Underwriting Agreement – Amgen Inc.

AMGEN INC.

 

$1,250,000,000 2.125% SENIOR NOTES DUE 2017

$750,000,000 3.625% SENIOR NOTES DUE 2022

$1,000,000,000 5.375% SENIOR NOTES DUE 2043

Underwriting Agreement

May 10, 2012

Goldman, Sachs & Co.

J.P. Morgan Securities LLC

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Morgan Stanley & Co. LLC

As representatives of the several Underwriters

named in Schedule I hereto

c/o Goldman, Sachs & Co.

200 West Street

New York, New York 10282

c/o J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park

New York, New York 10036

and

c/o Morgan Stanley & Co. LLC

1585 Broadway

New York, New York 10036

Dear Sirs and Mesdames:

Amgen Inc., a Delaware corporation (the “Company”), proposes, subject
to the terms and conditions stated herein, to issue and sell to the Underwriters
named in Schedule I hereto (the “Underwriters”) an aggregate of
$1,250,000,000 principal amount of the 2.125% Senior Notes due 2017 of the
Company (the “2017 Notes”), an aggregate of $750,000,000 principal amount
of the 3.625% Senior Notes due 2022 of the Company (the “2022 Notes”) and
an aggregate of $1,000,000,000 principal amount of the 5.375% Senior Notes due
2043 of the Company (the “2043 Notes”, and together with the 2017 Notes
and the 2022 Notes, collectively,

 

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the “Securities”) to be issued pursuant to the provisions of an
Indenture, dated as of August 4, 2003 (the “Indenture”), between the
Company and the Bank of New York Mellon, as successor to JPMorgan Chase Bank,
N.A., as Trustee (the “Trustee”). Goldman, Sachs & Co., J.P. Morgan
Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and
Morgan Stanley & Co. LLC have agreed to act as representatives of the
Underwriters (the “Representatives”).

1. Representations and Warranties. (a) The Company represents and
warrants to, and agrees with, you that as of the date hereof and as of the
Closing Date:

(i) An “automatic shelf registration statement” as defined under Rule 405
under the Securities Act of 1933, as amended (the “Act”) on Form S-3
(File No. 333-172617) in respect of the Securities has been filed with the
Securities and Exchange Commission (the “Commission”) not earlier than
three years prior to the date hereof; such registration statement, and any
post-effective amendment thereto, became effective on filing; and no stop order
suspending the effectiveness of such registration statement or any part thereof
has been issued and no proceeding for that purpose has been initiated or, to the
Company’s knowledge, threatened by the Commission, and no notice of objection of
the Commission to the use of such registration statement or any post-effective
amendment thereto pursuant to Rule 401(g)(2) under the Act has been received by
the Company (the base prospectus filed as part of such registration statement,
in the form in which it has most recently been filed with the Commission on or
prior to the date of this Agreement, is hereinafter called the “Basic
Prospectus”; any preliminary prospectus (including any preliminary
prospectus supplement) relating to the Securities filed with the Commission
pursuant to Rule 424(b) under the Act is hereinafter called a “Preliminary
Prospectus”; the various parts of such registration statement, including all
exhibits thereto but excluding Form T-1 and including any prospectus supplement
relating to the Securities that is filed with the Commission and deemed by
virtue of Rule 430B to be part of such registration statement, each as amended
at the time such part of the registration statement became effective, are
hereinafter collectively called the “Registration Statement”; the Basic
Prospectus, as amended and supplemented immediately prior to the Applicable Time
(as defined in Section 1(a)(iii) hereof), is hereinafter called the “Pricing
Prospectus”; the form of the final prospectus relating to the Securities
filed with the Commission pursuant to Rule 424(b) under the Act in accordance
with Section 7(a) hereof is hereinafter called the “Prospectus”; any
reference herein to the Basic Prospectus, the Pricing Prospectus, any
Preliminary Prospectus or the Prospectus shall be deemed to refer to and include
the documents incorporated by reference therein pursuant to Item 12 of Form S-3
under the Act, as of the date of such prospectus; any reference to any amendment
or supplement to the Basic Prospectus, any Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include any post-effective amendment
to the Registration Statement, any prospectus supplement relating to the
Securities filed with the Commission pursuant to Rule 424(b) under the Act and
any documents filed under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and incorporated therein, in each case after the date of
the Basic Prospectus, such Preliminary Prospectus, or the Prospectus, as the
case may be; any reference to any amendment to the Registration Statement shall
be deemed to refer to and include any annual report of the Company filed
pursuant to Section 13(a) or 15(d) of the Exchange Act after the effective date
of the Registration Statement that is incorporated by reference in the
Registration Statement; and any “issuer free writing prospectus” as defined in
Rule 433 under the Act relating to the Securities is hereinafter called an
“Issuer Free Writing Prospectus”);

 

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(ii) No order preventing or suspending the use of any Preliminary Prospectus
or any Issuer Free Writing Prospectus has been issued by the Commission, and
each Preliminary Prospectus, at the time of filing thereof, conformed in all
material respects to the requirements of the Act and the Trust Indenture Act of
1939, as amended (the “Trust Indenture Act”) and the rules and
regulations of the Commission thereunder, and did not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided,
however, that this representation and warranty shall not apply to any
statements or omissions made in reliance upon and in conformity with information
furnished in writing to the Company by an Underwriter through the
Representatives expressly for use therein;

(iii) For the purposes of this Agreement, the “Applicable Time” is
7:15 pm, New York City time, on the date of this Agreement; the Pricing
Prospectus as supplemented by the final term sheets prepared and filed pursuant
to Section 7(a) hereof, taken together (collectively, the “Pricing Disclosure
Package”) as of the Applicable Time, did not include any untrue statement of
a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading; and each Issuer Free Writing Prospectus listed on Schedule
II(a) hereto does not conflict with the information contained in the
Registration Statement, the Pricing Prospectus or the Prospectus and each such
Issuer Free Writing Prospectus, as supplemented by and taken together with the
Pricing Disclosure Package as of the Applicable Time, did not include any untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided, however, that this
representation and warranty shall not apply to statements or omissions made in
an Issuer Free Writing Prospectus in reliance upon and in conformity with
information furnished in writing to the Company by an Underwriter through the
Representatives expressly for use therein;

(iv) The documents incorporated by reference in the Registration Statement,
when they became effective or were filed with the Commission, as the case may
be, conformed in all material respects to the requirements of the Act or the
Exchange Act, as applicable, and the rules and regulations of the Commission
thereunder, and none of such documents contained an untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; any further
documents so filed and incorporated by reference in the Registration Statement
or any further amendment or supplement thereto, when such documents become
effective or are filed with the Commission, as the case may be, will conform in
all material respects to the requirements of the Act or the Exchange Act, as
applicable, and the rules and regulations of the Commission thereunder and will
not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading; and no such documents were filed with the Commission since the
Commission’s close of business on the business day immediately prior to the date
of this Agreement and prior to the execution of this Agreement, except as set
forth on Schedule II(b) hereto;

(v) The Registration Statement conforms, and the Prospectus and any further
amendments or supplements to the Registration Statement and the Prospectus will

 

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conform, in all material respects to the requirements of the Act and the
Trust Indenture Act and the rules and regulations of the Commission thereunder;
and the Registration Statement does not and will not, as of the applicable
effective date as to each part of the Registration Statement, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; and
the Prospectus and any Preliminary Prospectus will not, as of the applicable
filing date and any amendment or supplement thereto, include any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided, however, that this
representation and warranty shall not apply to any statements or omissions made
in reliance upon and in conformity with information furnished in writing to the
Company by an Underwriter through the Representatives expressly for use therein;

(vi) Ernst & Young LLP, which has audited the consolidated financial
statements of the Company and its consolidated subsidiaries incorporated by
reference in the Registration Statement, are independent registered public
accountants with respect to the Company and its subsidiaries within the meaning
of Regulation S-X under the Act and the rules and regulations thereunder;

(vii) The consolidated financial statements included in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2011 and the
Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31,
2012, which are incorporated by reference in the Pricing Prospectus and the
Prospectus, present fairly, in all material respects, the consolidated financial
position of the Company and its subsidiaries at December 31, 2011 and 2010 and
March 31, 2012, and the consolidated statements of operations and cash flows of
the Company and its subsidiaries for each of the three years in the period ended
December 31, 2011 and for each of the three month periods ended March 31, 2012
and 2011, are in conformity with accounting principles generally accepted in the
United States (“GAAP”) and the applicable accounting requirements of the
Exchange Act and the related rules and regulations adopted by the SEC. The
related financial statement schedule, when considered in relation to the basic
consolidated financial statements taken as a whole, presents fairly in all
material respects the information set forth therein for each of the three years
in the period ended December 31, 2011;

(viii) Since the date as of which information is given in the Pricing
Prospectus, except as otherwise stated therein, (A) there has been no material
adverse change in the financial condition or in the earnings of the Company and
its subsidiaries considered as one enterprise, (B) there have been no
transactions entered into by the Company or any of its subsidiaries, other than
those in the ordinary course of business, which are material with respect to the
Company and its subsidiaries considered as one enterprise, and (C) there has
been no dividend or distribution of any kind declared, paid or made by the
Company on any class of its capital stock not described in the Pricing
Prospectus;

(ix) Each of the Company, Amgen Manufacturing, Limited, a Bermuda corporation
(“Amgen Manufacturing”), Immunex Corporation, a Washington corporation
(“Immunex”), and Amgen USA Inc., a Delaware corporation (together with
Amgen Manufacturing and Immunex, the “Significant
Subsidiaries”), has been duly incorporated or

 

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organized and is validly existing in good standing under the laws of the
jurisdiction in which it is incorporated, chartered or organized with the
corporate power and authority to own or lease, as the case may be, and to
operate its properties and conduct its business as described in the Pricing
Prospectus and Prospectus and is duly qualified to do business as a foreign
corporation or organization and is in good standing under the laws of each
jurisdiction which requires such qualification, except, in each case, where the
failure so to qualify or to be in good standing would not have a material
adverse effect on the financial condition of the Company and its subsidiaries,
considered as one enterprise (a “Material Adverse Effect”);

(x) All the issued and outstanding shares of capital stock of the Significant
Subsidiaries have been duly and validly authorized and issued and are fully paid
and nonassessable, and, except as may be otherwise set forth in the Pricing
Prospectus and Prospectus, all outstanding shares of capital stock of the
Significant Subsidiaries are owned by the Company either directly or through a
wholly-owned subsidiary free and clear of any security interest, mortgage,
pledge, lien, encumbrance, claim or equity; none of the outstanding shares of
capital stock of the Significant Subsidiaries was issued in violation of the
preemptive or similar rights of any securityholder of any Significant
Subsidiary;

(xi) None of the Significant Subsidiaries is currently prohibited, directly
or indirectly, from paying any dividends to the Company, from making any other
distribution on such subsidiary’s capital stock, from repaying to the Company
any loans or advances to such subsidiary from the Company or from transferring
any of such subsidiary’s property or assets to the Company or any other
subsidiary of the Company, except as may be described in or contemplated by the
Pricing Prospectus and Prospectus and except as would not result in a Material
Adverse Effect;

(xii) The consolidated capitalization of the Company as of March 31, 2012 is
as set forth in the Pricing Prospectus and Prospectus in the column entitled
“Actual” under the caption “Capitalization.” The outstanding shares of capital
stock of the Company have been duly and validly authorized and issued and are
fully paid and nonassessable; none of the outstanding shares of capital stock of
the Company was issued in violation of the preemptive or similar rights of any
security holder of the Company;

(xiii) This Agreement has been duly authorized, executed and delivered by the
Company;

(xiv) The Indenture has been duly authorized, executed and delivered by the
Company and, assuming the due authorization, execution and delivery of the
Indenture by the Trustee, is a valid and binding agreement of the Company
enforceable against the Company in accordance with its terms, except (A) to the
extent that a waiver of rights under any usury laws may be unenforceable and as
the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent
conveyance, moratorium or other similar laws now or hereafter in effect relating
to or affecting the enforcement of creditors’ rights and remedies generally and
(B) as rights of acceleration and the availability of equitable remedies may be
limited by equitable principles of general applicability, whether or not
enforcement is sought at law or in equity;

 

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(xv) The Securities have been duly authorized by the Company, and, on the
Closing Date, the Securities will have been duly executed by the Company and,
when authenticated, issued and delivered in the manner provided for in the
Indenture and delivered against payment of the purchase price therefore as
provided in this Agreement, will be the valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, except
(A) to the extent that a waiver of rights under any usury laws may be
unenforceable and as the enforceability thereof may be limited by bankruptcy,
insolvency, fraudulent conveyance, moratorium or other similar laws now or
hereafter in effect relating to or affecting the enforcement of creditors’
rights and remedies generally and (B) as rights of acceleration and the
availability of equitable remedies may be limited by equitable principles of
general applicability, whether or not enforcement is sought at law or in equity.
At the Closing Date, the Securities will be in the form contemplated by, and
will be entitled to the benefits of, the Indenture;

(xvi) The Securities and the Indenture will conform in all material respects
to the respective statements relating thereto contained in the Pricing
Disclosure Package and Prospectus;

(xvii) Neither the Company nor any of its Significant Subsidiaries is in
violation of its charter or by-laws or in default in the performance or
observance of any obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, deed of trust, loan or credit agreement, note,
lease or other agreement or instrument to which the Company or any of its
subsidiaries is a party or by which it or any of them may be bound, or to which
any of the property or assets of the Company or any of its subsidiaries is
subject, except for such defaults that would not result in a Material Adverse
Effect;

(xviii) The execution, delivery and performance by the Company of its
obligations under this Agreement, the Indenture and the Securities will not
contravene any provision of (A) the Amended and Restated Certificate of
Incorporation, or Amended and Restated Bylaws of the Company, (B) any agreement
or other instrument binding upon the Company or its business or assets that is
material to the financial condition of the Company and its subsidiaries,
considered as one enterprise, (C) applicable law and (D) any judgment, order,
decree of any governmental body, agency or court having jurisdiction over the
Company or its business or assets;

(xix) Except as disclosed in the Pricing Prospectus and Prospectus, there is
no action, suit, proceeding, inquiry or investigation before or brought by any
court or governmental agency or body, domestic or foreign, now pending, or, to
the knowledge of the Company, threatened, against or affecting the Company or
any of its subsidiaries which might reasonably be expected to result in a
Material Adverse Effect, or which might reasonably be expected to materially and
adversely affect the properties or assets of the Company or any of its
subsidiaries or the consummation of the transactions contemplated by this
Agreement or the performance by the Company of its obligations hereunder. The
aggregate of all pending legal or governmental proceedings to which the Company
or any of its subsidiaries is a party or of which any of their respective
property or assets is the subject which are not described in the Pricing
Prospectus and Prospectus, including ordinary routine litigation incidental to
the business, could not reasonably be expected to result in a Material Adverse
Effect;

 

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(xx) Except as described in the Pricing Prospectus and Prospectus, the
Company and its Significant Subsidiaries own or possess, or can acquire on
reasonable terms, adequate patents, patent rights, licenses, inventions,
copyrights, know-how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures),
trademarks, service marks and trade names (collectively, “Intellectual
Property”) which in each case are material to the financial condition of the
Company and its subsidiaries, considered as one enterprise, and neither the
Company nor any of its Significant Subsidiaries has received any notice of any
infringement of or conflict with asserted rights of others with respect to any
Intellectual Property, which infringement or conflict, singly or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect;

(xxi) No consent, approval, authorization or order of or qualification with
any governmental body or agency is required for the performance by the Company
of its obligations under this Agreement, the Indenture or in connection with the
offering, issuance and sale of the Securities, except (A) such as have been
already obtained or will have been obtained prior to the Closing Date and (B) as
may be required under the rules and regulations promulgated under the Act and
the Trust Indenture Act and the rules and regulations thereunder, in each case
with respect to transactions contemplated by the Indenture;

(xxii) The Company has all necessary consents, authorizations, approvals,
orders, certificates and permits of and from (collectively, “Governmental
Permits”), and has made all declarations and filings with, all federal,
state, local and other governmental authorities, all self-regulatory
organizations and all courts and other tribunals, to own, lease, license and use
its properties and assets and to conduct its business in the manner described in
the Pricing Prospectus and Prospectus, except to the extent that the failure to
obtain or file would not have a Material Adverse Effect; and the Company has not
received any notice of proceedings relating to the revocation or modification of
any such Governmental Permits which, singly or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect;

(xxiii) Except as described in the Pricing Prospectus and Prospectus and
except as would not, singly or in the aggregate, result in a Material Adverse
Effect, (A) neither the Company nor any of its subsidiaries is in violation of
any federal, state, local or foreign statute, law, rule, regulation, ordinance,
code, policy or rule of common law or any judicial or administrative
interpretation thereof, including any judicial or administrative order, consent,
decree or judgment, relating to pollution or protection of human health, the
environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata) or wildlife, including, without
limitation, laws and regulations relating to the release or threatened release
of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous
substances, petroleum or petroleum products (collectively, “Hazardous
Materials”) or to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials (collectively,
“Environmental Laws”), (B) the Company and its subsidiaries have all
permits, authorizations and approvals required under any applicable
Environmental Laws and are each in compliance with their requirements, (C) there
are no pending or threatened administrative, regulatory or judicial actions,
suits, demands, demand letters, claims, liens, notices of noncompliance or
violation, investigations or proceedings relating to any Environmental Law
against the Company or any of its subsidiaries and (D) there are no events or
circumstances that might reasonably be expected to form the basis of an order

 

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for clean-up or remediation, or an action, suit or proceeding by any private
party or governmental body or agency, against or affecting the Company or any of
its subsidiaries relating to Hazardous Materials or any Environmental Laws;

(xxiv) Neither the Company nor any of its subsidiaries is in violation of any
Federal or state law or regulation relating to occupational safety and health or
to the storage, handling and transportation of hazardous or toxic materials, the
Company and each of its subsidiaries have received all permits, licenses or
other approvals required of them under applicable Federal and state occupational
safety and health laws and Environmental Laws and regulations to conduct their
respective businesses, and the Company and each such subsidiary is in compliance
with all terms and conditions of any such permit, license or approval, except
any such violation of law or regulation, failure to receive required permits,
licenses or other approvals or failure to comply with the terms and conditions
of such permits, licenses or approvals that would not, singly or in the
aggregate, result in a Material Adverse Effect, except as described in or
contemplated by the Pricing Prospectus and Prospectus;

(xxv) The Company and its subsidiaries, taken as a whole, maintain a system
of internal accounting controls sufficient to provide reasonable assurances that
(A) transactions are executed in accordance with management’s general or
specific authorization; (B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
accountability for assets; (C) access to assets is permitted only in accordance
with management’s general or specific authorization; and (D) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences;

(xxvi) The Company is not, and after giving effect to the offering and sale
of the Securities and the application of the proceeds thereof as described in
the Pricing Prospectus and Prospectus, will not be an “investment company,” or
an entity “controlled” by an investment company, as such terms are defined in
the Investment Company Act of 1940, as amended;

(xxvii) The Company and each of its subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as are reasonable and consistent with sound business practice;

(xxviii) To the knowledge of the Company, neither the Company nor any of its
subsidiaries, nor any of the directors, officers, employees, agents or
representatives of the Company or any of its subsidiaries, in conducting the
business of the Company or any of its subsidiaries, has taken any action illegal
under the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”); and
the Company and its subsidiaries have conducted their businesses in compliance
with the FCPA and have instituted and maintained policies and procedures
designed to promote and achieve compliance with the FCPA;

(xxix) (A) (i) At the time of filing the Registration Statement, (ii) at the
time of the most recent amendment thereto, if any, for the purposes of complying
with Section 10(a)(3) of the Act (whether such amendment was by post-effective
amendment, incorporated report filed pursuant to Section 13 or 15(d) of the
Exchange Act or form of prospectus), and (iii)

 

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at the time the Company or any person acting on its behalf (within the
meaning, for this clause only, of Rule 163(c) under the Act) made any offer
relating to the Securities in reliance on the exemption of Rule 163 under the
Act, the Company was a “well-known seasoned issuer” as defined in Rule 405 under
the Act; and (B) at the earliest time after the filing of the Registration
Statement that the Company or another offering participant made a bona fide
offer (within the meaning of Rule 164(h)(2) under the Act) of the Securities,
the Company was not an “ineligible issuer” as defined in Rule 405 under the Act;
and

(xxx) The Company is subject to the reporting requirements of Section 13 or
Section 15(d) of the Exchange Act.

(b) Officer’s Certificate. Any certificate signed by any officer of
the Company and delivered to the Underwriters or counsel for the Underwriters in
connection with the issuance of the Securities shall be deemed a representation
and warranty by the Company, as to matters covered thereby, to the Underwriters.

2. Agreements to Sell and Purchase. (a) The Company hereby agrees to
sell to the several Underwriters, and each Underwriter, upon the basis of the
representations and warranties herein contained, but subject to the conditions
hereinafter stated, agrees, severally and not jointly, to purchase from the
Company the respective principal amount of Securities set forth opposite its
name in Schedule I hereto and the Company and the Underwriters agree that the
Company shall receive 99.471% of the aggregate principal amount of the 2017
Notes, 99.085% of the aggregate principal amount of the 2022 Notes and 99.110%
of the aggregate principal amount of the 2043 Notes, plus accrued interest, in
each case, if any, from the Closing Date.

(b) The Company hereby agrees that, without the prior written consent of the
Representatives on behalf of the Underwriters, it will not, during the period
beginning on the date of this Agreement and continuing to and including the
Closing Date, offer, sell, contract to sell or otherwise dispose of any debt of
the Company or warrants to purchase debt of the Company substantially similar to
the Securities (other than the sale of the Securities under this Agreement).

3. Terms of Offering. Upon the authorization by you of the release of
the Securities, the several Underwriters propose to offer the Securities for
sale upon the terms and conditions set forth in the Pricing Disclosure Package
and Prospectus.

4. Purchase and Delivery. (a) Payment for the Securities shall be made
to the Company in Federal or other funds immediately available in New York City
against delivery of such Securities for the respective accounts of the several
Underwriters at 10:00 a.m., New York City time, on May 15,
2012, or at such other time on the same or such other date as shall be
agreed by the parties. The time and date of such payment are hereinafter
referred to as the “Closing Date.”

(b) Certificates for the Securities, if any, shall be in global form and
registered in the name of Cede & Co., as nominee of the Depository Trust
Company. The certificates evidencing the Securities shall be delivered to the
Trustee on the Closing Date for the respective accounts of the several
Underwriters, with any transfer taxes payable in connection with the transfer of
the Securities to the Underwriters duly paid, against payment of the purchase
price therefor plus accrued interest, if any, to the date of payment and
delivery.

 

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5. Free Writing Prospectuses. (a) (i) The Company represents and
agrees that, other than the final term sheet prepared and filed pursuant to
Section 7(a) hereof, without the prior consent of the Representatives, it has
not made and will not make any offer relating to the Securities that would
constitute a “free writing prospectus” as defined in Rule 405 under the Act;

(ii) each Underwriter represents and agrees that, without the prior consent
of the Company and the Representatives, other than (A) one or more customary
Bloomberg screens to offer the Securities or convey the pricing terms thereof
and (B) one or more term sheets relating to the Securities containing customary
information and conveyed to purchasers of Securities, it has not made and will
not make any offer relating to the Securities that would constitute a free
writing prospectus required to be filed with the Commission; and

(iii) any such free writing prospectus the use of which has been consented to
by the Company and the Representatives (other than the final term sheet prepared
and filed pursuant to Section 7(a) hereof) is listed on Schedule II(a) hereto.

(b) The Company has complied and will comply with the requirements of Rule
433 under the Act applicable to any Issuer Free Writing Prospectus, including
timely filing with the Commission or retention where required and legending.

(c) The Company agrees that if at any time following issuance of an Issuer
Free Writing Prospectus any event occurred or occurs as a result of which such
Issuer Free Writing Prospectus would conflict with the information in the
Registration Statement, the Pricing Prospectus or the Prospectus or would
include an untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances then prevailing, not misleading, the Company will give prompt
notice thereof to the Representatives, and if requested by the Representatives,
will prepare and furnish without charge to each Underwriter an Issuer Free
Writing Prospectus or other document which will correct such conflict, statement
or omission; provided, however, that this representation and warranty
shall not apply to any statements or omissions in an Issuer Free Writing
Prospectus made in reliance upon and in conformity with information furnished in
writing to the Company by an Underwriter through the Representatives expressly
for use therein.

6. Conditions to the Underwriters’ Obligations. The several
obligations of the Underwriters to purchase and pay for the Securities on the
Closing Date are subject to the following conditions:

(a) The Prospectus shall have been filed with the Commission pursuant to Rule
424(b) under the Act within the applicable time period prescribed for such
filing by the rules and regulations under the Act and in accordance with
Section 7(a) hereof; the final term sheet contemplated by Section 7(a) hereof,
and any other material required to be filed by the Company pursuant to Rule
433(d) under the Act, shall have been filed with the Commission within the
applicable time periods prescribed for such filings by Rule 433; no stop

 

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order suspending the effectiveness of the Registration Statement or any part
thereof shall have been issued and no proceeding for that purpose shall have
been initiated or threatened by the Commission and no notice of objection of the
Commission to the use of the Registration Statement or any post-effective
amendment thereto pursuant to Rule 401(g)(2) under the Act shall have been
received; no stop order suspending or preventing the use of the Prospectus or
any Issuer Free Writing Prospectus shall have been initiated or threatened by
the Commission; and all requests for additional information on the part of the
Commission shall have been complied with to your reasonable satisfaction.

(b) Subsequent to the execution and delivery of this Agreement and prior to
the Closing Date:

(i) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a
possible change that does not indicate the direction of the possible change, in
the rating accorded of any of the Company’s securities by any “nationally
recognized statistical rating organization,” as such term is defined for
purposes of Rule 436(g)(2) under the Act; and

(ii) there shall not have been, since the date of this Agreement or since the
respective dates as of which information is given in the Pricing Prospectus and
Prospectus, any material adverse change in the financial condition or in the
earnings of the Company and its subsidiaries, taken as a whole.

(c) The Underwriters shall have received on the Closing Date, a certificate,
dated as of the date of the Closing Date and signed by the chief executive
officer or the chief financial officer of the Company, to the effect set forth
in Section 6(b)(i) and to the effect that (i) the representations and warranties
of the Company contained in this Agreement are true and correct in all material
respects as of the Closing Date and (ii) the Company has complied in all
material respects with all of the agreements and satisfied in all material
respects all of the conditions on its part to be performed or satisfied
hereunder on or before the Closing Date.

The officer signing and delivering such certificate may rely upon the best of
his or her knowledge as to proceedings threatened.

(d) The Underwriters shall have received on the Closing Date an opinion or
opinions and a negative assurances letter of Latham & Watkins LLP, outside
counsel for the Company, dated the date of the Closing Date, substantially in
the forms set forth in Exhibit A.

(e) The Underwriters shall have received on the Closing Date an opinion of
the Company’s general counsel or any assistant general counsel, dated the date
of the Closing Date, substantially in the form set forth in Exhibit B.

(f) The Underwriters shall have received on the Closing Date, an opinion of
Shearman & Sterling LLP, counsel for the Underwriters, dated the date of the
Closing Date, covering the matters set forth in Exhibit C.

 

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(g) The Underwriters and the board of directors of the Company shall have
received on the date hereof, on the effective date of any post-effective
amendment to the Registration Statement filed subsequent to the date of this
Agreement and also on the Closing Date, a letter, dated the respective dates of
delivery thereof, in form and substance reasonably satisfactory to the
Underwriters, from Ernst & Young LLP, independent registered public
accountants, containing statements and information of the type ordinarily
included in accountants’ “comfort letters” to underwriters with respect to the
financial statements and certain financial information contained in or
incorporated by reference into the Registration Statement.

7. Covenants of the Company. In further consideration of the
agreements of the Underwriters contained in this Agreement, the Company
covenants and agrees with each Underwriter as follows:

(a) To prepare the Prospectus in a form approved by you and to file such
Prospectus pursuant to Rule 424(b) under the Act not later than the Commission’s
close of business on the second business day following the date of this
Agreement; to make no further amendment or any supplement to the Registration
Statement, the Basic Prospectus or the Prospectus prior to the Closing Date
which shall be disapproved by you promptly after reasonable notice thereof; to
advise you, promptly after it receives notice thereof, of the time when any
amendment to the Registration Statement has been filed or becomes effective or
any amendment or supplement to the Prospectus has been filed and to furnish you
with copies thereof; to prepare a final term sheet, containing solely a
description of the Securities, in a form approved by you and to file such term
sheet pursuant to Rule 433(d) under the Act within the time required by such
Rule; to file promptly all other material required to be filed by the Company
with the Commission pursuant to Rule 433(d) under the Act; to file promptly all
reports and any definitive proxy or information statements required to be filed
by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d)
of the Exchange Act subsequent to the date of the Prospectus and for so long as
the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule
173(a) under the Act) is required in connection with the offering or sale of the
Securities; to advise you, promptly after it receives notice thereof, of the
issuance by the Commission of any stop order or of any order preventing or
suspending the use of any Preliminary Prospectus or other prospectus in respect
of the Securities, of any notice of objection of the Commission to the use of
the Registration Statement or any post-effective amendment thereto pursuant to
Rule 401(g)(2) under the Act, of the suspension of the qualification of the
Securities for offering or sale in any jurisdiction, of the initiation or
threatening of any proceeding for any such purpose, or of any request by the
Commission for the amending or supplementing of the Registration Statement or
the Prospectus or for additional information; and, in the event of the issuance
of any stop order or of any order preventing or suspending the use of any
Preliminary Prospectus or other prospectus or suspending any such qualification,
to promptly use its commercially reasonable efforts to obtain the withdrawal of
such order; and in the event of any such issuance of a notice of objection,
promptly to take such steps including, without limitation, amending the
Registration Statement or filing a new registration statement, at its own
expense, as may be necessary to permit offers and sales of the Securities by the
Underwriters (references herein to the Registration Statement shall include any
such amendment or new registration statement).

 

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(b) If required by Rule 430B(h) under the Act, to prepare a form of
prospectus in a form approved by you and to file such form of prospectus
pursuant to Rule 424(b) under the Act not later than may be required by Rule
424(b) under the Act; and to make no further amendment or supplement to such
form of prospectus which shall be disapproved by you promptly after reasonable
notice thereof.

(c) If by the third anniversary (the “Renewal Deadline”) of the
initial effective date of the Registration Statement, any of the Securities
remain unsold by the Underwriters, the Company will file, if it has not already
done so and is eligible to do so, a new automatic shelf registration statement
relating to the Securities, in a form reasonably satisfactory to you. If at the
Renewal Deadline the Company is no longer eligible to file an automatic shelf
registration statement, the Company will, if it has not already done so, file a
new shelf registration statement relating to the Securities, in a form
reasonably satisfactory to you and will use its commercially reasonable efforts
to cause such registration statement to become effective within 180 days after
the Renewal Deadline. The Company will take all other action reasonably
necessary or appropriate to permit the public offering and sale of the
Securities to continue as contemplated in the expired registration statement
relating to the Securities. References herein to the Registration Statement
shall include such new automatic shelf registration statement or such new shelf
registration statement, as the case may be.

(d) Prior to 5:00 p.m., New York City time, on the New York business day next
succeeding the date of this Agreement and from time to time, to furnish the
Underwriters with written and electronic copies of the Prospectus in New York
City in such quantities as you may reasonably request, and, if the delivery of a
prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the
Act) is required at any time prior to the expiration of nine months after the
time of issue of the Prospectus in connection with the offering or sale of the
Securities and if at such time any event shall have occurred as a result of
which the Prospectus as then amended or supplemented would include an untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made when such Prospectus (or in lieu thereof, the notice
referred to in Rule 173(a) under the Act) is delivered, not misleading, or, if
for any other reason it shall be necessary during such same period to amend or
supplement the Prospectus or to file under the Exchange Act any document
incorporated by reference in the Prospectus in order to comply with the Act, the
Exchange Act or the Trust Indenture Act, to notify you and upon your request to
file such document and to prepare and furnish without charge to each Underwriter
and to any dealer in securities as many written and electronic copies as you may
from time to time reasonably request of an amended Prospectus or a supplement to
the Prospectus which will correct such statement or omission or effect such
compliance; and in case any Underwriter is required to deliver a prospectus (or
in lieu thereof, the notice referred to in Rule 173(a) under the Act) in
connection with sales of any of the Securities at any time nine months or more
after the time of issue of the Prospectus, upon your request but at the expense
of such Underwriter, to prepare and deliver to such Underwriter as many written
and electronic copies as you may request of an amended or supplemented
Prospectus complying with Section 10(a)(3) of the Act.

(e) To make generally available to its securityholders as soon as
practicable, but in any event not later than sixteen months after the effective
date of the

 

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Registration Statement (as defined in Rule 158(c) under the Act), an earnings
statement of the Company and its subsidiaries (which need not be audited)
complying with Section 11(a) of the Act and the rules and regulations of the
Commission thereunder (including, at the option of the Company, Rule 158).

(f) To pay the required Commission filing fees relating to the Securities
within the time required by Rule 456(b)(1) under the Act without regard to the
proviso therein and otherwise in accordance with Rules 456(b) and 457(r) under
the Act.

(g) To endeavor to qualify the Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions as you shall reasonably
request provided, however, that the Company shall not be required to
(i) qualify as a foreign corporation or as a dealer in securities in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 7(g), (ii) file any general consent to service of process, (iii) subject
itself to taxation in any such jurisdiction if it is not so subject or (iv) make
any changes to its certificate of incorporation or bylaws.

(h) Whether or not the transactions contemplated in this Agreement are
consummated or this Agreement is terminated, to pay or cause to be paid all
expenses incident to the performance of its obligations under this Agreement,
including: (i) the fees, disbursements and expenses of the Company’s counsel and
the Company’s accountants in connection with the registration of the Securities
and all other fees or expenses of the Company in connection with the
preparation, printing, production and filing of the Registration Statement, the
Basic Prospectus, any Preliminary Prospectus, any Issuer Free Writing Prospectus
and the Prospectus and any amendments and supplements thereto and the mailing
and delivering of copies thereof to the Underwriters and dealers, (ii) all costs
and expenses related to the preparation, issuance and delivery of the Securities
to the Underwriters, including any transfer or other taxes payable thereon,
(iii) all expenses in connection with the qualification of the Securities for
offer and sale under state securities laws as provided in Section 7(g) hereof,
including filing fees and the reasonable fees and disbursements of counsel for
the Underwriters in connection with such qualification and in connection with
the preparation of any Blue Sky or legal investment memorandum; (iv) any fees
charged by rating agencies for the rating of the Securities, (v) any filing fees
incident to, and any fees and disbursements of counsel for the Underwriters in
connection with, any required review by the Financial Industry Regulatory
Authority of the terms of the sale of the Securities; (vi) the costs and charges
of the Trustee, and (vii) all other cost and expenses incident to the
performance of the obligations of the Company hereunder for which provision is
not otherwise made in this Section. It is understood, however, that except as
provided in clauses (iii) and (v) of this Section 7(h), and the last paragraph
of Section 10, the Underwriters will pay all of their costs and expenses,
including fees and disbursements of their counsel, transfer taxes payable on
resale of any of the Securities by them and any advertising expenses connected
with any offers they may make.

8. Indemnity and Contribution. (a) The Company will indemnify and hold
harmless each Underwriter against any losses, claims, damages or liabilities,
joint or several, to which such Underwriter may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged
untrue statement of a material fact contained in the Registration

 

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Statement, the Basic Prospectus, any Preliminary Prospectus, the Pricing
Prospectus or the Prospectus, or any amendment or supplement thereto, any Issuer
Free Writing Prospectus or any “issuer information” filed or required to be
filed pursuant to Rule 433(d) under the Act, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
will reimburse such Underwriter for any legal or other expenses reasonably
incurred by it in connection with investigating or defending any such action or
claim as such expenses are incurred; provided, however, that the
Company shall not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in the
Registration Statement, the Basic Prospectus, any Preliminary Prospectus, the
Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or
any Issuer Free Writing Prospectus relating to the Securities, or in any such
amendment or supplement thereto, in reliance upon and in conformity with written
information furnished to the Company by such Underwriter expressly for use
therein.

(b) Each Underwriter will severally and not jointly indemnify and hold
harmless the Company against any losses, claims, damages or liabilities to which
the Company may become subject, under the Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, the Basic Prospectus, any
Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any
amendment or supplement thereto, or any Issuer Free Writing Prospectus, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged
omission was made in the Registration Statement, the Basic Prospectus, any
Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any
amendment or supplement thereto, or any Issuer Free Writing Prospectus relating
to the Securities, in reliance upon and in conformity with written information
furnished to the Company by such Underwriter expressly for use therein; and will
reimburse the Company for any legal or other expenses reasonably incurred by the
Company in connection with investigating or defending any such action or claim
as such expenses are incurred.

(c) As promptly as reasonably practical after receipt by an indemnified party
under paragraph (a) or (b) above of notice of the commencement of any action,
such indemnified party shall, if a claim in respect thereof is to be made
against the indemnifying party under such subsection, notify the indemnifying
party in writing of the commencement thereof; but the omission so to notify the
indemnifying party shall not relieve it of its obligations (i) under paragraph
(a) or (b), as applicable, of this Section 8 unless and only to the extent that
the indemnifying party is materially prejudiced by the failure to notify, or
(ii) from any liability which it may have to any indemnified party otherwise
than under such applicable subsection. In case any such action shall be brought
against any indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, and retain
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may

 

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designate in such proceeding and shall pay the fees and disbursements of such
counsel related to such proceeding. In any such proceeding, any indemnified
party shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such indemnified party unless (1) the
indemnifying party and the indemnified party shall have mutually agreed to the
retention of such counsel or (2) the named parties to any such proceeding
(including any impleaded parties) include both the indemnifying party and the
indemnified party and representation of both parties by the same counsel would,
in the written opinion of legal counsel to the indemnified party, be
inappropriate due to actual or potential differing interests between them.

It is understood that the indemnifying party shall not, in respect of the
legal expenses of any indemnified party in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel) for
all such indemnified parties and that all such fees and expenses shall be
reimbursed as they are incurred. Such firm shall be designated in writing by the
Representatives or, if none of the Representatives is an indemnified party and
is not reasonably likely to become an indemnified party, by the Underwriters
that are indemnified parties, in the case of parties indemnified pursuant to
paragraph (a) above, and by the Company, in the case of parties indemnified
pursuant to paragraph (b) above. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (ii) does not include a
statement as to, or an admission of, fault, culpability or a failure to act, by
or on behalf of any indemnified party.

(d) If the indemnification provided for in this Section 8 is unavailable or
insufficient to hold harmless an indemnified party under subsection (a) or
(b) above in respect of any losses, claims, damages or liabilities (or actions
in respect thereof) referred to therein, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (or actions in respect thereof)
in such proportion as is appropriate to reflect the relative benefits received
by the Company on the one hand and each Underwriter on the other from the
offering of the Securities to which such loss, claim, damage or liability (or
action in respect thereof) relates. If, however, the allocation provided by the
immediately preceding sentence is not permitted by applicable law, then each
indemnifying party shall contribute to such amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the Company on the one hand and
each Underwriter on the other in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and each Underwriter
on the other shall be deemed to be in the same proportion as the total net
proceeds from the sale of Securities (before deducting expenses) received by the
Company bear to the total commissions and discounts received by such Underwriter
in respect thereof. The 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 required to be
stated therein or necessary in

 

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order to make the statements therein not misleading relates to information
supplied by the Company on the one hand or by any Underwriter on the other and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Company and each
Underwriter agree that it would not be just and equitable if contribution
pursuant to this subsection (d) were determined by pro rata allocation (even if
all Underwriters were treated as one entity for such purpose) or by any other
method of allocation which does not take account of the equitable considerations
referred to above in this subsection (d). The amount paid or payable by an
indemnified party as a result of the losses, claims, damages or liabilities (or
actions in respect thereof) referred to above in this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this subsection (d), an Underwriter
shall not be required to contribute any amount in excess of the amount by which
the total price at which the Securities that were offered and sold to the public
through such Underwriter exceeds the amount of any damages which such
Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The obligations of each of the Underwriters under
this subsection (d) to contribute are several in proportion to the respective
purchases made by or through each such Underwriter to which such loss, claim,
damage or liability (or action in respect thereof) relates and are not joint.

(e) The obligations of the Company under this Section 8 shall be in addition
to any liability which the Company may otherwise have and shall extend, upon the
same terms and conditions, to each officer, director, employee, agent or
affiliate of any Underwriter and to each person, if any, who controls any
Underwriter within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act; and the obligations of each Underwriter under this Section 8 shall
be in addition to any liability which such Underwriter may otherwise have and
shall extend, upon the same terms and conditions, to each officer and director
of the Company and to each person, if any, who controls the Company within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act.

9. Termination. This Agreement shall be subject to termination in the
Underwriters’ absolute discretion, by written notice to the Company, if
(a) after the execution and delivery of this Agreement and prior to the Closing
Date (i) trading generally shall have been suspended or materially limited on or
by, as the case may be, any of the New York Stock Exchange, the American Stock
Exchange or the Nasdaq National Market, (ii) trading of any securities of the
Company shall have been suspended on any exchange or in any over-the-counter
market, (iii) a general moratorium on commercial banking activities in New York
shall have been declared by either Federal or New York State authorities, or
(iv) there shall have occurred any outbreak or escalation of hostilities or any
change in financial markets or any calamity or crisis that, in the judgment of
the Underwriters, is material and adverse and (b) in the case of any of the
events specified in clauses (a)(i) through (iv), such event, singly or together
with any other such event, makes it, in the judgment of the Underwriters,
impracticable to market the Securities on the terms and in the manner
contemplated in the Pricing Disclosure Package and Prospectus.

 

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10. Effectiveness; Defaulting Underwriters. This Agreement shall
become effective upon the execution and delivery hereof by the parties hereto.

If, on the Closing Date, any one or more of the Underwriters shall fail or
refuse to purchase Securities that it or they have agreed to purchase hereunder
on such date, and the aggregate principal amount of Securities which such
defaulting Underwriter or Underwriters agreed but failed or refused to purchase
is not more than one-tenth of the aggregate principal amount of Securities to be
purchased on such date, the other Underwriters shall be obligated severally in
the proportions that the principal amount of Securities set forth opposite their
respective names in Schedule I bears to the aggregate principal amount of
Securities set forth opposite the names of all such non-defaulting Underwriters,
or in such other proportions as you may specify, to purchase the Securities
which such defaulting Underwriter or Underwriters agreed but failed or refused
to purchase on such date; provided that in no event shall the principal
amount of Securities that any Underwriter has agreed to purchase pursuant to
this Agreement be increased pursuant to this Section 10 by an amount in excess
of one-ninth of such principal amount of Securities without the written consent
of such Underwriter. If, on the Closing Date any Underwriter or Underwriters
shall fail or refuse to purchase Securities which it or they have agreed to
purchase hereunder on such date and the aggregate principal amount of Securities
with respect to which such default occurs is more than one-tenth of the
aggregate principal amount of Securities to be purchased on such date, and
arrangements satisfactory to you and the Company for the purchase of such
Securities are not made within 36 hours after such default, this Agreement shall
terminate without liability on the part of any non-defaulting Underwriter or of
the Company. In any such case either you or the Company shall have the right to
postpone the Closing Date, but in no event for longer than seven days, in order
that the required changes, if any, in the Prospectus or in any other documents
or arrangements may be effected. Any action taken under this paragraph shall not
relieve any defaulting Underwriter from liability in respect of any default of
such Underwriter under this Agreement.

If this Agreement shall be terminated by the Underwriters, or any of them,
because of any failure or refusal on the part of the Company to comply with the
terms or to fulfill any of the conditions of this Agreement, or if for any
reason the Company shall be unable to perform its obligations under this
Agreement (except if the Company shall be unable to so perform as a result of
any default by any Underwriter as contemplated above), the Company will
reimburse the Underwriters or such Underwriters as have so terminated this
Agreement with respect to themselves, severally, for all out-of-pocket expenses
(including the fees and disbursements of their counsel) reasonably incurred by
such Underwriters in connection with this Agreement or the offering contemplated
hereunder.

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

12. Applicable Law. This Agreement shall be governed by the laws of
the State of New York, including, without limitation, Section 5-1401 of the New
York General Obligations Law.

 

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13. Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

14. Section References. Unless otherwise indicated, references in this
Agreement to sections are to the sections of this Agreement.

15. Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the construction hereof.

16. Notice. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by
any standard form of telecommunication. Notices to the Underwriters shall be
directed to Goldman, Sachs & Co. at 200 West Street, New York, NY 10282,
Attention: Registration Department, to J.P. Morgan Securities LLC at 383 Madison
Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk
(facsimile no. 212-834-6081), to Merrill Lynch, Pierce, Fenner & Smith
Incorporated at One Bryant Park, New York, NY 10036, Attention: High Grade
Transaction Management/Legal (facsimile no. 212-901-7881), and to Morgan
Stanley & Co. LLC at 1585 Broadway, New York, NY 10036, Attention: Global
Capital Markets Syndicate Desk (facsimile no. 212-761-0538), with a copy to
Shearman & Sterling LLP at Four Embarcadero Center, San Francisco,
California 94111 (facsimile no. 415-616-1199), Attention: John D. Wilson;
notices to the Company shall be directed to it at One Amgen Center Drive,
Thousand Oaks, California 91320-1799 (facsimile no. 805-499-8011), Attention:
Corporate Secretary, with a copy to Latham & Watkins LLP, 355 South Grand
Avenue, Los Angeles, California 90071 (facsimile no. 213-891-8763), Attention:
Scott Hodgkins and Latham & Watkins LLP, 885 Third Avenue, New York, New
York 10022 (facsimile no. 212-751-4864), Attention: Greg Rodgers.

In accordance with the requirements of the USA Patriot Act (Title III of Pub.
L. 107-56 (signed into law October 26, 2001)), the Underwriters are required to
obtain, verify and record information that identifies their respective clients,
including the Company, which information may include the name and address of
their respective clients, as well as other information that will allow the
Underwriters to properly identify their respective clients.

17. No Advisory or Fiduciary Relationship. The Company acknowledges
and agrees that (a) the purchase and sale of the Securities pursuant to this
Agreement, including the determination of the offering price of the Securities
and any related discounts and commissions, is an arm’s-length commercial
transaction between the Company, on the one hand, and the several Underwriters,
on the other hand, (b) in connection with the offering contemplated hereby and
the process leading to such transaction each Underwriter is and has been acting
solely as a principal and is not the agent or fiduciary of the Company, or its
stockholders, creditors, employees or any other party, (c) no Underwriter has
assumed or will assume an advisory or fiduciary responsibility in favor of the
Company with respect to the offering contemplated hereby or the process leading
thereto (irrespective of whether such Underwriter has advised or is currently
advising the Company on other matters) and no Underwriter has any obligation to
the Company with respect to the offering contemplated hereby except the
obligations expressly set forth in this Agreement, (d) the Underwriters and
their respective affiliates may be engaged in a

 

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broad range of transactions that involve interests that differ from those of
each of the Company, and (e) the Underwriters have not provided any legal,
accounting, regulatory or tax advice with respect to the offering contemplated
hereby and the Company has consulted its own legal, accounting, regulatory and
tax advisors to the extent it deemed appropriate.

18. Integration. This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Company and the
Underwriters, or any of them, with respect to the subject matter hereof.

[Remainder of page intentionally left blank]

 

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Very truly yours,
AMGEN INC.
By:		/s/ Jonathan M. Peacock
		Name:		Jonathan M. Peacock
		Title:		Executive Vice President and Chief Financial Officer

Signature Page to Underwriting Agreement

 

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Accepted as of the date hereof:
GOLDMAN, SACHS & CO.
By:		/s/ Goldman, Sachs & Co.
		(Goldman, Sachs & Co.)
J.P. MORGAN SECURITIES LLC
By:		/s/ Stephen L. Sheiner
		Name: Stephen L. Sheiner
		Title: Executive Director
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
By:		/s/ Chris Mead
		Name: Chris Mead
		Title: Managing Director
MORGAN STANLEY & CO. LLC
By:		/s/ Yurij Slyz
		Name: Yurij Slyz
		Title: Executive Director

Acting severally on behalf of themselves and the several Underwriters named
in Schedule I hereto.

Signature Page to Underwriting Agreement

 

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SCHEDULE I

 

UNDERWRITERS		PRINCIPAL AMOUNT OF SECURITIES TO BE PURCHASED
2.125% SENIOR NOTES DUE 2017
Goldman, Sachs & Co.		$	225,000,000
J.P. Morgan Securities LLC			225,000,000
Merrill Lynch, Pierce, Fenner & Smith Incorporated			225,000,000
Morgan Stanley & Co. LLC			225,000,000
UBS Securities LLC			87,500,000
Barclays Capital Inc.			37,500,000
Citigroup Global Markets Inc.			37,500,000
Credit Suisse Securities (USA) LLC			37,500,000
Deutsche Bank Securities Inc.			37,500,000
Mitsubishi UFJ Securities (USA), Inc.			37,500,000
HSBC Securities (USA) Inc.			25,000,000
SMBC Nikko Capital Markets Limited			25,000,000
Wells Fargo Securities, LLC			25,000,000
Total:		$	1,250,000,000
3.625% SENIOR NOTES DUE 2022
Goldman, Sachs & Co.		$	135,000,000
J.P. Morgan Securities LLC			135,000,000
Merrill Lynch, Pierce, Fenner & Smith Incorporated			135,000,000
Morgan Stanley & Co. LLC			135,000,000
UBS Securities LLC			52,500,000
Barclays Capital Inc.			22,500,000
Citigroup Global Markets Inc.			22,500,000
Credit Suisse Securities (USA) LLC			22,500,000
Deutsche Bank Securities Inc.			22,500,000
Mitsubishi UFJ Securities (USA), Inc.			22,500,000
HSBC Securities (USA) Inc.			15,000,000
SMBC Nikko Capital Markets Limited			15,000,000
Wells Fargo Securities, LLC			15,000,000
Total:		$	750,000,000
5.375% SENIOR NOTES DUE 2043
Goldman, Sachs & Co.		$	180,000,000
J.P. Morgan Securities LLC			180,000,000
Merrill Lynch, Pierce, Fenner & Smith Incorporated			180,000,000
Morgan Stanley & Co. LLC			180,000,000
UBS Securities LLC			70,000,000
Barclays Capital Inc.			30,000,000
Citigroup Global Markets Inc.			30,000,000
Credit Suisse Securities (USA) LLC			30,000,000
Deutsche Bank Securities Inc.			30,000,000
Mitsubishi UFJ Securities (USA), Inc.			30,000,000
HSBC Securities (USA) Inc.			20,000,000
SMBC Nikko Capital Markets Limited			20,000,000
Wells Fargo Securities, LLC			20,000,000
Total:		$	1,000,000,000

 

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SCHEDULE II

(a) Issuer Free Writing Prospectuses not included in the Pricing Disclosure
Package:

None.

(b) Additional Documents Incorporated by Reference:

None.