Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.3  

 
 

2ND SWING, INC.    
    
    STOCK OPTION PLAN
  FOR NONEMPLOYEE DIRECTORS    
  

        1.    Purpose.    This Stock Option Plan (the "Plan") for 2nd Swing, Inc., a Minnesota corporation (the
"Company"), is intended to advance the interests of the Company by providing members of the Board of Directors, who are responsible for the direction of the Company, with additional incentive to
promote the success of the business, to increase their proprietary interest in the success of the Company, and to attract, reward and retain them as directors of the Company. These goals will be
effectuated through the granting of nonqualified options to purchase Common Stock of the Company. 

        2.    Definitions.    In addition to definitions that may be contained elsewhere herein, for purposes of this Plan,
the following terms shall be defined as set forth below: 

        (a)  "Option
Agreement" means any written agreement, contract, or other instrument or document evidencing any Option granted hereunder and signed by both the Company and the
Participant. 

        (b)  "Board"
means the Board of Directors of the Company. 

        (c)  "Code"
means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. 

        (d)  "Committee"
means the committee referred to in Section 3 of the Plan, or if no committee is appointed, the Board. 

        (e)  "Disability"
means disability as determined under procedures established by the Committee for purposes of this Plan or as defined in Section 22(e)(3) of the Code. 

        (f)    "Exchange
Act" means the Securities Exchange Act of 1934, as amended from time to time. 

        (g)  "Fair
Market Value" means as of any given date, unless otherwise determined by the Committee in good faith, the closing price of the Stock as reported on The Nasdaq
Stock Market or, if the Stock is then traded on a national or regional securities exchange, the closing price of the Stock on such exchange. 

        (h)  "Participant"
means any person entitled to participate in this Plan as set forth in Section 4 hereof. 

        (i)    "Stock"
means the Common Stock, $.01 par value per share, of the Company. 

        (j)    "Stock
Option" or "Option" means any option to purchase shares of Stock granted pursuant to Section 5 below. 

        3.    Administration.    The Plan shall be administered by a committee appointed by the Board or, if no committee is
appointed, by the Board. Grants of Common Stock under the Plan shall be made automatically as provided in Section 5. However, the Committee shall have full authority to interpret the Plan, to
promulgate such rules and regulations with respect to the Plan as it deems desirable and to make all other determinations necessary or appropriate for the administration of the Plan, and such
determinations shall be final and binding upon all persons having an interest in the Plan. 

        4.    Eligibility.    Options will be granted only to persons who at the time of the grant are directors of the
Company and who are not otherwise employees of the Company or any affiliate of the Company ("Nonemployee Director" or "Nonemployee Directors"). 

 

        5.    Options.    

        (a)    Initial Grant.    On the first business day following the date a Nonemployee Director is first appointed or
elected to serve as a Nonemployee Director, the Nonemployee Director shall be granted an Option to purchase 7,500 shares of stock. 

        (b)    Annual Grant.    Each year, on the first business day following the annual meeting of the Company's
shareholders (but in no event later than June 1 or the first business day thereafter), each person serving on such date as a Nonemployee Director of the Company shall be granted an Option to
purchase Five Thousand (5,000) shares of stock. 

        (c)    Terms of Option.    Except as otherwise may be provided herein, each Option (a) shall be subject to all
terms of the Plan, (b) shall be granted for a term of seven years, and (c) shall vest and become fully exercisable on the earlier of the date of next annual meeting of the shareholders
next following the date of grant or the date one year from the date of grant; provided, in each instance, that the Participant has continuously served as a Nonemployee Director of the Company during
such period or until the election of directors next following the date of grant, whichever shall first occur (and, if not, said Option shall be forfeited in its entirety). 

        (d)    Exercise Price.    The exercise price per share of Stock purchasable under an option shall be not less than
100% of the Fair Market Value of the Stock on the date of grant. 

        (e)    Method of Exercise.    Stock Options may be exercised in whole or in part any time during the term of the
Option. Payment of the exercise price shall be made by (i) cash or certified bank check, (ii) delivery of shares of Stock already owned by the Participant, or (iii) any
combination of the foregoing. For purposes of this paragraph, shares of Stock that are delivered in payment of the exercise price shall be valued at their Fair Market Value as of the date of the
exercise of the Option. The Company's obligation to deliver shares upon the exercise of Options shall be subject to applicable federal, state, and local tax withholding requirements. Unless otherwise
determined by the Committee, withholding obligations may be settled with Stock, including Stock received as part of the exercise giving rise to the withholding requirement. 

        (f)    Restrictions on Transfer of Option.    Each Option granted under this Plan shall be transferable only by will
or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act ("ERISA"), or the rules
thereunder. Except as permitted by the preceding sentence, no Option granted under the Plan or any of the rights and privileges thereby conferred shall be transferred, assigned, pledged, or
hypothecated in any way (whether by operation of law or otherwise), and no such option, right, or
privilege shall be subject to execution, attachment, or similar process. An Option may be exercised during the Participant's lifetime only by the Participant or his or her guardian or legal
representative. 

        6.    Shares of Stock Subject to the Plan.    There shall be reserved and available for issuance upon the exercise of
Options granted from time to time under the Plan an aggregate of 150,000 shares of the Stock. Such shares may consist, in whole or in part, of authorized but unissued shares of Stock or issued shares
that have been reacquired by the Company. If any shares subject to an Option are not issued because the Option is not exercised, such shares shall again be available for distribution in connection
with future Options. 

        In
the event of any merger, reorganization, consolidation, recapitalization, Stock dividend, Stock split, or other change in corporate structure affecting the Stock, such substitution or
adjustment shall be made in the aggregate number of shares reserved for issuance under the Plan and in the number and option price of shares subject to outstanding options granted under the Plan as
may be determined to be appropriate by the Board, in its sole discretion, provided that the number of shares subject to any Option shall always be a whole number. 

2

 

        7.    Death or Disability of Participant.    

        (a)    Termination by Death.    If a Participant's service to the Company terminates by reason of death, any Stock
Option held by such Participant will immediately become fully exercisable and may thereafter be exercised by the legal representative of the Participant's estate or by any person who acquired the
Option by will or the laws of descent and distribution for a period of one year from the date of such death or until the expiration of the stated term of such Stock Option, whichever period is the
shorter. 

        (b)    Termination by Reason of Disability.    If a Participant's service to the Company terminates by reason of
Disability, any Stock Option held by such Participant shall immediately become fully exercisable and may thereafter be exercised by the Participant until the expiration of the stated term of such
Stock Option; provided, however, that if the Participant dies prior to the expiration of the Option, any unexercised Stock Option held by such Participant shall thereafter be exercisable to the extent
to which it was exercisable at the time of death for a period of one year from the date of such death or until the expiration of the stated term of such Stock Option, whichever period is the shorter. 

        8.    Restrictions on Transfer of Stock.    Unless a registration statement under the Securities Act of 1933 is in
effect with respect to Stock to be purchased upon exercise of Options to be granted under the Plan, the Company may require that the Participant represent to and agree with the Company in writing that
he or she is acquiring such shares of Stock for the purpose of investment and with no present intention to transfer, sell, or otherwise dispose of such shares of Stock. Further, in the absence of such
registration, no shares of Stock acquired pursuant to exercise of an option may be transferred unless, in
the opinion of counsel to the Company, such transfer is in compliance with applicable securities laws, and each certificate representing any shares of Stock issued to a Participant hereunder shall
have endorsed thereon an appropriate legend referring to the restrictions against transfer. 

        9.    Amendment of the Plan.    The Board of Directors may suspend or terminate the Plan or any portion thereof at any
time, and the Board of Directors or the Committee may amend the Plan from time to time as may be deemed to be in the best interests of the Company; provided, however, that no such amendment,
alteration or discontinuation shall be made (a) that would impair the rights of a Nonemployee Director with respect to Options theretofore awarded, without such person's consent, or
(b) without the approval of the stockholders (i) if such approval is necessary to comply with any legal, tax, or regulatory requirement, including any approval requirement that is a
prerequisite for exemptive relief from Section 16(b) of the Exchange Act; or (ii) to increase the maximum number of shares of Stock subject to this Plan, increase the maximum number of
shares issuable to any Nonemployee Director under this Plan, or change the definition of persons eligible to receive Options under this Plan; and, provided further, that no amendment shall be made
that will change the terms of the Options to be granted hereunder with regard to amount, exercise price, or date of grant, more than once every six months other than to comport to changes in the Code,
ERISA, or the rules thereunder. 

        10.    Applicability of Plan to Outstanding Stock Options.    This Plan shall not affect the terms and conditions of
any stock options currently outstanding to any director of the Company, nor shall it affect any of the rights of any director to whom such a stock option was granted. 

        11.    Effective Date of Plan.    This Plan shall become effective upon the date of its adoption by the Board of
Directors of the Company, subject to approval of the shareholders of the Company within twelve months of the date of adoption. 

        12.    Change in Control Provisions.    

        (a)    Impact of Event.    In the event of a "Change in Control" as defined in Section 12(b), all Options
granted hereunder shall become fully exercisable and vested. 

3

 

        (b)    Definition of"Change in Control."    For purposes of Section 12(a), a "Change in Control" means the
happening of any of the following: 

        (i)    Any
"person" as defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d) and 14(d) thereof, including a "group" as defined in
Section 13(d) of the Exchange Act, but excluding the Company or any subsidiary or parent or any employee benefit plan sponsored or maintained by the
Company or any subsidiary or parent (including any trustee of such plan acting as trustee), directly or indirectly, becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act, as amended from time to time), of securities of the Company representing 20 percent or more of the combined voting power of the Company's outstanding securities;  provided, however,
 that the current ownership by David R. Pomije of 20 percent or more of the combined voting power of the Company's outstanding
securities shall not be deemed a Change in Control; provided further, however, that if Mr. Pomije's ownership is at any time less than
20 percent of the combined voting power of the Company's then outstanding securities, an increase of his ownership to more than 20 percent of the combined voting power of the Company's
then outstanding securities shall be deemed a Change in Control; 

        (ii)  During
any period of 24 consecutive months during the existence of the Plan, the individuals who, at the beginning of such period, constitute the Board (the "Incumbent
Directors") cease for any reason other than death to constitute at least a majority thereof; provided, however, that a director who was not a director
at the beginning of such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an Incumbent Director) if such director was elected by, or on the
recommendation of, or with the approval of, at least 60% of the directors who then qualified as Incumbent Directors either actually (because they were directors at the beginning of such
24-month period) or by prior operation of this Section 12(b)(ii); or 

        (iii)  The
approval by the shareholders of an acquisition of the Company by an entity other than the Company or a subsidiary or parent through purchase of assets, or by
merger, or otherwise. 

        13.    Nonexclusivity of the Plan.    The adoption of this Plan shall not be construed as limiting the power of the
Board of Directors to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific cases. 

        14.    Miscellaneous.    

        (a)    Governing Law.    This Plan shall be governed by and construed in accordance with the laws of the State of
Minnesota, and all terms shall be interpreted and construed so that there shall not be committed any violation of applicable state or federal securities laws. 

        (b)    No Additional Rights of Service.    Participation in or eligibility for participation in the Plan does not
grant any person any right of service as a director, and the Company retains the right to terminate service of any director pursuant to Company's Articles, Bylaws, and applicable law. 

4

QuickLinks

2ND SWING, INC. STOCK OPTION PLAN FOR NONEMPLOYEE DIRECTORSQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.38    
  

 
 

INDEPENDENT CONSULTANT AGREEMENT    
  

        THIS INDEPENDENT CONSULTANT AGREEMENT (this "Agreement") is entered into by and between Versicor Inc., a
Delaware corporation (the "Company"), and Constantino Ambrosio (the "Independent Consultant"), as of this 30th day of July, 2002 (the "Execution Date"). 

        THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions: 

        A.    The Board of Directors of the Company (the "Board") has determined that it is in the best interests of the Company and its
stockholders to assure that the Company obtains the services of the Independent Consultant and, therefore, the Board of the Company desires to provide the Independent Consultant with the benefits set
forth in this Agreement. 

        B.    The Independent Consultant represents to the Company that the Independent Consultant is currently providing services to
Biosearch Italia S.p.A., an Italian joint stock company ("Biosearch"), and that subject to the closing of the merger of Biosearch with and into the Company (the "Merger") pursuant to that certain
Agreement and Plan of Merger dated as of July 30, 2002 (the "Merger Agreement"), by and between the Company and Biosearch, the Independent Consultant desires to render the services to the
Company contemplated under this Agreement. 

        C.    The Effective Time (as defined in the Merger Agreement) regarding the Merger shall be the "Effective Date" of this
Agreement. 

        NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto,
intending to be legally bound, do hereby agree as follows: 

        1.    Service Period.    

        1.1  On
the Effective Date, the Company hereby agrees to engage the services of the Independent Consultant as an independent consultant to the Company serving as Chief of
Manufacturing (Managing Director), and the Independent Consultant hereby accepts such independent consulting relationship with the Company, subject to the terms and conditions of this Agreement, until
the termination of this Agreement. 

        1.2  This
Agreement is for an indefinite period of time. Either party may terminate this Agreement by giving to the other party not less than ten (10) days prior
written notice. 

        2.    Description of Services.    

        2.1  From
and after the Effective Date until the termination of this Agreement, the Independent Consultant shall provide certain services to the Company in connection with
the projects and according to plans to be agreed upon by the parties from time to time (the "Services"). In performing the Services, the Independent Consultant shall be independent with respect to the
criteria used to render the Services. The Company will specify the Services to be performed and the specific results to be achieved. 

        2.2  From
and after the Effective Date until the termination of this Agreement, the Independent Consultant agrees to devote a substantial portion of the Independent
Consultant's time, energy and ability to the performance of the Services for the Company; provided, however, nothing contained in this Agreement shall
prevent the Independent Consultant, upon receiving the prior written approval of the Board, from serving as a non-executive director or trustee of other corporations or businesses that are
not in competition with the business of the Company or in 

1

 

competition with any present or future affiliate of the Company, provided such service does not interfere with the Independent Consultant's performance of the Services contemplated hereunder. 

        3.    Payment.    

        3.1    Base Payment.    Beginning on the Effective Date, the Company shall pay to the Independent Consultant base
payment at the rate of 154,937 (EURO) per calendar year of performance of the Services (the "Base Payment"). Such Base Payment shall be earned monthly on a prorated basis and shall be payable in
periodic installments no less frequently than monthly in accordance with the Company's customary practices for independent consulting services, and shall be subject to taxation and social security
contributions. In this respect, the Company shall be responsible for payment of mandatory withholding payments for tax and social security purposes. The Company shall review the Independent
Consultant's Base Payment at least annually. As set forth more fully in Section 4 hereof, the Independent Consultant shall not be entitled to any benefits, coverages, or privileges, including,
without limitation, social security, unemployment, workers' compensation, medical or pension payments, or holiday/vacation pay or other such benefits made available to employees of the Company. 

        3.2    Incentive Premium.    The Independent Consultant shall receive an incentive premium of 310,000 (EURO) to be
paid as a lump sum at the approval of the manufacturing site by either the United States Food and Drug Administration or other appropriate authorities; provided, however, that the Company's obligation
to pay such incentive premium to the Independent Consultant shall be subject to the following conditions: (i) the Independent Consultant's continued provision of Services to the Company under
this Agreement on the date of the approval of the manufacturing site by either the United States Food and Drug Administration or other appropriate authorities (the "Approval Date"); and
(ii) the Independent Consultant shall not be in breach of this Agreement on the Approval Date. 

        3.3    New Stock Options.    Subject to the following conditions, the approval thereof by the Board and the closing of
the Merger (collectively, the "Stock Option Conditions"), the Company shall grant the Independent Consultant a stock option (the "New Option") to purchase up to 400,000 shares of the Company's common
stock (the "Common Stock") (such number of shares to be adjusted to reflect stock splits, reverse stock splits, stock dividends, and similar changes in capitalization of the Company after the
Effective Date): 

        3.3.1  The
per share exercise price for the shares of the Common Stock issuable upon exercise of the New Options so issued shall be determined by the Board of
Directors of the Company or a committee thereof as of the Effective Date, to be equal to the fair market value of the Company's common stock on The Nasdaq National Market on the Effective Date. For
the purposes of the New Option, "fair market value" shall mean the greater of (x) the closing price of shares of the Common Stock on The Nasdaq National Market on the Effective Date, and
(y) the average of the closing prices for a share of the Common Stock on The Nasdaq National Market for each trading day during the one-month period immediately preceding the
Effective Date. 

        3.3.2  The
New Option shall be granted under the Company's 2001 Stock Option Plan or such other plan as the Company may elect, in its sole discretion (the "2001
Plan"), and (i) shall be granted subject to the terms of the 2001 Plan, and (ii) shall be evidenced by and granted subject to the terms of a stock option agreement in substantially the
form attached hereto as Exhibit A ("Form of New Stock Option Agreement"). 

        3.3.3  The
Independent Consultant acknowledges having received a copy of the 2001 Plan and the Form of New Stock Option Agreement. 

2

 

        3.3.4  So
long as the Independent Contract provides Services to the Company under this Agreement, the New Option shall vest as follows: (i) 25% on the
one year anniversary of the vesting commencement date of the New Option, and (ii) thereafter, 75% at a monthly rate of 1/36th each month in arrears. The New Option shall be exercisable only to
the extent then vested and in accordance with the terms of the Form of New Stock Option Agreement. 

        3.4    Replacement Stock Options.    Subject to the Stock Option Conditions, the Company shall grant the Independent
Consultant a stock option (the "Replacement Option") to purchase up to 88,500 shares of Common Stock (such number of shares to be adjusted to reflect stock splits, reverse stock splits, stock
dividends, and similar changes in capitalization of the Company after the Effective Date): 

        3.4.1  The
per share exercise price for the shares of the Common Stock issuable upon exercise of the Replacement Options so issued shall be determined by the
Board of Directors of the Company or a committee thereof as of the Effective Date, to be equal to the fair market value of the Company's common stock on The Nasdaq National Market on the Effective
Date. For the purposes of the Replacement Option, "fair market value" shall mean the greater of (x) the closing price of shares of the Common Stock on The Nasdaq National Market on the
Effective Date, and (y) the average of the closing prices for a share of the Common Stock on The Nasdaq National Market for each trading day during the one-month period immediately
preceding the Effective Date. 

        3.4.2  The
Replacement Option shall be granted under the Company's 2002 Stock Option Plan or such other plan as the Company may elect, in its sole discretion
(the "2002 Plan"), and (i) shall be granted subject to the terms of the 2002 Plan, and (ii) shall be evidenced by and granted subject to the terms of a stock option agreement in
substantially the form attached hereto as Exhibit B ("Form of Replacement Stock Option Agreement"). 

        3.4.3  The
Independent Consultant acknowledges having received a copy of the 2002 Plan and the Form of Replacement Stock Option Agreement. 

        3.4.4  So
long as the Independent Contract provides Services to the Company under this Agreement, the Replacement Option shall vest as follows: (i) 25%
on the one year anniversary of the vesting commencement date of the Replacement Option, and (ii) thereafter, 75% at a monthly rate of 1/36th each month in arrears. The Replacement Option shall
be exercisable only to the extent then vested and in accordance with the terms of the Form of Replacement Stock Option Agreement. 

        3.4.5  In
consideration of the grant of the Replacement Option pursuant to this Section 3.4, the Independent Consultant hereby (a) consents to the
termination of the stock option regulation dated July 27, 2001 (the "Biosearch Stock Option Plan"), and the options to purchase shares of Biosearch Ordinary Shares issued to the Independent
Consultant thereunder pursuant to the minutes of the board of directors of Biosearch dated February 6, 2002 (the "Biosearch Stock Options"), (b) acknowledges and agrees that, as of the
Effective Date, the Independent Consultant shall have no further rights under the Biosearch Stock Option Plan or any Biosearch Stock Options, and (c) waives any and all rights with respect to
the Biosearch Stock Option Plan and all Biosearch Stock Options and any action for damages, repayment or otherwise in respect of Biosearch Stock Option Plan or any Biosearch Stock Options, such
waivers to be effective as of the Effective Date. 

        3.5    Expenses.    Any expenses incurred by the Independent Consultant in performing the Services shall be the sole
responsibility of the Independent Consultant. 

3

 

        4.    Relationship of the Parties.    

        4.1    Independent Consultant.    The Independent Consultant is an independent consultant and is not an agent or
employee of, and has no authority to bind the Company by contract or otherwise. The Independent Consultant shall perform the Services under the general direction of the Company, but the Independent
Consultant shall determine, in the Independent Consultant's sole discretion, the manner and means by which the Services are accomplished, subject to the requirement that the Independent Consultant
shall at all times comply with applicable law and the policies and procedures of the Company. Subject to the policies and procedures of the Company, the Company has no right or authority to control
the manner or means by which the Services are accomplished. 

        4.2    Employment Taxes and Benefits.    The Independent Consultant will report as self-employment income
all payments received by the Independent Consultant pursuant to this Agreement. The Independent Consultant shall indemnify the Company and hold it harmless from and against all claims, damages, losses
and expenses, including reasonable fees and expenses of attorneys and other professionals, relating to any obligation imposed by law on the Company to pay any withholding taxes, social security,
unemployment or disability insurance, or similar items in connection with the payments received by the Independent Consultant pursuant to this Agreement or any determination that the Independent
Consultant is an employee and not an independent consultant. The Independent Consultant shall not be entitled to receive any vacation or illness payments, or to participate in any plans, arrangements
or distributions by the Company pertaining to any bonus, stock option, profit sharing, insurance or similar benefits for the Company's employees, except as set forth in this Agreement. 

        5.    Confidential Information.    

        5.1  The
Independent Consultant shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Independent Consultant during the Independent Consultant's performance of Services
hereunder and which shall not be or become public knowledge (other than by acts by the Independent Consultant or the Independent Consultant's representatives in violation of this Agreement). After
termination of the Independent Consultant's performance of Services to the Company, the Independent Consultant shall not, without the prior written consent of the Company, or as may otherwise be
required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it. 

        5.2  The
Independent Consultant agrees that all lists, materials, books, files, reports, correspondence, records, and other documents ("Company Material") used, prepared, or
made available to the Independent Consultant, shall be and shall remain the property of the Company. Upon the termination of the Independent Consultant's performance of Services under this Agreement,
all Company Materials shall be returned immediately to the Company, and the Independent Consultant shall not make or retain any copies thereof. 

        6.    Non-Competition; Non-Solicitation; Injunctive
Relief.    

        6.1  The
Independent Consultant agrees that from and after the Effective Date until the termination of this Agreement, the Independent Consultant shall not undertake the
formation or creation of any business activity competitive with the business of the Company, or engage in any business or trade or have any interest in any person, firm, corporation or entity (whether
as an employee, independent consultant, officer, director, shareholder, consultant, advisor or otherwise) that engages in any business or trade in Italy which business or trade is competitive with the
Company's business. The Independent Consultant further agrees that, from and after the Effective 

4

 

Date until the termination of this Agreement, the Independent Consultant shall not, either directly or indirectly, solicit any of the Company's employees, officers, directors, representatives,
clients, partners, independent consultants or collaborators (including, without limitation, any customer, supplier, licensee, licensor or other business relation of the Company) to work for or with
the Independent Consultant in a business competitive to the Company or to work for a competitor of the Company. 

        6.2  Subject
to Section 2.2 of this Agreement, from and after the termination of this Agreement and for a period of twelve months thereafter (the "Expiration Date"),
the Independent Consultant hereby agrees that the Independent Consultant shall not, without the Board's prior written consent, directly or indirectly undertake the formation or creation of any
business activity competitive with the business of the Company, or engage in any business or trade, or have any interest in any person, firm, corporation or entity (whether as an employee, independent
consultant, officer, director, shareholder, consultant,
advisor or otherwise) that engages in any business or trade in Italy which business or trade is competitive with the Company's business; provided that,
for purposes of this Section 6.2, the parties hereto hereby agree that a business solely engaged in the manufacture of biopharmaceutical products and which is not engaged in the discovery or
development of antibiotic or antifungal biopharmaceutical products shall not be deemed to be competitive with the business of the Company. The Independent Consultant further agrees that, from and
after the termination of this Agreement through and including the Expiration Date, the Independent Consultant shall not either directly or indirectly, solicit any of the Company's employees, officers,
directors, representatives, clients, partners, independent consultants or collaborators (including, without limitation, any customer, supplier, licensee, licensor or other business relationship of the
Company) to work for or with the Independent Consultant in a business competitive to the Company or to work for a competitor of the Company. 

        6.3  The
Independent Consultant acknowledges that a breach by the Independent Consultant of any of the provisions of this Section 6 shall cause the Company irreparable
harm and that the Company shall be entitled to injunctive and other equitable relief against the Independent Consultant to prevent a breach or threatened breach of any provision hereof, in addition to
any other remedies the Company may have, and that the provisions of this Section 6 shall be specifically enforceable against the Independent Consultant in accordance with their terms. 

        6.4  As
consideration for the non-competition covenants contained in this Section 6, the Independent Consultant shall be entitled to a gross sum equal to
33% of the Independent Consultant's then applicable Base Payment (the "Consideration") which will be paid in a single installment on the Expiration Date. 

        6.5  In
the event that the Independent Consultant does not comply with the non-competition obligation provided herein, the Independent Consultant shall pay to the
Company, as a penalty, a sum equal to two (2) times the Consideration, plus any additional damages suffered by the Company. 

        7.    Waiver.    No waiver of any breach of any term or provision of
this Agreement shall be construed to be, nor shall be, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and signed by the party waiving the breach. 

        8.    Modifications.    This Agreement may not be amended or modified
other than by a written agreement executed by the Independent Consultant and the Company. 

        9.    Proprietary Information and Inventions Agreement; Other.    As
an inducement and condition to the Company's willingness to enter into this Agreement, the Independent Consultant shall execute (a) the Company's standard form Proprietary Information and
Inventions Agreement (which shall be 

5

 

effective from and after the date of the Independent Consultant's commencement of its independent consultant relationship with Biosearch), and (b) the Company's standard form Insider Trading
Policy. 

        10.    Construction.    The captions of this Agreement are not part of
the provisions hereof and shall have no force or effect. The parties hereto agree and the Independent Consultant represents and warrants to the Company that at no time and under no circumstances shall
the Independent Consultant be deemed an employee of the Company or shall the Independent Consultant conduct himself in a manner so as to be deemed an employee of the Company. The Independent
Consultant (and not the Company) shall bear the sole risk of the characterization of the Services and/or the role of the Independent Consultant with the Company as anything other than an independent
consultant to the Company. 

        11.    Communications.    All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been duly given if delivered in person, by telecopy, telex or equivalent form of written telecommunication or if sent by
registered or certified mail, return receipt requested, postage prepaid, as follows: 

	To Company:	 	Versicor Inc.

34790 Ardentech Ct.

Fremont, California 94555

Attention: Corporate Secretary

Fax: (510) 739-3085
	

With copy to:	
 	

O'Melveny & Myers LLP

Embarcadero Center West

275 Battery Street, 26th Floor

San Francisco, California 94111

Attention: Peter T. Healy, Esq.

Fax: (415) 984-8701
	

To Independent Consultant:	
 	

c/o Constantino Ambrosio

Via Roberto Lepetit n. 34

Gerenzano, Italy 21040

Fax: 39 (029) 647-4400

Either
party may change the address at which notice shall be given by written notice given in the above manner. All notices required or permitted hereunder shall be deemed duly given and received on
the date of delivery, if delivered in person or by telex, telecopy or other written telecommunication on a
regular business day and within normal business hours or on the fifth day next succeeding the date of mailing, if sent by certified or registered mail. 

        12.    Execution.    This Agreement is being executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Photographic copies of such signed counterparts may be used in lieu of
the originals for any purpose. 

        13.    Survival.    The provisions of this Agreement, shall survive
the term of this Agreement to the extent necessary to accommodate full performance of all such terms. 

        14.    Governing Law.    The terms of this Agreement shall be governed
by Italian law. 

[Remainder
of Page Intentionally Left Blank] 

6

   
        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Execution Date to be effective as of the Effective Date. 

	 	 	"COMPANY"
	

 	
 	
VERSICOR INC., a Delaware corporation
	

 	
 	

By:	

/s/  GEORGE F. HORNER III      
 George F. Horner III

President and Chief Executive Officer
	

 	
 	
"INDEPENDENT CONSULTANT"
	

 	
 	

/s/  CONSTANTINO AMBROSIO      
 Constantino Ambrosio

[SIGNATURE
PAGE TO AMBROSIO INDEPENDENT CONSULTANT AGREEMENT] 

S-1

  

 
 

EXHIBIT A    
    
    FORM OF NEW STOCK OPTION AGREEMENT    
  

        Pursuant to the Grant Notice and this Stock Option Agreement, the Company has granted you an option to purchase the number of shares of the Company's common stock
("Common Stock") indicated in the Grant Notice at the exercise price indicated in the Grant Notice. 

        Your
option is granted in connection with and in furtherance of the Company's 2001 Stock Option Plan (the "Plan") for the Company's employees (including officers), directors or
consultants. Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan. 

        The
details of your option are as follows: 

        1.    VESTING.    Subject to the limitations contained herein, your option will vest as
provided in the Grant Notice, provided that vesting will cease upon the termination of your Continuous Status as an Employee, Director or Consultant. The vesting schedule requires continued employment
or service through each applicable vesting date as a condition to the vesting of the applicable installment of the options and the rights and benefits under this Stock Option Agreement. Employment or
service, even if substantial, for only a portion of a vesting period will not entitle you to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a
termination of employment or service as provided herein. 

        2.    METHOD OF PAYMENT.    

        (a)    Payment Options.    Payment of the exercise price by cash or check is due in full upon
exercise of all or any part of your option, provided that you may elect, to the extent permitted by applicable law and the Grant Notice, to make payment of the exercise price under one of the
following alternatives: 

          (i)  Payment
pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board which, prior to the issuance of Common Stock, results in
either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds; 

        (ii)  Provided
that at the time of exercise the Company's Common Stock is publicly traded and quoted regularly in the Wall Street Journal, payment by delivery of
already-owned shares of Common Stock, held for the period required to avoid a charge to the Company's reported earnings, and owned free and clear of any liens, claims. encumbrances or security
interests, which Common Stock shall be valued at its fair market value on the date of exercise; or 

        (iii)  Payment
by a combination of the above methods. 

        3.    WHOLE SHARES; RIGHTS WITH RESPECT TO SHARES.    Your option may only be exercised for
whole shares. You will have no rights or privileges of a stockholder of the Company as to any shares underlying the option until the issuance and delivery of a certificate evidencing the shares
registered in your name following the exercise of the option. No adjustment will be made for dividends or other rights as to a stockholder for which a record date is prior to such date of delivery. 

        4.    SECURITIES LAW COMPLIANCE.    Notwithstanding anything to the contrary contained herein,
your option may not be exercised unless the shares issuable upon exercise of your option are then registered under the Securities Act of 1933, as amended (the "Securities Act"), or, if such shares are
not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. 

A-1

 

        5.    TERM.    Subject to Section 12 of the Plan, the term of your option commences on
the Date of Grant and expires upon the earliest of: 

          (i)  the
Expiration Date indicated in the Grant Notice; 

        (ii)  the
tenth (10th) anniversary of the Date of Grant; 

        (iii)  eighteen
(18) months after your death, if you die during, or within three (3) months after the termination of your Continuous Status as Employee,
Director or Consultant; 

        (iv)  twelve
(12) months after the termination of your Continuous Status as Employee, Director or Consultant due to disability; 

        (v)  immediately
after the termination of your Continuous Status as Employee, Director or Consultant for Cause; or 

        (vi)  three
(3) months after the termination of your Continuous Status as an Employee, Director or Consultant for any other reason, provided that if during any part of
such three (3)-month period the option is not exercisable solely because of the condition set forth in paragraph 5 (Securities Law Compliance), in which event the option shall not expire until
the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the termination of Continuous Status as an Employee, Director or
Consultant. 

        For
these purposes, "Cause" shall include, but not be limited to, the commission of any act of fraud, embezzlement or dishonesty, any unauthorized use or disclosure of confidential
information or trade secrets of the Company or any of its Affiliates, or any other intentional misconduct adversely affecting the business or affairs of the Company or any of its Affiliates in a
material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Company may consider as ground for your dismissal or discharge. 

        In
all cases, the option, to the extent not exercisable on the date your Continuous Status as an Employee, Director or Consultant terminates (regardless of the reason), shall terminate
on that date. 

        To
obtain the federal income tax advantages associated with an "incentive stock option" (to the extent your option is intended and qualifies as an incentive stock option) the Code
requires that at all times beginning on the grant date of the option and ending on the day three (3) months before the date of the option's exercise, you must be an employee of the Company or
one of its Affiliates, except in the event of your death or permanent and total disability. The Company cannot guarantee that your option will be treated as an "incentive stock option" if you exercise
your option more than three (3) months after the date your employment with the Company and its Affiliates terminates. 

        6.    EXERCISE.    

        (a)  You
may exercise the vested portion of your option during its term by delivering a notice of exercise (in a form designated by the Company) together with the exercise
price to the Secretary of the Company, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then require. 

        (b)  By
exercising your option you agree that: 

          (i)  as
a condition to any exercise of your option, the Company may require you to enter an arrangement providing for the payment by you to the Company of any tax
withholding obligation of the Company (and/or any of its Affiliates) arising by reason of (1) the exercise of your option; (2) the lapse of any substantial risk of forfeiture to which
the shares are subject at the time of exercise; or (3) the disposition of shares acquired upon such exercise; and 

A-2

 

        (ii)  you
will notify the Company in writing within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise
of an incentive stock option that occurs within two (2) years after the Date of Grant or within one (1) year after such shares of Common Stock are transferred upon exercise of your
option. 

        7.    TRANSFERABILITY.    Your option is not transferable, except by will or by the laws of
descent and distribution, and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may
designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. 

        8.    OPTION NOT A SERVICE CONTRACT.    Your option is not an employment contract and nothing
in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or one of its Affiliates, or of the Company and its Affiliates to
continue your employment with the Company or any of its Affiliates. In addition, nothing in your option shall obligate the Company, any Affiliate, and their respective shareholders, board of
directors, officers or employees to continue any relationship which you might have as a director or consultant for the Company or one of its Affiliates. 

        9.    NOTICES.    Any notices provided for in your option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five
(5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 

        10.    GOVERNING PLAN DOCUMENT.    Your option is subject to all the provisions of the Plan,
the provisions of which are hereby made a part of your option, including without limitation the provisions of the Plan relating to option provisions, and is further subject to all interpretations,
amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your option and those of the Plan,
the provisions of the Plan shall control. Unless otherwise expressly provided in this Stock Option Agreement, provisions of the Plan that confer discretionary authority on the Board (or a committee
thereof) do not (and shall not be deemed to) create any additional rights for you not expressly set forth in this Stock Option Agreement 

A-3

  

 
 

EXHIBIT B    
    
    FORM OF REPLACEMENT STOCK OPTION AGREEMENT    
    
    STOCK OPTION AGREEMENT    
  

        Pursuant to the Grant Notice and this Stock Option Agreement, the Company has granted you an option to purchase the number of shares of the Company's common stock
("Common Stock") indicated in the Grant Notice at the exercise price indicated in the Grant Notice. 

        Your
option is granted in connection with and in furtherance of the Company's 2002 Stock Option Plan (the "Plan") for the Company's employees (including officers), directors or
consultants. Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan. 

        The
details of your option are as follows: 

        1.    VESTING.    Subject to the limitations contained herein, your option will vest as
provided in the Grant Notice, provided that vesting will cease upon the termination of your Continuous Status as an Employee, Director or Consultant. The vesting schedule requires continued employment
or service through each applicable vesting date as a condition to the vesting of the applicable installment of the options and the rights and benefits under this Stock Option Agreement. Employment or
service, even if substantial, for only a portion of a vesting period will not entitle you to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a
termination of employment or service as provided herein. 

        2.    METHOD OF PAYMENT.    Payment of the exercise price by cash or check is due in full upon
exercise of all or any part of your option. 

        3.    WHOLE SHARES; RIGHTS WITH RESPECT TO SHARES.    Your option may only be exercised for
whole shares. You will have no rights or privileges of a stockholder of the Company as to any shares underlying the option until the issuance and delivery of a certificate evidencing the shares
registered in your name following the exercise of the option. No adjustment will be made for dividends or other rights as to a stockholder for which a record date is prior to such date of delivery. 

        4    SECURITIES LAW COMPLIANCE.    Notwithstanding anything to the contrary contained herein,
your option may not be exercised unless the shares issuable upon exercise of your option are then registered under the Securities Act of 1933, as amended (the "Securities Act"), or, if such shares are
not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. 

        5.    TERM.    Subject to Section 10 of the Plan, the term of your option commences on
the Date of Grant and expires upon the earliest of: 

          (i)  the
Expiration Date indicated in the Grant Notice; 

        (ii)  the
tenth (10th) anniversary of the Date of Grant; 

        (iii)  eighteen
(18) months after your death, if you die during, or within three (3) months after the termination of your Continuous Status as Employee,
Director or Consultant; 

        (iv)  twelve
(12) months after the termination of your Continuous Status as Employee, Director or Consultant due to disability; 

        (v)  immediately
after the termination of your Continuous Status as Employee, Director or Consultant for Cause; or 

        (vi)  three
(3) months after the termination of your Continuous Status as an Employee, Director or Consultant for any other reason, provided that if during any part of
such three (3)- 

B-1

 

month period the option is not exercisable solely because of the condition set forth in paragraph 4 (Securities Law Compliance), in which event the option shall not expire until the earlier of
the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the termination of Continuous Status as an Employee, Director or Consultant. 

        For
these purposes, "Cause" shall include, but not be limited to, the commission of any act of fraud, embezzlement or dishonesty, any unauthorized use or disclosure of confidential
information or trade secrets of the Company or any of its Affiliates, or any other intentional misconduct adversely affecting the business or affairs of the Company or any of its Affiliates in a
material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Company may consider as ground for your dismissal or discharge. 

        In
all cases, the option, to the extent not exercisable on the date your Continuous Status as an Employee, Director or Consultant terminates (regardless of the reason), shall terminate
on that date. 

        6.    EXERCISE.    

        (a)  You
may exercise the vested portion of your option during its term by delivering a notice of exercise (in a form designated by the Company) together with the exercise
price to the Secretary of the Company, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then require. 

        (b)  By
exercising your option you agree that: as a condition to any exercise of your option, the Company may require you to enter an arrangement providing for the payment by
you to the Company of any tax withholding obligation of the Company (and/or any of its Affiliates) arising by reason of the exercise of your option. 

        7.    TRANSFERABILITY.    Your option is not transferable, except by will or by the laws of
descent and distribution, and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may
designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. 

        8.    OPTION NOT A SERVICE CONTRACT.    Your option is not an employment contract and nothing
in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or one of its Affiliates, or of the Company and its Affiliates to
continue your employment with the Company or any of its Affiliates. In addition, nothing in your option shall obligate the Company, any Affiliate, and their respective shareholders, board of
directors, officers or employees to continue any relationship which you might have as a director or consultant for the Company or one of its Affiliates. 

        9.    NOTICES.    Any notices provided for in your option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five
(5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 

        10.    GOVERNING PLAN DOCUMENT.    Your option is subject to all the provisions of the Plan,
the provisions of which are hereby made a part of your option, including without limitation the provisions of the Plan relating to option provisions, and is further subject to all interpretations,
amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your option and those of the Plan,
the provisions of the Plan shall control. Unless otherwise expressly provided in this Stock Option Agreement, provisions of the Plan that confer discretionary authority on the Board (or a committee
thereof) do not (and shall not be deemed to) create any additional rights for you not expressly set forth in this Stock Option Agreement. 

B-2

QuickLinks

Exhibit 10.38

INDEPENDENT CONSULTANT AGREEMENT

EXHIBIT A FORM OF NEW STOCK OPTION AGREEMENT

EXHIBIT B FORM OF REPLACEMENT STOCK OPTION AGREEMENT STOCK OPTION AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]