Document:

Exhibit
4.5

 

THIS
NOTE AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS NOTE HAVE NOT
BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF
THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

THIS
NOTE AND ANY COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) (1) TO A
PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT ACQUIRING FOR
ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR THAT IS AN
“ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF
REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (4) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES AND OTHER JURISDICTIONS.

 

THIS
NOTE, ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS CONVERSION AND ANY RELATED
DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE
RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS NOTE AND ANY SUCH SHARES TO
REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION
THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED
SECURITIES GENERALLY.  THE HOLDER OF
THIS NOTE AND ANY SUCH SHARES SHALL BE DEEMED BY THE ACCEPTANCE OF THIS NOTE
AND ANY SUCH SHARES TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

 

THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE
DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY

 

 

AGENT
THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES.

 

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

 

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE
REGISTERED FORM IN THE LIMITED CIRCUMSTANCES REFERRED TO IN THE INDENTURE, THIS
GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

2

 

AMYLIN PHARMACEUTICALS,
INC.

 

2.25% CONVERTIBLE SENIOR
NOTE DUE JUNE 30, 2008

 

	
  No. R-1

  	
  $150,000,000

  

 

CUSIP NO. 032346 AA 6

 

Amylin Pharmaceuticals, Inc., a corporation duly
organized and existing under the laws of the State of Delaware (herein called
the “Company,” which term includes any successor Person under the
Indenture referred to on the reverse hereof), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of
one hundred fifty million United States Dollars (U.S.$150,000,000) (which principal
amount may from time to time be increased or decreased to such other principal
amounts (which, taken together with the principal amounts of all other
Outstanding Securities, shall not exceed $150,000,000 or $175,000,000 if the
Initial Purchasers’ Option is exercised in full)) by adjustments made on the
records of the Trustee hereinafter referred to in accordance with the
Indenture) on  June 30, 2008 and to pay
interest thereon, from June 23, 2003, or from the most recent Interest Payment
Date (as defined below) to which interest has been paid or duly provided for,
semi-annually in arrears on June 30 and December 30 in each year (each, an “Interest
Payment Date”), commencing December 30, 2003, at the rate of 2.25% per
annum, until the principal hereof is due, and at the rate of 2.25% per annum on
any overdue principal and premium, if any, and, to the extent permitted by law,
on any overdue interest. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the June 15 or December 15 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date.  Except as otherwise provided in the
Indenture, any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Company, notice whereof shall be given to Holders of Securities not less than
10 days prior to the Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any automated quotation
system or securities exchange on which the Securities may be quoted or listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. Payments of principal shall be made upon the
surrender of this Security at the option of the Holder at the Corporate Trust
Office of the Trustee, or at such other office or agency of the Company as may
be designated by it for such purpose in the Borough of Manhattan, The City of
New York, in such lawful monies of the United States of America as at the time
of payment shall be legal tender for the payment of public and private debts,
or at such other offices or agencies as the Company may designate, by United
States Dollar check drawn on, or wire transfer to, a United

 

3

 

States Dollar account (such a wire transfer to be made only to a Holder
of an aggregate principal amount of Securities in excess of U.S. $2,000,000 and
only if such Holder shall have furnished wire instructions in writing to the
Trustee no later than 15 days prior to the relevant payment date). Payment of
interest on this Security may be made by United States Dollar check mailed to
the address of the Person entitled thereto as such address shall appear in the
Security Register, or, upon written application by the Holder to the Security
Registrar setting forth wire instructions not later than the relevant Record
Date, by transfer to a United States Dollar account (such a wire transfer to be
made only to a Holder of an aggregate principal amount of Securities in excess
of U.S. $2,000,000 and only if such Holder shall have furnished wire
instructions in writing to the Trustee no later than 15 days prior to the
relevant payment date).

 

Except as specifically provided herein and in the
Indenture, the Company shall not be required to make any payment with respect
to any tax, assessment or other governmental charge imposed by any government
or any political subdivision or taxing authority thereof or therein.

 

Reference is hereby made to the further provisions of
this Security set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof or an
Authenticating Agent by the manual signature of one of their respective
authorized signatories, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

 

4

 

IN WITNESS WHEREOF, the Company has caused this
Security to be duly executed.

 

 

	
   

  	
  AMYLIN PHARMACEUTICALS,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  
	
   

  
	
  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

  
	
   

  
	
   

  
	
  This is one of the Securities referred to in the
  within-mentioned Indenture.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  

 

5

 

This Security is one of a duly authorized issue of
securities of the Company designated as its “2.25% Convertible Senior Notes due
June 30, 2008” (herein called the “Securities”), limited in
aggregate principal amount to U.S. $150,000,000 (or $175,000,000 if the Initial
Purchasers’ Option is exercised in full), issued and to be issued under an
Indenture, dated as of June 23, 2003, (herein called the “Indenture”),
between the Company and J.P. Morgan Trust Company, National Association, as
Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered.  As provided in the Indenture and subject to
certain limitations therein set forth, Securities are exchangeable for a like
aggregate principal amount of Securities of any authorized denominations as
requested by the Holder surrendering the same upon surrender of the Security or
Securities to be exchanged, at the Corporate Trust Office of the Trustee.  The Trustee upon such surrender by the Holder
will issue the new Securities in the requested denominations.

 

No sinking fund is provided for the Securities.

 

The Securities are subject to provisional redemption
by the Company (a “Provisional Redemption”), in whole or in part, at any
time on or after June 30, 2006, upon notice as set forth in Section 11.5
of the Indenture, at a redemption price equal to the principal amount of the
Securities to be redeemed plus accrued and unpaid interest, if any, to but
excluding the Redemption Date if (i) the Closing Price Per Share of the
Common Stock shall have exceeded 133% of the Conversion Price then in effect
for at least 20 Trading Days in any consecutive 30-Trading Day period ending on
the Trading Day prior to the date of mailing of the notice of redemption pursuant
to Section 11.5 of the Indenture (the “Notice Date”) and (ii) the
Shelf Registration Statement covering resales of the Securities and the Common
Stock is effective and available for use and is expected to remain effective
and available for use for the 30 days following the Redemption Date, unless
registration is no longer required.

 

Upon any such redemption, the Company shall make an
additional payment (the “Make-Whole  Payment”) with respect to the
Securities called for redemption to Holders on the Notice Date in an amount
equal to $112.94 per $1,000 in principal amount of the Securities, less the
amount of any interest actually paid or accrued and unpaid on such Securities
prior to the Redemption Date. The Company shall make the Make-Whole Payment on
all Securities called for redemption, including any Securities converted into
Common Stock pursuant to the terms of the Indenture after the Notice Date and
prior to the Redemption Date. The Make-Whole Payment on Securities converted
into Common Stock pursuant to the terms of the Indenture after the Notice Date
and prior to the Redemption Date shall not be reduced by accrued and unpaid
interest unless the

 

6

 

Redemption Date occurs on or after the Business Day following the
Record Date and prior to the next succeeding Interest Payment Date, in which
case the Make-Whole Payment shall be reduced by the interest due on such
Interest Payment Date.

 

The Company may make the Make-Whole Payment (x) in
cash or (y) subject to fulfillment by the Company of the conditions (A) through
(D) set forth in the following paragraph, in shares of Common Stock, or a
combination of cash and Common Stock, and the Company shall specify the type of
consideration for the Make-Whole Payment in the notices delivered pursuant to
Sections 11.3 and 11.5 of the Indenture. 
For purposes of this paragraph, the fair market value of shares of
Common Stock shall be determined by the Company and shall be equal to 95% of the average of the Closing Prices
Per Share for the five consecutive Trading Days ending on the third Trading Day
prior to the Redemption Date.

 

The following shall constitute the conditions to any
election by the Company to pay the Make-Whole Payment (or any portion thereof)
in shares of Common Stock:

 

(A) the shares of Common Stock to be issued in payment
of the Make-Whole Payment (or any portion thereof) hereunder shall not require
registration under any Federal securities law before such shares may be freely
transferable without being subject to any transfer restrictions under the
Securities Act upon repurchase, or if registration is required, such
registration shall be completed and shall become effective prior to or on the
Redemption Date (and the Company shall state in the notice of Provisional
Redemption that the Company expects that such registration statement shall
remain effective for at least 30 days following the Redemption Date);

 

(B) the shares of Common Stock to be issued in payment
of the Make-Whole Payment (or any portion thereof) hereunder shall not require
registration with, or approval of, any governmental authority under any state
law or any other Federal law before such shares may be validly issued or
delivered upon repurchase, or if such registration is required or such approval
must be obtained, such registration shall be completed or such approval shall
be obtained prior to or on the Redemption Date;

 

(C) the shares of Common Stock to be issued in payment
of the Make-Whole Payment (or any portion thereof) hereunder are quoted, or
shall have been approved for quotation, on The Nasdaq National Market or
listed, or approved for listing, on a national securities exchange, in either
case, prior to or on the Redemption Date; and

 

(D) all shares of Common Stock that may be issued in
payment of the Make-Whole Payment (or any portion thereof) will be issued out
of the Company’s authorized but unissued Common Stock and will, upon issue, be
duly and validly issued and fully paid and non-assessable and free of any
preemptive or similar rights.

 

If any of the conditions set forth in clauses (A)
through (D) above are not satisfied in accordance with the terms thereof, the
Make-Whole Payment shall be paid by the Company only in cash.

 

7

 

In the event of a redemption of the Securities, the
Company will not be required (a) to register the transfer or exchange of
Securities for a period of 15 days immediately preceding the date notice is
given identifying the serial numbers of the Securities called for such
redemption or (b) to register the transfer or exchange of any Security, or
portion thereof, called for redemption.

 

In any case where the due date for the payment of the
principal of, premium, if any, interest, or Liquidated Damages on any Security
or the last day on which a Holder of a Security has a right to convert his
Security shall be, at any Place of Payment or Place of Conversion as the case
may be, a day on which banking institutions at such Place of Payment or Place
of Conversion are authorized or obligated by law or executive order to close,
then payment of principal, premium, if any, interest, or Liquidated Damages, or
delivery for conversion of such Security need not be made on or by such date at
such place but may be made on or by the next succeeding day at such place which
is not a day on which banking institutions are authorized or obligated by law
or executive order to close, with the same force and effect as if made on the
date for such payment or the date fixed for redemption or repurchase, or by
such last day for conversion, and no interest shall accrue on the amount so
payable for the period after such date.

 

Subject to and upon compliance with the provisions of
the Indenture, the Holder of this Security is entitled, at his option, at any
time on or before the close of business on the date of Maturity, or in case
this Security or a portion hereof is called for redemption or the Holder hereof
has exercised his right to require the Company to repurchase this Security or such
portion hereof, then in respect of this Security until the Business Day
immediately preceding, but (unless the Company defaults in making the payment
due upon redemption or repurchase, as the case may be) not after, the close of
business on the Business Day immediately preceding the Redemption Date or the
Repurchase Date, as the case may be, to convert this Security (or any portion
of the principal amount hereof that is an integral multiple of U.S.$1,000,
provided that the unconverted portion of such principal amount is U.S.$1,000 or
any integral multiple of U.S.$1,000 in excess thereof) into fully paid and
nonassessable shares of Common Stock of the Company at an initial Conversion
Rate of 30.7266 shares of Common Stock for each U.S.$1,000 principal amount of
Securities (or at the current adjusted Conversion Rate if an adjustment has
been made as provided in the Indenture) by surrender of this Security, duly
endorsed or assigned to the Company or in blank and, in case such surrender
shall be made during the period from the close of business on any Regular
Record Date next preceding any Interest Payment Date to the opening of business
on such Interest Payment Date (except if this Security or portion thereof has
been called for redemption on a Redemption Date or is repurchasable on a
Repurchase Date occurring, in either case, during the period from the close of
business on any Regular Record Date immediately preceding any Interest Payment
Date to the close of business on the second Business Day following such
Interest Payment Date and, as a result, the right to convert this Security
would otherwise terminate in such period if not exercised), also accompanied by
payment in New York Clearing House or other funds acceptable to the Company of
an amount equal to the interest payable on such Interest Payment Date on the
principal amount of this Security

 

8

 

then being converted, and also the conversion notice hereon duly
executed, to the Company at the Corporate Trust Office of the Trustee, or at
such other office or agency of the Company, subject to any laws or regulations
applicable thereto and subject to the right of the Company to terminate the
appointment of any Conversion Agent (as defined below) as may be designated by
it for such purpose in the Borough of Manhattan, The City of New York, or at
such other offices or agencies as the Company may designate (each a “Conversion
Agent”), provided, further, that if this Security or portion
hereof has been called for redemption (except pursuant to a call for
Provisional Redemption) on a Redemption Date or is repurchasable on a
Repurchase Date occurring, in either case, during the period from the close of
business on any Regular Record Date immediately preceding any Interest Payment
Date to the close of business on the second Business Day following such
Interest Payment Date, and as a result, the right to convert this Security
would otherwise terminate in such period if not exercised and this Security is
surrendered for conversion during such period, then the Holder of this Security
on such Regular Record Date will be entitled to receive the interest accruing
hereon from the Interest Payment Date immediately preceding the date of such
conversion to such succeeding Interest Payment Date and the Holder of this
Security who converts this Security or a portion hereof during such period
shall not be required to pay such interest upon surrender of this Security for
conversion.  Subject to the provisions
of the preceding sentence and, in the case of a conversion after the close of
business on the Regular Record Date immediately preceding any Interest Payment
Date and on or before the close of business on such Interest Payment Date, to
the right of the Holder of this Security (or any Predecessor Security of record
as of such Regular Record Date) to receive the related installment of interest
to the extent and under the circumstances provided in the Indenture, no cash
payment or adjustment is to be made on conversion for interest accrued hereon
from the Interest Payment Date immediately preceding the day of conversion, or
for dividends on the Common Stock issued on conversion hereof.  The Company shall thereafter deliver to the
Holder the fixed number of shares of Common Stock (together with any cash
adjustment, as provided in the Indenture) into which this Security is
convertible and such delivery will be deemed to satisfy the Company’s
obligation to pay the principal amount of this Security. No fractions of shares
or scrip representing fractions of shares will be issued on conversion, but
instead of any fractional interest (calculated to the nearest 1/100th of a
share) the Company shall pay a cash adjustment as provided in the Indenture.
The Conversion Rate is subject to adjustment as provided in the Indenture. In
addition, the Indenture provides that in case of certain consolidations or
mergers to which the Company is a party (other than a consolidation or merger
that does not result in any reclassification, conversion, exchange or cancellation
of the Common Stock) or the conveyance, transfer, sale or lease of all or
substantially all of the property and assets of the Company, the Indenture
shall be amended, without the consent of any Holders of Securities, so that
this Security, if then Outstanding, will be convertible thereafter, during the
period this Security shall be convertible as specified above, only into the
kind and amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, transfer, sale or lease by a holder of the
number of shares of Common Stock of the Company into which this Security could
have been converted immediately prior to such consolidation, merger,
conveyance, transfer,

 

9

 

sale or lease (assuming such holder of Common Stock is not a
Constituent Person or an Affiliate of a Constituent Person, failed to exercise
any rights of election and received per share the kind and amount received per
share by a plurality of Non-electing Shares). 
No adjustment in the Conversion Rate will be made until such adjustment
would require an increase or decrease of at least one percent of such rate,
provided that any adjustment that would otherwise be made will be carried
forward and taken into account in the computation of any subsequent adjustment.

 

If this Security is a Registrable Security (as defined in the
Indenture), then the Holder of this Security (including any Person that has a
beneficial interest in this Security) and the Common Stock of the Company
issuable upon conversion hereof is entitled to the benefits of a Registration
Rights Agreement, dated as of June 23, 2003 (the “Registration Rights
Agreement”) between the Company and the Initial Purchasers.  Pursuant to the Registration Rights
Agreement, the Company has agreed for the benefit of the Holders from time to
time of the Registrable Securities that it will, at its expense, (a) within 90
days after the Issue Date file a shelf registration statement (the “Shelf
Registration Statement”) with the Commission with respect to resales of the
Registrable Securities, (b) use its reasonable best efforts to cause such Shelf
Registration Statement to be declared effective by the Commission within 180
days after the Issue Date of the Securities, provided, however, that the
Company may, upon written notice to all the Holders, postpone having the Shelf
Registration Statement declared effective for a reasonable period not to exceed
90 days if the Company possesses material non-public information, the disclosure
of which would have a material adverse effect on the Company and its
subsidiaries taken as a whole, and (c) use its reasonable  best efforts to maintain such Shelf
Registration Statement effective under the Securities Act until the earliest of
(i) the sale of all outstanding Registrable Securities registered under such
Shelf Registration; (ii) the expiration of the period referred to in Rule
144(k) of the Securities Act with respect to Registrable Securities held by
non-affiliates of the Company; and (iii) two years after the effective date of
such Shelf Registration Statement (the “Effectiveness Period”).  The Company will be permitted to suspend the
use of the prospectus which is part of the Shelf Registration Statement during
certain periods of time as provided in the Registration Rights Agreement.

 

If (i) on or prior to the 90th day following the Issue
Date, a Shelf Registration Statement has not been filed with the Commission, or
(ii) on or prior to the 180th day following the Issue Date, such Shelf
Registration Statement is not declared effective (each, a “Registration
Default”), additional interest (“Liquidated Damages”) will accrue on
this Restricted Security from and including the day following such Registration
Default to but excluding the day on which such Registration Default has been
cured. Liquidated Damages will be paid semi-annually in arrears, with the first
semi-annual payment due on the first Interest Payment Date, as applicable, in
respect of the Restricted Securities following the date on which such
Liquidated Damages begin to accrue, and will accrue at a rate per annum equal
to one-quarter of one percent (0.25%) of the principal amount of the Restricted
Securities to and including the 90th day following such Registration Default and
at a rate per annum equal to one-half of one percent

 

10

 

(0.50%) thereof from and after the 91st day following such Registration
Default. Pursuant to the Registration Rights Agreement, in the event that the
Shelf Registration Statement ceases to be effective (or the Holders of
Registrable Securities are otherwise prevented or restricted by the Company
from effecting sales pursuant thereto) (an “Effective Failure”) during
the Effectiveness Period for more than 30 days, whether or not consecutive,
during any 90-day period or for more than 90 days, whether or not consecutive,
during any 12-month period, then the Liquidated Damages will accrue at a rate
per annum equal to an additional one-half of one percent (0.50%) of the
principal amount of the Restricted Securities from the 31st day of the
applicable 90-day period or the 91st day of the applicable 12-month period
until the earlier of (A) such time as the Effective Failure is cured or (B) the
Effectiveness Period expires.

 

Whenever in this Security there is a reference, in any
context, to the payment of the principal of, premium, if any, or interest on,
or in respect of, any Security, such mention shall be deemed to include mention
of the payment of Liquidated Damages payable as described in the preceding
paragraph to the extent that, in such context, Liquidated Damages are, were or
would be payable in respect of such Security and express mention of the payment
of Liquidated Damages (if applicable) in any provisions of this Security shall
not be construed as excluding Liquidated Damages in those provisions of this
Security where such express mention is not made.

 

If this Security is a Registrable Security and the
Holder of this Security (including any Person that has a beneficial interest in
this security) elects to sell this Security pursuant to the Shelf Registration
Statement then, by its acceptance hereof, such Holder of this Security agrees
to be bound by the terms of the Registration Rights Agreement relating to the
Registrable Securities which are the subject of such election.

 

If a Change in Control occurs, the Holder of this
Security, at the Holder’s option, shall have the right, in accordance with the
provisions of the Indenture, to require the Company to repurchase this Security
(or any portion of the principal amount hereof that is at least $1,000 or an
integral multiple of $1,000 in excess thereof, provided that the portion of the
principal amount of this Security to be Outstanding after such repurchase is at
least equal to U.S.$1,000) at a Repurchase Price equal to 100% of the principal
amount thereof plus interest accrued but unpaid to but excluding the Repurchase
Date. At the option of the Company, the Repurchase Price may be paid in cash
or, subject to the conditions provided in the Indenture, by delivery of shares
of Common Stock having a fair market value equal to the Repurchase Price (less
any cash payments) or a combination thereof. For purposes of this paragraph,
the fair market value of shares of Common Stock shall be determined by the
Company and shall be equal to 95% of the average of the Closing Prices Per
Share for the five consecutive Trading Days ending on the third Trading Day
prior to the Repurchase Date.

 

Whenever in this Security there is a reference, in any
context, to the principal of any Security as of any time, such reference shall
be deemed to include reference to the Repurchase Price payable in respect of
such Security to the extent that such Repurchase

 

11

 

Price is, was or would be so payable at such time, and express mention
of the Repurchase Price in any provision of this Security shall not be
construed as excluding the Repurchase Price so payable in those provisions of
this Security when such express mention is not made.

 

In the event of a deposit or withdrawal of an interest
in this Security, including an exchange, transfer, redemption, repurchase or
conversion of this Security in part only, the Trustee, as custodian of the Depositary,
shall make an adjustment on its records to reflect such deposit or withdrawal
in accordance with the Applicable Procedures.

 

If an Event of Default shall occur and be continuing,
the principal of all the Securities, together with accrued interest to the date
of declaration, may be declared due and payable in the manner and with the
effect provided in the Indenture. Upon payment (i) of the amount of principal
so declared due and payable, together with accrued interest to the date of
declaration, and (ii) of interest on any overdue principal and, to the extent
permitted by applicable law, overdue interest, all of the Company’s obligations
in respect of the payment of the principal of and interest on the Securities
shall terminate.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities
under the Indenture at any time by the Company and the Trustee with either (a)
the written consent of the Holders of not less than a majority in principal
amount of the Securities at the time Outstanding, or (b) by the adoption of a
resolution, at a meeting of Holders of the Outstanding Securities at which a
quorum is present, by the Holders of at least a majority in aggregate principal
amount of the Outstanding Securities represented and entitled to vote at such
meeting. The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Securities at the time
Outstanding, on behalf of the Holders of all the Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
in exchange therefor or in lieu hereof whether or not notation of such consent
or waiver is made upon this Security or such other Security.

 

As provided in and subject to the provisions of the
Indenture, the Holder of this Security shall not have the right to institute
any proceeding with respect to the Indenture or for the appointment of a
receiver or trustee or for any other remedy thereunder, unless such Holder
shall have previously given the Trustee written notice of a continuing Event of
Default, the Holders of not less than 25% in principal amount of the
Outstanding Securities shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and
offered the Trustee reasonable indemnity and the Trustee shall not have
received from the Holders of a majority in principal amount of the Securities Outstanding
a direction inconsistent with such request, and shall have failed to institute
any such proceeding, for 60 days after receipt of such notice,

 

12

 

request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof, premiums if any, or interest (including Liquidated
Damages) hereon on or after the respective due dates expressed herein or for the
enforcement of the right to convert this Security as provided in the Indenture.

 

No reference herein to the Indenture and no provision
of this Security or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of,
premium, if any, and interest (including Liquidated Damages) on this Security
at the times, places and rate, and in the coin or currency, herein prescribed
or to convert this Security as provided in the Indenture.

 

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable on
the Security Register upon surrender of this Security for registration of
transfer at the Corporate Trust Office of the Trustee or at such other office
or agency of the Company as may be designated by it for such purpose in the
Borough of Manhattan, The City of New York (which shall initially be an office
or agency of the Trustee), or at such other offices or agencies as the Company
may designate, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder thereof or his attorney duly authorized in writing, and
thereupon one or more new Securities, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees by the Registrar. No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to recover any tax or other governmental charge payable in
connection therewith.

 

Prior to due presentation of a Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name such Security is registered,
as the owner thereof for all purposes, whether or not such Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

 

No recourse for the payment of the principal (and
premium, if any) or interest on this Security and no recourse under or upon any
obligation, covenant or agreement of the Company in the Indenture or any
indenture supplemental thereto or in any Security, or because of the creation
of any indebtedness represented thereby, shall be had against any incorporator,
stockholder, employee, agent, officer or director or subsidiary, as such, past,
present or future, of the Company or of any successor corporation, either directly
or through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of consideration for the issue hereof, expressly waived and released.

 

13

 

THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF
AMERICA.

 

All terms used in this Security which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

 

ABBREVIATIONS

 

The following abbreviations, when used in the
inscription of the face of this Security, shall be construed as though they
were written out in full according to applicable laws or regulations:

 

	
  TEN COM

  	
   

  	
  as tenant in common

  	
   

  	
  UNIF GIFT MIN ACT

  	
   

  	
  ____Custodian____

  
	
  TEN ENT

  	
   

  	
  as tenants by the entireties (Cust)

  	
   

  	
   

  	
   

  	
  (Cust)

  	
  (Minor)

  
	
  JT TEN

  	
   

  	
  as joint tenants with right of survivorship and not
  as tenants in common

  	
   

  	
   

  	
   

  	
  under Uniform Gifts to Minors Act ____

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
               
  (State)

  

 

Additional abbreviations may also be used though not
in the above list.

 

14

 

ELECTION OF HOLDER TO
REQUIRE REPURCHASE

 

(1)           Pursuant
to Section 13.1 of the Indenture, the undersigned hereby elects to have this
Security repurchased by the Company.

 

(2)           The
undersigned hereby directs the Trustee or the Company to pay it or
                         
an amount in cash or, at the Company’s election, Common Stock valued as set
forth in the Indenture, equal to 100% of the principal amount to be repurchased
(less any cash payments) (as set forth below), or a combination of cash and
Common Stock, plus interest accrued to, but excluding, the Repurchase Date, as
provided in the Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature(s)

  	
   

  
	
   

  	
   

  
	
  Signature(s) must be guaranteed by an Eligible

  Guarantor Institution with membership in an

  approved signature guarantee program pursuant

  to Rule 17Ad-15 under the Securities Exchange

  Act of 1934.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  
	
  Principal amount to be repurchased (at least

  U.S. $1,000 or an integral multiple of $1,000

  in excess thereof):
                                          

  	
   

  
	
   

  	
   

  
	
  Remaining principal amount following such

  repurchase (not less than U.S. $1,000):

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

NOTICE: The signature to the foregoing Election must correspond to the
Name as written upon the face of this Security in every particular, without
alteration or any change whatsoever.

 

15Exhibit
4.6

 

Amylin
Pharmaceuticals, Inc.

 

2.25% Convertible Senior Notes due 2008

 

Registration Rights Agreement

 

June 23, 2003

 

Goldman, Sachs & Co.,

Morgan Stanley & Co. Incorporated,

c/o Goldman, Sachs & Co.,

85 Broad Street,

New York, New York 10004.

 

Ladies and Gentlemen:

 

Amylin
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), proposes to
issue and sell to the Purchasers (as defined herein) upon the terms set forth
in the Purchase Agreement (as defined herein) its 2.25% Convertible Senior
Notes due 2008 (the “Securities”).  As
an inducement to the Purchasers to enter into the Purchase Agreement and in
satisfaction of a condition to the obligations of the Purchasers thereunder,
the Company agrees with the Purchasers for the benefit of Holders (as defined
herein) from time to time of the Registrable Securities (as defined herein) as
follows:

 

1.             Definitions.

 

(a)           Capitalized
terms used herein without definition shall have the meanings ascribed to them
in the Purchase Agreement.  As used in this
Agreement, the following defined terms shall have the following meanings:

 

“Act” or “Securities Act”
means the United States Securities Act of 1933, as amended.

 

“Affiliate”
of any specified person means any other person which, directly or indirectly,
is in control of, is controlled by, or is under common control with such
specified person.  For purposes of this
definition, control of a person means the power, direct or indirect, to direct
or cause the direction of the management and policies of such person whether by
contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

 

“Closing
Date” means the First Time of Delivery as defined in the Purchase
Agreement.

 

 

“Commission”
means the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular purpose.

 

“Common
Stock” means the Company’s common stock, par value $0.001 per share,
together with any associated preferred share purchase rights.

 

“DTC” means The
Depository Trust Company.

 

“Effective Date” has the meaning assigned
thereto in Section 2(b)(i) hereof.

 

“Effective
Failure” has the meaning assigned thereto in Section 7(b)
hereof.

 

“Effectiveness Period”
has the meaning assigned thereto in Section 2(b)(i) hereof.

 

“Effective Time” means
the time at which the Commission declares the Shelf Registration Statement
effective or at which the Shelf Registration Statement otherwise becomes
effective.

 

“Electing Holder”
has the meaning assigned thereto in Section 3(a)(iii) hereof.

 

“Exchange Act”
means the United States Securities Exchange Act of 1934, as amended.

 

“Holder” means,
any Record Holder and any person that has a beneficial interest in any
Registrable Security in book-entry form.

 

“Indenture” means
the Indenture, dated as of June 23, 2003, between the Company and J.P. Morgan
Trust Company, National Assocation, as amended and supplemented from time to
time in accordance with its terms.

 

“Liquidated
Damages” has the meaning assigned thereto in Section 7(a)
hereof.

 

“Managing Underwriters” means
the investment banker or investment bankers and manager or managers that shall
administer an underwritten offering, if any, conducted pursuant to Section 6
hereof.

 

“NASD Rules” means
the Rules of the National Association of Securities Dealers, Inc., as amended
from time to time.

 

2

 

“Notice and Questionnaire”
means a Notice of Registration Statement and Selling Securityholder
Questionnaire substantially in the form of Appendix A hereto.

 

The term “person” means
an individual, partnership, corporation, trust or unincorporated organization,
or a government or agency or political subdivision thereof.

 

“Prospectus” means
the prospectus (including, without limitation, any preliminary prospectus, any
final prospectus and any prospectus that discloses information previously
omitted from a prospectus filed as part of an effective registration statement
in reliance upon Rule 430A under the Act) included in the Shelf
Registration Statement, as amended or supplemented by any prospectus supplement
with respect to the terms of the offering of any portion of the Registrable
Securities covered by the Shelf Registration Statement and by all other
amendments and supplements to such prospectus, including all material
incorporated by reference in such prospectus and all documents filed after the
date of such prospectus by the Company under the Exchange Act and incorporated
by reference therein.

 

“Purchase Agreement”
means the purchase agreement, dated as of June 18, 2003, between the Purchasers
and the Company relating to the Securities.

 

“Purchasers” means
the Purchasers named in Schedule I to the Purchase Agreement.

 

“Record Holders”
means any person that is the record owner of Registrable Securities.

 

“Registrable Securities”
means all or any portion of the Securities issued from time to time under the
Indenture in registered form and the shares of Common Stock issuable upon
conversion, repurchase or redemption of such Securities; provided, however,
that a security ceases to be a Registrable Security when it is no longer a
Restricted Security.

 

“Registration
Default” has the meaning assigned thereto in Section 7(a)
hereof.

 

“Restricted Security”
means any Security or share of Common Stock issuable upon conversion thereof
except any such Security or share of Common Stock that (i) has been
effectively registered under the Securities Act and sold in a manner
contemplated by the Shelf Registration Statement, (ii) has been
transferred in compliance with Rule 144 under the Securities Act (or any
successor provision thereto) or is transferable pursuant to paragraph (k)
of such Rule 144 (or any successor provision thereto), or (iii) has
otherwise been transferred and a new Security or share of Common Stock not
subject to transfer restrictions under the Securities Act has been delivered by
or on behalf of the Company in accordance with the Indenture.

 

“Rules and Regulations”
means the published rules and regulations of the Commission promulgated under
the Securities Act or the Exchange Act, as in effect at any relevant time.

 

3

 

“Shelf Registration”
means a registration effected pursuant to Section 2 hereof.

 

“Shelf Registration Statement”
means a “shelf” registration statement filed under the Securities Act providing
for the registration of, and the sale on a continuous or delayed basis by the
Holders of, all of the Registrable Securities pursuant to Rule 415 under the
Securities Act and/or any similar rule that may be adopted by the Commission,
filed by the Company pursuant to the provisions of Section 2 of this
Agreement, including the Prospectus contained therein, any amendments and
supplements to such registration statement, including post-effective
amendments, and all exhibits and all material incorporated by reference in such
registration statement.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, or any successor thereto, and the rules,
regulations and forms promulgated thereunder, as the same shall be amended from
time to time.

 

The term “underwriter”
means any underwriter of Registrable Securities in connection with an offering
thereof under a Shelf Registration Statement.

 

(b)           Wherever there is a reference in this
Agreement to a percentage of the “principal amount” of Registrable Securities
or to a percentage of Registrable Securities, Common Stock shall be treated as
representing the principal amount of Securities that was surrendered for
conversion or exchange in order to receive such number of shares of Common
Stock.

 

2.             Shelf Registration.

 

(a)           The
Company shall, no later than 90 calendar days following the Closing Date, file
with the Commission a Shelf Registration Statement relating to the offer and
sale of the Registrable Securities by the Holders from time to time in
accordance with the methods of distribution elected by such Holders and set
forth in such Shelf Registration Statement and, thereafter, shall use its
reasonable best efforts to cause such Shelf Registration Statement to be
declared effective under the Act no later than 180 calendar days following the
Closing Date;  provided, however, that the Company
may, upon written notice to all Electing Holders, postpone having the Shelf
Registration Statement declared effective for a reasonable period not to exceed
90 days after the 180th calendar day following the Closing Date if the Company
possesses material non-public information, the disclosure of which would have a
material adverse effect on the Company and its subsidiaries taken as a whole;
provided, further, however, that no Holder shall be entitled to be named as a
selling securityholder in the Shelf Registration Statement or to use the
Prospectus forming a part thereof for resales of Registrable Securities unless
such Holder is an Electing Holder.  The
Company may furnish any notice to any Holder pursuant to this Section 2(a) by
furnishing the notice to the Holder’s e-mail address indicated on the Notice
and Questionnaire.

 

(b)           The Company shall use its reasonable
best efforts:

 

4

 

(i)            to keep the Shelf Registration
Statement continuously effective in order to permit the Prospectus forming a
part thereof to be usable by Holders until the earliest of (1) the sale of all
Registrable Securities registered under the Shelf Registration Statement; (2)
the expiration of the period referred to in Rule 144(k) under the Act with
respect to all Registrable Securities held by Persons that are not Affiliates
of the Company; and (3) two years from the date (the “Effective Date”) such
Shelf Registration Statement is declared effective (such period being referred
to herein as the “Effectiveness Period”);

 

(ii)           after the Effective Time of the Shelf
Registration Statement, as promptly as practicable upon the request of any
Holder of Registrable Securities that is not then an Electing Holder, to take
any action reasonably necessary to enable such Holder to use the Prospectus
forming a part thereof for offers and resales of Registrable Securities,
including, without limitation, any action necessary to identify such Holder as
a selling securityholder in the Shelf Registration Statement; provided,
however, that nothing in this subparagraph shall relieve such Holder
of the obligation to return a completed and signed Notice and Questionnaire to
the Company in accordance with Section 3(a)(ii) hereof; and

 

(iii)          if at any time the Securities,
pursuant to Article XII of the Indenture, are convertible into securities other
than Common Stock, to cause, or to cause any successor under the Indenture to
cause, such securities to be included in the Shelf Registration Statement or
otherwise registered under the Act no later than the date on which the
Securities may then be convertible into such securities.

 

The Company shall be deemed not to have used its reasonable best
efforts to keep the Shelf Registration Statement effective during the requisite
period if the Company voluntarily takes any action that would result in Holders
of Registrable Securities covered thereby not being able to offer and sell any
of such Registrable Securities during that period, unless such action is
(A) required by applicable law and the Company thereafter promptly complies
with the requirements of paragraph 3(j) below or (B) permitted pursuant to
Section 2(c) below.

 

(c)           The Company may suspend the use of
the Prospectus for a period not to exceed 30 days in any 90-day period or an
aggregate of 90 days in any 12-month period if the Board of Directors of the
Company shall have determined in good faith that because of valid business
reasons (not including avoidance of the Company’s obligations hereunder),
including the acquisition or divestiture of assets, pending corporate
developments and similar events, it is in the best interests of the Company to
suspend such use, and prior to suspending such use the Company provides the
Electing Holders with written notice of such suspension, which notice need not
specify the nature of the event giving rise to such suspension.  The Company may furnish any notice to any
Holder pursuant to this Section 2(c) by furnishing the notice to the Holder’s
e-mail address indicated on the Notice and Questionnaire.

 

5

 

3.             Registration Procedures.  In connection with the Shelf Registration
Statement, the following provisions shall apply:

 

(a) (i)       Not less than 30 calendar days prior to
the Effective Time of the Shelf Registration Statement, the Company shall mail
the Notice and Questionnaire to the Holders of Registrable Securities that it
has been able to identify from information provided by DTC.  No Holder shall be entitled to be named as a
selling securityholder in the Shelf Registration Statement as of the Effective
Time, and no Holder shall be entitled to use the Prospectus forming a part
thereof for offers and resales of Registrable Securities at any time, unless
such Holder has returned a completed and signed Notice and Questionnaire to the
Company by the deadline for response set forth therein; provided, however, Holders
of Registrable Securities shall have at least 28 calendar days from the date on
which the Notice and Questionnaire is first mailed to such Holders to return a
completed and signed Notice and Questionnaire to the Company.  As a result of comments from the Commission,
the Company may be required to send out a Supplemental Notice and
Questionnaire.  In connection with any
such Supplemental Notice and Questionnaire, Holders of Registrable Securities
may have less than 28 calendar days from the date on which the Supplemental
Notice and Questionnaire is first mailed to such Holders to return a completed
and signed Supplemental Notice and Questionnaire to the Company.

 

(ii)           After the Effective Time of the Shelf
Registration Statement, the Company shall, upon the request of any Holder of
Registrable Securities that is not then an Electing Holder, promptly send a
Notice and Questionnaire to such Holder. 
The Company shall not be required to take any action to name such Holder
as a selling securityholder in the Shelf Registration Statement or to enable
such Holder to use the Prospectus forming a part thereof for offers and resales
of Registrable Securities until such Holder has returned a completed and signed
Notice and Questionnaire to the Company.

 

(iii)          The term “Electing Holder” shall mean
any Holder of Registrable Securities that has returned a completed and signed
Notice and Questionnaire to the Company in accordance with Section 3(a)(i) or
3(a)(ii) hereof.

 

(b)           The Company shall furnish to each
Electing Holder, prior to the Effective Time, a copy of the Shelf Registration
Statement initially filed with the Commission, and shall furnish to such
Holders, prior to the filing thereof with the Commission, copies of each
amendment thereto and each amendment or supplement, if any, to the Prospectus
included therein, and shall use its reasonable best efforts to reflect in each
such document, at the Effective Time or when so filed with the Commission, as
the case may be, such comments as such Holders and their respective counsel
reasonably may propose.  The Company may
furnish any document to any Holder pursuant to this Section 3(b) by furnishing
the document to the Holder’s e-mail address indicated on the Notice and
Questionnaire.

 

6

 

(c)           The
Company shall promptly take such action as may be necessary so that
(i) subject to Section 2(c), each of the Shelf Registration Statement
and any amendment thereto and the Prospectus forming a part thereof and any
amendment or supplement thereto (and each report or other document incorporated
therein by reference in each case) complies in all material respects with the
Securities Act and the Exchange Act and the respective rules and regulations
thereunder, (ii) each of the Shelf Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) subject to
Section 2(c), each of the Prospectus forming a part of the Shelf Registration
Statement, and any amendment or supplement to such Prospectus, does not at any
time during the Effectiveness Period include an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

 

(d)           The Company shall promptly
advise each Electing Holder, and shall confirm such advice in writing if
so requested by any such Electing Holder:

 

(i)            when a Shelf Registration Statement
and any amendment thereto has been filed with the Commission and when a Shelf
Registration Statement or any post-effective amendment thereto has become
effective, in each case by making a public announcement thereof by release made
to Reuters Economic Services and Bloomberg Business News;

 

(ii)           of any request by the Commission for
amendments or supplements to the Shelf Registration Statement or the Prospectus
included therein or for additional information;

 

(iii)          of the issuance by the Commission of
any stop order suspending the effectiveness of the Shelf Registration Statement
or the initiation of any proceedings for such purpose;

 

(iv)          of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
securities included in the Shelf Registration Statement for sale in any
jurisdiction or the initiation of any proceeding for such purpose; and

 

(v)           of the happening of any event or the
existence of any state of facts that requires the making of any changes in the
Shelf Registration Statement or the Prospectus included therein so that, as of
such date, such Shelf Registration Statement and Prospectus do not contain an
untrue statement of a material fact and do not omit to state a material fact
required to be stated therein or necessary to make the statements therein (in
the case of the Prospectus, in light of the circumstances under which they were
made) not misleading (which advice shall be accompanied by an instruction to

 

7

 

such Holders to suspend the use of the Prospectus
until the requisite changes have been made).

 

The Company may
furnish any notice to any Electing Holder pursuant to this Section 3(d) by
furnishing the notice to such Holder’s e-mail address indicated on the Notice
and Questionnaire.

 

(e)           The Company shall use its reasonable
best efforts to prevent the issuance, and if issued to obtain the withdrawal at
the earliest possible time, of any order suspending the effectiveness of the
Shelf Registration Statement.

 

(f)            The Company shall furnish to each
Electing Holder, without charge, at least one copy of the Shelf Registration
Statement (excluding materials incorporated therein by reference) and all
post-effective amendments thereto, including financial statements and schedules
(other than financial statements and schedules and other materials incorporated
by reference), and, if such Electing Holder so requests in writing, all
reports, other documents and exhibits that are filed with or incorporated by
reference in the Shelf Registration Statement.

 

(g)           The Company shall, during the
Effectiveness Period, deliver to each Electing Holder, without charge, as many
copies of the Prospectus (including each preliminary Prospectus) included in
the Shelf Registration Statement and any amendment or supplement thereto as
such Electing Holder may reasonably request; and the Company consents (except
during the periods specified in Section 2(c) above or during the continuance of
any event described in Section 3(d)(v) above) to the use of the Prospectus and
any amendment or supplement thereto by each of the Electing Holders in
connection with the offering and sale of the Registrable Securities covered by
the Prospectus and any amendment or supplement thereto during the Effectiveness
Period.

 

(h)           Prior to any offering of Registrable
Securities pursuant to the Shelf Registration Statement, the Company shall (i)
register or qualify or cooperate with the Electing Holders and their respective
counsel in connection with the registration or qualification of such
Registrable Securities for offer and sale under the securities or “blue sky”
laws of such jurisdictions within the United States as any Electing Holder may
reasonably request, (ii) keep such registrations or qualifications in effect
and comply with such laws so as to permit the continuance of offers and sales
in such jurisdictions for so long as may be necessary to enable any Electing
Holder or underwriter, if any, to complete its distribution of Registrable
Securities pursuant to the Shelf Registration Statement, and (iii) take any and
all other actions necessary or advisable to enable the  disposition in such jurisdictions of such
Registrable Securities; provided, however, that in no event
shall the Company be obligated to (A) qualify as a foreign corporation or as a
dealer in securities in any jurisdiction where it would not otherwise be
required to so qualify but for this Section 3(h) or (B) file any general
consent to service of process or become subject to taxation in any jurisdiction
where it is not as of the date hereof so subject.

 

8

 

(i)            Unless any Registrable Securities
shall be in book-entry only form, the Company shall cooperate with the Electing
Holders to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold pursuant to the Shelf
Registration Statement, which certificates, if so required by any securities
exchange upon which any Registrable Securities are listed, shall be penned,
lithographed or engraved, or produced by any combination of such methods, on
steel engraved borders, and which certificates, upon certification by the
applicable Electing Holder of satisfaction of the prospectus delivery
requirements of the Securities Act in connection with transfers of the
Securities evidenced by such certificates, shall be free of any restrictive
legends and in such permitted denominations and registered in such names as
Electing Holders may request in connection with the sale of Registrable
Securities pursuant to the Shelf Registration Statement.

 

(j)            Upon the occurrence of any fact or
event contemplated by paragraph 3(d)(v) above, the Company shall promptly
prepare a post-effective amendment to any Shelf Registration Statement or an
amendment or supplement to the related Prospectus or file any other required
document so that, as thereafter delivered to purchasers of the Registrable
Securities included therein, the Prospectus will not include an untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.  If the
Company notifies the Electing Holders of the occurrence of any fact or event
contemplated by paragraph 3(d)(v) above, the Electing Holder shall suspend the
use of the Prospectus until the requisite changes to the Prospectus have been
made.

 

(k)           Not later than the Effective Time of
the Shelf Registration Statement, the Company shall provide a CUSIP number for
the Registrable Securities that are debt securities.

 

(l)            The Company shall use its reasonable
best efforts to comply with all applicable Rules and Regulations, and to make
generally available to its securityholders as soon as practicable, but in any
event not later than eighteen months after (i) the effective date (as defined
in Rule 158(c) under the Securities Act) of the Shelf Registration Statement,
(ii) the effective date of each post-effective amendment to the Shelf
Registration Statement, and (iii) the date of each filing by the Company with
the Commission of an Annual Report on Form 10-K that is incorporated by
reference in the Shelf Registration Statement, an earning statement of the
Company and its subsidiaries complying with Section 11(a) of the
Securities Act and the rules and regulations of the Commission thereunder
(including, at the option of the Company, Rule 158).

 

(m)          Not later than the Effective Time of
the Shelf Registration Statement, the Company shall cause the Indenture to be
qualified under the Trust Indenture Act; in connection with such qualification,
the Company shall cooperate with the Trustee under the Indenture and the
Holders (as defined in the Indenture) to effect such changes to the Indenture
as may be required for such Indenture to be so qualified in accordance with the
terms of the Trust Indenture Act; and the Company shall execute, and shall use
all reasonable efforts to cause the Trustee to execute, all documents that may
be required to effect such changes and all other forms and documents required
to be filed with the Commission to enable such Indenture to be

 

9

 

so qualified in a timely manner. 
In the event that any such amendment or modification referred to in this
Section 3(m) involves the appointment of a new trustee under the
Indenture, the Company shall appoint a new trustee thereunder pursuant to the
applicable provisions of the Indenture.

 

(n)           In the event of an underwritten
offering conducted pursuant to Section 6 hereof, the Company shall, if
requested, promptly include or incorporate in a Prospectus supplement or
post-effective amendment to the Shelf Registration Statement such information
as the Managing Underwriters reasonably agree should be included therein and to
which the Company does not reasonably object and shall make all required
filings of such Prospectus supplement or post-effective amendment as soon as
practicable after it is notified of the matters to be included or incorporated
in such Prospectus supplement or post-effective amendment.

 

(o)           The Company shall take all other
appropriate action (including entering into an underwriting agreement in
customary form in the event of an underwritten offering conducted pursuant to
Section 6 hereof) in order to expedite and facilitate the registration and
disposition of the Registrable Securities, and in connection therewith, if an
underwriting agreement is entered into, cause the same to contain
indemnification provisions and procedures substantially identical to those set
forth in Section 5 hereof with respect to all parties to be indemnified
pursuant to Section 5 hereof.

 

(p)           The
Company shall:

 

(i)(A)  upon receipt of an executed confidentiality
agreement from the applicable party satisfactory to the Company, make
reasonably available for inspection by the Electing Holders, any underwriter
participating in any disposition pursuant to the Shelf Registration Statement,
and any attorney, accountant or other agent retained by such Electing Holders
or any such underwriter all relevant financial and other records, pertinent
corporate documents and properties of the Company and its subsidiaries, and (B)
cause the Company’s officers, directors and employees to supply all information
reasonably requested by such Electing Holders or any such underwriter,
attorney, accountant or agent in connection with the Shelf Registration
Statement, in each case, as is customary for similar due diligence
examinations;  provided however that, if
the foregoing inspection and information gathering would otherwise disrupt the
Company’s conduct of its business, such inspection and information gathering
shall, to the greatest extent possible, be coordinated on behalf of the
Electing Holders and the other parties entitled thereto by one counsel
designated by and on behalf of the Electing Holders and other parties;

 

(ii)           in connection with any underwritten
offering conducted pursuant to Section 6 hereof, make such representations
and warranties to the Managing Underwriters, in form, substance and scope as
are customarily made by issuers to underwriters in primary underwritten
offerings of equity and convertible debt securities

 

10

 

and covering matters including, but not limited to,
those set forth in the Purchase Agreement;

 

(iii)          in connection with any underwritten
offering conducted pursuant to Section 6 hereof, obtain opinions of
counsel to the Company (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the Managing Underwriters)
addressed to the underwriters, covering such matters as are customarily covered
in opinions requested in primary underwritten offerings of equity and
convertible debt securities (it being agreed that the matters to be covered by
such opinions shall include, without limitation, as of the date of the opinion
and as of the Effective Time of the Shelf Registration Statement or most recent
post-effective amendment thereto, as the case may be, the absence from the
Shelf Registration Statement and the Prospectus, including the documents incorporated
by reference therein, of an untrue statement of a material fact or the omission
of a material fact required to be stated therein or necessary to make the
statements therein not misleading);

 

(iv)          in connection with any underwritten
offering conducted pursuant to Section 6 hereof, obtain “cold comfort”
letters and updates thereof from the independent public accountants of the
Company (and, if necessary, from the independent public accountants of any
subsidiary of the Company or of any business acquired by the Company for which
financial statements and financial data are, or are required to be, included in
the Shelf Registration Statement), addressed to the underwriters, in customary
form and covering matters of the type customarily covered in “cold comfort”
letters in connection with primary underwritten offerings;

 

(v)           in connection with any underwritten
offering conducted pursuant to Section 6 hereof, deliver such documents
and certificates as may be reasonably requested by the Managing Underwriters,
if any, including, without limitation, certificates to evidence compliance with
Section 3(j) hereof and with any conditions contained in the underwriting
agreement or other agreements entered into by the Company.

 

(q)           The Company will use its reasonable
best efforts to cause the Common Stock issuable upon conversion of the
Securities to be listed for quotation on the Nasdaq National Market System or
other stock exchange or trading system on which the Common Stock primarily
trades on or prior to the Effective Time of the Shelf Registration Statement
hereunder.

 

(r)            In the event that any broker-dealer
registered under the Exchange Act shall be an “affiliate” (as defined in
Rule 2720(b)(1) of the NASD Rules (or any successor provision thereto)) of
the Company or has a “conflict of interest” (as defined in Rule 2720(b)(7)
of the NASD Rules (or any successor provision thereto)) and such broker-dealer
shall underwrite, participate as a member of an underwriting syndicate or
selling group or assist in the distribution of any Registrable Securities
covered by the Shelf Registration Statement, whether as a Holder of such
Registrable Securities or as an underwriter, a placement or sales agent or a

 

11

 

broker or dealer in respect thereof, or otherwise, the Company shall
assist such broker-dealer in complying with the requirements of the NASD Rules,
including, without limitation, by (A) if required by the NASD Rules, engaging a
“qualified independent underwriter” (as defined in Rule 2720(b)(15) of the
NASD Rules (or any successor provision thereto)) to participate in the
preparation of the registration statement relating to such Registrable
Securities, to exercise usual standards of due diligence in respect thereto and
to recommend the public offering price of such Registrable Securities, (B)
indemnifying such qualified independent underwriter to the extent of the
indemnification of underwriters provided in Section 5 hereof, and (C) providing
such information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the NASD Rules.

 

(s)           The Company shall use its reasonable
best efforts to take all other steps necessary to effect the registration,
offering and sale of the Registrable Securities covered by the Shelf
Registration Statement contemplated hereby.

 

4.             Registration Expenses.  Except as otherwise provided in Section 3,
the Company shall bear all fees and expenses incurred in connection with
performance of its obligations under Sections 2, 3 and 6 hereof and shall bear
or reimburse the Electing Holders for the reasonable fees and disbursements of
a single counsel selected by a plurality of all Electing Holders who own an
aggregate of not less than 25% of the Registrable Securities covered by the
Shelf Registration Statement to act as counsel therefor in connection
therewith.  Each Electing Holder shall
pay all underwriting discounts and commissions and transfer taxes, if any, relating
to the sale or disposition of such Electing Holder’s Registrable Securities
pursuant to the Shelf Registration Statement.

 

5.             Indemnification and Contribution.

 

(a)           Indemnification by the Company. Upon the
registration of the Registrable Securities pursuant to Section 2 hereof, the
Company shall  indemnify and hold harmless each Electing Holder and each
underwriter, dealer or selling agent, if any, which facilitates the disposition
of Registrable Securities, and each of their respective officers and directors
and each person who controls such Electing Holder, underwriter, dealer or
selling agent within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act (each such person being sometimes referred to as an
“Indemnified Person”) against any losses, claims, damages or liabilities, joint
or several, to which such Indemnified Person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in
any Shelf Registration Statement under which such Registrable Securities are to
be registered under the Securities Act, or any Prospectus contained therein or
furnished by the Company to any Indemnified Person relating to such Registrable
Securities, or any amendment or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and the Company hereby agrees to reimburse such Indemnified Person
for any legal or other expenses reasonably incurred by it in connection with
investigating or defending any such action or claim as such

 

12

 

expenses are incurred; provided, however, that the Company
shall not be liable to any such Indemnified Person in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such Shelf Registration Statement or Prospectus, or amendment
or supplement, in reliance upon and in conformity with written information
furnished to the Company by such Indemnified Person expressly for use therein.

 

(b)           Indemnification by the Electing Holders and any
Agents and Underwriters. 
Each Electing Holder agrees, as a consequence of the inclusion of any of
such Electing Holder’s Registrable Securities in such Shelf Registration
Statement, and each underwriter, dealer or selling agent, if any, which
facilitates the disposition of Registrable Securities shall agree, as a
consequence of facilitating such disposition of Registrable Securities,
severally and not jointly, to (i) indemnify and hold harmless the Company, its
directors, officers who sign any Shelf Registration Statement and each person,
if any, who controls the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, against any losses, claims,
damages or liabilities to which the Company or such other persons may become
subject, under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact
contained in such Shelf Registration Statement or Prospectus, or any amendment
or supplement, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such Electing
Holder, underwriter, dealer or selling agent expressly for use therein, and
(ii) reimburse the Company for any legal or other expenses reasonably
incurred by the Company in connection with investigating or defending any such
action or claim as such expenses are incurred.

 

(c)           Notices of Claims, Etc.  Promptly after receipt by an indemnified
party under subsection (a) or (b) above of notice of the commencement of any
action, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party under this Section 5, notify such
indemnifying party in writing of the commencement thereof; but the omission so
to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party otherwise than under the indemnification
provisions of or contemplated by subsection (a) or (b) above.  In case any such action shall be brought
against any indemnified party and it shall notify an indemnifying party of the
commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party with
respect to such action), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, such
indemnifying party shall not be liable to such indemnified party under this
Section 5 for any legal expenses of other counsel or any other expenses, in
each case subsequently incurred by such indemnified party, in connection with
the defense thereof other

 

13

 

than reasonable costs of investigation. No indemnifying party shall,
without the written consent of the indemnified party, effect the settlement or
compromise of, or consent to the entry of any judgment with respect to, any
pending or threatened action or claim in respect of which indemnification or
contribution may be sought hereunder (whether or not the indemnified party is
an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (i) includes an unconditional release of the indemnified
party from all liability arising out of such action or claim and (ii) does not
include a statement as to, or an admission of, fault, culpability or a failure
to act, by or on behalf of any indemnified party.

 

(d)           Contribution.  If the indemnification provided for in this Section 5 is
unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities
(or actions in respect thereof) in such proportion as is appropriate to reflect
the relative fault of the indemnifying party and the indemnified party in
connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities (or actions in respect thereof), as well as any
other relevant equitable considerations. 
The relative fault of such indemnifying party and indemnified party
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by such indemnifying
party or by such indemnified party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.  The parties
hereto agree that it would not be just and equitable if contribution pursuant
to this Section 5(d) were determined by pro rata allocation (even if the
Electing Holders or any underwriters, dealers or selling agents or all of them
were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to in this Section 5(d).  The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to above shall
be deemed to include any legal or other fees or expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The obligations of the Electing
Holders and any underwriters, dealers or selling agents in this Section 5(d) to
contribute shall be several in proportion to the percentage of principal amount
of Registrable Securities registered or underwritten, as the case may be, by
them and not joint.

 

(e)           Notwithstanding any other provision
of this Section 5, in no event will any (i) Electing Holder be required to
undertake liability to any person under this Section 5 for any amounts in
excess of the dollar amount of the proceeds to be received by such Holder from
the sale of such Holder’s Registrable Securities (after deducting any fees,
discounts and commissions applicable thereto) pursuant to any Shelf
Registration Statement under which such Registrable Securities are to be
registered under the Securities Act and (ii) underwriter, dealer or
selling agent be required to undertake liability to any person hereunder for
any amounts in excess of the discount, commission or other compensation payable
to such

 

14

 

underwriter, dealer or selling agent or with respect to the Registrable
Securities underwritten by it and distributed to the public.

 

(f)            The obligations of the Company under
this Section 5 shall be in addition to any liability which the Company may
otherwise have to any Indemnified Person and the obligations of any Indemnified
Person under this Section 5 shall be in addition to any liability which
such Indemnified Person may otherwise have to the Company.  The remedies provided in this Section 5
are not exclusive and shall not limit any rights or remedies which may
otherwise be available to an indemnified party at law or in equity.

 

6.             Underwritten Offering.  Any Holder of Registrable Securities who
desires to do so may sell Registrable Securities (in whole or in part) in an
underwritten offering; provided that  (i) the Electing Holders of at least 33-1/3% in aggregate
principal amount of the Registrable Securities then covered by the Shelf
Registration Statement shall request such an offering and (ii) at least such
aggregate principal amount of such Registrable Securities shall be included in
such offering; and provided further that the Company shall not
be obligated to cooperate with more than one underwritten offering during the
Effectiveness Period.  Upon receipt of
such a request, the Company shall provide all Electing Holders of Registrable
Securities written notice of the request, which notice shall inform such
Electing Holders that they have the opportunity to participate in the offering.
The Company may furnish any notice to any Holder pursuant to this Section 6 by
furnishing the notice to the Holder’s e-mail address indicated on the Notice
and Questionnaire. In any such underwritten offering, the investment banker or
bankers and manager or managers that will administer the offering will be
selected by, and the underwriting arrangements with respect thereto (including
the size of the offering) will be approved by, the holders of a majority of the
Registrable Securities to be included in such offering; provided, however,
that such investment bankers and managers and underwriting arrangements must be
satisfactory to the Company.  No Holder
may participate in any underwritten offering contemplated hereby unless (a)
such Holder agrees to sell such Holder’s Registrable Securities to be included
in the underwritten offering in accordance with any approved underwriting
arrangements, (b) such Holder completes and executes all reasonable
questionnaires, powers of attorney, indemnities, underwriting agreements,
lock-up letters and other documents required under the terms of such approved
underwriting arrangements, and (c) if such Holder is not then an Electing Holder,
such Holder returns a completed and signed Notice and Questionnaire to the
Company in accordance with Section 3(a)(ii) hereof within a reasonable amount
of time before such underwritten offering. 
The Holders participating in any underwritten offering shall be
responsible for any underwriting discounts and commissions and fees and,
subject to Section 4 hereof, expenses of their own counsel.  The Company shall pay all expenses
customarily borne by issuers in an underwritten offering, including but not
limited to filing fees, the fees and disbursements of its counsel and
independent public accountants and any printing expenses incurred in connection
with such underwritten offering. 
Notwithstanding the foregoing or the provisions of Section 3(n) hereof,
upon receipt of a request from the Managing Underwriter or a representative of
holders of a majority of the Registrable Securities to be included in an
underwritten offering to prepare and file an amendment or supplement to the
Shelf Registration Statement and Prospectus in connection with an underwritten
offering, the Company may delay the filing of any such amendment or supplement
for up to 90 days if the

 

15

 

Board of Directors of the Company shall have determined in good faith
that the Company has a bona fide business reason for such delay.

 

7.                                      Liquidated
Damages.

 

(a)           Pursuant
to Section 2(a) hereof, the Company may, upon written notice to all the
Electing Holders, postpone having the Shelf Registration Statement declared
effective for a reasonable period not to exceed 90 days if the Company
possesses material non-public information, the disclosure of which would have a
material adverse effect on the Company and its subsidiaries taken as a whole.  Notwithstanding any such postponement, if
(i) on or prior to the 90th day following the Closing Date, a Shelf
Registration Statement has not been filed with the Commission or (ii) on or
prior to the 180th day following the Closing Date, such Shelf Registration Statement
is not declared effective by the Commission (each, a “Registration Default”),
the Company shall be required to pay liquidated damages (“Liquidated Damages”),
from and including the day following such Registration Default until, but
excluding the date on which, such Shelf Registration Statement is either so
filed or so filed and subsequently declared effective, as applicable, at a rate
per annum equal to an additional one-quarter of one percent (0.25%) of the
principal amount of Registrable Securities, to and including the 90th day
following such Registration Default and one-half of one percent (0.5%) thereof
from and after the 91st day following such Registration Default.

 

(b)           In the event that the Shelf
Registration Statement ceases to be effective (or the Holders of Registrable
Securities, subject to Section 2(b)(ii) and 3(a)(i) and (ii), are otherwise
prevented or restricted by the Company from effecting sales pursuant thereto)
(an “Effective Failure”) for more than 30 days, whether or not consecutive, in
any 90-day period, or for more than 90 days, whether or not consecutive, during
any 12-month period, then the Company shall pay Liquidated Damages at a rate
per annum equal to an additional one-half of one percent (0.5%) of the
principal amount of Registrable Securities from the 31st day upon which an
Effective Failure occurs in any 90-day period or the 91st day upon which an
Effective Failure occurs in any 12-month period, as the case may be, until the
earlier of (i) the time the Shelf Registration Statement again becomes
effective or the Holders of Registrable Securities are again able to make sales
under the Shelf Registration Statement or (ii) the time the Effectiveness
Period expires. For the purpose of determining an Effective Failure, days on
which the Company has been obligated to pay Liquidated Damages in accordance
with the foregoing in respect of a prior Effective Failure within the
applicable 90-day or 12-month period, as the case may be, shall not be
included.

 

(c)           In
the event the Company fails to file a post-effective amendment to the Shelf
Registration Statement, or the post-effective amendment is not declared
effective, to the extent required by Section 3, and the effect of such failure
to file or to become effective is to cause the Shelf Registration Statement (x)
to fail to become effective in a timely fashion as provided in Section 7(a), or
(y) to cease to be effective (or the Holders to be prevented or restricted from
effecting sales pursuant thereto) as provided in Section 7(b), then the Company
shall pay Liquidated Damages on the same basis as provided in Section 7(a) or
7(b), as applicable.

 

16

 

(d)           Any
amounts to be paid as Liquidated Damages pursuant to paragraphs (a), (b) or (c)
of this Section 7 shall be paid semi-annually in arrears, with the first
semi-annual payment due on the first Interest Payment Date (as defined in the
Indenture), as applicable, following (i) in the case of said paragraphs
(a) and (c), the date of such Registration Default or (ii) in the case of
said paragraph (b), the 31st day upon which an Effective Failure occurs in any
90-day period or the 91st day upon which an Effective Failure occurs in any
12-month period, as the case may be. 
Such Liquidated Damages will accrue (1) in respect of the
Registrable Securities at the rates set forth in paragraphs (a), (b) or (c) of
this Section 7, as applicable, on the principal amount of the Registrable
Securities and (2) in respect of the Common Stock issued upon conversion
of the Securities that remains a Registrable Security, at the rates set forth
in paragraphs (a), (b) or (c) of this Section 7, as applicable, applied to the
Conversion Price (as defined in the Indenture) at that time.

 

(e)           The
Liquidated Damages as set forth in this Section 7 shall be the exclusive
monetary remedy available to the Holders of Registrable Securities for such
Registration Default or Effective Failure. In no event shall the Company be
required to pay Liquidated Damages in excess of the applicable maximum rate per
annum of one-half of one percent (0.5%) set forth above, regardless of whether
one or multiple Registration Defaults exist. 
Notwithstanding the foregoing, the parties agree that the Purchasers and
Holders may pursue specific performance of this Agreement under Section 8(b).

 

8.             Miscellaneous.

 

(a)           Other Registration Rights.  The Company may grant or may have granted
registration rights that would permit any person that is a third party the
right to piggy-back on any Shelf Registration Statement, provided that if the
Managing Underwriter of any underwritten offering conducted pursuant to
Section 6 hereof notifies the Company and the Electing Holders that the
total amount of securities which the Electing Holders and the holders of such
piggy-back rights intend to include in any Shelf Registration Statement is so
large as to materially threaten the success of such offering (including the
price at which such securities can be sold), then the amount, number or kind of
securities to be offered for the account of holders of such piggy-back rights
will be reduced to the extent necessary to reduce the total amount of
securities to be included in such offering to the amount, number and kind
recommended by the Managing Underwriter prior to any reduction in the amount of
Registrable Securities to be included in such Shelf Registration Statement.

 

(b)           Specific Performance.  The parties hereto acknowledge that there
would be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Purchasers and the Holders from time to time
may be irreparably harmed by any such failure, and accordingly agree that the
Purchasers and such Holders, in addition to any other remedy to which they may
be entitled at law or in equity and without limiting the remedies available to
the Electing Holders under Section 7 hereof, shall be entitled to compel
specific performance of the obligations of the Company under this Registration
Rights Agreement in

 

17

 

accordance with the terms and conditions of this Registration Rights
Agreement, in any court of the United States or any State thereof having
jurisdiction.

 

(c)           Amendments and Waivers.  This Agreement, including this Section 8(c),
may be amended, and waivers or consents to departures from the provisions
hereof may be given, only by a written instrument duly executed by the Company
and the Holders of a majority in aggregate principal amount of Registrable
Securities then outstanding.  Each
Holder of Registrable Securities outstanding at the time of any such amendment,
waiver or consent or thereafter shall be bound by any amendment, waiver or
consent effected pursuant to this Section 8(c), whether or not any notice,
writing or marking indicating such amendment, waiver or consent appears on the
Registrable Securities or is delivered to such Holder.

 

(d)           Notices. 
Except as otherwise provided herein, all notices and other
communications provided for or permitted hereunder shall be given as provided
in the Indenture.

 

(e)           Parties in Interest.  The parties to this Agreement intend that
all Holders of Registrable Securities shall be entitled to receive the benefits
of this Agreement and that any Electing Holder shall be bound by the terms and
provisions of this Agreement by reason of such election with respect to the
Registrable Securities which are included in a Shelf Registration
Statement.  All the terms and provisions
of this Agreement shall be binding upon, shall inure to the benefit of and
shall be enforceable by the respective successors and assigns of the parties
hereto and any Holder from time to time of the Registrable Securities to the
aforesaid extent.  In the event that any
transferee of any Holder of Registrable Securities shall acquire Registrable
Securities, in any manner, whether by gift, bequest, purchase, operation of law
or otherwise, such transferee shall, without any further writing or action of
any kind, be entitled to receive the benefits of and, if an Electing Holder, be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement to the aforesaid extent.

 

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

 

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

 

(h)           Governing Law.  This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

 

(i)            Severability.  In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstances, is held invalid,
illegal or unenforceable in any respect for any reason, the validity, legality
and enforceability of any such provision in

 

18

 

every other respect and of the remaining provisions hereof shall not be
in any way impaired or affected thereby, it being intended that all of the
rights and privileges of the parties hereto shall be enforceable to the fullest
extent permitted by law.

 

(j)            Survival. 
The respective indemnities, agreements, representations, warranties and
other provisions set forth in this Agreement or made pursuant hereto shall
remain in full force and effect, regardless of any investigation (or any
statement as to the results thereof) made by or on behalf of any Electing
Holder, any director, officer or partner of such Holder, any agent or
underwriter, any director, officer or partner of such agent or underwriter, or
any controlling person of any of the foregoing, and shall survive the transfer
and registration of the Registrable Securities of such Holder.

 

19

 

Please confirm
that the foregoing correctly sets forth the agreement between the Company and
you.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Amylin
  Pharmaceuticals, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Accepted as of the date hereof:

  	
   

  
	
   

  	
   

  
	
  Goldman, Sachs & Co.

  Morgan Stanley & Co. Incorporated

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  (Goldman, Sachs &
  Co.)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  On behalf of
  each of the Purchasers.

  	
   

  	
   

  

 

20

 

Appendix A

 

AMYLIN PHARMACEUTICALS, INC.

 

NOTICE OF REGISTRATION STATEMENT

 

AND

 

SELLING SECURITYHOLDER QUESTIONNAIRE

 

                   ,
2003

 

Amylin Pharmaceuticals, Inc.

 

 

INSTRUCTION
TO DTC PARTICIPANTS

 

 

(Date of Mailing)

 

 

URGENT – IMMEDIATE ATTENTION REQUESTED

 

 

DEADLINE FOR RESPONSE: 
                     

 

 

The Depository Trust Company (“DTC”) has identified you as a DTC
Participant through which beneficial interests in the Amylin Pharmaceuticals, Inc.
(the “Company”) [       %] Convertible
Senior Notes due 2008 (the “Securities”) are held.

 

The Company is in the process of registering the Securities under the
Securities Act of 1933 for resale by the beneficial owners thereof.  In order to have their Securities included
in the registration statement, beneficial owners must complete and return the
enclosed Notice of Registration Statement and Selling Securityholder
Questionnaire.

 

It is important that beneficial
owners of the Securities receive a copy of the enclosed materials as soon as
possible as their rights to
have the Securities included in the registration statement depend upon their
returning the Notice and Questionnaire by
                           .  Please forward a copy of the enclosed documents
to each beneficial owner that holds interests in the Securities through
you.  If you require more copies of the
enclosed materials or have any questions pertaining to this matter, please
contact the Company’s counsel, Cooley Godward LLP, 4401 Eastgate Mall, San
Diego, CA  92121, Attention:  Matthew T. Browne, Esq. ((858) 550-6045).

 

A-1

 

Amylin Pharmaceuticals, Inc. (the “Company”) has filed with the United States
Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3
(the “Shelf Registration Statement”)
for the registration and resale under Rule 415 of the United States Securities
Act of 1933, as amended (the “Securities Act”), of the Company’s    %
Convertible Senior Notes due June 30, 2008 (the “Securities”) and the shares of common stock,
par value $0.001 per share (the “Common Stock”), issuable upon conversion thereof, in
accordance with the Registration Rights Agreement, dated as of the date of
original issuance of the Securities (the “Registration Rights Agreement”), between the Company
and the purchasers named therein.  A
copy of the Registration Rights Agreement is attached hereto.  All capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Registration Rights
Agreement.

 

In order to have Registrable Securities included in
the Shelf Registration Statement (or a supplement or amendment thereto), this
Notice of Registration Statement and Selling Securityholder Questionnaire (“Notice and Questionnaire”)
must be completed, executed and delivered to the Company at the address set
forth herein for receipt ON OR BEFORE
               ,
2003.  Beneficial owners of Registrable
Securities who do not complete, execute and return this Notice and
Questionnaire by such date (i) will not be named as selling
securityholders in the Shelf Registration Statement and (ii) may not use the
Prospectus forming a part thereof for resales of Registrable Securities.

 

Certain legal consequences arise from being named as a
selling securityholder in the Shelf Registration Statement and related
Prospectus.  Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.

 

The term “Registrable Securities” is defined in the
Registration Rights Agreement to mean all or any portion of the Securities issued
from time to time under the Indenture in registered form and the shares of
Common Stock issuable upon conversion, repurchase or redemption of such
Securities; provided,
however, that a security ceases to be a Registrable Security when it
is no longer a Restricted Security.

 

The term “Restricted Security” is defined in the
Registration Rights Agreement to mean any Security or share of Common Stock
issuable upon conversion thereof except any such Security or share of Common
Stock which (i) has been effectively registered under the Securities Act
and sold in a manner contemplated by the Shelf Registration Statement,
(ii) has been transferred in compliance with Rule 144 under the
Securities Act (or any successor provision thereto) or is transferable pursuant
to paragraph (k) of such Rule 144 (or any successor provision thereto), or
(iii) has otherwise been transferred and a new Security or share of Common
Stock not subject to transfer restrictions under the Securities Act has been
delivered by or on behalf of the Company in accordance with the Indenture.

 

A-2

 

ELECTION

 

The undersigned holder (the “Selling Securityholder”) of Registrable
Securities hereby elects to include in the Shelf Registration Statement the
Registrable Securities beneficially owned by it and listed below in Item
(3).  The undersigned, by signing and
returning this Notice and Questionnaire, agrees to be bound with respect to
such Registrable Securities by the terms and conditions of this Notice and
Questionnaire and the Registration Rights Agreement, including, without
limitation, Section 5 of the Registration Rights Agreement, as if the
undersigned Selling Securityholder were an original party thereto.

 

Upon any sale of Registrable Securities pursuant to
the Shelf Registration Statement, the Selling Securityholder will be required
to deliver to the Company and the Trustee the Notice of Transfer (completed and
signed) set forth in Exhibit 1 to this Notice and Questionnaire.

 

The Selling Securityholder hereby provides the
following information to the Company and represents and warrants that such
information is accurate and complete:

 

A-3

 

QUESTIONNAIRE

 

(1)  (a)              Full legal name of Selling Securityholder:

 

	
                                                                                                                                                                                                         
  

  

 

(b)         Full legal name of
registered holder (if not the same as in (a) above) of Registrable Securities
listed in Item (3) below:

 

	
                                                                                                                                                                             
                              

  

 

(c)          Full legal name of DTC
participant (if applicable and if not the same as (b) above) through which
Registrable Securities listed in Item (3) below are held:

 

	
                                                                                                                                                                                                          

  

 

(d)         State whether the Selling
Securityholder is a publicly-held entity or a subsidiary of a publicly-held
entity (i.e. an entity that has a class of securities registered under the
Securities Exchange Act of 1934, as amended):

 

Yes  o  No  o

 

If a subsidiary, please identify the publicly-held
parent entity:

____________________________

 

(e)          State whether the
Selling Securityholder is an investment company, or a subsidiary of an
investment company, registered under the Investment Company Act of 1940:

 

Yes  o  No  o

 

If a subsidiary, please identify the investment
company parent
entity:____________________                                        

 

 

(f)          If you answered “No” to questions (d)
and (e), state the number of natural persons who have or share
voting or investment control over the Registrable Securities: ________________.

 

If your answer is 5 or fewer, please identify those
natural persons:

 

	
                                                                                                                                                                                                         
  

  

 

	
                                                                                                                                                                                                          

  

 

	
                                                                                 
                                                                                                                          

  

 

Please note that the SEC requires that these natural persons
be named in the prospectus.

 

(2)                                  Address
for notices to Selling Securityholder:

 

	
                                                                                                                                                                                                         
  

  

 

	
                                                                                                                                                                                                          

  

 

	
                                                                                                  
                                                                                                         

  

 

	
  Telephone:

  	
  ______________________________________________________________________________________

  
	
  E-mail:

  	
  ______________________________________________________________________________________

  
	
  Fax:

  	
  ______________________________________________________________________________________

  

 

A-4

 

	
  Contact Person:

  	
  _____________________________________________________________________________________

  

 

(3)                                  Beneficial
ownership of Securities:

 

Except
as set forth below in this Item (3), the undersigned Selling Securityholder
does not beneficially own any Securities or shares of Common Stock issued upon
conversion, repurchase or redemption of any Securities.

 

(a)          Principal amount of
Registrable Securities (as defined in the Registration Rights Agreement)
beneficially
owned:____________________________________________________________________________________________

 

CUSIP No(s). of such Registrable
Securities:______________________________________________________________

 

Number of shares of Common Stock (if any) issued upon
conversion, repurchase or redemption of Registrable
Securities:__________________________________________________________________________________________

 

 

(b)         Principal amount of
Securities other than Registrable Securities beneficially owned:

 

	
                                                                                                          
                                                                                                 

  

 

CUSIP No(s). of such other Securities:
____________________________________________________________________

 

Number of shares of Common Stock (if any) issued upon
conversion of such other Securities:

 

	
                                                                                                                                                                                                         
  

  

 

(c)          Principal amount of
Registrable Securities which the undersigned wishes to be included in the Shelf
Registration Statement:
____________________________________________________________________________________________________

 

CUSIP No(s). of such Registrable Securities to be
included in the Shelf Registration Statement:

 

	
                                                                                                                                                                                                    
       

  

 

Number of shares of Common Stock (if any) issued upon
conversion of Registrable Securities which are to be included in the Shelf
Registration Statement:
____________________________________________________________________________

 

	
                  
                                                                                                                                                                                         

  

 

 

(4)           Beneficial ownership
of other securities of the Company:

 

Except
as set forth below in this Item (4), the undersigned Selling Securityholder is
not the beneficial or registered owner of any shares of Common Stock or any
other securities of the Company, other than the Securities and shares of Common
Stock listed above in Item (3).

 

State any exceptions here:

 

 

 

(5)                                  Relationships
with the Company:

 

Except
as set forth below, neither the Selling Securityholder nor any of its
affiliates, officers, directors or principal equity holders (5% or more) has
held any position or office or has had any other material relationship with the
Company (or its predecessors or affiliates) during the past three years.

 

State any exceptions here:

 

 

 

(6)                                  Plan
of Distribution:

 

Except
as set forth below, the undersigned Selling Securityholder intends to
distribute the Registrable Securities listed above in Item (3) only as follows
(if at all):  Such Registrable
Securities may be sold from time to time directly by the undersigned Selling
Securityholder or,

 

A-5

 

alternatively,
through underwriters, broker-dealers or agents.  If the Registrable Securities are sold through underwriters or
broker-dealers, the Selling Securityholder will be responsible for underwriting
discounts or commissions.  Such Registrable
Securities may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at varying prices determined at
the time of sale, or at negotiated prices. 
Such sales may be effected in transactions (which may involve crosses or
block transactions) (i) on any national securities exchange or quotation
service on which the Registrable Securities may be listed or quoted at the time
of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise
than on such exchanges or services or in the over-the-counter market, or (iv)
through the writing of options.  In
connection with sales of the Registrable Securities or otherwise, the Selling
Securityholder may enter into hedging transactions with broker-dealers, which
may in turn engage in short sales of the Registrable Securities in the course
of hedging the positions they assume. 
The Selling Securityholder may also sell Registrable Securities short
and deliver Registrable Securities to close out such short positions, or loan
or pledge Registrable Securities to broker-dealers that in turn may sell such
securities.  The Selling Securityholder
may pledge or grant security interest in some or all of the Registrable
Securities owned by it and, if it defaults in the performance of its secured
obligations, the pledgees or secured parties may offer and sell the Registrable
Securities from time to time pursuant to the prospectus. The Selling
Securityholder also may transfer and donate shares in other circumstances in which
case the transferees, donees, pledgees or other successors in interest will be
the selling security holder for purposes of the prospectus.

 

State any exceptions here:

 

 

Note: 
Underwritten offerings of the Registrable Securities are subject to
limitations set forth in the Registration Rights Agreement.

 

(7)  (a)     State whether the undersigned Selling Securityholder has or will
enter into “hedging transactions.”

 

Yes  o  No  o

 

If yes, you must provide
a complete description of the hedging transactions into which the undersigned
Selling Securityholder has entered or will enter and the purpose of such
hedging transactions, including the extent to which such hedging transactions
remain in place.

 

	
                                                                                                                                                                                                          

  
	
                                                                                                                     
                                                                                      

  
	
                                                                                                                                                                           
                                

  
	
                                                                                                                                                                                                         
  

  

 

Please
note that the SEC may deem short sales of securities covered by a registration
statement prior to the effectiveness of such registration statement as a
violation of Section 5 of the Securities Act.

 

 

(b)         State whether the
undersigned Selling Securityholder has sold any of the Registrable Securities
or shares of common stock of the Company short since the date of original
issuance of the Registrable Securities.

 

 

Yes  o  No  o

 

A-6

 

If yes, you must provide a complete description of the
short sale, including the number of shares of common stock of the Company
involved and whether the short position remains in place.

 

	
                                                                                                              
                                                                                             

  
	
                                                                                                                                                                    
                                       

  
	
                                                                                                                                                                                                         
  

  
	
                
                                                                                                                                                                                           

  

 

(8)  (a)     State whether the undersigned Selling Securityholder is a registered
broker-dealer.

 

Yes  o  No  o

 

(b)         State whether the
undersigned Selling Securityholder received the Registrable Securities as
compensation for underwriting activities and, if so, provide a brief
description of the transaction(s) involved.

 

Yes  o  No  o

 

	
                                                                                                                                                                                                         
  

  
	
                                                                                                                                                                                                          

  

 

The SEC
requires that all Selling Securityholders that are broker-dealers, even if they
did not receive the Registrable Securities as compensation for underwriting
activities, must be named as underwriters in the prospectus for the Registrable
Securities.  Selling Securityholders,
including those named as underwriters, must deliver copies of the prospectus to
purchasers at or prior to the time of any sale of the Registrable Securities.

 

(c)          State whether the
undersigned Selling Securityholder is an affiliate of a registered
broker-dealer and if so, list the name(s) of the broker-dealer affiliate(s).

 

Yes  o  No  o

 

	
                                                                                                                                                                                                         
  

  
	
                                                                                                                                                                                                          

  

 

If the
answer is “Yes,” you must answer question (d) below.

 

(d)         If the undersigned
Selling Securityholder is an affiliate of a registered broker-dealer:

 

(i) Did the undersigned Selling Securityholder
purchase the Registrable Securities in the ordinary course of business?

 

Yes  o  No  o

 

A-7

 

If the answer is “No,” to question (i) state any
exceptions below:

	
                                                                                                                                                                               
  

  
	
                   
                                                                                                                                                              

  

 

(ii) At the time of the
purchase of the Registrable Securities, did the undersigned Selling Securityholder
have any agreements or understandings, directly or indirectly, with any person
to distribute the Registrable Securities?

 

Yes  o  No  o

 

If the answer is “Yes” to
question (ii), state any exceptions below:

	
                                                                                                                                                                               

  
	
                                                                                                                          
                                                      

  

 

 

If the answer is “No” to question (i)
or “Yes” to question (ii), you will be named as an underwriter in the
prospectus relating to the Registrable Securities.

 

By signing below, the Selling Securityholder
acknowledges that it understands its obligation to comply, and agrees that it
will comply, with the prospectus delivery and other provisions of the
Securities Act and the Securities Exchange Act of 1934, as amended, and the
rules and regulations thereunder, particularly Regulation M.

 

In the event that the Selling Securityholder transfers
all or any portion of the Registrable Securities listed in Item (3) above after
the date on which such information is provided to the Company, the Selling
Securityholder agrees to notify the transferee(s) at the time of the transfer
of its rights and obligations under this Notice and Questionnaire and the
Registration Rights Agreement.

 

By signing below, the Selling Securityholder consents
to the disclosure of the information contained herein in its answers to Items
(1) through (8) above and the inclusion of such information in the Shelf
Registration Statement and related Prospectus. 
The Selling Securityholder understands that such information will be
relied upon by the Company in connection with the preparation of the Shelf
Registration Statement and related Prospectus.

 

In accordance with the Selling Securityholder’s
obligation under Section 3(a) of the Registration Rights Agreement to
provide such information as may be required by law for inclusion in the Shelf
Registration Statement, the Selling Securityholder agrees to promptly notify
the Company of any inaccuracies or changes in the information provided herein
which may occur subsequent to the date hereof at any time while the Shelf
Registration Statement remains in effect. 
Except as otherwise provided in the Registration Rights Agreement, all
notices hereunder and pursuant to the Registration Rights Agreement shall be
made in writing, by hand-delivery, first-class mail, or air courier
guaranteeing overnight delivery as follows:

 

(i)    To the
Company:

 

Amylin Pharmaceuticals, Inc.

9373 Towne Centre Drive

San Diego, CA 92121

Attention: Lloyd A. Rowland, Esq., General Counsel

 

A-8

 

(ii)   With a
copy to:

 

Cooley Godward LLP

4401 Eastgate Mall

San Diego, CA  92121-9109

Attention:  Matthew T. Browne, Esq.

 

Once this Notice and Questionnaire is executed by the
Selling Securityholder and received by the Company, the terms of this Notice
and Questionnaire, and the representations and warranties contained herein,
shall be binding on, shall inure to the benefit of and shall be enforceable by
the respective successors, heirs, personal representatives, and assigns of the
Company and the Selling Securityholder (with respect to the Registrable
Securities beneficially owned by such Selling Securityholder and listed in Item
(3) above).  This Agreement shall be
governed in all respects by the laws of the State of New York.

 

A-9

 

IN WITNESS WHEREOF,
the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Selling Securityholder

  
	
   

  	
   

  	
  (Print/type full legal name of beneficial owner of

  Registrable Securities)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
							

 

 

PLEASE RETURN THE
COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE
              ,
2003 TO THE COMPANY AT:

 

Amylin
Pharmaceuticals, Inc.

9373 Towne Centre Drive

San Diego, CA  92121

Attention: Lloyd A. Rowland, Esq., General Counsel

 

WITH A COPY TO:

 

Cooley Godward LLP

4401 Eastgate Mall

San Diego, CA  92121-9109

Attention:  Matthew T. Browne, Esq.

 

A-10

 

Exhibit
1

to Appendix A

 

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

 

Amylin Pharmaceuticals, Inc.

9373 Towne Centre Drive

San Diego, CA  92121

Attn:  Lloyd A. Rowland, Esq., General
Counsel

 

J.P. Morgan Trust Company, National Association

 

Re:                   Amylin
Pharmaceuticals, Inc. (the “Company”)

    2.25%
Convertible Senior Notes due June 30, 2008 (the “Notes”)

 

Dear Sirs:

 

Please be advised that
                              
has transferred $                 
aggregate principal amount of the above-referenced Notes or shares of the
Company’s common stock, issued upon conversion, repurchase or redemption of
Notes, pursuant to an effective Registration Statement on Form S-3 (File
No. 333-                  )
filed by the Company.

 

We hereby certify that the prospectus delivery
requirements, if any, of the Securities Act of 1933, as amended, have been
satisfied with respect to the transfer described above and that the above-named
beneficial owner of the Notes or common stock is named as a selling
securityholder in the Prospectus dated [date], or in amendments or supplements
thereto, and that the aggregate principal amount of the Notes or number of
shares of common stock transferred are [a portion of] the Notes or shares of
common stock listed in such Prospectus as amended or supplemented opposite such
owner’s name.

 

	
  Dated:

  	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized
  Signature)

  

 

A-11

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