Document:

Exhibit 10.58

 

AMYLIN PHARMACEUTICALS, INC.

2003 NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN

 

STOCK OPTION AGREEMENT

(NONSTATUTORY STOCK OPTION)

 

Pursuant to your Stock Option
Grant Notice (“Grant Notice”) and this Stock Option Agreement, Amylin
Pharmaceuticals, Inc. (the “Company”) has granted you an option pursuant to the
Company’s 2003 Non-Employee Directors’ Stock Option Plan (the “Plan”) to
purchase the number of shares of the Company’s Common Stock indicated in your
Grant Notice at the exercise price indicated in your Grant Notice.  Options granted under the Plan are issued
under the Company’s 2001 Equity Incentive Plan (the “Incentive Plan”), and any
shares of the Company’s Common Stock issued upon exercise of your option will
be issued out of shares reserved for issuance under the Incentive Plan.  Defined terms not explicitly defined in this
Stock Option Agreement but defined in the Incentive Plan shall have the same
definitions as in the Incentive Plan except to the extent otherwise defined in
the Plan.

 

The details of your option are
as follows:

 

1.                                      VESTING. 
Subject to the limitations contained herein, your option will
vest as set forth in the Plan, provided that vesting will cease upon the
termination of your Continuous Service.

 

2.                                      NUMBER OF SHARES AND EXERCISE PRICE.  The number of shares of Common
Stock subject to your option and your exercise price per share referenced in
your Grant Notice may be adjusted from time to time for capitalization
adjustments, as provided in the Plan.

 

3.                                      METHOD OF PAYMENT.  Payment of the exercise price is due in full upon
exercise of all or any part of your option. 
You may elect to make payment of the exercise price in cash or by check
or in any other manner permitted by your Grant Notice, which may include one or
more of the following:

 

(a)                                  In
the Company’s sole discretion at the time your option is exercised and provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, pursuant to a program developed under
Regulation T as promulgated by the Federal Reserve Board that, prior to the
issuance of Common Stock, results in either the receipt of cash (or check) by
the Company or the receipt of irrevocable instructions to pay the aggregate
exercise price to the Company from the sales proceeds.

 

(b)                                  Provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, by delivery of already-owned shares of
Common Stock either that you have held for the period required to avoid a
charge to the Company’s reported earnings (generally six months) or that you
did not acquire, directly or indirectly from the Company, that are owned free
and clear of any liens, claims, encumbrances or security interests, and that
are valued at Fair Market Value on the date of exercise.  “Delivery” for these purposes, in the sole
discretion of the Company at the time you exercise your option,

 

1

 

shall include delivery to
the Company of your attestation of ownership of such shares of Common Stock in
a form approved by the Company. 
Notwithstanding the foregoing, you may not exercise your option by
tender to the Company of Common Stock to the extent such tender would violate
the provisions of any law, regulation or agreement restricting the redemption
of the Company’s stock.

 

(c)                                  Pursuant
to the following deferred payment alternative:

 

(i)                                    Not
less than one hundred percent (100%) of the aggregate exercise price, plus
accrued interest, shall be due (i) on the date designated by the Company in its
sole and absolute discretion but not to exceed four (4) years from date of
exercise, or (ii) at the Company’s election, upon termination of your
Continuous Service.

 

(ii)                                Interest
shall be compounded at least annually and shall be charged at the market rate
of interest necessary to avoid a charge to earnings for financial accounting
purposes.

 

(iii)                            At
any time that the Company is incorporated in Delaware, payment of the Common
Stock’s “par value,” as defined in the Delaware General Corporation Law, shall
be made in cash and not by deferred payment.

 

(iv)                               In
order to elect the deferred payment alternative, you must, as a part of your
written notice of exercise, give notice of the election of this payment alternative
and, in order to secure the payment of the deferred exercise price to the
Company hereunder, if the Company so requests, you must tender to the Company a
promissory note and a security agreement covering the purchased shares of
Common Stock, both in form and substance satisfactory to the Company, or such
other or additional documentation as the Company may request.

 

4.                                      WHOLE SHARES. 
You may exercise your option only for whole shares of Common
Stock.

 

5.                                      SECURITIES LAW COMPLIANCE.  Notwithstanding anything to the
contrary contained herein, you may not exercise your option unless the shares
of Common Stock issuable upon such exercise are then registered under the
Securities Act or, if such shares of Common Stock are not then so registered,
the Company has determined that such exercise and issuance would be exempt from
the registration requirements of the Securities Act.  The exercise of your option must also comply with other
applicable laws and regulations governing your option, and you may not exercise
your option if the Company determines that such exercise would not be in
material compliance with such laws and regulations.

 

6.                                      TERM.  You
may not exercise your option before the commencement of its term or after its
term expires.  The term of your option
commences on the Date of Grant and expires upon the earliest of the following:

 

(a)                                  subject
to Section 6(f), three (3) months after the termination of your Continuous
Service for any reason other than your Disability or death, provided that if
during any part of such three (3) month period your option is not exercisable
solely because of the

 

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condition set forth in
the preceding paragraph relating to “Securities Law Compliance,” your option
shall not expire until the earlier of the Expiration Date or until it shall
have been exercisable for an aggregate period of three (3) months after the
termination of your Continuous Service;

 

(b)                                  subject
to Section 6(f), twelve (12) months after the termination of your
Continuous Service due to your Disability;

 

(c)                                  subject
to Section 6(f), twelve (12) months after your death if you die either
during your Continuous Service or within three (3) months after your Continuous
Service terminates;

 

(d)                                  the
Expiration Date indicated in your Grant Notice;

 

(e)                                  the
day before the tenth (10th) anniversary of the Date of Grant; or

 

(f)                                    in
the event that your Continuous Service terminates without Cause (as defined
below) or because of your Disability or death, in any such case at a time when
you are 55 years old or older and have Continuous Service of 5 years or more,
then, to the extent you were entitled to exercise your option at the date of
such termination, your option will expire upon the earliest of the fifth
anniversary of such date, the Expiration Date indicated in your Grant Notice,
or the day before the tenth (10th) anniversary of the Date of Grant.

 

For purposes of this
Section 6(f) only, “Cause” means that, in the reasonable determination of
the Company, you have (i) been convicted of or pleaded guilty or nolo
contendere to a felony or any crime involving moral turpitude or
dishonesty; (ii) participated in a fraud or act of dishonesty against the
Company; (iii) willfully and materially breached a Company policy; (iv)
intentionally damaged the Company’s property; (v) willfully and materially
breached your Proprietary Information and Inventions Agreement with the
Company; (vi) engaged in conduct that, in the reasonable determination of the
Company, demonstrates gross unfitness to serve; or (vii) repeatedly failed to
satisfactorily perform job duties to which you previously agreed in
writing.  The conduct described under
clauses (iii), (vi) and (vii) above will only constitute Cause if such conduct
is not cured within 90 days after your receipt of written notice from the
Company or the Board specifying the particulars of the conduct that may
constitute Cause.

 

7.                                      EXERCISE.

 

(a)                                  You
may exercise the vested portion of your option during its term by delivering a
Notice of Exercise (in a form designated by the Company) together with the
exercise price to the Secretary of the Company, or to such other person as the
Company may designate, during regular business hours, together with such
additional documents as the Company may then require.

 

(b)                                  By
exercising your option you agree that, as a condition to any exercise of your
option, the Company may require you to enter into an arrangement providing for
the payment by you to the Company of any tax withholding obligation of the Company
arising by reason of (1) the exercise of your option, (2) the lapse of any
substantial risk of forfeiture to

 

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which the shares of
Common Stock are subject at the time of exercise, or (3) the disposition of
shares of Common Stock acquired upon such exercise.

 

8.                                      TRANSFERABILITY.  Your option is not transferable, except by will or by
the laws of descent and distribution, and is exercisable during your life only
by you.  Notwithstanding the foregoing,
by delivering written notice to the Company, in a form satisfactory to the
Company, you may designate a third party who, in the event of your death, shall
thereafter be entitled to exercise your option.

 

9.                                      OPTION NOT A SERVICE CONTRACT.  Your option is not a service
contract, and nothing in your option shall be deemed to create in any way
whatsoever any obligation on your part to continue in the service of the
Company as a Director, or of the Company to continue your service as a
Director.  Nothing in your option shall
obligate the Company or an Affiliate, their respective stockholders, Boards of
Directors, Officers or Employees to continue your relationship with the Company
as a Director.

 

10.                               WITHHOLDING OBLIGATIONS.

 

(a)                                  At
the time you exercise your option, in whole or in part, or at any time
thereafter as requested by the Company, you hereby authorize withholding from
payroll and any other amounts payable to you, and otherwise agree to make
adequate provision for (including by means of a “cashless exercise” pursuant to
a program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or
an Affiliate, if any, which arise in connection with your option.

 

(b)                                  Upon
your request and subject to approval by the Company, in its sole discretion,
and compliance with any applicable conditions or restrictions of law, the
Company may withhold from fully vested shares of Common Stock otherwise
issuable to you upon the exercise of your option a number of whole shares of
Common Stock having a Fair Market Value, determined by the Company as of the
date of exercise, not in excess of the minimum amount of tax required to be
withheld by law.  If the date of
determination of any tax withholding obligation is deferred to a date later
than the date of exercise of your option, share withholding pursuant to the
preceding sentence shall not be permitted unless you make a proper and timely
election under Section 83(b) of the Code, covering the aggregate number of
shares of Common Stock acquired upon such exercise with respect to which such
determination is otherwise deferred, to accelerate the determination of such tax
withholding obligation to the date of exercise of your option.  Notwithstanding the filing of such election,
shares of Common Stock shall be withheld solely from fully vested shares of
Common Stock determined as of the date of exercise of your option that are
otherwise issuable to you upon such exercise. 
Any adverse consequences to you arising in connection with such share
withholding procedure shall be your sole responsibility.

 

(c)                                  You
may not exercise your option unless the tax withholding obligations of the
Company and/or any Affiliate are satisfied. 
Accordingly, you may not be able to exercise your option when desired
even though your option is vested, and the Company shall have no

 

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obligation to issue a
certificate for such shares of Common Stock or release such shares of Common
Stock from any escrow.

 

11.                               NOTICES. 
Any notices provided for in your option or the Plan shall be
given in writing and shall be deemed effectively given upon receipt or, in the
case of notices delivered by mail by the Company to you, five (5) days after
deposit in the United States mail, postage prepaid, addressed to you at the
last address you provided to the Company.

 

12.                               GOVERNING PLAN DOCUMENT.  Your option is subject to all the
provisions of the Incentive Plan except to the extent otherwise provided for in
the Plan, the respective provisions of which are hereby made a part of your
option, and is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Incentive Plan except to the extent otherwise provided for in the Plan or
any amendments, rules and regulations which may from time to time be
promulgated and adopted pursuant to the Plan. 
In the event of any conflict between the provisions of your option and
those of the Incentive Plan or the Plan, as applicable, the provisions of the
Incentive Plan or the Plan shall control, as the case may be.

 

5Exhibit 10.59

 

Amylin
Pharmaceuticals, Inc.

2001 Equity Incentive Plan

Stock
Option Agreement

(Incentive Stock Option or Nonstatutory Stock Option)

 

Pursuant to your Stock Option Grant Notice (“Grant Notice”) and this
Stock Option Agreement, Amylin Pharmaceuticals, Inc. (the “Company”) has
granted you an option under its 2001 Equity Incentive Plan (the “Plan”) to
purchase the number of shares of the Company’s Common Stock indicated in your
Grant Notice at the exercise price indicated in your Grant Notice.  Defined terms not explicitly defined in this
Stock Option Agreement but defined in the Plan shall have the same definitions
as in the Plan.

 

The details of your option are as follows:

 

1.                                      Vesting.  Subject
to the limitations contained herein, your option will vest as provided in your
Grant Notice, provided that vesting will cease upon the termination of your
Continuous Service.

 

2.                                      Number of Shares and Exercise Price. 
The number of shares of Common Stock subject to your
option and your exercise price per share referenced in your Grant Notice may be
adjusted from time to time for capitalization adjustments, as provided in the
Plan.

 

3.                                      Exercise Prior to Vesting (“Early Exercise”).  If permitted in your Grant Notice (i.e., the
“Exercise Schedule” indicates that “Early Exercise” of your option is
permitted) and subject to the provisions of your option, you may elect at any
time that is both (i) during the period of your Continuous Service and (ii)
during the term of your option, to exercise all or part of your option,
including the nonvested portion of your option; provided, however, that:

 

(a)                                  a partial exercise of
your option shall be deemed to cover first vested shares of Common Stock and
then the earliest vesting installment of unvested shares of Common Stock;

 

(b)                                  any shares of Common
Stock so purchased from installments that have not vested as of the date of
exercise shall be subject to the purchase option in favor of the Company as
described in the Company’s form of Early Exercise Stock Purchase Agreement;

 

(c)                                  you shall enter into
the Company’s form of Early Exercise Stock Purchase Agreement with a vesting
schedule that will result in the same vesting as if no early exercise had
occurred; and

 

(d)                                  if your option is an
incentive stock option, then, as provided in the Plan, to the extent that the
aggregate Fair Market Value (determined at the time of grant) of the shares of
Common Stock with respect to which your option plus all other incentive stock
options you hold are exercisable for the first time by you during any calendar
year (under all plans of the Company and its Affiliates) exceeds one hundred
thousand dollars ($100,000), your option(s) or portions thereof that exceed
such limit (according to the order in which they were granted) shall be treated
as nonstatutory stock options.

 

1

 

4.                                      Method of Payment.  Payment
of the exercise price is due in full upon exercise of all or any part of your
option.  You may elect to make payment
of the exercise price in cash or by check or in any other manner permitted by
your Grant Notice, which may include one or more of the following:

 

(a)                                  In the Company’s sole
discretion at the time your option is exercised and provided that at the time
of exercise the Common Stock is publicly traded and quoted regularly in The
Wall Street Journal, pursuant to a program developed under Regulation T as
promulgated by the Federal Reserve Board that, prior to the issuance of Common
Stock, results in either the receipt of cash (or check) by the Company or the
receipt of irrevocable instructions to pay the aggregate exercise price to the
Company from the sales proceeds.

 

(b)                                  Provided that at the
time of exercise the Common Stock is publicly traded and quoted regularly in
The Wall Street Journal, by delivery of already-owned shares of Common Stock
either that you have held for the period required to avoid a charge to the
Company’s reported earnings (generally six months) or that you did not acquire,
directly or indirectly from the Company, that are owned free and clear of any
liens, claims, encumbrances or security interests, and that are valued at Fair
Market Value on the date of exercise. 
“Delivery” for these purposes, in the sole discretion of the Company at
the time you exercise your option, shall include delivery to the Company of
your attestation of ownership of such shares of Common Stock in a form approved
by the Company.  Notwithstanding the
foregoing, you may not exercise your option by tender to the Company of Common
Stock to the extent such tender would violate the provisions of any law,
regulation or agreement restricting the redemption of the Company’s stock.

 

(c)                                  Pursuant to the
following deferred payment alternative:

 

(i)                                    Not less than one
hundred percent (100%) of the aggregate exercise price, plus accrued interest,
shall be due (i) on the date designated by the Company in its sole and absolute
discretion but not to exceed four (4) years from date of exercise, or (ii) at
the Company’s election, upon termination of your Continuous Service.

 

(ii)                                Interest shall be
compounded at least annually and shall be charged at the market rate of
interest necessary to avoid a charge to earnings for financial accounting
purposes.

 

(iii)                            At any time that the
Company is incorporated in Delaware, payment of the Common Stock’s “par value,”
as defined in the Delaware General Corporation Law, shall be made in cash and
not by deferred payment.

 

(iv)                               In order to elect the
deferred payment alternative, you must, as a part of your written notice of
exercise, give notice of the election of this payment alternative and, in order
to secure the payment of the deferred exercise price to the Company hereunder,
if the Company so requests, you must tender to the Company a promissory note
and a security agreement covering the purchased shares of Common Stock, both in
form and substance satisfactory to the Company, or such other or additional
documentation as the Company may request.

 

2

 

5.                                      Whole Shares.  You
may exercise your option only for whole shares of Common Stock.

 

6.                                      Securities Law Compliance.  Notwithstanding
anything to the contrary contained herein, you may not exercise your option
unless the shares of Common Stock issuable upon such exercise are then registered
under the Securities Act or, if such shares of Common Stock are not then so
registered, the Company has determined that such exercise and issuance would be
exempt from the registration requirements of the Securities Act.  The exercise of your option must also comply
with other applicable laws and regulations governing your option, and you may
not exercise your option if the Company determines that such exercise would not
be in material compliance with such laws and regulations.

 

7.                                      Term.  You may
not exercise your option before the commencement of its term or after its term
expires.  The term of your option
commences on the Date of Grant and expires upon the earliest of the following:

 

(a)                                  subject to
Section 7(f), three (3) months after the termination of your Continuous
Service for any reason other than your Disability or death, provided that if
during any part of such three (3) month period your option is not exercisable
solely because of the condition set forth in the preceding paragraph relating to
“Securities Law Compliance,” your option shall not expire until the earlier of
the Expiration Date or until it shall have been exercisable for an aggregate
period of three (3) months after the termination of your Continuous Service;

 

(b)                                  subject to Section 7(f),
twelve (12) months after the termination of your Continuous Service due to your
Disability;

 

(c)                                  subject to
Section 7(f), twelve (12) months after your death if you die either during
your Continuous Service or within three (3) months after your Continuous
Service terminates;

 

(d)                                  the Expiration Date
indicated in your Grant Notice;

 

(e)                                  the day before the
tenth (10th) anniversary of the Date of Grant; or

 

(f)                                    in the event that
your Continuous Service terminates without Cause (as defined below) or because
of your Disability or death, in any such case at a time when you are 55 years
old or older and have Continuous Service of 5 years or more, then, to the
extent you were entitled to exercise your option at the date of such
termination, your option will expire upon the earliest of the fifth anniversary
of such date, the Expiration Date indicated in your Grant Notice, or the day
before the tenth (10th) anniversary of the Date of Grant.

 

For purposes of this
Section 7(f) only, “Cause” means that, in the reasonable determination of
the Company, you have (i) been convicted of or pleaded guilty or nolo
contendere to a felony or any crime involving moral turpitude or
dishonesty; (ii) participated in a fraud or act of

 

3

 

dishonesty against the Company;
(iii) willfully and materially breached a Company policy; (iv) intentionally
damaged the Company’s property; (v) willfully and materially breached your
Proprietary Information and Inventions Agreement with the Company; (vi) engaged
in conduct that, in the reasonable determination of the Company, demonstrates
gross unfitness to serve; or (vii) repeatedly failed to satisfactorily perform
job duties to which you previously agreed in writing.  The conduct described under clauses (iii), (vi) and (vii) above
will only constitute Cause if such conduct is not cured within 90 days after
your receipt of written notice from the Company or the Board specifying the
particulars of the conduct that may constitute Cause.

 

If your option is an incentive stock option, note that, to obtain the
federal income tax advantages associated with an “incentive stock option,” the
Code requires that at all times beginning on the date of grant of your option
and ending on the day three (3) months before the date of your option’s
exercise, you must be an employee of the Company or an Affiliate, except in the
event of your death or Disability.  The
Company has provided for extended exercisability of your option under certain
circumstances for your benefit but cannot guarantee that your option will
necessarily be treated as an “incentive stock option” if you continue to
provide services to the Company or an Affiliate as a Consultant or Director
after your employment terminates or if you otherwise exercise your option more
than three (3) months after the date your employment terminates.

 

8.                                      EXERCISE.

 

(a)                                  You may exercise the
vested portion of your option (and the unvested portion of your option if your
Grant Notice so permits) during its term by delivering a Notice of Exercise (in
a form designated by the Company) together with the exercise price to the
Secretary of the Company, or to such other person as the Company may designate,
during regular business hours, together with such additional documents as the
Company may then require.

 

(b)                                  By exercising your
option you agree that, as a condition to any exercise of your option, the
Company may require you to enter into an arrangement providing for the payment
by you to the Company of any tax withholding obligation of the Company arising
by reason of (1) the exercise of your option, (2) the lapse of any substantial
risk of forfeiture to which the shares of Common Stock are subject at the time
of exercise, or (3) the disposition of shares of Common Stock acquired upon
such exercise.

 

(c)                                  If your option is an
incentive stock option, by exercising your option you agree that you will
notify the Company in writing within fifteen (15) days after the date of any
disposition of any of the shares of the Common Stock issued upon exercise of
your option that occurs within two (2) years after the date of your option
grant or within one (1) year after such shares of Common Stock are transferred
upon exercise of your option.

 

9.                                      Transferability.  Your
option is not transferable, except by will or by the laws of descent and
distribution, and is exercisable during your life only by you.  Notwithstanding the foregoing, by delivering
written notice to the Company, in a form satisfactory to the Company, you may
designate a third party who, in the event of your death, shall thereafter be
entitled to exercise your option.

 

4

 

10.                               Option Not a Service Contract.  Your
option is not an employment or service contract, and nothing in your option
shall be deemed to create in any way whatsoever any obligation on your part to
continue in the employ of the Company or an Affiliate, or of the Company or an
Affiliate to continue your employment. 
In addition, nothing in your option shall obligate the Company or an
Affiliate, their respective stockholders, Boards of Directors, Officers or
Employees to continue any relationship that you might have as a Director or
Consultant for the Company or an Affiliate.

 

11.                               Withholding Obligations.

 

(a)                                  At the time you
exercise your option, in whole or in part, or at any time thereafter as
requested by the Company, you hereby authorize withholding from payroll and any
other amounts payable to you, and otherwise agree to make adequate provision
for (including by means of a “cashless exercise” pursuant to a program
developed under Regulation T as promulgated by the Federal Reserve Board to the
extent permitted by the Company), any sums required to satisfy the federal,
state, local and foreign tax withholding obligations of the Company or an
Affiliate, if any, which arise in connection with your option.

 

(b)                                  Upon your request and
subject to approval by the Company, in its sole discretion, and compliance with
any applicable conditions or restrictions of law, the Company may withhold from
fully vested shares of Common Stock otherwise issuable to you upon the exercise
of your option a number of whole shares of Common Stock having a Fair Market
Value, determined by the Company as of the date of exercise, not in excess of
the minimum amount of tax required to be withheld by law.  If the date of determination of any tax
withholding obligation is deferred to a date later than the date of exercise of
your option, share withholding pursuant to the preceding sentence shall not be
permitted unless you make a proper and timely election under Section 83(b)
of the Code, covering the aggregate number of shares of Common Stock acquired
upon such exercise with respect to which such determination is otherwise
deferred, to accelerate the determination of such tax withholding obligation to
the date of exercise of your option. 
Notwithstanding the filing of such election, shares of Common Stock
shall be withheld solely from fully vested shares of Common Stock determined as
of the date of exercise of your option that are otherwise issuable to you upon
such exercise.  Any adverse consequences
to you arising in connection with such share withholding procedure shall be
your sole responsibility.

 

(c)                                  You may not exercise
your option unless the tax withholding obligations of the Company and/or any
Affiliate are satisfied.  Accordingly,
you may not be able to exercise your option when desired even though your
option is vested, and the Company shall have no obligation to issue a
certificate for such shares of Common Stock or release such shares of Common
Stock from any escrow provided for herein.

 

12.                               Notices.  Any
notices provided for in your option or the Plan shall be given in writing and
shall be deemed effectively given upon receipt or, in the case of notices
delivered by mail by the Company to you, five (5) days after deposit in the
United States mail, postage prepaid, addressed to you at the last address you
provided to the Company.

 

13.                               Governing Plan Document.  Your
option is subject to all the provisions of the Plan, the provisions of which
are hereby made a part of your option, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the provisions of your
option and those of the Plan, the provisions of the Plan shall control.

 

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