Document:

Genentech, Inc. - Exhibit 10.10

EXHIBIT 10.10

GENENTECH, INC.

1991 Employee Stock Plan

(As amended effective April 23, 2003)

1.  Purpose 

The purpose of this 1991 Employee Stock Plan (the "Plan") is to provide employees of Genentech, Inc. (the "Company"), and its U.S. subsidiaries designated by the Company's Board of Directors, who wish to become stockholders of the Company an opportunity to purchase (i) shares of Common Stock of the Company (the "Shares"). The Plan is intended to qualify as an "employee stock purchase plan" within the meaning of Section 423 of the Internal Revenue Code of 1986, as amended (the "Code"). 

2.  Eligible Employees 

Subject to the provisions of Sections 7, 8 and 9 below, any individual who is in the full-time employment of the Company on the day on which a Grant Date (as defined in Section 3 below) occurs is eligible to participate in an offering of Shares made by the Company hereunder. In addition, the Board of Directors may at any time designate one or more of the Company's U.S. subsidiary corporations (as defined in Section 425(f) of the Code) to be included in an offering of Shares under the Plan. Full-time employment shall mean employment by the Company or its designated U.S. subsidiary for: 

            (a)  20 hours or more per week; and 

            (b)  more than five months in the calendar year. 

3.   Grant Dates 

From time to time, the Board of Directors may fix a date (a "Grant Date") or a series of dates (each of which is a "Grant Date") on which the Company will grant rights to purchase Shares ("Rights") to employees eligible to participate. 

4.  Prices 

The purchase price per Share for Shares covered by a grant of Rights hereunder shall be determined by the Board of Directors, but in no event shall be less than the lesser of: 

            (a)  eighty-five percent (85%) of the fair market value of a Share on the Grant Date on which such Right was granted; or 

            (b)  eighty-five percent (85%) of the fair market value of a Share on the date such Right is exercised as to that Share. 

5.  Exercise of Rights and Method of Payment 

            (a)  Rights granted under the Plan will be exercisable on specific dates as determined by the Board of Directors. 

            (b)  The method of payment for Shares purchased upon exercise of Rights granted hereunder shall be through regular payroll deductions or by lump sum cash payment, or both, as determined by the Board of Directors. No interest shall be paid upon payroll deductions or other payments in exercise of Rights unless specifically provided for by the Board of Directors. 

6.  Terms of Rights 

Rights granted hereunder shall be exercisable during a twenty-seven (27) month period or such shorter period as determined by the Board of Directors. All Rights granted to an employee shall terminate upon termination of full-time employment of the employee. Any payments received by the Company from a participating employee with respect to a Right granted hereunder and not utilized for the purchase of Shares upon exercise of such Right shall be promptly returned to such employee by the Company after termination of such Right, except that amounts that were not so utilized because such amounts were insufficient to purchase a whole Share may be applied toward the purchase of Shares pursuant to a Right subsequently granted hereunder, if any. 

7.  Shares Subject to the Plan 

No more than Twenty Three Million Two Hundred Thousand (23,200,000) Shares may be sold pursuant to Rights granted under the Plan. Appropriate adjustments in the above figure, in the number of Shares covered by outstanding Rights granted hereunder, in the exercise price of the Rights and in the maximum number of Shares which an employee may purchase (pursuant to Section 9 below) shall be made to give effect to any mergers, consolidations, reorganizations, recapitalizations, stock splits, stock dividends or other relevant changes in the capitalization of the Company occurring after the effective date of the Plan, provided that no fractional Shares shall be subject to a Right and each Right shall be adjusted downward to the nearest full Share. Any agreement of merger or consolidation will include provisions for protection of the then existing Rights of participating employees under the Plan. Either authorized and unissued Shares or issued Shares heretofore or hereafter reacquired by the Company may be made subject to Rights under the Plan. If for any reason any Right under the Plan terminates in whole or in part, Shares subject to such terminated Right may again be subject to a Right under the Plan. 

8.  Limitations on Grants 

Anything to the contrary notwithstanding, pursuant to Section 423 of the Code: 

            (a)  No employee shall be granted a Right hereunder if such employee, immediately after the Right is granted, owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company, its parent corporation (as defined in Section 425(c) of the Code) or any subsidiary corporation, in each case computed in accordance with Section 423(b)(3) of the Code. 

            (b)  No employee shall be granted a Right which permits his Rights to purchase Shares under all employee stock purchase plans of the Company and its subsidiaries to accrue at a rate which exceeds twenty-five thousand dollars ($25,000) (or such other maximum as may be prescribed from time to time by the Code) of fair market value of such Shares (determined at the time such Right is granted) for each calendar year in which such Right is outstanding at any time, all in accordance with the provisions of Section 423(b)(8) of the Code. 

9.  Limits on Participation 

            (a)  Participation shall be limited to eligible employees who enroll under the Plan. 

            (b)  No Right granted to any participating employee shall cover more than Forty-Eight Thousand (48,000) Shares. 

            (c)  No more than Seven Hundred Twenty Thousand (720,000) Shares may be purchased during any calendar quarter upon the exercise of Rights granted under the Plan; provided, however, that for those calendar quarters in which the Company pays regular annual bonuses to eligible employees, the maximum aggregate numbers of Shares which may be purchased upon the exercise of Rights shall be Eight Hundred Thousand (800,000) Shares. If the aggregate purchases of Shares upon exercises of Rights granted under the Plan would exceed the applicable maximum number for a particular calendar quarter, the maximum permitted number of Shares shall be allocated to the exercising participants in proportion to the number of Shares they would otherwise purchase during such calendar quarter. 

10.  Employee's Rights as Stockholder 

No participating employee shall have any Rights as a stockholder in the Shares covered by a Right granted hereunder until such Right has been exercised, full payment has been made for the corresponding Shares and the purchase has been entered in the records of the Transfer Agent for the Shares. 

11.  Rights Not Transferable 

Rights under the Plan are not assignable or transferable by a participating employee. 

12.  Amendments or Discontinuance of the Plan 

The Board of Directors of the Company shall have the right to amend, modify or terminate the Plan at any time without notice; provided, however, that the then existing Rights of all participating employees shall not be adversely affected thereby, except that in the case of a participating employee of a foreign branch of the Company or a designated U.S. subsidiary corporation the Plan may be varied to conform with local laws, and provided further that, subject to the provisions of Section 7 above, no such amendment to the Plan shall, without the approval of the stockholders of the Company: 

            (a)  Increase the total number of Shares which may be offered under the Plan; 

            (b)  Amend the Plan in any manner which would render Rights granted hereunder unqualified for special tax treatment under Section 421 of the Code. 

13.  Effective Date and Approvals 

The Plan shall become effective as of January 1, 1991. The Company's obligation to offer, sell or deliver its Shares under the Plan is subject to the approval of the Company's stockholders and any governmental approval required in connection with the authorized issuance or sale of such Shares and is further subject to the determination by the Company that all applicable securities laws have been complied with. 

14.  Administration of the Plan 

The Board of Directors or any committee or person(s) to whom it delegates its authority (the "Administrator") shall administer, interpret and apply all provisions of the Plan. The Administrator may waive such provisions of the Plan as it deems necessary to meet special circumstances not anticipated or covered expressly by the Plan. Nothing contained in this Section shall be deemed to authorize the Administrator to alter or administer the provisions of the Plan in a manner inconsistent with the provisions of Section 423 of the Code.Genentech, Inc. - Exhibit 10.16

EXHIBIT 10.16

AMENDED AND RESTATED BACKUP FACILITY AGREEMENT

            AMENDED AND RESTATED BACKUP FACILITY AGREEMENT dated as of November 6, 2003, among DNA FINANCE CORP. (the "Borrower"), the BANKS party hereto (the "Banks"), the INVESTORS party hereto (the "Investors"), JP MORGAN CHASE BANK (formerly known as The Chase Manhattan Bank), as CP Administrative Agent and as Agent Bank (the "Agent"), UNION BANK OF CALIFORNIA, N.A., as Collateral Agent, VACAVILLE REAL ESTATE TRUST 2001 ("Lessor"), and GENENTECH, INC. ("Lessee" and "Guarantor").

W I T N E S S E T H :

            WHEREAS, Borrower, Agent and the Banks hereto have heretofore entered into a Backup Facility Agreement dated as of October 26, 2001 (as amended prior to the Restatement Effective Date referred to below, the "Backup Facility Agreement"), and such parties, the Investors, Lessor, Lessee and certain other Persons have entered into the Participation Agreement referred to therein (as amended prior to the Restatement Effective Date referred to below, the "Participation Agreement"), and certain other Operative Agreements (as such term is defined in accordance with Section 1 below);

            WHEREAS, at the date hereof, there are no Facility Loans outstanding under the Backup Facility Agreement; and

            WHEREAS, the parties hereto desire to amend the Backup Facility Agreement and the Participation Agreement as set forth herein and to restate the Backup Facility Agreement in its entirety to read as set forth in the Backup Facility Agreement with the amendments specified below;

            NOW, THEREFORE, the parties hereto agree as follows:

            SECTION 1.  Defined Terms; References.  Unless otherwise specifically defined herein, each term used herein which is defined in Annex A to the Participation Agreement shall have the meaning assigned to such term in such Annex A. Each reference to "hereof", "hereunder", "herein" and "hereby" and each other similar reference and each reference to "this Agreement" and each other similar reference contained in the Backup Facility Agreement shall, after the Restatement Effective Date, refer to the Backup Facility Agreement as amended and restated hereby.

            SECTION 2.  Amendments

                        Upon the Restatement Effective Date:  

             (a)  Pursuant to Section 4.2 of the Backup Facility Agreement, the Banks agree that the current "Expiry Date" of November 6, 2003 shall be, and is hereby, extended to November 4, 2004, and each undersigned Bank shall remain a party to the Backup Facility Agreement as a 

 

 

Bank with an obligation to make (i) Revolving Facility Loans prior to its new Expiry Date in an aggregate principal amount not to exceed the amount of the Commitment set forth below, and (ii) a Term Loan in the amount of such Commitment on the terms set forth in the Backup Facility Agreement, in each case as such amounts may be adjusted from time to time as provided in the Backup Facility Agreement.

            (b)  The Banks agree that the Backup Facility Agreement and the Participation Agreement are each amended, as of the Restatement Effective Date, by replacing the Commitment amounts on the signature pages thereof with the Commitments shown on Schedule 1 attached hereto.  

            SECTION 3.  Representations and Warranties.  Each of Lessee, Borrower, and Guarantor hereby represents and warrants that (i) its respective representations and warranties contained in the Participation Agreement and the Operative Agreements are, after giving effect to this Amendment and Restatement, true and correct in all material respects on and as of the Restatement Effective Date, and (ii) no Default will have occurred and be continuing as to it on such date.

            SECTION 4.  Governing Law.  This Amendment and Restatement shall be governed by and construed in accordance with the laws of the State of New York.

            SECTION 5.  Counterparts.  This Amendment and Restatement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

            SECTION 6.  Effectiveness.  This Amendment and Restatement shall become effective on the date when the following conditions are met (the "Restatement Effective Date"):

            (a)  the Agent shall have received from each of the Borrower, the Banks, the Lessor, the Lessee, and the Guarantor a counterpart hereof signed by such party or facsimile or other written confirmation (in form satisfactory to the Agent) that such party has signed a counterpart hereof; 

            (b)  the Agent shall have received an opinion of in house counsel to Lessee, dated the Restatement Effective Date, in form and substance satisfactory to the Agent; and

            (c)  the Agent shall have received all documents the Administrative Agent may reasonably request relating to the existence of the Lessee, the authority for and the validity of this Amendment and Restatement, and any other matters relevant hereto, all in form and substance satisfactory to the Agent. 

            SECTION 7.  Continuing Effect of the Participation Agreement and Operative Agreements.  Except as expressly provided herein, this Agreement shall not constitute an amendment or waiver of any other provision of the Backup Facility Agreement, the Participation Agreement or any Operative Agreement not expressly referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of Lessee, the Lessor, Borrower or Guarantor that would require a waiver or consent of the Agent Bank, the Investors and/or the Banks except as may be provided for herein.  Except as expressly amended hereby, the provisions of the Participation Agreement and the Operative Agreements (together with any

 

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consent or waiver heretofore delivered pursuant thereto) are and shall remain in full force and effect. 

            SECTION 8.  Expenses.  Lessee agrees to pay or reimburse the Agent and Borrower for all of their reasonable out-of-pocket costs and expenses incurred in connection with the preparation, negotiation and execution of this Agreement, including, without limitation, the fees and disbursements of their counsel. 

            SECTION 9.  Construction.  The fact that all the parties hereto executed this Agreement should not be construed as requiring all such parties to execute or consent to any particular amendment of any Operative Agreement.

            SECTION 10.  Instruction.  The Agent, Borrower and the Lessor are hereby instructed to execute this Agreement.

 

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            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	 	
GENENTECH, INC., as Lessee and Guarantor

By:    /s/ LOUIS J. LAVIGNE  

            Name: Louis J. Lavigne

            Title: Executive Vice President and 

                       Chief Financial Officer

	 	 
	 	
DNA FINANCE CORP., as Borrower

By:    /s/ FRANK B. BILOTTA  

            Name: Frank B. Bilotta

            Title: President

	 	 
	 	
VACAVILLE REAL ESTATE TRUST 2001, as

Lessor

By:  Wilmington Trust Company, not in its 

         individual capacity but solely as Trustee

            By:    /s/ MICHAEL G. OLLER, JR.  

                    Name: Michael G. Oller, Jr.

                    Title: Senior Financial Services Officer

	 	 
	 	
JPMORGAN CHASE BANK, as Bank and as

Agent Bank 

By:    /s/ DAWN LEE LUM  

            Name: Dawn Lee Lum

            Title: Vice President

	 	 
	 	
JPMORGAN CHASE BANK, as CP

Administrative Agent

By:    /s/ TAMMY HONG  

            Name: Tammy Hong

            Title: Vice President

 

Page 4

 

	 	 
	 	
UNION BANK OF CALIFORNIA, N.A., as

Collateral Agent 

By:    /s/ SANDRA HANRAHAN  

           Name: Sandra Hanrahan

           Title: Corporate Trust Officer

	 	 
	 	
UBS AG, STAMFORD BRANCH, as a Bank

	 	 
	 	
By:    /s/ WILFRED V. SAINT  

            Name: Wilfred V. Saint

            Title: Associate Director

                      Banking Products Services, US

	 	 
	 	
By:    /s/ JOSELIN FERNANDES  

            Name: Joselin Fernandes

            Title: Associate Director

                      Banking Product Services, US

	 	 
	 	
BNP PARIBAS, as a Bank

	 	 
	 	
By:    /s/ PIERRE NICHOLAS ROGERS  

            Name: Pierre Nicholas Rogers

            Title: Managing Director

	 	 
	 	
By:    /s/ SANDY BERTRAM  

            Name: Sandy Bertram

            Title: Vice President

	 	 
	 	 
	 	
ABN AMRO BANK, N.V., as a Bank

	 	 
	 	
By:    /s/ ALEXANDER M. BLODI  

            Name: Alexander M. Blodi

            Title: Director

	 	 
	 	
By:    /s/ TODD J. MILLER  

            Name: Todd J. Miller

            Title: Assistant Vice President

 

Page 5

 

	 	 
	 	
MELLON BANK, N.A., as a Bank

	 	 
	 	
By:    /s/ LAWRENCE C. IVEY  

            Name: Lawrence C. Ivey

            Title: First Vice President

	 	 
	 	
WACHOVIA BANK, N.A., as a Bank

	 	 
	 	
By:    /s/ ROBERT G. MCGILL JR.  

            Name: Robert G. McGill Jr.

            Title: Vice President

	 	 
	 	
CREDIT SUISSE FIRST BOSTON, acting through

its Cayman Islands Branch, as a Bank

	 	 
	 	
By:    /s/ JAY CHALL  

            Name: Jay Chall

            Title: Director

	 	 
	 	
By:    /s/ CHRISTOPHER LALLY  

            Name: Christopher Lally

            Title: Vice President

	 	 
	 	
BANK OF NEW YORK, as a Bank

	 	 
	 	
By:    /s/ REBECCA K. LEVINE  

            Name: Rebecca K. Levine

            Title: Vice President

 

Page 6

 

SCHEDULE 1

 

COMMITMENT SCHEDULE

 

	
Bank
	
Commitment

	 	 	 
	
JPMORGAN CHASE BANK
	
$
	
70,971,800

	
UBS AG, STAMFORD BRANCH
	
$
	
70,971,800

	
BNP PARIBAS
	
$
	
70,971,800

	
ABN AMRO BANK, N.V.
	
$
	
50,000,000

	
MELLON BANK, N.A.
	
$
	
50,000,000

	
WACHOVIA BANK, N.A.
	
$
	
70,971,800

	
CREDIT SUISSE FIRST BOSTON
	
$
	
70,971,800

	
BANK OF NEW YORK
	
$
	
25,000,000

	 	 	 
	
            TOTAL
	
$
	
479,859,000

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