VARIABLE TERM ACCELERATED SHARE REPURCHASE TRANSACTION

Exhibit 10.87

VARIABLE TERM ACCELERATED SHARE REPURCHASE TRANSACTION

To:

Amgen Inc.

One Amgen Center Drive

Thousand Oaks, CA ###-###-####

From:

Lehman Brothers, Inc. acting as Agent

Lehman Brothers OTC Derivatives Inc., acting as Principal

745 Seventh Avenue

New York, New York 10019

Attention: Andrew Yare - Transaction Management Group

Facsimile No.: (646)  ###-###-#### (United States of America)

Telephone No.: (646)  ###-###-####

Dear Sirs:

This letter agreement (this “Confirmation”) confirms the terms and conditions of the variable term accelerated share repurchase transaction (the “Transaction”) entered into between Amgen Inc. (“Counterparty”) and Lehman Brothers OTC Derivatives Inc. (“Bank”), on the Trade Date specified below. This Confirmation constitutes a “Confirmation” under the Agreement specified below. This Confirmation is sent on behalf both Bank and Lehman Brothers Inc. (“Agent”). Bank is not a member of the Securities Investor Protection Corporation.

This Confirmation shall supplement, form a part of, and be subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement (Multicurrency – Cross Border), as if, on the Trade Date hereof, Bank and Counterparty had executed that agreement (but without any Schedule other than the provisions in Section 16 of this Confirmation). In the event of any inconsistency between the Definitions and the Agreement, the Definitions will govern. In the event of any inconsistency between this Confirmation, on the one hand, and the Definitions or the Agreement, on the other hand, this Confirmation will govern. For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

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If, on any day, any delivery or receipt of Shares by Bank is not made, in whole or in part, as a result of this provision, the respective obligations of Counterparty and Bank to make or accept such receipt or delivery shall not be extinguished and such receipt or delivery shall be effected over time as promptly as practicable after Bank determines, in a commercially reasonable manner, that such receipt or delivery would not result in its ultimate parent entity directly or indirectly beneficially owning in excess of 9.0% of the outstanding Shares or any other class of voting securities of Counterparty.

Upon request by Bank Group, Counterparty agrees to promptly remove, or cause to be removed, any legends referring to any transfer restrictions from such Unregistered Shares upon delivery by Bank Group to Counterparty of a seller’s representation letter in the form customarily delivered by Bank Group in connection with resales of restricted securities pursuant to Rule 144 under the

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Securities Act, together with any supporting documentation which shall be required by Counterparty in its reasonable, good faith discretion (which may include an opinion of counsel); provided that, at the time of such request, Bank Group has satisfied all holding period and other requirements of Rule 144 applicable to Bank Group.

Notwithstanding anything to the contrary in this Confirmation, at the election of Bank Group by notice to Counterparty no later than two Exchange Business Days prior to the Scheduled Termination Date (or in the case of an Accelerated Termination Date, no later than the time of designation thereof), any delivery of Shares by Counterparty as part of the Counterparty Share Delivery Amount or pursuant to this Section 3 shall comply with the terms of Annex A hereof.

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For the avoidance of doubt, “Merger Transaction” in this Section 5.6 means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv).

Notwithstanding any other provision of this Confirmation, the Definitions or the Agreement to the contrary, in calculating any adjustment pursuant to Article 11 of the Definitions or any amount payable pursuant to Article 12 of the Definitions or Section 6 of the Agreement, the Calculation Agent shall not take into account (i) changes to stock loan rates, (ii) any dividends or (iii) any costs associated with hedging by the Bank since the Trade Date.

Counterparty represents that it is not engaged as of the Trade Date in a distribution, as such term is used in Regulation M under the Exchange Act, other than a distribution referred to in Rules 102(b) and 102(c) of Regulation M (a “Distribution”). If on any day prior to the second Scheduled Trading Day immediately following the last day of the later of the Price Adjustment Period or the Cash Settlement Pricing Period, as the case may be, Counterparty or any of its affiliates or agents makes a Distribution of Shares or any security for which the Shares are a reference security (as defined in Regulation M) that would, in the view of Bank, preclude Counterparty from purchasing Shares or cause any such purchases to violate any law, rule or regulation, Counterparty shall provide to Bank at least one Scheduled Trading Day’s notice of the first day of the “restricted period” (as defined in Regulation M promulgated under the Exchange Act) corresponding to such Distribution and use reasonable efforts to cause such Distribution to be completed or otherwise terminated as soon as reasonably practicable given the circumstances of the Distribution. Bank may, in its good faith reasonable discretion, designate such day a Valuation Disruption Day and, in connection with such designation, extend the Price Adjustment Period or the Cash Settlement Pricing Period, as applicable, by one Valuation Date for each Valuation Date that such “restricted period” corresponding to such Distribution continues.

Counterparty hereby represents and warrants to Bank that:

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Bank hereby represents and warrants to Counterparty that it is a corporation incorporated under the laws of the State of Delaware. Any successor entity to Bank shall make such representations and provide such documents as are necessary to ensure that any payments made pursuant to this transaction are free of U.S. withholding tax.

(a) Counterparty shall not at any time prior to the later of (x) the Settlement Date and (y) any Cash Settlement Date communicate, directly or indirectly, any material nonpublic information concerning itself or the Shares or purchases or sales of Shares by Bank Group to any Relevant Bank Personnel known by Counterparty. For purposes hereof, “Relevant Bank Personnel” means any

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employee of Bank Group, except employees that Bank has notified Counterparty in writing are not Relevant Bank Personnel.

Notwithstanding anything to the contrary in the Agreement, Bank may assign or transfer its rights or obligations under the Transaction, in whole or in part, to any of its affiliates without the prior written consent of Counterparty, provided that the senior unsecured debt rating (“Credit Rating”) of such affiliate (or any guarantor of its obligations under the transferred Transaction), both prior to and after giving effect to the assignment or transfer, is equal to or greater than the Credit Rating of Bank, as specified by Standard & Poor’s Rating Services or Moody’s Investors Service, Inc., at the time of such assignment or transfer and as of the Trade Date and provided further that Counterparty shall not incur any additional costs, expenses or other economic loss (including any costs or expenses relating to any additional withholding) as a result of any such assignment or transfer.

Notwithstanding any provision in this Confirmation, 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.

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(ii) Credit Support Provider: With respect to Bank, Lehman Brothers Holdings Inc. With respect to Counterparty, none.

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

Amgen Inc.

One Amgen Center Drive

Thousand Oaks, CA ###-###-####

Attention: Pamela M. G. Wapnick

Facsimile No.: (805)  ###-###-####

Telephone No.: (805)  ###-###-####

Lehman Brothers, Inc. acting as Agent

Lehman Brothers OTC Derivatives Inc., acting as Principal

745 Seventh Avenue

New York, New York 10019

Attention: Andrew Yare - Transaction Management Group

Facsimile No.: (646)  ###-###-#### (United States of America)

Telephone No.: (646)  ###-###-####

With a copy to:

Lehman Brothers, Inc.

745 Seventh Avenue

New York, New York 10019

Attention: Steve Roti

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Facsimile No.: (917)  ###-###-####

Telephone No.: (212)  ###-###-####

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Please confirm that the foregoing correctly sets forth the terms of our agreement by signing and returning to us a copy of this Confirmation.

Agreed to as of the date first above written.

SCHEDULE I

Schedule I-1

ANNEX A

Share Delivery Conditions

If Bank has elected that this Annex A applies to the delivery of Shares by Counterparty:

1. In the case of Net Share Settlement, Counterparty shall deliver to Bank on the Cash Settlement Date a number of Shares equal to a number of Shares with a value equal to the Cash Settlement Amount based on the market value of the Shares on the Cash Settlement Date. In the case of any delivery of Shares (or Alternative Termination Delivery Units) pursuant to Section 3.1, Counterparty shall deliver to Bank on the date on which the Payment Amount is due the number of Shares (or Alternative Termination Delivery Units, which are referred to collectively in this Annex A as “Shares”) with a value equal to the Payment Amount based on the market value of the Shares (or such Alternative Termination Property) as of the Early Termination Date or the date as of which the Cancellation Amount is determined, as the case may be, as determined by the Calculation Agent.

Notwithstanding anything in this Annex or the Confirmation to the contrary, if Registered Offering is not applicable, the number of Shares to be delivered pursuant to the immediately preceding sentence shall be increased to reflect a commercially reasonable liquidity discount, as determined by the Calculation Agent. In no event, however, shall the number of Shares to be delivered pursuant to this Annex A exceed the Maximum Number of Shares.

2. Bank or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Shares comprising the Shares delivered by Counterparty pursuant to Net Share Settlement or Section 3.1 (“Offered Shares”) and any Additional Shares delivered by Counterparty to Bank pursuant to Paragraph 3 below, commencing on the Cash Settlement Date or the Early Termination Date or other date of cancellation, as applicable, and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by Bank, is equal to the Cash Settlement Amount or Payment Amount, as the case may be (such date, the “Final Resale Date”). If the proceeds of any sale(s) made by Bank or any underwriter(s), net of any fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the Cash Settlement Amount or the Payment Amount, as the case may be, Bank will refund, in U.S. Dollars, such excess to Counterparty on the date that is three (3) Clearance System Business Days following the Final Resale Date, and, if any portion of the Offered Shares remains unsold, Bank shall return to Buyer on that date such unsold Shares.

3. If the Calculation Agent determines that the Net Proceeds received from the sale of Offered Shares or any Additional Shares (if any) pursuant to this Paragraph 3 are less than the Cash Settlement Amount or the Payment Amount, as the case may be, (the amount in U.S. Dollars by which the Net Proceeds are less than the Counterparty Share Delivery Amount or the Payment Amount, as the case may be, being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to Bank a notice of Counterparty’s election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares. If Counterparty elects to deliver to Bank additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions set forth in Paragraph 4 (the “Additional Shares”) on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall. Such Additional Shares shall be sold by Bank or any underwriter(s) in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Additional Shares is less than the

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Cash Settlement Amount or the Payment Amount, as the case may be, then Counterparty shall, at its election, either make such cash payment to Bank or deliver to Bank further Additional Shares until such Shortfall has been reduced to zero. If the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Additional Shares exceeds the Cash Settlement Amount or the Payment Amount, as the case may be, then Bank will refund, in U.S. Dollars, such excess to Counterparty on the date that is three (3) Currency Business Days following the relevant Final Resale Date and, if any portion of the Offered Shares or the Additional Shares remains unsold, Bank shall return to Counterparty on the date that is two (2) Clearance System Business Days following the Final Resale Date such unsold Shares.

4. Counterparty shall use efforts commercially reasonable in its judgment to effect, at Counterparty’s election, either a Registered Offering or an Exempt Offering:

(i) If Registered Offering is elected, then Shares shall be sold by Bank or any underwriter(s) only pursuant to an effective Registration Statement (a “Registered Offering”). Counterparty may elect Registered Offering only if all of the following conditions are met:

(a) a registration statement covering public resale of such Shares by Bank or any underwriter(s) (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and have become effective on or prior to the Price Adjustment Period Termination Date (or, with respect to Shares delivered pursuant to Section 3 of the Confirmation, the Merger Date, the Tender Offer Date or the date of the occurrence of the Nationalization, Insolvency, Delisting, Additional Disruption Event or the Early Termination Date (as the case might be)) (the “Registration Date”), and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Shares (including any prospectus supplement thereto, the “Prospectus”) shall have been delivered to Bank or any underwriter(s), in such quantities as Bank or such underwriter(s) shall reasonably have requested, on or prior to the Registration Date;

(b) the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be reasonably satisfactory to Bank;

(c) as of or prior to the Registration Date, Bank and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities and the results of such investigation are satisfactory to Bank, in its discretion;

(d) an opinion of counsel for Counterparty and a “cold comfort” letter signed by the independent public accountants who have issued a report on Counterparty’s financial statements included in such Registration Statement shall have been delivered to Bank or its affiliates, each addressed to Bank and any underwriter(s), and each in form and substance satisfactory to Bank and any such underwriter and their respective counsel covering substantially the same matters with respect to such Shares and the offering, sale and issuance thereof and the financial statements of Counterparty as are customarily covered in opinions of Counterparty’s counsel and in accountants’ letters delivered to underwriter(s) in underwritten public offerings of securities and, in the case of the accountants’ letter, such other financial matters as Bank or its affiliates may have reasonably requested; and

(e) as of the Registration Date, an agreement (the “Underwriting Agreement”) shall have been entered into between Counterparty and Bank or any underwriter(s) in connection with

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the public resale of the Shares by Bank or any underwriter(s) substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance satisfactory to Bank, which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating to the indemnification of, and contribution in connection with the liability of, Bank and its affiliates.

(ii) If Exempt Offering is elected, then Shares shall be sold by Bank or any underwriter(s) pursuant to an offering that is exempt from the registration requirement of the Securities Act (an “Exempt Offering”) and Counterparty may elect Exempt Offering only if (a) as of or prior to the Registration Date, Bank and any potential purchaser of any such shares from Bank (or any affiliate of Bank designated by Bank) identified by Bank shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them); (b) as of the Registration Date, an agreement (a “Private Placement Agreement”) shall have been entered into between Counterparty and Bank (or any affiliate of Bank designated by Bank) in connection with the private placement of such shares by Counterparty to Bank (or any such affiliate) and the private resale of such shares by Bank (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance reasonably satisfactory to Bank, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating to the indemnification of, and contribution in connection with the liability of, Bank and its affiliates, and shall provide for the payment by Counterparty of all reasonable fees and expenses in connection with such resale, including all reasonable fees and expenses of counsel for Bank or an affiliate thereof, and shall contain representations, warranties and agreements of Counterparty reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; (c) Counterparty shall either (x) represent that it is not aware of any material non-public information regarding Counterparty or the Shares as of the date it elects an Exempt Offering, or (y) before any purchasers decide to purchase the Shares, enter into confidentiality agreements with such purchasers relating to any material non-public information regarding Counterparty or the Shares; and (d) Counterparty acknowledges that any Shares sold pursuant to an Exempt Offering may be sold at prices that are less than the prices that might otherwise be available if such Shares were to be sold pursuant to a registered public offering or at prices observed in the secondary market.

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