Document:

1996 Non-Officer Stock Option Plan

 
Exhibit 10.59

 
SCIOS INC. 
 
1996 NON-OFFICER STOCK OPTION PLAN 
 
Adopted November 11, 1996 
Amended February 3, 1997 
Amended February 9, 1998 
Amended February 8, 1999 
Amended August 9, 1999 
Amended February 5, 2001 
Amended May 7, 2001 
Amended November 5, 2001 
Amended May 7, 2002 
 
1.    PURPOSES. 
 
(a)  The purpose of the Plan is to provide a means by which selected Employees of and Consultants to the Company, and its Affiliates, may be given an opportunity to benefit from
increases in value of the stock of the Company through the granting of (i) Nonstatutory Stock Options, (ii) stock bonuses, and (iii) rights to purchase restricted stock, all as defined below. 
 
(b)  The Company, by means
of the Plan, seeks to retain the services of persons (other than Directors and Employees serving as Officers of the Company or its Affiliates) who are now Employees of or Consultants to the Company or its Affiliates, to secure and retain the
services of new Employees and Consultants, and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 
 
(c)  The Company intends that the Stock Awards issued under the Plan shall,
in the discretion of the Board or any Committee to which responsibility for administration of the Plan has been delegated pursuant to subsection 3(c), be either (i) Nonstatutory Stock Options granted pursuant to Section 6 hereof, or (ii) stock
bonuses or rights to purchase restricted stock granted pursuant to Section 7 hereof.  
 
2.    DEFINITIONS. 
 
(a)  “Affiliate” means any parent corporation or subsidiary corporation, whether
now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 
 
(b)  “Board” means the Board of Directors of the Company. 
 
(c)  “Code” means the Internal Revenue Code of 1986, as amended. 

 
(d)  “Committee” means a Committee appointed by the Board in accordance with subsection 3(c) of the Plan. 
 
(e)  “Company” means Scios Inc., a Delaware
corporation. 
 
(f)  “Consultant” means any person, including an advisor, engaged by the Company or an Affiliate to render consulting services and who is compensated for such services, provided that the term
“Consultant” shall not include Directors who are paid only a director’s fee by the Company or who are not compensated by the Company for their services as Directors. 
 
(g)  “Continuous Status as an Employee or
Consultant” means that the service of an individual to the Company, whether as an Employee or Consultant, is not interrupted or terminated. The Board, in its sole discretion, may determine whether Continuous Status as an Employee or
Consultant shall be considered interrupted in the case of: (i) any leave of absence approved by the Board, including sick leave, military leave, or any other personal leave; or (ii) transfers between locations of the Company or between the Company,
Affiliates or their successors. 
 
(h)  “Employee” means any person, including Officers, employed by the Company or any Affiliate of the Company. 
 
(i)  “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
 
(j)  “Fair Market Value” means the value of the common stock of the Company as determined in good faith by the Board. 
 
(k)  “Nonstatutory Stock Option” means an Option not
intended to qualify as an incentive stock option pursuant to Section 422 of the Code and the regulations promulgated thereunder. 
 
(l)  “Officer” means a person who is an officer of the Company within the meaning
of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 
(m)  “Option” means a stock option granted pursuant to the Plan.

 
(n)  “Option Agreement” means a written agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject
to the terms and conditions of the Plan. 
 
(o)  “Optionee” means a person who holds an outstanding Option. 
 
(p)  “Plan” means this 1996 Non-Officer Stock Option Plan. 

 
(q)  “Stock Award” means any right granted under the Plan, including any Option, any stock bonus and any right to purchase restricted stock. 
 
(r)  “Stock Award
Agreement” means a written agreement between the Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of
the Plan. 
 
3.    ADMINISTRATION. 
 
(a)  The Plan shall be administered by the Board unless and until the Board delegates administration to a Committee, as provided in subsection 3(c). 
 
(b)  The Board shall have
the power, subject to, and within the limitations of, the express provisions of the Plan: 
 
(1)  To determine from time to time which of the persons eligible under the Plan shall be granted Stock
Awards; when and how each Stock Award shall be granted; whether a Stock Award will be a Nonstatutory Stock Option, a stock bonus, a right to purchase restricted stock, or a combination of the foregoing; the provisions of each Stock Award granted
(which need not be identical), including the time or times when a person shall be permitted to receive stock pursuant to a Stock Award; and the number of shares with respect to which a Stock Award shall be granted to each such person.

 
(2)  To
construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the
Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 
 
(3)  To amend the Plan or a Stock Award as provided in Section 12. 
 
(4)  Generally, to exercise
such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company which are not in conflict with the provisions of the Plan. 
 
(c)  The Board may delegate
administration of the Plan to a committee composed of one or more members of the Board (the “Committee”). If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the
powers theretofore possessed by the Board (and references in this Plan to the Board shall thereafter be to the Committee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time
by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. 

 
4.    SHARES SUBJECT TO THE PLAN. 
 
(a)  Subject to the provisions of Section 11 relating to adjustments upon changes in stock, the stock
that may be issued pursuant to Stock Awards shall not exceed in the aggregate eight million seven hundred ninety five thousand (8,795,000) shares of the Company’s common stock. If any Stock Award shall for any reason expire or otherwise
terminate, in whole or in part, without having been exercised in full, the stock not acquired under such Stock Award shall revert to and again become available for issuance under the Plan. 
 
(b)  The stock subject to
the Plan may be unissued shares or reacquired shares, bought on the market or otherwise. 
 
5.    ELIGIBILITY. 
 
(a)  Stock Awards may be granted only to Employees or Consultants who (i) are not Officers and (ii) are
not then subject to Section 16 of the Exchange Act. 
 
6.    OPTION PROVISIONS. 
 
Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The
provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 
 
(a)  Term.    No Option shall be exercisable after the expiration of ten (10) years from the date it was granted. 
 
(b)  Price.    The exercise price of each
Nonstatutory Stock Option shall be not less than the Fair Market Value of the stock subject to the Option on the date the Option is granted. 
 
(c)  Consideration.    The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised, or (ii) at the discretion of the Board or the Committee, at the time of the grant of the Option, (A) by
delivery to the Company of other common stock of the Company, (B) according to a deferred payment arrangement, except that payment of the common stock’s “par value” (as defined in the Delaware General Corporation Law) shall not be
made by deferred payment or other arrangement, (which may include, without limiting the generality of the foregoing, the use of other common stock of the Company) with the person to whom the Option is granted or to whom the Option is transferred
pursuant to subsection 6(d), or (C) in any other form of legal consideration that may be acceptable to the Board. 
 
In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be charged at
the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 

 
(d)  Transferability.    An Option shall not be transferable except by will or by the laws of descent and distribution (and shall be exercisable during the lifetime of the person to whom
the Option is granted only by such person) unless the applicable Option Agreement expressly provides for other transferability. Notwithstanding the foregoing, the person to whom the Option is granted may, by delivering written notice to the Company,
in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionee, shall thereafter be entitled to exercise the Option. 
 
(e)  Vesting.    The total number of shares of
stock subject to an Option may, but need not, be allotted in periodic installments (which may, but need not, be equal). The Option Agreement may provide that from time to time during each of such installment periods, the Option may become
exercisable (“vest”) with respect to some or all of the shares allotted to that period, and may be exercised with respect to some or all of the shares allotted to such period and/or any prior period as to which the Option became vested but
was not fully exercised. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The provisions of this
subsection 6(e) are subject to any Option provisions governing the minimum number of shares as to which an Option may be exercised. 
 
(f)  Termination of Employment or Relationship as a Consultant.    In the
event an Optionee’s Continuous Status as an Employee or Consultant terminates (other than upon the Optionee’s death or disability), the Optionee may exercise his or her Option (to the extent that the Optionee was entitled to exercise it as
of the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) months after the termination of the Optionee’s Continuous Status as an Employee or Consultant (or such longer or shorter period
specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, at the date of termination, the Optionee is not entitled to exercise his or her entire Option, the shares covered by the
unexercisable portion of the Option shall revert to and again become available for issuance under the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified in the Option Agreement, the Option shall
terminate, and the shares covered by such Option shall revert to and again become available for issuance under the Plan. 
 
An Optionee’s Option Agreement may also provide that if the exercise of the Option following the termination of the
Optionee’s Continuous Status as an Employee or Consultant (other than upon the Optionee’s death or disability) would result in liability under Section 16(b) of the Exchange Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in the Option Agreement, or (ii) the tenth (10th) day after the last date on which such exercise would result in such liability under Section 16(b) of the Exchange Act. Finally, an Optionee’s
Option Agreement may also provide that if the exercise of the Option following the termination of the Optionee’s Continuous Status as an Employee or Consultant (other than upon the Optionee’s death or disability) would be prohibited at any
time solely because the issuance of shares would violate the registration requirements under the Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in the first paragraph of this subsection
6(f), or (ii) the expiration of a period of thirty (30) days after the termination of the Optionee’s Continuous Status as an Employee or Consultant during which the exercise of the Option would not be in violation of such registration
requirements. 

 
(g)  Disability of Optionee.    In the event an Optionee’s Continuous Status as an Employee or Consultant terminates as a result of the Optionee’s disability, the Optionee may
exercise his or her Option (to the extent that the Optionee was entitled to exercise it as of the date of termination), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such
longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, at the date of termination, the Optionee is not entitled to exercise his or her entire Option,
the shares covered by the unexercisable portion of the Option shall revert to and again become available for issuance under the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the
Option shall terminate, and the shares covered by such Option shall revert to and again become available for issuance under the Plan. 
 
(h)  Death of Optionee.    In the event of the death of an Optionee during, or
within a period specified in the Option Agreement after the termination of, the Optionee’s Continuous Status as an Employee or Consultant, the Option may be exercised (to the extent the Optionee was entitled to exercise the Option as of the
date of death) by the Optionee’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance, but only within the period ending on the earlier of (i) the date eighteen (18) months following the date of death (or
such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of such Option as set forth in the Option Agreement. If, at the time of death, the Optionee was not entitled to exercise his or her entire Option,
the shares covered by the unexercisable portion of the Option shall revert to and again become available for issuance under the Plan. If, after death, the Option is not exercised within the time specified herein, the Option shall terminate, and the
shares covered by such Option shall revert to and again become available for issuance under the Plan. 
 
7.    TERMS OF STOCK BONUSES AND PURCHASES OF RESTRICTED
STOCK. 
 
Each
stock bonus or restricted stock purchase agreement shall be in such form and shall contain such terms and conditions as the Board or the Committee shall deem appropriate. The terms and conditions of stock bonus or restricted stock purchase
agreements may change from time to time, and the terms and conditions of separate agreements need not be identical, but each stock bonus or restricted stock purchase agreement shall include (through incorporation of provisions hereof by reference in
the agreement or otherwise) the substance of each of the following provisions as appropriate: 
 
(a)  Purchase Price.    The purchase price under each restricted stock
purchase agreement shall be such amount as the Board or Committee shall determine and designate in such agreement, but in no event shall the purchase price be less than the stock’s Fair Market Value on the date such award is made.
Notwithstanding the foregoing, the Board or the Committee may determine that eligible participants in the Plan may be awarded stock pursuant to a stock bonus agreement in consideration for past services actually rendered to the Company or for its
benefit. 

 
(b)  Transferability.    No rights under a stock bonus or restricted stock purchase agreement shall be transferable except by will or the laws of descent and distribution, unless the
applicable Stock Award Agreement expressly provides for other transferability. 
 
(c)  Consideration.    The purchase price of stock acquired pursuant to a
stock purchase agreement shall be paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board or the Committee, according to a deferred payment or other arrangement, except that payment of the common stock’s “par
value” (as defined in the Delaware General Corporation Law) shall not be made by deferred payment or other arrangement, (which may include, without limiting the generality of the foregoing, the use of other common stock of the Company) with the
person to whom the stock is sold; or (iii) in any other form of legal consideration that may be acceptable to the Board or the Committee in its discretion. Notwithstanding the foregoing, the Board or the Committee to which administration of the Plan
has been delegated may award stock pursuant to a stock bonus agreement in consideration for past services actually rendered to the Company or for its benefit. In any event, the purchase price of stock acquired pursuant to either a stock purchase
agreement or a stock bonus agreement shall equal or exceed the par value of the stock acquired pursuant to such agreement. 
 
(d)  Vesting.    Shares of stock sold or awarded under the Plan may, but need
not, be subject to a repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board or the Committee. 
 
(e)  Termination of Employment or Relationship as a Consultant.    In the
event a Participant’s Continuous Status as an Employee or Consultant terminates, the Company may repurchase or otherwise reacquire, subject to the limitations described in subsection 7(d), any or all of the shares of stock held by that person
which have not vested as of the date of termination under the terms of the stock bonus or restricted stock purchase agreement between the Company and such person. 
 
8.    COVENANTS OF THE COMPANY.

 
(a)  During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of stock required to satisfy such Stock Awards. 
 
(b)  The Company shall seek
to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to issue and sell shares of stock upon exercise of the Stock Award; provided, however, that this undertaking shall not require
the Company to register under the Securities Act of 1933, as amended (the “Securities Act”) either the Plan, any Stock Award or any stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of stock under the Plan, the Company shall be relieved from any liability for failure to
issue and sell stock upon exercise of such Stock Awards unless and until such authority is obtained. 

 
9.    USE OF PROCEEDS FROM STOCK. 
 
Proceeds from the sale of stock pursuant to Stock Awards shall constitute general funds of the Company. 
 
10.    MISCELLANEOUS. 
 
(a)  The Board shall have
the power to accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest pursuant to subsection 6(e) or 7(d), notwithstanding the provisions in the Stock Award stating the
time at which it may first be exercised or the time during which it will vest. 
 
(b)  Neither an Employee or Consultant nor any person to whom a Stock Award is transferred under
subsection 6(d) or 7(b) shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares subject to such Stock Award unless and until such person has satisfied all requirements for exercise of the Stock Award
pursuant to its terms. 
 
(c)  Nothing in the Plan or any instrument executed or Stock Award granted pursuant thereto shall confer upon any Employee, Consultant or other holder of Stock Awards any right to continue in the employ of the
Company or any Affiliate (or to continue acting as a Consultant) or shall affect the right of the Company or any Affiliate to terminate the employment of any Employee with or without cause or to terminate the relationship of any Consultant subject
to the terms of that Consultant’s agreement with the Company or Affiliate to which such Consultant is providing services. 
 
(d)  Securities Law Compliance.    The Company may require any person to whom a Stock
Award is granted, or any person to whom a Stock Award is transferred pursuant to subsection 6(d) or 7(b), as a condition of exercising or acquiring stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to such
person’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters, and that he or she is
capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that such person is acquiring the stock subject
to the Stock Award for such person’s own account and not with any present intention of selling or otherwise distributing the stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (i)
the issuance of the shares upon the exercise or acquisition of stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (ii) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may require the holder of the Stock Award to provide such other representations,
written assurances or information which the Company shall determine is necessary, desirable or appropriate to comply with applicable securities and other laws as a condition of granting a Stock Award to such person or permitting the holder of the
Stock Award to exercise the Stock Award. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities
laws, including, but not limited to, legends restricting the transfer of the stock. 

 
(e)  Withholding.    To the extent provided by the terms of a Stock Award Agreement, the person to whom a Stock Award is granted may satisfy any federal, state or local tax withholding
obligation relating to the exercise or acquisition of stock under a Stock Award by any of the following means or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares from the shares of the
common stock otherwise issuable to the participant as a result of the exercise or acquisition of stock under the Stock Award; or (iii) delivering to the Company owned and unencumbered shares of the common stock of the Company.  
 
11.    ADJUSTMENTS UPON
CHANGES IN STOCK. 
 
(a)  If any change is made in the stock subject to the Plan, or subject to any Stock Award, without the receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving
the receipt of consideration by the Company), the Plan will be appropriately adjusted in the type(s) and the maximum number of securities subject to the Plan pursuant to subsection 4(a), and the outstanding Stock Awards will be appropriately
adjusted in the type(s) and number of securities and price per share of stock subject to such outstanding Stock Awards. Such adjustments shall be made by the Board or the Committee, the determination of which shall be final, binding and conclusive.
(The conversion of any convertible securities of the Company shall not be treated as a “transaction not involving the receipt of consideration by the Company.”) 
 
(b)  In the event of: (i) a dissolution or liquidation of the Company; (ii)
a merger or consolidation in which the Company is not the surviving corporation; (iii) a reverse merger in which the Company is the surviving corporation but the shares of the Company’s common stock outstanding immediately preceding the merger
are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise; or (iv) any other capital reorganization in which more than fifty percent (50%) of the shares of the Company entitled to vote are
exchanged, then, at the sole discretion of the Board and to the extent permitted by applicable law: (A) any surviving corporation shall assume any Stock Awards outstanding under the Plan or shall substitute similar Stock Awards for those outstanding
under the Plan, (B) such Stock Awards shall continue in full force and effect, or (C) any outstanding unexercised rights under any Stock Awards shall be terminated if not exercised prior to such event, provided, however, that with respect to Stock
Awards then held by persons performing services for the Company or an Affiliate, the time during which such Stock Awards become vested or may be exercised shall be accelerated prior to such termination. 
 
(c)  In the event a change
in control (as hereinafter defined) occurs at the Company and, within one (1) year of such change in control, an Optionee’s employment with the Company and its Affiliates is terminated other than for cause (as hereinafter defined) Options held
by such terminated Employee may be exercised in full following such termination without regard to the vesting limitations to which such Options are otherwise subject. For the purposes of the foregoing, a “change in control” shall have
occurred if (i) any person (as defined in Section 13 of 

 
the Exchange
Act) acquires shares, other than directly from the Company, and thereby becomes the owner of more than thirty percent (30%) of the Company’s outstanding shares (on a fully diluted basis) or (ii) the Company enters into a merger (other than one
in connection with a voluntary change of corporate domicile or similar reorganization or recapitalization transaction) in which the stockholders of the Company (determined immediately prior to the merger) do not own at least fifty percent (50%) of
the outstanding shares of the surviving entity after the merger. For purposes of the foregoing, a termination shall be deemed to have been made for “cause” in the event the Optionee’s employment is terminated for any of the following
reasons: (A) the Optionee’s continued failure to substantially perform his duties with the Company or its Affiliates, (B) the engaging by the Optionee in gross misconduct materially and demonstrably injurious to the Company, its Affiliates or
their Employees, or (C) illicit drug use or habitual alcohol use, or (D) the commission by the Optionee of any felony. 
 
12.    AMENDMENT OF THE PLAN AND STOCK
AWARDS. 
 
(a)  The Board at any time, and from time to time, may amend the Plan.  
 
(b)  The Board may, in its sole discretion, submit the Plan and/or any amendment to the Plan for
stockholder approval. 
 
(c)  It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide those eligible with the maximum benefits provided or to be provided under the
provisions of the Code and the regulations promulgated thereunder. 
 
(d)  Rights and obligations under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of
the person to whom the Stock Award was granted and (ii) such person consents in writing. 
 
(e)  The Board at any time, and from time to time, may amend the terms of any one or more Stock Award;
provided, however, that the rights and obligations under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the person to whom the Stock Award was granted and (ii) such person consents in
writing. 
 
13.    TERMINATION OR SUSPENSION OF THE PLAN. 
 
(a)  The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on November 10, 2006, which shall be within ten (10) years from the date the Plan is adopted by the Board. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is
terminated. 
 
(b)  Rights and obligations under any Stock Award granted while the Plan is in effect shall not be impaired by suspension or termination of the Plan, except with the written consent of the person to whom the Stock
Award was granted. 

 
14.    EFFECTIVE DATE OF PLAN. 
 
The Plan shall become effective on November 11, 1996.Letter Regarding Termination of Services

 
Exhibit 10.60

 
December 31, 2002 
 
VIA FEDERAL EXPRESS 
 

	 Tom Perkins
 General Counsel
 PharmaBio Development Inc.
 4709 Creekstone Drive
 Durham, NC 27703
	 	 Eric Green
 General Counsel
 Innovex America Holding Company
 10 Waterview Blvd.
 Parsipanny, NJ 07054

 

	 	RE:	 	Termination of Services under the Amended and Restated Alliance Agreement—Natrecor 

 
Dear Tom and Eric: 
 
I am writing to confirm the agreement of all of the parties to terminate the
Services provided by ISS under the Amended and Restated Alliance Agreement—Natrecor, dated as of January 10, 2001 and amended and restated as of November 1, 2001 (the “Agreement”), among Scios Inc. (“Scios”), Innovex LP
(“Innovex”), Innovex Support Services Limited Partnership (“ISS”), and PharmaBio Development, Inc. (“PharmaBio”). Termination of such Services shall be effective midnight, January 31, 2003 (the “Service Termination
Effective Date”). In connection with such termination of services, the parties agree to the terms set forth below. 
 
Effective midnight, December 31, 2002, (i) Innovex shall only be responsible to provide the services of one Field Coordinator until January 31, 2003, who
shall perform such reasonable and necessary duties to effect an orderly wind-down of Services; and (ii) ISS shall have no further obligation to provide Services. Scios may hire the Sales Representatives directly as of January 1, 2003. 
 
On January 1, 2003 (or as soon thereafter as reasonably practicable), Scios
shall pay to Innovex the following amounts: (a) $2,214,800.00 for management fees that would have been earned for the period of January 1, 2003 through May 31, 2003; (b) $165,000.00 for the conversion of the Sales Representatives, listed on
Exhibit attached hereto, from ISS to Scios; and (c) $14,784.00 for the Services of one Innovex Field Coordinator for the month of January 2003. 
 
On January 1, 2003, Innovex shall pay to Scios the amount of $175,000.00 for anticipated Sales Representative health care costs previously paid to Innovex
for the period ended December 31, 2002, for which Scios will be billed directly by the health care providers. On March 31, 2003 Scios will deliver copies of actual invoices to Innovex for such health care costs, and the parties agrees to reconcile
the payment based upon the actual invoices. 
 
Promptly upon
receipt of invoice from Innovex, Scios shall pay to Innovex (a) travel and expense report amounts paid to Sales Representatives by Innovex through the GELCO system for 

 
the months through December
2002 and (b) the amount necessary to reconcile actual salary paid to Sale Representatives by Innovex against the standard rate under the Agreement through December 2002. 
 
Nothing in this letter agreement of termination of Services is intended to affect or modify PharmaBio’s scheduled
funding payments to Scios, or Scios’ royalty payment obligations to PharmaBio as set forth in the Agreement. As of January 1, 2003, all unexercisable Warrant Shares under the Warrant Agreement, effective as of January 10, 2001, between Scios
and PharmaBio, shall accelerate and be exercisable on the Service Termination Effective Date and the Warrant and Warrant Shares shall be freely assignable by PharmaBio. Scios and PharmaBio agree to amend the Warrant as soon as practicable following
the execution of this letter to effect the foregoing. 
 
Except as
set forth above, all Services provided by Innovex and ISS to Scios shall cease on the Service Termination Effective Date, and Scios shall have no further payment obligations to Innovex and ISS. Effective as of Service Termination Effective Date,
Scios shall be responsible for all Services previously provided by ISS, including but not limited to payroll activities. Except as set forth herein, the terms and conditions of the Agreement related to the Services, that are necessary to fulfill the
intent and purpose thereof, shall remain in full force and effect. 
 
Please countersign this letter below to confirm the acceptance of the foregoing. 
 
Sincerely, 
 
/s/    MATT R. HOOPER 
Matt R. Hooper 
Vice President and General Counsel 
 

	 INNOVEX LP
 by:   Innovex America Holding
          Company, its General Partner
	 	 	 	 INNOVEX SUPPORT SERVICES
 LIMITED PARTNERSHIP
 by:   Innovex America Holding
          Company its General Partner

	
	 By:
	 	 /s/    KENNETH P. BUDSEA

	 	 	 	 By:
	 	 /s/    KENNETH P. BUDSEA

	
	 Name:
	 	 Kenneth P. Budsea

	 	 	 	 Name:
	 	 Kenneth P. Budsea

	
	 Title:
	 	 Executive Director, Finance

	 	 	 	 Title:
	 	 Executive Director, Finance

	
	 PHARMABIO DEVELOPMENT, INC.
	 	 	 	 
	
	 By:
	 	 /s/    TOM PERKINS

	 	 	 	 	 	 
	
	 Name:
	 	 Tom Perkins

	 	 	 	 	 	 
	
	 Title:
	 	 SVP, Corporate Development

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]