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Exhibit 4.05  

 
 

CELLEGY PHARMACEUTICALS, INC.
  1995 EQUITY INCENTIVE PLAN
  STOCK OPTION AGREEMENT    
    

        This Stock Option Agreement (this "Agreement") is made and entered into as of the date of grant set forth below
(the "Date of Grant") by and between Cellegy Pharmaceuticals, Inc., a Delaware corporation (the  "Company"), and the participant named
below ("Participant"). Capitalized terms not defined herein shall
have the meaning ascribed to them in the Company's 1995 Equity Incentive Plan, as amended (the "Plan"). 

Participant:

Social Security Number:

Participant's Address:  

Total Option Shares:

Exercise Price Per Share:

Date of Grant:

Vesting Start Date:

Expiration Date:

Type of Stock Option  

	(Check one):	 	ý Incentive Stock Option

o Nonqualified Stock Option	 	 

        1.     Grant of Option.    The Company hereby grants to Participant an option (this  "Option") to purchase up to the total number of shares of Common Stock of the Company set forth above (collectively, the  "Shares") at the Exercise Price
Per Share set forth above (the "Exercise Price"), subject to all of the
terms and conditions of this Agreement and the Plan. If designated as an Incentive Stock Option above, this Option is intended to qualify as an "incentive stock option"
("ISO") within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the  "Code"). 

        2.     Vesting; Exercise Period. 

        2.1   Vesting of Right to Exercise Option.    This Option shall become exercisable as it vests as to portions of the
Shares as follows: (a) this Option shall not be exercisable with respect to any of the Shares until                        
(the "Vesting Start Date"); (b) On the Vesting Start Date this Option
shall become exercisable as to twenty-five percent (25%) of the Shares; and (c) thereafter, on the first anniversary of the Vesting Start Date and on each successive anniversary of
the Vesting Start Date, this Option shall become exercisable as to an additional twenty-five percent (25%) of the Shares; provided that this Option shall in no event ever become
exercisable with respect to more than 100% of the Shares. Vesting will occur so long as Participant continuously provides services to the Company or any Subsidiary, Parent or Affiliate of the Company
and is not terminated. 

        2.2   Expiration.    This Option shall expire on the Expiration Date set forth above and must be exercised, if at
all, on or before the earlier of the Expiration Date or the date on which this Option is earlier terminated in accordance with the provisions of Section 3. 

        3.     Termination. 

        3.1   Termination for Cause.    If Participant is Terminated for cause, then this Option, to the extent (and only to
the extent) that it would have been exercisable by Participant on the date of Termination, may be exercised by Participant no later than three (3) months after the date of Termination, but in
any event no later than the Expiration Date. 

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        3.2   Termination Because of Death or Disability.    If Participant is Terminated because of death or Disability or
Participant, then this Option, to the extent that it is exercisable by Participant on the date of Termination, may be exercised by Participant (or Participant's legal representative) no later than
twelve (12) months after the date of Termination, but in any event no later than the Expiration Date. 

        3.3   No Obligation to Employ.    Nothing in the Plan or this Agreement shall confer on Participant any right to
continue in the employ of, or other relationship with, the Company or any Parent, Subsidiary or Affiliate of the Company, or limit in any way the right of the Company or any Parent, Subsidiary or
Affiliate of the Company to terminate Participant's employment or other relationship at any time, with or without cause. 

        4.     Manner of Exercise. 

        4.1   Stock Option Exercise Agreement.    To exercise this Option, Participant (or in the case of exercise after
Participant's death, Participant's executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement, or in such other form as may
be approved by the Company from time to time (the "Exercise Agreement"), which shall set forth, inter alia,  Participant's election to exercise this
Option, the number of Shares being purchased, any restrictions imposed on the Shares and any representations, warranties and agreements
regarding Participant's investment intent and access to information as may be required by the Company to comply with applicable securities laws. If someone other than Participant exercises this
Option, then such person must submit documentation reasonably acceptable to the Company that such person has the right to exercise this Option. 

        4.2   Limitations on Exercise.    This Option may not be exercised unless such exercise is in compliance with all
applicable federal and state securities laws, as they are in effect on the date of exercise. This Option may not be exercised as to fewer than 100 Shares unless it is exercised as to all Shares as to
which this Option is then exercisable. 

        4.3   Payment.    The Exercise Agreement shall be accompanied by full payment of the Exercise Price for the Shares
being purchased in cash (by check), or where permitted by law: 

	(a)
	By
any combination of the foregoing.

	(b)
	By
cancellation of indebtedness of the Company to the Participant.

	(c)
	In
the Company's discretion by waiver of compensation due or accrued to Participant for services rendered.

	(d)
	Provided
that a public market for the Company's stock exists: (1) through a "same day sale" commitment from Participant and a broker-dealer that is a member of the National
Association of Securities Dealers (an "NASD Dealer") whereby Participant irrevocably elects to exercise this Option and to sell a portion of the Shares
so purchased to pay for the exercise price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the exercise price directly to the Company; or (2) through a
"margin" commitment from Participant and a NASD Dealer whereby Participant irrevocably elects to exercise this Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as
security for a loan from the NASD Dealer in the amount of the exercise price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the exercise price directly to the
Company. 

        4.4   Tax Withholding.    Prior to the issuance of the Shares upon exercise of this Option, Participant must pay or
provide for any applicable federal or state withholding obligations of the Company. If the Committee permits, Participant may provide for payment of withholding taxes upon exercise of this Option by
requesting that the Company retain Shares with a Fair Market 

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Value
equal to the minimum amount of taxes required to be withheld. In such case, the Company shall issue the net number of Shares to the Participant by deducting the Shares retained from the Shares
issuable upon exercise. 

        4.5   Issuance of Shares.    Provided that the Exercise Agreement and payment are in form and substance satisfactory
to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant's authorized assignee, or Participant's legal representative, and shall deliver
certificates representing the Shares with the appropriate legends affixed thereto. 

        5.     Notice of Disqualifying Disposition of ISO Shares.    If this Option is an ISO, and if
Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (a) the date two (2) years after the Date of Grant, and (b) the
date one (1) year after transfer of such Shares to Participant upon exercise of this Option, then Participant shall immediately notify the Company in writing of such disposition. Participant
agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant from the early disposition by payment in cash or out of the current
wages or other compensation payable to Participant. 

        6.     Compliance with Laws and Regulations.    The exercise of this Option and the issuance
and transfer of Shares
shall be subject to compliance by the Company and Participant with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which
the Company's Common Stock may be listed at the time of such issuance or transfer. Participant understands that the Company is under no obligation to register or qualify the Shares with the Securities
and Exchange Commission, any state securities commission or any stock exchange to effect such compliance. 

        7.     Non-transferability of Option.    This Option may not be transferred in any
manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of Participant only by Participant. The terms of this Option shall be binding upon the
executors, administrators, successors and assigns of Participant. 

        8.     Tax Consequences.    Set forth below is a brief summary as of the Date of Grant of some
of the federal and California tax consequences of exercise of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
PARTICIPANT SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES. 

        8.1   Exercise of ISO.    If this Option qualifies as an ISO, there will be no regular federal or California income
tax liability upon the exercise of this Option, although the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price will be treated as a tax preference
item for federal income tax purposes and may subject the Participant to the alternative minimum tax in the year of exercise. 

        8.2   Exercise of Nonqualified Stock Option.    If this Option does not qualify as an ISO, there may be a regular
federal and California income tax liability upon the exercise of this Option. Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price. The Company will be required to withhold from Participant's compensation or collect from
Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 

        8.3   Disposition of Shares.    If the Shares are held for more than twelve (12) months after the date of the
transfer of the Shares pursuant to the exercise of this Option (and, in the case of an ISO, are disposed of more than two (2) years after the Date of Grant), then any gain realized on
disposition of the Shares will be treated as long term capital gain for federal and California 

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income
tax purposes. If Shares purchased under an ISO are disposed of within one (1) year of exercise or within two (2) years after the Date of Grant, then any gain realized on such
disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the excess, if any, of the fair market value of the Shares on the date of exercise over the
Exercise Price. The Company will be required to withhold from Participant's compensation or collect from Participant and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the time of exercise. 

        9.     Privileges of Stock Ownership.    Participant shall not have any of the rights of a
shareholder with respect to any Shares until Participant exercises this Option and pays the Exercise Price. 

        10.   Interpretation.    Any dispute regarding the interpretation of this Agreement shall be
submitted by Participant or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company and Participant. 

        11.   Entire Agreement.    The Plan is incorporated herein by reference. This Agreement and
the Plan and the Exercise Agreement constitute the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior understandings and
agreements with respect to such subject matter. 

        12.   Notices.    Any notice required to be given or delivered to the Company under the terms
of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices. Any notice required to be given or delivered to Participant shall be
in writing and addressed to Participant at the address indicated above or to such other address as such party may designate in writing from time to time to the Company. All notices shall be deemed to
have been given or delivered upon: personal delivery; three (3) days after deposit in the United States mail by certified or registered mail (return receipt requested); one (1) business
day after deposit with any return receipt express courier (prepaid); or one (1) business day after transmission by rapifax or telecopier. 

        13.   Successors and Assigns.    The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be
binding upon Participant and Participant's heirs, executors, administrators, legal representatives, successors and assigns. 

        14.   Governing Law.    This Agreement shall be governed by and construed in accordance with
the internal laws of the State of Delaware, without regard to that body of law pertaining to choice of law or conflict of law. 

        15.   Acceptance.    Participant hereby acknowledges receipt of a copy of the Plan and this
Agreement. Participant has read and understands the terms and provisions thereof, and accepts this Option subject to all the terms and conditions of the Plan and this Agreement. Participant
acknowledges that there may be adverse tax consequences upon exercise of this Option or disposition of the Shares and that the Company has advised Participant to consult a tax advisor prior to such
exercise or disposition. 

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        IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in duplicate by its duly authorized
representative and Participant has executed this Agreement in duplicate as of the Date of Grant. 

	CELLEGY PHARMACEUTICALS, INC.	 	PARTICIPANT
	

By:	

    
	
 	

    
 (Signature)
	

    
 (Please print name)	
 	

    
 (Please print name)
	

    
 (Please print title)	
 	

 

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Exhibit 4.07  

 
 

CELLEGY PHARMACEUTICALS, INC.
  1995 DIRECTORS' STOCK OPTION PLAN
  DIRECTORS' NONQUALIFIED ANNUAL STOCK OPTION GRANT    
    

        This Stock Option Grant (this "Grant") is made and entered into as of the date of grant set forth below (the  "Date of Grant") by and between Cellegy Pharmaceuticals, Inc., a Delaware corporation (the  "Company"), and the Optionee named below ("Optionee"). 

Optionee: 

Optionee's
Address: 

Total
Shares Subject to Option: 

Exercise
Price Per Share: 

Date
of Grant: 

Expiration
Date: 

ý
Nonqualified Stock Option 

        1.     Grant of Option.    The Company hereby grants to Optionee an option (this  "Option") to purchase up to the total number of shares of Common Stock of the Company set forth above (collectively, the  "Shares") at the exercise price per share set forth above (the "Exercise Price"), subject to all of the
terms and conditions of this Grant and the Company's 1995 Directors' Stock Option Plan, as amended (the "Plan"). Unless otherwise defined herein,
capitalized terms used herein shall have the meanings ascribed to them in the Plan. 

        2.     Exercise and Vesting of Option.    Subject to the terms and conditions of the Plan and
this Grant, this Option shall become exercisable as it vests. Subject to the terms and conditions of the Plan and this Grant, this Option shall vest as to one-third (1/3) of
the Shares subject to it on the first anniversary of the Date of Grant. Thereafter, this Option shall vest as one-third (1/3) of the total Shares upon each of the next two
(2) successive anniversaries of the Date of Grant so long as the Optionee continuously remains a member of the Board of Directors of the Company (a "Board
Member"). 

        3.     Restriction on Exercise.    This Option may not be exercised unless such exercise is in
compliance with the Securities Act, and all applicable state securities laws, as they are in effect on the date of exercise, and the requirements of any stock exchange or national market system on
which the Company's Common Stock may be listed at the time of exercise. Optionee understands that the Company is under no obligation to register, qualify or list the Shares with the SEC, any state
securities commission or any stock exchange or national market system to effect such compliance. 

        4.     Termination of Option.    Except as provided below in this Section, this Option shall
terminate and may not be exercised if Optionee ceases to be a Board Member. The date on which Optionee ceases to be a Board Member shall be referred to as the "Termination
Date."

        4.1   Termination Generally.    If Optionee ceases to be a Board Member for any reason except death or disability,
then this Option, to the extent (and only to the extent) that it would have been exercisable by Optionee on the Termination Date, may be exercised by Optionee within three (3) months after the
Termination Date, but in no event later than the Expiration Date. 

        4.2   Death or Disability.    If Optionee ceases to be a Board Member because of the death of Optionee or the
disability of Optionee within the meaning of Section 22(e)(3) of the Code, then this Option, to the extent (and only to the extent) that it would have been exercisable by Optionee 

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on
the Termination Date, may be exercised by Optionee (or Optionee's legal representative) within twelve (12) months after the Termination Date, but in no event later than the Expiration Date. 

        5.     Manner of Exercise. 

        5.1   Exercise Agreement.    This Option shall be exercisable by delivery to the Company of an executed written
Directors' Stock Option Exercise Agreement, or in such other form as may be approved by the Committee, which shall set forth Optionee's election to exercise some or all of this Option, the number of
Shares being purchased, any restrictions imposed on the Shares and such other representations and agreements as may be required by the Company to comply with applicable securities laws. 

        5.2   Payment.    Payment for the Shares purchased upon exercise of this Option may be made (a) in cash or by
check; (b) by surrender of shares of Common Stock of the Company that have been owned by Optionee for more than six (6) months (and which have been paid for within the meaning of SEC
Rule 144 and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares) or were obtained by the Optionee in the open
public market, having a Fair Market Value equal to the Exercise Price of the Option; (c) by waiver of compensation due or accrued to Optionee for services rendered; (d) provided that a
public market for the Company's stock exists, through a "same day sale" commitment from the Optionee and a broker-dealer that is a member of the National Association of Securities Dealers (an  "NASD
Dealer") whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased to pay for the Exercise
Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise Price directly to the Company; (e) provided that a public market for the Company's
stock exists, through a "margin" commitment from the Optionee and a NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer
in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise
Price directly to the Company; or (f) by any combination of the foregoing. 

        5.3   Withholding Taxes.    Prior to the issuance of the Shares upon exercise of this Option, Optionee shall pay or
make adequate provision for any applicable federal or state withholding obligations of the Company. 

        5.4   Issuance of Shares.    Provided that such notice and payment are in form and substance satisfactory to counsel
for the Company, the Company shall cause the Shares to be issued in the name of Optionee or Optionee's legal representative. To enforce any restrictions on Optionee's Shares, the Committee may require
Optionee to deposit all certificates, together with stock powers or other instruments of transfer approved by the Committee appropriately endorsed in blank, with the Company or an agent designated by
the Company to hold in escrow until such restrictions have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. 

        6.     Nontransferability of Option.    During the lifetime of the Optionee, this Option shall
be exercisable only by Optionee or by Optionee's guardian or legal representative, unless otherwise permitted by the Committee. This Option may not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or by the laws of descent and distribution. 

        7.     Interpretation.    Any dispute regarding the interpretation of this Grant shall be
submitted by Optionee or the Company to the Committee that administers the Plan, which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Committee shall be
final and binding on the Company and on Optionee. Nothing in the Plan or this Grant shall confer on Optionee any right to continue as a Board Member. 

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        8.     Entire Agreement.    The Plan and the Directors Stock Option Exercise Agreement in the
form attached hereto as Exhibit A, and the terms and conditions thereof, are incorporated herein by this reference. This Grant, the Plan and the Directors Stock Option Exercise Agreement
constitute the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior understandings and agreements with respect to such subject
matter. 

	 	 	CELLEGY PHARMACEUTICALS, INC.
	

 	
 	

By:	

    

	 	 	 	Name:	A. Richard Juelis
	 	 	 	Title:	Vice President, Finance and

Chief Financial Officer

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CELLEGY PHARMACEUTICALS, INC. 1995 DIRECTORS' STOCK OPTION PLAN DIRECTORS' NONQUALIFIED ANNUAL STOCK OPTION GRANT

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