Exhibit 10.2


 


BIOSPHERE MEDICAL, INC.
 
2000 Employee Stock Purchase Plan
 


The purpose of this Plan is to provide eligible employees of
BioSphere Medical, Inc. (the “Company”) and certain of its
subsidiaries with opportunities to purchase shares of the Company’s common
stock, $0.01 par value (the “Common Stock”), commencing on July 1, 2000.
Fifty Thousand (50,000) shares of Common Stock in the aggregate have been
approved for this purpose. This Plan is intended to qualify as an “employee
stock purchase plan” as defined in Section 423 of the Internal Revenue
Code of 1986, as amended (the “Code”), and the regulations promulgated
thereunder, and shall be interpreted consistent therewith.


 


1.             ADMINISTRATION. The Plan will be administered by the Company’s Board of Directors (the “Board”) or by a Committee appointed by the Board (the “Committee”). The Board or the Committee has authority to make rules and regulations for the administration of the Plan and its interpretation and decisions with regard thereto shall be final and conclusive.
 
2.             ELIGIBILITY. All employees of the Company, including Directors who are employees, and all employees of any subsidiary of the Company (as defined in Section 424(f) of the Code) designated by the Board or the Committee from time to time (a “Designated Subsidiary”), are eligible to participate in any one or more of the offerings of Options (as defined in Section 9) to purchase Common Stock under the Plan provided that:
 
(a)           they are customarily employed by the Company or a Designated Subsidiary for more than 20 hours a week and for more than five months in a calendar year; and
 
(b)           they have been employed by the Company or a Designated Subsidiary for at least three months prior to enrolling in the Plan; and
 
(c)           they are employees of the Company or a Designated Subsidiary on the first day of the applicable Plan Period (as defined below).
 


No employee may be granted an option hereunder if such employee,
immediately after the option is granted, owns 5% or more of the total combined
voting power or value of the stock of the Company or any subsidiary. For
purposes of the preceding sentence, the attribution rules of Section 424(d) of
the Code shall apply in determining the stock ownership of an employee, and all
stock which the employee has a contractual right to purchase shall be treated
as stock owned by the employee.


 


3.             OFFERINGS. The Company will make one or more offerings (“Offerings”) to employees to purchase stock under this Plan. Offerings will begin each July 1 and January 1, or the first business day thereafter (the “Offering Commencement Dates”). Each Offering Commencement Date will begin a six month period (a “Plan Period”) during which payroll deductions will be made and held for the purchase of Common Stock at the end of the Plan 
 















 
Period. The Board or the Committee may, at its discretion, choose a different Plan Period of twelve (12) months or less for subsequent Offerings.
 
4.             PARTICIPATION. An employee eligible on the Offering Commencement Date of any Offering may participate in such Offering by completing and forwarding a payroll deduction authorization form to the employee’s appropriate payroll office at least 14 days prior to the applicable Offering Commencement Date. The form will authorize a regular payroll deduction from the Compensation received by the employee during the Plan Period. Unless an employee files a new form or withdraws from the Plan, his deductions and purchases will continue at the same rate for future Offerings under the Plan as long as the Plan remains in effect. The term “Compensation” means the amount of money reportable on the employee’s Federal Income Tax Withholding Statement, excluding overtime, incentive or bonus awards, allowances and reimbursements for expenses such as relocation allowances for travel expenses, income or gains on the exercise of Company stock options and similar items, whether or not shown on the employee’s Federal Income Tax Withholding Statement.
 
5.             DEDUCTIONS. The Company will maintain payroll deduction accounts for all participating employees. With respect to any Offering made under this Plan, an employee may authorize a payroll deduction in any dollar amount up to a maximum of 10% of the Compensation he or she receives during the Plan Period or such shorter period during which deductions from payroll are made. Payroll deductions may be at the rate of 1%, 2%, 3%, 4%, 5%, 6%, 7%, 8%, 9%, or 10% of Compensation with any change in compensation during the Plan Period to result in an automatic corresponding change in the dollar amount withheld.
 


No employee may be granted an Option (as defined in Section 9)
which permits his rights to purchase Common Stock under this Plan and any other
employee stock purchase plan (as defined in Section 423(b) of the
Code) of the Company and its subsidiaries, to accrue at a rate which exceeds
$25,000 of the fair market value of such Common Stock (determined at the
Offering Commencement Date of the Plan Period) for each calendar year in which
the Option is outstanding at any time.


 


6.             DEDUCTION CHANGES. An employee may decrease or discontinue his payroll deduction once during any Plan Period, by filing a new payroll deduction authorization form. However, an employee may not increase his payroll deduction during a Plan Period. If an employee elects to discontinue his payroll deductions during a Plan Period, but does not elect to withdraw his funds pursuant to Section 8 hereof, funds deducted prior to his election to discontinue will be applied to the purchase of Common Stock on the Exercise Date (as defined below).
 
7.             INTEREST. Interest will not be paid on any employee accounts, except to the extent that the Board or the Committee, in its sole discretion, elects to credit employee accounts with interest at such per annum rate as it may from time to time determine.
 
8.             WITHDRAWAL OF FUNDS. An employee may at any time prior to the close of business on the last business day in a Plan Period and for any reason permanently draw out the balance accumulated in the employee’s account and thereby withdraw from participation in an 
 
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Offering. Partial withdrawals are not permitted. The employee may not begin participation again during the remainder of the Plan Period.
 


The employee may participate in any subsequent Offering in accordance
with terms and conditions established by the Board or the Committee.


 


9.             PURCHASE OF SHARES. On the Offering Commencement Date of each Plan Period, the Company will grant to each eligible employee who is then a participant in the Plan an option (“Option”) to purchase on the last business day of such Plan Period (the “Exercise Date”), at the Option Price hereinafter provided for, the largest number of whole shares of Common Stock of the Company as does not exceed the number of shares determined by multiplying $2,083 by the number of full months in the Offering Period and dividing the result by the closing price (as defined below) on the Offering Commencement Date of such Plan Period.
 


The purchase price for each share purchased will be 85% of the closing
price of the Common Stock on (i) the first business day of such Plan
Period or (ii) the Exercise Date, whichever closing price shall be less.
Such closing price shall be (a) the closing price on any national
securities exchange on which the Common Stock is listed, (b) the closing
price of the Common Stock on the Nasdaq National Market or (c) the average
of the closing bid and asked prices in the over-the-counter-market, whichever
is applicable, as published in THE WALL STREET JOURNAL If no sales of Common
Stock were made on such a day, the price of the Common Stock for purposes of
clauses (a) and (b) above shall be the reported price for the next
preceding day on which sales were made.


 


Each employee who continues to be a participant in the Plan on the
Exercise Date shall be deemed to have exercised his Option at the Option Price
on such date and shall be deemed to have purchased from the Company the number
of full shares of Common Stock reserved for the purpose of the Plan that his
accumulated payroll deductions on such date will pay for, but not in excess of
the maximum number determined in the manner set forth above.


 


Any balance remaining in an employee’s payroll deduction account at the
end of a Plan Period will be automatically refunded to the employee, except
that any balance which is less than the purchase price of one share of Common
Stock will be carried forward into the employee’s payroll deduction account for
the following Offering, unless the employee elects not to participate in the
following Offering under the Plan, in which case the balance in the employee’s
account shall be refunded.


 


10.           ISSUANCE OF CERTIFICATES. Certificates representing shares of Common Stock purchased under the Plan may be issued only in the name of the employee, in the name of the employee and another person of legal age as joint tenants with rights of survivorship, or (in the Company’s sole discretion) in the name of a brokerage firm, bank or other nominee holder designated by the employee. The Company may, in its sole discretion and in compliance with applicable laws, authorize the use of book entry registration of shares in lieu of issuing stock certificates.
 
11.           RIGHTS ON RETIREMENT, DEATH OR TERMINATION OF EMPLOYMENT. In the event of a participating employee’s termination of employment prior to 
 
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the last business day of a Plan Period, no payroll deduction shall be taken from any pay due and owing to an employee and the balance in the employee’s account shall be paid to the employee or, in the event of the employee’s death, (a) to a beneficiary previously designated in a revocable notice signed by the employee (with any spousal consent required under state law) or (b) in the absence of such a designated beneficiary, to the executor or administrator of the employee’s estate or (c) if no such executor or administrator has been appointed to the knowledge of the Company, to such other person(s) as the Company may, in its discretion, designate. If, prior to the last business day of the Plan Period, the Designated Subsidiary by which an employee is employed shall cease to be a subsidiary of the Company, or if the employee is transferred to a subsidiary of the Company that is not a Designated Subsidiary, the employee shall be deemed to have terminated employment for the purposes of this Plan.
 
12.           OPTIONEES NOT STOCKHOLDERS. Neither the granting of an Option to an employee nor the deductions from his pay shall constitute such employee a stockholder of the shares of Common Stock covered by an Option under this Plan until such shares have been purchased by and issued to him.
 
13.           RIGHTS NOT TRANSFERABLE. Rights under this Plan are not transferable by a participating employee other than by will or the laws of descent and distribution, and are exercisable during the employee’s lifetime only by the employee.
 
14.           APPLICATION OF FUNDS. All funds received or held by the Company under this Plan may be combined with other corporate funds and may be used for any corporate purpose.
 
15.           ADJUSTMENT IN CASE OF CHANGES AFFECTING COMMON STOCK. In the event of a subdivision of outstanding shares of Common Stock, or the payment of a dividend in Common Stock, the number of shares approved for this Plan, and the share limitation set forth in Section 9, shall be increased proportionately, and such other adjustment shall be made as may be deemed equitable by the Board or the Committee. In the event of any other change affecting the Common Stock, such adjustment shall be made as may be deemed equitable by the Board or the Committee to give proper effect to such event.
 
16.           MERGER. If the Company shall at any time merge or consolidate with another corporation and the holders of the capital stock of the Company immediately prior to such merger or consolidation continue to hold at least 80% by voting power of the capital stock of the surviving corporation (“Continuity of Control”), the holder of each Option then outstanding will thereafter be entitled to receive at the next Exercise Date upon the exercise of such Option for each share as to which such Option shall be exercised the securities or property which a holder of one share of the Common Stock was entitled to upon and at the time of such merger or consolidation, and the Board or the Committee shall take such steps in connection with such merger or consolidation as the Board or the Committee shall deem necessary to assure that the provisions of Section 15 shall thereafter be applicable, as nearly as reasonably may be, in relation to the said securities or property as to which such holder of such Option might thereafter be entitled to receive thereunder.


 


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In the event of a merger or consolidation of the Company with or into
another corporation which does not involve Continuity of Control, or of a sale
of all or substantially all of the assets of the Company while unexercised
Options remain outstanding under the Plan, (a) subject to the provisions
of clauses (b) and (c), after the effective date of such transaction, each
holder of an outstanding Option shall be entitled, upon exercise of such
Option, to receive in lieu of shares of Common Stock, shares of such stock or
other securities as the holders of shares of Common Stock received pursuant to
the terms of such transaction; or (b) all outstanding Options may be
cancelled by the Board or the Committee as of a date prior to the effective
date of any such transaction and all payroll deductions shall be paid out to
the participating employees; or (c) all outstanding Options may be
cancelled by the Board or the Committee as of the effective date of any such
transaction, provided that notice of such cancellation shall be given to each
holder of an Option, and each holder of an Option shall have the right to
exercise such Option in full based on payroll deductions then credited to his
account as of a date determined by the Board or the Committee, which date shall
not be less than ten (10) days preceding the effective date of such
transaction.


 


17.           AMENDMENT OF THE PLAN. The Board may at any time, and from time to time, amend this Plan in any respect, except that (a) if the approval of any such amendment by the shareholders of the Company is required by Section 423 of the Code, such amendment shall not be effected without such approval, and (b) in no event may any amendment be made which would cause the Plan to fail to comply with Section 423 of the Code.
 
18.           INSUFFICIENT SHARES. In the event that the total number of shares of Common Stock specified in elections to be purchased under any Offering plus the number of shares purchased under previous Offerings under this Plan exceeds the maximum number of shares issuable under this Plan, the Board or the Committee will allot the shares then available on a pro rata basis.
 
19.           TERMINATION OF THE PLAN. This Plan may be terminated at any time by the Board. Upon termination of this Plan all amounts in the accounts of participating employees shall be promptly refunded.
 
20.           GOVERNMENTAL REGULATIONS. The Company’s obligation to sell and deliver Common Stock under this Plan is subject to listing on a national stock exchange or quotation on the Nasdaq National Market (to the extent the Common Stock is then so listed or quoted) and the approval of all governmental authorities required in connection with the authorization, issuance or sale of such stock.
 
21.           GOVERNING LAW. The Plan shall be governed by Delaware law except to the extent that such law is preempted by federal law.
 
22.           ISSUANCE OF SHARES. Shares may be issued upon exercise of an Option from authorized but unissued Common Stock, from shares held in the treasury of the Company, or from any other proper source.
 
23.           NOTIFICATION UPON SALE OF SHARES. Each employee agrees, by entering the Plan, to promptly give the Company notice of any disposition of shares purchased under the 
 
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Plan where such disposition occurs within two years after the date of grant of the Option pursuant to which such shares were purchased.
 
24.           EFFECTIVE DATE AND APPROVAL OF SHAREHOLDERS. The Plan shall take effect on July 1, 2000 subject to approval by the shareholders of the Company as required by Section 423 of the Code, which approval must occur within twelve months of the adoption of the Plan by the Board.
 
 
Adopted by the Board of Directors on April 29, 2000
 
Approved by the shareholders on June 7, 2000
 
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AMENDMENT NO. 1


 


to


 


BIOSPHERE MEDICAL, INC.


 


2000 EMPLOYEE STOCK PURCHASE PLAN


 


This Amendment No. 1 (the “Amendment”) is made to the 2000
Employee Stock Purchase Plan (the “Plan”) of BioSphere Medical, Inc., a
Delaware corporation (the “Company”).


 


The second sentence of the first paragraph of the
Plan, is hereby amended and restated in its entirety as follows:


 


“One hundred thousand (100,000) shares of Common Stock
in the aggregate have been approved for this purpose.”


 


Except to the extent amended hereby, the Plan is in
all respects hereby ratified and confirmed and shall continue in full force and
effect.


 


 


Adopted
by the Board of Directors, March 9, 2006


 


Approved
by the Shareholders, May 10, 2006


 


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AMENDMENT NO. 2


 


to


 


BIOSPHERE MEDICAL, INC.


 


2000 EMPLOYEE STOCK PURCHASE PLAN


 


This Amendment No. 2 (the “Amendment”) is made to the 2000
Employee Stock Purchase Plan (the “Plan”) of BioSphere Medical, Inc., a
Delaware corporation (the “Company”).


 


The
second sentence of the first paragraph of the Plan, is hereby amended and
restated in its entirety as follows:


 


“One
hundred sixty thousand (160,000) shares of Common Stock in the aggregate have
been approved for this purpose.”


 


Except
to the extent amended hereby, the Plan is in all respects hereby ratified and
confirmed and shall continue in full force and effect.


 


 


Adopted
by the Board of Directors, March 25, 2008


 


Approved
by the Shareholders, May 14, 2008


 


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AMENDMENT NO. 3


 


TO


 


BIOSPHERE MEDICAL,
INC.


 


2000 EMPLOYEE STOCK
PURCHASE PLAN


 


This Amendment No. 3
(the “Amendment”) is made to the 2000 Employee Stock Purchase Plan (the “Plan”)
of BioSphere Medical, Inc., a Delaware corporation (the “Company”).


 


The second sentence of the
first paragraph of the Plan, is hereby in its entirety and the following is
inserted in lieu thereof:


 


“Two hundred thirty thousand
(230,000) shares of Common Stock in the aggregate have been approved for this
purpose.”


 


Except to the extent amended
hereby, the Plan is in all respects hereby ratified and confirmed and shall
continue in full force and effect.


 


 


Adopted by the Board of Directors, February 25,
2009


 


Approved by the Shareholders, May 14, 2009


 


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