Document:

exv4w2

Exhibit 4.2

FIRST SUPPLEMENTAL INDENTURE

     FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”), dated as of
November 2, 2011, by and among Lyondell Chemical Company, a Delaware Corporation (the
“Issuer”), LyondellBasell Industries N.V., a public company with limited liability
(naamloze vennootschap) in the country of the Netherlands (the “Company”) and Wells Fargo
Bank, National Association, as trustee under the Indenture referred to below (the
“Trustee”).

WITNESSETH

     WHEREAS, the Issuer, the Company and the other Guarantors (as defined in the Indenture
referred to herein) have heretofore executed and delivered to the Trustee an Indenture (the
“Indenture”), dated as of April 30, 2010, providing for the issuance of 11% Senior Secured
Notes due 2018 (the “Notes”);

     WHEREAS, the Issuer has distributed an Offer to Purchase and Consent Solicitation Statement,
dated as of October 20, 2011 (the “Statement”), with an accompanying Letter of Transmittal
and Consent (the “Letter of Transmittal”), to the Holders of the Notes in connection of the
offer to purchase for cash (the “Tender Offer”) up to $1,318,672,000 in aggregate principal
amount of such Notes and the concurrent solicitation of such Holders’ consents (the “Consent
Solicitation”) to certain proposed amendments to the Indenture;

     WHEREAS, pursuant to Section 9.02 of the Indenture, the Trustee is authorized to execute and
deliver this First Supplemental Indenture;

     WHEREAS, pursuant to the Statement, the Holders of at least a majority in aggregate principal
amount of the Notes outstanding, and with respect to Article III hereof, the Holders of at least
66% in aggregate principal amount of the Notes outstanding, (excluding, in each case, any Notes
owned by the Issuer, the Company or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer or the Company) have consented to all
of the amendments effected by this First Supplemental Indenture in accordance with the provisions
of the Indenture, evidence of such consents has been provided by the Issuer to the Trustee, and all
other conditions precedent, if any, provided for in the Indenture relating to the execution of this
First Supplemental Indenture have been complied with as of the date hereof; and

     WHEREAS, all acts and requirements necessary to make this First Supplemental Indenture the
legal, valid and binding obligation of the Issuer and the Company have been done.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.01. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have
the meanings assigned to them in the Indenture.

     SECTION 1.02. DEFINITION. When used herein, “Trigger Event” shall mean the occurrence
of each of the following events: (1) the 11% Notes Early Payment Date (as such term is defined in
the Statement), or if there is no 11% Notes Early Payment Date, the 11% Notes Final Payment Date
(as such term is defined in the Statement), and (2) the payment to Holders of Notes the total

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applicable Consent Payment (as such term is defined in the Statement) payable as of such 11% Notes
Early Payment Date, or if there is no 11% Notes Early Payment Date, the 11% Notes Final Payment
Date, pursuant to the terms and conditions of the Statement and the Letter of Transmittal.

ARTICLE II

AMENDMENTS TO THE INDENTURE

     SECTION 2.01. CONSENT AND AMENDMENT. Effective upon the Trigger Event, and without any
further action by any party hereto, the Indenture is hereby amended as follows:

     (a) The term “Permitted Holders” and the text of the definition thereof in Section
1.01 shall be deleted in its entirety.

     (b) The text of the definition of “Change of Control” in Section 1.01 shall be amended
and restated in its entirety as follows:

          “Change of Control” means the occurrence of any of the following:

     (1) the sale, lease or transfer, in one or a series of related transactions, of
all or substantially all of the assets of the Company and its Subsidiaries, taken as
a whole, to any Person; or

     (2) the Company becomes aware of (by way of a report or any other filing
pursuant to Section 13(d) of the Exchange Act, proxy, vote, written notice or
otherwise) the acquisition by any Person or group (within the meaning of Section
13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision),
including any group acting for the purpose of acquiring, holding or disposing of
securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), in a
single transaction or in a related series of transactions, by way of acquisition,
merger, amalgamation, consolidation, transfer, conveyance or other business
combination or purchase of beneficial ownership (within the meaning of Rule 13d-3
under the Exchange Act, or any successor provision) of more than 50% of the total
voting power of the Voting Stock of the Company.

     (c) The following new defined term “Leverage Ratio” shall be added to Section 1.01:

“Leverage Ratio” means, with respect to any Person, at any date the ratio of
(i) Indebtedness, as defined in clauses 1(a) , 1(b), 1(c) or 1(d) of the definition
of “Indebtedness,” of such Person and its Restricted Subsidiaries as of such date of
calculation (determined on a consolidated basis in accordance with GAAP), to (ii)
Consolidated EBITDA of such Person for the four full fiscal quarters for which
internal financial statements are available immediately preceding such date of such
calculation. Calculation of the Leverage Ratio shall be made on the same basis, and
with the same adjustments, as those described under the definition of “Secured
Indebtedness Leverage Ratio.”

     (d) The text of Section 4.04(a)(3) shall be amended and restated in its entirety as follows:

     (3) the aggregate amount of Restricted Payments made after the Issue Date
(including the Fair Market Value of non-cash amounts constituting Restricted
Payments and Restricted Payments permitted by clauses (i), (ii) (vi)(B), (viii),
(xii)(B), (xvi) and

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(xxi) (excluding up to $2.6 billion of dividends paid pursuant
thereto) of Section 4.04(b), but excluding all other Restricted Payments permitted
by Section 4.04(b)) shall not exceed the sum of, without duplication.

     (i) 50% of the Consolidated Net Income of the Company for the period
(taken as one accounting period, the “Reference Period”) from October 1,
2011 to the end of the Company’s most recently ended fiscal quarter for
which internal financial statements are available at the time of such
Restricted Payment (or, in the case such Consolidated Net Income for such
period is a deficit, minus 100% of such deficit), plus

     (ii) 100% of the aggregate net cash proceeds, including cash and the
Fair Market Value of property other than cash, received by the Company after
October 1, 2011 (other than net cash proceeds to the extent such net cash
proceeds have been used to Incur Indebtedness, Disqualified Stock or
Preferred Stock pursuant to Section 4.03(b)(xiv) from the issue or sale of
Equity Interests of the Company (excluding Refunding Capital Stock,
Designated Preferred Stock, Excluded Contributions and Disqualified Stock),
including Equity Interests issued upon exercise of warrants or options
(other than an issuance or sale to a Restricted Subsidiary), plus

     (iii) 100% of the aggregate amount of contributions to the capital of
the Company received in cash and the Fair Market Value of property other
than cash after October 1, 2011 (other than Excluded Contributions,
Refunding Capital Stock, Designated Preferred Stock and Disqualified Stock
and other than contributions to the extent such contributions have been used
to Incur Indebtedness, Disqualified Stock or Preferred Stock pursuant to
Section 4.03(b)(xiv)), plus

     (iv) 100% of the principal amount of any Indebtedness, or the
liquidation preference or maximum fixed repurchase price, as the case may
be, of any Disqualified Stock of the Company or any Restricted Subsidiary
thereof issued after October 1, 2011 (other than Indebtedness or
Disqualified Stock issued to the Company or a Restricted Subsidiary thereof)
or 100% of the principal amount of any debt securities of the Company or any
Restricted Subsidiary thereof that are convertible into or exchangeable for
Capital Stock issued after the Issue Date (other than debt securities issued
to the Company or a Restricted Subsidiary thereof) which, in any such case,
have been converted into or exchanged for Equity Interests in the Company
(other than Disqualified Stock) or any direct or indirect parent entity of
the Company (provided in the case of any parent, such Indebtedness or
Disqualified Stock is retired or extinguished) after October 1, 2011, plus

     (v) 100% of the aggregate amount received by the Company or any
Restricted Subsidiary in cash and the Fair Market Value of property other
than cash received by the Company or any Restricted Subsidiary after October
1, 2011 from:

     (A) the sale or other disposition (other than to the Company or
a Restricted Subsidiary of the Company) of Restricted Investments
made by the Company and its Restricted Subsidiaries and from
repurchases

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and redemptions of such Restricted Investments from the
Company and its Restricted Subsidiaries by any Person (other than the
Company or any of its Subsidiaries) and from repayments of loans or
advances which constituted Restricted Investments (other than in each
case to the extent that the Restricted Investment was made pursuant
to clause (vii) of Section 4.04(b) below) or

     (B) the sale (other than to the Company or a Restricted
Subsidiary of the Company) of the Capital Stock of an Unrestricted
Subsidiary, plus

     (vi) in the event any Unrestricted Subsidiary of the Company has been
redesignated as a Restricted Subsidiary or has been merged, consolidated or
amalgamated with or into, or transfers or conveys its assets to, or is
liquidated into, the Company or a Restricted Subsidiary of the Company, in
each case subsequent to October 1, 2011, the Fair Market Value of the
Investment of the Company in such Unrestricted Subsidiary at the time of
such redesignation, combination or transfer (or of the assets transferred or
conveyed, as applicable), after deducting any Indebtedness associated with
the Unrestricted Subsidiary so designated or combined or any Indebtedness
associated with the assets so transferred or conveyed (other than in each
case to the extent that the designation of such Subsidiary as an
Unrestricted Subsidiary was made pursuant to clause (vii) of Section 4.04(b)
below or constituted a Permitted Investment).

     (e) The following new subsection (xxi) shall be added to text of Section 4.04(b), and the word
“and” shall be deleted from the end of subsection (xix) and added the end of subsection (xx):

(xxi) Restricted Payments if, at the time of making such payments, and after giving
effect thereto (including, without limitation, the Incurrence of any Indebtedness to
finance such payment), the Company’s Leverage Ratio would not exceed 2.00 to 1.00;

     (f) The text of the proviso in Section 4.04(b) immediately following the new subsection (xxi)
added pursuant to clause (e) above shall be amended and restated in its entirety as follows::

provided, however, that at the time of, and after giving effect to, any Restricted
Payment permitted under clauses (iii), (vi), (vii), (viii), (ix), (x), (xii)(B) and
(xxi) of this Section 4.04(b), no Default or Event of Default shall have occurred
and be continuing or would occur as a consequence thereof.

ARTICLE III

ADDITIONAL AMENDMENTS TO THE INDENTURE

     SECTION 3.01. CONSENT AND AMENDMENT. Effective upon the Trigger Event, and without any
further action by any party hereto,

     (a) (1) all Collateral securing the Obligations of the Issuer, the Company and the Guarantors
under the Notes, the Guarantees and the Indenture is hereby released, and the Trustee and the
Collateral Agent are authorized and instructed to execute all releases, termination statements and
other documents
reasonably requested by the Issuer, the Company and the Guarantors to evidence such release
and termination of all Security Documents, including the Junior Lien Intercreditor Agreement; and
(2)

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notwithstanding any provision in the Indenture or any Security Document to the contrary, no
existing or future asset or property of the Issuer, the Company or any Guarantor shall constitute
“Collateral.”

     (b) The text of clause (6)(B) of the definition of “Permitted Liens” in Section 1.01
shall be amended and restated in its entirety as follows:

(B) Liens securing (a) Indebtedness in an aggregate principal amount up to 5% of
Consolidated Net Tangible Assets of the Company, or (b) Indebtedness so long as the Notes
are secured by the property or assets securing any such Indebtedness pursuant to security
and intercreditor arrangements not materially less favorable, in the reasonable judgment of
the Company, to the holders of the Notes than the Security Documents and Junior
Intercreditor Agreement, each as in effect with respect to the Collateral securing the Notes
prior to the release of such Collateral pursuant to the First Supplemental Indenture, with
such adjustments as are reasonably necessary to reflect the relevant property or assets
securing such Indebtedness and other circumstances in effect at the relevant time,

     (c) The text of Section 11.04(a)(2)(i) shall be amended and restated in its entirety as
follows:

(i) First Priority Lien Obligations that are secured by Liens on property or assets of the
Issuer or the Company of the type constituting the Collateral and the related Liens are
incurred in reliance on clauses (6)(B)(b) or (6)(D) of the definition of Permitted Liens or

ARTICLE IV

MISCELLANEOUS

     SECTION 4.01. RATIFICATION OF INDENTURE; FIRST SUPPLEMENTAL INDENTURE PART OF INDENTURE.
Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and effect. This First
Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of
Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

     SECTION 4.02. GOVERNING LAW. THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW.

     SECTION 4.03. TRUSTEE MAKES NO REPRESENTATION. The Trustee makes no representation as to the
validity or sufficiency of this First Supplemental Indenture.

     SECTION 4.04. COUNTERPARTS. The parties may sign any number of copies of this First
Supplemental Indenture. Each signed copy shall be an original, but all of them together represent
the same agreement.

     SECTION 4.05. EFFECT OF HEADINGS. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     SECTION 4.06. SEPARABILITY. In case any provision in this First Supplemental Indenture is
invalid, illegal or unenforceable the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

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     IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be
duly executed and attested, all as of the date first above written.

	 	 	 	 	 
	 	LYONDELL CHEMICAL COMPANY, 

as the Issuer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LYONDELLBASELL INDUSTRIES N.V.,

as the Company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Supplemental Indenture for the 11% Notes]

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Supplemental Indenture for the 11% Notes — Wells Fargo Bank, National Association]Exhibit 10.2

Exhibit 10.2

ADVENTRX Pharmaceuticals, Inc. 2008 Omnibus Incentive Plan

Incentive Stock Option Grant Agreement

THIS INCENTIVE STOCK OPTION GRANT AGREEMENT (this “Agreement”), effective as of [                    ]
(the “Grant Date”), is entered into by and between ADVENTRX Pharmaceuticals, Inc., a Delaware
corporation (the “Company”), and [                    ] (the “Grantee”).

1. Grant of Option. The Company hereby grants to the Grantee a stock option (the
“Option”) to purchase [_____] shares of common stock of the Company, par value $0.001 per share
(the “Shares”), at the exercise price of $[_____] per Share (the “Exercise Price”). The Option is
intended to qualify as an incentive stock option under Section 422 of the Code.

2. Subject to the Plan. This Agreement is subject to the provisions of the ADVENTRX
Pharmaceuticals, Inc. 2008 Omnibus Incentive Plan (the “Plan”), and, unless the context requires
otherwise, terms used herein shall have the same meaning as in the Plan. In the event of a
conflict between the provisions of the Plan and this Agreement, the Plan shall control.

3. Term of Option. Unless the Option terminates earlier pursuant to the provisions of
this Agreement, the Option shall expire on the tenth anniversary of the Grant Date.

4. Vesting. The Option shall become vested with respect to 1/48th of the
Shares on each monthly anniversary of [_____]; provided, however, that the Grantee is
then providing Services.

5. Exercise of Option

(a) Manner of Exercise. To the extent vested, the Option may be exercised, in whole
or in part, by delivering written notice to the Company in accordance with paragraph (g) of Section
8 in such form as the Company may require from time to time. Such notice shall specify the number
of Shares subject to the Option as to which the Option is being exercised, and shall be accompanied
by full payment of the Exercise Price of such Shares in a manner permitted under the terms of
Section 5.5 of the Plan, except that payment with previously acquired Shares may only be made with
the consent of the Committee. The Option may be exercised only in multiples of whole Shares and no
fractional Shares shall be issued.

(b) Issuance of Shares. Upon exercise of the Option and payment of the Exercise
Price for the Shares as to which the Option is exercised, the Company shall issue to the Grantee
the applicable number of Shares in the form of fully paid and nonassessable Shares.

(c) Capitalization Adjustments. The number of Shares subject to the Option and the
Exercise Price shall be equitably and appropriately adjusted, if applicable, as provided in Section
12.2 of the Plan.

(d) Withholding. No Shares will be issued on exercise of the Option unless and until
the Grantee pays to the Company, or makes satisfactory arrangements with the Company for payment
of, any federal, state or local taxes required by law to be withheld in respect of the exercise of
the Option. The Grantee hereby agrees that the Company may withhold from the Optionee’s wages or
other remuneration the applicable taxes. At the discretion of the Company, the applicable taxes
may be withheld in kind from the Shares otherwise deliverable to the Grantee on exercise of the
Option, up to the Grantee’s minimum required withholding rate or such other rate that will not
trigger a negative accounting impact.

(e) Notice of Disposition. Grantee agrees to notify the Company in writing within
fifteen (15) days after the date of any disposition of any of the Shares issued upon exercise of
the Option that occurs within the later of two (2) years after the Grant Date or within one (1)
year after such Shares are transferred to the Grantee.

 

 

 

6. Termination of Option

(a) Termination of Employment or Service Relationship Other Than Due to Retirement, Death,
Disability, Involuntary Termination or Cause. Unless the Option has earlier terminated, the
Option shall terminate in its entirety, regardless of whether the Option is vested, ninety (90)
days after the date the Grantee ceases to provide Services for any reason other than, as
applicable, the Grantee’s Retirement, death, Disability, Involuntary Termination or termination for
Cause. Except as provided in paragraphs (b), (c), (d) or (e) of this Section, any portion of the
Option that is not vested at the time the Grantee ceases to provide Services shall immediately
terminate.

(b) Retirement. Upon the Retirement of the Grantee, unless the Option has earlier
terminated, the Option shall continue in effect (and, for purposes of vesting pursuant to Section
4, the Grantee shall be deemed to continue to be providing Services) until the earlier of (i) two
(2) years after the Grantee’s Retirement (or, if later, the fifth anniversary of the Grant Date) or
(ii) the expiration of the Option’s term pursuant to Section 3. For purposes of this Agreement,
“Retirement” shall mean termination of the Grantee’s employment with the Company and its
Subsidiaries, or a successor company (or a subsidiary or parent thereof) and their respective
subsidiaries, other than for Cause (a) if (i) the Grantee is then at least age 60 and (ii) the sum
of the Grantee’s age and years of continuous service with the Company and its Subsidiaries is then
equal to at least 70 or (b) if the Committee characterizes such termination as a “Retirement” for
purposes of this Agreement. For clarity, this Section 6(b) shall apply only to Grantees who are
Employees at the time of termination.

(c) Death. Upon the Grantee’s death, unless the Option has earlier terminated, the
Grantee’s executor or personal representative, the person to whom the Option shall have been
transferred by will or the laws of descent and distribution, or such other permitted transferee, as
the case may be, may exercise the Option in accordance with paragraph (a) of Section 5, to the
extent vested, provided such exercise occurs within twelve (12) months after the date of
the Grantee’s death or by the end of the term of the Option pursuant to Section 3, whichever is
earlier.

(d) Disability. In the event that the Grantee ceases to provide Services by reason of
Disability, unless the Option has earlier terminated, the Option may be exercised, in accordance
with paragraph (a) of Section 5, to the extent vested, provided such exercise occurs within
six (6) months after the date of Disability or by the end of the term of the Option pursuant to
Section 3, whichever is earlier. For purposes of this Agreement, “Disability” shall mean the
Grantee’s becoming disabled within the meaning of Section 22(e)(3) of the Code, or as otherwise
determined by the Committee in its discretion. The Committee may require such proof of Disability
as the Committee in its sole and absolute discretion deems appropriate and the Committee’s
determination as to whether the Grantee has incurred a Disability shall be final and binding on all
parties concerned.

(e) Involuntary Termination. In the event that the Grantee ceases to provide
Services as an Employee by reason of an Involuntary Termination, unless the Option has earlier
terminated, the Option shall, immediately prior to such Involuntary Termination, vest and become
exercisable with respect to 25% of the total number of Shares subject to this Option (or [_____]
Shares), and the Option may be exercised, in accordance with paragraph (a) of Section 5, to the
extent vested as of such Involuntary Termination (for clarity, after taking into account the
foregoing acceleration provision of this paragraph (e)), provided such exercise occurs by
the close of business on the last calendar day of the 12th full calendar month following
the date of such Involuntary Termination. For purposes of this Agreement, “Involuntary
Termination” shall mean: (i) without the Grantee’s express written consent, an action by the
Company’s Board of Directors or external events causing or immediately portending a material
reduction or alteration of the Grantee’s duties, position or responsibilities relative to the
Grantee’s duties, position or responsibilities in effect immediately prior to such reduction or
alteration, or the removal of the Grantee from such position, duties or responsibilities; (ii)
without the Grantee’s express written consent, a material reduction by the Company of the Grantee’s
base salary as in effect immediately prior to such reduction; (iii) without the Grantee’s express
written consent, the relocation of the Grantee’s principal place of employment with the Company by
more than fifty (50) miles; or (iv) any termination of the Grantee by the Company without Cause or
as a result of the Retirement of the Grantee.

(f) Termination for Cause. Upon termination by the Company or a Subsidiary or a
successor company (or a subsidiary or parent thereof) of the Grantee’s employment or service
relationship for Cause, unless the Option has earlier terminated, the Option shall immediately
terminate in its entirety and shall thereafter not be exercisable to any extent whatsoever. For
purposes of this Agreement, “Cause” shall mean (i) any act of personal dishonesty taken by the
Grantee in connection with his or her responsibilities as an employee which is intended to result
in substantial personal enrichment of the Grantee; (ii) Grantee’s conviction of a felony that the
Company’s Board of Directors reasonably believes has had or will have a material detrimental effect
on the Company’s reputation or business; (iii) a willful act by the Grantee that constitutes
misconduct and is materially injurious to the Company; or (iv) continued willful violations by the
Grantee of the Grantee’s obligations to the Company after there has been delivered to the Grantee a
written demand for performance from the Company that describes the basis for the Company’s belief
that the Grantee has not substantially performed his or her duties.

 

 

 

(f) Automatic Extension of Exercise Period. Notwithstanding any provisions of
paragraphs (a), (b), (c), (d) or (e) of this Section to the contrary, if exercise of the Option
following termination of employment or service during the time period set forth in the applicable
paragraph or sale during such period of the Shares acquired on exercise would violate any of the
provisions of federal securities laws (or any Company policy related thereto), the time period to
exercise the Option shall be extended until the later of (i) forty-five (45) days after the date
that the exercise of the Option and sale of the Shares acquired on exercise would not be a
violation of federal securities laws (or a related Company policy), or (ii) the end of the time
period set forth in the applicable paragraph.

7. Change in Control.

(a) Effect on Option. In the event of a Change in Control, unless the Option has
earlier terminated, the Option shall vest and become exercisable with respect to fifty percent
(50%) of the then unvested Shares on the day prior to the date of the Change in Control and shall
vest and become exercisable with respect to the remaining fifty percent (50%) of the then unvested
Shares on the one (1) year anniversary of the Change in Control; provided, however, that
the Grantee is then providing Services.

(b) Assumption or Substitution. Subject to paragraph (a) of this Section 7, in the
event of a Change in Control, to the extent the successor company (or a subsidiary or parent
thereof) does not assume or substitute for the Option on substantially the same terms and
conditions (which may include settlement in the common stock of the successor company (or a
subsidiary or parent thereof)), the Option (i) shall become fully vested and exercisable on the day
prior to the date of the Change in Control if the Grantee (A) is then providing Services or (B) was
the subject of an Involuntary Termination in connection with, related to or in contemplation of the
Change in Control and (ii) may be exercised, in accordance with paragraph (a) of Section 5,
provided such exercise occurs by the close of business on the last calendar day of the
24th full calendar month following the date of such Involuntary Termination.

(c) Tail. Subject to paragraph (a) of this Section 7, in the event of a Change in
Control, to the extent the successor company (or a subsidiary or parent thereof) assumes or
substitutes for the Option on substantially the same terms and conditions (which may include
providing for settlement in the common stock of the successor company (or a subsidiary or parent
thereof)), and in the event of an Involuntary Termination of the Grantee within 12 months following
the date of the Change in Control, the Option shall become fully vested and exercisable, and may be
exercised by the Grantee at any time until the close of business on the last calendar day of the
24th full calendar month following the date of such Involuntary Termination.

8. Miscellaneous.

(a) No Rights of Stockholder. The Grantee shall not have any of the rights of a
stockholder with respect to the Shares subject to this Option until such Shares have been issued
upon the due exercise of the Option.

(b) No Registration Rights; No Right to Settle in Cash. The Company has no obligation
to register with any governmental body or organization (including, without limitation, the U.S.
Securities and Exchange Commission (“SEC”)) any of (a) the offer or issuance of any Award, (b) any
Shares issuable upon the exercise of any Award, or (c) the sale of any Shares issued upon exercise
of any Award, regardless of whether the Company in fact undertakes to register any of the
foregoing. In particular, in the event that any of (x) any offer or issuance of any Award, (y) any
Shares issuable upon exercise of any Award, or (z) the sale of any Shares issued upon exercise of
any Award are not registered with any governmental body or organization (including, without
limitation, the SEC), the Company will not under any circumstance be required to settle its
obligations, if any, under this Plan in cash.

(c) Nontransferability of Option. The Option shall be nontransferable otherwise than
by will or the laws of descent and distribution, and during the lifetime of the Grantee, the Option
may be exercised only by the Grantee or, during the period the Grantee is under a legal disability,
by the Grantee’s guardian or legal representative. Notwithstanding the foregoing, the Grantee
may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory
to the Company, designate a third party who, in the event of the Grantee’s death, shall thereafter
be entitled to exercise the Option.

(d) Severability. If any provision of this Agreement shall be held unlawful or
otherwise invalid or unenforceable in whole or in part by a court of competent jurisdiction, such
provision shall (i) be deemed limited to the extent that such court of competent jurisdiction deems
it lawful, valid and/or enforceable and as so limited shall remain in full force and effect, and
(ii) not affect any other provision of this Agreement or part thereof, each of which shall remain
in full force and effect.

(e) Governing Law. This Agreement shall be governed by, and interpreted in accordance
with, the laws of the State of California, other than its conflict of laws principles.

(f) Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

 

 

 

(g) Notices. All notices required or permitted under this Agreement shall be in
writing and shall be sufficiently made or given if hand delivered or mailed by registered or
certified mail, postage prepaid. Notice by mail shall be deemed delivered on the date on which it
is postmarked.

Notices to the Company should be addressed to:

ADVENTRX Pharmaceuticals, Inc.

12390 El Camino Real, Suite 150

San Diego, CA 92130

Attention: Legal

Notice to the Grantee should be addressed to the Grantee at the Grantee’s address as it
appears on the records of the Company or a Subsidiary or a successor company (or a subsidiary or
parent thereof).

The Company or the Grantee may by writing to the other party, designate a different address
for notices. If the receiving party consents in advance, notice may be transmitted and received
via facsimile or via such other electronic transmission mechanism as may be available to the
parties. Such notices shall be deemed delivered when received.

(h) Agreement Not a Contract. This Agreement (and the grant of the Option) is not an
employment or service contract, and nothing in the Option shall be deemed to create in any way
whatsoever any obligation on Grantee’s part to continue as an employee or director of or consultant
to the Company or a Subsidiary or a successor company (or a subsidiary or parent thereof), or of
the Company or a Subsidiary or a successor company (or a subsidiary or parent thereof) to continue
Grantee’s service as such an employee, director or consultant.

(i) Entire Agreement; Modification. This Agreement and the Plan contain the entire
agreement between the parties with respect to the subject matter contained herein and may not be
modified, except as provided in the Plan or in a written document signed by each of the parties
hereto, and may be rescinded only by a written agreement signed by both parties.

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Grant Date.

	 	 	 	 	 	 	 

	 	 	ADVENTRX PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 

	 	 	 	Grantee

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