Document:

Exhibit 10(g)(3)

 

PROTECTIVE LIFE CORPORATION

DEFERRED COMPENSATION PLAN

FOR OFFICERS

(AS
AMENDED AND RESTATED AS OF JANUARY 1, 2009)

 

Section 1.              Purpose;
Plan Eligibility

 

The
purpose of this Plan is to enable each Officer of the Company to save for retirement
and other long-term needs by deferring receipt of a portion of the Officer’s
compensation and by receiving additional deferred compensation that cannot be
provided under the 401(k) Plan due to restrictions on the 401(k) Plan
contained in the Code.

 

Section 2.              Definitions

 

“Accounts” shall mean a Participant’s Pay Deferral
Account, Stock Deferral Account and Matching Account under the Plan.

 

“Base Salary” shall mean (a) a Participant’s base
salary, as set forth in the records of the Company, and (b) any bonus
payable in cash that does not meet the requirements of a Cash Bonus.

 

“Board” shall mean the Board of Directors of the
Company or any duly authorized committee thereof.

 

“Cash Bonus” shall mean the annual cash bonus payable to
a Participant under the Company’s Annual Incentive Plan (or such other
eligible bonus plans as may be determined by the Company), and excluding sales,
special or “one-time” bonuses (as determined by the Company).  The term “Cash Bonus” shall refer only to an
annual bonus that is payable upon the satisfaction of pre-established
organizational or individual performance criteria and that, at the time a
Deferral Election is made, is not substantially certain to be paid.

 

“Change of Control” shall occur (subject to the provisions of
Code Section 409A), when (i) any one person (or more than one person
acting as a group (as provided in Code Section 409A)) (such person or
group, an “Acquiring Person”) acquires ownership of the Company’s stock that,
together with stock previously held by the Acquiring Person, constitutes more
than 50% of the total fair market value or more than 50% of the total voting
power of the Company, or (ii) a majority of the members of the Board is
replaced during any 12-month period by directors whose appointment or election
was not endorsed by a majority of the members of the Board before the date of
the appointment or election, or (iii) an Acquiring Person acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such Acquiring Person) assets from the Company that have a total
gross fair market value equal to or more than 80% of the total gross fair
market value of the Company’s assets immediately before such acquisition or
acquisitions.

 

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“Closing Price” of the Common Stock on any trading day shall mean the
daily closing price for a share of the Common Stock on the Composite Tape for
the New York Stock Exchange or, if the Common Stock is not listed on such
Exchange, on the principal United States securities exchange registered under
the Exchange Act on which the Common Stock is listed or, if the Common Stock is
not listed on any such exchange, the average of the daily closing bid
quotations with respect to a share of the Common Stock on the National
Association of Securities Dealers, Inc., Automated Quotations System or
any system then in use or, if no such quotations are available, the fair market
value of a share of the Common Stock as determined by a majority of the Board.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time.  Reference to a Section of the
Code shall include that Section, the regulations promulgated thereunder, and
any comparable section of any future legislation that amends, supplements or
supersedes such Section, effective as of the date such comparable Section is
effective with respect to the Plan.

 

“Committee” shall mean the Compensation and Management
Succession Committee of the Board (or its designee).

 

“Common Stock” shall mean the common stock of the Company.

 

“Company” shall mean Protective Life Corporation, a
Delaware corporation, and any successor thereto.

 

“Company Matching Contribution” shall have the meaning set forth in the 401(k) Plan.

 

“Compensation” shall mean an Officer’s Base Salary, Cash
Bonuses, and shares of Common Stock that are issuable to the Officer
under the Company’s Long-Term Incentive Plan and are designated by the Company
as eligible for deferral hereunder.

 

“Deferral Election” shall mean the election by a Participant to
defer receipt of Compensation pursuant to Section 3.

 

“Disability” shall mean that the Participant (1) is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of at least 12 months,
(2) is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of at least 12 months, receiving income replacement
benefits for a period of not less than 3 months under an accident and health
plan covering employees of the Company, or (3) has been determined to be
totally disabled by the Social Security Administration.

 

“ERISA” shall mean the Employee Retirement Income
Security Act of 1974, as amended.

 

“Exchange Act” shall mean the Securities Exchange Act of
1934, as amended.

 

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“401(k) Plan” shall mean the Company’s 401(k) and
Stock Ownership Plan, as from time to time amended.

 

“Matching Account” shall mean a book entry account established
by the Company to record the amounts credited to a Participant with respect to
the Participant’s Supplemental Matching Contributions (and earnings thereon).

 

“Mutual Fund Investments Matching Subaccount” shall mean a subaccount of the Matching
Account for that portion of each allocation of Supplemental Matching
Contributions that the Participant initially elects to allocate to a Phantom
Fund other than the Protective Stock Fund (as provided in Section 4(d))
(and earnings thereon).

 

“Mutual Fund Investments Pay Deferral Subaccount” shall mean a subaccount of the Pay Deferral
Account for (1) all deferrals of cash bonuses made pursuant to the Plan
before January 1, 2005 that were credited as a “cash allotment” as of December 31,
2004, and (2) all deferrals of Base Salary and Cash Bonuses made pursuant
to the Plan after December 31, 2004 that the Participant initially elects
to allocate to a Phantom Fund other than the Protective Stock Fund (as provided
in Section 4(d)) (and earnings thereon).

 

“Officer” shall mean an officer of the Company (as
determined by the Company in its sole discretion) who is a member of a “select
group of management or highly compensated employees” within the meaning of
ERISA.

 

“Participant” shall mean any Officer who either (a) is
eligible to make and does make a Deferral Election, or (b) has a
Supplemental Matching Contribution allocated to his or her Matching Account.

 

“Participating Companies” shall mean the Company and its affiliated
companies.

 

“Pay Deferral Account” shall mean a book entry account established
by the Company to record the amounts credited pursuant to a Participant’s Deferral
Election with respect to Base Salary or Cash Bonuses (and earnings thereon).

 

“Phantom Fund” shall mean one or more mutual funds or other
investments (including the Protective Stock Fund) which shall determine the
hypothetical investment experience of the Participant’s Accounts under the Plan
as provided in Section 4.

 

“Plan” shall mean the Protective Life Corporation Deferred Compensation Plan
for Officers, as from time to time amended.

 

“Plan Year” shall mean each period beginning on January 1
and ending on December 31 of the same year.

 

“Post-2008 Subaccount” shall mean a subaccount for (1) all
amounts credited to a Participant’s Pay Deferral Account after December 31,
2008 (and earnings thereon), and (2) all 

 

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amounts credited to a Participant’s Stock Deferral Account after December 31,
2008 (and earnings thereon).

 

“Pre-2005 Subaccount” shall mean a subaccount for (1) all
amounts credited to a Participant’s Pay Deferral Account before January 1,
2005 (and earnings thereon), and (2) all amounts credited to a Participant’s
Stock Deferral Account before January 1, 2005 (and earnings thereon).

 

“Protective Stock Fund” shall mean a Phantom Fund that is deemed to
be invested primarily in Common Stock.

 

“Protective Stock Investment Matching Subaccount” shall mean a subaccount of the Matching
Account for (1) one-half of each allocation of Supplemental Matching
Contributions (and earnings thereon), plus (2) that portion of the
remaining one-half of each allocation of Supplemental Matching Contributions
that the Participant initially elects to allocate to the Protective Stock Fund
(as provided in Section 4(d)) (and earnings thereon).

 

“Protective Stock Investment Pay Deferral
Subaccount” shall
mean a subaccount of the Pay Deferral Account for (1) all amounts
attributable to deferrals of cash bonuses made pursuant to the Plan before January 1,
2005 that were credited as a “stock allotment” as of December 31, 2004
(and earnings thereon), and (2) all deferrals of Base Salary and Cash
Bonuses made pursuant to the Plan after December 31, 2004, that the
Participant initially elects to allocate to the Protective Stock Fund (as
provided in Section 4(d)) (and earnings thereon).

 

“Specified
Employee” shall mean, with respect to April 1 of
each Plan Year (beginning April 1, 2005) and for the 12-month period
thereafter, any person who met the definition of a “key employee” of the
Company under Code Section 416(i) (without regard to Code Section 416(i)(5))
at any time during the preceding Plan Year, all as provided in Code Section 409A.

 

“Stock Deferral Account” shall mean a book entry account established
by the Company to record the amounts credited pursuant to a Participant’s
Deferral Election with respect to Compensation in the form of Common Stock (and
earnings thereon).

 

“Supplemental Matching Contribution” shall mean a credit to a Participant’s
Matching Account, determined as provided in Section 5.

 

“Termination
of Employment” shall mean a Participant’s “separation
from service” with the Company and each other Participating Company by which
the Participant is employed, as defined in Code Section 409A (other than a
separation from service as a result of death or Disability).

 

“2005-2008 Subaccount” shall mean a subaccount for (1) all
amounts credited to a Participant’s Pay Deferral Account after December 31,
2004 and before January 1, 2009 (and earnings thereon), and (2) all amounts credited to a Participant’s
Stock Deferral Account after December 31, 2004 and before January 1,
2009 (and earnings thereon).

 

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“Unforeseeable Emergency” shall have the meaning set forth in Section 7(k).

 

Section 3.              Deferral
of Compensation

 

(a) 
Deferral Elections.  On or before December 31
of any calendar year, an Officer may elect to defer receipt of Base Salary
otherwise payable to the Officer for services rendered in a subsequent calendar
year.  On or before June 30 of any
calendar year and subject to the requirements of Code Section 409A, an
Officer who has been continuously employed by the Participating Companies from
the later of (1) January 1 of such calendar year and (2) the
date on which the performance criteria with respect to the Cash Bonus or Common
Stock award for such calendar year were established may elect to defer receipt
of Cash Bonuses and Common Stock otherwise payable to the Officer with respect
to a performance period ending on December 31 of the year in which the
deferral election is made.  Furthermore,
when an Officer who is not (and has not during the immediately preceding 24
months been) eligible to participate in any other plan, program or arrangement
of the Company which must be aggregated with the Plan for purposes of Code Section 409A
first becomes eligible to participate in the Plan, the Officer may elect,
within the 30 day period immediately following such eligibility date, to defer
receipt of Base Salary otherwise payable to the Officer in the calendar year in
which such eligibility date occurs with respect to services performed after the
date of the Deferral Election.  A
Deferral Election shall be made by written or electronic notice on a form or in
a manner prescribed by or acceptable to the Company and shall be effective only
when properly filed with the Company.  The
Company may from time to time establish minimum and maximum amounts (which may
be stated as percentages of Compensation) that an Officer may defer.  Any Deferral Election shall be subject
to such conditions as the Company shall determine.

 

(b) 
Form and Duration of Election to Participate.  Unless otherwise specified in a Deferral
Election (or as provided in Section 7(k)), a Deferral Election made by a
Participant shall continue in effect (including with respect to Compensation
payable in subsequent calendar years) unless and until the Participant revokes
or modifies such election by written or electronic notice on a form or in a
manner prescribed by or acceptable to, and filed with, the Company.  Any such revocation or modification of a
Deferral Election shall become effective only with respect to Compensation
payable with respect to services performed or a performance period ending in
the calendar year following the Company’s receipt of such revocation or
modification.

 

(c) 
Renewal.  A Participant who has
revoked a Deferral Election may file a new Deferral Election to defer
Compensation payable with respect to services performed or a performance period
ending in the calendar year following the year in which such new Deferral
Election is filed.

 

(d)  Participant with Previous Termination.  Any Plan provision to the contrary
notwithstanding, a former Participant who is an Officer and who has previously
received a distribution from the Plan upon Termination of Employment may not
recommence participation in the Plan until the second calendar year after the
year in which the former Participant again became an Officer.

 

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Section 4.              Pay
Deferral, Stock Deferral and Matching Accounts

 

(a)   General.  The Company shall establish and maintain (1) a
separate Pay Deferral Account for each Participant who has deferred Base Salary
or Cash Bonuses, (2) a separate Stock Deferral Account for each
Participant who has deferred Common Stock that was otherwise issuable under the
terms of the Company’s Long-Term Incentive Plan, and (3) a separate
Matching Account for each Participant who receives a Supplemental Matching
Contribution (as provided in Section 5). 
The Company shall also establish and maintain (1) the appropriate
Mutual Fund Investments Pay Deferral Subaccount and Protective Stock Investment
Pay Deferral Subaccount within each Deferral Account, (2) the Protective
Stock Fund within each Stock Deferral Account, (3) the appropriate Mutual
Fund Investments Matching Subaccount and Protective Stock Investment Matching
Subaccount within each Matching Account, and (4) as appropriate, Pre-2005
Subaccounts, 2005-2008 Subaccounts and Post-2008 Subaccounts within each Pay
Deferral Account and Stock Deferral Account. 
Within each Account and Subaccount, the Company shall maintain records
on a Plan Year basis.

 

(b) 
Credits to Accounts.  An amount
equal to the amount of Base Salary and Cash Bonus deferred pursuant to a
Participant’s Deferral Election shall be credited to the Participant’s Pay
Deferral Account as of the date such Compensation would otherwise have been
paid to the Participant. A number of stock equivalents equal to the number of
shares of Common Stock deferred pursuant to a Participant’s Deferral Election
shall be credited to the Participant’s Stock Deferral Account as of the date
such Compensation would otherwise have been paid to the Participant.   A Participant’s Supplemental Matching
Contribution for a Plan Year shall be credited to the Participant’s
Supplemental Matching Account as of the date such amounts would have been
allocated as the Company Matching Contributions to the accounts of the
Participant in the 401(k) Plan but for application of the applicable Code
limits.  Each amount so credited to an
Account shall also be allocated to the appropriate Subaccount or Subaccounts
within such Account.

 

(c) 
Designation of Phantom Funds.  The
Company shall select Phantom Funds which shall be used to determine the
hypothetical investment experience of each Participant’s Accounts under the
Plan.  Except as provided in Section 8(a),
the Protective Stock Fund shall be the only Phantom Fund available for the
Protective Stock Investment Pay Deferral Subaccount, the Stock Deferral Account
and the Protective Stock Investment Matching Subaccount.

 

(d) 
Investment Election.  Each
Participant shall from time to time designate, in such manner as may be
approved by the Company, the Phantom Fund or Funds that shall determine the
investment experience with respect to such Participant’s Mutual Fund
Investments Pay Deferral Subaccount and Mutual Fund Investments Matching
Subaccount.  The Company may, in its
discretion, (1) establish minimum amounts (in terms of dollar amounts or percentages)
that may be allocated to any Phantom Fund, (2) establish rules regarding
the time at which any such election (or any change in such election permitted
under Section 4(e)) shall become effective, and (3) permit transfers
among Phantom Funds in a Participant’s Mutual Fund Investments Pay Deferral
Subaccount and Mutual Fund Investments Matching Subaccount balances, pursuant
to such procedures as the Company shall determine.  If a Participant fails to make a valid
election with respect to any amount allocated to the Participant’s Mutual Fund
Investments Pay Deferral

 

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Subaccount
or the Participant’s Mutual Fund Investments Matching Subaccount (or if any
such election ceases to be effective), such amount shall be deemed invested in
the Phantom Fund which the Company determines generally to have the least risk
of loss of principal.

 

(e) 
Change in Designation of Phantom Fund. 
Any change in the Phantom Funds designated with respect to all or any
portion of a Participant’s Mutual Fund Investments Pay Deferral Subaccount and
Mutual Fund Investments Matching Subaccount shall comply with the currently
applicable rules established by the Company and all rules applicable
with respect to any initial designation of such Phantom Funds.  Except as provided in Section 8(a), in
no event may a Participant transfer funds from a Phantom Fund other than the
Protective Stock Fund to the Protective Stock Fund, or transfer funds from the
Protective Stock Fund to another Phantom Fund.

 

(f) 
Allocations to Protective Stock Fund.  
If deferred Base Salary (other than the bonuses included in the
definition of “Base Salary”) has been allocated to the Protective Stock Fund,
the Protective Stock Fund in the Participant’s Protective Stock Investment Pay
Deferral Subaccount shall be credited with a stock equivalent that shall be
equal to the number of full and fractional shares of Common Stock that could be
purchased with the dollar amount of the allotment, based upon the Closing Price
of the Common Stock as of the date of allocation.  If a deferred Cash Bonus or a bonus included
in the definition of “Base Salary” has been allocated to the Protective Stock
Fund, the Protective Stock Fund in the Participant’s Protective Stock
Investment Pay Deferral Subaccount shall be credited with a stock equivalent
that shall be equal to the number of full and fractional shares of Common Stock
that could be purchased with the dollar amount of the allotment, based upon the
average of the Closing Price of the Common Stock for the twenty (20) trading
days ending on the day preceding the date of allocation.  Each allocation of Supplemental Matching
Contributions to the Protective Stock Fund in the Participant’s Protective
Stock Investment Matching Subaccount for a Plan Year shall be based upon (1) the
amount of the Supplemental Matching Contribution so allocated, and (2) the
price per share of Common Stock that would have been used to allocate such
Supplemental Matching Contributions had they been allocable as Company Matching
Contributions to the Participant’s account under the 401(k) Plan.

 

(g) 
Allocations to Other Phantom Funds.  
Allocations of deferred Base Salary, deferred Cash Bonuses, and
Supplemental Matching Contributions to the Phantom Funds (other than the
Protective Stock Fund) shall be based upon the amount deferred (or the amount
of the Supplemental Matching Contribution) and the value of the Phantom Fund as
of the date of allocation.

 

(h) 
Crediting of Phantom Investment Experience.  Except as provided in Section 4(i), as
of the last day of each calendar quarter (or such other time or times as the
Company may establish), each Account shall be credited or debited (as the case
may be) with an amount equal to the net investment gain or loss that such
Participant would have realized had the Participant actually invested in each
Phantom Fund an amount equal to the portion of the Participant’s Account
designated as deemed invested in such Phantom Fund during that calendar quarter
(or such other period as the Company may establish).

 

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(i)  Election to
Receive Cash.  If so elected as part
of an initial Deferral Election under Section 3(a), a Participant may
elect to be paid in cash, in lieu of the credit to the Participant’s Account as
provided in Section 4(h), an amount equal to the amount of dividends that
would otherwise be credited to the Protective Stock Fund in the Participant’s
Account with respect to amounts deferred pursuant to that election.  The Participant may make such election by
written or electronic notice on a form or in a manner prescribed by or
acceptable to the Company and properly filed with the Company.  The Company shall make payments to the
Participant pursuant to this Section 4(i) as soon as reasonably
practicable after (but no later than the end of the calendar year in which) any
corresponding dividend is paid.

 

Section 5.              Supplemental Matching
Contributions

 

(a) 
Eligibility for Supplemental Matching Contribution.  A Supplemental Matching Contribution shall be
credited to the Supplemental Matching Account of each Officer who (1) during
all or a portion of a Plan Year, was eligible to participate in the 401(k) Plan,
and (2) either (A) is employed by a Participating Company on the date
the Supplemental Matching Contribution for such Plan Year is generally
allocated to the Supplemental Matching Accounts of the Participants in the
Plan, or (B) whose termination of employment was due to Disability or
death, or (C) who terminated employment (for a reason other than
Disability or death) while eligible for a Normal or Early Retirement Benefit
pursuant to terms of the Company’s qualified pension plan.

 

(b) 
Determination of Supplemental Matching Contribution.  The Supplemental Matching Contribution for a
Participant for any Plan Year shall equal (1) the lesser
of (A) 4% of the Participant’s “Compensation” (as defined in the 401(k) Plan)
payable during the year (ignoring deferrals under the 401(k) Plan, this
Plan, and Code Section 125) and (B) the total amount of Base Salary
and Cash Bonus that the Participant deferred or contributed during the Plan
Year (under the 401(k) Plan and this Plan), minus (2) the actual
Company Matching Contribution that the Participant received under the 401(k) Plan
for such Plan Year, as determined while applying the restrictions imposed by
the Code.  The
first Supplemental Matching Contribution under the Plan shall be allocated in
2006 with respect to the 2005 Plan Year.

 

Section 6.              Vesting of Accounts

 

                Each Participant shall be fully vested in the
Participant’s Accounts at all times.

 

Section 7.              Distribution from Accounts

 

                (a)  General Provisions.  Distribution of any amount credited to a
Participant’s Accounts (other than amounts credited to the Protective Stock
Fund) shall be payable in cash. 
Distribution of any amount credited to a Participant’s Accounts in the
Protective Stock Fund shall be partly in shares of Common Stock and partly in
cash, with the cash portion equal to the sum of the tax withholding obligation
and the value of any fractional stock equivalents with respect to the

 

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distribution.  Distributions shall be subject to such rules and
procedures as the Company shall determine.

 

(b)  Timing of
Distributions. Distributions from each of a Participant’s Pay Deferral
Account and Stock Deferral Account may be made only (1) upon the death,
Disability or Termination of Employment of the Participant, (2) at the
times elected by the Participant pursuant to the provisions of this Section 7,
or (3) on account of an Unforeseeable Emergency (as provided in Section 7(k)).  Distributions from a Participant’s Matching
Account may be made only upon the death, Disability or Termination of
Employment of the Participant.

 

(c) 
Initial Distribution Elections. 
In order to make an effective Deferral Election, each Participant must
file with the Company, as a part of the Participant’s Deferral Election under Section 3(a),
a written or electronic initial election with respect to the timing and manner
of distribution of the amount credited to the Participant’s Pay Deferral
Account and Stock Deferral Account and to the manner of distribution of the
amount credited to the Participant’s Supplemental Matching Account. An
election with respect to a Participant’s Pay Deferral Account and Stock Deferral Account may include an
election to begin distribution upon Termination of Employment (which election,
for a Participant’s 2005-2008 Subaccounts and Post-2008 Subaccounts, shall be
irrevocable after December 31, 2008) or an election to begin distribution
upon such specified date as may be elected by the Participant (which election
may be amended as provided in Section 7(d), 7(e) or 7(f) (as the
case may be)).  An election with respect
to a Participant’s Pay Deferral
Account, Stock Deferral Account or Supplemental Matching Account may
include an election to receive a
distribution (1) in one lump-sum payment, or (2) in annual
installments over a period not to exceed ten (10) years, as the
Participant may designate (which election may be amended as provided in Section 7(d),
7(e) or 7(f) (as the case may be)).  Each such initial election may
be made with respect to such portion of the Participant’s Pay Deferral Account,
Stock Deferral Account and Matching Account related to the corresponding
Deferral Election (e.g., prospectively,
on a Plan Year by Plan Year basis) and pursuant to such rules and
procedures as the Company may establish from time to time.

 

(d) 
Amendment of Distribution Elections—Pre-2005 Subaccounts.  A Participant may elect to change the time
and manner of distributions from the Pre-2005 Subaccounts in the Participant’s
Pay Deferral Account and Stock Deferral Account in accordance with the terms of
the Plan as in effect on October 3, 2004; provided that
no such election shall be effective unless the election is made and received by
the Company before the Participant’s Termination of Employment or Disability
and before the first day of the calendar year in which payments (1) are to
begin pursuant to such election and (2) would have begun absent such
election.

 

(e) 
Amendment of Distribution Elections—2005-2008 Subaccounts.  (1) Before January 1, 2009 and
subject to compliance with the requirements for a transition election under
Code Section 409A, a Participant may elect to change the time and manner
of distributions from the 2005-2008 Subaccounts in the Participant’s Pay
Deferral Account and Stock Deferral Account; provided that
no such election shall be effective unless the election was made and received
by the Company before the Participant’s Termination of Employment or Disability
and before January 1, 2009.

 

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(2) After
December 31, 2008, a Participant may elect to change the time and manner
of distributions to be made on a specified date elected by the Participant from
the 2005-2008 Subaccounts in the Participant’s Pay Deferral Account and Stock
Deferral Account; provided that (A) such
election must be made and received by the Company before the Participant’s
Termination of Employment or Disability, (B) such election shall not take
effect until at least 12 months after the date on which it is made, (C) such
election may not be made less than 12 months before the date the first such
payment is scheduled to be paid, and (D) the payment with respect to which
such election is made must be deferred for a period of not less than 5 years
from the date the first such payment would otherwise have been paid.  For purposes of Code Section 409A, an
election to receive installment payments shall be treated as an election to receive
a single payment.

 

(f) 
Amendment of Distribution Elections—Post-2008 Subaccounts.  A Participant may elect to change the time
and manner of distributions to be made on a specified date elected by the
Participant from the Post-2008 Subaccounts in the Participant’s Pay Deferral
Account and Stock Deferral Account; provided that (1) such
election must be made and received by the Company before the Participant’s
Termination of Employment or Disability, (2) such election shall not take
effect until at least 12 months after the date on which it is made, (3) such
election may not be made less than 12 months before the date the first such
payment is scheduled to be paid, and (4) the payment with respect to which
such election is made must be deferred for a period of not less than 5 years
from the date the first such payment would otherwise have been paid.  For purposes of Code Section 409A, an
election to receive installment payments shall be treated as an election to
receive a single payment.

 

(g) 
Amendment of Distribution Elections—Supplemental Matching Account.  A Participant may not elect to change the
manner of distributions from Participant’s Supplemental Matching Account after
an election as to the form of distribution has become effective.

 

(h)  Death.  If a Participant dies before distribution of
the entire balance in the Participant’s Account, the balance in the Account
shall be payable in a lump sum to:

 

(1)           the
surviving beneficiary (or surviving beneficiaries in such proportions as) the
Participant may have designated by notice in writing to the Company unrevoked
by a later notice in writing to the Company or, in the absence of an unrevoked
notice;

 

(2)           the Participant’s
estate.

 

Payment under this
Section 7(h) shall be made on the first business day of the second
calendar month after the calendar month in which the Participant’s death
occurred.  The beneficiary of a deceased
Participant is responsible for notifying the Company of the death of the
Participant.

 

                (i)  Disability.  Any other elections made by the Participant
to the contrary notwithstanding, if a Participant incurs a Disability, the
entire balance in the Participant’s

 

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Account shall be paid to
the Participant in a lump sum.  Payment
under this Section 7(i) shall be made on the tenth business day after
the Company determines that the Participant is Disabled.

 

(j)  Termination
of Employment.  Subject to Section 7(o),
payment of a lump sum pursuant to a Participant’s election to receive a distribution
upon Termination of Employment shall be made on the twentieth (20th) business day after the date
of the Participant’s Termination of Employment. 
Subject to Section 7(o), payment of annual installments pursuant to
a Participant’s election to begin distribution upon Termination of Employment
shall begin on the twentieth (20th)
business day after the date of the Participant’s Termination of Employment.

 

(k) 
Unforeseeable Emergency.  (1) General
Provisions.  If a Participant applies
for a distribution from the Participant’s Pay Deferral or Stock Deferral
Accounts in the event of an Unforeseeable Emergency (as defined below) and the
Company determines, in good faith upon reasonable investigation and in its sole
discretion, that such Participant has experienced an Unforeseeable Emergency,
then the Plan may make a distribution to or for the benefit of Participant from
such Accounts.  “Unforeseeable Emergency”
shall mean a severe financial hardship of the Participant or beneficiary
resulting from (A) an illness or accident of the Participant or the
beneficiary, the Participant’s or the beneficiary’s spouse, or the Participant’s
or the beneficiary’s dependent (as defined in Code Section 152(a)); (B) loss
of the Participant’s or the beneficiary’s property due to casualty (including
the need to rebuild a home following damage to the home not otherwise covered
by insurance); (C) imminent foreclosure of or eviction from the
Participant’s or the beneficiary’s primary residence; (D) the need to pay
for medical expenses of the Participant or a beneficiary; (E) the need to
pay for funeral expenses of the Participant’s spouse or dependents (as defined
in Code Section 152(a)); or (F) other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant or beneficiary, all as provided in Code Section 409A.  Whether a Participant or beneficiary is faced
with an Unforeseeable Emergency will determined based on the facts and
circumstances of each case but, in any case, no distribution will be made to
the extent that such emergency is or may be relieved (A) through
reimbursement or compensation from insurance or otherwise; (B) by
liquidation of the Participant’s assets, to the extent the liquidation of such
assets would not itself cause severe financial hardship; or (C) by
cessation of deferrals under the Plan. 
The purchase of a home and payment of college tuition are not
Unforeseeable Emergencies.

 

(2) 
Amount Distributable; Date of Payment. 
The amount of any distribution on account of Unforeseeable Emergency
shall not exceed the amount reasonably necessary to satisfy the emergency need
(including the amounts necessary to pay any federal, state or local income
taxes or penalties reasonably anticipated to result from the
distribution).  Determinations of the
amounts reasonably necessary to satisfy the emergency need shall take into
account any additional compensation that is available to the Participant upon
cancellation of the Participant’s Deferral Election (as provided in Section 7(k)(3)).  Payment under this Section 7(k) shall
be made on the tenth (10th)
business day after the Company determines that the Participant has had an
Unforeseeable Emergency.

 

(3)   Revocation
of Deferral Election.  If a Participant receives a distribution on
account of Unforeseeable Emergency (or receives a distribution on account of
hardship or unforeseeable

 

11

 

emergency
under any other plan sponsored by the Company, the terms of which require a
revocation of deferrals under this Plan (including the 401(k) Plan)), any
standing Deferral Election shall be revoked automatically and the Participant
shall not, for the remainder of the Plan Year in which such distribution is
received and the immediately following Plan Year, be entitled to make any
further Deferral Election, nor shall the Company be required to recognize or
implement any such Deferral Election with respect to such Participant.

 

(l) 
Lump Sum Payments.  If a
Participant receives a payment from the Participant’s Accounts in a lump sum,
the amount of payment shall be equal to the value of the Phantom Funds credited
to the Accounts, as determined in good faith by the Company on such date as is
as near as reasonably practicable to the date of payment.

 

(m) 
Installment Payments.  The amount
of an installment payment from a Participant’s Accounts shall equal the product
of (1) the sum of the balance credited to such Accounts, as determined in
good faith by the Company on such date as is as near as reasonably practicable
to the date of payment, and (2) a fraction, the numerator of which is one
and the denominator of which is the total number of installments remaining to
be paid at the time (including the installment about to be paid).

 

(n) 
Delay of Distributions—General. 
Any Plan provision to the contrary notwithstanding, the Company may
delay making a distribution under the Plan, in whole or in part, if (1) the
Company reasonably anticipates that the Company’s tax deduction with respect to
such payment otherwise would be limited or eliminated by application of Code Section 162(m);
provided that such delayed distribution
shall be made at the earliest date at which the Company reasonably anticipates
that the Company’s tax deduction with respect to such payment will not be
limited or eliminated by application of Code Section 162(m), (2) the
Company reasonably anticipates that making the distribution will violate
federal securities laws or other applicable law; provided
that such delayed distribution shall be made at the earliest date at which the
Company reasonably anticipates that making the distribution will not cause such
violation, or (3) such other events or conditions occur to permit the
Company to delay distributions, as may be prescribed pursuant to Code Section 409A.

 

(o)  Delay
of Distributions—Certain Key Employees. 
Any Plan provision
to the contrary notwithstanding and subject to Code Section 409A, payments
to be made to a Specified Employee from the Participant’s 2005-2008 Subaccount
and Post-2008 Subaccount upon a Termination of Employment may not be made
before the date that is six months after the date of the Termination of
Employment (or, if earlier, the date of death of the Specified Employee).  All payments to which the Specified Employee
would otherwise be entitled during such six month period (determined as set
forth in the remainder of this Section 7) shall be accumulated within the
Accounts and Subaccounts in which they are otherwise credited and paid as soon
as practicable after the end of such six month period (and within the same
calendar year as the end of such six month period), in accordance with Section 7(l) or
7(m) (as the case may be) and based on the value of such Accounts and
Subaccounts at the end of such six month period.

 

(p)  Time
for Distributions—Section 409A Provision.  Any Plan provision to the contrary notwithstanding, for purposes of
Code Section 409A, a payment that is to be made upon a

 

12

 

designated date (as set forth in the Plan) shall be made (1) no
earlier than such designated date, and (2) no later than the later of (A) the
first date that it is administratively feasible to make such payment on or
after such designated date or (B) the end of the calendar year containing
such designated date.

 

Section 8.              Change of Control
Provisions

 

(a)  Transfers
from Protective Stock Fund Upon Change of Control.  Upon a Change of Control and for one year
thereafter, a Participant may transfer all or any portion of the balance in the
Protective Stock Fund to any Phantom Fund that was available under the Plan
immediately before the Change of Control. 
The Participant may not transfer any amounts in any Phantom Fund (other
than the Protective Stock Fund) to the Protective Stock Fund.  Stock equivalents in the Protective Stock
Fund that are transferred pursuant to this Section 8(a) shall be
valued at the greatest of (1) the average of the Closing Price of the
Common Stock for the twenty (20) trading days ending on the day preceding the
effective date of such transfer; (2) the average of the Closing Price of
the Common Stock for the twenty (20) trading days ending on the day preceding
the date of the Change of Control; or (3) the highest price per share of
Common Stock in the transaction or series of transactions constituting the
Change of Control.

 

(b)  Valuation of
Distributions from Protective Stock Fund. 
After a Change of Control, all distributions of stock equivalents in the
Protective Stock Fund under the Plan shall be made in cash in an amount equal
to the number of stock equivalents to be distributed multiplied by the greatest
of (1) the average of the Closing Price of the Common Stock for the twenty
(20) trading days ending on the day preceding the date on which the right to
such distribution arose; (2) the average of the Closing Price of the
Common Stock for the twenty (20) trading days ending on the day preceding the
date of the Change of Control; or (3) the highest price per share of
Common Stock in the transaction or series of transactions constituting the
Change of Control.

 

(c)  No Amendment.  This Section 8 may not be amended or
modified in anticipation of or after the occurrence of a Change of Control.

 

Section 9.              Amendment and
Termination

 

Except as provided in Section 8,
the Company may amend, modify, terminate or discontinue the Plan at any time; provided that no such action shall reduce the amounts
credited to a Participant’s Accounts immediately prior to such action, or
change the time, method or manner in which the Participant’s Account is then
being distributed.

 

Section 10.            Miscellaneous

 

(a)  Unfunded
Plan.  The Company shall not be obligated to fund
its liabilities under the Plan, the Accounts established for the Participants
shall not constitute trusts, distributions hereunder shall be made from
the general funds of the Company, and the rights of each

 

13

 

Participant shall be
those of an unsecured general creditor of the Company.  A
Participant’s claim at any time shall be for the amount credited to such
Participant’s Accounts at such time.  No
amount credited to a Participant’s Account shall be set aside or invested in
any actual fund on behalf of such Participant, and neither the
Participant nor any other person shall have any interest in any fund or in any
specific asset of the Company by reason of amounts credited to the Participant’s
Account; provided that
this Section 10(a) shall not preclude the Company from making
investments for its own account (whether directly or through a grantor trust)
to assist it in meeting its obligations hereunder.

 

(b) 
Tax Withholding.  The Company
shall have the right to deduct from all distributions hereunder any taxes
required to be withheld by the federal or any state or local governments.

 

(c)  Non-Alienation.  The interest of a Participant under the Plan
shall not be assignable by the Participant or the Participant’s beneficiary or
legal representative, either by voluntary assignment or by operation of law,
and any assignment of such interest, whether voluntary or by operation of law,
shall be ineffective; provided that (1) a
Participant may designate a beneficiary to receive any benefit payable under
the Plan upon the Participant’s death, and (2) the legal representative of
a Participant’s estate may assign the Participant’s interest under the Plan to
the persons entitled to any benefit payable under the Plan upon the Participant’s
death.

 

(d)  Plan Binding
on Beneficiaries.  The provisions of
the Plan shall apply to and be binding upon the beneficiaries, distributees and
personal representatives and any other successors in interest of the
Participant.

 

(e)  No Guarantee
of Employment.  Nothing contained
herein shall impose any obligation on the Company to continue the tenure of an
Officer beyond the term for which such Officer may have been elected or
appointed, or shall prevent the discipline or discharge of an Officer.

 

(f) 
No Rights as a Shareholder. 
Neither a Participant nor any other person shall have any right to exercise
any of the rights or privileges of a shareholder with respect to any units of
the Protective Stock Fund credited to the Participant’s Accounts.

 

(g)  Adjustments
to Common Stock.  In the event of any
change in the Common Stock by reason of a merger, consolidation,
reorganization, recapitalization, stock dividend, stock split, combination or
exchange of shares, or any other change in corporate structure, the number of
shares credited to the Accounts shall be adjusted in such manner as a majority
of the Board shall determine to be fair under the circumstances; provided that if a Change of Control shall have occurred,
then such determination shall be made by a majority of the Continuing
Directors.

 

(h)  Acceleration
of Payments.  If any amounts deferred
pursuant to the Plan are includable in gross income by a Participant prior to
payment of such amounts (in a “determination” (within the meaning of Code Section 1313(a))
or due to the Plan’s failure to meet the requirements of Code Section 409A),
an amount equal to the amount required to be included in the Participant’s
income shall be immediately paid to such Participant, notwithstanding the
Participant’s elections hereunder.

 

14

 

(i)  Compliance
With Laws and Regulations.  The Plan,
and the obligations of the Company under the Plan, shall be subject to all
applicable federal and state laws, rules and regulations, and to such
approvals by any regulatory or governmental agency as may be required.  The Company, in its discretion, may (1) postpone
the issuance or delivery of Common Stock or any other action permitted under
the Plan to permit the Company, with reasonable diligence, to complete such
stock exchange listing or registration or qualification of such Common Stock or
other required action under any federal or state law, rule or regulation, (2) require
a Participant to make such representations and furnish such information as it
may consider appropriate in connection with the issuance or delivery of Common
Stock in compliance with applicable laws, rules and regulations, and (3) pay
a Participant, in lieu of shares of Common Stock, cash in an amount equal to
the product of (A) the Closing Price of the Common Stock as of the most
recent practicable date before the date of payment, multiplied by (B) the
number of stock equivalents in the Protective Stock Fund in the Participant’s
Account.  The Company shall not be
obligated to sell or issue Common Stock in violation of any such laws, rules or
regulations, and neither the Company nor its directors, officers or employees
shall have any obligation or liability to a Participant with respect to the
Participant’s Account (or Common Stock issuable thereunder) because of any
actions taken pursuant to the provisions of this Section 10(i).

 

(j)  Expense
Reimbursement.  The Company shall
promptly reimburse the Participant for all legal fees and expenses reasonably
incurred in successfully seeking to obtain or enforce any right or benefit
provided under the Plan.

 

(k) 
Immunity from Liability.  Neither
the Company nor any person acting for the Company or the Committee in the
administration of the Plan shall incur any liability for anything done or
omitted to be done in administering the Plan or making any determination
required by the Plan, except in the case of willful misconduct or gross
negligence.

 

(l)  Applicable
Law; Interpretation.  The Plan shall
be interpreted as a plan that is unfunded and is maintained by the Company
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees, within the meaning of ERISA, and
as a plan of deferred compensation under Code Section 409A.  The Plan shall be interpreted by and all
questions arising in connection therewith shall be determined by Committee,
whose interpretation or determination, when made in good faith, shall be
conclusive and binding, unless a Change of Control shall have occurred, in
which case such interpretation or determination shall be made by a majority of
the Continuing Directors.

 

(m)          Restatement and
Amendment.  This document
incorporates into one document all of the provisions of the Plan, as amended
and in effect as of January 1, 2009.

 

[This document is executed on the following page.]

 

15

 

IN
WITNESS WHEREOF, the Company has executed this document as of November 3,
2008.

 

 

	
   

  	
  PROTECTIVE
  LIFE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  :

  	
  /s/

  	
    John D. Johns

  
	
   

  	
   

  	
   

  	
    John D. Johns

  
	
   

  	
  Chairman of the Board, President and

  
	
   

  	
  Chief Executive Officer

  

 

16Exhibit 10.15

 

AMYLIN PHARMACEUTICALS, INC.

AMENDED AND RESTATED

OFFICER CHANGE IN CONTROL

SEVERANCE BENEFIT PLAN

 

SECTION 1.                                                    INTRODUCTION

 

This Amylin Pharmaceuticals, Inc. Amended and Restated Officer
Change in Control Severance Benefit Plan (the “Plan”)
is designed to provide separation pay and benefits to Covered Employees, as
such term is defined below, and hereby amends and restates through November 1,
2008 the Amylin Pharmaceuticals, Inc. Amended and Restated Officer Change
in Control Severance Benefit Plan that was originally established effective February 8,
2001, and last amended and restated on August 6, 2007 (the “Prior Plan”).  This document constitutes the written
instrument under which the Plan is maintained and supersedes any prior plan or
practice of the Company that provides for the payment of severance benefits to
Covered Employees in the form of cash and equity related benefits, including
but not limited to the Prior Plan, except to the extent Covered Employees are
parties to written agreements with the Company that expressly contemplate that
such persons are also eligible to participate in the Plan.  .

 

SECTION 2.                                                    DEFINITIONS

 

For purposes of this Plan, the following terms shall have the meanings
set forth below:

 

(a)                                  “Affiliate”
means any corporation (other than the Company) in an “unbroken chain of
corporations” beginning with the Company, if each of the corporations other
then the last corporation in the unbroken chain owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

 

(b)                                  “Board”
means the Board of Directors of the Company

 

(c)                                  “Cause”
means, with respect to a Covered Employee, that, in the reasonable
determination of the Company, such Covered Employee has (i) been convicted
of or pleaded guilty or nolo contendere
to a felony or any crime involving moral turpitude or dishonesty; (ii) participated
in a fraud or act of dishonesty against the Company; (iii) willfully and
materially breached a Company policy; (iv) intentionally damaged the
Company’s property; (v) willfully and materially breached such Covered
Employee’s Proprietary Information and Inventions Agreement with the Company; (vi) engaged
in conduct that demonstrates gross unfitness to serve; or (vii) repeatedly
failed to satisfactorily perform job duties to which such Covered Employee
previously agreed in writing. The conduct described under clauses (iii), (vi) and
(vii) above will only constitute Cause if such conduct is not cured within
90 days after the Covered Employee’s receipt of written notice from the Company
or the Board specifying the particulars of the conduct that may constitute
Cause.

 

(d)                                  “Change
in Control” means the occurrence of any of the following:

 

(i)                                    any
“person,” as such term is used in Sections 13(d) and 14(d) of the
Securities and Exchange Act of 1934, as amended from time to time, and any
successor statute

 

 

(the “Exchange
Act”) (other than the Company, a subsidiary, an Affiliate, or a Company
employee benefit plan, including any trustee of such plan acting as trustee) is
or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company’s then
outstanding securities other than by virtue of a merger, consolidation or
similar transaction;

 

(ii)                                there
is consummated a sale or other disposition of all or substantially all of the
assets of the Company (other than a sale to an entity where at least 50% of the
combined voting power of the voting securities of such entity are owned by the
stockholders of the Company in substantially the same proportions as their
ownership of the Company immediately prior to such sale);

 

(iii)                            there
is consummated a merger, consolidation or similar transaction involving
(directly or indirectly) the Company and, immediately after the consummation of
such transaction, the stockholders immediately prior to the consummation of
such transaction do not own, directly or indirectly, outstanding voting
securities representing more than 50% of the combined outstanding voting power
of the surviving entity in such transaction or more than 50% of the combined
outstanding voting power of the parent of the surviving entity in such
transaction.

 

(e)                                  “Company”
means Amylin Pharmaceuticals, Inc., a Delaware corporation and its
Affiliates, or following a Change in Control, the surviving entity resulting
from such transaction.

 

(f)                                    “Compensation
Committee” means the Compensation Committee of the Board.

 

(g)                                 “Constructive
Termination” means, with respect to a Covered Employee, that such Covered
Employee voluntarily terminates his or her employment with the Company (A) after
(1) any of the following are undertaken without Cause and without such
Covered Employee’s express written consent; (2) the Covered Employee
notifies the Company in writing, within ninety (90) days after the occurrence
of one of the following events, which notice specifies the condition giving
rise to a Constructive Termination and that the Covered Employee intends to
terminate his employment no earlier than thirty (30) days after the Company’s
receipt of such notice; and (3) the Company does not cure such condition
within thirty (30) days following its receipt of such notice or states
unequivocally in writing that it does not intend to attempt to cure such
condition; and (B) such voluntary termination occurs within thirty (30)
days following the end of the period within which the Company was entitled to
remedy the condition giving rise to a Constructive Termination but failed to do
so:

 

(i)                                    a
material reduction by the Company of such Covered Employee’s annual base salary
as in effect during the last regularly scheduled payroll period immediately
prior to the period commencing 90 days prior to the applicable Change in
Control (or as increased thereafter), unless such reduction is made pursuant to
an across-the-board reduction of the base salaries of all similarly situated
Covered Employee’s of no more than ten percent (10%);

 

(ii)                                such
Covered Employee’s relocation, or the relocation of the Company’s principal
executive offices if such Covered Employee’s principal office is at such
offices by

 

2

 

more than
fifty (50) miles from the location at which such Covered Employee was
performing his or her duties immediately prior to the 90 day period preceding
the applicable Change in Control, except for required travel on the Company’s
business to an extent substantially consistent with such Covered Employee’s
business travel obligations immediately prior to the commencement of such
period;

 

(iii)                            such
Covered Employee’s assignment during the period beginning ninety (90) days
prior to and ending thirteen (13) months after the applicable Change in Control
of any duties or responsibilities that results in a material diminution in such
Covered Employee’s authority, duties or responsibilities from those in effect
immediately prior to the commencement of such period; provided, however, that
with respect only to those Covered Employees serving as the Chief Executive
Officer and/or Chief Financial Officer of the Company immediately prior to the
commencement of such period (each a “Key
Executive”), if (i) in the case of the Key Executive so
serving as Chief Executive Officer (the “CEO”),
such Key Executive shall no longer report during such period directly to the
Board of Directors of the Company or, following such Change in Control, shall
not report directly to the board of directors of the publicly traded entity
that is, or is part of the controlled group that includes, the successor or
acquiring party in such Change in Control or (ii) in the case of the Key
Executive so serving as Chief Financial Officer, there shall be a material
diminution in the authority, duties or responsibilities of the supervisor to
whom such Key Executive is required to report (including without limitation by
reason of such Key Executive continuing to report to the CEO during such period
but the CEO at any time during such period no longer reporting directly to the
Board of Directors of the Company or, following such Change in Control, not
reporting directly to the board of directors of the publicly traded entity that
is, or is part of the controlled group that includes, the successor or
acquiring party in such Change in Control) and/or a requirement that either
such Key Executive or his or her supervisor shall report to a corporate officer
or employee instead of reporting directly to the CEO), then, without
limitation, in each case such Key Executive shall be considered to have
suffered a material diminution in such Key Executive’s authority, duties or
responsibilities; or

 

(iv)                               a
material breach by the Company of any provision of this Plan or any enforceable
written agreement between such Covered Employee and the Company.

 

(h)                                 “Covered
Employee” means a person eligible to participate in the Plan as provided in
Section 3 herein.

 

(i)                                    “Covered
Termination” means either a Constructive Termination or an Involuntary
Termination Without Cause.

 

(j)                                    “Disability”
means the Covered Employee is prevented from performing his duties
hereunder by reason of any physical or mental incapacity that results in the
Covered Employee’s satisfaction of all requirements necessary to receive
benefits under the Company’s long-term disability plan due to a total
disability.

 

(k)                                “Executive
Officer” means an officer who has been designated by the Company as an
executive officer who is subject to Section 16 of the Securities Exchange
Act of 1934.

 

3

 

(l)                                    “Involuntary
Termination Without Cause” means with respect to a Covered Employee such
Covered Employee’s dismissal or discharge by the Company for a reason other
than for Cause.  The termination of a
Covered Employee’s employment will not be deemed to be an “Involuntary
Termination Without Cause” if such Covered Employee’s termination occurs as a
result of such Covered Employee’s death or Disability.

 

(m)                              “Payment
Commencement Date” means, with respect to a Covered Termination, (i) if
such Covered Termination occurs prior to the effective date of the applicable
Change in Control, the later of (A) the effective date of such Change in
Control or (B) the effective date of the Release required by Section 4(e) or
(ii) if such Covered Termination occurs on or after the effective date of
the applicable Change in Control, the later of (X) the date of such
Covered Termination or (Y) the effective date of the Release required by Section 4(e).

 

(n)                                 “Plan Administrator” has the meaning as provided in Section 7.

 

(o)                                  “Qualified Plan” means a plan sponsored by the Company or an
Affiliate that is intended to be qualified under Section 401(a) of
the Internal Revenue Code.

 

(p)                                  “Substantial
Risk of Forfeiture Lapse Date” means, with respect to a Covered
Termination, (i) if such Covered Termination occurs prior to the effective
date of the applicable Change in Control, the effective date of such Change in
Control, or (ii) if such Covered Termination occurs on or after the
effective date of the applicable Change in Control, the date of such Covered
Termination.

 

SECTION 3.                                                    ELIGIBILITY AND PARTICIPATION

 

A person is eligible to participate in the Plan if (i) such person
is an employee of the Company or an Affiliate with the title of Vice-President
or higher; (ii) such person has not entered into a separate individual “severance
benefit” or “change in control agreement” with the Company (excluding any plan
or arrangement, or any portion thereof, relating to equity compensation) except
to the extent such person is a party to a written agreement with the Company
that expressly contemplates that such person is also eligible to participate in
the Plan; (iii) the Board has designated such person as eligible to
participate in the Plan; and (iv) such person’s employment with the
Company terminates due to either (A) an Involuntary Termination at any
time during the period beginning ninety (90) days prior to and ending thirteen
(13) months following the effective date of a Change in Control, or (B) a
Constructive Termination for which the condition set forth in Section 2(g)(i)-(iv),
as applicable, giving rise to the right to resign due to a Constructive
Termination occurred at any time during the period beginning ninety (90) days
prior to and ending thirteen (13) months following the effective date of a
Change in Control.  The determination of
whether an employee is a Covered Employee shall be made by the Company, in its
sole discretion, and such determination shall be binding and conclusive on all
persons.

 

SECTION 4.                                                    BENEFITS

 

Plan benefits will not affect a Covered Employee’s rights to payment of
any other compensation from the Company that has been earned by the Covered
Employee but has not yet been paid at the time of the Covered Termination.  Provided that all conditions for receiving
benefits under

 

4

 

the Plan are met, each Covered Employee is eligible to receive the
following benefits:

 

(a)                                  Salary
Continuation Payments.  The Company
shall continue to pay the Base Salary of each Covered Employee, as in effect on
the date of the applicable Covered Termination, for the number of months
following the Payment Commencement Date set forth in the following table based
on the most senior employment title of such Covered Employee in effect at the
time of such Covered Termination:

 

	
  Title

  	
   

  	
  Base Salary

  Continuation Period

  	
   

  
	
  Chief Executive Officer or President

  	
   

  	
  36 months

  	
   

  
	
  Executive Officer

  	
   

  	
  24 months

  	
   

  
	
  Vice President other than Executive Officer

  	
   

  	
  18 months

  	
   

  

 

Such amounts shall be paid to each such
Covered Employee in regular installments on the normal payroll dates of the
Company commencing with the first payroll period following the Payment
Commencement Date.  Any salary
continuation payments that any Covered Employee receives hereunder shall be
subject to all required tax withholding.

 

“Base Salary”
shall mean the Covered Employee’s base pay (excluding incentive pay, premium
pay, commissions, overtime, bonuses and other forms of variable compensation),
at the rate in effect during the last regularly scheduled payroll period
immediately preceding the date of the Covered Termination, and prior to any
reduction in base salary that would permit such Covered Employee to voluntarily
terminate employment in a Constructive Termination pursuant to Section 2(g)(i).

 

(b)                                  Bonus
Payment.  The Company shall pay to
each Covered Employee a percentage of such Covered Employee’s Maximum Potential
Bonus (defined below) as set forth in the following table based on the most
senior employment title of such Covered Employee in effect at the time of the
applicable Covered Termination:

 

5

 

	
  Title

  	
   

  	
  Percentage of

  Maximum Bonus Potential

  	
   

  
	
  Chief Executive Officer or President

  	
   

  	
  300

  	
  %

  
	
  Executive Officer

  	
   

  	
  200

  	
  %

  
	
  Vice President other than Executive Officer

  	
   

  	
  100

  	
  %

  

 

“Maximum Potential Bonus”
means:

 

(i) if,
on or prior to the date of the Covered Termination, the Compensation Committee
shall have approved an Executive Cash Bonus Plan or similar plan applicable to
such Covered Employee and related Company and/or Covered Employee individual
performance goals thereunder (collectively, “Cash Bonus
Plan”) applicable for the year in which such Covered Termination
occurs, the maximum full year cash bonus payable to such Covered Employee under
such Cash Bonus Plan as if 100% of all such performance goals were attained for
such year;

 

(ii) if,
on or prior to the date of the Covered Termination, the Compensation Committee
shall not have approved a Cash Bonus Plan applicable to such Covered Employee
for the year in which such Covered Termination occurs, but a Cash Bonus Plan
applicable to such Covered Employee exists for the year immediately preceding
the year in which such Covered Termination occurs, the maximum full year cash
bonus payable to such Covered Employee under the Cash Bonus Plan in effect for
such immediately preceding year as if 100% of all applicable performance goals
were attained; or

 

(iii) if,
on or prior to the date of the Covered Termination, the Compensation Committee
shall not have approved a Cash Bonus Plan applicable to such Covered Employee
for either the year in which such Covered Termination occurs or the immediately
preceding year, the largest maximum full year cash bonus payable to any other
Company officer with an employment title equivalent to or below the employment
title of such Covered Employee as of the date of the Covered Termination, under
either a Cash Bonus Plan in effect for the year of such Covered Termination or
the immediately preceding the year as if 100% of all applicable performance
goals were attained.

 

Any such bonus payment pursuant to this Section 4(b) shall
be in a single lump sum to be paid within ten (10) days following the
Payment Commencement Date.  Any bonus
payments that any Covered Employee receives shall be subject to all required
tax withholding.

 

(c)                                  COBRA
Premium Benefits.  If a Covered
Employee is eligible to elect continued group health plan coverage under
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”)
following a Covered Termination, regardless of whether the Covered Employee
makes an election for continued COBRA coverage, the Company shall pay a single

 

6

 

lump sum payment
equal to 140% of the full amount of the Covered Employee’s COBRA premiums for
the Covered Employee’s continued coverage under the Company’s group health
plans, including the cost of coverage for the Covered Employee’s eligible
dependents, for a period of eighteen (18) months.  For purposes of this Section 4(c),
references to COBRA premiums shall not include any amounts payable by the
Covered Employee under an Internal Revenue Code Section 125 health care
reimbursement plan.  Any such payment
that such Covered Employee receives shall be subject to all required tax
withholding and shall be paid in a single lump sum within ten (10) days
following the Payment Commencement Date.

 

(d)                                  Equity
Award Vesting Acceleration Benefits. 
Effective as of the date of the Covered Employee’s Covered Termination: (i) the
vesting and exercisability of all outstanding options to purchase the Company’s
common stock that are held by the Covered Employee on such date shall be
accelerated in full as of the date of such Covered Termination, (ii) any
reacquisition or repurchase rights held by the Company in respect of common
stock issued pursuant to any other stock award granted to the Covered Employee
by the Company shall lapse in full as of the date of such Covered Termination,
and (iii) the vesting of any other stock awards granted to the Covered
Employee by the Company, and any issuance of shares triggered by the vesting of
such stock awards, shall be accelerated in full as of the date of such
Covered  Termination.   If the Covered Termination occurs prior to
the effective date of the applicable Change in Control, such vesting
acceleration shall be deemed effective as of the date of the Covered
Termination.  Notwithstanding the
foregoing, this Section 4(d) shall not apply to stock awards issued
under or held in any Qualified Plan.

 

(e)                                  Conditions
to Receipt of Benefits.   In order to
be eligible to receive any benefits under the Plan, a Covered Employee also
must satisfy each of the following conditions:

 

(i)                                    The
Covered Employee or his or her representative must execute a general waiver and
release of claims in  substantially the
form attached hereto as Exhibit A, Exhibit B or Exhibit C, as
appropriate (the “Release”), within the time
period set forth therein, but in no event later than (i) if a Change in
Control shall have occurred prior to such Covered Termination, forty-five (45)
days following termination of employment or (ii) if a Change in Control
shall not have occurred prior to such Covered Termination, the later of (A) forty-five
(45) days following termination of employment or (B) ten (10) days
following the effective date of such Change in Control, and such release must
become effective in accordance with its terms. 
The Company, in its discretion, may modify the form of the required
Release at any time to comply with applicable law and shall determine the form
of the required Release, which may be incorporated into a termination agreement
or other agreement with the Covered Employee.

 

(ii)                                Following
any notification of Involuntary Termination Without Cause by the Company, the
Covered Employee must reasonably satisfactorily perform his or her assigned job
duties until the date set by the Company for the termination of employment,
which date may not exceed thirty (30) days following such notification.

 

(f)                                    Termination
of Benefits.  With respect to each
Covered Employee, benefits under this Plan shall terminate immediately if such
Covered Employee, at any time, violates any provision of the Proprietary
Information and Inventions Agreement or any other proprietary information,
confidentiality or non-solicitation obligation to the Company.

 

7

 

(g)                                 Non-Duplication
of Benefits.  No Covered Employee is
eligible to receive benefits under this Plan more than one time.

 

(h)                                 Offset
for Indebtedness.  If a Covered
Employee is indebted to the Company at his or her termination date, the Company
reserves the right to offset any salary continuation severance payments or
other payments under the Plan by the amount of such indebtedness.  Additionally, if a Covered Employee is
subject to withholding for taxes related to any non-Plan benefits, the Company
may offset any salary continuation severance payments or other payments under
the Plan by the amount of such withholding taxes.

 

(i)                                    Certain
Reductions.  The Company, in its sole
discretion, shall have the authority to reduce a Covered Employee’s benefits
under this Plan, in whole or in part, by any other severance benefits, pay in
lieu of notice, or other similar benefits payable to the Covered Employee by
the Company or an Affiliate of the Company that become payable in connection
with the Covered Employee’s termination of employment pursuant to any
applicable legal requirement, including, without limitation, the Worker
Adjustment and Retraining Notification Act, the California Plant Closing Act,
or any other similar state law, and the Plan Administrator shall so construe
and implement the terms of the Plan; provided, however, that notwithstanding
the foregoing and any other provision in the Plan to the contrary, such
reductions shall in no event reduce the cash severance benefits provided under
this Plan to less than two (2) weeks of Base Salary (as such term is
defined above).  The Company’s decision
to apply such reductions to any particular Covered Employee and the amount of
such reductions shall in no way obligate the Company to apply the same
reductions in the same amounts to any other Covered Employee, even if similarly
situated.  In the Company’s sole
discretion, such reductions may be applied on a retroactive basis, with salary
continuation severance payments or other severance benefits previously paid being
re-characterized as payments pursuant to the Company’s statutory obligation.

 

(j)                                    Deferred
Compensation.  Notwithstanding
anything to the contrary set forth herein, any payments and benefits provided
under this Plan (the “Severance Benefits”)
that constitute “deferred compensation” within the meaning of Section 409A
of the Code and the regulations and other guidance thereunder and any state law
of similar effect (collectively “Section 409A”)
shall not commence in connection with a Covered Employee’s termination of
employment unless and until the Covered Employee has also incurred a “separation
from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h) (“Separation From Service”), unless
the Company reasonably determines that such amounts may be provided to the
Covered Employee without causing the Covered Employee to incur the additional
20% tax under Section 409A. 
Severance Benefits payable under the Plan on or before March 15 of
the calendar year following the calendar year including the Substantial Risk of
Forfeiture Lapse Date are intended to constitute separate payments for purposes
of Section 1.409A-2(b)(2) of the Treasury Regulations and thus will
be payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of
the Treasury Regulations.  Severance
Benefits payable under the Plan after March 15 of the calendar year
following the calendar year including the Substantial Risk of Forfeiture Lapse
Date are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of
the Treasury Regulations made upon an involuntary termination from service and
payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury
Regulations, to the maximum extent permitted by said provision, with any excess
amount being regarded as subject

 

8

 

to the
distribution requirements of Section 409A(a)(2)(A) of the Internal
Revenue Code of 1986, as amended (the “Code”),
including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of
the Code that payment to the Covered Employee be delayed until 6 months after
separation from service if the Covered Employee is a “specified employee”
within the meaning of the aforesaid section of the Code at the time of such
separation from service.

 

SECTION 5.                                                    PARACHUTE PAYMENTS

 

In the event that the payments provided
herein and benefits otherwise payable to a Covered Employee (i) constitute
“parachute payments” within the meaning of Section 280G of the Code, or
any comparable successor provisions, and (ii) but for this Section 5
would be subject to the excise tax imposed by Section 4999 of the Code, or
any comparable successor provisions (the “Excise Tax”),
then such Covered Employee’s benefits hereunder shall be either:

 

(i)                                    provided
to such Covered Employee in full, or

 

(ii)                                provided
to such Covered Employee as to such lesser extent which would result in no
portion of such benefits being subject to the Excise Tax,

 

whichever of the foregoing amounts, when taking into account applicable
federal, state, local and foreign income and employment taxes, the Excise Tax,
and any other applicable taxes, results in the receipt by such Covered
Employee, on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such benefits may be taxable under
the Excise Tax (the “Reduced Amount”).  If a reduction in payments or benefits
constituting “parachute payments” is necessary so that the Payment equals the
Reduced Amount, reduction shall occur in the following order:  reduction of cash payments; cancellation of
accelerated vesting of stock awards; reduction of employee benefits.  If acceleration of vesting of stock award compensation
is to be reduced, such acceleration of vesting shall be cancelled in the
reverse order of the date of grant of the Covered Employee’s stock awards.

 

Unless the Company and such Covered Employee otherwise agree in
writing, any determination required under this Section 5 shall be made in
writing in good faith by the Company’s independent certified public accountants
(the “Accountants”).  For purposes of making the calculations
required by this Section 5, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of the Code,
and other applicable legal authority. 
The Company and such Covered Employee shall furnish to the Accountants
such information and documents as the Accountants may reasonably request in order
to make a determination under this Section 5.  The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations
contemplated by this Section 5.

 

If, notwithstanding any reduction described
in this Section 5, the IRS determines that such Covered Employee is liable
for the Excise Tax as a result of the receipt of the payment of benefits as
described above, then such Covered Employee shall be obligated to pay back to
the Company, within thirty (30) days after a final IRS determination or in the
event that such Covered Employee challenges the final IRS determination, a final
judicial determination, a 

 

9

 

portion of the payment equal to the “Repayment
Amount.”  The Repayment
Amount with respect to the payment of benefits shall be the smallest such
amount, if any, as shall be required to be paid to the Company so that such
Covered Employee’s net after-tax proceeds with respect to any payment of
benefits (after taking into account the payment of the Excise Tax and all other
applicable taxes imposed on such payment) shall be maximized.  The Repayment Amount with respect to the
payment of benefits shall be zero if a Repayment Amount of more than zero would
not result in such Covered Employee’s net after-tax proceeds with respect to
the payment of such benefits being maximized. 
If the Excise Tax is not eliminated pursuant to this paragraph, such
Covered Employee shall pay the Excise Tax.

 

Notwithstanding any other provision of this Section 5,
if (i) there is a reduction in the payment of benefits as described in
this Section 5, (ii) the IRS later determines that such Covered
Employee is liable for the Excise Tax, the payment of which would result in the
maximization of such Covered Employee’s net after-tax proceeds (calculated as
if such Covered Employee’s benefits had not previously been reduced), and (iii) such
Covered Employee pays the Excise Tax, then the Company shall pay to such
Covered Employee those benefits which were reduced pursuant to this Section 5
contemporaneously or as soon as administratively possible after such Covered
Employee pays the Excise Tax so that such Covered Employee’s net after-tax
proceeds with respect to the payment of benefits is maximized.

 

If a Covered
Employee either (i) brings any action to enforce such Covered Employee’s
rights pursuant to this Section 5, or (ii) defends any legal
challenge to such Covered Employee’s rights hereunder, such Covered Employee
shall be entitled to recover attorneys’ fees and costs incurred in connection
with such action, regardless of the outcome of such action; provided, however,
that in the event such action is commenced by such Covered Employee, the court
finds the claim was brought in good faith.

 

SECTION 6.                                                    COMPANY PROPERTY.

 

A Covered
Employee will not be entitled to any benefit under the Plan unless and until
the Covered Employee returns all Company Property, except to the extent such
obligation is waived in writing by the Company. 
For this purpose, “Company Property”
means all Company and/or Affiliate documents (and all copies thereof) and other
Company and/or Affiliate property which the Covered Employee had in his or her
possession at any time, including, but not limited to, Company and/or Affiliate
files, notes, drawings records, plans, forecasts, reports, studies, analyses,
proposals, agreements, financial information, research and development
information, sales and marketing information, operational and personnel
information, specifications, code, software, databases, computer-recorded
information, tangible property and equipment (including, but not limited to,
leased vehicles, computers, facsimile machines, mobile telephones, servers),
credit cards, entry cards, identification badges and keys; and any materials of
any kind which contain or embody any proprietary or confidential information of
the Company and/or an Affiliate (and all reproductions thereof in whole or in
part).  As a condition to receiving
benefits under the Plan, Covered Employees must not make or retain copies,
reproductions or summaries of any such Company or Affiliate property.

 

10

 

SECTION 7.                                                    ADMINISTRATION AND OPERATION OF THE PLAN

 

The Company is the “Plan Sponsor”
and the “Plan Administrator” of the
Plan, as such terms are defined in the Employee Retirement Income Security Act
of 1974 (“ERISA”).  The Company, in its capacity as Plan
Administrator of the Plan, is the named fiduciary that has the authority to
control and manage the operation and administration of the Plan.  The Company has the sole discretion to make
such rules, regulations, interpretations of the Plan and computations and shall
take such other action to administer the Plan as it may deem appropriate in its
sole discretion.  Such rules,
regulations, interpretations, computations, and other actions shall be
conclusive and binding upon all persons. 
The Company may engage the services of such persons or organizations to
render advice or perform services with respect to its responsibilities under
the Plan as it shall determine to be necessary or appropriate.  Such persons or organizations may include
(without limitation) actuaries, attorneys, accountants and consultants.

 

Any person or group of persons may serve in more than one fiduciary
capacity with respect to the Plan.  The
responsibilities of the Company under the Plan shall be carried out on its
behalf by its directors, officers, employees and agents, acting on behalf or in
the name of the Company in their capacity as directors, officers, employees and
agents and not as individual fiduciaries. 
The Company may delegate any of its fiduciary responsibilities under the
Plan to another person or persons pursuant to a written instrument that
specifies the fiduciary responsibilities so delegated to each such person.

 

The Company may also delegate the administration of some or all of the
provisions of the Plan to a committee or committees consisting of one or more
persons appointed by the Company (“Committee”).  If administration of the Plan is delegated to
a Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Company that have been
delegated to the Committee, including the power to delegate to a subcommittee
of the Committee any of the administrative powers the Committee is authorized
to exercise (and references in this Plan to the Company shall thereafter be to
the Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Company.

 

SECTION 8.                                                    CLAIMS, INQUIRIES AND APPEALS

 

(a)                                  Applications
for Benefits and Inquiries.  Any
application for benefits, inquiries about the Plan or inquiries about present
or future rights under the Plan must be submitted to the Plan Administrator in
writing by an applicant (or his or her authorized representative) to:

 

Attention: Corporate Secretary

Re: Officer Change in Control Severance
Benefit Plan

Amylin Pharmaceuticals, Inc.

9360 Towne Centre Drive

San Diego, California 92121

 

(b)                                  Denial
of Claims.  In the event that any
application for benefits is denied in whole or in part, the Plan Administrator
must provide the applicant with written or electronic notice of the denial of
the application, and of the applicant’s right to review the denial.  Any 

 

11

 

electronic
notice will comply with the regulations of the U.S. Department of Labor.  The written notice of denial will be set
forth in a manner designed to be understood by the employee and will include
the following:

 

(i)                                    the
specific reason or reasons for the denial;

 

(ii)                                references
to the specific Plan provisions upon which the denial is based;

 

(iii)                            a
description of any additional information or material that the Plan
Administrator needs to complete the review and an explanation of why such
information or material is necessary; and

 

(iv)                               an
explanation of the Plan’s review procedures and the time limits applicable to
such procedures, including a statement of the applicant’s right to bring a
civil action under section 502(a) of ERISA following a denial on review of
the claim, as described in Section 8(d) below.

 

This written notice will be given to the
applicant within ninety (90) days after the Plan Administrator receives the
application, unless special circumstances require an extension of time, in
which case, the Plan Administrator has up to an additional ninety (90) days for
processing the application.  If an
extension of time for processing is required, written notice of the extension
will be furnished to the applicant before the end of the initial ninety (90)
day period.

 

This notice of extension
will describe the special circumstances necessitating the additional time and
the date by which the Plan Administrator is to render its decision on the
application.

 

(c)                                  Request
for a Review.  Any person (or that
person’s authorized representative) for whom an application for benefits is
denied, in whole or in part, may appeal the denial by submitting a request for
a review to the Plan’s Review Panel within sixty (60) days after the
application is denied.  The Review Panel
shall be comprised of two (2) or more persons to be appointed by the
Company.  A request for a review shall be
in writing and shall be addressed to:

 

Attention: Corporate Secretary

Re: Officer Change in Control Severance
Benefit Plan

Amylin Pharmaceuticals, Inc.

9360 Towne Centre Drive

San Diego, California 92121

 

A request for review must set forth all of
the grounds on which it is based, all facts in support of the request and any
other matters that the applicant feels are pertinent.  The applicant (or his or her representative)
shall have the opportunity to submit (or the Review Panel) may require the
applicant to submit) written comments, documents, records, and other
information relating to his or her claim. 
The applicant (or his or her representative) shall be provided, upon
request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant to his or her claim.  The review shall take into account all
comments, documents, records and other information submitted by the applicant
(or his or her

 

12

 

representative) relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination.

 

(d)                                  Decision
on Review.  The Review Panel will act
on each request for review within sixty (60) days after receipt of the request,
unless special circumstances require an extension of time (not to exceed an
additional sixty (60) days), for processing the request for a review.  If an extension for review is required,
written notice of the extension will be furnished to the applicant within the
initial sixty (60) day period.  This
notice of extension will describe the special circumstances necessitating the
additional time and the date by which the Plan Administrator is to render its
decision on the review.  The Review Panel
will give prompt, written or electronic notice of its decision to the
applicant. Any electronic notice will comply with the regulations of the U.S.
Department of Labor.  In the event that
the Review Panel confirms the denial of the application for benefits in whole or
in part, the notice will set forth, in a manner calculated to be understood by
the applicant, the following:

 

(i)                                    the
specific reason or reasons for the denial;

 

(ii)                                references
to the specific Plan provisions upon which the denial is based;

 

(iii)                            a
statement that the applicant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant to his or her claim; and

 

(iv)                               a
statement of the applicant’s right to bring a civil action under section 502(a) of
ERISA.

 

(e)                                  Rules and
Procedures.  The Plan Administrator
and/or the Review Panel may establish rules and procedures, consistent
with the Plan and with ERISA, as necessary and appropriate in carrying out its
responsibilities in reviewing benefit claims. 
The Review Panel may require an applicant who wishes to submit
additional information in connection with an appeal from the denial of benefits
to do so at the applicant’s own expense.

 

(f)                                    Exhaustion
of Remedies.  No legal action for
benefits under the Plan may be brought until the claimant (i) has
submitted a written application for benefits in accordance with the procedures
described by Section 8(a) above, (ii) has been notified by the
Plan Administrator that the application is denied, (iii) has filed a
written request for a review of the application in accordance with the appeal
procedure described in Section 8(c) above, and (iv) has been
notified in writing that the Plan Administrator has denied the appeal.  Notwithstanding the foregoing, if the Plan
Administrator and/or Review Panel, as the case may be, does not respond to a
Participant’s claim or appeal within the relevant time limits specified in this
Section 8, the Participant may bring legal action for benefits under the
Plan pursuant to Section 502(a) of ERISA.

 

SECTION 9.                                                    OTHER TERMINATIONS

 

A Covered Employee is not
eligible for benefits under this Plan if (i) such Covered Employee is
terminated within thirty (30) days following such Covered Employee’s refusal to
accept an offer of comparable employment by any successor to the Company or an
Affiliate

 

13

 

thereof (provided that “comparable
employment” shall mean employment with base salary in an amount not violative
of Section 2(g)(i) and at a business office whose location is not
violative of Section 2(g)(ii)); (ii) such Covered Employee is
terminated following such Covered Employee’s refusal to allow any successor to
or Affiliate of the Company access to such Covered Employee’s employment
records or access to Company personnel regarding such Covered Employee’s
performance for the purpose of evaluating such Covered Employee’s
qualifications for future employment, (iii) the Covered Employee
terminates employment in order to accept employment with another entity that is
wholly or partly owned (directly or indirectly) by the Company or an Affiliate,
(iv) the Covered Employee does not satisfy each of the conditions for
receipt of benefits as set forth in Section 4(e) of this Plan, or (v) such
Covered Employee’s employment terminates due to death, Disability or any other
reason other than (A) an Involuntary Termination occurring at any time
during the period beginning ninety (90) days prior to and ending thirteen (13)
months following the effective date of a Change in Control, or (B) a
Constructive Termination for which the condition set forth in Section 2(g)(i)-(iv),
as applicable, giving rise to the right to resign due to a Constructive
Termination occurred at any time during the period beginning ninety (90) days
prior to and ending thirteen (13) months following the effective date of a
Change in Control.

 

SECTION 10.                                             BASIS OF PAYMENTS TO AND FROM THE PLAN

 

All benefits under the Plan shall be paid by the Company.  The Plan shall be unfunded and benefits
hereunder shall be paid only from the general assets of the Company.  A Covered Employee’s right to receive
payments under the Plan is no greater than that of the Company’s unsecured
general creditors.  Therefore, if the
Company were to become insolvent, the Covered Employee might not receive
benefits under the Plan.

 

SECTION 11.                                             AMENDMENT AND TERMINATION

 

The current term of the Plan shall continue through December 31,
2009.  This Plan shall thereafter remain
in effect for successive two-year periods beginning January 1, 2010 unless
and until the Board elects that the then-current two-year period shall be the
final effective period for this Plan by a duly adopted resolution effected at
least 90 days prior to the expiration of that two-year period.  Subject to the foregoing provision, the
Company reserves the right to amend or terminate this Plan at any time; provided, however, that the Plan may not be amended or
terminated within 90 days prior to or at any time following the occurrence of a
Change in Control.

 

SECTION 12.                                             NON-ALIENATION OF BENEFITS

 

No Plan benefit may be anticipated, alienated, sold, transferred,
assigned, pledged, encumbered or charged, and any attempt to do so will be
void.

 

SECTION 13.                                             SUCCESSORS AND ASSIGNS

 

(i)                                    This
Plan shall be binding upon any surviving entity resulting from a Change in
Control and upon any other person who is a successor by merger, acquisition,
consolidation or otherwise to the business formerly carried on by the Company
without regard to whether or not such person actively adopts or formally
continues the Plan.  Covered Employees,

 

14

 

 

to the extent
they are otherwise eligible for benefits under the Plan, are intended third
party beneficiaries of this provision. The Company shall require the assumption
of this Plan by any successor or assign of the Company

 

SECTION 14.                                             LEGAL CONSTRUCTION

 

This Plan shall be interpreted in accordance with ERISA and, to the
extent not preempted by ERISA, with the laws of the State of California.  This Plan constitutes both a plan document
and a summary plan description for purposes of ERISA.

 

SECTION 15.                                             OTHER PLAN INFORMATION

 

(a)           Employer
Identification Number:   33-026609

 

(b)           Ending of
the Plan’s Fiscal Year:  December 31.

 

(c)           Agent for the Service of Legal
Process:  The
Plan’s agent for service of legal process is: 
General Counsel, Amylin Pharmaceuticals, Inc., 9360 Towne Centre
Drive, San Diego, CA 92121.

 

(d)           Type of Plan:  The Plan is a
welfare benefit plan.

 

(e)           Plan Number:  The Plan Number
assigned to the Plan by the Plan Sponsor pursuant to the instructions of the
Internal Revenue Service is 511.

 

(f)            Address for Plan Sponsor and Plan
Administrator.  The
contact information for the Plan Sponsor and the Plan Administrator of the Plan
is:

 

Amylin Pharmaceuticals, Inc.

Attention: Corporate Secretary

9360 Towne Centre Drive

San Diego, California 92121

 

SECTION 16.                                             STATEMENT OF ERISA RIGHTS

 

The terms “you” and “your” shall apply to each Covered Employee, as
applicable.  As a participant in this
Plan (which is a welfare benefit plan sponsored by the Company) you are
entitled to certain rights and protections under ERISA, including the right to:

 

(a)           Examine,
without charge, at the Plan Administrator’s office and at other specified
locations, such as work sites, all Plan documents and copies of all documents
filed by the Plan with the U.S. Department of Labor, such as detailed annual
reports;

 

(b)           Obtain
copies of all Plan documents and Plan information upon written request to the
Plan Administrator.  The Plan
Administrator may make a reasonable charge for the copies; and

 

15

 

(c)           Receive a
summary of the Plan’s annual financial report, in the case of a plan which is
required to file an annual financial report with the Department of Labor.

 

In addition to creating rights for Plan participants, ERISA imposes
duties upon the people responsible for the operation of the employee benefit
plan.  The people who operate the Plan,
called “fiduciaries” of the Plan, have a duty to do so prudently and in the
interest of you and other Plan participants and beneficiaries.

 

No one, including your employer or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from obtaining a
Plan benefit or exercising your rights under ERISA.  If your claim for a Plan benefit is denied in
whole or in part, you must receive a written explanation of the reason for the
denial.  You have the right to have the
Plan Administrator review and reconsider your claim.

 

Under ERISA, there are steps you can take to enforce the above
rights.  For instance, if you request
materials from the Plan Administrator and do not receive them within
30 days, you may file suit in a federal court.  In such a case, the court may require the
Plan Administrator to provide the materials and pay you up to $100 a day until
you receive the materials, unless the materials were not sent because of
reasons beyond the control of the Plan Administrator.  If you have a claim for benefits that is
denied or ignored, in whole or in part, you may file suit in a state or federal
court.  If it should happen that the Plan
fiduciaries misused the Plan’s money, or if you are discriminated against for
asserting your rights, you may seek assistance from the U.S. Department of
Labor, or you may file suit in a federal court. 
The court will decide who should pay court costs and legal fees.  If you are successful, the court may order
the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay
these costs and fees, for example, if it finds your claim is frivolous.

 

If you have any questions about the Plan, you should contact the Plan
Administrator.  If you have any questions
about this statement or about your rights under ERISA, or if you need
assistance in obtaining documents from the Plan Administrator, you should
contact the nearest office of the Employee Benefits Security Administration,
U.S. Department of Labor, listed in your telephone directory or the Division of
Technical Assistance and Inquiries, Employee Benefits Security Administration,
U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C.
20210.  You may also obtain certain
publications about your rights and responsibilities under ERISA by calling the
publications hotline of the Employee Benefits Security Administration or
accessing its website at http://www.dol.gov/ebsa/.

 

Exhibit A:  Release
(Employees Age 40 and Older Individual Termination)

Exhibit B:  Release
(Employees Age 40 and Older Group Termination)

Exhibit C:  Release
(Employees Under Age 40 Individual and Group Termination)

 

16

 

For Employees Age 40 and Older

Individual Termination

 

EXHIBIT A

 

RELEASE

 

Certain capitalized terms used in this
Release are defined in the Amylin Pharmaceuticals, Inc. Officer Change in
Control Severance Benefit Plan (the “Plan”)
which I have reviewed.

 

I hereby confirm my obligations under the
Company’s proprietary information and inventions agreement.

 

I understand that this Release, together with
the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company, affiliates of the Company and me with
regard to the subject matter hereof.  I
am not relying on any promise or representation by the Company that is not
expressly stated therein.

 

I acknowledge that I have read and understand
Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.”  I hereby expressly
waive and relinquish all rights and benefits under that section and any law of
any jurisdiction of similar effect with respect to my release of any claims I
may have against the Company.

 

Except as otherwise set forth in this
Release, I hereby release, acquit and forever discharge the Company, its
parents and subsidiaries, and their officers, directors, agents, servants,
employees, shareholders, successors, assigns and affiliates, of and from any
and all claims, liabilities, demands, causes of action, costs, expenses,
attorneys fees, damages, indemnities and obligations of every kind and nature,
in law, equity, or otherwise, known and unknown, suspected and unsuspected,
disclosed and undisclosed (other than any claim for indemnification I may have
as a result of any third party action against me based on my employment with
the Company), arising out of or in any way related to agreements, events, acts
or conduct at any time prior to the date I execute this Release, including, but
not limited to:  all such claims and
demands directly or indirectly arising out of or in any way connected with my
employment with the Company or the termination of that employment, including
but not limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands
related to salary, bonuses, commissions, stock, stock options, or any other
ownership interests in the Company, vacation pay, fringe benefits, expense
reimbursements, severance pay, or any other form of disputed compensation;
claims pursuant to any federal, state or local law or cause of action
including, but not limited to, the federal Civil Rights Act of 1964, as
amended; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”);
the federal Employee Retirement Income Security Act of 1974, as amended; the
federal Americans with Disabilities Act of 1990; the federal Worker Adjustment
and Retraining Notification Act of 1988; the California Fair Employment and
Housing Act, as amended; tort law; contract law; statutory law; common law;
wrongful discharge; discrimination; fraud; defamation; emotional distress; and
breach of the implied covenant of good faith and fair dealing; provided, however, that nothing in this paragraph shall be
construed in any way to 

 

1

 

release the Company from its obligation to indemnify me pursuant to the
Company’s indemnification obligation pursuant to agreement or applicable law.

 

I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under ADEA.  I also acknowledge that the consideration
given under the Agreement for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already
entitled.  I further acknowledge that I
have been advised by this writing, as required by the ADEA, that: 
(A) my waiver and release do not apply to any rights
or claims that may arise on or after the date I execute this Release; (B) I should
consult with an attorney prior to executing this Release; (C) I have twenty-one (21) days to
consider this Release (although I may choose to voluntarily execute this
Release earlier); (D) I
have seven (7) days following the execution of this Release by the parties
to revoke the Release; and (E) this Release shall not be effective until
the date upon which the revocation period has expired, which shall be the
eighth day after this Release is executed by me.

 

	
   

  	
   

  	
   

  	
  [NAME OF EMPLOYEE]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  

 

2

 

For Employees Age 40 and Older

Group Termination

 

EXHIBIT B

 

RELEASE

 

Certain capitalized terms used in this
Release are defined in the Amylin Pharmaceuticals, Inc. Officer Change in
Control Severance Benefit Plan (the “Plan”)
which I have reviewed.

 

I hereby confirm my obligations under the
Company’s proprietary information and inventions agreement.

 

I understand that this Release, together with
the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company, affiliates of the Company and me with
regard to the subject matter hereof.  I am
not relying on any promise or representation by the Company that is not
expressly stated therein.

 

I acknowledge that I have read and understand
Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.”  I hereby expressly
waive and relinquish all rights and benefits under that section and any law of
any jurisdiction of similar effect with respect to my release of any claims I
may have against the Company.

 

Except as otherwise set forth in this
Release, I hereby release, acquit and forever discharge the Company, its
parents and subsidiaries, and their officers, directors, agents, servants,
employees, shareholders, successors, assigns and affiliates, of and from any
and all claims, liabilities, demands, causes of action, costs, expenses,
attorneys fees, damages, indemnities and obligations of every kind and nature,
in law, equity, or otherwise, known and unknown, suspected and unsuspected,
disclosed and undisclosed (other than any claim for indemnification I may have
as a result of any third party action against me based on my employment with
the Company), arising out of or in any way related to agreements, events, acts
or conduct at any time prior to the date I execute this Release, including, but
not limited to:  all such claims and
demands directly or indirectly arising out of or in any way connected with my employment
with the Company or the termination of that employment, including but not
limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands
related to salary, bonuses, commissions, stock, stock options, or any other
ownership interests in the Company, vacation pay, fringe benefits, expense
reimbursements, severance pay, or any other form of disputed compensation;
claims pursuant to any federal, state or local law or cause of action
including, but not limited to, the federal Civil Rights Act of 1964, as
amended; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”);
the federal Employee Retirement Income Security Act of 1974, as amended; the
federal Americans with Disabilities Act of 1990; the federal Worker Adjustment
and Retraining Notification Act of 1988; the California Fair Employment and
Housing Act, as amended; tort law; contract law; statutory law; common law;
wrongful discharge; discrimination; fraud; defamation; emotional distress; and
breach of the implied covenant of good faith and fair dealing; provided, however, that nothing in this paragraph shall be
construed in any way to 

 

1

 

release the Company from its obligation to indemnify me pursuant to the
Company’s indemnification obligation pursuant to agreement or applicable law.

 

I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under ADEA.  I also acknowledge that the consideration
given under the Agreement for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already
entitled.  I further acknowledge that I
have been advised by this writing, as required by the ADEA, that: 
(A) my waiver and release do not apply to any rights
or claims that may arise on or after the date I execute this Release; (B) I should
consult with an attorney prior to executing this Release; (C) I have forty-five (45) days to
consider this Release (although I may choose to voluntarily execute this
Release earlier); (D) I
have seven (7) days following the execution of this Release by the parties
to revoke the Release; (E) this Release shall not be effective until the
date upon which the revocation period has expired, which shall be the eighth
day after this Release is executed by me; and (F) I have received with
this Release a detailed list of the job titles and ages of all employees who
were terminated in this group termination and the ages of all employees of all
employees in the same job classification or organizational unit who were not
terminated.

 

	
   

  	
   

  	
   

  	
  [NAME OF EMPLOYEE]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  

 

2

 

For Employees Under Age 40

Individual
and Group Termination

 

EXHIBIT C

 

RELEASE

 

Certain capitalized terms used in this
Release are defined in the Amylin Pharmaceuticals, Inc. Officer Change in
Control Severance Benefit Plan (the “Plan”)
which I have reviewed.

 

I hereby confirm my obligations under the
Company’s proprietary information and inventions agreement.

 

I understand that this Release, together with
the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company, affiliates of the Company and me with
regard to the subject matter hereof.  I
am not relying on any promise or representation by the Company that is not
expressly stated therein.

 

I acknowledge that I have read and understand
Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.”  I hereby expressly
waive and relinquish all rights and benefits under that section and any law of
any jurisdiction of similar effect with respect to my release of any claims
hereunder.

 

Except as otherwise set forth in this
Release, I hereby generally and completely release the Company, the Employers
and their parents, subsidiaries, successors, predecessors and affiliates, and
its and their partners, members, directors, officers, employees, stockholders,
shareholders, agents, attorneys, predecessors, insurers, affiliates and
assigns, from any and all claims, liabilities and obligations, both known and
unknown, that arise out of or are in any way related to events, acts, conduct,
or omissions occurring at any time prior to and including the date I sign this Release.  This general release includes, but is not
limited to: (a) all claims arising out of or in any way related to my
employment with the Company, the Employers or their affiliates, or the
termination of that employment; (b) all claims related to my compensation
or benefits, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company, the Employers, or their affiliates; (c) all
claims for breach of contract, wrongful termination, and breach of the implied
covenant of good faith and fair dealing; (d) all tort claims, including
claims for fraud, defamation, emotional distress, and discharge in violation of
public policy; and (e) all federal, state, and local statutory claims,
including claims for discrimination, harassment, retaliation, attorneys’ fees,
or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990 (as amended), the
federal Age Discrimination in Employment Act (as amended) (“ADEA”), the federal Employee
Retirement Income Security Act of 1974 (as amended), and the California Fair
Employment and Housing Act (as amended); provided, however, that nothing in this paragraph shall be
construed in any way to release the Company or its affiliates from its
obligation to indemnify me pursuant to agreement or applicable law.

 

1

 

I acknowledge that to become effective, I
must sign and return this Release to the Company so that it is received not
later than fourteen (14) days following the date it is provided to me.

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

2

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