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                                                                 EXHIBIT 10.23

                              EMPLOYMENT AGREEMENT

      This Employment Agreement (the "Agreement"), effective as of January 4,
2000, is made and entered by and between Greg McNulty (the "Executive") and Nx
Networks Corporation, a Delaware corporation (the "Company").

                                    AGREEMENT

      WHEREAS, the Company desires to engage the Executive to provide
services pursuant to the terms of this Agreement; and

      WHEREAS, the Executive desires to provide such services to the Company
pursuant to the terms of this Agreement;

      NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below, the parties hereto agree as follows:

1.    TERM OF EMPLOYMENT.
      ------------------

      The term of the Executive's employment under this Agreement shall commence
immediately upon the execution of this Agreement and end on the third
anniversary of such date (the "Term of Employment"). If the Company or the
Executive does not deliver to the other party at least 60 days prior written
notice that the Term of Employment shall end on the third anniversary of the
date hereof, the Term of employment shall automatically continue for an
additional one-year period. At the end of such one year period, the Term of
employment shall automatically continue for successive one year terms unless
either party delivers at least 60 days prior written notice that the Term or
employment shall end at the end of such one-year renewal period.

2.    DUTIES.
      ------

      (a) During the Term of Employment, the Executive shall serve as the
Executive Vice President-Worldwide Sales and Marketing of the Company with such
authority and duties as are generally associated with such position and as may
be assigned to him from time to time by the Board of Directors of the Company
that are consistent with such authority and duties. The Executive shall report
to the President of the Company.

      (b) During the Term of Employment the Executive shall devote his full
business time and best efforts to the business and affairs of the Company.
Nothing in this Agreement shall preclude the Executive from engaging in
charitable and community affairs so long as such activities, in the reasonable
determination of the Board of Directors of the Company, do not interfere with
the execution of his duties and responsibilities hereunder or from serving,
subject to the prior approval of the Board of Directors (not to be unreasonably
withheld), as a director or trustee of any other corporation, association or
entity.

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3.    COMPENSATION AND RELATED MATTERS.
      --------------------------------

      (a) SALARY. During the Term, the Executive shall receive a base salary
(the "Base Salary") at the rate of $200,000 per annum. Such Base Salary shall be
payable in accordance with the Company's policies in effect from time to time,
but in any event no less frequently than monthly. The Board of Directors from
time to time may increase, but not decrease, the Base Salary.

      (b) BONUS. The Executive shall be eligible for an annual bonus in such
amount as the Board of Directors may designate. Payment of any annual bonus
shall be made at the same time that other senior-level executives receive their
bonus but in no event later than April 21 of the following year to which such
bonus relates.

      (c)   STOCK OPTIONS.
            -------------

            (i) To induce the Executive to enter into this Agreement, the
      Executive is hereby granted an option (the "Stock Option") by the Company
      to purchase 250,000 shares of common stock, par value $0.05 per share, of
      the Company (the "Common Stock"). The Stock Option shall be memorialized
      in a separate stock option agreement, dated the date hereof, between the
      Company and the Executive. The exercise price of the Stock Options will be
      $6.00 per share of Common Stock. The Stock Options shall vest over time as
      follows and be subject to earlier vesting as described below.

      Time vesting:
            50,000 on the date hereof, and 50,000 semi-annually thereafter.

      Accelerated vesting:
            NO. SHARES  VESTING EVENT
            50,000            Common Stock trades at $35/share for 10
                                consecutive trading days
            50,000            Common Stock trades at $40/share for 10
                                consecutive trading days
            50,000            Common Stock trades at $45/share for 10
                                consecutive trading days
            50,000            Common Stock trades at $50/share for 10
                                consecutive trading days

            (ii) Additional stock option compensation will be granted to the
      Executive if the Company achieves targeted levels of annual gross revenue
      (the "Target Revenue"). With respect to the calendar year ending December
      31, 2000, the Target Revenue is $50 million. In each subsequent year the
      Target Revenue will be 120% of the actual gross revenue of the Company for
      the immediately preceding year (prorated for a partial year, if
      applicable, in the last year of this Agreement). If for any calendar year
      the Company's gross revenue exceeds the Target Revenue for that year, then
      the Executive will be granted additional options at the rate of 1 option
      for each $40 of such excess revenue. The determination of the Company's
      gross revenues for each year will be based upon its audited financial
      statements, as reflected in the Company's Annual Report on Form 10-K, but
      subject to adjustment by the President to reflect any gross revenues
      booked at calendar year-end but determined by him in good faith not to be
      collectible. Each such grant of additional stock options shall be made
      promptly after the audited financial statements become available, and

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      shall be memorialized in a separate stock option agreement, dated the
      grant date, between the Company and the Executive. The exercise price of
      each option shall be the market price of the Common Stock on the date of
      grant. The additional stock options shall vest in four equal semi-annual
      installments with the first such installment vesting on the six-month
      anniversary of the grant date. The Target Revenue for any year may be
      adjusted by the Compensation Committee of the Board of Directors, as the
      Committee may deem appropriate in its good faith determination, to take
      into account acquisitions or divestitures of business or business lines by
      the Company. Notwithstanding the foregoing, no grant of additional stock
      options will be made under this Section 3(c)(ii) for any year in which a
      Change in Control of the Company, as defined in the Company's 1999 Long
      Term Incentive Plan, occurs or in any year subsequent to a Change of
      Control.

            (iii) The Company shall use its best efforts to register the Common
      Stock underlying the options referred to in this Section 3(c) on
      Securities and Exchange Commission Form S-8, including the registration of
      any shares underlying stock options vested prior to the date of filing
      such Form S-8.

      (d) EXPENSES. The Executive is authorized to incur reasonable expenses in
carrying out his duties and responsibilities under this Agreement and the
Company shall promptly reimburse him for all business expenses incurred in
connection therewith, subject to documentation in accordance with the Company's
policy.

      (e)   OFFICE ALLOWANCE.  The Company shall reimburse the Executive for
an office expense up to a maximum of $10,900 per year, prorated for partial
years.

      (f) EMPLOYEE BENEFITS. During the Term of Employment, the Executive shall
be entitled to participate in or receive benefits under any and all employee
benefit plans, programs and arrangements on terms no less favorable than those
generally applicable to senior executives of the Company, subject to and on a
basis consistent with the terms, conditions and overall administration of such
employee benefit plans, programs and arrangements. The Executive shall also be
eligible to participate in the Company's executive perquisites in accordance
with the terms and provisions of the arrangements as in effect from time to time
for the Company's senior executives. The Executive will receive a medical
insurance coverage family plan as offered to other Executives. For the term of
his employment, said medical insurance coverage shall be for the maximum
coverage available for said medical coverage. The Executive shall also receive
the sum of $500.00 per month for automobile allowance during the term of
employment. The Executive will receive life insurance coverage as comparable to
that which is offered to any other executive.

      (g) VACATION. The Executive shall be entitled to four weeks of paid
vacation for each 12-month period during the Term of Employment, which shall be
taken at such times and intervals as shall be determined by the Executive,
subject to the reasonable business needs of the Company. The Executive shall
also be entitled to the paid holidays and other paid leave set forth in the
Company's policies.

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      (h) PAYMENT UPON CHANGE OF CONTROL. In the event of a Change in Control of
the Company, as defined in the Company's 1999 Long Term Incentive Plan, the
Company shall issue to the Executive 200,000 shares of Common Stock (or, if the
Common Stock was modified, exchanged or converted in connection with such Change
of Control, the cash, securities or other property that such 200,000 shares
would represent at the time of the Change of Control if they had been modified,
exchanged or converted in connection with such Change of Control). Such Common
Stock will be registered by the Company at the time of, or as soon as possible
after, such issuance.

4.    TERMINATION OF EMPLOYMENT.
      --------------------------

      (a) TERMINATION DUE TO DEATH. In the event the Executive's employment is
terminated due to his death, his estate or his beneficiaries, as the case may
be, shall be entitled to and their sole remedies under this Agreement shall be:

          (i)   Base Salary through the date of death which shall be paid in a
                single lump sum not later than 45 days following the Executive's
                death;

          (ii)  the balance of any bonus awarded and earned but not paid at the
                time of termination, which shall be paid in a single lump sum
                not later than 45 days following the Executive's death; and

          (iii) other or additional benefits then due or earned in accordance
                with applicable plans and programs of the Company.

      (b) TERMINATION DUE TO DISABILITY. In the event the Executive becomes
Disabled (as defined below), the Company may terminate his employment upon
notice to that effect. Upon such a termination, the Executive or is
representative, as the case may be, shall be entitled to, and their sole
remedies under this Agreement shall be:

          (i)   Base Salary through the date of termination, which shall be paid
                in a single lump sum not later than 45 days following such
                termination;

          (ii)  the balance of any bonus awarded and earned but not paid at the
                time of termination, which shall be paid in a single lump sum
                not later than 45 days following the date of termination; and

          (iii) other or additional benefits then due or earned in accordance
                with applicable plans and programs of the Company.

For the purpose of this subsection, the Executive shall have a "Disability" at
such time as he becomes entitled to benefits under the Company's long-term
disability insurance plan as in effect from time to time.

      (c)   TERMINATION BY THE COMPANY FOR CAUSE.
            -------------------------------------

          (i)  "Cause shall mean:

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               (A)  willful and material breach by Executive of Section 5 or 6
                    of this Agreement;

               (B)  conviction of the Executive for a felony or misdemeanor
                    involving moral turpitude;

               (C)  breach by the Executive of any alcohol, drug, sexual
                    harassment or other policy of the Company which provides for
                    termination of employment for violation;

               (D)  repeated conscious disregard by the Executive of his
                    obligations under this Agreement or the failure to perform
                    at a level deemed reasonably appropriate to the Board of
                    Directors after written notice by the Board of specific
                    examples of the unacceptable performance requiring
                    improvement; or

               (E)  engagement by the Executive in conduct that constitutes
                    gross neglect or willful gross misconduct in carrying out
                    his duties under this Agreement.

          (ii) In the event the Company terminates the Executive's employment
               for Cause, he shall be entitled to and his sole remedies under
               this Agreement shall be:

               (A)  Base Salary through the date of the termination of his
                    employment for Cause, which shall be paid in a single lump
                    sum not later than 45 days following the Executive's
                    termination of employment;

               (B)  the balance of any bonus awarded and earned but not paid at
                    the time of termination, which shall be paid in a single
                    lump sum not later than 45 days following the date of
                    termination; and

               (C)  other or additional benefits then due or earned in
                    accordance with applicable plans or programs of the Company.

      (d) TERMINATION WITHOUT CAUSE OR CONSTRUCTIVE TERMINATION WITHOUT CAUSE.
In the event the Executive's employment with the Company is terminated without
Cause (which termination shall be effective as of the date specified by the
Company in a written notice to the Executive), other than due to death or
Disability, or in the event there is a Constructive Termination Without Cause
(as defined below), the Executive shall be entitled to and his sole remedies
under this Agreement shall be:

          (i)  Base Salary through the date of termination of the Executive's
               employment, which shall be paid in a single lump sum not later
               than 15 days following the Executive's termination of employment;

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          (ii) Base Salary, at the annualized rate in effect on the date of
               termination of the Executive's employment for a period of one
               year after the termination of employment (the "Severance Period")
               payable in accordance with the Company's standard payroll
               practices;

         (iii) the balance of any bonus awarded and earned but not paid at the
               time of termination, which shall be paid in a single lump sum not
               later than 45 days following the date of termination;

          (iv) immediate vesting of all stock options which are unvested, but
               scheduled to vest during the severance period all of which will
               be exercisable during the Severance Period or for the remainder
               of the exercise period, if less;

          (v)  continued participation in all medical, health and life insurance
               plans at the same benefit level at which he was participating on
               the date of the termination of his employment until the earlier
               of:

                  (A)   the end of the Severance Period; or

                  (B)    the date, or dates, he receives equivalent coverage and
                         benefits under the plans and programs of a subsequent
                         employer (such coverage and benefits to be determined
                         on a coverage-by-coverage, or benefit-by benefit,
                         basis);

                  provided that (1) if the Executive is precluded from
                  continuing his participation in any employee benefit plan or
                  program as provided in this clause (v), he shall receive cash
                  payments equal on an after-tax basis to the cost to him of
                  obtaining the benefits provided under the plan or program in
                  which he is unable to participate for the period specified in
                  this clause (v), (2) such cost shall be deemed to be the
                  lowest reasonable cost that would be incurred by the Executive
                  in obtaining such benefit himself on an individual basis, and
                  (3) payment of such amounts shall be made quarterly in
                  advance; and

          (vi) other or additional benefits then due or earned in accordance
               with applicable plans and programs of the Company.

      "Termination Without Cause" shall mean the Executive's employment is
      terminated by the Company for any reason other than Cause (as defined in
Section 4C) or due to death or disability.

      "Constructive Termination Without Cause" shall mean a termination of the
Executive's employment at his initiative as provided in this Section 4(d)
following the occurrence, without the Executive's written consent, of one or
more of the following events (except as a result of a prior termination):

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          (A)  a material diminution or change, adverse to Executive, in
               Executive's positions, titles, or offices as set forth in Section
               2;

          (B)  any other failure by the Company to perform any material
               obligation under, or breach by the Company of any material
               provision of, this Agreement that is not cured within 30 days;

          (C)  any failure to secure the agreement of any successor corporation
               or other entity to the Company to fully assume the Company's
               obligations under this Agreement.

      (e) TERMINATION FOLLOWING NON-RENEWAL. In the event that the either party
notifies the other in writing at least 60 days prior to the expiration of the
then current Term of Employment that it is electing to terminate this Agreement
at the expiration of the then current Term of Employment and the Executive's
employment terminates upon such expiration, whether at the Company's initiative
or the Executive's initiative, the Executive shall be entitled to:

            (i)   Base Salary through the date of termination of the Executive's
                  employment, which shall be paid in a single lump sum not later
                  than 45 days following such termination;

            (ii)  the balance of any bonus awarded and earned but not paid at
                  the time of termination, which shall be paid in a single lump
                  sum not later than 45 days following the date of termination;
                  and

            (iii) other or additional benefits then due or earned in accordance
                  with applicable plans and programs of the Company.

      (f) NO MITIGATION, NO OFFSET. In the event of any termination of
employment under this Section 4, the Executive shall be under no obligation to
seek other employment; amounts due the Executive under this Agreement shall not
be offset by any remuneration attributable to any subsequent employment that he
may obtain.

      (g) NATURE OF PAYMENTS. Any amounts due under this Section 4 are in the
nature of severance payments considered to be reasonable by the Company and are
not in the nature of a penalty.

5.    CONFIDENTIALITY

      (a) During the Term of Employment and thereafter, the Executive shall not,
without the prior written consent of the Company, disclose to anyone (except in
good faith in the ordinary course of business to a person who will be advised by
the Executive to keep such information confidential) or make use of any
Confidential Information (as defined below) except in the performance of his
duties hereunder or when required to do so by legal process, by any governmental
agency having supervisory authority over the business of the Company or by any
administrative or legislative body (including a committee thereof) that requires
him to divulge, disclose or make accessible such information. In the event that

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the Executive is so ordered, he shall give prompt written notice to the Company
in order to allow the Company the opportunity to object to or otherwise resist
such order.

      (b) "Confidential Information" shall mean all information concerning the
business of the Company or any subsidiary relating to any of their products,
product development, trade secrets, customers, suppliers, finances, and business
plans and strategies. Excluded from the definition of Confidential Information
is information (i) that is or becomes part of the public domain, other than
through the breach of this Agreement by the Executive, (ii) regarding the
Company's business or industry properly acquired by the Executive in the course
of his career as an executive in the Company's industry and independent of the
Executive's employment by the Company, (iii) that becomes available to the
Executive on a non-confidential basis from a source other than the Company,
provided that such source is not known by the Executive to be subject to a
confidentiality agreement or other obligation of secrecy or confidentiality
(whether pursuant to a contract, legal or fiduciary obligation or duty or
otherwise) to the Company or any other person or entity or (iv) approved for
release by the Company or which the Company makes generally available to third
parties without an obligation of confidentiality. For this purpose, information
known or available generally within the trade or industry of the Company or any
subsidiary shall be deemed to be known or available to the public.

6.    NON-COMPETITION; NON-SOLICITATION.
      ---------------------------------

      The Executive acknowledges that his employment with the Company will, of
necessity, provide him with specialized, unique knowledge and confidential
information and that, in light of the competitive nature of the Company's
business, the Company could be harmed if such knowledge and information were
used in competition with the Company. The Executive further acknowledges that
the Company would not enter into this Agreement and undertake the substantial
obligations under this Agreement without the Executive's agreement to the
following provisions of this Section 6:

      (a) During the Restricted Period (as defined below) he will not, directly
or indirectly, as an officer, director, stockholder, partner, associate,
employee, consultant, owner, agent, co-venturer or otherwise, become or be
interested in or be associated with any other corporation, firm or business
engaged in the manufacture, marketing or sale of products which compete directly
with products of the Company. The Executive's ownership, directly or indirectly,
of not more than three percent (3%) of the issued and outstanding stock of any
corporation or other entity, the shares of which are traded on a national
securities exchange or the Nasdaq Stock Market, shall not in any event be deemed
to be a violation of the provisions of this Section 6(a).

      (b) During the Restricted Period, the Executive shall not call upon,
solicit, divert or take away, or attempt to call upon, solicit, divert or take
away, business of a type the same or similar to the business as conducted by the
Company prior to the date of termination of the Executive's employment with the
Company from any of the Customers of the Company upon whom he called or whom he
solicited or to whom he catered or with whom he became acquainted after entering
the employ of the Company.

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      (c) The Executive acknowledges and agrees that during the time of his
employment with the Company, he will gain valuable information about the
identity, qualifications and ongoing performance of the employees of the
Company. During the Restricted Period, the Executive shall not (i) hire, employ,
offer employment to, or seek to hire, employ or offer employment to, any of the
Company's senior level employees with whom he had contact prior to such
termination of employment or (ii) solicit or encourage any such senior level
employee to seek or accept employment with any other person or entity.

      (d) The Executive represents and warrants that the knowledge, skills and
abilities he currently possesses are sufficient to permit him, in the event of
his termination of employment hereunder for any reason, to earn a livelihood
satisfactory to himself without violating any provision of this Agreement.

      (e) For the purposes of this Section 6, "Restriction Period" shall mean
the period beginning on the date hereof and ending with:

            (i)   in the case of a termination of the Executive's employment
                  pursuant to Section 4(c) above, or if the Executive terminates
                  his employment other than pursuant to Constructive Termination
                  Without Cause or pursuant to Section 4(3), the first
                  anniversary of such termination;

            (ii)  in the case of a termination of the Executive's employment
                  pursuant to Section 4(d) above, the end of the Severance
                  Period; and

            (iii) in the case of a termination of the Executive's employment
                  pursuant to Section 4(e) above, the date of such termination;
                  PROVIDED, HOWEVER, that within 10 days after the Executive
                  announces that he will not renew his employment hereunder at
                  the end of the then current Term of Employment the Company may
                  notify the Executive that it will cause the Restriction Period
                  to be 12 months and, in consideration for such period, the
                  Company will pay to the Executive the amounts specified in
                  Section 4(e) above plus the following:

                    (A) continued participation in all medical and dental plans
                    at the same benefit level at which he was participating on
                    the date of the termination of his employment until the
                    earlier of:

                        a. the end of the Restriction Period; or

                        b. the date, or dates, he received equivalent coverage
                        and benefits under the plans and programs of a
                        subsequent employer (such coverage and benefits to be
                        determined on a coverage-by-coverage, or benefit-by-
                        benefit, basis);

                  provided that (x) if the Executive is precluded from
                  continuing his participation in any employee benefit plan or
                  program as provided in this clause (iii) of this Section 4(e),

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                  he shall receive cash payments equal on an after-tax basis to
                  the cost to him of obtaining the benefits provided under the
                  plan or program in which he is unable to participate for the
                  period specified in this clause (iii) of this Section 4(e),
                  (y) such cost shall be deemed to be the lowest cost that would
                  be incurred by the Executive in obtaining such benefit himself
                  on an individual basis, and (z) payment of such amounts shall
                  be made quarterly in advance; and

                    (B) Base Salary, at the annualized rate in effect on the
                    date of the Company's notice, through the end of the
                    Restriction Period, payable in accordance with the Company's
                    standard payroll practices.

7.    REMEDIES.
      --------

      In addition to whatever other rights and remedies the Company may have at
equity or in law, if the Executive breaches any of the provisions contain in
Sections 5 or 6 above, the Company (a) shall have the right to immediately
terminate all payments and benefits due under this Agreement and (b) shall have
the right to seek injunctive relief. The Executive acknowledges that such a
breach would cause irreparable injury and that money damages would not provide
an adequate remedy for the Company.

8.    RESOLUTION OF DISPUTES.
      ----------------------

      Any disputes arising under or in connection with this Agreement shall be
resolved by binding arbitration, to be held in Washington, DC in accordance with
the rules and procedures of the American Arbitration Association, except that
disputes arising under or in connection with Sections 5 and 6 above shall be
submitted to a court of appropriate jurisdiction. Judgment upon the award
rendered by the arbitrators) may be entered in any court having jurisdiction
thereof. Each party shall bear his or its own costs of the arbitration or
litigation, including, without limitation, attorneys' fees. Pending the
resolution of any arbitration or court proceeding, the Company shall continue
payment of all amounts and benefits due the Executive under this Agreement.

9.    INDEMNIFICATION.
      ----------------

      (a) The Company agrees that if the Executive is made a party, or is
threatened to be made a party, to any action, suit or proceeding, whether civil,
criminal, administrative or investigative (a "Proceeding"), by reason of the
fact that he is or was a director, officer or employee of the Company or any
subsidiary or is or was serving at the request of the Company or any subsidiary
as a director, officer, member, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, including service with
respect to employee benefit plans, whether or not the basis of such Proceeding
is the Executive's alleged action in an official capacity while serving as a
director, officer, member, employee or agent, the Executive shall be indemnified
and held harmless by the Company to the fullest extent legally permitted or
authorized by the Company's certificate of incorporation or bylaws or
resolutions of the Company's certificate of incorporation or by laws or
resolutions of the Company's Board of Directors or, if greater, by the laws of
the State of Delaware, against all cost, expense, liability and loss (including,

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without limitation, attorney's fees, judgments, fines, ERISA excise taxes or
penalties and amounts paid or to be paid in settlement) reasonably incurred or
suffered by the Executive in connection therewith, and such indemnification
shall continue as to the Executive even if he has ceased to be a director,
member, officer, employee or agent of the Company or other entity and shall
inure to the benefit of the Executive's heirs, executors and administrators. The
Company shall advance to the Executive all reasonable costs and expenses
incurred by him in connection with a Proceeding within 20 days after receipt by
the Company of a written request for such advance. Such request shall include an
undertaking by the Executive to repay the amount of such advance if it shall
ultimately be determined that he is not entitled to be indemnified against such
costs and expenses.

      (b) Neither the failure of the Company (including its board of directors,
independent legal counsel or stockholders) to have made a determination prior to
the commencement of any proceeding concerning payment of amounts claimed by the
Executive under Section 9(a) above that indemnification of the Executive is
proper because he has met the applicable standard of conduct, nor a
determination by the Company (including its board of directors, independent
legal counsel or stockholders) that the Executive has not met such applicable
standard of conduct, shall create a presumption that the Executive has not met
the applicable standard of conduct.

      (c) The Company agrees to continue and maintain a directors and officers'
liability insurance policy covering the Executive to the extent the Company
provides such coverage for its other executive officers.

10.   EFFECT OF AGREEMENT ON OTHER BENEFITS.
      -------------------------------------

      Except as specifically provided in this Agreement, the existence of this
Agreement shall not be interpreted to preclude, prohibit or restrict the
Executive's participation in any other employee benefit or other plans or
programs in which he currently participates.

11.   ASSIGNABILITY; BINDING NATURE.
      -----------------------------

      This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors, heirs (in the case of the Executive)
and permitted assigns. No rights or obligations of the Company under this
Agreement may be assigned or transferred by the Company except that such rights
or obligations may be assigned or transferred in connection with the sale or
transfer of all or substantially all of the assets of the Company, provided that
the assignee or transferee is the successor to all or substantially all of the
assets of the Company and such assignee or transferee assumes the liabilities,
obligations and duties of the Company, as contained in this Agreement, either
contractually or as a matter of law. The Company further agrees that, in the
event of a sale or transfer of assets as described in the preceding sentence, it
shall take whatever action it legally can in order to cause such assignee or
transferee to expressly assume the liabilities, obligations and duties of the
Company hereunder. No fights or obligations of the Executive under this
Agreement may be assigned or transferred by the Executive other than his rights
to compensation and benefits, which may be transferred only by will or operation
of law, except as provided in Section 17 below.

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12.   WARRANTY OF EXECUTIVE.
      ---------------------

      As an inducement to the Company to enter into this Agreement, the
Executive represents and warrants that he is not a party to any other agreement
or obligation for personal services, and that there exists no impediment or
restraint, contractual or otherwise, on his power, right or ability to enter
into this Agreement and to perform his duties and obligations hereunder.

13.   COMPANY REPRESENTATIONS.
      -----------------------

   The Company represents to the Executive that this Agreement has been duly
authorized, executed and delivered by the Company and is a legal, valid and
binding obligation of the Company and that the execution, delivery and
performance of this Agreement by the Company will not breach or be in conflict
with any agreements to which the Company is a party or by which it is bound.

14.   ENTIRE AGREEMENT.
      ----------------

      This Agreement contains the entire understanding and agreement between the
parties concerning the subject matter hereof and supersedes all prior
agreements, understandings, discussions, negotiations and undertakings, whether
written or oral, between the parties with respect thereto.

15.   AMENDMENTS; WAIVERS.
      -------------------

      No provision in this Agreement may be amended unless such amendment is
agreed to in writing and signed by the Executive and an authorized officer of
the Company. No waiver by either Party of any breach by the other Party of any
condition or provision contained in this Agreement to be performed by such other
Party shall be deemed a waiver of a similar or dissimilar condition or provision
at the same or any prior or subsequent time. Any waiver must be in writing and
signed by the Executive or an authorized officer of the Company, as the case may
be. No failure to exercise and no delay in exercising any right, remedy or power
hereunder shall preclude any other or further exercise of any other right,
remedy or power provided herein or by law or in equity.

16.   SEVERABILITY OF PROVISIONS.
      ---------------------------

      In the event that any provision or any portion thereof should ever be
adjudicated by a court of competent jurisdiction to exceed the time or other
limitations permitted by applicable law, as determined by such court in such
action, then such provisions shall be deemed reformed to the maximum time or
other limitations permitted by applicable law, the parties hereby acknowledging
their desire that in such event such action be taken. In addition to the above,
the provisions of this Agreement are severable, and the invalidity or
unenforceability of any provision or provisions of this Agreement or portions
thereof shall not affect the validity or enforceability of any other provision,
or portion of this Agreement, which shall remain in full force and effect as if
executed with the unenforceable or invalid provision or portion thereof
eliminated. Notwithstanding the foregoing, the parties hereto affirmatively
represent, acknowledge and agree that it is their intention that this Agreement

                                       12

<PAGE>

and each of its provisions are enforceable in accordance with their terms and
expressly agree not to challenge the validity or enforceability of this
Agreement or any of its provisions, or portions or aspects thereof, in the
future. The parties hereto are expressly relying upon this representation,
acknowledgment and agreement in determining to enter into this Agreement.

17.   BENEFICIARIES/REFERENCES.
      ------------------------

      The Executive shall be entitled, to the extent permitted under any
applicable law, to select and change a beneficiary or beneficiaries to receive
any compensation or benefit payable hereunder following the Executive's death by
giving the Company written notice thereof. In the event of the Executive's death
or a judicial determination of his incompetence, reference in this Agreement to
the Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate or other legal representative.

18.   GOVERNING LAW.
      --------------

      This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the Commonwealth of Virginia without reference to
principles of conflict of laws. The parties hereby irrevocably consent to the
service of any and all process in any action or proceeding arising out of or
relating to this Agreement by the mailing of copies of such process to the
parties at the address specified in Section 19 hereof.

19.   NOTICES.
      -------

      All notices, requests, demands and other communications which are required
or may be given under this Agreement shall be in writing and shall be deemed to
have been duly given when received if personally delivered; when transmitted if
transmitted by telecopy, electronic or digital transmission method upon receipt
of telephonic or electronic confirmation; the day after it is sent, if sent for
next day delivery to a domestic address by a recognized overnight delivery
service (e.g., Federal Express); and upon receipt, if sent by certified or
registered mail, return receipt requested. In each case notice shall be sent to
the Company c/o the Board of Directors at the Company's principal executive
offices and to the Executive at his last known permanent address, or to such
other place as either party may designate as to itself or himself by written
notice to the other.

20.   HEADINGS.
      ---------

      The headings of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement.

21.   COUNTERPARTS.
      ------------

      This Agreement may be executed in several counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute
one and the same Agreement.

                                       13

<PAGE>

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

                                          NETRIX CORPORATION

                                          By:  /s/ Steven T. Francesco
                                             -----------------------------------

                                          Title:  Chairman and Chief Executive
                                                    Officer
                                                --------------------------------

                                          /s/ Greg McNulty
                                          --------------------------------------
                                          Greg McNulty

                                       14<PAGE>   1

                                                                     EXHIBIT 4.3

                          AMYLIN PHARMACEUTICALS, INC.

                         COMMON STOCK PURCHASE AGREEMENT

                                 OCTOBER 6, 1999

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                  PAGE
                                                                                  ----
<S>      <C>                                                                     <C>
1.       AUTHORIZATION OF SALE OF THE SHARES.......................................1

2.       AGREEMENT TO SELL AND PURCHASE THE SHARES.................................1

         2.1      Sale of the Shares...............................................1

         2.2      Separate Agreements..............................................1

         2.3      Acceptance of Proposed Purchase of Shares........................1

3.       DELIVERY OF THE SHARES AT THE CLOSING.....................................1

4.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY..................2

         4.1      Organization and Qualification...................................2

         4.2      Due Execution, Delivery and Performance of the Agreements........2

         4.3      Issuance, Sale and Delivery of the Shares........................2

         4.4      Public Information; Financial Statements.........................3

         4.5      No Material Change...............................................4

         4.6      Eligibility for Form S-3.........................................4

         4.7      Litigation.......................................................4

         4.8      Governmental Consents............................................4

         4.9      Use of Proceeds..................................................4

5.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER................4

         5.1      Investment Representations.......................................4

         5.2      Requisite Power and Authority....................................5

         5.3      Rule 144.........................................................5

         5.4      Covenants........................................................5

6.       SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS....................6

7.       REGISTRATION OF THE COMMON STOCK; COMPLIANCE WITH THE SECURITIES ACT......6

         7.1      Registration Procedures and Expenses.............................6

         7.2      Notification of Changes..........................................7

         7.3      Indemnification..................................................7

         7.4      Termination of Conditions and Obligations........................9

         7.5      Legends.........................................................10

8.       BROKER'S FEE.............................................................10

9.       NOTICES..................................................................10

10.      CHANGES..................................................................11
</TABLE>

<PAGE>   3

<TABLE>
<CAPTION>
<S>      <C>                                                                     <C>
11.      HEADINGS.................................................................11

12.      SEVERABILITY.............................................................11

13.      GOVERNING LAW............................................................11

14.      COUNTERPARTS.............................................................11

15.      SUCCESSORS AND ASSIGNS...................................................11

16.      FURTHER ACTIONS..........................................................11

17.      ENTIRE AGREEMENT.........................................................11

18.      PAYMENT OF FEES AND EXPENSES.............................................12

19.      CONFIDENTIAL DISCLOSURE AGREEMENT........................................12
</TABLE>

<PAGE>   4
                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT (the "Agreement") is made as of October
6, 1999 between AMYLIN PHARMACEUTICALS, INC., a Delaware corporation with its
principal place of business at 9373 Towne Centre Drive, Suite 250, San Diego,
California 92121 (the "Company"), and the purchaser whose name and address are
set forth on the signature page hereof (the "Purchaser").

         IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Purchaser agree as follows:

1.       AUTHORIZATION OF SALE OF THE SHARES. Subject to the terms and
conditions of this Agreement, the Company has authorized the sale of up to four
million (4,000,000) shares of Common Stock of the Company (the "Shares") at a
price of five dollars ($5.00) per Share.

2.       AGREEMENT TO SELL AND PURCHASE THE SHARES.

         2.1 SALE OF THE SHARES. At the Closing (as defined in Section 3), the
Company will sell to the Purchaser, and the Purchaser will buy from the Company,
upon the terms and conditions hereinafter set forth, the number of Shares set
forth next to Purchaser's name on the signature page hereof. The Shares shall
have the rights, preferences, privileges and restrictions set forth in the
Company's Amended and Restated Certificate of Incorporation, as amended to date
(the "Certificate").

         2.2 SEPARATE AGREEMENTS. The Company proposes to enter the same form of
purchase agreement with certain other investors (the "Other Purchasers") and
expects to complete sales of Shares to them. The Purchaser and the Other
Purchasers are hereinafter sometimes collectively referred to as the
"Purchasers," and this Agreement and the agreements executed by the Other
Purchasers are hereinafter sometimes collectively referred to as the
"Agreements."

         2.3 ACCEPTANCE OF PROPOSED PURCHASE OF SHARES. The Company shall have
no obligation hereunder with respect to the Purchaser until the Company shall
execute and deliver to the Purchaser an executed copy of this Agreement. If this
Agreement is not executed and delivered by the Company, this Agreement shall be
of no further force or effect.

3.       DELIVERY OF THE SHARES AT THE CLOSING. Subject to Section 2.3 herein,
the completion of the purchase and sale of the Shares to be issued pursuant to
this Agreement (the "Closing") shall occur (i) upon receipt by the Company of
(A) a copy of this Agreement which has been executed on Purchaser's behalf, (B)
a completed Stock Certificate Questionnaire, the form of which is attached
hereto as EXHIBIT A, and (C) the aggregate purchase price for the Shares, or
(ii) following the occurrence of the actions set forth in clause (i) above on
such other date as may be agreed to by the Company and the Purchaser. At the
Closing, the Company shall deliver to the Purchaser or the Purchaser's custodian
bank, in accordance with the Purchaser's delivery instructions, (A) a copy of
this Agreement which has been executed on behalf of the Company, and (B) one or
more stock certificates registered in the name of the Purchaser, or in such
nominee name(s) as designated by the Purchaser, representing the number of
Shares

                                       1.
<PAGE>   5

referred to in Section 2 above. The name(s) in which the stock certificates are
to be issued shall be set forth in the Stock Certificate Questionnaire attached
hereto as EXHIBIT A, as completed by Purchaser. The Company's obligation to
complete the purchase and sale of the Shares and deliver such stock
certificate(s) to the Purchaser at the Closing shall be subject to the following
conditions, any one or more of which may be waived in writing by the Company:
(a) subject to delivery of the Share certificates to the Purchaser or
Purchaser's custodian bank, receipt by the Company of immediately available
funds, by check or wire transfer, in the full amount of the purchase price for
the Shares being purchased hereunder; (b) the accuracy of the representations
and warranties made by the Purchaser herein as of the Closing; and (c) the
fulfillment of those undertakings of the Purchaser to be fulfilled prior to the
Closing. The Purchaser's obligation to accept delivery of such stock
certificate(s) and to pay for the Shares evidenced thereby shall be subject to
the following conditions: (a) the accuracy of the representations and warranties
made by the Company herein as of the Closing; (b) the purchase by Purchasers
other than the Purchaser hereunder, of a minimum of 800,000 Shares; and (c) the
fulfillment of those undertakings of the Company to be fulfilled prior to the
Closing.

4.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. The Company
hereby represents and warrants to, and covenants with, the Purchaser as of the
date of this Agreement as follows:

         4.1 ORGANIZATION AND QUALIFICATION. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has all requisite corporate power and authority to conduct its
business as currently conducted and is duly qualified as a foreign corporation
and in good standing in all jurisdictions in which the character of the property
owned or leased or the nature of the business transacted by it makes
qualification necessary (except where the failure to be so qualified would not
have a material adverse effect on the business, properties, financial condition
or results or operations of the Company).

         4.2 DUE EXECUTION, DELIVERY AND PERFORMANCE OF THE AGREEMENTS. The
Company's execution, delivery and performance of this Agreement (a) has been
duly authorized by all requisite corporate action by the Company, and (b) will
not violate the Certificate or Bylaws of the Company, each as amended to date,
or violate or result in a breach of or constitute a default under any provision
of any material indenture, mortgage, agreement, contract or other material
instrument to which the Company or any subsidiary is a party or by which the
Company or any subsidiary or any of their respective properties or assets is
bound as of the date hereof. Upon execution and delivery, and assuming the valid
execution hereof by the Purchaser, this Agreement will constitute a valid and
binding obligation of the Company, enforceable in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors' and contracting
parties' rights generally and except as enforceability may be subject to general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law) and except as the indemnification agreements
of the Company in Section 7.3 hereof may be legally unenforceable.

         4.3 ISSUANCE, SALE AND DELIVERY OF THE SHARES. The authorized capital
stock of the Company consists of one hundred million (100,000,000) shares of
Common Stock, par value one-tenth of one cent ($.001) per share, forty-nine
million nine hundred eighty thousand eight

                                       2.
<PAGE>   6

hundred thirty-eight (49,980,838) shares of which are issued and outstanding as
of September 29, 1999, four million six hundred fifty-five thousand two hundred
forty-six (4,655,246) shares of which are subject to outstanding options as of
September 29, 1999, two million two hundred thirteen thousand five hundred
ninety (2,213,590) shares of which are reserved for future issuance to
employees, directors and consultants pursuant to the Company's stock plans,
including the Company's 1991 Stock Option Plan, the Company's Non-Employee
Directors' Stock Option Plan, the Company's Employee Stock Purchase Plan and the
Company's Directors' Deferred Compensation Plan as of September 29, 1999, and
one million five hundred fifty thousand nine hundred fifty (1,550,950) shares of
which are subject to outstanding warrants, and seven million five hundred
thousand (7,500,000) shares of Preferred Stock, par value one-tenth of one cent
($.001) per share, none of which, prior to the Closing, are issued and
outstanding. All issued and outstanding shares of the Company's Common Stock
have been duly authorized and validly issued, and are fully paid and
nonassessable. When issued, delivered to Purchaser or Purchaser's custodian bank
and paid for by Purchaser in accordance with the terms and conditions of this
Agreement, the Shares to be sold hereunder will be validly issued, fully paid
and nonassessable and will be delivered by the Company free and clear of all
liens, pledges, claims, encumbrances, security interests or other restrictions,
except for restrictions on transfer imposed to ensure compliance with the
Securities Act of 1933, as amended (the "Securities Act").

         4.4 PUBLIC INFORMATION; FINANCIAL STATEMENTS. The Company represents
that it has furnished or will furnish, if requested by the Purchaser prior to
the Closing, to Purchaser copies of the Company's: (i) Annual Report on Form
10-K for the year ended December 31, 1998; (ii) Quarterly Reports on Form 10-Q
for the quarters ended March 31, 1999 and June 30, 1999; (iii) Notice of Annual
Meeting and Proxy Statement for the Company's 1999 Annual Meeting of
Stockholders, dated April 15, 1999; (iv) Registration Statement on Form S-3
(Registration No. 333-87033); and (v) press releases since June 30, 1999. All of
the foregoing public documents are collectively referred to herein as the
"Public Documents." The Company has filed in a timely manner all documents that
the Company was required to file with the Securities and Exchange Commission
(the "Commission") under Sections 13, 14(a) and 15(d) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), during the twelve (12) months
preceding the date of this Agreement. As of their respective filing dates (or,
if amended, when amended), all documents filed by the Company with the
Commission (the "SEC Documents") complied in all material respects with the
requirements of the Exchange Act. As of their respective dates, none of the SEC
Documents contained any untrue statement of material fact or omitted to state a
material fact required (under the federal securities laws in connection with the
sale of the Shares) to be stated therein or necessary to make the statements
made therein, in light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC
Documents (the "Financial Statements") comply as to form in all material
respects with applicable accounting requirements and with the published rules
and regulations of the SEC with respect thereto. The Financial Statements have
been prepared in accordance with generally accepted accounting principles
consistently applied and fairly present the financial position of the Company at
the dates thereof and the results of its operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal,
recurring adjustments).

                                       3.
<PAGE>   7

         4.5 NO MATERIAL CHANGE. As of the date hereof, there has been no
material adverse change and no material adverse development in the business,
properties, operations, financial condition, results of operations or prospects
of the Company since June 30, 1999.

         4.6 ELIGIBILITY FOR FORM S-3. The Company represents and warrants as of
the date hereof that it meets the requirements for the use of Form S-3 for
registration of the sale by the Purchaser of the Shares, and for the period
during which the Company is required pursuant to Section 7.1(c) herein to keep
the Registration Statement (as defined below) effective, the Company shall file
all reports required to be filed by the Company with the Commission in a timely
manner and take all other necessary action so as to maintain such eligibility
for the use of Form S-3.

         4.7 LITIGATION. Except as set forth in the Company's SEC Documents,
there is no pending or, to the Company's knowledge, threatened, action, suit or
other proceeding to which the Company is a party or to which its property or
assets are subject.

         4.8 GOVERNMENTAL CONSENTS. No consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, any
federal, state, or local governmental authority on the part of the Company is
required in connection with the consummation of the transactions contemplated by
this Agreement except for (a) compliance with the securities and blue sky laws
in the states and other jurisdictions in which Shares are offered and/or sold,
which compliance will be effected by the Company in accordance with such laws,
and (b) the filing of a registration statement and all amendments thereto with
the Commission as contemplated by Section 7.1 of this Agreement.

         4.9 USE OF PROCEEDS. The Company intends to use the proceeds from the
sale of the Shares for working capital purposes.

5.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER.

         The Purchaser represents and warrants to, and covenants with, the
Company as follows:

         5.1 INVESTMENT REPRESENTATIONS. The Purchaser represents and warrants
to, and covenants with, the Company that: (i) the Purchaser, taking into account
the personnel and resources it can practically bring to bear on the purchase of
the Shares contemplated hereby, is knowledgeable, sophisticated and experienced
in making, and is qualified to make, decisions with respect to investments in
shares presenting an investment decision like that involved in the purchase of
the Shares, including investments in securities issued by the Company, and has
requested, received, reviewed and considered all information it deems relevant
in making an informed decision to purchase the Shares, including all of the
Company's Public Documents; (ii) the Purchaser is acquiring the number of Shares
referred to in Section 2 above for its own account for investment only and with
no present intention of distributing any of such Shares or any arrangement or
understanding with any other persons regarding the distribution of such Shares;
(iii) the Purchaser has completed or caused to be completed the Stock
Certificate Questionnaire attached hereto as EXHIBIT A and the information
provided therein by Purchaser is true and correct to the best knowledge of the
Purchaser as of the date hereof; (iv) the Purchaser has, in connection with its
decision to purchase the number of Shares set forth in Section 2 above, relied
solely upon the information delivered to the Purchaser as described in clause
(i)

                                       4.
<PAGE>   8

above and the representations and warranties of the Company contained herein;
and (v) the Purchaser is an "accredited investor" within the meaning of Rule 501
of Regulation D promulgated under the Securities Act.

         5.2 REQUISITE POWER AND AUTHORITY. The Purchaser further represents and
warrants to, and covenants with, the Company that (i) the Purchaser has full
right, power, authority and capacity to enter into this Agreement and to
consummate the transactions contemplated hereby and has taken all necessary
action to authorize the execution, delivery and performance of this Agreement,
and (ii) upon the execution and delivery of this Agreement, this Agreement shall
constitute a valid and binding obligation of the Purchaser enforceable in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors' and contracting parties' rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law)
and except as the indemnification agreements of the Purchaser in Section 7.3
hereof may be legally unenforceable.

         5.3 RULE 144. Purchaser acknowledges and agrees that the Shares
acquired by Purchaser hereunder must be held indefinitely unless they are
subsequently registered under the Securities Act or an exemption from such
registration is available. Purchaser has been advised or is aware of the
provisions of Rule 144 promulgated under the Securities Act, which permits
limited resale of securities in a private placement subject to the satisfaction
of certain conditions, including, among other things: the availability of
certain current public information about the Company, the resale occurring not
less than one year after a party has purchased and paid for the security to be
sold, the sale being made through an unsolicited "broker's transaction" or in
transactions directly with a market maker (as said term is defined under the
Securities Exchange Act of 1934, as amended (the "Exchange Act")) and the number
of shares being sold during any three-month period not exceeding specified
limitations.

         5.4 COVENANTS. The Purchaser hereby covenants with the Company as
follows: (i) prior to the effective date of the Registration Statement
referenced in Section 7.1(a) below (the "Effective Date"), the Purchaser shall
not transfer any Shares except in compliance with the Securities Act and the
rules and regulations promulgated thereunder, and any transferee of Shares prior
to the Effective Date shall agree in advance in a writing acceptable to the
Company to be subject to all of the provisions of this Agreement with respect to
the Shares; and (ii) commencing as of the Effective Date, the Purchaser shall
not make any sale of the Shares, if any, without effectively causing the
prospectus delivery requirement under the Securities Act to be satisfied, and
the Purchaser acknowledges and agrees that on and after the Effective Date, such
Shares are not transferable on the books of the Company unless the certificate
submitted to the transfer agent evidencing the Shares is accompanied by a
separate purchaser's certificate: (1) in the form of EXHIBIT B hereto, (2)
executed by the Purchaser or by an officer of, or other authorized person
designated by, the Purchaser, and (3) to the effect that (A) the Shares have
been sold in accordance with the Registration Statement and (B) the requirement
of delivering a current prospectus has been satisfied. The Purchaser
acknowledges that there may occasionally be times when the Company must suspend
the use of the prospectus forming a part of the Registration Statement until
such time as an amendment to the Registration Statement has been filed by the
Company and declared effective by the Securities and Exchange Commission (the

                                       5.
<PAGE>   9

"Commission"), or until such time as the Company has filed an appropriate report
with the Commission pursuant to the Securities Exchange Act of 1934, as amended.
The Purchaser hereby covenants that it will not sell any Shares pursuant to said
prospectus during the period commencing at the time at which the Company gives
the Purchaser notice of the suspension of the use of said prospectus and ending
at the time the Company gives the Purchaser notice that the Purchaser may
thereafter effect sales pursuant to said prospectus. The Purchaser further
covenants to promptly notify the Company of the sale of any of its Shares.

6. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS. Notwithstanding any
investigation made by any party to this Agreement, all covenants, agreements,
representations and warranties made by the Company and the Purchaser herein and
in the certificates for the Shares delivered pursuant hereto shall survive the
execution of this Agreement, the delivery to the Purchaser of the Shares being
purchased and the payment therefor.

7. REGISTRATION OF THE COMMON STOCK; COMPLIANCE WITH THE SECURITIES ACT.

         7.1 REGISTRATION PROCEDURES AND EXPENSES.  The Company shall:

             (a) within 120 days following the closing, prepare and file with
the Commission a registration statement on Form S-3 (the "Registration
Statement") in order to register with the Commission the sale of all the Shares
(collectively, the "Registrable Securities") by the Purchasers from time to time
through underwriters, agents or otherwise, in negotiated or market transactions
or through the automated quotation system of Nasdaq or the facilities of any
national securities exchange on which the Company's Common Stock is then traded
or in privately negotiated transactions or pursuant to such other method or
methods of distribution as Purchaser may require. It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this
Section 7.1 that the Purchaser shall furnish to the Company such information
regarding itself, the Registrable Securities to be sold by Purchaser, and the
intended method of disposition of such securities as shall be required to effect
the registration of the Registrable Securities. Notwithstanding the foregoing,
the Company shall not be required to file or effect a registration pursuant to
this Section 7.1 if and for so long as any condition specified in Section 7.1(c)
shall exist and the Company shall have notified the Purchaser's thereof in
accordance with such section;

             (b) use reasonable efforts, subject to the receipt of necessary
information from the Purchasers, to cause the Registration Statement to become
effective as soon as commercially practicable following the filing thereof with
the Commission;

             (c) prepare and file with the Commission such amendments and
supplements to the Registration Statement and the prospectus used in connection
therewith and take such other actions as may be necessary to keep the
Registration Statement continually effective and not misleading until the
earliest of (A) the first anniversary date of the Closing, or (B) such date as
all of the Shares held by all of the Purchasers have been resold.
Notwithstanding the foregoing, each Purchaser acknowledges that there may
occasionally be times when the Company, in the good faith judgment of its Chief
Executive Officer or its Board of Directors, determines it must suspend such
Purchaser's ability to sell Shares pursuant to the Registration Statement until
such time as an amendment to the Registration Statement has been filed by the

                                       6.
<PAGE>   10

Company and declared effective by the Commission, or until such time as the
Company has filed an appropriate report with the Commission pursuant to the
Securities Exchange Act of 1934, as amended (a "Suspension"). The Purchaser
agrees that, upon receipt of any notice from the Company of a Suspension, the
Purchaser will not sell any Shares pursuant to the Registration Statement until
the Purchaser is advised in writing by the Company that the use of the
applicable prospectus may be resumed;

             (d) furnish to the Purchaser with respect to the Registrable
Securities registered under the Registration Statement such number of copies of
prospectuses and preliminary prospectuses in conformity with the requirements of
the Securities Act, in order to facilitate the public sale or other disposition
of all or any of the Registrable Securities by the Purchaser; provided, however,
that the obligation of the Company to deliver copies of prospectuses or
preliminary prospectuses to the Purchaser shall be subject to the receipt by the
Company of reasonable assurances from the Purchaser that the Purchaser will
comply with the applicable provisions of the Securities Act and of such other
securities or blue sky laws as may be applicable in connection with any use of
such prospectuses or preliminary prospectuses;

             (e) file documents required of the Company for normal blue sky
clearance in states specified in writing by the Purchaser; provided, however,
that the Company shall not be required to qualify to do business or consent to
service of process in any jurisdiction in which it is not now so qualified or
has not so consented; and

             (f) bear all expenses incurred by the Company in connection with
the procedures in paragraphs (a) through (e) of this Section 7.1 and the
registration of the Registrable Securities pursuant to the Registration
Statement.

         7.2 NOTIFICATION OF CHANGES. The Purchaser agrees that it will promptly
notify the Company of any changes in the material information set forth in the
Registration Statement regarding the Purchaser or its plan of distribution with
respect to the Registrable Securities, as applicable.

         7.3 INDEMNIFICATION.

             (a) the term "Selling Stockholder" shall mean the Purchaser and, if
the Purchaser is an institution, the Purchaser's directors or trustees, officers
and employees and each person who controls the Purchaser within the meaning of
the Securities Act;

             (b) the term "Registration Statement" shall include any final
prospectus, exhibit, supplement or amendment included in or relating to the
Registration Statement referred to in Section 7.1; and

             (c) the term "untrue statement" shall include any untrue statement
or alleged untrue statement, or any omission or alleged omission, to state in
the Registration Statement a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

         The Company agrees to indemnify and hold harmless each Selling
Stockholder from and against any losses, claims, damages or liabilities to which
such Selling Stockholder may become

                                       7.
<PAGE>   11

subject (under the Securities Act or otherwise) insofar as such losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) arise out
of, or are based upon, any untrue statement contained in the Registration
Statement on the Effective Date thereof, or arise out of any failure by the
Company to fulfill any undertaking herein or included in the Registration
Statement, and the Company will reimburse such Selling Stockholder for any
reasonable legal or other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim; provided,
however, that the Company shall not be liable in any such case to the extent
that such loss, claim, damage or liability arises out of, or is based upon, an
untrue statement made in such Registration Statement in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such Selling Stockholder specifically for use in preparation of the Registration
Statement, or the failure of such Selling Stockholder to comply with the
covenants and agreements contained in Section 5 or 7.2 hereof respecting sale of
the Registrable Securities or any statement or omission in any prospectus that
is corrected in any subsequent prospectus that was delivered to the Purchaser
prior to the pertinent sale or sales by the Purchaser.

         The Purchaser agrees to indemnify and hold harmless the Company (and
each person, if any, who controls the Company within the meaning of Section 15
of the Securities Act, each officer of the Company who signs the Registration
Statement and each director of the Company) from and against any losses, claims,
damages or liabilities to which the Company (or any such officer, director or
controlling person) may become subject (under the Securities Act or otherwise),
insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) arise out of, or are based upon, any failure to
comply with the covenants and agreements contained in Section 5 or 7.2 hereof
respecting sale of the Registrable Securities, or any untrue statement contained
in the Registration Statement on the Effective Date if such untrue statement was
made in reliance upon and in conformity with written information furnished by or
on behalf of the Purchaser specifically for use in preparation of the
Registration Statement, and the Purchaser will reimburse the Company (or such
officer, director or controlling person, as the case may be), for any legal or
other expenses reasonably incurred in investigating, defending or preparing to
defend any such action, proceeding or claim. In no event shall the liability of
the Purchaser hereunder be greater in amount than the dollar amount of the gross
proceeds received by the Purchaser upon the sale of Registrable Securities
giving rise to such indemnification obligation.

         Promptly after receipt by any indemnified person of a notice of a claim
or the beginning of any action in respect of which indemnity is to be sought
against an indemnifying person pursuant to this Section 7.3, such indemnified
person shall notify the indemnifying person in writing of such claim or of the
commencement of such action, and, subject to the provisions hereinafter stated,
in case any such action shall be brought against an indemnified person and such
indemnifying person shall have been notified thereof, such indemnifying person
shall be entitled to participate therein, and, to the extent it shall wish, to
assume the defense thereof, with counsel reasonably satisfactory to such
indemnified person. After notice from the indemnifying person to such
indemnified person of its election to assume the defense thereof, such
indemnifying person shall not be liable to such indemnified person for any legal
expenses subsequently incurred by such indemnified person in connection with the
defense thereof; provided, however, that if there exists or shall exist a
conflict of interest that would make it inappropriate, in the opinion of counsel
to the indemnified person, for the same counsel to

                                       8.
<PAGE>   12

represent both the indemnified person and such indemnifying person or any
affiliate or associate thereof, the indemnified person shall be entitled to
retain its own counsel at the expense of such indemnifying person; provided,
however, that no indemnifying person shall be responsible for the fees and
expenses of more than one separate counsel for all indemnified parties.

         If the indemnification provided for in this Section 7.3 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with
respect to any losses, claims, damages or liabilities referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other
in connection with the act or omission that resulted in such loss, claim, damage
or liability, as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and of the indemnified party shall be
determined by a court of law by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the indemnifying party or by
the indemnified party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission;
provided, however, that (i) no person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any seller of Shares who was not guilty of such fraudulent
misrepresentation, and (ii) contribution (together with any indemnification or
other obligations under this Agreement) by any seller of Shares shall be limited
in amount to the net amount of proceeds received by such seller from the sale of
such Shares.

         The obligations of the Company and Purchaser under this Section 7.3
shall survive completion of any offering of Registrable Securities in a
Registration Statement and the termination of this Agreement. No indemnifying
party, in the defense of any such claim or litigation, shall, except with the
consent of each indemnified party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation.

         7.4 TERMINATION OF CONDITIONS AND OBLIGATIONS. Notwithstanding anything
stated herein to the contrary, the conditions precedent imposed by Section 5 or
this Section 7 upon the transferability of the Shares shall cease and terminate
as to any particular number of the Shares, when such Shares shall have been
effectively registered under the Securities Act and sold or otherwise disposed
of in accordance with the intended method of disposition set forth in the
Registration Statement covering such or at such time as an opinion of counsel
satisfactory to the Company shall have been rendered to the effect that such
conditions are not necessary in order to comply with the Securities Act.

         The rights of the Purchaser hereunder, including the right to have the
Company register the Shares pursuant to this Agreement, shall be automatically
assigned by each Purchaser to any transferee of all or any portion of the
Shares, if: (a) the Purchaser agrees in writing with the transferee or assignee
to assign such rights, and a copy of such agreement is furnished to the Company
within a reasonable time after such assignment, (b) the Company is, within a

                                       9.
<PAGE>   13

reasonable time after such transfer or assignment, furnished with written notice
of (i) the name and address of such transferee or assignee, and (ii) the
securities with respect to which such registration rights are being transferred
or assigned, (c) following such transfer or assignment, the further disposition
of such securities by the transferee or assignee is restricted under the
Securities Act or applicable state securities laws, (d) at or before the time
the Company receives the written notice contemplated by clause (ii) of this
sentence, the transferee or assignee agrees in writing for the benefit of the
Company to be bound by all of the provisions contained herein, and (e) such
transfer shall have been made in accordance with the applicable requirements of
this Agreement, including without limitation the provisions of Section 5.4
herein.

         7.5 LEGENDS. Each certificate representing Shares shall (unless
otherwise permitted by the provisions of the Agreement) be stamped or otherwise
imprinted with a legend substantially similar to the following (in addition to
any legend required under applicable state securities laws or as provided
elsewhere in this Agreement):

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED,
         SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
         REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL OR BASED ON
         OTHER WRITTEN EVIDENCE IN THE FORM AND SUBSTANCE SATISFACTORY TO THE
         ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
         HYPOTHECATION IS IN COMPLIANCE THEREWITH.

8.       BROKER'S FEE. Each of the parties hereto hereby represents that on the
basis of any actions and agreements by it, there are no brokers or finders
entitled to compensation in connection with the sale of Shares to the Purchaser.

9.       NOTICES. All notices, requests, consents and other communications
hereunder shall be in writing, shall be sent by facsimile or mailed by first
class registered or certified airmail, or nationally recognized overnight
express courier postage prepaid, and shall be deemed given when so sent by
facsimile or mailed and shall be delivered as follows:

                  (a)      if to the Company, to:

                           Amylin Pharmaceuticals, Inc.
                           9373 Towne Centre Drive, Suite 250
                           San Diego, CA 92121
                           Attention:  Chief Executive Officer

                                      10.
<PAGE>   14

                           with a copy so mailed to:

                           Cooley Godward LLP
                           4365 Executive Drive, Suite 1100
                           San Diego, California 92121
                           Attention:  Thomas A. Coll, Esq.

or to such other person at such other place as the Company shall designate to
the Purchaser in writing; and

             (b) if to the Purchaser, at its address as set forth on the
signature page of this Agreement, or at such other address or addresses as may
have been furnished to the Company in writing.

10.      CHANGES. Neither this Agreement nor any provision hereof may be
changed, waived, discharged, terminated, modified or amended except pursuant to
an instrument in writing signed by the Company and the Purchaser.

11.      HEADINGS. The headings of the various sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be
part of this Agreement.

12.      SEVERABILITY. In case any provision contained in this Agreement should
be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby.

13.      GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California as applied to contracts
entered into and performed entirely in California by California residents,
without regard to conflicts of law principles.

14.      COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one instrument.

15.      SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided herein,
this Agreement and the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of
each of the parties hereto.

16.      FURTHER ACTIONS. Each party shall do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other
party may reasonably request in transactions of this nature in order to carry
out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

17.      ENTIRE AGREEMENT. This Agreement and other documents delivered pursuant
hereto, including the exhibits, constitute the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof.

                                      11.
<PAGE>   15

18.      PAYMENT OF FEES AND EXPENSES. Except as expressly set forth herein,
each of the Company and the Purchaser shall bear its own expenses and legal fees
incurred on its behalf with respect to this Agreement and the transactions
contemplated hereby.

19.      CONFIDENTIAL DISCLOSURE AGREEMENT. Notwithstanding any provision of
this Agreement to the contrary, any confidential disclosure agreement previously
executed by the Company and the Purchaser in connection with the transactions
contemplated by this Agreement shall remain in full force and effect in
accordance with its terms following the execution of this Agreement and the
consummation of the transactions contemplated hereby.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      12.
<PAGE>   16

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

AMYLIN PHARMACEUTICALS, INC.

By:
   --------------------------------
   Nancy K. Dahl, Esq.
   Vice President and
   General Counsel

PURCHASER

By:                              Number of Shares:
   ----------------------------                   --------------------------

Name:
     --------------------------
Title:
      -------------------------

Notices to be sent to:

-------------------------------

-------------------------------

-------------------------------

LIST OF ATTACHMENTS:

EXHIBIT A  -      STOCK CERTIFICATE QUESTIONNAIRE
EXHIBIT B  -      PURCHASER'S CERTIFICATE

                                      13.
<PAGE>   17

                                    EXHIBIT A

                          AMYLIN PHARMACEUTICALS, INC.

                         STOCK CERTIFICATE QUESTIONNAIRE

         Pursuant to Section 3 of the Stock Purchase Agreement, please provide
us with the following information:

1.   The exact name that your Shares are to be registered  ____________________
     in (this is the name that will appear on your stock
     certificate(s)). You may use a nominee name
     if appropriate:

2.   The relationship between the Purchaser of the Shares  ____________________
     and the Registered Holder listed in response to
     item 1 above:

3.   The mailing address of the Registered Holder listed   ____________________
     in response to item 1 above:

4.   The Social Security Number or Tax Identification      ____________________
     Number of the Registered Holder listed in the
     response to item 1 above:

<PAGE>   18

                                    EXHIBIT B

Attention:

                   PURCHASER'S CERTIFICATE OF SUBSEQUENT SALE

         The undersigned, an officer of, or other person duly authorized by
________________________________ hereby certificates that he/she [said
institution] is the Purchaser of the shares evidenced by the attached
certificate, and as such, sold such shares on ____________________________ in
accordance with registration statement number
__________________________________________________ and the requirement of
delivering a current prospectus and current annual and quarterly reports (Forms
10-K and 10-Q) by the Company has been complied with in connection with such
sale.

Print or Type:

Name of Purchaser (Individual or Institution):_________________________________

Name of Individual representing Purchaser
(if an Institution)                           _________________________________

Title of Individual representing Purchaser
(if an Institution)                           _________________________________

Signature by:

Individual Purchaser or Individual
Representing Purchaser:                       _________________________________

<PAGE>   19

                             SCHEDULE OF PURCHASERS

<TABLE>
<CAPTION>
   ---------------------------------------------------------------------------
                          PURCHASER                           SHARES PURCHASED
   ---------------------------------------------------------------------------
   <S>                                                              <C>
   Allen Anderson                                                   2,400,000
   ---------------------------------------------------------------------------
   Domain Partners IV, L.P.                                           195,320
   ---------------------------------------------------------------------------
   DP IV Associates, L.P.                                               4,680
   ---------------------------------------------------------------------------
   Donald H. Rumsfeld                                                  20,000
   ---------------------------------------------------------------------------
   Rumsfeld Family Trust                                               20,000
   ---------------------------------------------------------------------------
   VMN Associates                                                      20,000
   ---------------------------------------------------------------------------
   Kingsbury Capital Partners, L.P. II                                 70,000
   ---------------------------------------------------------------------------
   Kingsbury Capital Partners, L.P. III                               110,000
   ---------------------------------------------------------------------------
   Timothy J. and Cynthia K. Wollaeger Trust                           20,000
   ---------------------------------------------------------------------------
   The Greene Children's Trust                                         30,000
   ---------------------------------------------------------------------------
   The Greene Family Trust                                             50,000
   ---------------------------------------------------------------------------
   Judith E. and Joseph C. Cook, Jr.                                   30,000
   ---------------------------------------------------------------------------
   Farview Management Co., L.P.                                        30,000
   ---------------------------------------------------------------------------
   Deerfield Partners L.P.                                            492,000
   ---------------------------------------------------------------------------
   Deerfield International Limited                                    108,000
   ---------------------------------------------------------------------------
   Jeffrey R. Swarz                                                     5,000
   ---------------------------------------------------------------------------
   Terry C. Vance and Anne C. Vance as Joint Tenants in                15,000
   Common with Rights of Survivorship
   ---------------------------------------------------------------------------
   Ronald M. Nordmann                                                  20,000
   ---------------------------------------------------------------------------
   Peter Moses Hecht                                                   20,000
   ---------------------------------------------------------------------------
   Ginger L. Graham                                                    40,000
   ---------------------------------------------------------------------------
   TOTAL SHARES PURCHASED                                           3,700,000
   ---------------------------------------------------------------------------
</TABLE>

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