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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of report (Date of earliest event reported):
August 1, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NILE THERAPEUTICS, INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact name of Registrant as Specified
in its Charter) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 32%">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="width: 32%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center">001-34058</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center">88-0363465</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center">(State or other jurisdiction<BR> of incorporation)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Commission</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>File Number)</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center">(I.R.S. Employer<BR> Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>4 West 4th Ave., Suite 400 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>San Mateo, California 94402</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Address of Principal Executive Offices)
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(650) 458-2670 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Registrant&rsquo;s telephone number,
including area code) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Not Applicable </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Former name or former address, if changed
since last report) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 4%; font-family: Wingdings">&uml;</TD>
    <TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
</TABLE>
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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-family: Wingdings">&uml;</TD>
    <TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-family: Wingdings">&uml;</TD>
    <TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-family: Wingdings">&uml;</TD>
    <TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -75pt"><B>&nbsp;</B></P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 1.01.</B></TD><TD><B>Entry into a Material Definitive Agreement.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -48pt">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -48pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Amendment of Services Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">As previously disclosed, Nile Therapeutics,
Inc. (the &ldquo;Company&rdquo;) and Two River Consulting, LLC (&ldquo;TRC&rdquo;) entered into a Services Agreement dated June
24, 2009, as amended on each of August 12, 2010 and March 17, 2011 (together, the &ldquo;Services Agreement&rdquo;), pursuant to
which TRC provides various clinical development, operational and administrative services to the Company, including the part-time
services of Joshua A. Kazam as the Company&rsquo;s President and Chief Executive Officer.&nbsp;Following the March 2011 amendment
to the Services Agreement, the monthly fee payable by the Company for such services was $31,702, which monthly fee was reduced
to $30,082 in July 2011 and to $28,600 in April 2012 when certain services were eliminated. On August 1, 2012, the Company and
TRC agreed that, upon the appointment of a full-time President and Chief Executive Officer (see Item 5.02, below), the monthly
fee payable under the Services Agreement would be reduced to $6,600 to reflect the termination of Mr. Kazam&rsquo;s services as
President and Chief Executive Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">Mr. Kazam and Arie S. Belldegrun are each
directors of the Company and partners of TRC.&nbsp;&nbsp;The terms of the August 1, 2012 amendment to the Services Agreement were
reviewed and approved by a special committee of the Company&rsquo;s Board of Directors consisting of independent, disinterested
directors.&nbsp;&nbsp;None of the members of the special committee has any interest in TRC or the Services Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 5.02.</B></TD><TD><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Appointment of President and Chief Executive Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">On August 3, 2012, the Company entered into
a letter agreement (the &ldquo;Agreement&rdquo;) with Darlene Horton, M.D., pursuant to which Dr. Horton will be employed as the
Company&rsquo;s President and Chief Executive Officer, effective August 6, 2012. The Agreement provides that Dr. Horton&rsquo;s
employment with the Company will continue for an indefinite term. Pursuant to the Agreement, Dr. Horton was also appointed to serve
as a member of the Company&rsquo;s Board of Directors, effective August 6, 2012. If Dr. Horton&rsquo;s employment as President
and Chief Executive Officer is terminated at any time, whether by her or the Company, the Agreement provides that she will be deemed
to have resigned as a director of the Company, effective as of the date of such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">The Agreement provides that Dr. Horton will
receive an initial monthly base salary of $28,314, and if she remains employed with the Company as of the date of a &ldquo;compensation
adjustment event,&rdquo; then (i) her annualized base salary shall be increased to $400,000, (ii) she will become eligible to receive
an annual performance cash bonus in an amount up to 30% of her annualized base salary, and (iii) she will be granted a 10-year
stock option to purchase a number of shares of the Company&rsquo;s common stock equal to 5% of the then issued and outstanding
shares of common stock at an exercise price equal to the current market price of the common stock on the date of grant. The stock
option, which will vest ratably over a three-year period with respect to 50% of the underlying shares and over a three-year period
upon the achievement of specified performance criteria with respect to the remaining 50% of the shares, will be awarded pursuant
to the Company&rsquo;s Amended and Restated 2005 Stock Option Plan, as amended (the &ldquo;Plan&rdquo;), and be evidenced by a
stock option agreement in the Company&rsquo;s standard form of agreement for use under the Plan. For purposes of the Agreement,
the term &ldquo;compensation adjustment event&rdquo; means the date on which the Company secures sufficient capital, whether by
a financing or strategic transaction (or any combination thereof) or another means, in order to enable the Company to initiate
and fund to completion a Phase 2 clinical trial of the Company&rsquo;s cenderitide product candidate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">The Agreement further provides that if the
Company terminates Dr. Horton&rsquo;s employment without &ldquo;cause&rdquo; at any time after the date of a compensation adjustment
event, then she will be entitled to continue receiving her then current annualized base salary and medical benefits (the &ldquo;Severance
Benefits&rdquo;) for a period of six months following such termination; provided, however, that if such termination occurs more
than one year after the compensation adjustment event, then Dr. Horton will be entitled to receive the Severance Benefits for one
year following such termination. For purposes of the Agreement, the term &ldquo;cause&rdquo; means the following conduct or actions
taken by Dr. Horton: (i) breach of any material term of the Agreement or the confidentiality, non-competition and invention assignment
agreement executed by Dr. Horton as a condition of her employment under the Agreement; (ii) conviction of any felony or other crime
of moral turpitude; (iii) any act of fraud or dishonesty injurious to the Company or its reputation; (iv) continual failure or
refusal to perform her employment duties; (v) any act or omission that, in the Company&rsquo;s reasonable determination, indicates
alcohol or drug abuse by Dr. Horton; or (vi) engagement in any form of harassment prohibited by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">In addition, the Agreement provides that
if the Company completes a Change of Control Transaction (as defined in the Agreement) prior to the date of a compensation adjustment
event, and Dr. Horton&rsquo;s employment is terminated by the Company (or any successor entity) without cause during the period
beginning on the effective date of the Change of Control Transaction and ending on the six-month anniversary of such effective
date, then she will be entitled to receive a cash payment equal to 5% of the applicable Change of Control Proceeds (as defined
in the Agreement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">The foregoing summary of the Agreement is
qualified in its entirety by reference to the complete Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated
herein by reference. A copy of the Company&rsquo;s press release issued July 22, 2010, announcing Dr. Horton&rsquo;s appointment
is attached hereto as Exhibit 99.1 and incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">Prior to her appointment as President and
Chief Executive Officer, Dr. Horton served as the Company&rsquo;s Chief Medical Officer pursuant to the terms of a Consulting Agreement
dated June 18, 2012 (the &ldquo;Consulting Agreement&rdquo;), as previously disclosed in the Company&rsquo;s Current Report on
Form 8-K filed on June 21, 2012, the contents of which are incorporated herein by reference. The Consulting Agreement was terminated
upon Dr. Horton&rsquo;s appointment as President and Chief Executive Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Resignation of President and Chief Executive Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">On August 6, 2012, effective as of the appointment
of Dr. Horton, Joshua A. Kazam resigned as the Company&rsquo;s President and Chief Executive Officer. Mr. Kazam, who had served
in such offices on a part-time basis since June 2009, will continue to serve as a director of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 9.01.</B></TD><TD><B>Financial Statements and Exhibits.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>(d) Exhibits. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 15%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 0.75pt solid"><B>Exhibit&nbsp;No.</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 83%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 0.75pt solid"><B>Description</B></P></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Letter Agreement between Nile Therapeutics, Inc. and Darlene Horton, M.D., dated August 3, 2012.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 99.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Press release dated August 6, 2012.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">Pursuant to the requirements of the Securities
Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in; font-weight: bold">NILE THERAPEUTICS, INC.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; width: 50%">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; width: 3%">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; width: 32%">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">Date: August 7, 2012</TD>
    <TD STYLE="text-indent: 0in">By:</TD>
    <TD STYLE="text-indent: 0in; padding-left: 0.12in; border-bottom: Black 1pt solid">/s/ Daron Evans</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; padding-left: 0.12in">Daron Evans</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; padding-left: 0.12in">Chief Financial Officer</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-indent: 0in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX </B></P>

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 0.75pt solid"><B>Exhibit&nbsp;No.</B></P></TD>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 0.75pt solid"><B>Description</B></P></TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Letter Agreement between Nile Therapeutics, Inc. and Darlene Horton, M.D., dated August 3, 2012.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 99.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Press release dated August 6, 2012.</TD></TR>
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[{"type": "8-K", "sequence": "1", "filename": "v320573_8-k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 26930}]
{"company-data": {"conformed-name": "Nile Therapeutics, Inc.", "cik": "0001133869", "assigned-sic": "2834", "irs-number": "000000000", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-34058", "film-number": "121014358"}, "business-address": {"street1": "4 WEST 4TH AVE", "street2": "SUITE 400", "city": "SAN MATEO", "state": "CA", "zip": "94402", "phone": "650-458-2678"}, "mail-address": {"street1": "4 WEST 4TH AVE", "street2": "SUITE 400", "city": "SAN MATEO", "state": "CA", "zip": "94402"}, "former-company": {"former-conformed-name": "SMI PRODUCTS INC", "date-changed": "20010206"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
August 1, 2012
NILE THERAPEUTICS, INC.
(Exact name of Registrant as Specified
in its Charter)
Delaware
001-34058
88-0363465
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
4 West 4th Ave., Suite 400
San Mateo, California 94402
(Address of Principal Executive Offices)
(650) 458-2670
(Registrant's telephone number,
including area code)
Not Applicable
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.
Entry into a Material Definitive Agreement.
Amendment of Services Agreement
As previously disclosed, Nile Therapeutics,
Inc. (the "Company") and Two River Consulting, LLC ("TRC") entered into a Services Agreement dated June
24, 2009, as amended on each of August 12, 2010 and March 17, 2011 (together, the "Services Agreement"), pursuant to
which TRC provides various clinical development, operational and administrative services to the Company, including the part-time
services of Joshua A. Kazam as the Company's President and Chief Executive Officer. Following the March 2011 amendment
to the Services Agreement, the monthly fee payable by the Company for such services was $31,702, which monthly fee was reduced
to $30,082 in July 2011 and to $28,600 in April 2012 when certain services were eliminated. On August 1, 2012, the Company and
TRC agreed that, upon the appointment of a full-time President and Chief Executive Officer (see Item 5.02, below), the monthly
fee payable under the Services Agreement would be reduced to $6,600 to reflect the termination of Mr. Kazam's services as
President and Chief Executive Officer.
Mr. Kazam and Arie S. Belldegrun are each
directors of the Company and partners of TRC.  The terms of the August 1, 2012 amendment to the Services Agreement were
reviewed and approved by a special committee of the Company's Board of Directors consisting of independent, disinterested
directors.  None of the members of the special committee has any interest in TRC or the Services Agreement.
Item 5.02.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers.
Appointment of President and Chief Executive Officer
On August 3, 2012, the Company entered into
a letter agreement (the "Agreement") with Darlene Horton, M.D., pursuant to which Dr. Horton will be employed as the
Company's President and Chief Executive Officer, effective August 6, 2012. The Agreement provides that Dr. Horton's
employment with the Company will continue for an indefinite term. Pursuant to the Agreement, Dr. Horton was also appointed to serve
as a member of the Company's Board of Directors, effective August 6, 2012. If Dr. Horton's employment as President
and Chief Executive Officer is terminated at any time, whether by her or the Company, the Agreement provides that she will be deemed
to have resigned as a director of the Company, effective as of the date of such termination.
The Agreement provides that Dr. Horton will
receive an initial monthly base salary of $28,314, and if she remains employed with the Company as of the date of a "compensation
adjustment event," then (i) her annualized base salary shall be increased to $400,000, (ii) she will become eligible to receive
an annual performance cash bonus in an amount up to 30% of her annualized base salary, and (iii) she will be granted a 10-year
stock option to purchase a number of shares of the Company's common stock equal to 5% of the then issued and outstanding
shares of common stock at an exercise price equal to the current market price of the common stock on the date of grant. The stock
option, which will vest ratably over a three-year period with respect to 50% of the underlying shares and over a three-year period
upon the achievement of specified performance criteria with respect to the remaining 50% of the shares, will be awarded pursuant
to the Company's Amended and Restated 2005 Stock Option Plan, as amended (the "Plan"), and be evidenced by a
stock option agreement in the Company's standard form of agreement for use under the Plan. For purposes of the Agreement,
the term "compensation adjustment event" means the date on which the Company secures sufficient capital, whether by
a financing or strategic transaction (or any combination thereof) or another means, in order to enable the Company to initiate
and fund to completion a Phase 2 clinical trial of the Company's cenderitide product candidate.
The Agreement further provides that if the
Company terminates Dr. Horton's employment without "cause" at any time after the date of a compensation adjustment
event, then she will be entitled to continue receiving her then current annualized base salary and medical benefits (the "Severance
Benefits") for a period of six months following such termination; provided, however, that if such termination occurs more
than one year after the compensation adjustment event, then Dr. Horton will be entitled to receive the Severance Benefits for one
year following such termination. For purposes of the Agreement, the term "cause" means the following conduct or actions
taken by Dr. Horton: (i) breach of any material term of the Agreement or the confidentiality, non-competition and invention assignment
agreement executed by Dr. Horton as a condition of her employment under the Agreement; (ii) conviction of any felony or other crime
of moral turpitude; (iii) any act of fraud or dishonesty injurious to the Company or its reputation; (iv) continual failure or
refusal to perform her employment duties; (v) any act or omission that, in the Company's reasonable determination, indicates
alcohol or drug abuse by Dr. Horton; or (vi) engagement in any form of harassment prohibited by law.
2
In addition, the Agreement provides that
if the Company completes a Change of Control Transaction (as defined in the Agreement) prior to the date of a compensation adjustment
event, and Dr. Horton's employment is terminated by the Company (or any successor entity) without cause during the period
beginning on the effective date of the Change of Control Transaction and ending on the six-month anniversary of such effective
date, then she will be entitled to receive a cash payment equal to 5% of the applicable Change of Control Proceeds (as defined
in the Agreement).
The foregoing summary of the Agreement is
qualified in its entirety by reference to the complete Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated
herein by reference. A copy of the Company's press release issued July 22, 2010, announcing Dr. Horton's appointment
is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Prior to her appointment as President and
Chief Executive Officer, Dr. Horton served as the Company's Chief Medical Officer pursuant to the terms of a Consulting Agreement
dated June 18, 2012 (the "Consulting Agreement"), as previously disclosed in the Company's Current Report on
Form 8-K filed on June 21, 2012, the contents of which are incorporated herein by reference. The Consulting Agreement was terminated
upon Dr. Horton's appointment as President and Chief Executive Officer.
Resignation of President and Chief Executive Officer
On August 6, 2012, effective as of the appointment
of Dr. Horton, Joshua A. Kazam resigned as the Company's President and Chief Executive Officer. Mr. Kazam, who had served
in such offices on a part-time basis since June 2009, will continue to serve as a director of the Company.
Item 9.01.
Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
10.1
Letter Agreement between Nile Therapeutics, Inc. and Darlene Horton, M.D., dated August 3, 2012.
99.1
Press release dated August 6, 2012.
3
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.
NILE THERAPEUTICS, INC.
Date: August 7, 2012
By:
/s/ Daron Evans
Daron Evans
Chief Financial Officer
4
EXHIBIT INDEX
Exhibit No.
Description
10.1
Letter Agreement between Nile Therapeutics, Inc. and Darlene Horton, M.D., dated August 3, 2012.
99.1
Press release dated August 6, 2012.
5