Document:

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                                                                    EXHIBIT 10.1

                       NASTECH PHARMACEUTICAL COMPANY INC.
                            2004 STOCK INCENTIVE PLAN

                        RESTRICTED STOCK GRANT AGREEMENT

            This Restricted Stock Grant Agreement (the "Agreement") is entered
into this 25th day of May, 2005, by and between Nastech Pharmaceutical Company
Inc. (the "Company"), a Delaware Corporation, and Gregory L. Weaver ("Grantee").

                                   ARTICLE I
                            GRANT OF RESTRICTED STOCK

            1.1 Grant of Restricted Stock. Pursuant to, and subject to, the
terms and conditions set forth herein and in the Nastech Pharmaceutical Company
Inc. 2004 Stock Incentive Plan (the "Plan"), the Company hereby grants to the
Grantee 7500 restricted shares (the "Restricted Stock") of common stock of the
Company ("Common Stock").

            1.2 Grant Date. The Grant Date of the Restricted Stock is May 25th,
2005

            1.3 Incorporation of Plan. All terms, conditions and restrictions of
the Plan are incorporated herein and made part hereof as if stated herein. If
there is any conflict between the terms and conditions of the Plan and this
Agreement, the terms and conditions of the Plan, as interpreted by the
Compensation Committee of the Board of Directors of the Company (the
"Committee"), shall govern. Except as otherwise provided herein, all capitalized
terms used herein shall have the meaning given to such terms in the Plan.

                                   ARTICLE II
                                     VESTING

            2.1 Vesting. Subject to the further provision of this Agreement, the
Restricted Stock shall vest with respect to a number of whole shares as close as
possible to the following percentage of the total number of shares of Restricted
Stock granted hereunder on the following dates (each, a "Vesting Date"):

<TABLE>
<CAPTION>
PERCENTAGE OF TOTAL SHARES                      VESTING DATE
--------------------------              ------------------------------
<S>                                     <C>
          33.33 %                       1st  anniversary of Grant Date
          33.33 %                       2nd  anniversary of Grant Date
          33.34 %                       3rd  anniversary of Grant Date
</TABLE>

                                  ARTICLE III
                            TERMINATION OF EMPLOYMENT

            3.1 Termination of Employment. In the event that the Grantee's
employment (which for purposes of this Agreement shall include service as a
director or consultant) with the Company or one of the Company's subsidiaries
terminates for any reason, all unvested shares of Restricted Stock, together
with any property in respect of such shares held by the custodian pursuant to
Section 4.3 hereof, shall be forfeited as of the date of such termination of
employment and the Grantee promptly shall return to the Company any certificates
evidencing such shares. For purposes of this Agreement, the Grantee shall be
deemed to have terminated employment or incurred a termination of employment
upon (i) the date the Grantee ceases to be employed by, or to provide consulting
services for, the Company or any Company subsidiary; or (ii) the date the
Grantee ceases to be a Board member, provided, however, that if the Grantee (x)
at the time of reference is both an employee or consultant and a Board member,
or (y) ceases to be engaged as an employee, consultant or Board member and
immediately is engaged in another of such relationships with the Company or any
Company subsidiary, the Grantee shall not be

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deemed to have a "termination of employment" until the last of the dates
determined pursuant to subparagraphs (i) and (ii) above. The Committee, in its
discretion, may determine whether any leave of absence constitutes a termination
of employment for purposes of this Agreement.

                                   ARTICLE IV
                                  RESTRICTIONS

            4.1 Restrictions on Transferability. Until a share of Restricted
Stock vests, such share may not be sold, assigned, transferred, alienated,
commuted, anticipated, or otherwise disposed of (except by will or the laws of
descent and distribution), or pledged or hypothecated as collateral for a loan
or as security for the performance of any obligation, or be otherwise
encumbered, and are not subject to attachment, garnishment, execution or other
legal or equitable process, and any attempt to do so shall be null and void. If
the Grantee attempts to dispose of or encumber the Grantee's unvested shares of
Restricted Stock, such shares of Restricted Stock, together with any property in
respect of such shares held by the custodian pursuant to Section 4.3 hereof,
shall be forfeited as of the date of such attempted transfer and the Grantee
promptly shall return to the Company any certificates evidencing such shares.

            4.2 Issuance of Certificates.

            (a) Reasonably promptly after the Grant Date, the Company shall
issue and deliver to the Grantee stock certificates, registered in the name of
the Grantee, evidencing the shares of Restricted Stock. Each such certificate
may bear the following legend:

      "THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, HYPOTHECATION ENCUMBRANCE OR
      OTHER DISPOSAL OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
      SUBJECT TO THE TERMS OF THE NASTECH PHARMACEUTICAL COMPANY INC. 2004 STOCK
      INCENTIVE PLAN AND A RESTRICTED STOCK GRANT AGREEMENT BETWEEN NASTECH
      PHARMACEUTICAL COMPANY INC. AND THE HOLDER OF RECORD OF THE SECURITIES
      REPRESENTED BY THIS CERTIFICATE. NO TRANSFER OF THE SECURITIES REPRESENTED
      BY THIS CERTIFICATE IN CONTRAVENTION OF SUCH PLAN AND RESTRICTED STOCK
      GRANT AGREEMENT SHALL BE VALID OR EFFECTIVE. COPIES OF SUCH AGREEMENT MAY
      BE OBTAINED BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THE
      CERTIFICATE TO THE SECRETARY OF NASTECH PHARMACEUTICAL COMPANY INC."

Such legend shall not be removed from such certificates until such shares of
Restricted Stock vest.

            (b) Reasonably promptly after any such shares of Restricted Stock
vest pursuant to Section 2.1 hereof, in exchange for the surrender to the
Company of the certificates evidencing such shares of Restricted Stock delivered
to the Grantee under Section 4.2(a) hereof, the Company shall issue and deliver
to the Grantee (or the Grantee's legal representative, beneficiary or heir)
certificates evidencing such shares of Restricted Stock, free of the legend
provided in Section 4.2(a) hereof, together with any property in respect of such
shares held by the custodian pursuant to Section 4.3 hereof.

            (c) The Company may require as a condition of the delivery of stock
certificates pursuant to Section 4.2(b) hereof that the Grantee remit to the
Company an amount sufficient in the opinion of the Company to satisfy any
federal, state and other governmental tax withholding requirements related to
the vesting of the shares represented by such certificate.

            (d) The Grantee shall not be deemed for any purpose to be, or have
rights as, a shareholder of the Company by virtue of the grant of Restricted
Stock, except to the extent a stock certificate is issued therefor pursuant to
Section 4.2(a) hereof, and then only from the date such certificate is issued.
Upon the issuance of a stock certificate, the Grantee shall have the rights of a
shareholder with respect to the Restricted Stock, including the right to vote
the shares, subject to the restrictions on

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transferability, the forfeiture provisions and the requirement that dividends be
held in escrow until the shares vest, as set forth in this Agreement.

            4.3 Dividends, etc. Unless the Committee otherwise determines, any
property, including cash dividends, received by a Grantee with respect to a
share of Restricted Stock as a result of any dividend, recapitalization, merger,
consolidation, combination, exchange of shares or otherwise and for which the
Grant Date occurs prior to such event but which has not vested as of the date of
such event, will not vest until such share of Restricted Stock vests, and shall
be promptly deposited with the Company or a custodian designated by the Company.
The Company shall or shall cause such custodian to issue to the Grantee a
receipt evidencing the property held by it in respect of the Restricted Stock.

                                   ARTICLE V
                                  MISCELLANEOUS

            5.1 Delays or Omissions. No delay or omission to exercise any right,
power or remedy accruing to any party hereto upon any breach or default of any
party under this Agreement, shall impair any such right, power or remedy of such
party, nor shall it be construed to be a waiver of any such breach or default,
or an acquiescence therein, or of or in any similar breach or default thereafter
occurring, nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any
party of any breach or default under this Agreement, or any waiver on the part
of any party or any provisions or conditions of this Agreement, must be in a
writing signed by such party and shall be effective only to the extent
specifically set forth in such writing.

            5.2 Right of Discharge Preserved. Nothing in this Agreement shall
confer upon the Grantee the right to continue in the employ or other service of
the Company or one of the Company's subsidiaries, or affect any right which the
Company may have to terminate such employment or service.

            5.3 Integration. This Agreement contains the entire understanding of
the parties with respect to its subject matter. There are no restrictions,
agreements, promises, representations, warranties, covenants or undertakings
with respect to the subject matter hereof other than those expressly set forth
herein. This Agreement, including, without limitation, the Plan, supersedes all
prior agreements and understandings between the parties with respect to its
subject matter.

            5.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

            5.5 Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware, without
regard to the provisions governing conflict of laws.

            5.6 Grantee Acknowledgment. The Grantee hereby acknowledges receipt
of a copy of the Plan. The Grantee hereby acknowledges that all decisions,
determinations and interpretations of the Committee in respect of the Plan, this
Agreement and the Restricted Stock shall be final and conclusive.

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            IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed by its duly authorized officer, and the Grantee has hereunto signed
this Agreement on his own behalf, thereby representing that he has carefully
read and understands this Agreement and the Plan as of the day and year first
written above.

                                      NASTECH PHARMACEUTICAL COMPANY INC.

                                      By:    /s/ Dr. Steven C. Quay
                                             ----------------------
                                      Name:  Dr. Steven C. Quay,
                                      Title: President and Chief Executive
                                             Officer

                                      /s/ Gregory L. Weaver
                                      ---------------------------
                                      Gregory L. Weaver

                                     - 4 -<PAGE>

                                                                    EXHIBIT 10.2

            STOCK OPTION AGREEMENT (this "Agreement") dated as of May 25th 2005
(the "Grant Date"), between Nastech Pharmaceutical Company Inc., a Delaware
corporation (the "Company"), and Gregory L. Weaver (Grantee"), an employee of
the Company.

            SECTION 1. Grant of Option. Pursuant to the Nastech Pharmaceutical
Company Inc. 2002 Stock Option Plan (the "Plan"), the Company hereby grants to
Grantee, as of the Grant Date, an Incentive Stock Option, to purchase an
aggregate of 7,500 shares (the "Option Shares") of common stock of the Company,
par value $0.006 per share (the "Common Stock"), at an exercise price of $11.54
per share (the "Option") subject to adjustment and the other terms and
conditions set forth herein, in the Plan.

            SECTION 2. Grantee Bound by Plan. The Plan is incorporated herein by
reference and made a part hereof. The Plan shall govern all aspects of this
Agreement except as otherwise specifically stated herein. Grantee hereby
acknowledges receipt of a copy of the Plan and agrees to be bound by all the
terms and provisions thereof. Unless otherwise defined herein, capitalized terms
used but not defined herein shall have the meanings ascribed to them in the
Plan. The Plan should be carefully examined before any decision is made to
exercise this Option.

            SECTION 3. Exercise of Option.

                  (a) General. Subject to the earlier termination of the Option
as provided herein and in the Plan, the Option may be exercised by written
notice to the Company at any time and from time to time after the Grant Date;
provided, however, that the Option shall not be exercisable for more than the
number of shares which are vested in accordance herewith at the time of
exercise. The exercise of this Option and the issuance of Option Shares upon
such exercise shall be subject to compliance by the Company and Grantee with all
applicable requirements of law as set forth in the Plan. The inability of the
Company to obtain approval from any regulatory body having authority deemed by
the Company to be necessary to the lawful issuance and sale of any Common Stock
pursuant to this Option shall relieve the Company of any liability with respect
to the non-issuance or sale of the Common Stock as to which such approval shall
not have been obtained.

                  (b) Vesting. Subject to the earlier termination of the Option
as provided herein and in the Plan, the Option shall vest as follows:

<TABLE>
<S>            <C>
2,500          Of the shares subject to the Option shall be vested on the
               first anniversary of the Grant Date.
2,500          Of the shares subject to the Option shall be vested on each
               succeeding anniversary of the Grant Date.
</TABLE>

                  (c) Early Expiration of Option. (i) Upon the termination of
Grantee's employment or consulting relationship with the Company (including any
subsidiary thereof) for any reason, including death, any portion of the Option
granted hereunder that has not been exercised on the date of such termination
shall expire in accordance with subsection (ii) or (iii)of this Section 3(c) as
applicable.

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                        (ii) In the event that Grantee's employment or
consulting relationship with the Company (including any subsidiary thereof) is
terminated by the Company for Cause, Grantee shall automatically forfeit his
right to exercise any portion of the Option granted hereunder that has not been
exercised as of the date of such termination without regard to whether such
portion of the Option had previously vested and such unexercised portion of the
Option shall automatically be cancelled effective at the commencement of
business on the date of such termination.

                        (iii) In the event that Grantee's employment or
consulting relationship with the Company (including any subsidiary thereof) is
terminated for any reason other than for Cause, death, or Disability, any
unvested portion of the Option granted hereunder shall immediately expire and
any vested portion of the Option granted hereunder that has not been exercised
as of the date of such termination shall automatically expire, if not exercised
beforehand, three months after such termination.

                        (iv) In the event that Grantee's employment or
consulting relationship with the Company (including any subsidiary thereof) is
terminated due to Grantee's death or Disability, any unvested portion of the
Option granted hereunder shall immediately expire and any vested portion of the
Option granted hereunder that has not been exercised as of the date of such
termination shall automatically expire, if not exercised beforehand, three
months after such termination.

                  (d) Normal Expiration of Option. This Option shall not be
exercisable after the tenth anniversary of the Grant Date (the "Expiration
Date").

            SECTION 4. Exercise of Option and Conditions to Exercise. This
Option may not be exercised by Grantee unless the following conditions are met:

                  (a) Notice. This Option shall be exercised by delivering
written notice, substantially in the form attached hereto as Exhibit I, to the
Company at its principal office addressed to the attention of its Secretary.
Such notice shall specify the number of Option Shares with respect to which the
Option is being exercised and shall be signed by Grantee. This Option may not be
exercised for a fraction of a share of Common Stock;

                  (b) Securities Requirements. Legal counsel for the Company
must be satisfied at the time of exercise that the issuance of Option Shares
upon exercise will be in compliance with the Securities Act of 1933, as amended
(the "Securities Act"), and applicable United States federal, state, local and
foreign laws; and

                  (c) Payment of Exercise Price. Grantee must pay at the time of
exercise the full purchase price for the shares of Common Stock being acquired
hereunder (i) in cash or its equivalent or (ii) pursuant to such other method as
the Committee may approve from time to time. Please refer to the Plan for a
complete description of the methods for exercise, payment and delivery of Option
Shares, including requirements for the payment of withholding taxes applicable
thereto.

                                        2
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            SECTION 5. Transferability. This Option may not be sold, assigned,
transferred, pledged, hypothecated or otherwise disposed of by Grantee, except
by will or the laws of descent and distribution (in which case, the transferee
shall succeed to the rights and obligations of Grantee hereunder) and is
exercisable during Grantee's lifetime only by Grantee or his guardian or legal
representative. If Grantee or anyone claiming under or through Grantee attempts
to violate this Section 5, such attempted violation shall be null and void and
without effect, and the Company's obligation hereunder shall terminate. If at
the time of Grantee's death this Option has not been fully exercised, Grantee's
estate or any person who acquires the right to exercise this Option by bequest
or inheritance or by reason of Grantee's death may exercise this Option in
accordance with and with respect to the number of shares set forth in Section 3
above. The applicable requirements of Section 4 above must be satisfied in full
at the time of any exercise.

            SECTION 6. Administration. Any action taken or decision made by the
Company, the Board or the Committee or its delegates arising out of or in
connection with the construction, administration, interpretation or effect of
the Plan or this Agreement shall lie within its sole and absolute discretion, as
the case may be, and shall be final, conclusive and binding on Grantee and all
persons claiming under or through Grantee. By accepting this grant or other
benefit under the Plan, Grantee and each person claiming under or through
Grantee shall be conclusively deemed to have indicated acceptance and
ratification of, and consent to, any action taken under the Plan by the Company,
the Board or the Committee or its delegates.

            SECTION 7. No Rights as Stockholder. Unless and until a certificate
or certificates representing shares of Common Stock shall have been issued to
Grantee (or any person acting under Section 5 above) pursuant to an exercise
hereunder, Grantee shall not be or have any of the rights or privileges of a
stockholder of the Company with respect to shares of Common Stock acquirable
upon exercise of the Option. No adjustment shall be made for cash dividends or
other rights for which the record date is prior to the date of such due exercise
and full payment.

            SECTION 8. Investment Representation. Grantee hereby acknowledges
that the Option Shares shall be acquired for investment without a view to
distribution, within the meaning of the Securities Act, and shall not be sold,
transferred, assigned, pledged or hypothecated in the absence of an effective
registration statement for the shares of Common Stock under the Securities Act
and applicable states securities laws or an applicable exemption from the
registration requirements of the Securities Act and any applicable state
securities laws. Grantee also agrees that the Option Shares will not be sold or
otherwise disposed of in any manner which would constitute a violation of any
applicable securities laws, whether federal or state and that the certificate
representing the shares of Common Stock shall contain a legend to such effect.

            SECTION 9. Listing and Registration of Common Stock. The Company, in
its discretion, may postpone the issuance and/or delivery of shares of Common
Stock upon any exercise of this Option until completion of such stock exchange
listing, or registration, or other

                                        3
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qualification of such shares under any state and/or federal law, rule or
regulation as the Company may reasonably in good faith consider appropriate.

            SECTION 10. Adjustments. (a) Anti-Dilution. In the event of any
change in the number of shares of Common Stock outstanding by reason of any
stock dividend or split, reverse stock split, capitalization, merger,
consolidation or otherwise, the Committee shall make appropriate adjustment to
the number of Option Shares granted hereunder and the exercise price thereof in
order to preserve the position of Grantee and prevent any enlargement or
dilution of such position.

                  (b) Certain Transactions. In the event of the proposed
dissolution or liquidation of the Company, all Options will terminate
immediately prior to the consummation of such proposed action, unless otherwise
provided by the Committee. The Committee may, in the exercise of its sole
discretion in such instances, declare that any Option shall terminate as of a
date fixed by the Committee and give each Grantee the right to exercise his or
her Option as to all or any of the Shares issuable pursuant to the exercise of
the Option, including Shares which would not otherwise be then issuable pursuant
to the exercise of the Option. In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, the Option shall be assumed or an equivalent
option shall be substituted by such successor corporation or a parent or
subsidiary of such successor corporation, unless the Board determines, in the
exercise of its sole discretion and in lieu of such assumption or substitution,
that the Grantee shall have the right to exercise the Option in whole or in
part, including Shares which would not otherwise be then issuable pursuant to
the exercise of the Option. If the Board makes an Option exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the Board
shall notify the Grantee that the Option shall be exercisable for a period of
not less than 15 days from the date of such notice, and the Option will
terminate upon the expiration of such period..

                  SECTION 11. Notices. Any notice hereunder to the Company shall
be addressed to the Company at 3450 Monte Villa Parkway, Bothell, WA 98021,
Attention: Secretary, and any notice hereunder to Grantee shall be addressed to
Grantee at Grantee's last address on the records of the Company, subject to the
right of either party to designate at any time hereafter in writing some other
address. Any notice shall be deemed to have been duly given when delivered
personally, one day following dispatch if sent by reputable overnight courier,
fees prepaid, or three days following mailing if sent by registered mail, return
receipt requested, postage prepaid and addressed as set forth above.

            SECTION 12. Binding Effect. This Agreement shall be binding upon and
inure to the benefit of any successors to the Company and all persons lawfully
claiming under Grantee.

            SECTION 13. Governing Law. The validity, construction,
interpretation, administration and effect of the Plan, and of its rules and
regulations, and rights relating to the Plan and to this Agreement, shall be
governed by the substantive laws, but not the choice of law rules, of the State
of Delaware.

                                        4
<PAGE>

            IN WITNESS WHEREOF, the Company and Grantee have executed this
Agreement as of the date first above written.

                                        NASTECH PHARMACEUTICAL COMPANY INC.

                                        /s/ Dr. Steven C. Quay
                                        ----------------------
                                        Dr. Steven C. Quay
                                        President and Chief Executive Officer

GRANTEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE
OPTION IS EARNED ONLY THROUGH HIS CONTINUED AND SATISFACTORY EMPLOYMENT WITH THE
COMPANY OR ITS SUBSIDIARIES AND NOT THROUGH THE GRANT OF THIS OPTION OR THE
ACQUISITION OF SHARES HEREUNDER. GRANTEE ACKNOWLEDGES AND AGREES THAT NOTHING IN
THIS AGREEMENT, NOR IN THE COMPANY'S 2002 STOCK OPTION PLAN WHICH IS
INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON GRANTEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT BY THE COMPANY, NOR SHALL IT INTERFERE IN
ANY WAY WITH HIS RIGHT OR THE COMPANY'S RIGHT TO TERMINATE HIS EMPLOYMENT AT ANY
TIME, WITH OR WITHOUT CAUSE.

Grantee acknowledges receipt of a copy of the Plan and represents that he is
familiar with the terms and provisions thereof, and hereby accepts this Option
subject to all of the terms and provisions thereof except as otherwise
specifically stated in this Option Agreement. Grantee has reviewed the Plan and
this Agreement in their entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Agreement and fully understands all provisions
of this Agreement. Grantee hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Board or Committee upon any
questions arising under the Plan.

                                        GRANTEE
                                        /s/ Gregory L. Weaver
                                        --------------------------
                                        Name: Gregory L. Weaver

                                        5
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                                                                       EXHIBIT I

                       NOTICE OF EXERCISE OF STOCK OPTION

            Reference is hereby made to the [Stock Option Award Agreement] (the
"Award Agreement") dated as of May 25th 2005, between Gregory L. Weaver, and
Nastech Pharmaceutical Company Inc., a Delaware corporation (the "Company"). The
undersigned hereby notifies the Company that its elect to purchase _____________
shares of the Company's Common Stock (the "Purchased Shares") at the option
exercise price of $11.54 per share (the "Exercise Price") pursuant to that
certain option (the "Option") granted to the undersigned on May 25th 2005, to
purchase up to 7,500 shares of the Company's Common Stock.

            Concurrently with the delivery of this Exercise Notice to the
Secretary of the Company, the undersigned shall hereby pay to the Company the
Exercise Price for the Purchased Shares in accordance with the provisions of the
Award Agreement and shall deliver whatever additional documents may be required
by the Award Agreement as a condition for exercise.

Date: ____________________

                                        _______________________________________
                                        Name:

                                        Address: ______________________________
                                        _______________________________________
                                        _______________________________________

Print name in exact manner
it is to appear on the
stock certificate:             ________________________

Address to which certificate
is to be sent, if different
from address above:            ________________________
                               ________________________
                               ________________________

Social Security Number         ________________________

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