Document:

Exhibit 4.5

 

BENTLEY PHARMACEUTICALS, INC.

NONQUALIFIED PERFORMANCE VESTING STOCK OPTION
CONTRACT

 

THIS NONQUALIFIED PERFORMANCE VESTING STOCK OPTION CONTRACT entered
into on this 19TH day of April, 1996, between BENTLEY PHARMACEUTICALS, INC., a
Florida corporation (the “Company”), and James R. Murphy (the “Optionee”).

 

W  I  T  N
E  S  S  E  T  H :

 

1.             The Company grants,
as of the date hereof, to the Optionee options to purchase an aggregate of Six
Hundred Thousand (600,000) shares of the Common Stock, $.02 par value per
share, of the Company (the “Common Stock”) with one-third of such options
vesting and becoming exercisable when the closing price of the Company’s Common
Stock on the American Stock Exchange equals or exceeds the exercise price of
$2.89 (being 110% of the fair market value of such shares of Common Stock on
the date hereof) for twenty consecutive trading days; one-third when the
closing price equals or exceeds the exercise price of $3.68 (being 140% of the
fair market value of such shares of Common Stock on the date hereof) for twenty
consecutive trading days; and one-third when the closing price equals or
exceeds the exercise price of $4.73 (being 180% of the fair market value of
such shares of Common Stock on the date hereof) 
for twenty consecutive trading days. 
These options shall not be treated as “incentive stock options” under
Section 422 of the Internal Revenue Code. 
The Company intends that such options constitute Non-Qualified Stock
Options and not be considered options issued under its existing Stock Option
Plans.

 

2.             The term of these
options shall be 10 years from the date hereof. 
The right to purchase shares of Common Stock under these options shall
be cumulative, so that if the full number of shares purchasable in a period shall
not be purchased, the balance may be purchased at any time or from time to time
thereafter, but not after the expiration of the options.  Notwithstanding the foregoing, the options
may not be exercised at any time in an amount less than 100 shares (or the
remaining shares then covered by and purchasable under the options if less than
100) and in no event may a fraction of a share of Common Stock be purchased
under these options.

 

3.             These options shall
be exercised by giving written notice to the Company at its principal office,
presently One Urban Centre, Suite 548, 4830 West Kennedy Boulevard, Tampa,
Florida  33609, Attn:  Corporate Secretary, stating that the
Optionee is exercising these nonqualified stock options, specifying the number
of shares being purchased and accompanied by payment in full of the aggregate
purchase price therefor (a) in cash, by check, or by any other form of
consideration permitted by law, (b) with previously acquired shares of Common
Stock, or (c) a combination of the foregoing.

 

4.             The Company shall
at all times during the term of these options reserve and keep available for
issuance or delivery such number of shares of Common Stock as will be
sufficient to satisfy the requirements of these options, shall pay all original
issue taxes or transfer taxes with

 

 

respect to the issuance or delivery of shares pursuant to the exercise
of such options and all other fees and expenses necessarily incurred by the
Company in connection therewith, except for required income tax or other
withholding amounts.  As long as these
options shall be outstanding, the Company shall use its reasonable best efforts
to cause all shares issuable upon the exercise of these options to be listed
(subject to official notice of issuance) on all securities exchanges on which
the shares of the Company’s Common Stock may then be listed and/or quoted on
NASDAQ.  The Company agrees to include
the underlying shares of Common Stock issuable upon exercise of these options
in a Registration Statement(s) to be filed by the Company with the Securities
and Exchange Commission as soon as is practicable and will use its best efforts
to keep such Registration Statement(s) effective for the entire time that these
options are in effect.  The Company shall
pay all filing fees, related accountants’ and counsels’ fees and all other
registration expenses incurred by the Company in complying with this
requirement.

 

5.             In the event that
the number of outstanding shares of Common Stock is increased or decreased or
changed into a different number or kind of shares or securities by reason of
any merger, share exchange, consolidation, reorganization, recapitalization,
reclassification, stock split, combination of shares, exchange of shares, stock
dividend or other distribution payable in capital stock, or other increase or
decrease in such shares effected without receipt of consideration by the
Company, an adjustment will be made to the remaining outstanding options so
that the proportional interest of the Optionee after such an event will be, to
the extent practicable, the same as before the event.

 

6.             Notwithstanding the
foregoing, the Optionee acknowledges that the Common Stock to be received by
him upon the exercise of these options may not be resold unless (a) a
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”) with respect to the shares of Common Stock to be received upon the
exercise of the options shall be effective and current at the time or (b) there
is an exemption from registration under the Securities Act for the issuance of
the shares of Common Stock.  At the
request of the Company, the Optionee shall execute and deliver to the Company
his representation and warranty, in form and substance satisfactory to the
Company, that the shares of Common Stock to be issued upon the exercise of the
options are being acquired by the Optionee for his own account, for investment
only and not with a view to the resale or distribution thereof.  In addition, the Company may require the
Optionee to represent and warrant to the Company in writing that any subsequent
resale or distribution of shares of Common Stock by him will be made only
pursuant to (i) a Registration Statement under the Securities Act which is
effective and current with respect to the Shares of Common Stock being sold, or
(ii) a specific exemption from the registration requirements of the Securities
Act, but in claiming such exemption, the Optionee shall prior to any offer of
sale or sale of such shares of Common Stock provide the Company with a favorable
written opinion of counsel, in form and substance satisfactory to the Company,
as to the applicability of such exemption to the proposed sale or distribution.

 

7.             The Company may
affix appropriate legends upon the certificates for shares of Common Stock
issued upon exercise of these options and may issue such “stop transfer”
instructions to its transfer agent in respect of such shares as it determines,
in its discretion, to be

 

 

necessary or appropriate under the registration requirements of the
Securities Act.

 

8.             The Company may
withhold cash and/or shares of Common Stock in the amount necessary to satisfy
its obligation to withhold taxes or require the Optionee to pay the Company
such amount in cash promptly upon demand.

 

9.             In the event that
the employment with the Company shall be terminated for any reason (other than
by reason of death or disability), these options may be exercised (to the
extent that the Optionee was entitled to do so at the termination of his
employment) at any time until the expiration of these options; provided,
however, that if the Company terminates the Optionee’s employment after a
change in control of the Company, all options shall vest immediately and be
exercisable in accordance with the terms of the Optionee’s employment
agreement.  In the event that the
employment of the Optionee shall be terminated by disability, the remaining
unexercised portion of the options may be exercised by the Optionee
(notwithstanding that the options had not yet become exercisable with respect
to all or part of such shares at the date of termination) at any time until the
expiration of these options.  If the
Optionee shall die while he is employed by the Company or during the period
following termination of employment in which the Optionee had a right to
exercise the options, such options may by exercised, as to all or any part of
the remaining unexercised portion of the options (notwithstanding that the
options had not yet become exercisable with respect to all or a part of such
shares at the date of death) by a legatee or legatees of such options under the
Optionee’s last will, or by his personal representatives or distributees, at
any time within twelve months after his death, but not thereafter and in no
event after the date on which, except for such death, the options would
otherwise expire.

 

10.           The Optionee
represents and agrees that he will comply with all applicable laws relating to
the grant and exercise of these options and the disposition of the shares of
Common Stock acquired upon exercise of the options, including without
limitation, federal and state securities and “blue sky” laws.

 

11.           These options are
not transferable otherwise than by will or the laws of descent and distribution
and may be exercised, during the lifetime of the Optionee, only by him or his
legal representatives.

 

12.           This Contract shall
be binding upon and inure to the benefit of any successor or assign of the
Company and to any heir, distributee, executor, administrator or legal
representative entitled by law to the Optionee’s rights hereunder.

 

13.           This Contract shall
be governed by and construed in accordance with the laws of the State of
Florida.

 

14.           The invalidity or
illegality of any provision herein shall not affect the validity of any other
provision.

 

3

 

15.           Any notice to be
given hereunder shall be in writing addressed to the Company at One Urban
Centre, Suite 548, 4830 West Kennedy Boulevard, Tampa, Florida  33609, Attention: Corporate Secretary, and
any notice to Optionee shall be addressed to 4 John Stark Lane, Hampton, New
Hampshire  03482 or at such other address
as either party may hereafter designate in writing to the other.  Any such notice shall be deemed to have been
duly given if and when enclosed in a properly sealed envelope or wrapper,
addressed as aforesaid, registered, with return receipt requested, and
deposited, first class postage and registry fees prepaid, in a post office or
branch post office regularly maintained by the United States Government.

 

16.           This Agreement
embodies the entire agreement and understanding between the Company and the
Optionee and supersedes all prior agreements and understandings relating to the
subject matter hereof (with the exception of the Optionee’s Employment
Agreement which governs in the event of termination as a result of a change of
ownership), but does not replace or have any effect on other options issued to
the Optionee by the Company, and this Agreement may not be modified or amended
or any term or provision hereof waived or discharged except in writing, signed
by the party against whom such amendment, modification, waiver or discharge is
sought to be enforced.

 

IN WITNESS WHEREOF, the parties hereto have executed this Contract on
the day and year first above written.

 

	
   

  	
  BENTLEY PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael D. Price

  	
   

  
	
   

  	
   

  	
  Michael D. Price

  
	
   

  	
   

  	
  Vice President, Chief Financial

  Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ James R. Murphy

  	
   

  
	
   

  	
   

  	
  James R. Murphy

  

 

4Exhibit 4.6

 

BENTLEY PHARMACEUTICALS, INC.

NONQUALIFIED PERFORMANCE VESTING STOCK OPTION
CONTRACT

 

THIS NONQUALIFIED PERFORMANCE VESTING STOCK OPTION CONTRACT entered
into on this 19TH day of April, 1996, between BENTLEY PHARMACEUTICALS, INC., a
Florida corporation (the “Company”), and Michael D. Price (the “Optionee”).

 

W  I  T  N
E  S  S  E  T  H :

 

1.             The Company grants,
as of the date hereof, to the Optionee options to purchase an aggregate of Four
Hundred Thousand (400,000) shares of the Common Stock, $.02 par value per
share, of the Company (the “Common Stock”) with one-third of such options
vesting and becoming exercisable when the closing price of the Company’s Common
Stock on the American Stock Exchange equals or exceeds the exercise price of
$2.89 (being 110% of the fair market value of such shares of Common Stock on
the date hereof) for twenty consecutive trading days; one-third when the
closing price equals or exceeds the exercise price of $3.68 (being 140% of the
fair market value of such shares of Common Stock on the date hereof) for twenty
consecutive trading days; and one-third when the closing price equals or
exceeds the exercise price of $4.73 (being 180% of the fair market value of
such shares of Common Stock on the date hereof) for twenty consecutive trading
days.  These options shall not be treated
as “incentive stock options” under Section 422 of the Internal Revenue
Code.  The Company intends that such
options constitute Non-Qualified Stock Options and not be considered options
issued under its existing Stock Option Plans.

 

2.             The term of these
options shall be 10 years from the date hereof. 
The right to purchase shares of Common Stock under these options shall
be cumulative, so that if the full number of shares purchasable in a period shall
not be purchased, the balance may be purchased at any time or from time to time
thereafter, but not after the expiration of the options.  Notwithstanding the foregoing, the options
may not be exercised at any time in an amount less than 100 shares (or the remaining
shares then covered by and purchasable under the options if less than 100) and
in no event may a fraction of a share of Common Stock be purchased under these
options.

 

3.             These options shall
be exercised by giving written notice to the Company at its principal office,
presently One Urban Centre, Suite 548, 4830 West Kennedy Boulevard, Tampa,
Florida  33609, Attn:  Corporate Secretary, stating that the
Optionee is exercising these nonqualified stock options, specifying the number
of shares being purchased and accompanied by payment in full of the aggregate
purchase price therefor (a) in cash, by check, or by any other form of
consideration permitted by law, (b) with previously acquired shares of Common
Stock, or (c) a combination of the foregoing.

 

4.             The Company shall
at all times during the term of these options reserve and keep available for
issuance or delivery such number of shares of Common Stock as will be
sufficient to satisfy the requirements of these options, shall pay all original
issue taxes or transfer taxes with

 

 

respect to the issuance or delivery of shares pursuant to the exercise
of such options and all other fees and expenses necessarily incurred by the
Company in connection therewith, except for required income tax or other
withholding amounts.  As long as these
options shall be outstanding, the Company shall use its reasonable best efforts
to cause all shares issuable upon the exercise of these options to be listed
(subject to official notice of issuance) on all securities exchanges on which
the shares of the Company’s Common Stock may then be listed and/or quoted on
NASDAQ.  The Company agrees to include
the underlying shares of Common Stock issuable upon exercise of these options
in a Registration Statement(s) to be filed by the Company with the Securities
and Exchange Commission as soon as is practicable and will use its best efforts
to keep such Registration Statement(s) effective for the entire time that these
options are in effect.  The Company shall
pay all filing fees, related accountants’ and counsels’ fees and all other
registration expenses incurred by the Company in complying with this
requirement.

 

5.             In the event that
the number of outstanding shares of Common Stock is increased or decreased or
changed into a different number or kind of shares or securities by reason of
any merger, share exchange, consolidation, reorganization, recapitalization,
reclassification, stock split, combination of shares, exchange of shares, stock
dividend or other distribution payable in capital stock, or other increase or
decrease in such shares effected without receipt of consideration by the
Company, an adjustment will be made to the remaining outstanding options so
that the proportional interest of the Optionee after such an event will be, to the
extent practicable, the same as before the event.

 

6.             Notwithstanding the
foregoing, the Optionee acknowledges that the Common Stock to be received by
him upon the exercise of these options may not be resold unless (a) a
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”) with respect to the shares of Common Stock to be received upon the
exercise of the options shall be effective and current at the time or (b) there
is an exemption from registration under the Securities Act for the issuance of
the shares of Common Stock.  At the
request of the Company, the Optionee shall execute and deliver to the Company
his representation and warranty, in form and substance satisfactory to the
Company, that the shares of Common Stock to be issued upon the exercise of the
options are being acquired by the Optionee for his own account, for investment
only and not with a view to the resale or distribution thereof.  In addition, the Company may require the
Optionee to represent and warrant to the Company in writing that any subsequent
resale or distribution of shares of Common Stock by him will be made only
pursuant to (i) a Registration Statement under the Securities Act which is
effective and current with respect to the Shares of Common Stock being sold, or
(ii) a specific exemption from the registration requirements of the Securities
Act, but in claiming such exemption, the Optionee shall prior to any offer of
sale or sale of such shares of Common Stock provide the Company with a favorable
written opinion of counsel, in form and substance satisfactory to the Company,
as to the applicability of such exemption to the proposed sale or distribution.

 

7.             The Company may
affix appropriate legends upon the certificates for shares of Common Stock
issued upon exercise of these options and may issue such “stop transfer”
instructions to its transfer agent in respect of such shares as it determines,
in its discretion, to be

 

 

necessary or appropriate under the registration requirements of the Securities
Act.

 

8.             The Company may
withhold cash and/or shares of Common Stock in the amount necessary to satisfy
its obligation to withhold taxes or require the Optionee to pay the Company
such amount in cash promptly upon demand.

 

9.             In the event that
the employment with the Company shall be terminated for any reason (other than
by reason of death or disability), these options may be exercised (to the
extent that the Optionee was entitled to do so at the termination of his
employment) at any time until the expiration of these options; provided,
however, that if the Company terminates the Optionee’s employment after a
change in control of the Company, all options shall vest immediately and be
exercisable in accordance with the terms of the Optionee’s employment
agreement.  In the event that the
employment of the Optionee shall be terminated by disability, the remaining
unexercised portion of the options may be exercised by the Optionee
(notwithstanding that the options had not yet become exercisable with respect
to all or part of such shares at the date of termination) at any time until the
expiration of these options.  If the
Optionee shall die while he is employed by the Company or during the period
following termination of employment in which the Optionee had a right to
exercise the options, such options may by exercised, as to all or any part of
the remaining unexercised portion of the options (notwithstanding that the
options had not yet become exercisable with respect to all or a part of such
shares at the date of death) by a legatee or legatees of such options under the
Optionee’s last will, or by his personal representatives or distributees, at
any time within twelve months after his death, but not thereafter and in no
event after the date on which, except for such death, the options would
otherwise expire.

 

10.           The Optionee
represents and agrees that he will comply with all applicable laws relating to
the grant and exercise of these options and the disposition of the shares of
Common Stock acquired upon exercise of the options, including without
limitation, federal and state securities and “blue sky” laws.

 

11.           These options are
not transferable otherwise than by will or the laws of descent and distribution
and may be exercised, during the lifetime of the Optionee, only by him or his
legal representatives.

 

12.           This Contract shall
be binding upon and inure to the benefit of any successor or assign of the
Company and to any heir, distributee, executor, administrator or legal
representative entitled by law to the Optionee’s rights hereunder.

 

13.           This Contract shall
be governed by and construed in accordance with the laws of the State of
Florida.

 

14.           The invalidity or
illegality of any provision herein shall not affect the validity of any other
provision.

 

3

 

15.           Any notice to be
given hereunder shall be in writing addressed to the Company at One Urban
Centre, Suite 548, 4830 West Kennedy Boulevard, Tampa, Florida  33609, Attention: Corporate Secretary, and any
notice to Optionee shall be addressed to 11114 Carrollwood Drive, Tampa,
Florida  33618 or at such other address
as either party may hereafter designate in writing to the other.  Any such notice shall be deemed to have been
duly given if and when enclosed in a properly sealed envelope or wrapper,
addressed as aforesaid, registered, with return receipt requested, and
deposited, first class postage and registry fees prepaid, in a post office or
branch post office regularly maintained by the United States Government.

 

16.           This Agreement
embodies the entire agreement and understanding between the Company and the
Optionee and supersedes all prior agreements and understandings relating to the
subject matter hereof (with the exception of the Optionee’s Employment
Agreement which governs in the event of termination as a result of a change in
control of the Company), but does not replace or have any effect on other
options issued to the Optionee by the Company, and this Agreement may not be
modified or amended or any term or provision hereof waived or discharged except
in writing, signed by the party against whom such amendment, modification,
waiver or discharge is sought to be enforced.

 

IN WITNESS WHEREOF, the parties hereto have executed this Contract on
the day and year first above written.

 

	
   

  	
  BENTLEY PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James R. Murphy

  	
   

  
	
   

  	
   

  	
  James R. Murphy

  
	
   

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Michael D. Price

  	
   

  
	
   

  	
   

  	
  Michael D. Price

  

 

4

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