Document:

Exhibit
10.80

 

Confirmation of OTC Warrant Transaction

 

	
  Date:

  	
   

  	
  February 14, 2006

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Amgen Inc. (“Counterparty”)

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Morgan Stanley & Co.
  International Limited (“MSIL”)

  

 

Dear Sir / Madam:

 

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

 

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

 

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

 

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

 

General
Terms:

 

	
  Trade Date:

  	
   

  	
  February 14, 2006

  	 

	 
	
   

  	
   

  	
   

  
	 
	
  Warrant Style:

  	
   

  	
  European

  
	 
	
   

  	
   

  	
   

  
	 
	
  Warrant Type:

  	
   

  	
  Call

  
	 
	
   

  	
   

  	
   

  
	 
	
  Effective Date:

  	
   

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

  
	 
	
   

  	
   

  	
   

  
	 
	
  Seller:

  	
   

  	
  Counterparty

  
					

 

 

	
  Buyer:

  	
   

  	
  MSIL

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Number of Warrants:

  	
   

  	
  15,655,875

  
	
   

  	
   

  	
   

  
	
  Warrant Entitlement:

  	
   

  	
  One (1) Share per Warrant

  
	
   

  	
   

  	
   

  
	
  Multiple Exercise:

  	
   

  	
  Inapplicable

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  $107.90

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  $146,666,667, payable by MSIL to Counterparty on the
  Premium Payment Date

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  Trade Date + 3 business days

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  NASDAQ National Market

  
	
   

  	
   

  	
   

  
	
  Related Exchange(s):

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  11:59 pm

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  The Valuation Date.

  
	
   

  	
   

  	
   

  
	
  Exercise Date:

  	
   

  	
  The Expiration Date

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Valuation:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Valuation Date:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Averaging Dates:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Full Exchange Business Day:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Averaging Date Disruption:

  	
   

  	
  Modified Postponement.

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Cash Settlement:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  

 

2

 

	
  Settlement Price:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Cash Settlement Payment Date:

  	
   

  	
  Three (3) Currency
  Business Days after the Valuation Date

  
	
   

  	
   

  	
   

  
	
  Settlement Method Election:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Electing Party:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Settlement Method Election Date:

  	
   

  	
  Three (3) days prior to the first Averaging Date

  
	
   

  	
   

  	
   

  
	
  Default Settlement Method:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Net Physical Settlement Amount:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Strike Price Differential:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Net Physical Settlement

  	
   

  	
   

  
	
  Adjustment:

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Conditions to Net

  	
   

  	
   

  
	
  Physical Settlement:

  	
   

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

  

 

3

 

	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

4

 

	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Limitations on Net Physical

  	
   

  	
   

  
	
  Settlement by Counterparty:

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Dividends:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Extraordinary Dividends:

  	
   

  	
  Any and all dividends paid by Counterparty.

  
	
   

  	
   

  	
   

  
	
  Share Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Nationalization, Insolvency

  	
   

  	
   

  
	
  or Delisting:

  	
   

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

  

 

5

 

	
  Determining Party:

  	
   

  	
  Buyer

  
	
   

  	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Change in Law:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Disruption Event:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Increased Cost of Hedging:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  MSIL

  
	
   

  	
   

  	
   

  
	
  Loss of Stock Borrow:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Increased Cost of Stock Borrow:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  MSIL

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Acknowledgments Regarding

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional Acknowledgments:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other Provisions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Additional Agreements:

  	
   

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

  

 

6

 

	
  Early Termination:

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

7

 

	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Compliance With Securities Laws:

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Counterparty represents and acknowledges that as of
  the date hereof:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

8

 

	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Account Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Account for payments

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  to Counterparty:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Account for payment to MSIL:

  	
   

  	
  Chase Manhattan Bank, New York

  
	
   

  	
   

  	
  BIC: CHASUS33

  
	
   

  	
   

  	
  ABA#: 021-000-021

  
	
   

  	
   

  	
  FAO: Morgan Stanley & Co Intl Ltd.

  
	
   

  	
   

  	
  A/C: 400333139

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For further credit to Customer Account 033AC0048

  
	
   

  	
   

  	
   

  
	
  Agreement Regarding Shares:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Covenant Regarding Shares:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Bankruptcy Rights:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Set-Off:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Collateral:

  	
   

  	
  None.

  
	
   

  	
   

  	
   

  
	
  Transfer:

  	
   

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

  

 

9

 

	
  Regulation:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Indemnity:

  	
   

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

  

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

If MSIL is not entitled
to exercise any Warrant because such exercise would cause MSIL to become,
directly or indirectly, an Excess Share Owner and MSIL thereafter disposes of
Shares owned by it or any action is taken that would then permit MSIL to
exercise such Warrant without such exercise causing it to become, directly or
indirectly, an Excess Share Owner, then MSIL shall provide notice of the taking
of such action to Counterparty and such Warrant shall then become exercisable
by MSIL to the extent such Warrant is otherwise or had otherwise become
exercisable hereunder. In such event, the Expiration Date with respect to such
Warrant shall be the date on which Counterparty receives such

 

10

 

notice from MSIL, and the
related Settlement Date shall be as soon as reasonably practicable after
receipt of such notice but no more than three (3) Exchange Business Days
thereafter (but in no event shall the Settlement Date occur prior to the date
on which it would have otherwise occurred but for the provisions of this
paragraph (d)); provided that the related Net Physical Settlement Amount
shall be the same as the Net Physical Settlement Amount but for the provisions
of this paragraph (d). In addition, within 30 calendar days of the
Settlement Date, Counterparty shall use its reasonable efforts to refrain from
activities that could reasonably be expected to result in MSIL’s ownership of
Shares exceeding 10% of all issued and outstanding Shares.

 

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

 

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

 

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

 

ISDA
Master Agreement

 

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

 

Specified Entities:

 

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

 

Section 5(a)(v):     not applicable

Section 5(a)(vi):    not applicable

Section 5(a)(vii):   not applicable

Section 5(b)(iv):    not applicable

 

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

 

Section 5(a)(v):     not applicable

Section 5(a)(vi):    not applicable

Section 5(a)(vii):   not applicable

Section 5(b)(iv):    not applicable

 

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

 

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

 

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

 

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

 

“Termination Currency”
means USD.

 

Tax Representations:

 

(I)                                    For
the purpose of Section 3(e) of the Agreement, each party represents to the
other party that it is not required by any applicable law, as modified by the
practice of any relevant governmental revenue authority, of any Relevant
Jurisdiction to make any deduction or

 

11

 

withholding for or on
account of any Tax from any payment (other than interest under Section 2(e),
6(d)(ii), or 6(e) of the Agreement) to be made by it to the other party under
the Agreement. In making this representation, each party may rely on (i) the
accuracy of any representations made by the other party pursuant to Section
3(f) of the Agreement, (ii) the satisfaction of the agreement contained in
Section 4(a)(i) or 4(a)(iii) of the Agreement, and the accuracy and
effectiveness of any document provided by the other party pursuant to Section
4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of the
agreement of the other party contained in Section 4(d) of the Agreement; provided
that it will not be a breach of this representation where reliance is placed on
clause (ii) above and the other party does not deliver a form or document under
Section 4(a)(iii) of the Agreement by reason of material prejudice to its legal
or commercial position.

 

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

 

(i)                         MSIL
represents that it is a limited company organized under the laws of England and
Wales and a resident of the United Kingdom.

 

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

 

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

 

Tax forms, documents or
certificates to be delivered are:

 

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

 

Other documents to be
delivered:

 

	
  Party Required to

  Deliver Document

  	
   

  	
  Document Required to be Delivered

  	
   

  	
  When Required

  	
   

  	
  Covered by

  Section 3(d) Representation

  
	
  Counterparty

  	
   

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

  	
   

  	
  Upon or before
  execution and delivery of this Confirmation

  	
   

  	
  Yes

  
	
  Counterparty

  	
   

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

  	
   

  	
  Upon or before
  execution and delivery of this Confirmation

  	
   

  	
  Yes

  
	
  MSIL

  	
   

  	
  Guarantee of its
  Credit Support Provider together with evidence of the authority and true
  signatures of the signatories, if applicable

  	
   

  	
  Upon or before
  February 17, 2006

  	
   

  	
  Yes

  

 

12

 

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

 

Address for notices or communications to MSIL for
all purposes:

 

	
  Address:

  	
   

  	
  Morgan Stanley & Co. International Limited

  
	
   

  	
   

  	
  c/o Morgan Stanley Bank

  
	
   

  	
   

  	
  One New York Plaza, 4th Floor

  
	
   

  	
   

  	
  New York, NY 10004

  
	
  Attention:

  	
   

  	
  Fred Gonfiantini

  
	
  Facsimile No.:

  	
   

  	
  (212) 507-0724

  
	
  Telephone No.:

  	
   

  	
  (212) 276-2427

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Law Division

  
	
   

  	
   

  	
  Morgan Stanley

  
	
   

  	
   

  	
  1585 Broadway, 38th Floor

  
	
   

  	
   

  	
  New York, NY 10036

  
	
  Attention:

  	
   

  	
  Anthony Cicia

  
	
  Facsimile No:

  	
   

  	
  (212) 507-4338

  
	
  Telephone No:

  	
   

  	
  (212) 761-3452

  
	
   

  	
   

  	
   

  

 

Address for notices or
communications to Counterparty for all purposes:

 

Amgen Inc.

One Amgen Center Drive

Thousand Oaks, CA
91320-1799

Telephone No.: (805)
447-1000

Facsimile No.: (805)
449-2863

Attention:  Treasurer

 

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

 

	
  Address:

  	
   

  	
  Morgan Stanley Bank

  
	
   

  	
   

  	
  One New York Plaza, 4th
  Floor

  
	
   

  	
   

  	
  New York, NY 10004

  
	
  Attention:

  	
   

  	
  Fred Gonfiantini

  
	
  Facsimile No.:

  	
   

  	
  (212) 507-0724

  
	
  Telephone No.:

  	
   

  	
  (212) 276-2427

  

 

Counterparty does not
appoint a Process Agent.

 

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

 

Calculation Agent. The
Calculation Agent is MSIL.

 

Credit Support Document.

 

MSIL: Guarantee of Morgan Stanley dated February
16, 2006

 

Counterparty: 
Not Applicable

 

Credit Support Provider.

 

With respect to MSIL: Morgan Stanley

 

With respect to Counterparty:  Not Applicable.

 

13

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“To
such party’s best knowledge,”

 

Additional Representations:

 

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

 

Acknowledgements:

 

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

 

(2)           The parties hereto intend
for:

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15

 

Agent. (a)
Morgan Stanley Bank (“MSB”) is acting as agent for both parties but does not
guarantee the performance of MSIL. MSIL is not a member of the Securities
Investor protection Corporation; (b) MSB, MSIL and Counterparty each hereby
acknowledges that any transactions by MSIL or MSB in the Shares will be
undertaken by MSIL as principal for its own account; (c) all of the actions to
be taken by MSIL and MSB in connection with the Transaction shall be taken by
MSIL or MSB independently and without any advance or subsequent consultation
with the Counterparty; and (d) MSB is hereby authorized to act as agent for
Counterparty only to the extent required to satisfy the requirements of Rule
15a-6 under the Exchange Act in respect of the transactions described
hereunder.

 

16

 

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

 

Very truly yours,

 

	
  Morgan Stanley &
  Co. International Limited

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

17

 

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

 

Very truly yours,

 

	
  Morgan Stanley Bank, as
  agent

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

18

 

Confirmed as of the date
first above written:

 

	
  AMGEN INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

19

 

February
    , 2006

 

To:               Amgen, Inc.

 

Ladies
and Gentlemen:

 

In
consideration of that certain 1992 ISDA Master Agreement and Schedule related
thereto dated as of February 14, 2006 among Morgan Stanley & Co.
International Limited (hereinafter “Party A”) and Amgen Inc. (hereinafter “Party
B”) with Morgan Stanley Bank as agent for both parties (such 1992 ISDA Master
Agreement and Schedule related thereto, together with each Confirmation
exchanged between the parties pursuant thereto, hereinafter the “Agreement”),
Morgan Stanley, a Delaware corporation (hereinafter “MS”), hereby irrevocably
and unconditionally guarantees to Party B, with effect from the date of the
Agreement, the due and punctual payment of all amounts payable by Party A under
the Agreement when the same shall become due and payable, whether on Scheduled
Payment Dates, upon demand, upon declaration of termination or otherwise, in
accordance with the terms of the Agreement. Upon failure of Party A punctually
to pay any such amounts, and upon written demand by Party B to MS at its
address set forth in the signature block of this Guarantee (or to such other
address as MS may specify in writing), MS agrees to pay or cause to be paid
such amounts; provided that delay by Party B in giving such demand shall in no
event affect MS’s obligations under this Guarantee.

 

MS
hereby agrees that its obligations hereunder shall be continuing and
unconditional and will not be discharged except by complete payment of the
amounts payable under the Agreement, irrespective of any claim as to the
Agreement’s validity, regularity or enforceability or the lack of authority of
Party A to execute or deliver the Agreement; or any change in or amendment to
the Agreement; or any waiver or consent by Party B with respect to any
provisions thereof; or the absence of any action to enforce the Agreement, or
the recovery of any judgment against Party A or of any action to enforce a
judgment against Party A under the Agreement; any similar circumstance which
might otherwise constitute a legal or equitable discharge or defense of a
guarantor generally.

 

MS
hereby waives diligence, presentment, demand on Party A for payment or
otherwise (except as provided hereinabove), filing of claims, requirement of a
prior proceeding against Party A and protest or notice, except as provided for
in the Agreement with respect to amounts payable by Party A. This Guarantee is
a guarantee of payment and not of collection. If at any time payment under the
Agreement is rescinded or must be otherwise restored or returned by Party B
upon the insolvency, bankruptcy or reorganization of Party A or MS or
otherwise, MS’s obligations hereunder with respect to such payment shall be
reinstated upon such restoration or return being made by Party B.

 

MS
represents to Party B as of the date hereof that:

 

1.                        it is duly organized and validly existing
under the laws of the jurisdiction of its incorporation and has full power and
legal right to execute and deliver this Guarantee and to perform the provisions
of this Guarantee on its part to be performed;

 

2.                        its execution, delivery and performance of
this Guarantee have been and remain duly authorized by all necessary corporate
action and do not contravene any provision of its certificate of incorporation
or by-laws or any law, regulation or contractual restriction binding on it or
its assets;

 

3.                        all consents, authorizations, approvals and
clearances (including, without limitation, any necessary exchange control
approval) and notifications, reports and registrations requisite for its due
execution, delivery and performance of this Guarantee have been obtained from
or, as the case may be, filed with the relevant governmental authorities having
jurisdiction and remain in full force and effect and all conditions thereof
have been duly complied with and no other action by, and no notice to or filing
with, any governmental authority having jurisdiction is required for such
execution, delivery or performance; and

 

4.                        this Guarantee is its legal, valid and binding
obligation enforceable against it in accordance with its terms except as
enforcement hereof may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors’
right or by general equity principles.

 

By
accepting this Guarantee and entering into the Agreement, Party B agrees that
MS shall be subrogated to all rights of Party B against Party A in respect of
any amounts paid by MS pursuant to this Guarantee, provided that MS shall be
entitled to enforce or to receive any payment arising out of or based upon such
right of subrogation only to the extent that it has paid all amounts payable by
Party A under the Agreement.

 

This
Guarantee shall be governed by and construed in accordance with the laws of the
State of New York. All capitalized terms not otherwise defined herein shall
have the respective meanings assigned to them in the Agreement.

 

	
  MORGAN STANLEY

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
  Name:

  
	
   

  
	
  Title:

  
	
   

  
	
  Address:

  

 

20Exhibit 10.81

 

PURCHASE AGREEMENT

 

As of February 16, 2006

 

Citigroup Global Markets
Inc.

390 Greenwich Street

New York, New York 10013

Attention: Corporate
Equity Derivatives

 

Ladies and Gentlemen:

 

Amgen
Inc., a Delaware corporation (the “Company”), subject
to the terms and conditions and in reliance upon the representations and
warranties set forth herein, confirms its agreement with Citigroup Global
Markets Inc. (the “Dealer”) to
purchase from the Dealer 14,188,162 shares (the “Initial
Shares”), of the Company’s common stock, $0.0001 par value per share
(the “Common Stock”), at a per share price of
$81.00 (the “Initial Price”) (subject to
adjustment as provided herein). Prior to the close of business on the first
Trading Day immediately following the date hereof (the “Settlement
Date”), (A) the Company will pay for the Initial Shares by
delivering an amount equal to the Aggregate Purchase Price (as hereinafter
defined) by wire transfer of immediately available funds to an account
designated by the Dealer and (B) the Dealer will deliver the Initial
Shares to the Company. The parties understand and agree that the delivery of
the Initial Shares by or on behalf of the Dealer upon the payment of the
Aggregate Purchase Price by the Company is irrevocable and that as of the
Settlement Date the Company shall be the sole beneficial owner of the Initial
Shares for all purposes.

 

 

The
parties to this Agreement agree that the purchases of shares of Common Stock
anticipated by this Agreement shall be made pursuant to the requirements of and
in conformity with the provisions of Rule 10b5-1 under the Exchange Act
(as hereinafter defined), and a plan established by the Company as permitted by
Rule 10b5-1 (the “Plan”)
described in Annex B hereto.

 

Section 1.
Purchase Price Adjustment.

 

(a)          [Reserved]

 

(b)         For each Trading Day, commencing on the Settlement
Date, the Calculation Agent (as hereinafter defined) shall determine the
following amounts, as applicable:

 

(i)                                     The
Purchase Price Adjustment (as hereinafter defined) owed to the Dealer by the
Company on the Excess Daily Value (as hereinafter defined), if any, for each
prior Trading Day;

 

(ii)                                  The
Purchase Price Adjustment owed to the Company by the Dealer on the Deficit
Daily Value (as hereinafter defined), if any, for each prior Trading Day;

 

(iii)                               The Daily Rebate Value
(as hereinafter defined) owed to the Company by the Dealer on a Daily Notional
Amount (as hereinafter defined), if any, for each prior Trading Day; and

 

(iv)                              The
value (which may be positive or negative) equal to the sum of the Purchase
Price Adjustment pursuant to clause (ii) above and the Daily Rebate Value
pursuant to clause (iii) above minus the Purchase Price Adjustment
pursuant to clause (i) above with respect to each day during the
Transaction Term (a “Daily Accrual Value”).

 

2

 

(c)                                  On the tenth Trading Day immediately
following the last day of the Transaction Term (the “Final
Settlement Date”), the Dealer shall pay the Final Settlement Value
if the Final Settlement Value is negative or the Company shall pay the Final
Settlement Value if the Final Settlement Value is positive.

 

(d)                                 In the event that the Final Settlement
Value is positive, prior to the close of business on the Final Settlement Date,
the Company shall cause to be delivered the lesser of (Y) Final Stock
Settlement Shares, the value of which is equal to the Final Settlement Value or
(Z) the Cap Amount (such lesser amount, the “Positive
Final Settlement Value”). If the Company represents to the Dealer
that the Company is not in possession of material non-public information or if
the Company has terminated the Plan pursuant to its terms, then the Company
may, in lieu of the foregoing, elect at its discretion to pay to the Dealer an
amount in cash (by wire transfer of immediately available funds) equal to the
Positive Final Settlement Value. Such election by the Company to pay cash
instead of shares of Common Stock shall be made by the second Trading Day
immediately succeeding the notice by the Dealer to the Company that the Final
Settlement Value is positive.

 

If a Stock Settlement Deficiency exists, the Dealer
will notify the Company within five (5) Trading Days of the determination
of such Stock Settlement Deficiency. Within three (3) Trading Days of such
notification, the Company shall deliver to the Dealer shares of Common Stock,
the value of which is equal to the Stock Settlement Deficiency Amount (such
number of shares being based on the Closing Price of the Common Stock on the
third Trading Day immediately succeeding the date of the notification by the
Dealer to the Company of the Stock Settlement Deficiency). If the Company
delivers shares of Common Stock pursuant to the preceding sentence, the Company
shall be obligated to deliver shares of Common Stock to the Dealer, upon
notification by the Dealer, until such time as the Dealer has received an
amount

 

3

 

from the sale of such shares equal to the Final Settlement Value or
until such time as the Company has delivered the amount of shares which is
equal to the Cap Amount. If the Company represents to the Dealer that the
Company is not in possession of material non-public information or if the
Company has terminated the Plan pursuant to its terms, then the Company may, in
lieu of the foregoing, elect at its discretion to pay to the Dealer an amount
in cash (by wire transfer of immediately available funds) equal to the Stock
Settlement Deficiency instead of delivering shares of Common Stock anticipated
by the first sentence of this paragraph. Such election by the Company to pay
cash instead of shares of Common Stock shall be made by the second Trading Day
immediately succeeding the notice by the Dealer to the Company of Stock
Settlement Deficiency.

 

If a Stock Settlement Excess exists, the Dealer will
notify the Company within five (5) Trading Days of the determination of
such Stock Settlement Excess. Within three (3) Trading Days of such
notification, the Dealer shall deliver to the Company the Stock Settlement
Excess Amount. If the Company represents to the Dealer that the Company is not
in possession of material non-public information or if the Company has
terminated the Plan pursuant to its terms, then the Company may, in lieu of the
foregoing, elect at its discretion to have the Dealer pay an amount in cash (by
wire transfer of immediately available funds) equal to proceeds received by
Dealer from the sale of the Stock Settlement Excess Amount instead of
delivering shares of Common Stock anticipated by the immediately preceding
sentence. Such election by the Company to receive cash instead of shares of
Common Stock shall be made by the second Trading Day immediately succeeding the
notice by the Dealer to the Company of Stock Settlement Excess.

 

4

 

In the event that the Final Settlement Value is
negative, the Dealer shall cause such amount to be delivered to the Company. The
Dealer shall satisfy such obligation by delivery to the Company of a number of
shares of Common Stock equal to the quotient obtained by dividing the Final
Settlement Value by the average per share purchase price paid by the Dealer to
acquire (in a commercially reasonable manner) such shares of Common Stock. If
the Company represents to the Dealer that the Company is not in possession of
material non-public information or if the Company has terminated the Plan
pursuant to its terms, then the Company may, in lieu of the foregoing, elect at
its discretion to have the Dealer pay an amount in cash (by wire transfer of
immediately available funds) equal to the Final Settlement Value instead of
delivering shares of Common Stock anticipated by the immediately preceding
sentence. Such election to receive cash instead of shares of Common Stock shall
be made by second Trading Day immediately succeeding the notice by the Dealer
to the Company that the Final Settlement Value is negative.

 

If the Dealer is unable to purchase a total number of
shares of Common Stock equal to the Initial Shares by the deadline established
in the definition of “Maturity Date,” then such deadline shall be postponed to
a date determined by the Dealer in a written notice to the Company that would
enable the Dealer to purchase a total number of shares of Common Stock equal to
the Initial Shares. For the purposes of clarity, it is understood and
acknowledged by the parties hereto that such postponement shall, among other
consequences, extend the Transaction Term and that additional postponements may be
required if the Dealer continues to be unable to purchase a total number of
shares of Common Stock equal to the Initial Shares by any postponed deadline
for the Maturity Date.

 

The Final Stock Settlement Shares and any other shares
of Common Stock made as payment by the Company to the Dealer pursuant to Section 1(d) shall
be delivered by the Company in shares of Common Stock the resale of which may be
unregistered or registered

 

5

 

under the Securities Act (in the Company’s sole discretion). In the
event the Company elects to deliver shares pursuant to Section 1(d) that
are intended to be registered under the Securities Act, no later than the
Trading Day immediately prior to any delivery, the Company shall have executed
and delivered to the Dealer the Registration Rights Agreement. In the event
that shares which are not intended to be registered under the Securities Act
are delivered to the Dealer pursuant to Section 1(d), the Dealer shall, in
consultation with the Company, determine the value of such shares by applying a
commercially reasonable discount (which discount shall reflect any costs
associated with the delay in resale addressed in the next sentence). If at the
time of the delivery and resale of any shares which are not intended to be
registered under the Securities Act the Company is unable to represent that the
Company is not in possession of material non-public information, then the
Dealer shall delay the resale of such shares until such representation may be
made.

 

Section 2.
Anti-dilution Adjustments.

 

(a)                                  Subdivisions and Combination of Common
Stock. In the
event that the outstanding shares of the Common Stock shall be subdivided or
split (including by means of a stock dividend) into a greater number of shares
of Common Stock where the effective date of such subdivision or the record date
for such split occurs during the Transaction Term, the Initial Shares, the
Daily Share Purchase Amount, the Cap Amount and the other share-based terms
used herein shall be proportionately increased and the Initial Price shall be
deemed to be proportionately decreased. Conversely, in the event that the
outstanding shares of Common Stock shall each be combined into a smaller number
of shares of Common Stock through a combination of shares of Common Stock or a
reverse stock split where the effective date of such combination or the record
date for such reverse stock split occurs during the Transaction Term,

 

6

 

the Initial Shares, the
Daily Share Purchase Amount, the Cap Amount and the other share-based terms
used herein shall be proportionately decreased and the Initial Price shall be
proportionately increased. Any adjustment pursuant to this Section 2(a) shall
become effective (i) in the case of a subdivision or combination of the
Common Stock, on the effective date of such subdivision or combination or (ii) in
the case of a stock split or reverse stock split, at the close of business on
the record date for such stock split or reverse stock split. Notwithstanding
anything to the contrary contained herein, no adjustment shall be made pursuant
to this Section 2(a) unless a similar adjustment is required to be
made to the number of shares of Common Stock delivered or deliverable to the
lender or lenders of Common Stock to the Dealer.

 

(b)                                 Reclassification, Consolidation, Merger
or Sale of Assets.
In the event that during the Transaction Term the Company shall enter into any
agreement, arrangement or understanding that provides for any recapitalization or
reclassification of the Common Stock (other than a change in par value, or from
par value to no par value, or from no par value to par value, or as a result of
an event specified in Section 2(a)), any consolidation of the Company
with, or merger of the Company into, any other person, any merger of another
person into the Company (other than a merger which does not result in a
reclassification, conversion, exchange or cancellation of outstanding shares of
Common Stock), any sale or transfer of all or substantially all of the assets
of the Company or any compulsory share exchange and pursuant to any of which
the Common Stock is converted into the right to receive other securities, cash
or other property (each of the foregoing, an “Extraordinary
Transaction”), then the Dealer and the Company shall negotiate in
good faith to amend this Agreement to give appropriate effect to the
Extraordinary Transaction. In the event that the parties are unable to reach an
agreement on the earlier of (i) twenty (20) Trading Days prior to the
date, if any, that is specified for the consummation of such

 

7

 

transaction under the governing legal agreements for such transaction
and (ii) ten (10) Trading Days after the first public disclosure of
the contemplated Extraordinary Transaction (such earlier date, the “Early Termination Date”), (w) the Transaction Term shall be
deemed to terminate on the fifth Trading Day after the Early Termination Date,
(x) the provisions of Section 3(b)(i) shall be void and of no further
force or effect from and after the Early Termination Date, (y) the Final
Settlement Date shall be the eighth Trading Day after the Early Termination
Date and (z) the Final Settlement Value shall be determined in a commercially
reasonable manner by the Calculation Agent in consultation with the Company and
the Dealer.

 

(c)                                  Stock Borrow. In the event the Dealer cannot borrow a
sufficient number of shares of Common Stock equal to the remaining number of
Initial Shares not repurchased prior to such time at an average cost equal to
the Spread or less, the Dealer, may request a change to the Spread to
directly compensate for such cost above the Spread.

 

Section 3.
Covenants.

 

(a)          The Company covenants and agrees with the Dealer:

 

(i)                                     during
the Transaction Term, (A) neither the Company nor any of its affiliates
shall take any action that would cause the purchases by the Dealer pursuant to Section 3(b)(i) of
this Agreement not to comply with the provisions of Rule 10b-18(b)(1) under
the Exchange Act as if such provisions applied and (B) the Company will
provide the Dealer with all information necessary for Dealer to comply with Rule 10b-18(b)(4) as
if such provisions applied;

 

(ii)                                  during
the Transaction Term, to promptly notify the Dealer telephonically (which oral
communication shall be promptly confirmed by telecopy to the Dealer) that as a
result of an acquisition or other business combination transaction or for any

 

8

 

other
reason, the Company determines that the Company will be engaged in a
distribution of shares of Common Stock or other securities for which Common
Stock is a reference security for purposes of Rule 102 of Regulation M
under the Exchange Act and to promptly notify the Dealer by telecopy of the
period commencing on the date that is one (1) business day before the
commencement of such distribution and ending on the day on which the Company
completes the distribution;

 

(iii)                               during the Transaction
Term, the Company shall not (i) alter its dividend policy that is in
effect on the date hereof, (ii) declare an extraordinary dividend or (iii) set
an ex-dividend date prior to the Maturity Date; and

 

(iv)                              the
Company will pay the reasonable and documented fees and expenses of Davis Polk &
Wardwell, counsel to the Dealer in connection with this Agreement and the
transactions contemplated hereby.

 

(b)                                 the Dealer covenants and agrees with the
Company:

 

(i)                                     subject
to clauses (ii), (iii), (iv) and (v) below, to use its best efforts to
purchase, or cause to be purchased, on each Trading Day during the Transaction
Term the Daily Share Purchase Amount on the open market at the then market
price;

 

(ii)                                  in
connection with bids and purchases pursuant to clause (i) above, the
Dealer shall comply, or cause compliance, with the timing and volume provisions
of Rule 10b-18(b)(2) and (4) under the Exchange Act as if such
provisions applied;

 

(iii)                               in connection with bids
and purchases pursuant to clause (i) above, the Dealer will effect
purchases at a purchase price that does not exceed the highest independent bid
or the last independent transaction price, whichever is higher, reported in the

 

9

 

consolidated
system at the time such purchases are effected (as those terms are defined in Rule 10b-18
under the Exchange Act);

 

(iv)                              not
to purchase shares of Common Stock on any Trading Day with respect to which the
Dealer reasonably determines in good faith that it is required, in light of
legal or regulatory requirements or related policies and procedures reasonably
adopted by the Dealer, to refrain from purchasing shares of Common Stock on any
such Trading Day. The Dealer shall promptly notify the Company upon exercising
its rights pursuant to this clause (iv) and shall subsequently promptly
notify the Company on the day the Dealer shall resume purchasing shares of
Common Stock pursuant to clause (i) above, it being understood that the
Dealer shall not be required to indicate to the Company the reason for the
Dealer’s exercise of its rights pursuant to this clause (iv) if the Dealer
reasonably determines in good faith that disclosing such reason to the Company may result
in a violation of federal or state securities laws or is prohibited by the
Dealer’s internal conflicts policies and procedures; and

 

Section 4.                                          Representations and Warranties.

 

The
Company hereby represents and warrants to the Dealer that as of the date hereof
and each Trading Day during the Transaction Term:

 

(a)                                  the Company has all power and authority
to execute this Agreement and enter into the Plan and the transactions
contemplated hereby (other than with respect to discretionary actions which, if
undertaken by the Company, shall be duly authorized by the Board of Directors
of the Company);

 

(b)                                 this Agreement has been duly authorized,
validly executed and delivered by the

 

10

 

Company and constitutes a legal, valid and binding agreement of the
Company, enforceable against the Company in accordance with its terms (subject,
as to enforcement of remedies, to applicable bankruptcy, reorganization,
insolvency, moratorium, fraudulent conveyance or other similar laws affecting
the rights of creditors now or hereafter in effect, and to equitable principles
that may limit the right to specific enforcement of remedies);

 

(c)                                  the Company is not entering into this
Agreement (i) to create actual or apparent trading activity in the Common
Stock (or any security convertible into or exchangeable for Common Stock) or (ii) to
facilitate a future distribution of the Common Stock (or any security
convertible into or exchangeable for Common Stock) or in connection with a
future issuance of securities as part of a plan, in either case with the
intention to manipulate the price of the Common Stock (or any security
convertible into or exchangeable for Common Stock);

 

(d)                                 the purchase of the Initial Shares by the
Company, the compliance by the Company with all of the provisions of this
Agreement and the consummation of the transactions herein contemplated will not
result in any violation of the provisions of the Restated Certificate of
Incorporation, as amended, or Amended and Restated Bylaws, as amended, of the
Company or any statute or any rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any of its
properties;

 

(e)                                  no consent, approval, authorization,
order, registration or qualification of or with any court or governmental
agency or governmental body having jurisdiction over the Company is required
for the purchase of the Initial Shares by the Company, the compliance by the
Company with all the terms of this Agreement, or the consummation by the
Company of the transactions contemplated by this Agreement, other than the
registration of shares of Common Stock pursuant to the Registration Rights
Agreement; and

 

11

 

(f)                                    the Company has made its own independent
inquiry as to the legal, tax, credit and accounting aspects of the transactions
contemplated by this Agreement and any related transactions, and the Company
has not relied on the Dealer, the Dealer’s legal counsel or the Dealer’s
accounting advisors for legal, tax, credit or accounting advice in connection
with the transactions contemplated by this Agreement or any related
transactions. The Company agrees and acknowledges that the Dealer and its
affiliates may from time to time, not in the capacity of the Company’s
agent but in the ordinary course of their business, execute transactions for
their own account or the account of customers and hold and deal in securities
or options on securities of the Company (including, without limitation, Common
Stock) and that the Dealer and its affiliates may continue to conduct such
transactions during the Transaction Term.

 

The
Dealer hereby represents and warrants to the Company that:

 

(a)                                  the Dealer has all power and authority to
execute this Agreement and to consummate the transactions contemplated hereby;

 

(b)                                 this Agreement has been duly authorized,
validly executed and delivered by the Dealer and constitutes a legal, valid and
binding agreement of the Dealer, enforceable against the Dealer in accordance
with its terms (subject, as to enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium, fraudulent conveyance or other similar
laws affecting the rights of creditors now or hereafter in effect, and to
equitable principles that may limit the right to specific enforcement of
remedies);

 

(c)                                  the Dealer has made its own independent
inquiry as to the legal, tax, credit and accounting aspects of the transactions
contemplated by this Agreement and any related transactions, and the Dealer has
not relied on the Company or its legal counsel or accounting advisors for
legal, tax, credit or accounting advice in connection with the transactions contemplated
by this Agreement or any related transactions; and

 

12

 

(d)                                 the Dealer acknowledges that its rights
under this Agreement (other than Section 5) do not directly or indirectly
give rise to any rights or claims against the Company as a creditor of the
Company.

 

Section 5.
Indemnification.

 

(i) 
The Company agrees to indemnify the Dealer and its affiliates and their respective
directors, officers, employees, agents and controlling persons (the Dealer and
each such person being an “Indemnified Party”)
from and against any and all losses, claims, damages and liabilities, joint or
several, to which such Indemnified Party may become subject (and with
respect to which is not duplicative of reimbursements otherwise made pursuant
to the terms of this Agreement other than Section 5) under any applicable
federal or state law, or otherwise, and related to or arising out of (a) the
breach by the Company of any of its representations or warranties contained in
this Agreement or the Plan and (b) the breach by the Company of any of its
covenants or agreements contained in this Agreement or the Plan, and will
reimburse any Indemnified Party for all expenses (including reasonable counsel
fees and expenses) in connection with the investigation of, preparation for or
defense or settlement of any pending or threatened claim or any action or
proceeding arising therefrom, whether or not such Indemnified Party is a party
except if such claim, action or proceeding is initiated or brought by or on
behalf of the Company. The Company will not be liable under the foregoing
indemnification provision to the extent that any loss, claim, damage, liability
or expense is found in a final judgment by a court to have resulted directly
from willful misconduct or negligence on the part of the Dealer or on the part of
any other Indemnified Party.

 

13

 

(ii)  If the indemnification provided for in this
Agreement is for any reason held unenforceable, the Company agrees to
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with the same) for
which such indemnification is held unenforceable as shall be appropriate to
reflect (1) the relative fault of the Company on the one hand and the
Indemnified Parties on the other hand in connection with the actions or
inactions that have resulted in such losses, claims, damages, liabilities and
expenses, (2) the relative benefits received by the Company on the one
hand and the Dealer on the other hand from the transactions contemplated by
this Agreement and (3) any other relevant equitable considerations. Relative
fault shall be determined by reference to, among other things, each such party’s
relative intent, knowledge, access to information and opportunity to correct or
prevent such action or inaction. The Company and the Dealer each agree that it
would not be just and equitable if contribution pursuant to this subparagraph (ii) were
to be determined by pro rata allocation or by any other method of allocation
that does not take account of the equitable considerations referred to above. Notwithstanding
the provisions of this Section 5, the Dealer shall not be required to
contribute in excess of the amount equal to the excess of (x) the compensation
received by the Dealer pursuant to this Agreement over (y) the amount of any
damages which the Dealer has otherwise been required to pay by reason of any
such action or inaction.

 

(iii)  The Company agrees that without the prior
written consent of the Dealer, which consent shall not be unreasonably
withheld, it will not settle, compromise or consent to the entry of any
judgment in any pending or threatened claim, action or proceeding in respect of
which indemnification could be sought under the indemnification provision of
this Agreement unless such settlement, compromise or consent includes an
unconditional release of each Indemnified Party from all liability arising out
of such claim, action or proceeding.

 

14

 

(v) The provisions of this Section 5 shall
survive any termination of this Agreement or completion of the transactions
contemplated hereby for one (1) year.

 

(vi) Promptly after receipt by an Indemnified
Party of notice of the commencement of any action, such Indemnified Party will,
if a claim in respect thereof may be made against the Company under this Section 5,
notify the Company in writing of the commencement thereof, but the omission so
to notify the Company will not relieve it from any liability which it may have
to any Indemnified Party otherwise than under this Section 5 except to the
extent that the Company’s rights are materially prejudiced as a result of such
delay. In case such notice of any such action shall be so given, the Company
shall be entitled to participate at its own expense in the defense, or if it so
elects, to assume the defense of such action, in which event such defense shall
be conducted by counsel chosen by the Company and reasonably satisfactory to
the Indemnified Party or Indemnified Parties who shall be defendant or
defendants in such action, and such defendant or defendants shall bear the fees
and expenses of any additional counsel retained by them; but if the Company
shall elect not to assume the defense of such action, the Company will
reimburse such Indemnified Party or Indemnified Parties for the reasonable fees
and expenses of any counsel retained by them; provided, however,
if the defendants in any such action (including impleaded parties) include both
the Indemnified Parties and the Company and counsel for the Company shall have
reasonably concluded that there may be a conflict of interest involved in
the representation by a single counsel of both the Indemnifying Parties and the
Company, the Indemnified Party or Indemnified parties shall have the right to
select separate counsel, satisfactory to the Company (it being understood,
however, that the Company shall not be liable for the expenses of more than one
separate counsel representing the Indemnified Parties who are parties to such
action.

 

15

 

Section 6.                                          Certain Definitions.

 

As
used herein the following terms shall have the meanings set forth below:

 

“Actual Share Purchase Amount” shall mean the actual number
of shares of Common Stock purchased by the Dealer pursuant to Section 3(b)(i) of
this Agreement on any given Trading Day.

 

“Actual Share Purchase Value” shall mean, on any given
Trading Day, the product of the Actual Share Purchase Amount and the
corresponding Settlement Price.

 

“Aggregate Actual Share Purchase Value” shall mean the amount
equal to the aggregate value of all Actual Share Purchase Values, as calculated
during the Transaction Term.

 

“Aggregate
Purchase Price” shall mean an amount
equal to the Initial Price multiplied by the number of Initial Shares.

 

“Aggregate Purchase Price Adjustment Value” shall mean the
sum (which may be positive, if the Dealer owes the Company value, or
negative, if the Company owes the Dealer value) of all Daily Accrual Values for
each Trading Day during the Transaction Term.

 

“Applicable Adjustment Rate” shall mean, for any given Trading
Day, an interest rate equal to the Daily Federal Funds Rate.

 

“Calculation Agent” shall mean the Dealer.

 

“Cap Amount” shall mean 16,400,000 shares.

 

“Closing Price” on any day shall mean the last reported sales
price regular way of the Common Stock on such day or, in case no such sales
price is reported on such day, the average of the reported closing bid and
asked prices of the Common Stock, in each case on the NASDAQ, or if not then
traded on the NASDAQ, the principal securities exchange or quotation system on
which the Common Stock is then listed or admitted to trading, or if not then
listed or

 

16

 

admitted to trading on a securities exchange or
quotation system, the average of the closing bid and asked prices of the Common
Stock in the over-the-counter market on the day in question as reported by the
National Quotations Bureau Incorporated, or a similarly generally accepted
reporting service, or, if not so available in such manner, as furnished by any
NASDAQ member firm selected by the Calculation Agent.

 

“Daily Effective Rate” shall mean an amount determined by the
Calculation Agent equal to the Daily Federal Funds Rate less the Spread.

 

“Daily Federal Funds Rate” shall mean, with respect to any
Trading Day, the rate on such date for United States dollar federal funds as
published in H.15(519) under the heading “Federal Funds (Effective)”.

 

“Daily Notional Amount” shall mean an amount determined by
the Calculation Agent equal to the product of (i) the Initial Price and (ii) the
amount by which the Initial Shares exceeds the sum of all Actual Share Purchase
Amounts which have been executed up to and including the Trading Day preceding
the applicable Trading Day.

 

“Daily Rebate Value” shall mean an amount determined by the
Calculation Agent equal to the product of (i) the Daily Effective Rate, (ii) 1/360
and (iii) each corresponding Daily Notional Amount.

 

“Daily Share Purchase Amount” shall mean an amount to be
determined by the Dealer up to the maximum amount of shares of Common Stock
permitted to be purchased pursuant to Rule 10b-18 (the “10b-18 Amount”); provided, however, that such
amount shall not be less than the lesser of (1) 1,000,0000 shares of
Common Stock and (2) the 10b-18 Amount.

 

“Daily Share Purchase Value” shall mean the product of the
Actual Share Purchase Amount and the Initial Price.

 

17

 

“Deficit Daily Value” shall mean, on any given Trading Day,
if the Settlement Price is less than the Initial Price, the positive value by
which the Daily Share Purchase Value exceeds the Actual Share Purchase Value,
but in no event less than zero.

 

“Excess Daily Value” shall mean, on any given Trading Day, if
the Settlement Price is greater than the Initial Price, the positive value by
which the Actual Share Purchase Value exceeds the Daily Share Purchase Value,
but in no event less than zero.

 

“Exchange Act” shall mean the Securities Exchange Act of
1934, as amended.

 

“Final Settlement Value” shall mean (i) the Aggregate
Actual Share Purchase Value minus (ii) the sum of (A) the Aggregate
Purchase Price plus (B) the Aggregate Purchase Price Adjustment Value.

 

“Final Stock Settlement Shares” shall mean a number of shares
of Common Stock determined by the Calculation Agent (rounded up or down to the
nearest whole number) equal to the number of shares of Common Stock that the
Company would be required to deliver to the Dealer to satisfy its obligations
to the Dealer pursuant to Section 1, based on the Closing Price of the
Common Stock as of the Common Stock on the third Trading Day immediately
succeeding the date of notification by the Dealer to the Company that the Final
Settlement Value is positive.

 

“Maturity Date” shall mean the date on which the total number
of shares of Common Stock purchased by the Dealer pursuant to and for purposes
of satisfying the Dealer’s obligation under Section 3(b)(i) of this
Agreement (including for purposes of determining the Final Settlement Value) is
equal to or greater than the Initial Shares, provided, that such date may not
be after March 10, 2006 (which date is subject to postponement pursuant to
Section 1(d) hereof).

 

“NASDAQ” shall mean The NASDAQ Stock Market.

 

“Purchase Price Adjustment” shall mean adjustment amounts
accrued on the Excess

 

18

 

Daily Value or Deficit Daily Value, as applicable, and
excluding the Trading Day on which such Excess Daily Value or Deficit Daily
Value, as applicable, arises up from the first business day immediately
succeeding the Settlement Date to and including the Final Settlement Date at
the Applicable Adjustment Rate for such Trading Day.

 

“Registration Rights Agreement” shall mean the Registration
Rights Agreement, substantially in the form of Annex A attached hereto,
and with such changes as the parties may mutually agree.

 

“Securities Act” shall mean the Securities Act of 1933, as
amended.

 

“Settlement Price” shall mean, on any given Trading Day, the
weighted average market price per share paid by the Dealer to purchase the
Actual Share Purchase Amount.

 

“Spread” shall mean 20 basis points.

 

“Stock Settlement Deficiency” shall mean the occurrence of
each date, if any, on which the amount received by the Dealer from the sale of
the Final Stock Settlement Shares, plus any other shares of Common Stock
delivered by the Company to the Dealer pursuant to Section 1(d), is less
than the Final Settlement Value.

 

“Stock Settlement Deficiency Amount” shall mean the amount by
which the amount received by the Dealer from the sale of the Final Stock
Settlement Shares, plus any other shares of Common Stock delivered by the
Company to the Dealer pursuant to Section 1(d), is less than the Final
Settlement Value.

 

“Stock Settlement Excess” shall mean the occurrence of each
date, if any, on which the amount received by the Dealer from the sale of the
Final Stock Settlement Shares, plus any other shares of Common Stock delivered
by the Company to the Dealer pursuant to Section 1(d), equals or exceeds
the Final Settlement Value.

 

19

 

“Stock Settlement Excess Amount” shall mean the number of
Shares equal to the sum of: (a) the Final Stock Settlement Shares, plus
any shares of Common Stock delivered by the Company to the Dealer pursuant to Section 1(d) (together,
the “Delivered Shares”), remaining when a
Stock Settlement Excess occurs and (b) a number of shares of Common Stock
purchased by the Dealer (in a commercially reasonable manner) with any cash
proceeds received by the Dealer from the sale of the Delivered Shares in excess
of the Final Settlement Value.

 

“Trading Day” shall mean any day on which the Common Stock is
traded on NASDAQ, or, if not then traded on the NASDAQ, the principal
securities exchange or quotation system on which such securities are then
traded or, if not then traded on a securities exchange or quotation system, in
the over-the-counter market.

 

“Transaction Term” shall mean the period commencing on the
Settlement Date and terminating on, and including, the Maturity Date.

 

Section 7.
Miscellaneous.

 

(a)          Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and
obligations set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.

 

(b)         Assignment. Neither the rights under this Agreement nor the
obligations created by this Agreement shall be assignable or delegable, in
whole or in part, by either party herein without the prior written consent of
the other, and any attempt to assign or delegate any rights or obligations
arising under this Agreement without such consent shall be void.

 

(c)          Waivers, etc. No failure or delay on the part of either party
in exercising any power or right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any

 

20

 

such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. No
amendment, modification or waiver of any provision of this Agreement nor
consent to any departure by either party therefrom shall in any event be
effective unless the same shall be in writing, and, in the case of a waiver or
consent, shall be effective only in the specific instance and for the purpose
for which given.

 

(d)                                 Beneficiaries. This Agreement shall be binding upon,
and inure solely to the benefit of, the Company and the Dealer and no other
person shall acquire any rights hereunder. Without limiting the generality of
the foregoing, the Dealer’s obligations under Section 3(b)(i) are
solely for the benefit of the Company and not the holders of any of the Company’s
securities.

 

(e)                                  Changes of Law. If, due to any change in applicable law
or regulations or the interpretation thereof by any court of law or other body
having jurisdiction subsequent to the date of this Agreement, performance of
any provision of this Agreement or any transaction contemplated hereby shall
become impracticable or impossible, the parties hereto shall use their best
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such provision.

 

(f)                                    Confidentiality. Subject (i) to
any contrary requirement of law or applicable regulator, (ii) to the right
of each party to enforce its rights hereunder in any legal action and (iii) in
the case of the Company, to the determination by its counsel that disclosure is
appropriate or necessary, each party shall keep strictly confidential and shall
cause its employees and agents to keep strictly confidential the terms of this
Agreement and any information of or concerning the other party which it or any
of its agents or employees may acquire pursuant to, or in the course of
performing its obligations under, any provision of this Agreement. The Dealer
hereby consents

 

21

 

to the issuance of a press release by the
Company announcing its entry into this Agreement and the filing with the
Securities and Exchange Commission of such information relating thereto as
required under the Exchange Act (in each case in the Company’s sole
discretion).

 

Notwithstanding any
provision in this Agreement, in connection with Section 1.6011-4 of the
Treasury Regulations, the parties hereby agree that each party (and each
employee, representative, or other agent of such party) may disclose to
any and all persons, without limitation of any kind, the U.S. tax treatment and
U.S. tax structure of the transactions contemplated hereby and all materials of
any kind (including opinions or other tax analyses) that are provided to such
party relating to such U.S. tax treatment and U.S. tax structure, other than
any information for which nondisclosure is reasonably necessary in order to
comply with applicable securities laws.

 

(g)         Expenses. The Company will pay or cause to be paid all
expenses incident to the performance of its obligations under this Agreement,
including the fees and disbursements of the Company’s counsel and accountants
and other experts. The Dealer will pay its own expenses incident to the
performance of its obligations under this Agreement.

 

(h)         Headings. Descriptive headings herein are for convenience only
and shall not control or affect the meaning or construction of any provision of
this Agreement.

 

(i)             Counterparts. This Agreement may be executed by the parties
hereto in counterparts, and each such executed counterpart shall be, and
shall be deemed to be, an original instrument and all such counterparts, taken
together, shall constitute one and the same instrument.

 

(j)             Notices. All notices, consents, requests, instructions,
approvals and other communications provided for herein shall be validly given,
made or served if in writing and delivered personally, by telegram, by telecopy
or sent by overnight courier, postage prepaid:

 

22

 

if to the Dealer:

 

Citigroup
Global Markets Inc.

390
Greenwich Street

New
York, New York 10013

Attention: Corporate Equity Derivatives

 

and,
in connection with any notices

pursuant to Section 3(a)(ii) by

telephone and facsimile to:

 

Telephone:
212-723-7357

Facsimile:
212-723-8328

 

 

if to
the Company:

 

Amgen
Inc. 

One
Amgen Center Drive

Thousand
Oaks, California 91320-1799

Facsimile:  805-499-8011

Attention:  Corporate Secretary

 

with a
copy to:

 

Latham &
Watkins LLP

633
West Fifth Street, Suite 4000

Los
Angeles, California 90071

Facsimile:  213-891-8763

Attention:  Gregory P. Rodgers

 

or to such other address as any party may, from time
to time, designate in a written notice given in a like manner. Notice given by telegram
or telecopy shall be deemed delivered when evidence of the transmission is
received by the sender and shall be confirmed in writing by overnight courier,
postage prepaid. Notice given by overnight courier as set out above shall be
deemed delivered the business day after the date the same is mailed.

 

(k)          Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of New York without
reference to conflict of law principles.

 

23

 

(l)             Cap Amount. For the avoidance of doubt, notwithstanding anything
herein to the contrary, in no event shall the Company be obligated to issue or
deliver to the Dealer shares of Common Stock pursuant to this Agreement in
excess of the Cap Amount (as such amount may be adjusted from time to time
pursuant to Section 2).

 

(m)       Waiver of Set-Off. Each of the Dealer and the Company waives any and
all rights it may have to set-off under this Agreement, whether arising
under any agreement, applicable law or otherwise.

 

24

 

If the
foregoing is in accordance with our understanding of our agreement, please sign
and return to us the enclosed duplicate hereof, whereupon this letter and your
acceptance shall represent a binding Agreement between the Company and you.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  AMGEN INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted as of
  the date

  	
   

  
	
  first written
  above.

  	
   

  
	
   

  	
   

  
	
  CITIGROUP GLOBAL
  MARKETS INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

Annex A

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT dated as of               ,
200  between Amgen Inc., a Delaware corporation (the “Company”),
and Citigroup Global Markets Inc. (the “Shareholder”).

 

DEFINITIONS

 

1.1. Definitions. The
following terms, as used herein, have the following meanings:

 

“1933 Act” means
the Securities Act of 1933, as amended, and the rules and regulations
thereunder.

 

“1934 Act” means
the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

 

“Business Day”
means any day except a Saturday, Sunday or other day on which commercial banks
in New York are authorized by law or executive order to close.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common Stock”
means the Company’s common stock, $0.0001 par value.

 

“Person” means
an individual, a corporation, a partnership, a limited liability company, an
association, a trust or other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.

 

A-1

 

“Prospectus”
shall mean the prospectus that is a part of the Shelf Registration
Statement at all times after the effective date of the Shelf Registration Statement,
as the same may be amended.

 

“Purchase Agreement”
means the Purchase Agreement between the Company and the Shareholder dated as
of February 16, 2006.

 

“Registrable Securities”
means all shares of Common Stock delivered by the Company to the Shareholder
pursuant to the Purchase Agreement that it intends to register under the 1933
Act.

 

“Shelf Registration
Statement” means the Shelf Registration Statement as defined in Section 2.1.

 

“Underwriter”
means a securities dealer who purchases any Registrable Securities as principal
and not as part of such dealer’s market-making activities.

 

REGISTRATION
RIGHTS

 

2.1. Shelf Registration. (a) 
If the Company delivers Registrable Securities to the Shareholder, the Company
covenants and agrees that as of the date of such delivery the Company shall
have prepared and filed with the Commission a shelf registration statement (as
amended and supplemented from time to time, the “Shelf
Registration Statement”) relating to the Registrable Securities in
accordance with Rule 415 under the 1933 Act, and, to the extent the Shelf
Registration Statement has not theretofore been declared effective or is not
automatically effective upon such filing, the Company shall cause such Shelf
Registration Statement to be declared effective no later than the Final
Settlement Date (as defined in the Purchase Agreement) and to keep such Shelf
Registration Statement continuously effective and in compliance with the 1933
Act and usable for resale of such Registrable Securities for a period from the
date on which

 

A-2

 

the Commission declares such Shelf Registration
Statement effective until the second anniversary of the Final Settlement Date.

 

(b)         [Reserved]

 

(c)          Prior
to the Shelf Registration Statement becoming effective, the Shareholder shall
provide such information as reasonably requested by the Company so that the
Shareholder is named as a selling securityholder in the Shelf Registration
Statement and is permitted to deliver the Prospectus to purchasers of the
Shareholder’s Registrable Securities in accordance with applicable law.

 

(d)         The
Company may suspend the use of the Prospectus for a period not to exceed
45 days in any three-month period or an aggregate of 120 days in any twelve
month period for valid business reasons (not including the avoidance of its
obligations hereunder) or to avoid premature public disclosure of a pending
corporate transaction, including pending acquisitions or divestiture of assets,
mergers and combinations and similar events; provided that the period
that the Company is required to keep the Shelf Registration Statement effective
shall be extended by the number of days during which such Shelf Registration
Statement was not effective or usable pursuant to the foregoing provisions.

 

REGISTRATION
PROCEDURES; INDEMNIFICATION

 

3.1. In connection with any Shelf
Registration Statement:

 

(a)          The Company will promptly notify the Shareholder, and
confirm the notice in writing, (i) when the Shelf Registration Statement,
or any post-effective amendment to the Shelf Registration Statement, shall have
become effective, or any supplement to the Prospectus or any amended Prospectus
shall have been filed, (ii) of any request by the Commission to amend the
Shelf Registration Statement or amend or supplement the Prospectus or for
additional

 

A-3

 

information after the Shelf Registration Statement
shall have become effective, (iii) of the issuance by the Commission of
any stop order suspending the effectiveness of the Shelf Registration Statement
or of any order preventing or suspending the use of any preliminary prospectus,
or of the suspension of the qualification of the Registrable Securities for
offering or sale in any jurisdiction, or of the institution or threatening of
any proceedings for any of such purposes and (iv) of the existence of any
fact that results in the Shelf Registration Statement, the Prospectus or any
document incorporated therein by reference containing an untrue statement of a
material fact or omitting to state a material fact required to be stated
therein or necessary to make any statement therein not misleading.

 

(b)                                 The Company will use its reasonable best
efforts to prevent the issuance of any stop order suspending the effectiveness
of the Shelf Registration Statement or of any order preventing or suspending
the use of any preliminary prospectus and, if any such order is issued, to
obtain the lifting thereof at the earliest possible moment.

 

(c)                                  The Company will furnish to the
Shareholder, without charge, as many signed copies of the Shelf Registration
Statement (as originally filed) and of all amendments thereto, whether filed
before or after the Shelf Registration Statement becomes effective, copies of
all exhibits and documents filed therewith, including documents incorporated by
reference into the Prospectus, prospectus supplements, and signed copies of all
consents of experts, as the Shareholder may reasonably request. The
Company will deliver to the Shareholder, without charge, from time to time
during the period when the Prospectus is required to be delivered under the
1933 Act, such number of copies of the Prospectus (as supplemented or amended)
as the Shareholder may reasonably request.

 

A-4

 

(d)                                 The Company will comply with the 1933 Act
and the 1934 Act so as to permit the completion of the distribution of the
Registrable Securities in accordance with the intended method or methods of
distribution contemplated in the Prospectus.

 

(e)                                  The Company will use its reasonable best
efforts, in cooperation with the Shareholder, to qualify the Registrable
Securities for offering and sale under the applicable securities laws of such
states and other jurisdictions as the Shareholder may designate; provided,
however, that the Company shall not be obligated to qualify the
Registrable Securities for offering and sale under the applicable securities
laws of such states and other jurisdictions where the Company will be obligated
(i) to file any general consent to service of process or to qualify as a
foreign corporation or as a broker or dealer in securities in any jurisdiction
in which it is not so qualified, (ii) to subject itself to taxation in
respect of doing business in any jurisdiction in which it is not otherwise so
subject or (iii) file annual reports or comply with any other requirements
deemed in its reasonable judgment to be unduly burdensome. The Company will
file such statements and reports as may be required by the laws of each
jurisdiction in which the Registrable Securities have been qualified as above
provided.

 

(f)                                    The Company will use its reasonable best
efforts to effect the listing of the Registrable Securities covered by a Shelf
Registration Statement on each securities exchange on which the Company’s
Common Stock is then listed.

 

(g)                                 The Company will enter into such
customary agreements, and take all such other reasonable and customary actions
in connection with the offering in order to expedite or facilitate the disposition
of the Registrable Securities.

 

(h)                                 The Company will pay and bear all costs
and expenses incident to the performance of its obligations in connection with
the Shelf Registration Statement, including, without limitation:

 

A-5

 

(i) the costs of
preparation, printing and filing of the Shelf Registration Statement (including
financial statements and exhibits), as originally filed and as amended, any
preliminary prospectuses and the Prospectus and any amendments or supplements
thereto, and the cost of furnishing copies thereof to the Shareholder; (ii) the
costs of preparation, printing and distribution of certificates representing
the Registrable Securities and other documents relating to the performance of
and compliance with this Agreement by the Company; (iii) the fees and
disbursements of the Company’s counsel and accountants; (iv) expenses
relating to the qualification of the Registrable Securities under applicable
securities laws and any filing for review of the offering with the National
Association of Securities Dealers, Inc.; (v) all fees and expenses
incurred in connection with the listing, if any, of any of the Registrable
Securities on any securities exchange; and (vi) the reasonable fees and disbursements
of one counsel to review the Shelf Registration Statement on behalf of the
Shareholder.

 

(i)                                     Upon the request of the Shareholder or if
required by the rules, regulations or instructions applicable to the
registration form used by the Company, or otherwise by the 1933 Act in
connection with the offering of Registrable Securities pursuant to the Shelf
Registration Statement, the Company will prepare a prospectus supplement that
complies with the 1933 Act and that sets forth the aggregate amount of the
Registrable Securities being sold, the price at which the Registrable
Securities are to be sold, any discounts, commissions or other items
constituting compensation, and such other information as the Shareholder and
the Company deem appropriate in connection with the offering of the Registrable
Securities prior to such prospectus supplement being used or filed with the
Commission.

 

(j)                                     If the Shareholder reasonably determines,
based on advice of legal counsel, that the Shareholder could be deemed an “underwriter”
under the 1933 Act in connection with any resale

 

A-6

 

of the Registrable Securities pursuant to the Shelf Registration
Statement, then in connection with any offering of the Registrable Securities
by the Shareholder, the Company will (i) furnish to the Shareholder (A) an
opinion or opinions of counsel to the Company and (B) a comfort letter or
comfort letters from the Company’s independent public accountants, each in
customary form and covering such matters of the type customarily covered
by opinions or comfort letters, as the case may be, as the Shareholder
reasonably requests and (ii) make its management and corporate records
reasonably available for customary due diligence review by the Shareholder.

 

(k)                                  The Company shall indemnify the
Shareholder (in its capacity as such and in its capacity as an Underwriter),
its respective officers and directors and each Person, if any, who controls any
of such parties within the meaning of Section 15 of the 1933 Act (each an “Indemnified Party”) from and against any and all losses,
claims, damages or liabilities, joint or several, to which they or any of them may become
subject under the 1933 Act or any other statute or common law and shall
reimburse each such Indemnified Party for any legal or other expenses
(including, to the extent hereinafter provided, reasonable counsel fees) as and
when incurred by them in connection with investigating any such losses, claims,
damages or liabilities or in connection with defending any actions, insofar as
such losses, claims, damages, liabilities, expenses or actions arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in the Prospectus, or in the Shelf Registration Statement, or
the omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; provided, however,
that the indemnity agreement contained in this Section 3.1(k) as to any
Indemnified Party shall not apply to any such losses, claims, damages,
liabilities, expenses or actions arising out of, or based upon, any such untrue
statement or alleged untrue

 

A-7

 

statement, or any such omission or alleged omission, if such statement
or omission was made in reliance upon and in conformity with information
furnished in writing to the Company by such Indemnified Party expressly for use
in connection with the preparation of the Shelf Registration Statement or the
related Prospectus or any amendment or supplement to either thereof; and
provided further, that the indemnity agreement contained in this Section 3.1(k)
with respect to the related Prospectus or any amendment or supplement thereto
(if the Company shall have furnished any amendment or supplement thereto) shall
not inure to the benefit of any Indemnified Party on account of any such
losses, claims, damages, liabilities, expenses or actions arising from the sale
of Registrable Securities to any person if a copy of the related Prospectus
(exclusive of any documents incorporated by reference) shall not have been
given or sent to such person by or on behalf of such Indemnified Party with or
prior to the written confirmation of the sale involved unless, with respect to
the delivery of any amendment or supplement to the Prospectus, the alleged
omission or alleged untrue statement was not corrected in such amendment or
supplement at the time of such written confirmation. The indemnity agreement of
the Company contained in this Section 3.1(k) shall remain operative and in
full force and effect regardless of any termination of this Agreement or of any
investigation made by or on behalf of any Indemnified Party, and shall survive
the registration of the Registrable Securities.

 

(l)                                     The Shareholder shall indemnify, defend
and hold harmless the Company and any underwriter and other selling security
holder, and their respective officers and directors, and each person who
controls the Company or any other selling holder within the meaning of Section 15
of the 1933 Act, from and against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become
subject under the 1933 Act or any other statute or common law and shall
reimburse each of them for any legal or other expenses

 

A-8

 

(including, to the extent hereinafter provided, reasonable counsel fees)
as and when incurred by them in connection with investigating any such losses,
claims, damages or liabilities or in connection with defending any actions,
insofar as such losses, claims, damages, liabilities, expenses or actions arise
out of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the Shelf Registration Statement or the related
Prospectus, or the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, if
such statement or omission was made in reliance upon and in conformity with
information furnished in writing to the Company by or on behalf of the
Shareholder, expressly for use in connection with the preparation of the Shelf
Registration Statement or the related Prospectus or any amendment or supplement
to either thereof. The indemnity agreement of the Shareholder contained in this
Section 3.1(l) shall remain operative and in full force and effect
regardless of any termination of this Agreement or of any investigation made by
or on behalf of the Company, any underwriter, or any other selling shareholder,
or their respective managers, directors or officers, or any such controlling
person, and shall survive the registration of the Registrable Securities.

 

(m)                               The Company and the Shareholder each
shall, upon the receipt of notice of the commencement of any action against it
or any person controlling it as aforesaid, in respect of which indemnity may be
sought on account of any indemnity agreement contained herein, promptly give
written notice of the commencement thereof to the party or parties against whom
indemnity shall be sought hereunder, but the failure to notify such
indemnifying party or parties of any such action shall not relieve such
indemnifying party or parties from any liability hereunder to the extent such
indemnifying party or parties is/are not materially prejudiced as a

 

A-9

 

result of such failure to
notify and in any event shall not relieve such indemnifying party or parties
from any liability that it or they may have to the indemnified party
otherwise than on account of such indemnity agreement. In case such notice of
any such action shall be so given, such indemnifying party shall be entitled to
participate at its own expense in the defense, or, if it so elects, to assume
(in conjunction with any other indemnifying parties) the defense of such
action, in which event such defense shall be conducted by counsel chosen by
such indemnifying party or parties and reasonably satisfactory to the
indemnified party or parties who shall be defendant or defendants in such
action, and such defendant or defendants shall bear the fees and expenses of
any additional counsel retained by them; but if the indemnifying party shall
elect not to assume the defense of such action, such indemnifying party will
reimburse such indemnified party or parties for the reasonable fees and
expenses of any counsel retained by them; provided, however, if the defendants
in any such action (including impleaded parties) include both the indemnified
party and the indemnifying party and counsel for the indemnifying party shall have
reasonably concluded that there may be a conflict of interest involved in
the representation by a single counsel of both the indemnifying party and the
indemnified party, the indemnified party or parties shall have the right to
select separate counsel, satisfactory to the indemnifying party, whose
reasonable fees and expenses shall be paid by such indemnifying party, to
participate in the defense of such action on behalf of such indemnified party
or parties (it being understood, however, that the indemnifying party shall not
be liable for the fees and expenses of more than one separate counsel (in
addition to local counsel) representing the indemnified parties who are parties
to such action). The Company and the Shareholder each agree that without the other
party’s prior written consent, which consent shall not be unreasonably
withheld, it will not settle, compromise or consent to the entry of any
judgment in any claim in respect of which

 

A-10

 

indemnification may be
sought under the indemnification provisions of this Agreement, unless such
settlement, compromise or consent (i) includes an unconditional release of
such other party from all liability arising out of such 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 such other party.

 

(n)                                 If the indemnification provided for in
Sections 3.1(k) or (l) above shall be unenforceable under applicable law by an
indemnified party, each indemnifying party agrees to contribute to such
indemnified party with respect to any and all losses, claims, damages,
liabilities and expenses for which each such indemnification provided for in
Sections 3.1(k) or (l) above shall be unenforceable, in such proportion as
shall be appropriate to reflect (i) the relative benefits received by each
indemnifying party on the one hand and the indemnified party on the other hand
from the offering of the Registrable Securities pursuant to this agreement, (ii) if
an allocation solely on the basis provided by clause (i) is not permitted
by applicable law or is inequitable or against public policy, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of each indemnifying
party on the one hand and the indemnified party on the other hand in connection
with the statements or omissions which have resulted in such losses, claims,
damages, liabilities and expenses and (iii) any other relevant equitable
considerations; provided, however, that no indemnified party guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any indemnifying party not
guilty of such fraudulent misrepresentation. Relative fault shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by such indemnifying party or the
indemnified party and each such party’s relative intent, knowledge, access to

 

A-11

 

information and
opportunity to correct or prevent such untrue statement or omission. The
Company and the Shareholder each agree that it would not be just and equitable
if contributions pursuant to this Section 3.1(n) were to be determined by
pro rata allocation or by any other method of allocation which does not taken
account of the equitable consideration referred to above. Notwithstanding the
provisions of this Section 3.1(n), the Shareholder shall not be required
to contribute in excess of the amount equal to the excess of (i) the net
proceeds received by the Shareholder from the sale of Registrable Securities by
it, over (ii) the amount of any damages which the Shareholder has
otherwise been required to pay by reason of any such untrue or alleged untrue
statement or omission or alleged omission.

 

MISCELLANEOUS

 

4.1. Participation in
Underwritten Registrations. No Person may participate in any
underwritten registered offering contemplated hereunder unless such Person (a) agrees
to sell its securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b) completes
and executes all questionnaires, powers of attorney, underwriting agreements
and other documents reasonably required under the terms of such underwriting
arrangements and these Registration Rights.

 

4.2. Notices. All notices,
requests and other communications to either party hereunder shall be in writing
(including telecopy or similar writing) and shall be given,

 

if to
the Company, to:

 

Amgen
Inc. 

One Amgen Center Drive

Thousand
Oaks, California 91320-1799

Telecopy
No.:  805-499-8011

Attention:  Corporate Secretary

 

A-12

 

with a
copy to:

Latham &
Watkins LLP

633
West Fifth Street, Suite 4000

Los
Angeles, California 90071

Telecopy
No.:  213-891-8763)

Attention:  Gregory P. Rodgers.

 

if to
the Shareholder, to:

 

Citigroup
Global Markets Inc.

390
Greenwich Street

New
York, New York 10013

Telephone:
212-723-7357

Facsimile: 212-723-8328

Attention: Corporate Equity Derivatives

 

or such other address or telecopier number as such
party may hereafter specify for the purpose by notice to the other party
hereto. Each such notice, request or other communication shall be effective
when delivered at the address specified in this Section 4.2.

 

4.3. Amendments; No Waivers.

 

(a)                                  Any provision of this Agreement may be
amended or waived if, and only if, such amendment or waiver is in writing and
signed, in the case of an amendment, by the Shareholder and the Company, or in
the case of a waiver, by the party against whom the waiver is to be effective.

 

(b)                                 No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
future exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided shall be cumulative and not exclusive
of any rights or remedies provided by law.

 

4.4. Successors and Assigns.
The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns.

 

A-13

 

Neither this Agreement nor any provision hereof is
intended to confer upon any Person other than the parties hereto any rights or
remedies hereunder.

 

4.5. Counterparts;
Effectiveness. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument. This Agreement
shall become effective when each party hereto shall have received a counterpart hereof
signed by the other party hereto.

 

4.6. Entire Agreement. This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof and supersede all prior agreements, understandings
and negotiations, both written and oral, between the parties with respect
thereto. No representation, inducement, promise, understanding, condition or
warranty not set forth herein or therein has been made or relied upon by any of
the parties hereto.

 

4.7. Governing Law. This
Agreement shall be construed in accordance with and governed by the laws of the
State of New York, without regard to the conflicts of law rules of such
state.

 

A-14

 

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

 

	
   

  	
  AMGEN INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
   

  	
  CITIGROUP GLOBAL
  MARKETS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A-15

 

ANNEX B

 

Rule 10b5-1 Purchase
Plan

 

Amgen
Inc., a Delaware corporation (the “Corporation”),
as of this 16th day of December, 2005, has established this Plan (the “Plan”) in order to purchase the Corporation’s common stock,
$0.0001 par value (the “Common Stock”),
pursuant to the requirements of and in conformity with the provisions of Rule 10b5-1
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Corporation requests that Citigroup
Global Markets Inc. (the “Dealer”)
execute the Plan, in coordination with the purchase requirements of the
attached Purchase Agreement, dated as of February 16, 2006, between the
Corporation and the Dealer (the “Purchase Agreement”),
as follows:

 

1.                                       Starting
on February 16, 2006, the Dealer shall purchase shares pursuant to the
Purchase Agreement.

 

2.                                       The
Plan shall end on the earliest of:

 

(i)                                     March 10,
2006 or any date to which the deadline for the Maturity Date is postponed
pursuant to the Purchase Agreement;

 

(ii)                                  the
completion of all purchases contemplated by the Purchase Agreement; and

 

(iii)                               in the reasonable
determination by either the Corporation or the Dealer that:

 

(1)                                  this
10b5-1 Plan does not comply with Rule 10b5-1 or other applicable
securities laws; or

 

(2)                                  the
Corporation has not, or the Dealer has not, complied with this 10b5-1 Plan, Rule 10b5-1
or other applicable securities laws.

 

B-1

 

In the
event that the Plan terminates pursuant to this clause (iii), the Purchase
Agreement shall be terminated with the same effect as the occurrence of an
Early Termination Date as set forth in Section 2(b) of the Purchase
Agreement.

 

3.                                       The
Corporation represents and agrees that in connection with this Plan it has
complied and will comply with the provisions of Rule 10b-18. The Dealer is
entitled to conclusively rely on information communicated to it by the
Corporation concerning the Corporation’s market activities. In executing the
Plan, the Dealer is instructed to comply with the purchasing conditions
specified in the Purchase Agreement.

 

4.                                       The
Corporation confirms that (a) it established this 10b5-1 Plan in good
faith in compliance with the requirements of Rule 10b5-1 at a time when it
was not in possession of material non-public information, and is entering into
this 10b5-1 Plan in good faith and not as part of a plan or scheme to
evade compliance with the federal securities laws, (b) it understands the
proscriptions of Rule 10b5-1 in respect of offsetting and hedging
transactions, (c) it will not, and it will instruct its executive officers
to not, disclose to any persons at the Dealer effecting purchases under this
10b5-1 Plan, or making decisions with respect to any such purchases, any
information regarding the Corporation that might influence the execution of
this 10b5-1 Plan, and (d) it will inform the Dealer as soon as
possible of any subsequent legal or contractual restrictions affecting the
execution of this 10b5-1 Plan by the Dealer or by the Corporation and of the
occurrence of any event that would cause this 10b5-1 Plan to end or be
suspended as contemplated in Paragraph 2 or 5.

 

5.                                       If
the Dealer must suspend purchases of shares under this 10b5-1 Plan on a
particular day for any of the following reasons:

 

B-2

 

(i)   a day specified by this 10b5-1 Plan is not a
day on which the common stock of the Corporation trades regular way on The
NASDAQ Stock Market (the “Exchange”);

 

(ii) 
trading of the Common Stock on the Exchange is suspended for any reason; or

 

(iii) 
The Dealer cannot effect a purchase of shares due to legal, regulatory or
contractual restrictions applicable to it or to the Corporation (including
without limitation, Regulation M or Rule 10b-5);

 

then the Dealer will resume purchases in accordance
with paragraph 1 above on the next day specified in this 10b5-1 Plan after the
condition causing the suspension of purchases has been resolved to the
reasonable satisfaction of the Dealer in good faith.

 

6.                                       It
is the intent of the Corporation and the Dealer that this Agreement shall be
interpreted to comply with the requirements of Rule 10b5-1(c).

 

7.                                       This
10b5-1 Plan, together with the Purchase Agreement, constitutes the entire
agreement between the Corporation and the Dealer and supersede any prior
agreements or understandings regarding this 10b5-1 Plan.

 

8.                                       The
Plan may be signed in counterparts, each of which will be an original.

 

9.                                       All
notices given by the parties under this Plan will be as follows:

 

If to the Dealer:

 

(i)                                     Citigroup
Global Markets Inc. – 390 Greenwich Street, New York, New York 10013,
(facsimile: 212-723-8328), Attention: Corporate Equity Derivatives.

 

If to the Corporation:

 

(ii)                                  Amgen
Inc. – One Amgen Center Drive, Thousand Oaks, California 91320-1799 (facsimile no. 805-499-8011),
Attention:  Corporate Secretary, with a

 

B-3

 

copy
to Latham & Watkins LLP, 633 West Fifth Street, Suite 4000, Los
Angeles, California 90071 (facsimile no. 213-891-8763), Attention:  Gregory P. Rodgers.

 

10.                                 This
Plan will be governed by and construed in accordance with the internal laws of
the State of New York.

 

11.                                 The
Corporation may terminate the Plan effective immediately at any time after
the Maturity Date by written notice to the Dealer.

 

B-4

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Plan to be duly executed
as of the day and year first above written.

 

	
   

  	
  AMGEN INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
  (Title)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Acknowledged and Agreed:

  
	
   

  	
   

  
	
   

  	
  CITIGROUP GLOBAL MARKETS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
  (Title)

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