Document:

2000 Non-Employee Directors' Stock Option Plan

 Exhibit 10.41 
 KOSAN BIOSCIENCES INCORPORATED 
 2000 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN 
 Amended as of May 25, 2006 
 1.
Purposes of the Plan. The purposes of this 2000 Non-Employee Director Stock Option Plan are to attract and retain the best available personnel for service as Outside Directors (as defined herein) of the Company, to provide additional
incentive to the Outside Directors of the Company to serve as Directors, and to encourage their continued service on the Board. 
 All
options granted hereunder shall be nonstatutory stock options. 
 2. Definitions. As used herein, the following definitions shall
apply: 
 (a) “Board” means the Board of Directors of the Company. 
 (b) “Code” means the Internal Revenue Code of 1986, as amended. 
 (c) “Committee” means a committee of the Board unless such committee is specifically excluded by the Board. 
 (d) “Common Stock” means the common stock of the Company. 
 (e) “Company” means Kosan Biosciences Incorporated, a Delaware corporation. 
 (f)
“Director” means a member of the Board. 
 (g) “Disability” means total and permanent disability as defined
in section 22(e)(3) of the Code. 
 (h) “Employee” means any person, including officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company. The payment of a Director’s fee by the Company shall not be sufficient in and of itself to constitute “employment” by the Company. 
 (i) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (j) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market
or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day
prior to the time of grant as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (ii)
If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock for the
last market trading day prior to the time of grant, as reported in The Wall Street Journal or such other source as the Board deems reliable; or 

 (iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof shall
be determined in good faith by the Board. 
 (k) “Inside Director” means a Director who is an Employee. 
 (l) “IPO Effective Date” means the date upon which the Securities and Exchange Commission declares the initial public offering of the
Company’s common stock as effective. 
 (m) “Option” means a stock option granted pursuant to the Plan. 
 (n) “Optioned Stock” means the Common Stock subject to an Option. 
 (o) “Optionee” means a Director who holds an Option. 
 (p) “Outside Director” means a Director who is not an Employee. 
 (q)
“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 (r) “Plan” means this 2000 Non-Employee Director Stock Option Plan. 
 (s) “Share” means a share
of the Common Stock, as adjusted in accordance with Section 10 of the Plan. 
 (t) “Subsidiary” means a
“subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Internal Revenue Code of 1986. 
 3. Stock Subject to the Plan. Subject to the provisions of Section 10 of the Plan, the maximum aggregate number of Shares which may be optioned and sold under the Plan is 500,000 Shares (the “Pool”). The Shares may be
authorized, but unissued, or reacquired Common Stock. 
 If an Option expires or becomes unexercisable without having been exercised in full,
the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan shall not be returned to the Plan and shall not
become available for future distribution under the Plan. 
 4. Administration and Grants of Options under the Plan. 
 (a) Procedure for Grants. All grants of Options to Outside Directors under this Plan shall be automatic and nondiscretionary and shall be made
strictly in accordance with the following provisions: 
 (i) No person shall have any discretion to select which Outside Directors shall be
granted Options or to determine the number of Shares to be covered by Options. 
  

 2 

 (ii) Each Outside Director shall be automatically granted an Option to purchase 20,000 Shares (the
“First Option”) on the date on which the later of the following events occurs: (A) the IPO Effective Date, or (B) the date on which such person first becomes an Outside Director, whether through election by the stockholders of
the Company or appointment by the Board to fill a vacancy; provided, however, that an Inside Director who ceases to be an Inside Director but who remains a Director shall not receive a First Option. 
 (iii) Each Outside Director shall be automatically granted an Option to purchase 5,000 Shares (a “Subsequent Option”) each year on the day
after the annual stockholders meeting provided he or she is then an Outside Director and if as of such date, he or she shall have served on the Board for at least the preceding six (6) months. 
 (iv) Each Outside Director who is a member of a Committee shall be automatically granted an Option to purchase 1,000 Shares (a “Committee
Option”) each year on the day after the annual stockholders meeting provided he or she is then an Outside Director. To the extent that an Outside Director serves on more than one Committee, the Outside Director shall receive a Committee Option
for service on each such Committee. 
 (v) Each Outside Director who is the chairman of a Committee shall be automatically granted an Option
to purchase 2,000 Shares (a “Chairman Option”) each year on the day after the annual stockholders meeting provided he or she is then an Outside Director. To the extent that an Outside Director is the chairman of more than one Committee,
the Outside Director shall receive a Chairman Option for service as chairman of each such Committee. 
 (vi) Notwithstanding the provisions
of subsections (ii), (iii), (iv) and (v) hereof, any exercise of an Option granted before the Company has obtained stockholder approval of the Plan in accordance with Section 16 hereof shall be conditioned upon obtaining such
stockholder approval of the Plan in accordance with Section 16 hereof. 
 (vii) The terms of a First Option granted hereunder shall be
as follows: 
 (A) the term of the First Option shall be ten (10) years. 
 (B) the First Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Sections 8 and
10 hereof. 
 (C) the exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the First Option.

 (D) subject to Section 10 hereof, the First Option shall become exercisable as to 25% percent of the Shares subject to the First
Option on each anniversary of its date of grant, provided that the Optionee continues to serve as a Director on such dates. 
  

 3 

 (viii) The terms of a Subsequent Option granted hereunder shall be as follows: 

(A) the term of the Subsequent Option shall be ten (10) years. 
 (B) the Subsequent Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Sections 8 and 10 hereof 
 (C) the exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the Subsequent Option. 
 (D) subject to Section 10 hereof, the Subsequent Option shall become exercisable as to 100% percent of the Shares subject to the Subsequent Option
on the day before the annual shareholders meeting first occurring after the date of grant of the Subsequent Option, provided that the Optionee continues to serve as a Director on such date. 
 (ix) The terms of a Committee Option granted hereunder shall be as follows: 
 (A) the term of the Committee Option shall be ten (10) years. 
 (B) the Committee Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Sections 8 and 10 hereof 
 (C) the exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the Committee Option. 
 (D) subject to Section 10 hereof, the Committee Option shall become exercisable as to 100% percent of the Shares subject to the Committee Option on
the day before the annual shareholders meeting first occurring after the date of grant of the Committee Option, provided that the Optionee continues to serve as a Director on such date 
 (x) The terms of a Chairman Option granted hereunder shall be as follows: 
 (A) the term of the Chairman Option shall be ten (10) years. 
 (B) the Chairman Option shall be
exercisable only while the Outside Director remains a Director of the Company, except as set forth in Sections 8 and 10 hereof 
 (C)
the exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the Chairman Option. 
  

 4 

 (D) subject to Section 10 hereof, the Chairman Option shall become exercisable as to 100% percent
of the Shares subject to the Chairman Option on the day before the annual shareholders meeting first occurring after the date of grant of the Chairman Option, provided that the Optionee continues to serve as a Director on such date 
 (xi) In the event that any Option granted under the Plan would cause the number of Shares subject to outstanding Options plus the number of Shares
previously purchased under Options to exceed the Pool, then the remaining Shares available for Option grant shall be granted under Options to the Outside Directors on a pro rata basis. No further grants shall be made until such time, if any, as
additional Shares become available for grant under the Plan through action of the Board or the stockholders to increase the number of Shares which may be issued under the Plan or through cancellation or expiration of Options previously granted
hereunder. 
 5. Eligibility. Options may be granted only to Outside Directors. All Options shall be automatically granted in
accordance with the terms set forth in Section 4 hereof. 
 The Plan shall not confer upon any Optionee any right with respect to
continuation of service as a Director or nomination to serve as a Director, nor shall it interfere in any way with any rights which the Director or the Company may have to terminate the Director’s relationship with the Company at any time.

 6. Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the
stockholders of the Company as described in Section 16 of the Plan. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 11 of the Plan. 
 7. Form of Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment,
shall consist of (i) cash, (ii) check, (iii) other shares which (x) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six (6) months on the date of surrender, and
(y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised, (iv) consideration received by the Company under a cashless exercise program implemented
by the Company in connection with the Plan, or (v) any combination of the foregoing methods of payment. 
 8. Exercise of Option.

 (a) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be exercisable at such times as are set
forth in Section 4 hereof; provided, however, that no Options shall be exercisable until stockholder approval of the Plan in accordance with Section 16 hereof has been obtained. 
 An Option may not be exercised for a fraction of a Share. 
 An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person 
  

 5 

 entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been
received by the Company. Full payment may consist of any consideration and method of payment allowable under Section 7 of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. A
share certificate for the number of Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the
stock certificate is issued, except as provided in Section 10 of the Plan. 
 Exercise of an Option in any manner shall result in a
decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
 (b) Termination of Continuous Status as a Director. Subject to Section 10 hereof, in the event an Optionee’s status as a Director
terminates (other than upon the Optionee’s death or Disability), the Optionee may exercise his or her Option, but only within three (3) months following the date of such termination, and only to the extent that the Optionee was entitled to
exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on the date of such termination, and to the extent that
the Optionee does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
 (c) Disability of Optionee. In the event Optionee’s status as a Director terminates as a result of Disability, the Optionee may exercise his or her Option, but only within twelve (12) months following the date of such
termination, and only to the extent that the Optionee was entitled to exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to
exercise an Option on the date of termination, or if he or she does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
 (d) Death of Optionee. In the event of an Optionee’s death, the Optionee’s estate or a person who acquired the right to exercise the
Option by bequest or inheritance may exercise the Option, but only within twelve (12) months following the date of death, and only to the extent that the Optionee was entitled to exercise it on the date of death (but in no event later than the
expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on the date of death, and to the extent that the Optionee’s estate or a person who acquired the right to exercise such Option
does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
 9.
Non-Transferability of Options. The Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. 
  

 6 

 10. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 
 (a) Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of Shares covered by each outstanding
Option, the number of Shares which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per Share
covered by each such outstanding Option, and the number of Shares issuable pursuant to the automatic grant provisions of Section 4 hereof shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting
from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Except as expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Option. 
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, to the extent that an Option has not been
previously exercised, it shall terminate immediately prior to the consummation of such proposed action. 
 (c) Merger or Asset Sale.
In the event of a merger of the Company with or into another corporation or the sale of substantially all of the assets of the Company, outstanding Options may be assumed or equivalent options may be substituted by the successor corporation or a
Parent or Subsidiary thereof (the “Successor Corporation”). If an Option is assumed or substituted for, the Option or equivalent option shall continue to be exercisable as provided in Section 4 hereof for so long as the Optionee
serves as a Director or a director of the Successor Corporation. Following such assumption or substitution, if the Optionee’s status as a Director or director of the Successor Corporation, as applicable, is terminated other than upon a
voluntary resignation by the Optionee, the Option or option shall become fully exercisable, including as to Shares for which it would not otherwise be exercisable. Thereafter, the Option or option shall remain exercisable in accordance with Sections
8(b) through (d) above. 
 If the Successor Corporation does not assume an outstanding Option or substitute for it an equivalent option,
the Option shall become fully vested and exercisable, including as to Shares for which it would not otherwise be exercisable. In such event the Board shall notify the Optionee that the Option shall be fully exercisable for a period of thirty
(30) days from the date of such notice, and upon the expiration of such period the Option shall terminate. 
 For the purposes of this
Section 10(c), an Option shall be considered assumed if, following the merger or sale of assets, the Option confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option immediately prior to the merger or sale
of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a
choice of consideration, the type of consideration 
  

 7 

 chosen by the holders of a majority of the outstanding Shares). If such consideration received in the merger or sale of
assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of
Optioned Stock subject to the Option, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
 11. Amendment and Termination of the Plan. 
 (a) Amendment and Termination. The Board may at any time amend, alter, suspend, or discontinue the Plan, but no amendment, alteration, suspension, or discontinuation shall be made which would impair the rights of any Optionee under
any grant theretofore made, without his or her consent. In addition, to the extent necessary and desirable to comply with any applicable law, regulation or stock exchange rule, the Company shall obtain stockholder approval of any Plan amendment in
such a manner and to such a degree as required. 
 (b) Effect of Amendment or Termination. Any such amendment or termination of the
Plan shall not affect Options already granted and such Options shall remain in full force and effect as if this Plan had not been amended or terminated. 
 12. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date determined in accordance with Section 4 hereof. 
 13. Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and
the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder,
state securities laws, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares, if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned
relevant provisions of law. 
 Inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is
deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained. 
  

 8 

 14. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 15. Option Agreement.
Options shall be evidenced by written option agreements in such form as the Board shall approve. 
 16. Stockholder Approval. The Plan
shall be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted. Such stockholder approval shall be obtained in the degree and manner required under applicable state and federal law
and any stock exchange rules. 
  

 9 

 FIRST OPTION 
 KOSAN BIOSCIENCES INCORPORATED 
 DIRECTOR OPTION AGREEMENT 
 Kosan Biosciences Incorporated, (the “Company”), has granted to «Optionee» (the “Optionee”), an option to purchase a
total of 20,000 shares of the Company’s Common Stock (the “Optioned Stock”), at the price determined as provided herein, and in all respects subject to the terms, definitions and provisions of the Company’s 2000 Non-Employee
Director Stock Option Plan (the “Plan”) adopted by the Company which is incorporated herein by reference. The terms defined in the Plan shall have the same defined meanings herein. 
 1. Nature of the Option. This Option is a nonstatutory option and is not intended to qualify for any special tax benefits to the Optionee.

 2. Date of Grant. «Date_of_Grant» 
 3. Exercise Price. The exercise price is «Exercise_Price» for each share of Common Stock. 
 4. Exercise of Option. This Option shall be exercisable during its term in accordance with the provisions of Section 8 of the Plan as follows: 
 (a) Right to Exercise. 
 (i) This Option shall become vested and exercisable in installments
cumulatively with respect to 25% of the Optioned Stock on each anniversary of its date of grant, so that one hundred percent (100%) of the Optioned Stock shall be vested and exercisable four (4) years after the date of grant; provided,
however, that in no event shall any Option be exercisable prior to the date the stockholders of the Company approve the Plan. 
 (ii) This
Option may not be exercised for a fraction of a share. 
 (iii) In the event of Optionee’s death, disability or other termination of
service as a Director, the exercisability of the Option is governed by Section 8 of the Plan. 
 (b) Method of Exercise. This
Option shall be exercisable by written notice which shall state the election to exercise the Option and the number of Shares in respect of which the Option is being exercised. Such written notice, in the form attached hereto as Exhibit A,
shall be signed by the Optionee and shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the exercise price. 
 5. Method of Payment. Payment of the exercise price shall be by any of the following, or a combination thereof, at the election of the Optionee:

 (a) cash; 

 (b) check; 
 (c) surrender of other Shares, provided Shares acquired from the Company, (x) have been owned by the Optionee for more than six (6) months on the date of surrender, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; or 
 (d) delivery of a
properly executed exercise notice together with such other documentation as the Company and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the
exercise price. 
 6. Restrictions on Exercise. This Option may not be exercised if the issuance of such Shares upon such exercise or
the method of payment of consideration for such shares would constitute a violation of any applicable federal or state securities or other law or regulations, or if such issuance would not comply with the requirements of any stock exchange upon
which the Shares may then be listed. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 
 7. Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of Optionee only by the Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
 8. Term of Option. This Option may not be exercised more than ten (10) years from the date of grant of this Option, and may be exercised
during such period only in accordance with the Plan and the terms of this Option. 
 9. Taxation Upon Exercise of Option. Optionee
understands that, upon exercise of this Option, he or she will recognize income for tax purposes in an amount equal to the excess of the then Fair Market Value of the Shares purchased over the exercise price paid for such Shares. Since the Optionee
is subject to Section 16(b) of the Securities Exchange Act of 1934, as amended, under certain limited circumstances the measurement and timing of such income (and the commencement of any capital gain holding period) may be deferred, and the
Optionee is advised to contact a tax advisor concerning the application of Section 83 in general and the availability a Section 83(b) election in particular in connection with the exercise of the Option. Upon a resale of such Shares by the
Optionee, any difference between the sale price and the Fair Market Value of the Shares on the date of exercise of the Option, to the extent not included in income as described above, will be treated as capital gain or loss. 
  

 2 

			
	KOSAN BIOSCIENCES INCORPORATED,
	A Delaware corporation
		
	By:	 	  

		 	Margaret A. Horn

 Optionee acknowledges receipt of a copy of the Plan, a copy of which is attached hereto, and
represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof. Optionee hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board upon any questions arising under the Plan. 
 Dated:
                                        

  

	
	  

	«Optionee»

  

 3 

 EXHIBIT A 
 DIRECTOR OPTION EXERCISE NOTICE 
 Kosan Biosciences Incorporated 
 3832 Bay Center Place 
 Hayward, CA 94545 
 Attention: Corporate Secretary 
 1. Exercise of Option. The undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase
             shares of the Common Stock (the “Shares”) of Kosan Biosciences Incorporated (the “Company”) under and pursuant to the Company’s 2000
Non-Employee Director Stock Option Plan and the Director Option Agreement dated
                             (the “Agreement”). 
 2. Representations of Optionee. Optionee acknowledges that Optionee has received, read and understood the Agreement. 
 3. Federal Restrictions on Transfer. Optionee understands that the Shares must be held indefinitely unless they are registered under the
Securities Act of 1933, as amended (the “1933 Act”), or unless an exemption from such registration is available, and that the certificate(s) representing the Shares may bear a legend to that effect. Optionee understands that the Company is
under no obligation to register the Shares and that an exemption may not be available or may not permit Optionee to transfer Shares in the amounts or at the times proposed by Optionee. 
 4. Tax Consequences. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase or disposition
of the Shares. Optionee represents that Optionee has consulted with any tax consultant(s) Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on the Company for any tax advice.

 5. Delivery of Payment. Optionee herewith delivers to the Company the aggregate purchase price for the Shares that Optionee has
elected to purchase and has made provision for the payment of any federal or state withholding taxes required to be paid or withheld by the Company. 
 6. Entire Agreement. The Agreement is incorporated herein by reference. This Exercise Notice and the Agreement constitute the entire agreement of the parties and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee with respect to the subject matter hereof. This Exercise Notice and the Agreement are governed by California law except for that body of law pertaining to conflict of laws. 
  

 4 

									
	Submitted by:	 		 	Accepted by:
			
	OPTIONEE:	 		 	KOSAN BIOSCIENCES INCORPORATED
					
	By:	 	  
	 		 	By:	 	  

					
		 		 		 	Its:	 	  

				
	Address:	 		 		 	
			
	Dated:
                                	 		 	Dated:
                                

  

 5 

 «Grant  No» 
 SUBSEQUENT/COMMITTEE/CHAIRMAN OPTION 
 KOSAN BIOSCIENCES INCORPORATED 
 DIRECTOR OPTION AGREEMENT 
 Kosan Biosciences Incorporated, (the “Company”), has granted to «Optionee» (the “Optionee”), an option to purchase
a total of «Shares_Granted» [5,000/1,000/2,000] shares of the Company’s Common Stock (the “Optioned Stock”), at the price determined as provided herein, and in all respects subject to the terms, definitions and
provisions of the Company’s 2000 Non-Employee Director Stock Option Plan (the “Plan”) adopted by the Company which is incorporated herein by reference. The terms defined in the Plan shall have the same defined meanings herein.

 1. Nature of the Option. This Option is a nonstatutory option and is not intended to qualify for any special tax benefits to the
Optionee. 
 2. Exercise Price. The exercise price is «Exercise_Price» for each share of Common Stock. 

3. Exercise of Option. This Option shall be exercisable during its term in accordance with the provisions of Section 8 of the Plan as
follows: 
 (a) Right to Exercise. 
 (i) This Option shall become fully vested and exercisable on the day prior to the first annual shareholder meeting occurring after the date of grant of this Option; provided, however, that in no event shall any Option
be exercisable prior to the date the stockholders of the Company approve the Plan. 
 (ii) This Option may not be exercised for a fraction
of a share. 
 (iii) In the event of Optionee’s death, disability or other termination of service as a Director, the exercisability of
the Option is governed by Section 8 of the Plan. 
 (b) Method of Exercise. This Option shall be exercisable by written notice
which shall state the election to exercise the Option and the number of Shares in respect of which the Option is being exercised. Such written notice, in the form attached hereto as Exhibit A, shall be signed by the Optionee and shall be
delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the exercise price. 
 4. Method of Payment. Payment of the exercise price shall be by any of the following, or a combination thereof, at the election of the Optionee: 
 (a) cash; 
  

 1 

 (b) check; 
 (c) surrender of other Shares, provided Shares acquired from the Company, (x) have been owned by the Optionee for more than six (6) months on the date of surrender, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; or 
 (d) delivery of a
properly executed exercise notice together with such other documentation as the Company and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the
exercise price. 
 5. Restrictions on Exercise. This Option may not be exercised if the issuance of such Shares upon such exercise or
the method of payment of consideration for such shares would constitute a violation of any applicable federal or state securities or other law or regulations, or if such issuance would not comply with the requirements of any stock exchange upon
which the Shares may then be listed. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 
 6. Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of Optionee only by the Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
 7. Term of Option. This Option may not be exercised more than ten (10) years from the date of grant of this Option, and may be exercised
during such period only in accordance with the Plan and the terms of this Option. 
 8. Taxation Upon Exercise of Option. Optionee
understands that, upon exercise of this Option, he or she will recognize income for tax purposes in an amount equal to the excess of the then Fair Market Value of the Shares purchased over the exercise price paid for such Shares. Since the Optionee
is subject to Section 16(b) of the Securities Exchange Act of 1934, as amended, under certain limited circumstances the measurement and timing of such income (and the commencement of any capital gain holding period) may be deferred, and the
Optionee is advised to contact a tax advisor concerning the application of Section 83 in general and the availability a Section 83(b) election in particular in connection with the exercise of the Option. Upon a resale of such Shares by the
Optionee, any difference between the sale price and the Fair Market Value of the Shares on the date of exercise of the Option, to the extent not included in income as described above, will be treated as capital gain or loss. 
  

 2 

 DATE OF GRANT: «Date_of_Grant» 
  

			
	KOSAN BIOSCIENCES INCORPORATED,
	A Delaware corporation
		
	By:	 	  

		 	Margaret A. Horn
		 	 Sr. VP Legal and Corporate Development
 and General
Counsel

 Optionee acknowledges receipt of a copy of the Plan, a copy of which is attached hereto, and
represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof. Optionee hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board upon any questions arising under the Plan. 
 Dated:
                                 
  

	
	  

	«Optionee»

  

 3 

 EXHIBIT A 
 DIRECTOR OPTION EXERCISE NOTICE 
 Kosan Biosciences Incorporated 
 3832 Bay Center Place 
 Hayward, CA 94545 
 Attention: Corporate Secretary 
 1. Exercise of Option. The undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase
             shares of the Common Stock (the “Shares”) of Kosan Biosciences Incorporated (the “Company”) under and pursuant to the Company’s 2000
Non-Employee Director Stock Option Plan and the Director Option Agreement dated
                                 (the “Agreement”). 
 2. Representations of Optionee. Optionee acknowledges that Optionee has received, read and understood the Agreement. 
 3. Federal Restrictions on Transfer. Optionee understands that the Shares must be held indefinitely unless they are registered under the
Securities Act of 1933, as amended (the “1933 Act”), or unless an exemption from such registration is available, and that the certificate(s) representing the Shares may bear a legend to that effect. Optionee understands that the Company is
under no obligation to register the Shares and that an exemption may not be available or may not permit Optionee to transfer Shares in the amounts or at the times proposed by Optionee. 
 4. Tax Consequences. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase or disposition
of the Shares. Optionee represents that Optionee has consulted with any tax consultant(s) Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on the Company for any tax advice.

 5. Delivery of Payment. Optionee herewith delivers to the Company the aggregate purchase price for the Shares that Optionee has
elected to purchase and has made provision for the payment of any federal or state withholding taxes required to be paid or withheld by the Company. 
 6. Entire Agreement. The Agreement is incorporated herein by reference. This Exercise Notice and the Agreement constitute the entire agreement of the parties and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee with respect to the subject matter hereof. This Exercise Notice and the Agreement are governed by California law except for that body of law pertaining to conflict of laws. 

									
	Submitted by:	 		 	Accepted by:
			
	OPTIONEE:	 		 	KOSAN BIOSCIENCES INCORPORATED
					
	By:	 	  
	 		 	By:	 	  

					
		 		 		 	Its:	 	  

	Address:	 		 		 		 	
			
	Dated:
                                	 		 	Dated:Fifth Amendment to Credit Agreement dated as of June 14, 2006

 EXHIBIT 10.1 
 FIFTH AMENDMENT TO CREDIT AGREEMENT 
 This FIFTH AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”) is entered into as of June 14, 2006 by and among A. T. MASSEY COAL COMPANY, INC., a Virginia corporation (the “Administrative Borrower”), individually and as agent on behalf of the other Loan Parties
(such term and each other capitalized term used but not defined herein having the meaning given to it in Article I of the Credit Agreement referenced below), the Required Lenders signatory hereto, UBS AG, STAMFORD BRANCH, as administrative
agent (the “Administrative Agent”), and THE CIT GROUP/BUSINESS CREDIT, INC., as collateral agent and as security trustee (the “Collateral Agent”; and together with the Administrative Agent, the
“Agents”) for the Secured Parties and Issuing Bank. 
 RECITALS 
 WHEREAS, the Administrative Borrower, the other Borrowers, the Guarantors, the Administrative Agent, the Collateral Agent and Lenders entered into that
certain Credit Agreement dated as of January 20, 2004 (as amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”); 
 WHEREAS, the Administrative Borrower (on behalf of itself and each of the other Loan Parties), the Administrative Agent, the Collateral Agent, and the
Lenders entered into that certain First Amendment to Credit Agreement effective as of March 12, 2004; 
 WHEREAS, the Administrative
Borrower (on behalf of itself and each of the other Loan Parties), the Administrative Agent, the Collateral Agent, and the Lenders entered into that certain Third Amendment to Credit Agreement effective as of June 28, 2004. While this document
is titled the Third Amendment to Credit Agreement, it amends the Credit Agreement for only the second time because the Second Amendment to Credit Agreement was never executed; 
 WHEREAS, the Administrative Borrower (on behalf of itself and each of the other Loan Parties), the Administrative Agent, the Collateral Agent, and the
Lenders entered into that certain Limited Waiver and Amendment to Credit Agreement effective as of December 14, 2005; 
 WHEREAS, the
Administrative Borrower (on behalf of itself and each of the other Loan Parties), the Administrative Agent, the Collateral Agent, and the Lenders entered into that certain Limited Waiver to Credit Agreement effective as of January 25, 2006;

 WHEREAS, the Administrative Borrower (on behalf of itself and each of the other Loan Parties), the Administrative Agent, the Collateral
Agent, and the Lenders entered into that certain Limited Waiver and Consent to Credit Agreement effective as of March 28, 2006; 
 WHEREAS, as of January 1, 2006, Holdings adopted the provisions of Emerging Issues Task Force Issue 04-6 related to accounting for production related surface mining costs; 
 WHEREAS, an Accounting Change has occurred by virtue of the adoption by Holdings of the provisions of Emerging Issues Task Force Issue 04-6; 

 WHEREAS, the Administrative Borrower (on behalf of itself and each of the other Loan Parties) has
requested that Agents and the Required Lenders amend the Credit Agreement to modify the definition of Consolidated Net Worth so that the criteria for evaluating the Borrowers’ financial condition shall be the same after such Accounting Change
as if such Accounting Change had not been made. 
 NOW THEREFORE, in consideration of the foregoing recitals, mutual agreements contained
herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Agents, the Required Lenders and the Administrative Borrower (on behalf of itself and each of the other Loan Parties) agree as follows:

 1 Amendment to Credit Agreement. Effective on the date of the satisfaction of the conditions precedent set forth in
Section 2 hereof, Section 1.01 of the Credit Agreement is amended to amend and restate the defined term “Consolidated Net Worth” to read in its entirety as follows: 
 ““Consolidated Net Worth” shall mean, as of any date, consolidated shareholders’ equity or net worth of Holdings and its
Consolidated Subsidiaries, as determined in accordance with GAAP, adjusted to remove the effect on consolidated shareholders’ equity or net worth from the adoption of Emerging Issues Task Force Issue 04-06; provided, that the amount of
such adjustment shall not be greater than $95,000,000.” 
 2 Conditions to Effectiveness. This Amendment shall be
effective on the date on which all of the following conditions precedent are satisfied: 
 2.1 This Amendment shall have been executed and
delivered by the Administrative Agent, the Collateral Agent, the Required Lenders and the Administrative Borrower (on behalf of itself and each of the other Loan Parties). 
 2.2 The representations and warranties contained herein shall be true and correct in all respects, and, after giving effect to this Amendment, no Event
of Default or Default shall exist on the date hereof. 
 3 Representations and Warranties. 
 3.1 The execution, delivery and performance by Administrative Borrower (on behalf of itself and each of the other Loan Parties) of this Amendment has been
duly authorized by all necessary corporate action and this Amendment is a legal, valid and binding obligation of the Administrative Borrower and each of the other Loan Parties enforceable against the Administrative Borrower and each of the other
Loan Parties in accordance with its terms, except as the enforcement thereof may be subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and
(ii) general principles of equity (regardless of whether such enforcement is sought in a proceeding in equity or at law); 
 3.2 Each of
the representations and warranties contained in the Credit Agreement is true and correct in all material respects on and as of the date hereof as if made on the date hereof, except to the extent that such representations and warranties expressly
relate to an earlier date; and 
  

 2 

 3.3 Neither the execution, delivery and performance of this Amendment by the Administrative Borrower (on
behalf of itself and each of the other Loan Parties) nor the consummation of the transactions contemplated hereby does or shall result in a breach of, or violate (i) any provision of the Administrative Borrower’s or any other Loan
Party’s articles of incorporation or bylaws, (iii) any law or regulation, or any order or decree of any court or government instrumentality, applicable to the Administrative Borrower or the other Loan Parties or binding upon any of their
properties, or (iii) any indenture, mortgage, deed of trust, lease, agreement or other instrument to which the Administrative Borrower or any other Loan Party is a party or by which the Administrative Borrower or any other Loan Party or any of
their property is bound, except in any such case to the extent such conflict or breach has been waived by a written waiver document, a copy of which has been delivered to the Agents on or before the date hereof. 
 4 Reference to and Effect upon the Credit Agreement. 
 4.1 Except as specifically set forth above, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. 
 4.2 The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Agent or any Lender
under the Credit Agreement or any other Loan Document, nor constitute amendment of any provision of the Credit Agreement or any other Loan Document, except as specifically set forth herein. Upon the effectiveness of this Amendment, each reference in
the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby. 
 4.3 The Administrative Borrower (on behalf of itself and each of the other Loan Parties) acknowledges and agrees that the execution and delivery by
Agents and Required Lenders of this Amendment shall not be deemed (i) to create a course of dealing or otherwise obligate Agents or Lenders to forbear, waive, consent or execute similar amendments under the same or similar circumstances in the
future, or (ii) to amend, relinquish or impair any right of Agents or Lenders to receive any indemnity or similar payment from any Person or entity as a result of any matter arising from or relating to this Amendment. 
 4.4 The Administrative Borrower (on behalf of itself and each of the other Loan Parties) affirms and acknowledges that this Amendment constitutes a Loan
Document under the Credit Agreement and any reference to the Loan Documents under the Credit Agreement contained in any notice, request, certificate or other document executed concurrently with or after the execution and delivery of this Amendment
shall be deemed to include this Amendment unless the context shall otherwise specify. 
  

 3 

 5 Costs and Expenses. As provided in Section 11.03 of the Credit Agreement,
Borrowers agree to reimburse Agents for all reasonable out-of-pocket expenses incurred by the Administrative Agent and the Collateral Agent in connection with the preparation, execution and delivery of this Amendment, including the fees, charges and
disbursements of Latham & Watkins, LLP, counsel for the Administrative Agent and Hahn & Hessen, LLP, counsel to the Collateral Agent. 
 6 GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF NEW YORK. 
 7 Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of
this Amendment for any other purposes. 
 8 Counterparts. This Amendment may be executed in any number of counterparts, each of
which when so executed shall be deemed an original, but all such counterparts shall constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf the signature is executed) the same with the same force and effect as if such facsimile signature page were an original thereof, and such party shall promptly follow its facsimile signature page
by mailing of a hard copy original. 
 [Signature Pages Follow] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the date first
written above. 
  

			
	ADMINISTRATIVE BORROWER
	
	A. T. MASSEY COAL COMPANY, INC., individually and as agent for each of the other Loan Parties
		
	By:	 	 /s/ Philip W. Nichols

	Name:	 	Philip W. Nichols
	Title:	 	Treasurer

			
	AGENTS
	
	UBS AG, STAMFORD BRANCH, as the Administrative Agent
		
	By:	 	 /s/ Richard L. Tavrow

	Name:	 	Richard L. Tavrow
	Title:	 	Director
		
	By:	 	 /s/ Irja R. Otsa

	Name:	 	Irja R. Otsa
	Title:	 	Associate Director

			
	 THE CIT GROUP/BUSINESS CREDIT, INC.,
 as the
Collateral Agent

		
	By:	 	 /s/ Anthony Lavinio

	Name:	 	Anthony Lavinio
	Title:	 	Vice President

			
	LENDERS
	
	UBS LOAN FINANCE LLC, as Swingline Lender
		
	By:	 	 /s/ Richard L. Tavrow

	Name:	 	Richard L. Tavrow
	Title:	 	Director
		
	By:	 	 /s/ Irja R. Otsa

	Name:	 	Irja R. Otsa
	Title:	 	Associate Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]