Document:

Form of Incentive Stock Option Agreement

FORM OF INCENTIVE STOCK OPTION AGREEMENT

 

THIS AGREEMENT is entered

into and effective as of this          day of                    ,

               (the “Date of Grant”), by and between BioSante Pharmaceuticals,

Inc., a Delaware corporation (the “Company”), and                                       (the “Optionee”).

A.            The Company has adopted the BioSante Pharmaceuticals,

Inc. 1998 Stock Option Plan (the “Plan”) authorizing the Board of Directors of

the Company, or a committee as provided for in the Plan (the Board or such a

committee to be referred to as the “Committee”), to grant incentive stock

options to employees of the Company and its Subsidiaries (as defined in the

Plan).

B.            The Company desires to give the Optionee an inducement to

acquire a proprietary interest in the Company and an added incentive to advance

the interests of the Company by granting to the Optionee an option to purchase

shares of common stock of the Company pursuant to the Plan.

Accordingly, the parties agree as follows:

1.             Grant

of Option.

The Company hereby grants

to the Optionee the right, privilege, and option (the “Option”) to purchase                                          (                )

shares (the “Option Shares”) of the Company’s common stock, no par value (the

“Common Stock”), according to the terms and subject to the conditions

hereinafter set forth and as set forth in the Plan.  Subject to Section 10 of this Agreement, the Option is intended

to be an “incentive stock option,” as that term is used in Section 422 of the

Internal Revenue Code of 1986, as amended (the “Code”).

2.             Option

Exercise Price.

The per share price to be

paid by Optionee in the event of an exercise of the Option will be $             .

3.             Duration

of Option and Time of Exercise.

3.1           Initial Period of Exercisability.  The Option will become exercisable with

respect to the Option Shares in                            installments.  The following table sets forth the initial dates of

exercisability of each installment and the number of Option Shares as to which

this Option will become exercisable on such dates:

Initial

Date of                                                           Number

of Option Shares

Exercisability                                                            Available

for Exercise 

 

 

The foregoing rights to

exercise this Option will be cumulative with respect to the Option Shares

becoming exercisable on each such date, but in no event will this Option be

exercisable after, and this Option will become void and expire as to all

unexercised Option Shares  at, 5:00 p.m.

(Lincolnshire, Illinois time) on                          ,                (the “Time of Termination”).

3.2           Termination of Employment.

(a)           Termination Due to Death,

Disability or Retirement.

(i)             In the event the Optionee’s

employment with the Company and all Subsidiaries is terminated by reason of

death or Disability, this Option will remain exercisable, to the extent

exercisable as of the date of such termination, for a period of six months

after such termination (but in no event after the Time of Termination).

(ii)           In the event the Optionee’s

employment with the Company and all Subsidiaries is terminated by reason of

Retirement, this Option will remain exercisable, to the extent exercisable as

of the date of such termination, for a period of three months after such

termination (but in no event after the Time of Termination).

(b)           Termination for Reasons Other Than

Death, Disability or Retirement.  In

the event that the Optionee’s employment with the Company and all Subsidiaries

is terminated for any reason other than death, Disability or Retirement, or the

Optionee is in the employ of a Subsidiary and the Subsidiary ceases to be a

Subsidiary of the Company (unless the Optionee continues in the employ of the

Company or another Subsidiary), all rights of the Optionee under the Plan and

this Agreement will immediately terminate without notice of any kind, and this

Option will no longer be exercisable; provided, however, that if such

termination is due to any reason other than termination by the Company or any

Subsidiary for “cause” (as defined in the Plan), this Option will remain

exercisable to the extent exercisable as of such termination for a period of

three months after such termination (but in no event after the Time of

Termination).

3.3           Change in Control.  If a Change in Control (as defined in the

Plan) of the Company occurs, this Option will become immediately exercisable in

full and will remain exercisable until the Time of Termination, regardless of

whether the Optionee remains in the employ of the Company or any Subsidiary.

4.             Manner

of Option Exercise.

4.1           Notice.  This Option may be exercised by the Optionee

in whole or in part from time to time, subject to the conditions contained in

the Plan and in this Agreement, by delivery, in person, by facsimile or

electronic transmission or through the mail, to the Company at its principal

executive office in Lincolnshire, Illinois (Attention: Chief Financial

Officer), of a written notice of exercise. 

Such notice must be in a form satisfactory to the Committee, must

identify the Option, must specify the number of Option Shares with respect to

which the Option is being exercised, and must be signed by the person or

persons so exercising the Option.  Such

notice must be accompanied by payment in full of the total purchase price of the

Option Shares purchased.  In the event

that the Option is being exercised, as provided by the Plan and Section 3.2

above, by any person or persons other than the Optionee, the notice must be

accompanied by appropriate proof of right of such person or persons to exercise

the Option.  As soon as practicable

after the effective exercise of the Option, the Optionee will be recorded on

the stock transfer books of the Company as the owner of the Option Shares

purchased, and the Company will deliver to the Optionee one or more duly issued

stock certificates evidencing such ownership.

 

2

 

4.2           Payment.  At the time of exercise of this Option, the

Optionee must pay the total purchase price of the Option Shares to be purchased

entirely in cash (including a check, bank draft or money order, payable to the

order of the Company); provided, however, that the Committee, in its sole

discretion, may allow such payment to be made, in whole or in part, by tender

of a promissory note (on terms acceptable to the Committee in its sole

discretion) or a Broker Exercise Notice or Previously Acquired Shares (as such

terms are defined in the Plan), or by a combination of such methods.  In the event the Optionee is permitted to

pay the total purchase price of this Option in whole or in part with Previously

Acquired Shares, the value of such shares will be equal to their Fair Market

Value on the date of exercise of this Option.

5.             Rights

of Optionee; Transferability.

5.1           Employment.  Nothing in this Agreement will interfere

with or limit in any way the right of the Company or any Subsidiary to

terminate the employment of the Optionee at any time, nor confer upon the

Optionee any right to continue in the employ of the Company or any Subsidiary

at any particular position or rate of pay or for any particular period of time.

5.2           Rights as a Shareholder.  The Optionee will have no rights as a

shareholder unless and until all conditions to the effective exercise of this

Option (including, without limitation, the conditions set forth in Sections 4

and 6 of this Agreement) have been satisfied and the Optionee has become the

holder of record of such shares.  No

adjustment will be made for dividends or distributions with respect to this

Option as to which there is a record date preceding the date the Optionee

becomes the holder of record of such shares, except as may otherwise be

provided in the Plan or determined by the Committee in its sole discretion.

5.3           Restrictions on Transfer.  Except pursuant to testamentary will or the

laws of descent and distribution or as otherwise expressly permitted by the

Plan, no right or interest of the Optionee in this Option prior to exercise may

be assigned or transferred, or subjected to any lien, during the lifetime of

the Optionee, either voluntarily or involuntarily, directly or indirectly, by

operation of law or otherwise.  The

Optionee will, however, be entitled to designate a beneficiary to receive this

Option upon such Optionee’s death, and, in the event of the Optionee’s death,

exercise of this Option (to the extent permitted pursuant to Section 3.2(a) of

this Agreement) may be made by the Optionee’s legal representatives, heirs and

legatees.

5.4           Breach of Confidentiality or

Non-Compete Agreements.  Notwithstanding

anything in this Agreement or the Plan to the contrary, in the event that the

Optionee materially breaches the terms of any confidentiality or non-compete

agreement entered into with the Company or any Subsidiary, whether such breach

occurs before or after termination of the Optionee’s employment with the

Company or any Subsidiary, the Committee in its sole discretion may immediately

terminate all rights of the Optionee under the Plan and this Agreement without

notice of any kind.

3

 

6.             Securities

Law and Other Restrictions.

Notwithstanding any other

provision of the Plan or this Agreement, the Company will not be required to

issue, and the Optionee may not sell, assign, transfer or otherwise dispose of,

any Option Shares, unless (a) there is in effect with respect to the

Option Shares a registration statement under the Securities Act of 1933, as

amended, and any applicable state or foreign securities laws or an exemption

from such registration, and (b) there has been obtained any other consent,

approval or permit from any other regulatory body which the Committee, in its

sole discretion, deems necessary or advisable. 

The Company may condition such issuance, sale or transfer upon the

receipt of any representations or agreements from the parties involved, and the

placement of any legends on certificates representing Option Shares, as may be

deemed necessary or advisable by the Company in order to comply with such

securities law or other restrictions.

7.             Withholding

Taxes.

The Company is entitled to (a) withhold and deduct from future wages of

the Optionee (or from other amounts that may be due and owing to the Optionee

from the Company), or make other arrangements for the collection of, all

legally required amounts necessary to satisfy any federal, state or local

withholding and employment-related tax requirements attributable to the Option,

including, without limitation, the grant or exercise of this Option or a

disqualifying disposition of any Option Shares, or (b) require the Optionee

promptly to remit the amount of such withholding to the Company before acting

on the Optionee’s notice of exercise of this Option.  In the event that the Company is unable to withhold such amounts,

for whatever reason, the Optionee agrees to pay to the Company an amount equal

to the amount the Company would otherwise be required to withhold under

federal, state or local law.

8.             Adjustments.

In

the event of any reorganization, merger, consolidation, recapitalization,

liquidation, reclassification, stock dividend, stock split, combination of

shares, rights offering, divestiture or extraordinary dividend (including a

spin-off), or any other similar change in the corporate structure or shares of

the Company, the Committee (or, if the Company is not the surviving corporation

in any such transaction, the board of directors of the surviving corporation),

in order to prevent dilution or enlargement of the rights of the Optionee, will

make appropriate adjustment (which determination will be conclusive) as to the

number and kind of securities or other property (including cash) subject to,

and the exercise price of, this Option.

9.             Subject

to Plan.

The Option and the Option Shares granted and issued pursuant to this

Agreement have been granted and issued under, and are subject to the terms of,

the Plan.  The terms of the Plan are

incorporated by reference in this Agreement in their entirety, and the

Optionee, by execution of this Agreement, acknowledges having received a copy

of the Plan.  The provisions of this

Agreement will be interpreted as to be consistent with the Plan, and any

ambiguities in this Agreement will be interpreted by reference to the

Plan.  In the event that any provision

of this Agreement is inconsistent with the terms of the Plan, the terms of the

Plan will prevail.

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10.           Incentive

Stock Option Limitations.

10.1         Limitation on Amount.  To the extent that the aggregate Fair Market

Value (determined as of the date of grant) of the shares of Common Stock with

respect to which incentive stock options (within the meaning of Section 422 of

the Code) are exercisable for the first time by the Optionee during any

calendar year (under the Plan and any other incentive stock option plans of the

Company or any subsidiary or parent corporation of the Company (within the

meaning of the Code)) exceeds $100,000 (or such other amount as may be

prescribed by the Code from time to time), such excess incentive stock options

will be treated as non-statutory stock options in the manner set forth in the

Plan.

10.2         Limitation on Exercisability;

Disposition of Option Shares .  Any

incentive stock option that remains unexercised more than one year following

termination of employment by reason of Disability or more than three months

following termination for any reason other than death or Disability will

thereafter be deemed to be a non-statutory stock option.  In addition, in the event that a disposition

(as defined in Section 424(c) of the Code) of shares of Common Stock acquired

pursuant to the exercise of an incentive stock option occurs prior to the

expiration of two years after its date of grant or the expiration of one year

after its date of exercise (a “disqualifying disposition”), such incentive stock

option will, to the extent of such disqualifying disposition, be treated in a

manner similar to a non-statutory stock option.

10.3         No Representation or Warranty.  Section 422 of the Code and the rules and

regulations thereunder are complex, and neither the Plan nor this Agreement

purports to summarize or otherwise set forth all of the conditions that need to

be satisfied in order for this Option to qualify as an incentive stock

option.  In addition, this Option may

contain terms and conditions that allow for exercise of this Option beyond the

periods permitted by Section 422 of the Code, including, without limitation,

the periods described in Section 10.2 of this Agreement.  Accordingly, the Company makes no representation

or warranty regarding whether the exercise of this Option will qualify as the

exercise of an incentive stock option, and the Company recommends that the

Optionee consult with the Optionee’s own advisors before making any

determination regarding the exercise of this Option or the sale of the Option

Shares.  

11.           Miscellaneous.

11.1         Binding Effect.  This Agreement will be binding upon the

heirs, executors, administrators and successors of the parties to this

Agreement.

11.2         Governing Law.  This Agreement and all rights and

obligations under this Agreement will be construed in accordance with the Plan

and governed by the laws of the State of Delaware, without regard to conflicts

of laws provisions.  Any legal

proceeding related to this Agreement will be brought in an appropriate Illinois

court, and the parties to this Agreement consent to the exclusive jurisdiction

of the court for this purpose.

5

 

11.3         Entire Agreement.  This Agreement and the Plan set forth the

entire agreement and understanding of the parties to this Agreement with

respect to the grant and exercise of this Option and the administration of the

Plan and supersede all prior agreements, arrangements, plans and understandings

relating to the grant and exercise of this Option and the administration of the

Plan.

11.4         Amendment and Waiver.  Other than as provided in the Plan, this

Agreement may be amended, waived, modified or canceled only by a written

instrument executed by the parties to this Agreement or, in the case of a

waiver, by the party waiving compliance.

The parties to this Agreement have executed this Agreement effective

the day and year first above written.

 

	

  BIOSANTE

  PHARMACEUTICALS, INC.

  	 

	

   

  	 

	

  By

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its

  	

   

  	

   

  
					

By

execution of this Agreement,                                                                                                                                                           

the Optionee acknowledges having

received a copy of the

Plan.

	

  OPTIONEE

  
	

   

  
	

   

  
	

  (Signature)

  
	

   

  
	

   

  
	

  (Name and Address)

  
	

   

  
	

   

  
	

   

  
	

   

  

 

 

 

6Amendment No

[Portions

of this Exhibit have been omitted pursuant to a request for confidentiality

under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  A copy of this Exhibit with all sections

intact has been filed separately with the Securities and Exchange Commission.]

Exhibit

10.18

 

Amendment No. 1

to the

License Agreement

dated 13th of June 2000

(the “Agreement”)

by and between

Antares Pharma IPL AG, Zug, Switzerland as Licensor

(formerly known as

Permatec Technologie AG)

and

BioSante Pharmaceuticals, Inc., Lincolnshire, IL, U.S.A. as

Licensee

 

	

   

  

 

 

Recitals:

 

WHEREAS, Permatec Technologie AG has changed its corporate name into Antares

Pharma IPL AG (“ANTARES”); and

WHEREAS, “ANTARES” has secured a third party being interested in a license

package which package would — inter alia — include the rights to certain

Products (all capitalized terms used herein but not defined shall have such

meaning as ascribed to such terms in the Agreement) in specified countries of

the Territory as licensed to BioSante Pharmaceuticals, Inc. (“BIOSANTE”) under

the Agreement; and

WHEREAS, BIOSANTE is prepared to return such rights to certain Products in

specified countries included in the license under the Agreement for the

consideration described and under the terms and conditions set forth herein

below.

NOW THEREFORE, the Parties hereby agree pursuant to this Amendment

No. 1 to the License Agreement dated 13th of June 2000 (the

“Agreement”) (“Amendment No. 1”) to amend the Agreement as follows:

1.            Change of Corporate Name

 

Following the change of

corporate name from Permatec Technologie AG into Antares Pharma IPL AG

effective as of 15th February 2001, the Agreement is hereby amended

as follows for clarification and to make the Agreement consistent with this

Amendment No. 1.

 

 

 

(a)                                  all references in the Agreement to

Permatec Technologie AG shall be substituted by Antares Pharma IPL AG; and

(b)                                 all references in the Agreement to

PERMATEC shall be substituted by ANTARES.

2.           Return of Rights

 

2.1                                 BIOSANTE hereby returns its rights

granted under the Agreement as part of the license (including without

limitation rights to Develop, apply and receive Approval as applicant, Market,

use and sell) to ANTARES with respect to:

(a)                                  all rights to the Product Patch E2 (where

estradiol is the sole active ingredient and where the patch is applied to the

skin) for all countries of the Territory; and

(b)                                 the rights to the Product Gel E2 (where

estradiol is the sole active ingredient and where the gel is applied to the

skin), for the countries Australia and Malaysia; and

(c)                                  the rights to the Product Gel

Testosterone (where testosterone is the sole active ingredient and where the

gel is applied to the skin), for the countries Australia and Malaysia.

All such rights returned

to ANTARES as described in this Section 2.1 shall be collectively referred to

hereinafter as the “Returned Rights”).

2.2                                 In order to give effect to the waiver and

return of the Returned Rights, the parties agree to amend the Agreement as

follows:

(a)                                  the Product Patch E2 (where estradiol is

the sole active ingredient and where the patch is applied to the skin) is

deleted from the list of Products attached to the Agreement as Exhibit B, and

all references to Patch E2 in the Agreement are deleted and eliminated without

substitution; and

(b)                                 the definition of the term “Territory” in

Section 1.14 of the Agreement is deleted in its entirety and substituted by the

following definition:

1.14         “Territory” shall mean the

United States of America and those of its territories and possessions over

which the FDS has regulatory authority (the “USA”); Canada; Australia; New

Zealand; South Africa; Israel; Mexico; The People’s Republic of China

(including Hong Kong) (“China”); Malaysia; and Indonesia, except for the

Products Gel E2 and Gel Testosterone, for which Products the term “Territory”

shall mean the United States of America and those of its territories and

possessions over which the FDS has regulatory authority (the “USA”); Canada;

New Zealand; South Africa; Israel; Mexico; The People’s Republic of China

 

2

 

(including Hong Kong)

(“China”); and Indonesia.  The countries

are classified according to Exhibit C in three tiers.

3.           Data Sharing

 

3.1                                 In order to secure the mutual exchange

and sharing of data relating to the Products in the Territory (as amended

hereby) by BIOSANTE and its sub-licensees, and outside the Territory (as

amended hereby) by ANTARES and/or its third party licensees, the parties hereby

agree that Section 5.2 of the Agreement shall in particular also include the

use of any data and results generated in the Territory by BIOSANTE or any of

its sub-licensees (if any) for use by ANTARES or any licensee with respect to

the Returned Rights outside the Territory, and any data and results generated

by ANTARES or any licensee with respect to the Returned Rights for use by

BIOSANTE or its sub-licensees in the Territory.

3.2                                 ANTARES undertakes to include a

respective obligation giving effect to such data sharing also with respect to

the Returned Rights in any eventual license agreement with a third party on the

Returned Rights (or any part thereof).

4.           Changes in Payment Obligations

 

4.1                                 As consideration for the Returned Rights

by BIOSANTE, the parties agree to eliminate certain payment obligation of

BIOSANTE under the Agreement as specified herein below:

(a)                                  the payment obligation of BIOSANTE under

Section 3.3.1 of the Agreement in the amount of

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

shall be eliminated from the Agreement; and [Portions of this section have been

omitted pursuant to a request for confidentiality under Rule 24b-2 of the

Securities Exchange Act of 1934, as amended. 

A copy of this Agreement with this section intact has been filed

separately with the Securities and Exchange Commission.]

(b)                                 the payment obligation of BIOSANTE under

Section 3.3.2 of the Agreement in the amount of

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

shall be eliminated from the Agreement; and [Portions of this section have been

omitted pursuant to a request for confidentiality under Rule 24b-2 of the

Securities Exchange Act of 1934, as amended. 

A copy of this Agreement with this section intact has been filed

separately with the Securities and Exchange Commission.]

(c)                                  the milestone payment obligation of

BIOSANTE under Section10.3.3.1 of the Agreement in the amount of

XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX, shall be

 

3

 

eliminated from the Agreement.  [Portions of this section have been omitted

pursuant to a request for confidentiality

under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  A copy of this Agreement with this section

intact has been filed separately with the Securities and Exchange Commission.]

4.2                                 As further consideration for the Returned

Rights by BIOSANTE, ANTARES agrees that its obligation under Section 4.1.3 of

the Agreement is not diminished by this Amendment No. 1, such that ANTARES

remains obligated to expend funds for the formulation and production of the

Products remaining under the Agreement, up to a potential maximum of

XXXXXXXXXXXXXXX (XXXXXXXX), and such that the funds it was to have expended on

the Product Patch E2, up to XXXXXXXXXXXXXXX (XXXXXXXX), will be allocated as

additional formulation and production expenditures for Product Gel E2 and

Product Gel Testosterone.  [Portions of

this section have been omitted pursuant to a request for confidentiality under

Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  A copy of this Agreement with this section

intact has been filed separately with the Securities and Exchange Commission.]

4.3                                 The parties hereby confirm that the

consideration described above is sufficient and adequate for the Returned

Rights.

5.           No Further Changes

 

5.1                                 The parties hereby agreed and acknowledge

that the Agreement shall, except for and in due incorporation of the changes

agreed upon in this Amendment No. 1, remain in full force and effect and,

subject to Section 5.2 below, not be otherwise changed, altered or amended.

5.2                                 The parties further agree that in the

event that any further amendment, change or alteration of the language or

wording of any Section of the Agreement would be required to give full effect

to any of the changes agreed upon in this Amendment, then such further

amendment, change or alteration of the language or wording shall be made upon

reasonable request of either party.

5.3                                 This Amendment is agreed to be subject to

the provisions of the Agreement of 11.1. (Governing Law) and 11.2 (Dispute

Resolution) by reference.

IN WITNESS WHEREOF, the

parties hereto have caused this instrument to be executed by their duly

authorized officers with effect as of the 20th day of May, 2001.

 

	

  Antares Pharma IPL AG

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  /s/ Dario Carrara

  	

   

  	

   

  	

   

  
	

  By:

  	

  Dario Carrara

  	

   

  	

  By:

  	

   

  
	

  Its:

  	

  Executive Director

  	

   

  	

  Its:

  	

   

  

 

 

5

 

	

  BIOSANTE PHARMACEUTICALS, INC.

  	

   

  
	

   

  	

   

  
	

  /s/ Stephen M. Simes

  	

   

  
	

  By:

  	

  Stephen M. Simes

  	

   

  
	

  Its:

  	

  President and CEO

  	

   

  

 

 

6

 

EXHIBIT C

 

COUNTRY CLASSIFICATION

 

 

 

First Tier:                                               USA

 

Second Tier:                                          Canada;

China

 

Third Tier:                                             All

other countries of the Territory

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