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Exhibit 10.2
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| [EMPLOYEE] |
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Option Number:
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| [EMPLOYEE
ID] |
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Plan:
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| [ADDRESS] |
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Grant Date:
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GRANT OF STOCK
OPTION
On this
day of
(the “ Grant Date ”), Amgen Inc., a Delaware
corporation (the “ Company ”), pursuant to its
Amended and Restated 1991 Equity Incentive Plan (the “
Plan ”), which is incorporated herein by reference,
has this day granted to you, the optionee named above, an option to
purchase (Number of Shares) shares of the $.0001 par value
common stock of the Company (“ Common Stock ”)
pursuant to the terms hereof this option. This option is not
intended to qualify and will not be treated as an “incentive
stock option” within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (together with the
regulations and other official guidance promulgated thereunder, the
“ Code ”).
The provisions of your option
are as follows:
I. Subject
to the terms and conditions of this option, on each anniversary of
the Grant Date (each, a “ Vesting Date ”) the
Ratable Amount (as defined below) of this option shall vest,
provided that you have remained continuously and actively employed
with the Company or an Affiliate of the Company (as defined in the
Plan) through each applicable Vesting Date, unless your employment
has terminated due to your Voluntary Termination (as defined in
paragraph IV(5)). This option may only be exercised for whole
shares of Common Stock, and the Company shall be under no
obligation to issue any fractional shares of Common Stock to you.
Subject to the limitations contained herein, this option shall be
exercisable with respect to each installment on or after the
applicable Vesting Date. Notwithstanding anything herein to the
contrary, the vesting schedule may be accelerated (by notice in
writing) by the Company in its sole discretion at any time during
the term of this option. In addition, vesting may be suspended by
the Company in its sole discretion during a leave of absence as
provided from time to time according to Company policies and
practices. For purposes of this option, the “Ratable
Amount” shall mean a whole number of shares of Common Stock
equal to the number of shares of Common Stock covered by this
option divided by four (4) to which fractional shares of
Common Stock resulting from this calculation shall be combined into
whole shares of Common Stock and added to the forgoing calculation
to vest on the Vesting Date indicated:
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No. Fractional
Shares per Ratable
Amount
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Vesting
Date
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| 0.25 |
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One (1)
whole share of Common Stock on Fourth (4th) anniversary |
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| 0.50 |
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One (1)
whole share of Common Stock on each of Second (2nd) and Fourth
(4th) anniversary |
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| 0.75 |
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One (1)
whole share of Common Stock on each of Second (2nd), Third (3rd)
and Fourth (4th) anniversary |
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II. (1) The
per share exercise price of this option is $(Grant Price) ,
being not less than the fair market value of the Common Stock on
the date of grant of this option.
(2) To
the extent permitted by applicable statutes and regulations,
payment of the exercise price per share is due in full upon
exercise of all or any part of each installment which has become
exercisable by you by means of (i) cash or a check or
(ii) any cashless exercise procedure through the use of a
brokerage arrangement approved by the Company. However, if at the
time of exercise, the Company’s Common Stock is publicly
traded and quoted regularly in the Wall Street Journal ,
payment of the exercise price may be made by delivery of
already-owned shares of Common Stock of a value equal to the
exercise price of the shares of Common Stock for which this option
is being exercised. The already-owned shares must have been owned
by you for the period required to avoid a charge to the
Company’s reported earnings and owned free and clear of any
liens, claims, encumbrances or security interests. Payment may also
be made by a combination of cash and already-owned Common
Stock.
III. Notwithstanding
anything to the contrary contained herein, this option may not be
exercised unless the shares issuable upon exercise of this option
are then registered under the Securities Act of 1933, as amended
(the “ Act ”), or, if such shares are not then
so registered, the Company has determined that such exercise and
issuance would be exempt from the registration requirements of the
Act.
IV. The
term of this option commences on the date hereof and, unless sooner
terminated as set forth below or in the Plan, terminates on the
seventh (7th) anniversary of the date of this option (the
“ Expiration Date ”). This option shall
terminate prior to the Expiration Date as follows: three
(3) months after the termination of your employment with the
Company or an Affiliate of the Company (as defined in the Plan) for
any reason or for no reason unless:
(1) such
termination of your employment is due to your Permanent and Total
Disability (as defined below), in which case the option shall
terminate on the earlier of the Expiration Date or five
(5) years after termination of your employment and the vesting
schedule of the unvested portions of the option will be accelerated
to vest, subject to your execution of a general release and waiver
in a form provided by the Company, as of the day preceding such
termination of your employment with respect to the option, except
that if the option was granted in the calendar year in which such
termination occurs, the option will be accelerated to vest with
respect to a number of shares equal to the number of shares subject
to the option multiplied by a fraction, the numerator of which is
the number of complete months you remained continuously and
actively employed during such calendar year, and the denominator of
which is twelve (12);
(2) such
termination of your employment is due to your death, in which case
the option shall terminate on the earlier of the Expiration Date or
five (5) years after your death and the vesting schedule of
the unvested portion of the option will be accelerated to vest as
of the day preceding your death with respect to the option, except
that if the option was granted in the calendar year in which your
death occurs the option will be accelerated to vest with respect to
a number of shares equal to the number of shares subject to the
option multiplied by a fraction, the numerator of which is the
number of complete months you remained continuously and actively
employed during such calendar year, and the denominator of which is
twelve (12);
(3) during
any part of such three (3) month period, this option is not
exercisable solely because of the condition set forth in paragraph
III above, in which event this option shall not terminate until the
earlier of the Expiration Date or until it shall have been
exercisable for an aggregate period of three (3) months after
the termination of your employment;
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(4) exercise
of this option within three (3) months after termination of
your employment with the Company or with an Affiliate would result
in liability under Section 16(b) of the Securities Exchange
Act of 1934, as amended (the “ Exchange Act ”),
in which case this option will terminate on the earliest of:
(i) the tenth (10th) day after the last date upon which
exercise would result in such liability; (ii) six
(6) months and ten (10) days after the termination of
your employment with the Company or an Affiliate; or (iii) the
Expiration Date; or
(5) such
termination of your employment is due to your voluntary termination
and such voluntary termination is not the result of Permanent and
Total Disability (as defined below) after you are at least sixty
five (65) years of age, or after you are at least fifty-five
(55) years of age and have been an employee of the Company
and/or an Affiliate of the Company for at least ten
(10) consecutive years (“ Voluntary Termination
”), in which case this option shall terminate on the earlier
of the Expiration Date or five (5) years after termination of
your employment and the unvested portions of this option will
become exercisable pursuant to the vesting schedule provided in
paragraph I without regard to your Voluntary Termination of your
employment prior to the Vesting Date, subject to your execution of
a general release and waiver in a form provided by the Company,
with respect to the option, except that if the option was granted
in the calendar year in which your Voluntary Termination occurs,
the option will become exercisable pursuant to the vesting schedule
provided in paragraph I only with respect to a number of shares
equal to the number of shares subject to the option multiplied by a
fraction, the numerator of which is the number of complete months
you remained continuously and actively employed during such
calendar year, and the denominator of which is twelve
(12).
However, in any and all
circumstances and except to the extent the vesting schedule has
been accelerated by the Company in its sole discretion during the
term of this option or as a result of your Permanent and Total
Disability or death as provided in paragraphs IV(1) or IV(2) above,
respectively, or as a result of your Voluntary Termination as
provided in paragraph IV(5) above, this option may be exercised
following termination of your employment only as to that number of
shares as to which it was exercisable on the date of termination of
your employment under the provisions of paragraph I of this option.
For purposes of this option, (i) “ termination of
your employment ” shall mean the last date you are either
an employee of the Company or an Affiliate or engaged as a
consultant or director to the Company or an Affiliate, and
(ii) “ Permanent and Total Disability ”
shall have the meaning ascribed to such term under
Section 22(e)(3) of the Code and with such permanent and total
disability being certified prior to termination of your employment
by (i) the Social Security Administration, (ii) the
comparable governmental authority applicable to an Affiliate of the
Company, (iii) such other body having the relevant
decision-making power applicable to an Affiliate of the Company, or
(iv) an independent medical advisor appointed by the Company
in its sole discretion, as applicable, in any such case.
V. (1) To
the extent specified above, this option may be exercised by
delivering a Notice of Exercise of Stock Option form, together with
the exercise price to the Secretary of the Company, or to such
other person as the Company may designate, during regular business
hours, together with such additional documents as the Company may
then require pursuant to subparagraph 5(f) of the
Plan.
(2) As
a condition to the issuance of shares upon the exercise of this
option, the Company may require you to enter an arrangement
providing for the payment by you to the Company of any tax
withholding obligation of the Company arising by reason of:
(a) the exercise of this option; (b) the lapse of any
substantial risk of forfeiture of which the shares are subject at
the time of exercise; or (c) the disposition of shares
acquired upon such exercise.
VI. This
option is not transferable, except by will or the laws of descent
and distribution, and is exercisable during your life only by you
except as set forth below:
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(1) If
you have named a Trust (as defined in the Plan) as beneficiary of
this option, this option may be exercised by the Trust after your
death; and
(2) All
or a portion of this option may be transferred to an Alternate
Payee (as defined in the Plan) if required by the terms of a QDRO
(as defined in the Plan), as further described in Section 13
of the Plan.
VII. This
option is not an employment or service contract and nothing in this
option shall be deemed to create in any way whatsoever any
obligation on your part to continue in the employ or service of the
Company, or of the Company to continue your employment or service
with the Company.
VIII. Any
notices provided for in this option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in
the case of notices delivered by the Company to you, five
(5) days after deposit in the United States mail, postage
prepaid, addressed to you at the address specified above or at such
other address as you hereafter designate by written notice to the
Secretary of the Company.
IX. This
option is subject to all the provisions of the Plan and its
provisions are hereby made a part of this option, including without
limitation the provisions of paragraph 5 of the Plan relating to
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