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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b><b><font size="5" style="font-size:18.0pt;font-weight:bold;"><br>
  </font></b><b><font size="5" style="font-size:18.0pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington,
  D.C. 20549</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b><b><font style="font-weight:bold;"><br>
  </font>Pursuant to Section&nbsp;13 or
  15(d)&nbsp;of the Securities Exchange Act of 1934</b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">May&nbsp;22, 2008</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date of
  Report (Date of earliest event reported)</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">NPS
  PHARMACEUTICALS, INC.</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of
  registrant as specified in its charter)</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">0-23272</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">87-0439579</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State
    or other jurisdiction of</font><font size="2" style="font-size:10.0pt;"><br>
    </font><font size="2" style="font-size:10.0pt;">incorporation)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission
    File Number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S.
    Employer<br>
    Identification Number)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">550 Hills
  Drive, 3<sup>rd</sup> Floor</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Bedminster,
  NJ 07921</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of
  principal executive offices)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(908) 450-5300</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s
  telephone number, including area code)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box
  below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the
  filing obligation of the registrant under any of the following provisions:</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;letter-spacing:-.15pt;">o</font><font size="1" style="font-size:3.0pt;letter-spacing:-.15pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;letter-spacing:-.15pt;">Written communications pursuant to Rule&nbsp;425 under the Securities
  Act (17 CFR 230.425)</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;letter-spacing:-.15pt;">o</font><font size="1" style="font-size:3.0pt;letter-spacing:-.15pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;letter-spacing:-.15pt;">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act
  (17 CFR 240.14a-12)</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;letter-spacing:-.15pt;">o</font><font size="1" style="font-size:3.0pt;letter-spacing:-.15pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;letter-spacing:-.15pt;">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under
  the Exchange Act (17 CFR 240.14d-2(b))</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;letter-spacing:-.15pt;">o</font><font size="1" style="font-size:3.0pt;letter-spacing:-.15pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;letter-spacing:-.15pt;">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under
  the Exchange Act (17 CFR 240.13e-4(c))</font></p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\dchen\08-14790-2\task2963180\14790-2-ba.htm',USER='dchen',CD='May 28 15:17 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .75in;text-indent:-.75in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.02.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Departure of Directors or Certain Officers; Election of Directors;
  Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</font></b></p>
  
  <p style="margin:0in 0in .0001pt .75in;text-indent:-.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;22, 2008, the
  stockholders of the Company approved an amendment to our 1998 Stock Option
  Plan, which we refer to as the 1998 Plan, to extend the term of the plan by
  four (4)&nbsp;years until May&nbsp;31, 2012.&#160;
  The Board of Directors previously adopted such amendment, subject to
  stockholder approval.&#160; A summary of the
  principal features of the 1998 Plan, as amended, is provided below, but is
  qualified in its entirety by reference to the full text of the 1998 Plan, as
  amended, which is attached as exhibit hereto.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Summary of the 1998 Plan, as
  amended</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Purpose</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 1998 Plan was adopted to
  provide a means to secure and retain the services of present and future
  employees, directors, and consultants of NPS and to provide incentives for
  employees, directors and consultants to exert maximum efforts for the success
  of NPS and thereby promote our long-term interests, including growth in the
  value of our equity and enhancement of long-term stockholder value.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Administration</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 1998 Plan is
  administered by our Board of Directors. The Board has full power and authority
  to interpret and construe the provisions of the 1998 Plan and, subject to the
  provisions of the 1998 Plan, to determine the persons to whom awards will be
  granted, the type of awards to be granted, the dates on which awards will be
  granted, the type, amount, and form of consideration in connection with awards
  to be granted, and the other terms and conditions of each award granted under the
  Plan.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board may delegate
  administration of the 1998 Plan to a committee of at least two members of the
  Board and has delegated such administration to the Compensation Committee.&#160; The Compensation Committee has the powers to
  administer the 1998 Plan subject to such limitations as the Board
  provides.&#160; As used herein with respect to
  the 1998 Plan, where appropriate, the term &#147;Board&#148; refers to the Compensation
  Committee.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to maximize our
  ability to recognize a business expense deduction under Section&nbsp;162(m)&nbsp;of
  the Internal Revenue Code in connection with compensation recognized by &#147;covered
  employees&#148; (defined in Section&nbsp;162(m)&nbsp;as the chief executive officer
  and other four most highly compensated officers), the regulations under Section&nbsp;162(m)&nbsp;require
  that the directors who serve as members of the Committee responsible for
  administering the 1998 Plan with respect to these covered employees must be &#147;outside
  directors.&#148; We have determined that the Compensation Committee currently
  consists of outside, non-employee directors.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Eligibility</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Incentive Stock Options (&#147;ISOs&#148;)
  may be granted under the 1998 Plan to employees (including executives) of NPS
  and any affiliates.&#160; Employees (including
  executives), directors and consultants of NPS are all eligible to receive
  Non-Statutory Stock Options (&#147;NSOs&#148;) awards under the 1998 Plan.&#160; In order to ensure that NPS will be able to
  deduct for tax purposes the compensation attributable to the exercise of
  options granted under the 1998 Plan, the 1998 Plan limits the maximum number of
  shares of Common Stock that may be covered by stock options issued under the
  1998 Plan to one individual for any consecutive three calendar years to
  750,000.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ISOs granted to an employee
  owning 10% or more of the total combined voting power of NPS or any affiliate
  of NPS at the time of grant must have an exercise price of at least 110% of the
  fair market value of the stock subject to the option on the date of grant, and
  the term of the option may not exceed five years from the date of grant. For
  ISOs granted under the 1998 Plan, the aggregate fair market value determined at
  the time of grant of the shares of Common Stock with respect to which such
  options are exercisable for the first time by an optionee during any calendar
  year (under all such plans of NPS and its affiliates), may not exceed $100,000.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of April&nbsp;1, 2008,
  six executive officers, six non-employee directors, and approximately 32
  employees are eligible to participate in the 1998 Plan.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\dchen\08-14790-2\task2963180\14790-2-ba.htm',USER='dchen',CD='May 28 15:17 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shares Available for Awards</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On March&nbsp;3, 1998, the
  Board adopted the 1998 Stock Option Plan, which was subsequently approved by
  the stockholders on May&nbsp;20, 1998. There were a total of 1,000,000 shares
  initially authorized for issuance under the 1998 Plan. Pursuant to Board and
  stockholder approval, this amount was increased to 3,000,000 shares in June&nbsp;2000,
  to 4,900,000 shares in May&nbsp;2002, and to 6,500,000 in August&nbsp;2003.&#160; As of April&nbsp;1, 2008, there were
  4,041,315&#160; shares subject to outstanding
  options granted under our 1998 Plan.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If there is any change in
  the Common Stock subject to the 1998 Plan or subject to any option granted
  under the 1998 Plan (through merger, consolidation, reorganization,
  recapitalization, stock dividend, dividend in property other than cash, stock
  split, liquidating dividend, combination of shares, exchange of shares, change
  in corporate structure or otherwise), the 1998 Plan and options outstanding
  thereunder may be appropriately adjusted as to the type of security and the
  maximum number of shares subject to such plan, the maximum number of shares
  which may be granted to an employee during any calendar year, and the type of
  security, number of shares and price per share of stock subject to such
  outstanding awards in order to preserve (or prevent enlargement of) the
  benefits or potential benefits intended at the time of the grant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Terms of the Options</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following is a
  description of the permissible terms of options under the 1998 Plan.&#160; Individual option grants may be more
  restrictive as to any or all of the permissible terms described below.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Exercise
  Price; Valuation</font></i><font size="2" style="font-size:10.0pt;">. The exercise price of ISOs and NSOs under the 1998
  Plan may not be less than the fair market value of the Common Stock subject to
  the option as of the date of the option grant, and in some cases with respect
  to ISOs, as described above under &#147;Eligibility&#148;, may not be less than 110% of
  such fair market value.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Payment.</font></i><font size="2" style="font-size:10.0pt;">&#160; The exercise price of options granted under
  the 1998 Option Plan may be paid either:</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">in cash at the time the
  option is exercised;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">by delivery of other Common
  Stock of NPS or a combination of cash and already owned Common Stock;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">through surrender of shares
  of Common Stock available for exercise under the Option;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">pursuant to a deferred
  payment arrangement;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">pursuant to a
  broker-assisted exercise same-day sales program;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">in any other form of legal
  consideration acceptable to the Board; or</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">any combination of the
  above.</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">No
  Repricing</font></i><font size="2" style="font-size:10.0pt;">. Except for certain adjustments due to corporate transactions
  as described herein, the exercise price for any stock option (ISOs and NSOs)
  under the 1998 Plan may not be decreased after the grant of such stock option,
  and a stock option may not be surrendered as consideration in exchange for the
  grant of a new stock option with a lower exercise price.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Option
  Exercise</font></i><font size="2" style="font-size:10.0pt;">. Options granted under the 1998 Plan may become
  exercisable, or vest, in cumulative increments as determined by the Board. The
  Board has the power to accelerate the time during which an option may be
  exercised, and options granted may contain provisions for accelerated vesting
  upon specified events or conditions. In addition, options granted under the
  1998 Plan may permit exercise prior to vesting, but in such event, the optionee
  may be required to enter into an early exercise stock purchase agreement that
  allows NPS to repurchase shares not yet vested at their exercise price should
  the optionee leave the employ of NPS before vesting.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Term</font></i><font size="2" style="font-size:10.0pt;">. The maximum
  term of ISOs and NSOs under the 1998 Plan is ten years, except that in certain
  cases, as described above under &#147;Eligibility&#148;, the maximum term of ISOs is five
  years. ISO status terminates three months after termination of the optionee&#146;s
  employment with NPS or association as director or affiliate of NPS, unless (a)&nbsp;such
  termination is due to such person&#146;s permanent and total disability (as defined
  in the Internal Revenue Code of 1986, as amended), in which case the option
  may, but need not, provide that it may be exercised at any time within one year
  of such termination; (b)&nbsp;the optionee dies while serving, or within a
  three-month period of having served NPS or any affiliate of NPS, in which case
  the option may, but need not, be exercisable (to the extent that the option was
  exercisable at the time of the optionee&#146;s death) within twelve months of the
  optionee&#146;s death by the person or persons to whom the rights to such option
  pass by will or by the laws of descent and distribution; or (c)&nbsp;the option
  by its terms specifically provide otherwise. Individual options by their terms
  may provide for exercise within a longer </font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\dchen\08-14790-2\task2963180\14790-2-ba.htm',USER='dchen',CD='May 28 15:17 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">period of time following
  termination of employment or the consulting relationship.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effect of Certain Corporate
  Events</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 1998 Plan provides that,
  in the event of a specified type of merger or other corporate reorganization,
  the time during which options outstanding under the 1998 Plan become vested
  shall be accelerated and all outstanding Options shall become immediately
  exercisable upon such event. The acceleration of an award in the event of an
  acquisition or similar corporate event may be viewed as an anti-takeover
  provision, which may have the effect of discouraging a proposal to acquire or
  otherwise obtain control of NPS.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Duration, Amendment, and
  Termination</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board may suspend or
  terminate the 1998 Plan without stockholder approval or ratification at any
  time or from time to time. Unless sooner terminated, the plan shall terminate
  at midnight, May&nbsp;31, 2012.&#160; No
  options may be granted under the plan while the plan is suspended or after it
  is terminated. The Board may also amend the 1998 Plan at any time or from time
  to time. However, the Board may not, without the approval of our stockholders:</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">modify the plan to the
  extent such modification requires stockholder approval in order for the plan to
  satisfy or continue to satisfy Sections 422 and/or 162(m)&nbsp;of the Code, if
  applicable, Rule&nbsp;16b-3, and/or Nasdaq or other securities exchange listing
  requirements;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">increase the number of
  shares issuable under the 1998 Plan;</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">decrease the minimum stock
  option exercise price set forth in the 1998 Plan; or</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">permit repricing of
  outstanding options.</font></p>
  
  <p style="margin:0in 0in .0001pt .85in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board may submit any
  other amendment to the 1998 Plan for stockholder approval, including, but not
  limited to, amendments intended to satisfy the requirements of Section&nbsp;162(m)&nbsp;of
  the Code regarding the exclusion of performance-based compensation from the
  limitation on the deductibility of compensation paid to certain employees.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Restrictions on Transfer</font></u><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as otherwise provided
  by the Board, awards under the 1998 Plan are not transferable other than as
  designated by the participant by will or by the laws of descent and
  distribution. In general, ISOs may not be transferred by the optionee otherwise
  than by will or by the laws of descent and distribution and, during the
  lifetime of the optionee, may be exercised only by the optionee. NSOs may not
  be transferred except when transfer to a family member or related trust or
  partnership is authorized by express provision of the option grant agreement,
  by will or by the laws of descent and distribution or pursuant to a domestic
  relations order satisfying the requirements of Rule&nbsp;16b-3 and, during the
  lifetime of the optionee, may be exercised only by the optionee, a valid family
  member, or a transferee pursuant to a domestic relations order.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Financial Statements and
  Exhibits.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Exhibits</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;margin-left:.5in;width:93.16%;">
   <tr>
    <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.82%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
    </td>
    <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.14%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="87%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:87.04%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="9%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.82%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
    </td>
    <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.14%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="87%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:87.04%;">
    <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1998 Stock Option Plan, as amended.</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\dchen\08-14790-2\task2963180\14790-2-ba.htm',USER='dchen',CD='May 28 15:17 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
  requirements of the Securities Exchange Act of 1934, the Registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="24%" valign="top" style="padding:0in 0in 0in 0in;width:24.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:&nbsp;&nbsp;May&nbsp;28,
    2008</font></p>
    </td>
    <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.2%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.26%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NPS
    PHARMACEUTICALS, INC.</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="24%" valign="top" style="padding:0in 0in 0in 0in;width:24.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.2%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="24%" valign="top" style="padding:0in 0in 0in 0in;width:24.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.2%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:42.08%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
    Andrew Rackear</font></p>
    </td>
   </tr>
   <tr>
    <td width="24%" valign="top" style="padding:0in 0in 0in 0in;width:24.56%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.2%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.16%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="42%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:42.08%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Andrew
    Rackear<br>
    Senior Vice President, General Counsel and<br>
    Secretary</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></u></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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   <tr>
    <td width="6%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:6.5%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit<br>
    Number</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="90%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:90.76%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="6%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:6.5%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
    </td>
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    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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    <td width="90%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:90.76%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1998 Stock Option Plan,
    as amended.</font></p>
    </td>
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
  
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metadata_filer: {"company-data": {"conformed-name": "NPS PHARMACEUTICALS INC", "cik": "0000890465", "assigned-sic": "2836", "irs-number": "870439579", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-23272", "film-number": "08864183"}, "business-address": {"street1": "550 HILLS DRIVE", "city": "BEDMINSTER", "state": "NJ", "zip": "07921", "phone": "(908) 450-5300"}, "mail-address": {"street1": "550 HILLS DRIVE", "city": "BEDMINSTER", "state": "NJ", "zip": "07921"}}
text: 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
  May 22, 2008
  Date of
  Report (Date of earliest event reported)
  NPS
  PHARMACEUTICALS, INC.
  (Exact name of
  registrant as specified in its charter)
  Delaware
  0-23272
  87-0439579
  (State
    or other jurisdiction of
  incorporation)
  (Commission
    File Number)
  (I.R.S.
    Employer
  Identification Number)
  550 Hills
  Drive, 3
  rd
  Floor
  Bedminster,
  NJ 07921
  (Address of
  principal executive offices)
  (908) 450-5300
  (Registrant's
  telephone number, including area code)
  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:
  o
  Written communications pursuant to Rule 425 under the Securities
  Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
  (17 CFR 240.14a-12)
  o
  Pre-commencement communications pursuant to Rule 14d-2(b) under
  the Exchange Act (17 CFR 240.14d-2(b))
  o
  Pre-commencement communications pursuant to Rule 13e-4(c) under
  the Exchange Act (17 CFR 240.13e-4(c))
  Item 5.02.
  Departure of Directors or Certain Officers; Election of Directors;
  Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
  On May 22, 2008, the
  stockholders of the Company approved an amendment to our 1998 Stock Option
  Plan, which we refer to as the 1998 Plan, to extend the term of the plan by
  four (4) years until May 31, 2012. 
  The Board of Directors previously adopted such amendment, subject to
  stockholder approval.  A summary of the
  principal features of the 1998 Plan, as amended, is provided below, but is
  qualified in its entirety by reference to the full text of the 1998 Plan, as
  amended, which is attached as exhibit hereto.
  Summary of the 1998 Plan, as
  amended
  .
  Purpose
  .
  The 1998 Plan was adopted to
  provide a means to secure and retain the services of present and future
  employees, directors, and consultants of NPS and to provide incentives for
  employees, directors and consultants to exert maximum efforts for the success
  of NPS and thereby promote our long-term interests, including growth in the
  value of our equity and enhancement of long-term stockholder value.
  Administration
  .
  The 1998 Plan is
  administered by our Board of Directors. The Board has full power and authority
  to interpret and construe the provisions of the 1998 Plan and, subject to the
  provisions of the 1998 Plan, to determine the persons to whom awards will be
  granted, the type of awards to be granted, the dates on which awards will be
  granted, the type, amount, and form of consideration in connection with awards
  to be granted, and the other terms and conditions of each award granted under the
  Plan.
  The Board may delegate
  administration of the 1998 Plan to a committee of at least two members of the
  Board and has delegated such administration to the Compensation Committee.  The Compensation Committee has the powers to
  administer the 1998 Plan subject to such limitations as the Board
  provides.  As used herein with respect to
  the 1998 Plan, where appropriate, the term "Board" refers to the Compensation
  Committee.
  In order to maximize our
  ability to recognize a business expense deduction under Section 162(m) of
  the Internal Revenue Code in connection with compensation recognized by "covered
  employees" (defined in Section 162(m) as the chief executive officer
  and other four most highly compensated officers), the regulations under Section 162(m) require
  that the directors who serve as members of the Committee responsible for
  administering the 1998 Plan with respect to these covered employees must be "outside
  directors." We have determined that the Compensation Committee currently
  consists of outside, non-employee directors.
  Eligibility
  .
  Incentive Stock Options ("ISOs")
  may be granted under the 1998 Plan to employees (including executives) of NPS
  and any affiliates.  Employees (including
  executives), directors and consultants of NPS are all eligible to receive
  Non-Statutory Stock Options ("NSOs") awards under the 1998 Plan.  In order to ensure that NPS will be able to
  deduct for tax purposes the compensation attributable to the exercise of
  options granted under the 1998 Plan, the 1998 Plan limits the maximum number of
  shares of Common Stock that may be covered by stock options issued under the
  1998 Plan to one individual for any consecutive three calendar years to
  750,000.
  ISOs granted to an employee
  owning 10% or more of the total combined voting power of NPS or any affiliate
  of NPS at the time of grant must have an exercise price of at least 110% of the
  fair market value of the stock subject to the option on the date of grant, and
  the term of the option may not exceed five years from the date of grant. For
  ISOs granted under the 1998 Plan, the aggregate fair market value determined at
  the time of grant of the shares of Common Stock with respect to which such
  options are exercisable for the first time by an optionee during any calendar
  year (under all such plans of NPS and its affiliates), may not exceed $100,000.
  As of April 1, 2008,
  six executive officers, six non-employee directors, and approximately 32
  employees are eligible to participate in the 1998 Plan.
  2
  Shares Available for Awards
  .
  On March 3, 1998, the
  Board adopted the 1998 Stock Option Plan, which was subsequently approved by
  the stockholders on May 20, 1998. There were a total of 1,000,000 shares
  initially authorized for issuance under the 1998 Plan. Pursuant to Board and
  stockholder approval, this amount was increased to 3,000,000 shares in June 2000,
  to 4,900,000 shares in May 2002, and to 6,500,000 in August 2003.  As of April 1, 2008, there were
  4,041,315  shares subject to outstanding
  options granted under our 1998 Plan.
  If there is any change in
  the Common Stock subject to the 1998 Plan or subject to any option granted
  under the 1998 Plan (through merger, consolidation, reorganization,
  recapitalization, stock dividend, dividend in property other than cash, stock
  split, liquidating dividend, combination of shares, exchange of shares, change
  in corporate structure or otherwise), the 1998 Plan and options outstanding
  thereunder may be appropriately adjusted as to the type of security and the
  maximum number of shares subject to such plan, the maximum number of shares
  which may be granted to an employee during any calendar year, and the type of
  security, number of shares and price per share of stock subject to such
  outstanding awards in order to preserve (or prevent enlargement of) the
  benefits or potential benefits intended at the time of the grant.
  Terms of the Options
  .
  The following is a
  description of the permissible terms of options under the 1998 Plan.  Individual option grants may be more
  restrictive as to any or all of the permissible terms described below.
  Exercise
  Price; Valuation
  . The exercise price of ISOs and NSOs under the 1998
  Plan may not be less than the fair market value of the Common Stock subject to
  the option as of the date of the option grant, and in some cases with respect
  to ISOs, as described above under "Eligibility", may not be less than 110% of
  such fair market value.
  Payment.
  The exercise price of options granted under
  the 1998 Option Plan may be paid either:
  ·
  in cash at the time the
  option is exercised;
  ·
  by delivery of other Common
  Stock of NPS or a combination of cash and already owned Common Stock;
  ·
  through surrender of shares
  of Common Stock available for exercise under the Option;
  ·
  pursuant to a deferred
  payment arrangement;
  ·
  pursuant to a
  broker-assisted exercise same-day sales program;
  ·
  in any other form of legal
  consideration acceptable to the Board; or
  ·
  any combination of the
  above.
  No
  Repricing
  . Except for certain adjustments due to corporate transactions
  as described herein, the exercise price for any stock option (ISOs and NSOs)
  under the 1998 Plan may not be decreased after the grant of such stock option,
  and a stock option may not be surrendered as consideration in exchange for the
  grant of a new stock option with a lower exercise price.
  Option
  Exercise
  . Options granted under the 1998 Plan may become
  exercisable, or vest, in cumulative increments as determined by the Board. The
  Board has the power to accelerate the time during which an option may be
  exercised, and options granted may contain provisions for accelerated vesting
  upon specified events or conditions. In addition, options granted under the
  1998 Plan may permit exercise prior to vesting, but in such event, the optionee
  may be required to enter into an early exercise stock purchase agreement that
  allows NPS to repurchase shares not yet vested at their exercise price should
  the optionee leave the employ of NPS before vesting.
  Term
  . The maximum
  term of ISOs and NSOs under the 1998 Plan is ten years, except that in certain
  cases, as described above under "Eligibility", the maximum term of ISOs is five
  years. ISO status terminates three months after termination of the optionee's
  employment with NPS or association as director or affiliate of NPS, unless (a) such
  termination is due to such person's permanent and total disability (as defined
  in the Internal Revenue Code of 1986, as amended), in which case the option
  may, but need not, provide that it may be exercised at any time within one year
  of such termination; (b) the optionee dies while serving, or within a
  three-month period of having served NPS or any affiliate of NPS, in which case
  the option may, but need not, be exercisable (to the extent that the option was
  exercisable at the time of the optionee's death) within twelve months of the
  optionee's death by the person or persons to whom the rights to such option
  pass by will or by the laws of descent and distribution; or (c) the option
  by its terms specifically provide otherwise. Individual options by their terms
  may provide for exercise within a longer
  3
  period of time following
  termination of employment or the consulting relationship.
  Effect of Certain Corporate
  Events
  .
  The 1998 Plan provides that,
  in the event of a specified type of merger or other corporate reorganization,
  the time during which options outstanding under the 1998 Plan become vested
  shall be accelerated and all outstanding Options shall become immediately
  exercisable upon such event. The acceleration of an award in the event of an
  acquisition or similar corporate event may be viewed as an anti-takeover
  provision, which may have the effect of discouraging a proposal to acquire or
  otherwise obtain control of NPS.
  Duration, Amendment, and
  Termination
  .
  The Board may suspend or
  terminate the 1998 Plan without stockholder approval or ratification at any
  time or from time to time. Unless sooner terminated, the plan shall terminate
  at midnight, May 31, 2012.  No
  options may be granted under the plan while the plan is suspended or after it
  is terminated. The Board may also amend the 1998 Plan at any time or from time
  to time. However, the Board may not, without the approval of our stockholders:
  ·
  modify the plan to the
  extent such modification requires stockholder approval in order for the plan to
  satisfy or continue to satisfy Sections 422 and/or 162(m) of the Code, if
  applicable, Rule 16b-3, and/or Nasdaq or other securities exchange listing
  requirements;
  ·
  increase the number of
  shares issuable under the 1998 Plan;
  ·
  decrease the minimum stock
  option exercise price set forth in the 1998 Plan; or
  ·
  permit repricing of
  outstanding options.
  The Board may submit any
  other amendment to the 1998 Plan for stockholder approval, including, but not
  limited to, amendments intended to satisfy the requirements of Section 162(m) of
  the Code regarding the exclusion of performance-based compensation from the
  limitation on the deductibility of compensation paid to certain employees.
  Restrictions on Transfer
  .
  Except as otherwise provided
  by the Board, awards under the 1998 Plan are not transferable other than as
  designated by the participant by will or by the laws of descent and
  distribution. In general, ISOs may not be transferred by the optionee otherwise
  than by will or by the laws of descent and distribution and, during the
  lifetime of the optionee, may be exercised only by the optionee. NSOs may not
  be transferred except when transfer to a family member or related trust or
  partnership is authorized by express provision of the option grant agreement,
  by will or by the laws of descent and distribution or pursuant to a domestic
  relations order satisfying the requirements of Rule 16b-3 and, during the
  lifetime of the optionee, may be exercised only by the optionee, a valid family
  member, or a transferee pursuant to a domestic relations order.
  Item 9.01.
  Financial Statements and
  Exhibits.
  (c)
  Exhibits
  Exhibit No.
  Description
  10.1
  1998 Stock Option Plan, as amended.
  4
  SIGNATURES
  Pursuant to the
  requirements of the Securities Exchange Act of 1934, the Registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.
  Date:  May 28,
    2008
  NPS
    PHARMACEUTICALS, INC.
  By:
  /s/
    Andrew Rackear
  Andrew
    Rackear
  Senior Vice President, General Counsel and
  Secretary
  5
  EXHIBIT INDEX
  Exhibit
  Number
  Description
  10.1
  1998 Stock Option Plan,
    as amended.
  6