terms have the meanings
indicated: 

        (a)   "Acquiring Person" shall mean any Person (as such term is hereinafter defined) who or which, together with all Affiliates
(as such term is hereinafter defined) and Associates (as such term is hereinafter defined) of such Person, shall be the Beneficial Owner (as such term is hereinafter defined) of 15% or more of the
shares of Common Stock of the Company then outstanding, but shall not include (i) the Company, (ii) any Subsidiary (as such term is hereinafter defined) of the Company, (iii) any
employee benefit plan or compensation arrangement of the Company or any Subsidiary of the Company or (iv) any Person holding shares of Common Stock of the Company organized, appointed or
established by the Company or any Subsidiary of the Company for or pursuant to the terms of any such employee benefit plan or compensation arrangement (the Persons described in clauses
(i) through (iv) above are referred to herein as "Exempt Persons"); provided, however, that the term "Acquiring Person" shall not include
any Grandfathered Person, unless such Grandfathered Person becomes the Beneficial Owner of a percentage of the shares of Common Stock of the Company then outstanding equal to or exceeding such
Grandfathered Person's Grandfathered Percentage. 

        Notwithstanding
the foregoing, no Person shall become an "Acquiring Person" as the result of an acquisition by the Company of Common Stock of the Company which, by reducing the number of
shares outstanding, increases the proportionate number of shares Beneficially Owned by such Person to 15% (or in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such
Grandfathered Person) or more of the shares of Common Stock of the Company then outstanding; provided, however, that if a Person shall become the
Beneficial Owner of 15% (or in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) or more of the shares of Common Stock of the Company then
outstanding by reason of share purchases by the Company and shall, after such share purchases by the Company, become the Beneficial Owner of any additional shares (other than pursuant to a stock
split, stock dividend or similar transaction) of Common Stock of the Company and immediately thereafter be the Beneficial Owner of 15% (or in the case of a Grandfathered Person, the Grandfathered
Percentage applicable to such Grandfathered 

 

Person)
or more of the shares of Common Stock of the Company then outstanding, then such Person shall be deemed to be an "Acquiring Person." 

        In
addition, notwithstanding the foregoing, and notwithstanding anything to the contrary provided in the Agreement including without limitation in Sections 1(ii), 3(a) or 27, a Person
shall not be an "Acquiring Person" if the Board of Directors of the Company determines at any time that a Person who would otherwise be an "Acquiring Person," has become such without intending to
become an "Acquiring Person," and such Person divests as promptly as practicable (or within such period of time as the Board of Directors of the Company determines is reasonable) a sufficient number
of shares of Common Stock of the Company so that such Person would no longer be an "Acquiring Person," as defined pursuant to the foregoing provisions of this Section 1(a). 

        (b)   "Adjustment Shares" shall have the meaning set forth in Section 11(a)(ii) hereof. 

        (c)   "Affiliate" and "Associate" shall have the respective meanings ascribed
to such terms in Rule 12b-2 of the General Rules and Regulations (the "Rules") under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), as in effect on the date of this Agreement; provided, however, that no Person who is a director or officer of the Company
shall be deemed an Affiliate or an Associate of any other director or officer of the Company solely as a result of his or her position as director or officer of the Company. 

        (d)   A
Person shall be deemed the "Beneficial Owner" of, and shall be deemed to "Beneficially Own" and have "Beneficial Ownership" of, any securities: 

          (i)  which
such Person or any of such Person's Affiliates or Associates, directly or indirectly, Beneficially Owns (as determined pursuant to Rule 13d-3
of the Rules under the Exchange Act, as in effect on the date of this Agreement); 

         (ii)  which
such Person or any of such Person's Affiliates or Associates, directly or indirectly, has: 

        (A)  the
right to acquire (whether or not such right is exercisable immediately or only after the passage of time or upon the satisfaction of any conditions or both) pursuant
to any agreement, arrangement or understanding (whether or not in writing) (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public
offering of securities) or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; provided,
however, that a Person shall not be deemed the "Beneficial Owner" of, or to "Beneficially Own" or have "Beneficial Ownership" of, (1) securities tendered pursuant to a
tender or exchange offer made by or on behalf of such Person or any of such Person's Affiliates or Associates until such tendered securities are accepted for purchase or exchange;
(2) securities issuable upon exercise of Rights at any time prior to the occurrence of a Triggering Event; or (3) securities issuable upon exercise of Rights from and after the
occurrence of a Triggering Event, which Rights were acquired by such Person or any of such Person's Affiliates or Associates prior to the Distribution Date or pursuant to Sections 3(a),
11(i) or 22 hereof; or 

        (B)  the
right to vote pursuant to any agreement, arrangement or understanding (whether or not in writing); provided, however,
that a Person shall not be deemed the "Beneficial Owner" of, or to "Beneficially Own" or have "Beneficial Ownership" of, any security under this clause (B) if the agreement, arrangement or
understanding to vote such security (1) arises solely from a revocable proxy or consent given in response to a public proxy or consent solicitation made pursuant to a written proxy or consent
solicitation statement filed with the Securities and Exchange Commission in accordance 

2

 

with
the Rules of the Exchange Act and (2) is not also then reportable by such person on Schedule 13D under the Exchange Act (or any comparable or successor report); or 

        (C)  the
right to dispose of pursuant to any agreement, arrangement or understanding (whether or not in writing) (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public offering of securities); or 

        (iii)  which
are Beneficially Owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person or any of such Person's
Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing) (other than customary agreements with and between underwriters and selling group members with
respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy or consent as described in clause (B) of
Section 1(d)(ii) hereof) or disposing of any securities of the Company; 

provided, however, that (1) no Person engaged in business as an underwriter of securities shall be deemed the Beneficial Owner of any securities
acquired through such Person's participation as an underwriter in good faith in a firm commitment underwriting until the expiration of forty (40) days after the date of such acquisition, and
(2) no Person who is a director or an officer of the Company shall be deemed, as a result of his or her position as director or officer of the Company, the Beneficial Owner of any securities of
the Company that are Beneficially Owned by any other director or officer of the Company. 

        For
all purposes of this Agreement, the phrase "then outstanding," when used with reference to the percentage of the then outstanding securities Beneficially Owned by a Person, shall
mean the number of securities then issued and outstanding together with the number of such securities not then actually issued and outstanding which such Person would be deemed to Beneficially Own
hereunder. 

        (e)   "Business Day" shall mean any day other than a Saturday, Sunday, or a day on which banking institutions in the State of
New York are authorized or obligated by law or executive order to close. 

        (f)    "Certificate of Incorporation" when used in reference to the Company shall mean the Certificate of Incorporation, as may
be amended from time to time, of the Company. 

        (g)   "Close of Business" on any given date shall mean 5:00 p.m., New York, New York time, on such date;  provided, however, that if such date is not a Business Day it
shall mean 5:00 p.m., New York, New York time, on the next succeeding Business Day.
 

        (h)   "Common Stock" when used in reference to the Company shall mean the common stock, no par value, of the Company or any
other shares of capital stock of the Company into which such stock shall be reclassified or changed. "Common Stock" when used with reference to any Person other than the Company organized in corporate
form shall mean (i) the capital stock or other equity interest of such Person with the greatest voting power, (ii) the equity securities or other equity interest having power to control
or direct the management of such Person or (iii) if such Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person and which have
issued any such outstanding capital stock, equity securities or equity interest. "Common Stock" when used with reference to any Person not organized in corporate form shall mean units of beneficial
interest which (x) shall represent the right to participate generally in the profits and losses of such Person (including without limitation any flow-through tax benefits resulting
from an ownership interest in such Person) and (y) shall be entitled to exercise the greatest voting power of such Person or, in the case of a limited partnership, shall have the power to
remove or otherwise replace the general partner or partners. 

        (i)    "Common Stock Equivalents" shall have the meaning set forth in Section 11(a)(iii) hereof. 

3

 

        (j)    "Current Value" shall have the meaning set forth in Section 11(a)(iii) hereof. 

        (k)   "Depositary Agent" shall have the meaning set forth in Section 7(c) hereof. 

        (l)    "Distribution Date" shall have the meaning set forth in Section 3(a) hereof. 

        (m)  "Exempt Person" shall have the meaning set forth in the definition of "Acquiring Person." 

        (n)   "Exercise Price" shall have the meaning set forth in Section 4(a) hereof. 

        (o)   "Exchange Date" shall have the meaning set forth in Section 7(a) hereof. 

        (p)   "Expiration Date" and "Final Expiration Date" shall have the meanings set
forth in Section 7(a) hereof. 

        (q)   "Fair Market Value" of any securities or other property shall be as determined in accordance with Section 11(d)
hereof. 

        (r)   "Grandfathered Percentage" shall mean the percentage of the outstanding shares of Common Stock of the Company that a
Grandfathered Person, together with all Affiliates and Associates of such Grandfathered Person, Beneficially Owns as of the Grandfathered Time, plus an additional 1/2%; provided,
however, that, in the event any Grandfathered Person shall sell, transfer, or otherwise dispose of any outstanding shares of Common Stock of the Company after the Grandfathered Time, the Grandfathered
Percentage shall, subsequent to such sale, transfer or disposition, mean, with respect to such Grandfathered Person, the lesser of (i) the Grandfathered Percentage as in effect immediately
prior to such sale, transfer or disposition or (ii) the percentage of outstanding shares of Common Stock of the Company that such Grandfathered Person Beneficially Owns immediately following
such sale, transfer or disposition, plus an additional 1/2%. 

        (s)   "Grandfathered Person" shall mean any Person who or which, together with all Affiliates and Associates of such Person,
is, as of the Grandfathered Time, the Beneficial Owner of 15% or more of the shares of Common Stock of the Company then outstanding. Notwithstanding anything to the contrary provided in this
Agreement, any Grandfathered Person who after the Grandfathered Time becomes the Beneficial Owner of less than 15% of the shares of Common Stock of the Company then outstanding shall cease to be a
Grandfathered Person and shall be subject to all of the provisions of this Agreement in the same manner as any Person who is not and was not a Grandfathered Person. 

        (t)    "Grandfathered Time" shall mean 11:00 a.m., New York City time, on September 30, 2003. 

        (u)   "Group" shall have the meaning set forth in clause (b) of the definition of "Person." 

        (v)   "Person" shall mean (a) an individual, a corporation, a partnership, a limited liability company, an association,
a joint stock company, a trust, a business trust, a government or political subdivision, any unincorporated organization, or any other association or entity including any successor (by merger or
otherwise) thereof or thereto, and (b) a "group" as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended. 

        (w)  "Preferred Stock" shall mean any series or class of preferred stock of the Company as any other share of capital stock of
the Company into which such shares shall be reclassified or changed. 

        (x)   "Principal Party" shall have the meaning set forth in Section 13(b) hereof. 

        (y)   "Redemption Price" shall have the meaning set forth in Section 23 hereof. 

        (z)   "Redemption Date" shall have the meaning set forth in Section 7(a) hereof. 

        (aa) "Registered Common Stock" shall have the meaning set forth in Section 13(b) hereof. 

        (bb) "Right Certificate" shall have the meaning set forth in Section 3(a) hereof. 

4

 

        (cc) "Section 11(a)(ii) Event" shall have the meaning set forth in Section 11(a)(ii) hereof. 

        (dd) "Section 11(a)(ii) Trigger Date" shall have the meaning set forth in
Section 11(a)(iii) hereof. 

        (ee) "Section 13 Event" shall mean any event described in clauses (x), (y) or (z) of
Section 13(a) hereof. 

        (ff)  "Section 24(a)(i) Exchange Ratio" shall have the meaning set forth in
Section 24(a)(i) hereof. 

        (gg) "Section 24(a)(ii) Exchange Ratio" shall have the meaning set forth in
Section 24(a)(ii) hereof. 

        (hh) "Spread" shall have the meaning set forth in Section 11(a)(iii) hereof. 

        (ii)   "Stock Acquisition Date" shall mean the date of the first public announcement (which for purposes of this definition
shall include, without limitation, the issuance of a press release or the filing of a publicly-available report or other document with the Securities and Exchange Commission or any other governmental
agency) by the Company, acting pursuant to a resolution adopted by the Board of Directors of the Company, or by an Acquiring Person, subject in each case to the last paragraph of Section 1(a),
that an Acquiring Person has become such. 

        (jj)   "Subsidiary" shall mean, with reference to any Person, any corporation or other entity of which securities or other
ownership interests having ordinary voting power sufficient, in the absence of contingencies, to elect a majority of the board of directors or other persons performing similar functions of such
corporation or other entity are at the time directly or indirectly Beneficially Owned or otherwise controlled by such Person either alone or together with one or more Affiliates of such Person. 

        (kk) "Substitution Period" shall have the meaning set forth in Section 11(a)(iii) hereof. 

        (ll)   "Triggering Event" shall mean any Section 11(a)(ii) Event or any Section 13 Event. 

        Section 2.    Appointment of Rights Agent.    The Company hereby appoints the Rights Agent to act as agent for
the Company and the holders of the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date (as hereinafter defined in Section 3(a)) also be the holders of
the Common Stock of the Company) in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such
Co-Rights Agents as it may deem necessary or desirable. In the event the Company appoints one or more Co-Rights Agents, the respective duties of the Rights Agent and any
Co-Rights Agents shall be as the Company shall determine. The Company shall give ten (10) days' prior written notice to the Rights Agent of the appointment of one or more
Co-Rights Agents and the respective duties of the Rights Agent and any such Co-Rights Agents. The Rights Agent shall have no duty to supervise, and shall in no event be liable
for, the acts or omissions of any such Co-Rights Agent. 

        Section 3.    Issue of Right Certificates.    

        (a)   From
the date hereof until the earlier of (i) the Close of Business on the tenth calendar day after the Stock Acquisition Date or (ii) the Close of
Business on the tenth Business Day (or such later calendar day, if any, as the Board of Directors of the Company may determine in its sole discretion) after the date a tender or exchange offer by any
Person, other than an Exempt Person, is first published or sent or given within the meaning of Rule 14d-4(a) of the Exchange Act, or any successor rule, if, upon consummation
thereof, such Person could become the Beneficial Owner of 15% (or in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such Grandfathered Person) or more of the shares of
Common Stock of the Company then outstanding (including any such date which is after the date of this Agreement 

5

 

and
prior to the issuance of the Rights) (the earliest of such dates being herein referred to as the "Distribution Date"), (x) the Rights will be
evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for the Common Stock of the Company registered in the names of the holders of the Common Stock of the Company
(which certificates for Common Stock of the Company shall be deemed also to be certificates for Rights) and not by separate certificates, and (y) the Rights will be transferable only in
connection with the transfer of the underlying shares of Common Stock of the Company. As soon as practicable after the Distribution Date, the Rights Agent will, at the Company's expense send, by
first-class, insured, postage prepaid mail, to each record holder of the Common Stock of the Company as of the Close of Business on the Distribution Date, at the address of such holder shown on the
records of the Company, one or more certificates, in substantially the form of Exhibit A hereto (the "Right
Certificates"), evidencing one Right for each share of Common Stock of the Company so held, subject to adjustment as provided herein. As of and after the Close of Business on
the Distribution Date, the Rights will be evidenced solely by such Right Certificates. 

        (b)   With
respect to certificates for the Common Stock of the Company issued prior to the Close of Business on the Record Date, the Rights will be evidenced by such
certificates for the Common Stock of the Company on or until the Distribution Date (or the earlier redemption, expiration or termination of the Rights), and the registered holders of the Common Stock
of the Company also shall be the registered holders of the associated Rights. Until the Distribution Date (or the earlier redemption, expiration or termination of the Rights), the transfer of any of
the certificates for the Common Stock of the Company outstanding prior to the date of this Agreement shall also constitute the transfer of the Rights associated with the Common Stock of the Company
represented by such certificate. 

        (c)   Certificates
for the Common Stock of the Company issued after the Record Date, but prior to the earliest of the Distribution Date, Redemption Date, Exchange Date or
Final Expiration Date, shall be deemed also to be certificates for Rights, and shall bear a legend, substantially in the form set forth below: 

This
certificate also evidences and entitles the holder hereof to certain Rights as set forth in a Shareholder Rights Agreement between Medwave, Inc. and Wells Fargo Bank Minnesota, N.A. (or
any successor thereto), as Rights Agent, dated as of September 29, 2003 as amended, restated, renewed, supplemented or extended from time to time (the "Rights
Agreement"), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal offices of Medwave, Inc. and the stock
transfer administration office of the Rights Agent. Under certain circumstances, as set
forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate. Medwave, Inc. may redeem the Rights at a redemption
price of $0.01 per Right, subject to adjustment, under the terms of the Rights Agreement. Medwave, Inc. will mail to the holder of this certificate a copy of the Rights Agreement, as in effect
on the date of mailing, without charge promptly after receipt of a written request therefor. Under certain circumstances, Rights issued to or held by Acquiring Persons or any Affiliates or Associates
thereof (as defined in the Rights Agreement), and any subsequent holder of such Rights, may become null and void. The Rights shall not be exercisable, and shall be void so long as held, by a holder in
any jurisdiction where the requisite qualification, if any, to the issuance to such holder, or the exercise by such holder, of the Rights in such jurisdiction shall not have been obtained or be
obtainable. 

        With
respect to such certificates containing the foregoing legend, the Rights associated with the Common Stock of the Company represented by such certificates shall be evidenced by such
certificates 

6

 

alone
until the earliest of the Distribution Date, Redemption Date, Exchange Date or Final Expiration Date, and the transfer of any of such certificates shall also constitute the transfer of the
Rights associated with the Common Stock of the Company represented by such certificates. In the event that the Company purchases or acquires any shares of Common Stock of the Company after the Record
Date but prior to the Distribution Date, any Rights associated with such Common Stock of the Company shall be deemed canceled and retired so that the Company shall not be entitled to exercise any
Rights associated with the shares of Common Stock of the Company which are no longer outstanding. The failure to print the foregoing legend on any such certificate representing Common Stock of the
Company or any defect therein shall not affect in any manner whatsoever the application or interpretation of the provisions of Section 7(e) hereof. 

        Section 4.    Form of Right Certificates.    

        (a)   The
Right Certificates (and the forms of election to purchase shares and of assignment and certificate to be printed on the reverse thereof) shall each be substantially
in the form of Exhibit A hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed
thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law, rule or regulation or with any
rule or regulation of any stock exchange on which the Rights may from time to time be listed, or to conform to customary usage. The Right Certificates shall be in a machine printable format and in a
form reasonably satisfactory to the Rights Agent. Subject to the provisions of Section 11 and Section 22 hereof, the Right Certificates, whenever distributed, shall be dated as of the
Record Date, shall show the date of countersignature, and on their face shall entitle the holders thereof to purchase such number of shares of Common Stock of the Company as shall be set forth therein
at the price set forth therein (the "Exercise Price"), but the number of such shares and the Exercise Price shall be subject to adjustment as provided
herein. 

        (b)   Any
Right Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents Rights Beneficially Owned by (i) an Acquiring Person or
any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any Associate or Affiliate of an Acquiring Person) who becomes a transferee after the
Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person
becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or
to any Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding (whether or not in writing) regarding the transferred Rights, the shares of Common Stock of the
Company associated with such Rights or the Company or (B) a transfer which the Board of Directors of the Company has determined is part of a plan, arrangement or understanding which has as a
primary purpose or effect the avoidance of Section 7(e) hereof, and any Right Certificate issued pursuant to Section 6, Section 11 or Section 22 upon transfer, exchange,
replacement or adjustment of any other Right Certificate referred to in this sentence, shall have deleted therefrom the second sentence of the existing legend on such Right Certificate and in
substitution therefor shall contain the following legend: 

        The
Rights represented by this Right Certificate are or were Beneficially Owned by a Person who was or became an Acquiring Person or an Affiliate or an Associate of an Acquiring Person
(as such terms are defined in the Rights Agreement). This Right Certificate and the Rights represented hereby may become null and void under certain circumstances as specified in Section 7(e)
of the Rights Agreement. 

        The
Company shall give notice to the Rights Agent promptly after it becomes aware of the existence and identity of any Acquiring Person or any Associate or Affiliate thereof. The Company 

7

 

shall
instruct the Rights Agent in writing of the Rights which should be so legended. The failure to print the foregoing legend on any such Right Certificate or any defect therein shall not affect in
any manner whatsoever the application or interpretation of the provisions of Section 7(e) hereof. 

        Section 5.    Countersignature and Registration.    

        (a)   The
Right Certificates shall be executed on behalf of the Company by its Chairman of the Board of Directors, or its President or any Vice President and by its Treasurer
or any Assistant Treasurer, or by its Secretary or any Assistant Secretary, either manually or by facsimile signature, and shall have affixed thereto the Company's seal or a facsimile thereof which
shall be attested to by the Secretary or any Assistant Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be manually countersigned by an authorized
signatory of the Rights Agent and shall not be valid for any purpose unless so countersigned, and such countersignature upon any Right Certificate shall be conclusive evidence, and the only evidence,
that such Right Certificate has been duly countersigned as required hereunder. In case any officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of
the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be countersigned
by an authorized signatory of the Rights Agent, and issued and delivered by the Company with the same force and effect as though the person who signed such Right Certificates had not ceased to be such
officer of the Company; and any Right Certificates may be signed on behalf of the Company by any person who, at the actual date of the execution of such Right Certificate, shall be a proper officer of
the Company to sign such Right Certificate, although at the date of the execution of this Rights Agreement any such person was not such an officer. 

        (b)   Following
the Distribution Date, the Rights Agent will keep or cause to be kept, at one of its offices designated as the appropriate place for surrender of Right
Certificates upon exercise or transfer, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the
Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates and the date of each of the Right Certificates. 

        Section 6.    Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates.    

        (a)   Subject
to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time after the Close of Business on the Distribution Date, and
at or prior to the Close of Business on the Expiration Date, any Right Certificate or Certificates may be transferred, split up, combined or exchanged for another Right Certificate or Certificates,
entitling the registered holder to purchase a like number of shares of Common Stock of the Company (or following a Triggering Event, Common Stock of the Company, cash, property, debt securities,
Preferred Stock or any combination thereof, including any such securities, cash or property following a Section 13 event) as the Right Certificate or Certificates surrendered then entitled such
holder to purchase and at the same Exercise Price. Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate shall make such request in writing delivered to the
Rights Agent, and shall surrender the Right Certificate or Certificates to be transferred, split up, combined or exchanged, with the form of assignment and certificate duly executed, at the office or
offices of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered
Right Certificate until the registered holder shall have completed and signed the certificate contained in the form of assignment on the reverse side of such Right Certificate and shall have provided
such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. Thereupon the Rights Agent
shall, subject to Section 4(b), Section 7(e) and Section 14 hereof, countersign and deliver to 

8

 

the
Person entitled thereto a Right Certificate or Certificates, as the case may be, as so requested. The Company may require payment by the registered holder of a Right Certificate, of a sum
sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates. 

        (b)   Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and,
in case of loss, theft or destruction,
of indemnity or security satisfactory to them, and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and
cancellation of the Right Certificate, if mutilated, the Company will execute and deliver a new Right Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered
owner in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 

        Section 7.    Exercise of Rights; Exercise Price; Expiration Date of Rights.    

        (a)   Subject
to Section 7(e) hereof, the registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in
whole or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election to purchase and the certificate on the reverse side thereof duly executed,
to the Rights Agent at the office or offices of the Rights Agent designated for such purpose, together with payment of the aggregate Exercise Price for the total number of shares of Common Stock of
the Company (or other securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercised, at or prior to the earlier of (i) the Close of Business on
the tenth anniversary of the Record Date (the "Final Expiration Date"), (ii) the time at which the Rights are redeemed as provided in
Section 23 hereof (the "Redemption Date") or (iii) the time at which such Rights are exchanged as provided in Section 24 hereof
(the "Exchange Date") (the earliest of (i), (ii) or (iii) being herein referred to as the "Expiration
Date"). Except as set forth in Section 7(e) hereof and notwithstanding any other provision of this Agreement, any Person who prior to the Distribution Date becomes a
record holder of shares of Common Stock of the Company may exercise all of the rights of a registered holder of a Right Certificate with respect to the Rights associated with such shares of Common
Stock of the Company in accordance with the provisions of this Agreement, as of the date such Person becomes a record holder of shares of Common Stock of the Company. 

        (b)   The
Exercise Price for each share of Common Stock of the Company pursuant to the exercise of a Right shall initially be Fifty United States Dollars (U.S. $50.00), shall
be subject to adjustment from time to time as provided in Section 11 and Section 13 hereof and shall be payable in lawful money of the United States of America in accordance with
Section 7(c) below. 

        (c)   Upon
receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase and the certificate on the reverse side thereof duly executed,
accompanied by payment of the Exercise Price for the shares to be purchased and an amount equal to any applicable transfer tax (as determined by the Rights Agent) by certified check or bank draft
payable to the order of the Company or by money order, the Rights Agent shall, subject to Section 20(k) and Section 14(b) hereof, thereupon promptly (i) requisition from any
transfer agent for the Common Stock of the Company (the "Depositary Agent") (or make available, if the Rights Agent is the transfer agent for the Common
Stock of the Company) depositary receipts or certificates for the number of shares of Common Stock of the Company to be purchased and the Company hereby irrevocably authorizes the Depositary Agent to
comply with all such requests, (ii) when appropriate, requisition from the Company the amount of cash, if any, to be paid in lieu of issuance of fractional shares in accordance with
Section 14 hereof, (iii) promptly after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Right
Certificate, registered in such name or names as may be designated 

9

 

by
such holder and (iv) when appropriate, after receipt of such certificate or depositary receipts promptly deliver such cash to or upon the order of the registered holder of such Right
Certificate. In the event that the Company is obligated to issue other securities (including Common Stock) of the Company, pay cash or distribute other property pursuant to Section 11(a)
hereof, the Company will make all arrangements necessary so that such other securities, cash or other property are available for distribution by the Rights Agent, if and when appropriate. The payment
of the Exercise Price may be made by certified or bank check payable to the order of the Company, or by money order or wire transfer of immediately available funds to the account of the Company
(provided that notice of such wire transfer shall be given by the holder of the related Right to the Rights Agent). 

        (d)   In
case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to
the Rights remaining unexercised shall be issued by the Rights Agent and delivered to the registered holder of such Right Certificate or to his duly authorized assigns, subject to the provisions of
Section 14 hereof. 

        (e)   Notwithstanding
anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a)(ii) Event or Section 13 Event,
any Rights Beneficially Owned by (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any Associate or Affiliate
of an Acquiring Person) who becomes a transferee after the Acquiring Person becomes such or (iii) a transferee of an Acquiring Person (or of any Associate or Affiliate of an Acquiring Person)
who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the
Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding regarding the
transferred Rights, the shares of Common Stock of the Company associated with such Rights or the Company, or (B) a transfer which the Board of Directors of the Company has determined is part of
a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(e), shall be null and void without any further action and no holder of such Rights
shall have any rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to ensure that the provisions of
this Section 7(e) and Section 4(b) hereof are complied with, but shall have
no liability to any holder of Right Certificates or other Person as a result of its failure to make any determinations with respect to an Acquiring Person or any Affiliates or Associates of an
Acquiring Person or any transferee of any of them hereunder. 

        (f)    Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a
registered holder of Rights upon the occurrence of any purported exercise as set forth in this Section 7 unless such registered holder shall have (i) completed and signed the certificate
contained in the form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such exercise, and (ii) provided such additional evidence of the identity of
the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. 

        Section 8.    Cancellation and Destruction of Right Certificates.    All Right Certificates surrendered for the
purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation or in canceled form, or,
if surrendered to the Rights Agent, shall be canceled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The
Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel 

10

 

and
retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all canceled Right Certificates to the Company. 

        Section 9.    Reservation and Availability of Common Stock.    

        (a)   The
Company covenants and agrees that on and after the Distribution Date, it will use reasonable efforts to cause to be reserved and kept available, out of its
authorized and unissued shares of Common Stock, the number of shares of Common Stock that, except as provided in Section 11(a)(iii) hereof, would then be sufficient to permit the
exercise in full of all outstanding Rights; provided, however, that the reservation of such shares shall be subject and subordinate to any other
reservation of shares of Common Stock of the Company made by the Company at any time for any lawful purpose; and further provided, however, that in no
event shall such failure to so reserve shares affect the rights of any holder of Rights hereunder. 

        (b)   The
Company shall use its best efforts to cause, from and after such time as the Rights become exercisable, all shares of Common Stock of the Company issued or reserved
for issuance to be listed, upon official notice of issuance, upon the principal national securities exchange, if any, upon which the Common Stock of the Company is listed or, if the principal market
for the Common Stock of the Company is not on any national securities exchange, to be eligible for quotation on the National
Association of Securities Dealers Automated Quotation System ("NASDAQ") or any successor thereto or other comparable quotation system. 

        (c)   The
Company shall use its best efforts to (i) file, as soon as practicable following the earliest date after the occurrence of a
Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been determined in accordance with
Section 11(a)(iii) hereof, or as soon as required by law following the Distribution Date, as the case may be, a registration statement under the Securities Act of 1933, as amended (the
"Securities Act"), with respect to the securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration
statement to become effective as soon as practicable after such filing and (iii) cause such registration statement to remain effective (with a prospectus that at all times meets the
requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities or (B) the Expiration Date. The Company will
also take such action as may be appropriate under, and which will ensure compliance with, the securities or "blue sky" laws of the various states in connection with the exercisability of the Rights.
The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date determined in accordance with the provisions of the first sentence of this
Section 9(c), the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective. Upon such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect, in each case with
prompt written notice to the Rights Agent. Notwithstanding any such provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction unless the requisite
qualification in such jurisdiction shall have been obtained. 

        (d)   The
Company covenants and agrees that it will take all such action as may be necessary to ensure that all shares of Common Stock of the Company delivered upon the
exercise of the Rights shall, at the time of delivery of the certificates or depositary receipts for such shares (subject to payment of the Exercise Price), be duly and validly authorized and issued
and fully paid and nonassessable. 

        (e)   The
Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect
of the issuance or delivery of the Right Certificates or of any certificates for shares of Common Stock of the Company and/or other consideration upon the exercise of Rights. The Company shall not, 

11

 

however,
be required to pay any transfer tax which may be payable in respect of any transfer or delivery of Right Certificates or the issuance or delivery of certificates for any shares of Common
Stock of the Company and/or other consideration to a person other than, or in respect of the issuance or delivery of securities in a name other than that of, the registered holder of the Right
Certificates evidencing Rights surrendered for exercise or to issue or deliver any certificates for securities in a name other than that of the registered holder upon the exercise of any Rights until
such tax shall have been paid (any such tax being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Company's satisfaction that no such
tax is due. 

        Section 10.    Common Stock Record Date.    Each person in whose name any certificate for any shares of Common
Stock of the Company (or other securities) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of such shares of Common Stock of the Company (or
such other securities, as the case may be) represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and
payment of the Exercise Price (and any applicable transfer taxes) was made; provided, however, that if the date of such surrender and payment is a date
upon which the transfer books for the Common Stock of the Company (or, if applicable, such other securities) are closed, such person shall be deemed to have become the record holder of such shares on,
and such certificate shall be dated, the next succeeding Business Day on which such transfer books are open; and further provided, however, that if
delivery of shares of Common Stock of the Company (or, if applicable, other securities) is delayed pursuant to Section 9(c), such Person shall be deemed to have become the record holder of such
shares of Common Stock of the Company (or, if applicable, such other securities) only when such shares first become deliverable. Prior to the exercise of the Right evidenced thereby, the holder of a
Right Certificate shall not be entitled to any rights of a shareholder of the Company with respect to shares for which the Rights shall be exercisable, including, without limitation, the right to
vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 

        Section 11.    Adjustment of Exercise Price, Number and Kind of Shares or Number of Rights.    The Exercise
Price, the number and kind of shares covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 

        (a)   (i)
In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Common Stock of the Company payable in shares of
Common Stock of the Company, (B) subdivide the outstanding Common Stock of the Company, (C) combine the outstanding Common Stock of the Company into a smaller number of shares or
(D) issue, change or alter any shares of its capital stock in a reclassification or recapitalization (including any such reclassification or recapitalization in connection with a consolidation
or merger in which the Company is the continuing or surviving Person), except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Exercise Price in effect at the
time of the record date for such dividend or the effective time of such subdivision, combination, reclassification or recapitalization, and the number and kind of shares of capital stock issuable at
such time, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if
such Right had been exercised immediately prior to such time at the Exercise Price then in effect and at a time when the transfer books for such capital stock were open, such holder would have owned
upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination, reclassification or recapitalization; provided,
however, that in no event shall the consideration to be paid upon the exercise of a Right be less than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of a Right. If an event occurs which would require an adjustment under both Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided
for 

12

 

in
this Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof. 

         (ii)  Subject
to the provisions of Section 24 hereof, in the event any Person, alone or together with its Affiliates and Associates, shall become an Acquiring Person,
then, promptly following any such occurrence (a "Section 11(a)(ii) Event"), proper provision shall be made so that each holder of a Right, except as provided in Section 7(e)
hereof, shall thereafter have a right to receive, upon exercise thereof at the then current Exercise Price in accordance with the terms of this Agreement, such number of shares of Common Stock of the
Company as shall equal the result obtained by (x) multiplying the then current Exercise Price by the then number of shares of Common Stock of the Company for which a Right was exercisable
immediately prior to the first occurrence of a Section 11(a)(ii) Event, whether or not such Right was then exercisable, and dividing that product by (y) 50% of the Fair Market
Value per share of Common Stock of the Company (determined pursuant to Section 11(d)) on the date of the occurrence of a Section 11(a)(ii) Event (such number of shares being
referred to as the "Adjustment Shares"). 

        (iii)  In
lieu of issuing any shares of Common Stock of the Company in accordance with Section 11(a)(ii) hereof, the Company, acting by or pursuant to a
resolution of the Board of Directors of the Company, may, and in the event that the number of shares of Common Stock of the Company which are authorized by the Company's Certificate of Incorporation
but not outstanding or reserved for issuance for purposes other than upon exercise of the Rights is not sufficient to permit the exercise in full of the Rights in accordance with the foregoing
subparagraph (ii) of this Section 11(a), the Company, acting by or pursuant to a resolution of the Board of Directors of the Company, shall take such action as may be necessary to
authorize additional shares of Common Stock of the Company for issuance upon exercise of the Rights. In the event that the Company shall, after good faith effort, be unable to take such actions as may
be necessary to authorize such additional shares of Common Stock of the Company, the Company, acting by or pursuant to a resolution of the Board of Directors of the Company, shall:
(A) determine the excess of (X) the Fair Market Value of the Adjustment Shares issuable upon the exercise of a Right (the "Current Value")
over (Y) the Exercise Price attributable to each Right (such excess being referred to as the "Spread") and (B) with respect to all or a
portion of each Right (subject to Section 7(e) hereof), make adequate provision to substitute for the Adjustment Shares, upon payment of the applicable Exercise Price, (1) Common Stock
of the Company or other equity securities, if any, of the Company (including without limitation shares, or units of shares, of Preferred Stock that the Board of Directors of the Company has determined
to have the same value as shares of Common Stock of the Company (such shares of equity securities being referred to herein as "Common Stock
Equivalents")), to the extent permitted by the Company's Certificate of Incorporation, (2) cash, (3) a reduction in the Exercise Price, (4) debt securities
of the Company, (5) other assets or securities of the Company or (6) any combination of the foregoing having an aggregate value equal to the Current Value, where such aggregate value has
been determined by the Board of Directors of the Company after receiving advice of a nationally recognized investment banking firm selected by the Board of Directors of the Company;  provided, however,
that if the Company shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty
(30) days following the later of (x) the first occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company's right of redemption pursuant to
Section 23(a) expires (the later of (x) and (y) being referred to herein as the "Section 11(a)(ii) Trigger Date"),
then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the Exercise Price, shares of Common Stock of the Company (to the extent
available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the Board of 

13

 

Directors
of the Company shall determine in good faith that it is likely that sufficient additional shares of Common Stock of the Company could be authorized for issuance upon exercise in full of the
Rights, the 30-day period set forth above may be extended to the extent necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in
order that the Company may seek shareholder approval for the authorization of such additional shares (such period, as it may be extended, being referred to herein as the
"Substitution Period"). To the extent that the Company determines that some action need be taken pursuant to the first and/or second sentences of this
Section 11(a)(iii), the Company (x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights and (y) may suspend the
exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares and/or to decide the appropriate form of distribution to be made
pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has
been temporarily suspended and a public announcement at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the value of the Common Stock of the Company
shall be the Fair Market Value (as determined pursuant to Section 11(d) hereof) per share of the Common Stock of the Company on the Section 11(a)(ii) Trigger Date and the value of
any Common Stock Equivalent shall be deemed to have
the same value as the Common Stock of the Company on such date. 

        (b)   If
the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Common Stock of the Company entitling them (for a period
expiring within forty-five (45) calendar days after such record date) to subscribe for or purchase shares of Common Stock of the Company or Common Stock Equivalents, or securities
convertible into shares of Common Stock of the Company or Common Stock Equivalents, at a price per share of Common Stock of the Company or per share of Common Stock Equivalents (or having a conversion
price per share, if a security convertible into Common Stock of the Company or Common Stock Equivalents) less than the Fair Market Value (as determined pursuant to Section 11(d) hereof) per
share of Common Stock of the Company Stock on such record date, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the number of shares of Common Stock of the Company outstanding on such record date, plus the number of shares of Common Stock
of the Company that the aggregate offering price of the total number of shares of Common Stock of the Company and/or Common Stock Equivalents to be offered (and the aggregate initial conversion price
of the convertible securities so to be offered) would purchase at such Fair Market Value, and the denominator of which shall be the number of shares of Common Stock of the Company outstanding on such
record date, plus the number of additional shares of Common Stock of the Company and/or Common Stock Equivalents to be offered for subscription or purchase (or into which the convertible securities so
to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of a Right be less
than the aggregate par value of the shares of stock of the Company issuable upon exercise of a Right. In case such subscription price may be paid in a consideration part or all of which shall be in a
form other than cash, the value of such consideration shall be the Fair Market Value thereof determined in accordance with Section 11(d) hereof. Shares of Common Stock of the Company owned by
or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustments shall be made successively whenever such a record date is fixed; and in
the event that such rights or warrants are not so issued, the Exercise Price shall be adjusted to be the Exercise Price which would then be in effect if such record date had not been fixed. 

14

 

        (c)   If
the Company shall fix a record date for the making of a distribution to all holders of Common Stock of the Company (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing or surviving corporation), of evidences of indebtedness, cash (other than a regular periodic cash dividend out of the earnings or
retained earnings of the Company), assets (other than a dividend payable in Common Stock of the Company, but including any dividend payable in stock other than Common Stock of the Company) or
convertible securities, subscription rights or warrants (excluding those referred to in Section 11(b)), the Exercise Price to be in effect after such record date shall be determined by
multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the Fair Market Value (as determined pursuant to Section 11(d)
hereof) per share of Common Stock of the Company on such record date, less the Fair Market Value (as determined pursuant to Section 11(d) hereof) of the portion of the cash, assets or evidences
of indebtedness so to be distributed or of such convertible securities, subscription rights or warrants distributable in respect of a share of Common Stock of the Company, and the denominator of which
shall be the Fair Market Value (as determined pursuant to
Section 11(d) hereof) per share of Common Stock of the Company on such record date; provided, however, that in no event shall the consideration
to be paid upon the exercise of a Right be less than the aggregate par value of the shares of stock of the Company issuable upon exercise of a Right. Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution is not so made, the Exercise Price shall again be adjusted to be the Exercise Price which would be in effect if such
record date had not been fixed. 

        (d)   For
the purpose of this Agreement, the "Fair Market Value" of any share of Common Stock or any other stock or any Right or other security or any other property shall be
determined as provided in this Section 11(d). 

          (i)  In
the case of a publicly-traded stock or other security, the Fair Market Value on any date shall be deemed to be the average of the daily closing prices per share of
such stock or per unit of such other security for the 30 consecutive Trading Days (as such term is hereinafter defined) immediately prior to such date; provided,
however, that in the event that the Fair Market Value per share of any share of stock is determined during a period following the announcement by the issuer of such stock of
(x) a dividend or distribution on such stock payable in shares of such stock or securities convertible into shares of such stock or (y) any subdivision, combination or reclassification
of such stock, and prior to the expiration of the 30 Trading Day period after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination
or reclassification, then, and in each such case, the Fair Market Value shall be properly adjusted to take into account ex-dividend trading. The closing price for each day shall be the
last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the securities are not listed or admitted to trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which such security is listed or
admitted to trading; or, if not listed or admitted to trading on any national securities exchange, the last quoted price (or, if not so quoted, the average of the last quoted high bid and low asked
prices) in the over-the-counter market, as reported by NASDAQ or such other system then in use; or, if on any such date no bids for such security are quoted by any such
organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such security selected by the Board of Directors of the Company. If on any
such date no market maker is making a market in such security, the Fair Market Value of such security on such date shall be determined reasonably and with utmost good faith to the holders of the 

15

 

Rights
by the Board of Directors of the Company, provided, however, that if at the time of such determination there is an Acquiring Person, the Fair
Market Value of such security on such date shall be determined by a nationally recognized investment banking firm selected by the Board of Directors of the Company, which determination shall be
described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. The term "Trading Day" shall mean a day on which the principal national
securities exchange on which such security is listed or admitted to trading is open for the transaction of business or, if such security is not listed or admitted to trading on any national securities
exchange, a Business Day. 

         (ii)  If
a security is not publicly held or not so listed or traded, "Fair Market Value" shall mean the fair value per share of stock or per other unit of such security,
determined reasonably and in good faith to the holders of the Rights by the Board of Directors of the Company; provided, however, that if at the time of
such determination there is an Acquiring Person, the Fair Market Value of such security on such date shall be determined by a nationally recognized investment banking firm selected by the Board of
Directors of the Company, which determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. 

        (iii)  In
the case of property other than securities, the Fair Market Value thereof shall be determined reasonably and in good faith to the holders of Rights by the Board of
Directors of the Company; provided, however, that if at the time of such determination there is an Acquiring Person, the Fair Market Value of such
property on such date shall be determined by a nationally recognized investment banking firm selected by the Board of Directors of the Company, which determination shall be described in a statement
filed with the Rights Agent and shall be binding upon the Rights Agent and the holders of the Rights. 

        (e)   Anything
herein to the contrary notwithstanding, no adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at
least 1% in the Exercise Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall
be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one hundred-thousandth of a
share of Common Stock or to such other figure as the Board of Directors of the Company may deem appropriate. Notwithstanding the first sentence of this Section 11(e), any adjustment required by
this Section 11 shall be made no later than the earlier of (i) three (3) years from the date of the transaction which mandates such adjustment or (ii) the Expiration Date. 

        (f)    If
as a result of any provision of Section 11(a) or Section 13(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any
shares of capital stock of the Company other than Common Stock of the Company, thereafter the number of such other shares so receivable upon exercise of any Right shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Common Stock of the Company contained in Section 11(a), (b), (c), (d), (e),
(g) through (m), inclusive, and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Common Stock of the Company shall apply on like terms to any such other shares. 

        (g)   All
Rights originally issued by the Company subsequent to any adjustment made to the Exercise Price hereunder shall evidence the right to purchase, at the adjusted
Exercise Price, the number of shares of Common Stock of the Company (or other securities or amount of cash or combination thereof) purchasable from time to time hereunder upon exercise of the Rights,
all subject to further adjustment as provided herein. 

16

 

        (h)   Unless
the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Exercise Price as a result of the calculations made
in Section 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Exercise Price, that number
of shares of Common Stock of the Company (calculated to the nearest one hundred-thousandth of a share) as the Board of Directors of the Company determines is appropriate to preserve the economic value
of the Rights, including, by way of example, that number obtained by (i) multiplying (x) the number of shares of Common Stock of the Company for which a Right may be exercisable
immediately prior to this adjustment by (y) the Exercise Price in effect immediately prior to such adjustment of the Exercise Price and (ii) dividing the product so obtained by the
Exercise Price in effect immediately after such adjustment of the Exercise Price. 

        (i)    The
Company may elect on or after the date of any adjustment of the Exercise Price to adjust the number of Rights, in substitution for any adjustment in the number of
shares of Common Stock of the Company purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for the number of
shares of Common Stock of the Company for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become
that number of Rights (calculated to the nearest one ten-thousandth) obtained by dividing the Exercise Price in effect immediately prior to adjustment of the Exercise Price by the Exercise
Price in effect immediately after adjustment of the Exercise Price. The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the
adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Exercise Price is adjusted or any day thereafter, but, if the Right
Certificates have been issued, shall be at least ten (10) days later than the date of the public announcement. If Right Certificates have been issued, upon each adjustment of the number of
Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates
evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be
distributed to such holders of record in substitution and replacement for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the
Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right Certificates so to be distributed shall be issued, executed and
countersigned in the manner provided for herein (and may bear, at the option of the Company, the adjusted Exercise Price) and shall be registered in the names of the holders of record of Right
Certificates on the record date specified in the public announcement. 

        (j)    Irrespective
of any adjustment or change in the Exercise Price or the number of shares of Common Stock of the Company issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the Exercise Price per share and the number of shares which were expressed in the initial Right Certificates issued hereunder
without prejudice to any adjustment or change. 

        (k)   Before
taking any action that would cause an adjustment reducing the Exercise Price below the then stated value, if any, of the number of shares of Common Stock of the
Company issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock of the Company at such adjusted Exercise Price. 

        (l)    In
any case in which this Section 11 shall require that an adjustment in the Exercise Price be made effective as of a record date for a specified event, the
Company may elect to defer until 

17

 

the
occurrence of such event the issuing to the holder of any Right exercised after such record date the number of shares of Common Stock of the Company or other capital stock or securities of the
Company, if any, issuable upon such exercise over and above the number of shares of Common Stock of the Company and other capital stock or securities of the Company, if any, issuable upon such
exercise on the basis of the Exercise Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due
bill or other appropriate instrument evidencing such holder's right to receive such additional shares upon the occurrence of the event requiring such adjustment. 

        (m)  Anything
in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Exercise Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent that in its good faith judgment the Board of Directors of the Company shall determine to be advisable in order that any
consolidation or subdivision of the Common Stock of the Company, issuance wholly for cash of any shares of Common Stock of the Company at less than the Fair Market Value, issuance wholly for cash of
shares of Common Stock of the Company or securities which by their terms are convertible into or exchangeable for shares of Common Stock of the Company, stock dividends or issuance of rights, options
or warrants referred to hereinabove in this Section 11, hereafter made by the Company to holders of Common Stock of the Company, shall not be taxable to such shareholders. 

        (n)   The
Company covenants and agrees that it shall not, at any time after the Distribution Date and so long as the Rights have not been redeemed pursuant to
Section 23 hereof or exchanged pursuant to Section 24 hereof, (i) consolidate with, (ii) merge with or into, or (iii) sell or transfer (or permit any Subsidiary to
sell or transfer), in one transaction or a series of related transactions, assets or earning power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries taken as a
whole, to any other Person or Persons if (x) at the time of or immediately after such consolidation, merger or sale there are any rights, warrants or other instruments outstanding or agreements
or arrangements in effect which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights, or (y) prior to, simultaneously with or immediately after
such consolidation, merger or sale the shareholders of a Person who constitutes, or would constitute, the "Principal Party" for the purposes of Section 13(a) hereof shall have received a
distribution of Rights previously owned by such Person or any of its Affiliates and Associates; provided, however, that, subject to the following
sentence, this Section 11(n) shall not affect the ability of any Subsidiary of the Company to consolidate with, or merge with or into, or sell or transfer assets or earning power to, any other
Subsidiary of the Company. The Company further covenants and agrees that after the Distribution Date it will not, except as permitted by Section 23 or Section 27 hereof, take (or permit
any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such
action will substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights. 

        (o)   Notwithstanding
anything to the contrary set forth herein, in the event that the Company declares a dividend per share (whether cash, securities, rights or other
distribution) in respect of the Common Stock of the Company for holders as of a record date and if Rights become exercisable (automatically or otherwise) and are exercised after the date of such
declaration but prior to such record date, the aggregate amount (or number of securities or other rights) of such dividend shall remain the same and the per share dividend shall be reduced to reflect
the increased number of shares of Common Stock of the Company outstanding following such exercise of Rights. 

18

  

        (p)   In
the event that the Rights become exercisable following a Section 11(a)(ii) Event, the Company, by action of the Board of Directors, may permit the
Rights, subject to Section 7(e), to be exercised for 50% of the shares of Common Stock of the Company (or cash, other securities or property) that would otherwise be purchasable under
Section 11(a), in consideration of the surrender to the Company of the Rights so exercised and without other payment of the Exercise Price. Rights exercised under this Section 11(p)
shall be deemed to have been exercised in full and shall be canceled. 

        (q)   The
exercise (or, pursuant to Section 24, exchange) of Rights under Section 11(a)(ii) shall only result in the loss of rights under
Section 11(a)(ii) to the extent so exercised and shall not otherwise affect the rights of holders of Right Certificates under this Rights Agreement, including rights to purchase
securities of the Principal Party following a Section 13 Event which has occurred or may thereafter occur, as set forth in Section 13 hereof. Upon exercise of a Right Certificate under
Section 11(a)(ii), the Rights Agent shall return such Right Certificate duly marked to indicate that such exercise has occurred. 

        Section 12.    Certificate of Adjusted Exercise Price or Number of Shares.    Whenever an adjustment is made as
provided in Section 11 or Section 13 hereof, the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for
such adjustment, (b) promptly file with the Rights Agent and with each transfer agent for the Common Stock of the Company a copy of such certificate and (c) mail a brief summary thereof
to each holder of a Right Certificate (or, if prior to the Distribution Date, to each holder of a certificate representing shares of Common Stock of the Company) in accordance with Section 26
hereof. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment contained therein and shall not be deemed to have knowledge of any such adjustment unless and
until it shall have received such certificate. 

        Section 13.    Consolidation, Merger or Sale or Transfer of Assets or Earning Power.    

        (a)   In
the event that, following the Stock Acquisition Date, directly or indirectly, (x) the Company shall consolidate with, or merge with and into, any other Person
(other than a Subsidiary of the Company in a transaction which is not prohibited by Section 11(n) hereof), and the Company shall not be the continuing or surviving corporation of such
consolidation or merger, (y) any Person (other than a Subsidiary of the Company in a transaction which is not prohibited by the proviso at the end of the first sentence of Section 11(n)
hereof) shall consolidate with the Company, or merge with and into the Company and the Company shall be the continuing or surviving corporation of such merger and, in connection with such merger, all
or part of the shares of Common Stock of the Company shall be changed into or exchanged for stock or other securities of any other Person or cash or any other property, or (z) the Company shall
sell, mortgage or otherwise transfer (or one or more of its Subsidiaries shall sell, mortgage or otherwise transfer), in one transaction or a series of related transactions, assets or earning power
aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or any Subsidiary of the Company in
one or more transactions, each of which is not prohibited by the proviso at the end of the first sentence of Section 11(n) hereof), then, and in each such case, proper provision shall be made
so that: (i) each holder of a Right, except as provided in Section 7(e) hereof, shall have the right to receive, upon the exercise thereof at the then current Exercise Price in
accordance with the terms of this Agreement, such number of validly authorized and issued, fully paid and nonassessable shares of freely tradable Common Stock of the Principal Party (as hereinafter
defined in Section 13(b)), free and clear of rights of call or first refusal, liens, encumbrances, transfer restrictions or other adverse claims, as shall be equal to the result obtained by
(1) multiplying the then current Exercise Price by the number of shares of Common Stock of the Company for which a Right is exercisable immediately prior to the first occurrence of a
Section 13 Event (without taking into account any 

19

 

adjustment
previously made pursuant to Section 11(a)(ii) or 11(a)(iii) hereof), and dividing that product by (2) 50% of the Fair Market Value (determined pursuant to
Section 11(d) hereof) per share of the Common Stock of such Principal Party on the date of consummation of such consolidation, merger, sale or transfer; (ii) such Principal Party shall
thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale, mortgage or transfer, all the obligations and duties of the Company pursuant to this Agreement;
(iii) the term "Company" shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall apply to such
Principal Party; and (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of shares of its Common Stock to permit exercise of
all outstanding Rights in accordance with this Section 13(a) and the making of payments in cash and/or other securities in accordance with Section 11(a)(iii) hereof) in connection
with such consummation as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its shares of Common Stock thereafter
deliverable upon the exercise of the Rights. 

        (b)   "Principal
Party" shall mean 

          (i)  in
the case of any transaction described in clause (x) or (y) of the first sentence of Section 13(a), the Person that is the issuer of any
securities into which shares of Common Stock of the Company are converted in such merger or consolidation, or, if there is more than one such issuer, the issuer of Common Stock that has the highest
aggregate Fair Market Value (determined pursuant to Section 11(d)), and if no securities are so issued, the Person that is the other party to the merger or
consolidation, or, if there is more than one such Person, the Person the Common Stock of which has the highest aggregate Fair Market Value (determined pursuant to Section 11(d)); and 

         (ii)  in
the case of any transaction described in clause (z) of the first sentence of Section 13(a), the Person that is the party receiving the greatest portion
of the assets or earning power transferred pursuant to such transaction or transactions, or, if each Person that is a party to such transaction or transactions receives the same portion of the assets
or earning power transferred pursuant to such transaction or transactions or if the Person receiving the largest portion of the assets or earning power cannot be determined, whichever Person the
Common Stock of which has the highest aggregate Fair Market Value (determined pursuant to Section 11(d)); provided, however, that in any such
case described in clauses (i) or (ii) of Section 13(b) hereof, (1) if the Common Stock of such Person is not at such time and has not been continuously over the preceding
12-month period registered under Section 12 of the Exchange Act ("Registered Common Stock") or such Person is not a corporation, and
such Person is a direct or indirect Subsidiary or Affiliate of another Person who has Registered Common Stock outstanding, "Principal Party" shall refer to such other Person; (2) if the Common
Stock of such Person is not Registered Common Stock or such Person is not a corporation, and such Person is a direct or indirect Subsidiary of another Person but is not a direct or indirect Subsidiary
of another Person which has Registered Common Stock outstanding, "Principal Party" shall refer to the ultimate parent entity of such first-mentioned Person; (3) if the Common Stock of such
Person is not Registered Common Stock or such Person is not a corporation, and such Person is directly or indirectly controlled by more than one Person, and one or more of such other Persons has
Registered Common Stock outstanding, "Principal Party" shall refer to whichever of such other Persons is the issuer of the Registered Common Stock having the highest aggregate Fair Market Value
(determined pursuant to Section 11(d)); and (4) if the Common Stock of such Person is not Registered Common Stock or such Person is not a corporation, and such Person is directly or
indirectly controlled by more than one Person, and none of such other Persons has Registered Common Stock outstanding, "Principal Party" shall refer to whichever ultimate parent entity is the 

20

 

corporation
having the greatest shareholders' equity or, if no such ultimate parent entity is a corporation, "Principal Party" shall refer to whichever ultimate parent entity is the entity having the
greatest net assets. 

        (c)   The
Company shall not consummate any such consolidation, merger, sale or transfer unless prior thereto (x) the Principal Party shall have a sufficient number of
authorized shares of its Common Stock, which have not been issued or reserved for issuance, to permit the exercise in full of the Rights in accordance with this Section 13, and (y) the
Company and each Principal Party and each other Person who may become a Principal Party as a result of such consolidation, merger, sale or transfer shall have executed and delivered to the Rights
Agent a supplemental agreement providing for the terms set forth in Section 13(a) and (b) and further providing that, as soon as practicable after the date of any consolidation, merger,
sale or transfer of assets mentioned in Section 13(a), the Principal Party at its own expense will: 

          (i)  prepare
and file a registration statement under the Securities Act with respect to the Rights and the securities purchasable upon exercise of the Rights on an
appropriate form, cause such registration
statement to become effective as soon as practicable after such filing and cause such registration statement to remain effective (with a prospectus that at all times meets the requirements of the
Securities Act) until the Expiration Date; 

         (ii)  qualify
or register the Rights and the securities purchasable upon exercise of the Rights under the blue sky laws of such jurisdictions as may be necessary or
appropriate; 

        (iii)  list
(or continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on a national securities exchange or to meet the eligibility
requirements for quotation on NASDAQ; and 

        (iv)  deliver
to holders of the Rights historical financial statements for the Principal Party and each of its Affiliates which comply in all respects with the requirements
for registration on Form 10 under the Exchange Act. 

        (d)   In
case the Principal Party which is to be a party to a transaction referred to in this Section 13 has a provision in any of its authorized securities or in its
certificate of incorporation or By-laws or other instrument governing its affairs, which provision would have the effect of (i) causing such Principal Party to issue (other than to
holders of Rights pursuant to this Section 13), in connection with, or as a consequence of, the consummation of a transaction referred to in this Section 13, shares of Common Stock of
such Principal Party at less than the then current Fair Market Value (determined pursuant to Section 11(d)) or securities exercisable for, or convertible into, Common Stock of such Principal
Party at less than such Fair Market Value, or (ii) providing for any special payment, tax or similar provisions in connection with the issuance of the Common Stock of such Principal Party
pursuant to the provisions of this Section 13, then, in such event, the Company shall not consummate any such transaction unless prior thereto the Company and such Principal Party shall have
executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question of such Principal Party shall have been canceled, waived or amended, or that the authorized
securities shall be redeemed, so that the applicable provision will have no effect in connection with, or as a consequence of, the consummation of the proposed transaction. 

        The
provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. 

        Section 14.    Fractional Rights and Fractional Shares.    

        (a)   The
Company shall not be required to issue fractions of Rights, except prior to the Distribution Date as provided in Section 11(o) hereof, or to distribute Right
Certificates which 

21

 

evidence
fractional Rights. If the Company elects not to issue such fractional Rights, the Company shall pay, in lieu of such fractional Rights, to the registered holders of the Right Certificates
with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the Fair Market Value of a whole Right, as determined pursuant to
Section 11(d) hereof. 

        (b)   The
Company shall not be required to issue fractions of shares of Common Stock of the Company upon exercise of the Rights or to distribute certificates which evidence
fractional shares of Common Stock of the Company. In lieu of fractional shares of Common Stock of the Company, the Company may pay to the registered holders of Right Certificates at the time such
Rights are exercised as herein provided an amount in cash equal to the same fraction of the Fair Market Value of one share of Common Stock of the Company. For purposes of this Section 14(b),
the Fair Market Value of one share of Common Stock of the Company shall be determined pursuant to Section 11(d) hereof for the Trading Day immediately prior to the date of such exercise. 

        (c)   The
holder of a Right by the acceptance of the Rights expressly waives his right to receive any fractional Rights or any fractional shares upon exercise of a Right,
except as permitted by this Section 14. 

        Section 15.    Rights of Action.    All rights of action in respect of this Agreement, other than rights of
action vested in the Rights Agent pursuant to Sections 18 and 20 hereof, are vested in the respective registered holders of the Right Certificates (or, prior to the Distribution Date, the registered
holders of the Common Stock of the Company); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the Common Stock of the Company), without the consent of the
Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Stock of the Company), may, in such registered holder's own behalf and for such
registered holder's own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Right
evidenced by such Right Certificate in the manner provided in such Right Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is
specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and shall be entitled to specific performance of the obligations
hereunder and injunctive relief against actual or threatened violations of the obligations hereunder of any Person subject to this Agreement. Holders of Rights shall be entitled to recover the
reasonable costs and expenses, including attorneys' fees, incurred by them in any action to enforce the provisions of this Agreement. 

        Section 16.    Agreement of Right Holders.    Every holder of a Right, by accepting the same, consents and
agrees with the Company and the Rights Agent and with every other holder of a Right that: 

        (a)   prior
to the Distribution Date, each Right will be transferable only simultaneously and together with the transfer of shares of Common Stock of the Company; 

        (b)   after
the Distribution Date, the Right Certificates are transferable only on the registry books of the Rights Agent if surrendered at the office or offices of the Rights
Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer; 

        (c)   subject
to Sections 6(a) and 7(f), the Company and the Rights Agent may deem and treat the person in whose name a Right Certificate (or, prior to the Distribution Date,
the associated certificate representing Common Stock of the Company) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or
writing on the Right Certificates or the associated certificate representing Common Stock of the Company made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and,
subject to the last sentence of Section 7(e), neither the Company nor the Rights Agent shall be affected by any notice to the contrary; and 

22

 

        (d)   notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as
the result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent
jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority
prohibiting or otherwise restraining performance of such obligations; provided, however, that the Company must use its best efforts to have any such
order, decree or ruling lifted or otherwise overturned as soon as possible. 

        Section 17.    Right Certificate Holder Not Deemed a Shareholder.    No holder, as such, of any Right
Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the shares of Common Stock of the Company or any other securities of the Company which may at any
time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as
such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in Section 25 hereof), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof. 

        Section 18.    Concerning the Rights Agent.    

        (a)   The
Company agrees to pay to the Rights Agent such compensation as shall be agreed to in writing between the Company and the Rights Agent for all services rendered by it
hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and disbursements and other disbursements incurred in the administration and execution of this
Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense,
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the acceptance and
administration of this Agreement, including the costs and expenses of defending against any claim of liability arising therefrom, directly or indirectly. The provisions of this Section 18(a)
shall survive the expiration of the Rights and the termination of this Agreement. 

        (b)   The
Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its administration
of this Agreement in reliance upon any Right Certificate or certificate representing Common Stock of the Company or other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it in good faith and without negligence to be genuine and to be
signed and executed by the proper Person or Persons. 

        (c)   The
Rights Agent shall not be liable for consequential damages under any provision of this Agreement or for any consequential damages arising out of any act or failure
to act hereunder. 

        Section 19.    Merger or Consolidation or Change of Name of Rights Agent.    

        (a)   Any
corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any corporation resulting from any
merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the corporate trust or shareholder services business of the Rights
Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement 

23

 

without
the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor Rights Agent
under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall have been
countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and in case at
that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor or in the name of
the successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 

        (b)   In
case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned but not delivered, the
Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been
countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement. 

        Section 20.    Duties of Rights Agent.    The Rights Agent undertakes the duties and obligations expressly
imposed by this Agreement upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound: 

        (a)   The
Rights Agent may consult with legal counsel selected by it (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete
authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion. 

        (b)   Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without
limitation, the identity of any Acquiring Person and the determination of "Fair Market Value") be proved or established by the Company prior to taking or suffering any action hereunder, such fact or
matter (unless other evidence in respect thereof shall be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by a person believed by the
Rights Agent to be the Chairman of the Board of Directors, a Vice Chairman of the Board of Directors, the President, a Vice President, the Treasurer, any Assistant Treasurer, the Secretary or an
Assistant Secretary of the Company and
delivered to the Rights Agent. Any such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in
reliance upon such certificate. 

        (c)   The
Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct. 

        (d)   The
Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Right Certificates (except its
countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 

        (e)   The
Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof
by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be 

24

 

responsible
for any change in the exercisability of the Rights (including the Rights becoming void pursuant to Section 7(e) hereof) or any adjustment required under the provisions of Sections
11, 13 or 23(c) hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect
to the exercise of Rights evidenced by Right Certificates after receipt of a certificate describing any such adjustment furnished in accordance with Section 12 hereof), nor shall it be
responsible for any determination by the Board of Directors of the Company of the Fair Market Value of the Rights or shares of Common Stock of the Company pursuant to the provisions of
Section 14 hereof; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock of the Company to be
issued pursuant to this Agreement or any Right Certificate or as to whether or not any shares of Common Stock of the Company will, when so issued, be validly authorized and issued, fully paid and
nonassessable. 

        (f)    The
Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts,
instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

        (g)   The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder and certificates delivered pursuant to
any provision hereof from any person believed by the Rights Agent to be the Chairman of the Board of Directors, any Vice Chairman of the Board of Directors, the President, a Vice President, the
Secretary, an Assistant
Secretary, the Treasurer or an Assistant Treasurer of the Company, and is authorized to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for
any action taken or suffered to be taken by it in good faith in accordance with instructions of any such officer. Any application by the Rights Agent for written instructions from the Company may, at
the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights Agent under this Agreement and the date on or after which such action shall be taken or
such omission shall be effective. The Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in accordance with a proposal included in such application on or after
the date specified in such application (which date shall not be less than five Business Days after the date any officer of the Company actually receives such application, unless any such officer shall
have consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received written instructions in
response to such application specifying the action to be taken or omitted. 

        (h)   The
Rights Agent and any shareholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or
become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not the
Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal entity. 

        (i)    The
Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or
agents. 

        (j)    No
provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder or in the exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not
reasonably assured to it. 

25

 

        (k)   If,
with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the form of assignment or form of
election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause (1) or clause (2) thereof, the Rights Agent shall not take any
further action with respect to such requested exercise or transfer without first consulting with the Company. 

        Section 21.    Change of Rights Agent.    The Rights Agent or any successor Rights Agent may resign and be
discharged from its duties under this Agreement upon thirty (30) days' notice in writing mailed to the Company by first class mail; provided,
however, that in the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to
have resigned automatically on the effective date of such termination. The Company may remove the Rights Agent or any successor Rights Agent (with or without cause), effective immediately or on a
specified date, by written notice given to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock of the Company, and by giving notice to the
holders of the Right Certificates by any means reasonably determined by the Company to inform such holders of such removal (including without limitation, by including such information in one or more
of the Company's reports to shareholders or reports or filings with the Securities and Exchange Commission). If the Rights Agent shall resign or be removed or shall otherwise become incapable of
acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit his
Right Certificate for inspection by the Company), then the incumbent Rights Agent or the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment
of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a corporation organized and doing business under the laws of the United
States or of the State of Delaware or the State of New York (or of any other state of the United States so long as such corporation is authorized to do business as a banking institution in the State
of Delaware or the State of New York), in good standing, which is authorized under such laws to exercise stock transfer or corporate trust powers and is subject to supervision or examination by
federal or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $10,000,000 or (b) an Affiliate of a Person described in
clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights
Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor
Rights Agent and each transfer agent of the Common Stock of the Company, and give notice to the holders of the Right Certificates by any means reasonably determined by the Company to inform such
holders of such appointment (including without limitation, by including such information in one or more of the Company's reports to shareholders or reports or filings with the Securities and Exchange
Commission). Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be. 

        Section 22.    Issuance of New Right Certificates.    Notwithstanding any of the provisions of this Agreement
or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by the Board of Directors of the Company to reflect any
adjustment or change in the Exercise Price per share and the number or kind or class of shares of stock or other securities or property purchasable under the Right Certificates made in accordance with
the provisions of this Agreement. In addition, in connection with the issuance or sale of shares of Common Stock of the Company following the Distribution Date and prior to the 

26

 

redemption
or expiration of the Rights, the Company (a) shall, with respect to shares of Common Stock of the Company so issued or sold pursuant to the exercise of stock options or under any
employee plan or arrangement, or upon the exercise, conversion or exchange of securities hereafter issued by the Company, and (b) may, in any other case, if deemed necessary or appropriate by
the Board of Directors of the Company, issue Right Certificates representing the appropriate number of Rights in connection with such issuance or sale; provided,
however, that (i) no such Right Certificate shall be issued if, and to the extent that, the Company shall be advised by counsel that such issuance would create a
significant risk of material adverse tax consequences to the Company or the person to whom such Right Certificate would be issued, and (ii) no such Right Certificate shall be issued if, and to
the extent that, appropriate adjustments shall otherwise have been made in lieu of the issuance thereof. 

        Section 23.    Redemption.    

        (a)   The
Board of Directors of the Company may, at its option, redeem all but not less than all of the then outstanding Rights at a redemption price of $0.01 per Right,
appropriately adjusted to reflect any stock dividend declared or paid, any subdivision or combination of the outstanding shares of Common Stock of the Company or any similar event occurring after the
date of this Agreement (such redemption price, as adjusted from time to time, being hereinafter referred to as the "Redemption Price"). The Rights may
be redeemed only until the earlier to occur of (i) the time at which any Person becomes an Acquiring Person or (ii) the Final Expiration Date. 

        (b)   Immediately
upon the action of the Board of Directors of the Company ordering the redemption of the Rights in accordance with Section 23 hereof, and without any
further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so
held. Promptly after the action of the Board of Directors of the Company ordering the redemption of the Rights in accordance with Section 23 hereof, the Company shall give notice of such
redemption to the Rights Agent and the holders of the then outstanding Rights by mailing such notice to the Rights Agent and to all such holders at their last addresses as they appear upon the
registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the Transfer Agent for the Common Stock of the Company. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last
addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice.
Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or
purchase for value any Rights at any time in any manner other than
that specifically set forth in this Section 23 or Section 24 hereof or in connection with the purchase of shares of Common Stock of the Company prior to the Distribution Date. 

        (c)   The
Company may, at its option, pay the Redemption Price in cash, shares of Common Stock of the Company (based on the Fair Market Value of the Common Stock of the
Company as of the time of redemption) or any other form of consideration deemed appropriate by the Board of Directors of the Company. 

        Section 24.    Exchange.    

        (a)   (i)
The Board of Directors of the Company may, at its option, at any time on or after the occurrence of a Section 11(a)(ii) Event, exchange all or part of
the then outstanding and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of Section 7(e) hereof) for shares of Common Stock of the Company at
an exchange ratio of one share of Common Stock of the Company per Right (or a lesser ratio as determined by 

27

 

the
Board of Directors of the Company, if the Company does not have sufficient authorized and unreserved shares of Common Stock of the Company), appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to as the "Section 24(a)(i) Exchange
Ratio"). Notwithstanding the foregoing, the Board of Directors of the Company shall not be empowered to effect such exchange at any time after any Person (other than an Exempt
Person), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Stock of the Company. 

         (ii)  Notwithstanding
the foregoing, the Board of Directors of the Company may, at its option, at any time on or after the occurrence of a
Section 11(a)(ii) Event, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions of
Section 7(e) hereof) for shares of Common Stock of the Company at an exchange ratio specified in the following sentence (or a lesser ratio as determined by the Board of Directors of the
Company, if the Company does not have sufficient authorized and unreserved shares of Common Stock of the Company), as appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date of this Agreement. Subject to the adjustment described in the foregoing sentence, each Right may be exchanged for that number of shares of Common Stock of the
Company obtained by dividing the Spread (as defined in Section 11(a)(iii)) by the then Fair Market Value of one share of Common Stock of the Company on the earlier of (x) the date on
which any person becomes an Acquiring Person or (y) the date on which a tender or exchange offer by any Person (other than an Exempt Person) is first published or sent or given within the
meaning of Rule 14d-4(a) of the Exchange Act or any successor rule, if upon consummation thereof such Person could become an Acquiring Person (such exchange ratio being referred to
herein as the "Section 24(a)(ii) Exchange Ratio"). Notwithstanding the foregoing, the Board of Directors of the Company shall not be
empowered to effect such exchange at any time after any Person (other than an
Exempt Person), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Stock of the Company. 

        (b)   Immediately
upon the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to subsection (a) of this Section 24 and
without any further action and without any notice, the right to exercise such Rights pursuant to Section 11(a)(ii) shall terminate and the only right thereafter of a holder of such
Rights shall be to receive that number of shares of Common Stock of the Company equal to the number of such Rights held by such holder multiplied by the Section 24(a)(i) Exchange Ratio
or the Section 24(a)(ii) Exchange Ratio, as applicable; provided, however, that the holder of a Right exchanged pursuant to this
Section 24 shall continue to have the right to purchase securities of the Principal Party following a Section 13 Event which has occurred or may thereafter occur, as set forth in
Section 13 hereof. The Company shall promptly give notice of any such exchange in accordance with Section 26 hereof and shall promptly mail a notice of any such exchange to all of the
holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent; provided, however, that the failure to give,
or any defect in, such notice shall not affect the validity of such exchange. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of exchange will state the method by which the exchange of the shares of Common Stock of the Company for Rights will be effected and, in the event of any partial exchange, the
number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become null and void pursuant to the provisions of
Section 7(e) hereof) held by each holder of Rights. 

28

 

        (c)   In
any exchange pursuant to this Section 24, the Company, at its option, may substitute Common Stock Equivalents for Common Stock of the Company exchangeable for
Rights, at the applicable Section 24(a)(i) Exchange Ratio or Section 24(a)(ii) Exchange Ratio, for each share of Common Stock of the Company, as appropriately adjusted to
reflect adjustments in the voting, liquidation and dividend rights of the Common Stock Equivalents pursuant to the terms thereof, so that such Common Stock Equivalents delivered in lieu of each share
of Common Stock of the Company shall have the same voting, liquidation and dividend rights as one share of Common Stock of the Company. 

        (d)   In
the event that there shall not be sufficient shares of Common Stock of the Company (or Common Stock Equivalents) issued but not outstanding or authorized but unissued
to permit any exchange of Rights as contemplated in accordance with this Section 24, (i) the Company shall take all such action as may be necessary to authorize additional shares of
Common Stock of the Company (or Common Stock Equivalents) for issuance upon exchange of the Rights and (ii) the Board of Directors of the Company may determine to exchange shares of Common
Stock of the Company for then outstanding and exercisable Rights at an exchange ratio of less than one share of Common Stock of the Company per Right, appropriately adjusted so that all (and not less
than all) shares of Common Stock of the Company issued but not outstanding or authorized but unissued (and not reserved for issuance other than upon exercise of the Rights) are issued in the exchange
contemplated by this Section 24. 

        (e)   The
Company shall not be required to issue fractions of Common Stock of the Company or to distribute certificates which evidence fractional shares of Common Stock of the
Company. If the Company elects not to issue such fractional shares of Common Stock of the Company, the Company shall pay, in lieu of such fractional shares of Common Stock of the Company, to the
registered holders of the Right Certificates with regard to which such fractional shares of Common Stock of the Company would otherwise be issuable, an amount in cash equal to the same fraction of the
Fair Market Value of a whole share of Common Stock of the Company. For the purposes of this paragraph (e), the Fair Market Value of a whole share of Common Stock of the Company shall be the
closing price of a share of Common Stock of the Company (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of
exchange pursuant to this Section 24. 

        Section 25.    Notice of Certain Events.    

        (a)   In
case the Company shall propose, at any time after the Distribution Date, (i) to pay any dividend payable in stock of any class to the holders of shares of
Common Stock of the Company or to make any other distribution to the holders of shares of Common Stock of the Company (other than a regular periodic cash dividend out of earnings or retained earnings
of the Company), or (ii) to offer to the holders of shares of Common Stock of the Company rights or warrants to subscribe for or to purchase any additional shares of shares of Common Stock of
the Company or shares of stock of any class or any other securities, rights or options, or (iii) to effect any reclassification of its shares of Common Stock of the Company (other than a
reclassification involving only the subdivision of outstanding shares of shares of Common Stock of the Company), or (iv) to effect any consolidation or merger into or with, or to effect any
sale, mortgage or other transfer (or to permit one or more of its Subsidiaries to effect any sale, mortgage or other transfer), in one transaction or a series of related transactions, of 50% or more
of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person (other than a Subsidiary of the Company in one or more transactions each of which is not
prohibited by the proviso at the end of the first sentence of Section 11(n) hereof), or (v) to effect the liquidation, dissolution or winding up of the Company, then in each such case,
the Company shall give to each holder of a Right Certificate and to the Rights Agent, in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date
for the purposes of 

29

 

such
stock dividend, distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and
the date of participation therein by the holders of the shares of Common Stock of the Company, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by
clause (i) or (ii) above at least twenty (20) days prior to the record date for determining holders of the shares of Common Stock of the Company for purposes of such action, and
in the case of any such other action, at least twenty (20) days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the shares of
Common Stock of the Company, whichever shall be the earlier; provided, however, no such notice shall be required pursuant to this Section 25 as a
result of any Subsidiary of the Company effecting a consolidation or merger with or into, or effecting a sale or other transfer of assets or earnings power to, any other Subsidiary of the Company in a
manner not inconsistent with the provisions of this Agreement. 

        (b)   In
case any Section 11(a)(ii) Event shall occur, then, in any such case, the Company shall as soon as practicable thereafter give to each registered holder
of a Right Certificate and to the Rights Agent, in accordance with Section 26 hereof, a notice of the occurrence of such event, which shall specify the event and the consequences of the event
to holders of Rights under Section 11(a)(ii) hereof. 

        Section 26.    Notices.    Notices or demands authorized by this Agreement to be given or made by the Rights
Agent or by the holder of any Right Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, by facsimile transmission or by
nationally-recognized overnight courier addressed (until another address is filed in writing with the Rights Agent) as follows: 

Medwave, Inc.

435 Newbury Street

Suite 206

Danvers, MA 01923

Facsimile No. (978) 762-8908

Attention: Corporate Secretary 

        Subject
to the provisions of Section 21, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Right Certificate to or on
the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, by facsimile transmission or by nationally-recognized overnight courier addressed (until another
address is filed in writing with the Company) as follows: 

Wells
Fargo Bank Minnesota, N.A.

161 North Concord Exchange

S. St. Paul, MN 55075-1139

Facsimile No. (651) 450-4033

Attention: Administration 

        Notices
or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate (or, prior to the Distribution Date, to the
holder of any certificate representing shares of Common Stock of the Company) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address
of such holder as shown on the registry books of the Company. 

        Section 27.    Supplements and Amendments.    Prior to the occurrence of a
Section 11(a)(ii) Event, the Company and the Rights Agent shall, if the Board of Directors of the Company so directs, supplement or amend any provision of this Agreement as the Board of
Directors of the Company may 

30

 

deem
necessary or desirable without the approval of any holders of certificates representing shares of Common Stock of the Company. From and after the occurrence of a
Section 11(a)(ii) Event, the Company and the Rights Agent shall, if the Board of Directors of the Company so directs, supplement or amend this Agreement without the approval of any
holder of Right Certificates in order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which may be defective or inconsistent with any other
provisions herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to change or supplement the provisions hereof in any manner which the Board of Directors of the Company
may deem necessary or desirable and which shall not adversely affect the interests of the holders of Right Certificates (other than an Acquiring Person or any Affiliate or Associate of an Acquiring
Person); provided, however, that from and after the occurrence of a Section 11(a)(ii) Event this Agreement may not be supplemented or amended to lengthen, pursuant to clause (iii)
of this sentence, (A) a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable or (B) any other time period unless such lengthening is
for the purpose of protecting, enhancing or clarifying the rights of, and the benefits to, the holders of Rights (other than an Acquiring Person or any Affiliate or Associate of an Acquiring Person).
Without limiting the foregoing, the Company may at any time prior to the occurrence of a Section 11(a)(ii) Event amend this Agreement to lower the threshold set forth in
Section 1(a) to not less than the greater of (i) the sum of .001% and the largest percentage of the outstanding Common Stock of the Company then known by the Company to be Beneficially
Owned by any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any Subsidiary of the Company, or any entity holding Common Stock of the Company
for or pursuant to the terms of any such plan) and (ii) 10%. Upon the delivery of such certificate from an appropriate officer of the Company which states that the proposed supplement or
amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment, and any failure of the Rights Agent to so execute such supplement or
amendment shall not affect the validity of the actions taken by the Board of Directors of the Company pursuant to this Section 27. Prior to the occurrence of a
Section 11(a)(ii) Event, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common Stock of the Company. Notwithstanding any other
provision hereof, the Rights Agent's consent must be obtained regarding any amendment or supplement pursuant to this Section 27 which alters the Rights Agent's rights or duties. 

        Section 28.    Successors.    All the covenants and provisions of this Agreement by or for the benefit of the
Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 

        Section 29.    Determinations and Actions by the Board of Directors.    The Board of Directors of the Company
shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board of Directors or to the Company, or as may be necessary
or advisable in the administration of this Agreement, including without limitation, the right and power to (i) interpret the provisions of this Agreement and (ii) make all determinations
and computations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend the Agreement). All such actions,
calculations, interpretations
and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board of Directors in good faith shall (x) be
final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties, and (y) not subject any member of the Board of Directors to any liability to the
holders of the Rights or to any other person. 

        Section 30.    Benefits of this Agreement.    Nothing in this Agreement shall be construed to give to any
person or corporation other than the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock of the Company) any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and 

31

 

exclusive
benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, registered holders of the Common Stock of the Company). 

        Section 31.    Severability.    If any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force
and effect and shall in no way be affected, impaired or invalidated; provided, however, that notwithstanding anything in this Agreement to the contrary,
if any such term, provision, covenant or restriction is held by such court or authority to be invalid, void or unenforceable and the Board of Directors of the Company determines in its good faith
judgment that severing the invalid language from the Agreement would adversely affect the purpose or effect of the Agreement, the right of redemption set forth in Section 23 hereof shall be
reinstated and shall not expire until the Close of Business on the tenth day following the date of such determination by the Board of Directors. 

        Section 32.    Governing Law.    This Agreement, each Right and each Right Certificate issued hereunder shall
be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of the State of Delaware applicable to
contracts to be made and to be performed entirely within the State of Delaware. The courts of the State of Delaware and of the United States of America located in the State of Delaware (the
"Delaware Courts") shall have exclusive jurisdiction over any litigation arising out of or relating to this Agreement and the transactions contemplated
hereby, and any Person commencing or otherwise involved in any such litigation shall waive any objection to the laying of venue of such litigation in the Delaware Courts and shall not plead or claim
in any Delaware Court that such litigation brought therein has been brought in an inconvenient forum. 

        Section 33.    Counterparts.    This Agreement may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

        Section 34.    Descriptive Headings.    Descriptive headings of the several Sections of this Agreement are
inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

[Remainder
of page intentionally left blank] 

32

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as an instrument under seal and attested, all as of the day and year first above written. 

	ATTEST:	 	MEDWAVE, INC.
	

By:	
 	

/s/  KATHRYN DYER      
	
 	

By:	
 	

/s/  TIMOTHY J. O'MALLEY      
 Name: Timothy J. O'Malley

Title: President and Chief Executive Officer
	

ATTEST:	
 	

WELLS FARGO BANK MINNESOTA, N.A.

as Rights Agent
	

By:	
 	

/s/  JENNIFER L. LENO      
	
 	

By:	
 	

/s/  CINDY GESME      
 Name: Cindy Gesme

Title: Account Manager/Officer

33

 
 

Exhibit A    
    

[Form
of Right Certificate] 

Certificate
No. R-_______ Rights 

        NOT
EXERCISABLE AFTER SEPTEMBER 30, 2013 OR EARLIER IF NOTICE OF REDEMPTION IS GIVEN. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF MEDWAVE, INC., AT $0.01 PER RIGHT, ON
THE TERMS SET FORTH IN THE SHAREHOLDER RIGHTS AGREEMENT BETWEEN MEDWAVE, INC. AND WELLS FARGO BANK MINNESOTA, N.A., AS RIGHTS AGENT, DATED AS OF SEPTEMBER 29, 2003 (THE "RIGHTS AGREEMENT").
UNDER CERTAIN CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN ASSOCIATE OR AFFILIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE
DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. 

Right
Certificate 

MEDWAVE, INC. 

        This
certifies that ___________, or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Shareholder Rights Agreement dated as of September 29, 2003 (the "Rights Agreement") between Medwave, Inc. (the "Company") and Wells Fargo Bank
Minnesota, N.A., as Rights Agent (the "Rights Agent"), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to the close of
business on September 30, 2013 at the office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, one fully paid, non-assessable share of
the common stock, no par value (the "Common Stock"), of the Company, at a purchase price of            per share (the "Exercise Price"), upon presentation and surrender of this Right
Certificate
with the Form of Election to Purchase and the related Certificate duly executed. The number of Rights evidenced by this Right Certificate (and the number of shares which may be purchased upon exercise
thereof) set forth above,
and the Exercise Price per share set forth above, are the number and Exercise Price as of __________ based on the Common Stock as constituted at such date. 

        Upon
the occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights Agreement), if the Rights evidenced by this Right Certificate are beneficially owned
by (i) an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person or
Associate or Affiliate thereof, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a Person who, after such transfer, became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence of such
Section 11(a)(ii) Event. 

        As
provided in the Rights Agreement, the Exercise Price and the number of shares of Common Stock or other securities which may be purchased upon the exercise of the Rights evidenced by
this Right Certificate are subject to modification and adjustment upon the happening of certain events. 

        This
Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates, which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances
set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the principal office of the Company and the designated office of the Rights Agent and are also available upon written
request to the Company or the Rights Agent. 

 

        This
Right Certificate, with or without other Right Certificates, upon surrender at the office or offices of the Rights Agent designated for such purpose, may be exchanged for another
Right Certificate or Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of shares of Common Stock as the Rights evidenced by the Right
Certificate or Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof
another Right Certificate or Certificates for the number of whole Rights not exercised. If this Right Certificate shall be exercised in whole or in part pursuant to Section 11(a)(ii) of
the Rights Agreement, the holder shall be entitled to receive this Right Certificate duly marked to indicate that such exercise has occurred as set forth in the Rights Agreement. 

        Under
certain circumstances, subject to the provisions of the Rights Agreement, the Board of Directors of the Company at its option may exchange all or any part of the Rights evidenced
by this Certificate for shares of the Company's Common Stock at an exchange ratio (subject to adjustment) specified in the Rights Agreement. 

        Subject
to the provisions of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by the Board of Directors of the Company at its option at a redemption price
of $0.01 per Right (payable in cash, Common Stock or other consideration deemed appropriate by the Board of Directors). 

        The
Company is not obligated to issue fractional shares of stock upon the exercise of any Right or Rights evidenced hereby. If the Company elects not to issue such fractional shares, in
lieu thereof a cash payment will be made, as provided in the Rights Agreement. 

        No
holder of this Right Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of shares of Common Stock or any other securities of
the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Rights Agreement. 

        This
Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by an authorized signatory of the Rights Agent. 

2

 

        WITNESS
the facsimile signature of the proper officers of the Company as a document under corporate seal. 

	Attested:	 	MEDWAVE, INC.
	

By:	
 	

 [Secretary or Assistant Secretary]	
 	

By:	
 	

 Name:

Title: [Chairman, Vice Chairman, President or Vice President]

	Countersigned:	 	 	 	 
	

WELLS FARGO BANK

MINNESOTA, N.A.	
 	

 	
 	

 
	

By:	
 	

 Name:

Title:	
 	

Date:

3

 
 

[Form of Reverse Side of Right Certificate]    
    

 
 

FORM OF ASSIGNMENT
  (To be executed by the registered holder if such
  holder desires to transfer the Right Certificate.)    
    

        
FOR VALUE RECEIVED ________________ hereby sells, assigns and transfers unto ________________ (Please print name and address of transferee) ________________ this Right Certificate, together with all
right, title and interest therein, and does hereby irrevocably constitute and appoint ________________ Attorney, to transfer the within Right Certificate on the books of the within-named Company, with
full power of substitution. 

	Dated: _____________________	 	

	

 	
 	

	 	 	Signature

Signature
Medallion Guaranteed: __________________________ 

 
 

CERTIFICATE    
    

        The undersigned hereby certifies by checking the appropriate boxes that: 

        (1)   the
Rights evidenced by this Right Certificate _______ are _______ are not being transferred by or on behalf of a Person who is or was an Acquiring Person or an
Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement); and 

        (2)   after
due inquiry and to the best knowledge of the undersigned, the undersigned _______ did _______ did not directly or indirectly acquire the Rights evidenced by this
Right Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate of any such Person. 

	Dated: _____________________	 	

	

 	
 	

	 	 	Signature

 
 

NOTICE    
    

        The signature to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this Right Certificate in every particular,
without alteration or enlargement or any change whatsoever. 

 
 

FORM OF ELECTION TO PURCHASE    
    

 
 

(To be executed if holder desires to
  exercise the Right Certificate.)    
    

To
MEDWAVE, INC.: 

        The
undersigned hereby irrevocably elects to exercise _______ Rights represented by this Right Certificate to purchase the shares of Common Stock issuable upon the exercise of the Rights
(or such other securities of the Company or of any other person which may be issuable upon the exercise of the Rights) and requests that certificates for such shares be issued in the name of: 

Please
insert social security or other identifying taxpayer number: __________________ 

__________________________________________________________________________ 

__________________________________________________________________________

(Please
print name and address) 

        If
such number of Rights shall not be all the Rights evidenced by this Right Certificate or if the Rights are being exercised pursuant to Section 11(a)(ii) of the Rights
Agreement, a new Right Certificate for the balance of such Rights shall be registered in the name of and delivered to: 

Please
insert social security or other identifying taxpayer number: __________________ 

__________________________________________________________________________ 

__________________________________________________________________________

(Please
print name and address) 

	Dated: _____________________	 	

	

 	
 	

	 	 	Signature

Signature
Guaranteed: _________________________________ 

 
 

CERTIFICATE    
    

        The undersigned hereby certifies by checking the appropriate boxes that: 

        (1)   the
Rights evidenced by this Right Certificate _______ are _______ are not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate
or Associate of any such Person (as such terms are defined in the Rights Agreement); and 

        (2)   after
due inquiry and to the best knowledge of the undersigned, the undersigned _______ did _______ did not directly or indirectly acquire the Rights evidenced by this
Right Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate of any such Person. 

	Dated: _____________________	 	

	

 	
 	

	 	 	Signature

 
 

NOTICE    
    

        The signature to the foregoing Election to Purchase and Certificate must correspond to the name as written upon the face of this Right Certificate in every
particular, without alteration or enlargement or any change whatsoever. 

QuickLinks

MEDWAVE, INC. AND WELLS FARGO BANK MINNESOTA, N.A. AS RIGHTS AGENT SHAREHOLDER RIGHTS AGREEMENT DATED AS OF SEPTEMBER 29, 2003

TABLE OF CONTENTS

SHAREHOLDER RIGHTS AGREEMENT

Exhibit A

[Form of Reverse Side of Right Certificate]

FORM OF ASSIGNMENT (To be executed by the registered holder if such holder desires to transfer the Right Certificate.)

CERTIFICATE

NOTICE

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise the Right Certificate.)

CERTIFICATE

NOTICE

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